In The News Today

Posted at 11:11 AM (CST) by & filed under In The News.

Bill Holter’s Commentary

For those who whined because the oil for yuan contract did not begin on Jan. 18 as scheduled, here you go!…AND from an Asian publication. I would stress again, be very, VERY careful what you wish for. John Embry once told me over dinner “who wants to be the richest guy in the world if no restaurants are open to have dinner”. Please ponder that John’s questiont for a moment because it is about to become VERY REAL!

China Is Ready For Its Own, Yuan-Based Oil Benchmark
February 8, 2018

SHANGHAI/TOKYO China is almost ready for its next step toward full-fledged superpower status: launching crude oil futures trading.

Final preparations are underway at the Shanghai International Energy Exchange, or INE, in the city’s pilot free trade zone. After five system tests in 2017, the trading platform has had small glitches but is nearly set to go, according to Tang Yun, an assistant to the president of Shanghai-based East Asia Futures. Trading in yuan could start by March, once the authorities give the go-ahead.

While China mostly prohibits foreign investors from trading commodity futures on its soil — to prevent a flood of speculative funds — it is opening its doors wide for crude. Jiang Yang, vice chairman of the China Securities Regulatory Commission, on Jan. 15 said China will welcome both domestic and overseas investors.


Bill Holter’s Commentary

Here you go folks…China will begin trading oil futures March 26!!! Please note, dollars will be accepted as initial margin but the oil will be priced in yuan. Put your seatbelts on, the ride so far this week may seem smooth compared to what is coming. Oil priced in yuan will be part of the coming reset!

China Plans To Launch Crude Oil Futures On March 26: Securities Regulator
February 8, 2018

BEIJING (Reuters) – China plans to launch its long-awaited crude oil futures contract on March 26, the country’s securities regulator said on Friday, a move that could potentially shake up pricing of the world’s largest commodity market.

Chang Depeng, a spokesman for the China Securities Regulatory Commission (CSRC), gave the launch date at a regular briefing in Beijing, confirming what two sources familiar with the situation told Reuters earlier on Friday.

The launch will mark the culmination of a years-long push by China to create Asia’s first oil futures benchmark, and is aimed at giving the world’s biggest oil importer more clout in pricing crude sold to Asia.

It will potentially give the Shanghai International Energy Exchange (INE), which will operate the new contract, a share of the trillions of dollars each year in oil futures trading.


Bill Holter’s Commentary

Very significant!

Moody’s Threatens US Downgrade Due To Soaring Debt, “Fiscal Deterioration”
February 9, 2018

Back in 2011, Standard & Poors’ shocked the world, and the Obama administration, when it dared to downgrade the US from its vaunted AAA rating, something that had never happened before (and led to the resignation of S&P’s CEO and a dramatic crackdown on the rating agency led by Tim Geithner).

Nearly seven years later, with the US on the verge of another government shutdown and debt ceiling breach (with the agreement reached only after the midnight hour, literally) this time it is Warren Buffett’s own rating agency, Moody’s, which on Friday morning warned Trump that he too should prepare for a downgrade form the one rater that kept quiet in 2011. The reason: Trump’s – and the Republicans and Democrats – aggressive fiscal policies which will sink the US even deeper into debt insolvency, while widening the budget deficit, resulting in “meaningful fiscal deterioration.”

In short: a US downgrade due to Trumponomics is inevitable. And incidentally, with today’s 2-year debt ceiling extension, it means that once total US debt resets at end of day – unburdened by the debt ceiling – it will be at or just shy of $21 trillion.