Jim’s Mailbox

Posted at 7:38 PM (CST) by & filed under Jim's Mailbox.

Courtesy of Dave.

Jim

Putin Lays Down the Law at Valdai
October 19, 2018

Every year Russian President Vladimir Putin speaks at the Valdai Economic Forum. And each year his talk is important. Putin isn’t one to mince words on important issues.

With tensions between Russia and the West reaching Cold War levels, Valdai represented the first time we’ve heard Putin speak in a long-form discussion since Helsinki and the events thereafter — IL-20, Khashoggi, etc.

So, this talk is worth everyone’s time. And when I say everyone’s I mean every single person who could be affected by the breakdown of the U.S. political system and how that spills over onto Russia’s shores.

In other words, pretty much everyone on the planet.

Because what Putin did at Valdai was to lay down the new rules of conduct in geopolitical affairs. He put the U.S. and European oligarchs I call The Davos Crowd on notice.

More…

 

That control has been broken! Interesting!

GG

Gold Shorts Suffer Biggest Squeeze Since 1999 As Specs Abandon VIX-Selling Spree
October 21, 2018

Until the last couple of weeks, net speculative positioning in financial markets was all on one side of the boat with speculators are woefully unprepared for a major risk-off event, suggesting complacency had reached epidemic levels as equities broke out to new highs.

Then the calendar rolled over to October and everything changed…

In the last two weeks, the aggregate net speculative positioning in futures in what are considered traditional risk-off assets – gold, 10-year Treasuries, and the VIX – surged by the most since Brexit…

 

 

 

 

 

More…

 

What did you say about global interest rates, Bill, in this Saturday’s one hour plus conference call for subscribers?

Courtesy of GG.

Jim

Dollar Libor at a 10-Year High Adds to Global Funding Headwinds
October 17, 2018

The global dollar benchmark rate that everyone loves to hate and which regulators have marked for extinction approached a 10-year high Wednesday, adding to strains on some emerging economies and U.S. companies alike.

The London interbank offered rate still serves as the basis for trillions of dollars in loans and floating-rate securities globally, even though its replacement is gaining traction. Steeper U.S. interbank borrowing costs risk rippling across developing economies by tightening financial conditions and forcing local-currency benchmarks higher. It’s a development that could heighten investor concern at a time when a rising dollar has sparked worries about emerging-market borrowers’ ability to repay loans in the greenback.

Three-month U.S. dollar Libor is now 2.4496 percent, the highest since November 2008. The main driver is that traders are pricing in further Federal Reserve tightening. Officials’ latest quarterly forecasts indicate another rate hike this year followed by three more in 2019.

More…

 

Do not just fugetaboutit! Thanks too GG for the heads up.

Jim

With EU Deadline Looming, Italy’s League Warns of Risks to Banks
October 21, 2018

Italy is due to answer the European Commission’s doubts about its budget plan following a warning from a government official in Rome that a widening bond yield spread may push some banks toward a recapitalization.

The Commission, in a bluntly worded letter last week, questioned the soundness of Italy’s expansive spending program for 2019. Commissioners Valdis Dombrovskis and Pierre Moscovici said the “significant deviation” needs a response by noon on Monday.

Investors have been closely watching the rift between Rome and Brussels, driving up Italian debt yields and widening the 10-year yield spread with German bunds. An increase in Italy’s bond-yield spread is a risk for domestic banks and is adding to tensions in the financial system, according to Cabinet Undersecretary Giancarlo Giorgetti.

More…

 

Dear WPP member, David,

The CIA economic moron blew this one. He, not her, might have blown the USA economically, all to hell.

The genius that suggested the premature use of a weaponized SWIFT to the CIA Noodle Factory 7th floor management to use it on a nothing burger is the ASS HOLE of the Century.

You think he might have asked us or subscribed because at the end of the day he put the USA in ultimate currency shit hole.

Can a CIA guy be demoted to a private from a general after he retires?

You know they all have ranks.

Jim

Jim,

You were the fist to state the early use of SWIFT was a mistake…

Dave

Foreign Banks Are Embracing Russia’s Alternative To SWIFT, Moscow Says
October 21, 2018

On Friday, one day after Russia and China pledged to reduce their reliance on the dollar by increasing the amount of bilateral trade conducted in rubles and yuan (a goal toward which much progress has already been made over the past three years), Russia’s Central Bank provided the latest update on Moscow’s alternative to US-dominated international payments network SWIFT.

Moscow started working on the project back in 2014, when international sanctions over Russia’s annexation of Crimea inspired fears that the country’s largest banks would soon be cut off from SWIFT which, though it’s based in Belgium and claims to be politically neutral, is effectively controlled by the US Treasury.

 

 

 

 

 

More…

 

Courtesy of JB.

Jim

 

 

 

 

 

 

 

Ack!

Contentious times such as these days are why universe provided aikido.

Keep one point.

Relax completely.

Keep weight underside.

Extend ki.

Express peace.

Clif

More…

 

Courtesy of Dave.

Jim

Putin Lays Down the Law at Valdai
October 19, 2018

Every year Russian President Vladimir Putin speaks at the Valdai Economic Forum. And each year his talk is important. Putin isn’t one to mince words on important issues.

With tensions between Russia and the West reaching Cold War levels, Valdai represented the first time we’ve heard Putin speak in a long-form discussion since Helsinki and the events thereafter — IL-20, Khashoggi, etc.

So, this talk is worth everyone’s time. And when I say everyone’s I mean every single person who could be affected by the breakdown of the U.S. political system and how that spills over onto Russia’s shores.

In other words, pretty much everyone on the planet.

Because what Putin did at Valdai was to lay down the new rules of conduct in geopolitical affairs. He put the U.S. and European oligarchs I call The Davos Crowd on notice.

More…

 

That control has been broken! Interesting!

GG

Gold Shorts Suffer Biggest Squeeze Since 1999 As Specs Abandon VIX-Selling Spree
October 21, 2018

Until the last couple of weeks, net speculative positioning in financial markets was all on one side of the boat with speculators are woefully unprepared for a major risk-off event, suggesting complacency had reached epidemic levels as equities broke out to new highs.

Then the calendar rolled over to October and everything changed…

In the last two weeks, the aggregate net speculative positioning in futures in what are considered traditional risk-off assets – gold, 10-year Treasuries, and the VIX – surged by the most since Brexit…

More…

 

What did you say about global interest rates, Bill, in this Saturday’s one hour plus conference call for subscribers?

Courtesy of GG.

Jim

Dollar Libor at a 10-Year High Adds to Global Funding Headwinds
October 17, 2018

The global dollar benchmark rate that everyone loves to hate and which regulators have marked for extinction approached a 10-year high Wednesday, adding to strains on some emerging economies and U.S. companies alike.

The London interbank offered rate still serves as the basis for trillions of dollars in loans and floating-rate securities globally, even though its replacement is gaining traction. Steeper U.S. interbank borrowing costs risk rippling across developing economies by tightening financial conditions and forcing local-currency benchmarks higher. It’s a development that could heighten investor concern at a time when a rising dollar has sparked worries about emerging-market borrowers’ ability to repay loans in the greenback.

Three-month U.S. dollar Libor is now 2.4496 percent, the highest since November 2008. The main driver is that traders are pricing in further Federal Reserve tightening. Officials’ latest quarterly forecasts indicate another rate hike this year followed by three more in 2019.

More…

 

Do not just fugetaboutit! Thanks too GG for the heads up.

Jim

With EU Deadline Looming, Italy’s League Warns of Risks to Banks
October 21, 2018

Italy is due to answer the European Commission’s doubts about its budget plan following a warning from a government official in Rome that a widening bond yield spread may push some banks toward a recapitalization.

The Commission, in a bluntly worded letter last week, questioned the soundness of Italy’s expansive spending program for 2019. Commissioners Valdis Dombrovskis and Pierre Moscovici said the “significant deviation” needs a response by noon on Monday.

Investors have been closely watching the rift between Rome and Brussels, driving up Italian debt yields and widening the 10-year yield spread with German bunds. An increase in Italy’s bond-yield spread is a risk for domestic banks and is adding to tensions in the financial system, according to Cabinet Undersecretary Giancarlo Giorgetti.

More…

 

Jim,

You were the fist to state the early use of SWIFT was a mistake…

Dave

Foreign Banks Are Embracing Russia’s Alternative To SWIFT, Moscow Says
October 21, 2018

On Friday, one day after Russia and China pledged to reduce their reliance on the dollar by increasing the amount of bilateral trade conducted in rubles and yuan (a goal toward which much progress has already been made over the past three years), Russia’s Central Bank provided the latest update on Moscow’s alternative to US-dominated international payments network SWIFT.

Moscow started working on the project back in 2014, when international sanctions over Russia’s annexation of Crimea inspired fears that the country’s largest banks would soon be cut off from SWIFT which, though it’s based in Belgium and claims to be politically neutral, is effectively controlled by the US Treasury.

More…

 

Courtesy of JB.

Jim

 

Ack!

Contentious times such as these days are why universe provided aikido.

Keep one point.

Relax completely.

Keep weight underside.

Extend ki.

Express peace.

Clif

More…