In The News Today

Posted at 10:38 AM (CST) by & filed under In The News.

Bill Holter’s Commentary

This is significant.

China And Russia Look To Ditch Dollar With New Payments System In Move To Avoid Sanctions
November 23, 2018

China and Russia are drafting a pact to boost the use of their national currencies in bilateral and international trade, underscoring their intent to cut their reliance on the US dollar.

The development of a new international financial payments system aims to address rising concerns over additional US sanctions and trade tariffs.

Russian Prime Minister Dmitry Medvedev, during his visit to China earlier this month, said the two nations were discussing the launch of a new cross-border system for direct payment of trade invoices in the yuan and the rouble.

He also said discussions were under way to allow the use of China’s UnionPay credit card in Russia and Russia’s Mir card in China.

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Bill Holter’s Commentary

“Debt kills”, you will shortly understand this concept…

Stock-Market Margin Debt Plunges Most Since Lehman Moment
November 21, 2018

It gets serious. Margin calls?

No one knows what the total leverage in the stock market is. But we know it’s huge and has surged in past years, based on the limited data we have, and from reports by various brokers about their “securities-based loans” (SBLs), and from individual fiascos when, for example, a $1.6 billion SBL to just one guy blows up. There are many ways to use leverage to fund stock holdings, including credit card loans, HELOCs, loans at the institutional level, loans by companies to its executives to buy the company’s shares, or the super-hot category of SBLs, where brokers lend to their clients. None of them are reported on an overall basis.

The only form of stock market leverage that is reported monthly is “margin debt” – the amount individual and institutional investors borrow from their brokers against their portfolios. Margin debt is subject to well-rehearsed margin calls. And apparently, they have kicked off.

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Bill Holter’s Commentary

Willem Middlekoop, Kyle Bass, and Luke Gromen regarding the dollar. A pretty interesting line of thought!