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Ratings agency hypocrisy continues on as S&P downgraded China over debt, but ignores U.S.’s 105% debt to GDP

On Sept. 21, S&P ratings agency downgraded China for what they determined as 'risks involved in debt expansion', and this move follows a similar one done by Moody's ratings agency a few months ago against the Far Eastern economy. However neither of these arbiters of credit worthiness have sought fit to impose the same decline on America's own sovereign rating, and this despite the fact that the governme ...

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India joins in on the bandwagon of sovereign governments potentially creating their own cryptocurrencies

Since cryptocurrencies are pretty much in the infant stages of acceptability and understanding, sovereign governments as a whole are on the fence in how to deal with de-centralized money.  However within the BRICS nations there is a growing trend towards co-opting the blockchain platform for their own benefit, and this is leading a majority of the countries within this coalition to begin a serious study on ...

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Fed thankful for hurricane’s Harvey and Irma since it gives them cover for slashing Q3 GDP estimates

It's another fiscal quarter and another major downgrade of GDP estimates by the Atlanta Fed. The U.S. central bank loves to use whatever economic data models are available to justify their narrative while at the same time discounting or even discarding information that could interfere with desired monetary policies.  For example the Fed has pushed the theme of 'economic recovery' for years following their i ...

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EU’s Juncker pressures ancillary states to not just join trade union but to also accept Euro as their primary currency

All appearances within the European Union are pointing to EC commissioner Jean-Claude Juncker wanting to turn Europe into one big superstate as the leading official is seeking to mandate that all ancillary countries who wish to join the coalition's Schengen Zone (trade zone) must also accept the Euro as their primary currency. Additionally on Sept. 13, Juncker called for the Union to create the office of a ...

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Consumers still racking up credit card debt at levels not seen since 2008 and the financial crisis

By now many people have read the stories or seen the surveys that show that the majority of Americans are either living paycheck to paycheck, or don't have enough savings to pay for an emergency expense of more than $400.  Which means that as price inflation continues to soar in the general economy, there are only two ways consumers can keep up with their buying of necessary items.  They skip out on one or ...

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How can the world focus in solutions when everything is now at risk?

The devastation of Hurricanes Harvey and Irma are just the latest in a long line of financial problems that the United States, Europe, and the rest of the world can't afford to pay for.  And as we head into the most volatile time of the market year, the question that crops up is how can individual nations, or the global community, focus on economic solutions when nearly everything is now at risk? Wars: Nort ...

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Reconstruction from Hurricane Irma is the perfect project for both the World Bank and the AIIB

Global natural disasters occur several times per decade, and quite often the bill for recovery is left to charities, a handful of wealthy governments, or in some cases not at all.  But in the wake of Hurricane Irma, which has devastated far more countries in the Caribbean than it has cities and states on the U.S. mainland, perhaps the perfect agencies to assist in their rebuilding are the World Bank and the ...

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Russian finance minister working on regulatory groundwork for cryptocurrencies to end their ‘black market’ use

As we have mentioned in many articles here in the past, it was only a matter of time before individual governments begin to focus on cryptocurrencies and the myriad of other securities sprouting up on the blockchain.  In Japan for example, the government has readily accepted cryptos like Bitcoin as currency and are allowing their use within their general economy. However for China, Russia, and with the othe ...

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Clueless Draghi leaves rates the same while hinting that QE may continue on indefinitely

The fall of the U.S. dollar since the beginning of the year has suddenly left ECB head Mario Draghi to have no answer to the rising strength of the Euro currency.  And as such on Sept. 7, the man who introduced negative interests to the Western financial system is now backtracking on his promise to start downsizing the central bank's balance sheet, and hinted earlier today that bond buying may continue on i ...

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A second Middle Eastern country within a week announces it will begin selling bonds in Chinese RMB

A few days ago, Saudi Arabia announced they were in the process of diversifying away from the dollar and are planning to sell sovereign bonds in RMB in order to shore up their dwindling coffers.  Now on Aug. 31, a second Middle Eastern Gulf nation is reporting to be doing the same as the UAE government of Sharjah could actually beat the Saudi's to the punch and be the first to receive Chinese Yuan from the ...

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In crime people steal from banks, but in Europe the banks steal from you

Besides the Damocles Sword of a bail-in that hangs over every depositor's account in the Western banking system, there is a new threat that has emerged over the past two years that is now engulfing nearly every European institution that deals in banking. Negative Interest Rates. And as of Aug. 30 there are now 19 European countries who's 2-year bonds return a negative yield, and in which some of these count ...

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China’s next move in RMB internationalization may come from ground zero of the petrodollar agreement

On Aug. 25 it was reported that Saudi Arabia was preparing to expand its borrowing into a currency other than the dollar by agreeing to begin selling bonds in exchange for Chinese Yuan. As the Middle Eastern oil power, and heart of the long-standing petrodollar agreement, has over the past few years sold debt primarily in dollar denominations to keep their economy afloat following years of low oil prices, S ...

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