2013-08-08

By Emann Charts

Exclusive: Saudi offers Russia deal to scale back Assad support - sources

(Reuters) - Saudi Arabia has offered Russia economic incentives including a major arms deal and a pledge not to challenge Russian gas sales if Moscow scales back support for Syrian President Bashar al-Assad, Middle East sources and Western diplomats said on Wednesday.

The proposed deal between two of the leading power brokers in Syria's devastating civil war was set out by Saudi intelligence chief Prince Bandar bin Sultan at a meeting with Russian President Vladimir Putin in Moscow last week, they said.

Silver & Gold - SMOKING COMEX GUN - MUST WATCH - Mike Maloney & Grant Williams

For those wondering what the recent drawdown in COMEX and GLD stocks mean - please watch this video recorded in the GoldSilver.com boardroom moments ago. Grant Williams of Vulpes Asset Management joins CEO Michael Maloney to connect the dots on what may be some of the most important events of the last few years.

Billionaires Dumping Stocks, Economist Knows Why

Despite the 6.5% stock market rally over the last three months, a handful of billionaires are quietly dumping their American stocks . . . and fast.

Warren Buffett, who has been a cheerleader for U.S. stocks for quite some time, is dumping shares at an alarming rate. He recently complained of “disappointing performance” in dyed-in-the-wool American companies like Johnson & Johnson, Procter & Gamble, and Kraft Foods.

King Abdullah holds talks with Yemeni president

Custodian of the Two Holy Mosques King Abdullah yesterday held talks with Yemeni President Abd Rabbuh Mansur Hadi at his palace in Jeddah. The two leaders discussed major regional and international issues as well as ways of strengthening bilateral cooperation.

The talks were attended by Makkah Gov. Prince Khaled Al-Faisal, Second Deputy Premier Prince Muqrin, Education Minister Prince Faisal bin Abdullah and Interior Minister Prince Muhammad bin Naif.

“Debt Equals War and Equity Equals Peace”

On behalf of Matterhorn Asset Management, independent German financial journalist Lars Schall talked with U.S. financial investment advisor Catherine Austin Fitts. Inter alia, they discussed: the shift in the global economy; various facets of gold and currency politics; the difference between official reality and reality; some background regarding NSA & Co.; and last but not least the use of the term “conspiracy theorist”. She says: “When I hear people be derogatory about conspiracies basically that to me in my world that I grew up in is simply a symptom that they have agreed to be powerless and wear it like a badge of honor.”

The $7 Trillion Problem That Could Sink Asia

“It’s our currency, but it’s your problem.” This musing from Nixon-era Treasury Secretary John Connally is about to find new relevance as the White House battles Republicans over raising the U.S. debt limit.

Connally couldn’t have foreseen how right he would be 42 years on as Asia sits on almost $7 trillion in currency reserves, much of it in dollars. Asia’s central banks engaged in a kind of financial arms race after a 1997 crisis, stockpiling dollars as a defense against turmoil. That altered the financial landscape in two ways: One, Asia now has more weapons against market unrest than it knows what to do with. Two, Asia is essentially America’s banker, with China and Japan having the most at stake.

Barrick Gold Closing Mines to Curb Output as Price Drops

Barrick Gold Corp. (ABX) plans to either sell, close or curb production at 12 of 27 mines as the world’s largest gold producer tries to bolster profitability after reporting the industry’s biggest write-off.

Barrick wrote down $8.7 billion of the value of global assets, slashed its dividend by 75 percent and cut 30 percent of corporate-office staff, the Toronto-based miner said yesterday in its second-quarter earnings statement.

US Conducts “Sweeping Overhaul” of Pacific War Plans

Some Friday defense and security links:

The Wall Street Journal reports that the Pentagon is conducting a “sweeping overhaul” of its war plans in the Pacific and Middle East theaters, diminishing the role large ground forces play in these plans. “Plans that had presumed the availability of large U.S. forces for invasions and occupations are being redrafted to incorporate strategies such as quick-reaction ground units, air power and Navy ships,” the report said. Cyber will also be a big aspect of the new plans.

Which? Tracker shows surge in optimism

The sun has been shining, a Prince has been born and consumers are feeling more positive about the economy.

For the first time since Which? launched our Consumer Insight Tracker in July 2012, more consumers now think that the UK economy will get better in the next 12 months compared to those who think it will get worse.

Consulates and the Vatican in chaos as HSBC tells them to find another bank

Diplomats in London have been thrown into chaos after Britain’s biggest bank, HSBC, sacked them as customers and gave them 60 days to move their accounts.

Their situation has been made far worse because other banks have been closing ranks and refusing to take their business.

More than 40 embassies, consulates and High Commissions have been affected. Even the Vatican has been given its marching orders.

The Breakdown of the BRICs

Is the decade-long BRIC dream over?

Bloomberg reports that capital flight from Brazil, Russia, India, and China has sent their bonds, currencies, and stocks down together for the first time since 2006.

Japan Finally Admits The Truth: "Right Now, We Have An Emergency At Fukushima"

Tepco is struggling to contain the highly radioactive water that is seeping into the ocean near Fukushima. The head of Japan's NRA, Shinji Kinjo exclaimed, "right now, we have an emergency," as he noted the contaminated groundwater has breached an underground barrier and is rising toward the surface - exceeding the limits of radioactive discharge. In a rather outspoken comment for the typically stoic Japanese, Kinjo said Tepco's "sense of crisis was weak," adding that "this is why you can't just leave it up to Tepco alone" to grapple with the ongoing disaster. As Reuters notes, Tepco has been accused of covering up shortcomings and has been lambasted for its ineptness in the response and while the company says it is taking actions to contain the leaks, Kinjo fears if the water reaches the surface "it would flow extremely fast," with some suggesting as little as three weeks until this critical point.

Fed Should Reverse Commodity Policy, CFTC’s Chilton Says

The Federal Reserve should reverse a decade-old ruling that lets banks trade physical commodities, Commodity Futures Trading Commission member Bart Chilton said.

“I don’t want a bank owning an electric service, or cotton, corn or feedlots,” Chilton, a Democrat, said in remarks prepared for delivery today at a conference of U.S. cotton growers in Lake Tahoe, California. “I don’t want banks owning warehouses, whether they have aluminum, gold, silver or anything else in them.” The Fed “can and should reverse” the policy, he said.

China offers next step in removing dollar from reserve currency status

On Aug. 5, an official from the People's Bank of China (PBoC), published an article in a leading Chinese market journal suggesting that now would be a good time to convene a new 'Bretton Woods' conference with the intention of creating and implementing a new gold backed reserve currency to replace the dying dollar.

“Yao Yudong of the PBoC's monetary policy committee has called for a new Bretton Woods system to strengthen the management of global liquidity. In an article in the China Securities Journal, Yao called for more power to the IMF as international cooperation and supervision are needed. – Zerohedge”

Did China Just Fire The First Salvo Towards A New Gold Standard?

In a somewhat shockingly blunt comment from the mouthpiece of Chinese officialdom, Yao Yudong of the PBoC's monetary policy committee has called for a new Bretton Woods system to strengthen the management of global liquidity. In an article in the China Securities Journal, Yao called for more power to the IMF as international copperation and supervision are needed. While comments seem somewhat barbed towards the rest of the world's currency devaluers, given China's growing physical gold demand and the fixed-exchange-rate peg that 'Bretton Woods' represents, and contrary to prevailing misconceptions that the SDR may be the currency of the future, China just may opt to have its own hard asset backed optionality for the future; suggesting the new 'bancor'would be the barbarous relic (or perhaps worse for the US, the Renminbi). Of course, thewriting has been on the wall for China's push to end the dollar reserve supremacy for over two years as we have dutifully noted - since no 'world reserve currency' lasts forever.

Greenwald claims up to 20,000 Snowden documents are in his possession

The journalist involved in the publication of leaks provided by whistleblower Edward Snowden said in a testimony to the Brazilian government that he possesses up to 20,000 secret US government files.

Glenn Greenwald testified before a Brazilian Senate foreign relations committee on Tuesday. The Brazil-based American reporter – who was approached by Snowden while the whistleblower still worked as a contractor for the NSA - has published details of US electronic surveillance programs taking place domestically and abroad.

Big Banks Conspiracy is destroying America

SAN LUIS OBISPO, Calif. (MarketWatch) — Imagine 100 Goldman Sachs banks running America and the world. It’s happening. Forget politicians, Big Banks rule the world.

It was just a few years ago in “The Great American Bubble Machine,” a Rolling Stone feature, that Goldman was indicted by Matt Taibbi: “The first thing you need to know about Goldman Sachs is that it’s everywhere. The world’s most powerful investment bank is a great vampire squid wrapped around the face of humanity, relentlessly jamming its blood funnel into anything that smells like money.”

'Havoc' as HSBC prepares to close diplomatic accounts

HSBC bank has reportedly asked more than 40 diplomatic missions to close their accounts as part of a programme to reduce business risks.

The Vatican's ambassadorial office in Britain, the Apostolic Nunciature, is among those said to be affected.

Wall Street's big SAC Capital problem

The head of the UK's Consular Corps told the Mail on Sunday the decision has created "havoc".

El-Erian Warns "Don't Be Fooled" By Europe's Tranquility

August is traditionally Europe’s holiday month, with many government officials taking several weeks off. In the process, important initiatives are put on hold until the “great return” at the beginning of September.

This year, there is another reason why Europe has pressed the pause button for August. With a looming election in Germany, few wish to undermine Chancellor Angela Merkel’s likely victory. After all, Germany is central to Europe’s well-being, and Merkel’s steady hand has allowed the continent to overcome a series of challenges over the last few years. As a result, many are eager to postpone any controversial policy decisions rather than rock the German political boat.

Drone strikes kill militants in Yemen; Americans urged to leave

(CNN) -- A pair of suspected U.S. drone strikes killed four al Qaeda militants in Yemen as the United States maintained a heightened security alert in the country and urged all Americans to leave immediately.

Security sources told CNN about the strikes but didn't offer additional details. A Yemeni official said four drone strikes have been carried out in the past 10 days.

Courtesy - Emann Charts (EconMatters author archive here) 

The views and opinions expressed herein are the author's own, and do not necessarily reflect those of EconMatters.

© EconMatters All Rights Reserved | Facebook | Twitter | Post Alert | Kindle

Show more