imc indymedia

Los Angeles Indymedia : Activist News

white themeblack themered themetheme help
About Us Contact Us Calendar Publish RSS
Features
latest news
best of news
syndication
commentary


KILLRADIO

VozMob

ABCF LA

A-Infos Radio

Indymedia On Air

Dope-X-Resistance-LA List

LAAMN List




IMC Network:

Original Cities

www.indymedia.org africa: ambazonia canarias estrecho / madiaq kenya nigeria south africa canada: hamilton london, ontario maritimes montreal ontario ottawa quebec thunder bay vancouver victoria windsor winnipeg east asia: burma jakarta japan korea manila qc europe: abruzzo alacant andorra antwerpen armenia athens austria barcelona belarus belgium belgrade bristol brussels bulgaria calabria croatia cyprus emilia-romagna estrecho / madiaq euskal herria galiza germany grenoble hungary ireland istanbul italy la plana liege liguria lille linksunten lombardia london madrid malta marseille nantes napoli netherlands nice northern england norway oost-vlaanderen paris/Île-de-france patras piemonte poland portugal roma romania russia saint-petersburg scotland sverige switzerland thessaloniki torun toscana toulouse ukraine united kingdom valencia latin america: argentina bolivia chiapas chile chile sur cmi brasil colombia ecuador mexico peru puerto rico qollasuyu rosario santiago tijuana uruguay valparaiso venezuela venezuela oceania: adelaide aotearoa brisbane burma darwin jakarta manila melbourne perth qc sydney south asia: india mumbai united states: arizona arkansas asheville atlanta austin baltimore big muddy binghamton boston buffalo charlottesville chicago cleveland colorado columbus dc hawaii houston hudson mohawk kansas city la madison maine miami michigan milwaukee minneapolis/st. paul new hampshire new jersey new mexico new orleans north carolina north texas nyc oklahoma philadelphia pittsburgh portland richmond rochester rogue valley saint louis san diego san francisco san francisco bay area santa barbara santa cruz, ca sarasota seattle tampa bay tennessee urbana-champaign vermont western mass worcester west asia: armenia beirut israel palestine process: fbi/legal updates mailing lists process & imc docs tech volunteer projects: print radio satellite tv video regions: oceania united states topics: biotech

Surviving Cities

www.indymedia.org africa: canada: quebec east asia: japan europe: athens barcelona belgium bristol brussels cyprus germany grenoble ireland istanbul lille linksunten nantes netherlands norway portugal united kingdom latin america: argentina cmi brasil rosario oceania: aotearoa united states: austin big muddy binghamton boston chicago columbus la michigan nyc portland rochester saint louis san diego san francisco bay area santa cruz, ca tennessee urbana-champaign worcester west asia: palestine process: fbi/legal updates process & imc docs projects: radio satellite tv
printable version - js reader version - view hidden posts - tags and related articles

New Geo;olitical/Financial Bombshells

by Stephen Lendman Friday, Jan. 16, 2015 at 5:15 AM
lendmanstephen@sbcglobal.net

geopolitics

New Geopolitical/Financial Bombshells

by Stephen Lendman

January began with a bang. Oil and other key commodity prices keep heading south. Suggesting economic weakness.

The Baltic Dry Index (BDI) provides "an assessment of the price of moving major raw materials by sea. Measuring demand for shipping capacity v. the supply of bulk carriers."

Demand depends on amounts of cargo being shipped. Less demand, lower the index. From Thanksgiving to December 19, BDI fell 40%.

Zero Hedge called it the fastest ever post-Thanksgiving collapse. Declines continued into January. Down to 749 from a one-year 1,621 high. Reflecting economic weakness.

Yesterday, Switzerland's central bank (SNB) stunned markets. Scrapping a three-year euro/franc peg. Sending the Swiss currency soaring against the euro.

Hammering Swiss stocks on fears of harming the nation's export-dependent economy. Especially to Eurozone countries.

Days earlier, SNB officials called the 1.20 euro/franc cap a policy cornerstone. No longer. The Swiss franc spiked 30% before giving back some gains.

Its equity market plunged 8.7%. After being down as much as 14%. Its one-day loss the equivalent of a 1,500 point Dow drop.

The euro fell to .16 to the dollar. An 11-year low. Gold rose an ounce.

Societe Generale currency strategist Kit Juckes said SNB's "move sees a major buyer of the euro leave the building and opens the way for further/faster euro weakness."

"It will trigger further broad-based dollar strength as a result and this in turn has already been reflected in a revival of risk aversion, and increase in market volatility."

SNB pushed its main interest rate further into negative territory. By 50 basis points to - 0.75%.

The Financial Times said "(a)ll Swiss government bill rates and bond yields with maturities up to eight years traded below zero Thursday."

Swiss fixed income investors have to pay for the privilege of owning them.  IFR Markets global strategist Divyang Shah said:

"What the SNB actions show is that policy action seems to be migrating from QE/zero interest rate policy toward negative interest rate policy, as central banks attempt to make holding cash unattractive."

"We are in an environment where markets are still willing to hold safe haven assets, even at a low or negative yield as preservation of capital dominates."

Gold rising to a four-month high is one example. Whether it keeps gaining value remains to be seen. Years of US-led Western market manipulative naked short selling keeps its price suppressed.

US bonds rose. The benchmark 10-year Treasury down 9 basis points to 1.74%. The equivalent maturity German Bund hit a record 0.40% low. Before closing at 0.42%.

The dollar is at a nine-year high. Money and Markets analyst Mike Larson called Thursday unlike anything he previously saw in currency markets.

SNB's move was a complete surprise. Saying one thing days earlier. Doing another. Supposedly to prevent Swiss deflation.

Larson called SNB's policy shift "just the kind of 'shock and awe' move that can change trends in a big way!"

It "puts one stake in" dollar strength, he believes. It shows "(y)ou can't trust central bankers further than you can throw them."

They promise one thing. Renege at their discretion. "(A) destabilizing force" and then some, said Larson.

SNB's move hammered currency traders betting the wrong way. US-based FXCM and New Zealand-based Excel Markets said they "can no longer meet the regulatory minimum capitalization requirements."

Because of "significant" client losses - 5 million for FXCM. Excel Markets said it "will not be able to resume business…Client positions will be closed within the next hour."

Watch for more fallout ahead. Analyst Bruce Krasting said he wrote about SNB abandoning its euro peg twice in December.

Again last Sunday. Still he was "blown away" by SNB's move. Its chairman promised "unlimited" support for the peg.

He "folded on his promise like a cheap suit in the rain. When push came to shove, (he) failed to deliver," said Krasting.

Expect Switzerland to fall rapidly into recession, he added. A 0 billion SNB loss is likely, he believes.

Around 20% of Swiss GDP. Equivalent to a trillion US loss.

Perhaps the worst is yet to come. "There will be reports of big losses and gains from today's events," said Krasting.

"But that is a side show to the real story. We have just witnessed the collapse of a promise by a major central bank."

The Fed, ECB, Bank of England and Bank of Japan made lots of promises. "The entire world" believed in central bank omnipotence.

We now know these emperors have no clothes. "Anyone who continues to believe in the All Powerful CB after (Thursday) is a fool," said Krasting.

ECB's Mario Draghi is next in focus. He promised to "do anything, in any amount" to support markets.

"(Y)ou would have to be a fool to" believe him, said Krasting. The same thing holds for other major central bankers.

"We've just taken a huge leap into chaos. The linchpin of the capital markets has been the trust in the CBs. The market's anchors have now been tossed overboard."

SNB's move was one of two major Thursday surprises. Itar Tass announced the other.

Saying Gazprom henceforth will only supply gas to Europe via Turkey's gas pipeline. A proposed under the Black Sea link. Gas currently delivered via Ukraine.

Gazprom CEO Alexey Miller called the Turkish Stream "the sole route." It can supply 63 billion cubic meters of natural gas.

Affected European countries must now create their own "transport infrastructure from" the Turkish an Greek borders, said Miller.

"They have a maximum of several years for this. This is a very tight schedule," he added.

"To comply with it, work for the construction of new trunk gas pipelines should be started in EU countries right now. Otherwise, these gas volumes may be redirected to other markets."

On December 1, Vladimir Putin announced South Stream gas pipeline plans rescinded. Because of "unconstructive" EU policies, said Tass.

Including Bulgaria halting construction on its territory. Tass cited Putin saying Russia will build a gas pipeline to Turkey. Establishing a "gas hub" on its border with Europe.

Zero Hedge cited Britain's Daily Mail saying Putin ordered cutting supplies to and through Ukraine.

Accusing Kiev's government of stealing Russian gas. Gazprom's move "cut gas exports to Europe by 60% plunging the continent into an energy crisis 'within hours,' " said Zero Hedge.

Ukraine confirmed Russia's cutoff. So did other European countries. Including Bulgaria, Croatia, Greece, Macedonia, Romania and Turkey.

EU officials called Moscow's move "completely unacceptable." Russia's Energy Minister Alexander Novak said "the decision has been made."

According to Ukraine's Naftogaz spokesman Valentin Zemlyansky:

Russia "reduced deliveries to 92 million cubic meters per 24 hours compared to the promised 221 million cubic meters without explanation."

"We do not understand how we will deliver gas to Europe. This means that in a few hours problems with supplies to Europe will begin."

Putin is a world-class geopolitical leader. A master chess player. US-led attempts to isolate Russia aren't working. Nor will they.

His move followed earlier decisions.  Notably trading more in rubles instead of dollars. Establishing stronger than ever Sino/Russian ties.

Ones with other BRICs countries. Other Asian, South American and African ones.

Establishing Russia's own international interbank system by spring 2015. Independent of SWIFT (Society for Worldwide Interbank Financial Telecommunication)."

A financial transactions payment and clearing system. Tass reported Moscow and Beijing discussing a joint SWIFT alternative.

In September, Russian Deputy Prime Minister Igor Shuvalov announced it. Including establishing a joint Sino/Russian ratings agency. Independent from S & P, Moody's and Fitch.

Breaking free from US-controlled IMF/World Bank/other international lending agencies' hegemony is potentially huge if succeeds.

Russia and China both want their currencies replacing dollars in world trade. Increasing de-dollarization strikes at the heart of US unipolarity. Dollar hegemony its linchpin.

The impact of Thursday's bombshells is potentially huge. A likely game-changer. Expect market volatility to replace stability.

Putin no longer supplying gas through Ukraine means affected European countries have to scramble for alternatives.

Call it his revenge. It's high he acknowledges so-called Western partners are adversaries. Especially America. Hell bent to oust him.

European countries foolishly going along with US policies harm their own self-interest. Paul Craig Roberts discussed what's ongoing on Thursday's Progressive Radio News Hour.

On his web site he wrote:

"(I)t sounds like the Russians have had enough of the dumbshits in Washington and (its) dumbshit vassals in Europe."

Perhaps Europeans will have to freeze to death this winter to awaken them to their damn fool policies. At issue is will they change? Don't bet on it.

On Wednesday, Reuters said EU foreign chief Federica Mogherini "suggested EU states could re-engage with Russian on global diplomacy, trade and other issues in return for gradual steps to defuse the crisis over Ukraine."

On the one hand, maintaining sanctions. On the other, continuing to wrongfully blame Russia for Ukrainian crisis conditions as a strategy to get it to accept US-led Western hegemony.

Fact: Washington bears full responsibility for Ukrainian crisis conditions.

Fact: Britain, France, Germany and other EU countries share it.

Fact: Beginning with having orchestrated the ouster of Ukraine's democratically elected government.

Fact: Replacing it with neo-Nazi putschists. Criminals in lieu of legitimate political officials.

Fact: Russia is the only country going all-out to resolve crisis conditions diplomatically.

Fact: Including ending Kiev aggression against its own Donbas citizens.

Mogherini represents Western imperial interests. Anti-Russian ones. Her reengagement notion implies unconditional surrender.

Getting Putin to accept US unipolarity. Abandon Russian sovereignty. Bow to Washington's will. Capitulate to its demands.

Russian sovereign independence is too precious to lose. Sino/Russian unity is hugely important. What Washington fears most.

The most significant force for world peace. Multi-world polarity. Weakening America's imperium.

Maybe eventually ending it altogether. It can't happen a moment too soon.

Stephen Lendman lives in Chicago. He can be reached at lendmanstephen@sbcglobal.net.

His new book as editor and contributor is titled "Flashpoint in Ukraine: US Drive for Hegemony Risks WW III."

http://www.claritypress.com/LendmanIII.html

Visit his blog site at sjlendman.blogspot.com.

Listen to cutting-edge discussions with distinguished guests on the Progressive Radio News Hour on the Progressive Radio Network.

It airs three times weekly: live on Sundays at 1PM Central time plus two prerecorded archived programs.

Report this post as:

Local News

GUIDE TO REBEL CITY LOS ANGELES AVAILABLE A12 5:39PM

lausd whistle blower A10 11:58PM

Website Upgrade A10 3:02AM

Help KCET and UCLA identify 60s-70s Chicano images A04 1:02PM

UCLA Luskin: Casting Youth Justice in a Different Light A02 11:58AM

Change Links April 2018 A01 11:27AM

Nuclear Shutdown News March 2018 M31 6:57PM

Join The Protest Rally in Glendale on April 10, 2018! M29 7:00PM

Join The Protest Rally in Glendale on April 10, 2018! M29 6:38PM

Spring 2018 National Immigrant Solidarity Network News Alert! M19 2:02PM

Anti-Eviction Mapping Project Shows Shocking Eviction Trends in L.A. M16 5:40PM

Steve Mnuchin video at UCLA released M15 12:34AM

Actress and Philanthropist Tanna Frederick Hosts Project Save Our Surf Beach Clean Ups M06 12:10PM

After Being Told He's 'Full of Sh*t' at School Event, Mnuchin Demands UCLA Suppress Video M02 11:44AM

Resolution of the Rent Strike in Boyle Heights M01 6:28PM

What Big Brother Knows About You and What You Can Do About It M01 3:30PM

Step Up As LAPD Chief Charlie Beck Steps Down F14 2:44PM

Our House Grief Support Center Hosts 9th Annual Run For Hope, April 29 F13 12:51PM

Don’t let this LA County Probation Department overhaul proposal sit on the shelf F13 11:04AM

Echo Park Residents Sue LA Over Controversial Development F12 8:51AM

Former Signal Hill police officer pleads guilty in road-rage incident in Irvine F09 10:25PM

Calif. Police Accused of 'Collusion' With Neo-Nazis After Release of Court Documents F09 7:14PM

Center for the Study of Political Graphics exhibit on Police Abuse posters F07 9:50AM

City Agrees to Settle Lawsuit Claiming Pasadena Police Officer Had His Sister Falsely Arre F04 3:17PM

Professor's Study Highlights Health Risks of Urban Oil Drilling F04 12:42PM

Claims paid involving Pasadena Police Department 2014 to present F04 10:52AM

Pasadenans - get your license plate reader records from police F03 11:11PM

LA Times Homicide Report F03 1:57PM

More Local News...

Other/Breaking News

Doxa du lobby A25 2:03AM

Tech workers organize A24 6:24PM

Architect Stephen Francis Jones A24 3:01PM

UN Forum Wrestles with Economic Policies 10 Years After Financial Crisis Islands Call for A24 12:34PM

Xyloglossie attitudinale A23 8:07AM

Shadowgun Legends Hack and Cheats A23 7:24AM

What does the Quran Say About Islamic Dress?? A21 4:15PM

Biodiversité ou la nature privatisée A20 11:22AM

The Market is a Universal Totalitarian Religion A20 7:14AM

Book Available about Hispanics and US Civil War by National Park Service A19 5:52PM

The Shortwave Report 04/20/18 Listen Globally! A19 4:01PM

The Republican 'Prolife' Party Is the Party of War, Execution, and Bear Cub Murder A19 11:48AM

Neurogenèse involutive A18 9:21AM

Paraphysique de la dictature étatique A16 10:13AM

Book Review: "The New Bonapartists" A16 3:45AM

The West Must Take the First Steps to Russia A14 12:25PM

Théorie générale de la révolution ou hommage à feu Mikhaïl Bakounine A14 3:30AM

The Shortwave Report 04/13/18 Listen Globally! A12 3:50PM

“Lost in a Dream” Singing Competition Winner to Be Chosen on April 15 for ,000 Prize! A12 3:48PM

The World Dependent on Central Banks A12 4:43AM

Ohio Governor Race: Dennis Kucinich & Richard Cordray Run Against Mike DeWine A11 9:40PM

March 2018 Honduras Coup Again Update A10 10:52PM

Apologie du zadisme insurrectionnel A10 3:33PM

ICE contract with license plate reader company A10 1:14PM

Palimpseste sisyphéen A09 11:23PM

Black Portraiture(S) IV: The Color of Silence...Cuba No...Cambridge Yes A09 5:32AM

Prohibiting Micro-Second Betting on the Exchanges A09 4:18AM

Prosecutors treat Muslims harsher than non-Muslims for the same crimes A08 10:33PM

More Breaking News...
© 2000-2018 Los Angeles Independent Media Center. Unless otherwise stated by the author, all content is free for non-commercial reuse, reprint, and rebroadcast, on the net and elsewhere. Opinions are those of the contributors and are not necessarily endorsed by the Los Angeles Independent Media Center. Running sf-active v0.9.4 Disclaimer | Privacy