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Friday, December 2, 2016

BACKDOC UPDATE, 2 DEC

BACKDOC:  CHINA HAS BEEN PLAYING DEFENSE FOR SOME TIME NOW AS THEY HAVE BEEN SERIOUSLY MARGINALIZED BY THE EMPIRE, AS I'VE BEEN SHARING FOR SOME TIME!  

THEY HAVE BEEN SELLING U.S. TREASURIES AT A RAPID PACE TO COUNTER BAD LOAN DEBTS AND TO SUPPORT THEIR CURRENCY LOSING GROUND TO THE DOLLAR.  

MANY BUSINESS PEOPLE HAVE BEEN TAKING MONEY OUT OF CHINA AT A TORRID PACE UNTIL NOW CHINA IS CLAMPING DOWN ON MONEY LEAVING THE COUNTRY!   
I BELIEVE THAT THEY ARE AT A CROSSROADS.   THEY WILL HAVE TO RAISE THE VALUE OF THE YUAN TO THE DOLLAR OR THEY WILL BE IN SERIOUS MELTDOWN!  DOC  IMO



Tunderbnderhawk:  PBOC Headache Worsens as New $50,000 Conversion Quota Looms

People’s Bank of China Governor Zhou Xiaochuan already has one policy headache with the currency falling to near an eight-year low. He could have an even bigger one next month.

That’s when a $50,000 cap on how much foreign currency individuals are allowed to convert each year resets, potentially aggravating capital outflow pressures that are already on the rise. If just 1 percent of China’s almost 1.4 billion people max out those limits, that’s an outflow of about $700 billion -- more than the estimated $620 billion that Bloomberg Intelligence estimates indicate has already flowed out in the first 10 months of this year.

Middle class and wealthy Chinese have been converting money into other currencies to protect themselves from devaluation, exacerbating downward pressure on the yuan. Outflows could intensify if Federal Reserve interest-rate hikes fuel further dollar appreciation.

That leaves Zhou in a bind identified by Nobel-prize winning economist Robert Mundell as the “impossible trinity” -- a principle that dictates nations can’t sustain a fixed exchange rate, independent monetary policy, and open capital borders all at the same time.

"At a moment like this, you have to compare two evils and pick the less-worse one," said George Wu, who worked as a PBOC monetary policy official for 12 years. "Capital free flow may have to be abandoned in order to maintain a relatively stable currency rate."

Read More at:  https://www.bloomberg.com/news/articles/2016-12-01/pboc-s-headache-to-worsen-as-new-50-000-conversion-quota-looms  

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BACKDOC:  IF IRAQ DID PASS THE BUDGET TODAY WE KNOW WHY THEY ARE IN A HURRY!  

THERE ARE TRIGGER MECHANISMS EVERYWHERE ON THE GLOBE BUT THE ITALY REFERENDUM IS AMONG THE SCARIEST OF ALL WITH NEAR A TRILLION EURO DEBT THAT IS UNRECOVERABLE!  WOW!
 
THE ACCIDENT ON PURPOSE FOR A PURPOSE MAY SHIFT INTO ANOTHER GEAR ON SUNDAY!  NO WONDER THE IMF IS MEETING EARLIER WITH IRAQ ON THE 5TH!  DOC   IMO

Thunderhawk:  Italy’s referendum casts shadow over banks’ bad loans

Poll on constitutional reform makes it awkward for efforts to tackle lenders’ debts
At a conference on investing in non-performing loans in Milan last week, attendees were asked to vote on whether an Italian government scheme to help sell the debt was the “best way forward”. Just 3 per cent agreed.

The response follows a year of wrangling over proposals to tackle the €360bn of problematic loans plaguing the balance sheets of Italian banks, which have lost half their stock market value this year and stymied Italian prime minister Matteo Renzi’s hopes for a robust recovery in the eurozone’s third-largest economy.

Investors’ scepticism over the government’s so-called “GACs” scheme, which provides a state guarantee on part of the bad loans designed to be packaged up, or securitised, and then sold on, is likely to be deepened by the shadow of Italy’s referendum this Sunday on constitutional reform.

As the public votes on reforms Mr Renzi has staked his future on and argues are required to secure the country’s prosperity, investors’ anxieties on the fallout for the finely balanced plans to fix Italy’s banks range from the existential to the granular.

Read More at :  https://www.ft.com/content/a24a20e2-b711-11e6-961e-a1acd97f622d  

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BACKDOC:  WE CONTINUE TO SEE MAS (The Monetary Authority of Singapore) AS THE GLOBAL POLICEMAN ON FINANCIAL MATTERS!  UNTIL THIS PAST YEAR WHO EVER HEARD OF MAS PUTTING THEIR THUMB ON FINANCIAL CORRUPTION?  

VERY SOON THEY WILL HAVE COMPLETE GLOBAL CONTROL OVER ALL DIGITAL TRANSACTIONS!  THE TRANSITION SEEMS TO ALREADY BE IN PLACE!   DOC   IMO

Thunderhawk:  Singapore slaps penalties on StanChart, Coutts in 1MDB-related probe

Singapore's central bank imposed penalties on the local units of U.K.-based Standard Chartered and private bank Coutts for money laundering breaches related to Malaysia's scandal-tainted 1MDB fund and said it was nearing the end of its probes
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The penalties - of S$5.2 million ($3.65 million) and S$2.4 million, respectively - were the latest punitive measures taken by the central bank in its crackdown on money laundering, having ordered the closure earlier this year of the local units of Swiss banks BSI and Falcon.
The Monetary Authority of Singapore (MAS) is also in the process of issuing a prohibition order against Tim Leissner, Goldman Sachs' former Southeast Asia chairman.

"These actions send a strong signal that we will not tolerate the abuse of Singapore's financial system for illicit purposes," said Ravi Menon, the managing director of MAS.

http://www.reuters.com/article/us-malaysia-scandal-singapore-idUSKBN13R06F--

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