AUG 25 SIT EC y POL
REUTERS
By SHANGHAI/BEIJING | BY SAMUEL
SHEN AND KOH GUI QING. Tue Aug 25, 2015
China's central bank cut interest rates and lowered the
amount of reserves banks must hold for the second time in two months on
Tuesday, ratcheting up support for a stuttering economy and a plunging stock
market that has sent shockwaves around the globe.
The People's Bank of China (PBOC) said it was cutting the one-year benchmark bank lending rate
by 25 basis points to 4.6 percent, cutting one-year benchmark deposit rates by
the same amount, and reducing reserve requirements (RRR) by 50 basis points to 18 percent for most big banks. Major
Chinese stock indexes nosedived more than 7 percent on Tuesday, hitting their
lowest levels since December, following a more than 8 percent plunge on Monday.
SEE ALSO: Wall St. suffers worst day in four years, S&P confirms correction (Reuters)
by noel
randewich
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Chinese Stocks Crash Again to Extend Biggest Plunge Since
1996
By Bloomberg News. Updated on August 25
Chinese shares plummeted to extend the steepest four-day
rout since 1996 on concern the government is abandoning market support measures.
[ So what.. no one in
the right mind is expecting a China’ QE to feed the crook with bailouts.
Their correction of the market has an
aim: a solid future for ALL their NATION. I hope they get it ]
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ZERO HEDGE
Devaluation
Stunner: China Has Dumped $100 Billion In Treasurys In The Past Two Weeks.
Submitted by Tyler Durden on 08/25/2015
... in the past two weeks alone China has sold a
gargantuan $106 (and over) billion in US paper just as a result of the change
in the currency regime!
… [this logig continues] …
Should the current pace of liquidity outflows continue, and
require the dumping of $100 billion in FX reserves, read US Treasurys, every
two weeks this means China has, oh, call it some 18 weeks of intervention left.
What happens when China liquidates all of its Treasury
holdings is anyone's guess, and an even better question is will anyone else
decide to join China as its sells US Treasurys at a never before seen pace, and
best of all: will the Fed just sit there and watch as the biggest offshore
holder of US Treasurys liquidates its entire inventory..[there is a “hidden tone” of anti-China
xenophobia in such expression ]
[ In the past two weeks happens the unprecedented illegal
intervention of our crook speculators inside the Chinese market .. that was
very illegal and forced the currency regime change we are on, a change that any
sovereign country has the right to do it.
.. Now, what happens if China
liquidates all of its Treasury holdings?.. There are Laws on this regard and
once a Treasury holding is due China has the right of selling them to whoever
wanted to buy it & at the price they decide to .. nothing illegal on this
matter .. especially given the circumstances of crisis they are facing now. .. On
the other hand, the IMF already announced a “new dollar” before talking on the
SDR basket that excluded the yuan.. in this clime of uncertainty the less China
can do is just sell the US Treasury holdings. .. All debts has to be paid, is
the law in America, if not.. “is anyone’s guess”. ]
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China
Devalues Yuan To Fresh 4-Year Lows, Arrests Top Securities Firm Exec As Stocks
Slide Despite Rate Cuts. Submitted by Tyler
Durden on 08/25/2015
[How China put on their pants is not our business]
Update: Chinese Police arrested managing director
Xu Gang of China's No.1 brokerage CITIC Securities
The Asia morning begins mixed in stock markets,
The PBOC explains itself "this is not a shift in
monetary policy," - except it is the first such set of
measures since 2008, further deleveraging as China margin debt
drops CNY1 Trillion from June peak to lowest since March, Regulators
begin probing securities firms (and their malicious short
sellers), Index futures trading fees will be raised and trading
positions restricted. Stocks are limping only modestly higher (after the
rate cuts) as Yuan is fixed at 6.4043 - the lowest since August 2011.
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Saudi
Arabia Paying American Lobbyists To Spread Anti-Iran Propaganda. Submitted
by Tyler Durden on 08/25/2015 [ I can’t believe it
.. my angels Hillary & OB on it?.. that cannot be true ]
Though the Saudi Arabian government publiclydeclared
its tentative support for the widely-praised Iran nuclear deal last
month, newreports reveal
it is secretly funding propaganda efforts to undermine it. A new group called
the American Security Initiative has spent over $6 million on advertisements
criticizing the deal — using money supplied by the Saudi monarchy.
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Well... Maybe it was the
US economy all along?
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1929
And Its Aftermath - A Contra-Keynesian View Of What Really Happened. Submitted by Tyler Durden on 08/25/2015
A half-century ago, America - and then the world - was
rocked by a mighty stock-market crash that soon turned into the steepest and
longest-lasting depression of all time. Those who ignore the lessons
of history are doomed to repeat it - except that now, with gold abandoned and
each nation able to print currency ad lib, we are likely to wind up,
not with a repeat of 1929, but with something far worse...
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So
This Is Why The "Smart Money" Was Selling The Most Stocks In History.
Submitted by Tyler Durden on 08/25/2015
Following the biggest (and only) market correction in years,
the biggest weekly surge in the VIX ever, the second wholesale market flash
crash in history coupled with the first ever limit down trade in the Nasdaq and
the E-Mini, not to mention the biggest intraday bearish reversal since Lehman,
it would appear that the "smart money" actually was aptly named.
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Cutting
Through The HFT Lies: What Really Happened During The Flash Crash Of August 24,
2015. Submitted by Tyler
Durden on 08/25/2015 [ So nothing happens .. pure manipulated panic? .. just a virtu
of our hedge & mutual funds of our un-bitten neoliberal system ? ]
One of the fallacies being propagated about yesterday's
flash crash, is that somehow HFTs came riding in as noble white knights and
rescued the market from a collapse instead of actually causing it. This
particular lie is worth a few quick observations and explanations of what really happened.
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Trump
Top But Sanders Surges As Hillary 'Hope' Hammered In New Hampshire. Submitted
by Tyler Durden on 08/25/2015
A stunning 78% of Democrats in New Hampshire view
Bernie Sanders favorably in the latest polls. As
The Hill reports, Hillary Clinton was viewed favorably by that
percentage in April, but that has dropped 15 percentage points among Democrats.
With Sanders
topping Clinton by a 44 to 37 percent margin (VP Joe Biden garnered 9%),
and Trump support among Republicans at 35%, it appears serial lying
is not paying off for the Oligarchy (for now)...
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Everyone
Has A Plan Until.... Submitted by Tyler
Durden on 08/25/2015
Every Federal Reserve Chair since 1979 has faced a
notable challenge in the first 12-20 months of their tenure – something akin to
capital markets “Bullies” hazing the new kid at school. Paul Volcker
had the 1979-1980 Iranian oil shock/recession, Alan Greenspan the 1987 Stock
Market Crash, and Ben Bernanke the 2007 Financial Crisis. Their responses
shaped market perceptions about Federal Reserve priorities and set the stage
for the remainder of their tenures, from Inflation-Fighting Volcker to
Save-the-World Bernanke. Now, it is Chair Yellen’s turn
[ Other QE is the
road to precipice .. get a Holland’ caw ]
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If the last two weeks have taught us anything at all (other
than that a Reg FD violation is called a "scoop" when it involves Jim
Cramer and Tim Cook), it’s that China quite clearly matters - and it
matters quite a lot.
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With EM in turmoil from Brazil to Malaysia, Bloomberg has
mapped the carnage, showing just how many EM equity markets are in or closing
in on bear market territory.
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Global
Markets To Fed: No Rate Hike, The Strong Dollar Is Killing Us. S- by Tyler
Durden on 08/25/2015
Global markets are puking at the prospect of higher
yields in the U.S. There are many reasons for global markets to
melt down, but one that doesn't get enough attention is the strong dollar. In
effect, global markets are telling the Federal Reserve: don't raise
rates--the strong dollar is killing us.
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While the western mainstream media meme is that "this
is all China's fault" - despite the fact that the real break happened
after the FOMC Minutes last week - Xinhua
reports that China central bank blames wide-spread
expectations of a Fed rate hike in September for the global market rout...
demanding The Fed "remain patient."
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August
24 - A True Market Washout?. Via Dana Lyons' Tumblr,
S- by Tyler
Durden on 08/25/2015
It doesn’t happen too often, but occasionally we witness
a true stock market “washout”.That
is, a selloff marked by extremely one-sided (to the downside) trading action.
Such days are exhibited by market participants that just want out at any
price. The result is a day in which all market statistics are
overwhelming skewed negatively. Such was the case yesterday, August 24. However,
considering the selloff began with the major averages near their 52-week
highs, a resumption in downside pressure would not be a surprise
following whatever type of bounce materializes over the next few days or weeks.
More from
Dana Lyons, JLFMI and My401kPro.
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Following today's latest central bank intervention, this
time in the long overdue Chinese interest rate cut (which will hardly have a
lasting impact on either the economy or stock markets), the S&P correction
may prove to be short lived: S&P is poised to open about 4% higher,
delivering the latest "Bullard" moment to the S&P, this time
courtesy of China. [De Buenos deseos esta sembrado the path to hell ]
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Since 'everything is awesome' once
again, it appears holding 'pet rocks' is no
longer of any use... Gold futures have been hammered below their
50-day moving-average this morning as the USD rises...
[ with the USD up.. who is going
to buy our .. what? .. weapons? .. our clients will get it cheaper .. and our
delighted business .. wars.. will be expensive.
Who is going to pay that? .. our nation? … ]
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Richmond
Fed Manufacturing Collapses To 2015 Lows, Drops Most In 9 Years. Submitted by Tyler
Durden on 08/25/2015
The 3-month bounce
in the Richmond Fed Manufacturing survey... is dead. From 13 in July,
August saw it collapse to 0 (massivley missing expectations of a 10 print).
This is the biggest absolute drop in the index since May 2006. Across the
board, underlying factors crashed with Shipments plunging, New Orders
cliff-diving, order backlogs disappearing and Capacity Utilization
plunging. This is exactly what we would expect after a massive inventory
build up that was not accompanied by a surge in sales... but the
pundits stil proclaim "no signs of an imminent
US recession."
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US
Consumer Confidence Is Both The Highest & Lowest In 2015 Depending On Who
You Ask. Submitted by Tyler
Durden on 08/25/2015
GALLUP said is going down .. but
the “Conference Board” have ‘confidence’ . See graphs
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Stocks remain green but the pre-open surge on the back of a
China rate cut has been erased as USDJPY rolls over...
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NYSE
Invokes Rule 48 For Second Day In A Row Ahead Of Market Open. Submitted
by Tyler Durden on 08/25/2015
Precisely 24 hours ago, in an attempt to pre-empt the
panic-selling open, the NYSE invoked
the little used Rule 48, which was to be expected: the Nasdaq 100 has
just tumbled limit down and the S&P and DJIA would follow shortly. Today,
however, it is unclear .. what this means is that mandatory opening
indications are not required, which in theory should make it easier to open
stocks.
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"I have a
gut feel the recent wild swings are a precursor of a more insidious
trend... which is definitely not going to be our friend!"
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If yesterday's
liquidity was bad enough to precipitate the biggest wholesale market flash
crash, including the historic, first-ever "limit down" triggers for
all major index futures, then be very careful what you do today because as of
this moment E-mini liquidity is even worse than it was yesterday, not to
mention at any other point in the past month, at this time of the day.
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China
Rate Cut Euphoria. Is Fading Fast - US Equity Futures Halve Post-PBOC Gains. Submitted by Tyler
Durden on 08/25/2015. See graphic
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Why
Did China Just Cut Rates, Again: Here Are Goldman's Three Reasons. Submitted by Tyler Durden on 08/25/2015
Goldman's 3 key
reasons for China's "surprise" rate cut: i) Activity growth
weakened meaningfully after a brief rebound in 2Q; ii) Outflows
re-emerged and drained liquidity; iii) Equity market has been
falling very rapidly. The conclusion: "These cuts are
positive moves which are much needed to support the economy and market. But
they are unlikely to be sufficient by themselves."
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With
Stocks In Free Fall, China Ditches Plunge Protection For Desperation Rate Cuts. Submitted by Tyler
Durden on 08/25/2015
The dual policy rate
cut is a desperate attempt to i) free up liquidity, and ii) shore up confidence
in the stock market. We suspect the effects may be short lived on both accounts
because after all, aggressive easing only fuels further depreciation
necessitating further liquidity-sapping FX interventions in a vicious loop, and
loose monetary policy likely won’t be much comfort to China’s 90 million retail
investors who now, more than ever before, are virtually guaranteed to sell any
rip they can get in a desperate attempt to claw back their life savings which
they naively poured into stocks back in April and May.
[ 1st: This argument carries a contradiction
(aggressive easing only fuels further depreciation necessitating further
liquidity) that make it invalid. 2nd . China didn’t create the US
problems with their neoliberal system .. and China is not intending to solve
it. What they are doing is the right thing .. even the big sharks here accept
it: Goldman .. Besides IMF ]
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Submitted by Tyler
Durden on 08/25/2015 - 07:33
- China’s Central Bank Cuts Interest
Rates (WSJ)
- Chinese Stocks Crash Again to Extend
Biggest Plunge Since 1996 (BBG)
- China cuts rates, reserve ratio to aid
economy as stocks sink (Reuters)
- Wall St. suffers worst day in four
years, S&P confirms correction (Reuters)
- Europe's Stocks Head for Best Day
Since 2011 ((BBG)
- Market turmoil clouds Fed rate outlook
(FT)
- For All Its Heft, China’s Economy Is a
Black Box (WSJ)
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- CHINA
PBOC CUTS INTEREST RATES
- CHINA
PBOC CUTS REQUIRED DEPOSIT RESERVE RATIO
- CHINA
PBOC CUTS 1Y DEPOSIT RATE BY 25 BPS
- CHINA
PBOC CUTS 1Y LENDING RATE BY 25 BPS
- CHINA
PBOC CUTS BANKS DEPOSIT RESERVE RATIO BY 50 BPS
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GLOBAL RESEARCH
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INFORMATION CLEARING HOUSE
The Iran Agreement and Israel’s Claim to
Speak for the Jews. By Lawrence Davidson
No, Mr Netanyahu. You
do not speak for me. Jews are quite diverse in their views and a
growing number of them are not supporters of Israel or its practices
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The enemy is fear. We
think it is hate. But it is fear. Gandhi . We
are living in a (western) world dominated by neoliberal dictators, criminals
and crooks
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You can see the game that’s being played here. Mom and Pop
investors are getting fleeced again
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“Don’t Owe.
Won’t Pay.” . Everything You’ve Been Told About Debt Is Wrong. By Charles
Eisenstein
With the nation’s household debt burden at $11.85 trillion, even the most modest challenges to its legitimacy have revolutionary implications
With the nation’s household debt burden at $11.85 trillion, even the most modest challenges to its legitimacy have revolutionary implications
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NEWS IN SPANISH
Alai-AmLatina. AMERICA LATINA: DONDE ESTAMOS?. Por Oscar Ugarteche
Reflexiones
a partir de la carta de Álvaro García Linera
Alai-AmLatina
<alai-amlatina@alai.info>; Servicio Informativo "Alai-amlatina”
La
anunciadísima desaceleración económica del 2014-15 ha llegado con los
previsibles signos de malestar social en toda América latina. La mala noticia
es que, como sabíamos, los precios de las materias primas pasaron por un ciclo
que esta vez estuvo muy amañado por el sector financiero que hizo que subiera a
niveles record para luego caer como piedra. Las multas de esto suman 300,000
millones de dólares en los dos últimos años, por las intervenciones criminales
de 9 bancos entre el 2008 y 2012. Toda la teoría del crecimiento exportador se
acaba de ir a la basura junto con todo el aparato político de que los TLC
serían la salida al estancamiento de los años 80 y 90. También se fue a la
basura el discurso de que los tipos de cambio estaban blindados por el altísimo
nivel de reservas internacionales. [Siga leyendo: … ]
Mas información: http://alainet.org
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Ecuador. "Correa no es un
marciano, al igual que Chávez o Evo. Son hijos de una sublevación histórica que
ha hecho eco en el mundo entero". Salvador López Arnal
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Europa. Alexis Tsipras: el transformismo
como instrumento para derrotar al sujeto popular.Manolo
Monereo
[ Es Tsipras Socialista o
NO? Los socialistas no siguen las consignas del Partido .. siguen lo que decide
el pueblo y sus referéndums … Lo veremos cuando se de la consulta popular?. I que
si el pueblo quiere sufrir con austeridad la cárcel de UE .. De ser asi es
porque no ven alternativa o mejor cárcel .. Es decir: No hubo liderazgo
socialista que les cambie esa falsa conciencia?.. Si el trabajo ideológico es
lo que define a un socialista .. TSIPRAS NO LO FUE. Su victoria o derrota en la
nueva consulta popular NO ES NI SERA la derrota ni victoria del socialismo ..
es la derrota/victoria de un impostor. ]
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EE.UU.
-"Sanders for President". Un fenómeno político que contradice ideas
preconcebidas en EE UU. Dan La Botz
[ Bien lo dice la autora de este Art: Sanders es la
expresión política del movimiento Occupy. Es por tanto la voz de los de abajo.
No es solo un candidato del Partido Demócrata, es mucho mas que eso. Nosotros los Latinos y muchos negros lo apoyamos. En general.. toda la
izquierda blanca lo apoya .. desde Richard Wolff .. hasta Noam Chomsky ..
pasando por muchos otros. .. El problema es que aun asi .. no tendría la fuerza
para derrotar el poder del dinero, el de la mafias aristocráticas de los Clinton-Bush
y el payaso adinerado D.Trump ..
Se requiere por tanto crear un FRENTE POPULAR
y se me ocurre que la única forma de UNIDAD posible es unir al liberal republicano -que tampoco es solo republicano- es mucho mas que eso pues representa lo mejor de la juventud republicana, me refiero a Rand Paul, el hijo de Ron Paul. SI
SANDERS-PAUL se unen y lideran el FRENTE POPULAR por la reconstruc de America .. si se
puede vencer el poder de las mafias aristocráticas. ..
Como
hacer para ponerlos juntos? .. Que sean Chomsky, Wolff
y otros connotados académicos quienes organizen y llamen eventos de Unidad con una
plataforma breve que resuma los puntos similares -no las diferencias- y de forma clara a fin de capturar la juventud y a las clases trabajadoras ..
Urge crear una 3ra alternativa (the third choice) para que exista democracia en este pais y representación
proporcional de la minorías en todas las instancias del Federal y los Estados
de la Nacion . Si esos notables academicos e intelectuales del pais no hacen nada por crear una democracia realmente existente en el este pais.. PARA QUE SIRVEN? ]
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RT & SHOWS
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INTERVIEW to Richard
Wolff by Thom Harmann
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