News — china

Morgan Stanley’s Market Bear Forecasts a Grim 2019

Posted by Metals Corporate on

By Bryan Ellis The man widely considered to be “Wall Street’s most bearish analyst” says 2019 is shaping up just as he predicted, and that means big risks for investors in the markets. Morgan Stanley chief investment officer Mike Wilson recently described the U.S. economy as “running on fumes,” despite recent upward surges in the stock market. “The macro and microeconomic data continue to deteriorate,” Wilson wrote, citing soft jobs numbers, soft retail earnings, and overall soft metrics. He added investors counting on the Fed to lower interest rates and keep the economic cycle spiraling upward are making a mistake....

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Chinese Sale of U.S. Treasury Bonds Indicates Commitment to Trade Conflict

Posted by Metals Corporate on

China has been selling off U.S. Treasury bonds for several years now, causing a vague unease among many U.S. investors. With a trade conflict between the two countries well under way, China’s reduction of its bonds by about 4 percent in 2018 and its ongoing sale of the bonds in 2019 has many “talking heads” talking about a trade-war “nuclear option” for China: dumping its U.S. Treasury debts. “This is really the biggest weapon they have,” said Loyola Marymount economics professor Sung Won Sohn in a recent interview on CNBC. “If push comes to shove, that is what they are...

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Rare Metal Prices Surge in Anticipation of Chinese Trade Ban

Posted by Metals Corporate on

Saber rattling between the United States and China over trade policies is creating a surge in rare metal values. If the standoff continues, investors in rare and precious metals could see skyrocketing portfolio values both near- and long-term. At the end of May, Beijing warned it has a plan in place to restrict the exports of “rare earths” to the United States. Rare earths are metals used in the manufacture of many electronic devices, cars, and, perhaps most importantly, magnets. China provides about 95 percent of all rare earths in global trade, and Chinese exports of these metals account for...

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Is There A Little-Known "X-Date" For The Dollar Debt Bomb?

Posted by Dirk Watters on

China is expected to launch its first yuan-denominated oil contracts next month, and that will mark the beginning "X-Date" for the dollar kill switch. Summary: The US dollar enjoys a special privilege in the world due to its dominance in the global oil trade. The agreement that created this dominance was predicated on the United States being the largest oil importer in the world, which is no longer the case. China is rolling out a new gold-backed yuan oil contract next month as part of its attempt to replace the US dollar's dominance. If the dollar loses its privileged status,...

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Did The FED Rig The Financial Markets?

Posted by Dirk Watters on

For many decades, the Federal Reserve has rigged the bond market by its purchases of mortgage backed securities. And for about a century, central banks have set interest rates (mainly to stabilize their currency's exchange rate) with collateral effects on securities prices. It appears that in May 2010, August 2015, January/February 2016, and currently in February 2018 the Fed is rigging the stock market by purchasing S&P equity index futures in order to arrest stock market declines driven by fundamentals, and to push prices back up in keeping with a decade of money creation. No one should find this a...

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