Monthly Archives: January 2016

Highway bill revives the Export-Import Bank after only five months

"A measure extending the bank through 2019 was included in a massive transportation bill that cleared the House and Senate Thursday and is expected to be signed by President Barack Obama. The small federal agency makes and guarantees loans to help foreign customers buy U.S. exports. Business groups like the U.S. Chamber of Commerce say it's necessary for U.S. competitiveness, since most overseas competitors rely on similar government help. But conservatives decry the bank as corporate welfare and government interference in the free market. A rarely used procedure in the House forced a floor vote on the bank over the objections of top GOP leaders." Continue reading →

Continue ReadingHighway bill revives the Export-Import Bank after only five months

Norway’s Biggest Bank Demands Cash Ban

rivacy advocates in Norway have expressed worries for years that, without cash, there would be no way for an individual to purchase something without being tracked. In 2014, Finans Norge, a financial industry organization in Norway, said the country was on pace to be a cashless society by 2020, Ice News reported. While DNB said its proposal will take time to complete, executives suggested the country start phasing out cash by discontinuing the 1,000 kroner note so it could focus on updating its banking system. Continue reading →

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Alaska “Right to Try” Bill would Nullify in Practice Some FDA Restrictions on Terminal Patients

JUNEAU, Alaska – (Jan. 25, 2015) – An Alaska bill introduced earlier this month would set the foundation to nullify in practice some Food and Drug Administration (FDA) rules that deny access to experimental treatments by terminally ill patients. Introduced by Rep. Scott Kawasaki on Jan. 8, House Bill 215 (HB215) would give terminally ill…

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Gold Is Back in Fashion After a $15 Trillion Global Selloff

"The $15 trillion rout in global equity markets since May is reawakening the lure of gold for investors seeking safety. Hedge funds more than doubled their net-long position in bullion last week, just three weeks after they were the most-bearish ever. Investor holdings of gold through exchange-traded products are expanding at the fastest pace in a year, and the value of the ETPs has jumped by $3 billion in 2016. Fed Bank of Boston President Eric Rosengren said this month that the central bank’s projected path for more policy tightening is at risk, citing falling estimates for U.S. economic growth. Gold reached a five-year low in December as the dollar strengthened and U.S. inflation stayed stagnant." Continue reading →

Continue ReadingGold Is Back in Fashion After a $15 Trillion Global Selloff

Audit the Fed Legislation Sinks: Plan Accordingly

"Rand Paul and Ron Paul, the dynamic duo of anti-Fed forces, invested a lot of time and money trying to get that legislation passed. But even if it reached Barack Obama's desk, it would have been vetoed. Of course, the Fed pushed back against the legislation. Fed Chairman Janet Yellen penned a letter to senators before the vote claiming that the legislation would deprive the Fed of necessary independence. She also noted that passing the legislation might generate an inflation scare and cause interest rates to rise. One wonders if this was a subdued threat." Continue reading →

Continue ReadingAudit the Fed Legislation Sinks: Plan Accordingly

Iran to be hooked up to global banks in weeks; U.S. investors still banned

"A nuclear deal between world powers and Iran led to the removal of the curbs on Tehran's banking, insurance and shipping sectors last weekend, as well as restrictions on oil exports. But for Iran to resume business with the global banking world - for the first time since 2012 - its banks need to be linked to overseas lenders on SWIFT. The system is used to transmit payments and letters of credit. Many international sanctions relating to Iran's nuclear program were lifted but most involving U.S. measures remain in place. Non-U.S. banks may trade with Iran without fear of punishment in the United States but U.S. banks may not do so, directly or indirectly." Continue reading →

Continue ReadingIran to be hooked up to global banks in weeks; U.S. investors still banned

U.S. bailout places ‘Puerto Rico’s democracy at risk’

"The U.S. Senate is considering a bill called the Puerto Rico Assistance Act of 2015. It offers minor assistance: a temporary reduction in payroll taxes and a 'development fund' of $3 billion. But the real purpose of this bill is the installation of a six-member Financial Control Authority. That authority, if it gets the chance, will rule over Puerto Rico. Completely. What this legislation contemplates is beyond extraordinary; it is essentially the destruction of whatever semblance of genuine democracy currently rules the island. According to the bill, five members will be appointed by the U.S. President. The sixth will be the Secretary of the U.S. Treasury, who will also serve as Chairman." Continue reading →

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Only in Argentina: Where Minus 3% Bond Yields Are All the Rage [2015]

"While the bonds yield minus 3.1 percent, it’s a small price to pay in a country where capital controls have caused multiple black-market exchange rates to proliferate and rampant inflation has eroded the value of peso deposits. Foreign companies, prevented from repatriating dividends because of the controls, are also buying the securities as a hedge against a potential devaluation, which has become more likely as trading partners from Brazil to China weaken their own currencies, said Eduardo Levy-Yeyati, director of economic consultant Elypsis. The government sold the equivalent of $1.1 billion of dollar-linked bonds due in 2017 on Tuesday, the first such sale in nine months." Continue reading →

Continue ReadingOnly in Argentina: Where Minus 3% Bond Yields Are All the Rage [2015]

After QE failure, BOJ’s Kuroda says no plan to ease policy now

"Bank of Japan Governor Haruhiko Kuroda said on Friday he had no plan to expand monetary stimulus now, blaming sharp declines in oil costs for keeping consumer inflation distant from the bank's ambitious 2 percent target. While he maintained his optimistic view of the economy, Kuroda stressed his resolve to ease monetary policy further if risks threaten achievement of the BOJ's price target. The remarks, made in response to a question by an opposition lawmaker, pushed down Japanese stocks on disappointment that no immediate monetary stimulus was forthcoming." Continue reading →

Continue ReadingAfter QE failure, BOJ’s Kuroda says no plan to ease policy now

Saudi Arabia’s Secret Holdings of U.S. Debt Are Suddenly a Big Deal

"That question -- unanswered since the 1970s, under an unusual blackout by the U.S. Treasury Department -- has come to the fore as Saudi Arabia is pressured by plunging oil prices and costly wars in the Middle East. As a matter of policy, the Treasury has never disclosed the holdings of Saudi Arabia, long a key ally in the volatile Middle East, and instead groups it with 14 other mostly OPEC nations including Kuwait, the United Arab Emirates and Nigeria. Apart from the kingdom itself, only a handful of Treasury officials, and those at the Federal Reserve who compile the data on their behalf, have a clear picture of Saudi Arabia’s U.S. debt holdings and whether they’re rising or falling." Continue reading →

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