Asia

John Kerry says North Korea conditions for talks ‘unacceptable’

"US Secretary of State John Kerry Thursday dismissed a set of pre-conditions laid out by North Korea for talks as 'unacceptable,' calling them an opening 'gambit' from Pyongyang. The isolated North on Thursday responded for the first time to an offer from Kerry during his weekend visit to the Korean peninsula to return to the negotiating table in a bid to defuse heightened nuclear tensions. The demands by the North’s main military body included the withdrawal of UN sanctions and a permanent end to South Korea-US joint military drills." Continue reading →

Continue ReadingJohn Kerry says North Korea conditions for talks ‘unacceptable’

A Telling Gold Anecdote From Hong Kong

"Went to Hang Seng bullion counter yesterday. The line was out the door. It took an hour wait to see a teller. When I asked if people were buying in the dip or selling in panic, she told me that they haven't had once ounce of gold sold back to them all day. She told me they have sold more gold in 24 hrs than they normally do in 3 months. Yes, there was a lot of extra security. The guy in front of me bought over $1 million USD in gold. He paid in cash and walked out of the door with the bullion in a Nike bag. Amazing. [..] Here, the man would be arrested and jailed just for having his own money in cash. Oh, and the cash would be stolen." Continue reading →

Continue ReadingA Telling Gold Anecdote From Hong Kong

As Gold Declines Will Stocks Fly?

"We often write of directed history, the idea that powerful forces create conditions for the policies that they want to implement. When it comes to money metals, the idea would be to drive down metals prices while simultaneously affirming that these same metals are simply not a good investment. They are barbarous and whatnot. At the same time as precious metals prices are falling, stock indexes are rising – presumably at least in part because of the pump priming by central banks that are printing great gouts of money. Some of this money gets stuck in bank coffers but a fair amount is obviously finding its way into various stock markets." Continue reading →

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US banker proud to become Chinese national

"The rise of China has not only transformed the global landscape of the financial industry, but it has also changed an American banker’s nationality. Some in Hong Kong’s financial community were surprised by an e-mail from one of the most veteran investment bankers in the city on Tuesday night. Marshall Nicholson, a managing director in charge of investment banking in Hong Kong for China International Capital Corporation (CICC) told his colleagues and friends that he had officially renounced his United States citizenship and would soon receive a HKSAR passport. Nicholson, whose wife is a Hongkonger, first came to the city about 11 years ago." Continue reading →

Continue ReadingUS banker proud to become Chinese national

Ex-Soros Advisor Sells Japan Holdings, Shorts Bonds; Sees Crash, Default, Hyperinflation

"Fujimaki said he recently bought put options for Japanese government bonds of various maturities, without elaborating. He continues to hold real estate in Japan and options granting the right to sell the yen against the greenback expiring in less than five years. He also holds assets in U.S. dollars and currencies of other developed nations. 'Japan’s finance is sinking into the ocean,' Fujimaki said. 'There’s no escape from a market crash in the future when you have such enormous debt. By expanding the monetary base to 270 trillion yen, the BOJ is making a huge bet which I think it will ultimately lose,' Fujimaki said in an interview in Tokyo on April 11." Continue reading →

Continue ReadingEx-Soros Advisor Sells Japan Holdings, Shorts Bonds; Sees Crash, Default, Hyperinflation

U.S. Treasury to BOJ: Do As We Say, Not As We Do

"The BOJ will double the monetary base by purchasing about 7.5 trillion yen of Japanese government bonds per month. It plans to extend the average maturity of its portfolio from three to seven years. And it will continue such actions until it achieves its inflation target. In other words, the BOJ is doing exactly what the Federal Reserve is doing. And for this it gets a warning from the U.S. Treasury 'to refrain from competitive devaluation and targeting its exchange rate for competitive purposes'? The message came in the Treasury's semiannual report on international exchange rates, released on April 12." Continue reading →

Continue ReadingU.S. Treasury to BOJ: Do As We Say, Not As We Do

Is Japan’s Devaluation an Attack on China?

"In an article yesterday we suggested that the reason Japan was embarking on a massive attempt at Keynesian-style stimulation was to promote the efficacy of Keynesian economic 'cures.' But there is another possibility as well. Perhaps the idea is to start a currency war aimed at least in part at China. Japan is a longtime ally of the US, which defeated it in World War II. It is certainly possible that Japan has allied itself with the US to serve Anglo-American interests in this regard. It is indeed possible to hypothesize that Japan's current policy is intended to confront China and therefore is being used as a monetary 'weapon of war.'" Continue reading →

Continue ReadingIs Japan’s Devaluation an Attack on China?

North Korea Is Like a Misbehaving Child—Ignore It

"Although at the official level, ignoring North Korean blustering, while taking adequate measures to defend the United States—not South Korea—from the future limited threat that North Korea might pose, the U.S. government should not discourage or have disdain for visits by private citizens, such as Dennis Rodman. These private visits help break the isolation that the Kim regime needs to survive and that U.S. government regularly haplessly provides with economic sanctions and counter bluster. Let’s show the publicity-hungry Kim Jong-un that his words and actions are a lot less important to the United States than he thinks." Continue reading →

Continue ReadingNorth Korea Is Like a Misbehaving Child—Ignore It

Historic Gold Crash. What To Expect Next [Bearish]

"First, central bank money-printing has lost its impact on the markets. Second, austerity measures in Europe and the United States are also overpowering the inflationary impact of money-printing. Third, and most importantly in my view, the Cyprus confiscation of uninsured depositor money has completely turned the world upside down. Money is no longer safe in a bank in Europe. That, in turn, is causing hundreds of billions of dollars to essentially go into hiding. But not in gold, which is subject to confiscation, real or imagined. Fourth, Japan’s new aggressive policy to devalue its currency is also not bullish for gold." Continue reading →

Continue ReadingHistoric Gold Crash. What To Expect Next [Bearish]