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We have added this section to keep up on current financial global events, and to document some of the discussions and changes and  movements going on around the globe. Although we cannot include all articles, we try to give the "center view" and include articles from reliables sources and not blogs. We have used three pages and have divided them as:  Articles, Central Banks, IMF.

This way you can see what the IMF is saying, the Central Banks are doing and sayings and general articles as well.

Systemic Risk Among Deutsche Bank and Global Systemically Important Banks (Source: IMF — “The blue, purple and green nodes denote European, US and Asian banks, respectively. The thickness of the arrows capture total linkages (both inward and outward), and the arrow captures the direction of net spillover. The size of the nodes reflects asset size.”)

PICTURE March 30, 2017 from

March 12, 2017 Article from
"The Dollar Is Coming Home To Die: Dumped By The World"

With the war in the gold and silver markets continuing to rage, today a 50-year market veteran discussed what’s next after massive shorting by commercial hedgers and bullion banks.
John Embry: “I can’t say that I’m terribly surprised by what is happening to gold and silver prices this week given the remarkable build in the open interest on the Comex and the staggering level of the commercial — i.e. bullion banks’ — short positions…

JP Morgan Ordered To Stand Trial Consecutively For Antitrust & Silver Rigging: By The U.S. Supreme Court & NY 2nd U.S. Circuit Court of Appeals
France: Entire Swiss Branch Of Rothschild’s Banking Empire Under Criminal Investigation Following David De Rothschild Conspiracy Indictment.
Russia’s Landmark Speech: New Centers Of Economic Power ~ As China, Japan, Belgium, Switzerland, & Saudi Arabia Dump The Rothschild Fiat U.S. Dollar.

Shanghai Shock April 19, 2016: Yuan Based Gold Standard.

B.P. Oil Spill & Deadly Corexit May Kill Millions Of U.S. Citizens: U.S. Strategic Petroleum Reserves Stored In Collapsing Salt Domes On Coast Of Louisiana!
Clif High’s [web bot project] has long been predicting that silver and gold will skyrocket higher as the US Dollar loses its dominion as the world’s reserve currency.
And as the once formidable Dollar ultimately begins to hyperinflate as nations lose all confidence in the Federal Reserve Note, the web bots predict triple digit silver prices and eventually even a 1 to 1 silver to gold ratio in coming years.
Will it really happen? No one can say with certainty, but there are very concrete signs that the cracks in the western banking system and fiat Dollar are about to turn into gaping fissures. Meanwhile, China is hoarding PHYSICAL silver at the Shanghai Gold Exchange and openly encouraging Chinese citizens to acquire physical silver and gold as a way to protect their wealth.

It’s a paradigm shift of epic proportion, away from paper Dollars and into PHYSICAL metal. David Morgan from The Morgan Report is here to discuss it all. SGTreport. Rothschild’s Zionism Handbook For Obama.
Out Of Chaos: Comes Dead Conspirators!
As gold and silver have reversed course this year and are in the early stages of a historical bull market, a fact confirmed by the dramatic gains in the HUI Index since January, the usual suspects have gone all-in to stop the advance.
wicked witch oz flying monkeys
Two Authors Warned Us About Rothschild’s Banking Cabal: Baum & Tolkien ~ Wizard Of Oz & Lord Of The Rings
the wicked Witch of the East represented eastern industrialists and bankers who controlled the people (the Munchkins);
the Scarecrow was the wise but naive western farmer;
the Tin Woodman stood for the dehumanized industrial worker;
the Cowardly Lion was William Jennings Bryan, Populist presidential candidate in 1896;
the Yellow Brick Road, with all its dangers, was the gold standard;
Dorothy’s silver slippers (Judy Garland’s were ruby-red, but Baum originally made them silver) represented the Populists’ solution to the nation’s economic woes (“the free and unlimited coinage of silver”);
Emerald City was Washington, D.C.;
the Wizard, “a little bumbling old man, hiding behind a facade of paper mache and noise, . . . able to be everything to everybody,” was any of the Gilded Age presidents [Rothschild].
[From “The Rise and Fall of The Wonderful Wizard of Oz as a ‘Parable on Populism,” David B. Parker inJournal of the Georgia Association of Historians, vol. 15 (1994), pp. 49-63.]
George Washington unfunded paper money
Bullion Banks Shorting Staggering Amounts Of Paper Gold:
If gold and silver had blown through $1,300 and $18 respectively last week, it would have attracted considerable interest and much more buying. To prevent this from happening, the bullion banks have shorted staggering quantities of gold and silver in the last couple of weeks.

The most recent COT (Commitment of Traders Report) showed an increase of 50,000 contracts in the commercial gold short position in just one week. And this shorting has continued unabated through today. The amount of gold being [paper] shorted on the Comex alone dwarfs the physical production of gold.

To put this in some perspective, the open interest [paper derivative fraud in the U.S. COMEX] has recently grown by well over 100,000 [counterfeit paper] contracts in a [6 week] short period. That represents over 10 million ounces of [paper] gold or close to $13 billion in [paper] notional value. In an industry [Globally] which produces roughly [only] 90 million [physical] ounces in a full year.

MAY 11, 2016 [Paper] GLD SEES ANOTHER 2.67 [Paper] TONNES ADDED [paper sold] TO INVENTORY In U.S.
I can’t think of another market that can withstand that degree of [paper] selling [to the U.S. COMEX] without buckling under the extreme selling pressure. However, even after repeated attacks, the gold price is still less than 3 percent off recent highs, and keeps bouncing back after each new assault.

In my opinion, this smacks of desperation on the part of the bullion banks, in a world in which the Western physical inventories are shrinking at an alarming rate, and the paper claims [derivatives churned] on them are surging into the stratosphere [complete fraud against the price charts/American people]

Abduction Patty Hearst stockholm

Globalist Stockholm Syndrome 2016: False-Hope Psychosis
Pay Attention To Maguire And Mylchreest

Recommend that investors who want to know the true status of the gold inventories in the very important London market pay very close attention to the comments of the well-informed Andrew Maguire, who appears regularly at KWN. Or they can read the brilliant essay by Paul Mylchreest, which appeared a week or so ago. Reinforcing the shortage in London is the pitiful level of inventory at the Comex in relation to the paper claims outstanding.

Ignore The “Noise”

I have said very recently that there is no middle ground left. Either the powers that be can continue to contain gold and silver in their current trading ranges for somewhat longer with their paper shenanigans, or there is going to be an upside explosion in prices that will shock most observers.

I again reiterate ignore the ‘noise’ here, and acquire as much physical gold and silver as one can while it is still available.

Witten by Volubrjotr


January 25, 2017 Article from
Fitch warns time is running out for China's debt-driven boom
China is creating credit at twice the pace of underlying growth and is relying on hazardous bubbles to keep growth running far above the safe speed limit, Fitch Ratings has warned.

Short-term stimulus is papering over deep cracks in the economy and vital reforms are being neglected, storing up serious trouble for the future.

The credit agency said state control over the banking system will prevent a sudden collapse in confidence or a western-style financial crash, but the Communist authorities are running out of tools to meet their inflated GDP targets. China's epic catch-up boom since the early 1980s is likely sputter out gently as banks struggle with the legacy of bad debts and chronic malinvestment.
Witten by Ambrose Evans-Prichard


December 21, 2016 Article from
"Spanish banks face $4.2 billion hit from European court's loan ruling"
By Jesús Aguado and Angus Berwick | MADRID
Spanish banks must repay customers more than 4 billion euros ($4.2 billion) after Europe's top court unexpectedly overturned a Spanish ruling that capped liabilities relating to a disputed mortgage clause, posing a new challenge to some lenders.
Banks will have to compensate customers for what they lost even before May 2013, when Spain's Supreme Court declared the mortgages invalid if they had not been presented clearly. The home loans had an interest rate that could not fall below a benchmark, meaning customers lost out on the lower mortgage cost when rates dropped beneath this level.
New charges resulting from Wednesday's European Court of Justice ruling could eat into bank earnings, which have already been eroded by record low interest rates and fierce competition for a shrunken loan pool, and encourage more mergers.
Banco Popular (POP.MC), the sector's weak link and seen as a potential takeover target, faces about 330 million euros in new charges. Its shares led losses among Spanish banks and were down 6.6 percent by 1300 GMT.
The ruling also knocked shares in Banco Sabadell (SABE.MC), Caixabank, BBVA and Liberbank (LBK.MC) -- the banks most exposed to the "floor clauses," which were introduced as a safety net during the financial crisis.
BBVA (BBVA.MC) and Caixabank (CABK.MC) have said it could cost them 1.2 billion euros and 750 million euros respectively.
Most Spanish banks have removed the clauses from their mortgage products since the 2013 Spanish court ruling and already set aside money to cover compensation of around 5 billion euros that the court ruled had been incorrectly charged.
A Bank of Spain source said this could have an additional impact of "slightly more" than 4 billion euros on the country's banks, in line with analysts' predictions. Analysts expect an average hit of around 30 basis points on capital ratios.
The ruling, which was widely unexpected by the banks, is final and cannot be appealed, an EU court spokeswoman said.
The case first arose after several Spaniards said that banks had hidden the floor clauses in their mortgage contracts. The ECJ ruling could now open the door to 2 million others seeking repayment from banks, consumer lobby group Adicae said.
"It follows that national case-law, such as that following from the judgment of 9 May 2013, ... ensures only limited protection for consumers," the ECJ said in its written ruling. "Such protection is therefore incomplete and insufficient."
In response to the ruling, the Spanish banking association said banks were open to renegotiating with clients but they wanted more details to know how to apply the decision under Spanish law. Spain's Socialist party called for measures so that people could recover their money as quickly as possible.

EU court mortgage ruling could make Spanish banks repay 4 billion euros: Bank of Spain source
It is still unclear, however, how the banks will go about repaying customers.

Banco Sabadell, which said its mortgages were still valid as they had been presented clearly, could be liable for new charges worth 490 million euros, according to Deutsche Bank analysts.

BBVA, Spain's second largest bank, said the ruling would knock its full-year earnings for 2016 by 404 million euros. BBVA shares were down 1.9 percent by 1300 GMT, while next largest lender Caixabank's were down 2.5 percent

Smaller lender Liberbank, which in relation to its size is the most affected, is liable for 259 million euros. Banco Santander (SAN.MC), Spain's largest bank, was among the least impacted as it did not use mortgage floors.
(Editing by Alexander Smith)

December 8, 2016 Article from
"New rules for gold investing may open the market to 1.6 billion Muslims"
The gold market saw the establishment this week of a new set of rules that has the ability to shake up the industry.
The launch of the "Shariah Standard on Gold", which offers guidance on the use of modern gold financial products that meet the requirements of the religious law governing members of Islam, opens the market for the yellow metal to potentially significant demand from the Muslim world.
The "Accounting and Auditing Organization for Islamic Financial Institutions" (AAOIFI) and the "World Gold Council" announced the issuance of the Standard on Monday.
“This is a ground breaking initiative for Islamic investors and for the gold industry at large,” Aram Shishmanian, chief executive officer of the World Gold Council said in a statement.
Gold futures for February GCG7, +0.60%  climbed Wednesday to snap a two-day skid and settle at $1,177.50 an ounce.
Before the Standard, there was a lack of clarity when it came to Islamic investment in gold, the WGC said. Investment in gold was permissible provided that relevant Shariah rulings are satisfied including those relating to taking possession and proper calculation of Zakah [an Islamic requirement to contribute to charity], among others,” the WGC said.
Gold is also one of Islam’s Ribawi items and “practitioners need to be cautious when transacting in gold to ensure they meet all Shariah requirements,” according to the WGC. Ribawi refers to six substances that are sold by weight and measure, including gold.
In a market update Tuesday, GoldCore’s research executive Jan Skoyles and Editor Mark O’Byrne pointed out that as many as 1.6 billion Muslims in the world, or 25% of the population, will have “far greater access to the gold market than they have since the birth of modern finance, which has been primarily structured towards Western ideals.”
The Shariah Gold Standard allows Islamic investors to invest in vaulted gold, gold savings plans, gold certificates, physical gold exchange-traded funds and gold-mining shares within certain Shariah parameters, according to GoldCore.
GoldCore will launch a fully-compliant Shariah bullion investment offering in the first quarter of next year.
The standard will likely increase diversity in the number of available Shariah gold-compliant investment products, spark greater emphasis on the role of physical gold transactions and Islamic finance will have “a greater say in the setting of the gold price,” Skoyles and O’Byrne said.
But the rules could take another six months to really start affecting short-term and medium-term gold prices, said Chintan Karnani, chief market analyst at Insignia Consultants.
Longer term, the market will monitor the amount of investment in Shariah Gold Standard products to “determine whether they pose a serious threat” to the current ways gold prices are established, he said.
Written by Myra P. Saefong Markets/Commodities reporter

October 6, 2016 Article from United Nations Framework Convention on Climate Change ( 
"Landmark Climate Change Agreement to Enter into Force"
Over 55 Parties covering More Than 55 per cent of Global Greenhouse Gas Emissions Ratify the Paris Climate Change Agreement
New York/ Bonn, 5 October 2016—The UN’s top climate official today praised nations across the globe for acting swiftly to bring the landmark Paris Climate Change Agreement into force.
“This is a truly historic moment for people everywhere. The two key thresholds needed for the Paris Climate Change Agreement to become legal reality have now been met,” said Patricia Espinosa, Executive Secretary of the UN Framework Convention on Climate Change (UNFCCC).
“The speed at which countries have made the Paris’s Agreement’s entry into force possible is unprecedented in recent experience of international agreements and is a powerful confirmation of the importance nations attach to combating climate change and realizing the multitude of opportunities inherent in the Paris Agreement,” she said.
In a statement issued before the threshold for ratification of the Paris Agreement was crossed, UN Secretary-General Ban Ki-moon said: "Strong international support for the Paris Agreement entering into force is testament to the urgency for action, and reflects the consensus of governments that robust global cooperation is essential to meet the climate challenge."
The Paris Agreement was adopted in Paris, France at the UN climate conference in December 2015. In order to enter into force, at least 55 Parties accounting for at least 55 per cent of global greenhouse gas emissions were required, with the Agreement then entering into force 30 days later.
Today, the UNFCCC secretariat tracker  shows that the number of Parties that have ratified, accepted, or approved the Agreement now covers over 55% per cent of global greenhouse gas emissions. This includes the biggest and smallest emitters, the richest and the most vulnerable nations.
“Above all, entry into force bodes well for the urgent, accelerated implementation of climate action that is now needed to realize a better, more secure world and to support also the realization of the Sustainable Development Goals,” Ms. Espinosa said.
“It also brings a renewed urgency to the many issues governments are advancing to ensure full implementation of the Agreement. This includes development of a rule book to operationalize the agreement and how international cooperation and much bigger flows of finance can speed up and scale up national climate action plans,” she added.
Consequences of Entry into Force
Entry into force triggers a variety of important consequences, including launch of the Agreement’s governing body, known as the CMA. In the parlance of the UN climate change process this stands for the Conference of the Parties to the Convention serving as the meeting of the Parties to the Paris Agreement.
Given that the count-down to entry into force has now been formally triggered, the CMA will take place at the upcoming annual UN climate conference, known as COP22, in Marrakesh, Morocco from November 7-18. Precise dates will be announced in the coming days.
Moreover, the Intended Nationally Determined Contributions (INDCs) – national climate action plans - of Parties which have joined or subsequently join the Agreement transform into Nationally Determined Contributions (NDCs), which can always be resubmitted as more ambitious plans at any point. A key feature of the Agreement is that these plans can be strengthened at any time but not weakened.
“Climate action by countries, companies, investors and cities, regions, territories and states has continued unabated since Paris and the full implementation of the agreement will ensure that this collective effort will continue to double and redouble until a sustainable future is secured,” said Ms Espinosa.
Governments will also be obligated to take action to achieve the temperature goals enshrined in the Agreement – keeping the average global temperature rise from pre-industrial times below 2 degrees C and pursuing efforts to limit it to 1.5 degrees.
The fact that somewhere around one degree of this rise has already happened and global greenhouse gas emissions have not yet peaked underlines the urgency of implementing the Paris Agreement in full. 
Another key milestone will be the successful conclusion of negotiations to develop the Paris Agreement’s implementation rule book. Completion of what is, in effect, a global blueprint for reporting and accounting for climate action, need to be completed as soon as possible.
Countries are also not starting from scratch. The many successful models and mechanisms for international climate cooperation set up under the UNFCCC over the past two decades, including the Kyoto Protocol, have built up a deep level of experience and knowledge on how this can be done effectively.
It is the completed rule book that will make the Agreement work and that will make it fully implementable, setting out the detailed requirements under which countries and other actors will openly report and account for the climate action they are taking in a way which promotes trust and confidence across nations to boost their own comprehensive response to the challenge of climate change.
Another key issue is to ensure that the $100 billion, pledged by developed countries to developing ones, is truly building in the run up to 2020 and that even larger sums are being leveraged from investors, banks and the private sector that can build towards the $5 to $7 trillion needed to support a world-wide transformation.
Securing a world which is safer from the extreme climate change that would undermine any attempt at future sustainable development will still take decades of rising action and constant improvement.
“The entry into force of the Paris Agreement is more than a step on the road. It is an extraordinary political achievement which has opened the door to a fundamental shift in the way the world sees, prepares for and acts on climate change through stronger action at all levels of government, business, investment and civil society,” said Ms Espinosa.
For more information on status of ratification, a list of the countries who have ratified, accepted, approved or acceded and a question and answer on the Paris Agreement and other related information please go to
Media Can Contact Nick Nuttall, UNFCCC Spokesperson/Director of Communications and Outreach, on Tel: +49 1520 168 48 31, e-mail:
About the UNFCCC
With 197 Parties, the United Nations Framework Convention on Climate Change (UNFCCC) has near universal membership and is the parent treaty of the 2015 Paris Climate Change Agreement. The main aim of the Paris Agreement is to keep a global average temperature rise this century well below 2 degrees Celsius and to drive efforts to limit the temperature increase even further to 1.5 degrees Celsius above pre-industrial levels. The UNFCCC is also the parent treaty of the 1997 Kyoto Protocol. The ultimate objective of all agreements under the UNFCCC is to stabilize greenhouse gas concentrations in the atmosphere at a level that will prevent dangerous human interference with the climate system, in a time frame which allows ecosystems to adapt naturally and enables sustainable development.
Media contact; Nick Nutgall, UNFCCC Director of Communications
About the UNFCCC
With 197 Parties, the United Nations Framework Convention on Climate Change (UNFCCC) has near universal membership and is the parent treaty of the 2015 Paris Climate Change Agreement. The main aim of the Paris Agreement is to keep a global average temperature rise this century well below 2 degrees Celsius and to drive efforts to limit the temperature increase even further to 1.5 degrees Celsius above pre-industrial levels. The UNFCCC is also the parent treaty of the 1997 Kyoto Protocol. The ultimate objective of all agreements under the UNFCCC is to stabilize greenhouse gas concentrations in the atmosphere at a level that will prevent dangerous human interference with the climate system, in a time frame which allows ecosystems to adapt naturally and enables sustainable development.

September 27, 2016 Article from Wall Street on Parade By Pam Martens and Russ Martens
"The New Banking Crisis in Two Frightening Graphs"
After repeated, but ignored, warnings over the past two years from researchers at the U.S. Treasury’s Office of Financial Research (OFR), the new banking crisis has arrived with a vengeance and at a most inopportune time – when confidence is already draining from the financial system because of two U.S. presidential candidates with the highest disapproval ratings in modern history. 

Yesterday, Germany’s largest financial institution, Deutsche Bank, lost 7.06 percent by the close of trading on the New York Stock Exchange. That plunge in one of the most globally-interconnected banks dragged down the shares of every major Wall Street bank yesterday: Bank of America lost 2.77 percent; Morgan Stanley declined by 2.76 percent; Citigroup lost 2.67 percent; Goldman Sachs shed 2.21 percent; and JPMorgan Chase closed down 2.19 percent. Deutsche Bank, whose shares traded at more than $120 pre-crisis in 2007, closed at $11.85 yesterday in New York and was down another 3 percent in overnight trading in Europe.

At yesterday’s close, Deutsche Bank had $16.344 billion in market value with a balance sheet of $1.9 trillion in assets as of the end of 2015. If that doesn’t sound like a replay of the Citigroup debacle that spiraled out of control in 2008 and took down other bank shares, we don’t know what does. But the big picture is actually worse than even this suggests. 

The first graph above comes from a report released in June of this year by the International Monetary Fund (IMF). The report singled out Deutsche Bank as “the most important net contributor to systemic risks.” The researchers wrote:

“Notwithstanding moderate cross-border exposures on aggregate, the banking sector is a potential source of outward spillovers. Network analysis suggests a higher degree of outward spillovers from the German banking sector than inward spillovers. In particular, Germany, France, the U.K. and the U.S. have the highest degree of outward spillovers as measured by the average percentage of capital loss of other banking systems due to banking sector shock in the source country…

“Among the G-SIBs [Global Systemically Important Banks], Deutsche Bank appears to be the most important net contributor to systemic risks, followed by HSBC and Credit Suisse…The relative importance of Deutsche Bank underscores the importance of risk management, intense supervision of G-SIBs and the close monitoring of their cross-border exposures, as well as rapidly completing capacity to implement the new resolution regime.”

Has there been “close monitoring” of the Global Systemically Important Banks by U.S. Federal regulators like the Federal Reserve and Office of the Comptroller of the Currency? Based on the reports released by the U.S. Treasury’s Office of Financial Research, the Federal regulators are just as asleep at the switch this time around as they were in the lead up to the Wall Street banking crash of 2008.

The regulators took no action when Citigroup effectively repealed an important derivatives reform measure by slipping an amendment into a Congressional spending bill in December 2014 that allowed banks holding FDIC-insured deposits to keep trillions of derivatives on the books of the bank, instead of pushing them out to other, uninsured, units of the bank holding company. That put the U.S. taxpayer right back on the hook for another massive bailout if the bank should fail.

Federal regulators have also sat on their hands as Citigroup has loaded up on credit default swaps, the very instruments that blew up the big insurer AIG in 2008, forcing a taxpayer bailout of $185 billion. As we wrote on August 4:

“According to the data, Citigroup now has $2.08 trillion in Credit Derivatives (the vast majority of which are Credit Default Swaps). Only JPMorgan is bigger with $3.1 trillion in credit derivatives. Equally frightening, the vast majority of these are private contracts between financial institutions (Over-the-Counter) where regulators lack the granular details of the deals. President Obama falsely promised the American people that derivatives would be moved onto exchanges with proper capital and transparency following the Dodd-Frank financial reform legislation in 2010. That has not happened. The vast majority of all derivatives are still traded in the dark.

“Not only are Citigroup’s Federal regulators allowing it to engage in this high risk trading but they are actually allowing Citigroup to purchase the high risk positions of a deeply troubled bank – Deutsche Bank. Risk Magazine reports… that Citigroup bought $250 billion of Credit Default Swaps from Deutsche Bank in 2013. Bloomberg News also reported on the $250 billion Citigroup purchase from Deutsche Bank.”

Subsequent to our August 4 article, Bloomberg News reported that Citigroup had “purchased a portfolio of credit-default swaps from retreating rival Credit Suisse Group AG” which had a notional value (face amount) of $380 billion.

That Federal regulators would allow this toxic stew to once again bubble up in the U.S. banking system after the biggest banking collapse since the Great Depression just eight years ago is nothing short of negligence and dereliction of duty.

The Federal Reserve is not only derelict, but according to the Office of Financial Research, it is not even properly conducting its stress tests on the big banks. On March 8, OFR released a study on Credit Default Swaps. The researchers found that the Fed’s stress tests are measuring only the bank holding company’s “direct counterparty concentrations” for credit default swaps rather than the indirect fallout. The authors found that “indirect effects can be as much as nine times larger than the direct impact” on the bank holding company, and ignoring that reality “could understate the stress on banks.”

Watching the fallout in the shares prices of interconnected banks yesterday, and the same pattern in January of this year, effectively proves that the OFR researchers are right and the Federal Reserve is dead wrong. 

Wall Street Mega Banks Are Highly Interconnected: Stock Symbols Are as Follows: C=Citigroup; MS=Morgan Stanley; JPM=JPMorgan Chase; GS=Goldman Sachs; BAC=Bank of America; WFC=Wells Fargo.

September 4, 2016 Article from Nikkei Asian Review
"China, US commit to refrain from competitive currency devaluations"
HANGZHOU, China (Reuters) -- China and the United States on Sunday committed anew to refrain from competitive currency devaluations, and China said it would continue an orderly transition to a market-oriented exchange rate for the yuan.
A joint "fact sheet", issued a day after U.S. President Barack Obama and his Chinese counterpart Xi Jinping held talks, also said the two countries had committed "not to unnecessarily limit or prevent commercial sales opportunities for foreign suppliers of ICT (information and communications technology) products or services".
While China and the United States cooperate closely on a range of global issues, including North Korea's disputed nuclear program and climate change, the two countries have deep disagreements in other areas, like cyberhacking and human rights.
Both countries said they would "refrain from competitive devaluations and not target exchange rates for competitive purposes", the fact sheet said.
Meanwhile, China would "continue an orderly transition to a market-determined exchange rate, enhancing two-way flexibility. China stresses that there is no basis for a sustained depreciation of the RMB (yuan). Both sides recognize the importance of clear policy communication."
China shocked global markets by devaluing the yuan in August 2015 and allowing it to slip sharply again early this year. Though it has stepped in to temper losses in recent weeks, the currency is still hovering near six-year lows against the dollar.
Xi and Obama met in Hangzhou in eastern China where leaders from the world's 20 leading economies, the G20, were gathering for a summit on Sunday and Monday.
Foreign business groups say China's pending cyber rules, including a cyber security law that could be passed this year, include provisions for invasive government security reviews and onerous requirements to keep data in China.
They say the regulations would create barriers to market entry for foreign companies and impair the country's security by isolating it technologically.
Global business groups spanning finance, information technology, insurance and manufacturing have urged China to revise its draft rules, and have pressed the U.S. government to raise the issue with Beijing.
The fact sheet said the two sides had committed to policies that "should treat technology in a non-discriminatory manner (and not) unnecessarily limit or prevent commercial sales opportunities for foreign suppliers of ICT products or services".
Other points from the fact sheet:
- Both sides commit to use all policy tools - monetary, fiscal and structural - to foster confidence and strengthen growth; fiscal policy should be used flexibly to strengthen growth, job creation and household demand.
- Building on current progress, China is to deepen supply-side structural reforms with a comprehensive strategy, including state-owned enterprise reform, giving full play to the role of the market and legal mechanisms, to reduce corporate debt, including SOE debt.
- The two sides recognize that structural problems, including excess capacity in some industries, have caused a negative impact on trade and workers; both countries recognize that excess capacity in steel and other industries is a global issue which requires collective responses.
- Both sides recognize that the effective and balanced protection of intellectual property rights will be beneficial to promote innovation.
- They welcome the completion of peer review reports on the fossil fuel subsidies of the United States and China.
September 1, 2016 Article from Zerohedge
"In Historic Event, China Sells First World Bank SDR-Denominated Bonds In Decades"
The issue, the first SDR bond in 35 years, is being closely watched by investors as it's part of a wider push in China to increase the net supply of such bonds, and comes as Beijing hosts the G20 summit in Hangzhou on Sept. 4-5. The SDR is a synthetic reserve currency administered by the IMF, whose value is determined by a basket of other major world currencies.
The first issuance in China of bonds denominated in Special Drawing Rights was well received, Gongsheng added, as he pledged to expand the use of the International Monetary Fund's reserve currency. Speaking at a press conference, Pan, who is also head of China's foreign exchange regulator, said the bid to cover ratio was 2.5 with around 50 institutional investors bidding for the bonds, including domestic banks, brokerages, insurance companies and overseas central banks as well as international organizations and overseas financial institutions. Chinese government bond auctions typically have a bid to cover ratio of around 3. 
The global lender has got approval from the PBOC for a 2 billion SDR programme, and despite the apparent success of Wednesday's issue analysts say future demand for the bonds from local investors might prove tepid. 
Analysts say China will be keen to foster interest in the SDR debt programme as it steps up efforts to internationalise the Chinese yuan, and further liberalise its capital markets.
Others were more optimistic, with HSBC saying the issuance will provide diversification in domestic investments for foreign investors who are accessing the Chinese market, but still buying government bonds or policy bank notes, Candy Ho, global head of RMB business development for global markets, says at a press conference today.  HSBC expects potential pickup in interbank bond market activity following the Special Drawings Rights issuance, while the SDR issuance and RMB inclusion into SDR will bring inflows from central banks and other foreign institutions.
Article written by Tyler Durden

The U.S. economy is near full employment, but there’s little spending on buildings, roads, equipment and technology 
But everyone knows the recovery has been uneven.

Who’s preparing the United States for the 21st century? Nobody, really. Not the 22 million private businesses, not the 118 million households, and not the 90,000 state, local or federal government agencies. 
Gross domestic investment totaled about $3.6 trillion in the second quarter of 2016, about 20% of gross domestic product. That may seem a large sum, but it’s the lowest share of GDP, except during recessions, since 1947.
After you subtract the capital that’s used up, net investment totaled only about $750 billion in the second quarter, or 4% of GDP, about half of the average over the post-war period. In fact, net investment has been running at the lowest rates since the Great Depression of the 1930s, suggesting that U.S. investment itself is in a depression.
Everyone knows by now that business investment has been extremely weak, especially during the recovery from the Great Recession.
Net investment by private businesses briefly rose to a little more than 3% of GDP in 2014 before the collapse in oil prices. It fell to only 1.9% of GDP in the second quarter, about half of the post-war average.
Why aren’t businesses investing more? Because there is already too much productive capacity in the world for the level of demand. Prices are generally falling or growing only tepidly, especially for manufactured goods. Vacancy rates for stores and offices are high. There is no great need to invest in high-tech equipment such as computers or chips because there haven’t been any great leaps forward recently. The old equipment works fine. (I’m using a six-year-old computer to write this.)
Equally bleak
What do households invest in? Mostly real estate. After the housing bubble burst about a decade ago, home buyers became more cautious. Few buyers believe today that real estate is a sure-fire way to double or triple their money. 
As a result, net investment by the household sector was just 1.3% of GDP in the second quarter, about half of the post-war average. New construction will probably increase modestly in coming years, but no one expects the same level we saw in the bubble years, or in the 1950s and 1970s when millions of housing units were built each year.
The economic stimulus proposed by President Barack Obama and passed by Congress in 2009 increased federal investments modestly (on such things as highways, high-speed internet, high-speed rail, environmental cleanups and green energy), but investments by state and local governments declined by an equal amount. 
The story is nearly the same at the state and local government level, which builds most of the roads, schools and transportation infrastructure. 
As a result, net investment by state and local governments dropped to 0.6% of GDP in the second quarter, about half the average over the post-war period. 
Somewhere, someone needs to find some courage, or we’ll be doomed to decades of disappointing growth.

Adding gold to official reserves protects Beijing, Moscow against dollar dominance
The bad news is that, on present “steady-as-she goes” monthly gold accruals, it will take China and Russia — No. 6 and 7 in the world ranking of global gold reserves — about six years to draw level with the fourth- and fifth-placed countries, France and Italy.
China seems to be following a more strategic campaign to counter the weight of the dollar, embodied by its successful multiyear bid to bring the yuan USDCNH, +0.1101%  the International Monetary Fund’s special drawing right. The official unit of account at the heart of world money will be enlarged to include the Chinese currency from Oct. 1, which could possibly be the precursor to the Chinese authorities attempting to strengthen the SDR — currently an artificial unit which is not traded on private markets — as a multilateral reserve currency.
China’s total official gold holdings are judged to be sizably larger since metal from local mine production is believed to held in a domestic account separate from the international gold holdings attributed to the country’s official reserves.
According to the IMF, which logs countries’ monthly gold holdings and reports them with a two-month lag, China bought monthly amounts of around 11 tons in January to April 2016, but kept bullion reserves unchanged in May. If China wishes to mount a genuine long-term challenge to American monetary dominance, it is conceivable that Beijing in coming years could mount a more spectacular action to close the gold gap with the largest holders, ether by taking more Chinese-controlled production into its reserves, or by arranging some form of large-scale gold purchase from international gold holders, private or official.
Compared with China, Russia has registered higher average monthly gold reserve purchases between January and June 2016 at 14 tons a month, according to latest IMF figures. But with more than 300 tons less gold in its reserves than China, Russia would still need six years to close the gap with France and Italy.
Moreover, China’s state-owned ICBC Standard Bank, ranked the world’s biggest bank by assets, has agreed to buy Barclays’ BARC, +1.88%  metals-storage business, including its modern facility in London —signaling China’s interest in becoming not just a trader in gold but a third-party depositary for other official and private 
According to statistics compiled by the World Gold Council and other sources, partly using IMF data, total world gold holdings last year increased by 702.5 tons, compared with 176.7 tons in 2014, reaching 32,733 tons in December, their highest level since 2002 when central banks, particularly from developed countries, were engaged in a general sell-off. Much of the increase is due to last year’s statistical upgrading of China gold coverage

It is all still in their hands.  


In the latest blow, Switzerland announced that it would hold a referendum on a radical proposal that would strip commercial banks of the ability to create money, depriving them of a great deal of their profit-making capabilities. If the Swiss proposal catches on around the world, it could shred core business assumptions that have underpinned the banking model over the past three centuries.
From Babylon to central bank
The next evolution happened when bankers realized that since depositors almost never simultaneously withdrew all their funds, banks could lend more capital than had been deposited. This allowed banks to “create” money in the sense that bankers could issue loans not necessarily backed up by hard deposits. Creating revenue in this way proved lucrative, but it brought banks into conflict with rulers, who were notionally in charge of the state’s money supply and any gains to be made from it. In England, whose financial system is in many ways the progenitor of today’s global system, this battle was played out between banker and ruler in the 16th and 17th centuries.
Ultimately, in 1666 King Charles II — well aware of the limits of his own power thanks to the beheading of his father 17 years earlier — put control of the money supply into private hands. The privatization of the money creation process gave birth to the system we use today, in which private or commercial bank loans are responsible for 97% of the money circulating in the modern global economic system. In another change, 28 years after Charles II’s reform, an enterprising group of businessmen offered the government cheaper loans in exchange for certain privileges, such as a monopoly over the printing of physical currency, and so the Bank of England was born.
This led to liquidity crises, with the South Sea Bubble of 1720 providing early evidence of this mechanism kicking into action. The fact that banks were lending more money than they could back up with capital also left them exposed to bank runs whenever the public lost confidence in them. The reserve ratio, which requires banks to keep a fraction of their loans backed by safer assets such as government debt or central bank money, is an attempt to keep this threat at bay. But it is an inherent characteristic of so-called fractional reserve banking that the risk of bank runs is ultimately inescapable. 
As British and then American influence spread, so did banks’ power, and capital flowed ever more freely around the world as domestic deposits were used to finance international projects. The system was heading for a fall, however, when World War I created great economic imbalances between Europe and the United States. 
China grapples with the ‘Internet of Things’
When global crisis finally struck again in 2008 it was different from 1929 in that there was no world war to blame for the global economic imbalances; this crisis followed an extended period of the banks having had things pretty much their own way. Instead, it was a giant version of the regular crises inherent in the system. This led to the thinking that it is the banks, and indeed the system they created around themselves, that need changing. In the eight years since 2008, layer upon layer of 1933-style regulation and restriction have thus been heaped on the banking sector.
A radical reform
Under the reformed system the creation of new money would instead be the prerogative of the central bank and the government. These national institutions would in theory be motivated by the needs of the state rather than by short-term profit and would keep the money supply growing at a fixed rate, doing away with the wild fluctuations of the credit cycle. (One challenge to overcome would be politicians attempting to hijack the money supply for short-term political gain.) 
For banks, the prospect is of course nothing less than a nightmare scenario, especially coming on top of all of their existing woes.
But there also would be great risks involved, the main one being the fear of the evil unknown. Though the economic instabilities of the past 300 years appear to have resulted largely from the fractional reserve system, was it also responsible for the relatively breakneck growth over the same period? Moreover, the changeover from one system to the other would be extremely tricky, requiring vast quantities of central bank money-printing and debt buybacks. That would be a recipe for an extremely fraught period carrying immense risks of mismanagement. In truth, another full-blown financial crisis may have to take place before such a changeover could be made at the global level.
Strikingly, the revolution is being considered at both ends of the spectrum: Iceland has lately proved among the most financially adventurous players on the global economic scene, while Switzerland has long been one of the most conservative. Considering the risks involved, adoption in a smaller economy such as Iceland or Switzerland would be a useful test case from a global perspective. It would limit the cost of failure to the global economy while helping establish the best way of adopting the changes should the reforms actually work.
The architects appear to have created an electronic system in which both parties in a transaction can act with confidence without the need for an intermediary, though there is some added risk for the payer, since reversing transactions is more difficult than in traditional banking. 

The House and Senate on Friday passed a $1.1-trillion spending plan that includes language implementing the IMF reforms, which have been awaiting congressional ratification since 2010, a delay that spurred global criticism of the U.S. President Barack Obama, who supported the change, signed the bill on Friday.

“The reforms significantly increase the IMF’s core resources, enabling us to respond to crises more effectively, and also improve the IMF’s governance by better reflecting the increasing role of dynamic emerging and developing countries in the global economy,” she said in a statement.
The IMF’s executive board approved a plan in 2010 to increase the voting share of emerging economies and double the amount of permanent funding available to the Washington-based fund, which serves as a lender of last resort to countries that face capital shortfalls.

Lawmakers imposed several conditions on their support for the reforms. The Treasury Department must push to repeal the fund’s so-called systemic-exemption policy, according to the budget bill. The policy allows the board to relax the IMF’s lending standards when a country’s default has major spillover risks. The board invoked the exemption in approving a bailout for Greece in 2010.
Normal Limits
China, the world’s second-largest economy, currently ranks sixth in voting shares at the IMF, behind the U.S., Japan, Germany, France and the U.K. Under the 2010 plan, China would jump to third, while India would climb to eighth from 11th and Brazil would move up four spots to 10th.
Quota reform “sounds esoteric to many people. What it stands for around the world is American leadership,” U.S. Treasury Secretary Jacob J. Lew said in an interview with “CNN’s Fareed Zakaria GPS” that will air on Sunday. “Things like approving quota reform mean we’re going to stay very strong on the world stage,” Lew said in a transcript provided by the network.
“Going forward, China will work closely with other member countries to support the IMF to continuously improve its quota and governance structure, to ensure that the IMF remains a quota-based and adequately resourced institution,” the People’s Bank of China said in the statement.

Here’s all the money in the world, in one chart
Published: Dec 21, 2015 11:17 a.m. ET 
Ever wonder how much money there is in the world?
“The amount of money that exists changes depending on how we define it. The more abstract definition of money we use, the higher the number is,” said Jeff Desjardins, an editor of Visual Capitalist, who put together an infographic to answer this question
For purists, who believe money refers only to currencies such as bank notes, coins, and money deposited in savings or checking accounts, the total is somewhere around $80.9 trillion. 
This is what a quadrillion looks like written out: 1,000,000,000,000,000. 
Investment in commercial real estate, often the most visible symbol of wealth, pales in comparison to stocks or derivatives at $7.6 trillion. 
The U.S. is responsible for nearly one-third of that global debt, while Europe follows at 26% and Japan at 20%. China, for all the criticism about its debt-fueled economic growth, owes 6% of the total.

IMF Managing Director Christine Lagarde Welcomes U.S. Congressional Approval of the 2010 Quota and Governance Reforms
“The United States Congress approval of these reforms is a welcome and crucial step forward that will strengthen the IMF in its role of supporting global financial stability. The reforms significantly increase the IMF's core resources, enabling us to respond to crises more effectively, and also improve the IMF's governance by better reflecting the increasing role of dynamic emerging and developing countries in the global economy.
Background information and useful links:
Main Outcomes of the 2010 Quota Reforms:
• More than 6 percent of quota shares will shift to dynamic emerging market and developing countries and also from over-represented to under-represented members.
• The quota shares and voting power of the IMF’s poorest member countries will be protected.
• There will be further scope for appointing a second Alternate Executive Director in multi-country constituencies with seven or more members to enhance the constituency’s representation in the Executive Board.
• The doubling of quotas together with the shift in quota shares and the move to an all-elected Board mark a significant step forward in the process of IMF quota and governance reforms.

March 3, 2011 International Monetary Fund Press Release
The 2008 Quota and Voice Reforms of the International Monetary Fund (IMF) entered into force today, following ratification of the Amendment on Voice and Participation to the Fund’s Articles by 117 member countries, representing 85 percent of the Fund’s total voting power.The amendment strengthens the representation of dynamic economies in the IMF and enhances the voice and participation of low-income countries. These 2008 Quota and Voice Reforms were followed by further reforms in 2010 that, once effective, will lead to a further shift of more than 6 percent of quota shares to dynamic emerging market and developing countries.
“The next step in this process will be for governments to ratify speedily the 2010 Amendment on the Reform of the Executive Board and to implement the quota increases to further align representation in the IMF with global economic realities,” he added. “This will represent the most fundamental governance overhaul in the IMF’s 65-year history and the biggest-ever shift of influence in favor of emerging market and developing countries.”
• Result in a significant shift in the representation of dynamic economies through quota increases for 54 member countries amounting to SDR 20.8 billion (about US$32.7 billion), which will become effective for those members that have consented to their increases once quota subscriptions are paid
• Establish a mechanism that will keep constant the ratio of basic votes to total votes in the IMF
For details of the reforms, see Press Release No. 08/64 and IMF Quota and Voice Publications.
December 16, 2010 International Monetary Fund Press Release
The Board of Governors of the International Monetary Fund (IMF) has approved a package of far-reaching reforms of the Fund’s quotas and governance. When voting ended on December 15, 2010, Governors representing 95.32 percent of the total voting power had cast votes in favor of a Resolution on Quota and Reform of the Executive Board, exceeding the 85 percent required. Following the Board of Governors’ approval, the next step is for member countries to accept the proposed quota increases and the amendment to the Articles of Agreement. Members will make best efforts to complete this by the Annual Meeting of the Board of Governors in October 2012. In many cases this involves parliamentary approval.
The Resolution, which had been recommended by the IMF's Executive Board to the IMF Board of Governors on November 5 (see Press Release No. 10/418), is a package of reforms on quotas and governance in the IMF. These reforms will lead to a major overhaul of the Fund’s voice and governance, strengthening the Fund’s legitimacy and effectiveness.
The reforms build on those initiated in 2008 (see Press Release No.08/93) and, combined with the earlier steps, the voting shares of emerging market and developing countries as a group will rise by over 5 percentage points. The 10 Fund members with the largest voting share will consist of the United States, Japan, plus the so-called “BRICs” (Brazil, China, India, the Russian Federation), and the four largest European countries (France, Germany, Italy, the United Kingdom--click here for table). The major realignment in the ranking of quota shares under this reform will result in a Fund that better reflects global realities.