Excerpts & Highlights
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Dinar Updates BGG News Time  2-9-16   Part 1 of 2

BGG: OK – Rcookie (and any other News Personnel) are going to help out tonite.
 
BGG: This maybe more of a “News / Dinar info free-for-all”
 
BGG: I wasn’t exactly prepared for tonite – but I guess the main thing I would want to mention – before anything else… aside from all the “goofy intel” (none of which has EVER BEEN ACCURATE)…
 
BGG: as I read the news out of Iraq – it plainly lines up (over and over) with what we have been saying AND it generally points to some major economic event in the future.

BGG: Numerous article… some vague – some pointed are all saying the same thing. Iraq is in dire straights (or was) for a solution.
 
BGG: For instance – this one…
 
BGG: Abadi: we crossed the country from imminent collapse following a drop in oil prices
 
BGG: He stressed Prime Minister Haider al-Abadi, on Tuesday evening, that his government was able to “transit” country of the “collapse” of an imminent economic result of the sharp decline in oil prices during the year and a half last year.
 
BGG: Ebadi said in a televised speech: “We were able to cross the country and keep it from imminent economic collapse after the sharp decline in oil prices during the year and a half,” noting that “since the honored responsibility and put key reform targets, and it was our ambition to unite all political efforts with us , but that did not materialize. “
 
BGG: He revealed Abadi for “the completion of the preparation of a comprehensive study of the structure of the ministries,” pointing out that “extra episodes will be canceled in order to state GOES real work.”
 
BGG: It is noteworthy that Iraq is going through an economic crisis because of lower oil prices, Anvaqath in the war against al “Daash”, as he emphasized Abadi, on more than one occasion, that Iraq will emerge from the financial crisis in stronger…
 
BGG: Can anyone tell me what event he’s talking about that has saved them???
 
larrykn: rv
 
sassy: monetary reform
 
jackflash101st: selling the bonds???
 
poppy3: promised new rate to WB to insure a loan. poppy3
 
Imperator: the IMF
 
jimplants: HIS ELECTION AND THE CANNING OF MALIKI
 
BGG: Ha Ha Ha – all good comments. I’m just asking – it’s pretty public…
BGG: I’ve been saying all along… they need a solution…
BGG: now they are admitting they need a solution.
 
ann4: plus tariffs, loans,
 
BGG: we know – they know – now they know we know…
 
Imperator: poppy3 i think is referring to that memorandum of understanding between the IMF AND THE CBI which is really important
 
BGG ann4: Tariffs won’t cut it – neither will any of the loans… THEY NEED 100 BILLION (for starters)…
 
BGG: they could collect 1000% of their incoming tariffs FOR THE NEXT 10 YEARS and NOT COVER THIS.
 
BGG: who in their right mind would loan IRAQ 100 Billion (USD) for their 2016 BUDGET DEFICIT…
 
BGG: basically – Oops – we spent too much money, we need a loan until next year.
 
BGG: NONE OF THAT WILL HAPPEN. I said this last time – when all the stink was being made about loans.
 
BGG: one thing you can be assured of – since the IMF is now in a direct advisory capacity – they will succeed.
 
BGG: Could you imagine – IMF takes over – Iraq fails immediately…
 
BGG: how would that play for the IMF’s future??
 
BGG: Rcookie – you have some thoughts for us??
 
rcookie: NOBODY TALKNG ABOUT NATIONAL OIL COMPANY LAUNCH PLANS IN ECONOMIC SYMPOSIUM YESTERDAY HOSTED BY OIL MINISTER ABDUL MAHDI…

WITH GROUP OF OIL EXPERTS AND ECONOMISTS…AND THE ROLE AS ALTERNATIVE TO DISPERSION IN THE OIL INDUSTRY NOW…
 
MEANING REFORM DIFFERENCES LIKE…NATIONAL SOVEREIGNTY…ECONOMIC DEVELOPMENT…SERVICE CONTRACT REWRITES…ECONOMIC OPENESS…
 
AND OUTLINES THE IRAQI ECONOMY OPERATING IN 4 STAGES….AGRICULTURE…OIL…WAR..AND WHAT IS TO COME….
 
rcookie: THIS IS THE VEHICLE THAT IS GOING TO GET OIL SHARES TO CITIZENS…
 
rcookie: Oil Minister calls for the restoration of the national oil company
60 Show Last update: Monday, February 8, 2016 – 11:01
Oil Minister calls for the restoration of the national oil company
 
It called for an economic seminar to the need to return to the national oil company as a managerial alternative to dispersion found in the structure of the oil industry and solving optimal at the present time, coinciding with the economic crisis faced by the country,
 
as well as to utilize them in building the foundation for the reform of the oil sector and overall economic development. This came in a symposium organized by the progress of the development policies of the Institute, and attended the »morning» under the title 

 
Abdul-Mahdi, that« the Iraqi economy navigate between the four stages of the first was the agricultural nature of the almost full, where most of Iraq’s population live in the countryside, and minority live in cities, and the agricultural life dominant, then began to rely on the oil pattern, where he became the country depends on oil, then began the stage of the war economy, which consumed oil and
 
Read More : http://www.dinarupdates.com/showthread.php?29715-Oil-Minister-calls-for-the-restoration-of-the-national-oil-company-2-9
 
rcookie: THIS IS HUGE AND RESOLVES MANY OF THE PROBLEMS THEY HAVE WITH LICENSING CONTRACTS…AND PUT THE DEALING WITH DIVERSE ENTITIES…
 
larrykn: Rcookie you said one of the things that needed to get done was the financial management law, has that been completed yet
 
rcookie: THINK ABOUT THE NATIONAL OIL COMPANY RELATIVE TO THE REPORT TODAY OF THE 36 SEPARATE BANKS PROCESSING OIL REVENUES FOR KURDS….
 
rcookie: YES POSTED COPY OF IT THIS MORNING…ALONG WITH IFMIS…TSA…PIM..
 
rcookie: THE NEWS AS TO WHERE THEY ARE AGAINST IMF LOI/MEFP/TECH MOU MANDATES IS ASTONISHING…
 
rcookie: POSTED ALL OF THE WORLD BANK LINKS AND DOCUMENTS…
rcookie: ITS ALL IN CHAT..

Waiting for great blessing, can’t be too far away from it as I understand. Things are happening very much behind the scenes, looking for completion of this very soon.

Everything we are hearing is moving this things along nicely, not much longer to wait. I am very encouraged what I have heard.

Highlights  from The Big Call 2-9-16

PinkRoses:  Bruce call: Bruce: Hope all are well, waiting for great blessing, cant be too far away from it as I understand.

Bruce call: Praying call in

Bruce call: Things are happening very much behind the scenes, looking for completion of this very soon. EVerything we are hearing is moving this things along nicely, not much longer to wait.

Bruce: Intel: I am very encouraged what I have heard. Its been very quiet today, which is a good thing.
 
Bruce: Short Q and A

Bruce call: Cant get Q and A.-Technical problems….. Bruce: lets call it a night. Not much out there can talk about.

EVerything very sensitive. Disappointed not have it today, tonight not over yet. Give it some thought, stay patient and you will be reward by that. Cutting the call short.

Bruce call: Kent praying call out

WSOMN:

Mick5150:  China wants this done by the end of the month

The cabal is done and no one is holding this up

I am very limited to what I can say…my source is directly involved in this

China will have this done by the end of the month if they have to do it themselves

Blaze :MICK so is this info “recent” like today.. thought we were told it needed to be done before TPP and before Chinese New Year…thnaks

Mick5150:  there was a problem with the governor of cbi

I’m still looking by the weekend ……. You guy start reviewing what you need to do for the exchange and all have a great night

Thanks all if I get any updates l will let you know…. be ready for a moments notice

KTFA:

BACKDOC:  GOOD EVENING FAMILY!

THIS IS BUT ONE OF MANY ARTICLES THAT SEEM TO BE SURFACING ON THE FINANCIAL STAGE THIS WEEK. WITH ALL THAT I’VE READ I FEEL THERE IS SOMETHING BIG ABOUT TO HAPPEN SOON!

WHEN GOLDMAN SACHS SAYS THEY ARE DOING A U-TURN ON THEIR TOP 5 INVESTMENTS FOR THE YEAR SOMETHING IS WRONG! WHAT IS GOING ON THIS WEEK? MMMM

TODAY THE NARRATIVE CONTINUES ON OIL DE-PEGGING FROM THE DOLLAR!

TODAY THE MARKET GOES DOWN WHILE OIL GETS KILLED!

SEEMS TO MEAN SOMETHING HAS NOW HAPPENED TO BREAK OIL FROM THE DOLLAR THAT THEY STARTED TEACHING THE WORLD LAST WEDNESDAY!

WE WERE LISTENING!

WE KNOW THAT CHINA IS DOWN FOR THIS WHOLE WEEK AS THEY BEGIN THEIR NEW YEAR. WITH DISCUSSION SO LONG ABOUT THEM DEVALUING THEIR CURRENCY AND TALK OF THEM DE-PEGGING FROM THE DOLLAR,

I AM VERY ANXIOUS TO SEE WHETHER A SERIOUS MARKET MOVING EVENT WILL HAPPEN WHEN CHINA RETURNS TO ACTION IN ITS MARKETS!

IF THEY DO DE-PEG IT WILL CONTRIBUTE TO THIS DEPEG PROCESS BUT THE LINCHPIN IS SAUDI ARABIA!

IF THEY DE-PEG THE NARRATIVE WOULD BE COMPLETE. S.A. CAN’T JUST WAIT AROUND NOT TRADING THEIR CURRENCY FOR EVER. WERE THEY WAITING FOR THIS WEEK FOR CHINA TO BE OFF A WEEK?

CAN YOU IMAGINE IRAN HAVING A CURRENCY COMPATIBLE WITH IRAQ AND KUWAIT AND S.A. BEING PEGGED TO A FAILING DE-DOLLARIZING DOLLAR?

NOPE!

THE GOLDEN TRIANGLE (CHINA, RUSSIA, IRAN), ALONE WILL PUT A SERIOUS HURT ON THE DOLLAR!

I SAY SOMETHING IS GOING ON BEHIND OZ’S CURTAIN THIS WEEK! I CAN’T BELIEVE HE DIDN’T INVITE ME THIS TIME! I’M OFFENDED! HEE HEE

8@8, DOC    IMO

Thunderhawk:  Backdoc Alert

Goldman: Systemic risks for markets are ‘stirring’

Fears of another liquidity shock in the European banking system have gripped the markets this week, with the price of insurance for European bank debt ballooning as market confidence in the region’s lenders fades rapidly.

Credit markets are “clearly taking note of the systemic risk”, but European banks’ access to capital and the short-term funding pressures they are tackling are “far less critical” than what lenders faced during the European sovereign debt crisis seven years ago, Goldman Sachs analysts said on Tuesday.

“We understand why markets might worry. Following the global financial crisis, European banks did not de-lever by nearly as much as U.S. banks. Moreover, to meet rising capital requirements, many European banks were planning to rely on retained earnings,” said head of global credit strategy at Goldman Charles Himmelberg, in a note to clients on Tuesday.

Bank share prices have faced a dreadful start to the year, with major lenders on both sides of the Atlantic seeing average falls of around 25 percent.

Deutsche Bank and Unicredit shares are both down around 40 percent this year, after fears about the banks’ capability of meeting their liabilities to investors.

“Credit markets are clearly taking note of the systemic risk, and it is certainly unwise to minimize such risks since systemic fears, once in place, can be self-fulfilling and difficult to reverse,” Himmelberg added.

“But we see many offsetting considerations. For one, the ‘capital-raising’ pressures currently facing European banks are far less critical than the short-term funding pressures faced during the European sovereign crisis. European banks have ample access to short-term liquidity via balance sheet liquidity, money markets, deposits, and European Central Bank backstop facilities such as the Long Term Refnincing Operation (LTRO), Targeted-LTRO, Emergency Liquidity Assistance (ELA),” Himmelberg said .

Deutsche Bank co-CEO John Cryan rushed Tuesday to reassure investors and staff on the bank’s stability, saying that the lender remained “absolutely rock-solid” and that he did not share the market’s concern over the adequacy of its balance sheet.

Deutsche Bank had already stressed Monday that it had “sufficient” reserves to service its so-called tier 1 debts, or its most junior bonds

But this did not stop the cost of insuring the debt of Deutsche Bank by using credit default swaps (CDS) from spiking, widening further than at any point during the financial crisis in 2008.

While elevated, financial credit spreads are also “far from distressed levels”, but “the re-introduction of systemic risk premia would materially erode the outlook for credit,” Himmelberg added.

Goldman also noted that heightened volatility had forced the bank out of a number of its “Top Trade” recommendations including plays on 5-year Italian and German sovereign bonds and its suggestion to be long, or bet on gains in U.S. banks vs. the S&P 500.

http://www.cnbc.com/2016/02/09/goldman- … rring.html

************

BACKDOC:  BANKS ARE IN THE KITCHEN AND THEY ARE FEELING THE HEAT!

CHARGING DEPOSITORS INTEREST RATES JUST TO HAVE THEIR MONEY DEPOSITED WILL ONLY LEAD TO DISTRUST OF BANKS AND CREATE STRATEGIES OF WAYS TO HOLD ASSETS OUTSIDE THEIR ARENA!

ONCE IT GETS WORSE THEY WILL START DOING BAILINS NEXT!

OUR JOB SHOULD BE TO STAY SECURITIZED FOR SURE! THE DIINAR YOU HOLD IS JUST THAT! JUST BE SURE YOU KNOW WHERE YOU ARE GOING BEFORE YOU LEAVE!

AN OLD TRADER SAID: ” KNOW YOUR EXIT BEFORE YOUR ENTRANCE” OUR EXIT NEEDS SECURITIZED!

DOC   IMO

Thunderhawk:   Backdoc Alert

World’s Negative-Yielding Bond Pile Tops $7 Trillion: Chart

More than $7 trillion of government bonds offered yields below zero globally as of Monday, making up about 29 percent of the Bloomberg Global Developed Sovereign Bond Index. The total is poised to swell further after Japan’s 10-year yield went below zero for the first time on record on Tuesday, as central-bank easing policies push borrowing costs to new depths. A negative yield means investors who buy the debt now and hold to maturity will receive less than they paid.

http://www.bloomberg.com/news/articles/ … lion-chart

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Mountainman:  PANIC….Is an Understatement…….CHINA has Positioned Themselves w/Others….Than the USD…..That Is…..So Depegging as Doc has Unveiled Mandates this Bank Disarray/PANIC…….But Many can’t WAIT for that BASKET to STABILIZE the MARKETS as The Global Playing Field…..Levels Out…IMO…..

In other WORDS the US Dollar Value is VALUELESS w/out A DEMAND for it…..And In order for The NEW GLOBAL REALITY to UNVEIL itself for ALL to Gain from…….The FIAT has to go to the JUNKYARD…..T.H. and PAPPA J say bring Out That SHINY NEW CADILLAC…..They want to SHOW the NEW LEATHER SEATS….LOL…Blessings,Mountainman

BACKDOC:  THE FED MAY JUST HAVE TO RAISE RATES DUE TO THE PICKLE THEY ARE IN! THE BANKS ARE IN TROUBLE AND SO ARE MARKETS!
DOC   IMO

Thunderhawk:  Backdoc Alert

From ZIRP to NIRP: What’s the Fed’s next move?

Negative interest rates in the U.S. may seem like a far-fetched idea, but the Federal Reserve is telling banks to prepare, just in case.

For the first time ever, the governing agency and U.S. central bank is requiring banks to include, in a round of stress tests commencing this year, to prepare for the possibility of negatively yielding Treasury rates. The scenario is purely hypothetical and not a forecast, according to a Jan. 28 Fed news release . However, the development is part of a larger scenario of a world where zero rates are morphing into negative rates.

This is how beggar-thy-neighbor monetary policies work, and perhaps why they ultimately fail.

One nation mired in an economic slump decides that the best way out is to devalue its currency, cheapening its exports and thus making them more attractive in countries that have higher-yielding currencies and, consequently, more buying power.

Seeing the success that country has, another seeks to emulate. And then another. And another. And another. In order to stay ahead of the game, central banks keep devaluing until there’s nothing left, tangibly at least, to devalue, and negative interest rates come into play.

Pretty soon you have nearly a third of all sovereign debt holding negative yields. In turn, what seemed like a powerful tool to stimulate lending and export-led economic growth becomes a toothless tiger that global central banks continue to deploy, the latest being in Japan. Suddenly, zero interest rate policy, or ZIRP, has morphed into negative interest rate policy, or NIRP.

This is no dystopian hypothetical. This is what central banking has become in a global economy beset by meager growth.

Worries are growing that the Federal Reserve soon could bring NIRP to U.S. rates. Japan went to NIRP last week, and the yield on the 10-year Japanese government bond went negative overnight Monday for the first time ever.

“It appears that NIRP is becoming the main policy tool for a number of major central banks as they battle falling inflation, rising currencies and economic weakness,” Jeffrey Kleintop, chief global investment strategist at Charles Schwab, said in an analysis. “The effectiveness of slightly negative interest rates is far from assured, and increasingly negative interest rates may not just weigh more heavily on the stock market, but on drivers of economic growth as well.”

Indeed, ZIRP seemed to pull stock markets higher, but the spreading of NIRP has coincided with a sharp global equity decline, particularly in financial stocks.

The Fed’s chances of going to NIRP seem, at least now, to be slim. Its policymaking arm, the Federal Open Market Committee, just hiked its interest target in December for the first time in nine years, so changing now would seem like a stunning retreat.

Yet several high-ranking officials recently have paid at least lip service to the idea.

In a speech last week, Fed Vice Chair Stanley Fischer said Europe’s experiment with negative rates is “working better than I expected,” raising speculation that should things deteriorate the U.S. central bank would consider going negative.

Negative rates in the U.S. would begin with the interest paid on excess reserves that banks store at the Fed, a number currently at $2.15 trillion that earns 0.5 percent interest. The idea would be to charge banks to store reserves, making the cost prohibitive to let the money lie fallow there and push it into the broader economy through lending, thus stimulating growth.
It’s an idea that works in theory and, for a period, worked in practice for the four European governments that tried it. However, there are problems.

One is that banks would need to make up that lost revenue someplace and instead of lending could amp up fees and rates. Another is that the more countries that join in, the less effective one nation’s low or negative interest rates are.

Finally, in a problem that would be especially acute in the U.S., negative rates could send a jolt through the $2.75 trillion money market space and, some fear, lead to a “break the buck” scenario that occurred during the financial crisis when one large money market fund couldn’t return par on its investments.

“Things would have to get truly desperate to go to negative rates,” Kim Rupert, managing director of global fixed income at Action Economics, said in an interview. “Our money markets are obviously the biggest in the world and have a lot of commitments tied to them and the liquidity for a lot of our economy. Jeopardizing the money markets would be too dramatic an effect for the Fed to consider going in that direction.”

Still, the futures market is indicating that if the Fed doesn’t move to outright NIRP, the chances for an aggressive rate-hiking policy ahead, as indicated after the December rate rise, are nil.

The CME’s FedWatch tool briefly went into a kind of backwardation Monday, indicating a -2 percent chance for a rate hike at the March FOMC meeting (the probability quickly moved back to plus-2 percent). The tool’s farthest date, February 2017, indicates just a 15 percent chance of an increase, the implication being no moves in 2016 even though the Fed’s “dot plot” of official projections points to four hikes this year.

The actual fed fund futures curve does not indicate a rate rise fully priced in until December 2017.

Michael Darda, chief economist and market strategist at MKM Partners, thinks the Fed would be wise to heed market signals and pay less attention to its models, including the Phillips curve guideline, that indicate a faster tightening cycle. The Fed’s moves to end ZIRP and quantitative easing, along with China’s decision to peg the yuan to the dollar, “has translated into a tightening world monetary policy” similar to what happened in the 1930s.

“The current risk is that policymakers are overly optimistic about the business cycle carrying on in a way that allows inflation to return to its target,” Darda said in a note to clients. “Given the U.S. dollar’s reserve currency status and the PBOC’s quasi peg, global monetary conditions have tightened sharply, causing world nominal growth expectations to weaken. There are some disturbing parallels to 1937, in our view, that should continue to be monitored closely.”

What the Fed will need to weigh ultimately is whether going to NIRP is worth risking its credibility, and whether low or negative rates will have any discernible effect on financial conditions. Bank stocks already are in a bear market, the economy is slowing and damage from the energy sector clearly is seeping into other parts of the economy.

Moving to NIRP now might be regarded as a panic reaction that actually could make things worse.

“I don’t think there are high odds that we’re going to fall into a recession this year, but what if we did?” said Jim Paulsen chief investment strategist at Wells Capital Management.

“If we went into recession now, when you had a zero short rate effectively and a sub-2 percent 10-year Treasury and a $4 trillion Fed balance sheet to spin out and a debt-to-GDP ratio that’s 100 percent on sovereign government debt, I think there would be a fair amount of panic in the cultural mindset because there would be a sense that we went into recession and there’s nothing anyone could do about it,” he added. “That’s a dangerous situation to put yourself in.”

http://www.cnbc.com/2016/02/09/from-zir … -move.html