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More confirmation that the world economy – the real economy that is – is grinding to a halt.
The
emphasis changes from day- to-day. One day it is World War 111;
another it is dire news about abrupt climate change or the sixth mass
extinction.
Today
it is the collapse of the economy.
Just don't look for confirmation from television or your local newspaper.
China Orders Banks To Drop The U.S. Dollar
China
have suspended their banks from the Foreign Exchange markets and
ordered them to stop buying U.S. Dollars.
11
January, 2015
China’s
foreign exchange regulator has ordered bank’s to limit the
purchases of U.S. dollars for at least one month in an attempt to
stem capital outflows.
Superstation95.com reports:
The
move comes as China reported its biggest annual drop in foreign
exchange reserves on record in 2015, while the central bank has
allowed a sharp slide in the Yuan currency to multi-year lows,
raising fears of more capital flight.
All
banks in certain trading hubs, including Shenzhen, received the order
recently, the people added. They declined to be identified because
they are not allowed to speak to the media.
The
total amount of U.S. dollars sold to clients in January for a bank in
one of these hubs cannot exceed the amount sold in December,
according to the people.
“They
have asked us to limit our purchase amount and there are targets, but
it mainly relates to institutions and enterprises, there is no change
to the policy on individuals,” said one person.
Officials
at State Administration of Foreign Exchange did not immediately
respond to comment.
China
also suspended forex business for some foreign banks, including
Deutsche, DBS and Standard Chartered at the end of last year.
While
three sources for this story claim they were told that this is an
effort to stem the outflow of capital, a different source says
something altogether different is taking place: the belief in
China that the US Dollar is now worthless and will soon totally
collapse as a currency, leaving everyone who holds dollars, broke.
That’s why China is doing everything it can to shed US Dollar
currency. The way it’s being done, however, is a “useful
guise” for the Chinese to prevent the collapse from taking
place too early and leaving them stuck with trillions in useless US
dollars.
CHINA ORDERS BANKS TO STOP PURCHASING U.S. DOLLARS
In
a stunning move, China has suspended some banks from Foreign Exchange
markets and ordered other banks to stop buying Dollars.
China's
foreign exchange regulator has ordered banks in some of the country's
major import and export centers to limit purchases of U.S. dollars
this month, three people with direct knowledge said, in the latest
attempt to stem capital outflows.
The move comes as
China reported its biggest annual drop in foreign exchange reserves
on record in 2015, while the central bank has allowed a sharp slide
in the Yuan currency to multi-year lows, raising fears of more
capital flight.
All
banks in certain trading hubs, including Shenzhen, received the order
recently, the people added. They declined to be identified because
they are not allowed to speak to the media.
The total
amount of U.S. dollars sold to clients in January for a bank in one
of these hubs cannot exceed the amount sold in December, according to
the people.
"They
have asked us to limit our purchase amount and there are targets, but
it mainly relates to institutions and enterprises, there is no change
to the policy on individuals," said one person.
Officials
at State Administration of Foreign Exchange did not immediately
respond to comment.
China also suspended forex business for some
foreign banks, including Deutsche, DBS and Standard Chartered at the
end of last year.
While
three sources for this story claim they were told that this is an
effort to stem the outflow of capital, a different source says
something altogether different is taking place: the belief in
China that the
US Dollar is now worthless and will soon totally collapse as a
currency,
leaving everyone who holds dollars, broke.
That's why China is
doing everything it can to shed US Dollar currency. The way
it's being done, however, is a "useful guise" for the
Chinese to prevent the collapse from taking place too early and
leaving them stuck with trillions in useless US dollars.
The move comes as China reported its biggest annual drop in foreign exchange reserves on record in 2015, while the central bank has allowed a sharp slide in the Yuan currency to multi-year lows, raising fears of more capital flight.
The total amount of U.S. dollars sold to clients in January for a bank in one of these hubs cannot exceed the amount sold in December, according to the people.
Officials at State Administration of Foreign Exchange did not immediately respond to comment.
"Nothing Is Moving," Baltic Dry Crashes As Insiders Warn "Commerce Has Come To A Halt"
11
Janaury, 2015
The
continued collapse of The Baltic Dry Index remains ignored by most -
besides we still have Netflix, right? But, as Dollar
Vigilante's Jeff Berwick details,
it appears the worldwide 'real' economy has ground to a halt!!
Last
week, I received news from a contact who is friends with one of the
biggest billionaire shipping families in the world. He told me
they had no ships at sea right now, because operating them meant
running at a loss.
This
weekend, reports are circulating saying much the same thing: The
North Atlantic has little or no cargo ships traveling in its waters.
Instead, they are anchored. Unmoving. Empty.
You
can see one such report here.
According to it,
Commerce between Europe and North America has literally come to a halt. For the first time in known history, not one cargo ship is in-transit in the North Atlantic between Europe and North America. All of them (hundreds) are either anchored offshore or in-port. NOTHING is moving.
This has never happened before. It is a horrific economic sign; proof that commerce is literally stopped.
We
checked VesselFinder.com and
it appears to show no ships in transit anywhere in the world. We
aren’t experts on shipping, however, so if you have a
better site or source to track this apparent phenomenon, please
let us know.
If
true, this would be catastrophic for world trade. Even if it’s not
true, shipping is still nearly dead in the water according to other
indices. The Baltic Dry Index, an assessment of the price of
moving major raw materials by sea, was already at record all-time
lows a month ago... and in the last month it has dropped even more,
especially in the last week. Today BDIY hit 415...
Factories
aren’t buying and retailers aren’t stocking. The ratio of
inventory to sales in the US is an indicator of this. The last
time that ratio was this high was during the “great recession” in
2008.
Hey,
Ms. Yellen, what recovery? The economy is taking on water at a rapid
rate.
The
storm has been building for some time, actually. Not so
long ago, there was a spate of reports that the world’s automobile
manufacturers were in trouble because cars were not selling and
shipments were backing up around the world.
ZeroHedge
reported on it this way:
In the past several years, one of the topics covered in detail on these pages has been the surge in such gimmicks designed to disguise lack of demand and end customer sales, used extensively by US automotive manufacturers, better known as “channel stuffing”, of which General Motors is particularly guilty and whose inventory at dealer lots just hit a new record high.
Here
is a photo of unsold cars in the United Kingdom from that article.
The
world’s economy seems in serious trouble. You can’t print your
way to prosperity. All you are doing is hollowing out your economy.
Draining it. And sooner or later it’s empty and you have to start
over after a good deal of crisis and chaos.
It’s
no coincidence that China is struggling desperately to contain a
stock implosion. Reportedly, banks have been told they are
forbidden to buy US dollars and numerous Chinese billionaires have
gone missing. And the markets have just opened on Monday and
are again deeply in the red.
Here
at The Dollar Vigilante we’ve specialized in explaining the reality
of the global faux-economy and why it’s important that you not
believe mainstream media lies.
In
the meantime, keep your eye on this shipping story! If it is
true and worldwide shipping is disastrously foundering, it’ll only
be a matter of days before grocery store shelves will reflect that
with increasingly bare shelves.
Are
people upset now? Just wait. Interruptions in goods and services,
most critically food, almost happened in 2008 during the Great
Financial Crisis. For three days worldwide shipping was
stranded due to shipping companies not knowing whether or not
the receiver’s bank credit was good.
That
crisis was staved off due to a massive amount of money printing. It
was a temporary stay of execution, like bailing out the Titanic with
coffee cups, however, and one that may reach much larger proportions
in 2016.
Sailors
watch the weather to see if it is safe to set sail. Investors
should be watching the economic climate with the same intensity.
We
are already sailing through very stormy waters.
WTI Crude Collapses To $30 Handle, Stocks Plunge As Rate-Hike Odds Tumble
With
rate hike odds for March plunging from over 55% a week ago to just
38% now, it appears faith in The Fed has utterly failed. WTI
traded down to $30.97 - the lowest ssince Dec 2003.
Fed
#Fail...
WTI
punched lower to a $30 handle for the first time since December
2003..
and
that has dragged stocks back into the red...
China's Hard Landing To Trigger Meltdown In India: "We Will See Another Crisis"
China stock slump deepens despite Beijing efforts
© Kim
Kyung-Hoon / Reuters
RT,
11
January, 2016
The
Shanghai Composite plummeted 5.33 percent on Monday, continuing last
week’s nearly ten percent drop that erased all the gains of last
year. The latest collapse came after the People's Bank of China
surprised markets by announcing a stronger than expected yuan fixing.
The
country's central bank set the yuan-dollar exchange rate at 6.5626 on
Monday, which is lower than Friday’s 6.5636.
The
Shenzhen Stock Exchange Composite Index fall was even steeper at 6.6
percent.
Chinese
stocks have dragged down other Asian markets. Hong Kong's Hang Seng
and Japan's Nikkei closed 2.76 and 0.39 percent down, respectively.
In
the first week of 2016, China's central bank depreciated the yuan
against the dollar by more than 1.5 percent. It is the biggest drop
in the yuan exchange rate since August 2015, when the devaluation of
the Chinese currency strongly affected global stock markets.
Key
Russian indices are deep in the red on Monday, as well. The
dollar-denominated RTS Index was down 4.36 percent, while the
ruble-traded MICEX was losing 3.32 percent as of 2:00pm MSK.
European
stocks advanced on Monday after their worst week since 2011. As of
10:40am GMT, London’s FTSE 100 was up 0.18 percent, while France’s
CAC 40 rose 0.66 percent and the German DAX was 0.76 percent in the
green.
“The
market reaction to what’s been happening in China has been hugely
overdone,” Peter
Dixon, Commerzbank AG’s global equities economist in
London told Bloomberg.
“The
uncertainty hasn’t dissipated - it only takes one or two things to
go wrong and we’re back to where we started - but investors are
finally looking at things with a clearer head,” he
said.
Last
week, Bank of America Merrill Lynch predicted the Shanghai Composite
will plummet by nearly 30 percent in 2016.
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