Goldilocks' Comments and Global Economic News for Wednesday, August 30, 2023
Good afternoon Dinar Recaps,
Goldilocks posted comments and news links on the global financial system
Oil’s historic price surge in 2008 will look like ‘child’s play’ compared with the expected copper boom by 2025, Citi says
“Copper’s eventual bull run is likely to make oil’s famous 2008 rally look like child’s play,”
https://finance.yahoo.com/amphtml/news/oil-historic-price-surge-2008-175714965.html
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US House Financial Services members scold Fed’s Powell for stablecoin bill obstruction
The committee members suspect the Fed is trying to hold up Congressional efforts to pass stablecoin legislation by restricting banks’ actions.
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Banks Train AI as the New Financial Advisers
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Banking Announcement:
We talked about the banks wanting more requirements about a week ago. Now, they have moved to a proposal stage.
They are proposing new resolution plans regarding debt rules for banks. In a nutshell, large Banks are raising their long-term debt issuance to around 70 billion along with more detailed resolution plans.
Basically, the FDIC wants regional banks to be more prepared for any failures going forward.
Many of the mid-sized to smaller banks will not be able to handle this new capital requirement. This is why we are witnessing many of them consolidating to larger banks. In other words, banks are still in the midst of reforms leading to a reset into full Basel 3 compliance.
This will put the banking system into alignment with the new SOFR lending settings activated on July 1st, 2023 synchronizing the markets and the banks. Look for tokenized assets to be activated during this transition causing the markets and banking system to move into unison with real values.
The rising values on gold will formulate new price patterns leading to a repricing event bringing forth solid debt-to-equity ratios inside all sectors of the new digital asset-based trading system.
© Goldilocks
Bloomberg Law Link
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FDIC Announcement:
The Federal Deposit Insurance Corporation (“FDIC”) gave notice that its Board of Directors will meet next week with the following discussion agenda:
Memorandum and resolution re: Notice of Proposed Rulemaking on Long-term Debt Requirements for Large Bank Holding Companies, Certain Intermediate Holding Companies of Foreign Banking Organizations, and Large Insured Depository Institutions.
Memorandum and resolution re: Resolution Plans Required for Insured Depository Institutions with $100 Billion or More in Total Assets; Informational Filings Required for Insured Depository Institutions with At Least $50 Billion, but Less Than $100 Billion in Total Assets.
Memorandum and resolution re: Publication of Proposed Guidance for Dodd-Frank Act Resolution Plan Submissions of Triennial Full Filers.
Memorandum and resolution re: Conditions to Certain Receivership Delegations of Authority and Procedures.
Memorandum and resolution re: Board Approval of Midsized and Large Failed Bank Sales.
https://www.jdsupra.com/legalnews/fdic-to-meet-next-week-on-a-number-of-4378639/
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Gold is superior money, and tokenized gold a superior currency – ZeMing M. Gao
https://zemgao.com/gold-is-superior-money-tokenized-gold-is-a-superior-currency/
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Gold will play a big role in the coming global 'monetary reset' as U.S dollar loses its dominance - Maxime Bernier | Kitco News
Kitco Link
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The Second Circuit Agrees: Loans are Not Securities
"In its decision, the Second Circuit agreed with the District Court and, applying the Reves test, determined that the loans are distinguishable from other instructions that qualify as securities."
For now, the banking system has determined that loans qualify as securities.
These collateralized loans enable the banking system to make money on loans that do not get paid or do get paid based on the backing of these loans by collateralized assets.
What a win-win situation for everyone. I know we talked about this a week ago, but this new determination moving into law solidifies what we saw coming.
© Goldilocks
https://www.jdsupra.com/legalnews/the-second-circuit-agrees-loans-are-not-1509207/
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Banks are in the proposal phase of their banking reforms. What this means is they have made an offer that will move them towards new transactions based on Basel 3 compliance requirements.
The next phase will be to test these new requirements inside the markets. This will call shifts in prices all over the stock market as well as the commodity sector.
It is an attempt to find a balance between debt-to-equity ratios that work. Once new ratios are formulated, we will see final rules and comments come into play by the end of November per articles shared in this room a few weeks ago.
The month of December is when the banking system closes their books on the year. It is a time when banks make changes and adjustments to prepare for the new year.
© Goldilocks
Law Insider Link
Investopedia Link
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Digital Commerce Applications Market May See a Big Move | IBM, Salesforce, Cognizant Technology Solution, Oracle
https://www.openpr.com/news/3186704/digital-commerce-applications-market-may-see-a-big-move-ibm
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IBM – Putting technology to work in the real world | CIO
https://www.cio.com/article/650618/ibm-putting-technology-to-work-in-the-real-world.html
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What can enlarged BRICS achieve? - Tehran Times
https://www.tehrantimes.com/news/488477/What-can-enlarged-BRICS-achieve
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Why the US money supply is shrinking for the first time in 74 years
https://www.goldmansachs.com/intelligence/pages/why-the-us-money-supply-is-shrinking.html
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The Internal Revenue Service has awarded two companies positions on a potential four-year, $2.1 billion contract vehicle to help that agency roll out new electronic payment systems for use by taxpayers.
https://washingtontechnology.com/contracts/2023/08/irs-awards-2b-electronic-payment-system-contract/389789/
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The Most Splendid Housing Bubbles in America, August Update: 4th YoY(year over year) Price Drop Overall, 10 of 20 Cities with YoY Drops. Month-to-Month, Selling Season Begins to Fade | Wolf Street
https://wolfstreet.com/2023/08/29/the-most-splendid-housing-bubbles-in-america-august-update-4th-yoy-price-drop-overall-10-of-20-cities-with-yoy-drops-selling-season-begins-to-fade/
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