More News, Rumors and Opinions Thursday Afternoon 11-11-2021
Restored Republic via a GCR: Update as of Thurs. 11 Nov. 2021
Compiled Thurs. 11 Nov. 2021 12:01 am EST by Judy Byington
“Washington DC has indicated that everything is set to go. They have made sure there were no issues that may cause this to get delayed again. The release was anticipated anytime for the go signal from the US Department of Defense. We were informed that an 80 page manual on the QFS should be received later.” …Green Lantern
Judy Note:
What We Think We Know as of Wed. 10 Nov. 2021:
Thurs. 11 Nov. (11/11) appeared to be a significant day for the Global Currency Reset.
With the US consumer price index jumping 6.2%, the Russian Real Estate company Evergrande’s fast upcoming bankruptcy was expected to kick off the final meltdown of the Global Financial System.
There were presently 111 container ships floating off California ports waiting to be unloaded, adding to the food, goods and fuel shortages that were fueling high inflation.
Global Currency Reset:
MarkZ: My contact in Zurich was paid on his Historic Bonds on Mon. 8 Nov.
Some CMKX folks received spendable money on that same Mon. 8 Nov.
Apparently the bond payouts have continued throughout the week and through today, Wed. 10 Nov. money has been moving.
I have been told from a number of banking contacts that they have now set the timing schedule to finish things.
After meetings on Wed. 10 Nov. a Redemption Center contact said they were 100% certain they would be working this weekend.
Wed. 10 Nov. Isaac: Liquidity may start Thurs. 11 Nov.
Judy: A very credible source in Tier 3 has been notified that they would receive liquid funds on Thurs. 11 Nov. He said that Yellow Dragon Bonds were being paid out this week.
Bruce: Three lead banks have reported thatTier 4B (us, the Internet Group) would go right after the Bond Holders, but would not have to wait for all Bonds to be paid out. Tier 4B should be underway by Veterans Day Thurs. 11 Nov.
Read full post here: https://dinarchronicles.com/2021/11/11/restored-republic-via-a-gcr-update-as-of-november-11-2021/
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Courtesy of Dinar Guru
Frank26 Article: "Basra University organizes a panel discussion on the project to delete zeros from the Iraqi currency" This is an announcement from the Central Bank of Iraq at the University of Basra telling the Iraqi citizens as plain as English can be, as plain as Arabic can be, 'We are lifting the value of your currency. We are removing the 3-zero notes. We did this. We accomplished it. It was a long study...do you mind if we add value to your currency? Do you mind if we introduce to you a new denomination that would match that currency? Do you mind if we enter the digital world of transactions to be internationally recognized and grow as a currency mega force in the Middle East? Do you mind any of this Iraqi citizens?'
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KTFA:
Samson: Evergrande heads off default, NYT claims
11th November, 2021
China Evergrande Group may have succeeded in heading off default once again, New York Times said in an article late Wednesday after the earlier announcement that the company, indeed defaulted.
The property giant “made interest payments on at least two of its bonds on Wednesday, a company bondholder said, a sign that it yet again managed to head off default,” New York Times journalist Lauren Hirsch said in the piece.
“Evergrande owed investors interest payments totaling nearly $150 million on three bonds, with the grace periods for those payments set to expire on Wednesday.”
Evergrande, the world's most indebted developer, has been stumbling from deadline to deadline in recent weeks as it grapples with more than $300 billion in liabilities, $19 billion of which are international market bonds.
The company has not defaulted on any of its offshore debt obligations – yet. But a 30-day grace period on coupon payments of more than $148 million on its April 2022, 2023 and 2024 bonds ended on Wednesday.
The failure to pay results in a formal default by the company, and triggers cross-default provisions for other Evergrande dollar bonds, exacerbating a debt crisis looming over the world's second-largest economy.
For its two separate offshore coupon payment obligations that were due in late September, the developer's bondholders did not receive the payments until one working day after the 30-day grace periods ended.
Evergrande's problems add to concerns about a liquidity squeeze in the property sector. It also has coupon payments totaling more than $255 million on its June 2023 and 2025 bonds due on Dec. 28.
China's property woes rattled global markets in September and October. There was a brief lull in mid-October after Beijing tried to reassure markets the crisis would not be allowed to spiral out of control. But concerns have resurfaced, with the U.S. Federal Reserve warning on Tuesday that China's troubled property sector could pose global risks.
More developers are seeing their credit ratings slashed on their worsening financial profiles.
Moody's Investors Service on Wednesday downgraded Kaisa Group, which on Tuesday made a desperate plea for help, citing liquidity risks, limited financial flexibility and weak recovery prospects for its creditors.
Kaisa has the most offshore debt of any Chinese developer, after Evergrande. The developer has coupon payments of more than $59 million due on Thursday and Friday.
S&P Global Ratings said separately it had downgraded Shimao Group Holdings' rating to "BB+" from "BBB-" over concerns that tough business conditions would hinder the company's efforts to reduce debts. S&P considers a rating under "BBB-" to be a speculative grade.
Worries over the potential fallout from Evergrande have also slammed the bonds of Chinese real estate companies amid worries the crisis could spread to other markets and sectors.
Shares of developer Fantasia Holdings plunged 50% on Wednesday after it said there was no guarantee it would be able to meet its other financial obligations following a missed payment of $205.7 million that was due on Oct. 4. LINK
IMPORTANT UPDATES: Global GDP Is PLUMMETING And REAL WAGES ARE CRATERING.
Greg Mannarino: Nov 11, 2021
Lyn Alden: Supply Shortages are Masking Real Inflation
Palisades Gold Radio: Nov 11, 2021
Lyn discusses the massive increase in money printing coupled with shortages in goods and commodities. Prices have experienced disinflation due to globalization for a considerable period and now that is ending.
The CPI metrics include hedonic adjustments that are masking some of the inflation in goods. Lyn discusses the bottlenecks being created due to semiconductor shortages.
Semiconductors are essential and shortages are having an outsized effect on the production of vehicles for example.
Factories that produce semiconductors are expensive and therefore new supply takes time. Energy is often directly correlated with inflation. Lyn discusses why fossil fuels will remain important.
She notes that the world has never phased out an energy source but simply added new forms to the existing paradigm. We still use coal and biomass globally. Wind and solar work well for augmenting the grid but become challenging when the weather is calm and cloudy.
Grid-scale energy storage solutions so far are resource-intensive and remain impractical. However, there has been an uptick in interest in nuclear energy which is hopeful.
Inflation today is not uniform as some countries like Japan that have not printed money recklessly are doing okay.
Value stocks tend to outperform growth stocks in periods of weak economic activity. This trend generally shifts around recessions and changes in monetary policy. Lyn expects the Feds' policy to remain largely the same and much will depend on the fiscal policy of the U.S. government.
She believes they will be successful at tapering for a while. What will be interesting is their choice of policy when we reach the next crisis. Lyn discusses the economic similarities of the present to that of the 1940s. Inflation will likely move in pulses and will include periods of deflation.