News, Rumors and Opinions Sunday PM 7-3-2022
KTFA: Samson: 17 countries will default on debts, "Russia and Arab countries"
07/03/2022 19:34:23
It seems that the list of countries that are close to defaulting on their debts is rising in light of rising global inflation pressures, coinciding with the repercussions of the war between Russia and Ukraine, and the number of those countries may reach 17 countries.
According to a report issued by the Fitch Ratings Agency, the international rating agency warned that the list of defaulters or defaulters may expand to 17 countries out of a total of 100 countries that Fitch would like to cover their economic conditions. That list included Arab countries in addition to Russia, which has already stumbled according to international rating agencies and fell into the so-called technical stumble in light of Western sanctions and the freezing of nearly 330 billion dollars of the assets of the Russian Central, coinciding with preventing Russian banks from dealing in foreign currencies.
Russia and Arab countries
According to the Fitch report, the number of countries in the list of countries that are in default or whose bond yields in the financial markets indicate that this has happened is 17, which is a record level. These countries are Pakistan, Sri Lanka, Zambia, Lebanon, Tunisia, Ghana, Ethiopia, Ukraine, Tajikistan, El Salvador, Suriname, Ecuador, Belize, Argentina, Russia, Belarus and Venezuela.
According to the credit rating agency, most of the governments covered by Fitch have either brought in subsidies or implemented tax cuts in an effort to mitigate the impact of rising inflation. But this had its cost.
High interest pressures
Fitch Ratings has lowered its outlook for sovereign debt, due to concerns about rising global borrowing costs and the possibility of a new wave of defaults. The international rating agency, which monitors more than 100 countries, said the war in Ukraine was fueling problems such as high inflation, trade turmoil and weak economies, which are now hurting sovereign credit conditions. The head of the sovereign ratings unit at Fitch Agency, James McCormack, said that higher interest rates in light of the adoption of central banks to tighten monetary policy to counter inflation increases the costs of government debt service.
Rating Downgrade
Regarding the future outlook of Fitch Ratings Agency, the institution has reduced its outlook for the sovereign debt sector from positive or improving to neutral. The agency said in its report once again that the number of countries experiencing downgrades in their credit ratings increases this year with the increase in inflationary pressures, the increase in the number of government debts and the widening of the public budget deficits of countries. While the moderate financial deterioration can be absorbed by the positive effects of inflation on government debt mechanisms, such effects depend on maintaining low interest rates, and this is no longer certain," said the head of the sovereign ratings unit at Fitch. James McCormack added that while commodity exporters will benefit from higher prices, those who have to import the bulk of energy or food will suffer.
Russia
A few days ago, Russia fell into the trap of defaulting on debt for the first time in more than a quarter of a century, which Russian officials described as an artificial and unreal default, in light of the Russian authorities' announcement of their intention to pay debt dues in dollars. The credit rating agency, Fitch, downgraded Russia's sovereign debt rating from "B" to "C", in a decision that indicated that Moscow had defaulted on its debts. This followed the example of major rating agencies Standard & Poor's and Moody's, where the long-term Russian sovereign debt was reduced to junk. LINK
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Samson: Newspaper: 65 Trials And 30 Journalists Arrested In Turkey Within A Month
3rd July, 2022
Vice President of the Republican People's Party, Utku Çakirozar, revealed that 65 journalists were tried and 30 journalists were arrested in Turkey during the month of June
Cakir Ozar prepared a report entitled Press Freedom for the month of June, and reviewed it at a meeting held in the Turkish Parliament
Twenty-one journalists were arrested in Diyarbakir, 16 of those held for 8 days were convicted and imprisoned, and at least 65 journalists appeared before a judge in June
The report added that journalists Muhammed Arslan and Abdul Rahman Kok, who appeared before the judge, were sentenced to 3 years and 22 days in prison. The report also indicated that journalist Kerim Demiral and his son Mehmet Demiral were attacked while covering the discussion that took place during the protest to prevent the closure of Adana Şakirpaşa Airport
The report also noted the imposition of heavy fines by the Press Advertising Foundation and the Turkish Television, and the cutting off of advertisements from newspapers and television channels. The report stressed that the decision to block access to Deutsche Welle, the Turkish version and VOA, which is broadcast in Turkey, is a violation of press freedom, and is aimed at silencing these sites LINK
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Courtesy of Dinar Guru
Pimpy ...The rumor is Iraq is thinking about going to the gold standard which would be huge. But one of the things they want to do is they have to find a way to start lowering the number of dinars that are in circulation. The good news is that they're not going to replace the dinar which is the biggest fear. But what they're looking to do is reduce the amount in circulation. I have not heard how that's going to happen. [Post 1 of 2....stay tuned]
Pimpy ...A bunch of talk between people who deal with currencies. It's just rumors...The people I'm getting the information from as credible as they are it always makes me reluctant when there's nothing that I can use to validate what is being said. They have had a major increase in their gold reserves. That's a major major step...if you start seeing that the Iraqi government is indeed doing whatever it takes to reduce the amount of Iraqi dinars in circulation then you know that the rumor is true - that they are heading in the direction in which they want a gold backed currency. [Post 2 of 2]
Inflation Off, Recession On : It's not The Strongest Economy in The World
The Survival Economist: 7-2-2022
So this Not QE” Is Costing Every Man, Woman, & Child in America a whopping $183 Per Day. Fed is on track to commit $11.5 trillion in gross cumulative support.
Minsky - Moment comes when stability begets sudden instability. This hundred and eighty-three dollars a day every man woman and child in America is paying; that's this QE4 or what Powell called not QE. Thanks to the benevolent powerful steering committee at the FOMC, the federal open markets committee.
So we have established the price of peace; we have found the price of calm at this moment: sixty billion dollars a month, roughly two billion dollars a day. And again if that seems like an expensive habit or you know what it would take to kind of maintain a perpetual buzz. You just look at that national addiction divided by every man woman and child. It's a measly hundred and eighty-three dollars a day every day. That's what's costing every and each American citizen. Which at some point, if we're not careful is merely gonna be the cost of a cup of coffee.
Nothing called free is free. Free is something you get for nothing, but somebody else pays for it. Everyone is going to be working to pay the interest on all the loans. No wonder the banks rake in so much money. Banks screw up a system. The government bails out Banks with taxpayer money. Banks continue to act irresponsibly. Government prints money to give to banks to directly inject into the stock market. Banks screw up the stock market with the taxpayer, money bailout, and QE money printing And probably steal half of Americans 401K by the end.
It looks like the balance sheet of the Fed grew by 260 billion, and it is growing. Remember, the balance sheet was only 800billions before the crisis and grew to over 4 trillion with the promise that it will be unwound.
Well, it didn’t, so they monetized just over 3 trillions of debt. Why isn’t the Fed using the discount window to lend to those entities that can’t manage their cash flow?
Why are they getting free money from the Fed? If I don’t have enough cash to do my payroll at the end of the month, no one will make me a 1% interest loan. So why is the Fed subsidizing those speculators? And who are they?
One question that remains unanswered is what sparked the Repo panic. I still believe a block of cash left the market and has not yet returned. Well, who took the cash? Was there a robbery? Were the police called in to investigate JP Morgan Chase? The banks had a good thing going, squeezing the repo borrowers. The fed stepped in and took away their rice bowl. Big banks are the Fed. Now figure it out yourself.
The banks own the FED. The FED does what the owners tell it to do. It's funny to watch these big banks extort the Fed. The Big banks ARE the Fed. They're being bailed out as we speak. That's what the repo madness is: a bailout. Could it be Deutsche Bank that is the black hole that's sucking liquidity?
Banks can take the Fed hostage now since the world banks are all intertwined. These are not overnight loans anymore. Some of them last weeks. And some of them that have already come due have been given extensions. What was once an occasional infusion of liquidity on a 24-hour basis is now a continual process with no money or time limit for payback. It is a rolling bailout of immense proportions. A filthy mess that is being kept under wraps.
Wall Street knows. We all know what that means. Banks are holding the Fed hostage now. Give us liquidity (free money) or else. The corollary to that is that some banks don't trust other banks for an overnight loan, even at loan-shark rates. And their fears are substantiated when the Fed extends the repayment time.
There are a lot of rotten apples out there. A bank in China can say to the Fed, "give us liquidity in dollars, or we will crash the financial system"! All crisis is every time is a lack of liquidity; that's what financial crisis always is. So what they do; they just create out of thin air the liquidity.
But what bothers me is; we're not talking about side joint kinds of countries. We're talking about the two most powerful countries in the world, the United States and China.