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Daily Dispatches
Alasdair Macleod: Deflating the credit bubble
Submitted by admin on Fri, 2023-03-31 13:30 Section: Daily DispatchesBy Alasdair Macleod
GoldMoney, Toronto
Friday, March 31, 2023
The theme of this article is debt deflation. How likely is it that the downturn in broad money supply will continue, and if so, why? And what are the consequences?
The major central banks have increasingly resorted to interest rate management as their principal means of demand management. Yet history shows little correlation between managed interest rates and the growth of credit, which is represented by broad money statistics.
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Gillian Tett: Prepare for a multipolar currency world
Submitted by admin on Thu, 2023-03-30 19:59 Section: Daily DispatchesBy Gillian Tett
Financial Times, London
Thursday, March 30, 2023
https://www.ft.com/content/f8f3b2cd-6690-4f26-b81e-e972751c8799
This month, Russia and China are sparking new jitters in Washington. That is primarily because of their stage-managed displays of diplomatic unity, around Ukraine and much else.
U.S. money supply falling at fastest rate since 1930s
Submitted by admin on Thu, 2023-03-30 12:59 Section: Daily DispatchesBy Jamie McGeever
Reuters
Thursday, March 30, 2023
U.S. money supply is falling at its fastest rate since the 1930s, a red flag for the economy and financial markets.
Money supply has now been shrinking year-on-year since December, an unprecedented development in modern times that should make investors sit up and take notice -- growth, asset prices and inflation could all weaken.
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Germans shun deposits abroad on fear of new crisis
Submitted by admin on Thu, 2023-03-30 12:32 Section: Daily DispatchesBy Francesco Canepa
Reuters
Thursday, March 30, 2023
FRANKFURT, Germany -- German savers are getting cold feet about deposits held abroad despite juicier interest rates for fear of getting embroiled in a crisis like the one that hit Silicon Valley Bank, data compiled for Reuters shows.
German households, who have Europe's deepest pockets with 2 trillion euros held in cash, had been seeking higher returns on their cash by opening deposits online at small banks in weaker economies such as Lithuania, Malta, Italy, and Portugal.
Pam and Russ Martens: Four U.S. mega-banks have more than $3 trillion in uninsured deposits
Submitted by admin on Thu, 2023-03-30 12:14 Section: Daily Dispatches12:10p ET Thursday, March 30, 2023
Dear Friend of GATA and Gold:
Pam and Russ Martens of Wall Street on Parade report today that four of the biggest banks in the United States -- JPMorganChase, Bank of America, Wells Fargo, and Citibank -- collectively hold more than $3 trillion in uninsured deposits.
Good thing the U.S. banking system is sound -- and that the U.S. government itself is too.
China and Brazil agree to ditch dollar for bilateral trade
Submitted by admin on Wed, 2023-03-29 22:02 Section: Daily DispatchesFrom Agence France-Presse
via Barron's, New York
Wednesday, March 29, 2023
https://www.barrons.com/news/china-brazil-strike-deal-to-ditch-dollar-for-trade-8ed4e799
China and Brazil have reached a deal to trade in their own currencies, ditching the U.S. dollar as an intermediary, the Brazilian government said today, Beijing's latest salvo against the almighty greenback.
Bank of England calls for urgent action on funds that nearly toppled UK financial system
Submitted by admin on Wed, 2023-03-29 12:56 Section: Daily DispatchesBy Julia Horowitz
CNN, New York
Wednesday, March 29, 2023
LONDON -- The Bank of England has called for urgent action to address a weak spot in the UK financial system as persistent worries about the global banking sector threaten to unleash fresh market turmoil.
The central bank said today that UK banks had enough financial resources to avoid shocks but the pensions regulator needed to move "as soon as possible" to increase the resilience of liability-driven investment funds.
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Saudi Arabia set to join anti-West bloc with China and Russia
Submitted by admin on Wed, 2023-03-29 11:25 Section: Daily DispatchesBy Campbell MacDiarmid
The Telegraph, London
Wednesday, March 29, 2023
Saudi Arabia is joining an anti-Western influence bloc formed by Russia and China, in a sign of Riyadh's deepening ties with Beijing as the U.S. pivots away from the Middle East.
The kingdom's cabinet approved a plan to join the Shanghai Cooperation Organisation as a "dialogue partner," a precursor to being granted full membership, state news agency SPA announced today.
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SVB's collapse shows the world's favorite safe asset isn't risk-free
Submitted by admin on Wed, 2023-03-29 11:10 Section: Daily DispatchesBy Liz McCormick, Ben Holland and Edward Harrison
Bloomberg News
Wednesday, March 29, 2023
Look deeper into the latest U.S. banking crisis and the cause may come as a surprise to anyone still thinking in terms of the crash of 2008.
It wasn't dodgy loans to impecunious homebuyers that sank Silicon Valley Bank. It was a stash of what are thought to be the safest securities on Earth: U.S. Treasuries.
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Pam and Russ Martens: Stampede into govt. money-market funds foils Fed's effort to raise rates
Submitted by admin on Mon, 2023-03-27 11:53 Section: Daily DispatchesBy Pam and Russ Martens
Wall Street on Parade
Monday, March 27, 2023
On Sunday Financial Times reporters Brooke Masters, Harriet Clarfelt and Kate Duguid published an article under the headline: "Money market funds swell by more than $286 billion as investors pull deposits from banks." ...
The Financial Times article is talking about the uninsured money market funds.
So why would Americans be flocking to these uninsured money market funds during the latest banking panic?
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