In Latest Liquidity Flood; ECB Hands Out A Record €1.3 Trillion In Negative Yielding TLTRO-III Loans

in-latest-liquidity-flood;-ecb-hands-out-a-record-e1.3-trillion-in-negative-yielding-tltro-iii-loans

18-06-20 06:29:00,

Lost in the noise of the near-infinite liquidity tsunami earlier today the ECB announced the results of the latest TLTRO-III auction: in it €1.3 trillion was taken up by 742 banks, a take-up which Goldman called “significant”, with demand driven by i) replacing existing facilities which were maturing (we estimate €760 bn); ii) net new take-up (€550 bn).

Furthermore, as Goldman notes, it is also apparent that the generous financial terms of this facility (-1% for Year 1, -0.5% for Years 2-3), with fixed rate/full allotment, more than offseting any associated stigma. All in, this auction was important from the perspective of overall financial stability, and, on the margin, supportive of bank revenue. The next auction, on the same terms, is on September 24, with subsequent auctions running quarterly until March 2021.

As a reminder, the main benefit to bond markets is the TLTRO “carry trade”, where banks are expected to use the cheap ECB loans – which pay the borrower to take out a loan – to buy higher yielding assets such as short-dated Italian government bonds.

German 10-year government bond yields were unchanged at -0.42%. Italian 10-year yields were also unchanged at 1.37%.

Courtesy of Goldman, here are the four key takeaways from today’s TLTRO:

1. Volume is very high at €1.3 trn. With this take-up, banks are

  • replacing c.€760 bn (GSe) of weekly LTRO / TLTRO-II and
  • adding some €550 bn of net liquidity.

The replacement of existing facilities consists of two main parts:

  • the weekly LTRO, designed in March as a bridge between emergency liquidity measures and today’s auction; our expectation therefore was that the entirety of this legacy facility would be rolled into today’s auction;
  • and the portion of TLTRO-2 maturing later this month (June 24).

Given improved terms (-1% for YR1 until June 2021, and -0.5% for YR2-3 if lending benchmarks criteria are met) starting with this auction, banks were expected to repay some outstanding TLTRO-II early to refinance at cheaper rates. Taken together, this still leaves some €550bn of net new take-up.

2. Usage is broad = stigma is not there.

 » Lees verder

Latest American Criminality a Serious Threat to World Peace | New Eastern Outlook

latest-american-criminality-a-serious-threat-to-world-peace-|-new-eastern-outlook

10-01-20 09:59:00,

USTRO342

The world became a measurably more dangerous place last week with the United States murder of Iranian Major General Qassem Saleimani and at least eight other prominent individuals including the SMU leader Abu Mahdi al-Muhardis.

Since the murder an increasing number of facts have emerged that cast particular insight into the conduct of the United States political leadership. These revelations will have a significant impact on the way in which the United States is viewed, not only in the Middle
East, but throughout the wider world.

The first fact to emerge in the aftermath of Saleimani’s killing was that he was on a diplomatic mission (in fact travelling on a diplomatic passport) with the knowledge and presumed approval of the United States.

Saleimani was carrying documents that represented what might be termed tentative peace overtures from the Saudi Arabian government to the government of Iran. This of itself was a startling fact. Suspicion, distrust and animosity between Saudi Arabia and Iran has its origins
in the often bitter conflict between the two major sectors of the Islamic faith, Sunni and Shia, of which Saudi Arabia and Iran were respectively two of the principal antagonists.

Saudi Arabia has also been the principal Arab supporter of the United States, and has spent hundreds of billions of dollars on US military equipment. The disastrous Saudi attack on Yemen suggests that the money was not well spent. Despite boastful claims by Trump about
the alleged superiority of United States weaponry, a myth exploded in President Putin’s address to the Russian Parliament in March 2018, the Saudis have been singularly unsuccessful in overcoming the desperately poor Yemeni people and their successful resistance despite being heavily outgunned.

One possible reason for the Saudis apparent change of attitude toward Iran is that they have been conned, at massive expense, by United States claims of military supremacy.

It is also highly likely that the Saudis have finally come to accept that the Americans do not have the least interest in Saudi Arabia per se. The sole United States motivation is to retain control of the oil fields.

Further proof of this has been United States conduct in both Syria and Iraq. There is absolutely no foundation in international law for the United States military presence (and that of its tame acolyte Australia) or the British and French presence in Syria.

 » Lees verder

The Latest Numbers Tell Us That The Global Economic Slowdown Is Accelerating Dramatically

the-latest-numbers-tell-us-that-the-global-economic-slowdown-is-accelerating-dramatically

25-09-19 09:19:00,

Authored by Michael Snyder via The Economic Collapse blog,

Economists are already predicting “the world’s lowest growth in a decade”, but it is beginning to look like what we will be facing will be much worse than that. 

In recent days, numbers have been coming in from all over the planet that are absolutely abysmal.  The “global economic slowdown” is rapidly transitioning into a new global economic crisis, and central banks seem powerless to stop what is happening.  They have already pushed interest rates to the floor (actually below the floor in many cases), and over the past decade they have absolutely flooded the global economy with new money.  But despite all of this unprecedented intervention, economic conditions are deteriorating at a pace that is breathtaking.

Let’s start by taking a look at what is happening in India.  According to CNN, vehicle sales in India fell a whopping 31 percent in July…

Just two years ago, India’s huge car market was booming and global players were rushing to invest. Now it’s been slammed into reverse.

Sales of passenger vehicles plunged 31% in July, according to figures released by the Society of Indian Automobile Manufacturers (SIAM) on Tuesday. It’s the ninth straight month of declines and the sharpest one-month drop in more than 18 years, SIAM Director General Vishnu Mathur told CNN Business.

Those are numbers you would expect to see if we were in the middle of a full-blown economic depression, and it is being projected that this downturn “could result in a million people being laid off”

The slump has prompted companies to slash over 330,000 jobs through the closing of car dealerships and cutbacks at component manufacturers, Mathur said, citing data from industry associations that govern those two sectors.

The Automotive Component Manufacturers Association of India warned in a statement last month that its “crisis-like situation” could result in a million people being laid off.

A million jobs is very serious.

And we are talking about just one industry in one country.

How many jobs will ultimately be lost all over the world in the months ahead?

 » Lees verder

The Latest Victim in the Crucifixion of Julian Assange

the-latest-victim-in-the-crucifixion-of-julian-assange

25-08-19 12:31:00,

The case of Ola Bini, a Swedish data privacy activist and associate of WikiLeaks founder Julian Assange, has been shrouded in mystery since his arrest in Quito, Ecuador, on April 11. He was detained on the same day Assange was forcibly removed from the Ecuadorian Embassy in the United Kingdom, inevitably raising questions about whether Bini was being held because of his connection with Assange and whether the United States was involved in the case in some form.

Bini, who initially wasn’t charged with a crime, was accused of being involved in a leak of documents that revealed that Ecuador’s right-wing president, Lenin Moreno, had several offshore bank accounts. Bini was released after two months in an Ecuadorian prison under terrible conditions but is still fighting to maintain his freedom. He was eventually charged by Ecuadorian authorities with “alleged participation in the crime of assault on the integrity of computer systems and attempts to destabilize the country,” though the evidence to support the accusations is dubious at best.

Speaking with Truthdig Editor in Chief Robert Scheer, Danny O’Brien discusses why Bini’s case is so important to follow, despite a general lack of media interest in his arrest. O’Brien, director of strategy at the Electronic Frontier Foundation, went to Ecuador to visit Bini on behalf of the EFF in order to learn more about the case and advocate for the Swedish activist’s rights.

“Journalists, lawyers, human rights lawyers, human rights defenders, sort of viewed broadly, are often the canaries in the coal mines in authoritarian or veering-authoritarian regimes,” O’Brien tells Scheer in the latest installment of “Scheer Intelligence.” “I think many governments recognize that if you can either … silence, or just intimidate and chill, the key journalists or the prominent public defenders, then you have a huge sort of multiplier leverage effect on opposition groups, or groups fighting for justice in those countries.

“In the last few years,” O’Brien continues, “I think that governments around the world have recognized that technologists also fall into this category, or particular kinds of technologists.”

Scheer, whose most recent book “They Know Everything About You” is about mass data collection, highlights the threat activists like Bini pose to the powers that be at a time when big data translates to a mechanism for widespread control.

 » Lees verder

The Latest UN Horror Show: Christian Refugees Ignored

the-latest-un-horror-show:-christian-refugees-ignored

06-08-19 07:19:00,

Authored by Uzay Bulut via The Gatestone Institute,

  • Jordan is supposed to be their transit country; they are seeking resettlement to other countries via the Office of the United Nations High Commissioner for Refugees (UNHCR) and the Australian Special Humanitarian Program.

  • The registration with the UNHCR gives them the protective status of refugee as they await resettlement. Yet, the process of resettlement takes at minimum several months and sometimes even years due to the growing refugee backlog….. “The majority of those stuck in limbo have been waiting more than two years—some since the rise of ISIS in 2014,” according to the report.

  • “Since January, the process has become even slower and more difficult. The UNHCR has not even granted newcomers refugee status since. They just give them an appointment date, then they cancel the date and give them a new one. So we all keep waiting.” — Lorance Yousuf Kazqeea, a Christian originally from Baghdad, has been an asylum seeker in Jordan with his wife and two children since September 2017; to Gatestone Institute.

  • “You can contact the local UNHCR office in your country and demand answers – why Iraqi Christians have been waiting for resettlement for years and why the West continuously rejects them.” — Juliana Taimoorazy, founding president of the Iraqi Christian Relief Council, which has been active in Jordan since 2015; to Gatestone Institute.

Since the 2014 invasion and genocide by the Islamic State (ISIS) in Iraq, at least 16,000 Assyrian Christians from Iraq have become refugees in Jordan. Most are still suffering economically and psychologically there, under extremely difficult circumstances.

These Assyrian Christians are in Jordan on a temporary basis with plans to emigrate to a third country. However, as they have not been given official work permits by the Jordanian government, they largely rely on their savings, remittances sent by relatives abroad or aid from charity organizations and churches. Jordan is supposed to be their transit country; they are seeking resettlement in other countries via the Office of the United Nations High Commissioner for Refugees (UNHCR) and the Australian Special Humanitarian Program.

Pictured: The Za’atari refugee camp in Jordan.

 » Lees verder