USTBill Rejection at Ports in Progress
👁👁
By: Jim Willie CB,, GoldenJackass.com
23 80 8 Google +4 2
-- Published: Friday, 14 October 2016 | Print | 15 Comments
World
trade has fallen for the second quarter in a row. The decade of
stagnation of industrial production in the United States, Japan, and
European Union can be blamed on financial engineering, housing bubbles,
war, and recently on destructive monetary policy in QE bond purchase
program. It is not stimulus, but rather a destroyer of capital. The West
contains several nations with heavy industrial emphasis, hardly
advanced economies anymore. They risk a fall into the Third World from a
generation of outsourcing, asset bubbles, and financial fraud, as soon
as the new currency regime is installed as part of the financial RESET.
The
CPB Netherlands Bureau for Economic Policy Analysis, a division of the
Ministry of Economic Affairs, just released its preliminary data of its
Merchandise World Trade Monitor. Trade volumes rose 0.7% in June
sequentially, after falling 0.5% in May. Trade was flat year-over-year,
but below the volumes of December 2014. On a quarterly basis, world
trade fell 0.8%, contracting for the second quarter in a row. Without a
doubt the global economy is stuck in a powerful recession. No positive
constructive remedies or proper reform policy have been put in place
since the Lehman failure. Exactly none. To be sure, none have even been
attempted.
Worse,
the CPB recently adjusted its world trade data downward, going back
several years. The newly updated data depicts a post-Financial Crisis
recovery of global trade which is considerably weaker than their
original data had indicated. These downward adjustments of 2% to 3% came
in a climate of stalled economic growth, according to the IMF. Much of
the Western national data is rubbish, forced positive by the common
NeoCon fascist dictum. The chart of the CPB’s World Trade Monitor index
shows the old data released as of July 2015 (blue line) and the newly
adjusted data released (red line). Observe the horrendous 4.4%
downard adjustment from the peak in global trade volumes in the original
data for December 2014 and in the current data for June 2016. They
confirm a broadbased global recession of about 1.0%, in full
contradiction of the nonsensical constant Orwellian propaganda of
sluggish recovery, spouted routinely in the drumbeat of mainstream news.
World
trade is a direct reflection of only the goods producing economy.
Services are not shipped around the world. An airline flight of a group
of consultants is not considered world trade, any more than tourism.
Finished products, raw materials, and intermediate goods (like car parts
for assembly) are shipped regularly. So industrial production,
excluding construction, is key. The trend is terrible for advanced
economies. Global industrial production, excluding construction, rose
0.6% in June, after a 0.3% decline in May. The index for industrial
production in advanced economies rose to 102.5, below where it had been
in January at 103.4, a level reached after the Financial Crisis in
December 2012. The industrial output remains below from the glory days
before the Financial Crisis when the index peaked at 107.8 in February
2008. The global economic recession is as painfully evident as it is denied.
The
current level for the index has returned almost exactly to where it was
in April 2006, right before the Lehman failure and ensuing crisis. The
world has endured a full decade of stagnation, without any remote
attempt at remedy or reform, while the bank syndicate remains in power.
Remove rose colored glasses. Combine the abandoned austerity budget
initiative for the USGovt with the ongoing big bank welfare (known as
QE), the preserved insolvent big banks (in dire need of liquidation),
the expanding welfare state, then sprinkle on Arab human garbage, and
stir with the maintained constant war. Thus no economic recovery, just
talk of such.
To
varying degrees, the gripping recession has occurred in the United
States, Japan, and the EuroZone. A few other so-called industrialized
(advanced) economies have exceeded their pre-Financial Crisis levels. Industrial production has shifted to emerging economies, capitalizing on their cheap labor for many years, such as China.
Decades ago the vast array of companies in the US, and eventually in
Europe and Japan, began outsourcing production to emerging economies in
foreign lands. Hence, industrial production in emerging economies has
surged over this period. This was particularly the case after the
Financial Crisis when companies in the US, Europe, and Japan redoubled
their efforts to get production relocated offshore, using easy money
from the USFed which moved the cost of money to near 0%, where it has
remained for seven years. However, an extreme point of caution. The
Emerging Market USD-based debt stands at over $5 to $9 trillion,
depending on the definition of such nations. Some estimates are higher.
The debt is on the verge of default, due to their currency declines and
reduced commodity income, including from crude oil. Thanks to Wolf Street for the contribution.
HANJIN SHIPPING CRISIS
The
Hanjin crisis brings new headache to US-based importers. Trailers stack
up, adding to client costs while trailer shortage looms. The idle
containers are clogging the entire system. Confusion abounds, as
emergency measures are being sought. A drop-off point system for the
empties is being considered. Soon the used containers will become a
newly created market for cargo owners. The bankruptcy of South Korea's
Hanjin Shipping Co Ltd is causing ripple effects for importers bringing
goods from Asian factories to the US marketplace. Port facilities are
being jammed, while a shortage of trailers is created to move ocean
shipping containers on US roads and railways. The world's seventh
largest container carrier owns and transports more than half a million
containers. They are in many cases clogging up ports and truck yards,
tying up trailers that cannot be used to handle other cargo. The growing
chaos is beginning to worry freight handlers at US ports on the West
Coast. Witness the first sign of follow-on effects from the failure of
Hanjin. The problem stems from Hanjin's shortage of cash, which has
stranded $14 billion of cargo owned by companies such as HP Inc, Home
Shopping Network, and Samsung Electronics. Much of the cargo have been
stuck on over 100 ships at sea because cargo handlers, tug operators,
and ports are refusing to work with Hanjin unless they are paid upfront.
They all are aware of the risk of not receiving payment.
In
recent weeks, terminal operators in the California ports of Long Beach
and Oakland are not taking back empty containers. Many in the industry
doubt Hanjin will pay storage costs, which has led to a growing backlog
of empty containers and the trailers they sit on. The containers are
stranded. Thousands of Hanjin containers are on trailers kept out of
circulation. The uncertainty surrounding Hanjin appears to be pushing
truckers to lock in trailers from the local organization pool. Maybe the
vast pile-up of containers can be fashioned into sleek condominiums
like in Detorit, like lego communities.
Simply stated, if a container reads the Hanjin label, there is no place for it to go. One
intermediate solution put forth is the creation of a Drop-Off Point for
containers after their cargo is discharged. In Southern California,
shipping industry executives are discussing a staging area where
truckers could drop off empty containers to free up trailers.
Another mid-term solution has been proposed. The cargo owners could
resort to buying the containers they hold, which would clear up any
legal uncertainty around them, thereby enabling the return of chassis. A
new niche market is emerging.
Global
supply chains are paralyzed after world's seventh largest container
shipper filed for bankruptcy, with its assets frozen within the system.
Eastern (Asian) mega-corporations are not too big to fail, not coddled
and bailed out (like in the West). Hyundai Merchant Marine might
purchase some of Hanjin's diverse assets. Shipping rates have been
reduced amidst the glut, as the global economy is due for a large slam.
August
31st will be marked on the calendars. On that day, the largest casualty
finally slammed global trade ports when South Korea's Hanjin Shipping
filed for court receivership after losing its bank support (credit
lines), which left its assets frozen. Ports from China to Spain denied
access to its vessels. Hanjin
Shipping is SKorea's largest shipping firm and the world's seventh
biggest container carrier. It is a truly huge player. It operates some
70 liner and tramper services around the globe, transporting over 100
million tons of cargo annually. Its fleet consists of some 150
containerships and bulk carriers. It commands four regional headquarters
in the US, Europe, Asia, and South East & West Asia, with nearly
5000 people on global staffs. They run numerous major ports for their
world class logistics network. Other shipping firms will go bust soon.
Even leader Moller-Maersk is in deep trouble, now considering a
restructure.
HIDDEN PROBLEM IN USDOLLAR AS PAYMENT
The
shipping stalemate from Hanjin has suspicious elements and overtones.
Perhaps the Asians generally are conspiring to throw a wrench into the
Western Economy. The strong hint of a USDollar rejection at the ports is
a major component in the financial angle, possibly the initial salvo in
the global financial RESET. Dire challenges exist to shipping with
respect to finance, threatening the Global Economy.
Be sure to know that what follows is speculation, but informed and backed by the last few years of events. The
stage is set, during a trade war and a global visceral response to the
QE monetary hyper inflation that undermines the USDollar. The East led
by China want the RESET to be done, but the West delays interminably.
The Western bankers and their controlled governments are printing money
to cover their failed bonds and to finance their huge debt. THIS CANNOT
STAND. Global finance has been turned on its ear. Numerous national
banking systems are insolvent. The expected pull of the plug has been
looming for many months. Consider some thoughts by EuroRaj, a brilliant
analyst on the Jackass team. He wonders if the Asian producers have
finally found a lever to pull with shipping and its related payments, to
interrupt global trade with the West. It has been not only lopsided,
but the payments have been in low quality printed paper and impaired
debt. Refer to USTreasury Bills, which seem to be a problem, perhaps
being rejected at ports as payment. Consider the theory by my
brilliant colleague with 20 years of bank analyst experience, a savvy
fellow who has contributed much to the Hat Trick Letter since 2013.
The Hanjin story sounds very shady for a number of reasons. The
total debt involved is only at $5.6 billion. Nobody stops operations in
a bankruptcy, since the situation worsens quickly and the creditor
damage grows deeper. The banks or specialist funding companies step in quickly with an urgently needed service, to provide debtor in possession financing (DIP)
funding. Imagine some potential motives at work here. First, perhaps
Team Asia wishes to throw a monkey wrench for trade between China and
Europe. Note how China and Spain are mentioned in the articles
concerning the Hanjin debacle. Second, perhaps a plan is afoot to bring
global trade and manufacturing to a halt, so that USFed can justify QE
to Infinity in full bloom soon while the Western Economies are severely
distracted.
The
question has come to center stage. As a result of the bankruptcy
process, the global supply chain stands at risk to endure an unexpected
failure. The South Korean oceans ministry had been in negotiations for
Hyundai Merchant Marine to take over some routes. The global
implications from the bankruptcy are unknown, since without precedent
due to enormous scale. The potential impact on global supply chains
remains devastating, with a cascading waterfall effect, whose impact on
global economies could be severe as a result of the worldwide logistics
chaos. Both economists and corporations around the globe, the affected
firms suffering deep impacted and others, will have yet another excuse
on which to blame the radical slowdown in profits and economic growth in
the third quarter. An official admission of a global recession, along
with numerous individual national recessions, might come. Do not expect
the USFed to hike interest rates with the shipping disaster in the
background. They are all talk!
PRETEXT FOR USTBILL REJECTION
Here
is the central point, perhaps a seminal event in progress with respect
to the Global Financial RESET, an action done by angry Asian producers.
We might be witnessing a pretext in action, to cover for the rejection
of the USDollar, the refusal to accept USTreasury Bills at ports in
return for cargo delivery. At risk is the stoppage of all goods
shipped from Asia to the United States. The stakes have risen. The
Asians are out of patience. The damage multiplies each month. They might
be fed up with toilet paper spewn by the USGovt and USFed, a money
laundering duo. We might be seeing a trade war salvo of high order,
this round led by Asia, directed at the USEconomy, forcing the RESET
that Washington and Wall Street refuse to permit, refuse to initiate.
The American retailers and other clients who order the Asian ships
loaded with cargo typically pay with USTreasury Bills. The Asians might
be finally calling an end to payment in USD terms, rendered African
toilet paper by QE and the massive hemorrhage of $1 trillion USGovt
debt. Hyper monetary inflation has stern nasty consequences. The US
trade deficit is a whopping $500 billion per year, which is financed by
debt during a time of suspected debt default and full debt monetization.
The
red flag could be telling us to that RESET is here. The urgent call
would be to stock up on essential supplies and to buy physical gold
& silver (then to hold it). Without any hesitation or
equivocation, the hangup at ports implies something particularly
foreboding about the state of global finance. The DIP Financing step
has been short-circuited. It smells like a coordinated operation is
being carried out by Team Asia, with Hanjin a sacrificial lamb, albeit a
very big lamb.
Futhermore,
more stench with signals. The goods carried as cargo have nothing to do
with the troubles of the transportation company. They are separate. The
suspicion is that the producers who load the ships with cargo from
actual work are interested in higher quality payments, no longer finding
the USTBill acceptable as payment. The USGovt officials would put a
news blackout on the USD rejection. The real physical goods are there.
Look beyond the stated news. It is the payment in USD terms which is the problem. The DIP Financing should be an easy issue to overcome.
Such financing is standard operating system, and has been for 50 years.
With each passing month that QE wrecks the financial platforms and
undermines capital structures, the payment in USD terms is more
assuredly to be refused. We might soon hear about payment in kind for
the cargo, as in the form of any commodity or finished good being
requested. Perhaps demands for barter on hard assets such as
commodity swaps will be part of trade payments, a concept cited by The
Voice on countless occasions in the last year or two. This could be
accomplished with copper plates, iron ore, cement, oil & gas, even
credits toward commercial building purchase, port facility purchase,
bridge and toll road purchase, even more.
GOLD TRADE NOTE INTRODUCTION
The
Gold Trade Notes for trade payment might be coming into view, initially
with commodity transfers, later swap contracts, and finally gold-backed
short-term notes which supplant the USTBill. One might think of
used newspapers on the floor, or of the dodo bird. The trade might be
made in exchange for either goods delivered or USTBills held. Detect a
growing connection to finished goods being withheld from delivery. This
is probably another sign of refusal of USTBills as payment. As footnote,
be sure to know that the
preliminary steps to the Global Currency RESET will not be laid out in
full disclosure for public benefit. It represents a tremendous
investment opportunity for the elite, which they never tend to share.
In fact, the RESET might be well along before it is even recognized.
End to EuroRaj main thoughts and open analysis, for which much gratitude
is given. The Jackass believes a few critical elements to the RESET are
in place. More details on DIP Financing feature is included in the
September Hat Trick Letter report.
***A
major hitch obstacle can be inferred. Payment in USD terms might be the
clot in the artery. Demands might be for hard asset swaps, and the
contract security from large scale commitment of commodities,
facilities, and property. The swap trade is coming into view, a presage
of the Gold Trade Note.***
The
Jackass concludes the USD rejection could be lifting its head within a
gathering storm, without clear identification. It is indeed difficult to
identify all the elements when hidden deals at the highest level are
underway, and friction is omnipresent. The Bobcat Corp rejection of
USTBills at Pacific ports is a clear story. For every one story
recounted, there are 10 to 20 not yet heard. My firm belief is that in
Asian banking systems, they do not want the USTBills anymore. The banks
in Asia are trying to dump them in heavy volume, not accumulate more
worthless toilet paper. Finally the sharp blowback from printing QE
money has hit. The USFed monetary policy saves the big insolvent banks,
but kills capital. The result has finally seen manifested in USD global
rejection, or at least hints toward the same. Asian banks still hold
vast sums of USTBonds. They are not going to announce the rejection, but
instead fight behind the walls for better terms of payment, even as
they pursue the Gold Trade Note for payment at ports. It is coming, like
daybreak follows the long night.
NEW SCHEISS DOLLAR & GOLD TRADE STANDARD
In
time, expect an eventual refusal by Eastern producing nations to accept
USTreasury Bills in payment for trade. The IMF reversal decision
assures this USTBill blockade in time, and might accelerate the
timetable. The United States Govt cannot continue on five glaring fronts
of gross negligence and major violations. These violations have
prompted the BRICS & Alliance nations to hasten their development of
diverse non-USD platforms toward the goal of displacing the USDollar
while at the same time take steps toward the return of the Gold
Standard.
The
New Scheiss Dollar will arrive in order to assure continued import
supply to the USEconomy. It will be given a 30% devaluation out of the
gate, then many more devaluations of similar variety. The New Dollar
will fail all foreign and Eastern scrutiny. The USGovt will be forced to
react to USTBill rejection at the ports. The US must accommodate
with the New Scheiss Dollar in order to assure import supply, and to
alleviate the many stalemates to come. The United States finds itself on
the slippery slope that leads to the Third World, a Jackass forecast
that has been presented since Lehman fell (better described as killed by
JPM and GSax). The only apparent alternative is for the United States
Govt to lease a large amount of gold bullion (like 10,000 tons) from
China in order to properly launch a gold-backed currency. Doing so would
open the gates for a generation of commercial colonization, but actual
progress in returning capitalism to the United States. The cost would be
supply shortages to the USEconomy, a result of enormous export
increases to China.
The
colonization has already begun, with secret deals galore. It is very
unclear what deals are being struck in order to arrange for the USGovt
to have a proper gold reserve hoard, for backing a new legitimate
USDollar. Meetings at very high level are in progress, with little if
any popular representation, only elite members present. Failure to
produce a legitimate bonafide gold-backed currency would mean the United
States must proceed with the New Scheiss Dollar, an illegitimate fake
phony farce of a currency. It would be subjected to a series of
devaluations. The result would be heavy powerful painful price inflation
from the import front. The effect would be to reverse a generation of
exported inflation by the United States. The entire USEconomy would go
into a downward spiral with higher prices, supply shortages, and social
disorder. However, the rising prices would come from the currency
crisis, and not so much from the hyper monetary inflation. That flood of
$trillions has been effectively firewalled off.
HAT TRICK LETTER PROFITS IN THE CURRENT CRISIS.
home: Golden Jackass website
subscribe: Hat Trick Letter
Jim Willie CB, editor of the “HAT TRICK LETTER”
Use
the above link to subscribe to the paid research reports, which include
coverage of critically important factors at work during the ongoing
panicky attempt to sustain an unsustainable system burdened by numerous
imbalances aggravated by global village forces. The historically
unprecedented ongoing collapse has been created by compromised central
bankers and inept economic advisors, whose interference has irreversibly
altered and damaged the world financial system, urgently pushed after
the removed anchor of money to gold. Analysis features Gold, Crude Oil,
USDollar, Treasury bonds, and inter-market dynamics with the US Economy
and US Federal Reserve monetary policy.
No comments:
Post a Comment