Sunday, December 6, 2015

FEDERAL RESERVE SYSTEM [Fed] RICO LAW SUIT & "ITS'" OWNERS IT'S LONG PAST TIME ~ 11 Signs That An Imminent Stock Bear Market Apocalypse Has Become Even More Likely | China develops unique cooperation model with Africa | The IMF SDR Rights and the Global Currency Markets: Impacts of the Elevation of the Chinese Yuan (Renminbi)


A Double Dip By The ISM Manufacturing Index Into Contraction Territory Preceded The Previous Two Big Bear Markets For Stocks ~ And things will continue to unravel as we move into 2016 and beyond ...  A key gauge of manufacturing activity has double-dipped into recession territory, but stock market investors don’t seem to care. History suggests, however, that maybe they should.  The Institute of  Supply Management’s manufacturing index for November surprisingly fell to the lowest level since June 2009, the last month the U.S. economy was in recession. More importantly, the ISM index fell below the 50% level, to signal contraction, for the first time since it dipped below that level for one month in November 2012.  Meanwhile, the S&P 500 Index SPX, +1.07% climbed 1.1%, with more than 80% of the components gaining ground.  The following chart shows the last two big bear markets, were foreshadowed by a return of the ISM index into contraction territory, in August 2000 and December 2007.

   Illustration: Peter C. Espina/GT
By Song Guoyou Source:Global Times

Investment by Chinese firms supported by domestic finance sector

 As more and more Chinese enterprises expand into Africa, there has been increasing interest in China's economic activities in the continent. As well as positive feedback, there have also been some negative comments, with China having been accused of neo-colonialism, of grabbing resources and dumping low-quality products.   Such criticism is the opposite of how most African people see it. Massive investment in Africa has not only led to economic benefits for Chinese enterprises; it has also provided growth momentum for African countries. It is a win-win situation for the development of China and Africa, and for the Sino-African relationship.

By Nick Beams  ~ Global Research, December 06, 2015,
World Socialist Web Site 5 December 2015

The elevation the Chinese renminbi (also known as the yuan) to the basket of global currencies making up the International Monetary Fund’s special drawing rights (SDRs), in effect making it an international reserve currency, is unlikely to have any major immediate effects. But it does underscore the vast transformation in the foundations of the world economy over the past three decades resulting from the long-term economic decline of the US.  As the Stratfor web site noted in its comment on the decision, it is the first time that the basket of reserve currencies, which had previously comprised the dollar, the British pound, the Japanese yen and the euro, will include the currency of a country not allied with the US.  The post-World War II monetary order, of which the IMF was a part, was grounded on the overwhelming economic dominance of the US. In 1945, Stratfor pointed out, US gross domestic product was estimated to be as high at 50 percent of the world total. This year it will be 22 percent.  While it supported the decision to include the renminbi in the SDR basket, the US did so very much with gritted teeth. The principal reason for its acquiescence was fear that its continued resistance—it played the leading role in having China’s 2010 push to be included in the SDR basket turned down—would provoke opposition from other powers. There is already criticism of the US from within the IMF because Congress has refused to ratify a 2010 decision to give China increased voting rights. At present, it has the same vote within the organisation’s bodies as Belgium.

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