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Old 03-20-2020, 10:12 AM   #561
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There are a lot of things in motion these days with Covid19 response efforts wreaking havoc on national economies across the globe. Many issues have been covered/discussed in separate "reality check" threads for individual nations, but it was inevitable that at some point, we'd need to take a step back and look at the big picture...

Quote :
LONDON (Reuters) - From Brazil to Norway, policymakers are leaping to defend currencies against the onslaught of the dollar which scaled three-year peaks on Thursday, raising speculation that a joint move by the world’s biggest central banks may be in the offing.

A global stampede for dollar funding drove currencies across the world to multi-year or record lows against the greenback. Some relief came after the U.S. Federal Reserve opened $450 billion in swap lines to several central banks but the pressure broadly remains.

Coordinated central bank action remains unlikely for now, market watchers said. But these are unusual times, and Norway’s central bank on Thursday threatened to intervene to lift the crown, a step it has not taken in more than 20 years.
...
More: https://www.reuters.com/article/us-h...-idUSKBN2163UT

tl;dr - Currency wars may start heating up if the dollar keeps rising.
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Old 03-24-2020, 10:24 AM   #562
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Shit is getting real...

Quote :
As the markets continue to drop and the U.S. looks to Congress for agreement on a massive stimulus package to save the economy from impacts of the coronavirus pandemic, the newest offer by House Democrats includes a very forward-looking kind of stimulus: the creation of a ‘digital dollar’ and the establishment of ‘digital dollar wallets.’ In what will send shock waves through the cryptocurrency and blockchain industry, particularly for those following central bank digital currencies around the world, this signals the U.S. is serious in establishing infrastructure for a central bank digital currency.

Both Speaker Pelosi’s ‘Take Responsibility for Workers and Families Act’ and the ‘Financial Protections and Assistance for America’s Consumers, States, Businesses, and Vulnerable Populations Act (H.R. 6321),’ introduced by Chairwoman Maxine Waters of Financial Services Committee, introduced these concepts today as a way of delivering the economic stimulus payments to U.S. citizens.

The bill establishes a digital dollar, which it defines as ‘a balance expressed as a dollar value consisting of digital ledger entries that are recorded as liabilities in the accounts of any Federal Reserve Bank or ... an electronic unit of value, redeemable by an eligible financial institution (as determined by the Board of Governors of the Federal Reserve System).’ Additionally, a digital dollar wallet is identified as ‘a digital wallet or account, maintained by a Federal reserve bank on behalf of any person, that represents holdings in an electronic device or service that is used to store digital dollars that may be tied to a digital or physical identity.’

A mandate also requires all ‘member banks’ establish a ‘pass-through digital dollar wallet’ to all customers eligible for the stimulus. Member banks include those banks that are ‘members’ of the Federal Reserve and regulated by the Fed. Additionally, ‘Non-Member’ state banks - those that not members of the Federal Reserve and regulated by the FDIC - could opt-in to offer pass-through digital dollar wallets as well.

The Federal Reserve banks themselves would also make available a digital dollar wallet to any U.S. person eligible for the payments as well. Additionally, the U.S. Postal Service would aim to help unbanked individuals and/or those without proper ID to establish their identity be provided a digital dollar account, and would set up ATMs for customers to access their funds.
...
https://www.forbes.com/sites/jasonbr...c#37f7969c4bea
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Old 03-24-2020, 10:52 AM   #563
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why would they need access to an ATM ?
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Old 03-24-2020, 11:08 AM   #564
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Purportedly, it's a measure to help the poor who don't have bank accounts. It looks like this initial measure isn't designed to be a full fledged currency with payment system integrations at stores. It is likely going to allow an exchange rate between digital dollars and "normal" dollars though. "Unemcumbered interest rate policy on the zero bound" on the horizon?
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Old 03-26-2020, 09:32 AM   #565
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Rickards still thinks SDRs will be TPTB's solution:

https://dailyreckoning.com/get-ready-for-world-money/

I wonder if he's even been paying attention to the CBDC stories that are happening.
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Old 03-30-2020, 11:31 AM   #566
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Quote :
China's central bank is one step closer to issuing its official digital currency. It seems the People's Bank of China (PBC), in collaboration with private companies, has completed development of the sovereign digital currency's basic functions and is now drafting relevant laws to pave the way for its circulation, industry insiders said.
...
https://www.globaltimes.cn/content/1183632.shtml

IMF recently posted transcript of an address given on 2/28/20:
Quote :
Deputy Managing Director Tao Zhang’s Keynote Address on Central Bank Digital Currency

March 19, 2020

London School of Economics
February 28, 2020



It’s a real pleasure for me to be here for this conference on China’s Trade and Financial Globalization. I want to thank the Institute of Global Affairs of the London School of Economics for the invitation.

This afternoon, we’re going to take up a topic that everybody seems to be talking about these days – namely, central bank digital currency (or “CBDC” for short). This is a “widely accessible, digital form of fiat money that can be legal tender,” and a recent BIS survey of central banks shows that 80 percent were exploring CBDC.

I’ll start by laying out what I see as some of the main pros and cons of CBDC, as well as their international implications. I’ll say a few words about a few recent pilot experiences with these currencies, and also about some variants and alternatives to CBDCs. Finally, I will close by sharing what the IMF is doing in this area.
...
At the IMF, we have been ramping up our research, analysis, and overall thinking on CBDCs, and indeed, on Fintech in general. Together with the World Bank, the IMF produced the Bali Fintech Agenda, which offers a framework to guide policymakers in thinking about how to regulate Fintech in their jurisdictions. We also routinely publish Fintech Notes, Staff Discussion Notes and Working papers on issues related to Fintech and CBDC, specifically. In January, for instance, we came out with a note on “Institutional Arrangements for Fintech Regulation and Supervision” and another on the “Regulation of Crypto-Assets.” And we also collaborate with other international organizations and standard setters, such as the Financial Stability Board (FSB) and Committee on Payments and Market Infrastructure (CPMI). The Fund is also a member of the G7 Working Group on Digital Payments.
...
https://www.imf.org/en/News/Articles...gital-currency

It certainly looks like the ball is already rolling downhill.
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Old 03-31-2020, 10:49 AM   #567
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The Fed has announced a lot of programs within the last couple of weeks to stabilize credit markets and bank liquidity. Now they announced one for foreign banks (unspecified, but likely European I'd imagine).
Quote :
The Federal Reserve on Tuesday announced the establishment of a temporary repurchase agreement facility for foreign and international monetary authorities (FIMA Repo Facility) to help support the smooth functioning of financial markets, including the U.S. Treasury market, and thus maintain the supply of credit to U.S. households and businesses. The FIMA Repo Facility will allow FIMA account holders, which consist of central banks and other international monetary authorities with accounts at the Federal Reserve Bank of New York, to enter into repurchase agreements with the Federal Reserve. In these transactions, FIMA account holders temporarily exchange their U.S. Treasury securities held with the Federal Reserve for U.S. dollars, which can then be made available to institutions in their jurisdictions. This facility should help support the smooth functioning of the U.S. Treasury market by providing an alternative temporary source of U.S. dollars other than sales of securities in the open market. It should also serve, along with the U.S. dollar liquidity swap lines the Federal Reserve has established with other central banks, to help ease strains in global U.S. dollar funding markets.

The Federal Reserve provides U.S. dollar-denominated banking services to FIMA account holders in support of Federal Reserve objectives and in recognition of the U.S. dollar's predominant role as an international currency. The FIMA Repo Facility, which adds to the range of services the Federal Reserve provides, will be available beginning April 6 and will continue for at least 6 months.
https://www.federalreserve.gov/newse...y20200331a.htm
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Old 04-01-2020, 10:04 AM   #568
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Originally Posted by German Foreign Office :
France, Germany and the United Kingdom confirm that INSTEX has successfully concluded its first transaction, facilitating the export of medical goods from Europe to Iran. INSTEX and its Iranian counterpart STFI will work on more transactions and enhancing the mechanism.
https://twitter.com/GermanyDiplo/sta...02540812189697
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Old 04-16-2020, 08:44 AM   #569
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Quote :
The United States opposes creation of liquidity through issuance of the International Monetary Fund’s Special Drawing Rights (SDRs) as part of the response to the coronavirus pandemic, U.S. Treasury Secretary Steven Mnuchin said on Thursday.

In a statement to the IMF’s steering committee, Mnuchin said 70% of the funds created through an SDR allocation, something akin to a central bank “printing” new money, would go to G20 countries that did not need it, while only 3% would go to low-income countries.

Instead, he said, members should contribute to two IMF facilities that provide funds to the poorest countries, and the U.S. government was exploring such a contribution itself.
https://www.reuters.com/article/us-i...-idUSKCN21Y1QU

Looks like USA isn't on board with the NWO plan for SDRs as professed by Rickards. I guess Mnuchin, Powell, et. al. think the Fed can swallow the bomb and absorb the impact intact.

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Old 04-22-2020, 10:13 AM   #570
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Rickards addressed the IMF/SDR issue two days ago:

Quote :
...
A normal SDR printing exercise requires that the total SDRs be issued to all IMF members in proportion to their voting rights in the IMF. This means that U.S. adversaries such as Iran and China would get part of the bailout money along with more needy countries in Africa and Latin America.

The U.S. is now holding up the new issuance of new SDRs for exactly this reason.

We’ll see how this impasse gets resolved. Perhaps new SDRs will be issued right away. But as the depression lingers and the Fed’s impotence is exposed, the issue of printing a trillion SDRs will be back on the table.

China may have their own conditions such as a diminution in the role of the dollar as a global reserve currency. The U.S. may be more desperate when the time comes. Either way, this issue will not go away.
...
https://dailyreckoning.com/trump-say...o-world-money/
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Old 05-18-2020, 06:11 AM   #571
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Crypto wars still playing out...

https://www.forbes.com/sites/billyba.../#34a79ec878b5
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Old 05-26-2020, 06:43 AM   #572
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Quote :
... the clearest signal of provocative and ambitious Chinese intent. That came from the People’s Bank of China’s fix for the Chinese currency to start the week. This is the level the central bank sets as a guide for the market, and the exchange rate can vary from it by no more than 2% in either direction — it effectively tells the world how far China is prepared to allow its currency to move. And Monday’s fix against the dollar was the weakest since 2008.

China left its currency fixed at an unrealistically weak level for several years after it acceded to the World Trade Organization in 2001. After 2005, it agreed on a swift appreciation, which halted in the spring of 2008 as the credit crisis took hold. In 2010 it was allowed to resume a steady climb. Since its shock devaluation in 2015, which caused a minor global crisis, the trend has been toward letting the currency weaken, particularly when China might want to send a message — as it did when the fix reached its previous post-2008 low in the days after the U.S. announced new tariffs on China in August last year. A weaker currency tends to make China more competitive, and makes life harder for U.S. exporters. So this can be seen as a very provocative gesture. Could China conceivably be prepared to let the yuan move all the way back to 8.0 per dollar?
...
https://www.bloomberg.com/opinion/ar...cold-war-salvo
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