Goldilocks’ Comments and Global Economic News for July 29, 2023
RJ: Good evening Dinar Recaps,
Goldilocks posted comments and links on the global financial system:
Heartland Tri-State Bank of Elkhart, Kansas, failed on July 27, with the Federal Deposit Insurance Corporation taking control. New York (CNN) — Heartland Tri-State Bank of Elkhart, Kansas, failed on Friday, with the Federal Deposit Insurance Corporation taking control.
On September 30th, the Office of the United States Trade Representative (USTR) will review Section 301Tariff Exclusions with China.
These Exclusions are set to expire at that time. It will leave open an opportunity for new trade agreements with China. For now, many companies are uncertain about future import costs with China.
The shipping industry has come a long way in digitizing their production business. It would be a great time to begin new digital-asset based trading protocols.
Section 301 Tariff Exclusions Will Expire Soon, Unless Extended | White & Case LLP
“Regulators issue guidance on Fed discount window, emergency borrowing”
It looks like we are on alert at this point. Banks are being given a contingency plan with the Fed “Discount Window Opportunity” being presented to them.
Contingent liquidity is the holding of high quality liquid assets (gold) to meet sudden or unexpected funding obligations. This includes the absorption of potential losses.
This is why the Basel 3 proposal plan had to be in place yesterday. Banks are aware we are rapidly approaching a period of time for market transitions to occur. Some companies will rise and others will fall during this period of transition.
Basel 3 and the FEDS guidance on a contingency plan tells us our economy is about to go into real values across every sector of the market.
Currency reforms around the world are beginning to take center stage.
There is no doubt that India will be on the cutting edge of growth potential going forward.
Their Unified Payments Interface is putting them on the map for currency transactions around the world.
As our Global Markets reset to real values, look for more bilateral trade agreements between India and other countries to pick up the pace.
China State Banks have recently been selling the dollar to prop up the Yuan.
“This means that smoothing yuan depreciation pressure may become more of a policy priority from now on. This is in line with the People’s Bank of China’s (PBOC) further tightening of FX policy recently.”
This is a form of currency intervention whereby the stabilization of a country’s currency is the priority.
Most often than not, these protocols are steps that are taken just before you see a currency exchange rate change.
In the East, we are witnessing many countries switch from the dollar to the Yuan in exchange rate settlements. As countries peg their National currencies to the Yuan in settlements regarding their trade transactions together, this creates a trust line between the two countries that builds demand and value for each other’s currencies.
Through money velocity, the demand for each other’s currencies will build value in trades over the course of time.
It is important to note that the Chinese Yuan is backed by gold. This is an interesting scenario indeed as it has the potential to level the playing field in trades in our Eastern half of the world especially when Basel 3 is activated around the world.
Banks’ restatements of uninsured deposits jump fourfold | Banking Dive
The US ambassador in Baghdad announces the success of her mediation between the Iraqi Central Bank and the US Treasury
Economist Abdul Rahman Al-Mashhadani confirmed that the recent government measures in addition to the measures of the Central Bank will contribute to raising the value of the Iraqi dinar against the dollar.
Al-Mashhadani, in a statement to the Tigris, pointed out that “the US Treasury sanctions on the 14 banks, were taken by the government to direct Prime Minister Mohammed Shia Al-Sudani to build the conversion of 116 exchange companies that were receiving their weekly shares of the dollar from the penal banks to other banks that will necessarily raise the value of the Iraqi dinar.”
Al-Mashhadani added that “these measures, if actually applied and continued, will pay for a depreciation of the dollar more against the Iraqi dinar and the actual value may reach 140 thousand dinars.”