Home > Sept 2017 > September 20, 2017 Please FOMC finally pop this bubble..Copper sitting in Storage at 2004 levels

September 20, 2017 Please FOMC finally pop this bubble..Copper sitting in Storage at 2004 levels

September 20th, 2017

Today we get the Fed Meeting. At this point with stock markets at all time highs and many of the board reading about Retirement Ideas, this might be the moment us Bears have been dreaming about? Yellen 71, term ends in February of course, Fischer retires next month and there are already three vacancies on the Fed’s seven-member board of governors. There is no Inflation, even though the Fed has been arguing that high employment translates to higher wages…that model is broken. Will the Central Bank finally admit that this “historical QE Experiment” didn’t result in what they planned and start to walk away from it. Doubt it. But, maybe with the end of QE finally being addressed the Bulls will start to take chips off the table? I will have to sit and wait for that. Tonight, Futures are flat and a eerie quiet is around. Shanghai and Beijing ordered all Cyptocurrency houses to shut down today. Shanghai Futures were mixed. For my Copper Bubble, ShFE and COMEX have stock levels not seen since 2004…oh and South Korea is having problems getting loans on copper because of the North Korea tensions. Bankers are getting nervous.

Sept 2017

  • Trading_Nymph

    From Shanghai Daily…Regulators’ blow to virtual currency
    Source: Agencies | 00:01 UTC+8 September 20, 2017 | PRINT EDITION
    BANKING regulators in Beijing and Shanghai have ordered local crypto-currency exchanges to shut down, in the latest blow to the once flourishing Chinese market for virtual money.

    A Beijing-based regulator required all exchanges in the city to submit a plan by 6pm today for winding down their operations.

    Shanghai’s exchanges were ordered closed last week.

    The international value of Bitcoin has plunged in recent days amid speculation that Chinese authorities would shut down the trading platforms following a ban on initial coin offerings (ICOs) earlier in the month.

    It was trading at US$3,969 yesterday, down from highs around US$4,359 a week ago.

    China’s two largest Bitcoin platforms — BTCC and OKCoin — announced last week that they would stop all trading following the Chinese government’s new regulations which were aimed at clamping down on crypto-currencies.

    The Chinese central bank’s announcement on September 4 meant that firms would no longer be able to issue electronic currency units to raise funds.

    Following the decision, the National Internet Finance Association of China said last week that there was “no legal basis for platforms which engage in the trading of various forms of ‘virtual currencies.’”

    The association, which was created by the central bank, warned on its website that such currencies are “increasingly used as a tool in criminal activities such as money laundering, drug trafficking, smuggling and illegal fundraising.”

    In an attempt to halt capital flight overseas and clean up its financial system, China began early this year to tighten controls on Bitcoin trading platforms by restricting, in particular, transactions considered excessively speculative.

    The BTCC and Okcoin platforms, which operate in yuan, accounted for 22 percent of the world trade in Bitcoins in early September, according to reference website bitcoinity.org.

    So far this year, 65 ICOs in China raised 2.62 billion yuan (US$398 million) from 105,000 investors, according to a report by the National Committee of Experts on the Internet Financial Security Technology.

    “Crypto-currency exchanges also provide channels for money laundering, criminal financing and dodging foreign exchange control with no effective supervision,” said Xue Hongyan of the Suning Financial Research Institute.

    China’s bans on ICOs and crypto-currency exchanges are part of a broader campaign to curb the country’s financial risks as the country faces a build-up of debt, and booming new financial products challenge regulations.

    From the end of last year, China launched a regulatory windstorm with major financial regulatory bodies, rolling out policies to identify and punish many types of illegal activity.

    In April, amid complaints about reckless speculation on financial markets, the China Banking Regulatory Commission outlined 10 detailed fields for strengthened risk control, including traditional sectors such as credit, liquidity, real estate and local government debt, as well as non-traditional areas such as Internet finance.

    The China Insurance Regulatory Commission recently asked insurance firms to report typical cases and data on new types of fraud.

    Other regulatory upgrades included the introduction of a new committee on financial stability and development, announced during a two-day National Financial Work Conference in July.

    “Chinese regulators’ ban on crypto-currency exchanges is a timely manner to address risks arising from technology-based finance, but it is not a denial of innovative technology such as blockchain,” said Sun Guofeng, head of the financial research institute affiliated to the People’s Bank of China.

    The blockchain business, a form of decentralized or fluid database, which keeps track of digital transactions, is “supported by regulators and actively promoted by financial institutions,” Xue said.

  • panther341

    Hi TN – been working to get ready for a garage sale. Cleaning out my garage. Then today sidetracked on another project.

    I notice AAPL is not happy today.

    BBBY reported last night as did ADBE and FDX. FDX is the only one up. BBBY looks sad.

    You probly saw that Toys R Us filed for bankruptcy yesterday.

    gold is up and dollar flat ahead of FOMC.

  • Trading_Nymph

    Hi Panther, Good luck on the sale. Minimalism and Decluttering is the trend we are following, lol. Waiting for Yellen and her Pearls. AAPL is just talk about IPhone preorders dropping (still surprised that anyone is so gaga for the newest one). Market is so surreal to me…lol.

  • panther341

    lunch break to see what’s happening.

    garage sale: don’t care if it sells or not! What doesn’t will go to Good Will. There are a couple of guys at the Good Will donation place who know my car by sight. As you say – it is more about de-cluttering.

    next door neighbor estate sale was this past weekend and that is always a wake up call. I had started sooner – remember my “wrapping paper closet”????

    another neighbor whose husband is on second bout with cancer started planning the garage sale this weekend about 2 months ago and I am helping and adding my own stuff. They have lived in same house 35 years! I have only been here 19 years. LOL

  • Trading_Nymph

    Unchanged, lower inflation estimates for next year. Hurricanes limited.

  • Trading_Nymph

    lol, I remember the wrapping paper closet. Hope your neighbor beats cancer again! I want to move, but I can’t think of any other place in the world that has no snow, no hurricanes, no tornadoes and warm weather with not much rain….yes an earthquake here or there. Oh and political calm. So far even Italy can’t beat California. lol.

  • panther341

    If either they or I move – it will be here – just smaller and less to take care of and dust. The more room you have – the more clutter you keep.

  • panther341