Christmas is over! The countdown has begun! And with it the days of reflection, looking back and looking ahead. That is exactly what we do every day. Likewise today; what has the Bitcoin price done in recent days and what does that say about the (near) future? We use the charts in which each candle represents one hour, then 1 day and then one week. Prices are in dollars. Rising line The downward trend that had started a long time ago has broken up on 21 December. See blue circle. It did not cause general euphoria, but slowly the higher regions were sought out again. The rising grey trend line seemed to act as support, but that support turned out to be too weak on the 26th. As a ceiling, it has been looked up twice, but from last night at 7:00 PM the line was turned back.
Grey area If we look at a slightly longer term, on the daily chart, we see that the price is moving within a certain grey area, the upside of which has recently been tested. If there is no further decline from this point, and the middle line (USD 48,600 limit / EUR 42,900) is thus respected, this is a sign that the upward direction can be maintained and that trading at a slightly higher level.
Solid floor
On the weekly chart, we see the same grey area that the price is now in. The horizontal line is also visible, which (as described above) clearly shows that it has been honoured for a long time (from the beginning of this year). We also see a Moving Average, but now one that uses the past 50 candles as an average (blue line). This blue line also coincides with the horizontal line on the daily chart. Again a signal to take into account a solid floor. Flywheel A solid floor sounds nice, but it doesn't mean that the price will go up. In recent times, outbreaks upwards have been rather weak. A truly bullish sentiment should be triggered by breaking news. First, the $50,000 limit (EUR 44,100) can be claimed and then, to get out of the grey area, the $52,000 limit (EUR 45,900). That could act as a flywheel, triggering an increasingly bullish sentiment. If that doesn't happen, there's a good chance of sideways movement within this zone, with the danger that if the $48,600 floor is broken, it could quickly go downhill. With the first limit at the bottom of 45,500 (40,100 euros) and the second limit 42,000 dollars (37,000 euros).
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In today's editorial I'm going to show how the implementation of CBDCs, which stands for Central Bank Digital Currencies, and how they are going to change the World of money, banking and the way we live - forever.
With the most disturbing thing being the amount of control it will create over your life via the implementation of carbon & social credit scores which have already been successfully trialled. In effect, the Government will own you and tell you exactly how, when and what you will spend your money on. And no, I’m not scaremongering or exaggerating here, this is coming and it's already started. A CBDC would be implemented using a database run by the central bank & government, notice I didn't mention any banks here. Why? Because a CBDC will cause the end of the modern day banking sector. Because the Central Bank will make transactions with you directly making it possible for a central bank to keep track of every single transaction you make. Commercial banks still have control right now creating competition around lending. But with a CBDC they want to use something different than credit scores because they will ban diversity unfriendly credit scores in favour of credit scores. Need a mortgage? Let me just check your social credit score here… Socialism, at the click of a button: They can simply give money to some people, take money from others. Imagine you or your family worked and saved for decades and the Central Bank just pressed a button and sent your life savings to the poorest in society because they decided that they needed to redistribute the wealth. They don't see it as theft because it's the law and for the greater good Never again will you be able to withdraw cash from the bank because it won’t exist anymore, with cash you're in control but with a CBDC you have no control You have to just trust the government that your money is actually there Spend it or lose it! They want to create a world of spenders and get rid of savers. In China, the CBDC was programmed with an expiration date, which encouraged spending and discouraged money from sitting in a savings account. In the end, 90% of the vouchers were spent in the allotted time the Government wanted. Why do Governments want this? This is due to the velocity of money principle where the government earns taxes every time the money is spent. So what are the stages you need to look out for then? NOW - Stage 1: Stage one has already been achieved by issuing free stimulus and this worked well because very few people saved the money & instead they spent it, creating more velocity of money & inflation. The inflation was good for the Government because it inflated away the government debt at the expense of our household budgets becoming more expensive. 2-3 yrs - Stage 2: Is to issue welfare payments or UBI via a digital wallet. This hasn't officially started yet in the US, but some other countries have now adopted this method of payment delivery. 1-4 yrs - Stage 3: Incentive for the public to download the government digital wallet and get some free CBDC like they did in China, because who’s going to turn down free money? 1-7 yrs - Stage 4: Nationwide rollout of CBDC. With all employees now being paid not into their bank accounts but into their digital wallets. Employers will be mandated to do this and employees will be penalized for not using the digital wallets. At this point, dirty virus spreading cash will be phased out and no longer printed anymore. Any cash that makes its way back to the bank will be destroyed and converted into CBDC 20+ yrs -Stage 5: ONE CBDC to rule them all. If you’ve ever studied financial history, you'll know that there used to be tens of thousands of different currencies around the world, now there are just 180 left Gold is a commodity that has historically been viewed as a good hedge against inflation, which is why the precious metal’s price performance over the last year has been a bit puzzling. The SPDR Gold Shares ETF (NYSEARCA:GLD), which is intended to reflect the performance of the price of gold bullion, is down over 8% year-to-date and has been a major underperformer. Meanwhile, inflationary pressures have persisted throughout the year and interest rates have been held at historic lows, which in theory should have led to a strong year for gold investors.
While this commodity certainly hasn’t been the strongest performer as of late, there are still plenty of narratives that support the possibility of a gold rally in 2022. If we continue seeing alarming signs of inflation and if nominal yields are held lower, stocks that offer exposure to the safe-haven commodity could have room to run. That’s why it’s a good idea to get familiar with some of the best gold stocks in the market as we head into the new year. 1. Newmont Corporation (NYSE:NEM) Gold mining stocks offer an interesting way to gain exposure to the commodity, as they typically will rise and fall with the price of gold, yet can also remain profitable companies even if the price of gold is declining. Newmont Corporation is certainly one of the best options to consider if you are interested in gold miners, as it’s the world’s largest gold producer and a company with a rock-solid balance sheet. It’s also a stock that offers exposure to copper, which is another commodity that has been a strong performer in 2021 and could continue benefitting from high demand as the global economy recovers. Newmont has assets and operations in North America, South America, Australia/New Zealand, and Africa, and generates the majority of its revenue from gold from those locations. It’s the type of investment that market participants love to buy when there is volatility and uncertainty at play in the market, which means it’s a great pick if you think next year could be a bumpy ride for the economy. It’s also a stock that offers a very attractive dividend yield of 3.75%, which is certainly appealing given inflation concerns. This could be one of the first stocks to rally should gold prices head higher in the coming months, which absolutely makes it worth watching as we begin the new year. 2. Royal Gold Inc (NASDAQ:RGLD) Another way to add exposure to gold via equities is with gold streaming and royalty companies like Royal Gold. These are businesses that pay fees to mining companies in exchange for either a percentage of the mine’s revenue or the ability to purchase precious metals in the future at a fixed price. This is an attractive model because it allows Royal Gold to potentially take advantage of gains in the precious metals sector without a lot of the costs and risks that are associated with mining operations. The company has a diverse portfolio with revenue from 44 producing properties, and over $1.1 billion of liquidity provides plenty of room for Royal Gold to seek out new deals. The stock is also worth a look thanks to its long history of dividend growth, as Royal Gold announced its 21st consecutive annual dividend increase back in November. After a 17% dividend increase, the stock is certainly one of the more attractive gold stocks to consider for 2022. Finally, it’s worth noting that many of the company’s operating counterparties have dealt with issues related to COVID-19 that stunted mining production, which means a rebound is likely on the cards next year. 3. Franco-Nevada Corp (NYSE:FNV) Finally, we have another gold-focused royalty and streaming company called Franco-Nevada Corp. The company claims to have the most diverse royalty and streaming portfolio by asset, operator, and country, which includes 324 mining assets and 82 energy assets. It’s also worth mentioning Franco-Nevada’s balance sheet strength, as it's one of the only companies in the mining industry without any debt. The strong balance sheet and efficient business model has allowed the company to reward long-term shareholders with annual dividend increases for 14 consecutive years, which is certainly another positive to consider. In Q3, Franco-Nevada Corp reported revenue growth of 13% to $316.3 million and Adjusted EBITDA growth of 15% to $269.8 million. The company is on its way towards delivering a record-breaking 2021, although the share price is well off highs at this time. It’s certainly one of the best gold stocks to watch in 2022, so keep an eye on how it performs in the coming weeks.
The “Red Mansion” case, in which dozens of sex slaves were detained in Shanghai, became a hot topic on Weibo but was quickly deleted. The Shanghai media have avoided the issue. However, the incident has raised concerns about the involvement of many high-ranking CCP figures behind the scenes. In November of this year, the judge who tried the “Xiao Hong Lou” case was fired, attracting netizens’ attention. As a result, it became a new hot search keyword on Weibo in early December. The topic “#beginning and ending of the Xiao Hong Lou case in Shanghai#” received more than 600 million clicks in just a few days. But by the early morning of Dec. 5, 600 million streams were said to have disappeared.
As previously reported by mainland media, the “Little Red House” case took place from 2000 to 2019. When Zhao Fuqiang, a seamster born in a rural area, started his business by running a barbershop in Shanghai to sell sex. The company used bribery, alcohol, and sex to bring in officials of all levels to grow the business. Zhao Fuqiang first forced his wife into prostitution, then forced other women he tricked to satisfy his lust by teaching, imprisoning, and beating them. They provide sexual services to the public, even taking female eggs through a surgical procedure, selling them, and offering surrogacy for Zhao Fuqiang and officials. Zhao Fuqiang married several female victims, then trained them to become sex slave managers in the “Red Mansion.” He also hired the husbands or family members of many sex slaves as security guards or staff. Zhao Fuqiang also installed many hidden cameras in the “Red Mansion” to record photos and videos of officials who came to indulge in debauchery and used them to blackmail. The report also mentions that the female victims called the police for help. Still, they were not accepted, and that some of the women who managed to escape from the “Red Mansion” were brought straight back by the police. In 2019 and 2020, the Shanghai Second Intermediate Court sentenced Zhao to death, and 37 Red Villa managers and other employees received various jail terms. In addition, political, legal, and police officials of the Yangpu District were also convicted. The incident sparked a heated debate on Weibo. Many netizens are shocked that such a horrible forced prostitution case has appeared in today’s society. They question how much the degradation of public power has allowed Zhao Fuqiang to do anything he wants. Others argued that the sentence for Zhao Fuqiang and local officials was too light. An article quoted a former police officer at the Shanghai Public Security Bureau saying that Zhao Fuqiang spent a long time doing business in the Yangpu district. Through money and sex transactions, he had a strong relationship with internal government agencies. Finally, as these relationships were strengthened, he felt that he was then unstoppable. The most senior official convicted in the “Red Mansion” case is Lu Yan, a Standing Committee of the Yangpu CCP District Party Committee and Secretary of the Political and Legal Affairs Commission in Shanghai. But public opinion has questioned the accuracy of the amount of money generated by Zhao Fuqiang, said to be around $156 million. When the “Red mansion” case was reported on Weibo, hardly any media in Shanghai reported it. Shanghai is the political seat of Jiang Zemin’s faction in the Chinese Communist Party. It is currently dominated by Xi’s close associate Li Qiang. Therefore, public opinion speculates that the “Red Mansion” case may be related to a power struggle within the CCP. Mianzi, or face is something that Chinese people think about more than any other. Be it the nation's leaders, or its common citizens, the consideration of saving face is always the first thing they think about before they act. Since face is so important, it's worth asking, what exactly is it?
What is face? If you check a dictionary, you'll see that the original intended meaning of mianzi (面子) was a noun for the face, surface, or exterior of something. Later, the meaning of the word extended to include someone's feelings or the face value of something. Finally, the word came to mean "fame", "prestige" or "reputation". In the daily lives of Chinese people, the meaning of face is particularly complicated, as giving face (or not) to someone oftentimes isn't communicated directly through words, but is instead something that must be perceived through actions. The absolute concern over saving face (sometimes taken to the extreme) has truly remained a cultural phenomenon unique to Chinese people, and today it's one of the few social elements left that is still inextricably linked with Chinese traditions that are thousands of years old. Unsurprisingly, foreigners upon seeing face-saving measures in action sometimes cannot help but shake their heads and judge it wholly excessive. "Do not wash your dirty linen in public" There's a common saying in China that you "do not wash your dirty linen in public" (家丑不可外扬). This saying is synonymous with that of saving face. When something disgraceful happens that could be harmful to the family name or the family, such as an unruly child, domestic abuse, a uxorious husband etc., Chinese would rather repress their feelings inwardly than speak out, for fear that if others knew that they would lose face, and be ridiculed (in broader terms, such "disgraceful" events that happen within China being leaked internationally can also be considered as losing face). This absolute concern about outward appearances can be taken to such extremes that people’s lives become a living hell. For example, when Chinese mediate their domestic disputes, you'll oftentimes hear the following phrase: "swallowing a broken front tooth" (打破门牙往肚里咽), which is to say that they'd rather swallow their own tooth than spit it out and lose face in front of others. Face as moral integrity? Saving face can also manifest itself as a form of moral integrity, as seen in such phrases as: "I'd rather starve to death than be disloyal" (饿死事小,失节事大) or "It's better to be destroyed than give up your principals, it's better to die in glory than live in dishonour" (宁为玉碎,不为瓦全). Although equally extreme, concern over this kind of mianzi is at least somewhat admirable. However, more often than not, Chinese people’s concern of saving face really only refers to the concern of saving their own, their family’s or their friend's face, and they could care less about the face of strangers, perhaps even intentionally hurting it. There’s a saying for that too: "good deeds don't leave the house, bad deeds travel thousands of miles" (好事不出门,坏事行千里). Stories from day-to-day life seem to confirm this point: some people are so bored that they cause others to lose face just to pass the time. Saving face, taken to extremes 1) The happily married couple Long ago, I was told a near-ridiculous story. An old married couple, who had been together for many decades, had never argued with each other. They had no children, and no one had ever seen either of them do anything unseemly. Nearly all of the people who lived in the area thought that they were the textbook definition of a "harmonious couple" (夫妻和睦), and that their life together must be quite happy. In fact, since their wedding day, this happy old couple had never slept in the same bed, and had never been able to express their feelings to one another. Yet, the vanity for both sides was so strong, and they cared so much about saving face that they never let any of this known, and they absolutely refused to get divorced, so life just dragged on, and on. All for the sake of saving face, they each wore a smile in front of others, while they dried their tears in private. 2) "Treating" and "gifting" To save face, Chinese people often "treat" others, trying to act bigger than they truly are (打肿脸充胖子). Regardless of whether it is to please a single person or a room full of people, they’ll always usher the waiters to fill teapot or bring another dish out to the already full table, all the while repeatedly apologizing that "there's not enough food". To save face, it is said that Chinese people must "break the pan to sell the iron" (摔锅卖铁) to afford constantly giving gifts to others, and the number of gifting occasions is seemingly endless: weddings, a baby's first month, a 10th birthday, a 40th birthday, a school graduation, enlisting in the military, receiving a job promotion, moving into a new house, birthdays etc. That is to say, saving face causes Chinese people to "eat losses"; they must constantly grin and bear it, for fear that if they don’t, others will gossip about them being stingy. This concern over saving face can even lead people to break the law, get arrested and be carted off to jail. 3) Face and business All Chinese people are aware that some will "use dirty tricks to mislead their friends" (鬼迷熟人). This saying describes when a consumer continues to buy something from an acquaintance or friend despite being deceived and taken advantage of constantly (via paying for defective, inferior, sub-standard or even dangerous products). Why do such situations keep happening? In short, because Chinese people are so concerned about saving face, they'd rather let their friends cheat them, than yell at them and have people think that they have no self-restraint or lack class. Of course, many businesspersons thoroughly understand this, and make money by deliberately deceiving their friends. China's problematic "debt chain" phenomenon (such as in Wenzhou) is also closely related with company bosses saving face: they'd rather borrow money from multiple parties at increasingly unsustainable interest rates than have others know that their company is broke. Face throughout history Chinese people have long held face in the highest regard. As early as the Spring and Autumn Period, there was the "Lintong Dou Bao" story (临潼斗宝), now used as an idiomatic phrase meaning "to show off one's wealth". In the Eastern Jin Dynasty, there were the "Shichong Doufu" and "Guojiu Doufu" stories (石崇和国舅斗富) about competing with each other for wealth. The last emperor of the Sui Dynasty, Yang Di had trees bound in expensive silks and frequently treated guests to fine meals to exert his face-ness. And in more modern times, the list of extravagant face-saving gestures is simply too long to mention. Is it worth it? Ostensibly, the act of giving or not giving face – regardless of time, place, or situation – is a unilateral decision. But in reality, face is a bilateral affair. If one person doesn't pay attention to the other person's face, then that other person will not be obligated to return the face, or deal with the constraints of doing so. That is to say, the ones who lose are invariably the ones who are concerned about face: even if you think that suffering financial losses is unimportant as compared to the loss of face, other people will still think that you're stupid and foolish. Russia and China will develop shared financial structures to enable them to deepen economic ties in a way that foreign states will be unable to influence, the Kremlin has announced following talks between the countries’ leaders.The move appears to be a response to a series of warnings that Western nations could push to disconnect Russia from the Brussels-based SWIFT financial system as a form of sanctions.
The payment platform underpins the vast majority of international transactions. During the talks on Wednesday, Russian President Vladimir Putin and his Chinese counterpart Xi Jinping called for increasing the share of national currencies in mutual settlements and expanding cooperation to provide Russian and Chinese investors with access to stock markets, said Yuri Ushakov, Putin’s foreign policy advisor. Ushakov said “particular attention was paid to the need to intensify efforts to form an independent financial infrastructure to service trade operations between Russia and China.” “We mean creating an infrastructure that cannot be influenced by third countries,” the Kremlin aide added. Ahead of the video summit, Kremlin Press Secretary Dmitry Peskov hinted that economic discussions were likely to be on the agenda for the two heads of state. Both Russia and China are said to be increasingly looking to move away from using the US dollar as the main currency of international trade, instead using their own denominations to underpin the booming volume of Moscow-Beijing trade. Last week, US Under Secretary of State Victoria Nuland said that the White House, along with a number of Western European nations, was mulling completely isolating Moscow from the global financial system should Russian troops dare to invade Ukraine. Just the day before, Bloomberg had suggested that Washington could target the country’s major banks and even disconnect Moscow from the SWIFT network. At the end of November, the boss of Russia’s state-run oil giant Rosneft, Igor Sechin, accused Washington of manipulating the dollar to further its own interests and said the currency was losing its appeal due to the US Federal Reserve’s policy of quantitative easing – essentially flooding the global economy with an excess supply of money. Earlier this year, Russian Foreign Minister Sergey Lavrov suggested that Beijing and Washington “need to move away from the use of Western-controlled international payment systems.” The top diplomat also accused the US of seeking “to limit the technological development opportunities of both the Russian Federation and the People’s Republic of China.” For the world’s financial markets which have become literally dependent on the pronouncements of central banks, this week is lining up to be one of the most important in a long time. Because this week no less than 4 of the world’s most powerful central banks are each meeting to discuss quantitative easing (debt buying by central banks) and interest rate decisions, and to then ‘inform’ financial markets to what extent they will be kept on life-support stimulus.
First up is the operator of the world’s most influential fiat currency, the US Federal Reserve, whose Federal Open Market Committee (FOMC) meets over two days between Tuesday 14 and Wednesday 15 December, and then tells markets whether it will taper (decelerate it’s interventions) while engaging in Management of Perception Economics (MOPE) about future interest rate hikes (hint: they can’t raise rates). Following this, the Governing Council of the European Central Bank (ECB) meets on Thursday 16 December, and will also then pronounce about if and when it will scale back it’s trillions of interventional asset purchases, the leading two of which the ECB calls an ‘Asset Purchase Programme (APP)’ and a ‘Pandemic Emergency Purchase Programme (PEEP). Also expect ECB jawboning about interest rate increases but no rate move. On the same day, Thursday 16 December, the Bank of England’s Monetary Policy Committee (MPC) meets to also discuss interest rate increases. But the MPC will most likely use the convenient Omicron propaganda (rampant across mainstream UK media) as an excuse to leave UK interest rates unchanged. The same day on Thursday 16 December, the perennial interventionalist Bank of Japan (BoJ) begins a 2-day Monetary Policy Meeting (MPM), and in the same vein will chit-chat about decelerating asset purchases and raising interest rates, but in the end, as usual, the BoJ will do nothing. If you think about it, it’s ludicrous that the world’s so called ‘free market’ financial markets are hanging on the every word of a private banking cartel (the US Federal Reserve) for a signal about whether this same US Fed will scale back (taper) it’s massive interventions (asset purchases) into these so-called ‘free markets’. The same is true of the Fed’s colleagues at the ECB, Bank of England and BoJ. This is literally like a bunch of drug addicts (the markets) waiting to see if a drug cartel has enough drugs to sell to them all, or will the cartel dealers need to ‘taper’ the supply. The question that the mainstream financial media should be asking (but never asks), is why central banks need to intervene in bond and equity markets at all. The answer of course is clear, that without central bank interventions, the entire debt based financial system would implode. Each of these central bank decision making bodies also knows that they are now in unchartered territory and that they have painted themselves into corners with unprecedented asset purchases and historically low interest rates which they cannot reverse without imploding the system, as all the while inflation continues to accelerate across the board. So expect a lot of jawboning from the Fed, ECB, BoE and BoJ, as well as a lot of MOPE. But don't expect anything concrete or any change in direction from these central banks. For in the words of Max Keiser, “You can’t taper a Ponzi”. One hundred trillion dollars—that’s 100,000,000,000,000—is the largest denomination of currency ever issued. 1 The Zimbabwean government issued the Z$100 trillion bill in early 2009, among the last in a series of ever higher denominations distributed as inflation eroded purchasing power. When Zimbabwe attained independence in 1980, Z$2, Z$5, Z$10 and Z$20 denominations circulated, replaced three decades later by bills in the thousands and ultimately in the millions and trillions as the government sought to prop up a weakening economy amid spiralling inflation. Shortly after the Z$100 trillion note began circulating, the Zimbabwean dollar was officially abandoned in favour of foreign currencies. From 2007 to 2008, the local legal tender lost more than 99.9 percent of its value (Hanke 2008). This marked a reversal of fortune from independence, when the value of one Zimbabwe dollar equalled US$1.54. Zimbabwe’s extreme and uncontrollable inflation made it the first—and so far only—country in the 21st century to experience a hyperinflationary episode. Hyperinflation devastates people and countries. Zimbabwe, once considered the breadbasket of Africa, was reduced to the continent’s beggar within a few years; its citizens were pushed into poverty and often forced to emigrate. The country’s experience shows how a relatively self-sustaining nation at independence fell victim to out-of-control inflation and the severe erosion of wealth. The causes of Zimbabwe’s hyperinflation, its effects and how it was stopped are particularly instructive. In his seminal work, Phillip Cagan defined hyperinflation as beginning when monthly inflation rates initially exceed 50 percent. It ends in the month before the rate declines below 50 percent, where it must remain for at least a year (Cagan 1956). Zimbabwe entered the hyperinflationary era in March 2007; the period ended when the nation abandoned its currency in 2009 (Chart 1). Bouts of hyperinflation are mostly accompanied by rapidly increasing money supply needed to finance large fiscal deficits arising from war, revolution, the end of empires and the establishment of new states. Hyperinflation, as Cagan defined it, initially appeared during the French Revolution, when the monthly rate peaked at 143 percent in December 1795. More than a century elapsed before hyperinflation appeared again. During the 20th century, hyperinflation occurred 28 times, often associated with the monetary chaos involving two world wars and the collapse of communism (Bernholz 2003). Zimbabwe’s hyperinflation of 2007–09 represents the world’s 30th occurrence as well as the continent’s second bout (after a 1991–94 episode in the Congo).
It is widely expected that a further cut of 100 basis points to 14 percent will follow this week. The policy differs from all economic textbooks. Normally, policymakers try to curb inflation with interest rate hikes. The inflation rate in Turkey is already above 20 percent. Turks took to the streets last weekend to protest the rising cost of living.
Israel has led a 10-country simulation of a major cyber attack on the global financial system in an attempt to increase cooperation that could help to minimise any potential damage to financial markets and banks. The simulated cyber attack evolved over 10 days, with sensitive data emerging on the dark web along with fake news reports that ultimately caused chaos in global markets and a run on banks.
Participants in the initiative, called “Collective Strength”, included treasury officials from Israel, the United States, the United Kingdom, United Arab Emirates, Austria, Switzerland, Germany, Italy, the Netherlands and Thailand, as well as representatives from the International Monetary Fund, World Bank and Bank of International Settlements. The simulation featured several types of attacks that impacted global foreign exchange and bond markets, liquidity, integrity of data and transactions between importers and exporters. "These events are creating havoc in the financial markets," said a narrator of a film shown to the participants as part of the simulation and seen by Reuters. Israeli government officials said that such threats are possible in the wake of the many high profile cyber attacks on large companies, and that the only way to contain any damage is through global cooperation since current cyber security is not always strong enough. The narrator of the film in the simulation said governments were under pressure to clarify the impact of the attack, which was paralysing the global financial system. “The banks are appealing for emergency liquidity assistance in a multitude of currencies to put a halt to the chaos as counterparties withdraw their funds and limit access to liquidity, leaving the banks in disarray and ruin,” the narrator said. The participants discussed multilateral policies to respond to the crisis, including a coordinated bank holiday, debt repayment grace periods, SWAP/REPO agreements and coordinated delinking from major currencies. "Attackers are 10 steps ahead of the defender," Micha Weis, financial cyber manager at Israel's Finance Ministry, told Reuters. Rahav Shalom-Revivo, head of Israel’s financial cyber engagements, said international collaboration between finance ministries and international organizations “is key for the resilience of the financial eco-system.” The simulation was originally scheduled to take place at the Dubai World Expo but it was moved to Jerusalem due to the Omicron variant of COVID-19, with officials participating over video conference.
2021 Formula 1 World Championship Drivers' Standings
Fitch has become the first rating agency to declare that China Evergrande’s overseas bonds are in default after the world’s most indebted developer failed to make a crucial interest payment this week. The announcement marked the most significant moment yet in the developer’s marathon liquidity crisis that has spread to other businesses across the country’s vast real estate sector and fuelled global concerns about the potential impact on China’s economy. Evergrande, which has liabilities exceeding $300bn, missed a Monday deadline to repay bond coupons totalling $82.5m. The group had still not transferred the funds as of Wednesday in New York, according to people familiar with the matter. Fitch stated that the company did not respond to a request for confirmation on the coupon payments, and it was therefore assuming they had not been made. Neither the company nor the Chinese government has confirmed that Evergrande has defaulted on its debts, though the company said on Friday there was “no guarantee” it could meet its debt repayments as it entered a restructuring process with assistance from local government officials. Fitch also stated on Thursday that Kaisa, another heavily indebted developer that failed to repay a $400m bond that matured on Tuesday, was in restricted default. A person familiar with the situation said that Kaisa was close to signing non-disclosure agreements with advisers to investors.
Evergrande’s debt crisis has for months transfixed international bond markets, where it has borrowed heavily and has about $19bn outstanding, compared with $12bn for Kaisa. Evergrande has missed a series of interest payments since late September, but until this week had avoided default by transferring the funds before the end of 30-day grace periods. Separately on Thursday afternoon, Yi Gang, governor of the People’s Bank of China, told a seminar in Hong Kong that Evergrande’s failure to meet its obligations was a market event and that the rights of investors would be respected. Formula 1 Ethihad Airways Abu Dhabi Grand Prix 2021 - Decision - Mercedes Protest Art. 48.1212/12/2021 |
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