US Oil Rig Count Rises At Fastest Rate Since Jan 2010

With inventories once again on the rise, demand set to seasonally tumble, and production on the rise, the lagged response to the bounce in crude prices continues in the US oil rig count, rising 3 last week to 374. This is the 8th rig count rise in the last 9 weeks. The 58 rig rise (+18% off the lows) is the fastest since Jan 2010. Oil prices had melted up all day (despite record OPEC production) as the USD weakened, and extended gains despite the rig count rise.

Peter Schiff Slams The Fed's 'Loud Talk, No Stick' Policy

Theodore Roosevelt’s famous mantra “speak softly and carry a big stick” suggested that the United States should seek to avoid creating controversies and expectations through loose or rash pronouncements, but be prepared to act decisively, with the most powerful weaponry, when the time came. More than a century later, the Federal Reserve has stood Teddy’s maxim on its head. As far as Janet Yellen and her colleagues at the Fed are concerned, the Fed should speak as loudly, frequently, and as circularly as possible to conceal that they are holding no stick whatsoever.

Oil Surges After OPEC Production Hits Record High: Here's Why

Despite the return of the record OPEC oil production, crude is now surging for one simple reason: oil is inversely correlated with the dollar. And thanks to today GDP shock, which showed that the US economy grew far slower than expected, the dollar has crashed. Confused? Don't be: "Dollar weakness follows disappointing U.S. GDP data, consumer confidence." As a result, ugly economic data has sent the dollar tumbling, oil soaring, and the S&P near all timehighs. Q.E.D.

Merkel Ignores Nation's "Anxiety & Fear"; No Change To Open-Door Migration Policy

Merkel refuses to admit that she is wrong and will not reverse her refugee policy despite all the problems, attacks, rapes, and terror. This is the precise reason why career politicians are no longer acceptable. They will never defend the people nor will they ever admit a mistake. She is making a decision for all of Europe and this amounts to a completely undemocratic position whereby no citizen of any other member States has any right to object or vote her out of office.

US Admits It "Found A Problem" In Calculation Of GDP

For years we have complained against both the BLS' and the BEA's comical seasonal adjustments, which "serve" just one purpose: to goalseek the data to a desired, politically-mandated outcome, and which culminated last May when the Department of Commerce announced it would seasonally adjust last year's woeful Q1 GDP data not once but twice in order to get a better result.  Now, it appears that there indeed was a problem.

"Hope"? Nope...!

Despite the protestations that everything will be awesome from Hillbama, the American people strongly disagree. The gap between tumbling 'expectations' (77.8) and 'current conditions' (109.0) is at its worst (least hopeful) since August 2006... shortly before overall confidence crashed in America.

And Now: The "Closest, Nastiest, Most Unpredictable" Campaign You Can Imagine

America’s about to endure the closest, nastiest, most unpredictable presidential election in more than three decades. Not since Jimmy Carter and Ronald Reagan ran against each other in 1980 has the choice been so stark, the warnings from each candidate about the other so dire, the likely outcome so murky. As this year’s political conventions end, there’s no clear favorite. But watch the polls next week. The leader in the first polls conducted entirely after the convention ends has won the White House every time since 1948.

Charting The Difference Between The Original And Revised GDP

While the 1.2% Q2 GDP print was so bad that it sent both oil and stocks higher, now that bad news is again good news as it means no Fed rate hikes for the foreseeable future, a key reason for the weakness was the adjustment of historical data as part of the BEA's annual data revision. The full summary is shown in the chart below.

USDJPY Plunges Back To Post-BoJ Lows, Gold Jumps After GDP

After the illiquid chaos of the last 24 hours, USDJPY is now pressing lower (Yen stronger) once again (under 103) after the gravely disappointing GDP data. Gold, and silver, are jumping higher and bond yields tumbling...

Why Social Fragmentation Suits The Powers That Be

The Elites have successfully revolted against the political and economic constraints on their wealth and power, and now the unprivileged, unprotected non-Elites are rebelling in the only way left open to them: voting for anyone who claims to be outside the privileged Elites that dominate our society and economy.

ExxonMobil Tumbles To 2-Month Lows After Earnings Miss Worst Analyst Expectation

But, but, but the dividend yield, the oil recovery? ExxonMobil is down almost 3% in the pre-market to 2-month lows as it misses earnings expectations drastically (+41c vs 64c exp.. below the lowest expectation of +55c). Production levels also missed expectations as it appears the oil glut has trickled down to motor fuels, dragging refinery margins notably lower.