Archive - Dec 2014 - Blog entry

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With Oil at and Ruble at Critical levels, how does Russia stay afloat on the Geo-political and macro-economic stage

Has too much bearish sentiment been priced in too fast in the price of oil? 

The story here is not Oil; it’s about a massive bubble in risk assets fueled by borrowed Dollars blowing up. The last time around it was a housing bubble. This time it’s an EVERYTHING bubble. And Oil is just the canary in the coalmine.

Unfortunately this phenomenon is often described using the psyops captured and subverted term 'chemtrails'.........

Phibro could have the ability to mask its activity in Occidental’s hedging activity. Speaking with traders within the oil complex, I learned that there has been heavy trading activity on the OTC market on the backend of the oil curve. 

The fundamental issue confronting investors is about supply and demand.  In recent weeks, as energy prices and other industrial commodity prices fell, investors focused on supply.  The stimulative effect of the fall in prices, and the likely policy response by some major central banks, such as the ECB, and possibly the BOJ.   This was good for equity markets and weighed on the euro and yen. 

The New York Times is the paper of Paul Krugman and the Federal Reserve and central banks. It rarely has a critical word to say about central banks and the current fiat monetary system. Conversely, it rarely has a positive word to say about gold. The article suggests a realisation that currency wars are set to intensify with gold again becoming an important monetary and geo-political asset.

The largest economy of the Eurozone is showing important signs of fatigue...

From here to larceny!

The only reason this bond bubble exists isn`t due to the lower price of oil, it is directly a result of too much cheap liquidity via ridiculously low interest rates by central banks. 

This is a MAJOR warning signal that the great “recovery” in risk assets was ending. The Fed spent over $4 trillion and managed to create another stock market bubble, but that bubble is ending.

The US dollar's run stopped last week, but not before new highs were recorded against the euro, sterling, and the yen.   By the end of the week, the euro had risen 1.4%, sterling 0.9%, and the yen had risen as much as the two of them put together.  It was the biggest weekly gain for the yen in 16-months.  

There is one pressing question that international investors will be mulling this weekend:  How far and how long is the dollar's correction?   

The man who turned the world into a debtor...

HELLO ... MAINSTREAM MEDIA ... ANYONE HOME?