The current US air strikes in Iraq are unlikely to have a significant impact on defense spending or oil prices, Goldman Sachs writes, unless the scale of the conflict changes considerably. Evidence from past US conflicts that were similar in scale also suggests little impact on confidence and at most mixed evidence of a flight-to-safety effect in financial markets. The exchange of sanctions with Russia - a relatively minor US trading partner - is also likely to have only a modest impact on the US economy. Of course, Goldman caveats, both situations are highly unpredictable; as they expect little reaction to recent events from Fed officials, who have generally not discussed conflicts of this magnitude unless accompanied by other economic concerns, such as a large rise in oil prices.
While there have been many socio-economic 'explanations for the recent events in Ferguson, many of which have exceeded the realm of the factual and have brazenly encroached on feelings, emotions, heartstrings, and so on, the unpleasant reality is that much of what has transpired not only in the small 21,000-person St. Louis suburban community, but what is taking place across all of America has to do with a far simpler phenomenon: the rise of poverty and the destruction of America's middle class.
I was left slack-jawed as I listened to an interview on financial media between the host and guest. I have always enjoyed as well as respected the host even though many times I may totally disagree. However, as for the guest being interviewed, not only did I disagree: I lost quite a bit of respect for. During the interview the questions were posed as to why people (investors et al) harbor these feelings of angst as to whether or not they should get in, get out, etc,, etc. The guest then went on to use data points, math, trend references, and any other metric available within a snake oil sales bag as to prove his point: Where people not believing in this market rally along with those who’ve not participated are, (and I quote) “Idiots.” I have only one answer to that statement: What you’ve just demonstrated is exactly why people with more than half a brain aren’t buying your message: You are insulting their/our intelligence.
The current 'boom'in energy production, the hangover from the housing bubble, and the long-term decline in manufacturing employment are combining to shift the employment profile of the US economy. But as Deloitte Unioversity press notes, the national story of slow recovery obscures the more complicated regional picture: As is the case during most business cycles, the pace of recovery has been very uneven among the states. At present, only 16 states plus the District of Columbia have employment rates at least one percent higher than they were prior to the start of the recession. Overall, as the following chart shows, Americans have been struggling to find work, but some states and industries have had an easier time than others.
Earlier we joked that "it is rumored, although unlikely, that a city devolving into a state of emergency and actual curfew, will be enough for the president to take a break from his golf game and make a teleprompted statement later today." Just a few short hours later, in a stunning development and in what may well be a first for the president, Obama announced he planned to take a break in the middle of his Martha's Vineyard vacation and return to Washington on Sunday night for "unspecified meetings with Vice President Joe Biden and other advisers."
Or, as we like to call it, a promotion for the latest Keynesian GDP-boosting voodoo cult: the busted Humvee falacy.
While the Ebola outbreak in west Africa has long since left the "under control" stage, things are about to go from worse to inconceivable for the poverty stricken African nations, after Liberian officials said they Ebola could soon spread through the capital's largest slum after residents raided a quarantine center for suspected patients and took items including blood-stained sheets and mattresses. And speaking of spreading, what many have feared may have come to pass after Spain announced it was investigating a suspected case of Ebola after a Nigerian man presented symptoms of the virus at a hospital in Alicante several days after flying in from the West African country. But even that is nothing compared to what may transpire if what the Times of India reported moments ago, turns out to be accurate: three persons from Ebola-affected Nigeria, who arrived here Saturday morning, have been admitted to the Ram Manohar Lohia Hospital for screening and treatment if required.
As we reported last night, when the Ferguson curfew hitting at midnight, while most of the protesters dispersed, many still remained on the streets despite a clear warning by the police department that anyone still rioting/looting/protesting would be arrested. Which is when things went from bad to worse for yet another sequential night, and culminated with the arrest of seven people and the shooting of an unknown person who is currently in critical condition.
Ferguson Protesters Refuse To Leave As Midnight Curfew Passes; Police In Riot Gear Present: Live FeedsSubmitted by Tyler Durden on 08/16/2014 - 23:56
As reported earlier, the governor of Missouri announced earlier his afternoon that starting midnight, a curfew will be imposed on Ferguson until 5 am as part of the state of emergency unviled by the governor. The only problem is that with about an hour to go, the protesters have filled the streets and are refusing to disperse, even as police in riot gear is present and roadblocks have been setup. So will this be another violent night, this time with mass arrests, as the Ferguson population violates the governor's curfew, or will everyone manage to get along? Track the events in real time as they are about to unfold with these three live feeds.
"God willing, we will raise the flag of Allah in the White House." This is what an ISIS militant told the camera when we watched the first two parts of Vice News' groundbreaking inside look into the Islamic State's caliphate. And while we still don't know if ISIS is anywhere near close to making good on its threat to the American president's place of residence, here are the next two parts of Vice's 5-part "Islamic State" series.
Why can't, or rather won't, the Fed let the bubble market collapse once again? Simple - as the following chart shows, the illusion of wealth is now most critical when preserving the myth of the welfare state: some 50% of all US pension fund assets are invested in stocks and only 20% in Treasurys.
It was only a matter of time before Ferguson became the Americanized version of Gaza. After last night's looting in which the local police was inexplicably instructed to stand down by the state highway patrol, moments ago Missouri's governor ,Jay Nixon, issued a local state of emergency and imposed a nighttime curfew lasting from midnight until 5 am. As the WSJ reports, at the Greater St. Mark Family Church in St. Louis, Gov. Jay Nixon said the overwhelming number of protesters have been peaceful. But the governor said he would not allow a small number of violent rioters to emerge again in the wake of a police-involved fatal shooting of 18-year-old Michael Brown one week ago. "If we are going to have justice, we must first have and maintain peace," the governor said adding that this is a test if the "town can break the cycle of fear." From where we stand, the answer so far is a resounding no.
President Obama has once again proved his irrelevance and uselessness by failing to say anything meaningful on the disturbing events of the past week. In fact, he only decided to address it personally and publicly yesterday after being heavily criticized for issuing a press release about the party he attended in Martha’s Vineyard as civilians in Missouri clashed with a paramilitary police force. Despite Obama’s complete apathy, there are some Congressmen forcefully speaking out against the trend from “both sides” of the increasingly meaningless Republican and Democrat divide. The most noteworthy thus far appears to be Democrat Rep. Hank Johnson of Georgia’s 4th Congressional district. In fact, he has sent a Dear Colleague letter to fellow representatives of his intention to introduce the Stop Militarizing Law Enforcement Act in September when Congress returns from recess.
At the end of July, 2014, an article was distributed called “seven charts that leave you no choice but to feel optimistic about the US economy”. Although the facts that they presented are correct, the conclusion that they drew is not. In the following sections, we will examine and refute each of the seven pieces of "evidence" that were presented.
Mission Creep: From Rescuing Iraq Refuges, The US Is Now Assisting Kurds In Fighting ISIS With Drones, F-18sSubmitted by Tyler Durden on 08/16/2014 - 18:32
Just over a week ago, Obama announced that the US military intervention in Iraq would be solely under the pretext of "humanitarian intervention" while US troops would be deployed exclusively as "advisers", and nothing else. 7 days later, the siege on Mount Sinjar is virtually over with the US announcing that "far fewer Iraqi refugees were found on mount Sinjar", and yet the US finds it difficult to leave: something which the current president crusaded against his predecessor over. And today it was finally confirmed that the latest US airborne assault of Iraq (so far without a land invasion force) has just suffered terminal mission creep, when US airstrikes, by both F-18s and drones, were used not to protect and safeguard the besieged refuges but to aid Kuridsh forces in retaking the critical Mosul dam from ISIS militants who took control of the critical piece of infrastructure in early August.