Financial Services Authority

Oil, War, & Drastic Global Change

The consequences of all this will be felt all over the world, and for a long time to come. All of our economic systems run on oil, so many jobs are related to it, so many ‘fields’ in the economy, and no, things won’t get easier when oil is at $20 or $10, it’ll be a disaster of biblical proportions, like a swarm of locusts that leaves precious little behind. Squeeze oil and you squeeze the entire economic system. That’s what all the ‘low oil prices are great for the economy’ analysts missed (many still do). Entire nations will undergo drastic changes in leadership and prosperity.

The 'Real' Price Of Oil Is Below $17

"You see a big destruction in the income of the oil and commodity producers," exclaims on analyst but, as Bloomberg notes, while oil prices flashing across traders' terminals are at the lowest in a decade, in real terms the collapse is considerably deeper. Adjusted for inflation, WTI is its lowest since 2002 and worse still Saudi Light Crude is trading at below $17 (in 1998 dollar terms) - the lowest since the 1980s...

The Mystery Of Dubai's Vaporized Gold: The Plot Thickens

Now that the gold-trading company at the nexus of what may have been the world's biggest gold smuggling ring in history has imploded seemingly overnight, vaporizing countless tons of physical gold and unknown amounts of client cash, even more questions remain.

Frontrunning: December 15

  • Global stocks rise but oil, Fed keep investors nervous (Reuters)
  • Janet Yellen: An orthodox economist for unorthodox times (Reuters)
  • House Democrats Said to Be Open to Lifting Oil Export Ban (BBG)
  • Don't Count on an Oil Rally If U.S. Crude Export Ban Is Lifted (BBG)
  • Germany welcomes 34-state Islamic military alliance against terrorism (Reuters)
  • U.S. soldier Bergdahl may face life sentence in court-martial over desertion (Reuters)

A Close Encounter With Jon Corzine

Jon Corzine had an illustrious career in investment banking, rising to the very top of Goldman Sachs, until he got pushed out in 1999. He subsequently decided to try his luck in politics, and was eventually elected as a Senator from New Jersey in 2001, then Governor in 2006. After losing to Chris Christie in 2010, Corzine was promptly hired as the CEO of MF Global. He was back in the game of finance - and with something to prove. While the majority of voters in New Jersey breathed a sigh of relief, the clients of MF Global could not imagine the disaster that would unfold.

GoldCore's picture

Britain's former chairman of the  Financial Services Authority (FSA), Lord Adair Turner, warned that the UK could be repeating the 2008 financial crisis by fueling the property market ... When money is debased by monetary authorities on an industrial scale, the results can be catastrophic ...

Scandal: Bank Of England Encouraged Currency Manipulation By Banks

Raise your hands if you are surprised that, as has emerged, virtually every major bank was manipulating currencies (and everything else) whether as part of the "Bandits' Club", the "Cartel" or some other - until recently- secret message room. That's what we thought. Now raise your hand if you thought the manipulation could be so pervasive, so glaring and so in your face, that even the oldest central bank - the Bank of England - and who knows how many other monetary authorities, were openly encouraging traders from these private banks to do more of the illegal activity they had been engaging in - namely manipulating currencies - with their explicit blessing knowing very well such behavior is undisputedly illegal. We hope at least one or two hands went up, because which it is one thing to be cynical about what is going on behind the scenes, it is something else to see the edifice of global corruption and criminality, whose only purpose was to preserve the status quo, unwinding before your very eyes substantiated by actual facts.

Frontrunning: December 27

  • Millions of Tons of Metals Stashed in Shadow Warehouses (WSJ)
  • Moguls Rent South Dakota Addresses to Dodge Taxes Forever  (BBG)
  • Fastest Japan Inflation Since ’08 Stokes Wage Pressure (BBG)
  • Thai crisis deepens as army chief hints at intervention (Reuters)
  • Anti-Assad Lebanese ex-minister killed in Beirut bomb (Reuters)
  • Foreigners Unload Turkey Bonds as Probe Tarnishes Erdogan Growth  (BBG)
  • Small ISS Change Shakes Up Boards: Tweak to Influential Shareholder Adviser's Recommendations Has Directors Rethinking Proposals (WSJ)
  • Japan’s Nishimura Calls for Quick Corporate Tax Cut to Under 30% (BBG)
  • Japan's Abe bets U.S. alliance, ratings can weather shrine visit (Reuters)

October FOMC Week Starts With Traditional Overnight Meltup

Just as it is easy being a weatherman in San Diego ("the weather will be... nice. Back to you"), so the same inductive analysis can be applied to another week of stocks in Bernanke's centrally planned market: "stocks will be... up." Sure enough, as we enter October's last week where the key events will be the conclusion of the S&P earnings season and the October FOMC announcement (not much prop bets on a surprise tapering announcement this time), overnight futures have experienced the latest off the gates, JPY momentum ignition driven melt up.