The battle for favoritism among the 'apparent' leaders in Iraq continues. Russia just delivered the second batch of Sukhoi fighter jets (which will be flown by Iraqi pilots and "are ready to provide air support to the armed forces"), and the US unloaded 4,000 additional Hellfire missiles to support Iraq's fight against the Islamist insurgents. While this morning the intelligentsia of mainstream media proclaimed "the situation in Iraq is calming down" predicated on the fact that oil prices were lower and stocks at record highs, we suspect the additional war material to Iraq will do nothing but increase the determination of the "Islamic State" to increase its Caliphate.
Long before 1984 gave us the adjective “Orwellian” to describe the political corruption of language and thought, Thucydides observed how factional struggles for power make words their first victims, "Words had to change their ordinary meaning and to take that which was now given them." Orwell later explained the reason for such degradation of language, "Political speech and writing are largely the defense of the indefensible." The bottom-line is that tyrannical power and its abuses comprise the "indefensible" that must be verbally disguised; which seems to have never been more appropriate than now in the stream of 'disguised' words we are fed every day...
Having had his omnipotence chipped away at last week, President Obama has - seemingly - been pushed too far by the Supreme Court's decision on contraception and Obamacare this morning: The White House stated...
SUPREME COURT DECISION ON CONTRACEPTION COVERAGE JEOPARDIZES HEALTH OF WOMEN EMPLOYED BY THESE COMPANIES
WILL WORK WITH CONGRESS TO MAKE SURE WOMEN AFFECTED BY RULING WILL HAVE SAME ACCESS TO CONTRACEPTION
WILL CONSIDER WHETHER PRESIDENT CAN ACT ON HIS OWN TO MITIGATE EFFECT OF SUPREME COURT RULING
Totalitarian? You decide... One wonders if the phrase "do you know who I am?" was uttered this morning?
U.S. Relies On Law from Governments Which Don’t Even HAVE a Constitution to Justify Assassination of U.S. Citizens By DroneSubmitted by George Washington on 06/30/2014 13:01 -0400
U.S. Relies On Law of Non-Constitutional Countries
Moments ago the US Supreme Court - the same Supreme Court which two years ago upheld Obamacare but as a tax, something the administration has since sternly denied - dealt Obamacare its biggest legal blow to date, and alternatively handing Obamacare opponents their largest court victory yet, when in a 5-4 vote SCOTUS ruled that business owners can object on religious grounds to a provision of President Barack Obama's healthcare law that requires closely held private companies to provide health insurance that covers birth control.
- Yellen Spending Recipe Lacking Key Ingredient: Bigger Wage Gains (BBG)
- Ukraine signs trade agreement with EU, draws Russian threat (Reuters)
- GM Documents Show Senior Executive Had Role in Switch (WSJ)
- Australian Report Postulates Malaysia Airlines Flight 370 Lost Oxygen (WSJ)
- World’s Biggest Debt Load Lures Distressed Funds to China (BBG)
- GPIF Rushing Into Riskier Assets Before Ready, Okina Says (BBG)
- Japan Prices Rise Most Since ’82 on Tax, Utility Fees (BBG)
- Italian Debt Swells to Rival Germany as Bond Yields Slide (BBG)
- China’s Manhattan Project Marred by Ghost Buildings (BBG)
- BOE's Carney Says Rates Won't Rise to Levels Previously Considered Normal (WSJ)
The Real History of the American Strategy for Iraq and the Middle East
"According to the U.S. Energy Information Administration's reference scenario, domestic oil production is going to peak at 14.6 million barrels a day in 2019 and then drop to 12.7 million barrels a day in 2040. Given the 2013 consumption level of 18.9 million barrels of crude a day, the U.S. will never be a net oil exporter under this scenario,... The U.S. crude producers need the flexibility of exporting oil or selling it domestically. As for the political dreams of making the U.S. a major oil exporting power, or even of energy independence backed by the shale boom, they are just that -- dreams."
- Obama Administration Widens Export Potential for U.S. Oil (BBG)
- WTI Pares Gains as U.S. Export Ruling Seen Limited (BBG)
- Senator Cochran defeats Tea Party rival in Mississippi Republican runoff (Reuters)
- Militants attack Iraq air base, U.S. assessment teams deploy (Reuters)
- Maliki rules out national emergency govt (AFP)
- Koch to Start EU Power Trading as It Plans LNG Expansion (BBG)
- Obama Said to Ready Sanctions on Russian Industries (BBG)
- Ghana Sends Plane With $3 Million to Calm World Cup Team (BBG)
- Ghana’s First Hedge Fund Planned by Ex-Exchange Regulator (BBG)
- SEC Is Gearing Up to Focus on Ratings Firms (WSJ)
- Abe Declares Deflation End as Growth Plan Confronts Skeptics (BBG)
The S&P500 has now gone 47 days without a gain or loss of more than 1% - a feat unmatched since 1995, according to AP. Overnight markets are having a weaker session across the board (except the US of course). Even the Nikkei is trading with a weak tone (-0.7%) seemingly unimpressed by the Third Arrow reform announcements from Prime Minister Abe yesterday (and considering in Japan the market is entirely dictated by the BOJ, perhaps they could have at least coordinated a "happy" reception of the revised Abe plan). Either that or they have largely been priced in following the sizable rally in Japanese stocks over the past month or so. Abe outlined about a dozen reforms yesterday including changes to the GPIF investment allocations and a reduction in the corporate tax rate to below 30% from the current level of 35%+. Separately, the Hang Seng Index (-0.06%) and the Shanghai Composite (-0.41%) 98closed lower as traders cited dilutive IPOs as a concern for future equity gains.
It is unclear for now what the catalyst for the $1.70 spike in oil prices is but WTI just touched $107.50 in a hurry. It appears a combination of a WSJ story reporting the Obama administration has quietly cleared the way for the first exports of unrefined American oil in four decades, allowing energy companies to chip away at the long-standing ban on selling U.S. crude overseas (which could theoretically enable them to buy crude (bid price up) and sell for higher prices abroad as we show below); and and Reuters reports that the U.S. military began deploying assessment teams to Iraq with about 40 special operations personnel already in the country (which could mean risks are rising).
Have you noticed that prices are going up rapidly? If so, you are certainly not alone. But Federal Reserve chair Janet Yellen, the Obama administration and the mainstream media would have us believe that inflation is completely under control and exactly where it should be. Perhaps if the highly manipulated numbers that they quote us were real, everything would be fine. But of course the way that the inflation rate is calculated has been changed more than 20 times since the 1970s, and at this point it bears so little relation to reality that it is essentially meaningless. Anyone that has to regularly pay for food, water, gas, electricity or anything else knows that inflation is too high. In fact, if inflation was calculated the same way that it was back in 1980, the inflation rate would be close to 10 percent right now.
- Must be an early winter: Housing Falters as Forecasters See U.S. Sales Dropping (BBG)
- China Property Failures Seen as $33 Billion in Trusts Due (BBG)
- Polish Prime Minister Says Recording Scandal May Trigger Early Election (WSJ)
- Iraqi forces ready push after Obama offers advisers (Reuters)
- Priorities: U.S. cuts aid to Uganda, cancels military exercise over anti-gay law (Reuters)
- Kurds' Takeover of Iraqi City of Kirkuk Strengthens Their Hand (WSJ)
- U.S. says government lab workers possibly exposed to anthrax (Reuters)
- Netflix Up 21% With Tesla: The best U.S. stocks this month are ones that just a few months ago were the biggest losers (BBG)
- Architects of Iraq Invasion Return to Blame Obama (BBG)
- Nato claims Moscow funding anti-fracking groups (FT)
- Lawmakers Skeptical GM Bosses Were Unaware of Defect (WSJ)
- Corinthian Colleges Warns of Possible Shutdown (WSJ)
- Taiwan's Quanta to start mass production of Apple's smartwatch in July (Reuters)
It was two days ago when we reported that America's third crusade in Iraq "Is Not Going As Planned: Iraq Prime Minister Defies US, Accuses Saudi Arabia Of "Genocide"."Sure enough, here comes America's wrath: "the Obama administration is signaling that it wants a new government in Iraq without Prime Minister Nouri al-Maliki, convinced the Shiite leader is unable to reconcile with the nation's Sunni minority and stabilize a volatile political landscape. The U.S. administration is indicating it wants Iraq's political parties to form a new government without Mr. Maliki as he tries to assemble a ruling coalition following elections this past April, U.S. officials say."... The chairwoman of the Senate Intelligence Committee, Sen. Dianne Feinstein (D., Calif.) told a congressional hearing Wednesday: "The Maliki government, candidly, has got to go if you want any reconciliation."
You name the Obama administration scandal/screw-up and Hillary Clinton is distancing herself from it as she prepares to run in 2016 on a clean slate of 'well, I would have done it better/different'. As Reuters reports, recent interviews on Fox and CNN show her claiming she tried but failed to persuade Obama to arm the rebels fighting Syrian President Bashar al-Assad; that NSA spying was "absolutely uncalled for"; and that "changes need to be made at the IRS" seemingly disagreeing with Obama's claims that it was a "phony scandal." With friends (party colleagues) like this, who needs enemies.