The credit-based dollar brought about a new economy. It changed the way people thought and the way their government operated. Now, deep pools of money determine which candidates are presented to voters. And there is a new branch of government: the “Deep State.” It is not mentioned in the Constitution. And it operates above and beyond the visible process of democratic government.
As the deadline for Iran nuclear talks looms, the possibility of a deal which in some way lifts crude export sanctions is starting to be realized. As we warned 2 weeks ago, despite all the rhetoric, a confluence of political factors makes a deal highly likely at this point; and as The Telegraph reports, Iran is a sleeping oil giant holding 9% of the world’s proven oil reserves and with an estimated 2m barrels per day of excess supply already sloshing around international markets, any significant increase in Iranian output could easily trigger a further rout in prices. While OPEC may well clamp down on this in June, as The Telegraph concludes, by then a barrel of oil may already be selling for $20.
President Obama is "blowing up our alliances to secure a deal that paves Iran’s way to a bomb," according to European sources close to the negotiations, and as Washington Free Beacon reports, efforts by the Obama administration to stem criticism of its diplomacy with Iran have included threats to nations involved in the talks, including U.S. allies. France has borne the brunt of Obama's wrath as one source in Europe close to the ongoing diplomacy said the US has begun to adopt a “harsh” stance toward its allies in Paris because "the clarifications expose just how weak the Americans’ deal is shaping up to be."
The market economy is good...
Update: *OBAMA AUTHORIZED LOGISTICAL AND INTELLIGENCE SUPPORT TO GULF, U.S. MILITARY TAKING MILITARY ACTION TO DEFEND SAUDI BORDER, TO DEFEND AGAINST HOUTHI VIOLENCE (so US weapons are being used on both sides)
John McCain - "This is as bizarre as it is misguided – another tragic case of leading from behind.”
Earlier today we reported that, on very short notice, Saudi Arabia had moved heavy military equipment including artillery to areas near its border with Yemen, "raising the risk that the Middle East’s top oil power will be drawn into the worsening Yemeni conflict." In other words, Saudi Arabia was preparing for war. Moments ago all these warnings were borne out when Al-Arabiya reported that the latest middle-east war is now official after Saudi Arabia and Arab Gulf States had launched a bombing campaign against Yemen.
Some folks were propagandizing... Life's #BetterWithObamacare... because what else would you do with your low gas price savings...
If the US intervention in Iraq created the “unintended consequences” of ISIS and al-Qaeda, how is it that more US intervention can solve the problem? A war based on lies cannot be fixed by launching another war. We must just march home. And stay home.
Orwell and Kafka have come to America - a nation that once was a democracy and could once claim to live under rule of law. Wake up and smell the stench of a gilded gulag, America; we're living in one whether you care to admit it or not. Due process and rule of law have been replaced with "legalized" looting by government in America.
Put together our 1% elections, the privatization of our government, the de-legitimization of Congress and the presidency, as well as the empowerment of the national security state and the U.S. military, and add in the demobilization of the American public (in the name of protecting us from terrorism), and you have something like a new ballgame.
“The game is rigged, the network is bugged, the government talks double-speak, the courts are complicit and there’s nothing you can do about it.”
Just a few short days ago we were the first to bring attention to the potential of an Iran nuclear deal being a catalyst for the next big leg lower in the energy complex and sure enough, not only is the market startuing to leg lower in a hurry as the deadline looms, but the mainstream media is catching on too. WTI hit fresh cycle lows this morning at $42.63 with the contango continuing to surge.
Having attacked its "closest ally" UK for "constant accomodation" with China, we suspect President Obama will be greatly displeased at yet another close-ally's decision to partner up with the Chinese-led Asian Infrastructure Investment Bank (AIIB). As The Australian reports, "make no mistake," the decision by Australia's Abbott government to sign on for negotiations to join China’s regional bank, foreshadowed by Tony Abbott at the weekend, "represents a colossal defeat for the Obama administration’s incompetent, distracted, ham-fisted diplomacy in Asia." It seems de-dollarization continues...
There is a possibility of a nuclear deal being agreed between the P5 + 1 nations and Iran next Friday, 20th March. This may be the precursor for energy stocks to recouple to downside and for spending cuts to spread from capex to dividends for majors.
The UK has announced it’s joining the Asian Infrastructure Investment Bank, China’s answer to the Asian Development Bank over which Beijing feels the US has undue influence. US wonders aloud if "constant accommodation" is the best way to engage a "rising power".
It appears that just as the administration is finally figuring out what HFT is, it also decided to take a look at the charts above and has made a decision: the next bailout is about to be unveiled, and it will involve a "streamlined" bankruptcy law allowing students to discharge their student debt.