Reuters

Obama Sends More Troops To Iraq; Authorizes Use Of Apache Helicopters; Gives $415 Million To Local Army

Back in 2014 Obama promised that as part of the US war against ISIS, there would be "no ground troops in Iraq." Moments ago U.S. Defense Secretary Ash Carter gave the latest confirmation that Obama was not being exactly "honest", when during a visit to Baghdad in which he met U.S. commanders, Iraqi Prime Minister Haider al-Abadi, and Iraqi Defence Minister Khaled al-Obeidi, he announced that the US would send another 200 additional troops, raising the number of U.S. troops in Iraq to about 4,100.

Argentina's First Bond Issuance In 15 Years Is Already Nearly 3x Oversubscribed

Almost exactly two years ago, in April 2014, Greece issued €2.5 billion in 5 year bond yielding around 5%, which was met with huge investor interest and ended up being 8x oversubscribed. Fast forward to today when another former shutout from global bond markets, Argentina, is in the FT's words, "on the cusp of one of the most anticipated comebacks in recent history, as the Latin American country ends a 15-year exile from the international debt market with a multibillion-dollar sale." This issue is likewise oversubscribed, and according to Reuters there are already $40 billion in roders for the $15 billion offering.

Frontrunning: April 18

  • Crude's Losses Drag Ruble, Loonie Lower; Stocks Pare Their Drop (BBG)
  • Grand Oil Bargain Is Victim of Saudi Arabia's Iran Fixation (BBG)
  • Both Parties’ Presidential Front-Runners Increasingly Unpopular (WSJ)
  • It's up to you, New York: state takes center stage in election campaign (Reuters)
  • Rousseff Hangs by a Thread After Losing Impeachment Vote (BBG)
  • China March home prices rise at fastest rate in two years, top cities boom (Reuters)
Gold Money's picture

Fiat Money Fairytales

Frequently one can tell by the title of an opinion piece whether it is going to consist of quality arguments or just meretricious mudslinging. Professor Charles Postel of San Francisco State University boldly announces the latter in choosing to title his recent tirade against sound money, "Why Conservatives Spin Fairytales About the Gold Standard". As this article is so typical of what we seek to rebut, we publish it here, and now.

Goldman On Doha: "Bearish For Prices ", Expect "High Price Volatility"; Saudi Oil Production May Jump

"we view this outcome as bearish for oil prices given consensus expectations for a “soft guidance” freeze at January production levels"... "We therefore view risks to our Saudi forecast as skewed to the upside: it is at the guidance provided by the deputy crown prince in his latest interview with Bloomberg this week, with such volumes presented as contingent on a deal to freeze production being reached."

Japan's Economy Grinds To A Halt After Earthquake Paralyzes Critical Supply Chains

On Sunday Toyota was one of many Japanese companies to announce that it will suspend most car production across Japan as a result of critical supply chain disruption caused by the recent destructive earthquake and numerous aftershocks. The earthquakes reflected the vulnerability of Japanese companies to supply chain disruptions caused by natural disasters, and also highlighted the "just in time" philosophy pioneered by Toyota and followed by many others.

"I Am Not Sure You Can Call It A Freeze" - OPEC Deal In Jeopardy As Saudi-Iran Tensions Spike: All The Latest

A spike in tensions between arch-rivals Saudi Arabia and Iran appeared on Sunday to ruin prospects of the first binding oil output deal in 15 years between OPEC and non-OPEC nations, and looked set to prompt another fall in the price of crude.  "I am not sure you can call it a freeze," one OPEC source said. A senior oil industry source said: "The problem now is to come up with something that excludes Iran, makes the Saudis happy and doesn't upset Russia."

Pushed Too Far - The Inveitable Costs Of The "Perpetual Money Machine"

It must be tempting for the believers to again revel in the brute power of the “perpetual money machine.” Yet the costs associated with the latest round of monetary inflation are steep. Not many months ago it appeared that China was determined to rein in excess, while the U.S. was ready to lead the world toward policy normalization. Today it’s become rather obvious that China is out of control and global policymakers are trapped at near zero or negative rates and perpetual QE monetary inflation. What was always sold as temporary extraordinary measures is increasingly recognized as desperate “whatever it takes” indefinitely.

And Scene: In Last Minute Iran Pulls Out Of Doha Meeting

The "OPEC production freeze" farce was fully exposed this morning when after pretending whether or not to participate in the Qatar meeting, Iran finally decided it will not attend the Doha meeting, two sources familiar with the situation told Reuters. Iran's oil minister had not been scheduled to attend, but Tehran was due to send Iran OPEC Governor Hossein ‎Kazempour Ardebilli, oil ministry news agency Shana reported on Friday. Iran had been informed that only those countries willing to agree to freeze their output level should attend.

Live Feed From Japan Which Wakes Up To Destructive Earthquake Aftermath

The massive magnitude 7.3 earthquake that struck Japan this afternoon, the strongest since the devastating quake of 2011, took place at night local time, and as such there was little available media coverage. As Japan wakes up, much of the destruction becomes apparent.

Weekend Reading: Sagacious Discombobulation

So what do you do? Play the short-term chase the market game or the longer-term wealth devastation game. The choice is yours to make, the consequences will be for all to share. “I will tell you my secret: I never buy at the bottom and I always sell too soon.” – Baron Nathan Rothschild