White House

History takes no prisoners. It shows, with absolute lucidity, that the Islamic extremism ravaging the world today was borne out of the Western foreign policy of yesteryear.

With 53% of Americans opposed to opening the nation’s borders to those fleeing the war-torn Middle Eastern nation, it is perhaps no surprise that The House just voted overwhelmingly to slap stringent - and difficult to implement - new screening procedures on refugees from Syria seeking resettlement. While 47 Democrats defied President Obama's; due to absences, the vote did not quite nullify the threat of veto, without which the bill would  effectively suspend the entry of refugees into the US for months or years.

Moments ago, the in a 241-185 vote, the House passed passed H.R. 3189, aka  Fed Oversight Reform and Modernization Act. The bill would make changes to how the Fed conducts monetary policy and regulatory activities and would direct the Fed to take a rules-based approach to interest rate decisions; require audits of more Fed functions such as monetary policy; and place restrictions on its emergency lending powers. In other words, everything that the banks that are direct and indirect stakeholders in the Fed would fight to the death to prevent.

“Apparently, it’s a kind of a ‘honey is sweet, but the bee stings’ situation: they want IS to weaken Assad as soon as possible to make him leave somehow, but at the same time they don’t want to overly strengthen IS, which may then seize power."

Sure, the stock market had a great October with the Dow Jones Industrial Average jumping by 8.5%, but the disconnect between Wall Street and Main Street is too stark to ignore, and the Federal Reserve is about to pop the easy-money financial bubble.

Bombing wont stop them; it will just make more of them. Ironically, what can stop them is the Assad government and the ground forces of its Hezbollah and the Iranian Republican Guard allies. Its time to let them settle an ancient quarrel that has never been any of America’s business anyway. But Imperial Washington is so caught up in its myths, lies and hegemonic stupidity that it can not see the obvious. And that is why a quarter century after the cold war ended peace still hasn’t been given a chance and the reason that horrific events like last week’s barbarism in Paris still keep happening.

"The Chinese government has the right and the ability to recover the islands and reefs illegally occupied by neighboring countries"...

Walker Texas Ranger has a history lesson for you: The murder sprees in Paris may go down in history like the Nazis’ invasion of Poland on Sept. 1, 1939, as the spark that lit the fuse for a wider European involvement in World War II. The impact of ISIS in Syria and Iraq is comparable to Hitler’s annexation of Czechoslovakia and Austria, which caused great concern and condemnation but not greater European revolt." 

It is important to keep in mind that the dollar’s attacks on gold always end the same way – in a painful knockout for the dollar. There have been no exceptions to this rule throughout monetary history, nor will there be this time. Hence the well-known market rule: “Any maximum of the gold price is not the last one.” It would be naive to believe that this golden rule is unknown to that grandmaster of patience, Vladimir Putin, and to Xi Jinping. By systematically increasing their gold reserves, Russia and China are relentlessly moving forward to strip the US dollar of its status as a global reserve currency. America’s standard military solution won’t work in this situation.

Greenspan’s phony disinflation success led to the Fed’s embrace of fully mobilized and massively intrusive monetary policy in the guise of the Great Moderation and the wealth effects theory of financial asset levitation. In due course, Greenspan’s self-aggrandizing but purely experimental forays of massive central bank intrusion in the financial markets were supplanted by the hard-core Keynesian model of Bernanke and Yellen. Alas, they operated under the grand illusion that a domestic wage and price spiral would tell them when the domestic GDP bathtub was filled to the full employment brim, and therefore when to lift their foot from the monetary accelerator. It never happened, and they never did. The era of Lite Touch monetary policy was by now ancient history.

U.S. stock investors may be complacent regarding the ability of the stock market to withstand higher interest rates. Their confidence may come from the fact that, historically, markets have not peaked until 12-24 months after the Fed begins to tighten. This assumes the tightening cycle begins with the first official rate hike. But if it really began with the increase in the Shadow Rate, then a December rate hike will already be 19 months into the tightening cycle! Plus, given how overvalued stocks may currently be, and the amount of corporate debt accumulated to finance share buybacks, this bull market may be far more vulnerable than most to higher interest rates.

Trump, for all his contradictions, gives voice to the “isolationist” populism that Rubio and his neocon confederates despise, and which is implanted so deeply in the American consciousness. Why us? Why are we paying everybody’s bills? Why are we fighting everybody else’s wars? It’s a bad deal! This is why the neocons hate Trump’s guts even more than they hate Paul.

The world of Bubble Finance economies created by the Fed and other central banks is fundamentally different than that prevailing under the “Lite Touch” monetary policies which preceded the Greenspan era. The problem today is that the PhDs running the Fed have an economic model which is a relic of the Lite Touch era. It is not only utterly irrelevant in today’s casino driven system, but is actually tantamount to a blindfold. It causes them to look at a dashboard full of lagging indicators like jobs and GDP components, while ignoring the explosive leading indicators starring them in the face on CNBC. The clueless inhabitants of the Eccles Building do not recognize that they have created a world in which Wall Street supersedes main street.

In the latest attempt by Washington to prove that the US isn't entirely useless in the fight against terrorism, The Pentagon cliams an MQ-9 reaper drone strike likely killed "Jihadi John," the Kuwaiti-born Brit who became the early face of ISIS after appearing in a series of beheading videos depicting the death of Westerners. 

On the heels of Washington's move to send a guided missile destroyer to The South China Sea to counter Chinese "aggression," the US reportedly flew two B-52 strategic bombers "near" Beijing's man-made islands last weekend. There are competing accounts as to what took place, but this certainly looks like the latest escalation in an increasingly dangerous game of chicken.