Dow’s up a hundred in the futures….While Israel is getting a lot of attention by popping off with some missile firings (at nothing in particular, just testing) in the Med this morning, we’ve seen markets acting totally manic, depending on where the vantage point is.
Israel says today’s lob was a joint test with the US. But other reports indicate the US was not (or did we simply forget we were?) involved.
Has the same kind of set-up and possible lead-in to follow as the Gulf of Tonkin resolution, to it, doesn’t it? Except no one has fired back, but that would make a fine drama for later in the week, something of a sharp stick to prod congress into getting the rubber stamp out…
Fancy Footwork: Meantime, Fearless Leader is not to be questioned, it seems as transparency has taken a vacation for frequent press briefings. We’re also learning a lot about how many din-dins SecState Kerry had with Syria president Assad before he got the Hil job. Fella’s gotta eat, right?
A lot of American’s are wondering how to read president Obama’s weekend statement on Syria. That’s because on the one hand he said he’d already made up his mind to strike, but on the other, he’ll be asking Congress for consent.
How the hell does that work? Does that mean the president would likely order a strike on Syria anyway, even if congress said no? I believe that’s the case, but it’s designed to give the illusion that America is firmly behind kicking off military action against yet another country.
Even the mildly skeptical will remember that Congress isn’t exactly known for its objectivity when a “national priority” is being sold hard by the executive branch. We have only to look at bailouts a couple of year back, and recall that despite phone calls and emails to congress running 200 and 300:1 against bankster bailouts, they happened anyway. Nice to see money and positional power are still intact.
So, in the case of war, my bet is that the same thing will happen here: Congress will be asked, and we’ll strike anyway, or there will be a Tonkin since as I’ve pointed out endlessly, it’s the illusion that counts and perception management.
The sad truth is that the greatest threat to America’s security is compound interest which is stalking us more effectively than al Qaeda or jihadists could ever do. But rather than confess to their crooked ways, the Checkbook Republic Parties are being found out because of a unique characteristic of the global complex systems of modern life.
That principle is simple: A little lie given enough time continues to compound until it becomes a big lie and that we’ve been well-trained to accept. But the compounding of lies never stops and they keep getting bigger and bigger until the absurd lies begin.
For a current example, see the Miracle of the US Debt to the Penny which has been frozen in time how long in order not to reveal our economic reality? Since about May 31st, lol. So we have a Fed lending money to itself, a Public Debt figure that survives through off-books accounting, and now a war in the wings as something’s gotta take the fall but the PTB/bankster class. And if the working stiffs get nailed, oh well, stuff just happens, eh bud?
Still, there was a “rock-em, sock-em” anti-war rally underway in Asia overnight, and you shouldn’t be surprised to see US markets shoot moonward, at least until a) congress demonstrates it can do much of anything and b) the president gives the strike order anyway, since nature abhors a power vacuum and congress wouldn’t know what to do with power if it had it, which it did until it abdicated.
Whew…let me pause till my blood pressure comes down a bit….there, all better. Where were we?
Oh yes…So how much of an anti-war rally is going on this morning?
- Japan’s Nikkei was up 3% overnight.
- China was up 1%
- In the early going in Europe this morning: France, Germany, and the UK were all down a bit earlier.
So how does this work, you’re wondering? Well, in the case of the US and Europe, indecision and a lack of a major war effort is bad for the defense industries. But Asia may be rallying on the underlying reality that if America is not off starting a new war, consumer discretionary income should continue tracking modestly higher and that would be great for the factories of Asia since there’s no economic stimulus on earth like an American with a credit card.
The Weak Ahead
Our shortened workweek means that we’ll be putting five days of economic crap in a four-day sack, so this morning everyone gets to stand around the water cooler before the number crunch begins Wednesday, except for a July construction spending number for July, but that might as well be in archeology books, its so old by now.
Tomorrow, though, we will see the balance of trade figures, which could be good for the dollar since it has been better than expected. Or worse, ultimately it will come down to big ticket Boeing deliveries. The auto sales will come out tomorrow afternoon, along with the Fed’s Beige Book report.
Thursday morning you’ll be seeing the ADP Challenger job numbers in our morning report along with the holy grail productivity report. As this weekend’s Peoplenomics report for subscribers points out in detail, we still don’t seem to be bright enough to tax machines which are quickly stealing the last vestiges of income tax-producing work from humans, but that will come into focus over years and frogs slowly boiled, and all that.
Friday’s the Big One with the unemployment report. I can hardly wait to see how far the labor participation rate moves in this one…
More after this…
So there he goes again…Dennis Rodman is off for round two in Pyongyang. The way he’s doing this is through China because of a hole in US travel rules:
ENTRY / EXIT REQUIREMENTS FOR U.S. CITIZENS: Travel by U.S. citizens to North Korea is not routine, and U.S. citizens crossing into North Korea without proper documentation have been subject to arbitrary arrest and long-term detention (see Travel Warning ). You must have a valid passport and a valid DPRK visa to enter North Korea. The U.S. government does not issue letters to private U.S. citizens who wish to apply for DPRK visas. If you plan to enter and depart North Korea through China, you must obtain a multiple-entry visa for China, because a valid Chinese visa is required to enter China after leaving North Korea at the conclusion of your visit. Routine travel from South Korea to North Korea is prohibited. Travel across the demilitarized zone (DMZ) is allowed only infrequently for official and government-authorized cultural and economic exchanges or aid shipments. Commercial airlines do not operate regular flights between South and North Korea.
So we sit back and wonder if Rodman’s visit (five days in country by the sound of it) will result in a prisoner release. Wouldn’t it be a hoot if non-government folks could get more done than official officialdom? We’ll soon find out if the Young-Un can figure that out.
Speaking of Entry Requirements
Did anyone care to ask the 64-year old Cuba to US swimmer this weekend where her passport was when she swam ashore?
I’m not sure if (as reported over here) “…a tweet from President Obama: “Congratulations to Diana Nyad. Never give up on your dreams.” constitutes inbound clearance, or not. I expect if I had crossed from Cuba to the US (not swimming) that someone would have a problem with it…
Bye-Bye to More Privacy
The report in the NY Times that “Drug Agents use Vast Phone Trove, Eclipsing NSA’s” is a shocker because why? Oh, how about they are adding 4-billion calls per day to their database?
Like to see big acquisitions? How about some of the odd timing that comes along with them? Our Winnipeg news analyst looks at the calendar with new respect this morning:
Dear Mr. Ure,
The blockbuster purchase of Vodafone’s share of Verizon Wireless by Verizon Communications is not only interesting for the shielding from UK tax of Vodafone’s windfall. Anyone wishing to peruse Yahoo Finance may see one of the four banks listed here that is financing the purchase had sold shares in Verizon Communications appearing in a June 30 reporting date.
They must have a time machine, is all I can figure. Or, they’re just….uh….lucky?
Unplug Me Dept.
I have an off-label solution: Grab your honey and take a 5 or 7 day vacation at some all-inclusive like Sandals or Jolly Beach or somewhere…forget the computer….head for the beach… If your idea of “let your fingers do the walking” is texting, then you need to get more sunshine and have hormone levels checked, FCOL
Youngest daughter and b/f are in Hawaii taking the cure this week, their own package, not an inclusive…still, the phone hasn’t rung, only one arrival email….ah, now I can get back to my mid-morning naps.