Forget “50” – Focus on Iran and NK

imageI’m sure someone will notice that Denver won the Super Bowl on Sunday, proclaim that it’s a bearish signal and may in and of itself account for the market getting creamed today.

Nothing could be further from the Truth, however.

As we put pixels to photons (or whatever), a few very uncomfortable facts have to be held. in mind.

1.  Amidst all the HS&J (hype, shuck, and jive) around sports this weekend, most people failed to notice that Iran is on the verge of abandoning the U.S. Dollar (USD) as the basis for settling their oil business.

To make this a kind of triple slap in the face, it tells us a couple of additional things, as well.  One is that while many in the West think that the EU will collapse into the Second Depression ahead of the U.S. Iran by virtue of the militant brand of religion-marketing, may have grand designs on eventually subsuming Europe which is already well on its way to becoming Eurabia.

Here’s the count:  To think the Euro is better than the Yen, Rubble, or Dollar?  That’s one.  Two, to have an invading force already hard at work changing loyalties in the EU is number two.  And number three?  We just pissed away $150-billion and the Obama administration appeals distinctly like a troop of idiots, even with what’s her name trying to run for office.

2.  Second point is this:  As we have been explaining, China is trying to build a Middle Class.  And they are working on warrior values and chivalry (see Coping section).  And North Korea is their lap dog.

The launch of the North Korean long-range rocket this weekend is being widely condemned, but guess what?  They did it.

In response, the U.S. is doing lots of wagging about getting out your checkbook in order to tell Japan and (South) Korea that “We got your back…”

The problem with Secretaries of State is they seem to be terminally disconnected from a reality which we refer to now and then around here as economics.

Japan is kicking our ass on the international balance of trade numbers and so is South Korea.  So hate to say it, but Kerry should get the hell of his bicycle and get over to Census and read a bit.

In 2015, Japan, for example, exports a bit more than $131 billion worth of stuff (Lexi and such) to the USA.  WE on t’other hand, exported less than $63-billion to them.

Now I don’t claim to be a rocket surgeon, or anything, but to me it looks like if Kerry is hinting at “installing” an anti missile system on the US Gov’s military’s dime (which comes right out of your pocket) he should get a lot more serious in his negotiating skills.  In a word, Trump is right on this point.

Then we have the case of South Korea:  We imported almost $70 billion while they bought how much from us, do you suppose?  $44.5 billion.

Now, look.  All fine to run around the world all macho’ed up and bike riding…got no problem with that.  but when we have almost $100-billion of outright freeloading going on, seems to me that Kerry et al, including Denis Rodman’s boss, out to learn how to read a freaking balance sheet and get their poop back in order.

I don’t know how you feel about it (go ahead, leave a commend) but the points are pretty damn simple here.

A.  IRAN took our money and turned around and is going to pistol whip us with it.

B: North KOREA just launch a space-capable rocket.  They will use it to put one or two nukes into orbit crossing the USA.  And then they will have us by the orbital nuts.

Sure, there’s a bit of “global outrage” but you don’t seriously think they give a rip, do you?  If they did, would they be challenging South Korean navy patrols?  (The quick answer is no but if you need some extra time this morning, it’s OK and we understand…)

I can hear the classified Rodman-Obama last-day in office discussion.

O:  Well Denis?

R:  Yes, the NK’s now have an orbiting push-button EMP system in place that they codename “Nightfall.”  And, as you have planned, this will now be an infinitely modulated next demon for us to spend money we don’t really need to, on.

O:  (sounding like Monte Burns rubbing his hands)  Excellent!

Henceforth, between us here, the code-name Nightfall will be used to apply to EMP weapons which the U.S. government had copped to building for drone-sized delivery.  NK would naturally want to counter such a threat by getting a system going and put it in space.  The kind of thing that could be activated by a cell phone call from anywhere in the world and making it virtually impossible to protect against…  (None of this is classified, by the way.)

If you want to blame the decline on Denver winning, great.  Momma Manning has to be pleased with the boys, I’m sure. 

But the market is a little more pragmatic and someone besides Ure’s truly may see the games that Iran and North Kimchee are playing.

When I looked, the futures were down 230- on the Dow.  And there’s a little more than  a side bet in the office pool going on here.

Back to Alka-Seltzer and reality, huh?

By the Way

For our lone reader who still insists on the Super Bowl driving markets, do you think it’s possible that the fact that all of Europe is down between 2 and 3% has something to do with it?

We notice that 2% off the Friday closing Dow would be a decline of 324 points today while a 3% decline would be a 486-point slider.

And since we have the technical problem described in our Saturday report for subscribers, I’m guessing somewhere in the middle of that would be a reasonable toss at the dart board today.

Trouble Ahead

Janet will be Yellen later in the week, as markets continue to engage in running the Fed instead of the other way around.

You will recall that the Fed supposedly raised rates in December.  At that time, the 10-year Note was running 2.25%.

Fast forward to last Friday, and the 10-year was down in the vicinity of 1.85%.  What does that tell you about the sincerity of the Fed “hike?”

Wednesday, Janet will be at the House and then Thursday at the Senate.  Not that anything she says to the House or Senate Bumbling Committees will make sense, mind you.  The big deal is can she swing the market from it’s current free-fall…that’s the part to watch.

That and retail sales Friday…

Bill Clinton Running

Well, not actually, but he sure sounds like it in the Time article Bill Clinton Revs Up Attacks Against Bernie Sanders.

Truth Leak

That’s what we’d have to call the CNN  headline: Syrian refugees: We did not flee for tents.

No, they fled to take over Europe and America and get a piece of the big pie, of course.  And without paying…which is your job.

Meantime, we continue to be astounded by the political ineptitude and lack of actual leadership as once again Angela  Merkel is back in Turkey as Syria push triggers more refugees

ABC is reporting 7 people have been arrested in a supposed ISIS terror plot.

The “I Wish I’d Thought of It…” Department

Ziff Davis has a killer story here:  Want the full MS-DOS virus experience? Time for a night at the Malware Museum

OK, so much for Monday…much to do so more tomorrow.

18 thoughts on “Forget “50” – Focus on Iran and NK”

  1. You do know that Iran got their own money, not ours, right? It was their money, which we seized and held. Please let Donald Trump know this, since we aren’t thieves.

    • sorry but that comment is so wrong I can’t believe any of these readers would come up with a dumb statement like “we are not thieves” ! No we are a lot worse than that read the previous comment and pay attention to that!

  2. I am a bit dumfounded that the Numero Uno first point of lifting sanctions would be that Iran use dollars. But then, that assumes that the negotiations were actually done by Americans and not Royal / Rothschild agents like Obama and Kerry. Which gets me back to the idea that America is being taken down. And they did not close 5 Walmarts in the South for bogus plumbing excuses for nothing, and pretty much all the recently announced Walmart closings were well below the Mason Dixie line. Things will be happening, and we do not have a long time to wait.

  3. Are you sure about that h?

    George you’re sounding like Trump when you point out the truth with balance of trade and the U.S. defense commitments. No problem a little truth is nice, esp. in politics

    • Which I assume will be the death drop to trhe 1,740 last line in the sand or we are in Depression 2 right now?

      • These dates are too close to home for me. My mom passed on 2/12/12 at about 12:22pm. My father in law a year later on 2/12/13 at roughly the same lunch-time hour.

      • To be honest George, I dont know, i didnt realise that it was on my digital calander until this morrning. Sometimes when im sleeping i well, sleep walk and my my subconscious leaves me messages. What i found out is. “Form U5 is the Uniform Termination Notice for Securities Industry Registration. Broker-dealers, investment advisers, or issuers of securities must use this form to terminate the registration of an individual in the appropriate jurisdictions and/or self- regulatory organizations (“SROs”).”

      • There is a noticable echo lately.

        I am at the fork again in life. There is no good or bad nor right or wrong decissions. Only healthy and unhealthy choices.

        To exchange this life for another. There in of itself is the choice.

        I made myself weakness, so Gods strength would be all in me. I took the placement of 0, so that infinity would dwell in my house.

        After this period of movement/moments the cycle has been completed. Full circle. Today i choose a different path. It doesnt matter if they remember me or not. I wasnt here for me. I was here for God and now points me a different direction, a good life, a rich life filled with love. I have turned my back on everything even my own hoped and desires to serve God. I have given up my life and everything in it and became weakness. Fathers, mothers, brothers sisters, childeren, all my life and energy…

        And now, i return to that life.

        On the other side then George, when they open the books and settle the accounts..

  4. This administration and their inability to put US first and not their ideology, is embarrassing. We have gone from a super power, to a super powder. Our “leadership” has no substance, backbone or forethought. Their motivation seems to be to enforce an academic thought, or put a notch in their liberal/progressive belt. Almost like they have a checkoff sheet on things they feel are needed because of their persuasion. They continue to reinforce that the US shouldn’t lead, shouldn’t be a superpower, that we are undeserving and that we owe all the other countries, because of our former position in the world. Their ideology, which they are enforcing in the US, where they feel certain groups are owed and they need to have “Social Justice”. They are now doing the same things on a global scale where the US has to acquiesce to others, including the terrorist running Iran, to promote their global social justice. The US get’s it in the shorts, but that’s the price we need to pay; because this administration feels we owe it to the world. We have been the cause of most of the problems in the world so now we need to pay for our meddling, occupation and outright colonialism. This butch of socialist/anti-american regime can’t get out of office soon enough! That is if we don’t have a national emergency that requires them to call for a state of emergency; calling off the elections until they can resolve the EMP or whatever has happened to invoke……but I digress.

    • For Wayne Irish; Your comment here today gets right to the point as to what this administration and it’s supporters are forcing on the country and its hard working citizens.

      These individuals and groups both within and outside the country who are denigrating and yes destroying this country are taking away our children’s opportunity to make a good life for themselves.

      Your last sentence should be seen as a warning.

      Someone famous once said:
      “When I was a kid, this was a strong free country”

      You may disagree and you would be wrong, wrong, wrong!

      W.I., I hope to see more of you comments here in the future. Thank you


  5. Russia bought the oil trading desk that sets oil prices from Lehman Bros. a few years back and will be soon be setting an oil price in rubles. They are already trading oil with China in yuan. With Iran joining the club and Venezuela and some of the Emirates ready to get rid of the toxic dollar the handwriting is already on the wall.

  6. Someone else noted the money given back was their money – impounded by us. I have read that the sanctions were really all about Iran not selling their oil in dollars… who knows. Also have read that Libya was hit because they were planning to create a new currency backed by gold, to trade their oil. So maybe our mid east incursions as based on our desire to maintain the petro dollar forever.

    • Want to know about Iraq under Saddam?
      I met a guy in Australia in the course of business who was/is an Iraqi Mechanical Engineer from Baghdad.
      Mid 50s bloke who came to AUS in the mid 90s after the US blew the city to hell and back.
      Interestingly he told me life was good under Saddam. Career, security, medical. He was upper middle class of course. Only requirement was you kept your big nose out of politics otherwise it could be chopped off.
      Small price to pay for our Arab friends for peace and prosperity one would think. After you Yanks arrived even the toilets didn’t work.
      Good work boys. Now the place is f** and a breeding ground for USA haters amongst every other white country. Long term thinking there. Hard to believe you are the same fellas that took humanity to the moon in 69.

  7. Eurabia would be a good name, except that it isn’t Arabs that are unvading Europe. As far as I know, we don’t have a Suadi Arabian exodus going on. All Muslims are not Arabian, are they?

    • A goodly share are Persian Persrope didn’t write well, and neither did Eursian…so I took the easy road out./..

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