Dec 162014
 

20141215_RUB1m_0

Zero Hedge: “Following the biggest rout to the Ruble in ages, Russia – unlike Mario Draghi – instead of talking the talk decided to walk the bazooka walk and shocked all those long the USDRUB by unleashing an emergency rate hike (at 1 am in the morning) from the recently raised interest rate of 10.50% to… hold on to your hats… 17.00%, a 650 bps increase!

Opinion: This surprise announcement from Russia comes after the ruble got absolutely crushed on Monday, losing more than 10% of its value against the US dollar, as the ruble fell to below 64 against the dollar on Monday; earlier this year, one dollar bought about 35 rubles.

According to Bloomberg, “Russia derives about 50 percent of its budget revenue from oil and natural gas taxes. As much as a quarter of gross domestic product is linked to the energy industry, Moody’s Investors Service estimated in a Dec. 9 report.  The economy may shrink 4.5 percent to 4.7 percent next year, the most since 2009, if oil averages $60 a barrel under a “stress scenario,” the central bank said yesterday.”

Oil closed at $55.72 last night.

High interest rates in the US under the Carter administration reached 20% in March 1980 leading to a sharp recession with output in the auto and housing sectors falling by over 20%.

With Czar Putin’s 80% approval rating at home in jeopardy, the odds of a black swan event,  a metaphor that describes an event that comes as a surprise, grows daily.

 

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Dec 132014
 

CNS News: “The federal debt has increased by $3.8 trillion in the 3.8 years that have passed since House Speaker John Boehner cut his first spending deal with Senate Democrats and President Obama.

That works out to $32,938.38 for every household in the United States—including those taking federal welfare benefits—and $42,783.20 for every full-time year-round private-sector worker in the United States.”

Opinion:  What is becoming obvious is that big government progressives come in all flavors. How foolish to believe that anything would change.

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Let the good times roll, like the bill will never come due.

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Dec 122014
 

The Washington Examiner: “The House on Thursday passed a $1.1 trillion package to fund the government, despite significant opposition from lawmakers in both parties that nearly derailed the measure.

The vote was 219 to 206 and came hours before a midnight deadline. It now moves to the Senate for consideration. The House also voted to pass a two-day extension of funding to give the Senate time to debate and vote on the larger package.

The bill passed after House Democrats met privately for several hours to mull their opposition to the legislation, which stemmed mostly from a provision to roll back a Wall Street reform measure passed in the wake of the 2008 financial crisis.”

Opinion: Snatching defeat from the jaws of victory, Republicans approved  a spending bill for 2015 that gives President Obama almost everything he wants, while disenfranchising the very voters who delivered the GOP victory.

Proving once again that there is little difference in the parties, the bill does not block Obama’s recent executive order to allow five million illegal immigrants to obtain work permits.

Speaker John Boehner had said he would guarantee  members a minimum of 72 hours to read legislation. Instead, following former House Speaker Nancy Pelosi’s innovative “pass the bill so that you can find out what’s in it” policy, there was only a tiny window of no more than 52 hours to read, analyze and vote on a $1.1 trillion dollar spending bill that is 1,603 pages long.

For reference, the Bible (NKJV) is only 1,200 pages.”

cromnibus

 

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Dec 082014
 
Total Derivatives Decline By 3% In Q2 To Only $691 Trillion

Hedge: “Who says macroprudential regulation doesn’t work: according to the BIS, notional amounts of outstanding OTC derivatives contracts fell by 3% to “only” $691 trillion at end-June 2014. This is also roughly equal to the total derivative notional outstanding just before the Lehman collapse, when global central banks volunteered taxpayers to pump a few trillion

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Dec 042014
 
Will Russia's Putin Be Defeated By U.S. Fracking?

Investors Business Daily Op-Ed: “Politics Of Energy: As U.S. oil and gas output soars, the ruble crashes and Russia’s oil-based economy stands at the precipice of a recession. Are American frackers doing to bully Vladimir Putin what President Obama can’t? On Tuesday came a stark warning from Russia’s Economics Ministry: The nation appears headed into

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Dec 032014
 
Vatican 'US Messenger' Praises Obama Exec Amnesty

Breitbart: “On Sunday, the Chicago Archbishop who has been described as “Pope Francis’s American messenger” praised President Barack Obama’s executive amnesty and expressed concerns about the privacy of illegal immigrants who will be coming out of the shadows. Archbishop Blase Cupich, who was recently chosen by Pope Francis to lead the Catholic Church in Chicago,

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Dec 032014
 
5 Complete Lies About America's New $18 Trillion Debt Level

Zero Hedge: “On October 22, 1981, the government of the United States of America accumulated an astounding $1 TRILLION in debt. At that point, it had taken the country 74,984 days (more than 205 years) to accumulate its first trillion in debt. It would take less than five years to accumulate its second trillion. And

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