Blog Archives

Cuba & Brent Crude

Stacy Summary: A jibber jabber thread for your thoughts on the US shocking with restoration of ‘full diplomatic relations with Cuba?’ The embargo (except on cigars which are now allowed) and tourist ban is still on, but it’s a remarkable beginning of a new era and I should think this has lots to do with it:


Then there is Brent Crude . . . up 5.37% today!? What?

Dubai stock exchange tumbles 33% in past month

Stacy Summary: I know it’s unfashionable to discuss; and that all the tweeting hipsters look and talk the same (i.e. rouble) but in the meantime, carnage continues elsewhere in the world . . . .


[KR693] Keiser Report: Oil can combust & blow it all

We discuss the blood-bathing in the oil related markets – from the Dubai stock exchange to the West Australian fracking company gone bust to some of the highest paid jobs in America being laid off. In the second half Max interviews former banker turned independent media star, Brian Rose of London Real TV and Silicon Real. They discuss whether or not London can ever be a new Silicon Valley.

#ROUBLE

Stacy Summary: Despite what mainstream bloggers are tweeting (they claim RT is not talking about the rouble), almost every other video posted by RT today is actually about the rouble (check out their YouTube page and their Twitter feed for more updates). But, whatever. Patriots will shriek. In meantime, some rouble content for you below. As we said in a recent episode of Keiser Report, currency crises happen during balance of payments crises (i.e. Russia 1998) or periods of deglobalization (i.e. 1914-1945). As Russia does NOT have a balance of payments crisis and has only $4 billion of external debt rolling over in the next 12 months (so no imminent sovereign debt crisis), this, imo, must be part of the deglobalization meets the new paradigm of algorithmic trading (the Norwegian krone was selling off heavily and dropped below parity with the Swedish krona for first time since 1992). The other thing to note is that when we discussed the crashing rouble a few episodes ago, we mentioned that the Baltic Dry Index was down 57% ytd, it is now down 63% . . . global trade is at a standstill but this time not due to ‘credit crunch’ (recall that shippers were unable to get Letters of Credit in 2008 when the BDI collapsed by 80+%) but sanctions / deglobalization (or ‘regionalisation’ as Constantin Gurdgiev calls it).


And this is how bad the tumble is today:


Unlike 1998, however, today there is no balance of payments crisis, nor chance of imminent sovereign default (as per above, though non-financial corporates may likely default on some of their debts). Recall my story of trade deal with a Russian company during 1998 rouble crisis; we had a deal for $80,000 USD. We ended up receiving I believe about $30,000. We lost on this end; i.e. the film distributor defaulted on part of their debt to us. We took the hit.

To put the rouble into currency context; about $85 billion / day in rouble is traded in a global forex market of $5.3 trillion per day. So it’s a tiny portion of the whole forex game – like silver in the precious metals market. Most forex trade is USD, EUR and YEN. Then Swiss Franc, GBP and CAD.

Some believe capital controls will be the next step:


Iceland did the same and, in fact, still have controls in place, but they are a tiny $13 billion economy compared to Russia’s $2 trillion economy. Many shriek with giggles and laughter, but deglobalization benefits nobody. Remember 1914-1945?

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Central Bank of Russia raises rates by 6.5%

Stacy Summary: Holy moly! Rate rises are better than throwing away your foreign exchange reserves; wonder if it will force the currency speculators away?


At the same time, part of the same story in the High Yield Energy Sector:


Subscription QE as Anal Feeding

Stacy Summary: Well, by now you will all have heard of the CIA Torture Report and the anal feeding as part of that rape/torture. We liken QE to a similar ...

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[KR692] Keiser Report: Debt Meteor Approaching Earth

We believe that ‘something’s gotta give’ as the real world continues to tumble while equity markets continue rising – and not everyone is ‘lovin’ it.’ We also compare the debt curse to the oil curse. In the second half, Max interviews equity crowdfunding pioneer, Simon Dixon of BankToTheFuture.com, about the latest in CrowdFunding 2.0 as both the political and financial space is disinter mediated.

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Fracker down

Stacy Summary: As we’ve warned repeatedly, frackers were losing money at $100/barrel, they’re going bust at $60/barrel.

Oil price collapse claims WA’s Red Fork Energy, shale gas company in receivership

shale-bankrupt

The collapse of the oil price has snared its first West Australian victim with Red Fork Energy losing the support of its major lender.

The Perth-based company drills for shale gas in the United States, producing oil and gas.

But, it is completely exposed to the US shale gas industry, which analysts say has become unviable at current oil prices.

But Bank of America said shale fracking was profitable at even $40!?

Look how isolated Russia is . . .



[KR691] Keiser Report: Real Reasons behind UK Porn Law

We look at the ‘death eaters’ and ‘deglobalizers’ longing for suffering by ordinary people, especially if the ruling elite can’t be the guaranteed winners. They look at currency crises due to balance of payments and deglobalization and those cheering it on. In the second half Max interviews Itziar Bilbao Urrutia – aka Ms Tytania – about the new ban on certain female acts in porn and the real reason behind the ban being censorship and fear of another Wikileaks or Snowden. Max also suggests if Westminster wants to help children, they should stop harming them first.

Subscription War Propaganda and Autumn Budgets

Stacy summary: Chatting about war propaganda, Ron Paul, autumn budgets and all sorts of sordid affairs of the state. No, not the #TortureReport. We may discuss tomorrow, but I’m not ...

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“Vladimir Poutine, come help us!”

Stacy Summary: h/t Vonda Bra. The photo below is from anti-government protests in Haiti today. In light of McCain and Nuland answering the call of protesters in the Maidan, perhaps Putin should go hang out with the protesters in Haiti? Methinks that would be as frowned upon in the US as the former was frowned upon in Moscow. Nevertheless, interesting to see this in light of fact that Haiti is protectorate of US with all its ‘free trade zones’ and ousted and un-ousted presidents, etc. one would think they love the US and would invite Obama to come help them?

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Haiti capital hit by anti-government clashes

The protesters want President Michel Martelly and Prime Minister Laurent Lamothe to resign and long-overdue elections to be held.

Some protesters accused the US of supporting Haiti’s leadership and called on Russian President Vladimir Putin for help.

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