Obamacare is Rapidly Becoming the Poster Child for American Inequality

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The best thing about Obama (from an oligarch’s perspective), is his uncanny ability to push through upward redistributive wealth policies while still maintaining a phony aura of caring about the little guy amongst so many of his apparently lobotomized supporters.

Countless examples of his shameless plutocrat-pandering have been covered ad nauseam here on these pages, but what’s most embarrassing for the President’s legacy, is the fact that Obamacare itself is rapidly becoming the poster child for the dramatic wealth and income inequality that has so characterized his entire administration.

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Here Is Why the Oil Market Cannot Dictate the Direction of the Stock Market Anymore

The direction of the crude oil market has been among the top factors that are deciding whether the markets will gain or lose. Here’s proof.

Earlier in the year, the US market was down as fears grew about oil companies going bankrupt due to low oil prices, thereby, hurting banks and the economy at large in the process.

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The chart above backs the point above. And as the chart above shows, it wasn’t until crude oil started a rally that the S&P 500 started recovering, before very positive vibes from the economy out-powered the crude oil market to help the S&P 500 register a new all-time high in July.

There is a new story now. A disconnect between the price of crude oil price movement and the S&P 500 level movement is growing. While the positive vibes that economic data has been sending is a big part of that, there is a new factor: Oil companies as well as banks might have found a way to protect themselves from the oil market turmoil.

Here’s what we know about the signs that banks and oil companies might have found a way to protect themselves. The iShares iBoxx $ High Yid Corp Bond ETF (HYG) is one of the tools that analysts have been using to weigh the health of stakeholders that are in danger of an oil market downfall.

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As oil prices kept falling last year, and hedging contracts expired, the HYG fund started singing to tune of the oil market, as the chart shows. Even when crude oil rallied earlier this year, the HYG also rallied. However, the correlation has also discontinued. And it is easy – and correct – to say that the positive economic vibes is the reason for that as well.

However, it is also because oil market stakeholders have been hedging against the downside. Here’s proof. In early July, Reuters reported that of the 30 largest US shale companies, 17 “increased their hedge in the first quarter of this year.

So in addition to the economic factor that has been causing the disconnect between the stock market and oil prices, the fact that the oil market stakeholders have been locking in sales at around $10 a barrel – well below current levels – has also been highly important.

Of course, it’s difficult to predict the future of oil, as there are many unpredictable variables that would go into such calculations. However, going by the US Energy Information Administration’s forecast of an average Brent price of $44 per barrel in 2016 and $52 in 2017, it is unlikely that oil prices would hit such a low level anytime soon – if ever.

Therefore, investors can expect that the disconnect between the price of crude oil and the stock market will continue for the foreseeable future. The only thing that could put the stock market drive back into the hands of the oil market is a weakening economy. Understanding these trends is just paramount to knowing how to choose the right assets to trade.

 


Our Society Is Sick, Our Economy Exploitive and our Politics Corrupt

In noting that our society is sick, our economy exploitive and our politics corrupt, I’m not saying anything you didn’t already know. Everyone who isn’t being paid to deny the obvious in public (while fuming helplessly about the phony cheerleading in private) knows that our society is a layer-cake of pathologies, our economy little more than institutionalized racketeering and our politics a corrupt auction-house of pay-for-play, influence-peddling, money-grubbing and brazen pandering for votes.

The fantasy promoted by do-gooders and PR hacks alike is that this corrupt system can be reformed with a few minor policy tweaks. If you want a brief but thorough explanation of Why Our Status Quo Failed and Is Beyond Reform, please take a look at my book (link above).

If you want an example of how the status quo has failed and is beyond reform, it’s instructive to examine the pharmaceutical industry, which includes biotech corporations, specialty pharmaceutical firms and the global corporate giants known as Big Pharma.

I hope it won’t come as too great a surprise that the pharmaceutical industry isn’t about cures or helping needy people–it’s about profits. As a Big Pharma CEO reported in a brief moment of truthfulness, We’re in Business of Shareholder Profit, Not Helping the Sick

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Trillionaire Rothschild Warns His Own Central Banking System Is Failing and Buys Gold

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We have been highlighting the wave of billionaires who are all getting out of the stock market this summer and buying gold.  Well, now it’s a trillionaire. Read more ›


Ireland’s Biggest Bank Charging Depositors – Negative Interest Rate Madness

Deposits at Bank of Ireland are soon to face charges in the form of negative interest rates after it emerged on Friday that the bank is set to become the first Irish bank to charge customers for placing their cash on deposit with the bank.

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This radical move was expected as the European Central Bank began charging large corporates and financial institutions 0.4% in March for depositing cash with them overnight.

Bank of Ireland is set to charge large companies for their deposits from October. The bank said it is to charge companies for company deposits worth over €10 million.

The bank was not clear regarding what the new negative interest rate will be but it is believed that a negative interest rate of 0.1 per cent will initially be charged to such deposits by Ireland’s biggest bank.

BOI recently failed the EU stress tests and is seen as one of the most vulnerable banks in the EU – along with Banca Monte dei Paschi di Siena (MPS), AIB and Ulster Bank’s parent RBS. All the banks clients, retail, SME and corporates are unsecured creditors of the bank and exposed to the new bail-in regime.

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Only larger customers will be affected by the charge for now. The bank claims that it has no plans to levy a negative interest rate on either personal or SME customers but negative interest rates seem likely as long as the ECB continues with zero percent and negative interest rates. Indeed, they are already being seen in Germany where retail clients are being charged 0.4% to hold their cash in certain banks such as Raiffeisenbank Gmund am Tegernsee. Read More…


The Marginal Buyer Holds The Pin That Pops Every Asset Bubble

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Economics 101 tells us that prices for all major asset classes are ‘set at the margin’. So things can get ugly fast when the marginal buyer goes on strike.

And it’s increasingly looking like the marginal buyers are beginning to head for the exit — something required for any asset bubble to finally pop…

Click here to read the full article


[KR956] Keiser Report: Why politicians should follow Mozart’s lead?

We ask why politicians don’t take a cue from Mozart and start composing policy for everybody rather than just for the elite. In the second half they continue their conversation with fracking advocate, Nick Grealy of London Local Energy about his belief that natural gas, even of the fracked variety, is a more environmentally friendly source of energy than most others – despite the arguments (he says are false) that fracking pollutes groundwater and causes earthquakes.


Are the Big 4 accountancy firms really the Big 1? Tax Justice Network Podcast

In the August 2016 Tax Justice Network podcast: The Big Four accountancy firms: Are they in fact more like the Big One? And should they be broken up? Also: Read more ›

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Election 2016 – Why Defeating Trump Won’t Make Trump Go Away

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So why am I highlighting this story? First, I think the analysis is correct, and I agree with the presumption that Donald Trump could very well launch a major media organization if he loses the election. There’s no way a man with the disposition and ego of Trump will fade away quietly from the public square. Furthermore, he’s now got tens of millions of supporters who will be looking for someone to give them direction. He’ll be more than happy to fulfill that role.

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US Mint Halts Production of Silver Eagle Coins

The US Mint has reportedly HALTED PRODUCTION of 2016 American Silver Eagle Coins.
Over the past several weeks we have documented the plunge in ASE sales at the US Mint from approximately 1 million coins a week throughout the first 6 months of 2016 to around 150,000 coins a week since mid July.
The lack of Silver Eagle coin demand has reached a point where the US Mint has reportedly just Halted Production entirely on Silver Eagle coins

Click Here For More on the US Mint Halting Production: 

 

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What the Fed Hasn’t Fixed (and Actually Made Worse)

The Federal Reserve claims its monetary interventions saved America from economic ruin in 2009, and have bolstered growth ever since. Don’t hurt yourself patting your own backs, Fed governors past and present: it’s bad enough that the Fed can’t fix the economy’s real problems–its policies actively make them worse.

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Rothchilds Buying Gold On “Greatest” Money “Experiment” In “History The of World”

The Rothschilds are buying gold through their investment house RIT Capital Partners and Lord Jacob Rothchild is warning about the results of “the greatest experiment in monetary policy in the history of the world”.

Reception To Mark The Prince of Wales Medal for Philanthropy 2013

British investment banker Lord Jacob Rothschild is buying gold. Pictured with Joanna Lumley. (Source: Getty)

The Rothchild’s investment house has increased its allocation to gold by 8% and aggressively sold quoted equities and sterling to navigate choppy “uncharted waters” post-Brexit. Sale of shares have been used to buy gold and other non-disclosed precious metals, which, at the end of June accounted for 8 per cent of the £2.8 billion portfolio according to the trust’s half-year results, released on Tuesday. Read More…