Demise of the Petrodollar

thecolderwar

By Casey Research Vladimir Putin is stripping America of its superpower status. But he’s not using bombs or tanks to do it. He plans to destroy the one thing that underpins demand for the dollar and Americans’ way of life: the petrodollar system. This was the secret pact Kissinger struck in the vast oil rich deserts of Saudi Arabia. America guaranteed to defend Saudi Arabia and the House of Saud in perpetuity if the Saudis would sell oil in dollars. But many countries resent this system, and their leading spokesman is Putin. There’s a new Colder War going on, and it’s threatening the only thing holding America at the top.   Before Putin makes another move, pick up a copy of The Colder War and learn why the stakes have never been higher and why we’ve never been more vulnerable. Because if the petrodollar dies, so does America as a … Continue reading

The 10th Man: Midterm Elections: Would a Republican Win Be Bullish for the Stock Market?

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The 10th Man: Midterm Elections: Would a Republican Win Be Bullish for the Stock Market? By Jared Dillian I had an instant-messenger conversation with one of my clients the other day. It was pretty annoying—he wrote things like “BULL MARKET, DUDE,” and harangued me about my net-short positioning.Then he started telling me that the market was going to rip if the Republicans took both houses of Congress in the midterm elections. At that point, I felt like I needed to intervene. First of all, just about every single piece of academic research on the subject shows that the stock market (and GDP, and many other metrics) outperforms under Democratic presidents. You don’t need to look very far for a contemporary example, considering that the stock market has done a three-bagger under our current leader, and the economy has recovered. Wait, that doesn’t make any sense. The current administration is the … Continue reading

Bob Moriarty: Flock of Black Swans Points to Imminent Stock Market Crash

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Source: Karen Roche of The Gold Report  (10/29/14) Between a rising U.S. Dollar Index and black swan events around the world, it’s looking like bunker time for Bob Moriarty. In his latest interview with The Gold Report, the 321gold.com founder delivers a frank overview of U.S. international policy and lambasts commentators who look to their tea leaves in search of the next market moves. But it’s not all gloom and doom: Moriarty also discusses metals companies with “no-lose deals,” where resource investors can take advantage of more than favorable odds. The Gold Report: Bob, in our last interview in February, we had currency devaluation in Argentina and Venezuela. We had interest rate hikes in Turkey and South America. We had a cotton and federal bond-buying program. Just eight months later in October, we’ve got Ebola. We’ve got ISIS. We’ve got Russia annexing Crimea. We’ve got a rising U.S. Dollar Index. We’ve … Continue reading

Outside the Box: The Colder War

John Mauldin

Outside the Box: The Colder War By John Mauldin   The story of energy is the story of human expansion. From the days when we roamed the African savanna, we tamed first fire and then other forms of energy, using them as tools to control our environment and improve our lives. The control of energy has always been at the heart of the human story. This week our Outside the Box essay is from my friend Marin Katusa, who has written a fascinating book about a part of that story, a subplot of intrigue and conspiracy. Under Putin, Russia has aspired to dominate the energy markets. Called The Colder War, Marin’s book is a well-written tale of the rise of Putin and his desire to change the way the world’s energy markets are controlled. I sat down a few months ago with an advance copy, not sure what to expect. … Continue reading

Alan Greenspan: Price of Gold Will Rise

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October 29, 2014 by MerkInvestments.com Any doubts about why I own gold as an investment were dispelled last Saturday when I met the maestro himself: former Fed Chair Alan Greenspan. It’s not because Greenspan said he thinks the price of gold will rise – I don’t need his investment advice; it’s that he shed light on how the Fed works in ways no other former Fed Chair has ever dared to articulate. All investors should pay attention to this. Let me explain. The setting: Greenspan participated on a panel at the New Orleans Investment Conference last Saturday. Below I provide a couple of his quotes and expand on what are the potential implications for investors. Greenspan: “The Gold standard is not possible in a welfare state” The U.S. provides more welfare benefits nowadays than a decade ago, or back when a gold standard was in place. Greenspan did not explicitly … Continue reading

Why Putin Has Been Able to Outwit America and Take Over the Global Energy Trade

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Why Putin Has Been Able to Outwit America and Take Over the Global Energy Trade By Casey Research   Vladimir Putin commands the utmost loyalty from those around him, whereas American politics is now characterized solely by infighting and self-destructiveness. It’s this unity of purpose that explains how Putin and his St. Petersburg boys managed to rise to power from humble beginnings and why they’re winning the fight to control global energy trade. Putin is fiercely committed to restoring Russia’s superpower status using its vast energy resources as an economic weapon. Can American possibly compete? Before Putin makes another move, pick up a copy of The Colder War and learn how his plans will directly affect you. You might even catch yourself admiring the man, save for the fact that all this is happening at our expense.   The article Why Putin Has Been Able to Outwit America and Take … Continue reading

TransTech Digest: Why Mitochondria Matter

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TransTech Digest: Why Mitochondria Matter By Patrick Cox I may sound like a broken record saying this again, but it’s critical that we realize that scientific understanding of the biological world is increasing at an exponential rate. For younger readers, I should explain that the term “broken record” is a reference to a common failure of the old pressed-vinyl audio recording technology. Occasionally, the spiraled groove on a record imprinted with physical representations of sound would be scratched or otherwise damaged. As a result, the needle that transferred analog information to the amplifier would be knocked outward from the groove to play the same section of the recording over and over again. For those of you who already knew this, it’s useful to realize that the technology of audio recording that was once universal is not just obsolete, most younger people don’t even know what a skipping record is today. … Continue reading

The Ticking Time Bomb of the Strong US Dollar

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Connecting the Dots: The Ticking Time Bomb of the Strong US Dollar By Tony Sagami Get used to the headlines like the one below. You’re going to hear hundreds of US multinational companies blame their profit shortfalls on the strong dollar. Revenue Miss #1: Lockheed Martin rose sharply after reporting better-than-expected quarterly profits. However, their $11.11 billion of sales for the quarter missed the $11.28 billion forecast and was a 2% year-over-year decline from Q3 2013. Revenue Miss #2: eBay earned one penny more than expected, but its revenues of $4.35 billion missed expectations for $4.37 billion. Revenue Miss #3: SanDisk reported better-than-expected profits, but its revenue of $1.75 billion was a little short of the $1.76 billion forecast. More importantly, SanDisk told Wall Street to lower its Q4 revenue expectation to between $1.8 billion to $1.85 billion, below estimates of $1.88 billion. Revenue Miss #4: IBM, which I lambasted … Continue reading

CEO Went Against the Petrodollar and Dies a Mysterious Death

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CEO Went Against the Petrodollar and Dies a Mysterious Death. Who Holds a Monopoly on the Truth? By Marin Katusa, Chief Energy Investment Strategist Last month in these pages, I wrote: Patrick de la Chevardière, CFO of Total SA (which is France’s largest energy company), has publicly announced that Total is looking to finance its share in the $27-billion Yamal LNG project using euros, yuan, Russian rubles, and any other currency but US dollars. “The effect of US sanctions was that Yamal LNG will be prevented from raising any dollar financings,” Patrick de la Chevardière stated in London at a news briefing. Patrick de la Chevardière’s boss was Total SA CEO Christophe de Margerie. De Margerie is now dead: he died under mysterious conditions last week, when just after midnight a snowplow and his private jet collided at a Moscow airport. Back in university (yes, over 18 years ago now), … Continue reading

Peak Gold Is Here to Stay

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Oliver Gross Says Peak Gold Is Here to Stay  Source: Kevin Michael Grace of The Gold Report  (10/27/14) The wave of zero-interest liquidity washing over the financial world could result in a short-term gold bottom of $1,000 per ounce, reports Oliver Gross of Der Rohstoff-Anleger (The Resource Investor). The good news is that Peak Gold is here to stay, which means that midtier producers will soon be desperate to buy low-cost, high-quality deposits. In this interview with The Gold Report, Gross argues that this could be the opportunity of a lifetime for contrarian investors, and suggests a half-dozen best bets to be taken out. The Gold Report: Earlier this month, the broader equities markets suffered huge losses as gold made significant gains. Then, after the broader markets recovered, gold fell. Is there now an inverse relationship between the health of the broader markets and the price of gold? Oliver Gross: This … Continue reading