Best of the Week
Most Popular
1. The Trump Stock Market Trap May Be Triggered - Barry_M_Ferguson
2.Why are Central Banks Buying Gold and Dumping Dollars? - Richard_Mills
3.US China War - Thucydides Trap and gold - Richard_Mills
4.Gold Price Trend Forcast to End September 2019 - Nadeem_Walayat
5.Money Saving Kids Gardening Growing Giant Sunflowers Summer Fun - Anika_Walayat
6.US Dollar Breakdown Begins, Gold Price to Bolt Higher - Jim_Willie_CB
7.INTEL (INTC) Stock Investing to Profit From AI Machine Learning Boom - Nadeem_Walayat
8.Will Google AI Kill Us? Man vs Machine Intelligence - N_Walayat
9.US Prepares for Currency War with China - Richard_Mills
10.Gold Price Epochal Breakout Will Not Be Negated by a Correction - Clive Maund
Last 7 days
The Central Bank Time Machine - 23rd Aug 19
Stock Market August Breakdown Prediction and Analysis - 23rd Aug 19
U.S. To “Drown The World” In Oil - 23rd Aug 19
Modern Monetary Theory Could Destroy America - 23rd Aug 19
Seven Key Words That Explain "Stupidly High" Bond Market Prices - 23rd Aug 19
Is the Fed Too Late Prevent A US Housing Bear Market? - 23rd Aug 19
Manchester Airport FREE Drop Off Area Service at JetParks 1 - Video - 23rd Aug 19
Gold Price Trend Validation - 22nd Aug 19
Economist Lays Out the Next Step to Wonderland for the Fed - 22nd Aug 19
GCSE Exam Results Day Shock! How to Get 9 A*'s Grade 9's in England and Maths - 22nd Aug 19
KEY WEEK FOR US MARKETS, GOLD, AND OIL - Audio Analysis - 22nd Aug 19
USD/JPY, USD/CHF, GBP/USD Currency Pairs to Watch Prior to FOMC Minutes and Jackson Hole - 22nd Aug 19
Fed Too Late To Prevent US Real Estate Market Crash? - 22nd Aug 19
Retail Sector Isn’t Dead. It’s Growing and Pays 6%+ Dividends - 22nd Aug 19
FREE Access EWI's Financial Market Forecasting Service - 22nd Aug 19
Benefits of Acrobits Softphone - 22nd Aug 19
How to Protect Your Site from Bots & Spam? - 21st Aug 19
Fed Too Late To Prevent A US Housing Market Crash? - 21st Aug 19
Gold and the Cracks in the U.S., Japan and Germany’s Economic Data - 21st Aug 19
The Gold Rush of 2019 - 21st Aug 19
How to Play Interest Rates in US Real Estate - 21st Aug 19
Stocks Likely to Breakout Instead of Gold - 21st Aug 19
Top 6 Tips to Attract Followers On SoundCloud - 21st Aug 19
WAYS TO SECURE YOUR FINANCIAL FUTURE - 21st Aug 19
Holiday Nightmares - Your Caravan is Missing! - 21st Aug 19
UK House Building and House Prices Trend Forecast - 20th Aug 19
The Next Stock Market Breakdown And The Setup - 20th Aug 19
5 Ways to Save by Using a Mortgage Broker - 20th Aug 19
Is This Time Different? Predictive Power of the Yield Curve and Gold - 19th Aug 19
New Dawn for the iGaming Industry in the United States - 19th Aug 19
Gold Set to Correct but Internals Remain Bullish - 19th Aug 19
Stock Market Correction Continues - 19th Aug 19
The Number One Gold Stock Of 2019 - 19th Aug 19
The State of the Financial Union - 18th Aug 19
The Nuts and Bolts: Yield Inversion Says Recession is Coming But it May take 24 months - 18th Aug 19
Markets August 19 Turn Date is Tomorrow – Are You Ready? - 18th Aug 19
JOHNSON AND JOHNSON - JNJ for Life Extension Pharma Stocks Investing - 17th Aug 19
Negative Bond Market Yields Tell A Story Of Shifting Economic Stock Market Leadership - 17th Aug 19
Is Stock Market About to Crash? Three Charts That Suggest It’s Possible - 17th Aug 19
It’s Time For Colombia To Dump The Peso - 17th Aug 19
Gold & Silver Stand Strong amid Stock Volatility & Falling Rates - 16th Aug 19
Gold Mining Stocks Q2’19 Fundamentals - 16th Aug 19
Silver, Transports, and Dow Jones Index At Targets – What Direct Next? - 16th Aug 19
When the US Bond Market Bubble Blows Up! - 16th Aug 19
Dark days are closing in on Apple - 16th Aug 19
Precious Metals Gone Wild! Reaching Initial Targets – Now What’s Next - 16th Aug 19
US Government Is Beholden To The Fed; And Vice-Versa - 15th Aug 19
GBP vs USD Forex Pair Swings Into Focus Amid Brexit Chaos - 15th Aug 19
US Negative Interest Rates Go Mainstream - With Some Glaring Omissions - 15th Aug 19
GOLD BULL RUN TREND ANALYSIS - 15th Aug 19
US Stock Market Could Fall 12% to 25% - 15th Aug 19
A Level Exam Results School Live Reaction Shock 2019! - 15th Aug 19
It's Time to Get Serious about Silver - 15th Aug 19
The EagleFX Beginners Guide – Financial Markets - 15th Aug 19

Market Oracle FREE Newsletter

The No 1 Gold Stock for 2019

There's Only One Thing About Syria That Matters to Americans

Stock-Markets / Financial Markets 2013 Sep 10, 2013 - 01:55 PM GMT

By: Money_Morning

Stock-Markets

Shah Gilani writes: Let's talk about Syria and how what's happening there is affecting the markets.

I see oil rising to two-year highs. I see gold rising to three-month highs. Let's see, what else is being affected? Oh, that would be nothing.


And today we find out that, with a touch of some levers somewhere, U.S. GDP growth wasn't really 1.7% in the second quarter, it was really 2.5%.

Let's talk about the GDP growth revision and how that's affecting the markets.

I see oil coming off its Syria-inspired spike and gold giving up some recent gains. Let's see, what else is being affected? Oh, that would be nothing. Well, maybe bonds just a bit.

Let's talk about the U.S. government - the government of the most powerful nation on earth - and how its incompetence and interference and manipulation are affecting the markets.

Right this way...

I've seen bonds rise and yields collapse, and now some backing-up on both fronts. I've seen stocks rise because bonds rose and interest rates collapsed. I've seen the headline unemployment number fall because a lot of people are being hired part-time and a heck of a lot more people have given up looking for careers, jobs, or hamburger-flipping gigs.

I've seen a lot of banks pay a lot of money... where does all that money go, anyway?... in fines levied for civil "crimes" they never say they are guilty of, because it's a pay-to-play game and the House is always collecting from the suckers in the grand casino.

What does it all mean? It means that manipulation is a zero-sum game. Stuff is taken from some people and given to others. It doesn't have to be that way. If only the free markets were allowed to be free, one plus one wouldn't equal one, it would equal two or three or...

Let's talk about Syria, or Iraq, for that matter, or Iran, or Saudi Arabia, heck, let's talk about all of them and how they're affecting markets.

They're only affecting markets and the rest of the world because they are in the Middle East. But the Middle East would be neither here nor there, just some place in the middle, if it wasn't for oil.

The conflicts in the Middle East are mostly based on religion, mostly the same religion. Most of the conflicts are about how to follow Islam, which from Arabic translates to "submission." Al Qaeda, which translated means "The Way," is a movement by a bunch of radical Islamists to force their version of Islam, their meaning of submission, on everybody else's version of Islam. And when Westerners took sides with the governments of the other Islamists who controlled their people, which most Westerners don't care about as long as the oil is flowing, The Way became a war against Westerners.

But here's the thing. If the United States was self-sufficient in oil and energy production, which it always could have been, the Middle East would be some place in the middle of that giant continent and only important because we have an ally smack dab on the precipice of the Middle East. But I'm not going there.

The U.S. government likes to meddle in other people's business when our supposed business interests are at stake. But those interests are increasingly the interests of the oil companies and the war machinery that's the business of defense contractors.

So, while markets aren't doing a whole lot, just waiting in limbo to see if the U.S. fires some Tomahawks or cruise missiles at some safe-houses or storage dumps or runways, we might want to ask our government what they are going to do in Syria after they pockmark it.

Are they going to do there what they did in Afghanistan after they armed the Mujahideen with Stinger missiles to oust the Soviets and then abandon them to the Taliban and their rivals promising The Way? Are they going to do what they did in Iraq and hold back the forces of civil war long enough to claim victory over the evil Saddam Hussein, whom the U.S. backed when they wanted Saddam to fight a border war with Iran for 20 years and watch a million men die? Or are they going to do what they did to Egypt and support a Hosni Mubarak with aircraft and money and then abandon him when a popular and democratically elected Muslim Brotherhood regime worked its way into power, only to stand by and watch the military claw back the reins over their people?

The markets want to know. They're waiting to see how this will affect oil and gold and stocks and the perpetuation of interference and war and wasted American lives.

Let Syria be. There's no proof that Assad used chemical weapons any more than there was proof Saddam had WMDs. There's evidence that someone used chemical weapons, but it could have been the opposition. Or some interested party who will benefit by regime change could have unloaded the chemicals. Think about it, have we seen any pictures of opposition combatants dead and dying from the supposed chemical attacks? If Assad used them, why would he use them on civilian non-combatants, the women and children we see on our T.V. sets? All I'm saying is, why are we rushing into a situation we can't control any more than we could control Afghanistan, or Pakistan, or Iraq, or Iran?

That brings me to managing GDP growth. By the same hand that purports to know how to resolve religious and civil conflicts halfway around the world, are we to believe that hand can successfully manage the free will and entrepreneurship of the American people?

I hate bad government, and that's what we've got, a bad government. This government can't manage the economy any more than it can manage strife in the Middle East. It ceded economic control to the Fed, which it hides behind when things go wrong. This government interferes to make our economy constipated and 1,000 times worse when it should be on a self-correcting path.

I'm sick and tired of America's natural potential being sold up the river by our government to banks and oil companies and warmongers for their profit and patronage.

We have to free ourselves of this bad government, which acts like a Venus flytrap.

We have to free our free markets and let the forces of creative destruction clear out unproductive and insolvent institutions, like the big banks that keep getting propped up time and time again, even after they bring the nation to its knees with their fraudulent schemes.

We have to free ourselves of the oligarchs that make the economy a zero-sum game by taking from the population what is hard earned by hardworking people.

That's what's affecting the markets...

Shah

Source :http://moneymorning.com/2013/09/08/theres-only-one-thing-about-syria-that-matters-to-americans/

Money Morning/The Money Map Report

©2013 Monument Street Publishing. All Rights Reserved. Protected by copyright laws of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), of content from this website, in whole or in part, is strictly prohibited without the express written permission of Monument Street Publishing. 105 West Monument Street, Baltimore MD 21201, Email: customerservice@moneymorning.com

Disclaimer: Nothing published by Money Morning should be considered personalized investment advice. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed as personalized investent advice. We expressly forbid our writers from having a financial interest in any security recommended to our readers. All of our employees and agents must wait 24 hours after on-line publication, or after the mailing of printed-only publication prior to following an initial recommendation. Any investments recommended by Money Morning should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company.

Money Morning Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules