In an attempt to stabilize global oil supplies and reduce energy prices in the face of Libya's missing production, the United States is leading an international effort to release 60 million barrels of crude reserves to world markets.
James Grant in a recent Bloomberg interview discussed U.S. Money Market Fund (MMF) exposure to European sovereign and banking debt [about minute 4 into the video]. The effect of zero interest rates is to cause these MMF managers to scour the planet looking for yield to cover fund fees
Strip away the bailouts and the bogus austerity plans, and the truth is revealed: Greece is a kleptocracy, and the banks and the ECB Eurocrats are both complicit.
The Latest Conference Board Consumer Confidence Index was released this morning based on data collected through June 16th. The 58.5 reading is lower than the consensus estimate of 60.8, reported by Briefing.com, and a decline from the the May upward revision to 61.7 (from 60.8). It is the lowest reading since December 2010.
We have two distinct groups in D.C. that are stuck between a very big rock and a hard place. The first is the Federal Reserve. The second is the Democrats and Republicans and the battle being waged over the debt limit.
Debt, deficit, and demographics—the 3-D hurricane—is heading to the shores of all developed economies. It threatens to derail the lukewarm economic recovery and to alter forever the heretofore path of robust growth for the developed world. In a sense, debt, deficit, and demographics will reset the world to a “New Normal”—an extended period of lower economic and return expectations for the aging and debt-ridden developed world.
The suggestion that there is anything remotely approaching a recovery in the United States, or the world economy, is pure cow pie, as evidenced by the requirement for more borrowing, more easing, and more deterioration in employment and housing. But as the title suggests, its not just America.
With the recent move by the IEA to release oil reserves from SPRs around the world, it continues a game of cat and mouse being played out between the IEA and OPEC.
Let’s dream: Let’s imagine that the American political leadership decides to get serious about U.S. Federal government debt reduction—crazy as it may sound.
The recent release of 60 million barrels of oil (OIL) will artificially lower the price. High oil prices has been the best catalyst for clean energy production and fuel efficient vehicles. Increasing the supply of oil may be pushing down the demand for rare earths(REMX), uranium(URA) and lithium(LIT) only short term. This decline in oil prices should not drastically hurt the development of rare earth assets outside China.