Sunday, December 21, 2014

Saudi/Kuwait: No oil output reduction even if others cut

 Gulf Times
The Saudi and Kuwaiti oil ministers said on Sunday that their countries would not cut oil production even if non-OPEC members reduce their output to shore up sagging oil prices.
"No... I think it's too late now," Saudi Oil Minister Ali al-Naimi told reporters when asked whether OPEC would cut its output if non-OPEC producers were to lower their own.
"If they (non-OPEC) want to cut production they are welcome. We are not going to cut, certainly Saudi Arabia is not going to cut," Naimi said on the sidelines of an energy conference in the United Arab Emirates.
Kuwaiti Oil Minister Ali al-Omair agreed.
"I don't think we need to cut. We gave a chance to others and they were not willing to do so," Omair said.
"OPEC will not cut. Nothing will happen until June and there is no emergency meeting," he said.
The two countries are influential members of OPEC and along with the UAE and Qatar pump around 16 million barrels a day, or more than half of total OPEC output.
The Organisation of Petroleum Exporting Countries decided last month to maintain its production unchanged at 30 million barrels per day, which led to a slump in oil prices.
The benchmark Brent oil price is hovering around $60 a barrel after losing almost half of its value since June because of a glut in supplies, the weak global economy and the strong US dollar.

So other oil producers should cut their production?

Friday, December 19, 2014

Why Doctors Aren't Shocked that Mumps has hit the NHL


 

I was not intending on posting today, being a tad under the weather. However, their are times when information calls out to me.... "place me at the blog" it implores ! And so, it must be.

Fully realizing that some readers still here, or perhaps no longer here, can't get past their cognitive dissonance when it comes to the fact that they hold a completely unsubstantiated and unrealistic belief in VACCINE. Their effectiveness. Their safety. The ethics of the pharmaceutical  manufacturers. An almost irrational belief that the first priority for big pharma is something other then profit?! And lots of it!

People who are so willing to question and for good reason the many others lies that are presented to us all as truth. The unreality that is presented as reality. Everyday. The lies about war. The reasons for war. The lie presented to us all about the private banking system. Money as debt. War is a racket, it really is.
But for some reason the indoctrination regarding vaccines is on par with a cult like belief.  The big lie. Catapulting of the propaganda.
And yet it is quite obvious..... there are heaps of problems with vaccines. Problems that are adversely affecting us all. Adversely affecting our environment. Adversely affecting our immune systems.
Rather then honestly look at that which may be harming us all in a manner equal to the way we cast a critical eye on government, war, bankers, etc., far too many choose to cover their eyes, ears and make humming noises.
This week seeing all those grown men with bumped out cheeks?! Grown ups with the mumps! Absolutely unheard of. As a child, mumps was as common as a cold. Kids had them. Along with chicken pox and measles. I know, because I had them all! As a child. But adults didn't. Not one adult in my family or extended family had the mumps. While the kids in my neighbourhood passed mumps around none of our parents had them. You know why? Because they had a lifetime immunity, their wonderful immune system had created just for them.

My, my, my how things have changed. And definitely not for the better.
 Past generations of professional hockey players were never at risk of mumps outbreaks. Today's players are, and tomorrow's will be, along with adults generally. These outbreaks -- which the media portray as coming out of the blue -- don't surprise anyone in medical circles who has been paying attention. Mumps outbreaks among aduIts have long been predicted by public health experts. Ironically, the mumps vaccine itself makes these outbreaks inevitable.
A century ago, before sanitation and public health improvements, mumps was a risky disease. By the 1950s, it had become largely benign, a childhood disease that especially hit five- to nine-year-olds, and almost everyone by their late teens. Once infected, children obtained lifetime immunity, making mumps rare in adulthood.
Because mumps was dangerous in adults -- complications can include sterility in males and, in pregnant women, the loss of the child -- public health authorities in the 1950s and 1960s predicted that the mumps vaccine then being proposed would backfire.
Health authorities in the '50's and 60's predicted that the mumps vaccine would backfire and they were absolutely 100 percent correct as evidenced by the ever larger, yearly outbreaks despite massive vaccination campaigns.

Mumps and other once-perilous childhood diseases "have been brought under control and there is cause to rejoice in the fact ... that epidemics are becoming scarce," Dr. E. H. Lossing, the chief of epidemiology at the federal government's Department of Health and Welfare, wrote in 1955.  Mumps no longer remained "of sufficient gravity in terms of morbidity, mortality or disability to justify universal and probably repeated vaccination. Unless lifelong immunity is conferred by the primary vaccination, which seems unlikely, should the attack merely be postponed to older ages when economic loss and risk of complications are greater?"

My goodness, the man was a seer. He saw no value in pushing a universal vaccine, mumps among children being so mild, so common place and having the bonus of conferring a lifetime immunity! The vaccination could never do such a thing
Dr. Lossing was prescient on all counts. The mumps vaccine does not confer children with lifelong immunity, repeated vaccinations have become the rule, and mumps has become an adult disease that threatens to be costlier in terms of both time off work and health. But mumps vaccination has turned out to be even iffier than Dr. Lossing might have imagined, because the mumps vaccine is a staggering underperformer.
For one thing, the vaccine is a dud with many, accomplishing no good at all. "Right off the bat, when you give it to 100 people, 15 won't respond," states Dr. Gregory Poland, head of the Mayo Clinic's Vaccine Research Group, one of the world's largest and most authoritative. Even when the vaccine does take, its full benefit often doesn't last long -- just one or two years before the level of antibodies drops below the level required to protect against mumps, according to a study in the Journal of Infectious Diseases. By the eighth year, the antibody levels have plummeted to just one third the level required for protection.
Our individual genetic makeup is a factor, possibly explaining why even fully vaccinated super-fit athletes like Sidney Crosby can become infected. "There are some people who carry specific forms of immune function genes so that they don't respond or they respond poorly to a vaccine,"  Dr. Poland explained. Crosby appears to have overcome his bout with mumps, as most do but genetic predispositions can sometimes lead to tragedy. To date, the U.S. government's Vaccine Injury Compensation Program has received 962 claims for serious injuries involving mumps vaccines, 58 of them causing deaths, and granted compensation in 371 claims.

That is claims for serious injury, including death. From a vaccine of little value.
Sometimes the problem isn't with the person but with the vaccine. According to a 2012 study by the Office of Inspector General of the U.S. Department of Health and Human Services, children's vaccines managed by 76 per cent of vaccine providers "were exposed to inappropriate temperatures for at least five cumulative hours [which] can reduce vaccine potency and efficacy." Vaccines "are only as good as their storage and administration," Dr. Poland said.
The mumps vaccine may suffer from another problem, too -- scientific misconduct. In September, a U.S. District Court found plausible claims that pharmaceutical giant Merck falsified data and otherwise engaged in fraudulent activities in order to win U.S. Food and Drug Act approval -- and a monopoly in the U.S. market -- for its mumps vaccine. Merck will as a result be appearing in at least two federal court cases to defend itself: United States v. Merck & Co and Chatom Primary Care v Merck & Co, a class action suit by doctors and medical practices who claim they were sold an overpriced and defective product.
 Say it isn't so! I am shocked, truly! Merck lied. Merck engaged in fraudulent activity to guarantee itself a nice big fat profit based on it's monopolization of the US market
Both court cases stem from two former Merck scientists-turned-whistleblowers who participated in the falsifications first hand and, according to court documents, were ordered by Merck to keep silent about the test results, which showed the vaccine to be less effective than needed to be licensed.
The falsified, fraudulently robust results discouraged competing manufacturers from entering the mumps market, preventing a truly efficacious vaccine from being developed and making Merck a monopoly provider. The court documents also state that Merck expected increased outbreaks of mumps over time because its vaccine would fail.
So Merck created a shitty vaccine, lied about it's efficacy all the while knowing full well that mumps outbreaks would increase thereby requiring more vaccinations, guaranteeing more profits for Merck- What a business plan! 
And that's what it was a business plan- A profit generator. A money maker...
Still think Merck or any other pharmaceutical CORPORATION give a hoot about your health? They don't. They need you sick so they can generate profits.... 

 You know who really should be watching out for their own health? Each of us. And that includes using our critical thinking/logic and questioning the validity of the God/Vaccine cult and all it's claimed miracles
As it turned out, outbreaks among the vaccinated came: 2006 saw more than 6,500 cases in the U.S. Midwest -- the largest in 20 years -- with 84 per cent of the young adults afflicted having had two doses of the mumps vaccine. In 2009, 5,000 cases occurred, again among those with a high vaccination rate.

Mumps outbreaks, in fact, occur continually, most of them small and unreported. In the first 11 months of 2014, the outbreaks in the U.S. added up to 1,078 cases of mumps. They are attracting attention today only because NHL players are involved. And they will attract attention in future because mumps will more and more become an adult worry.

You can engage in adhominem?  You can attack the messenger? 
But,  your denial isn't going to change reality or  facts. 
There are troubles with vaccines. Real troubles.


Thursday, December 18, 2014

OMG! "ISIS" brand rebel approaches Israel's (illegal occupation) Golan border!!!

From Haaretz- Don't worry, I have the article for you all to read!

 Keeping in mind the FACT that Israel has been in cahoots with the NATO/Israeli mercenaries since they were first being marketed under the brand FSA. Then when brand FSA  allegedly fell apart or simply regrouped under it's new brand Al Nusra or whatever other brand name these fighters are going by Israel kept right on supporting them. Nothing changed but the name. The agenda stayed exactly the same

BUT NOW...... I shudder (not really, more a chuckle at the nonsense spewed) and apparently so does Israel as the FSA which became Al Nusra or Nusra Front or whatever other brand was being tossed around, an affiliate of Al Qaeda, has now morphed into ISIS!!! It's the same fighters- They are just changing names- And swearing loyalty!  I suspect the marketing for any moves made by Israel is about to change.  Now Israel is going to have to fight the great ISIS- Booga booga.

I managed to get the full Haaretz article via this link

For the first time since the Syrian civil war began in early 2011, Islamic State (also known as ISIS or ISIL) has gained a presence near the border with Israel on the Golan Heights.

According to Arab media reports, three local jihadist groups that were fighting against the Assad regime in the southern Golan swore fealty this week to ISIS and its leader, Abu Bakr al-Baghdadi.

Until now, ISIS had no presence near the border with Israel, though other rebel groups did. Over the past few months, the rebels have pushed Syrian President Bashar Assad’s forces out of most of the area near Israel, and today they control about 90 percent of the border region – from the point where Israel, Syria and Jordan all meet in the south to a few kilometers beyond the Quneitra border crossing in the north. Assad’s forces control only the area around Mount Hermon and the Hader enclave south of the Hermon, which contains several Druze villages.

The rebel forces controlling the border comprise a loose coalition of numerous groups, including the Nusra Front, which is affiliated with Al-Qaida; the Free Syrian Army; and several other militias, both Islamist and secular. As Defense Minister Moshe Ya’alon confirmed in an interview with Haaretz in October, Israel maintains low-profile ties with the more moderate rebel groups and provides medical treatment in its hospitals to residents of the area under their control. Ya’alon added that “this happens on condition that [these militias] don’t allow the more radical groups to reach the border.”

But now, a new player, the most radical of all, appears to have entered the picture. According to Arab media reports, three small Islamist factions Shuhada al-Yarmouk, the Abu Mohammed al-Tilawi Brigades and Bayt al-Maqdis – announced earlier this week that they are transferring their allegiance to ISIS.

So these three small factions (underlined) must be three of the several militias mentioned in the paragraph above (highlighted in yellow) that were already cooperating with Israel- but now they have rebranded themselves....

The largest of the three, Shuhada al-Yarmouk, comprises a few hundred armed men, while the other two contain only several dozen each. All three are concentrated around Daraa, the town in southern Syria where the rebellion against Assad began. Daraa is several dozen kilometers from the Israeli border, but some of the newly minted ISIS fighters hold positions just a few kilometers away from the border.

As they always have- reread:
" rebels have pushed Syrian President Bashar Assad’s forces out of most of the area near Israel, and today they control about 90 percent of the border region – from the point where Israel, Syria and Jordan all meet in the south to a few kilometers beyond the Quneitra border"

Map of Syria:

 See where Israel, Jordan, Syria meet? - See Daara ? (Dar'a) See Quneitra? (Al qunaytirah) Same area Israel's Islamist fighters have been holed up- Same place as ISIS is now, because of the rebrand!- Nothing has changed except the spin!
In November, something similar happened in Sinai, when the largest Islamist group operating in the peninsula, Ansar Bayt al-Maqdis, also swore fealty to ISIS, just a year and a half after having been recognized as the Sinai branch of Al-Qaida. Experts in global jihad organizations say these organizations are transferring their allegiance from Al-Qaida to ISIS because the latter is seen as the rising power. It is becoming increasingly popular, with numerous operatives and sympathizers, and it also has enormous wealth that can be shared with its new loyalists, thanks to the oil fields it controls in northern Iraq and eastern Syria.

Though Ansar Bayt al-Maqdis’ primary target is the Egyptian government, it has also attacked Israel on occasion. The most noteworthy one occurred in August 2011, when its operatives infiltrated Israel and killed six civilians and two members of the security forces at Ein Netafim, north of Eilat.

On the Syrian border, in contrast, jihadist groups have so far made no real attempt to attack Israel. But even though Israel isn’t currently high on these groups’ priority list, focused as they are on their war against the Syrian army and Hezbollah, the intelligence community believes they might try to attack Israel as well. Given this, the new declaration of loyalty to ISIS is considered a worrying development that must be monitored closely.
So all these so called terrorists have so far targeted only Syria & Egypt, but not Israel, however with this rebrand and a fresh new sales campaign Israel can  justify attacking both Syria and Egypt- It's win/win for Israel's land grabbing agenda

Sadly too many people are going to be taken in by this ruse, not realizing it's been the same fighters backed by Israel all along and assisting the Israel agenda

So now you understand my disgust at the VICE nonsense? Is the IDF checking the ID of those fighters they aid? They don't have to. They know each and everyone of them is their boy!

From earlier today: Vice News: IDF Aiding THEIR Terrorists in Golan

 You see ID being checked? Me either!

 

Don't Miss Putin's talk: Putin's Press Conference: Transcript

Putin's Press Conference: Transcript

PRESIDENT OF RUSSIA VLADIMIR PUTIN:

Good afternoon, colleagues.
From here

 <br>        At a news conference of Vladimir Putin.

I am very happy to see you in high spirits. As we did last time, I will begin by briefing you on the work done during the year and then I will try to answer your questions.
First the most important thing: the economic performance. In the first 10 months of this year, the gross domestic product grew by 0.7 percent, and the final figure may be around 0.6 percent. My colleagues and I met yesterday to finalise the figures. The trade surplus grew by $13.3 billion to reach $148.4 billion.
Industrial production picked up some speed after last year’s lull. In the first 10 months of the year, it went up by 1.7 percent. Unemployment is also low: at times, it dropped to below 5 percent, and now it is around 5 percent, possibly 5.1 percent.
The agroindustrial complex is developing. I believe that by the end of the year growth there will amount to 3.3 percent. As you may know, this year we had a record crop of 104 million tonnes.
Despite the turbulent situation on the financial market, the federal budget this year will show a surprlus. In other words, revenue will exceed expenses by 1.2 trillion rubles [over $20 billion], which is about 1.9 percent of the GDP. The Finance Ministry is still working on the final calculations, but the surplus is definite.
The main achievement of the year in the social sphere is of course the positive demographics.
Natural population growth in the first 10 months of the year was 37,100 people. The death rate is going down in this country, while the birth rate is increasing. This is a very good trend and we must make every effort to maintain it. As promised, we continued adjusting the maternity capital. In 2014 it amounted to 429,408.5 rubles.
We have met and exceeded the targets set for this year for salary rates for ten workforce categories. I am sure you know what I am talking about. First of all, these are teachers at schools and institutions providing supplementary education, counsellors, university faculty members, medical doctors, paramedics and nurses, and employees of cultural institutions. In 2014, we adjusted pensions to inflation twice: by 6.5 percent on February 1 and by an additional 1.7 percent on April 1.
We gave significant attention this year to enhancing the combat capability and efficiency of the Armed Forces. I will not go into detail here. I would only like to mention the social sphere. In 2014, 11,700 Defence Ministry servicemen received permanent housing and 15,300 received service housing. This is 100 percent of the year’s target figures.
These are the numbers I wanted to begin with. Now a few words regarding the current situation. I believe we all know that the main issue of concern to this country’s citizens is the state of the economy, the national currency and how all this could influence developments in the social sphere. I will try to briefly describe this situation and say how I expect it to develop. Basically, that is where we could end this news conference. (Laughter) However, if you have any further questions I will try to answer them.
The current situation was obviously provoked primarily by external factors. However, we proceed from the view that we have failed to achieve many of the things that were planned and that needed to be done to diversify the economy over the past 20 years. This was not easy, if at all possible, given the foreign economic situation, which was favourable in the sense that businesses were investing into areas that guaranteed maximum and fast profits. This mechanism is not easy to change.
Now, as you may know, the situation has changed under the influence of certain foreign economic factors, primarily the price of energy resources, of oil and consequently of gas as well. I believe the Government and the Central Bank are taking appropriate measures in this situation. We could question the timeliness or the quality of the measures taken by the Government and the Central Bank, but generally, they are acting adequately and moving in the right direction.
I hope that yesterday’s and today’s drop in the foreign currency exchange rate and growth of our national currency, the ruble, will continue. Is this possible? It is. Could oil prices continue falling and would this influence our national currency and consequently all the other economic indexes, including inflation? Yes, this is possible.
 <br>        At a news conference of Vladimir Putin.

What do we intend to do about this? We intend to use the measures we applied, and rather successfully, back in 2008. In this case, we will need to focus on assistance to those people who really need it and on retaining – this is something I would like to highlight – retaining all our social targets and plans. This primarily concerns pensions and public sector salaries, and so forth.
Clearly, we would have to adjust our plans in case of any unfavourable developments. We would certainly be forced to make some cuts. However, it is equally certain – and I would like to stress this – that there will be what experts call a positive rebound. Further growth and a resolution of this situation are inevitable for at least two reasons. One is that the global economy will continue to grow, the rates may be lower, but the positive trend is sure to continue. The economy will grow, and our economy will come out of this situation.
How long will this take? In a worst-case scenario, I believe it would take a couple of years. I repeat: after that, growth is inevitable, due to a changing foreign economic situation among other things. A growing world economy will require additional energy resources. However, by that time I have no doubt that we will be able to do a great deal to diversify our economy, because life itself will force us to do it. There is no other way we could function.
Therefore, overall, I repeat, we will undoubtedly comply with all our social commitments using the existing reserves. Fortunately, this year they have even grown.
I would like to remind you that Central Bank reserves amount to $419 billion. The Central Bank does not intend to ‘burn’ them all senselessly, which is right. The Government reserve, the National Wealth Fund, the Reserve Fund have grown this year by about 2.4-2.5 trillion rubles to a total 8.4 trillion rubles. With these reserves I am certain we can work calmly to resolve our main social issues and to diversify the economy; and I will repeat that inevitably the situation will return to normal.
I would like to end my introductory remarks here. As I have said, we could end the whole news conference here, but if you do have any questions, I am ready to answer them.

You can find the question/answer exchange here (same link as above)

Don't Miss:

Vice News: IDF Aiding THEIR Terrorists in Golan

Vice News: IDF Aiding THEIR Terrorists in Golan

The IDF invites a, very friendly, alleged journalist to the show "In part one of a five-part series, VICE News correspondent Simon Ostrovsky gets exclusive access to an IDF special operation, highlighting an unusual relationship they (IDF) have with their Syrian enemies across the border."

Of course the spin is these "Syrian fighters" are Israel's enemy. Readers here know that is a blatant, huge LIE. These fighters are Israel's fighters. And they have been for many years now.
Most of these fighters aren't even Syrians! They are a united nations of killers.

Get your barf bag ready and please ignore the perception management/spin/mind control as the IDF  evacuates their irregular army from the war zone



I have covered repeatedly the reality of Israel's backing of these terrorists in Syria.
VICE is just another lying media outlet masquerading as something hip. It's not hip. VICE is not cool. VICE is more of the same- Repackaged.

Time of Israel 

I will not be putting up the entire 5 part series. One part is all that is needed to understand the lies, the spin, the obfuscation, the perception management that would be contained in all 5 parts


A partial list of what must be dozens of  posts regarding Israel supporting the killers of innocent Syrians and the destruction of Syria, long before VICE got the special invite to spin Israel's wheel of  propaganda :




Flashback Dec 7/14: Israel attacks Syria aiding their takfiri (Kurds and others) Netanyahu hints in advance

Flashback- September 17/14: Syria: Israel Helping "rebels" in Golan-prep for war expansion

Flashback Sept. 17/2103- Ambassador Oren: Israel has wanted Assad ousted since BEFORE Syria war began

Flashback September 11/2013: Diplomacy on Syria is not what Israel wants!

Flashback!- Sept 23/2013: Israel Sides with Syrian Jihadists

Flashback! November 2012: Who loves Islamists? Israel loves Islamists! Israel & FSA work together

Tuesday, December 16, 2014

The Oil Coup- US/Saudi dirty dealing- Equity Bubble Burst?

Well I lied! Can't get away from this dam blog. Patient Hubby- :)

Anyway this just hit my inbox and it's a doozy. Ties in nicely with the preceding post- Ellen Brown: The Global Banker Coup- Bail ins and more

The latest- The Oil Coup- Mike Whitney December 16, 2014


US-Saudi Subterfuge Send Stocks and Credit Reeling
“John Kerry, the US Secretary of State, allegedly struck a deal with King Abdullah in September under which the Saudis would sell crude at below the prevailing market price. That would help explain why the price has been falling at a time when, given the turmoil in Iraq and Syria caused by Islamic State, it would normally have been rising.” (Stakes are high as US plays the oil card against Iran and Russia, Larry Eliot, Guardian)
U.S. powerbrokers have put the country at risk of another financial crisis to intensify their economic war on Moscow and to move ahead with their plan to “pivot to Asia”.
Here’s what’s happening: Washington has persuaded the Saudis to flood the market with oil to push down prices, decimate Russia’s economy, and reduce Moscow’s resistance to further NATO encirclement and the spreading of US military bases across Central Asia. The US-Saudi scheme has slashed oil prices by nearly a half since they hit their peak in June. The sharp decline in prices has burst the bubble in high-yield debt which has increased the turbulence in the credit markets while pushing global equities into a tailspin. Even so, the roiled markets and spreading contagion have not deterred Washington from pursuing its reckless plan, a plan which uses Riyadh’s stooge-regime to prosecute Washington’s global resource war. Here’s a brief summary from an article by F. William Engdahl titled “The Secret Stupid Saudi-US Deal on Syria”:
“The details are emerging of a new secret and quite stupid Saudi-US deal on Syria and the so-called IS. It involves oil and gas control of the entire region and the weakening of Russia and Iran by Saudi Arabian flooding the world market with cheap oil. Details were concluded in the September meeting by US Secretary of State John Kerry and the Saudi King…
..the kingdom of Saudi Arabia, has been flooding the market with deep discounted oil, triggering a price war within OPEC… The Saudis are targeting sales to Asia for the discounts and in particular, its major Asian customer, China where it is reportedly offering its crude for a mere $50 to $60 a barrel rather than the earlier price of around $100. That Saudi financial discounting operation in turn is by all appearance being coordinated with a US Treasury financial warfare operation, via its Office of Terrorism and Financial Intelligence, in cooperation with a handful of inside players on Wall Street who control oil derivatives trading. The result is a market panic that is gaining momentum daily. China is quite happy to buy the cheap oil, but her close allies, Russia and Iran, are being hit severely…
According to Rashid Abanmy, President of the Riyadh-based Saudi Arabia Oil Policies and Strategic Expectations Center, the dramatic price collapse is being deliberately caused by the Saudis, OPEC’s largest producer. The public reason claimed is to gain new markets in a global market of weakening oil demand. The real reason, according to Abanmy, is to put pressure on Iran on her nuclear program, and on Russia to end her support for Bashar al-Assad in Syria….More than 50% of Russian state revenue comes from its export sales of oil and gas. The US-Saudi oil price manipulation is aimed at destabilizing several strong opponents of US globalist policies. Targets include Iran and Syria, both allies of Russia in opposing a US sole Superpower. The principal target, however, is Putin’s Russia, the single greatest threat today to that Superpower hegemony. (The Secret Stupid Saudi-US Deal on Syria, F. William Engdahl, BFP)
The US must achieve its objectives in Central Asia or forfeit its top-spot as the world’s only superpower. This is why US policymakers have embarked on such a risky venture. There’s simply no other way to sustain the status quo which allows the US to impose its own coercive dollar system on the world, a system in which the US exchanges paper currency produced-at-will by the Central Bank for valuable raw materials, manufactured products and hard labor. Washington is prepared to defend this extortionist petrodollar recycling system to the end, even if it means nuclear war.
How Flooding the Market Adds to Instability
The destructive and destabilizing knock-on effects of this lunatic plan are visible everywhere. Plummeting oil prices are making it harder for energy companies to get the funding they need to roll over their debt or maintain current operations. Companies borrow based on the size of their reserves, but when prices tumble by nearly 50 percent–as they have in the last six months– the value of those reserves falls sharply which cuts off access to the market leaving CEO’s with the dismal prospect of either selling assets at firesale prices or facing default. If the problem could be contained within the sector, there’d be no reason for concern. But what worries Wall Street is that a surge in energy company failures could ripple through the financial system and wallop the banks. Despite six years of zero rates and monetary easing, the nation’s biggest banks are still perilously undercapitalized, which means that a wave of unexpected bankruptcies could be all it takes to collapse the weaker institutions and tip the system back into crisis. Here’s an excerpt from a post at Automatic Earth titled “Will Oil Kill the Zombies?”:
“If prices fall any further, it would seem that most of the entire shale edifice must of necessity crumble to the ground. And that will cause an absolute earthquake in the financial world, because someone supplied the loans the whole thing leans on. An enormous amount of investors have been chasing high yield, including many institutional investors, and they’re about to get burned something bad….. if oil keeps going the way it has lately, the Fed may instead have to think about bailing out the big Wall Street banks once again.” (Will Oil Kill the Zombies?, Raúl Ilargi Meijer, Automatic Earth)
The problem with falling oil prices is not just mounting deflation or droopy profits; it’s the fact that every part of the industry–exploration, development and production — is propped atop a mountain of red ink (junk bonds). When that debt can no longer be serviced or increased, then the primary lenders (counterparties and financial institutions) sustain heavy losses which domino through the entire system. Take a look at this from Marketwatch:
“There’s ‘no question’ that for energy companies with a riskier debt profile the high-yield debt market “is essentially shut down at this stage,” and there are signs that further pain could hit the sector, ” senior fixed-income strategist at U.S. Bank Wealth Management, Dan Heckman told Marketwatch. “We are getting to the point that it is becoming very concerning.” (Marketwatch)
When energy companies lose access to the market and are unable to borrow at low rates, it’s only a matter of time before they trundle off to extinction.
On Friday, the International Energy Agency (IEA) renewed pressure on prices by lowering its estimate for global demand for oil in 2015. The announcement immediately sent stocks into a nosedive. The Dow Jones Industrial Average (DJIA) lost 315 points by the end of the day, while, according to Bloomberg, more than “$1 trillion was erased from the value of global equities in the week”.
The world is awash in cheap petroleum which is wreaking havoc on domestic shale producers that need prices of roughly $70 per barrel to break-even. With West Texas Intermediate (WTI) presently headed south of 60 bucks–and no bottom in sight–these smaller producers are sure to get clobbered. Pension funds, private equity, banks, and other investors who gambled on these dodgy energy-related junk bonds are going to get their heads handed to them in the months ahead.
The troubles in the oil patch are mainly attributable to the Fed’s easy money policies. By dropping rates to zero and flooding the markets with liquidity, the Fed made it possible for every Tom, Dick and Harry to borrow in the bond market regardless of the quality of the debt. No one figured that the bottom would drop out leaving an entire sector high and dry. Everyone thought the all-powerful Fed could print its way out of any mess. After last week’s bloodbath, however, they’re not nearly as confident. Here’s how Bloomberg sums it up:
“The danger of stimulus-induced bubbles is starting to play out in the market for energy-company debt….Since early 2010, energy producers have raised $550 billion of new bonds and loans as the Federal Reserve held borrowing costs near zero, according to Deutsche Bank AG. With oil prices plunging, investors are questioning the ability of some issuers to meet their debt obligations…
The Fed’s decision to keep benchmark interest rates at record lows for six years has encouraged investors to funnel cash into speculative-grade securities to generate returns, raising concern that risks were being overlooked. A report from Moody’s Investors Service this week found that investor protections in corporate debt are at an all-time low, while average yields on junk bonds were recently lower than what investment-grade companies were paying before the credit crisis.” (Fed Bubble Bursts in $550 Billion of Energy Debt: Credit Markets, Bloomberg)
The Fed’s role in this debacle couldn’t be clearer. Investors piled into these dodgy debt-instruments because they thought Bernanke had their back and would intervene at the first sign of trouble. Now that the bubble has burst and the losses are piling up, the Fed is nowhere to be seen.
In the last week, falling oil prices have started to impact the credit markets where investors are ditching debt on anything that looks at all shaky. The signs of contagion are already apparent and likely to get worse. Investors fear that if they don’t hit the “sell” button now, they won’t be able to find a buyer later. In other words, liquidity is drying up fast which is accelerating the rate of decline. Naturally, this has affected US Treasuries which are still seen as “risk free”. As investors increasingly load up on USTs, long-term yields have been pounded into the ground like a tentpeg. As of Friday, the benchmark 10-year Treasury checked in at a miniscule 2.08 percent, the kind of reading one would expect in the middle of a Depression.
The Saudi-led insurgency has reversed the direction of the market, put global stocks into a nosedive and triggered a panic in the credit markets. And while the financial system edges closer to a full-blown crisis every day, policymakers in Washington have remained resolutely silent on the issue, never uttering as much as a peep of protest for a Saudi policy that can only be described as a deliberate act of financial terrorism.
Why is that? Why have Obama and Co. kept their mouths shut while oil prices have plunged, domestic industries have been demolished, and stocks have gone off a cliff? Could it be that they’re actually in cahoots with the Saudis and that it’s all a big game designed to annihilate enemies of the glorious New World Order?
It certainly looks that way.

An aside: I see many half wits out there presenting this as a Saudi war on 'shale oil'- It is not and never has been. The plot is bigger & more diabolical. Possibly moves taken, to "unwind" or just burst the latest bubble- THE EQUITY BUBBLE

WSJ- Yes, this is an equity bubble
“Make no mistake – this is an equity bubble, and a highly advanced one,” the bearish portfolio manager wrote in his weekly commentary. “On the most historically reliable measures, it is easily beyond 1972 and 1987, beyond 1929 and 2007, and is now within about 15% of the 2000 extreme.”
Whew! Tomorrow is my day off and everyone has plenty of reading to catch up on!

Ellen Brown: The Global Banker Coup- Bail ins and more

Whooping Cough hits California- 90% of patients vaccinated

Canada revisits "Homeland Missile Defence" ?

 

Ellen Brown: The Global Banker Coup- Bail ins and more

As mentioned last week-

Could or Would the US bail out it's own oil sector (and the banks)??

At that time I refreshed readers memories on several previous posts regarding the bail in or haircut scenario
There won't be a bailout. It will be haircuts. Remember? The plans have been made. 
This banker scam was first mentioned in 2013 and recently below- Going Global!
Links back to the two 2013 posts are included in the post from Nov 11/2014
Banksters: Global Haircuts= Global Plunder. Legalizing the theft of your savings.
Pt.1: Giving Canadians and everyone, everywhere a Cypriot Style Haircut- "to the wood"
Pt.2: Giving Canadians and everyone,everywhere, a Cypriot Style Haircut- “to the wood”

So, here is Ellen Brown's take on this situation!


fsb
On December 11, 2014, the US House passed a bill repealing the Dodd-Frank requirement that risky derivatives be pushed into big-bank subsidiaries, leaving our deposits and pensions exposed to massive derivatives losses. The bill was vigorously challenged by Senator Elizabeth Warren; but the tide turned when Jamie Dimon, CEO of JPMorganChase, stepped into the ring. Perhaps what prompted his intervention was the unanticipated $40 drop in the price of oil. As financial blogger Michael Snyder points out, that drop could trigger a derivatives payout that could bankrupt the biggest banks. And if the G20’s new “bail-in” rules are formalized, depositors and pensioners could be on the hook.
The new bail-in rules were discussed in my last post here. They are edicts of the Financial Stability Board (FSB), an unelected body of central bankers and finance ministers headquartered in the Bank for International Settlements in Basel, Switzerland. Where did the FSB get these sweeping powers, and is its mandate legally enforceable?
 Continue reading at Ellen Brown's blog

You may also want to read this from Market Watch - How Obamacare helped Wall Street 

In passing a grand bargain $1.1 trillion spending bill, Congress approved an amendment that essentially puts taxpayers on the hook for bank bailouts. The change eliminates the so-called “push-out” rule, which was part of the Wall Street overhaul, the Dodd-Frank Act in 2010. The act specifically banned Federal Deposit Insurance Corp. or Federal Reserve protections to banks’ derivative losses.
In other words, in the watered-down Dodd-Frank Act, it was probably the most effective new law other than the creation of the Consumer Financial Protection Bureau.
Of course, the banks hated it. Not just any banks, the big banks. The five of the six biggest banks: Bank of America Corp. BAC, -0.77%  , Citigroup Inc. C, -3.07%  , J.P. Morgan Chase & Co. JPM, -1.23%  , Goldman Sachs Group Inc. GS, -1.20%  and Morgan Stanley MS, -1.14%  account for 96% of derivatives trading.
So, the banks essentially shifted their effort from repealing the “push-out” rule to simply jamming a repeal into the nation’s big annual spending bill. To that end, Wall Street found the perfect guy for the job: Kansas Republican Rep. Kevin Yoder. In a statement, Yoder said he introduced the amendment on behalf of farmers and regional banks in his district, which by the way, is mostly a suburb of Kansas City.
Yoder seems to have drawn inspiration not from the people of Overland Park, but Park Avenue: a Citigroup memorandum apparently was reflected in 70 of the 85 lines Yoder submitted in the amendment.
In an editorial, the Kansas City Star called Yoder’s amendment “regrettable” and stated the congressman aided a “nefarious goal.”
You probably won’t be surprised to find out that Yoder took nearly $300,000 from financial companies and the real estate industry in the last election cycle. Wall Street represented more than 10% of his $2.1 million in fundraising, more than any other industry, according to Opensecrets org.
But it would be unfair to simply blame Yoder. There could have been an outcry. Democrats of the Sen. Elizabeth Warren wing of the party. Anti-bailout Republicans of the Sen. Richard Shelby variety.
There weren’t, or at least weren’t enough, of course. The amendment passed without a formal recorded vote amid heavy pressure from Wall Street. Jamie Dimon, the chief executive and chairman of J.P. Morgan, reportedly called lawmakers to urge passage of the spending bill in the week before the vote.
Perhaps Dimon reminded his friends in Congress that the financial industry spent $1.2 billion in lobbying and campaign finance this election cycle. Or maybe, like Citigroup and Yoder, he was worried about farmers suffering from a lack of rain and the disappearance of a taxpayer backstop on credit-default swaps. You know, agriculture stuff.
Take it all in.. Christmas is almost upon us. The time when bankers and their lackies get the job done!
You should be aware....

Don't Miss!!!!

Whooping Cough hits California- 90% of patients vaccinated

Canada revisits "Homeland Missile Defence" ?

 Something for everyone!