Amplified Bible (AMP)
15The Lord your God will raise up for you [a]a prophet (Prophet) from the midst of your brethren like me [Moses]; to him you shall listen.
New King James Version (NKJV)
A New Prophet Like Moses
15 “The LORD your God will raise up for you a Prophet like me from your midst, from your brethren. Him you shall hear,
Crude oil: US sanctions against Iran and China’s call for WW III
Iran’s Crude Oil is once again targeted by the US as it spruces up to tighten its financial sanctions in a move to deter buyers of Iranian oil. China, has meanwhile threatened a third world war if the US does not stay away from Iran.
The US has been stepping up pressure after a report from the IAEA suggested that Iran may be developing nuclear weapons. Iran has rubbished the allegations by stating that the nuclear technology is being developed only for peaceful purposes. Oil is Iran’s main source of revenue and pumped in $56 billion in the first 7 months of 2011, as per data by the Energy Department. As such, sanction on buying of Oil will strain the Iranian economy, the US believes.
France has also stepped forward to suggest that the EU stop all crude oil imports from Iran. The EU is however split on a decision.
In spite of all the sanctions of the West, crude oil is an important commodity and it is impossible to think that Iran, the third largestCrude Oil exporter, will have a hard time in finding buyers for Oil. Asia, especially China and India have increased their imports from Iran. The Chinese customs expect Iran to be the second largest crude supplier to China in 2011. India, meanwhile, has routed payments through Turkey after finding it difficult to pay for Iran’s crude oil through Europe.
The aggression of the West has been met with strong words from both Russia and China, who have been warning of any attacks on Iran. A Chinese television reported China’s Major General Zhang Zhaozhong as saying that China will not hesitate to protect Iran even with a Third World War in order to safeguard its domestic political needs.
Russia has also voiced similar sentiments regarding Syria with President Dmitry Medvedev publicly stating that he has put the missile attack early warning system in combat mode and will not tolerate any US missile defence system in Europe.
Business, China Is Already Scared Of QE3, And Is Blaming The US For Its Inflation mess
Business | Business Insider | 15 Jul 2011 16:40
Chinese State Council researchers are afraid that more quantitative easing from the U.S. could push up commodities prices in China’s already inflating economy.
Via Shanghai Daily:
“We are following closely whether the United States will introduce QE3, because we believe it will have a major impact on China’s economy,” said Yu, director-general of the Development Research Center’s Department of Macroeconomic Research. “The drastic rise in commodity prices caused by the devaluation of the US dollar will have a major impact on inflation, on economic growth and on Chinese people’s daily lives.”
Yu also said that initiating another QE3 could damage the U.S. economy over the long haul so it should, “be careful.” He didn’t recommend anything specific about what the China would do, though if the U.S. economy worsened- only that China could reduce risks by restructuring its portfolio of foreign reserves.
Meanwhile, some Chinese consumers agree that the U.S. is responsible for higher prices they see at grocery stores.
Via Channel News Asia:
“The source of China’s inflation is America, they are printing too much money,” Zhan Tiehui, 50, told AFP as she clutched plastic bags full of vegetables in a Beijing super market.
That’s a good thing for the Chinese government- a spike in food prices are generally cited as the reason for the Tianmen Square riots.
YEARENDER: Iran’s nuclear drama edges towards the tipping point
By Albert Otti Dec 10, 2011, 2:06 GMT
Vienna – As the West recently peppered Iran with new sanctions over its nuclear programme, protesters stormed the British embassy in Tehran and a US spy plane was seized in Iran.
And while Iran showed no signs that it would answer questions about its alleged nuclear weapons efforts, Israel has been signalling to the Islamic Republic and its Western allies that it would not shrink away from an attack to prevent a nuclear-armed Iran.
Manoeuvring room on both sides of the nuclear stand-off, say diplomats and experts, is shrinking.
‘Next year it might reach a point where Israel in particular may judge Iran too close to the ‘point of no return,” said security expert Mark Fitzpatrick at the IISS think tank in London.
Tensions have been rising since November, when the International Atomic Energy Agency (IAEA) for the first time issued a report with detailed indications that Iran has been designing and testing nuclear weapons parts.
IAEA chief Yukiya Amano said he wanted his chief inspector to travel to Tehran to finally clear up the matter.
Iranian officials consider the latest IAEA report to be based on fake evidence, calling it politically motivated and unacceptable. They have so far not responded to Amano’s call.
The United States, Canada and the European Union each imposed additional sanctions that cut ties with Tehran’s central bank and other entities, but stopped short of blocking Iranian oil imports.
Russia and China have prevented any additional measures by the UN Security Council.
This focus on punitive measures prompted Germany-based nuclear expert Mark Hibbs to say that ‘there is no real commitment to being part of a diplomatic solution with the current Iranian regime’ on the part of Washington and Europe.
Western and European diplomats accredited to the Vienna-based IAEA maintained that the door to talks remained open, but agreed with this assessment overall.
‘The only way that I think we’ll get them to accept engagement is by applying pressure,’ one Western diplomat said, referring to Iran’s leaders.
Besides these efforts, experts believe Israel or the US have launched a covert effort to stall Iran’s nuclear projects, by killing scientists with explosives or by employing a computer virus.
In Washington, President Barack Obama is finding it increasingly difficult to push for talks, rather than pressure, as he runs for a second term in office.
‘It certainly narrows his negotiation room, as Iran is seen across the political spectrum as a four-letter word,’ said Fitzpatrick.
On the other side of the nuclear divide, Iran also has a narrow field of options, which could prolong or escalate the crisis.
‘Iran will not be intimidated by the world powers and not withdraw one iota from its rights,’ President Mahmoud Ahmadinejad said recently, referring to the right of all countries to pursue peaceful nuclear activities.
‘I do not expect Iran to make concessions,’ a European diplomat said in Vienna.
Parliament went even further and planned to force the government to revise its cooperation with the IAEA, but the Foreign Ministry and the Iranian Atomic Organization made it clear that such a move would harm the country and further escalate the situation.
Like Obama, Ahmadinejad is limited by national dynamics: Although his economic and internal policies have a lot critics in Iran, the people support the president on the nuclear issue.
‘Oil and gas will not be forever, therefore who is the West to tell us what we want to use as alternative energy source,’ said a bank clerk in Tehran, who gave his name as Hamid M.
Meanwhile, Iran has become increasingly isolated, not only from the West, but from Arab countries, who in November supported a resolution of the IAEA board that censured Tehran.
This month, Saudi Arabia’s former US ambassador, Prince Turki al-Faisal, said his country should weigh the nuclear military option, as neither Iran nor nuclear-armed Israel are willing to give up their atomic capabilities.
But there are still strong factors holding the players back from the abyss of war.
Iran knows that stopping all cooperation with the IAEA and leaving the global non-proliferation treaty would be seen as a confirmation that it wants a nuclear weapon, and would trigger an Israeli attack, Fitzpatrick said.
On the other hand, Israel is aware that a strike would lead Iranians to rally behind the religious leadership, which is hostile to Israel, Hibbs told dpa.
‘A strike would be a shot in the arm of the regime,’ he said.Central Bank Easing: Zero Hour Has ArrivedBy Michael Sedacca Dec 09, 2011 10:10 am
With QE3 likely happening next week, I wanted to look back at Treasury yields during the past three easing measures.
In the chart below, note how at every point of easing, yields have been at or near their lows. Recently, 10-year Treasury yields have been stuck in a close range from 2.00% to 2.10%, despite the S&P staging a huge rally. This may be the market at work telegraphing that the Fed will ease next Tuesday, or the market asking the Fed for more easing, but it’s probably a mix of both.
Either way, “Zero Hour” — or the point at which central bank easing has no real effect on the economy — has arrived.
Sure, 30-year mortgage rates are at all time lows, but people aren’t buying new houses, they’re renting. I don’t see how the merits of keeping mortgage rates low and the proposed “enabling” of investors to take money out of Treasuries translates to consumers spending or saving their extra capital. Look at what happened when corporations are given tax holidays to bring back their money from overseas. That money wasn’t used to create jobs, it was used to bolster balance sheets (amongst other things like cash dividends and M&A’s). Same can be said for stimulus checks; where did they overwhelmingly go? Savings.
This recent statistic showed that last year $4 of debt was needed to create $1 of GDP. Compare this to 25 years ago when it took only $1 to do the same. Zero Hour is here, and has likely been for some time.
Conspiracy theorists will argue that Fed Chairman Ben Bernanke is using the equity markets as his own pet experiment. I would argue the opposite. The sole important mandate of the Federal Reserve is to preserve the banking system, and regardless of any other facts, this has been achieved. If the Fed had not acted in 2008 and last week by easing liquidity, the banking system would have imploded overnight. If one of the larger banks in the financial system would fail, the resulting daisy chain of offsetting hedges would destroy the financial system as we know it (despite MF Global’s(MFGLQ.PK) failure). The total notional credit derivatives held by the 25 largest US banks alone are five times larger than the GDP of the entire world, a scary statistic that suggests that banks will not be allowed to fail.
As Todd Harrison pointed out last week, over the last year there’s been a lot thrown at the market, and we’re flat for the year. The same can be said for Treasuries. Despite all of the manipulation, easing, injections and interventions, yields remain at lows, and have a negative real return of 1.50% in 10-year Treasuries. If and when the Fed announces QE3 next week, it will be an effort to drive longer-maturity rates higher. However, I don’t believe that shorter-end Treasury’s yields will rise. It’s beneficial to the rest of the world for the US to have low funding costs so that the reverse repos can continue, and so central banks (especially foreign ones) will continue their policy of buying short dated Treasury paper.
- In October 2008, Jesus killed my archenemy with Leukemia and Pancreatic Cancer after my prayers.
- I love the divine bomb in my lungs. Hallelujah.
- I already have a huge jumbo, gigantic, colossal crush on Jesus
- Goodbye, my almost lover and ultimate beauty.
- Lord Jesus Christ is my Lion King. He is my Emperor.