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Reactions and Risks as Trading Clarity Remains Hard to Grasp

Reactions and Risks as Trading Clarity Remains Hard to Grasp

While many U.S government officials try to shrug off the downgrade of U.S Treasuries by Fitch Ratings last week, a warning shot has been fired regarding U.S spending and the nation’s growing deficit. Janet Yellen and others may believe the downgrade should not have happened, but the prospect that the U.S golden goose is going to stop eventually producing enough eggs is a realistic viewpoint from Fitch. Risk adverse trading on the news was seemingly sparked from the U.S Treasuries downgrade, while many prominent figures including Warren Buffet have claimed they are not worried. However, one thing that the downgrade did was certainly create more clouds for financial institutions which have already been suffering from a lack of clarity the past three weeks.

U.S economic policy remains troubling regarding its spending, and while the government believes its bonds will remain the best in the world for the foreseeable future, it would certainly help matters if responsible ‘adults’ would be allowed a voice regarding stimulus, expenditures and debt ceiling concerns. The U.S has been warned, but with a major presidential campaign approaching on the horizon, more promises to the U.S public will likely carry greater long-term costs.

Gold One Week Chart as of 8th August 2023

While the USD did get stronger across Forex and gold finished last week near lows, some major currencies finished Friday with slight reversals higher against the USD before going into the weekend, based on the weaker than anticipated Non-Farm Employment Change outcome. However, Average Hourly Earnings came in slightly higher. The rise in wages for employees wasn’t expected, but the gains via the inflation number may not have been considered significant enough to cause a panic.

Day traders trying to navigate through the news of the ratings downgrade and the mixed jobs numbers from the U.S may have gotten ripped apart from the volatility late last week. Forex brokers likely had a good week if the majority of their speculators were ‘B’ book – virtual – traders. Survivors of last week’s dynamic price action should be aware that financial institutions do not have the best of outlooks for global central banks. This week’s coming data may help a bit, but trading could also remain rather dangerous and churn volatility.

Global Outside Influence to Give Attention:

Although Niger may seem like a world far away for most day traders, they should keep an eye on the developments of the African nation. A military coup has gotten the attention of global powers and there are threats of military intervention rattling. France, the U.S and Nigeria and other ‘Western’ leaning nations have a stake in the Niger drama, on the other side is Russia and its Wagner affiliated mercenaries. The potential for a war to to start in this landlocked northern African nation appears to be growing. A conflict in Niger could include a wide range of competing sides and create loud rhetoric and hyperbole. It could also cause uncomfortable feelings at the BRICS summit scheduled to begin on the 22nd of August in Johannesburg, South Africa.

GBP/USD One Month Chart as of 8th August 2023

Monday, 7th of July, U.K Halifax Home Price Index – this data is expected to remain rather stable, but the past three results have been negative. Mortgages are getting expensive in the U.K and the pressure added from higher interest rates is not helping. The GBP/USD could react briefly to this outcome.

Monday, 7th of July, E.U Sentix Investor Confidence – the reading is anticipated to be worse than last month’s outcome regarding investor outlook. The past three months have been negative. The E.U is certainly facing recessionary pressure. Oddly enough, a poor outcome could spur on the belief the ECB may have to become less aggressive regarding their higher interest rates. The EUR/USD may see a flurry of reactions from this report.

Tuesday, 8th of July, China Trade Balance – the results will get plenty of attention because recent economic data from the nation has been troubling. Export demand is important for China’s economy.

Tuesday, 8th of July, Germany Final Consumer Price Index – the result is expected to match the forecast of a 0.3% gain. This inflation report will be watched by EUR/USD, but if expectations are met this could create rather consolidated trading until Thursday for the currency pair.

Wednesday, 9th of July, China CPI – the inflation data from the nation will be watched by global investors. Recent statistics from China have signaled concerns about ‘deflation’. An outcome of minus -0.5% is expected. Economic issues are shadowing China, this as it remains active in global affairs.

Last week Argentina announced China helped facilitate a ‘bridge loan’ for the South American nation so it could make a repayment to the IMF. Rising economic concerns in China could start to squeeze its ‘cash power’ as it tries to gain influence globally by pumping Yuan (CNY) into international finance. China has certainly been bold and is playing a ‘long game’, because its choice of Argentina as a nation to help can certainly not expect to produce short-term financial gains.

Thursday, 10th of July, U.S CPI – Consumer Price Index results from the States will cause potentially dynamic broad market movement. Inflation is expected to match last month’s rise of 0.2% via the broad and core numbers. However, traders should note that some analysts have voiced concerns rising energy prices the past month will hit the inflation numbers, if this occurs it could spark a volatile USD. Higher Crude Oil prices combined with a streak of U.S hot weather may create an intriguing outcome. Risk management should be used by day traders who are wagering in the markets as the CPI readings are released.

Friday, 11th of July, U.K GDP – the Gross Domestic Product numbers will be important immediately for the GBP/USD. Although last month’s outcome was slightly stronger than anticipated it was still negative with a minus -0.1% reading. The growth number this time around is expected to gain 0.2% per the monthly report.

Friday, 11th of July, U.S Producer Price Index – economic numbers from the States have been mixed recently. These inflation numbers are expected to show a slight rise, if the outcome meets expectations – the broad markets may remain calm. However, if inflation is stronger than expected, the result could set off fireworks if the outcome sets off fears about the U.S Fed maintaining it hawkish rhetoric.

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The Oldest Hate: Why The Hague Needs to Convict Israel

The Oldest Hate: Why The Hague Needs to Convict Israel

Opinion: The following article is commentary and its views are solely those of the author. This article was first published the 14th of June via The Angry Demagogue.

The oldest hate is also the most frustrating hate – why is there antisemitism and why does it never end?  All the reasons to hate the Jews have been refuted by Jewish actions. We are filthy capitalists and then communists. We are separatists and then assimilationists. We are stateless and we have a state. The list goes on and on and we can come to the conclusion that there is no answer.

The late Lutheran Pastor turned Catholic Priest, Richard John Neuhaus said years ago – I paraphrase as I don’t remember the exact quite – if you don’t like Christian America, just wait until you get post-Christian America. No one can doubt that for centuries Christianity was the source of antisemitism in the European continent as Jews were the easy scapegoats to everything from the Plague to economic crashes. But with the dawn of the scientific age, Christian antisemitism lost its cache along with Christianity itself. What we are dealing with now is an antisemitism of the nihilists.

The nihilists are those anti-semites who, like the operettist Wagner and the philosophers Karl Marx and Voltaire started a trend that reached it climax with Nazi and Stalinist totalitarianism and has now made a comeback with a combination of Islamist and progressive ideologies which are all based on the glorification of violence and cruelty that we see in ISIS, Hamas, Fatah, Al-Qaeda and now manifesting itself in America’s great cities and universities. The question still remains – why do all of these seemingly contradictory ideas all converge in anti-semitism?  

The answer, it seems to me lies in exactly that one international body that was created in the wake of the actions of greatest and most horrible of anti-semitic regimes – the Nazi perpetrators of the Holocaust. The Western world – the modern Christian west, led by the United States, felt it needed laws of war and international bodies that would continue the work of the Nuremberg Trials and make sure all those who would perpetrate genocide would, eventually, be brought to justice. That these bodies have failed miserably is proven by the genocides in Rwanda and Cambodia, the mass murders going on in Sudan and other parts of Africa, the genocide, still ongoing of Sunni Muslims in Syria and the Chinese incarceration in concentration camps (and who knows what else?) of the Uyghurs. 

So why Israel? Why is Israel, why are the Jews the main enemies of the new nihilists?

The enemy is the moral code that the Bible brought into the world – a code that protected slaves from cruel behavior, a code that did not allow the rape of women captured in war, a code that limited the number of horses and wives a king could have, a code with laws of war. Maimonides, writing in the middle ages in Spain and then Egypt, has a whole section of his Code on the laws of kings and war.  Jews didn’t always follow the law and the books of Joshua and Judges are filled with difficult passages but the commandments were there, nonetheless.

Hugo Grotius, writing in the 16th and 17th century developed Just War theory based on Christian thinking and that has formed the basis of the international laws of warfare ever since. This certainly would not have happened without the Bible and the codes that followed it and this is what the nihilists hate most of all.  

Israel is at the heart of the progressive Western, radical Islamic, pan-Slavic and Communist revolt against the containment of violence, cruelty and bloodlust under the rubric of a higher moral law. Maybe it is true that man’s natural state is war, as Hobbes believed.  Maybe Heraclitus is right that “war is the father of us all and our king” and maybe as he continued, it “discloses who is godlike and who is but a man” but the Judeo-Christian tradition taught us that we need to overcome this nature and to live with a moral code that can overcome it and change what it means to be “godlike”.   

The “court” in the Hague represents that pagan and nihilistic outlook on life and the desire to return to a time where violence and cruelty is unregulated, where war can be fought without the rules that the Jews foisted onto mankind. Camille Paglia writes in her magnum oppose “Sexual Personae” that society is the “defense against nature’s power”. Without society and the moral and behavioral codes that make it up, Paglia writes, we would be” storm-tossed on the barbarous sea that is nature”.

Convicting Israel of violating the very laws it itself created will finally put an end to the “farce that is morality” according to the nihilists and return us to that “barbarous sea that is nature”. The destruction of Israel will allow the world to finally defeat that 3,000 year old code that we call the Judeo-Christian heritage that prohibits the nihilists from living as they wish. The Hague needs to convict Israel and the woke left along with radical Islam need to finish the job on the battlefield so that they can return to their beloved state of nature.

They hate the Jews now because we have provided them with the framework to be civilized and they hate civilization most of all.  

Israel will be convicted in the Hague because to find it innocent means the nihilists will be shackled to a morality that prevents them from cruelly murdering, raping and destroying as they please. It means that Hollywood will not be able to continue glorifying the dismemberment of children in their “realistic” crime dramas. It means the universities will have to teach of truth and beauty and not perpetuate the bloody ideologies it loves. It means that they will have to subordinate their beloved blood thirsty ideologies to that horrible bourgeois virtue, human kindness.

Disclaimer: the views expressed in this opinion article are solely those of the author, and not necessarily the opinions reflected by angrymetatraders.com or its associated parties.

You can follow Ira Slomowitz via The Angry Demagogue on Substack https://iraslomowitz.substack.com/

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Preventing WWIII: Part 2 – Reviving Western Deterrence

Preventing WWIII: Part 2 - Reviving Western Deterrence

Opinion: The following article is commentary and its views are solely those of the author.

Aggressive Western Action Can over-extend China and Revive Needed Deterrence.

Some cliches are just correct, in spite of their being cliches – “if you want peace, prepare for war” is one. But really it should be “if you want to avoid war, deter war”.

Therefore, it is not clear to me why there is opposition by some in the Republican party to fighting Russian aggression in Ukraine. For some, I guess it is a knee jerk reaction against Biden administration policy while for others it seems to be a general loathing of American involvement in the world. 

Each is understandable on its own but does not take into effect the appeasement of Russia will have on Western deterrence around the world – including in the Western hemisphere and the Indo-Pacific. While most Americans understand that Russian control of Ukraine threatens the main Western European countries, the key to Russian imperialism really is in the south. Historically, Russia has always tried to find a warm water port to call its own. For nearly four centuries Czarist Russia fought Ottoman Turkey so that Russia could expand its territory southward and have a warm water presence in the Mediterranean. Currently, a Ukrainian presence in the Black Sea denies Russia even the opportunity to pressure modern Turkey to abide its wishes.

A Russian victory in Ukraine would mean dominance of the Black Sea by the Russian Navy and directly challenge Turkey to appease Russian power by giving them free passage through the Dardanelles to the Mediterranean. That in itself would not be worth much to the Russians without a port in the Mediterranean, which they currently have. That they have one goes back to the disastrous decision by the Obama administration to invite Russia back into the Mideast in order to take care of Syrian chemical weapons. This came, we all remember, when the Syrians laughed at Obama and crossed his “red line” about using chemical weapons against its own people. We might also remember when then Secretary of State John Kerry (the one who was never right on a single foreign policy issue ever) who, first demanded that Syria turn over all chemical weapons in a week, then reassured them that even if we attack it will be “unbelievably small”.

In 1973-4, Henry Kissinger brilliantly took advantage of the Israeli-Arab War’s outcome with Israel’s surrounding the Egyptian 3rd Army in the south and controlling the road to Damascus in the north, by brokering a cease fire on both fronts. This led directly to the expulsion of Russia/Soviet Union from the Middle East. While Russia continued friendly ties with the murderous Assad family – first Hafez and then his son, Bashar, they did not have a military, air or naval presence there. Due to this longstanding relationship with Assad’s Syria, Obama and Kerry thought it a brilliant idea to have them come in and do the dirty work that they didn’t want to do – prevent Assad from gassing his own people. 

As Russia came in and established air and sea bases in Syria and introduced the infamous Wagner group to carry out its brutal ground operations, Russia slowly started to strengthen its position in the region. While slyly allowing Israel to attack Iranian arms shipments meant for Hezbollah while pretending to be its ally, Russia formed a close  relationship with Iran. Wagner, which fought hand in hand with Hezbollah in order to prop up the Assad regime (and attack American forces fighting ISIS) is now rumored to be training Hezbollah in the use of Russian anti-aircraft systems. 

In addition, reports last week that an Iranian Ilyushin 76 cargo jet has now landed in one of the Russian air-bases they established after Obama’s kind invitation to return to the Mideast. This plane, filled with Iranian arms destined for Hezbollah has been unable to land in regular Syrian airports or bases because Israel continuously puts them out of service. Knowing that Israel would never attack a Russian base – this is a safe haven that Russia gladly supplies. 

When free countries unite in warfare there is usually one joint goal  – that they are all united to defend freedom – that is why they fight together.  While autocratic and totalitarian regimes fight together it is usually a combination of a negative goal – disturbing or destroying the current world or regional order – as well as the goal for each power in itself. Currently, the joint goal in the Mideast (of Russia, China, Iran and North Korea) is to hurt the main ally of the US in the region – Israel, in order to weaken and embarrass the US. For Iranians, they also want Israel destroyed. For Russia, they want Israel weakened so they can replace the US as the power broker in the Mideast. For China, it is to dismantle America’s control of the flow of oil and, eventually, the replacement of the USD in the global economy with the Yuan.

Ukraine is important in this calculus because, as we said above it gives Russia complete control of the Black Sea and will pressure Turkey – whose NATO membership is uses only to its own advantage – to break permanently with the West. While the Chinese theory is that the two fronts the US is supplying arms to, Ukraine and the Mideast, are tying it down and expending its resources it would otherwise use in the Pacific, in truth, an aggressive strategy on both fronts would be to over-extend Russian and Chinese resources in order to keep China from moving on Tiawan. A credible threat of destruction or even marginalization of the Axis allies in the Mideast – including (besides the soon to be gone Hamas) Hezbollah, Shiite-Iranian proxies in Iraq and Syria, as well as Iran itself combined with a major offensive in Ukraine will tie down Axis resources and possibly prevent a Chinese blockade or attack on Taiwan.   If its two main allies need full supply and full readiness to be able to respond to credible and massive attacks by Ukraine, Israel and the US, China itself might have to expend resources to prop up its own allies. 

Add to that a major show of naval force in the Indo-Pacific by Japan, India, Australia and South Korea combined with US forces will give China the choice of destroying their own wavering economy by attacking or blockading Taiwan or in maintaining peaceful Pacific trade routes while trying to prevent the collapse of its Axis allies. 

An immediate and radical change in policy can restore Western deterrence quickly.   Re-arming Ukraine and leaving Israel to do its job without pressure to stop in Gaza and to respond forcefully in Lebanon will send a strong message. Biden brought two carrier groups to the Mideast and told Hezbollah, “don’t”. But they did.  

In spite  of that  US Secretary of Defense Austin told Israel that its response to Hezbollah aggression in the north is “provoking” them.  

And the US hesitates even against Iranian proxies. Just now, the NY Times has reported that Biden-Blinken have turned down a Pentagon plan to be more aggressive in response to Iranian attacks against US forces in Syria and Iraq for fear of “provoking Iran” (this seems to tell us that the Austin complaint from Austin to Israel is really from Blinken).  

Iran never seems to fear provoking the US.   

Israel fooled itself by thinking Hamas was deterred by its destruction of an arms factory or two (as the US is doing now in Iraq/Syria) when proper deterrence would have meant them knowing we can and will go into Gaza and destroy their underground city as Israel is doing now. Instead, media fear mongers, backed by Israeli ex-Generals on the payroll of the US progressive left (via cushy think-thank jobs) combined with policy directives by successive governments have told us and Hamas time and time again that Israel cannot destroy Hamas as the cost is too high. I don’t want to speak too early, but that seems to have been as wrong as their assurance that Hamas is deterred since they want to drink white wine in the evening overlooking the Mediterranean while watching their children play innocent video games.

It is time to stop calling for cease fires and repeating UN hypocrisy and to start being aggressive and provocative in the defense of freedom. 

Disclaimer: the views expressed in this opinion article are solely those of the author, and not necessarily the opinions reflected by angrymetatraders.com or its associated parties.

You can follow Ira Slomowitz via The Angry Demagogue on Substack https://iraslomowitz.substack.com/ 

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AMT Top Ten Miscellaneous Considerations for this Friday

AMT Top Ten Miscellaneous Considerations for this Friday

AMT Top Ten Miscellaneous Considerations 25th August 2023

10. Behavioral Sentiment: Risk adverse conditions heightened again.

9. Book: Pioneering Portfolio Management by David F. Swenson.

8. Rugby: All Blacks vs. Springboks tonight at Twickenham.

7. Federal Reserve: Jackson Hole Symposium and Speeches.

6. Travel Tips: Stay away from Russian corporate jets with Wagner members flying aboard.

5. South Africa: What’s next after BRICS Summit, an end to loadshedding?

4. Cryptocurrencies: Bitcoin, Binance coin remain under pressure.

3. Germany data: Coming ifo Business Climate and GDP data.

2. U.S data: Yesterday’s mixed Durable Goods numbers.

1. USD: Another burst of strength yesterday.