Eveyone seems to be completely focused on the terrorism activity and potential for more coming from various sources and conditions. While everyone has their eye on that ball, and with justification, the financial situation has definitely taken a turn for the worse today!
A decent sized junk bond fund froze redemptions today. This is a fund with over 700 million in customer money and now no one can get to their dough. Why? Well appears that to meet current redemption requests the fund would have to ‘fire sale’ bonds to meet them. Thus, the entire fund would suffer, or so they logic goes. Remember junk bonds are high risk and now we see that even junk bond funds can be extremely high risk, at least if you want to access your money.
This is significant folks. There is a ton, trillions, of dollars in bonds, bond funds and interest rate derivatives (especially high risk) and should interest rates go up – which the FED is promising – you could very likely see a tsunami of bond fund redemptions and not just in the junk class. When rates go up the value of the bonds declines…so if an investor wants to avoid punitive losses they would sell – right? Well that might not be as easy as you would think and todays actions by just one fund paves the way for a catastrophic event to unfold. Kind of like someone yelling fire in a theater and there is only one exit…not many get out and the rest burn!
Terrorism, the violent kind, can kill tens if not hundreds at once – a truly terrible thing and sad. Another financial crisis could undo our system and indeed bleed over into the entire world at large. Gridlock and panic would ensue with no one able to get to their money. Makes gold and cash look pretty enticing doesn’t it?
Let’s see if the financial monkeys can keep a lid on this deal…stay tuned as this develops.
Seems that the U.S. and NATO ight be in a tight spot here. The MSN this morning is highlighting the Montenegro NATO invitation and the ‘evidence’ that Russia is saying it has exposing the sale of ISIS oil through Turkey. Of course, Russia isn’t happy about the NATO invite and the ‘West’ isn’t happy about the evidence Russia is saying it has on the oil sales. As you can see there is every reason to belive that the bellicose nature of the exchanges is not going to end anytime soon – short of a miracle.
Personally, ISIS is selling oil and that is a fact. What the powers that be don’t want us to know is how and who are executing these sales. The why we might know but the important pieces are the who and how. The money has to go into some bank account somewhere wouldn’t it? If the money trail is followed and I am betting that everyone, apart from the commoners, knows full well the real story.
As one can imagine there is more to this story than meets the eye.
After the Paris attacks and the Turkey – Russia jet incident the rhetoric has calmed somewhat at least according to MSM. I personally believe there is a lot going on behind the scenes that the powers that be don’t want us to know about, as always!
Putin has place economic sanctions on Turkey and claims they are aiding ISIS by buying oil from them, Pres. Obama warns Russia on becoming involved in a conflict in Mid East/Syria comparing it to the Russian foray in Afghanistan as he commits more troops to the cause!
We have been in Afghanistan for what seems like forever, losing precious lives and treasure in that fight with no end in sight, at least in terms of some type of victory. Plus, we have been involved in Iraq for over a decade and no end in sight there either with the new addition of ISIS.
On a by note, i just wonder who are the parties/party involved in the buying and selling of ISIS oil? That is not an insignificant amount of oil and someone is buying and reselling at a handsome profit I would think. Those revenues can keep this conflict going for years I would think.
I don’t know about you but does it seem like the ‘news’ adds up here? Think about it and let us know!
As Turkey starts to try to communicate with Russia, asking for a meeting, it remains to be seen if the ‘incident’ of downing the Russian jet, doesn’t set off a string of unintended consequences.
I am in agreement with an article I read that points out that the real winner in any divisiveness amongst those who claim to be on the offensive against them is ISIS itself. Before this incident there ‘appeared’ to be some sort of unity, at least as much as one could expect given the rhetoric of the past several weeks. Now the tone has most definitely changed, if what is being reported by just about every MSM and alternative news outlet is even remotely on track.
Everyone has an opinion. What is yours? This post will also appear on the facebook page, perhaps you want to express it there. I think we all need to share our perspectives on this one.
Have a great holiday weekend!
Happy Thanksgiving! I hope everyone is enjoying the day!
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The situation in the Middle East seems to be getting out of hand. If it doesn’t end up an all out conflict between NATO and Russia I will be happily surprised. The saber rattling continues with Russia setting up ‘defensive’ forces (missiles) in the Baltic Sea between Ukraine and Turkey. I fully expect someone to make a grave error that will lead to all out war and this one, with all the modern weaponry will be devastating.
The possibility that this will spread is also likely, how far is anyone’s best guess. Europe is already on ‘war time footing’ in response to the latest ISIS attack. In the news last night here in the U.S. was a warm up for what is to come–most unfortunately. Again, I want to be happily surprised should nothing happen and the entire situation deescalates!!! It is time to pay attention!!! Close attention to what is happening in the world. This is very serious folks!
I pray for peace in my lifetime. I hope my children live through an era of no wars–Any where!!
I have a question: If ISIS is a radical islamic offshoot then they would be full of hate for Israelis yet why haven’t they attacked the Israeli pipeline that runs right through their ‘Caliphate’? See the map below of the pathway for this pipeline. Wouldn’t that make strategic sense, especially if your goal is to start Armeggedon, to attack and disrupt oil/energy to Israel? That would certainly make things a bit more compicated.
Post Paris the talking heads are at it in a big way, calling for 10,000 or more troops to be on the ground in Iraq/Syria. Everyone fully expects France to invoke NATO article 5 which could lead to formal declaration of war on ISIS by members. This would be a first since ISIS is a ‘terrorist organization’ and claims to have a caliphate but is NOT a nation state. We will see how this plays out.
Much care has to be taken here as to not drag every Muslim country in the world into the conflict. It is the largest and fastest growing religion and ISIS is not representative of true Islam, or Muslims. In my opinion, we have a bunch of blood thirsty pirates whose objective is total anarchy apparently and most importantly wealth. Their self stated goal is to bring on Armageddon and let it happen in Iraq.
This is a hornets nest opened by previous administrations and their cronies and now that the proverbial Gorilla is out of the cage, no one seems to have a reasonable plan on how to put it back! Unintended consequences are playing out before our very eyes, assuming these consequences were unintended at all (I am somewhat distrustful of he PTBs)! It is for certain that the powers that Be want to escalate this conflict. We have slow growth in the world economy and what better way to give it a good jump start? History tends to repeat itself over and over again.
Check out this article about the Wikipedia coverage of the Paris attacks, something is definitely odd don’t you think?
After yesterday’s attacks in Paris a group of frenchmen took matters into their own hands and set fire to a refugee camp housing people from Syria and Africa. See article here