The first sitting this year of the Federal Open Market Committee (FOMC) of the US Federal Reserve came off with no sensations. This may be for the better – because the last thing jittery times in world economics and finance need right now is shrill announcements.
The rules of the game for market players are simple – when everyone is selling, you should buy – and sell, when everyone else is buying. And most of all – never give in to the herd instinct, and keep looking ahead. This kind of market wisdom is worth heeding for Russian-American economic relations right now, too.
TTIP, which is currently being negotiated between the EU and the US can become reality in 2016. It is not a classical free trade agreement, so what's its true purpose? One of the most common ideas is that TTIP will help to preserve the domination of the West (the US and the EU) and its democratic values in the 21 century, despite the rise of China.
The US is waging an economic war today, aided by its “strategic partners” NATO and the EU, and its intended end-game is glaringly clear – to establish a New World Order, based on the US dollar, and laws and rules laid down uniquely by Washington, and not by New York (the UN) or by Brussels (NATO).
On January 22 the Head of the European Central Bank, Mario Draghi announced the European program of Quantitative Easing. QE, in its Eurozone guise differed from the QE which was formally completed in the USA in October of 2014, although the significance of these events was similar.
The American oil lobby agreed to lift the ban on oil exports, which was in force for 40 years. Yet, it's unlikely that the Senate's decision will have any impact on oil prices. Among others, the winning argument was the necessity to confront Russia, which uses energy as a tool for foreign policy. Why do Americans need export?
In an instant, 33% Oasis Petroleum's oil stocks will disappear from its books. Chesapeake Energy loses 45% of its oil reserves, which is 1,1 billion barrels. Bill Barrett will lose up to 40% of the declared reserves. And this is only the beginning of a magic disappearance.
The meltdown in the high-yield bonds market had to inevitably hit the US bonds market. Investment-grade bonds (LQD-ETF and similar bonds) collapsed to their lowest levels for two years on Monday. The problems kicked off when Third Avenue Management refused investors permission to take their money out of their bankrupt unit trust fund.
By the end of the week the US Congress may defy Barack Obama's wishes, and lift the embargo on the export of crude oil, that has been in place for the last 40 years. Yet experts don't expect any flurry of activity – the US has no interest in upping oil production, due to current rock-bottom prices.
Amid continuous shootings in the US, the country is arming intensely. After each mass shooting, including the latest San Bernardino attack, President Obama claims that the authorities should make it harder for a potential killer to acquire weapons. The American firearms manufacturer Smith & Wesson has tripled its profits in the last quarter.