Iran

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Iran's Quiet for Now - Here's How to Handle What Comes Next

By , Chief Investment Strategist, Money Map Report -

Like millions of people around the world, I woke up to news that a U.S. airstrike had taken out Iranian Major General Qassem Soleimani last Friday.

My thoughts immediately turned to your money.

The world's financial markets have been relatively calm in the days since, but I don't expect that to remain the situation for long.

Iran will strike back.

The only question is whether or not YOU and your money will be ready.

Here are three critical moves you need to make right now...

The Iran Deal Is Dead; Here's What That Means for Crude Oil Prices

By , Global Energy Strategist, Oil & Energy Investor • @KentMoors_OEI -

Iran Deal

Several months ago, U.S. President Donald Trump delivered an ultimatum on the Iranian nuclear deal:

"Either fix the deal's disastrous flaws, or the United States will withdraw."

Much of my time over the past week has been devoted to assessing the fallout from this widely expected White House decision.

And now, as I expected, the White House made good on that threat. The "other shoe" has dropped.

Despite clear support from French President Emmanuel Macron, German Chancellor Angela Merkel, UK Prime Minister Theresa May, and the European Union to continue the Joint Comprehensive Plan of Action (JCPOA), popularly known as the "Iran nuclear deal," and offset a Trump veto, the deal, as it existed on Monday, is now dead.

The stakes are high, but European positions are not enough.

So let me show you how I think this will ultimately play out - and break down exactly how to play crude oil in the wake of this thing...

Oil Prices Rise as Yemen Burns

By , Money Morning -

The crisis in Yemen has provided a stark reminder of the immediate impact geopolitical events can have on oil prices.

In the wake of the Saudi-led airstrikes, West Texas Intermediate (WTI) jumped over 6% in less than 18 hours. Meanwhile, Brent climbed more than 5%.

Now Iran is warning of bloodshed as the crisis takes a turn for the worse. According to Dr. Kent Moors, this situation has "all the hallmarks of a bloodbath just waiting to happen."

Kent was asked to provide his timely analysis on CNBC's Closing Bell to discuss the impact this massive crisis will have on oil prices.

DON’T BE SO ARROGANT, MR. PRESIDENT

By , Chief Investment Strategist, Money Map Report -

Empires have come and gone. Some lasted a blink of an eye and some millennia.
The question is, after 9/11, the rise of China and a great financial crisis, where does the U.S. empire stack up to its predecessors?
Well, it seems the one commonality they all have is the point when their might was undermined by sloth and greed. And entitlements: free bread and circuses. For some it took years, others centuries.
Here, in a compelling and unique address, is what Romulus Augustus, the last emperor of the Roman Empire, might say to President Obama now about how to keep America great.
Read on and share with family and friends...

The Latest Obama Outrage: the Family's $100 Million Vacation

By , Money Morning -

How much do you spend on your summer vacation? American households usually spend about $1,200 per person on summer vacations, according to a recent American Express survey.

Presidents spend more on their vacations than you or I. They have to. Air Force One and security does cost more than loading the Honda and heading to the beach.

Here's how much some recent presidents spent our tax dollars on vacation.

Ronald Reagan spent most of his free time at his California ranch. Taxpayers covered the cost of approximately $8 million for presidential travel during Reagan's first six years in office, according to the Los Angeles Times. That amounts to $1.3 million a year.

For George Bush the cost of flying Air Force One to his Texas ranch was approximately $56,800 per trip, for each of the 180 trips according to Media Matters. President Bush spent Christmas during his two terms at the White House so his staff and secret service could spend the holiday with their family, according to Conservative Byte.

Now Obama plans to blow away all previous presidents' leisure travel costs on our dime with a better than Disney World extravaganza trip to Africa.

However Obama had to cancel the safari because of the need to fill the surrounding jungle with snipers to guard the president from wild animals!

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Why The Fiscal Cliff "Deal" is Spelled P-O-R-K

By , Chief Investment Strategist, Money Map Report -

Behind the scenes of the Fiscal Cliff debate, there was plenty of f-bombing, poison pilling, and grandstanding leading up to the deal - and that was before the members of Congress and the Senate actually got serious with their usual ultimatums, followed by earnest- looking sound bites and posturing. But what gets me really riled up is the amount of "pork" contained in the bill...

Why Japan's "Lost Decades" Are Headed to America in 2016

By , Chief Investment Strategist, Money Map Report -

It's only been a little more than a week since Shinzo Abe won election as Japan's latest Prime Minister in a landslide-election victory and the pundits are already lining up telling investors to "buy Japan" because it's "dirt cheap."

The hope is that Abe's promises of fresh stimulus, unlimited spending and placing a priority on domestic infrastructure will be the elixir that restores Japan's global muscle.

As a veteran global trader who actually lives in Japan part time each year, and who has for the last 20+ years, let me make a counterpoint with particular force - don't fall for it.

I've heard this mantra eight times since Japan's market collapsed in 1990 - each time a new stimulus plan was launched - and six times since 2006 as each of the six former "newly elected" Prime Ministers came to power.

The bottom line: The Nikkei is still down 73.89% from its December 29, 1989 peak. That means it's going to have to rebound a staggering 283% just to break even.

Now here's the thing. What's happening in Japan is not "someone else's" problem. Nor is it something you should gloss over.

In fact, the pain Japan continues to suffer should scare the hell out of you.

And here's why ...

The so-called "Lost Decade" that's now more than 20 years long in Japan is a portrait of precisely what's to come for us here in the United States.

Perhaps not for a few years yet, but it will happen just as we have already followed in Japan's footsteps with a "lost decade" of our own.

The parallels are staggering.

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Iran's Currency Collapse Has All the Markings of a Full-Blown Crisis

By , Global Energy Strategist, Oil & Energy Investor • @KentMoors_OEI -

Matters are beginning to come to a head in Iran.

So far, the impact of Western sanctions - an EU embargo of oil purchases, European and U.S. restrictions on Tehran's access to international banking, and a new move to intensify the trading restrictions even further - have had a devastating impact.

Iran's currency, the rial, has collapsed.

Riots have begun. Its government has rapidly lost its authority. And the Iranian economy is unraveling.

This has all the markings of a full-blown crisis.

It will have an uncertain impact on the region and the wider oil market. This could get very unpredictable and very nasty.

Let me explain...

Sanctions Paralyze Iran's Economy

Indications are emerging from several quarters that the current sanctions regime has dealt a major blow to the Iranian currency. The developments are prompting foreign initiatives to paralyze the regime in Tehran.

"The current perception is that the sanctions may have to be increased before Tehran will show clear signs of relenting," a source in the EU Energy Commissioner's office told me on October 6.

Still, it remains too early to determine how far EU members are prepared to go in strengthening anti-trade restrictions.

Nonetheless, several policy sources in Brussels, London, and Paris, confirmed last week that a rising consensus believes something additional is warranted.

A complete EU embargo of Iranian oil imports took effect on July 1. That action had widely been expected to put upward pressure on Brent prices in London. While some of that pressure has materialized, continuing demand concerns from the ongoing credit crisis and sluggish employment data have dampened the impact.

Still, a widening of the rift with Iran, coupled with the deteriorating situation on the Syrian-Turkish border, is certain to bring the problem to center stage.

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The Challenge in the Persian Gulf with Iran Looms Large

By , Global Energy Strategist, Oil & Energy Investor • @KentMoors_OEI -

My meetings and media interviews continue here in London. But this morning I want to fill you in on one of the more interesting briefings I have ever held.

Last night, Marina and I had the distinct pleasure of dining with Khaled Duwaisan, Kuwait's Ambassador to the Court of St. James and the longest-serving foreign emissary in London.

His Excellency is a very gracious man, well respected by his peers, and, after more than two decades in London, certainly somebody who has seen much come and go in his time.

Our discussions centered on the situation presented by Iran in the Persian Gulf and the current crisis there.

Also attending the dinner and long discussion were the ambassadors from every other Gulf Coordination Council nation in the region and the legal representative of the Iranians (who currently have no official diplomatic connection with the United Kingdom).

Now, as with such sessions, all of the conversations were held under Chatham House rules. That means, while general themes can be discussed, all participants agree not to connect named people with specific positions in commenting on the meeting afterwards.

This was one of the more memorable sessions I have ever had. It was striking how articulately and passionately the delegates addressed the subject.

The overwhelming response to my comments could be summarized in two ways: the rejection of a nuclear-armed Iran and a strong opinion that the region must settle its affairs on its own.

The first conclusion is certainly shared by the West, but the second may well be difficult to achieve in practice. The prospect of Iran with nuclear capability is hardly a matter Washington, or London, or Brussels will allow the region to decide on its own.

The gathering certainly understood that. These are, after all, seasoned diplomats well-schooled in the protocols and realities of international politics. But they are also experienced in the affairs of a region with the longest and most intricate negotiating traditions on the face of the earth.

They also have a perspective honed from several thousand years of history, tradition, and conflict. There was present a quality I rarely experience in my international meetings -- patience.

However, one other matter quickly surfaced that was unanimously viewed as a major element in the ongoing conflict. The assembled representatives spoke about it candidly and directly.

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