Real Wealth #330 10/13/2015 10:26 AM EDT
Washington Chaos, Widening War in the Middle-East Terror Attacks in Russia and Turkey Spell Higher Oil and Precious Metals Prices.
ISIS Now Targeting Russia -- Danger Washington Shutdown Less Likely -- GOP '16 Electoral Apocalypse Increasingly Likely
In the last issue Real Wealth I reviewed several reasons behind Russian President Vladimir Putin's decision to export military forces to Syria. I believe in part, the decision is a tactic to force Saudi Arabia and the oil Kingdom's of OPEC to reduce its oil output so to assure a rise in the price of oil back to as much as $75 level.
I also pointed there's real danger that Russian decision to get involved in the increasingly complex war in Syria will back fire. Take on ISIS on the desert battle-fields of Syria is already making Russia a bigger target of ISIS terrorism. Headlines over this past weekend are all reported an attempted ISIS bombing in Moscow ...
Russian Police Foil ISIS Bomb Plot: Full scale war against ISIS with 50,000 Russian Troops?
The 60 minutes Steve Croft interview of President Obama on Sunday challenged him with the narrative being offered by critics of current U.S Syrian policy that Putin has become so strong that he can force his way into the Syrian conflict at the detriment of U.S. power, prestige and influence throughout the Middle-East -- does not match the reality.
The Russian economy is in FREE-FALL and the deepening recession, threatens to become an all out economic depression -- if crude oil prices don't start climbing. Syria could well become a repeat of its Afghanistan nightmare. A huge quagmire that will drain the Russian bear of economic power and military credibility. Headlines over the weekend confirm the economic strain Russia now finds itself in thanks to lower oil prices and Western sanctions that are not likely to be lifted - even in the coming year.
Russian Inflation over 15%
Russia: No Hope of Lifting Sanctions in '16
The chaos in Washington thanks to Speak Boehner's decision to retire continues. The sitting Speaker wanted to avoid his allies in Congress from becoming Primary Targets by far right Tea-Party candidates in next year's election.
Many market analysts and gurus are warning of a government shutdown in December and impossible to escape budget impasse. While it's true the chaos in the Congress could create a short term down draft in stock prices, but keep in mind as each day passes Speaker Boehner gains the leverage to pass a bipartisan debt ceiling and continuing resolution through the end of '16. That would be bullish for the market, once accomplished.
GOP Speaker Crises: As each day passes, it becomes increasingly likely Boehner will raise the debt ceiling through '17
One of my longest standing attorney's has a home in China and reports that fear of a Chinese recession is over hyped. He reports consumers in China unperturbed by infrastructure slowdown. While imports were down 18%, this however may be more tied to oil imports in the rear view mirror. My friends reports about a healthy Chinese consumer are confirmed in part by at least one major guru...
Cramer Says: China and Energy Stocks Bottomed
The chances of far-right, war ready GOP Presidential Ticket are growing as the POTUS field thins during the next few months now that big money at play is find its way to the finalists. This will increase the chance of Rubio being on the '16 GOP Ticket, either with Trump or more likely Senator Ted Cruz,. A hard right war ticket like this may win the GOP primary but it will guarantee a general election massacre for the GOP along the lines of the '64 Goldwater debacle.
A shellacking of the GOP like the one that took place 49+ years ago would force a bi-partisan government between the Dems and right to center Republican's in '17 and '18 and would be "rocket-fuel" for the U.S. economy and U.S. Stocks...
Sheldon Adelson To Shower Senator Marco Rubio with 10's of Millions for GOP POTUS Primary Fight
Gold, Silver and Platinum are all climbing!
The Chaos in Washington, expanding war in Iraq and Syria, and the largest terror attack in modern Turkey's history are helping to light a fire under precious metals prices. Throw in the massive quantitative easing taking place around the world outside the United States and case can be made for $1500 gold by the end of 2015.
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