"Everything Is Moving"

What is the Fed going to do?

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Our View

Remember how I keep saying 'everything' is moving? I have been trying to explain the changes I have been seeing, but this story does a great job touching on everything.

On the geopolitical front, let's face it: Things are not going well around the globe. Iran warned the US not to assist the Israelis when they strike back for the airstrike that hit the Iranian Embassy Compound in Syria. One-on-one the US would win a war with Iran, and more than likely Israel could take care of Hezbollah but the cost would be high with the US already providing arms to Ukraine, Israel, Philippines, and Taiwan. 

Currently, the US is doing a joint military drill with Australia, Japan, and the Philippines. The planned “maritime cooperative activity” in the Philippines’ exclusive economic zone involves naval and air force units and just yesterday, the Chinese People's Liberation Army (PLA) launched a joint naval and air combat patrol in the South China Sea in response. 

Nigerian spokesperson Insa Garba Saidou put it in blunter terms: “The American bases and civilian personnel cannot stay on Nigerian soil any longer." While all this is going on, Russia is trying to claim ownership of the Arctic Circle or part of it…

I said this years ago that the US can no longer be the global sheriff and this is just a few of our problems. I am very pro-US, but our sphere of influence has shrunk yet the US responsibilities have increased.  

I say it all the time: I'm just a street kid who learned about the world on the CME floor, but this is not heading in the right direction and I can't see how the US won't be drawn into one or more military conflicts at once. 

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