United States Supplanted by China’s Thirst for Oil
They find a surprisingly large effect. As best they can tell, T-bill interest rates increased about 60 basis points after the first default and remained elevated for at least several months thereafter. A simple way to see that is to look at daily changes in T-bill yields: T-bill rates spiked upwards four times in the months around the default. In November 1978, Henry Dr. Doom Kaufman predicted that interest rates would rise. They did. Turn-of-the-year cash management disrupted rates as 1978 became 1979. And rates spiked and fell in October 1979 when Paul Volcker announced that the Fed would target monetary aggregates rather than interest rates (the Saturday night special). The fourth big move was the day of the first default, when T-bill rates rose almost 0.6 percentage points (i.e., 60 basis points).Theres no indication this increase reversed in the days that followed (the vertical line on the chart is just a marker for the day of default). Indeed, using more sophisticated means, including comparing T-bill rates to interest on commercial paper, the authors conclude that default led to a persistent increase in T-bill rates and, therefore, higher borrowing costs for the federal government. The financial world has changed dramatically in the intervening decades.
Actually, the United States Has Defaulted Before
While the recent cases in Arizona are officially unconfirmed, the patients told physicians that they had taken the drug, according to a doctor at the Banner Poison Control and Drug Information Center in Phoenix. Desomorphine, however, is not why krokodil is so dangerous. About 10 years ago, Russians apparently discovered how to synthesize desomorphine at home using commercially available ingredients including red phosphorus, which they reportedly glean from the sides of matchboxes, and codeine, which until last year was available over the counter in Russia. The resulting substance contains several caustic byproducts. When you use the krokodil . . . really what youre doing is injecting red phosphorus and solvents into your body, said Matt Zuckerman, a toxicologist at the University of Massachusetts Medical School. With regular use, those toxins can rot flesh, causing abscesses and gangrene. A recent U.N. report attributed krokodils emergence to a heroin shortage in Russia.
The twice-weekly show can be viewed on Tuesdays and Thursdays. It can also be found on Twitter, along with our extended coverage of the energy and materials sectors, @TMFEnergy . The United States appears to be losing its status as the world’s top oil importer, thanks to the colossal turnaround in crude oil production caused by hydraulic fracturing and horizontal drilling techniques. While China’s 6.3 million barrels per day of crude oil imports are just slightly higher than the United States 6.1 million per day, the trajectory of the two countries’ crude consumption varies significantly. The United States could be the world’s largest crude oil producer by the end of the decade while oil demand drops as fuel efficient cars takeover our highways. Meanwhile, China is in the early stages of unconventional shale exploration, and with a growing middle class, fuel consumption is set to rise precipitously. See more on this topic in the following video. Stocks to buy to play the United States energy bonanza Record oil and natural gas production is revolutionizing the United States’ energy position. Finding the right plays while historic amounts of capital expenditures are flooding the industry willpad your investment nest egg. For this reason, The Motley Fool is offering a comprehensive look at three energy companies set to soar during this transformation in the energy industry. To find out which three companies are spreading their wings, check out the special free report, ” 3 Stocks for the American Energy Bonanza .” Don’t miss out on this timely opportunity; click here to access your report — it’s absolutely free. Alison Southwick and Taylor Muckerman have no position in any stocks mentioned. Joel South owns shares of Ford. The Motley Fool recommends and owns shares of Ford.
United States and Afghanistan; hope of an agreement
officials said they wanted the pact finalized by the end of October and Kerry’s visit was seen as a last-ditch effort to push the deal through before the deadline. The United States is insisting it cannot agree to a deal unless it is granted the right to try US citizens who break the law in Afghanistan at home in the United States. A senior US administration official said the sides had agreed on language in the draft deal that covers the issue of immunity and “that can be put to his Loya Jirga for their consideration.” “We need to say that if the issue of jurisdiction cannot be resolved, then unfortunately there cannot be a bilateral security agreement,” Kerry told a news conference. Karzai said the talks had focused on protecting Afghan sovereignty and that major differences had been resolved, including a US request to run independent counter-terrorism missions on Afghan territory. Such operations carried out by the United States have long infuriated the Afghan president, who had been demanding Washington agree to share intelligence instead. Karzai said the U.S. snatching of a senior Pakistani Taliban commander was an example of the kind of action that Afghanistan wanted to avoid. “This is an issue that we have raised in earnest with the United States in the past few days as we have all previous occasions of such arrests in which the Afghan laws were disregarded,” Karzai said, referring to the capture of commander Latif Mehsud. “Therefore our discussion today in particular has been focused on making sure that through the bilateral security agreement such violations are not repeated.” Kerry attributed the complaint to a misunderstanding. “We followed the normal procedures that the United States follows, we did what we are supposed to do,” he said. In view of the negotiations, which have taken place between the two countries, following are some observations: * Agreement on discussion of issues that effect the process of reconciliation in Afghanistan is a positive signal. * Agreement on the need to further consider steps for resolution of differences is a welcome development. Understanding between the two countries is primary to establishment of a framework for peace and stability in Afghanistan. The international community is closely watching what transpires as a result of these efforts. * The United States will want its military troops to have legal protection through immunity by the Afghan law.