$CWX – What a difference a day makes

Corrections Corporation of American back in the growth business?

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FIRST THEY CAME

First they came …” is a famous statement and provocative poem written by Pastor Martin Niemöller (1892–1984) about the cowardice of German intellectuals following the Nazis‘ rise to power and subsequent purging of their chosen targets, group after group. Many variations and adaptations in the spirit of the original have been published in the English language. It deals with themes of persecution, guilt and responsibility.

The best-known versions of the speech are the poems that began circulating by the 1950s.[1] The United States Holocaust Memorial Museum quotes the following text as one of the many poetic versions of the speech:[2]

First they came for the Socialists, and I did not speak out—
Because I was not a Socialist.Then they came for the Trade Unionists, and I did not speak out—
Because I was not a Trade Unionist.

Then they came for the Jews, and I did not speak out—
Because I was not a Jew.

Then they came for me—and there was no one left to speak for me.

 

 

 

ELECTION REFLECTIONS – Bush, Obama, Gold, Oil and the US Dollar

The late great Ed Hart of the old Financial News Network used to say in the financial markets “we will know everything in the fullness of time.”  Well, the “fullness of time” has never been more pointed than looking back at inflection points in the U.S. Dollar as it correlates with Gold and Oil and conveniently with the administrations of Presidents..

Clearly, (on the chart below) the Bush administration was good for gold and oil (any surprise there?) and horrible for the US dollar (currency being a vote by the world on one’s country every day).

Bush’s 2002 State of Union “Axis of Evil” was to the day the exact last high for the dollar and the launch of the commodities as if the whole world heard those words and bolted the U.S. currency in alarm.

By contrast, the election of Barack Obama stopped the dollar’s decline. On a dime, so to speak… And ended the extreme uncertainties of the Mideast oil supplies, crashing the price from its Bush era $140 highs to around $50 a barrel now.

That chop-chop in the dollar during subsequent years likely was a result of the political conflicts between the U.S. President and an obstructionist Republican Congress (to the point of threatening a default on US debt), and its strength now reflects Obama’s ability to do what he wants (remarkably and ironically a benefit of being a lame duck).

One suspects the current oil drop, not only is a result of the strong Obama dollar but also is in anticipation of the the Iran nuclear deal.  With international sanctions being lifted, Iran’s oil will increase supply worldwide.

History, history – in other words, as Ed Hard would say, the fullness of time.

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