US Iran Tense at Hormuz Strait, Fed Not Raising Rates, TPP Bad Deal, Jade Helm Laughs
by Greg Hunter
Looks like, for once the U.S. and Iranian Navies may be inching towards confrontation. It was announced that the U.S. Navy will be escorting U.S. flagged ships through the Strait of Hormuz. This came after an erroneous report that the Iranians had boarded a U.S. flagged ship. The Hormuz has 35% of the world’s seaborne oil shipments. The U.S. Navy intercepted some Iranian cargo ships last week heading to Yemen. They turned around, and now the U.S. carrier group has also left the area. The Saudis are fighting to remove terrorists that are partial to Iran. There is no end in sight with the fighting, and the Saudis are not allowing flights to land to resupply the Houthi (Shia) rebels. There is a Sunni coalition that is enforcing an air and sea blockade.
The first quarter GDP numbers are in, and they were dismal. As I have said, many times, there is no recovery. The first quarter so-called growth came in at a paltry .2% growth. This is not growth. If you factor in any sort of inflation, then you really have a contracting economy, not a growing one. If the Fed is not going to increase rates, it may be forced to inject another round of QE, or money printing? We will see as the year unfolds, but I am not seeing a rate increase anytime soon, and that is what the Fed basically said at its meeting this week.