Archive - Mar 1, 2014

The map below is keeping an accurate running update of all the most recent developments in the staggered Russian invasion of the Ukraine.

Curious how Ukraine, which with its population of 44 million and size of 603,628 square km makes it the largest single country entirely in Europe, stacks up against Russia? The following infographic should answer some questions regarding the (im)balance of power.

To be perfectly honest (pun most definitely intended) the reason we tolerate lies from others is because we want them to tolerate our lies. What goes around (hopefully) comes around, at least when it comes to lying.

As the West Wing tweeted earlier, the White House released this photo of president Obama on the phone with Russian president Putin. Because there is always a professional photographer handy when the fate of a nation is on the line, so to speak.

There’s good propaganda and bad propaganda. Bad propaganda is generally crude, amateurish Judy Miller “mobile weapons lab-type” nonsense that figures that people are so stupid they’ll believe anything that appears in “the paper of record.” Good propaganda, on the other hand, uses factual, sometimes documented material in a coordinated campaign with the other major media to cobble-together a narrative that is credible, but false. The so called Fed’s transcripts, which were released last week, fall into the latter category... But while the conversations between the members are accurately recorded, they don’t tell the gist of the story or provide the context that’s needed to grasp the bigger picture. Instead, they’re used to portray the members of the Fed as affable, well-meaning bunglers who did the best they could in ‘very trying circumstances’. While this is effective propaganda, it’s basically a lie, mainly because it diverts attention from the Fed’s role in crashing the financial system, preventing the remedies that were needed from being implemented (nationalizing the giant Wall Street banks), and coercing Congress into approving gigantic, economy-killing bailouts which shifted trillions of dollars to insolvent financial institutions that should have been euthanized.  What I’m saying is that the Fed’s transcripts are, perhaps, the greatest propaganda coup of our time.

All the latest major headlines on the Ukraine crisis.

The was a time when everyone loved making fun of GOP vice presidential canidate Sarah Palin. It's her turn to get the final laugh.

"Most everyone's mad here..."

"On the initiative of the US, a phone call took place between Vladimir Putin and the President of the US, Barack Obama. Under discussion were the various aspects of the extraordinary situation in Ukraine. In response to the concern expressed by Barack Obama regarding the possible use of Russian armed forces in the Ukraine, Vladimir Putin drew attention attention to the provocative, criminal acts of the ultranationalist elements, in effect encouraged by the present authorities in Kiev. The Russian president stressed the existence of real threats to the lives and well-being of Russian citizens and numerous compatriots located in the Ukraine. Vladimir Putin underscored that should the violence spread further to the eastern regions of the Ukraine and the Crimea, Russia reserves the right to protect its interests and the Russian-speaking population living there."

In a stunning 24 hours, it now appears that Russia and the Ukraine are one formal announcement away from a state of war. From moments ago, as reported by Bloomberg:

• UKRAINE ACTING PRESIDENT PUTS ALL FORCES ON FULL COMBAT ALERT

And this, as reported by the NYT, virtually assures the escalation to a hot war, as some provocation, somewhere will certainly take place: "a Ukrainian military official in Crimea said Ukrainian soldiers had been told to “open fire” if they came under attack by Russia troops or others."

A few days ago, we reported that, seemingly out of the blue, the city of Rome was on the verge of a "Detroit-style bankruptcy." " And just as expected, yesterday Rome was bailed out. What is certain is that this year will not be the last one Rome is bailed out either. In fact, it will continue getting rescued for years to come because contrary to the propaganda, the Italian economy continues to get worse with every passing month, yields on Italian bonds notwithstanding. Ansa reports that in January the Italian unemployment rate rose to a record 12.9%, and that "reducing Italy's "shocking" rate of unemployment must be the government's highest priority, Premier Matteo Renzi said Friday." How, by pretending everything is ok, kicking the Roman can and hoping things improve by bailing out anyone that is insolvent? Putting 2013 in perspective, this is the year when according to national statistical agency Istat, some 478,000 jobs were lost in Italy in 2013, the worst year since the global financial crisis of 2008-2009, with an average annual jobless rate of 12.2% last year.

Russian Ambassador has been summoned to the Foreign Office over #Ukraine

— William Hague (@WilliamJHague) March 1, 2014

Even as Russia has officially deployed its military to the Ukraine, its unofficial involvement in The Crimean was well known for days. A much more notable development would be if protesters in the pro-Russian eastern part of the country were to seize control of the second largest city in the Ukraine, Kharkiv, located just miles from the Russian border as this would quickly give Russia a foothold into the east of the nation with the tactical escalation abilities such a takeover would entail. Which is why the following clip of pro-Russian protesters storming the city administration in Kharkiv is of importance: should Ukraine lose control of the city, or is forced to use troops against the people, it would be just the pretext Russia needs to "defend" citizens in this part of the country, the same argument it used for military intervention in the Crimean.

All the dominoes are tumbling now. Moments after the Russian upper house of parliament approved the decision to use Russian troops in the Ukraine as expected, Ukraine's acting president called an emergency meeting of security chiefs according to his spokeswoman. Oleksander Turchinov summoned his Security Council after Russian President Vladimir Putin sought parliamentary approval to deploy Russian forces in the Ukrainian region of Crimea. At this point the biggest and perhaps final wildcard is whether NATO does or does not get involved. If it does, and if Russia does not back off - which it has clearly telegraphed it won't - futures may be looking at a limit down open on Sunday.

For those who follow folksy Uncle Warren, here is the breakdown of Berkshire's Q4 and full year results, as well as his latest letter to investors.