Archipelago

China Has No Legal Claim to Most of South China Sea, UN Tribunal Finds

In a widely anticipated, purely symbolic decision, just over an hour ago a UN tribunal, the Permanent Court of Arbitration in The Hague, ruled unanimously in favour of the Philippines in its case against China’s extensive claims in the South China Sea. It found that China’s claim to historic rights in most of the South China Sea has no legal basis, dealing a setback to Beijing which, as the WSJ adds, the U.S. fears could intensify Chinese efforts to establish its control by force.

Yesterday's Dystopian Fiction Is Today's New World Order

The shift is toward totalitarianism, and the populations have been (and are being) conditioned to accept, if not embrace, collectivist thought and socialism. Orwell envisioned it. His work is labeled a work of fiction, although all of the measures Oceania pursued are either currently in place in the United States or they’re being developed.

China Builds Second Aircraft Carrier As Xi Flexes Maritime Muscle

As tensions continue to rise in both the South China Sea (see the recent protest by dozens of Filipinos in the Spratlys) and the East China Sea (where Beijing and Tokyo are feuding over disputed islands and claims on oil and gas fields), the PLA has begun building China's second aircraft carrier in yet another sign that Xi fully intends to build a true blue water navy.

The Keynesian Recovery Meme Is About To Get Mugged, Part 2

At the end of the day, the Fed led central bank money printing spree of the past two decades resulted in what is functionally a massive dollar short. Once the Fed stopped expanding its balance sheet when QE officially ended in October 2014, it was only a matter of time before all the “near-dollars” of the world would come under enormous downward pressure in the FX markets. Our Keynesian witch doctors believe that sinking currencies are a wonderful thing, of course. They claim making your country poorer is a good way to stimulate export growth and a virtuous cycle of spending and growth. But there is another thing. It is also a good way to generate capital flight and the ensuing chaos that creates.

Argentines Stumped By Mystery Trucks Loaded With $130 Million In "High Denomination" Bills

Apparently taking a page out of the Spanish government's playbook, Argentines in the Santa Cruz region were surprised yesterday afternoon when at least five bright yellow armored trucks accompanied by heavily armed police paraded through the city. Just weeks after Kirchner's Peroniost government lost the election, and coming after five office fires (destroying banking and economic files from the current regime), local press reports the trucks loaded up with $130 million of banknotes at the airport and driven to banks in the region where outgoing President Kirchner's sister-in-law is governor. Amid comments by the central bank that there are no reserves left, and ongoing discussions of larger banknote denominations and (implied 50% devaluations), one could only speculate where the officially "business-as-usual" transfer of $100s of millions of banknotes will end up.

Hyperinflating Argentina Forces Government To Increase Banknote Denomination

For the first time in years, as PanAm Post reports, lawmakers from Argentina’s ruling Front for Victory coalition have proposed upping the size of the country’s largest denomination banknote to AR$200. While some 42% of Argentineans deemed it necessary in a 2014 survey the Cristina Kirchner administration has ignored repeated requests by economists, banks, and other financial institutions to issue larger-denomination bills. Indeed, Congressman Carlos Kunkel, author of the current bill initiative, claims the measure has nothing to do with inflation, but would "reduce the cost of printing and circulating money."