Over the past month, there has been a lot of "Hilsenrathing", or the biased media urgently "explaining" to the Western world, just what Russia's actions mean both tactically in response to Ukraine developments, and strategically as part of Putin's global perspective. So instead of relying on the broken media narrative which serves merely to perpetuate US corporate interests and rally the public behind this or that company's geopolitical interests, here, straight from the horse's mouth, in this case Russian foreign minister Sergey Lavrov, how Russia sees itself in a world in which it is allegedly "isolated", and "threatening Ukraine" with further invasion but more importantly, how the Russians view the rapidly changing global balance of power, in which post-USSR Russia has emerged from the backwood of slighted nations and stormed to the stage of nations who dare defy the former global hegemon, the US.
Diplomatic relations can be roughly categorized into realism (utilitarianism) and idealism (led by ideology and philosophy). Although realism has been dominant in modern times, idealism has seemingly been everywhere and nowhere - U.S. is a realist with ideals, while China is a realistic idealist. The “realism” of each country is more or less the same, but the ideals are not. The U.S. adores liberty and democracy while China worships the idea of a socialist democracy with Chinese characteristics. It’s because of such compromises and concessions by the U.S. and China that “new type great power relations” becomes possible. Russia, however, is a realist through and through. Of course, you can’t blame Russia for this…
Does Obama realize that he is leading the US and its puppet states to war with Russia and China, or is Obama being manipulated into this disaster by his neoconservative speech writers and government officials? World War 1 (and World War 2) was the result of the ambitions and mistakes of a very small number of people. We are again on the road to World War. One hundred years ago the creation of a world war by a few had to be done under the cover of deception. Germany had to be caught off guard. The British had to be manipulated and, of course, people in all the countries involved had to be propagandized and brainwashed. Today the drive to war is blatantly obvious. The lies are obvious, and the entire West is participating, both media and governments.
A few weeks ago, Canadian authorities decide to scrap its controversial 'investor' visa scheme (which had allowed waves of rich Hong Kongers and Mainland Chinese to immigrate and blow the real estate bubble ever bigger). This was met with hollers of derision from the Chinese demanding retribution. What was less well known, until now, is the massive surge in interest from wealthy Chinese in a US program offering 'investors' green cards in exchange for cash. "There is a panic being created in China," warned one immigration lawyer, with Chinese nationals now accounting for more than 80% of visas issued, compared to just 13% a decade ago. It seems the Chinese are in a hurry to get their money out.
Looking ahead at the next couple of weeks, Citi's Stephen Englander sees multiple sources of risk which he does not think are fully priced in. Most of these risks appear to be asset market negative, involving higher US rates, more geopolitical disruption and downside economic shocks.
Another morning melt up after a less than impressive session in China which saw the SHCOMP drop again reversing the furious gains in the past few days driven by hopes of more PBOC easing (despite China's repeated warning not to expect much). A flurry of market topping activity overnight once again, with Candy Crush maker King Digital pricing at $22.50 or the projected midpoint of its price range, and with FaceBook using more of its epically overvalued stock as currency to purchase yet another company, this time virtual reality firm Oculus VR for $2 billion. Perhaps an appropriate purchase considering the entire economy is pushed higher on pro-forma, "virtual" output, and the Fed's capital markets are something straight out of the matrix. Despite today's pre-open ramp, which will be the 4th in a row, one wonders if biotechs will finally break the downward tractor beam they have been latched on to as the bubble has shown signs of cracking, or will the mad momo crowd come back with a vengeance - this too will be answered shortly.
Straight Out of the Third Reich - User's Manual
Thirsty Californians are pinning their hopes that worried farmers in Australia are right. After months of the Polar Vortex dumping snow on the US east coast and drought on the west coast (and crushing the American Dream of an 'escape velocity' economy), The US Climate Prediction Center issued an El Nino watch bring hope of a big rain year for California, floods in South America, and dismal droughts in Southeast Asia. The Australian Bureau of Meteorology said an El Nino could occur during the southern hemisphere winter from May-July. Increased sea surface temperatures suggest an increasing chance of the global weather phenomenon and the great rotation from a Polar Vortex to a Solar Vortex.
Weekly outlook for the major currencies, from a technical perspective.
In the early hours of yesterday morning European Union politicians struck a deal on legislation to create a single agency to handle failing banks and bail-ins in the Eurozone. It is important to realise that not just the EU but also the UK, the U.S., Canada, Australia, New Zealand and most G20 nations all have plans for bail-ins. Prepare accordingly ...
For the past five years we have been complaining about the two-tiered, and broken, market resulting from the near-ubiquitous presence of HFT trading strategies, where fundamentals have been tossed into the trash, and where quote churning, packet stuffing and not to mention, momentum ignition, put on candid display just before market open today when the Emini was ramped in a vertical line straight up taking the S&P to new all time highs, have become the only trading strategies that matter. Why? Because algos were in a panic buying mode as other algos were in a panic buying mode, and so reflexively on. The SEC long ignored our complaints, even after the HFT-precipitated flash crash, which we had warned apriori would happen, in a market as broken and manipulated as the one the Fed and the algos have unleashed. This changed recently when NY AG Schneiderman finally decided to "look into things" following the release of Virtu's ridiculous prop trading profits when the firm, in its IPO prospectus, announced it had made money on 1327 of 1328 trading days. However, when even Goldman Sachs begins complaining about HFT, it may be time to fire all those 20-some year old math PhDs who devies your trading algorithms.
- Australia says nothing spotted in search for plane (AP)
- Putin looks to Asia as West threatens to isolate Russia (Reuters)
- China Billionaire Builds Metals With Dreyfus, Glencore Hires (BBG)
- China Beige Book Says Economy Slowing (BBG)
- Caterpillar Said to Be Focus of Senate Overseas Tax Probe (BBG)
- US Cancels Summit With Divided Group of Gulf Nations (WSJ)
- Cyprus defense minister suffers aneurysm (AP)
- Abe to zero in on economy as tax hike looms (Nikkei)
- Europe strikes deal to complete banking union (Reuters)
China’s hardly in need of more territorial disputes with neighbors. Yet, it has started a new one with Indonesia.
Why Mainstream Economists Like Krugman Are So WRONG and So DANGEROUS
- Possible debris off Australia a 'credible lead' for missing Malaysia jet (Reuters)
- Maldives and Afghanistan: Theories Blossom for Airliner (BBG)
- Ukraine Military Concedes on Crimea as Russia Takes Hold (BBG)
- Asia Stocks Drop on Fed; H-Share Index Enters Bear Market (BBG)
- Scientists say destructive solar blasts narrowly missed Earth in 2012 (Reuters)
- GM’s Ignition Victims Need Help From Bankruptcy Judge (BBG)
- U.S. Alleges Inside Traders Used Spycraft, Ate Evidence (WSJ)
- God Meets Profit in Obama Contraceptive Rule Court Case (BBG)