What has happened to America?
- House votes to arm Syrian rebels (Reuters).... aka ISIS
- Fed Plots Cautious Course on Rate Rises (Hilsenrath)
- Scots vote in independence referendum to seal the United Kingdom's fate (Reuters)
- Yes or No, the Winner of the Referendum Is Brand Scotland (BBG)
- Draghi Loan Plan Missing Estimates Hampers ECB Stimulus (BBG) - get with the spin, it simply means "Moar QE"
- Obama Plans to Tightly Control Strikes on Syria (WSJ)
- IMF warns of risks from 'excessive' financial market bets (Reuters)
- Russia Praises Ukraine's Autonomy Law for Rebel Areas (WSJ)
Whatever Russia does, doubt does not even enter the equation. The answer is sanctions. So here we go again. No one ever lost money betting on the stupidity of the usual, unknown “senior US officials” – who are now spinning the latest sanction package is to force Moscow to “respect international law and state sovereignty.” A cursory examination of the historical record allows this paragraph to be accompanied by roaring laughter. As for Russia’s "isolation", companies are barred from, in Washington-Wall Street newspeak, "important dollar-denominated funding sources." Or, euphemistically, "Western capital." This means the US dollar and the euro. Anyone following superimposed moves towards a multipolar world knows Russia does not need more US dollars and euro.
The idea that the Obama administration has the budget deficit under control is a complete and total lie. The U.S. national debt has actually grown by more than a trillion dollars in less than 12 months. We continue to wildly run up debt as if there is no tomorrow, and by doing so we are destroying the future of this nation.
Smuggled oil could be a pivotal issue for the U.S. as it seeks to destroy IS. The militant group sells oil at a reduced price – perhaps around $25 per barrel. At first, it sold the oil to middlemen, who moved the oil to Iran, Syria, Jordan and Turkey. But as IS’ operations grew, they forced out the middlemen, beat back other militant groups, and are now providing security to their own convoys of oil tanker trucks heading out of their territory to market. Air strikes may succeed in destroying vehicles and other military equipment under IS control, but cutting off the flow of money – specifically from oil smuggling – will likely go further in weakening the Islamic State.
Who could have seen this coming? In yet another example of untruthiness, it appears, according to Joint Chiefs of Staff Chairman Martin Dempsey, testifying before the Senate Armed Services Committee this morning, President Obama would back U.S. advisers accompanying Iraqi troops in battle to combat Islamic State militants if necessary. For now, Dempsey noted, Iraqi security forces are "doing fine," but as Republican, Sen. Jim Inhofe noted, "it is foolhardy for the Obama administration to tie its hands and so firmly rule out the possibility of special operators on the ground." Following Hagel's remarks that the fight will "not be an easy or a brief effort," Dempsey said if it doesn’t succeed, he would not rule out advising Obama to use U.S. ground forces.
Obama To Send 3,000 Ebola-Fighting Boots-On-The-Ground To Africa; CDC Warns America "Now Is The Time To Prepare"Submitted by Tyler Durden on 09/16/2014 10:24 -0400
On the heels of yesterday's almost unbelievable forecasts of the exponential rise in Ebola case counts - and warnings of a 20% chance of Ebola reaching the USA by year-end, WHO officials have confirmed that their previous forecasts of 20,000 cases "does not seem like a lot today." This has, according to Reuters, the United States announced on Tuesday that it would send 3,000 troops to help tackle the Ebola outbreak as part of a ramped-up response including a major deployment in Liberia, the country where the epidemic is spiralling fastest out of control. Perhaps even more worrisome - for those who explained how 'contained' Ebola was - is the CDC's release of an Ebola checklist warning American healthcare workers "now is the time to prepare."
- Snow is coming: OECD Cuts Economic Growth Forecasts (WSJ)
- World waits for white smoke from U.S. Fed (Reuters) - Understandable error: they meant "green"
- Scots Breakaway at 45% Odds as Economists Warn of Capital Flight (BBG)
- Ukraine President Poroshenko Faces Backlash Over EU Trade Deal Delay (WSJ)
- German Anti-Euro Party Advances in Merkel Homeland Voting (BBG)
- Clinton Hints at 2016 Run as Super-PAC Packs Iowa Steak Fry (BBG)
- Air France, Lufthansa Hit by Strikes in Fight for Future (BBG)
- U.S. sees Middle East help fighting IS, Britain cautious after beheading (Reuters)
- Ex-Billionaire Charged by Brazil With Financial Crimes (BBG)
First it was the 'broad coalition' that appeared a little narrower than President Obama explained to the world last week. Today, 2 more crucial aspects of the 'strategy' appear to be faltering. Despite the promise of $500 million to train "moderate" Syrian terrorist/rebels to fight ISIS, GlobalPost reports Syrian rebels and jihadists from the Islamic State have agreed a non-aggression pact for the first time. Under the deal, "the two parties will respect a truce until a final solution is found and they promise not to attack each other because they consider the principal enemy to be the Nussayri regime." Not exactly what Obama and Kerry had in mind. But it is John Kerry's trip to Iraq that appears to have had blowback already as Reuters reports the newly installed US-friendly PM al-Adadi ordered his air force to halt strikes on civilian areas, "even in those towns controlled by ISIS," just a day after Kerry's visit (which left Turkey explaining how it would not support US airstrikes either). So far, so good?!
"Rudderless and without a compass, the American ship of state continues to drift, guns blazing." While critics have been questioning the legality of U.S. military campaigns consistently since the end of World War II, one trend has become increasingly clear. With each new President and each new war, we have witnessed those who hold the office act more and more like dictators, and less and less like constitutional executives. One very important, and up until recently, overlooked point about Obama’s latest “war on ISIS” is that this is not at all just more of the same. This crosses yet another very important line of shadiness, and if we as as American public allow him to do so, we will suffer grave long-term consequences to our economic future as well as our liberties. This is very serious stuff.
Here’s the giant flaw in Obama’s incendiary strategy. The Peshmerga can be counted upon to ferociously defend Kurdistan against ISIS encroachment, and the Shiite militias will doubtless accomplish the same in their own territories. But no one with a modicum of historical knowledge would think it sane to send them up into the Sunni lands of the Euphrates valley to mop-up after the American bombs, missiles and drones. In short, once Washington is in full bombs away mode there will be no Free Syrian Army or reconstituted Iraqi army to finish the job. So what Obama actually launched last evening was Operation Blowback - Washington's stupidest military campaign yet.
Well that didn't take long. After espousing his strategy last night of leading a broad coalition against ISIS, it appears President Obama's "allies" are backing away from the plan. As The WSJ reports, Germany and the U.K. on Thursday ruled out carrying out air strikes on Islamic State militants in Syria. It appears the Europeans, realizing the ire that these actions will likely cause to Putin, are stepping back - "We haven't been asked, nor will we do it," German Foreign Minister Frank-Walter Steinmeier told reporters and his U.K. counterpart Philip Hammond explicitly ruled out air strikes in Syria, after the U.K. parliament struck down such a move last year. So that leaves the French?
- Obama orders U.S. airstrikes in Syria against Islamic State (Reuters)
- Obama Relying on Mideast Allies to Counter Islamic State (BBG)
- Scotland Nationalists Claim U.K. Oil in 40-Year Campaign (BBG)
- Scottish Polls Embolden Catalans Pushing Rajoy for Vote (BBG)
- Royal Bank of Scotland: RBS will leave Scotland if voters back independence (Guardian)
- Most Hedge-Fund Managers Are Overpaid, Unigestion Says (BBG)
- China Inflation Softens to Four-Month Low (WSJ)
- Munger Hosts Groupies, Mocks Wall Street, Praises Buffett (BBG)
Previewing tonight’s televised prime-time address to the nation, The Onion reports that White House aides confirmed that President Obama will reassure Americans that the impending military campaign against ISIS will be the exact same type of open-ended, drawn-out conflict that they are used to. “The president’s message is clear: This will be just another one of our routine intractable engagements in the region - it’s going to be unending, it’s going to be expensive, and it’s going to affect our credibility within the international community. There will not be any surprises for folks to worry about.”
And in The President's own words, "But I want the American people to understand how this effort will be different from the wars in Iraq and Afghanistan."
The White House says President Barack Obama has told congressional leaders he has the authority he needs to take the action against the Islamic State militants that he will outline Wednesday night, according to AP. Following the meeting, the White House said Obama still welcomes action by Congress that would "aid the overall effort" and demonstrate to the world that the United States is united in defeating the threat from the Islamic State. So that's that then... does he also have 'authority' to fund the $5bn (or more) he needs for this crusade?