The law of unintended consequences is becoming ever more prominent in the economic sphere, as the world becomes exponentially more complex with every passing year. Just as a network grows in complexity and value as the number of connections in that network grows, the global economy becomes more complex, interesting, and hard to manage as the number of individuals, businesses, governmental bodies, and other institutions swells, all of them interconnected by contracts and security instruments, as well as by financial and information flows. It is hubris to presume, as current economic thinking does, that the entire economic world can be managed by manipulating one (albeit major) subset of that network without incurring unintended consequences for the other parts of the network.
The airline has been working with its banks and the relevant authorities and understands that the funds – less than $5 million – have now been frozen. Although the sum stolen was relatively small in corporate terms and appears to have been tracked and frozen quite quickly, the incident - yet again - highlights the threat posed by cybercrime to today’s banking and financial systems.
Update 2: Curiously, while we were confident Iran would deny the report first, it was in fact the US: US NAVY DENIES CONFRONTATION WITH IRANIAN MILITARY: CNBC
Update: WHITE HOUSE REFERS COMMENT ON IRAN SHIP CAPTURE TO DEFENSE DEPT
Moments ago according to Saudi-owned Arabiya news, Iranian forces have seized a US cargo ship, which has some 34 American sailors, which they have taken to the port of Bandar Abbas. Iran's Farsnews confirms the Arabiya report, stating that "a US cargo ship with 34 crew was stopped and seized by Iranian Navy warships on Tuesday. The Iranian Navy has confiscated the American trade vessel with all its 34 crew for trespassing on Iran's territorial waters in the Persian Gulf."
- Nepal earthquake toll crosses 3700 (Reuters)
- Greeks Add Pressure on Tsipras to Compromise as Talks Resume (BBG)
- With No Deal on Greek Bailout Aid in Sight, Some in Europe Suggest ‘Plan B’ (WSJ)
- BOJ Shouldn’t Ease Further; Yen Fell Enough: Business Lobby Head (BBG)
- Clinton Foundation admits making mistakes on taxes (Reuters)
- Here’s the Old Nemesis Starting to Spook Bond Traders Again (BBG)
- Deutsche Bank to Trim Investment Banking (WSJ)
- China’s Stocks Rise to Seven-Year High on SOE Merger Speculation (BBG)
The lines have been drawn in many police departments: it’s us vs. them. Trust in many departments has been utterly shattered within some communities because the police hold themselves to a different standard than they do the populace. But the recent cases of police brutality are simply a symptom of a much larger problem. Society in the US is breaking down, civility has been lost, and the country is rapidly becoming uncivilized. This extends within and across all of the most important institutions.
Germany had lost the war, the Nazi industrialists agreed, but the struggle would continue along new lines. The Fourth Reich would be a financial, rather than a military imperium. The industrialists were to plan for a “postwar commercial campaign.” They should make “contacts and alliances” with foreign firms but ensure this was done without “attracting any suspicion.”... The State Department’s efforts on Schacht’s behalf worked. He was initially found guilty but was then acquitted, to the fury of the Soviet judge.
USA USA USA #15? Despite aerial bombardment, growing tensions with every neighbor, and the almost ubiquitous daily car-bombs, Israelis are "happier" than Americans according to Bloomberg's world happiness index. Happiness, it appears, is most abundant a long way from the equator with Switzerland, Iceland, Denmark, Norway, and Canada all topping the list; whereas the unhappiest nations are all in Saharan or sub-Saharan Africa (apart from war-torn Syria and Afghanistan).
While this week sees the peak of Q1 earnings season, it will be a generally quiet week on the macro economic front for both EM and DM, with the emphasis on the latest seasonally adjusted manufacturing sentiment surveys, US durables and Japan trade.
Is mainstream media really going to ignore that Marco Rubio’s campaign is named after the late 1990?s think tank called a ‘Project for a New American Century’ (PNAC), founded by Head Neocon – Bill Kristol? And this is no coincidence. Guess who’s doing the Sunday talk show circuit campaigning for a Rubio presidency?
The conservative German daily Die Welt, well-known for its unflinching support for Israel, recently published an article stating “with near certainty” that the Federal Republic of Germany, or West Germany, helped finance Israel’s nuclear program in the 1960s. The Welt report comes after former Israeli President Shimon Peres (who was the head of Israel’s nuclear-weapons program at the time of its inception in the 1950s) denied that funding for Israel’s nukes came from Germany earlier this month.
Anthrax Was As Important As 9/11 In "Justifying" the War on Terror, the Iraq War, and the Patriot Act
The propagandistic American “media” and the crazed neoconservatives have set humanity on the path to destruction. The American people and the entire world need to understand that the threat to life on earth resides in Washington and that until Washington is fundamentally and totally changed, this threat will remain as the worse threat to life on earth. Global Warming can disappear instantly in Nuclear Winter.
Vladimir Putin holds his annual live Q&A event where, over the course of more than four priceless hours, the Russian President takes questions from across the country and discusses everything from foreign relations, to military might, to his sleeping habits, to not wanting to be cloned.
The Asian Infrastructure Investment Bank will establish an AIIB currency basket with China set to push for the yuan to take a prominent role and for “special currency funds” to be established in order to issue yuan-denominated loans through the fund. "The AIIB's grand vision for infrastructure investment [comes] with challenges but China should do its best to establish the yuan as a currency for settlement and denomination," one analyst says.
Neither Russia nor China is an imminent threat to the US, but a cataclysmic event is looming in the economic front, one which will forever change the perception of America by the rest of the world; or how we, Americans, perceive ourselves. It’s back to what that great cartoonist (and sociopolitical commentator), Walt Kelly, told us a half century ago as America struggled during the Vietnam War:
“We have met the enemy and he is us.”