Middle East

The Saudis Hate Iran Because It’s NOT a Monarchy

To combat Islamic militants the White House says threaten national interests, the U.S. has spent nearly $100 billion to arm and train foreign militaries across the Middle East, North Africa and South Asia, an analysis by Vocativ shows. And nearly all of them are reeling from setbacks that threaten to undermine what’s become a core component of American foreign policy in these regions. As a former military commander and United States ambassador in Afghanistan recently noted, "our track record at building security forces over the past 15 years is miserable."

The urgency of the moment favors cooperation, while geography gives Russia major advantages in leading the fight. The highly charged political atmosphere in the U.S., in the midst of a Presidential election, only adds to the fog of war in Syria, forcing public denials and secret agreements where there needs to be utmost clarity, making military cooperation in Syria almost impossible, while raising the risks of accidental conflicts between so-called partners. Adding to the confusion is the increasingly cordial meetings between Russian and Saudi leaders.

Just a day after no lesser world-renowned newsletter writer than Dennis Gartman went full bull-tard of crude oil (in $29.95 terms), Goldman Sachs has come out with a "lower for longer" warning about the crude complex noting that the gains have been exacerbated by still large short positioning and the break of key technical levels. Despite the magnitude of this rally, Goldman does not believe that data releases over the past week suggest a change in oil fundamentals. In fact, high frequency data continue to point to an oversupplied market despite a gradual decline in US production.

Like other banks, Deutsche has been caught up in the Libor-rigging scandal, and faces another investigation in Switzerland for suspected price-fixing in the precious metal market.

Gillian Tett, ourselves and many others have warned that Deutsche and its massive derivative book has the potential to be a ”European Lehman Brothers”. Is Deutsche Bank, the largest holder of Warren Buffett’s “financial weapons of mass destruction” derivatives in trouble?

• Congress probing U.S. spy agencies' possible lapses on Russia (Reuters)
• Defense Ministers From NATO Hit Out at Russian Action in Syria (WSJ)
• U.S. Rules Out Cooperation With Russia as Moscow Launches First Naval Strikes on Syria (WSJ)
• Man Who Called China's Boom and Bust Says Use This Rally to Sell (BBG)
• For Volkswagen, New Questions Arise on U.S. Injury Reporting (BBG)
• Deutsche Bank May Swell $14 Billion Selloff in China Bank Stakes (BBG)
• Emerging market slowdown hits German exports (FT)

The question today is merely one of timing. How long before a negative trigger is introduced? How long before Israeli planes come into contact with Russian or Iranian fighters? How long before U.S. troops come into contact with Russian troops? How long before Israel or Saudi Arabia strike Iran? And if the U.S. backs out completely, how long before the entire dynamic of the Middle East is flipped and America loses petro-status for the dollar? With the speed of events forming a fiscal-political riptide, it is hard to imagine we will be waiting very long to find out.

"The Saudi population, especially the younger people, are growing restless because they see what is happening in the world through social media of which they are among the highest users - that’s the only means they have to communicate. So the situation inside the country is also very fragile and the foreign policy conducted by the current regime is very perilous. It is only a matter of time because the Gulf States are ruled by oligarchies who maintain control through bribery and the sword. So this is a challenging time for the Gulf States despite all the public commentary suggesting they are immune to the uprisings."

Russia can be seen as maneuvering to split OPEC into two blocs, with Russia, although not a member, persuading the “Russian bloc” to isolate Saudi Arabia and the Gulf Arab OPEC members within OPEC. This might persuade the Saudis to seek a compromise with the have nots.

The Russians Will No Longer Allow Regime Change of Their Allies

"This is a real war on Sunnis, their countries and their identities. Join a jihad against the enemy of God and your enemy and Muslims will back you every way they can."

If circumstances of any incident appear not to add up, it’s pertinent to thoroughly examine the current narrative for signs the State is attempting to mold public opinion — because it is there you will find the truth that you’re not being told. In the case of MSF, a massive treaty cum trade deal involving U.S. interests in another part of the world from the tragedy in Kunduz can offer, perhaps, insight which might otherwise seem unrelated. As it turns out, MSF have been particularly vocal critics of the impending Trans-Pacific Partnership — and their criticism hasn’t gone unnoticed.

"The think tanks do not disclose the terms of the agreements they have reached with foreign governments. And they have not registered with the United States government as representatives of the donor countries, an omission that appears, in some cases, to be a violation of federal law, according to several legal specialists who examined the agreements at the request of The Times... As a result, policy makers who rely on think tanks are often unaware of the role of foreign governments in funding the research."

Here are some State Department talking points on Syria for cable news anchors... If you do all this, you will demonstrate your loyalty to the State Department, the bipartisan foreign policy consensus, the military-industrial complex, the One Percent, your advertisers, your producers and editors, and the unsung heroes behind the scenes who arrange your teleprompter scripts. You too could be an Andrea Mitchell, or Christiane Amanpour, posturing as an “expert” while trotting out our talking points. And even after they’re exposed as bullshit, you won’t have to say you’re sorry. People will soon forget anyway.

Maybe we just ought to step aside for a while and see what happens...