Things just escalated notably - (Via Bloomberg):
*UKRAINE FORCES ATTACK ARMED CONVOY FROM RUSSIA, 'DESTROY' PART OF ARMED CONVOY: LYSENKO
*RUSSIA SAYS IT'S GETTING INFO OF DIRECT THREATS TO CONVOY, SAYS UKRAINE INTENSIFIES MILITARY OPS TO DISRUPT CONVOY
EU & US Stocks and bond yields (and Ruble) are tumbling, gold rising... We await Putin's response... "concerned at attempts to disrupt convoy."
Europe Says Would Consider Any "Unilateral Military Action By Russia A Blatant Violation Of International Law"Submitted by Tyler Durden on 08/15/2014 11:53 -0400
While we await to see any actual proof of either a Russian armed convoy entering Ukraine territory, or that this convoy was shelled by Ukraine artillery, because as a reminder this is first and foremost a war of relentless propaganda on all sides, here is the latest from Europe, which moments after stating it may roll back sanctions just announced it is now considering even more actions against Russia. From Reuters:
- EU FOREIGN MINISTERS SAY WOULD CONSIDER ANY UNILATERAL MILITARY ACTIONS BY RUSSIA IN UKRAINE AS BLATANT VIOLATION OF INTERNATIONAL LAW
So far the only official comment that is missing is that of Russia which has vehemently denied any entrance by an armed convoy into Ukraine and has yet to have any direct statement on the alleged destruction of its assets in Ukraine.
NATO Accuses Russia Of Escalating Ukraine Conflict, Demands Withdrawal Of Russian Troops From BorderSubmitted by Tyler Durden on 08/15/2014 08:03 -0400
"Remember when"... US futures soared by over 60 point in 5 trading days on what was the tiniest hint that Putin may be de-escalating based on a Russian media report citing the Russian security council? Well, NATO disagrees with the momentum chasing algos, and this odd spin coming out of Russia. Moments ago NATO said that Russia, while calling for de-escalation of the Ukraine conflict, had in fact been escalating it.
- Barack Obama's 'vacation from hell' (Politico)
- Russian aid convoy checked; military vehicles mass near Ukraine (Reuters)
- Ukraine Says APCs Entered From Russia to Aid Insurgents (BBG)
- Islamic State Said to Challenge Al-Qaeda for Leadership (BBG)
- Missouri protests calmer after governor puts black police captain in charge (Reuters)
- Finally someone will prove the US is a pyramid scheme (in a 1000 page presentation): Ackman’s Pershing Square Sues U.S. Over Fannie, Freddie (BBG)
- Banks, Financial Firms Load Up on Cheap Debt (WSJ)
- Putin to Meet Finnish President as Threat of Cold War Grows (BBG)
It appears Ukraine's Radical Party leader Oleh Lyashko is a glutton for punishment. In 2011, as Reuters reports, he was throttled and pushed to the ground by former Vice-Speaker Adam Martinyuk after he accused him of hypocrisy; and on a separate occasion Martinyuk threw a glass of water in his face. However, this morning, it got serious after he accused Independent Party Deputy Oleksandr Shevchenko of being a "pot-bellied fatty," who "instead of going to the Donbass and helping our guys, people like him go to parliament and raise their hands." Shevchenko's response - solid right cross to Lyashko's jaw, sending the smaller man staggering. One can't help but wonder how this approach to settling political scores would go down in Washington...
Global crises wreak havoc on all levels of existence, not to the mention the great cost to human lives. If we are to learn from history, however, it seems as though we might have to nevertheless brace ourselves for yet another one in the near future, as it marks the end of one saeculum and the start of a new economic paradigm aligned more positively with proper balances of trade, debt, and policies. The US is trying to postpone the crisis by printing money, however this is creating currency wars with nearly all major central banks in the world. As history has shown us time and again, causing this delay through money printing will only aggravate the problem, not only not preventing the inevitable, but indeed making the transition more painful and costly.
The Ukrainian parliament approved a law on Thursday to impose sanctions on Russian companies and individuals "for financing terrorism." As Reuters reports, Prime Minister Arseny Yatseniuk told parliament that "by approving the law on sanctions, we showed that the country is able to protect itself." The first 'threat' though - that European energy companies would have to agree major contract revisions when purchasing Russian natural gas, potentially disrupting supplies in the coming winter months - seems suicidal... and EU leaders are not happy. Slovak Premier Robert Fico asked rhetorically, "Isn't it strange that a country, which has signed an association agreement, a country, which we are all trying to help, is taking steps that jeopardize the interests of individual EU members?"
Putin Says The Petrodollar Must Die, "The Dollar Monopoly In Energy Trade Is Damaging Russia's Economy"Submitted by Tyler Durden on 08/14/2014 11:15 -0400
PUTIN SAYS RUSSIA SHOULD AIM TO SELL OIL AND GAS FOR ROUBLES GLOBALLY, AS DOLLAR MONOPOLY IN ENERGY TRADE IS DAMAGING ECONOMY
This is especially the case in Ukraine where the currency has lost more than half of its value versus gold (see chart above and below). Gold in Ukraine Hrvynia is up 70% since the start of 2014. People who own gold in Ukraine would laugh at you, if you said that gold is not a safe haven. As would people in many countries in South America, the Middle East and Africa.
- Police fire tear gas, stun grenades at Missouri protesters (Reuters)
- Putin’s Pipeline Bypassing Ukraine at Risk Amid Conflict (BBG)
- Russia's Largest Oil Company Seeks $42 billion to Weather Sanctions (WSJ)
- Shells hit central Donetsk, Russian aid convoy heads towards border (Reuters)
- U.S. Tightens Sanctions, Putting More Russian Companies at Risk (BBG)
- How to Blindly Score 43% Profit Overnight in China Stocks (BBG)
- Tears guaranteed: San Diego Pension Dials Up the Risk to Combat a Shortfall (WSJ)
- Euro Recovery Halts as Germany Shrinks, France Stagnates (BBG)
- Billionaire Found in Middle of Bribery Case Avoids U.S. Probe (BBG)
- Hillary Clinton, Barack Obama 'Hug It Out' on Martha's Vineyard (WSJ)
A report in The New England Journal of Medicine traces the spread of the recent Ebola outbreak from Gueckedou, Guinea, to nations worldwide. As The NY Times reports, West African governments have gone 'medieval' as they have revived a disease-fighting tactic not used in nearly a century: the “cordon sanitaire,” in which a line is drawn around the infected area and no one is allowed out. And most worryingly, Reuters reports that a nurse who had close contact with a Liberian Ebola patient skipped quarantine in Lagos and went to her home in the eastern city of Enugu, where she made contact with 20 other people.
Obama Plans "Non-Boots-On-The-Ground Humanitarian-Adviser-Marines-Led" Yezidi Rescue Mission In IraqSubmitted by Tyler Durden on 08/13/2014 13:18 -0400
Last night we nearly exploded when the adminstration tried to explain how the 130 Marines (military advisers) were non-combat troop 'boots-on-the-ground' in Iraq. Today, the State Department, Pentagon, and White House are all out with mind-numbing propaganda to reassure an anxious America that a planned rescue mission of 'thousands' of Yezidi will be entirely supported by non-combat troops.
UPDATE: *BRAZIL PRES. CANDIDATE CAMPOS DIES IN PLANE CRASH: GLOBONEWS
Brazil's stock market is reeling this morning as rumors and now news hit that Brazilian Presidential candidate Eduardo Campos was on board a private jet that crashed in the city of Santos. Polls had put Mr. Campos head-to-head with Ms. Rousseff (but behind Ms. Silva). A police official in Santos said there were "certainly" fatalities in the crash, but could not say how many or provide any additional information. Campos had run on a platform of less government intervention and proposed a bill to ensure central bank indpendence.
ISIS Now A Commodity "Trading" Powerhouse: Islamic States Steals Iraq's Grain Then Sells It Back To Iraq GovernmentSubmitted by Tyler Durden on 08/13/2014 10:24 -0400
A strategy so brilliant Goldman is wondering how it didn't think of it first...
Interestingly, the FT also reports that there may be significant buying of silver in the coming days: “Indeed, there are already rumours in the market place that some big silver producers and consumers are preparing to pepper the market with orders.” This creates the possibility of the short squeeze that many market participants and silver analysts have been expecting for some time.