Not only are the Post 9/11 entanglements the longest of any war the US has been involved in, they are also the most expensive – even more than World War II, when the US was fighting on two major fronts against heavily industrialized powers. Rather than achieving victory quickly as advocated by Sun Tzu, the US has been involved in very costly wars for well over a decade now. Sun Tzu had something to say about this: “Victorious warriors win first and then go to war, while defeated warriors go to war first and then seek to win.” Seen in this light, has the Post 9/11 military strategy made the US a victorious warrior? While all of this is taking place, the US’ ideological foes can afford the luxury of sitting back and employing a more measured approach: “To fight and conquer in all our battles is not supreme excellence; supreme excellence consists in breaking the enemy's resistance without fighting.” Indeed, nothing breaks morale more than the prospect of never ending foreign wars.
"Russia Could Ditch Dollar In 2-3 Years"; Deputy PM Warns Nuclear Subs "Could Reach Any Country On Any Continent"Submitted by Tyler Durden on 09/30/2014 17:18 -0500
"Two to three years is enough, not only to launch [settlements in rubles], but also to complete these mechanisms," says Andrey Kostin, head of Russia’s second-biggest bank VTB, noting that the possibility of the US and EU widening sanctions to exclude Russia from the SWIFT global money transfer system would become “a point of no return” making any further dialog impossible. However, as Deputy Prime Minister Dmitri Rogozin explains in this interview, how Russia's military and industrial complex is responding to a growing threat from America. Russia is not responding with any talk about the nuclear button (at least not yet); but they are preparing for such an eventuality: "we are creating a nuclear submarine fleet... capable of reaching any country on any continent, if [USA] suddenly becomes the aggressor, and our top-most national interests come under threat," adding that Obama's coup has ushered in "the complete demise of the Ukrainian State."
Our degenerate Central Bankers have tossed up yet another asset air-ball into the debt financed Bubblenomics Millennium. The only remaining question is why?
Russia and China are discussing setting up a system of interbank transactions which will become an analogue to International banking transaction system SWIFT, First Deputy Prime Minister Igor Shuvalov told PRIME on Wednesday after negotiations in Beijing. "Yes, we have discussed and we have approved this idea," he said.
If the market signs are blurry, your best option is to look at what the top investors are doing.
US Equity Futures Soar To Fresh All-Time Highs On New Ukraine "Ceasefire" Which Is Promptly Refuted By All SidesSubmitted by Tyler Durden on 09/03/2014 05:56 -0500
The comedic value of developments out of Ukraine, especially when it comes to "de-escalation", truly has no equal. Case in point, events from the past three hours, when we learned that there is a new Ukraine ceasefire, there is no Ukraine ceasefire, Putin is looking for a ceasefire but can't be part to a agreement as he is not "firing", NATO is pushing again, Ukraine demands special treatment, the Ukraine rebels were never even consulted on the latest ceasefure, and so on. End result: futures just hit new all time highs.
Gold Lock Down Despite Aggressive Plan To Ban Russia From SWIFT, Terrorism & War Risk; Palladium At Multi-Year High Over $900Submitted by GoldCore on 09/01/2014 15:14 -0500
The 13 year anniversary of the 911 attacks in 2001 looms next week and given developments in recent days and weeks, one must be wary of new attacks in the UK , U.S. and other western nations. The UK has raised the country's terror threat level from substantial to severe, its second highest level. MI5 and MI6 said there was no information to suggest an attack was imminent.
More Sanctions: Europe Will Ban Purchase Of Russian Bonds; However Russian Gas Exports Remain UntouchedSubmitted by Tyler Durden on 09/01/2014 08:18 -0500
Over the weekend, insolvent, debt-dependent Europe thought long and hard how to best punish Russia and moments ago reached yet another milestone in deep projective thought: as Reuters reports, Europeans could be barred from buying new Russian government bonds "under a package of extra sanctions over Moscow's military role in Ukraine that European Union ambassadors were to start discussing on Monday, three EU sources said." This will be in addition to the ban on the debt funding of most Russian corporations. So as Europe's 7-day ultimatum for the Kremlin to "de-escalate" counts down, Putin has a choice: continue operating under a budget surplus and ignore Europe's latest and most amusing hollow threat which is merely a projection of Europe's biggest fears, or spend himself into oblivion as Europe has done over the past decade and become a vassal state of the Frankfurt central bank.. Somehow we doubt Putin will lose too much sleep over this latest "escalation"...
Dispassionate look at the week ahead, without the hysterics of the sky is falling or the mother of all crises is around the corner.
UK Prime Minister David Cameron came out swinging this morning; not only at ISIS but in calling for European leaders to block Russia from the SWIFT banking transaction system. European leaders have already (via unnamed sources) denied any actual new sanctions will take place (though they will be discussing them at the NATO Summit) but - as we have noted previously - this is yet another unintended consequence-driven nail in the coffin of USD hegemony...
- Obama Cools Talk of Strikes Against Islamic State in Iraq or Syria (WSJ)
- Separatists say will allow 'trapped' Ukrainian forces to withdraw (Reuters)
- Ukraine Fighting Surges as Russian-Backed Forces Gain (BBG)
- Missouri police sued for $40 million over actions in Ferguson protests (Reuters)
- BTFDividend stocks? Tesco Slumps as Retailer Slashes Dividend 75% on Forecast (BBG)
- In town halls, U.S. lawmakers hear voter anger over illegal migrants (Reuters)
- Obamacare’s Latest Threat Nears Turning Point in Court (BBG)
- Untangling the Mess of Austrian Bank Hypo (WSJ)
- The billion-dollar fall of the house of Espirito Santo (Reuters)
- Manhattan Condo Resale Prices Reach Record High (BBG)
- California Drought Squeezes Wells: State Considers Regulating Groundwater Use for First Time (WSJ)
With all of England on edge because the ISIS executioner of James Foley, known as "Jihadi John" sported a British accent, and who may or may not have been identified as Abdel-Majed Bary, although UK government sources have not yet officially revealed his identity, one person has decided it is time to not waste yet another crisis. The person: London mayor Boris Johnson who as the Guardian reports, has called for the presumption of innocence to be reversed in cases where Britons travel to Iraq or Syria and said he wants the jihadist who beheaded an American journalist to be killed in a bomb attack. If Johnson's proposal for a "swift and minor" law change passes, any Brit traveling to Iraq or Syria will automatically be branded a terrorist and suffer the appropriate consequences.
The Wall Street Journal's Jon Hilsenrath unleashed an instantaneous reaction to today's FOMC minutes and the message is clear - markets are much less uncertain than the Fed about the timing (sooner rather than later) of the first rate-hike. The minutes of the meeting, Hilsy notes, provide fresh evidence of an intensifying debate inside the central bank about when to respond to a surprisingly swift descent in the unemployment rate and rising consumer prices. The minutes appeared to reflect a slightly more aggressive stance than Ms. Yellen's testimony.
- Ferguson at Turning Point After Night of Relative Calm (BBG)
- Gaza war rages on, Hamas says Israel tried to kill its military chief (Reuters)
- Surge in Putin Patriotism Masks Pain of Sanctions (BBG)
- Bank of England splits over rate hike for first time in 3 years (Reuters)
- Putin Meeting Leaves Kiev With Tough Choices (WSJ)
- European Gas Reverses Biggest Drop Since 2009 on Ukraine (BBG)
- "Isolation" Mongolia Seeks Economic Lifeline With Pivot to China, Russia (BBG)
- Uber Picks David Plouffe to Wage Regulatory Fight (NYT)
- China Levies Record Antitrust Fine on Japanese Firms (BBG)
The only word to describe today's just concluded, and final for the week, auction of 30 Year paper can only be described with one word: blistering. First, the pricing yield itself, coming at 3.224% a whopping 2.5 bps through the When Issued, was the lowest since May 2013, just before the first Taper tantrum which sent yield surging only to regain all Ultra losses in the next year.