Testimony

Despite numerous explanations that no boots-on-the-ground will be on-the-ground in Iraq in the war against Islamic State, it appears, as CNN reports, that the US military has moved Search-and-Rescue (S&R) assets to Northern Iraq as part of a "constant rebalancing" depending on the evolving airstrike-only mission. Of course, as the 'unnamed source' was so quick to explain, this was in no way a response to threats from The UAE to pull out of the coalition unless S&R assets were placed in Iraq since, cynically speaking, the UAE demands are only the result of US demands that it demand it anyway.

"Keep your friends close and your enemies closer," appears to be the 'do-nothing-stupid' strategy that Washington continues to play in The Middle East. How else to explain the continuing 'close-ally' relationship with Saudi Arabia given that, as Reuters reports, Zacarias Moussaoui - a former al Qaeda operative imprisoned for life for his role in the Sept. 11, 2001 attacks - has told lawyers for victims of the attacks that members of the Saudi royal family supported the Islamic militant group. Saudi officials were quick to denounce these statements as those of "a deranged criminal whose own lawyers presented evidence that he was mentally incompetent," as he included some "extremely famous" Saudi officials as 'donors' during Osama bin Laden's tenure.

Everything that is broken with the US judicial system, explained with the help of two judges... and why nothing in this broken, corrupt system can ever be fixed until the grand reset finally sweeps every last remnant of the existing farce.

When Eric Holder announced his resignation, many breathed a sigh of relief thinking it can’t get much worse, but not so fast. The authoritarian streak and rampant cronyism of the Obama administration is a well oiled machine. You didn’t think you’d get off that easily did you? Enter Loretta Lynch.

• ECB to decide on bond-buying plan to revive euro zone (Reuters)
• Draghi Is Pushing Boundaries of Euro Region with QE Program (BBG)
• Investors Wonder Whether ECB Will Do Enough (WSJ)
• Treasuries Drop With Bunds Before ECB; U.S. Futures Rise (BBG)
• European shares hit seven-year high (Reuters)
• At least eight civilians killed in shelling of Ukrainian trolleybus (Reuters), both sides blame each other
• OPEC Will Blink First in Battle With Shale Drillers, Poll Shows (BBG)
• China Injects $8 Billion Into Banking System (WSJ)
• New York says Barclays not cooperating in 'dark pool' probe (Reuters)

The timidness with which mainstream media in the U.S. approaches news has been well documented. In fact, the inability of traditional media to do a reasonable job of holding powerful interests accountable has been one of the primary drivers behind the ascendency of alternative news. Despite this reality, one thing we know less about is specifically how the power structure goes about suppressing news it doesn’t want reaching the plebs. Until now...

When news broke of the death, by gunshot wound to the head, of Alberto Nisman - the prosecutor who was due within hours to deliver testimony implicating the Argentine President in covering up the investigation into a bombing in 1994 - it seemed oddly quick for police to rule it suicide within hours (especially after his earlier concerns that "I could end up dead because of this.") Today's news from The Buenos Aires Herald that the "unexpected result" of forensic analysis of Nisman’s body confirmed that there were no traces of gunpowder on his hands suggests (despite experts still proclaiming it does not rule out suicide) has prompted many questions over just how he died. Even the US has offered help... and protests are growing larger.

The Argentine prosecutor who accused President Cristina Fernandez of orchestrating a cover-up in the investigation of Iran over the 1994 bombing of a Jewish community center has, according to AP, been found dead in his apartment, authorities said on Monday. As The Times of Israel reports, Alberto Nisman, 51, was discovered, by his mother, in a pool of blood in the bathroom on Sunday night with a gunshot wound to the head, hours before he was set to testify before lawmakers on his accusations of the cover-up. Coincidence we are sure, but police are investigating and Argentinian media reported that they had initially ruled the death a likely suicide but we note that The Clarin daily reported just a few days earlier that Nisman had told the newspaper, "I could end up dead because of this," and in a separate TV interview, had also been considering increasing his security detail.

Thing is, that whole line about how lower oil prices were going to be a boost for our economies was ignorant from the start. And there’s still plenty people believing just that. That may explain those EU stock exchange gains. That sort of thing all comes from people who don’t understand to what extent oil is pivotal to our societies. We’re not in 2008 anymore, when an oil price drop actually helped us crawl out of a tight spot. We’re $50 trillion down the road, and there won’t be another $50 trillion, or another road. For all intents and purposes, we are the center today, and we cannot hold this way.

It will be even more disruptive if some among them decide that the only reason for the failure of their collective delusion of grandeur is that they have not been deluded enough and that even more wild-eyed palliatives are therefore needed. Disruption on such a scale is not what the budding entrepreneur wants to contend with as he contemplates whether to risk both his capital and his reputation in launching or expanding a business, in ordering new equipment, or hiring new staff and so fostering a meaningful recovery. Disruption on such a scale is not something we should wish to inflict upon a system we have been both unable and unwilling to fully repair. Either way – damned if they do, damned if they don’t – disruption seems to be what we will get in the months ahead.

Back in July it was all everyone could talk about: who shot down Malaysian Airlines flight MH-17 flying over east Ukraine? A hurriedly-prepared official report (by Western authorites) quickly put the blame on Russia, ignoring any suggestion the downing may have been the result of a Ukraine fighter jet, and said the catastrophe was the result of a Russian-made missile shot by Russian separatists. Then the story promptly disappeared. Russia, however, continued digging, and overnight, Russia’s Investigative Committee says it has uncovered evidence Ukraine was involved in the crash citing a military defector from the Ukraine.

A second senior airline industry source has revealed his belief that there is some sort of conspiracy behind the disappearance of Malaysia Airlines flight MH370. As The Herald Sun reports, Emirates president and CEO Sir Tim Clark made world headlines in October when he revealed his doubts about the fate of the missing plane, which disappeared early in the morning of March 8 this year. Now a second senior airline industry source has voiced his doubts about the fate of the plane, with the even wilder claim that the Boeing 777 may have been shot down by US military personnel who were fearing a September 11-style attack on the US Navy base on Diego Garcia.

Despite the authorities' best efforts to keep everything orderly, we know how this global Game of Geopolitical Tetris ends: "Players lose a typical game of Tetris when they can no longer keep up with the increasing speed, and the Tetriminos stack up to the top of the playing field. This is commonly referred to as topping out."

"I’m tired of being outraged!"

Let’s see. Between July 2007 and January 2009, the median US residential housing price plunged from $230k to $165k or by 30%. That must have been some kind of super “tax cut”.

The global oil price collapse now unfolding is not putting a single dime into the pockets of American households - the CNBC talking heads to the contrary notwithstanding.  What is happening is the vast flood of mispriced debt and capital, which flowed into the energy sector owning to the Fed’s lunatic ZIRP and QE policies, is now rapidly deflating. That will reduce bubble spending and investment, not add to economic growth. It’s the housing bust all over again.

HELLO ... MAINSTREAM MEDIA ... ANYONE HOME?