What scares me about the Clash of Civilizations is that the three leaders of the three biggest civilizations – the US (Western), China (Sinic), and Russia (Orthodox) – will misplay their hands and take on another civilization directly or, worse, take on each other, and that will vaporize the Narrative of Central Bank Omnipotence in a nanosecond. The existential risk here for markets is not that China/Russia/Europe/America might “collapse”, whatever that means. No, the existential risk is that the great civilizations of the world will be “hollowed out” internally, so that the process of managing the ten thousand year old competition between civilizations devolves into an unstable game of pandering to domestic crowds rather than a stable equilibrium of balance of power.
The Christmas Truce in 1914 showed that, given the choice, people do not want to be out fighting and killing each other. While The Truce was joyous for the soldiers, it was dangerous for the political leadership on both sides. Simply put, our efforts must be focused on opposing all war propaganda perpetrated by governments against the will of the people.
Following a reported "minor" accident three weeks ago, Ukraine's Zaporizhia nuclear power plant, Europe's largest and the 5th biggest in the world, was shutdown. The 'glitch' it appears has reoccurred as RT reports, one of the reactors at the Zaporizhia Nuclear Power Plant has automatically shut down. Causes are still being investigated.
Joseph Goebbels had nothing on US and European media today.
That propaganda as a strategic and political instrument has been refined to a huge extent over the past 70-odd years since Goebbels first picked up on Freud’s lessons on how to influence the unconscious mind, and the ‘mass-mind’, as a way to ‘steer’ an entire people, not just as a means to make them buy detergent. These days, the media can make people believe just about anything, and they have the added benefit that they can pose as friends of the people, not the enemy. But there is a reason why such a large ‘industry’ has developed on the web with people writing articles that don’t say what the mass media say. That reason for is, obviously, first and foremost that not everybody believes whatever they are told. The problem is equally obvious: not nearly enough people are being reached to make a true difference, and to question the official narratives.
The entire world is watching Putin play poker with the Western politicians lead by Obama and followed by Washington quislings in London, Brussels and Berlin. America's goal since the end of the Cold War has been to weaken by financial, economic and, if necessary, military means any real competition to its global financial and resource domination through the petrodollar and dollar world reserve currency status. We hope Putin realizes the US is not playing games here, as this is a financial and strategic game to the death for Washington and it's Western allies that have foolishly followed the Goldman Sachs/central banking cartel's deadly sovereign debt recipe and for growth and prosperity. The time is up; the debts can never be repaid and sooner or later must be repudiated one way or the other.
60 Prominent Germans Appeal Against Another War In Europe: "It Is Not About Putin. What Is At Stake Is Europe"Submitted by Tyler Durden on 12/26/2014 21:22 -0500
Two weeks ago, as the S&P was preparing to surge on the latest round of all time high market-goosing algo trickery by the FOMC, 60 prominent German personalities from the realms of politics, economics, culture and the media were less concerned with blinking red and green stock quotes and were focused on something far more serious to the future of the world: the threat of war with Russia. In a letter published by Die Zeit, numerous famous and respected Germans including a former president and former prime minister write "Wieder Krieg in Europa? Nicht in unserem Namen!", or, roughly translated, "War in Europe Again? Not in Our Names!" As the signatories note: "It is not about Putin. Heads of state come and go. What is at stake is Europe."
There was some expectation following the loud public response following Ukraine's shut down of power to Crimea on Christmas Eve, that Kiev would treat the territory which it alleges is still part of Ukraine as, well, part of Ukraine. And sure enough, a few hours after the regionwide blackout was first reported, Ukraine restored power. Until today, when moments ago we learned that not only did Ukraine cut off electricity to Crimea earlier today, but also halted train services, moves which, according to the WSJ, could raise tensions with Russia, but which also will harden the local popluation's pro-Russian determination even further. Crimea’s Fuel and Energy Minister Sergei Egorov told Russia’s Interfax news agency that power was cut off at 1:50 p.m. Friday without warning. He said backup diesel generators and mobile turbine power plants were supplying critical infrastructure with electricity.
Last week, after the unanimous passage of the Ukraine Freedom Support Act of 2014 in Congress we wrote that "World Awaits Russian Response As Obama Makes "Lethal Aid" To Ukraine Legal." We didn't have long to wait: one short hour ago, Putin adopted an updated version of its military doctrine, which "reflects the emergence of new threats against its national security" and which names both the NATO military buildup on Russia's borders, as well as the US and the destabilized situation in some regions (read Ukraine) as the main foreign threats to Russian security. The doctrine update also, for the first time, put protection of Russian national interest in the Arctic (read oil and nat gas) among the key priorities for Russia's armed forces. In other words, Putin is not only not backing down, but has once again explicitly warned NATO that any western action, either in Ukraine or elsewhere, will have a proportional response.
Chinese Stocks Soar To 4 Year High On Stimulus Hopes As Japan's Economy Implodes; US Futures ReboundSubmitted by Tyler Durden on 12/26/2014 07:08 -0500
One group of Federal workers that is definitely not taking the day off, is the trading desk located on the 9th floor of the New York Fed, responsible for such things as preserving the "fair" value of the bond and the stock market and avoiding any sharp downward moves. Because if there is one thing on the "national security" agenda that must be avoided at all costs, it is a drop in the S&P in today's trading session - after all now is when the official Santa rally begins and judging by the futures, which after a steep selloff in the last minute of trading on Wednesday have restored all their losses and then some, we may finally hit Goldman's year end target of 2100, for 2015.
2014 was quite a bizarre year. The past 12 months brought us MH370, Ebola, civil war in Ukraine, civil unrest in Ferguson, the rise of ISIS and the fall of the Democrats in the midterm elections. Our world is becoming crazier and more unstable with each passing day, and we have a feeling that things are going to accelerate greatly in 2015... despite record-er-est US stock prices.
The oil price drop that has dominated the headlines in recent weeks has been framed almost exclusively in terms of oil market economics, with most media outlets blaming Saudi Arabia, through its OPEC Trojan horse, for driving down the price, thus causing serious damage to the world's major oil exporters – most notably Russia. While the market explanation is partially true, it is simplistic, and fails to address key geopolitical pressure points in the Middle East.
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.
While Ukraine continues to plead with the international community that the Russian annexation of Crimea is illegal and against all international norms and directives, and just after it voted to end its non-aligned status and work towards Nato membership, a move Russia's Foreign Minister Sergei Lavrov called "counterproductive" and said it would boost tensions, overnight Kiev had little problems with leaving "its" population in the Black Sea peninsula in the dark on Christmas eve.
- Russia says NATO turning Ukraine into 'frontline of confrontation' (Reuters)
- Oil Drillers Under Pressure to Scrap Rigs to Cope With Downturn (BBG)
- Demonstrators Defy NYC Mayor's Call to Suspend Police Protests (BBG)
- U.S. to send more private contractors to Iraq (Reuters)
- ISIS Shoots Down Jet From U.S.-Led Coalition, Syrian Monitors Say (NYT)
- Russians Race to Secure Mortgages Before Costs Spiral (BBG)
- Abe Brings in Former Soldier Nakatani as Defense Minister (BBG)
- At Coke, Newest Flavor Is Austerity (WSJ)
- Fear and retribution in Xi's corruption purge (Reuters)
- UBS Raises Flag on China’s $1 Trillion Overseas Debt Pile (BBG)
From no greater laureate than UBS' NYSE Floor director Art Cashin... the year behind us (and the one ahead) in rhythmic narrative.