European Union

The EU issued a press release this morning which could perhaps be summed up in 2 words - "not fair." Following the denial-of-entry by Russia of several EU politicians, Russia has released a list of 89 names who will face travel bans - of exactly the same type as EU and US enforced upon numerous Russian elites. Europe is displeased that Russia would dare do unto them as they have done unto others... "we deem this measure as totally arbitrary and unjustified," they exclaimed, adding, "we don’t have any further information on the legal basis or the criteria or the process of these decisions."

There is always a way out for Greece. But at what cost?

There are many things going on in the Greece vs Institutions+Germany negotiations, and many more on the fringe of the talks, with opinions being vented left and right, not least of all in the media, often driven more by a particular agenda than by facts or know-how. What most fail to acknowledge is to what extent the position of the creditor institutions is powered by economic religion...

Representatives from the European Union recently closed out a summit in Riga to decide the future of EU visa policy with respect to Ukraine. Once again, Ukraine was denied visa-free access to the EU, proving that “European support” for Ukraine against Russia is just hot air and empty promises. There are, however, 19 other countries, which will be joining the EU visa-free list as of July 1, 2015.

With French ministers crowing about their better-than-expected GDP data (+0.7%) as some trend reversal that heralds a revolution, it appears Vladimir Putin is about to put a dent in their hopes and dreams. As Sputnik News reports, Moscow has finally given up on the $1.3 billion deal for two Mistral-class helicopter carriers and plans to build its own. Even worse for France, now Russia will discuss only the sum that Paris should pay Russia for the failed contract. However, as with everything in the world, there may be aulterior motive, as China comes sniffing as a white knight for the amphibious vessels (at a reduced price) and then sells to its 'ally' Russia (who has already pocketed the contract cancellation fees).

There has to be a very clear line between central banks and governments. The latter should never be able to influence the former, because it would risk making economic policy serve only short term interests (until the next election). Likewise the former should stay out of the latter’s decisions, because that would tend to make political processes skewed disproportionally towards finance and the economy, at the potential cost of other interests in a society. This may sound idealistic and out of sync with the present day reality, but if it does, that does not bode well. It’s dangerous to play fast and loose with the founding principles of individual countries, and perhaps even more with those of unions of sovereign nations.

The first rule of “Project Bookend” is that you don’t talk about “Project Bookend.” In retrospect, maybe the first rule should have been “you don’t accidentally e-mail ‘Project Bookend’ to a news agency.”

While admitting that reaching agreement between the two countries will be difficult to achieve, George Soros - speaking at The World Bank's Bretton Woods conference this week - warned that unless the U.S. makes 'major concessions' and allows China's currency to join the IMF's basket of currencies, "there is a real danger China will align itself with Russia politically and militarily, and then it is not an exaggeration to say that we are on the threshold of a third world war."

"German Finance Minister Wolfgang Schaeuble conceded the possibility that Greece may need a parallel currency alongside the euro if the country’s talks with creditors fail," Bloomberg reports. Meanwhile, "sideline" negotiations between Greek PM Tsipras and Angela Merkel breakdown in Riga.

• U.S. vows to continue patrols after China warns spy plane (Reuters)
• Bank of Japan Chief Cheers On Tokyo’s Surging Stocks (WSJ)
• Merkel Stamps Out Optimism on Greece After Tsipras Talks (BBG)
• Greece sees reforms deal with lenders in next 10 days (Reuters)
• Why Greece’s Syriza party is not sticking to the script on an IMF deal (Channel4)
• Why Does Putin Care Who Runs a Tiny Balkan Nation? Gas Pipelines (BBG)
• U.S. Stock-Index Futures Are Little Changed Before Yellen Speech (BBG)
• German Business Confidence Declines as Risks Cloud Outlook (BBG)

• Once-Unthinkable Criminal Pleas by U.S. Banks Get Investor ‘Meh’ (BBG)
• The E-Mail That Helped Catch Barclays: ‘ISDAfix Is Manipulated’ (BBG)
• CFTC Said Preparing ISDAfix Probe Talks in Weeks: Credit Markets (BBG)
• Islamic State takes control of Syria's Palmyra in westward advance (Reuters)
• Tensions High as Greece Gets Smallest Aid Rise Yet (BBG)
• The Rise of the $50,000 Rental (BBG)
• U.S. says South China Sea reclamations stoke instability (Reuters)
• First Hanergy Now Goldin: Hong Kong Stocks Drop Like Stones (BBG)

Bank of America advocates adding gold to one’s portfolio along with higher levels of cash. Citing factors such as liquidity, profits, technological disruption, regulation, and income inequality they say there exists a potential for a “cleansing drop in asset prices.”

"A senior government official says that among the proposals discussed with the eurozone and the International Monetary Fund is the imposition of a levy on bank transactions, whose exact rate will depend on the exemptions that would apply. The aim is to collect 300-600 million euros on a yearly basis," Kathimerini reports. Meanwhile, parliamentary speaker Nikos Filis has a message for the IMF.

• Clinton aides sometimes blocked release of documents requested under public-records law (WSJ)
• House Benghazi panel subpoenas former Clinton White House aide (Reuters)
• Cash Crunch, for Many, Is a Monthly Woe (WSJ)
• Doubts over Greece add to euro's ECB-driven frailty (Reuters)
• For Many American States, It's Like the Recession Never Ended (BBG)
• Japan debt plan needs BOJ to keep rates low for years (Reuters)
• Euro Continues to Fall; European Bonds, Stocks Broadly Steady (WSJ)
• Los Angeles gives preliminary approval to $15 minimum wage (Reuters)

Every Time We Look, We Find NEW Admissions of False Flag Terrorism