Saudi Arabia

In terms of economic might, BBVA has created an index of "world market power" enabling an at-a-glance view of a nation's impact on the global economy via relevance of exports, exposure to external shocks, technological content, and retained value-added. And the winner is... Hint, not USA...

You’ve probably heard about the recent leaked conversations involving Turkey. It was stunning to hear the highest-ranking Turks casually discussing how to provoke a false flag incident that would justify a large military intervention in Syria. This is a big deal because Turkish troops in Syria opens the door to NATO troops in Syria, which drastically expands the conflict. In case you didn’t know, a false flag is an incident that is designed to deceive people into thinking it was actually carried out by someone else. The same tactic is used by the world’s militaries and intelligence services to nefarious effect. Many believe the Reichstag fire incident that allowed Hitler to drastically expand his power was a false flag operation. So, why would the Turks propose doing such a thing in Syria?

Nothing like being close allies with one of the most despotic, Medieval and backwards societies on planet earth. Never forget, the USA brings democracy to the world! With the exception of puppet governments sitting on billions of barrels of oil reserves and disturbing ties to the 9/11 attacks. Those governments we love.

With Russia continuing to diplomatically assure the world that no invasion is pending, and rather comically asking for President Obama's benevolent aid in policing the treatment of Russians in non-Crimean Ukraine; it seems from all actions (as opposed to words) that Putin is pressing ahead with building his forces (up to 60,000) around the divided nation and as Dmitry Tymchuk notes, planning for invasion from Chernihiv to Donetsk. Internal politics continue to roil as Klitschko pulls out of the Presidential election (just as the US wanted) but we suspect the Ukrainians will be confused to discover their USA saviors have been spying on the future Premier Tymoshenko for years. The people of Ukraine are likely a little upset at We are sure Kerry and Lavrov will have plenty to discuss tomorrow in Paris and perhaps the following map will be a good starting point.

Lots of moves appear to be afoot on the macro front at the moment. Today's deal between the People’s Bank of China (PBOC) and Germany’s Bundesbank seems quite significant given the importance of Germany within the global economy generally and the E.U. specifically. And with that in mind, let’s not forget that Obama is currently in Saudi Arabia trying to restore ties with the Medieival Kingdom, i.e., he is trying to figure out a way to arm al-Qaeda in Syria without the American public finding out about it. It appears that becoming entrenched in a Syrian civil war is still very much on the table...  The months ahead should be very interesting to say the least.

Could the U.S. unleash a flood of oil from the strategic petroleum reserve that would drive down prices in order to punish Russia? While the idea has been kicked around over the last few weeks – most recently by George Soros – it has also been dismissed as not a serious option. Some say the impact of an oil sale, if it actually succeeded in lower prices, would be temporary. Saudi Arabia could cut back on production to keep oil prices at their current levels. Others decried the idea as contrary to the objective of the SPR, which has been setup to be used only in cases of emergency. However, any collusion would be a problem since the Saudi King is convinced the U.S. is “unreliable,” and relations between the two countries hit a low point after Obama’s back and forth over air strikes on Syria last year.

As the cost of living increases around the globe, wage protests and strikes have become commonplace, particularly in the emerging market space:

One would think that for all its demonization in the Western press, not to mention the countless comparisons to Hitler and/or the Antichrist, that Putin's Russia would be viewed relatively negatively especially in that bastion of western thought: Britain. Yes, perhaps: it certainly doesn't have a sterling image. However what is remarkableis that depite recent events in the Crimea, Britons still see Russia in a more positive light than the European Union, despite recent tensions with Moscow over Ukraine, according to a poll published on Saturday. Perhaps this is not surprising, because as AFP reports, voters in Britain are also equally divided about whether to remain in the 28-member bloc, a subject on which Prime Minister David Cameron has promised a referendum in 2017 and which is the reason for the blistering ascent in popularity of such political parties as the UKIP. The league table of 27 "liked" countries and institutions put the European Parliament -- for which elections are being held in May -- sixth from bottom, and the EU fourth from bottom.

Since the early twentieth century, Saudi Arabia has enjoyed a close relationship with the United States. From the development of the Saudi oil fields,to the First Gulf War, this relationship has been an uneasy cooperation—each side received something out of the alliance while nervously watching the other.  So recently we have the first open break between the two powers culminating in the Saudi’s refusing a seat on the U.N Security Council due to anger with U.S. Middle Eastern policies. It is foolish for America to offend and promote distrust with another ally in a long list of broken long-standing relationships.  These include Poland, United Kingdom, Israel, Egypt, etc.  One wonders whether the results of American diplomacy  stems from extreme incompetence or is evidence of a much darker agenda.

The Idiot Savant has had more than enough.  BDI has unequivocally decided to prick Big Bad Ben Bernanke's Bloviated Bubble Butt.  I have outlined below seven fine needles and six sharp scalpels that I shall use to slice and slay his sorry sagging ass:

Veteran Investor Jim Sinclair Says That If Russia Accepts Payment For Oil And Gas In Any Currency Other Than The Dollar – Whether It’s Gold, The Euro, The Ruble, The Rupee, Or Anything Else – Then The U.S. Petrodollar System Will Collapse

“The risk of catastrophe will be very high. The nation could erupt into insurrection or civil violence, crack up geographically, or succumb to authoritarian rule. If there is a war, it is likely to be one of maximum risk and effort – in other words, a total war. Every Fourth Turning has registered an upward ratchet in the technology of destruction, and in mankind’s willingness to use it.”

The core elements of this Fourth Turning continue to propel this Crisis: debt, civic decay, global disorder. Central bankers, politicians, and government bureaucrats have been able to fashion the illusion of recovery and return to normalcy, but their “solutions” are nothing more than smoke and mirrors exacerbating the next bloodier violent stage of this Fourth Turning. The emergencies will become increasingly dire, triggering unforeseen reactions and unintended consequences. The civic fabric of our society will be torn asunder.   

The UAE, Saudi Arabia and Bahrain said on Wednesday they were withdrawing their ambassadors from Qatar after it had not implemented an agreement among Gulf Arab countries not to interfere in each others' internal affairs. The move, unprecedented in the 30-year history of the Gulf Cooperation Council (GCC), follows the Bahrain state minister for information Samira Rajab saying she has evidence of Qatari media provocation against her country. As Gulf News reports, Qatar has been a maverick in the region, backing Islamist groups in Egypt, Syria and elsewhere in the Middle East that are viewed with suspicion or outright hostility by some fellow GCC members. Not a good sign for the oil-generating center of the world.

Dispassionate analysis of Russia/Crimea and the threat of Russia dumping its dollar holdings.  Much posturing.  Many point to US bluster have tough time identifying Russia's bluster.  Let me help.  

Since Ukraine is the only wildcard variable in the news these past few days, it was to be expected that following i) the end of the large Russian military drill begun two weeks ago and ii) a press conference by Putin in which he toned down the war rhetoric, even if he did not actually say anything indicating Russia will difuse the tension, futures have soared and have retraced all their losses from yesterday. And not only in the US - European equity indices gapped higher at the open this morning in reaction to reports that Russian President Putin has ordered troops engaged in military exercises to return to their bases. Consequent broad based reduction in risk premia built up over the past few sessions meant that in spite of looming risk events (ECB, BoE policy meetings and NFP release this Friday), Bund also failed to close the opening gap lower. At the same time, USD/JPY and EUR/CHF benefited as the recent flight to quality sentiment was reversed, with energy and precious metal prices also coming off overnight highs.