Ukraine

Even as Russia has officially deployed its military to the Ukraine, its unofficial involvement in The Crimean was well known for days. A much more notable development would be if protesters in the pro-Russian eastern part of the country were to seize control of the second largest city in the Ukraine, Kharkiv, located just miles from the Russian border as this would quickly give Russia a foothold into the east of the nation with the tactical escalation abilities such a takeover would entail. Which is why the following clip of pro-Russian protesters storming the city administration in Kharkiv is of importance: should Ukraine lose control of the city, or is forced to use troops against the people, it would be just the pretext Russia needs to "defend" citizens in this part of the country, the same argument it used for military intervention in the Crimean.

All the dominoes are tumbling now. Moments after the Russian upper house of parliament approved the decision to use Russian troops in the Ukraine as expected, Ukraine's acting president called an emergency meeting of security chiefs according to his spokeswoman. Oleksander Turchinov summoned his Security Council after Russian President Vladimir Putin sought parliamentary approval to deploy Russian forces in the Ukrainian region of Crimea. At this point the biggest and perhaps final wildcard is whether NATO does or does not get involved. If it does, and if Russia does not back off - which it has clearly telegraphed it won't - futures may be looking at a limit down open on Sunday.

Current US foreign policy in a nutshell: Barack Obama tells Vladimir Putin "there will be costs" if Russia invades Ukraine. What does Putin do? He invades Ukraine. Only this time it's official: AP reports that the Kremlin says Russian President Vladimir Putin has asked parliament for permission to use the country's military in Ukraine. Putin says the move is needed to protect ethnic Russians and the personnel of a Russian military base in Ukraine's strategic region of Crimea. RIA further adds, the military use is virtually assured as it was leaders of Russia’s upper and lower houses of parliament who first called Saturday on President Vladimir Putin to stabilize the situation in Crimea and protect Russian citizens.  The leader of Federation Council, Russia’s upper house, said the use of military force in the former Soviet nation could be justified after the opposition swept into power in Kiev last weekend.

A weekly technical outlook for the major currencies.

Everyone is curious who those unmarked men in unforms that have been seen in youtube clips from the Crimea are. Courtesy of Russian blogger Lev Shlosberg who writes for the newspaper Pskovskaya Guberniya, we now have an answer: according to him they are the officers of the 76th Chernihov (Pskov) Storm Troops Division and have slowly dispersed across key choke points in Ukraine.

Well that was quick:

• OBAMA SAYS ‘DEEPLY CONCERNED’ BY RUSSIAN MILITARY MOVEMENTS
• OBAMA SAYS "THERE WILL BE COSTS" FOR MILITARY INTERVENTION IN UKRAINE
• OBAMA SAYS "UKRAINE PEOPLE DESERVE THE OPPORTUNITY TO DETERMINE THEIR OWN FUTURE"
• OBAMA SAYS HE COMMENDS RESTRAINT OF UKRAINIAN GOVERNMENT
• OBAMA SAYS BIDEN HAS SPOKEN WITH PRIME MINISTER OF UKRAINE
• OBAMA SAYS U.S. SUPPORTS UKRANIAN SOVERIGNTY

And... that's it: no statement on what if anything the US will do if Russia keeps its presence there and continues piling troops and equipment.

With the Ukraine now openly appealing to the world to halt what in its own words is a Russian invasion, it only made sense that after the bigger than expected downward revision to Q4 GDP, and the miss in Pending Home Sales, that the S&P would close at a new all time high

But... hadn't this brilliant, vacuum-tube controlled market priced in every possible Ukraine contingency? Or maybe the GDP miss wasn't bad enough?

Here we go:

2,000 RUSSIAN SOLDIERS LAND IN CRIMEA IN ARMED INVASION, KIEV OFFICIAL SAYS -- AFP
UKRAINE ACTING PRESIDENT TURCHYNOV STARTS BRIEFING
UKRAINE LEADER SAYS RUSSIA STARTS AGGRESSION AGAINST COUNTRY
UKRAINE SAYS RUSSIA INVADED UKRAINE UNDER GUISE OF EXERCISE

At the same time, Ukraine Pravda is reporting that Russian military planes are now landing in the Crimea

With the UN Security council set to meet in a closed-door session at 3 pm and discuss the ongoing crisis in the Ukraine, here are all the latest news out of the Crimean, where so far things have been tense if without violence.

Why is the periphery crumbling? It's simple: the conditions that enabled rising national surpluses and the distribution of spoils is breaking down for three reasons:

1. Energy is no longer cheap (compared to past prices)
2. The low-hanging fruit of higher productivity has all been plucked
3. The free-money flood of cheap, limitless credit is drying up

As regimes find surplus and credit are both contracting, their ability to placate every key group with spoils is also declining, and the conflicts between them can no longer be patched over with bribery or brutality. Instability starts on the periphery and moves into the core.

Yesterday we reported that as part of the Ukrainian central bank's plan to bailout the nation's largely insolvent private banks, it would provide any needed funding but only "if they will remain under open control of the National Bank of Ukraine." And since the new CB head Stepan Kubiv's allegiance to Europe were already well-known, this was merely a quick and efficient way of providing Europe with all the banking details including asset holdings of the local population. Today, the annexation of the country's banking system by a "benevolent" Europe is complete. Itar-Tass reports that Ukraine's national bank has imposed temporary limits to withdraw money from foreign currency deposits to sums equivalent to no more than 15,000 hryvnias (about $1,500) a day, National Bank Chief Stepan Kubiv told a press conference. Or, as the citizens of Cyprus call it - capital controls.

"If you have physical gold or silver, you are in a golden position,” Celente said. Despite the many risks of today, Celente saw light at the end of the tunnel. He said that there are opportunities in “clean food”, breakthrough alternative energy, alternative medicine and in digital education and internet learning.

The long awated press conference has begun. Here are the highlights:

YANUKOVICH BLAMES WEST FOR IRRESPONSIBLE CONDUCT
YANUKOVICH CALLS FOR UKRAINE REFERENDUM ABOUT GOVERNMENT ORDER
YANUKOVYCH SAYS PRESIDENTIAL ELECTIONS SHOULD BE IN DECEMBER
YANUKOVICH SAYS POWER IN UKRAINE WAS SEIZED BY "PRO-FASCIST" FORCES

• Yuan suffers biggest weekly loss as PBOC punishes speculators (Reuters)
• Euro Gains as Bonds Decline With Stocks on Inflation Data (BBG)
• Biggest Sovereign Fund Forced to Sell Stocks as Mandate Breached (BBG)
• Because we don't already have enough fried foods.. (Reuters)
• Putin: Russia to Consider Aid to Ukraine (AP)
• Wall Street Hates JPMorgan Fee for $1 Trillion Junk Loans (BBG)
• Yellen Sticks to Plan Amid Weather Doubts (WSJ)
• U.S. Retail Chains See First Profit Decline Since Recession (BBG)