A few days ago, when we wrote our "explainer" on the need for Russia to have an alternative pathway for its gas, one which bypasses Ukraine entirely and as the current "South Stream" framework is set up, crosses the Black Sea and enters Bulgaria before passing Serbia and Hungary on the way to the Central European energy hub located in Baumgarten, Austria, we said that "one short month after Putin concluded the Holy Grail deal with Beijing, he not only managed to formalize his conquest of Europe's energy needs with yet another pipeline, one which completely bypasses Ukraine for numerous reasons but mostly one: call it a Plan B." Today we find just what said Plan B is. As Itar-Tass reports, citing Gazprom CEO Alexei Miller, "Russia’s gas giant Gazprom does not rule out gas transit via Ukraine may be stopped completely."
To: My Fellow Zillionaires - "You probably don’t know me, but like you I am one of those .01%ers, a proud and unapologetic capitalist. I have founded, co-founded and funded more than 30 companies across a range of industries - from itsy-bitsy ones like the night club I started in my 20s to giant ones like Amazon.com, for which I was the first nonfamily investor... But let’s speak frankly to each other. Seeing where things are headed is the essence of entrepreneurship. And what do I see in our future now? I see pitchforks... And so I have a message for my fellow filthy rich, for all of us who live in our gated bubble worlds: Wake up, people. It won’t last. If we don’t do something to fix the glaring inequities in this economy, the pitchforks are going to come for us."
China's own Big Apple may be rotting from the core. A new central business district modeled after New York City is going up in Tianjin but the project is in jeopardy. While the growth of China's ghost cities of entirely derelict and unlived-in residential real estate have become anathema; the story of the nation's 'if we build it they will come' commercial real estate bubble has been less exposed but is no less incredible. As Bloomberg reports, China’s project to build a replica Manhattan is taking shape against a backdrop of vacant office towers and unfinished hotels, underscoring the risks to a slowing economy from the nation’s unprecedented investment boom. Stunningly, the development has failed to attract tenants since the first building was finished in 2010 leaving one commercial real estate investor to proclaim, "Investing here won’t be better than throwing money into the water... There will be no way out - it will be very difficult to find the next buyer."
The Pentagon Has A Problem: "Vetting Moderate Al Qaeda Rebels Can Be Tough" - So Here Is A Simple Solution...Submitted by Tyler Durden on 06/27/2014 19:46 -0400
Moments ago, none other than the Pentagon's rear admiral John Kirby confirmed that there is a glaring problem with Obama's intentions to disburse $500 million to "moderate" Syrian rebels.
- KIRBY SAYS A LOT OF WORK NEEDED TO VET MODERATE SYRIAN REBELS
- KIRBY SAYS CONCERNED ABOUT AID `ENDING UP IN THE WRONG HANDS'
While we share his sentiment (which we doubt is much of a concern to the US MIC as it will merely provide one set of US-made weapons to destroy another set of US-made weapons), we repeat that there is a simple solution. It comes from Andy Borowitz, who appears to have read our mind, and is breathtakingly simple. Presenting: The Moderate Syrian Rebel Application Form.
Pundits enjoy pointing to NYSE margin debt as an indication of overall system leverage, and how prone to margin calls and liquidations the investor class may be at any given moment. However, in the new normal, in which sophsiticated investors fund themselves via completely different mechanism - mostly involving repo and other shadow banking conduits - margin debt has become a very much irrelevant indicator of overall leverage.
The proof is clear. According to SWIFT, China’s renminbi is now the second most used currency in the world for global trade settlement, putting it ahead of even the euro. It’s happening. And based on the data, it’s completely obvious (as we continued to chronicle) to just about everyone but the US government. However, we were still surprised to see an article in the Financial Times’ banking intelligence subsidiary (‘The Banker’) entitled "The US’s dollar domination is coming to an end." This reality has become obvious to just about everyone... Reserve currencies come and go. So will the dollar. This is nothing new.
The Real History of the American Strategy for Iraq and the Middle East
On a revised basis, initial claims dropped 2k this week but marginally missed expectations at 312k. This is the 4th week in a row of marginal misses - none of which were large enough to get to excited about but it appears the limit has been reached in this cycle. Continuing claims rose for only the 2nd time in 10 weeks.
Obamacare, the Stimulus, TARP, Fast and Furious, support of the Egyptian regime change, Libyan Leading from Behind, four American killed in Benghazi, blaming a video for the Benghazi attacks, the IRA targeting, NSA email and phone file storage, Syrian Red Line, the Russian takeover of Crimea, the VA handling of veterans, release of Taliban terrorists from Guantanamo, the onslaught of children crossing the Mexican border, two years of lost emails of the key IRS individual and now Iraq. I can’t imagine any previous U.S. President having so many scandals attributed to his administration and virtually none of them adequately answered or resolved.
One can almost smell the CapEx renaissance.... Any minute now.
Now that Eric Cantor is history, crushed by an unexpected Tea Party "David" (literally and metaphorically) as the US population finally begins to say no to an artifical "two-party" system which is quite united in only serving its Wall Street masters, it is time for that other republican, none other than the consummate folding lawn chair John Boehner, to scramble fearing for his own political career. And since the only way the GOP knows to challenge the implosion of the US republic is by making loud noises and providing hours of hollow theatrical entertainment, here comes Boehner with the biggest soap opera he could muster: moments ago the speaker announced he plans to sue Obama "on behalf of the House over his frequent use of executive actions that Republicans believe are beyond his authority."
Putin Scores Another Historic Victory: Austria Signs South Stream Pipeline Deal In Defiance Of EuropeSubmitted by Tyler Durden on 06/25/2014 07:23 -0400
In the great chess-vs-checkers game, Putin just keeps steamrolling his clueless opposition.
What is really going on in Iraq?