White House

Eighty-two leading Democrats have cosponsored a House Resolution (H.Res. 569) "Condemning violence, bigotry, and hateful rhetoric towards Muslims in the United States". As of now, H.Res. 569 has been referred to the House Committee on the Judiciary. Americans had better hope that the House Committee will see it for what it is: An attempt to destroy the First Amendment, shield Islam from criticism, and bring "Death to Free Speech."

"He stopped studying and rented bouncy castles for children's parties while supporting banned militant group Al-Muhajiroun and running 'roadshows' aimed at attracting troubled youngsters in inner-cities"...

"The United States should do everything possible to avoid choosing sides in an intensifying proxy war between the dominant Shiite and Sunni powers in the Middle East. Though history tells us we should tilt toward Saudi Arabia, our old ally, if we look toward the future, Iran is the more logical partner. The reasons are simple: Iran’s security interests are closer to ours than Saudi Arabia’s are."

"We lack enough space in our stockpiles to house our missiles. Hundreds of long tunnels are full of missiles ready to fly to protect your integrity, independence and freedom. Those who threaten Iran with their military option on the table would better take a look at Iran’s ‘options under the table,’ namely the missile arsenals. Iran’s known military power is only the tip of the iceberg."

• Global share market settles after stormy start to year (Reuters)
• Stocks Extend Losses as Yen, Gold Rise on Lingering China Unease (BBG)
• China battles to shore up stocks, yuan after globe-shaking slide (Reuters)
• Volkswagen faces billions in penalties as U.S. sues for environment violations (Reuters)
• Obama tightens gun rules, requires more background checks (Reuters)

Earlier today, as Iranian police struggled to disperse protesters gathered outside the Saudi consulate in Mashhad, we said that Saudi Arabia and Iran may be on the verge of a historic diplomatic crisis after demonstrators burned the Saudi embassy in Tehran on Saturday evening. Sure enough, just hours later, Saudi Foreign Minister Adel Al-Ahmad Al-Jubeir announced that Riyadh has cut diplomatic ties with Tehran

"We believe that diplomatic engagement and direct conversations remain essential in working through differences and we will continue to urge leaders across the region to take affirmative steps to calm tensions," US officials said on Sunday on the heels of Saudi Arabia's decision to cut diplomatic ties with Iran following the execution of a prominent Shiite cleric and the firebombing of the Saudi embassy in Tehran. The response from Riyadh: "enough is enough."

"Lately, I must admit that my hostility towards your political ilk has ramped up, pretty dramatically...Everything that modern liberalism accomplishes is accomplished at the barrel of a government rifle...What angers me the most about you is the eagerness with which you allow the incremental enslavement to occur. I have the utmost respect for a slave who is continuously seeking a path to freedom. What I cannot stomach is a free man who is continuous seeking a path to servitude by willingly trading his freedom for the false sense of security that government will provide."

A new propaganda video from al-Qaeda's Somali affiliate al-Shabaab features clips of Donald Trump alongside the following warning from the late Anwar al-Awlaki: "There are ominous clouds gathering in your horizon. Yesterday, America was a land of slavery, segregation, lynching, and Ku Klux Klan. And tomorrow it will be a land of religious discrimination and concentration camps."

It would appear the people of Switzerland have been listening to their military leaders. Having recently been warned by the Swiss army chief of growing social unrest, SwissInfo reports applications for gun permits in Switzerland increased by 20% between 2014 and 2015, according to a survey conducted in 12 cantons. But while the army proposes "arm yourselves," Swiss crime prevention officials warn against the false sense of security that guns bring. And while the Swiss go about their legal business of arming themselves, President Obama is preparing to unleash another weapon - the executive order - to enact gun-control legislation.

The president has directed administration officials to explore any steps he could take on guns without lawmakers’ help, and he said in his weekly address that he would sit down with Ms. Lynch on Monday “to discuss our options.” Once he has Lynch's "blessing", the WSJ adds that Obama "could lay out multiple executive actions as soon as next week, and administration officials have confirmed that recommendations for the president are nearing completion."

"If the president’s announced sanctions ultimately aren’t executed, it would demonstrate a level of fecklessness that even the president hasn’t shown before."

Elections, elections, and more elections is the 'regime change' meme for 2016 but, as Bloomberg details, the key events of the year ahead vary from a California marijuana referendum to Brazil's Olympics, and from Davos to SCOTUS. No matter what, 2016 holds a lot of opportunity for volatility, and without The Fed's safety net, who knows what that means for markets...