White House

For the second consecutive day, Bashar al-Assad pounded ISIS targets across Syria on Friday, serving notice that Russia's stepped up "technical" and "logistical" support may have turned the tide in the country's four-year civil war. With Moscow having called Washington's bluff, Obama instructs Defense Secretary Ashton Carter to liaise with the Russian military while in Tehran, Major General Qassem Soleimani lays bare America's ISIS strategy.

Ordinary Americans frequently ask why politicians and government officials appear to be so obtuse, rarely recognizing what is actually occurring in the country. That is partly due to the fact that the political class lives in a bubble of its own creation, but it might also be because many of America’s leaders actually accept that there is an unelected, unappointed, and unaccountable presence within the system that actually manages what is taking place behind the scenes. That would be the American deep state. America’s deep state is completely corrupt: it exists to sell out the public interest, and includes both major political parties as well as government officials.

As NY Times reports, "though the administration has long said that President Bashar al-Assad must go for there to be a durable solution to the Syria crisis, Mr. Kerry seemed on Friday to allow for the possibility that Mr. Assad might remain in power in the short term. Mr. Assad has had Russia’s backing throughout the conflict."

Blankfein's biggest nightmare? "The image of Trump "with his finger on the button blows my mind," he added, drawing laughter from the audience." Surely a far scarier prospect for Blankfein and his peers is coming to Washington after the next crash and demanding another bailout, and coming back empty handed.

Here's the American Disease in a nutshell: entitlement and power means you never have to apologize for anything. Public relations might require a grudging, insincere quasi-apology, but the person with power can't evince humility or shame--he or she doesn't have any. What the American with power does have in nearly limitless abundance is a grandiose yet unacknowledged sense of entitlement and a volcanic sense of indignation.

America Wanted War … Not a Negotiated Peace

Chinese equity markets are holding modest 'bounce' gains after two days of carnage. After 3 days of stronger fixes PBOC devalued the Yuan but the Ministry of Finance made it clear that "devaluation is not aimed at boosting exports," which makes us wonder, is it aimed at selling Treasuries? No additional direct liquidity injections but anxiety grows as China National Erzhong Group Co. may miss an interest payment later this month after one of its creditors filed a restructuring request, putting it at risk of becoming the second state-owned company to default in the nation’s onshore bond market.

"Countries need to put aside geopolitical ambitions [and] direct or indirect use of terrorist groups to achieve goals that include regime change, in order to counter the threat of Islamic State. Elementary common sense responsibility for global and regional security demands the collective effort of the international community."

News That Matters

According to 'PredictIt' - the new InTrade - Jeb Bush remains the bookies favorite to get the Republican presidential nomination. The Donald is ranked 3rd in the betting (after Rubio) where a 23c bet will win $1 if Trump gets the nod. Trump is not a total "loser" though as he is odds-on favorite to get the most speaking time in the forthcoming CNN debates. Surveys and Polls are fickle, so follow the money... Clinton is the clear "money" favorite for The White House...

Well that escalated quickly... WTI back to a $43 handle again as The White House comments that it does not support The House bill to lift a ban on crude exports. Reuters reports that The White House says The Commerce Department should make the policy decision.