"Chances for a diplomatic solution to current geopolitical tensions appear slim. The irreconcilable characterizations inside and outside of Russia of current geopolitical stress lead us to believe that it is unlikely that understanding / compromise between political parties involved can be achieved via diplomacy," Soc Gen says, in a new note that outlines the current state of affairs in Russia.
As Moscow and Seoul throw their support behind China's Asian Infrastructure Investment Bank, the question is no longer about the end of dollar hegemony but rather about the extent to which the new venture will be used to institute a global shift towards the yuan.
Greek Energy Minister Slams "Unscrupulous, Imperialist" Germany, Will Seek "Bold Alternatives" In RussiaSubmitted by Tyler Durden on 03/28/2015 14:05 -0400
The Greek energy minister kicked the hornet's nest point blank earlier today when he said that "Greece is at more than breaking point; urgently needs big, bold alternatives to “German, incumbent Europe"and that "creditors behaving as unscrupulous imperialists towards distant colony, threatening submission or economic suffocation." More importantly, Lafazanis has some ideas where to find said "big, bold alternatives." In Moscow. Greece's Energy Minister Panagiotis Lafazanis will meet his Russian counterpart and the CEO of energy giant Gazprom in Moscow on Monday, as he hit out at the EU and Germany for tightening a 'noose' around the Greek economy.
Following Vladimir Putin's demands for an "immediate cessation of military activities" in Yemen, AFP reports Syrian President Bashar al-Assad's comment during a recent interview that "with complete confidence that we welcome any widening of the Russian presence in the eastern Mediterranean and on Syrian coasts and ports," including the port of Tartus. Amid the Western-backed opposition National Coalition's planned boycott of talks, Assad pointedly remarked, "the negotiating parties must be independent and must reflect what the Syrian people want... people would not accept that their future, their fate, or their rules are decided from outside."
Default Risk Soars After Ukraine's 'American' FinMin Suggests Severe Haircuts For Creditors (Including Russia)Submitted by Tyler Durden on 03/27/2015 08:18 -0400
Ukraine’s American Finance Minister has announced a broad restructuring plan with a wide range of severe haircuts for creditors, and she – well, obviously – wishes to include Russia in the group of creditors who are about to get their heads shaved. Russia sees the world as one in which multiple major powers can govern together. The US sees Russia as a power that must be defeated by any means necessary, and subdued. One of these worldviews must prevail in the end. Perhaps we won’t know which one that will be until the third power, China, raises its voice. What we do know is that Russia will back down only so far, and then it will no more.
Russia is once again ratcheting up the rhetoric, this time to a fever pitch. Just a day after Putin’s Security Council posted a remarkably accurate and amusingly concise assessment of US foreign policy aims on its website, a spokesman for the Russian Foreign Ministry as well as President Putin himself are out with strong condemnations of both the NATO presence in Eastern Europe as well as US plans to arm Kiev.
Yesterday, in a vote that largely slid under the radar, the House of Representatives passed a resolution urging Obama to send lethal aid to Ukraine, providing offensive, not just "defensive" weapons to the Ukraine army. The resolution passed with broad bipartisan support by a count of 348 to 48. Russia's response came promptly: Washington's decision to supply Ukraine with ammunition and weapons would “explode the whole situation” in eastern Ukraine and Russia would be forced to respond “appropriately,” Russia's Deputy Foreign Minister Sergey Ryabkov said at the end of February.“It would be a major blow to the Minsk agreements and would explode the whole situation,”
“Right now we are at the cusp," billionaire George Soros tells Bloomberg TV in this brief clip, the chances of Greece leaving the euro area are now 50-50 and the country could go "down the drain." The 84-year-old fears that talks between Greece and 'the institutions' could "break down," adding that "Greece is a long-festering problem that was mishandled from the beginning by all parties," concluding that the chances of Greece leaving the euro area are now 50-50 and the country could go "down the drain." Finally, Soros notes, what worries him the most is Ukraine.
We begin to understand why the death of Ferguson, Mo, teen Michael Brown sent such shock waves through America last year. He truly symbolized our country: an overgrown, oafish, wannabe thug making one bad choice after another until his final, suicidal lurch against authority — followed by all the exculpatory lying on his behalf: the “gentle giant,” hands up, don’t shoot! This is exactly how America acts on the world stage these days. We are the Michael Brown among nations, high on exceptionalism, stoned on entitlement, swaggering moronically from one place to another grabbing what we feel like, smashing things up as we go.
There’s only one thing that can save the Union now: for Merkel to show compassion, with the Greeks, and with all other weaker members. And to stop the anti-Greek propaganda, immediately. Or else. It’s nonsense to pretend that this is merely a business issue, as is made clear by Parenteau above: there is very clearly plenty space to negotiate solutions with Greece that preserve everyone’s dignity. Refuse that, and you can kiss the EU goodbye. There’s alot more that plays into this than mere money issues. Ignore that, and you might as well dismantle the Union right now.
While the distraction that is the stock market continues to enthrall most Americans, the big shots in the global monetary which for now are taking place behind the scenes, are getting ever louder. One person who is paying attention to the failure of the US to grasp that the unipolar world of the 1980s is long gone, is Russia's Vladimir Putin, who earlier today proposed creating a "Eurasian" currency union which would have Belarus and Kazakhstan as its first members, which already are Russia's partners in a political and economic union made up of former Soviet republics.
As the world continues its push towards de-dollarization, Washington responds to Russian military preparedness by conducting drills in Moscow's backyard.
News of an upcoming meeting between Tsipras and Putin comes just days ahead of EU Summit and a €2 billion debt repayment, suggesting Athens may be playing one of its few remaining cards.
The increasing ugliness of the ‘negotiations’ between the Greek Syriza government and the rest of the eurozone, which is ruled by the German government, needs to be halted and put in reverse. There is an urgent need for a detente, for cooler heads and for trust. And there is only one person who can act to create these things: Angela Merkel. But Merkel is nowhere to be found or seen. Merkel has been sorely lacking and missing, and if she doesn’t get her act together very quickly, she will be known as the person who let Europe slip into war, for no good reason whatsoever.
Russia Escalates Military Posture: Deploys Strategic Bombers To Crimea, Launches Massive Drills Across NationSubmitted by Tyler Durden on 03/17/2015 09:15 -0400
All those who were wondering where Putin had "disappeared" to, and spreading rumors whether it was more likely his girlfriend had given birth in Switzerland or aliens had abducted him, will probably be satisfied if he were to promptly disappear once more following news that not only yesterday had he put 40,000 troops on full alert as part of "snap-readiness exercises", but less than 24 hours followed this up with even more demonstrative military "drills" after Sputnik reported that Russian strategic Tu-22M3 (Backfire) strike bombers have been deployed to the Crimean Peninsula to hold snap combat readiness drills, a source in the Russian Defense Ministry said Tuesday, in addition to further massive troops and equipment deployment tests in the western part of the nation as well as around the Arctic circle.