- Crimean parliament votes to secede from Ukraine
- Obama tells Putin: sanctions for ‘violation of sovereignty’
- German chancellor Angela Merkel: ‘We’re ready to act’
The United States and the European Union on Thursday unveiled sanctions to punish Russia for occupying Crimea, imposing visa restrictions on individuals and sharpening rhetoric in what has rapidly degenerated into the worst east-west crisis since the end of the cold war.
In their first concrete response to Russia’s move to wrest the Black Sea peninsula from Ukraine, Washington and Brussels also warned of further sanctions, such as asset seizures, if Moscow does not relent in the stand-off. Continue reading
A grave mistake is to think that this can’t happen or won’t happen, or that the Russians don’t have the capability. China and Russia have both publicly expressed their unity against the USA and the EU after engineering the chaos running through the Ukraine at this moment. Previously they’ve always been united behind scenes, but as they both grow and advance militarily, economically and politically they can be out in the open about it — especially now that they have been given cause.
China has also previously threatened the ‘nuclear option’ on the US Dollar. For additional information, read the following article: China threatens ‘nuclear option’ of dollar sales
The USA, which is drunk off its own power, becoming more corrupt daily and rotting from within might have to face a grave and sobering reality — and sooner rather than later. America is not untouchable.
Europe also faces the same fate as the Heizung can be turned off at any given moment. You’ll also likely see a united Europe like never before as a result, unlike America where its current administration keeps drawing a new line in the sand each time it back-peddles.
Moscow (AFP) – Russia could reduce to zero its economic dependency on the United States if Washington agreed sanctions against Moscow over Ukraine, a Kremlin aide said on Tuesday, warning that the American financial system faced a “crash” if this happened.
“We would find a way not just to reduce our dependency on the United States to zero but to emerge from those sanctions with great benefits for ourselves,” said Kremlin economic aide Sergei Glazyev.
He told the RIA Novosti news agency Russia could stop using dollars for international transactions and create its own payment system using its “wonderful trade and economic relations with our partners in the East and South.”
Russian firms and banks would also not return loans from American financial institutions, he said.
“An attempt to announce sanctions would end in a crash for the financial system of the United States, which would cause the end of the domination of the United States in the global financial system,” he added. Continue reading
BERLIN/KIEV/BERN (Own report) – In the aftermath of the Western-oriented putsch in Kiev, German politicians are preparing German public opinion for the disastrous deterioration of the Ukraine economic situation. Even though it was most recently suggested that the country could only expect a thriving development by linking up to the EU, it is now – truthfully – being announced that Ukraine is practically bankrupt. The CDU European parliamentarian, Elmar Brok, predicts “difficult times” ahead: “It has never rained gold coins, except in fairy tales.” In fact back in the fall, experts had already indicated that, because of its out-dated industry, the Ukraine would have to expect dramatic economic slumps if it signs the EU Association Agreements – unemployment and poverty would dramatically rise. In a position paper, the Berlin-based German Institute for International and Security Affairs (SWP) is now proposing the introduction of a special status in EU ties for the Ukraine as well as other countries, such as Turkey. This sort of EU “second ring” would also permit the economic integration of such countries as Switzerland, which politically resists joining the EU. The SWP contends that these plans could also be used for Catalonia, should it secede from Spain and Scotland, from Britain. Continue reading
(Reuters) – Deutsche Bank has laid out plans to reduce its U.S. balance sheet as the U.S. Federal Reserve adopts new rules to shield the country’s taxpayers from costly bailouts, the Financial Times reported on Sunday.
The lender is expected to reduce its $400 billion balance sheet in the United States to around $300 billion in part by reassigning operations such as its Mexican arm and its Frankfurt and Tokyo-based repo businesses that are currently part of its U.S. business elsewhere, the FT reported. Continue reading
China reduced its holdings of US Treasury debt in December by the most in two years as the Federal Reserve announced plans to slow asset purchases.
US government bonds held by China – the biggest US creditor – fell by US$47.8 billion, or 3.6 per cent, to US$1.27 trillion, the largest decline since December 2011, Department of the Treasury data released on Tuesday shows. At the same time, international investors increased holdings by 1.4 per cent, or US$78 billion, in December, pushing foreign holdings to a record US$5.79 trillion. Continue reading
Combine this with Bank of America’s warning that “the US Dollar is in trouble” and you can see that the cliff America is heading towards without brakes isn’t too far away.
While we will have more to say about the disastrous December TIC data shortly, which was released early today, and which showed a dramatic plunge in foreign purchases of US securities in December – the month when the S&P soared to all time highs and when everyone was panicking about the 3% barrier in the 10 Year being breached and resulting in a selloff in Tsy paper – one thing stands out. The chart below shows holdings of Chinese Treasurys (pending revision of course, as the Treasury department is quite fond of ajdusting this data series with annual regularity): in a nutshell, Chinese Treasury holdings plunged by the most in two years, after China offloaded some $48 billion in paper, bringing its total to only $1268.9 billion, down from $1316.7 billion, and back to a level last seen in March 2013! Continue reading
A host of Ethiopian army commanders have voiced their readiness to protect the country’s multibillion-dollar hydroelectric dam project, currently at the heart of a major row with Cairo due to Egyptian fears the dam could threaten its traditional share of Nile water.
State-run television reported that military commanders had visited the project site, during which they had voiced their readiness to “pay the price” to protect the dam, which they described as a “national project.”
According to state television, the visit – the first by military commanders to the site – came as part of activities marking Ethiopia’s Army Day. Continue reading
BERLIN (Reuters) – German Chancellor Angela Merkel said on Saturday she would talk to French President Francois Hollande about building up a European communication network to avoid emails and other data passing through the United States.
Merkel said in her weekly podcast that she disapproved of companies such as Google and Facebook basing their operations in countries with low levels of data protection while being active in countries such as Germany with high data protection. Continue reading
The project to impose political union is bringing economic ruin, making the legitimacy of the EU project ever more vulnerable
On the face of it, they seem worlds apart. Switzerland’s referendum vote against the free movement of labour, the ruling by the German Constitutional Court on the European Central Bank’s (ECB) attempts to save the euro, and the warning to Scotland that it won’t be allowed to keep the pound if it votes for independence – these might seem unrelated, but in truth they are all part of an increasingly explosive stand-off between the forces of national sovereignty on the one hand, and political and economic integration on the other. Continue reading
The savings of the European Union’s 500 million citizens could be used to fund long-term investments to boost the economy and help plug the gap left by banks since the financial crisis, an EU document says.
The EU is looking for ways to wean the 28-country bloc from its heavy reliance on bank financing and find other means of funding small companies, infrastructure projects and other investment. Continue reading
The European Union will push for diminished U.S. influence on Internet governance because of “loss of confidence” in the current U.S.-centric model, according to a news report.
The European Commission, the executive arm of the E.U., is set Wednesday to propose a series of steps to globalize Internet governance functions, reported The Wall Street Journal, citing an E.U. draft policy paper. The proposal is sparked by revelations of mass U.S. surveillance activities online, the newspaper said. Continue reading