Week 2

The purpose of this page is to provide frequent news updates to highlight some key initiatives which are happening on an ongoing basis.

10th August 2016

  • Deputy Prime Minister Dmitry Rogozin stated that Russia has delivered half of the S-300 surface-to-air missile systems to Iran in accordance with a weapon sales contract valued at about 900 million U.S. dollars. Russia is planning to complete the deliveries of the S-300 air defence systems to Iran by the end of 2016 as a wider aim to promote development, production and export of high-tech industrial products for civil and defence sectors. We are beginning to see this development in the wider context of the blossoming relationship between Russia, China and Iran. Expect to see Iran integrate further into the likes of the SCO. In addition we should start to see developments with regards to India who already have large arms agreements in place with Russia.
  • Mainstream media is beginning to acknowledge the failings of central bank monetary policy and the need for Gold to underpin a new financial paradigm. Quantitative easing and negative interest rates are now being recognised as destroying capital, distorting bond markets to breaking point, pumping stock markets to record highs and creating the largest financial bubble in history.
  • The decision to create a single currency without the institutions which would make it work was “fatal” for the eurozone, said Nobel-Prize winning economist Joseph Stiglitz, adding that the “eurozone must ditch it now to survive.”
  • Russian President Vladimir Putin and Turkish President Recep Tayyip Erdogan announced a joint decision to resume the projects of the Akkuyu nuclear power plant and the Turkish Stream gas pipeline. These deals come on the back of Russia tipping off Turkey about the Western back coup to remove Erdogan. This further ridicules the narrative that Russia is being isolation and demonstrates clearly that Turkey is rotating east and severing ties with Washington and its vassal status.

  • The debt bubble in the oil industry continues to grow and it has been reported today that levels have risen to around $110 billion in debt, most of it junk rated. We have seen 49 oil and gas sector companies default this year already in the US. Whilst it could be argued that some of the larger corporations can delay refinancing until economic conditions improve, this author believes that is unlikely in most cases. In the case of smaller organisations, interest repayments and capital expenditure requirements are likely to prove to be far more challenging and see widespread further defaults occurring in the coming months.
  • Turkey’s trade with Iran has increased 30 percent since the lifting of sanctions, Turkey’s Customs Minister Bulent Tufenkci said, adding that Iranian and Turkish companies were working on joint investments in other countries.
  • US nonfarm productivity fell in the second quarter, damaging corporate profits and organisation capability to hire staff. This metric which measures hourly output per worker, dropped at a 0.5 percent annual rate in this period and was the third consecutive quarterly decline, the longest such stretch since 1979.
  • The European Union has decided not to fine Spain and Portugal for failing to reach budget deficit cutting goals and instead has set ‘new fiscal paths’ for each country which undoubtedly implies more austerity. It remains to be seen how much long both of these nations will continue to tolerate such measures.
  • Net capital flight from Russia in the first six months of the year totaled $10.9 billion in a nearly fivefold dip from the same period last year, when it amounted to $53.3 billion. This is further indication of a stabilisation of the Russian economy after Western imposed sanctions were placed in relation to Ukraine.
  • Russian President Vladimir Putin and British PM Theresa May have agreed to meet to discuss a wide range of topics, from the economy to terrorism, hinting there is room for improvement in soured relations.This is another clear example of the UK rotating East and a realisation that it much cooperate with the likes of Russia and China in the new paradigm unfolding now.

11th August 2016

  • Tighter capital controls have failed to weaken China’s appetite for overseas investment. Although the Chinese authorities have taken steps to constrain legal and illegal outflows over the past 12 months, 57% of Chinese outbound investors believe they will allocate more of their liquid wealth overseas in the coming two years.
  • Russian Tu-22M3 strategic bombers have destroyed an Islamic State chemical weapons factory with airstrikes around the terrorist stronghold Raqqa in Syria.
  • It is believed that US Public Pensions are in deficit by as much as $8 Trillion.
  • Gold analyst Frank Holmes believes that peak gold may have happened in 2015. The notion that total annual global gold production is likely to have peaked should positively impact the price of Gold.
  • Bank of Tokyo-Mitsubishi UFJ has formally left its role as a primary dealer of Japanese government bonds in a move that reflects the lender’s heightened sense of risk over a possible crash in the Japanese Government Bond (JGB) market.
  • An agreement to construct the third stage of India’s Kudankulam nuclear power plant is expected by year end according to Russian President Vladimir Putin.
  • Rosneft increased natural gas production by 6.9 percent year-on-year in the first half of 2016, to 33.2 billion cubic metres
  • Tehran has regained its pre-sanctions share of the global oil market exporting 2.5 million barrels per day.
  • A leaked report suggests British military leaders are deeply concerned about Russia’s military capabilities, However this leak is being questioned given such sources of information have previously been used to justify increased military expenditure.
  • China sees the British government’s postponing approval of the 18 billion pound Hinkley Point nuclear plant as ‘a test of mutual trust’.
  • Brazil’s Senate voted 59 to 21 to uphold charges that President Dilma Rousseff mismanaged the federal budget and broke fiscal policy rules during her re-election campaign back in 2014.
  • China’s first refrigerated-container train left for Moscow from northeast China’s Dalian on Monday, marking the opening of a new transport link between the two countries.
  • Malaysia Airlines flight MH370 mysteriously disappeared two years ago. Veteran flight-accident investigator Larry Vance believes one of the pilots hijacked the aircraft.
  • Crimean Head Sergei Aksyonov has stated that the US State Department is behind the Ukrainian authorities’ attempts to carry out terrorist acts in Crimea.

12th August 2016:

  • Germany has been accused of allowing thousands of migrants to enter their country via Cologne Bonn airport on night time flights. Speculation has been fuelled due to claims that numerous planes have been seen landing from Turkey. Given Germany has publicly stated that it intends allowing thousands of migrants into their country, this could well be just sensational journalism.
  • The European Central Bank and German regulator BaFin have cleared the takeover of Hauck & Aufhauser by Fosun, bringing the Chinese conglomerate a major step closer to owning one of Germany’s oldest private bank.
  • Chinese companies have invested substantially in Africa, accounting for 30% of the region’s capacity additions in the last five years, and they continue to develop the power sector particularly in sub-Saharan Africa, according to a study released by the International Energy Agency.
  • Last Saturday, China successfully launched the first satellite for mobile telecommunication. The Tiantong-01 satellite was launched at southwestern China’s Xichang Satellite Launch Centre, with the Long March-3B carrier rocket.
  • Rising premiums saw only 11 million people purchase health insurance significantly below the Congressional Budget Office’s initial projection of 21 million. With premiums set to soar in 2017, Obamacare appears to be on the verge of collapse.
  • Gold investment demand reached record highs in the first half of 2016 overtaking the previous high seen during the 2009 financial crisis according to a report which was released by the World Gold Council yesterday.
  • Head of the Turkish Foreign Ministry Mevlüt Çavuşoğlu claimed that should Turkey leave NATO, the Alliance will have to blame itself along with its faults, but not Turkey’s rapprochement with Russia, China, and the Middle East.
  • The Russian Federal Antimonopoly Service (FAS) has fined Google $6.75 million for violating antitrust rules on tablets and smartphones.
  • Turkey is ready to equally split the financing of the Turkish Stream pipeline with Russia according to Erdogan.
  • Western economists are now confident that the Russian economy will emerge from its worst recession in two decades. Rising volumes of rail cargo and container transportation, as well as increasing demand for electricity are indications of a sustained recovery. This author also points to the huge diversification of trade we have seen Russia undertake since the imposition of the EU sanctions.
  • Switzerland’s highest court has backed Iran in its oil pipeline conflict with Israel that has been ongoing since the Islamic revolution in 1979. Israel has been ordered to pay Iran $1.1 billion plus interest of $461,302 in court costs.
  • The German economy, Europe’s biggest, grew 0.4 percent in the second quarter – a slower pace than in the previous three-month period.
  • Global demand for oil will grow less than expected next year due to a weaker global economy, though the oversupply of crude is apparently ending. This author finds that assertion questionable given Iran is ramping up production and the lack of implementation on curbing global production quotas.
  • Mercedes is in talks with the Russian government on beginning construction of a manufacturing plant in Russia.
  • China’s COSCO Shipping group has completed the acquisition of a 51 percent stake in the Greek port of Piraeus, becoming the controlling shareholder.
  • Australian government has blocked the purchase of a controlling stake in the country’s largest electricity distribution network that was sought by Chinese and Hong Kong firms.

13th August 2016

  • Levels of a widely used class of industrial chemicals linked with cancer and other health problems polyfluoroalkyl and perfluoroalkyl substances (PFASs) exceed federally recommended safety levels in public drinking water supplies for six million people in the U.S., according to a new study led by researchers from Harvard.
  • Russia’s Federal Air Transport Agency’s head said that about 15 Russian airlines are ready to launch charter flights to Turkey.
  • Russia’s Foreign Ministry said that Sergei Lavrov will discuss the situation in Ukraine and Syria with his German counterpart Frank-Walter Steinmeier on August 15th.
  • The chairman of the Foreign Affairs Committee of the Russian parliament’s upper house stated that Western countries are no longer supporting the Ukrainian authorities unconditionally.
  • A German cooperative savings bank in the Bavarian village of Gmund am Tegernsee said it’ll start charging retail customers to hold their cash. From September, for savings in excess of 100,000 euros ($111,710), the community’s Raiffeisen bank will take back 0.4 percent.
  • Russian gross domestic product (GDP) shrunk by 0.6 percent in the second quarter, reports federal statistics service Rosstat. This is an improvement from the 1.2 percent contraction in the first three months this year.
  • The week through August 10 saw foreign portfolio investments in Russian assets increase to $65 million from a $37 million inflow a week earlier, according to data from Emerging Portfolio Fund Research (EPFR).
  • Volkswagen is in early talks with German solar power equipment maker SMA Solar about working together, the companies said, as the automaker pushes ambitious electric car plans to overcome its diesel emissions scandal.
  • With the lifting of sanctions, trade turnover between Moscow and Tehran has grown 70.9 percent in year-on-year terms, according to Russia’s ambassador to Iran, Levan Dzhagaryan.
  • Britain is the biggest single investor in the United States, spending $450 billion and supporting more than one million jobs and outspending Japan and Canada, new research has found.
  • Representatives of the Bulgarian government and business said here on Friday that their country wanted to strengthen agricultural cooperation with China and the goal of his ministry was to strengthen trade and mutual interest between Bulgaria.
  • Serbian Prime Minister Aleksandar Vucic met with Austrian Chancellor Christian Kern at the Austrian Federal Chancellery in Vienna. Vucic said that, in the event of a new major migrant wave, Serbia would speak with EU officials and that he would be among the first to consult the Austrian chancellor.
  • Vowing to promote institutional reform and the right to privacy, Pirate Party leader Birgitta Jonsdottir says her party is ready to shake up old-school politics, as polls suggest over one in four Icelanders will vote for it in upcoming October elections.
  • Boris Johnson has told Sergei Lavrov, the Russian Foreign Minister that Britain must “normalise” its relationship with Russia after years of hostility. Lavrov and Johnson spoke to discuss the normalisation of bilateral ties.

14th August 2016:

  • Russia’s Hypersonic 7680MPH Nuclear Glider armed with intercontinental ballistic missiles (ICBMs) is almost ready. This hypersonic nuclear glider that looks to revolutionise defence aviation could travel the distance from Moscow to London within 13 minutes and could penetrate NATOs missile defence system.
    • This is another example why NATO is running scared because it realises it has no answer to Russia’s military capability and this is accelerating the demise of the cabal as Russia is now able to leverage its own position more readily because of this military superiority.
  • Six Russian Tu-22M3 bombers carried out airstrikes on Daesh positions near the Syrian city of Deir ez-Zor today. According to the Defence Ministry, Russian bombers destroyed 6 big depots, 2 tanks, 4 infantry combat vehicles and 2 command posts of Daesh.
    • How much of these new targets are being given via Turkish intelligence?
  • The Indian Ministry of External Affairs spokesman said that they welcome dialogue with Pakistan but demands that Islamabad put an end to its support of terrorist organizations.
    • Expect to see more nations heal the deep seated wounds that have largely been a result of cabal interference and intervention. Rather like Turkey they are beginning to realise who their real enemies are.
  • French retired general Didier Tauzin, a presidential candidate for the 2017 elections has urged EU countries to distance themselves from NATO when forming the proposed new Defence Union – “Defence Schengen.”
    • Importantly Tauzin stated that Russia was no longer an enemy of Europe and this new defence initiative should serve European interests and not Washington’s which clearly are asynchronous. Yet another example of why NATO is now deeply fractured, particularly with regards to Washington and why Europe sees the need for having its own army, not as some in the alternative media suggest is another cabal initiative.
  • Argentina Foreign Minister Susana Malcorra said that they will continue its policy of recognition of Palestine as an independent state and that the Argentinian President Mauricio Macri expects to hold a bilateral meeting with Russian leader Vladimir Putin during the G20 summit in September.
    • We need to pay close attention to developments in Argentina as there have been concerns that Macri is heavily influenced by Western interests.
  • A former senior law enforcement official in the US has stated that multiple investigations by FBI and the US Attorney’s Office are underway involving potential corruption charges against the Clinton Foundation.
    • Notwithstanding Hilary Clinton’s obvious health issues, investigations into the Clinton Foundation have far more significance than those attached to the emails on a private server. Given the extent of such investigations and the number of personnel involved any attempt to hinder these investigations will be that much harder.
  • According to a Bloomberg report, the hackers penetrated the systems of Open Society, an organization of George Soros gaining access to the company’s intranet system called Karl, used to circulate draft program proposals, budgets and other internal documents. In addition NATO’s former top military commander General Philip Breedlove’s personal e-mails dating back to at least 2012 when he was one of the United States highest-ranking military officers and was commander of the U.S. European Command and NATO Allied Command Operations.
    • Speculation is already rife that Russian hackers are involved which is meaningless predictable propaganda. What we can be sure of is that they will have been hacked well before any signature was left indicating that was the case. It seems the time has come to let the likes of Soros know that his cards have been marked.
  • Former French president Nicolas Sarkozy supports a French Referendum on its future in the EU as anger grows within France over issues such as economic policy and recent terrorist attacks, Sarkozy when asked about a potential FREXIT he said, “I believe that we should not be afraid of the people. If they do not believe in the European idea and it does not stand the test of a referendum, then it is not the right path.”
    • Cynics might call this opportunism by Sarkozy but it is clear that we are seeing across Europe a desire amongst nations to leave the European Union and the Euro. Rather like NATO the EU is now in its death throes.
  • Speaking at the 95th anniversary of the Chinese Communist Party last month, Xi Jinping delivered a speech in which he called for a military union with Russia that would render NATO powerless and put an end to the imperialist desires of the West: “The world is on the verge of radical change,” said Jinping. “We see how the European Union is gradually collapsing, as is the US economy. It is all over for the new world order.”
    • The reshaping of the world has always been about Russia and China and this is why we tend to focus on the initiatives of those two nations. The last two years is testament to that and provides irrefutable proof.
  • Deutsche Bank has reached the unsurprising conclusion that without an external economic shock it is hard to see policymakers being prepared to take dramatic, fiscal action to jumpstart the global economy and bounce it out of a financial repression.
    • The reality is that they have no tools at their disposal to affect any change. QE to infinity and ZIRP/NIRP has wrecked economies to the point of no return. The external economic shock is already in train and they also know that. This is an admission and resignation that their fate is sealed.