Toxic Mix Blows up: Oil Price Collapse & Junk Bond Insanity

It’s now called a ‘collapse’: The US benchmark light sweet crude plunged 4.6% to settle at $81.84 a barrel on Tuesday, the lowest since June 2012. In London, Brent made a similar journey to $85.04, its lowest level since November 2010. Explanations abound why this is suddenly happening, after years of deceptive calm.
Is it some harebrained plot to punish Russia by destroying its economy? Signs of success are everywhere. The ruble is in free fall despite the central bank’s efforts to prop it up. Yield on Russia’s 10-year note is nearly 10%. The government’s budget, heavily dependent on oil revenues, is in trouble. And every unit of foreign currency that isn’t nailed down is fleeing the country.
Or is it a plot by Saudi Arabia to squash the US shale oil boom? In November last year, the Saudi Gazette published an editorial on the ‘successful, wise, and balanced OPEC strategy’ that led to ‘unprecedented’ stability of oil prices for the past few years of around $106 a barrel. But couched in words such as ‘skeptics are demanding,’ it uttered the threat to raise OPEC production until the price would drop ‘below $70 a barrel’ to ‘remove the shale oil from the world oil production map….’
Or is it the combination of surging production in the US and sagging demand around the world, particularly in China and Europe?
Demand for oil would inch up this year at the slowest rate since the terrible year of 2009, the IEA predicted. OPEC might not be willing or able to lower production, it said. Why? Because of the US shale boom. And so, ‘Further oil price drops would likely be needed for supply to take a hit – or for demand growth to get a lift.’
Whatever the reasons for the market chaos, we already know what it has accomplished in the US: Investors who were long when they sleepwalked into this new era that started in late June have had their heads handed to them. WTI gave up 21% in less than four months. Over the same period, the SPDR Oil & Gas Equipment & Services Fund (XES), a basket of the largest oil- and gas-related stocks, plummeted 33%. Shares of smaller oil and gas companies have gotten demolished.
Reason for this mayhem:

This post was published at Wolf Street on October 15, 2014.

Saudi Arabia Still Calling the Shots

The U. S. Shale Oil Boom There have been a lot of stories over the past few years about the implications of the U. S. shale boom. To review for those who might have been living in a cave for the past 5 years, the marriage of horizontal drilling and hydraulic fracturing (fracking) has reversed 40 years of declining U. S. oil production and created a shale oil and gas boom.
As amazing as it would have seemed a decade ago, U. S. oil production is increasing at the fastest pace in U. S. history. In the past 5 years U. S. oil production has increased by 3.22 million barrels per day (bpd). The overall global oil production increase during that time was only 3.85 million bpd, meaning the U. S. was responsible for 83.6 percent of the total global increase over the past 5 years.
This resurgence in U. S. oil production has had a number of implications. One has been that U. S. oil imports have declined. Thus, even though the U. S. has an oil export ban in place (which has had the impact of discounting U. S. crude relative to globally traded crudes), global oil supplies have nevertheless increased as oil exporters sought other outlets to replace the declining U. S. business. This has weakened the pricing power of OPEC.

This post was published at FinancialSense on 10/15/2014.

Toxic Mix for Fracking: Oil Price Collapse & Junk Bond Insanity

It’s now called a ‘collapse’: The US benchmark light sweet crude plunged 4.6% to settle at $81.84 a barrel on Tuesday, the lowest since June 2012. In London, Brent made a similar journey to $85.04, its lowest level since November 2010. Explanations abound why this is suddenly happening, after years of deceptive calm.
Is it some harebrained plot to punish Russia by destroying its economy? Signs of success are everywhere. The ruble is in free fall despite the central bank’s efforts to prop it up. Yield on Russia’s 10-year note is nearly 10%. The government’s budget, heavily dependent on oil revenues, is in trouble. And every unit of foreign currency that isn’t nailed down is fleeing the country.
Or is it a plot by Saudi Arabia to squash the US shale oil boom? In November last year, the Saudi Gazette published an editorial on the ‘successful, wise, and balanced OPEC strategy’ that led to ‘unprecedented’ stability of oil prices for the past few years of around $106 a barrel. But couched in words such as ‘skeptics are demanding,’ it uttered the threat to raise OPEC production until the price would drop ‘below $70 a barrel’ to ‘remove the shale oil from the world oil production map….’
Or is it the combination of surging production in the US and sagging demand around the world, particularly in China and Europe?
Demand for oil would inch up this year at the slowest rate since the terrible year of 2009, the IEA predicted. OPEC might not be willing or able to lower production, it said. Why? Because of the US shale boom. And so, ‘Further oil price drops would likely be needed for supply to take a hit – or for demand growth to get a lift.’

This post was published at Wolf Street on October 15, 2014.

Russian oil exec accuses Saudis of manipulating oil price down

The surplus of oil on the world market is a temporary phenomenon, the vice president of Russian oil giant Rosneft, Mikhail Leontyev, said Sunday.
"The current price dynamic, which has been developing for the last few months, may not reflect the objective trend," Leontyev told the Russkaya Sluzhba Novostei radio.
"Prices can be manipulative. First of all, Saudi Arabia has begun making big discounts on oil. This is political manipulation, and Saudi Arabia is being manipulated, which could end badly.

This post was published at RAI Novosti

What Happens Monday?

Stocks in Dubai crashed 6.5% on Sunday. This was the biggest drop in four months and brings the Dubai Financial Market General Index to its lowest level since July 20, according to Bloomberg. Dubai, which like many Middle East exchanges is open from Sunday to Thursday, led a broad sell-off in Middle East stocks, as markets in Israel, Qatar, and Saudi Arabia also sold off on Sunday. – Business Insider
Dominant Social Theme: This is the best of times and the worst of times for stocks. But the market is an inscrutable device – and always goes up sooner or later.
Free-Market Analysis: Dubai crashed as of this writing and perhaps on Monday Wall Street and Europe will do the same. If a crash is successfully averted, next week and the week after offer similar opportunities.
Regardless … as we wrote last week, this is a central bank controlled market more than ever – and ultimately central bankers and globalist manipulators will have a good deal of impact on its fate. If a crash is not controllable, then one might expect “controllers” to busily begin maneuvering to support the markets once more.
After the 1987 Crash, the “plunge protection team” began its work in the US alongside the Fed, and though it took a few years, the market gradually rebounded significantly, giving way finally to the tremendous tech bubble. There was no explanation for the selloff that we could discover in 1987, but in any event it didn’t persist.
It could be that when there is an overwhelming tide of selling from non-institutional market participants, the market is less controllable (even these days) from a standpoint of the averages. If this is so, then no matter the controlled stabilization and buying, it would take a while to recover.

This post was published at The Daily Bell By Staff News & Analysis – October 13, 2014.

China, Russia Sign CNY150 Billion Local-Currency Swap As Plunging Oil Prices Sting Putin

While it is beyond a doubt that the primary catalyst for Europe’s triple-dip recession has been the nearly two quarters and counting of escalating Russian sanctions that were supposed to solely harm Putin (because who could have possibly foreseen that plunging German exports to Russia would have a far greater impact on the export-driven German economy), the truth is that the Kremlin itself is starting to hurt, if not so much as a result of the European trade embargo but mostly due to crashing oil prices, which have been driven lower almost exclusively by Saudi Arabia as part of its most recent secret bargain with the US, a bargain which as we read today is likely to tear OPEC apart.
One place where Russia has been hit the hardest as a result of tumbling oil prices, is the crashing currency, with the Ruble hitting new record lows against the USD on a daily basis. In fact, as Bloomberg reports, Russia has been forced to spend a whopping $6 billion in just the past 10 days to slow down the tumble of the RUB:
The ruble extended its longest losing streak in more than a year as $6 billion of Russian currency interventions failed to stem the depreciation amid tumbling oil prices.
The ruble weakened 0.5 percent versus the dollar-euro basket to 45.2911 by 1:50 p.m. in Moscow, taking its seven-day decline to 2.2 percent, the longest stretch of losses since the nine days ended Aug. 1, 2013. Oil, which along with natural gas contributes almost half of Russia’s revenue, fell 2.4 percent to $88.08 per barrel in London, the lowest since December 2010.
Russia’s central bank intervened in the past 10 days to stabilize the ruble, central bank Governor Elvira Nabiullina told lawmakers in Moscow today. The action, which comes as President Vladimir Putin orders a withdrawal of Russian forces from Ukraine’s border, has so far failed to halt the ruble’s decline amid a domestic foreign currency shortage stemming from sanctions. The cost of swapping rubles into dollars widened to a record.
‘The main driver for the ruble right now is the oil price,’ Dmitry Polevoy, the chief economist for Russia at ING Groep NV, said in e-an e-mailed note. Crude’s decline ‘totally eclipses’ the ‘reassuring news’ that Russia announced it was pulling back forces from Ukraine’s borders, he said.

This post was published at Zero Hedge on 10/13/2014.

Saudi Arabia’s “Oil-Weapon” Hits Europe

We first exposed the “secret” US-Saudi deal in September which led to the inevitable bombing of Syria. We then progressed to explain the quid pro quo of the deal in lower oil prices (benefiting US consumers into an election and crushing Russian revenues). In today’s Wall Street Journal we get the final piece of the puzzle as it is clear that what Saudi Arabia loses in ‘price’ it will make up in ‘volume’ as The Kingdon is taking the unusual step of asking buyers to commit to maximum shipments if they want to get its crude. Simply put, “they are threatening [European] buyers” to discontinue sales if they don’t agree with the full fixed deliveries. The ‘oil weapon’ grows stronger…
As The Wall Street Journal explains,
Days after slashing prices in Asia, Saudi Arabia is now making an aggressive push in the European oil market, traders say. The kingdom is taking the unusual step of asking buyers to commit to maximum shipments if they want to get its crude.
‘The Saudi push is not just in Asia. It’s a global phenomenon,’ one oil trader said. ‘They areusing very aggressive tactics’ in Europe too, the trader added.

This post was published at Zero Hedge on on 10/12/2014.

Guest Post: Qatar’s Jihad

Qatar may be tiny, but it is having a major impact across the Arab world. By propping up violent jihadists in the Middle East, North Africa, and beyond, while supporting the United States in its fight against them, this gas-rich speck of a country – the world’s wealthiest in per capita terms – has transformed itself from a regional gadfly into an international rogue elephant.
Using its vast resources, and driven by unbridled ambition, Qatar has emerged as a hub for radical Islamist movements. The massive, chandeliered Grand Mosque in Doha – Qatar’s opulent capital – is a rallying point for militants heading to wage jihad in places as diverse as Yemen, Tunisia, and Syria. As a result, Qatar now rivals Saudi Arabia – another Wahhabi state with enormous resource wealth – in exporting Islamist extremism.
But there are important differences between Qatar and Saudi Arabia. Qatar’s Wahhabism is less severe than Saudi Arabia’s; for example, Qatari women are allowed to drive and to travel alone. In Qatar, there is no religious police enforcing morality, even if Qatari clerics openly raise funds for militant causes overseas.
Given this, it is perhaps unsurprising that, whereas Saudi Arabia’s sclerotic leadership pursues reactionary policies rooted in a puritanical understanding of Islam, Qatar’s younger royals have adopted a forward-thinking approach. Qatar is the home of the Al Jazeera satellite television channel and Education City, a district outside of Doha that accommodates schools, universities, and research centers.
Similar inconsistencies are reflected in Qatar’s foreign policy. Indeed, the country’s relationship with the United States directly contradicts its links with radical Islamist movements.

This post was published at Zero Hedge on 10/12/2014.

Oil Bear Market to Eviscerate American Fracking Boom?

A sharp drop in oil prices is not good for everyone: turmoil within OPEC suggests nerves are beginning to fray, and Fitch warned about a potential contraction in US production.
Executive Report with ISA Intel: This report is part of Oil & Energy Insider, theOilprice.com premium publication. It gives subscribers an information advantage when investing, trading, or doing business in the energy sectors.
The bear market for oil has arrived. Brent crude has dropped by more than 20 percent since hitting a multiyear high in June. With it hovering at $90 per barrel, oil traders are no longer confident that oil prices have reached the bottom.
Low oil prices are great for consumers. They act as a tax cut – more money in people’s pockets can have a material effect on purchasing power, and can provide a modest boost to consumer economies.
But a sudden drop in oil prices is not good for everyone. And the latest turmoil within the oil cartel OPEC suggests that the nerves of member countries are beginning to fray. According to The Wall Street Journal, cohesion within OPEC is beginning to erode as certain countries have begun to compete against one another.
Typically, OPEC acts in concert when oil prices slide too quickly, acting collectively to cut back production in order to prop up prices. However, amid the most recent price decline, Saudi Arabia and Kuwait have unilaterally cut prices in order to maintain market share, a decision that caught some market analysts by surprise. The price cut was intended to underprice oil from the United Arab Emirates, a fellow cartel member.

This post was published at Wolf Street by ISA Intel ‘ October 11, 2014.

‘The Terrorists R Us.’ The Islamic State ‘Big Lie’

Under the auspices of the United Nations Security Council, with president Obama chairing the Council session, the United States has called upon the international community to adopt strong measures, at national and international levels, to curtail the recruitment of Islamic State fighters.
What is not mentioned in the media reports is that the heads of State and heads of government who have endorsed America’s campaign against the Islamic State, advised by their respective secret services, are fully aware that US intelligence is the unspoken architect of the Islamic State, which is part of a vast network of US supported ‘jihadist’ terrorist entities. Countries are either coerced into supporting the US sponsored resolution or they are complicit in the US terror agenda.
Lest we forget, Saudi Arabia, Qatar, have been financing and training the ISIL terrorists on behalf of the United States. Israel is harboring the Islamic State (ISIL) in the Golan Heights, NATO in liaison with the Turkish high command has since March 2011 been involved in coordinating the recruitment of the jihadist fighters dispatched to Syria. Moreover, the ISIL brigades in both Syria and Iraq are integrated by Western special forces and military advisers.
All this is known and documented, yet not a single head of state or head of government has had the courage to point to the absurdity of the US sponsored United Nations Security Council resolution, which was adopted unanimously on September 24.
‘Absurdity’ is an understatement. What we are witnessing is a criminal undertaking under UN auspices.
While international diplomacy is often based on deception, US foreign policy lies are no longer credible. What we are witnessing is a total breakdown of established diplomatic practice. The ‘Forbidden Truth’ is that the Islamic State is an instrument of Washington, a US ‘ intelligence asset’. ISIL is not an independent entity, nor is it an ‘outside enemy’ which threatens global security, as conveyed by the Western media.

This post was published at The Daily Sheeple on October 10th, 2014.

Why Oil Is Plunging: The Other Part Of The “Secret Deal” Between The US And Saudi Arabia

Two weeks ago, we revealed one part of the “Secret Deal” between the US and Saudi Arabia: namely what the US ‘brought to the table’ as part of its grand alliance strategy in the middle east, which proudly revealed Saudi Arabia to be “aligned” with the US against ISIS, when in reality John Kerry was merely doing Saudi Arabia’s will when the WSJ reported that “the process gave the Saudis leverage to extract a fresh U. S. commitment to beef up training for rebels fighting Mr. Assad, whose demise the Saudis still see as a top priority.”

What was not clear is what was the other part: what did the Saudis bring to the table, or said otherwise, how exactly it was that Saudi Arabia would compensate the US for bombing the Assad infrastructure until the hated Syrian leader was toppled, creating a power vacuum in his wake that would allow Syria, Qatar, Jordan and/or Turkey to divide the spoils of war as they saw fit.

This post was published at Zero Hedge on 10/10/2014.

As Fracking Enters A Bear Market, A Question Emerges: Is The Shale Boom Built On A Sea Of Lies?

One of, if not the biggest contributors to the improving US trade deficit and thus GDP (not to mention labor market in select states) over the past several years, has been the shale revolution taking place on US soil, which has led to unthinkable: the US is now the biggest producer of oil in the world, surpassing Saudi Arabia and Russia. Which is great today, but what about tomorrow?
It is here that problems emerge according to Bloomberg’s snapshot of the shale industry. In “We‘re Sitting on 10 Billion Barrels of Oil! OK, Two“, the authors look at the two-tiers of reporting when it comes to deposits that America’s fracking corporations allegedly sit on, and find something unpleasant:
Lee Tillman, chief executive officer of Marathon Oil Corp., told investors last month that the company was potentially sitting on the equivalent of 4.3 billion barrels in its U. S. shale acreage. That number was 5.5 times higher than the proved reserves Marathon reported to federal regulators. Such discrepancies are rife in the U. S. shale industry. Drillers use bigger forecasts to sell the hydraulic fracturing boom to investors and to persuade lawmakers to lift the 39-year-old ban on crude exports. Sixty-two of 73 U. S. shale drillers reported one estimate in mandatory filings with the Securities and Exchange Commission while citing higher potential figures to the public, according to data compiled by Bloomberg. Pioneer Natural Resources (PXD) Co.’s estimate was 13 times higher. Goodrich Petroleum Corp.’s was 19 times. For Rice Energy Inc., it was almost 27-fold.
Fracking 101: “Predicting how much oil can be pumped out of shale has been controversial since the boom began about a decade ago. Companies combined horizontal drilling with fracking, or hydraulic fracturing. Fracking involves blasting water, sand and chemicals into deep underground layers of shale rock to free hydrocarbons. Innovators such as Oklahoma City-based Chesapeake Energy Corp. (CHK) said that drilling vast expanses of oil-soaked rock formations is more predictable than the traditional, straight-down method of exploration. Regulators agreed and requirements were loosened starting in 2010.”
Furthermore, as tech companies have non-GAAP to hide all the nasty “expense” stuff, energy companies rely on probable and possible.

This post was published at Zero Hedge on 10/10/2014.

False Flag Warning: Khorasan Terrorist Group Is Back And A US Attack Is Imminent – Episode 485

The following video was published by X22Report on Oct 6, 2014
Germany orders plunge to new lows. Euro zone sentiment falls in October. HP laying off 5,000 employees and the company could be split up. UK, US and Turkey attacking free speech on the internet. More cases of Ebola which might trigger more advanced screenings at airports. Hong Kong protests seems to be losing steam. New Islamic State document found implicating Russia in its plan. 5,000 paid mercenaries being trained in Saudi Arabia. Russia blamed for attacking JP Morgan. China implicated in cyber attacking companies. FBI director says Khorasan terrorist group is planning to attack the U. S. Be prepared for a false flag.

Arabs Under the Bus: Has Biden Grown a Brain? No, He’s Just Campaigning for 2016

The Vice President’s speech this week at Harvard University raised a few eyebrows when he blamed Washington’s Middle East allies for financing and fueling the rise of the Islamic terrorist phenomenon ISIS.
There’s more to this than meets the eye…
RT reports: On Thursday, Biden said his ‘old friend’ Erdogan (Turkish President) had admitted to making a mistake in allowing foreign fighters to cross the Turkish border into Syria.
‘You were right. We let too many people through. Now they’re trying to seal their border,’Biden quoted Erdogan as saying.
So Biden just blew the lid on Syria’s Jihadi plague and threw Turkey, Saudi Arabia, Qatar, Kuwait, Bahrain and the UAE – the whole Arab coalition, under the bus. This is a significant departure from the Vice President’s wild-eyed, American muscle-flexing, ‘Gates of Hell’ ISIS speechunleashed only weeks earlier.
Most alternative journalists and geopolitical realists will certainly back Biden’s point, and some may even applaud it, but it’s still a huge break from the White House and US State Department, who have carefully crafted a mythology of a cohesive ‘Coalition’ in their battle to crush ISIS in Iraq and Syria (see video below).


This post was published at 21st Century Wire on OCTOBER 4, 2014.

Bombing Islamic State Not Enough, Financial War Increasing Economy Falling, CDC Ebola Lies

The following video was published by Greg Hunter on Oct 2, 2014
Speaker of the House John Boehner lays out a case that ‘Airstrikes Not Enough’ to defeat ISIS. Boehner said, ‘At some point, somebody’s boots have to be on the ground.’ ISIS has half of Bagdad surrounded, and I predict the U. S. will send ground troops sooner than later. The coalition is building with countries such as the UK, Belgium and France, but they will not bomb in Syria – only Iraq. I suspect they are afraid of making Russia angry.
The financial war has been going on for a while and it is not abating. Notice those cheap oil prices? There is speculation that oil could hit $60 a barrel! Sure, part of that is declining demand, but part of it is Saudi Arabia who continues to pump oil instead of cutting back production. Why? Saudi Arabia wants to lower oil prices to hurt Russia, and it’s willing to cut prices and take a hit to do it.
A Missouri doctor says the CDC is ‘lying’ or is ‘grossly incompetent’ about the Ebola threat. Dr. Gill Mobley, who is a micro biologist and trauma doctor, boarded a plane in Atlanta with a full hazmat suit on, complete with goggles, gloves and mask. He had written on his hazmat suit ‘CDC is lying.’ He did this as a protest of the handling of the Ebola threat.

America’s Never-Ending War in the Middle East

While President Obama continues – at least for now – to resist redeploying large numbers of U. S. soldiers to fight the Islamic State on the ground, the military components of the anti-Islamic State strategy he has laid out effectively recommit the United States to its post-9/11 template for never-ending war in the Middle East. In the end, such an approach can only compound the damage that has already been done to America’s severely weakened strategic position in the Middle East by its previous post-9/11 military misadventures.
Thirteen years after the fact, most of America’s political and policy elites have yet to grasp the strategic logic that motivated the 9/11 attacks against the United States. Certainly, al-Qa’ida was not averse to damaging America’s economy and punishing its people. But Osama bin Laden knew that effects of this sort would be finite, and thus of limited strategic value; he had no illusions about destroying ‘the American way of life.’
The real objective of the 9/11 attacks was to prompt American overreaction: to goad Washington into launching prolonged military campaigns against Muslim lands. These campaigns would galvanise popular sentiment across the Muslim world against the United States, mobilise Middle Eastern publics against regional governments (like the one in bin Laden’s native Saudi Arabia) that cooperate politically and militarily with it, and rally them in favor of jihadi fighters who resist American domination. Looking ahead, the al-Qa’ida leader anticipated that local backlash against U. S. overreaction to a terrorist provocation would ultimately undermine the regional foundations of America’s ability to project massive amounts of military force into the Middle East, compelling it to disengage from the region and go home.
Viewed through this frame, the United States fell for bin Laden’s plan with appalling alacrity. America’s post-9/11 invasions cum campaigns of coercive regime change in Afghanistan, Iraq, and Libya have been strategic failures, leaving the United States weaker – in terms of its ability to achieve its stated goals in the Middle East, its economic position, and its standing as a global superpower – than before. And the most important factor ensuring the failure of these campaigns was that they eviscerated the perceived legitimacy of American purposes in the Middle East for the vast majority of people living there. As a result, America’s self-declared ‘war on terror’ has made the threat to U. S. interests from violent jihadi extremists vastly more broad-based, complicated, and dangerous than it was thirteen years ago.

This post was published at Ron Paul Institute on October 1, 2014.

How The “Syrian Rebels” Really Feel About “Friendly” US Airstrikes

Late yesterday, General Martin Dempsey, chairman of the U. S. military’s Joint Chiefs of Staff, disclosed what in a nutshell US strategy in Syria would be.
For one, he announced that the US would require some 12,000-15,000 armed, trained and paid for boots on the ground, i.e., mercenaries to do Obama’s dirty work on the ground because the Nobel peace prize winner is unwilling to go all the way with his belligerent pivot. As a reminder, the last notable time the US engaged in wholesale arming and funding of offshore mercenaries was the Afghan war, when the CIA got involved with the Mujahideen “freedom fighters” whose funding began with $20 – $30 million per year in 1980 and rose to $630 million per year in 1987, culminating with the terrorist action of Osama Bin Laden, once a close friend of the US and the CIA (read more about Operation Cyclone here).
More importantly, as Reuters reported, Dempsey said that the endgoal is “to recapture lost territory in eastern Syria”. Territory, which as we reported in July, amounts to 35% of Syria’s landmass and includes most of its oilfields. And sure enough, the territory would be preserved for the exclusive use of the “rebels”, or the group of Islamists from whose ranks none other than ISIS arose over the past year. And since the rebels couldn’t care one way or another, this is merely a way for the US to say that whatever Syrian territory is “liberated” from ISIS presence, it will be disposed of as the US sees fit, with the only decisions being whether to grant it to Qatar or Saudi Arabia.
In the meantime, things on the propaganda front are going form bad to worse. Recall the Nusra front – the extreme wing of the “rebels” that the US is allegedly supporting? Well as Haaretz just reported, “”the al Qaida-linked Nusra Front on Saturday denounced U. S.-led air strikes on Syria, saying they amounted to a war against Islam and vowing to retaliate against Western and Arab countries that took part.
Er, that doesn’t help the official party line that Syrian rebels are greeting the US with open arms. “We are in a long war. This war will not end in months nor years, this war could last for decades,” the group’s spokesman Abu Firas al-Suri said.
Funny, because earlier today, Syria’s foreign minister Walid al-Muallem was informed, by the US mind you, that the war against ISIS will continue for three years, or just after until the end of Obama’s second, and hopefully final term.

This post was published at Zero Hedge on 09/27/2014.

The Airwaves Are Still Heaving With Spin Two Days After US Airstrikes Against Syria

Undoubtedly the attacks were timed to occur on the eve of the annual gathering of world leaders at the United Nations, so ‘Coalition’ partners could cluster behind the decision to bomb a sovereign state, uninvited. The irony, of course, is that they are doing so at the UN – the global political body that pledges to uphold international law, peace and stability, and the sanctity of the nation-state unit. The goal this week will be to keep the ‘momentum’ on a ‘narrative’ until it sinks in. On day one, heads of state from Turkey, Jordan, Qatar, the UK and France were paraded onto the podium to drum in the urgency of American strikes against the Islamic State of Iraq and the Levant (ISIL), Jabhat al-Nusra and other militant groups inside Syria. Every American official – past and present – in the White House rolodex was hooked up to a microphone to deliver canned sound bites and drive home those ‘messages.’ In between, video-game-quality footage of US strikes hitting their targets was aired on the hour; clips of sleek fighter jets refueling midair and the lone Arab female fighter pilot were dropped calculatingly into social media networks. The global crew of journalists that descends annually on the UN for this star-studded political event, enthused over US President Barak Obama’s ability to forge a coalition that included five Arab Sunni states – Saudi Arabia, Qatar, Jordan, Bahrain and the UAE. Few mentioned that these partners are a mere fig leaf for Obama, providing his Syria campaign with Arab and Muslim legitimacy where he otherwise would have none. Not that any of these five monarchies enjoy ‘legitimacy’ in their own kingdoms – kings and emirs aren’t elected after all – and two of these Wahhabi states are directly responsible for the growth and proliferation of the Wahhabi-style extremism targeted by US missiles. Even fewer spent time dissecting the legality of US attacks on Syria or on details of the US ‘mission’ – as in, ‘what next?’

This post was published at Ron Paul Institute on September 26, 2014.

Bombing of the Islamic State in Syria and Iraq, Eric Holder Quits, Russia Counters Sanctions

The following video was published by Greg Hunter on Sep 25, 2014
The U. S. promises a ‘Long Campaign,’ with the bombing of the Islamic State in Syria and Iraq. The Obama Administration has the support of other Arab nations, but the most important support comes from Saudi Arabia. Remember last year when the Obama Administration backed out of bombing Syria. Top Saudi officials were quoted as saying that they were ‘stabbed in the back’ by President Obama. Fast forward to today and rumors of Saudi Arabia to stop using the petro dollar when selling oil. No doubt the Saudis threatened to pull the plug on the dollar. Now, it looks like this bombing deal in Syria will prolong the use of the dollar when buying and selling oil, at least for a while.
Eric Holder announced he is quitting his job as Attorney General. My question is why now? I guess it could be any number of things such as the ‘Contempt of Congress’ case that is proceeding. It could also be the ‘Fast and Furious’ case that a federal judge just ruled that there can be no more delays with providing records. It may also be the IRS targeting that, in reality, is felony First Amendment criminal activity to suppress political opponents.
The top commander of NATO says there is cease-fire in Ukraine in ‘name only.’ You have not heard much on this subject, but it too, is far from over. Russia is now drafting some new laws in response to the sanctions from the West over Ukraine. Russian lawmakers want to seize property of foreign companies inside Russia.