Posted at 11:23 AM (CST) by & filed under In The News.

Jim,

Regarding your posting today:

US to form ‘core coalition’ to fight Isis in Iraq
US secretary of state John Kerry rules out committing ‘boots on the ground’ at meeting of 10 nations on sidelines of Nato summit
Patrick Wintour
theguardian.com, Friday 5 September 2014 10.03 EDT

Offering military hardware and monetary support but no “boots on the ground” shows a lack of commitment.

Buying Democracy and Capitalism is no different than buying friendship – it doesn’t work.

CIGA Wolfgang Rech

 

Jim,

Egon says the Gold Initiative to be voted on in Switzerland at the end of November would require the state to purchase upwards of 1,700 tons ($70billion) if it is voted into law.

That would decidedly have an upward effect on the price of gold.

CIGA Larry

Great Danger Looms As Investors Say Goodbye To Summer

Today a 42-year market veteran warned King World News that great danger now looms as investors say goodbye to summer and global trading enters the final few months of this year.  Below is what Egon von Greyerz, who is founder of Matterhorn Asset Management out of Switzerland, had to say in this fascinating interview.

Greyerz:  “Looking around the world it is astounding how investors are ignoring risk in their investment strategy. Global stock markets are in bubble territory, but the massive liquidity and the lemming mentality of investors have led to a total disregard of the risks that stocks represent today….

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Posted at 8:28 AM (CST) by & filed under In The News.

August Jobs Tumble To Only 142K, Lowest Monthly Print Of 2014 And Below Lowest Forecast; Unemployment Rate 6.1%
Tyler Durden on 09/05/2014 08:34 -0400

So much for the latest recovery: with not a single analyst expecting a NFP print below 190K, the BLS just reported that August payrolls tumbled from a revised 212K to only 142K, which was not only below the lowest Wall Street estimate of 190K, but it was also the the lowest monthly jobs print in all of 2014 and the biggest miss to expectations since the "polar vortex"! The Unemployment rate dripped modestly from 6.2% to 6.1% confirming yet again it has become a completely meaningless metric.

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The visual data breakdown:

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From the report:

In August, both the unemployment rate (6.1 percent) and the number of unemployed persons (9.6 million) changed little. Over the year, the unemployment rate and the number of unemployed persons were down by 1.1 percentage points and 1.7 million, respectively. (See table A-1.)

Among the major worker groups, the unemployment rates in August showed little or no change for adult men (5.7 percent), adult women (5.7 percent), teenagers (19.6 percent), whites (5.3 percent), blacks (11.4 percent), and Hispanics (7.5 percent). The jobless rate for Asians was 4.5 percent (not seasonally adjusted), little changed from a year earlier. (See tables A-1, A-2, and A-3.)

The number of long-term unemployed (those jobless for 27 weeks or more) declined by 192,000 to 3.0 million in August. These individuals accounted for 31.2 percent of the unemployed. Over the past 12 months, the number of long-term unemployed has declined by 1.3 million. (See table A-12.)

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US to form ‘core coalition’ to fight Isis in Iraq
US secretary of state John Kerry rules out committing ‘boots on the ground’ at meeting of 10 nations on sidelines of Nato summit
Patrick Wintour
theguardian.com, Friday 5 September 2014 10.03 EDT

The US has announced it is forming a "core coalition" to battle Islamic State (Isis) in Iraq, and has given the new bloc two weeks to finalise plans to help the Baghdad authorities and the Kurds in the north intensify the fight against the militants.

Speaking at the Nato summit in Wales, the US secretary of state, John Kerry, said on Friday that the 10-nation coalition would concentrate on shoring up those in Iraq who were fighting against Isis, but said intervention would not extend to western powers sending in troops.

"We need to attack them in ways that prevent them from taking over territory, to bolster the Iraqi security forces and others in the region who are prepared to take them on, without committing troops of our own," Kerry told a meeting of the 10 nations that will form the coalition. "Obviously I think that’s a red line for everybody here: no boots on the ground."

He said the grouping should come up with firm plans by the time the UN general assembly meets for its annual session later this month.

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Cease-Fire Agreement for Eastern Ukraine Is Reached
By NEIL MacFARQUHAR
SEPT. 5, 2014

KIEV, Ukraine — Ukrainian government forces and the pro-Russan separatist rebels fighting them in eastern Ukraine will observe a cease-fire starting Friday, negotiators from all sides announced at a news conference in Minsk, Belarus.

However, the strength of the truce was immediately called into question by continued fighting around Mariupol, a port city in southeastern Ukraine.

Speaking from Minsk, negotiators representing the Ukrainian government, the separatists, Russia and the Organization for Security and Cooperation in Europe said that the cease-fire was due to come into force at 6 p.m. local time.

President Petro O. Poroshenko of Ukraine confirmed in messages posted on Twitter that the there was agreement on a cease-fire protocol.

“The whole world is striving for peace, the whole of Ukraine is striving for peace, including millions of citizens in Donbass,” the posting said, referring to the region that includes the separatist strongholds.

“The highest value is human life, and we must do everything possible to stop the bloodshed and put an end to suffering,” the Twitter posting said.

More…

Posted at 11:55 AM (CST) by & filed under In The News.

Jim Sinclair’s Commentary

The latest from John Williams.

- Neither Economic Boom nor Recovery Is Underway; Fundamentals Are Not in Place to Fuel or to Support Such a Circumstance 
- Latest Median Household Income Reading Confirmed Severely Impaired Consumer and Economy 
- Trade Deficit Continued to Widen Year-to-Year Despite Prior-Period Revisions and Unusual Seasonal Factors 
- Net of Inflation, Construction Spending Surge Was Stagnation

"No. 654: July Median Household Income, Trade Deficit, Construction Spending" 
Web-page: http://www.shadowstats.com?

 

Jim Sinclair’s Commentary

What dramatic impact has interest rates had across the entire economy? None!

‘Worst Case’ BP Ruling on Gulf Spill Means Billions More in Penalties
By Margaret Cronin Fisk, Laurel Brubaker Calkins and Jef Feeley Sep 4, 2014 6:18 PM MT

BP Plc acted with gross negligence in setting off the biggest offshore oil spill in U.S. history, a federal judge ruled, handing down a long-awaited decision that may force the energy company to pay billions of dollars more for the 2010 Gulf of Mexico disaster.

U.S. District Judge Carl Barbier held a trial without a jury over who was at fault for the catastrophe, which killed 11 people and spewed oil for almost three months into waters that touch the shores of five states.

“BP has long maintained that it was merely negligent,” said David Uhlmann, former head of the Justice Department’s environmental crimes division. He said Barbier “soundly rejected” BP’s arguments that others were equally responsible, holding “that its employees took risks that led to the largest environmental disaster in U.S. history.”

The case also included Transocean Ltd. (RIG) and Halliburton Co. (HAL), though the judge didn’t find them as responsible for the spill as BP. Barbier wrote in his decision today in New Orleans federal court that BP was “reckless,” while Transocean and Halliburton were negligent. He apportioned fault at 67 percent for BP, 30 percent for Transocean and 3 percent for Halliburton.

More…

The Battle For Strategic Mariupol Begins As NATO Vows To Do "Whatever It Takes"
Tyler Durden on 09/04/2014 09:19 -0400

Shelling is reported to have started on the eastern outskirts of Mariupol, Ukraine, according to local reporters on social media. This crucial city, due to its standing as the last major city standing in the way of a land connection to Crimea (from Russia) across the Southern border. Furthermore, Mariupol’s strategic importance as a port and major industrial city is crucial to Kiev who are reinforcing the city after losing Novoazovsk last week, with the Ukrainian army on full alert. NATO has been actively sabre-rattling this morning, pulling a full Draghi by threatening to do "whatever it takes" to defend ourselves and our allies, and offering training and support for Ukraine (as they report over 3,000 Russian troops in Ukraine). Escalation?

Shelling on the outskirts of Mariupol #Ukraine

— Simon Ostrovsky (@SimonOstrovsky) September 4, 2014

UKRAINIAN ARMY ON TOP ALERT NEAR PORT CITY OF MARIUPOL, READY TO REPULSE POSSIBLE ATTACK BY REBELS – MILITARY SOURCE – RTRS

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Japan imposes sanctions against Russia under US pressure — Tokyo Governor
September 04, 18:58 UTC+4

TOMSK, September 04. /ITAR-TASS/. Japan has imposed sanctions against Russia under pressure from the United States, Tokyo Governor Yoichi Masuzoe told journalists in Tomsk, which is hosting the summit of the heads of Asian cities, on Thursday.

The governor said Japan was very dependent on the US in security issues.

“We have problems related to China, North and South Korea. That is why we need to rely on the US military potential,” Yoichi Masuzoe said, adding he wanted the Russians to understand what stood behind Japan’s decision to impose sanctions against Russia.

The governor also pledged to exert maximum efforts to improve bilateral relations between Russia and Japan.

On August 5, the Japanese Foreign Ministry published the names of 40 individuals and two organizations that fell under the Japan government-approved sanctions against Russia. The sanctions list includes Crimean officials, representatives of the self-proclaimed Donetsk and Luhansk People’s Republics; as well as two Crimean companies – Chernomorneftegaz and the Feodosiya oil base. Japan has also banned all imports of goods produced in Crimea.

Japan imposed the first round of sanctions against Russia on March 18, the day when Crimea officially reunited with Russia. It suspended consultations with Russia on possible facilitation of the visa regime and postponed the conclusion of three treaties with Russia – on investment cooperation, cooperation in space exploration and prevention of dangerous military activity.

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Western sanctions prompt Russia to turn east in search partners
September 04, 17:02 UTC+4

MOSCOW, September 04. /ITAR-TASS/. The US-led anti-Russian campaign over the crisis in Ukraine has prompted Moscow to turn east in search of new partners. In the Asia-Pacific Region, experts say, Russia is likely to find quite a few countries eager to establish or expand strategic cooperation.

Firstly, there is China, with whom Russia has concluded a 30-year multi-billion contract for laying the Power of Siberia oil pipeline. Within the framework of the same project Mongolia on Wednesday expressed the wish to compete with Kazakhstan for the right to transit Russian gas to China. On Tuesday, Russian President Vladimir Putin on the occasion of the 69th anniversary of Vietnam’s independence voiced the certainty about comprehensive strategic partnership for the sake of ensuring stability and security in the Asia-Pacific Region.

“In any case putting all eggs into one European basket is no longer possible. Alongside attempts to come to terms with the West Russia should build up its efforts tenfold to tap Siberia’s potential anew and to devise a new Asian economic and political strategy. Faster, large-scale development of Russia’s vast Asian expanses – Siberia and the Far East – should be the focus of a new national comprehensive strategy in Asia,” the dean of the world economy and world politics department at the Higher School of Economics, Sergey Karaganov, has told ITAR-TASS.

“Russia has realized the potential benefits of Asian markets. Many are getting aware the surest way to access there is through industrial production and supplies of energy and energy-intensive products, raw materials and high value added semi-finished products to the Asian markets,” said Karaganov, the honorary president of the Foreign and Defense Policy Council.

“Russia will be able to achieve a higher technological level and strengthen its sovereignty by teaming up with Asian manufacturers, first and foremost, those in China, and also in South Korea, and, possibly, Japan, Singapore for joint projects to manufacture high-tech products, such as civilian aircraft, nuclear power reactors, oil and gas production equipment, ships and armaments,” Karaganov believes.

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Russian General Demands Preemptive Nuclear Strike Doctrine Against NATO
Tyler Durden on 09/04/2014 15:07 -0400

While NATO is contemplating its existential purpose in a world where the Cold War has suddenly come back with a vengeance, and the military alliance has found itself woefully unprepared to deal with a Russia which no longer accepts the supremacy of the west (appropriately enough doing all of this on a golf course), Russia is also strategizing, only instead of issuing "sharply-worded catchphrases" and hashtags, a Russian general has called for Russia to revamp its military doctrine, last updated in 2010, to clearly identify the U.S. and its NATO allies as Moscow’s enemy number one. That in itself is not disturbing: we reported as much yesterday and is merely more rhetorical posturing. Where things, however, get very problematic is that the general demands that Russia spell out the conditions under which the country would launch a preemptive nuclear strike against the 28-member military alliance.

Moscow Times reports that Russia’s military doctrine, a strategy document through which the government interprets military threats and crafts possible responses, is being revised in light of threats connected to the Arab Spring, the Syrian civil war and the conflict in Ukraine, the deputy chief of the Kremlin’s security council told RIA Novosti on Tuesday.

That however is the soundbite for politically correct media purposes. Because within the Defense Ministry there are voices calling for different priorities.

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‘Promoting peace and stability’: NATO warships enter Black Sea
Published time: September 04, 2014 15:09

A US Navy destroyer and, reportedly, a French frigate have entered the Black Sea, as NATO builds up its presence in the region while tensions remain high in Ukraine. Another two warships are expected to arrive in the area by the end of the week.

The US Navy 6th Fleet official command has confirmed on its official Twitter account that the destroyer USS Ross, (DDG 71), an Arleigh Burke-class guided-missile destroyer, is now in the Black Sea.

“USS Ross enters Black Sea, promoting peace and stability while working with NATO allies and partners,” a statement said.

The US Navy has stressed that “the Ross’ presence in the Black Sea serves to demonstrate the United States’ commitment to strengthening the collective security of NATO allies and partners in the region.”

“The US Navy maintains an enduring commitment to forward-presence throughout the region in order to have ready-forces available if a crisis were to occur,” the statement said.

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Posted at 11:08 AM (CST) by & filed under Jim's Mailbox.

Jim,

The world’s Central Banks have made it perfectly clear. To stave off the ever downward spiraling economies, they will print money faster than Scott’s can print toilet paper.

They’ve tried printing gold (vis a vis the Comex) but the new Asian Gold Exchanges have put the kibosh on that!

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"Venezuelans queue in Caracas to buy toilet paper. Last week the government announced an emergency shipment to boost supplies. Photograph: Jorge Silva/Reuters"

Soon this will be the currency of choice in the US.

CIGA Wolfgang Rech

ECB Cuts 10 Basis Points Across The Board
By Kitco News
Thursday September 4, 2014 7:45 AM

(Kitco News) – After introducing negative interest rates in May, the ECB has cut interest rates again.

The central bank cut the rate on its main refinancing operation by 10 basis points to 0.05%; its marginal lending facility rate was cut 10 basis points to 0.30%, and its deposit facility was also dropped 10 basis points to negative 0.20%.

According to some analysts, markets were almost evenly split, expecting that the central bank would cut interest rates by 10 basis points. The ECB not only has to stimulate growth but stave off growing deflationary concerns. On Friday Eurostats, the European Union’s statistical agency, reported that August’s  inflation hit 0.3%, a five year low, down from 0.4% in July. Inflation remains well below the central bank’s target of 2.0%.

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Posted at 12:05 AM (CST) by & filed under In The News.

Ukraine may need extra $19bn if fighting continues – IMF
Published time: September 03, 2014 10:32

Kiev will need an extra $19 billion in external financing by the end of next year if fighting in Eastern Ukraine continues intensively throughout 2015, the International Monetary Fund said in a report.

The IMF ran an economic scenario where fighting in the East of Ukraine continues at an intense level throughout 2015.

“A further intensification of the conflict or its extension beyond the next few months could generate a deeper recession, larger fiscal pressures—stemming from both revenue underperformance and additional needs for military spending—and further capital outflows and international reserve losses,” the report said.

The Washington-based lender approved a $17 billion bailout loan in May to help Ukraine stay afloat, but that sum was only intended as part of a two-year stabilization program.

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Barack Obama orders more troops to Iraq after second beheading
President sending 350 additional military personnel to protect interests in Baghdad
By Josie Ensor, US Correspondent
1:42AM BST 03 Sep 2014

President Barack Obama has ordered about 350 more US troops to Baghdad to protect American diplomatic facilities and staff in the Iraqi capital, hours after the beheading of a second US journalist.

The announcement came hours after the so-called "Islamic State" (also known as ISIL) released another video showing a masked militant with a British accent cutting the throat of a US captive.

The Sunni extremist group has declared an Islamic "caliphate" in regions under its control in Iraq and Syria, after it swept through much of the Sunni Arab heartland north of Baghdad and then stormed minority Christian and Yazidi areas.

The US has been carrying out air strikes on IS positions in Iraq and already has hundreds of personnel shoring up diplomatic security in Iraq.

"The president authorised the Department of Defense to fulfill a Department of State request for approximately 350 additional US military personnel to protect our diplomatic facilities and personnel in Baghdad, Iraq," a White House statement said.

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Trader Who Scored $100 Million Payday Bets Shale Is Dud
By Bradley Olson  Sep 3, 2014 6:01 AM GMT+0200 

Sept. 3 (Bloomberg) — Bloomberg’s Betty Liu reports that oil trader John Hall, who was once awarded a $100 million trading bonus, has not seen his good fortune carry over to his bet on shale. She speaks in today’s “Movers and Shakers” on “In The Loop.”

Andrew John Hall — known as the God of Crude Oil Trading to some of his peers — has built his success on a simple creed: Everyone who disagrees with him is wrong.

For most of the past 30 years, that has been a killer strategy. Like a poker player on an endless hot streak, Hall has made billions for the companies for which he’s traded by placing one aggressive bet after another. He was one of the few traders who anticipated both the run-up in and the eventual crash of oil prices in 2008.

Hall was so good that he bagged a $98 million payday in 2008, when he ran Citigroup Inc.’s Phibro LLC trading unit, and was up for about $100 million more in 2009.

In the end, Bloomberg Markets will report in its October 2014 issue, he couldn’t collect the 2009 payout from Citi because an anti–Wall Street backlash against the bank — which had just received a $45 billion U.S. government bailout — led regulators to block it. No such bonuses have awaited Hall of late. He’s racked up losses in two of the past three years.

His wager that oil prices would rise and rise has run headlong into an unanticipated energy revolution — the frenetic push in the U.S. and elsewhere to wring crude out of shale. Shale drilling has boosted U.S. oil output to the highest level in 27 years; it helped the U.S. supply 84 percent of its energy demand last year. Oil prices, far from taking the upward trajectory Hall predicted, have been essentially unchanged since 2011.

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July Factory Orders Soar By Most On Record
Tyler Durden on 09/03/2014 10:10 -0400

Sustainable? Thanks to various massive airplane orders (as Ex-Im is threatened with extinction), US Factory Orders rose 10.5% MoM in July – the biggest MoM rise ever. However, this was a miss against expectations of an 11.2% rise and perhaps most critically, Factory Orders Ex-Transports dropped 0.8%, also missing expectations with its worst print since March 2013.

Factory orders spike (but miss)…

As Ex-Transports dropped most since March 2013.

So where did the boost come from? Same place where the record surge in durable goods orders arrived last week: Boeing airshow orders, funded courtesy of the ExIm bank and never before cheaper credit.

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Ukraine crisis: France halts warship delivery to Russia
3 September 2014 Last updated at 12:10 ET

France has said conditions are "not right" for delivery of the first of two Mistral assault navy ships to Russia.

President Francois Hollande’s office blamed Moscow’s recent actions in Ukraine.

France had until now resisted pressure to halt the delivery.

Correspondents say the EU has struggled to tighten sanctions against Russia, restricting itself to travel bans and asset freezes against individuals.

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Posted at 2:49 PM (CST) by & filed under In The News.

Jim Sinclair’s Commentary

What could possibly go wrong?

Something to “Point At”?
Bill Holter

Not that you would know it by reading or viewing mainstream news last week, World War III took a very big leap towards going live.  First, last Wednesday was the biggest news when Gazprom announced they would be selling oil and gas for rubles and yuan.  We knew for a fact this was coming sooner or later, it has arrived.  It is so important that you understand what this really means.  This is the very first time since 1973 where oil will be traded with public terms NOT being dollars.  Yes, Iran is and has been selling oil for gold and euros over the last couple of years but not "publicly" so to speak.  Gazprom which is Russia’s equivalent to the American’s ExxonMobil has announced this publicly and as their new policy.  As I wrote several weeks back, now you must ask yourself who will follow Gazprom’s example?

  The following day (Thursday), there were NATO reports of Russian troops and hardware crossing the Ukraine border.  I saw a report of an estimated 20,000 troops but this link was taken down immediately and I believe it to be false.  Russia has continually denied they have troops within sovereign Ukraine.  Then came Friday, the U.S. proposed further sanctions and British Prime Minister Cameron proposed locking Russia out of the SWIFT system.  Do you see a pattern here?  Russia moves step by step further from the dollar which is followed by the West turning the screws tighter to start a live war.  We have had several reports of "Russia invading" or "Russian tanks destroyed" and even an airliner actually shot down in an effort to spark war but Mr. Putin refuses so far to take the bait.

  Let me switch gears here for a moment and then come back.  If you look around the world today, there are many situations big enough to "point at".  What do I mean by "point at"?  Think about this, the U.S. and the dollar system is clearly financially upside down and not viable any longer.  How would it "look" if all of a sudden one Monday morning the banks and markets did just not open because a panic started?  When I say "look", I am talking about the "perception" to the common man.  This cannot be allowed to happen, there absolutely MUST be "something" to point at as the reason or the cause.

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Russia Said to Prepare Transfer of $10 Billion Fund Out of Sanctions’ Reach
By Jason Corcoran and Daniele Lepido 2014-09-01T13:57:42Z

Russia is preparing to transfer the ownership of a $10 billion sovereign wealth fund to the central bank from a sanctioned state-development lender, according to two people with knowledge of the plan.

Russian Direct Investment Fund’s co-investors, which include sovereign funds in Europe and Asia, are concerned that sanctions may affect their investments in Russia if the state lender controls the assets, according to one of the people, who asked not to be identified because the information is private.

The fund, created in 2011 to stimulate investments in privately held businesses and wean the state off its dependence on commodities, has secured the backing of funds including France’s Caisse des Depots et Consignations and Japan Bank for International Cooperation and last year hired Goldman Sachs Group Inc. as an adviser. Penalties over Ukraine have led Russia to invest in state-owned lenders VTB Group and Russian Agricultural Bank, whose access to international funds has been curbed, and the measures may also impede co-investors from dealing with RDIF.

RDIF said a decision on the transfer to the central bank has “not been made,” according to an e-mailed statement. A discussion about “possible separation” started two years ago, the fund also said.

The central bank’s press service in Moscow didn’t respond to calls and an e-mailed request for comment. Ekaterina Grishkovets, a spokeswoman for Vnesheconombank, the state development bank known as VEB, didn’t answer calls or an e-mail seeking comment.

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NATO summit: War or peace?
Mon Sep 1, 2014 3:45AM
By Brett Redmayne-Titley

The citizens of the world are coming to Newport, Wales. The siege is beginning.

Twenty-five kilometers of fifteen-foot high, reinforced steel-mesh crowd proof fencing. 20,000 heavily armed, well equipped and dark-uniformed militia have started arriving daily. Military defense plans have been finalized. Already, adrenaline is in the air. There is a fight coming. Is this Gaza?

No. This is the NATO Summit.  You, your civil rights, your quest for peace, and your demand for a return to real democracy and pursuit of happiness are not wanted here.

You do not matter!

On Thursday and Friday, Sept 4-5, 2014 the fight will begin. A fight for choice. A choice between war or peace.
What say you, world?

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CDC Director: Ebola Outbreak ‘Is Spiraling Out Of Control’
September 2, 2014 12:04 PM

ATLANTA (CBS Atlanta/AP) — The director for the Centers of Disease Control and Prevention says that the Ebola outbreak is going to get worse.

Speaking to “CBS This Morning” following his trip to the West African countries dealing with the outbreak, Dr. Tom Frieden explained that they have to act now to try to get Ebola under control.

“It is the world’s first Ebola epidemic and it is spiraling out of control. It’s bad now and it’s going to get worse in the very near future,” Frieden told CBS News. “There is still a window of opportunity to tamp it down, but that window is closing. We really have to act now.”

Frieden, who visited Liberia, Sierra Leone and Guinea, will tell Washington tomorrow that the Ebola outbreak is “spiraling upward.” The CDC director explained that these countries still need help to deal with the deadly outbreak.

“We need to support countries with resources, with technical experts and with cooperation. Too many places are sealing off these countries,” Frieden told CBS News. “If we do that, paradoxically, it’s going to reduce safety everywhere else. Whether we like it or not, we’re all connected and it’s in our interest to help them tamp this down and control it.”

Frieden said that they cannot wait for vaccines to deal with the disease.

“Vaccines and treatments may come along, but right now what we have are tried and true methods that we have to scale up. They have worked in prior outbreaks but we are not getting to scale,” Frieden told “CBS This Morning.” “The epidemic is going faster than we are. We need to scale up our response. We can hope for new tools and maybe they’ll come, but we can’t count on them.”

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Ukraine eyes coal imports to bolster fuel stocks: Unrealistic and costly, warn experts
September 02, 16:21 UTC+4

MOSCOW, September 02. /ITAR-TASS/. Fuel-hungry Ukraine, facing winter frosts, deprived of Russian gas and with coal stocks enough for just 50 days, is looking to New Zealand, Australia and possibly the United States for new supply. But this could deal the country’s crippled finances another blow, Russian industry experts warn.

Aging coal-fired power plants, fed in the past by fuel from Ukraine’s coal-rich but now battle-torn Donetsk region, may need massive investment to burn fuel arriving from different sources – at a higher cost, they say.

“Thermal power plants in Ukraine are designed for a certain type of coal that used to be produced in the east of the country,” said Deputy Director General of the National Energy Security Fund Alexei Grivach.

"If the imported fuel does not fit into this category, plants must be upgraded, demanding major investment. It is a big question whether the Kiev authorities will manage to do this,” he said.
Ukraine’s energy and coal ministry has announced import plans to keep the country warm as cold days draw near.

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Posted at 1:52 PM (CST) by & filed under Jim's Mailbox.

Dear Jim,

The Saudis are the next in line to be taken down.

Regards,
CIGA Gilgamisch

Saudi Arabia arrests 88 men for ‘plotting attacks’

Saudi Arabia has arrested 88 people accused of plotting attacks inside and outside the country, officials say.

The interior ministry said the men had been monitored for several months before their arrest and "were on the verge of carrying out operations".

Police say three of the men are from Yemen, one is still being identified and the rest are Saudis.

Correspondents say Saudi Arabia has stepped up its security amid Islamic State’s offensive in Iraq and Syria.

Interior ministry spokesman Mansour al-Turki did not give any details about the plots but said 59 of the men had previously served prison sentences for similar offences.

More…

 

Jim,

The power of Siberia is a great sounding name for the largest pipeline in the world.

Putin gives start to Power of Siberia gas pipeline construction
September 01, 15:49 UTC+4

YAKUTSK, September 01. /ITAR-TASS/. Russian President Vladimir Putin attended a ceremony in north-eastern Russia on Monday to launch the construction of the Sila Sibiri (Power of Siberia) gas pipeline intended to pump natural gas to the Russian Far East and China.

The launching ceremony was held near the village of Us Khatyn in Yakutia.

In May 2014, Russian energy giant Gazprom and China’s CNPC signed a huge $400 billion contract for the delivery of 38 billion cubic meters of natural gas to China annually for a period of 30 years.

“The new trunk gas pipeline will help considerably strengthen economic cooperation with Asia-Pacific countries, first of all, with our key partner China,” Putin said at the launching ceremony.

The Power of Siberia gas pipeline will become a gas transport system for the Irkutsk and Yakutia gas production centers and an export channel for Russian natural gas deliveries to Asia.

More…

Posted at 6:01 PM (CST) by & filed under In The News.

Jim Sinclair’s Commentary

You cannot have only one Jack.

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Putin launches world’s biggest gas pipeline network to China
Published time: September 01, 2014 10:01
Edited time: September 01, 2014 10:56

Russian President Vladimir Putin and Chinese Vice Premier Zhang Gaoli have launched the construction of the first part of Gazprom’s Power of Siberia pipeline – which will deliver 4 trillion cubic meters of gas to China over 30 years.

“The new gas branch will significantly strengthen the economic cooperation with countries in the Asia-Pacific region and above all – our key partner China,” Putin said at the ceremony outside the city of Yakutsk – the capital of Russia’s Republic of Yakutia on Monday.

Both President Putin and Vice Premier Zhang Gaoli signed the freshly-welded pipeline in – a time-honored Russian tradition. The ‘Power of Siberia’ was welded together by workers from Chayanda gas field, overseen by CEO Aleksey Miller.

"Gazprom is always a reliable supplier of gas to its customers – which also applies to the ‘Power of Siberia," Miller said.

“The gas pipeline ‘Power of Siberia’ will increase energy security and ensure Russia’s ability to fulfill export obligations,” Putin said in the opening remarks.

The 3,968 km pipeline linking gas fields in eastern Siberia to China will be the world’s largest fuel network in the world. Both Putin and Vice Premier Zhang Gaoli have called the project the world’s largest construction project, as investment from both countries will be more than $70 billion.

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Caspian Pipeline Consortium oil exports rises about 22% in August
September 01, 14:25 UTC+4

MOSCOW, September 01./ITAR-TASS/. The Caspian Pipeline Consortium (CPC), led by Russian oil pipeline monopoly Transneft, increased its oil exports by 21.6% on the year to 3.528 million tonnes in August, as seen by ITAR-TASS in the consortium’s materials on Monday.

In January-August, the consortium’s oil exports grew 20.4% to 26.076 million tons.

The Russian government holds 31% in the multinational company, which pumps oil from western Kazakhstan to a terminal at the Black Sea port of Novorossiisk.

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Patient Hospitalized in Sweden, Ebola Case Suspected – Reports
1/9/2014 19:27

MOSCOW, September 1 (RIA Novosti) – A patient suspected  to have Ebola has been hospitalized in the Swedish capital of Stockholm, Reuters reported, citing local media sources.

It is reported, that a man has recently returned from a country that is included in the "risk zone," one of the countries with previously reported cases of fatal disease.

The patient was taken to Karolinska University Hospital, where doctors put him in a detention center to run the necessary tests.

The Ebola virus has claimed 1,552 lives from 3,069 cases since December, according to the World Health Organization.

The worst Ebola epidemic in history and the first to have occurred in West Africa began in southern Guinea and soon spread to Liberia, Sierra Leone and Nigeria.

A separate outbreak in the Democratic Republic of Congo has killed 13 people.

The WHO says it could infect some 20,000 people before it is brought under control.

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