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"
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.
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
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.
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.
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.
‘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.