Puppet Masters
The country's share of US sovereign debt saw a gradual decline from $157 billion in March to $140 billion as of the end of August, according to the latest US Treasury report. RBI needed US dollars to sell in the market to stop the steep slide of its currency, the rupee. The bank has sold foreign currencies worth $18.6 billion in the spot market since April to rein the value of the rupee.
Foreign portfolio investors (FPI) have pulled out more than $10 billion of their investments in the Indian markets since April. That has resulted in rupee losing more than 10 percent in value against the dollar.
Washington can be commended at least on laying its cards on the table with Friday's announcement by Donald Trump that he was considering withdrawing from the Gorbachev-Reagan 1987 agreement, which limits both sides from producing intermediate range missiles.
But the news is likely to cast a pall over Bolton's two-day visit, during which the National Security Advisor will meet not only his Russian counterpart Nikolay Patrushev, but foreign minister Sergey Lavrov and, on Tuesday, likely Vladimir Putin himself, though the face-to-face has not been given final approval by the Kremlin.
"I can assure you our objective is to make sure that sanctioned transactions do not occur whether it's through SWIFT or any other mechanism," US Treasury Secretary Steven Mnuchin told Reuters on Sunday. "Our focus is to make sure that the sanctions are enforced."
After tearing up the 2015 Iran nuclear deal (JCPOA) in May to introduce sanctions against the Islamic Republic, the first round of American punitive measures targeting metals trading, coal, industrial software, and the auto sector took effect in August.
A second round, scheduled to take effect on November 4, will target Iran's oil sales and the central bank.
While the Trump administration is pressuring its allies to cut Iranian oil imports to "zero" next month, the White House also seeks to hit Tehran hard by cutting the country off from SWIFT, a Belgian-based financial messaging service. In doing so, Iran would lose its ability to be paid for its exports and to pay for imports.
Comment: By exerting additional pressure, the US is hastening the implementation of SWIFT alternatives and the dollar's demise.
- Iran planning ways to bypass SWIFT payment system & US sanctions
- Vassals fighting back? Europe creating 'special payment channel' threatening dollar's reserve status
- Russian central bank boasts of "operational" SWIFT alternative as defense against US sanctions
- Swift turn: German FM states Europe needs bank transactions system independent of US

An ultra-Orthodox Jewish man walks past a poster in Jerusalem, depicting former Israeli prime minister Ehud Olmert April 15, 2010.
Olmert told TV channel i24NEWS that his six-year prison sentence for graft and bribery - he was released on parole last year, after serving just 16 months - was the result of trumped up charges.
"The nature of the allegations against me...were really at the end of the day very ridiculous, very insignificant...it was clear to me that those who were after me were ready to do everything, everything in order to get rid of me...," he said.
"It was big operation, largely financed by rich Jews from America."
Comment: The entire thread is worth reading here. Some other choice comments by Mr. Olmert:
- Olmert on Netanyahu: "Netanyahu's time is over. He's gone. If he doesn't know it yet, I know it."
- "Let's not exaggerate the threat that theses rockets pose to the State of Israel . . . The rocket attacks are very unpleasant, they don't pose any strategic threat to the security of the State of Israel."

Online attackers who targeted Jamal Khashoggi were part of a broad effort ordered by Crown Prince Mohammed bin Salman and his close advisers to silence Saudi critics.
He would see the work of an army of Twitter trolls, ordered to attack him and other influential Saudis who had criticized the kingdom's leaders. He sometimes took the attacks personally, so friends made a point of calling frequently to check on his mental state.
"The mornings were the worst for him because he would wake up to the equivalent of sustained gunfire online," said Maggie Mitchell Salem, a friend of Mr. Khashoggi's for more than 15 years.
Mr. Khashoggi's online attackers were part of a broad effort dictated by Crown Prince Mohammed bin Salman and his close advisers to silence critics both inside Saudi Arabia and abroad. Hundreds of people work at a so-called troll farm in Riyadh to smother the voices of dissidents like Mr. Khashoggi. The vigorous push also appears to include the grooming - not previously reported - of a Saudi employee at Twitter whom Western intelligence officials suspected of spying on user accounts to help the Saudi leadership.
The killing by Saudi agents of Mr. Khashoggi, a columnist for The Washington Post, has focused the world's attention on the kingdom's intimidation campaign against influential voices raising questions about the darker side of the crown prince. The young royal has tightened his grip on the kingdom while presenting himself in Western capitals as the man to reform the hidebound Saudi state.
Comment: The knives are out for the Saudis. Of course, there are agendas within agendas behind this sudden change in media sentiment, but really, it's Saudi Arabia. They had it coming.

US Secretary Of State Mike Pompeo (C) , National Security Advisor John Bolton (L) and United States Ambassador to the United Nations Nikki Haley
Just in recent days, the Islamic State has seized 700 hostages in a part of Syria controlled by US-backed forces and are executing some ten a day until unspecified demands are met.
How could that be, if the US insists it has IS on the run? Going back to the Obama administration, the US has a history of protecting such jihadi fighters. The intent is to create a Sunni enclave inside Syria to impede any western Iranian or Shia militia advancement into Syria.
Comment: Remember the practicalities along with the ideological goals. Not only will the neocons benefit Israel politically from continuing the turmoil in Syria, it opens the door for resource extraction. Israel wants to secure the Golan in perpetuity to exploit the oil deposits there. The US wants to hang on, through its Kurdish proxies, to the richest deposits east of the Euphrates, along with created a 'second Israel' (Kurdistan) to be a thorn in Iran's side. Russian intervention, at Syria's invitation, has thrown a wrench in the scheme, but the rabid neocons aren't ready to give up yet. A few hundred dead civilians in Deir ez-Zor, even US citizens, don't figure into the calculus.
- Is the U.S. waging Israel's wars?
- Golan Heights oil discovery sheds new light on the destabilization of Syria
- US Building New Base in Oil Rich Area in Deir ez-Zor, Syria
- Is Syrian War all about oil? German online newspaper makes the case
- Syria regime change, oil, Israel, and Western genocide
- Washington neocons are about to run amok
- The Rise of the Generals
"It's true, friends from different European countries have asked me, suggested it," Salvini said when asked during an interview with La Repubblica daily. "It is nice that they see me as a point of reference for the people's defense, even outside Italy."
Salvini, the 45-year-old leader of the rightwing North League, has risen to pan-European prominence after forming a government as part of a counterintuitive coalition with the leftist Five Star Movement. The two opposing forces were brought together on a platform of anti-establishment Euroscepticism and Italian nationalism. While he would not commit to running for the office during the interview and said instead he would have to think about it, the suggestion clearly highlights his leadership among right-wing forces in Europe.
Comment: Salvini might just pull it off. He is pushing back for Italy against the barmy regime ruling the European Union. His stance on migrants and fiscal policy have made him very popular with Italians, and European citizens more generally. He is finding fellow travelers in France, Austria, and especially Hungary, who agree with him on the imperative to defend national interests first.
- Poll shows nearly 70% of Italians back Salvini's stand against EU on migrant ferries
- "This is what I am paid to do": Italy's Salvini challenges prosecutor after blocking migrant ship carrying 190 mostly male Africans
- 'You have the right to defend yourself and property': Declares Italy's Salvini amidst surge in self-defence weapons requests
- Italian eurosceptic party leader Matteo Salvini wants to close illegal mosques, says Islam "incompatible with Italian values"
- Italian PM Salvini says EU deficit reduction rules limit infrastructure spending which risks lives
- Italian Deputy PM Salvini's truth salvo: 'Brussels only understands language of money, not values'
- EU trying to "swindle" UK out of Brexit, May should pull out of talks without deal - Italian minister Salvini
- Salvini to meet Orban in Milan
Two top Palestinian officials arrested by Israeli forces over the weekend were held on suspicion helping abduct a Palestinian resident of Jerusalem, who was also a US citizen, their lawyers said on Sunday.
Israeli forces arrested Palestinian Authority Jerusalem Governor Adnan Ghaith and Jihad Faqih, the Jerusalem director of the PA General Intelligence Services, on Saturday, but declined to say why.
However, the two are suspected of having assisted in abducting a resident of Jerusalem two weeks ago, who has since been held by the Palestinian Authority in the West Bank, their lawyers told the Reuters news agency. Both men deny the charges.

Journalist Jamal Khashoggi (L) pictured outside the embassy before his disappearance. A man identified as Mustafa al-Madani (R), wearing Khashoggi's clothes hours later
"You don't need a body double for a rendition or an interrogation," the official reportedly told CNN. "Our assessment has not changed since October 6. This was a premeditated murder and the body was moved out of the consulate."
Surveillance footage allegedly provided by Turkish authorities to CNN purports to show Khashoggi's lookalike, named as Mustafa al-Madani, leaving the Saudi Consulate in Istanbul via the rear entrance, wearing the journalist's own clothes that he wore on October 2. Madani also dons a fake beard and glasses to appear more like his alleged victim.
Comment: It's starting to appear as if the Saudi hit team really thought they could get away with this. That makes it slightly less likely that this was a frame-up with the purpose of tarnishing MBS's PR image. That's not to say the murder was premeditated. It still may have been accidental - but the presence of a decoy at least implies they were prepared for Khashoggi's death as a possibility.
And MBS's denials are wearing a bit thin, too, if this latest allegation proves to be true:
Crown Prince Mohammad bin Salman phoned Jamal Khashoggi and tried to convince him to return to Riyadh, just moments before the dissident journalist was killed in the kingdom's Istanbul consulate, a new report claims.Perhaps MBS wasn't expecting Khashoggi to deny his 'request' as Crown Prince. It's not hard to believe MBS's henchmen then took matters into their own hand, not wishing to displease His Grand Eminence. Or maybe MBS is just arrogant enough to think he could get away with it. In fact, that may be the case:
The prince contacted Khashoggi shortly after he was detained inside the consulate, Turkish pro-government paper Yeni Safak reported on Sunday, citing its own sources. According to the publication, Mohammad bin Salman, known in the West by his initials MBS, attempted to convince the journalist over the phone to return to his homeland, Saudi Arabia. Once close with the Saudi elites, Khashoggi fled the kingdom last year in fear of possible prosecution.
The journalist declined the prince's offer to fly to Riyadh, thinking he would be arrested and killed there, and was then murdered by the Saudi hit-team after the talk with MBS ended, the paper wrote.
As the disappearance of Mr. Khashoggi escalated into a diplomatic crisis, Prince Mohammed was shocked by the backlash. He couldn't understand why Mr. Khashoggi's disappearance was such a big deal, according to people who recently interacted with the prince.
...
On Oct. 10, eight days after Mr. Khashoggi went missing, Prince Mohammed called Jared Kushner, the adviser and son-in-law to President Trump, according to people briefed on the phone conversation.
Why the outrage, Prince Mohammed asked in English.
...
The prince's confusion soon turned into rage. "He was really shocked that there was such a big reaction to it," said a person close to the royal court. "He feels betrayed by the West. He said he would look elsewhere and he will never forget how people turned against him before evidence was produced."

Migrants holding a Honduran flag march through Mexico en route to the US
"Sadly, it looks like Mexico's Police and Military are unable to stop the Caravan heading to the Southern Border of the United States," Trump tweeted on Monday. "Criminals and unknown Middle Easterners are mixed in. I have alerted Border Patrol and Military that this is a National Emergency. Must change laws!"
Originating in Honduras two weeks ago, the 'caravan' has since swelled in numbers, and thousands of migrants are now marching through Mexico in a mile-long, ten-abreast convoy. Believing their odds to be greater in numbers, the migrants have already passed through Guatemala and have another 1,600 miles to go through Mexico until they reach the US' southern border.
Comment: Does Trump have a plan to counter the actions of those who have 'produced' the caravan?
- Who's financing the "spontaneous" migrant caravan trekking towards the United States? Here are some clues
- 5,000 now heading north, mystery men hand out cash as migrant "attack caravan" regroups at Guatemala-Mexico border
- Honduras and Soros behind migrant caravans?
- Pompeo: Migrant caravan is using human shields to break through the border with Mexico
- Trump to call the military to close Mex border as arrival of migrant caravan is days away










Comment: By using the dollar as a weapon the US is hastening its demise as a reserve currency: