Puppet MastersS


Chess

OPEC: No freeze agreement on crude production quotas - Saudis promise to 'play nice'

OPEC oil prices
© Heinz-Peter Bade / ReutersThe logo of the Organization of the Petroleum Exporting Countries (OPEC) is pictured at its headquarters in Vienna, Austria
The Organization of the Petroleum Exporting Countries (OPEC) was unable to agree on a new production quota. However, Saudi Arabia promised it won't significantly boost production to corner more market share.

"We will be very gentle in our approach and make sure we don't shock the market in any way," Saudi Arabia's new energy minister Khalid al-Falih told reporters.

Saudi Arabia was backing a 32.5 million barrels per day (bpd) ceiling, which may be regarded as an attempt to repair relations with Nigeria, Algeria, Venezuela and other OPEC members. Some are reportedly angry with Riyadh for backing out of a production freeze deal between major crude exporters in April. Particularly, those countries whose economies were especially hard-hit by sliding crude prices.

Comment: There is good reason to be wary of Saudi promises about oil production. The country is going broke as it follows its master's orders to depress oil prices in order to hurt Russia.


Георгиевская ленточка

Right on schedule: Russia exits recession

Putin sly smile
Indicators for first quarter and for April point to a strengthening recovery.

Russia's economic indicators for the four months of the year and for April point to an end to the recession.

The GDP contraction in the period January to April was 1.1% compared to the same period last year. In April it was just 0.1%.

Industrial production in April actually grew 0.5% in annual terms. This is partly a reflection of the base effect, with industrial production appearing stronger by comparison with the sharp contraction in the second quarter of 2015. However there does appear to be a genuine industrial recovery underway. The Manufacturing Purchasing Managers' Index (PMI) elaborated by Markit improved from 48.0 in April to 49.6 in May, where a figure below 50 points to contraction and a figure above 50 points to expansion.

As might be expected in a recession driven principally by a collapse in demand caused by last year's inflation spike, the strongest indicators of recovery are in the services sector, reflecting the recovery in real incomes which is currently underway. Here the PMI points to strong expansion, climbing from 52.0 in March to 54.2 in April.

Comment: Putin's patient strategy of guiding Russia to a position of self-reliance is starting to pay off.


Snakes in Suits

Sultan Erdogan's latest rants: Insulting women and threatening any nation that defies his will

erdogan
© Adem Altan / AFP
Love him or hate him, Turkish President Recep Erdogan makes for great television. If you thought the world of politics was boring, I suggest you plug in to his latest rant.

Before beginning my analysis, I'd like to thank Mr. Erdogan for the profound lessons he and his entourage ever so generously imparted to the world. How lucky we are to stand in the shadow of a man whose expertise encompasses all subject matters and all issues.

If I didn't know better, I would dare venture that Turkey's president suffers from a Messiah complex - thankfully such impure thoughts would never enter my subterranean brain - I am only a woman after all, and women cannot possibly hope to equal men - let alone understand them.

And so I would ask of you my fellow readers to please bask with me in the glorious wisdom Mr. Erdogan - the great Sultan of all Turkey - decided to share with us, common mortals.

President Recep Erdogan had a busy week. In the span of a few days our gallant head of state managed to anger women, make a parody of Islam, and threaten a few nations with dire reprisals should they defy his will. Who said it was easy being dictator? I must admit that when it comes to dedication to a job well done - totalitarianism - Erdogan is putting in the extra hours.

It all began with my personal favorite: "We will multiply our descendants. They talk about population planning, birth control. No Muslim family can have such an approach," said the Turkish president before ranting on: "Nobody can interfere in God's work. The first duty here belongs to mothers."

May I assume that like me your jaw hit the floor. Did Erdogan just appoint himself as God's personal spokesperson, demanding that the whole of Turkey reproduce? It appears he just gave a whole new meaning to the term 'Godspeed'.

Comment:


Stock Down

A dark road to ruin: Has Saudi Arabia lost the oil war?

Saudi oil Aramco
© John Moore/Associated Press
Poor Saudi Arabia. They don't realize it yet but they have lost their oil war. The war in its current phase began in September, 2014, when the dying King Abdullah and his Minister of Petroleum, Ali Al-Naimi, told US Secretary of State John Kerry they would gladly join Washington in plunging world oil prices. It became clear the main Saudi motive was to eliminate the new growing challenge to their control of world oil markets by forcing prices so low that the US shale oil industry would soon go bankrupt. For Kerry and Washington the focus, of course, was to economically cripple Russia in the wake of new US sanctions by damaging their revenues from export of oil. Neither achieved their aim.

Now, however, it's clear that Saudi Arabia, which along with Russia is the world's largest oil producer, is going down a dark road to ruin. Washington seems more than happy to cheer them on.

The long-term Washington strategy since at least 1992, well before September 11, 2001 and the Washington's declaration of its War on Terror, has been by hook or by crook, by color revolution or outright invasion, to directly, with US "boots-on-the-ground," militarily control the vast oil reserves and output of the major Arab OPEC oil countries. This is a long-standing institutional consensus, regardless who is President.

Comment:


Light Saber

Jeremy Corbyn promises to veto TTIP if he becomes PM: Calling it 'irreversible' privatization

Corbyn
© Peter Nicholls / ReutersBritain's opposition Labour Party leader Jeremy Corbyn
Labour leader Jeremy Corbyn promises to veto the Transatlantic Trade and Investment Partnership (TTIP) deal between the EU and US owing to concerns over "irreversible" privatization and "watered down consumer rights." Corbyn has joined French president François Hollande and a range of European politicians and campaigners in opposing TTIP in its current form. The Labour leader promised to oppose the deal while in shadow government and to ax the deal if elected prime minister.

"Thousands of people have written to me with concerns, deep concerns, about the TTIP, the deal being negotiated largely in secret between the US and EU officials. Many are concerned, quite rightly, that it could open public services to further privatization and make privatization effectively irreversible," he said at a press conference. "Others are concerned about potential watering down of consumer rights, food safety standards, rights at work or environmental protections." Corbyn pledged to reject TTIP and veto the controversial deal in government.

His announcement follows an explosive leak of TTIP documents which showed how climate protection, jobs, food safety and online privacy rights will be whittled away under the agreement. Greenpeace Netherlands published the documents last month. Executive Director of UK social justice campaign War on Want John Hilary said the leak shows TTIP "is even worse than we feared." "Today's leak shows the European Commission preparing to sell us down the river, doing deals behind closed doors that will change the face of European society forever," he added.

Comment: If your country is an EU member, then TTIP will flood your market with hormone-tainted meat and GMO - genetically-modified - food products, TTIP will take your job away.

Say goodbye to your rights with TTIP:
TTIP will prevent the introduction of any new social, public health or environmental regulations that might represent a burden on business.See also:


Info

Armenian genocide resolution: Turkey vows to take steps in response, recalls ambassador from Germany

Huseyin Avni Karslioglu, Turkish ambassador to Germany
© Tobias Schwarz / Reuters
Turkish President Recep Tayyip Erdogan has said Ankara will take retaliatory measures after the German parliament voted to recognize as 'genocide' the Armenian massacre of 1915. Turkey has already recalled its ambassador to Germany in protest.

Ambassador Huseyin Avni Karslioglu is expected to fly back to Turkey on Thursday afternoon, according to the Sueddeutsche Zeitung newspaper.

Turkey has also decided to summon Germany's charge d'affaires to the Foreign Ministry in Ankara following the vote.

Attention

King Salman denied all visits over deteriorating mental condition

Saudi Arabia's King Salman bin Abdulaziz Al Saud
Saudi Arabia's King Salman bin Abdulaziz Al Saud has been denied any manner of visits due to his deteriorating mental condition, a report says.

Saudi Defense Minister and Deputy Crown Prince Mohammed bin Salman has issued orders to the Saudi court banning any manner of meeting with the king due to his "brain damage", said the report published by the Palestinian Manar online newspaper on Wednesday, citing an informed source.

The denial of visiting rights encompasses all members of the royal family and foreign dignitaries.

Red Flag

Poroshenko has chosen former NATO chief Rasmussen to be a 'non-staff adviser'

Poroshenko greets Rasmussen
© Mykola Lazarenko / ReutersUkraine's President Petro Poroshenko (L) greets Anders Fogh Rasmussen
A former NATO Secretary General has been chosen as a new "non-staff" adviser to Ukrainian President Petro Poroshenko, according to a decree bearing his signature. However, the document implies that the ex-chief is yet to agree to the appointment.

"Appoint Anders Fogh Rasmussen as adviser to the President of Ukraine outside the official staff (subject to his consent)," says the decree also published on the Ukrainian president's official website.

Rasmussen was the twelfth Secretary General of NATO in the period from August 2009 to September 2014. He was also Danish Prime Minister from 2001 to 2009. In 2014, Poroshenko awarded Rasmussen, who still was NATO Secretary General at that time, with the Order of Freedom - the highest Ukrainian award for foreign citizens - for his "significant personal contribution to the development of cooperation between Ukraine and NATO as well as for considerable support for Ukraine's sovereignty, independence and territorial integrity."

Rasmussen is yet to comment and either confirm or deny his appointment. Last year, US Senator John McCain, also appointed by Kiev to a similar position, eventually turned down the proposal claiming that the US constitution prohibited him from getting on board.

Comment: By surrounding himself with warmongers and criminals, Poroshenko has set himself and Ukraine up for an even further descent into chaos and destruction.


Bad Guys

US being accused of undermining the World Trade Organization

World Trade Organization
Members of the WTO, including Brazil, Japan, and the EU, raise red flags as the United States intervenes in the work of the global trade court.

In an unprecedented move, the US vetoed the reappointment of Seung Wha Chang, a respected South Korean expert in international trade law whose four-year term on the seven-member resident appellate body ends today.

The sited reason for blocking the reappointment - the appellate body's decision in several cases involving the US, and a pattern of what is being called "overreaching" and "issuing abstract decisions." Or to put it bluntly - dissatisfaction over the fact that the global trade court didn't always rule in favor of the US, as it was apparently expected to.

The US told WTO members:
"The appellate body is not an academic body that may pursue issues simply because they are of interest to them or may be to certain members in the abstract. It is not the role of the appellate body to engage in abstract discussions."
Members of the WTO, including Brazil, Japan and the EU begged to differ, saying that the US objection to Mr. Chang serving a second four-year term, risks undermining the appellate body, its independence and therefore the entire dispute system.

Comment: The US attempting to stack the deck in its favor is par for the course.


Quenelle

German Parliament recognizes Ottoman crimes against Armenians in 1915 as genocide

German Palriament Bundestag
© Flickr/ Hernán Piñera
The German parliament voted on Thursday to pass a resolution recognizing the 1915-1916 massacre of Armenians by the Ottoman Empire as "genocide."

The resolution, proposed by lawmakers from the ruling coalition of Conservatives and Socialists together with the Green party, was voted through the Bundestag after an hour-long debate, with one lawmaker opposing the resolution and one abstaining.

Turkey's newly installed Prime Minister Binali Yildirim labeled the vote "absurd and wanton" in comments made Wednesday, warning that a vote on the resolution would mar German-Turkish relations.

Comment: Further reading: