Puppet MastersS


Dollar

Proxy war: Drowning in debt, Ukraine regime takes first billion$ from West... to build a new army

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"Now boys, forget any ideas you had about actually doing anything useful for Ukrainians, first order of business is to fire the generals and build an army that's actually loyal to you. Here's the number of my contact at Academi (aka Blackwater) for starters..."
Ukraine's government mobilized reservists and approved an emergency military buildup a day after the disputed province of Crimea voted to secede from the country and become part of Russia.

But with its armed forces woefully ill-trained and poorly equipped after years of underfunding, a frustrated Ukraine continued to focus on diplomacy first.

Political leaders here hurled harsh words at Moscow and refused to give up Crimea as lost. But even as the government in Kiev took steps to shore up national defenses, it renewed calls for a diplomatic solution. Amid concerns about possible further Russian intervention in Ukraine's restive east and south, Kiev hoped for the best - ­progress in efforts to resolve the crisis - while also preparing for the worst.

Parliament approved a presidential decree mobilizing some of the country's 40,000 reservists and agreed to divert $600 million from other parts of Ukraine's budget to buy weapons, repair equipment and boost training over the next three months - a major commitment for a cash-strapped country.

Wall Street

Federal Reserves's Yellen outlines stimulus end, U.S. stocks drop

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© APFederal Reserve Chair Janet Yellen
U.S. stocks fell for the first time in three days as Federal Reserve Chair Janet Yellen said the central bank's stimulus program could end this fall and benchmark interest rates could rise six months later.

Walt Disney Co., General Electric Co. and Boeing Co. lost at least 1.4 percent to lead the Dow (INDU) Jones Industrial Average lower. Consolidated Edison Inc. led utilities to the biggest decline among 10 groups in the Standard & Poor's 500 Index. Newmont Mining Corp. lost 3 percent as gold tumbled the most in six weeks after the Fed's decision to reduce asset purchases.

The S&P 500 slipped 0.6 percent to 1,860.77 at 4 p.m. in New York. The Dow slid 114.02 points, or 0.7 percent, to 16,222.17. About 6.7 billion shares changed hands in the U.S., in line with the three-month average.

"The pace of tightening, once the Fed starts tightening, is a little bit faster than thought before and I think that's why we're getting this market reaction,"John Canally, an economic strategist at LPL Financial Corp., said in a phone interview from Boston. His firm oversees about $438.4 billion. "Being reminded that the Fed will eventually raise rates is getting traders' attention."

Piggy Bank

Russia suspected of pulling billions of foreign owned currency holdings out of the Fed's rapacious grasp

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© Daily Caller
Billions of dollars in foreign owned currency holdings have been pulled out of the United States and there's growing suspicion that the culprit is Russia attempting to circumvent any sanctions that the US may levy against the nation over the intensifying Ukrainian situation.

The Federal Reserve custody holdings report which documents "Foreign central banks' holdings of U.S. marketable securities" has fallen to the lowest level since December 2012 with more than $100 billion being removed in the week ending on Wednesday, March 13.

The Federal Reserve has not divulged the party or parties responsible, but insiders believe that there is enough circumstantial evidence to point to it being Russia - even though the amount withdrawn hasn't yet appeared in Russian hands.

Instead of selling US backed treasury bonds that they own, Russia has chosen to remove them from US banks in advance of any sanctions.

Boat

Russian forces enter Ukraine navy's Black Sea Headquarters

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© Itar-Tass/Barcroft MediaRussian president Vladimir Putin attends celebrations in Red Square on Tuesday following the Crimea referendum.
Russian flag flies above Sevastopol after Putin hails Crimea annexation and Ukraine accuses Moscow of war crime

Pro-Russian self-defence forces have entered the Ukrainian navy's Black Sea headquarters in Sevastopol and raised the Russian flag above the building less that 24 hours after Vladimir Putin announced the annexation of Crimea in a searing speech to political elites in Moscow.

In an hour-long speech in the Kremlin on Wednesday - likely to go down as one of the defining moments of his long rule over Russia - Putin said western politicians "call something white today and black tomorrow" and aired a long list of foreign policy grievances going back to 2000, saying "we were cheated again and again, with decisions being taken behind our back".

Crimean authorities have said that all Ukrainian military installations on the peninsula, including several bases, are now illegal and the soldiers must leave. Many have done so, but some remain.

Ukrainian and Russian troops had agreed a ceasefire until Friday, and the circumstances of the shootout on Tuesday remain murky

Clipboard

New doomsday poll: 99.9% risk of 2014 crash

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© Getty Images
Global risks are accelerating. This is our fourth major poll update of industry leaders: A critical review of their warnings from early last year when we first predicted a 87% risk of a crash: Bernanke's Fed saw an "unsustainable bubble" ... Gross: "credit supernova" ... Gundlach: "kaboom ahead" ... Ellis: "Don't own bonds" ... Shilling: "shocker" ... Roubini: "Prepare for perfect storm" ... Shiller: "Irrational exuberance is back" ... Schiff: "Doubling down" on "doomsday" prediction ... InvestmentNews' warning 90,000 advisers: "tick, tick ... boom!"

A few weeks later the crash risk was up to 98%. Then a dramatic preholiday uptick in investor sentiment. America's collective unconscious tired of negativity after a Halloween headline: "Economic guillotine dead ahead." A week later, 2014 became the "Year of the Boom." Bank of America's chief strategist screamed: "Bet on the bulls now." The Great Gatsby spirit was celebrating the holidays: "Even old grumpy Dr. Doom, celeb economist Nouriel Roubini, began humming a happy tune all over television: "A global recovery is going to occur, get into equities."

What really happened? Fed politics. Short-term, Larry Summers withdrew as a candidate for the Fed chairman's job. Dark cloud lifted as Janet Yellen become the pick. Wall Street cheered, Bernanke's easy-money printing presses would not screw up their year-end bonuses. Plus Main Street was mentally exhausted, tired of the bad news, relentless political drama. We needed a holiday break.

Bomb

Israel bombs Syrians in retaliation for alleged roadside bombing on Golan Heights

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© Jinipix/APA wounded soldier is carried to a helicopter after a roadside bomb hit an Israeli patrol on the Golan Heights.
Israel attacked several Syrian military sites in retaliation for a roadside bombing that wounded four of its troops on the occupied Golan Heights the previous day, the Israeli military has said.

The targets included a Syrian military headquarters, a training facility and artillery batteries. Aircraft carried out the attack early on Wednesday, said Lieutenant-Colonel Peter Lerner, an Israeli military spokesman. He described targets as military facilities on the Syrian-held side of the Golan.

Israel captured the Golan from Syria in the 1967 war and annexed it in a move not recognised abroad. Tuesday's wounding of the soldiers as they patrolled the separation line on the strategic plateau marked Israel's worst casualties there since an insurgency erupted in Syria more than three years ago.

Apple Red

Ukraine Beware! The enemy of your enemy is not always your friend

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© CounterPunchFlirting With Fascists: Proto-fascist mob in Ukraine
To progressives who have been celebrating the revolution in Ukraine: Be careful what you wish for. Ukraine now has the first European government in decades in which outright fascist parties have gained a significant role in the executive branch. In other European countries, far-right parties have won seats in the parliament, but not secured real power in the cabinet. Of course, not all Ukrainian revolutionaries are fascists or Nazis, as asserted in recent Russian propaganda. But it is equally wrong and irresponsible to assert that the presence of fascists and Nazis in the new government is merely Russian propaganda.

When the far-right Freedom Party became part of Austria's cabinet in 2000, the European Union issued sanctions against Vienna, and the New York Times was full of exposes of party leader Jörg Haider. But when the far-right Latvian National Alliance joined a conservative government in 2011, it was barely noticed in the Western media. And because the fascist party Svoboda (Freedom) and the Nazi shock troops of Pravy Sektor (Right Sector) played a vanguard role in Ukraine's anti-Russian revolution, their role in the new revolutionary government has been glossed over in the Western media, with no serious exposes so far.

So it may be controversial for far-right parties to join governments in the West, but it is permissible in the East if they are mainly opposing Russia. These same Western media commentators take any hint of criticisms of Israel as "anti-Semitic," and then support a new government with parties that use World War II-era imagery, such as the Wolfsangel logo of Svoboda, and the White Power symbol of Odin's Cross used by Pravy Sektor (ditto the Aryan Nations). The phrase "Never Again" takes on a hollow ring when the entry of real fascists into a government is minimized and excused.

People

Russia not isolated: China and India back President Putin in Crimean reunification with Russia

Russian crimea
© vluki.ru
Vladimir Putin stressed the support China showed during the UN Security Council meeting as the council sought to declare the Crimean referendum illegal. "We are grateful to all those who understood our actions in Crimea," Putin said. "We are grateful to the people of China, whose leadership sees the situation in Crimea in all its historical and political integrity. We highly appreciate India's restraint and objectivity."

Moscow vetoed the resolution, while Beijing abstained.

This step wasn't seen by mass media as clear support for the Crimean reunification and even deemed as a 'slap in the face' for Russia by Western diplomats.

Yet, the step by Beijing was considered as clever and politically far-seeing.

China wasn't able to veto the resolution on Crimea alongside Russia as it has its own domestic issues like Tibet, Xinjiang, Hong Kong and Taiwan. But it has now deepened its relations with Moscow and gained a potential ally for the future when Beijing will have to make hard political decisions.

War Whore

US ponders military exercises in Baltics in bid to reassure Russia's neighbours

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© East News/REXBiden said: ‘We are exploring a number of additional steps to increase the pace and scope of our military co-operation.’
The US is considering sending ground troops to the Baltic states on new military exercises as it seeks to reassure Nato allies in eastern Europe of its commitment to preventing further territorial incursion by Russia.

Vice president Joe Biden spoke of the plan during a meeting with the Estonian president Toomas Ilves after calls for a tougher US response to Russia's attempted annexation of the Crimea.

It follows a Pentagon announcement of extra US F-15 jets to join Nato patrols in Poland and the Baltic on March 5, and recent requests by the Ukrainian government for possible US military assistance outside the Nato area.

"We are exploring a number of additional steps to increase the pace and scope of our military co-operation, including rotating US forces to the Baltic region to conduct ground and naval exercises - as well as training missions," said Biden.

Magic Hat

Congresswoman: Obama rule change lets insurance companies keep more profits, pay less for care

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Republican Tennessee Rep. Diane Black says that the Obama administration's most recent Obamacare rule change will result in insurance companies keeping more profits while paying less for customers' health care needs.

"I am writing to express my concern with the proposed rule change released on Friday, March 14th that would allow insurance companies to keep an additional two percent of premiums for purposes other than medical care...your department is now proposing to increase the amount of money that insurance companies will be allowed to retain for profit," Black wrote in a letter Tuesday to Health and Human Services (HHS) Secretary Kathleen Sebelius, which was obtained by The Daily Caller.

HHS' Centers for Medicare and Medicaid Services quietly introduced the new rule Friday, which relieves insurance companies of some of the damage about to be levied on them by Obamacare-related administrative costs.

Comment: See Stefan Molyneux's breakdown of the 'botched plans' of Obamacare