Puppet Masters
Analysts link the ruble growth to dividend payouts and the tax season, as well as nervous emerging market investors shifting their money from Turkey after this weekend's attempted coup.
Overall, the Russian currency has gained 17 percent this year, the most in emerging markets after Brazil's real. The ruble exchange rate, which was traditionally tied to the oil price, was performing better than crude which traded at $47.71 per barrel Monday.
The head of the monetary and financial department of Citibank's local branch Denis Korshilov explained the ruble's rally by the peak tax season in Russia. Companies are now paying dividends and converting funds into rubles, thus strengthening the currency, he told business daily Vedomosti. The Russian tax period started on Friday and will peak on July 25.
Hungary is heading for a general election next year, and many see the move as an attempt to show the government's ability to avoid austerity programs and to act without outside help.
In 2008, amid the global crisis Hungary was saved from bankruptcy with a $26 billion rescue package from the IMF and the EU. Two years later Prime Minister Viktor Orban's government decided not to renew the deal to avoid closer IMF scrutiny of its economic policies. However, in 2011, Economy Minister Matolcsy turned to IMF for a precautionary deal but didn't get any reply.
In February 2013 Prime Minister Orban issued the country's first international bond since 2011, thus demonstrating the country could go it alone by borrowing on global financial markets.
Relations between Orban's government and the IMF have always been strained. In 2010, when Orban came to power, his government issued new laws, which were criticized as curtailing democracy, the justice system and freedom of speech. The European Parliament responded with a resolution calling on Hungary to repeal the "anti-democratic changes."
Hungary still owes $2.125 billion to the IMF from its original credit line of $25.5 billion.

Turkish Prime Minister Binali Yildirim chairs a cabinet meeting in Ankara, Turkey, July 18, 2016.
The staffers' property were confiscated.
Late on July 15, the Turkish government said that a coup attempt was taking place in the country. The Erdogan regime repelled the attempt by early Saturday. Thousands of military, judiciary and civil service members have been detained or removed from the office in Turkey.
Turkish President has accused Fethullah Gülen of orchestrating the failed coup and called on the United States to extradite him to Turkey. Gulen has denied any involvement in the coup attempt.
Comment: Further reading: Erdogan benefits from Turkish coup attempt because it failed, not because he engineered it
ISIS had been contentrated a significant number of manpower and military hardware along the highway between Palmyra and Deir Ezzor to strengthen the group's ongoing advance on the ancient city. However, heavy air strikes of Russian fighter jets don't allow terrorists to use the advantage in the manpower.
Menawhile, Syrian warplanes destroyed terrorists units near the town of al-Salamiyah in Hama province, claiming lives of "scores of terrorists," according to pro-government sources.
The intensification of air raids in Homs and Hama came amid heavy clashes in northern Latakia and near the city of Aleppo where the Syrian army is trying to breach the terrorist defenses.
But Hillary Clinton's expected choice as Defence Secretary, Michèle Flournoy, has just co-authored a report by the Centre for a New American Security (CNAS) in Washington that recommends that the destruction of Isis should no longer be the overriding objective of the US in Syria, but that equal priority should be given to taking military action against President Bashar al-Assad and the Syrian Army. A new pro-US armed opposition would be built up to fight Assad, Isis, al-Nusra and other al-Qaeda clones, a process that the report admits could take years - and "during that time the dangers posed by Isis will remain". This is not a marginal opinion among hawks in Washington, as a recently leaked memo from 51 serving State Department officials argued very much the same thing.
This proposed change of policy by a Clinton administration is all too likely, going by her past record of choosing military solutions to complex problems even when it means fighting more than one war at a time and when the outcome is unclear. As a Senator, she voted for the Iraq war in 2003 and, as Secretary of State in 2011, she was the driving force behind the Nato military intervention in Libya that overthrew Muammar Gaddafi and handed over the country to criminalised warlords. Her opinions normally coincide with those on the hawkish end of the US foreign policy establishment, whose policies Obama contemptuously described in a famous interview with The Atlantic Monthly as "the Washington Playbook". Once Hillary Clinton is in the White House, the "Playbook" that Obama so despises will be very much back in business. A frightening preview of what is to come can be found in the CNAS report, which comes across as a caricature of Washington wishful thinking that is woefully detached from real conditions on the ground.
Comment: Hillary Clinton, the frozen-hearted 'IS' Princess. If the US is hated around the globe now, take a deep breath. The future, with Killary, will make the past few years seem like a walk in the park.
He made his remarks during a talk with the heads of Russian regions and Chinese provinces and the managers of companies from both countries. The expo is an annual industrial exhibition held since 2014 within the framework of the Harbin Trade Fair. "We're developing an understanding for the rocket and space industry for possible interaction in such profound and technologically complex projects as the future exploration of the Moon, Mars and piloted cosmonautics," he said.
Rogozin added that both countries have the potential to implement such impressive projects as trust exists both at the political level and at the level of specialists solving these issues.

A RAF Lockheed Martin F-35B fighter jet hovers during flying demonstration in Britain.
The firm, which is supplying the UK's controversial new F-35 fighter aircraft and turrets for the military's new Ajax fighting vehicles, hopes to use the UK as a base to export kit to Gulf States like Qatar.
Asked if Brexit would boost the country's figurative stock, Hewson said: "I'm sure potentially it could. It depends on the government and the policies it puts in place. "We find it already an attractive place to invest. One of the things we are working on is exporting from the UK to other countries. We've just expanded our Ampthill facility and added 40 jobs. We've already spent about £23 million in that facility over the past 10 years to make it a centre of excellence for turret manufacture," she added.
The F-35 deal figures highly in Lockheed's' calculations. The US company stands to make more than £300 billion from the deal, which is the most expensive program of its kind ever undertaken. The fighter's destiny is tied to that of the UK's forthcoming Queen Elizabeth Class aircraft carriers, which, while wracked with delays, are due to enter service by 2020.
Comment: War is big business. The bigger the conflict, the more money is in the pockets of those who serve war. It is a catastrophe loop: the more people killed and cities destroyed, the more valuable become the goods that facilitate, and the more money is in the pockets of those who perpetuate. Just business, the biggest and most lucrative one on the planet.
Turkish Minister Blames US Authorities for Organizing Coup Attempt
Kerry Blasts Turkey for Insinuating that Washington Plotted Coup of Erdogan
Erdogan was undeterred and he went on to publicly declare "Dear President Obama, I told you this before, arrest Fethullah Gulen or return him to Turkey. You didn't listen. I call you on you again, after the coup attempt - extradite this man from Pennsylvania to Turkey. If we are strategic partners, do what is necessary," Erdogan said. He also explicitly called any nation supporting Gulen "an open enemy of Turkey."
Now we need to remember that Erdogan has a history of zigs followed by zags, so I would not put it past him to warmly embrace Obama in the near future, but I find that unlikely. Why? Simply because there is a lot of indirect evidence that the USA was, indeed, behind this coup. Consider this:
The coup involved a very large number of people. We can get a sense of the magnitude of this coup by looking at the huge purge now taking place in Turkey. According to various sources it includes no less than 6'000 people, many senior officers (including 5 generals and 29 colonels), 2'745 judges and prosecutors. So the first thing we need to ask ourselves is how likely is it that the USA did not know what was being prepared by the coup plotters? I submit that in a country essentially at war, where US forces which are involved in combat operations in nearby Syria and Iraq are deployed and where the US reportedly keeps 50 tactical nuclear weapons, the notion that the USA did not see this coming is far fetched. Turkey is a NATO member state, which in practical terms means that the US has full control over the Turkish military, and we know thanks to Sibel Edmonds that the Turkish deep state has very close ties to the US deep state - and we are to believe that nobody in the USA saw this coming?
Furthermore, when Erdogan says that the USA did not hurry to condemn the coup, he is absolutely correct. In fact, it was rather amusing for me to see that all the western media was indicating that the coup had succeeded, while the Iranians and Russians reported that the coup had failed. If that was case of wishful thinking on both sides, what does it tell us about the wishes?
Comment: It would not be hard for Russia to come out the uninvolved winner of the coup. The US has a trend towards complicated but ineffective action. Erdogan has something to gain but something to lose. And Russia smartly sits back and watches the show, protecting its menu of options.
Angela Eagle, whose voting record includes backing the war in Iraq, served as shadow business secretary under Corbyn before making a tearful resignation. It later transpired she had registered an 'Angela for Leader' website two days previously. Welsh MP Owen Smith was not in parliament at the time of the Iraq War, so is untainted by its legacy. He has also sought to position himself as an anti-austerity candidate of the soft-left. On Monday he somewhat controversially declared himself as "normal" because he has a wife and children. It is unclear whether he was delineating himself from Eagle, who is openly lesbian.
Comment: Joe Quinn says: "So what we are witnessing is a 'soft coup' against Corbyn by the Anglo-American 'establishment', and one that has been long in the making - more or less since Corbyn was elected by an overwhelming majority of Labour party members."
See also:
- Corbyn issues video online: Calls for UK Labour Party members to "come together" and stand against Tory leadership
- Jeremy Corbyn: 'The reality of the British empire should be taught in schools'
- Jeremy Corbyn win revitalizing UK's Labour Party, Cameron sulks, snipes

Turkish civilians celebrate the failure of a likely CIA-inspired coup against their President Erdogan
Three main possibilities are currently on offer: 1) the Turkish government's claim that the coup was organized by Turkish exile Fethullah Gulen in collaboration with the U.S. (CIA, NATO); 2) an authentic, Turkey-based military faction (usually identified as secular Kemalists) unhappy with Erdogan's 'Islamist' policies; and 3) the "#TheaterNotCoup" meme sourced to Politico's Ryan Heath, which alleges that Erdogan planned the coup as a false-flag operation, his very own Reichstag to purge opposition and solidify his dictatorial control (unsurprisingly, Gulen supports this version). None of these options quite work. Or at the very least, if one of them is true, it is not that simple.












Comment: Money woes are just another hook by which the PTB lay claim to floundering countries, or countries they have set up to flounder. That one of the borrowers is "getting away," hopefully will set a larger trend.