On The Path To War

Thursday, August 14, 2014
By Paul Martin

by Chris Martenson
ZeroHodge.com
08/13/2014

The US is clearly now pushing Russia towards war. But if you read the signs correctly, Russia has been preparing for exactly this outcome for many years.

Out of several reasons that US power brokers specifically — but western power brokers more generally — are deeply unhappy with Russia right now is that Russia is committing a cardinal sin: it is openly, brazenly calling for an end to dollar dominance and has moved aggressively with China to achieve that aim.

No oil-rich country that has tried to move away from the dollar in the past twenty years has managed to do so without being attacked by the US, suffering a regime change, or being ruined by sanctions. In some cases, all three.

Not only has Russia managed to secure a string of heavy-duty bilateral trade and currency swap agreements over the past year, but they’ve done so despite ever-increasing threats and responses from the US and its allies. And frighteningly, the equity markets in the West are completely ignoring the nested set of risks that accompany these moves and countermoves by two geopolitical heavyweights, which range from punishing trade wars (already underway), to electronic warfare, to an actual shooting war.

Today’s “Markets”Are Untethered From Reality

I put the word “markets” in quotes above because whatever it is that passes for an equity market these days, it bears little resemblance to that of times past.

The “markets” today are using the skimpiest of evidence to support their tendency to feast on fresh central bank liquidity by either levitating higher or failing to go down much on even the most horrendous of geopolitical, economic or environmental news.

As a prime example, in the pre-market on Friday, 8/7/14, beginning in the wee hours of the morning, the S&P futures ramped up 20 points off the lows by market open, and then poured on another 20 points in the cash market.

The reason given? The possibility of calm in Ukraine:

The Rest…HERE

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