Friday 30/8 Reads

British MPs reject military intervention in Syria (RT)

Uncertain Market Digests Splintering Of Syria Pro-War Alliance (Zerohedge)

Oil Prices Lead to Hard Financial Limits (Financial Sense)

How an Insular Beltway Elite Makes Wars of Choice More Likely (The Atlantic)

Higher Interest Rates – Bond Vigilantes Hold Upper Hand Over Central Banks (The Market Oracle)

Syrians In Ghouta Claim Saudi-Supplied Rebels Behind Chemical Attack (MintPres News)

Wednesday 28/8 Reads

The Global QE Exit Crisis (Project Syndicate)

Stocks end near lows, Dow skids over 150 as Syria fears escalate; Vix spikes 12% (CNBC)

Saudis offer Russia secret oil deal if it drops Syria (Telegraph)

Italy is the Weak Link in Europe (Zerohedge)

Obama’s Bluff (Stratfor)

Prosecutors Find New $175 Mln Property Scam in Russian Defense Ministry Case (Ria Novosti)

U.S. missing 7.4 million jobs, economist calculates (Marketwatch)

Tuesday 27/8 Reads

Syria Intervention: Anticipating Russia’s Response (The National Interest)

Despite “Austerity” Greek Debt Is Rising At Its Fastest Rate Since March 2010 (Zerohedge)

Debt, Inflation and Economy – Trying To Stay Sane In An Insane World (The Market Oracle)

15 Signs That Obama Has Already Made The Decision To Go To War With Syria (Economic Collapse Blog)

Obama’s Half-Measures to War With Syria (The American Conservative)

 

Manufacturing Consent in Syria

The Syrian affair has been evolving quite poorly for the western powers,particularly these past few months,when the tide has been gradually shifting in favour of the government forces,as opposition and radical islamic factions have been for the most part losing ground and retreating in key strategic areas.At best for the opposition and their western backers,we have reached at this point a stalemate,where more major gains by the Syrian Army are unlikely but the resources of the Islamist fanatics and other opposition fighters are spreading thin,while the much-needed support by the local populace is virtually non-existent after a successive number of atrocities committed by these so-called freedom fighters.

In order to save face and rescue their assets on the ground,the western powers were in a desperate need to find an excuse for intervening in Syria.After staging heinous crimes in the ground and trying to blame the Syrian Army to no effect,the ideal raison d’être for any interventionist effort was the old and tried one-WMD,weapons of mass destruction.After all it worked perfectly in Iraq 10 years ago,so why not try it again?In reality,a potential failure in Syria would have grave symbolic and practical repercussions for the western world,in effect undermining the core of its strategic planning,portraying the limits of its power to achieve global governance and act as the de facto global ruler-the prime goal of power centers in Washington,London and Brussels.

To that end,the western media-as always obedient to their governments,and unwilling to check even the most obvious facts-have been in concert selling the story of an alleged attack by chemical weapons,perpetrated by Assad’s forces against a rebel controlled area near Damascus.UN inspectors have been welcomed by the Syrian government in order to inspect the site of the alleged attack but even so,western powers are already condemning Assad and calling for a forceful response.A repeat of the Libya scenario is the desired outcome,while at this point there is no talk of boots on the ground,excluding special forces units of western states that have been operating in tandem with opposition forces as they did in Libya.

When a crime is perpetrated,as the case is in the Syria attack,in order to establish the guilty party,one has to ask the question who has the most to gain from it.Assad,having effectively repelled the main effort by the opposition and their western handlers to topple his government,has gone on the offensive achieving great gains and pushing his enemies to a dire position.Deploying WMDs would achieve very limited military targets while constituting an existential threat by paving the way for a western intervention.In short,it would be suicide for the Syrian government at the time when it has the momentum on its side to provide the perfect excuse for its enemies to use all their means at their disposal against it.For the opposition though it makes perfect strategic sense,just prior to the Geneva II conferance,to stage such an attack in collaboration with their western handlers in order to undermine or cancel the conferance,avoiding an unfavourable result,and potentially gaining the advantage on the ground after the Syrian army’s fighting capability has been severely reduced following a bombing campaign.

In our view there is little doubt that the latest attack,whose scope or exact nature has not yet been defined,was nothing more than yet another staged attack,to act as a propaganda tool to justify intervention on the part of the West,spearheaded by the US.It would be instructive to remember a few similar incidents perpetrated by the same actors-the western states-the past century.Most prominent and less crafty-since it was a German operation-the notorious Gleiwitz incident that heralded the beginning of WWII as Germany invaded Poland.When the US was seeking a way to intervene more forcefully in Vietnam,it staged the Gulf of Tonkin confrontations leading to an escalation of the conflict and eventually the Vietnam War.In recent history,who can forget the dramatic Nayriah “testimony”,worthy of a trained actor,that was part of a massive PR campaign to lure american public in support of the war?And finally the WMD stunt,similar to the one unfolding in Syria when the US needed to invade Iraq to finish the job of the first Gulf War and Collin Powell’s  memorable UN performance.

Market Update 23/8: S&P,WTI,GOLD and VIX

 

SPX_23_8

 

S&P appears to be reversing its recent contraction move,heading back to the 1700 territory as indicated by healthy RSI and MACD readings,while the index is trading again within the bollinger band limits.

 

WTI_23_8

Oil(WTI) has been consolidating above the crucial 103$ level since early July,having confirmed a reverse head&shoulders pattern that brought the price close to the 110$ level.An RSI reading slightly above 50 and MACD stabilizing above 0,support a continued consolidation scenario within the 103-107$ range.Geopolitical tensions in the Middle East will likely keep pressure on the price despite downward pressure from the fragile global economy,particularly in the stagnated Europe.

GOLD_23_8

 

Gold maintains the weak momentum of a typical bear market rally that brought the price just below 1400$.To call the coveted metal’s bear market over will take much more than this though,even if some commentators and dedicated gold bugs have been doing so this past weeks.Should the price approach the 1500$ level and consolidate close to that price range,the ‘end of the bear market’ scenario will certainly gain merit.

VIX_23_8

 

 

 

Friday 23/8 Reads

Emerging market rout threatens wider global economy (Telegraph)

Reinventing Feudalism in America: How can existing home sales go up when mortgage applications are falling? (Dr.Housing Bubble)

How the Fed could cause another 1987 crash (Marketwatch)

American, Israeli And Jordanian Troops And CIA Agents Have Entered Syria, Le Figaro Reports (Zerohedge)

Should America Help Britain Hold onto Its Colonies? (The National Interest)

Fukushima inspectors ‘careless’, Japan agency says, as nuclear crisis grows (Reuters)