Ed’s Daily Notes for March 14th   Leave a comment

FridayLOLCAT

Washington Examiner: John Kerry: Russia has until Monday to reverse course in Ukraine

Secretary of State John Kerry warned of serious repercussions for Russia on Monday if last-ditch talks over the weekend to resolve the crisis in Ukraine failed to persuade Moscow to soften its stance.

Kerry will travel to London for a Friday meeting with Russian Foreign Minister Sergey Lavrov ahead of a Sunday referendum vote in the Crimea region to secede from Ukraine and join the Russian Federation.

Russia’s response:

New York Times: Russian Troops Mass at Border With Ukraine

With a referendum on secession looming in Crimea, Russia massed troops and armored vehicles in at least three regions along Ukraine’s eastern border on Thursday, alarming the interim Ukraine government about a possible invasion and significantly escalating tensions in the crisis between the Kremlin and the West.

The announcement of the troop buildup by Russia’s Defense Ministry was met with an unusually sharp rebuke from Chancellor Angela Merkel of Germany, who warned that the Russian government must abandon what she called the politics of the 19th and 20th centuries or face diplomatic and economic retaliation from a united Europe.

Putin’s response:

Putin(hat tip to Cheezburger.com for the pic)

Seriously, what do you expect from Putin? The world has a post-World War I mentality. He is taking advantage of it.

John Kerry’s “serious repurcussions” threat? Even I don’t take that seriously.

Angela Merkel’s “diplomatic and economic retaliation”? Putin’s response: “I hope you have lots of candles Angie!” Putin knows Europe would be cutting off it’s nose to spite it’s face if they did sanctions. He also knows that the U.S. isn’t ready to supply Europe with energy, at least not without sending energy costs up. What will that do to the world economy?

Are the U.S. and Europe ready to commit economic seppuku for the Ukraine? Think Sudetenland, circa 1938. We just need someone to play the Neville Chamberlain role…

The Guardian: China’s Li Keqiang warns investors to prepare for wave of bankruptcies

The flying tiger has just been grounded. Or is that a “black swan”?

China is braced for a wave of industrial bankruptcies as its slowing economy forces companies with sky-high debts to the wall, the country’s premier has said.

Premier Li Keqiang told lenders to China’s private sector factories they should expect debt defaults as the world’s second largest economy encounters “serious challenges” in the year ahead.

While Ukraine has a lot of attention today, and could turn into our black swan event, I lean more towards China’s economic collapse as the real black swan. Or maybe there’s two black swans?

Black Swan(hat tip to Free Picture for the pic)

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Posted March 14, 2014 by edmcgon in Humor, Market Analysis, News, Politics

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