China Is Not 1914 Germany

Submitted by Robert Dujarric via The Diplomat,

Current events are frequently viewed through the prism of analogies. Words become shorthand for a particular type of situation. “Munich” equals the danger of appeasing bloodthirsty dictators, “Vietnam,” and now “Iraq/Afghanistan” means the folly of getting involved in (or, in the case of Iraq, starting) civil wars in countries whose societies the outsiders neither understand nor can effectively influence. In some cases, acting on these parallels turns out to be wise. The fear of repeating “Munich” helps explain the forceful and successful American response to Soviet expansionism at the start of the Cold War (Berlin, Korea, etc.). In other cases, they are misguided, as was the case in the Anglo-French invasion of Egypt, where Nasser was no Hitler and giving up the Suez canal would not have equated to throwing Czechoslovakia to the wolves.

The analogy that is currently in vogue in Asia is “1914.” This is a particularly complex one, as there are two distinct narratives of that fateful year. The one that was prevalent in the U.K. and the U.S. for many decades after the conflict that ensued perceived the war through the “Sarajevo” lens as a giant cataclysm in which all the players bore a share of the blame for the destruction of Western civilization. Another interpretation, which is more dominant today, is best illustrated by the late German historian Fritz Fischer’s Germany’s Aims in the First World War (1961), which assigns most of the responsibility to Berlin.

The “2014 as 1914” discussion covers both theses. Those who dread that a minor maritime collision could escalate into Armageddon subscribe to the “Sarajevo” theory, where an assassin’s bullet set off a chain reaction which even men and women of good intention could not stop. Others think that Beijing is bent on regional, if not world, domination. They see China’s hypertrophied ambitions as an early 21st century of the German Empire’s quest for power described in Fischer’s works. Many officials and analysts who refer to “1914” fall in between. They often know little about European history but see an ominous danger of war that reminds them of what they think “1914” was.

The one common threat in the “1914” warnings is that the People’s Republic is perceived as the Asian counterpart of Wilhelmine Germany. A rising continental autocracy with territorial ambitions on land and dreams of overseas expansion confronting a potential coalition of onshore (India, Vietnam, ROK, maybe even Russia) and offshore (Japan, Taiwan, parts of ASEAN, U.S.) powers. For some, Beijing’s expansionist aims are obvious; others see them as moderate and blame Washington and its allies for not accepting China’s rise, reflecting the same differences of interpretation that existed in Europe before (and after) World War 1 regarding German goals.

The critical error in this comparison is that China today bears little resemblance to Germany a century ago.

First, their domestic situation is vastly different. The Hohenzollern dynasty did face discontent at home, in particular a powerful Social-Democratic movement. But the socio-political fabric of Germany was vastly stronger than that of the People’s Republic. In comparative perspective, Prussia-Germany had enjoyed a stable and productive century prior to 1914, something that does not apply to China in 2014. Prussia-Germany was autocratic but had developed a more effective system to partially include citizens in the political process than China has. Frequent violent protests, and the massive export of capital by rich Communist Party members to overseas accounts, illustrate this point about China’s fragility. It is interesting to note German society, as in existed prior to World War I, was so solidly anchored that much of its establishment survived relatively unscathed four years of total war, defeat and revolution.

Second, we know that Germany in 1914 had an outstanding army. Estimating the worth of the PLA is harder since it has not fought a major campaign since Vietnam defeated China 35 years ago. As a military historian noted “A day’s trial by battle often reveals more of the essential nature of an army than a generation of peace.” (in Russell F. Weigley, Eisenhower’s Lieutenants, 1990) so discussions of the abilities of the PLA are hard to validate. But one thing is clear. In Imperial Germany, especially in its Prussian core, the ruling classes took military service very seriously. Young men of privilege served in the officer corps, one’s rank in the reserves of prestigious units was a source of great pride and social standing. From what we know about the sons (and daughters) of China’s elite, we are more likely to see them studying in Ivy League campuses, eating in Wall Street cafés, and living in Hong Kong flats than leading platoons and companies of soldiers in the frozen hills of Manchuria or the scorching deserts of Xinjiang.

Third, Germany was not the world’s largest economy on the eve of World War I, the United States was. But in many fields, Germany was the most advanced country on the planet. A German doctorate was the gold standard of academia until Adolf Hitler destroyed the universities. Germans led in countless disciplines, be it physics, archeology, or medicine. Germany was ahead in many industrial technologies as well. China has progressed, but its relative position lags well behind that of Germany a century ago.

Fourth, the geopolitics are different. Germany had two continental associates, the Habsburg and Ottoman empires. It took several years before the United States joined the Allies. Today, China is essentially bereft of allies and is confronting what is a de facto U.S.-Japan-Australia coalition, potentially augmented by several Asian states and under certain circumstances most of NATO Europe and Canada.

Fifth, Germany in 1914 was a demographically dynamic country. China, due to the twin consequences of the one-child policy and economic development, is aging at a rapid rate. This is not unique in Asia, but compared to its major global competitor, the United States, China is in demographic decline.

What are the implications of these facts? For China’s foes, namely the United States, Japan, and others, they mean that the situation is not as dire as it was in 1914 for Germany’s opponents (whom we should remember came close to being dealt a terminal blow in the opening stages of World War I). For the Chinese Communist Party, they imply that it would be even riskier for it to initiate a conflict than it was for the Central Powers in 1914.


    



via Zero Hedge http://ift.tt/1dhifoE Tyler Durden

Here's What Happened The Last Time "Unemployment", "Taxes", & "Inequality" Were So Correlated

While social unrest has been a thing that occurs “over there”, the increasing visualization of people taking to the streets in the face of desperate economic situations amid an elite class of politicians, dictators, and tyrants is becoming clearer by the day. As the following chart shows, across 500 billion words in over 5.2 million books, the words “unemployment, “taxes”, and “inequality” tend to correlate highly with “war”. The 18th century saw these terms the most correlated and as the following chronology suggests, that is not a time to reflect gladly upon…

The last time the words were so correlated was the 18th Century… Let’s hope it’s different this time…

That was not a ‘great’ century for mankind…

February 1700 – Great Northern War: Fighting begins between Sweden, Russia, Demark, and Saxony

1701 – War of the Spanish Succession: Fighting begins as an alliance of Britain, the Holy Roman Empire, Dutch Republic, Prussia, Portugal, and Denmark declare war to prevent a French succession to the Spanish throne

February 29, 1704 – Queen Anne’s War: French and Native American forces conduct the Raid on Deerfield

August 13, 1704 – War of the Spanish Succession: The Duke of Marlborough wins the Battle of Blenheim

May 23, 1706 – War of the Spanish Succession: Grand Alliance forces under Marlborough win the Battle of Ramillies

1707 – War of 27 Years: The Mughals are defeated ending the war

July 8, 1709 – Great Northern War: Swedish forces are crushed at the Battle of Poltava

March/April 1713 – War of the Spanish Succession: The Treaty of Utrecht ends the war

December 17, 1718 – War of the Quadruple Alliance: The French, British, and Austrians declare war on Spain after Spanish troops land on Sardinia and Sicily

June 10, 1719 – Jacobite Risings: Jacobite forces are beaten at the Battle of Glen Shiel

February 17, 1720 – War of the Quadruple Alliance: The Treaty of The Hague ends the fighting

August 20, 1721 – Great Northern War: The Treaty of Nystad ends the Great Northern War

July 1722 – Russo-Persian War: Russian troops embark for an invasion of Iran

September 12, 1723 – Russo-Persian War: The Russians compel Tahmasp II to sign a peace treaty

February 1, 1733 – War of the Polish Succession: Augustus II dies creating the succession crisis that leads to war

November 18, 1738 – War of the Polish Succession: The Treaty of Vienna settles the succession crisis

December 16, 1740 – War of the Austrian Succession: Frederick the Great of Prussia invades Silesia opening the conflict

April 10, 1741 – War of the Austrian Succession: Prussian forces win the Battle of Mollwitz

June 27, 1743 – War of the Austrian Succession: The Pragmatic Army under King George II wins the Battle of Dettingen

May 11, 1745 – War of the Austrian Succession: French troops win the Battle of Fontenoy

June 28, 1754 – War of the Austrian Succession: Colonial forces complete the Siege of Louisbourg

September 21, 1745 – Jacobite Uprising: Prince Charles’ forces win the Battle of Prestonpans

April 16, 1746 – Jacobite Uprising: Jacobite forces are defeated by the Duke of Cumberland at the Battle of Culloden

October 18, 1748 – War of the Austrian Succession: The Treaty of Aix-la-Chapelle ends the conflict

July 4, 1754 – French & Indian War: Lt. Colonel George Washington surrenders Fort Necessity to the French

July 9, 1755 – French & Indian War: Major General Edward Braddock is routed at the Battle of the Monongahela

September 8, 1755 – French & Indian War: British and colonial forces defeat the French at the Battle of Lake George

June 23, 1757 – Seven Years’ War: Colonel Robert Clive wins the Battle of Plassey in India

November 5, 1757 – Seven Years’ War: Frederick the Great wins the Battle of Rossbach

December 5, 1757 – Seven Years’ War: Frederick the Great triumphs at the Battle of Leuthen

June 8-July 26, 1758 – French & Indian War: British forces conduct the successful Siege of Louisbourg

June 20, 1758 – Seven Years’ War: Austria troops defeat the Prussians at the Battle of Domstadtl

July 8, 1758 – French & Indian War: British forces are beaten at the Battle of Carillon

August 1, 1759 – Seven Years’ War: Allied forces defeat the French at the Battle of Minden

September 13, 1759 – French & Indian War: Major General James Wolfe wins the Battle of Quebec but is killed in the fighting

November 20, 1759 – Seven Years’ War: Admiral Sir Edward Hawke wins the Battle of Quiberon Bay

February 10, 1763 – Seven Years’ War: The Treaty of Paris ends the war in a victory for Britain and its allies

August 5-6, 1763 – Pontiac’s Rebellion: The British win the Battle of Bushy Run

September 25, 1768 – Russo-Turkish War: The Ottoman Empire declares war on Russia following a border incident at Balta

March 5, 1770 – Prelude to the American Revolution: British troops fire into a crowd at the Boston Massacre

July 21, 1774 – Russo-Turkish War: The Treaty of Kuçuk Kainarji ends the war in a Russian victory

April 19, 1775 – American Revolution: The war begins with the Battles of Lexington & Concord

April 19, 1775-March 17, 1776 – American Revolutin: American troops conduct the Siege of Boston

May 10, 1775 – American Revolution: American forces capture Fort Ticonderoga

June 11-12, 1775 – American Revolution: American naval forces win the Battle of Machias

June 17, 1775 – American Revolution: The British win a bloody victory at the Battle of Bunker Hill

September 17-November 3, 1775 – American Revolution: American forces win the Siege of Fort St. Jean

December 9, 1775 – American Revolution: Patriot forces win the Battle of Great Bridge

December 31, 1775 – American Revolution: American forces are turned back at the Battle of Quebec

February 27, 1776 – American Revolution: Patriot forces win the Battle of Moore’s Creek Bridge in North Carolian

March 3-4, 1776 – American Revolution: American forces win the Battle of Nassau in the Bahama

June 28, 1776 – American Revolution: The British at defeated near Charleston, SC at the Battle of Sullivan’s Island

August 27, 1776 – American Revolution: Gen. George Washington is defeated at the Battle of Long Island

September 16, 1776 – American Revolution: American troops win the Battle of Harlem Heights

October 11, 1776 – American Revolution: Naval forces on Lake Champlain fight the Battle of Valcour Island

October 28, 1776 – American Revolution: The British force the Americans to retreat at the Battle of White Plains

November 16, 1776 – American Revolution: British troops win the Battle of Fort Washington

December 26, 1776 – American Revolution: American troops win a daring victory at the Battle of Trenton

January 2, 1777 – American Revolution: American troops hold at the Battle of the Assunpink Creek near Trenton, NJ

January 3, 1777 – American Revolution: American forces win the Battle of Princeton

April 27, 1777 – American Revolution: British forces win the Battle of Ridgefield

July 7, 1777 – American Revolution: Colonel Seth Warner fights a determined rearguard action at the Battle of Hubbardton

August 6, 1777 – American Revolution: American forces are beaten at the Battle of Oriskany

September 26-November 16, 1777 – American Revolution: American forces fight the Siege of Fort Mifflin

October 4, 1777 – American Revolution: British forces win the Battle of Germantown

September 19 & October 7, 1777 – American Revolution: Continental forces win the Battle of Saratoga

Decebmer 19, 1777-June 19, 1778 – America
n Revolution: The Continental Army winters at Valley Forge

June 28, 1778 – American Revolution: American troops engage the British at the Battle of Monmouth

August 29, 1778 – American Revolution: The Battle of Rhode Island is fought north of Newport

February 14, 1779 – American Revolution: American forces win the Battle of Kettle Creek

July 16, 1779 – American Revolution: Brigadier General Anthony Wayne wins the Battle of Stony Point

September 16-October 18, 1779 – American Revolution: French & American troops conduct the failed Siege of Savannah

September 23, 1779 – American Revolution: John Paul Jones captures HMS Serapis

March 29-May 12 – American Revolution: British forces win the Siege of Charleston

May 29, 1780 – American Revolution: American forces are defeated at the Battle of Waxhaws

October 7, 1780 – American Revolution: American militia wins the Battle of Kings Mountain in South Carolina

January 17, 1781 – American Revolution: Brig. Gen. Daniel Morgan wins the Battle of Cowpens

March 15, 1781 – American Revolution: American troops bleed the British at the Battle of Guilford Court House

April 25, 1781 – American Revolution: British troops win the Battle of Hobkirk’s Hill in South Carolina

September 5, 1781 – American Revolution: French naval forces win the Battle of the Chesapeake

September 8, 1781 – American Revolution: British and American forces clash at the Battle of Eutaw Springs

October 19, 1781 – American Revolution: General Lord Charles Cornwallis surrenders to Gen. George Washington ending the Siege of Yorktown

April 9-12, 1782 – The British win the Battle of the Saintes

September 3, 1783 – American Revolution: American independence is granted and the war concluded by the Treaty of Paris

April 28, 1789 – Royal Navy: Acting Lieutenant Fletcher Christian deposes Lieutenant William Bligh during the Mutiny on the Bounty

July 9-10, 1790 – Russo-Swedish War: Swedish naval forces triumph in the Battle of Svensksund

April 20, 1792 – Wars of the French Revolution: The French Assembly votes to declare war on Austria beginning a series of conflicts in Europe

September 20, 1792 – Wars of the French Revolution: French forces win a victory over Prussia at the Battle of Valmy

June 1, 1794 – Wars of the French Revolution: Admiral Lord Howe defeats the French fleet at the Glorious First of June

August 20, 1794 – Northwest Indian War: General Anthony Wayne defeats the Western Confederacy at the Battle of Fallen Timbers

July 7, 1798 – Quasi-War: The US Congress rescinds all treaties with France beginning an undeclared naval war

August 1/2, 1798 – Wars of the French Revolution: Rear Admiral Lord Horatio Nelson destroys a French fleet at the Battle of the Nile

 

+++++++++++++

 

So perhaps it’s time to think of someone aside from the 1% when undertaking monetary policy…


    



via Zero Hedge http://ift.tt/1hG2csd Tyler Durden

Here’s What Happened The Last Time “Unemployment”, “Taxes”, & “Inequality” Were So Correlated

While social unrest has been a thing that occurs “over there”, the increasing visualization of people taking to the streets in the face of desperate economic situations amid an elite class of politicians, dictators, and tyrants is becoming clearer by the day. As the following chart shows, across 500 billion words in over 5.2 million books, the words “unemployment, “taxes”, and “inequality” tend to correlate highly with “war”. The 18th century saw these terms the most correlated and as the following chronology suggests, that is not a time to reflect gladly upon…

The last time the words were so correlated was the 18th Century… Let’s hope it’s different this time…

That was not a ‘great’ century for mankind…

February 1700 – Great Northern War: Fighting begins between Sweden, Russia, Demark, and Saxony

1701 – War of the Spanish Succession: Fighting begins as an alliance of Britain, the Holy Roman Empire, Dutch Republic, Prussia, Portugal, and Denmark declare war to prevent a French succession to the Spanish throne

February 29, 1704 – Queen Anne’s War: French and Native American forces conduct the Raid on Deerfield

August 13, 1704 – War of the Spanish Succession: The Duke of Marlborough wins the Battle of Blenheim

May 23, 1706 – War of the Spanish Succession: Grand Alliance forces under Marlborough win the Battle of Ramillies

1707 – War of 27 Years: The Mughals are defeated ending the war

July 8, 1709 – Great Northern War: Swedish forces are crushed at the Battle of Poltava

March/April 1713 – War of the Spanish Succession: The Treaty of Utrecht ends the war

December 17, 1718 – War of the Quadruple Alliance: The French, British, and Austrians declare war on Spain after Spanish troops land on Sardinia and Sicily

June 10, 1719 – Jacobite Risings: Jacobite forces are beaten at the Battle of Glen Shiel

February 17, 1720 – War of the Quadruple Alliance: The Treaty of The Hague ends the fighting

August 20, 1721 – Great Northern War: The Treaty of Nystad ends the Great Northern War

July 1722 – Russo-Persian War: Russian troops embark for an invasion of Iran

September 12, 1723 – Russo-Persian War: The Russians compel Tahmasp II to sign a peace treaty

February 1, 1733 – War of the Polish Succession: Augustus II dies creating the succession crisis that leads to war

November 18, 1738 – War of the Polish Succession: The Treaty of Vienna settles the succession crisis

December 16, 1740 – War of the Austrian Succession: Frederick the Great of Prussia invades Silesia opening the conflict

April 10, 1741 – War of the Austrian Succession: Prussian forces win the Battle of Mollwitz

June 27, 1743 – War of the Austrian Succession: The Pragmatic Army under King George II wins the Battle of Dettingen

May 11, 1745 – War of the Austrian Succession: French troops win the Battle of Fontenoy

June 28, 1754 – War of the Austrian Succession: Colonial forces complete the Siege of Louisbourg

September 21, 1745 – Jacobite Uprising: Prince Charles’ forces win the Battle of Prestonpans

April 16, 1746 – Jacobite Uprising: Jacobite forces are defeated by the Duke of Cumberland at the Battle of Culloden

October 18, 1748 – War of the Austrian Succession: The Treaty of Aix-la-Chapelle ends the conflict

July 4, 1754 – French & Indian War: Lt. Colonel George Washington surrenders Fort Necessity to the French

July 9, 1755 – French & Indian War: Major General Edward Braddock is routed at the Battle of the Monongahela

September 8, 1755 – French & Indian War: British and colonial forces defeat the French at the Battle of Lake George

June 23, 1757 – Seven Years’ War: Colonel Robert Clive wins the Battle of Plassey in India

November 5, 1757 – Seven Years’ War: Frederick the Great wins the Battle of Rossbach

December 5, 1757 – Seven Years’ War: Frederick the Great triumphs at the Battle of Leuthen

June 8-July 26, 1758 – French & Indian War: British forces conduct the successful Siege of Louisbourg

June 20, 1758 – Seven Years’ War: Austria troops defeat the Prussians at the Battle of Domstadtl

July 8, 1758 – French & Indian War: British forces are beaten at the Battle of Carillon

August 1, 1759 – Seven Years’ War: Allied forces defeat the French at the Battle of Minden

September 13, 1759 – French & Indian War: Major General James Wolfe wins the Battle of Quebec but is killed in the fighting

November 20, 1759 – Seven Years’ War: Admiral Sir Edward Hawke wins the Battle of Quiberon Bay

February 10, 1763 – Seven Years’ War: The Treaty of Paris ends the war in a victory for Britain and its allies

August 5-6, 1763 – Pontiac’s Rebellion: The British win the Battle of Bushy Run

September 25, 1768 – Russo-Turkish War: The Ottoman Empire declares war on Russia following a border incident at Balta

March 5, 1770 – Prelude to the American Revolution: British troops fire into a crowd at the Boston Massacre

July 21, 1774 – Russo-Turkish War: The Treaty of Kuçuk Kainarji ends the war in a Russian victory

April 19, 1775 – American Revolution: The war begins with the Battles of Lexington & Concord

April 19, 1775-March 17, 1776 – American Revolutin: American troops conduct the Siege of Boston

May 10, 1775 – American Revolution: American forces capture Fort Ticonderoga

June 11-12, 1775 – American Revolution: American naval forces win the Battle of Machias

June 17, 1775 – American Revolution: The British win a bloody victory at the Battle of Bunker Hill

September 17-November 3, 1775 – American Revolution: American forces win the Siege of Fort St. Jean

December 9, 1775 – American Revolution: Patriot forces win the Battle of Great Bridge

December 31, 1775 – American Revolution: American forces are turned back at the Battle of Quebec

February 27, 1776 – American Revolution: Patriot forces win the Battle of Moore’s Creek Bridge in North Carolian

March 3-4, 1776 – American Revolution: American forces win the Battle of Nassau in the Bahama

June 28, 1776 – American Revolution: The British at defeated near Charleston, SC at the Battle of Sullivan’s Island

August 27, 1776 – American Revolution: Gen. George Washington is defeated at the Battle of Long Island

September 16, 1776 – American Revolution: American troops win the Battle of Harlem Heights

October 11, 1776 – American Revolution: Naval forces on Lake Champlain fight the Battle of Valcour Island

October 28, 1776 – American Revolution: The British force the Americans to retreat at the Battle of White Plains

November 16, 1776 – American Revolution: British troops win the Battle of Fort Washington

December 26, 1776 – American Revolution: American troops win a daring victory at the Battle of Trenton

January 2, 1777 – American Revolution: American troops hold at the Battle of the Assunpink Creek near Trenton, NJ

January 3, 1777 – American Revolution: American forces win the Battle of Princeton

April 27, 1777 – American Revolution: British forces win the Battle of Ridgefield

July 7, 1777 – American Revolution: Colonel Seth Warner fights a determined rearguard action at the Battle of Hubbardton

August 6, 1777 – American Revolution: American forces are beaten at the Battle of Oriskany

September 26-November 16, 1777 – American Revolution: American forces fight the Siege of Fort Mifflin

October 4, 1777 – American Revolution: British forces win the Battle of Germantown

September 19 & October 7, 1777 – American Revolution: Continental forces win the Battle of Saratoga

Decebmer 19, 1777-June 19, 1778 – American Revolution: The Continental Army winters at Valley Forge

June 28, 1778 – American Revolution: American troops engage the British at the Battle of Monmouth

August 29, 1778 – American Revolution: The Battle of Rhode Island is fought north of Newport

February 14, 1779 – American Revolution: American forces win the Battle of Kettle Creek

July 16, 1779 – American Revolution: Brigadier General Anthony Wayne wins the Battle of Stony Point

September 16-October 18, 1779 – American Revolution: French & American troops conduct the failed Siege of Savannah

September 23, 1779 – American Revolution: John Paul Jones captures HMS Serapis

March 29-May 12 – American Revolution: British forces win the Siege of Charleston

May 29, 1780 – American Revolution: American forces are defeated at the Battle of Waxhaws

October 7, 1780 – American Revolution: American militia wins the Battle of Kings Mountain in South Carolina

January 17, 1781 – American Revolution: Brig. Gen. Daniel Morgan wins the Battle of Cowpens

March 15, 1781 – American Revolution: American troops bleed the British at the Battle of Guilford Court House

April 25, 1781 – American Revolution: British troops win the Battle of Hobkirk’s Hill in South Carolina

September 5, 1781 – American Revolution: French naval forces win the Battle of the Chesapeake

September 8, 1781 – American Revolution: British and American forces clash at the Battle of Eutaw Springs

October 19, 1781 – American Revolution: General Lord Charles Cornwallis surrenders to Gen. George Washington ending the Siege of Yorktown

April 9-12, 1782 – The British win the Battle of the Saintes

September 3, 1783 – American Revolution: American independence is granted and the war concluded by the Treaty of Paris

April 28, 1789 – Royal Navy: Acting Lieutenant Fletcher Christian deposes Lieutenant William Bligh during the Mutiny on the Bounty

July 9-10, 1790 – Russo-Swedish War: Swedish naval forces triumph in the Battle of Svensksund

April 20, 1792 – Wars of the French Revolution: The French Assembly votes to declare war on Austria beginning a series of conflicts in Europe

September 20, 1792 – Wars of the French Revolution: French forces win a victory over Prussia at the Battle of Valmy

June 1, 1794 – Wars of the French Revolution: Admiral Lord Howe defeats the French fleet at the Glorious First of June

August 20, 1794 – Northwest Indian War: General Anthony Wayne defeats the Western Confederacy at the Battle of Fallen Timbers

July 7, 1798 – Quasi-War: The US Congress rescinds all treaties with France beginning an undeclared naval war

August 1/2, 1798 – Wars of the French Revolution: Rear Admiral Lord Horatio Nelson destroys a French fleet at the Battle of the Nile

 

+++++++++++++

 

So perhaps it’s time to think of someone aside from the 1% when undertaking monetary policy…


    



via Zero Hedge http://ift.tt/1hG2csd Tyler Durden

Look In The Mirror, America!

Submitted by L. Todd Wood of LToddWood.com,

Listening to the media gleefully hype the numerous construction flaws and rumors of corruption at the Sochi Olympics, I couldn’t help thinking that Americans in general have no clue about Russia.  Since I spend a lot of time in Moscow, I thought I would point out some of the similarities and differences.

So let’s talk about corruption.  Yes, Russia has systemic governmental corruption from the local to the national level; politicians up and down the line have their hand in the pie.  Yes, there were billions stolen in Sochi.  This corruption pushes up the cost of everything in Russia and prevents her economy from modernizing.  That is why Russia was recently voted 92nd in ease of doing business by the World Bank.

However, these billions don’t come close to the $800+ billion that was wasted by the economic stimulus the Obama administration enacted in 2009.  Most of the money went to pay back supporters and lined public service union pockets–attempting to head off the rightsizing of state governments that will eventually have to take place.  What about the auto bailouts where again billions were paid to unions and bond holders were left holding the bag, preventing the rationalization of labor costs that would have taken place in a normal bankruptcy process?  How about the Federal government using the IRS and other government agencies to target the opposition?  And come on, does anyone believe the case against Dinesh D’Souza was brought as a result of a normal FBI review?  What about the $600+ million that was spent on the website for the Affordable Care Act?  There is a strong case to be made that corruption in the United States siphons more money out of our economy than in Russia. Luckily the American economy has been resilient enough to overcome this hurdle.

Yes, Putin and other officials have palatial dachas in the countryside.  But I wonder if they were more expensive than all of the global vacations the Obama’s have taken?  And yes, Putin has stifled the free press in Russia; in America, the corrupt press does the bidding of the Democratic Party.  Which is worse?

Moving on to infrastructure, Russia has serious infrastructure deficiencies, especially outside the major cities.  However, if you ever want to see a true, massive work of art, ride the Moscow metro.  Every station is a gleaming architectural masterpiece with marble, statues, mosaics, and chandeliers.  And, it’s clean and well maintained and safe.  All one has to do is ride the New York subway once to see the difference.  Talk about third world!  The tiling is falling off, escalators often don’t work, riders are accosted by the homeless and panhandlers, the elevators stink of urine, etc.  And I have to agree with Joe Biden, LaGuardia is a third world disgrace.  JFK and Newark are second world.  I wish Americans could see Sheremetyevo Airport in Moscow, then they would understand.  It’s a gleaming metropolis of modernity with a very nice Aeroexpress train to the capital city.

Let’s take a look at culture.  In Russia, most people speak several languages.  Education is valued.  Kids are loaded down with work every night in mathematics, literature, the sciences, history, etc.  The Russian historical appreciation of the arts is well documented.  And I’m not talking about a canvas smeared with feces, I’m talking about ballet, classical music, and theater.  I heard recently a young girl tell her mother in Moscow, “Mom, there was a girl in my class today who hadn’t heard of Vivaldi.  Can you imagine not knowing Vivaldi?”  I think that question speaks for itself.  Just ask your child who Vivaldi was.  In contrast, the American education system is collapsing under a union driven agenda of dumbing down our children and the promotion of socialist values.  It was recently reported that one fourth of Americans don’t know the Earth revolves around the Sun, case closed.

And speaking of airports, one notices another thing getting off the plane in America.  We are fat.  We are not sturdy, or strong, or plus -sized.  We are fat.  There is no obesity epidemic in Russia.  People spend time cooking with things like fresh vegetables and enjoy the taste of things rather than filling themselves to the gills with processed carbohydrates and sugars.

And last but not least, yes there is organized crime in Russia.  It’s a problem.  Like any country, there are places that are not safe.  But what you don’t see are gangs of teenagers looking to knock out someone of a different race.  Instead of looking for who is committing crime in America, the administration looks to remove the consequences of one’s actions by making it illegal for employers to conduct background checks and campaigns for felons to be able to vote (to garner more Democratic votes).  I haven’t even brought up our refusal to enforce immigration law.

Don’t get me wrong, I’m a patriot.  I served my country.  I’m proud of her history and what she used to represent.  But I’m not proud of what’s going on today.  I don’t recognize America.  She is sinking into a moral and cultural black hole of corruption.  Russia is regaining her rightful, historical place in the world that was sidetracked by the communist revolution.  America is spending her days thinking of ways to pick your pocket–we’ll cheat the other guy and pass the savings on to you.

Russia is rising.  Maybe we can give her a high five on our way down.  Instead of criticizing others, look in the mirror America.


    



via Zero Hedge http://ift.tt/1bXjA9o Tyler Durden

The Eastern Ukrainians Are Revolting

It is hardly surprising, given the drastically divided nation, that when Vitali Klitschko's pro-European political party ventured to Kerch – a city of the eastern edge of Ukraine in the Crimea region – things did not go entirely according to plan… This is the region that Russia has stated it is willing to go to war over and is deep in the pro-Russia territory… headlines galore are coming out of Ukraine but all that matters now is the Russian response

 

Especially after Tymoshenko's earlier comments:

  • *TYMOSHENKO URGES PROTESTERS TO STAY IN INDEPENDENCE SQUARE
  • *UKRAINIANS OBLIGED TO BRING YANUKOVYCH BACK TO KIEV: TYMOSHENKO
  • *TYMOSHENKO: UKRAINE MAY BRING CHANGES IN OTHER EX-SOVIET STATES
  • *TYMOSHENKO: UKRAINE WILL HELP OTHER COUNTRIES UNDER `DICTATORS'

 

 

A EuroMaidan meeting does not go quite as planned in the east/west of Ukraine…

 

As is clear from this map – the nation is desparately divided (Kerch is on the eastern corner of the Crimea peninsula at the bottom on the map)…

 

As Russia warned before…

"If Ukraine breaks apart, it will trigger a war,” the official said. “They will lose Crimea first [because] we will go in and protect [it], just as we did in Georgia.” In August 2008, Russian troops invaded Georgia after the Georgian military launched a surprise attack on the separatist region of South Ossetia in an effort to establish its dominance over the republic.

 

 

The brief conflict with Georgia pitted Russia indirectly against the US and Nato, which had earlier tried to put Georgia on a path to Nato membership. The Kremlin regards the Georgian conflict as the biggest stand-off between Russia and the west since the end of the Cold War and it has fed determination in Moscow to push back against what it believes to be western attempts to contain Russia.

 

 

The warning of a similar scenario comes because Ukraine’s civil conflict has fanned tension in Crimea. On the peninsula, located on the northern coast of the Black Sea where Russia’s Black Sea Fleet is stationed, ethnic Russians make up almost 60 per cent of the population, with Ukrainians and Crimean Tatars accounting for the rest.

 

 

Volodymyr Konstantinov, speaker of Crimea’s parliament, said on Thursday that the region might try to secede from Ukraine if the country split. “It is possible, if the country breaks apart,” he told the Russian news agency Interfax. “And everything is moving towards that.” Russian media also quoted him as saying Crimeans might turn to Russia for protection.

Some humor might help…

 

But it's pretty clear who they blame…


    



via Zero Hedge http://ift.tt/1p9Futp Tyler Durden

As Facebook’s $19 Billion Whatsapp Purchase Crashes (And May Be Hacked), Its Competitor Is Exploding

Update: after 3 or so hours of downtime, Whatsapp is Backapp. For now.

It has been an inauspicious beginning for the most ridiculous internet purchase since the last dot com bubble – Facebook’s $19 billion acquisition of Whatsapp. Several hours ago, Whatsapp left its 400+ million users (each of which cost Facebook almost $50) in the dark, after the service went offline and has yet to provide a reason for the crash.

The only status update released by Whatsapp was the following tweet:

One would think $19 billion buys some grammar lessons…

So while Facebook’s newly acquired subs are scrambling to figure out why they cant send a text message halfway around the world for free, and are considering using the iMessenger service, which would also achieve the same result, also for free, one well known hacking group, Anonymous, has implied it may be involved in the crash.

Needless to say, adding insult to corporate sellout inury for Whatsapp’s users would be a Snapchat like hacking which exposes millions of crotchshots for all to see. Which perhaps explains why while Whatsapp is scrambling to get back up, one clear winner has already emerged: Telegram (based in Berlin, Germany) is getting 100 new registrations…PER second!

At this pace, and assuming there are greater than Facebook fools out there, it will be worth over $1 trillion in mere months.

And now back to the regularly scheduled lessons in barriers to entry. And lack thereof.


    



via Zero Hedge http://ift.tt/1hFJKQp Tyler Durden

As Facebook's $19 Billion Whatsapp Purchase Crashes (And May Be Hacked), Its Competitor Is Exploding

Update: after 3 or so hours of downtime, Whatsapp is Backapp. For now.

It has been an inauspicious beginning for the most ridiculous internet purchase since the last dot com bubble – Facebook’s $19 billion acquisition of Whatsapp. Several hours ago, Whatsapp left its 400+ million users (each of which cost Facebook almost $50) in the dark, after the service went offline and has yet to provide a reason for the crash.

The only status update released by Whatsapp was the following tweet:

One would think $19 billion buys some grammar lessons…

So while Facebook’s newly acquired subs are scrambling to figure out why they cant send a text message halfway around the world for free, and are considering using the iMessenger service, which would also achieve the same result, also for free, one well known hacking group, Anonymous, has implied it may be involved in the crash.

Needless to say, adding insult to corporate sellout inury for Whatsapp’s users would be a Snapchat like hacking which exposes millions of crotchshots for all to see. Which perhaps explains why while Whatsapp is scrambling to get back up, one clear winner has already emerged: Telegram (based in Berlin, Germany) is getting 100 new registrations…PER second!

At this pace, and assuming there are greater than Facebook fools out there, it will be worth over $1 trillion in mere months.

And now back to the regularly scheduled lessons in barriers to entry. And lack thereof.


    



via Zero Hedge http://ift.tt/1hFJKQp Tyler Durden

Smoking Cigars By A Mountain Of Napalm

Submitted by Simon Black of Sovereign Man blog,

I need to caveat this missive and highlight that I am not a pessimistic person. I’ve traveled to so many places over the years– well over 100 countries. And I typically visit 30-40 each year.

So I’ve seen first hand the tremendous opportunity that exists in the world, and the incredible way that human beings innovate to overcome challenges.

But the reality is that the world is on fire right now. In some places, like Ukraine or Thailand, quite literally.

In many others (like Japan, China, and much of southern Europe), there are heaps of smoldering embers beneath a continent-wide funeral pyre.

And in the Land of the Free, it’s as if politicians and central bankers are smoking their back-room cigars at the foot of a mountain of napalm and thermite that grows ever-higher by the day.

If you step back and look at the big picture, there is cause for concern.

For one, the tiniest elite has achieved record wealth thanks to the endless money printing of central bankers. The richest 300 people in the world alone addded $524 billion to their fortunes in 2013, while billions of other people across the planet pay higher prices for food and fuel.

This gap between rich and poor has grown to its widest since the Great Depression… and I would argue in many ways since the feudal system.

Obviously this isn’t a tirade against wealth, but rather the massively disproportionate benefits realized by a tiny elite at the expense of everyone else. And it exists because there is no separation between Bank and State. As Henry Ford said,

“It is well enough that the people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning.”

Well, it’s happening. People might not fully understand how central banking works. But they know there is something very rotten in the system.

And they’re starting to realize that it doesn’t have anything to do with a single party, or an individual. Even in the Land of the Free, more voters than ever are disgusted by both parties and identify with neither.

This is fundamentally what’s happening in Ukraine. People understand the system is rotten to its core– that a band of criminals has taken control, and that ‘elections’ will only serve to put a new band of criminals in control.

It is precisely what will likely play out in southern Europe, where unemployment among the youth (i.e. those of revolutionary age) is astoundingly high. And potentially even in the Land of the Free.

It’s an uncomfortable and contentious notion, I know. But this rotten system is fundamentally the same in the developed west. The only difference is there is even more debt underpinning it.

Every living creature has a breaking point. It is in our instincts to rise up when threatened.

And rather than watching these kinds of events unfold on TV thinking, “That could never happen here,” I would suggest looking at the situation rationally, and historically. Many great civilizations before arrogantly assumed the same thing.

So the question to ask is, “Am I prepared if this kind of turmoil ever comes to my doorstep?”


    



via Zero Hedge http://ift.tt/1dgJfVq Tyler Durden

World’s Most Notorious Drug-Lord – Billionaire Mexican Cartel Boss “El Chapo” – Captured

The world’s most notorious and powerful drug lord, Joaquin “El Chapo” Guzman Loera, has reportedly been captured in Mexico. The head of the Sinoloa Cartel – nicknamed Chapo or "shorty" – was caught last night, according to the AP, at a hotel resort in Mazatlan in a joint US-Mexico operation. Forbes ranked Guzman 67 out of 72 on their list of the World’s Most Powerful People. With revenues believed to exceed $3bn, his Sinaloa cartel is easily the most powerful in Mexico, responsible for an estimated 25% of all illegal drugs that enter the U.S. via Mexico. While this may appear good news (catching a big bad guy), Stratfor warns "this could spark a wave of violence throughout northwestern Mexico if internal shifts evolve into intra-cartel conflict."

 

Via Forbes,

In 2011, Forbes writer Nathan Vardi reported on how the kingpin had surpassed Pablo Escobar to become the biggest ever. “Chapo has a vast criminal enterprise and he has become the leading drug trafficker of all time,” a senior U.S. Drug Enforcement Administration official told Forbes. “He is the godfather of the drug world.”

 

Last February the city of Chicago branded him the first “Public Enemy No. 1″ since Al Capone.

 

 

Will another stint in prison really bring the end of El Chapo? It didn’t before. During his previous eight years in the clink Guzman continued to manage his cartel via cell phone, while enjoying access to booze, women and a home entertainment system. It was in January 2001, when facing extradition to the U.S., that he slipped into a laundry cart and was rolled out to freedom.

 

Via Stratfor,

The Mexican military and U.S. authorities captured a top leader of the Sinaloa Federation, Joaquin "El Chapo" Guzman Loera, in an unnamed hotel in Mazatlan, Sinaloa state, sometime during the night of Feb. 21. Guzman, who has long eluded authorities, faces several federal drug trafficking indictments and is on the Drug Enforcement Administration's most-wanted list. Reportedly, the hotel had been under surveillance for five weeks prior to the arrest, but Guzman had arrived in Mazatlan only days earlier, fleeing military operations in Culiacan.

 

El Chapo was partly responsible for the expansion of the Sinaloa Federation into the territories of rival Mexican transnational criminal organizations, commonly referred to as cartels. He also helped oversee the expansion of Sinaloa Federation operations beyond Mexico, most notably drug trafficking routes into Europe and Asia. Since December, however, the Sinaloa Federation has suffered from a series of substantial arrests, impacting the cartel wing led by Ismael "El Mayo" Zambada Garcia. The cartel has also faced rising challenges in its areas of operations by regional crime networks as well as other transnational criminal organizations. The tempo and success of operations targeting top Sinaloa Federation leaders will severely hamper the cartel's ability to defend its operations in northwestern Mexico, possibly leading to substantial violence in several areas as rival criminal organizations seek to exploit the cartel's new vulnerabilities.

 

Like most of Mexico's major transnational criminal organizations, the Sinaloa Federation is led by a collection of crime bosses, each with their own network, operating under a common banner. In addition to Guzman, other notable top-tier leaders include Zambada and Juan Jose "El Azul" Esparragoza Moreno. These  leaders guide the Sinaloa Federation's overall strategy and activity throughout Mexico, as well as its transnational operations. With Guzman now in custody, the remaining top bosses, along with several less-prominent leaders, will look to maintain the Sinaloa Federation's control over Guzman's network. This could spark a wave of violence throughout northwestern Mexico if internal shifts evolve into intra-cartel conflict.

 

A more likely source of violence — one that could occur alongside an internal Sinaloa Federation feud — would be a push by the Sinaloa Federation's rivals for control over drug trafficking operations in current Sinaloa Federation territories, including Baja California, Sonora, Durango, Chihuahua, and Sinaloa states. Should Guzman's arrest effectively create opportunities for rivals to pursue territorial gains at the expense of the Sinaloa Federation, Stratfor would expect to see an increase in inter-cartel violence on some scale, as well as a military response to contain or even preempt possible violence, in any area of the aforementioned states.

The last image – from 1993 – of the drug lord… (doesn't look so tough?! 😉

 

and his gun…


    



via Zero Hedge http://ift.tt/1grTwjJ Tyler Durden

World's Most Notorious Drug-Lord – Billionaire Mexican Cartel Boss "El Chapo" – Captured

The world’s most notorious and powerful drug lord, Joaquin “El Chapo” Guzman Loera, has reportedly been captured in Mexico. The head of the Sinoloa Cartel – nicknamed Chapo or "shorty" – was caught last night, according to the AP, at a hotel resort in Mazatlan in a joint US-Mexico operation. Forbes ranked Guzman 67 out of 72 on their list of the World’s Most Powerful People. With revenues believed to exceed $3bn, his Sinaloa cartel is easily the most powerful in Mexico, responsible for an estimated 25% of all illegal drugs that enter the U.S. via Mexico. While this may appear good news (catching a big bad guy), Stratfor warns "this could spark a wave of violence throughout northwestern Mexico if internal shifts evolve into intra-cartel conflict."

 

Via Forbes,

In 2011, Forbes writer Nathan Vardi reported on how the kingpin had surpassed Pablo Escobar to become the biggest ever. “Chapo has a vast criminal enterprise and he has become the leading drug trafficker of all time,” a senior U.S. Drug Enforcement Administration official told Forbes. “He is the godfather of the drug world.”

 

Last February the city of Chicago branded him the first “Public Enemy No. 1″ since Al Capone.

 

 

Will another stint in prison really bring the end of El Chapo? It didn’t before. During his previous eight years in the clink Guzman continued to manage his cartel via cell phone, while enjoying access to booze, women and a home entertainment system. It was in January 2001, when facing extradition to the U.S., that he slipped into a laundry cart and was rolled out to freedom.

 

Via Stratfor,

The Mexican military and U.S. authorities captured a top leader of the Sinaloa Federation, Joaquin "El Chapo" Guzman Loera, in an unnamed hotel in Mazatlan, Sinaloa state, sometime during the night of Feb. 21. Guzman, who has long eluded authorities, faces several federal drug trafficking indictments and is on the Drug Enforcement Administration's most-wanted list. Reportedly, the hotel had been under surveillance for five weeks prior to the arrest, but Guzman had arrived in Mazatlan only days earlier, fleeing military operations in Culiacan.

 

El Chapo was partly responsible for the expansion of the Sinaloa Federation into the territories of rival Mexican transnational criminal organizations, commonly referred to as cartels. He also helped oversee the expansion of Sinaloa Federation operations beyond Mexico, most notably drug trafficking routes into Europe and Asia. Since December, however, the Sinaloa Federation has suffered from a series of substantial arrests, impacting the cartel wing led by Ismael "El Mayo" Zambada Garcia. The cartel has also faced rising challenges in its areas of operations by regional crime networks as well as other transnational criminal organizations. The tempo and success of operations targeting top Sinaloa Federation leaders will severely hamper the cartel's ability to defend its operations in northwestern Mexico, possibly leading to substantial violence in several areas as rival criminal organizations seek to exploit the cartel's new vulnerabilities.

 

Like most of Mexico's major transnational criminal organizations, the Sinaloa Federation is led by a collection of crime bosses, each with their own network, operating under a common banner. In addition to Guzman, other notable top-tier leaders include Zambada and Juan Jose "El Azul" Esparragoza Moreno. These  leaders guide the Sinaloa Federation's overall strategy and activity throughout Mexico, as well as its transnational operations. With Guzman now in custody, the remaining top bosses, along with several less-prominent leaders, will look to maintain the Sinaloa Federation's control over Guzman's network. This could spark a wave of violence throughout northwestern Mexico if internal shifts evolve into intra-cartel conflict.

 

A more likely source of violence — one that could occur alongside an internal Sinaloa Federation feud — would be a push by the Sinaloa Federation's rivals for control over drug trafficking operations in current Sinaloa Federation territories, including Baja California, Sonora, Durango, Chihuahua, and Sinaloa states. Should Guzman's arrest effectively create opportunities for rivals to pursue territorial gains at the expense of the Sinaloa Federation, Stratfor would expect to see an increase in inter-cartel violence on some scale, as well as a military response to contain or even preempt possible violence, in any area of the aforementioned states.

The last image – from 1993 – of the drug lord… (doesn't look so tough?! 😉

 

and his gun…


    



via Zero Hedge http://ift.tt/1grTwjJ Tyler Durden