US Guided-Missile Destroyer Truxton Has Entered The Black Sea

As we reported yesterday, after getting permission to cross the Bosphorus, the guided-missile destroyer USS Truxton departed the Greek port of Souda Bay on its way to the Black Sea. As of a few hours ago, it is already there. Sky News reports that the USS Truxtun passed the Dardanelles strait earlier today on its way to the Black Sea amid heightened tension over the crisis in Ukraine and reports that Russia has now 30,000 troops in Crimea.

The naval escalation is not the only arms build up in proximity to the Ukraine: the Pentagon said six US F-15 fighter jets have arrived in Lithuania to bolster air patrols over the Baltics. The fighter jets and 60 US military personnel landed at Siauliai Air Base in Lithuania, adding to the four F-15s and 150 troops already there to do the air patrol mission.

As for the pretext for the Truxton’s move, it is only 300 miles away from Sevastopol for one simple reason: naval exercises.

Joint naval exercises with Bulgarian, Romanian and US vessels are to take place in the Black Sea on March 11.

 

The naval forces of all three nations have stated no connection between the upcoming drill and the tensions on Ukraine’s Crimean Peninsula, where the Russian Black Sea Fleet is based, the Bulgarian National Radio has reported.

 

Vessels participating in the event include a Bulgarian frigate, three Romanian ships and US destroyer USS Truxtun. The US military described the joint military maneuvers as a “routine” deployment scheduled last year, long before the standoff in Ukraine.

 

Crimea, however, is some 500 km to the north-east of the location where the drill is to be carried out.

 

According to a statement by the US Navy, the Truxtun left Greece on Thursday after it was granted passage through the Black Sea Straits by Turkey, which controls their traffic.

 

The USS Truxtun will be at the Bulgarian city of Varna’s port from March 12 to March 14

And the Russian ICBM launch was just part of a “routine” drill too.

 


    



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Gazprom Threat Sends European Stocks Reeling

European bond markets, simply put, did not blink at anything this week (and Portugal spreads actually rallied) as the insanity of that segment of the market remains. Europe’s high-yield credit market moves to near record low spreads (on rumors of an aggressive hedge fund squeeze). But all of this beggars belief as we see European stocks giving up their post-Putin gains and collapsing today on the good-news-is-bad-news from the US but much more critically the Gazprom threats (which smashed Germany’s DAX red for 2014 and down around 2% today).

European stocks have given back most of the post-Putin gains (with Germany hardest hit as it is most affected by any retaliation from sanctions)

 

European sovereign bonds remain totally unphased

 

as it’s clear the “management” in Europe cares more about the credit markets than the stock market (as opposed to the US…)


    



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The Millennial Generation Is Proving to Be the Most Politically Independent Yet

Millennials are poised to be the most politically independent
generation yet,
according to a new survey from the Pew Research Center
.
Finally, something that makes me proud of my generation! Actually,
there’s much to like in Millennial viewpoints, from a libertarian
perspective.

Millennials—those born between roughly 1980 and 1995 (some say
2000), also known as Gen Y—are largely in favor
of marijuana legalization
 and same-sex
marriage
. They worry about the
surveillance state
. They shun
stricter gun laws
. Anecdotally, I’ve known a good deal of
young, Occupy Wall Street types who are also incredibly concerned
with police brutality, free speech, gun rights, drug policy, and
other typically libertarian issues. It’s not surprising that 50
percent of Gen Y adults now identify as politically independent (up
from 38 percent in 2004). 

Millennials aren’t necessarily less conforming to political
categories than previous generations (who were plenty paradoxical
themselves). But we’re less likely to suck it up on certain issues
in order to self-identify with either major (or any) political
party. And, sure, every recent generation has skewed more
politically independent when young. But according to Pew,
this year’s poll
recorded the highest levels of political
dissatisfaction in the past 25 years.

Philip Bump says it’s
hard to see how Pew’s new survey
 could be seen as good
news by the Republican party. But boatloads of malleable
independents can’t be bad news, either. Young
independents may tend to lean Democrat, but that’s largely because
the GOP has mucked things up so badly with social issues and is
seen as lacking its own vision of health care reform (plus the
first Republican leader most of us knew was George W. Bush).

There would seem to be room for Republicans to pick up young
independents if they toned down the culture war rhetoric and
focused more on areas where Millennials see President Barack Obama
and current Democratic leadership as failing (surveillance, drones,
drugs, etc.). But, of course, the GOP is eternally reluctant to
court more libertarian-minded voters at the perceived expense of
evangelicals. 

A few other interesting findings from Pew’s survey of 18- to
32-year-olds: 

  • Only 26 percent are married, compared with 36 percent of Gen X
    in 1997 and 48 percent of boomers in 1980. 
  • About one-third say they’re not affiliated with any
    religion. 
  • Just over half don’t believe there will be any money left in
    Social Security by the time they retire, and an additional 39
    percent think they’ll get benefits at a reduced level. 
  • Only 32 percent of Millennials say they’re “environmentalists,”
    compared to 40 percent of those in older generations.

White Millennials were more likely to prefer a smaller
government that provides fewer services (52 percent) rather than a
bigger government that provides more services (39 percent).
Non-white Millennials were more likely to favor big government (71
percent to 21 percent), which is similar to the racial divide seen
in Gen X and boomers, according to Pew. 

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NSA Privacy Chief: Civil Liberties a Top Concern

Speaking yesterday at a privacy conference NSA
Civil Liberty and Privacy Officer Rebecca Richards said, without a
hint of irony or sarcasm, that the intelligence agency considers
civil liberties a top concern.

From
The Hill
:

Civil liberties are a top concern at the National Security
Agency (NSA), the agency’s new privacy chief said Thursday.

“In their blood is [the] protection of your privacy,” Rebecca
Richards said Thursday, speaking at a privacy conference hosted by
the International Association of Privacy Professionals.

Richards has been the NSA’s privacy and civil liberties officer
for a little over a month. The creation of the position was
announced last year, as the Obama administration responded to a
series of controversial revelations about sweeping U.S. government
surveillance.

Given that Richards’ job was only created last year as part of
the Obama administration’s response to reporting on the information
leaked by NSA whistle-blower Edward Snowden it is hard to take
seriously Richards’ claim that NSA employees have privacy
protection “in their blood.”

Before starting her current job at the NSA Richards worked as

Senior Director of Privacy Compliance
at the Department of
Homeland Security, which oversees the
notoriously

privacy
conscious TSA.

As Reason’s J.D. Tuccille wrote about President Obama’s
weak and vague
 NSA reforms last January.

More from Reason.com on the NSA here

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Steven Greenhut: Abusive Coastal Agency Demands Even More Power

The title of the Coastal Society’s 1998
conference, which featured a speech by the father of the California
Coastal Commission, Peter Douglas, is relevant to a debate
that may soon come back to the Capitol, writes Steven Greenhut. At
the “Minding the Coast: It’s Everyone’s Business” event, Douglas
detailed his vision for coastal protection. The commission is loved
by environmentalists and loathed by many property owners as
Californians still wrestle with the same question: What does it
mean for everyone to mind the coast? Legislators will weigh in this
year if they revisit a bill that would give the commission vastly
expanded powers – namely, the right to impose fines without first
taking property owners to court.

View this article.

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Court: Bans on High-Capacity Magazines Are “Only the Most Minor Burden on the Second Amendment”

In 2013 the city of Sunnyvale, California enacted a ban on
so-called high-capacity gun magazines. According to the new law, it
was a criminal offense to possess any magazine holding more than 10
rounds, though exceptions to the ban were granted to certain
privileged gun owners, such as “any retired peace officer holding a
valid, current Carry Concealed Weapons (CCW) permit.”

Several individuals soon filed suit in federal court,
challenging the prohibition on Second Amendment grounds. Yesterday,
those plaintiffs suffered their first setback when the United
States District Court for the Northern District of California, San
Jose Division,
refused
to grant a preliminary injunction that would have
stopped the city from enforcing the ban while the litigation moved
forward.

Why? Because, the district court declared, “the right to possess
magazines having a capacity to accept more than ten rounds lies on
the periphery of the Second Amendment right, and proscribing such
magazines is, at bare minimum, substantially related to an
important government interest.”

At the Volokh Conspiracy, UCLA law professor Eugene Volokh
largely
concurs
with that judgment, arguing that because high-capacity
magazine bans do not impose a “substantial burden” on the Second
Amendment right to self-defense, they are likely to pass
constitutional muster. “Even if bans on magazines with more than 10
rounds are unwise,” Volokh writes, “not all unwise restrictions are
unconstitutional. That’s true for speech restrictions. It’s true
for abortion restrictions. And I think it’s true for gun
restrictions as well.”

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Phil Davis on the Money Talk Show

Watch Phil Davis of Phil’s Stock World on the Money Talk Show at Business News Network. 

Part 1: Market Outlook: Cashy and Cautious

Phil discusses why low volume market rallies are unconvincing, the “be the house and not the gambler” approach to trading options, and his thoughts on an upcoming market correction. 

 

Part 2: Option Plays for 2014

Specific ideas for 2014. 


    



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Friday A/V Club: Karl Hess Interviews Henry Wallace

Karl Hess in later years.Karl Hess had one of the most wide-ranging
ideological journeys of the libertarian movement. An anti-communist
writer and activist in the 1950s and early ’60s, he was a key
speechwriter in Barry Goldwater’s 1964 presidential campaign. But
in the late ’60s, he shocked a lot of his old friends by turning
against the Vietnam War and embracing
the New Left
, which he felt was more attached in practice to
his anti-state, pro-liberty ideals than a conservative movement
devoted to wars abroad and “law and order” at home. He wrote one of
the most famous libertarian essays of the period—”The Death of Politics,” published
in Playboy in 1969—and he kept moving leftward:
dabbling in anarcho-syndicalism, joining the Industrial Workers of
the World, serving as secretary of education in the shadow cabinet
of Benjamin Spock’s People’s
Party
. He kept his ties to the free-market libertarians,
though, and as his attitude towards much of the left started to
sour he became buddies with Charles Murray and was hired to edit
the Libertarian Party News—though I can attest, having
read his correspondence with my editor
at Liberty toward the end of Hess’ life, that he
never lost his interest in eliminating workplace hierarchies.

Henry Wallace in earlier years.If you’re a longtime libertarian, chances are good
that you know that story already. (Those of you who don’t can learn
more in Hess’ two memoirs, Dear
America
and
Mostly on the Edge
.) I gave you the quick version here
to set up this 1952 episode of the CBS show Longines
Chronoscope
, in which a rather young Hess—29 years old and
working for Newsweek—interviews Henry Wallace, who had
been vice president during FDR’s third term and the 1948
presidential candidate of the leftist Progressive Party. Hess is
joined by William Bradford Huie, editor of The American
Mercury
, which at that point was no longer the lively literary
journal run by H.L. Mencken but had not yet devolved into the
anti-Semitic rag it became in its final decades.

If you’re hoping for a big left/right confrontation between Hess
and Wallace, you won’t get it: Huie asks most of the questions, and
Wallace is in a contrite anti-Communist mode, worrying that Stalin
plans to subvert the country via inflation. (The only allusion to
their guest’s left-wing past comes after Wallace’s comment at 7:55
that Stalin wants “a fifth column in every western country.” Huie
asks: “Is that rather disillusioning to you, sir? You’ve been
friendly toward the Soviet Union at various periods in your life.”)
But it’s still a pretty amazing artifact.


Bonus video: A few months later, Hess and Huie interviewed
the Illinois congressman Harold H. Velde, chairman of the House
Committee on Un-American Activities. Hess asks more questions in
this episode, and Velde peppers his comments with phrases like
“pinkos, as they are properly known.”

Elsewhere in Reason: Read Reason‘s interview
with Hess here, and watch
him reminisce over a joint with Robert Anton Wilson
here
. I mention Wallace’s perhaps-surprising role as a trucking
deregulator in
this
 article.

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Bill Gross Responds: “Sick Of [El-Erian] Undermining” Him

Following last week’s discovery that Mohamed El-Erian was “sick of cleaning up [Bill Gross’s] shit” as tensions soared at PIMCO, the “bond king” has struck back blasting to Reuters that he’s “so sick of Mohamed trying to undermine me,” claiming El-Erian wrote the damaging WSJ article. Furthermore, the somewhat paranoid-sounding Gross indicated that he had been monitoring El-Erian’s phone calls but when questioned by Reuters for evidence of El-Erian’s undermining, Gross responded “you’re on his side. Great, he’s got you, too, wrapped around his charming right finger.” As one analyst noted, “I’ve never seen Bill and Pimco scrutinized like this before… a couple of high-profile stumbles and mediocre showings, coupled with some outflows clearly has some investors on edge.”

 

Via Reuters,

Gross told Reuters that he had “evidence” that El-Erian “wrote” a February 24 article in the Journal, which described the worsening relationship between the two men as Pimco’s performance deteriorated last year, including a showdown in which they squared off against each other in front of more than a dozen colleagues at the firm’s Newport Beach, California headquarters.

Gross, who oversaw more than $1.91 trillion in assets as of the end of last year and who is known on Wall Street as the ‘Bond King’, said in a phone call to Reuters last Friday: “I’m so sick of Mohamed trying to undermine me.”

When asked if Reuters could see the evidence about El-Erian and the allegation he was involved in the article, Gross said: “You’re on his side. Great, he’s got you, too, wrapped around his charming right finger.”

He said he knew that El-Erian, who had been widely seen as the heir apparent to Gross but is now due to leave in mid-March, had been in contact with Reuters as well as the Wall Street Journal.

Gross indicated he had been monitoring El-Erian’s phone calls.

The Wall Street Journal quickly denied Gross’ claims…

When asked about Gross’s claim that El-Erian “wrote” the article, a spokeswoman for Dow Jones, the publisher of The Wall Street Journal, said: “This is an astoundingly incorrect claim about a thoroughly reported article that was in the best tradition of The Wall Street Journal.”

As we noted previously, isn’t it interesting that all these tensions occur as the Fed starts to taper and bonds , according to many strategists, end a 30 year bull market…

The latest signs of a rift between Gross and El-Erian, who once praised each other fulsomely, come as Gross is grappling with clients who are also turning their backs on the very asset class that has made him famous.

That is happening partly because the Federal Reserve continues to reduce its controversial bond buying that has provided stimulus to the U.S. and world economies.

Pimco saw its assets under management shrink by $80 billion in 2013 due to outflows and negative returns, according to Morningstar.

I’ve never seen Bill and Pimco scrutinized like this before. This is the most attention I have seen on them,” said Eric Jacobson, Morningstar senior analyst who has covered Pimco for nearly two decades. “A couple of high-profile stumbles and mediocre showings, coupled with some outflows – and with no identified successor for life after Bill – clearly has some investors on edge.

Ugly…


    



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