Lightning-Like Transformation

“Suddenly, the old cold-war divide between East and West has burst onto the scene, with new fault lines appearing very near where the old ones were before.  And now, with equal speed, emerging market countries are backing off from unbridled support of Western democratic principles, many shifting back into a neutral zone (gray areas.)  Like lightning, the world has been transformed.  For investors, the biggest and most immediate impact will come from flight capital — massive amounts of money seeking what’s perceived to be the most stable regions, the safest companies and the countries least threatened by their own desperate governments.”

http://www.moneyandmarkets.com/lightning-like-transformation-61414

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Russia moves to make failure to declare dual citizenship a crime

“Parliament approved legislation on Tuesday requiring Russians to declare dual citizenship or face criminal prosecution.  The bill will impose a fine of up to 200,000 rubles ($5,800) or 400 hours of community service on Russians who have citizenship in another country and fail to tell the authorities.  Critics said the law would place people with two passports under suspicion and expressed fear its aim was to whip up nationalist fervor by hinting dissenters are in the service of foreign governments.  The law includes an exemption for Russians with dual citizenship who live abroad and for residents of Crimea, where Russia is busily issuing passports.”

http://www.reuters.com/article/2014/05/20/us-russia-bill-dualcitizens-idUSBREA4J0MJ20140520

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The Birth of a New Bull Market

“Underneath the headlines lies an irreparable situation with the PGM (Platinum Group Metals) market, one that will last at least several years and probably more like a decade. This market is teetering on the edge of a supply crunch, one more perilous than many investors realize. As the issues outlined below play out, prices will be forced higher—which signals that we should diversify into the ‘other’ precious metals now.  The basic problem is that platinum and palladium supply is in a structural deficit. It won’t be resolved when the strikes end or Russia simmers down. Here are six reasons why.”

http://www.caseyresearch.com/cdd/the-birth-of-a-new-bull-market

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The biggest factor in the platinum and palladium markets

“The chief reasons platinum and palladium are in a structural supply deficit are:  A: As I mentioned last week, the ore grade of the platinum group metals, that is the amount of the metals found in ore, is declining rapidly, with a plunge of more than 50 percent in ore grades in Russia and South Africa combined since 1998.  B. It takes as long as 10 years to open a new mine. C. Inventories are already being squeezed, with platinum demand expected to exceed available supplies this year by 705,000 ounces, while palladium demand is expected to exceed supplies by a huge 959,000 ounces this year, more than double the official 455,000 ounce deficit in 2013.”

http://www.moneyandmarkets.com/the-biggest-factor-in-the-platinum-and-palladium-markets-61227

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In Syria, US sides with local jihadists to defeat global ones

“The Islamic State of Iraq and al-Sham (ISIS) is the victim of a US-Saudi decision to get rid of the ISIS burden and rehabilitate the Islamic Front as a final substitute for the Free Syrian Army (FSA).  The US-Saudi plan aimed at replacing the FSA with the Islamic Front started a few weeks ago with attempts by US Ambassador Robert Ford in Antakya, through meetings with Ahrar al-Sham, Suqour al-Sham and Liwa’ al-Tawhid Brigades, and the most prominent leaders of the Islamic Front, to persuade them to return to the FSA General Staff, whose headquarters and weapons stores near Bab al-Hawa they seized, and to join the political process in Geneva.”

http://www.al-monitor.com/pulse/security/2014/01/us-fight-jihadists-syria-isis-islamic-front.html

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U.S. would welcome Modi as India leader despite past visa ban

“Modi was shunned by Western nations for years after the bloodshed in Gujarat, where he has been chief minister since 2001. He was denied a U.S. visa in 2005 under the terms of a 1998 U.S. law which bars entry to foreigners who have committed ‘particularly severe violations of religious freedom.’  Modi’s rise on the national stage, however, and the importance of relations with India, which the United States sees as a key counterbalance to China in Asia, have forced a rethink.  The State Department described the Indian elections as ‘an inspiring example of the power of the democratic process in action’ and stressed their peaceful nature – in spite of the killing of 41 Muslims in the state of Assam.”

 

http://www.reuters.com/article/2014/05/12/us-india-election-usa-idUSBREA4B0Y120140512

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Moscow to suspend American GPS sites on Russian territory from June

“Russia is going to suspend the operation of all American GPS sites on its territory, starting from June 1, said Russia’s deputy PM, Dmitry Rogozin, who is in charge of space and defense industries.  ‘Starting June 1, we will halt the work of those stations on Russian territory,’ Rogozin said.  Rogozin pointed out that American GPS ground stations are located in Russia under an agreement that dates back to 1993 and 2001. ‘Under this agreement there are 11 GPS stations on the territories of 10 [Russian federal] subjects,’ he said.  If negotiations turn out to be fruitless, operation of the 11 American GPS stations in Russia will ‘be permanently terminated’ from September 1, he warned.”

http://rt.com/news/158680-russia-usa-rocket-gps/

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Elon Musk Wins Suit Against Boeing Venture, On Basis Of Russia Sanctions

“A federal claims judge granted late Wednesday an injunction sought by SpaceX’s Elon Musk that prohibits the Air Force from granting a contract to an American group planning on purchasing Russian rockets.  In his suit, Musk contended that the government’s contract to a joint Boeing-Lockheed venture was not competitive, and that the venture’s plan to purchase Russian rockets went against the spirit of new U.S. sanctions against that country for its incursion into Ukraine.”

http://www.businessinsider.com.au/elon-musk-gets-a-win-against-russian-rocket-companies-2014-5

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Russia to ban US from using Space Station over Ukraine sanctions

“Russia is to deny the US future use of the International Space Station beyond 2020 and will also bar its rocket engines from launching US military satellites as it hits back at American sanctions imposed over Ukraine crisis.  Russia’s deputy Prime Minister Dmitry Rogozin announced a series of punitive measures on Tuesday against the US in response to sanctions imposed after Russia annexed Crimea.  The Space Station is manned by both American and Russian crew, but the only way to reach it is by using Russia’s Soyuz spacecraft.  Mr Rogozin said US plans to deny export licences for some high-technology items were a blow to Russian industry.”

http://www.telegraph.co.uk/news/worldnews/europe/russia/10828964/Russia-to-ban-US-from-using-Space-Station-over-Ukraine-sanctions.html

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New Drums of War

“The story begins 25 years ago, in 1989.  That was the pivotal year for the most dramatic peaceful transformation of modern history.   The transition to market-based economies created massive opportunities for investors. We saw a huge increase in cross-border trade and foreign direct investment. Almost simultaneously, the emergence of the digital revolution brought a decrease in international transaction costs. The Asian tigers and the BRIC countries — Brazil, Russia, India, and China — grew exponentially.  In this environment, the mere thought of regional conflict seemed absurd. And anyone talking about global conflict would inevitably be invited to check in to the nearest insane asylum.”

http://www.moneyandmarkets.com/new-drums-of-war-61239

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