Greg Hunter – The U.S. is sending a dozen F-15’s to Turkey. The F-15 specialize in air-to-air combat. The Pentagon officially says the jets are to “ensure the safety” of NATO allies, but there is much speculation that the jets could also offer protection to the Kurds and the recently announced Special Ops Forces going to help “train” the Kurds. There is also the fear that these jets could meet Russian jet fighters in air-to-air combat either on purpose or accident. They have plenty of other U.S. Airforce firepower in Turkey such as the F-16, F-22 and B-1 bombers, to name a few.
Meanwhile, Russia is having meetings with many Middle East players including Saudi Arabia and Egypt. Speaking of Egypt, there is a lot of confusion over why that Russian passenger jet went down on the Sini Peninsula. The British say it was a bomb, and ISIS has taken credit for killing more than 220 people. Usually, when you kill more than 200 people, you are a little sheepish, but not ISIS. The group wants credit for the murders of Russians and have almost demanded they get the credit. What a sick group of people.
Greg Hunter – Financial writer and gold expert Bill Holter contends China has enormous debt problems, but a very good plan B. Holter explains, “China used fiat debt to build real infrastructure, and when the system blows up, the fiat debt blows away and they are left with infrastructure. Do they have 20% bad loans? They very well could and probably do. If it is true that they are going to have a debt blow up, don’t forget China has been importing big tonnage of gold for years now.
Over the last five years, they have imported 9,000 tons of gold. Their way out is the old way out. The old way out was to revalue gold higher. They could revalue gold and step up and say they will pay $50,000 or $100,000 per ounce for any and all ounces for sale. You can’t say there is not enough gold. What you can say is that it’s not priced correctly to support the system. If they have an implosion of debt which leaves their balance sheets impaired, the way to recapitalize the balance sheets is to revalue the price of gold higher. It creates capital, in other words.”
Joseph P Farrell – Putin, the UN, China, Germany, and Syria: a “coalition against Fascism” but what’s the message?
Chinese Military Personnel Expected to Arrive in Syria
Leith Fadel – The recent arrival of the Russian Marines and Air Force to the Syrian port-city of Tartous has generated a significant amount of interest around the world, as the possibility of Russia’s direct military intervention becomes the focal point of the war on ISIS (Islamic State of Iraq and Al-Sham).
Should the Russians begin military operations in Syria, what role will the U.S. led “Anti-ISIS Coalition” play in combating the terrorist group? Will they coordinate with one another? Will they avoid one another? Continue reading
Bix Weir – The war for our freedom continues to go on in the background as the Sheeple go about their everyday life totally blind to what’s about to happen. China announced a new oil contract that will be valued in Yuan and not the US Dollar…and another chemical plant blows sky high in China.
China’s new oil contract signals shift from Brent and US dollar
“New Chinese oil contract will challenge the dollar’s dominance as the primary currency for trading commodities.”
Zhejiang Explosion: Another Massive Blast at Chemical Plant Rocks China
“An explosion shook a chemical plant in the Chinese eastern province of Zhejiang, state media said on Monday, though there were no immediate reports of casualties in a country on edge after blasts killed more than 160 people last month.”
Charles Hugh Smith – Corruption isn’t just bribes and influence-peddling: it’s protecting the privileges of the few at the expense of the many. Rampant pollution is corruption writ large: the profits of the polluters are being protected at the expense of the millions being poisoned.
This is why capital and talent are fleeing China: systemic corruption has poisoned the nation and raised the cost of doing business. External costs such as environmental damage must be paid eventually, one way or the other.
Either the cost is paid in rising chronic illnesses, shorter lifespans and declining productivity, or profits and tax revenues must be siphoned off to clean up the damage and the sources of environmental degradation.
In large-scale industrial economies such as China and the U.S., that cost is measured not in billions of dollars but in hundreds of billions of dollars over a long period of time.
I have often noted that one key reason why the U.S. economy stagnated in the 1970s was the enormous external costs of runaway industrialization were finally paid in reduced profits and higher taxes.
China’s manufacturing base simply isn’t profitable enough to pay for the remedial clean-up and pollution controls needed to make China livable. That means labor and all the other sectors will have to pay the costs via higher taxes.
Pollution and environmental damage is driving away human capital, i.e. talent.This loss of talent is difficult to quantify, but it’s not just foreigners who have worked in China for years who are pulling up stakes to escape pollution and repression–talented young Chinese are finding jobs elsewhere for the same reasons.
The game-changer is automation, i.e. robots and software eating the world. To understand the impact on China, let’s start with unit labor costs, i.e. the cost of labor needed to produce each unit of output. Continue reading