The Cost of Intervention

Re-Blogged From Stratfor

What North Korea lacks in sophistication it makes up for in guile. Its answer to any attack would go beyond conventional means to include its experienced commando force, cyberwarfare capability and submarine force, at the very least. Though North Korea has chemical weapons, they are probably no more effective than its air force and surface navy. Still, there’s a psychological shock value attached to their use.

Pyongyang will do everything it can to impose a cost on any belligerent force. If the United States wishes to denuclearize North Korea, it will have to accept the consequences, as will South Korea and possibly even Japan. The United States would greatly prefer a diplomatic solution, but this has not worked well in the past. Even tougher sanctions imposed in March did little but harden Pyongyang’s resolve. And in avoiding a messy, if short-lived conflict, the United States and South Korea may have set themselves up for future angst when Pyongyang unveils a strategic nuclear deterrent.

Continue reading

Tesla Battery, Subsidy and Sustainability Fantasies

By Paul Driessen – Re-Blogged From http://www.WattsUpWithThat.com

More subsidies from exhausted California taxpayers cannot compensate for hard realities

The first justification was that internal combustion engines polluted too much. But emissions steadily declined, and today’s cars emit about 3% of what their predecessors did. Then it was oil imports: electric vehicles (EVs) would reduce foreign dependency and balance of trade deficits. Bountiful oil and natural gas supplies from America’s hydraulic fracturing revolution finally eliminated that as an argument.

Now the focus is on climate change. Every EV sale will help prevent assumed and asserted manmade temperature, climate and weather disasters, we’re told – even if their total sales represented less than 1% of all U.S. car and light truck sales in 2016 (Tesla sold 47,184 of the 17,557,955 vehicles sold nationwide last year), and plug-in EVs account for barely 0.15% of 1.4 billion vehicles on the road worldwide.

Continue reading

5 Reasons to Fear the Fall

By Michael Pento – Re-Blogged From http://www.PentoPort.com

This powerful and protracted bull market has made Cassandras look foolish for a long time. Those who went on record predicting that massive central bank manipulation of markets would not engender viable economic growth have been proven correct. However, these same individuals failed to fully anticipate the willingness of momentum-trading algorithms to take asset prices very far above the underlying level of economic growth.

Nevertheless, there are five reasons to believe that this fall will finally bring stock market valuations down to earth, and vindicate those who have displayed caution amidst all the frenzy.

Continue reading

China Builds Maritime Muscle

Re-Blogged From Stratfor

China recently reached a new milestone on its path toward military modernization. On June 28, the country launched the first Type 055 warship from the Jiangnan Shipyard on Shanghai’s Changxing Island. The vessel is China’s first heavy destroyer, and it is the largest surface combatant warship built by an Asian power since the end of World War II. With the Type 055, China shows how far it has come in its efforts to expand its maritime capabilities.

The Type 055 warship is a large and heavy vessel, with a full displacement — or weight — of more than 12,000 tons, a length of about 180 meters (590 feet) and a beam of roughly 20 meters. In fact, the U.S. military classifies the Type 055 as a cruiser, a class of warship larger than a destroyer. And despite its size, the new ship is sleek and modern in its design. For instance, it incorporates numerous features that reduce its visibility on radar, such as a fully enclosed foredeck and an integrated mast.

Continue reading

China and India are Edging Closer to a War in Asia

By Alex Lockie From Reuters – Re-Blogged From Yahoo!

Buried in the Himalayas in the Siliguri Corridor, also known as the Chicken’s neck, Chinese and Indian military forces sit on the respective sides of their vague borders and entrench themselves for what could become a shooting war between nuclear powers.

Both Beijing and New Delhi see the conflict as a shoving match for dominance in the Himalayas, an age-old struggle between the two states that most recently went hot in 1962, before either state had perfected nuclear bombs.

But now a Chinese construction project aiming to build a road that can support 40 ton vehicle traffic threatens a critical passage in India and risks alienating New Delhi from its ally, Bhutan.

Continue reading

If You’re Going to get Sick – Better do it Before Single Payer

By The Common Constituionalist – Re-Blogged From http://www.iPatriot.com

On his radio program  Monday evening, Mark Levin was discussing the ghastly way the Republican Party has treated us regarding the whole healthcare debacle. Mark said, “It’s amazing to me that a man can remain the Majority Leader, McConnell, when the man controlling the Senate, for all intents and purposes, is Chuck Schumer.”

Levin said, “we thought Republicans would repeal ObamaCare – we thought that would be a no-brainer.”

Continue reading

Are US Equities In A Bubble?

By Rudi Fronk and Jim Anthony –  Re-Blogged From http://www.Silver-Phoenix500.com

As we have noted, there is a very important difference between a bull market and a bubble. Valuations are certainly one means of distinguishing them. In retrospect, we can recognize previous historic bubbles such as 1929 and 2000. When basic ratios such as Price-to-Sales and Tobins’ Q have reached the levels that marked these bubbles, as they have, we can make a reasonable inference that another bubble has formed.

But there are other measures besides valuation. The most characteristic indicator of a bubble vs. a bull market is that bubbles ignore risk. Bubbles don’t discount risk, they don’t sniff out the next recession, they ignore or even fight the Fed, they don’t fall when earnings do and they do not herd into the long end of the Treasury curve for safety.

Continue reading