Fundamentals: The market rallied yesterday on hope that the US debt ceiling will be raised. The source of hope was a plan put forth by the so-called Gang of Six. This plan is smoke and mirrors. It doesn't specify cuts to the government's budget, but sets up committees to some day make these cuts. Thursday the EU meets to solve Greece's debt problems. Since America's debt problems are being solved with smoke and mirrors, Europe needs a genuine solution.
If every other advanced country on Earth cuts its deficit, then America can be the one lone hold out and keep spending like a drunken sailor. America is in effect taxing the rest of the world. This has been going on for decades, so it's not that big of a stretch. But the superpower needs to win its wars for the tax to stick.
Long War: China is once again experiencing jihadist violence from its Uighur minority. Russia says it foiled a huge Islamic terror attempt in Moscow. Both China and Russia say that their home grown Islamic insurgencies have connections to Al-Qaeda. China shares a border with Afghanistan and Pakistan. Probably because of all this, China is backing off on its aggression against its Asian neighbors over mineral rights to the South China Sea.
The CIA has hacked into the Taliban's mobile network and web sites. It then told the world (pretending it was the Taliban) that Mullah Omar was dead. Now Mullah Omar has to make a public statement to prove he is not dead. This will allow the CIA to trace his courier network. This is how OBL was killed. Probably Mullah Omar will not make a statement. But then he grows more isolated.
Wednesday, July 20, 2011
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