Europe

The U.S. military are going to deploy thousands of troops to the Russian border in an effort to protect NATO’s eastern borders from “aggressive Russia”. Around 4,500 soldiers armed with 250 tanks, Bradley Fighting Vehicles, Paladin self-propelled howitzers, and over 1,700 vehicles will station themselves at the border in the biggest deployment of its kind since the end of the Cold War. Vice News reports: They will conduct military exercises across Estonia, Latvia, Lithuania, Poland, Romania, Bulgaria, and Hungary, according to a statement from US European Command.

Submitted by Pater Tenebrarum via Acting-Man.com,

Reader Questions on Negative Interest Rates

Our reader L from Mumbai has mailed us a number of questions about the negative interest rate regime and its possible consequences. Since these questions are probably of general interest, we have decided to reply to them in this post.

The NIRP club – negative central bank deposit rates – click to enlarge.

We are one step closer to another full-blown return of the cold war.

Yesterday, during a briefing in Latvia's capital Riga, NATO Gen. Philip Breedlove said that NATO and the United States are switching their defense doctrine from assurance to deterrence in Eastern Europe in response to a “resurgent and aggressive Russia."

The comments by Breedlove come a day after the Pentagon said it would begin continuous rotations of an additional armored brigade of about 4,200 troops in Eastern Europe beginning in early 2017.

Via Mint's Bill Blain's Morning Porridge,

”A common mistake when trying to design something completely fool-proof is to underestimate the ingenuity of complete fools..” 

Russia has criticised US plans to position troops, tanks and other armored vehicles full time along NATO’s eastern borders, and said that Moscow is preparing a “completely asymmetrical” response to the deployments. Alexandr Grushko, Russia’s Ambassador to NATO said on Thursday that Moscow would not act like a “passive observer” but would rather undertake all those military measures needed to counter the “totally unjustified increased military presence.” Press TV reports: “Of course, our response will be completely asymmetrical.