Europe

Yesterday morning, when musing on the day's key event namely Yellen's congressional testimony, we dismissed the most recent bout of European bank euphoria which we said "will be brief if not validated by concrete actions, because while central banks have the luxury of jawboning, commercial banks are actually burning through funds - rapidly at that - and don't have the luxury of hoping for the best while doing nothing." This morning DB has wiped out all of yesterday's gain.

The United States has announced plans to double its military presence in Europe as part of a move to support NATO against increasing “Russian aggression”. The plans are part of the European Reassurance Initiative outlined in the 2017 defense budget, which has been sent to congress for approval. Theepochtimes.com reports: “We’re going to move to a so-called heel to toe basis, where we’re over there consistently on the ground exercising,” said Under Secretary of Defense Mike McCord in a Feb. 9 briefing, according to a transcript.

Earlier today, we reported that European officials are considering a two year Schengen suspension to help stem the inexorable flow of Mid-East migrants into Western Europe.

Last year’s optimism regarding the bloc’s ability to take on asylum seekers quickly faded as eurocrats suddenly realized just how daunting a task they’re facing. Even if the integration effort were going smoothly, the task would be well nigh impossible. Germany, for instance, took in some 1.1 million refugees in 2015 - the country only has 82 million people.

A European MP has announced that they have obtained documents that proves that Turkey aid and support terrorists groups such as ISIS in Syria.  In an interview with the Lobe Log news agency, European Parliament member Kati Piri says that she has evidence that Turkey purchases oil from ISIS, and that Turkish intelligence agencies have conspired to cause the “immigration tsunami” currently happening throughout Europe. Awdnews.com reports: Piri says that she hoped that the European Parliament will force Turkey to be held accountable for this.

"Putin Uses The Refugee Crisis To Weaken Merkel", by Judy Dempsey as originally published at Carnegie Europe,

Back in December 2015, when it became clear that refugees from the Middle East would continue to head toward Germany, Chancellor Angela Merkel reassured her conservative Christian Democratic Union party that everything was under control. All she needed, she told party members, was more time. Germany could manage the influx of over 1 million refugees and asylum seekers.