North America

The global risk-off mood accelerated overnight on Trump "stability concerns", coupled with fallout from the Spain terrorist attack and lingering North Korea tensions, even if the VIX is off its latest highs, trading just above 15. Investors fled into German and U.S. Treasury bonds and bought gold for the third day in a row, as the appeal of such top-notch assets grew further due to a deadly attack that killed at least 13 people in Barcelona.

Authored by James Durso via TheHill.com,

The United States and the Republic of South Korea have, until now, had identical interests in the Korean peninsula: defending against a North Korean attack on the South, and keeping the North’s regime at bay until it collapsed from internal contradictions.

Authored by Charles Hugh Smith via OfTwoMinds blog,

Financialization incentivizes hot money capital flooding into speculative credit-asset bubbles.

When we speak of capital investments and capital flows, it's presumed all the capital being referenced is equal: a dollar is a dollar, wherever and whenever it's put to use.

Authored by George Friedman, Xander Snyder, and Ekaterina Zolotova via MauldinEconomics.com,

The US Congress has passed new sanctions targeting Russia’s energy companies. Among the other notable aspects of the sanctions is that they take some authority away from the US president (who used to be able to implement some measures but not others at his discretion) and give it to Congress.

Authored by Tyler Rogoway and Joseph Trevithick via TheDrive.com,

A very unique USAF surveillance aircraft has been flying highly defined circles over Seattle and its various suburbs for nine days now. Nobody at the DoD seems to know who the aircraft belongs to or what exactly it is doing flying so many missions over the Seattle area. But based on its visibly exotic configuration, and information collected by open source flight tracking websites, we can get a good idea of its capabilities and guess as to what it’s up to.