Russia

While the Pentagon may be already contemplating its next steps in the escalating conflict with Russia, which as the WSJ reported will likely involve supplying Ukraine with antitank missiles and other weaponry - a red line for the Kremlin not even the Obama administration dared to cross - there is minor matter of what to do with a suddenly furious Europe, which as we discussed  previously, has vowed it would retaliate promptly after Trump signed the anti-Russia legislation into law, due to allegations it was just a veiled attempt at favoritism for US-based energy companies.

When we reported yesterday about Putin's surprisingly harsh response to last week's House legislation to launch new sanctions against Russia, which also binds Trump from unilaterally removing sanctions without getting Congressional approval, we concluded that "now we await the US re-retaliation in what is once again the same tit-for-tat escalation that marked the latter years of the Obama regime, as the US Military Industrial Complex breathes out a sigh of relief that for all the posturing by Trump, things between Russia and the US are back on autopilot."

Washington Pushes Harder Against Russia

Paul Craig Roberts

Some historians believe that the cause of WW2 was UK prime minister Chamberlain’s appeasement of Hitler’s recovery of German territory given to other countries via the Versailles Treaty in contravention of US President Woodrow Wilson’s promise to Germany that there would be no reparations and no loss of territory if Germany agreed to an armistance ending WW1.

Authored by Paul Craig Roberts,

The Congress of the United States by almost unanimous votes in both House and Senate has made it clear that Congress would rather destroy the President of the United States and to increase the risk of nuclear war than to avoid conflict with Russia by normalizing relations.

Authored by James Rickards via The Daily Reckoning,

With the U.S. preparing to confront China and go to war with North Korea, Russia is an indispensable ally for the U.S.

There are huge implications on capital markets as these hegemonic powers continue to edge toward war.

Here’s an overview of some of the financial implications of improved relations with Russia…

1: The End of OPEC and the Rise of the Tripartite Alliance