United States

It all started early last night when the front month oil contract dipped below $28 giving a taste of what was to come. It was all downhill from there.

First Chinese stocks ended the recent ramp higher, with the Shanghai Composite closing down 1% back under 3000, then Japan's rout accelerated with both the Nikkei (-3.7%) and the Topix Index sinking into bear markets, both falling more than 20% from their 2015 highs.

The Afghan military sustained twice as many losses in the last year as U.S. forces killed in the entire 13 years of war in Afghanistan. And the pace of casualties is escalating, suggesting that the Taliban is stronger than the Pentagon and mainstream media have ever let on—in fact, the country is a house of cards experts say is destined to fall.

Submitted by Paul Craig Roberts,

If ever there was any doubts about the narrative of freedom-seeking China capital outflows driving the irrationally exuberant prices of homes in some of the world's largest cities to record highs, the following two charts will extinguish them entirely.

Bret Stephens makes a predictably unpersuasive case that the U.S. should continue to support the Saudis:

All this means that the right U.S. policy toward the Saudis is to hold them close and demonstrate serious support, lest they be tempted to continue freelancing their foreign policy in ways we might not like. It won’t happen in this administration, but a serious commitment to overthrow the Assad regime would be the place to start.