Geopolitics and Finance Watch

Donetsk January 22, 2015 - Reteurs - Alexander Ermochenko

Europe #ECBQE

It might not be enough, it might not be the optimal path but it is a pragmatic one. It is in any case a major shift from the conservative ECB. As Gavin Davies from FT put it “Mr Draghi eventually delivers”.  http://ow.ly/HTHKD

In the US, QE was controversial and still is. Meanwhile, look at results. It worked. #QE #FED

QE withdraws duration from the market and transfers it onto the government’s books. That is why asset prices rise when QE occurs: asset prices rise when duration is in demand, and they fall when duration is in supply. When central banks extract duration from the market, it has to be replaced with something else. Stocks are long-duration assets. Real estate is a long-duration asset. Collectibles and precious metals are long-duration assets. Patents and other forms of intellectual property rights are long-duration assets.  David Kotok http://ow.ly/HTIR2

Greece #Syriza

Whereas Greeks are voting today and leftwing anti-austerity party is predicted to seize power, this is not necessary a factor of chaos in Europe. George Sathakis, seen as potential minister of finance of a government led by Aléxis Tsípras, declared to the French newspaper Libération in December that Greece would stay in the Eurozone.  Mario Draghi’s last move is probably an additional incentive to stay and benefit from new investment capacities. http://ow.ly/HTL5g    

Russia Ukraine #UkraineCrisis

Fighting has escalated in eastern Ukraine in recent days, and the Russian president, Vladimir Putin, has blamed Kiev. The rebels have ruled out more peace talks. Western powers and Kiev blame Russia and the rebels for the fresh fighting. http://ow.ly/HTN66

Iran #IranTalks #Kerry #Zarif

U.S. Secretary of State John Kerry and Iranian Foreign Minister Mohammad Jawad Zarif met on Thursday in Davos.  The two leaders had met as recently as last week, both in Geneva and in Paris. Meanwhile, Zarif, speaking on a panel at the World Economic Forum in Davos, warned that more sanctions by the U.S. Congress would kill the negotiating process between Iran and major powers on its nuclear program. http://ow.ly/HTNXf

ISIS #Daesh #isis

Recent events in Paris a few weeks ago or today with the brutal execution of a Japanese hostage are underlying the urgent need to understand the organization and its process of indoctrination.

A major problem that muddles understanding of Isis’s appeal is that politicians tend to deliberately misrepresent the role of ideology to undermine the group’s propaganda, while objective observers often have no access to Isis associates beyond social media. Both the commander of the American special operations forces in the Middle East, Major General Michael Nagata, and the general in charge of leading the international coalition against Isis, John Allen, have emphasised that the ideology of Isis is insufficiently understood and that ideological delegitimisation is crucial in the effort to defeat it. http://ow.ly/HTPSZ