Market frenzy: Portugal more reliable than Russia

   It is interesting to see in one and the same day Russia failing to sell its 9-year government bonds, while Portugal marking an enormous demand and record low interest rates. Russia is a country with a debt of less than 10% of GDP with balanced budget in most of previous years. At the same time Portugal is defaulted country with constant deficits and a debt of 130% of GDP. It had to be bailouted very soon.

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ECB outplays Harry Potter in magic

  After the surprisingly successful Greek bond sale now new data appeared on "increasing interest"  in... Spanish debt. But in Spain almost nothing has changed since the times the country bankrupted and had to use help from EU bailout funds. Yes this default was not official like with Greece. Instead a direct help for banks was given without formally passing through government. Anyway it was an external aid on non-market basis, i.e. it was de facto a partial default. And now - just like with Greece - an enormous interest in Spanish debt.

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Ukraine heads for a Hollywood peace path

   Few days ago in Geneva Russia and the West completed an agreement on Ukraine crisis. Now is clear this agreement means absolutely nothing. That logically leads to a conclusion that Great World powers have already divided Ukraine into zones of influence and all negotiations are only a theater before these decisions go real.
   The most important decision that could change the situation is de facto unrealizable. Russia and USA agreed to disarm all non-government militias and free the occupied government buildings. But only hours after the agreement both Kiev’s Maidan and Eastern Russian separatists refused to execute it.

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USA plans no balanced budget in next decade

   Looking at the proposed by Obama new budget draft, we can tell nothing else than “madness”. The government does not even think of balancing its spending. There is no year planned in next 10 years to have an income equal to expenses. The only difference between years is exactly how much will be the deficit. In “good” years it will be “only” $500 billion, while in “bad” years it will reach $800 billion. Simply said, USA will continue being in debt-spiral that can lead nowhere else than in a heavy default.

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Pulitzer for a “traitor”

   Washington Post and Guardian won the Pulitzer Prize for their articles based on documents leaked by the former government contractor Edward J. Snowden. At the same time Snowden himself is declared a “traitor” and is facing lifetime or even death penalty, if being captured by US forces. At current moment he is living as a political refugee in Moscow. Said in short – a Pulitzer inspirer is hiding from US repression in… Russia. What times we lived to see…
   Praising some media with the highest award and at the same time hunting for the main contributor for this award looks as a type of social schizophrenia. Obviously some parts of society have different values. The government thinks someone is bad for society, while the free media thinks he is good for society and encourages such a behavior.
   Who is right?

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Obama on the wave of glory of the inflation tax

   Some analysts have already started to praise the results of Obama budget policy that is making a decrease in the deficit. It looks as if USA finally has found the right way to avoid fiscal and debt crash. And in fact they are right.
   But from this point of view they were wrong that it generally existed any danger of default. In fact it never existed, when putting in calculation the right of USA to print a globally accepted currency. Because in fact this is the right reason of improving the budget situation. With printing press in FED, USA can always repay its debt as it is issued in dollars and USA can produce dollars.

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