Russian Invasion Of Ukraine Coming To A Head?

Events of the past 24 hours suggest Putin is either about to back out of Ukraine or spark a war with NATO...

The Ukrainian President warned yesterday of intelligence that suggests the Russians are about to blow up the nuclear plant in Zaporizhzhia.

That prompted an immediate bipartisan effort in the US Congress to send Putin/Russia a clear statement that using a tactical nuclear weapon, or blowing up a nuclear powerplant, in Ukraine would cause harm to NATO countries, especially Poland, in the form of radiation; and that would trigger a NATO response under Article 5 of the treaty. 

Meanwhile, Prigozhin, oligarch and owner of the brutal Wagner mercenary group, suddenly reappears with a 30 minute monologue presenting Putin's assault on Ukraine as effectively a coup by local Russian military/authorities and oligarchs who've been plundering Eastern Ukraine since 2014 and triggered the 'special military operation' as a cover for further personal gain. That would certainly set up a basis for he and Putin to back Russia out of Ukraine and pin the whole disaster on those 'culprits'...

Worryingly, this is far worse than the Cuban Missile Crisis, since that stand-off involved ships with warheads nearing a port, while this involves some random Russian soldier with a hand on a detonator...

How this ends depends on who's really in charge and how insane they are.

Not encouraging, based on what we've seen the Russians do since February 2022! 

Financial Crisis: Death By A Thousand Cuts

Speaking 10 years after the Global Financial Crisis of 2008, Hank Paulson worried that, while banks were not over-leveraged, governments had no room to stimulate growth because they were already spending and borrowing record at record rates and interest rates couldn't go any lower. Another 5 years on, and the era of cheap money is over, inflation has rocketed and suddenly there's a crisis of confidence in banks, not governments. What the hell happened? Well, it's the same old problem: greed and stupidity are winning, but this time it's everywhere, all at once. 

The result is a broader crisis in confidence - or the lack of it. No matter where investors turn unexpected holes are appearing. A string of crypto collapses culminating in the discovery of a vast fraud in FTX and the ensuing crypto-contagion that bled into the banking system via Silvergate; the SEC finally calling time on numerous unregistered crypto-securities programmes, again stressing real world investors and funding providers; the Truss-Kwarteng 'mini-budget' producing unaffordable mortgages and declining property prices amid flat-lining business investment and other trade problems in Brexit Britain, now the basket-case of the G7; Russia's invasion of Ukraine driving energy price explosion and rampant inflation, to which central banks have responded with rapid interest rate rises that in turn cut the market value of long term bonds held by banks with needy depositors, like SVB, First Republic and other lesser US banks that Trump exempted from proper scrutiny. And then there's the perennial doom-spiral that is Credit Suisse. 

Where will it end?

Who knows. Buckle up and try to enjoy the ride.