July 17, 2015

Chattanooga shooting, AGreekment, Puerto Rico pulls a Greece, capitalism in Iran and Merkel shows a soft side

“The World in a Nutshell”

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IN A NUTSHELL: MUST READ
Four Marines Killed in Tennessee Terror Attack America suffered tragedy yesterday as a gunman attacked a naval base in Chattanooga, Tennessee, killing four US marines. At least three other people were also injured including a police officer. The 24-year-old gunman, Muhamed Yussef AbdulAziz, was also killed during the shootout. The suspect was a naturalized US citizen, born in Kuwait, and as of writing appeared to be a lone shooter and not part of any broader terrorist organization. President Obama gave a statement, calling the attacks “heartbreaking.” The FBI said they were treating this as a case of “domestic terrorism.”

Europe Reaches AGreekment A flurry of positive news (for a change) came out of Europe yesterday. The European Central Bank (ECB) raised emergency financing for Greek banks, meaning that banks may open on Monday. ECB Chairman Mario Draghi said that he “operates under the assumption that Greece will remain part of the euro zone.” which was comforting after German Finance Minister Schauble raised the prospect of Grexit again. After weeks of uncertainty and political infighting, the EU was able to find the money to offer Greece a bridge loan to get through negotiations (better late than never). Crucially, Finland also approved negotiations on the bailout. The country with the highest number of saunas per capita had been a staunch critic of the deal.

Puerto Rico Pulls A Greece Not to be upstaged by its defaulting cousin across the pond, Puerto Rico (PR) missed a debt re-payment yesterday. The PR Public Finance Corp. needs to repay a $36.9 million bond on August 1 and if it fails to pay that then the US territory will be in default. A few weeks ago PR Governor Alejandro Padilla (not so fondly nicknamed Agapito) said the territory could not pay its debts sparking debate as to how/when the territory would default. PR’s economy has been declining for over a decade ever since the expiration of a tax loophole made it clear the island was not the logical place for a manufacturing hub. Complicating matters is the fact that PR, because of its territorial status, can’t file for Chapter 9 bankruptcy like a normal US municipality…Good Video: John Oliver on US “territories” vs. States

NUTS AND BOLTS: SHOULD READ
Capitalism Comes Out On Top In Iran Deal Sure Iran “won” the nuclear deal and “might still” get a bomb, setting off a nuclear arms race and a potential confrontation in the Middle East. But let’s not let any of that get in the way of making a little moolah shall we? Companies are lining up with cheque books ready to get in on the Iranian action. Oil companies are excited to get at the second largest natural gas and fourth largest oil reserves in the world. Even McDonalds will offer an Iranian franchise. Because nothing says “Death to America!” like a McRoyale with cheese… Good Read: Our “nutshell” on the Iran deal

Japan Gets Offensive Japan hasn’t really had much of a military presence since WWII. However, yesterday Japan’s lower house of parliament voted to allow Japanese troops to fight overseas. Most of the Japanese public opposes these new measures and are quite happy with the country’s pacifist stance. However, South Korea, a regional ally, has accused Japan of free-riding on other country’s military spending. China, which covets two Japanese controlled islands in the East China Sea, is not amused by any of this…

#Pnut4Prez: Jeb Bush Makes It Rain On The Trail Second quarter campaign financing numbers are in and Jeb Bush is solidly in the lead. Well ahead of his Republican rivals (without counting Trump’s $10 billion) and solidly ahead of Democratic front runner Hillary Clinton. Jeb raised a lot of his money through Super PAC’s, a dodgy campaign financing vehicle that allows billionaires to just pour as much money into the campaign as they want. Rick Santorum came in at the bottom of the heap, but it doesn’t look like he will quit anytime soon.

LOOSE NUTS:
Angela Merkel Crushes The Empathy Game German Chancellor Angela Merkel is on a roll this week winning hearts and minds everywhere. After punishing Greece with an excessive dose of harsh austerity and telling the Greeks you can’t sit at the Eurozone table she made a Palestinian girl cry on national television after telling her that there was nothing she could do to stop her deportation. The interaction (see video below) showed Merkel attempt to make an emotional connection by awkwardly patting the girl on the head and saying “you did it so well.” The host politely reminded Merkel that it wasn’t about “doing it well” but about being deported… Merkel didn’t seem to understand.

Weekend Reads

Get caught up on the Iran deal by reading our nutshell about it
The New York Times on ISIS’s US recruitment strategy: “ISIS and the Lonely Young American.”
Argentina, Iran (again), Hezbollah and the “Death of a Prosecutor.” Some great reporting by our friends at the New Yorker about a decades old terror plot in Buenos Aires.