Over the weekend the US Administration and the US Media, went into overdrive condemning Russia with the Secretary Of State John Kerry calling it an “incredible act of aggression” and stating “you just don’t in the 21st century behave in 19th century fashion by invading another”. Yet, let’s do a quick comparison.

RUSSIA:

• Entered into Ukraine to stabilize the country and protect ethnic Russian’s from fascist illegitimate government now in Kiev.Not a single shot fired. Zero casualties.
• Russian soldiers are met with excitement and flowers. Entire Army divisions and the Ukrainian navy defects to the Russian side.
• Millions of Ukrainians are thankful for Russia trying to stabilize the region.

USA:

• Enters Iraq under false pretenses. The US Government falsifies intelligence reports and the US media sells is to the American people like gospel.
• Causes approximately 500,000 deaths in Iraq as direct or indirect result of the war (2003-2011)
• Kills 4,486 U.S. soldiers in Iraq between 2003 and 2012. Tens of thousands are sent home wounded. 

So, let me ask you. Who is acting like a proverbial “Caveman” here. Oh yeah, I forgot, the US killed all of those Iraqis to bring piece, happiness, freedom and rainbows to the region.

LONDON (Reuters) – The rising threat of war between Ukraine and Russia sent investors scurrying for relative safety on Monday, pushing stocks down sharply – the Moscow market fell 11.5 percent – and lifting gold to a four-month high.

U.S. investors were set to add their weight to the move at the open, with stock index futures all down around 1 percent and benchmark U.S. Treasury yields down 5.5 basis points.

With Russian troops already on Ukrainian soil after an incursion into Crimea, comments over the weekend from President Vladimir Putin that he had the right to invade the rest of the country were treated as a declaration of war by Kiev.

Geopolitical ripples from those statements, which included condemnation from the Group of Seven major industrialized nations and the threat of sanctions, spread through markets, hitting Russian assets the hardest and forcing the Russian central bank to aggressively raise interest rates.

Russia’s stock market nosedived at the open and the ruble fell 2 percent to record lows against the dollar and the euro before recovering to trade up 1.4 percent after the central bank dramatically lifted its key lending rate by 1.5 percentage points to 7 percent at an unscheduled meeting.

The country’s sovereign dollar bonds were also hit, down more than 2 points, while the cost of buying 5-year swaps to insure against a Russian debt default jumped 33 basis points.

“Investors had underestimated the risks of an escalation in Ukraine, so the events over the weekend are a wake-up call for the market,” said David Thebault, head of quantitative sales trading at Global Equities in Paris.

The escalating tensions sent Ukraine’s hryvnia to a record low against the dollar and pushed the country’s dollar bonds down 6 points on Monday, in contrast to a jump in safe-haven German Bund futures, which rose 87 ticks.

No major regional stock bourse escaped the aggressive selling, with all down more than 2 percent and Germany’s DAX particularly hard hit, tumbling 3.1 percent and heading for its biggest daily fall in eight months.

That had followed overnight weakness in Asia, with MSCI’s broadest index of Asia-Pacific shares outside Japan down 0.9 percent and Japan’s Nikkei 225 skidding 1.3 percent.

“We can expect some very sharp moves in the ensuing couple of days as markets and world leaders look to establish just how much of a threat there is to not only to stability in the area but stability across Europe,” said James Hughes, chief market analyst at Alpari UK.

Among those leading regional stock fallers were the many companies, from banks to retailers, with heavy sales exposure to Russia and Ukraine.

Chief beneficiaries of the market-wide flight from risk were gold, German debt, the Japanese yen and other currencies perceived as safe havens in times of heightened volatility, while oil was supported by the demand outlook.

Concern about China’s economy also weighed on markets after a purchasing managers’ index showed China’s vast factory sector contracted again in February.

Spot gold hit a four-month intraday high of $1,350 an ounce and the dollar hit a near one-month low against the yen and approached Friday’s two-year low against the Swiss franc before recovering to trade slightly higher.

The euro, meanwhile, shed 0.3 percent against the dollar to $1.3763, slipping from Friday’s two-month high as the euro zone economy is seen as vulnerable because of its dependence on gas supplies from Russia, part of which go through Ukraine.

Worries that Putin could act to restrict those gas supplies if the situation escalates further, and the prospect of a typical run-up in demand should war break out, boosted crude prices across the board.

Brent crude, the European oil benchmark, rose as much as 3 percent to a two-month high of $112.07 per barrel, while U.S. crude futures hit a five-month high of $104.75.

“But… if it actually comes to war. U.S. crude could easily surpass $110 and a $120 target is not out of the question,” said Ben Le Brun, market analyst at OptionsXpress.

Ukraine said, however, that it was pumping Russian gas as normal.

On top of concerns about a military confrontation, it was not clear if Ukraine’s new interim government, formed about a week ago after pro-Russian former President Viktor Yanukovich was ousted, can secure funds to avoid default.

Kiev has said it needs $35 billion over two years to avoid default, and may need $4 billion immediately. But Ukrainian Finance Minister Oleksander Shlapak said on Saturday the country was unlikely to receive financial assistance from the International Monetary Fund before April.

Elsewhere, with the yield on 10-year U.S. debt off its one-month low of 2.592 percent, focus will be on the release of important economic data this week including payrolls numbers on Friday and manufacturing data later on Monday after mixed data from Asia and Europe.

A private survey of the latter in China found factory activity shrank again in February as output and new orders fell, reinforcing concerns about a slowdown in the world’s No. 2 economy.

That offset a more upbeat survey from the Chinese services sector and pushed copper down to a three-month low. China is the world’s top metals consumer and the market is already concerned about growing copper stockpiles in China.

In Europe, meanwhile, data from the euro zone showed output rose in all of the bloc’s four biggest economies for the first time in almost three years.

The United States of Hypocrisy Google