Russia has announced that it will share intelligence with Iraq concerning operations against the Islamic State in both Syria and Iraq. The move caught American officials off guard and represents a distinctive move by Russia to secure its interests in the Middle East in a much substantive way than in the past. The move also represents a growing alliance between Iran and Russia, an alliance that shunts American interests to the side. The US will have to counter this chess move, but it is unclear what alternatives are viable for American policy.
The financial markets have suffered recently as China began selling some of its $3 trillion foreign reserves in order to cover budget losses from its recent economic slowdown. Now Saudi Arabia has started to sell some of its foreign reserves to compensate for budget deficits associated with the decline in the price of petroleum. The worry is that the sale of these assets, many of which are US Treasury bonds, could have the effect of forcing interest rate changes that could cause other countries to suffer economic slowdowns as well. The consequences of globalization are that economic misery spreads very rapidly in this world.
I will be in Belgium until 6 October so I won’t be posting while I am away. Unless something really weird or significant happens. So let’s hope that I won’t be posting until the 6th. Keep smiling.
World Politics News 
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