Armenian President Serzh Sargsyan participated yesterday Dzidernagapert (Yerevan) ceremonies of the 20th anniversary of the founding of the Vazgen Sargsyan Military Institute. A ceremony during which the cadets were received who had completed their training in 2014. Serzh Sargsyan congratulated the young officers of the Armenian army trained Vazgen Sargsyan Military Institute. During his speech, the Armenian president said further “tilting here to Dzidernagapert at the memorial of the eternal memory of our innocent victims of genocide (…) we say it is over time or aggression Armenian people could go unpunished. In our attackers we say, be careful here is Armenian land where you are going to die! . “Armenian President asked the military to take action to bring peace to the country.” Homeland needs a lot of you, “said Sarkisian.
Vancouver, finally the signe of hope the Armenian St. Vartan & St. Gregory churches joint picnic!
The Ratings Game: Rating agencies as weapons of economic warfare
by James Corbett
corbettreport.com
July 24, 2014
If it is true that we are entering an era of “new cold war” between the NATO powers and their BRICS-affiliated resistance bloc counterparts – and it is true according to all the usual globalist think tanks and media mouthpieces – then this war will not be fought with armies on battlefields but with corporations and pipelines and contracts. And if economic warfare is the new normal for the 21st century, then Russia and China have just revealed one of their key weapons in this fight. It is neither a missile nor a tank, not a stealth fighter nor an electromagnetic weapon. No, it’s something altogether more fearsome: a credit rating agency.
The announcement was made early this month by Russian Finance Minister Anton Siluanov. “In the beginning, the agency will assess Russian-Chinese investment projects with a view to attracting of [investors from] a number of Asian countries,” the minister said on a recent trip to Beijing. “Gradually, based on the progress and authority of such an agency, we believe it will rise to a level where its opinions will attract other countries.”
In the modern age of economic warfare, that’s the equivalent of a shot across the bow. But in order to understand the importance of this announcement and the potential good that it can do in bringing competition to a market dominated by three US-based firms, it’s helpful to re-examine what credit ratings agencies are and what they do, as well as how they have functioned in the past as tools of geopolitical leverage for Washington over its political rivals.
Ratings agencies assign credit risk ratings to large scale borrowers, whether corporate or governmental, from AAA prime rating status all the way down through “D” for “in default.” Anything below BBB- is considered junk bond status and governments are especially keen to avoid being assigned such a rating to stave off a stampede of sellers in their bond market and rocketing interest rates on their sovereign debt.
Although the agencies like to give the air of mathematical or statistical certainty in their assessments, the ratings are actually highly subjective, based on each agencies’ judgement of information about debtors’ risk of default. Neither do ratings represent any particular probability of default. Instead, the letter grading scale represents relative risk of default and are generally characterized in lengthy descriptive phrases. When the subjectivity of these ratings are combined with the fact that the credit ratings market is overwhelmingly dominated by just three agencies-Moody’s, Standard & Poor’s and Fitch Ratings-all of which are American agencies which derive much of their income from the very Wall Street banks they claim to be impartially evaluating, the potential for abuse is rampant. It should be no surprise, then, that the historical record is rife with examples of the “Big Three” agencies’ corruption.
For years critics have made the argument that the entire 2008 financial crisis would never have happened without the active collusion of the ratings agencies in giving their AAA prime rating to the toxic mortgage-backed securities that were at the heart of the subprime meltdown. After all, as Matt Taibbi pointed out in an article on the subject last year:
“A triple-A rating is to the financial world what the USDA seal of approval is to a meat-eater, or virginity is to a Catholic. It’s supposed to be sacrosanct, inviolable: According to Moody’s own reports, AAA investments ‘should survive the equivalent of the U.S. Great Depression.’”
In that article, Taibbi published the details of a trove of internal emails from within the Big Three agencies themselves, uncovered as part of an investigation brought about by a pair of lawsuits. The emails confirmed the suspicions of the agencies’ critics in the starkest possible terms. One senior S&P analyst confides that “I had difficulties explaining ‘HOW’ we got to these numbers since there is no science behind it,” while a senior S&P executive calls the agencies’ dealings a “f***ing scam” and another warns ominously that he hopes “we are all wealthy and retired by the time this house of card[s] falters.”
The documents detail how the banks used regulatory loopholes to create entities called Structured Investment Vehicles (SIVs) which could be used to keep mortgage backed securities and other risky investments off the books of the main bank. This allowed them to raise money on the commercial paper market at low interest rates and earn high interest rates by buying toxic subprime mortgage securities. The ratings agencies gave their double stamp of approval; first their AAA prime status to the toxic subprime sludge that was being bundled up in the mortgage-backed securities that the SIVs were buying, and then to the SIVs themselves.
But, unfathomably, the Big Three ratings agencies-the very institutions that are supposed to provide a reliable, unbiased, independent, disinterested, third-party assessment of the credit risk of any given asset, corporation or government-are compensated directly by the issuer of the product that they are rating. The SIVs were paying for the prime ratings they were receiving, and pay they did. Ratings agencies’ fees doubled from 2002 to 2007 (from $3 billion to $7 billion) on the back of a quadrupling of fees related to mortgage-backed securities.
The internal documents show that the agencies made the deliberate choice to sign off on deals they didn’t understand without any scientific or historical backing for their ratings, because, as one Moody’s executive wrote in 2004, “To put it bluntly, the issuer could take its business elsewhere unless the rating agency provides a higher rating.” The Big Three were not without their conscience-racked would-be whistleblowers and frustrated analysts, but in the end the execs won out and the rest, as they say, is history.
If only the agencies were simply the tool of mammoth financial conspiracy. Alas, they are also the tool of the US State Department and an instrument of geopolitical warfare. If there is a single issue that unites nations around the globe these days (except for Wall Steet…er, Washington), it’s probably this one. As EconoMonitor explains:
“Russia’s president Vladimir Putin and Germany’s finance minister Wolfgang Schäuble speak of ‘abuses’ and ‘abusive behaviour,’ Turkey’s premier Recep Tayyip Erdoğan makes claims of ‘unfair’ decisions, and José Manuel Barroso, president of the European commission, directly accuses the agencies of a ‘bias […] when it comes to the evaluation of specific issues of Europe.’”
Indeed, Europeans know whereof they speak in this case. The Big Three waited for Greece’s sovereign debt refinancing package to go through to downgrade Spanish bonds, and when the EU brokered a deal to aid Spain they downgraded Portugal. The EU came to shore up Portugal’s mess and the agencies circled back to downgrade Greece, and on it went, round after round. Not that the countries involved didn’t deserve their downgrades, but that’s precisely the point; they deserved their downgrades long before that point. But the agencies had somehow “missed” that fact until the very time that the EU was running around with their bailout manna from heaven trying to smooth things over. The ratings agencies were pouring gasoline on the EU debt crisis, and Europe recognized that fact.
UCRG will have an uphill battle in establishing itself as a reliable and non-politically motivated agency given the circumstances of its founding. It would be hard for outsiders to see this move as anything other than part of a political tit-for-tat over recent skirmishes between Russia and the US, and for the agency to be taken seriously at all it will have to build up trust with international partners. But it does have potential allies in places like Europe, still wary of the Big Three after the last round of Eurozone crisis. China made inroads in Europe last year when its Dagong Europe Credit Rating won approval from the European Securities and Market Authority to operate as a rating agency in Europe. The new agency is given further gravitas by the fact that its CEO, Richard Hainsworth, is an influential UK financier with long experience in the Russian ratings market, and someone who helped to forge the ties between Dagong and Egan-Jones.
At this point, it is far from certain that UCRG won’t just be another political tool of its host countries to engage in economic warfare with the US and its “Big Three.” But even if that’s all that the new agency amounts to, it will still be valuable for that. Simply giving the global market a viable alternative to the Wall Street fat cats’ rating agency of choice will help to balance the equation and help third parties evaluate risk by comparing ratings and subtracting biases. It still remains to be seen how far this new venture will go, and it will still take years before it will be able to establish itself on the global market, but the added competition can’t but be a good thing for a credit rating industry that is badly in need of a shake up.
China has been aware of the political nature of these ratings shenanigans for years and have taken their own steps to counteract them. In 1994 they set up their own credit rating agency, Dagong Global Credit Rating, which rates short-term and long-term debt, including sovereign bonds. The agency has been given short shrift internationally, but did make headlines around the world for its decision to downgrade American debt twice in 2011 after Congress raised the debt ceiling by $2.1 trillion.
For Russia, the final straw appears to have come in April (in the midst of the Kremlin’s dual with the White House in the Ukrainian proxy region) when S&P downgraded the country’s sovereign debt from BBB to BBB-, just one notch above junk status. This was, in fact, the very point at which Russia went full nuclear in its own financial war with Wall Street. Directly after the announcement, Russian presidential advisor Sergei Glazyev announced a new plan for economic disengagement from the US and the dollar, including the possibility of withdrawing all dollar and Euro-denominated assets from NATO countries to neutral ones, reducing Central Bank holdings of dollar assets, selling sovereign bonds of NATO member countries and any country that supports sanctions on Russia, and using national currencies rather than the dollar in bilateral trade. Then, days later, the Russian government made it even more explicit, announcing that they would formally push for their BRICS partners and Eurasian Union counterparts to establish their own rating agency to avoid Washington’s political influence over international debt markets.
This is the context in which we have to understand this latest proposal to found a joint Russian-Chinese agency. The proposed agency, the Universal Credit Rating Group, would combine the already-existing Russian RusRating agency, China’s Dagong Global Credit Rating Co, and the American non-Big Three Egan-Jones Rating.
There is 31 years old fell 5 fighters Armenians Lisbon in an attack against the Turkish Embassy
There are just 31 years old, July 27, 1983, a commando of 5 Armenians claiming ARA (Armenian Revolutionary Army) died in an attack against the Turkish Embassy in Lisbon. These five members of the Armenian commando were named Vatche Daghlian, Sarkis Aprahamian, Ara Kerdjelian, Setrak Adjemian and Simon Yahneian.
Attempted hostage of Armenian commando ended tragically with the death of five young revolutionaries who demanded Ankara recognition and repair of the Armenian genocide of 1915. Attempt hostage-in which had also found death the wife of a Turkish administrative attaché and a policeman-Portuguese had failed and ended in tragedy. 5 Armenians unto death.
31 years after their heroic death, “5 Lisbon” as they are now called have not seen their hero status in Armenia. Historian Simon Safarian recalled on July 25 in Yerevan. At the same press conference, Samvel Tatevossian, director and veteran of the war of liberation of Karabakh recalled that those who had been appointed by the international media as “terrorists” were actually heroes who gave their lives on altar dedicated to the fight for truth and justice of the Armenian people. Remains to Armenia to recognize its fallen heroes in Lisbon children there more than three decades on the road to freedom and dignity of the Armenian people.
Krikor Amirzayan
Egypt warns Turkey of worsening ties
CAIRO – Associated Press
Egypt’s Foreign Ministry on July 26 condemned Turkey’s prime minister for calling Egyptian President Abdel-Fattah al-Sisi a “tyrant,” warning already sour relations between the two countries could worsen.
In a strongly-worded statement, the ministry said it summoned the Turkish charge d’ affaires, the highest-ranking Turkish official in the country, over the comments. It said Turkish Prime Minister Recep Tayyip Erdoğan is driven by “narrow ideological interests,” referencing Turkey’s support to the Muslim Brotherhood group, branded as a terrorist organization in Egypt.
“The continuation of the insults against Egypt and its elected leadership will undoubtedly lead to more measures from Egypt, leading to limited progress of bilateral relations,” the statement said.
Relations between Egypt and Turkey soured after al-Sisi led the last year’s ouster of Islamist President Mohammed Mursi, a Brotherhood leader. Egypt expelled Turkish ambassador in Cairo and withdrew its ambassador in Turkey after it called for Mursi release from prison.
July/26/2014
Armenian cheese and dairy food are like ‘‘white gold’’
The milk production should be not only homemade but also should be produced by large companies as far as the Armenian cattle-breeding has all the grounds for progress, told today the director of sociological center “Sociometer” Aharon Adibekyan.
According to him the cheese and the dairy food may become a “white gold” for Armenia because there are unique geographical conditions for development of that field. Armenia has all the possibilities to produce Swiss “Emental” cheese the kilogram of which costs 50-60 dollars. Besides that there are some types of Armenian cheese that are very famous in Europe, like “Lori”, “Chanakh”, “Chechil”, Adibekyan believes.
“Official approach is needed in this sphere. The state should promote the cheese production by providing them cheaper credits in order to export our cheese,” Adibekyan said and added that the companies who export their goods should have corresponding certificates which will cost them 100 to 150 thousand dollars.
“The state support here is very important. The taste of Armenian cheese does not yield to any other country’s cheese. However, we are not presenting our production to the world. It’s high time to turn from importing country to exporting one,” he said.
Armenian Writing Added to Street Signs in Van
VAN, Turkey—Armenian inscriptions have been added to signboards on the streets of the city of Artamed (Edremit) in the Van Province in Turkey, EremeniHaber.com reports.
The initiative aims to stop hostile perceptions of Armenians and create sympathy towards them, said Mayor of Artamed, Sevil Rojbin Cetin, member of the Party of Democratic Regions.
“The Kurdish people have historical-cultural similarities with the Armenian people. Van and Artamed were densely populated by Armenians before 1915. The Kurds and Armenians have lived side by side in Van for centuries. Therefore, we’ll not allow the state to erase Armenian history and destroy the Armenian culture. We have made this step as a sign of respect for Armenians,” the Mayor told Haber 7 news.
Couples Married in Mass Wedding Demand Release of Levon Hayrapetian
STEPANAKERT—674 couples who were married in a mass wedding in Artsakh, sponsored by businessman and philanthropist Levon Hayrapetian, have appealed to Russian authorities, demanding the release of Hayrapetian, who was arrested on July 15 in Moscow. The couples say they hope that Russian law enforcement will take an objective approach to the case, in which case they are confident that Hayrapetian will be proven innocent.
“We, the 674 couples of a mass wedding organized by Levon Hayrapetyan in 2008, consider invaluable the great benefactor’s contribution to the development of Artsakh, displayed by both sponsoring us and our children, and many other major projects,” The statement from the group read.
“Thanks to Hayrapetian’s sponsorship of the mass wedding, hundreds of families were formed in Artsakh, and in the six years’ time, around 1,200 children have been born. Being well aware of Levon Hayrapetian’s high human values, we are convinced that the accusations against him are groundless. We hope that the Russian law enforcement bodies will display an objective approach, in the result of which the great benefactor’s innocence will be proven. Considering the investigation process and revelation of truth as a matter of time, at this stage we demand that the preliminary investigation body should immediately release Levon Hayrapetian from custody. Once released, in addition to providing assistance to the preliminary investigation, he will have the opportunity to improve his health condition, about which we are most concerned,” reads the statement.
Hayrapetian, 65, was arrested by Russian Federal Security Service officials on July 15. Last Thursday, a Moscow court allowed the businessman’s two-month imprisonment while investigators conduct a probe into his alleged criminal connections and involvement in some illegal financial dealings. Official charges against Hayrapetian are expected to be brought on July 24.
Hayrapetian is considered to be one of the wealthiest Armenians in the world. He is known to have invested millions of dollars into developing Nagorno-Karabakh’s infrastructure and renovating the area’s historical-cultural monuments. His charity included a mass wedding for hundreds of Karabakh couples in 2008 and sponsorship of the construction of a military college in Martakert.
Armenian side has one casualty and 2 injuries – MOD
YEREVAN. – One military serviceman has died and two others are wounded while driving back the adversary’s sabotage-intelligence operations, in the early morning hours on Saturday, at the northeastern borders of Armenia and on the Line of Contact of the Artsakh [Nagorno-Karabakh]Republic (NKR), in several directions.
Armenia Minister of Defense Seyran Ohanyan stated the aforementioned on Saturday.
“Suffering losses, the adversary withdrew. Glory and honor to all those soldiers thanks to whose blood that has been shed that today we live in the conditions of peace,” the minister said.
In Ohanyan’s words, the subdivisions of the Armenian armed forces control of the situation.
The NKR MOD reported earlier that the adversary on Saturday attempted to conduct sabotage-intelligence infiltrations in the northern and northeastern directions of the Line of Contact between the Karabakh-Azerbaijani opposing forces.
The NKR Defense Army vanguard units, however, drove the adversary back to its initial positions causing them to suffer casualties and leave behind a large number of technical equipment and armaments.
Sadly, however, Armenian military serviceman Khachatur Badasyan (born in 1994) was mortally wounded as a result of the military operations.
ISIS militants blow up Prophet Jonas’ tomb in Mosul – (video)
(Reuters) People walk through the rubble of the Prophet Younis Mosque after it was destroyed in a bomb attack by militants of the Islamic State, formerly known as the Islamic State in Iraq and the Levant (ISIL) in the city of Mosul, July 24, 2014.
The shrine of Jonas – revered by Christians and Muslims alike – has been turned “to dust” near Iraq’s Mosul. Footage of the event was posted online, and witnesses said it took ISIS militants just an hour to stuff the mosque with explosives.
“ISIS militants have destroyed the Prophet Younis (Jonah) shrine east of Mosul city after they seized control of the mosque completely,” an anonymous security source told the Iraq-based al-Sumaria News.
The extremist group ISIS changed its name from the Islamic State of Iraq and Syria (ISIS/ISIL) to just the Islamic State (IS), after formally declaring a new caliphate in Syria and Iraq at the end of June.
Muslims know the tomb as the shrine of Younis, whereas Christians refer to it as the tomb of Jonas.
Jonas is renowned for having been swallowed by a fish or a whale in the Bible’s Old Testament, with a similar story being present in the Koran. The site upon which the mosque had been built dated back to the eighth century BC.
“[The] Islamic State completely destroyed the shrine of Nabi Yunus after telling local families to stay away and closing the roads to a distance of 500 meters from the shrine,” an anonymous official from the Sunni Endowment, which manages Sunni religious affairs in Iraq, told AFP.