"A relentless wave of killing has left thousands dead since April in the country's worst spate of bloodshed since 2008. The surge in violence raises fears that Iraq is hurtling back toward the widespread sectarian killing that peaked in 2006 and 2007, when the country was teetering on the edge of civil war."
"The countries that have funded the US's current account deficits (especially Japan and China) are the ones with the real problem. They have to pour capital into the US (egg by buying US Treasury securities) because the only way to avoid a domestic financial crisis is to have a substantial current account surplus. Those countries do not have capitalistic (i.e. profit-focused) economies, because their systems are built on cultural traditions that are radically different to those in Western societies."Having various forms of 'cronyist' / nationalistic financial systems, they cannot afford to have their major financial institutions having to borrow in international markets – which they would have to do unless they suppressed domestic demand by exporting a significant amount of their income (egg to the US)."It is wrong to view QE in the US (or elsewhere) as simply about maintaining (unsustainable) economic growth in the US. It is about a clash of civilizations which is like the Cold War – but no one mentions it. It has been going on for decades."If capital flows to the US are now drying up, I would strongly suspect that countries that had previously supported those flows (egg Japan / China / emerging economies) are encountering systemic financial problems – so they are unable to find capital to invest, rather than because there is no desire to maintain ongoing current account surpluses."Demand may thus dry up in the US leading to a recession – but the consequences will be much worse for countries whose financial systems will experience crises unless there is strong US demand to allow them to enjoy current account surpluses."