AUGUST 28, 2015

Traders work on the floor of the New York Stock Exchange on August 25,
following a day of steep drops in global markets the previous day in New York City.

Fear Index Explodes

as World Careens Toward
Global Market Meltdown

spencer platt/getty images

brokers clinging white-knuckled to their computer keyboards

and iPadswatching in disbelief as stock prices went into free
fall. In less than 10 seconds on Monday, over 1,000 points were
wiped off the Dow Jones Industrial Average. Hundreds of billions
of dollars simply ceased to exist.
Three minutes later, the carnage continued as it fell an additional 300 points. The 1,300-point loss was the sharpest single
intra-day drop on record.
Analysts wondered what would happen next. Never before
have the markets been exposed to such massive leverage. Corporations have borrowed a stunning $9.3 trillion since the

n August 24, many Americans woke up to the smell of

coffee brewing and news that Chinas stock market was once
again in free fall. Yawn.
By 9:30 est, a totally different aroma
was infiltrating boardrooms and offices
inside Americas biggest banks and Wall
Street houses.
It was fear.
Suddenly, memories of the 2008
economic crash were being replayed
in high-definition Technicolor with
ROBERT MORLEY

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Trumpet Weekly | August 28, 2015

and Prime Minister Tony Abbot took to the airwaves to reassure

investors after Australias benchmark stock index dove at the
sharpest rate since 2009.
Im absolutely confident, absolutely confident, that the fundamentals of the Australian economy and the global economy
are still good, are still good. Without doubt, that is the situation, Hockey told the Nine networks Today Show. In fact there
is no crisis now. It is a correction.
Could he have mentioned absolutely confident one more time?
I think its important that people dont hyperventilate,
Prime Minister Abbott said. The fundamentals are sound.
Former Federal Reserve Chief Ben Bernanke talked a lot about
Americas fundamentally sound economy before the 2008 crash
too.
When a prime minister is in front of the cameras talking up
the market, you know that everything is not sound.
By end-of-day Monday, the Dow Jones tried to rally, but it still
ended down almost 600 points. It was the first time in history the
Dow had fallen by 500 points on two consecutive days.
On Tuesday, the markets initially rose but the Dow ended
the day down another 205 points. There wasnt even a dead cat
bounce. It was the biggest reversal since 2008.
The markets are giving some pretty strong warning signs
that all is not well. It is beginning to look a lot like the days prior
to the 2008 economic meltdown.
And we havent even reached September yet.
Most crashes tend to be in the fall, Commentarys John
Steele Gordon observes. I think its human psychology, you
tend to be more cautious in the fall. The speculations of summer
that seem so brilliant, suddenly, when the chill winds of October come, you wonder if theyre such a good idea and you try to
get out.
Whatever the reasonthe September/October time frame
does tend to be the most dangerous. We are almost there.
But dont worry. The pundits on tv say it will be fine, so it
must be. So go ahead and buy the dips. Pull out the credit card.
Buy yourself something nice maybe another cup of highpriced coffee. And enjoy the aromabecause you might be
smelling something else before you know it.
If instead you would like some help putting your financial
house in order, read this. It is free.
Follow Robert Morley

beginning of 2009. Rarely have investors borrowed such massive sums on margin.
Could this be the beginning of another Black Monday? Another
1929?
For a brief period, anxiety shot so high it blew out the Chicago Board Options Exchange volatility indexoften referred
to as the fear gauge. The computer algorithms couldnt handle
the unprecedented volume as the index tripled. For 30 minutes,
investors were greeted with patchy data and empty screens.
The last time the index reacted so sharply, bad things followed. Think 2008 Great Recession and Wall Street meltdown.
But market participants should not have been flying blind.
The fear gauge was pinging all month. If it ends at these levels, it
will be the biggest one-month percentage gain in the fear gauge
in history.
A lot of other signs of trouble were evident too.
The riskier portion of the junk bond market, which many
corporations are forced to rely upon for their financing needs,
got absolutely massacred just days prior to the stock market
mayhem. The average cost to borrow for a ccc-rated company
spiked from 13 to 16 percent on August 13. It was less than 7 percent a little over a year ago. These kind of vertigo-inducing
events are rare in normal times, says analyst Wolf Richter. And
there havent been any [normal times] since the [last] financial
crisis.
In July, the Empire Manufacturing Indexthe all-important measure of business activity in New York Statealso plummeted to levels only before seen in the last two economic recessions.
Shipping rates have collapsed, highlighting the sharp slowdown in global trade. There is now a full-blown August storm
sweeping through global markets, writes the Telegraphs
Ambrose Evans-Pritchard.
Commodity prices are collapsing too. Oil dipped below $40
per barrel on Monday, down 60 percent from a year ago. Coal,
iron ore, potash, uranium, soybeans, sugarall down. Oranges,
wheat, nickel, silver, cementall down too.
Surely somebody should have noticed that something was
wrong.
On Monday, as world stock markets followed China and the
United States into the red, it became clear that it caught authorities off guard. In Australia, both Finance Minister Joe Hockey

MIDDLE EAST
SALVATION IS CREATION | AUGUST 28
THE DEMISE OF GLOBALIZATION AND THE RISE OF NATIONALISM | AUGUST 27
EXPERT: IM ABSOLUTELY CONFIDENT! | AUGUST 26
NOURISHED BY GOOD DOCTRINE | AUGUST 25
BRITAIN PAYS FOR REPAIRS TO EMBASSY IRANIAN MOB RANSACKED |
AUGUST 24

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Trumpet Weekly | August 28, 2015

Iranian Official: Israels Annihilation Still Our Central Goal

Arutz Sheva | August 25

changed at all; Israel should be annihilated and this is our ultimate slogan, Sheikholeslam said Tuesday, according to the
semi-official Fars News.
Sheikholeslam also rebuffed Hammonds call for past hostilities between Iran and Britain to be forgotten, retorting that Iran
will never forget the past and Britains colonialist moves.

senior Iranian official has reiterated that Iran views

the annihilation of the State of Israel as its most central foreign policy, despite warming relations with Western powers.
The Iranian Parliament Speakers Adviser for International
Affairs, Hossein Sheikholeslam, made the comments in a speech
to reporters in Tehran, during which he also attacked the British Foreign Secretary [Phillip Hammond] for suggesting Irans
hostility towards Israel had softened since the nuclear deal.
Our positions against the usurper Zionist regime have not

RELATED: WHY IRAN CAN AFFORD TO BE INSANE

Irans New Launcher Paves Way for Longest Range Missiles

Arutz Sheva | August 22

program isnt up for discussion.

Regarding the satellite launcher, Inbar said it strengthens
the known military cooperation between North Korea and Iran.
But beyond that, he noted that by deepening its heavy rocketry technology for outer space, it is developing the means to
contribute to assault rocketry of the longest range.
[At the unveiling ceremony of the missiles, Irans President
Hassan Rouhani said, Irans strategy is based on defense and
deterrence. The first line is diplomats and the second line is generals. Diplomats should be backed by generals. If they fail, it is
the generals turn to come forward. Arutz Sheva said Rouhanis
remarks were a clear indication that military action will follow
the failure of nuclear diplomacy.]

ran unveiled on Saturday its new Fateh-313 surface-to-surface missile with a 500 kilometer (300 mile) range, as well as
its massive 27-meter-tall Simorgh satellite launcher, which one
expert says may pave its way to intercontinental ballistic missiles
(icbms).
Tal Inbar, head of the Fisher Institute for Air & Space Strategic Studies Space Research Center, told Arutz Sheva on Saturday night that an analysis of the pictures of the new launcher
reveals a great likeness to North Koreas satellite launcher technology.
This rocket will allow Iran to launch satellites double the
weight it is currently able to, and additionally it will bring it
closer to expertise in the needed technologies for developing
especially long-ranged ballistic missiles up to intercontinental
ranges, said Inbar.
The expert appraised that Irans unveiling of the Fateh-313 is
meant to be a message to its rivals in the Persian Gulf such as
Saudi Arabia, and also a warning to Israel that it may transfer
the advanced new missiles to its terror proxy Hezbollah in Lebanon.
It also has an element of protest against the fixed members
of the UN Security Council, [because] during the negotiations
with Iran on its nuclear program, Iran stated that its missile

[W]e can expect [Irans] provocations to continue to get

stronger. Events are barreling toward the conclusion prophesied in Scripture: Iranself-assured and belligerent, lulled by
years of all-bark-no-bite response from the Westis going to
push once too many, too hard, too far. And the sudden, shocking, overwhelmingly violent response they encounter will be
their end!
Sanctions Fawil Again: Iran Pushes Back, theTrumpet.com,
July 4, 2012

On Syria: Germany Stands Out, Stands Up

Al Arabiya | August 27

disregarding Europes Dublin protocol and enraging the farright groups in the process.
Merkel called for restoring European values in tackling the
humanitarian problem, for sharing the burden dismissing the
far-right attacks as disgusting, how right-wing extremists and
neo-Nazis are trying to preach dull hate messages. Merkel also
vowed there will be no tolerance of those who question the dignity of other people.
Germanys embrace of thousands of Syrian asylum seekers exposes how little other countries have done on this issue.
Amnesty points out that excluding Germany and Sweden, the

heyre calling her Mama Merkel, sending her love messages on Twitter and showing gratitude unseen recently for
a Syrian or Arab leader. Germanys chancellor, Angela Merkel, is
being celebrated by many Syrians this week, for defying EU rules
and showing compassion to a refugee population thats been let
down all too often in the last four years.
Merkel might not be the most charismatic leader or orator
on the global stage, but this week, Germanys chancellor has
shown both the audacity and the empathy in addressing the Syrian refugee problem. On Tuesday, Berlin announced its intention to welcome all Syrian asylum seekers to stay in the country,

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Trumpet Weekly | August 28, 2015

choose to ignore it.

remaining 26 EU countries have pledged a mere 5,105 resettlement places, or 0.13 percent of Syrian refugees in the main host
countries.
Ironically, the countries that are most involved militarily
in the Syrian war, with the exception of Turkey, are the ones
doing the least on the refugee issue.
With no end in sight for the Syrian war, however, and with
militias multiplying in numbers and nefariousness, the Syrian
refugee crisis is only expected to intensify in the coming period.
For Germanys chancellor, who is being called by some activists
as Merkel of Abyssinia in reference to the Muslim migration
to Ethiopia in the seventh century, this will boost Berlins credibility in the Middle East as an impartial problem solver, helping alleviate the suffering as many who directly contribute to it

[Trumpet editor in chief Gerald Flurry] wrote: For Germany,

Syrias revolution isnt about a humanitarian crisis at all. Its
about geopolitics and how Berlin can aggressively advance
its strategic interests in the Middle East! As you continue
watching the impending demise of Bashar Assad, watch this
trend of Germany moving deeper into the region to check Iran.
Watch for Iran to lose its hold in Syria. Expect the Syria-Iran
alliance to break. Above all, watch to see if Germany doesnt
make a strong move to pick up the piecesand to actually use
Syria as a tool to fight Iran.
An Important Trend to Watch as Assads Rule Weakens in Syria,
theTrumpet.com, June 21, 2015

EUROPE
THE RISE IN NATIONALISM | AUGUST 28
FEAR IN GLOBAL MARKETS, THE EUROPE OF THE BIBLE TAKES SHAPE, LIVE BY
EVERY WORD AND MORE | AUGUST 26

EU States Favor Christian Migrants From Middle East

Andrew Rettman, EU Observer | August 21
WE TALKED ABOUT THIS

None of them are willing to say quite what Slovakia is saying.

But Ireland (120 refugees) did echo Slovakia. A Justice Ministry spokesman noted that language skills, family links, or cultural ties relate to the capacity of the people relocated to integrate into their new host country, which is something to be
taken into account in the relocation process.
A contact from one of the three Baltic states (725 asylum
seekers and refugees in total) also noted the region is becoming
increasingly anti-Muslim.
In Latvia and Lithuania, there is a nascent debate about
[banning] the wearing of the burka, the government source
said.
[Hungary is] one of the few states which has so far not volunteered to take in any asylum seekers or refugees under the EU
program.
Its right-wing prime minister, Viktor Orban, said in July that
We would like for Europe to keep belonging to the Europeans
to preserve the Hungarian Hungary.
The Czech president, Milos Zeman, has also attacked EU
political correctness.
He recently said refugees from a completely different cultural background would not be in a good position in the Czech
Republic and said Muslim migrants are potential terrorists.

U member states with a Roman Catholic heritage are

showing a preference for taking in Christian migrants, despite
their obligations under EU law.
The Slovakian government was the latest to issue a statement.
Its Interior Ministry told EU Observer on Thursday (August
20) that its not a discriminatory country and that if some
Muslim people come to Slovakia and decide to stay in our country and ask for asylum, they will be [put] in [a] normal asylum
process.
But it added that, in practice, Muslims dont want to live there
and end up moving on to EU states with larger Muslim communities.
Cherry-picking migrants is against EU law. Its Charter of
Fundamental Rights contains explicit clauses on non-discrimination.
But the EU relocation mechanism, the final details of which
are to be decided by EU officials and member states experts in a
forum for resettlement and relocation next month, leaves wiggle room for national preference.
EU Observer also contacted ministries in the Czech Republic,
Ireland, Poland and the Baltic States, all of which have a strong
Catholic or Protestant heritage.

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Trumpet Weekly | August 28, 2015

country in Eastern Europe.

The more secular countries quite often have the reaction that
it [a Christian-only rescue mission] is discriminatory, he said.
A contact from another agency which works to highlight the
persecution of Christians in the Middle East, who asked not to
be named, told this website: There are quite a few EU countries
which have, for years, unofficially given preference to asylum
applicants of Christian origin.
She named Belgium, Ireland, Hungary, Poland, Slovakia and
Sweden, which has a strong Christian-democrat element in its
establishment, as well as an increasingly popular anti-Muslim
party, the Sweden Democrats.
Sweden has volunteered to take 1,860 asylum seekers and
refugees in the EU program.
It also hosts the highest number of protected migrants per
capita in the EU.

Poland, in July, already took in some 60 Christian-only families from Syria.

The Polish prime minister, Ewa Kopacz, in the run-up to
the project, said Poland, as a Christian country, has a special
responsibility to help Christians. The Polish opposition party,
PiS, which is neck-and-neck in polls ahead of October elections,
has said multiculturalism is a failure in Europe.
Belgium, which also has a Catholic heritage, has volunteered
to take 2,464 asylum seekers and refugees under the EU scheme.
In July, it already took in some 200 Christians from Syria, in
a separate ngo initiative.
Operation Safe Havens is in advanced negotiations to resettle a second group of Christian-only families in the EU next
month.
[Its spokesman] asked EU Observer not to name the host state
due to the sensitive timing of the talks, but it is also a Catholic

What Europes Refugee Influx Means for EU Foreign Policy

Judy Dempsey, Real Clear World | August 25

Slovakia and the Czech Republic. Muslims, shamefully, are not

welcomed.
With the benefit of hindsight, the EU should have acted
in Syria by using hard power against the regime of President
Bashar Assad. The longer the European governments sat on the
sidelines, the more intractable the conflict became.
In Libya, the EUs crisis management machine was almost
nonexistent, even though the European Commission had known
for several years about the potential scale of the refugee problem emanating from Libya and the political and social impact
of overthrowing the regime of former strongman leader Muammar Qadhafi.
The vacuum left by the collapse of the regime was rapidly
filled by a plethora of tribal movements as well as criminal and
terrorist gangsnot to mention the havoc wreaked in nearby
Mali.
Ultimately, this is about the EU recognizing that its crisis management and soft power toolsboth always too slow
to react, let alone anticipatecan only go so far without hard
power.

he European Unions approach to crisis management is

reactive. What is more, the union is unwilling to consider
using hard power to underpin its values.
It is as if European governments were not warned about
the current refugee crisis and its serious consequences for
Europes foreign and security policy. Over the past year, hundreds of thousands of refugeesparticularly those fleeing the
wars in Syria and Iraq, unrest in Afghanistan, and repression in
Eritreahave risked their lives to reach Europe.
The refugees are beholden to gangs of smugglers, with Albanians taking the leading role in exacting huge fees to get the
migrants to an EU country.
Unless the EUs crisis management policy radically changes,
the flow of refugees will continue. Few North African and Middle Eastern countries provide security, stability or a democratic
and economic perspective for their youth.
As it is, in most Eastern European countries there is an
anti-Muslim sentiment and a deep reluctance to open the
doors to people who are seeking security and freedom.
Poland has now officially said it will accept Christiansas have

Putting the French Train Attack Into Context

Stratfor | August 24

high-volume train lines, so they will therefore remain vulnerable soft targets for the foreseeable future.
Second, the would-be attacker was known to security agencies in Spain and France. The number of potential attackers at
any given time is very high, especially in Europe, and authorities simply do not have the resources to place them all under
constant surveillance. Surveillance efforts must therefore
favor operatives who are considered to be the most dangerous.
This means that some possible assailants will continue to slip
through the cracks.
Third, the attacker was able to obtain weapons in Belgium.
Several attacks, including the Charlie Hebdo attack in Paris
on January 7, and thwarted plots have been carried out with

he media is rife with speculation about the motives of

the Moroccan gunman who attacked a Paris-bound train
August 21. Ayoub al-Khazzani, who was subdued by three American tourists aided by a British man living in Paris, brought an
AK-47, a pistol and a box cutter onto the train.
The August 21 attack fits into several analytical narratives
that Stratfor has been following. First, it highlights the vulnerability of rail transit; trains and subways continue to provide
soft targets for would-be attackers. As we have previously discussed, rail transit is an enticing target for a terrorist attack
because it offers a dense concentration of potential victims,
neatly packaged into a small metal box. It simply is not economically feasible to implement airport-like security measures for

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Trumpet Weekly | August 28, 2015

weapon not malfunctioned, the men may have had to charge into
a hail of fire. When confronted by danger, they possessed the
proper mindset to charge the gunman instead of freezing or sitting by passively in denial, waiting to be shot. Had they hesitated
and given the gunman time to clear the malfunction in his AK-47,
the story in the news today may have been far more tragic.

weapons obtained on the Belgian black arms market.

Fourth, although the attacker allegedly had traveled to Syria
ostensibly to obtain military training at a jihadist camphe was
not highly trained. After his first few shots, his AK-47 malfunctioned and he struggled to clear it. This malfunction gave the three
Americans and the Briton time to rush and disarm him. Had the

Serbia Sees Its Path to EU Open After Pact With Kosovo

Misha Savic, Bloomberg Business | August 25

Serbia seeks to follow fellow former Yugoslav republics Slovenia and Croatia into the worlds biggest trading bloc and hopes
to gain entry by the end of the decade. Improving ties with the
former province is an EU condition for Serbia, which refuses to
recognize Kosovos 2008 secession.
In a way, this is recognition of Kosovo independence by Serbia, broadcaster B92 reported, citing Kosovos foreign minister,
Hashim Thaci. Serbia signed the documents under pressure
from the international community.

erbia resolved most of its disputes with Kosovo in European Union-mediated talks and signed four agreements with
the breakaway province that the EU blocs Foreign Policy Chief
Federica Mogherini described as landmark.
The documents allow Serb-populated municipalities in
Kosovo to run some of their affairs, such as education, health
care and economic development, with Serbias financial backing.
There are no more obstacles for starting accession talks
with the EU, Vucic said. Our European path is open.

TW IN BRIEF

efugee shelters in Germany burned down: A fire broke out

on the grounds of a refugee center in northern Berlin Wednesday afternoon. The building, which used to be a gym of a former
mental hospital, was covered in flames as firefighters tried to
put out the fire. According to an eyewitness, as reported by local
media, there was an explosion that preceded the firewhich
would indicate arson. The mood in Germany is tense as many
Germans are upset with the incoming surge of refugees. Numerous other attacks and threats have occurred this week. Another
temporary shelter for asylum seekers was burned down on Tuesday just west of Berlin.

ermany declares all asylum seekers welcome: Germany

will take in all asylum seekers from Syria, regardless of which
EU nation they first entered, the government announced yesterday. Germany is now the first EU nation to suspend a 1990 protocol, which says that refugees must request asylum in the first EU
nation they enter. The government also announced they would
revoke all current expulsion orders for Syrian asylum seekers.
Germany is expecting nearly 1 million migrants this year, and is
Europes top destination for migrants. The decision to allow in
Syrian refugees will draw in even more migrants. Yet the topic is
contentious, with some violently opposing the influx.

ASIA
China Builds Up Its Fleet of Ships That Make Artificial Islands
War Is Boring | August 27

a construction halt, calling it unfeasible and reiterating that

the South China Sea islands are Chinas territory. Recent construction has massively augmented seven locations . [China]
acknowledged that necessary defense facilities would emerge
as part of the next development phase.
Beijings South China Sea land reclamation work has reportedly resulted in 2,900 acres of land .
The scale of Chinas land reclamation has alarmed both fellow claimants such as Vietnam and the Philippines as well as
Asia-Pacific actors like the United States, with the predominant
American concern being that China will inhibit freedom of navigation, and freedom of the seas as traditionally understood, in

hinas burgeoning dredging fleet has not only excavated

new land in the South China Sea, but has also given China a
big new shovel to break ground on the seaward vector of Chinas
One Belt, One Road initiative, the Maritime Silk Road.
Even after China finishes constructing new islands, its
dredgers stand ready to support port construction and channel
widening along its strengthening Silk Road. Chinas rapid rise to
the forefront of world dredging exemplifies its ability to leverage its broad economic and technological achievements into the
advancement of the countrys strategic goals.
While China announced on August 11 that reclamation
had halted in the area, it has also rejected U.S. proposals for

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Trumpet Weekly | August 28, 2015

Chinas ability to change geography so quickly should not be

ignored, especially as China works to develop a Far Seas-capable
navy and, potentially, its first overseas military support facility
in Djibouti. With dredging, China has proven that it is capable
of mustering a difficult-to-match effort when it comes to rapidly
modernizing specific industries when it perceives a need, and
especially at immediately leveraging that development in order
to further its foreign policy.

the strategically significant South China Sea.

This concern appears well founded. Chinese ambassador to
the Philippines Zhao Jianhua recently stated that there is no
freedom of navigation for warships and airplanes.
China has created a fleet capable of literally altering geography, creating islands in the span of 18 months where before
there were only reefs and shoals. The rapid construction of
the islands shows that these ships served a geopolitical purpose.
Growing use of port expansion to increase influence likewise
suggests that China is using dredgers as part of its diplomacy.

RELATED: WILL CHINA CALL AMERICAS MILITARY BLUFF?

China Censoring Black Monday on Countrys Biggest Search Engine, Baidu,

Stopping Citizens Looking for Information About Financial Chaos
Independent | August 26

results related to the chaos, according to George Chen, managing editor of the international edition of the South China Morning Post. When searching for the Chinese characters that translate to stock disaster, the results say that Due to related rules
and policy, some search results wont be shown.

hina has been accused of censoring reports about the

financial chaos in the country, stopping its citizens from
looking for reports about whats going on.
Chinas Black Monday has sent share prices around the
world into free fall, and has led to renewed worries about a slowdown in growth in the country. But its citizens dont seem to be
able to find out why.
Baidu, the countrys biggest search engine, is censoring

North Korea Negotiator Hails Turning-Point for Ties With South

Agence France-Presse | August 27

His comments, reported by the Norths official kcna news

agency, contrasted with those of lead negotiator Hwang
Pyong-So, who focused on spinning the accord as a victory for
the North and a salutary lesson for the South.
The deal, struck in negotiations in the border truce village of
Panmunjom Tuesday, ended a tense military standoff that had
pushed the two Koreas to the brink of an armed clash.

ne of the two North Korean negotiators involved in

recent crisis talks with South Korea spoke Thursday of a dramatic turning point for relations between the two countries.
In an upbeat and conciliatory assessment of the agreement
struck at the talks, Kim Yang-Gon, a senior party official responsible for South Korean affairs, said it carried the potential for a
genuine improvement in cross-border ties.

Russia and Allies Conduct Military Exercises Near Baltics

Eurasianet | August 23

auspices of the Collective Security Treaty Organization, the Russia-led political-military bloc.

roops from Central Asia, Armenia and Belarus are conducting military exercises with Russia near the borders
of Estonia and Latvia. The exercises are being held under the

Tensions in Asia-Pacific Amid China-Russia Drills

ValueWalk | August 24

navies. This year, the drills are supposed to show a high level of
mutual strategic trust between armies of the two powers, which
is likely [to] promote both the strategic cooperation between
Beijing and Moscow and their military friendship.
If Beijing and Moscow decide to create an official alliance, it
would completely change global strategic map, while the U.S.
and Japan would face a real threat. Such an alliance would be
a true challenge for the next president of the United States to be
elected in 2016.

early 30 vessels, 23 aircraft, 30 armed vehicles and

nearly 500 marines from China and Russia have entered the
active phase of the Joint Sea 2015 (ii) drills held in Russian territorial waters and in neutral waters off the Sea of Japan.
Although a source close to the joint maneuvers told Xinhua
news agency that the drills are not targeted at any third party
and are not relevant to the regional status quo, the West and
Japan are still worried about the meaning of such exercises at
this particular time.
This is the fourth joint drills of the Russian and Chinese

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Trumpet Weekly | August 28, 2015

Over 2,000 Russian Troops Killed During Ukraine Invasion

Ukrainian Policy | August 25

But the original uncensored article remained accessible in

a cached version, and the key passage of that reads as follows,
Zelfanov says: The government of the Russian Federation has
taken an important decision about the monetary compensation
of military personnel who have taken part in military actions in
the east of Ukraine.

Moscow newspaper reported that Russia had lost no

fewer than 2,000 dead in the fighting in Ukraine and another
3,200 serious casualties by February 1, a story that stayed up until
Kremlin censors removed those lines from the article lest it call
into question Vladimir Putins constant refrain that there are no
Russian soldiers fighting in Ukraine.

Chinas Xi Vows Unceasing Fight Against Tibet Separatism

Reuters | August 26

Autonomous Region and also the 80th birthday of Tibetan spiritual leader the Dalai Lama, who has lived in exile in India since
fleeing Tibet in 1959 following an abortive uprising.
We should fight against separatist activities by the Dalai
group, Xi was quoted as saying.

hina will wage an unceasing fight against separatism in

its restive mountainous region of Tibet, President Xi Jinping
said, as the government repeated it would never accept exiled
Tibetan spiritual leader the Dalai Lamas genuine autonomy proposals.
It is 50 years since China established what it calls the Tibet

Devaluation Stunner: China Has Dumped $100 Billion in Treasuries in the Past Two Weeks
Zero Hedge | August 26

entire first half of the year!

What happens when China liquidates all of its treasury holdings is anyones guess, and an even better question is will anyone else decide to join China as it sells U.S. treasuries at a never
before seen pace, and best of all: Will the Fed just sit there and
watch as the biggest offshore holder of U.S. treasuries liquidates
its entire inventory?

s part of Chinas devaluation and subsequent attempts

to contain said devaluation, it has been purging foreign
reserves at an epic pace. Said otherwise, China has sold an epic
amount of treasuries in the past two weeks.
How epic? [I]n the past two weeks alone China has sold a
gargantuan $106 (or more) billion in U.S. paper just as a result of
the change in the currency regime!
But wait, theres more: Recall that one month ago we posted
that Chinas Record Dumping of U.S. Treasuries Leaves Goldman Speechless, in which we reported that China has sold
some $107 billion in treasuries since the start of 2015.
When we did that article, we too were quite shocked at that
number. However, wejust like Goldmanare absolutely
speechless to find out that China has sold as much in treasuries in the past two weeks, over $100 billion, as it has sold in the

Herbert W. Armstrong warned of a gigantic financial

crisis that would shake the economic world. He said this
unparalleled crisis would motivate Europe to unite into a
great superpower.
Gerald Flurry, The In God We Trust Dollar, Trumpet,
November-December 2008

Russia and China Close the Military Training Gap

Stratfor | August 25

almost every week. According to figures compiled by the Atlantic Council, the Russian military held at least six major military exercises involving between 65,000 and 160,000 personnel
between the start of 2013 and the end of 2014. During the same
period, natos largest exercises barely exceeded 6,000 personnel.
Though the United States will likely continue to enjoy its
absolute training advantage well into the future, the wide lead
U.S. military planners have come to expect is no longer a guarantee. Both Russia and China appear to be determined to continue investing in their forces development, despite growing
financial constraints; even if military spending is ultimately
cut, training and instruction will likely continue to take precedence over other areas.

or several decades, the American military has relied on

its superior training to ensure victory in its campaigns across
the globe. But the absolute advantage in training that the U.S. military has come to depend on since the late 1970s is no longer as
certain as it once was. Russia and China, recognizing the value
of highly trained troops, have begun ramping up and revamping
their training programs in recent years. Despite their many significant differences, Russian and Chinese forces also often train
and cooperate with each other. Their navies are currently participating in Joint Sea 2015, the largest joint naval exercise in history.
Scheduled to last until August 28, the event features 22 warships,
submarines and support ships in a battery of amphibious, antisubmarine, antiaircraft and antiship exercises.
Both countries also hold at least one significant exercise

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Trumpet Weekly | August 28, 2015

wrote in 1956. The sixth of these punishing plagues will be a

military invasion of Europe by forces from Russia and the
Orient. By that time, the Red Armies of Russia, China and allies
will number 200 million!
Russia, China Plan Military Exercises, theTrumpet.com, April 28

As early as 1956, the Trumpets predecessor, the Plain Truth,

accurately predicted that these two nations would form a
dangerous partnership. Herbert W. Armstrong, founder of the
Plain Truth, warned the world about a coming Asian conglomerate that would push at Europe. Plagues, terrible beyond
description, shall fall upon this fascist European empire, he

ANGLO-AMERICA

The Former Prophets

Gerald Flurry,
The Key of David | August 28

hese books of the Bible contain prophetic history, yet few

study them and even fewer understand their significance for
today.

Bilingual Services Audit Tackles Long-Standing Problem

Catalyst Chicago | August 25

month ago, cps (Child Protective Services) announced

it would audit services for English-language learners at every
school in the city. Now, officials say, the review will begin in the
fall at schools with the highest number of English learners and
then work down the line.
At 123 schools, at least a third of students are working to
become proficient in English. At 545 schools, there is at least one
student, according to data from last year. Officials are hoping to
complete the task by mid-February but might return to schools
in the spring if problems persist.
The districts goal is for all schools, including charters, to

meet state- and federally mandated requirements for providing services to students learning Englishan issue that has
plagued the district for decades.
Youre choosing between servicing your bilingual kids
and having a classroom with 40 kids. Thats the reality of student-based budgeting, says one former bilingual teacher who
asked not to be identified because she is looking for work in cps.
How are you going to justify hiring a teacher to pull out your
handful of kids in each grade that need support?
Today there are 66,000 students working to learn English
the majority speak Spanish as their first language.

Slain Christians Head Allegedly Bashed by Muslim Refugees

World Net Daily | August 25

know the immigration status of the suspects.

Portland has been on the receiving end of a steady infusion
of Somali refugees over the past 15 years, and Mohamed and
Sheikh appear to have been part of that community, although
no mention of their national origin has even been mentioned in
the local media.
Apparently its a dont ask, dont tell policy with regard to
Somali refugees in Maine, said refugee watchdog Ann Corcoran.
The U.S. State Department, in cooperation with the United
Nations high commissioner for refugees, has sent 1,379 Somali
refugees to Maine since 2002, with 1,010 of them going to Portland, according to the State Departments refugee database.
The UN has sent more than 110,000 Somalis to U.S. cities and
towns as refugees since the early 1990s. The largest Somali
community in the U.S. lives in the Minneapolis-St. Paul region
of Minnesota, which also happens to be the nations biggest hotbed of jihadist recruitment.

he apartment was in disarray, with empty beer cans and

trash strewn about, as though a party had come to an abrupt
end at the onset of a physical altercation.
Akoa, 49, apparently knew his assailants, but police have not
commented on the nature of their relationship.
He had been beaten and kicked in the head, and bashed in
the head with a piece of furniture in an assault that continued
relentlessly for hours, police said in the arrest affidavit.
But they were silent on what touched off the vicious attack.
Of the three Muslim assailants, at least two have common
Somali namesMohamud Mohamed, 36, and Osman Sheikh,
31. The third suspect is Abil Teshome, 23.
There were several other people in the apartment when the
altercation broke out, Vogel told wnd. But how many of them
understood what was being said is in question, since the arrest
affidavit states that the words being exchanged between Akoa
and his assailants were not in English. Vogel also said he did not

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Trumpet Weekly | August 28, 2015

on terrorism-related charges, yet the U.S. State Department continues to import Somali refugees into the U.S. at a rate of 600 to
800 per month. Hundreds more are now coming from the jihadist capital of the world, Syria, even as persecuted Christians
from that country are ignored by the Obama administration.

In April, U.S. Attorney Andrew Luger admitted we have a

terror recruitment problem in Minnesota as he announced the
arrests of six Somali men from Minneapolis who had repeatedly
tried to board flights to Turkey where they planned to cross into
Syria and join isis. Dozens of other Somalis have been arrested

Revenge Race Murder

Daily Mail | August 27
WE TALKED ABOUT THIS

At the same time, he professes a deep respect for other mass

shooters like Virginia Tech gunman Seung-Hui Cho.
Also, I was influenced by SeungHui Cho. Thats my boy
right there. He got nearly double the amount that Eric Harris
and Dylann Klebold got just sayin.
He goes on to say that he has faced both racial and sexual discrimination as a black, gay man and that he was just waiting to
explode.
Yes, it will sound like I am angry I am. And I have every
right to be. But when I leave this Earth, the only emotion I want
to feel is peace.
The church shooting was the tipping point but my anger
has been building steadily Ive been a human powder keg for a
while just waiting to go boom!!!!
At one point in the manifesto, he even confesses to killing his
cats in a forest close to where he lives, blaming the news station
for the animals deaths.
Flanagan, 41, had a long series of complaints against coworkers nearly from the beginning of employment at the tv station,
said Dennison, now an official with the Hawaii Department of
Land and Natural Resources.
All of these allegations were deemed to be unfounded. And
they were largely under along racial lines, and we did a thorough investigation and could find no evidence that anyone had
racially discriminated against this man.
According to the station, the situation got so bad he was
asked to contact employee health care over fears for his mental stability.

man who was fired from his job as a television reporter

two years ago took revenge against the small-town Virginia
news station by executing two of his former coworkers on live
television, and then posting disturbing first-person video of the
attack on social media.
Five hours later, police cornered Flanagan a three-hours
drive northeast in Fauquier County, Virginia, where he shot
himself in an attempt to commit suicide. Flanagan initially survived the gunshot wound, but died not long after at approximately 1:30 p.m.
Before he was caught by police, Flanagan took to Twitter to
explain his reasons for killing his former coworkers.
Flanagan, who is African-American also allegedly contacted abc News after the attack, sending the news network a
23-page document elaborating on his motivations, saying he
wanted revenge for the Charleston church shooting and was
inspired by infamous mass shooters.
In the fax, described as a suicide note to friends and family,
Flanagan says he became angered after the Charleston church
killings and praised Virginia Tech shooter SeungHui Cho as
my boy.
Flanagan, who was raised as a Jehovahs Witness in California, also said Jehovah made him act.
Why did I do it? I put down a deposit for a gun on 6/19/15. The
church shooting in Charleston happened on 6/17/15.
What sent me over the top was the church shooting. And my
hollow point bullets have the victims initials on them.
As for Dylann Roof? You want a race war ? bring it
then, you white !!!

Islamic Terrorists Enter United States Through Mexico

Daryle Hochstetler | August 26

matthew busch/getty images

uslim terrorists are entering Texas with the assistance of Mexican drug cartels, according to a July 30 report
from Judicial Watch.
According to the report, drug cartels smuggle Special Interest Aliens into stash areas around Acala, Texas, approximately
50 miles from El Paso on Highway 20. Terrorists then wait
there until they receive orders to disperse into other American
regions.
An internal Texas Department of Public Safety report documented that several members of known Islamist terrorist organizations have been apprehended crossing the southern border

Traffic backs up along the route to the border crossing

from Mexico to the U.S. in Laredo, Texas.

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Trumpet Weekly | August 28, 2015

 On Sept. 25, 2014, a sharia advocate beheaded a woman in

Moore, Oklahoma.
In 2014, four other Muslim-related attacks killed six people.
In 2013, at least five Muslim-related attacks, including the
Boston Marathon bombing, killed eight and wounded over
260.
All in all, the blog Religion of Peace has recorded 75 Muslim-related terrorist attacks that killed 3,106 Americans on U.S.
soil.
To learn more about why Americans should be concerned
with the rising number of Muslim terrorists in America, read
Fables About Islam and Destroying America From Within.

in recent years.
As the influence of Mexican drug cartels over the El Paso
region started insignificantly, so the influx of Muslim terrorists
is beginning marginally. Retired Navy seal and former fbi agent
Jonathan Gilliam stated, [Terrorists arrival in the United
States] probably means thats not the first time theyve gotten
people in this way. And its really scary when you think about it.
His fears are well founded.
In recent years, an increasing number of Muslim terrorist
attacks have occurred in America. Here are a few examples:
On July 16, a devout Muslim staged a suicide attack in Chattanooga, Tennessee, at two different military centers, leaving
at least five dead.

The Return of National Fences

Brad Macdonald | August 28
WE TALKED ABOUT THIS

attila kisbenedek/afp/getty images

ences are making a major comeback in America, Europe,

Asia and the rest of the globe. Some, like Donald Trumps proposed fence along the United States-Mexico border, are literal.
Others, like Chinas currency manipulation, are figurative. But
they all serve a common purpose: preserving national interests
and deterring domestic threats.
These fences evidence a major global trend: the rise of nationalism. They manifest a growing shift away from globalization,
and toward self-interest. Nations are focusing more on protecting their own economies, their own manufacturing industries,
their own people and their own culturesbecause of uncertain
and unstable global socioeconomic conditions.

A migrant group walks between the railroad tracks

near Roszke village of the Hungarian-Serbian border on August 27.

The Case for Globalization

Nationalism and globalization are mutually exclusive trends.
Both cannot exist at the same time. Todays trends indicate that
nationalism is coming up on top.
But that hasnt always been the case.
International Institute for Management Development Prof.
Carlos A. Primo Braga wrote for the World Economic Forum: As
bad news is mounting concerning the health of the world trade
system, one has to wonder: Have we reached a peak in the globalization process? Is there still an appetite to continue to promote
international integration via the expansion of trade? Or have
the tides changed so that we are going to witness a retreat from
globalization in parallel with the observed slowdown of international trade?
Professor Braga listed a series of multilateral trade agreements that are bogging down and even failing. The faltering
global economy is compelling countries to work harder to protect
and advance their own trade interests. Consider the trends in the
following regions and nations.

crisis sweeping Europe has led a number of countries to tighten

their borders, something at the expense of international obligations to respect right of refugees .
Hungary is building a 110-mile, 13-foot-high fence along its
border with Serbia. Hungary has been receiving tens of thousands of migrants from the Middle East and North Africa. The
nation is overwhelmed by them, and it feels the need to act to protect itself.
Bulgaria has a 50-mile-long steel fence along its border with
Turkey. Its adding another 10 to 15 miles lined with razor wire
and monitored by armed security guards.
Macedonia is also facing a similar migrant crisis. More than
3,000 migrants cross into Macedonia every day.
Across Europe in recent years we have seen a drastic increase
in the popularity of nationalist political parties. Some of these
parties espouse some pretty extreme views; some support
Nazism; some want to confront Islam and get rid of Muslims;
some want to toss out the migrants. But they all want to protect
and further the national interests of their countries.

Europe
The 21st century was supposed to be a time for European openness and cooperation, but increasingly countries are turning to
an age-old tactic to isolate themselves: Theyre building [fences]
along their borders, noted Vocactiv on August 25. The refugee

Russia
Russian President Vladimir Putin invaded Ukraine and annexed
Crimeaall in an effort to augment and expand the Russian
nation. Most recently, Putin has embarked upon a nationwide
purge of food imported from certain foreign nations, mainly

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Trumpet Weekly | August 28, 2015

European nations. Last year, Putin put an embargo on food

imported from Western nations.
The country is transforming into a nationalist fortress, yet
many Western leaders are apparently content to ignore the
potentially dangerous implications.

despises the European Union because it is destroying Britains

laws, values, culture and lifestyle. Hes deeply concerned about
immigration for exactly the same reason.
Farage wants to make Britain great again! And his popularity
shows that there are a lot of people who agree with him.

China
The National Interest wrote, on August 3: After a decade of
reaping the benefits of a soft-power offensive, Chinas peaceful rise took an abrupt turn in the late 2000s. The country that
emerged from a unique confluence of events beginning in 2008
has proven a more assertive, authoritarian and nationalistic
rising power.
Beijing is literally building islands in the South China Sea. It
is expanding its military and parading its weapons before the
world. In recent weeks, China devalued its currency by at least 3
percent to invigorate its manufacturing industry and export market. A cheaper yuan makes Chinese goods cheaper.
American authorities thought Beijing would be so intertwined
with the global order that it wouldnt do anything to destabilize
that order, as doing so would only hurt its own interests. But they
were wrong!
Some people are starting to realize that globalization is not
making the world safer, and its certainly not improving relations
with China. China is taking care of self!
Britain
In Britain, Nigel Farage and the United Kingdom Independence
Party remain popular despite setbacks in national elections earlier this year. Farage believes in a strong, independent Britain. He

America
Donald Trump, the front-runner in the race to become the Republican nominee for president, is Americas version of Nigel Farage.
Like Farage, Trump is candid, brave and totally fearless. He
doesnt worry too much about political correctness. He doesnt
mind offending other nations or peoples.
Trumps message has a distinct nationalist tone to it. His campaign slogan is Make America great again! The central question
for Trump on almost every issue is: What is best for America?
Like some nations in Europe, Donald Trump wants to build a
fence toothe great wall of Mexico that will be 2,000 miles long.
When he talks about China, or Mexico, or Japan, he uses terms
like competitors and opponents.
Nationalist sentiment is increasing across the planet.
The more extreme that economic conditions become, the
harder that nations will work to take care of their own.
If this nationalist trend continues, there will be more tensions, more rivalries, more disputes, more conflicts and, ultimately, more wars between countries and regions. As conditions
worsenespecially with the global economyexpect less cooperation, less collaboration and more tension and conflict!
Follow Brad Macdonald

OTHER NEWS
Scientists Replicated 100 Recent Psychology Experiments: More Than Half of Them Failed
Vox | August 27
WE TALKED ABOUT THIS

applauded the effort: Because the authors worked with the original researchers and repeated the experiments, the paper is an
example of the gold standard of replication.
But Stanfords John Ioannidis, who famously penned a paper
arguing that most published research findings are wrong,
explained that exactly because its the gold standard, the results
might be a little too generous; in reality, the replication failure
rate might be even higher.
I say this because the 100 assessed studies were all published in the best journals, so one would expect the quality of the
research and the false rates to be higher if studies from all journals were assessed, he said.
The 100 studies replicated ended up excluding some 50 others
for which the replication was thought to be too difficult. Among
those that did get attempted, difficult, challenging replication
was a strong predictor of replication failure, so the failure rates
might have been even higher in the 50 or so papers that no one
dared to replicate, Ioannidis said.

eplication is one of the foundational ideas behind science. Its when researchers take older studies and reproduce
them to see if the findings hold up.
Testing, validating, retesting: Its all part of the slow and grinding process to arrive at some semblance of scientific truth.
Yet it seems that way too often, when we hear about researchers trying to replicate studies, they simply flop or flounder. Some
have even called this a crisis of irreproducibility.
Consider the newest evidence: a landmark study published
today in the journal Science. More than 270 researchers from
around the world came together to replicate 100 recent findings from top psychology journals. By one measure, only 36 percent showed results that were consistent with the original findings. In other words, many more than half of the replications
failed.
The results are more or less consistent with what weve seen
in other fields, said Ivan Oransky, one of the founders of the blog
Retraction Watch, which tracks scientific retractions. Still, he

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Trumpet Weekly | August 28, 2015