US To Move 150 Tanks To Europe In Response To Ukraine Crisis

   (IBT) --- The U.S. will move 150 tanks to Europe for training American troops there as a response to the continuing crisis in Ukraine, according to Reuters. An unspecified quantity could be placed in Poland, Romania or the Baltic states – Latvia, Estonia and Lithuania -- seemingly to shore up NATO’s defensive capabilities against the Russian Federation, which NATO accused of directly fostering the conflict between the military and pro-Russian separatists in Ukraine.

   Lt. Gen. Ben Hodges, commanding general of the U.S. Army Europe, called the initiative “operation Atlantic Resolve” and said it would allow the U.S. to defend NATO border states at a moment’s notice. At least a third of the new force will remain at training bases in Germany, he said.

   NATO, which is made up of European countries, Canada and the U.S., already has moved military assets like F-16 fighter jets to the Baltic countries at their request over their growing concerns about Russia. The U.S. Army Europe, which is separate from NATO, has around 29,000 personnel in its ranks. In total, NATO has around 3.3 million soldiers on active duty, according to the Council on Foreign Relations.

   Hodges said soon after taking control of the U.S. Army Europe in November that the U.S. and its allies “face a resurgent Russia that has illegally annexed Crimea and which threatens our friends and allies.”

   Russia plans to answer right back: This month, the Russian Security Council deemed NATO the country’s biggest threat in a military doctrine that set the stage for a major upgrade to Russia’s military in 2015. Part of that upgrade will be to its nuclear forces equipment and will go toward expanding its capabilities in the Arctic, where vast energy reserves lie, according to Agence France-Presse. Russian leaders strongly opposed any troop movement near its borders and has answered with troop buildups and exercises this year.

   Since the escalation in Ukraine from peaceful protests in favor of moving toward the European Union to all-out territorial war in spring of this year, Russia has run dozens of missions with its aircraft near its NATO neighbours and even near U.S. airspace.

Estonia again accuses Russia of violating its airspace

   The main headquarters of the Estonian Defense Forces has accused Russia of violating the air borders of the Baltic state, Russian news agency RIA Novosti reported on Monday.

Photo from airwar.ru

   According to a report by the Estonian military, on December 25 the country's airspace was violated by a Russian AN-72 reconnaissance aircraft.

   "On December 25, the plane crossed into Estonian airspace near Vaindloo Island to a distance of 1.2 nautical miles and stayed [inside the air border] for about a minute. The aircraft’s transponder was turned on, and a flight plan was provided in advance," the report reads.

   "[But] according to the flight plan, the AN-72 was supposed to fly [only] in international airspace," the headquarters says.

   Estonian media say that the Estonian Foreign Ministry intends to present a note of protest to the Russian ambassador due to this airspace violation.

   The Russian Defense Ministry has confirmed that it made the flight, but denied the plane had violated the Estonian border.

   "On December 25, an AN-72 military transport aircraft of the Russian Ministry of Defense made a scheduled flight from St. Petersburg to Kaliningrad region. The flight passed on a specified route over neutral waters of the Baltic Sea in strict accordance with international rules, without violating the airspace boundaries of Estonia or other countries," the ministry said in a statement.

China is highlighting its new weapons systems

Prototype of China's J-20 long-range strike fighter. Image by Baiweiflight

  MANILA, Dec. 29 (UPI) -- China's military is touting its introduction of new weapons platforms in 2014 and says that having done so publicly underlines its commitment to transparency.

   The new platforms comprise air, sea and land assets, including a stealth jet fighter, destroyers and a main battle tank.

   "A series of 'big moves' have stunned all people with the fact that China had made rapid progress in upgrading weapons and equipment and also greatly increased its military transparency," said China Military Online, a news site .

   "In recent years, the openness of China's military has received tremendous positive comments from home and abroad. On April 7 this year, U.S. Defense Secretary Chuck Hagel boarded the Liaoning ship during his first China visit in Qingdao.

   "Ni Lexiong, a Shanghai-based military expert, pointed out that 'This is a symbol of frankness that China has nothing to hide,'" the site said.

   China Military Online – an official website – says it is sponsored by the PLA daily (newspaper)" of the Chinese People's Liberation Army.

   According to available figures, China is one of the world's top five exporters of weaponry and spent about $171 billion on defense in 2013.

   Its growing naval capability is of concern to the United States, which has strategic interests in Asia, and to countries in the region that are in sovereignty disputes with China over small islands and reefs in the South China Sea and the disputed areas' natural resources.

   Those countries include the Philippines, Vietnam, Indonesia and Taiwan.

   China says it added 10 new vessels to the PLA Navy last year. Among them are guided missile destroyers and frigates and minesweepers such as the Qingzhou.

   "The number of new warships that are put into service annually in China has overtaken the U.S. and has become the first in the world," China Military Online said. Hou Xiaohe, Air Force colonel and the associate professor of the strategic Research department of the National Defense University of the PLA said in an interview that the rapid development of the PLA Navy's weaponry reflects the will of China for construction of marine power.

   "In addition, the Chinese military has a more onerous task to protect the maritime interests and overseas interests, which requires China to accelerate the pace of construction and forge a strong navy."

   The PLA Air Force, meanwhile, debuted its prototype Y-20 and the J-31 at an international air show in China.

   The Y-20 is a four-engine jet airlifter with a 145,000-pound payload capacity. With maximum payload, it can travel more than 2,700 miles.

   The J-31, said to be designed as a competitor to Lockheed Martin's F-35, is a fourth-generation fighter that is still undergoing development testing.

   Also introduced was the J-20, a long-range strike fighter with stealth capabilities, which is expected to be ready for operational service in 2017.

   Other items unveiled included a modified T-99 main battle tank, YJ-12 and YJ-100 anti-ship guided missiles. 

Soviet Styled 'Nuke Trains' Will Be Roving the Russian Rails By 2018

   Banned under the previous STARTII treaty, but not excluded in 2011's New START treaty, Russia is pulling from its Soviet strategic playbook and reviving the intercontinental ballistic missile toting, hiding in plain sight, 'Nuke Train' concept.

   Sounding more like a set-piece from a James Bond movie, this new and improved Nuke Train will be carrying even more terrifying cargo than its Soviet predecessors. The Combat Railway Missile Complex (as the Russians call it) is somewhat akin to a ground-based nuclear ballistic missile submarine, although it is much less expensive to operate. Its constantly moving nature and 'hiding in plain sight' camouflage represents a survivable, hard to target, land-based nuclear second strike deterrent. The idea is that a portion of the Combat Railway Missile Complex fleet will roam the countryside at any given time, operating among similar looking passenger and cargo trains, thus making continuous satellite tracking by Western powers extremely difficult.

   This new railway based missile platform is said to be named 'Barguzin' after the strong eastern wind that blows off Lake Baikal. Russian news site RT reports that like its 12 Soviet-era Nuke Train predecessors, which were removed from service in 1993, Barguzin will also have its cars disguised as standard commercial refrigeration cars, although they will not need heavy steel reinforced wheels like past units. This is due to the fact that the new RS-24 'Yars' ICBM these trains will carry weighs half the weight of the RT-23 'Molodets'

ICBM carried on Soviet-era Nuke Trains. Without the tell-tale reinforced running gear, the fact that these ICBM toting train cars will look exactly like normal refrigeration cars will make them nearly impossible to track, even by informants on the ground.

   Each of these new Railway Missile Complexes will hold six RS-24s, which are each capable of carrying four Multiple Independently Targeted Reentry Vehicles (MIRVs). This means that each train, of which five are currently planned, could hold 24 thermonuclear warheads, each able to take out a town of its own. That is a lot of apocalyptic firepower roving around the countryside on train tracks.

   The RS-24 in particular is not Russia's most powerful ICBM, even the RT-23 'Molodets' that it replaces in the Nuke Train ICBM role carried over double the MIRVs, each with larger explosive yield options. Yet, for what the RS-24 lacks in punch it makes up for in accuracy and survivability. It speeds to its target at over mach 20, making it one of the fastest ICBMs in the world, this means that quicker reaction times are required when dealing with an RS-24 launch. In the end this equates into less enemy assets being dispersed once the RS-24's warheads hit their targets and less time for the enemy, in this case the US, to deploy its ballistic missile defenses.

   The RS-24 also has a shorter infrared launch 'footprint,' making it harder to detect and track by space-Russia's most advanced decoy systems aimed at fooling America's anti-ballistic missile systems and is rumored to be equipped with a highly-maneuverable post-boost vehicle. The RS-24's MIRVs are said to have a circular error probability of just 150 feet after flying some 7,500 miles to their target, making it very accurate ICBM, especially by Russian standards.

based infrared early-warning satellites. The Yars also possess

   Russia's renewed interest in Nuke Trains is said to be a response to America's Conventional Prompt Global Strike project, which looks towards a cocktail of hypersonic air-breathing missiles and aircraft as well as possibly ballistic missiles, and even space-based weaponry, to hit a target within an hour, anywhere on globe. This new requirement, which has produced nothing operational in the 'white world' as of yet, has been deemed a threat to road-mobile transporter-erector-launcher based ICBMs, which have to expose themselves for launch. A Nuke Train masquerading perfectly as a commercial train would be much harder to detect and can literally hide in plain sight, only transforming moments before launch.

2015 Predictions: World War 3 Could Be Inevitable As Russia Leads World Into New Kind Of Conflict

   (The Inquisitr) --- Predictions for 2015 point to the possibility of World War 3 as tensions between Russia and neighbouring countries — as well as the United States — appear to be reaching a boiling point.

   In the past several months, Russia has taken an ultra-aggressive stance toward neighboring countries, sending troops into Ukraine to support pro-Russia rebels, conducting nuclear exercises, and sending dozens of airplanes toward neighboring airspaces in an attempt to test NATO defenses.

   Now some experts predict that the tensions could eventually turn into World War 3 in the coming year, though it may look drastically different from the first two World Wars.

   Dr. Philippa Malmgren, a former presidential adviser and member of the U.S. President’s Working Group on Financial Markets, said in an interview with King World News that the United States could enter a large-scale conflict that utilizes a heavy focus on the use of technology.

   Malmgren said the recent military activity by Russia may have been part of this new conflict.

   “The United States, Russia, and China are all vying for dominance over high-altitude satellites, which dominate all the guidance and communications systems for the conduct of warfare. And increasingly (we are seeing) stealthy methods of conducting conflict.

   “For example, the Russians have been very active recently in showing their dominance in the Baltic Sea, which dictates who dominants Scandinavia and the Baltic countries. And in doing that, it’s not that they have so many ships or better quality ships, it’s how effectively they’ve been able to show they can take territory if they want to.

   “The Danes released a report showing that during the largest naval exercise held last summer by the Russians, since the Soviet period, in part what they were doing was practicing taking and seizing an island in the Baltic which currently belongs to Denmark. And it was so interesting they (Russia) picked the very week that the Danes held the equivalent of Davos — the meeting where every single political leader in that nation happens to be on that island at that time.

   But other 2015 predictions point toward a real World War 3, with Ukraine being the flash point. The long-simmering conflict does not appear to be reaching a solution, which was highlighted this week when peace talks were called off. Ukrainian officials have accused Russia of threatening to use nuclear weapons if the conflict were to drag on too long.

Russia imposes rationing in token gesture

  Saint Petersburg (AFP) --- Just when Russians thought it could not get any worse with the ruble tumbling as fast as the oil prices on which their economy depends, the people of St Petersburg are waking up to rationing.

   But in President Vladimir Putin's hometown, the martyr city that survived a nearly 900-day siege in which thousands starved to death in World War II, it is not food and drink that is being rationed, but metro tokens.

   In one of the most bizarre episodes of panic buying in a nation notorious for its hoarding instincts in times of trouble, people have been buying up to 85,000 extra metro tokens a day so they can save three rubles (five cents) when the price goes up on January 1.

   With more than 1.8 million sold so far in December the authorities had to step in and ban cashiers from selling people more than two tokens at a time.

   Signs of panic buying have emerged in recent weeks with many hard-pressed households hoarding sugar and buckwheat, one of the country's main staples, as the ruble at one point lost one quarter of its value in just two days.

   Worried about rising inflation and the real value of their wages and savings plummeting, poorer Russians have been stockpiling goods they think will hold their value.

   "I get the feeling people are investing in metro tokens," joked one passenger in front of the ticket desk at Prospekt Veteranov station.

   Normally only around 15,000 metro tokens a day are sold in Russia's second city, but as the ruble crisis worsened, that increased to between 80,000 and 100,000 a day.

   The price of the tokens are set to rise from 28 roubles (45 euro cents) to 31 roubles (50 cents) on January 1.

   Russia's monetary crisis -- the worst in President Vladimir Putin's 15 years in power -- was sparked by the fall in the price of oil, and worsened by Western sanctions over Ukraine.

   The ruble has lost about 40 percent of its value against the dollar and euro this year.

Russia’s military doctrine blames NATO to justify Imperial Adventurism in Ukraine.

   (Reuters) --- Russian President Vladimir Putin has signed a new military doctrine, naming NATO expansion among key external risks, the Kremlin said on Friday, days after Ukraine made fresh steps to join the Atlantic military alliance.

   Moscow's previous military doctrine, signed by Putin in 2010, also identified NATO expansion as a top risk to Russia, but the stakes have risen sharply over the past year.

   Russia said this week NATO was turning Ukraine into a "frontline of confrontation" and threatened to sever remaining ties if Ukraine's hopes of joining NATO were realised. 

   The Kiev parliament's renunciation of Ukraine's neutral status on Tuesday in pursuit of NATO membership has outraged Moscow and deepened the worst confrontation between Russia and the West since the end of the Cold War after Russia's annexation of Ukraine's Crimea peninsula this year.

   NATO has already boosted its military presence in eastern Europe this year, saying it has evidence that Russia orchestrated and armed a pro-Russian rebellion in eastern Ukraine that followed the overthrow of a Kremlin-backed president in Kiev.

   Moscow denies supporting the rebellion, and is currently trying, along with Kiev and the rebels, to renew efforts to find a political solution to the crisis in eastern Ukraine.

   It is likely to take years for Ukraine to meet the technical criteria for accession to NATO and, even then, there is no certainty that the alliance is ready to take such a decision.

   A NATO official said on Friday the alliance respected the move by Ukraine's parliament, and so should Russia.

   "Should Ukraine decide to apply for NATO membership, NATO will assess its readiness to join the Alliance in the same way as with any candidate. This is an issue between NATO and the individual countries aspiring to membership."

UBS Raises Flag on China’s $1 Trillion Overseas Debt Pile

   (Bloomberg) --- UBS Group AG is flagging risks from China's $1 trillion worth of unhedged foreign debt as forecasters see bets against the greenback unwinding in 2015.

   The world's second-largest economy is exposed to shifts in currency and interest rates as never before because of expanding international trade and easing foreign-exchange regulations, said Stephen Andrews, head of Asia banks research in Hong Kong at UBS. Daiwa Capital Markets has a $1 trillion estimate for carry-trade inflows since 2008, bets on the difference between yields in China and overseas. It sees a 5.7 percent drop in the yuan next year.

   The renminbi is heading for a 2.8 percent loss in 2014 as the dollar gains on Federal Reserve plans to raise interest rates and the People's Bank of China cuts borrowing costs to support a flagging economy. Capital controls and record foreign-exchange reserves will help the PBOC cope with any similar situation to 1997's Asian financial crisis, when firms struggled to repay debt as currencies slumped, Andrews said.

   "This could get very uncomfortable very quickly," he said in a Dec. 12 interview. "I boil it down to its basics. You've borrowed unhedged and leveraged: you're at risk."

   Andrews says the mechanics of what's happening are this: mainland companies deposit 20 percent to get a letter of credit from an onshore lender. They take that document to get a low-interest dollar loan from a Hong Kong bank, which treats it like a no-risk check fully backed by the guarantor.

Leveraging Up

   The companies flip those dollars back to the mainland, where they use them as collateral to get even more letters of credit, leveraging even further, said Andrews. That money is then used to invest in China's high-yield and often risky trust products or in the booming stock market. The profits are then used to pay off dollar borrowings.

   Hong Kong banks mainland-related lending stood at HK$3.06 trillion ($394 billion) at the end of September, 14.7 percent of total assets, according to the city's monetary authority. Andrews said his estimate is higher as he includes trade bills and other forms of lending not captured by the data, such as between sister companies in intergroup corporate transfers or letters of credit between onshore and offshore bank branches.

   "There were too many cheap dollars in the market for everyone to borrow," Kevin Lai, an economist at Daiwa in Hong Kong, said Dec. 16. "If you just put the money in China, the carry plus appreciation is about 5 percent, so why not, right?"

   Lai estimates $1 trillion of carry-trade inflows since the first round of U.S. quantitative easing in 2008, of which $380 billion entered China disguised as commerce flows.

Carry Trades

   Global markets became flooded with cash after the Fed started the bond-purchase program. Meanwhile, steady growth and tighter monetary conditions pushed up yields in China, widening their premium to similar U.S. securities. The gap between 10-year Chinese and U.S. sovereign yields rose to a record 235 basis points in 2011. It has since shrunk to 140 basis points.

   Chinese companies issued a record $5.4 billion of bonds offshore that were supported by standby letters of credit from national banks this year, according to data compiled by Bloomberg. The 18 securities compare with only four last year and two before 2013 in data going back to 1999. They sold a total of $224.8 billion of notes offshore in 2014.

Limited Similarities

   Andrews says the similarities between pre-Asian financial crisis Thailand and China today are limited. The amount involved is still small relative to China's $9.2 trillion gross domestic product. The nation's overall loan to deposit ratio is healthy and China has foreign-exchange reserves that peaked at $4 trillion in June, he said.

   Chen Long, Beijing-based China economist at research consultancy Gavekal Dragonomics, said China's overseas debt has been growing in line with the economy and banks are healthy enough to absorb any changes in interest rates or currencies.

   "The renminbi is controlled by the People's Bank of China and no one has enough resources to bet against the PBOC's foreign-exchange reserves," he said.

   The yuan has dropped to 6.2280 a dollar as of 10:11 a.m. in Shanghai today, its first annual loss since 2009, as monetary policies in the world's two largest economies diverge. A month after faster jobs growth allowed the Fed to end its record stimulus in October, paving the way for an expected rate increase next year, China lowered loan rates for the first time since 2012. The Bloomberg Dollar Spot Index has advanced 11 percent in 2014.

   Carry trades may become less active next year, reversing the trend of inflows, Hao Hong, head of China research at Bocom International Holdings Co., wrote in Dec. 17 note.

Fake Trade

   While China had a trade surplus of $57.47 billion in November, export growth slowed to 4.7 percent due to a government crackdown on fake invoicing. Shipments to Hong Kong grew 1 percent, compared with surges of 24 percent and 34 percent in October and September. Currency reserves declined to $3.89 trillion at the end of the third quarter.

   "For many years China offered high yields, absorbing a lot of dollar liquidity," Daiwa's Lai said. "Much of the supposedly healthy trade surplus is fake, just short-term speculative carry-trade inflows. When the money leaves, the impact may be huge."

   While lending to Chinese firms with letters of credit shields the city's banks from corporate risks, this has left them exposed to China's financial system, said Sabine Bauer, an analyst at Fitch Ratings Ltd. in Hong Kong. China's bad loans jumped by the most since 2005 in the third quarter.

   "If there are problems in the Chinese banking system, either real or perceived, that could spill over to the Hong Kong banks and their liquidity may tighten as well," Bauer said. 

Russia Ups Gold Reserves for 8th Month While Ukraine Slashes

   (IBT) --- Russia and Ukraine, tangled in a squabble over Crimea, have made some movements in their respective gold reserves. Data released on Tuesday by the International Monetary Fund revealed Russia boosted its gold reserves for the eighth month now in a row, while Ukraine slashed its bullion holdings for a second straight month.

   As of November, Russia's gold holdings jumped by 18.753 tonnes to a total of 1,187.493 tonnes. Russia is the world's fifth-largest holder of bullion reserves. Ukraine, on the other hand, slashed by 2.488 tonnes its reserves, which are now only at 23.639 tonnes in November. It had actually divested 14-tonnes in October.

   Russia's gold acquisition was fuelled mainly its prevailing economic difficulties arising from the sanctions slapped by the western nations. Ukraine's central bank said its gold divestments were needed to optimise the composition of its international reserves.

   "The country's financial situation has been under pressure," Steven Dooley, a currency strategist for the Asia Pacific region at Western Union Business Solutions, told Bloomberg. "Its currency has been under pressure as well. Ukraine is definitely a small player. We really haven't seen any large impact on the gold market," he said.

   Russia's gold buying comes after the World Gold Council early in December revealed the country had divested some of its precious safe have yellow metal gold to help keep the economy afloat. Portal Vesti Finance said the central bank divested some of the country's gold holdings "in order to maintain the exchange rate." 

   The WGC believed it was the first time Russia divested its gold holdings. The central bank had been consistent in adding gold to its reserves. In fact, from July to October alone, it purchased an equivalent 74 tonnes of gold from the domestic market. Russia was buying cheaper gold as a safe measure "for the possibility of a long-lasting economic war."

   Vesti Finance said the central bank divested some of the country's gold holdings "in order to maintain the exchange rate."

New alliance between Russia and 4-ex-Soviet nations finalized

   MOSCOW (AP) — Russia and four other ex-Soviet nations on Tuesday completed the creation of a new economic alliance intended to bolster their integration, but the ambitious grouping immediately showed signs of fracture as the leader of Belarus sharply criticized Moscow.

   The Eurasian Economic Union, which includes Russia, Belarus, Kazakhstan, Armenia and Kyrgyzstan, comes to existence on Jan. 1. In addition to free trade, it's to coordinate the members' financial systems and regulate their industrial and agricultural policies along with labor markets and transportation networks.

   Russia had tried to encourage Ukraine to join, but its former pro-Moscow president was ousted in February following months of protests. Russia then annexed Ukraine's Black Sea Crimean Peninsula, and a pro-Russia mutiny has engulfed eastern Ukraine.

   Russian President Vladimir Putin said that the new union will have a combined economic output of $4.5 trillion and bring together 170 million people.

   "The Eurasian integration is based on mutual benefit and taking into account mutual interests," he said after the talks.

   But Belarus' President Alexander Lukashenko cracked the ceremonial veneer of the meeting by launching a harsh attack on Moscow for damaging Belarus' economic interests with moves to restrict its exports to Russia.

   Belarus, sandwiched between Russia and European Union members Poland and Lithuania, has profited handsomely from Moscow's ban on imports of EU food in retaliation to Western sanctions against Russia by boosting imports of food from the EU nations and reselling it to Russia.

   The Russian authorities have retaliated by halting imports of Belarus' own milk and meat, citing alleged sanitary reasons, and banning transit of Belarusian food bound for Kazakhstan through its territory on suspicion that much of it ended up in Russia.

   "In violation of all international norms, we have faced a ban on transit," Lukashenko said. "It was done in a unilateral way and without any consultations."

China's leader is telling the People's Liberation Army to prepare for war

   (The Week) --- Chinese President Xi Jinping's recent statements have been alarming China's neighbors. What's behind them?

   Over the last several months, Chinese leader Xi Jinping and the Chinese Communist Party have repeatedly exhorted the People's Liberation Army to "be ready to win a war." Xi has repeatedly called for greater military modernization, increased training, and enhanced overall readiness of the Chinese army, navy, and air force.

   These repeated calls have alarmed China's neighbors from New Delhi to Washington. The question on everyone's mind: what is all this preparation for?

   Is the Chinese leadership preparing for something? Are they gearing up for a military operation, or merely the option to carry one out? Or is there a more innocent explanation for all of this?

   One credible explanation is that the Chinese leadership is pushing military readiness as part of the ongoing, national anti-corruption drive. Military anti-corruption efforts have been highlighted by the arrest and imminent court martial of Xu Caihou, a former high level military officer. Xu faces charges of embezzlement, bribery, misuse of state funds, and abuse of power, and is thought to have made at least $5.9 million by selling officer promotions.

   Corruption in the Chinese military is thought to be widespread. Although the true effects are not known, it has resulted in ineligible officers being promoted, diversion of state funds, and sweetheart deals between military contractors and officials. Perhaps most importantly, time spent by corrupt officials making money is time not spent training the troops for conflict.

   Although the Communist Party's message to "prepare to win a war" may seem bellicose, the government may simply be telling the military to stop making money on the side and just do their jobs.

   Another possibility is that Xi and the Party are pushing for the Chinese military to adopt readiness levels on par with the Pentagon. The U.S. military, which is frequently deployed around the world, often on short notice, trains to a relatively high standard. Much of a typical deployment, such as operating planes from an aircraft carrier flight deck, is dangerous work that can only be safely accomplished by training to high level of proficiency.

   It's quite possible that China wants the military to achieve this skill level too, for no other reason than to have it. This on the face of it does not imply aggressive intent, only a desire for a prepared military.

   Of course, it's possible that the Chinese government has something more sinister in mind.

   The Party may desire the ability to conduct military action overseas as a diversion from domestic issues. In recent years, China has used territorial claims in the East and South China Seas and the Taiwan issue to divert public attention from problems at home, even going so far as to organize protests. Political grievances, environmental pollution, food scandals, government land grabs, lack of affordable healthcare, and, most importantly, government corruption are all issues that have sparked civil unrest.

   As the Chinese economy slows down, the Communist Party may be worried that decreased economic activity could lead to more domestic unhappiness. A military expedition that united the country behind the government could be an option they'd consider.

   In 1982, the generals that ruled Argentina invaded the nearby Falkland Islands, a United Kingdom territory, in a bid to co-opt anti-government dissent. The junta ruling the country believed that invading the Falklands, regarded by Argentines across the political spectrum as belonging to their country, would rally the country around the government.

   Unfortunately for the generals, military adventurism is a two-edged sword. The U.K. sent a naval task force to retake the Falklands and Argentina's ensuing defeat proved the downfall of the regime.

   Thanks to its recent territorial spats, China has a wealth of option for adventurism, such as sending naval vessels to the Diaoyu Islands (known as Senkaku Islands to Japan) in the East China Sea, making a demonstration of force near Taiwan, or even picking a fight with smaller countries such as the Philippines. Well-trained armed forces are necessary even in operations short of war; a show of force can quickly become a demonstration of incompetence.

   We don't really know what is pushing Xi and company's seemingly bellicose exhortations. Much of the decision-making taking place in the Chinese military is a black box opaque to the outside world. Maybe China is preparing for something. Maybe it isn't. Maybe they're preparing for something and even they don't know what it is.

   Or maybe they're just telling their people to do their jobs.

Russia growls as Lithuania readies for euro

   KYBARTAI, Lithuania (Reuters) --- Geopolitics plague Lithuanians at this frozen Russian border post, where a return trip by car can mean 48 hours of queuing. It is a reminder for some of why the former Soviet republic will cement its move to the West by joining the euro zone next month.

   Tensions with Moscow have simmered ever since Lithuania became the first republic to declare independence from the Soviet Union in 1990, although only 6 percent of the population are Russian speakers, far fewer than in its Baltic neighbours.

   On Jan. 1, it will be the last of the Baltic states to join the currency bloc, hoping like Estonia and Latvia for more investment and lower borrowing costs to spur one of Europe’s poorest but fastest-growing economies.

   All three have felt the blowback from East-West tension over Russia's encroachment into Ukraine this year in the form of Russian sanctions and military grandstanding on their borders.

   When Lithuanian President Dalia Grybauskaite announced military aid for Ukraine last month, accusing Moscow of being a "terrorist country", Russia launched a go-slow on the border with its Kaliningrad enclave – home to Russia's Baltic sea fleet and, most Lithuanians suspect, tactical nuclear weapons.

   The number of private Lithuanian cars crossing over plunged tenfold. "Before it only took a couple of hours," said unemployed Lionius Medelis, one of just three drivers huddled in the cold in the hope of buying cheap gasoline in Kaliningrad. "It's terrible what's happening here."

   The move to the euro coincides with steps towards greater energy independence and requests for more NATO troops in Lithuania, marking a new shift away from Moscow. But half those polled in this state of three million do not welcome the euro.

   "It is all a horror movie," elderly Laima Krecikiene said outside a supermarket by the border. "Don't you understand? Can you imagine how little money people in the villages have? Just look at the prices, they shot up in anticipation of the euro."

   Market reforms and wider economic crisis have been tough for Lithuanians, driving many to emigrate. But few oppose its shift towards the West.

   Russia’s move into Ukraine has awoken fears the Baltics could be next. NATO has scrambled its jets over 150 times this year after Russian sorties, three times more than last year. Moscow held surprise military exercises in Kaliningrad in December with 9,000 troops and 55 ships.

   Russian sanctions have hit Lithuania's transport sector, which employs around 100,000, as well as its dairy industry.

   While the aim may be to bring the country back into Moscow's orbit, analysts say it is having the opposite effect, focusing business minds on the west and emerging markets like Asia.

   "I think Russians are trying to educate us how to behave," said Gitanas Nauseda, chief economist as SEB bank in Lithuania. "But among executives the mentality of having Russia in your strategic plan is disappearing."

VOCAL

   With Russia still accounting for some 20 percent of exports compared with 60 percent going elsewhere in the European Union, the government, which has been among the most vocal in Europe in denouncing Russia, says there is some way to go.

   Prime Minister Algirdas Butkevicius said some businesses still did not appreciate the risks of dealing with Russia.

   "It's better to work with less risky markets, make use of having a stable currency like the euro in Lithuania, have lower profits but long-term stability in business," he told Reuters.

   A big step came in October when "Independence", a floating liquefied natural gas import terminal, arrived under heavy guard in Lithuania, marking the end of the Baltic state's reliance on Russian gas by allowing it to import from countries like Norway as well.

   While a Russian crisis could upset forecasts, the central bank says euro zone membership could add 1.3 percent to GDP in the long term.

   The economy is expected to grow 2.9 percent this year. Massive public spending cuts coupled with economic crisis saw Lithuanian GDP shrink by 15 percent in 2009, a drop that took until 2014 to recover. Around a tenth of the population has emigrated, half since the crisis.

   Now Lithuania seems healthier than many EU economies, but central bank head Vitas Vasiliauskas said it could not relax. "The euro gives you a lot of opportunities. At the same time you must move forward with reforms," he said in an interview.

   Deeper problems include creaking education and health systems and the brain drain, and even businesspeople are skeptical about the benefits of joining the euro.

   Visvaldas Matijosaitis, CEO of Viciunai Group, producer of frozen products that exports to 56 countries and employs 7,500 people, complained of a shortage of skilled labor - his company is forced to bus in workers from 100 km (60 miles) away.

   "Productivity is not what it is in the West," Matijosaitis said, as lines of women filleted fish by hand nearby. "A lot of investment would be needed to raise productivity."

   Asked if the euro would help, he did not hesitate.

   "It changes nothing," he said.

Nuclear Showdown Looms as Putin Greets Fresh Obama Sanctions with 80+ New ICBMs by 2015

   Reuters --- Unfazed by the string of economic pressures from the West, as headlined by the fresh sanctions announced Friday by U.S. President Barack Obama, Russian leader Vladimir Putin revealed this week that Moscow will acquire 50 more intercontinental ballistic missiles (ICBM) by end of 2015, further increasing the drumbeats of war.

   A defiant Putin informed Russia's defence officials at the end of the week that by next year, the country's arsenal of ICBMs will see the delivery of around 80 more nuclear missiles. This 2014, the Kremlin acknowledged that 38 ICBMs were received by the Strategic Nuclear Forces, Russia's ITAR-Tass news agency said in a new report.

Taiwan to buy US missile frigates

   China issues expected angry statements after Taiwan says it will buy two vessels. But purchase is the first since 2010 and has little effect on the mainland's naval advantage viz a viz the democratic island.

   US President Barack Obama’s approval to sell guided-missile frigates to Taiwan will not alter China's major military advantage over the island it has long called a "renegade" province. But a sale represents the first significant self-defense purchase by Taiwan in three years, and brought an expected rebuke by China.

   The White House’s sign-off Thursday on the Naval Vessel Transfer Act of 2013 act, authorizing sales of four ships, prompted a formal protest from Beijing. China’s foreign ministry also told the US government to abolish the arms sales in order to help mainland China get on better with both Washington and Taipei.

   Beijing sees Taiwan as part of its territory rather than as a country entitled to defend itself, and worries that the more militarily powerful US would help it in any conflict with China. The purchase comes during a year of China-driven squabbles over territory and airspace in and around the South China Sea. 

   Yet China’s anger with the US is likely to fade, analysts say, given the fresh momentum in relations after Mr. Obama’s meetings in Beijing last month with Chinese leader Xi Jinping to discuss tourism, climate control and tariffs on electronic goods.

   “Beijing will squawk, and Obama will rightly tune them out,” says Sean King, senior vice president with the consultancy Park Strategies in New York and Taipei. “I don't think he cares what Beijing thinks” about the sales of the naval vessels, two of which Taiwan is likely to purchase. 

   China’s rebuke is expected to be light compared to past remonstrations, as the ships are to replace outdated 20-year-old frigates and are said not to add next generation technology to Taiwan’s military, analysts say. China’s fleet of 520 vessels is already five times bigger than Taiwan’s.

   “These are not state-of-the-art vessels. They don’t significantly enhance Taiwan’s military capabilities,” said Raymond Wu, managing director of Taipei-based political risk consultancy e-telligence. “It’s not something that will catch a lot of local attention.”

   The US has kept peace by not approving new arms deals with Taiwan since the 2011 agreement to upgrade 146 US-made F-16 fighter jets.

   When the United States approved a $6.4 billion arms package for Taiwan in 2010, including Patriot air-defense missiles and Black Hawk helicopters, China cancelled specific military exchanges with Washington and said it would sanction American defense contractors involved in the deal.

   In 2008, China cut military contacts with the US for nearly 10 months after an agreement to sell arms to Taiwan.

   Obama’s signature Thursday also does not guarantee a sale, which Taipei and Washington must arrange separately. It will be subject to possibly tough parliamentary approval in Taiwan and, if worth more than $50 million as expected, a nod from US Congress.

   China may also try to avoid irking Taiwan over the frigates as it wants to extend six years of upbeat relations after a 60-year freeze that had occasionally brought them to the brink of war. Beijing sees its 21 trade and investment deals with Taiwan since 2008 as enticements to eventual unification.

Russia and US Fight For Underwater Drone Supremacy; Moscow Builds More Warplanes Than US

   Russia's constant military expansion has led it to surpass the United States in terms of manufacturing new war planes. News of Russia's increased military activity to protect its interests has added to the tension in Europe on top of the sanctions imposed by the West over its meddling in Ukraine.

   According to the Russian United Aircraft Corporation, Russia has built more combat aircraft than the U.S. in 2014. Vladislav Goncharenko, deputy head of the military aviation programme department of UAC, said in an interview with radio station Ekho Moskvy, confirmed the information. He said UAC delivered 68 planes and 100 others including 95 attack planes for the use of the Russian Air Force in 2014.

   The deputy head said the UAC subsidiaries are currently modernising the military's existing aircraft and the developing new weapons systems. The number of new aircraft being delivered for use in the frontline of the Russian Air Force may be a clear indication that the government is intensifying efforts to increase the country's military power, The Aviationist reported.

   Meanwhile, the recent announcement of the successful testing of the U.S. Navy's GhostSwimmer underwater drone has prompted Russia to respond. According to the Washington Times, Russia is also close to completing its unmanned submarines. The U.S. Navy Pacific Command revealed the successful testing phase last week. In a statement released by the Pacific Command, Michael Rufo, Boston Engineering's Advanced Systems Group director, said GhostSwimmer will increase the U.S. Navy's success rate in missions while keeping more sailors and divers safe.

   Following the announcement, Russia Today headlined a story that Russia's fifth-generation submarines will be equipped with underwater drones. Despite announcing their own development of underwater drones, the Russians did not give away much about its own technology. However, the U.S. Navy said its own 5-foot drones weigh 100 pounds and have the ability to mimic aquatic life. Rufo reported that the U.S. drones can swim like a fish by moving its tail back and forth.

   Navy Warfare Development Command concepts and innovation department head Capt Jim Loper revealed in a report by Military.com that the underwater drones can remain in water for days or weeks on battery. The unmanned sea vehicle will be equipped with a sensor so it can match marine life movements.

   Russia has been accused of arming separatists in Ukraine by the West, but Moscow has repeatedly denied any involvement. The country is currently on the brink of an economic crisis as oil prices continue to drop, along with the local currency.   

Russia-NATO Tactical Warplanes In Rapid Stand-off; Putin Orders Snap Military Drills

   (IBT) --- Russia and the North Atlantic Treaty Organisation or NATO are displaying rapid provocation aimed at each other, as Russian military officials accused NATO of heightened spy and tactical warplanes deployment over the Baltic border in 2014. NATO doubled its reconnaissance flights over Baltic border in an alarming rate -- 3,000 in total -- according to head of the Russian Defence Ministry's joint military command centre General Mikhail Mizintsev alleged.

   The alarming rate through which NATO is flying its warplanes is being conducted without two-way communication from concerned parties, Mizintsev said. With this, all efforts made to establish the field of trust-building and voluntary transparency between NATO and Russia had officially diminished, Mizintsev said as cited by Bloomberg.  Russia does not welcome NATO's intensified presence over Baltic border, hence it is closely monitoring every move and activities the NATO warplanes are undertaking, Russian Deputy Foreign Minister Sergei concurred.

   NATO is specifically flying its reconnaissance aircraft identified by Russia as RC-135 of the U.S. Air Force, commander-in-chief of the Russian Air Force Colonel General Viktor Bondarev noted. He said this type of spy plane had been spotted over the border practically every day - that made it to 140 flights of this type of plane in 2014 as compared to 22 flights in 2013. Additionally, NATO had also been using a massive airborne warning and control system aircraft or AWACS, surveying the airspace of the Black Sea, Ukraine and western Russia. Similar warplanes from the British and French air forces had also been spotted surveying the airspace.

   NATO on the other hand had previously claimed that they had intercepted a total of Russian warplanes 400 times in 2014 -- 50 percent more as compared in 2013. The alliance had also claimed that it has escorted Russian planes 140 times in 2014 -- a 70 percent increase from 2013. Mizintsev however slammed NATO's claim that its flying missions were in accordance to international rules.

   Besides NATO's spy planes, there is also an increased presence of similar aircrafts from different countries. As per Russia's count, there are 55 incidents where foreign jets were spotted flying in what it described as "dangerous proximity" to its long-range military aircrafts. The said foreign jets were flying at a dangerous distance of less than 100 metres.

   The Swedish Gulfstream spy plane, the German Orion P-35 aircraft, the Danish Challenger aircraft and Portuguese Orion planes are manoeuvred to survey the supposedly classified military activities of the Russian armed forces, Bondarev outlined. These planes are specifically deployed over the Kaliningrad region and above the Baltic waters, Bondarev noted as reported by ITAR TASS.

   Oddly, Russian president Vladimir Putin ordered for a snap military drills involving 9,000 sevicemen, 642 military vehicles, including 250 tanks and APCs, 100 artillery units, 55 warships and Iskander ballistic missile system, Newsweek reported. Putin had reportedly called for the rapid military drill to test the "battle-readiness" of the Russian armed forces.

   The military drill was conducted between Dec 5-10, participated by Russia's navy's Baltic fleet, troops from western military district and Russia's air force personnel. Troops who participated were not aware that they were called as part of the drill, yet they displayed extraordinary qualities and showcase their battle-operational capability, ministry of Defence spokesperson Andrey Kartapolov said.  "A self-sufficient, multi-purpose army of air, sea and land units was assembled in the period of less than a day in the Kaliningrad area," Kartapolov highlighted.

Belarus's Lukashenko demands that trade with Russia be in dollars, euros

   MINSK, Dec 18 (Reuters) --- Belarussian President Alexander Lukashenko has demanded that Belarus's transactions with Russia be settled in dollars or euros because of the slump in the value of Russia's rouble, the official news agency Belta reported on Thursday.

   The Russian rouble suffered its largest intraday loss since 1998 on Tuesday and its weakness poses a threat to the economy of Belarus, a close ally whose main trading partner is Russia.

   Over half of Belarus's exports go to Russia, mainly trucks, tractors and industrial machinery, and around 92 percent of transactions are currently carried out in roubles.

   "We're going to trade not in roubles, but in dollars," Belta quoted Lukashenko as saying. "We should have long ago demanded Russia pay us also in hard currency."

   Belarus earned $739 million less on exports year-on-year in January-October even though volumes remained the same, according to official statistics.

   The plunge in Russia's currency combined with low oil prices, looming recession and Western sanctions over the Ukraine conflict has left the Kremlin facing a financial crisis.

   Belarus's eccentric leader, who has occasionally made remarks critical of Russian policy despite the economies of the two countries being closely intertwined, expressed concern about the turmoil on the Russian market.

   "We're not going to run after Russia. This is categorically forbidden because it is not clear what's happening on the Russian market," he said.

   He said Belarus would not devalue its own currency over the weakness of the Russian rouble. The Belarussian rouble has strengthened to 163 to the Russian rouble from 290 at the beginning of 2014.

Hungary’s Cabinet Braces for Open War in Ukraine, Figyelo Says

   (Bloomberg) --- Hungary is in a “war zone” and must prepare for an escalation in the armed conflict between neighboring Ukraine and Russia, said Janos Lazar, the minister in charge of Prime Minister’s Office. 

   “We absolutely can’t exclude the possibility of a real war between Ukraine and Russia,” Lazar, who also oversees the country’s secret services, said in an interview published in weekly Figyelo today. The conflict may yet enter a “much worse stage” as war is the most likely scenario, Lazar said according to the transcript of the interview.

   Troops in Ukraine, home to more than 100,000 ethnic Hungarians, are fighting pro-Russian rebels as talks on a lasting peace deal have been delayed. Russia’s government denies any involvement in the conflict which has killed more than 4,600 and roiled the two countries’ economies.

   The Hungarians are living as “hostages” in Ukraine, which is “lethally dangerous,” Lazar said. A U.S. decision to provide arms to Ukraine would be “very dangerous and distressing,” Lazar said, adding that Hungary won’t transport any arms itself.

Peace Talks

   U.S. lawmakers are pushing for even tighter sanctions to squeeze Russian President Vladimir Putin’s administration.

   “Hungary’s position is clear: what is needed isn’t sanctions or not only sanctions but also peace talks,” Lazar said.

   Preserving peace in Europe is in the hands of Germany and Hungary opposes the U.S. policy of trying to separate Russia from Europe, Lazar said. Hungary’s key foreign-policy goal in 2015 is to fortify the country’s alliance with Germany, according to Lazar.

   “It would have tragic consequences if the U.S. were to build a new Iron Curtain between Russia and Europe,” he said. 

Russia finance ministry selling reserves to support ruble

   Moscow (AFP) --- Russia's finance ministry is selling its foreign currency to support the ruble, a spokeswoman told AFP on Wednesday.

   "The finance ministry considers the ruble extremely undervalued and is starting to sell its left-over currency on the market," spokeswoman Svetlana Nikitina said. She did not give details of the amount.

   The ruble rose in value after the announcement by the ministry to 81.61 to the euro and 65.15 rubles per dollar.

   "We'll do it for as long as it is needed," deputy finance minister Alexei Moiseyev was quoted as saying by Interfax news agency.

   The finance ministry said it has around $7 billion at its disposal to prop up the currency. It was not going to crack open a rainy day fund.

   The intervention by the finance ministry comes after Russia's central bank has spent more than $10 billion from its currency reserves to prop up the ruble since the start of the month.

   At an emergency meeting on Tuesday the Russian government came up with a list of measures to stabilise the situation, economy minister Alexei Ulyukayev said.

Philippines to get frigates, gunboats, helicopters as tensions with China grow

   MANILA (Reuters) --- The Philippines aims to buy two frigates, two helicopters and three gunboats for deployment in the South China Sea where a territorial dispute with China has lent urgency to the need to bolster forces, a Philippine navy officer said on Wednesday.

   China claims nearly the entire South China Sea, rejecting claims to parts of it by the Philippines, Brunei, Malaysia, Vietnam and Taiwan.

   The confrontation between the Philippines and China has been particularly tense since June 2012 when China seized a rocky outcrop known as the Scarborough Shoal which is believed to be rich in oil and natural gas as well as fisheries resources.

   "The events in the West Philippine Sea actually gave some urgency on the acquisition," Rear Admiral Caesar Taccad, head of the Philippine Navy's weapons system, told reporters.

   The Philippines has embarked on a 15-year, 90 billion peso ($2 billion) modernization program to improve its capability to defend its maritime borders.

   The procurement list announced on Wednesday will be bought with 39 billon pesos from that budget.

   The government aimed to sign contracts early next year for the new warships, Taccad said on board the navy's most powerful warship, BRP Gregorio del Pilar, a former U.S. coastguard cutter.

   China has been reclaiming land in various parts of the Spratlys islands and appear to be constructing airstrips and ports in five reefs to gain full control of them.

   The Philippines, a close U.S. ally, has brought an international arbitration case against China, seeking clarification on its entitlements under the U.N. Convention on the Law of the Sea. China has refused to take part in the arbitration. A ruling is expected late next year.

   Vietnam recently submitted its position to the arbitration tribunal, drawing an angry response from China.

   South Korea, Spain and France had submitted tenders for two stealth, missile-guided frigates worth 18 billion pesos while Italy and Indonesia are bidding for two anti-submarine warfare helicopters, Taccad said.

   Indonesia won contracts for two strategic sealift vessels and will deliver the first ship in early 2016. Taiwan and five other shipyards are competing for three missile-capable multi-purpose attack craft.

   Coastal radars will be supplied by the United States.

Putin holds late-night talks on Ukraine with European leaders

   MOSCOW (AFP) --- Russia's President Vladimir Putin and his French, German and Ukrainian counterparts agreed in a phone call early Wednesday that they wanted talks between Kiev, Moscow and rebels controlling parts of eastern Ukraine to resume as soon as possible.

   The telephone conversation came after the White House confirmed that US President Barack Obama will sign into law fresh sanctions against Russia.

   The Kremlin said in a statement that the leaders "continued discussion of the crisis situation in Ukraine" and stressed the "necessity of a stable ceasefire" in conflict-hit eastern Ukraine.

   They also noted "the importance of holding a meeting of the contact group as soon as possible in the interests of carrying out the Minsk pact," the Kremlin said, referring to a peace deal reached in September.

   The so-called trilateral contact group includes representatives from the separatist side, Ukraine, Russia and the OSCE.

   The leaders agreed to "continue telephone contacts in the near future," the Kremlin statement said.

   The eight-month-old conflict between government forces and pro-Russian separatists in eastern Ukraine has left at least 4,634 dead and 10,243 wounded, and displaced more than 1.1 million people, according to new UN figures.

Russia carried out snap military drills in Kaliningrad region

   MOSCOW (Reuters) --- President Vladimir Putin ordered snap military drills in Russia's westernmost Kaliningrad region earlier this month, the Defense Ministry said on Tuesday.

   The drills, which mobilized 9,000 soldiers and more than 55 naval ships, were carried out to test the military's combat readiness in Kaliningrad, an exclave that borders NATO members Lithuania and Poland.

   The drills were carried out between Dec. 5-10.

   "The exercise involved units of missile troops, artillery, mechanized infantry, airborne troops, marine forces, units of reconnaissance, communications, logistics, as well as combat and military transport aircraft, helicopters and ships of the Baltic Fleet," TASS news agency said, citing the Armed Forces General Staff.

   Russia has carried out numerous snap military drills since ties with the West plummeted in the crisis over Ukraine and Moscow has criticized what it called a build-up of NATO forces near Russia's borders.

   Kiev and the West say some of those exercises carried out in western Russia near the border with Ukraine were used to increase pressure on Kiev and show support for pro-Russian separatists who took up arms in east Ukraine in April.

   The report said all units of the armed forces used in the exercises had returned to their bases.

UK defense minister: Putin’s new aggression could spark war with NATO forces

   (Censor.NET) --- British Defense Secretary Michael Fallon warned that Vladimir Putin was playing a ‘provocative and dangerous’ game by ordering Russian Bear bombers to fly over British waters.

   Censor.NET reports citing The Daily Mail.

   Mr. Fallon said Mr. Putin's new aggression could even spark a war with NATO forces. In a blunt message, he said Britain should 'prepare for the worst' as the Russian President flexes his muscles.

   He accused Russia of playing a 'provocative and dangerous' game - and warned there was a danger that a Russian military aircraft operating secretly could accidentally crash into an airliner which might not become aware of its presence until it was too late.

   A spokesman said: 'Even though direct military confrontation has been avoided so far, the mix of more aggressive Russian posturing and the readiness of Western forces to show resolve increases the risk of unintended escalation and the danger of losing control over events.'

   Ministers insist there is 'no military solution' to the Ukraine crisis. But in an interview yesterday, Mr. Fallon suggested this did not necessarily mean war can be avoided.

   Asked if a military conflict between Russia and NATO was now a possibility, the Defense Secretary replied: "I don't trust Putin at the moment, and we have to prepare for the worst."

   Defense sources insisted last night that Mr. Fallon did not believe a war between Russia and the West was likely. A source said: "He was talking about NATO and the point of the exercises we are doing in eastern Europe, as well as collective self-defense, all acting as a deterrent." 

Sweden and Denmark recall ambassadors from Russia

   (Novostimira.ua) --- The foreign ministers of Denmark and Sweden, Martin Lidegaard and Margot Wallström, said that Denmark and Sweden have decided to withdraw their ambassadors from the Russian Federation. The reason for this decision was the incident that occurred on December 12, when the Russian military aircraft nearly collided with a passenger airliner in the sky in the south of Sweden.

   As reported by Margot Wallström, it was a mutual decision made by Sweden and Denmark. However, she also noted that on December 14 they are in contact with the Russian embassy on the matter.

   "Today, we also held a meeting", - added the Minister.

Ready-To-Fire Nuclear Missiles, Putin Cold War Rhetoric Must Be Addressed to Prevent World War 3

   (IBT) --- The world is frightfully a heartbeat away from a dreadful nuclear showdown between Russia and the United States, which is a scenario increasingly posed by the existence of ready-to-launch nuclear missiles.

   And the likelihood that World War III could break out anytime is further heightened by the grim tone that Russian President Vladimir Putin has been sounding off lately. Putin, according to a former NATO head, is practically rattling "his nuclear sword."

Accidental start

   In a statement issued by the European Leadership Network, composed of former defence executives from the United States, the United Kingdom , France and other leading nations, it was suggested that a major global conflict - one that involves nuclear weapons - could be triggered by an accident.

   "Ready-to-use nuclear arms leave states vulnerable to accidental nuclear strikes, while insecurely stored stockpiles could potentially be targeted and stolen by terrorists," the group was reported by RT.com as saying.

   Specifically, the group is alarmed that Iran is likely in the advanced state of developing nuclear capabilities and world leaders appear helpless about it. Also, the terror group Islamic State has been reported to have in its possession uranium compounds, obtained from Iraq, that can be used in making dirty bombs.

   Plus the obvious threat coming from Russia, which to date has the most number of nuclear warheads that are ready to use.

   All told, the group estimated that around 16,300 nuclear weapons are strategically deployed around the world, which spells out the grave risk with Armageddon proportion that humanity is facing.

   "In a vestige of the cold war, too many nuclear weapons in the world remain ready to launch on short notice, greatly increasing the chances of an accident," the group declared, stressing that a global conflict could be sparked by an unintended push of a button.

Launch from the Kremlin

   And such action could originate from Russia, according to retired U.S. navy admiral James Stavridis, who also served as NATO supreme commander in Europe from 2009 to 2013.

   Stavridis has expressed deep concerns that Putin is getting bolder by the day in challenging and testing the West's resolve over Ukraine, pointing to a recent statement of the Russian leaders that says "Russia's partners ... should understand it's best not to mess with us."

   Reading Putin, one would readily conclude that he is all geared up for full-blown stand off or a new Cold War as characterised recently by former Soviet Union premier Mikhail Gorbachev, the one-time NATO chief said.

   "The fact that President Putin chooses to rattle his nuclear sword should not cause us to draw back from assisting the Ukraine," Stavridis told The Guardian.

Stavridis called on the West to arm Ukraine for the former Soviet republic to repel threats coming from Russia.

   Russia is facing economic sanctions by the United States and its NATO allies following's Putin's annexation of Crimea this year and his alleged support of separatist rebels in eastern Ukraine - flashpoints that many fear would trigger World War III, the highlight of which is a nuclear showdown that could wipe out humanity.