Weekly News Wrap-Up 7.18.14

4.jpgBy Greg Hunter’s USAWatchdog.com  

Only three stories in the Weekly News Wrap-Up, but they all have something in common.  They all will have cascading effects that will go on for some time to come.  First up, the downing of Malaysian Airlines Flight 17 over Eastern Ukraine.  Nearly 300 people are dead; and of that total, nearly two dozen are reportedly U.S. citizens.  Everybody is pointing the finger at the other side.  The Ukrainians say it’s Russia’s fault.  The Pro-Russian separatists say it’s Ukraine’s fault, and so does Russia.  No matter whose fault it is, new sanctions and war tensions are mounting.   The President has already ratcheted up more sanctions this week because of Russia’s continued support of the separatists.  More sanctions on Russia are surely coming.  The missiles that shot down the Malaysian jet were from Russia.  Other planes were shot down by the separatists with Russian missiles.  Now, the situation is being elevated up to a whole new level.  Sanctions are likely going to increase; and this time, maybe even the Europeans will level meaningful sanctions.  Putin has already stated that any new U.S. sanctions “will boomerang and cause very serious damage.”  I think the damage Putin is talking about is damage to the U.S. dollar and Western economies.  This could not come at a worse time.  The U.S. economy is weak and just suffered negative 3% plunge in the first quarter.  Banks in Europe are already defaulting on debt, and most are in big financial trouble.  War and sanctions can cause a daisy chain of defaults that can go global.  There are the hundreds of trillions in interest rate derivative exposure in the global system, and the entire financial system can crash a