SATURDAY 10/11/14; ISIS Overtaking Kobani and Preparing for Attack on Baghdad

Monster Typhoon Vongfong continues to push towards Japan nearing the southern Okinawa Islands and the winds have diminished to 40 to 85 MPH (64 MPH to 137 KPH). In North Korea, Kim Jong Un’s absence remains a concern. News reports say the young communist leader pulled a tendon requiring three months of rest, however, there may be more dramatic events taking place behind the scenes including a potential coup. North Korea has the nuclear bomb.

ISIS militants control about one-half of Kobani and a couple thousand Kurds are trapped in the city unable to escape. If ISIS takes the remainder of the Syria-Turkey border town, the remaining people face torture and genocidal murder. US and coalition air strikes are helping but generally ineffective. Kurds inside Turkey are fighting the police and government forces for refusing to help the Kurds in Kobani. 200K refugees have fled from Syria into Turkey.

Iraqi troops in Baghdad are preparing for a battle with ISIS radicals that are now only eight miles from the capital city. ISIS has taken over territory north, west and south of Baghdad establishing bases of operation for assaulting Baghdad. ISIS will probably attack the airport first which includes the green zone that was held by US troops during the Iraq War. The world will turn on its head and global markets will react negatively if a bloody war in Baghdad occurs. An attack on Baghdad may be the catalyst that creates the apocalyptic WW III that Pope Francis describes.

Over 4000 people have died from Ebola in West Africa. The television news crew that was traveling with the journalist that contracted Ebola is placed under mandatory quarantine after the crew violated the volunteer isolation. Director Dr Tom Frieden says the CDC is working hard to make sure that Ebola is “not the world’s next AIDS.” The EV-D68 virus spreads infecting 700 people mainly children in 46 states.

The race wars escalate in Ferguson, the suburb of St Louis, Missouri, USA, after another white cop shoots another black youth. The same type of incident created the initial race riots this summer. The police say the youth was armed and shot four times at the off-duty officer that returned fire killing the youth. The young man was wearing an ankle bracelet and under house arrest for a felony gun charge. The youth’s family says he was holding a sandwich and not a gun. Protestors take over the Ferguson police station parking lot. St Louis is ground zero for the escalating race riots in the US as well as social unrest due to the Fed creating an elite class in America while the middle class and poor cannot find jobs.

The computer hacking incidents continue with between 100K and 200K private Snapchat images stolen. The thieves plan to publish the images perhaps as early as tomorrow so if you sent a sexy nude photo to your boyfriend, or girlfriend, via Snapchat the entire world will be able to view your wares. Europol’s European Cybercrime Center in The Hague is picking up Internet chatter that is referencing a future cyber attack against a large bank or financial institution. Russian hackers are suspected of plotting the attack.

The trading action yesterday highlights the move by investors into the perceived safety of the blue-chip dividend, utility and consumer staple stocks. All asset classes are inflated nowadays due to the Fed’s six years of intervention so these defensive stocks will likely not provide the safety that investors are expecting. Comically, as if on cue, two bullish pundits on Fox business television are instructing viewers to buy consumer staples and utilities. Investment advisor Gary Kaltbaum suggests buying PG and Fortune’s Adam Lashinsky recommends XLU.