Update on what's going on the world

It's been a while since I've posted, so I thought I'd give a brief overview of what's been happening around the world.

1. The US primaries continue. The media loves a foot race, and there is enough happening for them to be able to spend a lot of ink looking into who raised money when. Still, unless Romney drops below 60% it probably isn't worth paying much attention to the details. The details, including tonight's debate, is entertainment masquerading as something relatively important. 

2. There is a Greece deal! For everyone (holding Grek debt)!  Well, the collective action clause won't apply to the ECB who swapped their bonds for a version that won't be impacted by the change in Greek law, but they will give up their profits on the debt they acquired below notional value.  It's too bad no one really thinks this will work out well for Greece or those who are dedicated to funding Greece in the long run, but the can has been kicked! Let's see how far it will roll this time. As long as inflation expectations remain low and the LTRO's continue the can should continue to roll.

3. The nuclear Iran issue seems to be heating up. One way to measure this is to look at news stories. Another way is to look at crude markets, the WTI - BRENT spread is driven by both the glut of oil around Cushing and the geopolitical risks pushing Brent oil up.

 When both the Israeli defense minister and US defense secretary are talking to the Economist about an Israeli strike on Iran and sanctions are currently being tried then it isn't just a lot of hot air. With Iran not cooperating with IAEA inspectors it seems like something is going to happen there soon.

There is also a lot of talk about austerity given the situation that many Western countries find themselves in, but when they don't take into account monetary policy's reaction to fiscal stimulus it feels like I'm reading one side of the debate.