I still believe there will be some sort of diplomatic end to this crisis, before war breaks out between Russia and Ukraine (see Negotiating a Diplomatic Solution in Ukraine: How and Why That Will Happen).

In the meantime, sanctions are extremely counterproductive and the west demands Russia rein in the separatists, even though Russia is clearly not in control.

ZeroHedge has an interesting story this morning Ukraine Scrambles Fighter Jets, Intercepts Airplane Carrying Russian Deputy Premier.

We were one foolish shot away from starting a war, something supposedly no one wants. This is pure idiocy but Obama no doubt views the result as a success.

Mike “Mish” Shedlock