Russia is at increasing risk of a full-blown financial crisis as the West tightens sanctions and Russian meddling in Ukraine pushes the region towards conflagration.

The country's private companies have been shut out of global capital markets almost entirely since the crisis erupted, causing a serious credit crunch and raising concerns that firms may not be able to refinance debt without Russian state support.

"No Eurobonds have been rolled over for six weeks. This cannot continue for long and is becoming a massive issue," said an official from a major Russian bank. "Companies have to roll over $10bn a month and nothing is moving. The markets have been remarkably relaxed about this, given how dangerous it is. Russia's greatest vulnerability is the bond market," he said.

The warnings came as EU foreign ministers agreed to draft plans for "Stage III" sanctions - this time hitting economic and financial targets - if Russian president Vladimir Putin sends troops into East Ukraine or tries to seize territory. Washington is forcing the pace in any case as is tightens the noose by other means, using regulatory "stealth" power to force banks across the world to pull back from Russia.

Congressman Chris Smith (R-NJ), who chairs the House Subcommittee on Human Rights, is so mad at Google for capitulating to the Chicoms he is going to hold hearings next month on the operating procedures of US Internet companies in China.

He can expect to be getting a call from CIA Director Porter Goss politely requesting that he shut up.

He’ll tell Smith he can vent for a little while longer, enough to make Google execs sweat and be receptive to the call they’ll be getting from Langley. But as soon as the Google boys turn cooperative, Smith had better turn quiet.

Google’s Chicom Collaboration presents a marvelous intelligence opportunity.

On Tuesday (4/08), we learned that "crews searching for the missing Malaysia Airlines flight MH370 have failed to relocate the sounds previously heard deep in the Indian Ocean, raising fears that the batteries in the plane's black box may have died."

The tragic disappearance of all 239 people on board flight MH370 in the Indian Ocean has one really peculiar feature to it: none of the possible explanations is remotely plausible, yet one of them must be true.

The usual rule on these occasions - choose the simplest explanation or, as William of Ockham taught, make the fewest assumptions - simply does not work. There is no simple explanation. Whether the cause was an accidental decompression, a terrorist act or a suicide, all three require us to assume that an outlandish and bizarre sequence of events happened.

I don't know about you, but I have had conversations about MH370 with many people recently, some of whom were fairly confident that they knew what had happened. Yet every story they told was baroque in its contrivance to the point of implausibility, requiring a chain of events that stretched my credulity. Yet, as I say, one such story will turn out to be right.

Consider the sequence of events.

Every few years, at least from the time of President Franklin D. Roosevelt, there is a scandal involving abuse of power at the Internal Revenue Service. We are again in the midst of one of these periodic abuse scandals, with many solemn promises that the problems will be corrected and will not happen again.

As always, the rhetoric is far from the reality for two basic reasons. The first is the nature of the income tax, which, by definition, is subjective in its interpretation of the definition of "income" and thus subject to abuse. The second is the type of person that the IRS attracts as an employee.

In the former, the agency is corrupt in the Orwellian sense. When the federal government's General Services Administration or the IRS takes a number of its employees to Las Vegas for a conference, is this a taxable benefit (income) or not? The answer is this case is "no" because this is the type of benefit the political class enjoys.

In the latter, because the IRS is feared, loathed and resented, it attracts all too many workers who are insensitive to the needs and problems of others, and some even enjoy being bullies.

These flaws of the IRS cannot be mended -- thus the only real solution is to put an end to the IRS itself.