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The Europe for Freedom and Direct Democracy (EFDD) group at the European Parliament, which is known for being the most outspoken Euro skeptic alliance has collapsed. The breakup came after the withdrawal of Latvian MEP Iveta Grigule and was allegedly brought about by lobbying against the block with participation of EU Parliament President Martin Schulz.

To officially form a block at the EU Parliament and to be privied to EU funding, extra talking time and committee seats, requires that a block represents members from at least seven EU member states. On June 4, 2014, the Danish People’s Party and the Finns Party left the block and were admitted to the European Conservatives and Reformists. EFDD was reduced to represent only six member states when Latvian MEP Iveta Grigule left the block. The withdrawal of Grigule is a severe blow for the remaining EFDD members, including the UK Independence Party UKIP and the Italian right-wing populist movement of Beppe Grillo, the Five Star Movement. The withdrawal of Grigule’s support for the EFDD came, allegedly, after intense lobbying against the Euro-skeptic alliance. Among the lobbyists was allegedly the President of the EU Parliament, Martin Schulz.

The EFDD accused Schulz of having caused Grigule’s withdrawal and the collapse of the block. The EFDD alleged that Schulz asked Grigule to resign from the group in return for adopting a role of president in a special EU delegation to Kazakhstan. The collapse deals a severe financial blow to the blocks constituent parties. UKIP could lose up to €14 million, equivalent to US$17.8 million of EU funding, reported the Financial Times.

Over the course of 2014 the prices the world pays for crude oil have tumbled from over $125 per barrel to around $45 per barrel now, and could easily drop further before heading much higher before collapsing again before spiking again. You get the idea. In the end, the wild whipsawing of the oil market, and the even wilder whipsawing of financial markets, currencies and the rolling bankruptcies of energy companies, then the entities that financed them, then national defaults of the countries that backed these entities, will in due course cause industrial economies to collapse. And without a functioning industrial economy crude oil would be reclassified as toxic waste. But that is still two or three decades off in the future.

An additional problem is the very high depletion rate of “fracked” shale oil wells in the US. Currently, the shale oil producers are pumping flat out and setting new production records, but the drilling rate is collapsing fast. Shale oil wells deplete very fast: flow rates go down by half in just a few months, and are negligible after a couple of years. Production can only be maintained through relentless drilling, and that relentless drilling has now stopped. Thus, we have just a few months of glut left. After that, the whole shale oil revolution, which some bobbleheads thought would refashion the US into a new Saudi Arabia, will be over. It won't help that most of the shale oil producers, who speculated wildly on drilling leases, will be going bankrupt, along with exploration and production companies and oil field service companies. The entire economy that popped up in recent years around the shale oil patch in the US, which was responsible for most of the growth in high-paying jobs, will collapse, causing the unemployment rate to spike.

The game they are playing is basically a game of chicken. If everybody pumps all the oil they can regardless of the price, then at some point one of two things will happen: shale oil production will collapse, or other producers will run out of money, and their production will collapse. The question is, Which one of these will happen first? The US is betting that the low oil prices will destroy the governments of the three major oil producers that are not under their political and/or military control. These are Venezuela, Iran and, of course, Russia. These are long shots, but, having no other cards to play, the US is desperate. Is Venezuela enough of a prize? Previous attempts at regime change in Venezuela failed; why would this one succeed? Iran has learned to survive in spite of western sanctions, and maintains trade links with China, Russia and quite a few other countries to work around them. In the case of Russia, it is as yet unclear what fruit, if any, western policies against it will bear. For example, if Greece decides to opt out of the European Union in order to get around Russia's retaliatory sanctions against the EU, then it will become entirely unclear who has actually sanctioned whom.

The dollar’s collapse is nearing.  The European Union is planning to switch it’s payments to the Euro for its oil purchases from Iran, eliminating United States dollar transactions.

it is highly likely that the US dollar will collapse as nations distance themselves from the United States’ often disastrous foreign policies.  As RTreported, dozens of contracts signed between European businesses and the Islamic Republic could be at risk of cancellation if Brussels obeys Washington’s sanctions. This would damage Iran’s economy and European firms would lose a huge market in the Middle East. Switching to alternative settlement currencies allows both sides to continue trading despite US sanctions and will damage the dollar in the process.  Earlier this week, EU foreign policy chief Federica Mogherini said that the foreign ministers of the UK, France, Germany, and Iran had agreed to work out practical solutions in response to Washington’s move in the next few weeks. The bloc is reportedly planning to maintain and deepen economic ties with Iran, including in the area of oil and gas supplies.

The dollar’s collapse is nearing.  The European Union is planning to switch it’s payments to the Euro for its oil purchases from Iran, eliminating United States dollar transactions.

The UK Independence Party is a truly national force and has "momentum" behind it, Nigel Farage has said after its victory in the European elections. Hailing a "breakthrough" in Scotland and a strong showing in Wales, he said UKIP would target its first Westminster seat in next week's Newark by-election. Lib Dem leader Nick Clegg has said he will not resign after his party lost all but one of its 12 MEPs. He said he was not going to "walk away" from the job despite the poor results. Mr Farage has been celebrating his party's triumph in the European polls, the first time a party other than the Conservatives or Labour has won a national election for 100 years.

The UK Independence Party is a truly national force and has "momentum" behind it, Nigel Farage has said after its victory in the European elections. Hailing a "breakthrough" in Scotland and a strong showing in Wales, he said UKIP would target its first Westminster seat in next week's Newark by-election. Lib Dem leader Nick Clegg has said he will not resign after his party lost all but one of its 12 MEPs.

The UK Independence Party is a truly national force and has "momentum" behind it, Nigel Farage has said after its victory in the European elections. Hailing a "breakthrough" in Scotland and a strong showing in Wales, he said UKIP would target its first Westminster seat in next week's Newark by-election. Lib Dem leader Nick Clegg has said he will not resign after his party lost all but one of its 12 MEPs. He said he was not going to "walk away" from the job despite the poor results.

Ukraine’s Prime Minister Arseniy Yatsenyuk announced his resignation in the Rada (Parliament) and that of the entire Cabinet on Thursday, July 24.  This decision was taken following the withdrawal of two parties from the coalition government and the non-adoption of two important pieces of legislation, which had been demanded by the International Monetary Fund (IMF) “I announce my resignation after the collapse of the coalition and the blocking of government initiatives … “In connection with the breakup of the parliamentary coalition, as well as non-adoption of a number of important bills, I announce my resignation,” The resignation of the Prime Minister signifies the collapse of the government and the resignation of the entire cabinet. “But the cabinet members will continue fulfilling their duties until a new coalition is formed in the Rada.”

On July 24th, the Rada failed to support the government’s bill pertaining to the 2014 budget sequestration, which had been demanded by the IMF on behalf of Kiev’s external creditors. The disbursement by the IMF of the “Second Tranche” of a 17 billion dollar policy based loan was conditional upon the prior adoption of this legislation.

The national economy is in crisis, the political structures of the country are in total disarray, all of which is occurring in the immediate wake of the Malaysian Airlines MH17 crash in Eastern Ukraine. The two parties which left the coalition are The Neo-Nazi Svoboda party and the Centre Right Ukraine Democratic Alliance for Reform (UDAR) Party led by former champion boxer Vitali Klitschko.

The European Union’s ruling elite just hammered another nail into its creaky coffin this week with the critical loss of the South Stream gas project. Russian President Vladimir Putin may have been the one to formally pull the plug on the project while on an official visit to Turkey, but most observers can see that it is EU politicking that lay behind the collapse. Putin said that continual obstruction to the South Stream project from Brussels had made it unviable. Putin said that Russia would henceforth be applying its energy resources elsewhere and unveiled a new pipeline route to Turkey from the Black Sea. It was reminiscent of how Russia has directed new energy trade with China and Asia over the past year partly as a result of Western unilateral sanctions and obstinacy. And who could fault for Russia for that?

the contradictions betray an ulterior agenda. The EU’s «probity» over the South Stream is just a cover for its own petty political reasons and a direct corollary of the Washington-Brussels aggressive agenda toward Russia over Ukraine.   Reactions to the news of the project’s cancellation were also indicative of which party was to blame for the debacle. The governments of Bulgaria, Hungary, Slovenia and Serbia described the decision as a blow. The tone of chagrin was deafening. Tellingly they did not rebuke Russia over the decision. Indeed, the Hungarian government said it was Russia’s right to cancel the project given the backdrop of wearisome wrangling by Brussels. While Slovenia’s prime minister Miro Cerar said he was «not surprised» by Russia giving up on the $40 billion undertaking, which was to come into operation in 2018 following its commencement last year.   The above countries were to have acted as key transit partners and stood to gain billions of dollars worth of fees over the long-term supply of gas to Europe. The pipeline was being contracted to supply some 63 billion cubic metres of natural gas from Russia to Central and Southern Europe, including Austria and Italy. That represents about 40 per cent of Russia’s total supply of gas to Europe in 2013. The South Stream route would thus have been a critical component of European energy security and would have reduced gas costs for millions of households. 

The reaction of Bulgaria, Hungary, Slovenia and Serbia to the South Stream collapse of course expressed disappointment over the impact on their economies. But their muted regret was more a reflection of consternation with Brussels for its policy of antagonism with Russia. Brussels’ high-handed slapping on of sanctions against Moscow and its repeated baseless accusations of Russian expansionism in Ukraine have led to the present juncture of badly frayed relations. That has, in turn, put the kibosh on what would have been a critically important improvement in Europe’s energy security, with financial benefits to several countries and millions of EU citizens.   It’s one thing for Brussels to be cavalier towards Russia; it’s quite another for the same elitist power centre to be cavalier towards its own increasingly hard-pressed citizens and their best interests. 

Back in 2012, Mario Draghi, President of the European Central Bank, pledged to do “whatever it takes” to protect the eurozone from collapse, infamous words I’m sure he has come to regret. Draghi’s speech at an investment conference in London boosted markets at the time and forced down Spain and Italy’s borrowing costs after saying; “Within our mandate, the ECB is ready to do whatever it takes to preserve the euro. And believe me, it will be enough.” The markets responded because they were effectively being manipulated. Known as “Outright Monetary Transactions” the scheme was to have been deployed alongside a QE programme from March 2015, itself racking up ¢80billion a month. Several trillion euros later and the EU looks as precarious as ever with growth a distant memory. In Italy, yields on bonds dropped from 6.3 per cent to 1.2 per cent after that famous speech and all seemed good – on the face of it. But deep down, it was not as we had been led to believe. Italy’s government debt grew and is now equal to 133 per cent of GDP. When Ireland imploded and had to be fully bailed out by the ECB, it’s debt pile was 132.2% of GDP.

With all this intervention, the ECB’s balance sheet ballooned – set to overtake the U.S. Fed Reserve and has now reached over $3trillion according to Bank of America Merrill Lynch (not to be confused with national debt). Then, totally off the mainstream media radar came news that another Italian bank had disintegrated. And while attention was focused on the rescue of Banca Monte dei Paschi di Siena, which is still not fully finalised, news came that Banca Etruria, has quietly slipped into bankruptcy. “It was announced (Dec 21st) that the first part of an investigation concerning fraudulent bankruptcy charges (at Banca Etruria), in which 21 board members are implicated, had been closed. This strand of the investigation concerns €180 million of loans offered by the bank which were never paid back, leading to the regional lender’s bankruptcy and eventual bail-in/out last November that left bondholders holding virtually worthless bonds.” Next up and out of the blue comes UniCredit, the country’s largest bank. It is seeking to raise €13bn of desperately needed capital but large as though this is, the biggest problems, according to the FT is that the smaller banks, like Banca Etruria, are now in a perilous position and on the verge of falling over the cliff edge. Italy has banks on every street corner, with more branches per capita than any other OECD country. The lack of growth (occurred since it joined the Euro), has suppressed much needed profits on the one hand whilst seeing poor wage growth on the other, causing drastically increased non-performing loans that now add up to an eye-watering €360billion.

The FT reports that Italian banks “have long sold their own shares and debt to their retail customers as an attractive alternative to savings products, a disgraceful practice that should never have been allowed. It means that ordinary Italians, many in retirement, have already suffered as bank shares have fallen. They will suffer much more in a bail-in.” The FT is suggesting that a full bail-in is on the cards. It is. truepublica reported back in September that banks throughout the EU would simply steal depositors money if any of them failed now that new bail-in rules had been implemented. And that is exactly what is happening. The result of all this is that Mario Draghi, clearly feeling the strain, has finally admitted defeat and said that there is a strong possibility of the EU falling apart. This time the tactic to keep unity was to threaten every country in the EU by stating that leaving the Eurozone would cost dearly and would require any member country to settle its claims or debts with the bloc’s payments system before severing ties. There’s nothing to stop a desperate member country from leaving and simply defaulting.

A hard-hitting EU report on Jerusalem warns that the city has reached a dangerous boiling point of “polarisation and violence” not seen since the end of the second intifada in 2005. Calling for tougher European sanctions against Israel over its continued settlement construction in the city – which it blames for exacerbating recent conflict – the leaked document paints a devastating picture of a city more divided than at any time since 1967, when Israeli forces occupied the east of the city. The report has emerged amid strong indications that the Obama administration is also rethinking its approach to Israel and the Middle East peace process following the re-election of Binyamin Netanyahu as Israel’s prime minister. According to reports in several US papers, this may include allowing the passage of a UN security council resolution restating the principle of a two-state solution. The leaked report describes the emergence of a “vicious cycle of violence … increasingly threatening the viability of the two-state solution”, which it says has been stoked by the continuation of “systematic” settlement building by Israel in “sensitive areas” of Jerusalem.

The disclosure of the 2014 report – which suggests a series of potential punitive measures targeting extremist settlers and settlement products – comes days after Israeli elections which saw Netanyahu emerge as the decisive victor.

For its part, Israel rejects the charge of illegal settlement-building in Jerusalem, claiming the city as its “undivided capital”. Among the recommendations in the report are: Potential new restrictions against “known violent settlers and those calling for acts of violence as regards immigration regulations in EU member states”. Further coordinated steps to ensure consumers in the EU are able to exercise their right to informed choice in respect of settlement products in line with existing EU rules. New efforts to raise awareness among European businesses about the risks of working with settlements, and the advancement of voluntary guidelines for tourism operators to prevent support for settlement business.

And yet, for all this success, the European project is currently teetering on the edge of failure. Growth is anemic at best and socio-economic inequality is on the rise. The countries of Eastern and Central Europe, even relatively successful Poland, have failed to bridge the income gap with the richer half of the continent. And the highly indebted periphery is in revolt. Politically, the center may not hold and things seem to be falling apart. From the left, parties like Syriza in Greece are challenging the EU’s prescriptions of austerity. From the right, Euroskeptic parties are taking aim at the entire quasi-federal model. Racism and xenophobia are gaining ever more adherents, even in previously placid regions like Scandinavia. Perhaps the primary social challenge facing Europe at the moment, however, is the surging popularity of Islamophobia, the latest “socialism of fools.” From the killings at the Munich Olympics in 1972 to the recent attacks at Charlie Hebdo and a kosher supermarket in Paris, wars in the Middle East have long inspired proxy battles in Europe. Today, however, the continent finds itself ever more divided between a handful of would-be combatants who claim the mantle of true Islam and an ever-growing contingent who believe Islam — all of Islam — has no place in Europe.

Europeans are beginning to realize that Margaret Thatcher was wrong and there are alternatives — to liberalism and European integration. The most notorious example of this new illiberalism is Hungary. On July 26, 2014, in a speech to his party faithful, Prime Minister Viktor Orban confided that he intended a thorough reorganization of the country. The reform model Orban had in mind, however, had nothing to do with the United States, Britain, or France. Rather, he aspired to create what he bluntly called an “illiberal state” in the very heart of Europe, one strong on Christian values and light on the libertine ways of the West. More precisely, what he wanted was to turn Hungary into a mini-Russia or mini-China. “Societies founded upon the principle of the liberal way,” Orban intoned, “will not be able to sustain their world-competitiveness in the following years, and more likely they will suffer a setback, unless they will be able to substantially reform themselves.” He was also eager to reorient to the east, relying ever less on Brussels and ever more on potentially lucrative markets in and investments from Russia, China, and the Middle East.

For some, the relationship between Hungary and the rest of Europe is reminiscent of the moment in the 1960s when Albania fled the Soviet bloc and, in an act of transcontinental audacity, aligned itself with Communist China. But Albania was then a marginal player and China still a poor peasant country. Hungary is an important EU member and China’s illiberal development model, which has vaulted it to the top of the global economy, now has increasing international influence. This, in other words, is no Albanian mouse that roared. A new illiberal axis connecting Budapest to Beijing and Moscow would have far-reaching implications.

Bibi Netanyahu’s election, persistent violence through much of the Middle East and North Africa, and intensified efforts to forge a nuclear deal between the P5+1 and Iran topped the news here in Washington this week. But a much bigger story in terms of the future order of global politics was taking place in Europe and Beijing. The story was simply this: virtually all of the closest European allies of the United States, beginning with Britain, defied pressure from Washington by deciding to apply for founding membership in the Asian Infrastructure Investment Bank (AIIB). This Chinese initiative could quickly rival the World Bank and the Asia Development Bank as a major source of funding for big development projects across Eurasia. The new bank, which offers a serious multilateral alternative to the Western-dominated international financial institutions (IFIs) established in the post-World War II order, is expected to attract about three dozen initial members, including all of China’s Asian neighbors (with the possible exception of Japan). Australia, Russia, Saudi Arabia, and other Gulf states are also likely to join by the March 31 deadline set by Beijing for prospective co-founders to apply. Its $50 billion in initial capital is expected to double with the addition of new members, and that amount could quickly grow given China’s $3 trillion in foreign-exchange reserves. More details about the bank can be found in a helpful Q&A here at the Council on Foreign Relations website.

Along with the so-called BRICS bank—whose membership so far is limited to Brazil, Russia, India, China and South Africa—the AIIB poses a real “challenge to the existing global economic order,” which, of course, Western nations have dominated since the establishment of the International Monetary Fund (IMF) and the World Bank in the final days of World War II. As one unnamed European official told The New York Times, “We have moved from the world of 1945.” That Washington’s closest Western allies are now racing to join the AIIB over U.S. objections offers yet more evidence that the “unipolar moment” celebrated by neoconservatives and aggressive nationalists 25 years ago and then reaffirmed by the same forces after the 2003 Iraq invasion is well and truly. And yet, these same neoconservatives continue to insist that—but for Obama’s weakness and defeatism—the United States remains so powerful that it really doesn’t have to take account of anyone’s interests outside its borders except, maybe, Israel’s. (That Washington’s closest Western allies are now racing to join the new bank over U.S. objections could also presage a greater willingness to abandon the international sanctions regime against Iran if Washington is seen as responsible for the collapse of the P5+1 nuclear negotiations with Tehran. Granted, Iran’s economy—and its potential as a source of investment capital—is itsy-bitsy compared to China.)

Indeed, commentators are depicting US allies’ decision to join the AIIB (see here, here, and here as examples) as a debacle for U.S. diplomacy. The Wall Street Journal editorial board has predictably blamed Obama for defeat, calling it a “case study in declining American influence” (although it also defended Washington’s decision against joining and accused Britain of “appeasing China for commercial purposes.”) What the Journal predictably didn’t mention was a key reason why the administration did not seek membership in the new bank: there was virtually no chance that a Republican-dominated Congress would approve it. Indeed, one reason Beijing launched its initiative and so many of our allies in both Asia and Europe have decided to join is their frustration with Republicans in Congress who have refused to ratify a major reform package designed to give developing countries, including China, a little more voting power on the Western-dominated governing boards of the IMF and the World Bank. The Group of 20 (G20) biggest economic powers actually proposed this reform in 2010, and it doesn’t even reduce Washington’s voting power, which gives it an effective veto over major policy changes in both institutions. As a result of this intransigence, the United States is the only G-20 member that has failed to ratify the reforms, effectively blocking their implementation.

Fasten your seatbelts; 2015 will be a whirlwind pitting China, Russia and Iran against what I have described as the Empire of Chaos.

Considering that this swift move was conceived as a checkmate, Moscow’s defensive strategy was not that bad. On the key energy front, the problem remains the West’s – not Russia’s. If the EU does not buy what Gazprom has to offer, it will collapse. Moscow’s key mistake was to allow Russia's domestic industry to be financed by external, dollar-denominated debt. Talk about a monster debt trap  which can be easily manipulated by the West. The first step for Moscow should be to closely supervise its banks. Russian companies should borrow domestically and move to sell their assets abroad. Moscow should also consider implementing a system of currency controls so the basic interest rate can be brought down quickly. And don’t forget that Russia can always deploy a moratorium on debt and interest, affecting over $600 billion. That would shake the entire world's banking system to the core. Talk about an undisguised “message” forcing the US/EU economic warfare to dissolve.

Global oil prices are bound to remain low. All bets are off on whether a nuclear deal will be reached by this summer between Iran and the P5+1. If sanctions (actually economic war) against Iran remain and continue to seriously hurt its economy, Tehran’s reaction will be firm, and will include even more integration with Asia, not the West.

There's more, much more. These four characters - Bersani, Monti, Grillo, Berlusconi - happen to be at the heart of a larger than life Shakespearean tragedy: the political failure of the troika (European Commission, European Central Bank and International Monetary Fund), which translates into the politics of the European Union being smashed to pieces. That's what happens when the EU project was never about a political ''union'' - but essentially about the euro as a common currency. No wonder the most important mechanism of European unification is the European Central Bank. Yet abandon all hope of European politicians asking their disgruntled citizens about a real European union. Does anybody still want it? And exactly under what format?

All hell is breaking loose in the EU. Le Monde insists Europe is not in agony. Oh yes, it is; in a coma. And yet Brussels (the bureaucrat-infested European Commission) and Berlin (the German government) simply don't care about a Plan B; it's austerity or bust. Predictably, Dutch Finance Minister Jeroen Dijsselbloem - the new head of the spectacularly non-transparent political committee that runs the euro - said that what Monti was doing (and was roundly rejected by Italians) is ''crucial for the entire eurozone''.

The verdict is of an Italy ''in the hands of polit-clowns that may shatter the euro or force the country to exit''. Even the liberal-progressive Der Tagesspiegel in Berlin defines Italy as ''a danger to Europe''

As German Chancellor Angela Merkel has said, loans must be repaid. In principle, of course, she is right, but there are extenuating circumstances, including that the lenders baited the trap in which the Greeks have fallen. The lenders offered loans when they should have known that the borrowers had little chance of repaying them.Sometimes in Greece – as, for example, in Latin America – bank officers encouraged borrowing because they got bonuses for generating business, a common banking practice. Other loans were made for political purposes. Some also had “security” aspects.Collectively, the Greeks are “guilty” of accepting the loans. They should have known how hard it would be to repay them. Some, prudently, refused, but when the loans temporarily created a minor boom, almost everyone was swept up in the euphoria.

And the Greeks were not alone. Other heavy borrowers included the governments and peoples of Spain, Portugal, Italy and Ireland. This is what makes the current crisis more than just a Greek problem.Internationally, there are already signs that lenders are reacting to the Greek vote in panic. If one country that borrowed heavily is defaulting, they ask, which other heavily-borrowing country is likely to be next? Many have suggested it will be Spain. Apparently a number of lenders believe that popular Spanish movements resemble the coalition of groups supporting Greek Prime Minister Alexis Tsipras’s Syriza. The bankers may not particularly care about the politics or ideology, but they fear the turmoil.Bankers are usually noted for their prudence (especially when the risks of non-payment are readily apparent). And prudence argues for either making no new loans or even calling in those already made. This could dramatically harm the Spanish economy where already in this year nearly one in four workers could not find a job.So, it’s clear that the time of danger is here. What about the time for statesmanship? Ironically, the lenders do not seem to have yet understood that the “No” vote could save the Euro, save Greece – and potentially save Spain, Italy, Portugal and Ireland. Why is that so?

It is so because having secured his support at home, Prime Minister Tsipras can now afford to negotiate a sensible deal. And, having seen that Tsipras survived what amounted to a vote-of-no-confidence and would have meant his political removal if he had lost, Chancellor Merkel and French President Francois Hollande now realize that they must negotiate a sensible deal with Tsipras if they are to save the Euro and potentially the European Union.What would be the basis of a compromise? While there are details of considerable complexity, the heart of the matter is reasonably simple:First, Greece cannot repay the huge debt in the foreseeable future. That would have been true even if the Greeks had voted “yes.” Put starkly, the IMF, the European Central Bank and other creditors must forgive a large part of the Greek debt. They probably will choose to disguise “forgiveness” by calling it an extension into the remote future.

Putin announced that Russia has cancelled the South Stream project on December 1, 2014. Instead the South Stream pipeline project has been replaced by a natural gas pipeline that goes across the Black Sea to Turkey from the Russian Federation’s South Federal District. This alternative pipeline has been popularly billed the «Turk Stream» and partners Russian energy giant Gazprom with Turkey’s Botas. Moreover, Gazprom will start giving Turkey discounts in the purchase of Russian natural gas that will increase with the intensification of Russo-Turkish cooperation. The natural gas deal between Ankara and Moscow creates a win-win situation for both the Turkish and Russian sides. Not only will Ankara get a discount on energy supplies, but Turk Stream gives the Turkish government what it has wanted and desired for years. The Turk Stream pipeline will make Turkey an important energy corridor and transit point, complete with transit revenues. In this case Turkey becomes the corridor between energy supplier Russia and European Union and non-EU energy customers in southeastern Europe. Ankara will gain some leverage over the European Union and have an extra negotiating card with the EU too, because the EU will have to deal with it as an energy broker.

For its part, Russia has reduced the risks that it faced in building the South Stream by cancelling the project. Moscow could have wasted resources and time building the South Stream to see the project sanctioned or obstructed in the Balkans by Washington and Brussels. If the European Union really wants Russian natural gas then the Turk Stream pipeline can be expanded from Turkey to Greece, the former Yugoslav Republic (FYR) of Macedonia, Serbia, Hungary, Slovenia, Italy, Austria, and other European countries that want to be integrated into the energy project. The cancellation of South Stream also means that there will be one less alternative energy corridor from Russia to the European Union for some time. This has positive implications for a settlement in Ukraine, which is an important transit route for Russian natural gas to the European Union. As a means of securing the flow of natural gas across Ukrainian territory from Russia, the European Union will be more prone to push the authorities in Kiev to end the conflict in East Ukraine.

From the perspective of Russian Presidential Advisor Sergey Glazyev, the US is waging its multi-spectrum war against Russia to ultimately challenge Moscow’s Chinese partners. In an insightful interview, Glazyev explained the following points to the Ukrainian journalist Alyona Berezovskaya — working for a Rossiya Segodnya subsidiary focusing on information involving Ukraine — about the basis for US hostility towards Russia: the bankruptcy of the US, its decline in competitiveness on global markets, and Washington’s inability to ultimately save its financial system by servicing its foreign debt or getting enough investments to establish some sort of innovative economic breakthrough are the reasons why Washington has been going after the Russian Federation. [13] In Glazyev’s own words, the US wants «a new world war». [14] The US needs conflict and confrontation, in other words. This is what the crisis in Ukraine is nurturing in Europe. Sergey Glazyev reiterates the same points months down the road on September 23, 2014 in an article he authors for the magazine Russia in Global Affairs, which is sponsored by the Russian International Affairs Council — a think-tank founded by the Russian Foreign Ministry and Russian Ministry of Education 2010 — and the US journal Foreign Affairs — which is the magazine published by the Council on Foreign Relation in the US. In his article, Glazyev adds that the war Washington is inciting against Russia in Europe may ultimately benefit the Chinese, because the struggle being waged will weaken the US, Russia, and the European Union to the advantage of China. [15] The point of explaining all this is to explain that Russia wants a balanced strategic partnership with China. Glazyev himself even told Berezovskaya in their interview that Russia wants a mutually beneficial relationship with China that does reduce it to becoming a subordinate to Beijing. [16]

Western policymakers and commentators wrongly assume that sanctions will force Iranian concessions in nuclear talks that resume this week in Kazakhstan - or perhaps even undermine the Islamic Republic's basic stability in advance of the next Iranian presidential election in June.  Besides exaggerating sanctions' impact on Iranian attitudes and decision-making, this argument ignores potentially fatal flaws in the US-led sanctions regime itself - flaws highlighted by ongoing developments in Europe and Asia, and that are likely to prompt the erosion, if not outright collapse of America's sanctions policy.       Virtually since the 1979 Iranian revolution, US administrations have imposed unilateral sanctions against the Islamic Republic. These measures, though, have not significantly damaged Iran's economy and have certainly not changed Iranian policies Washington doesn't like. 

Secondary sanctions are a legal and political house of cards. They almost certainly violate American commitments under the World Trade Organisation, which allows members to cut trade with states they deem national security threats but not to sanction other members over lawful business conducted in third countries. If challenged on the issue in the WTO's Dispute Resolution Mechanism, Washington would surely lose.  

Last year, the European Union - which for years had condemned America's prospective "extraterritorial" application of national trade law and warned it would go to the WTO's Dispute Resolution Mechanism if Washington ever sanctioned European firms over Iran-related business - finally subordinated its Iran policy to American preferences, banning Iranian oil and imposing close to a comprehensive economic embargo against the Islamic Republic.   In recent weeks, however, Europe's General Court overturned European sanctions against two of Iran's biggest banks, ruling that the EU never substantiated its claims that the banks provided "financial services for entities procuring on behalf of Iran's nuclear and ballistic missile programmes". 

Within the European Union, a profound awakening of public consciousness is taking place as organizers seek to obtain one million signatures on a petition in favor of a basic income guarantee for all citizens. Under the EU constitution, this number of signatures is required for the proposal to undergo formal study and debate by the European parliament. In Switzerland, however, voters have seized the initiative through their own petition to have the Swiss government vote on a basic income guarantee of $2,500 Swiss francs per month, equivalent to $2,800 U.S. dollars.

The details are emerging of a new secret and quite stupid Saudi-US deal on Syria and the so-called IS. It involves oil and gas control of the entire region and the weakening of Russia and Iran by Saudi Arabian flooding the world market with cheap oil. Details were concluded in the September meeting by US Secretary of State John Kerry and the Saudi King. The unintended consequence will be to push Russia even faster to turn east to China and Eurasia. One of the weirdest anomalies of the recent NATO bombing campaign, allegedly against the ISIS or IS or ISIL or Daash, depending on your preference, is the fact that with major war raging in the world’s richest oil region, the price of crude oil has been dropping, dramatically so. Since June when ISIS suddenly captured the oil-rich region of Iraq around Mosul and Kirkuk, the benchmark Brent price of crude oil dropped some 20% from $112 to about $88. World daily demand for oil has not dropped by 20% however. China oil demand has not fallen 20% nor has US domestic shale oil stock risen by 21%.

What has happened is that the long-time US ally inside OPEC, the kingdom of Saudi Arabia, has been flooding the market with deep discounted oil, triggering a price war within OPEC, with Iran following suit and panic selling short in oil futures markets. The Saudis are targeting sales to Asia for the discounts and in particular, its major Asian customer, China where it is reportedly offering its crude for a mere $50 to $60 a barrel rather than the earlier price of around $100. [1] That Saudi financial discounting operation in turn is by all appearance being coordinated with a US Treasury financial warfare operation, via its Office of Terrorism and Financial Intelligence, in cooperation with a handful of inside players on Wall Street who control oil derivatives trading. The result is a market panic that is gaining momentum daily. China is quite happy to buy the cheap oil, but her close allies, Russia and Iran, are being hit severely.

The US-Saudi oil price manipulation is aimed at destabilizing several strong opponents of US globalist policies. Targets include Iran and Syria, both allies of Russia in opposing a US sole Superpower. The principal target, however, is Putin’s Russia, the single greatest threat today to that Superpower hegemony. The strategy is similar to what the US did with Saudi Arabia in 1986 when they flooded the world with Saudi oil, collapsing the price to below $10 a barrel and destroying the economy of then-Soviet ally, Saddam Hussein in Iraq and, ultimately, of the Soviet economy, paving the way for the fall of the Soviet Union. Today, the hope is that a collapse of Russian oil revenues, combined with select pin-prick sanctions designed by the US Treasury’s Office of Terrorism and Financial Intelligence will dramatically weaken Putin’s enormous domestic support and create conditions for his ultimate overthrow. It is doomed to fail for many reasons, not the least, because Putin’s Russia has taken major strategic steps together with China and other nations to lessen its dependence on the West. In fact the oil weapon is accelerating recent Russian moves to focus its economic power on national interests and lessen dependence on the Dollar system. If the dollar ceases being the currency of world trade, especially oil trade, the US Treasury faces financial catastrophe. For this reason, I call the Kerry-Abdullah oil war a very stupid tactic.

Meretz Party head, Israeli Member of Knesset (MK) Zehava Gal-On, stated Saturday that the theory of Prime Minister Benjamin Netanyahu of running the conflict has failed, and added that the only solution is ending this conflict through a political solution. “Israel cannot just ignore the Quartet Committee report,” Gal-On said, “Israel must understand that the only solution to stopping the attacks and the escalation is reaching a political soliton to the conflict, and ending this occupation.” “The conflict is running us; the recent attacks and threats have proven that the calm we’ve seen was temporary,” the Israeli official said, “Netanyahu’s theory of running the conflict has completely collapsed, and now this conflict is running us.” The Israeli MK also said that what several politicians are proposing is the use of more military force, and iron fist policies that only kill hope. “What they are suggesting is not different than witchcraft and deception,” she added, “It’s like placing a small bandage on a severed hand.”

In its July 1st report, the Quartet Committee (UN, Russia, EU and USA) reiterated the need for a negotiated two-state solution as the only way to reach a lasting peace agreement that ensures Israel’s security and the meets the Palestinian aspirations of independence and sovereignty, by ending the occupation that began in 1967, and resolving all permanent status issues. It also denounced the “ongoing construction and expansion of Israeli settlements in the occupied Palestinian territories”, and the Palestinian Authority’s “lack of control in Gaza, and called on both Israel and the Palestinian Authority to resume meaningful negotiations that resolve all final status issues.” The Quartet Committee also called on the Israelis and Palestinians to “independently demonstrate, through policies and actions, a genuine commitment to the two-state solution and refrain from unilateral steps that prejudge the outcome of final status negotiation.”

Massive anti-austerity strikes and protests swept across Europe as millions took to the streets to express their frustration over rising unemployment and dire economic prospects. Many rallies ended with violent clashes with police. Workers marched in 23 countries across Europe to mark the European Day of Action and Solidarity.General strikes had been called in Spain and Portugal, paralyzing public services and international flights, in Belgium and France transport links were partially disrupted by strikes and demonstrations, in Italy and Greece thousands of workers and students marched through the streets.

The Europe-wide strike action, the largest in a series of protests against the austerity policies, was coordinated by the European Trade Union Confederation (ETUC)

An legitimately-elected (said by all international monitors) Ukrainian President, Viktor Yanukovich, has been driven from office, forced to flee as a war criminal after more than three months of violent protest and terrorist killings by so-called opposition. His “crime” according to protest leaders was that he rejected an EU offer of a vaguely-defined associate EU membership that offered little to Ukraine in favor of a concrete deal with Russia that gave immediate €15 billion debt relief and a huge reduction in Russian gas import prices. Washington at that point went into high gear and the result today is catastrophe. A secretive neo-nazi military organization reported linked to NATO played a decisive role in targeted sniper attacks and violence that led to the collapse of the elected government.

Snipers began shooting into the crowd on February 22 in Maidan or Independence Square. Panic ensued and riot police retreated in panic according to eyewitnesses. The opposition leader Vitali Klitschko withdrew from the deal, no reason given. Yanukovich fled Kiev.[3] The question unanswered until now is who deployed the snipers? According to veteran US intelligence sources, the snipers came from an ultra-right-wing military organization known as Ukrainian National Assembly – Ukrainian People’s Self-Defense (UNA-UNSO).

Strange Ukraine ‘Nationalists’ The leader of UNA-UNSO, Andriy Shkil, ten years ago became an adviser to Julia Tymoshenko. UNA-UNSO, during the US-instigated 2003-2004 “Orange Revolution”, backed pro-NATO candidate Viktor Yushchenko against his pro-Russian opponent, Yanukovich. UNA-UNSO members provided security for the supporters of Yushchenko and Julia Tymoshenko on Independence Square in Kiev in 2003-4.[4] UNA-UNSO is also reported to have close ties to the German National Democratic Party (NDP). [5] Ever since the dissolution of the Soviet Union in 1991 the crack-para-military UNA-UNSO members have been behind every revolt against Russian influence. The one connecting thread in their violent campaigns is always anti-Russia. The organization, according to veteran US intelligence sources, is part of a secret NATO “GLADIO” organization, and not a Ukraine nationalist group as portrayed in western media. [6] According to these sources, UNA-UNSO have been involved (confirmed officially) in the Lithuanian events in the Winter of 1991, the Soviet Coup d’etat in Summer 1991, the war for the Pridnister Republic 1992, the anti-Moscow Abkhazia War 1993, the Chechen War, the US-organized Kosovo Campaign Against the Serbs, and the August 8 2008 war in Georgia. According to these reports, UNA-UNSO para-military have been involved in every NATO dirty war in the post-cold war period, always fighting on behalf of NATO. “These people are the dangerous mercenaries used all over the world to fight NATO’s dirty war, and to frame Russia because this group pretends to be Russian special forces. THESE ARE THE BAD GUYS, forget about the window dressing nationalists, these are the men behind the sniper rifles,” these sources insist. [7]