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3) Beijing and Moscow committed to a second gas mega-deal - this one through the Altai pipeline in Western Siberia - after the initial "Power of Siberia" mega-deal clinched last May. 4) Beijing announced the funneling of no less than US$40 billion to start building the Silk Road Economic Belt and the 21st Century Maritime Silk Road.

Predictably, once again, this vertiginous flurry of deals and investment had to converge towards the most spectacular, ambitious, wide-ranging plurinational infrastructure offensive ever attempted: the multiple New Silk Roads - that complex network of high-speed rail, pipelines, ports, fiber optic cables and state of the art telecom that China is already building across the Central Asian stans, linked to Russia, Iran, Turkey and the Indian Ocean, and branching out to Europe all the way to Venice, Rotterdam, Duisburg and Berlin

Egyptian President Abdel Fattah al-Sisi has hailed the economic and security relationship between Egypt and Russia, and announced the establishment of a “free trade zone” between Egypt and the Russian-led Eurasian Economic Union (EEU).

Sisi also announced a strengthening of trade relations between the two countries, culminating in a preliminary agreement to create a Russian industrial zone in Egypt, near the Suez Canal. The pair also said that they would set up a nuclear power plant designed to “help Egypt reach its energy needs”. Egypt had taken steps in the early 1980s to launch a nuclear plant to produce electricity in Dabaa but it was shut down after the Chernobyl disaster in 1986. The EEU currently consists of Russia, Armenia, Belarus, Kyrgyzstan and Kazakhstan and has generally been seen as an attempt by Russia to provide a counterweight to the European Union (EU).

The decision by Egypt to increase its bilateral trade with Russia is likely to further increase tensions with the EU and the US, who have placed sanctions on Russia over its alleged interference in the Ukraine conflict. It is possible the meet might also upset wealthy Gulf donors who have clashed with Moscow over its support of Syrian President Bashar al-Assad.

Six months ago, the price of oil—the lifeblood of the Russian economy—began to crater, and U.S.-led sanctions, implemented in the wake of Russia’s annexation of Crimea in Ukraine, were biting. Russia’s currency, the ruble, buckled, and capital flight began to accelerate as rich but nervous Russians moved more and more money out of the country. It seemed plausible then to wonder: Could Vladimir Putin be losing his grip? Might economic pressure be enough to rein him in, or even lead to his downfall?Today, the answer is becoming clear—and it’s not the one the West was hoping for. Not only is Putin still standing, but the Russian economy, against most expectations, is recovering. Its stock market is one of the best performing globally this year; the ruble, after losing nearly half its value against the dollar over the course of a year, is rebounding; interest rates have come down from their post-sanctions peak; the government is taking in more revenue than its own forecast expected; and foreign exchange reserves have risen nearly $10 billion from their post-crisis low.

The lower price of oil still hurts. Citicorp economists estimate that every $10 decline in the price of Brent crude shaves 2 percent from Russia’s gross domestic product (GDP). Further declines—not out of the question, given that Saudi Arabia, the world’s largest and lowest-cost producer, is still pumping record amounts of crude—will crimp growth even more. But those same Citicorp economists forecast that GDP, after contracting for the past 18 months, could now begin to grow at up to 3.5 percent per year, even without a recovery in crude prices.

Though better run than many Russian firms, Severstal is not an outlier. According to data from Bloomberg, some 78 percent of Russian companies on the MICEX index showed greater revenue growth in the most recent quarter than their global peers did. And Russian companies on the whole are now more profitable than their peers on the MSCI Emerging Markets index.What’s bailing out Moscow? For the second time in two decades, Russia is showing that while a sharp drop in its currency’s value does bring financial pain—it raises prices for imports and makes any foreign debt Russia or its companies have taken on that much more expensive in ruble terms—it also eventually produces textbook economic benefits. Since a devaluation raises import prices, it also paves the way for what economists call “import substitution,” a clunky way to say that consumers switch to buying less pricey products produced at home instead of imported goods.

A year after his 700-page opus "Capital in the Twenty-First Century" stormed to the top of America's best-seller lists, Thomas Piketty is out with a new argument about income inequality. It may prove more controversial than his book, which continues to generate debate in political and economic circles. The new argument, which Piketty spelled out recently in the French newspaper Le Monde, is this: Inequality is a major driver of Middle Eastern terrorism, including the Islamic State attacks on Paris earlier this month — and Western nations have themselves largely to blame for that inequality. Piketty writes that the Middle East's political and social system has been made fragile by the high concentration of oil wealth into a few countries with relatively little population. If you look at the region between Egypt and Iran — which includes Syria — you find several oil monarchies controlling between 60 and 70 percent of wealth, while housing just a bit more than 10 percent of the 300 million people living in that area. (Piketty does not specify which countries he's talking about, but judging from a study he co-authored last year on Middle East inequality, it appears he means Qatar, the United Arab Emirates, Kuwait, Saudia Arabia, Bahrain and Oman. By his numbers, they accounted for 16 percent of the region's population in 2012 and almost 60 percent of its gross domestic product.)

This concentration of so much wealth in countries with so small a share of the population, he says, makes the region "the most unequal on the planet." Within those monarchies, he continues, a small slice of people controls most of the wealth, while a large — including women and refugees — are kept in a state of "semi-slavery." Those economic conditions, he says, have become justifications for jihadists, along with the casualties of a series of wars in the region perpetuated by Western powers. His list starts with the first Gulf War, which he says resulted in allied forces returning oil "to the emirs." Though he does not spend much space connecting those ideas, the clear implication is that economic deprivation and the horrors of wars that benefited only a select few of the region's residents have, mixed together, become what he calls a "powder keg" for terrorism across the region.

Piketty is particularly scathing when he blames the inequality of the region, and the persistence of oil monarchies that perpetuate it, on the West: "These are the regimes that are militarily and politically supported by Western powers, all too happy to get some crumbs to fund their [soccer] clubs or sell some weapons. No wonder our lessons in social justice and democracy find little welcome among Middle Eastern youth." Terrorism that is rooted in inequality, Piketty continues, is best combated economically. To gain credibility with those who do not share in the region's wealth, Western countries should demonstrate that they are more concerned with the social development of the region than they are with their own financial interests and relationships with ruling families. The way to do this, he says, is to ensure that Middle eastern oil money funds "regional development," including far more education.

In the strangest election year in recent American history — one in which the Libertarian Party’s Gary Johnson couldn’t even conjure up the name of a foreign leader he “admired” while Donald Trump remained intent on building his “fat, beautiful wall” and “taking” Iraq oil — the world may be out of focus for many Americans right now.  So a little introduction to the planet we actually inhabit is in order.  Welcome to a multipolar world.  One fact stands out: Earth is no longer the property of the globe’s “sole superpower.” If you want proof, you can start by checking out Moscow’s recent role in reshaping the civil war in Syria and frustrating Washington’s agenda to overthrow President Bashar al-Assad.  And that’s just one of a number of developments that highlight America’s diminishing power globally in both the military and the diplomatic arenas.  On a peaceable note, consider the way China has successfully launched the Asian Infrastructure Investment Bank as a rival to the World Bank, not to speak of its implementation of a plan to link numerous countries in Asia and Europe to China in a vast multinational transportation and pipeline network it grandly calls the One Belt and One Road system, or the New Silk Road project.  In such developments, one can see ways in which the previously overwhelming economic power of the U.S. is gradually being challenged and curtailed internationally.

Benjamin Franklin did it. Henry Ford did it. And American life is built on the faith that others can do it, too: rise from humble origins to economic heights. “Movin’ on up,” George Jefferson-style, is not only a sitcom song but a civil religion.

But many researchers have reached a conclusion that turns conventional wisdom on its head: Americans enjoy less economic mobility than their peers in Canada and much of Western Europe. The mobility gap has been widely discussed in academic circles, but a sour season of mass unemployment and street protests has moved the discussion toward center stage. Former Senator Rick Santorum of Pennsylvania, a Republican candidate for president, warned this fall that movement “up into the middle income is actually greater, the mobility in Europe, than it is in America.” National Review, a conservative thought leader, wrote that “most Western European and English-speaking nations have higher rates of mobility.” Even Representative Paul D. Ryan, a Wisconsin Republican who argues that overall mobility remains high, recently wrote that “mobility from the very bottom up” is “where the United States lags behind.”

Liberal commentators have long emphasized class, but the attention on the right is largely new.

A recent meeting of the US Federal Reserve revealed that members of America’s central bank are not very optimistic about the future of the country’s economy. Even though the Fed is at odds regarding what to do in terms of helping economic growth — and it still remains unclear whether or not a third round of quantitative easing (QE3) is to come — the official forecast from the bank suggests that the US may be sliding into a crisis.Details from the Fed’s last meeting have been released to the public, and the minutes from that gathering reveal that the economists that oversee much of the inner-workings of the country’s fiscal policy remain concerned with the state of America.

“It seems as though the committee is moving away from quantitative easing as the central bank expects the economic activity to gradually gather pace over the coming months,” David Song, a currency analyst at DailyFX, adds to MarketWatch.“Although theFed kept the door open to expand monetary policy further, the recent rhetoric suggests that QE3 will be taken off the table as members of the board float the idea of looking at ‘new tools’ to strengthen the tepid recovery.”The minutes also reveal that 15 members of the Federal Open Market Committee had a poor outlook about America’s economy as of their last meeting, up from April’s figure of just eight.

It is becoming clear that US influence – despite its “pivot toward Asia” – is waning across the Asia Pacific region. Washington has suffered geopolitical setbacks in virtually every nation in Asia Pacific, including those now led by regimes it has meticulously organized, funded, and backed for decades. It is also waning, however, among those nations considered long-time and crucial US allies. This includes Southeast Asia’s Thailand, whom the US repeatedly reminds the world has been Washington’s ally since the Cold War and America’s war in Vietnam, and allegedly, even before that. Washington’s Waning Influence is Based on Floundering Fundamentals   However, in reality, Thailand has incrementally dismantled American influence over it, and has diversified its trade and cooperation with a large variety of nations – including China – as a means of depending on ties with no single nation in particular. Thailand’s economic trade is focused primarily within Asia, with the majority of its imports and exports divided equally between China, Japan, and ASEAN, with the West collectively representing a smaller – though not insignificant – market. It is no coincidence that Thailand’s geopolitical ties thus reflect its economic ties around the world – revealing that economic and sociopolitical realities are driving intentional relations regardless of the vast array of “soft power” means at Washington’s disposal. A look at Thailand’s military inventories reveals a similar strategy of diversifying weapon acquisitions and partnerships as well as developing systems through indigenous industry. What used to be a military dominated by American hardware and military exercises, is transforming with the acquisition of Chinese tanks, European warplanes, Middle Eastern assault rifles, Russian helicopters, and Thai-made armored vehicles – as well as joint drills held with a variety of nations, including for the first time, China. A similar shift is occurring throughout the rest of Asia, with China naturally assuming a large share of regional cooperation due to its geographic, economic, and demographic size. http://journal-neo.org/2016/10/24/us-attempts-to-shame-asia-for-caving-to-china/