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The talks appear to offer an alliance between the OPEC cartel and Russia, which together produce over 40m barrels a day of oil, 45pc of global output. Such a move would alter the strategic landscape. The details of the talks were first leaked to the Russian press. A more detailed version has since appeared in the Lebanese newspaper As-Safir, which has Hezbollah links and is hostile to the Saudis. As-Safir said Prince Bandar pledged to safeguard Russia’s naval base in Syria if the Assad regime is toppled, but he also hinted at Chechen terrorist attacks on Russia’s Winter Olympics in Sochi if there is no accord. “I can give you a guarantee to protect the Winter Olympics next year. The Chechen groups that threaten the security of the games are controlled by us,” he allegedly said. Prince Bandar went on to say that Chechens operating in Syria were a pressure tool that could be switched on an off. “These groups do not scare us. We use them in the face of the Syrian regime but they will have no role in Syria’s political future.”

The Putin-Bandar meeting was stormy, replete with warnings of a “dramatic turn” in Syria. Mr Putin was unmoved by the Saudi offer, though western pressure has escalated since then. “Our stance on Assad will never change. We believe that the Syrian regime is the best speaker on behalf of the Syrian people, and not those liver eaters,” he said, referring to footage showing a Jihadist rebel eating the heart and liver of a Syrian soldier. Prince Bandar in turn warned that there can be “no escape from the military option” if Russia declines the olive branch. Events are unfolding exactly as he foretold.

In March 2013, U.S. Secretary of State John Kerry demanded that Iraq “stops the arms flow to Syria”, while U.S. weapons were flowing to ISIS via Saudi Arabia into Iraq and Jordan. On Monday, April 22, 2013, 27 of the 28 E.U. foreign ministers agreed to lift the ban on the import of Syrian oil from opposition-held territories to allow the “opposition” to finance part of its campaign. “ISIS that was supposed to control [the region around] Deir Ez-Zor. [Turkish Energy Minister Taner] Yildiz and [Kurdish] Energy Minister Ashti] Hawrami were to make sure the oil could flow via the Kirkuk – Ceyhan [pipeline];… Ankara put al-Maliki under a lot of pressure about the Kurdish autonomy and oil, too much pressure, too early, if you’d ask me”, the source said. He added that the pressure backfired.

Previous reports confirmed that Baghdad started intercepting weapons and insurgents along the Saudi – Iraqi border, cutting off important supply lines for ISIS brigades around Deir Ez-Zor, and that Al-Maliki began complaining about a Saudi – Qatari-backed attempt to subvert the Iraqi State since late 2012. Noting my remark he replied: “That is right, but the heavy increase in attacks came in May – June 2013, after al-Maliki ordered the military to al-Anbar “. A previous article in nsnbc explains how Baghdad’s blockade caused problems in Jordan, because many of the transports of weapons, fighters and munitions had to be rerouted via Jordan. The Hariri insider added that the oil fields should have been under ISIS control by August 2013, but that the plan failed for two reasons. The UK withdrew its support for the bombing of Syria. That in turn enabled the Syrian army to dislodge both ISIS and Jabhat al-Nusrah from Deir Ez-Zor in August.

“The situation was a disaster because in June Hariri, Yidiz, Hawrami, Scowcroft, and everybody was ready to talk about how to share the oil between the U.S., Turkey and E.U.. The Summit in November should have dealt with a fait accompli”, the Hariri source stressed, adding that Washington put a gun to al-Maliki’s head when he was invited to the White House.

“Certain circles in Washington put a hell of a lot of pressure on Obama to put a gun to al-Maliki’s head”, said the Hariri source, adding that “time was running out and Obama was hesitant”. Asked what he meant with “time was running out” and if he could specify who it was that pushed Obama, he said: “Barzani was losing his grip in the North (Kurdish Iraq); the election [in September] was a setback. All plans for distributing Iraqi oil via Turkey and for sidelining Baghdad were set between Kirkuk and Ankara in early November… “Who exactly pressured Obama? I don’t know who delivered the message to Obama. I suspect Kerry had a word. It’s more important from where the message came, Kissinger, Scowcroft, Nuland and the Keagan clan, Stavridis, Petreaus, Riccardione, and the neo-con crowd at the [Atlantic] Council. … As far as I know ´someone` told Obama that he’d better pressure al-Maliki to go along with Kurdish autonomy by November or else. Who exactly ´advised` Obama is not as important as the fact that those people let him know that they would go ahead, with, or without him”.

Asked whether he knew details, how the final green light for the ISIS campaign was given, he said: ” Behind closed doors, in the presence of both Scowcroft, Hariri, and a couple of other people”. To my question “if he could be more specific” he replied “I could; I want to stay alive you know; Riccardione was tasked with the operation that day”. Noting that a prominent member of Saudi Arabia’s royal family, Prince Abdul Rachman al-Faisal has been named as the one being “in command” of the ISIS brigades, and if he could either confirm or deny, he nodded, adding that “the Prince” is responsible for financing the operation and for part of the command structure, but that the operations headquarter is the U.S. Embassy in Ankara Turkey. “As far as I know, nothing moves without Ambassador Riccardione”, he added.

The green light for the use of ISIS brigades to carve up Iraq, widen the Syria conflict into a greater Middle East war and to throw Iran off-balance was given behind closed doors at the Atlantic Council meeting in Turkey, in November 2013, told a source close to Saudi – Lebanese billionaire Saad Hariri, adding that the U.S. Embassy in Ankara is the operation’s headquarter.

The Islamic Republic News Agency quoted General Hajizadeh as saying "if any form of incident happens, Iran's ground-to-ground missiles will rain like thunderbolts upon the aggressors."

There are two problems with this. First: Massoud Barzani is no longer president of the KRG. His mandate ran out and the parliament refused to prolong it. Second: Mosul and its Bashiqa area are not part of the KRG. Barzani making a deal about it is like him making a deal about Paris. The Iraqi government and all major Iraqi parties see the Turkish invasion as a hostile act against their country. Abadi demanded the immediate withdrawal of the Turkish forces but it is unlikely that Turkey will act on that. Some Iraqi politicians have called for the immediate dispatch of the Iraqi air force to bomb the Turks near Mosul. That would probably the best solution right now but the U.S. installed Premier Abadi is too timid to go for such strikes. The thinking in Baghdad is that Turkey can be kicked out after the Islamic State is defeated. But this thinking gives Turkey only more reason to keep the Islamic State alive and use it for its own purpose. The cancer should be routed now as it is still small. Barzani's Kurdistan is so broke that is has even confiscated foreign bank accounts to pay some bills. That may be the reason why Barzani agreed to the deal now. But the roots run deeper. Barzani is illegally selling oil that belongs to the Iraqi government to Turkey. The Barzani family occupies  not only the presidential office in the KRG but also the prime minister position and the local secret services. It is running the oil business and gets a big share of everything else. On the Turkish side the oil deal is handled within the family of President Erdogan. His son in law, now energy minister, had the exclusive right to transport the Kurdish oil through Turkey. Erdogan's son controls the shipping company that transports the oil over sea to the customer, most often Israel. The oil under the control of the Islamic State in Iraq passes the exactly same route. These are businesses that generate hundreds of millions per year.

It is unlikely that U.S., if it is not behinds Turkey new escapade, will do anything about it. The best Iraq could do now is to ask the Russians for their active military support. The Turks insisted on their sovereignty when they ambushed a Russian jet that brushed its border but had no intend of harming Turkey. Iraq should likewise insist on its sovereignty, ask Russia for help and immediately kick the Turks out. The longer it waits the bigger the risk that Turkey will eventually own Mosul.

Meyssan claims that the Syria strategy of Erdoğan was initially secretly developed in coordination with former French Foreign Minister Alain Juppé and Erdoğan’s then Foreign Minister Ahmet Davutoğlu, in 2011, after Juppe won a hesitant Erdoğan to the idea of supporting the attack on traditional Turkish ally Syria in return for a promise of French support for Turkish membership in the EU. France later backed out, leaving Erdoğan to continue the Syrian bloodbath largely on his own using ISIS. Gen. John R. Allen, an opponent of Obama’s Iran peace strategy, now US diplomatic envoy coordinating the coalition against the Islamic State, exceeded his authorized role after meeting with Erdoğan and “promised to create a « no-fly zone » ninety miles wide, over Syrian territory, along the whole border with Turkey, supposedly intended to help Syrian refugees fleeing from their government, but in reality to apply the « Juppé-Wright plan ». The Turkish Prime Minister, Ahmet Davutoğlu, revealed US support for the project on the TV channel A Haber by launching a bombing raid against the PKK.” Meyssan adds. There are never winners in war and Erdoğan’s war against Syria’s Assad demonstrates that in bold. Turkey and the world deserve better. Ahmet Davutoğlu’s famous “Zero Problems With Neighbors” foreign policy has been turned into massive problems with all neighbors due to the foolish ambitions of Erdoğan and his gang.

Bloomberg's dready summary of the US economy is generally spot on, and is to be expected when any nation finally leaves, voluntarily or otherwise, the stranglehold of a global reserve currency. What Bloomberg failed to account for is what happens to the remainder of the Petrodollar world. Here is what we said last time: Outside from the domestic economic impact within EMs due to the downward oil price shock, we believe that the implications for financial market liquidity via the reduced recycling of petrodollars should not be underestimated. Because energy exporters do not fully invest their export receipts and effectively ‘save’ a considerable portion of their income, these surplus funds find their way back into bank deposits (fuelling the loan market) as well as into financial markets and other assets. This capital has helped fund debt among importers, helping to boost overall growth as well as other financial markets liquidity conditions. ... [T]his year, we expect that incremental liquidity typically provided by such recycled flows will be markedly reduced, estimating that direct and other capital outflows from energy exporters will have declined by USD253bn YoY. Of course, these economies also receive inward capital, so on a net basis, the additional capital provided externally is much lower. This year, we expect that net capital flows will be negative for EM, representing the first net inflow of capital (USD8bn) for the first time in eighteen years. This compares with USD60bn last year, which itself was down from USD248bn in 2012. At its peak, recycled EM petro dollars amounted to USD511bn back in 2006. The declines seen since 2006 not only reflect the changed global environment, but also the propensity of underlying exporters to begin investing the money domestically rather than save. The implications for financial markets liquidity - not to mention related downward pressure on US Treasury yields – is negative.

Considering the wildly violent moves we have seen so far in the market confirming just how little liquidity is left in the market, and of course, the absolutely collapse in Treasury yields, with the 30 Year just hitting a record low, this prediction has been borne out precisely as expected. And now, we await to see which other country will follow Russia out of the Petrodollar next, and what impact that will have not only on the world's reserve currency, on US Treasury rates, and on the most financialized commodity as this chart demonstrates...

... but on what is most important to developed world central planners everywhere: asset prices levels, and specifically what happens when the sellers emerge into what is rapidly shaping up as the most illiquid market in history.

Granted, there's no avoiding a significant drop in Russians' living standards because of accelerating inflation. The economics ministry in Moscow predicts real wages will fall by 9 percent this year -- which, Aslund wrote, means that "for the first time after 15 years in power," Russian President Vladimir Putin "will have to face a majority of the Russian people experiencing a sharply declining standard of living." So far, though, Russians have taken the initial shock of devaluation and accompanying inflation largely in stride. The latest poll from the independent Levada Center, conducted between Feb. 20 and Feb. 23, actually shows an uptick in Putin's approval rating -- to 86 percent from 85 percent in January.  It's time to bury the expectation that Russia will fall apart economically under pressure from falling oil prices and economic sanctions, and that Russians, angered by a drop in their living standards, will rise up and sweep Putin out of office. Western powers face a tough choice: Settle for a lengthy siege and ratchet up the sanctions despite the progress in Ukraine, or start looking for ways to restart dialogue with Russia, a country that just won't go away.

Here’s a clip from an article at Testosterone Pit that sums it up nicely: “Sergei Glazyev, the most hardline of Putin’s advisors, sketched the retaliation strategy: Drop the dollar, sell US Treasuries, encourage Russian companies to default on their dollar-denominated debts, and create an alternative currency system with the BRICS and hydrocarbon producers like Venezuela and Iran… Putin’s ally and trusted friend, Rosneft president Igor Sechin…suggested that it was “advisable to create an international stock-exchange for the participating countries, where transactions could be registered with the use of regional currencies.” (From Now On, No Compromises Are Possible For Russia, Testosterone Pit)

As the US continues to abuse its power, these changes become more and more necessary. Foreign governments must form new alliances in order to abandon the present system–the “dollar system”–and establish greater parity between nation-states, the very nation-states that Washington is destroying one-by-one to establish its ghoulish vision of global corporate utopia. The only way to derail that project is by exposing the glaring weakness in the system itself, which is the use of an international currency that is backed by $15 trillion in government debt, $4 trillion in Federal Reserve debt, and trillions more in unpaid and unpayable federal obligations. Whatever steps Moscow takes to abort the current system and replace the world’s reserve currency with money that represents a fair store of value, should be applauded. Washington’s reckless and homicidal behavior around the world make it particularly unsuitable as the de facto steward of the global financial system or to enjoy seigniorage, which allows the US to play banker to the rest of the world. The dollar is the foundation upon which rests the three pillars of imperial strength; political, economic and military. Remove that foundation and the entire edifice comes crashing to earth. Having abused that power, by killing and maiming millions of people across the planet; the world needs to transition to another, more benign way of consummating its business transactions, preferably a currency that is not backed by the blood and misery of innocent victims.

Paul Volcker summed up the feelings of many dollar-critics in 2010 when he had this to say: “The growing sense around much of the world is that we have lost both relative economic strength and more important, we have lost a coherent successful governing model to be emulated by the rest of the world. Instead, we’re faced with broken financial markets, underperformance of our economy and a fractious political climate.” America is irreparably broken and Washington is a moral swamp. The world needs regime change; new leaders, new direction and a different system.

In our last article, we tried to draw attention to the role of big oil in the present crisis. Author Nafeez Ahmed expands on that theme in a “must read” article in Monday’s Guardian. Check out this brief excerpt from Ahmed’s piece titled “Ukraine crisis is about Great Power oil, gas pipeline rivalry”: “Ukraine is increasingly perceived to be critically situated in the emerging battle to dominate energy transport corridors linking the oil and natural gas reserves of the Caspian basin to European markets… Considerable competition has already emerged over the construction of pipelines. Whether Ukraine will provide alternative routes helping to diversify access, as the West would prefer, or ‘find itself forced to play the role of a Russian subsidiary,’ remains to be seen.” (Guardian) The western oil giants have been playing “catch up” for more than a decade with Putin checkmating them at every turn. As it happens, the wily KGB alum has turned out to be a better businessman than any of his competitors, essentially whooping them at their own game, using the free market to extend his network of pipelines across Central Asia and into Europe. That’s what the current crisis is all about.

Now let’s take a look at Russian fundamentals. Russia’s government debt totals only 13.4% of its GDP. Its budget deficit in relation to GDP is only 0.5%.  If we assume a US GDP of $16.8 trillion (the figure for 2013), the US budget deficit totals 4% of GDP, versus 0.5% for Russia. The Fed is essentially a private corporation owned by regional US private banks, although it passes itself off as a state institution. US publicly held debt is equal to a whopping 74% of GDP in fiscal year 2014. Russia’s is only 13.4%. The declaration of economic war by the US and EU on Russia – via the run on the ruble and the oil derivative attack – was essentially a derivatives racket. Derivatives – in theory – may be multiplied to infinity. Derivative operators attacked both the ruble and oil prices in order to destroy the Russian economy. The problem is, the Russian economy is more soundly financed than America's.

So yes – it will be all about further moves towards the integration of Eurasia as the US is progressively squeezed out of Eurasia. We will see a complex geostrategic interplay progressively undermining the hegemony of the US dollar as a reserve currency and, most of all, the petrodollar. For all the immense challenges the Chinese face, all over Beijing it's easy to detect unmistakable signs of a self-assured, self-confident, fully emerged commercial superpower. President Xi Jinping and the current leadership will keep investing heavily in the urbanization drive and the fight against corruption, including at the highest levels of the Chinese Communist Party (CCP). Internationally, the Chinese will accelerate their overwhelming push for new 'Silk Roads' – both overland and maritime – which will underpin the long-term Chinese master strategy of unifying Eurasia with trade and commerce.

Russia does not need to import any raw materials. Russia can easily reverse-engineer virtually any imported technology if it needs to. Most of all, Russia can generate — from the sale of raw materials – enough credit in US dollars or euros. Russia's sale of its energy wealth — or sophisticated military gear — may decline. However, they will bring in the same amount of rubles — as the ruble has also declined.  Replacing imports with domestic Russian manufacturing makes total sense. There will be an inevitable “adjustment” phase – but that won’t take long. German car manufacturers, for instance, can no longer sell their cars in Russia due to the ruble's decline. This means they will have to relocate their factories to Russia. If they don’t, Asia – from South Korea to China — will blow them out of the market.

The EU's declaration of economic war against Russia makes no sense whatsoever. Russia controls, directly or indirectly, most of the oil and natural gas between Russia and China: roughly 25% of the world's supply. The Middle East is bound to remain a mess. Africa is unstable. The EU is doing everything it can to cut itself off from its most stable supply of hydrocarbons, prompting Moscow to redirect energy to China and the rest of Asia. What a gift for Beijing – as it minimizes the alarm about the US Navy playing with "containment" across the high seas.  Still, an unspoken axiom in Beijing is that the Chinese remain extremely worried about an Empire of Chaos losing more and more control, and dictating the stormy terms of the relationship between the EU and Russia. The bottom line is that Beijing would never allow itself to be in a position where the US could interfere with China's energy imports – as was the case with Japan in July 1941 when the US declared war by imposing an oil embargo, cutting off 92% of Japanese oil imports. Everyone knows a key plank of China’s spectacular surge in industrial power was the requirement for manufacturers to produce in China. If Russia did the same, its economy would be growing at a rate of over 5% per year in no time. It could grow even more if bank credit was tied only to productive investment.

Now imagine Russia and China jointly investing in a new gold, oil and natural resource-backed monetary union as a crucial alternative to the failed debt "democracy" model pushed by the Masters of the Universe on Wall Street, the Western central bank cartel, and neoliberal politicians. They would be showing the Global South that financing prosperity and improved standards of living by saddling future generations with debt was never meant to work in the first place. Until then, a storm will be threatening our very lives – today and tomorrow. The Masters of the Universe/Washington combo won’t give up their strategy to make Russia a pariah state cut off from trade, the transfer of funds, banking and Western credit markets and thus prone to regime change. Further on down the road, if all goes according to plan, their target will be (who else) China. And Beijing knows it. Meanwhile, expect a few bombshells to shake the EU to its foundations. Time may be running out – but for the EU, not Russia. Still, the overall trend won’t be altered; the Empire of Chaos is slowly but surely being squeezed out of Eurasia.