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Paul Merrell

US manoeuvre in South China Sea leaves little wiggle room with China | World news | The... - 0 views

  • Barack Obama’s decision to send a US guided missile destroyer into disputed waters off the Spratly islands in the South China Sea on Tuesday has provoked predictable outpourings of rage and veiled threats from Beijing – but nothing, yet, in the way of a military response. The worry now is that the confrontation will catch fire, escalate and spread. Both China, which claims the Spratlys as its own, and the US, which does not recognise Beijing’s sovereignty, have boxed themselves into a rhetorical and tactical corner. With the Pentagon insisting it will repeat and extend such naval patrols at will, and with the People’s Liberation Army Navy determined to stop them, it is feared a head-on collision cannot be far away. China’s heated response to Tuesday’s manoeuvre by the USS Lassen off the Spratlys’ Mischief and Subi reefs, where Beijing is controversially building military airstrips and lighthouses on reclaimed land, left it little wiggle room. The American warship had been tracked and warned off, officials said, adding that what it termed an illegal incursion was a “threat to national sovereignty” and a deliberate provocation that could backfire.
  • Anticipating the US move earlier this month, foreign ministry spokeswoman Hua Chunying said: “China will never allow any country to violate China’s territorial waters and airspace in the South China Sea.” If ever a government has publicly laid down a red line, this is it. And Obama just crossed it. Having personally failed to find a compromise in White House talks with Xi Jinping, China’s president, last month, Obama has upped the ante. As is also the case with Xi, it is now all but impossible to envisage an American climbdown without enormous loss of face and prestige. By deploying a powerful warship, by declining to inform China in advance, and by insisting the US is upholding the universal principle of free navigation in international waters and will do so again whenever and wherever it wishes, Obama has deliberately challenged Beijing to do its worst.
  • China is in dispute over other South China Sea islands and reefs with several countries that are all more or less at one with the US on the issue, including the Philippines, Vietnam and Malaysia. Renewed trouble could flare up in any of these places. One possibility is the Scarborough Shoal, claimed by Manila, where clashes have continued on and off since 2012. Another obvious pressure point is the Senkaku islands (Diaoyu in Chinese) in the East China Sea, claimed by both Japan and China. In 2013 Beijing upped the ante, unilaterally declaring an air exclusion, or identification, zone in the area, which the US promptly breached with B52 bombers. This dispute forms part of the background to the military buildup ordered by Japan’s hawkish prime minister, Shinzo Abe, who set a record £27bn defence budget this year. (China’s military budget is roughly £90bn; that of the US is about £378bn).
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  • Chinese retaliation, when it comes, and it surely must, may not centre specifically on the Spratlys. There are plenty of other potential troublespots and flashpoints where Beijing might seek to give the Americans pause. In prospect is a sort of geopolitical chain reaction. A spokesman, Lu Kang, hinted at this on Tuesday: “China hopes to use peaceful means to resolve all the disputes, but if China has to make a response then the timing, method and tempo of the response will be made in accordance with China’s wishes and needs.”
  • Reacting to the perceived China threat, Abe is extending Okinawa’s defences and getting involved in South China Sea patrols in support of Washington. Japan also strengthened defence and security ties with Britain – a development that now makes David Cameron’s courtship of Beijing seem all the more incongruous. Taiwan is another powder keg that could be ignited by widening US-China confrontation. While Beijing regards Taiwan as a renegade province and seeks its return, the present-day status quo is underwritten by US military might.
  • US-China naval and aerial rivalry could expand even further afield. China is busy building a blue water fleet (a maritime force capable of operating across the deep waters of open oceans) including aircraft carriers, with the aim of challenging US dominance in the eastern Pacific. Chinese naval ships recently showed up off the Aleutian islands during an Obama visit to Alaska, the mineral-rich Arctic being another possible theatre. Meanwhile, regional western allies such as Australia have serious cause for concern that escalating superpower friction could draw them in.
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    The latest Obama idiocy.
Gary Edwards

Jim Kunstler's 2014 Forecast - Burning Down The House | Zero Hedge - 0 views

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    Incredible must read analysis. Take away: the world is going to go "medevil". It's the only way out of this mess. Since the zero hedge layout is so bad, i'm going to post as much of the article as Diigo will allow: Jim Kunstler's 2014 Forecast - Burning Down The House Submitted by Tyler Durden on 01/06/2014 19:36 -0500 Submitted by James H. Kunstler of Kunstler.com , Many of us in the Long Emergency crowd and like-minded brother-and-sisterhoods remain perplexed by the amazing stasis in our national life, despite the gathering tsunami of forces arrayed to rock our economy, our culture, and our politics. Nothing has yielded to these forces already in motion, so far. Nothing changes, nothing gives, yet. It's like being buried alive in Jell-O. It's embarrassing to appear so out-of-tune with the consensus, but we persevere like good soldiers in a just war. Paper and digital markets levitate, central banks pull out all the stops of their magical reality-tweaking machine to manipulate everything, accounting fraud pervades public and private enterprise, everything is mis-priced, all official statistics are lies of one kind or another, the regulating authorities sit on their hands, lost in raptures of online pornography (or dreams of future employment at Goldman Sachs), the news media sprinkles wishful-thinking propaganda about a mythical "recovery" and the "shale gas miracle" on a credulous public desperate to believe, the routine swindles of medicine get more cruel and blatant each month, a tiny cohort of financial vampire squids suck in all the nominal wealth of society, and everybody else is left whirling down the drain of posterity in a vortex of diminishing returns and scuttled expectations. Life in the USA is like living in a broken-down, cob-jobbed, vermin-infested house that needs to be gutted, disinfected, and rebuilt - with the hope that it might come out of the restoration process retaining the better qualities of our heritage.
Paul Merrell

China stakes claim in Central and Southeast Europe | Business New Europe - 0 views

  • A Chinese agreement to finance a high-speed railway from Belgrade to Bucharest was one of around $10bn worth of investments, mainly in the energy and infrastructure sectors, signed during a China-Central and Eastern Europe summit this week. By funding the railway, Beijing hopes to establish a rapid connection from Greece’s Pireaus Port through the Balkans to the EU member states of Central Europe. Several agreements on the €1.5bn railway, which will be financed by soft loans from state-owned China Exim Bank, were signed between China, Hungary and Serbia on December 17. When the line is operational, the travel time between Belgrade and Budapest will be slashed from the current eight hours to just 2.4 hours. Macedonian counterpart Nikola Gruevski was also in attendance as there are plans to extend the line south to Macedonia and Greece in future. Chinese Prime Minister Li Keqiang, who headed a 200-strong delegation to Belgrade, said he expected the line would benefit both China and the countries of Central and Eastern Europe and the EU, according to a Serbian government statement.
  • Chinese shipping giant Cosco Pacific took over the management rights to half of Piraeus port and is now expanding two container terminals under a 35-year concession agreement, with the aim of turning the Greek port into one of Europe’s top five container ports. However, to take full advantage of Cosco’s investment in Piraeus and its potential to become a gateway to the CEE region, investments into transport links across the Balkans are needed. "We will propose construction of a rapid land and maritime route based on the Budapest-Belgrade railroad and the Greek port of Piraeus to improve regional connectivity," Li told journalists in advance of the summit, South China Morning Post reported. Investments into infrastructure to transport raw materials into China and Chinese manufactured goods to foreign markets is nothing new. Closer to home, Beijing is looking to fund a railway across Central Asia to create a direct rail link between its factories and the massive wholesale bazaars of Kyrgyzstan and Uzbekistan. Further afield, in May 2014, China signed an agreement in Kenya to build a new line from Mombasa to Nairobi that will extend to four other East African states in future.
  • While land rail routes across Eurasia to Europe are also being developed, sea shipping remains the cheapest route from the Far East to Europe, and Piraeus is a convenient entry point to the continent. While growth in the region has been patchy since the recent global economic crisis, in the longer-term the EU member states of Central and Eastern Europe and future entrants from the Balkans are expected to converge with longer-established EU members from Western Europe in terms of spending power. Since 2012, when the first China-CEE summit was held in Warsaw, Chinese attention on the region has steadily increased, with a focus on energy and infrastructure. Aside from the access to new markets, there are further commercial benefits for China, as Chinese companies are selected for lucrative construction contracts on projects funded by Chinese state-owned banks. On December 16, the opening day of the summit, Li told the 16 regional leaders to attend that China would launch a $3bn investment fund for the region.
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  • Also on December 16 Albania signed a deal with Exim Bank on funding for the completion of construction works on the Arber motorway that links the capital Tirana with Macedonia. In the energy sector, Serbian and Chinese officials have signed a loan agreement for the second stage of the Kostolac B thermal power project, which includes the construction of a new 350MW plant and the expansion of the adjacent Drmno open-pit coal mine. The value of the project is expected to be $715mn, of which $608mn will come from a 20-year China Exim Bank loan. In neighbouring Bosnia, Eximbank has signed an agreement with the Bosnian Federation government for a €667.8mn credit to fund construction of the 450MW unit 7 at the thermal power plant Tuzla. China's Gezhouba Group is expected to build the unit.
  • The timing of the summit, amid a sharp falling off of Russia’s influence, may also have helped China extend its influence in the region. With some exceptions, notably Serbia, most of the would-be EU member states in Southeast Europe have opted to join EU and US sanctions against Russia over Ukraine. Tit for tat sanctions imposed by Moscow caused trade between Eastern Europe and Russia to drop, a trend that is likely to continue amid the new economic crisis in Russia. Meanwhile, in a further retrenchment from the region, Russian President Vladimir Putin announced on December 1 that Russia will scrap the planned South Stream pipeline that would have supplies numerous states across the region with gas. China, meanwhile, has no political axe to grind in Eastern Europe, but hopes to take advantage of Russia’s weakness to make further inroads commercially. Poland and other countries in the region are, for example, looking to China as a potential market for food products following the Russian embargo. This would add to already booming trade ties. According to Chinese Commerce Minister Gao Hucheng, trade between China and Eastern Europe may top $60bn in 2014 - five times its 2003 level, AFP reported.
Paul Merrell

Dangerous Crossroads: US-NATO To Deploy Ground Troops, Conduct Large Scale Naval Exerci... - 0 views

  • The World is at a dangerous Crossroads. The Western military alliance is in an advanced state of readiness. And so is Russia. Russia is heralded as the “Aggressor”. US-NATO military confrontation with Russia is contemplated. Enabling legislation in the US Senate under “The Russian Aggression Prevention Act” (RAPA) has “set the US on a path towards direct military conflict with Russia in Ukraine.”  Any US-Russian war is likely to quickly escalate into a nuclear war, since neither the US nor Russia would be willing to admit defeat, both have many thousands of nuclear weapons ready for instant use, and both rely upon Counterforce military doctrine that tasks their military, in the event of war, to preemptively destroy the nuclear forces of the enemy. (See Steven Starr, Global Research, August 22, 2014) The Russian Aggression Prevention Act (RAPA) is the culmination of more than twenty years of US-NATO war preparations, which consist in the military encirclement of both Russia and China:
  • On July 24, in consultation with the Pentagon, NATO’s Europe commander General Philip Breedlove called for “stockpiling a base in Poland with enough weapons, ammunition and other supplies to support a rapid deployment of thousands of troops against Russia”.(RT, July 24, 2014). According to General Breedlove, NATO needs “pre-positioned supplies, pre-positioned capabilities and a basing area ready to rapidly accept follow-on forces”: “He plans to recommend placing supplies — weapons, ammunition and ration packs — at the headquarters to enable a sudden influx of thousands of Nato troops” (Times, August 22, 2014, emphasis added) Breedlove’s “Blitzkrieg scenario” is to be presented at NATO’s summit in Wales in early September, according to The London Times.  It is a “copy and paste” text broadly consistent with the  Russian Aggression Prevention Act (RAPA) which directs President Obama to:
  • “(1) implement a plan for increasing U.S. and NATO support for the armed forces of Poland, Estonia, Lithuania, and Latvia, and other NATO member-states; and (2) direct the U.S. Permanent Representative to NATO to seek consideration for permanently basing NATO forces in such countries.” (S.2277 — 113th Congress (2013-2014)) More generally, a scenario of military escalation prevails with both sides involved in extensive war games. In turn, the structure of US sponsored military alliances plays a crucial role in war planning. We are dealing with a formidable military force involving a global alliance of 28 NATO member states. In turn, the US as well as NATO have established beyond the “Atlantic Region” a network of bilateral military alliances with “partner” countries directed against Russia, China, Iran and North Korea.
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  • t is worth noting that FLEETEX is one among several US-NATO naval war games directed against an unnamed enemy. In July, NATO conducted naval exercises in the Black sea, in an area contiguous to Russia’s maritime borders.
  • NATO’s “Breeze” formally hosted by Bulgaria took place from July 4 to July 13, with the participation of naval vessels from Greece, Italy, Romania, Turkey, the U.K. and the U.S. The underlying scenario was the “”destruction of enemy ships in the sea and organization of air defense of naval groups and coastal infrastructure.” The exercises were “aimed at improving the tactical compatibility and collaboration among naval forces of the alliance’s member states…” (See Atlantic Council , see also Russia, U.S. ships sail in competing Black Sea exercises, July 7, Navy Times 2014) Ironically, NATO’s July Black Sea games started on exactly the same day as those of the “unnamed enemy”[Russia], involving its Crimea Black sea fleet of some 20 war ships and aircraft:
  • Russia has made it clear they don’t welcome NATO’s presence in the Black Sea. Russia’s navy let it be known that it is following the exercises with reconnaissance aircraft and surveillance ships. “The aviation of the Black Sea Fleet is paying special attention to the missile cruiser USS Vella Gulf which, though not formally the flagship of the ‘Breeze’ exercises, effectively is leading them,” a Russian naval source told NTV. (Ibid)
  • Since 2006, the US has been building up its weapons arsenal in Poland on Russia’s Western border (Kalingrad). The deployment of US forces in Poland was initiated  in July 2010 (within 40 miles from the border), with a view to training Polish forces in the use of US made Patriot missiles. (Stars and Stripes, 23 July 2010). In recent developments, the Pentagon announced in early August the deployment of US troops and National Guard forces to Ukraine as part of a military training operation. US-NATO is also planning further deployments of ground forces (as described by NATO General Breedlove) in Poland, Latvia, Estonia and Lithuania as well as in Georgia and Azerbaijan on Russia’s southern border. These deployments which are envisaged in the draft text of the “Russian Aggression Prevention Act” (RAPA) (S.2277 — 113th Congress (2013-2014)) are also part of a NATO “defensive” strategy in the case of a “Russian invasion”: Russia’s annexation of Crimea and the conflict in eastern Ukraine have alarmed Latvia, Estonia and Lithuania – like Ukraine, former Soviet republics with Russian-speaking minorities. NATO’s 28 leaders are expected to discuss plans to reassure Poland and the Baltics at a summit in Wales on Sept. 4-5.
  • Deployment on Russia’s Southern border is to be coordinated under a three country agreement signed on August 22, 2014 by Turkey, Georgia and Azerbaijan: Following the trilateral meeting of Azerbaijani, Turkish and Georgian defense ministers, Tbilisi announced that the three countries are interested in working out a plan to strengthen the defense capability. “The representatives of the governments of these three countries start to think about working out a plan to strengthen the defense capability,” Alasania said, adding that this is in the interests of Europe and NATO.“Because, this transit route [Baku-Tbilisi-Kars] is used to transport the alliance’s cargo to Afghanistan,” he said. Alasania also noted that these actions are not directed against anyone. (See Azeri News, August 22, 2014, emphasis added)
  • In the Far-east, Russia’s borders are also threatened by Obama’s “Pivot to Asia”. The “Pivot to Asia” from a military standpoint consists in extending US military deployments in the Asia-Pacific as well as harnessing the participation of Washington’s allies in the region, including Japan, South Korea and Australia. These countries have signed bilateral military cooperation agreements with Washington. As US allies, they are slated to be involved in Pentagon war plans directed against Russia, China and North Korea: Japan and South Korea are also both part of a grand U.S. military project involving the global stationing of missile systems and rapid military forces, as envisioned during the Reagan Administration. (Mahdi Darius Nazemroaya, Global Military Alliance: Encircling Russia and China, Global Research, October 5, 2007) This Pentagon strategy of military encirclement requires both centralized military decision making (Pentagon, USSTRATCOM) as well coordination with NATO and the various US regional commands.
  • On August 12, the US and Australia signed a military agreement allowing for the deployment of US troops in Australia. This agreement is part of Obama’s Pivot to Asia: The U.S. and Australia signed an agreement Tuesday [August 12] that will allow the two countries’ militaries to train and work better together as U.S. Marines and airmen deploy in and out of the country. “This long-term agreement will broaden and deepen our alliance’s contributions to regional security,” U.S. Defense Secretary Chuck Hagel said Tuesday. He described the U.S.-Australia alliance as the “bedrock” for stability in the Asia-Pacific region.
  • Ironically, coinciding with the announcement of the US-Australia agreement (August 12), Moscow announced that it would be conducting naval exercises in the Kuril Islands of the Pacific Ocean (which are claimed by Japan): “Exercises began involving military units in the region, which have been deployed to the Kuril Islands,” Colonel Alexander Gordeyev, a spokesman for Russia’s Eastern Military District, told news agency Interfax. (Moscow Times, August 12, 2014)
  • While this renewed East-West confrontation has mistakenly been labelled a “New Cold War”, none of the safeguards of The Cold War era prevail. International diplomacy has collapsed. Russia has been excluded from the Group of Eight (G-8), which has reverted to the G-7 (Group of Seven Nations). There is no “Cold War East-West dialogue” between competing superpowers geared towards avoiding military confrontation. In turn, the United Nations Security Council has become a de facto mouthpiece of the U.S. State Department. US-NATO will not, however, be able to win a conventional war against Russia, with the danger that military confrontation will lead to a nuclear war. In the post-Cold war era, however, nuclear weapons are no longer considered as a  “weapon of last resort” under the Cold War doctrine of “Mutual Assured Destruction” (MAD).  Quite the opposite. nuclear weapons are heralded by the Pentagon as “harmless to the surrounding civilian population because the explosion is underground”. In 2002, the U.S. Senate gave the green light for the use of nuclear weapons in the conventional war theater.  Nukes are part of the “military toolbox” to be used alongside conventional weapons.
  • When war becomes peace, the world is turned upside down.  In a bitter irony, nukes are now upheld by Washington as “instruments of peace”. In addition to nuclear weapons, the use of chemical weapons is also envisaged. Methods of non-conventional warfare are also contemplated by US-NATO including financial warfare, trade sanctions, covert ops, cyberwarfare, geoengineering and environmental modification technologies (ENMOD). But Russia also has  extensive capabilities in these areas.
  • The timeline towards war with Russia has been set. The Wales NATO venue on September 4-5, 2014 is of crucial importance. What we are dealing with is a World War III Scenario, which is the object of the Wales NATO Summit, hosted by Britain’s Prime Minister David Cameron. The agenda of this meeting has already been set by Washington, NATO and the British government. It requires, according to PM David Cameron in a letter addressed to heads of State and heads of government of NATO member states ahead of the Summit that: “Leaders [of NATO countries] must review NATO’s long term relationship with Russia at the summit in response to Russia’s illegal actions in Ukraine. And the PM wants to use the summit to agree how NATO will sustain a robust presence in Eastern Europe in the coming months to provide reassurance to allies there, building on work already underway in NATO.” (See PM writes to NATO leaders ahead of NATO Summit Wales 2014)
Paul Merrell

Turmoil in Hong Kong, Terrorism in Xinjiang: America's Covert War on China | Global Res... - 0 views

  • What is more troubling is the greater geopolitical agenda driving both of these seemingly “internal” conflicts – and that they both lead back to a single source beyond China’s borders. With the so-called “Islamic State” (ISIS) now implicated in receiving, training, and employing terrorists from China’s Xinjiang province, and considering the fact that ISIS is the result of an intentional, engineered proxy war the US and its allies are waging in the Middle East, along with the fact that the unrest in Hong Kong is also traced back to Washington and London, presents a narrative of an ongoing confrontation between East and West being fought on the battlefield of fourth generation warfare.
  • If one was asked to name a global-spanning military and intelligence operation opposed to Syria, Iran, Russia, and China, they might say the US Central Intelligence Agency (CIA) and the US Government – and they would be right. But they could also easily answer by saying the “Islamic State” or ISIS/ISIL as it is also known. This is especially true after revelations surfaced that US-backed Uyghur separatists in China’s western-most province of Xinjiang have joined ISIS for training with intentions of leading an armed rebellion against Beijing upon their return. Reuters in their article, “China militants getting IS ‘training’,” would claim: Chinese militants from the western region of Xinjiang have fled from the country to get “terrorist training” from Islamic State group fighters for attacks at home, state media reported on Monday. The report was the first time state-run media had linked militants from Xinjiang, home to ethnic minority Uighur Muslims, to militants of the Islamic State group of radical Sunni Muslims.
  • However, it isn’t just China’s government that claims militants in Xinjiang seek to carve out an independent state in western China – the militants themselves have stated as much, and the United States government fully backs their agenda to do so. Indeed, first and foremost in backing the Xinjiang Uyghur separatists is the United States through the US State Department’s National Endowment for Democracy (NED). For China, the Western region referred to as “Xinjiang/East Turkistan” has its own webpage on NED’s site covering the various fronts funded by the US which include:
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  • The next step Washington appears to be taking in China is an attempts to enhance the menace of terrorists in Xinjiang. In addition to assisting US attempts to destabilize territory in China, ISIS has also threatened to launch a campaign against another US enemy – Russia – this in addition to already directly fighting Hezbollah in Lebanon, the governments of Syria and Iraq, and with ISIS claiming to be behind attacks in Egypt against the military-led government that ousted the West’s Muslim Brotherhood proxies. With both Russia and China now in ISIS’ sights, the global public must begin asking questions as to how and why ISIS just so happens to be arraying itself against all of Washington’s enemies, by-passing all of its allies including Israel, Saudi Arabia, and Qatar, and where exactly they are getting the weapons, cash, intelligence, logistical, and administrative capabilities to do so. So suspicious is ISIS’ appearance, agenda, and actions, many across the world have long-ago concluded they are simply the latest creation of the US and other Western-aligned intelligence agencies, just as Al Qaeda and the Muslim Brotherhood was before them, So loud has this narrative become, establishment newspapers like the New York Times have begun writing columns to tamp down what they are calling “conspiracy theories.”
  • This containment strategy would be updated and detailed in the 2006 Strategic Studies Institute report “String of Pearls: Meeting the Challenge of China’s Rising Power across the Asian Littoral” where it outlines China’s efforts to secure its oil lifeline from the Middle East to its shores in the South China Sea as well as means by which the US can maintain American hegemony throughout the Indian and Pacific Ocean. The premise is that, should Western foreign policy fail to entice China into participating in the “international system” as responsible stakeholders, an increasingly confrontational posture must be taken to contain the rising nation. This includes funding, arming, and backing terrorists and proxy regimes from Africa, across the Middle East, Central Asia, Southeast Asia, and even within China’s territory itself. Documented support of these movements not only include Xinjiang separatists and the leaders of “Occupy Central” in Hong Kong, but also militants and separatists in Baluchistan, Pakistan where the West seeks to disrupt a newly christened Chinese port and pipeline, as well as the machete wielding supporters of Aung San Suu Kyi in Myanmar’s Rakhine state – yet another site the Chinese hope to establish a logistical hub.
  • It is not a coincidence that ISIS is standing in for and fulfilling America’s deepest imperial aspirations from North Africa, across the Middle East, and now inching toward the borders of the West’s two largest competitors, Russia and China. Nor is it a coincidence that “Occupy Central” protesters are parroting verbatim talking points scripted in Washington earlier this year. It is no coincidence that the US State Department’s NED is found involved in every hotspot of instability and conflict both within China’s borders and beyond them. It is a documented conspiracy that is now increasingly seeing the light truth cast upon it. Whether or not that is enough to end the unnecessary barbarism and bloodshed that has resulted from the West’s hegemonic aspirations remains to be seen.
Paul Merrell

Exit South Stream, enter Turk Stream - RT Op-Edge - 0 views

  • So the EU “defeated” Putin by forcing him to cancel the South Stream pipeline. Thus ruled Western corporate media. Nonsense. Facts on the ground spell otherwise. This “Pipelineistan” gambit will continue to send massive geopolitical shockwaves all across Eurasia for quite some time. In a nutshell, a few years ago Russia devised Nord Stream – fully operational – and South Stream – still a project – to bypass unreliable Ukraine as a gas transit nation. Now Russia devised a new deal with Turkey to bypass the “non-constructive” (Putin’s words) approach of the European Commission (EC). Background is essential to understand the current game. Five years ago I was following in detail Pipelineistan’s ultimate opera – the war between rival pipelines South Stream and Nabucco. Nabucco eventually became road kill. South Stream may eventually resurrect, but only if the EC comes to its senses (don’t bet on it.)
  • The 3,600 kilometer long South Stream should be in place by 2016, branching out to Austria and the Balkans/Italy. Gazprom owns 50 percent of it - along with Italy’s ENI (20 percent), French EDF (15 percent) and German Wintershall, a subsidiary of BASF (15 percent). As it stands these European energy majors are not exactly beaming – to say the least. For months Gazprom and the EC were haggling about a solution. But in the end Brussels predictably succumbed to its own. Russia still gets to build a pipeline under the Black Sea – but now redirected to Turkey and, crucially, pumping the same amount of gas South Stream would. Not to mention Russia gets to build a new LNG (liquefied natural gas) central hub in the Mediterranean. Thus Gazprom has not spent $5 billion in vain (finance, engineering costs). The redirection makes total business sense. Turkey is Gazprom’s second biggest customer after Germany. And much bigger than Bulgaria, Hungary, and Austria combined. Russia also advances a unified gas distribution network capable of delivering natural gas from anywhere in Russia to any hub alongside Russia’s borders.
  • And as if it was needed, Russia gets yet another graphic proof that its real growth market in the future is Asia, especially China – not a fearful, stagnated, austerity-devastated, politically paralyzed EU. The evolving Russia-China strategic partnership implies Russia as complementary to China, excelling in major infrastructure projects from building dams to laying out pipelines. This is business with a sharp geopolitical reach – not ideology-drenched politics.
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  • Turkey also made a killing. It’s not only the deal with Gazprom; Moscow will build no less than Turkey’s entire nuclear industry, apart from increased soft power interaction (more trade and tourism). Most of all, Turkey is now increasingly on the verge of becoming a full member of the Shanghai Cooperation Organization (SCO); Moscow is actively lobbying for it. This means Turkey acceding to a privileged position as a major hub simultaneously in the Eurasian Economic Belt and of course the Chinese New Silk Road(s). The EU blocks Turkey? Turkey looks east. That’s Eurasian integration on the move. Washington has tried very hard to create a New Berlin Wall from the Baltics to the Black Sea to “isolate” Russia. Now comes yet another Putin judo/chess/go counterpunch – which the opponent never saw coming. And exactly across the Black Sea. A key Turkish strategic imperative is to configure itself as the indispensable energy crossroads from East to West – transiting everything from Iraqi oil to Caspian Sea gas. Oil from Azerbaijan already transits Turkey via the Bill Clinton/Zbig Brzezinski-propelled BTC (Baku-Tblisi-Ceyhan) pipeline. Turkey would also be the crossroads if a Trans-Caspian pipeline is ever built (slim chances as it stands), pumping natural gas from Turkmenistan to Azerbaijan, then transported to Turkey and finally Europe.
  • So what Putin’s judo/chess/go counterpunch accomplished with a single move is to have stupid EU sanctions once again hurt the EU. The German economy is already hurting badly because of lost Russia business. The EC brilliant “strategy” revolves around the EU’s so-called Third Energy Package, which requires that pipelines and the natural gas flowing inside them must be owned by separate companies. The target of this package has always been Gazprom – which owns pipelines in many Central and Eastern European nations. And the target within the target has always been South Stream.
  • Now it’s up to Bulgaria and Hungary – which, by the way, have always fought the EC “strategy” – to explain the fiasco to their own populations, and to keep pressing Brussels; after all they are bound to lose a fortune, not to mention get no gas, with South Stream out of the picture. So here’s the bottom line; Russia sells even more gas – to Turkey; and the EU, pressured by the US, is reduced to dancing like a bunch of headless chickens in dark Brussels corridors wondering what hit them. The Atlanticists are back to default mode – cooking up yet more sanctions while Russia is set to keep buying more and more gold.
  • This is not the endgame – far from it. In the near future, many variables will intersect. Ankara’s game may change – but that’s far from a given. President Erdogan – the Sultan of Constantinople – has certainly identified a rival Caliph, Ibrahim of ISIS/ISIL/Daesh fame, trying to steal his mojo. Thus the Sultan may flirt with mollifying his neo-Ottoman dreams and steer Turkey back to its previously ditched “zero problems with our neighbors” foreign policy doctrine. The House of Saud is like a camel in the Arctic. The House of Saud’s lethal game in Syria always boiled down to regime change so a Saudi-sponsored oil pipeline from Syria to Turkey might be built – dethroning the proposed, $10 billion Iran-Iraq-Syria “Islamic” pipeline. Now the Saudis see Russia about to supply all of Turkey’s energy needs – and then some. And “Assad must go” still won’t go.
  • US neo-cons are also sharpening their spears. As soon as early 2015 there may be a Ukrainian Freedom Act approved by the US Congress. Translation: Ukraine as a “major US non-NATO ally” which means, in practice, a NATO annexation. Next step; more turbo-charged neo-con provocation of Russia. A possible scenario is vassal/puppies such as Romania or Bulgaria – pressed by Washington – deciding to allow full access for NATO vessels into the Black Sea. Who cares this would violate the current Black Sea agreements that affect both Russia and Turkey? And then there’s a Rumsfeldian “known unknown”; how the weak Balkans will feel subordinated to the whims of Ankara. As much as Brussels keeps Greece, Bulgaria and Serbia in a strait jacket, in energy terms they will start depending on Turkey’s goodwill. For the moment, let’s appreciate the magnitude of the geopolitical shockwaves. There will be more, when we least expect them.
Paul Merrell

Donald Trump's closest advisor Steve Bannon thinks there will be war with China in the ... - 0 views

  • Donald Trump's closest advisor thinks that the US will be at war with China in the next few years. The far-right figure, who has been given unprecedented power in the White House and has suggested in the past that he supports white supremacy, suggested that the two countries are headed towards war over the South China Sea. “We’re going to war in the South China Sea in five to 10 years, aren’t we?” Mr Bannon said on his radio show in March 2016. “There’s no doubt about that. They’re taking their sandbars and making basically stationary aircraft carriers and putting missiles on those. They come here to the United States in front of our face — and you understand how important face is — and say it’s an ancient territorial sea.”
Paul Merrell

From Energy War to Currency War: America's Attack on the Russian Ruble | Global Research - 0 views

  • 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]
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  • It is because of the importance of Irano-Turkish and Russo-Turkish trade and energy ties that Ankara has had an understanding with both Russia and Iran not to let politics and their differences over the Syrian crisis get in the way of their economic ties and business relationships while Washington has tried to disrupt Irano-Turkish and Russo-Turkish trade and energy ties like it has disrupted trade ties between Russia and the EU. [9] Ankara, however, realizes that if it lets politics disrupt its economic ties with Iran and Russia that Turkey itself will become weakened and lose whatever independence it enjoys Masterfully announcing the Russian move while in Ankara, Putin also took the opportunity to ensure that there would be heated conversation inside the EU. Some would call this rubbing salt on the wounds. Knowing that profit and opportunity costs would create internal debate within Bulgaria and the EU, Putin rhetorically asked if Bulgaria was going to be economically compensated by the European Commission for the loss.
  • It is clear that Russian business and trade ties have been redirected to the People’s Republic of China and East Asia. On the occasion of the Sino-Russian mega natural gas deal, this author pointed out that this was not as much a Russian countermove to US economic pressure as it was really a long-term Russian strategy that seeks an increase in trade and ties with East Asia. [10] Vladimir Putin himself also corroborated this standpoint during the December 18 press conference mentioned earlier when he dismissed — like this author — the notion that the so-called «Russian turn to the East» was mainly the result of the crisis in Ukraine. In President Putin’s own words, the process of increasing business ties with the Chinese and East Asia «stems from the global economic processes, because the East – that is, the Asia-Pacific Region – shows faster growth than the rest of the world». [11] If this is not convincing enough that the turn towards East Asia was already in the works for Russia, then Putin makes it categorically clear as he proceeds talking at the December 18 press conference. In reference to the Sino-Russian gas deal and other Russian projects in East Asia, Putin explained the following: «The projects we are working on were planned long ago, even before the most recent problems occurred in the global or Russian economy. We are simply implementing our long-time plans». [12]
  • According to Presidential Advisor Sergey Glazyev, Washington is «trying to destroy and weaken Russia, causing it to fragment, as they need this territory and want to establish control over this entire space». [18] «We have offered cooperation from Lisbon to Vladivostok, whereas they need control to maintain their geopolitical leadership in a competition with China,» he has explained, pointing out that the US wants lordship and is not interested in cooperation. [19] Alluding to former US top diplomat Madeline Albright’s sentiments that Russia was unfairly endowed with vast territory and resources, Putin also spoke along similar lines at his December 18 press conference, explaining how the US wanted to divide Russia and control the abundant natural resources in Russian territory. It is of little wonder that in 2014 a record number of Russian citizens have negative attitudes about relations between their country and the United States. A survey conducted by the Russian Public Opinion Research Center has shown that of 39% of Russian respondents viewed relations with the US as «mostly bad» and 27% as «very bad». [20] This means 66% of Russian respondents have negative views about relations with Washington. This is an inference of the entire Russian population’s views. Moreover, this is the highest rise in negative perceptions about the US since 2008 when the US supported Georgian President Mikheil Saakashvili in Tbilisi’s war against Russia and the breakaway republic of South Ossetia; 40% viewed them as «mostly bad» and 25% of Russians viewed relations as «very bad» and at the time. [21]
  • In more ways than one the Turk Stream pipeline can be viewed as a reconfigured of the failed Nabucco natural gas pipeline. Not only will Turk Stream court Turkey and give Moscow leverage against the European Union, instead of reducing Russian influence as Nabucco was originally intended to do, the new pipeline to Turkey also coaxes Ankara to align its economic and strategic interests with those of Russian interests. This is why, when addressing Nabucco and the rivalries for establishing alternate energy corridors, this author pointed out in 2007 that «the creation of these energy corridors and networks is like a two-edged sword. These geo-strategic fulcrums or energy pivots can also switch their directions of leverage. The integration of infrastructure also leads towards economic integration». [8] The creation of Turk Stream and the strengthening of Russo-Turkish ties may even help placate the gory conflict in Syria. If Iranian natural gas is integrated into the mainframe of Turk Stream through another energy corridor entering Anatolia from Iranian territory, then Turkish interests would be even more tightly aligned with both Moscow and Tehran. Turkey will save itself from the defeats of its neo-Ottoman policies and be able to withdraw from the Syrian crisis. This will allow Ankara to politically realign itself with two of its most important trading partners, Iran and Russia.
  • Whatever Washington’s intentions are, every step that the US takes to target Russia economically will eventually hurt the US economy too. It is also highly unlikely that the policy mandarins in Beijing are unaware of what the US may try to be doing. The Chinese are aware that ultimately it is China and not Russia that is the target of the United States.
  • The United States is waging a fully fledged economic war against the Russian Federations and its national economy. Ultimately, all Russians are collectively the target. The economic sanctions are nothing more than economic warfare. If the crisis in Ukraine did not happen, another pretext would have been found for assaulting Russia. Both US Assistant-Secretary of State Victoria Nuland and US Assistant-Secretary of the Treasury Daniel Glaser even told the Foreign Affairs Committee of the US House of Representatives in May 2014 that the ultimate objectives of the US economic sanctions against Russia are to make the Russian population so miserable and desperate that they would eventually demand that the Kremlin surrender to the US and bring about «political change». «Political change» can mean many things, but what it most probably implies here is regime change in Moscow. In fact, the aims of the US do not even appear to be geared at coercing the Russian government to change its foreign policy, but to incite regime change in Moscow and to cripple the Russian Federation entirely through the instigation of internal divisions. This is why maps of a divided Russia are being circulated by Radio Free Europe. [17]
  • Without question, the US wants to disrupt the strategic partnership between Beijing and Moscow. Moscow’s strategic long-term planning and Sino-Russian cooperation has provided the Russia Federation with an important degree of economic and strategic insulation from the economic warfare being waged against the Russian national economy. Washington, however, may also be trying to entice the Chinese to overplay their hand as Russia is economically attacked. In this context, the price drops in the energy market may also be geared at creating friction between Beijing and Moscow. In part, the manipulation of the energy market and the price drops could seek to weaken and erode Sino-Russian relations by coaxing the Chinese into taking steps that would tarnish their excellent ties with their Russian partners. The currency war against the Russian ruble may also be geared towards this too. In other words, Washington may be hoping that China becomes greedy and shortsighted enough to make an attempt to take advantage of the price drop in energy prices in the devaluation of the Russian ruble.
  • Russia can address the economic warfare being directed against its national economy and society as a form of «economic terrorism». If Russia’s banks and financial institutions are weakened with the aim of creating financial collapse in the Russian Federation, Moscow can introduce fiscal measures to help its banks and financial sector that could create economic shockwaves in the European Union and North America. Speaking in hypothetical terms, Russia has lots of options for a financial defensive or counter-offensive that can be compared to its scorched earth policies against Western European invaders during the Napoleonic Wars, the First World War, and the Second World War. If Russian banks and institutions default and do not pay or delay payment of their derivative debts and justify it on the basis of the economic warfare and economic terrorism, there would be a financial shock and tsunami that would vertebrate from the European Union to North America. This scenario has some parallels to the steps that Argentina is taken to sidestep the vulture funds.
  • The currency war eventually will rebound on Washington and Wall Street. The energy war will also reverse directions. Already, the Kremlin has made it clear that it and a coalition of other countries will de-claw the US in the currency market through a response that will neutralize US financial manipulation and the petro-dollar. In the words of Sergey Glazyev, Moscow is thinking of a «systemic and comprehensive» response «aimed at exposing and ending US political domination, and, most importantly, at undermining US military-political power based on the printing of dollars as a global currency». [22] His solution includes the creation of «a coalition of sound forces advocating stability — in essence, a global anti-war coalition with a positive plan for rearranging the international financial and economic architecture on the principles of mutual benefit, fairness, and respect for national sovereignty». [23] The coming century will not be the «American Century» as the neo-conservatives in Washington think. It will be a «Eurasian Century». Washington has taken on more than it can handle, this may be why the US government has announced an end to its sanctions regime against Cuba and why the US is trying to rekindle trade ties with Iran. Despite this, the architecture of the post-Second World War or post-1945 global order is now in its death bed and finished. This is what the Kremlin and Putin’s presidential spokesman and press secretary Dmitry Peskov mean when they impart—as Peskov stated to Rossiya-24 in a December 17, 2014 interview — that the year 2014 has finally led to «a paradigm shift in the international system».
Paul Merrell

Syria Becomes World War Powderkeg As China Joins Russian Alliance With Assad - 0 views

  • According to state-run Chinese news outlet Xinhua, the Chinese military — citing remarks made by a high-ranking military official during a rare trip to Damascus — is seeking closer ties with war-torn Syria, offering to supply humanitarian aid and even train Syrian military personnel. On Tuesday, the Director of the Office for Military Cooperation of China’s Central Military Commission, Guan Youfei, flew to Damascus to have discussions with Syrian Defense Minister Fahad Jassim al-Freij,Xinhua says. Director Guan, speaking with Xinhua, noted historical ties between the two countries and highlighted the positive role China has played in seeking a resolution to the fighting in Syria. Reuters points out that Xinhua, paraphrasing Guan’s words, states: “China’s and Syria’s militaries have a traditionally friendly relationship, and China’s military is willing to keep strengthening exchanges and cooperation.”
  • The news comes as Syrian government forces, backed by Russian airpower, have established a siege around Aleppo, the last remaining enemy stronghold. Syrian and Russian forces have established humanitarian corridors for which civilians and even rebel fighters can escape — and maintains daily ceasefires for them to do this. Given these developments, it appears the last stand of the rebels may be imminent. As Underground Reporter has previously written: “All evidence points to the fact that the Syrian government is attempting to give the rebels within Aleppo a chance to surrender without further bloodshed. The rebels, however, appear steadfast. It was recently reported that 7,000 fighters are headed toward Aleppo from the southwest.” Interestingly — and, to be sure, concerningly — Xinhua noted that while Director Guan was in Damascus on Tuesday, he met with a Russian general; though the agency provided no further comment on the matter.
  • Remember, the U.S. and China are on the verge of all-out naval warfare in the South China Sea, with neither side willing to give an inch. Recall also that U.S.-led NATO is in Eastern Europe, along the border with Russia, conducting what many have called provocations in an attempt to elicit a response from the Russian military. Now, with China’s presence in Syria — and on the side of Russian and Syrian forces, no less — the last remaining global superpower has injected itself in the most hotly-contested military conflict on the planet. As Zero Hedge fittingly summarized: “Which means that at this moment, every major world superpower is officially involved in the Syrian war, which has on various occasions been aptly called a powderkeg for what may be the next global military conflict — to be sure, all required players are now officially involved.”
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    Adds to the tension created by Hillary's promise to create no-fly "safety zones" in Syria with direct involvement of the U.S. military both in the air and on the ground. So the U.S. would be positioned against the two other major nuclear powers in Syria. What could go wrong?
Paul Merrell

Asia Times Online :: Our man in Quito - 0 views

  • HONG KONG - So it's going to be Our Man in Quito. The narrative may not be as elegant as Graham Greene's, but the plot certainly beats the Bourne trilogy - because it's happening live, in real time, right in front of our eyes. It takes a former CIA asset to beat US "intelligence" - more like intel deprivation. The story of Edward Snowden's escape from Hong Kong is textbook. This correspondent, at dim sum on Sunday, was alerted by a source; "Get ready for something big; he's leaving soon." That was about 12:30 pm Hong Kong time. In fact Snowden had already flown from Chek Lap Kok on SU 213 <a href='http://asianmedia.com/GAAN/www/delivery/ck.php?n=a9473bc7&cb=%n' target='_blank'><img src='http://asianmedia.com/GAAN/www/delivery/avw.php?zoneid=36&cb=%n&n=a9473bc7&ct0=%c' border='0' alt='' ></a> bound for Moscow at 11:00 am. But nobody knew it yet. Hong Kong was still digesting the front page of the South China Morning Post displaying yet more devastating evidence of US cyber-spying of China.
  • So the US government thought it could simply intimate to Hong Kong to do it "our way or the highway" - while at the same time news of US serial hacking of Hong Kong and China was front-page news. Once again, five hours into Snowden's flight to Moscow, US corporate media was still parroting the official narrative - stressed by Obama's National Security Adviser Tom Donilon - that the noose was tightening around his neck. Whether Beijing had a subtly indirect input on the Hong Kong government's decision is open to a South China Sea of speculation. The fact is, not only was this a perfect solution for Hong Kong - which would be facing relentless pressure from the US government to extradite him - but also for Beijing, which maintains its upper-hand, furiously demanding a lot of explanations about the NSA targeting Chinese phone companies, the Asia-Pacific fiber-optic network and even Beijing's Tsinghua University.
  • Asia Times Online had also learned from another source close to Snowden's tight circle that a short stint in Hong Kong was always part of Plan A; he never intended to ask for political asylum in either Hong Kong or China. He was already focused on a "third country". What he did was to use Hong Kong as an ideal platform to unveil the inner workings of the Orwellian/Panopticon US surveillance state. First a set of general revelations to The Guardian. Then he went underground to prepare his escape - as he knew Washington would come after him with all guns (drones?) blazing. And then, a final set of revelations to the South China Morning Post closely focused on Asia and China. When Washington woke up to it, he was already out of the building. Jason Bourne, eat your heart out. Snowden was not "allowed to slip away". It all revolved around a meticulously timed operation involving Snowden, the Hong Kong government and WikiLeaks mediation.
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  • The predictable fury across Capitol Hill, with plenty of "hostile nations" rhetoric coupled with the inevitable demonizing of Russian President Vladimir Putin, not to mention NSA spy chief General Keith Alexander, among the usual platitudes about "defending this nation from a terrorist attack", depicting Snowden as an " individual who is not acting, in my opinion, with noble intent" - this all reads like lazily written lines in a cheap spy thriller. For the Empire, getting a bloody eye is not taken lightly. Washington is left with wishful thinking that Moscow might detain Snowden. Rubbish. Foreign Minister Sergey Lavrov had even advanced that Russia would consider granting political asylum if Snowden asked for it. And what about this priceless quote from Dmitry Peskov, Putin's spokesman? "I know nothing." Xinhua, for its part, predictably had a field day with it; "Washington should come clean about its record first. The United States, which has long been trying to play innocent as a victim of cyber attacks, has turned out to be the biggest villain in our age."
  • Among all the excitement provoked by this thriller, one should not lose focus; the most crucial aspect of the story is Obama and spy supremo Keith Alexander swearing that the Orwellian privatized intelligence-corporate-industrial complex is essential to prevent terrorism. It is not. This is a monumental lie - and Obama is complicit. Former ambassador Joe Wilson and his wife Valerie Plame Wilson - outed by Dick Cheney's gang - certainly don't lose their focus in this timely piece. Now to Quito. Danger still looms. But once he's there, it's game, set, match - as I said in this interview. And then HBO should start casting the movie, fast. With Ryan Gosling in the lead. Snowden, of course, should write the screenplay.
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    Pepe Escobar foresees a movie about what Edward Snowden has done to rival the Jason Bourne thrillers. And provides the international political context behind Snowden's escape from pursuing Feds out to punish him for blowing the whistle on their creation of an Orwellian surveillance state. The entire article is recommended reading; Pepe has an unusual talent for coming up with the information other reporters miss and telling the story in a fascinating way.    
Paul Merrell

Finian Cunningham - Brussels Sabotages EU Energy with South Stream Politicking - Strate... - 0 views

  • 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. 
  • Both Brussels and Washington have piled intense pressure on the Eastern European countries that were key to the project. Bulgaria, one of the newest and poorest members of the EU, was singled out for acute pressure from Brussels and Washington.   ‘Bulgaria halts work on the South Stream after US talks,’ reported the BBC back in June this year. Among the US Senators to have lobbied the government in Sofia was John McCain, the self-styled champion of the neo-Nazi and anti-Russian Kiev regime in Kiev that Washington and Brussels helped to install in February.   Bulgaria’s reported halt to the South Stream due to American «talks» finally became a matter of full suspension two months later, in August, after Brussels conducted more «talks». The exact nature of this coercion is not sure. But it is not hard to imagine how all sorts of financial leverage could have been exerted by Brussels and Washington on the vulnerable Bulgarian government. 
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  • 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. 
  • he debacle over the South Stream clearly shows that the European political elite have no interest in the welfare of its ordinary citizens or poorer member states. It is reported that cancellation of the project will cost manufacturing firms and other businesses at least $2 billion in the immediate term. These firms include German and Italian pipe manufacturers. Thousands of jobs across recession-hit Europe are thus being put at risk by political games that Brussels is playing against Russia for its own arcane geopolitical reasons in cahoots with Washington. 
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    The U.S. demands obedience, not loyalty, from the EU --- and gets it. 
Paul Merrell

​Ready, reset, go! ...to Cold War 2.0 - RT Op-Edge - 0 views

  • Enter a fragile Europe. Russia is the EU’s third-largest trading partner. Top economies such as Germany, France and Italy are vastly integrated with the Russian economy. A key plank of Washington’s strategy is to de-link Europe from Russia, part of a much larger agenda of preventing by all means Eurasia’s trade/commercial/economic development integration. It all hinges on Germany. That’s the key debate in Berlin nowadays. German business – and even conservative politicians – are reaching a stark conclusion; they do not want a heavily dysfunctional relationship with Russia. Public opinion, at 57 percent, wants a foreign policy more independent from the US. The US Orwellian/Panopticon complex intrusions in Germany have been instrumental as a game-changer.
  • The real, no-holds-barred reason for the Empire of Chaos’s obsessive economic war on Russia is that Moscow, as a BRICS member, alongside especially China and Brazil, is at the leading edge of emerging powers challenging the global financial/political (dis)order – wallowing in the mire of casino capitalism – dictated by the Empire of Chaos. And it gets ‘curiouser and curiouser’, because the effect of the sanctions hysteria has been to accumulate even more sympathy from the developing world towards Russia. The typical Washington rumbling about “the world” united to “isolate” Russia – in a replay of the Iran case – only applies to NATO. I have closely followed the latest chapters in Eurasia integration, from the Russia-China gas ‘deal of the century’ clinched in Shanghai to the St. Petersburg Economic Forum and then closer Eurasia-South America integration at the BRICS summit in Brazil, which created the New Development Bank and advanced the BRICS drive to develop their own parallel global institutions. President Putin even proposed a BRICS energy coalition, complete with nuclear power agreements and its own “fuel reserve bank and an energy policy institute.” Moscow – as well as Beijing - is actively strengthening energy deals across South America, as in Rosatom signing with both Argentina and Brazil to build nuclear power plants.
  • Eurasia integration, on the Asian front, proceeds unabated. Russia will sell more gas at lower prices not only to China, but also, in the near future, to Japan and South Korea as well. Beijing, meanwhile, is carefully moving its financial, economic and geopolitical pieces on the chessboard, and now on full red alert regarding the sanctions hysteria; the collective leadership very well knows that the target one day may be Russia because of Ukraine, but the next day may be China, because of the South China Sea or even a Hong Kong currently moving towards an impasse; should candidates for Hong Kong chief executive be chosen by direct democracy, or by committee, as Beijing prefers? The key point is, forget about a US-Russia reset. The Russia-China strategic partnership will strengthen. China is preparing itself for its turn in the sanction hysteria show. And for the foreseeable future, the new game in the chessboard is Cold War 2.0.
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    The U.S. throws its weight around expecting Germany (and the EU) to commit economic suicide by honoring U.S. sanctions on Russia and sticking with the sinking dollar. The U.S. invests in guns and projection of military power while Russia and the other BRICS nations just offer to do business. Methinks the U.S. has the losing strategy. 
Paul Merrell

China, Russia to hold first joint Mediterranean naval drills in May | Reuters - 0 views

  • (Reuters) - China will hold joint naval drills with Russia in mid-May in the Mediterranean Sea, the first time the two countries will hold military exercises together in that part of the world, the Chinese Defence Ministry said on Thursday. China and Russia have held naval drills in Pacific waters since 2012. The May maneuvers come as the United States ramps up military cooperation with its allies in Asia in response to China's increasingly assertive pursuit of maritime territorial claims
  • Since Western powers imposed economic sanctions on Russia last year over the violence in Ukraine, Moscow has accelerated attempts to build ties with Asia, Africa and South America, as well as warming relations with its former Soviet-era allies.
  • China has been increasingly flexing its military muscles since Xi assumed the presidency in 2013, jangling nerves around the region and globally, though Beijing insists it is a force for peace and threatens nobody.China's navy has become a focus of Xi's efforts to better project the country's power, especially in the disputed South China Sea.U.S. President Barack Obama accused China on Tuesday of "flexing its muscles" to advance its territorial claims at sea.
Paul Merrell

Say Hello to China's ICBMs - 0 views

  • China's alleged deployment of a DF-41 strategic ballistic missile brigade to Heilongjiang province, bordering Russia, triggered a fascinating spectacle; how to spin – or not to spin - what necessarily represents a milestone in Russia-China's strategic partnership.The Global Times stressed Hong Kong and Taiwan media interpreted pictures of the DF-41 were taken in Heilongjiang, admitting there was no official confirmation from Beijing while hoping the "strategic edge" would soon be confirmed.
  • Russian media was way more explicit, with military analyst Konstantin Sivkov stressing that the DF-41, as positioned, would not be able to target Russia's Far East and most of Eastern Siberia; and Kremlin spokesman Dmitry Peskov noting that "if the reports prove correct, the military build-up in China is not perceived as a threat to our country."
  • The timing of the alleged deployment, with Team Trump doubling down on anti-Chinese rhetoric on their war of positioning geared to extract further trade concessions, may indeed betray a very graphic Beijing message.
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  • The DF-41, a three-stage solid-propellant missile, with a range of up to 15,000 km and capable of delivering up to 10 MIRVed nuclear warheads, is one of the most sophisticated – and secret — ICBMS on earth. Virtually everything about it is classified. Positioning in Heilongjiang, near the city of Daqing, close to the Russian border, implies a huge "dead zone" around it. So call it a mix of nuclear deterrence and a "message" to the ultimate target — the West Coast of the United States. This propels the matter to an even more serious sphere than a possible upcoming crisis in the South China Sea, where the Pentagon, under the pretext of "freedom of navigation", is obsessed in maintaining "access", Trump or no Trump. If there ever were an attempted American blockade in the South China Sea, it would be easy to take out the Chinese-developed islands/islets/rocks/shoals. But far from easy to grapple with the Chinese response; submarines with "carrier killer" missiles able to take out anything the US Navy may come up with.
  • It's virtually guaranteed that an official Chinese confirmation of the DF-41 deployment will accelerate a nuclear arms race, involving all players from Russia, China and the US to India and Pakistan and even North Korea.
  • But more than this, it will be yet another lethal blow to the Beltway's master strategy – first deployed by Dr. Zbig "Grand Chessboard" Brzezinski – of trying to prevent the emergence of any peer competitor, or worse, an alliance of peer competitors such as Russia-China. Just at the start of the Trump era, the new reality could not be more striking. Not long ago, it was "say hello to Russia-China". Now it's "say hello to China's ICBMs."
Paul Merrell

U.S. warns China not to try Crimea-style action in Asia | Reuters - 0 views

  • (Reuters) - China should not doubt the U.S. commitment to defend its Asian allies and the prospect of economic retaliation should also discourage Beijing from using force to pursue territorial claims in Asia in the way Russia has in Crimea, a senior U.S. official said on Thursday. Daniel Russel, President Barack Obama's diplomatic point man for East Asia, said it was difficult to determine what China's intentions might be, but Russia's annexation of Crimea had heightened concerns among U.S. allies in the region about the possibility of China using force to pursue its claims."The net effect is to put more pressure on China to demonstrate that it remains committed to the peaceful resolution of the problems," Russel, the U.S. assistant secretary of state for East Asia, told the Senate Foreign Relations Committee.
  • Russel termed the deployment of large numbers of Chinese vessels in its dispute with the Philippines in the South China Sea "problematic" and said that Beijing had taken "what to us appears to be intimidating steps.""It is incumbent of all of the claimants to foreswear intimidation, coercion and other non-diplomatic or extra-legal means," he said.In Asia, China also has competing territorial claims with Japan and South Korea, as well as with Vietnam, Malaysia, Brunei and Taiwan in potentially energy-rich waters.Obama is due to visit Japan, South Korea, Malaysia and the Philippines from April 22, when he is expected to stress his commitment to a rebalancing of U.S. strategic and economic focus towards the Asia-Pacific region in the face of an increasingly assertive China.
Paul Merrell

2015 Will Be All About Iran, China and Russia / Sputnik International - 0 views

  • 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.
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  • 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.
Paul Merrell

Asia Times Online :: Central Asian News and current affairs, Russia, Afghanistan, Uzbek... - 0 views

  • Here's the US's exceptionalist promotion of "democracy" in action; Washington has recognized a coup d'etat in Ukraine that regime-changed a - for all its glaring faults - democratically elected government. And here is Russian President Vladimir Putin, already last year, talking about how Russia and China decided to trade in roubles and yuan, and stressing how Russia needs to quit the "excessive monopoly" of the US dollar. He had to be aware the Empire would strike back. Now there's more; Russian presidential adviser Sergey Glazyev <a href='http://asianmedia.com/GAAN/www/delivery/ck.php?n=a9473bc7&cb=%n' target='_blank'><img src='http://asianmedia.com/GAAN/www/delivery/avw.php?zoneid=36&cb=%n&n=a9473bc7&ct0=%c' border='0' alt='' ></a> told RIA Novosti, "Russia will abandon the US dollar as a reserve currency if the United States initiates sanctions against the Russian Federation." So the Empire struck back by giving "a little help" to regime change in the Ukraine. And Moscow counter-punched by taking control of Crimea in less than a day without firing a shot - with or without crack Spetsnaz brigades (UK-based think tanks say they are; Putin says they are not).
  • Putin's assessment of what happened in Ukraine is factually correct; "an anti-constitutional takeover and armed seizure of power". It's open to endless, mostly nasty debate whether the Kremlin overreacted or not. Considering the record of outright demonization of both Russia and Putin going on for years - and now reaching fever pitch - the Kremlin's swift reaction was quite measured. Putin applied Sun Tzu to the letter, and now plays the US against the EU. He has made it clear Moscow does not need to "invade" Ukraine. The 1997 Ukraine-Russia partition treaty specifically allows Russian troops in Crimea. And Russia after all is an active proponent of state sovereignty; it's under this principle that Moscow refuses a Western "intervention" in Syria. What he left the door open for is - oh cosmic irony of ironies - an American invention/intervention (and that, predictably, was undetectable by Western corporate media); the UN's R2P - "responsibility to protect" - in case the Western-aligned fascists and neo-nazis in Ukraine threaten Russians or Russian-speaking civilians with armed conflict. Samantha Power should be proud of herself.
  • The "West" once again has learned you don't mess with Russian intelligence, which in a nutshell preempted in Crimea a replica of the coup in Kiev, largely precipitated by UNA-UNSO - a shady, ultra-rightwing, crack paramilitary NATO-linked force using Ukraine as base, as exposed by William Engdahl. And Crimea was an even murkier operation, because those neo-nazis from Western Ukraine were in tandem with Tatar jihadis (the House of Saud will be heavily tempted to finance them from now on). The Kremlin is factually correct when pointing out that the coup was essentially conducted by fascists and ultra-right "nationalists" - Western code for neo-nazis. Svoboda ("Freedom") party political council member Yury Noyevy even admitted openly that using EU integration as a pretext "is a means to break our ties with Russia." Western corporate media always conveniently forgets that Svoboda - as well as the Right Sector fascists - follow in the steps of Galician fascist/terrorist Stepan Bandera, a notorious asset of a basket of "Western" intel agencies. Now Svoboda has managed to insert no less than six bigwigs as part of the new regime in Kiev.
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  • And even as 66% of Russian gas exported to the EU transits through Ukraine, the country is fast losing its importance as a transit hub. Both the Nord Stream and South Stream pipelines - Russia not on-the-ground but under-seas - bypass Ukraine. The Nord Stream, finished in 2011, links Russia with Germany beneath the Baltic Sea. South Stream, beneath the Black Sea, will be ready before the end of 2015. Geoeconomically, the Empire needs Ukraine to be out of the Eurasian economic union promoted by the Kremlin - which also includes Kazakhstan and Belarus. And geopolitically, when NATO Secretary General, the vain puppet Anders Fogh Rasmussen, said that an IMF-EU package for the Ukraine would be "a major boost for Euro-Atlantic security", this is what clinched it; the only thing that matters in this whole game is NATO "annexing" Ukraine, as I examined earlier. It has always been about the Empire of Bases - just like the encirclement of Iran; just like the "pivot" to Asia translating into encirclement of China; just like encircling Russia with bases and "missile defense". Over the Kremlin's collective dead body, of course.
  • Then there are the new regional governors appointed to the mostly Russophone east and south of Ukraine. They are - who else - oligarchs, such as billionaires Sergei Taruta posted to Donetsk and Ihor Kolomoysky posted in Dnipropetrovsk. People in Maidan in Kiev were protesting mostly against - who else - kleptocrat oligarchs. Once again, Western corporate media - which tirelessly plugged a "popular" uprising against kleptocracy - hasn't noticed it.
  • Ukraine's foreign currency reserves, only in the past four weeks, plunged from US$17.8 billion to $15 billion. Wanna buy some hryvnia? Well, not really; the national currency, is on a cosmic dive against the US dollar. This is jolly good news only for disaster capitalism vultures. And right on cue, the International Monetary Fund is sending a "fact-finding mission" to Ukraine this week. Ukrainians of all persuasions may run but they won't hide from "structural adjustment". They could always try to scrape enough for a ticket with their worthless hryvnia (being eligible for visa on arrival in Thailand certainly helps). European banks - who according to the Bank for International Settlements (BIS) hold more than $23 billion in outstanding loans - could lose big in Ukraine. Italian banks, for instance, have loaned nearly $6 billion. On the Pipelineistan front, Ukraine heavily depends on Russia; 58% of its gas supply. It cannot exactly diversify and start buying from Qatar tomorrow - with delivery via what, Qatar Airways?
  • US Secretary of State John Kerry accusing Russia of "invading Ukraine", in "violation of international law", and "back to the 19th century", is so spectacularly pathetic in its hypocrisy - once again, look at the US's record - it does not warrant comment from any informed observer. Incidentally, this is as pathetic as his offer of a paltry $1 billion in "loan guarantees" - which would barely pay Ukraine's bills for two weeks. The Obama administration - especially the neo-cons of the "F**k the EU" kind - has lost is power play. And for Moscow, it has no interlocutor in Kiev because it considers the regime-changers illegal. Moscow also regards "Europe" as a bunch of pampered whining losers - with no common foreign policy to boot. So any mediation now hinges on Germany. Berlin has no time for "sanctions" - the sacrosanct American exceptionalist mantra; Russia is a plush market for German industry. And for all the vociferations at the Economist and the Financial Times, the City of London also does not want sanctions; the financial center feeds on lavish Russian politico/oligarch funds. As for the West's "punishment" for Russia by threatening to expel it from the Group of Eight, that is a joke. The G-8, which excludes China, does not decide anything relevant anymore; the G-20 does.
  • If a wide-ranging poll were to be conducted today, it would reveal that the majority of Ukrainians don't want to be part of the EU - as much as the majority of Europeans don't want the Ukraine in the EU. What's left for millions of Ukrainians is the bloodsucking IMF, to be duly welcomed by "Yats" (as Prime Minister Yatsenyuk is treated by Vic "F**k the EU" Nuland). Ukraine is slouching towards federalization. The Kiev regime-changers will have no say on autonomous Crimea - which most certainly will remain part of Ukraine (and Russia by the way will save $90 million in annual rent for the Sevastopol base, which until now was payable to Kiev.) The endgame is all but written; Moscow controls an autonomous Crimea for free, and the US/EU "control", or try to plunder, disaster capitalism-style, a back of beyond western Ukraine wasteland "managed" by a bunch of Western puppets and oligarchs, with a smatter of neo-nazis. So what is the Obama/Kerry strategic master duo to do? Start a nuclear war?
Paul Merrell

Washington's REAL Motives in North Korea and Afghanistan - Psychology, Geopolitics & Ra... - 0 views

  • Washington also has a history of targeting countries that are sitting on strategic resources or transport routes, or which attempt to mount any form of economic resistance. Trump has openly endorsed this practice by the way (which is a break from the typical propaganda cover that is usually employed).
  • Were you aware that it was recently discovered that North Korea is sitting on the worlds largest deposit of rare earth metals? In fact their deposit is twice as large as the world’s total known reserves prior to this discovery. This is find is estimated to be worth trillions of dollars (that’s trillions with a T). Rare earth metals are essential in the manufacture of modern electronics, which makes it a matter of strategic importance, and China currently has a monopoly on global production. In the context of an escalation in the South China or the East China seas, this would be a significant vulnerability for the west.
Paul Merrell

China 'getting ready for war' over Donald Trump hostility, warns state media | World | ... - 0 views

  • Since taking the Oval office Trump has sparked global protests, outraged politicians and upset people over all corners of the globe.China’s state media has announced it will “step up preparedness for possible military conflict with US”Maritime security is being boosted particularly - especially since it began to look like Donald Trump will sanction an intervention in the row over the artificial islands in the South China Sea, which China stakes claim over.The billionaire businessman’s presidency has rapidly escalated chances of conflict, China has claimed, amid threats it would take a ‘war’ to take the disputed lands.The People’s Liberation Army said in a commentary on its official website last Friday, the day of Trump’s inauguration, that the chances of war have become “more real” amid a more complex security situation in Asia Pacific.An officials for the national defence mobilisation department in the Central Military Commission called for a US rebalancing of its strategy in Asia were causing problems.It said: “‘A war within the president’s term’ or ‘war breaking out tonight’ are not just slogans, they are becoming a practical reality.”
Gary Edwards

The Daily Bell - Gerald Celente on Multinationalism, Breaking the Chains and Individual... - 0 views

  • Gerald Celente: As I said, they're in a trap and it's a tapering trap, the quantitative easing trap. They can't keep printing more money because it's going to devalue the currency. And by the way, this is complicated, because it's not only the United States that's doing it; most of the central banks are doing it. China, the Europeans – they're all pumping money into their systems to keep them afloat. They're all in a trap. A time comes when you just can't keep doing it anymore. You can only take heroin so much before it kills you. This is monetary methadone and it's not going to cure the problem so they're going to have to stop. When it stops, that's when we go back into a recession and/or a depression.
  • Is it a depression? Is it a depression if you live in Greece or Spain or Portugal? Is it a depression if you're among the over 12% unemployed in Italy? When you look at John Williams's ShadowStats, in the US we're looking at about 22% unemployment. So yes, it's a depression for a lot of people. And then again, median household income in the US, accounting for inflation, is 10% below 1999 levels. That's a fact. So if you're earning 10 percent less for your family than you were in 1999 and the costs have skyrocketed since then, particularly in healthcare, food, rent, property, gas and other costs, do you think you're living in a depression? Daily Bell: Is central banking an art, a science or just a fraud?
  • Gerald Celente: Neither. It's a criminal operation. Throughout the 1800s, one of the major issues of every presidential election was whether or not to have a central bank. They fought it successfully not to have one until 1913. These are private banks that are running our country and many others. This goes back to the scriptures; it's Christ chasing the moneychangers out of the temple. The moneychangers have just got new names – Deutsche Bank, Societe Generale, Goldman Sachs, JPMorgan Chase, and, of course, JPMorgan Chase got that name because you're going to have to chase them to get your money because they just put a limit on how much you can withdraw or deposit each month in certain accounts, with a limit of $50,000.
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  • Daily Bell: It seems like people don't believe in central banking anymore so why does it continue? What holds it up in a so-called democracy where people have a vote? Gerald Celente: Most people don't even know what a central bank is and they still believe the lie that the Federal Reserve is a quasi-government institution when it's not. It's a totally private bank. Most people don't even know that. So most people are uninformed and like in all countries, they follow their leaders. Very few people rebel. There was an incident that happened in late October in the States. Hillary Clinton was speaking in Buffalo, delivering her model for what is required to solve complex problems. There was a heckler in the crowd who she admonished by saying, "... which doesn't include yelling. It includes sitting down and talking." What patronizing bullshit. You know what happened? The audience of 6,500 stood up and gave her a standing ovation that extended on and on. So it's the people. The people can blame the politicians all they want, but as I see it, it's the people's responsibility for the state of their nation.
  • Daily Bell: What's the employment picture like going forward in the US?
  • Gerald Celente: Lower paying jobs, less benefits, more temporary jobs and I think the question at the end is rather than going forward in the US it should be what's going forward in Slavelandia, because that's what it's become. You get out of college and you're an indentured servant. For the rest of your life you have to pay off your debt for your degree in worthlessness, for the most part. There are degrees that are worth something but not a lot of them. Where are you going to work? Name the company – Macy's? Starbucks? You can become a barista. Are they going to start teaching Shipping & Handling 101 in college? What are they going to do? Who are you going to work for? What are you going to do – stock shelves? This is better than slavery because when they had the plantation you had to take care of the slaves. Now you can just use them up and send them home. It's kind of like Bangladesh right here in the good 'ol USA.
  • Daily Bell: How about the rest of the world? Give us a global summary.
  • Gerald Celente: The global summary is this: Everybody can see what happened when the Federal Reserve talked about tapering several months ago. All of a sudden you saw the emerging markets start to crash; they dropped about 11% in a year before the Fed reversed its policy because all the hot, low-interest rate money that was leaving the US was flowing into the emerging markets, where you could borrow the money cheaply. So when they started to talk about tapering the hot money started flowing out of these countries, such as India, Brazil. They were really suffering from it and so were their stock markets. So without the cheap money flowing from the central banks, the entire global economy goes on stall and then it turns negative. You can see what's going on in China now; they're facing a banking crisis. Real estate prices in cities like Shanghai and Beijing have gone up over 20% in a year and no matter how the government tries to deflate it, the housing bubble keeps growing. The banks also have a lot of bad loans they're carrying. Now the Chinese government is trying to restrain that free-flow of cheap money, and what happens to their stock market when they do? It dives and the contagion spreads to other Asian equity markets. They all start dropping. It's all tied to cheap money and when the cheap money spigot begins to tighten up the global economy goes down. As I've made very clear, when the interest rates go up the economies go down – it's as simple as that. They've run out of this game. Compare this with the Great Depression, when it began essentially in 1930. This recession begin in 2008. It's now 2013 – we're only in 1935.
  • Daily Bell: China and the BRICS seem to be making noises about setting up their own monetary infrastructure without the dollar. Will that happen?
  • Gerald Celente: Yes, they are making noise, but reality is another issue, and the currency issue is complicated. The dollar goes down but where are you going to go, the euro? We were talking briefly about what's going on in Europe. There's financial market propaganda boasting that the worst of the eurozone crisis is over. They're bragging that The GDP of Spain was just reported to have gone up 0.1% and they made a big deal out of it. "The recession's over" is the B.S. message. No, the recession is not over! They're cooking the numbers to make a rotten situation look less rotten. In countries like Greece and Spain, youth unemployment is running above 50% and overall unemployment around 30%. The recession continues unabated, and there's absolutely no way out of this and they can't print their way out. Portugal, Italy, Greece, Spain, Ireland are doing terrible – what would anyone substitute euros for dollars? And what other currency choices are there, the yuan? As I mentioned, China has plenty of its own problems. They've been dumping a lot of cash into that society to keep it going. You know what China's greatest fear is? It's not the Spratly Islands or the South and China Sea territorial problems that are going on between them, the Philippines, Vietnam or the Japanese. China's greatest fear is its people. They've got 1.2 billion of them and if they're hungry or not happy there's going to be a lot of problems.
  • Again, what do you substitute the dollar for, Brazil's real or the Indian rupee? Remember, we saw what happened when the hot money started leaving the emerging market countries. The South African rand is also under pressure. The BRIC nations can speak as much as they want and they may have the greatest intention to create another reserve currency, but the fact is their economies are not robust or independent enough to create one at this time. As I said, talk is one thing, facts are another and although the world is less dependent on the dollar it is still by far the major reserve currency of the world and I don't see that rapidly changing unless there's a catastrophe that would cause it to happen. However, over the years, I do expect a new reserve model to develop.
  • Daily Bell: Let's talk about military action, particularly in Syria where Al Qaeda types have been fighting on the side of the US and NATO. Why does the US want to destabilize Syria and what country will be next – Iran? Russia?
  • Gerald Celente: We wrote about this in the Trends Journal going back to 2011. After Libya fell, Syria was the only port that the Chinese and the Russians had in the Mediterranean – the Port of Tartus. And also, Syria's only real ally in that area is Iran and, of course, Hezbollah in Lebanon. So with Syria out of the way there's nothing in the Middle East other than Iran to stop the continued spread of US influence and control in that area. It's really more about that than anything we see – again, having more control over that area for the US to do as it wants, with Iran really being the main target.
  • When President Obama backed off his red line threat and didn't attack Syria that was a tipping point. And, as important, the vast majority of Americans opposed the attack plan. That was a significant statement. The country said it was tired of war – and so are a lot of other nations.
  • Gerald Celente: Again, talk about morality and the recent Amnesty International report that said the United States was breaking international law in its use of drones to kill people that were convicted of nothing in addition to innocent people. How much more immoral could you get?
  • I can tell you how much immoral. How about starting wars in Afghanistan and Iraq – in Iraq with the proof that a war was started that killed at least a half a million people that was started under fake reasons; lies that Saddam Hussein had weapons of mass destruction and ties to al Qaeda. An Afghan war that's the longest war in American history, the war in Libya that they called a time-limed, scope-limited kinetic action that's destroyed the entire nation. You want to talk about immorality? How about the "too big to fail"? The government mandated immoral act of stealing money from the American people to give it to the banks, financiers and favored corporations? They say the fish rots from the head down and that's it; the fish has rotted in America for a long time. It didn't start with Obama. It goes back to Bush, Clinton, and keeps going back. Society gets the message from the top and, as I see it, they're simply following their leaders. For example, if their leader can start wars, rob people, take their money, why shouldn't I? Why should I operate on a moral level when immorality is condoned at the top?
  • Most recently, the United States government, in virtually every fashion of behavior, has been fascist. I don't say that by throwing the word out loosely. It's called the merger of corporate state and powers. It goes back to "too big to fail." Under capitalism there's no such thing. You're not too big to fail; you fail. Big, small, medium, you fail – it's capitalism.
  • Not anymore. You have your money taken from you by government order and it's transferred to the people who are the most favored by those in power. That's the only reason why the stock market keeps going up and why the multinationals are doing so well. That's where the $85 billion a month that the Federal Reserve is using in their quantitative easing is going. Then when you look at the other levels of immorality, as I mentioned, why shouldn't people feel as though they can do anything the government is doing? That's why it just keeps getting worse and worse. It's reflected in the music, the politics, every element of culture – both pop culture and political culture.
  • Under the dictates of the eurozone and globalization, the love of one's culture and pride of nation is denounced as "populism."
  • Daily Bell: Let's talk hard money. Can you give us an update on the price action of gold and silver? How about equity? Where is the stock market headed? We think the big boys are trying to rev it up and go for one last killing. Your thoughts?
  • Gerald Celente: The stock market will continue to rise as long as interest rates stay low. That's the best estimate you could give. They keep all of this quantitative easing that, for example, benefits the big private equity firms. Look what's going on in the United States with Blackstone Group. They own 40,000 homes. Where are they getting the money? Deutsche Bank is loaning them tons of money because they're getting money with overnight rates near zero, and they in turn loan it to the "bigs" really cheaply so it is just another example of what's keeping the whole stock market scam going.
  • As long as the money stays cheap the stock market keeps going up. As the money stays cheap gold and silver go up, and you're seeing gold making a bit of a rebound lately because of, again going back to the employment numbers in the States – there is no recovery, the jobs stink, they're not creating enough jobs. The tapering keeps going on, which is a devaluation of the currency, and quantitative easing continues. As long as money stays cheap gold goes up. Now, gold may go down when quantitative easing and tapering slow down. However, that's only going to be temporary because when that happens the bond market's going to explode, when interest rates go up, there's going to be another financial crisis. My best analysis at this time is the second quarter of 2014. The 'experts' are saying the stock market is booming. It has gone from a 14,000 high in 2007 to mid-15,000 now. Accounting for inflation, the stock market has to be about 15,750 just to be back at the 2007 level.
  • Daily Bell: There are other trends, of course, ones you often mention. You spoke to us last time about the New Millennium Renaissance.
  • Gerald Celente: Back to the renaissance... To me, that's the only thing that's going to change the future. We need a cultural, artistic and moral redevelopment, a restoration. Every issue that we've been talking about so far is based on human behavior and the human spirit – morality or immorality. Until morality is restored and the human spirit rises, nothing's going to change. As I was mentioning before, the fish rots from the head down. If you see the people at the head acting immorally, and from the head all the way down, why shouldn't you or I act immorally? What license do they have to steal that we don't? What license do they have to kill that we shouldn't?
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