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Since the economic crisis hit Europe, international investors have begun suing EU countries struggling under austerity and recession for a loss of expected profits, using international trade and investment agreements. Speculative investors are claiming more than 1.7 billion Euros in compensation from Greece, Spain and Cyprus in private international tribunals for the impact of measures implemented to deal with economic crises. This is the conclusion from a new report released by the Transnational Institute (TNI) and Corporate Europe Observatory (CEO). The report, ‘Profiting from Crisis – How corporations and lawyers are scavenging profits from Europe’s crisis countries’ (1), exposes a growing wave of corporate lawsuits against Europe’s struggling economies, which could lead to European taxpayers paying out millions of euros in a second major public bailout, this time to speculative investors. These lawsuits provide a warning of the potential high costs of the proposed trade deal between the US and the EU, which has just begun its fourth round of negotiations in Brussels.

Pia Eberhardt, trade campaigner with CEO and co-author of the report says: “Speculative investors are already using investment agreements to raid the cash-strapped public treasuries in Europe’s crisis countries. It would be political madness to grant corporations the same excessive rights in the even more far-reaching EU-US trade deal.”  The report examines a number of investor disputes launched against Spain, Greece and Cyprus in the wake of the European economic crisis. In most cases, the investors were not long-term investors, but rather invested as the crisis emerged and were therefore fully aware of the risks. They have used the investment agreements as a legal escape route to extract further wealth from crisis countries when their risky investment didn’t pay off.

For example, in Greece, Poštová Bank from Slovakia bought Greek debt after the bond value had already been downgraded and was then offered a very generous debt restructuring package, yet sought to extract an even better deal by suing Greece, using the bilateral investment treaty between Slovakia and Greece. In Cyprus, a Greek-listed private equity-style investor, Marfin Investment Group is seeking €823 million in compensation for their lost investments after Cyprus had to nationalise the Laiki Bank as part of an EU debt restructuring agreement. In Spain, 22 companies (at the time of writing), mainly private equity funds, have sued at international tribunals for cuts in subsidies for renewable energy. While the cuts in subsidies have been rightly criticised by environmentalists, only large foreign investors have the ability to sue.

“Once again a country “liberated” by the West is sinking deeper and deeper into chaos.” Global Research.  This could be anyone of the countries in conflict, where Washington and its Western and Middle Eastern stooges sow war – eternal chaos, misery, death – and submission. This is precisely the point: The Washington / NATO strategy is not to ‘win’ a war or conflict, but to create ongoing – endless chaos. That’s the way (i) to control people, nations and their resources; (ii) to assures the west a continuous need for military – troops and equipment – remember more than 50% of the US GDP depends on the military industrial complex, related industries and services; and (iii) finally, a country in disarray or chaos, is broke and needs money – money with hardship conditions, ‘austerity’ money from the notorious IMF, World Bank and other associated nefarious ‘development institutions’ and money lenders; money that equals enslavement, especially with corrupt leaders that do not care for their people.

That’s the name of the game – in Yemen, in Ukraine, in Syria, in Iraq, in Sudan, in Central Africa, in Libya…. you name it. Who fights against whom is unimportant. ISIS / ISIL / IS / DAISH / DAESH / Al-Qaeda and whatever other names for the mercenary killer organizations you want to add to the list – are just tags to confuse. You might as well add Blackwater, Xe, Academi and all its other successive names chosen to escape easy recognition. They are prostitutes for the Zionist-Anglo-Saxon Empire, prostitutes of the lowest level. Then come elite prostitutes, like Saudi Arabia, Qatar, Bahrain and other Gulf States, plus the UK and France, of course.

Amid worldwide downpours of IMF driven austerity policies, the people of Ireland have been flooding the streets to protest the privatization of the country’s water utility.  Irish Water (IW), created in 2013, has begun implementing strict metering and high rates for the vital resource.  Many in Ireland are refusing to pay the rates or fines to rid the country of IW.  Failure to do so portends a frightening precedent for the people of the world.

The British government said on Wednesday it would commit to NATO's defense spending pledge of two percent of GDP for the next five years, a decision which will help ease U.S. fears about their future ability to rely on a close military ally.The United States immediately welcomed the pledge and urged all NATO members to do the same.Britain has reduced defense spending by about 8 percent in real terms since 2010 to help cut a record budget deficit, shrinking the size of the armed forces by around one sixth.

Several top U.S. military figures, including U.S. Army Chief of Staff General Raymond Odierno, had also expressed concern about declining defense spending by Britain, which still spends more on defense than any other European NATO member.

Shares of BAE Systems, Britain's biggest defense contractor, traded up 3 percent on the day, making the company one of the top risers on Britain's bluechip index.

On July 4, 2015, one day before the national vote on the austerity demands of Greece’s creditors, it was rumored in the Financial Times that Greek banks were preparing to “bail in” (or confiscate) depositor funds to replace the liquidity choked off by the European Central Bank. The response of the Syriza government, to its credit, was “no way.” As reported in Zerohedge, the government was prepared to pursue three “nuclear options” to protect the deposits of the Greek people: nationalize the banks, launch a parallel currency in the form of electronic California-style IOUs, and use the Greek central bank’s printing press to issue euros.

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

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

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

Greece hasn’t outright asked Russia for a loan, but Russian Finance Minister Anton Siluanov said Moscow wouldn't rule it out. His statement comes days after Greece openly opposed further economic sanctions against Russia. "Well, we can imagine any situation, so if such [a] petition is submitted to the Russian government, we will definitely consider it, but we will take into account all the factors of our bilateral relationships between Russia and Greece, so that is all I can say. If it is submitted we will consider it," Siluanov told CNBC in an interview in Moscow on Thursday.

The new left-wing Syriza government in Greece won a majority at last Sunday’s election on the promise to renegotiate the country’s €317 billion debt and end austerity. Greece needs to negotiate with EU policymakers by February 28 in order to receive the next tranche of bailout funds. If Athens doesn’t get the money it will have difficulty servicing its debt. Two bailouts were paid in 2010 and 2014 totaling €240 billion.

The new government was quick to show support for Moscow, and has openly called for an end to Russian sanctions, and may veto any future sanctions.

The announcement this week that the Kiev regime struck a major deal with the United Arab Emirates for military weapons raises strong suspicions that the US-led NATO alliance has found a new backdoor into Ukraine. We say «new» because it is believed that the US and its NATO allies, Poland and Lithuania, are already covertly supplying weapons to the Kiev regime. 

Kiev President Petro Poroshenko hailed the new strategic partnership with the Persian Gulf kingdom while attending the International Defence Exhibition (IDEX) in the UAE capital, Abu Dhabi. Poroshenko, who was royally received by UAE Crown Prince Mohammed bin Zayed al Nayhan, declared himself a «president of peace» but that Ukraine, or rather the rump state that his regime commands, needed strong defence because of its «Russian enemy». A giveaway to the real significance of the surprise development is that Poroshenko and his Arab hosts also reportedly held discreet meetings with Pentagon officials and US weapons manufacturing executives during the weapons exhibition. That indicates that Washington is coordinating the expected arms transfers.

Although the Kiev-UAE partnership lacked any public detail, one can safely assume that the Arab supply of weapons to Ukraine is simply a conduit for American and NATO military support to the Western-backed junta, which seized power in Ukraine last year in an illegal coup. Its war of aggression on the separatist eastern Ukraine has inflicted at least 6,000 deaths, mainly among the ethnic Russian civilian population. Earlier this month it soon became clear that Washington and its NATO allies would pay a heavy political price for an audacious move to openly increase their military involvement in the Ukraine conflict. When Washington announced that it intended to go ahead with Congressional provisions to send «lethal aid» to Kiev there was much international consternation over such a reckless move. Moscow warned Washington that any further military support to the reactionary, anti-Russian Kiev regime on its western border would constitute a «disastrous escalation». US President Barack Obama then appeared to back off from the proposal to supply lethal munitions. America’s normally servile European allies also baulked at the Washington arms move. Germany, France and even Britain indicated disproval by stating that they would not be following suite by sending arms to Ukraine. Germany’s Chancellor Angela Merkel was perhaps the most forthright in her reservations. While on an official visit to Washington she reiterated her «no weapons» position to US media while being received in the White House by Obama.

On February 12, Christine Lagarde, Managing Director of the International Monetary Fund, announced that the IMF had reached an agreement with the Ukrainian government on a new economic reform program. Ms Lagarde’s statement, made in Brussels, came only minutes after peace negotiations between the heads of the German, French, Russian und Ukrainian governments in Minsk, Belarus, had ended. The timing was no coincidence. Washington had been left out of the negotiations and now reacted by sending its most powerful financial organization to the forefront in order to deliver a clear message to the world: that the US will not loosen its grip on the Ukraine, if not by sending weapons, then at least economically and financially.

The loans will be based on the terms of an economic program for Ukraine for 2015 – 2020, passed by the Kiev parliament in December 2014, and are tied to harsh conditions laid down in a letter of intent, signed by prime minister Yatseniuk and president Poroshenko in August 2014. Some of the measures have already been implemented, others will follow. Among those already in force is the flexible exchange rate regime which has not only led to a 67% devaluation of the hrivna, lowering the average monthly wage of Ukrainian workers to less than $ 60, but has also opened the doors for international currency speculators who have already made millions by indebting themselves in hrivnia and repaying their debts in euros and dollars. The rate of inflation, running at 25 % in 2014 and expected to rise even higher in 2015, and a hike in gas prices by 50 % in May 2014 made survival almost impossible for the weakest 20 % of the population who already lived below the poverty line in 2013. Among the measures still to come are the layoff of 10 % of the country’s public employees and the partial privatization of health care and education. The retirement age for women is to be raised by 10 years, that for men by 5 years, most benefits for old age pensioners are to be abolished, the pharmaceuticals market is to be deregulated. Retirement pensions will be frozen, and there will be no more free lunches for school children and patients in hospitals. Benefits for victims of the 1986 nuclear disaster in Chernobyl are to be cut, and the boundaries of the officially designated radioactive hazard zone will be revised. The country’s monthly minimum wage is to remain at 1,218.00 hrivna ($ 46 at the current rate of exchange) until at least November 2015.

The Ukrainian economy is bleeding out and rapidly approaching insolvency. The national currency, the hryvnia, has depreciated 68 percent in the past 12 months. Reports from Kiev indicate an ongoing disagreement between the central bank, which has tightened controls on capital movement to suppress capital flight, and Ukrainian Prime Minister Arseniy Yatsenyuk, who reportedly opposed capital control measures. The central bank lifted restrictions on capital movements on Yatsenyuk’s orders, sparking a further free-fall of the hryvnia, making it the world’s worst performing currency, according to Bloomberg. Ukrainian bonds have become the worst performing among 58 nations on Bloomberg’s Emerging Market Sovereign Bond Index, having plunged by 25 percent this year. Ukraine is now in the throes of a hyper-inflationary crisis, kept afloat by IMF loans that require gauging structural adjustments and austerity measures. GDP figures have dropped 6.5 percent in the last year, while the unemployment rate has climbed to 9.3 percent in 2014. The minimum wage has hit an all-time low of $43 USD, considerably below the wage equivalents of Bangladesh, Lesotho or Chad. According to reports, residents are considerably panicked as they stock up on foodstuffs in preparation for further economic turbulence. While a lull in fighting has taken place in the eastern regions of Donetsk and Luhansk, the ceasefire remains extremely fragile. The new authorities in Kiev would likely impose martial law across the country if further fighting breaks out between separatist militias and government forces, backed by quasi-fascist volunteer battalions.First appeared: http://journal-neo.org/2015/03/02/a-year-after-euro-maidan-ukraine-coming-apart-at-the-seams/

Venezuela seems to be following Ukraine on the neocon hit list for “regime change” as Washington punishes Caracas for acting against a perceived coup threat. But a broader problem is how the U.S. conflates “free markets” with “democracy,” giving “democracy” a bad name, writes Robert Parry.

The one common thread in modern U.S. foreign policy is an insistence on “free market” solutions to the world’s problems. That is, unless you’re lucky enough to live in a First World ally of the United States or your country is too big to bully.So, if you’re in France or Canada or – for that matter – China, you can have generous health and educational services and build a modern infrastructure. But if you’re a Third World country or otherwise vulnerable – like, say, Ukraine or Venezuela – Official Washington insists that you shred your social safety net and give free reign to private investors.

If you’re good and accept this “free market” domination, you become, by the U.S. definition, a “democracy” – even if doing so goes against the wishes of most of your citizens. In other words, it doesn’t matter what most voters want; they must accept the “magic of the market” to be deemed a “democracy.”Thus, in today’s U.S. parlance, “democracy” has come to mean almost the opposite of what it classically meant. Rather than rule by a majority of the people, you have rule by “the market,” which usually translates into rule by local oligarchs, rich foreigners and global banks.Governments that don’t follow these rules – by instead shaping their societies to address the needs of average citizens – are deemed “not free,” thus making them targets of U.S.-funded “non-governmental organizations,” which train activists, pay journalists and coordinate business groups to organize an opposition to get rid of these “un-democratic” governments.

Washington/Wall Street elites are now deep into nuclear war paranoia. A few studies at least hint at the obvious; glaring US strategic weakness. Consider some of the basics: - Russian ICBMs armed with MIRVs travel at about 18 Mach; that is way faster than anything in the US arsenal. And basically they are unbeatable. - The S-400 and S-500 double trouble; Moscow has agreed to sell the S-400 surface-to-air missile system to China; the bottom line is this will make Beijing impermeable to US air power, ICBMs and cruise missiles. Russia, for its part, is already focusing on the state of the art S-500 – which essentially makes the Patriot anti-missile system look like a V-2 from WWII. - The Russian Iskander missile travels at Mach 7 – with a range of 400km, carrying a 700kg warhead of several varieties, and with a circular error probability of around five meters. Translation: an ultimate lethal weapon against airfields or logistic infrastructure. The Iskander can reach targets deep inside Europe. - And then there’s the Sukhoi T-50 PAK FA.

NATO clowns dreaming of a war on Russia would have to come up with an ironclad system to knock out these Iskanders. They don’t have any. Additionally, they would have to face the S-400s, which the Russians can deploy all over the spectrum. Think of a hefty batch of S-400s positioned at the Russian exclave of Kaliningrad; that would turn NATO air operations deep inside Europe into an absolutely horrendous nightmare. On top of it, good ol’ NATO fighter jets cost a fortune. Imagine the effect of hundreds of destroyed fighter jets on an EU already financially devastated and austerity-plagued to death.

Still assuming those NATO clowns would insist on playing war, Moscow has already made it very clear Russia would use their awesome arsenal of 5,000-plus tactical nuclear weapons - and whatever else it takes - to defend the nation against a NATO conventional attack. Moreover, a few thousand S-400 and S-500 systems are enough to block a US nuclear attack.

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.

America loses all its wars because it seems we’ve always been on the wrong side of history. Morally nor legally should any nation have the right to invade and occupy another sovereign nation, much less believe it can achieve victory in long, protracted wars. Yet in violation of all ethical precepts and all international laws, the sole global superpower citing its impunity through exceptionalism hypocritically insists it can maintain its moral high ground in its relentless pursuit of regime changes anywhere it so chooses on earth. We are the global village bully that’s hated by much of the world. And it’s pure self-aggrandizing bullshit to perpetrate the myth that America is hated because of our “freedom,” another rhetorical brainwashing lie. We now live in a fascist totalitarian police state run by a globalized crime syndicate of the central banking cabal. As of last April per a Princeton-Northwestern study the US has officially been designated an oligarchy. Last year after a group of ethnic Russians living in Crimea voted to become part of Russia, the Russian military claimed control over its own naval base there that the US-NATO had been lusting to steal after the unlawful overthrow of Ukraine’s democratically elected sovereign government. Ever since it’s been nonstop lies and propaganda propagated to demonize Putin as the aggressor when in fact all along it’s the American Empire that’s been recklessly pushing what could end up World War III against nuclear powered Russia. With US-NATO missiles installed on Russia’s doorstep in virtually every former Soviet eastern bloc nation, hemming Russia in, who’s really the aggressor here?

Meanwhile, despite costing US taxpayers up to six trillion dollars and counting in Iraq alone and another trillion so far in Afghanistan in this age of increasing austerity, the albeit detached reverence for the US military and its abysmal losing war record fail to draw much notice or reflection, much less any real criticism or troubleshooting that might correct the same pattern of mistakes being repeated indefinitely. Another article in the same issue calls for resurrecting the draft as the feeble answer, something my ex-West Point roommate-former Afghan Ambassador-retired general and current Council on Foreign Relations (CFR) member Karl Eikenberry has also publicly advocated. They are all missing the point, unwilling or unable to address the pink elephant in the global room. Respected author-activist David Swanson wrote an incisive rebuttal also confronting the Atlantic article for not answering the obvious question of why America loses at war. He makes the excellent point: The U.S. has killed huge numbers of men, women, and children, made itself hated, made the world more dangerous, destroyed the environment, discarded civil liberties, and wasted trillions of dollars that could have done a world of good spent otherwise. A draft would do nothing to make people aware of that situation. But Swanson merely glides over as a passing fact that the ruling elite is the only entity that stands to gain from war. He fails to emphasize that it is the elite’s power, money and influence that both initiates, but then by calculated design, willfully sabotages the chance of any US military victory after World War II. The reason is simple. If the US triumphed in war it would only delay the totalitarian New World Order from materialization. Only a weakened United States would expeditiously promote a one world government.

As a brief historical review tracing events from the dawn of the twentieth century, media mogul Randolph Hearst used the false flag of the Spanish American War to “remember the USS Maine” sinking in the 1898 Havana harbor as its deceitful justification to ruthlessly, violently colonize Cuba and the Philippines, committing ethnic cleansing with estimates as high as near a half million dead Filipinos in that bloodbath. Then it was the “great” English statesman Winston Churchill who plotted the sinking of the Lusitania killing nearly 1200 of his own British citizens (along with 128 Americans) as the baited sacrifice secretly carrying arms to ignite the First World War that was supposed to end all wars.

Venezuelan opposition Mayor and longtime rightwing politician, Antonio Ledezma, has been arrested by the country’s intelligence services, SEBIN, for his alleged role in plotting to stage a coup against the democratically elected government of Nicolas Maduro.  The planned coup was uncovered last week by security forces, just hours before several US backed Air Force officials had planned to partake in a bombing spree of strategic targets in the capital. They had hoped this would lead to the assassination of the country’s president and bring about regime change in the South American country.  “Antonio Ledezma who, today, by order of the Public Prosecutor’s Office, was captured and is going to be prosecuted by the Venezuelan justice system, to make him answer to all of the crimes committed against the peace and security of the country and the Constitution… We’ve had enough of conspiracies, we want to work in peace!” announced Venezuelan President, Nicolas Maduro, amidst a chorus of cheers from onlookers.

Last week, Ledezma, who is current Mayor of the Metropolitan Capital District of Caracas, signed a statement calling for a “National Transition Agreement” alongside opposition politicians, Maria Corina Machado and currently detained leader of the Popular Will party, Leopoldo Lopez.  The document calls on Venezuelans to unite behind a plan to remove elected President Nicolas Maduro and sets out an action programme for the would be provisional government. This includes facilitating the return of “exiled” Venezuelans, prosecuting current members of government and reaching out to international financial lending agencies such as the International Monetary Fund.  Circulated on February 11th, the statement was disclosed just a day before the attempted coup was set to unfold and was reportedly the signal to set the plan in motion.  

“It has no base in any juridic text, it is a putschist act of conspiracy that is unfortunately to the liking of thousands of opposition militants who have been indoctrinated to attack democracy,” Constitutional Lawyer, Jesus Silva, told Venezuelanalysis.  Ledezma’s detention comes in the wake of several other arrests, including those of a number of airforce officials implicated in the plan.   According to revelations made by the President of the National Assembly, Diosadado Cabello, on Wednesday night, Ledezma has since been named by one of the arrested officials under questioning.  The confession links Ledezma to a plan to “eliminate” opposition leader Leopoldo Lopez last year in order to create “chaos” and destabilise the government. Fellow opposition politician and National Assembly legislator, Julio Borges, is also implicated in the assassination plan, which forced an intervention by the government in early 2014. At the time, Lopez’s wife, Lilian Tintori, stated that the government had acted to protect her husband’s safety. 

Geopolitically, China has also tweaked its model, but the West, especially the US, has barely noticed it. Essentially, the Beijing leadership finally got fed up with trying to manage a possible reset of the China-US strategic relationship, and be treated as an equal. Exceptionalists don’t do equality. So Beijing came up with its own response to the Obama administration’s political/military “pivot to Asia” – originally announced, and that’s quite significant, at the Pentagon. Thus, in late November 2014, during the Central Foreign Affairs Work Conference in Beijing, President Xi Jinping made an earth-shattering announcement; from now on China would stop treating the US – and the EU – as its main strategic priority. The new focus is on the fellow BRICS group of emerging powers, especially Russia; Asian neighbors; and top nations of the Global South, referred to as “major developing powers” (kuoda fazhanzhong de guojia). This is not as much a Chinese pivot to Asia as a Chinese pivot to selected nations in the Global South. And based on a “new type of international relations centered on ‘win-win’ cooperation” – not the bully-or-bomb exceptionalist approach.

China’s new foreign policy and strategic configuration is all the more evident in the courting of Asian neighbors, invited to embark on China’s extremely ambitious twin strategy and the greatest trade/commerce story of the young 21st century: the Silk Road Economic Belt and the 21st Century Maritime Silk Road, in short “Belt and Road initiative,” as it’s known in China, now officially launched with the first $40 billion attributed to a Silk Road Fund. The enormity of the challenge is on a par with Beijing’s ambition: a pan-Eurasia trade/commerce utopia weaved by high-speed rail, fiber optic networks, ports and pipelines, and connecting East Asia, Central Asia, Russia, the Middle East and Europe.

Plenty to be excited about then as the Year of the Sheep (or Goat) starts. What’s certain is that the Chinese caravan, much in contrast with the dogs of war - and austerity – pivoting across the West, has already pivoted towards “win-win” pan-Eurasia integration.

Iceland's Supreme Court has upheld convictions of market manipulation for four former executives of the failed Kaupthing bank in a landmark case that the country's special prosecutor said showed it was possible to crack down on fraudulent bankers. Hreidar Mar Sigurdsson, Kaupthing's former chief executive, former chairman Sigurdur Einarsson, former CEO of Kaupthing Luxembourg Magnus Gudmundsson, and Olafur Olafsson, the bank's second largest shareholder at the time, were all sentenced on Thursday to between four and five and a half years.The verdict is the heaviest for financial fraud in Iceland's history, local media said. Kaupthing collapsed under heavy debts after the 2008 financial crisis and the four former executives now live abroad. Though they sometimes returned to Iceland to collaborate with the court investigation, none were present on Thursday.Iceland's government appointed a special prosecutor to investigate its bankers after the world's financial systems were rocked by the discovery of huge debts and widespread poor corporate governance. He said Thursday's ruling was a signal to countries slow to pursue similar cases that no individual was too big to be prosecuted.

"This case...sends a strong message that will wake up discussion," special prosecutor Olafur Hauksson told Reuters. "It shows that these financial cases may be hard, but they can also produce results."Not all of Iceland's prosecutions have succeeded. But the country's efforts contrast with the United States and particularly Europe, where though some banks have been fined, few executives have been tried and voters suffering post-crisis austerity conditions feel bankers got off lightly.A recent scandal at the Swiss private bank of Europe's biggest lender HSBC has highlighted the controversy again and sparked a political row about whether the bank did enough to pursue possible tax dodgers..

Iceland struggled initially to appoint a special prosecutor. Hauksson, 50, a policeman from a small fishing village, was encouraged to put in for the job after the initial advertisement drew no applications. Nor have all of his prosecutions been trouble-free: two former bank executives were acquitted in one case, while sentences imposed on others have been criticized for being too light.However, Icelandic lower courts have convicted the chief executives of all three of its largest banks for their responsibility in a crisis that prosecutors said highlighted the operations of a club of wealth financiers in a country of just 320,000 people.They also convicted former chief executives of two other major banks, Glitnir and Landsbanki, for charges ranging from fraud and market manipulation.Parliament relaxed bank secrecy laws in Iceland to help the prosecutors investigate bank documents without court orders."Why should we have a part of our society that is not being policed or without responsibility?" Hauksson said. "It is dangerous that someone is too big to investigate - it gives a sense there is a safe haven."Seven criminal cases involving bankers have made it to the Supreme Court, which upheld six of them. Five more, including cases of CEOs - are due to be heard by the top court. Another 14 cases are awaiting possible prosecution, Hauksson said.

On December 8, the IMF’s Chief Spokesman Gerry Rice sent a note saying: “The IMF’s Executive Board met today and agreed to change the current policy on non-toleration of arrears to official creditors. We will provide details on the scope and rationale for this policy change in the next day or so.” Since 1947 when it really started operations, the World Bank has acted as a branch of the U.S. Defense Department, from its first major chairman John J. McCloy through Robert McNamara to Robert Zoellick and neocon Paul Wolfowitz. From the outset, it has promoted U.S. exports – especially farm exports – by steering Third World countries to produce plantation crops rather than feeding their own populations. (They are to import U.S. grain.) But it has felt obliged to wrap its U.S. export promotion and support for the dollar area in an ostensibly internationalist rhetoric, as if what’s good for the United States is good for the world. The IMF has now been drawn into the U.S. Cold War orbit. On Tuesday it made a radical decision to dismantle the condition that had integrated the global financial system for the past half century. In the past, it has been able to take the lead in organizing bailout packages for governments by getting other creditor nations – headed by the United States, Germany and Japan – to participate. The creditor leverage that the IMF has used is that if a nation is in financial arrears to any government, it cannot qualify for an IMF loan – and hence, for packages involving other governments. This has been the system by which the dollarized global financial system has worked for half a century. The beneficiaries have been creditors in US dollars.

But on Tuesday, the IMF joined the New Cold War. It has been lending money to Ukraine despite the Fund’s rules blocking it from lending to countries with no visible chance of paying (the “No More Argentinas” rule from 2001). With IMF head Christine Lagarde made the last IMF loan to Ukraine in the spring, she expressed the hope that there would be peace. But President Porochenko immediately announced that he would use the proceeds to step up his nation’s civil war with the Russian-speaking population in the East – the Donbass. That is the region where most IMF exports have been made – mainly to Russia. This market is now lost for the foreseeable future. It may be a long break, because the country is run by the U.S.-backed junta put in place after the right-wing coup of winter 2014. Ukraine has refused to pay not only private-sector bondholders, but the Russian Government as well. This should have blocked Ukraine from receiving further IMF aid. Refusal to pay for Ukrainian military belligerence in its New Cold War against Russia would have been a major step forcing peace, and also forcing a clean-up of the country’s endemic corruption. Instead, the IMF is backing Ukrainian policy, its kleptocracy and its Right Sector leading the attacks that recently cut off Crimea’s electricity. The only condition on which the IMF insists is continued austerity. Ukraine’s currency, the hryvnia, has fallen by a third this years, pensions have been slashed (largely as a result of being inflated away), while corruption continues unabated.

Despite this the IMF announced its intention to extend new loans to finance Ukraine’s dependency and payoffs to the oligarchs who are in control of its parliament and justice departments to block any real cleanup of corruption. For over half a year there was a semi-public discussion with U.S. Treasury advisors and Cold Warriors about how to stiff Russia on the $3 billion owed by Ukraine to Russia’s Sovereign Wealth Fund. There was some talk of declaring this an “odious debt,” but it was decided that this ploy might backfire against U.S. supported dictatorships. In the end, the IMF simply lent Ukraine the money. By doing so, it announced its new policy: “We only enforce debts owed in US dollars to US allies.” This means that what was simmering as a Cold War against Russia has now turned into a full-blown division of the world into the Dollar Bloc (with its satellite Euro and other pro-U.S. currencies) and the BRICS or other countries not in the U.S. financial and military orbit. What should Russia do? For that matter, what should China and other BRICS countries do? The IMF and U.S. neocons have sent the world a message: you don’t have to honor debts to countries outside of the dollar area and its satellites. Why then should these non-dollarized countries remain in the IMF – or the World Bank, for that matter. The IMF move effectively splits the global system in half,between the BRICS and the US-European neoliberalized financial system.

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

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

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