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Washington's support for a new Palestinian government backed by Israel's Islamist foe Hamas, has left the Jewish state feeling betrayed, triggering a new crisis with its closest ally. Several Israeli ministers expressed public anger on Tuesday after the US State Department said it was willing to work with the new Palestinian unity government put together by the West Bank leadership and Gaza's Hamas rulers. Technocratic in nature, the new government was sworn in on Monday in front of president Mahmud Abbas, with Washington offering its backing several hours later.

Speaking to reporters on Monday, State Department spokeswoman Jen Psaki said the new cabinet would be judged "by its actions.""At this point, it appears that president Abbas has formed an interim technocratic government that does not include ministers affiliated with Hamas," she said. "With what we know now, we will work with this government."

The US endorsement was viewed as a major blow for Israeli Prime Minister Benjamin Netanyahu, who had on Sunday urged the international community not to rush into recognising the new government, which he said would only "strengthen terror."

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.

By Pepe Escobar Let's start with a flashback to February 1992 - only two months after the dissolution of the Soviet Union. First draft of the US government's Defense Planning Guidance. It was later toned down, but it still formed the basis for the exceptionalist dementia incarnated by the Project for the New American Century; and also reappeared in full glory in Dr Zbig "Let's Rule Eurasia" Brzezinski's 1997 magnum opus The Grand Chessboard. It's all there, raw, rough and ready: Our first objective is to prevent the reemergence of a new rival, either on the territory of the former Soviet Union or elsewhere, that poses a threat on <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> the order of that posed by the Soviet Union. This ... requires that we endeavor to prevent any hostile power from dominating a region whose resources would, under consolidated control, be sufficient to generate global power. These regions include Western Europe, East Asia, the territory of the former Soviet Union, and Southwest Asia.

By Pepe Escobar Let's start with a flashback to February 1992 - only two months after the dissolution of the Soviet Union. First draft of the US government's Defense Planning Guidance. It was later toned down, but it still formed the basis for the exceptionalist dementia incarnated by the Project for the New American Century; and also reappeared in full glory in Dr Zbig "Let's Rule Eurasia" Brzezinski's 1997 magnum opus The Grand Chessboard. It's all there, raw, rough and ready: Our first objective is to prevent the reemergence of a new rival, either on the territory of the former Soviet Union or elsewhere, that poses a threat on <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> the order of that posed by the Soviet Union. This ... requires that we endeavor to prevent any hostile power from dominating a region whose resources would, under consolidated control, be sufficient to generate global power. These regions include Western Europe, East Asia, the territory of the former Soviet Union, and Southwest Asia.

That's all one needs to know about the Obama administration's "pivoting to Asia", as well as the pivoting to Iran ("if we're not going to war", as US Secretary of State John Kerry let it slip) and the pivoting to Cold War 2.0, as in using Ukraine as a "new Vietnam" remix next door to Russia. And that's also the crucial context for Obama's Pax Americana Spring collection currently unrolling in selected Asian catwalks (Japan, South Korea, Malaysia and Philippines).

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.

Powerful elites are using the credibility of the US Intelligence agencies to demonize Russia and prepare the country for war. This is the real meaning of the “Russia hacking” story which, as yet, has not produced any hard evidence of Russian complicity. Last week’s 25-page report, that was released by the Director of National Intelligence James Clapper, illustrates to what extent intelligence is being “fixed around the policy”.  Just as the CIA generated false information related to Weapons of Mass Destruction to soften public resistance to war with Iraq, so too, the spurious allegations in the DNI’s politically-motivated report are designed to depict Russia as a growing threat to US national security. The timing of the report has less to do with the election of Donald Trump as President than it does with critical developments in Syria where the Russian military has defeated US-proxies in Syria’s industrial hub, Aleppo, rolling back Washington’s 15-year War of Terror and derailing the imperialist plan to control vital resources and pipeline corridors across the Middle East and Central Asia. Russia has become the main obstacle to Washington achieving its strategic vision of pivoting to Asia and maintaining its dominant role into the next century. The Intelligence Community has been coerced into compromising its credibility to incite fear of Russia and to advance the geopolitical ambitions of deep state powerbrokers.

The “Russia hacking” flap shows how far the Intel agencies have veered from their original mandate, which is to impartially gather and analyze information that may be vital to US national security. As we have seen in the last two weeks, the leaders of these organizations feel free to offer opinions on  issues that clearly conflict with those of the new President-elect. Trump has stated repeatedly that he wants to reduce tensions and reset relations with Russia, but that policy is being sabotaged by members of the intelligence community, particularly CIA Director John Brennan who appeared just last week on PBS Newshour with Judy Woodruff. Here’s an excerpt from the interview: “We see that there are still a lot of actions that Russia is undertaking that undermine the principles of democracy in so many countries. What has happened in our recent election is not new. The Russians have engaged in trying to manipulate elections in Europe for a number of years… the Russians tried to interfere in our electoral process recently, and were actively involved in that. And that is something that we can’t countenance.” (“Interview with CIA Director John Brennan”,  PBS Newshour)

Brennan, of course, provided no evidence for his claims nor did he mention the hundreds of CIA interventions around the world. But Brennan’s accusations are less important than the fact that his appearance on a nationwide broadcast identifies him as a political advocate for policies that conflict with those of the new president. Do we really want unelected intelligence officials — whose job it is to provide the president with sensitive information related to national security– to assume a partisan role in shaping policy? And why would Brennan –whose is supposed to “serve at the pleasure of the president”– accept an invitation to offer his views on Russia when he knew they would be damaging to the new administration? Powerful people behind the scenes are obviously pushing the heads of these intelligence agencies to stick to their ‘anti-Moscow’ narrative to force Trump to abandon his plan for peaceful relations with Moscow.  Brennan isn’t calling the shots and neither are Clapper or Comey. They’re all merely agents serving the interests of establishment plutocrats whose geopolitical agenda doesn’t jibe with that of the incoming administration. If that wasn’t the case, then why would the Intelligence Community stake its reputation on such thin gruel as this Russian hacking gibberish? It doesn’t make any sense. The people who launched this campaign are either supremely arrogant or extremely desperate. Which is it?

In 1964, the year Dr Strangelove was made, "the missile gap" was the false flag. To build more and bigger nuclear weapons and pursue an undeclared policy of domination, President John F Kennedy approved the CIA's propaganda that the Soviet Union was well ahead of the US in the production of intercontinental ballistic missiles. This filled front pages as the "Russian threat". In fact, the Americans were so far ahead in production of the missiles, the Russians never approached them. The cold war was based largely on this lie.

Since the collapse of the Soviet Union, the US has ringed Russia with military bases, nuclear warplanes and missiles as part of its Nato enlargement project. Reneging on the Reagan administration's promise to the Soviet president Mikhail Gorbachev in 1990 that Nato would not expand "one inch to the east", Nato has all but taken over eastern Europe. In the former Soviet Caucasus, Nato's military build-up is the most extensive since the second world war.In February, the US mounted one of its proxy "colour" coups against the elected government of Ukraine; the shock troops were fascists. For the first time since 1945, a pro-Nazi, openly antisemitic party controls key areas of state power in a European capital. No western European leader has condemned this revival of fascism on the border of Russia. Some 30 million Russians died in the invasion of their country by Hitler's Nazis, who were supported by the infamous Ukrainian Insurgent Army (the UPA) which was responsible for numerous Jewish and Polish massacres. The Organisation of Ukrainian Nationalists, of which the UPA was the military wing, inspires today's Svoboda party.Since Washington's putsch in Kiev – and Moscow's inevitable response in Russian Crimea to protect its Black Sea fleet – the provocation and isolation of Russia have been inverted in the news to the "Russian threat". This is fossilised propaganda. The US air force general who runs Nato forces in Europe – General Philip Breedlove, no less – claimed more than two weeks ago to have pictures showing 40,000 Russian troops "massing" on the border with Ukraine. So did Colin Powell claim to have pictures proving there were weapons of mass destruction in Iraq. What is certain is that Barack Obama's rapacious, reckless coup in Ukraine has ignited a civil war and Vladimir Putin is being lured into a trap.

Following a 13-year rampage that began in stricken Afghanistan well after Osama bin Laden had fled, then destroyed Iraq beneath a false flag, invented a "nuclear rogue" in Iran, dispatched Libya to a Hobbesian anarchy and backed jihadists in Syria, the US finally has a new cold war to supplement its worldwide campaign of murder and terror by drone.A Nato membership action plan – straight from the war room of Dr Strangelove – is General Breedlove's gift to the new dictatorship in Ukraine. "Rapid Trident" will put US troops on Ukraine's Russian border and "Sea Breeze" will put US warships within sight of Russian ports. At the same time, Nato war games in eastern Europe are designed to intimidate Russia. Imagine the response if this madness was reversed and happened on the US's borders. Cue General Turgidson.And there is China. On 23 April, Obama will begin a tour of Asia to promote his "pivot" to China. The aim is to convince his "allies" in the region, principally Japan, to rearm and prepare for the possibility of war with China. By 2020, almost two-thirds of all US naval forces in the world will be transferred to the Asia-Pacific area. This is the greatest military concentration in that vast region since the second world war.

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.

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]

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

To quote the immortal line in Dashiell Hammett's The Maltese Falcon, as filmed by John Huston, "Let's talk about the black bird" - let's talk about a mysterious bird made out of gold. Oh yes, because this is a film noir worthy of Dashiell Hammett - involving the Pentagon, Beijing, shadow wars, pivoting and a lot of gold. Let's start with Beijing's official position; "We don't have enough gold". That leads to China's current, frenetic buying spree - which particularly in Hong Kong anyone can follow live, in real time. China is already the top gold producing and the top gold importing nation in the world. Gold accounts for roughly 70% of reserves held by the US and <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>  Germany - and more or less the same for France and Italy. Russia - also on a buying spree - is slightly over 10%. But China's percentage of gold among its whopping US$3.2 trillion reserves is only 2%.

Beijing is carefully following the current shenanigans of the New York Federal Reserve, which, asked by the German Bundesbank to return the German gold it is holding, replied it would take at least seven years. German financial journalist Lars Schall has been following the story since the beginning, and virtually alone has made the crucial connection between gold, paper money, energy resources and the abyss facing the petrodollar. Whenever Beijing says it needs more gold, this is justified as a hedge "against risks in foreign reserves" - aka US dollar fluctuation - but especially to "promote yuan globalization". As in, suavely, having the yuan compete with the US dollar and the euro "fairly" in the "international market". And here's the (elusive) heart of the matter. What Beijing actually wants is to get rid of the US dollar peg. For that to happen, it needs vast gold reserves. So here's Beijing pivoting from the US dollar to the yuan - and trying to sway vast swathes of the global economy to follow the path. This golden rule is Beijing's Maltese Falcon: "The stuff dreams are made of".

Circumstances surrounding the European and Ukrainian elections were far from being a mere coincidence. The regime changers in Kiev decided to hold a presidential election on May 25, the same day as European Parliament elections, in order to demonstrate their desire to follow a European-centric foreign policy.

Way beyond the established fact of an Atlantic push against Russian western borderlands, Ukraine remains a catfight of local oligarchies. No wonder the new Ukrainian president is also an oligarch; the 7th wealthiest citizen in the land, who owns not just a chocolate empire, but also automotive plants, a shipyard in Crimea and a TV channel. The only difference is that he’s a NATO oligarch

Meanwhile, in NATOstan, local and transnational elites have been desperately trying to spin a measure of success. Abstention remains notable – only roughly 4 in 10 Europeans take the trouble to vote on what goes on in Strasbourg, with a majority alienated enough to legitimize the mix of internal European austerity and international belligerence.

Am I the only person who still remembers how Pentagon officials spoke of the major military bases already on the drawing boards as the invasion of Iraq ended in April 2003? It was taboo back then to refer to those future installations as “permanent bases.” No one wanted to mouth anything that had such an ugly (yet truthful) ring to it when it came to the desires of the Bush administration to occupy and dominate the Greater Middle East for generations to come. Charmingly enough, however, those Pentagon types sometimes spoke instead of “enduring camps,” as if a summer frolic in the countryside was at hand. Later, those enormous installations -- Balad Air Base, the size of a small American town, had its own Pizza Hut, Subway, and Popeye's franchises, "an ersatz Starbucks," a 24-hour Burger King, two post exchanges, and four mess halls -- would be relabeled "contingency operating bases." They were meant to be Washington’s ziggurats, its permanent memorials to its own power in the region. With rare exceptions, American reporters would nonetheless pay almost no attention to them or to the obvious desire embedded in their very construction to control Iraq and the rest of the Greater Middle East.

In all, from the massive Camp Victory outside Baghdad to tiny outposts in the hinterlands, not to speak of the three-quarters-of-a-billion dollar citadel Washington built in Baghdad’s green zone to house an embassy meant to be the central command post for a future Pax Americana in the region, the Pentagon built 505 bases in Iraq. In other words, Washington went on a base-building bender there. And lest you imagine this as some kind of anomaly, consider the 800 or more bases and outposts (depending on how you counted them) that the U.S. built in Afghanistan. Eight years later, all 505 of the Iraqi bases had been abandoned, as most of the Afghan ones would be.  (A few of the Iraqi bases have since been reoccupied by American advisers sent in to fight the Islamic State.)

Nonetheless, as Chalmers Johnson pointed out long ago (and TomDispatch regular David Vine has made so clear recently), this was the U.S. version of empire building. And in this century, despite the loss of those Iraqi bases and most of the Afghan ones, Washington has continued its global base-building extravaganza in a big way. It has constructed, expanded, or reconfigured a staggering set of bases in the Greater Middle East and on the island of Diego Garcia in the Indian Ocean and has been building drone bases around the world. Then there's the remaining European bases that came out of World War II, were expanded in the Cold War years, and have, in this century, been driven deep into the former Eastern European imperial possessions of the old Soviet Union.  Add in another structure of bases in Asia that also came out of World War II and that are once again added to, reconfigured, and pivoted toward. Toss in as well the 60 or so small bases, baselets, sites, storage areas, and the like that, in recent years, the U.S. military has been constructing across Africa. Throw in some bases still in Latin America and the Caribbean, including most infamously Guantánamo in Cuba, and you have a structure for the imperial ages.

Riyadh was fully aware the beheading of respected Saudi Shi'ite cleric Nimr al-Nimr was a deliberate provocation bound to elicit a rash Iranian response. The Saudis calculated they could get away with it; after all they employ the best American PR machine petrodollars can buy, and are viscerally defended by the usual gaggle of nasty US neo-cons.    In a post-Orwellian world "order" where war is peace and "moderate" jihadis get a free pass, a House of Saud oil hacienda cum beheading paradise — devoid of all civilized norms of political mediation and civil society participation — heads the UN Commission on Human Rights and fattens the US industrial-military complex to the tune of billions of dollars while merrily exporting demented Wahhabi/Salafi-jihadism from MENA (Middle East-Northern Africa) to Europe and from the Caucasus to East Asia. 

And yet major trouble looms. Erratic King Salman's move of appointing his son, the supremely arrogant and supremely ignorant Prince Mohammad bin Salman to number two in the line of succession has been contested even among Wahhabi hardliners. But don't count on petrodollar-controlled Arab media to tell the story. English-language TV network Al-Arabiyya, for instance, based in the Emirates, long financed by House of Saud members, and owned by the MBC conglomerate, was bought by none other than Prince Mohammad himself, who will also buy MBC. With oil at less than $40 a barrel, largely thanks to Saudi Arabia's oil war against both Iran and Russia, Riyadh's conventional wars are taking a terrible toll. The budget has collapsed and the House of Saud has been forced to raise taxes. The illegal war on Yemen, conducted with full US acquiescence, led by — who else — Prince Mohammad, and largely carried out by the proverbial band of mercenaries, has instead handsomely profited al-Qaeda in the Arabic Peninsula (AQAP), just as the war on Syria has profited mostly Jabhat al-Nusra, a.k.a. al-Qaeda in Syria.

Saudi Arabia is essentially a huge desert island. Even though the oil hacienda is bordered by the Red Sea and the Persian Gulf, the Saudis don't control what matters: the key channels of communication/energy exporting bottlenecks — the Bab el-Mandeb and the Straits of Hormuz, not to mention the Suez canal. Enter US "protection" as structured in a Mafia-style "offer you can't refuse" arrangement; we guarantee safe passage for the oil export flow through our naval patrols and you buy from us, non-stop, a festival of weapons and host our naval bases alongside other GCC minions. The "protection" used to be provided by the former British empire. So Saudi Arabia — as well as the GCC — remains essentially an Anglo-American satrapy.          Al Sharqiyya — the Eastern Province of Saudi Arabia — holds only 4 million people, the overwhelming majority Shi'ites. And yet it produces no less than 80% of Saudi oil. The heart of the action is the provincial capital Al Qatif, where Nimr al-Nimr was born. We're talking about the largest oil hub on the planet, consisting of 12 crisscrossed pipelines that connect to massive Gulf oil terminals such as Dhahran and Ras Tanura.

The yuan is about to enter the IMF’s basket of reserve currencies this coming Saturday - alongside the US dollar, pound, euro and yen. This is no less than a geoeconomic earthquake. Not only does this represent yet another step in China’s irresistible path towards economic primacy; the Chinese currency’s inclusion in the Special Drawing Rights (SDR) basket will also lead central banks and hyper-wealthy funds – especially from the US – to increasingly buy more Chinese assets.At the first US presidential debate, Donald Trump took no prisoners, criticizing China’s currency manipulation. This is what he said:“You look at what China’s doing to our country in terms of making our product, they’re devaluing their currency and there’s nobody in our government to fight them… They’re using our country as a piggy bank to rebuild China, and many other countries are doing the same thing.”

Well, China is not “making our product”; the manufacturing process is Made in China – then exported to the US. Most of the profits benefit US corporations – everything from design, licensing and royalties to advertising, financing and retail margins. If the mantras manage to spell out a partial truth - the US has lost manufacturing jobs to China, China is the “factory of the world” – they don't spell out the hidden truth that those who profit are essentially major corporations.China does not “devalue their currency”; the People’s Bank of China periodically adjusts the yuan according to a very narrow band. The major practitioners of quantitative easing (QE) are actually the US, as well as Japan and the European Central Bank (ECB). And the currency of global consumer goods manufacturing continues to be the US dollar, not the yuan.

Beijing also is not “using our country as a piggy bank to rebuild China.” This is all about balance of payments. What US consumers spend on Made in China products – many of them delocalized by US corporations – is pumped back to the US as capital inflows that keep interest rates down and help to support the Empire of Chaos’s global hegemony.

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.

Power asserted that the most likely culprits behind the downing of MH17 were eastern Ukrainian separatists. Because of the high altitude MH17 was travelling at – approximately 33,000 feet – Power conceded that the weapons separatists have been using to down Ukrainian military aircraft would have been inadequate to down MH17. After claiming separatists had “bragged” about downing the airliner based on information from “social media,” she explained that Russia most likely assisted the separatists in operating the sophisticated anti-air missile systems required to reach MH17′s altitude. Power gives no explanation as to why after multiple successful downings of Ukrainian military aircraft with man-portable air defense systems (MANPADS), Russia and the separatists decided to employ larger, more complex weapon systems that would link any incident directly back to Moscow. Power also failed to explain how in one breath she suggests the separatists shot down MH17, then in the next claimed they did not have the ability to do so, and that Russia instead “assisted.”

Power appears to be suggesting Russia rolled self-propelled anti-air missile systems into Ukrainian territory and assisted separatists in firing at MH17 specifically – since all other incidents of separatists shooting down aircraft involved man-portable systems incapable of hitting MH17.

Strategically, politically, and even tactically, Russia and the separatists gained nothing by employing the larger Buk systems within Ukrainian territory as Power is suggesting. Where the World Sees Tragedy, NATO Sees a “Game Changing” Opportunity  Power’s comments and conclusions were echoes from the halls of the West’s corporate-financier funded policy think-tanks. The Royal United Services Institute (RUSI) in a statement titled, “The Downing of Malaysian Airlines Flight MH17: Russia in the Dock,” provides a self-incriminating indictment as to the motives Kiev and its NATO backers had in carrying out the attack on MH17 and subsequently framing Russia for it. RUSI’s statement claims: A Game Change: Within days, however, the real debate will shift from one about producing the right evidence and culprits, to more about what can be saved from the rapidly-deteriorating relations between Russia and the West.

"The intelligence and facts were being fixed around the policy." Everyone remembers the Downing Street Memo, which unveiled the Bush/Blair "policy" in the run-up to the 2003 bombing/invasion/occupation of Iraq. The "policy" was to get rid of Saddam Hussein via a lightning war. The justification was "terrorism" and (non-existent) weapons of mass destruction (WMD), which had "disappeared", mounted in trucks, deep into Syria. Forget about intelligence and facts. The tragedy of MH17 - turned, incidentally, into a WMD - might be seen as a warped rerun of imperial policy in Iraq. No need for a memo this time. The "policy" of the Empire of Chaos is clear, and <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> multi-pronged; diversify the "pivot to Asia" by establishing a beachhead in Ukraine to sabotage trade between Europe and Russia; expand the North Atlantic Treaty Organization to Ukraine; break the Russia-China strategic partnership; prevent by all means the trade/economic integration of Eurasia, from the Russia-Germany partnership to the New Silk Roads converging from China to the Ruhr; keep Europe under US hegemony.

The key reason why Russian President Vladimir Putin did not "invade" Eastern Ukraine - as much as he's been enticed to by Washington/NATO - to stop a US military adviser-facilitated running slaughter of civilians is that he does not want to antagonize the European Union, Russia's top trading partner.

The MH17 tragedy may have been a horrendous mistake. But it may also have been a desperate gambit by the Kiev minions of the Empire of Chaos. By now, Russian intel may have already mastered the key facts. Washington's predictable modus operandi was to shoot from the hip, igniting and in theory winning the spin war, and doubling down by releasing the proverbial army of "top officials" brimming with social media evidence. Moscow will take time to build a meticulous case, and only then lay it out in detail.

The United States already has 4500 troops in Iraq, but outgoing defense secretary Chuck Hagel says more may be needed.

U.S. ground forces may again be deployed to Iraq, outgoing Defense Secretary Chuck Hagel hinted on Friday. “I think it may require a forward deployment of some of our troops,” he told CNN. Hagel stated troops wouldn't operate as frontline fighters, but instead support Iraqi government forces in spotting Islamic State group targets and gathering intelligence. He also stated he is unsure whether such a deployment is yet needed. “I would say we're not there yet. Whether we get there or not, I don't know,” he said. Despite a pledge by President Barack Obama that there would be “no boots on the ground” in the fight against the Islamic State group, around 4500 U.S. troops are already in Iraq. The administration says the troops are primarily providing training to Iraqi government forces, and will not directly face the Islamic State group.

However, Hagel himself has acknowledged las year, “This is a long-term effort.” “It’s difficult. There will be setbacks. There will be victories,” he said ahead of a visit to Baghdad in December. The surprise visit was the first time Hagel has been to Iraq since he became defense secretary in February, 2013.

The investigation continues into a powerful bomb that tore through downtown Bangkok Monday, killing 20 and injuring over 100 more. The attack was timed as the current government reshuffled top positions, the new national charter prepared to move forward, and ousted prime minister Thaksin Shinawatra faced the loss of his police rank.

The investigation faces many technical challenges but as the government, police, and military attempt to carry it out, the Western media  has attempted to “take over” and begin its own investigation, carried out by unqualified pundits and subjected to public opinion rather than actual fact. The objective of the Western media is not truth, but rather to undermine the current government while attempting to exonerate Thaksin Shinawatra - leader of an ousted client regime groomed by and in the service of Western interests since as early as the 1990’s. To confront this intentional, politically motivated manipulation, it may be useful to examine several key questions facing any investigation and answer them with what real evidence now stands.

In reality, such a conflict is not possible. Shinawatra does not, nor did he ever have, the support or the operational capacity to lead such a war. However, wide scale terrorism dressed up by a complicit Western media was not only a very real possibility, it was the only possibility left for Shinawatra and his foreign backers.

It’s a day that should live forever in history. On that day, in the city of Yiwu in China’s Zhejiang province, 300 kilometers south of Shanghai, the first train carrying 82 containers of export goods weighing more than 1,000 tons left a massive warehouse complex heading for Madrid. It arrived on December 9th.Welcome to the new trans-Eurasia choo-choo train.  At over 13,000 kilometers, it will regularly traverse the longest freight train route in the world, 40% farther than the legendary Trans-Siberian Railway. Its cargo will cross China from East to West, then Kazakhstan, Russia, Belarus, Poland, Germany, France, and finally Spain.You may not have the faintest idea where Yiwu is, but businessmen plying their trades across Eurasia, especially from the Arab world, are already hooked on the city “where amazing happens!” We're talking about the largest wholesale center for small-sized consumer goods -- from clothes to toys -- possibly anywhere on Earth.

The Yiwu-Madrid route across Eurasia represents the beginning of a set of game-changing developments. It will be an efficient logistics channel of incredible length. It will represent geopolitics with a human touch, knitting together small traders and huge markets across a vast landmass. It’s already a graphic example of Eurasian integration on the go. And most of all, it’s the first building block on China’s “New Silk Road,” conceivably the project of the new century and undoubtedly the greatest trade story in the world for the next decade.Go west, young Han. One day, if everything happens according to plan (and according to the dreams of China’s leaders), all this will be yours -- via high-speed rail, no less.  The trip from China to Europe will be a two-day affair, not the 21 days of the present moment. In fact, as that freight train left Yiwu, the D8602 bullet train was leaving Urumqi in Xinjiang Province, heading for Hami in China’s far west. That’s the first high-speed railway built in Xinjiang, and more like it will be coming soon across China at what is likely to prove dizzying speed.

Today, 90% of the global container trade still travels by ocean, and that’s what Beijing plans to change.  Its embryonic, still relatively slow New Silk Road represents its first breakthrough in what is bound to be an overland trans-continental container trade revolution.And with it will go a basket of future “win-win” deals, including lower transportation costs, the expansion of Chinese construction companies ever further into the Central Asian “stans,” as well as into Europe, an easier and faster way to move uranium and rare metals from Central Asia elsewhere, and the opening of myriad new markets harboring hundreds of millions of people.So if Washington is intent on “pivoting to Asia,” China has its own plan in mind.  Think of it as a pirouette to Europe across Eurasia.

But when it comes to how a 29-year old IT wizard with little formal education has been able to access a batch of ultra-sensitive secrets of the US intelligence-national security complex, that's a no-brainer; it's all about the gung-ho privatization of spying - referred to by a mountain of euphemisms of the "contractor reliance" kind. In fact the bulk of the hardware and software used by the dizzying network of 16 US intelligence agencies is privatized. A Washington Post investigation found out that US homeland security, counter-terror and spy agencies do business with over 1,900 companies. [2] An obvious consequence of this contractor tsunami - hordes of "knowledge" high-tech proletarians in taupe cubicles - is their indiscriminate access to ultra-sensitive security. A systems administrator like Snowden can have access to practically everything.

So then we may have a case of Hong Kong and Beijing having to reach an agreement. Yet even if they decided to extradite Snowden, he could argue in court this was "an offence of a political character". The bottom line - this could drag on for years. And it's too early to tell how Beijing would play it for maximum leverage. A "win-win" situation from a Chinese point of view would be to balance its commitment to absolute non-interference in foreign domestic affairs, its desire not to rock the fragile bilateral relation boat, but also what non-pivoting move the US government would offer in return.

Since 1996, before the British handover to China, an extradition treaty applies between the tiger and the wolf. [4] The US Department of Justice is already surveying its options. It's important to remember that the Hong Kong judicial system is independent from China's - according to the Deng Xiaoping-conceptualized "one country, two systems". As much as Washington may go for extraditing Snowden, he may also apply for political asylum. In both cases he may stay in Hong Kong for months, in fact years. The Hong Kong government cannot extradite anyone claiming he will be persecuted in his country of origin. And crucially, article 6 of the treaty stipulates, "a fugitive offender shall not be surrendered if the offence of which that person is accused or was convicted is an offence of a political character." Another clause stipulates that a fugitive shall not be surrendered if that implicates "the defense, foreign affairs or essential public interest or policy" of - guess who - the People's Republic of China.