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Paul Merrell

Russia Provides Syria With Advanced Missiles - NYTimes.com - 0 views

  • Russia has sent advanced antiship cruise missiles to Syria, a move that illustrates the depth of its support for the Syrian government led by President Bashar al-Assad, American officials said Thursday.
  • Russia has previously provided a version of the missiles, called Yakhonts, to Syria. But those delivered recently are outfitted with an advanced radar that makes them more effective, according to American officials who are familiar with classified intelligence reports and would only discuss the shipment on the basis of anonymity. Unlike Scud and other longer-range surface-to-surface missiles that the Assad government has used against opposition forces, the Yakhont antiship missile system provides the Syrian military a formidable weapon to counter any effort by international forces to reinforce Syrian opposition fighters by imposing a naval embargo, establishing a no-fly zone or carrying out limited airstrikes. “It enables the regime to deter foreign forces looking to supply the opposition from the sea, or from undertaking a more active role if a no-fly zone or shipping embargo were to be declared at some point,” said Nick Brown, editor in chief of IHS Jane’s International Defense Review. “It’s a real ship killer.”
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    This article is from May 16, 2013. The ship-killer missiles described have a range of 180 miles, easily capable of reaching the U.S. destroyers poised to strike Syria with cruise missiles and other U.S. Navy ships stationed in the eastern Mediterranean Sea, even those docked in Cyprus.  So the question becomes what Syria does if it detects inbound U.S. missile? Does Syria, acting on the likelihood that the Yakhonts missiles may be destroyed by the inbound missiles, fire their own missiles at U.S. Navy ships? Or does Syria hold off in fear of escalation by the U.S.? Depending on Syria not to counter-strike seems like a risk prudent U.S. admirals would not take. But there the destroyers, the Nimitz aircraft carrier group, and a Marine troop carrier sit well within range.  This and other factors leave me with some doubt that Obama has any real desire or intent to carry out the attack. 
Paul Merrell

Furious Russia, Downgraded To Just Above Junk By S&P, Proposes "Scorched Earth" Retaliation Against NATO Countries | Zero Hedge - 0 views

  • a few hours ago that joke of a rating agency, Standard & Poor's, which also earlier announced it was "affirming" France at an AA rating making it very clear it will no longer accept being sued for telling the truth and downgrading sovereigns or otherwise have its offices abroad raided, not only upgraded Cyprus from B- to B (please deposits your funds in Cyprus banks now: they are safe, S&P promises), but - far more importantly - delivered a political message to the Kremlin, and downgraded Russia from BBB to BBB-, one short notch away from junk status. This was the first downgrade of Russia by S&P since December 2008.
  • Russia's response was prompt. First, in retaliation to the downgrade, Russian economy minister Alexei Ulyukaev said S&P’s downgrade of Russia’s rating was expected by investors, won’t significantly change their behavior, adding the obvious that the decision to cut Russia’s rating was partly political, partly based on economic situation. In other words, entirely symbolic - it is not as if Russia has access to bond markets anyway, plus as we wrote earlier this week in "Why Putin Is Smiling At The Bond Market's Blockade Of Russia", it is not as if it needs them. But far more importantly, and ahead of yet another round of western sanctions which appears imminent unless Obama is to look even more powerless than he currently is (granted, a difficult achievement), Russian presidential adviser Sergei Glazyev proposed plan of 15 measures to protect country’s economy if sanctions applied, Vedomosti newspaper reports, citing Glazyev’s letter to Finance Ministry. According to Vedomosti as Bloomberg reported, Glazyev proposed:
  • Russia should withdraw all assets, accounts in dollars, euros from NATO countries to neutral ones Russia should start selling NATO member sovereign bonds before Russia’s foreign-currency accounts are frozen Central bank should reduce dollar assets, sell sovereign bonds of countries that support sanctions Russia should limit commercial banks’ FX assets to prevent speculation on ruble, capital outflows Central bank should increase money supply so that state cos., banks may refinance foreign loans Russia should use national currencies in trade with customs Union members, other non-dollar, non-euro partners In other words, a full-blown scorched earth campaign by Russia.
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  • Granted, Russian holdings of US Treasurys are not that substantial (and could be monetized entirely in three months of POMO by the Fed), and western financial linkages to Russia, aside from trade routes, are not life-threatening, but if Russia were to take the baton, and other BRIC countries, already furious by the recent US decision to not boost their IMF status, follow suit, then Obama's life is about to become a living nightmare. Especially, if that most important BRIC member - China - does any of the many things it can do to indicate if, in this brand new Cold War, it is with or against the US... Finally, those curious what are the linkages between the west and Russia are, review our recent post on the matter: All You Need To Know About Russia, In Charts.
Paul Merrell

Are Israel and Hamas really talking about ending Gaza siege? | The Electronic Intifada - 0 views

  • Israel and the Palestinian resistance organization Hamas may be close to a long-term truce for Gaza, an advisor to Turkish Prime Minister Ahmet Davutoğlu has said. Although murmurs of a such a deal have appeared in media for months, the official’s comments would appear to give them slightly more weight. In an interview with Alresalah, a Gaza-based newspaper close to Hamas, on Monday, Yasin Aktay also said that Israel and Turkey were nearing a deal over Israel’s attack on the Mavi Marmara. Israel’s May 2010 assault on the ship, part of a Gaza-bound flotilla, killed nine Turkish citizens and a Turkish teen who held US citizenship, badly damaging relations between the two countries. The Turkish official said there had been significant progress toward a long-term truce that would end Israel’s 8-year blockade of Gaza. Aktay, deputy chairman of Turkey’s ruling AK party, said that the recent visit of Hamas leader Khaled Meshaal to Ankara was related to the effort. Up until now there has been no visible progress on the long-term truce that was supposed to be discussed within weeks of the 26 August 2014 ceasefire that ended Israel’s 51-day assault on Gaza. More than 2,200 Palestinians, including 551 children, were killed in Gaza last summer and more than 100,000 people remain in need of permanent shelter due to the lack of reconstruction since then.
  • “The talks about the Mavi Marmara are taking place in a manner that is linked and intertwined to Hamas’ talks about the truce,” Aktay told Alresalah, adding that the siege of Gaza had become a “Turkish issue.” In September 2011, Turkey imposed unprecedented sanctions on Israel, reducing diplomatic and military ties over the Mavi Marmara attack. Turkey has demanded an Israeli apology, compensation for its victims and an end to the blockade of Gaza. Aktay said that Turkey had pledged to build a seaport and rebuild Gaza’s airport if an agreement is reached. He also said that there had been talks between Turkey and the government of Cyprus over the establishment of a maritime corridor to Gaza via Cyprus. A working paper proposing such a link was published by the Gaza-based human rights organization Euromid last year. But Aktay acknowledged there have been significant obstacles: “Every time we reach an advanced stage in the negotiations on Mavi Marmara, Israel attacks Gaza again and things go back to zero.”
Gary Edwards

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

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

Bail-In and the Financial Stability Board: The Global Bankers' Coup | nsnbc international - 0 views

  • Ellen H. Brown (WoD) : On December 11, 2014, the US House passed a bill repealing the Dodd-Frank requirement that risky derivatives be pushed into big-bank subsidiaries, leaving our deposits and pensions exposed to massive derivatives losses. The bill was vigorously challenged by Senator Elizabeth Warren; but the tide turned when Jamie Dimon, CEO of JPMorganChase, stepped into the ring. Perhaps what prompted his intervention was the unanticipated $40 drop in the price of oil. As financial blogger Michael Snyder points out, that drop could trigger a derivatives payout that could bankrupt the biggest banks. And if the G20’s new “bail-in” rules are formalized, depositors and pensioners could be on the hook. The new bail-in rules were discussed in my last last article entitled “New G20 Rules: Cyprus-style Bail-ins to Hit Depositors AND Pensioners.” They are edicts of the Financial Stability Board (FSB), an unelected body of central bankers and finance ministers headquartered in the Bank for International Settlements in Basel, Switzerland. Where did the FSB get these sweeping powers, and is its mandate legally enforceable?
  • Those questions were addressed in an article I wrote in June 2009, two months after the FSB was formed, titled “Big Brother in Basel: BIS Financial Stability Board Undermines National Sovereignty.” It linked the strange boot shape of the BIS to a line from Orwell’s 1984: “a boot stamping on a human face—forever.” The concerns raised there seem to be materializing, so I’m republishing the bulk of that article here. We need to be paying attention, lest the bail-in juggernaut steamroll over us unchallenged. The Shadowy Financial Stability Board Alarm bells went off in April 2009, when the Bank for International Settlements (BIS) was linked to the new Financial Stability Board (FSB) signed onto by the G20 leaders in London. The FSB was an expansion of the older Financial Stability Forum (FSF) set up in 1999 to serve in a merely advisory capacity by the G7 (a group of finance ministers formed from the seven major industrialized nations). The chair of the FSF was the General Manager of the BIS. The new FSB was expanded to include all G20 members (19 nations plus the EU).
  • Formally called the “Group of Twenty Finance Ministers and Central Bank Governors,” the G20 was, like the G7, originally set up as a forum merely for cooperation and consultation on matters pertaining to the international financial system. What set off alarms was that the new Financial Stability Board had real teeth, imposing “obligations” and “commitments” on its members; and this feat was pulled off without legislative formalities, skirting the usual exacting requirements for treaties. It was all done in hasty response to an “emergency.” Problem-reaction-solution was the slippery slope of coups. Buried on page 83 of an 89-page Report on Financial Regulatory Reform issued by the US Obama administration was a recommendation that the FSB strengthen and institutionalize its mandate to promote global financial stability. It sounded like a worthy goal, but there was a disturbing lack of detail. What was the FSB’s mandate, what were its expanded powers, and who was in charge? An article in The London Guardian addressed those issues in question and answer format:
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  • For three centuries, private international banking interests have brought governments in line by blocking them from issuing their own currencies and requiring them to borrow banker-issued “banknotes” instead. Political colonialism is now a thing of the past, but under the new FSB guidelines, nations could still be held in feudalistic subservience to foreign masters. Consider this scenario: the new FSB rules precipitate a massive global depression due to contraction of the money supply. XYZ country wakes up to the fact that all of this is unnecessary – that it could be creating its own money, freeing itself from the debt trap, rather than borrowing from bankers who create money on computer screens and charge interest for the privilege of borrowing it. But this realization comes too late: the boot descends and XYZ is crushed into line. National sovereignty has been abdicated to a private committee, with no say by the voters. Marilyn Barnewall, dubbed by Forbes Magazine the “dean of American private banking,” wrote in an April 2009 article titled “What Happened to American Sovereignty at G-20?”: It seems the world’s bankers have executed a bloodless coup and now represent all of the people in the world. . . . President Obama agreed at the G20 meeting in London to create an international board with authority to intervene in U.S. corporations by dictating executive compensation and approving or disapproving business management decisions.  Under the new Financial Stability Board, the United States has only one vote. In other words, the group will be largely controlled by European central bankers. My guess is, they will represent themselves, not you and not me and certainly not America.
  • Are these commitments legally binding? Adoption of the FSB was never voted on by the public, either individually or through their legislators. The G20 Summit has been called “a New Bretton Woods,” referring to agreements entered into in 1944 establishing new rules for international trade. But Bretton Woods was put in place by Congressional Executive Agreement, requiring a majority vote of the legislature; and it more properly should have been done by treaty, requiring a two-thirds vote of the Senate, since it was an international agreement binding on the nation. “Bail-in” is not the law yet, but the G20 governments will be called upon to adopt the FSB’s resolution measures when the proposal is finalized after taking comments in 2015. The authority of the G20 has been challenged, but mainly over whether important countries were left out of the mix. The omitted countries may prove to be the lucky ones, having avoided the FSB’s net.
Paul Merrell

Portuguese Debt Crisis Brings New Trouble for Euro - NYTimes.com - 0 views

  • Just weeks after European leaders tamped down a banking crisis in Cyprus, troubles in the euro zone have again reared their head, this time in Portugal.
  • “The risks in the euro zone have increased markedly over the past six weeks or so,” wrote Nicholas Spiro, managing director of Spiro Sovereign Strategy, a London-based consultancy that assesses risk on sovereign debt. A critical moment for the latest trouble took place on Friday, when Portugal’s Constitutional Court struck down four of nine contested austerity measures that the government introduced as part of a 2013 budget that included about 5 billion euros, or $6.5 billion, of tax increases and spending cuts. The ruling left the government short about 1.4 billion euros of expected revenue, or more than one-fifth of the 2013 austerity package.
  • Specifically, the court, which began reviewing the legality of the government’s austerity measures in January, ruled as unconstitutional and discriminatory the government’s plans to cut holiday bonuses for civil servants and pensioners, as well as to reduce sick leave and unemployment benefits.
Paul Merrell

Forex Flash: Capital flight abounds in Eurozone - UBS - 0 views

  • According to Research Analyst Gareth Berry at UBS, "We expect that the theme of capital flight out of the Eurozone will continue to run for some time in the wake of the Cyprus bailout." The immediate focus, of course, is on deposit flight but capital controls will be expected to do their job for now. Of course, the images of bank runs and deposit flight are powerful, but we expect capital flight in the form of investment outflows is even more pernicious. Deposit flight exposes funding gaps on a banking-sector level, but capital outflows, be they via portfolio flows or FDI reversals, tend to expose the funding gaps of an entire nation, a fact that emerging markets can strongly attest to. As timely data is still rather difficult to come by, we use our Equity Flow monitor from last week to see if asset managers are now liquidating underlying investments in the Eurozone, especially taking into account that our FX Flow Monitor has been showing such trends for several weeks.
  • Unsurprisingly, the Eurozone suffered the most out of all G10 markets we track, but the distribution of selling was even more troubling. Eurozone-based clients actually registered flat net flow - i.e. repatriation back to the Eurozone offsets their overseas interest. However, for non-Eurozone based investors it was one way: the US and UK both registered strong inflows last week but almost all of the buying came from their own clients leaving the Eurozone. "If past history is anything to go by, the Eurozone's funding gap may widen further and it's the real economy, beyond the banks, that will suffer." Berry warns.
Paul Merrell

Aleksej Gubarev, of Russia's Webzilla, says hacking charges false | McClatchy DC - 0 views

  • A Russian venture capitalist and tech expert whose name and company are mentioned in the now-notorious document alleging connections between the Donald Trump campaign and Russian hackers says no intelligence officers have ever contacted him about the accusations, which he says are false.A report compiled by a former Western intelligence official as opposition research against Trump was made public Tuesday when BuzzFeed posted its 35 pages. The document included unsubstantiated claims of collusion between the Trump campaign team and the Kremlin.
  • It also alleged that global tech firm XBT Holding, with operations in Dallas, was instrumental in the hack of leaked Democratic Party emails that embarrassed Hillary Clinton and fellow Democrats.XBT, owner of Dallas-based enterprise-hosting company Webzilla, is run by a successful Russian tech startup expert, Aleksej Gubarev. In a phone interview from Cyprus, where he said he’d lived since 2002, Gubarev said he was surprised to see his name in the report.“I don’t know why I was there,” Gubarev said, adding that perhaps a competitor sought to discredit him. “I still don’t understand the true reason for this report.”The salacious innuendoes in the periodic reports about Trump’s personal life dominated social media headlines. The mention of Webzilla and Gubarev was among the more specific allegations: that XBT and affiliates “had been using botnets and porn traffic to transmit viruses, plant bugs, steal data and conduct ‘altering operations’ against the Democratic Party leadership.” Gubarev said he operated 75,000 servers across the globe and got real-time information if there had been hacking or illicit activity tied to his businesses. There is no evidence of that, he said, adding that no one has contacted him.“I have a physical office in Dallas. Nobody contacted me,” said Gubarev, adding that 40 percent of his business is handled over the servers it runs in Dallas and the United States accounts for about 27 percent of his global business.
  • McClatchy has reported that Sen. John McCain, R-Ariz., gave the bulk of the report to FBI Director James Comey on Dec. 9. The final pages of the report are dated Dec. 11. McClatchy had the report earlier but couldn’t verify any of its allegations. A federal law enforcement source told McClatchy that the document was being examined as part of a broader FBI inquiry into Russia’s influence on the U.S. election but wouldn’t characterize its credibility. A source familiar with the former Western intelligence expert who compiled the dossier told McClatchy that the ex-spy has extensive experience in tracking activities in the Kremlin.The report alleges that Gubarev and another hacking expert were recruited under duress by the FSB, the Russian intelligence-agency successor to the KGB. Gubarev said he had not been threatened or blackmailed, nor had his mother, who lives in Russia.
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  • XBT offers an array of tech services, from dedicated hosting of servers and cloud-based storage to developing apps for mobile phones and offering virtual private servers. His company advertises specialized services to software developers, advertisers, gaming companies and electronic-commerce enterprises. It also operates data centers in Russia, Asia, Europe and Dallas.
  • If law enforcement wants to talk with him, Gubarev said, his door is open.“I’m ready for any investigation. I’m ready to cooperate with everybody, he said.
Paul Merrell

Russia Wants US To Attend Syria Talks: Mevlüt Cavusoglu - nsnbc international | nsnbc international - 0 views

  • Turkey’s Foreign Minister Mevlüt Cavusoglu told the press that Russia has agreed that the United States should be involved in talks on Syria’s political future scheduled to take place in the Kazakh capital of Astana later this month.
  • Cavusoglu made his remark on the Syria talks to the press on the sidelines of an international conference on Cyprus in Geneva on January 12. The talks in Astana are scheduled to start on January 23. The Turkish Foreign Minister said: “The United States should definitely be invited, and that is what we agreed with Russia. … Nobody can ignore the role of the United States. And this is a principled position of Turkey”. The Russian Presidency, for its part, did not comment on whether the USA would be invited for the talks in Astana. Kremlin spokesman Dmitry Peskov told the press that he could say anything about this at the current time. He added, however, that Russia was “interested in the broadest possible representation of the parties who have a bearing on the prospects of a political settlement in Syria.”
  • Moscow reported on January 13 that most major Syrian opposition groups probably would attend the talks in Astana. The talks in Astana follow up on a Russian – Turkish – brokered ceasefire in Syria last month. The ceasefire has largely been kept although smaller violations occur on a daily basis. The ceasefire does not encompass the Islamic State (ISIS, ISIL, Daesh), Jabhat al-Nusra, and other al-Qaeda affiliates. The ceasefire went into effect on Dec. 30, 2016, following the liberation of Aleppo, and has brought relative calm to much of Syria. Cavusoglu stressed that: “We need to maintain the cease-fire. .. This is essential for the Astana talks.” He added that official invitations for the talks would be sent out early next week and underpinned that Washington should be present.
Paul Merrell

Syria crisis: Britain will play active role in military action despite vote defeat - Telegraph - 0 views

  • Britain will continue to play an active role in any military strikes on Syria, despite David Cameron’s vow not to join the attacks following his Parliamentary defeat last week.
  • The UK’s intelligence-gathering assets based in the Mediterranean are to provide the US military with information, as it prepares to carry out cruise missiles strikes against President Bashar al-Assad. Whitehall sources said Britain’s decision not to take part in attacks punishing the regime for using chemical weapons only covered its Armed Forces, and the sharing of intelligence would continue. GCHQ’s powerful eavesdropping facilities on Cyprus, around only 100 miles from the Syrian coast, are expected to play a key role in intelligence gathering for military action.
Paul Merrell

Russia Seeks Access to Bases in Eight Countries for Its Ships and Bombers | CNS News - 0 views

  • At a time of escalated tensions with the West over Ukraine, Russia says it is negotiating with eight governments around the world for access to military facilities, to enable it to extend its long-range naval and strategic bomber capabilities. Defense Minister Sergei Shoigu said Wednesday the military was engaged in talks with Cuba, Venezuela, Nicaragua, Algeria, Cyprus, the Seychelles, Vietnam and Singapore. “We need bases for refueling near the equator, and in other places,” ITAR-Tass quoted him as saying. Russia is not looking to establish bases in those locations, but to reach agreement to use facilities there when required.
Paul Merrell

U.S. forces seize tanker carrying oil from Libya rebel port - Yahoo News India - 0 views

  • U.S. special forces have seized a tanker that fled with a cargo of oil from a Libyan port controlled by anti-government rebels, halting their attempt to sell crude on the global market. Gunmen demanding regional autonomy and a share of oil wealth had managed to load the ship, which escaped Libya's navy and triggered a crisis that prompted parliament to sack the prime minister. A U.S. SEAL commando team boarded the tanker Morning Glory from a Naval special warfare rigid inflatable boat as it sat in international waters off Cyprus on Sunday night. The seizure was approved by U.S. President Barack Obama and requested by the Libyan and Cypriot governments, Pentagon Press Secretary John Kirby said.
Paul Merrell

Saudis offer Russia secret oil deal if it drops Syria - Telegraph - 0 views

  • Saudi Arabia has secretly offered Russia a sweeping deal to control the global oil market and safeguard Russia’s gas contracts, if the Kremlin backs away from the Assad regime in Syria.
  • The revelations come amid high tension in the Middle East, with US, British, and French warship poised for missile strikes in Syria. Iran has threatened to retaliate. The strategic jitters pushed Brent crude prices to a five-month high of $112 a barrel. “We are only one incident away from a serious oil spike. The market is a lot tighter than people think,” said Chris Skrebowski, editor of Petroleum Review. Leaked transcripts of a closed-door meeting between Russia’s Vladimir Putin and Saudi Prince Bandar bin Sultan shed an extraordinary light on the hard-nosed Realpolitik of the two sides. Prince Bandar, head of Saudi intelligence, allegedly confronted the Kremlin with a mix of inducements and threats in a bid to break the deadlock over Syria. “Let us examine how to put together a unified Russian-Saudi strategy on the subject of oil. The aim is to agree on the price of oil and production quantities that keep the price stable in global oil markets,” he said at the four-hour meeting with Mr Putin. They met at Mr Putin’s dacha outside Moscow three weeks ago.
  • “We understand Russia’s great interest in the oil and gas in the Mediterranean from Israel to Cyprus. And we understand the importance of the Russian gas pipeline to Europe. We are not interested in competing with that. We can cooperate in this area,” he said, purporting to speak with the full backing of the US.
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  • The talks appear to offer an alliance between the OPEC cartel and Russia, which together produce over 40m barrels a day of oil, 45pc of global output. Such a move would alter the strategic landscape. The details of the talks were first leaked to the Russian press. A more detailed version has since appeared in the Lebanese newspaper As-Safir, which has Hezbollah links and is hostile to the Saudis. As-Safir said Prince Bandar pledged to safeguard Russia’s naval base in Syria if the Assad regime is toppled, but he also hinted at Chechen terrorist attacks on Russia’s Winter Olympics in Sochi if there is no accord. “I can give you a guarantee to protect the Winter Olympics next year. The Chechen groups that threaten the security of the games are controlled by us,” he allegedly said. Prince Bandar went on to say that Chechens operating in Syria were a pressure tool that could be switched on an off. “These groups do not scare us. We use them in the face of the Syrian regime but they will have no role in Syria’s political future.”
  • The Putin-Bandar meeting was stormy, replete with warnings of a “dramatic turn” in Syria. Mr Putin was unmoved by the Saudi offer, though western pressure has escalated since then. “Our stance on Assad will never change. We believe that the Syrian regime is the best speaker on behalf of the Syrian people, and not those liver eaters,” he said, referring to footage showing a Jihadist rebel eating the heart and liver of a Syrian soldier. Prince Bandar in turn warned that there can be “no escape from the military option” if Russia declines the olive branch. Events are unfolding exactly as he foretold.
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    Note particularly that the Saudi intelligence chief allegedly negotiated on the U.S. behalf as well. This tends to support my conclusion in a comment yesterday that U.S. military strikes on Syria could not happen without agreement by the Russians not to react militarily. 
Gary Edwards

The Daily Bell - Doug Casey on the Continuing Debasement of Money, Language and Banking in the Modern Age - 0 views

  • This isn't going to last because the way you get wealthy is by producing more than you consume and saving the difference – not by consuming more than you produce, and borrowing the difference. With the Fed keeping interest rates at artificially low levels, hoping to increase consumption, they're making it very foolish to save – when you get ½% or 1% on your savings. So people are saving less and they're borrowing more than they otherwise would. This is a formula for making things worse, not better.
  • They are, idiotically, doing exactly the opposite of what they should be.
  • In point of fact, the Fed should be abolished; the market, not bureaucrats, should determine interest rates. We wouldn't be in this pickle to start with if the government wasn't involved in the economy.
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  • The Chinese, the Japanese – everybody is selling, trying to pass the Old Maid card of US Government debt, which represents return–free risk. Nobody other than the Fed is buying, and interest rates would skyrocket if they stopped. The more QE there is, the more distortions it will cause, however, making for a bigger disaster the longer it goes on.
  • Will the Fed continue to inflate the money supply? Doug Casey: They have to, because with the huge amount of debt in the world – and the amount of debt in the world has increased something like 40 or 50% just since the Greater Depression started – if they don't keep increasing the amount of money in the world then nobody's going to be able to service the huge amount of debt that is out there. So I don't see anything changing in the years to come. They've truly painted themselves into a corner. They're caught between Scylla and Charybdis, and we don't have Odysseus steering the ship of state.
  • Let me say, again, that the Fed serves no useful purpose and it should be abolished. Central banks create "super money" by buying government or other debt with new currency units that they credit to the sellers' accounts at commercial banks. That's the actual engine of inflation.
  • But it's greatly compounded in the commercial banking system through fractional reserve lending – which would not be possible without a central bank. Fractional reserve lending allows banks to multiply the money supply several times.
  • If $100 of Fed super money, freshly created, is deposited in a commercial bank like Chase or Citibank, then $90 can be lent out with a 10% reserve, the current number. That money is redeposited. They'll then lend out 90% of that $90, or $81, and then 90% of that $81, so it multiplies.
  • Central banking and fractional reserve lending go hand-in-hand.
  • Without a central bank, any bank that engaged in fractional reserve banking would be considered guilty of fraud and, when discovered, would be punished by a bank run, followed by criminal charges. The point to be made here is that the entire banking system today is totally unsound and totally corrupt.
  • In a sound banking system you have two types of deposits – checking account (or demand) deposits, and savings account (or time) deposits. They are completely different businesses. With demand deposits, you pay the bank to store your money securely, and write checks against it. A bank should no more lend out demand deposit money than Allied Storage should lend out the furniture you're paying them to store.
  • Savings accounts are completely different. Here you lend money to a bank, perhaps at 3%, and they relend it at 6%, making 3% to cover costs, risks and profits. A sound bank not only has to match the maturities of its deposits with the maturities of its loans, but must insure loans are both highly secured and self-liquidating.
  • These principles have been totally lost. Today banks operate as hedge funds.
  • As an aside, if someone were to set up a well-capitalized 100% reserve bank in a tax haven, especially using gold as an alternative currency, it would be immensely successful in the years to come – when most all conventional banks will fail.
  • By all historical, normal parameters, the stock market is greatly overvalued.
  • The trillions of new currency units that the Fed is creating are creating bubbles, and one of them is in the stock market. The biggest bubble, of course, is in the bond market – that's a super bubble.
  • Not only does the dollar have no real value but the banks you keep it in are all insolvent.
  • There are few sound investments out there. Today there are no investments; there are only speculations.
  • From the economist's point of view, the bubbles created by central banking are a disaster, but from a speculator's point of view they're a godsend. It's becoming harder and harder to be an investor; I define an investor as someone who allocates capital to productive business. It's hard to be an investor because you now have to spend more money on lawyers than on engineers and workers if you want to produce something. You're increasingly forced to be a speculator in today's climate.
  • Stock and bond markets all over the world are overpriced – with the exception of Russian stocks right now; they could be a very interesting speculation. I wouldn't touch anything in China yet, because all the Chinese banks are going to go bust.
  • The Chinese have been more profligate inflating the yuan than the Americans have been with the dollar. It's fantastic what the Chinese have done since Deng liberalized the economy in the early '80s, but now's not a time to be in their markets.
  • You've got to remember there are two types of people in the world: people who want to control material reality and people who want to control other people.
  • It's that second type who go into politics. They play games – here it's called the Great Game, which dignifies it in a way it shouldn't be – with other people's lives and property. It's been this way ever since the state was created about 5,000 years ago, and I don't think you should play games with other people's lives.
  • On the bright side, there are more scientists and engineers alive today than in all of human history put together, and so technology is advancing more rapidly than ever for that reason. That's a huge plus.
  • The second good thing is that the average person, at least those who aren't on welfare, tries to produce more than he consumes. That creates capital.
  • But I'm afraid that Western civilization reached its peak before World War I. World War I destroyed a huge amount of capital and, more importantly, it changed the moral bases of so many things.
  • Then World War II institutionalized the State as the most important part of society – which is perverse, because the state is actually the enemy of civil society.
  • I think Western civilization reached its peak in 1913, when it reached its maximum geographical extent. That was coincidental with the peak of its technological and philosophical influence on the world, much the way the Roman Empire reached its peak at about the end of the first century, then went down, slowly at first and then quickly. That's what's happening to the West.
  • Relative to the rest of the world, and contribution to world production, our piece of the economic pie is getting smaller and smaller. If we have another serious war it would be absolutely smaller, and the final nail in the coffin. Meanwhile, the US, with its bloated military, is just itching for another war. It's out of control, and unlikely to change at this point. That's a big trend that is in motion that I think is going to stay in motion.
  • Europe is in particularly bad shape. The place is a fascist/socialist disaster.
  • It was possible for the average European to keep his head above water through tax evasion in the past, but now those governments have broken bank secrecy everywhere, and it will destroy a lot of capital.
  • The "nation-state" is a really stupid and dysfunctional idea, and I'm glad it's on its way out.
  • That said, even the US, which from a cultural point of view is as much of a country as any place in the world, should actually break up into at least five or six regions.
  • Canada should break up into at least five or six regions initially.
  • I don't think politically; politics is the problem, not the solution. I think that the ideal solution is for every individual to opt out of the current system. When they give a war, you don't come. When they give a tax, you don't pay. When they give an election, you don't vote. You even try not to use their currency and their banking system. T
  • he ideal thing is to let the system collapse under its own weight as opposed to starting a new political party and then continuing to act politically, which is to say to use force on other people.
  • Market risk is huge today, but political risk is even bigger. One indication of that was, when the banks in Cyprus went bust some months ago, the government essentially confiscated everybody's account above 100,000 euros, in what they called a "bail-in."
  • You need several options. It seems like people haven't learned anything from what happened in Russia in 1917, Germany in 1933, China in 1948, Cuba in 1959, or Vietnam in 1975. Rwanda, Cambodia, Yugoslavia, Zimbabwe, Ukraine, Syria ... there are lots of examples and these things can and will eventually happen almost everywhere. When the chimpanzees go crazy, you don't want to be where they are. You've got to have a Plan B. You've got to have a crib out of that political jurisdiction. Acting like a plant, and staying put, isn't a good survival strategy for a human.
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    "Doug Casey: I don't see a real recovery until they stop debasing the currency, radically cut government spending and taxation and eliminate most regulation. In other words, cease doing the things that caused this depression. And that's not going to happen until there's a collapse of the current order. Things have cyclically improved since the height of the crisis of 2008-09. The trillions of currency units created by the Federal Reserve have jammed the stock market higher and kept the big banks from going under. What surprises me is that retail prices have not moved as significantly as I would have expected. The reason, I believe, is that most of that money is still sitting in financial institutions. It has gone into cash out of fear, into stocks because they represent real wealth with earning power and into various speculative assets like artwork and collectible cars. Real estate has recovered somewhat, not because of strong fundamentals but strictly because of money creation. This isn't going to last because the way you get wealthy is by producing more than you consume and saving the difference - not by consuming more than you produce, and borrowing the difference. With the Fed keeping interest rates at artificially low levels, hoping to increase consumption, they're making it very foolish to save - when you get ½% or 1% on your savings. So people are saving less and they're borrowing more than they otherwise would. This is a formula for making things worse, not better. They are, idiotically, doing exactly the opposite of what they should be. Although, I hasten to add, I hate to pontificate on what the Fed "should" do. In point of fact, the Fed should be abolished; the market, not bureaucrats, should determine interest rates. We wouldn't be in this pickle to start with if the government wasn't involved in the economy. In fact, if it wasn't for the state, I suspect we'd all have a vastly higher standard of living, and would be colonizing the Moon, Mars and
Paul Merrell

EU Showdown: Greece Takes on the Vampire Squid | nsnbc international - 0 views

  • Greece and the troika (the International Monetary Fund, the EU, and the European Central Bank) are in a dangerous game of chicken. The Greeks have been threatened with a “Cyprus-Style prolonged bank holiday” if they “vote wrong.” But they have been bullied for too long and are saying “no more.”
  • A return to the polls was triggered in December, when the Parliament rejected Prime Minister Antonis Samaras’ pro-austerity candidate for president. In a general election, now set for January 25th, the EU-skeptic, anti-austerity, leftist Syriza party is likely to prevail. Syriza captured a 3% lead in the polls following mass public discontent over the harsh austerity measures Athens was forced to accept in return for a €240 billion bailout. Austerity has plunged the economy into conditions worse than in the Great Depression. As Professor Bill Black observes, the question is not why the Greek people are rising up to reject the barbarous measures but what took them so long. Ireland was similarly forced into an EU bailout with painful austerity measures attached. A series of letters has recently come to light showing that the Irish government was effectively blackmailed into it, with the threat that the ECB would otherwise cut off liquidity funding to Ireland’s banks. The same sort of threat has been leveled at the Greeks, but this time they are not taking the bait.
  • The veiled threat to the Greek Parliament was in a December memo from investment bank Goldman Sachs – the same bank that was earlier blamed for inducing the Greek crisis. Rolling Stone journalist Matt Taibbi wrote colorfully of it: The first thing you need to know about Goldman Sachs is that it’s everywhere. The world’s most powerful investment bank is a great vampire squid wrapped around the face of humanity, relentlessly jamming its blood funnel into anything that smells like money. In fact, the history of the recent financial crisis, which doubles as a history of the rapid decline and fall of the suddenly swindled dry American empire, reads like a Who’s Who of Goldman Sachs graduates.
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  • Goodbye Euro? Greece can regain its sovereignty by defaulting on its debt, abandoning the ECB and the euro, and issuing its own national currency (the drachma) through its own central bank. But that would destabilize the eurozone and might end in its breakup. Will the troika take that risk? 2015 is shaping up to be an interesting year. Ellen H. Brown, Web of Debt
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    Fun! Greece looks to be about to have an Icelandic moment, defaulting on its debt and leaving the Eurozone. The Syriza party is riding a rising trend in popularity running on a sovereignty and anti-foreign bankster platform. That pleasant odor you're sniffing is the return of the drachma. This one is a must-read.    
Paul Merrell

TASS: World - Seven EU countries support lifting sanctions on Russia - source - 0 views

  • BRUSSELS, January 15. /TASS/. Seven EU countries support the lifting of Western sanctions on Russia, a diplomatic source in Brussels told TASS on Thursday. “The sanctions’ lifting has been supported by Austria, Hungary, Italy, Cyprus, Slovakia, France and the Czech Republic,” he said. A European diplomatic source close to the EU Council told TASS previously that foreign ministers of 28 EU member countries would not make any decisions on sanctions against Russia at their first meeting this year in Brussels on January 19. “Russia, of course, will be on the agenda of the Council (EU Council on Foreign Relations), but the specific issue of the sanctions - whether they should be cancelled, softened, renewed or not - will not be raised. The decision on sanctions should be taken in March,” he said.
  • According to another source, although no concrete decisions on sanctions are expected at the upcoming ministerial meeting, “the tone of this issue discussion should be softened.” “Ministers will most likely be preparing the ground for softening the sanctions regime. Perhaps the time has come,” said the diplomat. The Wall Street Journal previously reported with reference to a document prepared by the EU foreign policy service that became available to WSJ reporters that the European Union was ready to soften the anti-Russian sanctions and for partial normalisation of relations with Russia if Moscow changes its stance on the situation in Ukraine. The newspaper says this document should be considered by the participants in the meeting of the EU foreign ministers in Brussels on January 19. The document will be presented in the next few days to the EU member states’ foreign ministers.
Paul Merrell

How 'Free Markets' Defame 'Democracy' | Consortiumnews - 0 views

  • 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.
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  • If a leader seeks to defend his or her nation’s sovereignty by such means as requiring these NGOs to register as “foreign agents,” the offending government is accused of violating “human rights” and becomes a candidate for more aggressive “regime change.”Currently, one of the big U.S. complaints against Russia is that it requires foreign-funded NGOs that seek to influence policy decisions to register as “foreign agents.” The New York Times and other Western publications have cited this 2012 law as proof that Russia has become a dictatorship, while ignoring the fact that the Russians modeled their legislation after a U.S. law known as the “Foreign Agent Registration Act.”So, it’s okay for the U.S. to label people who are paid by foreign entities to influence U.S. policies as “foreign agents” – and to imprison people who fail to register – but not for Russia to do the same. A number of these NGOs in Russia and elsewhere also are not “independent” entities but instead are financed by the U.S.-funded National Endowment for Democracy (NED) and the U.S. Agency for International Development.
  • There is even a circular element to this U.S. complaint. Leading the denunciation of Russia and other governments that restrain these U.S.-financed NGOs is Freedom House, which marks down countries on its “freedom index” when they balk at letting in this back-door U.S. influence. However, over the past three decades, Freedom House has become essentially a subsidiary of NED, a bought-and-paid-for NGO itself.
  • That takeover began in earnest in 1983 when CIA Director William Casey was focused on creating a funding mechanism to support Freedom House and other outside groups that would engage in propaganda and political action that the CIA had historically organized and financed covertly. Casey helped shape the plan for a congressionally funded entity that would serve as a conduit for this U.S. government money.But Casey recognized the need to hide the CIA’s strings. “Obviously we here [at CIA] should not get out front in the development of such an organization, nor should we appear to be a sponsor or advocate,” Casey said in one undated letter to then-White House counselor Edwin Meese III – as Casey urged creation of a “National Endowment.” [See Consortiumnews.com’s “CIA’s Hidden Hand in ‘Democracy’ Groups.”]Casey’s planning led to the 1983 creation of NED, which was put under the control of neoconservative Carl Gershman, who remains in charge to this day. Gershman’s NED now distributes more than $100 million a year, which included financing scores of activists, journalists and other groups inside Ukraine before last year’s coup and now pays for dozens of projects in Venezuela, the new emerging target for “regime change.”
  • But NED’s cash is only a part of how the U.S. government manipulates events in vulnerable countries. In Ukraine, prior to the February 2014 coup, neocon Assistant Secretary of State Victoria Nuland reminded Ukrainian business leaders that the United States had invested $5 billion in their “European aspirations.”Nuland then handpicked who would be the new leadership, telling U.S. Ambassador Geoffrey Pyatt that “Yats is the guy,” referring to “free market” politician Arseniy Yatsenyuk, who not surprisingly emerged as the new prime minister after a violent coup ousted elected President Viktor Yanukovych on Feb. 22, 2014.The coup also started a civil war that has claimed more than 6,000 lives, mostly ethnic Russians in eastern Ukraine who had supported Yanukovych and were targeted for a ruthless “anti-terrorist operation” spearheaded by neo-Nazi and other far-right militias dispatched by the U.S.-backed regime in Kiev. But Nuland blames everything on Russia’s President Vladimir Putin. [See Consortiumnews.com’s “Nuland’s Mastery of Ukraine Propaganda.”]On top of Ukraine’s horrific death toll, the country’s economy has largely collapsed, but Nuland, Yatsenyuk and other free-marketeers have devised a solution, in line with the wishes of the Washington-based International Monetary Fund: Austerity for the average Ukrainian.
  • Before the Senate Foreign Relations Committee on Tuesday, Nuland hailed “reforms” to turn Ukraine into a “free-market state,” including decisions “to reduce and cap pension benefits, increase work requirements and phase in a higher retirement age; … [and] cutting wasteful gas subsidies.”In other words, these “reforms” are designed to make the hard lives of average Ukrainians even harder – by slashing pensions, removing work protections, forcing people to work into their old age and making them pay more for heat during the winter.‘Sharing’ the Wealth In exchange for those “reforms,” the IMF approved $17.5 billion in aid that will be handled by Ukraine’s Finance Minister Natalie Jaresko, who until last December was a former U.S. diplomat responsible for a U.S. taxpayer-financed $150 million investment fund for Ukraine that was drained of money as she engaged in lucrative insider deals – deals that she has fought to keep secret. Now, Ms. Jaresko and her cronies will get a chance to be the caretakers of more than 100 times more money. [See Consortiumnews.com’s “Ukraine’s Finance Minister’s American ‘Values.’”]
  • Other prominent Americans have been circling around Ukraine’s “democratic” opportunities. For instance, Vice President Joe Biden’s son Hunter was named to the board of directors of Burisma Holdings, Ukraine’s largest private gas firm, a shadowy Cyprus-based company linked to Privat Bank.Privat Bank is controlled by the thuggish billionaire oligarch Ihor Kolomoysky, who was appointed by the Kiev regime to be governor of Dnipropetrovsk Oblast, a south-central province of Ukraine. In this tribute to “democracy,” the U.S.-backed Ukrainian authorities gave an oligarch his own province to rule. Kolomoysky also has helped finance paramilitary forces killing ethnic Russians in eastern Ukraine.Burisma has been lining up well-connected American lobbyists, too, some with ties to Secretary of State John Kerry, including Kerry’s former Senate chief of staff David Leiter, according to lobbying disclosures.As Time magazine reported, “Leiter’s involvement in the firm rounds out a power-packed team of politically-connected Americans that also includes a second new board member, Devon Archer, a Democratic bundler and former adviser to John Kerry’s 2004 presidential campaign. Both Archer and Hunter Biden have worked as business partners with Kerry’s son-in-law, Christopher Heinz, the founding partner of Rosemont Capital, a private-equity company.” [See Consortiumnews.com’s “The Whys Behind the Ukraine Crisis.”]
Paul Merrell

Russell Napier Declares November 16, 2014 The Day Money Dies | Zero Hedge - 0 views

  • It is with regret and sadness we announce the death of money on November 16th 2014 in Brisbane, Australia
  • On Sunday in Brisbane the G20 will announce that bank deposits are just part of commercial banks’ capital structure, and also that they are far from the most senior portion of that structure. With deposits then subjected to a decline in nominal value following a bank failure, it is self-evident that a bank deposit is no longer money in the way a banknote is. If a banknote cannot be subjected to a decline in nominal value, we need to ask whether banknotes can act as a superior store of value than bank deposits? If that is the case, will some investors prefer banknotes to bank deposits as a form of savings? Such a change in preference is known as a "bank run."
  • Each country will introduce its own legislation to effect the ‘ bail-in’ agreed by the G20 this coming weekend. The consultation document from the UK’s Treasury lists the following bank creditors who will rank ABOVE depositors in a ‘failing’ financial institution:
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  • The above list makes it clear that deposits larger than GBP85,000 will rank ahead of the bond holders of banks, but they will rank above little else. Importantly, both borrowings of the banks of less than 7 days maturity from other financial institutions and sums owed by banks in their role as counterparties to OTC derivatives will rank above large deposits. Large deposits at banks are no longer money, as this legislation will formally push them down through the capital structure to a position of material capital risk in any "failing" institution. In our last financial crisis, deposits were de facto guaranteed by the state, but from November 16th holders of large-scale deposits will be, both de facto and de jure, just another creditor squabbling over their share of the assets of a failed bank.
  • If we have another Lehman Brothers collapse, large-scale depositors could find themselves in the courts for years before final adjudication on the scale of their losses could be established. During this period would this illiquid asset, formerly called a deposit and now subject to an unknown capital loss, be considered money? Clearly it would not, as its illiquidity and likely decline in nominal value would make it unacceptable as a medium of exchange.
  • From November 16th 2014 the large-scale deposit at a commercial bank is, at best, a lesser form of money, and to many it will cease to be money at all as its nominal value can fall and it could cease to be accepted as a medium of exchange.
  • As the world’s smartest lawyer Charlie Munger is fond of saying, "Show me the incentive and I will show you the outcome." Some simple mathematics reveals that the November 16th announcement will create a very major incentive for investors to change deposits into banknotes.
Gary Edwards

Ukraine's Oligarchs Turn on Each Other | Consortiumnews - 0 views

  • n the never-never land of how the mainstream U.S. press covers the Ukraine crisis, the appointment last year of thuggish oligarch Igor Kolomoisky to govern one of the country’s eastern provinces was pitched as a democratic “reform” because he was supposedly too rich to bribe, without noting that his wealth had come from plundering the country’s economy.In other words, the new U.S.-backed “democratic” regime, after overthrowing democratically elected President Viktor Yanukovych because he was “corrupt,” was rewarding one of Ukraine’s top thieves by letting him lord over his own province, Dnipropetrovsk Oblast, with the help of his personal army.
  • Last year, Kolomoisky’s brutal militias, which include neo-Nazi brigades, were praised for their fierce fighting against ethnic Russians from the east who were resisting the removal of their president. But now Kolomoisky, whose financial empire is crumbling as Ukraine’s economy founders, has turned his hired guns against the Ukrainian government led by another oligarch, President Petro Poroshenko.Last Thursday night, Kolomoisky and his armed men went to Kiev after the government tried to wrest control of the state-owned energy company UkrTransNafta from one of his associates. Kolomoisky and his men raided the company offices to seize and apparently destroy records. As he left the building, he cursed out journalists who had arrived to ask what was going on. He ranted about “Russian saboteurs.”It was a revealing display of how the corrupt Ukrainian political-economic system works and the nature of the “reformers” whom the U.S. State Department has pushed into positions of power. According to BusinessInsider, the Kiev government tried to smooth Kolomoisky’s ruffled feathers by announcing “that the new company chairman [at UkrTransNafta] would not be carrying out any investigations of its finances.”
  • Yet, it remained unclear whether Kolomoisky would be satisfied with what amounts to an offer to let any past thievery go unpunished. But if this promised amnesty wasn’t enough, Kolomoisky appeared ready to use his private army to discourage any accountability.On Monday, Valentyn Nalyvaychenko, chief of the State Security Service, accused Dnipropetrovsk officials of financing armed gangs and threatening investigators, Bloomberg News reported, while noting that Ukraine has sunk to 142nd place out of 175 countries in Transparency International’s Corruptions Perception Index, the worst in Europe.The see-no-evil approach to how the current Ukrainian authorities do business relates as well to Ukraine’s new Finance Minister Natalie Jaresko, who appears to have enriched herself at the expense of a $150 million U.S.-taxpayer-financed investment fund for Ukraine.
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  • Regarding Kolomoisky’s claim about “Russian saboteurs,” the government said that was not the case, explaining that the clash resulted from the parliament’s vote last week to reduce Kolomoisky’s authority to run the company from his position as a minority owner. As part of the shakeup, Kolomoisky’s protégé Oleksandr Lazorko was fired as chairman, but he refused to leave and barricaded himself in his office, setting the stage for Kolomoisky’s arrival with armed men.On Tuesday, the New York Times reported on the dispute but also flashed back to its earlier propagandistic praise of the 52-year-old oligarch, recalling that “Mr. Kolomoisky was one of several oligarchs, considered too rich to bribe, who were appointed to leadership positions in a bid to stabilize Ukraine.”Kolomoisky also is believed to have purchased influence inside the U.S. government through his behind-the-scenes manipulation of Ukraine’s largest private gas firm, Burisma Holdings. Last year, the shadowy Cyprus-based company appointed Vice President Joe Biden’s son, Hunter Biden, to its board of directors. Burisma also lined up well-connected lobbyists, some with ties to Secretary of State John Kerry, including Kerry’s former Senate chief of staff David Leiter, according to lobbying disclosures.
  • Jaresko, a former U.S. diplomat who received overnight Ukrainian citizenship in December to become Finance Minister, had been in charge of the Western NIS Enterprise Fund (WNISEF), which became the center of insider-dealing and conflicts of interest, although the U.S. Agency for International Development showed little desire to examine the ethical problems – even after Jaresko’s ex-husband tried to blow the whistle. [See Consortiumnews.com’s “Ukraine Finance Minister’s American ‘Values.’”]Passing Out the BillionsJaresko will be in charge of dispensing the $17.5 billion that the International Monetary Fund is allocating to Ukraine, along with billions of dollars more expected from U.S. and European governments.
  • As Time magazine reported, “Leiter’s involvement in the firm rounds out a power-packed team of politically-connected Americans that also includes a second new board member, Devon Archer, a Democratic bundler and former adviser to John Kerry’s 2004 presidential campaign. Both Archer and Hunter Biden have worked as business partners with Kerry’s son-in-law, Christopher Heinz, the founding partner of Rosemont Capital, a private-equity company.”According to investigative journalism in Ukraine, the ownership of Burisma has been traced to Privat Bank, which is controlled by Kolomoisky.So, it appears that Ukraine’s oligarchs who continue to wield enormous power inside the corrupt country are now circling each other over what’s left of the economic spoils and positioning themselves for a share of the international bailouts to come.
  • As for “democratic reform,” only in the upside-down world of the State Department’s Orwellian “information war” against Russia over Ukraine would imposing a corrupt and brutal oligarch like Kolomoisky as the unelected governor of a defenseless population be considered a positive.(Early Wednesday morning, President Poroshenko dismissed Kolomoisky from his post as Dnipropetrovsk regional governor.)
  •  
    Another of the greatest U.S. exports: corruption.
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    Corporate oligarchs leading private but well armed armies in raids against the Ukrainian government holdings - controlled by other corporate oligarchs? This article dives into the mess that the USA and European NATO allies have stirred in the Ukraine, and through this lens we get to see what the world will look like when corporate oligarchs and their Bankster masters rule the world. The article is revealing, but it fails to connect the corporatist to the Banks that are sending in billions of dollars. The connection instead is made to the democratic governments intent on pushing the world into world war 3. Nor is there much mention of the oil and natural gas pipeline and supply geographics that dominate battlefields from the Ukraine, to Syria, Iraq and Lybia. The New World Order needs a third World War if it's to truly overturn the fragile post World War II economic order loosely based on free market capitalism, individual liberty and democratic governance. The end of national sovereignty, religious and cultural identities has one more hurdle. And there is no doubt in my mind that the elites are ready to jump that hurdle. World War III has spread from the middle east to middle Europe. Best we all hold on. .................. "Exclusive: Ukraine's post-coup regime is facing what looks like a falling-out among thieves as oligarch-warlord Igor Kolomoisky, who was given his own province to rule, brought his armed men to Kiev to fight for control of the state-owned energy company, further complicating the State Department's propaganda efforts, reports Robert Parry. In the never-never land of how the mainstream U.S. press covers the Ukraine crisis, the appointment last year of thuggish oligarch Igor Kolomoisky to govern one of the country's eastern provinces was pitched as a democratic "reform" because he was supposedly too rich to bribe, without noting that his wealth had come from plundering the country's economy. In other words, the new U.S.-b
Paul Merrell

Military Operations in Preparation in and Around Syria. Calm Before the Storm? | Global Research - Centre for Research on Globalization - 0 views

  • The Western Press doesn’t have much to say about the military operations in Syria, except to affirm, without the slightest proof, that the Coalition is successfully bombing Daesh jihadists while the Russians continue to kill innocent civilians. It is in fact difficult to form a reasonable idea of the current situation, particularly since each side is readying its weapons in preparation for a wider conflict. Thierry Meyssan describes what is going on. The silence surrounding the military operations in Iraq and Syria does not mean that the war has ground to a halt, but that the different protagonists are preparing for a new round of hostilities.
  • The Coalition forces On the imperial side, there reigns a state of total confusion. With regard to the contradictory declarations by US leaders, it is impossible to understand Washington’s objectives, if indeed there are any. At the very best, it would seem that the United States are allowing France to take certain initiatives at the head of one part of the Coalition, but even there, we do not know their real objectives. Of course, France declares that it wants to destroy Daesh in retaliation for the attacks of the 13th November in Paris, but it was already saying so before these attacks took place. Their earlier declarations were the stuff of public relations, not reality. For example, the Mecid Aslanov, property of Necmettin Bilal Erdoğan’s BMZ Group, left the French port of Fos-sur-Mer on the 9th November 2015, having just delivered, in total impunity, a cargo of oil which it claimed had been extracted in Israël, but which in reality had been stolen by Daesh in Syria. There is nothing to indicate that the situation is any different today, or that we should begin taking the official declarations seriously. French President François Hollande and his Minister of Defence Jean-Yves Le Drian visited the aircraft-carrier Charles-De-Gaulle, off the coast of Syria, on the 4th December. They announced a change of mission, but gave no explanation. As Army Chief of Staff General Pierre de Villiers had previously stated, the ship was diverted to the Persian Gulf.
  • The aeronaval Group constituted around the Charles-De-Gaulle is composed of its on-board aerial Group (eighteenRafale Marine, eight modernised Super Etendard, two Hawkeye, two Dauphin and one Alouette III), the aerial defence frigateChevalier Paul, the anti-submarine frigate La Motte-Picquet, the command flagship Marne, the Belgian frigate Léopold Ier and the German frigate Augsburg, and also, although the Minister of Defence denies it, a nuclear attack submarine. Attached to this group, the stealth light frigate Courbet remained in the western Mediterranean. The European forces have been integrated into Task Force 50 of the USNavCent, in other words the US Central Command fleet. This unit now comprises about sixty ships. The French authorities have announced that rear-admiral René-Jean Crignola has taken command of this international force, without mentioning that he is placed under the authority of the commander of the 5th Fleet, rear-admiral Kevin Donegan, who is himself under the authority of General Lloyd J. Austin III, commander of CentCom. It is in truth an absolute rule of the Empire that the command of operations always falls to US officers, and that the Allies only occupy auxiliary positions. In fact, apart from the relative promotion of the French rear-admiral, we find ourselves in the same position as last February. We have an international Coalition which is supposed to be fighting Daesh, and which – for an entire year – has certainly multiplied its reconnaissance flights and destroyed Chinese oil installations, but without having the slightest effect on its official objective, Daesh. Here too, there is no indication that anything will change.
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  • Turkey and the ex-governor of Mosul, Atheel al-Nujaifi, would like to be present when the city is taken from Daesh, hoping to be able to prevent it from being occupied by the Popular Mobilisation Forces (al-Hashd al-Shaabi), the great majority of whom are Shia. It’s clear that everyone is dreaming – illegitimate President Massoud Barzani believes that no-one will question his annexation of the oil fields of Kirkuk and the Sinjar mountains – the leader of the Syrian Kurds, Saleh Muslim, imagines that he will soon be President of an internationally-recognised pseudo-Kurdistan – and President Recep Tayyip Erdoğan presumes that the Arabs of Mosul long to be liberated and governed by the Turks, as they were under the Ottoman Empire. Furthermore, in Ukraine, Turkey has deployed the International Islamist Brigade that it officially created last August. These jihadists, who were extracted from the Syrian theatre, were divided into two groups as soon as they arrived in Kherson. Most of them went to fight in Donbass with the Cheikh Manour and Djokhar Doudaïev Brigades, while the best elements were infiltrated into Russia in order to sabotage the Crimean economy, where they managed to cut all electricity to the Republic for 48 hours.
  • The terrorist forces We could deal here with the terrorist organisations, but that would involve pretending, like NATO, that these groups are independent formations which have suddenly materialised from the void, with all their salaries, armement and spare parts. More seriously, the jihadists are in fact mercenaries in the service of Turkey, Saudi Arabia and Qatar – it seems that the United Arab Emirates have almost completely withdrawn from this group – to which we must add certain multinationals like Academi, KKR and Exxon-Mobil. Turkey continues its military deployement in Bachiqa (Irak), in support of the Kurdish forces of illegitimate President Massoud Barzani who, although his mandate is terminated, refuses to leave power and organise new elections. When the Iraqi government demanded that Turkey remove its troops and tanks, Ankara responded that it had sent its soldiers to protect the training forces deployed in Iraq according to an earlier international agreement, and that it had no intention of withdrawing them. It then added even more, bringing the number of troops involved to at least 1,000 soldiers and 25 tanks. Iraq referred its case to the United Nations Security Council and the Arab League, without provoking the slightest reaction anywhere.
  • The Coalition has announced that it has carried out new bombing missions and destroyed a number of Daesh installations, but these allegations are unverifiable and even more doubtful insofar as the terrorist organisation has not made the slightest protest. From this disposition, we may conclude that France may elaborate its own strategy, but that the United States can re-assert control at any time.
  • Saudi Arabia united its mercenaries in Riyadh in order to constitute a delegation in readiness for the next round of negotiations organised by the NATO Director of Political Affairs, US neo-Conservative Jeffrey Feltman. The Saudis did not invite the representatives of Al-Qaïda, nor those of Daesh, but only the Wahhabist groups who are working with them, like Jaysh al-Islam or Ahrar al-Sham. Therefore, in theory, there were no « terrorist groups », as listed by the UNO Security Council, present at the conference. However, in practice, all the participants were fighting with, in the name of, or alongside Al-Qaïda or Daesh without using their label, since most of these groups are directed by personalities who once belonged to Al-Qaïda or Daesh. Thus, Ahrar al-Sham was created just before the beginning of the events in Syria by the Muslim Brotherhood and the principal leaders of Al-Qaïda, drawn from personalities close to Osama bin Laden. Continuing to act as they had before the Russisan intervention, the participants agreed to a « political solution » which would start with the abdication of the democratically-elected President Bachar el-Assad, and continue with a sharing of power between themselves and the Republican institutions. Thus, although they have lost all hope of a military victory, they persist in counting on the surrender of the Syrian Arab Republic.
  • Since the representative of the Syrian Kurds was not invited to the conference, we may conclude that Saudi Arabia considers the project for a pseudo-Kurdistan as distinct from the future of the rest of Syria. Let us note in passing that the YPG has just created a Syrian Democratic Council in order to reinforce the illusion of an alliance between Selah Muslim’s Kurds and the Sunni and Christian Arabs, when in reality, they are fighting each other on the ground. In any case, there is no doubt that Riyadh is supporting Turkey’s efforts to create this pseudo-Kurdistan as a place of banishment for « its » Kurds. Indeed, it is now confirmed that Saudi Arabia supplied the logistical aid necessary for Turkey to guide the air-air missile which shot down the Russian Soukhoï 24. Finally, Qatar is still pretending that it has not been involved in the war since the abdication of Emir Hamad, two years ago. Nonetheless, proof is accumulating of its secret operations, all of which are directed not against Damascus, but against Moscow – thus, the Qatari Minister of Defence, in Ukraine at the end of September, bought a number of sophisticated Pechora-2D anti-air weapons which the jihadists could use to threaten Russian forces. More recently, he organised a false-flag operation against Russia. Still in Ukraine, at the end of October, he bought 2,000 OFAB 250-270 Russian fragmentation bombs and dispersed them on the 6th December over a camp of the Syrian Arab Army, in order to accuse the Russian Army of blundering. In this case too, despite the proof, there was no reaction from the UNO.
  • The patriotic forces The Russian forces have been bombing the jihadists since the 30th September. They plan to continue at least until the 6th January. Their action is aimed principally at destroying the bunkers built by these armed groups and the totality of their logistical networks. During this phase, there will be little evolution on the ground other than a withdrawal of jihadists towards Iraq and Turkey. The Syrian Arab Army and its allies are preparing a vast operation for the beginning of 2016. The objective is to provoke an uprising of the populations dominated by the jihadists, and to take almost all the cities in the country simultaneously – with the possible exception of Palmyra – so that the foreign mercenaries will fall back to the desert. Unlike Iraq, where 120,00 Sunnis and Ba’athists joined Daesh only to exact revenge for having been excluded from power by the United States in favour of the Chiites, rare are the Syrians who ever acclaimed the « Caliphate ». On the 21st and 22nd November, in the Mediterranean, the Russian army took part in excercises with its Syrian ally. As a result, the airports of Beirut (Lebanon) and Larnaca (Cyprus) were partially closed. On the 23rd and 24th November, the firing of Russian missiles on Daesh positions within Syria provoked the closing of the airports at Erbil and Sulaymaniyah (Iraq). It seems that in reality, the Russian army may have been testing the possible extension of its weapon that inhibits NATO communications and commands. In any case, on the 8th December, the submarine Rostov-on-Don fired on Daesh installations from the Mediterranean.
  • Russia, which disposes of the air base at Hmeymim (near Lattakia), also uses the air base of the Syrian Arab Army in Damascus, and is said to be building a new base at al-Shayrat (near Homs). Besides this, some high-ranking Russian officers have been carrying out scouting missions with a view to creating a fourth base in the North-East of Syria, in other words, close to both Turkey and Iraq. Finally, an Iranian submarine has arrived off the coast of Tartus. Hezbollah, who demonstrated their capacity to carry out commando operations during their liberation of the Sukhoï pilot held prisoner by militias organised by the Turkish army, are preparing the uprising of Shia populations, while the Syrian Arab Army – which is more than 70% Sunni – is concentrating on the Sunni populations. The Syrian government has concluded an agreement with the jihadists of Homs, who have finally accepted to either join up or leave. The area has been evacuated under the control of the United Nations, so that today, Damascus, Homs, Hama, Lattakia and Der ez-Zor are completely secure. Aleppo, Idlib and Al-Raqqah still need to be liberated. Contrary to peremptory affirmations by the western Press, Russia has no intention of leaving the north of the country to France, Israël and the United Kingdom so that they can create their pseudo-Kurdistan. The patriot plan forsees the liberation of all the inhabited areas of the country, including Rakka, which is the current « capital of the Caliphate ». This is the calm before the storm.
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