Monday, April 21, 2014

Express threats

The ballyhooed supposedly upcoming American economic 'recovery' is based on hot air on fracking, which requires high oil prices.  Putin expressly threatens this plan with his new friends, the Saudis:  "*Very* interesting reply of Putin during yesterday's Q&A".  The Russians are not without serious weapons to damage the Americans where it hurts.  Note that Putin is clear that the price can be manipulated in such a way that will not seriously hurt Russia, while having serious implications for the Americans.

"Ilargi: Ukraine – Part of United States’ Desperate Solutions For Not Sinking Alone?"  As all intelligent people know, the attack on Ukraine was an attack on Russia and Putin, and was solely neocon, i.e., Jewish supremacist, in motive and execution.  This analysis is completely backasswards - why would American desperation lead it to take steps which will accelerate the speed and degree of its decline?

"Harper on Russia: America's useful idiot?" by Murray Dobbin:
". . . the demonization of Putin and Russia is having a major influence on an issue that has barely been mentioned in the media: Putin's plan to create the petro-ruble and decouple Russia's energy exports from the dollar.

It is arguable that this global issue is many times more important to the U.S. than anything that happens in the Ukraine but American efforts to isolate Russia is actually accelerating the process. It is also driving Russia to look to the East instead of Europe for its future prosperity -- aligning with China as both a market for its gas and a partner in undermining the petro-dollar. China is already headed there -- its yuan is the second most used currency, ahead of the euro, in international trade settlements. It recently "...opened two centers to process yuan-denominated trade flows, one in London and one in Frankfurt."

The emerging national economies of Brazil, Russia, India, China and South Africa are grouped under the acronym BRICS. According to journalist Peter Koenig:

    "Other countries, especially the BRICS and BRICS-associates (BRICSA) may soon follow suit and join forces with Russia, abandoning the 'petro-dollar' as trading unit for oil and gas. This could amount to tens of trillions in loss for demand of petro-dollars per year ... leaving an important dent in the U.S. economy would be an understatement. ... Along with the new BRICS(A) currency will come a new international payment settlement system, replacing the SWIFT and IBAN exchanges, thereby breaking the hegemony of ... the Bank for International Settlement (BIS) in Basle..."

The prospect of the U.S. dollar losing its status as the world's trading currency is far and away the greatest threat to U.S. hegemony in the world as it would turn the country's $17-trillion (not counting unfunded liabilities) virtual debt problem into a real one. Until now, the huge external demand for U.S. dollars has allowed it to accumulate enormous debts without defaulting. With Russia, China and the rest of the BRICSA countries (Brazil, India, and South Africa) moving in this direction the U.S. is panic-stricken. It used to be said that the U.S. dollar was backed by the Pentagon. Indeed, plans to decouple from the dollar was a common feature of three countries which experienced the wrath of U.S. foreign policy and military intervention. Libya's Muammar Gaddafi was planning a gold-standard currency for all of Africa; Iraq was planning to quit using the dollar for its oil exports, as was Iran. Sanctions against the latter had as much to do with this plan as any other issue.

But Russia, China, Brazil and India are countries of a whole different order and out of reach of the Pentagon's threats. There is virtually nothing the U.S. can do to stop this movement, provoked in part by the massive printing of money in repeated "quantitative easings" and accelerated by NATO's adventurism.

If that were not a big enough headache for the U.S., Russia is well placed to detach Germany from the EU and U.S. efforts to isolate it. While Russia will suffer economically in the short term from sanctions, the longer term looks brighter. At the same time that BRICSA is planning its new international payment system, China and Germany are negotiating another initiative that guarantees Russia a prominent role in one of the world's most ambitious economic development schemes: the New Silk Road linking China and Europe. This initiative is intended to provide enormous impetus for development of western China and everything from there to Germany.

Says Koenig:

    "Germany, the economic driver of Europe -- the world's fourth largest economy (US$ 3.6 trillion GDP) -- on the western end of the new trading axis, will be like a giant magnet, attracting other European trading partners of Germany's to the New Silk Road. What looks like a future gain for Russia and China, also bringing about security and stability, would be a lethal loss for Washington."

So the Russian president, at record highs in public approval and now fully justified in facing East after being provoked by the West, doesn't have to act: everything is in motion for advantage Russia. And our war-mongering prime minister will continue to aid Mr. Putin by demonizing him and justifying his eastern "pivot.""

Moon of Alabama is down, probably because some people did not want you to see the story of the Pravyi Sektor paramilitaries attacking innocent people:  "Ukraine: The Bloody Eastern Escalation" (cache).  Presstitute massaging of the same incident:  "Truth a victim of deadly Ukraine checkpoint attack".  You almost feel like taking a bath after reading the slimy Toronto Star insinuations.
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