Showing posts with label political brinkmanship. Show all posts
Showing posts with label political brinkmanship. Show all posts

Thursday, November 13, 2014

Geopolitical risk theater links: Russian Bomber Flights near US shores, NATO: Russian troops cross Ukraine Border, US $ Costs of ISIS war and more…

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An update on geopolitical developments:

1 Brinkmanship geopolitics continues as Russia plans long-range bomber flights near U.S. shores CNN.com November 13, 2014
Russia plans to send long-range bombers to patrol the Gulf of Mexico and the Caribbean, the nation's defense minister said, amid escalating tensions with the West over Ukraine.

The patrols, which would also include the western Atlantic and eastern Pacific, would bring the flights close to the United States' territorial waters.

The move is in response to a growing international resentment against Russia, defense minister Sergei Shoigu said Wednesday.
Just ONE mis-encounter is all it takes for an escalation...nuclear exchange?

2 As the US and China firmed up some deals, Chinese hack U.S. weather systems, satellite network November 12, 2014. Will the deal end the mutual hacking?

3 Putin’s mighty escorts: Russian Warships Head to Australia Ahead of G20 Summit Newsweek.com November 12, 2014

4 NATO itching for a fight? : Ukraine crisis: Russian troops crossed border, Nato says BBC.com November 12, 2014

5 More financial and economic burden for US taxpayers for a war that has little or nothing to do with US interests. Nonetheless US politicians, and bureaucracy military industrial complex cheers on more the prospects of monetary largesse, again charged to the taxpayers: $300,000 an Hour: The Cost of Fighting ISIS The Atlantic November 12, 2014

An excerpt
It's been 96 days since the United States launched its first airstrikes against ISIS militants in Iraq; 50 since it expanded that campaign into Syria. And on each one of those days, the U.S. government has spent an average of roughly $8 million, or more than $300,000 an hour, on the operation against the Sunni Muslim extremist group, according to Pentagon officials.

That's a trivial sum compared with the more than $200 million the U.S. pours each day into its 13-year war in Afghanistan (the National Priorities Project, which advocates for budget transparency, estimates that the U.S. has now spent more than $1.5 trillion on its wars in Iraq and Afghanistan, and against ISIS, since 2001). But the bean-counting matters, because the place values and line items offer clues to understanding the military offensive President Obama has committed the country to—and now asked Congress to bless.

6 Will people learn from the history of wars? :Graph of world wars by number of dead and duration of conflict shows how war is very much not behind us Independent.co.uk November 11, 2014

I don’t think so.

7 US has spent so much for warfare, yet a recent encounter with Russian aircraft may have exposed some of  their vulnerabilities: What frightened the USS Donald Cook so much in the Black Sea? Voltairenet.org November 8, 2014
The US destroyer is equipped with the most recent Aegis Combat System. It is an integrated naval weapons systems which can link together the missile defense systems of all vessels embedded within the same network, so as to ensure the detection, tracking and destruction of hundreds of targets at the same time. In addition, the USS Donald Cook is equipped with 4 large radars, whose power is comparable to that of several stations. For protection, it carries more than fifty anti-aircraft missiles of various types.

Meanwhile, the Russian Su-24 that buzzed the USS Donald Cook carried neither bombs nor missiles but only a basket mounted under the fuselage, which, according to the Russian newspaper Rossiyskaya Gazeta , contained a Russian electronic warfare device called Khibiny.

As the Russian jet approached the US vessel, the electronic device disabled all radars, control circuits, systems, information transmission, etc. on board the US destroyer. In other words, the all-powerful Aegis system, now hooked up - or about to be - with the defense systems installed on NATO’s most modern ships was shut down, as turning off the TV set with the remote control.

The Russian Su-24 then simulated a missile attack against the USS Donald Cook, which was left literally deaf and blind. As if carrying out a training exercise, the Russian aircraft - unarmed - repeated the same maneuver 12 times before flying away
Hmmm

Saturday, November 08, 2014

Geopolitical Risk Theater Links: More US Boots on the Ground, NeoCons versus Putin, Saudi Aramco Oil Fire, Proposed Russian Ban on US Dollar

1 Can’t get enough of Iraq.  Air warfare hasn’t worked, so the POTUS orders more boots on the ground: U.S. to Send 1,500 More Troops to Iraq New York Times November 8, 2014

2 There are no permanent friends only permanent interests: Obama sent 'secret letter' to Iran Daily Star November 8, 2014 (an expose by Israel to forestall sleeping with the enemy?)

3 The  POTUS panders to the opposition, the war lusting neoconservatives: Obama Call to Authorize Islamic State War Tests Congress Bloomberg/Businessweek.com November 6, 2014

4  War is a racket. Throw money at every problem charged to taxpayers for the benefit of the military industrial complex: Problems of U.S. nuclear forces must be addressed Washington Times November 5, 2014

Here is a quote:
U.S. strategic nuclear forces, both weapons and personnel, are experiencing serious problems that must be addressed urgently.

That is a central conclusion of a new study called the “Nuclear Enterprise Review” that the Pentagon is expected to release next week, according to defense officials familiar with the study.

Fixing nuclear forces’ problems will require the investment of billions of defense dollars in modernizing systems and greater leadership attention to training and readiness for the thousands of military personnel who operate and maintain the world’s most powerful arsenal.
5 Neocons are back on the seat of power. One of their likely goal will be to challenge Russia's Putin: Michael Rozeff: McCain versus Putin November 6, 2014
A confrontation is at hand between McCain and Putin. McCain will be the new chairman of the Senate Armed Services Committee. He wants to arm Ukraine. He’s anti-Putin and anti-Russia. Obama is in the middle, trying not to go as far as McCain while still coming out with his own anti-Putin and anti-Russia policies such as sanctions. Putin regards those as blackmail.
6  The easiest thing to do has been to spend or waste other people’s money: US Army Slow to Investigate Losses of Key Encryption Gear in Afghanistan; $420 Million in Gear Unaccounted For Anti-War.com November 5, 2014
An internal report by the Pentagon’s Inspector General found the US Army “lost” some $420 million worth of equipment in Afghanistan, including weapons, sensitive encryption devices, and even some vehicles. 

To make matters worse, the IG found that the Army brigade responsible for managing the gear failed to report the losses in a timely fashion, meaning there were no great efforts to recover it
7 Simmering Iraq battlefront: The Battle for Baiji Heating Up; 345 Killed, 48 Wounded Across Iraq Anti-war.com November 6, 2014

8 Developing brinkmanship across multi-fronts: Finland warns Europe is 'at the gates of a new cold war' in wake of Russian military activity Independent.co.uk November 5, 2014

9 Chinese government’s thrust towards modern warfare: This Video Of A Chinese 5th-Generation Fighter Prototype Shows The Plane Could Have One Huge Weakness Business Insider November 6, 2014

10 Developing geopolitical factional rivalry; the NATO versus SCO: Martin Katusa Putin Signs Secret Pact to Crush NATO Casey Research November 6, 2014 (bold mine)
But you can bet your last ruble that Vladimir Putin knows exactly where Tajikistan is. Because the group that met there is the Russian president’s baby. It’s the Shanghai Cooperation Organization (SCO), consisting of six member states: Russia, China, Kazakhstan, Kyrgyzstan, Tajikistan, and Uzbekistan.

The SCO was founded in 2001, ostensibly to collectively oppose extremism and enhance border security.But its real reason for being is larger. Putin sees it in a broad context, as a counterweight to NATO (a position that the SCO doesn’t deny, by the way). Its official stance may be to pledge nonalignment, nonconfrontation, and noninterference in other countries’ affairs, but—pointedly—the members do conduct joint military exercises…

As always, Putin is not thinking small or short term here. Among the priorities he’s laid out for the Russian chairmanship are: beefing up the role of the SCO in providing regional security; launching major multilateral economic projects; enhancing cultural and humanitarian ties between member nations; and designing comprehensive approaches to current global problems. He is also preparing an SCO development strategy for the 2015-2025 period and believes it will be ready by the time of the next summit.

We should care what’s going on inside the SCO. Once India and Pakistan get in (and they will) and Iran follows shortly thereafter, it’ll be a geopolitical game changer.
11 The right hand doesn’t know what the left hand (see number 2 Obama sends letter to Iran--under the table deal?) has been doing: Pentagon: Iran Giving ‘Lethal Aid to the Taliban’ to Fight U.S. Freebeacon November 6, 2014

12 On Oil politics, I recently wrote (bold mine): 
Saudi Arabia has lately stated that they will protect their oil market share. What if those affected oil welfare deficit governments resist? What if Russia or any of Saudi’s chief adversaries, say Iran, for instance finance rogue groups within Saudi to sabotage the latter’s pipelines?
The source said that the fire was "not the work of terrorists".
Not the work of terrorist? Perhaps. But the Saudi government goes on an abrupt manhunt for terrorists where 26 suspected militants has been arrested “following security raids across the kingdom” aawsanet.com November 7, 2014 

Some coincidence eh? Hmmm.

13 American linguist and philosopher warns on the risk of US imperialism: Chomsky to RT: US and its NATO intervention force may spark nuclear war November 7, 2014 (italics original)
How dangerous is the current confrontation between Russia and the West? Noam Chomsky believes that NATO expansion and US quest for hegemony has put the world in a situation so unstable where any accidental interaction could result in a nuclear war.

The “new NATO” that emerged after the Soviet Union collapsed is basically a US-run intervention force, with a completely different mission as compared to the original, Chomsky tells RT’s Sophie&Co.

“In fact, one might ask why NATO even continued to exist,” he said. “The official justification for NATO was that its purpose was to defend Western Europe from Russian hordes who might attack Western Europe.”

With no more “Russian threat”, the natural conclusion in the 90s would be to disband the alliance, but instead the opposite happened – against all agreements NATO expanded all the way towards the Russian borders.

“Its mission changed. The official mission of NATO became to control the international, the global energy system, pipelines. That means, to control the world.”
14 Looking for a catalyst for World War III? Russia may ban circulation of US dollar APA.com November 5, 2014
If the bill is approved, Russian citizens will have to close their dollar accounts in Russian banks within a year and exchange their dollars in cash to Russian ruble or other countries’ currencies.

Otherwise their accounts will be frozen and cash dollars levied by police, customs, tax, border, and migration services confiscated.
Have a nice day.

Wednesday, November 05, 2014

Geopolitical Risk Theater Links—Ukraine Elections, Nato’s Claim: Russian Troop Build Up, Unraveling US Strategy versus ISIS? and more…

Updates on the geopolitical risk theater


US double standard on Ukraine...2 Daniel McAdams In Ukraine, A Tale of Two Elections Ron Paul Institute November 1, 2014
The US government loves to “promote democracy” overseas, often at the barrel of a gun. Strangely enough, however, it often “deplores” actual elections being held in such places. Take Ukraine, for example. An election held last week by a group that forcibly seized power from a legitimately-elected government was hailed by the US administration as a great democratic achievement…

However in eastern Ukraine, which refused to recognize February’s US-backed coup in the western part of the country, parliamentary and presidential elections scheduled for tomorrow are scorned and even “deplored” by the US administration.
Russia has moved troops closer to the border with Ukraine and continues to support rebels in the country's east, NATO's chief said on Tuesday, after an election held by the pro-Russian separatists and condemned by Kiev and Western leaders.

Ukraine's president said Sunday's vote flouted terms of a plan to end a war that has killed more than 4,000 people, and that newly formed army units would be sent to defend a string of eastern cities against a possible new rebel offensive.
4 Russia snubs nuclear security meeting Guardian.com November 4, 2014


6 The Secret Life of an ISIS Warlord Daily Beast October 27, 2014
Abu Omar al-Shishani has a fierce, gorgeous Chechen bride. He learned intelligence operations from the U.S. And his older brother may be the real genius of ISIS.
7. Iraq Confirms ISIS Massacre of Sunni Tribe Time.com November 4, 2014


Despite superior airpower… 9. Pentagon denies US strategy to defeat Isis is unravelling Guardian.com November 4, 2014
The Pentagon has denied that the US strategy against Islamic State (Isis) is in disarray after a series of setbacks as the war known as Operation Inherent Resolve stretches into its fourth month.


China has developed and successfully tested a highly accurate laser defense system against light drones. The homemade machine boasts a two-kilometer range and can down "various small aircraft" within five seconds of locating its target.

Boasting high speed, great precision and low noise, the system is aimed at destroying unmanned, small-scale drones flying under an altitude of 500 meters and at speeds below 50 meters per second, the official Xinhua news agency reported, citing a statement by one of the developers, the China Academy of Engineering Physics (CAEP).

Was it just a practice for future missions or perhaps the Russians are intending to route Tu-95MS Bear Hs into the Mediterranean?

If so, maybe we are going to see some shots of the Russian bombers as those taken by the Italian air force pilots during their Cold War intercepts.
15 Iran: U.S. Is Still ‘Number One Enemy Freebeacon.com November 2, 2014
The United States remains “the great Satan” and Iran’s “number one enemy,” Iranian military and defense officials said over the weekend in statements that also called for “the prosecution, trial, and punishment of the White House.”

The inflammatory comments, released over the weekend by Iran’s Defense Ministry and the Revolutionary Guard Corps (IRGC), come as nuclear negotiations between the United States and Iran reach a critical juncture.

Tuesday, October 28, 2014

Geopolitical Risk Theater Watch: Article Links October 28

From now on, I will be occasionally posting links on articles covering geopolitical risk theater. This should give us an idea of the evolving risks developments. I'll start with 12 articles



A quote:
During the 2012 ASEAN summit in Phnom Penh, four member nations – Malaysia, Vietnam, the Philippines, and Brunei – all declared there were conflicting territorial claims with China in the South China Sea. This did not include ongoing disputes with Taiwan, whose claims are generally excluded from ASEAN dialogue. Yet, the ASEAN states were unable to agree on an appropriate response. Internal squabbling reached new heights when, for the first time in the group’s 45-year history, they were not even able to agree on a language for the summit’s concluding communiqué.

Aside from creating antagonism internally, ASEAN’s response – or lack thereof – clearly signaled to China the alliance’s key shortcoming: the incompatibility of individual interests with regional loyalty. Indeed, in addition to diluting US influence, China’s insistence on bilateral resolution of the South China Sea disputes deliberately takes advantage of this vulnerability.

An excerpt
On China’s strategic nuclear buildup, the report identifies China’s large-scale buildup of both conventional and nuclear-armed missiles as a serious threat.

China’s has as many as 1,895 ballistic and cruise missiles, including up to 1,200 short-range missiles, up to 100 medium-range missiles, up to 20 intermediate-range missiles, up to 75 intercontinental missiles, and up to 500 ground-launched land attack cruise missiles.

The Pentagon after 2010 halted releasing annual assessments of Chinese missile forces that one expert said undercuts the Obama administration’s policy of seeking a more open Chinese military by “indirectly assisting Chinese secrecy.”

For short-range missiles, China currently is developing five new systems with ranges between 94 and 174 miles. The new missiles will have greater accuracy and lethality.

For targeting US forces in Japan and South Korea, China has deployed DF-21C theater-range missiles with ranges of about 1,240 miles and appears to have developed a second system, the DF-16.

Its new intermediate-range missile, to be deployed in the next five years, will be able to hit US forces on Guam, Northern Australia, Alaska, and US forces in the Middle East and Indian Ocean.

A variant of the DF-21D is a unique anti-ship ballistic missile that has been deployed in two brigades in southeastern and northeast China.

China’s nuclear strike forces remain couched in secrecy, the report said. “China’s official statements about its nuclear forces and nuclear capabilities are rare and vague in order to maintain ‘strategic ambiguity,’” the report says.

Fighters scrambled to intercept a Russian spy plane in Estonia’s airspace and escort it back to Russia in what’s being considered the most serious violation of NATO airspace since the Cold War…

For the year 2014, the deployment of NATO fighters for interceptions like this one are up by around 300 percent from 2013. It’s not clear if there will be any lasting consequence for the Russian spy plane, except one: Baltic states will continue to be worried.


Russian jets flying perilously close to Japan airspace forced Japanese fighters to take to the skies 533 times over the past six months — a number up from 308 in the same time period a year earlier. Now Japan is trying to figure out why the Russian military jets have made Japan a target

The P-8s’ operations can bring them into confrontation with Chinese forces. In August, the Pentagon said a Chinese jet fighter had flown dangerously close to a U.S. P-8 during an interception near Hainan island, site of one of China’s submarine bases. China’s defense ministry publicly said its pilot flew safely and demanded that the U.S. cease surveillance operations near its base.

The message was clear: China had fulfilled its four-decade quest to join the elite club of countries with nuclear subs that can ply the high seas. The defense ministry summoned attachés again to disclose another Chinese deployment to the Indian Ocean in September—this time a diesel-powered sub, which stopped off in Sri Lanka…

China’s nuclear attack subs, in particular, are integral to what Washington sees as an emerging strategy to prevent the U.S. from intervening in a conflict over Taiwan, or with Japan and the Philippines—both U.S. allies locked in territorial disputes with Beijing…

China's nuclear-sub deployments, some naval experts say, may become the opening gambits of an undersea contest in Asia that echoes the cat-and-mouse game between U.S. and Soviet subs during the Cold War—a history popularized by Tom Clancy's 1984 novel "The Hunt for Red October."

Chinese officials say their subs don’t threaten other countries and are part of a program to protect China’s territory and expanding global interests. Chinese defense officials told foreign attachés that the subs entering the Indian Ocean would assist antipiracy patrols off Somalia, say people briefed on the meetings.
12 Paul Craig Roberts: Vladimir Putin Is The Leader Of the Moral World lewrockwell.com October 27, 2014

Excerpts from Mr. Putin's speech:

On Western Foreign policies:
A unilateral diktat and imposing one’s own models produces the opposite result. Instead of settling conflicts it leads to their escalation, instead of sovereign and stable states we see the growing spread of chaos, and instead of democracy there is support for a very dubious public ranging from open neo-fascists to Islamic radicals…
On brinkmanship politics:
Joint economic projects and mutual investment objectively bring countries closer together and help to smooth out current problems in relations between states. But today, the global business community faces unprecedented pressure from Western governments. What business, economic expediency and pragmatism can we speak of when we hear slogans such as “the homeland is in danger”, “the free world is under threat”, and “democracy is in jeopardy”? And so everyone needs to mobilise. That is what a real mobilisation policy looks like.

Sanctions are already undermining the foundations of world trade, the WTO rules and the principle of inviolability of private property. They are dealing a blow to liberal model of globalisation based on markets, freedom and competition, which, let me note, is a model that has primarily benefited precisely the Western countries. And now they risk losing trust as the leaders of globalisation. We have to ask ourselves, why was this necessary? After all, the United States’ prosperity rests in large part on the trust of investors and foreign holders of dollars and US securities. This trust is clearly being undermined and signs of disappointment in the fruits of globalisation are visible now in many countries.   The well-known Cyprus precedent and the politically motivated sanctions have only strengthened the trend towards seeking to bolster economic and financial sovereignty and countries’ or their regional groups’ desire to find ways of protecting themselves from the risks of outside pressure. We already see that more and more countries are looking for ways to become less dependent on the dollar and are setting up alternative financial and payments systems and reserve currencies. I think that our American friends are quite simply cutting the branch they are sitting on. You cannot mix politics and the economy, but this is what is happening now. I have always thought and still think today that politically motivated sanctions were a mistake that will harm everyone, but I am sure that we will come back to this subject later.

We know how these decisions were taken and who was applying the pressure. But let me stress that Russia is not going to get all worked up, get offended or come begging at anyone’s door. Russia is a self-sufficient country. We will work within the foreign economic environment that has taken shape, develop domestic production and technology and act more decisively to carry out transformation. Pressure from outside, as has been the case on past occasions, will only consolidate our society, keep us alert and make us concentrate on our main development goals.

Of course the sanctions are a hindrance. They are trying to hurt us through these sanctions, block our development and push us into political, economic and cultural isolation, force us into backwardness in other words. But let me say yet again that the world is a very different place today. We have no intention of shutting ourselves off from anyone and choosing some kind of closed development road, trying to live in autarky. We are always open to dialogue, including on normalising our economic and political relations. We are counting here on the pragmatic approach and position of business communities in the leading countries…
On the growing risks of nuclear war:
From here emanates the next real threat of destroying the current system of arms control agreements. And this dangerous process was launched by the United States of America when it unilaterally withdrew from the Anti-Ballistic Missile Treaty in 2002, and then set about and continues today to actively pursue the creation of its global missile defence system.

Colleagues, friends, I want to point out that we did not start this. Once again, we are sliding into the times when, instead of the balance of interests and mutual guarantees, it is fear and the balance of mutual destruction that prevent nations from engaging in direct conflict. In absence of legal and political instruments, arms are once again becoming the focal point of the global agenda; they are used wherever and however, without any UN Security Council sanctions. And if the Security Council refuses to produce such decisions, then it is immediately declared to be an outdated and ineffective instrument.

Many states do not see any other ways of ensuring their sovereignty but to obtain their own bombs. This is extremely dangerous. We insist on continuing talks; we are not only in favour of talks, but insist on continuing talks to reduce nuclear arsenals. The less nuclear weapons we have in the world, the better. And we are ready for the most serious, concrete discussions on nuclear disarmament – but only serious discussions without any double standards.

What do I mean? Today, many types of high-precision weaponry are already close to mass-destruction weapons in terms of their capabilities, and in the event of full renunciation of nuclear weapons or radical reduction of nuclear potential, nations that are leaders in creating and producing high-precision systems will have a clear military advantage. Strategic parity will be disrupted, and this is likely to bring destabilization. The use of a so-called first global pre-emptive strike may become tempting. In short, the risks do not decrease, but intensify.
Have a nice day.

Monday, August 25, 2014

China to US: America is a disgusting thief spying over his neighbor’s fence, The Role of Inflationism

A recent dangerous aerial close encounter between a US government Navy P-8 surveillance craft and a Chinese Chinese interceptor at the Hainan Islands has prompted two countries to hurl accusations at each other. 

Sovereign Man’s Simon Black gives the Chinese interpretation of the event (bold original):
As for the rest of the article– I present it below with only one comment– it should be obvious to anyone paying attention that the US is no longer the world’s dominant superpower. It’s certainly obvious to the Chinese.

——–

Stop thief: China rejects the U.S. government calling our aircraft “dangerously close”
 
(Source: Sina News, http://mil.news.sina.com.cn/2014-08-23/1620797098.html)

Sure enough, it is the American government who stamps its foot first after a similar event.

First the famous anti-China military scholar Bill Gertz played his “danger close” speech for the Washington Free Beacon.

And then the Pentagon also followed and said that it was a “dangerous intercept”. The White House called it “deeply worrying provocation”.

Adm. John Kirby, the Defense Department spokesman, said Washington protested to the Chinese military through diplomatic channels, and called the maneuvers “unsafe and unprofessional.”

Deputy National Security Adviser Ben Rhodes said it was “obviously a deeply concerning provocation and we have communicated directly to the Chinese government our objection to this type of action.”

Such remarks are laughable. As we all know, the United States is the world’s largest hegemonic force and biggest rogue country.

Their various reconnaissance aircraft have been wandering around foreign airspace for decades and watching the military secrets of other countries like a disgusting thief spying over his neighbor’s fence.

However, when the neighbor comes back with a big stick, the thief will turn tail and run away, blaming the neighbor.

When you show people weakness, they will bully you. When you show people strength, they will respect you.

We [the newspaper] believe the Chinese Air Force and Naval aviation should maintain a high level of vigilence and morale in southeast coastal region to prevent the further US action.
Mr. Black concludes (bold original)…
 America has lost face and does not want to show the world they are sick. They have been lording over other countries for so long, and they will never let it go after they eat this loss.
The US government has sent a second carrier into the area. So more signs of escalations or potential risks of war.

It is interesting to see that of heightened geopolitical pressures amidst soaring stock markets in the backdrop of the massive central bank interventions.

As I previously wrote all these brinkmanship politics have been intertwined with monetary policies, the ramifications of which are vented into the political spectrum
Today’s interventionism has become more pronounced through central bank inflationism. And war financing has intrinsically been tied with inflationism…

War has always been used as opportunities to exploit society through financial repression)8 and suppress internal political opposition in order to advance the interests of the ruling political class whose interest are interlinked with the politically favored banking class, the welfare and the warfare class.
Political insider and analyst Dr. Pippa Malmgrem has an insightful discussion  on how inflationism by both the FED and the Chinese government has been driving a chasm in between them (source international-economy.com)

Here are some slices: (bold mine)
There will be more such problems given that China’s shadow banking system seems to have grown by the size of the entire U.S. financial system in last year alone. In the main, the fast-growing, highly leveraged financial system has been used to fund more and more building and infrastructure projects with dubious cash flow-generating ability. With all this bad news, and given China’s inability to provide sufficient food, energy, or raw materials at tolerable prices to its public, it starts to become apparent to Chinese leaders that there is a need to shift blame abroad and do whatever is necessary to protect the national interest. As Oscar Wilde said, “It is not whether you win or lose but how you place the blame.” It is worth dissecting the ways in which blame is being allocated today in China. The United States is a prime target. It is perceived to have “caused” the crisis through mismanagement of not only its own economy, but the world economy. Now it is said that the United States threatens the world by attempting to foment and export inflation…

From a Chinese point of view, it is argued that America always defaults on its debts through inflation. That’s how America paid for the American Revolution, the Civil War, and the war in Vietnam, when the currencies of each era—the consols, the continentals and greenbacks—became devalued or worthless. And, some Chinese are quick to note, such inflation is not a victimless crime…

For China, and many other emerging market governments, a default by the United States and other industrialized economies is not just an economic event. It is a national security issue. The problem is not simply that these investors are going to be paid back in pieces of paper hat are losing value… 

Inflation is occurring. It is just occurring in the weakest, poorest part of a highly integrated world economy: the emerging markets. As the Chinese saying goes, “Wars are fought with silver bullets.” The opening salvo in this new war has been fired, in their view, by the export of inflation from the United States and other industrialized economies to emerging markets. So access to food and energy at the right price has now become a national security requirement. It is not only about averting an Arab Spring..

It is all too human, and especially easy for politicians, to look for ways to divert attention from domestic pressures to externally imposed disruptions, especially when the cauldron of domestic pressure is intensifying. After all, the more China bails out domestic institutions and stimulates the domestic economy, the more they risk stoking the very inflation that would further foment social protest. China has a finer line to tread than many other places. Too much inflation and too little growth can also inflame the public. The Fed’s view, in theory, is right. China and many other emerging markets should just let their currencies appreciate to offset any inflationary impulses. But the political reality is that you cannot expect policymakers to hit the public when they are already down 
Dr Malmgren’s conclusion…
To the emerging markets, it is deeply ironic that the U.S. authorities expect China to raise interest rates and to revalue when U.S. officials deny U.S. monetary policy has any spillover effects, especially when many emerging markets experienced historic capital outflows and devaluations once U.S. monetary policy began to reverse. Similarly, the Chinese cannot be blamed for being suspicious that the United States and the West might be choosing inflation as a means of defaulting on debt, especially given that U.S. policymakers seem committed to avoiding any risk of deflation—which implies taking all the risk with inflation. And they wonder, what if the inflation rate the industrialized world needs to resolve its debt kills or severely damages emerging markets along the way? China cannot be blamed for fearing the normal consequences of inflation: higher prices. Nor can they be blamed for being paranoid. By one measure, China is being defaulted upon, encircled, and threatened on multiple levels. One cannot really be surprised that China may respond to their rising duress using whatever means necessary.
Ernest Hemingway was right when he wrote, The first panacea for a mismanaged nation is inflation of the currency; the second is war. Both bring a temporary prosperity; both bring a permanent ruin. But both are the refuge of political and economic opportunists. And this applies to both the US government and the Chinese government.

 

Saturday, August 16, 2014

Has the Ukraine gov’t strike at Russian convoys been real or merely a propaganda?

In war, truth is the first casualty—a popular quote misattributed to Greek playwright Aeschylus 

The Ukraine government declared that they hit Russian targets just a few hours back.

Ironically, the Russian government denies this.

From the Wire.com
Ukrainian forces claim to have attacked and destroyed a Russian military convoy that crossed the border into Ukraine during the evening on Friday. President Petro Poroshenko disclosed the event during a phone call with U.K. Prime Minister David Cameron, before announcing the news on his official website.

A statement from the Russian Foreign Ministry also confirmed that the strike had taken place, but they conveyed a more aggrieved tone and denied that anything was destroyed. They also deny that Russian vehicles even crossed the border into Ukraine, and say the incursion was on their side of the border. Ukrainian customs officials have gone across the border to inspect the convoy, but reports say the trucks are mostly empty.
So who’s been lying?

The Zero Hedge has more… (bold and italics original)
While today's trading session was marked by news which at first blush correlated with what may be the 2014 equivalent of the Archduke Ferdinand shooting, in retrospect the newsflow made painfully little sense. Let's recap:
  1. Yesterday afternoon, two UK reporters working for the Guardian and Telegraph, supposedly located by the border in east Ukraine, reported that they were "eyewitnesses" as a convoy of military trucks crossed the Russian border into the breakaway Donetsk republic, aka Ukraine. While there have been photos of the military trucks that have accompanied the Russian humantiarian convoy on Russian territory, there has so far been no proof, aside from said eyewitness reports, confirming Russian military vehicles entered or were in Ukraine.
  2. This morning Ukraine military’s spokesman, Andriy Lysenko, shocked the world when newswires reported that Ukraine forces had attacked an armed convoy from Russia, and "destroyed" a part of it. This was subsequently reiterated by the president of Ukraine himself who said that "the given information was trustworthy and confirmed because the majority of that machines had been eliminated by the Ukrainian artillery at night", and by the secretary-general of NATO, Anders Fogh Rasmussen, who said that the alliance had detected an “incursion” of vehicles from Russia last night, adding that “what we have seen last night is the continuation of what we have seen for some time." Alas, as in the case above, just more verbal reports, with zero actual evidence.
  3. Shortly thereafter, Russia responded when the Russian defense ministry said that there was no Russian military column that crossed into Eastern Ukraine, and that the above reports are based on "some fantasies."
This is where the breakdown of logic occurs, because for Russia to make such a formal statement it clearly implies that Russia believes there is no evidence of destruction of a Russian convoy in Ukraine territory, something which obviously would exist if indeed as Ukraine's president had claimed, the "majority of the machines had been eliminated."

If true, it also implies that either Ukraine had fabricated the entire story, and certainly the part about the destruction of the convoy and by extension that Russians had ever entered into East Ukraine. Furthermore, that would also suggest that the reports of the British reporters were also a fabrication.

Unless, of course, there is evidence, in which case the credibility of the both the Guardian and Telegraph reporters can be preserved, Ukraine can not be accused of fabricating a story to suit what some may say its own warmongering ambitions, and the onus is on Russia to explain why it lied about there being no invasion.

More to the point, the onus is on Ukraine to present some evidence, in fact any evidence, of a destroyed Russian military convoy instead of merely building upon a story conceived by the two UK media outlets, because if Ukraine indeed has no evidence, then its story falls apart and what's worse, the credibility and reputation of its government, of NATO and certainly of the UK press would be in tatters.

So what other possibility is there? Well, one that is all too unpalatable for Ukraine, namely that in its excitement to blow something up, it may have well destroyed some of its own military vehicles. A possible lead to such a turn of events comes from this Interfax report citing the leadership of the breakaway Donetsk People's Republic.
The leadership of the self-proclaimed Donetsk People's Republic has dismissed the Ukrainian government's statement on destroying a convoy of what appeared to be Russian armored vehicles in eastern Ukraine.
"We haven't received any armored vehicles from Russia. No Russian units, including Russian armored vehicles, have crossed the border. Hence, no Russian armored vehicles could have been destroyed," DPR First Deputy Prime Minister Andrei Purgin told Interfax on Friday evening.
Purgin claimed that, on the contrary, the militias destroyed about 100 Ukrainian armored vehicles.
"A lot of Ukrainian armored vehicles were destroyed today, 7 at one place, 12 at another. And the same all over the DPR territory. A total of about 100 of them," Purgin said.
The implication is clear: while 100 or so Ukraine armored vehicles may or may not have been destroyed, one wonders if indeed the Ukraine army was responsible in "aiding" the separatists with what would appear to be a friendly-fire incident?

But perhaps the most damning evidence comes from none other than the White House itself, which according to CNN just admitted that while it accuses Moscow of "incursions" it can't confirm the convoy was destroyed by Kiev. 

Friday, August 15, 2014

Breaking: Ukraine Government Attacks Russian "Armed" Convoy

In the premise that the US and her allies have their backing them, the Ukraine government draws first blood on the Russian government by striking at the latter’s "armed" humanitarian convoy headed towards Ukraine’s separatist region. This looks like moral hazard applied to the world of politics. Here is what the "humanitarian" convoy looked like, accompanied by military escorts.

From Bloomberg:
Ukraine said its troops attacked and partially destroyed a column of armed vehicles that had crossed the border from Russian territory, while Russia said it was concerned about an attack on another convoy carrying aid.

Ukrainian government troops engaged the vehicles that had arrived overnight through a rebel-held section of the border, Andriy Lysenko, a spokesman for the country’s military, told reporters in Kiev today. Ukrainian soldiers continue to come under shelling, including rounds fired from Russia, he said.

The government in Kiev has for months said that separatist rebels in its easternmost regions are receiving support from Russia, which backs them with artillery fire. Russia has repeatedly denied any involvement in the Ukrainian unrest. The Foreign Ministry in Moscow said it was concerned about potential attempts to disrupt the humanitarian convoy and repeated a call for a cease-fire to allow for aid delivery.

The incursion last night isn’t seen by Ukraine as a new development or a possible start of an invasion by Russia, Defense Ministry spokesman Leonid Matyukhin said by phone earlier. The vehicles were painted white to camouflage the operation as a peacekeeping mission, he said.
Or is it that this provocation comes under the prodding of the US government??
One thing may lead to another. We pray that cooler heads prevail.

 

Wednesday, July 30, 2014

David Stockman: The Ukrainian crisis is the outcome of the mindless 20-year drive of the Warfare State to push an obsolete NATO to the very doorstep of Russia

The public loves the visible, so they are easily swayed by media who sell political messages by focusing on the visible and the sensational. Yet it has hardly been reckoned that much of social activities have been a product of history.  This means that to ignore history is to neglect an important component of reality.

In the case of the Ukraine crisis, which risks morphing into World War III, analyst David Stockman at his Contra Corner website explains how the past and present US foreign policy warfare state-imperialism agenda has brought upon the current tensions. The key excerpts from the article (bold mine, italics original)
The Kiev government is a dysfunctional, bankrupt usurper that is deploying western taxpayer money to wage a vicious war on several million Russian-speaking citizens in the Donbas—-the traditional center of greater Russia’s coal, steel and industrial infrastructure. It is geographically part of present day Ukraine by historical happenstance. For better or worse, it was Stalin who financed its forced draft industrialization during the 1930s; populated it with Russian speakers to insure political reliability; and expelled the Nazi occupiers at immeasurable cost in blood and treasure during WWII. Indeed, the Donbas and Russia have been Saimese twins economically and politically not merely for decades, but centuries.

On the other hand, Kiev’s marauding army and militias would come to an instant halt without access to the $35 billion of promised aid from the IMF, EU and US treasury. Obama just needs to say “stop”. That’s it. The civil war would quickly end, permitting the US, Russia and the warring parties of the Ukraine to hold a peace conference and work out the details of a separation agreement.

After all, what is so sacrosanct about preserving the territorial integrity of the Ukraine? Ever since the middle ages, it has consisted of a set of meandering borders in search of a nation that never existed owing to endemic ethnic, tribal and religious differences. Its modern boundaries are merely the fruit of 20th century wars and  the expediencies of a totalitarian state during the decades of its rise, rule and disintegration.

There was until recently a neighboring “state” of equally artificial lineage called Czechoslovakia. It was carved out of the German and Austrian empires by the vengeful victors at Versailles, urged on by scheming Czech nationalists who coveted the resources of the Slovaks. But notwithstanding revolutions, the Stalinist oppression, the Cold War, the Prague Spring and all the rest of the 20th century mayhem—-the machinations at Versailles didn’t birth a state that was viable or sustainable. Accordingly, separation has been had, and the parties are better off for it—as are its neighbors and the larger world.

And on the topic of partition there is the ghost of Yugoslavia–another state that emerged in whole cloth  from the madness of Versailles. Yes, it has been partitioned now into half a dozen smaller states—-Slovenia, Macedonia, Serbia, Montenegro, Croatia, Kosovo and Bosnia. But the operative point is that the partitioner was none other than Washington and its European groupies who had no regard for those happenstance 20th century-made borders when it suited their purpose. 

So the sanctimonious yelping from Washington about the sacred territorial integrity of the Ukraine is ahistorical tommyrot. In fact, however, it is a thin fig leaf for a far more insidious purpose. Namely, the self-aggrandizement of the Warfare State machinery that was left stranded in Imperial Washington without purpose or justification when the Cold War ended two decades ago.

So the Warfare State machinery—including its spy network, state department, aid agencies and NGO supplicants— invented enemies and missions to justify their continued existence and their massive dissipation of fiscal resources. Those are upwards of $1 trillion annually if you count everything including veterans and homeland security.

Thus, after arming the mujahedeen in Afghanistan against the Soviets in the 1980s, their Taliban successors were deemed our enemy after the cold war ended—even though they never poised a scintilla of threat to the citizens of Lincoln NE or Worcester MA.  So too with our 1980′s ally Saddam Hussein, and also with Khadafy, Assad and the warring tribal potentates and cutthroats of Yemen, Somalia and Waziristan, to name just a few.

But it is in eastern Europe that the Warfare State machinery has most egregiously made an enemy and mission out of whole cloth. As the Cold War was drawing to a close in the late 1980s, then Secretary of State James Baker made a sensible deal with Gorbachev. In return for Soviet acquiesce in the reunification of Germany, the US would insure that NATO did not expand by a “single inch”. 

Since then, of course, there has been a senseless bipartisan betrayal and stampede in the opposite direction. Starting under Clinton and extending through Bush and Obama, NATO has been expanded from 16 nations at the end of the Cold War to 28 countries today. 

Yet the very recitation of its new members underscores the historical farce that this needless expansion amounted to. For better or worse, the formation of NATO in the late 1940′s involved what were perceived to be vital national security interests against a Stalinist policy that by the lights of the hawks and militarists of the day amounted to a violation of his Yalta obligations. Accordingly, NATO constituted an alliance of real nations—England, France, Italy and West Germany—-that could make a meaningful contribution to collective security against the perceived Soviet threat of the times.

But Albania, Bulgaria, Latvia, Slovakia and Slovenia?  And that is not to forget Moldova, Georgia, Macedonia and the Ukraine—all of which are still coveted for membership by the NATO apparatchiks. What could these micro-states possibly contribute to American security? That’s especially the case since the Warsaw pact had been dissolved; the Soviet Empire has erased from the pages of history; and the Russian successor was left with an Italian sized GDP encumbered with the destructive legacy of a state-dominated economy that had been appropriated by a passel of thieves, opportunists and oligarchs.

In short, today’s Ukrainian crisis is the outcome of the mindless 20-year drive of the Warfare State to push an obsolete NATO to the very doorstep of Russia, and into the messy remnants of the Soviet disintegration. Stated differently, Putin has been in power for 15 years, yet during 13 of those years there was no hue and cry from Washington, London and Brussels that he was an incipient Hitler bent on sweeping conquest. Even the so-called invasion of Georgia in 2008 was a tempest in a teapot provoked by local pro-Russian separatists who did not want to be ruled by a de facto American interloper in Tbilisi.
Pls read the entire article here

Tuesday, July 29, 2014

Malaysian Airline MH17 Crash: 16 Central Issues; Justification for World War III (?) and Iran Air Flight 655

Whodunit? 

Contra mainstream’s mechanical finger pointing propaganda on the Malaysian MH17 crash, Global Research’s Julie Lévesque raises 16 central issues on the crash that has become a geopolitical tinderbox that shouldn’t be ignored (bold original)
1. Malaysian Airlines confirmed that the pilot was instructed to fly at a lower altitude by the Kiev air traffic control tower upon its entry into Ukraine airspace. (Malaysian Airlines MH17 Was Ordered to Fly over the East Ukraine Warzone)

2. The flight path was changed. We still don’t know who ordered it, but we know it was not Eurocontrol:
MH17 was diverted from the normal South Easterly route over the sea of Azov to a path over the Donetsk. Oblast. (The Flight Path of MH17 Was Changed. July 17 Plane Route was over the Ukraine Warzone)
According to Malaysian Airlines “The usual flight route [across the sea of Azov] was earlier declared safe by the International Civil Aviation Organisation. The International Air Transportation Association has stated that the airspace the aircraft was traversing was not subject to restrictions.”
The regular flight path of MH17 (and other international flights) over a period of ten days prior to July 17th ( day of the disaster), crossing Eastern Ukraine in a Southeasterly direction is across the Sea of Azov (click on the article link below to see the map). While the audio records of the MH17 flight have been confiscated by the Kiev government, the order to change the flight path did not come from Eurocontrol. Did this order to change the flight path come from the Ukrainian authorities? Was the pilot instructed to change course? (Malaysian Airlines MH17 Was Ordered to Fly over the East Ukraine Warzone)
3.  The presence of the Ukrainian military jet was confirmed by Spanish air traffic controller “Carlos” at Kiev Borispol airport shortly after the plane was shot down, as well as eyewitnesses in Donetsk. (How American Propaganda Works: “Guilt By Insinuation”, Spanish Air Controller @ Kiev Borispol Airport: Ukraine Military Shot Down Boeing MH#17

The Spanish air traffic controller documented the event on Twitter as it happened. He claimed it was not an accident, that the Ukrainian authorities shot down MH17 and were trying to “make it look like an attack by pro-Russians” . His Twitter account was closed down shortly after the tragedy. Although his account has yet to be fully corroborated, some of his claims have been confirmed by Malaysian Airlines and the Russian authorities.

There have been some reports to the effect the Spanish Air controller is fake and that the twitter message were sent out of London. Upon further investigation, the Spanish Air Controller conducted several media interviews in the last 2-3 months, see his interview with RT (Spanish Air Controller @ Kiev Borispol Airport: Ukraine Military Shot Down Boeing MH#17)

4. Russia has made available public radar and satellite imagery as evidence. Its images suggest the following:
a) Kiev’s regime deployed anti-air missile systems in Donetsk in and around the area where flight MH17 crashed.
b) An Ukrainian warplane SU-25 trailing flight MH17
c) the report pointed to the possibility of an air-to-air attack on MH17
d) the report also pointed to inconsistencies pertaining to the reports of the Ukrainian air traffic control
The Russian authorities did not come to any conclusion regarding who was to blame for shooting down the plane. (MH17 Show & Tell: It’s the West’s Turn – Russian Satellites and Radars Contradict West’s Baseless Claims)

5. The U.S., despite its global spying apparatus, has not shown any radar or satellite imagery to back its claim that Russia and the Eastern-Ukrainian opposition are responsible for the downing of MH17. The evidence it has presented so far is weak and based on pro-Kiev documents consisting of YouTube videos and various social media – “all of which are admittedly unverifiable and some of which is veritably fabricated.”:
Is US intelligence simply reading blogs? Or are the blogs somehow a clearinghouse of US intelligence? Or are the blogs fabrications by US intelligence in an attempt to frame Russia? One in particular, “Ukraine at War,” is a definitive collection of fabrications, biased propaganda, and dubious claims that appear to precede “US intelligence” claims. (Assigning Blame to East Ukraine Rebels: US Appeals to “Law of the Jungle” in MH17 Case)
6. “The Russian Defense Ministry pointed out that at the moment of destruction of MH-17 an American satellite was flying over the area”:
The Russian government urges Washington to make available the photos and data captured by the satellite.(How American Propaganda Works: “Guilt By Insinuation”)
7. A U.S. intelligence source claimed the “U.S. intelligence agencies do have detailed satellite images of the likely missile battery that launched the fateful missile, but the battery appears to have been under the control of Ukrainian government troops dressed in what look like Ukrainian uniforms”. These images could confirm the evidence presented by Russia to the effect that Kiev’s regime deployed anti-air missile systems in Donetsk in and around the area where flight MH17 crashed. (Fact number 4, Whistleblower: U.S. Satellite Images Show Ukrainian Troops Shooting Down MH17)

8. Russia called for an expert independent investigation:
President Putin has repeatedly stressed that the investigation of MH-17 requires “a fully representative group of experts to be working at the site under the guidance of the International Civil Aviation Organization (ICAO).”  Putin’s call for an independent expert examination by ICAO does not sound like a person with anything to hide. (How American Propaganda Works: “Guilt By Insinuation”)
9. The U.S. claimed, without evidence, but “with confidence” that Russia was involved:
[On  July 20, the US Secretary of State, John Kerry confirmed that pro-Russian separatists were involved in the downing of the Malaysian airliner and said that it was “pretty clear” that Russia was involved. Here are Kerry’s words:  “It’s pretty clear that this is a system that was transferred from Russia into the hands of separatists. We know with confidence, with confidence, that the Ukrainians did not have such a system anywhere near the vicinity at that point and time, so it obviously points a very clear finger at the separatists.” (Ibid.)
10. U.S. Secretary of State John Kerry's statement above regarding Russian involvement is contradicted by the Russian satellite photos and numerous eye witnesses on the ground. (Ibid.)

Read the rest here:

And while we are this, the Malaysian crash MH-17 crash may just serve as a Casus belli of World War III

Twenty-two US senators have introduced into the 113th Congress, Second Session, a bill,S.2277, "To prevent further Russian aggression toward Ukraine and other sovereign states in Europe and Eurasia, and for other purposes."

Note that prior to any evidence of any Russian aggression, there are already 22 senators lined up in behalf of preventing further Russian aggression.

Accompanying this preparatory propaganda move to create a framework for war, hot or cold with Russia, NATO commander General Philip Breedlove announced his plan for a deployment of massive military means in Eastern Europe that would permit lightening responses against Russia in order to protect Europe from Russian aggression…

However you look at this, it comprises a declaration of war. Moreover, these provocative and expensive moves are presented as necessary to counter Russian aggression for which there is no evidence.
Read the rest here

Oh, the Slate’s Fred Kaplan reminds the US government of their own version of MH17: Iran Air Flight 655
Fury and frustration still mount over the downing of Malaysia Airlines Flight 17, and justly so. But before accusing Russian President Vladimir Putin of war crimes or dismissing the entire episode as a tragic fluke, it’s worth looking back at another doomed passenger plane—Iran Air Flight 655—shot down on July 3, 1988, not by some scruffy rebel on contested soil but by a U.S. Navy captain in command of an Aegis-class cruiser called the Vincennes.
Read the rest here