Britain warns it will expose Putin’s financial secrets

Britain may broadcast the financial secrets of Russia’s ruling elite as part of the information war against the Putin regime, the Foreign Secretary has indicated.

Philip Hammond said he was interested by the idea of publicising the wealth of the Russian president’s inner circle in order to embarrass them in front of their people, as part of the response to the ongoing incursion into eastern Ukraine.

The Foreign Secretary warned that Putin is rapidly modernising his armed forces, and warned Russia’s bid to destabilise eastern Europe poses “the greatest single threat” to British national security.

Mr Hammond said that Britain must now “accept” that efforts to offer Russia its “rightful place” in the post-Cold War order had been “rebuffed”.

It marks a change in tone from the British government: David Cameron has repeated said that the door is open to Russia to normalise relations.

He warned that Russia’s rapid rearmament is a “significant cause for concern,” and confirmed that British intelligence agencies are now recruiting Russian speakers.

The wealth of Putin’s court is opaque, but undoubtedly runs into tens of billions of dollars held in offshore accounts and property in London and New York.

Official statements of Putin’s wealth – a £96,000 a year salary, a flat and three cars – are frequently met with derision.

Asked if there was a case for the “interesting” financial arrangements of members of Putin’s inner circle to be published by the British government, Mr Hammond replied: “There might be.”

“When we talk about having further steps that we can take, increasing the pressure on Russia, one the headings that we regularly review is strategic communication.

“It is an interesting thought and I will make sure the Strat Comms people are thinking precisely about that.”

Mr Cameron has suggested the BBC budget should be increased to help its Russian and Ukrainian language services counter Russian television propaganda.

Source: The Telegraph

China, Russia to finalize yet another major gas deal

Another major energy deal with Russia shows China is eager to develop overland energy supply lines that reduce its dependence on vulnerable sea lanes

China and Russia will seal an agreement later this year on piped gas from Western Siberia, China’s foreign minister said on Sunday, a deal that will continue Russia’s economic shift towards Asia and away from Western Europe.

Russia’s split with the west over Ukraine has pushed it closer to China, which is eager to develop overland energy supply lines that reduce its dependence on vulnerable sea lanes. China has taken a carefully neutral stance on the Ukraine conflict, while more broadly expressing its support for Russia.

The relationship between the two on-again, off-again Cold War allies is “mature and stable,” Chinese foreign minister Wang Yi told a press conference on Sunday. “There is enormous internal impetus and room for expansion.”

Much of that expansion will be in oil, gas and nuclear energy co-operation, he added. “We will fully begin construction of the eastern gas line and sign a co-operation agreement for the western line,” he said.

During a visit to Beijing in November, Russian president Vladimir Putin reached a preliminary agreement for Gazprom, the Kremlin-controlled energy group, to supply China’s state oil company CNPC with 30bn cubic metres of gas per year from the Altai region of western Siberia. However, most of the details — including the price of the gas — are still to be worked out.

Beijing expects the deal to be finalised later this year, leading to a pipeline that will, for the first time, allow Russia to choose between exporting gas to Asia or to Europe.

Russia has also made a commitment to sell gas from its far east to China, but gas from that area of Siberia can only be sold economically to Asia. In a $400bn agreement signed during Mr Putin’s visit to Shanghai in May, Russia agreed to sell up to 38bn cubic metres a year to China.

Chinese and Russian leaders officially inaugurated construction of the Power of Siberia pipeline in September last year, but little work can be done during the harsh Siberian winter. The two sides have also disagreed over financing for the massive projects, with Russia strapped for cash amid sanctions imposed by the West. To sweeten the deal for China, Russia has offered Chinese oil firms the chance to invest directly in its upstream operations. Russia’s deputy premier Arkardy Dvorkovich said at an investment forum last month that there are no longer political barriers to China controlling strategic assets.

Increased economic ties with Russia, particularly the Russian Far East, fall under the broader One Belt, One Road strategy of increasing exports and investment in Central Asia, Mr Wang said.

China wants to create a new Silk Road economic belt that roughly retraces trade networks active at the height of China’s presence in Central Asia, during the Han dynasty 2,000 years ago, as well as a 21st-century maritime Silk Road that revisits the greatest extent of its sea power during the early Ming dynasty.

Rising investment in Central Asia, Southeast Asia, South Asia and Africa would allow China to export its surplus capacity in steel, rail and other industries, an overhang that is increasingly weighing on its domestic economy.

An added attraction for energy-hungry China is the creation of overland rail, road and pipe networks, which it views as more defensible than easily blockaded sea routes including the Suez Canal and the narrow Strait of Malacca.

Source: FT

NATO tries to torpedo Berlin with fake numbers and no intel

Top NATO commander General Philip Breedlove has raised hackles in Germany with his public statements about the Ukraine crisis.

Hawks in Washington seem determined to torpedo Berlin’s approach of finding a diplomatic solution to the Ukraine crisis, and bellicose statements from NATO’s top commander in Europe has been helping.

It was quiet in eastern Ukraine last Wednesday. Indeed, it was another quiet day in an extended stretch of relative calm. The battles between the Ukrainian army and the pro-Russian separatists had largely stopped and heavy weaponry was being withdrawn. The Minsk cease-fire wasn’t holding perfectly, but it was holding.

On that same day, General Philip Breedlove, the top NATO commander in Europe, stepped before the press in Washington. Putin, the 59-year-old said, had once again “upped the ante” in eastern Ukraine — with “well over a thousand combat vehicles, Russian combat forces, some of their most sophisticated air defense, battalions of artillery” having been sent to the Donbass. “What is clear,” Breedlove said, “is that right now, it is not getting better. It is getting worse every day.”

German leaders in Berlin were stunned. They didn’t understand what Breedlove was talking about. And it wasn’t the first time. Once again, the German government, supported by intelligence gathered by the Bundesnachrichtendienst (BND), Germany’s foreign intelligence agency, did not share the view of NATO’s Supreme Allied Commander Europe (SACEUR).

The pattern has become a familiar one. For months, Breedlove has been commenting on Russian activities in eastern Ukraine, speaking of troop advances on the border, the amassing of munitions and alleged columns of Russian tanks. Over and over again, Breedlove’s numbers have been fake, playing into the hands of the hardliners in the US Congress and in NATO.

The German government is alarmed. Are the Americans trying to thwart European efforts at mediation led by Chancellor Angela Merkel? Sources in the Chancellery have referred to Breedlove’s comments as “dangerous propaganda.” Foreign Minister Frank-Walter Steinmeier even found it necessary recently to bring up Breedlove’s comments with NATO General Secretary Jens Stoltenberg.

But Breedlove hasn’t been the only source of friction. Europeans have also begun to see others as hindrances in their search for a diplomatic solution to the Ukraine conflict. First and foremost among them is Victoria Nuland, head of European affairs at the US State Department. She and others would like to see Washington deliver arms to Ukraine and are supported by Congressional Republicans as well as many powerful Democrats.

Breedlove’s announcements are making Berlin very uneasy. False claims and exaggerated accounts, warned a top German official during a recent meeting on Ukraine, have put NATO — and by extension, the entire West — in danger of losing its credibility.

The fact that NATO has no intelligence agency of its own plays into Breedlove’s hands. The alliance relies on intelligence gathered by agents from the US and Britain.

“I stand by all the public statements I have made during the Ukraine crisis,” he wrote to SPIEGEL in response to a request for a statement accompanied by a list of his controversial claims. He wrote that it was to be expected that assessments of NATO’s intelligence center, which receives information from all 33 alliance members in addition to partner states, doesn’t always match assessments made by individual nations.

Berlin has the impression that important power brokers in Washington are working against the Europeans. Berlin officials have noticed that, following the visit of American politicians or military leaders in Kiev, Ukrainian officials are much more bellicose and optimistic about the Ukrainian military’s ability to win the conflict on the battlefield. “We then have to laboriously bring the Ukrainians back onto the course of negotiations,” said one Berlin official.

Nuland, who is seen as a possible secretary of state should the Republicans win back the White House in next year’s presidential election, is unfortunately an important voice in US policy.

A massive troop training range is located in Yavoriv in western Ukraine near the Polish border. According to the Pentagon’s plans, American officers are going to train troops on how to use American artillery-locating radar devices.

The US Army in Europe commander Lt. Gen. Hodges announced in January that the training would start at the beginning of March, but on Tuesday, Hodges said during an appearance in Berlin that he expects the training will still begin at some point this month.

Source: Der Spiegel

Ukrainian army leaves fracking equipment behind

On the outskirts of the village of Shishkovo under the snow and rain rusts the expensive equipment: four residential trailers for employees, diesel substation and equipment for conducting seismic surveys. Judging by the labels this equipment was certified in the U.S., and now it is in possession of the people of Donbass.

Local residents recall that this was a temporary base of geologists from Ukrgazdobicha. The residents of the Shishkovo witnessed the beginning of the work.

“This equipment was brought at a time when in June the Ukrainian tanks came from Metallist and started shelling the city. As we suppose, Kiev authorities planned a quick capture of South-East, Donbass in particular, for further extraction of shale gas,” explains a local resident Vladimir.

“They were from Western Ukraine. Geo-research. They were saying something about gas, said there is shale gas here. First there were two vehicles, then 10 -12. There was a lot,” says a resident.

Earlier the field was divided into squares, here the expert gasman conducted seismic studies and measurements and were preparing to install a rig.

Local mechanics and welders were not hired, because many of the them spoke out against the extraction of shale gas.

The residents of Shishkovo were not notified of the purpose of the camp. The camp was staffed mainly with residents of Western Ukraine, which is revealed by the documents left behind : “Ivano-Frankovsk, Cherkassy, Poltava region, Zhitomir region.” The documents also mention both gas and oil research.

According to the paperwork for 2013 found onsite, similar bases were also located in villages Shevchenko, Raigorodka and Gerasimovka.

As the local residents say, the research continued until the Ukrainian national guard had left. Along with tanks and howitzers the Ukrainian soldiers also took part of the seismic equipment, but in the rush they did not have the time to gather everything.

This abandoned base can be observed well from the Ukrainian side of the frontline. Just over this field, a mile from the abandoned base is the town of Schastye, which is under the complete control of the Ukrainian army. Even now, in the midst of a ceasefire it is not safe to be here. Locals say that during evening hours the Ukrainian Armed forces and volunteer battalions begin to fire at each other.

Translated from Russian LifeNews

Suspects named in Nemtsov murder

The Nemtsov murder investigation has focused on the theory that the crime was organized by a Chechen militant commander Adam Osmayev, of the Dzhokhar Dudayev battalion, who also was named in the case concerning the attempt to assassinate Vladimir Putin. Investigators are allowing for the possibility that the militants, who fought against DPR and LPR, operated at the behest of Ukrainian secret services, since the murder of the opposition leader would have discredited the Russian leadership and destabilize the political situation.

A law enforcement source had told the media that the investigating group has evidence that Ukrainian secret services played a role in Nemtsov’s murder. On the day of the murder the Investigative Committee spokesperson Vladimir Markin announced that the investigators are studying the possibility the murder was intended to destabilize the political situation in the country.

“The murder could have been used as a provocation to destabilize the situation, with Nemtsov becoming a sort of a sacrificial lamb for those who are not overly choosy in their political methods,” Markin told Izvestiya.

The investigators are also working on other versions: political, extremist, business, and personal. However, judging by the quality of preparation and implementation, it was done by professionals. The Izvestiya source said that the killer shot Nemtsov only a few tens of meters from the Kremlin, and it since became known that the murder took place in a spot not covered by a surveillance camera. Moreover, they chose a time during which there are no traffic jams, but there is still heavy traffic in the center which allowed the killers’ car to become lost among other vehicles.

The information that Ukraine’s special services ordered the murder is being verified. The bandits may have performed a mission assigned by Ukrainian secret services, but also avenged the death of their former leader Isa Munaev. He was killed on February 1 during the battle for Debaltsevo, after which the battalion’s command was taken over by Adam Osmayev.

The so-called Dzhokhar Dudayev international peacekeeping battalion is fighting on Ukraine’s side, and was formed by Munaev in March 2014. Munaev fought in the first Chechen campaign against Russian forces, and after 1999 he declared himself the commander of the South-Western sector and participated in organizing acts of terrorism.

Munaev fled Chechnya in 2006 for Denmark, where he received asylum. He founded the movement “Free Caucaus” which, according to secret services, financed terrorists. When in 2014 the Ukrainian government launched the ATO against LPR and DPR, Munaev went to Ukraine and declared the formation of his battalion. Russian sources indicate that he was personally invited Igor Kolomoisky, who financed the battalion. The battalion’s core were Chechen immigrants in Denmark, and citizens of other countries who belonged to terrorist organizations.

Isa Munaev was one of the individuals, along with the commanders of Azov and Dnepr, who supported terrorism on Russia’s soil and who were ordered delivered to Chechnya by Ramzan Kadyrov.

Russian services are trying to establish how many people participated in the preparation and implementation of Nemtsov’s murder. It cannot be ruled out that, in addition to killers and spotters, there were also “controllers” in Moscow who observed the murder’s aftermath and political effect. One of them may have been the Ukrainian deputy Aleksey Goncharenko. Experts who were questioned by Izvestiya believe the theory of foreign secret service involvement to have merit.

Translated from Russian LifeNews

The neoconservative threat to international relations

This week I was invited to address an important conference of the Russian Academy of Sciences in Moscow. Scholars from Russia and from around the world, Russian government officials, and the Russian people seek an answer as to why Washington destroyed during the past year the friendly relations between America and Russia that President Reagan and President Gorbachev succeeded in establishing. All of Russia is distressed that Washington alone has destroyed the trust between the two major nuclear powers that had been created during the Reagan-Gorbachev era, trust that had removed the threat of nuclear armageddon. Russians at every level are astonished at the virulent propaganda and lies constantly issuing from Washington and the Western media. Washington’s gratuitous demonization of the Russian president, Vladimir Putin, has rallied the Russian people behind him. Putin has the highest approval rating ever achieved by any leader in my lifetime.

Washington’s reckless and irresponsible destruction of the trust achieved by Reagan and Gorbachev has resurrected the possibility of nuclear war from the grave in which Reagan and Gorbachev buried it. Again, as during the Cold War the specter of nuclear armageddon stalks the earth.

Why did Washington revive the threat of world annihilation? Why is this threat to all of humanity supported by the majority of the US Congress, by the entirety of the presstitute media, and by academics and think-tank inhabitants in the US, such as Motyl and Weiss, about whom I wrote recently?

It was my task to answer this question for the conference. You can read my February 25 and February 26 addresses below. But first you should understand what nuclear war means. You can gain that understanding here:

The Threat Posed to International Relations By The Neoconservative Ideology of American Hegemony,
Address to the 70th Anniversary of the Yalta Conference, Hosted by Institutes of the Russian Academy of Sciences and Moscow State Institute of International Relations, Moscow, February 25, 2015, Hon. Paul Craig Roberts

Colleagues,

What I propose to you is that the current difficulties in the international order are unrelated to Yalta and its consequences, but have their origin in the rise of the neoconservative ideology in the post-Soviet era and its influence on Washington’s foreign policy.

The collapse of the Soviet Union removed the only constraint on Washington’s power to act unilaterally abroad. At that time China’s rise was estimated to require a half century. Suddenly the United States found itself to be the Uni-power, the “world’s only superpower.” Neoconservatives proclaimed “the end of history.”

By the “end of history” neoconservatives mean that the competition between socio-economic-political systems is at an end. History has chosen “American Democratic-Capitalism.” It is Washington’s responsibility to exercise the hegemony over the world given to Washington by History and to bring the world in line with History’s choice of American democratic-capitalism.

In other words, Marx has been proven wrong. The future does not belong to the proletariat but to Washington.

The neoconservative ideology raises the United States to the unique status of being “the exceptional country,” and the American people acquire exalted status as “the indispensable people.”

If a country is “the exceptional country,” it means that all other countries are unexceptional. If a people are “indispensable,” it means other peoples are dispensable. We have seen this attitude at work in Washington’s 14 years of wars of aggression in the Middle East. These wars have left countries destroyed and millions of people dead, maimed, and displaced. Yet Washington continues to speak of its commitment to protect smaller countries from the aggression of larger countries. The explanation for this hypocrisy is that Washington does not regard Washington’s aggression as aggression, but as History’s purpose.

We have also seen this attitude at work in Washington’s disdain for Russia’s national interests and in Washington’s propagandistic response to Russian diplomacy.

The neoconservative ideology requires that Washington maintain its Uni-power status, because this status is necessary for Washington’s hegemony and History’s purpose.

The neoconservative doctrine of US world supremacy is most clearly and concisely stated by Paul Wolfowitz, a leading neoconservative who has held many high positions: Deputy Assistant Secretary of Defense, Director of Policy Planning US Department of State, Assistant Secretary of State, Ambassador to Indonesia, Undersecretary of Defense for Policy, Deputy Secretary of Defense, President of the World Bank.

In 1992 Paul Wolfowitz stated the neoconservative doctrine of American world supremacy:

“Our first objective is to prevent the re-emergence of a new rival, either on the territory of the former Soviet Union or elsewhere, that poses a threat on the order of that posed formerly by the Soviet Union. This is a dominant consideration underlying the new regional defense strategy and requires that we endeavor to prevent any hostile power from dominating a region whose resources would, under consolidated control, be sufficient to generate global power.”

For clarification, a “hostile power” is a country with an independent policy (Russia, China, Iran, and formerly Saddam Hussein, Gaddafi, Assad).

This bold statement struck the traditional American foreign policy establishment as a declaration of American Imperialism. The document was rewritten in order to soften and disguise the blatant assertion of supremacy without changing the intent. These documents are available online, and you can examine them at your convenience.

Softening the language allowed the neoconservatives to rise to foreign policy dominance. The neoconservatives are responsible for the Clinton regime’s attacks on Yugoslavia and Serbia. Neoconservatives, especially Paul Wolfowitz, are responsible for the George W. Bush regime’s invasion of Iraq. The neoconservatives are responsible for the overthrow and murder of Gaddafi in Libya, the assault on Syria, the propaganda against Iran, the drone attacks on Pakistan and Yemen, the color revolutions in former Soviet Republics, the attempted “Green Revolution” in Iran, the coup in Ukraine, and the demonization of Vladimir Putin.

A number of thoughtful Americans suspect that the neoconservatives are responsible for 9/11, as that event gave the neoconservatives the “New Pearl Harbor” that their position papers said was necessary in order to launch their wars for hegemony in the Middle East. 9/11 led directly and instantly to the invasion of Afghanistan, where Washington has been fighting since 2001. Neoconservatives controlled all the important government positions necessary for a “false flag” attack.

Neoconservative Assistant Secretary of State Victoria Nuland, who is married to another neoconservative, Robert Kagan, implemented and oversaw Washington’s coup in Ukraine and chose the new government.

The neoconservatives are highly organized and networked, well-financed, supported by the print and TV media, and backed by the US military/security complex and the Israel Lobby. There is no countervailing power to their influence on US foreign power.

The neoconservative doctrine goes beyond the Brzezinski doctrine, which dissented from Detente and provocatively supported dissidents inside the Soviet empire. Despite its provocative character, the Brzezinski doctrine remained a doctrine of Great Power politics and containment. It is not a doctrine of US world hegemony.

While the neoconservatives were preoccupied for a decade with their wars in the Middle East, creating a US Africa Command, organizing color revolutions, exiting disarmament treaties, surrounding Russia with military bases, and “pivoting to Asia” to surround China with new air and naval bases, Vladimir Putin led Russia back to economic and military competence and successfully asserted an independent Russian foreign policy.

When Russian diplomacy blocked Washington’s planned invasion of Syria and Washington’s planned bombing of Iran, the neoconservatives realized that they had failed the “first objective” of the Wolfowitz Doctrine and had allowed “the re-emergence of a new rival . . . on the territory of the former Soviet Union” with the power to block unilateral action by Washington.

The attack on Russia began. Washington had spent $5 billion over a decade creating non-governmental organizations (NGOs) in Ukraine and cultivating Ukrainian politicians. The NGOs were called into the streets. The extreme nationalists or nazi elements were used to introduce violence, and the elected democratic government was overthrown. The intercepted conversation between Victoria Nuland and the US ambassador in Kiev, in which the two Washington operatives choose the members of the new Ukrainian government, is well known.

If the information that has recently come to me from Armenia and Kyrgyzstan is correct, Washington has financed NGOs and is cultivating politicians in Armenia and the former Soviet Central Asian Republics. If the information is correct, Russia can expect more “color revolutions” or coups in other former territories of the Soviet Union. Perhaps China faces a similar threat in Uyghurstan.

The conflict in Ukraine is often called a “civil war.” This is incorrect. A civil war is when two sides fight for the control of the government. The break-away republics in eastern and southern Ukraine are fighting a war of secession.

Washington would have been happy to use its coup in Ukraine to evict Russia from its Black Sea naval base as this would have been a strategic military achievement. However, Washington is pleased that the “Ukraine crisis” that Washington orchestrated has resulted in the demonization of Vladimir Putin, thus permitting economic sanctions that have disrupted Russia’s economic and political relations with Europe. The sanctions have kept Europe in Washington’s orbit.

Washington has no interest in resolving the Ukrainian situation. The situation can be resolved diplomatically only if Europe can achieve sufficient sovereignty over its foreign policy to act in Europe’s interest instead of Washington’s interest.

The neoconservative doctrine of US world hegemony is a threat to the sovereignty of every country. The doctrine requires subservience to Washington’s leadership and to Washington’s purposes. Independent governments are targeted for destabilization. The Obama regime overthrew the reformist government in Honduras and currently is at work destabilizing Venezuela, Bolivia, Ecuador, and Argentina, and most likely also Armenia and the former Central Asian Soviet Republics.

Yalta and its consequences have to do with Great Power rivalries. But in the neoconservative doctrine, there is only one Great Power–the Uni-power. There are no others, and no others are to be permitted

Therefore, unless a modern foreign policy arises in Washington and displaces the neoconservatives, the future is one of conflict.

It would be a strategic error to dismiss the neoconservative ideology as unrealistic. The doctrine is unrealistic, but it is also the guiding force of US foreign policy and is capable of producing a world war.

In their conflict with Washington’s hegemony, Russia and China are disadvantaged. The success of American propaganda during the Cold War, the large differences between living standards in the US and those in communist lands, overt communist political oppression, at times brutal, and the Soviet collapse created in the minds of many people nonexistent virtues for the United States. As English is the world language and the Western media is cooperative, Washington is able to control explanations regardless of the facts. The ability of Washington to be the aggressor and to blame the victim encourages Washington’s march to more aggression.

This concludes my remarks. Tomorrow I will address whether there are domestic political restraints or economic restraints on the neoconservative ideology.

Paul Craig Roberts, Address to the 70th Anniversary of the Yalta Conference, Moscow, February 26, 2015

Colleagues,

At the plenary session yesterday I addressed the threat that the neoconservative ideology poses to international relations. In this closing session I address whether there are any internal restraints on this policy from the US population and whether there are economic restraints.

Just as 9/11 served to launch Washington’s wars for hegemony in the Middle East, 9/11 served to create the American police state. The Constitution and the civil liberties it protects quickly fell to the accumulation of power in the executive branch that a state of war permitted.

New laws, some clearly pre-prepared such as the PATRIOT Act, executive orders, presidential directives, and Department of Justice memos created an executive authority unaccountable to the US Constitution and to domestic and international law.

Suddenly Americans could be detained indefinitely without cause presented to a court. Habeas corpus, a constitutional protection which prohibits any such detention, has been set aside.

Suddenly people could be tortured into confessions in violation of the right against self-incrimination and in violation of domestic and international laws against torture.

Suddenly Americans and Washington’s closest allies could be spied on indiscriminately without the need of warrants demonstrating cause.

The Obama regime added to the Bush regime’s transgressions the assertion of the right of the executive branch to assassinate US citizens without due process of law.

The police state was organized under a massive new Department of Homeland Security. Almost immediately whistleblower protections, freedom of the press and speech, and protest rights were attacked and reduced.

It was not long before the director of Homeland Security declared that the department’s focus has shifted from Muslim terrorists to “domestic extremists,” an undefined category. Anyone can be swept into this category. Homes of war protesters were raided and grand juries were convened to investigate the protesters. Americans of Arab descent who donated to charities–even charities on the State Department’s approved list–that aided Palestinian children were arrested and sentenced to prison for “providing material support to terrorism.”

All of this and more, including police brutality, has had a chilling effect on protests against the wars and the loss of civil liberty. The rising protests from the American population and from soldiers themselves that eventually forced Washington to end the Vietnam War have been prevented in the 21st century by the erosion of rights, intimidation, loss of mobility (no-fly list), job dismissal, and other heavy-handed actions inconsistent with a government accountable to law and to the people.

In an important sense, the US has emerged from the “war on terror” as an executive branch dictatorship unconstrained by the media and barely, if at all, constrained by Congress and the federal courts. The lawlessness of the executive branch has spread into governments of Washington’s vassal states and into the Federal Reserve, the International Monetary Fund, and the European Central Bank, all of which violate their charters and operate outside their legal powers.

Jobs offshoring destroyed the American industrial and manufacturing unions. Their demise and the current attack on the public employee unions has left the Democratic Party financially dependent on the same organized private interest groups as the Republicans. Both parties now report to the same interest groups. Wall Street, the military/security complex, the Israel Lobby, agribusiness, and the extractive industries (oil, mining, timber) control the government regardless of the party in power. These powerful interests all have a stake in American hegemony.

The message is that the constellation of forces preclude internal political change.

Hegemony’s Archilles heel is the US economy. The fairy tale of American economic recovery supports America’s image as the safe haven, an image that keeps the dollar’s value up, the stock market up, and interest rates down. However, there is no economic information that supports this fairy tale.

Real median household income has not grown for years and is below the levels of the early 1970s. There has been no growth in real retail sales for six years. The labor force is shrinking. The labor force participation rate has declined since 2007 as has the civilian employment to population ratio. The 5.7 percent reported unemployment rate is achieved by not counting discouraged workers as part of the work force. (A discouraged worker is a person who is unable to find a job and has given up looking.)

A second official unemployment rate, which counts short-term (less than one year) discouraged workers and is seldom reported, stands at 11.2 percent. The US government stopped including long-term discouraged workers (discouraged for more than one year) in 1994. If the long-term discouraged are counted, the current unemployment rate in the US stands at 23.2 percent.

The offshoring of American manufacturing and professional service jobs such as software engineering and Information Technology has decimated the middle class. The middle class has not found jobs with incomes comparable to those moved abroad. The labor cost savings from offshoring the jobs to Asia has boosted corporate profits, the performance bonuses of executives and capital gains of shareholders. Thus all income and wealth gains are concentrated in a few hands at the top of the income distribution. The number of billionaires grows as destitution reaches from the lower economic class into the middle class. American university graduates unable to find jobs return to their childhood rooms in their parents’ homes and work as waitresses and bartenders in part-time jobs that will not support an independent existence.

With a large percentage of the young economically unable to form households, residential construction, home furnishings, and home appliances suffer economic weakness. Cars can still be sold only because the purchaser can obtain 100 percent financing in a six-year loan. The lenders sell the loans, which are securitized and sold to gullible investors, just as were the mortgage-backed financial instruments that precipitated the 2007 US financial crash.

None of the problems that created the 2008 recession, and that were created by the 2008 recession, have been addressed. Instead, policymakers have used an expansion of debt and money to paper over the problems. Money and debt have grown much more than US GDP, which raises questions about the value of the US dollar and the credit worthiness of the US government. On July 8, 2014, my colleagues and I pointed out that when correctly measured, US national debt stands at 185 percent of GDP.

This raises the question: Why was the credit rating of Russia, a country with an extremely low ratio of debt to GDP, downgraded and not that of the US? The answer is that the downgrading of Russian credit worthiness was a political act directed against Russia in behalf of US hegemony.

How long can fairy tales and political acts keep the US house of cards standing? A rigged stock market. A rigged interest rate. A rigged dollar exchange value, a rigged and suppressed gold price. The current Western financial system rests on world support for the US dollar and on nothing more.

The problem with neoliberal economics, which pervades all countries, even Russia and China, is that neoliberal economics is a tool of American economic imperialism, as is Globalism. As long as countries targeted by Washington for destabilization support and cling to the American doctrines that enable the destabilization, the targets are defenseless.

If Russia, China, and the BRICS Bank were willing to finance Greece, Italy, and Spain, perhaps those countries could be separated from the EU and NATO. The unraveling of Washington’s empire would

Dr. Paul Craig Roberts was Assistant Secretary of the Treasury for Economic Policy and associate editor of the Wall Street Journal. He was columnist for Business Week, Scripps Howard News Service, and Creators Syndicate. He has had many university appointments. His internet columns have attracted a worldwide following. Roberts’ latest books are The Failure of Laissez Faire Capitalism and Economic Dissolution of the West and How America Was Lost.

For the illustrated version go here:

‘Don’t kick Russia out of SWIFT’

European Central Bank policymaker Ewald Nowotny has warned against kicking Russian banks out of the SWIFT payments transfer system as part of tighter sanctions on Moscow, the Austria Press Agency quoted him as saying on Thursday.

Such a move “we would see as very problematic because it could perhaps undermine confidence in this system,” the governor of Austria’s central bank told reporters in Brussels after meeting European Commissioner Pierre Moscovici.

Russia has drafted a law to regulate a local equivalent to SWIFT in response to concerns that the Belgian-based system, the world’s biggest for electronic payments, could be a focus of Western sanctions against Moscow over the Ukraine crisis.

In 2012, SWIFT cut off Iranian banks that were the subject of EU sanctions over Iran’s nuclear program — a step that shut down a major avenue through which Iran did business with the rest of the world.

APA quoted Nowotny as saying Austria would not be immediately affected should Russian banks be excluded from SWIFT, but that Russia could retaliate, “and this could of course affect all companies that do business in Russia.”

He reiterated that Austrian banks had no plans to leave Russia because they had proven themselves to be an element of stability in the latest economic crisis. Raiffeisen Bank International and Bank Austria are active there.

Source: Reuters

Russia, Cyprus signs military port deal

Ties between Russia and the West have plummeted in the wake of the Ukraine crisis, but Putin said the ships allowed to dock at Cypriot ports would mostly be used in international anti-terrorism and piracy efforts.

“I don’t think this should worry anyone,” he said.

Cyprus, which is heavily dependent on Russian investment, played down Wednesday’s deal, saying Russian ships had always had access to its ports. A government source said it was simply the first time access had been spelled out in a separate accord.

Russia has sought to forge stronger ties with individual members of the European Union, including Cyprus, Hungary and Greece, after the 28-nation bloc, along with the United States, imposed cumulative sanctions on Moscow for its role in Ukraine.

Officials in Brussels fear this policy is aimed at weakening EU resolve and preventing a further tightening of sanctions.

Earlier this week Russia restructured a 2.5 billion euro ($2.8 billion) loan to Cyprus it signed in 2011, cutting the annual interest rate to 2.5 percent from 4.5 percent and the redemption period to 2018-2021.

Russia has sought Mediterranean ports for its navy to visit since Moscow lost a military maintenance base on Syria’s coast during fighting between anti-government rebels and troops loyal to President Bashar al-Assad, whom Putin has supported in the nearly four-year conflict.

Russian agency TASS said Wednesday’s deal included the possibility of Russian ships and warplanes using airports and seaports in humanitarian crises.

Long been a destination for cash from Russia, Cyprus saw capital outflows of a record $151 billion last year. U.S.-based non-profit organization Global Financial Integrity said in 2013 that illicit money flows from Russia to Cyprus amounted to at least $211.5 billion between 1994-2011. ($1 = 0.8807 euros)

Source: Maritime Executive

Russia plans own space station

Russia announced plans Tuesday evening to continue operating the International Space Station until 2024 — but afterwards, it will take its modules away to form its own space station.

The ISS, which was assembled in orbit between 1998 and 2011, is made up mainly of modules owned by NASA and Roscosmos (the Russian space agency), along with some owned by Japan and Europe. Original plans called for it to be retired by 2020, but in January 2014, President Obama announced plans to extend its mission to 2024, and possibly to 2028.

That, however, depended on Russia’s cooperation, because under the station’s current configuration, modules from both countries are needed to operate it. Last May, due to tensions from economic sanctions imposed over the invasion of Ukraine, Russia threatened to pull out of the project in 2020.

The new announcement ensures that ISS will live on until 2024 — but puts the future of US-Russia cooperation in space in doubt.

Since 1975, when the US Apollo and Soviet Soyuz spacecrafts linked up in orbit, the US and Russia have worked together in space. And recently, as political tensions between the two countries have grown, space has remained one of few areas of cooperation.

If Russia goes through with this plan, though, the era of space cooperation might be over. NASA currently relies on Russia to ferry its astronauts to the ISS, but by 2017, it’s hoping that private American companies (SpaceX and Boeing) will be able to carry out these missions instead. Russia, meanwhile, says it plans to use several of its ISS modules to assemble its own, new space station, possibly as a precursor for human missions to the moon. NASA’s longer-term plans for crewed exploration are uncertain, but no proposals involve collaboration with Russia.

The good news is that in the short term, the complex, expensive ISS will continue to be used for research (helping scientists figure out, for instance, how to keep humans healthy in space) instead of being thrown away prematurely for political reasons. But the bad news for space exploration as a whole is that the world’s two most capable space programs might soon be competing with each other, instead of working together.

Source: Vox

France will not send military, arms to Kiev

France has no plans of sending military instructors or delivering equipment to Ukraine as opposed to Great Britain, French Foreign Minister Laurent Fabius said Wednesday.

On Tuesday, British Prime Minister David Cameron announced that Britain would send instructors to Ukraine to train the country’s military, Sputniknews reported.

“Great Britain has taken a hardline to the situation and is considering a number of measures that you have said [sending military instructors], which Prime Minister David Cameron announced. We have also taken a firm position, but are still pushing for the de-escalation of the conflict,” Fabius said on France Info radio station.

France is party to the Normandy format talks on Ukrainian reconciliation, which also includes Russia, Germany and Ukraine. The most recent Normandy-quartet meeting between foreign ministers took place in Paris on Tuesday.

Kiev authorities repeatedly asked foreign partners for lethal assistance. On Tuesday, Ukrainian Interior Minister Anton Gerashchenko said that the United Arab Emirates had agreed to send weapons and military hardware to Ukraine.

A number of European states, including Germany, refused to arm Kiev. The United States, where according to a recent poll by Pew Research Center more than half of the respondents oppose sending weapons to Ukraine, is yet to make a decision on the matter.

Russia ratifies $100 billion BRICS development bank

The Russian State Duma has ratified the $100 billion BRICS bank that’ll serve as a pool of money for infrastructure projects in Russia, Brazil, India, China and South Africa, and challenge the dominance of the Western-led World Bank and the IMF.

The New Development Bank is expected to start fully functioning by the end of 2015, according to the Russian Finance Ministry.

Russia has agreed to provide $2 billion dollars from the federal budget for the bank over the next seven years.

It will have three-tiers of corporate governance, with a Board of Governors, Board of Directors and a President.

The bank’s board of directors will hold its first meeting in Ufa in Russia in April. Russian Finance Minister Anton Siluanov is likely to become the bank’s first Chairman of the Board of Governors, according to Deputy Finance Minister Sergei Storchak talking on the Russia 24 TV channel.

The decision to establish the BRICS bank, along with a $100 billion reserve currency pool, was made in July 2014. Each of the five member countries is expected to allocate an equal share of the $50 billion startup capital that will be expanded to $100 billion.

The bank will be headquartered in Shanghai, India will serve as the first five-year rotating president, and the first Chairman of the Board of Directors will come from Brazil.

Source: RT

State Department’s Nuland wants to ‘fight against the Europeans’

There are increasingly signs that Angela Merkel and Francois Hollande operated behind the backs of the Americans, when they traveled to Minsk last week, in an attempt to reach an agreement between the warring factions.

The 53-year-old European representative of the US government, Victoria Nuland, is responsible for guiding the United States through the Ukraine crisis and solving the problems with Russian President Vladimir Putin. But in the crisis Nuland has herself become a problem.

The American gave an internal briefing to the US delegation at the Munich Security Conference last Friday. She sat on the sixth floor of the Hotel Bayerischer Hof; in the room were perhaps two dozen US diplomats and senators. The German Defense Minister Ursula von der Leyen had just publicly spoken about the fact that weapon deliveries could serve as an accelerant in eastern Ukraine. The Americans were angry.

According to the German “Bild” newspaper, Nuland said, “We can fight the Europeans.”

According to the report, Nuland called Chancellor Merkel’s trip to visit Russian President Vladimir Putin “Merkel’s Moscow stuff.” The atmosphere heated up; one of the senators was to have ridiculed the German Defense Minister (the “Defeatism Minister”); and made a reference to the Europeans’ “Moscow bullshit”.

The top diplomat Nuland will be considered a potential new Secretary of State. She is married to Robert Kagan, a neo-conservative thinker. Last year he published a text on why America must remain the undisputed leader of the world.

She already managed to make headlines after the Munich Security Conference last year with her somewhat limited mastery of language.

At that time she flew from Munich via Cyprus and Prague to Kiev, and on the way she called Geoffrey Pyatt, the US ambassador to Ukraine. Nuland dispensed with special security procedures and used her normal mobile phone. So the conversation went unencrypted.

In the evening of February 4, 2014, a four minute and eleven second recording appeared on YouTube. The conversation between the two top diplomats gave a rare glimpse into the world of American diplomacy.

At the end of the call Nuland mentioned a proposal by the US government, meant to outmaneuver the hesitant Europeans, which made her world-​​famous.

Shortly before she had spoken with the United Nations: the United Nations should send an envoy and engage with Ukraine, then the EU would no longer have much to say. “That would be great, I think, to help advance this thing, the UN would advance things,” Nuland said, and then added: “Fuck the EU”.

Source: RussiaInsider

Putin says US is already arming Ukraine

Russian President Vladimir Putin says the US is supplying Kiev with lethal weapons, telling reporters that the conflict in Ukraine will not be resolved through military escalation.

“According to our intelligence, [US] weapons are already being delivered,” Putin was shown on state television Channel One as telling a press conference on Tuesday, when asked if a shipment of lethal hardware from Washington to Kiev would fan the flames of war in eastern Ukraine.

Putin, speaking in Budapest during a presidential visit to Hungary, added that arms deliveries would only contribute to the loss of lives in the war-torn region.

“I am deeply convinced that whoever and whatever weapons are delivered to the conflict zone, the [outcome] will always be bad … the number of victims could increase,” he said in comments widely published by Russian media.

Kiev and Western nations, in turn, have for months accused Moscow of arming pro-Russian separatists in eastern Ukraine — a charge the Kremlin has repeatedly denied.

In December the US Congress passed legislation authorizing the sending of arms to Kiev. But while US President Barack Obama signed the measure into law, he has been hesitant to use the option, amid widespread warnings arming Kiev would be seen as a declaration of war.

NATO and Europe on diplomatic collision course

The fraught relationship between Russia and the West, which was supposed to improve following an agreement over Ukraine, has descended instead into renewed acrimony after a series of tense military and diplomatic confrontations.

France and Germany, which had brokered the Minsk accord last week, were yesterday trying to hold together the increasingly fragile ceasefire in Ukraine amid reports that fighting was spreading once again.

Kremlin-backed separatists and Cossack fighters triumphantly paraded through Debaltseve, a strategic point they had captured in the past 48 hours, leaving the Atlanticist project to expand NATO into Ukraine in tatters.

Britain, which along with the EU will be strongly criticised by a House of Lords committee today for “sleep-walking into this crisis”, was drawn towards centre-stage after two Russian Bear bombers off the coast of Cornwall – but just outside UK airspace – were met by RAF jets scrambled from their base in Coningsby, Lincolnshire.

The apparent probe of British readiness came soon after the Defence Secretary, Michael Fallon, accused President Vladimir Putin of a “campaign of destabilisation to the Baltic countries”. The Russian leader, he said, presented “as much of a threat to Europe as ISIS”.

Russian deputy Foreign Minister Alexander Lukashevich declared that Fallon’s war-mongering comments were “already beyond diplomatic ethics”, adding: “The characterisation of Russia is completely intolerable. We will find a way to respond to the comments.”

In London, Rory Stewart, the chairman of the Commons Defence Committee, said the West was on a “political razor-edge”. He urged all British political parties to write into their manifestoes a commitment to spend two per cent of GDP on defence – as required by Nato. He also asked them to prepare to deal with threats such as cyber-attacks, irregular troops, and propaganda.

The British Government, which is one of the guarantors of the territorial integrity of Ukraine in return for it giving up a nuclear arsenal, is worried that Germany and France may have already recognised separate regions.

“It [the committee] believes that the EU, and by implication the UK, was guilty of sleep-walking into this crisis,” said the committee chairman, Lord Tugendhat. “The lack of robust analytical capacity, in both the UK and the EU, effectively led to a catastrophic misreading of the mood in the run-up to the crisis.”

An inspection by Dutch military specialists revealed no military activities on the part of Russia in the Rostov region bordering Ukraine, the head of the Russian Defense Ministry’s International Treaties Implementation Department told RIA Novosti on Friday.

Dutch military experts inspected 13,000 square kilometers (5,000 square miles) in Russia’s Rostov Region bordering Ukraine, Sergei Ryzhkov added.

“The inspection took place in accordance with the Vienna Document and was carried out not only on the ground, but also with the help of helicopters,” Sergei Ryzhkov said.

Dutch military inspected the same area in the Rostov Region bordering Ukraine that Ukrainian specialists chose for inspection earlier.

Kiev authorities and Atlanticists have accused Russia of providing military aid and troops to Donbas militias. Moscow has dismissed the allegations and denied any involvement in the armed conflict in Ukraine.