When it gets complicated and confusing, when you’re overwhelmed with too much information, changing daily; too many explanations, some contradictory … try putting it into some kind of context by stepping back and looking at the larger, long-term picture.
The United States strives for world domination, hegemony wherever possible, their main occupation for over a century, it’s what they do for a living. The United States, NATO and the European Union form The Holy Triumvirate. The Holy Triumvirate has subsidiaries, chiefly The International Monetary Fund, World Bank, World Trade Organization, International Criminal Court … all help to keep in line those governments lacking the Holy Triumvirate Seal Of Approval: the IMF, WB, and WTO impose market fundamentalism, while foreign leaders who act too independent are threatened with being handed over to the ICC for heavy punishment, as the United States imposes sanctions on governments and their leaders as only the King of Sanctions can, lacking any sense of hypocrisy or irony.
And who threatens United States domination? Who can challenge The Holy Triumvirate’s hegemony? Only Russia and China, if they were as imperialistic as the Western powers. (No, the Soviet Union wasn’t imperialistic; that was self-defense; Eastern Europe was a highway twice used by the West to invade; tens of millions of Russians killed or wounded.)
Since the end of the Cold War the United States has been surrounding Russia, building one base after another, ceaselessly looking for new ones, including in Ukraine; one missile site after another, with Moscow in range; NATO has grabbed one former Soviet Republic after another. The White House, and the unquestioning American mainstream media, have assured us that such operations have nothing to do with Russia. And Russia has been told the same, much to Moscow’s continuous skepticism. “Look,” said Russian president Vladimir Putin about NATO some years ago, “is this is a military organization? Yes, it’s military. … Is it moving towards our border? It’s moving towards our border. Why?”
The Holy Triumvirate would love to rip Ukraine from the Moscow bosom, evict the Russian Black Sea Fleet, and establish a US military and/or NATO presence on Russia’s border. (In case you were wondering what prompted the Russian military action.) Kiev’s membership in the EU would then not be far off; after which the country could embrace the joys of neo-conservatism, receiving the benefits of the standard privatization-deregulation-austerity package and join Portugal, Ireland, Greece, and Spain as an impoverished orphan of the family; but no price is too great to pay to for being part of glorious Europe and the West!
The Ukrainian insurgents and their Western-power supporters didn’t care who their Ukrainian allies were in carrying out their coup against President Viktor Yanukovych last month … thugs who set policemen on fire head to toe … all manner of extreme right-wingers, including Chechnyan Islamic militants … a deputy of the ultra-right Svoboda Party, part of the new government, who threatens to rebuild Ukraine’s nukes in three to six months. … the snipers firing on the protestors who apparently were not what they appeared to be – A bugged phone conversation between Urmas Paet, the Estonian foreign minister, and EU foreign policy chief Catherine Ashton, reveals Paet saying: “There is now stronger and stronger understanding that behind the snipers it was not Yanukovych, but it was somebody from the new coalition.” … neo-Nazi protestors in Kiev who have openly denounced Jews, hoisting a banner honoring Stepan Bandera, the infamous Ukrainian nationalist who collaborated with the German Nazis during World War II and whose militias participated in atrocities against Jews and Poles.
The Israeli newspaper Haaretz reported on February 24 that Ukrainian Rabbi Moshe Reuven Azman advised “Kiev’s Jews to leave the city and even the country.” Edward Dolinsky, head of an umbrella organization of Ukrainian Jews, described the situation for Ukrainian Jews as “dire” and requested Israel’s help.
All in all a questionable gang of allies for a dubious cause; reminiscent of the Kosovo Liberation Army thugs Washington put into power for an earlier regime change, and has kept in power since 1999.
The now-famous recorded phone conversation between top US State Department official Victoria Nuland and the US ambassador to the Ukraine, wherein they discuss which Ukrainians would be to Washington’s liking in a new government, and which not, is an example of this regime-change mentality. Nuland’s choice, Arseniy Yatseniuk, emerged as interim prime minister.
The National Endowment for Democracy, an agency created by the Reagan administration in 1983 to promote political action and psychological warfare against states not in love with US foreign policy, is Washington’s foremost non-military tool for effecting regime change. The NED website lists 65 projects that it has supported financially in recent years in Ukraine. The descriptions NED gives to the projects don’t reveal the fact that generally their programs impart the basic philosophy that working people and other citizens are best served under a system of free enterprise, class cooperation, collective bargaining, minimal government intervention in the economy, and opposition to socialism in any shape or form. A free-market economy is equated with democracy, reform, and growth; and the merits of foreign investment in their economy are emphasized.
The idea was that the NED would do somewhat overtly what the CIA had been doing covertly for decades, and thus, hopefully, eliminate the stigma associated with CIA covert activities. Allen Weinstein, who helped draft the legislation establishing NED, declared in 1991: “A lot of what we do today was done covertly 25 years ago by the CIA.”
NED, receives virtually all its financing from the US government ($5 billion in total since 1991 ), but it likes to refer to itself as an NGO (Non-governmental organization) because this helps to maintain a certain credibility abroad that an official US government agency might not have. But NGO is the wrong category. NED is a GO. Its long-time intervention in Ukraine is as supra-legal as the Russian military deployment there. Journalist Robert Parry has observed:
For NED and American neocons, Yanukovych’s electoral legitimacy lasted only as long as he accepted European demands for new “trade agreements” and stern economic “reforms” required by the International Monetary Fund. When Yanukovych was negotiating those pacts, he won praise, but when he judged the price too high for Ukraine and opted for a more generous deal from Russia, he immediately became a target for “regime change.”
Thus, we have to ask, as Mr. Putin asked – “Why?” Why has NED been funding 65 projects in one foreign country? Why were Washington officials grooming a replacement for President Yanukovych, legally and democratically elected in 2010, who, in the face of protests, moved elections up so he could have been voted out of office – not thrown out by a mob? Yanukovych made repeated important concessions, including amnesty for those arrested and offering, on January 25, to make two of his adversaries prime minister and deputy prime minister; all to no avail; key elements of the protestors, and those behind them, wanted their putsch.
Carl Gershman, president of NED, wrote last September that “Ukraine is the biggest prize”. The man knows whereof he speaks. He has presided over NED since its beginning, overseeing the Rose Revolution in Georgia (2003), the Orange Revolution in Ukraine (2004), the Cedar Revolution in Lebanon (2005), the Tulip Revolution in Kyrgyzstan (2005), the Green Revolution in Iran (2009), and now Ukraine once again. It’s as if the Cold War never ended.
The current unbridled animosity of the American media toward Putin also reflects an old practice. The United States is so accustomed to world leaders holding their tongue and not voicing criticism of Washington’s policies appropriate to the criminality of those policies, that when a Vladimir Putin comes along and expresses even a relatively mild condemnation he is labeled Public Enemy Number One and his words are accordingly ridiculed or ignored.
On March 2 US Secretary of State John Kerry condemned Russia’s “incredible act of aggression” in Ukraine (Crimea) and threatened economic sanctions. “You just don’t in the 21st century behave in 19th century fashion by invading another country on completely trumped up pre-text.”
Iraq was in the 21st century. Senator John Kerry voted for it. Hypocrisy of this magnitude has to be respected.
POSTSCRIPT: Ukraine’s interim prime minister announced March 7 that he has invited the NATO Council to hold a meeting in Kiev over the recent developments in the country. “I invited the North Atlantic Council to visit Kiev and hold a meeting there,” Arseny Yatsenyuk said during a visit to Brussels, where he met with NATO Secretary General Anders Fogh Rasmussen and EU officials. “We believe that it will strengthen our cooperation.”
- Guardian Weekly (London), June 27, 2001
- RT television (RT.com, Moscow/Washington, DC), March 1, 2014
- Deputy Mikhail Golovko, RT, March 1, 2014
- RT, March 5, 2014, “The EU’s Ukraine policy and moral bankruptcy”; the phone conversation is believed to have taken place February 26.
- NED 2012 Annual Report
- Washington Post, September 22, 1991
- Victoria Nuland, speaking at the National Press Club, Washington, DC, December 13, 2013
- Washington Post, September 26, 2013
- “Face the Nation”, CBS, March 2, 2014
“From the moment the Soviet Union collapsed in 1991, the United States has relentlessly pursued a strategy of encircling Russia, just as it has with other perceived enemies like China and Iran. It has brought 12 countries in central Europe, all of them formerly allied with Moscow, into the NATO alliance. US military power is now directly on Russia’s borders…This crisis is in part the result of a zero-sum calculation that has shaped US policy toward Moscow since the Cold War: Any loss for Russia is an American victory, and anything positive that happens to, for, or in Russia is bad for the United States. This is an approach that intensifies confrontation, rather than soothing it.”
- Stephen Kinzer, “US a full partner in Ukraine debacle”, Boston Globe
“We have removed all of our heavy weapons from the European part of Russia and put them behind the Urals” and “reduced our Armed Forces by 300,000. We have taken several other steps required by the Adapted Conventional Armed Forces Treaty in Europe (ACAF). But what have we seen in response? Eastern Europe is receiving new weapons, two new military bases are being set up in Romania and in Bulgaria, and there are two new missile launch areas — a radar in Czech republic and missile systems in Poland. And we are asking ourselves the question: what is going on? Russia is disarming unilaterally. But if we disarm unilaterally then we would like to see our partners be willing to do the same thing in Europe. On the contrary, Europe is being pumped full of new weapons systems. And of course we cannot help but be concerned.”
- Russian President Vladimir Putin, Munich Conference on Security Policy, February 2007
The Obama administration’s rationale for supporting the fascist-led coup in Ukraine collapsed on Wednesday when a “hacked” phone call between EU foreign affairs chief Catherine Ashton and Estonian foreign minister Urmas Paet revealed that the snipers who fired on protestors in Maidan Square in Kiev were not aligned with President Viktor Yanukovych, but with the protest leaders themselves. The significance of the discovery cannot be overstated since the Obama team has used the killing of protestors to justify its support for the new imposter government. Now it appears that members of the new government may be implicated in the killing of innocent civilians. This new information could force Obama to withdraw his support for the coup plotters in Kiev, which would derail the administration’s plan to remove Russia from the Crimea and expand NATO into Ukraine. Here’s a short recap of the details from an article in Russia Today:
“Estonian foreign ministry has confirmed the recording of his conversation with EU foreign policy chief is authentic. Urmas Paet said that snipers who shot at protesters and police in Kiev were hired by Maidan leaders.
During the conversation, Paet stressed that “there is now stronger and stronger understanding that behind the snipers, it was not Yanukovich, but it was somebody from the new coalition.”….
The Estonian Ministry of Foreign Affairs also issued a statement on its website, saying that the recording of the leaked telephone conversation between Paet and Ashton is “authentic.” (“Estonian Foreign Ministry confirms authenticity of leaked call on Kiev snipers“, Russia Today)
To its credit, the UK Guardian published an article reporting the basic facts, but there’s been no coverage by the New York Times, the Washington Post or any of the major TV News networks. America’s elite media are engaged in a coordinated news blackout to keep people from seeing that the Obama administration and their EU collaborators are supporting a group of far-right extremists who were directly involved in the killing of civilians in order to topple a democratically-elected government. Here’s more from the same article:
“…there is a stronger and stronger understanding that behind snipers it was not Yanukovych, it was somebody from the new coalition,” Paet says…the same handwriting, the same type of bullets, and it’s really disturbing that now the new coalition, that they don’t want to investigate what exactly happened.” (“Ukraine crisis: bugged call reveals conspiracy theory about Kiev snipers“, Guardian)
There won’t be an investigation because an investigation would reveal the truth, and the truth would undermine Obama’s plan to install a puppet regime in Kiev. The new government has already shown that it is more than willing to do Washington’s bidding, that is, to impose austerity measures on the working people of Ukraine, to pay off fatcat bondholders in Berlin and Brussels via more extortionist IMF loans, to extend NATO to Russia’s border in contravention of agreements made with Bush the Elder following the fall of the Berlin Wall, and to pursue the crackpot dreams of global hegemony laid out in “The Grand Chessboard” by New World Order fantasist Zbigniew Brzezinski. These are the primary objectives of the present policy which could be upended by the allegations of foul play.
The smoking gun revelations of the hacked phone call came just hours before US officials indicated they were planning to increase their military footprint in Eastern Europe. According to the World Socialist Web Site:
“Defense Secretary Chuck Hagel said the Pentagon will boost joint training of NATO forces in Poland and step up NATO air patrols in the Baltics…US military officials said they were deploying six F-15 fighter jets and KC-135 transport planes. ….One guided-missile frigate, the USS Taylor, is still in a Black Sea port in Turkey after patrolling the region during the Sochi Olympics…
Turkish officials confirmed that they had given a US Navy warship permission to pass through the Bosphorus straits into the Black Sea, which borders Ukraine.” (“Amid Ukraine crisis, US launches military escalation in Eastern Europe”, World Socialist Web Site)
Also Russia Today reports that: “The guided missile destroyer, the USS Truxton, is heading to the Black Sea, for what the US military said is a “routine” deployment…The ship has a crew of about 300 and is part of an aircraft carrier strike group that left the US in mid-February.” (“US navy confirms missile destroyer USS Truxton approaching the Black Sea”, RT)
“Routine deployment”? So provoking a war with Russia is “routine”? Talk about understatement.
The military escalation occurs in an atmosphere of heightened tension between the two nuclear-armed powers and will certainly add to their mutual distrust. Hagel’s deployment is consistent with a plan for antagonizing Moscow that was proposed just days earlier in the Washington Post by the Obama administration’s ideological godfather, Zbigniew Brzezinski. Here’s a bit of what Brzezinski had to say in the article titled “What is to be done? Putin’s aggression in Ukraine needs a response”:
“…the West should promptly recognize the current government of Ukraine as legitimate. Uncertainty regarding its legal status could tempt Putin to repeat his Crimean charade…
“…the West should convey.. that the Ukrainian army can count on immediate and direct Western aid so as to enhance its defensive capabilities. There should be no doubt left in Putin’s mind that an attack on Ukraine would precipitate a prolonged and costly engagement, and Ukrainians should not fear that they would be left in the lurch.
Meanwhile, NATO forces, consistent with the organization’s contingency planning, should be put on alert. High readiness for some immediate airlift to Europe of U.S. airborne units would be politically and militarily meaningful. If the West wants to avoid a conflict, there should be no ambiguity in the Kremlin as to what might be precipitated by further adventurist use of force in the middle of Europe.” (“What is to be done? Putin’s aggression in Ukraine needs a response”, Washington Post)
“Adventurist”? Dr. Strangelove is calling the Kremlin adventurist when his recommendations would put NATO, the US and Moscow on hairtrigger alert increasing the chances of an error in judgment that could lead to thermonuclear war. Isn’t that the pot calling the kettle black?
But listen to the tone of Brzezinski’s op-ed. In just a few short paragraphs, the author–who many respect as a restrained and brilliant global strategist–refers to Putin as a thug, a Mafia gangster, Mussolini, and Hitler. I imagine if he had another paragraph to work with, he would have added Beelzebub Satan to the list.
This isn’t politics; it’s hysterics. It’s incendiary, jingoistic mumbo-jumbo intended to rouse the public and fan the flames of nationalism. It’s the same kind of self-righteous raving that precipitated the invasion of Iraq.
And what is Brzezinski saying?
Is he saying that events in the Crimea are a threat to US national security? Is he saying that the US should now feel free to apply the Monroe Doctrine everywhere across the planet, sticking our big nose wherever the president sees fit?
The trouble in the Crimea has nothing to do with the United States. We have no dog in this fight. This is about military expansion into Eurasia, this is about pipeline corridors and oil fields, this is about dismantling the Russian Federation and positioning multinational corporations and Wall Street investment banks in Asia for the new century. And, finally, this is an ego-driven crusade by an old man who wants to see his looneybin NWO global hegemony vision enacted before they cart him off on a marble slab. That’s what this is really about; the glorious new world disorder, the dystopian wetdream of thinktank patricians everywhere whose only purpose in life is to initiate wars that other-peoples-sons will have to fight.
Entering Ukraine into the corporate-western alliance is a critical part of Brzezinski’s masterplan. The basic strategy has been underway since the fall of the Berlin Wall when neoliberal carpetbaggers from the US assisted in the looting of the former Soviet state leaving Russia politically broken and economically destitute. Since then, US policy towards Russia has been overtly hostile, making every effort to encircle the oil-rich nation while positioning nuclear missile installations on its perimeter. Now Washington is using its fascist-backed coup in Ukraine to force Moscow to relinquish its grip on a region that is vital to its national security.
Here’s a brief excerpt from an interview with Stephen Cohen, professor of Russian studies and history emeritus at New York University on Monday on PBS Newshour. Cohen helps to clarify what is really going on viv a vis the US and Russia:
“What we’re watching today is the worst kind of history being made, the descent of a new Cold War divide between West and East in Europe, this time not in faraway Berlin, but right on Russia’s borders through Ukraine. That will be instability and the prospect of war for decades to come for our kids and our grandchildren. The official version is that Putin is to blame; he did this. But it simply isn’t true. This began 20 years ago when Clinton began the movement of NATO toward Russia, a movement that’s continued.
…the fundamental issue here is that, three or four years ago, Putin made absolutely clear he had two red lines…One was in the former Soviet republic of Georgia. (Putin would not allow NATO in Georgia) The other was in Ukraine. We crossed both. You got a war in Georgia in 2008, and you have got today in Ukraine because we, the United States and Europe, crossed Putin’s red line.” (PBS News Hour)
There’s no doubt who is to blame for the present conflict in Cohen’s mind. It’s Washington.
So, here we are, between a rock and a hard place: Putin cannot back down on an issue that’s crucial to national security, and Washington is more determined than ever to pull Ukraine into –what Henry Kissinger calls–”a cooperative international system.” (aka–global capitalist rule) That means there’s going to be a war.
On Thursday, Crimea MPs voted unanimously to hold a referendum on whether the region should become a part of Russia or not. The balloting will take place in 10 days although Obama has already said that he will not honor the results. Apparently, other countries need to get the green-light from Washington before they conduct their elections now. This is how ridiculous things have gotten.
In 2008, Brzezinski revealed the real motives behind US aggression in Central Asia in an article that appeared in the Huffington Post that dealt primarily with the dust up in Georgia. (where Putin deployed Russian troops to defend Russian speaking civilians in South Ossetia.) Here’s what Brzezinski had to say:
“The question the international community now confronts is how to respond to a Russia that engages in the blatant use of force with larger imperial designs in mind: to reintegrate the former Soviet space under the Kremlin’s control and to cut Western access to the Caspian Sea and Central Asia by gaining control over the Baku/Ceyhan pipeline that runs through Georgia.
In brief, the stakes are very significant. At stake is access to oil as that resource grows ever more scarce and expensive and how a major power conducts itself in our newly interdependent world, conduct that should be based on accommodation and consensus, not on brute force.
If Georgia is subverted, not only will the West be cut off from the Caspian Sea and Central Asia. We can logically anticipate that Putin, if not resisted, will use the same tactics toward the Ukraine. Putin has already made public threats against Ukraine.” (“Brzezinski: Russia’s invasion of Georgia is Reminiscent of Stalin’s attack on Finland”; Huffington Post)
Huh? It sounds a lot like Brzezinski thinks that oil should be his. Or maybe he thinks it belongs to the western oil giants; is that it?
So we’re not dealing with national security, sovereignty or spheres of influence here. What we’re really talking about is “access to oil.” Not only that, but Brzezinski is being quite blunt in his assertion that “the West” –as he calls it–has a legitimate claim to the resources on other people’s land. Where’d he come up with that one?
In another interview on Kavkacenter.com, in 2008, Brzezinski sounded the same alarm with a slightly different twist. Here’s an excerpt from the article titled ”Russia tends to destabilize Georgia”:
“Brzezinski said the United States witnessed “cases of possible threats by Russia… motivated not by some territorial disputes….but caused by intention to take control over the Baku-Ceyhan pipeline”.
“If Georgia government is destabilized, western access to Baku, Caspian Sea and further will be limited”, said Brzezinski …. he stated that Russia will try to consolidate its monopoly on these markets and will use all existing political and economic levers, including “politically motivated cessation of energy supplies” in Europe and Baltic states.
“Russia actively tends to isolate the Central Asian region from direct access to world economy, especially to energy supplies”, considers the political scientist.” (“Zbigniew Brzezinski: ”Russia tends to destabilize Georgia” kavkacenter.com)
Putin is not isolating anyone and he’s certainly not taking over anyone’s damned pipeline. He’s the president of Russia. He sells oil and makes money, that’s how the system works. It’s called capitalism. But the oil is theirs. The natural gas is theirs. The pipelines are theirs. Not ours. Get over it!
Don’t kid yourself, it’s all about oil. Oil and power. The United States imperial ambitions are thoroughly marinated in oil, access to oil, and control of oil. Without oil, there’s no empire, no dollar hegemony, no overbloated, bullyboy military throwing weaker countries against the wall and extorting tribute. Oil is the coin of the realm, the path to global domination.
Putin has audacity to think that the oil beneath Russian soil belongs to Russia. Washington wants to change his mind about that. And that’s why the situation in Ukraine is so dangerous, because the voracious thirst for oil is pushing us all towards another world war.
The desperation of the Anglo-American leadership, guided by the steady corrupt banker hands, has never been more acutely high, nor obvious in full view. The entire Ukraine situation is a travesty. It includes Langley agents killing police and street demonstrators from rooftops, the confirmation coming from the Estonian Embassy (translation of scripts). It includes thefts of official Ukrainian Govt funds, again sent to the Swiss hill sanctuary. It includes sanctions delivered by a US Paper Tiger, sure to cause horrific backlash. It involves the last gasp attempt to obstruct the Gazprom energy pipelines, which will inevitably corner the European market in monopoly. It involves subterfuge with the NATO card (aka Narcotics And Treachery Outlaws) with missiles placed on the Russian borders. Look for NATO members to find a back door to exit the spurious treaty. It involves playing with nitro-glycerine in the Petro-Dollar room. It involves putting tremendous risk for much more clear isolation of the United States. The more the USGovt pushes, the more the US will be isolated. Remember that Nazis steal from their enemy states, de-fraud from their allied states, and force themselves into an isolated state. In Ukraine, the United States has over-played its weak hand. Already, a secret document was leaked in London that the UKGovt would not support the US-led sanctions against Russia.
History repeats itself from the Kremlin phone calls made during the Syrian conflict just a few months ago, when the UKGovt withdrew its support and left the US isolated, looking very weak. Already, Putin has threatened to dump USTreasury Bonds. Putin aptly calls the Anglo-Americans as Mutants. Imagine the lunacy of trying to cut off the only Russian warm water military naval port in the Crimea. Just as stupid as the Trans Pacific Partnership faux pas, trying to cut off China from its Asian neighbors and partners in trade. The intelligence level of the USGovt has never been more stupid, destructive, and in full view. The lost ground for the United States is obvious and glaring in the Persian Gulf, the Mediterranean Sea, and the Caucasus region.
IMMEDIATE PETRO-DOLLAR RISK
If the Kremlin demands Gold bullion (or even Russian Rubles) for oil payments, then the interventions to subvert the Ruble currency by the London and Wall Street houses will backfire and blow up in the bankster faces. Expect any surplus Rubles would be converted quickly to Gold bullion. If the Chinese demand that they are permitted to pay for oil shipments in Yuan currency, then the entire Petro-Dollar platform will be subjected to sledge hammers and wrecking balls. The new Petro-Yuan defacto standard will have been launched from the Shanghai outpost. If the Saudis curry favor to the Russians and Chinese by accepting non-USDollar payments for oil shipments, then the Petro-Dollar is dead and buried. The rise of the Nat Gas Coop run by Gazprom is in progress, its gas pipelines to strangle the OPEC and its bastard Petro-Dollar child. The entire USDollar foundation with the USTreasury Bond bank reserve structure is at risk is collapsing, as consequence to the desperate adventure and criminal activity conducted in Ukraine.Just like with Syria, a hidden giant energy deposit is concealed under the table. Off the Lebanese and Syrian coast, a massive off-shore energy deposit was recently discovered. The US & UK & Israeli oligarchs wish to take it all. Confusion is their game. In the western plains of Ukraine, a massive gas deposit was recently discovered. The US & European oligarchs wish to take it all. Confusion is their game.
The danger level has never been higher. No resolution to the Global Monetary War can come, which we have been seeking, without a climax. It is hardly just a financial crisis amidst a stubborn economic recovery. The nature of the currencies and their underlying sovereign bond foundation is highly toxic, which requires a strong replacement as solution, using an alternative to the USDollar alongside its reserve ledger item the USTreasury Bond. A return to the Gold Standard is coming, but the birth will have loud pangs and possibly broad damage suffered. The Global Currency Reset is better named the Return to the Gold Standard. The United States and London will not give up their control of the Weimar Printing Press easily, used for elite self-dole of extreme wealth. It has served well as the Elite credit card. They will not go quietly, and assume their place in the backwater without taking the world to the brink. No climax can occur without enormous risk and loss. The Global Paradigm Shift is in full gear, with attendant risk huge here and now. My Jackass firm belief is that the US/UK fascist team face a Waterloo event in Ukraine, the victim to be the Imperial Dollar. This bulletin will not be a comprehensive note, as the situation is too vast. The information in the Hat Trick Letter is used to interweave a story of the impending removal of the USDollar from its corrupt throne.
UNITED STATES TRAPPED AND CORNERED
The Anglo Americans have fallen into a carefully designed trap by the Russians and Chinese in a clever designed sequence. More Sun Tzu tactics have been put into practice, which utilize the momentum from the enemy to be thrust back on them. Planning for final steps must have taken place during high level Putin meetings with Xi from the elite Sochi viewing box. The unfolding of events has been more carefully engineered and orchestrated than what appears. The US/UK team has been caught in a vise for months, as the rejection of the USDollar as global reserve currency is in high gear, the refusal of the USTBond a recognized trend in diversifications. The death process is slow and grueling. Much of the American Hemisphere is surrounded and controlled by Russia & China, whether the canal, the port facilities, the oil supply, the mineral deposits, even Yuan Swap facilities. Africa has largely gone under Chinese control, with Russia playing a hidden role as well.
The Persian Gulf is in transition, with the critical protectorate role shifting to China. The Qatar royals have just ordered a dismissal of USGovt ambassadors from their nation. Note that Qatar is the site of a giant USNaval base. To be sure, the Sochi Olympic Games are over, a successful event. The gloves have thus come off. The risks have reached acute levels. The US leadership seems cavalier to the risks that over half the USGovt debt is in foreign hands, over 30% of it in Russian & Chinese hands. A severe backlash cometh. The most vulnerable player in the room is the most aggressive, arrogant, vile, and obnoxious. The instability of the situation is far beyond acute. The victim will be the USDollar and its sidekick the USTreasury Bond. The USTBonds will be kicked out of the global banking system. The Third World awaits the United States, for its domestic betrayals, its financial failures, its criminal deeds, and its war aggression.
THE RUSSIAN BACKLASH TO BE SUDDEN
Russian President Vladimir Putin will slam the West, and very soon. The initial salvo might be a natural gas cutoff by Gazprom, the Russian giant which has fast moved into the global monopoly position. Eventually, Putin might demand gold payment for the natgas in the captured pipelines, that being the plan according to The Voice. Russia supplies one quarter of Western European gas needs. It will be the opening salvo for Gold Trade Settlement, for which the Iran workarounds to the sanctions provided the critical prototype. Combined with a formal announcement of USTreasury Bond sales in volume by Russia & China, the impact would be tremendous, even devastating. The reverberation will be soon seen as the pending demise of the defacto Petro-Dollar Standard, dictated by crude oil sales in USD terms. It will also be soon seen as the end of the USTBond as the global reserve standard in banking systems. Notice for over two years, the primary buyer of USGovt debt (and its refunded rollover) has been the US Federal Reserve via bond monetization, an absolute heresy to central banking. Hyper monetary inflation cannot stand as fixed policy. The world has responded by constructing an alternative to trade settlement. The forum has been the BRICS conferences and the G-20 Meetings of finance ministers. The US & UK will gradually be excluded from both forums, a process well along. Even traditional allies like Japan are buying gold in high volume, with suppressed lowball data so far. This is game over for the USDollar, the direct victim of Ukraine backlash. The war against Russia has been veiled, but the Jackass has exposed it.
VEILED ATTACKS AGAINST RUSSIAN GAZPROM
First was the attack against Russian Gazprom in Cyprus. It was a hidden attack made to look like a bank confiscation event. Notice no bank account confiscations outside the small but important island nation. The entire Russian banking clearance system had been done through Cyprus. Also, Russia was making significant transactions to purchase Gold bullion using Cyprus as clearing house for the purchases. Second was the attack against Russian Gazprom in Syria, another complicated event. The US had used the Libyan Embassy as a weapons running facility (major diplomatic violation), after which the US lost Egypt as a transfer station on the weapons running. The false flag attack in Syria was made to look like a chemical weapons event. However, the Saudis were the guilty party. The motive by the US was to block the advance of Russian Gazprom pipelines, which are to connect to the vast Iran supply centers. Iran has far more oil & gas than Iraq. In fact, Iran is the linchpin nation, which will throw its support toward Russia. Iran will push the Nat Gas Coop certain to eclipse Saudi Arabia and the loud gaggle of OPEC members. With the Russian Gazprom, together Iran and the Nat Gas Coop will usher in the Petro-Yuan Standard and bury the Petro-Dollar, the price set by Russia, the contracts set in Shanghai. Thus the Saudis will be expendable, and their Gold in London to be totally stolen.
Move to the present. Third was the attack against Russia Gazprom in Ukraine, done by the CIA and its partner security agents from the small ally nation on the SouthEast Med corner. The old game of destabilization, popular uprising, bank thefts, and now data files stolen has been put into action. The theft of significant funds in Ukraine has only started, funds gone to Swiss banks. The full betrayal will be seen soon. The US & UK have a lunatic plan to corral the Ukraine pipelines and possibly the vast farmlands of Ukraine. The wrong-footed plan will backfire, when Putin cuts off the natgas supply to Europe, when Putin demands a new type of energy supply payment structure, and when Putin engineers certain other steps. They might execute a Nat Gas Coop double in price, much like the OPEC event in 1973. Witness the upcoming Birth of the Eurasian Trade Zone, the birth pangs heard in Ukraine. The United States and Great Britain will not be included. The Eurasian Trade Zone will span 14 time zones and will settle in gold.
IRAN WORKAROUND AS KEY PROTOTYPE SOLUTION
The Anglo Americans have disrupted a key nation with longstanding historical and religious ties to Russia. The land of Ukraine also contains Russia’s only warm water naval port in the Crimea, the site of a recent suspicious earthquake. The response will be swift and firm. The Eastern nations (led by China & Russia) have been making detailed preparations in the last couple years to launch the alternative trade system founded in Gold Settlement. Its launch lacks a potential open door trigger, possibly offered by the Ukraine situation. The Gold Standard could return in a baptism by fire. The open door trigger appears to be the Western interventions into Ukraine, since the Western banking structures will not be permitted to collapse, the ugly reality. The abuse of the central bank monetary expansion and fraudulent bond redemption has gone totally out of control, forcing an endless cycle of alternative preparations and motivated reactions, including the Iran workaround with Turkey as intermediary in gold provision. Other attacks have taken place in the last few months against the Russian Ruble by Wall Street firms. The reaction will possibly be the launch of what could eventually be understood to be a gold-backed Ruble currency, combined with natgas cutoffs to Europe and USTBond dumps. At first it could be perceived as the oil-backed Ruble, but its quick hidden conversion to Gold bullion could be revealed later on. The USDollar will be discarded as obsolete, even toxic. The USDollar debt basis might be widely accepted to be the cause of the global financial crisis, and the USFed Quantitative Easing be widely understood to be the cause of the global financial collapse.
EUROPE AS KEY REGION TO TIP EASTWARD
Events inside Western Europe could unfold rapidly. Behind the scenes, much is happening. The important German-French Axis is breaking down, weakened by each passing month and bailout exercise. The motive for much of the German support of bailouts and rescue plans, as faulty as they have been, is the oversized German ownership of both French Govt debt and big French banks. They will fail, both the French sovereign debt and the big French banks. Germany must undergo a split, with a restructure from the devastating damage due to Southern European sovereign debt and related big bank losses. At the same time, Germany is on the verge of turning East to Russia. Already Russia is a large energy and mineral supplier to Germany, the heavy railway facilities in place. The core of Nordic Europe is firm. Austria and Finland are aligned with the pragmatic forces in Germany and the Netherlands. Italy is being transformed, but Spain might be lost to chaos. Turkey is also undergoing change during chaotic reform. The entire NATO Alliance has never been weaker. The military action in Ukraine is framed as a supposed NATO exercise to honor a treaty. Watch the loose end like Turkey fall off the NATO wagon, while Finland falls off the Euro currency wagon. The Jackass is eager to see the Snowden NSA files reveal key data on the illicit usage of NATO bases for narcotics distribution, the origin being Afghanistan. What a bombshell it would be if Turkey announced that their government would no longer permit heroin shipments from USMilitary aircraft on their Incirlik Airbase.
A key player in the mix is Israel. They have a Tamar floating platform, whose natgas has been pledged under contract to Russian Gazprom. The tiny nation is possibly changing its alliances out of pragmatism, seeing its drained weakened host that has duly served its purpose. The next big step is for Western Ukraine to suffer the drain of remaining resources (financial and agricultural) to the West, using all the diplomatic tools the Euro Elite can muster. The people in the East will realize that they have been betrayed once more by the Western powers. This is the critical final step. Several swing nations will consequently align with Germany, if only to make being integrated by Russia less painful. During all the transitions, China will take care of Asia in this game. The remaining overriding question is whether the US & Britain will go quietly in the night of faded empires, or else to wreck the world with nukes and viruses. The main exports out of the United States and its royal handlers have been fraudulent bonds, military hardware, genetically modified food, fast food with diabetes, pharmaceuticals, surveillance software, computer viruses, and jamming software technology. Such is the nature of the fascist transformation.
RUSSIA CANNOT BE ISOLATED
The West is in for a gigantic surprise in the sequence of events to unfold. They have placed criminal oligarchs into top government positions in Ukraine. Doing so might suit the West but not the Ukrainian people. The political brain trust in Berlin shows extremely errant strategy, still kowtowing to the USGovt and London Elite in an incomprehensible manner. The West cannot isolate Russia, which is the latest absurd bone-headed strategy. They need Russia in vital ways that will become apparent when the West faces energy supply cutoff or forced Gold payments during an open global USDollar rejection. The US will quickly feel the lost Petro-Dollar gear mechanisms. China has already aligned itself beside Russia, which makes isolation impossible. Consider the Russian commodity supply and Chinese industrial power, the new axis to the Eurasian Trade Zone.
The West cannot continue to bully Russia & China. Poking a stick in the bear’s face will not work for long. Disrespecting the Chinese creditor is deep folly. The risk that coincides is for the two Asian superpowers to threaten or actually execute a dumping initiative of USTreasury Bonds, and force the United States to use its last card in a grotesque display of hugely amplified monetary expansion. The US would collapse by falling on its own sword, the event occurring in the Weimar chamber. A super high volume bond monetization machine to cover globally dumped USTBonds is a strong likelihood as climax event, with a broken derivative mechanism that is revealed during its fracture. The London banker murders (another Jackass correct forecast, made in mid-2011) indicate a motive to keep covered up the extreme $100 billion JPMorgan derivative losses at the hands of the London Whale Bruno Iksil, first sighted in May 2012. The accelerated hyper monetary inflation in response to Russian & Chinese joint retaliation would finally kill the USDollar. The echo event, born from failure, would be for the USGovt to launch the new split Scheiss Dollar. Then the USGovt could have its domestic currency finally, and then wreck it with an assured painful sequence of devaluations. The fundamentals for the US domestic only currency are truly horrible, typical of a Third World nation. Ukraine is about the last gasp of the USDollar. It has no viable defense.
UKRAINE AS WATERLOO FOR THE US DOLLAR
Ukraine is the Waterloo event for Team Obama and the Wall Street handlers, the true controllers of the White House puppet. Ukraine will lead to wreckage to the USDollar and its USTBond partner in crime. Witness the death of the USDollar and the Birth of both the Gold Trade Standard, on the new Eurasian Trade Zone landscape. Neither Russia nor China will cooperate on the IMF super sovereign reformed currency basket at this point, not during extreme hostility and conflict. Hope and pray for cooler heads to prevail, since already many serious military attacks have occurred with advanced weapons off the Syrian coast. The Western Press prefers to frame the Ukraine situation as one more curious Orange Revolution event staged in Eastern Europe, akin to the other deceptive Arab Spring events. The old Soviet Union was trapped years ago, forced to use hyper monetary inflation in defense, as the nation imploded financially. The United States is now trapped in an ironic parallel manner, and will be exposed for its heretic inflationary response that ramps up to obscene volumes, followed by financial implosion. In fact, the events from here onward are the final hurrah for the USDollar regime and the criminal cabal.
Now has never been a better time to own a big stack of gold & silver coins & bars, stored in a secure place outside the United States, outside England, outside Switzerland, even outside Canada. The people must defend against a climax of systemic failure, led by arrogance, stupidity, desperation, and delusion, even armed aggression. It remains to be seen whether the Kremlin has some secret allies who might emerge in time, from other worlds. But that is an entire other story to be told someday maybe. We earthlings will all find out soon enough. Times are changing fast, and better to be alert than to get hurt. The Global Currency Reset lies directly ahead, complete with its doubled Gold price and doubled Silver price. The Russians & Chinese are motivated to respond to a military prod, poke, and nudge by delivering a financial response. The rejection of the USDollar is near. The rapid diversification away from the USTreasury Bond is near. The arrival of the new Global Gold Standard is imminent.
When one studies history, all events seem to revolve around the applications and degenerations of war. Great feats of human understanding, realization and enlightenment barely register in the mental footnotes of the average person. War is what we remember, idealize and aggrandize, which is why war is the tool most often exploited by oligarchy to distract the masses while it centralizes power.
With the exception of a few revolutions, most wars are instigated and controlled by financial elites, manipulating governments on both sides of the game to produce a preconceived result. The rise of National Socialism in Germany, for instance, was largely funded by corporate entities based in the U.S., including Rockefeller giant Standard Oil, JPMorgan and even IBM, which built the collating machines specifically used to organize Nazi extermination camps, the same machines IBM representatives serviced on site at places like Auschwitz. As a public figure, Adolf Hitler was considered a joke by most people in German society, until, of course, the Nazi Party received incredible levels of corporate investment. This aid was most evident in what came to be known as the Keppler Fund created through the Keppler Circle, a group of interests with contacts largely based in the U.S.
George W. Bush’s grandfather, Prescott Bush, used his position as director of the New York-based Union Banking Corporation to launder money for the Third Reich throughout the war. After being exposed and charged for trading with the enemy, the case against Bush magically disappeared in a puff of smoke, and the Bush family went on to become one of the most powerful political forces in America.
Without the aid of international conglomerates and banks, the Third Reich would have never risen to power.
The rise of communism in Russia through the Bolshevik Revolution was no different. As outlined in Professor Antony Sutton’s book Wall Street And The Bolshevik Revolution with vast detail and irrefutable supporting evidence, it was globalist financiers that created the social petri dish in which the communist takeover flourished. The same financiers that aided the Nazis…
The two sides, National Socialism and communism, were essentially identical despotic governmental structures conjured by the same group of elites. These two sides, these two fraudulent ideologies, were then pitted against each other in an engineered conflict that we now call World War II, resulting in an estimated 48 million casualties globally and the ultimate formation of the United Nations, a precursor to world government.
Every major international crisis for the past century or more has ended with an even greater consolidation of world power into the hands of the few, and this is no accident.
When I discuss the concept of the false left/right paradigm with people, especially those in the liberty movement, I often see a light turn on, a moment of awareness in their faces. Many of us understand the con game because we live it day to day. We see past the superficial rhetoric of Republican and Democratic party leadership and take note of their numerous similarities, including foreign policy, domestic defense policy and economic policy. The voting records of the major players in both parties are almost identical. One is hard-pressed to find much difference in ideology between Bush and Barack Obama, for example; or Obama and John McCain; or Obama and Mitt Romney, for that matter.
When I suggest, however, that similar false paradigms are used between two apparently opposed nations, the light fades, and people are left dumbstruck. Despite the fact that globalist financiers shoveled capital into the U.S., British, German and Soviet military complexes all at the same time during World War II, many Americans do not want to believe that such a thing could be happening today.
In response, I present the crisis in Ukraine versus the crisis in Syria…
Ukraine Versus Syria
It seems as though much of the public has already forgotten that at the end of 2013, the U.S. came within a razor’s edge of economic disaster — not to mention the possibility of World War III. The war drums in Washington were thundering for “intervention” in Syria and the overthrow of Bashar Assad. The only thing that saved us, I believe, were the tireless efforts of the independent media in exposing the darker motives behind the Syrian insurgency and the bloodlust of the Obama Administration. The problem is that when the elites lose one avenue toward war and distraction, they have a tendency to simply create another. Eventually, the public is so overwhelmed by multiple trigger points and political powder kegs that they lose track of reality. I often call this the “scattergun effect.”
The crisis in the Ukraine is almost a carbon copy of the civil war in Syria, culminating in what I believe to be the exact same intent.
Money from globalist centers has been flowing into the Ukrainian opposition since at least 2004, when the Carnegie Foundation was caught filtering funds to anti-Russian political candidate Viktor Yushchenko, as well as to the groups who supported him.
The Ukrainian Supreme Court called for a runoff due to massive voter fraud and the rise of the pro-Western Orange Revolution, determining the winner to be Yushchenko over none other than Viktor Yanukovych. Yanukovych went on to win the 2010 elections, and the revolution returned to oust him this year.
It has been discovered that the current revolution has also been receiving funds from NATO and U.S. interests, not just from the State Department, but also from billionaires like Pierre Omidyar, the chairman of eBay and the new boss of journalist Glen Greenwald, the same journalist who is now famous for being the first to expose National Security Agency documents obtained by Edward Snowden.
Much of the monetary support from such financiers was being funneled to men like Oleh Rybachuk, the right-hand man to Yanukovych during the Orange Revolution and a favorite of neoconservatives and the State Department in the U.S.
The International Monetary Fund has also jumped at the chance to throw money at the new Ukrainian regime, which would prevent default of the country and allow the opposition movement to focus their attentions on Russia.
The revolution in Syria was also primarily driven by Western funds and arms transferred through training grounds like Benghazi, Libya. There is much evidence to suggest that theattack on the U.S. consulate in Benghazi was designed to possibly cover up the arming of Syrian rebels by the CIA, who had agents on the ground who still have not been allowed to testify in front of Congress.
After this conspiracy was exposed in the mainstream, globalist-controlled governments decided to openly supply money and weapons to the Syrian insurgency, instead of ending the subterfuge.
Some revolutions are quite real in their intent and motivations. But many either become co-opted by elites through financing, or they are created from thin air from the very beginning. Usually, the rebellions that are completely fabricated tend to lean toward extreme zealotry.
The Syrian insurgency is rife with, if not entirely dominated by, men associated with al-Qaida. Governments in the U.S. and Israel continue to support the insurgency despite their open affiliation with a group that is supposedly our greatest enemy. Syrian insurgents have been recorded committing numerous atrocities, including mass execution, the torture of civilians and even the cannibalism of human organs.
The revolution in Ukraine is run primarily by the Svoboda Party, a National Socialist (fascist) organization headed by Oleh Tyahnybok. Here is a photo of Tyahnybok giving a familiar salute:
So far, the opposition in Ukraine has been mostly careful in avoiding the same insane displays of random violence that plagued the Syrians’ public image. It is important to remember though that mainstream outlets like Reuters went far out of their way in attempts to humanize Syrian al-Qaida. Their methods were exposed only through the vigilance of the independent media. With the fascist Svoboda in power in the Ukraine, I believe it is only a matter of time before we see video reports of similar atrocities, giving Russia a perfect rationalization to use military force.
I am now thoroughly convinced that John McCain is a pasty ghoul of the highest order. He claims to be conservative yet supports almost every action of the Obama Administration. He is constantly defending anti-Constitutional actions by the Federal government, including the Enemy Belligerents Act, which was eventually melded into the National Defense Authorization Act; NSA surveillance of U.S. citizens; and even gun control.
And for some reason, the guy makes appearances like clockwork right before or during major overthrows of existing governments. McCain was in Libya during the coup against Moammar Gadhafi.
McCain showed up to essentially buy off the rebels in Tunisia.
McCain hung out with al-Qaida in Syria.
And, what a surprise, McCain met with the Ukrainian opposition movement just before the overthrow of Viktor Yanukovych. Here is a photo of McCain giving a speech to the opposition with none other than Neo-Nazi Oleh Tyahnybok standing over his left shoulder.
Why McCain? I have no idea. All I know is, if this guy shows up in your country, take cover.
Russia In The Middle
The great danger in Syria was not necessarily the chance of war with Assad. Rather, it was the chance that a war with Assad would expand into a larger conflagration with Iran and Russia. Russia’s only naval facility in the Mideast is on the coast of Tartus in Syria, and Russia has long-standing economic and political ties to Syria and Iran. Any physical action by the West in the region would have elicited a response from Vladimir Putin. The mainstream argument claims that the threat of Russian intervention scared off Obama, but I believe the only reason war actions were not executed by the White House and the globalists was because they didn’t have even minimal support from the general public. For any war, you need at least a moderate percentage of the population to back your play.
In Ukraine, we find the globalists creating tensions between the West and the East yet again. Russia’s most vital naval base sits in Crimea, an autonomous state tethered to the Ukrainian mainland. Currently, Russia has flooded Crimea with troops in response to the regime change in Ukraine. The new Ukrainian government (backed by NATO) has called this an “invasion” and an act of war, while Western warmongers like McCain and Lindsay Graham spread the propaganda meme that Russia made such a move only because Putin believes the Obama Administration to be “weak.”
Clearly, the idea here is to engineer either high tensions or eventual war between Russia and the United States. Syria failed to produce the desired outcome, so the Ukraine was tapped instead.
Energy Markets And The Dollar At Risk
In Syria, any U.S. led military action would have resulted in the immediate closing of the Straight of Hormuz by Iran, threatening to obstruct up to 30% of global petroleum shipments. Foreign resentment could have easily led to the abandonment of the U.S. dollar as the petro-currency. Both China and Russia implied the possibility of an economic response to American intervention, though they did not officially go into specifics. In all likelihood, the dollar’s world reserve status would have been damaged irrevocably.
In the Ukraine, the chance of intervention has been countered with VERY specific threats from Russia, including a freeze on natural gas imports to the European Union through Gazprom, which supplies approximately 30% of the EU’s fuel. In 2009, a temporary Ukranian pipeline closure led to widespread shortages across Europe. While some in the mainstream claim that Russia’s influence over EU energy has “diminished” the fact is a loss of 30% of natural gas reserves for an extended period would inflate energy prices wildly and cripple the EU’s economy.
Another specific reaction given by Russia is the dumping of U.S. treasury bonds. Russia’s bond holdings may not seem like much leverage, except for the fact that China has now publicly backed Russian efforts in the Ukraine, just as they backed Russian opposition to U.S. activities in Syria. A dump of bonds by Russia would invariably be followed by a Chinese dump as well. In fact, China and Russia have been setting the stage for a global dollar decoupling since at least 2008. I have been warning for years that globalists and central bankers needed a “cover event”, a distraction or scapegoat imposing enough to provide a veil of chaos in which they could then destroy the greenback as the world reserve and usher in a global currency system. The Ukraine crisis offers yet another opportunity for this plan to unfold.
The False Paradigm And The Globalist Chessboard
So far, I have outlined what appears to be a correspondence of conspiracy between Syria and the Ukraine and how each event has the continued potential to trigger regional conflict, dollar collapse, or world war. But is this conspiracy one-sided? Are only the West and NATO being manipulated by globalists to box in Russia and provoke a conflict? And what do globalists have to gain by sparking such disaster?
As with every other catastrophic fabricated war, the goal is the erasure of sovereign identity while consolidating of economic, political and social power. It is not enough that global financiers dominate the banking industry and own most politicians; they want to transform the public psyche. They want US to ask THEM for global governance. This manufacture of consent is often achieved by pitting two controlled governments against each other and then, in the wake of the tragedy, calling for global unification. The argument is always presented that if we simply abandoned the concept of nation states and reform under a single world body, all war would “disappear.”
The question is whether Russia’s Putin is aware of the plan. Is he a part of it? Are we seeing repeat theater of a puppet Russia versus a puppet NATO like that witnessed during the Cold War?
What I do know is that Putin has, a number of times in the past, called for global control of the economy through the IMF and the institution of a new global currency using the IMF’s Special Drawing Rights (SDR).
Loans from the IMF are what saved Russia from debt default in the late 1990s. And Putin has recently called for consultations with the IMF concerning Crimea. Remember, this is the same IMF that is working to fund his opponents in Western Ukraine.
Bottom line, if you believe in national sovereignty and decentralization of power, Putin is NOT your buddy. Once again, we have the globalists injecting money into both sides of a conflict which could morph into something nightmarish. Putin wants global economic governance and consolidation under the IMF just as much as the supposedly “American-run” IMF wants consolidation. Global governance of finance and money creation ultimately means global governance of everything else.
Is a war being created through the false paradigm of East versus West in order to pave the road for global government? Are East/West tensions being exploited as a smokescreen for the final destruction of the dollar’s world reserve status? It is hard to say if the Ukraine will be the final trigger; however, the evidence suggests that if a conflict occurs, regardless of who “wins” such a scenario, the IMF comes out on top.
Imagine you are playing a game of chess by yourself. Which side wins at the end of that game: black or white? The answer is it doesn’t matter. You always win when you control both sides.
Source: Brandon Smith | Alt-Market
Their al Qaeda terrorists soundly defeated by Hezbollah forces in Syria, the City of London Illuminati banksters have turned their sights on resource-rich Ukraine. They knew Russian President Vladimir Putin would be distracted by the Sochi Olympics, along with the barrage of threats and propaganda being hurled his way by these demonic Zio-fascists and their Western media lapdogs.
With unlimited time and money at their disposal, this is the bankster modus operandi. They attack where they see opportunity, retreat when defeated, then attack another sector of the planet within days based on vulnerability and resources.
Ukraine declared independence from the old Soviet Union in 1990. In 2004-2005 Western NGOs worked with CIA/Mossad/MI6 assets to stage the phony Orange Revolution. Victor Yuschenko became Prime Minister but was poisoned during the campaign. Western media blamed it on the Russians, but it was likely a Mossad operation since he was succeeded by more bankster-friendly right-wing billionaire Yulia Tymoshenko.
Tymoshenko had co-led the Orange Revolution and is one of Ukraine’s richest people. In 2005 Forbes named her the third most powerful woman in the world. In 2007 she traveled to the US to meet with Vice-President Dick Cheney and National Security Advisor Condaleeza Rice to talk energy. Tymoshenko became rich as an executive at a natural gas company.
Ukraine was being plugged into Cheney’s crooked Energy Policy Task Force, which opened the planet to unregulated oil & gas exploration, including fracking. Tymoshenko privatized over 300 state industries during her reign,
But the Ukrainian people smelled a rat.
In 2010 they voted in Prime Minister Viktor Yanukovych with 48% of the vote. His Party of Regions again defeated Tymoshenko’s Fatherland Party in parliamentary elections of 2012.
Tymoshenko was convicted of embezzlement of state funds and abuse of power. She was given a seven year prison sentence and fined $188 million. The crimes occurred in the natural gas sector.
Two weeks ago Tymoshenko was released from prison as part of a deal hatched at a secret meeting between Yanukovych, EU, NATO and Russian officials first reported by William Engdahl in an article for Veterans Today. Soon after her release all hell broke loose.
Mossad’s Fascist Friends
On February 22nd snipers opened fire from rooftops on Kiev’s square. Engdahl says these snipers were members of a far-right fascist terror cell known as Ukrainian National Assembly – Ukrainian People’s Self Defense (UNA-UNSO).
Led by Andriy Shkil, the group has ties to the neo-Nazi German National Democratic Party. According the Engdahl’s intelligence sources UNA-UNSO is part of a secret NATO Gladio cell and was involved in conflicts ranging from Georgia to Kosovo to Chechnya as part of a strategy of tension aimed at Russia.
Shkil also has direct ties to Tymoshenko, as does newly installed Prime Minster Oleksandr Turchynov, a Baptist preacher and former Tymoshenko advisor who took over after Yanukovych fled under threat to his life to Russia.
In 2006 state prosecutors opened a criminal case against Turchynov, who was accused of destroying files which showed Tymoshenko’s ties to organized crime boss Semion Mogilevich. With Turchynov as Prime Minister Ukraine is now under the thumb of fascist organized criminals known collectively as Right Sector.
It came as no surprise then, when Press TV reported that both Haaretz and the Times of Israel openly bragged of how a group of “former” Israeli soldiers known as the Blue Helmets of the Maidan had led the “protesters” in Kiev’s square under the leadership of a man code-named Delta. According to Paul Craig Roberts, these “protestors” were also being paid by the EU and US.
A Mossad coup brought Right Sector to power, pushing aside more moderate voices being funded and backed by the US, as revealed in the now-infamous YouTube video showing Assistant Secretary of State Victoria Nuland discussing with US Ambassador to Ukraine Geoffrey Pyatt (both Israeli assets within the State Department) who they would want to install as Ukrainian Prime Minster once they got rid of Yanukovych.
A Resource Grab
As usual this Rothschild-led bankster putsch is all about resources. Ukraine lies in a highly strategic geographic location, fronting both the Black Sea and the Sea of Azov. Ukraine is the bread basket of the Eastern Hemisphere. In 2011 it was the world’s 3rd largest grain exporter. It ranks in the top 10 countries in the world for sought-after farmland.
Ukraine has the 2nd largest military in Europe after Russia and the NATO Rothschild tool would love nothing better than to run out theRussian Black Sea Fleet at Sevastopol – a symbol of Russian naval power since the 18th century.
Ukraine has vast natural gas deposits, an advanced industrial base and is a highly strategic crossroads for oil & gas pipelines connecting Four Horsemen Caspian Sea energy fields with European consumers. In 2009 a dispute between Putin and Tymoshenko over Russia’s trans-Ukrainian gas supplies caused a huge spike in gas prices in Europe.
In October 2013 the IMF met with Ukrainian officials to discuss the country’s alleged “budget crisis”. The bankster enforcer arm demanded that Ukraine double consumer prices for natural gas and electricity, devalue its currency, slash state funding for schools and the elderly, and lift a ban on the sale of its rich farmland to foreigners. In return for this Ukraine was promised a measly $4 billion.
Yanukovych told the IMF to take a hike and Russia soon stepped in promising cheaper energy and stating it would buy $15 billion in Ukrainian bonds. Yanukovych was now on the bankster hit list, and the rest is history.
Russia has responded to the Ukrainian coup by sending troops into the Crimea to protect its mostly Russian-speaking population and the Black Sea Fleet. It was here 160 years ago where Catherine the Great launched a major campaign to seize the Crimea from Ottoman sultans.
During WWII ethnic Tatars in Crimea collaborated with Hitler in seizing the region briefly, before Stalin routed them and expelled the Tatar separatists. Many have since returned.
As this drama unfolds, look for the banksters’ Western media tool to make up some “humanitarian crisis” involving the Tatars. There will be more trouble in Crimea.
But the Russians have responded swiftly, as has the alternative media. It ain’t like the good old days, where bankster coups went unquestioned and unnoticed. The Ukrainian people will not stand for these fascists for long either. They saw the empty promises brought forth by the last bankster “event”- the Orange Revolution. They have experience in the field.
The demonic City of London Illuminati banksters may have unlimited time and money. But the people are awakening. The human spirit has unlimited potential. We are much closer to the beginning of this story than to the end.
Dean Henderson is the author of four books: Big Oil & Their Bankers in the Persian Gulf: Four Horsemen, Eight Families & Their Global Intelligence, Narcotics & Terror Network, The Grateful Unrich: Revolution in 50 Countries, Stickin’ it to the Matrix, Das Kartell der Federal Reserve and The Federal Reserve Cartel.
Source: Dean Henderson
The events in Ukraine since November 2013 are so astonishing as almost to defy belief.
An legitimately-elected (said by all international monitors) Ukrainian President, Viktor Yanukovich, has been driven from office, forced to flee as a war criminal after more than three months of violent protest and terrorist killings by so-called opposition.
His “crime” according to protest leaders was that he rejected an EU offer of a vaguely-defined associate EU membership that offered little to Ukraine in favor of a concrete deal with Russia that gave immediate €15 billion debt relief and a huge reduction in Russian gas import prices. Washington at that point went into high gear and the result today is catastrophe.
A secretive neo-nazi military organization reported linked to NATO played a decisive role in targeted sniper attacks and violence that led to the collapse of the elected government.
But the West is not finished with destroying Ukraine. Now comes the IMF with severe conditionalities as prerequisite to any Western financial help.
After the famous leaked phone call of US Assistant Secretary of State Victoria Nuland (photo, left) with the US Ambassador in Kiev, where she discussed the details of who she wanted in a new coalition government in Kiev, and where she rejected the EU solutions with her “Fuck the EU” comment, the EU went it alone. Germany’s Foreign Minister, Frank-Walter Steinmeier proposed that he and his French counterpart, Laurent Fabius, fly to Kiev and try to reach a resolution of the violence before escalation. Polish Foreign Minister, Radoslaw Sikorski was asked to join. The talks in Kiev included the EU delegation, Yanukovich, the three opposition leaders and a Russian representative. The USA was not invited.
The EU intervention without Washington was extraordinary and reveals the deeping division between the two in recent months. In effect it was the EU saying to the US State Department, “F*** the US,” we will end this ourselves.
After hard talks, all major parties including the majority of protesters, agreed to new presidential elections in December, return to the 2004 Constitution and release of Julia Tymoshenko from prison. The compromise appeared to end the months long chaos and give a way out for all major players.
The diplomatic compromise lasted less than twelve hours. Then all hell broke loose.
Snipers began shooting into the crowd on February 22 in Maidan or Independence Square. Panic ensued and riot police retreated in panic according to eyewitnesses. The opposition leaderVitali Klitschko withdrew from the deal, no reason given. Yanukovich fled Kiev.
The question unanswered until now is who deployed the snipers? According to veteran US intelligence sources, the snipers came from an ultra-right-wing military organization known as Ukrainian National Assembly – Ukrainian People’s Self-Defense (UNA-UNSO).
IMAGE: Members of UNA-UNSO marching in Lviv.
Strange Ukraine ‘Nationalists’
The leader of UNA-UNSO, Andriy Shkil, ten years ago became an adviser to Julia Tymoshenko. UNA-UNSO, during the US-instigated 2003-2004 “Orange Revolution”, backed pro-NATO candidate Viktor Yushchenko against his pro-Russian opponent, Yanukovich. UNA-UNSO members provided security for the supporters of Yushchenko and Julia Tymoshenko on Independence Square in Kiev in 2003-4.
UNA-UNSO is also reported to have close ties to the German National Democratic Party (NDP).
Ever since the dissolution of the Soviet Union in 1991 the crack-para-military UNA-UNSO members have been behind every revolt against Russian influence. The one connecting thread in their violent campaigns is always anti-Russia. The organization, according to veteran US intelligence sources, is part of a secret NATO “GLADIO” organization, and not a Ukraine nationalist group as portrayed in western media. 
According to these sources, UNA-UNSO have been involved (confirmed officially) in the Lithuanian events in the Winter of 1991, the Soviet Coup d’etat in Summer 1991, the war for the Pridnister Republic 1992, the anti-Moscow Abkhazia War 1993, the Chechen War, the US-organized Kosovo Campaign Against the Serbs, and the August 8 2008 war in Georgia. According to these reports, UNA-UNSO para-military have been involved in every NATO dirty war in the post-cold war period, always fighting on behalf of NATO. “These people are the dangerous mercenaries used all over the world to fight NATO’s dirty war, and to frame Russia because this group pretends to be Russian special forces. THESE ARE THE BAD GUYS, forget about the window dressing nationalists, these are the men behind the sniper rifles,” these sources insist.
If true that UNA-UNSO is not “Ukrainian” opposition, but rather a highly secret NATO force using Ukraine as base, it would suggest that the EU peace compromise with the moderates was likely sabotaged by the one major player excluded from the Kiev 21 February diplomatic talks—Victoria Nuland’s State Department. Both Nuland and right-wing Republican US Senator John McCainhave had contact with the leader of the Ukrainian opposition Svoboda Party, whose leader is openly anti-semitic and defends the deeds of a World War II Ukrainian SS-Galicia Division head. The party was registered in 1995, initially calling itself the “Social National Party of Ukraine” and using a swastika style logo. Svoboda is the electoral front for neo-nazi organizations in Ukraine such as UNA-UNSO.
One further indication that Nuland’s hand is shaping latest Ukraine events is the fact that the new Ukrainian Parliament is expected to nominate Nuland’s choice, Arseny Yatsenyuk, from Tymoshenko’s party, to be interim head of the new Cabinet.
Whatever the final truth, clear is that Washington has prepared a new economic rape of Ukraine using its control over the International Monetary Fund (IMF).
IMF plunder of Ukraine Crown Jewels
Now that the “opposition” has driven a duly-elected president into exile somewhere unknown, and dissolved the national riot police, Berkut, Washington has demanded that Ukraine submit to onerous IMF conditionalities.
In negotiations last October, the IMF demanded that Ukraine double prices for gas and electricity to industry and homes, that they lift a ban on private sale of Ukraine’s rich agriculture lands, make a major overhaul of their economic holdings, devalue the currency, slash state funds for school children and the elderly to “balance the budget.” In return Ukraine would get a paltry $4 billion.
Before the ouster of the Moscow-leaning Yanukovich government last week, Moscow was prepared to buy some $15 billion of Ukraine debt and to slash its gas prices by fully one-third. Now, understandably, Russia is unlikely to give that support. The economic cooperation between Ukraine and Moscow was something Washington was determined to sabotage at all costs.
This drama is far from over. The stakes involve the very future of Russia, the EU-Russian relations, and the global power of Washington, or at least that faction in Washington that sees further wars as the prime instrument of policy.
Writer F. William Engdahl is a geopolitical analyst and the author of “Full Spectrum Dominance: Totalitarian Democracy in the New World Order”.
 F. William Engdahl, US-Außenministerium in flagranti über Regimewechsel in der Ukraine ertappt, Kopp Online.de, February 8, 2014, accessed in http://info.kopp-verlag.de/hintergruende/enthuellungen/f-william-engdahl/us-aussenministerium-in-flagranti-ueber-regimewechsel-in-der-ukraine-ertappt.html
 Bertrand Benoit, Laurence Norman and Stephen Fidler , European Ministers Brokered Ukraine Political Compromise: German, French, Polish Foreign Ministers Flew to Kiev, The Wall Street Journal, February 21, 2014, accessed in http://online.wsj.com/news/articles/SB10001424052702303636404579397351862903542?mg=reno64-wsj&url=http%3A%2F%2Fonline.wsj.com%2Farticle%2FSB10001424052702303636404579397351862903542.html
 Jessica Best, Ukraine protests Snipers firing live rounds at demonstrators as fresh violence erupts despite truce, The Mirror UK, February 20, 2014, accessed inhttp://www.mirror.co.uk/news/world-news/ukraine-protests-snipers-firing-live-3164828
 Aleksandar Vasovic , Far right group flexes during Ukraine revolution, Associated Press, January 3, 2005, Accessed in http://community.seattletimes.nwsource.com/archive/?date=20050103&slug=ukraine03
 Wikipedia, Ukrainian National Assembly Ukrainian National Self Defence, Wikipedia, the free encyclopedia, accessed inhttp://en.wikipedia.org/wiki/Ukrainian_National_Assembly_%E2%80%93_Ukrainian_National_Self_Defence
 Source report, Who Has Ukraine Weapons, February 27, 2014, private to author.
 Max Blumenthal, Is the US backing neo-Nazis in Ukraine?, AlterNet February 25, 2014, accessed in
 Channel 4 News, Far right group at heart of Ukraine protests meet US senator, 16 December 2013, accessed in
“Washington and Brussels … used a Nazi coup, carried out by insurgents, terrorists and politicians of Euromaidan to serve the geopolitical interests of the West.” — Natalia Vitrenko, The Progressive Socialist Party of Ukraine
The United States helped defeat Nazism in World War 2. Obama helped bring it back.
As you probably know by now, Obama and Co. have ousted Ukraine’s democratically-elected president, Viktor Yanukovych, with the help of ultra-right, paramilitary, neo-Nazi gangs who seized and burned government offices, killed riot police, and spread mayhem and terror across the country. These are America’s new allies in the Great Game, the grand plan to “pivot to Asia” by pushing further eastward, toppling peaceful governments, securing vital pipeline corridors, accessing scarce oil and natural gas reserves and dismantling the Russian Federation consistent with the strategy proposed by geopolitical mastermind, Zbigniew Brzezinski. Brzezinski’s magnum opus–”The Grand Chessboard: American Primacy and it’s Geostrategic Imperatives” has become the Mein Kampf for aspiring western imperialists. It provides the basic blueprint for establishing US military-political-economic hegemony in the century’s most promising and prosperous region, Asia. In an article in Foreign Affairs Brzezinski laid out his ideas about neutralizing Russia by splitting the country into smaller parts, thus, allowing the US to maintain its dominant role in the region without threat of challenge or interference. Here’s an excerpt from the article:
“Given (Russia’s) size and diversity, a decentralized political system and free-market economics would be most likely to unleash the creative potential of the Russian people and Russia’s vast natural resources. A loosely confederated Russia — composed of a European Russia, a Siberian Republic, and a Far Eastern Republic — would also find it easier to cultivate closer economic relations with its neighbors. Each of the confederated entitles would be able to tap its local creative potential, stifled for centuries by Moscow’s heavy bureaucratic hand. In turn, a decentralized Russia would be less susceptible to imperial mobilization.” (Zbigniew Brzezinski,“A Geostrategy for Eurasia”)
Moscow is keenly aware of Washington’s divide and conquer strategy, but has downplayed the issue in order to avoid a confrontation. The US-backed coup in Ukraine means that that option is no longer feasible. Russia will have to respond to a provocation that threatens both its security and vital interests. Early reports suggest that Putin has already mobilized troops to the East and –according to Reuters “put fighter jets along its western borders on combat alert.” Here’s more from Reuters:
“The United States says any Russian military action would be a grave mistake. But Russia’s foreign ministry said in a statement that Moscow would defend the rights of its compatriots and react without compromise to any violation of those rights.” (Reuters)
There’s going to be a confrontation, it’s just a matter of whether the fighting will escalate or not.
In order to topple Yanukovych, the US had to tacitly support fanatical groups of neo-Nazi thugs and anti-Semites. And, even though “Interim Ukrainian President Oleksander Tuchynov has pledged to do everything in his power to protect the country’s Jewish community”; reports on the ground are not so encouraging. Here’s an excerpt from a statement by Natalia Vitrenko, of The Progressive Socialist Party of Ukraine that suggests the situation is much worse than what is being reported in the news:
“Across the country… People are being beaten and stoned, while undesirable members of the Verkhovna Rada of Ukraine are subject to mass intimidation and local officials see their families and children targeted by death threats if they do not support the installation of this new political power. The new Ukrainian authorities are massively burning the offices of political parties they do not like, and have publicly announced the threat of criminal prosecution and prohibition of political parties and public organizations that do not share the ideology and goals of the new regime.” (“USA and EU Are Erecting a Nazi Regime on Ukrainian Territory”, Natalia Vitrenko)
Earlier in the week, Israeli newspaper Haaretz reported that a Ukranian synagogue had been firebombed although the “Molotov cocktails struck the synagogue’s exterior stone walls and caused little damage”.
Another article in Haaretz referred to recent developments as “the new dilemma for Jews in Ukraine”. Here’s an excerpt from the article:
“The greatest worry now is not the uptick in anti-Semitic incidents but the major presence of ultra-nationalist movements, especially the prominence of the Svoboda party and Pravy Sektor (right sector) members among the demonstrators. Many of them are calling their political opponents “Zhids” and flying flags with neo-Nazi symbols. There have also been reports, from reliable sources, of these movements distributing freshly translated editions of Mein Kampf and the Protocols of the Elders of Zion in Independence Square.” (“Anti-Semitism, though a real threat, is being used by the Kremlin as a political football”,Haaretz)
Then there’s this, from Dr. Inna Rogatchi in Arutz Sheva:
“There is no secret concerning the real political agenda and programs of ultra-nationalist parties in Ukraine – there is nothing close to European values and goals there. One just should open existing documents and hear what the representatives of those parties proclaim daily. They are sharply anti-European, and highly racist. They have nothing to do with the values and practices of the civilized world…
Ukrainian Jewry is facing a real and serious threat….To empower the openly neo-Nazi movements in Europe by ignoring the threat they pose is an utterly risky business. People should not have to pay a terrible price – again – for the meekness and indifference of their leaders. As Ukraine today has become the tragic show-case for all of Europe with regards to breeding and allowing race-hatred to become a violent and uncontrollable force, it is impertive to handle the situation there in accordance with existing international law and norms of civilization.” (“Tea With Neo-Nazis: The Violent Nationalism in Ukraine“, Arutz Sheva)
Here’s a little more background on the topic by progressive analyst Stephen Lendmen from a February 25 post titled “New York Times: Supporting US Imperial Lawlessness”:
“Washington openly backs fascist Svoboda party leader Oleh Tyahnybok…In 2004, Tyahnybok was expelled from former President Viktor Yushchenko’s parliamentary faction. He was condemned for urging Ukrainians to fight against a “Muscovite-Jewish mafia.”
In 2005, he denounced “criminal activities” of “organized Jewry.” He outrageously claimed they plan “genocide” against Ukrainians.”…
Tyahnybok extremism didn’t deter Assistant Secretary of State for European and Eurasian Affairs Victoria Nuland. On February 6, she met openly with him and other anti-government leaders.
In early January, 15,000 ultranationalists held a torchlight march through Kiev. They did so to honor Nazi-era collaborator/mass murderer Stepan Bandera. Some wore uniforms a Wehrmacht Ukrainian division used in WW II. Others chanted “Ukraine above all” and “Bandera, come and bring order.” (Steve Lendman blog)
Of course, the US media has downplayed the fascistic-neo-Nazi “ethnic purity” element of the Ukrainian coup in order to focus on– what they think — are more “positive themes”, like the knocking down of statues of Lenin or banning Communist party members from participating in Parliament. As far as the media is concerned, these are all signs of progress.
Ukraine is gradually succumbing to the loving embrace of the New World Order where it will serve as another profit-generating cog in Wall Street’s wheel. That’s the theory, at least. It hasn’t occurred to the boneheads at the New York Times or Washington Post that Ukraine is rapidly descending into Mad Max-type anarchy which could spill over its borders into neighboring countries triggering violent conflagrations, social upheaval, regional instability or–god-help-us– WW3. The MSM sees nothing but silver linings as if everything was going according to plan. All of Eurasia, the Middle East and beyond are being pacified and integrated into one world government overseen by the unitary executive who defers to no one but the corporations and financial institutions who control the levers of power behind imperial shoji-screen. What could go wrong?
Naturally, Russia is worried about developments in Ukraine, but is unsure how to react. Here’s how Russian PM Dmitry Medvedev summed it up the other day:
“We do not understand what is going on there. A real threat to our interests (exists) and to the lives and health of our citizens. Strictly speaking, today there is no one there to communicate with … If you think that people in black masks waving Kalashnikovs (represent) a government, then it will be difficult for us to work with such a government.”
Clearly, Moscow is confused and worried. No one expects the world’s only superpower to behave this irrationally, to hop-scotch across the planet creating one failed state after another, fomenting revolt, breeding hatred, and spreading misery wherever it goes. At present, the Obama team is operating at full-throttle trying to topple regimes in Syria, Venezuela, Ukraine, and god-knows where else. At the same time, failed operations in Afghanistan, Iraq and Libya have left all three countries in dire straights, ruled by regional warlords and armed militias. Medvedev has every right to be concerned.
Who wouldn’t be? The US has gone off the rails, stark raving mad. The architecture for global security has collapsed while the basic principals of international law have been jettisoned. The rampaging US juggernaut lurches from one violent confrontation to the next without rhyme or reason, destroying everything in its path, forcing millions to flee their own countries, and pushing the world closer to the abyss. Isn’t that reason enough to be concerned?
Now Obama has thrown-in with the Nazis. It’s just the icing on the cake.
Check out this blurb from Max Blumenthal’s latest titled “Is the U.S. Backing Neo-Nazis in Ukraine?”:
“Right Sector is a shadowy syndicate of self-described ‘autonomous nationalists’ identified by their skinhead style of dress, ascetic lifestyle, and fascination with street violence. Armed with riot shields and clubs, the group’s cadres have manned the front lines of the Euromaidan battles this month, filling the air with their signature chant: ‘Ukraine above all!’ In a recent Right Sector propaganda video the group promised to fight ‘against degeneration and totalitarian liberalism, for traditional national morality and family values.’
With Svoboda linked to a constellation of international neo-fascist parties through the Alliance of European National Movements, Right Sector is promising to lead its army of aimless, disillusioned young men on “a great European Reconquest.” (“Is the U.S. Backing Neo-Nazis in Ukraine?—Exposing troubling ties in the U.S. to overt Nazi and fascist protesters in Ukraine“, Max Blumenthal, AlterNet)
“Family values”? Where have we heard that before?
It’s clear, that Obama and his brainiac advisors think they have a handle on this thing and can train this den of vipers to click their heels and follow Washington’s directives, but it sounds like a bad bet to me. These are hard-core, died-in-the-wool, Nazi-extremists. They won’t be bought-off, co-opted or intimidated. They have an agenda and they aim to pursue that agenda to their last, dying breath.
Of all the dumb plans Washington has come up with in the couple years, this is the dumbest.
Newly appointed Prime Minister of Ukraine and former central banker Arseniy Yatsenyuk
A reshuffled Ukrainian Parliament installed following a coup last week has voted to appoint Arseniy Yatsenyuk as the new prime minister of the country. Yats, as Victoria Nuland, the Assistant Secretary of State for European and Eurasian Affairs at the U.S. State Department, called him, is a natural choice. He is a millionaire former banker who served as economy minister, foreign minister and parliamentary speaker before Yanukovych took office in 2010. He is a member of Yulie Tymoshenko’s Fatherland Party. Prior to the revolution cooked up by the State Department and executed by ultra-nationalist street thugs, Tymoshenko was incarcerated for embezzlement and other crimes against the people of Ukraine. Now she will be part of the installed government, same as she was after the last orchestrated coup, the Orange Revolution.
Yats will deliver Ukraine to the international bankers. “Ukraine is on the brink of bankruptcy and needs to be saved from collapse — Yatsenyuk has a strong economic background,” Ariel Cohen, senior fellow at the Washington-based Heritage Foundation, told Bloomberg on Wednesday. “Ukraine faces difficult reforms but without them there won’t be a successful future.”
Discussion with the IMF is crucial, US Treasury Secretary Jacob Lew said earlier this week. In order to cinch the deal, the U.S. government will sweeten the pot. Lew talked with the IMF boss, Christine Lagarde, about Ukraine as he headed back from a globalist confab, the G-20 meeting in Sydney, Australia.
“Secretary Lew informed Managing Director Lagarde that he had spoken earlier in the day with Ukrainian leader Arseniy Yatsenyuk and advised him of the broad support for an international assistance package centered on the IMF, as soon as the transitional Ukrainian government is fully established by the Parliament,” MNI News reported on Monday. “Secretary Lew also noted that he had communicated to Mr. Yatsenyuk the need to quickly begin implementing economic reforms and enter discussions with the IMF following the establishment of the transitional government.”
Ukraine’s story is right out of the IMF playbook. The nation’s corrupt leaders past and present – most notably Tymoshenko, who went to prison for corruption and wholesale thievery – have enriched themselves at the expensive of ordinary Ukrainians.
“Ukraine at the dawn of independence was among the ten most developed countries, and now it drags out a miserable existence,” Communist Party leader Petro Symonenko said last year. The nation’s leaders “signed a memorandum with the International Monetary Fund to meet the requirements of the oligarchs, but on the other hand — to timely pay the interest on the IMF loans and to raise the prices for gas and electricity,” Symonenko said.
The Orange Revolution – initiated by NED, IRI, Soros and the CIA – installed a rogue’s gallery of self-seeking sociopaths who further bankrupted a country already seriously debilitated by corruption.
For the IMF and the financial elite, Ukraine is nothing less than a tantalizing bounty. “Its fertile black soil generated more than one-fourth of Soviet agricultural output, and its farms provided substantial quantities of meat, milk, grain, and vegetables to other republics,” notes ABO, a website covering energy resources. “Likewise, its diversified heavy industry supplied the unique equipment (for example, large diameter pipes) and raw materials to industrial and mining sites (vertical drilling apparatus) in other regions of the former USSR.”
After breaking away from the Soviet Union and declaring independence, it was thought the country would “liberalize” its industry and resources, in other words open them up for privatization by transnational corporations and international banks, but this did not happen quickly enough for the financiers and the corporatists.
“The drop in steel prices and Ukraine’s exposure to the global financial crisis due to aggressive foreign borrowing lowered growth in 2008 and the economy contracted more than 15 percent in 2009, among the worst economic performances in the world,” ABO explains. “In August 2010, Ukraine, under the Yanukovych Administration, reached a new agreement with the IMF for a $15.1 billion Stand-By Agreement. Economic growth resumed in 2010 and 2011, buoyed by exports. After initial disbursements, the IMF program stalled in early 2011 due to the Ukrainian Government’s lack of progress in implementing key gas sector reforms, namely gas tariff increases. Economic growth slowed in the second half of 2012 with Ukraine finishing the year in technical recession following two consecutive quarters of negative growth.”
Now that Yanukovych is out of the picture, the banker minion Yats is lording over the Parliament, and thuggish fascists control the streets and guard against a counter revolution that my threaten Wall Street’s coup, the coast is clear for the IMF to pick up where it left off. Ukraine, now one of the poorest countries in Europe thanks to a kleptocracy supported by Washington and Wall Street, is wide open for further looting.
The big currency reset. It’s not a case of ‘if’ – it’s a case ofwhen.
Don’t expect your provincial Secretary of Treasury or Chancellor Exchequer to warn you about what is coming around the corner, because they are either too stupid to know, or too busy covering their own backsides.
To understand where we are, it’s very important to understand how we got here (another point which bureaucrats and backers do not want the general populace to know).
A quick history lesson then…
The Opposite of Emerging is Submerging
Lulled and distracted by the antics of developed country central banks and emerging economy central banks – to constantly “pump-up the jam” and flood the economy with paper casino chips from either Fort Knox or Mount Gox, the real tectonic shift of the global economy since 2008 has been more or less ignored by financial gurus and sages. It is taken as “normal” that deflation, ordisinflation is operating in the developed economies, but now we can see that rip-roaring inflation operating in the emerging economies.
Supposedly, this is ‘Muddle Through’, but since 2008 the North-South paradigm has all but dissolved – the developed OECD economies are locked in a death embrace with the Emerging economies. The developed economies are now locked into chronic globalization – exporting monetary inflation while importing cheap industrial goods, services and resources.
Since 2008 the always-promised ‘world shift’ of the economy from west to east, and from north to south has happened, but the net result is a shock. Pretending “we didn’t know” is comforting, but ultimately stupid.
This is an unstable equilibrium, or an interregnum – even a sideshow, because the current global economic context and process is the exact opposite of sustainable. Harm to both North and South is now the main impact of the post-2008 process of overreach and intense fiat paper shuffling. Listing the consequences and causes of this overreach is not easy and always open to argument, but possibly the best summary is to suggest that since 2008, ‘Ricardo’s comparative advantage‘ paradigm has been inverted. Economic and above all monetary globalization is now the path to ruin and poverty. From win-win to lose-lose. The worse it gets, expect the architects of ruin – establishment politicians, central bankers and financial pundits, to retreat into even deeper denial.
The Production Bubble That Triggers the Collapse
Another simple way to argue the global economy has overreached is that industrial and economic production capacity in the Emerging economies (EMs), starting with the BRICs, is now massively over-sized. This means the EMs can and will saturate the post-industrial, deflating North with industrial supply at every stage and opportunity as technology, design and product development throw up a new market openings everywhere. Examples like the car and cellphone, fashion wear and off-shore call center industries are relatively “classic”. All of these are already saturated with capacity – but the EMs are still adding more. Previous historical “classic examples” of this process for example included the ship building industry, but the scale paradigm has been woefully ignored.
BRAZILIAN SKILLZ: Production of top-line automobiles in Brazil has surpassed many of its ‘developed’ counterparts.
Since 2008, the process has intensified, creating an increasingly certain outlook for a forced and fiat end to the willingness of the EMs to accept the fiat currency endlessly printed to finance the deflating, de-industrializing DMs (developed economies).
This will not necessarily be a politicized process, of the type hinted at by India’s central bank governor (see http://finance.fortune.cnn.com/tag/raghuram-rajan/), due to the rapidity and scale of the crisis, but instead trigger the collapse of the current global fiat monetary orderdictated by national economic self-defence and survival in the EMs.
The economic jump start of the Ricardo model, which has run riot for the last quarter-century, and went into over-drived from 2008 – will be abandoned.
Deflation/Inflation: Two Sides of the Same Bitcoin
Ricardo’s original model held sunny Portugual as a producer of cork and sherry, while rainy England could produce wine casks from its oak forests and wool from its sheep flocks. The money used in a basically resource-based exchange using then-rapidly growing maritime transport capabilities was held to be stable and gold-linked (or based). Later on, low-cost labor resources were built into Ricardo’s paradigm called “comparative advantage”. The EMs since the 1980s have played the role of resource providers while the DMs were the solvent market suppliers.
While there was a clear limit on cork, wine, oak casks and woolens supply and demand, this does not really apply to modern global fiat money and modern industrial technology. These are high gain positive feedback processes which only stop when they hit a brick wall.
The Ricardo comparative advantage model does not apply to post-1980′s globalization and super economies – like those of China and India, where industrial technology has raced ahead of infrastructure development. This is simply a bomb waiting to explode, alongside the industrial capacity growth, the EMs engaged massive growth of credit, mushroom growth urbanization, neglect of the agriculture and food sector, and turning a blind eye to rampant or even “structural” corruption. Inflation was the sure and certain result.
The results do not stop there. While inflation took off inside the EMs, with their economies producing more than they can consume, and exporting to the DMs which consume more than they produce, the EMs are also exported deflation to the developed market economies. At the same time, the emerging market economies mined out their capital bases to maintain their breakneck growth of industrial capacity.
On an almost daily basis now, the EMs are all shifting to current account deficit with the inevitable consequences of national currency devaluation, further inflation, and of course – higher interest rates.
Win-Win to Lose-Lose: Global Fiat Currency Crisis
The post-1980′s economic globalization paradigm can be called an initial ‘Win-Win’ model which eventually morphed to Lose-Lose.
The industrial nations of the DMs, which formerly benefited from the resource nations of the EMs under the previous ‘Ricardo-type’ model, are now mired in debt and de-industrialization, making it impossible for them to “grow their way out of crisis”. The EMs on their present industrial expansion path can only grow themselves into rapidly-deepening crisis.
The “money-in-the-middle” especially concerns the US dollar and its subsidiary partner, theeuro, both of which are vastly overvalued fiat currencies – but against what? Almost inevitably, this will feature a big rebound for gold, playing the starring role of in this latest episode of “Canary in the Monetary Coal Mine”. From a personal standpoint, or national (for those who have any), physical gold and silver could end up providing solid protection against the exposure of a monetary reset.
Conversely, commodities are unlikely to profit on an enduring sustained basis, due to economic restructuring, re-centering and contraction being almost certain.
Commenting on the IMF’s latest report on global capital flows since 1980, Reuters on 30 January said that while the IMF estimates net capital inflows to emerging economies as $7 trillion or more only since 2005, this was a “legacy trend” hinged on the EMs running a much higher GDP growth differential above the DMs than present. The IMF report noted that for 2014, economic growth in the BRICs will go on declining, and for Russia and Brazil, they will be less even than the GDP growth of the US and Britain. While the IMF’s economists do not allow themselves to project break-of-series change to the global economy, the process of what Gordon T. Long calls “Global collateral impairment” can easily default as the net result of apparently ‘unrelated and complex’ runaway processes.
This collateral impairment will inevitably trigger multi-national currency protection measures, a situation already clear in countries like Turkey, India, Argentina and other EMs.
For DMs in the North, plans are likely already underway. Will the reset feature a brand new reserve currency, or the introduction a fledgling single global, or virtual currency? If so, what will it be backed by (or maybe it won’t). It’s hard to know right now, but a shift of that magnitude could provide for the introduction of something new in the mix.
It’s a case of problem, reaction, solution, and one can assume that this Hegelian equation has already been mapped out on the back of a napkin in an executive dining floor of the one of the world leading central banks, possibly written using Christine Lagarde’s lip stick.
As a result, sacrificing GDP growth to protect the national money in the EMs will be inevitable. In turn, this will send a severe shock wave North to the DMs ,which have surfed on the latter-day version of the Ricardo paradigm for the last 30 years, and are now left unable to adapt.
The basic conclusion is that a global monetary reset is now overdue.
There will be shock waves, and haircuts too.
Brace yourself for impact, because it’s coming.
Public opinion in Western Europe is wrong to regard the Ukrainian crisis as a showdown between Westerners and Russians. In reality, Washington’s goal is not to push the country into the arms of the European Union, but to deprive Russia of its historical partners. To do this, the United States is prepared to ignite a new civil war on the continent.
After having dismembered Yugoslavia during a ten-year civil war (1990-1999), has the United States decided to destroy Ukraine in a similar way? This is what could be inferred from the maneuvers that the opposition is poised to launch during the Sochi Olympic Games.
Ukraine has been historically divided between, in the West, a population turned towards the European Union and, in the East, a population oriented towards Russia, plus a small Muslim minority in Crimea. After the country‘s independence, the government gradually crumbled. Taking advantage of the confusion, the United States organized the «Orange Revolution» (2004) , which brought to power a mafia clan, also pro-Atlanticist. Moscow responded by lifting its subsidies on gas prices, but the Orange government could not rely on its Western allies to help pay the market price. Ultimately, it lost the 2010 presidential election in favor of Viktor Yanukovych, a corrupt politician, and on again-off again pro-Russian.
On 21 November 2013, the government renounces signing the Association Agreement negotiated with the European Union. The opposition responds with protests in Kiev and in the western part of the country, which quickly take on an insurrectionary appearance. It calls for early presidential and parliamentary elections and refuses to form a government when approached by President Yanukovych and the Prime Minister resigns. The events are baptized Euromaidan, then Eurorevolution, by Radio Free Europe (run by the State Department).
The crowd control for the opposition is provided by Azatlyk, a group of young Crimean Tatars who returned from Jihad in Syria especially for the occasion .
The Atlanticist media champion the cause of the «democratic opposition» and condemn Russian influence. High-profile Western figures turn up to manifest their support to the protesters, including Victoria Nuland (Assistant Secretary of State and former Ambassador to NATO) and John McCain (Chairman of the Republican branch of the NED). For its part, the Russian press condemns protesters who have taken to the streets to overthrow democratically elected institutions.
Torch-lit march of 15,000 Nazis in Kiev on 1 January 2014.
At first, the movement seemed to be an attempt to orchestrate a second «Orange Revolution.» But on 1 January 2014 the power in the street changes hands. The Nazi «Freedom» party organizes a 15 000-strong torch-lit march in memory of Stepan Bandera (1909-1959), the nationalist leader who allied himself with the Nazis against the Soviets. Since this event, the capital has been covered with anti-Semitic graffiti and people are attacked on the street for being Jewish.
The pro-European opposition is made up of three political parties:
- The All-Ukrainian Union “Fatherland” (Batkivshchyna), led by the oligarch and former Prime Minister Yulia Tymoshenko (serving a prison sentence following her convictions for embezzlement) and currently headed by lawyer and former Parliament speaker Arseniy Yatsenyuk. It stands for private property and the Western liberal model. It garnered 25.57% of the vote in the 2012 parliamentary elections.
- The Ukrainian Democratic Alliance for Reform (Udar), of former boxing world champion Vitali Klitschko. It claims to identify with Christian Democracy and picked up 13.98% in the 2012 elections.
- The All-Ukrainian Union “Svoboda” (Freedom), led by the surgeon Oleh Tyahnybok. This political group sprang from the National Socialist Party of Ukraine. It promotes the denaturalization of Jewish Ukrainians. It won 10.45% of the vote in the 2012 parliamentary elections.
- The Congress of Ukrainian Nationalists, a Nazi splinter group from the former NATO stay-behind networks in the Eastern Bloc . A Zionist, he calls for the denaturalization and deportation of Ukrainian Jews to Israel. He received 1.11% of the vote in 2012.
- The Ukrainian Self-Defense, a nationalist splinter group that sent its members to fight the Russians in Chechnya and Ossetia during the Georgian conflict. It got 0.08% of the vote in 2012.
These parliamentary parties have the support of:
In addition, the opposition has received the endorsement of the Ukrainian Orthodox Church, in revolt against the Moscow Patriarchate. Ever since the Nazi Party took over the streets, the demonstrators – many of them wearing helmets and dressed in paramilitary uniforms -have erected barricades and stormed government buildings. Certain elements of the police force have also displayed great brutality, going so far as to torture detainees. A dozen protesters were killed and nearly 2,000 were wounded. The unrest spread to the western provinces of the country.
According to our information, the Ukrainian opposition seeks to import military materials acquired on parallel markets. It is obviously not possible to purchase weapons in Western Europe and bring them in without NATO’s green light.
Washington’s strategy in Ukraine would appear to be a combination of proven “color revolution” recipes with others recently concocted during the “Arab Spring” . Moreover, the United States makes no effort to hide it: it dispatched two officials, Victoria Nuland (deputy to John Kerry) and John McCain (who is not only a Republican senator, but also the chairman of IRI, the Republican branch of the NED ) to support the protesters. Unlike Libya and Syria, Washington does not have jihadists on hand to sow chaos (except for Tatar extremists, but they are only located in Crimea). It was therefore decided to lean on the Nazis with whom the State Department worked against the Soviets and has organized in political parties since independence.
The inexperienced reader may be taken aback by this alliance between the Obama administration and the Nazis. However, it must be remembered that Ukrainian Nazis were publicly honored at the White House by President Reagan, including Yaroslav Stetsko, Ukrainian Prime Minister under the Third Reich, who became the head of the anti-Bolshevik Bloc of Nations and a member of the World anti-Communist League . One of his deputies, Lev Dobriansky, became U.S. ambassador to the Bahamas, while his daughter Paula Dobriansky served as Under Secretary of State for Democracy (sic) during the George W. Bush administration. It is the same Ms. Dobriansky who for ten years sponsored a historical research with the aim of clouding the fact that the Holodomor, the famine that hit Ukraine in 1932-33, also devastated Russia and Kazakhstan, thereby reinforcing the myth that Stalin was determined to eliminate the Ukrainian people .
In fact, Washington, who had supported the German Nazi party until 1939 and continued to do business with Nazi Germany until the end of 1941, never had a moral problem with Nazism, not more than it has today in providing military support to jihadism in Syria.
Western European elites, who use Nazism as a pretext to harass firebrands – as seen with the „quenelle“ controversy over French comedien Dieudonné M’Bala M’Bala  – have forgotten what it really is. In 2005, they closed their eyes to the rehabilitation of Nazism by the President of Latvia, Vaira Vike-Freiberga, as if it were trivial . On the simple strength of statements in favor of the European Union, and wrapped up in their blissful Atlanticism, they now support their worst enemy. Civil war could start in Ukraine during the Olympic Games in Sochi.
Thierry Meyssan – French intellectual, founder and chairman of Voltaire Network and the Axis for Peace Conference. His columns specializing in international relations feature in daily newspapers and weekly magazines in Arabic, Spanish and Russian
 “Washington et Moscou se livrent bataille en Ukraine”, by Emilia Nazarenko and the editorial staff, Réseau Voltaire, 1 November 2004.
 “Jihadists in charge of crowd control in Kiev protests”, Translation Alizée Ville, Voltaire Network, 5 December 2013.
 This is the cesspool that the father of the “Orange revolution” alighted from. Cf. “La biographie cachée du père du président ukrainien”, Réseau Voltaire, 18 April 2008.
 “Coup in Western Ukraine: the Arab Spring unleashed in Europe”, by Andrew Korybko, Oriental Review/Voltaire Network, 27 January 2014.
 “La NED, vitrine légale de la CIA”, by Thierry Meyssan, Odnako/Réseau Voltaire, 6 October 2010.
 “La Ligue anti-communiste mondiale, une internationale du crime”, by Thierry Meyssan, Réseau Voltaire, 12 May 2004.
 See: L’Holodomor, nouvel avatar de l’anticommunisme « européen », by Professor Annie Lacroix-Riz, 2008.
 “The Bête Noire of the French Establishment”, by Diana Johnstone, Counterpunch/Voltaire Network, 5 January 2014.
 “Latvian President Rehabilitates Nazism”, by Thierry Meyssan, Voltaire Network, 16 March 2005.
Source: Voltaire Network
A book review: Who Lost America? by Bromwell Ault…
Part 2: Institutional failure, loss of enforcing the rule of law, injection of incompatible diversity.
History becomes the great mentor for any civilization hoping to outlast the ages. For all its bloody conflicts, history presents every country lessons from the past on how other nations failed to survive.
But in the 21st century, America’s leaders and its citizens ignore the lessons of history. And, ironically, as America becomes less and less of its own people and more and more of dissimilar people from around the world, it won’t be able to return itself to its intellectual, cultural, linguistic and spiritual foundation.
Former Colorado Governor Richard D. Lamm said, “If you believe that America is too smug, too self-satisfied, too rich, then let’s destroy America. It is not that hard to do. No nation in history has survived the ravages of time.”
Arnold Toynbee observed that all great civilizations rise and fall, and that, “An autopsy of history would show that all great nations commit suicide.”
In his newest book, Who Lost America?—Yale University graduate Bromwell Ault, at 86 years of age, brings enormous historical perspective to the American predicament.
“History is an excellent teacher,” said Ault. “To some degree it is infallible. It is both the messenger and message, and writes our records. In the end, it determines who survives and who doesn’t, and more importantly, what is and what isn’t. It leaves little room for argument when it is being written and even less thereafter.”
Every high school student learns how Rome fell. Every student of history knows how Easter Island’s civilization collapsed into extinction. A quick reading tells all of us why the Mayan civilization vanished. Historical records show why the Pueblo people of Mesa Verde disappeared from their homes in the rock walls of that ancient civilization.
But do you think the citizens and leaders of America in the 21st century take note of the causes of those collapsed civilizations? Do you think we Americans are taking actions to avoid our own definite collapse of our civilization? The empirical and unavoidable answer: no! In reality, we follow in the footsteps of those ancient civilizations of history that collapsed.
“The legislative branch of our government, with the power and responsibility to create and pass our laws,” said Ault, “is riven with so many divisions that its 535 members in the House and Senate are more and more to be found at the far ends of the political spectrum without a refuge of reason at the center. In our time and place, it is a catastrophe. How did it his happen and why do we permit it”
When you look at our 10 million unemployed and 7 million underemployed, or 48 million citizens subsisting on food stamps, or our $18 trillion national debt, or our $315 billion annual trade deficit to China, or our useless 10-year wars in Iraq and Afghanistan—you cannot help but lament the devolvement of our country into a horrendous geopolitical hole from which we may not recover.
When you look at our racial strife that dominates the headlines or our porous borders that our Congress facilitated to allow over 12 to 20 million people to cross without invitation or legality—you cannot help but wonder who pretends to be in charge of our laws. The agony of 68 percent of our African-American children being brought up by a single mother on welfare—speaks to something terribly wrong.
Who lost America? We citizens gave our country away to power mongers, to the military industrial complex, which foments foreign wars out of fabrications of fear, and to institutional failures.
“To protect ourselves, we must change our concept of power,” said Ault, “and elect as president, not someone who merely wants power, but someone who can wield it in a moral and balanced way…the great fault of government in America today is that it is considered a means, not and end. It means our elected representatives connive in the distribution of our national political and material resources to favored areas or interests. We have badly abused our democracy and in the process have done ourselves great disservice.”
In essence, we gave the military-industrial-complex a cart blanche pass to create Korea, Vietnam, Desert Storm, Afghanistan and Iraq (twice). No one questions those dishonest wars even after the evidence shows that our leaders contrived those conflicts.
What causes those manufactured wars? Answer: money. Corporations make a lot of money. A lot of kids die for that money someone else makes.
Ault said, “Money flows in almost unimaginable amounts throughout our political process and is constantly directed and redirected by the same people to the same places.”
Ault describes how conflicted religions faced each other on the battlefields with swords, spears, maces and longbows. Their cruelty such as the Christians on the Crusades against the Muslims of the 11th, 12th and 13thcenturies engaged extreme barbarism on both sides. Today, Muslims commit horrific-barbaric acts against the West, but in return, the West bombs and kills hundreds of thousands of Muslims in their own lands. With countries like Syria, Muslims shoot, bomb, poison and kill each other with prolific enthusiasm.
Ault describes Rome’s fall to its endless immigration that destroyed its cohesive military into the chaos of the Goths, Visa-Goths and Vandals. Rome lost its cultural foundation along with its language.
“As to immigration, enter the Kudzu Curve,” said Ault. “Extend it another 50 years and our America will join the Easter Island sculptures looking for help that will not come.”
What Americans don’t realize continues at breakneck speed: America will change from a 90 percent European majority to a Latino majority by 2042—a scant 28 years from now. That means our major language, English, will share center stage with Spanish. Our national ethos faces radical change.
“Can this come to pass?” said Ault. “And why is it considered a very real possibility by many Americans. For an answer, it is only necessary to look to Europe. We have seats, front and center, to observe the deadly results of unchecked immigration in France, Germany, England, Denmark, Norway, Netherlands and Italy where former colonial powers are being swamped by constant third world arrivals, mostly from Africa or the Near East, and mostly Muslims.
“The result has been extreme violence in the streets with random acts of murder, rape, torture and extensive property damage. To look at the European history, to listen to the arguments on both sides, to observe the results, and then to think it can’t happen here is sheer folly.”
By reading Ault’s book and watching television nightly, you cannot help but “connect the dots” on how we lost America and how fast we continue losing it even further to a peaceful, self-invited invasion via immigration.
Ironically, the latest S744 amnesty bill doubled legal immigration from 1 million to 2 million annually. If it passes, ultimately the rate of speed of immigration leading to an added 100 million immigrants by 2050 shall accelerate at twice the velocity.
Our ultimate destination places a special ring to Toybee’s words: “All great civilizations rise and fall, and that, an autopsy of history would show that all great nations commit suicide.”
Part 3: Losing our national identity
Who Lost America? By Bromwell Ault
ISBN # 978-1-4634-7446-1
Price: $22.46, 284 pages softcover, Kindle $3.99
Publisher direct copies: 1 888 280 7715
I began writing analysis on the macro-economic situation of the American financial structure back in 2006, and in the eight years since, I have seen an undeniably steady trend of fiscal decline.
I have never had any doubt that the U.S. economy as we know it was headed for total and catastrophic collapse, the only question was when, exactly, the final trigger event would occur. As I have pointed out in the past, economic implosion is a process. It grows over time, like the ice shelf on a mountain developing into a potential avalanche. It is easy to shrug off the danger because the visible destruction is not immediate, it is latent; but when the avalanche finally begins, it is far too late for most people to escape…
If you view the progressive financial breakdown in America as some kind of “comedy of errors” or a trial of unlucky coincidences, then there is not much I can do to educate you on the reasons behind the carnage. If, however, you understand that there is a deliberate motivation behind American collapse, then what I have to say here will not fall on biased ears.
The financial crash of 2008, the same crash which has been ongoing for years, is NOT an accident. It is a concerted and engineered crisis meant to position the U.S. for currency disintegration and the institution of a global basket currency controlled by an unaccountable supranational governing body like the International Monetary Fund (IMF). The American populace is being conditioned through economic fear to accept the institutionalization of global financial control and the loss of sovereignty.
Anyone skeptical of this conclusion is welcome to study my numerous past examinations on the issue of globalization; I don’t have the time within this article to re-explain, and frankly, with so much information on deliberate dollar destruction available to the public today I’ve grown tired of anyone with a lack of awareness.
If you continue to believe that the Fed actually exists to “help” stabilize our economy or our currency, then you will never find the logic behind what they do. If you understand that the goal of the Fed and the globalists is to dismantle the dollar and the U.S. economic system to make way for something “new”, then certain recent events and policy initiatives do start to make sense.
The year of 2014 has been looming as a serious concern for me since the final quarter of 2013, and you can read about those concerns and the evidence that supports them in my articleExpect Devastating Global Economic Changes In 2014.
At the end of 2013 we saw at least three major events that could have sent America spiraling into total collapse. The first was the announcement of possible taper measures by the Fed, which have now begun. The second was the possible invasion of Syria which the Obama Administration is still desperate for despite successful efforts by the liberty movement to deny him public support for war. And, the third event was the last debt ceiling debate (or debt ceiling theater depending on how you look at it), which placed the U.S. squarely on the edge of fiscal default.
As we begin 2014, these same threatening issues remain (along with many others), only at greater levels and with more prominence. New developments reinforce my original position that this year will be remembered by historians as the year in which the final breakdown of the U.S. monetary dynamic was set in motion. Here are some of those developments explained…
Taper Of QE3
When I first suggested that a Fed taper was not only possible but probable months ago, I was met with a lot a bit of criticism from some in the alternative economic world. You can read my taper articles here and here.
This was understandable. The Fed uses multiple stimulus outlets besides QE in order to manipulate U.S. markets. Artificially lowering interest rates is very much a form of stimulus in itself, for instance.
However, I think a dangerous blindness to threats beyond money printing has developed within our community of analysts and this must be remedied. People need to realize first that the Fed does NOT care about the continued health of our economy, and they may not care about presenting a facade of health for much longer either. Alternative analysts also need to come to grips with the reality that overt money printing is not the only method at the disposal of globalists when destroying the greenback. A debt default is just as likely to cause loss of world reserve status and devaluation – no printing press required. Blame goes to government and political gridlock while the banks slither away in the midst of the chaos.
The taper of QE3 is not a “head fake”, it is very real, but there are many hidden motivations behind such cuts.
Currently, $20 billion has been trimmed from the $85 billion per month program, and we are already beginning to see what APPEAR to be market effects, including a flight from emerging market currencies from Argentina to Turkey. A couple of years ago investors viewed these markets as among the few places they could exploit to make a positive return, or in other words, one of the few places they could successfully gamble. The Fed taper, though, seems to be shifting the flow of capital away from emerging markets.
The mainstream argument is that stimulus was flowing into such markets, giving them liquidity support, and the taper is drying up that liquidity. Whether this is actually true is hard to say, given that without a full audit we have no idea how much fiat the Federal Reserve has actually created and how much of it they send out into foreign markets.
I stand more on the position that the Fed taper was actually begun in preparation for a slowdown in global markets that was already in progress. In fact, I believe central bankers have been well aware that a decline in every sector was coming, and are moving to insulate themselves.
Is it just a “coincidence” that the central bankers have initiated their taper of QE right when global manufacturing numbers begin to plummet?
Is it just “coincidence” the taper was started right when the Baltic Dry Index, a global indicator of shipping demand, has lost over 50% of its value in the past few weeks?
Is it just “coincidence” that the taper is running tandem with dismal retail sales growth reports from across the globe coming in from the final quarter of 2013?
And, is it just a “coincidence” that the Fed taper is a accelerating right as the next debt ceiling debate begins in March, and when reports are being released by the Congressional Budget Office that over 2 million jobs (in work hours) may be lost due to Obamacare?
No, I do not think any of this is coincidence. Most if not all of these negative indicators needed months to generate, so they could not have been caused by the taper itself. The only explanation beyond “coincidence” is that the Federal Reserve WANTED to launch the taper program and protect itself before these signals began to reach the public.
Look at it this way – The taper program distances the bankers from responsibility for crisis in our financial framework, at least in the eyes of the general public. If a market calamity takes place WHILE stimulus measures are still at full speed, this makes the banks look rather guilty, or at least incompetent. People would begin to question the validity of central bank methods, and they might even question the validity of the central bank’s existence. The Fed is creating space between itself and the economy because they know that a trigger event is coming. They want to ensure that they are not blamed and that stimulus itself is not seen as ineffective, or seen as the cause.
We all know that the claims of recovery are utter nonsense. Beyond the numerous warning signs listed above, one need only look at true unemployment numbers, household wage decline, and record low personal savings of the average American. The taper is not in response to an improving economic environment. Rather, the taper is a signal for the next stage of collapse.
Stocks are beginning to plummet around the world and all mainstream pundits are pointing fingers at a reduction in stimulus which has very little to do with anything. What is the message they want us to digest? That we “can’t live” without the aid and oversight of central banks.
The real reason stocks and other indicators are stumbling is because the effectiveness of stimulus manipulation has a shelf life, and that shelf life is over for the Federal Reserve. I suspect they will continue cutting QE every month for the next year as stocks decline. Will the Fed restart QE? If they do, it will probably not occur until after a substantial breakdown has ensued and the public is sufficiently shell-shocked. The possibility also exists that the Fed will never return to stimulus measures (if debt default is the plan), and QE stimulus will eventually be replaced by IMF “aid”.
Government Controlled Investment
Last month, just as taper measures were being implemented, the White House launched an investment program called MyRA; a retirement IRA program in which middle class and low wage Americans can invest part of their paycheck in government bonds.
That’s right, if you wanted to know where the money was going to come from to support U.S. debt if the Fed cuts QE, guess what, the money is going to come from YOU.
For a decade or so China was the primary buyer and crutch for U.S. debt spending. After the derivatives crash of 2008, the Federal Reserve became the largest purchaser of Treasury bonds. With the decline of foreign interest in long term U.S. debt, and the taper in full effect, it only makes sense that the government would seek out an alternative source of capital to continue the debt cycle. The MyRA program turns the general American public into a new cash stream, but there’s more going on here than meets the eye…
I find it rather suspicious that a government-controlled retirement program is suddenly introduced just as the Fed has begun to taper, as stocks are beginning to fall, and as questions arise over the U.S. debt ceiling. I have three major concerns:
First, is it possible that like the Fed, the government is also aware that a crash in stocks is coming? And, are they offering the MyRA program as an easy outlet (or trap) for people to pour in what little savings they have as panic over declining equities accelerates? Bonds do tend to look appetizing to uninformed investors during an equities route.
Second, the program is currently voluntary, but what if the plan is to make it mandatory? Obama has already signed mandatory health insurance “taxation” into law, which is meant to steal a portion of every paycheck. Why not steal an even larger portion from every paycheck in order to support U.S. debt? It’s for the “greater good,” after all.
Third, is this a deliberate strategy to corral the last vestiges of private American wealth into the corner of U.S. bonds, so that this wealth can be confiscated or annihilated? What happens if there is indeed an eventual debt default, as I believe there will be? Will Americans be herded into bonds by a crisis in stocks only to have bonds implode as well? Will they be conned into bond investment out of a “patriotic duty” to save the nation from default? Or, will the government just take their money through legislative wrangling, as was done in Cyprus not long ago?
The Final Swindle
Again, the next debt ceiling debate is slated for the end of this month. If the government decides to kick the can down the road for another quarter, I believe this will be the last time. The most recent actions of the Fed and the government signal preparations for a stock implosion and ultimate debt calamity. Default would have immediate effects in foreign markets, but the appearance of U.S. stability could drag on for a time, giving the globalists ample opportunity to siphon every ounce of financial blood from the public.
It is difficult to say how the next year will play out, but one thing is certain; something very strange and ugly is afoot. The goal of the globalists is to engineer desperation. To create a catastrophe and then force the masses to beg for help. How many hands of “friendship” will be offered in the wake of a U.S. wealth and currency crisis? What offers for “aid” will come from the IMF? How much of our country and how many of our people will be collateralized to secure that aid? And, how many Americans will go along with the swindle because they were not prepared in advance?
Source: Brandon Smith | Alt-Market
In a span of four days last week, two current executives and one recently retired top ranking executive of major financial firms were found dead. Both media and police have been quick to label the deaths as likely suicides. Missing from the reports is the salient fact that all three of the financial firms the executives worked for are under investigation for potentially serious financial fraud.
The deaths began on Sunday, January 26. London police reported that William Broeksmit, a top executive at Deutsche Bank who had retired in 2013, had been found hanged in his home in the South Kensington section of London. The day after Broeksmit was pronounced dead, Eric Ben-Artzi, a former risk analyst turned whistleblower at Deutsche Bank, was scheduled to speak at Auburn University in Alabama on his allegations that Deutsche had hid $12 billion in losses during the financial crisis with the knowledge of senior executives. Two other whistleblowers have brought similar charges against Deutsche Bank.
Deutsche Bank is also under investigation by global regulators for potentially rigging the foreign exchange markets – an action similar to the charges it settled in 2013 over its traders’ involvement in the rigging of the interest rate benchmark, Libor.
Just two days after Broeksmit’s death, on Tuesday, January 28, a 39-year old American, Gabriel Magee, a Vice President at JPMorgan in London, plunged to his death from the roof of the 33-story European headquarters of JPMorgan in Canary Wharf. According to Magee’s LinkedIn profile, he was involved in “Technical architecture oversight for planning, development, and operation of systems for fixed income securities and interest rate derivatives.”
Magee’s parents, Bill and Nell Magee, are not buying the official story according to press reports and are planning to travel from the United States to London to get at the truth. One of their key issues, which should also trouble the police, is how an employee obtains access to the rooftop of one of the mostly highly secure buildings in London.
Nell Magee was quoted in the London Evening Standard saying her son was “a happy person who was happy with his life.” His friends are equally mystified, stating he was in a happy, long-term relationship with a girlfriend.
JPMorgan is under the same global investigation for potential involvement in rigging foreign exchange rates as is Deutsche Bank. The firm is also said to be under an investigation by the U.S. Senate’s Permanent Subcommittee on Investigations for its involvement in potential misconduct in physical commodities markets in the U.S. and London.
One day after Magee’s death, on Wednesday, January 29, 2014, 50-year old Michael (Mike) Dueker, the Chief Economist at Russell Investments, is said to have died from a 50-foot fall from a highway ramp down an embankment in Washington state. Again, suicide is being presented by media as the likely cause. (Do people holding Ph.D.s really attempt suicide by jumping 50 feet?)
According to Dueker’s official bio, prior to joining Russell Investments, he was an assistant vice president and research economist at the Federal Reserve Bank of St. Louis from 1991 to 2008. His duties there included serving as an associate editor of the Journal of Business and Economic Statistics. He also was editor of Monetary Trends, a monthly publication of the St. Louis Fed.
Bloomberg News quotes William Poole, former President of the St. Louis Fed from 1998 to 2008, saying “Everyone respected his professional skills and good sense.”
According to a report in the New York Times in November of last year, Russell Investments was one of a number of firms that received subpoenas from New York State regulators who are probing the potential for pay-to-play schemes involving pension funds based in New York. No allegations of wrongdoing have been made against Russell Investments in the matter.
The case of David Bird, the oil markets reporter who had worked at the Wall Street Journal for 20 years and vanished without a trace on the afternoon of January 11, has this in common with the other three tragedies: his work involves a commodities market – oil – which is under investigation by the U.S. Senate’s Permanent Subcommittee on Investigations for possible manipulation. The FBI is involved in the Bird investigation.
Bird left his Long Hill, New Jersey home on that Saturday, telling his wife he was going for a walk. An intentional disappearance is incompatible with the fact that he left the house wearing a bright red jacket and without his life-sustaining medicine he was required to take daily as a result of a liver transplant. Despite a continuous search since his disappearance by hundreds of volunteers, local law enforcement and the FBI, Bird has not been located.
When a series of tragic events involving one industry occur within an 18-day timeframe, the statistical probability of these events being random is remote. According to a number of media reports, JPMorgan is conducting an internal investigation of the death of Gabriel Magee. Given that JPMorgan, Deutsche Bank and Russell Investments are subjects themselves of investigations, a more serious, independent look at these deaths is called for.
Source: Wealthy Debates
In 1979, Iran shocked the world—and directly confronted America’s hegemonic ambitions in the Middle East — by charting its own revolutionary course toward participatory Islamist governance and foreign policy independence. Over the past thirty-five years the Islamic Republic of Iran has held dozens of presidential, parliamentary, and local council elections and attained impressive developmental outcomes—including more progressive results at alleviating poverty, delivering health care, providing educational access, and (yes) expanding opportunities for women than the last shah’s regime ever achieved. Furthermore, the Islamic Republic has done these things while withstanding significant regional challenges and mounting pressure from the United States and its allies. Below, Flynt Leverett and Hillary Mann Leverett suggest that like 1979, 2014 is likely to be, in unique ways, another Year of Iran, when Tehran’s foreign policy strategy will either finally compel Western acceptance of Iran’s sovereign rights—especially to enrich uranium under international safeguards—or fundamentally delegitimise America’s already eroding pretensions to Middle Eastern hegemony.
Hassan Rohani’s election as Iran’s president seven months ago caught most of the West’s self-appointed Iran “experts” by (largely self-generated) surprise. Over the course of Iran’s month-long presidential campaign, methodologically-sound polls by the University of Tehran showed that a Rohani victory was increasingly likely. Yet Iran specialists at Washington’s leading think tanks continued erroneously insisting (as they had for months before the campaign formally commenced) that Iranians could not be polled like other populations and that there would be “a selection rather than an election,” engineered to install Supreme Leader Ayatollah Ali Khamenei’s “anointed” candidate—in most versions, former nuclear negotiator Saeed Jalili. On election day, as Iranian voters began casting their ballots, the Washington Post proclaimed that Rohani “will not be allowed to win”—a statement reflecting virtual consensus among American pundits.
Of course, this consensus was wrong—as have been most of the consensus judgments on Iran’s politics advanced by Western analysts since the country’s 1979 revolution. After Rohani’s victory, instead of admitting error, America’s foreign policy elite manufactured two explanations for it. One was that popular disaffection against the Islamic Republic—supposedly reflected in Iranians’ determination to elect the most change-minded candidate available to them—had exceeded even the capacity of Khamenei and his minions to suppress. This narrative, however, rests on agenda-driven and false assumptions about who Rohani is and how he won.
“The Islamic Republic aims to replace American hegemony with a more multi-polar distribution of power and influence. It seeks to achieve this by using international law and by leveraging participatory Islamist governance and foreign policy independence to accumulate real “soft power”.”
At sixty-five, Rohani is not out to fundamentally change the Islamic Republic he has worked nearly his entire adult life to build. The only cleric on the 2013 presidential ballot, Rohani belongs to Iran’s main conservative clerical association, not its reformist antipode. While he has become the standard bearer for the Islamic Republic’s “modern” (or “pragmatic”) right, with considerable support from the business community, his ties to Khamenei are also strong. After Rohani stepped down as secretary of Iran’s Supreme National Security Council in 2005, Khamenei made Rohani his personal representative on the Council.
Backing Rohani was thus an unlikely way for Iranian voters to demand radical change, especially when an eminently plausible reformist was on the ballot—Mohammad Reza Aref, a Stanford Ph.D. in electrical engineering who served as one of reformist President Mohammad Khatami’s vice presidents. (Methodologically-sound polls showed that Aref’s support never exceeded single digits; he ultimately withdrew three days before Iranians voted.) The outcome, moreover, hardly constituted a landslide—not for Rohani and certainly not for reformism: Rohani won by just 261,251 votes over the 50-percent threshold for victory, and the parliament elected just one year before is dominated by conservatives.
The other explanation for Rohani’s success embraced by American elites cites it as proof that U.S.-instigated sanctions are finally “working”—that economic distress caused by sanctions drove Iranians to elect someone inclined to cut concessionary deals with the West. But the same polls that accurately predicted Rohani’s narrow win also show that sanctions had little to do with it. Iranians continue to blame the West, not their own government, for sanctions. And they do not want their leaders to compromise on what they see as their country’s sovereignty and national rights—rights manifest today in Iran’s pursuit of a civil nuclear program.
The Iranian Challenge
Iran’s presidential election and the smooth transfer of office to Rohani from term-limited incumbent Mahmoud Ahmadinejad stand out in today’s Middle East. Compared to Afghanistan, Bahrain, Egypt, Iraq, Jordan, Lebanon, Libya, Palestine, Syria, and Tunisia, the Islamic Republic is actually living up to former U.S. President Jimmy Carter’s description of Iran as “an island of stability” in an increasingly unsettled region. And compared to some Gulf Arab monarchies, where perpetuation of (at least superficial) stability is purchased by ever increasing domestic expenditures, the Islamic Republic legitimates itself by delivering on the fundamental promise of the revolution that deposed the last shah thirty-five years ago: to replace Western-imposed monarchical rule with an indigenously generated political model integrating participatory politics and elections with principles and institutions of Islamic governance.
“Partnering with Tehran would require Washington and its friends in London and Paris to accept the Islamic Republic as the legitimate government of a fully sovereign state with legitimate interests.”
These strengths have enabled the Islamic Republic to withstand sustained regional and Western pressure, and to pursue a foreign policy strategy likely to reap big payoffs in 2014. This strategy aims to replace American hegemony, regionally and globally, with a more multi-polar distribution of power and influence. It seeks to achieve this by using international law and institutions, and by leveraging the Islamic Republic’s model of participatory Islamist governance, domestic development, and foreign policy independence to accumulate real “soft power”—not just with a majority of Iranians living inside their country, but (according to polls) with hundreds of millions of people across the Muslim world and beyond, from Brazil to China and South Africa. Such soft power was on display, for example, in the last year of Ahmadinejad’s presidency, when, during a trip to China, he won a standing ovation from a large audience at Peking University, where a representative sample of next-generation Chinese elites showed themselves deeply receptive to his call for a more equitable and representative international order.
In the current regional and international context, the West is increasingly challenged to come to terms with the Islamic Republic as an enduring entity representing legitimate national interests. In Tehran, the United States and its European allies could have a real partner in countering al-Qa’ida-style terrorism and extremism, in consolidating stable and representative political orders in Syria and other Middle Eastern trouble spots, and in resolving the nuclear issue in a way that sets the stage for moving toward an actual WMD-free zone in the region. But partnering with Tehran would require Washington and its friends in London and Paris to accept the Islamic Republic as the legitimate government of a fully sovereign state with legitimate interests—something that Western powers have refused to accord to any Iranian government for two centuries.
President Obama’s highly public failure to muster political support for military strikes against the Assad government following the use of chemical weapons in Syria on August 21, 2013 has effectively undercut the credibility of U.S. threats to use force against Iran. On November 24, 2013, this compelled an American administration, for the first time since the January 1981 Algiers Accords that ended the embassy hostage crisis, to reach a major international agreement with Tehran—the interim nuclear deal between Iran and the P5+1—largely on Iranian terms. (For example, the interim nuclear deal effectively negates Western demands—long rejected by Tehran but now enshrined in seven UN Security Council resolutions—that Iran suspend all activities related to uranium enrichment).
But recent Western recognition of reality is still partial and highly tentative. The United States and its British and French allies continue to deny that Iran has a right to enrich uranium under international safeguards. They also demand that, as part of a final deal, Tehran must shut down its protected enrichment site at Fordo, terminate its work on a new research reactor at Arak, and allow Western powers to micromanage the future development of Iran’s nuclear infrastructure. Such positions are at odds with the language of the interim nuclear deal and of the Nuclear Non-Proliferation Treaty (NPT). They are also as hubristically delusional as the British government’s use of the Royal Navy to seize tankers carrying Iranian oil on the high seas after a democratically-elected Iranian government nationalised the British oil concession in Iran in 1951—and as London’s continued threat to do so even after the World Court ruled against Britain in the matter.
If Western powers can realign their positions with reality on the nuclear issue and on various regional challenges in the Middle East, Iran can certainly work with that. But Iranian strategy takes seriously the real prospect that Western powers may not be capable of negotiating a nuclear settlement grounded in the NPT and respectful of the Islamic Republic’s legal rights—just as Britain and the United States were unwilling to respect Iran’s sovereignty over its own natural resources in the early 1950s. Under such circumstances, more U.S.-instigated secondary sanctions that illegally threaten third countries doing business with Iran will not compel Tehran to surrender its civil nuclear program. Rather, Iran’s approach—including a willingness to conclude what the rest of the world other than America, Britain, France, and Israel would consider a reasonable nuclear deal—seeks to make it easier for countries to rebuild and expand economic ties to the Islamic Republic even if Washington does not lift its own unilaterally-imposed sanctions.
“Continuing hostility toward the Islamic Republic exacerbates America’s inability to deal with popular demands for participatory Islamist governance elsewhere in the Middle East.”
Likewise, Iranian strategy takes seriously the real prospect that Washington cannot disenthrall itself from Obama’s foolish declaration in August 2011 that Syrian President Bashar al-Assad must go—and therefore that America cannot contribute constructively to the quest for a political settlement to the Syrian conflict. If the United States, Britain, and France continue down their current counter-productive path in Syria, Tehran can play off their accumulating policy failures and the deepening illegitimacy of America’s regional posture to advance the Islamic Republic’s strategic position.
How Will the West Respond?
Coming to terms with the Islamic Republic will require the United States to abandon its already eroding pretensions to hegemony in the Middle East. But, if Washington does not come to terms with the Islamic Republic, it will ultimately be forced to surrender those pretensions, as it was publicly and humiliatingly forced to do in 1979. Moreover, continuing hostility toward the Islamic Republic exacerbates America’s inability to deal with popular demands for participatory Islamist governance elsewhere in the Middle East. Less than a month after Rohani’s election, it was widely perceived that the United States tacitly supported a military coup that deposed Egypt’s first democratically elected (and Islamist) government. The coup in Egypt hardly obviates the fact that, when given the chance, majorities in Middle Eastern Muslim societies reject Western intervention and choose to construct participatory Islamist orders. Refusing to accept this reality will only accelerate the erosion of U.S. influence in the region.
The United States is not the first imperial power in decline whose foreign policy debate has become increasingly detached from reality—and history suggests that the consequences of such delusion are usually severe. The time for American elites to wake up to Middle Eastern realities before the United States and its Western allies face severe consequences for their strategic position in this vital part of the world is running out.
About the Authors
Flynt Leverett and Hillary Mann Leverett are authors of Going to Tehran: America Must Accept the Islamic Republic of Iran (New York: Metropolitan, 2013), which has just been released in paperback, with a new Afterword. They had distinguished careers in the U.S. government before leaving their positions on the National Security Council in March 2003, in disagreement with Middle East policy and the conduct of the war on terror. They teach international relations, he at Penn State, she at American University.
Source: The World Financial Review
Unless you’ve been in an underground bunker for the last month, you’d have heard that the Ukraine has gone topsy-turvy lately.
They seem to have escaped one old Soviet Union, only be reeled in by a new Soviet in the EU. There is also the problem of organized crime syndicates who have overrun the country.
Understanding the country’s recent history and following the money is important if you want to see which way the wind is blowing in Kiev…
Stalin and Krushchev Wanted Ukraine
For most Europeans, Ukraine is a gas transport corridor for bringing expensive Russian gas to Europe and Ukraine either overcharges Gazprom for gas transit fees, or does not pay Gazprom for the gas it takes for national consumption.
This Russian-Ukrainian gas game occasionally tips into gas embargoes – hitting consumers further down the line. As a geopolitical bargaining chip, conversely, Ukraine had considerable import - and weight – during the Cold War period which tapered off in 1989-91. Relatively quickly, Russia withdrew “nearly all” of its nuclear-tipped missiles, atomic warheads and nuclear military equipment and component inventories from Ukraine, in the 1990s.
That said, Ukraine is listed by human rights and corruption watchdog NGOs as one of the most corrupt countries in the world, tied with Bangladesh, Cameroon, the Central African Republic and Syria. Its postwar history following the defeat of Nazi Germany is a tragic story of Soviet megalomania, paranoia and oppression. The Nazi Germans probably killed about 15% of the total population, but about another 600,000 Western Ukrainians were arrested between 1944 and 1952, one-third executed and the remainder imprisoned in Soviet gulags or exiled to the eastern Soviet empire. Among their crimes was “non-performance” in agricultural output.
Administered by the rising political star and soon-to-be rival of Joseph Stalin, Nikita Khruschev, firstly in eastern Russian-speaking Ukraine, the kolkhoz collective-farm system was operated by chiefs selected by Khruschev. He empowered them to expel residents who “under-performed”. The kolkhoz chiefs quickly turned this into a racket protection and vendetta system for expelling their personal enemies, and the weak, the old and other “misfits”. Well over 10,000 were exiled to the eastern parts of the Soviet Union. For Khruschev, this was a highly effective policy which he recommended it for adoption across the USSR to Stalin, despite it periodically resulting in wide-area famines.
Similar to the “agro-towns” attempted by Ceaucescu of Romania, Khrushchev further destabilized Ukraine’s slowly recovering agricultural output with his scheme for population regrouping, which he later applied in Russia when he became Praesidium chief on the death of Stalin, following a classic Mafia-style power struggle with NKVD chief Beria. Beria was shot and killed with five of his associates by order of Khrushchev in Dec 1953. One of Beria’s proposed post-Stalin reform ideas was to liberate either or both East Germany and Ukraine, in exchange for cash payment by the West
Crime Syndicates want Ukraine
On the surface, mainstream media tells us today’s conflict in the Ukraine pitches the Russian-speaking half of the country in the east (where ailing president Yanukovich’s main support base is) against the more pro-Western, and alleged pro-EU, Ukrainian-speaking half in the west (where imprisoned Yulia Tymoshenko’s main support base is). More precisely, the Ukraine’s rapidly-deteriorating economic situation reflected by rapidly-rising interest rates on its sovereign debt bonds and Fitch’s recent downgrade, and its near-civil war street rebellion have reinforced its organized crime syndicates. Its organized criminals, and their enemies-and-allies in Russian, Bulgarian, Romanian and other east European organized crime syndicates, are vying for control of the State itself, to widen and deepen their lucrative activity.
The past week has seen President Yanukovych accept the resignation of Prime Minister Mykola Azarov and his cabinet, repeal anti-protest laws, provide an amnesty to detained protesters, and offer senior government jobs to the opposition – offers that were rejected. Moscow for its part has threatened it may hold back some or all of a promised Ukrainian bond-bailout package and a promised cut in gas prices for Ukraine until a new government is formed. The gas price cut and the loans, totalling $15bn (11 bn euros) were agreed in December, and widely seen as rewarding Yanukovich for Kiev’s rejection of an EU associate country deal for Ukraine.
Ukraine is one of six post-Soviet nations – along with Belarus, Moldova, Azerbaijan, Armenia, and Georgia – to be invited to cooperate with the EU within a new ‘multilateral’ framework that is high on promises but slim on content. The framework seeks visa-free travel, better human rights, more democracy, and respect for the principles of the market economy and sustainable development – so say the EU websites, but the single most important economic content is a trade pact aimed at cutting tariffs and taxes, which are in any case decreasing on the Ukrainian side due to its membership of the WTO since 2009. Main EU exports to Ukraine include medicine, motor vehicles, mobile phones and other manufactured goods, while main EU imports were of low to mid-value: iron and steel products, vegetable oils, ferro-nickel ores, iron ores and crude oil.
Acting long before the Ukraine’s membership of the WTO, or the 2008 financial crisis – both of which spurred and favoured crime syndicate integration in east Europe, Russia and the EU – the present number of organized crime groups operating in eastern Europe is estimated at about 3,600 with each profiting from such prosaic products as household detergents, to fake medecines, human trafficking, prostiution and the Ukrainian favorites of hard drugs and firearms.Rob Wainwright, director of the EU’s crime-fighting agency, told the Financial Times in June 2013 that only concerning Europe’s black market in counterfeit foodstuffs, fake pharmaceuticals and substandard machine parts, this doubled in value to about €2bn since 2008.
Arms for Drugs and Arms for Cash
From, at latest 2002, US drug enforcement and security agencies warned the Bush administration of the Kiev-Tel Aviv-New York “Axis” of organized crime operating drugs-for-arms trades worldwide. This syndicate particularly focuses South American-source cocaine supplied by Colombia’s FARC and other Andean country crime entities, and Ukraine-source weapons and military equipment. Ukraine’s geographic role and location as a “window to the southern states” of the ex-USSR, makes it highly favoured for operating drugs-for-arms trades, today. Land-route heroin from Afghanistan, South American cocaine and Russian AK47s are the hard currencies featured by this trade.
Godfather of the AK47: Ukrainian Mikhail Kalashnikov.
Ukraine’s front-line status in the Cold War and its own arms-making industries made the country a major source for Russian licit and illicit arms exports, and Soviet-era materiel is still widely available. This ranges from the “iconic” AK47 rifle through to mines, grenades and military explosive-pyrotechnic devices, to night-sighting and communications equipment, and artillery pieces through the low-end range of 35mm-105mm, to also-iconic Soviet 72-ton T72 tanks, a highly depressed market where prices can be as low as scrap value only – about $3.50 per kilogram of weight.
Western security analysts, preferring not to have their names published, also point out that Ukraine is a “wonderland” of nuclear civil-military crossover materials and ordnance. Following the 1986 Chernobyl meltdown, then the collapse and break up of the USSR in 1989-91, they say that large amounts of unaccounted-for nuclear fuel rods, wastes and nuclear military components exist in the country. They also underline the increased technological sophistication of ex-Soviet national mafias and their Middle Eastern opposite numbers, able to produce “binary nuclear” weapons, from nuclear and non-nuclear components, transported separately to reduce detection for final re-assembly when required.
Ukraine’s now accelerating political destabilization creates a classic poker-game challenge for Vladimir Putin at this time. He can act to prevent the country “seceding to the West’, or being partitioned into its western and eastern parts.
Whether Putin clamps down or lets the country fall apart, or the domestic power struggle inside Ukraine continues with no clear winner, the transition interval will certainly feature action by organized crime to further and deepen its already-strong foothold.
The New Wave of Financial Instability…
Global stocks were hammered on Friday for a second straight day on news of a slowdown in China and turbulence in emerging markets. The Dow Jones Industrials suffered its worse drubbing in more than two years, tumbling 318 points on Friday to end a 490 point two-day rout. Emerging markets currencies were whipsawed by capital flight as foreign investors fled to the safety of U.S. Treasuries. Turkey’s lira and the Argentine peso were particularly hard hit setting record lows in the 48 hour period. The scaling back of the Fed’s $85 billion per month asset purchase program, called QE, has altered the dynamic that made emerging markets the “engines for global growth”. The policy reversal has triggered a selloff in risk assets and sent EM currencies plunging. Here’s a summary from Bloomberg:
“The worst selloff in emerging-market currencies in five years is beginning to reveal the extent of the fallout from the Federal Reserve’s tapering of monetary stimulus, compounded by political and financial instability.
Investors are losing confidence in some of the biggest developing nations, extending the currency-market rout triggered last year when the Fed first signaled it would scale back stimulus. While Brazil, Russia, India, China and South Africa were the engines of global growth following the financial crisis in 2008, emerging markets now pose a threat to world financial stability.” (“Contagion Spreads in Emerging Markets as Crises Grow,” Bloomberg)
Paradoxically, Bloomberg editors blame the victims of the Fed’s failed policy for the current ructions in the markets. In an article titled, “What’s Behind the Emerging-Market Meltdown” the editors say,”emerging-market governments … should recognize that this week’s financial-market turmoil was, to varying degrees, their own fault.” … “the best way for emerging-market governments to restore confidence would be to improve their policies.”
Logically, one would assume that the editors would throw their support behind capital controls or other means of stemming the destructive flow of speculative capital into domestic markets. But that’s not the case. What the editors really want, is policies that trim deficits, slash public spending, and allow foreign investors to continue to wreak havoc on vulnerable economies that follow their free market diktats. The article is a defense of the status quo, of maintaining the same ruinous policies so that profit-taking can continue apace.
The Fed was warned early on that its uber-accommodative monetary policy was spilling over into emerging markets and creating conditions for another financial crisis. Take a look at this excerpt from an article in Bloomberg back in 2010 where Nobel prize winning economist, Joseph Stiglitz, explicitly warns the Fed of the dangers of QE.
“The U.S. Federal Reserve’s plan to boost purchases of bonds poses “considerable” risks by increasing capital inflows to emerging markets, Nobel Prize- winning economist Joseph Stiglitz said in Santiago today.
“All this liquidity that they’re creating is not going back to grow the American economy and is going to Asia and other emerging markets where it’s not wanted,” Stiglitz said…..Increased capital inflows could cause emerging market currencies to appreciate and could create asset bubbles, he said.” (“Stiglitz Says Fed Stimulus Poses `Considerable’ Risks for Emerging Markets,” Bloomberg, Dec 2010)
Events have unfolded exactly as Stiglitz predicted they would, which means the Fed is 100% responsible the carnage in the stock and currencies markets.
The policy has pumped nearly “$7 trillion of foreign funds” into EMs since QE was first launched in 2009. According to the Telegraph’s Ambrose Evans-Pritchard, “much of it “hot money” going into bonds, equities and liquid instruments that can be sold quickly….Officials are concerned that this footloose capital could leave fast in a crisis, setting off a cascade effect,” Pritchard adds ominously.
Whether last week’s bloodbath was just a prelude to a bigger crash is impossible to say, but it is worth noting that the Fed has only reduced its purchases by a mere $10 billion per month while still providing $75 billion every 30 days. That suggests that markets will probably face greater turmoil in the months ahead. Check out this clip from USA Today:
“Emerging markets need the hot money but capital is exiting now,” says (Blackrock’s Russ) Koesterich. “What you have is people saying, ‘I don’t want to own emerging markets.’…
The bigger fear is if the current crisis in currency markets morphs into a full-blown economic crisis and leads to financial contagion, says Matthias Kuhlmey, managing director of HighTower’s Global Investment Solutions.
“The currency story is fascinating and can be a slippery slope – be cautious,” says Kuhlmey, adding that the Asian crisis in the summer of 1997 that started with a sharp drop in the value of Thailand’s baht, turned into a broader economic crisis that engulfed Indonesian, South Korea and a handful of other countries. It also rocked financial markets.” (“Why emerging markets worry Wall Street,” USA Today)
So, is this the Big One, the beginning of the next financial crisis?
It’s too early to say, but investors and analysts are worried. Fed tightening (via “taper”) will be felt in markets around the world. The trouble in emerging markets will intensify deflationary pressures in the Eurozone and put a damper on China’s growth. Slower global growth, in turn, will create balance sheets problems for undercapitalized and over-leveraged banks and other financial institutions which will increase the probability of another Lehman Brothers-type default.
According to Reuters, a normalizing of interest rates in the US, (which most analysts expect) “could cut financial inflows to developing countries by as much as 80 percent for several months. In such a case, nearly a quarter of developing countries could experience sudden stops in their access to global capital, throwing some economies into a balance of payments or financial crisis, the Bank said.” (“Rout in emerging markets may only be in Phase One,” Reuters)
Clearly, the potential for another financial meltdown is quite real.
For more than four years, the Fed has buoyed stock prices and increased corporate margins through massive injections of free cash into the financial markets. Now the Central Bank wants to change the policy and ease its foot off the gas pedal. That’s causing investors to rethink their positions and take more money off the table. What started as a selloff in emerging markets could snowball into a broader panic that could wipe out the gains of the last four years.
The Federal Reserve is entirely responsible for this new wave of financial instability.