18 MAY 2014
Jim Willie CB,  “the Golden Jackass”

 


Special Report #1

NATO SPLIT & RUSSIAN ARMS DEALS

The NATO Alliance is in great danger of fracturing, from the distress on the Ukraine front, and from ongoing military weapon sales with supply lines to both Russia and China. The former's technology and the latter's deep pockets have resulted in uncomfortable commercial ties which will be difficult to cut. The economics of war on the European corporate stage will work to undo the bellicose American Empire. The effect will be felt on the USDollar, the USTreasury Bond, with the disruptive introduction of gold-backed currencies and the installation of Gold Trade Settlement. The isolation of the United States comes in big strides.

## NATO SPLIT

◄$$$ A DEEPLY FLAWED STRATEGY IS BEING USED AGAINST RUSSIA... MOBILIZING WESTERN EUROPE BEHIND THE WEAK NATO FLAG STRIKES OF DESPERATION... VILIFYING RUSSIA, THE GREAT SUPPLIER OF ENERGY AND METALS, SEEMS LIKE A TRULY STUPID PLAN GUARANTEED TO FRACTURE THE EUROPEAN ALLIANCE... THE NATO CAUSE FOR WAR IS EMPTY AND BARREN ON TWO FRONTS, THE FIRST BEING THE BUDAPEST MEMORANDUM TO PROTECT UKRAINE, THE SECOND BEING THE SUPPOSED RESPONSE TO RUSSIAN AGGRESSION... THE ORIGINAL ACT WAS VIOLENT COUP D'ETAT BY AVOWED FASCISTS SUPPORTED BY LANGLEY AND SOROS, THE HIDDEN NAZI STRONGHOLDS. $$$

The CIA flies no flag; their uniforms show no markings (except high rank); their activity usually after 10pm on USMilitary bases; narcotics is their currency. The NATO nations fly their plain blue flag, the nations on the battlefield usually to display their national markings for identification. The only flag lacking in the coordinated fascist military maneuvers was the Vatican, always well hidden when matters of Nazis, Satanism, Gold & Silver transfers, or child sacrifice are concerned on banker altars. The CIA with its Blackstone storm troopers, are well coordinated with the mercenaries financed by Soros. The hidden ugly fact is that the Pentagon does not share the desire to engage Russia in war. Their allegiances are in conflict. Even their two intelligence apparatuses are at odds. This is the Langley war, done in covert nasty tones. Be sure to know that the mercenaries are hired by shell corporations run out of off-shore banking centers. They bear no liability or culpability to their actions. Their murders are part of the din of war. Not one single prosecution was brought against Blackstone for hundreds of Iraqi civilian murders, like from helicopter contests. For more information on George Soros, see the following stories.

    


The Soros Fund Management ties together much of his so-called philanthropy, mostly destructive profitable subterfuge. George Soros (born as Gyorgi Schwartz) is a principal member of the Council on Foreign Relations, a prestigious group which promotes global totalitarianism under its watchful leadership and tight control of USGovt foreign policy. The CenterUA is involved all through Ukraine, funded in part by the USAID in the USDept State. The Soros group funding in mercenary activity is funneled through the Intl Renaissance Foundation and the Open Society Institute, which both openly call for another Orange Revolution. They all involve mercenaries, as in killers for hire. In almost all his initiatives, George Soros finds $billions in benefits directed toward his corporations. He is an elite fascist investment banker extraordinaire with scattered scummy programs underway across the world, earning his globalist points. The confusion caused can be noted in the urgent call by Soros for Germany under Angela Merkel to enlist partnership with Russia in the renaissance of Ukraine. By its rebirth, Soros means some kind of pro-Western fascist oligarchy with criminals and rogues at every post. Merkel has not complied, but rather works toward Russian sanctions. See the New American article (CLICK HERE), the Info Wars article (CLICK HERE), and the Tavern Keepers article (CLICK HERE). Thanks to EuroRaj for some research.

The main European client states will never make any firm commitment to a new war with the new enemy of Russia. Their economic and business ties to Russia run too deep, and pre-date those with the North Americans. No firm role will come from Europeans in triggering even a tactical nuclear war, let alone a trade war with Russia. Even after impasse on the military battle field, no alignment should be expected by European nations against the Russian Bear, like in a freshly concocted New Cold War. Except for Germany, all larger NATO fighting force members emanate from a broken bankrupt insolvent home ground reeking of disarray. Their higher priorities lie at home, to restore their economies, their banking system, and their sovereign bond structures. None of the NATO nations, let alone the United States, is in a financial position to promote a war. Besides, the US is not promoting the war. Rather, the Langley folks offer this war, funded by narcotics money. Watch as Putin and the Kremlin exhibit great patience, a steady hand, and firm commitment to come out of the conflict as peacekeepers, taking the high ground. The US & remaining hostile NATO members will be revealed as hostile vile plunderers intent on pillage, with big Western corporate banners barely hidden. Scorched economic earth is their game, hardly seen as honorable or worth following.

The biggest difference between the US perspective and the European perspective has to do with the Russian threat. The US sees the Russians as forming an alliance with China. Together with Russian commodity resources led by energy, and Chinese newfound industrial might, the concept of a Eurasian Trade Zone threatens the King Dollar and the American Empire. It even threatens to subordinate the British into a support role in Yuan bond trade as a Gazprom client. The Europeans merely perceive the change in aligning East rather than West, as Europe itself serves as the grand prize. The inclusion of Europe is the key master stroke to form the Eurasian Trade Zone itself. The message is clear, that with the rise of Gazprom and Russian oil, any team building leaves the United States and its British controllers in the dark backwaters of the global markets.

Isolation awaits the United States, far more than for the United Kingdom. Isolation will be the punishment for running a deeply corrupt currency regime with the embedded machinery to grant themselves $trillions in unearned wealth. Isolation will be the punishment for relying upon a powerful aggressive military for defending the USDollar and assuring commodity supply. Isolation will be the punishment for abusing the bank SWIFT system and trying to paint as terrorists any nation wishing to operate outside the USDollar sphere. The Asians and soon the Europeans will throw their full weight behind an honest system for trade, founded in the Gold Trade Standard. The US Global Gestapo cannot and will not enlist NATO full support to oppose any fabricated Russian mortal threat. Cold War will not be revived. It is not a viable platform to harmonize Western Europe against Russia. Besides, Russia is not exhibiting the hostility. The West is. The US & NATO appear to have a truly fascist nefarious destructive motive to destroy Ukraine in order to establish a firewall and impassible land route. It will not work. Cooler heads will prevail. Ukraine will sink of its own corruption, chaos, and weight. Russia will extend commercial ties in a constructive manner with European trade partners. The United States will be left out in the cold, the violent bully no longer with Full Spectrum Dominance militarily. The British will settle for Yuan Bond trade crumbs, and join the trade zone holding its nose. Thanks again to pepe Escobar for some thoughts, which the Jackass ran with a little farther.

For further exposure of the White House Nazis, see the NEO Journal article (CLICK HERE). They killed Kennedy, installed Nixon, introduced Kissinger to the State Dept, brought Brzezinski in to start the NSA, shredded the Bretton Woods gold accord, stole the Fort Knox gold, orchestrated 911 events, and shredded the Constitution. They not only hired Von Braun (at NASA) on the positive side with rocket science, but also Josef Mengele (at CIA) with human torture, robot training, and genetic controls. The Fort Dietrich USArmy Bioweapons Lab continues in the spirit of the Mengele work. Many nasty nazis were never killed or executed, just protected or hired. From 1970 to 2000, every fascist regime in South America and Latin America was given full support, under the guise of anti-communist. It means the end of our country as we knew it, and the dismantled work of our Founding Fathers. The Jackass never uses the term Nazi lightly, but rather with precise reference to the cabal fought on the military fronts and the banking centers.

The American citizens need an urgent wake-up call on how the Nazis found a home in the United States and took full control in the 1970 decade, the NSA becoming the Gestapo brain trust, in competition with all other intelligence centers of the USGovt. The Nazis raided the Eastern European central banks of their gold in the 1930 and 1940 decades, just like they did Fort Knox in the USA under the Clinton-Rubin Admin, just like in Iraq under cover of war, just like in Libya, just like in Ukraine in recent years. It is their calling card Modus Operandi that not 2% of Americans comprehend. Racial purity is another calling card of the Nazis, which continues through viruses delivered from vaccines.

◄$$$ OLD EUROPE IS LOOKING EAST, AS IT WISHES FOR CONTINUED COMMERCE, NOT THE US-LED WAR.... AFTER FIVE YEARS OF FINANCIAL TURMOIL, EUROPE WISHES TO FIND REMEDY THROUGH CONSTRUCTIVE MEANS SUCH AS COMMERCE... THE EAST TAKES THE LEAD. $$$

The Kremlin has effectively deflected the sanctions so far, as Europe does not follow the rally cry with stern commitment. It is more like obedient nods. The ball is clearly in Obama's court. The US predicament is three-fold: a) Old Europe is not rallying against Russia with which it has deep and extensive economic ties. b) The choice narrows down to the US opting for a coalition of the willing, largely comprising the countries of New Europe. c) In such a limited coalition, the US will be the sole provider of security and must bankroll the enterprise of keeping Ukraine afloat, which is far beyond the American capacity today. See the Indian Rediff article (CLICK HERE). Official statements and common sense analysis tend to overlook a big avenue. Narco money is causing problems and working its agenda with war in Europe's eastern yards. The resentment is coming to the surface. Look for terrorist events in Europe next, blamed on Slavic sources, but coming from Langley, the usual source.

◄$$$ MERKEL IS A LAME DUCK IN GERMANY... SHE HAS PUT HER SUPPORT BEHIND THE WEST, THE EUROPEAN UNION, AND THE OBAMA PUPPET REGARDING THE RUSSIAN SANCTIONS... POWERFUL PLAYERS HAVE DIRT ON HER... INTERNAL PRESSURES LINKED TO GERMAN CORPORATE TIES TO RUSSIA HAVE TURNED STURDY, CONSTANT, AND ACUTE... THE MERKEL TENURE AS GERMAN CHANCELLOR IS DONE. $$$

The departure of Angela Merkel has been decided, the timing not yet. She has consistently and dutifully sided with the USGovt and NATO banker and war room factions, turning her back on domestic German commercial interests. Those interests lie in the East, principally with Russia. The Western press chooses never to cite the longstanding and growing connections between Germany and Russia, like with heavy rail lines, like with LNG gas ports, like with countless German corporations conducting trade in Russia. The Deutsche Bank fracture and prosecution should serve as notice that Germany no longer offers support for the Anglo-Americans, or the European Unionists. D-Bank has been turned on its old partners. My best source from Central Europe indicates that the USGovt's NSA has some serious dirt on Merkel, forcing her firm loyalty. He said, "They have something on her. She is effectively out of a job already. Her undying Western support has become outmoded and does not serve well the German people. The timing has yet to be determined for her exit." When it comes, the German state will be politically prepared to flip eastward.

Permit the Jackass to speculate. As preface, the leaked Snowden NSA files might have produced useful information that will force Merkel out, and soon. The NSA files cut both ways! My guess is the dirt on Angela could be related to Deutsche Bank and the foundation to the EMU creation with FOREX derivatives improperly arranged by London bankers. It could also be related to significant payoffs to Merkel from D-Bank conduits that cooperated with narco money laundering operations. Recall that Ramstein is a major NATO base on German soil, used for narcotics distribution with Turkey's Incirlik after 10pm. It could also be related to some nasty underlayment from Vatican ties to Stasi, her old East German roots. The presence of CIA-tool Sarkozy in France and Stasi-rooted Merkel in Germany has never been fully explored. Chancellor Merkel finds herself in an awkward and untenable position. Merkel is between a rock (NATO loyalty) and a hard place (Russian dependence in Europe). She senses the premature end to her tenure, despite re-election. Her support of EU and NATO and IMF is her downfall. She represents the global cabal, not her people.

◄$$$ PUTIN IS REINVENTING GEOPOLITICAL WARFARE, USING NON-LINEAR WAR METHODS WITH TRUMP CARDS... OLDER ALLIANCES OF THE WEST NO LONGER ARE RELIABLE AND FIRM... FINANCIAL AND COMMERCIAL FACTORS ARE NULLIFYING THE SANCTIONS... THE BRICS NATIONS HAVE VETOED RUSSIAN SANCTIONS... COLD WAR TACTICS WILL NO LONGER SUCCEED... MANY ARE THE NEW FACTORS IN HIDDEN CONFLICT BETWEEN EAST AND WEST, AS THE AMERICAN DOWNFALL IS MORE WIDELY RECOGNIZED. $$$

The Kremlin has its own cousin approach to war. Consistent with the Chinese Sun Tzu, the Russian approach might be Non-linear War, a term used by Vladislav Surkov, a Putin political advisor. He specializes in the system of managed democracy that has dominated Russia in the 21st century. As the Kremlin faces down the West in a prolonged standoff, it has gambled that old alliances like the EU and NATO mean less in the 21st century. More important are the new commercial ties the Kremlin has established with Western companies, such as Exxon, BP, Mercedes, and BASF, while integrating energy giants Gazprom and Rosneft. Under the floors, many Western countries have quietly welcomed significant corrupt financial flows from the post-Soviet region, having grown to be part of their troubled economic models. As expected by the Jackass, financial considerations undercut sanctions, curbing their effect. Moreover, by stalling at every challenge and confrontation, the Kremlin has revealed the US/NATO side as aggressors.

Non-linear War is the means by which Russian firms and oligarchs use their minority stake in globalization to grow from an initial position of relative weakness. They deploy the same tactics in military strategy, building a key advantage like with missiles or radar jamming. Nasty methods are used to gain control. For all the talk of Russian isolation, the BRICS nations have actually been subdued in their criticism of the annexation of Crimea, with the Kremlin most appreciative of both China and India for their prudence, finesse, and understanding. The new battle is for reshaping globalization and forming a viable working fair trade zone. If leverage from Gazprom is required, so be it. If defiance from Exxon is required, then so be it. It is naive at best and foolhardy at worst to assume the West will prevail in this new battle, relying upon the same old tired formula used in the Cold War. The attempts to create yet another boogeyman (Putin) might actually expose the US/NATO for their criminal violence and evil motives. The tables have turned, as the US promotes central bank planning, Politburo style of management, and calls to war unheard. The New Russia and the New China have torn the old formula apart. The geopolitical stage has become a chess board, and the US has few powerful pieces along with easily fractured allies. See the Foreign Policy article (CLICK HERE)

◄$$$ PUTIN DISPLAYS UKRAINE CHESS MASTERY... TIME IS ON HIS SIDE, AS UKRAINE IS SINKING... THE UKRAINE ZONE WILL SINK FROM INSOLVENCY, DEEP DEBT, CORRUPTION, GOLD RAIDS, GUTTING OF FUNDS, CHAOS, AND ECONOMIC DISLOCATION... NEXT BY THE IMPOSED IMF BAILOUT STRICTURES (ANOTHER POISON PILL)... HIS CHECKMATE WILL WAIT. $$$

A preface is needed. The US war machine requires an enemy, whether Vietnamese, the Ayatollah in Iran, the Somalian warlords, the Chechens, the Taliban, the Moslem terror wrapped in Osama Bin Laden, the secretive terror in train stations, whatever. Exit the phony charade of Bin Laden, complete with resurrection after his 2005 death, his staged second death in same distant camp, the phony "Zero Dark Thirty" film (nazi film even nominated for an Oscar, called a documentary, more like fiction), the phony staged funeral at sea aboard the USS Vincent (despite nobody onboard being aware of Osama's body delivered). Enter the new boogeyman Vladimir Putin, who saw the pro-Russian regime (tattered and crooked as it was) come to an end in Kiev, and the new Maidan Fascist regime put in place with US & NATO support, reinforced by countless mercenaries. So Putin responded by capturing the Crimea, where the only Russian warm-water naval port is located. Doing so hardly makes Russia an aggressor in the limited theater.

The entire Ukraine battle zone has motive to create a firewall against the Gazprom Empire, an obstacle for the Eurasian Trade Zone in formation, and a blockade for the Russian Naval facility in Crimea. It will fail on all three fronts, mainly because Ukraine under the pro-West Maidan is insolvent, fractured, and already gutted by the Western brigand victors. As time passes, the next assault will come from the Intl Monetary Fund itself. For sure, all Ukrainians will feel in acute ways what the IMF has in store for them, regardless of location. It will not matter who is president if and when Kiev does not pay its US$2.7 billion energy bill to Gazprom. Witness yet another IMF poison pill, none of which worked in Europe. Neither will it work in Ukraine. Memories are gone of its failure in Greece. Western people are asleep on all the key Ukraine factors. All hail IMF, the great destroyer and relocater of wealth!

Time is not the friend to the West in Ukraine. All events unfolding are for the worse, whether on the banking front, the economic front, or just plain murder of protestors like in Odessa. Once again, Putin does not need to invade anywhere. He might rescue some eastern towns, or throngs of migrating pro-Russian natives. However, the best way to win Eastern and Southern Ukraine is to let them live within the new harsh regime and failed economy. The people across the nation will make life miserable for the NATO junta and its May 25th offspring to come. City after city will vote for independence, leaving a vacuum. The time soon comes for Kiev to require serious high volume cash infusions, not the piddly puny paltry IMF dole which is better described as self-serving mafia-style loans that lead to permanent indenture and bondage. As Pepe Escobar concluded, "Nobody in his right mind in the political midget European Union will be forthcoming. Nobody will want to rescue a failed state. And Kiev will have to beg, once again, for Moscow's help, the lender of first and last resort. Lao Tzu Putin is far from going to checkmate. He may, and will, wait. The exceptionalist empire [United States] will keep doing what it does best: foment chaos, even as sensible Europeans, Merkel included, try somewhat for appeasement. Well, at least Washington's prayers have been answered. It took a while, but they finally found the new bogeyman: Osama Bin Putin." See the Asia Times essay by Pepe Escobar (CLICK HERE).

My special colleagues pitched in. UrselD commented, "The First Rule you never break in The Art of War is do not go to war, but rather let your enemy destroy himself while you patiently watch." EuroRaj commented, "Putin has time on his hands, his biggest asset. Ukraine will self-implode if left to be managed by the present set of rulers and their Western handlers. The West has absolutely no long-term strategy whatsoever." The Jackass adds that in line with Sun Szu, DON'T show your moves in advance, DON'T go to battle with limited mercenary forces, DON'T be exposed with huge economic and financial weaknesses, DON'T expect allies to support if they are commercially captive to the enemy, and BE SURE that time is on your side. Oops, wrong on all! The strategy for the US/NATO side seem drawn up by a suicidal maniac with no vision of tomorrow except scorched earth. It is becoming well understood that Libya, Iraq, Afghanistan, and now Ukraine were all short-term raids and grand plunders, nothing more. In each case, either gold or oil or heroin was the prize. Look also at activity in the jewel port nation of Djibouti, which is strategic for control of the Suez Canal. See a fresh long detailed review of the Russian history in the Ukraine region on Zero Hedge under the pseudonym George Washington (CLICK HERE and HERE and HERE). See the list of GW works in index form (CLICK HERE).

◄$$$ OBSERVE A KEY ROCKEFELLER SPLIT BY PUTIN USING EXXON... THE PROJECTS BY EXXON CONTINUE LIKE BUSINESS AS USUAL, DESPITE THE RUSSIAN SANCTIONS... PUTIN HAS BEEN OPENLY HOSTILE TO ROTHSCHILD BANKS, IDENTIFYING THEIR SUBTERFUGE... A MAJOR SPLIT IS IN PROGRESS BETWEEN THE ROCKS AND THE ROTHS, THE CROWBAR HELD MASTERFULLY BY RUSSIAN PRESIDENT PUTIN... WATCH THE OIL ARENA FOR FURTHER INDICATIONS, FOR PRICING AND LEVERS LIKE KEYSTONE. $$$

Notice the continued Exxon Mobil projects in cooperation with Russia, like with Rosneft or Gazprom Neft. They are located in the Crimean peninsula, in the Arctic regions of Russia, and in Siberia along the Pacific Coast, like in the Sea of Okhotsk. The Rockefellers are the architects of the Petro-Dollar defacto standard, engineered with the Saudis on behalf of the major Western oil firms, of which Exxon Mobil is the lead player. With the fall of the US alliance with Saudi Arabia, the Petro-Dollar appears dead on arrival at the global intensive care ward. The Rockefellers must fill the void, must form a new alliance, and must partner with the next oil power, or else face obsolescence. The Rockefeller representative in Exxon has clearly sided with Russia.

The stream of harsh criticism lodged by Putin against the Rothschild bankers has been steady and constant. Even the old Chinese families, namely the White Dragon Family, have shared its objective of shutting down all but two Rothschild banks. One must conclude correctly that a forced split between Rockefellers and Rothschilds is in progress, with the Kremlin the main architect. Once again, Putin is the master chess player. Putin has divided the Rocks from the Roths, with more meat on this story in the oil arena. Watch the Keystone Pipeline decisions for a Rockefeller compromise, a truly difficult intrigue to decifer. The Team Obama barely seem capable at checkers, but they are accomplished at tossing grenades into crowded markets and populated villages. Don't blame Obama, since he is just the Langley puppet who occupies the White House and follows the teleprompter and shakes the hands of visiting dignitaries and lies before the press conferences on Benghazi, Mexican gun running, green energy corruption, and General Motors aid.

The West is run by fascists who are hellbent on destruction and war to promote peace and prosperity, in the biggest farce of Goebbels propaganda the world has seen in 70 years. The USGovt was seized when the Nazis killed Kennedy, installed Nixon, abrogated the Bretton Woods Gold Standard, continued the Cold War with the Soviet Union, and then perpetrated the 911 attacks. The Nazi banking HQs are the USFed, the Bank of England, the Vatican, and the Bank For Intl Settlements in Basel Switzerland. The hidden Nazi HQ Pillbox for a century or more has been the Vatican, the training ground for the 1930 German Nazis. Their new war is found in Ukraine. The Axis never defeated the Nazis. The German Military was defeated, but the key Nazi players, bankers, and scientists were all hired by London, New York, and WashingtonDC. That is quite another story, beyond the scope of the Hat Trick Letter.

◄$$$ FRANKFURT HAS ISSUED ITS FIRST DIM SUM CHINESE BOND, AS THE RACE IS ON IN EUROPE... IT IS THE FIRST GERMAN ISSUANCE OF A BOND BACKED BY CHINESE CURRENCY... THE BOND ATTRACTS IDLE YUAN SITTING IN BANKS (SOMEWHAT TRAPPED) THAT SEEK A VIABLE INVESTMENT USAGE, BUT ALSO FORTIFIES CHINESE COMMERCE... THE TRADE AND INVESTMENT RELATIONS ARE FIRMING BETWEEN GERMAN COMPANIES AND CHINESE MARKETS... SYMBIOSIS GROWS. $$$

The irony is thick, the timing flawless. While the increasingly weakened and foppish German Chancellor Merkel was spouting nonsense in her American lame leader cohorts, the German industrial base has revolted via their bank window. Merkel is out of touch, sitting on the wrong side of the table, soon to be dismissed. As China slowly loosens the grip on its Yuan currency, moves toward convertibility, sponsors Dim Sum Bond issuances, the investor community wants to own Yuan-based bonds. The sense is the RMB (renminbi) will rise and China is a good risk. The same cannot be said for the USDollar and Euro, their nations no longer a good risk (unless a share holder in a weapons contractor). The Yuan curency is coming to Germany in a big way. Frankfurt is joining London, Singapore, and Hong Kong in the fast moving market for bonds denominated in the Chinese currency. The flow undermines US control and USDollar dominance.

The Germany development bank KfW announced it was issuing a two-year bond with the volume of CNY 1 billion at the Frankfurt Stock Exchange. The event supports the Frankfurt bid to become a key offshore center for facilitating trade transactions and investments in renminbi. Chalk up another success in the drive by Beijing to internationalize its Yuan currency, no longer a tightly controlled currency. KfW is targeting institutional investors. The bank says it is issuing its Dim Sum Bond because of growing demand for the currency as a valued global asset, but also to support Frankfurt's drive to become a continental European hub for renminbi transactions.The Frankfurt-based bank is calling its RMB-backed bond the Goethe Bond in honor of the city's famous poet. Expect many more Goethe Bonds to come for major German corporations, which strong connections to China.

The Dim Sum Bonds (in Yuan terms) first hit the scene in 2007, and have proliferated. The SWIFT society reports the Yuan is among the top ten currencies for global trade usage in payments, overtaking the Swiss Franc to occupy position #7 in February. The Yuan will continue to climb that leader board. The Germans have given approval of the so-called Goethe Bonds in March, formally blessed by the Frankfurt Stock Exchange. The deal has another additional aspect. Frankfurt will become the first offshore clearing center for exchanging Euros for renminbi, which are needed for buying Dim Sum bonds. The move puts them in competition with London. The investment data firm Dealogic reports a sharp increase in the number of Dim Sum Bond issuers worldwide in 1Q2014. A record 35 offerings were done by companies including Caterpillar, British Petroleum, and Volkswagen. German construction equipment has long been the Chinese favorite, along with cars. Bond issuers are increasingly denominating their debt in RMB for a variety of reasons. First, there is a large pool of the currency lying around in banks seeking an investment destination, without the nuisance of moving it through restrictions. The funds seek a useful purpose, somewhat trapped. Companies with large businesses in China can use the RMB to help fund expansion. Take automakers selling cars in China. Volkswagen, BMW, and Ford all have financing operations lending RMB to eager Chinese consumers. See the German DW article (CLICK HERE).

## RUSSIAN ARMS DEALS

◄$$$ RUSSIA IS LOCKING DOWN THE MISTRAL HELICOPTER CARRIER MILITARY DEAL WITH FRANCE DESPITE USGOVT PRESSURES... THREATS OF PENALTY COSTS ON ONE SIDE, DESIRE TO FURTHER TRADE ON OTHER SIDE... EUROPE IS SHOWING SIGNS OF SPLITTING IN ITS SUPPORT, LEAVING BLACK OPS AND MERCENARIES FUNDED BY NARCO MONEY TO RUN ROUGHSHOD. $$$

The French Govt has announced that it will proceed with the EUR 1.2 billion (=US$1.6 bn) contract to supply Russia with two Mistral helicopter carriers. Apparently any canceled deal would harm Paris more than Moscow. Despite pressure from the USGovt, amazingly France refused to link the helicopter carrier deal to the US/EU pressure to comply with tougher Russian sanctions. A leaked comment came from a French official traveling with President Hollande in Azerbaijan. The contract was too big to cancel, and if France failed to fulfill the order, it would have been hit with penalties. The official said, "The Mistrals are not part of the third level of sanctions. They will be delivered. The contract has been paid, and there would be financial penalties for not delivering it. It would be France that is penalized. It is too easy to say France has to give up on the sale of the ships. We have done our part." French jobs are at stake. Behind the deal is a hidden desire to continue with Russia trade in a general sense, and not to anger the Kremlin unduly. The Russian defense ministry warned Paris in March that it would have to repay the cost of the contract plus additional penalties if it cancelled the deal. EU foreign ministers met in Brussels last week, in order to expand their bland vacant meaningless sanctions over the Russian defense on their border in Ukraine. The clownish NATO gathering added two Crimean companies and 13 people to the bloc's blacklist. See the Russia Today article (CLICK HERE).

On the backlash blowback side will be the death of the USDollar regime. The French ship deal is truly enormous news, indicating the NATO phalanx acting toward split is powerless. As time passes, the Europeans will side with Russia, which will come from commercial pressures. Furthermore, the Europeans will not wish to anger China, since Russia & China are joined at the hip. The US is joined to London (insolvent and low on gold), the Vatican (being exposed on many sides for financial and satanic corruption), and Israel (bonds weakening with West, ties growing with Gazprom). The US-UK Axis of Fascism is showing great strain. The French are a main supporting plank to the axis, but Sarkozy is long gone.

◄$$$ EUROPE REMAINS STUBBORNLY COMMITTED TO CHINESE MILITARY WEAPON DEVELOPMENT... EUROPEAN UNION STATES STRIKE LUCRATIVE MILITARY CONTRACTS WITH CHINA, IN EASY OVERRIDES OF THE EMBARGO... THE USGOVT IS GRADUALLY BEING IGNORED, OR GIVEN LIPSERVICE... WITH WEAPONS DEALS COMES A STRANGE COMMITMENT COMMERCIALLY AND UNSPOKEN WORD NEVER TO ATTACK. $$$

​The thought of attacking a nation who purchases your own weapons in large deals is ludicrous. The US-led war against Russia will fade in steps, from growing commercial ties, then later outright withdrawn battlefront support. Europe is actively involved in the military rise of China, approving $billion deals for the transfer of weapons, even working in dual-use technology cover. The sanctions cannot even enforce an arms embargo with roots from the 1989 Tiananmen Square response. China has a growing military machine. It has the world's second largest military budget at $132 billion, and serves as the fastest growing military market. In contrast, the USMilitary budget is a massive $495.6 billion for defense, more like aggressive offense, if Iraq, Afghanistan, Djibouti, Georgia, Syria, and Ukraine are considered. To be sure, the passing of many years would be required before the military balance is made equal in size. But that is not the point. The Russians possess strategic superiority in key weapon areas, like in supersonic Sunburn & Onyx missiles, and in aircraft radar jamming gear.

The Chinese have equal strengths in areas not thought of before, like in Electro Magnetic Pulse weapons and Stealth F-class fighter aircraft, which the Clinton Admin made possible by leaving the Sandia Lab doors open. The gaps in lost superiority make the difference in potential battles. The Old Guard of US alliances is nervous, like Japan, Qatar, and the Philippines, maybe even France. They could be sudden victims in a shift of power. These nations all know that they could be the first victim if the balance of power shifts. The Russian Military is far more sophisticated in electronics and key weapon systems, all likely to be shared with China and its deep pockets.

As with Chinese provision of consumer products, the West is reluctant to forego the opportunities to supply the rising Chinese Military. The European weapons merchants cannot resist the allure of Beijing's $billions. The EU Govts cannot resist the allure of continued jobs. French designed helicopters bolster the Chinese Air Force. British jet engines drive their fighter bombers and anti-ship strike aircraft. The German and French diesel engines provide the rudder to the Chinese Navy. The modernized Chinese Military relies heavily on its powerful new submarine fleet, which boasts state-of-the-art diesel engines designed by MTU Friedrichshafen of Germany. The Jiangkai-class Chinese warship deploys engines made by SEMT Pielstick, a French diesel engine manufacturer owned by German firm MAN Diesel & Turbo. The MAN firm has supplied about 250 engines to the Chinese Navy. Meanwhile, Airbus Helicopters and China's Avicopter (from AVIC conglomerate) signed a joint agreement in March for the production of 1000 new generation EC175/AC352 rotorcraft at the Elysee Palace in Paris, amidst full fanfare. Heads of state were present for the signing ceremony, Chinese President Xi Jinping and French President Francois Hollande, surely some champagne toasts. In addition, not left out, the Netherlands is behind EUR 18 million worth of accessories and components for Asian vessels of war. Lastly, the acquisition of a British-made Airborne Early Warning (AEW) platform for the latest Chinese surveillance aircraft will fortify their air force.

In fact, the role European arms deals play in the development of China's military is undeniable. The Chinese Navy depends directly on European technology. From 2010 to 2012, EU weapon firms received licenses to export equipment worth EUR 3 billion (=US$4.1 bn), according to annual EU trade reports. For year 2012, a ripe 80% of Chinese arms deals were approved by France, the supposed US ally, with delivery to China of weapons worth EUR 104 million. Emil Kirchner is EU policy expert at Britain's University of Essex. He said, "Already, cynics claim that if the People's Liberation [Chinese] Army went to war tomorrow, it would employ an arsenal filled with equipment from Germany, France, and Britain." The three nations account for 18% of Chinese military imports. The PLA arsenal runs deep, funded by trade surpluses earned from the West. The deaf dumb and blind in the war materiel observation deck appear to be the Americans and NATO lapdogs. Embargo, what embargo? The Chinese defense ministry downplays the European dependence as exaggerated. See the Russia Today article (CLICK HERE). The irony is inescapable and pathetic. The US/NATO might soon face Russia & China in battle, where the Asians use European weapons.

◄$$$ THE PENTAGON SAYS IT CANNOT REPLACE IMPORTED RUSSIAN ROCKET ENGINES... IN A STRANGE TWIST, UNITED LAUNCH ALLIANCE IS AT RISK, AFTER A COURT APPEAL BY ELON MUSK (OWNER OF SPACE-X)... THE BILLIONAIRE HAS BEEN WITHOUT SUCCESS TRYING TO BREAK INTO THE MILITARY SPACE CONTRACT SYSTEM CLUB, FIGHTING AGAINST THE INHERENT MONOPOLY AND HIGH COST. $$$

The Pentagon cannot find a replacement for the rocket engines it frequently purchases from Russia. Such comment should elicit big questions. Until a court appeal, it was business as usual, working around the sanctions. Reminds the Jackass of ongoing Exxon energy deals which also continue on track in the face of sanctions. The import of the engines has been banned via a court order lobbied by SpaceX, arguing in favor of enforced sanctions. The USMilitary sprawling complex might soon find it difficult to continue launching its military satellites. The longstanding supply connection between Russian and US defense companies has been halted, under review. To say the US is at war would be a mild contradiction. Langley is at war, not the USMilitary. Watch the split grow between the two major military entities, the overt USGovt defense network versus the hidden CIA illicit criminal organization. The former is funded by the USGovt and taxpayers. The latter is funded by narcotics in a massive global vertically integrated business conglomerate, where some costs are covered by the dopey dullard dimwits in WashingtonDC who choose not to tell the difference between cocaine and talcum powder.

After an order by US Defense Secretary Chuck Hagel, the review of USAir Force dependence on the Russian-made RD-180 engines has not yielded any solutions. They are used in American Atlas V rockets. Complexities have arisen quickly. In focus suddenly is the United Launch Alliance, a partnership of Lockheed Martin and Boeing. The ULA has been purchasing RD-180 rocket engines from joint Russian-American enterprise RD-Amross LLC since 1997. The engines in question have been produced at a plant of NPO Energomash near Moscow. Over 40 such rocket engines were delivered between 1997 and 2007 alone. The US has used RD-180 engines to power its Atlas III and Atlas V rockets, which mostly deliver commercial or military communications satellites into space, as well as reconnaissance and navigation satellites.

The private SpaceX firm, run by US billionaire Elon Musk, is fighting both the Pentagon and Russia on the quietly developing US space market. Options are presented, but without immediate output. The replacement plan outlined by the Air Force for Hagel have included building RD-180s on United States soil under an existing license from the Russian maker, or using different Delta-class rockets. One must wonder if Russian sanctions include licenses granted to US firms by Russian firms. Lunacy is the watch word. Time is the drawback, like in setting up production for certain alternatives. The US competitors so far have met with success in banning the Russian engine import. They want the business, in a bizarre twist of irony and contradiction.

The SpaceX corporation won a court order on April 20th which temporarily blocked the Air Force from buying the Russian rocket engines on the grounds of a potential violation of US-imposed sanctions. It is an obvious violation. SpaceX argued that by purchasing the engines, the Air Force is funneling money to Russia's military industrial complex, with whom war is waged. Musk argued other angles. Under SpaceX, he has been attempting to break into the military launch market, in particular to end the Boeing Lockheed Martin monopoly on launching military satellites from the US pads. The club is big and well protected, operating usually without open bids. Be certain that Musk would offer probably 30% lower cost. Also, the higher cost no-bid setup is usually protected by on national security grounds, which usually means deep typical cost overrides, covered fraud, and massive Congressional kickbacks.

Here is another twist. The court decision did not cover existing contracts or their payments. No indication has come that Russia could stop the production of engines already agreed upon under the latest contract, nor did the US freeze their delivery. The further deliveries could come under question at least temporarily, since the United Launch Alliance has already stockpiled a two-year supply of the engines. See the Russia Today article (CLICK HERE). The Fascist Business Model is a bitch, since it develops weapons supply ties to all the players, friend and foe.

Other broadbased risks exist, like if the multitude of different importers cut the USMilitary off, reducing their military machine. Recall a shortage in 2007 over Israeli bullet supply. Recall the 2011 threats to Russian supply of rare earth metals used in missiles. Lest one forget, the world depends on Russian platinum for 44% of global supply. It is getting stranger by the day. The risk grows for when the USGovt mutant monkeys sanction 80% of the world. Those they sanction will define the core of the Eurasian Trade Zone. Keep in mind that the Langley Mercenary Force used in Ukraine spreading mayhem, chaos, and terror alongside the NATO mercenaries are funded by Soros. They are at stern odds with the Pentagon and regular issue warmongering brass. The traditional USMilitary must contend with a new spearhead para-military force funded by Langley narcotics, with team member in Soros strorm troopers.