Editor Note: No apologies will be made for a rather rich group of Eastern sources of news information. The West with Reuters, Bloomberg, and several British outlets have become an embarrassment in objective journalism. Zero Hedge remains an outstanding voice in the wilderness, without many peers. A recent story presented on BBC online was removed in England, which showed evidence of the Ukraine Air Force attacking the Malaysian airliner. People living in the West do not have to succumb to a steady stream of pathetic propaganda that insults the intellect. Distorted news has become the norm inside the United States. Like with debt rating agencies, the information flows more from the East. The Jackass takes solid sources from wherever they arrive, and that means less from US, UK, and European sources which follow the American music with a Goebbels goose step. The game has changed in a significant way, as the United States descends into disorder, chaos, calumny. The betrayals, deceptions, plots, genocide, violence, and complexity are staggering.
QUOTES ON MONEY
"When war is declared, truth is the first casualty." ~ Arthur Ponsonby (1928)
"This little thing called the internet makes it much harder to govern." ~ John Kerry (unaccomplished US Senator and failed Secretary of State)
"A war appears extremely likely at this point, possibly with millions of casualties. The United States will be wiped out in the very end, along with its criminal cast of warring leaders. Germany will (together with France) tilt East very soon. So after all, the German-French friendship might in the end produce something constructive. The French industry, and now their very important and powerful agro sector, are being crushed by the Russian counter sanctions. Deutsche Bank is near collapse. Fitschen, the co-CEO has just been served papers by the state attorney office for having lied in a mega court case that DBank recently lost. The new array of alternative non-USD channels and windows is being developed. It will come by default during crisis, seeking those alternatives as solutions, as barter will play a key role. The solution will arrive with lightning speed, so quickly (like removal of a bandage) that many people will not see it coming." ~ The Voice
"I have made a consistent message for four years running. The USDollar will rise and rise and then rise some more, before it suddenly dies. It will kill the other currencies, since those others will not be able to print money during the final turmoil in order to survive. The unfolding of currency events will be paradoxical, since all major parties will comprehend that the USD has turned toxic and must be jettisoned from global trade and banking. But it cannot be removed without a devastating sequence of events, whose climax is the multi-$trillion derivative cave-in." ~ Jackass
"The United States has no national coordinated policy, and really never has since World War II. The main centers of coordination have been seen in banking and the military, both well hidden. There is only syndicate exploitation of resources from the government helm, and micro management of business sector toward short-term corporate goals. The end result is a totally lost course to pursue our national interests, which has produced a perfect environment for systemic failure and national ruin from raiding the treasury and gutting the core industry, while abusing both enemies and allies on the foreign fronts of banking and military theater. The death of America is as much a crime scene as a field of negligence." ~ Jackass
"QE forces capital destruction, as you have said. USD avoidance forces derivative events, as we are seeing. Economic decay forces bank failures, which have renewed. Time is not on the side of the bankers, which has made them panic. Events are moving fast in acceleration. War to defend the USDollar has prompted much more reaction to avoid the USD in trade, and thus banking. Curiously, many Western firms including Exxon and Boeing have ignored the US Government sanctions against Russia. The US leadership is losing whatever integrity it has left quickly, and recently its last shred of credibility. The implosion is in progress right here right now." ~ Anonymous European source
## INTRO MONETARY FRAGMENTS
◄$$$ MICHAEL BELKIN DESCRIBED A STOCKHOLM SYNDROME AT WORK IN US-BASED FINANCIAL MARKETS... FUND MANAGERS HAVE ALLIED THEIR FAULTY THINKING WITH THE MONETARY POLICY MAKERS, A PERVERSE DEPENDENCE HAVING DEVELOPED... JUNK BONDS ARE A DRY HOLE. $$$
Hedge Fund Consultant Michael Belkin made some intriguing observations, then he highlighted a niche market in deep trouble. He believes hedge fund and large investors display the Stockholm syndrome. The psychological term applies to captives who develop a shared affinity with their captors and sympathy for their rationale. The investment houses are forced to identify with their captors like Yellen, Draghi, and the Wall Street bankers who set policy and spew phony money in extraordinary high volumes. Opposing them leads to losses and being run over in short trades. They have grown dependent upon the USFed and their massive spigot. Furthermore, junk bonds are in big trouble. They have come unglued, lacking liquidity. The banks no longer have the ability to bid for junk bonds. In 2008, the banks had $240 to $250 billion in trading capital for junk bonds. The current trading capital is under $50 billion of trading capital. They cannot make markets. Meanwhile the supply of junk bonds has doubled. Great strains will lead to damaging events, during a time when bond monetization has created torrents of phony money. None reach junk bond ponds. See the King World article (CLICK HERE).
◄$$$ THE CURRENT ONGOING MONETARY POLICY RESULTS IN SYSTEM-WIDE CAPITAL DESTRUCTION AND HIGHER COST STRUCTURE... IT IS NOT STIMULUS... IT CAUSES ECONOMIC ROT AT THE STRUCTURAL LEVEL... MONETARY POLICY IS STUCK, WITH THE CHOICE TO KILL THE ECONOMY SLOWLY WHILE CLINGING TO FALSE HOPE THAT MONETARY POLICY WILL WORK, OR TO KILL THE FINANCIAL STRUCTURE QUICKLY WITH WITHDRAWN MONEY FLOW. $$$
The higher cost structure is an unintended consequence of QE, the ongoing endless bond monetization done in unsterilized manner. That means no funds are withdrawn when the $40bn to $80bn in bond funding enters each month. The primary motive and intended benefit is to bail out Wall Street banks for their USTreasury holdings, and to run effective smokescreen cover on their mortgage bonds also in need of purchase. Both are done by the USFed. Not only can one insinuate or imply that Fed QE action leads to corporate profit squeeze, it can be proved easily. In no way does the Jackass imply that the motive is for the USFed or Wall Street banks to mop up struggling companies. The companies are withering and dying from structural rot, linked to lost profitability.
Witness the wrecking ball of inflation directed against capital structures. The companies cannot pass on higher costs, since many are the businesses in liquidation from nearby competition. Also, Chinese imports add to fierce competition. In past cycles, the intense Asian competitions was not there, especially from China. In past cycles, the near 0% stimulus caused capital business investment in the USEconomy on a pervasive basis that is not present now. Such traction is totally absent in the current cycle (dead end alley). No pent-up demand has been developed, but rather drainage of demand from the future. See the huge inventory of unsold homes on bank portfolios, or the fields of unsold vehicles from carmakers. Subprime lending has become the new rule, a deadly signal, as applied to homes, cars, students.
The ZIRP does not work this time due to Chinese industrial presence and US liquidations. In the past, life support was the device from home equity extractions, a unique burning of capital. This is not very complicated, entire chapters ignored by the central bankers in service to the big banks. Those analysts and observers who use the past in their current analysis must factor in the Chinese presence (emerging markets generally), the US housing bust (with no recovery in sight), and the vast liquidations (ongoing endlessly). Furthermore, ObamaCare also aggravated the small business situation with an added $2500 per person tax. As footnote, the jobless rate for college graduates is 80% at least. The official QE is killing the body economic of the United States slowly by taking capital out of usage. Removing QE would kill the entire body financial of the United States quickly. The delirious tremens seen by means of credit removal from low quality underwriting and turning off the phony money spigot would wreck the financial markets in two to three months.
◄$$$ A BREAKUP OF THE EUROPEAN UNION IS IN PROGRESS... THE DOWNED MALAYSIAN AIRLINER OVER UKRAINE MIGHT HAVE BEEN A TURNING POINT IN DISGUST... SEVERAL EUROPEAN LEADERS HAVE MOVED TOWARD FULLER SANCTIONS, BUT THEY ARE SLOWLY GOING TO TURN FROM SUPPORT DUE TO DOMESTIC BACKLASH. $$$
The grieving Dutch Foreign Minister Frans Timmermans called it a turning point in Europe's approach to Russian sanctions. Among the 298 passengers, 194 were Dutch on the Malaysian airliner destroyed over Ukraine. The European leaders have been weighing support over continued sanctions. Many governments were reluctant to antagonize Russia, a major energy supplier. Concern over the cost to the expansive EuroZone Economy of fraying the vast network of industrial and business links with Russia are being re-evaluated. The Russian detribalization of Ukraine has growing opposition. The march in obedient step to USGovt direction, toward Russian sanctions continue out of duty, but with hesitation and absent conviction. Almost no serious examination of evidence has taken place, only blind lockstep obedience to the war drums. Logic, reason, and truth are pushed to the wayside.
It is utterly amazing that sanctions were ordered, even though most evidence points to the Ukraine Air Force as shooting down the Malaysian airliner, first with a rocket, then with machine gun fire. The blame game has a basic whiff of propaganda. The evidence will be presented, all in time. Even the USGovt has backed off its initial claims and accusations, a rush to judgment made before any evidence was available. The Jackass foresees support for the Russian sanctions as eventually crippling both the European Union and the NATO Alliance, in a series of backlashes. See the Reuters article (CLICK HERE). The Hat Trick Letter is neither a war nor political newsletter. The Jackass puts the likelihood at over 90% that the Ukraine Military was responsible for destroying the airliner. The passenger list tells yet another story, but not here, related to motivated virus propagation. Let it be known that the German press has shown sharp ridicule for stories emanating from the United States propaganda mills about Russian involvement in the Malaysian flight attack. The Germans comprehend the Kiev responsibility. See the Russia Today news (CLICK HERE). The Dutch officials will retract soon, having made themselves look absurd in swallowing the US lies. Rush to war, like rush to sanctions, is usually based in deep deadly error.
◄$$$ ECONOMIC LAWS ARE NOT OPTIONAL, BUT RATHER PART OF MOTHER NATURE, AS IN CYCLES AND CORRECTIONS FOR EXCESS... A HORRIBLE OUTCOME AWAITS THE NATION FROM FOLLOWING HERETICAL POLICY... SYSTEMIC FAILURE AND ECONOMIC RUIN AWAIT, AS A RESULT OF FULLY EMBRACED HYPER MONETARY INFLATION. $$$
No recovery is possible, given the current economic policies in place. Initially, it was argued by some that government intervention was necessary and would effect an economic recovery. The Zero Percent Interest Policy did not work. It was followed by the Quantitative Easing devices, which also are not working. Even the dullest of Keynesians know their policies failed, yet they continue out of desperation. The ZIRP Forever and QE to Infinity are stuck in place, since their removal would cause nearly instant systemic failure. The policies continue because the political class argues for their continuance. They benefit from backdoor bailouts on a regular stream. Sound economics is gone out the window, leaving only political interests. The QE is the grandest backdoor bailout of Wall Street in history, falsely represented as stimulus. Recall the USGovt claimed the economic recession had ended in June of 2009. It never ended, but rather intensified to become a chronic powerful recession. In the last year, it has become a veritable depression, the evidence overwhelming. For decades, the proper lesson taught was that unbridled monetary inflation causes capital destruction and economic ruin. The same laws apply, the United States no exception. Grand irreversible damage is being done, with celebration in arrogance. Global USDollar rejection is the consequence, and death of the Petro-Dollar. Given the destructive policy firmly in place, the rest of the world will work avidly to avoid the USDollar, which will die from neglect and its own inflationary devices.
The Jackass proclaimed in 2009, in 2010, and in 2011 that the monetary policy would be stuck in place forever, until the USGovt debt default or the national systemic failure. Both are in progress, with sclerotic banks and derivative dependence the feature of the day. Moral hazard is engrained entrenched policy. The distortions, imbalances, and dependence upon the state are all growing by the month. Monte Pelerin concluded, "The inevitability of what is coming is what is important. The timing remains uncertain. It need not occur in the next week or month. Timing may still be measured in years, but the outcome is more certain today than it was five years ago. The laws of economics make it so. Any geopolitical or economic misstep could trigger the event. Without such a misstep, the charade could continue for a while. A collapse is coming. It is unavoidable and will be worse than it should have been as a result of political duplicity." See the Zero Hedge article (CLICK HERE). The damage will be worse with each passing year locked into ZIRP & QE as policy. Mother Nature has an economic card to play, and followers of heresy will uniformly be losers. The result will feature supply shortages, fast rising prices, and social disorder, maybe even water scarcity. Most experts ignore the rapid money supply growth, contrasted by declining money velocity, evidence of systemic failure. It is politically incorrect to point out such contrast in failure.
◄$$$ PORTRAIT OF VLADIMIR PUTIN, BY MIKHAIL KHAZIN... MOTIVE TO CONFRONT (IF NOT OUST) PUTIN COMES FROM THE REFUSAL BY THE RUSSIAN PRESIDENT TO BE INCLUDED IN THE WESTERN ELITE ORDER... PUTIN CHOOSES EURASIAN UNION OVER ATLANTIC INTEGRATION. $$$
The Vineyard of the Saker shared a translated video by his Russian Team, in which the renowned Russian economist Mikhail Khazin presented his view of Putin as it applies to the hostile and misdirected West. The Saker believes that Khazin is fundamentally correct, especially about the West's refusal to accept Putin as anything but a very junior partner. Therefore Putin flexed muscles and has exerted the Russian machine. The Saker disagrees with Khazin in the implication that Putin wanted or even believed that such an honest partnership was possible. By training and by trade he knew very well the West, especially its ruling elites. The Saker believes Putin pretended to play the partnership game for as long as possible, in order to buy sufficient time for his clan, such as the Eurasian sovereignists like Shoigu or Rogozin. Contrast their position to the Atlantic Integrationists like Medvedev or Kudrin. It is suggested to listen to Khazin, superbly informed. Obtain a rare insider view of what is really happening behind the Kremlin walls.
According to the anti-Kremlin polling organization Levada-Center, Putin's popularity is now at its historical highest level of 87%. The expectation of unseating confidence in Putin's leadership within Russia is ill-founded and errant. A very large consensus in Russia supports the stern manner in which Putin has been handling the Ukrainian crisis. Furthermore, most Russian people, even former critics, see through the real motives of the anti-Putin campaign financed by current oligarchs running amok. The main risk is for the Nazis in Ukraine to overrun Novorussia, a very unlikely event. Notice the Obama public support is the antithesis, running around 13%. Their total is near 100%, which screams a loud message not heard by the sheeple residing in the United States who are subjected to the din from the controlled press networks. Obama cares more about his gay rights than economic development. He has followed a fascist playbook from his masters with complete obedience. His legacy of ObamaCare is a travesty and failure, steeped in cronyism and amateur fraud. See the Vineyard of the Saker article (CLICK HERE). The US Presidency has become a total joke!
◄$$$ LAW ENFORCEMENT HAS BECOME ALTERED AND TWISTED INTO AN INCOME GENERATION TASK AND CHALLENGE... ATTACK ON WEALTH IS COMING FOR THE NATION TO A NEIGHBORHOOD NEAR YOU... THE WAR ON TERRORISM WILL BE FOLLOWED BY ISOLATION OF ASSETS... THE MOVEMENT WILL GRADUALLY BECOME A CRIMINALIZATION OF WEALTH, WITH BROAD ACCUSATION OF SOURCE. $$$
Retired Los Angeles Dept Deputy Chief of Police Stephen Downing told FoxNews Latino, "The federal government has turned policing into policing for profit." Witness the police state gone out of control. Citizens who exercise their rights are being criminalized. Soon wealth will be isolated and attacked. All people are potential bad guys in the eyes of the law that looks to jail us, fine us, and seize our property for profit. The Jackass goes farther to claim that if FEMA Camps are filled, the human organ black market business will ramp into overdrive. The trends are dangerous. The Police are tracking down cash, rather than crime. Downing told Fox that departments direct police organizations to generate cash, instead of investigating violent crime and other crimes. The body of criminal laws makes it dangerous to simply live, breathe, and work without tripping a criminal wire with consequence. Columbia law professor John Coffee estimates the federal government has the criminal process at its disposal to enforce as many as 300,000 federal regulations. In his introduction to One Nation Under Arrest, Edwin Meese III wrote, "It is only a slight exaggeration to say that potentially everything you do each day is subject to criminal law: driving, shopping, gardening, and even, yes, eating." Add to that anything that involves money. See the Casey Research article (CLICK HERE).
The Jackass adds a harrowing comment from a political expert and friend, a true student of fascism. "An attack on wealth is in progress, as well as nationalization of poverty. The policies will intensify. It will soon be illegal to be wealthy, as all wealth will be challenged, held outside the syndicate walls. Owners of wealth will soon be forced to prove it is not from tax evasion, not from narco sources, and not from illegal activity. All burden of proof will be on the owner on assets. Government will reserve the right to reject any and all evidence without due process or cause, and then proceed to seize wealth on a broad scale."
◄$$$ GARDENER CLEAN-UP PROJECTS ARE URGENTLY NEEDED. $$$
Vast clean-up crew projects are needed. Gardeners must assist on conversion of USTBonds to Gold. They must gradually liquidate the big Western banks. They must move to consolidate the banking derivatives into some Global Bad Bank location (cesspool). They must isolate nasty bankers, blackmail them, remove them from office, exile them, eliminate them, force them into retirement, push them to Paraguay. Gardeners must corral defense contractors (aka weapons producers) and restrain them. They must expose the US manchurian candidate and other tools operating within the higher offices. They must expose the fascist elements among key ally nations, especially in the little nation on southeast corner of Mediterranean Sea. They must hunt down Langley mercenaries and remove them out like so many insects on the summer porch table. Gardeners must cut off arms flows to Langley terrorist groups, that the protected USGovt agency has sponsored since before they created Al-Qaeda. They must disable the destructive chambers that develop lethal viruses and HAARP weapons. They must save the planet which is being contaminated in one region after another. Bring on the Gardeners, as the hour is late.
## UGLY SECRETS EXPOSURE
◄$$$ UGLY SECRETS ARE MANY IN THE ELITE CHAMBERS, OFTEN LACED WITH TREASON, FRAUD, INVASIONS, MOTIVE FOR WAR, EVEN GENOCIDE... THE BIGGEST SECRET IS THAT NARCOTICS ARE BEING USED TO USHER IN A GLOBAL FASCIST STATE, BUYING OFF GOVERNMENTS... THE NATION AND ITS PEOPLE ARE THE OBJECT OF COUNTLESS BETRAYALS. $$$
Permit the Jackass to rattle off numerous ugly secrets. The original Obama mission upon being selected for the Presidency was to kill the USDollar, to wreck the USEconomy, and to pave the way for a global fascist state. He is neither US born nor a graduate of law school. His entire persona is fiction. The Wall Street executives have giant gold assets, held in Carlyle Group accounts. Most of their gold was gathered as stolen Fort Knox bullion from the 0% Gold lease created by Robert Rubin. The profits from matched long USTreasury Bonds enabled enormous profits probably totaling over $2 trillion. Futures contract leverage was routinely used on gold and bond contracts, to amplify profits. The gold holdings by the bankers is as counter-party to massive bank short futures contracts, whereby they gut the publicly owned banks. The Cyprus bail-in story was a hoax, used as cover to block the Russian banks from using Cyprus as a site to convert USTreasury Bonds into Gold bullion.
The Ukraine War is designed to bring down the EU economy, creating a scorched earth destroyed province in the east of the nation, while laying blame on Russia. In fact, Langley, Soros, and Mossad are responsible. The USDollar has been peeking into the morgue for months, and culpability for its final death must be created, not assessed. John Snow as Treasury Secretary for Bush II Admin was without doubt the weirdest promotion in US finance history. He came as CEO of CSX Corp, with no finance experience. His tenure was marred by the Dubai Port World controvery. The Jackass believes he was selected to enable the shipping routes and port destinations for USGovt agency narcotics, from Afghan sources through Turkey and NATO bases.
The many viruses are developed at Fort Dietrich USArmy Bioweapons Lab, which works closely in virus development (not vaccines) with the Atlanta Center for Disease Control. Certain large pharma firms like Novartis have a close alignment with the CDC. Virus delivery is through vaccinations, whether forced or suggested. Former President Jimmy Carter was the bastard son of Joseph Kennedy Sr, thus half brother to the three Kennedys in politics. Mother Miss Lillian never spoke of a father to Jimmy, but Lillian did work as personal secretary for Joe Senior. She left the job suddenly, only to appear two years later with a bouncing baby boy who later would develop a huge full set of teeth. Resemblance to Robert Kennedy is stark. The Gates Foundation and African virus have a direct relationship. To earn his cabal bones, Bill Gates developed a successful virus for usage in Africa that enters the sweat glands in unique fashion. The Gates and Soros laboratories in Sierra Leone are implicated in the recent Ebola outbreak. A witness was set to testify against Gates and Soros, except he was on the Malaysian flight that went down over Ukraine. The Intel Pentium chips include a secret back door for the CIA to monitor all online commerce and transactions. The Motorola chip, famous in the 1980 decade, has been almost completely phased out. The Motorola chip had no backdoor features, but remains in current usage in scattered multi-processing applications still.
A survey done by the US military stated that over 71% of the US-based youth are unqualified to join military service for a number of reasons, including educational, behavioral, obesity, and health conditions. The USMilitary is therefore redirecting its emphasis into the mercenary businesses like Blackwater. They resort to private contracting companies that create more problems than solutions. The leading causes of soldier suicides are surely post traumatic stress disorder, but another leading cause is rape, both of women by men and homosexual rape of men by men. Three separate USMilitary sources confirm the widespread rape practices. No prosecution of homosexual rape is done, no ask no tell. The stress related suicides are often linked to repeated return tours, ordered by force, against the will of fatigued battle weary soldiers. Few soldiers read the fine print, which stipulates permanent service, as in human logs and cannon fodder. The Veterans Admin controversy and flap confirms the disregard for soldiers, mere meat. Prosthetics are commonly dispensed, sort of a public relations gesture, to prevent ill will and harmful publicity.
◄$$$ SOME BACKGROUND ON UKRAINE, SYRIA, QATAR RELATED DIRECTLY TO ENERGY DEVELOPMENT AND PROSPECTIVE INCOME... THE ENERGY CONTRACTS ON MAJOR PROJECTS IS MOTIVE FOR WAR. $$$
Oil & gas are at the center for big battles of wealth and huge income streams. The cause of wars started by the United States in Ukraine and Syria can be identified as to secure energy wealth. The cause for war in the Gaza could also be lust for the energy wealth, not to be shared. Nothing further will be mentioned here, as removal of a nation seems part of a business decision. The Burning Point discussed these topics with Konstantin Kholodilin, based at the German Institute for Economic Research, and Alastair Crooke, the founder and director of the Conflicts Forum.
A long-term 50-year contract was signed by Ukraine President Yanukovich, one month before he was driven out of office. This contract was with companies Shell and Chevron on production of the shale gas in the SouthEast part of Ukraine. The assertion is easily made, that a primary causes of the coup d'etat was over energy wealth. The so-called anti-terrorist operation in that part of the country was the propaganda smokescreen. Some doubt exists over the contract duration, but certainly a contract was signed for the exploration of shale oil & gas reserves in Ukraine. Such high volume reserves are very speculative. They were due for more testing to verify, additional well drilling toward exploration under a murky contract, one not publicized. Fracking has its own risks, due to rapid depletion and heavy cost of replacement wells. Ukraine might not be in an easy position to exploit its energy fields via fracking. It requires drilling rigs, the pipe structure, and engineer staff to make it an economic prospect. For most of the world, fracking has not proved to be viable, just a short-term flash in the pan, with huge costs. The extended economic zones of Ukraine offer potential in the Black Sea, with exploitation of seabed reserves, not so much the shale gas exploration. There was a real sense of energy prospect in Ukraine, but the heavy interest for foreign investors is in the seabeds. Refer to the Burisma Holdings company where Joe Biden placed his son on the board of directors.
Further discussion centers upon Chevron. The US-based energy giant recently sold its shale projects in the United States. They might be interested in the entire new scope of the off-shore oil discovery from Israel that spans from Syria to the Gaza strip. Qatar is also directly involved, or implicated, depending on the perspective toward instigated war. Qatar has given support to the militant resistance. The evidence lies in the contract the emirate nation drew up with the opposition Syrian group. It clearly specified the rights for Qatar to build an oil & gas pipeline through Syria, for the passage on energy transit routes across Syria. In time, it is likely that Turkey will be drawn into the battle for the oil & gas wealth. War is over energy wealth, not at all in the news. See the RIA Novosti article (CLICK HERE).
◄$$$ THE REAL REASON THE UNITED STATES IS BOMBING IRAQ IS TO PROTECT THE KURDISH OIL FIELDS WHERE THE WESTERN OIL COMPANIES OPERATE... THE PENTAGON REGULARS HAVE MET THE LANGLEY MERCENARIES... OBAMA HAS CROSSED THE RUBICON... MAYHEM AND FURIES COMETH, BOTH OVERSEAS AND AT HOME. $$$
The Obama Admin has re-entered the Iraq War Zone, potentially a significant strategic error. The authorized targeted air strikes inside Iraq are intended to combat the Islamic State (ISIS) advance. However, ISIS originated as a Langley asset. The target zone initially has been Erbil in the NorthEast provinces known as Kurkistan. It is the capital of the entire Kurdish region. The USGovt line is that air strikes were to prevent genocide, to protect Christians and other religious minorities, and to halt the ISIS advance. The airstrikes are the first that have been authorized in Iraq by the United States since 2011. Recall that the United States conducted significant nation building since 2003, or annexation, or exploitation, or something related to military service contract fraud, leaving alone the topic of civilian target practice with wagers by Blackwater personnel. The Iraq experience has been a colossal failure and boondoggle.
Some important circumstances can be identified. To be sure, ISIS is entirely funded, directed, created, and armed by the West, notably the USGovt security agencies centered in Langley. The ISIS mission was to seize territory across Iraq. In doing so, they developed some independent funding with bank raids. The motive for the bombing missions might be better explained in terms of protecting the area surrounding Erbil, the Kurdish region of Iraq, since it is a hub for major US oil companies. The city of Erbil has 1.5 million inhabitants, regarded as the administrative center for the Kurdish regional oil industry. The region produces one quarter of Iraq's oil output nationally. The oil reserves are so large in the Kurdish region that its leaders often claim that, if they were to break off from Iraq and establish their own country, the new Kurdistan nation would stand as the ninth largest oil producer in the world. Before the air strikes, Chevron and Exxon Mobil had been actively evacuating their staff from region. Not only American companies were worried about their ability to continue production. British oil companies were beginning to evacuate personnel as well. Genel Energy was withdrawing staff from fields that had not started production, the fields located in Taq Taq and Tawke. The air strikes have drawn a line for ISIS not to cross, which are intended to reinforce the stability in South Iraq and in Kurdistan. See the UK Reuters article (CLICK HERE) and ther Intl Business Times article (CLICK HERE).
The information is worth further digestion. The United States has avidly funded ISIS guerrillas in clandestine manner, bringing them into power. Then the same USMilitary initiated a bombing campaign against them shortly thereafter. The fact is that al-Qaeda, ISIS, and the other related organizations function as the Langley Arab legion. They no longer are secretive Langley assets, guerrilla terrorist groups on their payroll. Al-Qaeda is in the open, a well funded and well supplied stategic group operated by Langley offices. They are used to destabilize and to overthrow monarchies in the name of spreading democracy, often with the conceived perception of security tossed in. When these proxy armies begin to endanger oil production or any other project of the world oligarchy, however, they must be eliminated and the threat that they pose neutralized. As stated to the Jackass by Cato (USGovt and USMilitary source), when the Pentagon Regulars are in a hot war with Langley mercenaries, then two US-based armed forces are war with each other. At that time, the heightened risk of impeachment is brought forward within the USCongress or other chambers where real power lies. The US has passed such a point with the air strikes to protect oil industry assets. See the Activist Post article (CLICK HERE).
In a phrase, Washington opened the gates of hell in Iraq. Next come the furies, according to David Stockman. Blowback can be a bitch, as described by the late great critic of the American Empire, Chalmers Johnson. Even the acclaimed historical author could not have imagined the depth and degree of blowback coming ferociously toward the USGovt control rooms. The dubious war on terrorism has come to Langley's front door. Perversely, the Pentagon Regulars supplied the Iraqi Army with the latest in deadly weapons. The US annexation of Iraq was more an occupation and horrendous example of failed nation building. The result is the Langley mercenaries (not all Arabs) have engaged the same parties supplied and trained by the Pentagon. The air strikes are again executed by the Pentagon. We finally have the Pentagon fighting the Langley crowd. To say the United States is a house divided is a ridiculous under-statement. Its military is of two types, one funded by the USGovt budget, the other funded by profound illicit narcotics. Watch for the infamous Green Zone of Baghdad to come under ISIS attack. See the Stockman Contra Corner article (CLICK HERE). The real motive was and always was to wreck Iraq, to prevent its internal development, all the while ravaging its resources for Western exploit. The Langley objectives are well known and well studied, to destabilize and to control. The former is a success, the latter not at all. They have produced mayhem in blowback. Expect Russia & China to clean up the mess and to win the spoils in Iraq, where the USGovt has spent over $3 trillion in so-called nation building (barf).
◄$$$ PUTIN HAS THREATENED TO BUST THE USGOVT 911 INSIDE JOB CONSPIRACY WITH FACTS, FIGURES, AND EXTENSIVE ACCOUNTS... THE INFORMATION HAS BEEN DECIDED TO BE RELEASED AFTER THE FALSE FLAG COUP D'ETAT IN UKRAINE... THE SNOWDEN SOURCE IS NOT THE ONLY SOURCE... ON THE UNITED STATES FRONT, THE ARCHITECTS & ENGINEERS GROUP IS TOTALLY DISMANTLING THE ABSURD FLIMSY OFFICIAL USGOVT STORY. $$$
The Official 911 Story is for the braindead, the morons, the fools in the crowd. The lid is about to come off, just a matter of time with decisions to make. The big question is whether Americans can perceive the message, an issue of being deaf dumb blind. Review the analysis toward the official 911 conspiracy theory by one of the great freedom minded investigative journalists on the planet, James Corbett. Begin with then Defense Secretary Rumsfeld bringing attention to the missing $2.2 trillion in defense appropriations over a 20-year period, announced the day before 911. The information is overwhelming on the fraud story centered at the USArmy Accounting office, the explosives story with various types used, and the heist story for gold, bearer bonds, and diamonds. The Jackass finds it fascinating that the majority of Americans still remain ignorant of a basic fact, that the World Trade Center housed the largest private bank in the world. The event was a staged bank heist, the biggest in mankind's world history.
A breakthrough event might finally be near, with the upcoming declassification of 28 pages of the report entitled "Joint Inquiry into Intelligence Community Activities Before and After the Terrorist Attacks of September 11, 2001." Furthermore, other salvos of information are soon to come from behind the Russian fence. Vladimir Putin threatened in May of this year that he had evidence that 911 was an inside job and was going to release it after NATO and the USGovt staged a coup d'etat and false flag attack in the Ukraine. Something big is about to break, probably in months, not weeks. Putin will use the 911 evidence to break the US-EU alliance. See the DollarVigilante article (CLICK HERE).
After 911 hit the scene, the event enabled the Fascist Dictatorship to take hold of the USGovt offices. In the following months, a group of Engineers made an impression on dispelling the official story. They did a creditable job, their head however was removed from Brigham Young Univ engineering faculty, to the shame of the institution. In its place has come a truly massive far more impressive group called Architects & Engineers for 911 Truth, or AE1000. They deal in scientific data, not BS klaptrapp nonsense. They might be distinct groups, not totally sure. The message by Richard Gage, its founder, is of a major gold heist at the World Trade Center on 911. Gage was interviewed on C-Span. He did a great job of dismantling the official story and answering the critics. The walls are crumbling down finally around the nonsensical illogical absurd official story put forth by the criminal accomplices in the USGovt. C-Span posted the interview on August 2nd, amidst some hubbub. See the C-Span interview (CLICK HERE) and the YouTube video (CLICK HERE). See also the Word Press article (CLICK HERE).
As evidence with publicity is generated on some verifiable proof of complicity by the USGovt security agencies, the Wall Street banks, and a key MidEast ally (not the Saudis), one is left to wonder which news networks and which newspapers will cover the story. For the longest time expect none to cover it. The public demonstrations with placards might come much later, along with demands for treason trials. Later still will come civil lawsuits for restitution of victims, then Congressional investigations and even independent public investigations using Freedom of Information Act and the mountain of accumulated information which has been suppressed. The Jackass favorite is the AE1000 group, which has gathered scientific evidence. Other groups have gathered weapons evidence that implicated Papa Bush and his arms merchant buddies in Tel Aviv. The full truth might not come out until after the USGovt debt default, as part of the laundry cleaning process.
◄$$$ THE MONSANTO DEATH WEB HAS BEEN EXTENDED... THE TRAIL BECOMES MORE CLEAR WITH A GENE THERAPY FIRM IN BRITISH COLOMBIA BROUGHT INTO THE FOLD... FOREIGN USGOVT AID IS LINKED WITH MONSANTO SEEDS. $$$
Tekmira Pharmaceuticals has received $1.5 million in a milestone payment from Monsanto. Tekmira is a leading developer of RNA interference (RNAi) therapeutics. They recently completed a specified program for undisclosed developments. The milestone is part of the research program under the Option Agreement Tekmira signed with the agriculture company, announced on January 13th of 2014. The Option Agreement relates to Tekmira's proprietary delivery technology and intellectual property for use in agricultural applications. The potential value of the transaction could reach up to $86.2 million, following the successful completion of all program milestones. Some details. Tekmira Pharmaceuticals Corp is a bio-pharmaceutical company focused on advancing novel RNAi therapeutics, which involves its leading lipid nanoparticle (LNP) delivery technology to pharmaceutical partners. Tekmira has done work in nucleic acid delivery for over a decade, with broad intellectual property covering its delivery technology. Tekmira is based in Vancouver, British Columbia in Canada. See the Yahoo Finance article (CLICK HERE).
While Monsanto boasts of developing genetically engineered food seeds that grow faster and stronger with more resistance to bacteria and other parasites, the agri firm is under siege. Monsanto is accused of research to further the virus delivery mechanisms from food products. People would be made more receptive to viruses after consuming Monsanto food products. Their partnership with nefarious groups is well known, part of the global genocide program known as Agenda 21. The USGovt has linked aid to Ecuador with acceptance of Monsanto seeds. The Costa Rica agri business has rejected the firm. The Jackass captured this grafiti on a wall, which has since been painted over. Translated, the Johnny Appleseed skeleton figure has inscription Monsanto Kills.
◄$$$ THE LONDON NEWSPAPERS IN 1862 THREATENED PRESIDENT LINCOLN... THE FINGER OF CULPABILITY IS POINTED AT LONDON BANKERS FOR ASSASSINATION OF AMERICAN PRESIDENTS... THE COMMON THEME IS GOLD STANDARD ADVOCACY. $$$
A London newspaper in 1862 appears to put a price on Lincoln's head at that time. President Abraham Lincoln and his Treasury Secretary Salmon Chase (same lineage as Chase Manhattan Bank in later years) went to New York and turned down 37% interest for the USGovt to borrow from the big powerful London banks. They needed to finance the Civil War. Instead, Secy Chase hatched the idea to simply print Greenbacks like the Founding Fathers did, called then the Continental Dollars. When Lincoln approved of the Greenbacks to finance the war, he earned the great ire of London bankers. They wrote regular Op-Ed pieces calling for Lincoln's death, a fact omitted entirely in US History books. The same history books omit the battle over market control for cotton and foodstuffs grown on Southern farms, the markets residing in the North. It is the Jackass firm opinion that Lincoln was killed by London bankers, who probably also had a hand in the assassinations of McKinley and Garfield. Those two US Presidents were strong advocates of the Gold Standard, which is anathema to bankers.
In the 1860 decade, the London Times featured the following editorial opinion, which should also raise alarm. "If this mischievious financial policy, which has its origin in North America shall become a fixture, then that Government will furnish its own money without cost. It will pay off debts and be without debt. It will have all the money necessary to carry on its commerce. It will become prosperous without precedent in the history of the world. The brains, and wealth of all countries will flow to North America. That country must be destroyed or it will destroy every monarch on the globe." Monarchs control nations by means of banks, using credit and phony money to enslave their victims in a web of debt. The real climax to their destructive project began in the 1990 decade, with asset bubbles busted in the last decade, and a climax in the current decade with the corner trap of ZIRP & QE.
Not to be left out, John Kennedy was a strong advocate of the Silver Certificate, which earned him deep animosity by the Wall Street and London banker hives. No question in the Jackass mind that the banker cabal and Langley conspired to murder Kennedy, to install Nixon, to abandon the Gold Standard, to introduce Kissinger as statesman, and to fill the void with the Petro-Dollar for Arab surplus recycle. As footnote, Papa Bush was given charge of the Dallas security detail to protect Kennedy on the fateful November day in 1963. Normally the duty falls under USDept Treasury Secret Service, but Bush from the CIA had other plans. As the motorcade turned the corner, Bush ordered all protective agents to be removed. It is all in the films to see. Never have Langley agents been assigned to protect sitting active presidents.
## GLOBAL RESERVE BATTLE
◄$$$ EXITING THE GOLD STANDARD HAS RESULTED IN STAGGERING DEBT AND USDOLLAR CREATION... CAUSE & EFFECT IS MORE DIFFICULT TO PROVE THAN MERE ASSOCIATION... ALL DISCIPLINE, ENFORCEMENT, AND ORDER HAS BEEN LOST... THE WEST HAS ENTERED THE WEIMAR ZONE. $$$
The last six years on the chart are projections, but the chart speaks volumes. The Keynesian clowns in the parlor claim that the debt has been used for notable purposes, to build the economy, to guarantee the safety net. However, the reality is of fraud, waste, war, and a dependent society, burdened by staggering debt and enormous imbalances, neither of which can be corrected. The graph is utterly shocking and not the least defensible. The Keynesians must forfeit control to the Austrian advocates. The heretics refuse to forfeit control of the wealth machinery. It is both fake and the root of capital ruin.
◄$$$ RMB DEVELOPING QUICKLY AS MAJOR WORLD CURRENCY... THE OFF-SHORE MARKET IS PROGRESSING... TRADE IN YUAN IS GROWING, AS IN BOND TRADE... LEGAL STRUCTURES AND INTERCONNECTED CHANNELS REMAIN BIG CHALLENGES. $$$
The Renminbi (RMB = Chinese Yuan, people's money) is on track to become the third most commonly used international currency behind the USDollar and the Euro within five years. The Chinese commercial merchants are accelerating its usage, while the Beijing officials increase the Yuan promotion. Last year, RMB cross-border trade settlement amounted to CHY 4.63 trillion (=US$746 bn), up 57.5% from 2012. It accounted for 2.5% of cross-border trade settlement worldwide. Data came from a report issued by Renmin Univ of China. By the end of 4Q2013, direct investment settled in RMB amounted to CHY 533 billion, a ripe 1.9 times the same period in 2012. The RMB is currently the fifth most widely used currency internationally. The British Pound is third and the Japanese Yen fourth in rank. The off-shore RMB market has been developing rapidly in recent years. In 2014 alone the Peoples Bank of China signed a memorandum of understanding regarding Yuan clearing and settlement arrangements with the central banks of the UK, Germany, Luxembourg, France, and South Korea. The next targets for expansion are likely to be financial centers in Dubai, South Africa, and Latin America. Challenges remain such as full convertibility, a daunting task. More RMB clearing systems must be installed, fully interwoven into current channels. Also, the legal framework must be made more sturdy and mature.
The RMB-based bond trade has grown nicely. By the end of 2013, the outstanding volume of international bonds and bank notes denominated in RMB rose 24.9% year-on-year to $71.9 billion. The issuers of RMB-denominated bonds expanded out of Hong Kong, reaching Japan and Canada. Next will be England and Germany, even Paris and Switzerland. The Chinese Yuan based bonds are increasingly used in banking systems as reserve capital. By the end of 2013, the PBOC had signed currency swap agreements involving a total of CHY 2.57 trillion with 23 countries and regions. That constitutes a huge amount of global trade settled outside the USDollar. They are all terrorists. See the China Business article (CLICK HERE).
◄$$$ CHINA IS TO DELAY THE MOVE TO FULL RMB CONVERTIBILITY... THE FULL STATUS IS EXTREMELY COMPLEX AND PAINSTAKING... THE IMPLICATION IS THAT BEIJING WILL LIKELY WAIT FOR THE USDOLLAR TO COLLAPSE, SINCE HOLDING A MUCH STRONGER HAND... GLOBAL RESERVE STATUS IS A DIFFERENT ANIMAL, NOT TO BE CONFUSED. $$$
The excellent source London Paul heard through his dedicated reliable Chinese source that the Beijing officials have decided to step back with a pause. They are in no rush to make the Yuan fully convertible. Some confuse the convertible Yuan with the global reserve status. They are not the same. The fully convertible RMB would mean it could be exchanged readily for any major currency (Euro, BPound, JYen, SFranc) easily and even for most secondary currencies (Aussie Dollar, SKorean Won, Thai Bhat, Brazil Real, Colombian Peso, Egyptian Pound, Turkish Lira). Convertible means convertible and nothing more, clearly not held as a reserve bond in banking systems far and wide. The next step beyond RMB convertibility would be reserve status, but later on. Full global reserve status would mean widespread usage of Chinese Govt Bonds in the banking systems of numerous nations of the world. Such is far bigger standing than simple covertibility.
The Beijing officials must see the Western FOREX currency system fracturing, held together by a mountain of derivatives and the Weimar press (QE bond monetization). They must also see the many Western banks ready to topple from grotesque insolvency. They also are dealing with their own financial distress. For those weak minded observers (critics) who believe China is in a weak position, they should learn that China has zero external debt and $3.6 trillion in foreign savings (FOREX reserves), of which $1.3 trillion is in the form of USTreasurys. To call them weak is utterly fallacious and patently stupid. Here is what London Paul reported.
"Beijing is quietly pushing back its loose timetable to make the Yuan freely convertible, policy insiders say, as the authorities fear removing capital controls too soon could unleash damaging speculative flows that will make it harder to reshape the economy. The source in China suggested the belief now was it was years off for full convertibility."
The comment on speculation risk is window dressing. They clearly wish to let the USDollar sink on its own heavy debt, deep fraud, and profound reliance upon the Weimar press. They clearly wish to let the Western banks (grand hollow reeds) fall, a guaranteed event that has begun. Everything is so difficult on implementing non-USD devices and platforms, requiring extensive machinery, cable connections, and hidden devices. The risk, complexity, unintended consequences are certainly all big factors. With less leaning on the RMB full convertible usage, expect China and other Eastern nations to rely upon more Euro, Yuan, and Ruble usage. They will work directly toward creation of the BRICS currency as contingency, rather than the currency to displace the USDollar. They might wish to stress the BRICS currencies as a group, to share the burden of global trade settlement. They will have the new BRICS currency at the ready, for when the USDollar inevitably collapses and dies a horrible death from debt saturation, bank insolvency, and excess reliance upon the Weimar bond monetization abuse. That so many Western (UK, London, European) analysts dismiss claims of severe USD vulnerability is testament to their poor training, lousy perception, and devotion to corrupted paychecks. Take away the USFed QE monetary press output for two months, and these same analysts will be largely out of work. The United States has been given more rope, more time, and more room for the cancer stick USD to be consumed and abused. Lately, defense of the USD by war is obvious, and quite untenable.
The issue comes back to the fact that the longer the Western financial insanity carries on, the longer the hyper monetary inflation carries on, the longer war is used to defend the USD, the worse the potential blowback will be, the worse the impact crater will be, both to the bank system from derivatives and to the economy from QE capital hits. This point is reiterated by London Paul in further comment. He said, "The longer the East holds off on implementing the USD alternative, the harder it will be to enforce change and the more risk there will be that they will all be taken down, the East included. This is the achilles heel of Putin/Xi/BRICS. Default is a sound strategy provided they can mitigate to a sensible level the risks to their own nations."
Time is NOT on the side of the USDollar supporters, engineers, and advocates. Some believe that if the current warped USD situation drags on another couple years, there is a risk that the fascist bankers will prevail because BRICS will lose its appeal. They believe direct implementation of alternatives will be far too difficult. The Jackass disagrees strongly. The longer the East waits, the more widespread the non-USD trade settlement will occur and the more diversification from USTBond banking reserves will occur, the more extensive the Yuan Swap will be used in bilateral trade. The East can take more time to experiment with Gold Trade Notes used as Letters of Credit. The East can develop further the Iran prototype, as in gold for oil trade with intermediary service in gold provision. Furthermore, more damage would be assured from USFed QE as well as Bank of England QE and EuroCB QE, the damage to their economies from capital destruction and higher cost structures. The Western banks have operated for five full years in deep insolvency, reliant upon bond carry trades and narco money laundering. In time, more banks of medium size will topple.
The forced agent is the implosion of banking system from rapidly accelerating economic decay, coupled with greater continued bank insolvency, aggravated severely by ramped up QE volume with corresponding capital damage. The key is capital destruction, since it acts as lit fuse to the existing system, forcing the bankers to vastly increase QE volume, thus creating a monetary black hole filled by the vaporous derivatives. The dark pools of banking activity have become the main pools, a situation that cannot continue much longer. The dependence upon derivatives is too great. Putin will wait for Ukraine and parts of Europe to collapse, the line of fire being banks. The key is Germany, which internally has begun to duke it out. The internal debates are sure to intensify between commercial and banker interests. The bankers will lose. The Voice made a simple comment in assent to the RMB convertibility delay. He said, "The Chinese are going to wait for the collapse of the USDollar. Why rush things if all is coming to you by default?" Exactly!
## UKRAINE LEGISLATES ITS RUIN
◄$$$ NEW CRIPPLING UKRAINE GAS TAX SHOULD DELIVER FINAL BLOW TO THE DOMESTIC INDUSTRY... KIEV OFFICIALS IN THE BRAINDEAD REGIME ARE BUSILY DESTROYING THEMSELVES... THE TAX IS DESIGNED TO FINANCE THE WAR, BUT IT WILL HASTEN THE REGIME'S IMPLOSION... INVESTMENT WILL BE HALTED, AND MARGINAL PROJECTS WILL BE SHUT DOWN... REFORM IS NOWHERE, AS OLIGARCHS TAX THEIR RIVALS INTO A MUTUAL WRECKING ZONE. $$$
In plain terms, Ukraine will destroy itself with a new gas transit tax. The insanity is beyond comprehension. Ukraine does not need Russia to cause its downfall. The Kiev Regime is fully capable of destroying itself. The new tax code effectively doubles taxes for private gas producers, which will result in irreparably crippled new investment in the energy sector at a time when reform and external investment were the country's only hope. Ukrainian President Petro Poroshenko on August 1st signed into law a new tax code requiring private gas producers in Ukraine to pay twice as much as before. A legislative package was approved by the mickey mouse Parliament on July 31st with more than 300 votes. The stated goal of the new tax code is to raise $1 billion, of which $791 million would go to fund the war effort in Eastern Ukraine. The Kiev Fascists, most of whose minister posts are filled by Mossad warriors, somehow could not secure narcotics funds to operate the government functions, or secure sufficient white women trafficking income either.
According to the Kyiv Post and Ukraine law firms, the new code will remain in force until the end of 2014, during which time gas drillers will be required to pay 55% of their subsoil revenue for shallow extraction less than five kilometers in depth. The measure features a hike from the current 28%, a significant hit for producers. Additionally, for any extraction deeper than five kilometers, the tax will be 28%, a hike from the current 15% rate. The aggressive taxation idiots had originally pursued a 70% tax on gas extraction. Conclude the taxes will kill the domestic industry. No longer will Ukraine be in a position to boast the most attractive gas prices in the world. No longer will investors be lured. They are as stupid as the British with punitive driller taxes. Note that in European countries, the tax does not exceed 20 percent. The oil sector will also be hit with the new tax code, which increases rates to 45% for drilling under five kilometers, a hike from the current 39 percent. Without question or equivocation, the gas tax hike will cripple potential investment in Ukraine. Scorched earth remains the rule. Private gas producers lobbied energetically against the new tax laws, arguing that it will crush investment and force investors to re-think their commitment to Ukraine. Many projects will be shut down, due to cost effectiveness. They argue that claims to fund the war are a diversion from benefits to members of the political business elite. Instead, critics point to the next phase in the battle among energy oligarchs to secure their interests in the dynamic political arena shaping up in the dead zone.
From Kiev, speaking to Oilprice was Robert Bensh, a veteran Ukraine energy executive, also partner and managing director of Pelicourt LLC. It is the majority shareholder in Ukraine's third largest gas producer, Cub Energy. He was highly critical of the new tax law and fearful of future impact. Bensh has been the most visible lobbying force against the law. He said, "This law is dangerous to the long-term security of Ukraine. It adds little to the budget and discourages drilling and investment in the upstream oil and gas sector, as well as calls into question the ability to invest in Ukraine at all. No one will invest in a country that arbitrarily punishes investors who are creating value by increasing reserves and production, or who are paying taxes and employing hundreds of thousands of people. No one will invest in an industry with the risk that taxes will be double or triple within a few months. The failure of Ukraine to develop gas supplies, either due to years of corruption and or failure to attract outside investment into the upstream sector, is a material factor in Ukraine's current economic crisis and issues with Russia. Ukraine has always sought the easy solution. This tax and the failure to see the strategic impact upon the country is yet again another example." Bensh accused two oligarchs of legal exploitation. He pointed to two key beneficiaries in energy magnates Rinat Akhmetov and Ihor Kolomoyski, who either own oil or mining assets that were taxed immaterially and punitively taxed gas producers, in his words. According to OP Tactical's intelligence wing, the tax code was clearly maneuvered by Akhmetov and Kolomoyski. These men are using tax policy to gain advantage against rivals. Expect no reform, only deeper corruption in a land known for decades of the same. See the Oil Price article (CLICK HERE).
◄$$$ UKRAINE PASSED A LAW TO GIVE UP TO 49% INVESTOR CONTROL TO THE EUROPEAN UNION AND THE UNITED STATES, FOR THE OPERATION OF THE NATIONAL GAS TRANSPORT SYSTEM... THE MEASURE SEEMS LIKE A DREAM SHOT NOT BASED IN REALITY. $$$
The Ukraine Parliament last week passed a law that permits up to 49% investor ownership by foreign partners to the country's gas transport system. The investors would come from the European Union and the United States. The measure was not a strong vote at all, passing by 228 in favor compared to 226 as minimum. The law grants foreign operators the right to the management and/or concession or lease of the gas pipelines and underground storage facilities. The law also allows the Ukraine Govt to establish a company to operate underground storage facilities, in which American and European investors would be able to own up to 49 percent. Expect some controversy here, since much theft from siphoned Russia gas has bee in focus. Amendments to the bill allow for their Parliament to approve the business partners for the country's gas transport system operator. Disclosure of stockholders and beneficiaries would be required. Reports on its activities would be required every five years, hardly overbearing.
The resident Lord of the Flies Yatsenyuk noted how few were interested in investing in their national gas transport system. The nation is war torn and descending into chaos, with vicious violent irrational clowns in charge. Finding partners in such a climate seems absurd on its face. He believes that the law will hinder the construction of the South Stream pipeline, which seems very much incorrect, since distrust of the criminal Kiev players is entrenched and longstanding over decades. The Lord remains hopeful of joint exploitation and modernization with investors from the European Union and United States. See the RIA Novosti article (CLICK HERE). Common sense and basic reason dictates that Russians will not allow any US parties to control its gas flow. Europe had better decide before winter to ally with Russia or freeze. Kiev does not make the rules. They are the puppet voice. The Kremlin will not permit the elite officers of the EU or US to control gas flows, period. Ukraine already steals (via siphon) in huge volumes. The Gazprom strategy has been to marginalize Ukraine, not open bids for invetment partners in shared control. Shown below are pipeline valves for the huge natgas storage facilities in Striy Ukraine.
◄$$$ UKRAINE ECONOMIC SUICIDE IS UNDERWAY... UKRAINE MAY BLOCK ALL TRANSIT FROM RUSSIA IN SANCTIONS BATTLE... THE FASCISTS IN CHARGE HAVE IQ LEVELS LESS THAN THEIR SHOE SIZE... KIEV STRIVES FOR INDEPENDENCE, BUT WILL INSTEAD CREATE AN INSOLVENT RUINED DEAD ZONE. $$$
Ukraine is prepared to impose sanctions against any transit via its territory, including air flights and gas supplies to Europe, according to braindead Prime Minister Arseniy Yatsenyuk. Kiev has prepared a list of 172 Russian citizens and 65 companies predominantly Russian to put under sanctions for sponsoring terrorism, supporting the annexation of Crimea, and violating the territorial integrity of Ukraine, in a whirlwind of putsch. Proposed sanctions include asset freezes, bans on certain enterprises, bans on privatizing state property, refusing to issue licenses, and a complete or partial ban on transit for both aviation and natural gas flow. The mindless fascists will squander the planned $17 billion IMF aid to achieve energy independence, finding none. The country is on the brink of economic default, but continues to make further destructive decisions. The next disaster is the failure of harvest from the rich farmlands.
Ukraine wants to end its gas dependence on Russia, its main source for energy. The nitwit Prime Minister estimates Ukraine could stand to lose $7 billion as a result of imposing sectorial sanctions against Russia. He spoke like a madman. The Ukraine Govt plans to mirror Western sanctions and target Russian financial, energy, and military sectors. Ukraine imports nearly 50% of its natural gas from Russia, which in 2013 totaled 27.7 billion cubic meters of natural gas. The nation has been spoiled with cheap Russian natgas for decades. If approved, a halt to Russian gas transit would hit Europe as the continent gets 15% of the energy it needs from Russia. In June, the Gazprom directive was for the Russian gas behemoth to stop deliveries to Ukraine, but to continue to ship 180 billion cubic meters of gas to Europe. Curiously and pathetically, Ukraine is also exploring reverse flow options, whereby the nation would import gas from neighboring European countries like Hungary.
In the event Ukraine cuts off gas transit through its territory, Hungary, Slovakia, and the Czech Republic will suffer significantly, claimed pipeline operator Transneft. Gazprom already has a northern pipeline route Nord Stream that bypasses Ukraine, delivering flow to Germany and other big importing nations. Gazprom is busy constructing South Stream to run to countries located in the Southern and Central European countries. To be sure, any transit ban targeting the EU will increase South Stream support in a massive reaction. Matthias Dornfeldt is political analyst at the Berlin Centre for Caspian Region Studies. He expects the proposal never to be approved, due to intense pressure from Brussels and other key actors. He implied the Kiev regime is not cooperative, acting in their own odd errant interests. The consequences of such a threat would only increase the EU's support for Russian projects that involve bypassing Ukraine, such as the South Stream pipeline. Dornfeldt concluded, "After hearing this, it is clear that all the states in SouthEastern Europe (like Austria, Hungary, Serbia, Bulgaria) will lobby much more for the construction of South Stream to get a very secure supply of gas." It has turned comical, as Kiev wanted EU inclusion, but makes rules not in unison with Europe generally. See the Russia Today Business article (CLICK HERE).
◄$$$ UKRAINE ECONOMIC SUICIDE IS UNDERWAY... ANY BLOCKADE OF TRANSIT FROM RUSSIA DUE TO SANCTIONS BATTLE WOULD EFFECTIVELY BRING A SUDDEN HALT TO THE ENTIRE UKRAINE ECONOMY, AND FORCE ITS SKILLED LABOR INTO RUSSIAN MIGRATION... THE RISE OF RUSSIA IS OCCURRING, WITH BROADER INDUSTRY TO EMERGE... THE EURASIAN UNION WILL GROW IN TIME, AS FAILURE AND REACTIONS EVOLVE. $$$
The Ukraine Govt plans to stop Russian gas transit to the European Union. Kiev is considering a package of 26 sanctions against Russia, targeting just about all important industries and facets of life, including Russian gas transit, machinery, aviation, transport, military, medicine, and more. The mindless Kiev officials are committing suicide, cutting off their own lines of sustenance. The Russian medicine ban hurts mostly their own citizens. The ban on military machines and other industry in cooperation with Russia will produce an estimated four million unemployed citizens, quickly to turn resentful. The newly unemployed are fully qualified engineers and skilled workers. They will have two choices: to emigrate to the EU and become taxi drivers, janitors, and post guards, or to move to Russia and work as skilled workers and engineers on new factories Russia is building to replace the old Ukraine industrial capacities.
Ironically history is repeating itself. Russia is fast becoming what America was in the 20th century, the destination for the masses of emigrants to escape disasters at home, and to find a better life, bringing their skills. The United States descends into a vicious fascism, hostile to business and citizens. Russia will benefit and raise its industrial capacity, just like America did a century ago. The Time of Russia is to be the 2020 decade, the nation appears to be destined to come as a major winner. It might happen with far less military conflict than is anticipated. As the months pass, Europe at large will grow disgusted with their American partner. The movement of Europe towards cooperation with China & Russia will be the glue and the bridge, the movement sure to intensify this decade and next. Only dramatic shock will make the EU leadership revise its policies, as in economic decline or energy curtailment.
The author of Futurist Trendcast expects Ukraine to eventually join the Eurasian Union, but only after another false step when the current regime collapses. He expects they will endure another maidan with blood on their hands, most likely before next spring. The next maidan will be just as non-sensical as the 2014 maidan was. Clearly, Ukraine will become diminished, as Novorossia secedes. He expects two or three different centers in Ukraine to emerge, each likely to become separate states. Western Ukraine will continue as captive province. The rest of Ukraine (possibly all) will join the Eurasian Union. As it existed for 23 years, Ukraine will never return to its past form. Eventually, more territories and countries in Europe will join Eurasian Union in some capacity as a way to tear themselves away from the US and EU. See the Futurist Trendcast article (CLICK HERE).
◄$$$ THE SOUTH STREAM PIPELINE IS TO BE CONSTRUCTED DESPITE THE RUSSIAN STANDOFF WITH THE WEST, AS COMMERCE WILL PREVAIL... THE FLIMSY EU LEGAL OBSTACLES WILL BE EASILY OVERCOME WITH DOMESTIC PARTNERS BEING ESTABLISHED. $$$
The growing conflict and impasse between Russia and the West over the stubbornly intractable situation in Ukraine will not affect the scheduled construction of the South Stream gas pipeline. The head of the Austrian energy group OMV is firm in his opinion. Gerhard Roiss said, "Nobody can tell you not to build a pipeline. It is a matter of national law. Everybody can decide for themselves. A pipeline is a 50-year project, so one should look at things realistically. A few months is not an issue. We have had integration in the area of gas with Russia for 45 years. Customers rely on getting their gas delivered. For that reason, I do not see any room for sanctions on gas. Four pipelines are better than three, and five are better than four. That is the pragmatic view." Roiss added that possible EU sanctions against Russia targeting the country's gas industry would be an unwise decision. The OMV chief elaborated, pointing out that Russia is already delivering natgas via the Opal pipeline with an annual capacity of 36 billion cubic meters, even though Gazprom had not secured an EU approval to run the pipeline at full capacity. Opal goes through Germany, connecting the new trans-Baltic North Stream pipeline with gas transmission networks in Western and Central Europe. Roiss insisted that an increase in the number of supply routes to Europe will benefit energy security.
The newest pipeline is South Stream, under construction. Gazprom will span the pipeline across the Black Sea to Southern and Central European countries with the goal to diversify export routes from the south to Europe for Russian gas. The construction started in late 2012, with the first deliveries expected in 2015. The pipeline is expected to have wider deliveries in 2016, and to become fully operational beyond. The European Commission is trying to obstruct the project, saying it violates the EU Third Energy Package banning the companies involved in gas production from owning long-distance pipelines in the region. The laws were hastily put on the books, thereby enabling the individual nations a measure of control. New companies are being formed quickly, creating independent operators who will partner with Gazprom. On June 24th, Gazprom and OMV signed a shareholder pact of the joint venture South Stream Austria, defining the principles of construction and further operation of the respective gas pipeline on the Austrian territory. See the RIA Novosti article (CLICK HERE). To be sure, some obstacles are in the path like Hillary Clinton firms lodged on the Bulgarian tracks. Their sinister motives are transparent. In time, expect these nefarious fascist figures and their devices to be pushed aside. It might not be an easy task, as Jaroslav has reminded me from St Petersburg.
◄$$$ WESTERN UKRAINE IS PREPARED TO DRILL FOR NATGAS, THE OUTPUT TO BE EXPORTED, THE OPERATIONS PROTECTED BY THE MILITARY, DESPITE LOCAL OPPOSITION... EXPECT LOCALS TO BE CRUSHED OR KILLED. $$$
According to local residents, unknown civilians under the protection of the Ukraine Military are preparing to install drilling rigs, using imported equipment. Over the past few years, the Slovyansk region has repeatedly held protests against plans for its development. It is in the Yuzovsky shale gas center. Residents of Slovyansk are going to hold a referendum on the issue. Expect them to be overrun by fascist corporate interests, possibly with bloodshed. Environmentalists worry about the implications used in the extraction of shale gas which rely upon the fracturing technology, since it has a firm record of contaminating ground water systems. The rich farmland of the western provinces is at risk. In May 2012, a competition for the right to enter into an agreement to develop Yuzovsky deposits was held by the State Service of Geology & Mineral Resources of Ukraine. The bidding battle was won by Royal Dutch Shell. After some fierce bloody fighting, Ukraine troops have begun preparing for extraction of shale gas. The locals note that Ukrainian security forces have taken the area of the proposed shale gas in the ring. See the Russia Today article (CLICK HERE).
◄$$$ CONTRADICTIONS ARE VAST, SINCE MANY FACTORIES IN EASTERN UKRAINE SUPPLY ENGINES AND OTHER EQUIPMENT TO THE RUSSIAN MILITARY... A LONGSTANDING SUPPLY CHAIN IS AT WORK, LOYAL TO RUSSIA, WHICH COULD BE VIGOROUSLY DEFENDED. $$$
Ukraine factories equip the Russian Military on a broad basis, in a nation deeply divided. The Ukraine defense plants do almost $1 billion of business per year with Russia, according to Anton Mikhenko, a defense expert at a Kiev-based think tank. In fact, Ukraine is the world's eighth largest defense exporter, as per Stockholm data. About 70% of Ukraine defense exports flow through Russia, the primary destination. Consider the massive Motor Sich factory with its 27,000 employees, which produces nearly all of the engines used in Russian military and transport helicopters, as well as a majority of their transport aircraft engines. The companies like Motor Sich resist the Kiev Regime pleas to halt the trade supply. The nation's industrial heartland builds engines specially designed for Russian military helicopters and planes. Most senior executives have decades of experience, dating back to the Soviet military industrial club as their Russian peers. To be sure, most or all senior executives, engineers, and higher ranked staff speak fluent Russian.
A game of cat & mouse has been ongoing, the company executives claiming they have not been formally ordered to halt supply, despite a presidential order in June to stop the export of defense products to Russia. The region's economy is dependent on the military industry, and without it would grind to a halt. The foot-dragging has frustrated some officials in Kiev. Clearly a shutdown would result in the majority of operations and workers heading to Russia in relocation. But a shutdown might result in greater insurrection against Kiev itself. Some factories have been moved from East to West within the nation, but not the military industry. The West led by US & EU seems intent on destroying the Ukraine defense industry, which Russia is dependent upon. Expect Russia to defend the western provinces. If the effort fails, it might take Russia up to three years to shift production from Eastern Ukraine, resulting in a squeeze. So, Russia military could be in a squeeze for 2-3 years. See the Washington Post article (CLICK HERE).
## RUSSIA TAKES MAJOR STEPS
◄$$$ PUTIN ADVISER GLAZYEV PROVIDED A GLIMPSE OF HIS WORLD VIEW, WHICH INCLUDES UKRAINE... GLAZYEV REGARDS THE COUP D'ETAT IN UKRAINE AS A PRE-EMPTIVE STRIKE TO PREVENT THE YANUKOVYCH REGIME FROM EXITING THE EUROPEAN UNION... HE SEES THE UNITED STATES ATTEMPTING TO GATHER IN EASTERN AND NORTHERN EUROPE TO FORM A BUFFER TO COMBAT RUSSIA... THE INTEGRATION ADVISER EXPECTS THE STRATEGY TO BACKFIRE AGAINST THE US AND EU, AND TO FAIL... GLAZYEV ADVISES THE RUSSIANS TO DIVERSIFY AWAY FROM THE USTREASURYS IN BANK RESERVES, AND TO SETTLE TRADE OUTSIDE THE USDOLLAR. $$$
Putin's advisor has revealed how he expects the Ukraine crisis to play out. Sergei Glazyev is President Putin's chief integration advisor. It was his promoted viewpoint to develop an anti-USDollar Alliance in order to halt US aggression, and to dump USTreasurys as a defensive measure. With the Ukraine conflict having escalated, with trade war erupting, the Glazyev advisor has shared his viewpoint on how the conflict will unfold over time. Begin with the origin of the Ukraine situation, the prelude to the coup d'etat led by the US and EU though mercenary proxies. Putin strived to lure Ukraine and its 45 million people into the alliance that features several former Soviet Republics such as Kazakhstan. Putin sought to build a trading bloc to rival the EU. The leader Yanukovych pursued closer ties with the Customs Union and pulled out of a vital agreement with the EU. He was summarily ousted in February (the Western propaganda story being an internal struggle, the reality being an externally funded US-EU mercenary coup). His successor, President Petro Poroshenko, signed the free-trade accord with the 28-nation EU bloc in June. The West has long considered Ukraine to be vital as a defensive stronghold on the Russia border, whose gas transit lines must be controlled.
Glazyev believes the United States and the European oligarchs are using a series of regional wars in order to secure control over all of North Eurasia. They strive to bolster the position against China. It is how the USMilitary and the Oligarchs attempt maintain leadership in the global competition with China, in his view. He expects the strategy to backfire. He expects the economic warfare conducted against Russia will end up leaving the EU to pay the steepest costs in the conflict. They will cut and run, abandoning the United States. Glazyev estimates the EU trading bloc stands to lose about EUR 1 trillion (=US$1.3 trillion), an estimate which includes the potential bankruptcy of several European banks and corporations. They are set to be toppled after the cutoff in financial and economic relations. An energy crisis in Europe will bring a sharp spike in prices and a loss of competitiveness for European producers. Meanwhile, Turkish, Chinese, and East Asian nations will fill the void left by the departure of their European rivals from the Russian market. The fallout will cost EUR 250 billion for Germany alone, while pushing the three Baltic states to the brink of an economic catastrophe, he predicts. Lithuania and Latvia will lose the equivalent of half of their entire economic output, and the cost for Estonia will reach 50% more than its gross domestic product, in his estimation.
Glazyev plans to defend against threats to Russian Economic security. He strives to neutralize them by reducing the dependence of the nation's external economic activity. He openly declared the USGovt aggression threatens the entire world. His conclusion is succinct and direct. To further insulate its economy, Russia should abandon the use of the USDollar as a reserve currency. Its FOREX reserves being the fifth largest in the world, Russia must diversify its holdings to include the Chinese Yuan, the Indian Rupee, and the Brazil Real. He stated in clear terms that the United States does not behave in a manner fitting to maintain the global reserve currency status. A gross understatement.
◄$$$ PUTIN URGES THAT THE PETRO-DOLLAR MUST END... THE USDOLLAR MONOPOLY IN ENERGY TRADE IS DAMAGING THE RUSSIAN ECONOMY. $$$
President Vladimir Putin said Russia should strive to sell its oil & gas for Rubles globally, because the USDollar monopoly in energy trade was damaging Russia's economy, placing it under great risk. He urged caution, citing development with other nations to trade in national currencies. Such countries include China, India, Iran, Brazil, and virtually every other emerging market nation. In recent weeks, Putin has been giving an unusual but effective emphasis to say that developed Western nations were almost all insolvent. Implicitly, he wishes for Russia to move aside as the Western nations implode from said insolvency. As footnote, Russia threatens to halt uranium supply to the United States, in response to recent sanctions. America imports about 95% of its uranium, with about 19% of all US electricity coming from nuclear power plants. See the UK Reuters article (CLICK HERE).
The great challenge remains to create the offices, windows, contracts, credit lines, letters of credit facilities, formal channels, and market integration to handle the non-USD flow. It is truly a daunting task. For a century, the world has left the banking task to the London Fascists. Along with the Americans, the London bankers have put their fascist aggressive corrupt practices in full view. Russia and the BRICS nations will continue the USDollar rejection with strong momentum and urgent motive.
◄$$$ THE MERKEL-PUTIN PEACE TALKS HAVE A CONSTRUCTIVE PACT IN WORKS... ANY UKRAINE PACT COULD DEAL A STRONG BLOW TO THE USDOLLAR, AS INDICATION WOULD BE CLEAR OF A GERMAN FLIP EASTWARD, AT LEAST MORE COOPERATION... EXPECT THE UNITED STATES AND BRITAIN TO SABOTAGE PEACE, AND REVEAL THEIR MOTIVES OF PERMA-WAR, IN LINE WITH THEIR FASCIST IDEOLOGY... MUCH IS OCCURRING BEHIND THE SCENES, SINCE GERMANY HAS ALREADY MADE THE DECISION TO WORK TOWARD THE GOLD STANDARD WITH RUSSIA & CHINA, ON ALIGNMENT WITH BRICS NATIONS... THE DOOR IS OPEN FOR PEACE, NEW BORDERS, AND A FRESH NATGAS WORKING MODEL WITH A MODERN LOOK. $$$
The German-Russian pact might have surprisingly simple elements in it, which will defuse the situation and reveal the true sinister motives harbored by the United States and European Union. The elites in control wish to execute their plan to install a global fascism system, a totalitarian system. The creation of the Euro currency was designed to wreck the European continent, and bring it under single rule during the crescendo. The entire Ukraine theater is part of the end game. German Chancellor Angela Merkel is attempting to seize an opportunity to avert war, to avert economic destruction, and to avert a greater risk of conflagration. The US does not share such goodwill and constructive engagement any more than European pedafile fascists in charge in Brussels.
The Merkel-Putin pact is described as an energy security for land security deal, a Resolution Trade. The UK Independent broke the story, as coming into shape is a peace plan for Ukraine discussed by German Chancellor Angela Merkel and Russian President Vladimir Putin. It aims to stabilize Ukraine's borders and boost the country economically, with an energy agreement to ensure gas supplies to several reliant European nations. If Merkel's proposals were acceptable to Russia, the international community would then need to recognize Crimea's independence and its annexation by Russia, a very sticky point. The current Kiev Fascist regime would be forced to take a secondary role, a back seat, in a highly awkward setting. The sovereignty of Ukraine is in the balance, negotiated by external parties, since the natgas flow is so imporant, but also since the Crimean Naval port is so important. Once the fundamental resolution is achieved, a broader future energy diplomacy based on the Transition Trade would come next. It involves a longstanding broadbased technology transfer, complete with intellectual property (IP) in exchange for guaranteed energy supply and saving techniques in industrial application. Think steel mills and machine tool plants, even foundries.
All the above constructive motives collide with the US-EU motives, clearly centered upon scorched earth, wreckage of Ukraine for corporate exploitation, and creation of a dead buffer zone to halt the influence of Russia with the West. The Western Fascists wish to wreck the Ukraine bridge relied upon by Russia to supply energy to an increasingly dependent group of European client states. The US-EU elite wish to keep Russia in the Stone Age, to depose Putin, to install more Yeltsin-like puppets obedient to the Western energy pack. Behind the scenes is the emerging Eurasian Trade Zone often cited by the Jackass, which the US wishes to smash before inception.
Chris Cook calls it the End of Dollar Diplomacy, whereby the world has conducted a feint toward a unipolar military setting which stood in conflict with an economically bipolar world. The USDollar hegemony came to an end in Iraq in 2007. Since the collapse of Lehman Brothers in 2008, the global USD-dominated economy has been functionally dead and in zombie mode with insolvent bank structures. Cook raises an interesting point that the BRICS nations (Brazil, Russia, India, China, South Africa) have a daunting task to create an alternative bank-centric global reserve currency, fashioned around the Gold Standard. Its structure goes directly in opposition to the current deficit-based money creation system in place. The derivatives are like vests of Semtex and C-4 worn by the entire banking system, which threaten to implode the entire financial structures if they depart from the King Dollar Court. Complexity and integration over two generations is difficult to overcome, perhaps impossible without economic conflagration.
In relation to the Ukraine, there are two key factors to consider. Firstly, the US is in no position to intervene militarily. It lacks the national savings to finance a war, and has no broad superiority on the military battlefields. Full Spectrum Dominance is long gone. Secondly, the trusting relationship between Chancellor Merkel and the USGovt was terminally destroyed by the Snowden and subsequent NSA espionage revelations. The activity runs far deeper than is made public. As a result, Germany is now both politically willing and economically able to pursue its own energy diplomacy on unilateral terms with Eastern powers. Germany has begun to negotiate with Russia without the US or EU as baggage. Ukraine is complicated demographically. Crimea is ethnically Russian.
The peninsula province was the subject of an internal transfer to Ukraine within the USSR by Khrushchev, with no previous centuries of Ukraine roots. Despite objections by the US and UK, together with the Brussels lapdog barking, Merkel is prepared to cede Crimea to Russia in exchange for suitable guarantees. The US propaganda machine is endlessly trumpeting the illegal annexation of Crimea by Russia, when it never happened. Cook summarized that Ukraine politics has always been about dominion of gas resources, ownership rights of transit fees, control of gas flows, and battles between petty unscrupulous oligarchic factions seeking control of the considerable pie. Events in Eastern Ukraine is what happens when the Mafia obtains tanks, sort of an extension of the ethnic cleansing that occurred in Yugoslavia. If not in parallel, at least in rhyme.
Cook fully expects a political deal between Russia and Germany along the lines of what was reported in the Independent. It will definitely occur, and thus will provide at least a temporary resolution. If the USGovt and Langley engineers fashion a false flag major explosive event, then the resolution could be sidetracked. A great relief might come from the potential greater outbreak of war, the obvious US-EU desire. It has been two to three decades since the USGovt has favored trade over war. In fact, war is the biggest business to the USEconomy, alongside bank fraud. The chief US export is diabetes. As Cook explains, the current oligarchic structures will face a rough transition into the emerging networked economy. They will be demoted in their own land. He describes a feared 1930s style outbreak of fascism and nationalism, but such seems outmoded in a globalization trend, where global winds prevail. In his analysis, global politics is overshadowing the concept of nation states in favor of more fluid and seamless institutions based upon subsidiaries and partnerships, linked mobile communications, and vast information networks that feature pervasive direct instantaneous connections.
Energy cooperation in the past has gone away. At an oil and gas conference in Istanbul last year, the sheer scale of operations were on display. Surely not their intention, top Ukraine gas officials made an embarrassing presentation on energy flow in Ukraine. A staggering admission was made that of the Russian natural gas which enters Eastern Ukraine, only 50% exits Western Ukraine en route to European Union customers. The majority is used with great waste in profligate manner by the indigenous population, well spoiled by virtually free Soviet Era natgas (to the proletariat). Much is lost in an aging enormously inefficient transmission infrastructure. Much is taken by a vast array of middleman taking tolls, filling their pockets, a toll booth every 100 meters so to speak. They extract profits either opaquely or in some cases transparently. The current intermediary system is ridiculously out of date, and must be updated, a regular Gazprom complaint and urgent directive. The implication was that a huge amount is siphoned off by the Ukraine oligarchs and officials, in grand theft. They even have expansive underground storage facilities to hide their stolen product.
Challenges abound in the upgrades. An EU funded report by the global engineering consultants Mott MacDonald demonstrated how EUR 3.2 billion (=US$4.3 bn) investment in upgrading Ukraine's pipeline infrastructure would pay for itself in a short timeframe, but such projects have been short circuited. The problem for technology firms such as Siemens, which provides state-of-the-art gas compressor technology, is how to successfully engage and be compensated in countries like Ukraine which is beset by problematic legal and financial infrastructure, and by thieving villains. The Siemens equipment was on show in Istanbul. The current natgas business model that features a chain of Ukrainian and EU intermediary middlemen is no longer sustainable. The conventional equity and debt finance capital approach is rendered useless where the rule of law is weak, like in Ukraine.
A market model solution must come, and the Merkel-Putin Trade Peace Talks could achieve both peace and an updated business model. The PayGo Gas for Service model will somehow prevail, whether instead of war or after war. The usage of prepay credit instruments issued by suppliers like Gazprom will arrive, with credit for payments following natural gas supplied. Cook describes how the usage of generic energy credit instruments for financial settlement enables conjured currencies such as USDollars and Euros to be dispensed with other than as a unit of account or numeraire. There is no reason why such a unit of account must necessarily be the USDollar, which will be phased out. Watch the Gold unit enter the equation. See the Asia Times article (CLICK HERE). Author Chris Cook is a former director of the International Petroleum Exchange, now a strategic market consultant, entrepreneur, and commentator.
◄$$$ RUSSIAN LUKOIL PULLED OUT OF THREE CENTRAL EUROPEAN STATES IN ITS GASOLINE STATION BUSINESS... IT IS LEAVING UKRAINE ALTOGETHER. $$$
LUKoil said in a statement on August 4th, it was selling its gasoline stations in the Czech Republic, Hungary, and Slovakia. The company called it part of an optimization plan, to be sure to exit the war zone shadow. The decision came when CEO Vagit Alekperov warned of a trimmed investment program as a result of Western sanctions against Russia. The European Union and the United States have so far refrained from imposing sanctions on LUKoil. Their latest rounds of sanctions effectively shut Russia's state-owned banks out of Western capital markets. The result has been to limit access to financing both at home and abroad for Russian companies. LUKoil had earlier announced it was pulling out of Ukraine. Expect Russian companies to integrate other Asian financial channels in response, thus pushing the Eurasian Trade Zone cradle into more non-USDollar activity. See the Radio Free Europe Radio Liberty article (CLICK HERE).
◄$$$ VLADIMIR PUTIN SIGNED AN HISTORIC $20BN OIL DEAL WITH IRAN TO BYPASS WESTERN SANCTIONS... DEFIANCE IS TURNING RAMPANT... THE DEAL IS NOT NEW, BUT ITS SIGNED CONTRACT IS INDEED NEW AND IMPORTANT... A COMMON THEME TO USGOVT SANCTIONS IS THEIR TARGET OF ENERGY GIANTS IN THE GLOBAL ECONOMY, WHICH DO NOT WANT TO USE THE USDOLLAR IN PAYMENTS. $$$
Vladimir Putin signed an historic $20bn oil deal with Iran which effectively bypasses Western sanctions. Expect more parties to ignore the sanctions, and favor commercial trade. The trade deal with Iran enables Russia to sidestep Western sanctions on its energy sector. Under the terms of a five-year accord, Russia will help Iran organize oil sales as well as to cooperate in the oil-gas industry, the construction of power plants and power grids, the supply of machinery, as well as consumer goods and agriculture products. Russian Energy Minister Alexander Novak promised that his government will assist Iran in bringing its oil to market. In return, Iran wants to import power and pump equipment, steel products such as pipes, machinery for its leather and textile industries, wood, wheat, pulses, oil seeds, and meat. In addition, Iran stated keen interest in the joint construction of power generation and development of coal deposits. Further constructive talks between the two countries will take place next month.
The deal features Russia buying 500,000 barrels of Iranian oil per day, highlighted in the Hat Trick Letter a few months ago. Russia does not need the Iranian oil, but instead pursues cooperation in the non-USD oil business with its many partner nations. The Kremlin is defying the USGovt sanctions. The total would be about a fifth of Iran's output in June and account for half its exports. The substance of fulfilling the contract could involve various practical limitations in terms of Iran's current production capacity, geography, and shipping logistics, as well as obstacles from continuing USGovt sanctions. The move is a win-win for both nations, each subjected to onerous and nettlesome ubiquitous sanctions by a USGovt totally out of control, submerged in criminality itself. The Western sanctions, in addition to war efforts, are aimed at limiting energy sectors for the two energy giants. Neither nation has any further desire to use the USDollar in the payment system, which is the real threat to the United States. See the UK Telegraph article (CLICK HERE). Expect the USDollar to die from avoidance, abuse, and quarantine. Expect the USDollar to die from ten thousand cuts in neglect. The USD has become an albatross to pull the nation into the Third World.
◄$$$ YUAN-RUBLE EXCHANGE SET A RECORD IN JULY FOR TRADING ACTIVITY AT THE MOSCOW FOREIGN EXCHANGE MARKET... ACTIVITY IS EXPECTED TO GROW RADICALLY FROM ASIAN PARTICIPANTS EAGER TO EXIT THE USDOLLAR, AND THOSE WHO WISH TO MANAGE TANGIBLE TRADING RISK. $$$
The Moscow Exchange Group is the main trading venue in Russia. A new record volume was set in the trading of the Chinese Yuan & Russian Ruble (CNY/RUB) currency pair on its FX Market. Expect quantum leaps higher levels to come as the construction and implementation of the Holy Grail energy deal becomes a reality over time. As the lunatic US and EU economic sanctions regime continues to be placed on the Russian Govt, the nation is forced to look to the Chinese market for business opportunities. It will seek investment in China and Eastern Asia. As priorities shift, the importance of the Yuan trade rises in tandem. Expect furthermore that additional European trade is conducted on the sly in Yuan currency, with full Beijing cooperation.
The CNY/RUB trading volume at the Moscow Exchange for July 2014 was CNY 3.8 billion, a new monthly record. The average daily yuan trading volume in July was CNY 166 million, also a record. The number of traders conducting operations in the currency in July increased to 80 parties. The trading volume on July 31st alone was CNY 665.6 million, the largest daily volume since the mart's 2010 launch, which included 25 banks in activity. Trades were made in all CNY/RUB types of instruments. Spot trades totalled CNY 212.2 million, and swap trades came to CNY 453.5 million. A long-term swap with one week maturity was traded for the first time.
The increase in Yuan/Ruble liquidity was driven by significant reforms of its FX Market in 2013, the Moscow Exchange made known. These reforms included a) partial pre-deposits of funds introduced, b) the use of Yuan as collateral, c) TOM instruments and swaps with maturities of up to six months, d) extended trading hours, and e) reduced fees. Analysts expect the growth to increase leaps and bounds, due to global circumstances. The CNY/RUB turnover will continue to grow because of the increasing demand for Asian currencies from Russian market participants, as they shift funds to safer locales. Many major players are eager to move from the USDollar into direct settlement. They also require usage of the Moscow Exchange as an instrument to manage counter-party risk. See the FOREX Magnates article (CLICK HERE).
◄$$$ RUSSIAN OLIGARCHS HAVE SWITCHED FROM VISA TO UNION PAY, THE CHINESE CREDIT CARD SYSTEM... THEY ARE NIMBLE AND QUICK... THE USGOVT ACTIONS SEEM PETTY AND INEFFECTIVE. $$$
Russian oligarchs waved goodbye to VISA, as they switched to the Chinese credit card system named Union Pay. The concept of isolating Russia is absurd on its face, and an insult to one's intelligence in practicality due to its size, scope, and supply networks. Russia continues to sign de-Dollarization deals and trade agreements with its BRICS allies. The sanctioned friends of Putin are taking matters into their own hands, and merely changing the cards in their wallet in a deft maneuver. Billionaire oligarch Gennady Timchenko was among the first to be hit by travel bans and asset freezes by the USGovt. He tore up his VISA and MasterCard, then shifted all his credit cards to China's UnionPay. He made a public quip that was caught on record. He said, "In some ways it is more secure than VISA, since at least the Americans cannot reach it." Timchenko's wife recently had surgery, but the work could not be quickly paid for because of blocked accounts and cards. Russian President Vladimir Putin described the incident as a violation of human rights.
The over-reach and abuse on all financial tables and channels by the USGovt is beyond intolerable. While the Obama Admin hopes that pressure on the oligarchs will create some civil strife for Putin, expect a backlash instead. The United States will be cornered, and the US President made to left to be seen as ineffective and petty, possibly forced into survival mode. Coming are significant repercussions for the West in general and the US in particular. See the Zero Hedge article (CLICK HERE) and the ITAR-TASS article (CLICK HERE).
◄$$$ RUSSIA HAS LAUNCHED CHINA UNIONPAY CREDIT CARD IN A BIG SPLASH... UNIONPAY IS NOT A SMALL PLAYER, WHICH IS BUSY EXPANDING BEYOND ASIA... THE LOSERS ARE VISA, MASTERCARD, AND AMERICAN EXPRESS... ANOTHER FIANCIAL SEGMENT WILL BE LOST FOREVER BY THE US-BANKS. $$$
China-based UnionPay is not a minor player. With 3.5 billion card users, it overshadows VISA and MasterCard together with 3.1 billion users. But UnionPay is the dominant card in China and Taiwan. It has a zero presence in Russia, which until June had 65% market share for VISA and 35% for MC. All that is about to change. After the two American credit system payment companies froze accounts without notice in March, Russia has secured an alternative in China UnionPay, a giant in the field. Merchants in Russia will start to display the China Union Pay across the many locations. China UnionPay first emerged in 2002 on the domestic Chinese market as an alternative to VISA and MasterCard, but quickly expanded internationally. It has vaulted to the #1 post in terms of quantity of cards in the world.
The biggest Russian banks, namely VTB, Gazprombank, Promsvyazbank, Alfa Bank, MTS, and Rosbank, are already making technical preparations, running tests on Union Bank cards. VTB already had ATM network access to Union Pay, next to acquire retail merchants. In March, both VISA and MasterCard blocked the accounts of cardholders at Bank Rossiya and SMF Bank, both oddly sanctioned by the USGovt over Russian involvement in Crimea. The backlash in lost business will be enormous. The irony is thick. As a result of the freeze, VISA and MasterCard will will be compelled to pay a security deposit to the Russian Central Bank, which is estimated to be $billions for each company. Similarly, once UnionPay begins operating in Russia, it will also put down a security deposit with the Russian Central Bank, about $3.5 billion.
In terms of total world trade turnover, China UnionPay is the leader in debt cards, with over $5.3 trillion in payments, or about 47% of the market share, whereas VISA has 40.6%, and MasterCard only 12.2%, according to the Nilson Report. In overall transactions, Visa is still the leader with $4.6 trillion, and China UnionPay comes in second with $2.5 trillion in transactions in the first half of last year. UnionPay has reached beyond Asia. It already successfully operates with merchants in Australia and Canada, with deposits tied to both the local currency and the Yuan. In total, UnionPay operates in 142 countries. China UnionPay will be a temporary solution for Russia to detach from the West while it prepares to launch its own payment system in the near future. The nation has a ways to go in developing financial structures. See the Russia Today article (CLICK HERE).
◄$$$ HUGE OBSTACLES IN $400 BILLION RUSSIA CHINA GAS DEAL... THE PRACTICAL ASPECTS OF THE CONTRACT CALL FOR A HUGE VOLUME TO BE SUPPLIED, PERHAPS MORE THAN CHINA REQUIRES... IF CHINA STUMBLES ECONOMICALLY, THE DEAL COULD STALL IN ACTUAL DELIVERY WITH PAYMENT... GAZPROM HAS SOME TRULY ENORMOUS CAPITAL OUTLAYS FOR PIPELINES TO CONSTRUCT... WATCH BRICS DEVELOPMENT FUND ENTER THE PICTURE FOR PARTNERSHIPS. $$$
The geopolitical motive is in abundance for Russia & China to consummate a new partnership in energy provision. However, the devil lies in the details. In an insightful analysis, oil & gas expert Kent Moors pointed out that while the deal meets many long-term goals, key issues remain. As is usual with Russian gas deals, it is in the form of a take-or-pay contract. This means that China must commit to taking a certain quantity of gas each month, or else pay as if it had taken the entire quantity. The main problem with this, Moors points out, is that "China does not need, nor can it absorb, the volume called for in this deal. At present, gas accounts for no more than 30% of China's energy needs. What's more, that total is already completely met for at least the next six years, with a combination of domestic production and ongoing import accords with Turkmenistan and Myanmar. Also, the infrastructure [in China] does not even exist to use what Russia expects to sell. It might in a decade, but Gazprom needs the revenue now. [Despite obstacles,] the fulcrum of the global energy trade is gravitating to the Asian and Pacific market."
In addition, Russia is also in talks with Japan and South Korea to provide them with major gas flows. Its most cost-effective way of doing this would be to have a single pipeline to China with branches off to SKorea and Japan. But, according to Moors, China wants a dual pipeline for its own purposes exclusively. Therefore Gazprom faces having to fund an exceedingly large capital expenditure program in order to satisfy all their goals, and make them a reality. Moors raises the key question as to whether the burgeoning Asian and Emerging Market demand, and their intensified drive to move away from the corrosive use of inferior grades of coal, will be met with pipelined gas, or via LNG tanker transport. All these decisions have huge multi-year implications.
A flat Russian Economy, and one embroiled in war on the Black Sea corner, is not conducive to heavy capital outlays. The energy monopoly giant Gazprom is under attack from the West, which is actively seeking to block construction deals and pipeline routes. Look for the BRICS Development Fund to enter the equation soon. Joint funding deals will become common, and Russia energy networks might be a bigger beneficiary than African railroads and South American port facilities. See the Economy Watch article (CLICK HERE). Nobody said it would be easy to link the two big superpowers in energy pipelines, but capital is there, motive is ample, and time is aplenty.
◄$$$ NET PROFIT AT ROSNEFT ALMOST DOUBLED IN THE LAST YEAR. $$$
In line with Intl Financial Reporting Standards, net Rosneft profit for the first half 2014 increased 1.9 times from RUB 137 billion to RUB 260 billion. Growth was measured for comparable periods this year versus last year. Together with its partners, Rosneft worked out measures to minimize the consequences of any sanctions, stated CEO Igor Sechin. See the Vesti Finance article (CLICK HERE).
◄$$$ THE CHINESE PRESIDENT ARRIVED IN CUBA FOR A STATE VISIT, AS ECHO TO PUTIN'S VISIT LAST MONTH... THE AGENDA IS CLEARLY DEVELOPMENT AND ENCIRCLEMENT. $$$
First a visit by Russian President Putin a month ago, and next a visit by Chinese President Xi. Two presidents from Eastern superpowers suddenly visited Cuba, seen as a strategic island nation. The basis of the trips was to develop trade and the off-shore energy resource. Suddenly Cuba is on the radar. The deep oil deposit is a substitute justification for setting up another post in the ring fence. The US energy giants want no part of the Cuban oil deposit. So Russia & China will step into the void, and possibly win some naval bases as bonus. During the global financial war (with hidden epicenter on the USDollar), suddenly Cuba has become a very important island in geopolitics. The R&C tagteam want a Cuban transformation on the US back patio. They can accomplish it with some reform by Raoul Castro, and plenty of oil & gas wealth infusion. The Castro Clan (basic crime syndicate with multi-$billion Swiss bank holdings) can promote the transformation of the backward pathetically poverty stricken nation with some common sense reform. They finally eradicated their stupid laws against private vegetable gardens and travel restrictions. It is not clear whether Putin and Xi made the first gesture, or whether Raoul made the initial phone call. Cuba has a chance to exit the North Korea status of abject poverty and wanton destitution, deep deprivation, widespread hardship, and deficient need. See the Xinhua article (CLICK HERE).
## SANCTIONS & IMPACT TO EUROPE
◄$$$ USGOVT SANCTIONS ON RUSSIA MAY SINK THE USDOLLAR IN A GRAND BACKFIRE... PRESSURE ON EUROPE TO ENFORCE ENDLESS NEW RULES WILL RESULT IN REDUCED ALLIANCE WITH THE UNITED STATES AND ITS CURRENCY USAGE... THE WORLD IS GROWING FRUSTRATED WITH SUBSIDIZING A HOSTILE NATION THAT EXPORTS ITS BURGEONING DEBT, IN BOTH SOVEREIGN OPERATIONS DEBT AND TRADE DEBT... THE USDOLLAR FACES IRRELEVANCE. $$$
Recall the Iran sanctions, which produced the Gold-Oil transaction model, the energy payment workaround, the prototype for gold trade settlement. Recall the Muslim Brotherhood activity in Egypt and Syria, which produced a divorce with the Saudis, their movement to court extensively the Chinese. The Petro-Dollar faces death row as a result, with only stays of execution on the horizon. The debris from the deeds resulted in Cairo turning East, developing Russian ties. Most USGovt actions in the last few years done in retaliatory manner have backfired. The Russian sanctions will be no different, except in the volume and intensity of the USDollar rejection globally.
Ron Paul expressed strong opinions against the USGovt strategy. His opinions follow. with some passages taken verbatim. The decision by the USGovt to apply more sanctions on Russia is a grave mistake, which will escalate a tense situation, and ultimately do great harm to the USEconomy. Russian banks and companies, even oligarchs, are under fire. The long-term effect will be to force the eventual demise of the USDollar as the world's reserve currency. The USGovt is using a full court press, pressuring the Europeans into enacting harsh sanctions against Russia as well. Given the amount of business that European banks do with Russia, expect significant harm to Europe. The sickening irony is that the United States officials expect cooperation from European banks, while they are being prosecuting with levied fines in the $billions for violating existing US sanctions. In time, one should anticipate the European banks will lose all remaining patience in acting as USGovt unpaid policemen and victims on the back alleys. The European banks are already cutting ties with American citizens and businesses, due to the stringent compliance required by recent laws such as FATCA (Foreign Account Tax Compliance Act). In the quest by the IRS (tax gathering USGovt agency) to suck in as much tax dollars as possible from around the world, the agency has made Americans into the pariahs of the international financial system. As the burden the USGovt places on European banks grows heavier, it should be expected that more and more European banks will reduce their exposure to the United States and to the USDollar, eventually leaving the US isolated. Attempting to isolate Russia, the US actually isolates itself, a point shared by the Jackass for several months.
Another effect of sanctions is that Russia will build closer ties to its BRICS allies. These countries count over 40% of the world's population, have a combined economic output almost equal to the US and EU. They possess significant natural resources at their disposal. Russia is one of the world's largest oil producers and supplies Europe with a large portion of its natural gas. Already Russia & China are signing agreements to conduct their bilateral trade with their own national currencies outside the USDollar. As the trend spreads further, it will continue to erode the USD position in international trade. Perhaps more importantly, China, Russia, and South Africa together produce nearly 40% of the world's gold, which could play a role if the BRICS countries decide to establish a gold-backed currency to challenge the USDollar in its supremacy.
Ron Paul warns that the United States has lost much of its dominance, no longer able to use the Full Spectrum Dominance. It is long gone, although the great majority of American citizens might be unaware of weapons details. US policymakers fail to comprehend that their overbearing actions toward other countries, even those considered friends, have severely eroded any goodwill that might previously have existed. Current US policies (both monetary and military) have put the rest of the world on edge, even motivated them into action. Other countries around the world seek to negotiate monetary and trade compacts outside the USD sphere. The rest of the world is tired of subsidizing the USGovt enormous debts, and tired of producing and exporting $trillions of goods to the US shores, only to receive increasingly worthless USTreasury Bond markers in return. They will never be redeemed. Paul concluded, "The US government has always relied on the cooperation of other countries to maintain the dollar's pre-eminent position. But international patience is wearing thin, especially as the carrot-and-stick approach of recent decades has become all stick and no carrot. If President Obama and his successors continue with their heavy handed approach of levying sanctions against every country that does something US policymakers do not like, it will only lead to more countries shunning the dollar and accelerating the dollar's slide into irrelevance." See the Ron Paul Institute article (CLICK HERE). The Jackass believes the USD will die of ten thousand cuts and a grand organized shun.
◄$$$ EUROPE IS FURIOUS THAT PUTIN DARED TO RETALIATE TO SANCTIONS... THEY BLAME A FIERCE ECONOMIC SLIDE ON THE KREMLIN, WHEN THE ORIGIN WAS WASHINGTON... EXPECT THE EUROPEAN ECONOMY TO FALTER BADLY, AND TO ACCELERATE INTO THE PITS... EUROPE IS TEN TIMES MORE VULNERABLE TO RUSSIAN SANCTIONS THAN THE UNITED STATES. $$$
Bear in mind initially that Europe is run by a bunch of unelected men, many pedafiles, with cozy Brussels offices. Sitting as elected national leaders are the queer EU elite commissioners, fascists one and all. They have blindly followed the United States, complicit in propaganda, most being well aware of the false motives for war in Ukraine. They have with knee-jerk, imposed sanctions against Russia without evaluating the effect at home. Retaliation for sanctions has put Europe in the front line for reciprocal damage, unlike the largely insulated US. The blind European commissioners appear finally to be shocked and angry that after several rounds of sanction escalations, Russia finally unleashed its own round of sanctions. The Kremlin has imposed a one-year ban on all European food imports, which will aggravate the already entrenched recession. The errant fools who run the unelected offices of Europe charge Russian Federation with acting on political motives. They stand on their phony high ground, calling for restrictive measures against Russia, while misrepresenting events in Crimea and destabilization of Ukraine (done by Langley and Soros mercenaries). They state lies of how the European Union remains committed to de-escalating the situation in Ukraine. The truly mindless idiots at the EU Commission have actually prepared an appeal to the World Trade Organization to have the Russian agriculture import bans lifted, a European diplomatic source told ITAR-TASS.
Sanctions are a two-way street. In the meantime, European counter-retaliations to Russia's retaliation in reaction to European sanction aggression is sure to make the already bad trade war worse. A trade war will show up in horrendous GDP figures for Europe. Ironically, expect that Putin will soon become Draghi's best friend. As a result of Putin aggression, Draghi will have no choice but to boost the Euro Central Bank monetary insanity. Prince Mario crossed into the NIRP twilight zone, even beyond the rabbit hole. The negative interest rate policy is the incestuous cousin of the USFed's Zero Interest Rate Policy. Both policies are magic elixir that wreck domestic financial markets, ruin asset pricing, misdirect resource allocation, all of which are wildly celebrated as constructive by morons in wait. See the Zero Hedge article (CLICK HERE).
◄$$$ THE ANTI-PUTIN ALLIANCE IS FRAYING AS GERMANY, SLOVAKIA, GREECE, CZECH REPUBLIC URGE END TO RUSSIAN SANCTIONS... A COALITION AGAINST THE WAR IS FORMING, NO LONGER AN EXERCISE OF RHETORIC... INDUSTRY FROM GERMANY AND FARM OUTPUT FROM GREECE RENDER THE GROUP AS BROAD... THE UNITED STATES LOOKS LIKE A WARMONGER AND ECONOMY KILLER (TRUE TO FORM FOR FASCISTS), WHICH WILL BE QUARANTINED. $$$
Tyler Durden summarized well. "Europe is about to enter its third recession since the Lehman collapse, just as we forecast at the end of 2013. [The outcome will be a] triple-dip which may become an outright depression unless Draghi injects a few trillion in credit money (which will do nothing but delay the inevitable and make it that much worse once the can can no longer be kicked), and unless normal trade ties with Russia are restored. Which means one thing: for Europe to resume the status quo, it needs to break away from the Western Alliance and the sanctions imposed upon the Kremlin which solely benefit the populist agenda of Washington, and certainly not Europe proper. It is now quite clear, [the continent] is far more reliant on Russia than vice versa. It is also something Putin apparently was aware of from the very beginning. And now, that realization is starting to spread to Europe's own countries, which, while the new Cold War was only one of rhetoric were perfectly happy to go for the ride, but now that trade war has finally broken out, suddenly increasingly more want out." Putin has played his hand perfectly, turning anger inward toward warmongers in Brussels. See the Zero Hedge article (CLICK HERE). The United States faces horrible isolation when the war is rejected. To be sure, Obama found the Nobel Peace Prize in a crackerjack box, a truly worthless trophy for a truly vacant leader.
◄$$$ RUSSIAN SANCTIONS ARE A POLITICAL NIGHTMARE FOR BRUSSELS... PRESSURE WILL GROW ACUTE TO SPLINTER THE EUROPEAN UNION... DAMAGE TO THE FARM SECTOR AND ITS SUPPLIERS WILL BE CONVERTED INTO SHRILL POLITICAL OUTCRY, DIRECTED AS BRUSSELS... THE BACKLASH WILL BE SWIFT, AS THE TRADE WAR GAME MIGHT INFLICT FAR GREATER DAMAGE TO EUROPE. $$$
The Russian embargo on food imports from the EU will have not only economic but deep political consequences. Expect many farmers to be ruined, the direct backlash. The Kremlin hit a sensitive nerve in Europe with its counter measure sanctions. Food shortages might cause revolution historically, but farmer distress surely causes deep political discord. Spanish, Polish, and Finnish officials have expressed their intentions to seek financial compensation from the European Commission. They are indignant and have turned hostile. The claimed solidarity by EU leaders is a vapor, a mist, a fart in the wind. No legal mechanism exists for to compensate the countries suffering from Russian retaliatory measures. The farmers will suffer. Many agri businesses will go bust, and China will buy them up. The political backlash will be as strange as acute. According to the EU ambassador to Russia, the European Union may lose up to EUR 12 billion (=$16 bn) as consequence to the Russian ban on food imports. However, this estimate is low. The trickle down effect will be painful, and cause the public outcry to come from beyond the farm sector. Indirect damage will be extensive. Farmers short on cash will not be able to pay their bank credit, their suppliers, and their workers. Affected countries, trade groups, agricultural unions, possibly even certain banks, will seek compensation from the European Union, rightly blaming Brussels for their woes. Never forget that Brussels based EU officials are not elected, part of the Fascist Ruling Elite.
The clowns who sit as warlord commissioners have no contingency plan for such the unfolding scenario. They should be watchful of future attacks. Stupidly, foolishly, carelessly, these bureaucrats never imagined that international sanctions is a game that can be played by more than one player. By banning European food imports, Vladimir Putin skillfully managed to shift the conflict into the chambers of internal European politics. The Western attack on Russia has been turned around, the momentum directed a the EU Commissioners. A split within the union is likely to appear very soon. The ruined farmers, the banks, the suppliers, and their employees will demand a quick end to the standoff between the European Union and Russia. Despite the rhetoric by leaders, the European people are not ready to sacrifice their industries in order to help the US advance its geopolitical ambitions in Ukraine, conducted by mercenary proxies. The hidden motive is to wreck the European Economy, so that both it and the USEconomy enter systemic failure, then full totalitarian rule. The ranks in the financial press in Europe have begun to see the light, even the dopey demented die-hard Russophobes. They will soon admit that European sanctions will fail to assist Ukraine. They will see sanctions as pointless. They will see sanctions as more US imported destruction, much like USD-based bond fraud. See the RIA Novosti article (CLICK HERE). Always keep in mind, the US is far less vulnerable to Russian actions. The US is fighting a proxy war with proxy mercenaries, to defend the USDollar, with Europe in the direct crossfire.
◄$$$ MOSCOW'S FOOD BAN COULD COST EU $16BN, SURE TO SPARK CRISIS IN EUROPE... RUSSIA HAS BANNED AGRICULTURAL PRODUCTS FROM EU, USA, AUSTRALIA, NORWAY, CANADA... EXCESS EUROPEAN FARM OUTPUT WILL ROT IN WAREHOUSES, AND BE GIVEN AWAY IN STORES AT HEAVY DISCOUNT... BANKRUPTCIES WILL OCCUR NEXT... FORMAL COMPLAINTS BEFORE THE WORLD TRADE ORG ARE NEXT. $$$
The details on counter sanction impact run deep. The full impact is being measured from lost business to Europe as a result of the Russian ban on agricultural food imports. A crisis in the EU awaits. The Russian Govt signed a decree in early August which bans the import of beef, pork, poultry, meat, fish, fruits & vegetables, cheese, milk, and dairy products from the EU, US, Australia, Canada, and Norway. EU trade is heavily dependent on Russian food imports. Last year Russia bought $16 billion worth of food from the 28-nation bloc, or about 10% of total exports, according to Eurostat. The impact on Europe will be to its most fundamental economic sector in agriculture. Products not exported will either rot in warehouses or flood the shelves with liquidated discounts just to move product. Some will not even be harvested, left in the field to rot, since costly to reap. The farmers face ruin, which could as a second step interfere with basic food supplies and cause shortage next year. A crisis situation is quickly unfolding.
The Netherlands, Germany, and Poland are currently Russia's biggest food suppliers in the EU. Not among the largest, Austria exported EUR 238 million of agricultural products to Russia last year. By contrast, the United States is a minor actor on the proxy war stage. The US shipped a mere $1.6 billion worth of food to Russia in 2013, ten times less than Europe did. Russia imports 36.7% of its meat, 32.6% of dairy eggs & honey, 30.4% of vegetables, and 24.2% of fruit from the EU. Europe will certaintly end up with nasty rotting surpluses, especially in fruits and vegetables. In 2012, Spain exported 100,000 tons of fruit to Ukraine and Russia, half of which might be stuck on the EU market. Xavier Beulin of FNSEA (Federation Nationale des Syndicats d'Exploitants), the farm worker union, does not anticipate the embargo will last long, since the World Trade Org will intervene. Curiously, Russia joined the WTO in 2012. Expect formal complaints to be filed very soon to the WTO. Moscow says the restrictions will be in place for at most one year, but is willing to review the counter sanctions only if Western nations re-start talks with the Kremlin on the Ukraine situation. See the Russia Today articles (CLICK HERE and HERE).
◄$$$ SANCTIONS BITE BACK, AS BICKERING AND INFIGHTING OVER RUSSIAN RETALIATION HAS BEGUN IN EARNEST INSIDE EUROPE... GREEK AND AUSTRIAN MEMBERS OF PARLIAMENT ARE OUTSPOKEN IN CRITICISM... THE ESTONIAN MORON ON THEIR BACKWATER THRONE RESENTS THE SWISS NEUTRALITIY... RESENTMENT TOWARD THE UNITED STATES IS GROWING, AS THE EXTERNAL INSTIGATOR SUFFERS FAR LESS IMPACT. $$$
Dissent has grown intense in the EU over policies that led to a Russian trade war. Nations that supported EU sanctions are suffering the impact. The union is at risk, hardly an exaggeration to proclaim. Greek members of the European Parliament demanded that the EU cancel sanctions against Russia. The Greek members argue that the Moscow response to anti-Russian sanctions was ruinous to Greek agriculture. Myriad small and mid-sized Greek farms producing fruit and vegetables are being crushed by lost income. They are critical of US and EU leaders. Greek farmers stand to lose an estimated EUR 200 million in direct damages, with added long-term consequences unless the counter sanctions are lifted. Winning back market share could be difficult later on. Similar angry sentiments came from Heinz-Christian Strache in Austria, whose right wing contingency holds 20% of seats in the lower house of national Parliament. Strache boldly stated, "In just a few days after the [Russian] sanctions came into force they hurt our agriculture. The EU is thinking on how to mitigate it. Instead of putting Russia on its knees, they drag our farmers to ruin with their senseless sanctions policy." Strache also lashed out at Kiev for considering a ban on the transit of Russian gas into Europe. The action would not hurt Russia as much as Austria. The strong Austrian voice made accusations of EU policy being an affront to their own allies and a mockery of the EU. In perverse manner, the EU might be forced to save Ukraine from bankruptcy in future bailouts. Stupidity abounds.
The German members of Parliament also have spoken out. Liberal Gregor Gysi criticized the Merkel officials for supporting the sanctions policy, which he called childish. He issued direct criticism for US President Obama, whose constant banter about sanctions has hit the Europeans, not the US residents. He advocated more talks, more discussions, more communication. The Swiss Govt did not agree to sanctions against Russia, and have been spared as a Kremlin target. The dopey drone running the Estonia front office lashed out at Switzerland, instead of examining their own suicidal policy. Their President Toomas Hendrik Ilves criticized Switzerland for taking a neutral stance in the conflict, thus spared in the backlash. Divisions have come. Switzerland is not an EU member, and therefore is not obliged to enforce any anti-Russian sanctions ordered by mindless unelected fascist EU leaders. The Swiss capital Bern cited a need to remain neutral, especially since it is now chairing the Organization for Cooperation & Security in Europe, a key mediator in the Ukraine crisis. If they are conducting mediations, they are doing so invisibly. See the Russia Today article (CLICK HERE).
◄$$$ SWITZERLAND WILL NOT BLINDLY FOLLOW EU SANCTIONS AGAINST RUSSIA... THE LAND OF BANKS, WATCHES, CHOCOLATE, AND YODELS MARCHES TO ITS OWN DRUMMER... THEY WILL EXPLOIT SOME OPPORTUNITIES, LIKE IMPORTANT ASSET FREEZES... THE REMOVED KIEV REGIME HAS ITS ASSETS BASICALLY STOLEN BY SWITZERLAND IN A QUIET MANEUVER. $$$
For Switzerland to mimic EU sanctions against Moscow is unwise, claimed Swiss Economy Minister Johann Schneider-Ammann. He stood on high ground, not to jeopardize the country's role as a mediator, an interesting approach. The Swiss Govt has no plans to follow in the EU's footsteps for to impose sanctions against Russia, in plain terms. The nation wishes to remain neutral, not so much out of conscience, but out of tradition. Anytime they wish to begin mediation would be fine and dandy. The nation of Switzerland holds the chairmanship of the Organization for Security & Co-operation in Europe (OSCE), which is said to be vitally important for peace talks between Russia and Ukraine. Another main concern for Switzerland, home to many Russian nationals, is any economic blowback from sanctions. They wish to stand clear of the domino effect of ratcheting sanctions, and all the negative impact.
Unlike its European neighbors, the Swiss rely upon Russia for well under 1% of its natural gas. Instead, the banking nation has deep financial ties to Russia. Switzerland is home to an estimated $15.2 billion in Russian assets as of 2012, not including reportedly a personal account held in the name of Vladimir Putin. The oil exchanges in Geneva account for 75% of Russian crude exports. Many Russians live in the country, wealthy oligarchs and other corporate titans, along with other ordinary mortals. Acting like good compatriots to the US-EU fascists, the Swiss banks have seen fit to freeze assets of ousted Ukraine President Viktor Yanukovich and other former Kiev Govt officials. Other official Kiev accounts were pilfered. The ousted regime had moved away from EU support and toward the Russian Customs Union, and were thus disposed of, their assets essentially stolen. In February, the Swiss financial regulator FINMA announced that the assets of former Ukraine President Viktor Yanukovich, his son Oleksander, and 18 other Ukrainians have been frozen. At issue is an alleged $70 billion siphoned over the past 3 years into offshore accounts. See the past Russia Today article (CLICK HERE). One can be absolutely certain that criminals in Kiev power were replaced by bigger criminals in Kiev.
European leaders have been increasing pressure on the Russian Govt for several months by imposing visa bans and asset freezes on a number of individuals that the EU considers responsible for Moscow's policy toward Ukraine. By contrast, many European countries have been reluctant to target entire sectors of the Russian Economy, such as the energy sector. The EU does not wish to shoot itself in the chest. But the Kremlin with its food sanction maneuever has shot Europe in the stomach. See the RT Business article (CLICK HERE).
◄$$$ THE US-EU COALITION IS CRACKING... THE SHRILL COMPLAINTS COME FROM THE HAMSTRUNG GREEKS, WHO LAMENT BLIND OBEDIENCE TO COLD WAR STRATEGIES OF BRUSSELS AND WASHINGTON... THE IMPORTANT REACTION WILL COME FROM GERMANY, AND ALSO FROM FRANCE... NATIONS ARE RE-ASSESSING THEIR POLICY OF WAR AND SANCTIONS, IN FAVOR OF TALKS AND PRESERVED COMMERCE. $$$
The empty headed battle cry of Stop Putin in Ukraine has turned inward, against EU leaders and government finance ministers who marched in lockstep, often with shoddy analysis, usually steeped with propaganda. The reaction has come swiftly after Europe realized that suddenly its food exporters are set to see their revenues plunge. Next come gaping trade deficits. The grand comical alliance to go to war has started to crack. Enter Greece with its outsized exposure to Russian exports. It is the first nation to hint that it may splinter from the Western alliance in favor of sanctions. The Greek foreign minister and former prime minister issued a public statement that defines walking a fine line to avoid severe consequences. Greece is trying to protect agricultural production, keep friendly relations with all countries, and fulfill its EU obligations. The challenge is awkward, since Athens must remain on friendly terms with the same artificial union that has kept it on financial life support for the past four years. Greece must weigh its disastrous ties to the EU for rapacious financial aid, versus its disastrous ties to the EU for lost farm exports. Among all the European nations, the Greek position is the most eerily precarious. The German and French positions are more clearly defined.
Greece has a major political firestorm brewing. The main opposition party Syriza declared that the Greek Govt's "blind obedience to the Cold War strategies of Brussels and Washington will be disastrous for country's agriculture. [Sanctions] instead fuel an economic and trade war, in which Greece has unfortunately become involved." In a moment of surprising clarity, Syriza asked to have lifted immediately all sanctions to Russia, since they contribute nothing toward any solution of the Ukrainian crisis. The party accused the Athens leaders of not weighing Greek interests in bilateral relations with Russia. The other nation with direct line exposure is Austria. They recently kicked Brussels in the shins over the pipeline issue. They aligned with Russia and the South Stream gas pipeline. Outwardly and directly, Austria made it very clear that the sanctions approach will not stand. With its EUR 238 million in farm exports to Russia, the nation is the third biggest exporter to Russian destinations. Their exports have grown in all but two years since 2006, with Austria last year mainly exporting prepared foods, meat, animal feed, coffee, tee, spices, milk.
Germany stands as the biggest wildcard in the pan-Eurasian counter USD alliance. To be sure, the Russian ban on farm imports will have a noticeable impact on the German Economy. The Agriculture Minister Christian Schmidt is very upset, and lamented the fizzle of constructive cooperation with Russia. He called unsuitable the political pressures that result. He actually reminded all that the boycott decision will also directly affect Russian consumers. Brilliant but off the mark, since the Germans signed on for the Russian sanctions in full obedience to the USGovt without much thought. A deep growing division comes to Germany. The idiotic propaganda policies will alter the voting patterns in the nation. The Suicidal Coalition is breaking in Europe, the big snap crack to come from Germany and also from France. See the Zero Hedge article (CLICK HERE).
◄$$$ TURKEY TO SUPPLY FOOD TO CRIMEA... A CONDUIT TO RUSSIA FOR FOOD SUPPLY COULD FORM, THEN LATER A CONDUIT TO TURKEY FROM GREECE... AN UNDERGROUND FOOD CHAIN COULD COME INTO VIEW. $$$
Turkey wants to supply food to Crimea, claims the head of the Russian agricultural watchdog. Sergei Dankvert has searched for suppliers in Turkey, given the convenient location of Crimea opposite to Turkey. An official delegation recently visited Ankara, where an agreement was reached to increase the number of food suppliers to Russia. The watchdog group Rosselkhoznadzor has held talks with 16 countries with a goal to ensure the Russian food market with alternative supply sources. The list of countries included Brazil, Uruguay, Argentina, Chile, Paraguay, Ecuador, Colombia, Peru, Mexico, Sri Lanka, Turkey, Belarus, Kyrgyzstan, Mauritius, Mozambique, and China. Notice half are Latin American. The EU Commission has already begun to apply pressure on the Latino nations not to fill the void. See the ITAR-TASS article (CLICK HERE).
A Western ally, out of the shadows, Turkey comes into play. Former friend of the West and NATO ally. This is sure to confuse the think tanks and commissioners. Keep in mind that Turkey is not a member of the European Union, and is neighbor to Russia. But Turkey is a member of NATO, for a possible conflict. First comes food supply to Crimea, then to Russia. Watch Turkey serve as possible conduit for Greek farmers to re-direct food supplies to Russia in an underground supply network. The Greeks are very angry, and motivated to find alternative solutions even if not proper. There might be no legal obstacle for Greece to ship foodstuffs to Turkey, from which point it is free to move efficiently.
◄$$$ SPAIN SEEKS EU COMPENSATION OVER THE RUSSIAN FOOD BAN... THE COMEDY INTENSIFIES, SINCE SPAIN SHOULD DIRECT THEIR CLAIM TO THE CONTROL CENTER FOR GLOBAL FASCISM IN USGOVT HQ OFFICES... FOOD WILL ROT WITHOUT BUYERS, AS FARMERS WANT COMPENSATION FOR THEIR PRODUCTION COSTS... AGRI FIRMS WILL FACE BANKRUPTCY QUICKLY. $$$
Spain has decided to seek compensation from the European Union as a result of heavy losses due to the Russian food ban. Spain will meet with EU officials to discuss offsetting their country's losses estimated at EUR 337 million in food and agriculture. The blocked access to the Russian market has hit hard to the heavily agrarian nation which supplies Europe in great degree. Spanish Agriculture Minister Isabel Garcia Tejerina will lead the delegation to the Brussels offices to meet the warmongering nazi pedafiles. The Ministry will analyze the impact and look to address possible solutions. The ministry will seek compensation for damages from the European Union, which is responsible for the war. Estimation the damage is not an easy task, almost as difficult as bring harvest to market. Much energy will be wasted. The Spanish Govt has estimated that agricultural losses will amount to 1.8% of total Spanish exports. Other groups, like opposition Socialist Party, have estimated the losses to be a higher amount at EUR 581 million. Last year, Spain exported 37,000 tons of tomatoes, 35,000 tons of peaches, and 33,000 tons of mandarin oranges to Russia, according to their UPA small farmers association. One quarter of Spain's EUR 111 million total meat exports were bound for Russia until the ban. For farmers and meat producers to find alternative markets on short notice will be next to impossible, since all other EU countries are in the same position. See the Russia Today article (CLICK HERE).
The comedy unfolds as the curtain is raised. Consequences have begun to arrive. The farmers in Spain should direct their compensation demands to WashingtonDC, where the warmongering fascist offices always keep the door open for a new war. They are the cause of enormous economic damage, millions of refugees, and more mayhem, without consequence, except to the upcoming global USDollar boycott. Maybe the USFed could offer a special QE Lemon Twist program. They could effectively monetize food perhaps, and monetize meat. Europe needs to tell the USGovt to shove it up their ass, then toss the Brussels unelected officials out the window, in that order. Russia is likely to tell the World Trade Org to get lost at the same time. Witness the US global trend setting and commercial influence, in order to preserve the corrupt corrosive USDollar.
◄$$$ RUSSIA'S IMPORT BAN MEANS A BIG BUSINESS OPEN DOOR FOR SOUTH AMERICA... RUSSIA MUST REPLACE 8% OF ITS TOTAL FOOD SUPPLY SOURCE... THE RICH FIELDS SOUTH OF THE EQUATOR IN THE AMERICAS CAN FILL THE GAP... RUSSIA ALREADY HAS LINED UP THE BACKUP SUPPLY CHANNEL, WHILE EUROPE HAS NOT LINED UP ALTERNATIVE BUYER DESTINATIONS. $$$
Expect sharply increased food imports from Latin America, specifically Ecuador, Brazil, Chile, and Argentina. The big consumer Russia will go shopping on other supermarket aisles. The doors are opened to Russian partners on the other side of the world. The challenge is for Russia to fill an 8% gap in its total agricultural imports. That amount is what it sources from the EU, USA, Canada, Australia, and Norway. Their biggest food suppliers within the EU are the Netherlands, Germany, and Poland. Look for meat and dairy products from Ecuador, Chile, and Uruguay to appear on Russian supermarket shelves as early as September, said Julia Trofimova, a consumer watchdog analyst devoted to Russian affairs at Rosselkhoznadzor. The Kremlin must have arranged the alternative supply routes in advance of the announced sanctions, like during the World Cup in Rio de Janiero. The three countries confirmed they are already prepared to start supplying Russia with agricultural goods. Moscow ministers will soon hold meetings with ambassadors from Brazil and Argentina. The backup plan is in place for Russia, but not for Europe, which will find its food rotting quickly. Logistics for Russia will be a big challenge. The winner will be the BRICS Alliance, which will develop more Associates across South America.
Consider what key Latin America economies have to offer. The main agriculture exports from Brazil are soybeans, raw sugar, meat, coffee, and tobacco. In 2012, the total exports to Russia were $3.14 billion, equal to 7% of the total $43 billion of goods Russia imported from now sanctioned countries last year. That is total exports, which include food and meats among many categories. To facilitate further export, the Russians must remove a restriction against Brazilian meat companies, imposed in July 2011. Before the restrictions in 2011, Brazil was the number one meat supplier to Russia. To be sure, agricultural products dominate Argentina's export lists. Russia already imports from the country pears, grapes, apples, citrus fruits, beef, peanuts, butter, and cheese. In 2012, the combined trade turnover exceeded $1 billion. Meat producers in Argentina are considering the possibility of increasing meat exports to Russia, but like Brazil, it faces trade restrictions.
In 2013, Chile exported $567 million worth of agricultural products to Russia, mostly salmon, trout, fruit, pork, and wine. Regionally, Chile exports an array of fruits. In winter months, Chile exports to the US supermarkets, since it lies on the other side of the equator. Currently, Ecuador exports bananas, cut flower, coffee, and tea to Russia. The primary export destinations for agricultural output from Ecuador are to the US and EU. However, it can augment exports generally to Russia in the agriculture and raw materials market. See the Russia Today article (CLICK HERE). When the Russians face tough going, they hit the BRICS road for Brazil and its ample suppliers as neighbors. Food can indeed become a zero-sum game. What Europe loses, South American farmers will gain. Watch BRICS be fortified.
◄$$$ MEXICO IS READY TO INCREASE A WIDE VARIETY OF FOOD DELIVERIES TO RUSSIA... A BATTLE IS SHAPING UP WITH THE EUROPEAN COMMISSION, WHICH HAS NO JURISDICTION OR LEVERAGE OVER STRUGGLING LATIN AMERICAN NATIONS. $$$
Mexico is prepared to increase deliveries of foodstuffs to Russia if the opportunity presents itself, promised Mexican Ambassador to Russia. Ruben Beltran has offered aid from the Latino nation, which will eagerly fill the food void. The ambassador boasted that Mexico is one of the world's leaders in the export of meat, fruits, and vegetables, adding that the nation is also prepared to export fish, tomatoes, avocados, and mangos. Media reports suggest that the European Union planned to convince Brazil, Chile, and other Latin American states not to export food products to Russia. The pressure has begun. The potential for defiance is huge. The European Union oddly expects these countries not to take advantage of the embargo on European products. The Latino nations are eager to add to exports and to improve their trade ledger. See the RIA Novosti article (CLICK HERE). The US southern border ally recognizes which way the wind is blowing in economic affairs. They can win huge points with Russia, which has recently begun important cooperative energy exploration work with the national PEMEX oil firm. This is a sharp kick in the testicalia to the misguided aggressive USGovt ship of fools.
◄$$$ EU SANCTIONS ON RUSSIAN FINANCE COULD CRIPPLE LONDON... RUSSIAN SANCTIONS ARE SET TO BACKFIRE BADLY... WHILE LONDON MIGHT LOSE SOME BOND BUSINESS TO SINGAPORE AND HONG KONG, BRITAIN MIGHT ANNOUNCE A MAJOR DEPARTURE FROM THE EUROPEAN UNION ITSELF... A REFERENDUM SET FOR 2017 MIGHT BE PUSHED FORWARD. $$$
The EU plans to widen economic sanctions against Russia should in effect slam London and its vast financial district. The City is not in synch with the EU in past months. If the EU wishes to make the rules like overlords that apply far and wide, expect political damage to be broad. Also expect dissension in time. London would be hit the hardest if tougher restrictions are slapped on the big Russian state banks. If imposed widely, the EU sanctions would apply to all Russian banks that are more than 50% state owned. Consider that Sberbank and VTB are the country's two largest lenders, both listed on the London Stock Exchange with offices in the area. Between 2004 and 2008, these two Russian banks raised $16.4 billion in capital floats. A ban would cost London hundreds of millions in British Pounds from earned fees. The EU-led ripples will extend across the English Channel and in the heart of the Western world's financial center, the City of London.
Here is where further conflict arises. France and Germany talk tougher on the political stage, but they are not aligned with financial impact as consequence. But London is. However, bear in mind that England is operator side by side with its Fascist partner in the United States, which directs warmonger traffic and terrorism from their Langley and MI basement offices. London lists more than 50 companies on its $3.6 billion Stock Exchange with active operations in Russia. Many major and mid-sized Russian companies traditionally choose London for their initial public offerings, and close on debt offering from London-based banks. Experts anticipate a significant hit to London, but given is massive size, it would not be a killer blow. The new proposed sanctions also include a ban on sensitive technologies such as weapons and energy, which Germany, France, and Italy are closer involved with. The defiance so far exhibited on weapons sales is remarkable to observe. All that aside, Britain has the most intimate financial relationship with Moscow with much at risk in stock, bond, and credit fees.
The degree of international cooperation is unclear. If other countries join in on shutting off capital markets, then deep damage could come. The London loss of EUR 7.5 billion in bond sales might be the gain for Singapore and Hong Kong. The big Russian players have been busy setting up offices in the East. The giant energy firm Gazprom has already arranged for a Singapore stock listing in June. The Russian Ambassador to Britain, Alexander Yakovenko, expected the sanctions to have a contagion effect on London and to the world economy. He actually anticipates an end game to the endless prolonged global financial crisis. He refers to a climax final stage series of events. The strange twist lies in the fact that the United Kingdom has been in a precarious position, on the brink of making a very public exit from the European Union. They objected to Jean-Claude Juncker being appointed President at the European Commission, much to UK Prime Minister David Cameron's annoyance. The UK has threatened to leave the EU, and will hold a referendum on the matter in 2017, maybe earlier. See the RT Business article (CLICK HERE).
## CORPORATE RESISTANCE TOWARD SANCTIONS
◄$$$ THE STALLED GAZPROM ANTITRUST CASE IN BRUSSELS MIGHT SUGGEST UNEASE FOR ENERGY SANCTIONS... APPETITE TO ATTACK THE ENERGY SECTOR OF THE RUSSIAN BEHEMOTH IS MISSING, AS WINTER APPROACHES. $$$
The macro sign of European waivering at a high level is visible. Even as Russia and the West keep raising the stakes in their economic sanctions battle, the one commodity that could matter most (Russian natural gas) seems still to be off limits for attack. Long before Ukraine erupted as a celebrated fabricated cause and geopolitical crisis, the European Union was busy aggressively pressing an antitrust case against Gazprom, the Russian state controlled gas giant. The notable intensity is gone. If Europe has grounds to punish Moscow economically, the Gazprom antitrust case might seem to be a prime opportunity. But they are backing off. Gazprom is suspected of inflating prices and imposing unfair restrictions on gas distribution within Europe, which is heavily reliant on Russian natural gas. As recently as last winter, Russia and the European Union's competition commissioner, Joaquin Almunia, seemed on the verge of settling. But the case appears to be languishing and adrift without support or motivation. The case might simply fade away, the message unmistakable on lost nerve. To drop the case would be very disappointing to small European Union countries like Lithuania. The Baltic nation is among six European Union member states in total Russian dependence. The other European Union countries almost entirely dependent on Russia for their natural gas are Latvia, Slovakia, Bulgaria, Estonia, and Finland. Among these nations, only Finland has a voice that is heard.
The lost momentum of the antitrust case seems to underscore how sanctions could be more about symbolic actions than imposing serious economic pain on either side, except for the serious ratchet upward in agriculture ban in retaliation. A failure to press the Gazprom case would mean that the commission is weak and not in a position to defend its own rules. Or else the true power behind the scenes lies in the Gazprom offices and board room. At issue is pricing policy that linked natural gas to crude oil, rather than basing prices on global natural gas market rates.
Lithuania actually seeks compensation from Gazprom for past alleged pricing abuses at a separate arbitration proceeding in Stockholm. Last December, the Gazprom representative was proposing concessions aimed at ending the antitrust investigation. An angry Kremlin wanted to settle the case at the Brussels hive. The case has dragged on, but might fade away into the mist, forgotten. During escalated tensions, even now it is far from certain that Gazprom will face formal antitrust charges that could force the company to revise long-term contract pricing. The Jackass like others, suspects the EU Commission does not wish to cause a severe retaliation by the Kremlin in widespread natgas cutoff of their critical supply as winter approaches. The entire sanctions war is as bizarre as illogical. Russian gas made up 39% of total European Union imports last year, up from 30 percent in 2010. About half those supplies are delivered through Ukraine, but their portion in supply transit is falling. See the Implode Explode article (CLICK HERE).
◄$$$ EXXON MOBIL IGNORED THE RUSSIAN SANCTIONS WITH THE ARCTIC ENERGY PROJECT, ALONGSIDE ITS NEW BIG PARTNER ROSNEFT... SANCTIONS LACK THE BITE FOR BIG PLAYERS. $$$
Exxon Mobil Corp began drill operations on a $700 million well in the Arctic Ocean last week, an example of extreme defiance and double standards at work. The second largest oil firm in the industry, the largest US energy company, is undeterred and will ignore the USGovt. Consider the action a grand F.U. by the Rockefeller crew to the Obama Admin. They are setting an example to follow. As relations with Russia continue to deteriorate, and the Cold War is revived, the energy giant proceeds gleefully without a care of law enforcement that applies to European banks. Like mindless robots, the European Union imposed a third round of sanctions in early August, restricting the export of equipment used for offshore oil production. Exxon needs none, well supplied with huge inventory. Exxon actually relies upon a clause whereby the contract to hire the big rigs was signed before the sanctioned were put on the books. Such waivers will not be available except to powerful corporations.
Developing the Arctic is vital for Russia, for which energy provides half the nation's revenue. The Eastern superpower strives to maintain oil production near a post-Soviet high of more than 10 million barrels per day. For Exxon, where output has steadily fallen to reach a five-year low in 2Q2014, the discovery would offer a vital new source of crude. The engineers call it an interesting and challenging well. Drilling operations have begun at the Universitetskaya prospect, heralded the Kremlin. They surely enjoyed making the announcement, given the close alliance that the Rockefeller firm has enjoyed in directing White House traffic. The irony is thick as a Cape Cod fog in August. Vladimir Putin has close friendly relations with Exxon CEO Rex Tillerson and Exxon Mobil Russia head Glenn Waller. Expect absolutely no retroactive loopholes to apply to other US corporations outside the elite cabal of banks and energy firms.
The Universitetskaya site is the first of as many as 40 offshore wells Rosneft plans by 2018 to test the potential of the unexplored Arctic region. The initial target for drilling is roughly the size of the city of Moscow, which is believed to contain as many as 9 billion barrels of oil, from Rosneft estimates. The hypocrisy is noted by John Lough, a London-based analyst at Chatham House. He said, "It is an anomaly in the current situation. Just how long major Western companies, such as Exxon, can carry on doing this, is anybody's guess. They are light sanctions at the moment in terms of the energy industry." Exxon is not alone, joined by British Petroleum which is attached at Rosneft's hip with a 20% stake. In the future, they might be bought out. Rosneft expects the reserves to be assessed in the next three months, drilling not to be inhibited by icebergs. Watch for snags in progress from legal entanglements tied to sanctions. See the Bloomberg article (CLICK HERE).
Russian state oil company Rosneft and US oil & gas giant Exxon Mobil have gone ahead with the project in followup to the Kara Winter 2014 Ice Project. They have looked past the conflict in US-Russia relations over Ukraine and have sidestepped the latest round of Western sanctions on Russia. Drilling has officially begun in the $700 million oil well in the East Prinovozemelskiy field in the Kara Sea. President Putin praised the project participants. He said, "Today commercial success is determined by effective international cooperation. Businesses, including large companies, both Russian and foreign, are well aware of that. In spite of the difficult current political situation, pragmatism and common sense still have the upper hand, and that is very gratifying. Exxon Mobil is our old, reliable partner, and we greatly value our relationship." To be sure, the entire project is a grand F.U. by Rockefeller to Obama. See the BRICS Post article (CLICK HERE) and the Common Dreams article (CLICK HERE).
◄$$$ WESTERN COMPANIES ARE DETERMINED TO COOPERATE WITH RUSSIA DESPITE SANCTIONS... TREMENDOUS POLITICAL DAMAGE COMES FROM DEFECTIONS BY CORPORATE TITANS... AMAZINGLY, RUSSIA HAS A NEGLIGIBLE ROLE IN UKRAINE EXCEPT TO CLAIM ITS CRIMEAN NAVAL BASE. $$$
Russian President Vladimir Putin welcomes Western companies who are determined to work with sprawling bear of a nation. He stated, "Today, commercial success is measured by the effective international cooperation. The business community, in particular major Russian and foreign companies, understands this very well. Despite the difficulties of the current political situation, pragmatism and common sense still prevail, and we are happy about that. In our opinion, this is a truly responsible business approach, and only such an approach can be productive. We definitely welcome this position, and in turn, we are open for widening cooperation with our partners." His statement came during a video conference from the floating rig in the Kara Sea (pictured above), the site of the joint project between Russia's Rosneft and US Exxon Mobil. The two firms are due to commence drilling in the Kara Sea off Russia's northern coast in mid-August. The Man from Vlad has been a steady force during the conjured conflict, replete with obscene propaganda, deep lies, genocide, and more. Putin has repeatedly called the Western sanctions counter-productive and stressed that Russia was never involved in the Ukraine conflict. The Kremlin's true role might come out in the Western press, maybe not. See the RIA Novosti article (CLICK HERE).
Truth matters little when the war drums beat in the global warmongering capital, WashingtonDC, dominated by Langley directives and the defense lobby. Little known is that the current Kiev Regime minister posts, including the central bank head, are filled by Israeli Mossad professionals from the Fascist camp. The Langley and Soros mercenaries have controlled the entire conflict while managing the Western press as hostage. Notice how slowly, Putin has successfully escaped the US trap. The US has instead trapped itself as it loses its allies, one by one. The EU high command is under fire. More and more companies will defy the USGovt sanctions via loopholes. First Exxon and next Boeing, then more major firms will act in defiance. Central Europe will be the great catalyst, namely Germany, for lost US support. It is already fait accompli, the decision having been made to depart the European Union.
◄$$$ PENTAGON REFUSES TO CANCEL A LARGE HELICOPTER CONTRACT WITH RUSSIA, WHICH HAS SPARKED CONTROVERSY IN THE ARMS LOBBY... THE AIRSHIPS ARE PREFERRED FOR THE ENVIRONMENTALLY HOSTILE AFGHAN REGION, BUT ALSO REQUIRE LESS MAINTENANCE... NOTE YET ANOTHER NAIL IN THE SANCTIONS COFFIN, AS WELL AS UNDERMINED OBAMA CREDIBILITY. $$$
As if the rocket supply contract with Russia was not enough to raise the hair on Congressional necks, the Afghan helicopter deal from the Russian arms exporter should. Criticism has come to Pentagon officials for maintaining contracts with Rosoboronexport, which supplies rugged Mi-17 helicopters to the US-backed Afghan Army. The conflict in Afghanistan does not involve Russia. The Pentagon argues that any contract cancellation would be given a catastrophic blow to the Afghan forces to carry out operations. They cite anti-terrorism like drones in uniform, better translated to mean protection of heroin fields against Taliban renegades not cooperating with the USArmy. They also cite putting young US soldiers in harm's way, always a good motive. Even that hypocrisy is exposed to forced repeated tours by weary soldiers. Weapons experts claim the Afghans prefer the Russian helicopters since they are a more forgiving in austere environments. They are better suited for Afghanistan's rugged terrain and thin air altitude. Moreover they require less maintenance for Afghans to keep them running than rival US made systems. The Pentagon has already purchased 88 additional Mi-17 helicopters for its Afghan Air Force shown below. See the RIA Novosti article (CLICK HERE).
◄$$$ DUTCH COMPANIES WANT TO COOPERATE WITH RUSSIA IN THE TERRITORY OF CRIMEA... THE CORPORATE DEFIANCE IS BROAD AND VERY MUCH INTERNATIONAL. $$$
Dutch companies have expressed interest in Russian cooperation concerning the territory of Crimea. The projects include the energy sector, reconstruction of port facilities, agriculture, and waste recycling. The news was offered by Alexander Cherevko, the Russian Trade Representative in the Netherlands. "Several Dutch companies that operate in Crimea would like to participate in projects aimed at the region's socio-economic development. As far as I know, Dutch companies are getting ready for a business mission to Crimea. The Dutch are highly active and are determined to work with Russian companies," Cherevko stated. See the ITAR-TASS article (CLICK HERE).
It is indeed interesting that the Dutch wish to do more business with Russia, sanctions notwithstanding. It seems the politicians are in the US grip, but business corner offices have a way to trump politics. Bigtime defiance is coming from the Germans, Dutch, and French. These three nations will flip eastward and work closely with the Eurasian Trade Zone, led by Russia & China. Notice most defiance comes from the corporate sector, which is usually the strong enclave central core of the Fascist Business Model. It signals the fascists are losing their support and native core. One must view the defiance as coming from the heart. The Fascist Business Model is losing ground in sanctions from the highest level of corporate power, a truly damaging signal for the US-UK-EU fascist leadership. It would be like a gambling regime losing Las Vegas casino support. No analysts seem aware of the defection from the corporate core of the fascist partnership with the state.
◄$$$ GERMANY SCRAPPED A TRAINING CAMP DEAL WITH RUSSIA... CONSEQUENCES FROM THE RUSSIAN SANCTIONS HAVE HIT, BUT NOT FOR A WEAPONS DEAL. $$$
Germany has decided to canceled a major contract to provide a fully equipped training camp to Russian forces. The training camp project will not be authorized. The Sueddeutsche Zeitung said it had seen a written document including the decision to scrap the EUR 100 million contract. Russia naturally accused Berlin of acting under pressure from the United States. The German defense group Rheinmetall, the contractors for the military training camp, had stated in March that it would fulfill its contractual obligations to build the center. The site was to accommodate the training of 30,000 soldiers per year. The camp was to have been built in the Volga region, and was scheduled to open later this year. They can use the camp later, after Germany flips eastward and aligns with Russia more fully. See the Times of India article (CLICK HERE).
◄$$$ NON-POLITICAL RUSSIAN TOURISM FLOW TO EUROPE HAS DECLINED BY 15% TO 30% AFTER SANCTIONS... EGYPT AND THAILAND REMAIN POPULAR FOR RUSSIAN TRAVELERS. $$$
Many Russians have switched to domestic tourism, preferring to visit scenic Sochi on Russia's Black Sea coast, which offer the viewing of Olympic venues. The European destinations are no longer favored. Demand for tours to Europe have decreased significantly after the EU imposed sanctions on Russia. The demand in some countries could fall by 15% to 30% by the end of the season. No data is available for destinations like Turkey and Greece. However, outbound tourism will likely increase in some regions of Southern Europe which offer sunny climate. Official statistics indicate that in 1Q2014, the number of Russians travelling abroad has declined year on year by 4% to 3.2 million, according to Rostourism, the national tourism agency. For the second straight year, Egypt and Thailand ranked first and second among countries most popular with Russian tourists. The traveller count to Egypt decreased by 6% to 542,000 people, while the number of visitors to Thailand increased by 8% to 409,400 people. See the ITAR-TASS article (CLICK HERE). Tourism to Ukraine went to near zero.
◄$$$ THREAT OF $200 PER BARREL OIL IF RUSSIA SANCTIONS ESCALATE INTO A BROAD TRADE WAR WITH CUTOFF OF RUSSIAN ENERGY. $$$
If the standoff with Russia and the West reaches a point where the European Union cuts off trade with Russia, the oil prices could soar above $200 per barrel. It would spark a global economic crisis, claims Adam Slater, senior economist at Oxford Economics. Major economic downturns are associated with high energy prices. A grand shortage would result if Russian oil supply is cut off. It is the world's second largest oil exporter. Russia could lose 80% of its energy exports. OPEC producers would fill in the market gap, but their spare capacity is a fiction. The EU purchases 84% of Russian oil exports, and 76% of natural gas exports. About one quarter of European countries rely completely on Russia for gas or oil provision. The spillover effect would go far beyond Europe. The US-EU corner office clown show is putting the entire world at risk. Slater told the Guardian the following. "In such a scenario, world oil prices could soar above $200 per barrel and gas prices would also rise steeply. These would further damage Russia's economy. Russia's next moves remain uncertain. An escalation of the conflict is still a significant risk, which would have potentially negative global spillovers in particular via the impact on global energy markets." Sanctions against Russia have been driven by the US, but Europe has been more reluctant to follow suit. Their economy is fragile, and far more dependent upon Russia for energy. See the RT Business article (CLICK HERE).
## ANGRY GERMANY AIMS AT USDOLLAR
◄$$$ RUSSIAN SANCTIONS ARE CRUSHING GERMAN BUSINESS SUDDENLY... EFFECTS ARE NOTABLE WITH CARMAKERS LIKE VOLKWAGEN, AND RETAIL GIANT METRO... A 17% DECLINE IN EXPORTS TO RUSSIA IS FORECASTED, WHICH COULD RESULT IN A 0.6% GDP DECLINE TO THE GERMAN ECONOMY... THE POWERHOUSE NATION WILL NOT TOLERATE IT. $$$
The West boasts of putting financial screws on Russia, but the whiplash is quick and powerful. German companies are feeling the effect of interrupted commerce, a slowing Russian Economy, and weakening Ruble currency. The details are ugly. Russia is Europe's third largest trading partner. The Ukraine conflict that has expanded into trade war has seriously affecting German companies. In 2013, Germany exported EUR 36 billion worth of goods to Russia, an enormous amount, far greater than any other EU member nation. German sports retailer Adidas lowered financial targets for the next two years, citing conditions in Russia as cause. The company will hasten efforts to close stores in the Russian and CIS markets in 2014 and 2015, as well as to reduce inventory in the marketplace. CIS refers to some former Soviet Republics, the Commonwealth of Independent States.
A shrinking car market in Russia is dragging down demand for Renault, Peugeot Citroen, General Motors, and Ford Motors, which all produce cars locally in Germany. The carmaker Volkswagen is actually Europe's largest. VW reported an 8% decline in Russian sales in the first two quarters compared to last year. The rising Euro currency exchange rate has also hit the Germany carmakers generally. Sales in developing markets such as Brazil, China, and India have declined, as currency fluctuations turn buyers away from European brands. Apart from the Russian market, Volkswagen Group reported strong growth. The Russian market and nearby nations are dragging down VW. The impact has hit German-based giant retailer Metro. It has $2 billion invested in Russia, but sales in Eastern Europe fell hard by 14% between April and June. The firm Metro will delay taking its Russian subsidiary Cash & Carry public this year with an IPO stock sale. The Cologne Institute for Economic Research forecasts German exports to Russia could fall by at least 17% in 2014, compared to 2013. In a worst case scenario, if Russia and Germany completely cut bilateral trade, the German GDP could realize a 0.6% decline as impact, losing EUR 16.4 billion. Exports to Russia in the January to April period dropped by a robust 14 percent, a very significant hit. See the Russia Today article (CLICK HERE).
◄$$$ GERMANY PLANS TO SINK THE WESTERN BANKING SYSTEM, INSTEAD OF PERMITTING DEEP ECONOMIC CORE DAMAGE... THE GERMANS ARE WORKING BEHIND THE CURTAINS WITH RUSSIA & CHINA ON A RETURNED GOLD STANDARD, WHICH WILL TRIGGER PROFOUND AND CATASTROPHIC BANK SYSTEM LOSSES... THE CABAL WILL BE COMPELLED TO REPAIR THE BANKS VIA MORE AMPLIFIED MONETIZATION, IN A FINAL DEATH STROKE. $$$
The Jackass challenged The Voice directly on the course of Germany, as to which path it would take. He has several longstanding corporate executive clients, well trusted men who regularly update him on matters pertaining to Europe. He knows the German Economy well, and the national mindset. The posed question was whether Germany would permit deep economic damage with continued conformity to Russian sanctions, or whether Germany would depart from the US-EU Alliance and work with BRICS nations which would pull the rug from under the entire banking reserves based in USTreasury Bonds. The answer was quick. The answer was direct. The answer was that Germany would sink the US, London, and European big banks, in order to preserve its vast diverse powerful economy.
The Voice wrote, "The plan is soon to be triggered to work with Eastern superpowers on the Gold Standard. They will force heavy bank system losses, instead of enduring great economic core damage. Germany will protect its economy, as they always have done. [Recall Germany did not allow out-sourcing of industry to Asia in the last three decades.] There is not much more to destroy in Ukraine. However, they work hard at it to convert Ukraine into something like the Gaza Strip. The United States is totally clueless what is brewing in Western Europe, as a major concerted defection is in progress behind the scenes. The US is going to be totally isolated and then ignored." Germany will sink the banking system, choosing to preserve industry, economy, jobs, and tangible structure. Recall that Germany has always been extremely protective of its industry and source of wealth, while the United States has either forfeited industry or undermined it. The USFed and Bundesbank have been at odds since the 1980 decade, over American profligacy toward monetary creation. Inflation ruins capital, a basic fact.
The Jackass expects a colossal bank contagion to occur in the next several months or couple years. Time is not on the banker cabal side. They are covering the USGovt debt with monetization sources (relying upon QE by Weimar press). They are paying for USEconomic supply with worthless USTreasury Bonds (foreign savings undercut by QE hyper inflation). They are waging war using the USDollar global reserve currency to finance the war on several fronts (where victims are required to finance them using underlying USTBonds). The current path is not sustainable. As the QE delivers more unsterilized bond monetization into the US financial pool, the process renders deep damage to the USEconomy in a higher cost structure that slowly eradicates profit margins. Thus capital is retired, removed, liquidated, and killed. The entire QE monetary policy with Zero Percent Interest Rate Policy goes contrary to a capitalist system. The United States is no longer a capitalist system. The status quo with QE hyper monetary inflation cannot continue. Time is not on the banker cabal side, as structures are eroding fast.
When the bank damage finally arrives, the big banks will be damaged from smaller and intermediary banks failing. Contagion will be rapid. The West will be forced to build Bad Banks to stuff their worthless assets. Enter the Bad Bank concept. The unfortunate feature of the Bad Banks is that they will house almost the entire portfolio of the banks themselves. The subprime underwriting has been policy within bank practices, seen in lousy credit extension to home loans, to car loans, to student loans, and more. The pressure on central banks will be fierce to monetize their big banks, which will further aggravate the entire fiat paper FOREX currency system. The central banks at the USFed, Euro Central Bank, Bank of England, and Bank of Japan will engage in grand debauchery of their currencies in the USDollar, Euro, British Pound, and Japanese Yen. The reaction by the rest of the world, largely driven by the Emerging Markets which is the source of industry and savings, will be for amplified escape from the King Dollar Court. They will redouble their efforts to exit the USDollar sphere for both trade settlement and for banking reserves management.
In the enormous vacuum will be the crater left by the big Western banks. Their decline and failure will trigger derivative losses. The Jackass foresees the German departure (joined by Netherlands and France) to cause a derivative event. The big Western banks will require $3 to $5 trillion in first round of bailouts, plus another $20 trillion in derivative coverage. Later the estimated figures for derivative losses will be kept quiet, but it will leak out. It will be impossible to conceal the derivative loss coverage. Anticipate derivative losses of at least $100 to $200 trillion. The staggering historically unprecedented volumes will kill the major fiat currencies, rendering them toxic and useless. The West will default and have its assets liquidated, for wealth denominated in the fiat currencies listed above. The only surviving assets will be hard tangible assets led by precious metals, energy deposits, farmland, and property (like commercial buildings).
London Paul pitched in with an assenting opinion. He wrote, "It is good to see that Germany is taking a proactive and intelligent response to matters. I doubt the Western Banks will be able to bail out and monetize this time around. I suspect we will see derivative implosion too. The flight to hard assets will be spectacular. The ultimate ignominy for the Fascists in New York, London, and the Draghi Castle will be Germany sinking the Western banking system while Russia & China lights the torch on paper wealth. With a degree of confidence, 2014 will see the capitulation of these bastards." The USDollar is being torched by the USFed, by the USMilitary, and finally by its own allies. Blame for its complete burning will be given to Russia & China, nations which are trying to step aside.
◄$$$ GERMANY HAS SECRETLY HIT THE ACCELERATOR PEDAL TO JOIN THE BRICS ALLIANCE... THE KEY TRIGGERS HAVE BEEN PRESSURE TO SUPPRESS EVIDENCE ON THE UKRAINE MILITARY DOWNING THE MALAYSIAN AIRLINER MH-17, THEFT OF THE GERMAN OFFICIAL GOLD ACCOUNT, AND CONSTANT NSA ESPIONAGE... THREE STRIKES AND OUT, THE GERMANS ARE HASTENING THEIR FLIP EASTWARD.... GERMANY WILL PUT ITS WEIGHT BEHIND THE CONSTRUCTION OF A NEW GLOBAL FINANCIAL ARCHITECTURE, FOR WHICH GOLD WILL BE THE CORE. $$$
A new report prepared by the Kremlin has been permitted for public view. The Ministry Of Foreign Affairs (MoFA) disclosed that the Germany Federal Foreign Office (FFO) contacted Moscow in late July to formally request an accelerated membership course for their joining the BRICS economic community. They plan to leave the European Union (EU), a move certain to cause tremendous geopolitical disruption. The BRICS (Brazil, Russia, India, China, South Africa) account for almost three billion people and produce a GDP worth US$16.0 trillion, equal to almost one fifth of the world economy. More importantly, they control an estimated US$4.0 trillion in combined foreign reserves. The Emerging Market nations are responsible for well over half of global savings. Opposition to the insolvent, corrupt, and debauched USDollar Regime is centered upon the BRICS movement. These nations, along with numerous and growing number of Associate nations, are pursuing an alternative system that conducts trade outside the USDollar. They will save outside the USTBond complex as well. Their success would spell doom for the USDollar. The broken financial system cannot accommodate the world's rising titans.
Motivated German action centers upon three major violations of integrity on the USGovt part. The Germans have had enough of corruption, hypocrisy, and warmongering.
1. The Obama Admin ordered the entire European Union to ignore hard evidence provided by Russia relating to the Malaysian Airlines 17 flight shot down over Ukraine. The data proved the event was a deliberate action ordered by Kiev officials with CIA involvement. German intelligence sources have confirmed independently their USGovt counterpart assessment (from CIA) that Russia had no involvement in the downing of the commercial aircraft. The German experts have actually used the doctored YouTube videos and online Tweets to show they were heavily manipulated and instead, prove the Ukraine Military forces were responsible for the action.
2. The German Govt back in 2011 knew of the Obama Admin plot to force a showdown with Russia. In reaction, the Bundesbank (central bank) demanded a full repatriation of Germany's entire US$141 billion gold reserve from the US Federal Reserve where it was stored. Concurrently, the German Govt initiated plans quietly to join the BRICS nations and their economic bloc. The anger has been building in Berlin for over three years concerning the gold account betrayal, lies told, and delays handed. The New York Fed had betrayed the German trust to safeguard their gold. Furthermore, and equally risk filled, the USGovt plans a fresh new legal attack on the Bundesbank similar to their attack of BNP Paribas, the largest French bank.
3. The German Govt is intensely angry about the USGovt NSA and CIA spy ring operating on top German officials. The harsh sentiment boiled over, causing Germany to order the CIA station chief in Berlin to leave the country. So alarmed are the German officials that they have new protocols, putting aside their smartphones and portable computers during high level meetings. (These devices can be used to monitor remotely even if turned off, but the battery still connected.) They resort to simple typewriters more as well. The nation feels under attack by the United States, an ally turned fascist.
The conclusion is that the Germans are motivated to work on alternative roads to the USDollar, as are the French. The outrage over the BNP Paribas fine and heavy pressures over the Mistral warship deal have put France on notice. Their central bank head Noyer acknowledged that the USDollar cannot stand as global reserve any longer. Furthermore, Brazil President Dilma Rousseff stated last month at the start of the seventh summit of the BRICS nations that the five big emerging economies are moving toward a new global architecture. Given the Russian sanction effect on the German Economy, such a financial structure is urgently needed. See the What Does It Mean article (CLICK HERE) but bear in mind that Faal has a spotty record for some past dubious stories. One contact with German and Austrian ties verified the report. In addition, the Voice wrote, "Sorcha Faal is always good for entertaining reading, since she often is living a bit in fantasy territory. She is not stupid, just a bit deranged. There is some truth to what she writes about what goes on between Berlin and Moscow." On the website, Implode-Explode editor Aaron Krowne commented, "They have a sometimes hysterical approach but actually their journalism is pretty solid these days."
◄$$$ THE GERMAN ECONOMY BACKBONE HAS GONE INTO REVERSE FROM LOST RUSSIA SALES... THE CRITICAL MITTELSTAND CANNOT REDIRECT OUTPUT TO OTHER PARTS OF THE WORLD... GERMANY WILL PULL ALL OF EUROZONE INTO RECESSION... FRANCE WILL PULL NOBODY OUT OF THE PIT, LEAST OF ALL THEMSELVES (MIRED IN SOCIALISM)... MINOR NATIONS WILL BUILD HUGE CHUNKS OF ADDITIONAL DEBT... BEST TO DISMISS THE EU COMMISSIONERS FOR RECOVERY AND AVOIDED WAR. $$$
Industrial suppliers for a wide variety of machinery products to Russia are experiencing a sudden cutoff. The contract bids are being lost as well. Orders are going unfilled, contracts unsigned. The EU commission has created an environment for rampant resentment and political backfire. The German Mittelstand, which accounts for 52% of total German economic output, contains thousands of small-sized and medium-sized companies that form the backbone of Europe's largest economy. It is being pinched. The Mittelstand tends to promote for export unique products, often customized for regional sales. They are not easily diverted to other customers. Other vendors like Bayerische Motoren Werke and Siemens can easily shift destinations, since the products tend not to be customized. Big damage comes to the region.
In some cases, the customers are cut off from financing, even basic letters of credit. Finance terms are tied to climate. German business sentiment fell for a third straight month in July to the lowest since October, according to the IFO Institute. Sanctions are escalating. The EU sanctions announced in July restrict the export to Russia of equipment to modernize the oil industry and forbid the sale of machinery, electronics, and other civilian products with potential military uses. New arms contracts with Russia are also not permitted. Russia responded with import bans on a wide array of foodstuffs from multiple sources. Germany is Russia's biggest trading partner in Europe. The health of thousands of smaller companies is critical to Europe's biggest economy, and therefore to Europe as a whole.
The horrendous climate harmed German industry in June, when production fell 0.5% from the previous year after minor adjustments. The analysts and officials were braced for release of GDP data set to come out. It showed on preliminary basis a 0.2% decline for Germany in Q2, a sudden powerful reversal. The previous Q1 was revised to show a 0.7% growth. The German Economy Minister and Vice Chancellor Sigmar Gabriel claimed an analysis is underway, to be used for potential relief aid to companies hurt by sanctions and which are not covered by existing export guarantee legislation. Ironically the lower Russian Ruble is causing some decisions to favor Russian products, the Ruble currency manipulated by London and Wall Street. On the one side is higher imported prices to Russia, but on the other side is cheaper exports in the competition. See the Bloomberg article (CLICK HERE)
Germany's factory orders from the rest of the EuroZone dropped by 10.4% in June, a fall not seen since the intensity of the 2008 Lehman crisis. Factories are an important subset of overall industry. The sliding German output bodes poorly for the EuroZone generally. While the EU Economy is advertised as scratching out a Q2 growth of 0.1% (sequential, not annualized), the deception might lie in the inflation adjustment. Expect a big downward revision. The final Q1 figure was 0.2% growth, with the same caveat. Usually in the US and EU, inflation is falsely labeled as growth. The main concern is that with Germany on the decline, including a steep drop in economic sentiment reported, the nation will drag down Europe. Germany's ZEW index of investor confidence plunged from 27.1 to 8.6 in July, the sharpest fall since June 2012. Germany accounts for more than one fourth of the overall EuroZone Economy. It has been propping up the rest of the continent for the last few years. The usual analyst deception has come, calling Q2 an exception when in reality it is the beginning of a powerful decline. They deny the onset of recession, to be easily proved wrong. Their paychecks never depend on factual integrity or forecast accuracy. The morons at central banks have been citing expectations again, and ignoring realities. They are indeed tiresome, and worthy of dismissal. The winter weather 8 to 10 months ago is no longer a factor, except to deceptive data merchants.
The dispute between the West and Russia is fabricated by WashingtonDC and Brussels amidst much propaganda. It will ratchet upward as all conflicts do, in the absense of truth and cooperation. The criminal elite want war for over-arching fascist political motive. Despite Russia's share of the global economy being only a small 3%, it is one of Germany's ten largest trading partners. Nearly 300,000 German jobs depend on exports to Russia. Analysts at French bank Natixis estimate that a 30% drop in exports to Russia this year would remove a modest 0.3% from Germany's economic growth. Most analysts do not factor in negative momentum and harmful trickle down, from feedback loops and supply chains. Italy has fallen back into a notable recession, and France appears moribund, caught in the socialist stupidity web. France is Europe's second largest economy. Expect all minor economies tied to PIGS to enter powerful recessions and build up debt in huge chunks. Refer to Italy and Portgual. See the Boston Globe article (CLICK HERE) and the Australian article (CLICK HERE) and the UK Telegraph article (CLICK HERE). To repair the economic problem, fire the entire unelected EU Commission of fascist meddlers.
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