UKRAINE CRISIS REPORT
WEST-LED COUP D'ETAT
THREAT OF EASTERN BACKLASH

* Intro Background Brief
* Ukraine Coup as Fiasco
* Extreme Ukraine Backlash Threat
* Ukraine Object of Plunder
* Weakness in Coalition toward Ukraine
* Ukraine Energy Angle


HAT TRICK LETTER
Issue #120
Jim Willie CB, 
“the Golden Jackass”
16 March 2014

Editor Note: This month, a broad focus is given to Ukraine since it is the cemetery to the USDollar and the birthplace for the Eurasian Trade Zone. Its coverage will be presented as a special crisis report. Both Ukraine and Turkey are extremely important swing states in the Global Paradigm Shift that refuses any longer for people to ignore.

QUOTES ON UKRAINE

"In 1954, it took only 15 minutes for Nikita Krushchev (he of the banging shoe at the UN floor) to give Crimea as a free gift to Ukraine, then part of the Soviet Union. In Russia, Crimea is perceived as Russian. Nothing will change that fact." ~ Pepe Escobar

"For Russia, the nation Ukraine is home turf, but for the Western Boyz it is a mine field." ~ The Voice

"Soros is under investigation by multiple authorities for serious crimes committed in financial transactions, primarily manipulating and rigging markets. The cabal members are like barracudas. They kill and eat indiscriminately. They are immoral and atheists of diverse backgrounds, many even Satanic. They are champion parasites. The public would be horrified to know what they truly are, what they do, and who they represent." ~ The Voice (commenting in response to claims that Soros is a key player in Ukraine violence)

"When the Russians demand Gold for oil payments, and the Chinese demand to pay in Yuan currency for oil shipments, the Petro-Dollar will be dead. The United States will soon find itself on the extreme defensive, isolated among the major industrialized nations and the emerging market nations both. The Americans and British will be recognized as the isolated scandalous hostile fascists. Russia and China have banded together to form the axis of a Eurasian Trade Zone, which will be born from the Ukraine situation blowback. The US will be left outside looking in, jerking off with the idle hand, as stern consequence for half a century of criminal abuse." ~ Jackass

## INTRO BACKGROUND BRIEF

◄$$$ THE BALTIC NATIONS TURN INTO FOCUS AS PUTIN IDENTIFIES THE TRAINING GROUND LOCATION IN LITHUANIA FOR THE UKRAINE REVOLT... EXPECT SOME HARSH REACTION. $$$

Putin has set his sights on Lithuania and Poland. The Russian President accused the two nations on March 4th of directly providing training facilities and free movement for the extremists who ousted Kremlin-backed Ukrainian President Viktor Yanukovych. Expect retribution. He considers the action an unconstitutional coup. Russian state television aired footage of a Lithuanian farm where it claims the rebels stayed. What they do not mention is the likely funding and direction by the CIA and Saudis, the two states sponsoring terrorism for global export (called freedom fighters). Soon the world will comprehend that Al-Qaeda is a high level joint US-Saudi asset used in global terrorism. Maybe Putin will make the disclosure, with the benefit of Snowden NSA files. In return, the Lithuanian officials claim that Russian Gazprom, the sole gas supplier in the Baltic states, charges the country at least 25% more than other consumers in Europe. Formally Lithuania has filed lawsuits against Gazprom for more than 4 billion Litai (=US$1.6 bn), the amount the government says it overpaid. See the Bloomberg article (CLICK HERE).

No sooner than huge gas fields are discovered in Ukraine, that the US infiltrates with their Big Oil titans and Blackwater thugs to stir up violence, to kill from rooftops, to pilfer funds, to kill for purpose. To enter reality, best to replace the word Freedom with the more appropriate reflection of reality, Fascism. See the Russia Today article that includes some Blackwater footage of the mercenaries on the ground in Ukraine (CLICK HERE).

◄$$$ THE GERMAN POLITICIAN WILLY WIMMER CLAIMS A COUP D'ETAT HAS OCCURRED IN THE UKRAINE... THE OBJECTIVE IS TO SPLIT EUROPE ONE MORE TIME... THE WEST IS SCARED WITLESS OF THE EURASIAN TRADE ZONE FORMING. $$$

Wimmer is a former deputy of the federal German Parliament. He belongs to a group of German politicians with solid integrity. Financial journalist Lars Schall talked with the former Parliamentary State Secretary to the Federal Minister of Defense in Germany. The topic was the crisis unfolding in the Ukraine. According to Wimmer, the intention of the United States and its allies as seen in the Ukraine is to split Europe one more time. If the grand prize of Europe unites with Russia & China, then the Anglo-American chessboard will be toppled. See the Lars Schall article (CLICK HERE).

◄$$$ THE UKRAINE NATURAL GAS FIELD DISCOVERIES HAVE NOT BEEN SMOOTH SAILING FOR THE WESTERN ENERGY GIANTS... CONTROVERSY OVER FRACKING HAS BEGUN, SINCE CONTAMINATION OF GROUNDWATER SYSTEMS IS KNOWN... ROMANIA HAS SECRETLY EXPANDED FRACKING AFTER THE PUNGESTI PROTEST AGAINST CHEVRON AND THE NATIONAL ENVIRONMENT ABUSE. $$$

This is not a complete report, but an overview. Chevron was given some setbacks in Romania and Bulgaria. Also many protests arose in Poland took place against fracking, as well as against the very presence of Chevron in their country. The protests have been increasingly organized, as the people discovered that Pungesti is not the sole site where hydraulic fracking is being done in their country. They can expect the groundwater pools to light on fire soon. The Romanian Govt appears to have been paid off, as they granted special drilling experiment zones to Chevron. The protest activists have been restricted in movement, which has attracted the EU Commission attention. Neighboring nation Bulgaria banned fracking practices in January 2012, the second European nation to do so. Therefore, the strategy became more aggressive and focused on the capture of Ukraine. One must recall that Halliburton has the global monopoly on fracking chemicals. Their destruction of the BP Deepwater Horizon was part of a complex scheme to eliminate offshore drilling in the Gulf of Mexico, in favor of land-based drilling, often with hydraulic fracking practiced. Halliburton owned the majority of US land-based drilling contracts at the time. The syndicate firm has extended its evil reach to Eastern Europe.

The gas fields are a central motive for the movement to seize Ukraine. The nation will be gutted, in full view of Eastern Europe. The process is well along, as per central bank gold, other government funds, energy deposit rights, farmland rights (including Monsanto seeds), rules and regulations that favor the multi-national corporations of the West. The vile solution appears to be to frack the Ukrainians. They are vulnerable. Their oligarchs can be bought. The gears have been in motion for over a full year. See the Examiner article (CLICK HERE). It is truly amazing how so-called Environmental and Global Warming advocates like the current Romanian minister Rovana Plumb (in center of controversy) permit natural gas fracking projects, since the groundwater systems are totally contaminated. Consider it part of the elite genocide programs.

◄$$$ FACTOIDS ON UKRAINE IN A QUICK PASS SUMMARY TOUR... CONSIDER THE PROJECT, THE CRIMINAL ELEMENT, THE ECONOMIC SIDE, THE FINANCIAL FRONT, THE SOLIDARY ELEMENT, AND THE EASTERN BACKLASH TO COME. $$$

First the overview of the project. The US Asst Secy of State Victoria Nuland reported the USGovt has spent $5 billion in trying to subvert Ukraine. Whether from a leak or a boast, unsure. Such information is not wise to disseminate, since it refutes the popular uprising theory of organic native type in Kiev. The Puppet Masters are busy at work. A shock will come. Big bank loans to the West must be paid, as austerity budgets put in place. The Ukraine Govt will be forced to cut pensions in half, as farmlands move under Western Agri-Corp hands. Think Monsanto. Maybe farmers in objection will have their fields burned, a shrill echo of the Stalin executions one century ago. The American Nazis have arrived. That hardly seems to be in service to the Ukraine people in a sweeping aside of nasty oligarchs, as the story is commonly told in pure propaganda Goebbels style. See the Zero Hedge video (CLICK HERE), on how the USGovt spent $5 billion to destabilize Ukraine. It is laid out in a taped confession by a US shill mouthpiece.

Next consider the devious terror and criminality, the mercenary element. Snipers on rooftops in Kiev killed both the police and the public demonstrators, hired by Langley, in particular the Blackstone hired mercenaries. The same gang often conducted target practice from USArmy helicopters in Iraq, shooting civilians, even with contest wagers. The US-based sniper element was verified by Estonian Embassy translators. They appear to be hired by the Maidan Regime, supplied by US and Langley. The USMilitary also seized documents raided by Ukraine radicals, perhaps a hidden NSA motive on data gathering, always a secondary motive. A Russian refinery was attacked under mysterious circumstances during the coup. Serbia is the training ground for exported CIA terrorism, executed in nations like Tunisia, Egypt, and Georgia. Spy infested Serbia is the incubator for terrorist action in Ukraine and certain Chinese provinces, run by the USGovt security agencies. The Islamic fundamentalist CIA operatives are working shoulder to shoulder with Serbian trainers. More evidence that Al-Qaeda operates out of Langley HQ, the base, the rolodex of terrorist for hire by the USGovt slush funds.

Next consider the economic aspects, and the critical energy factor. Of European natural gas needs, Russia supplies 25% to 30%. Of all Russian supplied natgas to Europe, a significant 66% passes through the Ukraine pipelines. The US and EU desperately want Ukraine not to become a vital piece to Eurasian Trade Zone. Instead of integrating Ukraine, they will rape and pillage it, the standard Fascist Nazi Modus Operandi. The will loot it of all available wealth and assets. The palladium price is at 11-month high. Big supply deficits are reported for this other precious metal. Russia is a major global supplier, at 44% of global supply, with South Africa at 40%, with Canada at 6%, and with USA at 5%. Russia is a big supplier of rare earth metals also, but Mongolia is biggest among rare earths, operating within the Chinese shadow. The Russian giant gas monopoly firm Gazprom is so important to Russia that it used to be an actual government ministry, which was once headed by the former president (and current prime minister) Dmitry Medvedev. The Russians are more open about their energy firms being in influence.

Next follow the money, as to details of pilferage. Ukraine has $23 billion in loans to big Western banks, including $6 billion just to Italian banks. The Swiss froze Ukrainian assets after the Yanukovych regime had moved $70 billion into off-shore accounts, in part official state funds and in part oligarch funds. The state coffers were almost totally looted in Kiev, again a standard Fascist Nazi MO. The Western Elite employ the same tactics every time. The masked gunmen with unmarked trucks conducted a state assisted central bank heist. They took (confiscated, stole, removed, secured) 33 tons of Ukraine central bank gold bullion. The gold wealth was spirited quickly to New York under the shroud of mystery and confusion, ostensibly for safe keeping.

Next consider the lack of solidarity among the Western nations, contrasted with the Eastern superpower solidified axis. A leaked UKGovt document indicated that the British would not support sanctions on Russia. The London bankers wish to preserve the important Russian oligarch off-shore haven. French contractors just shipped a unique aircraft carrier for Russian purchase, used to transport helicopters. The USGovt will again be isolated, just like in Syria, probably after several Kremlin phone calls. The winter might be over, but industry still requires significant natgas supply. China immediately spoke out in support of Russia. Then India came out with mild tepid support, in pursuit of restored calm. China harshly criticized the United States at a recent G-20 meeting in Australia, essentially calling the USEconomy a fraud. The age of US bullying without challenge has ended. China accused the United States of living off the printing press, boasting of a fake economy that features vacant prosperity. Threats to expel Russia from G-8 Meetings are absurd, since in reality the G-8 has become irrelevant. Instead, the G-20 will meet without the United States or UK present. More US isolation.

Next consider the powerful backlash to come from Russia, some obvious, some to arrive as surprise. More pressure will come, forcing the Russian hand. The Voice has revealed that Russia will require energy payments to be made in Gold bullion or in Ruble currency. In lockstep, The Voice revealed that China will demand Yuan payments for crude oil shipments. Either action would smash the USDollar as global currency reserve, by killing the Petro-Dollar defacto standard dead. Both actions will kill the Petro-Dollar and then bury it. The Kremlin financial advisor threatened with dumping USTreasurys on a wide scale. Russia will abandon the USDollar if the USGovt proceeds with sanctions, which they call an unreliable currency. They really mean a rogue toxic currency used in global exploitation. Any attempt toward US isolation of Russia is an absurdity, as China has just announced solidarity with the Kremlin, and since the two nations are major creditors. They together hold 25% of USGovt debt. Russia is a major energy and mineral supplier to the entire world, the list impressive. China is a major exporter of finished products to the global economy. Isolation initiatives would backfire, and mean the United States would be deeply isolated. Russia formally requested the IMFund to proceed on reforms without US participation. Perhaps the IMF under Chinese leadership can declare the United States a rogue nation, and suggest sanctions against the source of bond fraud, global price inflation, and war aggression.

Lastly, consider the unthinkable. Desperation has set in. The United States is enduring its final free monetary air breaths, as the imminent prospect of either global currency reset or gold standard installation or global USDollar rejection is within view. Significant informed discussion of the West is taking place, focused on the US trying to provoke Russia into a first military strike. The West might wish to deliver a significant destructive counter-strike upon the Russian nation, which it considers to be the heir apparent in global leadership as a super-power. The West is weak, burdened by debt, ruined by socialism, its banks insolvent, its population gormless, with industry dispatched to China. The Western Elite criminals are eager to use the vast nuclear arsenal before the US, UK, and Western Europe collapse. Note the outstanding photo of Putin staring at Condoleeza Rice back in 2006, the mongoose eyeing the victim. He aint impressed by any Standord Univ political science scholar, who conceals the basic fascist nazi toy soldier warrior. It is no wonder Putin regards many US and British leaders to be mutants. As footnote, Ukraine is about the same size as Texas. It is slightly smaller than Texas in land mass with 603,000 square km versus 696,000 sqkm respectively.

## UKRAINE COUP AS FIASCO

◄$$$ WITNESS THE PHONY UKRAINE COUP, A GRAND TRAP SET... LIKE ABANDONING A FLOATING SHIPWRECK IN DISGUISE, ALLOWING PIRATES TO TAKE CONTROL AND BOARD THE VESSEL... THE WESTERN POWERS WALKED INTO THE TRAP EAGERLY... THE US-LED FORCES WORKED SIDE BY SIDE FOR THE NAZI TAKEOVER, WITH NO HIDDEN ELEMENT TO THE NAZI ASPECT... NEXT COMES LOOTING, THE ONE-SIDED WESTERN CONTRACTS, AND CONTAMINATION, FOLLOWED BY A COUNTER-COUP... THE EURASIAN TRADE ZONE IS TO BE BORN FROM THE CHAOS AND REVERSAL OF SENTIMENT. $$$

Behold the Ukraine coup d'etat, with all its nazi markings, devious deeds, ample looting, prevalent confusion, and trap set. The trap is not obvious, but the all too easy coup had many doors left open. Joel Skousen has had very accurate calls on major events in the past, but his view on the current Ukraine situation rings loud and shrill. He wrote, "The sudden collapse of the pro-Russian Ukrainian government this week is a too-good-to-be-true win for the protesters. No one in either the mainstream or alternative media is questioning the glaring contradictions about what happened during the supposed coup this past weekend. Who gave the orders for all of the riot police to melt away and leave their posts? The almost totally disarmed opposition easily took control of the city and just walked up to the presidential villa. Who gave the orders to the pro-Russian Party of Regions, who wielded the majority in Parliament, to suddenly switch their votes to join their political enemies in unanimously ousting President Yanukovych (who knowing what was coming, had already left)? It certainly was not the opposition. This all smacks of the same staged collapse of communism that supposedly toppled multiple Soviet controlled governments that still had fully functioning police, army, and security forces." See the two-part Alex Jones video interviews of Joel Skousen (CLICK HERE and HERE). Alex is moving away from crazy fantastic stories, and toward more responsible reporting.

Ben Fulford, despite his at times incredible accounts of events, provided a neat preface for the Ukraine situation. He said, "The democratically elected regime was ousted by violent foreign mercenaries actively espousing a Nazi ideology. The fact is that it is the corporate government of the United States no longer has many friends and is itself being hit hard by sanctions. The Russians, Chinese, and others have been selling US government bonds, banning the import of US agricultural goods, and threatening to dump all of their US dollar holdings." Sounds like a desperate condition for the United States leadership. Skousen warns that the risk lies in baiting Russia to make a first strike. He anticipates that the US-led West would respond by destroying Russia completely. However, it is not Russia at great risk of being iced, but rather the US & British & French alliance of being exposed for their criminal enterprise and toxic sovereign bonds. Together, Russian and China cannot be easily removed from their new eastern twin perch. The two nations come in a powerful double pack, and the Boyz know it.

The Voice offered the best perspective of all, which provides a glimpse to the actual intrigue. He believes the entire Ukraine scenario was a trap, which was set for the West. They walked straight into it. In the next several months, the Western Ukraine citizens will realize they have been looted, pilfered, deceived, robbed, and overwhelmed by fascist forces. All the Eastern European nations will observe the fast deterioration and impoverishment. Then these nations will join the Eurasian Trade Zone and back Russia & China. It will be an uneasy alliance under the Russian and Chinese fold, but it will not involve the pilferage and financial hegemony of the West. That is the trap. In time, the Eurasian Trade Zone will come together, but it first requires the full exposure of the fraudulent criminal Western oligarchs who run their nations like from a corporate office with full exploitation. To help along the process, if pushed too far, The Voice warned that the Kremlin will demand either Gold bullion or Russian Rubles for crude oil payments. Eventually they will demand such payments anyway. They will redouble their USTreasury Bond dumped sales just to attract the USGovt attention.

The early events are marred by ugly reports and accounts. So far $70 billion was effectively stolen from various Kiev banks, tucked away in Swiss banks. It will not come back. The 33 tons held in the Ukraine central bank was looted, sent to New York, arranged by the central banker planted by the US operation officials with direct connections to the Israeli security agency. It will not come back. Next comes the giant energy contracts and agricultural contracts, with the Seven Sisters in charge of the natural gas fields and Monsanto in charge of the agri business. Expect some low royalties for gas fields, a perceived backlash from the pillage. Then the contamination of groundwater systems from the destructive fracking, which has spawned numerous protests like in Romania and Bulgaria. The Voice expects a counter-coup to arrive in Ukraine, perhaps in less time than it took in Egypt. The Cairo team put in place by the WashingtonDC fascist uber-generals were removed in less than 18 months in a relatively easy counter-coup. Expect the Ukraine situation to fall apart more quickly, especially with some hidden pushes by Putin. The unusual element with the US-led operation is that it was directed by the CIA, not the Pentagon. The former controls the White House, with opposition at almost every step by the latter.

◄$$$ PUTIN HELD A TELECONFERENCE WITH MERKEL (GERMANY) AND CAMERON (ENGLAND) OVER EVENTS IN UKRAINE AND CRIMEA... THE CHINESE PRESIDENT XI CAUTIONED ON OTHER FACTORS AT RISK, WHILE THE INDIAN LEADERS CONSIDER THE RUSSIAN CLAIM TO CRIMEA AS LEGITIMATE... WITNESS ENERGY DIPLOMACY AS IT CONFRONTS GUNBOAT DIPLOMACY. $$$

On March 9th, the Russian President Vladimir Putin told German Chancellor Angela Merkel and British Prime Minister David Cameron in a teleconference that Crimea's decision to secede from Ukraine and join Russia was within the framework of the international law. The three leaders expressed differences of opinion regarding the events taking place. However, they declared their common interest in the reduction of tension and a return to normal as soon as possible. Such was the Kremlin version of the conversation. In a separate phone call, Chinese President Xi Jinping told German Chancellor Merkel that the current situation in Ukraine is very complicated and highly sensitive, and urged Western leaders to consider various factors in the handling of the crisis. Also, New Delhi pitched in with an opinion, making clear its view that Moscow has legitimate interests in Ukraine. Indian National Security Advisor Shivshankar Menon stated, "We are watching what is happening in Ukraine with concern. The broader issues [need] reconciling various interests involved. There are, after all, legitimate Russian and other interests involved. We hope those are discussed, negotiated, and there is a satisfactory resolution to them." See the BRICS Post article (CLICK HERE).

Downing Street (UKGovt) said in a joint statement, "They both agreed that the priority is to de-escalate the situation and to get Russia to engage in a contact group as swiftly as possible. They reiterated their view that the proposed referendum in Crimea would be illegal, and that any attempt by Russia to legitimize the result would result in further consequences. They also agreed that we must keep working to support the Ukraine government, including identifying how the international community can help to stabilize the economic situation." See the Guardian article (CLICK HERE).

So the UK and Germany wish to support the nazi coup d'etat executed by the USGovt security apparatus, complete with Blackwater service, followed by pillage of the central bank gold held in Kiev, and removal of valuable capital in their financial system. Not impressive by the two nations! Witness the new chessboard strategy of energy diplomacy, as opposed to gunboat diplomacy. Keep in mind that Germany depends upon Russia for 36% of its natural gas needs. France depends upon Russia for 23% of its ngas needs, and Italy depends upon Russia for 27% of its ngas needs. The dependence will be a point of leverage very soon, used as reminder.

◄$$$ THE UKRAINIAN PEOPLE WILL BEAR THE BRUNT OF AN IMF DEAL WITH TOUGH AUSTERITY... CONDITIONS FOR EUROPEAN AID ARE STRICT, LIKE A GREECE REDUX WITH A RUSSIAN VODKA CHASER... INVESTMENT IN UKRAINE WILL VANISH, SENDING THE DOMESTIC ECONOMY INTO A TAILSPIN, MADE WORSE BY VACANT FUNDS IN THEIR BANKS... UNCERTAINTY, FRAUD, CHAOS, AND POISON PILLS WILL HINDER FOREIGN INVESTMENT FOR A BANKRUPT NATION SOO TO BE GUTTED FURTHER. $$$

As part of a proposed $15 billion IMF deal on a bailout to save the Ukrainian Economy, once more the same poison pill is to be administered by the same witch doctors from the West. The results in the past have all been unsuccessful in Spain, in Italy, in Greece, in Ireland, yet they will apply the same arsenic to the national patient. The plain stunning destructive past track record indicates a perfectly clear motive to destroy and gut the nation. It convinces the Jackass of motive to destroy the global economy for benefit of banker totalitarianism. The IMF lenders will make sure Ukraine installs tough economic reforms which will render great harm ordinary people, global financial markets expert Patrick Young told Russia Today news. He also warned that unless economic and political stability is quickly restored, investors will be deterred from investing in Ukraine, thereby creating further problems. Expect their economic fracture and submersion to continue. On the budget side, the Ministry of Finance has prepared a plan to freeze budgets (sequestration), the shock to be initiated by the start of April. The proposal is to reduce capital costs, to eliminate prefential tax schemes, and to cut social benefits, such as cutting 50% of pension payments for working pensioners. The reforms are expected in three to five different objectives, not all at once. Working seniors will be severely affected. They cannot survive on US160 per month.

Ultimately, the $15 billion IMF loan will help to stabilize the Ukraine Economy, at least temporarily. The lack of a credible democratically elected government puts a cloud over all reform initiatives, and possibly opens the door to thefts of the loan itself. It is not clear that the IMFund can secure the actual loan, in the midst of a highly charged and confusing political situation. The reforms will serve as shock to a heavily subsidized society. The Maidan regime must behave in a very fiscally sound manner, which will not be sympathetic towards the typical pensioners or the citizens of Ukraine. Its citizens have grown accustomed (dependent) to receiving their natural gas from Russia and then the government giving them an enormous subsidy on top. The subsidy will be terminated under the IMF plans. That is precisely why Yanukovich rejected the terms of the IMF loan a few years ago. The government regularly runs a $6.5 billion deficit every year. On a per capita basis, the United States at 6.9 times the population would have a $45 billion deficit if equivalent. The USGovt in fact runs a $1000 billion annual deficit, which means Ukraine's deficit is extremely small, twenty times smaller than the US debt finance problem. But the debt run by the Eastern European nation must be financed, the consequence felt with its Hryvnia currency.

The IMF will demand austerity, to put their house in order. To operate in a sound and efficient manner will not appeal to the Ukie Oligarchs, nor to the ordinary people. Their real standard of living is going to collapse. The situation there is Greece redux, but in overdrive. The IMF has offered $15 billion initially, but continued drip feed of funds will require that terms be met on the austerity measures, better described as poison pills. During the critical political crisis in Ukraine, nobody wants to discuss maturely the economy, the finances, or the reforms, which is worrisome. At the same time, the G-7 nations are tossing biscuits and crumbs to prop the economy, like the USGovt offer to leave $1 billion on the table for usage.

Although the Ukraine Economy is not broadly wrecked, the challenge is huge uncertainty in every sector. If the EU Trade Zone is implemented, the shock will be nearly total. It would lead to a huge catastrophic problem for the east of the country, because the industrial heartlands would suddenly to find themselves unable to export their goods to Russia and to locations east of Russia. Such export destinations are currently popular. In the process, an investor strike is at work. Large foreign players are terrified about committing their money in projects in order to manage and to build new businesses, to create jobs, and to extend ties. The foreign direct investors are hesitant to continue or enter the country which is essentially bankrupt, being gutted, and in politically chaos. The situation is a cross between Greece and Rwanda from an investor standpoint. See the Russia Today article (CLICK HERE).

◄$$$ SEVERAL QUESTIONS ON UKRAINE GO WITHOUT ANSWERS... THE QUESTIONS EXPOSE THE USGOVT FOR ITS HYPOCRISY AND AGGRESSION... THE COUP D'ETAT WAS A JOINT EFFORT, WITH SUPPORT FROM DOMESTIC OLIGARCHS AND AMERICAN MERCENARIES. $$$

The US-led Western nations have displayed a callous position in recent years on all matters pertaining to Eastern Europe, probably because the US and its NATO accomplices are deeply engaged in devious deplorable vile activity. Whether in Ukraine or other neighboring nations to Russia, the West steadfastly refuses to answer questions that often touch on serious violations of international law. Ignoring Russian concerns is a Western habit adopted after the Soviet Union's collapse, part of the Cheney Full Spectrum Dominance (with criminal basis). Consider when NATO bombed Yugoslavia, without formal stated rationale. Consider recognition of Kosovo as an independent state, later set up as a massive heroin supply depot. Consider the USMilitary initiative to install an anti-missile shield over Eastern Europe, a clear treaty violation since it targeted Russia. Consider the steady flock of Western diplomats who entered Ukraine to lobby their crooked interests in a future Ukraine Govt, while accusing Russia of meddling in the nation's affairs. In Ukraine lies Russia's red line and Moscow no longer takes disrespect and silence for an answer. Many are the difficult questions which demonstrate a vile sinister under-current.

The opposition ousted Yanukovich even after he conceded to their demands. A pact was co-signed by foreign ministers of France, Germany, and Poland as agreement guarantors toward constitutional reform, a national unity government, early presidential election, and removal of Maidan fighter groups. Hours after it was signed, the Right Sector radicals swept the place clean amidst threats and murders with armed masked militants. They are nazis, who even brandish swastikas on armbands. Yanukovich had already given up his power, yet the violent overthrow was desired. The coup d'etat replace oligarchs linked to Yanukovich with other oligarchs linked to Western nations and to Israel, even direct rivals to Putin himself. The new self-appointed regime replaced the Yanukovich oligarchs with their own. The new governors of Donetsk and Dnepropetrovsk include old name figures at odds with Putin, well known criminals who pilfered funds with ornate scams. Now huge energy projects depend on the new and improved criminal oligarchs and their cooperation, likely with more pilferage. Kiev appears to be reinventing fiefdoms to nobility in exchange for servitude. For Putin, who openly excluded oligarchs from politics, the move is anathema. The contradictions remain.

Other disputes have arisen over repealed laws over language. Kiev had pledged to restore the status of the Russian spoken language, but now says the acting Ukrainian president will not sign such a bill into law. Several Constitutional Court judges were accused of violating their oath, then abruptly fired. The regime wishes to have them prosecuted. The judges branded this deed as an attack on the principle of separation of powers. In fact, Yanukovich was not procedurally impeached. He was dismissed by means of a voice vote, a show of hands, rather flimsy in procedure. The legality of his impeachment is open to challenges taken by several Ukrainian regions, even diplomatically by Russia. The Ukrainian Constitutional Court is the proper authority to rule on the issue, but it was disbanded in favor of the more sympathetic Supreme Court. The contradictions remain.

The coup in Kiev Ukraine installed a factious regime in an unconstitutional move, featuring a public revolution generated by the Western powers, organized by the Langley specialists. The people wanted change from an incredibly corrupt previous system, but they were given a fascist nazi regime with ties to Western oligarchs. No improvement will be given them. Putin regards the situation as far too polarized to become stable in any governmental function. He questioned the motives all along of whipping the nation into a frenzy. A stable Ukraine is essential for Russia for many reasons. Of course Russia wants ethnic Russians in Ukraine to be safe from potential violence and persecution. Other pragmatic considerations are relevant like the strong economic interdependence, like the gas pipelines that serve European economies, and especially like the Russian Naval Fleet in the Black Sea. A desperate Kiev mulls a divisive decision to privatize its gas pipelines in order to obtain income and to fill its empty coffers. Doing so would ignite a full flared conflict with the Kremlin, and total natgas cutoffs.

All of the questions posed by Putin and Moscow again go unanswered in the face of deeply criminal Western activity which will be revealed in time. Start with the looting of the Ukraine central bank gold to the New York Fed, the diversion of $70 billion in corporate funds to Switzerland, and the fast track on energy projects that destroy the groundwater systems. The contradictions remain. See the Russia Today article (CLICK HERE). For more details of the West's fiasco in Ukraine, the site of growing desperation and grand larceny, see the Chinese official view of the situation. They detect the West's shrinking financial situation, biting off more than it can chew. See the Xinhua article (CLICK HERE). For more information on the Israeli connection to the Ukrainian coup d'etat, the role played by Jewish Oligarchs, as well as details on the Blackwater involvement, see the Israel Shamir article (CLICK HERE).

◄$$$ PEPE ESCOBAR CASTIGATES THE UNITED STATES GOVT FOR ITS EXCEPTIONALISM, ITS HYPOCRISY, AND ITS EXPLOITATION... THE USGOVT IS CAUGHT ONCE MORE IN SUPPORT OF FASCIST NAZIS, THE LATEST IN A LONG STRING OF SUCH SUPPORT. $$$

The following are Escobar's thoughts, summarized with my edits. The United States once more demonstrates its exceptionalism, but in crime, deceit, and thefts. The USGovt backed a fascist regime again, yet the American public cannot seem to comprehend its track record on fascist regime support elsewhere or its own fascist leadership for decades. The 1997 Ukraine-Russia partition treaty specifically allows Russian troops in Crimea. So the USGovt objections are loaded with hypocrisy. The Western-led coup was largely directed by UNA-UNSO, a shady, ultra-right wing, crack para-military force tied closely to NATO using Ukraine as base, as exposed by William Engdahl. Again, neo-con means fascist nazi. The Svoboda Freedom party political council member Yury Noyevy admitted openly that using EU integration as a pretext was a means to break relations with Russia.

The servile Western corporate media glosses over the Nazi element. It always skips over how Svoboda and the Right Sector fascists follow in the steps of the infamous Galician fascist terrorist Stepan Bandera, a notorious asset at the avail of Western security agencies. Svoboda has managed to install six important players in the new Kiev regime. The Western press, while focusing upon the battle against kleptocracy, continues to overlook the kleptocrat oligarchs in the imporant provinces, despite the Maidan Regime working to displace the pro-Russian oligarchs. For a good perspective on Ukraine by Engdahl, see the Bewusst article (CLICK HERE). The Ukraine Govt is now headed by fascists and Neo-Nazis. See the Alternet article (CLICK HERE).

Follow the money to see removal of large tracts of cash from Kiev to Western Europe, and big loans to Western banks. The linchpin might be Germany, which opposes sanctions, and tolerates the sacrosanct American exceptionalist mantra (as Pepe describes). Russia is a plush market for German industry. The City of London does not want sanctions either, lusting for the Russian flow of funds from their politico oligarchs, even if a couple are found murdered in London. The West's threat to expel Russia from the Group of Eight is an utter loud joke, widely seen as such, except to the clownish ministers in WashingtonDC. The G-8, which excludes China and only invites them as observers, does not decide anything relevant anymore. The G-20 does, a main point by the Jackass for two years. The irony is that most of Ukraine's people do not want to be part of the European Union or NATO. Moreover, most Europeans do not want the Ukraine to be included within the EU. The Ukraine nation will be cast into the arms of the bloodsucking Intl Monetary Fund. Ukraine creeps toward federalization.

Escobar drives home a critical point on political subterfuge. Review the recent history of the Bush II Admin and the Obama Admin on forming alliances with the terrorist groups. Sooner or later the sleepy dopey apathetic gullible (Jackass descriptors, not from Pepe) American public will awaken to the face that the Neo-Con wings of the American Eagle that have occupied the White House are those of fascists, also known as Nazis. They characteristically display many flags at press conferences, defend the borders with hostility, and engage in aggressive wars in a purely predatory fashion. The USGovt actively supported the Swoboda Right Sector fascists who brandished swastikas openly, the group in power which toppled the Ukraine Govt. As Escobar points out, the United States is responsible for a long list of violations in the last 20 years. Yet the Obama mouthpiece talks of international law. Escobar wrote, "This is just the latest instance in the serial rape of International Law. The rap sheet is humongous, including; NATO bombing Serbia for 78 days in 1999 to allow Kosovo to secede; the 2003 US invasion and subsequent trillion-dollar occupation and civil war creation in Iraq; the NATO/ AFRICOM bombing of Libya in 2011 invoking R2P (Responsibility to Protect) as a cover to provoking regime change; US investment in the secession of oil wealthy South Sudan, so China has to deal with an extra geopolitical headache; and US investment in perennial civil war in Syria." Pepe left out the NATO Treaty violation with Russia, whereby the US placed numerous non-defensive nuclear missiles in Eastern European nations on the Russian border between 2002 and 2004, despite strident objections by Putin.

Escobar goes on to describe the pathetic Good Nazi. He wrote, "Everyone remembers the 'Good Taliban', with which the US could negotiate in Afghanistan. Then came the 'Good al-Qaeda', jihadis the US could support in Syria. Now come the 'Good Neo-Nazis', with which the West can do business in Kiev. Soon there will be 'the Good Jihadis supporting Neo-Nazis', who may be deployed to advance US/NATO and anti-Russian designs in Crimea and beyond. After all, Obama mentor Dr Zbigniew (The Grand Chessboard) Brzezinski is the godfather of good jihadis, fully weaponized to fight the former Soviet Union in Afghanistan. As facts on the ground go, Neo-Nazis are definitely back as [the painted] good guys. For the first time since the end of World War II, fascists and neo-nazis are at the helm of a European nation, although Ukraine most of all should be characterized as the key swing nation in Eurasia. Few in the West seem to have noticed it." Pepe concluded with a simple explanation of the extreme natural gas dependence by Western Europe on Russia supply. See the Pepe Escobar essays in Asia Times (CLICK HERE and HERE and HERE). The first of the articles is especially meaty, the third touches on the politics of nazis. Pepe Escobar is a breath of fresh air, loaded with a keen perspective, offering rich details. He easily brushes aside the pervasive propaganda.

## EXTREME UKRAINE BACKLASH THREAT

◄$$$ PUTIN ADVISOR THREATENED WITH DUMPING USTREASURYS, ABANDONING THE USDOLLAR IF THE USGOVT PROCEEDS WITH SANCTIONS... RUSSIA HOLDS AROUND $200 BILLION IN USTBONDS... THE USGOVT IS VULNERABLE ON THE FINANCIAL FRONT, STANDING ON SOGGY DEBT SOAKED GROUND. $$$

Russia did not waste any time wielding the USTreasury Bond sledge hammer. The game is on. Russian presidential advisor Sergei Glazyev spoke at the Putin detente press conference on March 4th. The red light of warning was flashed, addressing the glaring USGovt vulnerability in foreign held debt. The USTBond is soon to become the hotmoney discarded globally. The inept boisterous Secy State John Kerry threatened crippling sanctions against Russia, but no other major nation will likely join him, a grand risk with highly visible effect. "Unless immediate and concrete steps are taken by Russia to deescalate tensions, the effect on US-Russian relations and on Russia's international standing will be profound," Kerry stated. He mentioned economic sanctions, visa bans, and asset freezes as possible measures. He should look to see how debt soaked the ground is on which he stands. The serious repercussions would backfire quickly on the US, whose leaders are as incredibly inept and arrogant, as they are aggressive and corrupt.

In the event that Russian companies and certain individuals are targeted by sanctions as a result of events in Ukraine, the Russian authorities would dump USGovt bonds immediately and without hesitation. Glazyev expects the United States would be the first to suffer in the event of any sanctions parlay. He said, "The Americans are threatening Russia with sanctions and pulling the EU into a trade and economic war with Russia. Most of the sanctions against Russia will bring harm to the United States itself, because as far as trade relations with the United States go, we do not depend on them in any way. We hold a decent amount of Treasury Bonds, more than $200 billion. If the United States dares to freeze accounts of Russian businesses and citizens, we can no longer view America as a reliable partner. We will encourage everybody to dump US Treasury Bonds, get rid of Dollars as an unreliable currency and leave the US market." Regard the Kremlin as owning more than the officially reported sum of USTBonds.

Former deputy energy minister Vladimir Milov is a regular critic of the Putin team, a tolerated voice. He warned that increased tensions put continued downward pressure on the Ruble exchange rate, which was recently down to a record low of 36.5 against the USDollar. The Kremlin dismissed the Milov statement as a personal position from his academic post, no longer a formal counselor. The USGovt and Wall Street bankers who operate their corrupt houses must be concerned that if Putin orders its vast energy firms to accept only Russian Ruble currency as payment for oil & gas shipments, then the Ruble will rise quickly. The Wall Street game would be wrecked, causing great losses in a grand scheme backfire. This remains a Kremlin option. The swaggering US crew boast that a mere two months of USFed QE pump prime activity could eliminate the Russian holdings of USTBonds. So the Weimar solution can cover USGovt debt and foreign USTBond dumps as official policy, a main point warned by the Jackass for over two months. QE volume will rise, not decline.

The disconnect is with reality, since the entire world will soon reject the USDollar for its Weimar inflationary dependence and resulting wreckage heaped upon the global economy. The small retribution on Russia asset freezes and visa bans would result in accelerated USDollar rejection on the global stage. The local damage seems 100-fold worse than the foreign sanctions effect, evidence of desperation and ineptness. The US clown show continues as incredibly short-sighted. If China were to ally with Russia, and proceed to follow Russia in its reciprocal isolation of the United States, the risk to the USGovt financial condition would turn critical, acute, and deadly. The Chinese are busy expanding trade with Russia on non-USD settlement terms, using mostly the Yuan currency. The Chinese continue to sell bonds, a process begun in December, reported in the Hat Trick Letter. The $28 billion dump event by China of USTBonds was reported as the second largest amount of US debt securities in history. The American ruling body seems ignorant of its own vulnerability. Fascists always alienate allies and antagonize enemies, ignoring their own weakness. See the Zero Hedge article (CLICK HERE).

◄$$$ RUSSIA AND CHINA STAND IN AGREEMENT ON UKRAINE... TO EXPECT RUSSIA IN ISOLATION IS GRAND DELUSION, DUE TO ITS SIZE, ITS RESOURCES REQUIRED GLOBALLY, AND ITS BEST FRIEND CHINA... THE TWO OTHER SUPERPOWERS ARE UNITED ARM IN ARM. $$$

Russia cannot be isolated. Such a plan is total folly. It is too big, too vast, too loaded with natural resources. The Chinese Govt quickly came out with a public statement in solidarity with Russia on matters pertaining to the Ukraine crisis. The United States will be isolated, as nation after nation refuse to join them. The US is essentially powerless to do anything further politically in Ukraine. Russia and China have begun to comprehend how much economic leverage that they really possess. The Obama Admin has no clout, only military options and deep debt burden, a dangerous combination, and no surprise it has gone the fascist route. The US can threaten to slap sanctions on Russia or threaten to kick Russia out of the G-8 Meetings. But the sanctions will result in USTreasury Bond dumping with perhaps growing momentum if joined by other major creditors. Besides, the G-8 has already been overshadowed by the G-20.

On the financial front, Russia & China hold approximately 25% of all foreign-held USGovt debt. If they decide to coordinate a massive multi-sided sale of USTBonds, it could rapidly create a nightmare scenario. In addition, Russia is the largest exporter of natural gas and the second largest exporter of crude oil in the world. China has moved into the lead position as global oil importer nation. Together, Russia & China could decide to execute a series of kill shots to the Petro-Dollar, a project possible to be done almost overnight. Already the weakened, if not fractured, alliance with Saudis has rendered the Petro-Dollar a sitting duck on the geopolitical stage. Therefore conclude that when it comes to Ukraine, the United States definitely does not possess the leverage. The rest of the world will not abandon Russia over the Ukraine situation. Worse, China has chosen to publicly stand with Russia on this issue. The rest of the world will not alienate China either.

The Chinese state news agency Xinhua has publicly rebuked the West for their role of the Ukrainian crisis. The Xinhua accused Western powers of adopting a Cold War mindset towards Russia. They rebuked the USGovt for trying to isolate Moscow at a time when diplomacy is called for. The news agency pointed out that Russia and Ukraine have deep cultural, historical, and economic connections over the last several centuries. They cited openly a respect for Russia's unique right in mapping out the future of Ukraine. See the Economic Collapse article (CLICK HERE).

◄$$$ IN A RECENT UNITED NATIONS ACTION, RUSSIA CAST A VETO, AND CHINA ABSTAINED FROM A SECURITY COUNCIL RESOLUTION ON THE CRIMEAN ANNEXATION IN UKRAINE... THIS IS TO BECOME THE NEW PATTERN AS THE NEW AXIS EMERGES... CHINA WILL EMERGE AS THE GLOBAL DIPLOMATIC LEADER, ASSISTED CAPABLY BY GERMANY... HOWEVER, GERMANY PLAYS A GREATER ROLE AS COMMERCIAL PLAYER IN THE PROCESS OF PIVOTING TO THE EAST AS THE EURASIAN TRADE ZONE COMES INTO BEING... THE ANGLO-AMERICANS WILL NOT SEE THE GERMAN PIVOT COMING... MEANWHILE, NEW YORK AND LONDON ARE BEING DRAINED OF CAPITAL. $$$

The US war merchants and fascist team put forth a UN Resolution that went nowhere. Instead, it displayed the new axis forming in the East. Curiously, the US draft does not directly blame Russia for the crisis in Ukraine. Room exists for diplomacy, but the room is full of venom and entirely polarized. Given the corporate objectives of the West in energy and agriculture, war seems unthinkable. The superpowers are all nuclear armed. The United States is badly budget constrained, and does not have the means for yet another costly war in a long string of predatory wars. Neither is Russia prepared physically or psychologically to engage in war, although disillusioned with the West. The major parties might want to find a reasonable way out of the current crisis, but the US will not save face in any outcome. The Ukraine Govt might want to find a way to avoid an immediate collapse, a great risk. The US, UK, and EU wish to make a stand, but do not wish to force Russia into a violent conflict. The West wishes to grab Ukraine. The best solution is an autonomous Crimea within Ukraine, within which Russia's the military presence can be guaranteed.

The West cannot expect to wrestle the Russian Naval port away from Russia and expect any stability. If the Russian Navy attempted to block the Chesapeake, only then would the overreach in an untenable situation be fully comprehended by American citizens. The unexpected winner is to be China, which will likely play an active role in facilitating a diplomatic solution to the current crisis. They can offer the Kremlin some wise counsel, support the Russian positions overtly and in hidden ways, while stepping forward as intermediary in formal discussions. A key point, China should work more together with Germany since in a unique position. Its position and attitudes are somewhat different from those of the United States and other European countries. The Germans are multi-lateral in their position, with a long history with the Russians and Eastern nations of Europe. It can persuade Russia to de-escalate the situation as they work toward a wide array of commercial pursuits. See the Zero Hedge article (CLICK HERE) and The Diplomat article (CLICK HERE).

Colleague Craig McC in Northern California offered an excellent perspective. He believes the reliable and insightful Zero Hedge staff misses the big story, on how China has emerged as the world's power broker. Only the Beijing crew can mediate the Ukraine situation. China is making notable progress in becoming the principal mediator in the Syria conflict. In many ways, China has been working to constructively engage Iran, like in pipeline funding. As their Middle East role rises to cast a shadow over US interests (both constructive and destructive), the process of Saudi Arabia pivoting towards China will be accelerated, pushing the Petro-Dollar into obscurity. The Middle Kingdom of Asia with the assistance of Russia led the West into a diplomatic trap, and has emerged as the power broker. At the same time, the new role of Germany as China's partner in diplomatic mediation will eventually come into view. Germany is absolutely critical, and the emblem of the Great Prize of Europe, a Jackass point made for seven years. For Europe and Asia to come together in a highly constructive manner like in a grand consortium, it requires Germany at its center. The Germans will represent the Western position, soften it, while they actually pivot to the East and join the Eurasian Trade Zone on the commercial front. The US wants German support in banking and war pursuits, both dead ends. The diplomatic role of China and the commercial role of Germany are absolutely critical elements of the birth of the Eurasian Trade Zone. Meanwhile, the observers in Eastern Europe are actively watching the harmful role by the West, and constructive role by the East. They will join the trade zone eagerly, but at a later date after more gutting of their wealth occurs. Regard these developments as Yuan positive and USDo llar negative.

The Voice confirmed this important global pathway. He believes the events will lead to a new European-Asian axis emerging with its strength and central durability coming from Berlin, Moscow, and Beijing. It is happening by default, as the US and British have withdrawn from constructive stable endeavors, leaving a vacuum. Worse, the Anglos, Americans, and French will be revealed as clownish bagholders whose calling cards are violence and deceit. In fact, if the United States blinks or flinches, the Chinese and Russians will crush them economically. The US is vulnerable to the extreme. He pointed out that Russian companies and the Russian central bank have withdrawn far in excess of $350 billion from the US financial system in recent weeks, and they are to drain more next week. Both New York and London are being drained of capital during the Grand Paradigm Shift in progress. A parallel path is underway like the massive gold drainage by China from the London banking sector. All and everybody will be impacted. The criminality and narcissism of the Inner Beltway Boyz is a case for a secure institution in formal treatment, like a sanitarium.

◄$$$ FOREIGN USTREASURY BOND HOLDERS ARE QUICKLY ABANDONING THEIR CUSTODIAN AT THE US FEDERAL RESERVE, OUT OF DISTRUST... THE NATIONS SEEK ALTERNATE LOCATIONS TO KEEP THEIR BOND HOLDINGS, BUT THEY MIGHT BE SEEKING ALTERNATE BROKERS TO DUMP THEIR ASSETS WITHOUT HARSH RETALIATION BY THE USGOVT... THE BULK OF THE $105 BILLION IN USTBONDS DUMPED IN THE PAST WEEK IS SUSPECTED TO BE FROM RUSSIA & CHINA... RUSSIA IS MAKING SIZEABLE WITHDRAWALS IN OTHER NATIONS OF THE WEST. $$$

Russian companies have made very large bank withdrawals from the West in the last few weeks, the momentum building rapidly. The activity is taking place in the great many large banks in the United States, England, and Western Europe. They are fearful that any USGovt sanctions over the Ukraine crisis could lead to an asset freeze, according to bankers in Moscow who shared their opinions. The already insolvent US banks could next suffer a blowback from even worse shortage of capital. The US banks are highly vulnerable. See the Financial Times video (CLICK HERE). The bigger story is the historically unprecedented decline in foreign central bank USTreasury Bond holdings recorded in the latest week. It is believed that Russia is shifting its USTreasury holdings out of the USFed custodial accounts and into off-shore accounts. That way, Russia would retain control over their assets, like for sale of its portfolio if the United States and its European allies impose economic sanctions over the growing geopolitical tensions. USTreasury securities held in custody for foreign official and international accounts tumbled by $105 billion in the week that ended March 12th, according to the federal data. It was a shocker! It was the largest reduction seen in several years. Creditors make the rules and pull the strings, assuring their continued control of assets. Some powerful entities will soon find out that owning debt is not wealth, and debtors should not play such games with their creditor nations. Debtor nations with insolvent banking systems should be doubly cautious, rather than doubly aggressive. See the Zero Hedge article (CLICK HERE).

◄$$$ AS THE UKRAINE PRESSURE INTENSIFIES, RUSSIA WARNED HOW SANCTIONS WILL BOOMERANG... CRIMEA HAS VOTED TO BE ANNEXED BY RUSSIA, ITS STRATEGIC NAVAL PORT TO CONTINUE UNDER THE RUSSIAN NAVAL FLEET... APART FROM GOLD THEFTS AND GAS FIELD CONQUESTS, THE UNITED STATES FACES BECOMING ROADKILL IN BOTH COMMERCE AND PRESTIGE. $$$

The battle is on between foreign ministers. US Secretary of State John Kerry and Foreign Minister Sergei Lavrov have begun telephone conversations. Russia expects any USGovt sanctions imposed on Moscow will boomerang back on the United States. Russia claims that Crimea has the right to self-determination. To be sure, armed men tried to seize another Ukrainian Military base on the peninsula. Crimea is a grand tactical prize for its naval port and access to rule over off-shore drilling projects. During the call, Lavrov warned against hasty and reckless steps could render deep damage to Russian-US relations. He said, "Sanctions [imposed by the USGovt] would inevitably hit the United States like a boomerang." The parties have made two tense high-level exchanges during a quick 24-hour period, in discussion over the seizure of Ukraine's Crimean peninsula by the pro-Russian faction in Ukraine. Russian President Vladimir Putin wasted no time in capturing the valuable strategic naval port. Putin and US President Barack Obama conducted a one-hour long phone conversation that did nothing but clarify their opposing positions. The inept inexperienced arrogant reckless Obama Admin announced the first sanctions against Russia on March 6th, the dutiful puppet.

The position put forth by Vladimir Putin is that Ukraine's new pro-Western officials had acted illegitimately over the Eastern, Southeastern, and Crimea regions. He claimed Russia responded to calls for help, and acted accordingly, in full compliance with international law. The on-ground reports indicate that 30,000 Russian soldiers are stationed in Crimea, compared to the 11,000 permanently based with the Russian Black Sea fleet in the port of Sevastopol before the crisis. Russia will save $90 million in annual rent for the Sevastopol base, which until now was payable to Kiev, more stress to the new regime. A Ukrainian missile defense post in Sevastopol was taken over control without any shots fired. The pro-Russian Crimean premier cited the standoff as over. Some squabbles have arisen over vehicle license plates being Russian. The Crimean Parliament is dominated by ethnic Russians, and voted suddenly to join Russia via annexation. A national referendum takes place this weekend, with many watchful eyes. See the Reuters article (CLICK HERE) and the roadkill graphic. Never has the United States been governed by more incompetent, reckless, and corrupt leadership.

In expected manner, the Crimean vote will not easily be recognized. The interim nazi Prime Minister Maidan installed in Ukraine by the USGovt security wing has warned the Crimean Parliament that no nation in the civilized world will recognize its referendum on joining Russia. Arseniy Yatsenyuk and others in the Kiev government have called the vote unconstitutional and illegitimate. But the referendum has the support of the Russian Parliament. The complexity is clear. The speaker of the upper house in Kiev reitereated that if the Crimean people vote on March 16th to join Russia in the referendum, then they would unquestionably back their popular choice. Expect the Eastern Hemisphere reaction to be swift in acceptance. Look for China and Iran (two of the countries with the oldest cultures) to recognize the people's choice to re-unite with Russia within a single day. Look for Belarus, Brazil, and other nations likely to follow soon afterwards. The nod by Romania, Bulgaria, and Poland will be interesting, since they are occupied by Western oil companies. Their lands are in the process of being raped by hydraulic fracking. See the BBC article (CLICK HERE).

◄$$$ RUSSIA HAS CALLED FOR PAYMENT ON THE OVERDUE BILL OF $1.89 BILLION UKRAINE GAS DEBT DURING THE ONGOING EVENTS IN CRIMEA... A STANDOFF HAS TAKEN PLACE IN THE CRIMEAN PENINSULA, JUST ANNEXED BY RUSSIA IN RESPONSE TO THE KIEV COUP... THE NAVAL BASE IS TOO IMPORTANT TO RISK FOR THE RUSSIAN MILITARY, FOR ITS ACCESS TO THE MEDITERRANEAN THROUGH TURKEY. $$$

The Kremlin disclosed that Ukraine's natural gas debt has climbed to almost US$2 billion, an untenable situation in need of address. The Russians signaled that gas supplies might be cut, ratcheting up pressure. Any such cutoff would not be a direct economic attack to the West, since Ukraine is in chronic arrears on gas payments. But the effect on Western Europe would be clear, in reduced gas line pressure. The game is on, as the important naval port in the Black Sea Crimea region is being fought over, after being easily seized, a quick embarrassment to the Kiev regime. Ukraine has failed to make its February fuel payment, partly as result of the chaos imposed by the US agents. The official balanced owed to Russia stands at $1.89 billion, according to OAO Gazprom. They are no stranger to harsh tactics. They halted supplies to Ukraine five years ago amid a pricing and debt dispute, which reduced flows to European customers. The standoff is clear. The Russian Parliament Duma decided to accept the results of a March 16th referendum on Crimea joining Russia. On the other side, the US puppet with Israeli connections, Ukraine Premier Arseniy Yatsenyuk reiterated that his cabinet deems the vote illegal. The Kiev puppet crew seeks hastily to confirm a bailout, which will surely gut the nation, just like in Greece. The Crimean peninsula has strategic importance as the only warm water Russian Naval port. The Russian Navy seized the facilities in Crimea, in the wake of the oust of Moscow backed President Viktor Yanukovych. The peninsula was once part of Russia and remains the home to its Black Sea Fleet. Russia would no more give up Crimea than the USNavy would give up the Chesapeake. See the Bloomberg article (CLICK HERE).

## UKRAINE AS OBJECT OF PLUNDER

◄$$$ GOLD RESERVES OF UKRAINE WERE STOLEN, THE 33 TONS OF UKRAINE GOLD MOVED TO NEW YORK... THIS IS HOW SPONSORED POPULAR UPRISING AND WAR HAVE BECOME CLOUD COVER FOR NATIONAL THEFTS, THE MOTIVES ALWAYS FOR CONTROL, PILFERAGE, AND CORPORATIVISM... WITNESS THE EXPORT OF THE FASCIST BUSINESS MODEL. $$$

The Boryspil Airport was the site of a major armed robbery with hastened getaway on March 7th, as the US Strartoval plane loaded with gold reserves left Ukraine. Under the cover of darkness and the deep night hours, at 2am the airport managing staff observed an unregistered transport plane take off from the designated airport runway. According to the eyewitnesses at Boryspil, the aircraft was loaded with four collector vehicles and two cargo minibus Volkswagens. All the arriving truck license plates were missing. When they arrived, out from the trucks came about fifteen people in black uniforms, wearning masks and body armor. Some of them were armed with machine guns. These people downloaded more than forty heavy boxes to the plane. After the load was completed, some other unidentified men also arrived to enter the plane. The entire process was carried out in a huge hurry. After the procedure, the unmarked trucks immediately left the runway, and the plane took off on an emergency basis.

The airport officials immediately notified the government officials in Kiev of the mysterious operation at Boryspil, and were given a strong recommendation "not to meddle in other people's business." Clear enough, but if the national treasure, then it is indeed everyone's business. Later, the editors called back one of the senior officials of the former Ministry of income and fees. He reported that on direct orders of the new leaders of Ukraine, all the gold reserves from the central bank in Kiev had been taken the United States. A source in the Ukrainian Govt confirmed that the transfer of the gold reserves of Ukraine to the United States was ordered by the acting Prime Minister Arseny Yatsenyuk. Perhaps a wider military conflict is anticipated. Or perhaps the coup was designed to gut the national wealth quickly and efficiently. See the Jesse Crossroads article (CLICK HERE) and the NewsWire article (CLICK HERE). For a direct (always imperfect) translation of an original article, see the Iskra News article (CLICK HERE). Witness the fascist plunder. This is precisely the way they do it. It is called democracy at gunpoint, theft under the din of chaos. However, the majority of Ukraine's gold bullion reserves are located in Moscow, according to The Voice.

◄$$$ KAYE ON KING WORLD NEWS CONFIRMED THE 33 TONS OF UKRAINE GOLD (WORTH ALMOST $2 BILLION) WERE TAKEN TO THE NEW YORK FED... HE EXPECTS THEY WILL NEVER SEE IT AGAIN. $$$

Eric King might be insufferably arrogant, and a poor promoter of gold mining stocks, and a bad citizen when defending copyrighted material taken from his website, and a clumsy transcriptor of interviews, and a dishonest colleague during a 2010 conflict with the Jackass, but he made a great comment. He said, "Whether the United States is taking down Saddam Hussein in Iraq, or Muammar Gaddafi in Libya, there always seems to be gold at the end of the rainbow, which the United States then appropriates." Exactly! Eric King misses the gold larceny angle as it applied to Syria and Saudi Arabia, both in progress but far less visible. William Kaye of Hong Kong hedge fund fame offered his perspective on the Ukraine central bank gold heist.

"There are now reports coming from Ukraine that all of the Ukrainian gold has been airlifted, at 2am Ukrainian time, out of the main airport Boryspil Airport in Kiev. It is being flown to New York, the presumable destination being the New York Fed. Now that is 33 tons of gold which is worth somewhere between $1.5 billion and $2 billion. That would amount to a very nice down payment to the $5 billion that Assistant Secretary of State Victoria Nuland boasted that the United States has already spent in their efforts to destabilize Ukraine, and put in place their own unelected government. The United States installed a former banker in Ukraine who is very friendly to the West. He is also a guy with central bank experience [in Israel]. This would have been his first major decision to transport that gold out of Ukraine to the United States. You may recall that allegedly the logistical requirements prevented the New York Fed from returning the 300 tons of gold the United States stores for Germany back to Germany [exposing their hypocrisy].

After a year of waiting, the New York Fed only sent Germany 5 tons of gold. So only 5 tons of gold was sent from the Fed to Germany, and it was not even the 5 tons that had been originally stored with the Fed. Even the Bundesbank has admitted that the gold sent to them by the New York Fed had to be melted down and tested for purity because it was not Germany's original bars. So how is it, since logistical requirements are supposedly such a major issue, that in one airlift, assuming this report is accurate, all the gold Ukraine possessed in their vault was taken out of Ukraine and delivered to the New York Fed? I think anybody with any active brain cells knows that just like Germany, Ukraine will have to wait a very long time, and very likely will never see that gold again. Meaning, that gold is gone."

See the King World News interview (CLICK HERE) or the GoldSeek article (CLICK HERE). The latter article cites how a Russian-Ukrainian news agency describes the suspicious transfer of Ukrainian gold to the United States in clandestine manner. The new central bank head Stepan Kubiv has well-known allegiance to Europe, has past experience with the Israeli central bank, and holds an Israeli passport, just like many Neo-Con nazis within the Bush II Admin.

◄$$$ THE LOOTING OF UKRAINE HAS BEGUN, THE ACTIONS TO BE TRULY DEVIOUS, BROADLY APPLIED, DONE IN THE OPEN, AND UGLY... EXPECT THE VISIBLE EFFECTS TO BE OBSERVED BY THE GLOBAL COMMUNITY... THE UKRAINE PEOPLE HAVE BEEN DUPED AND BETRAYED, BY A DIFFERENT GANG OF SELF-SERVING OLIGARCHS CARRYING NAZI BUSINESS CARDS. $$$

Paul Craig Roberts is a bold man, a courageous patriotic man, with excellent insight into half the world. He served as Asst Secy in the Reagan Admin. He sets the record straight on the upcoming rape and pillage of Ukraine by Europe, under the guiding American hand. The USGovt security apparatus has gone over the line in a highly visible pathetic putsch. Here is an excerpt that captures the essence of his alert to the betrayal, the hypocrisy, the exploit, and the degradation using a different gang of corrupt oligarchs. He wrote, "Naive protesters who believed the propaganda that EU membership offered a better life are due to lose half of their pension by April. But this is only the beginning. The corrupt Western media describes loans as aid. However, the 11 billion Euros that the EU is offering Kiev is not aid. It is a loan. Moreover, it comes with many strings, including Kiev's acceptance of an IMF austerity plan. The austerity plan will cut social services, funds for education, layoff government workers, devalue the currency, thus raising the prices of imports which include Russian gas, therefore electricity, and open Ukrainian assets to takeover by Western corporations.

Ukraine's agriculture lands will pass into the hands of American agri-business

In the former Russian provinces of Eastern Ukraine, Putin's low-key approach to the strategic threat that Washington has brought to Russia has given Washington a chance to hold onto a major industrial complex that serves the Russian economy and military. The people themselves in Eastern Ukraine are in the streets demanding separation from the unelected government that Washington's coup has imposed in Kiev. Washington, realizing that its incompetence has lost Crimea, had its Kiev stooges appoint Ukrainian oligarchs, against whom the Maiden protests were partly directed, to governing positions in Eastern Ukraine cities. These oligarchs have their own private militias in addition to the police and any Ukrainian military units that are still functioning. The leaders of the protesting Russians are being arrested and disappeared [which is a Langley specialty]. Washington and its EU puppets, who proclaim their support for self-determination, are only for self-determination when it can be orchestrated in their favor. Therefore, Washington is busy at work suppressing self-determination in Eastern Ukraine." The hypocrisy and criminality is thicker than mere words can describe. See the Paul Craig Roberts website essay (CLICK HERE). The other half of the world is not within view to Roberts, where the USDollar alternative is being developed. It will arrive as the Gold Trade Standard.

◄$$$ THE SWISS BANKS FROZE ASSETS AFTER THE YANUKOVYCH REGIME HAD MOVED $70 BILLION INTO OFF-SHORE ACCOUNTS AND THE STATE COFFERS WERE LOOTED... THE WEST EMPLOYS THE SAME TACTICS EVERY TIME, DIRECTLY FROM THE NAZI PLAYBOOK.... IT IS ABOUT NATIONAL THEFTS OF WEALTH. $$$

Arseniy Yatsenyuk addressed the Ukraine Parliament immediately after the coup d'etat, which some errantly call an election to the prime minister post. He told the lawmakers that the exiting Yanukovych regime had transferred $70 billion into off-shore accounts, leaving the state coffers empty and robbed, in his words. A $3 billion loan from China is also unaccounted for. In Switzerland, the government said it will publish a decree freezing Yanukovych's funds the very next day. Banks have a due diligence requirement regarding Ukrainian money held in the country, it claimed. The Swiss banks are pretending to keep the Old Ukraine funds secure, when in fact they are stealing the funds. The principal off-shore destination in all of Europe is Switzerland. The Swiss Govt gave no indication of any money deposited in the country. So the US-led forces steal the money before the coup, during the coup, and after the coup (central bank gold). The Swiss Modus Operandi has not changed since before World War II, a primary chapter in the Nazi Playbook, and an exported practice from the Fascist Business Model. See the Bloomberg article (CLICK HERE).

◄$$$ UKRAINE HAS IMPOSED CAPITAL CONTROLS, LIMITING FOREIGN CURRENCY WITHDRAWALS... BANK DATA HAS BEEN CAPTURED, SENT TO THE BIG EUROPEAN BANKS... THE NATION HAS BEEN GUTTED, SO THE LEADERS WILL CLOSE THE GATES AFTER DAMAGE DONE. $$$

A consolidation is in progress. The Ukrainian central bank has a plan to bail out the nation's mostly private banks, all insolvent. It would provide any required funding but only if they are placed under open control of the National Bank of Ukraine. In so doing, the big European banks would be given an efficient way of passing all the banking details, including asset holdings by the local population. Consider the coup d'etat an annexation of the country's banking system by a benevolent predatory Europe to be complete. The NATO ploy might not work, but the bank data has been captured. The observers are watching every move by Western thugs in high office.

The Itar-Tass news has reported that Ukraine's national bank has imposed temporary limits to withdraw money from foreign currency deposits. The effective limits are at the equivalent of US$1500 per day. These are clear capital controls. When the national currency is crashing at a record pace to historic lows, the best protection is to limit FX transactions. The central bank's capital controls do not touch local currency in Hryvnias. The circulation has adequate domestic currency, and Ukraine can print it in infinite amounts. Expect a mindboggling rapid decline in foreign reserves. Expect massive inflation to come, and continued fast decline in the Hryvnia exchange rate. The price inflation effect will hit the public very soon. They will take to the streets by summer. The counter-coup in Ukraine might take place very quickly, like in late 2014, when the bankruptcy is total and the economy is motionless. In Egypt it took just over 18 months. See the Zero Hedge article (CLICK HERE).

◄$$$ UKRAINE HAS $23 BILLION IN LOANS TO BIG WESTERN BANKS... VIEW THE TAKEOVER AS AN INVASIVE CLAIM ON COLLATERAL... NEWER PIPELINES FROM RUSSIA BYPASS UKRAINE... WITNESS FAILED STRATEGY AFTER FAILED STRATEGY BY THE WESTERN REGIMES. $$$

European banks hold over $23 billion in outstanding loans in Ukraine, the data according to the Bank for Intl Settlements (BIS). These big banks are in line to become major losers as the nation collapses, an absolutely certain event, a Jackass guarantee. The Italian banks, for instance, have loaned nearly $6 billion. Ukraine heavily depends on Russia for 58% of its gas supply. It cannot easily or quickly diversify with other second sources. It must continue with Gazprom for its energy supply, a highly precarious position. The Gulf nation of Qatar is a major exporter, but Ukraine cannot receive shipments of LNG nor delivery arrivals on Qatar Airways. A transition has been in progress for at least a decade of time. Despite how Russia exports 66% of its gas to the EU through transits in Ukraine, the country is gradually losing its importance as a transit hub. Alternatives are in progress. Both the newer Nord Stream and South Stream pipelines bypass Ukraine, based in elaborate undersea systems. The Nord Stream, finished in 2011, links Russia with Germany beneath the Baltic Sea. The South Stream will pass beneath the Black Sea, expected to be ready before the end of 2015.

In the global economic picture, the Western Coalition led by the banker syndicate, supported by the energy firms and war machine, urgently needs Ukraine to be out of the Eurasian economic union promoted by the Russia and China. The hidden motive remains to annex Ukraine into the NATO fold, a delusional goal which will never come into reality. When the NATO Secretary General Anders Fogh Rasmussen said that an IMF-EU package for Ukraine would be a major boost for Euro-Atlantic security, he clinched the motive finally exposed. The main objective for the West is NATO annexing Ukraine. The United States and its NATO band will not prevent Ukraine from serving as a main cog gear to the Eurasian Trade Zone. Neither the Empire of Military Bases nor the encirclement of Iran will succeed. The pivot to Asia attempting to exclude China in the Trans Pacific Partnership will not succeed. The attempt to encircle Russia with bases and missile defense will not succeed. The Middle East strategy to impose democracy will not succeed. No USGovt foreign policy inititiatives have succeeded, in a grotesque display of failure. Their only successes are gold pilferage and other wealth pillage. Meanwhile, Ukraine is slouching towards federalization.

The Western Ukraine can go under the Western control, but the entire Eastern European region is observing the rape and pillage. The Kiev regime changers will have no say on autonomous Crimea. The bonus item is almost humorous. Russia in the process will save $90 million in annual rent for the Sevastopol naval base, which until now was payable to Kiev. Not anymore. The endgame is all but written. Moscow controls Crimea for free. The energy giant controllers will direct the US & EU oligarchs and bankers to control the Western Ukraine wasteland, certain to see plunder amidst a disastrous exercise in capitalism. In charge in Kiev will be a gaggle of Western puppets and oligarchs, with a heavy sprinkle of Neo-Nazis, surely an uneasy coalition. Watch Ukraine collapse before 2014 ends, and a counter-coup begin to marshall forces before 2015. See the Asia Times article (CLICK HERE).

◄$$$ EUROPEAN UNION OFFERED UKRAINE $15 BILLION, BUT AID HINGES ON AN INTL MONETARY FUND DEAL AND THE USUAL POISON PILL WRAPPED IN AUSTERITY MEASURES... THE WEST IS TRYING TO PUT ITS HOOKS IN DEEP, MORE ASSET EXTRACTIONS... THE RECONSTRUCTION WOULD BE IN RESPONSE TO MUCH HARM CAUSED BY THE USGOVT PROJECT... THE NEW KIEV REGIME CLAIMS IT NEEDS $35 BILLION. $$$

The European Union offered a larger than expected $15 billion package of aid to Ukraine at the turn of March, doled out as loans and grants over the next several years. The EU station chief Barroso said the assistance would require widespread reforms and an accord between Ukraine and the Intl Monetary Fund. The EU has offered a more comprehensive program, which by coincidence matched the amount Russia had offered Ukraine before the Yanukovich regime was dismissed and disbanded. The package contained all the usual blather about reforms and budget constraints, which result in fast deterioration. Within the aid package is EUR 1.6 billion in direct loans and EUR 1.4 billion in grants, half of which arrive over the next two years. Beyond, EUR 3 billion will be released from the European Investment Bank between 2014 and 2016. Another EU-related institution, the European Bank for Reconstruction & Development, seeks to provide EUR 5 billion more in funds. More leveraged funds could be made available from the Neighborhood Investment Facility, created to invest in projects in the EU's nearby states.

After taking office late last month in the disorderly criminal fascist coup d'etat, Ukrainian Prime Minister Arseny Yatseniuk announced the country needed $35 billion to survive the next two years. EU officials are currently in Kiev to help assess its needs. Perhaps the vile bankers in New York, London, and Switzerland wish for the EU to fund Ukraine, with Euro Central Bank ready assistance, so that they can steal it. Twenty cases lie as precedent. See the Reuters article (CLICK HERE).

## WEAKNESS IN COALITION TOWARD UKRAINE

◄$$$ IN AN ULTIMATE IRONIC TWIST, THE IMF $3 BILLION AID PACKAGE FOR UKRAINE MIGHT ACTUALLY GO TO RUSSIA AFTER A HOLDOVER IN KIEV, DUE TO AN OBSCURE CLAUSE IN THE BONDS... IMMEDIATE TECHNICAL DEFAULT IN UKRAINE IS NEXT, DUE TO DEBT RATIO VIOLATIONS WITHIN A RUSSIAN LOAN COVENANT, DEVISED IN LONDON... RUSSIA WILL HAVE THE RIGHT TO TAKE THE FUNDS DUE TO DETAILS ON THEIR LOAN PACKAGE... UKRAINE MIGHT FIND ITSELF VERY ISOLATED AND BROKEN QUICKLY, WITH NO PROSPECT OF AID, A GUTTED COLLAPSING NATION... THE US-WEST TEAM HAVE CAPTURED A SINKING DERELICT VESSEL... PUTIN IS SEVERAL STEPS AHEAD OF THE WEST, THE TRAP GROWING IN VISIBILITY. $$$

Startlingly, the details on the Russian loan package to Ukraine are governed by UK law as the London crowd wanted to participate. And participate they did. The disposition of the Ukraine loan is subject to the exclusive jurisdiction of British courts. An odd clause in the bonds exists, detectable during a review of the bond agreement. "Paragraph 3(b) under Covenants on Debt Ratio: So long as the Notes remain outstanding the Issuer shall ensure that the volume of the total state debt and state guaranteed debt should not at any time exceed an amount equal to 60 percent of the annual nominal gross domestic product of Ukraine." Since many hedge funds are heavy investors of Eastern European debt and other securities issuance, the formal usage of London jurisdiction is something hedge funds have required in a rather common practice. In 2011, the Greek bonds issued under English law held by the hedge funds were paid in full to prevent a CDS trigger. Some say they acted as off-shore hidden proxies for Deutsche Bank. Contrast to Greek law bonds where defaulted bonds were made to undergo a voluntary haircut, and went so far as to declare it a non-credit event. The debt/GDP ratio is a killer feature for any other country to lend without Russian approval, including the IMFund itself. Without Russian approval, the loan granted must be returned. Russia has Ukraine trapped.

Consider the implications of that critical clause. The moment the West or the Intl Monetary Fund extends a large loan to Ukraine, that country will almost certainly be thrust into a position with debt-to-GDP ratio that exceeds 60%. Then the Russian loan will be put into default, due to its covenant, which would give Russia the right to demand immediate repayment. They could be repaid using the IMF funds! Because the bonds are governed by British courts, neither Ukraine nor Russia can manipulate them. The Ukraine Govt would be hamstrung and bound, unable to use its newly supplied bailout money. Beyond any doubt, Putin and the Russians are outthinking the West by at least three steps in advance. See the NBC News article (CLICK HERE).

EuroRaj interprets the bond covenant and default likelihood. Based on the sequence of events, and the strictures imposed by loan covenants, Ukraine has two choices. 1) It can default in June and cause a sequence of European bank failures, or 2) It can implicitly hand over the Kiev control stick with sovereignty to Russia for $15 billion. He confirmed the bond covenant features, the benefit of his London experience. A lot of the emerging market and high yielding credit extension (junk debt, like junk bonds) of the Eastern European and African variety that are traded out of London are put under the far more accommodative UK common law. It is not more advanced, but rather favors the side of the table with bankers and financial firms. The hedge funds who buy them, they tend to insist on them. Under a default scenario, the fund managers believe they are at an advantage with settlement under English law, rather than local law (like Greece or Ukraine) where it would provide for a higher recovery, when conditions do go sour. He added some editorial notes of value, since an experienced observer of the geopolitical stage from his banker perspective. It follows with my edits.

The clowns presently running Kiev are soon going to be taking a long vacation, maybe below ground. As for Vladimir Putin, he seems far more in control than the half-blind Western press indicates. Consider the line-up of events in the last two to three years, with done deals indicating Russian successes. Iran is a done deal, with more Chinese steering. Syria is almost a done deal, the pipeline and naval port to be secure, but messy. Ukraine will be a done deal, possibly less messy in future months than people expect. It will fall apart financially very rapidly, then politically just as fast. Iraq is a work in progress, sure to be a thorn in the US side. After the war, Russia will build the new Iraqi pipeline to Syria. See the PressTV article (CLICK HERE). Turkey is next but should be easy to convert, a swing nation of importance. India is leaning East, sure to stay on a virtual fence. The Saudis will be left to the Chinese to manage, in a new subjugation role that will be full of intrigue during the transition. The Jackass reminds that Turkey is as important as Ukraine in its swing nation role vis-a-vis the Eurasian Trade Zone. Turkey is the home of the Incirlik Air Force Base, which has served as a heroin depot under the US/UK/Europe guise for a few decades. Turkey sits on the fence as a Moslem state traditionally loyal to Europe, but in service to the Arab world in the gold market. The Ottoman Empire once extended to Hungary. When Ukraine and Turkey both flip to a devoted position in the Eurasian Trade Zone, it is game over.

◄$$$ UKGOVT WILL NOT SUPPORT USGOVT SANCTIONS AGAINST RUSSIA... THE USGOVT WILL AGAIN BE ISOLATED, JUST LIKE IN SYRIA... LONDON DESIRES TO PRESERVE THE RUSSIAN FINANCIAL BUSINESS IN A SEEMING HYPOCRISY... ANY RUBLE DEMAND FOR ENERGY SHIPMENT (AND OTHER SHIPMENTS) WILL SABOTAGE THE NEW YORK AND LONDON FINANCE SECTOR PROJECTS TO INTERVENE AND MANIPULATE DOWN THE RUBLE CURRENCY... THE NATO TREATY MIGHT NOT BE A VALID ACCORD, WHEN APPLIED AS CAUSE FOR MILITARY ACTION IN UKRAINE... LONDON'S RUSSIAN LINKAGE WITH THEIR PROMINENT BILLIONAIRES HANGS OVER THE SANCTIONS DEBATE, EVEN WITH A SPORTS SHADOW. $$$

The Jackass fully expects the UKGovt and Western Europe leaders will back off and not support the USGovt or USMilitary much longer. They will support the energy firm participation, which might (if the West is luck) continue from momentum. Their support will first be gone on sanctions, then on further military action. The undercurrent is natural gas and crude oil supply, a great dependence by these Western nations upon Russia. The outcome has already begun to play out, just like in Syria. One must suspect Kremlin phone calls about cutoff to natgas supply to Britain and European nations. The cutoff would affect homes and industry. Look for Western European nations in the future, when challenges become strenuous, to find a way to abrogate the NATO treaty as illegitimate with Ukraine. It has flimsy standing in a memorandum, not a high falluting treaty. The United States is on a path of extreme isolation. To this point, an extremely important piece of information came forward in London, which did not make the US controlled press networks. A leaked document in the UK indicated that the British would not support sanctions on Russia. The leaked excerpt from the document is as brief as it was critically important from a strategic standpoint. Thanks to HTLetter client DavidD in Ireland.

The UKGovt leak indicates limits of European action on Ukraine with regard to sanctions solidarity. Their effectiveness of any sanctions is another matter, likely futile also. The leak took place in London on Monday March 3rd, when a freelance photographer Steve Back laid eyes on a classified document being carried by a British official into a meeting of the country's National Security Council. It indicated limits to support. One must wonder if the document was intentionally left in the open. The document stated how the UK backs EU-level visa restrictions and travel bans on Russian officials, and supports deployment of OSCE and/or United Nations monitors in Crimea and Eastern Ukraine, but not EU monitors. Next the key part. It added that "Britain does not support, for now, trade sanctions & or to close London's financial centre to Russians." The information reflects a formal agreement by EU foreign ministers in Brussels the same day on targeted measures, but not a full court press. Within the document indicated a clear position that British PM David Cameron will not be willing to risk damage to the British trade or financial interests with respect to Russia. The OSCE is the Organization for Security & Co-operation in Europe.

The spurious NATO treaty has come under further focus. As preliminary, Poland will not receive any NATO support beyond verbal reassurances, even though the nation has complained that the crisis threatens Polish security. They neighbor Ukraine. The UK is one of the EU's top foreign policy powers. It has a special role on Ukraine because it signed, along with Russia, Ukraine, and the United States, the so-called Budapest Memorandum in 1994, which obliges it to protect Ukraine's territorial integrity. However, a very big gray area of obscurity exists. To begin with, this agreement might not even qualify as a treaty. It is more like a hand shake at a dinner party. Ukraine might not be assigned for protection from a US-led coup d'etat against a pro-Russian government in Kiev. The USMilitary appears to be called to protect the borders of Ukraine from an attack directed by the USGovt's own security agencies at the CIA, using its Langley devoted team of mercenaries hired by Blackstone and deploying other foreign mercenaries. This is complicated, but the Jackass believes the NATO treaty couched with the Budapest Memorandum might not be a valid accord to apply in this particular ugly thorny devious case. Let's watch the scrutiny process, when conditions go really sour. See the EU Observer article (CLICK HERE).

The British newspapers have affectionately used the terms Londongrad and Moscow on the Thames to describe the special social and economic impact Russians have had on Britain and its capital city. In fact, Soviet-born billionaires occupy three of the top five slots in the Sunday Times list of wealthiest people. They are buyers of trophy assets such as 100 million Pound (=US$170 mn) mansions, soccer clubs, and newspapers such as the Evening Standard. One of London's most visible Russian oligarchs, Roman Abramovich, spent 59 million Pounds to acquire the Chelsea Football Club in 2003. Since taking control of the club, he has spent 713 million Pounds on players since then, according to the Daily Mail. Abramovich bought a mansion in Kensington Palace Gardens for 90 million Pounds. The story goes much further. More Russians have received special Tier-1 investor visas than citizens of any other country since the visas were introduced in 2008, Home Office data shows. The special visa is given upon investing at least one million Pounds in British assets. Since that year, the influx has been a boon to sectors in real estate and luxury goods, in addition to the financial and professional services industries.

Prime Minister Cameron has warned Moscow it will pay significant costs in sanctions. However, an official document unwittingly exposed to a photographer's lens suggested London opposes trade sanctions and shutting its financial capital to Russians. Ironically, the US-led sanctions could result in far more risk to Britain. Ruben Lee is CEO of financial markets consulting firm Oxford Finance Group. He put it well, saying "We have got more to lose than the Americans. Kerry is happy to push for sanctions because it will not cost them as much." Look for the UKGovt to support token measures against Russia, while reassuring them of continued good relations. Later, expect the British to sever all US support for any confrontation with Russia in Ukraine. No British oil company is involved there. See the Reuters article (CLICK HERE).

◄$$$ USGOVT SECURITY AGENCY IS ACCUSED OF HIRING SNIPERS IN KIEV... THE MEN CARRIED OUT ORDERS BY THE MAIDAN GROUP, WHICH OPERATED UNDER USGOVT GUIDANCE... THE ESTONIAN EMBASSY CONFIRMED THE TAPES AS VALID TRANSLATIONS, FROM A LEAK BY RUSSIA OF THE TAPED CONVERSATIONS. $$$

Behind the Kiev snipers were sinisiter groups working for the new fascist coalition. They killed the police and public alike, with an apparent objective to stir up violence and with amplified chaos. The Russian NSA is being credited for leaking phone call tapes to the embassies and the press. The critical revealing Kiev telephone call was between US Asst Secy State Victoria Nuland and the US envoy to the Ukraine, Geoffrey Pyatt. The call revealed the real puppet masters behind the Maidan Regime. The actual instigators of the Ukraine revolution were none other than the developed world superpowers, led by the United States. Also revealed were tensions between the US and EU officials over strategies on the overthrow of the current government. In a strange twist followed by even stranger twists, the USGovt implicitly confirmed the recording, showing deep anger at Russia and for using dirty tricks. Try not to laugh, as an accusation of dirty tricks came from the side that directed a coup d'etat. The arrogance of the Obama Admin is exceeding only by their incompetence.

An additional telephone call recording was leaked, this more shocking and highly controversial. The call was between the EU foreign affairs chief Catherine Ashton and Estonian foreign minister Urmas Paet. It revealed on tape that all those photos of horrifying deaths of Ukrainians by rooftop snipers during the last days of the stand-off, were in fact not caused by snipers controlled by the outgoing Yanukovich. The snipers who shot at both protesters and police in Kiev were allegedly hired by the Maidan leaders, the fascists installed by the USGovt. Review the sequence of facts on the ground. First the USGovt security shadow forces orchestrate the Kiev overthrow. Then the new leaders in the Kiev government are allegedly found to have fired against their own people, using the same provocation they used to run Yanukovich out of the country, which led to the installation of a pro-Western puppet government. Then came the plunder. Ashton has sternly refused to investigate, since the pro-Western coalition would be quickly discredited. The new Ukraine leadership shot at its own people to fabricate the pretext under which it rose to power.

The offices at the Estonian Embassy have confirmed the authenticity of the recording, the translations provided quickly afterwards. The recording call is between Foreign Minister Urmas Paet and EU foreign policy chief Catherine Ashton uploaded to the internet for all the world to see. The Russians can play rough too. Be sure that many global citizens are not internet savvy, nor do they trust many internet sources. This betrayal by Maidan forces will be exposed gradually, with full impact over time. Many veteran hands suspect the snipers were either Blackwater mercenaries, or men working closely with the devious scummy vile contractors from camps funded by George Soros. See the Zero Hedge article (CLICK HERE) and the Russia Today article (CLICK HERE).

◄$$$ THE UNITED STATES IS USING THEIR AFRICA AND MIDDLE EAST STRATEGY IN UKRAINE, ACCORDING TO AN EX-NSA OFFICER. $$$

Scott Rickard, former intelligence officer for the NSA, was interviewed by Russia Today in a surprising exposure of USGovt methods. Richard also once worked for the USAir Force and the Directorate of National Intelligence. The United States has established strategic networks around the world. They are linked to humanitarian organizations, to fascist organizations, and to mercenary groups who will conduct their dirty work. He pointed out that when thousands of Molotov cocktails are tossed, and hidden organizations are funded for their violent efforts, they operate from NGO groups, the special non-governmental organizations that are neither a part of a government nor conventional for-profit businesses. He claims such groups have been operating in Ukraine for decades. These diverse players have ties at the highest levels in humanitarian organizations, and at the lowest end of the food chain in the fascist politico organizations. He said, "The CIA has operated like this in South America. They have operated like this in Africa. They are going to do this in Ukraine." He indicated no surprise in the current methods being used. See the Russia Today article (CLICK HERE).

## UKRAINE ENERGY ANGLE

◄$$$ WESTERN MOTIVES ON UKRAINE THEATER CENTER UPON NATURAL GAS AND THE OBSTRUCTION OF THE RUSSIAN MONOPOLY... DEVELOPMENT IN WESTERN UKRAINE FOR DISCOVERED GAS FIELDS HAD BEEN HELD BACK DIRECTLY BY THE KREMLIN... THE ENERGY WAR HAS TURNED HOT... THE SOUTH STREAM PIPELINE HAS SIGNIFICANT INVESTMENT IN SERVING AS TRANIST HUB FOR THE SOUTHERN REGION OF EUROPEAN MARKET... NORD STREAM IS DUE NEXT YEAR. $$$

The Jackass expected the Russian response on Ukraine to arrive after the Sochi Olympics were completed. The coup of Kiev, the plunder of Ukraine gold, the theft of funds by Switzerland, and annexation of Crimea by Russia, these are the type of events expected. To be honest, the Jackass expected the Kremlin to wrest control of Kiev, but Putin chose a different strategy. Putin laid a trap for the West to capture the other half of Ukraine, to gut it, to betray that half as the world watched closely. The world is observing events rapidly unfold, except for the sleepy duped gullible Americans, who still watch the major news networks with wide eyes but maybe growing doubts. One wonders what proportion of Americans are aware of the natgas angle in the Ukraine conflict, a basic element of the struggle almost never reported in the US, except in a passing byline comment. The Jackass guesses under 20%, perhaps under 10%. The Jackass doubts 90% of Americans could pinpoint Ukraine on the map, or even cite its neighboring countries. They are fed rubbish on the daily news about independence, liberalized political arena, Russian aggression, even cultural repression by the eastern neighbor.

Russia supplies 30% of European natural gas needs, of which 66% pass through the Ukraine pipelines. Russia also supplies 35% of European crude oil needs. Germany depends upon Russia for 36% of its ngas supply, Italy 27%, and France 23%. The dependence is tremendous, enough to alter the political balance and actual decision making. The data is worth repeating, done so in this report. Last year, when Chevron, Exxon Mobil, and Royal Dutch Shell discovered huge gas fields in Western Ukraine and Poland, the contracts for European processing and supply had been held back by the Kremlin. The Europeans eagerly strive to develop non-Russian gas sources, to establish an independent energy supply from the Russian giant Gazprom. With Ukraine in the NATO fold, or even in the Seven Sister grip, the Europeans figure they will be better off than in the Russian bearhug. Yet the fracking development offers only a couple of years in natgas supply, since depletion is very rapid. So the war was triggered and a split of Western from Eastern Ukraine is seen as viable and stable for the Western war villain architects. The EU and US warmongers have used war too much as a commercial development and infrastructure tool since 911 (see Iraq). The historical, cultural, and religious ties with Russia are deep and extend for a millennium. Also, the Crimean naval port will be taken, annexed, and commandeered by Russia. The US exercises great folly to tinker with Russia's only global warm water port.

To put it succinctly, Ukraine is the passageway for Russian natural gas pipelines, a major transit point for supplying Western Europe markets. but also the site of new gas fields discovered. The new supply will be medium in volume, but short-term in scope. As the energy war unfolds further, the Eurasian Trade Zone will take shape, and its means of payments will not be in USDollars, thus the USGovt sabotage. The Western energy firms lust for control and full development. See the Prison Planet Live video on the broader energy war (CLICK HERE).

◄$$$ LAYOUT OF UKRAINE WITH RESPECT TO WESTERN OIL FIRMS IS CRITICAL FOR UNDERSTANDING THE ENERGY ANGLE AND MOTIVE... THEY CHOSE WAR, COUP, AND PILFERAGE IN ORDER TO ACHIEVE THEIR GOALS... NEXT THEY WILL DISTURB OR DESTROY THE GROUNDWATER SYSTEMS. $$$

Falling into place are hints of who controls the cherished gas fields. The energy giant firms are Chevron, Shell, and Exxon. One should always keep in mind that the USGovt and its agencies are in deep league with the major oil firms. Two recent Ukrainian Govt appointments are very telling, made quickly by the new fascist administration put in place by the USGovt thugs. Igor Kolomoisky is the new head of the Dnipropetrovsk province (called oblast), where the eastern shale gas lies. Serhiy Taruta is the new head of the Donetsk province, also in the east where the eastern shale gas lies. Both men are dual Ukrainian-Israeli citizens. Both are linked to Rinat Akhmetov, who is the top dog among the Ukrainian Oligarchs. The Ukrainian Oligarchy is directly active in the nation's politics, whereas the Russian Oligarchy is not. This is an enduring point of contention and conflict between Vladimir Putin and the Kiev leadership. Consider that Ukraine might serve as a Russian oligarch playground for the outcasts. Kolomoisky already had served as a conduit for Azeri oil coming into Ukraine. The linkage is complete, connecting back to the Mediterranean. The USGovt piddly loan guarantee is a direct line for the $1 billion payoff either to the Ukie Oligarchs or to Gazprom.

Expect that Putin will effectively seal off the remainder of the country's land from further Western oil firm exploitation. The eastern provinces contain one location in current production in the Dnieper Donets Basin, which might be subject to more potential Russian control via capture. But the fertile fields are in the western provinces in the Carpathian Foldbelt, containing up to three times more volume in the deposits. Watch Putin and Gazprom work to raise the natgas prices on the open market. They eliminated the discount offered to their brothers in Ukraine a few years ago. Doing so was a basic FU to the Ukie Oligarchs who have double crossed Vladimir many times. Putin has an ongoing battle with the old oligarchs, whose political leader was the ousted Boris Yeltsin. The old nemesis Mikhail Khodorkovsky is a constant thorn to Vladimir Putin, whom he put in prison, made a public spectacle of, stripped of his assets, and probably trumped up some charges.

Notice the inflitration of energy firms, like on a war theater map below. ENI is an energy giant from Italy. Vitol is a Dutch giant. Royal Dutch Shell is obviously Dutch also, whose deal is worth $10 billion. The US-based Chevron is among the giants with a presence, whose deal is worth $25 billion. The US-based Exxon Mobil presence is more precarious, with Black Sea claims (not on land), but their deal is worth under $1 billion so far. Any big successes would extend the deal to much larger scale in the sea. Tiny Cossach Energy is in effect 100s of times smaller than the other giants. It operates across Eastern Europe, but still is a player. Two gigantic energy basins exist in the region which extend into Ukraine. Thanks to JohnE in Toronto for some excellent detailed information on the energy front.

◄$$$ GAZPROM WARNED OF EUROPEAN GAS SUPPLY DISRUPTIONS... THE RUSSIAN ENERGY GIANT WILL DEVOTE MORE INVESTMENT TO OTHER PIPELINES AND THEIR LNG FACILITIES, ON PURE BUSINESS GROUNDS... PRECEDENT EXISTS FOR GAS CUTOFF WHICH WOULD AFFECT EUROPE... THE KREMLIN IS WILLING TO FOREGO SOME INCOME IN ORDER TO WIN PIECES ON THE GLOBAL ENERGY CHESSBOARD, NOT WHAT USGOVT ANALYSTS ANTICIPATED. $$$

The Kremlin vengeance trump card of Gazprom supply cutoff or reduction has been cited, thus put on the table. Also, the list of Obama Admin allies is dropping quickly in size. The prepared sanctions by the USGovt should make some good comedy. The Jackass first reaction to the Ukraine coup d'etat and pilferage was for quick Gazprom cutoff in vengeful retaliation. It seems the Kremlin is building the case for cutoff, so as to avoid direct geopolitical blame. If the West wants to control the pipelines, let them be empty, was my thinking. In very early March, ITAR-TASS reported that Russian Gazprom warned of action on two fronts. The energy giant could cancel its supply discount as Ukraine's overdue payments surpassed $1.5 billion. In addition, due to simmering political tensions in Ukraine (as they described), indeed aggravated by inadequate economic conditions, some disruptions of gas supplies to Europe could result. By conditions they might mean a diminished ability for customers to make natgas payments. Hence, the Kremlin dropped the hammer, and Europe will awaken to grave concerns over Russia's next steps in the event that sanctions be applied. Expect every Western European capital to put pressure on the inept arrogant aggressive Obama Team, with a goal to avoid Western Europe natgas cutoff or even reduced pipeline pressures.

In late January, Ukraine petitioned Russia for deferral of payments for gas supplied in 2013 and in early 2014. Team Putin estimated the Ukraine debt at $2.7 billion in total, a tad high. At the turn of March, the Gazprom spokesperson said the giant gas firm could cancel its gas supply discount for Ukraine, the overdue debt for gas having reached $1.5 billion. Maybe the Euro Central Bank and USFed could pony up the money to pay the gas bill, and the Kremlin would convert it to Gold bullion. The figure included overdue bills for last year supplies, plus the cost of current deliveries. The situation on payments was called worrisome by the Gazprom chief financial officer, Andrei Kruglov. In doubt was an extension of the current pricing contract. Fast forward to today.

The Russian gas giant G azprom said on March 4th that it did not rule out possible disruptions of gas supplies to Europe over Ukraine's political situation. The Gazprom officials reiterated their intentions to do their utmost to reduce export risks, playing the political card as deftly as possible. They announced, "We will further invest into other export oriented projects such as South Stream and will enhance our LNG (liquefied natural gas) production and export capacity. We also increase our access to underground gas storage facilities in Europe." Sounding like the ever beneficent, CFO Kruglov reminded the global audience said at the moment Russia had been supplying gas to Ukraine according to schedule, although the latter failed to fulfill its debt obligations. The Kiev gang is painted as a deadbeat customer. The gas giant provided exactly the real world cover Gazprom needs to cut its supplies through Ukraine and thus to Europe, done in carefully crafted steps.

Russian Gazprom has some past precedence for gas cutoff to Ukraine, the effects felt beyond its borders in Europe. Russia still supplies between 25% and 30% of European gas needs, the transit conduit being Ukraine. In late 2005, Gazprom said it planned to hike the price it charged Ukraine for natural gas from $50 to $230 per 1000 cubic meters, an elimination of brotherly discount. Russia terminated the heavy price discount, since uneconomic and without justification as it described. The company cited the basic desire for a fair market price, in line with other major customers. Here was the rub. The Kremlin claimed the decision was unrelated to Ukraine's increasingly strong ties with the European Union and NATO, which had been courting the nation for membership (an insane concept). It no longer regarded the Kiev Team as brothers clearly, more like turncoats. The Kiev leaders refused to pay up, and on the 1st January 2006, Gazprom turned off the taps upon failure to come to agreement. The impact was immediate, felt not just in Ukraine. The country is crossed by a network of aging Soviet-era pipelines that carry Russian natural gas to many European Union member states and beyond. Over a quarter of the EU's total gas needs were met by Russian gas, and some 80% of it came via Ukrainian pipelines back then. The proportion has been reduced to 66% recently due to other pipelines and LNG supply routes.

The nations of Austria, France, Germany, Hungary, Italy, and Poland soon reported reduced gas flow, the pressure in their pipelines down by 30%. The dumbass consensus in the Western corrupt corner offices that run the many governments is that Europe's gas supplies are unlikely to be seriously threatened, since Putin relies on those revenues. The Gazprom comments have changed all that poor thought process and anemic strategic planning. Besides, the Kremlin might be selling a truckload of USTreasury Bonds every week in compensation, just to raise cash. Perhaps Gazprom has plans to redirect a large tranch of natgas to China instead, a better client. Never underestimate Putin on the chessboard, since he might have plans to ship natgas by railroad to China. See the Zero Hedge article (CLICK HERE).

◄$$$ EUROPEAN LEADERS ARE DRAWING UP PLANS TO SEND GAS TO UKRAINE, UNDER THE CONTINGENCY THAT RUSSIA CUTS OFF SUPPLY... THE REVERSE CORRIDOR AGREEMENTS ARE BEING EXAMINED... CITED CONTRACT VIOLATION IS LIKELY NEXT, WHICH COULD FORCE BROAD PIPELINE CUTOFF. $$$

Any reverse flow would likely occur first through Slovakia, where EU officials are pressing Slovakia and Ukraine to quickly sign such contracts. An agreement would permit gas to be piped in the opposite direction if the emergency need ever arose. Additional Reverse Flow Corridors could be introduced through Bulgaria and Romania, or possibly through Croatia and Hungary. It is not clear that Gazprom is the sole owner of the Ukrainian portion of Western Siberian (Urengoy-Pomary-Uzhgorod) pipeline. Gazprom is sole owner of its section in Russia as well as in Belarus. Only Gazprom has the pipeline infrastructure to supply natgas to Ukraine, the monopoly giant supplier. Although large natgas producers, Qatar and Iran would have to ship LNG, except that Ukraine has no LNG port facilites. Where applicable, the Ukrainian operator is bound by contracts with Gazprom, and reversing the flow would be considered very much outside the guidelines established by Gazprom. It appears the EU/US is yet again trying to foment legal disobedience in Ukraine. Violation of contracts will give Russia ample grounds to cut off natgas. It might happen that Gazprom will have to shut off all shipments to the EU in order for the EU to follow international law. Russia has contracts and law on its side, somthing the Western press steadily overlooks. See the Guardian article (CLICK HERE).

◄$$$ RUSSIA'S LARGEST OIL COMPANY ROSNEFT IS ARRANGING TO PURCHASE UKRAINE'S ODESSA OIL REFINERY... AN OLIGARCH WHO FLED HAS LOST HIS ASSET... EXPECT MORE RUSSIAN ENERGY FIRMS TO GOBBLE UP DISTRESSED UKRAINIAN FIRMS, AND ASSETS NOT WELL DEFENDED. $$$

The refinery complex as part of the VETEK Group has been secured by Russian state bank VTB on failure to meet debt service obligations. The entire region is in chaos, including the corporate and financial fronts. Rosneft already controls Ukraine's second largest refinery in Lisichansk. The targeted Odessa refinery has the capacity to process 70,000 barrels per day of crude oil per year. It was sold by Russia's #2 crude producer Lukoil to the VETEK Group of Ukraine last year. Serhiy Kurchenko appears to be a victim of the chaos. He is owner of VETEK. Even though a very wealthy man, his wealth grew rapidly under the presidency of Viktor Yanukovich, who was removed from power last month. Kurchenko fled Ukraine last month, his assets lost in the melee.

Kommersant reported an agreement on selling the refinery had been reached last week and the deal could be closed in the near future. Apparently Kurchenko had been unable to repay the VTB loan, which enabled the refinery purchase. He has transferred the asset to the bank, a done deal of lost asset. The refinery last week said the plant might suspend work for maintenance in March, well timed. It also said the plant was processing oil from existing stocks and did not expect new supply in the near future. Got that right! See the Reuters article (CLICK HERE).

◄$$$ THE UKRAINE CRISIS ENDANGERS EXXON'S BLACK SEA GAS DRILLING... THE WESTERN ENERGY FIRMS WILL SEE NO PROGRESS FOR A WHILE, UNTIL THE CONFUSION DIES DOWN... THE LONG SHOT RISK IS THE KREMLIN SOON MIGHT SEIZE ALL ENERGY RIGHTS IN DUE TIME, OR PAYS OUT TO REPURCHASE THE RIGHTS UNDER NEW LEGAL JURISDICTION FROM THE CRIMEAN PERCH... WATCH FOR RENEGOTIATED CONTRACTS, EVEN MAYBE SOME JOINT VENTURES. $$$

The annexation of Crimea has caused some thorny legal entanglements, which likely will result in renegotiation with the Kremlin. Out the window perhaps went the Black Sea energy deposit drilling prospects coveted by Exxon Mobil Corp and Eni SpA (of Italy). Perhaps not. The Kremlin might wish to break the Western energy unity by making cooperative gestures with Exxon, the biggest of all Western firms. The confusion is ripe, as doubt exists whether the fascist Maidan Regime in Kiev will have the power to continue enforcement of oil & gas licenses in Black Sea waters that lie adjacent to the disputed region. The Parliament in Crimea already voted to join the Russian Federation, but the popular referendum will be conducted on March 16th. Chris Weafer at Macro Advisory in Moscow concluded, "Exxon and Shell are now in a legal limbo. [They pursued an] exploration deal with a government which may soon no longer have jurisdiction over the region." A curious battle could ensue if Exxon has platforms in place or under construction, where Russian energy firms might purchase them at discounted prices. If the USGovt security agencies attempt to place Stinger missile sites on the platforms of vessels, then big trouble will come. Russia would then seize the platforms and vessels.

Relations might not be as hostile between Exxon and Royal Dutch Shell with respect to the Kremlin on off-shore rights. But confusion reigns. Exxon sought the rights to drill the Skifska license off the Ukraine coast after discovering the Domino field in 2012 in neighboring Romania. The deposit is considered sufficiently large to permit the poor Eastern European country the prospect of becoming a gas exporter. Exxon Mobil Senior Vice President Andrew Swiger said in a recent investor presentation it still remains interested in getting permission to explore off the Ukraine coast. Finally some sheer hypocrisy and lying through teeth. The Exxon Mobil Chairman and CEO Rex Tillerson claimed that Exxon is not choosing sides, with no political stake in the coup entailing deep dispute. His claim is as believable as never buying advanced carburator patents for car engines, and burying them. His claim is as believable as never having strong USGovt political connections. His claim is not the least bit credible.

The large energy firms are in league with the USGovt, its security agencies, and the mercenaries. A Satanic element exists within the major energy firms, some testimony having come from a Hat Trick Letter client with Canadian experience that involved a big firm (early morning ritual meetings accidentally stumbled upon). Exxon's hands are dirty and bloody. Ukraine is all about oil and gas. The Western oil companies are being insincere at best and deceitful at worst, when making such clearly dubious statements. Let's see if Exxon officials permit the NSA to bug certain meetings on resolution of contracts. Established habits are hard to break.

The aggressive efforts in the past few years to drill the waters off Crimea was part of a wider campaign to explore for oil & gas in the Black Sea, where fewer than 100 wells have been drilled, according to data compiled by Bloomberg. For an adequate comparison, note that over 7000 such drill sites exist in the North Sea. The Black Sea is a relatively virgin region. As soon as Putin has more formal political and military control of this sea region, he will assert his ownership over these assets and bring them under the Rosneft and Gazprom tent. That is the Jackass expectation. Perhaps a compromise can come with more joint ventures with Russian firms Rosneft and Gazprom. See the Bloomberg article (CLICK HERE) and the Dallas News article (CLICK HERE).

## THANKS

Thanks to the following for charts StockCharts, Financial Times, UK Independent, Wall Street Journal, Zero Hedge, Business Insider, Calculated Risk, Shadow Govt Statistics, Market Watch, and more.