IMF who? Lagarde shows ECB is the top dollar job in QE age

July 17, 2019

by Ramin Mazaheri for the Saker blog (cross-posted with PressTV by permission)

IMF who? Lagarde shows ECB is the top dollar job in QE age

(Ramin Mazaheri is the chief correspondent in Paris for Press TV and has lived in France since 2009. He has been a daily newspaper reporter in the US, and has reported from Iran, Cuba, Egypt, Tunisia, South Korea, and elsewhere. He is the author of “I’ll Ruin Everything You Are: Ending Western Propaganda on Red China.”)

Christine Lagarde just quit her top post at the International Monetary Fund in order to run the European Central Bank. This shows just far the euro has come (and central bankers), and represents either a historic step backwards or a leap of faith forward in the fight against the global domination of the US dollar.

The dollar’s dominance is what allows Washington to impose murderous, illegal sanctions on countries like Iran, Cuba, Korea and elsewhere, which is why many are so keen to end it.

The dollar’s imposition began after World War II, when the war-ravaged powers were forced to accept equating US paper with (but actually above) gold, a move which Charles de Gaulle bitterly referred to as the “exorbitant privilege” of the United States. The logic is simple: a $100 dollar bill cost Washington only the price of a piece of paper, whereas everyone else still had to mine, barter, earn or steal $100 worth of gold (or its equivalent in goods) to acquire that banknote.

The expensive US failure in Vietnam caused Richard Nixon to end this policy in 1971, but QE – printing money out of thin air – was opposed back then, so a replacement tool had to be quickly found in order to maintain US empire. The solution to effectively maintain the Bretton Woods system was found with the petrodollar” agreement of 1973: every barrel of Saudi oil sold to anyone had to be purchased in dollars, and surplus Saudi profit would be invested in US banks and in US debt securities (“petrodollar recycling”, per Henry Kissinger).

Washington had no qualms about propping up the ruthless, reactionary House of Saud to maintain US economic hegemony. The system expanded to other oil producers to the point where: no dollars? No oil.

The petrodollar keeps money flowing into the US and allows the US to “print gold” – it finances their huge budget deficits, high demand for the dollar fights off their inflation, it gives their banks a source of income for which they do zero genuine work, and the US themselves can buy “as much oil as they can print” from the Saudis. This is obviously a tremendous bargain for the US – the only reason the Saudis accept it is because they know they have absolutely zero legitimacy and would be deposed instantly without US arms and military support.

But the great deal is only for some in the US, as they are rabid neoliberal capitalists: from 1980 onwards the US elite funnelled these huge monies into Wall Street and other asset classes which only their fellow elite can touch, as opposed to intelligently and patriotically using the income to improve the overall conditions of their own nation, or even just raising wages (neoliberals call these concepts “socialism”).

Pick your poison: the US or the IMF?

The IMF, which is always led by a European, has long-pushed something to end this scam that weakens everyone for the US’ benefit, via the concept of the SDR (special drawing rights): a basket of international currencies which could replace the dollar as the world’s backing currency. Who needs the Fed when the SDR can provide international liquidity and financial stability? It wasn’t a great system, but it was closer to the IMF’s original aim of having an international monetary system, instead of the current US empire system of (petrodollar) tribute, which is no different from the Roman era.

The Great Recession pushed the superiority of the SDR to the fore – in 2009 China publicly supported, for the first time, that an international reserve currency be based on the SDR and be run by the IMF. The immorality and business failures of US bankers caused the Great Recession – it was only logical that the Americans lose their banking primacy.

The IMF was thus poised to become top banker, and one of their own was even about to be democratically elected.

In 2011 then-current IMF chief Dominique Strauss-Kahn, a major backer of the SDR basket, was outpolling Nicolas Sarkozy 2 to 1 to head the world’s 5th-largest economy and the neo-imperialist master of North and West Africa. He was certain to win, but on American soil he was accused of attempted rape of a hotel maid, dooming his presidency. The charges were dropped, but Strauss-Kahn admitted the liaison. People screamed “conspiracy” – I always found it highly coincidental that Strauss-Kahn found a maid whose native language was French in a country where seemingly all the cleaning women are Latinas? Conspiracy theorists assumed Sarkozy was behind it, with few noting how the IMF, the SDR and Strauss-Kahn threatened US economic hegemony.

QE means the US’ 1% never have to pay for their crimes

The US pushed back the IMF with one arm while the other arranged the current global financial regime – Quantitative Easing.

QE has been a total failure for the average person worldwide, but nowhere more so than in Europe. Incredibly, 1.5 years after it became official, PressTV and I remain one of the very few people to write about the statistical reality of Europe’s “Lost Decade”. I saw it happening in painful slow-motion, being PressTV’s chief correspondent in Paris.

The reason the Mainstream Media doesn’t want to talk about the failure of QE to provide broad economic growth is because their pro-capitalist media are owned by the same billionaires who get all the profit from QE.

The printing of trillions of paper money (which are certainly not backed by trillions in newly-mined gold) has, just like the oil-produced fruits of the petrodollar, gone to remake the same asset bubbles which sparked the Great Recession.

Once again, only the wealthy are profiting from shady capitalist practices: Housing Bubble II, new stock market records despite the endemic failure of the “real-economy” (evidenced by the Lost Decade), and absurd records in the prices of absurd luxury goods like MBS’ purchase of a da Vinci painting – this has all been paid for by the neoliberal-neoimperialist policy of QE which has failed the average Western citizen and continued the economic misery of the developing world.

But QE has proven one thing: governments are the most powerful forces in society, not bankers. This is something which socialist-inspired democracies are based on, but which only the 1% appear to take advantage of in Western liberal democracies.

Lagarde moving from the IMF to ECB would have been thought of as a step down pre-QE, mainly because nobody imagined that the head of the ECB could create several trillions of dollars simply by tapping a keyboard, as her predecessor Mario Draghi did. The IMF has a lot of money, but they do not have the power to create money.

Lagarde: More bad news for Europe’s 99%

When Lagarde was announced as the new head of the ECB the Western mainstream media provided – of course – none of this background, nor any perspective which fairly criticises the record of neoliberal thought and practice. Instead, their leading media justified Lagarde on one criterion – gender. The New York Times’ article was, “In Tense Times, ‘Call in the Woman’: Lagarde Will Lead the E.C.B”.

The Times championed Lagarde’s own claim that she deserved the job because she was not a male: “As I have said many times, if it had been Lehman Sisters rather than Lehman Brothers, the world might well look a lot different today.”

Such a claim is preposterous and shows how little Lagarde understands the principles and practices of neoliberal economics. However, everyone can quickly see that it also denies the existence of empresses, queens, Thatchers and Clintons; it also denies that women have played any role in shaping the positive and negative aspects of our modern world; it is a justification entirely based on divisive, distracting “identity politics” instead of a class-based true feminism.

Certainly, nobody would claim that simply being a male would be all that is necessary to head the ECB. And yet, such nonsense is all it takes in 2019 – we must all cheer simply because the new boss is female. This is what works with the average American today.

But the ECB is not American – why Lagarde?

The Times repeated the same misleading claim – that Lagarde is an “antitrust lawyer by training” : she worked for the world’s biggest law firm, based in Chicago (the Qom of neoliberal capitalist thought), meaning that she likely worked to manipulate the law in order to maintain trusts, not to dismantle trusts. The Times was forced to acknowledge that she has no experience as a central banker and will thus have a “steep learning curve”.

The West continues to put people in power based on the most absurd pretences of qualification for public service, even when such posts are unelected.

Investopedia had the same assessment as The Times: “However, the absence of an economics background or a discernible opinion on monetary policy means she would have to rely on financial technocrats a fair amount. Lagarde, who says she faced sexism and discrimination in her professional life….”

Lagarde clearly does not have the background required – just like The Times, Investopedia ignores this to assert her “gender qualifications”.

Pity the poor European Mainstream Media reader: Largarde is only a shiny tool whose ascension will do nothing but put an unqualified person in charge of the QE money-printing scheme. She will obviously kowtow to “technocrats” who insist that QE will eventually, one day stop creating Lost Decades.

Lagarde thus got the job not her qualifications but her ideology: it is not Islamic, nor socialist, nor moral – she believes in phony technocratism, because for Lagarde and her ilk “technocrats” are synonymous with “the 1%”. I know Lagarde well from covering the Tapie Affair in France: she was found guilty of negligence and misuse of public funds in a case where she got Sarkozy’s friend Bernard Tapie a hugely controversial 400-million euro payout from the French public coffers.

She only doesn’t have a criminal record and didn’t go to jail, which would seemingly have disqualified her for the ECB Post because…because Frances judicial system is not independent but totally corrupted by 1% influence – the judge simply decided to let her go scot-free, despite her guilt.

Negligence, misuse of public funds, payouts for millionaires – now we understand why Lagarde is considered to be “qualified” to run the ECB, and their QE scam, and to continue the phony “the 99% must work their nation out of debt” justification for austerity policies. More “Western-style leadership”…..

The leap of faith forward I mentioned at the start is this: the ECB runs the world’s largest macro-economy – it is possible they could decouple themselves from the dollar’s decades of exorbitant privilege, and the Chicago school of (neoliberal) capitalism, and start pursuing policies which do not flood the 1% with cheap credit to buy cheaply the lives of people across Europe.

However, the legal structures of the EU and the Eurozone are written in post-1989 language which is even more typically American than what underpins the system of the US itself. Therefore we can have little basis for faith that the cabal of bankers and public-into-private national finance minsters which is the Eurogroup, which runs the Eurozone with zero democratic accountability or even transparency, is going to start caring about the 99% in any of their respective nations.

The selection of the French Lagarde illustrate that Europe is no longer sovereign, but content to be a tool of US economic hegemony.

The BRICS countries hold out hopes for ending the petrodollar-fuelled US global finance domination, but they have effectively lost Brazil via the US-orchestrated coup against Dilma Roussef, and they have foolishly not offered to make it BRIICS, with the second ‘I’ standing for Iran. No need, really: China, Russia and Iran continue to make the most headway against the dollar, via the Belt and Road Initiative but especially the unstoppable petroyuan.

Cryptocurrency is another unstoppable way for countries to oppose US control over the global financial system, which is why The New York Times and the US treasury secretary just screamed, “Cryptocurrencies Pose National Security Threat, Mnuchin Says”. Cryptocurrency was indeed created in order to end the US petrodollar and QE schemes, which is why they are so wonderful and why they must be supported.

Lagarde leaving the IMF for the ECB is definitely a historic shift in the (Western) priority rankings. It is simply tragic for the West’s billion of innocents that unaccountable, unelected central bankers and their ineffective, corrupt cronies have become their political elite. This, of course, has equally lamentable consequences for those nations suffering under neoimperialism, illegal sanctions and other Washington-based policies.

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Russia-India-China share a room with a view

July 01, 2019

by Pepe Escobar : Posted with permission

Russia-India-China share a room with a view

The most important trilateral at the G20 in Osaka was confined to a shoddy environment unworthy of Japan’s unrivaled aesthetic minimalism.

Japan excels in perfect planning and execution. So it’s hard to take this setup as an unfortunate “accident.” At least the – unofficial – Russia-India-China summit at the sidelines of the G20 transcended the fate of an interior decorator deserving to commit seppuku.

Leaders of these three countries met in virtual secrecy. The very few media representatives present in the shabby room were soon invited to leave. Presidents Putin, Xi and Modi were flanked by streamlined teams who barely found enough space to sit down. There were no leaks. Cynics would rather joke that the room may have been bugged anyway. After all, Xi is able to call Putin and Modi to Beijing anytime he wants to discuss serious business.

New Delhi is spinning that Modi took the initiative to meet in Osaka. That’s not exactly the case. Osaka is a culmination of a long process led by Xi and Putin to seduce Modi into a serious Eurasia integration triangular road map, consolidated at their previous meeting last month at the Shanghai Cooperation Organization (SCO) summit in Bishkek.

Now Russia-India-China (RIC) is fully back in business; the next meeting is set for the Eastern Economic Forum in Vladivostok in September.

In their introductory remarks, Putin, Xi and Modi made it clear that RIC is all about configuring, in Putin’s words, an “indivisible security architecture” for Eurasia.

Modi – very much in a Macron vein – stressed the multilateral effort to fight climate change, and complained that the global economy is being ruled by a “one-sided” dictate, emphasizing the necessity of a reform of the World Trade Organization.

Putin went a step ahead, insisting, “our countries are in favor of preserving the system of international relations, whose core is the UN Charter and the rule of law. We uphold such important principles of interstate relations as respect for sovereignty and non-interference in domestic affairs.”

Putin clearly underlined the geopolitical interconnection of the UN, BRICS, SCO and G20, plus “strengthening the authority of the WTO” and the International Monetary Fund as the “paragon of a modern and just multipolar world that denies sanctions as legitimate actions.”

The Russia-India-China contrast with the Trump administration could not be starker.

Those ‘tremendous assets’

BRICS, as it stands, is dead. There was an “official,” pro-forma BRICS meeting before the RIC. But it’s no secret both Putin and Xi completely distrust Brazil’s Jair Bolsonaro, regarded as a Trump neocolonial asset.

Ahead of his bilateral with Trump, Bolsonaro peddled Brazil’s mineral wealth, claiming the country may now export “niobium trinkets.”

Well, that’s certainly less controversial than the Brazilian military sherpa arrested in Spain for carrying industrial quantities of cocaine (36kg) in the presidential plane, definitely ruining the after-hours party time in Osaka.

Later on, Trump eagerly praised Brazil’s “tremendous assets,” now being fully privatized to the benefit of US companies.

Xi, as he addressed the BRICS meeting, denounced protectionism and called for a stronger WTO. BRICS nations, he said, should “increase our resilience and capability to cope with external risks.”

Putin went one up. Apart from denouncing protectionist tendencies in global trade, he called for bilateral trade in national currencies bypassing the US dollar – mirroring a commitment by the Russia-China strategic partnership.

Russia-China, via Finance Minister Anton Siluanov and head of the People’s Bank of China, Yi Gang, have signed an agreement to switch to rubles and yuan in bilateral trade, starting with energy and agriculture, and increase cross-currency settlements by 50% in the next few years.

There will be a concerted effort to increasingly bypass SWIFT, using the Russian System for Transfer of Financial Messages (SPFS) and the Chinese Cross-Border Inter-Bank Payments System (CIPS).

Sooner or later Russia-China will entice India to join. Moscow has excellent bilateral relations with both Beijing and New Delhi, and is decisively playing the role of privileged messenger.

The mini-trade war against New Delhi launched by the Trump administration – including the loss of India’s special trade status and punishment for buying Russian S-400 missile systems – is quickening the pace of the process. India, by the way, will pay for the S-400s in euros.

There were no leaks whatsoever from Russia-India-China about Iran. But diplomats say that was a key theme of the discussion. Russia is already – covertly – helping Iran on myriad levels. India has an existential choice to make: keep buying Iranian oil or say goodbye to Iran’s strategic help, via the Chabahar port, to facilitate India’s mini-Silk Road to Afghanistan and Central Asia.

China sees Iran as a key node of the New Silk Roads, or Belt and Road Initiative. Russia sees Iran as essential for strategic stability in Southwest Asia – a key theme of the Putin-Trump bilateral, which also discussed Syria and Ukraine.

The leaders of RIC – Russian President Vladimir Putin, Indian Prime Minister Narendra Modi and Chinese President Xi Jinping – hold a meeting on the sidelines of the G20 summit in Osaka on June 28, 2019. Photo: Mikhail Klimentyev / Sputnik / AFP

The leaders of RIC – Russian President Vladimir Putin, Indian Prime Minister Narendra Modi and Chinese President Xi Jinping – hold a meeting on the sidelines of the G20 summit in Osaka on June 28, 2019. Photo: Mikhail Klimentyev / Sputnik / AFP

RIC or Belt and Road?

Whatever the psyops tactics employed by Trump, Russia-India-China is also directly implicated in the massive short and long-term ramifications of the Trump-Xi bilateral in Osaka. The Big Picture is not going to change; the Trump administration is betting on re-routing global supply chains out of China, while Beijing advances full speed ahead with its Belt and Road Initiative.

Trump is heavily distrusted across Europe – as Brussels knows the EU is the target of another imminent trade war. Meanwhile, with over 60 nations committed to myriad Belt and Road projects, and with the Eurasia Economic Union also interlinked with Belt and Road, Beijing knows it’s just a matter of time before the whole of the EU hits the BRI highway.

There’s no evidence that India may suddenly join Belt and Road projects. The geopolitical lure of “Indo-Pacific” – essentially just another strategy for containment of China – looms large. That’s good old imperial Divide and Rule – and all the major players know it.

Yet India, now on the record, is starting to spin that Indo-Pacific is not “against somebody.” India getting deeper into RIC does not imply getting closer to Belt and Road.

It’s time for Modi to rise to the occasion; ultimately, he will decide which way the geoeconomic pendulum swings.

Russia-India-China will be the big G20 hit

June 27, 2019

It all started with the Vladimir Putin–Xi Jinping summit in Moscow on June 5. Far from a mere bilateral, this meeting upgraded the Eurasian integration process to another level. The Russian and Chinese presidents discussed everything from the progressive interconnection of the New Silk Roads with the Eurasia Economic Union, especially in and around Central Asia, to their concerted strategy for the Korean Peninsula.

Russian President Vladimir Putin and Indian Prime Minister Narendra Modi (left) hug during their meeting before a session of the Heads of State Council of the Shanghai Cooperation Organization (SCO), in Bishkek, Kyrgyzstan. Photo: AFP / Grigory Sysoev / Sputnik

A particular theme stood out: They discussed how the connecting role of Persia in the Ancient Silk Road is about to be replicated by Iran in the New Silk Roads, or Belt and Road Initiative (BRI). And that is non-negotiable. Especially after the Russia-China strategic partnership, less than a month before the Moscow summit, offered explicit support for Tehran signaling that regime change simply won’t be accepted, diplomatic sources say.

Putin and Xi solidified the roadmap at the St Petersburg Economic Forum. And the Greater Eurasia interconnection continued to be woven immediately after at the Shanghai Cooperation Organization (SCO) summit in Bishkek, with two essential interlocutors: India, a fellow BRICS (Brazil, Russia, India, China, South Africa) and SCO member, and SCO observer Iran.

At the SCO summit we had Putin, Xi, Narendra Modi, Imran Khan and Iranian President Hassan Rouhani sitting at the same table. Hanging over the proceedings, like concentric Damocles swords, were the US-China trade war, sanctions on Russia, and the explosive situation in the Persian Gulf.

Rouhani was forceful – and played his cards masterfully – as he described the mechanism and effects of the US economic blockade on Iran, which led Modi and leaders of the Central Asian “stans” to pay closer attention to Russia-China’s Eurasia roadmap. This occurred as Xi made clear that Chinese investments across Central Asia on myriad BRI projects will be significantly increased.

Russia-China diplomatically interpreted what happened in Bishkek as “vital for the reshaping of the world order.” Crucially, RIC – Russia-India-China – not only held a trilateral but also scheduled a replay at the upcoming Group of Twenty summit in Osaka. Diplomats swear the personal chemistry of Putin, Xi and Modi worked wonders.

The RIC format goes back to old strategic Orientalist fox Yevgeny Primakov in the late 1990s. It should be interpreted as the foundation stone of 21st-century multipolarity, and there’s no question how it will be interpreted in Washington.

India, an essential cog in the Indo-Pacific strategy, has been getting cozy with “existential threats” Russia-China, that “peer competitor” – dreaded since geopolitics/geo-strategy founding father Halford Mackinder published his “Geographical Pivot of History” in 1904 –  finally emerging in Eurasia.

RIC was also the basis on which the BRICS grouping was set up. Moscow and Beijing are diplomatically refraining from pronouncing that. But with Brazil’s Jair Bolsonaro seen as a mere Trump administration tool, it’s no wonder that Brazil has been excluded from the RIC summit in Osaka. There will be a perfunctory BRICS meeting right before the start of the G20 on Friday, but the real deal is RIC.

Pay attention to the go-between

The internal triangulation of RIC is extremely complex. For instance, at the SCO summit Modi said that India could only support connectivity projects based on “respect of sovereignty” and “regional integrity.” That was code for snubbing the Belt and Roads Initiative – especially because of the flagship China-Pakistan Economic Corridor, which New Delhi insists illegally crosses Kashmir. Yet India did not block the final Bishkek declaration.

What matters is that the Xi-Modi bilateral at the SCO was so auspicious that Indian Foreign Secretary Vijay Gokhale was led to describe it as “the beginning of a process, after the formation of government in India, to now deal with India-China relations from both sides in a larger context of the 21st century and of our role in the Asia-Pacific region.” There will be an informal Xi-Modi summit in India in October. And they meet again at the BRICS summit in Brazil in November.

Putin has excelled as a go-between. He invited Modi to be the guest of honor at the Eastern Economic Forum in Vladivostok in early September. The thrust of the relationship is to show to Modi the benefits for India to actively join the larger Eurasia integration process instead of playing a supporting role in a Made in USA production.

That may even include a trilateral partnership to develop the Polar Silk Road in the Arctic, which represents, in a nutshell, the meeting of the Belt and Road Initiative with Russia’s Northern Sea Route. China Ocean Shipping (Cosco) is already a partner of the Russian company PAO Sovcomflot, shipping natural gas both east and west from Siberia.

Xi is also beginning to get Modi’s attention on the restarting possibilities for the Bangladesh-China-India-Myanmar (BCMI) corridor, another major Belt and Road project, as well as improving connectivity from Tibet to Nepal and India.

Impediments, of course, remain plentiful, from disputed Himalayan borders to, for instance, the slow-moving Regional Comprehensive Economic Partnership (RCEP) – the 16-nation theoretical successor of the defunct Trans-Pacific Partnership. Beijing is adamant the RCEP must go into overdrive, and is even prepared to leave New Delhi behind.

One of Modi’s key decisions ahead is on whether to keep importing Iranian oil – considering there are no more US sanctions waivers. Russia is ready to help Iran and weary Asian customers such as India if the EU-3 continue to drag the implementation of their special payment vehicle.

India is a top Iran energy customer. Iran’s port of Chabahar is absolutely essential if India’s mini-Silk Road is to reach Central Asia via Afghanistan. With US President Donald Trump’s administration sanctioning New Delhi over its drive to buy the Russian S-400 air defense system and the loss of preferred trade status with the US, getting closer to Bridge and Road – featuring energy supplier Iran as a key vector – becomes a not-to-be-missed economic opportunity.

With the roadmap ahead for the Russia-China strategic partnership fully solidified after the summits in Moscow, St Petersburg and Bishkek, the emphasis now for RC is to bring India on board a full-fledged RIC. Russia-India is already blossoming as a strategic partnership. And Xi-Modi seemed to be in sync. Osaka may be the geopolitical turning point consolidating RIC for good.

Brazilgate is Turning into Russiagate 2.0

June 22, 2019

By Pepe Escobar – with permission and cross-posted with Consortium News

Brazilgate is Turning into Russiagate 2.0

It was a leak, not a hack. Yes: Brazilgate, unleashed by a series of game-changing bombshells published by The Intercept, may be turning into a tropical Russiagate.

The Intercept’s Deep Throat – an anonymous source — has finally revealed in detail what anyone with half a brain in Brazil already knew: that the judicial/lawfare machinery of the one-sided Car Wash anti-corruption investigation was in fact a massive farce and criminal racket bent on accomplishing four objectives.

  • Create the conditions for the impeachment of President Dilma Rousseff in 2016 and the subsequent ascension of her VP, elite-manipulated puppet, Michel Temer.
  •  Justify the imprisonment of former president Lula in 2018 – just as he was set to win the latest presidential election in a landslide.
  • Facilitate the ascension of the Brazilian extreme-right via Steve Bannon asset (he calls him “Captain”) Jair Bolsonaro.
  • Install former judge Sergio Moro as a justice minister on steroids capable of enacting a sort of Brazilian Patriot Act – heavy on espionage and light on civil liberties.

Moro, side by side with prosecutor Deltan Dallagnol, who was leading the Public Ministry’s 13-strong task force, are the vigilante stars of the lawfare racket. Over the past four years, hyper-concentrated Brazilian mainstream media, floundering in a swamp of fake news, duly glorified these two as Captain Marvel-worthy national heroes. Hubris finally caught up with the swamp.

The Brazilian Goodfellas

The Intercept has promised to release all the files in its possession; chats, audio, videos and pics, a treasure trove allegedly larger than Snowden’s. What has been published so far reveals Moro/Dallagnol as a strategic duo in synch, with Moro as a capo di tutti i capi, judge, jury and executioner rolled into one – replete with serial fabrications of evidence. This, in itself, is enough to nullify all the Car Wash cases in which he was involved – including Lula’s prosecution and successive convictions based on “evidence” that would never hold up in a serious court.

Moro: Installed as justice minister.
(Wikipedia/Marcos Oliveira/Agência Senado.)

In conjunction with a wealth of gory details, the Twin Peaks principle — the owls are not what they seem — fully applies to Brazilgate. Because the genesis of Car Wash involves none other than the United States government (USG). And not only the Department of Justice (DoJ) – as Lula has been stressing for years in every one of his interviews. The op was Deep State at its lowest.

WikiLeaks had already revealed it from the start, when the NSA started spying on energy giant Petrobras and even Rousseff’s smart phone. In parallel, countless nations and individuals have learned how the DoJ’s self-attributed extraterritoriality allows it to go after anyone, anyhow, anywhere.

It has never been about anti-corruption. Instead this is American “justice” interfering in the full geopolitical and geo-economic spheres. The most glaring, recent case, is Huawei’s.

Yet Mafiosi Moro/Dallagnol’s “malign behavior” (to invoke Pentagonese) reached a perverse new level in destroying the national economy of a powerful emerging nation, a BRICS member and acknowledged leader across the Global South.

Car Wash ravaged the chain of energy production in Brazil, which in turn generated the sale – below market prizes – of plenty of valuable pre-salt oil reserves, the biggest oil discovery of the 21stcentury.

Car Wash destroyed Brazilian national champions in engineering and civil construction as well as aeronautics (as in Boeing buying Embraer). And Car Wash fatally compromised important national security projects such as the construction of nuclear submarines, essential for the protection of the “Blue Amazon”.

For the Council of Americas – which Bolsonaro visited back in 2017 – as well as the Council on Foreign Relations—not to mention the “foreign investors”–to have neoliberal Chicago boy Paulo Guedes installed as finance minister was a wet dream. Guedes promised on the record to virtually put all of Brazil for sale. So far, his stint has been an unmitigated failure.

How to Wag the Dog

Mafiosi Moro/Dallagnol were “only a pawn in their game,” to quote Bob Dylan– a game both were oblivious to.

Lula has repeatedly stressed that the key question – for Brazil and the Global South – is sovereignty. Under Bolsonaro, Brazil has been reduced to the status of a banana neo-colony – with plenty of bananas. Leonardo Attuch, editor of the leading portal Brasil247, says “the plan was to destroy Lula, but what was destroyed was the nation.”

As it stands, the BRICS – a very dirty word in the Beltway – have lost their “B”. As much as they may treasure Brazil in Beijing and Moscow, what is delivering for the moment is the “RC” strategic partnership, although Putin and Xi are also doing their best to revive “RIC”, trying to show India’s Modi that Eurasian integration is the way to go, not playing a supporting role in Washington’s fuzzy Indo-Pacific strategy.

Dallagnol: Serial fabricator. (Wikimedia Commons/José Cruz/Agência Brasil)

And that brings us to the heart of the Brazilgate matter: how Brazil is the coveted prize in the master strategic narrative that conditions everything happening in the geopolitical chessboard for the foreseeable future—the no-holds-barred confrontation between the U.S. and Russia-China.

Already in the Obama era, the U.S. Deep State had identified that to cripple BRICS from the inside, the “weak” strategic node was Brazil. And yes; once again it’s the oil, stupid.

Brazil’s pre-salt oil reserves may be worth as much as a staggering $30 trillion. The point is not only that the USG wants a piece of the action; the point is how controlling most of Brazil’s oil ties up with interfering with powerful agribusiness interests. For the Deep State, control of Brazil’s oil flow to agribusiness equals containment/leverage against China.

The U.S., Brazil and Argentina, together, produce 82 percent of the world’s soybeans – and counting. China craves soybeans. These won’t come from Russia or Iran – which on the other hand may supply China with enough oil and natural gas (see, for instance, Power of Siberia I and II). Iran, after all, is one of the pillars of Eurasian integration. Russia may eventually become a soybean export power, but that may take as long as ten years.

The Brazilian military knows that close relations with China – their top trade partner, ahead of the U.S. — are essential, whatever Steve Bannon may rant about. But Russia is a completely different story. Vice-President Hamilton Mourao, in his recent visit to Beijing, where he met with Xi Jinping, sounded like he was reading from a Pentagon press release, telling Brazilian media that Russia is a “malign actor” deploying “hybrid war around the world.”

So the U.S. Deep State may be accomplishing at least part of the ultimate goal: to use Brazil in its Divide et Impera strategy of splitting the Russia-China strategic partnership.

It gets much spicier. Car Wash reconditioned as Leak Wash could also be decoded as a massive shadow play; a wag the dog, with the tail composed of two American assets.

Moro was a certified FBI, CIA, DoJ, Deep State asset. His uber-boss would ultimately be Robert Mueller (thus Russiagate). Yet for Team Trump, he would be easily expendable – even if he’s Captain Justice working under the real asset, Bannon boy Bolsonaro. If he falls, Moro would be assured the requisite golden parachute – complete with U.S. residency and talks in American universities.

The Intercept’s Greenwald is now celebrated by all strands of the Left as a sort of American/Brazilian Simon Bolivar on steroids – with and in may cases without any irony. Yet there’s a huge problem. The Intercept is owned by hardcore information-war practitioner Pierre Omidyar.

Whose Hybrid War?

The crucial question ahead is what the Brazilian military are really up to in this epic swamp – and how deep they are subordinated to Washington’s Divide et Impera.

It revolves around the all-powerful Cabinet of Institutional Security, known in Brazil by its acronym GSI. GSI stalwarts are all Washington consensus. After the “communist” Lula/Dilma years, these guys are now consolidating a Brazilian Deep State overseeing full spectrum political control, just like in the U.S..

GSI already controls the whole intel apparatus, as well as Foreign Policy and Defense, via a decree surreptitiously released in early June, only a few days before The Intercept’s bombshell. Even Captain Marvel Moro is subjected to the GSI; they must approve, for instance, everything Moro discusses with the DoJ and the U.S. Deep State.

As I’ve discussed with some of my top informed Brazilian interlocutors, crack anthropologist Piero Leirner, who knows in detail how the military think, and Swiss-based international lawyer and UN adviser Romulus Maya, the U.S. Deep Stateseems to be positioning itself as the spawning mechanism for the direct ascension of the Brazilian military to power, as well as their guarantors. As in, if you don’t follow our script to the letter – basic trade relations only with China; and isolation of Russia – we can swing the pendulum anytime.

After all, the only practical role the USG would see for the Brazilian military – in fact for all Latin America military – is as “war on drugs” shock troops.

 

Intercept Exclusive: Brazilian Judge in Car Wash Corruption Case Mocked Lula’s Defense and Secretly Directed Prosecutors’ Media Strategy During Trial.

There is no smoking gun – yet. But the scenario of Leak Wash as part of an extremely sophisticated, full spectrum dominance psyops, an advanced stage of Hybrid War, must be seriously considered.

For instance, the extreme-right, as well as powerful military sectors and the Globo media empire suddenly started spinning that The Intercept bombshell is a “Russian conspiracy.”

When one follows the premier military think tank website– featuring loads of stuff virtually copy and pasted straight from the U.S. Naval War College – it’s easy to be startled at how they fervently believe in a Russia-China Hybrid War against Brazil, where the beachhead is provided by “anti-national elements” such as the Left as a whole, Venezuelan Bolivarians, FARC, Hezbollah, LGBT, indigenous peoples, you name it.

After Leak Wash, a concerted fake news blitzkrieg blamed the Telegram app (“they are evil Russians!”) for hacking Moro and Dallagnol’s phones. Telegram officially debunked it in no time.

Then it surfaced that former president Dilma Rousseff and the current Workers’ Party president Gleisi Hoffmann paid a “secret” visit to Moscow only five days before the Leak Wash bombshell. I confirmed the visit with the Duma, as well as the fact that for the Kremlin, Brazil, at least for the moment, is not a priority. Eurasian integration is. That in itself debunks what the extreme-right in Brazil would spin as Dilma asking for Putin’s help, who then released his evil hackers.

Leak Wash – Car Wash’s season two – may be following the Netflix and HBO pattern. Remember that season three of True Detective was an absolute smash. We need Mahershala Ali-worthy trackers to sniff out patches of evidence suggesting the Brazilian military – with the full support of the U.S. Deep State – might be instrumentalizing a mix of Leak Wash and “the Russians” Hybrid War to criminalize the Left for good and orchestrate a silent coup to get rid of the Bolsonaro clan and their sub-zoology collective IQ. They want total control – no clownish intermediaries. Will they be biting more bananas than they can chew?

The head of the Russian GRU reveals US plans against Venezuela (MUST SEE!)

The head of the Russian GRU reveals US plans against Venezuela (MUST SEE!)

May 02, 2019

The U.S. wants to change the government in Venezuela and use Colombia to do that. The head of the Main Intelligence Directorate of the General Staff of the Russian Armed Forces, Vice-Admiral Igor Kostyukov, stated that. He made that statement at the conference on international security. It was held last week in Moscow.

Pepe Escobar: Empire of Chaos in Hybrid War Overdrive

SourcePepe Escobar: Empire of Chaos in Hybrid War Overdrive

March 28, 2019

The Trump administration’s foreign policy may be easily deconstructed as a crossover between The Sopranos and late-night comedy, writes Pepe Escobar.

by Pepe Escobar (cross-posted with Consortium News ) by special agreement with the author)

Is this the Age of Anxiety? The Age of Stupidity? The Age of Hybrid War? Or all of the above?

As right populism learns to use algorithms, artificial intelligence (AI) and media convergence, the Empire of Chaos, in parallel, is unleashing all-out hybrid and semiotic war.

Dick Cheney’s Global War on Terror (GWOT) is back, metastasized as a hybrid mongrel.

But GWOT would not be GWOT without a Wild West scarecrow. Enter Hamza bin Laden, son of Osama. On the same day the State Department announced a $1 million bounty on his head, the so- called “UN Security Council IS and Al-Qaeda Sanctions Committee” declared Hamza the next al-Qaeda leader.

Since January 2017, Hamza has been a Specially Designated Global Terrorist by the State Department – on par with his deceased Dad, back in the early 2000s. The Beltway intel community “believes” Hamza resides “in the Afghanistan-Pakistan region.”

Remember these are the same people who “believed” former Taliban leader Mullah Omar resided in Quetta, Baluchistan, when in fact he was safely ensconced only a few miles away from a massive U.S. military base in Zabul, Afghanistan.

Considering that Jabhat al-Nusra, or al-Qaeda in Syria, for all practical purposes, was defined as no more than “moderate rebels” by the Beltway intel community, it’s safe to infer that new scarecrow Hamza is also a “moderate”. And yet he’s more dangerous than vanished fake Caliph Abu Baqr al-Baghdadi. Talk about a masterful example of culture jamming.

Show Me The Big Picture

A hefty case can be made that the Empire of Chaos currently has no allies; it’s essentially surrounded by an assortment of vassals, puppets and comprador 5thcolumnist elites professing varied degrees of – sometimes reluctant – obedience.

The Trump administration’s foreign policy may be easily deconstructed as a crossover between The Sopranos and late-night comedy – as in the whole episode of designating State Department/CIA regime change, lab experiment Random Dude as President of Venezuela. Legendary cultural critic Walter Benjamin would have called it “the aestheticization of politics,” (turning politics into art), as he did about the Nazis, but this time it’s the Looney Tunes version.

To add to the conceptual confusion, despite countless “an offer you can’t refuse” antics unleashed by psychopaths of the John Bolton and Mike Pompeo variety, there’s this startling nugget. Former Iranian diplomat Amir Moussavi has revealed that Trump himself demanded to visit Tehran, and was duly rebuffed. “Two European states, two Arab countries and one Southeast Asian state” were mediating a series of messages relayed by Trump and his son-in-law Jared “of Arabia” Kushner, according to Moussavi.

Is there a method to this madness? An attempt at a Grand Narrative would go something like this: ISIS/Daesh may have been sidelined – for now; they are not useful anymore, so the U.S. must fight the larger “evil”: Tehran. GWOT has been revived, and though Hamza bin Laden has been designated the new Caliph, GWOT has shifted to Iran.

When we mix this with the recent India-Pakistan scuffle, a wider message emerges. There was absolutely no interest by Prime Minister Imran Kahn, the Pakistani Army and the Pakistani intelligence, ISI, to launch an attack on India in Kashmir. Pakistan was about to run out of money and about to be bolstered by the U.S., via Saudi Arabia with $20 billion and an IMF loan.

At the same time, there were two almost simultaneous terrorist attacks launched from Pakistan – against Iran and against India in mid-February. There’s no smoking gun yet, but these attacks may have been manipulated by a foreign intelligence agency. The Cui Bono riddle is which state would profit immensely from a war between Pakistan and Iran and/or a war between Pakistan and India.

The bottom line: hiding in the shadow of plausible deniability – according to which what we understand as reality is nothing but pure perception – the Empire of Chaos will resort to the chaos of no-holds-barred hybrid war to avoid “losing” the Eurasian heartland.

Show Me How Many Hybrid Plans You Got

What applies to the heartland of course also applies to the backyard.

The case of Venezuela shows that the “all options on the table” scenario has been de facto aborted by Russia, outlined in an astonishing briefing by Maria Zakharova, spokeswoman of the Russian Foreign Ministry, and then subsequently detailed by Russian Foreign Minister Sergey Lavrov.

Lavrov. (Wikimedia Commons)

Meeting with Chinese Foreign Minister Wang Yi and Indian Foreign Minister Sushma Swaraj at a crucial RIC (part of BRICS) summit in China,Lavrov said, “Russia keeps a close eye on brazen US attempts to create an artificial pretext for a military intervention in Venezuela… The actual implementation of these threats is pulling in military equipment and training [US] Special Forces.”

Lavrov explained how Washington was engaged in acquiring mortars and portable air defense systems “in an East European country, and mov(ing) them closer to Venezuela by an airline of a regime that is… rather absolutely obedient to Washington in the post-Soviet space.”

The U.S. attempt at regime change in Venezuela has been so far unsuccessful in several ways. Plan A – a classic color revolution -has miserably failed, in part because of a lack of decent local intelligence. Plan B was a soft version of humanitarian imperialism, with a resuscitation of the nefarious, Libya-tested responsibility to protect (R2P); it also failed, especially when the American tale that the Venezuelan government burnt humanitarian aid trucks at the border with Colombia was a lie, exposed by The New York Times, no less.

Plan C was a classic Hybrid War technique: a cyberattack, replete with a revival of Nitro Zeus, which shut down 80 percent of Venezuela’s electricity.

That plan had already been exposed by WikiLeaks, via a 2010 memo by a U.S.-funded, Belgrade-based color revolution scam that helped train self-proclaimed “President” Random Dude, when he was just known as Juan Guaidó. The leaked memo said that attacking the Venezuelan power grid would be a “watershed event” that “would likely have the impact of galvanizing public unrest in a way that no opposition group could ever hope to generate.”

But even that was not enough.

That leaves Plan D – which is essentially to try to starve the Venezuelan population to death via viciously lethal additional sanctions. Sanctioned Syria and sanctioned Iran didn’t collapse. Even boasting myriad comprador elites aggregated in the Lima group, exceptionalists may have to come to grips with the fact that deploying the Monroe doctrine essentially to contain China’s influence in the young 21stcentury is no “cakewalk.”

Plan E—for extreme—would be U.S. military action, which Bolton won’t take off the table.

Show Me the Way to the Next War Game

So where do all these myriad weaponizations of chaos theory leave us? Nowhere, if they don’t follow the money. Local comprador elites must be lavishly rewarded, otherwise you’re stuck in hybrid swamp territory. That was the case in Brazil – and that’s why the most sophisticated hybrid war case history so far has been a success.

In 2013, Edward Snowden and WikiLeaks revealed how the NSA was spying on Brazilian energy giant Petrobras and the Dilma Rousseff government beginning in 2010. Afterwards, a complex, rolling judicial-business-political-financial-media coup ended up reaching its two main objectives; in 2016, with the impeachment of Rousseff, and in 2018, with Lula thrown in jail.

Now comes arguably the juiciest piece of the puzzle. Petrobras was supposed to pay $853 million to the U.S. Department of Justice for not going to trial for crimes it was being accused of in America. But then a dodgy deal was struck according to which the fine will be transferred to a Brazilian fund as long as Petrobras commits to relay confidential information about its businesses to the United States government.

Mattis: Wrote on hybrid war in 2005.

Hybrid war against BRICS member Brazil worked like a charm, but trying it against nuclear superpower Russia is a completely different ball game. U.S. analysts, in another case of culture jamming, even accuse Russia itself of deploying hybrid war – a concept actually invented in the U.S. within a counter-terrorism context; applied during the occupation of Iraq and later metastasized across the color revolution spectrum; and featuring, among others, in an article co-authored by former Pentagon head James “Mad Dog” Mattis in 2005 when he was a mere lieutenant general.

At a recent conference about Russia’s military strategy, Chief of General Staff Gen. Valery Gerasimov stressed that the Russian armed forces must increase both their “classic” and “asymmetrical” potential. In the U.S. this is interpreted as subversion/propaganda hybrid war techniques as applied in Ukraine and in the largely debunked Russia-gate. Instead, Russian strategists refer to these techniques as “complex approach” and “new generation war”.

Santa Monica’s RAND Corporation still sticks to good ol’ hot war scenarios. They have been holding “Red on Blue” war games simulations since 1952 – modeling how the proverbial “existential threats” could use asymmetric strategies. The latest Red on Blue was not exactly swell. RAND analyst David Ochmanek famously said that with Blue representing the current U.S. military potential and Red representing Russia-China in a conventional war, “Blue gets its ass handed to it.”

None of this will convince Empire of Chaos functionary Gen. Joseph Dunford, chairman of the Joint Chiefs of Staff, who recently told a Senate Armed Services Committee that the Pentagon will continue to refuse a “no first use” nuclear strategy. Aspiring Dr. Strangeloves actually believe the U.S. can start a nuclear war and get away with it.

Talk about the Age of Hybrid Stupidity going out with a bang.

Pepe Escobar, a veteran Brazilian journalist, is the correspondent-at-large for Hong Kong-based Asia Times. His latest book is “2030.” Follow him on Facebook.

‘America First’: A Stronger Monroe Doctrine

‘America First’: A Stronger Monroe Doctrine

FEDERICO PIERACCINI | 07.03.2019 | WORLD / AMERICAS

‘America First’: A Stronger Monroe Doctrine

The previous articles (firstsecond) examined what appears to be a coordinated strategy between Moscow and Beijing to contain the damage wrought by the United States around the world. This strategy’s effectiveness relies heavily on the geographical position of the two countries vis-a-vis the United States and the area of contention. We have seen how the Sino-Russian strategy has been effective in Asia and the Middle-East, greatly stemming American disorder. Moscow and Beijing have less capacity to contain the US and influence events in Europe, given that much depends on the Europeans themselves, who are officially Washington’s allies but are in reality treated as colonies. With the new “America First” doctrine, it is the central and southern parts of the American continent that are on the receiving end of the US struggling to come to terms with the diminishment of its hitherto untrammelled influence in the world.

South and Central American countries blossomed under the reign of socialist or leftist anti-imperialist governments for the first decade of this century. Such terms as “21st-century socialism” were coined, as was documented in the 2010 Oliver Stone documentary film South of the Border. The list of countries with leftist governments was impressive: Fernando Lugo (Paraguay), Evo Morales (Bolivia), Lula da Silva (Brazil), Rafael Correa (Ecuador), Cristina Fernández de Kirchner (Argentina), Fidel Castro (Cuba), Daniel Ortega (Nicaragua) and Hugo Chávez (Venezuela).

We can establish a close correlation between Washington’s actions since 1989 and the political roller-coaster experienced in South America in the ensuing thirty years.

Washington, drunk on the experience of being the only superpower in the post-Soviet period, sought to lock in her commanding position through the establishment of full-spectrum dominance, a strategy that entails being able to deal with any event in any area of ​​the globe, treating the world as Washington’s oyster.

Washington’s endeavor to shape the world in her own image and likeness meant in practical terms the military apparatus increasing its power projection through carrier battle groups and a global missile defense, advancing towards the land and sea borders of Russia and China.

Taking advantage of the US dollar’s dominance in the economic, financial and commercial arenas, Washington cast aside the principles of the free market, leaving other countries to contend with an unfair playing field.

As later revealed by Edward Snowden, Washington exploited her technological dominance to establish a pervasive surveillance system. Guided by the principle of American exceptionalism, combined with a desire to “export democracy”, “human rights” became an enabling justification to intervene in and bomb dozens of countries over three decades, aided and abetted by a compliant and controlled media dominated by the intelligence and military apparatuses.

Central and South America enjoyed an unprecedented political space in the early 2000s as a result of Washington focusing on Russia, China, Iran, Afghanistan, Syria, Iraq, Yugoslavia, Somalia, Georgia and Ukraine. The Latin Americans exploited this breathing space, with a dozen countries becoming outposts of anti-imperialism within a decade, advancing a strong socialist vision in opposition to free-market fundamentalism.

Both Washington and Moscow placed central importance on South America during the Cold War, which was part of the asymmetric and hybrid war that the two superpowers undertook against each other. The determination by the United States to deny the Soviet Union a presence in the American hemisphere had the world holding its collective breath during the Cuban Missile Crisis.

As any student of international relations knows, the first objective of a regional power is to prevent the emergence of another hegemon in any other part of the world. The reason behind this is to obviate the possibility that the new power may venture into other regions occupied by other hegemonic powers, thereby upsetting the status quo. The second primary objective is to prevent access by a foreign power to its own hemisphere. Washington abides by this principle through its Monroe Doctrine, set forth by President James Monroe, with the United States duly expelling the last European powers from the Americas in the early 19th century.

In analyzing the events in South America, one cannot ignore an obvious trend by Washington. While the United States was intent on expanding its empire around the world by consolidating more than 800 military bases in dozens of countries (numbering about 70), South America was experiencing a political rebirth, positioning itself at the opposite end of the spectrum from Washington, favoring socialism over capitalism and reclaiming the ancient anti-imperialist ideals of Simon Bolivar, a South American hero of the late 18th century.

Washington remained uncaring and indifferent to the political changes of South America, focusing instead on dominating the Middle East through bombs and wars. In Asia, the Chinese economy grew at an impressive rate, becoming the factory of the world. The Russian Federation, from the election of Putin in 2000, gradually returned to being a military power that commanded respect. And with the rise of Iran, destined to be the new regional power in the Middle East thanks to the unsuccessful US intervention in Iraq in 2003, Washington began to dig her own grave without even realizing it.

Meanwhile, South America united under the idea of a common market and a socialist ideology. The Mercosur organization was founded in 1991 by Argentina, Brazil, Paraguay and Uruguay. But it was only when Venezuela, led by Chavez, became an associate member in 2004 that the organization assumed a very specific political tone, standing almost in direct opposition to Washington’s free-market template.

Meanwhile, China and Russia continued their political, military and economic growth, focusing with particular attention on South America and the vast possibilities of economic integration from 2010. Frequent meetings were held between Russia and China and various South American leaders, culminating in the creation of the BRICS organization (Brazil, Russia, India, China and South Africa). Brazil, first with Lula and then with Dilma Rousseff, was the unofficial spokesperson for the whole of South America, aligning the continent with the emerging Eurasian powers. It is during these years, from the birth of the BRICS organization (2008/2009), that the world began a profound transformation flowing from Washington’s progressive military decline, consumed as it was by endless wars that ended up eroding Washington’s status as a world power. These wars in Iraq and Afghanistan have deeply undermined US military prestige, opening unprecedented opportunities for alliances and future changes to the global order, especially with the rise of Iran’s influence in the region as a counterweight to US imperialism.

China, Russia and the South American continent were certainly among the first to understand the potential of this political and historical period; we can recall meetings between Putin and Chavez, or the presence of Chinese leaders at numerous events in South America. Beijing has always offered high-level economic assistance through important trade agreements, while Moscow has sold a lot of advanced military hardware to Venezuela and other South American countries.

Economic and military assistance are the real bargaining chips Moscow and Beijing offer to countries willing to transition to the multipolar revolution while having their backs covered at the same time.

The transformation of the world order from a unipolar to a multipolar system became a fact in 2014 with the return of Crimea to the Russian Federation following the NATO coup in Ukraine. The inability for the US to prevent this fundamental strategic defeat for Brussels and Washington marked the beginning of the end for the Pentagon still clinging on to a world order that disappeared in 1991.

As the multipolar mutation developed, Washington changed tactics, with Obama offering a different war strategy to the one advanced during the George W. Bush presidency. Projecting power around the globe with bombs, carrier battle groups and boots on the ground was no longer viable, with domestic populations being in no mood for any further major wars.

The use of soft power has always been part of the US toolkit for influencing events in other countries; but given the windfall of the unipolar moment, soft power was set aside in favor of hard power. However, following the failures of explicit hard power from 1990 to 2010, soft power was back in favor, and organizations like the National Endowment for Democracy (NED) and the International Republican Institute (IRI) set about training and financing organizations in dozens of hostile countries to subvert governments by underhanded means (colour revolutions, the Arab Spring, etc.).

Among those on the receiving end of this soft-power onslaught were the South American countries deemed hostile to Washington, already under capitalist-imperialist pressure for a number of years in the form of sanctions.

It is during this time that South America suffered a side effect of the new multipolar world order. The United States started retreating home after losing influence around the globe. This effectively meant focusing once again on its own backyard: Central and South America.

Covert efforts to subvert governments with socialist ideas in the hemisphere increased. First, Kirchner’s Argentina saw the country pass into the hands of the neoliberal Macri, a friend of Washington. Then Dilma Rousseff was expelled as President of Brazil through the unlawful maneuvers of her own parliament, following which Lula was imprisoned, allowing for Bolsonaro, a fan of Washington, to win the presidential election.

In Ecuador, Lenin Moreno, the successor of Correa, betrayed his party and his people by being a cheerleader for the Pentagon, even protesting the asylum granted to Assange in Ecuador’s embassy in London. In Venezuela following Chavez’s suspicious death, Maduro was immediately targeted by the US establishment as the most prominent representative of an anti-imperialist and anti-American Chavismo. The increase in sanctions and the seizure of assets further worsened the situation in Venezuela, leading to the disaster we are seeing today.

South America finds itself in a peculiar position as a result of the world becoming more multipolar. The rest of the world now has more room to maneuver and greater independence from Washington as a result of the military and economic umbrella offered by Moscow and Beijing respectively.

But for geographic and logistical reasons, it is more difficult for China and Russia to extend the same guarantees and protections to South America as they do in Asia, the Middle East and Europe. We can nevertheless see how Beijing offers an indispensable lifeline to Caracas and other South American countries like Nicaragua and Haiti in order to enable them to withstand Washington’s immense economic pressure.

Beijing’s strategy aims to limit the damage Washington can inflict on the South American continent through Beijing’s economic power, without forgetting the numerous Chinese interests in the region, above all the new canal between the Atlantic and the Pacific that runs through Nicaragua (it is no coincidence that the country bears the banner of anti-imperialist socialism) that will be integrated into the Belt and Road Initiative (BRI). Moscow’s objective is more limited but just as refined and dangerous to Washington’s hegemony. A glimpse of Moscow’s asymmetrical military power was given when two Russian strategic bombers flew to Venezuela less than four months ago, sending an unmistakable signal to Washington. Moscow has the allies and the technical and military capacity to create an air base with nuclear bombers not all that far away from the coast of Florida.

Moscow and Beijing do not intend to allow Washington to mount an eventual armed intervention in Venezuela, which would open the gates of hell for the continent. Moscow and Beijing have few interlocutors left on the continent because of the political positions of several countries like Argentina, Brazil and Colombia, which far prefer an alliance with Washington over one with Moscow or Beijing. We can here see the tendency of the Trump administration to successfully combine its “America First” policy with the economic and military enforcement of the Monroe Doctrine, simultaneously pleasing his base and the hawks in his administration.

Leaving aside a possible strategy (Trump tends to improvise), it seems that Trump’s domestic political battle against the Democrats, declared lovers of socialism (naturally not as strident as the original Soviet or Chavist kind), has combined with a foreign-policy battle against South American countries that have embraced socialism.

The contribution from China and Russia to the survival of the South American continent is limited in comparison to what they have been able to do in countries like Syria, not to mention the deterrence created by Russia in Ukraine in defending the Donbass or with China vis-a-vis North Korea.

The multipolar revolution that is changing the world in which we live in will determine the rest of the century. One of the final battles is being played out in South America, in Venezuela, and its people and the Chavist revolution are at the center of the geopolitical chessboard, as is Syria in the Middle East, Donbass in Central Europe, Iran in the Persian Gulf, and the DPRK in Asia. These countries are at the center of the shift from a unipolar to a multipolar world order, and the success of this shift will be seen if these countries are able to resist US imperialism as a result of Moscow and Beijing respectively offering military help and deterrence and economic survival and alternatives.

Russia and China have all the necessary means to place limits on the United States, protecting the world from a possible thermonuclear war and progressively offering an economic, social and diplomatic umbrella to those countries that want to move away from Washington and enjoy the benefits of living in a multipolar reality, advancing their interests based on their needs and desires and favoring sovereignty and national interest over bending over to please Washington.

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