Jews vs. Israelis

 

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by Gilad Atzmon

 Now would be the correct time for Ali Abunimah, JVP,  & CO to form an orderly queue to issue their deep and sincere apology to me. Since the early 2000s my detractors within the so called Jewish ‘Left’ together with  their sometime stooges, have been harassing me, my publishers and my readers for pointing out that Zionism is an obsolete concept with little meaning for Israel, Israelis  and their politics let alone the conflict that has been destroying the Eastern Mediterranean region

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In my 2011 book The Wandering Who, I argue that “Since Israel defines itself openly as the ‘Jewish State’, we should ask what the notions of ’Judaism’, ‘Jewishness’, ‘Jewish culture’ and ‘Jewish ideology’ stand for.” Just before the publication of the book I was urged by both JVP’s leader and Ali Abunimah to drop the J-Word and focus solely on Zionism. In Britain, a gang of so called ‘anti’ Zionist Jews relentlessly terrorised my publisher and promoters. Funny, most of these authoritarian tribals who worked 24/7 to silence me have been expelled from the British Labour Party for alleged anti-Semitism. Now, they promote the ideal of ‘freedom of speech.’

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In ‘The Wandering Who’ and in the years preceding its publication, I realised that the Palestinian solidarity discourse has been suffocated with misleading and often duplicitous terminology that was set to divert  attention from the root cause of the conflict and that acted  to prevent intelligible discussion of  possible solutions.

Let’s face it. Israel doesn’t see  itself as the Zionist State: not one Israeli party integrated the word ‘Zionism’ into its name. To Israelis, Zionism is a dated and clichéd concept that describes the ideology that promised to erect a Jewish homeland in Palestine. For Israelis, Zionism fulfilled its purpose in 1948, it is now an archaic term. In ‘The Wandering Who’ I presented a so-far unrefuted argument that an understanding of ‘Jewishness’, a term familiar to every self-identified Jew, may provide answers to most questions related to Israel and its politics. It may also help us to grasp the fake dissent that has dominated the so- called Jewish ‘anti’ Zionist campaign for the last two decades.

Though I was probably the first to write about the crucial shift in Israeli society in favour of Judeo-centrism, this shift is now mainstream news.  Haaretz’s lead writer, Anshel Pfeffer, just wrote a spectacular analysis of this transformation. Pfeffer’s view is that Israelis are going to the polls this Tuesday to decide whether they are “Jews” or “Israelis.” 

According to Pfeffer, in the mid 1990s it was Netanyahu’s American campaign guru, Arthur Finkelstein, who promoted  “a message that could reach secular and religious voters alike. In his polling, he had asked voters whether they considered themselves ‘more Jewish’ or ‘more Israeli.’ The results convinced him there was a much larger constituency of voters, not just religious ones, who emphasized their Jewish identity over their Israeli one.”

In light of Finkelstein’s observation, Likud focused its message on Jerusalem. Its campaign slogan was:  “Peres will divide Jerusalem.” In the final 48 hours before Election Day there was also “an unofficial slogan, emblazoned on millions of posters and bumper stickers distributed by Chabad Hasidim: “Netanyahu is good for the Jews.”

In a Haaretz interview after his narrow 1996 defeat, Peres lamented that “the Israelis lost the election.” When asked then who had won, he answered, “The Jews won.”

Pfeffer points out that Netanyahu learned from Finkelstein that the “Jew” is the primary unifier for Israelis. This certainly applies to religious Jews but also to those who regard themselves as secular. After all, Israel has really been the “Jewish State” for a while.

This is probably the right place to point out that Netanyahu’s move of locating Jewishness at the heart of Israel is a reversal of the original Zionist promise. While early Zionism was a desperate attempt to divorce the Jews from the ghetto and their tribal obsession and make them “people like all other people,” the present adherence to Jewishness and kinship induces  a return to Judeo-centric chauvinism. As odd as this may sound, Netanyahu’s transformation of Israel into a ‘Jewish realm’ makes him an ardent anti Zionist probably more anti Zionist than JVP, Mondoweiss and the BDS together.

Pfeffer points out that when Netanyahu returned to power in 2009 and  formed a right-wing/ religious coalition, was when “the Jews prevailed — and have done so ever since in four consecutive elections, including the last one in April 2019.”

To illustrate this Pfeffer cites the 2012 Israeli  High Court of Justice decision to deny a petition by writer Yoram Kaniuk and others to allow themselves to be registered solely as ‘Israelis’ as opposed to ‘Jews.’

Every so often we hear from one Torah rabbi or another that “Zionism is not Judaism.” Those who have reached this point surely grasp that ‘Zionism vs. Judaism’ is a fake dichotomy. It serves to confuse and to divert questioning minds from the path toward an understanding of the conflict: In Israel Zionism is an empty concept, politically, ideologically and spiritually. Israel defines itself as ‘The Jewish state’ and orthodox rabbis are at the centre of this transition in Israeli politics and life.

I guess that Abunimah and JVP were desperate to silence me at the time as they foolishly believed that shooting the messenger or alternatively burning books was the way forward for human rights activism. I stood firm. The observations I produced in ‘The Wandering Who’ were endorsed by the most profound thinkers associated with the conflict and the anti war movement. My observations are more relevant than ever and in Israel they have entered mainstream analysis. When it comes to Palestine solidarity we have managed to waste a good two decades of intellectual progress thanks to authoritarian lobbies operating in our midst. For truth and justice to prevail, we have to learn to speak the truth as we see it, and to accept JVP and Abumimah’s apologies when they are mature enough to come clean.

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Why the Protestors of Hong Kong Are Destroying the Prosperity of Their Country

Image result for Why the Protestors of Hong Kong Are Destroying the Prosperity of Their Country

Martin SIEFF

September 14, 2019

The people of Hong Kong enjoy one of the highest standards of livings of any city across continental Asia. Since peacefully being reabsorbed into mainland China in 1997, they have confounded endless Western Prophets of Doom: These falsely claimed that Beijing would not maintain its solemn undertakings for peace and security in the city and territory. They maintained that Hong Kong’s historic position as one of the great business hubs of Asia and the world would rapidly be destroyed. Nothing of the sort happened.

But the prosperity of Hong Kong for generations to come is danger now – and the threat manifestly does not come from Beijing.

The mass protests for greater democracy and freedom continue. And following a grim dynamic that goes back well over two centuries to the French Revolution they can never be satisfied.

The more that the administration of Hong Kong led by Carrie Lam and the national Chinese government in Beijing seek to avoid the undue use of force and the infliction of casualties, the more violent, the demonstrations slowly and remorselessly become, the broader and more sweeping are their demands for political liberties – though these are invariably vague and ill-defined.

I predict here – simply and clearly – that no matter how many concessions allegedly for liberty are given they will never satisfy the protestors and the Western governments who at the very least are using them as political puppets and pawns. All that can possibly be achieved is to create an atmosphere of fear, insecurity and violence: That is toxic to attract both Foreign Direct Investment (FDI) and also regular investment from the rest of China.

Therefore Hong Kong’s economy will founder, while unemployment and economic suffering will grow. Then, those suffering from it will be encouraged to blame the very government that has sought so long and so hard to prevent disasters from happening.

I speak with a particular authority on these matters: Half a century ago as a teenage Irish boy, I watched the same kind of protests destroy forever the peace and prosperity of one of the most advanced industrial centers on the face of the planet in the city of Belfast.

The lessons I learned then would serve the people of Hong Kong well today before they bring an unimaginable disaster upon themselves.

For popular violent protests against authorities never bring peace: They only bring war – Almost always on a scale that none of the protestors dreamed of when they took to the streets.

Prosperity never follows. At best there is mass unemployment and despair as local businesses and national investment flee the territory for decades and generations. You do not build factories and hire workers for them when the factory will be burned down in one of the endless clashes that will soon follow.

The “freedom” that the protestors demand is illusory. It is fools’ gold: It is the fantasy of wealth at the end of the rainbow that is never found.

Hong Kong’s enormous economic advantage for nearly 180 years under first British and over the past two decades of enlightened Chinese autonomous rule has been that it has been a secure, predictable and safe place to do business with the Mainland and with the wider region.

But that is no longer true: The longer the protests rage and the wider and more serious they become, the more that incalculable advantage is eroded before our eyes.

When I was a young boy, my father on Sunday mornings proudly took me down to the Harland & Woolf Shipyard on Queen’s Island to see some of the biggest moving vehicles in the world – giant cargo vessels, tankers, aircraft carriers and cruise ships – being built.

My father was proud of his son, but he was proud of his city too: Belfast was still the largest ship building center on earth. The great shipyard at its peak employed 35,000 workers. Enormous rivers of humanity would flow back and forth on the bridge over the River Lagan every day as its workers streamed to and from their labors. But for most of the past 50 years, almost all of it has become an industrial wasteland peopled only by ghosts.

Peace finally returned to Northern Ireland after 30 years of civil strife, but it was too late. The great shipyard never recovered and it never revived. What had been done could not be undone.

If these riots continue, that will be the fate of Hong Kong too. Nearly two centuries of growth and prosperity will wither and die.

This is no wild prediction. It is tantamount to a mathematical inevitability: There is a remorseless tidal wave of fate to the pattern of rising political protests that escalate into a violent revolution that can only be contained by the use of military force.

The Civil War in Northern Ireland raged – sometimes horrifically, sometimes more subdued – from 1968 to the landmark Good Friday Agreement of 1998. My old, dear friend, British Secretary of State for Northern Ireland Marjorie “Mo” Mowlam was the key figure driving the negotiations. She undermined her health doing so. Then a host of political parasites from US President Bill Clinton to British Prime Minister Tony Blair were eager to hog all the praise and credit for themselves years later as Mo lay dying from a brain tumor.

The decades that followed the collapse of law and order in Ireland in 1968-1972 were the darkest in the island’s troubled history since the Great Famine of the 1840s. The British government’s record of secret manipulation and involvement in dark excesses and crimes during those years gives London no moral standing today to lecture China on how it handles the unrest in Hong Kong, or anywhere else.

I never expected to see the end of apparently endless war in Ireland in my own lifetime. Thanks to Mo Mowlam’s selfless labors and those of countless other British and Irish figures great and small, peace finally came. The protestors of Hong Kong too now need to take a step back, suck in a deep breath and pause to think long and hard before they charge down that same doomed and awful path.

President Macron’s amazing admission

President Macron’s amazing admission

The Saker

September 11, 2019

[this column was written for the Unz Review]

I don’t know whether the supposedly Chinese curse really comes from China, but whether it does or not, we most certainly are cursed with living in some truly interesting times: Iran won the first phase of the “tanker battle” against the AngloZionistsPutin offered to sell Russian hypersonic missiles to Trump (Putin has been trolling western leaders a lot lately) while Alexander Lukashenko took the extreme measure of completely shutting down the border between the Ukraine and Belarus due to the huge influx of weapons and nationalist extremists from the Ukraine. As he put it himself “if weapons fall into the hands of ordinary people and especially nationalist-minded people, wait for terrorism“. He is quite right, of course. Still, there is a sweet irony here, or call it karma if you prefer, but for the Ukronazis who promised their people a visa-free entrance into the EU (for tourism only, and if you have money to spend, but still…), and yet 5 years into that obscene experiment of creating a rabidly russophobic Ukraine and 100 days (or so) into Zelenskii’s presidency, we have the Ukraine’s closest and most supportive neighbor forced to totally shut down its border due to the truly phenomenal toxicity of the Ukrainian society! But, then again, the Ukraine is such a basket-case that we can count on “most interesting” things (in the sense of the Chinese curse, of course) happening there too.

[Sidebar: interestingly, one of the people the Ukrainians gave up in this exchange was Vladimir Tsemakh, a native of the Donbass who was kidnapped by the Ukie SBU in Novorussia (our noble “Europeans” did not object to such methods!) and declared the “star witness” against Russia in the MH-17 (pseudo-)investigation. Even more pathetic is that the Dutch apparently fully endorsed this load of crapola. Finally, and just for a good laugh, check out how the infamous’ Bellincat presented Tsemakh. And then, suddenly, everybody seem to “forget” that “star witness” and now the Ukies have sent him to Russia. Amazing how fast stuff gets lost in the collective western memory hole…]

Right now there seems to be a tug of war taking place between the more mentally sane elements of the Zelenskii administration and the various nationalist extremists in the SBU, deathsquads and even regular armed forces. Thus we see these apparently contradictory developments taking place: on on hand, the Ukraine finally agreed to a prisoner swap with Russia (a painful one for Russia as Russia mostly traded real criminals, including a least two bona fide Ukie terrorist, against what are mostly civilian hostages, but Putin decided – correctly I think – that freeing Russian nationalists from Ukie jails was more important in this case) while on the other hand, the Ukronazi armed forces increased their shelling, even with 152mm howitzers which fire 50kg high explosive fragmentation shells, against the Donbass. Whatever may be the case, this prisoner swap, no matter how one-sided and unfair, is a positive development which might mark the beginning of a pragmatic and less ideological attitude in Kiev.

Urkoterrorists Sentsov and Kol’chenko

Some very cautious beginnings of a little hint of optimism might be in order following that exchange, but the big stuff seems to be scheduled for the meeting of the Normandy Group (NG), probably in France. So far, the Russians have made it very clear that they will not meet just for the hell of meeting, and that the only circumstance in which the Russians will agree to a NG meeting would be if it has good chances of yielding meaningful results which, translated from Russian diplomatic language simply means “if/when Kiev stops stonewalling and sabotaging everything”. Specifically, the Russians are demanding that Zelenskii commit in writing to the so-called “Steinmeier formula” and that the Ukrainian forces withdraw from the line of contact. Will that happen? Maybe. We shall soon find out.

But the single most amazing event of the past couple of weeks was the absolutely astonishing speech French President Emmanuel Macron made in front of an assembly of ambassadors. I could not find the full speech translated into English (I may have missed it somewhere), so I will post the crucial excerpts in French and translate them myself. If I find a full, official, translation I will post it under this column ASAP. For the time being, this is the link to the full speech transcript in French:

https://www.elysee.fr/emmanuel-macron/2019/08/27/discours-du-president-de-la-republique-a-la-conference-des-ambassadeurs-1

Let’s immediately begin with some of the most incredible excerpts, emphasis added by me: (sorry for the long quote but, truly, each word counts!)

L’ordre international est bousculé de manière inédite mais surtout avec, si je puis dire, un grand bouleversement qui se fait sans doute pour la première fois dans notre histoire à peu près dans tous les domaines, avec une magnitude profondément historique. C’est d’abord une transformation, une recomposition géopolitique et stratégique. Nous sommes sans doute en train de vivre la fin de l’hégémonie occidentale sur le monde. Nous nous étions habitués à un ordre international qui depuis le 18ème siècle reposait sur une hégémonie occidentale, vraisemblablement française au 18ème siècle, par l’inspiration des Lumières ; sans doute britannique au 19ème grâce à la révolution industrielle et raisonnablement américaine au 20ème grâce aux 2 grands conflits et à la domination économique et politique de cette puissance. Les choses changent. Et elles sont profondément bousculées par les erreurs des Occidentaux dans certaines crises, par les choix aussi américains depuis plusieurs années et qui n’ont pas commencé avec cette administration mais qui conduisent à revisiter certaines implications dans des conflits au Proche et Moyen-Orient et ailleurs, et à repenser une stratégie profonde, diplomatique et militaire, et parfois des éléments de solidarité dont nous pensions qu’ils étaient des intangibles pour l’éternité même si nous avions constitué ensemble dans des moments géopolitiques qui pourtant aujourd’hui ont changé. Et puis c’est aussi l’émergence de nouvelles puissances dont nous avons sans doute longtemps sous-estimé l’impact. La Chine au premier rang mais également la stratégie russe menée, il faut bien le dire, depuis quelques années avec plus de succès. J’y reviendrai. L’Inde qui émerge, ces nouvelles économies qui deviennent aussi des puissances pas seulement économiques mais politiques et qui se pensent comme certains ont pu l’écrire, comme de véritables États civilisations et qui viennent non seulement bousculer notre ordre international, qui viennent peser dans l’ordre économique mais qui viennent aussi repenser l’ordre politique et l’imaginaire politique qui va avec, avec beaucoup de force et beaucoup plus d’inspiration que nous n’en avons. Regardons l’Inde, la Russie et la Chine. Elles ont une inspiration politique beaucoup plus forte que les Européens aujourd’hui. Elles pensent le monde avec une vraie logique, une vraie philosophie, un imaginaire que nous avons un peu perdu

Here is my informal translation of these words:

The international order is being shaken in an unprecedented manner, above all with, if I may say so, by the great upheaval that is undoubtedly taking place for the first time in our history, in almost every field and with a profoundly historic magnitude. The first thing we observe is a major transformation, a geopolitical and strategic re-composition. We are undoubtedly experiencing the end of Western hegemony over the world. We were accustomed to an international order which, since the 18th century, rested on a Western hegemony, mostly French in the 18th century, by the inspiration of the Enlightenment; then mostly British in the 19th century thanks to the Industrial Revolution and, finally, mostly American in the 20th century thanks to the 2 great conflicts and the economic and political domination of this power. Things change. And they are now deeply shaken by the mistakes of Westerners in certain crises, by the choices that have been made by Americans for several years which did not start with this administration, but which lead to revisiting certain implications in conflicts in the Middle East and elsewhere, and to rethinking a deep, diplomatic and military strategy, and sometimes elements of solidarity that we thought were intangible for eternity, even if we had constituted together in geopolitical moments that have changed. And then there is the emergence of new powers whose impact we have probably underestimated for a long time. China is at the forefront, but also the Russian strategy, which has, it must be said, been pursued more successfully in recent years. I will come back to that. India that is emerging, these new economies that are also becoming powers not only economic but political and that think themselves, as some have written, as real “civilizational states” which now come not only to shake up our international order but who also come to weigh in on the economic order and to rethink the political order and the political imagination that goes with it, with much dynamism and much more inspiration than we have. Look at India, Russia and China. They have a much stronger political inspiration than Europeans today. They think about our planet with a true logic, a true philosophy, an imagination that we’ve lost a little bit.

Now let’s unpack these key statements one by one:

1) “ great upheaval that is undoubtedly taking place for the first time in our history in almost every field and with a profoundly historic magnitude”

Here Macron sets the stage for some truly momentous observations: what will be discussed next is not only a major event, but one without precedent in history (whether French or European). Furthermore, what will be discussed next, affects “almost every field” and with huge historical implications.

2) “We are undoubtedly experiencing the end of Western hegemony over the world”

When I read that, my first and rather infantile reaction was to exclaim “really?! No kiddin’?! Who would have thought!?” After all, some of us have been saying that for a long, long while, but never-mind that. What is important is that even a Rothschild-puppet like Macron had to finally speak these words. Oh sure, he probably felt as happy as the Captain of the Titanic when he had to (finally!) order a general evacuation of this putatively unsinkable ship, but nonetheless – he did do it. From now on, the notion of the end of the western hegemony on the planet is no more relegated to what the leaders of the Empire and their propaganda machine like to call “fringe extremists” and has now fully entered the (supposedly) “respectable” and “mainstream” public discourse. This is a huge victory for all of us who have been saying the same things for years already.

3) “by the mistakes of Westerners in certain crises, by the choices that have been made by Americans for several years”

Here, again, I feel like engaging in some petty self-congratulation and want to say “I told you that too!”, but that would really be infantile, would it not? But yeah, while the internal contradictions of western materialism in general, and of AngloZionist Capitalism specifically, have been catching up with the Western World and while an eventual catastrophic crisis was inevitable, it also sure is true that western leaders mostly did it to themselves; at the very least, they dramatically accelerated these processes. In this context, I would single out the following politicians for a nomination to a medal for exceptional service in the destruction of the western hegemony over our long-suffering planet: Donald Trump and Barak Obama, of course, but also François Hollande and Emmanuel Macron (yes, he too even if he now changes his tune!), Angela Merkel, of course, and then last but not least, every single British Prime Minister since Margaret Thatcher (maybe with special commendation for Teresa May). Who knows, maybe they were all KGB/GRU/SVR agents after all? (just kiddin’!)

4) “ the emergence of new powers whose impact we have probably underestimated for a long time. China is at the forefront, but also the Russian strategy, which has, it must be said, been pursued more successfully in recent years”

Next, it’s not only China. Russia too is a major competitor, and a very successful one at that, hence the admission that in spite of all the efforts of the AngloZionist elites not only did the Empire not succeed in breaking Russia, but Russia has been very successful in defeating the western efforts. To those interested, I highly recommend this article by Jon Hellevig on the true state of the Russian economy. Finally, in military terms, Russia has achieved more than parity. In fact, I would argue that at least in terms of quality the Russian armed forces are ahead in several crucial technologies (hypersonic missiles, air defenses, electronic warfare etc.) even while she still lags behind in other technologies (mostly truly obsolete things like aircraft carriers). But most crucial is the political victory of Russia: five years after the Euromaidan and the liberation of Crimea from the Nazi yoke, the USA is far more isolated than Russia. It’s comical, really!

5) “real “civilizational states” which now come not only to shake up our international order

I have been speaking about a unique, and very distinct, “Russian civilizational realm” in many of my writings and I am quite happy to see Macron using almost the same words. Of course, Macron did not only mean Russia here, but also India and China. Still, and although the Russian nation is much younger than the one of China or, even more so India, 1000 years of Russian civilization does deserve to be listed next to these two other giants of world history. And what is absolutely certain is that China and India could never build the new international order they want without Russia, at least for the foreseeable future. In spite of all the very real progress made recently by the Chinese armed forces (and, to a lesser degree, also the Indian ones), Russia still remains a much stronger military power than China. What Russia, China and India are, is that they are all former empires which have given up on imperialism and who know only aspire to be powerful, but nevertheless “normal” nations. Just by their size and geography, these are “un-invadable” countries who all present a distinct model of development and who want a multi-polar international order which would allow them to safely achieve their goals. In other words, Macron understands that the future international order will be dictated by China, Russia and India and not by any combination of western powers. Quite an admission indeed!

6) “ Look at India, Russia and China. They have a much stronger political inspiration than Europeans today. They think about our planet with a true logic, a true philosophy, an imagination that we’ve lost a little bit.”

This is the “core BRICS” challenge to the Empire: China and Russia have already established what the Chinese call a “Comprehensive Strategic Partnership of Coordination for the New Era”. If they can now extend this kind of informal but extremely profound partnership (I think of it as “symbiotic”) to India next, then the BRICS will have a formidable future (especially after the Brazilian people give the boot to Bolsonaro and his US patrons). Should that fail and should India chose to remain outside this unique relationship, then the SCO will become the main game in town. And yes, Macron is spot on: China and, especially, Russia have a fundamentally different worldview and, unlike the western one, theirs does have “much stronger political” goals (Macron used the word “aspirations”), “a real philosophy and imagination” which the West has lost, and not just a “little bit” but, I would argue, completely. But one way or the other, and for the first time in 1000 years, the future of our planet will not be decided anywhere in the West, not in Europe (old or “new”), but in Asia, primarily by the Russian-Chinese alliance. As I explained here, the AngloZionist Empire is probably the last one in history, definitely the last western one.

Now we should not be naïve here, Macron did not suddenly find religion, grow a conscience or suddenly become an expert on international relations. There is, of course, a cynical reason why he is changing his tune. In fact, there are several such reasons. First, it appears that the on and off bromance between Macron and Trump is over. Second, all of Europe is in free fall socially, economically and, of course, politically. And with a total nutcase in power in London dealing with Brexit and with Angela Merkel’s apparently never-ending political agony, it is only logical for a French head of state to try to step in. Furthermore, while I have always said that Russia is not part of Europe culturally and spiritually, Russia is very much part of Europe geographically, economically and politically and there is simply no way for any imaginable alliance of European states to save Europe from its current predicament without Russian help. Like it or not, that is a fact, irrespective of whether politician or commentator X, Y or Z realizes this or not. Macron probably figured out that the so-called “East Europeans” are nothing but cheap prostitutes doing whatever Uncle Shmuel wants them to do, Germany is collapsing under the weight of Merkel’s “brilliant” immigration policy while the UK under BoJo is busy trying to self-destruct at least as fast as the USA under Trump. Macron is right. If united, Russia and France could build a much safer Europe than the one we see slowly and painfully dying before our eyes today. But he is also wrong if he thinks that Russia can be “re-invited” back into the AngloZionist sphere of influence. In that context, Putin’s reply to the question of whether Russia was willing to return to the G8 is very telling: first he said that if the G7 wants to come back to Russia, Putin would welcome that, but then he also added that the G7/8 is useless without, yes, you guessed it, China and India.

It will be interesting to see if the current G7 will ever agree to mutate into a new G10 which would make Russia, China and India the most powerful block (or voting group) of this new forum. I personally doubt it very much, but then they are becoming desperate and Macron’s words seem to be indicating that this option is at least being discussed behind closed doors. Frankly, considering how quickly the G7 is becoming utterly irrelevant, I expect it to be gradually phased out and replaced by the (objectively much more relevant) G20.

Finally, there are Trump’s efforts into getting Russia back into the G8 which are very transparently linked to the current trade war and geostrategic competition between the US and China. The offer is useless to Russia, just like the return to PACE, but Russia does not want to needlessly offend anybody and that is why Putin did not publicly rebuff Trump or directly refuse to come to Miami: instead, he approved of the general concept, but offered a better way to go about it. Typical Putin.

Conclusion: Macron reads the writing on the wall

Whatever his political motives to say what he said, Macron is no idiot and neither are his advisors. Neither is this a “one off” thing. The French meant every word Macron spoke and they are putting everybody on notice (including the Ukrainians, the US, the EU and the Russians, of course). In fact, Macron has already invited Putin to participate in a Normandy Format meeting in Paris in the very near future. If that meeting eventually does take place, this will mean that the organizers gave Putin guarantees that this will not just be the usual kaffeeklatsch and that some serious results will finally be obtained. That, in turn, means that somebody – probably the French – will have the unpleasant task of telling the Ukrainians that the party is over and that they now need to get their act together and start implementing the Minsk Agreements, something which Zelenskii might or might not try to do, but which the real gun-toting Ukronazis will never accept. Thus, if the West is really serious about forcing Kiev to abide by the Mink Agreements, then the West has to finally give-up its self-defeating russophobic hysteria and substantially change their tone about the Ukraine. To invite Putin to Paris just to tell him again that Russia (which is not even a party to the Minsk Agreements) “must do more” makes zero sense. Therefore, all the other parties will have to come to terms with reality before inviting Putin. Apparently, this might be happening in Paris. As for Trump, he just offered to mediate (if asked to do so) between Russia and the Ukraine.

It shall be extremely interesting to see if this Normandy Format meeting does actually take place and what role, if any, Trump and the USA will play behind the scenes. We shall then know if Macron’s epiphany was just a one-time fluke or not.

The Saker

PS: the latest rumor from the Ukraine: Zelenskii supporters are saying that Poroshenko is preparing a coup against Zelenskii and that he is preparing a special force of Ukronazi deathsquads to execute that coup. Dunno about a real coup, but they have already blocked the Rada. Never a dull moment indeed… 🙂

The Western propaganda of homosexuality and cannibalism

The Western propaganda of homosexuality and cannibalism

September 07, 2019

by Ruslan Ostashko

Translated by Scott and captioned by Leo

The propaganda of perversions in the West has reached new heights. The British leading sports clubs promote the LGBT “values,” and their scientists drag cannibalism into the category of normal.

No matter how much effort is made by the “normal countries” to promote degeneration, it never seems to be enough for them. In the course of pushing the Western agenda all methods are good. For example, the use of well-known sports clubs.

Manchester City Football Club partnered with Puma in release of a special uniform in support of the LGBT community. The set is timed to coincide with the annual gay pride events that started in Manchester on August 23. Students from Manchester Metropolitan University – the fifth largest in the UK (per number of students), including the School of Arts, Theater School and school of Architecture, participated in the design of the uniform. The t-shirt is made in white with rainbow edging around the emblem of the “City”. The LGBT flag is featured on the back with the inscription “Proud”, highlighted in sky blue. Also the design of the football club t-shirt contains the inscription “Together We Stand”, and the logo of the organization “Football Against Homophobia.”

That is, the idols of British youth, by taking to the field in this uniform, will take part in promoting the thesis that being a pervert is normal. Characteristically, the named club is owned by sheikhs from the United Arab Emirates. It would seem that homosexuality and the Islamic worldview are incompatible. But come to think of it, there was no objection from Manchester City club owners to LGBT uniforms. Apparently they decided that a PR for the club is acceptable, since it promises an increase in profits.

“In the online store of the club this uniform can be purchased for $30 (basic kits cost $235). ‘This is an ideal way for citizens to express support for everything related to the LGBT community and, of course, to demonstrate love for the team,’ the product description says.”

However, if we speak about perversions, the West promotes much more wild things.

In recent years, the Western info-field has increasingly started to generate ‘authoritative’ statements that, perhaps, ‘it’s time to reconsider the outdated taboo on human cannibalism,’ and that ‘ethical cannibalism can not be excluded from the public debate.’”

Last year, the University of Warwick hosted a curious conference called “BITES HERE AND THERE”: LITERAL AND METAPHORICAL CANNIBALISM ACROSS DISCIPLINES,” where serious topics such as “Cannibalism and anthropocentrism: getting to know the other as meat” were discussed. “Identification of the noble and baser cannibalistic motif: typology of risk and necessary,” “Ethical approach to eating: justification of cannibalism in modern literature” and “a kiss as beginning of cannibalism.”

If you think it’s obvious madness – a single madness of a senile individual, it’s not.

The other day, scientists-psychologists from the British Lancaster University turned the volume up by publishing the results of the study, where the subjects were asked to assess the situation where their friend gave them permission to eat his flesh after his death, and the risks of diseases were excluded. In doing so, they were given a context in which eating the corpse of the deceased is an act of respect and memory. The authors of the study regret to state that, despite all the explanations and logical calculations, people overwhelmingly consider even ‘ethical cannibalism’ disgusting and absolutely unacceptable. However, scientists express the hope that we will still ‘be able to adapt to eating human meat if the need arises.’”

Cannibalism is common in the animal kingdom – here’s why for humans it’s the ultimate taboo

Note: this fits perfectly into the fashionable Western talk about the need to reduce the population of the planet. The same US is trying its best, constantly killing residents of Afghanistan, Pakistan and other countries with drones as part of the hypocritical “fight against terrorism.” American drones constantly miss for years, killing civilians instead of extremists.

[Not in the video.]

An instructive account of how many civilians, including children, must be killed to eliminate a terrorist with “precision weapons”.

They were aiming for 41, but killed 1,147.

A new analysis of data from a human rights agency (in the United States), which was shared with the Guardian newspaper, raises questions about the accuracy of “point strikes” drones.

On January 13, 2006, drones came for Ayman Zawahiri, allegedly hiding in Damadola village in Pakistan. 10 months later they were bombing Bajaur. 8 years later, Zawahiri is still alive. 76 children and 29 adults were killed after 2 strikes.

Many Americans have never heard about Zawahiri, even less they heard about Qari Hussain. He was the head of the Pakistani Taliban, a group believed by the US to be linked to al-Qaeda, and prepared Times Square bomber, Faisal Shahzad for his failed attack in 2010. The drones came for Hussain years before.

First, 29 Jan 2008, then 23 June 2009, 15 Jan. 2010, 2 Oct. 2010, and Oct. 7 2010.

Finally, on 15 October a Hellfire rocket killed Hussein, that the Taliban later confirmed.

To kill a man whom almost no American couldn’t name, the United States killed 128 people, including 13 children.

A new analysis by the Agency shows that even when an operator targets a particular person, they kill significantly more people. Attempts to kill 47 people resulted in 1,147 deaths on 24 November 2014.

The analysis is an estimate of the damage done by Obama’s favorite weapon, called “the most accurate.”

Drone strikes were sold to the American public as “accurate.” But they’re just as “accurate” as the intelligence that feeds us. There’s nothing “accurate” about killing 28 unidentified people, including children, for every person the U.S. hunts.

24 people in Pakistan have been hunted, it resulted in the death of 874 people. All were announced to the press as “killed “ many times, suggesting multiple strikes anywhere. An estimated 142 children were killed in the hunt for 24 people, and only 6 of those 24 were actually killed in drone attacks.

Under the pretense to target some 41 terrorists, the US killed 1,147 random people. They say it was “accidental.”

[Back to the video.]

But this rate of reducing the population is not enough for them. If they succeed in brainwashing the population that devouring neighbors is normal, then the struggle to reduce the number of people will go to a whole new level.

Sounds crazy, doesn’t it? But you’ve seen links to research sites about cannibalism. The Overton window is already open and stinks of cooked human flesh. And don’t say it’s impossible. Who in their right mind in Britain could say out loud in the middle of the past century that after 70 years, Manchester City players will play in t-shirts propagandizing sexual perversions?

And they’re willing to wear these t-shirts for money. And their Muslim sponsors are willing to turn a blind eye. From this perspective, the idea of legalizing cannibalism in the West does not seem so impossible, does it?

The propaganda of perversions in the West has reached new heights. The British leading sports clubs promote the LGBT “values,” and their scientists drag cannibalism into the category of normal.

ترامب من علامات زوال الأحادية القطبية

سبتمبر 7, 2019

د. وفيق إبراهيم

الهيمنة الأميركية على العالم تقترب من نهاياتها، لكن الرئيس الروسي فلاديمير بوتين والفرنسي ايمانويل ماكرون يجزمان بأن عصر تعدّد الأقطاب على المستوى الدولي بدأ بقوة كبيرة على أنقاض الأحادية الأميركية التي انتهت برأيهما الى غير رجعة.

فما هي مؤشرات هذا التحول؟

استناداً الى ماكرون، فقال مذكراً على هامش مؤتمر السبعة الكبار إن الغرب هيمن على العالم في القرن 18 بواسطة فرنسا وفي 19 ببريطانيا مسيطراً على القرن العشرين بالصعود الأميركي ، معتبراً ان روسيا والصين والهند بما ابتكروه من سلاح واقتصاد وسلع وسياسات انتشرت على مستوى الأرض، ازالوا الهيمنة الغربية لمصلحة نظام متعدد القطب بدأ يعمل بنشاط كبير.

بدوره جزم بوتين بأهمية الصين والهند في العالم الجديد المتعدّد القطب الذي اسقط باعتقاده الاحادية الأميركية التي تسببت منذ سقوط منافسيها الاتحاد السوفياتي في 1989 بمئات الحروب وملايين القتلى والدمار والتراجع الاقتصادي العالمي وتوفير المناخات المناسبة لحرب نووية فعلية.

لقد سيطر الأميركيون قبل ثلاثة عقود على الاقتصاد الدولي المهيمن على العالم، ممسكين بكامل الأزمات والعلاقات السياسية الكونية. وهذه عناصر تتكئ على جيش قوي جداً له سبع مئة قاعدة منتشرة في كل الزوايا الأكثر استراتيجية على سطح الارض.

اما منافسته روسيا وريثة السوفياتي فخسرت السياسة والاقتصاد وادوارها في الازمات، وتراجعت حتى من محيطها في أوروبا الشرقية حتى لم يبق لها إلا قاعدة صغيرة في سورية مطلة على البحر المتوسط. وهذا ادى في حينه الى ولادة الاحادية الأميركية المتغطرسة.

لكن الوضع الحاضر لم يعُد كما كان قبل ثلاثين عاماً، فألمانيا والصين والهند واليابان هي قوى اقتصادية وازنة التهمت من الانتفاخ الاقتصادي الأميركي.

والغاز طاقة القرن المقبل تسيطر على القسم الاكبر من مخزونه روسيا وايران وسورية، بالاضافة الى روسيا وفنزويلا وايران يحتكرون قسماً اساسياً من النفط، اما الأزمات فلروسيا دور اساس في معظمها من أميركا الجنوبية الى الشرق الاقصى والشرق الاوسط وتسعى لاختراق الأميركيين في اكثر من مكان حتى انها عقدت اتفاقية لإنهاء النزاع الموروث من الحرب العالمية الثانية مع اليابان.

لجهة العلاقات السياسية تكفي الاشارة الى ما قاله ماكرون حول الضرورة الاوروبية للاعتراف بالدور الروسي العالمي كاشفاً ان الاستعداء الغربي لروسيا كان عاملاً دفع بموسكو الى التخوّف ورد التحدي ببناء اكبر منظومة سلاح تتفوّق على نظيرتها الأميركية، فتحولت جاذباً تتسابق الدول على شرائها وامتلاكها.

كما ادى سقوط الجانب الايديولوجي الالحادي بسقوط السوفيات الى تمكن الروس من تأسيس علاقات مبدئية مع دول الخليج وأفريقيا واوروبا.

للاشارة ايضاً فإن اوراق روسيا في الحرب على سورية والعراق أقوى من الدور الأميركي على الرغم من ان الأميركي يحتل اقساماً من البلدين بأكثر من 15 الف جندي، كما انها تحظى بدور مميز بين اطراف التوتر في الخليج من خلال تحالفها مع ايران وعلاقاتها بالسعودية ودول الخليج وانفتاحها على اليمن والعراق، فيما تتردد معلومات عن نية موسكو تزويد الحشد الشعبي العراقي بمنظومة للدفاع الجوي إذا اقترن هذا الطلب بموافقة الدولة العراقية.

لذلك فإن مكانة روسيا في قلب الثروات الاقتصادية للعالم في الشرق الأوسط أقوى من منافسيها وها هي تركيا العضو التاريخي في الناتو والحليفة الأساسية للأميركيين تقترب من التساوي الاقتصادي مع الأميركيين الى حدود التفوق عليه بعد عقد تقريباً مع تقدم هندي يربض على الكتلة البشرية الثانية في العالم، تتواكب مع تقدم علمي وصناعي لافت الى جانب السلاح المتقدم والنووي.

هناك الى جانب ما تقدم تذمّر أوروبي من السياسة الأميركية التي لا تريد شريكاً، وتعامل أوروبا كدول من الدرجة الثانية يجب عليها ان تؤيد أميركا على نظام السمع والطاعة السعودي ولا تعترض او تحاول مجاراتها.

للاشارة فإن معظم الاوروبيين منزعجون من سياسات الرئيس السابق جورج بوش الإبن التي تؤرخ للعصر الأميركي لاحتلال الدول والتدمير ومستاؤون أكثر من مرحلة الرئيس الحالي ترامب الذي يحاول إنعاش الاحادية الأميركية بابتزاز الدول الصديقة لبلاده بشكل لا يُفرق فيه بين السعودية واليابان والإمارات والمانيا وكوريا الجنوبية والكويت، يبدو سمساراً يأكل من الجميع مفتعلاً الازمات على حساب العلاقات الاستراتيجية لبلاده مع العالم. وهذا دليل اضافي على احساس الادارة الأميركية باقتراب نهاية احاديتها غير القابلة للترميم الا بحروب لا تبدو نتائجها مضمونة، وقد تتطوّر نووياً فلا تبقي على الحضارة الإنسانية بكاملها.

ترامب اذاً هو بالنسبة للأوروبيين من علامات قيامة التعددية القطبية على انقاض انهيار الاحادية الأميركية.

فهل هذا صحيح؟

يعتقد مجمل الباحثين ان ما يخفي هذه المعادلة الجديدة هي حرب الخليج التي يشكل استمرارها ارجاء فقط لسقوط نظام الهيمنة الأميركية، هذه الهيمنة التي تحاول تجديد شبابها بتشكيل أمن ملاحة يسيطر عليه الأميركيون في بحار الخليج وعدن والاحمر والمتوسط، لكن الروس فهموا اللعبة معلنين انهم قادرون على حماية ناقلاتهم في هذه البحار بقوتهم العسكرية، وكذلك فعلت الهند التي جزمت بدورها انها مستعدة لحماية ناقلاتها امنياً.

فهل انتهت الاحادية الأميركية؟

يتجه الأميركيون الى التعامل مع روسيا على هذه القاعدة، إنما بعد استئثارهم بأموال اضافية من بعض انحاء العالم، والدليل ان ترامب دعا الدول السبع الكبار الى إعادة روسيا الى ناديها، وهذه مسألة لن يطول أمرها، تماماً كمسألة النظام القطبي المتعدد الذي ظهر واضحاً في مؤتمر فلاديفوستوك الروسي العالمي الأبعاد.

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A Dinner with the Devil: The Suspicious Links of the Independent’s Owner with MBS

A Dinner with the Devil: The Suspicious Links of the Independent’s Owner with MBS

By Staff, The Guardian

Evgeny Lebedev, the owner of the Independent and the Evening Standard, hosted a private dinner for the Saudi crown prince, Mohammed bin Salman [MBS], raising further questions about the media mogul’s links to the de facto ruler of the Middle Eastern kingdom.

Lebedev’s news outlets are being investigated due to public interest concerns over a mysterious Saudi investment made through a web of offshore bank accounts, with the UK government suggesting that the Independent and Evening Standard are now part-owned by the Saudi state. The culture secretary, Nicky Morgan, has until Friday to decide whether or not to appeal against a court ruling that the UK government missed a deadline to intervene in the deal.

The revelation that Lebedev had a personal relationship with MBS raises further questions about the connections between the two men. According to the Guardian, MBS had taken time out of his brief state visit to London in March 2018 – when he was hosted by the then prime minister, Theresa May, and the Queen – to spend time with the Russian oligarch’s son, who is thought to have hosted the dinner at his house in the grounds of Hampton Court Palace.

Leading business and media figures were also in attendance at the event, including the Virgin co-founder Richard Branson, whose spokesperson confirmed his attendance, saying: “Richard went to dinner as he was invited by Lebedev, who he knows well. At that time Virgin was discussing an investment with the [Saudi national investment fund] PIF in Virgin Galactic, which was later called off by Richard. The dinner was a personal one and not focused on business.”

Lebedev’s spokesperson declined to comment on the dinner but insisted MBS had no personal role in arranging the disputed investments in the London-based news outlets. At this time MBS was still attempting to project a modernizing image of his country, work that would be largely undone later that year when he was implicated in the murder of the journalist Jamal Khashoggi.

Questions remain over why a Saudi state bank decided to buy a 30% stake in two British news outlets and how the deal was arranged. Multiple sources told the Guardian the Independent chairman, Justin Byam Shaw, had previously claimed he had discussed the initial Saudi investment with the former Prime Minister Tony Blair in 2017.

Tony Blair’s Institute has since received millions of pounds from the Saudi Research and Marketing Group – a state-controlled media business which now runs a Saudi franchise of the Independent – while Saudi sources also said Blair had met Prince Mohammed later that year.

Both Lebedev’s spokesperson and Blair denied that the former Labor prime minister was an adviser on the investment. However, neither side would comment on claims that Byam Shaw had informally met and discussed the deal with Blair in 2017.

May’s government unexpectedly launched a formal investigation into whether the Saudi investment in the Evening Standard and Independent should be investigated on public interest grounds, with a court hearing claims that the man originally presented as the main investor, an unknown businessman named Sultan Mohamed Abuljadayel, was merely a frontman for the Saudi state.

The decision to launch an investigation, made in the dying days of May’s leadership, could prove to be a headache for Boris Johnson as he has close links to both Lebedev and the Evening Standard editor, George Osborne, whom he is currently promoting as a possible new boss of the International Monetary Fund.

When questioned about the Saudi investment earlier this year, Osborne insisted the titles retained editorial independence: “The days when British newspapers were owned by British people living in Britain disappeared 50 years ago. It is a reality that newspaper ownership is very diverse in this country.”

The prime minister has separately declined to answer questions from the Guardian about whether he abandoned his security detail to attend parties hosted at Lebedev’s Italian villa earlier this summer.

As a result of the deal the Independent has launched a series of foreign language websites aimed at Middle Eastern audiences. The Independent-branded sites are staffed and run by employees of Saudi Research and Marketing Group – the same company that later funded Blair’s institute. Some of the journalists producing the content are based in the Saudi capital, Riyadh, which has one of the lowest rankings for press freedom in the world.

Although the foreign-language Independent sites take some articles from the main English-language websites, London-based Independent employees have noted that stories critical of Saudi Arabia often fail to be translated. Lebedev’s spokesperson said they were aware of concerns from some UK staff but noted the overseas sites “are licensed properties” not directly under their purview.

New World Order in Meltdown, But Russia Stronger Than Ever

New World Order in Meltdown, But Russia Stronger Than Ever

August 30, 2019

by Jon Hellevig for The Saker Blog

Last week was full of portentous events. Only somebody who has not been awake for the last few years will fail to realize how these at first sight unconnected events are part of the same matrix. There was the ever louder talk in mainstream media about an approaching global recession, inverted yield curves and the negative yields, which tell us that the Western financial system is basically in coma and kept alive only by generous IV injections of central bank liquidity. By now it has dawned on people that the central bankers acting as central planners in a command economy and printing money (aka quantitative easing) to fuel asset bubbles are about to wipe off the last vestiges of what used to be a market economy.

Then we saw Trump taking new twitter swipes at China in his on-and-off “great trade deal” and the stock markets moving like a roller coaster in reaction to each new twitter salvo. Also, we had both Trump and Macron sweet talking about getting Russia back and again renaming their club G8. Last Tuesday at a G7 presser in Biarritz, the Rothschild groomed Macron took it one step further opening up about the reasons why they all of a sudden longed for friendship with Russia: “We are living the end of Western hegemony.” In the same series, Britain’s new government under Boris Johnson was telling his colleagues in Biarritz that he is now decisively going for a no-deal Brexit, after which he went back to London and staged a coup d’état by suspending parliament to ensure no elected opposition interfered with it.

Perhaps the weirdest news to crown it all, came from Jackson Hole, Wyoming, where the Western central bankers were holed up for their annual retreat. The president of Bank of England Mark Carney shocked everybody (at least those not present) by announcing that the US dollar was past its best-before and should be replaced with something the central bankers have up their sleeves.

The New World Order is in its death throes

What these events have in common is that they amount to an admission that the globalist New World Order project in its present form is dead, or at least in its death throes. It has bumped its head against an impenetrable Sino-Russian wall of resistance. The heated totalitarian propaganda against Russia since 2001 (when the NWO realized that Putin wasn’t their man); regime change and color revolutions in neighboring countries; attempts at Maidan style coups in Moscow; and finally the sanctions since 2014 were key to the Anglo-Zionist empires strategy. They needed to take over either China or Russia to gain absolute world hegemony. Taking over either one, they would have checkmated the remaining one, and after that the entire world. They rightly deemed Russia as the weaker piece and went all out in that direction. The NWO wanted to take advantage of Russia’s weakness in form of its Western minded comprador class and a shell-shocked liberal intelligentsia (dominating media, culture and business, just like in Hong Kong, BTW), which is constitutional uncapable of thinking with their own brains to liberate themselves from Soviet era stereotypes (“Soviet Union/Russia bad, West good”).

They then figured that economic and cultural sanctions (e.g. Olympic ban) coupled with doubling down on the propaganda would break the country. Luckily, the Russian narod, the common people saw through it all and would not play along with the enemy. At the same time, Russia paraded its resurrected military in Crimea and Syria as well as its formidable new hypersonic doomsday weapons. The military option to take over Russia was not in the cards any longer.

Russian economy from strength to strength

And the Russian economy. Believing their own propaganda, they had got that totally wrong. Endlessly repeating their own self-serving talking points they must have truly fancied that Russia’s economy amounted to nothing else than export of fossil fuels, that “Russia’s economy is the size of Holland’s,” that “Russia does not produce anything,” and that Russia was “nothing but a gas station with nukes” (somehow managing to ignore the significance of the nukes part). I seriously believe, that the propaganda had become so complete that the Western leaders and the intelligence people actually had come to adapt their own propaganda as the truth. What is for sure, is that all Western media, including what should be the most respected business journals and all those think tanks, had not published one honest appraisal of the Russian economy in 15 years. Every single piece I read over the years had clearly been written with the aim to denigrate Russia’s achievements and economic development. Nowhere to be found were reports on how Putin by 2013 had totally overhauled the economy transforming Russia into the most self-sufficient diversified major country in the world with all the capabilities of the foremost industrial powers. In fact, I tend to think that even the US presidents from Bush to Obama were fed in their intelligence briefings cooked up fake reports about the Russian economy and the whole nation. Actually, I would go one step further. I bet that the CIA itself in the end believed the propaganda it had given birth to. (It has been said that at some point the genuine Russia analysts had all been dismissed or demoted and replaced with a team specializing in anti-Russian propaganda).

But actually all the data was there in plain view. I myself took the trouble to compile a report on the real conditions of Russia’s economy fresh at the onset of the 2014 crisis. In the report, I set out to show that Russia indeed had modernized and diversified its economy; that it had a vibrant manufacturing industry in addition to its energy and minerals sector; and that its budget revenues and economy at large were not at all as dependent on oil and gas as it was claimed. Among other things, we pointed out that Russia’s industrial production had by then grown more than 50% (between 2000 and 2013) while having undergone a total modernization at the same time. In the same period, production of food had surged by 100% and exports had skyrocketed by almost 400%, outdoing all major Western countries. Even the growth of exports of other than oil and gas products had been 250%.

The gist of the study https://www.awaragroup.com/blog/putin-midterm-interim-results/ may be summarized with this quote from it: “The crisis-torn economy battered by years of robber capitalism and anarchy of the 1990’s, which Putin inherited in 2000, has now reached sufficient maturity to justify a belief that Russia can make the industrial breakthrough that the President has announced.” Events have borne out this insight. And it is therefore that Russia won the sanctions battle.

The report represented an appeal to the Western leaders to give up on their vain hope of destroying Russia through their sanctions and risking nuclear war at it. Russia was invincible even in this respect. For that purpose I expressly added this missive in the introduction to the report:

“We strongly believe that everyone benefits from knowing the true state of Russia’s economy, its real track record over the past decade, and its true potential. Having knowledge of the actual state of affairs is equally useful for the friends and foes of Russia, for investors, for the Russian population – and indeed for its government, which has not been very vocal in telling about the real progress. I think there is a great need for accurate data on Russia, especially among the leaders of its geopolitical foes. Correct data will help investors to make a profit. And correct data will help political leaders to maintain peace. Knowing that Russia is not the economic basket case that it is portrayed to be would help to stave off the foes from the collision course with Russia they have embarked on.”

A follow-up report https://www.awaragroup.com/blog/russian-economy-2014-2016-the-years-of-sanctions-warfare/ of June 2017 covering the sanctions years 2014 – 2016, showed how Russia went from strength to strength never mind the Western attempts at isolation. This report stressed that Russia’s economy had now become the most diversified in the world making Russia the most self-sufficient country on this earth.

In this report we exposed the single biggest error of the propaganda driven Russia analysis. This was the ridiculous belief that Russia supposedly was totally dependent on oil and gas just because those commodities made up the bulk of the country’s exports. Confusing exports with the total economy, they had foolishly confused the share of oil and gas in total exports – which was and remains at the level of 60% – with the share of these commodities of the total economy. In 2013 the share of oil and gas of Russia’s GDP was 12% (today 10%). Had the “experts” cared to take a closer look they would have realized that on the other side of the equation Russia’s imports were by far the lowest (as a share of GDP) of all major countries. The difference here is that while Russia does not export a great deal of manufactured goods, it produces by far a bigger share of those for the domestic market than any other country in the whole world. Taking the 60% of exports to stand for the whole economy was how the “Russia produces nothing” meme was created.

Finally in a November 2018 report https://www.awaragroup.com/blog/russian-economy-strong-and-stable/#chapter2, I could declare that Russia had won hands down the sanctions war having emerged from it as a quadruple superpower: industrial superpower, agricultural superpower, military superpower and geopolitical superpower.

Macron et co. realizes that Russia actually is a superpower

These facts have now finally dawned on certain key stakeholders of the globalist regime can be discerned from the fact that they have tasked their handpicked puppet president Macron to make up with Russia. Trump has got the same assignment, which is evident from the siren calls of the two leaders in Putin’s address. Both want to invite Putin to their future G7-8 get-togethers.

As it was said, Macron went as far as unilaterally capitulating and declaring the decline of the West. He went on to spell out that the reason for this spectacular geopolitical about-face was the rise of the Beijing – Moscow (de facto) alliance that has caused a terminal shift on the world scene. Curiously, he also openly blamed the errors of the United States for the dire state of affairs pointing out that “not just the current administration” were to be blamed. No doubt, the foremost of these errors, Macron had in mind, was the alienation of Russia and pushing the country into the warm embrace of China. It is quite clear, that this is what they want to remedy, snatch the bear back from the dragon. Fortunately, that won’t happen. Good if there will be rapprochement and good if the West will try, but after all what Russia has learnt by now it will not sell out on China under any circumstances. I think Putin and the Russian powers that be have clearly opted for a multipolar world order. That is definitely not what Macron’s and Trump’s employers have in mind but let them try.

Until Trump took office, the strategy of the US regime had been to pursue only Russia in its geopolitical ambitions, but by then it had dawned on them that Russia was invincible especially in the de facto alliance with China. In a sign of desperation, the empire then opened big time another front with China. Essentially going from bad to worse.

The world order is being shaken like never before

“The world order is being shaken like never before…”, that’s another quote from Macron. Obviously, it refers to the military and geopolitical strengths of the Sino-Russian alliance, but certainly also to the economic shifts as the West has lost – and will keep losing – its economic domination. This brings us back to Mark Carney of Bank of England and his unprecedented attack on the US dollar (*1) https://www.zerohedge.com/news/2019-08-24/why-mark-carney-thinks-dollar-can-no-longer-be-worlds-reserve-currency arguing that it was time to end its global reserve currency status. As one option Carney brought up that the major Western central banks would instead issue a digital cryptocurrency. That is to say, a NWO currency controlled by the central banks. That would effectively mean the replacement of the Federal Reserve cartel with a cartel of the Western central banks (the Fed obviously being a part of it). That’s yet one step further north from any kind of democratic control and a giant step towards world government.

What could possibly have prompted such a radical US hegemony puncturing idea to be put forward? One reason obviously is that the Western economies really are in that extreme critical condition that more and more analysts caution about. (We shall look at the economic facts further down). There’s a very real possibility that we will be hit by a doomsday recession. What’s sure is that Carney’s bizarre speech could possibly not have occurred in a normal economic environment (any more than Macron’s admission that the Western hegemony is done with). According to Zerohedge (*2) https://www.zerohedge.com/news/2019-08-26/things-will-never-be-same-again-here-are-20-questions-central-banks-admit-defeat Financial Times, the party organ of the globalist elite, admitted as much in its report on the Jackson Hole meeting. The central bankers “acknowledged they had reached a turning point in the way they viewed the global system. They cannot rely on the tools they used before the financial crisis to shape the economic environment, and the US can no longer be considered a predictable actor in economic or trade policy — even though there is no imminent replacement for the US dollar in sight.” There was an effective admission that the central bankers had run out of tricks to pull the economies out of the everything-bubble mess, not to mention the looming doomsday recession. According to FT, Carney went as far as flashing the war card saying: “past instances of very low rates have tended to coincide with high risk events such as wars, financial crises, and breaks in the monetary regime.” On the one hand this can be seen as an admission on how deeply tormented they are about the financial situation and what could happen when it comes crashing down. On the other hand, it can be seen as a sales pitch, “only we can fix it, trust us, give us a carte blanche.” Or more probably, both.

Note from above Carney saying: “the US can no longer be considered a predictable actor in economic or trade policy.” Bank of England President here directly attacking President Trump.

And just a couple of days later William Dudley an ex-president of New York Federal Reserve Bank (the most influential of the 12 federal reserve banks that comprise the Federal Reserve System) followed up on a direct attack on Trump. But as they say about spies, there are no ex-spies, and I would think the same applies for the global financial elite. And yes indeed, Dudley is a card carrying member of the Council of Foreign Relations. Dudley had penned an op-ed for Bloomberg titled “The Fed Shouldn’t Enable Donald Trump.” (*3) https://www.zerohedge.com/news/2019-08-28/member-elite-bill-dudley-could-open-can-worms-quite-staggering , where he openly lobbies for the Fed to deliberately damage the economy in order to neutralize the policies (namely trade wars) of the sitting president and prevent his reelection chances by willfully ruining the economy.

One thing is for sure, the elite is desperate and in serious disarray. Very probable that the elite is split, too. It seems as if there were two globalist factions competing with each other and wanting to follow vastly different strategies. One faction supports Trump and the other is against him. Possibly, one that wants to do things with force and another that wants to gain by stealth. That could be Pentagon and the military-industrial complex vs. the financial elite, who also owns the media. My argument does not hinge on the veracity of those division lines, but that some rupture exists among the elites must be taken for granted, otherwise Trump would have been ousted by now with all that pressure on him.

To summarize this introduction. The Western world is in turmoil: the previous overwhelming geopolitical domination is gone and over with; military solutions against the main adversaries – China and Russia – are off the books; hybrid wars against them have failed; China and Russia are economically stronger than ever, too strong for the adversary; and to boot the domestic Western economies are in extraordinary bad shape, risking a depression of epic proportions.

Further down in this report, I will look at the one aspect of the question I am best equipped to handle, namely the economy. I will outline just in how bad shape the Western debt-fueled casino economies are. Having that as the background, I will then show how surprisingly strong the Russian economy is, at least in comparison with the Western gambling nations. Most importantly, Russia is virtually debtless, and that’s really the clue to survival in this extraordinary economic environment. In addition to the solid finances, Russia has other things going for it, too, as we will see below. I will not provide comparative data on China. One reason for that is, that China is not an economic risk. China does not have the debt problem that it is frequently touted in Western press to have. China, as the world’s number one export country, would of course take a hit in a serious global crisis, but that would not kill the economy. Although, China is the biggest exporter, there has been a shift from export-led growth towards domestic investment and consumption. The share of exports of goods and services in the country’s GDP was by 2018 down to 19.5%, half of the 2006 peak of 36%. On the contrary, the Chinese economy would stay vivid and therefore also help to sustain Russia’s exports.

I may add as one more piece of background, that it is my firm belief that the approaching economic disaster has long been evident to the central bankers and the globalist elite decision makers. Most likely the game plan was to establish the absolute world hegemony – which they not long ago thought was within early reach – and then after that deal with the debts as they saw fit as democratic dissent would not matter a bit anymore by then. That’s why they felt confident in building up the asset bubbles to carry them over to the final solution. Reminds me about a story told about Moscow’s so-called Khrushchyovka tenement buildings. These are low-cost three- to five-storied houses built quickly and cheap during the Khrushchev era to address the dire housing shortages of the 1960s. According to the story, the planners knew they would serve only for a few decades, but that would not matter all that much because by that time there would be Communism and everything would be perfect anyway. No Communism materialized, but presently the Moscow government under Mayor Sobyanin has initiated a program to tear them all down and erect new buildings where flats with title will be given for free to house the 1.5 million present residents of those buildings slated for replacement. – Well, that’s sort of Communism, isn’t it? – This kind of wishful thinking must have kept the globalist elite going, too. Unfortunately for the dreamers, though, their plans hit a snag in form of Russia and China.

Central bank fueled asset bubbles

Russia is low in debt, but you can’t say the same about the US and other Western nations. And that debt really is what got the world in the present mess and brought it teetering on the brink of financial collapse. Since the late 80s, the US central bank, the Federal Reserve under Alan Greenspan developed an addiction to cure any downward tick on Wall Street with easy credit, eventually requiring after every downturn ever bigger central bank liquidity injections to keep the stock indices on a growth curve. Greenspan was experimenting with a policy aimed at creating a “wealth effect” aka “trickle-down.” The idea being that Wall Street bankers and big corporations be stuffed with all the free money they can swallow for the purpose of keeping stock and bond prices high. The theoretical frame told that doing so something would eventually trickle down to the real economy, and everybody would live happily ever after. After stocks and bonds, Greenspan’s wealth effect policy was addressed to inflate home prices and all real estate with that. That was the road that eventually led to the 2008 subprime loan crisis, which took down Lehman Brothers and then all of Wall Street and the whole global economy.

But Wall Street recovered soon, because Greenspan’s successor Ben Bernanke had set forth to blow up an even bigger asset bubble. And the Europeans followed suit. The Fed fueled the market frenzy with creating money out of thin air (aka quantitative easing) in favor of governments, banks and corporations to the tune of $3.5 trillion in the decade following the 2008 collapse.

The European Central Bank has done the same for Europe in volumes more than 2.5 trillion euro to date. All the other Western central banks joined the gambling by flooding the markets with fiat money at same levels relatively speaking.

But anyway this astronomic leverage and the humongous budget deficits of the Western countries didn’t get the real economy anywhere. They have blown up asset bubbles of phantasmagorical proportions with preciously little trickle-down. Since the pre-crash peak in October 2007, the broadest US stock index (Wilshire 5000) has gained 95% (on top of covering the nearly 60% crash from in between). In the same 12-year period industrial production (manufacturing, mining, energy, utilities) has grown only 5% combined over all those years. (*4) https://www.deepstatedeclassified.com/heres-what-happens-when-the-fed-cuts-rates/ Deduct – the in itself lossmaking – shale oil and gas and there is barely no growth left in the 12 years. In fact, the US manufacturing sector was in June still 1.6% below the pre-crisis peak in December 2007. (*5) https://www.deepstatedeclassified.com/industrial-production-is-punk/ So we have a 5% gain in the most important part of the real economy vs. 95% in stock market gambling. The absurdity of the stock market growth is further evidenced by the gap between growth of real final sales and stock valuations since 2007 peak. Since then, the former has grown on an average 1.6% per year, while the stock market has delivered annualized growth at levels of 15%. Total industrial production share of the GDP in the US has sunk to 18%. (For comparison, the figure for Russia was 32% and growing.)

Trickle-down, anyone?

It would be false to claim there has not been any trickle-down at all. Millions of people have kept their jobs because of it. But at the same time they have had their real wages squeezed and the overwhelming majority have seen their standards of living drop. Only massive loads of consumer credits and ultra-cheap mortgages have kept up an illusion of superficial prosperity among the middle classes. This debt-fueled prosperity and it’s cursory result, the artificial real estate asset bubble will prove a wolf in sheep’s clothing when the everything-bubble bursts.

There’s been another form of trickle-down, too, a much more real and actually beneficial one. By creating the debt-fueled illusion of prosperity, the Western central banks have actually subsidized China, Russia and all of the emerging world as they have flushed their export goods on the global markets where the Western nations have picked it all up on borrowed money. Thanks for that, though. At the same time, that has driven production costs up in the West with the consequence that their own industries have been priced out.

The humongous borrowings fail to produce GDP growth

Every year since the last bout of the crisis in 2008, growth of debt in the national economies of each Western country has far exceeded the growth of economic output measured as GDP. Below chart shows just how bad it has been in the US.

The debt and GDP growth curves started to diverge in the late 70s, but from 2000 debt has spiraled out of control delivering preciously little incremental GDP. Deduct the wasteful debt and wasteful spending and there would be no growth whatsoever.

Not only has there been no real GDP growth but even the nominal growth has to a crucial extent been provided for by means of the enormous government borrowings. We see from below table that that in each year from 2008 to 2017 even the nominal GDP growth has been less than the growth of government debt, with 2015 and 2015 as the only exceptions when they were on par.

In the peak crisis years 2008 and 2009, debt growth was a staggering 5.7 and 6.3 times that of GDP growth.

The debt game has been equally miserable all over the West, perhaps with the only exception of Germany, who has wisely refrained from participating, even when egged on by liberal economists calling Germany’s more prudent policy unfair to the gambling nations. Below chart shows how much more the Western governments have borrowed than produced economic growth. The chart covers years 2004 to 2013, but the trend has been the same ever since. GDP growth has been vastly less than the growth of the colossal debtberg.

Note Russia there as the shining exception.

Below chart ranks countries according to their debt burden relative to GDP. And again you see how debtless Russia is compared with the squandering nations.

These charts concerned only government debt, when we add private debt to it, the picture is doubly worse. From the point of view of a national economy it really doesn’t matter in which form the excess debt expands, public or private. In fact, on an average in the West the situation with household debt is equally dire. Below chart tells you just how bad. And again note Russia as the one shining exception.

And it’s no better with corporations, which have throughout the last decade been enjoying mindboggling levels of central bank largesse in form of virtually unlimited interest-free financing. For example, compared to earnings, US bond issuers are about 50% more leveraged now than in 2007. (*6) https://www.zerohedge.com/news/2019-08-24/corporate-debt-risk-flash-crash

Finally, there is the black hole containing trillions and trillions of bankers derivative risks. Deutsche Bank – which was recently placed in emergency care – alone is said to have 49 trillion dollars in exposure to derivatives. These risks alone could take down the whole global financial system. (*7) https://www.zerohedge.com/news/2019-07-20/bank-49-trillion-derivatives-exposure-melting-down-our-eyes

First no real interest, then on to negative yields

One of the many deadly side effects of the central bankers’ practice on gambling with the national economies is that they first eliminated real interest rates (pushed rates below inflation) and then doubled down on the destruction of sound economic principles by cooking up a system with negative yielding bonds (bonds which yield below zero). By now $30 trillion of the $60 trillion US bond market yield below inflation (no real interest) and nearly $17 trillion worth of bonds are in negative yield territory. That’s mostly made up by sovereign debt of Japan and European governments (12 at the moment) but recently the mass of negative yielding corporate bonds has also doubled to $1.2 trillion. Half of the $5 trillion worth of European government bonds sport a negative yield as well as 20% of European investment grade corporate bonds.

Inflation risk

Normally, this kind of excess liquidity artificially put on the market (aka money printing) would have led to high inflation if not hyperinflation. Several factors have helped to keep prices in check. First, it needs to be pointed out, though, that inflation is actually a lot higher than what the government reports. This has been pretty convincingly proven in the case of the United States. (See, for example, (*8) https://www.zerohedge.com/news/2019-08-17/cpi-constantly-understates-inflation-why-will-lead-catastrophe?fbclid=IwAR0byF4lMciG77ItFvkFhftV9qEnkXAuKaj9oYLmnZn5c8C4ds4E8mie7rk). Official statistics may not see it, but people sure feel it.

Secondly, the asset price bubbles in real estate and financial markets in fact represent inflation, it’s just not officially recorded as such. As it is only the 10% (and increasingly, the 1%) who get the money, they spend it on the stuff that counts for them, stocks and real estate. Keeping their loot offshore also helps to dampen inflation at home. The squeeze on the middle classes and stagnating wages, is sadly an important factor in keeping inflation down. Ordinary people just can’t afford to buy.

One should also note, that resulting from the illusionary debt-fueled prosperity and its effect on keeping the local Western currencies artificially high, there has actually been an inflation in wages and production costs, but only in relative terms in comparison with the emerging world. This in turn has led to further offshoring of manufacturing jobs.

A crucial factor, which in the crazy money printing environment has kept consumer goods from hyperinflating has been imports from the emerging Asia and especially China. Huge growth of the Chinese manufacturing industry coupled with massive influx of cheap labor from the rural countryside into the cities enabled China for a couple of decades to constantly increase its exports to the US and Europe and these countries to keep prices down. (Including by domestic industries having to lower prices in competition). With the Trump trade wars and dramatically increasing protectionism, this will change. And it could get very ugly.

Finally, there is an important consideration that few if anyone seem to understand. That is the fact that the US and other Western countries have been able to print the stupendous amounts of money while keeping rates down and without the currency values crashing only because they enjoy local currency monopolies in their respective territories. The USD has of course been enjoying a global monopoly, but that is fast fading. All the other factors mentioned above (and several other ones), have enabled to prop up and prolong these currency monopolies, but there is a limit to everything. In the coming recession, I would expect some of the lesser currencies to lose their monopoly trust and that would shatter the position of the bigger currencies USD and Euro and force them to raise interest rates. I have earlier written more in detail about this in a report titled How the Dollar and Euro Monopolies Destroyed the Real Market Economy. https://www.awaragroup.com/blog/dollar-euro-monopolies-destroyed-market-economy/

The below chart suggests that the Western countries are already on the way to lose their respective currency monopolies. The BRICS countries (Brazil, Russia, India, China, South Africa) now have a combined GDP (measured in PPP, which is the only correct way to measure the relative size of national economies) larger than not only the G7 countries, but the US and Eurozone economies combined.

At its foundation in 1973, the G7 countries had a combined GDP PPP of 50% of the world economy, by today it is down to 30%. In the same time the nominal GDP share of world economy has crashed from 80% to 40%. The currency monopolies came with the economic superiority, it is therefore only natural that with the economic domination goes the currency domination, too. If we haven’t reached the tipping point yet, then that will happen within 5 to 10 years.

In summary, everything else unchanged, the risk of inflation picking up with just a few percentage points could have the entire Western financial systems coming crashing down due to the pressure on interest rates growing. The Fed and the ECB are continuously speaking about their inflation targets and how they want to pump the markets with more liquidity to raise inflation. There could yet be a big surprise in store for them. Interest rates as such could also be the primary trigger (even without inflation first rising), as nations would have to protect their currencies and attract financing for their colossal debtbergs.

Must add as a P.S. that the incipient flight to gold might well be one of the trigger events for those currencies to lose their monopolies. (Gold price is up 20% since May).

Deleveraging will come

These massive borrowings have delivered nothing of tangible value. Now, when the party is nearly over all there is left are the debt bubbles that have hit the roof. The real values of all the assets below bear no relation to the money that went into inflating the balloons. What’s left is economic hardship for 80% of the people, a crumbling infrastructure and simmering social tensions.

The debt saturation point has been reached, therefore this time it will be different, the central bankers have lost their magic wand and won’t be able to renew the debt binge and extend it with one more decade. Instead, there will be a day of reckoning. Governments and corporations will have to put their act together and let the market weed out the failed entities. Those who cannot carry the debt, will have to shed it. There will be bloodbath with defaults, bankruptcies and massive unemployment. – Perhaps a revolution here and there. – There will be no choice, deleveraging must happen.

Now, whether this system will come crashing down or just slowly die as it trundles downhill will not matter all that much. It will eventually die either way. Most people would prefer the slow motion option, but only with the crash would a cure come. Whatever, it has become increasingly difficult to stave off the crash and this time around, the financial markets would take the real economy down with them big time.

The impressive figures on Russia

The question then is, who would be left standing? Naturally, those who are less leveraged. Now, scroll back to have a new look at the above charts on government and household debt. Find the position of Russia there? That’s right. Russia is the country with – by far – the least debt, both public and private. Having after 2014 following sanctions been cut off from the Western debt orgy, even Russian corporations are shielded against a possible Western debt apocalypse.

In a global recession, no country is safe, but Russia looks to have quite a lot going for it in terms of economic advantages. Russia’s national balance sheet is next to none with by far the lowest debt of all major countries. All economic actors, the government, corporations and households are economically solid and minimally leveraged. Not only is the government virtually debtless, but it has again replenished its spectacular forex and sovereign wealth fund reserves. On top of that comes a hefty budget surplus. – Yes, you heard that right, surplus. In a time when all Western countries are in a chronic fight against deficits, you rarely even hear the term budget surplus. And more, Russia runs the world’s third biggest trade surplus. Add to that the current account surplus, and there’s the hat trick in form of your classic triple surpluses. Russia has a lot more going for it, too, as we will see.

Let’s look at Russia’s present financial health report.

Thanks to import substitution (domestic production instead of imports to neutralize sanctions) Russia’s industrial production rose 2.6% year-on-year in June. (USA +1.1%, UK +0.8%, Japan -2.4%, Germany -5.9%). Above, we mentioned that US industrial production was up with as little as a cumulative 5% since 2008 to date. In the same period Russia’s industry grew 18% notwithstanding the hardships of sanctions and sharp drop in oil price. In fact, since 2014 when the sanctions were first imposed, Russia’s industry has grown 12%.

Russia’s merchandise trade surplus for the first half of 2019 was $93 billion, ranking third in the world after China and Germany and before South Korea. Imports were down by 3%, the other side of the coin of growing domestic manufacturing. Even when exports also were slightly down, lower imports will keep the surplus on track to reach levels near $200 billion for the full year, just under last year’s record $212 billion.

Q1 current account surplus clocked in at $33 billion, up 10% over the year.

In this connection, it might be helpful to remind that Russia’s economy is nowhere near as dependent on fossil fuel extraction as it is habitually believed in the West. In fact, oil and gas only account for 10% of Russia’s GDP according to World Bank statistics. (In 2017, total natural resources share of GDP was 10.7%, but that includes minerals and forest, too).

We also need to point out that Russia has an enormous strength by way of being the world’s most self-sufficient major country. Russia has the by far lowest level of imports relative to GDP of all countries, as evidenced by below table. It shows that Russia’s imports as a share of GDP was as low as 7.2%, while the corresponding level for Western European countries was between 30 to 40%. The extraordinary low levels of imports in a global comparison obviously signifies that Russia produces domestically a much higher share of all that it consumes (and invests), this in turn means that the economy is superbly diversified contrary to the claims of most so-called Russia experts.

Despite initial scares, inflation has remained low even when the VAT rate was from the new year raised from 18% to 20%. The rolling 12-month inflation runs at 4.6% but with the declining trend the full year inflation is expected to hit the central bank’s target 4%.

The job market continues strong with record low unemployment levels, while the job participation rate has not deteriorated (so no tricks here). The July reading of 4.6% translates to 3.4 million unemployed, which is low for a country with a population of 146 million. The strength of the labor market was underscored by an increase of real salaries by 3.5% by July. This while disposable income otherwise has remained subdued.

Whereas the US is combating persistent budget deficits (latest reading, a deficit of 4.5% of GDP) – likewise the EU countries – Russia mustered a huge budget surplus equal to 3.4% of the GDP by July this year.

Russia’s foreign exchange and gold reserves have also done a spectacular comeback reaching $520 billion.

The Russia sovereign wealth fund surged in July to reach a value equal to 7.2% of GDP.

Despite the wholesome macroeconomic environment and impressive figures, Russia’s GDP growth has been less than 1% so far this year (year-on-year 0.6% in Q1 and 0.9% in Q2). However, by the looks of it the fundamental economy seems to be growing and modernizing, while the drag on the growth comes from depressed household consumption. What’s more important, though, is that while Russia’s growth is hovering around the 1%, so is that of all of the Western world. (Accuse me of whataboutism if you will, but these things need to be put in perspective). Q2 growth in the Eurozone was 1.1%, with Germany even about to slide into recession. UK clocked in at 1.2% and Japan at 0.4%. (All figures, year-on-year). The US showed only 2% (revised down 28 August) even when fueled by a mountainous budget deficit set to reach $1 trillion for the fiscal year and despite all that easy money the Fed keeps pumping out. Only China remained firmly in growth territory with 6.2%.

But, the real conundrum is, how can Russia produce the same GDP as all the Western countries with their seemingly limitless injections of give-away money? How is it possible that all those trillions and trillions that the Western central bankers have thrown on the economy do not produce any real incremental economic output?

The big disadvantage Russia has compared with the Western countries is the exorbitant real interest rate that the central bank maintains. The steering rate is presently 7.25%, with inflation predicted to be 4%, that translates into a primary real interest of 3.25%. Compare that with the negative real interest – and even negative yields – of competitor countries. As, the Russian central bank has failed to create a real banking sector which would lend according to international standards to the country’s businesses, the ones that are lucky to get a loan at all would look to pay interest at the level of 15% of more (save the largest corporations). The Governor of the Russian Central Bank Elvira Nabiullina does not see this as a problem, though. She has said that instead she would pin her hopes on improving the countries investment climate (sic!). (She calls for improvement of corporate governance, development of human capital, and all kinds of nice things. That would sure do it). (*9) http://ibcongress.com/en/news/nabiullina-nazvala-glavnye-ogranichenija-dlja-razvitija-ekonomiki-rossii/

Just this week, Putin called a high profile meeting with Nabiullina, the minister for economic development Maxim Oreshkin, and the finance minister Anton Sulanov, to express his deep concern with the sluggish GDP growth and stagnating income. No doubt, that the depressed income is not only a drag on the economy but on the president’s popularity. There is only one quick fix for it. The government and the CBR must ditch their overzealous austerity programs. It’s good that Russia is not over leveraged with debt, but certainly some debt would be in order to finance the infrastructure and other national strategic development programs instead of ripping it off people’s backs. Free the funds for raising pensions and public service salaries instead. And most importantly, Nabiullina must lower the rates and not run real interests in excess of 3% when the rest of the developed world is in negative territory. There is no other quick remedy for raising people’s income. That’s Putin’s choice. Hope somebody tells that to him.

In conclusion, we are not saying that Russia would not be hurt by the coming recession, we merely express our confidence that Russia is among the world’s countries best placed to cope with it.

Jon Hellevig, originally from Finland, works and lives in Moscow since the early 1990s. By education lawyer and MBA, Hellevig first worked in Moscow as a financial controller for a Russia-American joint venture engaged in shipment of oil and later became founder together with Russian partners of a business administration and consulting firm. Hellevig has written several books on Russian taxation and labor law. From mid-2000, Hellevig has written books on philosophy and social practices. The combination of his experience of actual life and governance in Russia with the theoretical framework pushed Hellevig to engage in the public debate about Russia’s development path including by way of writing articles for the part of the media, which is interested in the truth. Having at least a working knowledge of seven languages (English, Russian, Finnish, Swedish, Spanish, German, and French), Hellevig has been able to follow first-hand the news across the Western hemisphere. Doing so, he realized a decade or so ago, that all the Western media in unison report the same stories about Russia and circulate the same fabricated scandals in the same words at the same time. Frustrated with the totalitarian style propaganda lies about Russia, Hellevig began to regularly produce fundamental analysis reports on the Russian economy in the wake of the sanctions that the Western powers imposed on Russia following the Ukrainian crisis in 2014

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