China’s Reaction to a US Unannounced visit to Taiwan – PressTV Interview

By Peter Koenig

Global Research, November 24, 2020

Background

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China has reacted strongly to a senior US official’s unannounced visit to Taiwan, warning that it will take legitimate and necessary action according to circumstances.

The Chinese foreign ministry spokesman reiterated Beijing’s firm opposition to any official ties between Taiwan and the US. The reaction came after the media cited sources, including a Taiwanese official, as saying that US Navy’s Rear-Admiral Michael Studeman was on a trip to the self-ruled island. He’s the director of an agency which oversees intelligence at the US military’s Indo-Pacific Command. The administration of US President Donald Trump has recently ramped up support for Taiwan, including with the approval of new arms sales and high-level visits. Beijing has long warned against such moves. China considers Taiwan a breakaway province and maintains its sovereignty over the region under the One-China policy.

Interview of Peter Koenig with Press TV

***

PK

China has of course every right to protest against any visit and any US intervention in Taiwan, be it weapons sales, or provoking conflict over Taiwan self-declared “sovereignty” which it clearly has not, as it is but a breakaway part of Mainland China.

By and large this looks to me like one of Trump’s last Lame Duck movements to do whatever he can to ruin relations between the US and China.

In reality, it will have no impact of significance.
In fact, China’s approach to Taiwan over the past 70 years, has been one of non-aggression. With various attempts of rapprochement – which most of the times were actually disrupted by US interference – as Taiwan is used by the US, not because Washington has an interest in Taiwan’s “democracy’ – not at all – but Taiwan is a tool for Washington to seek destabilizing China – not dissimilar to what is going on in Hong Kong, or Xinjiang, the Uyghur Autonomous Region, or Tibet.

But China’s objectives are long-term and with patience – and not with force.

Just look at China’s recently signed Trade Agreement with 14 countries – the so-called Regional Comprehensive Economic Partnership. This agreement alone is the largest in significance and volume of its kind ever signed in recent history. It covers countries with some 2.2. billion people and controlling about one third of world GDP.

And the US is not part of it.
Worse, the US-dollar is not even a trading currency.
This must upset the US particularly – especially since the 2-year trade war Trump was waging against China resulted in absolutely zilch – nothing – for the US. To the contrary, it pushed China towards more independence and away from the US.

The same applied to Chinese partners, happy to have honest trading partners, not of the western, especially the Washington-type, that dish out sanctions when they please and when they don’t like sovereign countries’ behavior.

So – no worries for China, but geopolitically, of course, they must react to such acts against international rules of diplomacy.

——
PressTV:
What will change under President Biden?

PK

Most likely nothing. To the contrary, Biden’s likely Secretary of Defense, Michèle Flournoy, played an important behind the scene role in the Obama Administration. She has not changed the aggressive position of Obama’s “pivot to Asia” which essentially consisted in surrounding China with weapons systems and in particular stationing about 60% of the US navy fleet in the South China Sea.

Though at this point, it looks like China is but the target of an off-scale aggression by President Trump, in reality, China is part of a long-term policy of the US, not only to contain China, but to dominate China.

As we see, though, to no avail.

Interestingly, China does not respond with counter-aggression, instead she moves steadily forward with new creations, towards an objective that does not seek domination, but a multi-polar, multi-connected world, via, for example, the Belt and Road Initiative (BRI) – not the type of globalization that especially the Biden camp – along with the corporatocracy behind the World Economic Forum (WEF) is seeking.

The US empire is on the decline and China, of course, is aware of it. Washington may be lashing around in its deteriorating times, to create as much damage as possible and to bring down as many nations as they can. Case in point is the constant aggression, sanctions and punishment against Iran and Venezuela – but here too, these two countries are moving gradually away from the west and into the peaceful orbit of China – pursuing after all a shared bright future for mankind.


Peter Koenig is an economist and geopolitical analyst. He is also a water resources and environmental specialist. He worked for over 30 years with the World Bank and the World Health Organization around the world in the fields of environment and water. He lectures at universities in the US, Europe and South America. He writes regularly for online journals such as Global Research; ICH; New Eastern Outlook (NEO) and more. He is the author of Implosion – An Economic Thriller about War, Environmental Destruction and Corporate Greed – fiction based on facts and on 30 years of World Bank experience around the globe.
Peter is also co-author of Cynthia McKinney’s book “When China Sneezes: From the Coronavirus Lockdown to the Global Politico-Economic Crisis” (Clarity Press – November 1, 2020)

Peter Koenig is a Research Associate of the Centre for Research on Globalization.

Flying Dragon, Crashing Eagle

Flying Dragon, Crashing Eagle

November 23, 2020

by Pepe Escobar and first posted at Asia Times

Four geoeconomic summits compressed in one week tell the story of where we stand in these supremely dystopian times.

The (virtual) signing of RCEP in Vietnam was followed by the equally virtual BRICS meeting hosted by Moscow, the APEC meeting hosted by Malaysia, and the G20 this past weekend hosted by Saudi Arabia.

Cynics have not failed to note the spectacular theater of the absurd of having the Top 20 – at least in theory – economies discussing what is arguably the turning point in the world-system linked to a beheading-friendly desert oil hacienda with a 7th century mentality.

The Riyadh declaration did its best to lift the somber planetary mood, vowing to deploy “all available policy tools” (no precise details) to contain Covid-19 and heroically “save” the global economy by “advancing” global pandemic preparedness, vaccine development and distribution – in tandem with debt relief – for the Global South.

Not a peep about The Great Reset – the Brave New World scheme concocted by Herr Schwab of Davos and fully supported by the IMF, Big Tech, transnational Big Capital interests and the oh so benign Prince Charles. Meanwhile, off the record, G20 sherpas moaned about the lack of real global governance and multiple attacks on multilateralism.

And not a peep as well about the real life vaccine war between the expensive Western candidates – Pfizer, Moderna, AstraZeneca – and the much cheaper Russia-China versions – Sputnik V and Sinovac.

What seems to be the case is that any agenda – sinister or otherwise – fits the one-size-fits-all vow by the G20 to provide “opportunities of the 21st century for all by empowering people, safeguarding the planet, and shaping new frontiers.”

The House of Xi

At the G20, President Xi Jinping did not waste the chance – after RCEP, BRICS and APEC – to once again emphasize China’s priorities: multilateralism, support for WTO reform, ample international cooperation on vaccine research and production.

But then, in tandem with reducing tariffs and facilitating the trade of crucial medical supplies, Xi proposed a global health QR code – a sound way to restore global travel and trade: “While containing the virus, we need to restore the secure and smooth operation of global industrial and supply chains.”

Predictably, there were howls about neo-Orwellian intrusion, comparing the QR code with the exceptionally misunderstood Chinese credit system. Herr Schwab’s Great Reset in fact proposes something similar, with even more neo-Orwellian overtones, disguised under an innocent “Covid Pass” app, or highly secure “health passport”.

What Xi has proposed amounts to just a mutual recognition of health certificates, issued by different nations, based on nucleic acid tests. No gene altering vaccines coupled with nanochips. These QR codes, incorporated to health apps, are already used for domestic travel in China.

Chinese officials have made it very clear that Beijing has been working as the representative of the Global South inside the G20. That’s multilateralism in action. And the multilateralist drive extends from RCEP – signed between 15 nations – to the brilliant Sun Tzu maneuver of China now accepting even the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), the successor of the Obama-promoted and Trump-detonated TPP.

This revival – a case of Make TPP Chinese Again – can be envisaged because Beijing not only has mastered how to contain Covid-19 but is also recovering in lightning speed. China will be the only major economy growing in 2020 – de facto leading the world to a tentative post-Covid paradigm.

What the APEC meeting made crystal clear is that with East Asia graphically hitting the economic limelight, as seen with RCEP, much vaunted US “leadership” inevitably diminishes.

APEC promoted a so-called Putrajaya Vision 2040, condensing an “open, dynamic, resilient and peaceful” Asia-Pacific all the way to 2040. That neatly ties in with the three accumulated five-year Chinese plans all the way to 2035, approved last month at the CCP plenum in Beijing.

The emphasis, once again, is on multilateralism and an open global economy.

Few are more capable to capture the moment than Professor Wang Yiwei at the Institute of International Affairs at Renmin University, who wrote the best Chinese book on the Belt and Road Initiative (BRI). Wang stresses how China is in a period of “strategic opportunity” and is now “the most powerful leader of globalization”. China’s emphasis on multilateralism will “activate the connectivity and vitality of a trade platform like RCEP”.

Stranger than fiction

Now compare all of the above with Trump at the G20 tweeting about the election dystopia and privileging golfing instead of discussing Covid-19 containment.

And then there’s

The Elements of the China Challenge, the new 74-page delusional epic concocted by the office of secretary Mike “We Lie, We Cheat, We Steal” Pompeo.

Diplomatic howls comparing it with the notorious George Kennan “long telegram” that codified the containment of the USSR in the Cold War are nonsense. Chinese Foreign Ministry reaction was more to the point: this was concocted by some “living fossils of the Cold War” and is doomed to end up “being consigned to the dustbin of history”.

President Xi Jinping, at RCEP, BRICS, APEC and the G20, concisely laid out the Chinese case: multilateralism, international cooperation on multiple fields, an open global economy, due representation of Global South’s interests.

As we wait for a set of imponderables all the way to January 20, 2021, perhaps an angular approach to what may lie ahead for the world economy is best offered by fiction.

Enter Billions, season 5, episode 2, dialogue written by Andrew Ross Sorkin.

Axe: “You know they call us traders ‘gamblers’. The world’s economy is one big casino, fueled by a giant debt bubble and computer driven derivatives. And there’s only one thing better than being a gambler at a casino.”

Wags: “That’s being the house.”

Axe: “That’s right. There’s a systemized machine out there, sucking capital from localities and injecting it into the global markets, where it can be used to speculate and manipulate. And if something goes wrong there are bailouts and bail-ins, federal aid and easing. Where the government doesn’t hunt you down, but instead gives you a nice soft net to land in.”

Wags: “That’s your answer to the fireside chat: You want to become a bank.”

Axe: “I want to become a bank.”

Wags: “In order to rob it?”

Axe: “In order that I don’t have to.”

The China Moment

The China Moment

November 19, 2020

by Peter Koenig for The Saker Blog

China has achieved the almost impossible – a free trade agreement with 14 countries – the ten ASEAN, plus Japan, South Korea, Australia and New Zealand, altogether 15 countries, including China. The so-called Regional Comprehensive Economic Partnership, or RCEP, was in negotiations during eight years – and achieved to pull together a group of countries for free trade, i.e. some 2.2 billion people, commanding some 30% of the world’s GDP. This is a never before reached agreement in size, value and tenor. The RCEP was signed during the 37th ASEAN Summit on 11 November in Vietnam.

On top of being the largest such trade agreement in human history, it also associates with and binds to the Belt and Road Initiative (BRI), or One Belt, One Road (OBOR), or also called the New Silk Road, which in itself comprises already more than 130 countries and more than 30 international organizations. In addition, China and Russia have a longstanding strategic partnership, containing bilateral agreements that also enter into this new trade fold – plus the countries of the Central Asia Economic Union (CAEU), consisting mostly of former Soviet Republics, are also integrated into this eastern trade block.

The conglomerate of agreements and sub-agreements between Asian-Pacific countries that will cooperate with RCEP, is bound together by for the west a little-understood Asian Pact, called the Shanghai Cooperation Organization (SCO), founded on 15 June 2001 in Shanghai as an intergovernmental organization composed of China, Russia, Kazakhstan, Kyrgyzstan, Tajikistan, and Uzbekistan. The SCO’s purpose is to ensure security and maintain stability across the vast Eurasian region, join forces to counteract emerging challenges and threats, and enhance trade, as well as cultural and humanitarian cooperation.

Much of the funding for RCEP and BRI projects will be in the form of low-cost loans from China’s Asian Infrastructure and Investment Bank (AIIB) and other Chinese and participating countries’ national funding sources. In the hard times emerging from the covid crisis, many countries may need grant assistance to be able to recover as quickly as possible their huge socioeconomic losses created by the pandemic. In this sense, it is likely that the new Silk Road may enhance a special “Health Road” across the Asian Continent.

See map (Wikipedia).

The real beauty of this RCEP agreement is that it pursues a steady course forward, despite all the adversities imposed by the west, foremost the US of A. In fact, the RCEP may, as “byproduct”, integrate the huge Continent of Eurasia that spans all the way from western Europe to what is called Asia and covering the Middle East as well as North Africa, of some 55 million square kilometers (km2).

The crux of the RCEP agreement’s trade deals is that they will be carried out in local currencies and in yuan – no US dollars. The RCEP is a massive instrument for dedollarizing, primarily the Asia-Pacific Region, and gradually the rest of the world.

Much of the BRI infrastructure investments, or New Silk Road, may be funded by other currencies than the US dollar. China’s new digital Renminbi (RMB) or yuan soon being rolled out internationally as legal tender for international payments and transfers, will drastically reduce the use of the dollar. The new digital RMB will become attractive for many countries which are fed up with being subjected to US sanctions, because using the US-dollar, they automatically become vulnerable to being punished with dollar blockages, confiscations of resources, whenever their international “behavior” doesn’t conform with the mandates of Washington’s.

Even country reserves can be stolen, a crime perpetrated by Washington with impunity and with the help of the UK, in full sight of the world, stealing 1.2 billion dollars’ worth of Venezuelan gold deposited with the Bank of England. Only a cumbersome lengthy legal process in UK courts initiated by Venezuela could eventually free the funds to be returned to the jurisdiction of Caracas. This is a warning for many countries, who want to jump the fiat-dollar-ship and join an honest trading and reserve currency, offered by China’s solid and stable economy-backed RMB / yuan.

The dollar is already today in decline. When some 20-25 years ago about 90% of all worldwide held reserve-assets were denominated in US dollars, this proportion has shrunk by today to below 60% – and keeps declining. The emerging international RMB / yuan, together with a RCEP- and BRI-strengthened Chinese economy, may further contribute to a dedollarization, as well as dehegemonization of the United States in the world. Simultaneously and progressively the international digital RMB / yuan may also be replacing the US-dollar / euro reserves in countries’ coffers around the globe.

The US-dollar may eventually return to be just a local US-currency, as it should be. Under China’s philosophy, the unilateral word will transform into a multi-polar world. The RCEP and New Silk Road combination are rapidly pursuing this noble objective, a goal that will bring much more equilibrium into the world.

For the west adapting to this new reality may not be easy. Cooperation instead of competition has never been a western concept or philosophy. For hundreds if not thousands of years the western dominance has left a sad legacy of exploitation of the poor by the rich colonial masters and of bloody wars.

Cooperation instead of competition and warrying for power, is a concept not easily adhered to by the west. It is clearly visible by US-instigated trade wars, and possibly a currency war between the US and China may already be in the making. The FED has vaguely expressed its plans to also launch a digital, possibly cryptic, blockchain-based currency to counter the new RMB / yuan – not yet even launched internationally. Details of the FED’s plans are at the time of this writing not clear.

Having to adapt to the new RCEP, conforming to an agreement among equals, will not come easy for the west. The west will not let go and may use to the utmost possible, its creation and western biased World Trade Organization (WTO), to sabotage as much as possible the RCEP’s trade deals and BRI-infrastructure, as well as cross-border industrial development advances.

The west, led by the US – and always backed by the Pentagon and NATO, may not shy from threatening countries participating in China’s projects, but to no avail. Under Tao philosophy, China will move forward with her partners, like steadily flowing water, constantly creating, avoiding obstacles, in pursuit of her noble goal – a world in Peace with a bright common future.


Peter Koenig is an economist and geopolitical analyst. He is also a water resources and environmental specialist. He worked for over 30 years with the World Bank and the World Health Organization around the world in the fields of environment and water. He lectures at universities in the US, Europe and South America. He writes regularly for online journals such as Global Research; ICH; New Eastern Outlook (NEO) and more. He is the author of Implosion – An Economic Thriller about War, Environmental Destruction and Corporate Greed – fiction based on facts and on 30 years of World Bank experience around the globe.
Peter is also co-author of Cynthia McKinney’s book “When China Sneezes: From the Coronavirus Lockdown to the Global Politico-Economic Crisis” (Clarity Press – November 1, 2020)

Peter Koenig is a Research Associate of the Centre for Research on Globalization.

Syria’s International Conference On Refugees Is A Masterclass In Balancing

12 NOVEMBER 2020

By Andrew Korybko

American political analyst

Syria

The kinetic phase of the Hybrid War of Terror on Syria has mostly drawn to a close, as evidenced by the milestone event of the country hosting an international conference on the return of refugees, which resulted in several significant outcomes that speak to the masterful execution of its “balancing” strategy and raise hope that the Arab Republic will eventually transform into the Eastern Mediterranean terminal point of China’s visionary W-CPEC+ corridor across Eurasia.

Strategically Disarming “Weapons Of Mass Migration”

Syria’s international conference on the return of refugees is a milestone event for the country’s war which shows that the kinetic phase of the Hybrid War of Terror against it has mostly drawn to a close. President Assad’s keynote speech saw the Syrian leader thanking his Russian and Iranian wartime allies for their help getting to this point and encouraging his compatriots abroad to finally return home. He claimed that some of their host countries are exploiting them for financial and other reasons, strongly hinting that they’re being used against their will as “Weapons of Mass Migration” like Ivy League scholar Kelly M. Greenhill earlier described such a phenomenon. In connection with that, President Assad condemned those states which continue to impose illegal sanctions against the Arab Republic, which has disincentivized some refugees from returning home and thus results in artificially perpetuating this historic humanitarian crisis that was initially sparked by their external war of regime change aggression against his people through terrorist means.

Syria’s “Balancing” Act

Thankfully, Syria can count on its Russian and Iranian wartime allies to help reconstruct the ruined country and thus facilitate the return of millions of refugees to their homeland. To this end, Russia promised to allocate $1 billion as well as open up a trade mission in Damascus while Iran suggested setting up an international fund for this purpose. Both countries seem poised to enter into a “friendly competition” with one another for reconstruction contracts and market space which can only work out to Syria’s ultimate benefit. The Arab Republic is therefore expected to retain its carefully calibrated “balancing” act between them, wisely doing its utmost to prevent the emergence of any complete dependence on either of them in the future. This strategy is consistent with what it’s always pursued over the decades and represents its masterful execution which too many other small- and medium-sized states previously attempted but to no avail. Even worse, many of Syria’s peers saw this strategy backfire on them, thus leading to either their ruin or full dependence on one partner.

Full credit goes to Syria’s world-class diplomats for being able to manage such a difficult policy with such success. Not only are they “balancing” between Russia and Iran, but they also managed to attract the important participation of other countries in their international refugee conference, most curious of which for some observers is Pakistan. Those who only casually follow Syrian affairs might have missed it, but Islamabad recently dispatched massive medical aid to the Arab Republic. This and its participation in the international conference show that the “global pivot state” (which the author previously referred to it as) is capable of bold foreign policy moves independent of its close American, Saudi, and Turkish partners. Pakistan, just like Syria, is also practicing its own “balancing” act between its aforementioned three traditional partners and its three newest ones of Russia, China, and Iran. In fact, it can be argued that Pakistan and Syria are in the process of synergizing their respective “balancing” strategies for the betterment of Eurasia.

Pakistan’s Serendipitous Chance In Syria”

To explain, not only is Syria “balancing” between Russia and Iran, but also between India and Pakistan too. Although Damascus and Delhi have a long history of close relations, Presidential Advisor Bouthaina Shabaan told the Hindustan Times in August 2017 that her country is becoming hesitant about India’s role in its reconstruction after Prime Minister Modi’s highly publicized trip to “Israel” where he did everything from sign intergovernmental deals solidifying their de-facto alliance to even walking barefoot with Netanyahu along the beach. The author realized at the time that this is “Pakistan’s Serendipitous Chance In Syria” whereby Islamabad could flex its anti-Zionist credentials to present itself as a much more credible partner than pro-Zionist Delhi in pursuit of strengthening the two state’s historic relations that reached their high point in 1974 after a Pakistani pilot flying a Syrian jet shot down an “Israeli” fighter flying over the occupied Golan Heights. Syria’s diplomats were evidently receptive to Pakistan’s outreaches, hence the steady improvement of ties.

The Winding Road To W-CPEC+

It’s not just nostalgia for their Old Cold War-era ties nor their shared hatred of “Israel” that’s bringing them closer together nowadays, but pro-Chinese Silk Road pragmatism. The China-Pakistan Economic Corridor (CPEC) is the flagship project of China’s Belt & Road Initiative (BRI), and its western branch corridor (W-CPEC+) through Iran has the chance of not only reaching Russia by running parallel with the stalled North-South Transport Corridor (NSTC) across Azerbaijan but can also extend as far as Syria via Iraq. China is the little-discussed third economic force apart from Russia and Iran which is engaged in a “friendly competition” with its partners to develop Syria, and the improvement of Syrian-Pakistani relations as is presently happening could result in W-CPEC+ extending from the Pacific Ocean to the Eastern Mediterranean through Iran, Iraq, and Syria, all of which are allied with one another. It’ll of course take a lot of political will from all sides — not least of all Pakistan — to see this ambitious vision through, but if successful, then it could revolutionize Mideast geopolitics.

All five countries — China, Pakistan, Iran, Russia, and Syria — would benefit from this outcome. The People’s Republic is the world’s second-largest economy and actively eyeing more positions in the Eastern Mediterranean to complement its prospective ones in “Israel”, albeit via more geopolitically reliable mainland routes than the maritime ones connecting it to the self-professed “Jewish State”. Pakistan has an interest in bolstering its credential as the “global pivot state” by having CPEC serve as the platform for integrating Eurasia more closely together. Iran, which is desperately seeking all manner of sanctions relief, is reportedly negotiating a gargantuan economic agreement with China and would certainly benefit by facilitating more East-West trade through its territory. As for Russia, its recent control over Tartus means that it could profit from any Syrian export of Chinese products through that port. As for the Arab Republic itself, its expected benefit is that this vision would accelerate its reconstruction and allow it to finally actualize its pre-war “Five Seas Strategy”.

Concluding Thoughts

All told, Syria’s international conference on the return of refugees was about much more than just its titular topic. Reading between the lines of the details that have since been revealed about this milestone event, it was actually a masterclass in Syria’s “balancing” strategy. The Arab Republic proved that its diplomats are among the most highly skilled in the world after successfully “balancing” between Russia and Iran, as well as India and Pakistan, all with the aim of fulfilling its visionary “Five Seas Strategy” which some argue was partially responsible for provoking the Hybrid War of Terror that’s been viciously waged against it for almost an entire decade already. In the best-case scenario, Syria will eventually serve as the Eastern Mediterranean terminal point of the W-CPEC+ corridor connecting that strategic body of water with the Pacific Ocean via a several-country-long mainland commercial corridor. The successful fulfillment of this vision would revolutionize not only Mideast geopolitics, but also Eurasian geopolitics as a whole, which thus makes it an urgent priority for all.

RCEP hops on the New Silk Roads

Source

RCEP hops on the New Silk Roads

November 16, 2020

by Pepe Escobar with permission and first posted on Asia Times

Ho Chi Minh, in his eternal abode, will be savoring it with a heavenly smirk. Vietnam was the – virtual – host as the 10 Asean nations, plus China, Japan, South Korea, Australia and New Zealand, signed the Regional Comprehensive Economic Partnership, or RCEP, on the final day of the 37th Asean Summit.

RCEP, eight years in the making, binds together 30% of the global economy and 2.2 billion people. It’s the first auspicious landmark of the Raging Twenties, which started with an assassination (of Iran’s Gen. Soleimani) followed by a global pandemic and now ominous intimations of a dodgy Great Reset.

RCEP seals East Asia as the undisputed prime hub of geoeconomics. The Asian Century in fact was already in the making way back in the 1990s. Among those Asians as well as Western expats who identified it, in 1997 I published my book 21st: The Asian Century (excerpts here.)

RCEP may force the West to do some homework, and understand that the main story here is not that RCEP “excludes the US” or that it’s “designed by China”. RCEP is an East Asia-wide agreement, initiated by Asean, and debated among equals since 2012, including Japan, which for all practical purposes positions itself as part of the industrialized Global North. It’s the first-ever trade deal that unites Asian powerhouses China, Japan and South Korea.

By now it’s clear, at last in vast swathes of East Asia, that RCEP’s 20 chapters will reduce tariffs across the board; simplify customs, with at least 65% of service sectors fully open, with increased foreign shareholding limits; solidify supply chains by privileging common rules of origin; and codify new e-commerce regulations.

When it comes to the nitty gritty, companies will be saving and be able to export anywhere within the 15-nation spectrum without bothering with extra, separate requirements from each nation. That’s what an integrated market is all about.

When RCEP meets BRI

The same scratched CD will be playing non-stop on how RCEP facilitates China’s “geopolitical ambitions”. That’s not the point. The point is RCEP evolved as a natural companion to China’s role as the main trade partner of virtually every East Asian player.

Which brings us to the key geopolitical and geoeconomic angle: RCEP is a natural companion to the Belt and Road Initiative (BRI), which as a trade/sustainable development strategy spans not only East Asia but delves deeper into Central and West Asia.

The Global Times analysis is correct: the West has not ceased to distort BRI, without acknowledging how “the initiative they have been slandering is actually so popular in the vast majority of countries along the BRI route.”

RCEP will refocus BRI – whose “implementation” stage, according to the official timetable, starts only in 2021. The low-cost financing and special foreign exchange loans offered by the China Development Bank will become much more selective.

There will be a lot of emphasis on the Health Silk Road – especially across Southeast Asia. Strategic projects will be the priority: they revolve around the development of a network of economic corridors, logistic zones, financial centers, 5G networks, key sea ports and, especially short and mid-term, public health-related high-tech.

The discussions that led to the final RCEP draft were focused on a mechanism of integration that can easily bypass the WTO in case Washington persists on sabotaging it, as was the case during the Trump administration.

The next step could be the constitution of an economic bloc even stronger than the EU – not a far-fetched possibility when we have China, Japan, South Korea and the Asean 10 working together. Geopolitically, the top incentive, beyond an array of imperative financial compromises, would be to solidify something like Make Trade, Not War.

RCEP marks the irredeemable failure of the Obama era TPP, which was the “NATO on trade” arm of the “pivot to Asia” dreamed up at the State Department. Trump squashed TPP in 2017. TPP was not about a “counterbalance” to China’s trade primacy in Asia: it was about a free for all encompassing the 600 multinational companies which were involved in its draft. Japan and Malaysia, especially, saw thought it from the start.

RCEP also inevitably marks the irredeemable failure of the decoupling fallacy, as well as all attempts to drive a wedge between China and its East Asian trade partners. All these Asian players will now privilege trade among themselves. Trade with non-Asian nations will be an afterthought. And every Asean economy will give full priority to China.

Still, American multinationals won’t be isolated, as they will be able to profit from RCEP via their subsidiaries within the 15-nation members.

What about Greater Eurasia?

And then there’s the proverbial Indian mess. The official spin from New Delhi is that RCEP would “affect the livelihoods” of vulnerable Indians. That’s code for an extra invasion of cheap and efficient Chinese products.

India was part of the RCEP negotiations from the start. Pulling out – with a “we may join later” conditional – is once again a spectacular case of stabbing themselves in the back. The fact is the Hindutva fanatics behind Modi-ism bet on the wrong horse: the US-fostered Quad partnership cum Indo-Pacific strategy, which spells out as containment of China and thus preclude closer trade ties.

No “Make in India” will compensate for the geoeconomic, and diplomatic, blunder – which crucially implies India distancing itself from the Asean 10. RCEP solidifies China, not India, as the undisputed engine of East Asian growth amid the re-positioning of supply chains post-Covid.

A very interesting geoeconomic follow-up is what will Russia do. For the moment, Moscow’s priority involves a Sisyphean struggle: manage the turbulent relationship with Germany, Russia’s largest import partner.

But then there’s the Russia-China strategic partnership –which should be enhanced economically. Moscow’s concept of Greater Eurasia involves deeper involvement both East and West, including the expansion of the Eurasia Economic Union (EAEU), which, for instance, has free trade deals with Asean nations such as Vietnam.

The Shanghai Cooperation Organization (SCO) is not a geoeconomics mechanism. But it’s intriguing to see what President Xi Jinping said at his keynote speech at the Council of Heads of State of the SCO last week.

This is Xi’s key quote: “We must firmly support relevant countries in smoothly advancing major domestic political agendas in accordance with law; maintaining political security & social stability, and resolutely oppose external forces interfering in internal affairs of member states under any pretext.”

Apparently this has nothing to do with RCEP. But there are quite a few intersections. No interference of “external forces”. Beijing taking into consideration the Covid-19 vaccine needs of SCO members – and this could be extended to RCEP. The SCO – as well as RCEP – as a multilateral platform for member states to mediate disputes.

All of the above points to the inter-sectionality of BRI, EAEU, SCO, RCEP, BRICS+ and AIIB, which translates as closer Asia – and Eurasia – integration, geoeconomically and geopolitically. While the dogs of dystopia bark, the Asian – and Eurasian – caravan – keeps marching on.

Who’s World Order??

Who’s World Order??
Matthew Ehret is the Editor-in-Chief of the Canadian Patriot Review , Senior Fellow at the American University in Moscow, BRI Expert on Tactical talk, and has authored 3 volumes of ‘Untold History of Canada’ book series. In 2019 he co-founded the Montreal-based Rising Tide Foundation. He can be reached at matt.ehret@tutamail.com

November 16, 2020

By Matthew Ehret for the Saker Blog

In his Foreign Policy article of April 2020, Biden states that he will reverse Trump’s embarrassing foreign policy record by standing up to both China, Russia and other totalitarian nations which represent the three-fold plague of “authoritarianism, nationalism and illiberalism” and “once more have America lead the world”.

Biden went further promising to undo the harm Trump has done to NATO by re-enforcing the military body, extending its influence to the Pacific (which sounds a lot like the Esper/Pompeo doctrine for the Pacific), and even demanded that NATO go harder on Russia stating that “the Kremlin fears a strong NATO, the most effective political military alliance in modern history.”

Considering Biden’s nearly 45 year political record supporting every military intervention in American history, opposing de-segregation, eulogizing pro-KKK Senator Strom Thurmond, passing bills that incarcerated petty drug dealers for life on behalf of the cheap labor prison industrial complex and supported the rampant growth of both Wall Street, Big Pharma and the Big Tech run surveillance state, we should think twice before celebrating this man’s possible entry into the halls of the highest office in the USA.

Biden’s call for renewing the NATO alliance in opposition to Russia and China, his support for reversing Trump’s calls for military reduction in the Middle East and his support for extending NATO in the Pacific mixed with his lifelong track record, forces us to ask if Glen Greenwald was right when he quit the Intercept on November 1 saying:

“If Biden wins, that’s going to be the power structure: A democratic party fully united with neocons, Bush/Cheney operatives, CIA/FBI/NSA Wall Street and Silicon Valley: presenting itself as the only protection against fascism. And much of the left will continue marching behind it.”

As it turns out, Greenwald’s warning was absolutely on point, as the entire intelligence apparatus, Big Tech and mainstream media complex which worked desperately to oust President Trump for 4 years and is currently running a vast voting fraud operation as this is written has given its full backing to the narrative of “an inevitable of a Biden presidency”.

In a Nov. 11 article from Antiwar.com entitled Biden’s Pentagon Transition Team Members Funded by the Arms Industry, journalist Dave DeCamp demonstrates that of the 23 members of Biden’s Pentagon Transition Team, over one third are directly tied to NATO and the Military Industrial Complex.

As facts continue to emerge of the corrupt deep state structure which totally dominates the geriatric hologram known as Joe Biden, it has become obvious that even the few positive remarks Biden made in support of renewing the START treaty with Russia carry little weight.

Ignoring the very real danger of a new civil war due to the fact that either result will be denied its legitimacy by half of the nation, the question must be asked: If Trump is replaced by a Biden Presidency on January 20th, then what will be the effects both on world stability and US-Russia-China relations?

It is good that Biden supports START’s renewal, but an increasing majority of the nations are opting for a multipolar alliance premised on the defense of national sovereignty, the right to use protectionism, and the construction of large scale megaprojects such as the New Silk Road, Polar Silk Road, advanced space exploration and North South Transportation Corridor.

The very protectionist measures which allowed the USA (and every nation of the world for that matter) to build up their industrial base and economic sovereignty are attacked directly by Biden who demands the “taking down of trade barriers and resisting dangerous global slide toward protectionism” (which he goes so far as to assert without evidence “caused the great depression” and “lead to World War II”).

Attacking Trump for being soft on China’s imperial Belt and Road Initiative which Biden states is only an “outsourcer of pollution to other countries by financing billions of dollars worth of dirty fossil fuel energy projects”, Biden then asks: “who writes the rules that govern trade?” and answers: “the United States, not China, should be leading that effort.”

Beyond carbon reduction plans, and information technology investments (AI, 5G, Quantum Computing), there is very little in Biden’s “development outlook” that brings the USA into harmony with this multipolar consensus. His program to support cutting America’s carbon emissions to net zero by 2050 as outlined by the Green New Deal and Great Reset crowd at Davos might appear on the surface to be pro-infrastructure, professing to “create 10 million good new jobs”, but the reality on further inspection is very different.

The sorts of large scale BRI-oriented development projects now transforming more than half of the world which is increasingly operating under a completely different non-US dominated banking paradigm, are based on capital intensive heavy industry, the use of fossil fuels and also nuclear power.

Without these energy sources, then the New Silk Road and its’ sister projects could never work (much like Modi’s anti-BRI OSOWOG doppelganger has proven a total failure both scientifically and economically).

The sort of “green energy revolution” which the Davos technocrats running Biden want to impose onto the world might create short term jobs, but once the solar panels and windmills are built, the quality of energy available to nations stupid enough to walk into this cage will forever suffocate their capacity to sustain their populations and growth potential. In short, it is a green mirage obscuring a very ugly design.

In opposition to this depopulation agenda, Trump’s tendency support for space exploration, reviving protectionism to rebuild America’s lost manufacturing and his supporting large scale infrastructure programs in resolving conflict abroad (including his support for building rail in the Arctic, rail in Serbia and Kosovo, nuclear power in South Africa and Poland etc) is certainly synergistic with the multipolar system led by Russia and China and undeniably brings the USA into harmony with its own better traditions.

Additionally, Trump’s defunding of color revolutionary “civil society” groups in Hong Kong and Belarus won him many enemies from both sides of the pro-Soros isle while supporting the concept of national sovereignty which were major steps towards stability and trust-building with nations of the world who demand their sovereignty be respected as outlined in the UN Charter itself.

Compare this with Biden’s statement that we must “stand with Russian civil society which has bravely stood up time and again against President Vladimir Putin’s kleptocratic authoritarian system” and Biden’s call to host “a global summit for democracy” featuring “civil society organizations from around the world that stand on the frontlines of democracy” including “the private sector, technology companies and social media giants.”

These are the same “Big tech, and media giants” that have given their full backing to the imposition of Biden into the Presidency which have also been used to overthrow nationally elected governments in color revolutionary regime change operations for decades. These the same networks that have suppressed all evidence of systemic vote fraud in the American elections of 2020 and are stoking the fires of a potential new civil war and regime change inside the republic itself.

Whatever the case may be, the coming weeks and months will feature fierce battles that will shape the outcome of world history.

Syria’s International Conference On Refugees Is A Masterclass In Balancing

By Andrew Korybko

Source

The kinetic phase of the Hybrid War of Terror on Syria has mostly drawn to a close, as evidenced by the milestone event of the country hosting an international conference on the return of refugees, which resulted in several significant outcomes that speak to the masterful execution of its “balancing” strategy and raise hope that the Arab Republic will eventually transform into the Eastern Mediterranean terminal point of China’s visionary W-CPEC+ corridor across Eurasia.

Strategically Disarming “Weapons Of Mass Migration”

Syria’s international conference on the return of refugees is a milestone event for the country’s war which shows that the kinetic phase of the Hybrid War of Terror against it has mostly drawn to a close. President Assad’s keynote speech saw the Syrian leader thanking his Russian and Iranian wartime allies for their help getting to this point and encouraging his compatriots abroad to finally return home. He claimed that some of their host countries are exploiting them for financial and other reasons, strongly hinting that they’re being used against their will as “Weapons of Mass Migration” like Ivy League scholar Kelly M. Greenhill earlier described such a phenomenon. In connection with that, President Assad condemned those states which continue to impose illegal sanctions against the Arab Republic, which has disincentivized some refugees from returning home and thus results in artificially perpetuating this historic humanitarian crisis that was initially sparked by their external war of regime change aggression against his people through terrorist means.

Syria’s “Balancing” Act

Thankfully, Syria can count on its Russian and Iranian wartime allies to help reconstruct the ruined country and thus facilitate the return of millions of refugees to their homeland. To this end, Russia promised to allocate $1 billion as well as open up a trade mission in Damascus while Iran suggested setting up an international fund for this purpose. Both countries seem poised to enter into a “friendly competition” with one another for reconstruction contracts and market space which can only work out to Syria’s ultimate benefit. The Arab Republic is therefore expected to retain its carefully calibrated “balancing” act between them, wisely doing its utmost to prevent the emergence of any complete dependence on either of them in the future. This strategy is consistent with what it’s always pursued over the decades and represents its masterful execution which too many other small- and medium-sized states previously attempted but to no avail. Even worse, many of Syria’s peers saw this strategy backfire on them, thus leading to either their ruin or full dependence on one partner.

Full credit goes to Syria’s world-class diplomats for being able to manage such a difficult policy with such success. Not only are they “balancing” between Russia and Iran, but they also managed to attract the important participation of other countries in their international refugee conference, most curious of which for some observers is Pakistan. Those who only casually follow Syrian affairs might have missed it, but Islamabad recently dispatched massive medical aid to the Arab Republic. This and its participation in the international conference show that the “global pivot state” (which the author previously referred to it as) is capable of bold foreign policy moves independent of its close American, Saudi, and Turkish partners. Pakistan, just like Syria, is also practicing its own “balancing” act between its aforementioned three traditional partners and its three newest ones of Russia, China, and Iran. In fact, it can be argued that Pakistan and Syria are in the process of synergizing their respective “balancing” strategies for the betterment of Eurasia.

Pakistan’s Serendipitous Chance In Syria”

To explain, not only is Syria “balancing” between Russia and Iran, but also between India and Pakistan too. Although Damascus and Delhi have a long history of close relations, Presidential Advisor Bouthaina Shabaan told the Hindustan Times in August 2017 that her country is becoming hesitant about India’s role in its reconstruction after Prime Minister Modi’s highly publicized trip to “Israel” where he did everything from sign intergovernmental deals solidifying their de-facto alliance to even walking barefoot with Netanyahu along the beach. The author realized at the time that this is “Pakistan’s Serendipitous Chance In Syria” whereby Islamabad could flex its anti-Zionist credentials to present itself as a much more credible partner than pro-Zionist Delhi in pursuit of strengthening the two state’s historic relations that reached their high point in 1974 after a Pakistani pilot flying a Syrian jet shot down an “Israeli” fighter flying over the occupied Golan Heights. Syria’s diplomats were evidently receptive to Pakistan’s outreaches, hence the steady improvement of ties.

The Winding Road To W-CPEC+

It’s not just nostalgia for their Old Cold War-era ties nor their shared hatred of “Israel” that’s bringing them closer together nowadays, but pro-Chinese Silk Road pragmatism. The China-Pakistan Economic Corridor (CPEC) is the flagship project of China’s Belt & Road Initiative (BRI), and its western branch corridor (W-CPEC+) through Iran has the chance of not only reaching Russia by running parallel with the stalled North-South Transport Corridor (NSTC) across Azerbaijan but can also extend as far as Syria via Iraq. China is the little-discussed third economic force apart from Russia and Iran which is engaged in a “friendly competition” with its partners to develop Syria, and the improvement of Syrian-Pakistani relations as is presently happening could result in W-CPEC+ extending from the Pacific Ocean to the Eastern Mediterranean through Iran, Iraq, and Syria, all of which are allied with one another. It’ll of course take a lot of political will from all sides — not least of all Pakistan — to see this ambitious vision through, but if successful, then it could revolutionize Mideast geopolitics.

All five countries — China, Pakistan, Iran, Russia, and Syria — would benefit from this outcome. The People’s Republic is the world’s second-largest economy and actively eyeing more positions in the Eastern Mediterranean to complement its prospective ones in “Israel”, albeit via more geopolitically reliable mainland routes than the maritime ones connecting it to the self-professed “Jewish State”. Pakistan has an interest in bolstering its credential as the “global pivot state” by having CPEC serve as the platform for integrating Eurasia more closely together. Iran, which is desperately seeking all manner of sanctions relief, is reportedly negotiating a gargantuan economic agreement with China and would certainly benefit by facilitating more East-West trade through its territory. As for Russia, its recent control over Tartus means that it could profit from any Syrian export of Chinese products through that port. As for the Arab Republic itself, its expected benefit is that this vision would accelerate its reconstruction and allow it to finally actualize its pre-war “Five Seas Strategy”.

Concluding Thoughts

All told, Syria’s international conference on the return of refugees was about much more than just its titular topic. Reading between the lines of the details that have since been revealed about this milestone event, it was actually a masterclass in Syria’s “balancing” strategy. The Arab Republic proved that its diplomats are among the most highly skilled in the world after successfully “balancing” between Russia and Iran, as well as India and Pakistan, all with the aim of fulfilling its visionary “Five Seas Strategy” which some argue was partially responsible for provoking the Hybrid War of Terror that’s been viciously waged against it for almost an entire decade already. In the best-case scenario, Syria will eventually serve as the Eastern Mediterranean terminal point of the W-CPEC+ corridor connecting that strategic body of water with the Pacific Ocean via a several-country-long mainland commercial corridor. The successful fulfillment of this vision would revolutionize not only Mideast geopolitics, but also Eurasian geopolitics as a whole, which thus makes it an urgent priority for all.

Pakistan Made A Compelling Case That India Is A State Sponsor Of Terrorism

By Andrew Korybko

Source

Pakistan released a detailed dossier during a press conference on Saturday strongly making the case that India is a state sponsor of terrorism whose intelligence services have weaponized this phenomenon as part of the proxy war that they’re fighting with respect to the UNSC-recognized international Kashmir dispute and against the China-Pakistan Economic Corridor (CPEC), with it now being the responsibility of the international community to investigate these scandalous claims in order to decide whether India deserves to be sanctioned by the Financial Action Task Force (FATF) and other related bodies for its rogue behavior.

This year’s Diwali celebration got off to a very symbolic start after Pakistan shined some light on the dark activities that it accused India of carrying out in the region. Islamabad released a detailed dossier during a press conference on Saturday strongly making the case that India is a state sponsor of terrorism whose intelligence services have weaponized this phenomenon as part of the proxy war that they’re fighting with respect to the UNSC-recognized international Kashmir dispute and against the China-Pakistan Economic Corridor (CPEC), the flagship project of Beijing’s Belt & Road Initiative (BRI). These claims aren’t anything new, but what’s novel is the amount of detail devoted to proving them this time around.

According to Pakistan, Indian diplomatic facilities in Afghanistan are being used to coordinate the training of various terrorist groups on that landlocked country’s territory, including efforts to unite relevant Baloch and Pashtun ones as well as create a new ISIS branch dedicated to attacking Pakistan. Islamabad mentioned names, dates, bank accounts, phone numbers, and other identifying information such as exposing the Indian mastermind of these regionally destabilizing activities to make its case that India is a rogue state whose behavior should be investigated by the international community, which might find it fitting to sanction the country through the Financial Action Task Force (FATF) and other related bodies.

Pakistan’s diplomatic masterstroke puts India in a very uncomfortable position because it had hitherto been the latter making such claims about the former and not the reverse. The comparatively muted reaction from the international community in the 24 hours since the dossier was revealed suggests that they feel uncomfortable about the accusations and aren’t too sure how to respond. India is a close military and economic partner of a growing number of influential players such as the US and “Israel” who might now be embarrassed for so closely associating with a country that’s been convincingly accused of such rogue behavior. At the same time, however, “birds of a feather flock together”, as they say.

For reasons of self-interest, it might turn out that the international community as a whole doesn’t react the same way to Pakistan’s accusations as they’ve done in the past whenever India made similar but much less detailed ones. Nevertheless, what’s most important to pay attention to is how these revelations might shape Chinese-Indian relations considering their clashes along the Line of Actual Control this summer and ongoing state of ever-intensifying cold war. The grand strategic interests of the People’s Republic are directly threatened by India’s Hybrid War of Terror on Pakistan, which aims to destabilize CPEC’s northern and southern access points in Gilgit-Baltistan and Balochistan respectively.

In fact, the timing of this dossier’s release might have been connected to those two countries’ rivalry. To explain, India was handily defeated by China during their clashes over the summer, which might be why it’s doubling down on its proxy war of terrorism against Pakistan in response. After all, Islamabad warned that New Delhi would soon seek to intensify its terrorist efforts in the coming future, so the dossier might have been intended to preemptively thwart that by exposing these plans in order to put pressure on India to reconsider its actions. Of course, it also took plenty of time to assemble all the details that were disclosed, but the timing was at least very convenient from the Pakistani perspective even if it was ultimately coincidental.

All told, the dossier heralds the advent of a new phase of Pakistani diplomacy where Islamabad confidently exposes India’s Hybrid War of Terror on the world stage. Since it can be assumed that China considers these claims credible considering the fact that its interests are directly threatened irrespective of the country’s public reaction (or potential lack thereof in line with its diplomatic traditions), the conclusion can thus far be made that this report already had a significant impact. It might very well end up being the case that Chinese-Indian relations will never return to their former friendliness, especially if Beijing begins to wonder whether Washington might be tacitly supporting New Delhi’s proxy war on CPEC.

China Newsbrief and Sitrep

China Newsbrief and Sitrep

November 10, 2020

Source

By Godfree Roberts – selected from his extensive weekly newsletter : Here Comes China

Infrastructure

The Three Gorges passed all its tests. Flood control, power generation, navigation and water resources utilization are running smoothly. The river dam, flood discharge, energy dissipation, water diversion and power generation, navigation facilities, protective buildings, mechanical and electrical systems are operating normally and stably. The reservoir accumulated 180 billion cubic meters of floodwater, reduced the flood peak by 40 percent, and the lowered flood control pressures in the the Yangtze River. Read full article →

Agriculture

A new record means a one mu (0.067 hectare) rice field can feed five people for a year. Scientists achieved record-breaking yields of 1,500 kg per mu, or 22.5 tonnes per hectare. The strain, named “Sanyou #1”, is known for its high yield and resilience to unfavorable weather conditions. The late-season hybrid rice yield measured on Monday reached 911.7 kg per mu – each mu measures about 0.07 hectares.  Read full article →

Aerospace

China has launched more satellites than any other country this year as of Sept. 30, putting it on track to win the space launch-rate race three years in a row. Through the third quarter of 2020, China has launched a total of 29 satellites. The US by contrast has launched 27 total, launching 10 this quarter. Only SpaceX keeps the US close to China. Read full article →

Useless Idiots?

What really happened at the US Consulate General in Hong Kong when those four young anti-China activists turned up seeking asylum? They were rejected because, as much as they would like to believe they fought the good fight against “tyranny” and merit “protection” for all the sacrifices they made, they are in fact nobodies in the eyes of the unscrupulous and manipulative officials and politicians in Washington who cheered them on and lulled them into a false sense of security that America had their backs. Read full article →

The four Hong Kong activists who sought protection at the US consulate last week had discussed their intentions with consular staff, who gave them the green light to enter the compound before firmly asking them to leave. Three were seeking asylum, while the fourth, who claims to be a US citizen, is accusing the consulate of neglecting its duty to help him.  Read full article →

Long Read: Investing in the Belt and Road

(This article selection is specifically for the explanation on Islamic Finance)

Pakistan BRI Projects

China’s Belt & Road Initiative officially kicked off in 2013, some seven years ago, under the initial title of ‘One Belt One Road’. That was later dropped as it became apparent that the scale of demand for projects would be rather more than single Eurasian and Maritime routes. While there has been some controversy over China’s financing and the exporting of its construction SOEs to build these projects, closer examination of the so-called ‘debt trap’ issue by US Universities such as John Hopkins and William & Mary have revealed this not to be the case; their studies failing to produce any evidence of debt trap problems created by Chinese loans. It is however encouraging that such finance is being monitored and it will help keep Beijing straight. This is good news for Pakistan, as it has been a significant recipient of Chinese infrastructure funding, with US$62 billion being spent on the China-Pakistan Economic Corridor (CPEC) alone.

The China–Pakistan Economic Corridor 

The CPEC is a collection of infrastructure projects that are under construction throughout the country. CPEC is intended to rapidly upgrade Pakistan’s required infrastructure and strengthen its economy by the construction of modern transportation networks, numerous energy projects, and special economic zones. CPEC became partly operational in late 2016 when Chinese cargo was transported overland to Gwadar Port for onward maritime shipment to Africa and West Asia, while certain nationally important power projects came onstream in late 2017.

A vast network of highways and railways are currently being constructed as part of CPEC that will span the length and breadth of Pakistan. Inefficiencies stemming from Pakistan’s current, mostly dilapidated transportation network are estimated by the government to cause a loss of 3.55% of the country’s annual GDP with little investment having been made since the days of the British Raj.

Modern transportation networks built under CPEC will link seaports in Gwadar and Karachi on Pakistan’s southern coast with northern Pakistan, as well as to routes and cities further north in Western China’s Xinjiang Province and onto Central Asia. This includes a 1,100 km motorway being built between Karachi and Lahore, while the Karachi-Peshawar main rail route is being upgraded to allow for high speed train travel.

To the north the Karakoram Highway from Gilgit to Taxkorgan and Kashgar is being completely overhauled while Pakistan’s railway network will also be extended to eventually connect to China’s Southern Xinjiang railway in Kashgar and from there onto China’s national rail system and its majority Muslim Provinces of Xinjiang, Gansu, Qinghai and Ningxia – all of which lie in a West-East axis, following the ancient overland trade routes of the ancient silk road. China’s Muslim population is about 80 million with significant hubs in cities such as Xián and Beijing.

To the West from Xinjiang, China is connected to Kazakhstan, Kyrgyzstan, Afghanistan and Uzbekistan, all Muslim countries. Urumqi, the capital city of Xinjang, is a major Central Asian hub and reaches out via road, rail and air to many Central Asian destinations.

Pakistan’s Export Manufacturing Potential  

What this means for Pakistan – world renowned traders extraordinaire – is that the Belt and Road build in their own country can be used to service the business and human footfall needs now being created in hubs across the country, as well as vastly improved trade interconnectivity with similar cultures and values throughout China and Central Asia.

Pakistan’s south coast Ports also offer shipping access and trade to Southeast Asia including the Muslim countries of Malaysia and Indonesia – offering a combined market of 300 million people. Then there are India’s Muslims – another 172 million. The opportunities for Pakistan’s business export sector to grow and develop are immense.

This is important as Pakistan currently has a growing current account deficit. This is driven by a widening trade gap as import growth outstrips export expansion and could draw down reserves and dampen GDP growth in the medium term. That said, Pakistan is currently undergoing a process of economic liberalization including privatization of all government corporations, being aimed to attract FDI and decrease the budget deficit. Pakistan is generally regarded as one of the ten emerging global economies with a particular focus on its manufacturing hub.

The economy of Pakistan is the 23rd largest in the world in terms of purchasing power parity (PPP), while the country has a significant population of 220 million, and is expected, along with the BRICS nations to be among the world’s largest economies in the 21st century. Clearly, China has been investing in a friendly, emerging and significant economy. So too notably have expatriate Pakistani’s based in the UK and United States, as well as investments coming in from the UAE and Turkey. Investments from the West and mature Asian economies have tended to be big-ticket and restricted to MNC’s – while the CPEC builds, when completed, offer more opportunities for SME’s and medium sized investors as well as the big players.

Islamic Financing

Asian regional hubs have seen what is happening and have begun offering Islamic finance services as part of their portfolio. Hong Kong has been placing Sukuk (Islamic bonds) to raise capital for several years now, some into the billions of dollars. HSBS and Standard Chartered are often utilized as global advisers, with banks such as Malaysia’s CIMB and Abu Dhabi’s National Bank involved in Islamic countries. Singapore has had less success, with DBS closing its Islamic Bank of Asia in 2015 and folding Islamic finance facilities into core operations. Nonetheless, facilities are available in Hong Kong and the regional Muslim economies in Asia.

The major projects China has helped finance and build in Pakistan that would be of interest to Islamic and global financiers and businessmen are as follows:

Pakistan’s Gwadar Port (گوادر بندرگاه) is the deepest sea port in the world, and is under the administrative control of the Maritime Secretary of Pakistan and the operational control of the China Overseas Port Holding Company.  The port is a link between the Belt & Road Initiative and the Maritime Silk Road.

It includes the Gwadar Special Economic Zone currently being built on a 2,292 acre site adjacent to the Port.

The Gwadar SEZ will include manufacturing zones, logistics hubs, warehouses, and display centres and is modelled on the successful Chinese SEZ model which launched cities such as Shenzhen into global recognizance and shipping importance. Business established in the special economic zone will be exempt from Pakistani income, sales, and federal excise taxes for 23 years, while a 40-year tax holiday will be granted for imports of equipment, materials, plants, machinery, appliances and accessories that are to be for construction of Gwadar Port and SEZ.

The SEZ is being completed in three phases. Manufacturing and processing industries should start to be operational by 2025, while further expansion of the zone is intended to be complete by 2030. While the Chinese are building the Gwadar infrastructure, it should be noted that opportunities exist both for foreign investors within the SEZ and especially those who wish to target either the Pakistani domestic market or for reexport manufacturing to take advantage of the lower operational costs.

The good news for manufacturing in Gwadar to sell onto the domestic market are the tax incentives and low worker costs, coupled by the growth of the Pakistani consumer market, which although volatile, and has been impacted by Covid-19, has also been on an upwards trend. Estimates now suggest that Pakistan’s middle class has reached about 16 million. That may be small beer to many, but it is expected to grow, and now would be a good time to develop brands in a total market size of 220 million.

Gwadar SEZ is useful and extremely valuable to investors as component parts will be able to enter the zone duty free, with import duty not payable unless goods enter the domestic market. VAT breaks and refunds are also available to businesses setting up shop there. The fact that English, that global language of commerce, is widely spoken is another ”ease of doing business” advantage. That has been noted, the World Bank stating earlier this year that ‘‘due to a concerted improvement in business regulation, Pakistan climbed 28 places and rose to a rank of 108 in the global ease of doing business rankings in 2020″.

The same economic drivers suggest Gwadar will become an important Asian SEZ and ideal for export manufacturers. Under Chinese and Pakistani management, security will be tight, and the incentives make it attractive.

The other aspect to Gwadar that local Pakistani and their overseas counterparts overseas can make an investment case for are the facilities outside the SEZ and Port. These include business and human services to support these facilities, as well as property investments – they can be expected to significantly increase in the immediate Gwadar area. That is exactly what has happened in Sri Lanka’s Colombo Port City – another BRI project whose time has come. Investors both local and international are putting money into the surrounding area. Profits are being made, and the same will happen at Gwadar.

Gilgit SEZ – Access To China & Central Asia  

The Moqpondass Gilgit SEZ is a priority development under CPEC in Gilgit in Pakistan’s northern Baltistan Province. It borders Afghanistan to the north, China to the northeast, and the Pakistani administrated state of Azad Jammu and Kashmir (AJK) to the south. It covers an area of about 750 acres. Construction work has begun.

The area is naturally rich in precious stones, ore and fruits. The proposed SEZ would be connected with Gilgit Airport, about 30km distant and also scheduled for upgrades as well as being on the route to Sost, the last Pakistani border town to China. It is also connected to the important trade and supply route through to Skardu to the east, itself a Gateway to the Karakorum Mountain range. The town is located on the Indus river, which separates the Karakoram Range from the Himalayas.

The SEZ is being designed for processing marble and granite, iron ore, steel, (to be used in later regional construction projects) other minerals as well as fruit processing and added value such as packaging and so on.

The SEZ is significant as Gilgit has suffered from Taliban attacks in the past and was heavily infested with weapons as a result. There has been a mass cleanup, while the SEZ is intended to give inhabitants the ability to turn their time back towards trade and production and towards relative wealth in what is a naturally productive region. With the China border so close, it is an excellent opportunity. China also wishes to secure the region as train routes and major highways can then pass through to Xinjiang Province.

Securing regional trade and developing wealth creation opportunities in Central Asia and Northern Pakistan is important for Beijing as it, like Pakistan, seeks to deal with the worst aspects of Islamic fundamentalism.

Additional incentives may also come to the region as the Pakistan Government is considering declaring Gilgit-Baltistan as a Province, giving it more funding and a greater status within the country. That would upset India, pre-occupied with a military standoff with China in nearby Ladakh. That said, despite complaints, India is unlikely to interfere. However it would be good news for Gilgit and help advance regional trade, commerce and security. The opening of the Gilgit SEZ would probably coincide with news confirming Provincial status, expected to be ‘soon’. State funds can then be expected to be freed up to further develop the area. Investors can take advantage, as always occurs when following State encouraged funding.

The Karachi to Peshawar Railway

The Karachi–Peshawar Railway Line (کراچی–پشاور مرکزی ریل راستہ) is one of four main railway lines in Pakistan, being operated and maintained by Pakistan Railways. The line begins from Karachi City Station and ends at Peshawar Cantonment Station, with a total length of 1,687 km. It passes 184 railway stations and serves as the main passenger and freight line of the country. 75% of the country’s cargo and passenger traffic uses this route. It is currently undergoing a US$5.4 billion upgrade and renovation as part of CPEC with average rail speeds expected be doubled to 160 kilometers per hour upon completion.

Greater Peshawar Mass Transit System 

The Peshawar Circular Railway (پشاور مداری ریلوے ) Project is an inter-regional commuter rail system for the Greater Peshawar metropolitan area which will connect several industrial and commercial districts within Peshawar to the outlying suburbs and cities of Jamrud, Charsadda, Mardan, Nowshera and later, to Swabi. In August 2016, the regional Government agreed to a US$1.6 billion MoU with the China Communications and Construction Company (CCCC). This railway is expected to resolve transportation problems in the Peshawar region and generate jobs leading to the overall economic revival of the province. It will impact 11 million people in the Peshawar Valley. To the West lies the Khyber Pass to Afghanistan, it is hoped that the proximity will further settle tribal areas and better influence regional trade on a broader scale.

The Karachi-Peshawar Motorway 

The Karachi – Peshawar Motorway is a construction and development of a six lane, access controlled highway of 1,100 km. It is a tolled facility, and originates in Karachi through Motorway M-9 (136 km) to Hyderabad. From Hyderabad onwards, it comprises new build for 345 km to Sukkur, then from Sukkur to Multan follows the left bank of the River Indus for 392 km.

It opened at the end of last year, and is intended to allow speeds of up to 120 kmh. It is Pakistan’s first bi-directional six-lane motorway with an intelligent (smart) transportation function. It cost US$2.9 billion to build and took 36 months. There are 100 bridges, 468 underpasses, 991 culverts, 11 interchanges, six pairs of service areas, five pairs of rest areas, and 24 toll stations. The motorway was divided into seven sections for simultaneous construction. The project was undertaken by the China State Construction Engineering Corporation (CSCEC).

Multan and Sukkur are important cities in Pakistan, and they are now connected by the motorway. Multan is a major area for producing mangoes, dates and other crops, while Sukkur is an important transport hub. The motorway reduces the commuter time between the two cities from 11 hours to less than four hours, thus expediting travel between China and Pakistan.

These are just a handful of the Belt & Road projects that China has invested in Pakistan that are about to come to fruition; there are many more in terms of Special Economic Zones, road, rail and other infrastructure facilities that are being built and that will project Pakistan into an Asian manufacturing hub during this decade. This is further enhanced with China in particular as Pakistan has a Free Trade Agreement with China. Pakistan is also a member of SAFTA, a free trade bloc that also includes Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal and Sri Lanka.   All countries completed the respective Trade Liberalization Program (TLP) under the Phase I and II of SAFTA, meaning that tariffs fell to 0-5 percent on all traded products other than those in the respective ”sensitive” lists. Although there has been some horseplay over what are and are not legitimate ‘sensitive’ products, a further 100 items are due to be exempted from tariffs in 2020. Read full article →

(We regularly include Chris Devonshire-Ellis’ articles partly because he lives in the port of Hambantota–and because he regularly visits Eurasia’s flyover countries.)

Analysis: Political Consciousness – Frans Vandenbosch 方腾波 18.10.2020

Consciousness is defined as the quality or state of being aware, especially of something within oneself. Political consciousness is then the personal awareness or concern for some social or political cause. For certain philosophers, all consciousness is political because in their view, it always is the outcome of politic-economic circumstances, a product of ideological influences. That looks close to the reality, but it is far from complete. Today in 2020 the picture is much more complex.

Four steps to full political consciousness

Without any doubt, most people either straightforward deny or are unaware of the entire economic, political, media and internet influence. With a lot of effort and a strong analytic mind it is nevertheless possible to escape that external influence. Not right away; that process takes time and effort. These are the four steps in the process. Everyone, whether they like it or not, has to go through these four stages:

The honeymoon

This is even for well educated people raised in a political active family, the first step. It is an inevitable stepping stone to a more correct political consciousness. Because of the heavy social pressure and the daily brainwashing by the mainstream media, many, if not most people never escape this first stage.

Ambiguity and doubt; the second step.

After being confronted with the contradictions between the mainstream media story and reality, a form of uncertainty slowly arises. Last week, a friend wrote me in an email: “I can’t believe they’re all lying”. Indeed, they’re all lying. I have not taken the effort to explain him the details; he wouldn’t accept my explanation anyway. Much, if not all what people read in the western mainstream media is pure propaganda. It is meeting all of the 10 features of propaganda as defined by Edward Bernays and his followers.

Awareness, apprehension; the third stage. 

Cracks appear in the image. People are getting aware that most mainstream media do not present real news but only a pre-made fairy-tale. They despise some or all of the western mainstream media and look for alternative media. They scold the media and politicians but are not yet ready to look for the root causes of the decline of democracy, the economy and freedom of speech.

Full political consciousness; the final stage. 

The nirvana of political consciousness. People no longer consume western mainstream media. They have strong indications of the root causes of the decline of their freedom. But they’re also fully aware of Confucius’ “Real wisdom is to know that one can’t know everything”.

Global political consciousness 

It is, as Mark Twain so vividly put it, not just useful but of the utmost importance to travel to other countries. To speak with the local people in their own native language:

Travel is fatal to prejudice, bigotry, and narrow-mindedness, and many of our people need it sorely on these accounts. Broad, wholesome, charitable views of men and things cannot be acquired by vegetating in one little corner of the earth all one’s lifetime.

One of the reasons for the bias within the Anglo-Saxon population is the lingua franca status of their language. They do not feel the same incentive as others to try to speak the native language of their interlocutor. It is only with a deep understanding of the social and economic situation in other countries that political consciousness has a fertile soil to grow.

In this regard, it is remarkable that most Chinese people have a higher political consciousness than Westerners.  There are four main causes for the stronger Chinese awareness. In brief: the Chinese 10 points higher IQ, the Chinese education system based on STEM directions and analytical thinking, the harsh meritocratic selection process and the Western degrading but Chinese increasing Flynn effect.

And even more remarkable is that in general, sociologists are less politically aware than STEM graduates. At first sight this may seem contradictory, but on closer inspection it is very logical. Sociologists are believers, they absorb a way of thinking and pass it on to their audience in a convincing way. STEM graduates, on the other hand, look at things in an analytical way, measure and test, and don’t make a decision until they’ve reviewed enough parameters.

Aldous Huxley, fully aware of Bernays’ work two decennia before him, wrote on 21.10.1949 in a letter to his former student George Orwell, author of ‘1984’: “Within the next generation I believe that the world’s leaders will discover that infant conditioning and narcohypnotic are more efficient, as instruments of government, than clubs and prisons, and that the lust for power can be just as completely satisfied by suggesting people into loving their servitude as by flogging them and kicking them into obedience”

Frans Vandenbosch, Chinese name 方腾波, is a Fleming who lived in China for years where he supported companies in the automotive, medical, electronics and plastics processing sectors. He is cofounder and senior consultant at the International Institute on Governance and Strategy (IIGS) in Beijing and the author of Statecraft and Society in China about grassroots politics in China.


This represents but a fraction of what is included in the Here Comes China newsletter.  If you want to learn about the Chinese world, get Godfree’s newsletter here

The World is Changing: China Launches Campaign for Superpower Status

October 23, 2020

China’s President Xi Jinping (R) and US President Donald Trump. (Photo: File)

By Ramzy Baroud

The outdated notion that China ‘just wants to do business’ should be completely erased from our understanding of the rising global power’s political outlook.

Simply put, Beijing has long realized that, in order for it to sustain its economic growth unhindered, it has to develop the necessary tools to protect itself, its allies and their combined interests.

The need for a strong China is not a novel idea developed by the current Chinese President, Xi Jinping. It goes back many decades, spanning various nationalist movements and, ultimately, the Communist Party. What sets Xi apart from the rest is that, thanks to the unprecedented global influence acquired by Beijing during his incumbency (2013 – present), China is now left with no alternative but to match its ‘economic miracle’ with a military one.

US President, Donald Trump, made the trade deficit between his country and China a cornerstone in his foreign policy agenda even before his rise to power. That aside, it is the military deficit that concerns China most. While world media often focuses on China’s military encroachment in the South China Sea – often dubbed ‘provocations’ – little is dedicated to the massive US military presence all around China.

Tens of thousands of US troops are stationed in the West Pacific and in other regions, creating an encirclement, all with the aim of cutting off the possibility of any Chinese strategic expansion. Numerous US military bases dot the Asia-Pacific map, stationed mostly in Japan, South Korea, Philippines, Singapore, Guam and Australia.

In response to China’s military maneuvers in the South China Sea, the US composed the 2018 National Defense Strategy, which is raising the prospects of military confrontations between the US and its Asian allies on the one hand, and China, on the other. US military expansion soon followed. On September 8, the Wall Street Journal, citing US officials, reported that the Republic of Palau has “asked the Pentagon to build ports, bases and airfields on the island nation”.

It is obvious that the Pentagon would not base such a consequential decision on the wishes of a tiny republic like Palau. The immensely strategic value of the country – spread over hundreds of islands in the Philippine Sea, with close ties to China’s arch-enemy and US ally, Taiwan – makes Palau a perfect choice for yet more US military bases.

This is not new. The rise of China, and its clear intentions to expand its military influence in the Pacific, has irked the US for years. Barack Obama’s administration’s ‘Pivot to Asia’ in 2012 was the genesis of the new American belief regarding the imminent challenges awaiting it in that region. The National Defense Strategy of two years ago was a further confirmation that the focal point of US foreign policy has largely shifted away from the Middle East to the Asia-Pacific.

The compromising language that became a feature in China’s foreign policy throughout the 1980s and 90s is now being supplanted by a different discourse, one of political resolve and unprecedented military ambitions. In his speech at the historic October 2017 Communist Party Congress in Beijing, Xi declared the dawn of a “new era”, one where development and strength must synchronize.

“The Chinese nation … has stood up, grown rich, and become strong. It will be an era that sees China moving closer to center stage and making greater contributions to mankind,” he said.

Since then, Xi has tirelessly aimed to strike the balance between strength, bravery and victory with that of progress, ingenuity and wealth. For the “China dream” to be realized, “it will take more than drum beating and gong clanging to get there.”

The Chinese quest to reach its coveted ‘center stage’ has already been launched in earnest. In the economic realm, the Belt and Road Initiative (BRI) is in full swing. Announced by Xi in 2013, the giant plan hopes to outweigh all traditional trade channels that have been put in place over the course of many years. When completed, the China-led infrastructure network will establish connectivity throughout Asia as well as the Middle East and Africa. If successful, a future China could, once more, become a world-leading hub of trade, technological renovation and, of course, political power.

In contrast, the US has solidified its global dominance largely based on military might. This is why the US counter-strategy is now intently focused on military expansionism. On October 6, US Secretary of Defense, Mark Esper, said that his country’s navy requires more than 500 ships to counter China. Of this number, 355 traditional warfighting vessels are needed by 2035. This future fleet is dubbed “Battle Force 2045”.

Particularly intriguing in Esper’s recent announcement is the claim that by 2045, “Beijing wants to achieve parity with the United States Navy, if not exceed our capabilities in certain areas and to offset our overmatch in several others.” In fact, Beijing already has. China currently has the largest navy in the world and, according to the Pentagon, “is the top ship-producing nation in the world by tonnage.”

By China’s own calculations, Beijing does not need 25 more years to fully change the rules of the game. On October 15, President Xi told the People’s Liberation Army (PLA) Marine Corps to focus their energy on “preparing for war”. Many interpretations have already been made of his statement, some linking it to the US, others to Taiwan, to various South China Sea conflicts and even to India. Regardless, Xi’s language indicates that China does not ‘just want to do business’, but is ready to do much more to protect its interests, even if this means an all-out war.

China’s foreign policy under Xi seems to portray an entirely different country. China now wields enough wealth, economic strategic influence – thus political power – to start the process of strategic maneuvering, not only in the Asia Pacific but in the Middle East and Africa, as well.

Another central piece in Xi’s strategy is to copy the American model and to rebrand China as a stately power, a defender of international law and against global crises. The US’ growing isolationism and failed leadership at the time of the COVID-19 pandemic have been Xi’s perfect opportunity for this new China debut.

The world is changing before our eyes. In the coming years, we are likely to, once more, speak of a bipolar – or, possibly, tri-polar – world, one in which Washington and its allies no longer shape the world for their benefit. In some way, China is well on its way to reclaim its new status.

– Ramzy Baroud is a journalist and the Editor of The Palestine Chronicle. He is the author of five books. His latest is “These Chains Will Be Broken: Palestinian Stories of Struggle and Defiance in Israeli Prisons” (Clarity Press). Dr. Baroud is a Non-resident Senior Research Fellow at the Center for Islam and Global Affairs (CIGA) and also at the Afro-Middle East Center (AMEC). His website is www.ramzybaroud.net

Weekly China Newsbrief and Sitrep

Source

Weekly China Newsbrief and Sitrep

By Godfree Roberts – selected from his extensive weekly newsletter : Here Comes China

The Huawei complete Google alternative is being built out – You will hear about Petal again – Maps, Docs, Search, Browser and probably every app you use.

Huawei solved its map problem with Petal Maps and has just unveiled Huawei Docs, which, supports document viewing and editing of 50 formats including PDF, PPT, and DOC. With real-time syncing enabled by cloud capabilities, Huawei Docs lets users can work on the same document on different devices logged into the same Huawei ID, enhancing the smart office experience. [MORE]

TASS wrote a decent release : Huawei Launches Petal Search, Petal Maps, HUAWEI Docs and More


Digital RMB in use in Shenzenhttps://www.youtube.com/embed/od05YfJyy1E?feature=oembed

Chinese experts see the central bank digital currency (CBDC) as a vital means of facilitating cross-border transactions and expediting the internationalisation of the renminbi. The Chinese central bank announced the commencement of trials of the CBDC in April 2020 across four cities, including Shenzhen, Suzhou, Chengdu and Xiong’an, while in August the Hebei province government issued a notice calling for cross-border e-commerce transactions in Xiong’an to make greater use of the renminbi, as well as exploration of the use of the digital currency for cross-border payments. Pan Helin (盘和林), head of the Digital Economy Research Institute of the Zhongnan University of Economics and Law, said to 21st Century Business Herald that the digital renminbi could be the solution to the current difficulties involved in making cross-border payments.

“At present the main problem with cross-border payments is that the period of time for needed funds to reach accounts is long, the speed is low, fees are high, procedures are numerous and efficiency levels are low,” said Pan. “The biggest advantages of the digital renminbi are convenience, high-efficiency, high timeliness and low cost, and for these reasons it can overcome the existing deficiencies with traditional cross-border payments methods.”

“Survey data indicates that occupation of liquidity is the biggest cost for the SWIFT cross-border payments system. Blockchain technology raises the efficiency of cross-border payments systems, reduces cross-border payments timeframes, and reduces the liquid funds used. The cost for financial institutions to conduct cross-border payments will be reduced.” Liu Bin (刘斌) a financial researcher from the Pudong Reform and Development Research Institute, said that the CBDC could also help to expedite internationalisation of the renminbi, pointing in particular to the following areas of development:

  • Driving the use of the renminbi for trade between China and ASEAN countries and China and Belt and Road countries;
  • At present free trade zones throughout China are exploring cross-border financing, and in future these free trade zones could serve as drivers for international use of the digital renminbi;
  • Overseas consumption by Chinese tourists and travellers could expedite the use and circulation of the digital renminbi abroad, in turn driving the establishment of corresponding systems and coordinating mechanisms abroad. [MORE]

Gross National Happiness

IPSOS: China the happiest nation on earth. Six in ten adults across 27 countries (63%) are happy, according to the latest Ipsos survey on global happiness. Despite the COVID-19 pandemic, the prevalence of happiness at an aggregate level is nearly unchanged from last year. The happiest countries surveyed, i.e., those where more than three out of four adults report being very or rather happy are China, the Netherlands, Saudi Arabia, Canada, France, Australia, Great Britain, and Sweden. Those where fewer than one in two adults say they are happy are Peru, Chile, Spain, Argentina, Hungary, and Mexico. Among 29 potential sources of happiness measured, people across the world are most likely to derive “the greatest happiness” from:

  • My health/physical well-being (cited by 55% globally)
  • My relationship with my partner/spouse (49%)
  • My children (49%)
  • Feeling my life has meaning (48%)
  • My living conditions (45%)

In comparison to the pre-pandemic survey conducted last year, the sources of happiness that have most gained in importance globally pertain to relationships, health, and safety. On the other hand, time and money have ceded some ground as drivers of happiness. Globally, happiness is as common this year as it was last year, dipping by just one percentage point from 64% to 63%. However, it has increased by five points or more in six countries, namely China, Russia, Malaysia, and Argentina, while it has decreased by five points or more in 12 countries, most of all Peru, Chile, Mexico, and India.

The happiness leader in 2020 is China, where 93% say they are happy (up 11 points from last year and moving from third place), followed by the Netherlands (newly added this year) with 87%, and Saudi Arabia with 80% (up two points). Canada and Australia, last year’s leaders in happiness, register a notable drop this year: Canada with 78% (down eight points) drops to fourth place in a tie with France (down two points) and Australia with 77% (down nine points) falls to sixth place.  [MORE]


SOCIETY

Farmer Li Zhifang is being crowned a “Food Hero” by the Food and Agriculture Organization of the United Nations on World Food Day, for his efforts to keep food cheap and accessible to residents of Wuhan during the worst period of the city’s lockdown during the pandemic. Li is marketing manager of the Wuhan Qiangxin Vegetable Production and Marketing Cooperative. He strived to keep food prices affordable and food supplies accessible during an unprecedented lockdown in the city where the virus began and many were forced to stay in their homes for months. Vegetable prices rocketed at the beginning of the pandemic when the situation was still developing.

Li not only persuaded farmers to sell produce at “normal” prices but also helped to increase deliveries from cooperative members to supermarkets, including Hema, also known as Freshippo, a Chinese fresh food supermarket chain owned by Alibaba. During the pandemic Li volunteered to help the local government distribute necessities to districts where there was a shortage of fresh food, including communities adjacent to the Huanan Seafood Market, thought to be the original epicenter of the pandemic, which people were scared to visit. “Someone must be brave when the battle begins,” the “Food Hero” was quoted as saying. People have praised Li for his contribution and commented that his new title on this special day shows that the UN approves of China’s anti-pandemic policies. “As a Wuhan local, I could buy vegetables at reasonable prices during the lockdown, thank you so much!” “Wuhan relied on these ordinary heroes to recover from the pandemic,” one popular comment read.  [CAIXIN].


ASEAN

US-funded agitators in Bangkok block downtown roads–like US-funded agitators in Hong Kong.

Anti-government protesters in Thailand organized by billionaire-led opposition parties and funded by the US government have openly committed themselves to the “Hong Kong model” of US-funded unrest. This includes targeting public infrastructure to create maximum instability for the vast majority of the public and undermining Thailand’s economic recovery in the wake of the global COVID-19 economic crisis. The protesters are committed to the “Hong Kong model” despite it having failed completely in Hong Kong itself with most of the leaders either sidelined, jailed, or having fled abroad. Knowing that this model is ultimately doomed to failure but committing to it and the violence, disruption, and instability it implies anyway – does not even benefit the opposition itself – because it surely did not benefit Hong Kong’s opposition but instead effectively ended it.

Instead – this campaign of violence and disruption will only benefit the protest’s US government sponsors – a US government determined to undermine China and its allies and obstruct Asia’s global rise. Overturning Thailand’s political order is one goal – but simply dividing and destroying Thailand to deny China a prosperous ally is another.  As it stands now – Thailand is benefiting from China’s regional and global rise – but should protesters have their way – the economy they claim to be upset about will be further destroyed as they seek to cut ties with China – Thailand’s largest trade partner, foreign investor, source of tourism, and a key partner in several important infrastructure projects including a high-speed rail network that will connect Thailand to China via Laos. The US and Europe have no ability now nor will in the foreseeable future to replace the ties Thailand currently enjoys and is benefiting from with China. Tony Cartalucci – ATN. [MORE]


Geopolitics

Guest Editorial by Billy Bob, who is married, 45 years old, with two young kids 8 and 6 and a full time job in the medical field that he does not want to lose:  “For several years now I have been using my facebook profile to raise awareness and engage with folks regarding the political and economic issues facing our planet”.

As the West churns out more anti-China propaganda designed to defame, malign, and facilitate the decoupling of Western industry from China, China continues to lead the world in economic growth and expansion. The problem for the Western ruling class is that China is too lucrative of an industrial base and too appealing as a perspective market for any self respecting capitalist to turn their back on such potential wealth creation. For individual Western capitalists to forgo the opportunity to profit in China, actual laws will need to be passed and it’s not clear the ruling class can get it’s act together in order to legislatively force such a decoupling. It’s not as if there exists a central authority that can simply dictate the behavior of thousands of industries and force them to sacrifice their own individual economic well being on the alter of the greater class interest. Even though Trump has attempted to tweet such demands in the past, absent some major catalyzing event, there is no way individual Western industries are going to relinquish the incredible economic opportunities that China offers. Such are the limitations of Western capitalism.

What the ruling class really needs is “a new pearl harbor”. This time however, instead of Islam, China must be declared the alleged antagonist. Only then can the ruling class force individual intransigent corporations and industries to decouple from China and move to India.

Too be sure, India is central to the West’s grand strategy. Modi and his Western backers have convinced themselves that they can emulate China’s success and that they can offer the world’s capitalists all the economic opportunities that China can but without the threatening demonstration of the superiority of social planning and a Marxist Leninist communist party.

The ruling class will never be able to pull this off. China has already won. The West will flail around in futility and watch as the inevitability of China’s economic steam engine rolls over every malign strategy and subversive plot they conceive. China has set in motion a chain of events that is impossible to curtail. The speed at which China is growing and developing and the wisdom with which it is overcoming every challenge is both astonishing and exhilarating.

If you are curious about the information which informs my statements and perspective, if you haven’t internalized and don’t honestly embrace wholeheartedly the truth about China I shared above, you are cheating yourself and missing out on the knowledge that represents the most important development of our lifetime. In 1936, Mao comprehended a faint shadow of what was to come when he wrote:

“When China finally wins her independence, then legitimate foreign trading interests will enjoy more opportunity than ever before. The power of production and consumption of 450,000,000 people is not a matter that can remain the exclusive interest of the Chinese, but one that must engage the many nations. Our millions of people, once really emancipated, with their great latent productive possibilities freed for creative activity in every field, can help improve the economy as well as raise the cultural level of the whole world.”
***

The Two Undersides to Geo-Politics: At the explicit level, today’s geo-political struggle is about the U.S. maintaining its primacy of power – with financial power being a subset to this political power. Carl Schmitt, whose thoughts had such influence on Leo Strauss and U.S. thinking generally, advocated that those who have power should ‘use it, or lose it’. The prime object of politics therefore being to preserve one’s ‘social existence’. But the prize that America truly seeks is to seize is all global standards in leading-edge technologies, and to deny them to China. Such standards might seem obscure, but they are a crucial element of modern technology. If the cold war was dominated by a race to build the most nuclear weapons, today’s contest between the U.S. and China — as well as vis à vis the EU — will at least partly be played out through a struggle to control the bureaucratic rule-setting that lies behind the most important industries of the age. And those standards are up for grabs. So where are we in this de-coupling struggle? China’s intent now is not simply to refine and improve on existing technology, but to leapfrog existing knowledge into a new tech realm– by discovering and using new materials that overcome present limits to microprocessor evolution. They may just succeed – over next the three years or so – given the huge resources China is diverting to this task (i.e. with microprocessors). This could alter the whole tech calculus – awarding China primacy over most key areas of cutting-edge technology. States will not easily be able ignore this fact – whether or not they profess to ‘like’ China, or not.

Which brings us to the second ‘underside’ to this geopolitical struggle. So far, both the U.S. and China have kept finance largely separate to the main de-coupling. But a substantive change may be underway: The U.S. and several other states are toying with Central Bank digital currencies, and FinTech internet platforms are beginning to displace traditional banking institutions. Pepe Escobar notes: “Donald Trump is mulling restrictions on Ant’s Alipay and other Chinese digital payment platforms like Tencent Holdings…and, as with Huawei, Trump’s team is alleging Ant’s digital payment platforms threaten U.S. national security. More likely is that Trump is concerned Ant threatens the global banking advantage the U.S. has long taken for granted. Team Trump is not alone. U.S. hedge fund manager Kyle Bass of Hayman Capital argues Ant and Tencent are “clear and present dangers to U.S. national security that now threaten us more than any other issue.”

The point is two-fold: China is setting the scene to challenge a fiat dollar, at a sensitive moment of dollar weakness. And secondly, China is placing ‘facts on the ground’ — shaping standards from the bottom up, through widespread overseas adoption of its technology. Just as Alipay has made huge inroads across Asia, China’s ‘Smart Cities’ project diffuses Chinese standards, precisely because they incorporate so many technologies: Facial recognition systems, big data analysis, 5G telecoms and AI cameras. All represent technologies for which standards remain up for grabs. Thus ‘smart cities’, which automate multiple municipal functions, additionally helps China’s standards drive .[MORE]


Selections and editorial comments by Amarynth.  (Go Get that newsletter – it again is packed with detail and each time I read it, it becomes clearer that a country of 1.4 billion people requires a specific kind of cohesion to make it work.  And so far, it is working.  Take a look for fun – How to take a 7,000-tonne building for a walk).

Win-Win vs Lose-Lose: The Time Has Come for the World to Choose

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Matthew Ehret October 21, 2020

It is a tragedy of our age that society has been locked in a zero-sum operating system for so long that many people living in the west cannot even imagine a world order designed in any other way… even if that zero sum system can ultimately do nothing but kill everyone holding onto it.

Is this statement too cynical?

It is a provable fact that if one chooses to organize their society around the concept that all players of a “great game” must exist in a finite world of tension as all zero-sum systems presume, then we find ourselves in a relatively deterministic trajectory to hell.

You see, this world of tension which game masters require in today’s world are generated by increasing rates of scarcity (food, fuel, resources, space, etc). As this scarcity increases due to population increases tied to heavy doses of arson, it naturally follows that war, famine, and other conflict will rise across all categories of divisions (ethnic, religious, linguistic, gender, racial etc). Showcasing this ugly misanthropic philosophy during a December 21, 1981 People Magazine Interview, Prince Philip described the necessity of reducing the world population stating:

“We’re in for a major disaster if it isn’t curbed-not just for the natural world, but for the human world. The more people there are, the more resources they’ll consume, the more pollution they’ll create, the more fighting they will do. We have no option. If it isn’t controlled voluntarily, it will be controlled involuntarily by an increase in disease, starvation, and war.”

When such a system is imposed upon a world possessing atomic weapons, as occurred in the wake of FDR’s death and the sabotage of the great president’s anti-colonial vision, the predictably increased rates of conflict, starvation and ignorance can only spill over into a global war if nuclear superpowers chose to disobey the limits and “norms” of this game at any time.

Perhaps some utopian theoreticians sitting in their ivory towers at Oxford, Cambridge or the many Randian think tanks peppering foreign policy landscape believed that this game could be won if only all nation states relinquished their sovereignty to a global government… but that hasn’t really happened, has it?

Instead of the relinquishing of sovereignty, the past decade has seen a vast rise of nationalism across all corners of the earth which have been given new life by the rise of China’s Belt and Road Initiative and broader multipolar alliance. While these impulses have taken on many shapes and forms, they are united in the common belief that nation states must not become a thing of the past but rather must become determining forces of the world’s economic and political destinies.

The Case of the Bi-Polar USA

Unfortunately, within the USA itself where nationalism has seen an explosive rise in popularity under President Trump, the old uni-polar geopolitical paradigm has continued to hold tight under such neocon carryovers as Mike Pompeo, Defense Secretary Esper, CIA director Gina Haspel and the large caste of Deep State characters still operating among the highest positions of influence on both sides of the aisle.

While I genuinely believe that Trump would much rather work with both Russia, China and other nations of the multipolar alliance in lieu of blowing up the world, these aforementioned neocons think otherwise evidenced by Pompeo’s October 6 speech in Japan. In this speech, Pompeo attempted to rally other Pacific nations to an anti-Chinese security complex known as the Quad (USA, Australia, Japan and India). With his typically self-righteous tone, Pompeo stated that “this is not a rivalry between the United States and China. This is for the soul of the world”. Earlier Pompeo stated “If the free world doesn’t change Communist China, Communist China will change us.”

Pompeo’s efforts to break China’s neighbours away from the Belt and Road Initiative have accelerated relentlessly in recent months, with territorial tensions between China and Japan, Vietnam, South Korea, Malaysia, Taiwan, Indonesia, Philippines, Indonesia and Brunei being used by the USA to enflame conflict whenever possible. It is no secret that the USA has many financial and military tentacles stretching deep into all of those Pacific nations listed.

Where resistance to this anti-China tension is found, CIA-funded “democracy movements” have been used as in the current case of Thailand, or outright threats and sanctions as in the case of Cambodia where over 24 Chinese companies have been sanctioned for the crime of building infrastructure in a nation which the USA wishes to control.

Pompeo’s delusional efforts to consolidate a Pacific Military bloc among the QUAD states floundered fairly quickly as no joint military agreement was generated creating no foundation upon which a larger alliance could be built.

China’s Foreign Minister Wang Yi accurately called out this regressive agenda on October 13 saying:

“In essence [the Indo-Pacific Strategy] aims to build a so-called Indo-Pacific NATO underpinned by the quadrilateral mechanism involving the United States, Japan, India and Australia. What it pursues is to trumpet the Cold War mentality and to stir up confrontation among different groups and blocs and to stoke geopolitical competition. What it maintains is the dominance and hegemonic system of the United States. In this sense, this strategy is itself an underlying security risk. If it is forced forward it will wind back the clock of history.”

China Responds with Class

China’s response to this pompous threat to peace was classy to say the least with Wang Yi teaming up with Yang Jiechi (Director of China’s Central Foreign Affairs Commission) who jointly embarked on simultaneous foreign tours that demonstrated the superior world view of “right-makes-might” diplomacy. Where Wang Yi focused his efforts on Southeast Asia with visits to the Philippines, Indonesia, Cambodia, Malaysia, Laos, Thailand and Singapore, Yang Jiechi embarked on a four-legged tour of Sri Lanka, the UAE, Algeria and Serbia.

While COVID assistance was a unifying theme throughout all meetings, concrete economic development driven by the Belt and Road Initiative was relentlessly advanced by both diplomats. In all bilateral agreements reached over this past week, opportunities for cooperation and development were created with a focus on diminishing the points of tension which geopolticians require in order for their perverse “game” to function.

In Malaysia, the $10 billion, 640 Km East Coast Rail link was advanced that will be completed with China’s financial and technical help by 2026 providing a key gateway in the BRI, as well as two major industrial parks that will service high tech products to China and beyond over the coming decades.

After meeting with Wang Yi on October 9, Indonesia’s Special Presidential Envoy announced that “Indonesia is willing to sign cooperation documents on the Belt and Road Initiative and Global Maritime Fulcrum at an early date, enlarge its cooperation with China on trade and investment, actively put in place currency swap arrangements and settlements in local currency, step up the joint efforts in human resources and disaster mitigation, and learn from China’s fight against poverty.”

In Cambodia, a major Free Trade Agreement was begun which will end tariffs on hundreds of products and create new markets for both nations. On the BRI, the New International Land-Sea Trade corridor and Lancang-Mekong Cooperation plans were advanced.

In the Philippines, Wang Yi and Foreign Minister Locsin discussed Duterte’s synergistic Build Build Build program which reflects the sort of long term infrastructure orientation characteristic of the BRI which are both complete breaks with the decades-long practices of usurious IMF loans which have created development bottlenecks across the entire developing sector.

In Thailand Wang Yi met with the Thai Prime Minister where the two accelerated the building of the 252 km Bangkok-Korat high speed rail line which will then connect to Laos and thence to China’s Kunmin Province providing a vital artery for the New Silk Road.

In the past few years, the USA has been able to do little to counter China’s lucrative offers while at best offering cash under the rubric of the Lower Mekong Initiative established under the Hillary-Obama administration in preparation for the Asia Pivot encirclement of China that was unleashed in 2012. This was done as part of a desperate effort to keep China’s neighbors loyal to the USA and was meant to re-enforce Obama’s Trans-Pacific Partnership which Trump thankfully destroyed during his first minutes in office.

Yang Jiechi’s Four-Legged Tour

In Sri Lanka, a $90 million grant was offered by China which will be devoted to medical resources, water supplies and education and which the Chinese embassy website stated “will contribute to the well being of Sri Lankans in a post-COVID era”. Another $989 million loan was delivered for the completion of a massive expressway stretching from Central Sri Lanka’s tea growing district to the Port of Hambanota. While this port is repeatedly used by detractors of the BRI like Pompeo as proof of the “Chinese debt trap”, recent studies have proven otherwise.

In the UAE, the Chinese delegation released a press release after meeting with Prince Zayed al-Nahyan stating: “Under the strategic guidance of President Xi and the Abu Dhabi crown prince, China will enrich the connotation of its comprehensive strategic partnership with UAE, cement the political trust and support, promote alignment of development strategies, and advance high-quality joint construction of the Belt and Road.”

In Algeria, Yang offered China’s full support for the New Economic Revival Plan which parallels the Philippines’ Build Build Build strategy by focusing on long term industrial growth rather than IMF-demands for privatization and austerity that have kept North Africa and other nations backward for years.

Finally in Serbia which is a vital component of the BRI, the Chinese delegation gave its full support to the Belgrade-Budapest railway, and other long term investments centered on transport, energy and soft infrastructure, including the expansion of the Chinese-owned Smederevo Steel Plant which employs over 12 000 Serbians and which was saved from bankruptcy by China in 2016. By the end of the trip, Prime Minister Brnabic announced: “Serbia strongly supports China both bilaterally and multilaterally, including President Xi Jinping’s Access and Roads Initiative and the 17+1 Cooperation Mechanism, in the context of which most of Serbia’s infrastructure and strategy projects will be realized”

The Spirit of Win-Win Must Not Be Sabotaged

Overall, the spirit of the growing New Silk Road is fast moving from a simple east-south trade route towards a global program stretching across all of Africa, to the Middle East, to the High Arctic and Latin America. While this program is driven by a longer view of the past and future than most westerners realize, it is quickly becoming evident that it is the only game in town with a future worth living in.

While China has committed to the enlightened idea that human society is more than a “sum of parts”, the Cold Warriors of the west have chosen to hold onto obsolete notions of human nature that suppose we live in a world of “each vs. all”. These obsolete notions are premised on the bestial idea that our species is destined to do little more than fight for diminishing returns of scraps in a closed -system struggle for survival where only a small technocratic elite of game masters calling themselves “alphas” control the levers of production and consumption from above.

Thus far, President Trump has distinguished himself from other dark age war hawks in his administration by promoting a foreign policy outlook centered on economic development. This has been seen in his recent victories in achieving economic normalization between Serbia and Kosovo, and endorsing the Alaska-Canada railway last month. With the elections just around the corner and the war hawks flying in full force, it is clear that these piecemeal projects, though sane and welcomed are still not nearly enough to break the USA away from its course of war with China and towards a new age of win-win cooperation required for the ultimate survival of our species.

The limits of Chinese power

October 08, 2020

The limits of Chinese power

By Pepe Escobar, posted with permission and first posted at Asia Times

Everything about US-China hinges on the result of the upcoming US presidential election.

Trump 2.0 essentially would turbo-charge its bet on decoupling, aiming to squeeze “malign” China on a multiple Hybrid War front, undermine the Chinese trade surplus, co-opt large swathes of Asia, while always insisting on characterizing China as evil incarnate.

Team Biden, even as it professes no desire to fall into the trap of a new Cold War, according to the Dem official platform, would be only slightly less confrontational, ostensibly “saving” the “rules-based order” while keeping Trump-enacted sanctions.

Very few Chinese analysts are better positioned to survey the geopolitical and geoeconomic chessboard than Lanxin Xiang: expert on relations between China, US and Europe, professor of History and International Relations at the IHEID in Geneva and director of the Center for One Belt, One Road Studies in Shanghai.

Xiang got his PhD at SAIS at Johns Hopkins, and is as well respected in the US as in China. During a recent webinar he laid out the lineaments of an analysis the West ignores at its own peril.

Xiang has been focusing on the Trump administration’s push to “redefine an external target”: a process he brands, “risky, dangerous, and highly ideological”. Not because of Trump – who is “not interested in ideological issues” – but due to the fact that the “China policy was hijacked by the real Cold Warriors”. The objective: “regime change. But that was not Trump’s original plan.”

Xiang blasts the rationale behind these Cold Warriors: “We made a huge mistake in the past 40 years”. That is, he insists, “absurd – reading back into History, and denying the entire history of US-China relations since Nixon.” And Xiang fears the “lack of overall strategy. That creates enormous strategic uncertainty – and leads to miscalculations.”

Compounding the problem, “China is not really sure what the US wants to do.” Because it goes way beyond containment – which Xiang defines as a “very well thought of strategy by George Kennan, the father of the Cold War.” Xiang only detects a pattern of “Western civilization versus a non-Caucasian culture. That language is very dangerous. It’s a direct rehash of Samuel Huntington, and shows very little room for compromise.”

In a nutshell, that’s the “American way of stumbling into a Cold War.”

An October Surprise?

All of the above directly connects with Xiang’s great concern about a possible October Surprise: “It could probably be over Taiwan. Or a limited engagement in the South China Sea.” He stresses, “Chinese military people are terribly worried. October Surprise as a military engagement is not unthinkable, because Trump may want to re-establish a war presidency.”

For Xiang, “if Biden wins, the danger of a Cold War turning Hot War will be reduced dramatically.” He is very much aware of shifts in the bipartisan consensus in Washington: “Historically, Republicans don’t care about human rights and ideology. Chinese always preferred to deal with Republicans. They can’t deal with Democrats – human rights, values issues. Now the situation is reversed.”

Xiang, incidentally, “invited a top Biden adviser to Beijing. Very pragmatic. Not too ideological.” But in case of a possible Trump 2.0 administration, everything could change: “My hunch is he will be totally relaxed, may even reverse China policy 180 degrees. I would not be surprised. He would turn back to being Xi Jinping’s best friend.”

As it stands, the problem is “a chief diplomat that behaves as a chief propagandist, taking advantage of an erratic president.”

And that’s why Xiang never rules out even an invasion of Taiwan by Chinese troops. He games the scenario of a Taiwanese government announcing, “We are independent” coupled with a visit by the Secretary of State: “That would provoke a limited military action, and could turn into an escalation. Think about Sarajevo. That worries me. If Taiwan declares independence, Chinese invade in less than 24 hours. “

How Beijing miscalculates

Unlike most Chinese scholars, Xiang is refreshingly frank about Beijing’s own shortcomings: “Several things should have been better controlled. Like abandoning Deng Xiaoping’s original advice that China should bide its time and keep a low profile. Deng, in his last will, had set a timeline for that, at least 50 years.”

The problem is “the speed of China’s economic development led to hot headed, and premature, calculations. And a not well thought of strategy. ‘Wolf warrior’ diplomacy is an extremely assertive posture – and language. China began to upset the US – and even the Europeans. That was a geostrategic miscalculation.”

And that brings us to what Xiang characterizes as “the overextension of Chinese power: geopolitical and geoconomic.” He’s fond of quoting Paul Kennedy: “Any great superpower, if overstretched, becomes vulnerable.”

Xiang goes as far as stating that the Belt and Road Initiative (BRI) – whose concept he enthusiastically praises – may be overstretched: “They thought it was a purely economic project. But with such wide global reach?”

So is BRI a case of overstretching or a source of destabilization? Xiang notes how, “Chinese are never really interested in other countries’ domestic policies. Not interested in exporting a model. Chinese have no real model. A model has to be mature – with a structure. Unless you’re talking about export of traditional Chinese culture.”

The problem, once again, is that China thought it was possible to “sneak into geographical areas that the US never paid too much attention to, Africa, Central Asia, without necessarily provoking a geopolitical setback. But that is naiveté.”

Xiang is fond of reminding Western analysts that, “the infrastructure investment model was invented by Europeans. Railways. The Trans-Siberian. Canals, like in Panama. Behind these projects there was always a colonial competition. We pursue similar projects – minus colonialism.”

Still, “Chinese planners buried their head in the sand. They never use that word – geopolitics.” Thus his constant jokes with Chinese policy makers: “You may not like geopolitics, but geopolitics likes you.”

Ask Confucius

The crucial aspect of the “post-pandemic situation”, according to Xiang, is to forget about “that wolf warrior stuff. China may be able to re-start the economy before anyone else. Develop a really working vaccine. China should not politicize it. It should show a universal value about it, pursue multilateralism to help the world, and improve its image.”

On domestic politics, Xiang is adamant that “during the last decade the atmosphere at home, on minority issues, freedom of speech, has been tightening to the extent that it does not help China’s image as a global power.”

Compare it, for instance, with “unfavorable views of China” in a survey of nations in the industrialized West that includes only two Asians: Japan and South Korea.

And that brings us to Xiang’s The Quest for Legitimacy in Chinese Politics – arguably the most important contemporary study by a Chinese scholar capable of explaining and bridging the East-West political divide.

This book is such a major breakthrough that its main conceptual analyses will be the subject of a follow-up column.

Xiang’s main thesis is that “legitimacy in Chinese tradition political philosophy is a dynamic question. To transplant Western political values to the Chinese system does not work.”

Yet even as the Chinese concept of legitimacy is dynamic, Xiang stresses, “the Chinese government is facing a legitimacy crisis.” He refers to the anti-corruption campaign of the past four years: “Widespread official corruption, that is a side-effect of economic development, bringing out the bad side of the system. Credit to Xi Jinping, who understood that if we allow this to continue, the CCP will lose all legitimacy.”

Xiang stresses how, in China, “legitimacy is based on the concept of morality – since Confucius. The communists can’t escape the logic.

Nobody before Xi dared to tackle corruption. He had the guts to root it out, arrested hundreds of corrupt generals. Some even attempted two or three coups d’état.”

At the same time, Xiang is adamantly against the “tightening of the atmosphere” in China in terms of freedom of speech. He mentions the example of Singapore under Lee Kuan Yew, an “enlightened authoritarian system”. The problem is” China has no rule of law. There are a lot of legal aspects though. Singapore is a little city-state. Like Hong Kong. They just took over the British legal system. It’s working very well for that size.”

And that brings Xiang to quote Aristotle: “Democracy can never work in bigger countries. In city-states, it does.” And armed with Aristotle, we step into Hong Kong: “Hong Kong had rule of law – but never a democracy. The government was directly appointed by London. That’s how Hong Kong actually worked – as an economic dynamo. Neoliberal economists consider Hong Kong as a model. It’s a unique political arrangement. Tycoon politics. No democracy – even as the colonial government did not rule like an authoritarian figure. Market economy was unleashed. Hong Kong was ruled by the Jockey Club, HSBC, Jardine Matheson, with the colonial government as coordinator. They never cared about people in the bottom.”

Xiang notes how, “the richest man in Hong Kong only pays 15% of income tax. China wanted to keep that pattern, with a colonial government appointed by Beijing. Still tycoon politics. But now there’s a new generation. People born after the handover – who know nothing about the colonial history. Chinese elite ruling since 1997 did not pay attention to the grassroots and neglected younger generation sentiment. For a whole year the Chinese didn’t do anything. Law and order collapsed. This is the reason why mainland Chinese decided to step in. That’s what the new security law is all about.”

And what about that other favorite “malign” actor across the Beltway – Russia? “Putin would love to have a Trump win. The Chinese as well, up to three months ago. The Cold War was a great strategic triangle. After Nixon went to China, the US sat in the middle manipulating Moscow and Beijing. Now everything has changed.”

Western Lockdown to Shut Down China

Western Lockdown to Shut Down China

October 06, 2020

 by Leif Johnson for The Saker Blog

The present lockdown of the Western world and much of the Third World is an attack on China. Here is how it works:

  1. Slash Chinese export earnings. The Chinese economy is heavily export-oriented. Seventeen percent of all China’s enormous production is shipped to countries that now, either cannot afford imports, or whose buying power is reduced from months of massive unemployment. What remains of Chinese exports will fetch lower prices. This comes after China’s export market to its largest trading partner, the U.S., was slapped by 10 to 25% import duties, beginning 2018.
  2. Bankrupt the Chinese Belt and Road projects. The Chinese export of capital (Belt and Road) for railways, waterways, dams, ports, power stations and other infrastructure improvements in 138 nations in the world, is estimated at three trillion dollars. These projects are expected to be paid for by user fees. Because many Third World and other countries may be unable to repay those loans, China’s losses could be in the trillions.
  3. Attack Chinese commerce world-wide. To halt Chinese competition especially in electronics, companies such as Huawei and TikTok are banned in the U.S. and Britain, and the Chief Financial Officer of Huawei is jailed. Chinese scientists and students are deported, while American sanctions against Iran and Venezuela are designed to cut petroleum exports to China.

Of these, by far the greatest damage to the Chinese economy has been the lockdown; that damage will increase as world economies decline. This economic vacuum will put an extraordinary strain on the Chinese export industries and banking system.

There are two more major areas of attacks:

Military: The U S. has sent an enlarged fleet, including two aircraft carriers, into Chinese coastal waters. Australia is now building a base on a forward island confronting China, Japanese and Korean militaries have been beefed up and Japan may allow nuclear weapons on their territory. The U.S. has increased its military spending especially on advanced and nuclear weapons.

Chinese defense against such threats will be a military buildup costing an additional two or three hundred billion a year. This buildup entails a shift from peace-time capital and consumer goods to the military sector—a serious economic drain.

Propaganda: Hostile measures taken against China will be dressed up as the fight for “democracy,” “openness,” free trade,” “free enterprise,” “justice,” “rule of law,” “international rules,” “human rights,” “anti-terrorism,” “reform,” “anti-corruption” and “anti-communism.” We, especially North Americans, should expect human rights stories from Hong Kong and Xinjiang, yearly memorialization of the massacre at Tienanmen Square, documentaries on persecutions of Christians, Buddhists, the Dalai Lama and… don’t forget Tibet. And what about Chinese pollution that could destroy the planet? And what about the Chinese Communist Party, the most execrable, dangerous, evil organization in the world, towards which people of the West should direct an Orwellian hatred?

These attacks come at an inopportune time. China is embracing large scale automation requiring large capital outlays, while at the same time suffering natural disasters including the swine flu, widespread infestation of the dreaded Fall Army Worm, and devastating floods and droughts.

Is it possible that the Anglo-American financial elite had the power to convince nations worldwide to lock down? Well, they control the UN, WHO, the world organs of mass media, worldwide military deployment, world finance, and the Dollar Empire’s elaborate political, drug, crime, financial, propaganda and cultural networks. Euro-oligarchs collaborate (usually) with this system.

What do they hope to achieve?

We can put aside the easier answers like “world domination,” New World Order, corporate greed, financial control, 1984-style mind control, surveillance state. It is much more fundamental: The world Dollar Empire, and its predecessor British Empire, have ruled much of the world for 400 years. China has emerged as the most powerful challenger to that Empire. If China cannot be destroyed, the Dollar Empire will be vanquished.

Ranked from most desirable to least, here is what I believe the Western merchant-bankers hope to gain.

Most desirable: A regime change in China, whereby the government is overthrown in favor of a Dollar Empire vassal regime. A revolt of the Chinese people against a government that has lifted 800 million people out of poverty is very unlikely. However, military force is not out of the question. Foreign Affairs magazine, (September-October, 2020, p. 156) wrote: “By upgrading their already substantial capabilities in this domain [unmanned submersibles], the United States and its allies would highlight the possibility of a maritime blockade of China.”

Next best: To convince China to adopt financial and political measures amenable to Dollar Empire domination. In the words of former Goldman Sachs banker and Treasury Secretary Henry Paulson Jr., (Council on Foreign Relations newsletter, 5/19/20):

China must move to a “market-driven economy, improve corporate governance, and develop efficient, well-regulated financial markets that earn the respect of international investors, so that Beijing can eliminate capital controls and turn the RMB [renminbi] into a market-determined currency.”

In other words, de-regulation, lifting of capital and bank controls, opening the Chinese currency, the renminbi, to international speculation, “free trade,” “free markets” and IMF and WTO conditionalities, designed to open the huge Chinese economy to Dollar Empire looting—as occurred in Russia in 1992-1998. But the Chinese have found a recipe for national success (industrial capitalism), and that fire-belching dragon, the Chinese Communist Party, guards the gate against renewed imperialist looting.

Least: The Dollar System can achieve the third level of options: a combined economic (lockdown, sanctions, trade and financial war), military (NATO, Five Eyes, 7th fleet) and political (ethnic/jihadist subversion, drugs, propaganda) attack on the Chinese economy. That will retard China’s growth and reduce its world power.

***

Instead of strife, bloodshed and terrible destruction, why doesn’t the Western financial elite join with China in solving the world crises of poverty, refugees and war; why not together explore the frontiers of medicine, science and space? While China might be amenable to collaboration with the West, the oligarchs of the West are locked against it. After all, it is they who created the poverty, refugees and war, and it is they who have spent the post-WWII years dismantling industry, sending much of it to China.

China is a successful, developing economy; the West is an unsuccessful, deteriorating economy. China is based on industrial capitalism; the West is based on merchant-banking capitalism. China invests its capital in industrial plant and equipment and infrastructure; the West invests in financial instruments.

The Chinese seek increased industrial and agricultural production to satisfy people’s needs. The Dollar Empire steals the wealth of nations to create speculative profits. The Chinese system creates capital. The Western system destroys capital. The Chinese System never has financial crashes; the Western System suffers devastating crashes rescued by levies on the population. Chinese industrial capitalism raises the living standard of the population; the West’s financial capitalism lowers the living standard.

The destruction of capital is the hallmark of merchant-banker rule.

Consider the following example: The grain cartel buys products from farmers and sells at a profit. That profit is real capital (no matter how exploitative) because the profit was made on real merchandise being sold.

The cartel does not invest that real profit in agricultural production. It pours its profits into investment funds, banks, off-shore funds, which are largely invested in speculative paper—securitized paper, derivatives, indexes—all of which represents no real goods. It re-invests the paper profits and receives more paper profits. Thus the merchant-banker system sucks capital out of productive agricultural, industrial and commercial enterprise into non-productive financial channels. That is the destruction of capital. It is a misnomer to call this speculative system “capitalism.” It is a cancer. It uses the forms of capitalism, but it destroys capital, just as cancer uses the nutrients of the body but destroys the body.

This is a “system.” It takes capital from the economy (society as a whole), and destroys it by investing in paper (nothing). This is how it thrives. All governments, laws, academia, social mores, mass media, culture and, of course, economics and finance are shaped by this system. It cannot change. It cannot create new productive enterprises. It cannot compete with China, only impede China’s growth.

***

This is “end game” for the governing oligarchy. This is their Götterdämmerung, their Armageddon. In the death throes of their 400-year-long reign, they will impose a desperate economic, financial and social reorganization which the World Economic Forum calls the “Great Reset.”

One of the world’s most prominent merchant-banker organizations, the World Economic Forum, issued a report, titled:

“This is Now the World’s Greatest Threat—And It’s Not Coronavirus”

  • “Affluence is the biggest threat to our world according to a new scientific report.
  • “True sustainability will only be achieved through drastic lifestyle changes.
  • “The World Economic Forum has called for a ‘great reset’ of capitalism in the wake of the pandemic.

“A detailed analysis of environmental research has revealed the greatest threat to the world: affluence… we have to change our affluent lifestyles and reduce overconsumption in combination with structural change.” (Mind you, this is written by the world’s most wealthy individuals.)

With lockdown-caused destitution, unemployment, lack of food and shelter for hundreds of millions of people worldwide, one would expect that the WEF would be satisfied that “overconsumption” had been sufficiently curbed. However, they know there is still substantial wealth in the American and European middle classes that can be tapped for the post-lockdown economy. They have big plans to get rid of that “overconsumption.”

The first task is to reduce unemployment, now probably 25 million long-term jobless in the U.S. Make-work projects will be “green” and “sustainable” (low technology). This will be paid for by taxing the middle class.

The second task, their true and ultimate agenda, is to create an all-out war economy—the final attempt to terrify the East into submission. This will bring extreme austerity and repression.

The “structural change” mentioned in the World Economic Forum report was made explicit by UN Secretary General Antonio Guterres in his “International Mother Earth Day” message:

“First, the huge amounts of money to be spent on recovery from the coronavirus must deliver new jobs and businesses through a clean, green transition.

“Second, where taxpayers’ money is used to rescue business, it must tied to achieving green jobs and sustainable growth.

“Third, fiscal firepower must drive a shift from the grey to the green economy, empowering societies and people to be more resilient.

“Fourth, public funds should be used to invest in the future, not the past, and flow to sustainable sectors and projects that help the environment and the climate…

“Fifth, climate risks and opportunities must be incorporated into the financial system as well as all aspects of public policy making and infrastructure.”

The World Economic Forum chieftains could not be more pleased. Changeover to “green” sustainability would bring a great reduction in “affluence” by heavily raising the price of energy making everything, from agriculture to industry to transportation, grossly more expensive. Furthermore, to pay the “huge amounts of money to be spent on recovery,” will require heavy tax burdens, or social services spending cuts. The Western populations will not be told their sacrifices are made to thwart China and collapse world industry, but rather, made to “save the planet.” The theory of the Green Revolution is that the West will continue to dismantle its industry to meet climate deadlines while China will be forced, by world public opinion, to follow suit.

The “Green Revolution” will soon dissolve into a total war policy. Sacrifices imposed by the “final solution” military buildup against the East (Russia-China bloc) will strip the remaining wealth of the people. Taxes, inflation, interest rates, will rise as the nation is deprived of health care, education, public services, pensions and Social Security. The “global warming” foe will turn into the Yellow Peril foe.

Totalitarian destruction of our freedoms will be as dread as those of Hitler Germany. Free speech will be considered a security risk, neighbors will spy on neighbors, thousands will disappear or be assassinated. Race riots will be used to “divide and conquer.” Electronic spying will be ubiquitous, as will be preventive detention. All the police state measures used against foreign populations by the military, State Department, intelligence agencies and hired mercenaries and drug mafias, will be turned against Americans.

***

America does not deserve this. America was the first nation to overthrow the shackles of the merchant-banker British Empire. America was the first nation to lay the basis for an industrial republic. America became the most free, equal and magnanimous nation in the world which triggered a century-long battle between the industrial American System and the merchant-banking British System. The American System built a great nation.

Henry C. Carey (1793-1879), chief economic advisor to US President Abraham Lincoln and author of The Harmony of Interests (1851), America’s long-forgotten anti-imperialist manifesto.

Apostles of the American System included Alexander Hamilton, Mathew Carey, John Quincy Adams, Henry Clay, Nicholas Biddle, Henry Carey, and Abraham Lincoln. The American System was succinctly described by Abraham Lincoln in an election palm card: “My program, like an old lady’s dance, is short and sweet: I am for a protective tariff, a national bank and internal improvements.”

In 1851, Henry Carey (The Harmony of Interests, p. 217) summarized America’s role in the world as follows:

“Two Systems are before the world; the one looks to increasing the proportion of persons and of capital engaged in trade and transportation, and therefore to diminish the proportion engaged in producing commodities with which to trade, with necessarily diminished return to the labour of all; while the other looks to increasing the proportion engaged in the work of production… with increased return to all, giving to the labourer good wages, and to the owner of capital good profits…

“One looks to pauperism, ignorance, depopulation, and barbarism; the other to increasing wealth, comfort, intelligence, combination of action, and civilization. One looks towards universal war; the other towards universal peace.

“One is the English System; the other we may be proud to call the American System, for it is the only one ever devised, the tendency of which was that of ELEVATING while EQUALIZING the condition of man throughout the world.

“Such is the true MISSION of the people of these United States…”

Let American history be our guide as we restore that mission.

الأطلسي في القوقاز بعد خسارته المتوسط والخليج…!

محمد صادق الحسيني

يحاول الأميركي الذي تهشمت صورته الدولية وانكسرت كلّ موجاته المتتالية على بوابات الشام وتخوم بغداد وأسوار صنعاء… بعد أن عجز في شرق المتوسط، وفشل في هرمز، فضلاّ عن باب المندب في تحقيق اختراق مهمّ ضدّ محور المقاومة وتحالف القوى المناهضة للأحادية الأميركية…

نقل مسرح عملياته إلى القوقاز عبر مخلبه العثماني لتحقيق الأهداف التالية:

١ – تحويل القوقاز إلى جسر عبور لقوات الناتو من البحر الأسود الى بحر الخزر لإعاقة دفاعات القوات الروسية عبر نهر الفولغا (خط الدفاع الأول في صدّ أيّ حرب عالمية)

٢ – محاولة ربط أربيل المتحالفة مع تل أبيب بباكو المتحالفة هي الأخرى مع الكيان الصهيوني عبر الحاضنة التركية الأردوغانية لوضع إيران (شمال غرب) في وضع قوس او هلال يُطبق على القوة الإيرانية الصاعدة حاملة مشروع العبور الى فلسطين لتحريرها.

٣ – حماية خطوط نقل الغاز الأذربيجانية والطرق السريعة التي تنطلق من باكو عبر جورجيا وصولاً الى تركيا.

واليكم تفاصيل الأهداف المباشرة والبعيدة المدى للعدوان الأميركي الاطلسي (العثماني) الإسرائيلي على القوقاز:

ليست هي المرة الأولى، التي تحاول فيها قوى الاستعمار الغربية السيطرة على منطقة القوقاز، لأسباب استراتيجية واقتصادية، بسبب امتلاكها كميات كبيرة من النفط، في اربعينيات القرن الماضي، مضافاً اليها الغاز في القرن الحالي.

اذ انّ زعيم الرايخ الثالث، ادولف هتلر، قد وقع أمراً عسكرياً، بشنّ حملة عسكرية لاحتلال منطقة القوقاز كاملة، وذلك بتاريخ ٢٨ / ٦ /١٩٤٢، أسماها: الحملة الزرقاء او المهمة الزرقاء بلغة هتلر الالمانية.

وقد جرّد هتلر لهذه الحملة القوات التالية:

– مليون جندي ألماني.

– ألف ومائتين وثلاثة وستين دبابة.

– سبعة عشر ألفاً وخمسة وثلاثين مدفع ميدان.

– ألف وستمائة وأربعين قاذفة قنابل ومقاتلة اعتراضية.

ولكن كلّ هذه القوات عجزت عن تحقيق ايّ تقدم، في المعركة التي استمرت من ٢٨/٦/١٩٤٢ وانتهت بتاريخ ١٩/١١/١٩٤٢، عندما نجحت الجيوش السوفياتية بتدمير كلّ القوات المُشار إليها أعلاه وفرض الحصار الشامل على الجيش السادس الألماني، في منطقة ستالينغراد، ذلك الحصار الذي انتهى بتدمير الجيش الألماني السادس (بقيادة مارشال الدبابات الالماني باولوس) وإبادته بالكامل وتحرير منطقة ستالينغراد.

ان ما يجري حالياً، من عدوان أميركي أطلسي، عبر مشاركة تركيا المباشرة فيه، إسرائيلي سعودي خليجي، ليس سوى نسخة عن حملة هتلر الزرقاء، ذات الأهداف القريبة جداً من أهداف النازية الالمانية، لا بل هي اكثر شموليةً من اهداف المانيا النازية.

نقول ذلك لانّ ما يجري حالياً، من عدوان شامل على جمهورية أرمينيا، عبر الرئيس الأذري، إلهام علييڤ وزوجته مِهربان التي عيّنها نائبةً له، وهما الأكثر فساداً في العالم، لا يمكن وصفه (العدوان) بحربٍ او نزاعٍ بين أرمينيا وأذربيجان وإنما هو عدوان شامل، على منطقة القوقاز وما بعد بعد القوقاز.

اذ انّ هذا العدوان، حسب ما أفادت مصادر استخبارية مختصة ومتخصصة بشؤون القوقاز ومستندة الى معلومات دقيقةٍ، ميدانيةً والكترونية، يستهدف المحاور التالية:

أولاً: إيران.

انّ أهمّ الأهداف الفورية، التي تطمح قوى العدوان الأميركي الأطلسي الإسرائيلي الى تحقيقها، هي جرّ إيران الى حرب إقليمية في منطقة القوقاز وشمال غرب إيران على وجه الخصوص، وذلك لاستنزافها في حرب لا ناقة لها فيها ولا جمل. فالقصف المدفعي الذي تعرّضت له بلدة محمد صالح، في محافظة، خدا آفارين الحدودية الإيرانية أكثر من مرة، منذ بدأ العمليات العسكرية في منطقة ناغورنو كاراباخ، لم يكن قصفاً عن طريق الخطأ، سواء البشري او الحسابي، بل انه كان عملية قصف مدفعي مبرمج نفذتها بطارية مدافع هاون يديرها ضباط مدفعية «إسرائيليون»، في داخل الأراضي الأذرية، بهدف استدراج ردّ مدفعي إيراني توريطاً للأخيرة. وما التسريبات التي تنشرها المصادر الاستخبارية «الإسرائيلية» والخليجية/ السعودية، حول استنفار الحرس الثوري الإيراني، وتجهيزه لكتيبة مدفعية ميدان وكتيبة دبابات للردّ على مصادر النيران، إلا دليلاً اضافياً على أهداف العدوان.

ثانياً: روسيا.

انّ روسيا اليوم مستهدفةً، تماماً كما كان الاتحاد السوفياتي مستهدفاً آنذاك، خاصة اذا ما اخذنا بعين الاعتبار قيام الولايات المتحدة وحلف شمال الاطلسي، بضخ آلاف من عناصر داعش المسلحين، عبر تركيا الى أذربيجان، وتسريبها من هناك الى كافة مناطق القوقاز وما بعد القوقاز، ايّ شرقاً باتجاه اوزبكستان وتركمانستان وقرغيزيا وطاجيكستان قرب الحدود الصينيه، ثم شمالاً، باتجاه الجمهوريات الاتحادية الروسية، مثل جمهورية داغستان والشيشان وإنغوشيا وجمهورية شمال أوسيتيا وجمهورية كاباردينو / بالكاريا / وجمهورية الشركس، وكلها جمهوريات من جمهوريات الاتحاد الروسي. الامر الذي يجعل من خلق حالة عدم استقرار دائمة على حدود روسيا الجنوبية، وربما حتى داخل حدودها الجنوبية، أمراً في غاية الخطورة الاستراتيجية، اذ انّ هذا التهديد قد يصل الى دعم المعسكر الأطلسي الأميركي لمحاولات انفصالية في هذه الجمهوريات، كما حدث في بداية تسعينيات القرن الماضي في جمهورية الشيشان، التي شهدت حربين دمويتين فشلت خلالهما المخططات الاميركية في تحقيق أهدافها. وهو ما يعتبر تهديداً استراتيجياً مباشراً لروسيا لا يمكنها السكوت عليه.

اذن، ها نحن نرى أهداف هذا العدوان تصل الى ما وراء القوقاز، ايّ الى هدف تفتيت الاتحاد الروسي وإخضاع جمهورياته للهيمنة الأميركية الأوروبية، حيث لا بدّ ان نرى هذه المخططات مقترنة مع الجهود الأطلسية الأميركية المتواصلة، لضم أوكرانيا وجورجيا الى عضوية حلف شمال الاطلسي، احكاماً لتطويق روسيا الاستراتيحي، نظراً لما تقوم به دول هذا الحلف، من استفزازات مستمرة ضدّ روسيا، من البحر الأسود جنوباً (محاولات طائرات الاستطلاع والقاذفات الاستراتيجية الأميركية اختراق الأجواء الروسية باستمرار انطلاقاً من قواعدها في تركيا ورومانيا وبلغاريا)، وصولاً الى نفس هذا النمط من الاستفزازات، عبر الأجواء الأوكرانية والبولندية واللتوانية وأجواء لاتفيا واستونيا في الغرب، وصولاً الى مدينة لينينغراد، على بحر البلطيق، شمال غرب روسيا.

ايّ انّ كلّ ما ذكر أعلاه يؤكد انّ الهدف، مما يجري في منطقة كاراباخ، هو تحويل القوقاز الى منطقة عدم استقرار دائم، مما يستنزف طاقات روسيا المالية والعسكرية، في ما لو نجحت قوى العدوان، في التمكن من إقامة وتثبيت بنى تحتية قادرة، لداعش وغيرها من المسمّيات الإرهابية، في أذربيجان بدايةً ليتوسع هذا الوجود الى مناطق أخرى في الخاصرة الجنوبية لروسيا.

ولكن ما فشل في تحقيقه الزعيم النازي الألماني عام ١٩٤٢ لن ينجح في تحقيقه أحفاده الأطلسيين وأتباعهم، من صهاينة وأعراب، لا من خلال هذا العدوان الممنهج ولا من خلال التآمر المساند لهذا العدوان، الذي تمثل في مسرحية «تسميم» المعارض الروسي نافالين، التي تتواصل فصولها حالياً، كما تتواصل مؤامرات نفس غرف العمليات السوداء، في إعداد مؤامرة «تسميم» جديدة في سورية، ليس ضدّ معارض سوري بل ضدّ الشعب السوري في محافظة إدلب بهدف اتهام الجيشين الروسي والسوري بتنفيذ الجريمة التي يخططون لها.

ثالثاً: الصين.

وفي إطار ما تقدّم، من معلومات، مقترنةً بقراءةٍ موضوعيةٍ لهذه المعلومات، لا بدّ لنا أن نؤكد على أنّ جزءاً أساسياً من الجهود التخريبية، التي يجري تنفيذها في جنوب القوقاز، عبر إشعال فتيل الحرب في منطقة كاراباخ، موجه ضدّ جمهورية الصين الشعبية بشكل مباشر أيضاً، وذلك للأسباب التالية:

1 ـ عجز الولايات المتحده ودول حلف شمال الأطلسي معاً، ليس فقط عن مواجهة الصين عسكرياً فحسب، وإنما عجز واشنطن وحلفائها في الاتحاد الأوروبي حتى عن منافسة الصين اقتصادياً، الأمر الذي سيؤدي بالضرورة وبصورة مجردة تماماً الى تربّع الصين على عرش العالم خلال سنوات قليلة. وهو ما يعني إنهاء الهيمنة الاستعمارية الأميركية الأوروبية في العالم أجمع والى غير رجعة.

وبالنظر الى انّ مشروع طريق الحرير الصيني هو أحد أهمّ ركائز سياسة الصين الدولية، على الصعيد الاقتصادي وبالتالي السياسي والعسكري مستقبلاً، وهي السياسة المبنية على المنافسة الاقتصادية الشريفة والابتعاد عن سياسات العدوان وإشعال الحروب، تلافياً لنشأة أوضاع غير مستقرّة لا تساعد على تنمية التعاون الاقتصادي بين الدول، فإنّ الولايات المتحدة قد لجأت الى إشعال فتيل الحروب المتدحرجة في منطقة القوقاز، التي شكلت عقدة أساسية واستراتيجية هامة على الصعيد التجاري والسياسي والعسكري وحتى الديني، في حقبة طريق الحرير الصينية القديمة، التي كانت قائمة منذ سنة ١١٥ قبل الميلاد وحتى بداية القرن الثالث عشر الميلادي، والتي كانت تتمّ عبرها التبادلات التجارية بين الصين وجنوب أوروبا على وجه الخصوص، مارةً بمنطقة القوقاز الشمالي والجنوبي. وهي المناطق التي تحاول واشنطن وأدواتها السيطرة عليها حالياً لعرقلة تنفيذ مشاريع البنى التحتية الضرورية للحركة التجارية، التي هي قيد التبلور على قاعدة مشروع طريق واحد وحزام واحد الصيني العملاق.

وهذا يعني ان الولايات المتحدة، ومن خلال أدواتها الاقليمية، الصهيونية والعثمانية والرجعية العربية تسعى الى السيطرة على كامل منطقة القوقاز الاستراتيجية، وليس فقط إلحاق إقليم ناغورنو كاراباخ بأذربيجان كما يدّعي أردوغان.

من هنا فإنّ من الضروري فهم طبيعة هذا المخطط العدواني على حقيقته، ايّ على انه حلقة مكملة لتطويق الصين الشعبية استراتيجياً. فبالاضافة الى التحرشات والاستفزازات المتواصلة، التي تقوم بها الأساطيل البحرية الأميركية والأوروبية، كالقوة المسماة «قوة حماية التجارة الدولية» وغيرها، في بحر الصين الجنوبي، وبحار الصين الأخرى، وشرق المحيط الهندي وغرب المحيط الهادئ (الممتدة من جزيرة غوام حتى بحر الفلبين وجزيرة تايوان الصينية المنشقة)، بالاضافة الى هذه التحرشات ومثيلاتها الجوية، المنطلقة من القواعد الأميركية في اليابان وكوريا الجنوبية وقواعد المحيط الهندي، نجد ان الخبراء الاستراتيجيين الأميركيين، وفي ظل عجزهم عن المواجهة العسكرية المباشرة، في جنوب شرق آسيا، يلجأون الى خلق المصاعب الاستراتيجية للصين، على صعيد التجارة الاستراتيجية، أملاً منهم في إضعافها اقتصادياً، وبالتالي عسكرياً، كي يتمكنوا من تحقيق أهدافهم، في تكريس الهيمنة الأميركية على العالم من جديد.

لكن ما يغيب عن بال هؤلاء المخططين هو حقيقة انّ المصالح المشتركة، بين الصين الشعبية وروسيا وإيران، وعلاقات التنسيق الوثيق، التي تربط الدول الثلاث، على مختلف الأصعدة، كفيلة بإفشال كلّ هذه الأوهام، وانّ أتباع واشنطن في أنقره وتل أبيب وأعراب النفط لن يكونوا قادرين على تغيير موازين القوى الاستراتيجية، لا على صعيد منطقة القوقاز وآسيا الوسطى، ولا على صعيد موازين القوى في جنوب شرق آسيا وغرب المحيط الهادئ. وهي بالتالي مشاريع محكومة بالفشل، كسابقاتها من المشاريع الاميركية، التي انطلقت من احتلال أفغانستان، ثم العراق ومن بعدها محاولة ضرب حزب الله في لبنان سنة ٢٠٠٦، تعزيزاً لاحتلال العراق وتمهيداً للسيطرة على «الشرق الأوسط» بأكمله، وصولاً الى الفتن والحروب التي أشعلتها الولايات المتحدة في الدول العربية، تحت مسمّى الربيع العربي، منذ عام ٢٠١١، وانتهاءً بالعدوان الأميركي «الإسرائيلي» السعودي على اليمن، الذي فشل تماماً في تحقيق أيّ من أهدافه.

2 ـ التمهيد لتوسيع دائرة الحروب والفتن الطائفية والعرقية، في عموم منطقة آسيا الوسطى، وليس فقط في منطقة شمال وجنوب القوقاز، وذلك عبر تكليف مخلب الناتو، تركيا أردوغان، وتحت إشراف غرفة العمليات الأميركية التركية الإسرائيلية المشتركة، وبتمويل سعودي، بنقل الآلاف من مسلحي داعش، الموجودين في سورية حالياً، والذين تمّ نشرهم على محاور: فضولي وجبرائيل، جنوب منطقة ناغورنو كاراباخ، على الحدود الإيرانيه الاذرية، لاستخدامهم ضمن الأهداف المذكورة أعلاه، إلى جانب إنشاء معسكرات تدريب مخصصة لإعادة تدريب هذه العناصر، وتسريبها الى دول وسط آسيا السوفياتية السابقة، وصولاً الى الصين، ظناً منهم انّ بمقدورهم تغيير موازين القوى الاستراتيجية، أو خلق مناطق عدم استقرار دائمة، على حدود الصين الغربية وحدود روسيا الجنوبية والجنوبية الغربية وحدود إيران الشمالية الغربية.

بائسون هؤلاء الاطلسيون من واشنطن حتى أنقرة…

لم يقرأوا التاريخ جيداً ولا استوعبوا بعد السنن الكونية الحاكمة في كلّ تحوّلات الدنيا…

وما يمكرون إلا بأنفسهم ولا يشعرون

سأريكم آياتي فلا تستعجلون

بعدنا طيبين قولوا الله…

Trump’s Surprising Alaska-Canada Rail Announcement: Might America Join the Polar Silk Road?

By Matthew Ehret for the Saker Blog

Trump’s Surprising Alaska-Canada Rail Announcement: Might America Join the Polar Silk Road?

On September 26, President Trump announced that a long-overdue project would receive Federal support which involves connecting Alaska for the first time with Canada and the lower 48 states via a 2570 km railway.

In his Tweet announcing the project, Trump said:

Ever since the days of the sale of Alaska from Russia to the USA in 1867, it was understood by leading statesmen of both nations that an inevitable next phase in human society’s evolution would involve extending the U.S. Trans Continental Railway through Canada, into Alaska and thence into Russia and Asia via the Bering Strait rail tunnel. This project had received fervent support from such figures as Russian Prime Minister Sergei Witte, Colorado’s Governor William Gilpin and even Czar Nicholas II who commissioned American engineers to conduct a feasibility study in 1906. These stories were told in full in my recent reports The Missed Chance of 1867, and The Real Story Behind the Alaska Purchase.

By the mid 20th century, the project to connect Alaska with Canada and the rest of the continent while opening the Arctic for development found its champions in the forms of Vice President Henry Wallace (1941-1945), President John F Kennedy (1961-63) and in Canada B.C. Premier W.A.C. Bennett (1952-72) and Prime Minister John Diefenbaker (1957-1963).

During Bennett’s 20 year role as Premier (from 1952-1972), the Province was pulled quickly into the 20th century becoming an international hub of hydroelectric power, industrial growth and water management. As the story was told in Forgotten Battles Against the Deep State: W.A.C. Bennett vs the Malthusians, Bennett’s growth program never occurred without vicious battles pitting high level anti-development Rhodes Scholars operating within both Ottawa and his own Provincial administration against him and his small team of nation builders. Unfortunately for Bennett who always intended his northern rail programs to connect with Alaska, his key ally in Ottawa was taken out of power during a Rhodes Scholar-driven coup in 1963 and John F Kennedy, who met Bennett and supported many of infrastructure initiatives fell earlier that same year.

With the fall of these statesmen, a new paradigm took hold of western society premised on living in the moment, rejecting ideas like “the nuclear family”, belief in scientific and technological progress”, or the study of “dead white European males” in universities.

The era of building things was choked off and an era of monetary growth was unleashed like a cancerous tumor under globalization.

Today, with the immanent breakdown of the post-1971 de-regulated order, a new order is emerging and it remains to be seen who will benefit.

For all of his limitations, President Trump has displayed a rare and invaluable quality unseen in an American president for decades: Humanity and genuine patriotism. While neocons and technocrats attempt to gain the upper hand amidst the impending blowout of the $1.5 quadrillion derivatives bubble called the western economy, a new epoch of serious nation building has emerged with the Russia-China alliance and Belt and Road Initiative, which has extended development corridors, industrial zones and mass infrastructure led by rail throughout Asia, Africa and increasingly into the Russian Arctic under the Polar Silk Road.

In its essential character, this Multipolar alliance represents a form of thinking and action which are much more in alignment with discoverable principles of natural law (premised not on “Might Makes Right but rather “Right makes Might” as enunciated famously by the great Chinese President and revolutionary in his Three Principles of the People (modelled on his studies of Lincoln’s principles of government) where he said: “The rule of Right respects benevolence and virtue, while the rule of Might only respects force and utilitarianism. The rule of Right always influences people with justice and reason, while the rule of Might always oppresses people with brute force and military measures.”

Todays potential re-emergence of the Alaska-Canada Railway which would be driven under a pro-Pacific and pro-Arctic development model represents the first genuine display of this paradigm in North America in decades.

If it survives the oncoming Environmental Impact Assessments and Federal Government of Canada (which is currently run by anti-development Rhodes Scholars and technocrats committed to depopulation and world government), then it will not only upon up bountiful resources locked up in the inaccessible Arctic, create tens of thousands of much needed jobs directly and millions of jobs indirectly and vector North America’s economic destiny with the ever-growing Asian markets led by China. Most importantly, it will do much to break the west free of the two-fold trap of anti-development versions of environmentalism on the one side and pro-militarization right wing views on the other side- bringing us into a policy of win-win cooperation with our Eurasian partners.

The Alaska-Alberta Railway Development Corporation (tasked by Trump with the job of building and managing this $17 billion project), features on its website programs to tie North America into the Asian market as well as help integrate a North American transport system whose once proud rail system have fallen derelict since WWII and the age of “highways and cars” took over.

A2A CEO Sean McCoshen stated as much this year when he said: “This is a world-class infrastructure project that will generate more than 18,000 jobs for Canadian workers at a time when they are most needed, provide a new, more efficient route for trans-Pacific shipping and thereby link Alberta to world markets.”

Whether or not such programs which may now occur since Globalizated monsters like NAFTA and the TPP have been jettisoned giving nation states the authority to exercise a dirigistic role in long term economic planning remains to be seen.

Matthew Ehret is the Editor-in-Chief of the Canadian Patriot Review , a BRI Expert on Tactical talk, and has authored 3 volumes of ‘Untold History of Canada’ book series. In 2019 he co-founded the Montreal-based Rising Tide Foundation 

Sinophobia, Lies and Hybrid War

Sinophobia, Lies and Hybrid War

September 23, 2020

by Pepe Escobar and with permission cross-posted with Asia Times

It took one minute for President Trump to introduce a virus at the virtual 75th UN General Assembly, blasting “the nation which unleashed this plague onto the world”.

And then it all went downhill.

Even as Trump was essentially delivering a campaign speech and could not care less about the multilateral UN, at least the picture was clear enough for all the socially distant “international community” to see.

Here is President Xi’s full statement. And here is President Putin’s full statement. And here’s the geopolitical chessboard, once again; it’s the “indispensable nation” versus the Russia-China strategic partnership.

As he stressed the importance of the UN, Xi could not be more explicit that no nation has the right to control the destiny of others: “Even less should one be allowed to do whatever it likes and be the hegemon, bully, or boss of the world .”

The US ruling class obviously won’t take this act of defiance lying down. The full spectrum of Hybrid War techniques will continue to be relentlessly turbo-charged against China, coupled with rampant Sinophobia, even as it dawns on many Dr. Strangelove quarters that the only way to really “deter” China would be Hot War.

Alas, the Pentagon is overstretched – Syria, Iran, Venezuela, South China Sea. And every analyst knows about China’s cyber warfare capabilities, integrated aerial defense systems, and carrier-killer Dongfeng missiles.

For perspective, it’s always very instructive to compare military expenditure. Last year, China spent $261 billion while the US spent $732 billion (38% of the global total).

Rhetoric, at least for the moment, prevails. The key talking point, incessantly hammered, is always about China as an existential threat to the “free world”, even as the myriad declinations of what was once Obama’s “pivot to Asia” not so subtly accrue the manufacture of consent for a future war.

This report by the Qiao Collective neatly identifies the process: “We call it Sinophobia, Inc. – an information industrial complex where Western state funding, billion dollar weapons manufacturers, and right-wing think tanks coalesce and operate in sync to flood the media with messages that China is public enemy number one. Armed with state funding and weapons industry sponsors, this handful of influential think tanks are setting the terms of the New Cold War on China. The same media ecosystem that greased the wheels of perpetual war towards disastrous intervention in the Middle East is now busy manufacturing consent for conflict with China.”

That “US military edge”

The demonization of China, infused with blatant racism and rabid anti-communism, is displayed across a full, multicolored palette: Hong Kong, Xinjiang (“concentration camps), Tibet (“forced labor”), Taiwan, “China virus”; the Belt and Road’s “debt trap”.

The trade war runs in parallel – glaring evidence of how “socialism with Chinese characteristics” is beating Western capitalism at its own high-tech game. Thus the sanctioning of over 150 companies that manufacture chips for Huawei and ZTE, or the attempt to ruin TikTok’s business in the US (“But you can’t rob it and turn it into a US baby”, as Global Times editor-in-chief Hu Xijin tweeted).

Still, SMIC (Semiconductor Manufacturing International Corporation), China’s top chip company, which recently profited from a $7.5 billion IPO in Shanghai, sooner or later may jump ahead of US chip manufacturers.

On the military front, “maximum pressure” on China’s eastern rim proceeds unabated – from the revival of the Quad to a scramble to boost the Indo-Pacific strategy.

Think Tankland is essential in coordinating the whole process, via for instance the Center for Strategic & International Studies, with “corporation and trade association donors” featuring usual suspects such as Raytheon, Lockheed Martin, Boeing, General Dynamics and Northrop Grumman.

So here we have what Ray McGovern brilliantly describes as MICIMATT – the Military-Industrial-Congressional-Intelligence-Media-Academia-Think-Tank complex – as the comptrollers of Sinophobia Inc.

Assuming there would be a Dem victory in November, nothing will change. The next Pentagon head will probably be Michele Flournoy, former Undersecretary of Defense for Policy (2009-2012) and co-founder of the Center for a New American Security, which is big on both the “China challenge” and the “North Korean threat”. Flournoy is all about boosting the “U.S. military’s edge” in Asia.

So what is China doing?

China’s top foreign policy principle is to advance a “community of shared future for mankind”. That is written in the constitution, and implies that Cold War 2.0 is an imposition from foreign actors.

China’s top three priorities post-Covid-19 are to finally eradicate poverty; solidify the vast domestic market; and be back in full force to trade/investment across the Global South.

China’s “existential threat” is also symbolized by the drive to implement a non-Western trade and investment system, including everything from the Asian Infrastructure Investment Bank (AIIB) and the Silk Road Fund to trade bypassing the US dollar.

Harvard Kennedy School report at least tried to understand how Chinese “authoritarian resilience” appeals domestically. The report found out that the CCP actually benefitted from increased popular support from 2003 to 2016, reaching an astonishing 93%, essentially due to social welfare programs and the battle against corruption.

By contrast, when we have a MICCIMAT investing in Perpetual War – or “Long War” (Pentagon terminology since 2001) – instead of health, education and infrastructure upgrading, what’s left is a classic wag the dog. Sinophobia is perfect to blame the abysmal response to Covid-19, the extinction of small businesses and the looming New Great Depression on the Chinese “existential threat”.

The whole process has nothing to do with “moral defeat” and complaining that “we risk losing the competition and endangering the world”.

The world is not “endangered” because at least vast swathes of the Global South are fully aware that the much-ballyhooed “rules-based international order” is nothing but a quite appealing euphemism for Pax Americana – or Exceptionalism. What was designed by Washington for post-WWII, the Cold War and the “unilateral moment” does not apply anymore.

Bye, bye Mackinder

As President Putin has made it very clear over and over again, the US is no longer “agreement capable” . As for the “rules-based international order”, at best is a euphemism for privately controlled financial capitalism on a global scale.

The Russia-China strategic partnership has made it very clear, over and over again, that against NATO and Quad expansion their project hinges on Eurasia-wide trade, development and diplomatic integration.

Unlike the case from the 16th century to the last decades of the 20th century, now the initiative is not coming from the West, but from East Asia (that’s the beauty of “initiative” incorporated to the BRI acronym).

Enter continental corridors and axes of development traversing Southeast Asia, Central Asia, the Indian Ocean, Southwest Asia and Russia all the way to Europe, coupled with a Maritime Silk Road across the South Asian rimland.

For the very first time in its millenary history, China is able to match ultra-dynamic political and economic expansion both overland and across the seas. This reaches way beyond the short era of the Zheng He maritime expeditions during the Ming dynasty in the early 15th century.

No wonder the West, and especially the Hegemon, simply cannot comprehend the geopolitical enormity of it all. And that’s why we have so much Sinophobia, so many Hybrid War techniques deployed to snuff out the “threat”.

Eurasia, in the recent past, was either a Western colony, or a Soviet domain. Now, it stands on the verge of finally getting rid of Mackinder, Mahan and Spykman scenarios, as the heartland and the rimland progressively and inexorably integrate, on their own terms, all the way to the middle of the 21st century.

Weekly China Newsbrief and Sitrep

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Weekly China Newsbrief and Sitrep

By Godfree Roberts selected from his extensive weekly newsletter : Here Comes China

Editorial Comments

Now that the excitement of all the major Heads of Countries virtually speaking at the UNGA is over, we can come to initial conclusions.  The theme of this gathering was to investigate the UN itself, and to position it to be a better global gathering place where internal relations can be discussed, problems solved and the work of multi-polarity between nations can continue.  President Putin gave a serious statesman speech without any fireworks, stating why the UN is important and calmly outlining the conditions in our world today, which actions should take priority and what the Russian focus is in the medium and long terms.  His gift to the UN and staff is a free SputnikV Vaccine.  Chairman Xi did the same and also came bearing gifts, putting some money where their mouth’s are in essence.  Here is the transcript and this quote stands out:  (Note my bolded sentence).

“Since the start of this year, we, the 1.4 billion Chinese, undaunted by the strike of COVID-19, and with the government and the people united as one, have made all-out efforts to control the virus and speedily restore life and economy to normalcy. We have every confidence to achieve our goals within the set time frame, that is, to finish the building of a moderately prosperous society in all respects, lift out of poverty all rural residents living below the current poverty line, and meet ten years ahead of schedule the poverty eradication target set out in the 2030 Agenda for Sustainable Development.

China is the largest developing country in the world, a country that is committed to peaceful, open, cooperative and common development.  We will never seek hegemony, expansion, or sphere of influence. We have no intention to fight either a Cold War or a hot war with any country.  We will continue to narrow differences and resolve disputes with others through dialogue and negotiation. We do not seek to develop only ourselves or engage in a zero-sum game. We will not pursue development behind closed doors. Rather, we aim to foster, over time, a new development paradigm with domestic circulation as the mainstay and domestic and international circulations reinforcing each other. This will create more space for China’s economic development and add impetus to global economic recovery and growth.

China will continue to work as a builder of global peace, a contributor to global development and a defender of international order. To support the UN in playing its central role in international affairs, I hereby announce the following steps to be taken by China:

— China will provide another US$50 million to the UN COVID-19 Global Humanitarian Response Plan.

— China will provide US$50 million to the China-FAO South-South Cooperation Trust Fund (Phase III).

— China will extend the Peace and Development Trust Fund between the UN and China by five years after it expires in 2025.

— China will set up a UN Global Geospatial Knowledge and Innovation Center and an International Research Center of Big Data for Sustainable Development Goals to facilitate the implementation of the 2030 Agenda for Sustainable Development.”

So why is it that the Chinese government seemingly fails to convince the western public that China is not their enemy? Alternatively stated, why is it that the western countries are successful in portraying China as their enemy?  The answer is non-complicated at a first look.

At present, 90% of Americans learn about China through Western media, so it’s hard for the Chinese Government to convince Americans of anything.

American media are even more tightly controlled than Chinese media and far less trustworthy, says the American Press Institute, “Just six percent of Americans say they have a lot of confidence in the media, putting the news industry about equal to Congress and well below the public’s view of other institutions”.

Americans don’t trust what their media tell them, but they don’t have other sources of information, either.

Joey Yu says: (February 22) —”The average American also has never left the United States. Never seen another country unless it’s through the media, and what the media shows them is probably outdated.”  • And nearly all Western media has the constant anti-Chinese political refrain which has brainwashed many even highly educated American and British professionals. I have given up trying to correct such people because I would lose their friendship if I continue to do that. But that brainwashing rankles.

First we had President Trump’s speech at the UNGA, which can only be categorized as a blistering and outright attack on China, well outside of the theme set for this meeting, while pretending to be the ‘Peaceful Nation’.  The Chinese commentary was immediate and devastating. I pulled these few comments describing President Trump’s speech out of just one of the Chinese commentaries:

Discriminatory, did the US President come to the UN for a quarrel, vulgar, full of loopholes, fooling only the American public, undisguised attempt at a new cold war, a destroyer, a creator of tensions, a hysterical attack that violated the diplomatic etiquette a top leader is supposed to have, pays no heed to diplomacy, they believe power is everything, they want the agenda of the international community to serve US politics, and the UN General Assembly be turned into Trump’s presidential campaign, the US has performed so poorly in handling domestic affairs that reforms could barely be advanced, it has to pass the buck to digest the domestic anger.

And then finally:  “This is the sign of stagnation and the decline of a major power. It’s hoped the US government will not go further in this direction, which will only end up deceiving itself.”

With that as a backdrop, this selection from Godfree’s Here Comes China Newsletter focuses on

  • vaccines,
  • how the ‘scary social credit system’ actually works,
  • a purported whistle blower,
  • Pakistan and Belt and Road
  • Chinese foreign investment.

While in the western countries there is a concerted effort against vaccines, and a tremendous amount of backlash from citizens against vaccines for Covid-19 (and I don’t blame them at all given who is developing these for the western world), in China the situation is completely different:

China will not need a sweeping coronavirus vaccination programme because the pathogen is effectively under control in the country – at least for now. Gao Fu, director of the Chinese Centre for Disease Control and Prevention (CCDC), said that large-scale vaccination would only be needed if there was a major outbreak, like the one in Wuhan in February. “This is an issue of balancing risk and return”.[MORE]


We’ve seen endless propaganda with visions of brutal control of the citizens via the so-called Social Credit System in China.  Let’s take a look at how it really works.

The chairman of China’s embattled HNA Group Co. Ltd. was restricted from excessive spending on travel, golf and other activities by a court as debt woes continue rattling the once high-flying conglomerate. A district court in Xi’an, northwest China’s Shaanxi province, issued orders to limit spending by HNA and its 67-year-old co-founder and Chairman Chen Feng, a court document database showed Wednesday. As the legal representative of HNA, Chen will be restricted from taking flights, buying train tickets that are pricier than economy class, accommodations in luxury hotels, spending on entertainment such as golf and leisure trips, buying property and nonessential vehicles, and investing in high-yield wealth management products, according to the orders. The Xi’an court said it issued the orders in a debt dispute filed against HNA in August. [MORE]

It seems absolutely fine to me that if someone mismanaged his large business and lived a luxury life, that he should be brought back to a normal lifestyle while fixing his business.


We`ve all heard of the Chinese Virologist that is being trotted out on most western mainstream media, saying that China developed the Covid-19 virus in a lab and she was told to stay silent.   Yet, I bet very few have seen the Chinese commentary on this:

Chinese defector’s shocking virus claim: Dr Li, a formerly a specialist at Hong Kong’s School of Public Health, said her supervisor first asked her to investigate a new “SARS-like” virus in Wuhan – but that her efforts were later stifled. She said she reported back that cases appeared to be rising exponentially but was told to “keep silent and be careful”. “’We will get in trouble and we’ll be disappeared’,” her supervisor reportedly said.  Dr Li travelled to the US in late April before speaking out, saying she had to leave Hong Kong because she “knows how [China] treat whistleblowers”. [MORE]

A press release from the University of Hong Kong (HKU) denied her claim and stated that: “Dr Yan never conducted any research on human-to-human transmission of the novel coronavirus at HKU during December 2019 and January 2020. We further observe that what she might have emphasised in the reported interview has no scientific basis but resembles hearsay.” The director of HKU’s School of Public Health, Keiji Fukuda, said in an internal memo to staff that none of the researchers named by Yan were involved in any cover-up or “secret research”.[MORE]


Pakistan and China signed the Development Agreement for the first China Pakistan Economic Corridor’s (CPEC) Rashakai Special Economic Zone (SEZ) Monday. Chairman Atif R. Bokhari said sufficient headway has been made on this front and the zones are now gearing up for business. “Pakistan’s proximity with China will allow these SEZs to foster economic interdependence for mutual economic advantage,” he added. [MORE]

In Pakistan, the Belt and Road project is everywhere. A dinner at the Islamabad Club quickly turns into a reminiscence of different visits to China. After a lecture in Lahore, a group of young men from Baluchistan want to know if China’s monumental economic initiative will develop their region — or cause it to lose its identity. The acronym for the corridor linking China and Pakistan, CPEC, can be heard in hotel lobbies and restaurants; it stands out for those who cannot understand Urdu. There are young people who have come of age since the beginning of the initiative and for whom it constitutes the only possible horizon for professional advancement. Earlier this year, I spent three weeks traveling in Pakistan, the crown jewel of the Belt and Road project, the country where the initiative first took root and therefore the most plausible candidate for the place where its future can be surmised and understood.

So central is the Belt and Road to Pakistani politics that it should not be thought of as a specific enterprise. Rather, it provides the overarching framework for every economic policy and project. In short, the initiative is something that should feel very familiar to policymakers in Brussels and other European capitals.

In my discussions with economic authorities and think tanks, it quickly became obvious that the main debate in Pakistan today is about the best way to adapt policy decisions and reforms to the Belt and Road framework. The Belt and Road can thus be compared to the European Union and the role it played for countries in Central and Eastern Europe after the 2004 and 2007 enlargements. Which decisions should these countries make in order to better occupy their place within the given political and economic order?

That many in the West still think of the Belt and Road purely in terms of infrastructure is something I find deeply perplexing. In the project’s inaugural speech that Chinese President Xi Jinping delivered in Astana in 2013, infrastructure was no more than one of the five pillars of the Belt and Road — and very obviously not more than an ancillary one. The real action was clearly elsewhere.

At the time of Xi was giving his speech in Astana, it was common to hear from different officials and intellectuals in Beijing that the Belt and Road was meant to be completed in 2049, around the time of the first centennial of the new China. Last year, while living in Beijing, I started hearing that the temporal horizon was even longer. Many spoke openly of a 100-year project. This is not the time-scale of an infrastructure plan. The Marshall Plan was concluded in just a few years. Interestingly, in Pakistan this idea — that the Belt and Road is a project of economic and technological development, culminating in a new global political and economic order — is clearly understood.  By Bruno Maçães, a former Europe minister for Portugal, is a senior adviser at Flint Global in London and the author most recently of “History Has Begun: The Birth of a New America” (Hurst, 2020). The paperback edition of his “Belt and Road: a Chinese World Order” will be published this month.  [MORE]


Over 80% of the World’s Na­tions received Chi­nese For­eign In­vest­ment in 2019. Chi­na’s out­bound for­eign di­rect in­vest­ment to­talled USD$136.91 bil­lion, for a YoY de­cline of 4.3%. The in­vest­ment sum nonethe­less made China the world’s sec­ond biggest source of for­eign di­rect in­vest­ment af­ter Japan ($226.65 bil­lion). As of the end of 2019 Chi­na’s to­tal for­eign di­rect in­vest­ments were $2.2 tril­lion, third be­hind the United States ($7.7 tril­lion) and the Nether­lands ($2.6 tril­lion). Chi­na’s out­bound for­eign di­rect in­vest­ment com­prised 10.4% of the global to­tal in 2019 – the fourth con­sec­u­tive year that this fig­ure was above 10%. Chi­na’s to­tal for­eign di­rect in­vest­ments were 6.4% of the to­tal, on par with 2018. 80% of Chi­na’s for­eign di­rect in­vest­ments in 2019 were in the ser­vices sec­tor, with key ar­eas in­clud­ing leas­ing and com­mer­cial ser­vices, whole­sale and re­tail, fi­nance, in­for­ma­tion com­mu­ni­ca­tions/ soft­ware, real es­tate, and tran­sit/ ware­hous­ing. [MORE]


Selections and editorial comments by Amarynth.  (Go Get that newsletter – it is again packed with detail).

The censored reason why the US would torpedo the UN over Iran: Iranian strength

Tuesday, 22 September 2020 7:19 PM  [ Last Update: Tuesday, 22 September 2020 7:23 PM ]

US Rep. Ilhan Omar (D-MN) (L) talks with Speaker of the House Nancy Pelosi (D-CA) during a rally with fellow Democrats before voting on H.R. 1, or the People Act, on the East Steps of the US Capitol on March 08, 2019 in Washington, DC. (AFP photo)
US Secretary of State Mike Pompeo speaks during a news conference to announce the Trump administration’s restoration of sanctions on Iran, on September 21, 2020, at the US State Department in Washington, DC. (Photo by AFP)
Why would the US blow up the UN over little old Iran?

By Ramin Mazaheri and cross-posted with Press-TV

Washington has illegally snapped back illegal sanctions on Iran. No one in the world cares, but all this illegality has not gone unnoticed: The US is gutting both its international reputation and that of the United Nations all over Iran.

Risking the international order, which Washington partially controls, over China – Ok, they could be viewed as a serious enough threat by the realpolitik fanatics in the Pentagon. Over the former USSR? Ok, that unsubmissive bloc also threatened total US control.

But over Iran?

We must remind ourselves that the question seems strange only because in all the Western coverage of Iran-US relations what is never broached is the merest notion of Iranian strength.

But if Iran is so powerless then why is the US going to such unprecedented lengths? Why did the warmongering New York Times take a pause from their yellow journalism to concede that, yes, the absurd sanctions move means, “the United States has largely isolated itself from the world order”.

But they didn’t genuinely explain, much less even ask: “Why risk so much over Iran?”

Here is the never-stated reality: the US has made this desperate, sure-to-fail gambit because US policy has been defeated by superior Iranian strength.

This is not jingoistic propaganda on my part: The New York Times conceded that, “The act was born of frustration”. Iran is not some behemoth ready to steamroll the entire world, nor is it a media darling welcomed by foreign masses with strewn flowers – so how can it frustrate the superpower so very much, even as so many other countries fear to engage in the smallest acts of independence or defiance?

It can’t merely be the morally-bankrupt answer so popular in the US, “It’s the economy, stupid,” – i.e, that Iran has a lot of oil. 

No, Iranian strength rests upon the fundamental success of Iran’s unique combination of post-1917 socioeconomic political structures adapted under a genuine and modern interpretation of Islam.

This strength has even another strength on top of it – what a tremendous appeal this combination has for the huge portion of the globe known as the Muslim world.

Iran calls US attempt to ‘snapback’ sanctions ‘null and void’, urges UN to block it
Iran calls US attempt to ‘snapback’ sanctions ‘null and void’, urges UN to block it

Iran says the US’ claim about the return of the UN Security Council’s sanctions against Tehran as per the so-called “snapback” mechanism is “null and void”, calling on the UN and its Security Council to block any attempt to reinstate the bans.

The idea that the Iranian Islamic Revolution could be universally exported is an absurdity – forced conversion to Islam is proscribed in the Qur’an, for starters, and Islamic culture does not seem readily compatible with that of Amsterdam, Rio de Janeiro or Tokyo any more than the culture of Tokyo, Rio and Amsterdam are readily compatible with that of Iran’s. But the idea that a post-1917, Islamically-based government can not just exist but thrive – even in total and open opposition to Western imperialism – is most definitely exportable to the Muslim World.

But even allowing this option to be democratically presented within Muslim countries is something which imperialists – from any region or culture – cannot risk.

Iran’s frightening strength, and its massive threat, is thus this: it keeps democratically presenting this option. That is the true reason why the US is so very deranged over Iran that they would topple the world order just to keep Iran from succeeding.

In a sense they are right: Iran’s success really does challenge the world order, after all, given the modern importance of oil – a Muslim world not chained by arrogant imperialists would force the West to finally cooperate and not dominate, and also free up trillions of petrodollars for local use.

Washington demands that 80 million Iranians must be viciously sanctioned because they keep selecting this option; keep getting out to vote; keep democratically participating; and – in 2020 – keep on respecting the national democratic will no matter how many sanctions get levied in an effort to, as former US Secretary of State John Kerry once said by accident in Paris, “implode” Iran.

(In 2020 in the US, however, it seems like neither side will honor the national democratic will if their own candidate doesn’t win – more proof that the US is not a very democratic culture, perhaps.)

UN chief says will take no action on US 'snapback' push against Iran
UN chief says will take no action on US ‘snapback’ push against Iran

The UN chief says “uncertainty” prevents him from considering Washington

Savvy commentators know that Trump’s sanctions may have increased economic difficulties but they also know that they have only increased domestic patriotism: a country which fought for eight years to preserve 5 centimetres of Iranian land from Iraqi & Western aggressors cannot be easily cowed, nor have they come this far to stop now.

Increasing this sense of patriotism is the reality that Iranians truly feel that they deserve international respect precisely because the Iranian Islamic Revolution of 1979 has created a novel system so very strong and egalitarian that it can face endless sanctions and still win.

These post-1917 and Islamic-inspired creations, solutions and levers are what are so treasured domestically; are what explain the success for Iran’s resistance; cannot even be objectively described, much less openly admired, in the West, which is why the West doesn’t even want to inquire about possible Iranian strengths.

It also these systems – their very success, support and how they increase sovereign Iranian strength – which explain why it is China which courted Iran for the Belt and Road Initiative and not the other way around. For over five years Iran rather rejected Beijing’s overtures, in order to give the JCPOA a chance.

The most lenient analysis in 2020 would be that the JCPOA is at least a partial failure, and it seems very historically logical to predict that even a victory by Joe Biden would not lead to the US actually honoring the treaty.

But as the JCPOA’s promises continued to go unfulfilled Iranian diplomats were also laying the groundwork for the $400 billion, 25-year strategic partnership with China that now seems certain to be finalized.

None of it adds up over Iran, to the US elite:

Why would the US blow up the UN over little old Iran? Why is China making Iran (and not, say, Russia) their make-or-break node in their Belt and Road Initiative? Why is the world standing with Iran against almighty Washington?

But it’s not possible to intelligently answer such questions if the idea of Iranian strength cannot even be openly discussed.

Fortunately for the average Iranian: strength means having the ability to disregard the ignorance, collusion and duplicity of those weaker than yourself.

Ramin Mazaheri is currently covering the US elections. He is the chief correspondent in Paris for PressTV and has lived in France since 2009. He has been a daily newspaper reporter in the US, and has reported from Iran, Cuba, Egypt, Tunisia, South Korea and elsewhere. He is the author of ‘Socialism’s Ignored Success: Iranian Islamic Socialism’ as well as ‘I’ll Ruin Everything You Are: Ending Western Propaganda on Red China’, which is also available in simplified and traditional Chinese.

(The views expressed in this article do not necessarily reflect those of Press TV.)

Press TV’s website can also be accessed at the following alternate addresses:

www.presstv.ir

www.presstv.co.uk

www.presstv.tv

Hyperinflation, Fascism and War: How the New World Order May Be Defeated Once More

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Hyperinflation, Fascism and War: How the New World Order May Be Defeated Once More

September 19, 2020

By Matthew Ehret for the Saker Blog

While the world’s attention is absorbed by tectonic shifts unfolding across America as “a perfect storm of civil war, and military coup threatens to undo both the elections and the very foundations of the republic itself, something very ominous has appeared “off of the radar” of most onlookers. This something is a financial collapse of the trans-Atlantic banks that threatens to unleash chaos upon the world. It is this collapse that underlies the desperate efforts being made by the neo-con drive for total war with Russia, China and other members of the growing Mutlipolar Alliance today.

In recent articles, I have mentioned that the Bank of England-led “solution” to this oncoming financial blowout of the $1.5 quadrillion derivatives bubble is being pushed under the cover of a “Great Global Reset” which is an ugly and desperate effort to use COVID-19 as a cover for the imposition of a new post-covid world order operating system. Since the new “rules” of this new system are very similar to the 1923 Bank of England “solution” to Germany’s economic chaos which eventually required a fascist governance mechanism to impose it onto the masses, I wish to take a deeper look at the causes and effects of Weimar Germany’s completely un-necessary collapse into hyperinflation and chaos during the period of 1919-1923.

In this essay, I will go further to examine how those same architects of hyperfinflation came close to establishing a global bankers’ dictatorship in 1933 and how that early attempt at a New World Order was fortunately derailed through a bold fight which has been written out of popular history books.

We will investigate in depth how a major war broke out within America led by anti-imperial patriots in opposition to the forces of Wall Street and London’s Deep State and we will examine how this clash of paradigms came to a head in 1943-1945.

This historical study is not being conducted for entertainment, nor should this be seen as a purely academic exercise, but is being created for the simple fact that the world is coming to a total systemic meltdown and unless certain suppressed facts of 20th century history are brought to light, then those forces who have destroyed our collective memory of what we once were will remain in the drivers seat as society is carried into a new age of fascism and world war.

Versailles and the Destruction of Germany

Britain had been the leading hand behind the orchestration of WWI and the destruction of the potential German-Russian-American-Ottoman alliance that had begun to take form by the late 19th century as foolish Kaiser Wilhelm discovered (though sadly too late) when he said: “the world will be engulfed in the most terrible of wars, the ultimate aim of which is the ruin of Germany. England, France and Russia have conspired for our annihilation… that is the naked truth of the situation which was slowly but surely created by Edward VII”.

Just as the British oligarchy managed the war, so too did they organize the reparations conference in France which, among other things, imposed impossible debt repayments upon a defeated Germany and created the League of Nations which was meant to become the instrument for a “post-nation state world order”. Lloyd George led the British delegation alongside his assistant Philip Kerr (Lord Lothian), Leo Amery, Lord Robert Cecil and Lord John Maynard Keynes who have a long term agenda to bring about a global dictatorship. All of these figures were members of the newly emerging Round Table Movement, that had taken full control of Britain by ousting Asquith in 1916, and which is at the heart of today’s “deep state”.

After the 1918 Armistice dismantled Germany’s army and navy, the once powerful nation was now forced to pay the impossible sum of 132 billion gold marks to the victors and had to give up territories representing 10% of its population (Alsace-Loraine, Ruhr, and North Silesia) which made up 15% of its arable land, 12% of its livestock, 74% of its iron ore, 63% of its zinc production, and 26% of its coal. Germany also had to give up 8000 locomotives, 225 000 railcars and all of its colonies. It was a field day of modern pillage.

Germany was left with very few options. Taxes were increased and imports were cut entirely while exports were increased. This policy (reminiscent of the IMF austerity techniques in use today) failed entirely as both fell 60%. Germany gave up half of its gold supply and still barely a dent was made in the debt payments. By June 1920 the decision was made to begin a new strategy: increase the printing press. Rather than the “miracle cure” which desperate monetarists foolishly believed it would be, this solution resulted in an asymptotic devaluation of the currency into hyperinflation. From June 1920 to October 1923 the money supply in circulation skyrocketed from 68.1 gold marks to 496.6 quintillion gold marks. In June 1922, 300 marks exchanged $1 US and in November 1923, it took 42 trillion marks to get $1 US! Images are still available of Germans pushing wheelbarrows of cash down the street, just to buy a stick of butter and bread (1Kg of Bread sold for $428 billion marks in 1923).

With the currency’s loss of value, industrial output fell by 50%, unemployment rose to over 30% and food intake collapsed by over half of pre-war levels. German director Fritz Lang’s 1922 film Dr. Mabuse (The Gambler) exposed the insanity of German population’s collapse into speculative insanity as those who had the means began betting against the German mark in order to protect themselves thus only helping to collapse the mark from within. This is very reminiscent of those Americans today short selling the US dollar rather than fighting for a systemic solution.

There was resistance.

The dark effects of Versailles were not unknown and Germany’s Nazi-stained destiny was anything but pre-determined. It is a provable fact often left out of history books that patriotic forces from Russia, America and Germany attempted courageously to change the tragic trajectory of hyperinflation and fascism which WOULD HAVE prevented the rise of Hitler and WWII had their efforts not been sabotaged.

From America itself, a new Presidential team under the leadership of William Harding quickly reversed the pro-League of Nations agenda of the rabidly anglophile President Woodrow Wilson. A leading US industrialist named Washington Baker Vanderclip who had led in the world’s largest trade agreement in history with Russia to the tune of $3 billion in 1920 had called Wilson “an autocrat at the inspiration of the British government.” Unlike Wilson, President Harding both supported the US-Russia trade deal and undermined the League of Nations by re-enforcing America’s sovereignty, declaring bi-lateral treaties with Russia, Hungary and Austria outside of the league’s control in 1921. The newly-formed British Roundtable Movement in America (set up as the Council on Foreign Relations) were not pleased.

Just as Harding was maneuvering to recognize the Soviet Union and establish an entente with Lenin, the great president ate some “bad oysters” and died on August 2, 1923. While no autopsy was ever conducted, his death brought a decade of Anglophile Wall Street control into America and ended all opposition to World Government from the Presidency. This period resulted in the speculation-driven bubble of the roaring 20s whose crash on black Friday in 1929 nearly unleashed a fascist hell in America.

The Russia-Germany Rapallo Treaty is De-Railed

After months of organizing, leading representatives of Russia and Germany agreed to an alternative solution to the Versailles Treaty which would have given new life to Germany’s patriots and established a powerful Russia-German friendship in Europe that would have upset other nefarious agendas.

Under the leadership of German Industrialist and Foreign Minster Walter Rathenau, and his counterpart Russian Foreign Minister Georgi Chicherin, the treaty was signed in Rapallo, Italy on April 16, 1922 premised upon the forgiveness of all war debts and a renouncement of all territorial claims from either side. The treaty said Russia and Germany would “co-operate in a spirit of mutual goodwill in meeting the economic needs of both countries.”

When Rathenau was assassinated by a terrorist cell called the Organization Consul on June 24, 1922 the success of the Rapallo Treaty lost its steam and the nation fell into a deeper wave of chaos and money printing. The Organization Consul had taken the lead in the murder of over 354 German political figures between 1919-1923, and when they were banned in 1922, the group merely changed its name and morphed into other German paramilitary groups (such as the Freikorps) becoming the military arm of the new National Socialist Party.

1923: City of London’s Solution is imposed

When the hyperinflationary blowout of Germany resulted in total un-governability of the state, a solution took the form of the Wall Street authored “Dawes Plan” which necessitated the use of a London-trained golem by the name of Hjalmar Schacht. First introduced as Currency Commissioner in November 1923 and soon President of the Reichsbank, Schacht’s first act was to visit Bank of England’s governor Montagu Norman in London who provided Schacht a blueprint for proceeding with Germany’s restructuring. Schacht returned to “solve” the crisis with the very same poison that caused it.

First announcing a new currency called the “rentenmark” set on a fixed value exchanging 1 trillion reichsmarks for 1 new rentenmark, Germans were robbed yet again. This new currency would operate under “new rules” never before seen in Germany’s history: Mass privatizations resulted in Anglo-American conglomerates purchasing state enterprises. IG Farben, Thyssen, Union Banking, Brown Brothers Harriman, Standard Oil, JP Morgan and Union Banking took control Germany’s finances, mining and industrial interests under the supervision of John Foster Dulles, Montagu Norman, Averill Harriman and other deep state actors. This was famously exposed in the 1961 film Judgement at Nuremburg by Stanley Kramer.

Schacht next cut credit to industries, raised taxes and imposed mass austerity on “useless spending”. 390 000 civil servants were fired, unions and collective bargaining was destroyed and wages were slashed by 15%.

As one can imagine, this destruction of life after the hell of Versailles was intolerable and civil unrest began to boil over in ways that even the powerful London-Wall Street bankers (and their mercenaries) couldn’t control. An enforcer was needed unhindered by the republic’s democratic institutions to force Schacht’s economics onto the people. An up-and-coming rabble rousing failed painter who had made waves in a Beerhall Putsch on November 8, 1923 was perfect.

One Last Attempt to Save Germany

Though Hitler grew in power over the coming decade of Schachtian economics, one last republican effort was made to prevent Germany from plunging into a fascist hell in the form of the November 1932 election victory of General Kurt von Schleicher as Chancellor of Germany. Schleicher had been a co-architect of Rapallo alongside Rathenau a decade earlier and was a strong proponent of the Friedrich List Society’s program of public works and internal improvements promoted by industrialist Wilhelm Lautenbach. The Nazi party’s public support collapsed and it found itself bankrupt. Hitler had fallen into depression and was even contemplating suicide when “a legal coup” was unleashed by the Anglo-American elite resulting in Wall Street funds pouring into Nazi coffers.

By January 30, 1933 Hitler gained Chancellorship where he quickly took dictatorial powers under the “state of emergency” caused by the burning of the Reichstag in March 1933. By 1934 the Night of the Long Knives saw General Schleicher and hundreds of other German patriots assassinated and it was only a few years until the City of London-Wall Street Frankenstein monster stormed across the world.

How the 1929 Crash was Manufactured

While everyone knows that the 1929 market crash unleashed four years of hell in America which quickly spread across Europe under the great depression, not many people have realized that this was not inevitable, but rather a controlled blowout.

The bubbles of the 1920s were unleashed with the early death of President William Harding in 1923 and grew under the careful guidance of JP Morgan’s President Coolidge and financier Andrew Mellon (Treasury Secretary) who de-regulated the banks, imposed austerity onto the country, and cooked up a scheme for Broker loans allowing speculators to borrow 90% on their stock. Wall Street was deregulated, investments into the real economy were halted during the 1920s and insanity became the norm. In 1925 broker loans totalled $1.5 billion and grew to $2.6 billion in 1926 and hit $5.7 billion by the end of 1927. By 1928, the stock market was overvalued fourfold!

When the bubble was sufficiently inflated, a moment was decided upon to coordinate a mass “calling in” of the broker loans. Predictably, no one could pay them resulting in a collapse of the markets. Those “in the know” cleaned up with JP Morgan’s “preferred clients”, and other financial behemoths selling before the crash and then buying up the physical assets of America for pennies on the dollar. One notable person who made his fortune in this manner was Prescott Bush of Brown Brothers Harriman, who went onto bailout a bankrupt Nazi party in 1932. These financiers had a tight allegiance with the City of London and coordinated their operations through the private central banking system of America’s Federal Reserve and Bank of International Settlements.

The Living Hell that was the Great Depression

Throughout the Great depression, the population was pushed to its limits making America highly susceptible to fascism as unemployment skyrocketed to 25%, industrial capacity collapsed by 70%, and agricultural prices collapsed far below the cost of production accelerating foreclosures and suicide. Life savings were lost as 4000 banks failed.

This despair was replicated across Europe and Canada with eugenics-loving fascists gaining popularity across the board. England saw the rise of Sir Oswald Mosley’s British Union of Fascists in 1932, English Canada had its own fascist solution with the Rhodes Scholar “Fabian Society” League of Social Reconstruction (which later took over the Liberal Party) calling for the “scientific management of society”. Time magazine had featured Il Duce over 6 times by 1932 and people were being told by that corporate fascism was the economic solution to all of America’s economic woes.

In the midst of the crisis, the City of London removed itself from the gold standard in 1931 which was a crippling blow to the USA, as it resulted in a flight of gold from America causing a deeper contraction of the money supply and thus inability to respond to the depression. British goods simultaneously swamped the USA crushing what little production was left.

It was in this atmosphere that one of the least understood battles unfolded in 1933.

1932: A Bankers’ Dictatorship is Attempted

In Germany, a surprise victory of Gen. Kurt Schleicher caused the defeat of the London-directed Nazi party in December 1932 threatening to break Germany free of Central Bank tyranny. A few weeks before Schleicher’s victory, Franklin Roosevelt won the presidency in America threatening to regulate the private banks and assert national sovereignty over finance.

Seeing their plans for global fascism slipping away, the City of London announced that a new global system controlled by Central Banks had to be created post haste. Their objective was to use the economic crisis as an excuse to remove from nation states any power over monetary policy, while enhancing the power of Independent Central Banks as enforcers of “balanced global budgets”. elaborate

In December 1932, an economic conference “to stabilize the world economy” was organized by the League of Nations under the guidance of the Bank of International Settlements (BIS) and Bank of England. The BIS was set up as “the Central Bank of Central Banks” in 1930 in order to facilitate WWI debt repayments and was a vital instrument for funding Nazi Germany- long after WWII began. The London Economic Conference brought together 64 nations of the world under a controlled environment chaired by the British Prime Minister and opened by the King himself.

A resolution passed by the Conference’s Monetary Committee stated:

“The conference considers it to be essential, in order to provide an international gold standard with the necessary mechanism for satisfactory working, that independent Central Banks, with requisite powers and freedom to carry out an appropriate currency and credit policy, should be created in such developed countries as have not at present an adequate central banking institution” and that “the conference wish to reaffirm the great utility of close and continuous cooperation between Central Banks. The Bank of International Settlements should play an increasingly important part not only by improving contact, but also as an instrument for common action.”

Echoing the Bank of England’s modern fixation with “mathematical equilibrium”, the resolutions stated that the new global gold standard controlled by central banks was needed “to maintain a fundamental equilibrium in the balance of payments” of countries. The idea was to deprive nation states of their power to generate and direct credit for their own development.

FDR Torpedoes the London Conference

Chancellor Schleicher’s resistance to a bankers’ dictatorship was resolved by a “soft coup” ousting the patriotic leader in favor of Adolph Hitler (under the control of a Bank of England toy named Hjalmar Schacht) in January 1933 with Schleicher assassinated the following year. In America, an assassination attempt on Roosevelt was thwarted on February 15, 1933 when a woman knocked the gun out of the hand of an anarchist-freemason in Miami resulting in the death of Chicago’s Mayor Cermak.

Without FDR’s dead body, the London conference met an insurmountable barrier, as FDR refused to permit any American cooperation. Roosevelt recognized the necessity for a new international system, but he also knew that it had to be organized by sovereign nation states subservient to the general welfare of the people and not central banks dedicated to the welfare of the oligarchy. Before any international changes could occur, nation states castrated from the effects of the depression had to first recover economically in order to stay above the power of the financiers.

By May 1933, the London Conference crumbled when FDR complained that the conference’s inability to address the real issues of the crisis is “a catastrophe amounting to a world tragedy” and that fixation with short term stability were “old fetishes of so-called international bankers”. FDR continued “The United States seeks the kind of dollar which a generation hence will have the same purchasing and debt paying power as the dollar value we hope to attain in the near future. That objective means more to the good of other nations than a fixed ratio for a month or two. Exchange rate fixing is not the true answer.”

The British drafted an official statement saying “the American statement on stabilization rendered it entirely useless to continue the conference.”

FDR’s War on Wall Street

The new president laid down the gauntlet in his inaugural speech on March 4th saying: “The money-changers have fled from their high seats in the temple of our civilization. We may now restore that temple to the ancient truths. The measure of the restoration lies in the extent to which we apply social values more noble than mere monetary profit”.

FDR declared a war on Wall Street on several levels, beginning with his support of the Pecorra Commission which sent thousands of bankers to prison, and exposed the criminal activities of the top tier of Wall Street’s power structure who manipulated the depression, buying political offices and pushing fascism. Ferdinand Pecorra who ran the commission called out the deep state when he said “this small group of highly placed financiers, controlling the very springs of economic activity, holds more real power than any similar group in the United States.”

Pecorra’s highly publicized success empowered FDR to impose sweeping regulation in the form of 1) Glass-Steagall bank separation, 2) bankruptcy re-organization and 3) the creation of the Security Exchange Commission to oversee Wall Street. Most importantly, FDR disempowered the London-controlled Federal Reserve by installing his own man as Chair (Industrialist Mariner Eccles) who forced it to obey national commands for the first time since 1913, while creating an “alternative” lending mechanism outside of Fed control called the Reconstruction Finance Corporation (RFC) which became the number one lender to infrastructure in America throughout the 1930s.

One of the most controversial policies for which FDR is demonized today was his abolishment of the gold standard. The gold standard itself constricted the money supply to a strict exchange of gold per paper dollar, thus preventing the construction of internal improvements needed to revive industrial capacity and put the millions of unemployed back to work for which no financial resources existed. It’s manipulation by international financiers made it a weapon of destruction rather than creation at this time. Since commodity prices had fallen lower than the costs of production, it was vital to increase the price of goods under a form of “controlled inflation” so that factories and farms could become solvent and unfortunately the gold standard held that back. FDR imposed protective tariffs to favor agro-industrial recovery on all fronts ending years of rapacious free trade.

FDR stated his political-economic philosophy in 1934: “the old fallacious notion of the bankers on the one side and the government on the other side, as being more or less equal and independent units, has passed away. Government by the necessity of things must be the leader, must be the judge, of the conflicting interests of all groups in the community, including bankers.”

The Real New Deal

Once liberated from the shackles of the central banks, FDR and his allies were able to start a genuine recovery by restoring confidence in banking. Within 31 days of his bank holiday, 75% of banks were operational and the FDIC was created to insure deposits. Four million people were given immediate work, and hundreds of libraries, schools and hospitals were built and staffed- All funded through the RFC. FDR’s first fireside chat was vital in rebuilding confidence in the government and banks, serving even today as a strong lesson in banking which central bankers don’t want you to learn about.

From 1933-1939, 45 000 infrastructure projects were built. The many “local” projects were governed, like China’s Belt and Road Initiative today, under a “grand design” which FDR termed the “Four Quarters” featuring zones of megaprojects such as the Tennessee Valley Authority area in the south east, the Columbia River Treaty zone on the northwest, the St Laurence Seaway zone on the North east, and Hoover Dam/Colorado zone on the Southwest. These projects were transformative in ways money could never measure as the Tennessee area’s literacy rose from 20% in 1932 to 80% in 1950, and racist backwater holes of the south became the bedrock for America’s aerospace industry due to the abundant and cheap hydropower. As I had already reported on the Saker, FDR was not a Keynesian (although it cannot be argued that hives of Rhodes Scholars and Fabians penetrating his administration certainly were).

Wall Street Sabotages the New Deal

Those who criticize the New Deal today ignore the fact that its failures have more to do with Wall Street sabotage than anything intrinsic to the program. For example, JP Morgan tool Lewis Douglass (U.S. Budget Director) forced the closure of the Civil Works Administration in 1934 resulting in the firing of all 4 million workers.

Wall Street did everything it could to choke the economy at every turn. In 1931, NY banks loans to the real economy amounted to $38.1 billion which dropped to only $20.3 billion by 1935. Where NY banks had 29% of their funds in US bonds and securities in 1929, this had risen to 58% which cut off the government from being able to issue productive credit to the real economy.

When, in 1937, FDR’s Treasury Secretary persuaded him to cancel public works to see if the economy “could stand on its own two feet”, Wall Street pulled credit out of the economy collapsing the Industrial production index from 110 to 85 erasing seven years’ worth of gain, while steel fell from 80% capacity back to depression levels of 19%. Two million jobs were lost and the Dow Jones lost 39% of its value. This was no different from kicking the crutches out from a patient in rehabilitation and it was not lost on anyone that those doing the kicking were openly supporting Fascism in Europe. Bush patriarch Prescott Bush, then representing Brown Brothers Harriman was found guilty for trading with the enemy in 1942!

Coup Attempt in America Thwarted

The bankers didn’t limit themselves to financial sabotage during this time, but also attempted a fascist military coup which was exposed by Maj. Gen. Smedley Butler in his congressional testimony of November 20, 1934. Butler had testified that the plan was begun in the Summer of 1933 and organized by Wall Street financiers who tried to use him as a puppet dictator leading 500 000 American Legion members to storm the White House. As Butler spoke, those same financiers had just set up an anti-New Deal organization called the American Liberty League which fought to keep America out of the war in defense of an Anglo-Nazi fascist global government which they wished to partner with.

The American Liberty league only changed tune when it became evident that Hitler had become a disobedient Frankenstein monster who wasn’t content in a subservient position to Britain’s idea of a New World Order. In response to the Liberty League’s agenda, FDR said “some speak of a New World Order, but it is not new and it is not order”.

FDR’s Anti-Colonial Post-War Vision

One of the greatest living testimonies to FDR’s anti-colonial vision is contained in a little known 1946 book authored by his son Elliot Roosevelt who, as his father’s confidante and aide, was privy to some of the most sensitive meetings his father participated in throughout the war. Seeing the collapse of the post-war vision upon FDR’s April 12, 1945 death and the emergence of a pro-Churchill presidency under Harry Truman, who lost no time in dropping nuclear bombs on a defeated Japan, ushering in a Soviet witch hunt at home and launching a Cold War abroad, Elliot authored ‘As He Saw It’ (1946) in order to create a living testimony to the potential that was lost upon his father’s passing.

As Elliot said of his motive to write his book:

“The decision to write this book was taken more recently and impelled by urgent events. Winston Churchill’s speech at Fulton, Missouri, had a hand in this decision,… the growing stockpile of American atom bombs is a compelling factor; all the signs of growing disunity among the leading nations of the world, all the broken promises, all the renascent power politics of greedy and desperate imperialism were my spurs in this undertaking… And I have seen the promises violated, and the conditions summarily and cynically disregarded, and the structure of peace disavowed… I am writing this, then, to you who agree with me that… the path he charted has been most grievously—and deliberately—forsaken.”

The Four Freedoms

Even before America had entered the war, the principles of international harmony which FDR enunciated in his January 6, 1941 Four Freedoms speech to the U.S. Congress served as the guiding light through every battle for the next 4.5 years. In this speech FDR said:

“In future days, which we seek to secure, we look forward to a world founded upon four essential human freedoms.

“The first is the freedom of speech and expression–everywhere in the world.

“The second is the freedom of every person to worship God in his own way–everywhere in the world.

“The third is the freedom from want–which, translated into world terms, means economic understandings which will secure to every nation a healthy peacetime life for its inhabitants–everywhere in the world.

“The fourth is freedom from fear–which, translated into world terms, means a worldwide reduction of armaments to such a point and in such a thorough fashion that no nation will be in a position to commit an act of physical aggression against any neighbor–anywhere in the world.

“That is no vision of a distant millennium. It is a definite basis for a kind of world attainable in our time and generation. That kind of world is the very antithesis of the so-called new order of tyranny which dictators seek to create with the crash of a bomb.

“To that new order, we oppose the greater conception–the moral order. A good society is able to face schemes of world domination and foreign revolutions alike without fear.

“Since the beginning of American history, we have been engaged in change–in a perpetual peaceful revolution–a revolution which goes on steadily, quietly, adjusting itself to changing conditions–without the concentration camp or the quicklime in the ditch. The world order which we seek is the cooperation of free countries, working together in a friendly, civilized society.

“This nation has placed its destiny in the hands and heads and hearts of millions of free men and women; and its faith in freedom under the guidance of God. Freedom means the supremacy of human rights everywhere. Our support goes to those who struggle to gain those rights or to keep them. Our strength is our unity of purpose.”

Upon hearing these Freedoms outlined, American painter Norman Rockwell was inspired to paint four masterpieces that were displayed across America and conveyed the beauty of FDR’s spirit to all citizens.

FDR’s patriotic Vice President (and the man who SHOULD have been president in 1948) Henry Wallace outlined FDR’s vision in a passionate video address to the people in 1942 which should also be watched by all world citizens today:

Churchill vs FDR: The Clash of Two Paradigms

Elliot’s account of the 1941-1945 clash of paradigms between his father and Churchill are invaluable both for their ability to shed light into the true noble constitutional character of America personified in the person of Roosevelt but also in demonstrating the beautiful potential of a world that SHOULD HAVE BEEN had certain unnatural events not intervened to derail the evolution of our species into an age of win-win cooperation, creative reason and harmony.

In As He Saw It, Elliot documents a conversation he had with his father at the beginning of America’s entry into WWII, who made his anti-colonial intentions clear as day saying:

“I’m talking about another war, Elliott. I’m talking about what will happen to our world, if after this war we allow millions of people to slide back into the same semi-slavery!

“Don’t think for a moment, Elliott, that Americans would be dying in the Pacific tonight, if it hadn’t been for the shortsighted greed of the French and the British and the Dutch. Shall we allow them to do it all, all over again? Your son will be about the right age, fifteen or twenty years from now.

“One sentence, Elliott. Then I’m going to kick you out of here. I’m tired. This is the sentence: When we’ve won the war, I will work with all my might and main to see to it that the United States is not wheedled into the position of accepting any plan that will further France’s imperialistic ambitions, or that will aid or abet the British Empire in its imperial ambitions.”

This clash came to a head during a major confrontation between FDR and Churchill during the January 24, 1943 Casablanca Conference in Morocco. At this event, Elliot documents how his father first confronted Churchill’s belief in the maintenance of the British Empire’s preferential trade agreements upon which it’s looting system was founded:

“Of course,” he [FDR] remarked, with a sly sort of assurance, “of course, after the war, one of the preconditions of any lasting peace will have to be the greatest possible freedom of trade.”

He paused. The P.M.’s head was lowered; he was watching Father steadily, from under one eyebrow.

“No artificial barriers,” Father pursued. “As few favored economic agreements as possible. Opportunities for expansion. Markets open for healthy competition.” His eye wandered innocently around the room.

Churchill shifted in his armchair. “The British Empire trade agreements” he began heavily, “are—”

Father broke in. “Yes. Those Empire trade agreements are a case in point. It’s because of them that the people of India and Africa, of all the colonial Near East and Far East, are still as backward as they are.”

Churchill’s neck reddened and he crouched forward. “Mr. President, England does not propose for a moment to lose its favored position among the British Dominions. The trade that has made England great shall continue, and under conditions prescribed by England’s ministers.”

“You see,” said Father slowly, “it is along in here somewhere that there is likely to be some disagreement between you, Winston, and me.

“I am firmly of the belief that if we are to arrive at a stable peace it must involve the development of backward countries. Backward peoples. How can this be done? It can’t be done, obviously, by eighteenth-century methods. Now—”

“Who’s talking eighteenth-century methods?”

“Whichever of your ministers recommends a policy which takes wealth in raw materials out of a colonial country, but which returns nothing to the people of that country in consideration. Twentieth-century methods involve bringing industry to these colonies. Twentieth-century methods include increasing the wealth of a people by increasing their standard of living, by educating them, by bringing them sanitation—by making sure that they get a return for the raw wealth of their community.”

Around the room, all of us were leaning forward attentively. Hopkins was grinning. Commander Thompson, Churchill’s aide, was looking glum and alarmed. The P.M. himself was beginning to look apoplectic.

“You mentioned India,” he growled.

“Yes. I can’t believe that we can fight a war against fascist slavery, and at the same time not work to free people all over the world from a backward colonial policy.”

“What about the Philippines?”

“I’m glad you mentioned them. They get their independence, you know, in 1946. And they’ve gotten modern sanitation, modern education; their rate of illiteracy has gone steadily down…”

“There can be no tampering with the Empire’s economic agreements.”

“They’re artificial…”

“They’re the foundation of our greatness.”

“The peace,” said Father firmly, “cannot include any continued despotism. The structure of the peace demands and will get equality of peoples. Equality of peoples involves the utmost freedom of competitive trade. Will anyone suggest that Germany’s attempt to dominate trade in central Europe was not a major contributing factor to war?”

A vintage photo of a group of people sitting posing for the camera Description automatically generated

It was an argument that could have no resolution between these two men…

The following day, Elliot describes how the conversation continued between the two men with Churchill stating:

“Mr. President,” he cried, “I believe you are trying to do away with the British Empire. Every idea you entertain about the structure of the postwar world demonstrates it. But in spite of that”—and his forefinger waved—”in spite of that, we know that you constitute our only hope. And”—his voice sank dramatically—”you know that we know it. You know that we know that without America, the Empire won’t stand.”

Churchill admitted, in that moment, that he knew the peace could only be won according to precepts which the United States of America would lay down. And in saying what he did, he was acknowledging that British colonial policy would be a dead duck, and British attempts to dominate world trade would be a dead duck, and British ambitions to play off the U.S.S.R. against the U.S.A. would be a dead duck. Or would have been, if Father had lived.”

This story was delivered in full during an August 15 lecture by the author:

FDR’s Post-War Vision Destroyed

While FDR’s struggle did change the course of history, his early death during the first months of his fourth term resulted in a fascist perversion of his post-war vision.

Rather than see the IMF, World Bank or UN used as instruments for the internationalization of the New Deal principles to promote long term, low interest loans for the industrial development of former colonies, FDR’s allies were ousted from power over his dead body, and they were recaptured by the same forces who attempted to steer the world towards a Central Banking Dictatorship in 1933.

The American Liberty League spawned into various “patriotic” anti-communist organizations which took power with the FBI and McCarthyism under the fog of the Cold War. This is the structure that Eisenhower warned about when he called out “the Military Industrial Complex” in 1960 and which John Kennedy did battle with during his 900 days as president.

This is the structure which is out to destroy President Donald Trump and undo the November elections under a military coup and Civil War out of fear that a new FDR impulse is beginning to be revived in America which may align with the 21st Century international New Deal emerging from China’s Belt and Road Initiative and Eurasian alliance. French Finance Minister Bruno LeMaire and Marc Carney have stated their fear that if the Green New Deal isn’t imposed by the west, then the New Silk Road and yuan will become the basis for the new world system.

The Bank of England-authored Green New Deal being pushed under the fog of COVID-19’s Great Green Global Reset which promise to impose draconian constraints on humanity’s carrying capacity in defense of saving nature from humanity have nothing to do with Franklin Roosevelt’s New Deal and they have less to do with the Bretton Woods conference of 1944. These are merely central bankers’ wet dreams for depopulation and fascism “with a democratic face” which their 1923 and 1933 efforts failed to achieve and can only be imposed if people remain blind to their own recent history.


Matthew Ehret is the Editor-in-Chief of the Canadian Patriot Review , a BRI Expert on Tactical talk, and has authored 3 volumes of ‘Untold History of Canada’ book series. In 2019 he co-founded the Montreal-based Rising Tide Foundation

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