Russia Thwarted A Large-Scale Ukrainian Military Operation Against Lugansk And Donetsk

thesaker  |  During special military operation, classified documents (https://function.mil.ru/files/morf/dokumentynua.pdf)of the command of the National Guard of Ukraine ended up in the hands of the Russian servicemen. These documents confirm the covert preparation by the Kiev regime of an offensive operation in the Donbass in March 2022.

The Russian Ministry of Defence publishes the original secret order of the commander of the National Guard of Ukraine, Colonel-General Nikolai Balan, dated January 22, 2022.

Order “On organizing the training of a battalion tactical group of the 4th operational brigade to perform combat (special) tasks in the joint forces operation as part of a brigade of the armed forces of Ukraine.”

The document is addressed to the heads of the northern Kiev, southern Odessa and western territorial departments of the National Guard of Ukraine.

The order, brought to the command of the National Guard of Ukraine, explains the plan for preparing one of the shock groups for offensive operations in the so-called “Joint Forces Operation” zone in Donbass.
The document approves the organizational structure of the battalion-tactical group of the 4th operational brigade of the National Guard, the organization of its comprehensive support and reassignment to the 80th separate air assault brigade of Ukraine.

I would like to emphasize that since 2016, this formation of the air assault troops of Ukraine has been trained by American and British instructors under the “NATO standard” training programs in Lvov.

In accordance with the order, the Deputy Commander of the National Guard was tasked with organizing joint combat training of the battalion-tactical group of the National Guard as part of the 80th separate air assault brigade of the armed forces of Ukraine from February 7 to February 28, 2022.

I draw your attention that as many as five paragraphs of 4th paragraph are devoted to the issues of careful selection of personnel, psychologists examination and ensuring their high motivation.

For this reason, the National Guard servicemen are provided with “visual agitation, information and propaganda materials, flags, and printing products.”

The deputy commander of the National Guard for Staffing (personnel) was ordered to organize “an effective system of moral and psychological support for the battalion tactical group of the 4th operational brigade, internal communications of commanders with subordinates, informing.”

At the same time, it is important to provide “an explanation to the personnel of command decisions and the importance of upcoming tasks.”

I draw special attention to the fact that the 12th paragraph of the order prohibits sending National Guard servicemen who showed “unsatisfactory” results of psychological testing according to the criterion of “risk appetite” to the area of joint command training and to the place of “combat special tasks”.

All events of joint combat training of the nationalists are ordered to be completed by February 28 in order to further ensure the fulfillment of combat missions as part of the Ukrainian “Joint Forces Operation” in Donbass.

The document contains the original signatures of the officials of the command of the National Guard of Ukraine responsible for the tasks.

We remember the statements by the leadership of the Kiev regime replicated by the Western media in February, that there were no plans for an armed seizure of Lugansk and Donetsk people’s republics. About their desire to resolve all issues in “political and diplomatic way.”

However, the originals of the secret military documents of the National Guard of Ukraine clearly prove the falsity of these statements.

A special military operation of the Russian Armed Forces, conducted since February 24, thwarted a large-scale offensive operation of Ukrainian troops on the Lugansk and Donetsk people’s republics in March of this year.

Thus, only one question remains unclear so far: how deeply the US leadership and its NATO allies were involved in the planning and preparation of the operation to storm the Donbass by the Ukrainian joint force grouping in early March. All those who care so much about peace in Ukraine today.

T-Shirt Churchill Damn Near As Gangsta As "The Big Guy" Brandon

occrp  |  Ukrainian President Volodymyr Zelensky rode to power on pledges to clean up the Eastern European country, but the Pandora Papers reveal he and his close circle were the beneficiaries of a network of offshore companies, including some that owned expensive London property.

Key Findings

• Ukrainian President Volodymyr Zelensky and his partners in comedy production owned a network of offshore companies related to their business based in the British Virgin Islands, Cyprus, and Belize.
• Zelensky’s current chief aide, Serhiy Shefir, as well as the head of the country’s Security Service, were part of the offshore network.
• Offshore companies were used by Shefir and another business partner to buy pricey London real estate.
• Around the time of his 2019 election, Zelensky handed his shares in a key offshore company over to Shefir, but the two appear to have made an arrangement for Zelensky’s family to continue receiving money from the offshore.

Actor Volodymyr Zelensky stormed to the Ukrainian presidency in 2019 on a wave of public anger against the country’s political class, including previous leaders who used secret companies to stash their wealth overseas.

Now, leaked documents prove that Zelensky and his inner circle have had their own network of offshore companies. Two belonging to the president’s partners were used to buy expensive property in London.

The revelations come from documents in the Pandora Papers, millions of files from 14 offshore service providers leaked to the International Consortium of Investigative Journalists and shared with partners around the world including OCCRP.

The documents show that Zelensky and his partners in a television production company, Kvartal 95, set up a network of offshore firms dating back to at least 2012, the year the company began making regular content for TV stations owned by Ihor Kolomoisky, an oligarch dogged by allegations of multi-billion-dollar fraud. The offshores were also used by Zelensky associates to purchase and own three prime properties in the center of London.

The documents also show that just before he was elected, he gifted his stake in a key offshore company, the British Virgin Islands-registered Maltex Multicapital Corp., to his business partner — soon to be his top presidential aide. And in spite of giving up his shares, the documents show that an arrangement was soon made that would allow the offshore to keep paying dividends to a company that now belongs to his wife.

A comedian and actor who had been famous since the 2000s, Zelensky began his political rise a few years after taking on a starring role in the political satire “Servant of the People,” which began airing on the oligarch’s network in 2015. The show starred Zelensky as a humble history teacher whose anti-corruption rant in class is filmed by a student, goes viral online, and wins him national office.

In a case of life imitating art, Zelensky ended up winning the real-world Ukrainian presidency just three-and-a-half years after the show’s launch, with more than 73 percent of the vote.

Zelensky capitalized on widespread public anger at corruption, but his 2019 campaign was dogged by doubts over his anti-graft bona fides, given that his campaign was boosted by media belonging to Kolomoisky — who is accused of stealing US$5.5 billion from his own bank and funneling it offshore in concert with his partner, Hennadiy Boholiubov.

In the heat of the campaign, a political ally of incumbent President Petro Poroshenko published a chart on Facebook purporting to show that Zelensky and his television production partners were beneficiaries of a web of offshore firms that allegedly received $41 million in funds from Kolomoisky’s Privatbank.

Former General David Petraeus Central European Media Mogul?

ojim  | All his life, Petraeus has built up his career by courting those highest in power. His passage from the summits of military and intelligence fields to the ranks of financiers is typically seen as one of retirement or resignation. We are inclined to see it as a promotion.

The career of David Howell Petraeus follows the same ascending line and the same red thread: the manipulation of perceptions. His case illustrates a radical change in the world of media. Before him, no one could have imagined a former chief of intelligence at the head of the media, especially not in a country he had helped to destroy. An enemy general, head of the secret service, and a propaganda specialist, he has imposed himself on the media of a bombed nation, under the pretext of bringing objective information to it – a real tour de force. But nothing shocks hearts and minds already conquered.

In the 1970s and 1980s, KKR was the pioneer of LBO, or the “leveraged buyout” – leverage here signifying massive debt. The architect of this concept, Jerome Kohlberg, soon worried by the “overpowering greed that pervades our business life,” would leave the fund he had created, leaving only his K at the head of the acronym. Following his departure, it was the second K, Henry Kravis, who would lead these LBOs to skyrocket, thus earning KKR the unflattering nickname of the “Barbarians of Wall Street” (the best-seller and film “Barbarians at the Gate” are dedicated to their historical LBO on RJR Nabisco). They would remain the champions of this method, despite the practice often resulting in the dismemberment or even bankruptcy of the companies bought, as was the case with their other historical LBO: Energy Future Holdings. The same method is now practiced by Patrick Drahi, who built his media empire on colossal debt.

At the end of 2016, Donald Trump was considering Petraeus for head of US diplomacy, but he would remain with KKR, henceforth as a partner. Kravis and Petraeus are also members of the Council on Foreign Relations and regular participants in Bilderberg meetings. Kravis was ranked 38th on the list of the richest Jews by the Jerusalem Post.

The “financial barbarians” spearheaded by Petraeus have erected a true media empire, but they have done so very discreetly, shying away from public scrutiny. Rare, reluctant, and belated investigations have, however, eventually revealed some details.

In 2015, a “Report on Ownership Structure and Control over Media in Serbia” by the Serbian Anti-Corruption Council identified the lack of transparency of media ownership as its priority issue. The following year, the ownership structure of United Group was investigated by the Slovenian newspaper Delo in cooperation with the Organized Crime and Corruption Reporting Project (OCCRP). Their article “On the Dark Side of Telemach” finally allowed the people of the region a behind-the-scenes look at their prime source of information. What they found in their probe was a labyrinth of ghost offshore companies, mushrooming in tax havens in order to hide the original owners and their financial networks.

 

Zelenskyy: The Servant Of The People

chesno |   The financial statements from the Servant of the People indicate that the party collected 226 million hryvnias (~$8 million USD) in donations while Zelenskyy and his associates’ election accounts collected 200 million hryvnias (~$7 million USD).

These numbers themselves seem relatively unremarkable, but the sources and types of donations are much more interesting.

Chesno reported that from September 2018 to September 2019 only 94 people donated to Servant of the People. Of the 94 people, most of these were entrepreneurs or sole proprietors. Most of the donations came from Kyiv, followed by donations from Odessa and Dnipro.

Chesno also found that 44 legal entities donated to the Servant of the People and Zelenskyy, with 34 of these entities donating 3 million hryvnias ($105,000 USD), which is just under the 3.3 million hryvnia ($120,000) limit placed on donations. The majority of these donations came from either Kyiv or Odessa.

More than 99% of all donations were more than 100,000 hryvnias ($3,500 USD); only two donations of less than 10,000 hryvnias ($350) were received in this time period.

To contextualize these figures, the minimum wage in Ukraine is 6,000 hryvnias per month ($220 USD) and the median salary in Ukraine is around 21,000 hryvnias ($775 USD).

This means that the majority of donations received by Zelenskyy and Servant of the People were more than what most Ukrainians make over five or six months of full-time work.

Chesno also found that some of the 94 personal donations came from questionable sources. Chesno interviewed Tetyana Staneva, who lives in a village in Odessa and has no business registered in her name. She donated 1.5 million hryvnias ($52,000 USD) to the Servant of the People party, telling Chesno, “It’s not just my money, I just sent it. This is a group of like-minded people, we did it together.” It should be noted that this is against Ukrainian law, which says that individual citizen must make financial contributions to political groups personally, and not as a collective.

Investigators identified one of the 44 entities that donated as Yaroslava Reklama, LLC, registered to a 22-year old cook named Yaroslav Kuzka who works at one of Kyiv’s restaurants. Yaroslava Reklama LLC, transferred the maximum donation of 3.3 million hryvnias ($120,000 USD) to Servant of the People. Upon investigating the address to which Yaroslava Reklama LLC was registered, journalists found that tenants in the area had never heard of the company.

Another company, Prom Import LLC, was registered to a woman named Juliana Kuku. She complained on her social media accounts that business was “not going well”, but at roughly the same time, made a 500,000 hryvnia ($16,000 USD) donation to Servant of the People.

Chesno also found that of the 44 entities that donated to Servant of the People, four of them changed their addresses within two days of one another in December 2018, leading investigators to conclude that many of the donors were likely linked.

It is perhaps remarkable to consider that although only 94 persons and 44 legal entities donated to Servant of the People, that it grew to controlling 254 of 450 seats in the Verkhovna Rada despite not existing less than six months before.

Der Sonnenrand IS The Spirit Of The Ukrainian People...,

newsweek  |  An official of the U.S.-led NATO alliance has told Newsweek that the coalition did not notice what appeared to be a symbol associated with Nazism on the uniform of a Ukrainian soldier featured in a since-deleted photo on NATO's official Twitter account.

The image, posted Tuesday to commemorate International Women's Day, contained four images related to the current crisis in Ukraine, where a Russian military incursion was set to enter its third week.

"All women and girls must live free and equal. This international women's day we think of the remarkable women of #Ukraine," NATO tweeted alongside a Ukrainian flag emoji. "Their strength, bravery and resilience are symbolic of the spirit of their nation #IWD2022."

The first of the four images included what appeared to be a Ukrainian servicemember bearing a "Black Sun" on the chest area of her military fatigues. The symbol, also known in German as "Schwarze Sonne" or "Sonnenrad," is rooted in Nazi occultism and has been brandished by far-right elements across the globe, including in Ukraine, where it is featured on the official logo of the National Guard's Azov Regiment.

The image first appeared to be shared on social media on February 14 by the General Staff of the Armed Forces of Ukraine and was later syndicated by a number of outlets and agencies, and was featured prominently on the front page of The Guardian the following day. The symbol itself, however, is not readily visible, as it is nearly the same color as the green camouflage of the soldier's uniform.

Shortly after NATO shared the image, the symbol was noted by a number of social media users and then taken down swiftly.

 

A Russian Central Bank Digital Currency?

the-blindspot |  In the last few years, we can observe two very important technologies emerging in Russia:

• Every single shop till in Russia is now connected in real-time to the tax system. It is illegal for a shop to sell goods or services via a till which is not connected. Every receipt that you get has a cryptographic code evidencing that the transaction has been recorded for tax purposes in the central system. The man who delivered this project for the Federal Tax Service is now the deputy prime minister of Russia, Mikhail Mishustin.
• In the years since 2014, Russia has built its own internal clearing system called “Mir”. This has enabled Russian banks and commercial infrastructure to operate independently of the visa, mastercard and SWIFT as an internal matter.

Russia has already demonstrated the ability to roll technology out across the whole country in order to increase the control of the state. Russian citizens have not yet appreciated what this means – but the next step is now required and it is much bigger than before.

So why invade Ukraine?

Putin’s focus here is the manipulation of his own population.

He is going introduce a digital rouble and likely abolish cash. The technology to do this is already available. With this in place, he will be able to control his population through their wallets – monitoring everything that his people spend and deciding who should have access to money and who should not.

A software reset based around a new digital currency requires mass adoption and acceptance – and a population that is ready to accept a much higher level of centralised control.

In order to do this, he needs to isolate his country and ensure that his population is submissive and accepting of a significant change in how things work. This necessarily includes undermining confidence in the rouble as a cash-based currency and cutting Russia’s payment systems off from international markets. Then he can bring in a state-controlled digital alternative – something that the Chinese are already well on the path to implement for themselves.

This is the dictator’s dream – controlling the people via their wallets, absolutely and totally. As we have been saying ourselves: “banks not tanks”. How much he must be laughing when he hears this phrase. And we are willingly helping Putin here, we are his accomplices in this grand plan – not that there is much we can do about it.

And once the new system is in place and working, borders can come down, concessions of a kind can be made and maybe interactions with liberal western democracies resume – but now with control systems in place that can conserve his regime for the long term.

Why invade Ukraine so badly?

Putin may have overestimated the power of his forces, and underestimated the strength of resistance and vigor of international responses. But Putin probably does not need to win any war in Ukraine. He seems to be preserving his defence capabilities rather than needlessly wasting them. He is doing the invasion of Ukraine on the cheap because the invasion does not really have to succeed.

He has now achieved what may have been his objective all along – which is the financial and media isolation of Russia.

What he now needs to do is create a frozen conflict in Ukraine that he can maintain at minimum cost for as long as it takes for him to reset the control systems that he uses with his domestic population.  So that’s also why he is not sending in the expensive fighter jets, bombing Kiev or firing lots of hard-to-replace missiles. Of course, a land bridge to support his occupation of Crimea would be a useful by-product of the campaign – but this is not the main objective.

Putin has no actual interest in trying to wipe Ukraine off the map – only creating the conflict narrative needed to isolate his population for a period to get them to accept a new way of living day-to-day. And we should also note that he continues to sell his Ukrainian adventure to his local people as a “strategic operation” not as an invasion – which is because it might not be about an invasion (unless it has to be) and he has no intention of seeing it through.

If Putin is not mad?

So let’s assume that Putin is not actually mad. Plan A might not have worked – but he surely has plan B, whether or not he arrives there by design or accident.

He is a very clever and capable man – with enormous resources and he is focussed on maintaining control and absolute power over his Russian subjects. After more than 20 years in charge, he probably does not have any other choice.

Putin does not care about us. Putin does not care about the people of Ukraine. Perhaps we are all his useful fools. Whatever we might think, the agenda with Putin is always domestic. Perhaps the real targets and ultimate victims of the Ukrainian invasion are going to be Russian?

Are Russian Sanctions An Apocalyptic Self-Own? (The Black Horse...,)

strategic-culture |  In its triple strike of sanctions on Russia, the EU initially was not looking to collapse the Russian financial system. Far from it: Its first instinct was to find the means to continue purchasing its energy needs (made all there more vital by the state of the European gas reserves hovering close to zero). Purchases of energy, special metals, rare earths (all needed for high tech manufacture) and agricultural products were to be exempted. In short, at first brush, the sinews of the global financial system were intended to remain intact.

The main target rather, was to block the core to the Russian financial system’s ability to raise capital – supplemented by specific sanctions on Alrosa, a major player in the diamond market, and Sovcomflot, a tanker fleet operator.

Then, last Saturday morning (26 February) everything changed. It became a blitzkrieg: “We’re waging an all-out economic and financial war on Russia. We will cause the collapse of the Russian economy”, said the French Finance Minister, Le Maire (words, he later said, he regretted).

That Saturday, the EU, the U.S. and some allies acted to freeze the Russian Central Bank’s foreign exchange reserves held overseas. And certain Russian banks (in the end seven) were to be expelled from SWIFT financial messaging service. The intent was openly admitted in an U.S. unattributable briefing: It was to trigger a ‘bear raid’ (ie. an orchestrated mass selling) of the Rouble on the following Monday that would collapse the value of the currency.

The purpose to freezing the Central Bank’s reserves was two-fold: First, to prevent the Bank from supporting the Rouble. And secondly, to create a commercial bank liquidity scarcity inside Russia to feed into a concerted campaign over that weekend to scare Russians into believing that some domestic banks might fail – thus prompting a rush at the ATMs, and start a bank-run, in other words.

More than two decades ago, in August 1998, Russia defaulted on its debt and devalued the Rouble, sparking a political crisis that culminated with Vladimir Putin replacing Boris Yeltsin. In 2014, there was a similar U.S. attempt to crash the Rouble through sanctions and by engineering (with Saudi Arabian help) a 41% drop in oil prices by January 2015.

Plainly, last Saturday morning when Ursula von der Leyen announced that ‘selected’ Russian banks would be expelled from SWIFT and the international financial messaging system; and spelled out the near unprecedented Russian Central Bank reserve freeze, we were witnessing the repeat of 1998. The collapse of the economy (as Le Maire said), a run on the domestic banks and the prospect of soaring inflation. This combination was expected to conflate into a political crisis – albeit one intended, this time, to see Putin replaced, vice Yeltsin – aka regime change in Russia, as a senior U.S. think-tanker proposed this week.

In the end, the Rouble fell, but it did not collapse. The Russian currency rather, after an initial drop, recovered about half its early fall. Russians did queue at their ATMs on Monday, but a full run on the retail banks did not materialise. It was ‘managed’ by Moscow.

What occurred on that Saturday which prompted the EU switch from moderate sanctions to become a full participant in a financial war à outrance on Russia is not clear: It may have resulted from intense U.S. pressure, or it came from within, as Germany seized an opportune alibi to put itself back on the path of militarisation for the third time in the past several decades: To re-configure Germany as a major military power, a forceful participant in global politics.

And that – very simply – could not have been possible without tacit U.S. encouragement.

Ambassador Bhadrakumar notes that the underlying shifts made manifest by von der Leyen on Saturday “herald a profound shift in European politics. It is tempting, but ultimately futile, to contextually place this shift as a reaction to the Russian decision to launch military operations in Ukraine. The pretext only provides the alibi, whilst the shift is anchored on power play and has a dynamic of its own”. He continues,

“Without doubt, the three developments — Germany’s decision to step up its militarisation [spending an additional euro100 billion]; the EU decision to finance arms supplies to Ukraine, and Germany’s historic decision to reverse its policy not to supply weapons to conflict zones — mark a radical departure in European politics since World War II. The thinking toward a military build-up, the need for Germany to be a “forceful” participant in global politics and the jettisoning of its guilt complex and get “combat ready” — all these by far predate the current situation around Ukraine”.

The von der Leyen intervention may have been opportunism, driven by a resurgence of SPD German ambition (and perhaps by her own animus towards Russia, stemming from her family connection to the SS German capture of Kiev), yet its consequences are likely profound.

Just to be clear, on one Saturday, von der Leyen pulled the switch to turn off principal parts to Global financial functioning: blocking interbank messaging, confiscating foreign exchange reserves and the cutting the sinews of trade. Ostensibly this ‘burning’ of global structures is being done (like the burning of villages in Vietnam) to ‘save’ the liberal Order.

However, this must be taken in tandem with Germany’s and the EU decision to supply weapons (to not just any old ‘conflict zone’) but specifically to forces fighting Russian troops in Ukraine. The ‘Kick Ass’ parts to those Ukrainian forces ‘resisting’ Russia are neo-Nazi forces with a long history of committing atrocities against the Russian-speaking Ukrainian peoples. Germany will be joining with the U.S. in training these Nazi elements in Poland. The CIA has been doing such since 2015. (So, as Russia tries to de-Nazify Ukraine, Germany and the EU are encouraging European volunteers to join in a U.S.-led effort to use Nazi elements to resist Russia, just as in the way Jihadists were trained to resist Russia in Syria).

What a paradox! Effectively von der Leyen is overseeing the building of an EU ‘Berlin Wall’ – albeit with its purpose inverted now – to separate the EU from Russia. And to complete the parallel, she even announced that Russia Today and Sputnik broadcasts would be banned across the EU. Europeans can be allowed only to hear authorised EU messaging – (however, a week into the Russian invasion, cracks are appearing in this tightly-controlled western narrative – “Putin is NOT crazy and the Russian invasion is NOT failing”, warns a leading U.S. military analyst in the Daily Mail. Simply “[b]elieving Russia’s assault is going poorly may make us feel better but is at odds with the facts”, Roggio writes. “We cannot help Ukraine if we cannot be honest about its predicament”).

So Biden, finally, has his foreign policy ‘success’: Europe is walling itself off from Russia, China, and the emerging integrated Asian market. It has sanctioned itself from ‘dependency’ on Russian natural gas (without prospect of any immediate alternatives) and it has thrown itself in with the Biden project. Next up, the EU pivot to sanctioning China?

Did Anybody Even Pretend To Imagine Zelensky Was More Than A Juan Guido Type Trick?

nakedcapitalism |  Let’s begin with the money man.

The Billionaire: Igor Kolomoyskyi

Long-time Naked Capitalism readers will recall that our own Richard Smith introduced us to Igor Kolomoyskyi[2] eight years ago, in 2014:

Kolomoyskyi is one of the oligarchs charged with holding down the Eastern provinces of Ukraine[3], and recently mocked Putin, reputedly sensitive about his height, as a “schizophrenic shortarse” (apologies for the English intonation: American alternatives are invited); definitely a bridge-burning moment. Putin, meanwhile, shut down as much of Kolomoyskyi ’s bank as he could, in Crimea and Moscow. I’m not sure who started it, but we can certainly mark it down as a first-rate spat.

While that was brewing up, Kolomoyskyi might well have wanted something that looked an American protector, and got it, in the form of the VP’s son[, Hunter Biden]. Another guess: Kolomoyskyi is far too ebulliently Jewish to look like a neo-Nazi. A US connection with Kolomoyskyi might play well in circles keen to counter Russian complaints that the interim Kiev regime is dominated by “Fascists”.

No, I’m not going down this Hunter Biden rathole; those are not the transactions I am interested in now. I will note in passing that Kolomoyskyi ‘s style could be considered — let’s just go ahead and say it — crude. Kolomoyskyi and his running buddy, Gennadiy Bogolyubov, were business partners and founders of a thing called Privat Group:

Kolomoyskyi and Bogolyubo]fostered strong reputations as corporate raiders in the mid-2000s, becoming notorious for a series of hostile takeovers. Hostile takeovers Ukrainian style, that is, which often included the active involvement of Privat’s quasi-military teams. These schemes included, among others, a literal raid on the Kremenchuk steel plant in 2006, in which hundreds of hired rowdies armed with baseball bats, iron bars, gas and rubber bullet pistols and chainsaws forcibly took over the plant.

As of this writing, Kolomoyskyi was #1750 on the Forbes billionaires list, with a real time net worth (assuming Forbes didn’t outsource the data gathering to CDC) of $1.8 billion. Kolomoyskyi has also fallen out with the United States, amusingly including the Atlantic Council, but I assume all these tiresome bureaucratic obstacles will at some point be swept away, so that’s another rathole I’m not going down. Suffice to say that Kolomoyskyi still has his billions, which I expect go farther in Ukraine than they would here, and isn’t at all shy about funding thugs. Kolomoyskyi, like any billionaire, holds a portfolio of projects in the political field. I don’t know how many he has in toto, but there are at least two. Let’s look at them.

Nobody Thought The "Rules-Based" World Order Would Give Way This Fast...,

thesaker  |  So I am somewhat chagrined as I watch the speed at which this U.S.-centered financialized system has de-dollarized over the span of just a year or two. The basic theme of my Super Imperialism has been how, for the past fifty years, the U.S. Treasury-bill standard has channeled foreign savings to U.S. financial markets and banks, giving Dollar Diplomacy a free ride. I thought that de-dollarization would be led by China and Russia moving to take control of their economies to avoid the kind of financial polarization that is imposing austerity on the United States.^[2] But U.S. officials are forcing Russia, China and other nations not locked into the U.S. orbit to see the writing on the wall and overcome whatever hesitancy they had to de-dollarize.

I had expected that the end of the dollarized imperial economy would come about by other countries breaking away. But that is not what has happened. U.S. diplomats themselves have chosen to end international dollarization, while helping Russia build up its own means of self-reliant agricultural and industrial production. This global fracture process actually has been going on for some years, starting with the sanctions blocking America’s NATO allies and other economic satellites from trading with Russia. For Russia, these sanctions had the same effect that protective tariffs would have had.

Russia had remained too enthralled by free-market neoliberal ideology to take steps to protect its own agriculture and industry. The United States provided the help that was needed by imposing domestic self-reliance on Russia. When the Baltic states obeyed American sanctions and lost the Russian market for their cheese and other farm products, Russia quickly created its own cheese and dairy sector – while becoming the world’s leading grain exporter.

Russia is discovering (or is on the verge of discovering) that it does not need U.S. dollars as backing for the ruble’s exchange rate. Its central bank can create the rubles needed to pay domestic wages and finance capital formation. The U.S. confiscations of its dollar and euro reserves may finally lead Russia to end its adherence to neoliberal monetary philosophy, as Sergei Glaziev has long been advocating, in favor of Modern Monetary Theory (MMT).

The same dynamic of undercutting ostensible U.S aims has occurred with U.S. sanctions against the leading Russian billionaires. The neoliberal shock therapy and privatizations of the 1990s left Russian kleptocrats with only one way to cash out on the assets they had grabbed from the public domain. That was to incorporate their takings and sell their shares in London and New York. Domestic savings had been wiped out, and U.S. advisors persuaded Russia’s central bank not to create its own ruble money.

The result was that Russia’s national oil, gas and mineral patrimony was not used to finance a rationalization of Russian industry and housing. Instead of the revenue from privatization being invested to create new Russian means of protection, it was burned up on nouveau-riche acquisitions of luxury British real estate, yachts and other global flight-capital assets. But the effect of sanctions making the dollar, sterling and euro holdings of Russian billionaires hostage has been to make the City of London too risky a venue in which to hold their assets – and for the wealthy of any other nation potentially subject to U.S. sanctions. By imposing sanctions on the richest Russians closest to Putin, U.S. officials hoped to induce them to oppose his breakaway from the West, and thus to serve effectively as NATO agents-of-influence. But for Russian billionaires, their own country is starting to look safest.

For many decades now, the U.S. Federal Reserve and Treasury have fought against gold recovering its role in international reserves. But how will India and Saudi Arabia view their dollar holdings as Biden and Blinken try to strong-arm them into following the U.S. “rules-based order” instead of their own national self-interest? The recent U.S. dictates have left little alternative but to start protecting their own political autonomy by converting dollar and euro holdings into gold as an asset free from political liability of being held hostage to the increasingly costly and disruptive U.S. demands.

U.S. diplomacy has rubbed Europe’s nose in its abject subservience by telling its governments to have their companies dump their Russian assets for pennies on the dollar after Russia’s foreign reserves were blocked and the ruble’s exchange rate plunged. Blackstone, Goldman Sachs and other U.S. investors moved quickly to buy up what Shell Oil and other foreign companies were unloading.

Did You Know That Russia Had Banned All GMO Foods?

loc.gov |  On June 29, 2016, the Federation Council of the Russian Federation Federal Assembly (the upper chamber of the legislature) adopted the Federal Law on Amending Legislative Acts of the Russian Federation in Regard to Improvement of State Control in the Field of Genetic Engineering. (Press Release, Federation Council, Ban on Growing and Production of Genetically Modified Organisms on Russian Territory Is Established (June 29, 2016) (in Russian); text of the Law and Legislative Information available at Bill No. 714809-6, State Duma website (last visited June 30, 2016).)

The new Law imposes a ban on food stuffs produced using genetically modified plants or animals. As stated in the new Law, the legislation “strengthens measures aimed at monitoring of all types of activities associated with GMOs, preventing release of GMOs into the environment, and ameliorating the consequences if such a release occurs.” (Law, art. 1(1).) Among the federal laws amended by the new Law are the Law on Seed Production and the Environmental Protection Law. Provisions prohibiting “any use of seeds derived from through genetic modification, including those that cannot reproduce or transfer inherited genetic material,” and “reproduction of animals whose genetic program has been changed by using genetic engineering methods” were added to these acts. The only exemption is made for experimental research work. (Id. arts. 2 & 3.)

The new ban, which received expressions of support and approval from the legislative assemblies of eight Russian provinces, will enter into force as soon as it is officially published. (Id.)

Registration of GMOs

New registration procedures for genetically engineered or modified organisms and for the issuance of permits for work in this field are established by the new Law. Violations of the newly introduced prohibitions will be punished with increased fines; federal and local officials of the agencies in charge of monitoring activities related to GMOs have the right to issue these fines. (Id. art. 4.)

The new restrictions extend to imported products and the Law provides for new registration requirements and procedures applicable to importers as well. Import of genetically modified organisms and products containing GMOs is not totally prohibited, but is subject to registration with the federal government. The Law expands the right of the executive government to prohibit the importing of GMOs and products containing GMOs into Russia because of the potential harmful impact of such products on humans or the environment. (Legislative Information, supra.)

The Coming Surge In Food Prices Will Devastate The Poor

TAC  |  s a twenty-something living in Washington, you have to find ways to cut costs. A lot of people here go without cable. Others sell their cars and rely on public transport. I like television and the open road, so I gave up food instead.

I eat the same thing every week. It’s a joke around the office. On Saturday, I’ll buy chicken breasts, ground turkey, sweet potatoes, asparagus, protein bars, eggs, and wheat bread at the supermarket. If I play my cards right, I can walk out of the store having paid less than $60. For five days’ worth of food, that’s not bad. I cook some of it Sunday and the rest on Wednesday night. I hate it, but it’s been pretty good on my waistline.

Even on the Club Fed diet, I’m feeling the pinch of rising food prices. Bread has become more expensive in the past three months. Eggs have, too. Buying store-brand chicken is like buying Ibérico ham.

I’ll survive. I can always cut cable. For wannabe proles in the laptop class, the rise in food prices has been at most an inconvenience. But the outbreak of war in Ukraine and the coming disruptions in global food markets will immiserate the actual working class in this country and may kill thousands of the world’s poor.

Well before war broke out in Ukraine, prices in the food industry were surging. U.S. food prices rose a whopping 7.5 percent between 2021 and 2022. Indexed global food prices hit an all-time high last month.

The causes are familiar. Supply-chain disruptions have slowed production and slashed supply. The sight of barren grocery shelves has incentivized consumers to buy in bulk, sending aggregate demand skyward. Labor-retention issues and slumping workforce participation rates have reduced output and further cut supply. Labor issues have reached a point where meatpacking companies like Tyson plan to automate their processing plants to weather labor shortages.

At the same time, the prices of industry inputs like oil, animal feed, and fertilizer have soared. The price of urea—a popular, highly soluble nitrogen-based fertilizer—nearly doubled at the pivotal New Orleans port last year. In input-dependent industries like agriculture, where producers net only 15 percent of final retail cost, consumers inevitably bear most of the increase in input costs.

The effects of the war in Ukraine and the sanctions imposed against the Russian government and economy threaten to accelerate these trends. Russia is the world’s leading producer of wheat; Ukraine is fifth. Together, they are responsible for some 30 percent of the world’s wheat exports. War will almost certainly disrupt planting season in both Russia and Ukraine.

What Will Russia Find In U.S. Bioweapons Labs In The Ukraine?

veteranstoday  |  I have often reported that the U.S., more specifically the Pentagon, operates several bioweapons labs in Ukraine. The last time I reported on this was on January 27. The U.S. has always refused international inspections of its labs, so no one knows what they are researching in these labs. But we can assume that Russian special forces will take a closer look at these labs in the coming days.

And this seems to be exactly a can of worms. A tweet was published on Twitter about this and the user was immediately blocked. I won’t go into the content of the tweet, which can still be found in an Internet archive. If you are interested, you can view it here [1].

My point is that Twitter was so quick to delete a tweet and its author merely because he pointed out that there are U.S. bioweapons labs in Ukraine and that it looks like their capture is one of the important targets of the Russian military operation.

The US Army regularly produces deadly viruses, bacteria, and toxins in direct violation of the UN Convention on the prohibition of Biological Weapons. Hundreds of thousands of unwitting people are systematically exposed to dangerous pathogens and other incurable diseases.

Biowarfare scientists using diplomatic cover test man-made viruses at Pentagon bio laboratories in 25 countries across the world. These US bio-laboratories are funded by the Defense Threat Reduction Agency (DTRA) under a $ 2.1 billion military program– Cooperative Biological Engagement Program (CBEP) and are located in former Soviet Union countries such as Georgia and Ukraine, the Middle East, South East Asia, and Africa.

Biowarfare scientists under diplomatic cover

Among the set of bilateral agreements between the US and Ukraine is the establishment of the Science and Technology Center in Ukraine (STCU) – an International organization funded mainly by the US government which has been accorded diplomatic status.

The STCU officially supports projects of scientists previously involved in the Soviet biological weapons program. Over the past 20 years the STCU has invested over $285 million in funding and managing some 1,850 projects of scientists who previously worked on the development of weapons of mass destruction.

The US personnel in Ukraine work under diplomatic cover.

364 Ukrainians died from Swine Flu

One of the Pentagon laboratories is located in Kharkiv, where in January 2016 at least 20 Ukrainian soldiers died from Flu-like virus in just two days with 200 more being hospitalized. The Ukrainian government did not report on the dead Ukrainian soldiers in Kharkiv.

As of March 2016, 364 deaths have been reported across Ukraine (81.3 % caused by Swine Flu A (H1N1) pdm09 – the same strain which caused the world pandemic in 2009).

 

 

Why Did Neftali Bennett Have To Urgently Pay V.V. Putin A Visit?

gilbertdoctorow  |  In recent days, in what is surely a coordinated action by NATO and European authorities acting hand in glove, Russian news broadcasters have been taken off servers in Europe and effectively made inaccessible to the entire European public.  This modern day “jamming” concerns not just RT or Sputnik, the best known state owned voices of Russia because they broadcast in English and other languages that we all know, but virtually every news outlet based in Russia, public and privately owned, and broadcasting in the Russian language.

In this regard, EU Member States are waging an Information War of greatest significance that is absolutely not mentioned, let alone discussed in Western media, whether mainstream or otherwise. The victim is the European public, which, if bad turns to worse, will not know what hit them and why when cruise or hypersonic missiles descend on NATO bases or infrastructure. This enforced silence prevents Western civil society from taking any steps to save its own neck in what have become wartime conditions on the Continent.

The blockage is not uniformly enforced at all times, so that some Russian print and video producers can be accessed at one moment or another before going black.

In particular, one vitally important 3.30 minute video of Russian military spokesman Igor Konoshenkov yesterday and this morning remains accessible on youtube. I will detail below what he was saying, because the messenger and the message concern whether you and I will live to see another day.

Konoshenkov’s points in this video were the following:

1) Russia has now destroyed the entire Ukrainian air force that remained within the confines of Ukraine

2) There are also Ukrainian fighter jets that left the country and are now parked in Romania and other neighboring countries. If these planes are allowed by local authorities to take off from Romania, etc. and enter Ukrainian air space, Russia will consider the country from which they took off as a co-belligerent and will take appropriate action against them. The subtext is that Russia is ready to make missile strikes against NATO airfields that transgress the rules of war.

3) Russia is now about to destroy all military industrial complex factories in Ukraine and has formally warned all employees of these factories to leave the premises and stay away

4) Russia has received documentation from Ukrainian health authorities on the production of biological weapons  (anthrax, Siberian plague and much more) by Ukrainian labs in Kharkiv and elsewhere in cooperation with the United States. Stocks of such weapons were being stored in direct violation of international conventions.  On 24 February, in advance of the start of Russia’s ‘special military operation’ in Ukraine, the Ukrainian health authorities destroyed these illicit biological weapons. However, Russia has obtained the official documentation certifying this destruction of what should never have been there. Moscow is now studying this documentation, which indicates United States participation in the development of the biological weapons and will publish the incriminating documents, starting from yesterday.

5) Russia has also obtained documentation proving that Ukraine, in cooperation with the United States, was since the presidency of Petro Petrushenko, actively developing nuclear weapons, including “dirty” nuclear devices using readily available fuel from its reactors.  Such activity was going on in the Zaporozhye nuclear plants, and it is very likely that the fire reported at a ‘training unit’ adjacent to an active reactor two days ago related to destruction of incriminating papers, if it was not otherwise a ‘false flag’ operation to allege a Russian attack on the power station, in violation of international law.

When The Zelensky Toilet Paper Hit The Biden/Schwab Butt Crack....,

thehill |  Ukrainian President Volodymyr Zelensky on Friday slammed NATO as being "weak" and "underconfident" for refusing to establish a no-fly zone over Ukraine as his country fights in "the worst invasion since World War II."

In a Facebook video shared and translated by Axios on Friday, Zelensky said Ukrainians have fought fearlessly against Russians invading their country — and will continue to — but have been thrown into "nine days of darkness" without assistance from NATO.

"Knowing that new strikes and casualties are inevitable, NATO deliberately decided not to close the sky over Ukraine," Zelensky said in an emotional video address.

The president urged NATO to think about "all those people who will die because of you."

"Because of your weakness, because of your disunity, all the alliance has managed to do so far is to carry fifty tons of diesel fuel for Ukraine," he said. "Is this the alliance you were building?"

A no-fly zone, implemented to prohibit enemy aircraft from flying into a region and attacking, would cut off Russian air support and blunt the advance of Russian troops toward Kyiv.

The Biden administration, along with the NATO security alliance, has so far rebuffed Ukrainian calls to establish a no-fly zone over fears that it could spark a direct military confrontation between the U.S. and Russia.

“It would require, essentially, the U.S. military shooting down Russian planes and prompting a potential direct war with Russia, the exact step that we want to avoid," press secretary Jen Psaki told reporters on Thursday.

In his video address, Zelensky disputed the fact that it would result in a direct confrontation between NATO countries and Russia, calling it "self-hypnosis."

"I do not know how you can protect and whether you can protect NATO countries," Zelensky said. "You will not be able to buy us off with liters of fuel for liters of our blood."

How Does A Worm Like Zelensky Live With Itself?

southfront |  What can we deduce from this short interview:

1. Russia will prevail and Ukraine will lose.
2. Ukraine is going to be partitioned. Putin is going to create the buffer he needs to assure his country’s security.
3. Whoever governs the western part of Ukraine will be required to declare their “neutrality” (in writing) and reject any offers for NATO membership. If they violate that promise, they will be removed by force.

But here’s the important thing: All of the main actors in this fiasco knew from the very beginning that Ukraine had no chance of defeating the Russian army. That was a foregone conclusion. So–what we want to know– is why Zelenskyy didn’t take steps to avoid the tragedy before it unfolded?

The answer to this question helps to reveal ‘who Zelenskyy really is’.

Ask yourself this: Why didn’t Zelenskyy negotiate with Putin when he had the chance? Why didn’t he pull back his 60,000 troops from the east? Why didn’t he stop Washington’s weapons shipments? Why didn’t he implement the Minsk Treaty? Why didn’t he reject NATO’s offer for membership?

Finally, why was so intent on doing the things that he knew would anger Moscow and increase the likelihood of a war?

These questions are not hard to answer.

Zelenskyy has been acting on orders from Washington from the get-go. We know that. He’s also been implementing Washington’s agenda not his own and certainly not Ukraine’s. We know that, too. But that does not absolve him from responsibility. After all, he is a full-grown adult capable of distinguishing between right from wrong. He knows what he’s doing, and he knows that it’s wrong; worse than wrong, it’s inexcusable. He’s sending men to die in a war he knows they can’t win; he’s inflicting incalculable suffering and injury on his own people for no reason at all; and –worst of all– he’s cleared the way for the dissolution of Ukraine itself, the country he was sworn to defend. That country is going to be broken into bits as part of a final settlement with Russia, and Zelenskyy will share a good part of the blame.

How does a man like this live with himself?

Does The West Err In Imagining Russians Want To Be Degenerate Consumers Too?

turcopolier  |  Putin’s target is just as much domestic constituencies as it is the West, perhaps more so. The aim is to force Russia’s Western-leaning élites into line – and that includes the Central Bank. A total rift with the West was never going to be possible otherwise. This way he presents the split as a fait accompli and all patriots will be expected to get behind his policies. If it is successful Putin will go down in history as one of the most brilliant statesmen of all time. Judo is most certainly at play in nailing shut the door. 

For example, our sanctions on the oligarchs who stash their wealth outside the country ought to help repatriate some of that wealth to Russia. The ones who choose to stay abroad Russia does not want anyhow. Putin sees this as a civilizational war, with Russian civilization incompatible with increasingly degenerate Western values. 

My perspective is Russia is being enormously strengtened by the current reaction of the West, the same way it happened in 1941. It is a huge miscalculation and is not good.

I’m from Eastern Europe – a native Bulgarian and I also know Russian because I studied in school at the times of the Soviet Union. We are probably culturally closer to Russians than even Ukrainians in some aspects.

In the Eastern Ortodoxy doctrine, the closer to the truth you are, the closer you are to God. That means the beliefs are not oriented towards commercial success, like in the Protestant world for example, where hard work will get you closer to heaven. Only doing the right thing will grant you a path to heaven, and if you need to be poor, then so be it. Even though releigion is not something significant today, it has shaped the mind of the whole Eastern Ortodox civilization. And what it means in practice is news about markets and inflation and poverty are having much smaller effect on Russians than what Westerners think. Of course Russians are worried about inflation and price rises – but at the same time they pride themselves because of doing the right thing, and this is stronger. The recent sharp increase in Putin’s rating confirms that – no amount of misery will stop such minded people when they beleive they are on the right path.

Unlike the West, where the Law defines public truth, in the Eastern Ortodoxy it is not the Law, but your own feeling of righteousness. If the law is against your gut feeling, it is not something you generally need to do. Hence the chaos and lack of strict rule of law in the whole Eastern Ortodox world – from parking & driving, to personal quarrels. The West sees this as some form of corruption, which it is not – it is just people beleiving in their own righteousness, not in the righteousness of the law . By the way, Geoffrey of Villehardouin “On the Conquest of Constantinople” says basically the same, and he has written his book in 1204. That is in essence the dilemma of the East, the ruler is expected to be a saint, and when he is not, people are allowed to follow their own judgement.

So what is happening now is Russians are rallying around their leader and are getting enormously dedicated to destroy the “unjust” and “unrighteous”. Nuclear war is a very real option unless the West doesn’t ease tensions – it is really obvious to me. In the Russian collective mind, Realpolitic that was played was heresy.

N.B. I’m not pro-Russian – there is ambivalent relationship between us and the Russians. Going back in history, we gave them the Cyrilic alphabet (sponsored by Bulgarian king), our monks brought Ortodox Christianity there (not Byzantines, it was Bulgarians like St Cyprian that converted our wild Northern cousins in the middle ages; “Old church slavonic” is the same as “Old Bulgarian” ). In their turn they liberated us from the Ottomans, but wanted to turn us into Russians which we really hated, and then they unsuccessfully attacked us in WW1 and occupied us after WW2. I’m just saying they see things differently and I’m trying to give a perspective.

Russians are done with the West. They regard the US especially as breakers of their word, hence, untrustworthy (“agreement-incapable”), without honor, and morally degenerate”. Even Russian liberals like Medvedev are reversing course away from the West.

We can surmise that the Chinese have a similar take, but they were never Western-oriented like the Russian liberals anyway. People in the West, and in the US especially, don’t know that a core issue for Russia in the Ukraine matter is neo-Nazism because this has been suppressed in the narrative in the US. They are not kidding when they say this is about de-Nazification and bring to justice those guilty of “genocide” in Donbass, where over 10, 000 Russian Ukrainians have been killed by the Azov Battalion forces, who view Russians as Untermenschen.

 

 

Who Is A Fan Of T-Shirt Churchill's Greatest Hits?

“Zelensky was elected in a landslide victory in 2019 on the promise of easing tensions with Russia and resolving the crisis in the breakaway republics in east Ukraine. He has made no attempt to keep his word on either issue.” https://www.unz.com/mwhitney/the-man-who-sold-ukraine/#comment-5212744  He betrayed the electorate.

slate |  Since the Russian invasion of Ukraine, the public response from pundits and online observers alike has largely involved going bananas over Ukrainian President Volodymyr Zelensky. For a guy who used to be a comedian, his leadership has demonstrated qualities many people—particularly in the military subreddits I’ve been reading, full of young service members and vets—just haven’t witnessed except in movies and history books. Having come of age in a world where major world leaders are so insulated from personal risk that they’re whisked away by security teams at the first whiff of danger, many members of the American military are stunned that a commander in chief would actually risk his or her own skin—let alone brashly announce, when the United States offered him safety, that he needs “ammunition, not a ride.” The U.S. Marine Corps subreddit contains a post titled “Volodymyr Zelensky is about as motivating of a leader as I’ve seen in our lifetime,” with one sample reply reading: “Yep. I’d follow that guy into hell.” The idea of a political leader willing to die with his people has struck many outside the military, too, as unthinkably brave. And more than a little thrilling. Zelensky has become a hero to much of the world—even inspiring citizens of other nations to ask how to volunteer to fight for Ukraine. To the extent that this has been an information war for hearts and minds in much of the world, Ukraine has undoubtedly won.

An information war that successful deserves to be examined, both for its own sake and in order to better understand the desires the Ukrainian spectacle seems to be so spectacularly satisfying in the international audience (beyond the natural moral sympathy the country is receiving). The Zelensky legend, while not being false, also isn’t purely organic. It’s being quite skillfully produced. This is a mediated war, calibrated to appeal to a specific brand of international solidarity—of sides in a global struggle—that hasn’t been around in a very long time.

And it’s working: There’s a drunkenness to the explosion of pro-Ukrainian sentiment. Public anger on behalf of Ukrainians has gone beyond official sanctions and into a plethora of bizarrely small-bore initiatives—like bars no longer serving Russian vodka—intended to recognize the aggressor’s villainy. Pro-Ukrainian observers are saying some wild things as they try to explain their outrage and grief at the invasion, and the expressive extremes are telling. One journalist said, for instance, that “the unthinkable has happened to them. This is not a developing Third World nation. This is Europe.” CBS News foreign correspondent Charlie D’Agata said last Friday that Ukraine “isn’t a place, with all due respect, like Iraq or Afghanistan, that has seen conflict raging for decades. This is a relatively civilized, relatively European—I have to choose those words carefully, too—city, where you wouldn’t expect that or hope that it’s going to happen.” Civilized. He later apologized, but it’s essential that we understand exactly what he meant, because it may not be elegant or inclusive, but it is telling. These aren’t isolated episodes. Something weird is happening, and I think it’s this: Pro-Ukraine feelings in search of an organizing principle are coalescing around a category of identification that hasn’t enjoyed real, popular international relevance in a good long while. I’m speaking of “the West”—a category Vladimir Putin has long railed against, but which Westerners themselves haven’t, at least in recent years, claimed with much personal attachment or ideological loyalty.

And these are feelings being shaped and inspired in part by the “cinematic” quality of the media coming out of Ukraine.

Take Zelensky. He’s become a star because he already was one. The man has great dramatic instincts. He is doing brave things and he’s very ably disseminating media of himself doing it. In one viral clip, he’s in only a T-shirt, unshaven, answering questions before being informed on camera that the Holocaust memorial was being bombed and saying, “That is Russia, my congratulations.” The clip has mostly circulated as a “reaction video”; people are extremely interested in watching Zelensky react.

 

Situation Report On The Economic War With Russia

johnhelmer |  The ancient difference between the confiscation of your assets and a tax by force was the mandate of Heaven. This was the public announcement from God, transmitted through fellows wearing funny hats and costumes accompanied by drumbeats and whistles. When God wants to stick you up, they said, you’d better hand over your money or your life.

These days the rulers of the US, the European Union (EU) and Canada call this the “Rules Based Order”. That’s to say:  I make the rules, you take my orders. The meaning is still the ancient one – your money or your life.

The Chinese empire has been famous for a dress-up ceremony in which those who made the rules received the agreement of those who took the orders. It was called the kowtow. Nine kowtow was the standard,  plus expensive gifts.   The Roman empire and most of its successors, called it tributum, tribute.  Over the years, other names for it have been tax, protection money, and a gender specific form of kowtow popular in England and France called the ius primae noctis, droit de seigneur, or lord’s right.

The quaintness of the ceremony varies from place to place.  The British empire demanded its colonial peoples wave a small Union Jack in the left-hand corner of their independence flag. They also required their subject children’s pilgrimage at least once in their lives to the fence of Buckingham Palace in London for at least one performance of the Changing of the Guard.

In keeping with the times since 1945, the US empire has been more straightforward. It doesn’t require pilgrimages to the White House fence for children of tender age.  It does require you keep the US dollar in your pocket, or the local currency whose value is fixed in proportion, and whose state surpluses of taxation and pension funds must be stored in US Treasury notes, as well as the dollar.

In Russia, starting in 1991, Boris Yeltsin innovated on these measures by inviting US advisors  to run the Russian economy, which Yeltsin paid for by imposing a 100% tax on ordinary Russians’ salaries. This started the system of oligarchs whom Yeltsin allowed to dispatch and store, tax free, in the US, UK and EU as much state capital and income as they could carry off.  How that system has worked for the past thirty years, oligarch by oligarch, has been the subject of analysis here.    The effort has not gone without recognition.

At this very moment, the oligarchs are facing a Christian tax, but it’s not the Russian one you might think they have earned.  Instead, the 100% tax is being imposed in the form of  confiscation statutes by the US, UK and EU.   This is  not economic warfare so much as the application of the principle that what the oligarchs have been doing to Russians should now be done to them, according to the Mandate of Heaven as recorded in the Gospel of Matthew 7:12, Luke 6:31.

The Mandate of Heaven can also be found on the bottom of the US dollar note. That’s the signature line where the Treasurer of the United States and the Secretary of the Treasury promise to pay “all debts public and private”. Like other US treaty signatures, this no longer applies to  Russians, common ones, oligarchs, or the state, according to this novelty in the Rules Based Order. Russians must now sell everything in the country of value for US dollars – oil, gas, coal, uranium, aluminium, titanium, wheat, potash, urea, bank loan debts, airplane leases, etc. But  those dollars cannot be used by Russians to buy anything else. That value has been confiscated.

The response is still being formulated in Moscow. Russian government officials, members of the State Duma, the Central Bank of Russia, the General Staff, the oligarchs and their lobbyists have yet to agree. The terms of the debate are still largely secret; here was an opening shot against the Central Bank by Sergei Glazyev.

Who Is America's Greatest Rival? Russia? China? Or Europe?

colinsims |  First of all, who is America’s greatest rival? Is it Russia? China?

What about Europe?

Think about it. The U.S. has already demonstrated its willingness to expend extraordinary levels of blood and treasure to topple any Middle Eastern dictator who so much as thinks the word “euro” while he lies awake at night. So, what about the Europeans themselves? After all, they’re the ones who issued the dreaded euro in the first place. The Chinese yuan—for a myriad of reasons—isn’t going to replace the dollar any time soon. Neither is the Russian ruble. But the euro stands a chance. It’s the world’s second largest reserve currency and could easily become number one. If it succeeds, the economic blow to the United States would be catastrophic. The effects would be far more devastating than anything Russia or China could do, short of launching a full-scale nuclear attack. So I ask you again, who is America’s greatest rival?

It’s Europe.

So, from that perspective, let’s take a look at what America’s objectives truly are with Ukraine, regardless of dubious public pronouncements.

A December, 2021 article from the BBC quoted an anonymous high-ranking European intelligence official who said, “Let's not be blind. If Russia initiates a scenario of any kind it will also initiate action against Nato members.” The official added, “To think war could be contained to one nation would be foolish.”

It is also likely that a Russian invasion of Ukraine would greatly exacerbate growing tensions within the European Union. For example, E.U. diplomats have already stated that a Russian incursion will be met with severe economic repercussions. However, as one security analyst at the European Policy Centre put it, “Putting tough sanctions on Russia can also have consequences for the E.U. because the economies (Russia’s and Europe’s) are linked … There could be costs to pay that some member states do not want to pay.”

That statement crystalizes one of the E.U.’s biggest problems: economic policies—especially monetary ones from the European Central Bank—are seldom one-size-fits-all. So, what’s good for northern states like Germany or Denmark is not always good for southern states like Greece or Italy. This “North-South” divide has fostered a growing fissure within the E.U. for years, and if Russia invades Ukraine, it will grow even wider.

In short, that’s good news for the U.S. dollar. The more division within Europe the better, because it calls into question the euro’s future existence—no one is going to invest in that, it’s too risky. That leaves the dollar as the only option. So, no matter how screwed up America is, either at home or abroad, it’s still a better bet than anyone else. That is U.S. foreign policy in a nutshell.

But what about Russia? Does the U.S. gain anything from Russia getting bogged down in a Ukrainian quagmire?

Absolutely!

In the book, “Implosion: The End of Russia and What it Means for America,” author Ilan Berman argues that the biggest worry regarding Russia is not its strength, but its weakness. This is primarily due to the country’s rapidly shrinking population and abysmal mortality rate. (The average Russian male dies at 59.) The problem with this, from a Western perspective, is that if the Russian government collapses, who is going to safeguard the roughly 7,000 nuclear weapons currently at its disposal?

Isn't De-Dollarization A Necessary Pre-Requisite For A Global Digital Currency?

thecradle  |  On the confiscation of Russian foreign reserves and cut-off from SWIFT, the main point is “it will take some time for Russia to put in a new system, with China. The result will end dollarization for good, as countries threatened with ‘democracy’ or displaying diplomatic independence will be afraid to use US banks.”

This, Hudson says, leads us to “the great question: whether Europe and the Dollar Bloc can buy Russian raw materials – cobalt, palladium, etc, and whether China will join Russia in a minerals boycott.”

Hudson is adamant that “Russia’s Central Bank, of course, has foreign bank assets in order to intervene in exchange markets to defend its currency from fluctuations. The ruble has plunged. There will be new exchange rates. Yet it’s up to Russia to decide whether to sell its wheat to West Asia, that needs it; or to stop selling gas to Europe via Ukraine, now that the US can grab it.”

About the possible introduction of a new Russia-China payment system bypassing SWIFT, and combining the Russian SPFS (System for Transfer of Financial Messages) with the Chinese CIPS (Cross-Border Interbank Payment System), Hudson has no doubts “the Russian-China system will be implemented. The Global South will seek to join and at the same time keep SWIFT – moving their reserves into the new system.”

I’m going to de-dollarize myself

So the US itself, in another massive strategic blunder, will speed up de-dollarization. As the managing director of Bocom International Hong Hao told the Global Times, with energy trade between Europe and Russia de-dollarized, “that will be the beginning of the disintegration of dollar hegemony.”

It’s a refrain the US administration was quietly hearing last week from some of its own largest multinational banks, including notables like JPMorgan and Citigroup.

A Bloomberg article sums up their collective fears:

“Booting Russia from the critical global system – which handles 42 million messages a day and serves as a lifeline to some of the world’s biggest financial institutions – could backfire, sending inflation higher, pushing Russia closer to China, and shielding financial transactions from scrutiny by the west. It might also encourage the development of a SWIFT alternative that could eventually damage the supremacy of the US dollar.”

Those with IQs over 50 in the European Union (EU) must have understood that Russia simply could not be totally excluded from SWIFT, but maybe only a few of its banks: after all, European traders depend on Russian energy.

From Moscow’s point of view, that’s a minor issue. A number of Russian banks are already connected to China’s CIPS system. For instance, if someone wants to buy Russian oil and gas with CIPS, payment must be in the Chinese yuan currency. CIPS is independent of SWIFT.

Additionally, Moscow already linked its SPFS payment system not only to China but also to India and member nations of the Eurasia Economic Union (EAEU). SPFS already links to approximately 400 banks.

With more Russian companies using SPFS and CIPS, even before they merge, and other maneuvers to bypass SWIFT, such as barter trade – largely used by sanctioned Iran – and agent banks, Russia could make up for at least 50 percent in trade losses.

The key fact is that the flight from the US-dominated western financial system is now irreversible across Eurasia – and that will proceed in tandem with the internationalization of the yuan.