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Sandu targets media freedom in Moldova with new censorship institution

By Ahmed Adel | May 30, 2023

President Maia Sandu announced during a press briefing that a new tax-payer-funded institution intended to supervise and limit press freedom in Moldova would be established. Amid the economic meltdown in the country, Sandu is trying to control the media narrative while also attacking Russia.

“The best antidote against the information war is the development of citizens’ resistance to the real facts. Today I am announcing the legislative initiative to create an institution to combat propaganda and defend citizens from manipulation. I will propose to the Parliament the creation of the National Center for Information Defense and Combating Propaganda, called Patriot. The institution will have two basic responsibilities: to transmit truthful information to citizens and to identify, evaluate and combat disinformation,” Sandu said on May 29.

According to the president, the legislation initiative will be sent to the Parliament by the end of June.

“I know that this announcement will stir the hornet’s nest working against the Republic of Moldova. They will invoke the right to freedom of expression. But this right cannot be a screen for lying and intoxication. I have confidence in the Republic of Moldova, I am sure that we have a chance to build a European state, I want the citizens to have confidence in the Republic of Moldova,” Sandu added.

Her ambition to limit Russian-friendly media to impose a Western narrative monopoly in a dictatorial manner comes as the EU steps up its support for Moldova. 46 EU and European leaders will be in Chisinau on June 1 to offer financial and political solidarity with Moldova and show strength against Russia.

French President Emmanuel Macron initially envisaged the European Political Community (EPC) as a platform for unity across the wider European front. The EPC will meet for the second time in Chisinau, only eight months after its inaugural meeting. The meeting brings together the leaders of the 27 EU member states and Ukraine, Turkey, the UK, and other countries in the Balkans, but not Russia or Belarus.

Security and energy supplies, which have been part-funded by the European Bank for Reconstruction and Development (EBRD), are expected to be at the top of the agenda. The EBRD invested €525 million in Moldova in 2022, accounting for 4% of its GDP. The investment comes as Moldova struggles with high inflation and the economic repercussions of the war in neighbouring Ukraine, in addition to problems in Transnistria, a breakaway region and post-Soviet conflict zone with a majority Slavic (Russian-Ukrainian) population.

To assist Sandu’s ambition to sever Russian-Moldovan ties, the EU will provide financial muscle with the help of the EBRD and an €87 million EU contribution to so-called non-military logistical aid. This aid will include a mission in Chisinau, which will staff up to 50 officials. Opening on May 30, the office aims to build Moldova’s resilience against disinformation and cyber-attacks, with support at strategic and technical levels.

Sandu is expected to use the EPC summit to push for quicker EU access, which she claims is the only guarantee against becoming Russia’s next target, even though no such ambitions exist.

“We do believe that Russia will continue to be a big source of instability for the years to come and we need to protect ourselves,” said Sandu, on the sidelines of a Council of Europe summit in Iceland earlier in May. “We do believe that this [EU membership] is a realistic project for us and we are looking forward to see this happening as soon as possible.”

Although accession could take years to achieve, Ukraine, Moldova and Georgia won official candidate status to join the EU. For this reason, Sandu is taking advantage of heightened Russophobia in the West to project it in Moldova, which has a high level of Russophilia. However, this path of serving Western interests to oppose Russia is significantly affecting the economy.

In May, Moldovan Prime Minister Dorin Recean said that before the Ukraine war, his country was 100% dependent on Russia for its gas, but “Today Moldova can exist with absolutely no natural gas or electricity from Russia.”

Moldova is currently struggling to deal with the spillover effects of the war in Ukraine, which has significantly impacted households, the economy, and public finances. The war also oversees a considerable drop in Moldova’s GDP due to the disruptions in trade, remittances, and the energy crisis. Therefore, ordinary Moldovans suffer despite Recean’s boasting of cutting Russian gas.

As Valeriu Ostalep, former diplomat and ex-Deputy Minister of Foreign Affairs and European Integration for Moldova, said: “Sandu and her Party of Action and Solidarity (PAS) are involved completely in the Western geopolitics of the region; they just copy and paste the West’s rhetoric. It would not be a problem (to take) a position like that, but Sandu and PAS have lost the connection to the real problems of Moldova and the population. They are concentrated exclusively on the ‘fight against Russia’.”

“So we have total support by the West for Sandu and PAS and a complete disaster in the realities on the ground in Moldova, including the growing disdain of the population against Sandu and PAS,” he added.

By establishing Patriot, Sandu attempts to control the media narrative and criticism against her government by inadvertently targeting Russophile media. In fact, for Sandu’s supposed defence of liberalism and universalism, it is proven beyond doubt that these are not values that she defends but only buzzwords used to secure funding and support from the West.

Ahmed Adel is a Cairo-based geopolitics and political economy researcher.

May 30, 2023 Posted by | Civil Liberties, Economics, Full Spectrum Dominance, Russophobia | , , | Leave a comment

American Officials Erase US Role in Empowering Their New Number One Enemy China

By Conor Gallagher – naked capitalism – May 28, 2023 

As Washington increasingly inflates the China threat, a few pieces of sly propaganda to sell that conflict are coming more into focus. Recent speeches devoted to China by key figures in the Biden administration largely rested on falsehoods that conveniently erase decades of mistakes by the American elite and therefore shift all the blame onto China.

Both Treasury Secretary Janet Yellen and national security advisor Jake Sullivan recently engaged in this rewriting of history that claims the Chinese stole American jobs and similarly that Beijing nefariously took control of the “clean” energy industry and will now use its position to coerce other nations, potentially slowing climate action.

One can see why it’s an attractive talking point for DC officials as it helps sell the conflict to working class Americans and environmentalists, but it’s simply not true.

The blame for American industry (green or not) relocating to China was caused by the greed of American elites who reaped massive profits in the process. Now they claim taking on China will bring back jobs and help tackle climate change. Nevermind that much of the American industry now being relocated out of China is going to other “low-cost” countries or that the US war machine is the world’s largest greenhouse gas emitter.

How are Yellen and Sullivan portraying the US as an innocent bystander that never could have foreseen the loss of US manufacturing to China?

Here’s Yellen speaking on April 20 at the John Hopkins School of Advanced International Studies:

Over the past few decades, China has experienced an impressive economic rise. Between 1980 and 2010, China’s economy grew by an average of 10 percent per year. This led to a truly remarkable feat: the rise of hundreds of millions of people out of poverty. China’s rapid catch-up growth was fueled by its opening-up to global trade and pursuit of market reforms. … China has long used government support to help its firms gain market share at the expense of foreign competitors.

…The actions of China’s government have had dramatic implications for the location of global manufacturing activity. And they have harmed workers and firms in the U.S. and around the world…. China’s unfair economic practices have resulted in the over-concentration of the production of critical goods inside China.

And here’s Sullivan in his big speech about the new US international economic policy  speaking at the Brookings Institution last month:

The so-called “China shock” that hit pockets of our domestic manufacturing industry especially hard—with large and long-lasting impacts—wasn’t adequately anticipated and wasn’t adequately addressed as it unfolded.

First off, to the point of government support. China no doubt provides subsidies for firms largely in fields deemed strategic. The US also does so (see: Inflation Reduction Act, oil, agriculture, auto, etc.).

No doubt that China has bent and broken WTO rules, but that was working just fine for US officials until it wasn’t. Now that officials like Sullivan have woken up to the fact that offshoring everything to China was a disastrous long-term security plan, they say it’s Beijing’s fault for the “China shock.” But contrary to Sullivan’s claim such an outcome couldn’t have been foreseen, it was “adequately anticipated.” Here’s a piece from the New York Times back in 2000 titled “Unions March Against China Trade Deal”:

Thousands of steelworkers, truck drivers, auto workers and other union members rallied on Capitol Hill and swept through the halls of Congress today in a show of muscle intended to block a trade agreement with China.

Their message, conveyed by union leaders and rank-and-file members who came from as far away as Michigan and Nebraska, was that trade was working for American corporations but not for American workers.

… [the union members] said, they are only opposing a deal with a country that does not respect workers’ rights and would stop at nothing, in their view, to steal the jobs that are the backbone of the American middle class.

It was obvious at the time what was happening; the real story is well-known, but just to recap: it was American elites’ greed that caused the American working class to lose 3.7 million decent paying jobs from 2001-2018.

Matt Stoller and Lukas Kunce tell the story from a national security perspective in a 2019 piece at The American Conservative. Using old US telecom equipment company Lucent Technologies as a starting point. In 1996, AT&T spun off Bell Labs into Lucent, which began to buy up companies in an effort to keep its stock price high. Lucent also lended money to risky startups who would then buy Lucent equipment. Then came the dot-com bust, and the company, already dealing with accounting scandals, began massive layoffs. But that wasn’t the end of the story. Stoller and Kunce write:

In the early 2000s, the telecom equipment market began to recover from the recession. Lucent’s new strategy, as Mottl put it, was to seek “margin” by offshoring production to China, continuing layoffs of American workers and hiring abroad. At first, it was the simpler parts of the telecom equipment, the boxes and assembly, but soon contract manufacturers in China were making virtually all of it. American telecom capacity would never return.

Lucent didn’t recover its former position. Chinese entrants, subsidized heavily by the Chinese state and using Western technology, underpriced Western companies. American policymakers, unconcerned with industrial capacity, allowed Chinese companies to capture market share despite the predatory subsidies and stolen technology. In 2006, French telecom equipment maker Alcatel bought Lucent, signifying the end of American control of Bell Labs. Today, Huawei, with state backing, dominates the market.

The erosion of much of the American industrial and defense industrial base proceeded like Lucent. First, in the 1980s and 1990s, Wall Street financiers focused on short-term profits, market power, and executive pay-outs over core competencies like research and production, often rolling an industry up into a monopoly producer. Then, in the 2000s, they offshored production to the lowest cost producer. This finance-centric approach opened the door to the Chinese government’s ability to strategically pick off industrial capacity by subsidizing its producers. Hand over cash to Wall Street, and China could get the American crown jewels.

Can you blame Beijing? If the US wants to sell off their industry, wouldn’t it be crazy not to take it? The fact is the Chinese used the system Washington built against them, and now the likes of Sullivan and Yellen cry foul.

Long Yongtu, China’s chief negotiator for WTO accession has defended Beijing’s role in the country’s economy, saying “when we promised to adopt a market economy, we made it absolutely clear that it would be a socialist market economy.”

The loss of US manufacturing decimated the country’s research capacity. It means the US relies on components made in China for aircraft carriers and submarines. It means a trillion dollars in defense spending helps enrich China – the very country which is supposedly behind the increased defense spending in the first place.

Of course, Yellen and Sullivan admit no mistakes by the US ruling class. It was impossible to know this would happen, they say, despite warnings at the time that this very situation would arise.

Not surprisingly, when Politico did a 20-year-anniversary story on China’s accession to the WTO, most US lawmakers didn’t want to talk about their vote to normalize trade relations with China in 2000 (which paved the way to the WTO).

But four American “experts” who did the planning and negotiating of the normalization of trade ties with China have zero regrets. That’s hardly surprising as it seems the number one qualification to become an expert is the ability to never admit being wrong. It also probably didn’t hurt that all these experts were rewarded with better positions and often cashed in afterwards.

***

Yellen and Sullivan also play up how confronting China is part of their newfound focus on minerals critical for a green economy, but what they’re really doing is disguising another lack of foresight by American elites. Sullivan says critical minerals are “the backbone of the clean-energy future” and that “clean-energy supply chains are at risk of being weaponized in the same way as oil in the 1970s, or natural gas in Europe in 2022.”

Many of these minerals are controlled by China and are also critical for the US defense industry. Who could have foreseen? Here’s another tidbit from that 2000 New York Times article:

In an effort to counter the unions’ message, the administration released a Commerce Department study showing that every state would benefit from increased trade with China. And Gen. Colin L. Powell, the former chairman of the Joint Chiefs, endorsed the agreement, saying that among its other benefits it would be in the nation’s security interests.

How has that worked out? Well, it’s now unclear. As Army Technology points out:

The US Department of the Interior released a list of 35 minerals it deems essential to the economic and national security in 2018 (updated in 2022), amongst them many REEs. The problem for the US is that the local production of these materials is hugely limited.

The extent of reliance on imports varies from mineral to mineral. Beryllium is mainly used to create lightweight material used in fighter jets, lithium is essential for modern battery production and tin is used in electronics, including soldier semiconductors, a sector that is projected to reach a value of $17.5bn by 2030.

Whereas the US produces some of the minerals mentioned above, it entirely relies on China and other countries for many other supplies. Cerium is used in batteries and in most devices with a screen and magnets forged from neodymium and samarium are impervious to extreme temperatures that are used in fighter jet fin actuators, missile guidance, control systems, aircraft and tank motors, satellite communications and radar and sonar systems.

Here again, it was the US that moved rare earth and other mineral processing to China, that sold off mining operations to Chinese companies, and reaped the rewards for doing so. As Stoller and Kunce describe:

In the 1970s and 1980s, the Defense Department invested in the development of a technology to use what are known as rare-earth magnets. The investment was so successful that General Motors engineers, using Pentagon grants, succeeded in creating a rare earth magnet that is now essential for nearly every high-tech piece of military equipment in the U.S. inventory, from smart bombs and fighter jets to lasers and communications devices. The benefit of DARPA’s investment wasn’t restricted to the military. The magnets make cell phones and modern commercial electronics possible.

China recognized the value of these magnets early on. Chinese Premier Deng Xiaoping famously said in 1992 that “The Middle East has oil, China has rare earth,” to underscore the importance of a rare earth strategy he adopted for China. Part of that strategy was to take control of the industry by manipulating the motivations of Wall Street.

Two of Xiaoping’s sons-in-law approached investment banker Archibald Cox, Jr. in the mid-1990s to use his hedge fund as a front for their companies to buy the U.S. rare-earth magnet enterprise. They were successful, purchasing and then moving the factory, the Indiana jobs, the patents, and the expertise to China. This was not the only big move, as Cox later moved into a $12 million luxury New York residence. The result is remarkably similar to Huawei: the United States has entirely divested of a technology and market it created and dominated just 30 years ago. China has a near-complete monopoly on rare earth elements, and the U.S. military, according to U.S. government studies, is now 100 percent reliant upon China for the resources to produce its advanced weapon systems.

And now as the US presses the situation in Taiwan and enacts chip controls (and pressures other countries to do the same), how is China considering retaliating? From Nikkei Asia:

China is considering prohibiting exports of certain rare-earth magnet technology in a move that would counter the U.S.’s advantage in the high-tech arena.

Japan specializes in making high-performance magnets from rare earths while the U.S. produces products that use the magnets… Washington has since moved to forge a rare-earth supply chain on U.S. soil. China’s share of all rare earths produced globally dropped to roughly 70% last year from about 90% a decade earlier, according to the U.S. Geological Survey.

At the same time, China still holds a tight grip on processing rare earths. Most rare earths extracted in the U.S. go to China for refining before being shipped back to the U.S.

The CHIPS Act and the Inflation Reduction Act have added roughly 77,000 jobs so far, according to Jack Conness who does a neat job tracking the investments. That’s still a far cry from the 3.7 million jobs sent to China from 2001 to 2018, and it doesn’t look like many more will be returning despite the push to move production out of China as ties deteriorate. There’s the problem of automation, which FiveThirtyEight noted back in 2016:

 Because of rising wages in China, the need for shorter supply chains and other factors, a small but growing group of companies are shifting production back to the U.S. But the factories they build here are heavily automated, employing a small fraction of the workers they would have a generation ago.

And there’s always the pesky issue of American workers asking for decent wages. Both Yellen and Sullivan waxed on about “friendshoring” – relocating from China to friendly countries, which also happen to be low-wage. This is evidence of more short term thinking and prioritizing profits. Recall that China was initially thought of as friendly, and the selling point was that gifting it American industry would only make it friendlier.

Companies from China are already out in front of the friendshoring trend and are increasingly setting up shop in Mexico in order to be closer to their biggest market in the US.

Sullivan and Yellen don’t touch on that or just how difficult this reorganizing of supply chains will be. A 2020 Bank of America study found that it would cost American and European  firms $1 trillion over five years to shift all the export-related manufacturing that is not intended for Chinese consumption out of China.

Additionally, China remains the main player in East Asian production networks, which makes manufacturing electronics products, for example, without Chinese parts and components increasingly unrealistic. Meanwhile, the US is still the largest source of inward foreign direct investment flows into ASEAN. From The Diplomat :

These different roles played by the U.S. and China in the East Asian economic system are a result of the distinct fundamentals of their domestic economies. China has pursued a production – and investment – based growth model in the past few decades, while the United States is a post-industrial, heavily financialized economy, sustained by high consumption and its central position in the global financial order. These fundamentals will prove to be harder to shape than unilaterally altering trade policies.

On the one hand, this means that attempts at isolating China are limited by the economic realities. “Friend-shoring,” “nearshoring,” and newfound industrial policies in the United States (and Europe) could very well lead to the diversification of U.S. imports, lessen the perceived national security risks associated with import dependence, and provide economic benefits to ASEAN countries by shifting some manufacturing activity from China to Southeast Asia. However, these policies are unlikely to fundamentally challenge China’s central position in regional trade and production networks in the mid-term. As Apple’s struggles in diversifying the production of the iPhone show, China-centered production networks are not easy to replicate in other countries, as Chinese logistics and suppliers possess significant advantages.

With that in mind, it’s likely this ends up as another situation similar to the purchasing of Russian oil via India:

May 29, 2023 Posted by | Corruption, Economics, Timeless or most popular | , | Leave a comment

Government report claims pandemic as a precedent for ‘environmental’ policy

Lockdowns show behavioural restrictions are possible with the right messaging, a political disease we have yet to learn the extent of

eugyppius: a plague chronicle | May 22, 2023

The Advisory Council on the Environment is a body of experts convened by the Federal Republic of Germany to advise the state on matters of environmental policy. I’m grateful to @tomdabassman on Twitter for drawing attention to their recent and deeply creepy 200-page report on “The obligation of policymakers: Facilitating environmentally friendly behaviour.” It abounds in remarkable and revealing statements, and I’ve spent a good part of the day studying it for a longer post that I hope to write in the coming weeks.

For now, I want to draw your attention to the introduction, which is bad enough. Its authors depart from the premise that the state currently lacks “policy measures … targeting environmentally relevant behaviour,” and join others in affirming that it is the job of the state to nudge individual decisions in the right direction. Tellingly, both the pandemic and the sanctions-induced European energy crisis play a very large role in their thinking:

Although the key environmental crises, such as loss of biodiversity and climate change, are less directly visible and tangible than the energy crisis and the pandemic, environmental policymakers can learn from the sometimes painful but also important experiences of recent years: Behavioural changes in the population can be a part of the solution to crises such as these, and it is possible to adopt and implement policies aimed at changing behaviours.

For example, Germany introduced a series of measures in mid-2022 to alleviate the energy crisis … These measures targeted the behaviour of citizens. In addition to general calls to save energy, building owners were obliged to optimise their heating systems, employees had to accept lower room temperatures at work and it was forbidden to heat private swimming pools …. Earlier, Germany imposed far-reaching pandemic measures to contain the spread of Corona. For example, since 2020, the stated adopted and imposed various lockdowns and social contact limitations. Both highlight the contribution of behavioural changes, whether in energy consumption or social behaviour, to the project of combating a collective problem …

The aforementioned measures doubtless demanded a lot from people and in the specifics of the necessary extent of the restrictions, they proved controversial, as also in their unequal impact on different social groups. Nevertheless, the two crises show that political measures to carefully restrict the behaviour of citizens are possible if the threat is correspondingly great and the importance of the protected good – in these examples, health and energy – is recognised. The state has succeeded (even if not in every individual case) in devising measures such that they achieve their goal while maintaining proportionality. It is also clearly possible for these policies to be designed and communicated in such a way that the majority support them.

Emphasis mine. All of this speaks for itself, and I don’t have much to add, except to observe that the only way for restrictions to be “communicated” such that “the majority support them,” is by renewed forays into state media-fuelled mass panic and hysteria. Corona has taught our rulers that a great deal more is possible than they ever imagined, and they will spend the coming years exploring the limits.

May 28, 2023 Posted by | Deception, Economics, Malthusian Ideology, Phony Scarcity | , | Leave a comment

Phasing out petrol and diesel cars is just pie in the sky

By Roger J Arthur | TCW Defending Freedom | May 25, 2023

How many people, I wonder, have thought about the sheer quantity of raw material required to deliver Net Zero by the end of this century, let alone by 2050? How many are aware that Tesla alone may consume most of the associated raw materials in the world to make a few million electric vehicles (EVs)? Tesla are making around a million a year but more than 1,500million internal combustion engine (ICE) cars will need to be replaced in the great renewables utopia. Will there will be enough minerals and other raw materials to go round to allow ICE cars to be phased out by 2035 and for Net Nero to be delivered by 2050?

The key materials range from copper to rarer metals such as lithium, the refinement of which involves the release of CO2.

One specialist study reports that by 2050 Europe’s plans for producing clean energy technologies will require annually 4.5million tonnes of aluminium (an increase of 33 per cent on today’s use), 1.5million tonnes of copper (35 per cent), 800,000 tonnes of lithium (3,500 per cent), 400,000 tonnes of nickel (100 per cent), 300,000 tonnes of zinc (10 to 15 per cent), 200,000 tonnes of silicon (45 per cent), 60,000 tonnes of cobalt (330 per cent) and 3,000 tonnes of the rare earths metals neodymium, dysprosium and praseodymium (700-2,600 per cent). And currently the primary sources are in Russia and China.

Global copper production alone (unsurprisingly given the huge government subsidies behind renewable technology) has risen from around 16million tonnes in 2010 to more than 22million tonnes in 2022. Renewable energy plant requires on average eight to 12 times more copper than fossil-based power generation, and EVs three to four times more copper than ICE vehicles.

Perhaps the most challenging demand is for lithium, used to make batteries, including those in electric vehicles (EVs) which each take 63kg. So around 95million tonnes of lithium will be needed to make batteries for 1,500 million EVs globally. But only 130,000 tonnes came from mines in 2022, at which rate it would take more than 700 years to make enough batteries. If those EV batteries have to be replaced on average every ten years (assuming no increase in the number of EVs) the continuing demand will average around 9.5million tonnes pa, which is around 70 times the current rate of mining.

On that basis alone, the plan to replace ICE cars by 2035, 12 years hence, is pie in the sky.

The possible use of sodium-ion batteries is being explored but it is inconceivable that development will be complete or that sodium mines will be producing at the capacity needed by 2035.

Another alternative would be the use of hydrogen engines, which Toyota and others are pursuing, assuming that there will be enough H2 available. But the government plans to bring only 10,000MW of H2 production onstream during the 2030s, when the grid system alone will need several times that to keep the lights on when there is little sun or wind. A doubled maximum demand capacity will also be needed to carry the load of 300,000 new EV chargers in service stations on the strategic road network, plus 10million heat pumps.

If there are 30 petrol pumps per service station and it takes around ten times longer to charge an EV battery than to fill an ICE car, then 300 chargers (probably at 100kW each) would be needed per station. That would require a local grid substation capacity of 30MW, enough to supply a town of 30,000.

So the UK’s 2035 target for phasing out ICE cars looks unachievable because we will have neither the materials, the money nor the skilled resources needed to deliver Net Zero this century. Legislating to phase out ICE cars before affordable alternatives were available is not the way to run a country. Destruction of our ICE-making capacity will take us back to a pre-industrial era.

What prize might we miss out on by failing to eliminate the UK’s 0.00048 ppm contribution to current CO2 levels at a cost of over £5trillion, or over £200,000 per household? It would take 3,000 years for the UK to add 1.6ppm (the average annual rise over 60 years) to current CO2 levels. Bear in mind that the greenhouse gas impact of each ppm rise declines rapidly, and that the sun is the main driver of the 97 per cent of natural CO2 emissions.

Without a referendum, we are being subjected to taxation without representation. The government won’t risk giving us a choice and causing them to have to stand up against the UN, IEA and WEF. Sadly, none of the mainstream parties has the backbone to confront these issues.

All are happy, too, to accept the horrific exploitation and abuse of children in Congolese cobalt mines (and no doubt in other countries too), sacrificed to the ‘clean’ energy revolution.

May 28, 2023 Posted by | Economics, Malthusian Ideology, Phony Scarcity, Timeless or most popular | | Leave a comment

Iraq unveils $17bn infrastructure project linking West Asia to Europe

The Cradle | May 27, 2023

Iraqi Prime Minister Mohamed Shia al-Sudani on 27 May unveiled a $17 billion infrastructure project to link West Asia and Europe and make Iraq a regional transportation hub.

Once finished, the “Route of Development” project would run the length of the nation, reaching 1,200 kilometers from Turkiye’s northern border to the Persian Gulf in the south.

The project was announced by Sudani during a meeting with transport ministry representatives from Iran, Jordan, Kuwait, Oman, Qatar, Saudi Arabia, Syria, Turkiye, and the UAE.

“We see this project as a pillar of a sustainable non-oil economy, a link that serves Iraq’s neighbors and the region, and a contribution to economic integration efforts,” he said.

While more negotiations are needed, the Iraqi parliament’s transport committee stated that any country that desires “will be able to carry out part of the project,” adding that the project may be finished in “three to five years.”

“The Route of Development will boost interdependence between the countries of the region,” Turkiye’s ambassador to Baghdad, Ali Riza Guney, said, without specifying what role his country will play in the initiative.

Sudani has prioritized the repair of the country’s road network as well as the upgrade of its aging energy infrastructure.

On 25 May, Iraq’s Oil Minister Hayan Abdel-Ghani announced that Saudi Aramco is seeking to invest in Iraq’s Crutch gas field and expand its capacity to 400 million cubic feet.

Additionally, in February, the Iraqi government signed an agreement with the UAE firm Crescent Petroleum to develop two gas fields in northeastern Diyala governorate to supply local power plants.

The UAE’s private upstream oil and gas company disclosed that the Gilabat-Qumar and Khashim gas fields are expected to produce seven million cubic meters within an 18-month span.

In recent months, Baghdad has bolstered its efforts to increase its relations with Gulf states. On 19 February, Iraq and Saudi Arabia signed a Memorandum of Understanding (MoU) to share sensitive intelligence and deepen security cooperation, marking the first time the two nations have signed a security pact since 1983.

May 28, 2023 Posted by | Economics | , , | Leave a comment

The EU has no leadership, only NGOs and think tanks telling it what to do, says Hungarian minister

MAGYAR HÍRLAP | May 26, 2023

No one has the courage and aptitude to lead Europe today, meaning there is no political leadership in the European Union, especially in the European Commission, said Hungarian Justice Minister Judit Varga at a Budapest conference on Thursday.

“In the European Union today, it is non-governmental organizations (NGOs), foundations and think tanks that tell Europe how to run Europe, according to the will of their own leaders,” she said.

“Recently, for asymmetric reasons, a crisis of confidence has arisen between the EU leadership and the Hungarian government. This is because the Hungarian government, unlike the EU institutions, says what it thinks and does what it says,” she added.

Varga said Europe is stumbling around the stage of history as a clumsy sideshow, drifting from crisis to crisis, and since the migration crisis, it has been trying to make policy in a way that is completely divorced from the real needs of its citizens. She said the institutional system also failed during the Covid crisis and then shot itself in the foot with sanctions against Russia after the outbreak of the Russian-Ukrainian war.

She warned that immigration is a crisis that still affects Europe and continues to cost the Hungarian budget heavily.

“At the same time, by defending Europe, we have to constantly fight the judgments and proceedings of the European Court of Justice,” she said. “Waiting for yet another slap in the face instead of any good deed, that is the fate of Hungary.”

Varga noted that during the coronavirus crisis, the EU made deals regarding vaccines, and yet those text messages have never been produced, referring to the murky case involving EU Commission President Ursula von der Leyen.

“We make no secret of the fact that we want to hold the functioning of the institutions in the European Union accountable in terms of the rule of law. Let’s talk about whether the European Commission, the European Parliament, the European institutions are respecting the rules, whether the rule of law is working in the institutions,” said the minister.

On the issue of the Hungarian EU presidency, the European Parliament has no say in this, the minister said, stressing that more than 10 years ago, a unanimous European Council decision had established the order of the member states, which can only be changed by unanimity. The presidency is not only a right but also an obligation, and the opposition will not achieve anything by such an attempt, but it could do enormous damage.

According to the minister, the European Parliament wants to block Hungary’s EU presidency precisely because it fears that Hungary will take stock of the dysfunctional state of EU institutions.

May 26, 2023 Posted by | Civil Liberties, Corruption, Economics, Militarism, Science and Pseudo-Science | | Leave a comment

Major oil producer fears ‘apocalyptic’ impact of Russia sanctions

RT | May 26, 2023

The stability of oil supplies from Kazakhstan to the global market relies on transit through Russia, the country’s ambassador to the US, Yerzhan Ashikbayev, has stated. He added that any disruption to flows caused by sanctions could trigger a dire scenario.

“We proceed from the mutual interest of all parties, the interest in the stability of the global market, in the stability of supplies. This is vital both for the functioning of our [Kazakh] economy and for the entire global economy,” the envoy told RIA Novosti on Thursday on the sidelines of the Trans-Caspian Forum in Washington.

When asked whether he sees any risk that sanctions could make it difficult or impossible for Kazakhstan to transit oil, the diplomat described it as “some kind of apocalyptic scenario.”

Kazakhstan supplies oil to the global market via one of the world’s largest pipelines, the Caspian Pipeline Consortium (CPC).

A multinational project, the CPC involves Russia, Kazakhstan and a consortium of leading oil companies. The pipeline system mainly collects crude from the large oil fields of western Kazakhstan, but also from Russia. Its total capacity is over 1 million barrels of oil per day, which is 2.3% of global seaborne crude trade.

The CPC delivers around 1.2 million barrels of crude oil daily from Kazakhstan to Europe, and for subsequent shipment to the US. The pipeline’s operations were interrupted last year by storm damage to equipment at a Black Sea terminal, with the disruption sparking concerns of a global supply crisis.

According to Ashikbayev, the CPC remains an important project for Kazakhstan, accounting for 80% of the country’s crude oil exports.

Kazakhstan has strengthened its oil and gas ties with Russia despite the threat of secondary sanctions from the US and EU.

May 26, 2023 Posted by | Economics, Russophobia | , , | Leave a comment

US might use credit default to attack competitors

By Ahmed Adel | May 26, 2023

On May 22, US Treasury Secretary Janet Yellen warned that the country may be unable to service its debt by June 1 unless Congress raises its ceiling or suspends it. In turn, President Joe Biden ruled out the declaration of default. At the same time, despite all the predictions of doom and gloom, the US could benefit from a default, especially to wreak havoc on the international economy and competitors.

In the US, the amount of public debt is limited by law. Currently, it has reached $31.4 trillion. It is up to the US Congress to raise the national debt ceiling, but this year the issue became a major contention between Republicans and Democrats. The Republican party, with a majority in the House of Representatives, set a condition: it will vote to raise the ceiling if the Democratic government accepts significant cuts in budget spending.

Specifically, the Republicans propose cutting tax credits for the purchase of electric cars and the installation of solar panels, as well as reducing public spending on the repayment of educational loans. For Democrats, if they want to win the 2024 presidential election on their terms, these conditions are unacceptable.

No economic reasons for default prevent raising the public debt ceiling. Still, there are political reasons. The Republican majority in the US House of Representatives want to bring greater accountability to the Biden Administration, which has been making economic decisions without consulting Congress. The Republicans hope to catch the Biden Administration, the Federal Treasury, the State Department, and the Defense Department violating American law.

There is a low chance of default in Washington, but this does not rule it out entirely because a default can be used as a financial weapon capable of unleashing a global economic crisis which will also affect the US’s main competitors. It is much easier and more politically legitimate to default in the context of increasing global military and political tensions. For this reason, it cannot be entirely ruled out that Biden will pursue such a path.

Likewise, the US could use default to influence other countries. Despite the enormous debt figure of $31.4 trillion, the external debt is only $7 trillion. Consequently, some countries —which Washington will want to target economically and geopolitically— may be the victims of this default.

Even so, the main thing for the US is not to let doubts about the sustainability of its economy and debt loom. If a default occurs, it will be more difficult for the US to obtain loans.

For this reason, the probability of default is low because many tools exist to avoid it. Article 14 of the Constitution could be invoked, which states that the US debt cannot be called into question. Also, the Federal Reserve could easily double its balance sheet and buy all foreign debt.

On May 24, the US House of Representatives speaker, Kevin McCarthy, acknowledged that the Republicans and the White House maintain substantial discrepancies on the increase in the public debt limit requested by the Biden administration. The senior official expects to negotiate with the president daily until an agreement is reached.

Even if Republicans and Democrats overcome the impasse, it is recalled that in 2011, the last time the two parties had such fiscal odds, the most severe turmoil happened after a deal was struck, which saw shares fall the most steeply since the 2008 financial crisis. This was also amid worries about the impact of the spending cuts made to get the agreement and the implications of a downgrade in America’s bond rating by one credit rating agency.

Fitch Ratings on May 24 put the US on a negative watch – the first step toward a downgrade in the country’s rating by the major credit ratings firm. The credit agency cited “increased political partisanship” and weak governance compared to other countries that hold its top rating.

“The brinkmanship over the debt ceiling, failure of the US authorities to meaningfully tackle medium-term fiscal challenges that will lead to rising budget deficits and a growing debt burden signal downside risks to US creditworthiness,” the company said.

All this signals that the US is on the economic brink. What is most alarming, though, is that if the US was to default, it might not do so quietly and calmly but instead use an opportunity to bring down the world economy to hurt enemies and partners alike.

Ahmed Adel is a Cairo-based geopolitics and political economy researcher.

May 26, 2023 Posted by | Economics | | Leave a comment

Eurasian countries need own rating system – Putin

RT | May 25, 2023

The Eurasian Economic Union (EEU) member states should establish a rating agency to provide adequate assessment tools for the region’s growing economic activity, Russian President Vladimir Putin has said.

The proposal was made during a meeting of the Supreme Eurasian Economic Council in Moscow on Thursday.

Currently, the market for international credit ratings is dominated by three US-based agencies: Moody’s Investor Services, Standard and Poor’s (S&P), and Fitch Group. Countries outside the West have accused them of economic and political bias when it comes to assessing their markets.

“It would be useful to establish the Eurasian rating agency,” Putin stated, adding that principled approaches and strict criteria are needed. “It is important to guarantee that the work is absolutely objective. This is its whole value. If this is not the case, then there is no point in it,” the Russian leader stressed.

In addition, the president called for the development of industrial cooperation and an increase in the number of new joint ventures under the common trade mark “Made in the EEU.”

“It is important that such a new brand become recognizable and gain popularity among consumers in all our countries as soon as possible, and the Eurasian quality mark on goods manufactured in the territory of the five countries means that products meet the highest standards,” he stressed.

Additionally, the Russian leader called on participants at the EEU summit to develop common priorities for technological development, and create technological alliances with the involvement of third countries. Such associations could help set up new science-intensive and high-tech industries in the region, according to Putin.

The EEU, which is based on the Customs Union of Russia, Kazakhstan and Belarus, was established in 2015. It was later joined by Armenia and Kyrgyzstan. This year, Iran sealed a memorandum on free trade with the bloc. The union is designed to ensure the free movement of goods, services, capital, and workers between member nations.

May 25, 2023 Posted by | Economics | | Leave a comment

US military aid to Ukraine could be suspended due to debt ceiling – media

By Ahmed Adel | May 25, 2023

The Hill reported that US military funding to Ukraine could be suspended indefinitely due to proceedings in Washington over the public debt ceiling. Effectively, the public debt situation will force the US to reduce its financial support to Ukraine since it is no longer possible to expect as much support as before.

Congressman Andy Kim, a House Armed Services Committee (HASC) member, was quoted by The Hill as saying that lawmakers had conversations about what needs to be a part of the following package but expressed doubts about the timing of the legislation and highlighted that the ongoing fight over the debt ceiling was putting Ukraine aid at risk.

“It’s delaying our ability to focus on these issues,” Kim said. “That really shows that it has national security implications because we’re not able to have that kind of earnest conversation about Ukraine or the [National Defense Authorization Act] until they’re done with that.”

For his part, Congressman Bill Keating said aid to Ukraine would ultimately depend on its counteroffensive, something that will seemingly miss its long-anticipated spring deadline.

“It’s not a precise science to say what because it could be gains that were made that make more support less necessary,” Keating said. “Or there could be damage inflicted where there has to be more” assistance.

Ukrainian authorities have been promoting its upcoming counteroffensive, and NATO officials have indicated Ukraine has nearly all the promised weapons and equipment needed. Last year’s support was phenomenal, but sustaining such aid at this level is difficult. The public debt situation has affected and will continue affecting public opinion because out of all the spending, people will sacrifice those least sensitive to American society, and not such huge expenses as funding a war in Eastern Europe.

Congress is determined to cut spending, making funding difficult for Ukraine. The only thing that was announced by Congress Speaker Kevin McCarthy and confirmed by the White House was the spending cuts. Military spending is not discussed, but the funding for Ukraine now is many times less than last year. Ukraine can hardly expect the same funding it received as in the past.

The Treasury Department warned in a letter to Congress that as early as June 1, the US may not be able to fully meet its obligations if lawmakers do not authorise an increase in the borrowing limit by that time. Normally, Congress almost automatically raises the borrowing limit, but this time, the Republican opposition, who controls the House, has demanded that it reduce spending by several trillion dollars. The Republican bill passed the House of Representatives but has no chance of being approved in the Senate by Democrats, and even if the document reaches Biden, he will most likely veto the bill.

At the same time, the US finds it very difficult to accept the loss of Artemovsk (Bakhmut). With Ukrainian forces losing control of Artemovsk, the long-mooted counteroffensive becomes more politically urgent than ever for Kiev.

Ukrainian President Volodymyr Zelensky tried to keep his promise to launch a counterattack and for this reason, he continually requested the West for more weapons. As they lost control of Artemovsk, launching an offensive operation is the best way for Kiev to restart its plea for weapons from its NATO allies.

Zelensky is clearly in a difficult situation because the Ukrainian army is not ready for a counterattack and desperately needs ammunition. However, the Russian army almost immediately destroys any weapon concentration, which is starting to raise a series of questions about the success or failure of the Ukrainian counterattack.

This comes as many high-ranking military officials, including Polish Chief of the General Staff Rajmund Andrzejczak and US General Christopher G. Cavoli, acknowledged Russia’s ability to continue fighting without significant loss. Meanwhile, 40% to 60% of Ukrainian soldiers who completed their training in France in 2022 have no contact with their trainers and have likely died in battle or abandoned the battlefield.

Despite the propaganda pushed by the Kiev regime and Western media, Ukraine is clearly unable to launch its long-awaited spring offensive, and instead this is all a show to procure more weapons. The desperate situation for Ukraine coincides as Republicans and Democrats face off over the debt ceiling, proving problematic for Kiev’s quest to rearm.

House Republicans insist on spending cuts before they approve raising the nation’s debt ceiling past $31 trillion. Democrats claim Congress has already spent the money and must be allowed to repay America’s debtholders without leading to an economically disastrous default.

Negotiations are continuing to unfold to reach a debt limit deal, but the US default clock is ticking down despite it not being entirely clear when the US will officially run out of cash. When seen through this context, it is understandable why massive and reckless funding of the Ukrainian military is increasingly scrutinised.

Ahmed Adel is a Cairo-based geopolitics and political economy researcher.

May 25, 2023 Posted by | Economics, Militarism | , | Leave a comment

Iranian President: US Claims to Promote Democracy Are ‘Fake’

By Wyatt Reed – Sputnik – 24.05.2023

Claims by the US government that it pursues the promotion of democracy abroad are simply “fake,” Iranian President Ebrahim Raisi said Tuesday.

“The United States and [some] Western countries are not after democracy, but domination and plundering of other countries’ wealth,” Raisi said during an official visit to Indonesia, according to Iranian media.

“With the rise of emerging powers, the era of US domination has come to an end, said Iran’s chief executive,” media summarized.

Raisi pointed out that if Western powers are really after democracy and self-determination, they can start by guaranteeing Palestinians the right to choose their own destiny.
“Let the Yemeni and Afghan people decide for themselves,” he concluded, asking: “Why are you interfering in their affairs?”

The statements, delivered during a speech urging unity among Muslims at an Islamic center in Jakarta, came as Raisi seeks to bolster bilateral relations on his first official trip to Indonesia.

During a meeting with Indonesian House Speaker Puan Maharani, Raisi said the “expansion of ties between the Islamic Republic and Indonesia holds great promise for the progress of the two nations, the region, and the broader Muslim community,” state media reported.

“Despite the unjust threats and sanctions, the Islamic Republic of Iran has made significant progress and has achieved capabilities that have created good opportunities for the development of bilateral relations,” Raisi is quoted as saying.

On Tuesday, the two countries’ presidents and high-ranking officials met to sign off on 11 cooperation agreements.

The deals relate to “preferential trade, visa waivers, cultural exchanges, cooperation on supervising the production of pharmaceutical products, collaborations in scientific, technological, and innovative arenas, and bilateral cooperation in oil and gas sectors,” media indicated.

May 24, 2023 Posted by | Economics, Solidarity and Activism | , , | Leave a comment

Ukraine to hike tariffs on Russian oil transit to EU

RT | May 24, 2023

Ukraine will significantly raise transit fees for Russian oil running through the Druzhba pipeline on its territory to the EU on June 1, TASS reported on Tuesday, citing data from Russian oil and gas transport company Transneft.

It is expected that Kiev will increase tariffs for transporting crude to Hungary and Slovakia by €3.4 per ton to €17 ($18), bringing the total hike to 25%.

The planned increase in transit costs will be the second this year, after Kiev raised the tariff by 18.3% in January. Prior to that, the tariff was hiked twice last year.

Ukraine has cited the destruction of the country’s energy infrastructure which resulted in “a significant shortage of electricity, an increase in its costs, a shortage of fuel, and spare parts” as the main reason behind the decision.

Russian business daily Kommersant reported last month that Kiev was planning to hike transit fees for Moscow by over 50%. According to the outlet, Ukrainian pipeline operator UkrTransNafta had applied for a two-step increase in transit prices, by 25% from the current $14.6 per ton to $18.3 on June 1, and by an additional 23.5% to €21 ($22.6) on August 1.

Ukraine continues to collect payments for fuel flowing through pipelines in the country, while urging EU countries to stop purchasing Russian oil and gas.

Kiev is currently negotiating the hike directly with buyers in Slovakia, Hungary, and the Czech Republic, according to media reports.

Druzhba, one of the longest pipeline networks in the world, carries oil around 4,000km from Russia to refineries in the Czech Republic, Germany, Hungary, Poland, and Slovakia.

May 24, 2023 Posted by | Economics, Malthusian Ideology, Phony Scarcity | , , , , , | Leave a comment

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