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Iran’s sanction-free tobacco sector benefitting others: Expert

Press TV – November 3, 2019

Foreign companies who avoid investing in Iran citing threats of American sanctions continue to inject money into the country’s lucrative tobacco sector as it remains exempt from the bans, says an expert.

Behzad Khosravi Adinehvand told the IRIB News on Sunday that Japanese and South Korean companies had remained active in Iran’s tobacco sector while they keep refraining from helping Iran cope with sanctions that have affected its vital industries like pharmaceuticals and the automotives.

He said companies from Japan and South Korea have invested around $150 million in a year in cigarette production and tobacco processing in Iran under licenses issued by American and British companies .

“No one is there to ask officials from Japan and South Korea why you are able to invest in the cigarette sector … but avoid doing the same in the automotive sector and in the pharmaceuticals?” said Adinehvand.

The expert criticized the duplicity in the way the American sanctions are enforced, saying the lucrative tobacco industry in Iran has been categorized as part of the food sector so that foreigners can keep profiteering from a huge demand that exists for international brands in the country.

He said Winston cigarettes had an annual share of around $3 billion in the Iranian market, while Marlboro pockets nearly $1 billion, adding that other subsidiary brands and companies from Japan and South Korea sell another $3 billion worth of cigarettes and tobacco products inside Iran.

Adinehvand said demand for tobacco in Iran had soared five-fold over the post 10 years to reach 10,000 tons a year, a major incentive for foreign companies to increase investment in the country.

He said Iran’s production of cigarettes could only respond to less than a third of the domestic demand which is around 100 billion cigarettes a year, or five billion packs of 20.

The expert said the Iranian government had a meager share of the revenues generated in the $4.2-billion cigarette industry in the country although studies suggest that national health agencies spend more than $2.5 billion annually on treatment of diseases caused by smoking.

November 3, 2019 Posted by | Economics | , | Leave a comment

Malaysian PM: No country can impose its sanctions on other countries

Press TV – November 3, 2019

Malaysian Prime Minister Mahathir Mohamad says his country cannot carry out trade with Iran, one of its big trading partners, as a result of Washington’s unilateral sanctions against Tehran, noting that US bans on Iran contravene the United Nations’ provisions.

Mahathir made the remarks while speaking at a press conference on the sidelines of the 35th ASEAN Summit and Related Summits in Thailand on Sunday.

“There is no provision in the United Nations that a country, which is dissatisfied with another country, can impose sanctions on that country and other countries trading with that nation,” the Malaysian prime minister said, while criticizing the inhibitory impact of US unilateral sanctions against Iran on Kuala Lumpur’s trade with Tehran.

He also dismissed applying sanctions against countries as an act “against the law.”

“The sanctions don’t apply to one country alone,” he said, adding that Malaysia is now being sanctioned.

The Malaysian premier further criticized those who “talk so much” about the rule of law, rule-based trade and relations, but fail to adhere to their own principles without singling out any country.

Mahathir’s remarks came amid reports denoting that banks in Malaysia are closing the accounts of Iranian individuals and companies, in what is believed to be a measure linked to sanctions imposed by Washington against Tehran after the former left the landmark Iran nuclear deal, officially known as the Joint Comprehensive Plan of Action (JCPOA).

Since quitting the JCPOA, US President Donald Trump has been running what he refers to as a “maximum pressure” campaign, which seeks to pressure Iran into negotiating a new deal that addresses its ballistic missile program and regional influence.

The spokesman for Iran’s Foreign Ministry said on Thursday that the country’s embassy in Malaysia is doing its best to solve problems resulting from banking restrictions considered for Iranian nationals by some financial institutions in Malaysia.

Mousavi said, “Unfortunately, under the influence of the United States’ economic terrorism, some Malaysian banks have considered restrictions for opening accounts and providing services to Iranian nationals.”

Malaysia has maintained good diplomatic relations with Iran despite sanctions Washington imposed against Tehran. Iranian Foreign Minister Mohammad Javad Zarif made an official visit to Kuala Lumpur in August on the last leg of his three-nation Asian tour, which also took him to China and Japan.

November 3, 2019 Posted by | Economics | , , | Leave a comment

Was There Another Reason for Electricity Shutdowns in California?

By Richard Trzupek | The Epoch Times | November 1, 2019

According to the official, widely reported story, Pacific Gas & Electric (PG&E) shut down substantial portions of its electric transmission system in northern California as a precautionary measure.

Citing high wind speeds they described as “historic,” the utility claims that if they didn’t turn off the grid, wind-caused damage to their infrastructure could start more wildfires in the area.

Perhaps that’s true. Perhaps. This tale presumes that the folks who designed and maintain PG&E’s transmission system are unaware of or ignored the need to design it to withstand severe weather events, and that the Federal Energy Regulatory Commission (FERC) and North American Electric Reliability Corporation (NERC) allowed the utility to do so.

Ignorance and incompetence happens, to be sure, but there’s much about this story that doesn’t smell right—and it’s disappointing that most journalists and elected officials are apparently accepting it without question. […]

… if badly designed and poorly maintained infrastructure is not the reason PG&E cut power to millions of Californians, what might have prompted them to do so? Could it be that PG&E’s heavy reliance on renewable energy means they don’t have the power to send when an “historic” weather event occurs?

Wind Speed Limits

The two most popular forms of renewable energy come with operating limitations. With solar power the constraint is obvious: the availability of sunlight. One does not generate solar power at night and energy generation drops off with increasing degrees of cloud cover during the day.

The main operating constraint of wind power is, of course, wind speed. At the low end of the scale, you need about a 6 or 7 mph wind to get a turbine moving. This is called the “cut-in speed.” To generate maximum power, about a 30 mph wind is typically required. But, if the wind speed is too high, the wind turbine will shut down. This is called the “cut-out speed,” and it’s about 55 mph for most modern wind turbines. […]

Now consider how California’s power generation profile has changed. According to Energy Information Administration data, the state generated 74.3 percent of its electricity from traditional sources—fossil fuels and nuclear—in 2001. Hydroelectric, geothermal, and biomass-generated power accounted for most of the remaining 25.7 percent, with wind and solar providing only 1.98 percent of the total.

By 2018, the state’s renewable portfolio had jumped to 43.8 percent of total generation, with wind and solar now accounting for 17.9 percent of total generation. That’s a lot of power to depend on from inherently unreliable sources. Thus, it would not be at all surprising to learn that PG&E didn’t stop delivering power out of fear of starting fires, but because it knew it wouldn’t have power to deliver once high winds shut down all those wind turbines. – Read full article

November 3, 2019 Posted by | Deception, Economics | , | Leave a comment

Europe’s gas alliance with Russia is a match made in heaven

By M. K. BHADRAKUMAR | Indian Punchline | November 3, 2019

Amidst the excitement over the killing of the ISIS chief Abu Bakr Al-Baghdadi, a development of much impact on international security passed by when Denmark made the innocuous announcement on October 30 that it would permit the proposed Nord Stream 2 gas pipeline to pass through its exclusive economic zone.

Copenhagen modestly explained that it was “obliged to allow the construction of transit pipelines” under the UN Convention on the Law of the Sea.

The Nord Stream 2, which will connect Russia’s Leningrad Region  to Germany’s Baltic coast, bypassing the traditional route via Ukraine, aims to double the capacity of the already-built Nord Stream 1 to 110 billion cubic meters (bcm) per year that is more than a quarter of the European Union’s gas consumption.

On October 31, Gazprom, Russia’s energy Leviathan, had said 83 percent of the pipeline construction — more than 2100 km of the pipeline — was complete. The permit to construct in the Danish Exclusive Economic Zone south-east of Bornholm covers a 147-km-long route section.

Pipelay has been completed in Russian, Finnish and Swedish waters, and for the most part in German waters. The construction of both landfall facilities in Russia and Germany is nearing completion. Thus, the development last week signifies that Russia is certain to finish the project by the end of this year.

Despite the rising tensions in Russia’s relations with the United States, a massive energy project is all set to slither along the seabed between Russia and the European Union. The US wants to stifle the serpent in its infancy but Germany and Russia navigated it to the home stretch.

The project is expected to ensure safe and stable supplies of gas to Europe. The competitive Russian gas supplies will enable European customers to save anywhere around 8 billion euros on their gas bill in 2020.

More importantly, according to a study conducted by the University of Cologne EWI, “When Nord Stream 2 is available, Russia can supply more gas to the EU decreasing the need to import more expensive LNG. Hence, the import price for the remaining LNG volumes decreases, thereby reducing the overall EU-28 price level.”

Herein lies the rub. Europe has become a natural gas battleground for the US and Russia. Of course, apart from being a prized market, Europe is also a political battleground between the US and Russia.

Russia traditionally dominated the European market while the European Union appears to be keen to wean itself off Russian gas, given the geopolitical implications of over-reliance on Moscow for its energy security. On the other hand, the US is looking to step up its exports of liquefied natural gas (LNG) to Europe and faces a big resourceful competitor who cannot be dislodged from the market  — Russia.

Russia loomed large as the largest supplier of natural gas to the EU in 2018. According to the European Commission’s latest data on EU imports of energy products in October, eleven member states imported in 2018 more than 75 percent of their total national imports of natural gas from Russia.

Russia has multiple pipelines in operation, which gives it a big advantage in cutting down transportation costs for the European consumers, as compared to more expensive LNG imports from the US. Clearly, both geoeconomics and geopolitics are at play here.

The US’ transatlantic leadership is largely conditional on the climate of relations between Europe and Russia in general and between Germany and Russia in particular. Washington is acutely conscious that Nord Stream 2 can provide the underpinning for a stable, predictable relationship between Europe and Russia, which would go against the grain of the Trump administration’s projection of Russia as a revisionist power that the US is determined to counter.   

In sum, Washington apprehends that if Nord Stream 2 is completed, it will come as a severe blow to transatlantic relations, although on the face of it, the US has been arguing that the project runs counter to the Western sanctions imposed on Russia following its annexation of Crimea.

Actually, this argument is sheer sophistry, since Europe’s dependence on Russian energy supplies is a legacy inherited from the days of the Soviet Union. Moscow is a stakeholder in preserving its reputation as a stable, reliable supplier of energy to Europe at competitive prices. The crux of the matter is that the European consumer prefers the cheaper Russian gas to the expensive LNG exports from the US.

Meanwhile, the Ukraine crisis alerted Russia to the geopolitical reality that it could be vulnerable to US pressure politically, which in turn prompted its energy pivot to China. Gazprom aims to become China’s top gas exporter by 2035. When the Power of Siberia pipeline (under construction in Eastern Siberia to transport gas to Far East countries) becomes active later this year, it will deliver 38 billion cubic metres of natural gas annually to China, which will make China Russia’s second-largest gas customer after Germany.

However, paradoxically, Russia’s gas exports to Europe are only increasing in recent years. In 2018, Gazprom’s gas sales to Europe and its share of Europe’s gas market reached record highs. This trend can only continue as the Nord Stream 2 and Turk Stream pipelines, which will become active shortly this year, will deliver an additional 86.5 billion cubic meters annually to Europe.

Simply put, Europe’s addiction to Russian gas remains a fact of life and with the continent’s own gas production on the decline, Europe needs to import much bigger volumes of gas and lots of it is going to come from Russia.

The amazing part has been the dogged resistance by Germany to the US pressure tactic to abandon Nord Stream 2. The US even threatened to sanction German companies; US Congress passed resolutions calling for an end to construction of the pipeline. Germany’s manufacturing economy is dependent on imports for 98% of its oil and 92% of its gas supply, and cheap gas is the lifeblood of its export-based economy.

But then, there could be more to it politically than meets the eye. Can it be a coincidence that Germany is also resisting US pressure to shut out Chinese tech giant Huawei from its 5G networks? Like with Nord Stream 2, Washington advanced the same argument apropos Huawei — national security concerns. But Germany snubbed the calls from the US.

The Economist magazine wrote some months ago that the “The Atlantic Ocean is starting to look awfully wide. To Europeans the United States  appears ever more remote.” To be sure, the coming into fruition of Nord Stream 2 is yet another sign that the transatlantic relationship currently faces significant challenges.

The US-European policy divisions have emerged on a wide range of regional and global issues. Although US and European policies toward Russia remain broadly aligned, Nord Stream 2 turned out to be a key US-European friction point.

November 3, 2019 Posted by | Economics | , , , | Leave a comment

Denmark removes final hurdle for Russian gas pipeline to Europe

RT | October 30, 2019

Denmark has given the green light for the Russia-led Nord Stream 2 gas pipeline to pass through its waters. Copenhagen’s delay in granting permission has been the main hurdle to completing the project on time.

“The Danish Energy Agency has granted a permit to Nord Stream 2 AG to construct a section of the Nord Stream 2 natural gas pipelines on the Danish continental shelf southeast of Bornholm in the Baltic Sea,” the agency said in a press release.

It explained that the permit was granted in accordance with Denmark’s obligations under the UN Convention on the Law of the Sea.

“Denmark is obliged to allow the construction of transit pipelines with respect to resources and the environment and if necessary to assign the route where such pipelines should be laid,” it said.

The agency said it concluded that “the southeastern route on the continental shelf is preferable to the northwestern route” as it is the shortest one. It provides the “least risk and impact from an environmental and safety perspective and therefore is the preferable choice.”

The undersea pipeline, designed to deliver Russian natural gas to Germany and other European customers, is set to be finished by the end of the year. The offshore and land sections of the pipeline were connected on the German side last year and a receiving terminal is currently under construction there. Russia has finished laying nearly two thirds of the Nord Stream 2 natural gas pipeline along the bottom of the Baltic Sea.

The project has only needed approval from Danish authorities; other countries on the route of the pipeline – Russia, Finland, Sweden and Germany – have long-since approved it.

The pipeline’s construction has been criticized by the US administration which attempted to derail the project in order to boost sales of American liquefied natural gas (LNG) to Europe.

October 30, 2019 Posted by | Economics | , | Leave a comment

Washington FDA Says, ‘Let Them Eat Cotton’

Gossypol, “in most animals, provokes infertility”

By F. William Engdahl – New Eastern Outlook – 29.10.2019

US Government regulators have approved a genetically modified cotton variety as a “potential solution to human hunger.” The radical decision is to permit consumption by humans, in addition to animals, of seeds of a GMO cotton developed at Texas A&M University, with no independent long-term testing. It opens grave new concerns about the safety of our food chain. Soon, as a result, the world food chain may well be contaminated with the GMO cottonseeds whose dangers have been simply ignored by authorities.

The USA Food and Drug Administration (FDA) has just approved a new type of GMO cotton for unregulated release. The type, called TAM66274, has been genetically modified supposedly to make the seeds fit for human or animal feed by suppressing the presence of a dangerous toxin in the seed, while allegedly leaving the toxin only in the rest of the cotton plant.

With FDA approval the GMO cottons seeds will now be allowed as food for people or animals. The project has been led by Keerti Rathore, a plant biotechnology protégé of the late Norman Borlaug, at the Texas A&M AgriLife Research Center.

Rathore says the group will now seek approval in other countries starting with Mexico. He calculates that, “There are approximately 10.8 trillion grams of protein locked up in the annual global output of cottonseed. This is enough to meet the basic protein requirements of over 500 million people at a rate of 50 grams of protein per person per day.” He says the GMO cottonseeds can also be used to feed pigs, poultry or farmed fish or shrimp. His group sees it as a major new source of protein for consumption, as well as profit for cotton growers. It is not surprising that Cotton Inc., the US cotton lobby group is sponsoring the GMO project.

Cotton Inc. and Monsanto have a history of cooperation as well. Rathore says for every pound of cotton fiber, the plant produces about 1.6 pounds of seed. The annual global cottonseed production equals about 48.5 million tons. If that can now be turned into cottonseed oil or meal for human and animal consumption and sold, it adds a huge profit boost to cotton producers. The world’s largest purveyor of cotton seeds for planting cotton is Monsanto, now part of Bayer AG.

The kernels from the safe seed could be ground into a flour-like powder after oil extraction and used as a protein additive in food preparations or perhaps roasted and seasoned as a nutritious snack,” Rathore said.

On October 1 the FDA released its summary of findings for the Texas application which had been made in 2017. That gives the impression the Government researchers were making an intensive testing of the highly controversial issue of whether to permit human consumption of the GMO cotton seeds or not. Far from the case. As the FDA states in their findings of October, 2019, the FDA declaration was simply copied from the tests given them by the producer, Texas A&M and its biotech research group, funded by the US cotton industry group, Cotton Inc.

Highly toxic gossypol

The FDA approval, made with no apparent independent testing of the results given them by the group at the A&M AgriLife Research center, is notable given the fact that cottonseeds contain a highly toxic substance in the seeds known as gossypol. Because of gossypol, previously much of the weight of cotton plants was wasted or usable only for limited animal feed only after special treatment. The seeds were deemed unsuitable for human consumption.

The A&M GMO cotton was modified using what is called RNA interference technology, RNAi, to “silence” a gene that supposedly, again according to its developers, “greatly” reduces gossypol from the cottonseed. Rathore claims to have suppressed the gene of a cotton plant to produce cotton with gossypol in everything but its seeds: “We have eliminated this gossypol from the seed without affecting its levels in other parts of the plant,” said Rathore. “With the toxin removed from the cottonseed, it can potentially feed 500 to 600 million people per year.” Well, almost eliminated it, to be more accurate. They admit that about 3% gossypol remains in the seeds.

Now we are entitled to eat the “low” gossypol seeds which are said to be protein rich and supposedly safe. There are several alarming aspects to this FDA decision to release the GMO cotton variety for human and animal consumption.

Not Adequately Tested For Safety

First of all, as researcher Claire Robinson points out in an excellent analysis, the RNAi procedure for cotton is hardly proven to be safe. She notes scientific research that shows risks of GMO RNAi crops. One study found that RNAi molecules in food plants can survive digestion and enter the body of the human or animal eating it, and even affect the gene expression of the human or animal with unpredictable side effects. Robinson stresses that the FDA made no adequate thorough tests for safety of the GMO cotton, nor did Texas researchers. She notes, “No toxicity testing in animals has been done on the seeds that are intended for consumption. The application only refers to testing in mice of the NPTII antibiotic resistance gene product, though it does not mention how long the tests lasted.”

Not only are the range of tests submitted by the Rathore group deficient or inadequate, they admit that their GMO variety has not entirely eliminated the presence of toxic gossypol in the cottonseeds, hence they term it “low” gossypol cotton seed, with an estimated 3% gossypolAbsent are any tests long-term on mice or other animals of effects of 3% or low gossypol GMO cottonseeds.

Population Reduction?

Gossypol among other traits is a human contraceptive. A study published in the journal Contraception notes that gossypol, “in most animals, provokes infertility, and in man it causes spermatogenesis arrest at relatively low doses… Gossypol should be prescribed preferably to men… who would accept permanent infertility after a few years of use.” It seems to be irreversible for many.

Another study published in The Scientific World Journal notes that among other toxic effects, “… free gossypol may be responsible for… respiratory distress, impaired body weight gain, anorexia, weakness, apathy, and death after several days. However, the most common toxic effect is the impairment of male and female reproduction. Another important toxic effect of gossypol is its interference with immune function, reducing an animal’s resistance to infections…”

Now according to the FDA, we humans are animals too for purposes of consuming GMO cottonseeds. Is a presence of 3% gossypol in now “edible” GMO cottonseeds enough to cause stealth contraception in humans, or any of the other grave symptoms? We simply don’t know as none of the responsible US regulators, neither at USDA nor FDA, have apparently bothered to seriously test.

What has the FDA done to safeguard the health and safety of potential human or animal consumers of the GMO cotton? A careful reading of the FDA testing summary of October 1 shows the entirety of their evaluation, as noted, is lifted directly from the test results given them by Rathore’s group at Texas A&M. And Rathore omits details of the length of their testing, which can conceal negative effects that only show up after longer time tests. Other tests are superficial and inconclusive.

Speaking of his hopes for the application of his new GMO cotton type, Rathore declares, “My personal preference as we move forward would be to follow the ‘Golden Rice’ example in terms of its use for humanitarian purposes.” The only problem with that example is that the Philippines project financed by the Rockefeller Foundation in the 1990s to develop Golden Rice, supposedly high in Vitamin A, was a colossal failure that was later abandoned by its creators. It was simply used as a GMO PR stunt. It could well be that the inadequately tested GMO cottonseeds end up blended into our food like so many such ingredients with us being none the wiser. The precautionary principle seems to have been shredded by scientists at FDA.

October 29, 2019 Posted by | Economics, Science and Pseudo-Science | | Leave a comment

Airbnb complicit in ‘plunder of Palestinian refugee properties’ says new report

MEMO | October 29, 2019

Online accommodation and tourism giant Airbnb has been accused of “complicity in the plunder of Palestinian refugee properties”, in a new report published last week.

According to Who Profits, an independent research centre focused on exposing corporate involvement in the “ongoing Israeli occupation of Palestinian and Syrian lands”, their new update sheds light on a “largely overlooked” dimension of Airbnb’s “complicity”.

Taking the Old City of Yafa (Jaffa) as a case study, the new report “aims to highlight the ways in which Israel confiscated and controlled Palestinian properties, leading to their privatisation”.

“Israel has transformed properties into economic assets that benefit both the state and private actors, thus undermining Palestinians’ legally enshrined Right of Return,” stated the research centre.

“Serving as a platform for showcasing the homes that once belonged to Palestinians, Airbnb plays a role in strengthening the Israeli hold over Palestinian refugee properties,” Who Profits added.

During the Nakba of 1948, more than 750,000 Palestinians were expelled from their homes and lands – property that was subsequently appropriated by the Israeli state “through legal mechanisms that formalise their confiscation and turn them into economic assets”, Who Profits explained.

According to the centre, this “privatisation” of refugee properties has benefitted market actors and Jewish Israelis, “whilst further threatening the possibility of Palestinians reclaiming ownership of their properties in the future”.

In the case of Jaffa, what was once the largest Palestinian city was almost entirely ethnically cleansed during the Nakba (five per cent of its Palestinian residents remained post-1948). Today, the Old City is one of the most popular sites in Israel for tourists, where Airbnb lists more than 40 properties.

In its new report, Who Profit notes that “while the issue of listing settlement properties [in the occupied West Bank and East Jerusalem] has gained worldwide attention, the issue of listing refugee properties ‘abandoned’ in 1948 remains largely overlooked.”

“The act of plundering and privatizing refugee properties by the Israeli state, which started during the Nakba and continues to this day, has transformed the refugee properties in Yafa into commodities that can now be listed by hosts on platforms such as Airbnb,” the report concluded.

“In serving as a platform for these properties, as well as those in settlements in the West Bank and in East Jerusalem, Airbnb is profiting from the ongoing dispossession of Palestinians.”

READ ALSO:

Palestinians call for NGOs to reject donations from Airbnb

October 29, 2019 Posted by | Economics, Ethnic Cleansing, Racism, Zionism, War Crimes | , , , , | Leave a comment

Western courts target Gazprom for expropriations

By Padraig McGrath | October 29, 2019

On October 23rd the Amsterdam District Court issued an order for the seizure of 100% of the shares of the South Stream Transport B.V. company, which is contracted to build the offshore section of the Turk Stream Pipeline. This legal ruling follows a 2018 award by the Stockholm Arbitration Tribunal of $4.6 billion to Naftogaz, the (theoretically) state-owned oil and gas company of Ukraine, in a lawsuit which it had filed against Gazprom in 2014 in relation to alleged contractual violations regarding gas-transit through Ukraine. That $4.6 billion award was later negotiated down to $2.56 billion, but on October 23rd the Amsterdam District Court ordered the seizure of all South Stream Transport B.V. shares as a punitive measure for non-compliance with the Stockholm Arbitration Tribunal order.

Despite this development, Russian Energy Minister Aleksandr Novak said on October 27th that the construction of the Turk Stream Pipeline would be completed on schedule. The 1100-kilometre pipeline, 900 kilometres of which runs under the Black Sea to Turkey, is envisaged to begin delivering a combined total of 30 billion cubic metres of gas to Turkey and South-Eastern Europe per year, beginning in late 2019.

Of course, this is not the first time that Russia’s state-owned concerns have been targeted for plunder by a court or quasi-judicial body convened in the legal jurisdiction of a western country. In July 2014, the Permanent Court of Arbitration in The Hague issued an award of $50 billion to former shareholders of Yukos, the oil company previously controlled by the oligarch Mikhail Khodorkovsky. Interestingly, the Amsterdam District Court, the same judicial body which has issued this latest ruling, later quashed the 2014 ruling made by the Permanent Court of Arbitration on the grounds that the latter had no legal jurisdiction to issue such a ruling.

One thing which is perfectly clear in context is that these legal rulings are, quite blatantly, both politically and geo-politically motivated. Targetting Gazprom serves multiple geo-political functions. Firstly, the Turk Stream pipeline was devised in order to enable Russia to bypass the territory of a deeply problematic, crisis-ridden, hostile and contractually unreliable neighbour in the task of effecting gas-transit to its markets in Europe. Even before relations between Russia and Ukraine deteriorated following the February 2014 Ukrainian coup d’etat, the siphoning-off of Russian gas while in transit across Ukrainian territory had been a perpetual concern for many years.

However, this goal of rendering Ukraine a geo-political irrelevancy, and therefore nobody else’s problem, is precisely what western geo-strategists are invested in preventing. Ukraine has been transformed by western interests into the failed state that it is now precisely for the purpose of presenting developmental and economic challenges to Russia. Therefore, these same interests must use any counter-measures, including quasi-legal counter-measures, in order to keep Ukraine relevant. This explains the punitive court-order to freeze the shares of South Stream Transport B.V.

Another driver of this western judicial hostility, also a manifestation of current geo-political conditions, pertains to Gazprom specifically. To analyze this, we should look at the role which highly profitable state-owned concerns, Gazprom the most notable among them, play within the Russian economy and in Russian society more broadly.

In spite of maintaining quite a business-friendly tax-environment (Russia has a 13% flat income-tax rate), the Russian government nonetheless manages to maintain (and indeed, to significantly upgrade) the social system. Significant federal investments have already been made in infrastructure and in the modernization of the public healthcare sector, for example. In February, the government announced 12 major development-projects as part of the “Great Society” initiative ranging from agriculture, ecology, infrastructure, the digital economy, and the further technological modernization of public healthcare.

In a country with a 13% flat income-tax rate, revenues from state-owned companies like Gazprom make this kind of state-building and society-strengthening possible. The western alliance (and its judiciaries) understand perfectly well that financial attacks against Gazprom amount in practical terms to attacks on the Russian state, and to counter-measures to the Russian state’s efforts to build the kinds of social systems which are necessary to its long-term self-defence.

Taken to its logical conclusion, from the liberal democratic perspective, the rationalization for this further degree of geo-political weaponization of “international law” would be that, as liberal democracy is believed by the western alliance to be the only political system which has any moral or political legitimacy, it therefore follows that only liberal democratic legal systems have any legal jurisdiction, and that their jurisdiction should be seen as universally extensive.

“Liberal universalism” refers to a sense of moral universality, but also (consequently) to a sense of universality of legal jurisdiction.

This mindset attempts to justify the weaponization of judiciaries, and of judicial bodies established by international law, against all and any states which don’t sign on with the liberal universalist consensus.

Of course, Russia is not the only state which is targeted by this geo-political weaponization of judiciaries. We might recall the 2012 order made by a New York court to freeze $6.5 billion in Iranian government assets in relation to a lawsuit filed by family-members of people killed in the 9/11 attacks. The lawsuit had claimed (quite spuriously and bizarrely) that Iran had aided and abetted the 9/11 attackers, despite the obvious point that Al-Qaeda’s ideology is fanatically anti-Shi’ite. One point which is interesting, considering that state-sponsored piracy has quite recently re-appeared on the high seas (Gibraltar), is that judicial structures established by “international law” are now also being quite explicitly used for the purpose of enabling what we might term “judicial piracy.”

What next? Will the British government start re-issuing “letters of marque” to sea-faring privateers?

However, as with so many geo-political stratagems deployed by the governments of contemporary liberal democracies, the resulting erosion of the judiciary’s independence from the political sphere completely undermines the normative and legal basis of liberal democracy itself.

October 29, 2019 Posted by | Economics | , | Leave a comment

Russia, China & India to set up alternative to SWIFT payment system to connect 3 billion people

RT | October 28, 2019

Members of the BRICS trade bloc Russia, India, and China have decided to connect their financial messaging systems to bypass the SWIFT international money transfer network.

Russia’s financial messaging system SPFS will be linked with the Chinese cross-border interbank payment system CIPS. While India does not have a domestic financial messaging system yet, it plans to combine the Central Bank of Russia’s platform with a domestic service that is in development.

The new system is expected to work as a “gateway” model when messages on payments are transcoded in accordance with a certain financial system.

According to Izvestia, the parties involved will work on a single platform, without experiencing any difficulties with transactions.

Russia began development of SPFS in 2014 amid Washington’s threats to disconnect the country from SWIFT. The first transaction on the SPFS network involving a non-bank enterprise was made in December 2017.

“We have an opportunity to connect both foreign banks and foreign legal entities to the SPFS. Today, about 400 users are participating in the system. Agreements have already been concluded with eight foreign banks and 34 legal entities,” Alla Bakina, the director of the Bank of Russia’s national payment system, was cited as saying by Vesti.

Bakina explained that traffic through the system has been growing and currently accounts for around 15 percent of all internal traffic, up from 10-11 percent last year.

The EAEU (Eurasian Economic Union) countries are currently working with the Bank of Russia on technical options for connecting to the SPFS. Iran, which has officially joined the Russia-led free-trade zone (EAEU) this month also seeks to develop a joint alternative to SWIFT. Last year, SWIFT cut off some Iranian banks from its messaging system.

SWIFT is based in Belgium, but its board includes executives from American banks with US federal law allowing the administration to act against banks and regulators across the globe.

Instead of SWIFT, a system that facilitates cross-border payments between 11,000 financial institutions in more than 200 countries worldwide, Moscow and Tehran will use their own domestically developed financial messaging systems to conduct trade.

October 28, 2019 Posted by | Economics | , , , | Leave a comment

Another regional election defeat for Merkel, as German leader’s party beaten by right-wing AfD

RT | October 27, 2019

German Chancellor Angela Merkel’s conservative Christian Democrats (CDU) lost yet another regional election, coming behind both left-wing Linke and right-wing Alternative for Germany (AfD) in the eastern state of Thuringia.

It’s not the first time in 2019 that Germany’s ruling party has taken a hammering in local polls. Merkel’s CDU and its coalition partner, the left-wing Social Democrats (SPD) already saw their formerly safe lead in Saxony and Brandenburg eroded last month by the rise of the AfD.

The AfD, which surged from nothing into third place in 2017’s federal elections, took 23.8 percent of the vote in Thuringia, according to exit polls released Sunday. Merkel’s CDU took 22.5 percent. The left-wing Linke won the state, taking 29.7 percent of the vote.

At the back of the pack, the SPD took 8.5 percent, while the Greens took 5.4.

For the AfD, pipping the CDU into second place is a major coup, considering the party only managed to win 10 percent in the last election in 2014. Back then, the CDU was the overall winner, with 33.5 percent, though Linke, the SPD, and the Greens would band together to form a coalition government.

For the CDU and SPD, Sunday’s results are the worst since reunification three decades ago.

Thuringia is a small state with a population of 2.1 million that used to be part of the Eastern Bloc.

Though the CDU and SPD remain in power in the west of the country, the ruling centrists have seen their support eviscerated in the east, pointing to a culture clash of sorts between both sides of the old Cold War-era border. The east remains relatively disadvantaged compared to the west, and the AfD has courted the region’s electorate by opposing the closure of coal mines and calling for urban regeneration.

Linke too has positioned itself as a champion of the working class, promising increased social spending, a raised minimum wage, and tax increases on the wealthy.

Opposition to Merkel’s ‘open door’ immigration policies saw the AfD initially surge in popularity, after the chancellor welcomed more than a million migrants to Germany in 2015. Since then, the party has found support in the east, where public opinion against immigration is strongest.

And, while Germany’s green party enjoyed strong support in this summer’s European elections, its share of the vote remained stagnant in Thuringia, suggesting that the environmentalism currently in vogue in the west finds few fans in poorer parts of the country.

“Thuringians have voted for the Wende 2.0,” Bjoern Hoecke, the AfD’s leader in the state, said on Sunday. “This is a clear sign that a large part of Thuringia says: This can’t go on. We need renewal – this should be taken seriously.”

“Wende” is a German word meaning “turnaround,” and was used to describe the collapse of East Germany three deacdes ago. AfD leaders have repeatedly used the phrase on the campaign trail in eastern states, suggesting that the demise of Merkel’s centrism is every bit the revolution the fall of communism was.

With the center gutted and the AfD and Linke taking the most votes, there is little in common between both parties, save for a more friendly attitude to relations with Russia than Merkel’s. Both are currently enjoying more support than would have been imaginable in 2014, though every single mainstream German party has ruled out working with the AfD.

October 27, 2019 Posted by | Economics | , , | Leave a comment

Lenin ‘Judas’ Moreno – Ecuador’s Story of Betrayal and Resistance

By Joaquin Flores | Strategic Culture Foundation | October 27, 2019

On October 3rd, countless tens of thousands of Ecuadorian citizens began a general strike and occupation of public spaces, throughout the country but targeting the capital of Quito. President Lenin Moreno has made himself one of the most hated men in the history of the country in the course of his rule, and was forced to flee as a consequence, and re-establish the capital in Guayaquil. In addition, facing a larger and wider revolution all together, Moreno was forced to rescind Decree 883 – the new law which appears to have been the straw that broke the camel’s back in Ecuador.

But this is far from over, and Moreno’s continued existence as head of government threatens to see the expansion of this newly awakened movement. Internationally too – for it is Moreno who also betrayed Julian Assange, after Raphael Correa offered him protection.

Media are accurately reporting the obvious, but in limited context: Moreno enacted Decree 883, which brought an end to the popular fuel subsidies. As the story goes, this was part of an austerity agreement made with the International Monetary Fund (IMF) in return for a loan. Decree 883 threatens the country’s most vulnerable and historically marginalized cross-sections of Ecuadorian society, indigenous communities in particular. These indigenous communities, along with labor and citizen’s group, were at the forefront of these protests and the general strike, leading and organizing them. Moreno accuses his popular predecessor Correa for planning and executing the protests, with assistance from Cuba and Venezuela. The ‘random Soros guy’ from Brazil, Juan Guaido, has echoed Moreno’s accusation.

The Looming Econocide which Decree 883 Threatened

Beyond this, however, is the real story of Decree 883 and the recent history of Ecuador, and the real betrayal represented by Mr. Moreno – a visceral hatred he has earned for himself, which extends far beyond Decree 883.

Mr. Moreno baffled the public when he announced that the subsidies policy introduced in the 70’s, which if accounting in a very narrow and segregated way, appear to ‘cost’ the government some $1.3bn annually, were no longer affordable. But what macroeconomists and the public both understood, and what was particularly outrageous, was this: these subsidies, based on Ecuador’s socialized gas industry, in fact made possible all sorts of economic activity; risk taking and opportunity making, and consumption in other sectors of the economy – not possible without such a subsidy.

And so the ripple effect of Decree 883 would result in pessimism and a bearish national economy, all around. The cognitive and theoretical deficiency of believing that one can shore up nominal debts that exist under certain conditions of subsidy, by eliminating an economy enhancer like an energy subsidy, without this in turn deleteriously effecting overall GDP indices, to in turn qualify for a loan which would in all obvious reality create further balance of payment and debt problems, is itself either negligent, criminal, or both.

The real consequence would be that it would place the Ecuadorian economy further in debt, which means in further reliance on the IMF, which means further loans will be needed, which means further austerity, and ultimately privatization of the public weal. Upon such a cycle, creating permanent servitude and insolvency, the final aim on the part of the IMF cannot be simply a vicious debt cycle, (as this is ultimately unpayable) but the total private and foreign ownership of Ecuador, with some sort of mass impoverishment, even genocide of its indigenous people, as an obvious – if not wanted – consequence. At this point it becomes perhaps secondary to note that none of these ‘IMF loans’ will be used to develop the country’s physical economy – the only real signifier of wealth building for a whole society, if viewed scientifically and rationally as an organic unit with mutually interrelated symbiotic components.

There are few words to describe such aims as Decree 883 without delving into deep, profound, philosophical and theological questions about the nature of the forces of good and evil in the world. Questions which force us to ask what universal principles give meaning to our lives as human beings, and what really and fundamentally motivates those with such a blatant misanthropic agenda.

But at any rate, it is more than obvious how this move by Moreno, in the name of Decree 883, had led to the near toppling of the Ecuadorian government – leading to Moreno declaring a state of emergency.

A success so far for the people has been the apparent repeal of Decree 883, but why Moreno is so very much hated deserves our attention, as this is only the beginning. During his tenure, Moreno has gained himself the nickname among the opposition ‘Judas’: a name necessary as it distinguishes that he is ‘no Lenin’.

What Moreno has done has resulted in the largest popular uprising the country has seen in many years. After years of working to reverse the progress and stability brought by the noble and just government of Raphael Correa, Moreno brought about a condition of instability and ignobility. Within months of assuming office, he disavowed Correa who had brought him where he had arrived, and began to work under the orders of Washington to undo Correa’s social and legislative reforms that had been aimed at deepening the strength of Ecuador’s civil society, labor, and justice. Under Correa, poverty would see a 30% decline.

Despite this obvious reality, this obvious truth, Moreno doubles-down on his contempt for reason and rationality, by accusing the protestors of being agents of Correa, even of Maduro (!). This affront to the wisdom of the people of Ecuador is comparable to blaming the blood for the wound, or for blaming the wound for the accident which causes these.

The gas itself is largely owned by and for the people, through EP Petroecuador

The latest affront to dignity and fairness, in the form of yet another IMF sell-out from Moreno, came in the form of the elimination of gas subsidies for people most in need. And one cannot offer any real logic or reason for ending these subsidies, for the gas itself is largely owned by and for the people, through EP Petroecuador, the state oil firm.

But this deep-seated scorn is not simply related to contempt for his policies, but much more profoundly for his betrayal. Because we might expect such austerity from a centrist or right-wing candidate, given the history of politics in Latin America – there is something honest in this; they deliver what they campaign on. But given that Correa had essentially groomed Moreno, and Moreno in turn endorsed the policies of Correa – we encounter the crux of the matter, and how Moreno turned from Lenin to Judas.

To wit, it was Raphael Correa’s broad plan to rescue Ecuador from the predatory claws of the IMF, by fomenting a public campaign, a brilliant simulacrum strategy of sorts, borrowed from Venezuela, that an entire program of socialist revolution was underway, such that it had the effect of lowering the value of Ecuador’s bonds, owned by foreign interests. This made it so that Ecuador was able to succeed in buying back some 91% of these bonds, and made possible Ecuador’s thumbing the IMF and not taking on new debt. This was done by intelligently weaponizing Ecuador’s apparent weakness in not having its own real national currency, as this was dollarized by corrupt national leaders in 2000, using the excuse of the damage caused by Hurricane ‘El Niño’, to eliminate Ecuador’s monetary sovereignty. It had been widely believed that without a national, sovereign currency, that Ecuador could have no sovereign monetary policy – Correa proved this wrong by turning expectations and dynamics on their respective heads. While this dictum is true in the long-term, Correa used the dollarized nature of Ecuador’s currency values in a gambit to buy-back Ecuador’s bonds.

When Correa was elected president of Ecuador, it had come as the result of years of struggle by the popular forces of resistance, against all odds, and overcoming a particularly unstable and disastrous period were Ecuador had seen come and go some ten presidents in the period of just eleven years.

Correa would go on to serve for a decade, and continued to build popular support, and this had signaled the realization of an even broader dream of social and economic justice in Ecuador, but also a visionary long-term plan to integrate the Latin American economy into a single civilization-wide economic bloc.

The history of modern Ecuador is one of tragedy, hope, and never lacking in contradictions. During the time of Correa he was faced with the strongest opposition from the most intransigent and short-term thinking, narrowest in scope and vision, of the country’s billionaire class.

And it only so happened to be that this same class, who had been responsible for the years of instability and rampant poverty, were also those closest to Washington DC and New York City – placing the country at the hands of the Washington Consensus – the IMF, City Bank, JP Morgan Chase, and the rest of the “usual suspects”.

Rejecting this, in February 2007 that Correa’s economy minister Ricardo Patiño stated: “I have no intention […] of accepting what some governments in the past have accepted: that [the IMF] tell us what to do on economic policy.” “That seems unacceptable to us,” Patiño concluded.

The U.S and the IMF hated this, and hated Correa for this. Correa confused many –at first seeming to be a center-leaning social-democrat reformist. His biography and optics were misleading: young and well groomed, with waxed hair and Spanish features, he appeared very much like the kind of candidate historically installed by Ecuador’s wealthy comprador class. His credentials in governance had come about through being Ecuador’s finance minister under the prior neo-liberal government of Alfredo Palacio. And yet Correa was a man of the people and once in office quickly became allies with the Castros of Cuba and also Chavez, and then Maduro of Venezuela.

Correa understood he would be termed-out eventually, under Ecuador’s constitutional provisions, and had worked early on to groom a successor.

Again, the biography and optics were misleading: this successor was Lenin Moreno, the son of a communist teacher; Moreno inspired empathy with his soulful eyes, reminiscent of Iran’s Ahmadinejad, and being wheelchair-bound, he inspired sympathy.

The people had expected that a man who inspired such sympathy and empathy, would himself be capable of tremendous sympathy and empathy for the people in turn.

And yet the people were wrong. Instead, what lurked in the heart of Lenin Moreno was so dark, so depraved, so shallow and so selfish, that it exploded the left’s understanding of character.

It would turn out that Nietzsche’s dictum that weakness lays at the root of evil, and strength at the root of good, was true. If the apparent meekness of Moreno would allow him to inherit the world of Ecuador, then it was his cruelty and hatred, his resentment born of weakness, for those healthy and happy people, even if poor, that would threaten to destroy it.

The government of Moreno has been a betrayal so monumental and significant to the living history of Ecuador, that it has indeed earned him the name ‘Judas Moreno’, an allusion both to Judas Iscariot who betrayed Jesus Christ to the wishes of the Sanhedrin, and also to Leon ‘Judas’ Trotsky, who is believed by mainline communists internationally to have conspired to betray the Russian Revolution through his alleged conspiracy with the forces of Fascism in Europe.

And this leads us to the real heart of our investigation, for the apparent revolution that Judas Moreno has betrayed was the popular democratic, electoral ‘revolution’ of Correa. And this is why Moreno is so hated, and lacks any mandate. And this is also why his power decreases by the day, as his legitimacy in question after his first months in office, and his actions against the people – the repression, arrests, and persecutions which have heightened in the last ten days of protests against his regime, are only but the culmination of several years of the same.

Now there are dead, martyrs in this struggle, murdered by Moreno’s security forces.

Decree 883 may have been repealed, but coming about on the precipice of a broader revolution, the coming weeks and months only promise more conflicts, surprises – and we should expect yet another betrayal from Judas Moreno, and another explosion in response.

October 27, 2019 Posted by | Deception, Economics, Malthusian Ideology, Phony Scarcity | , | Leave a comment

Expensive Climate Policies Sparked the Chile Riots, Just Like the Yellow Vest Protests in France

By James Taylor | The Epoch Times | October 25, 2019

Climate activists and the United Nations are suffering a major black eye this week as protests and riots resulting from high energy prices have erupted in Santiago, Chile.

Chile, which is hosting a major U.N. climate conference in December, earned praise from climate activists for recently imposing a carbon dioxide tax on conventional energy sources and switching the Santiago Metro system to renewable power. Now, the people of Chile are rising up and firing a shot across the bow of other nations considering similar energy taxes and expensive renewable energy programs.

On Friday, protestors took to the streets throughout Santiago in response to Metro fare hikes. The protests soon spread to other cities and led to rioting and at least five reported deaths. The Chilean government and the legacy media blamed the fare hikes on rising oil prices. But that is not true.

Oil prices are not rising. Global oil prices are currently 25 percent lower than they were a year ago and 37 percent lower than they were five years ago.

In Chile, gasoline prices reflect the lower oil prices. Chilean gasoline prices were $1.12 U.S. per liter in August 2019 (the last month for which data are available), compared to $1.28 a year ago. Five years ago, Chilean gasoline sold at $1.50 U.S.

Santiago Metro fares are rising, despite falling oil and gasoline prices, because government officials in 2018 traded out most of the Metro’s energy sources from conventional power to wind and solar power. The Chilean government also hit the portion of conventional power that remains with new carbon dioxide taxes.

As a result, Chileans are now burdened by higher Metro fares reflecting unnecessary energy price hikes. As Chileans protest in the streets, climate activists and their media allies want people to believe oil is to blame rather than government climate programs that raise energy prices and impoverish people.

Unlike speculative climate change harms that never seem to really happen, carbon dioxide taxes and renewable energy mandates immediately and measurably raise living costs and reduce living standards. … continue reading

October 26, 2019 Posted by | Deception, Economics, Malthusian Ideology, Phony Scarcity | , | Leave a comment