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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

The Neoliberal Ghost of Pinochet Is Finally Being Exorcised From Chile

By Paul Antonopoulos | October 25, 2019

More than 46 years of initially military imposed neoliberalism has finally exploded into widespread frustration, protest and violence. This neoliberalism culminated in 2017 with twelve businessmen, among them Chilean President Sebatián Piñera, monopolizing at least 17% of the national GDP, demonstrating the huge gap in wealth equity. There is little doubt why the latest protests have exploded violently, with 18 dead so far – Piñera had declared war on his own people to protect his lucrative monopoly racket.

It is without surprise he had declared war. The aggressive neoliberalism that has dominated Chile since the 1973 Chilean coup d’état when socialist President Salvador Allende was killed and eventually replaced by neoliberal Augusto Pinochet, with the backing and blessing of U.S. President Richard Nixon, Henry Kissinger, the CIA and the so-called “Chicago Boys” neoliberal economic team.

Although the so-called communist threat was defeated in Chile, it was not until 1990 for the kinder face of neoliberalism to return to the country, with the first democratic election taking place since the coup. The return to democracy had not meant any differences to the economic system.

The appearance of GDP growth in the South American country created the mythology of the Chilean miracle, ‘thanks’ to the Chicago Boys, the group of young Chilean economists who studied at the University of Chicago under the adviser to U.S. President Ronald Reagan and British Prime Minister Margaret Thatcher, professor Milton Friedman. They were the so-called economic liberators and advised Pinochet on applying complete free-market policies, essentially to privatize state-owned industries and companies, and to open the economy.

The pernicious globalist model was applied and deemed a miracle because of significant GDP growth. However, this is only to the benefit of shareholders and private companies and does not reflect on the average Chilean experience. According to the Organization for Economic Cooperation and Development (OECD), the Gini coefficient value, a method to measure wealth distribution, stood at a record 0.50 in 2017, one of the highest inequality coefficients in the world.

This is because the incomes of the richest 10 percent of Chile are 26 times higher than the incomes of the poorest 10 percent of the population. This is partly also due because the of an unfair taxation system that creates a massive tax burden on the poor as Chile’s government earns less from income taxes than any other country in the 35-member OECD. Despite praises of the supposed fantastic economic performance, almost a third of Chilean workers are employed in part-time jobs, with one in two Chileans having low literacy skills, according to the OECD.

And now as Chile literally burns and 18 people are dead, we cannot forget that former president Michelle Bachelet grotesquely dedicated lessons on “human rights” against Venezuelan President Nicolás Maduro. Although Piñera apologized, it was not for his declaration of war against the people, but rather for the decades of unresolved problems, followed by an announcement for a new social and economic program.

A reversal of the crippling neoliberal economic system? Highly doubtful and probably more a Band-Aid option.

Neoliberal propagandist Enrique Krauze Kleinbort – accused of the coup attempt to overthrow Mexican President López Obrador – proclaimed that Chile was ‘the role model’ for Latin American economic growth. If the inequality is considered a ‘role model,’ it shows that the oligarchs of Latin America have not realized a growing trend of violent opposition to neoliberalism, as the recent case in Ecuador demonstrates.

The very fact that Piñera attempted to increase transportation and energy costs in Chile demonstrates his lack of knowledge on international outrage to neoliberalism. The French Gilets Jaunes (Yellow Vests) in France began their actions 12 months ago, which also spread across Europe, when neoliberal President Emmanuel Macron attempted to increase gasoline taxes. In 2018, Brazilian truck drivers blocked roads in a demand for a decrease in diesel prices. Mexico in 2017 saw a 20% rise in fuel prices that exploded into riots.

However, the attempted increase in transportation and energy costs was only the spark that lit the fire. As Piñera, the male part of a monopoly over the Chilean economy, was forced to admit this is an explosion after decades worth of frustration, neglect and abuse. Candida Cecilia Morel, the wife of the billionaire Piñera, sent a WhatsApp message that was leaked in the media, in which she comments on the violence and the protests shaking her country – and it certainly does show the disconnect that the elite of Chile have with the common Chilean. The message said that “we are absolutely overwhelmed, it is like a foreign invasion, alien,” and that “we will have to decrease our privileges and share with others.” Her suggestion to decrease “privileges and shares” is a stark reminder of Charles Dickens 1800’s Britain.

With such elitist comments and referring to Chileans as aliens, there is little wonder that there has been little calm despite Piñera’s half-done apology and promises of more neoliberalism with a softer punch.  Although circles close to the Chilean Presidency affirm that the disturbances and destabilization are orchestrated from abroad, it is unlikely to be true. We can of course expect that Venezuela will be the scape goat by some Chilean oligarchs, just as the oligarchs in Ecuador and Colombia do, but there remains little evidence that this is the case.

Rather, as Piñera has had to attest, decades of neoliberalism is the cause of this. However, perhaps inspired by events in Ecuador, it appears that the Chilean people are finally exorcising the neoliberal ghost of Pinochet from its country. It appears that the violence will not end unless the Chilean president makes drastic changes to the Chilean economy. Whether he does this or not remains to be seen.

Paul Antonopoulos is a Research Fellow at the Center for Syncretic Studies.

October 25, 2019 Posted by | Economics | , | Leave a comment

US Renews Chevron License as European Refiner Cuts Venezuela Ties over Sanctions

By Lucas Koerner | Venezuelanalysis | October 23, 2019

The US Treasury Department has allowed Chevron to continue its operations in Venezuela for a further 90 days.

One of the few remaining US petroleum companies still in Venezuela, Chevron currently produces around 200,000 barrels per day (bpd) in several joint ventures with Venezuelan state oil company PDVSA. The California-based energy giant had its Treasury-issued sanctions waiver extended on Monday.

The Trump administration imposed an oil embargo in January, barring dealings with Venezuela’s oil sector, including US imports of Veneuzelan crude, which then stood at 586,000 bpd. At the time, Chevron was issued a six-month license to wind down its Venezuela operations, which was renewed in a last-minute late July decision after months of lobbying. Other beneficiaries of the renewal are Haliburton, Schlumberger, GE’s Baker Hughes, and Weatherford International.

The license does not cover sales of diluents to PDVSA, which were outlawed by the Treasury Department in June. Venezuela relies on imports of diluents to blend its heavy crude into exportable grades, as well as produce gasoline and diesel for internal consumption.

Venezuela’s oil production has plummeted over the past two years since the US began imposing economic sanctions. According to OPEC secondary sources, output fell to just 644,000 bpd in September, down from an average of 1.911 and 1.354 million bpd in 2017 and 2018, respectively.

Caracas has scrambled to find new crude buyers, reportedly selling shipments to Russian state energy company Rosneft which then reroutes them to other customers. PDVSA has also moved to convert its heavy petroleum upgraders into blending facilities so as to produce lighter Merey grade crude favored by Asian markets.

In August, Washington upgraded its sanctions regime to a general embargo, prohibiting all US dealings with the Venezuelan state and its associated entities as well as authorizing secondary sanctions against third party actors.

The Trump administration has been reluctant to renew Venezuela operating licences, insisting on the need to deprive the Maduro government of export revenues in the hope of removing it from power. Venezuela depends on oil sales for over ninety percent of its hard currency earnings, which it uses for vital imports of food, medicine, and all classes of inputs.

Despite opting to greenlight Chevron’s operations for three additional months, the Treasury Department moved last week to modify the license of a European refining company prohibiting new purchases of Venezuelan crude.

Jointly owned by PDVSA and Finland’s Neste Oil, Nynas AB operates speciality refineries in Sweden, Germany, and the UK geared mainly towards asphalt production.

Under the terms of the new license, Nynas is authorized to sell Venezuelan oil or petroleum products already in inventory but is barred from making new purchases.

Nynas is one of only two remaining buyers of PDVSA’s lighter, Western-sourced crudes following Washington’s ratcheting up of sanctions this year, which have led most cash-paying customers to cut ties with the Venezuelan state oil firm.

Reuters reports that the move could lead Petrozamora, a Venezuelan-Russian joint venture in the western border state of Zulia, to cut production by 50,000 bpd in order to avoid overflowing oil stocks.

With additional reporting by Ricardo Vaz from Caracas.

October 24, 2019 Posted by | Economics, Malthusian Ideology, Phony Scarcity | , , | Leave a comment

A House of 12: Debate Four Shows Dems Have No Platform – Biden Stands No Chance

By Joaquin Flores | Strategic Culture Foundation | October 22, 2019

The DNC continues to promote Biden despite his not resonating with likely voters, undecideds, and swing-staters. Gabbard shone bright, but appears to have earned her place back by putting in work for Biden. The DNC must focus on fully socialized healthcare, as Trump’s foreign policy record is strong in the eyes of anti-war voters actually paying attention. But the DNC can’t, and so Trump will likely win.

It was Round Four of the Democratic debates on Tuesday, with 12 candidates squaring off in Westerville, Ohio.

Staged in the critical swing-state of Ohio, the small town of Westerville hosted Round Four of the Democratic Party primary race debates on October 15th. Democrats obviously are pinning hopes on being able to win a few of the swing states they lost to Trump.

The Democratic Party continues its strategy of maintaining a very high number of contenders in the race. In short, the party realizes that the front runner it wants to win – Biden – really lacks the grass roots support, big ideas, and mobilizing capacity that interesting candidates like Sanders, Yang, and Gabbard in fact have. So they keep these more interesting candidates in the race, so that potential voters are more invested in the process for longer. The idea is to try to transfer some of that Yang and Gabbard excitement and support, onto Biden. If that seems like a Herculean task and a strategy not likely to succeed, you would be right. But bear in mind that this is the same Clinton controlled DNC that came to believe that Hillary would win by a landslide.

Gabbard was no doubt the real-winner of this debate – because a victory in 2019 is whatever meme, soundbite, or viral clip you can produce from this sort of event. And Gabbard’s slicing and dicing of Warren was absolutely the highlight of the debate.

By European standards, the Democratic Party is a center-right liberal-austerity party, engaged in an abusive tactic of working against the mandate handed to them by their own more social-democratic constituency. Their programmatic aim is to reduce and tame the real demands of most of their voters, and present ‘pragmatic’ candidates with a ‘chance to win’. In reality, they force their own voters to bargain against themselves. The much weakened and diluted program that the pragmatic candidates take with them into office, is then in turn ‘bargained down’ in their negotiations with law-makers on the other side of the aisle. The result are candidates that no one really likes, going in and beginning negotiations with the position that one ought to arrive at in the end, and absolutely not begin with.

Healthcare

For example, on healthcare – as we saw again in debate number four – Biden promotes only nominal tweaks to Obamacare, which is a non-starter for the activist base of the party which knows that other developed countries consider healthcare both a right and a necessary foundation that makes all other profitable and industrious parts of socio-economic life possible and significantly more robust.

This base is required to generate excitement and launch candidates to wider audiences.

This is an entirely foolish position for many reasons, for nearly 60% of the general public according to recent Gallup polling, also believe that government must provide healthcare. Assuming that every voting Democrat supports a government mandate on healthcare, then nearly 60% means that about 20% of those are Trump voters, making this something of a non-partisan issue.

Interestingly, that polling data also shows that Obamacare ruined the public’s perception of government involvement in healthcare, and support for some kind of intervention dropped from all time pre-Obama high in 2006 of 69% in 2007, all the way down to some 46% in the time period that the travesty of Obamacare was passed into law in 2010. It would take another nine years for the support number to rise to where it is now, still 12 points below its 2007 high.

No Alternative to Trump’s Dovishness

The candidates in the Ohio debate took turns posturing tough on the need to beat Trump, but the DNC seems bent on backing any candidate who seems the least likely to. The reason that Trump will win if this continues – and win ‘big league’ – is that this is not only another ‘change’ election in the eyes of progressive and independent voters, but in fact a larger change paradigm.

Trump’s biggest weakness is his generally conservative position on social programs and healthcare, which is generally unpopular, even though his nominal trade wars with Europe and China were aimed at raising the position of the American worker.

The reality is that even during the administration of Bush 43, the Republican base was growing and voters were trending Republican. The victory of Obama was made possible around three factors: the unpopularity of the wars, which he promised to end, but did not; the massive new-voter registration campaign that was done through the back-door of ostensible labor organizing campaigns by SEIU in swing-states like Colorado; the massive energy at the base created around the prospect of a paradigm-shifting president, African-American no less, that would open the door to larger social-democratic movement – this also was spelled out in new-voter registration and turn-out.

Clinton attempted to use what the Obama energy had built, despite the 2016 election also having been a change election. But this need for ‘change without hope’ was absolutely at odds with the ‘hope + change’ campaign of 2007. Clinton was in the position of not being particularly inspiring to anyone, and needing to use the Obama energy and Obama machine to win an election which in all reality was a mandate against many of Obama’s actual policies and failings.

Without new voter turn-out, and without a genuinely populist campaign from the Democrats, Trump doesn’t have a serious contender to deal with.

Democrats have no real alternative program to offer to Trump, appealing instead to Trump Derangement Syndrome and the ‘Orange-Man-Bad’ mantra. But none of their supposedly front-runner candidates have anything of substance to counterpoise to Trump, with the exception of Warren on healthcare. But Warren will never escape the tag of being Pocahontas, and like Gabbard and Sanders, her anti-war positions may resonate against some of Trump’s rhetoric – if cherry-picked – but voters really concerned about war as a priority are more or less informed that it is Trump, and none other, that has been the first U.S president since perhaps Ford that has not begun a fresh U.S military campaign abroad.

We live in times where the entire U.S Empire is being dismantled, and being dismantled much to the chagrin of vested interests who may know better, but nevertheless insist on policies that stretch out the inevitable in the most short-term profitable way, to the extreme detriment of long-term thinking along strategic and national security/sovereignty lines. These ‘neoconservatives/neoliberals/whatevers’ have been using the vehicle of the Oval Office to see their plans through since the end of the Cold War. The policies of Clinton and Obama were practically indistinguishable from their Republican ‘opponents’ from the same era. All Trump will have to do is continue to run against the past Obama administration on foreign policy, deep state and all, since they’ve been so adamant about controlling and owning the process up to and until now. The numerous times he’s been threatened with impeachment was explicitly aimed at steering him back on track on aggressiveness on Syria, despite that their strategy failed nonetheless.

That means that what differentiates progressives from Trump is not the actual foreign policy positions as such – in this sense Trump feels and acts more like a dove than a hawk – but rather domestic policy on healthcare. Given the real state of inequality, costs, employment, and so forth, healthcare costs are simply out of hand, and too many Americans who have fallen ill have had to mortgage their homes, sell whatever earthly possessions they may have, wind up homeless, or simply die in hospice care.

This is the reality that Americans are facing, and it is therefore strategically ‘insane’, also being unconscionable as an aside, that Democrats continue to push characters like Biden and Harris who oppose single payer along ‘tax increase’ lines. Warren, as was on display in the debate, continues to support some kind of Medicaid for all, and rightly points out that any tax increases will be easily off-set by the end of insurance premiums. Everyone apparently knows this but Biden and Harris, so insurance companies and HMO’s continue to bankroll significant parts of the Biden and Harris campaigns.

We live in a ‘punishment’ paradigm, not a ‘lesser of two evils’ paradigm. Democrats on the fence are not ‘centrists’ as Biden backers insist, but rather ‘to the left’ of Democrats on foreign policy and healthcare, and will simply vote against any Democrat to punish them the way they themselves have been punished by Democrats for hitherto voting for said Democrats until now. Democrats in swing states will vote against Democrats, not vote, or vote for Trump for the very teachable moment that such a move creates.

For that reason, we continue to see 12 candidates all on one stage. Most of what is being written and read this week on the subject has a relatively transparent method and goal: to give a blow by blow of the debate and focus on the ‘horse-race’ angle of it, instead of how the candidates’ positions reflect things that actually matter to voters, and to promote Biden, Warren, and Harris as ‘front-runners’ simply by promoting this idea and repeating it until it becomes a matter of fact as a result. This, despite the fact that these three are among the least likeable candidates, and are indeed very uninspiring people with very little of substance to say.

It has to be said, and must be said again, that it is Sanders, Gabbard, and Yang that motivate and inspire the base. The DNC has no intention in allowing any of them to get the nomination, but need them in the running.

Nobodies like Buttigieg, whose political experience constitutes being a homosexual mayor of a town of three-hundred thousand folks, are in this race for no apparent reason. Except as some sort of latent insult to gay voters, implying that gay voters are interested in a gay candidate for their gayness alone, despite not having any political experience in state-wide, let alone national politics. That, and attempting to keep some sort of Democratic Party interest in Indiana, a state that Obama won in 2008, lost in 2012, and that Trump won in 2016. No wonder Buttigieg, in his ‘tremendous’ political experience at 37 years old and mayor of some place no one has heard of even in Indiana, wants to abolish the electoral college. Why is Buttigieg still in this race? This campaign has to be ‘fake news’ as nobody on the ground is excited about this lad.

Gabbard was the highlight, and she’s still in it

In our simulated and scripted reality, Gabbard ‘made a come-back’ after being excluded from the third debate, and qualified for the fourth. She has shown real utility on numerous occasions for being one of the three most interesting candidates on the one hand, but showing a particular acumen for landing punches on Biden’s opponents – punches that Biden himself can’t seem to land. She’s showing herself to be a very important part of this race, because our Kshatriya warrior princess keeps grass-roots Democrats engaged. The most interesting part of this debate was Gabbard taking aim directly at Warren’s inexperience militarily, that she has no experience to serve as Commander-in-Chief. Moderators cut her off right as she landed this punch, a punch which everyone heard nonetheless, and received an audible ovation from the audience. That clip will no doubt be viral for the coming weeks.

October 22, 2019 Posted by | Economics, Militarism | , , | Leave a comment

Western central bankers: they’re God, they trust – a 10-part series on the QE economy

By Ramin Mazaheri | The Saker Blog | October 21, 2019

It’s not that the West’s central bankers are infallible – the similarity is that they cannot be held accountable. After all – who can call God to account for His decisions?

Like God, when things succeed it is They (central bankers) who deserve all the credit – when things fail it’s because we failed to properly follow Their policies.

And like God, they don’t need regulation – it is They who give the regulations, which must be accepted on faith alone and no matter how poor the results.

Central bankers are held partially accountable by only one sector – the markets of money. If markets go down based on any of their statements the bankers immediately reverse themselves, regardless of the situation. Countless times Bernake, Yellen, Trichet, Draghi and others have made statements purposely as clear as mud and then backtracked at the first lower lip quaver from the rich. Despite this exception, neoliberalism has proven to be the worship of bankers, as they rule and not markets – central bankers, of course, subvert and control the markets in many ways.

This idolatry is not new: for two centuries “capitalism with Western characteristics” has truly been “banker rule”. The most impressive victory of neoliberalism – their ability to extend their unholy domain despite provoking the Great Recession – proves this: Central bankers in the G7 nations and the Eurozone have all been given the power to set fiscal policy, to decide social policy priorities and to render domestic elections irrelevant. Western nations are no longer democracies (and they were all, every one, merely the types of democracies which pointedly refused to evolve after 1917) but bankocracies.

The Great Recession has exposed modern capitalism to be not just banker worship but also banker governance.

This is not some wild-eyed lefty nonsense – they are deciding public policy. If we called them a “Politburo” instead of a “central bank” the West would rally up a posse of Nazis and send them to invade.

This multipart series will – as many of my previous such series have also done – use an exceptionally important political book as a jumping off point, which also allows me to humbly impart my point of view gleaned from my work as a daily hack journalist in the heart of the Eurozone. This point of view is rarely heard, yet has virtues which academics, think-tankers, specialists and authors cannot possibly contain – even we hack journalists must have some virtues, after all?

The book is 2018’s Collusion: How Central Bankers Rigged the World by Nomi Prins, a former Wall Street executive who saw the light and is now informing on the crimes of Western imperialism-capitalism.

Quite simply, the book’s primary virtue is chronological: Prins gives a historical account of central banker doings in key areas – Mexico, China, Brazil, Japan and Europe – ever since US banker crimes set off the Great Recession in 2007. Prins gives us all the key happenings in these regions (only China is the one which is undoubtedly not capitalist-imperialist), and that is not something you can find all in one place elsewhere.

And because central bankers run the West, it is like reading the daily itinerary of a dictator – “this is how things were decided”.

What Prins does a good job in reminding us is that this has all been done to keep US banks solvent. Every policy of the US Fed is about defending this goal, and not at all about the health of the global economy; the idea that the US would be militarily aggressive and culturally overbearing yet financially benevolent is preposterous and unsupported by evidence.

But the book is essentially conventional journalism – it is a recounting of historical decisions, facts and consequences. The only radical, non-Western change Prins really suggests is to move away from the dollar. The world “class” is used less than a handful of times. Her mentions of the negative effect of central bankers’ decisions on the average person are clearly sincere but both sparing and brief. Few people get into Wall Street out of their love for poetry, after all. The book is a former Wall Streeter watching other Wall Streeters who have taken a brief detour into public service (except in China) – it is banker-centric. And this is quite useful in the 21st century.

Prins clearly and correctly views bankers as the problem, but her solution is essentially limited to hoping that China’s central bankers will re-balance the status quo, and that their stewardship will allow developing countries to coordinate cooperatively instead of exploitatively. She does not believe that the entire system needs re-ordering upon new moral and political foundations (or even upon the very different moral foundations upon which Red China rests, and which account for their different policies).

But merely changing Western-centrism to Sino-centrism, with its obvious shift away from the US greenback (and even combined with her correct approval of cryptocurrency) cannot be enough. China is not insisting that Western capitalist-imperialist nations follow Beijing, but that they reform themselves – Iran does this too, but where Beijing uses a whisper Iran uses a megaphone amplified by a megaphone. Prins needed far more moral condemnation and to propose far more actual changes to the prevailing Western system, but – as I wrote – this is essentially a book of typical Western capitalist “objective” journalism, where moralising is supposed to be left entirely to the reader.

This series is advocacy journalism. What I have done is to take Prins’ useful chronological, globally-oriented journalism on modern economic history and analyse it from a perspective very different from her own: a pro-socialist and anti-imperialist one.

It’s a great book, but lacks a modern political viewpoint

Prins gets the main point across, though, and it’s there in her title: G7/G20 central bankers have colluded since 2008 to (greenback) paper over the causes of the Great Recession.

Her book makes it undoubtedly clear how monetary policy has been coordinated to inflate and appease the 1%-dominated “markets” at different points around the world at different times. She doesn’t use these correct political terms, but she shows that 21st century Western financial policies are fundamentally neo-imperialist: the world has slaved for the benefit of the former unipolar imperium since 2008 – even though said imperium provoked the financial crisis in 2008 – because of collusion orchestrated by the imperium to inflict policies on the global economy which were mainly to save their biggest, busted banks.

There you have it: three major points upon which the past 11 years of Western economic history have been resting. This also explains why the West’s financial foundation is even shakier than it was in 2008.

You don’t need a PhD in economics to immediately grasp the correctness of these allegations: Nobody in their right mind would buy the securities of the top US banks… except for unaccountable central bankers. Central banks West-wide routinely bought $200 billion of such assets per month. Taxpayers were not enriched by buying bad investments, of course, but the busted banks in the US, Germany and France were.

The collusion Prins refers to in her title is the way the Fed used their influence to force other G20 banks to adopt the same policies. These policies are: massive money printing via QE, ZIRP (Zero interest rate policies) to persuade banks to take the money, and relaxing collateral standards in order to make sure banks got that money no matter how unsound everybody knew they were.

The problem comes down to a simple difference between capitalist and socialist views of finance: governments with policies dominated by the former give taxpayer money to private banks with no rules or accountability, whereas governments with policies dominated by the latter give this money with massive oversight, regulations and directives in order to ensure that it is used as efficiently as humanly possible. The irony for socialist-inspired nations is that they are the ones who are painted as corrupt!

Governments influenced by the former can rely on compliant, privately-owned Mainstream Media to repeatedly insist that these loans are for the benefit of all even though there is no such evidence for such a claim, nor any logical reason to expect such an outcome. Governments influenced by the latter really don’t care what the Western MSM says – their own people don’t need to be propagandized in favor of capitalist lies, and thus they mainly try to keep a low profile as regards international media.

(Cuba spends almost nothing on their media; Iran only recently started PressTV (and this service is more notable for its “different” viewpoint – “Voice of the voiceless” is the official slogan – rather than its scope and size); Xinhua seems to spend most of its time on soft news and certainly doesn’t trumpet its own beliefs. Indeed, much can be said about that difference between Iran and China: the former is nearly screaming up to Heaven what it is thinking and doing, whereas inscrutability in China is not just a cliché but their government policy, which aims to avoid friction. But I digress….)

The ultimate problem with Prins is that – like all “I’m a capitalist but not THIS capitalism” – she is ultimately a historical/economic nihilist:

Prins is like so many fine commentators on the Anglophone fringe: accumulating, exposing and railing against the crimes of capitalism, and garnering many clicks and views, but remaining fundamentally supportive of the capitalist system. They don’t believe in the only philosophical and economic alternative humans have designed to capitalism – socialism – nor do such analysts ever thread the camel through needle and become the one capitalist who finally proposes a capitalist system which is not based on exploitation, competition, aggression, etc.

“There are ostensibly two main types of central bankers: the ones with more legacy power, and the ones with less but rising power, as is the case in China.”

Totally false: very real alternatives exist, and denying that – which Prins essentially does – only keeps people stuck in the political nihilism of TINA (There Is No Alternative).

The very real, very working alternative: the ‘terrorist’ central bankers of Iran & China

As I alluded to, China’s central bank is predicated on totally different foundations. And then you have Iran’s central bank: Iran’s central bank chief, Valiollah Saif, was declared a “terrorist” last month by Washington. Neither of these countries with socialist-inspired revolutions have banking leaders who are quotidian, interchangeable “central bankers minus legacy power”, as Prins describes.

Why was Iran’s Central Bank declared a “global terrorist”?

More flagrantly oppositional than Iran’s foreign policy are the tenets which guide Iran’s National Bank: it is totally state-owned, whereas the Fed is a consortium of private banks and set up like private corporations (something rarely understood). Iran’s National Bank is not “independent” from the government in the slightest. Iran’s central bank cannot meddle in – much less dictate – domestic policy, because that is why Iran has elections. Iran’s Central Bank, due to its fundamental independence, anti-capitalist and revolutionary nature proves that not all central bankers are the same.

Importantly, the independence of many Western central banks came after the Iranian Islamic Revolution of 1979: The Bank of Japan was made independent in 1998, the same year the ECB opened its doors to let greed rush in. Of course, their independence ensures that they follow policies which are for private concerns and not public ones.

Contrarily, China and Iran have central banks owned, literally, by the People. Former ECB chief Jean-Claude Trichet often talked about how the ECB was a “bank of the people”, but it was classic continental hypocrisy – the Maastricht treaty, in the neoliberal & anti-socialist model in which the EU and Eurozone were created, explicitly made the ECB independent of any government. Does anyone possibly persist in believing, 10 years into (not after) the crisis, that the ECB has chosen policies which benefit the 99% and not the 1%?

There is widespread agreement in Iran that Islam tolerates capitalism – there are plenty of private banks – but Iran has agreed with socialism that the only solution is to have the biggest banks owned by the state. That is the only way “strings” can ever be applied to taxpayer money-created-loans in order to create a virtuous – and not exploitative – monetary cycle between government and business.

Such a solution is not proposed by a capitalist like Prins. She even tries to intimate that China’s Central Bank is almost equally duplicitous (though she could never get away with implying that China’s central bank was as exploitative), which is pure political nihilism and easily disproved.

The reality is that governments must issue paper money and private bankers act as the middleman to get this money to citizens… but only in capitalist countries. In socialist-inspired countries government workers serve as the middleman, and that is why they are succeeding in the 21st century. China and Vietnam are the two biggest boomers since 1980, while Cuba, Iran, Venezuela and a handful of others would be booming if they were not so terribly sanctioned.

Conclusion: There is no god but God

(That is perhaps the theological heart of Islam there, and repeated in every Salah daily prayer. Various stone idols with multiple limbs, the Christian trinity and Western central bankers all are not God because there is only one, single God and His name is God.)

Allow me to conclude with a few more indisputable truths, many of which have been painfully learned over the past decade:

  • Neoliberal central bankers are not as competent as even those much-maligned Iranian Revolutionary Shi’a mullahs. Per Prins:

“With rates already near zero, or negative in some countries, there is little-to-no room to maneuver in the event of a looming crisis. After the decade-long money-conjuring policy, one with no real end in sight, one thing has become clear: central bank craftsmanship has been ineffective, at best, and has demonstrated gross negligence for the lasting consequences at worst. The assumption that these central banking policies will anytime soon evoke real growth is as preposterous as it is wrong.”

  • Once these paper props are stopped, chaos is certain to result in the Western economy. This chaos was always merely postponed via QE’s “helicopter money” (money thrown from helicopters (to the rooftops of fancy banker soirees?) in the hope that it will do good); this chaos will be even worse because 10 years of failed policies logically means that the West’s economies are far weaker than they were 10 years ago.
  • Capitalism is guaranteed to go from boom to bust, but the 2008 bust was both exceptionally bad and exceptionally driven by the US. The policy response was also exceptionally bad and also exceptionally driven by the US, and is also culturally designed to make Western society’s labor and financial laws even more exceptionally like those of the US.
  • If Western central bankers wanted to do everything they could to empower their enemy – socialist China – only then can they consider themselves as having been a success. The past decade has seen China soar so high they have broken the glass ceiling of a unipolar world. In slower historical processes, China has floated its yuan since January 2016, no longer pegging it to the dollar, and they have gotten the yuan added to the IMF Special Drawing Rights basket. QE could have changed the nature of Western societies in a good way, as it did in China, per Prins: “In China, conjured money went to building real things, whether they were needed or not, whereas for the rest of the G7, it tended to go into less tangible and more speculative uses.” The idea that China is building “unneeded” things and ghost towns is pro-capitalist propaganda, and is debunked here, but the result is clear: QE has only made China stronger but the West weaker.
  • The West has been told that the problem is developing countries not pulling their weight – China (alleged currency manipulation, their “slowdown” from incredible growth to merely fantastic growth, their trade war, etc.), Greece and other weak economies – when both the primary cause of the Great Recession and the primary cause of the continued global slowdown has been due to following the leading ideologies of the capitalist-imperialist West.
  • What the MSM has refused to shout from the rooftops is that all these trillions of QE could have gone directly into the pocket of the average person and produced comparatively spectacular economic growth on the macro level and on the micro/individual level. Half could have gone to citizens and the other half to infrastructure growth, and the money-conjuring nations would have assured their people 50 years of success and modernity. Sadly, capitalism does not believe in controlling their banks or their 1%. Instead, as everyone reading this fringe series on a fringe website written by a fringe hack journalist likely already knows, it went into the FIRE economy (Finance, Insurance and Real Estate) and created massive bubbles worse than the ones a decade ago.

It comes down to a palpable feeling of social responsibility in government policy – there is none in hyper-competitive, “you have no right to a social safety net” Western neoliberal capitalism: contrarily, there is some of this rather holy spirit in Iranian Islamic Socialism, Socialism With Chinese Characteristics, Cuban-style socialism, etc.

It does not matter if this social responsibility comes from fear of God, or fear of incurring social shame or fear of el Norte, or whatever – results matter in social policy, because they mean life and death; because social policy always has and always will include very real judges dispensing very real (even if unfair) justice. Western distractions like “psychological motivation” are mainly overly-dwelled upon by existential Western urbanites who need to pay a psychologist to get them to finally accept that they are ragingly self-destructive, just like their economic principles and policies.

I will allow you to skip to the final page (of my series, not Prins’): At some point China will be asked to pick up the baton of QE collusion, because they are the only major economy which hasn’t done it yet… and they will not do it.

Why would they save the West? Not just because of their socialist ideals, nor their “Century of Humiliation”, but also because they have already been propping up the US monetarily (along with Japan) for quite some time.

But perhaps realizing that China won’t devalue its own economy via Western economic policies, the US has begun their fourth round of Quantitative easing. Their private media/propaganda outlets are ordering us “don’t call it QE4”, but it’s exactly the same as before: printing new money to give to private banks with no strings attached.

QE, like God, has to be permanent.

Unlike God, there will be a reckoning for QE one day and it will be worse than in 2008.

For now, the West remains righteous neoliberal believers, and heaven rain down furious destruction on any Yellow Vester who smashes the window of a Western bank!

An 10-part series may seem like a lot, but these articles are shorter than my usual output when it comes to analytical series (Part 1 is the longest, or nearly). This series is essentially a continuation, updating and expansion of a 7-part series I wrote in autumn 2017 which also covered the failed Western policy of QE. Here is the list of articles slated to be published, and I hope you will find them useful in your leftist struggle!

***********************************

Part 1 – Western central bankers: they’re God, they trust – a 10-part series on the QE economy

Part 2 – How QE has radically changed the nature of the West’s financial system

Part 3 – QE paid for a foreign buying spree: developing countries hurt the most

Part 4 – Iran vs Mexico: ‘economic inflows’ versus ‘economic independence’

Part 5 – Understanding the West’s obsession with inflation

Part 6 – The new ‘beggar thy neighbor’: wars to devalue labor, not currencies

Part 7 – Blaming China for the Great Recession… to avoid emulating China’s (socialist-inspired) success

Part 8 – 1941, 1981, 2017 or today – Europe’s mess is still Germany’s fault

Part 9 – Don’t forget the real root of Brexit: fear of Eurozone economic contagion

Part 10 – Bankocracies: the real Western governance model


Ramin Mazaheri is the chief correspondent in Paris for Press TV and has lived in France since 2009. He has been a daily newspaper reporter in the US, and has reported from Iran, Cuba, Egypt, Tunisia, South Korea and elsewhere. He is the author of the books I’ll Ruin Everything You Are: Ending Western Propaganda on Red China and the upcoming Socialism’s Ignored Success: Iranian Islamic Socialism. His work has appeared in various journals, magazines and websites, as well as on radio and television.

October 21, 2019 Posted by | Book Review, Economics, Timeless or most popular | , , , | Leave a comment

Class Issue: Swedish Communist Newspaper Changes Tune on Immigration

Sputnik – October 21, 2019

According to the newspaper’s new editor-in-chief, immigration is not only a right-wing issue, but something that directly affects the working class.

In a marked switch, Proletären (“The Proletarian”), the mouthpiece of the Communist Party, will begin to report on the negative consequences of immigration.

Robert Wettersten, the newspaper’s new editor-in-chief who replaced Jenny Tedjeza after 18 years at the helm, suggested that Proletären’s goal is to “dare to stick out, provoke and ponder the issues that affect the working class anno 2019”.

According to Wettersten, restrictions on the right to strike, which was a relevant issue for many previous generations of left-wingers, is no longer something workers care about. Instead, immigration and integration as well as law and order are at the top of the list among the issues that labour voters consider important.

“Many regard it as a typical right-wing issue, and nothing that a communist labour newspaper should write about. I think that’s wrong. If these are issues that concern workers, then it is our damned duty to take them up in Proletären”, Robert Wettersten said.

Otherwise, he continued, you are “just a working-class newspaper on paper, not in reality”.

“Purely objectively, migration affects most things; labour market, housing situation, municipal finances, equality – you name it! And it is mainly workers and ordinary people who are affected by crime. So this is not an exclusively labour issue, I don’t think so”, Wettersten stressed.

Proletären has been issued by the Communist Party since 1970. A lot of famous Swedes, such as Jan Myrdal, Peter Birro, and Sven Wollter have contributed to the newspaper.

Sweden, a country with long-standing socialist traditions, has not one but two active communist parties, the Communist Party and the Swedish Communist Party, both originating in the 70s. Surprisingly, though, the two are at odds with each other despite formally sticking to Marxism-Leninism, not least over the issue of immigration.

In July 2018, the Swedish Communist Party decided to break all cooperation with the Communist Party, citing the latter’s “development towards opportunism and its adoption of right-wing populism”. Both, however, remain in effect fringe parties with no parliamentary representation.

Owing to the Swedish establishment embracing mass immigration in recent decades, the share of foreign-born has reached 2 million (or 20% of the Swedish population).

October 21, 2019 Posted by | Economics | , | Leave a comment

‘Naive wind industry could destroy our way of life’

By Andrew Lee | Recharge | February 20, 2019

Clean power, green jobs, no emissions – the wind industry is used to being one of the good guys. But to Åsa Larsson-Blind, president of the Sami Council, it’s just the latest – and potentially most deadly – industrial threat to a fragile, ancient culture focused around reindeer herding up towards the Arctic Circle.

“The wind industry often says it wants to have a dialogue,” Larsson-Blind told Recharge. “But I believe it thinks it is easier to accommodate than it actually is. I think it has a naïve view that it is just putting up some windmills, not taking away [reindeer] pastures.”

The most immediate spark for Larsson-Blind’s anger is the Norwegian state’s rejection of a non-binding request from the UN Committee on the Elimination of Racial Discrimination (CERD) to order a halt to work on the Storheia wind farm in central Norway, ahead of further investigation of the impact on traditional reindeer husbandry at the site.

The 288MW Storheia is the second and largest project in the Fosen complex, the 1GW development led by Norwegian utility Statkraft. According to the Sami Council, like other wind farms already operating across the Nordic states and – far worse – the many more in the pipeline, it will have a drastic effect on the reindeer grazing lands that have underpinned the livelihoods and culture of the indigenous Sami people for thousands of years.

Storheia’s 80, V117 Vestas turbines are due to start installation from April. The Sami Council hoped its complaint to the UN CERD, followed by the organisation’s mid-December request for a pause to work, would at least prompt the Norway to allow time for more studies of the project’s impact.

But Larsson-Blind is resigned to a decision that she claimed reflects the odds stacked against the Sami as they attempt to defend the herders’ way of life against a regional wind boom. “We know there are huge economic interests that are at stake.”

A favourable regulatory regime, excellent wind conditions and demand from the region’s flourishing data centre sector means Nordic wind power is moving north and its projects getting larger. The Sami people – numbering about 100,000, and whose traditional lands stretch across Norway, Sweden, Finland and part of Russia – fear the consequences. With a potential 4GW total scope, Markbygden in Sweden is another Nordic mega-project with implications for the Sami.

Wind is the most recent of a clutch of industries to impinge on lands traditionally used for reindeer husbandry – mining and logging are others – but the scale of the projects planned in the Nordics could be “the last straw”, said Anna Skarin, a researcher at the Swedish University of Agricultural Sciences, who has investigated the impact of the industry on reindeer grazing lands.

Skarin – who says her work on the issue is non-partisan and funded by the Swedish Energy Agency – has found reindeer avoidance of turbines even on small projects of eight or 10 machines, with an impact observed up to 5km away. The reindeer have a visual aversion to the turbines and, it is believed – Skarin is about to start work to establish for sure – also dislike their noise. On top of that comes disruption from the associated construction work and infrastructure needed to support the projects.

At the level of build-out planned, Skarin reckons the ability to implement mitigation measures could be stretched to breaking point. “There are thousands of turbines in the planning system,” Skarin told Recharge. “I think if everything is built, it will really be a big impact on the ecosystem. We’ve already seen it beginning.”

The number affected is hard to pin down, but Skarin estimates there are 1,000 reindeer herders in Sweden alone, most of them Sami.

Larsson-Blind claims the threat from the wind industry is one of “life or death” for the Sami culture. “When a big wind farm comes like Fosen, it will be impossible to carry on the traditional lifestyle [embodied by reindeer herding].

“The traditional way of life is considered one of the big denominators of Sami culture. If you can’t continue that way of life and pass on the culture, you have no culture.”

Her most scathing criticism is reserved for the Norwegian state, which she believes is providing legal cover for wind power and other industries in a manner that shows “double standards” in a nation that likes to see itself as a paragon of human rights.

In its rejection of the CERD request for a pause at Fosen, Norway’s energy ministry found “no basis” for complying, noting that the project has been “thoroughly tested in several rounds in the legal system” during which racial discrimination against the Sami did not arise as an issue.

Larsson-Blind claims that legal system simply isn’t set up to adequately deal with the issue, leaving the Sami with no choice but to turn to international agencies like CERD. “The hard thing is that we do not have enough support from legislation or the government in securing Sami rights to land.” And she appealed to the wind industry to take an independent view of its impact.

“Every company needs to make sure they are taking Sami rights to land into consideration. They can’t just trust the state processes, because they are not perfect.”

For its part, the Nordic wind sector is at pains to emphasise its efforts to take account of the Sami when developing projects – and to scrupulously abide by the legal process operating in each jurisdiction.

Asked by Recharge whether a request from a UN agency should of itself be enough to prompt a halt in work at Fosen, a spokesman for Statkraft said: “If you don’t look at the facts of the case, I can see it would be easy to jump to that conclusion.”

But a “long and thorough licensing process” had consulted all affected parties, “and we know the effect on reindeer herding was given extensive attention, and thoroughly assessed during the appeals processes”.

The Statkraft spokesman pointed to mitigation measures for reindeer populations contained in the license – and that a compensation agreement had been struck with the local herders.

“We do acknowledge that the reindeer herders will be negatively affected by the wind farm. But the negative effects will be mitigated and compensated fully.”

“We are committed to act in a sustainable, ethical, socially responsible manner in everything we do,” said the Statkraft official.

Charlotte Unger, head of industry association Svensk Vindenergi, is also keen to stress the industry’s “dialogue” with the Sami.

“Since they depend on nature with their reindeers, and of course a stable environment, trying to hinder climate change is of course very important also for the Sami people. I hope we could find solutions that are good for [the industry], the Sami people, and regarding climate change,” Unger told Recharge.

With the Sami on the frontline of climate change around the Arctic Circle, this is an argument Larsson-Blind hears often – but it cuts little ice with her.

“Do children really have to grow up without their language, their culture, in the name of fighting climate change?”

October 21, 2019 Posted by | Economics, Environmentalism, Ethnic Cleansing, Racism, Zionism, Timeless or most popular | | Leave a comment

Brexit: Parliament Tethers Britain to a Failing Experiment

Europe is crumbling, & Britain’s elite desperately want to be part of the wreckage

By Kit Knightly | OffGuardian | October 20, 2019

Brexit isn’t going to happen. Left or Right – Lexit or Rexit – it’s over. It’s time to make peace with that idea.

Penned in by the absurd Benn Act, No Deal is off the table, which means Britain will be forced to either remain or accept a deal that’s Remain by another name.

The Letwin Ammendment and Johnson’s unsigned extension request are just morbid theatre. Unnecessary nails in a well-sealed coffin.

It’s all very Weekend at Bernies’ – A lame cast of characters, puppeteering Brexit’s corpse to keep up a tired joke that was never funny to begin with.

Parliament has become an absurd pantomime, where a clown Prime Minister – his majority willfully destroyed – sets up straw men that the “opposition” bayonet with increasingly maniacal glee. No thought is given to policy or consequences, only increasing the tally of Boris Johnson’s parliamentary defeats.

Labour, and the bedraggled, hysterical remainers in the Lib Dems/TIG/Green Party, have become nothing but contrarians – automatically gain-saying anything tabled by the government for the simple joy of humiliating the nation’s Court Jester in Chief.

Corbyn has been so successfully gaslighted by his remain-heavy PLP he doesn’t even realise he’s betraying his life-long principles, his mentor Tony Benn, and entire swaths of the Labour’s Northern heartlands, who all voted to leave.

When a general election does come, it will mean nothing.

Labour will likely be destroyed as working-class voters either flock to the Brexit Party or simply collapse into the apathy of the voiceless, and stay home.

If Labour scrapes together enough voters from Remain country in Scotland and London to claw their way to a small majority, well their socialist manifesto will be crippled by the EU’s austerity policy and restrictions on nationalisation.

In either event, Corbyn will be replaced by a New Labour non-entity of little renown and less worth. The papers will declare socialism dead (again), and maybe clap Corbyn on the shoulder for doing “well, considering” and “changing the conversation”.

We’ll be invited the celebrate the new (inevitably) female leader as a sign of “progress”, while society continues to slip backwards.

Whether the hardcore Remainers get their “People’s Vote” or not, and whichever of the carousel of undesirables happens to be Prime Minister when it all eventually wraps up, Brexit is dead. Parliament killed it.

This on-going, slow-burn sabotage is hard to watch – but it’s not what this article is about.

What it’s about is a question. An important question. One that should weigh heavily on the shoulders of Remainers on the eve of their – for want of a better word – victory:

Do we really want this? Does the EU, right now, really look like something we want to be a part of?

Let’s run down the situation on The Continent.

France is miserable, sick of austerity. Sick of spending cuts and falling standards and neo-liberal economics promising a trickle-down that never seems to come.

In Paris – and many other French cities – the Yellow Vests are nearing their fiftieth straight week of protests, and don’t seem to be slowing down (Hopefully they plan something nice for their first birthday).

People have lost eyes, hands, even lives. The Hong Kong protests – so long front-page news in the UK – have been a picnic in comparison.

In Hungary, an elected President is held hostage by the bureaucracy of the EU. Whatever you think of Orban, he was democratically elected to enact the political promises he made during his campaign. That Brussels can sanction him, and threaten to remove Hungary’s voting rights, is perverse. Anti-democracy in the name of democracy.

They say it’s about “protecting European values”, but is it?

That’s pretty hard to believe, considering the situation elsewhere in Europe…

Spain will join France in the flames soon. They already sent thirteen politicians to prison for sedition.

Take a moment to consider that – actual “sedition”.

This comes after sending in riot police to break up a peaceful referendum. Spanish police beat voters, arrested protesters and destroyed ballot boxes.

Madrid has faced no punishment, or even criticism, for this. They – unlike Orban – have escaped any sanction or censure. Police attack Catalonian independence protests on the streets of Barcelona…and Brussels’ silence is deafening.

(Imagine Russia had just jailed 13 opposition politicians for sedition. Imagine Maduro was blinding protestors with rubber bullets. The difference in coverage and attitude would be breathtaking.)

What is the difference between Budapest and Paris? Or Moscow and Madrid?

Well, Orban is anti-EU (as are the Gilets Jaunes). The governments of France and Spain are Pro EU, with a ferocity that fully justifies the capital P.

Follow a pro-EU agenda of austerity, uncontrolled immigration and globalisation and you can blind as many protesters as you want.

The harder you look, the more it seems “European values” is slang for “European power”.

The talk of the EU Army bubbles away on the back-burner, whilst the European Parliament merrily votes through massive funding for “StratCom” programmes to “counter misinformation”.

We hear about peace, but we don’t see it. We hear about prosperity, but we don’t feel it.

Austerity is choking the birthplace of democracy to death, and its – again, for want of a better word – “leaders” are spending tax revenues on propaganda and the military.

Is that going to help a single ordinary citizen out of poverty? Are these moves designed to make life fair, equal or easy for ordinary citizens? Or consolidate and enforce authority?

Look at Europe. Really look at it. It’s burning. And yet Remainers sit amongst the flames and say everything’s fine.

We are lectured on “European Values”, but that phrase has been meaningless for years, and every day edges closer and closer to full-on parody.

Europe is a sinking ship the rats in Parliament refuse to leave.

Kit Knightly is co-editor of OffGuardian. The Guardian banned him from commenting. Twice. He used to write for fun, but now he’s forced to out of a near-permanent sense of outrage.

October 19, 2019 Posted by | Civil Liberties, Economics | , , | Leave a comment

Chevron hopes Trump allows it to stay in Venezuela

RT | October 19, 2019, 2019

US oil giant Chevron is hopeful that the Trump administration will extend a waiver allowing the company to continue doing business in Venezuela despite tough US sanctions on the South American country.

“We are a positive presence in Venezuela, and we are hopeful that General License 8C is renewed so that we can continue certain operations in the country for the long-term,” Chevron spokesman Ray Fohr said in a statement, as cited by Reuters.

General License No 8C is a document that authorizes transactions in Venezuela involving its state oil company PDVSA and its entities, according to the US Department of Treasury. Apart from Chevron, four other multinational corporations enjoy the right to continue certain operations in the country, including oil industry firms Halliburton, Schlumberger, Baker Hughes and Weatherford International.

As the document expires on Friday, Chevron, which has been operating in Venezuela for nearly a century, needs an extension to the waiver. The Trump administration is already considering the move, Bloomberg reported on Friday, citing sources. The report said that it is unclear if other companies will be granted a similar 90-day sanctions reprieve, as the Treasury wants to adhere to its “maximum pressure strategy” to further limit Venezuela’s oil production.

US economic warfare against the Bolivarian republic has seen multiple rounds of sanctions, including punitive ones targeting the country’s vital energy sector. Venezuela’s crude production has already neared a historic low of around 600,000 barrels per day, according to S&P Global Platts.

Analysts have recently predicted that a US refusal to extend the waivers for Chevron and other companies mentioned in the General License could further halve the country’s oil output.

“I think you’d see it go certainly to under 300,000 b/d within a month,” said Neil Bhatiya, an associate fellow with the Center for a New American Security, as cited by S&P Global Platts. “The question after that is whether and how fast there is backfilling by Chinese, or, more likely, Russian state firms. It will take a while though, so a Chevron-less Venezuela will probably be in the [sub-300,000 b/d] zone for the remainder of the calendar year.”

October 19, 2019 Posted by | Economics, Malthusian Ideology, Phony Scarcity | , | Leave a comment