Aletho News

ΑΛΗΘΩΣ

New US Anti-Russia Sanctions Made to Head Off Senate-Proposed Sanctions – Expert

Sputnik – August 11, 2018

Russian Prime Minister Dmitry Medvedev said that the new sanctions the US plans to introduce might be treated as a declaration of economic war. Radio Sputnik discussed this in detail with independent political analyst Gilbert Doctorow.

Sputnik: What is your take on the statement made by the Russian prime minister? Can the sanctions lead to economic warfare between Moscow and Washington?

Gilbert Doctorow: There’s been a low-grade economic warfare going on for several years ever since the initial introduction of sanctions going back at least two years. The question is what is new here and we really don’t know. The markets reacted severely; the ruble fell drastically. Certain Russian shares like Aeroflot or Sberbank were beaten down five percent and more in the first reactions to the announcement of the United States. But the fact is that the real harm to the Russian economy is coming from the first sanctions. And for the greater sanctions scheduled three months after the introduction, after Russia has proven it is unable to take responsibility for the Skripal poisoning and face the consequences; we may assume that Russia will not admit to having taken part in something that it didn’t participate in. Both the initial sanctions and those that would come in place three months later have not been specified, so to speak about the severity of this particular action by the [US] administration is premature. Nonetheless, I do adhere to one interpretation of what is happening that makes some sense to me: namely, these new sanctions, with respect to the Skripal case, were introduced by the Trump administration to head off what had been described as draconian and genuinely nuclear button sanctions that members of the US Senate have intended to impose on Russia, from a bill introduced by (…) and those sanctions, which genuinely take you to very limits of economic warfare at the level of hostility that very often is jumping off point to armed conflicts, those sanctions would be prevented or sidelined by the more modest sanctions that are announced by the administration. This is the interpretation that I pass on; I think it makes a lot of sense. The level of US-Russian trade has never been very high and that is one of the reasons why it has always been a cheap and easy thing for the American Congress to do – to impose sanctions or otherwise limit Russia’s commercial and foreign policy possibilities in the world by unilateral US action. That always has been very cheap for the United States because the whole volume of bilateral trade has been minimal. The commercial interests of the US and Russia have never been matched in a way that Russia’s interests are matched with the EU and, more recently, with China. If these new sanctions fell on Russia absent any other trade developments or other foreign policy initiatives by the United States’ third parties then one could get very excited about it, but considering that Donald Trump has begun a very bitter trade war with China, with which it has at least $500 billion in trade, possibly to be held ransom to new tariffs up to 25 percent, these sanctions that the United States is considering imposing on Russia such as suspending Aeroflot flights, which only would put Aeroflot in the same status with Delta, since at the moment Aeroflot is the only surviving supervisor of direct air links, or somehow affecting the situation with Sberbank. When you consider the dollar value of these sanctions, they are incredibly small compared to what the United States is doing with China and is threatening to do with the EU in the tariff war. Therefore, you have to put the Russian situation in this broad context of US economic aggression against the rest of the world.

Sputnik: What’s your take on the situation generally?Gilbert Doctorow: It will very much depend on the November mid-term elections in the United States. What we are seeing now from the point of Mr. Trump’s enemies in the Senate, both enemies within his own party and enemies, most obviously, in the Democratic Party, is a scrambling for positions that these respective politicians will place before the electorate for the November elections. If Donald Trump loses control of both Houses of Congress then he will be impeached. If he loses control of one House then we will see a continuing fight between the executive and the legislative over policy towards Russia. Russia is really a political football in the US for the partisans who are playing out their antagonisms and reaching out the electorate to take or to retain control of Congress. The thing to watch is what happens in November. The Russian economy has been preparing for this type of activity for some time and I think that the Russian economy is quite resilient or will find its footing very quickly when the particulars are announced. The Russians have held back, they have been very restrained. I think the thing to look at is at what moment will Russia pull the plug on its delivery of rocket engines to the United States. That is, perhaps, the single most important countermeasure that Russia has to respond to draconian sanctions from the US. If in the current round of Russian countermeasures we don’t see any mention of these rocket engines then you can assume that whatever Mr. Medvedev is saying publically, the Russian government is not taking as a serious threat the America administration’s posturing.

August 11, 2018 Posted by | Economics | , | Leave a comment

Sanctioning Russia for false link to UK poisonings ‘unacceptable & unlawful’ – Kremlin

RT | August 9, 2018

Dmitry Peskov, the press secretary of Russian President Vladimir Putin, says the use of a Russian link to recent UK poisoning incidents to justify fresh US sanctions against the Kremlin is a violation of international law.

“In general, of course it’s necessary to say that we consider it categorically unacceptable that the new restrictions, that we continue to consider unlawful, are associated with the Salisbury case,” Peskov said in his Thursday interview with reporters.

“The association with these events is unacceptable for us. And we are convinced that such restrictions, together with the ones that the American side has imposed preemptively, are totally unlawful and contradict international law.”

“Russia does not have, and it has never had, anything to do with chemical weapons’ use, this is out of question. Moreover, we cannot confidently discuss what was used in Great Britain and how it was used because we have no information whatsoever. We have received no answers to our proposal to the British side to hold joint investigation into this incident that causes serious concern on our part,” the Kremlin official added.

Peskov told reporters that he considered any speculation about the effect of sanctions on the Russian financial system unwarranted, because this financial system was very stable. He noted that this stability had been proven in previous standoffs and that the Russian authorities had taken deliberate measures to make the country’s finances capable of withstanding the unpredictable behavior of “partners across the ocean.”

He stressed that it was difficult to reconcile the latest unfriendly actions by the US with the atmosphere established during the recent summit between US President Donald Trump and Putin in Helsinki.

When reporters asked Peskov about a possible Russian response to new US measures, he insisted it was too early to discuss the issue because the official US statement and quotes in the media from certain high-ranking sources did not make clear Washington’s official position.

Earlier, the US State Department announced the plans to impose new sanctions on Russia over its alleged role in the poisoning of double agent Sergei Skripal and his daughter Yulia in the UK in March. The first package of sanctions is scheduled to come into effect on or around August 22 and will reportedly include a ban on exports of sensitive national security goods to Russia.

The second round of sanctions, which includes downgrading diplomatic relations, banning the Russian airline Aeroflot from flying to the US and cutting off nearly all exports and imports, will reportedly be imposed three months after the first one, unless Russian authorities provide “reliable assurances” that they won’t use chemical weapons in the future and agree to “on-site inspections” by independent monitors.

Earlier today senior Russian lawmakers called the planned restrictions unfounded and likened Washington’s behavior to actions of a police investigator who attempts to extract evidence from an innocent suspect using torture and threats.

Read more:

Trump is real target of anti-Russian sanctions proposal, says Russian MP

Snr Russian senator likens US sanctions plan to police torture for confession

August 9, 2018 Posted by | Economics, Russophobia | , , | Leave a comment

The knife in Iran’s back: Trump opens door to chaos

By Vijay Prashad | Asia Times | August 9, 2018

On Tuesday night, Iranian President Hassan Rouhani went on television to talk about the reinstatement of sanctions by the United States against his country. He prepared the country for more privations as a result of the sanctions. Responding to US President Donald Trump’s offer of a meeting, Rouhani said pointedly, “If you stab someone with a knife and then say you want to talk, the first thing you have to do is to remove the knife.”

It is clear to everyone outside the US government that Iran has honored its side of the 2015 nuclear deal that it made with the governments of the five permanent members of the United Nations Security Council (the US, the UK, France, China and Russia) as well as the European Union. In fact, quite starkly, EU foreign-policy chief Federica Mogherini said, “We are encouraging small and medium enterprises in particular to increase business with and in Iran as part of something that for us is a security priority.”

In other words, Mogherini is asking companies to resist Trump’s policy direction. What she is saying, and what Rouhani said, is that it is the United States that has violated the nuclear deal, and so no one needs to honor the US sanctions that have been reinstated.

Mogherini pointed to “small and medium enterprises” because these would not be the kind of multinational corporations with interests in the United States. But it is more than small and medium-sized enterprises that are going to challenge the US sanctions. China, Russia and Turkey have already indicated that they will not buckle under US pressure.

China

“China’s lawful rights should be protected,” said the Chinese government. China has no incentive to follow the new US position.

First, China imports about US$15 billion worth of oil from Iran each year and expects to increase its purchases next year. State energy companies such as China National Petroleum Corporation (CNPC) and Sinopec have invested billions of dollars in Iran.

CNPC and Sinopec also have shares in Iran’s major oil and gas fields – CNPC has a 30% stake in the South Pars gas field and has investments in the North Azadegan oilfield, while Sinopec has invested $2 billion in the Yadavan oilfield.

China’s Export-Import Bank, meanwhile, has financed many large projects in Iran, including the electrification of the Tehran-Mashhad railway. Other Chinese investment projects include the Tehran metro and the Tehran-Isfahan train. These projects are worth tens of billions of dollars.

Second, China is in the midst of a nasty trade war with the United States. In late August, Trump’s government slapped 25% tariffs on $16 billion worth of Chinese imports into the United States. China responded with its own tariffs, with its Commerce Ministry saying that the US was “once again putting domestic law over international law,” which is a “very unreasonable practice.”

The “once again” is important. China is seized by the unfairness of the reinstatement of sanctions on Iran, not only for its own economic reasons but also because it sees this as a violation of international agreements and a threat to Iranian sovereignty – two principles that China takes very seriously.

Sinopec, knee-deep in Iran’s oil sector, has now said that it would delay buying US oil for September. Iran has now been drawn into the US “trade war” (on which, read more here).

The Chinese have been quite strong in their position. The Global Times, a Chinese government paper, wrote in an editorial, “China is prepared for protracted war. In the future, the US economy will depend more on the Chinese market than the other way around.” This fortitude is going to spill over into China’s defense of Iran’s economy.

Russia

Russia and Iran do not share the kind of economic linkages that Iran has with China. After the 2015 sanctions deal, Iran did not turn to Russian oil and gas companies for investment. It went to France’s Total – which signed a $5 billion deal. Russia and Iran did sign various massive energy deals ($20 billion in 2014), but these did not seem to go anywhere.

Russia’s Gazprom and Lukoil have toyed with entry to Iran. In May, Lukoil directly said that it would be hesitant to enter Iran because of the proposed US reinstatement of sanctions. Lukoil’s hesitancy came alongside that of European companies such as Peugeot, Siemens and even Total, which decided to hold off on expansion or cut ties with Iran. Daimler has now officially halted any work in Iran.

It was a surprise this year when the Iranian Dana Energy company signed a deal with the Russian Zarubezhneft company to develop the Aban and West Paydar oilfields. The contract is for $740 million, which in the oil and gas business is significant but not eye-opening.

In July, senior Iranian politician Ali Akbar Velayati met with Russian President Vladimir Putin in Moscow. He left the meeting saying, “Russia is ready to invest $50 billion Iran’s oil and gas sectors.” Velayati specifically mentioned Rosneft and Gazprom as potential investors – “up to $10 billion,” he said.

When Putin was in Tehran last November, Russian companies signed preliminary deals worth $30 billion. Whether these deals will go forward is not clear. But after Trump’s reinstatement of sanctions, Russia’s Foreign Ministry said it would “take appropriate measures on a national level to protect trade and economic cooperation with Iran.” In other words, it would see that trade ties were not broken.

Turkey

Both Iran and Turkey face great economic challenges. Neither can afford to break ties. Turkish Foreign Minister Mevlut Cavusoglu has said that his government will only honor international agreements, and that the US reinstatement of sanctions is not part of an international framework. Turkey, therefore, will continue to trade with Iran.

Iranian oil and gas are crucial for Turkey, whose refineries are calibrated to Iran’s oil and would not be able to adjust easily and cheaply to imports from Saudi Arabia. Almost half of Turkey’s oil comes from Iran.

Turkish-US relations are at a low. Conflict over the detention of an American pastor, Andrew Brunson, has led to the US sanctioning two Turkish cabinet ministers, Justice Minister Abdulhamit Gul and Minister of Interior Suleyman Soylu. Gul is a leader of the ruling Justice and Development Party (AKP), while Soylu came to the party at the personal invitation of President Recep Tayyip Erdoğan. These are not men to be intimidated by US pressure.

A US mission led by Marshall Billingslea, assistant secretary of the US Treasury, went to Turkey to persuade the government to join the US sanctions. Meanwhile, the US has begun to put pressure on Turkey’s Halkbank, one of whose senior officials was found guilty of violation of the US sanctions on Iran by a court in the United States this year. This kind of pressure is not sitting well with the Turkish government.

Inside Iran

Pressure is mounting inside Iran. Protests have begun across the country, a reflection of the distress felt by the population as the country’s currency, the rial, slides and as fears of inflation mount.

Last week, the Iranian government fired the head of the central bank, Valiollah Seif, and replaced him with Abdolnasser Hemati. It reversed the foreign-exchange rules, including the failed attempt to fix the value of the rial that was put in place in April.

Hemati had been the head of Iran’s state insurance firm and before that of Sina Bank and Bank Melli. He is highly trusted by the government, which had already appointed him as ambassador to China before hastily rescinding that offer and moving him to the central bank. Whether Hemati will be able to balance the stress inside the Iranian economy is yet to be seen. Faith in the currency will need to be strengthened.

As part of that, Iran’s government has cracked down harshly against financial fraud, particularly scandals over foreign exchange. The man who signed the 2015 nuclear deal, Deputy Foreign Minister Abbas Araghchi, had to watch as his nephew Ahmad Araghchi, the central bank’s vice-governor in charge of foreign exchange, was arrested along with five other people as part of an inquiry over fraud. The message: No one, not even the Araghchi family, is immune from the long arm of the law.

Trump’s belligerence, the refusal of key countries to abide by Trump’s sanctions (including the European Union, but mainly Russia and China), as well as the internal pressure in Iran could very likely create the conditions for a military clash in the waters around Iran. This is a very dangerous situation. Sober minds need to push against the reinstatement of these sanctions – which the Iranians see as economic warfare – as well as escalation into military war.

This article was produced by Globetrotter, a project of the Independent Media Institute.

August 9, 2018 Posted by | Economics, Militarism | , , , , | Leave a comment

Are Globalists Plotting a Counter-Revolution?

By Pat Buchanan • Unz Review • August 7, 2018

On meeting with the EU’s Jean-Claude Juncker last month, Donald Trump tweeted: “Both the U.S. and the E.U. drop all Tariffs, Barriers and Subsidies! That would finally be Free Market and Fair Trade.”

Did Larry Kudlow somehow get access to Trump’s phone?

We know not. But, on hearing this, Steve Forbes, Stephen Moore and Arthur Laffer broke into the “Hallelujah” chorus of Handel’s “Messiah.”

“Amen,” they thundered in The New York Times.

Trump should declare “total trade disarmament” to be national policy and make free trade his “legacy” to America. Such a proclamation, they wrote, would assure Trump the “moral high ground” in the global debate and transform him from “evil disrupter of international commerce to potential savior.”

For free trade is always and ever a “win-win for trading partners.”

To read the Times op-ed is to appreciate that what we are dealing with here is an ideology, a political religion, a creed, a cult.

For consider the fruits of free trade policy during the last 25 years: the frozen wages of U.S. workers, $12 trillion in U.S. trade deficits, 55,000 factories lost, 6 million manufacturing jobs gone, China surpassing the U.S in manufacturing, all causing a backlash that pushed a political novice to the Republican nomination and into the presidency.

To maintain a belief in the superiority of free trade to economic patriotism, in the face of such results, is to recognize that this belief system is impervious to contradictory proof.

Still, the enduring enthusiasm of free trade zealots is not the only sign that GOP globalists, having learned nothing and forgotten nothing, are looking to a post-Trump era to resurrect their repudiated dogmas.

In USA Today, Jeffrey Miron, director of economic studies at the libertarian flagship think tank Cato Institute, wrote last week:

“The solution to America’s immigrant problems is open borders. … Open borders means no walls, fences, screenings at airports, ICE … deportations, detention centers or immigration courts.”

And what would happen after we declare open borders?

“Immigrants will not flood into America. … Crime will not skyrocket. … Even if values and culture change, so what? … Who says America’s current values — some of them deeply evil — are the right ones?”

Bottom line for Cato’s Miron: If we throw open America’s borders and invite the world to come in and to remake who we are as a nation, “Think about the money we could save and make.”

This is truly economics uber alles, economy before country.

Other open borders and free trade true believers have begun speaking out. Billionaire industrialist Charles Koch, a megadonor to the GOP, has just lashed out at Trump as “divisive” and denounced the “rise in protectionism.”

Nations, organizations and individuals, said Koch, “are doing whatever they can to close themselves off from the new, hold onto the past and prevent change.”

He added, “This is a natural tendency, but it is a destructive one.”

In a pair of tweets, Trump fired back:

“The globalist Koch Brothers, who have become a total joke in real Republican circles, are against Strong Borders and Powerful Trade. I never sought their support because I don’t need their money or bad ideas. I made them richer.

“Their network is highly overrated, I have beaten them at every turn. They want to protect their companies outside the U.S. from being taxed, I’m for America First & the American Worker — a puppet for no one. Two nice guys with bad ideas. Make America Great Again!”

The billionaire Koch brothers, Charles and David, are threatening to have their network, Americans for Prosperity, withhold funding from GOP candidates who echo Trump on immigration and trade.

The open borders, free trade ideology of the Kochs, the Cato Institute, and such supply-siders as Moore, Forbes and Laffer, have deep roots in the Republican Party establishment.

Milton Friedman was of this school, as was the longtime editorial page editor of The Wall Street Journal, Bob Bartley, who for years pushed for a constitutional amendment declaring, “There shall be open borders.”

Bartley, somewhat prematurely, predicted that the nation-state was “finished” in the New World Order. Yet, today, as tribalism and nationalism are making a comeback, it looks more like the transnational “New World Order” that may be headed for the dumpster.

As long as Trump is in the White House and the party base is so viscerally behind him and his America First agenda, a renunciation of tariffs or a return to globalism is dead.

But what happens after Trump? Who and what comes next?

Republican recidivism — a return to the rejected open borders, free trade agenda of the Bush Republicans — would ignite a firestorm of protest that would tear the party of Trump apart.

Yet, while these ideas have lost Middle America, they are alive and well among the establishment elites of both parties, who have also not given up on a foreign policy of using America’s economic and military power to attempt to convert mankind to democracy.

Copyright 2018 Creators.com.

August 7, 2018 Posted by | Economics, Militarism, Timeless or most popular | | Leave a comment

Trump’s Art of the Deal and Iran sanctions

By M K Bhadrakumar | Indian Punchline | August 4, 2018

An amicable formula seems to be emerging between the Trump administration on the one hand and China and India on the other hand as regards the impending US sanctions on Iran’s oil exports. Below-the-radar consultations are going on between Washington and Beijing and New Delhi.

The Trump administration initially threatened collateral damage to countries such as China and India unless they fell in line with the US diktat to stop all oil imports from Iran to zero by November 4. Oil is at the core of Trump’s containment strategy against Iran, since oil exports are a major source for income for Tehran and the American game plan is all about hurting the Iranian economy until its leadership capitulates and begs him for a meeting.

It’s a hackneyed notion to bully Tehran to make it bend. It never worked in these 40 years – not even under Barack Obama who enjoyed vast political capital in the international community. But the good thing about Trump is that behind the fire and fury, he’s a realist. (By the way, Iranians know it, too, as this utterly fascinating tongue-in-cheek commentary yesterday implies.)

So, after some rounds of diplomacy in world capitals (to test the waters, basically) – Beijing, New Delhi, Ankara, in particular, which are big-time buyers of Iranian oil – Washington began signaling that sanctions can also provide for ‘waivers’ – that is, Trump administration will selectively exercise the great privilege of deciding not to punish countries that may still want to buy Iranian oil after the November 4 cutoff date.

Quite obviously, from the feedback received from American diplomats, Washington senses great reluctance to pay heed to the US demarche. In particular, China and India (which account for over half of Iranian oil exports) are heavily dependent on Iranian oil – and, for good reason too. At least in the case of India, Iran offers oil at a discounted price on deferred payment basis with substantial reduction in freight and insurance costs.

Now, the US cannot possibly sanction the oil industry in China or India because Big Oil is also hoping to do business with them. (For shale oil, Asian market is the preferred destination.) Some analysts predict that Russia, which like America is also an energy superpower, will be a net gainer. Russia can cash in on the needs of China and India for oil; Russia can buy Iranian oil and sell it through swap deals and so on (and make some money in the bargain); or, Russia may even move into the Iranian oil industry in a big way and make investments there. At any rate, it is foolhardy for the US to imagine that it can control the world energy market in terms of price elasticity of supply.

In view of the above factors, the Trump administration is finessing an understanding with China and India whereby the US sanctions policy against Iran does not become an acrimonious issue. The interests to be reconciled are: a) China and India have legitimate interests in sourcing Iranian oil and it is unrealistic and counterproductive to coerce them; and, b) the US too has an abiding interest not to sanction the oil companies of China and India, which are prospective buyers of US oil.

The Bloomberg report, here, says that China has point blank refused to cut Iranian oil imports but may agree to keep imports at the existing level as of November 4. Interestingly, the report cites US officials heaving a sigh of relief: “That would ease concerns that China would work to undermine U.S. efforts to isolate the Islamic Republic by purchasing excess oil.” Plainly put, Washington is relieved that Beijing will not take advantage of the US sanctions against Iran.

On the other hand, the Reuters report on India, here, assesses that Indian imports of Iranian crude oil are dramatically increasing in recent months. A 30% increase is reported in July with crude imports from Iran touching record level of 768,000 barrels per day. (This is a whopping 85% jump over the corresponding  period in July 2017, which was 415,000 bpd)!

Of course, if the US can allow China to keep its import of Iranian oil at the existing level as of November 4, it cannot deny a similar formula to India. And, therefore, doesn’t it make eminent sense that India keeps ramping up its oil imports from Iran to the maximum level possible by November 4?

Evidently, this is Trump’s Art of the Deal at work. By the way, for Iran too, this would provide some ‘sanctions relief’. Which in turn may even ‘incentivize’ Tehran to talk to Trump. If there is anything like a workable “win-win” in politics, this is it, this is it.

August 4, 2018 Posted by | Economics, Wars for Israel | , , , , , | Leave a comment

US Navy Considered $1 Billion Plan for Breaking Down Old Nuclear-Powered Carrier

Sputnik – 03.08.2018

The US Navy has yet to choose a way forward for dismantling the USS Enterprise aircraft carrier. The delay has been motivated in part by the fact that disposing of the nuclear-powered craft could cost more than $1 billion ‒ a pill the Navy is loathe to swallow.

The Government Accountability Office published a report Thursday indicating that in 2013 “the Navy’s cost estimate for the shipyard” in Puget Sound, Washington, “to perform all [USS Enterprise] dismantlement and disposal activities increased — from a range of $500 million to $750 million — to well over $1 billion.”

As a result of this rather significant expense — about 25 percent of what it cost to build the ship in 1958 in inflation-adjusted terms — the Navy decided to ditch the plans. As the ship, built between 1958 and 1961, was the world’s first nuclear-powered aircraft carrier, the government wants to take special care in dismantling it and must comply with stringent guidelines set in place by nuclear regulation bodies separate from the Navy.

There is also a policy precedent to be set by how the carrier is deconstructed, in terms of “the processes, costs and oversight that may be used to dismantle and dispose of nuclear-powered aircraft carriers in the future.” Specifically, the manner in which the Enterprise is disposed of will set an example for how to do the same thing with the US Navy’s aging fleet of Nimitz-class carriers.

One of the thornier issues when it comes to disposal of the carrier is what to do with the nuclear waste produced by its propulsion generators. In 2016, the Navy thought it would have commercial contractors bid for contracts to break down the non-nuclear parts of the ship — everything except what’s referred to as the propulsion space section.

As GAO conducted its study, the Navy decided to ditch this plan. Instead, the Navy is now considering two options for the USS Enterprise, the watchdog noted. One route would be to do most of the deconstruction in Puget Sound, and then dump the nuclear waste at the US Department of Energy’s Hanford Site in southeastern Washington state. The other route is for commercial contractors to do all the dismantling. There is no estimate provided in GAO’s report for how much each of these routes would cost the US Navy, and by extension US taxpayers.

Under the 100 percent commercial dismantling route, the US Navy needs to coordinate with the Nuclear Regulatory Commission (NRC), which has regulatory jurisdiction over the private nuclear industry, the GAO said. The Pentagon agreed with this recommendation, Stars and Stripes reported Friday.

August 3, 2018 Posted by | Economics, Environmentalism, Militarism | | Leave a comment

Why US’ sanctions “bill from hell” on Russia should worry India

By M K Bhadrakumar | Indian Punchline | August 3, 2018

A fortnight after the Helsinki summit on July 16, US-Russia relations are set to take a turn for the worse. In an unprecedented move, White House fielded a joint media briefing by America’s top national security team on Thursday to highlight that Russia is continuing to make pervasive attempts to interfere in the upcoming mid-term elections in the US in November.

One of the top security czars who gave the briefing, National Intelligence Agency director Dan Coats said starkly, “We acknowledge the threat, it is real, it is continuing, and we’re doing everything we can to have a legitimate election. It is pervasive, it is ongoing, with the intent to … drive a wedge and undermine our democratic values.” Importantly, Coats alleged that the Kremlin was involved in the meddling effort which reached into the Kremlin itself.

He said, “Russia has used numerous ways in which they want to influence, through media, social media, through bots, through actors that they hire, through proxies – all of the above, and potentially more. We also know the Russians tried to hack into and steal information from candidates and government officials alike.” (Transcript)

The briefing served three purposes: one, to reject the denials of meddling that Russian President Vladimir Putin maade to President Trump at Helsinki; two, to neutralize the public criticism in the US that Trump has not been unequivocal on the issue; and, three, to give warning to Moscow.

The briefing coincided with a ‘bipartisan’ legislation that was introduced into the US Congress on Thursday to impose stiff new sanctions on Russia and combat cyber crime. The bill includes restrictions on new Russian sovereign debt transactions, energy and oil projects and Russian uranium imports, and new sanctions on Russian political figures and oligarchs. Interestingly, the proposed legislation underscores strong support for the North Atlantic Treaty Organization and expressly forbids the Administration from taking the US out of the alliance without two-thirds of the US Senate voting in favor of any such effort.

The senators who tabled the legislation said in a statement that the proposed new sanctions would target “political figures, oligarchs, and family members and other persons that facilitate illicit and corrupt activities, directly or indirectly, on behalf of Vladimir Putin.” According to some reports, the bill would also require a report to be assembled on the personal net worth and assets of Putin. Quite obviously, Putin himself is in the crosshairs.

Putin’s spirited defence of Trump at their joint press conference in Helsinki on the Russia collusion inquiry has provoked this furious backlash from America’s political class. In such a backdrop, another summit between Trump and Putin in a near future seems highly improbable. A visit by Putin to the White House in the autumn is simply out of the question. The US-Russia ties will remain very tense, too.

On the other hand, in a deceptive show of flexibility that will be keenly noted in New Delhi, US Congress has approved a legislation empowering the president to waive penalties against countries that buy weapons from Russia – provided, of course, Washington is convinced that such countries are seeking closer ties with the US. The US Defence Secretary James Mattis had pleaded with the US Congress for such Russia-sanction-waiver authority that would help countries such as India, which had traditional defence relations with Russia but are now trying to “pull away from the Russian orbit,” (as he put it.)

Evidently, the legislation on waivers is a self-serving move, enabling US arms manufacturers to continue to expand business opportunities in the Indian market. Under the new legislation, the president must nonetheless certify that India is both reducing arms imports from Russia and is expanding defense cooperation with the US, thereby making itself eligible for the waiver from sanctions. In effect, it becomes a tool for Washington to insert itself into the India-Russia defence cooperation as an interested party and to incrementally leverage Indian decisions with a view to atrophy the longstanding cooperation.

Clearly, the US interference in the India-Russia relationship is poised to intensify in the period ahead. If the proposed new sanctions “bill from hell” (tabled on Thursday) gets passed by the US Congress, which is to be expected, energy cooperation between India and Russia will also come under the American scanner. There is a strong business dimension to these US moves insofar as arms exports and energy cooperation also happen to be two thrust areas of export to India. Simply put, Washington hopes to roll back India’s defence and energy cooperation with Russia and seize the resultant business opportunities to boost its own exports to the Indian market.

In strategic terms, the US intention is to undermine the so-called “special privileged strategic partnership” between Russia and India, which would in turn erode the latter’s strategic autonomy and incrementally draw India into the American orbit as an ally.

August 3, 2018 Posted by | Economics, Mainstream Media, Warmongering | , , , | Leave a comment

Politics in bad faith: Alexandria Ocasio-Cortez campaigns in Michigan

By Andre Damon | WSWS | July 31, 2018

Alexandria Ocasio-Cortez, a member of the Democratic Socialists of America, visited Southeast Michigan this past weekend. Her primary victory last month over New York Congressman Joe Crowley has made her, virtually overnight, a leading spokesperson for the Democratic Party.

Ocasio-Cortez appeared at rallies in Detroit, Flint and Ypsilanti, as part of a statewide tour in support of Abdul El-Sayed, a former Detroit health department official running for governor of Michigan.

Ocasio-Cortez speaks at Wayne State University in Detroit

Ocasio-Cortez has been lionized in the press as the leader of a radical wave sweeping over the Democratic Party. Given the location of her events—including Detroit, the poorest large city in America, and Flint, which has been devastated by a lead water crisis—anyone taking her and the DSA’s pretenses to “socialism” seriously might have expected to hear bold proposals for tackling America’s rampant social inequality.

But when it came time for her to speak, what followed was a torrent of evasive and dishonest platitudes. She began her remarks at Wayne State University in Detroit:

My fingers are tingling right now because I know that this room is not just a rally, not just an audience, or even just a community; this is movement. Movement cannot be stopped, movement is like a wave; that energy cannot be contained, and Abdul, like many others, is just the crest, is just the foam at the tip of that wave. This is a movement so much bigger than just one person, there is no one person that is the future, there is a people that is the future.

To see such statements in print is to confirm the impression they produce on the listener: So much hot air.

America needs a “salt of the earth government,” Ocasio-Cortez went on, because, “We know that what is right in one place is what is right in all places.” And so on and so forth.

Like Barack Obama, whom she acknowledges as an inspiration, Ocasio-Cortez revels in seemingly profound motivational statements that are, upon the slightest examination, shown to be devoid of content. Her speeches are a variant of Obama’s slogan: “Yes we can.” She makes no effort to explain why Obama’s “Yes we can” was turned into eight years of “No we can’t.”

She continued, “The future of this nation and the future of this party is working class, the future of this party is working people, the future of this party is the marginalized, it is women, it is gender-extended people, it is people of color, it is the affirmation of justice, that is the future of this party.”

This invocation of the working class, mixed with appeals to other “identities,” is in bad faith, because the entire purpose of her campaign, and of the existence of the DSA, is to promote the Democratic Party, which, along with the Republicans, is a party of the corporate and financial oligarchy.

The Democrats are currently in the midst of a ferociously right-wing campaign centered on denunciations of Trump for “betraying” the country to Russia. In the midterm elections, the Democrats are fielding an unprecedented number of former members of the CIA and the military, which reflects their position as the preferred party of dominant sections of the military-intelligence apparatus.

Ocasio-Cortez’s inability to say anything genuinely oppositional, let alone radical, is bound up with her political role. She has quickly been absorbed into the Democratic Party establishment, and her rhetoric conforms to its politics. In promoting a right-wing party, her “left-wing” gloss is reduced to empty slogans.

Only a few sentences of her speech touched on actual policy. “The future of this party is improved and expanded Medicare for all,” she declared. For Abdul El-Sayed, “Medicare for all” means a statewide health care system paid for by workers from their own paychecks, one which his website boasts will exempt a substantial number of businesses from health care contributions.

Abdul El-Sayed

Such campaign promises are meaningless anyway. Obama declared himself a “proponent of a single payer universal health care program” in 2003, before going on to implement the “Affordable Care Act,” a reactionary attack on health care that shifts the burden from corporations and the state to workers by requiring individuals to purchase private insurance. This was cynically packaged as a major social “reform.”

Of particular note in the rallies to which Ocasio-Cortez spoke was the absence of any reference to foreign policy or the slightest hint of opposition to war. In fact, it was as if the rest of the world did not exist.

When a WSWS reporter asked the candidates at the post-rally press briefing in Detroit, “Do both of you support withdrawing all US troops from the Middle East and Africa?” El-Sayed gave an evasive non-answer: “We’ve got to make sure that we are focused on a foreign policy that articulates what we all can do when we come together around a more peaceful world.”

A staffer immediately attempted to conclude the briefing. When the reporter restated the question, “Ms. Ocasio-Cortez, are you anti-war? Do you support withdrawing all US troops from the Middle East?”

She replied, “I’m sorry, I’m here to support Abdul.”

The press conference immediately concluded, and the candidates were whisked away. (The next day, another WSWS reporter asked Ocasio-Cortez the same question at a rally in Ypsilanti, Michigan. She gave the same rehearsed answer.)

After the conclusion of the press conference, a WSWS reporter asked a high-level Ocasio-Cortez staffer, “What does she think the tax rate on the top income bracket should be?” He said he could not answer that question, because “She’s just focused on getting candidates with a similar program elected right now.”

In other words, Ocasio-Cortez can’t even commit to an explicit policy of raising taxes on the wealthiest section of society. In the spectrum of traditional American politics, this places her “democratic socialism” somewhere on the left wing of the 1960s-era Republican Party. Her inability to make any statement in opposition to war likewise put her to the right of both major Democratic nominees in the 1968 presidential primaries, who ran on an anti-war program.

The events make clear the political function of the Democratic Socialists of America. Far from creating a politically independent socialist movement, the DSA functions as an adjunct of the Democratic Party, providing candidates whose programs are largely indistinguishable from the rest of the party and are compatible with the agenda of the “CIA Democrats.”

The political role of Ocasio-Cortez and a slew of similar, DSA-backed candidates is to put a “left-wing,” “progressive,” youth-oriented, and multicultural gloss on a right-wing, pro-war party.

August 2, 2018 Posted by | Deception, Economics, Militarism, Progressive Hypocrite, Timeless or most popular | , , | Leave a comment

US Senators Introduce Sanctions Bill, Targeting Russia’s Sovereign Debt, Energy

Sputnik – 5 02.08.2018

New legislation introduced in the US Senate would require Secretary of State Mike Pompeo to determine whether Russia should be designated as a state sponsor of terrorism.

A bipartisan group of US senators on Thursday introduced a new package of punitive measures aimed at Russia. A proposed bill includes new sanctions against Russia’s political figures, restrictions on energy investments and limitations connected with uranium imports.

The harshest part of the new bill calls for the sanctioning of Russian sovereign debt.

Six US Senators said in a press release that the legislation “will increase economic, political, and diplomatic pressure on the Russian Federation in response to Russia’s continued interference in our elections, malign influence in Syria, aggression in Crimea, and other activities.”

According to Republican Senator Lindsey Graham, “the current sanctions regime has failed to deter Russia from meddling in the upcoming 2018 mid-term elections.”

“Our goal is to change the status quo and impose crushing sanctions and other measures against Putin’s Russia until he ceases and desists meddling in the US electoral process, halts cyberattacks on US infrastructure, removes Russia from Ukraine, and ceases efforts to create chaos in Syria,” he added.

Congress passed the Countering America’s Adversaries Through Sanctions Act (CAATSA) in July 2017 in response to allegations that Russia sought to influence the 2016 US presidential election. The Trump administration has been widely criticized for not doing enough in response to Moscow’s alleged activities in 2016; however, the White House claimed otherwise, saying that Trump has been tougher on Russia than any previous administration.

Relations between Russia and the United States rapidly deteriorated following the crisis in Ukraine in 2014. Washington introduced several rounds of anti-Russia sanctions after Crimea’s reunification with Russia and the latter’s alleged involvement in the ongoing Ukraine conflict. Russia has refuted all the accusations and issued retaliatory economic restrictions.

August 2, 2018 Posted by | Economics, Russophobia | , | Leave a comment

Trump Duped by Saudis on Iran Oil Sanctions – Tehran Official

Sputnik – 01.08.2018

President Trump’s offer of “no preconditions” talks with Iran’s comes as a surprise break from months of escalating rhetoric in the wake of his walkout from the landmark Iran nuclear deal.

US President Donald Trump has apparently been hoodwinked by Saudi Arabia into believing that the kingdom will be able to make up for a projected drop in Iranian oil exports after the US sanctions take effect in November, Iran’s Press TV reported citing the head of the country’s OPEC governor.

“It seems President Trump has been taken hostage by Saudi Arabia and a few producers when they claimed they can replace 2.5 million barrels per day of Iranian exports, encouraging him to take action against Iran,” Hossein Kazempour Ardebili said.

US Back and Forth on Iran Oil Trade

The White House said last month that Saudi Arabia’s King Salman had promised Trump to raise oil production and that the kingdom had two million barrels per day of spare capacity to boost output to offset a decline Iranian oil supplies.

Iran insists that President Trump’s hope that certain oil producers can fill the gap created as a result of cutting off Iranian oil supplies is based on a “miscalculation.”

Late last month, a senior US State Department official said that countries buying Iranian oil should bring their Iranian crude imports down to zero by the time Washington re-imposes sanctions against the Islamic Republic’s banking and petroleum sectors.

Washington later backed off a bit with Secretary of State Mike Pompeo saying in July that the United States might grant waivers to countries seeking relief from sanctions the US has threatened to impose.

Trump’s U-Turn on Iran

On Monday, President Trump said he would be willing to meet his Iranian counterpart, Hassan Rouhani without preconditions to discuss how to improve ties, but Tehran flatly turned down Trump’s offer dismissing it as worthless and “a humiliation” after he acted to re-impose sanctions on Tehran following the withdrawal from the 2015 landmark nuclear deal.

“Sanctions and pressures are the exact opposite of dialogue,” Iran’s Foreign Ministry spokesman Bahram Qassemi said on Tuesday.

Trump’s overture towards Iran came a week after he threatened the country with “consequences the likes of which few throughout history have ever suffered before,” in an all caps tweet.

On May 8, President Donald Trump said he was withdrawing the US from the 2015 nuclear agreement with Tehran and promised to impose the “highest level” of sanctions on the country’s energy, petrochemical and financial sectors despite objections from Europe as well as Russia and China — the other parties to the deal, known as the Joint Comprehensive Plan of Action (JCPOA).

August 1, 2018 Posted by | Economics | , , | Leave a comment

Trump threatens Turkey with sanctions. What if he’s serious?

By M K Bhadrakumar | Indian Punchline | July 27, 2018

The frequency with which US President Donald Trump holds out threats to other countries is such that he is no longer being taken seriously. The list of countries threatened by Trump so far includes North Korea, Germany, Canada, China, Venezuela, Pakistan, Syria, Iran and Turkey.

In all fairness, Trump makes no distinction between enemies, adversaries, friends or allies. Turkey, a NATO ally, holds a record of sorts as the country most threatened by the Trump administration. In separate tweets on Thursday, Trump and Vice-President Mike Pence gave an ultimatum to Turkey that unless Andrew Brunson, an American evangelical pastor of a small Protestant church in western Turkey, is released from detention immediately, Ankara should be “prepared to face the consequences” in the form of “significant sanctions.”

For the benefit of the uninitiated, Brunson who has been living in Turkey for 23 years was arrested in the aftermath of the failed 2016 coup attempt to overthrow Erdogan, charged with spying and involvement in the failed coup. The Turkish government had probably hoped for a tradeoff – Brunson in exchange for the Islamist preacher Fetullah Gulen who is living in Pennsylvania whom Ankara regards as having masterminded the 2016 coup attempt to overthrow Erdogan. Ankara has been pressing Gulen’s extradition and Washington has been stonewalling. It’s a complicated case history, since Gulen has had links in the past with the CIA.

Turkey has shrugged off the latest threat from Trump and Pence. However, for Trump, Christian groups form a core constituency politically, and taking a tough stance on the high-profile Brunson case has endeared him to those groups. Dr. Ronnie Floyd, former president of the Southern Baptist Convention, recently made the following remark in praise of the White House effort: “I thank God we have an administration that cherishes the freedom of religion as our founders hoped we would.”

Trump’s latest threat puts Erdogan in a fix because releasing Brunson without a reciprocal move on Gulen’s extradition means a loss of face. Erdogan is acutely conscious of his strongman-image. He must be wondering whether Trump is serious about the ultimatum on Brunson’s release. Brinkmanship comes naturally to Trump. Indeed, with Trump one really doesn’t know what happens next.

But Erdogan can be more than a match for Trump in the ‘art of the deal’. At a meeting today with Russian President Vladimir Putin on the sidelines of the BRICS summit in South Africa, Erdogan added disdainfully that Trump’s real grouse in giving such an ultimatum yesterday could be that Turkey has drawn close to Russia in the recent times. That is a spin, of course. But then, Erdogan is also hoping to extract a big concession from Putin – deferment of the planned military operation to liberate the northwestern Syrian province of Idlib on the Turkish border from Ankara’s proxy groups. Turkey is keen to retain Idlib as its zone of influence.

Does Putin feel impressed that US-Turkish ties are deteriorating? There are no easy answers here. Nonetheless, Erdogan sees no harm in playing Trump against Putin. After all, who knows, Putin may hold back on the assault to liberate Idlib…

Yet, the chances are that this time around, Trump probably intends to carry out his ultimatum to impose sanctions on Turkey. The point is, US patience with Turkey seems to be wearing thin. Turkey is no longer a ‘swing’ state in the US’ Middle East strategies, given the poor state of Turkish-Israeli relations, Erdogan’s ‘pivot to Russia’ and the overall trust deficit in Turkish-American relationship. Erdogan snubbed the US threat of sanctions and upheld his decision to purchase S-400 missile defence system from Russia. Last week, Erdogan bluntly rejected the demarche by Washington that Turkey should cut back its oil imports from Iran.

July 29, 2018 Posted by | Economics, Militarism | , , , , , , , | Leave a comment

Graham, Menendez team up for bipartisan anti-Russia bill

RT | July 24, 2018

Senators Lindsey Graham (R-South Carolina) and Bob Menendez (D-New Jersey) are working on a draft law that would impose sanctions on Russian sovereign debt and demand Senate approval for US quitting NATO, among other things.

The two senators announced on Tuesday they will be introducing the new sanctions law “to ensure the maximum impact on the Kremlin’s campaign against our democracy and the rules-based international order.”

The US must make it clear it will “not waver in our rejection of [Russian President Vladimir Putin’s] effort to erode western democracy as a strategic imperative for Russia’s future,” Graham and Menendez said.

Although the bill is still being drafted, Graham and Menendez said it would include increased sanctions on Russian energy and financial sectors, “oligarchs and parastatal entities” and on sovereign debt as well as sanctions against “cyber actors in Russia.”

It will also establish a National Center to Respond to Russian Threats and a sanctions coordinator office at the State Department, demand reports on implementing the Countering America’s Adversaries Through Sanctions Act (CAATSA), and authorize financial aid to “bolster democratic institutions across Europe to defend against Russian interference.”

Last, but not least, the bill would impose a Senate approval requirement for US withdrawal from NATO.

Graham is an outspoken foreign policy hawk and long-time wingman of the Russia-obsessed Senator John McCain (R-Arizona). Last week, he called for the World Cup soccer ball, presented as a gift to President Donald Trump by his Russian counterpart at the summit in Helsinki, Finland to be examined for surveillance devices.

As the ranking member on the Senate Foreign Relations Committee, Menendez is a powerful voice among the Democrats, who continue blaming Russia for the outcome of the 2016 US presidential election.

It is unclear how much support the Graham-Menendez bill will get in the Senate. However, CAATSA was approved 98-2 last year.

Just last week, the Senate voted 98-0 on a nonbinding resolution expressing the sense that the “United States should refuse to make available any current or former diplomat, civil servant, political appointee, law enforcement official or member of the Armed Forces of the United States for questioning by the government or Vladimir Putin,” in response to false reports that former US ambassador to Russia Michael McFaul would be “handed over” to Moscow.

July 24, 2018 Posted by | Economics, Russophobia | , , , , , | Leave a comment