France moves to legalize warrantless data surveillance
RT | March 19, 2015
In effort to boost its intelligence gathering, France is pushing for a law to allow authorities to spy on the digital and mobile communications of anyone linked to a “terrorist” enquiry without any judicial authorization.
The government presented the draft law to parliament on Thursday.
“Facing an increasing jihadist threat, we have to further enhance the effectiveness of the surveillance against terrorists,” Prime Minister Manuel Valls said at a news conference two months after 17 people died in a series of terrorist attacks in Paris.
“Today, one of the two people who arrived in Syria has been detected before his departure, so we have to … tighten the net of surveillance of radicalized and dangerous individuals.”
Valls said the text of the draft provided the intelligence services the means enough to fight terrorism, yet respecting individual freedoms – a view, not supported by many human rights organizations and lawyers.
The draft law would give the intelligence services the right to perform “security interceptions” of e-mails and phone conversations, to install radio beacons in a suspect’s cars, as well as microphones and cameras in their home. It could also be able to track what a suspect types on a computer keyboard with the use of special software, and also force internet service providers to hand over data to the security services.
However the prime minister underlined that the draft “is not a French-style Patriot Act,” referring to the anti-terrorism laws introduced in the US after the 9/11 tragedy in 2001 that strengthened security controls. The future law only legitimizes the actions, already common among the intelligence services, so Valls added that “There will be no more grey zone,” as cited by Reuters.
Human rights watchdogs and lawyers have slammed the project as “devastating” for individual freedom. The Paris Bar Association also expressed their disapproval over the “text made without any prior coordination with the judiciary.”
Nils Muiznieks, human rights commissioner of the Council of Europe, said on Thursday, “I am concerned about the strict security approach that characterizes the discussions and the text of the legislation aimed at intensifying the fight against terrorism.”
Amnesty International stated that it “is concerned that several of these measures may pave the way for violations of international and regional human rights standards that are binding on France, in particular those regarding the rights to freedom of expression and to private life.”
In January, following the attacks in Paris where 17 people were killed, Manuel Valls revealed plans to boost anti-terrorism strategies. The prime minister announced that France will employ 2,680 extra anti-terror operatives with a €425 million increase in funding.
French comedian sentenced for ‘defending terrorism’ in Facebook remark
By Brandon Martinez | Non-Aligned Media | March 18, 2015
The popular French comedian Dieudonne has been found guilty by a French court of ‘defending terrorism,’ making the comic one of dozens convicted of the Orwellian speech offence since the Charlie Hebdo shooting.
The charges stem from a Facebook comment Dieudonne made in the aftermath of the shooting, saying “I feel like I am Charlie Coulibaly,” a play on the ludicrous catch phrase “I am Charlie.”
Haaretz reports that the Paris court sentenced Dieudonne to a suspended sentence of two months in jail.
The French state has been criticized for its blatant double standards as it relates to free speech. Government ministers voiced support for Charlie Hebdo’s right to publish anti-Muslim cartoons, but concurrently issue orders for the arrest of people critical of Jews and Israel.
France’s President Manuel Valls is said to be under Jewish influence. Valls says he is “eternally linked” with Israel because his wife is Jewish.
Copyright 2015 Non-Aligned Media
Interview With French Dissident Artist Zéon
By Brandon Martinez | Non-Aligned Movement | March 14, 2015
Zéon (pictured above, far left) is a French cartoonist, illustrator and painter. He is 31 years old and lives in Paris. He publishes some comic strip albums, and is running a group of dissident French cartoonists blacklisted by the mainstream press. He together with other artists produce comic books such as “L’Almanach pour tous“.
Brandon Martinez of Non-Aligned Media conducted an exclusive interview with Zéon who was recently arrested and charged with a ‘hate crime’ in France for an anti-Zionist graphic he designed in 2009.
Brandon Martinez: How long have you been doing politically-themed artwork?
Zéon: I began my first Zeon cartoons in 2007.
BM: When did you become aware of the Zionist issue and its relevance to France?
Zéon: In 2003, when the French humorist Dieudonné was banned from official media for a sketch he did about Israel.
BM: You were recently arrested for the crime of “offending Israel” with some of your artwork. What is the status of this case and what exactly are they charging you with?

Zéon: The judge charged me with “provocation leading to racial and religious discrimination by offensive words, in writtings, pictures or electronic communication means”, for a cartoon I did of a stabbed Palestinian child with an Israel map shaped knife. I drew it in 2009 at the time of the Gaza massacre.
BM: Many are enraged by the hypocrisy of the French government who on the one hand champion free expression for Charlie Hebdo’s anti-Muslim cartoonists, but on the other hand mercilessly persecute dissidents who critique Israel or Jews (yourself included). Is this double standard widely recognized by the French public or are people unaware of it?
Zéon: A good part of the people know it, mostly in the youth of today, mainly in the working classes.
BM: After the Charlie Hebdo shooting, we’ve seen the French regime enact stiff laws making it basically illegal to question the government’s neocon foreign policy. Will this have an impact on artists such as yourself?
Zéon: Yes, sure! After the Charlie Hebdo shooting, a lot of people were charged with the ‘defending terrorism’ law, including a young child of 8 years!
BM: What’s the feeling in France with regards to the Charlie Hebdo affair? Many are saying that it was staged or at the very least allowed to happen. What’s your opinion on this?
Zéon: There’s an emotional wave who stay in the public debate for the moment, but it can’t last forever and the rational thinking will shortly come back… “You can fool some people sometimes, but you can’t fool all the people all the time!” About the Charlie Hebdo shooting, I’m not a specialist, but my opinion is that these kinds of terrorist acts are most of the time supervised and controlled by the secret services. They’re the only ones who have the means and the logistics to bring these operations to fruition. There are many examples, like the September 11 attacks or the Toulouse and Montauban shootings… They infiltate radical groups, detect and use the most fanatical members to do violence. I think we’re in this kind of situation with the Charlie Hebdo affair.
BM: We saw the great march of the hypocrites shortly after the shooting, featuring some of the world’s worst war criminals, including Netanyahu. Are people in France not disgusted at how the shooting has been used by politicians to curtail freedom as well as push forward more war in the Middle East on behalf of Israel?
Zéon: Yes, everyday more and more people are waking up, fighting against this kind of manipulation. That’s a big problem for the François Hollande regime. They’re trying by all means to bring us back to the unique and automatic way of thinking, “la pensée unique”, they want us to believe everything the official media says, and finally manage us like sheep.
BM: What’s your association, if any, with Alain Soral’s Egalite Reconciliation group?
Zéon: I work regularly with them and their publishing house “Kontre Kulture”. For example, we’ll bring out in a few days a little cartoon book: “Je ne suis pas Charlie… Et j’t’emmerde!” (“I’m not Charlie… And go to hell!”) to respond with humor to this oligarchy who want us to choose between two camps, the “Charlies” or the “terrorists”.
BM: Where can people find your artwork and how can they support you?
Zéon: You can find my artwork on the internet or in my web blog: https://zeondessinateur.wordpress.com To support me, you can take a look at my comic strip “Yacht People” that I’ve done with Dieudonné et Alain Soral, unfortunately it’s only in french for the moment… But we are working on a 3D cartoon film which will be translated into English and Spanish.
Nearly 100 jailed in France for ‘defending terrorism’ and other speech crimes
By Brandon Martinez | Non-Aligned Media | March 7, 2015
Since the Charlie Hebdo attack, which bore many hallmarks of a false-flag operation, nearly 100 people have been jailed in France for speech deemed to fall under the rubric of “defending terrorism.” Immediately after the attack, the French government passed draconian anti-terror laws which proscribed certain forms of speech that doesn’t suit the Paris regime’s neocon agenda. Among those arrested for “defending terrorism” have been children (an 8-year-old boy), alcoholics and mentally disabled people.
Many have pointed out the sheer hypocrisy of the French government which, in response to the murder of a dozen Charlie Hebdo cartoonists, declared itself a defender of “free speech.” French President Hollande led the ‘free speech’ march alongside a gaggle of hypocrite heads of state from dozens of countries which themselves have repressive anti-free speech laws.
Shortly after the Charlie Hebdo incident, the French government arrested wildly popular comedian Dieudonne for one sentence he wrote on Facebook: “I feel like I am Charlie Coulibaly.” The comic has faced dozens of charges in the past few years relating to his satirizing of Jews and Israel. Another Frenchman, dissident writer Alain Soral, has similarly been harassed by the French government for publishing material deemed offensive to the Zionists. He is currently involved in multiple court battles which aim to convict him of ‘hate speech’ offences.
The ultimate irony of the Charlie Hebdo fiasco was demonstrated on March 3, 2015, when a French artist, Zeon, was arrested and charged under ‘hate crime’ legislation due to his anti-Zionist, anti-Israeli depictions. The French state champions the anti-Muslim cartoons of Charlie Hebdo, whilst concurrently hunting down and prosecuting even the mildest critics of Israel or Jews.
Former French foreign minister, Roland Dumas, confirmed what many suspect is a Zionist-controlled regime in Paris. Dumas told a French television channel that France’s prime minister Manuel Valls is “under Jewish influence.”
As is the rest of the French establishment, who dutifully follow the dictates of France’s reprehensible Zionist lobby.
Copyright 2015 Non-Aligned Media
French PM decries MPs for meeting Assad
Press TV – February 26, 2015
France’s Prime Minister Manuel Valls has slammed a move by three French lawmakers to meet with Syrian President Bashar al-Assad.
“I want to condemn this initiative with the greatest strength,” Valls said on Thursday.
“For parliamentarians to go without warning to meet a butcher…. I think it was a moral failing,” he said.
A French Parliamentary delegation headed by French Senator Jean-Pierre Vial, Chairman of the Syrian-French friendship Committee, met with Assad on Wednesday.
“We met Bashar al-Assad for a good hour. It went very well,” Jacques Myard, an MP from the opposition Union pour un Mouvement Populaire (UMP) party, also said.
The French lawmaker described the trip as “a personal mission to see what is going on, to hear [and] listen.”
According to the Syrian state television, the two sides had discussed “the state of Syrian-French relations, as well as the developments in the Arab world and Europe, especially with regard to terrorism.”
During the meeting, Assad said fighting terrorism demands real political will and belief in the fact that the outcome will be in the interest of all people while the dangers will threaten all countries.
“If this issue could be tackled based on this principle, surely we will soon witness tangible positive results,” added the president.
France cut diplomatic ties with Syria in 2012 and supports the militants in Syria, who seek the removal of Assad from power.
The US and its allies, including France, have been throwing their weight behind Takfiri ISIL militants, currently wreaking havoc on Syria and Iraq, in past years.
Reports say US military instructors trained the militants at a secret base in Jordan in 2012. According to reports, some 1,000 French nationals from a wide range of backgrounds are estimated to have left the European country to join the Takfiri militants in Iraq and Syria. Some 400 of them are thought to be currently operating on the ground, while almost 50 were killed.
French Media Documents Israeli Reporter’s Fraudulent Paris Walk on Muslim “Wild Side”
By Richard Silverstein | Tikun Olam | February 18, 2015
Though Israeli “journalist” Zvika Klein’s Paris “walk on the wild side” through allegedly Muslim Paris neighborhoods aroused indignation in Israeli and western media, the story aroused skepticism in French media. The French publication Les Inrocks published an investigative piece and interview with Klein which undermined many of the claims and assumptions on which his video was based. Thanks to reader Deir Yassin for bringing the article to my attention.
As I noted in an earlier post, Klein claims he walked through Paris for “ten hours,” yet the entire video is 1:36. Almost half of the video shows him walking with no interaction with anyone (let alone being insulted). So there is less than one minute of negative interaction with Parisian Muslims.
At one point, Klein claims a woman spat at him. Yet you cannot see what he claims on the video itself. He admits in his NRG article that he also was accompanied by a “security guard” because of “tense conditions” in the city. One wonders if Klein half expected or hoped that he would be attacked by an Islamist in order to get a really good story.
In an interview with Les Inrocks, Klein claims to have walked through the 23rd Arrondissement. There are only 20 in Paris. He also claims he walked through Barbes in the Parisian suburbs when it’s in the city center. He claimed he was constantly harassed in Saracelles, but one-third of this neighborhood is itself Jewish. Apparently, Jewish residents have figured out a way to live with their Muslim neighbors.
As you read him, Klein’s fear and racist assumptions about Paris’ Muslims becomes ever clearer:
At times, it feels like wandering around Ramallah. Most of the women wore veils and hijabs and the men had distinctively Muslim faces. Arabic was heard everywhere… I would be lying if I didn’t say I was frightened.
Klein’s own video puts the lie to his claims about the dress of women he passed. In only one short section are the heads of women covered at all and no women wear hijabs in all the video footage he displays. In fact, the hijab is legally prohibited in France.
A French reader who walks in Paris daily says the last time she saw anyone wearing a hijab was months ago. As for “distinctively Muslim faces” you can see many such faces in Israel, and they are the faces of Mizrahi Jews, not Muslims. She lives in the 19th Arrondissement, a popular new neighborhood where Orthodox Jews have flocked since they were driven out of the Marais by gentrification. She sees scores of kippot each day on the streets and in the Metro. Apparently these French Jews don’t face the problems Klein found.
The Les Inrocks article also displays a tweet Klein published during Operation Protective Edge in which he quotes Meir Habib, a member of the French legislature who represents overseas French voters in Israel. Habib is also the former Likud Party spokesperson in France.
French MP Meyer Habib to http://www.nrg.co.il : “Unfortunatley, I don’t think there is a future for Jews in France”.
Read the interview Klein published with Habib in NRG. None of the quotations he included in the article have Habib saying what he claimed in the tweet. At no time does he say there is no future for Jews in France. And even if he did, Habib is little more than a Likud appointee dutifully representing the views of his master, the Israeli prime minister, who’s called publicly for all Jews to leave not just France, but all of Europe. I asked Klein to explain the discrepancy, but he hasn’t responded.
Klein’s foray into the heart of the Paris’ Muslim beast is an extension of the Robert Spencer fake “No-Go” claims about UK cities like Birmingham. The truth is that there are no No-Go neighborhoods in any European city where Jews may not walk without being in fear of their lives. If you create a provocation and act suspiciously as Klein did taking a cameraman and security guard with him into such a neighborhood, then of course you will arouse suspicion. And why wouldn’t you?
The French publication also researched Klein’s background, job history, and previous social media activity. Earlier in his career, he served in the IDF spokesman’s unit responsible for outreach to the Orthodox community. After that, he did similar work for Bnai Akiva, the Orthodox Zionist youth organization. You’ll remember that the world leader of B’nai Akiva, Rabbi Noam Perel, urged the IDF to avenge the kidnap-murder of three Israeli youth by collecting the foreskins of 300 Palestinians, just as David had offered 200 Philistines foreskins as a bride price to King Saul for his daughter. That should tell you quite a bit about Klein’s own views of “Arabs.”
Consider also this distinguished part of Klein’s journalistic oeuvre: a profile of an American motorcycle gang, Defenders of Liberty, which boasts on its Facebook page that it will demonstrate in Washington in favor of Bibi Netanyahu’s speech.
On a related subject, the leader of a distinguished French Jewish organization fighting anti-Semitism has roundly condemned Netanyahu’s pandering to French Jews. This is a translation by Walid of an article in Le Figaro :
In an interview of Alain Jakubowicz, the President of the International League Against Racism and Antisemitism by Le Figaro, he said Jews in France have a future there since they have a past and that he has asked Netanyahu to stop encouraging French Jews to return to Israel. Jakubowicz said that it was to be expected for Israeli leaders to do it but that Netanyahu’s repeated calls to do so are devastating. There is a way that this should be asked but the way Netanyahu is doing it is menacing and cataclysmic. Netanyahu conveys to French Jews that they are second class citizens that their country can no longer protect.
Jakubowicz went on to say that Netanyahu is re-asserting that Jews have dual loyalties and that they aren’t really French, which feeds anti-Semitism. He also said that the reunification of all the world’s Jews in Israel to create a village worthy of Asterix would be a disaster for the world and for the Jews. It is often thought there is an exodus of French Jews, which is an exaggeration. In fact, thousands have chosen to go to Israel and elsewhere; some of these had problems living their Judaism according to the Torah in neighbourhoods of a secular society, but this is not an exodus and it shouldn’t become one. There is a difference between what happened with Merah (Toulouse) and Charlie Hebdo; this must be deconstructed to show that it’s a matter of French citizens.
Zvika Klein might’ve done better to publish an interview and profile of Jakubowicz than gallivant around Paris needlessly provoking a harsh Muslim response.
Ukraine Denouement
By Michael Hudson | CounterPunch | February 16, 2015
The fate of Ukraine is now shifting from the military battlefield back to the arena that counts most: that of international finance. Kiev is broke, having depleted its foreign reserves on waging war that has destroyed its industrial export and coal mining capacity in the Donbass (especially vis-à-vis Russia, which normally has bought 38 percent of Ukraine’s exports). Deeply in debt (with €3 billion falling due on December 20 to Russia), Ukraine faces insolvency if the IMF and Europe do not release new loans next month to pay for new imports as well as Russian and foreign bondholders.
Finance Minister Natalia Yaresko announced on Friday that she hopes to see the money begin to flow in by early March.[1] But Ukraine must meet conditions that seem almost impossible: It must implement an honest budget and start reforming its corrupt oligarchs (who dominate in the Rada and control the bureaucracy), implement more austerity, abolish its environmental protection, and make its industry “attractive” to foreign investors to buy Ukraine’s land, natural resources, monopolies and other assets, presumably at distress prices in view of the country’s recent devastation.
Looming over the IMF loan is the military situation. On January 28, Christine Lagarde said that the IMF would not release more money as long as Ukraine remains at war. Cessation of fighting was to begin Sunday morning. But Right Sector leader Dmytro Yarosh announced that his private army and that of the Azov Battalion will ignore the Minsk agreement and fight against Russian-speakers. He remains a major force within the Rada.
How much of Ukraine’s budget will be spent on arms? Germany and France made it clear that they oppose further U.S. military adventurism in Ukraine, and also oppose NATO membership. But will Germany follow through on its threat to impose sanctions on Kiev in order to stop a renewal of the fighting? For the United States bringing Ukraine into NATO would be the coup de grace blocking creation of a Eurasian powerhouse integrating the Russian, German and other continental European economies.
The Obama administration is upping the ante and going for broke, hoping that Europe has no alternative but to keep acquiescing. But the strategy is threatening to backfire. Instead of making Russia “lose Europe,” the United States may have overplayed its hand so badly that one can now think about the opposite prospect. The Ukraine adventure could turn out to be the first step in the United States losing Europe. It may end up splitting European economic interests away from NATO, if Russia can convince the world that the epoch of armed occupation of industrial nations is a thing of the past and hence no real military threat exists – except for Europe being caught in the middle of Cold War 2.0.
For the U.S. geopolitical strategy to succeed, it would be necessary for Europe, Ukraine and Russia to act against their own potential economic self-interest. How long can they be expected to acquiesce in this sacrifice? At what point will economic interests lead to a reconsideration of old geo-military alliances and personal political loyalties?
This is becoming urgent because this is the first time the EU has been faced with such war on its own borders (if we except Yugoslavia). Where is the advantage for Europe supporting one of the world’s most corrupt oligarchies north of the Equator?
America’s Ukrainian adventure by Hillary’s appointee Victoria Nuland (kept on and applauded by John Kerry), as well as by NATO, is forcing Europe to commit itself to the United States or pursue an independent line. George Soros (whose aggressive voice is emerging as the Democratic Party’s version of Sheldon Adelson) recently urged (in the newly neocon New York Review of Books) that the West give Ukraine $50 billion to re-arm, and to think of this as a down payment on military containment of Russia. The aim is the old Brzezinski strategy: to foreclose Russian economic integration with Europe. The assumption is that economic alliances are at least potentially military, so that any power center raises the threat of economic and hence political independence.
The Financial Times quickly jumped on board for Soros’s $50 billion subsidy.[2] When President Obama promised that U.S. military aid would be only for “defensive arms,” Kiev clarified that it intended to defend Ukraine all the way to Siberia to create a “sanitary cordon.”
First Confrontation: Will the IMF Loan Agreement try to stiff Russia?
The IMF has been drawn into U.S. confrontation with Russia in its role as coordinating Kiev foreign debt refinancing. It has stated that private-sector creditors must take a haircut, given that Kiev can’t pay the money its oligarchs have either stolen or spent on war. But what of the €3 billion that Russia’s sovereign wealth fund loaned Ukraine, under London rules that prevent such haircuts? Russia has complained that Ukraine’s budget makes no provision for payment. Will the IMF accept this budget as qualifying for a bailout, treating Russia as an odious creditor? If so, what kind of legal precedent would this set for sovereign debt negotiations in years to come?
International debt settlement rules were thrown into a turmoil last year when U.S. Judge Griesa gave a highly idiosyncratic interpretation of the pari passu clause with regard to Argentina’s sovereign debts. The clause states that all creditors must be treated equally. According to Griesa (uniquely), this means that if any creditor or vulture fund refuses to participate in a debt write-down, no such agreement can be reached and the sovereign government cannot pay any bondholders anywhere in the world, regardless of what foreign jurisdiction the bonds were issued under.
This bizarre interpretation of the “equal treatment” principle has never been strictly applied. Inter-governmental debts owed to the IMF, ECB and other international agencies have not been written down in keeping with private-sector debts. Russia’s loan was carefully framed in keeping with London rules. But U.S. diplomats have been openly – indeed, noisily and publicly – discussing how to “stiff” Russia. They even have thought about claiming that Russia’s Ukraine loans (to help it pay for gas to operate its factories and heat its homes) are an odious debt, or a form of foreign aid, or subject to anti-Russian sanctions. The aim is to make Russia “less equal,” transforming the concept of pari passu as it applies to sovereign debt.
Just as hedge funds jumped into the fray to complicate Argentina’s debt settlement, so speculators are trying to make a killing off Ukraine’s financial corpse, seeing this gray area opened up. The Financial Times reports that one American investor, Michael Hasenstab, has $7 billion of Ukraine debts, along with Templeton Global Bond Fund.[3] New speculators may be buying Ukrainian debt at half its face value, hoping to collect in full if Russia is paid in full – or at least settle for a few points’ quick run-up.
The U.S.-sponsored confusion may tie up Russia’s financial claims in court for years, just as has been the case with Argentina’s debt. At stake is the IMF’s role as debt coordinator: Will it insist that Russia take the same haircut that it’s imposing on private hedge funds?
This financial conflict is becoming a new mode of warfare. Lending terms are falling subject to New Cold War geopolitics. This battlefield has been opened up by U.S. refusal in recent decades to endorse the creation of any international body empowered to judge the debt-paying capacity of countries. This makes every sovereign debt crisis a grab bag that the U.S. Treasury can step in to dominate. It endorses keeping countries in the U.S. diplomatic orbit afloat (although on a short leash), but not countries that maintain an independence from U.S. policies (e.g., Argentina and BRICS members).
Looking forward, this position threatens to fracture global finance into a U.S. currency sphere and a BRICS sphere. The U.S. has opposed creation of any international venue to adjudicate the debt-paying capacity of debtor nations. Other countries are pressing for such a venue in order to save their economies from the present anarchy. U.S. diplomats see anarchy as offering an opportunity to bring U.S. diplomacy to bear to reward friends and punish non-friends and “independents.” The resulting financial anarchy is becoming untenable in the wake of Argentina, Greece, Ireland, Spain, Portugal, Italy and other sovereign debtors whose obligations are unpayably high.
The IMF’s One-Two Punch leading to privatization sell-offs to rent extractors
IMF loans are made mainly to enable governments to pay foreign bondholders and bankers, not spend on social programs or domestic economic recovery. Sovereign debtors must agree to IMF “conditionalities” in order to get enough credit to enable bondholders to take their money and run, avoiding haircuts and leaving “taxpayers” to bear the cost of capital flight and corruption.
The first conditionality is the guiding principle of neoliberal economics: that foreign debts can be paid by squeezing out a domestic budget surplus. The myth is that austerity programs and cuts in public spending will enable governments to pay foreign-currency debts – as if there is no “transfer problem.”
The reality is that austerity causes deeper economic shrinkage and widens the budget deficit. And no matter how much domestic revenue the government squeezes out of the economy, it can pay foreign debts only in two ways: by exporting more, or by selling its public domain to foreign investors. The latter option leads to privatizing public infrastructure, replacing subsidized basic services with rent-extraction and future capital flight. So the IMF’s “solution” to the debt problem has the effect of making it worse – requiring yet further privatization sell-offs.
This is why the IMF has been wrong in its economic forecasts for Ukraine year after year, just as its prescriptions have devastated Ireland and Greece, and Third World economies from the 1970s onward. Its destructive financial policy must be seen as deliberate, not an innocent forecasting error. But the penalty for following this junk economics must be paid by the indebted victim.
In the wake of austerity, the IMF throws its Number Two punch. The debtor economy must pay by selling off whatever assets the government can find that foreign investors want. For Ukraine, investors want its rich farmland. Monsanto has been leasing its land and would like to buy. But Ukraine has a law against alienating its farmland and agricultural land to foreigners. The IMF no doubt will insist on repeal of this law, along with Ukraine’s dismantling of public regulations against foreign investment.
International finance as war
The Ukraine-IMF debt negotiation shows why finance has become the preferred mode of geopolitical warfare. Its objectives are the same as war: appropriation of land, raw materials (Ukraine’s gas rights in the Black Sea) and infrastructure (for rent-extracting opportunities) as well as the purchase of banks.
The IMF has begun to look like an office situated in the Pentagon, renting a branch office on Wall Street from Democratic Party headquarters, with the rent paid by Soros. His funds are drawing up a list of assets that he and his colleagues would like to buy from Ukrainian oligarchs and the government they control. The buyout payments for partnership with the oligarchs will not stay in Ukraine, but will be moved quickly to London, Switzerland and New York. The Ukrainian economy will lose the national patrimony with which it emerged from the Soviet Union in 1991, still deeply in debt (mainly to its own oligarchs operating out of offshore banking centers).
Where does this leave European relations with the United States and NATO?
The two futures
A generation ago the logical future for Ukraine and other post-Soviet states promised to be an integration into the German and other West European economies. This seemingly natural complementarity would see the West modernize Russian and other post-Soviet industry and agriculture (and construction as well) to create a self-sufficient and prosperous Eurasian regional power. Foreign Minister Lavrov recently voiced Russia’s hope at the Munich Security Conference for a common Eurasian Union with the European Union extending from Lisbon to Vladivostok. German and other European policy looked Eastward to invest its savings in the post-Soviet states.
This hope was anathema to U.S. neocons, who retain British Victorian geopolitics opposing the creation of any economic power center in Eurasia. That was Britain’s nightmare prior to World War I, and led it to pursue a diplomacy aimed at dividing and conquering continental Europe to prevent any dominant power or axis from emerging.
America started its Ukrainian strategy with the idea of splitting Russia off from Europe, and above all from Germany. The U.S. playbook is simple: Any economic power is potentially military; and any military power may enable other countries to pursue their own interests rather than subordinating their policy to U.S. political, economic and financial aims. Therefore, U.S. geostrategists view any foreign economic power as a potential military threat, to be countered before it can gain steam.
We can now see why the EU/IMF austerity plan that Yanukovich rejected made it clear why the United States sponsored last February’s coup in Kiev. The austerity that was called for, the removal of consumer subsidies and dismantling of public services would have led to an anti-West reaction turning Ukraine strongly back toward Russia. The Maidan coup sought to prevent this by making a war scar separating Western Ukraine from the East, leaving the country seemingly no choice but to turn West and lose its infrastructure to the privatizers and neo-rentiers.
But the U.S. plan may lead Europe to seek an economic bridge to Russia and the BRICS, away from the U.S. orbit. That is the diplomatic risk when a great power forces other nations to choose one side or the other.
The silence from Hillary
Having appointed Valery Nuland as a holdover from the Cheney administration, Secretary of State Hillary Clinton joined the hawks by likening Putin to Hitler. Meanwhile, Soros’s $10 million on donations to the Democratic Party makes him one of its largest donors. The party thus seems set to throw down the gauntlet with Europe over the shape of future geopolitical diplomacy, pressing for a New Cold War.
Hillary’s silence suggests that she knows how unpopular her neocon policy is with voters – but how popular it is with her donors. The question is, will the Republicans agree to not avoid discussing this during the 2016 presidential campaign? If so, what alternative will voters have next year?
This prospect should send shivers down Europe’s back. There are reports that Putin told Merkel and Holland in Minsk last week that Western Europe has two choices. On the one hand, it and Russia can create a prosperous economic zone based on Russia’s raw materials and European technology. Or, Europe can back NATO’s expansion and draw Russia into war that will wipe it out.
German officials have discussed bringing sanctions against Ukraine, not Russia, if it renews the ethnic warfare in its evident attempt to draw Russia in. Could Obama’s neocon strategy backfire, and lose Europe? Will future American historians talk of who lost Europe rather than who lost Russia?
Michael Hudson’s book summarizing his economic theories, “The Bubble and Beyond,” is now available in a new edition with two bonus chapters on Amazon. His latest book is Finance Capitalism and Its Discontents. He is a contributor to Hopeless: Barack Obama and the Politics of Illusion, published by AK Press. He can be reached via mh@michael-hudson.com
Notes.
[1] Fin min hopes Ukraine will get new IMF aid in early March – Interfax, http://research.tdwaterhouse.ca/research/public/Markets/NewsArticle/1664-L5N0VN2DO-1
5:40AM ET on Friday Feb 13, 2015 by Thomson Reuters
[2] “The west needs to rescue the Ukrainian economy,” Financial Times editorial, February 12, 2015.
[3] Elaine Moore, “Contrarian US investor with $7bn of debt stands to lose most if Kiev imposes haircut,” Financial Times, February 12, 2015.
E. Ukraine leaders order ceasefire, voice amendments to constitution
RT | February 14, 2015
The eastern Ukrainian militias have stopped all military action in accordance with the Minsk peace deal. They will suppress any provocations that may be organized by Kiev forces, said Aleksandr Zakharchenko, head of Donetsk People’s Republic.
Ukrainian President Petro Poroshenko has ordered troops to cease fire at Sunday midnight local time (22:00 GMT) in line with the Thursday Minsk agreement. Ukrainian Interior Minister Arsen Avakov said on his Facebook page that “all National Guard and Interior Ministry units will halt fire at midnight.”
Meanwhile, Defense Ministry spokesman of Donetsk People’s Republic, Eduard Basurin, has ordered that all eastern Ukrainian militia units halt fighting “on the entire line of contact,” RIA Novosti reports. A similar statement has come out of the self-proclaimed Lugansk People’s Republic, saying that local militia are to stop all combat actions at midnight.
Earlier, leaders of the restive Ukrainian republics said their regions have ratified the peace deal.
The militias will stop all military action outside the territory of the Donetsk People’s Republic, Zakharchenko said. However, he said that the self-defense forces will reply to any provocative actions by the Kiev troops, including assaults and precision fire.
The DPR leader also said that rebels won’t release a large group of Ukrainian troops, who have been entrapped near the village of Debaltsevo since early February.
“Their every attempt to break out will be suppressed,” Zakharchenko is cited by RIA-Novosti news agency.
The rebels’ leader reminded that “there wasn’t a word mentioning Debaltsevo in the agreements” signed in Minsk on February 12, which means that “Ukraine simply betrayed the 5,000 people trapped in the Debaltsevo ‘cauldron’.”
Earlier, Basurin said that the Ukrainian troops near Debaltsevo won’t be shelled, but won’t be released as well, with surrender being the only option.
Zakharchenko has put his signature under a decree, which foresees the beginning of the ceasefire at 01:00 AM local time on Sunday – midnight for Kiev and 2200 GMT.
The DPR head also said that the Donetsk People’s Republic won’t grant control over its border with Russia to Ukrainian border guards: “Today an order will be issued to create the border guard service. Not a single Ukrainian soldier will enter our territory.”
Poroshenko warns of martial law
Meanwhile, Ukrainian president Petro Poroshenko has once again warned that if the Minsk agreements fail, “martial law will be implemented not only in Donetsk and Lugansk, but in the whole country”.
Moscow has expressed hopes Kiev and the rebels, as well as all the sides, which supported the Minsk peace deal, including France and Germany, “will do everything for the signed agreements to be scrupulously implemented,” the Russian Foreign Ministry said.
“Ukraine’s official representatives… as well as those of several Western countries, the US in particular, have essentially expressed solidarity with the opinion of radical nationalists in the Verkhovna Rada (Ukrainian parliament) and have began distorting the contents of the Minsk agreements,” the ministry said.
On Saturday, Poroshenko spoke to German Chancellor Angela Merkel and French President Francois Hollande on the phone, with the three heads of state stressing that all sides must fulfill the obligations they’ve taken according to Minsk agreements, first of all, those concerning the ceasefire.
The Ukrainian president also had a telephone conversation with US president Barack Obama, during which the two leaders “agreed on the further coordination of efforts in the event of an escalation” in Ukraine’s southeast.
Poroshenko and Obama “discussed the situation in Donbass and expressed concerns about the situation in Debaltsevo,” according to the Ukrainian president’s website.
Russian Foreign Minister Sergey Lavrov and his US counterpart, John Kerry, also discussed the situation in southeastern Ukraine on the phone, and stressed “the importance of strict implementation of the ceasefire regime by the conflicting sides.”
Lavrov also emphasized that the Minsk peace deal “also includes obligations by Kiev to remove the financial and economic blockade of the [Ukrainian] southeast; to provide an amnesty; to stage a constitutional reform by the end of the year and adopt legislation on the special status of Donbass,” Russia’s Foreign Ministry said on its Facebook page.
The contact group, which includes representatives from the Donetsk and Lugansk regions, held video consultations on Saturday, the Organization for Security and Co-operation in Europe (OSCE) said.
According to the OSCE, all parties agreed to take necessary measures to establish the agreed truce and de-escalation of the conflict, including in the areas of Debaltsevo and Mariupol.
The contact group will continue holding consultations on a regular basis to ensure the implementation of the Minsk agreements, a statement from the watchdog added.
Constitutional change
The Minsk agreement provides for a security zone separating the Kiev forces and the rebels, a ceasefire beginning on Sunday and a heavy weapons pullout to be completed in 14 days. The deal was signed by the contact group, which includes the leaders of the self-proclaimed Donetsk and Lugansk People’s Republics, a representative of the OSCE, Ukraine’s former president Leonid Kuchma, and the Russian ambassador to Ukraine,
A separate declaration supporting the deal was agreed upon by the so-called “Normandy Four” leaders – French President Francois Hollande, German Chancellor Angela Merkel, Russian President Vladimir Putin and Ukrainian President Petro Poroshenko, who also gathered in Belarusian capital.
In accordance with the deal, on Saturday the eastern Ukrainian republics also proposed amendments to the constitution. One of the key demands is to grant certain regions the right to define and form the structure of local governments themselves, Denis Pushilin, DPR representative at the Minsk talks, said.
The rebels also want the official status for the Russian language and other minority languages, spoken in Ukraine’s central regions, he said. Another proposed amendment foresees the decentralization of fiscal and tax systems, “up to the possibility of creating in free economic zones and other special economic regimes on certain territories,” Pushilin is cited by TASS news agency.
While the Minsk deal is hoped to secure an end to the bloody and devastating internal conflict that has taken the lives of over 5,300 people in the UN’s estimates since last April, shelling in Donetsk was reported throughout the whole of Saturday.
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