US visa move resembles logic of color revolutionists, says Russia
Press TV – August 21, 2017
Foreign Minister Sergei Lavrov has censured a US decision to reduce its visa services in Russia, saying the measure brings to mind the logic of the masterminds of “color revolutions.”
“The first impression is that the American authors of these decisions have come up with another attempt to stir up discontent among Russian citizens about the actions of the Russian authorities,” Lavrov said at a news conference in Moscow on Monday. “It’s a well known logic … this is the logic of those who organize color revolutions.”
The top Russian diplomat made the remarks after the US embassy announced that it was suspending all “non-immigrant visa operations” in Russia as of August 23 and that it would also cancel all scheduled appointments for visa applicants in retaliation for the Russia-imposed restrictions on its staff.
Lavrov further said Moscow would first examine the measures adopted by the US embassy in Russia before making a decision on retaliatory steps, promising not to direct its anger at ordinary Americans.
“As for our response, as I have already said, it is necessary to study in detail the decisions that the Americans have announced today. We will see,” he noted. “I can say only one thing – we won’t take it out on American citizens.”
Earlier this month, Russian President Vladimir Putin ordered the US diplomatic mission in Moscow to cut 755 diplomats and staff by September 1, heightening tensions between the two countries after the US Congress approved sanctions against Russia over alleged meddling in the 2016 US presidential election and Crimea’s reunification with Russia in 2014.
Russia had already dismissed allegations of Moscow’s interference in the US election and the Ukrainian conflict over Crimea.
The US and its allies in Europe imposed several rounds of economic sanctions on Russia after the Black Sea peninsula of Crimea decided to join Russia while accusations have been leveled against Russia over its alleged support for pro-Russia forces engaged in fighting with the Kiev government in eastern Ukraine.
Beware the “The Cultural Civil War” Narrative: You’re Being Played
By Charles Hugh Smith | of two minds | August 21, 2017
There is always common ground for those who dare to seek it.
Remember the “Russians hacked our election!” hysteria–or have you already forgotten? That entire narrative collapsed under a deluge of factual evidence that the Democratic National Committee (DNC) data release was an insider job, and a compelling lack of evidence of any other Russian hacking.
That failed narrative has now been replaced with a new mass hysteria: “a new cultural Civil War is inevitable.” In this narrative, America has succumbed to us-versus-them divisions divided by all-or-nothing ideological bright lines.
Snap out of it, America: you’re being played, just as you were played by the absurd “Russia hacked the election” mania.
The core strategy here is the destruction of any common ground: once the delusion that there is no common ground left has been cemented by relentless mainstream and social media hysteria/ propaganda, the populace fragments into echo-chamber fiefdoms of ideological conformity that are easily manipulated by the political-financial power structure.
Once the populace has been fragmented into ideologically divisive camps, controlling the resulting mass of warring mobs is easy. Rather than recognize the commonality of their powerlessness and impoverishment, the fragmented fiefdoms are easily turned on each other:
From the point of view of each fragmented fiefdom, , the problem isn’t structural, i.e. the dominance of extreme concentrations of wealth and power; the “problem” is the other cultural-ideological fiefdoms.
Once the masses accept this false division and the destruction of common ground, their power to reverse the extreme concentrations of wealth and power is shattered. The play is as old as civilization itself: conjure up extremists (paying them when necessary), goad the formation of opposing extremists, then convince the populace that these extremists have been normalized, i.e. your friends and neighbors already belong to one or the other.
This normalization then sets up the relentless demands to choose a side– the classic techniques of misdirection and false choice.
Just as you’re sold a triple-bacon cheeseburger or a hybrid auto, you’re being sold a completely fabricated cultural civil war. There have always been extremists on every edge of the ideological spectrum, just as there have always been religious zealots.
In a healthy society, these fringe pools of self-reinforcing fanaticism are given their proper place: they are outliers, representing self-reinforcing black holes of confirmation bias of a few.
In times of social, political and financial stress, such groups pop up like mushrooms. In times of media saturation, a relative handful can gain enormous exposure and importance because the danger they pose sells adverts and attracts eyeballs/viewers.
Add a little fragmentation, virtue-signaling, demands for ideological conformity and voila, you get a deeply fragmented and deranged populace that is incapable of recognizing the dire straits it is in or recognizing the structural sources of its impoverishment and powerlessness.
In other words, you get an easily malleable populace at false war with itself.
There is always common ground for those who dare to seek it. The Powers That Be are blowing up the bridges as fast as they can, whipping up fear and hatred of the Other, fanning the flames of extremism and claiming extremists are now normalized and everywhere.
All of this is false. Would you buy an entirely manipulated cultural civil war if it was advertised as such? If not, then don’t buy into the false (but oh so useful to the ruling elites) narrative of an “inevitable cultural Civil War.”
The Lies on Afghanistan
By Matthew Hoh | CounterPunch | August 21, 2017
There has never been progress by the U.S. military in Afghanistan, unless you are asking the U.S. military contractors or the Afghan drug barons, of whom an extremely large share are our allies in the Afghan government, militias and security forces, there has only been suffering and destruction. American politicians, pundits and generals will speak about “progress” made by the 70,000 American troops put into Afghanistan by President Obama beginning in 2009, along with an additional 30,000 European troops and 100,000 private contractors, however the hard and awful true reality is that the war in Afghanistan has only escalated since 2009, never stabilizing or deescalating; the Taliban has increased in strength by tens of thousands, despite tens of thousands of casualties and prisoners; and American and Afghan casualties have continued to grow every year of the conflict, with U.S. casualties declining only when U.S. forces began to withdraw in mass numbers from parts of Afghanistan in 2011, while Afghan security forces and civilians have experienced record casualties every year since those numbers began to be kept by the UN.
Similarly, any progress in reconstructing or developing Afghanistan has been found to be near [non] existent despite the more than $100 billion spent by the United States on such efforts by the Special Inspector General for Afghan Reconstruction (SIGAR). $100 billion, by the way, is more money than was spent on the Marshall Plan when that post-WWII reconstruction plan is put into inflation adjusted dollars. Oft repeated claims, such as millions of Afghan school girls going to school, millions of Afghans having access to improved health care and Afghan life expectancy dramatically increasing, and the construction of an Afghan job building economy have been exposed as nothing more than public relations lies. Often displayed as modern Potemkin Villages to visiting journalists and congressional delegations and utilized to justify continued budgets for the Pentagon and USAID, and, so, to allow for more killing, like America’s reconstruction program in Iraq, the reconstruction program in Afghanistan has proven to be a failure and its supposed achievements shown to be virtually non-existent, as documented by multiple investigations by SIGAR, as well as by investigators and researchers from organizations such as the UN, EU, IMF, World Bank, etc.
Tonight, the American people will hear again the great lie about the progress the American military once made in Afghanistan after “the Afghan Surge”, just as we often hear the lie about how the American military had “won” in Iraq. In Iraq it was a political compromise that brought about a cessation of hostilities for a few short years and it was the collapse of the political balance that had been struck that led to the return to the violence of the last several years. In Afghanistan there has never even been an attempt at such a political solution and all the Afghan people have seen in the last eight years, every year, has been a worsening of the violence.
Americans will also hear tonight how the U.S. military has done great things for the Afghan people. You would be hard pressed to find many Afghans outside of the incredibly corrupt and illegitimate government, a better definition of a kleptocracy you will not find, that the U.S. keeps in power with its soldiers and $35 billion a year, who would agree with the statements of the American politicians, the American generals and the pundits, the latter of which are mostly funded, directly or indirectly, by the military companies. It is important to remember that for three straight elections in Afghanistan the United States government has supported shockingly fraudulent elections, allowing American soldiers to kill and die while presidential and parliamentary elections were brazenly stolen. It is also important to remember that many members of the Afghan government are themselves warlords and drug barons, many of them guilty of some of the worst human rights abuses and war crimes, the same abuses of which the Taliban are guilty, while the current Ghani government, and the previous Karzai government, have allowed egregious crimes to continue against women, including laws that allow men to legally rape their wives.
Whatever President Trump announces tonight about Afghanistan, a decision he teased on Twitter, as if the announcement were a new retail product launch or television show episode, as opposed to the somber and painful reality of war, we can be assured the lies about American progress in Afghanistan will continue, the lies about America’s commitment to human rights and democratic values will continue, the profits of the military companies and drug barons will also continue, and of course the suffering of the Afghan people will surely continue.
Matthew Hoh is a member of the advisory boards of Expose Facts, Veterans For Peace and World Beyond War. In 2009 he resigned his position with the State Department in Afghanistan in protest of the escalation of the Afghan War by the Obama Administration. He previously had been in Iraq with a State Department team and with the U.S. Marines. He is a Senior Fellow with the Center for International Policy.
Why Damascus Claims on US, UK Supplies of Chemicals to Syria ‘Cannot Be Ignored’
Sputnik – August 21, 2107
Damascus has accused the US and Britain of supplying toxic materials to Syria. According to political analyst Vladimir Shapovalov, the allegations are very serious and should be investigated.
The claims that the United States and United Kingdom supplied militant groups in Syria with toxic agents could be verified by a UN mission, said Vasily Nebenzya, Russia’s Ambassador to the United Nations.
Earlier this week, Syrian Deputy Foreign Minister Faisal Mekdad accused the US and the UK of supplying toxic agents to terrorists based on evidence found in Aleppo and a Damascus suburb.
These allegations are putting Washington and London in a situation where they cannot refuse an international probe into the matter, according to Vladimir Shapovalov, deputy director of the Center for Historical and Political Studies at the Moscow State Pedagogical Institute.
“Russia’s stance in this situation is absolutely reasonable. Moreover, I think that the US and Britain should endorse it. If Washington and London block such an investigation the international community may have the impression that the two countries are responsible [for the deliveries of toxic agents to Syria] and trying to hide the facts,” Shapovalov told Radio Sputnik.
According to Shapovalov, the information revealed by the Syrian government is very serious and concerning and must be thoroughly investigated regardless of the current political climate.
“Any activities related to poisonous materials must be closely monitored and investigated. This should not be a one-sided game. It is necessary to consider any possibility of such deliveries, no matter where they can come from. As for the information revealed by Damascus, it is a very solid piece of evidence,” Shapovalov pointed out.
According to the Syrian Foreign Ministry, the toxic materials discovered in Aleppo and a Damascus suburb were produced by one British company and two American companies.”The special equipment found consisted of hand grenades and rounds for grenade launchers equipped with CS and CN toxic agents. … The chemical munitions were produced by the Federal Laboratories company in the US. The toxic agents were produced by Chemring Defence (UK) and NonLethal Technologies (US),” Mekdad said Wednesday.
He also underscored that in accordance with Article 5 of the Convention on the Prohibition of the Development, Production, Stockpiling and Use of Chemical Weapons, the use of toxic agents is permitted only to combat riots. It is prohibited to use them in warfare.
Commenting on the allegations, the Pentagon said that its assistance to Syrian opposition groups “does not now, nor has it ever, included chemical agents.”
In turn, a spokesperson for the British Foreign Office told Sputnik that the UK refutes any claims to the alleged supply of lethal equipment, including chemical weapons, to any of the conflicting sides in Syria.Several incidents involving toxic materials have been reported during the course of the Syrian conflict. The deadliest one took place in the Damascus suburb of Ghouta in August 2013. According to varying estimates, it claimed from several hundred up to 1,500 lives. On April 4, the National Coalition for Syrian Revolutionary and Opposition Forces announced that several dozen people had been killed by a suspected chemical attack in Khan Shaykhun in Syria’s province of Idlib. The US blamed Damascus for the incident without providing evidence to back this theory up. Syrian authorities refuted any involvement in the incident.
In June, the Organization for the Prohibition of Chemical Weapons (OPCW) said that its fact-finding mission confirmed that man-made chemical sarin was used in the Khan Shaikhoun attack, but did not determine who was responsible.Following the Ghouta attack, Syria joined the Convention on the Prohibition of Chemical Weapons. This was the result of an agreement between Russia and the US on the destruction of chemical weapons in the country under the control of the OPCW and it prevented a US military intervention in Syria. In January 2016, the OPCW reported that all chemical weapons in Syria had been destroyed.
US Wages Cyberwar Abroad Under Cover of “Activism”
By Joseph Thomas – New Eastern Outlook – 20.08.2017
The threat of cyberterrorism has competed for centre stage in American politics with fears of “Russian hackers” disrupting everything from elections to electrical grids. And yet as US policymakers wield threats of cyberterrorism to promote a long and growing list of countermeasures and pretexts for expanding its conflict with Moscow, it is simultaneously promoting very real cyberterrorism globally.
Worst of all, it does so under the guise of “activism.”
The Carnegie Endowment for International Peace recently published a paper titled, “Growing Cyber Activism in Thailand.”
In it, readers may have expected a detailed description of how independent local activists were using information technology to inform the public, communicate with policymakers and organise themselves more efficiently.
Instead, readers would find a list of US-funded fronts posing as “nongovernmental organisations” (NGOs) engaged in subversion, including attacks carried out against Thai government websites aimed at crippling them, the dumping of private information of ordinary citizens online and coercing policymakers into adopting their foreign-funded and directed agenda.
US-Backed Cyberterrorism
The paper cites petitions created by the US-funded Thai Netizen Network on the US-based petition site, Change.org as well as distributed denial of service attacks (DDoS) aimed at crippling essential government websites, a campaign defended by US-funded Thai Netizen as being “virtual civil disobedience.”
The paper would claim (our emphasis):
The most innovative countermeasure was a series of Distributed Denial of Service (DDoS) attacks: an anonymous group, Thailand F5 Cyber Army, declared a cyberwar on the Thai government by encouraging netizens to visit listed official websites and continuously press F5 on their keyboards to refresh the pages. The goal was to overwhelm web servers and cause a temporary collapse of the websites of the Ministry of Defense, Ministry of Information and Communication Technology, Government House of Thailand, National Legislative Assembly, and Internal Security Operations Command. The group disseminated detailed instructions on the operation to its anonymous activists. It then demanded that the junta cancel its Single Gateway proposal.
Most of the attacks were successful. Activists wanted to demonstrate the government’s technological ineptitude and its lack of capacity to manage the Single Gateway. Arthit Suriyawongkul, coordinator of the Thai Netizen Network, described the campaign as virtual civil disobedience—an online version of the nonviolent resistance practiced by civil rights groups in the United States.
In another case, an activist group called Anonymous launched a #BoycottThailand campaign on Twitter and reportedly hacked government websites, snatched confidential information from official databases, and shared it online.
The Thai Netizen Network is funded by the US State Department via the National Endowment for Democracy (NED) subsidiary, Freedom House, as well as convicted financial criminal George Soros’ Open Society and a number of other foreign governments and corporate-funded foundations.
The role of a foreign-funded front coordinating efforts to undermine Thailand’s national security, including promoting cyberterrorism as “civil disobedience,” carries with it many implications. That the US is the foreign state promoting these activities in Thailand, undermines its own efforts to define and combat cyberterrorism back home.
What is Cyberterrorism?
Cyberterrorism is described on the United States Federal Bureau of Investigation’s (FBI) website as:
… the use of computer network tools to shut down critical national infrastructures (e.g., energy, transportation, government operations) or to coerce or intimidate a government or civilian population.
Attacking government websites millions of people across Thailand depend on for information and services while pilfering the personal information of thousands of ordinary citizens clearly fits the definition of not only cyberterrorism because of the political motivations involved, but also malicious criminality in general.
Unlike alleged Russian hacks which divulged emails detailing impropriety among American politicians, the information pilfered by US-backed hackers in Thailand included the personal information of millions of ordinary citizens using government services as part of their daily lives.
Bangkok Post would fill in the missing information intentionally omitted from the Carnegie Endowment paper, reporting that:
Files posted by Anonymous and examined by the Bangkok Post appear to be from the court system, as the Anonymous posters claimed.
An SQL database file of 1.1 gigabytes contains thousands of names, ID card numbers, photos, email addresses, personal phone numbers and more — all in clear text.
By dumping this information online, US-backed hackers targeted ordinary citizens, jeopardising their privacy and exposing them to criminal elements the world over involved in identity theft.
US Cyberterrorism is not “Activism”
The Carnegie Endowment paper itself was drafted by Janjira Sombatpoonsiri, assistant professor of political science at Thammasat University, Thailand. She is also cited as a member of the Carnegie Endowment’s Civic Activism Network. Not only is she an active, contributing member of Thailand’s foreign-backed opposition, she is admittedly involved in a foreign think-tank funded by foreign corporate interests.
The Carnegie Endowment includes among its sponsors in its 2016 annual report; the US government, pharmaceutical giants including Gilead, petrochemical monopolies including Chevron, British Petroleum and Shell, defence contractors including Lockheed Martin and several automakers including Ford.
Like many other episodes of extraterritorial political interference up to and including military intervention, America’s meddling in Thailand is done on behalf of corporate interests seeking to expand their respective and collective hegemony both regionally in Asia vis-a-vis Beijing, and globally. This interference is done under the cover of rights advocacy, both by the think tanks and foundations funding it and those in Thailand receiving foreign cash.
The US use of cyberterrorism in Thailand and beyond should come as no surprise. It augments already ongoing efforts by US-backed opposition in Thailand to destabilise and upend Thailand’s political order which has included armed terrorism.
Most recently, a string of bombings plagued Bangkok, including one targeting a hospital. At various junctures during Thailand’s political conflict, foreign-backed opposition has brought militants into the streets. In 2010, nearly 100 would die over the course of several weeks, culminating in citywide arson leaving areas of Thailand’s capital, Bangkok, resembling a war zone.
To see US-sponsored authors attempting to promote cyberterrorism as “activism” in Thailand also comes as no surprise. When Thailand’s opposition carries out armed terrorism, US-sponsored media and policy think tanks often attempt to spin it as well. Other forms of more traditional subversion are also regularly defended by the US and its myriad fronts posing as rights advocates as “activism.”
Understanding that it is not “activism,” but by America’s own very definition, cyberterrorism, helps disarm this malicious campaign posing as “civil disobedience” and “activism,” and allows nations like Thailand to defend themselves through enhanced technological security measure as well as legislation.
Left, You Have Been Duped

By Richard Hugus | August 20, 2017
On August 19, a week after a heavily publicized clash over a statue of Robert E. Lee in Charlottesville, Virginia, an estimated 8,000 people converged on Boston Common to protest a speaking event organized by a group calling itself the Boston Free Speech Movement. Who are the Boston Free Speech Movement and what do they stand for? We’ll never know because antifascists, leftists, anti-racists, and progressives of Boston prevented them from even speaking. Some might say this was a good thing — no one wants to hear from bigots (if that’s who they were) — but in fact the left in all its self-righteousness was duped into an assault on the 1st Amendment to the US Constitution, which guarantees the right of free speech, for everyone. The left have been the pawns of much more powerful forces who, if they aren’t organizing these news events and provocations outright, are certainly happy to see precedents set for publicly shutting down free speech by the use of force. First it will be the speech of fascists, then it will be the speech of anybody the authorities don’t like, including leftists.
Suddenly we are being confronted with organizations who claim to know what is or is not appropriate for the rest of us to hear. Now that sides have been established — one which can decide what is and isn’t acceptable speech, and another which is forbidden to speak on pain of attack, all that remains is for the powerful to make sure their narrative is the one that’s allowed. Isn’t this fascism? Aren’t people who claim to be anti-fascist actually doing what classic fascists do?
It’s not a coincidence that just prior to these speaking events being shut down, Google, Inc. asserted its right to decide what is and is not a legitimate news source. At the same time the US Congress is considering legislation that would make it illegal for US citizens to support boycott, divestment, or sanctions against Israel. Not surprisingly, the pro-Israel Anti Defamation League (ADL) has been brought on by Google to advise them on which news sources are legitimate and which are not. Google now has such a monopoly on information on the Internet that it is in a position to bury unapproved news sources forever. The ADL will therefore be able to effectively censor any negative news about what Israel is doing in Palestine and the middle east, just as AIPAC, through its ownership of the US Congress, will be able to censor free speech of American citizens when it comes to, once again, Israel.
In the ‘50s the ADL monitored “pinkos” for the House UnAmerican Activities Committee. In the ‘90s ADL monitored activists working to end apartheid in South Africa, in the 2000s the ADL began monitoring Arab American organizations and mosques. Today the ADL monitors pro-Palestine groups on college campuses. In each case the ADL has gone after “extremism and hate speech” in the US, as defined by Israel.
One wonders, why does Israel, a foreign country, have such a say on what people in the US can and can’t talk about?
There is no way to censor speech without a point of view or agenda. The agenda is usually dictated by whoever has power. Thus censorship serves those in power. When we take part in it, we serve the power.
People are apparently upset about an upsurge of Nazism. Why weren’t they in the streets when neocon Victoria Nuland and the US State Department organized a coup in Ukraine with the overt assistance of neo-Nazis? Why were Nazis okay during Obama’s presidency but not during Trump’s?
Where was the outrage when Hillary Clinton and the US State Department attacked and destroyed Libya? The liberal left considered this a “humanitarian intervention,” just as it did when the US decimated Yugoslavia.
Why is it that after six years of siege and murder committed by US proxy forces in Syria, the only national demonstration that could be mustered in Washington was on the issue of private remarks Trump once made about grabbing women — the famous “pussy hat” demonstration?
Why is it that the liars in the mainstream press could get away with false stories of chemical attacks in Syria being carried out by the Syrian government when it was obvious that the attacks were carried out as false flags by US proxy forces? Why are Syrians still being bombed and killed every day by US “coalition” forces with no protest?
Why is it that Iraq is no longer a concern, after 26 years of genocidal assault by Uncle Sam, with efforts now being made to balkanize Iraq through support for “Kurdistan”? Why are US troops still there? Why are they still in Afghanistan? Where are the masses taking to the streets to shout down the liars making these policies?
Why is it the business of the US to interfere in Venezuela’s internal affairs, even to the point of military intervention? Has Venezuela harmed the US in some way? Has the left swallowed yet again the lie that the US is concerned about human rights in another country?
Why is it that Palestinians have been forgotten, as Israel, the US’s closest ally, transparently conducts genocide against them, year after year, so that today Israel can talk openly of forced transfer of the entire Arab population of Palestine. Isn’t terror also being committed when Israeli settlers routinely ram their cars into Palestinians in the street, or is it just terror when this happens in Europe?
Why is it that the US supports a state for Jewish people only that necessarily discriminates again non-Jewish Christians and Muslims? Isn’t discrimination on the basis of religion a hate crime? Isn’t the ADL in a conflict of interests when it claims to be an authority on hate crimes while representing such a state? Has the left ever repudiated its long record of blocking for Israel and Israel’s crimes?
Why is it that the virtuous left has nothing better to do than face off with a few obvious provocateurs with their over-the-top nazi slogans while the US — their country, in their name — is actively supporting Saudi Arabia in its destruction of a practically defenseless Yemen?
Where has the left been in its opposition to US government and media “hate speech” and war-baiting against Russia, China, and Iran? Is World War III not a problem? Did something lead leftists to believe that life on earth was not important right now?
Is the US threat of a nuclear attack on North Korea a side issue — something to be dealt with only after facing off with the Klan?
What about the murder of millions of Arabs and Muslims since 9-11 on the basis of a false story about who did 9-11? Surely there is a case to be made here for discrimination on the basis of religion, if not serial mass murder, based on a pretext which itself was an open crime for all the world to see. Why does the left consider discussion of this crime unimportant and passé?
That the left has mobilized to stomp on a handful of people in Charlottesville and Boston only proves its impotence. It’s like the man who has been frustrated at work all day who comes home and kicks his dog.
The worst of it all is that both the left and right have been suckered into a division which will use up all their energy and get plenty of attention from the press while the real crimes and the real criminals roll steadily along, laughing at the stupidity of everyone involved and the ease with which they were manipulated.
A Venezuelan Tanker Is Stranded Off The Louisiana Coast
By Tyler Durden | Zero Hedge | August 17, 2017
A tanker loaded with 1 million barrels of Venezuelan heavy crude has been stranded for over a month off the coast of Louisiana, not because it can’t sail but as a result of Venezuela’s imploding economy, and its inability to obtain a bank letter of credit to deliver its expensive cargo. It’s the latest sign of the financial troubles plaguing state-run oil company PDVSA in the aftermath of the latest US sanctions against the Maduro regime, and evidence that banks are slashing exposure to Venezuela across the board as the Latin American nation spirals into chaos.
As Reuters reports, following the recently imposed US sanctions, a large number of banks have closed accounts linked to officials of the OPEC member and have refused to provide correspondent bank services or trade in government bonds. The stranded tanker is one direct casualty of this escalation.
The tanker Karvounis, a Suezmax carrying Venezuelan diluted crude oil, has been anchored at South West Pass off the coast of Louisiana for about a month, according to Marinetraffic data.
For the past 30 days, PBF Energy, the intended recipient of the cargo, has been trying unsuccessfully to find a bank willing to provide a letter of credit to discharge the oil, according to two trading and shipping sources.
The tanker was loaded with oil in late June at the Caribbean island of St. Eustatius where PDVSA rents storage tanks, and has been waiting for authorization to discharge since early July, according to Reuters. It is here that the delivery process was halted as crude sellers request letters of credit from customers that guarantee payment within 30 days after a cargo is delivered.
While the documents must be issued by a bank and received before the parties agree to discharge, this time this is impossible as the correspondent bank has decided to avoid interacting with PDVSA and running afoul of the latest US sanctions. It was not immediately clear which banks have denied letters of credit and if other U.S. refiners are affected.
In an ironic coincidence, these days the state energy company of Venezuela, PDVSA, is almost as much Venezuelan as it is Russian and Chinese. Chinese and Russian entities currently take about 40% of all PDVSA’s exports as repayment for over $60 billion in loans to Venezuela and the company in the last decade, as we reported last year and as Reuters recently updated. This has left U.S. refiners among the few remaining cash buyers. Meanwhile, as a result of these ongoing historical barter deals exchanging oil for refined products and loans, PDVSA’s cash flow has collapsed even as the company’s creditors resort to increasingly more aggressive measures to collect: just this April, a Russian state company took a Venezuelan oil tanker hostage in hopes of recouping $30 million in unpaid debt.
The first indication that the financial noose is tightening on the Caracas regime came earlier this month when Credit Suisse barred operations involving certain Venezuelan bonds and is now requiring that business with President Nicolas Maduro’s government and related entities undergo a reputation risk review. In a while publicized move, this past May Goldman Sachs purchased $2.8 billion of Venezuelan debt bonds at steep discount, a move criticized by the Venezuelan opposition and other banks.
While PDVSA owns the cargo, the actual tanker was chartered by Trafigura:
Since last year, the trading firm has been marketing an increasing volume of Venezuelan oil received from companies such as Russia’s Rosneft, which lift and then resell PDVSA’s barrels to monetize credits extended to Venezuela, according to traders and PDVSA’s internal documents.
Some barrels are offered on the open market, others are supplied to typical PDVSA’s customers including U.S refiners.
Meanwhile, even before this latest sanctions-induced L/C crisis, Venezuela’s oil exports to the US were already in freefall: PDVSA and its JVs exported only 638,325bpd to the US in July, more than a fifth, or 22% less, than the same month of 2016, according to Reuters Trade Flows data.
As for the recipient, PBF received just three cargoes for a total of 1.58 million barrels last month, the lowest figure since February. Other U.S. refineries such as Phillips 66 did not receive any cargo. The US refiner and PDVSA have a long-term supply agreement for Venezuelan oil signed in 2015 when PBF bought the 189,000-bpd Chalmette refinery from PDVSA and ExxonMobil Corp.
Earlier in the month, PBF’s Chalmette refinery received half a million barrels of Venezuelan crude on the tanker Ridgebury Sally B. This second delivery got stuck on tanker Karvounis.
It is likely that soon virtually all Venezuelan cargos bound for the US will share a similar “stranded” fate as one bank after another cease providing L/C backstops to the Venezuelan company, ultimately suffocating Maduro’s regime which is in dire need of dollars to keep the army on its side and prevent a revolution. As for how high the price of oil rises as Venezuela’s oil production is slowly taken offline, it remains to be seen. Three weeks ago, Barclays calculated that a “sharper and longer disruption” to Venezuela oil production could raise oil prices by at least $5-7/barrell. Such a disruption appears to now be forming.
‘More wars in the pipeline: Bannon exit bodes ill for US aggression opponents’
RT | August 19, 2017
With the firing of anti-globalist Steve Bannon, neo-conservatives and hawks may take complete control of US foreign policy, says investigative journalist Rick Sterling, adding that it’s not a good sign when hawkish Senator John McCain is smiling.
US President Donald Trump’s chief strategist, Steve Bannon – viewed as a key figure in Team Trump – has left the White House.
After the firing, Bannon, 63, resumed his role as head of conservative website Breitbart News, and announced that he was “going to war” for Trump.
“If there’s any confusion out there, let me clear it up: I’m leaving the White House and going to war for Trump against his opponents – on Capitol Hill, in the media, and in corporate America,” he told Bloomberg News Friday.
The departure is just the latest in a series of shake-ups since Trump took office.
What will Bannon’s firing mean for the Trump administration and how it could affect policymaking? RT discussed with investigative journalist Rick Sterling.
“Bannon was an anti-globalist strongly opposed by hawkish senators like John McCain… While liberals and neo-conservatives may be cheering, it may bode ill for those who oppose US aggression and think the US should not be the world’s policeman,” he said.
The now-former White House chief strategist was in favor of a trade war with China and “ratcheting up economic contention,” but he was against conflict with North Korea, Sterling said.
Just a couple of days before his exit, Bannon said in an interview that there is no military solution to the North Korean problem. The comment was rebuffed by both Secretary of State Rex Tillerson and Defense Secretary Jim Mattis.
Bannon’s stance was also in “sharp contrast with National Security Advisor H.R. McMaster, who said that North Korea poses a direct military threat,” Sterling said. “The very dangerous thing right now is that neo-conservatives and the hawks take complete control of US foreign policy… we are going to see a lot more war coming down the pipeline.”
The Democratic National Committee (DNC) reacted to the decision by saying in a statement: “there is one less white supremacist in the White House.”
Commenting on the matter, Sterling opined that “they’ve manipulated the situation where Breitbart and Steve Bannon were allied with right-wing nationalist forces within the US.”
Ironically, he went on to say, “these forces are much more resistant to US wars of aggression.”
“So, we’ve got key issues coming up now. In the coming period, we’re going to have decisions on whether the US is going to escalate the troop involvement and the intervention in Afghanistan; we’ve got the situation with North Korea; the situation with Syria is coming to a head. Steve Bannon, as an anti-globalist, was arguing against the US escalating military intervention and now the situation seems to be controlled by the generals in the White House, and it’s not a good sign when hawkish Senator John McCain is smiling and very happy,” Sterling said.
