Category Archives: the USA

Status of the Wall of Enmity

To maintain its world power, the US has built a Wall of Enmity between the East and the West. With the fall of the USSR, the Wall was not abandoned but extended into the Russian territories of the former Soviet Union. The Baltic Republics are firm members of the Wall, despite the fact that they are in firm super depression because of severe Russophobia. Poland, Hungary, Romania, Bulgaria, Czechia, Slovakia, and the new republics of former Yugoslavia: Croatia, Slovenia, Monte Negro. Serbia, so far, have refused to join NATO. Promises not to expand NATO were made by the US to Russia. Apparently, promises were broken. In Europe, NATO is shaking but not breaking down;  it is the Key Stone of the Wall of Enmity.

In the Middle East, the Wall of Enmity is breaking down. Turkey, a key NATO member, is confronting the US on all fronts: Jerusalem, Palestine, Syria, Iraq, and Iran. Turkey has not forgotten the failed coup attempt of July, 2016. Turkey is suspicious of the US. The US is treading gently because Turkey is the main fresh water supplier to Israel. The US does not want to lose Turkey as it lost Iran.

In South Asia, Pakistan is definitely drifting away from the Wall of Enmity. Trade with its key partner, China, is in Yuan. Intelligence is no longer shared with the US and it may block US access to Afghanistan. The US is trying to woo India but India is very fickle; it is not likely that India would join the Wall of Enmity.

In South East Asia and Oceania, only distant Australia, New Zealand, and some island states of Oceania are firm members of the Wall of Enmity. All littoral states of South East Asia do not want to antagonize China.

The North East Asia Wall of Enmity is pivotal to US power in Asia and the Far East. Under no circumstances is the US willing to lose it. The only way to maintain its position in North East Asia is by stoking tensions with North Korea. South Korea under President Moon is trying to eliminate confrontations with North Korea. The Winter Olympic Games are possibly a blessing in disguise. No war during the Olympic Games was an ancient Greek tradition. Talks between the Koreas that will exclude the US may lead to something significant which the US will not like. Bluntly speaking, South Korea may refuse to be subservient to the US.

If South Korea refuses to be subservient to the US, will Japan be far behind? Not likely.

 

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Turkey, the Geo-Strategic Pivot of History

To paraphrase Napoleon: “Geography is destiny; control Constantinople, control the world.” This was true in the time of Napoleon, and it is even more true today.

Turkey was one of the most faithful allies of the US. It helped the US in the Korean War, 1950-53. A NATO member since 1950. To whatever the US wanted, Turkey said yes. Turkish labour helped rebuild post war West Germany. But Turkey was taken for granted by the West, essentially a colonial entity in possession of the most geo-strategic real estate in the world…

How things change. Today, the US and Turkey are in confrontation mode. Until July 15, 2016, Turkey embraced the US- Israeli view of Syria; Assad must go, because Assad would not buckle. There was a confrontation with Russia. A Russian plane was shot over Syria by a Turkish jet. A Russian ambassador was assassinated in Turkey. Trade sanctions were imposed on Turkey, and Russian tourists boycotted it. The US was hoping for an irrevocable confrontation between Russia and Turkey. A coup d’état against Erdogan, if successful, would make this confrontation with Russia permanent. This confrontation would re-enforce the Wall of Enmity which the US is building from the Baltic, the Ukraine, Turkey, Syria, Iraq, India, yes India through the Straits of Malacca to the Philippines, Japan, and South Korea. If the coup d’etat had been successful, Russia would have been eliminated from Middle East involvement.

But the coup did not succeed, possibly with Russian help. Erdogan apologized to Putin, and relations normalized. Slowly, rapprochement between Turkey and Russia became friendly. And then suddenly, three countries: Iran, Turkey, and Russia synchronized their Middle East policy especially in regards to Syria and Lebanon and Hezbollah. So, now, instead of Russian disarray, one has US-Israeli-Saudi disarray.

How will things play out? World events cannot be taken in isolation. The Wall of Enmity has been breached in two places: the Ukraine and Turkey. The Wall of Enmity in North East Asia is stable, because the tension is high.

The situation in the Ukraine is different because of the German situation. Germany is entering a period of uncertainty. Whoever and under what circumstances the next German government is formed, the German people will demand independence, denuclearization, and the end of US military occupation. The Germans are increasingly yearning for an independent foreign policy. The US will try to prevent a German exodus by increasing tensions and the chances of war in the Ukraine and blaming Russia as the aggressor.

Turkey is the key geostrategic pivot of History. The Turks are a proud, nationalistic people. Under Erdogan, they have had the first truly independent foreign policy since the time of Kemal Ataturk. They will not buckle to Western pressure. They do not care for the EU. By being independent and moving closer to Eurasia, Turkey will help reduce or even eliminate Western influence in the Middle East. Turkey will withdraw from NATO very slowly and the US will not push. If Turkey withdraws, NATO unravels. That is the one thing the US does not want.

Another attempt at a coup d’état cannot be excluded.

 

 

 

 

Very Short Observations IV

The knowledge is intentionally withheld that the EU nations use dollars, not euros, in trade among themselves, as well as with other nations. It is amazing and true. So, the dollar is not only the petro-dollar, but the official currency of international trade. The most important world trade is in oil, and until now, it has been traded in dollars. Most international debt is also denominated in dollars. The dollar is used as the chief instrument of enforcing sanctions against nations who do not follow US policy. The dollar is the Thunder Bolt of Zeus that I mentioned in my earlier posts from 2015-16.

But the exceptionality of this currency which makes the US the exceptional nation may be coming to an end. China will be trading oil in the yuan, convertible to gold. Oil nations will be able to sell their oil for the yuan on the Shanghai Exchange, avoiding dollars. The yuan will be freely exchangeable for gold. Many oil nations will flock to the “Petro-Yuan”. This new development is of great geo-economic significance. Venezuela, for instance, would be able to sell its heavy crude from Lake Maracaibo for yuan. How the US will react to this challenge remains to be revealed. Will the US react aggressively to China?

A commodity that is necessary for all life on Earth is water. Mother Nature provides us water free of charge. Fortunate are those nations or people who have an abundance of it. Those nations who feel they are powerful enough are willing to go to war to get it. The countries of the Mediterranean basin that have an abundance of water are the new republics of the former Yugoslavia. Other countries are Turkey, Lebanon, and possibly Syria because of the two rivers that flow through North East Syria from Turkey: the Euphrates and the Tigris, which touches Syria as it leaves Turkey and enters Iraq.

Countries that are water poor: Libya and Israel. Libya was intentionally destroyed in 2011, killing and sodomizing its leader, Gaddafi, in order to plunder its resources, especially its oil. Gaddafi wanted a gold dinar for all of Africa. Israel, a water-poor yet highly advanced country, whose water needs are increasing daily, needs a source of free water. Presently, Israel imports about 50% of its fresh water from Turkey. If a confrontation develops between Israel and Turkey, in the future, Turkey could shut off its water exports to Israel. De-salination is an inadequate substitute; it is also very expensive.

And so Lebanon beckons. To get the waters of Lebanon, war is inevitable. Hezbollah, whether one likes it or not, is the guardian of Lebanese independence vis a vis Israel, so war is inevitable. Israel experienced Hezbollah in 2006 war. Hezbollah is no joke.

Saudi Arabia is not a country in the normal sense of the word, because it is owned by 50,000 to 100,000 royals who take most of its oil wealth for their own personal use. But the Saudis are now in trouble. They’re losing their war in Yemen. Oil revenues are down. A confrontation with Iran looms in the distance. Internal dissension exists. The situation in the Saudi Arabia is precarious. They have pushed themselves into a Zugzwang situation. An alliance with Israel and the dismissal of the Lebanese prime minister are possibly related. The official dogma: Hezbollah and Iran have become mortal enemies of Israel and the Saudis. Big war is inevitable for water, oil, and hegemony of the Middle East and the world. The US and NATO will side with the Saudis and Israel, unconditionally; most of the rest of the world will side with the Palestinians, Hezbollah, and Iran. Will this war turn nuclear? Possibly!

The Ukraine cannot be ignored; it is on the verge of collapse. The Ukraine’s internal and external policies are totally absurd. For example, certain nationalists want to break diplomatic relations with Russia. Also, they are buying expensive  anthracite hard coal from the US rather than cheaper and better quality coal from Russia or Donbass for its power plants; Ukrainians will be freezing this winter! Also they are trying to mpose the Ukrainian language on minorities such as Hungarians and Russians. Kiev will gamble war in order to save itself; it will not work.

Contrary to Main Stream Media propaganda, the US economy is not doing well. Both, debt and stocks are precariously high. The EU not much better; just ask the Greeks.

Truly, a very precarious time; very unique in history!

Very Short Observations III

US decertification of the Iran nuclear deal is very unwise. It has given big momentum to two movements in the world: the dollarization of the world, and, ironically, the isolation of the US, (instead of Russia). In 2014, President Obama imposed sanctions on Russia because of the Ukraine and Crimea returning to Russia of its own volition, and made the claim that Russia  would face isolation; never happened.

The US imposed severe sanctions on Iran. The EU followed. But despite these sanctions, Iran grew stronger, and is the dominant regional power, along with Turkey. Iran with Hasbollah of Lebanon and Russia is enabling Assad of Syria to win. ISIS is being defeated in Iraq and Syria; Israel is in a panic. Israel insists something must be done about Iran; will the US be induced to attack Iran?

The Ukraine is on the verge of rebellion. Misha Shalikashvilli, ex-president of Georgia and ex-governor of Odessa, is leading the charge; things remain to be seen. Ukrainians in general want to be with Russia, as well Byela Rus, Kazakhstan, and other republics of the former USSR. It is only matter of time before the armed forces join the people in the streets of Kiev and overthrow Poroshenko.

In the Middle East, a huge alliance is forming: Turkey, Iran. Iraq, Hesbollah of Lebanon, Yemen. Pakistan is drifting towards the Alliance. The Pakistani contribution to the Alliance will be nuclear. China is a strong ally of Pakistan. Turkey is definitely drifting away from the US, as is Pakistan.

It is possible that the US will lose the Middle East; only Israel will remain. The US is moving into Africa, especially former French Africa. It is rich in minerals such as uranium, gold, iron, copper, etc.; it is also rich in hydrocarbons. Losing four military personnel in Niger is no accident. The reality is that the US is involved in all of Africa. The idea is to prevent Africa from falling under the influence of China, ” the One Belt, One Road” system.

China is introducing  the “Petro-Yuan System” in the oil trade. This could be a very severe blow to dollar domination. Venezuela, Iran, Russia, others will participate in Petro-Yuan System. De-dollarization is accelerating. Many a US politician has said:” We will protect our way of life whatever it takes.” In other words, de-dollarization will not be allowed to succeed. Good reason to have a war.

Short Observations II

The predominant idea or movement of the 21st Century has been the movement away from subservience to independence.

The power that is trying to arrest this flow is the US, the status quo power. Dialectics is the enemy of status quo. Dialectic change is a historical process, and is a  threat to US hegemonic position. The US is enlarging NATO, yet NATO is falling apart. Turkey, one of the most significant nations of NATO is moving away from it and the US after the unsuccessful putsch against Erdogan in 2016. Turkey is pursuing an independent policy in the Middle East, which are contrary to the interests of Israel and the US.

The EU is also moving away from unconditional subservience to the US to independence, as recent German elections have demonstrated. Actually, Germany is moving away from remaining an occupied state to being independent. The poor showing of the Christian Democratic Union Party of Angela Merkel and the Social Democratic Party of Martin Schultz is the proof. Alternativa fur Deutschland party scored big. They came from nowhere. They are the third largest party in Germany and they want change. Big change that is an anathema to US interests. Alternative for Germany wants to follow the Bismarck policy of friendship with Russia. Will the EU follow Germany?

Middle East great changes! Alliances are shifting and changing. Overall, huge Islamic alliance is forming in the Middle East and South Asia. Lebanon, Turkey, Syria, Iraq, Iran, Pakistan, possibly Bangla Desh, Malaysia, Indonesia. At the same time that this Alliance is forming, India is drifting West. The lynch pin of this alliance will be Iran and Turkey. Just look at the geographical position of Turkey and Iran. The Saudi King is visiting Moscow. Very interesting…

Israel is in panic mode. Assad is successfully fighting ISIS. Iran is a key player in this game. Iran has strong connections with Hesbollah of Lebanon, as well as Syria, Iraq, and Yemen. Turkey, Iran, Iraq, and Syria have determined that an independent Kurdistan will fail;  Israel wants Kurdistan to succeed. Israel is instructing the US to destroy Iran, thereby assuring Israeli domination of the Middle East, and the fresh water resources which Israel critically needs. Whether the US will oblige remains to be seen.

There is an economic factor involved here as well. The Fed is pushing stocks higher. Some are predicting the DOW at 40,000 within a decade or sooner. Others are predicting total collapse. Foreigners are pouring their money into the US stock market, thereby supporting the dollar and the bond market. The Fed must support the stock market at all costs. If it fails, all hell will break loose. All three will collapse: the dollar, the bond market, and the stock market, and there will be no more free lunch for the US.

The Ukrainian situation is ‘dormant’; a low intensity war. Kiev has no choice but to do that. It must be in the game even though it is losing. Ukraine is slowly dying. Population is decreasing. Wages are decreasing. People are very angry. What is keeping the Kiev afloat are Ukrainian remittances from Russia where over 4,000,000 Ukrainians work. Kiev is selling the Ukraine on the cheap to the West. It is only question of when, not if, the Ukrainians revolt.

Africa and Latin America are two continents where natural wealth is in relative abundance and people are waking up to protect it. Epiphany is rampant in Africa and Latin America. Western corporations are milking them as in colonial times. Globalism is just another name, more modern, for colonialism. Epiphany cannot be stopped. Venezuela will not buckle. In due time, more countries will join Venezuela. That is the flow of History.

North Korea is a thorn in US foreign policy in Asia. US interest is to maintain a Wall of Enmity extending from the Baltic, Poland, Ukraine, Turkey, Syria, Iraq, Persian Gulf, India, Straits of Malacca, Philippines, Japan, all the way to South Korea. The idea is to maintain this Wall of Enmity and push it to squeeze the hell out of China, Iran, and Russia.

China has said that if the US attacks North Korea it will automatically be on the North Korean side; a Korean War II would be inevitable and the potential catastrophe would be immense. North and South Korea would be destroyed. If China got involved, then Japan, China, and, possibly, the US would be severely damaged. A Korean crisis is, and will be, lots of thunder and very little, if any, rain.,

All scenarios discussed here could end up in a big war. In my opinion, the most likely scenario would be a US attack on Iran to make the Middle East safe for Israel. All kinds of excuses would be used to justify the attack. But wars never go according to plan. It seems that Iranian strategy is to receive and not give the first blow. After that, all hell would break loose. All of the Middle East, and possibly the world, would be in flames.

The only thing that will prevent wars that may occur anywhere is the collapse of the US stock market. Foreigners would pull their money out. At least, those who would be able. That would lead to the dollar and bond market collapsing. The US would have no choice but to turn inward. We will see.

 

 

German Election Results?

Mutter Merkel did not do too well. As a senior persona and running for her 4th term , she and her CDU should have gotten at least 40% or more, so she could have formed a coalition with the Free Democratic Party as in the past; a clear majority would have been best. Germans are restless because of migrants and the stern Russophobia of her government.

The German media tried some Russian interference to discredit the AfD, but it did not work. Alternativa fur Duetschland did well, especially in former East Germany. SPD did poorly. Martin Schultz, the leader, said that the party will go into opposition. Smart move. Merkel will have to court the Free Democratic Party (right), Der Linke (left), and the Greens (Environmentalists).

SDP and AfD will be the opposition. They will want change to German economic and foreign policy. Despite being a wealthy country, Germany has 8 million people living in poverty, out of a population of 84 million. The status quo will no longer do. Even coalition partners will want change.

The Germans want change, and change they will get. Change on the migration policy, on Syria, Iran, Iraq, Afghanistan, and North Korea. The opposition will demand that sanctions against Russia be cancelled. The opposition will demand removal of nuclear weapons from the country and a Modus Vivendi with Russia. Germany will move to neutrality. France, Italy, Austria, the Czech Republic, Hungary, Greece,and Slovenia will join. Later, all of Europe will go neutral a la Switzerland. Britain will stay faithful to the US.

This massive shift will affect the policy of Africa and Latin America. The role of the dollar and the gold will be reversed. It will be very interesting.

High stock prices are a danger to the US economy

How could high stock prices be a danger to the US economy? It just can’t be so, but it is. Paradox? Not really. How could persistently rising stock prices be bad for any economy? That is not possible, because people who own stocks feel wealthy. They will spend more, consumption goes up. Firms rev up production, hire more workers, wages rise, and the virtuous cycle is established; if only this were true!

Persistently rising stock prices suck the blood out of the economy and direct financial energy into the stock market. Corporations buy their own stock with cheap borrowed money, close plants, move operations overseas and leave US cities delapidated ghost towns. Tax revenues collapse, infrastructures collapse and the US slowly turns into a third world nation. This is the dark side of persistently rising stock prices.

In rising stock oriented society, wages do not grow.  In fact, the buying power of wages actually falls. Poverty, anxiety, chronic illnesses, obesity, and violence increase.

Economists, academics, decision makers, politicians sing the same ol’ song: “The US economy is resilient!”, and they point to the rising stock market. It is not!

Another component contributing to the rising stock market are persistently low interest rates, draining savers of their deserved interest income.

It would be better if the stock market was at 5000 and the economy was humming with rising wages, job growth, universal single payer health care system, affordable quality education, massive infrastructure renewal programs, quality affordable housing, etc. but this will never happen.

It will never happen as long as the rising stock market sucks the blood out of the economy, turning the country into an economic desert with areas of oases where the 2% ownership class lives with the 5% overseer class.

It will never happen as long the Federal Reserve and US Treasury’s economic policy is to support the stock market. The stock market will continue to suck the blood out of the economy until the final collapse.

No change will occur without the final collapse.