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Posts Tagged ‘Russia’

Weekly Update — Foreign Policy Fail: Biden’s Sanctions are a Windfall For Russia!

Posted by M. C. on July 8, 2022

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Is It All Up to India?

Posted by M. C. on July 7, 2022

India has stood firm in its position of not being pulled from a multipolar world into the US led unipolar world. If the US cannot use divisions with China to pull India from Russia onto its side, it may face a large and muscular competitor in the global tug of war.

antiwar.com

by Ted Snider

In the global tug of war between a US led unipolar world and a Russia-China nurtured multipolar world, whichever side India throws its massive size behind will likely prevail, or at least not be defeated.

On the one side of the rope is the US with all its political, economic and military muscle. On the other is Russia and its massive and growing strategic partner, China. In the middle is India, the second largest country in the world and a growing power.

India maintains a friendly foot in both worlds. Long a partner of the US in containing China, India long played that same role for Russia, with whom it has long been a key friend. India is a member of the US led QUAD, whose purpose is to contain and deflate China while asserting US leadership over the management of Asia. There have been times in the twenty-first century when the US plan for pressing China back down has included nurturing India’s ascent to a major world power so it could be deputized as a reliable hegemon in the region. Today, still, the key to the QUAD is bringing India over to the US side.

But India is also a long and very close partner of Russia, and its relations with China have been improving for decades. It is a member of the QUAD but has restrained that organization. It has participated in it and supported it but maintained, unlike its American, Japanese and Australian partners, that the QUAD is “not against somebody.” Though India has regional concerns about China over which it opposes it, it lacks America’s global concerns about China and may not be “against” it. India has its own concerns about its giant neighbor but does not share American concerns of containing it.

Instead, India is also a member of important international organizations in which it joins Russia and China in containing, or balancing, US hegemony. India is an important and enthusiastic member of both the BRICS and the Shanghai Cooperation Organization (SCO), whose purpose is to act as an economic and foreign policy counterweight to the US in an attempt to re-balance the US led unipolar world into a multipolar one. 

India is not only a member of BRICS, which includes Brazil and South Africa, it is also a member of the core RIC group along with Russia and China. In a recent landmark Joint Statement, Russia and China announced that they “intend to develop cooperation within the ‘Russia-India-China’ format.” India, too, has said that they would join Russia and China in discussing “further strengthening of RIC trilateral cooperation.” Russian foreign minister Sergei Lavrov has noted that part of the role of RIC is “in promoting trust and confidence between India and China.” That role is the antithesis of the US goal of exploiting divisions between India and China to bring India over to the US side.

The current template the US has imposed on the world no longer allows for neutrality.

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A MAD Heist

Posted by M. C. on July 6, 2022

The reasonable path forward, as both realists and idealists have observed, is to encourage the leaders of Ukraine and Russia to sit down and negotiate terms. Anyone who understands the logic of MAD should condemn the United States’ reckless approach of risking not only self-destruction but also the end of civilization as we know it.

https://libertarianinstitute.org/articles/a-mad-heist/

by Laurie Calhoun

Wars are fought by leaders who intend to win, one way or another, using any and all means available to them. The Cold War was a decades-long series of proxy battles between the two nuclear-armed superpowers, the Soviet Union and the United States, during which the communist and capitalist arch enemies engaged in conflict on the terrain of lesser states, to the detriment of millions of civilians living in those places. But the dissolution of the U.S.S.R. and the fall of the Berlin Wall ushered in neither a period of world peace nor a dramatically reduced U.S. military budget. Instead, U.S. foreign policy elites, emboldened by a newfound sense of impunity, suddenly realized that they could wage war and impose their will wherever and whenever they pleased. Who, after all, was going to stop them?

Despite the complete conversion of post-Soviet Russia to capitalism, the fear-driven antipathy used to promote and prolong the Cold War has been rehydrated among War Party duopolists, many of whom, perhaps addled by six years of mainstream media obsession with the Russiagate hoax, appear to have forgotten why the U.S.S.R. and the U.S.A. were enemies in the first place. Better dead than red! was the slogan which drove policymakers to attempt to stop the expansion of the Soviet empire by all means necessary. Better dead than red! concisely conveys the fervor which gave rise to both the massive development and stockpiling of nuclear warheads and the creation of NATO, the North Atlantic Treaty Organization.

The current curious quest on the part of hawks to support nonnuclear-armed Ukraine as it fends off nuclear-armed Russia reflects a failure to understand the logic of not only war but also nuclear deterrence. The most glaring problem is that if, against all indicators, Ukraine were somehow to prevail in the conventional war against Russia, it would remain an option for Putin to deploy nuclear weapons, against which Ukraine would have no defense. Given that this conflict has morphed into a quasi-proxy war, with massive U.S. funding and CIA operatives on the ground in Ukraine, any use by Russia of nuclear weapons would likely trigger the use of the same by the United States.

Thinkers as diverse as Noam Chomsky and Henry Kissinger have spoken out about the danger of allowing the Ukraine-Russia conflict to continue on, yet the propaganda-pommeled populace persists in waving its Ukrainian flags. Antiwar intellectuals such as Chomsky have often been depicted by Pentagon propagandists and their associated pundits as “unrealistic,” but Kissinger is notorious (or renowned, depending on your perspective) as the consummate Realpolitik war games player. So how are we to understand the sudden concordance of such ideologically opposed figures on the ongoing conflict between Ukraine and Russia?

Kissinger is needless to say very familiar with the strategic cogitations of competent political leaders. He knows, for example, that leaders doomed to defeat by their limited military capacities vis-à-vis their adversaries do not as a general rule wage war against them. Correlatively, when there is no effective outside restraint on a superpower military such as that of the United States, then the sort of free-for-all of mass killing constitutive of the many misadventures in the Middle East (and beyond) since 1991 may well ensue. Kissinger also recognizes that a nation in possession of nuclear arms may in fact deploy them in exceptional circumstances, just as the United States did in 1945.

It is true that in 1945 there was only one nuclear-armed nation, and decades of political theorists have made careers out of arguing that in a war between two nations armed to the hilt with nukes, there could be only a Pyrrhic victory. That was the logic of MAD, Mutually Assured Destruction, given the likely domino/ricochet effect of any first strike use of nuclear warheads. Foreign policy elites such as Kissinger found the MAD argument compelling, and throughout much of the twentieth century, the continual development of ever-more-destructive nuclear arms was construed by high-level strategists as a form of deterrence. Looking back, it seems safe to say that either the MAD approach really worked, or else the species just got lucky that no one certifiably insane ever found himself in the position to initiate what could quite easily have escalated to a catastrophic nuclear holocaust. There were, however, close calls, perhaps the most famous of which was the Cuban Missile crisis. Fortunately, cooler heads prevailed in that conflict.

Political leaders are human beings, first and foremost, who may be capricious and prickly, obstinate and vain, and these possibilities must be taken into consideration when attempting to predict their future actions. Two films which vividly underscore the human-all-too-human nature of political leaders and the consequent danger of resting the future of civilization on MAD deterrence are Stanley Kubrick’s Dr. Strangelove, or How I Learned to Stop Worrying and Love the Bomb and Sidney Lumet’s Fail Safe, both of which were released in 1964, at the height of the Cold War.

We all hope that Putin is not irrational, but as both Kissinger and Chomsky appreciate, the usual MAD premises may at some point cease serving as effective restraints in the present case. Paramount among those premises are, first, that the leader with his finger on the nuclear weapons launcher button is not suicidal (or terminally ill) and, second, that he does not believe that a purely Pyrrhic victory, culminating in the destruction of much of his own society, is acceptable—even if he himself has access to an impenetrable bunker located deep below the surface of the earth.

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The G-7 Squawks But They’ve Already Lost the War Against Russia

Posted by M. C. on July 5, 2022

By Tom Luongo

Gold Goats ‘n Guns

In desperation I expect a false flag provocation to force the Russians into a move or simply justify the Davos pulling us into their next war, i.e. another virus or chemical weapons attack this time blamed on Putin.

So, the G-7 leaders are in agreement, more war with Russia. Without actually saying exactly that, that was the main takeaway from he meeting of the most feckless leaders in the world.

They also pledged $600 billion they don’t have to fund global infrastructure projects to ‘combat China’s Belt and Road Initiative.’ One wonders where all this money and, in the case of Europe, energy is going to come from to fund all of this.

But the question I’ve had from the beginning of this obvious war of attrition the West wants to impose on Russia is the following: Do we have the stamina, in terms of real production capacity, to cash these checks our leaders are writing?

A major report from the Royal United Services Institute (RUSI), one of the oldest military think tanks in the UK emphatically said not in anyone’s wildest dreams. Alex Mercouris of The Duran did an amazing job of breaking down what RUSI thought about NATO’s ability to wage war vs. Russia’s current military tempo, days before this idea caught fire.

In short, the gulf between NATO’s annual munition production and weekly consumption by the UAF is staggeringly vast.

I told you at the outset of this war that Russia was absolutely engaged in a war of attrition against the West, hoping NATO would take the bait of a ground war in Ukraine.  I didn’t have numbers to back this up, only the inference because of what I understood about Putin and his previous maneuvers against the West.

What’s obvious to me is the neocons and neoliberals controlling the West think they can turn Ukraine into a quagmire for Putin, but what if Putin thinks he can turn Ukraine into a quagmire for them?

Russia is not capable of conquering Europe. But he doesn’t need to to defeat them. He just needs to create a version of this map:

I knew that Putin wouldn’t commit Russia to this conflict if it couldn’t sustain fighting it.  I also knew that the West would LIE OUTRAGEOUSLY about the level of corruption within the Russian society to play on the biases of marginally-informed American armchair generals. 

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Russia Humbles Experts Who Forgot the Economy Is Global

Posted by M. C. on June 29, 2022

Indeed, if we ignore that inflation is currency devaluation that can be corrected by well-timed comments from Treasury as is, we can’t ignore that what the Fed vainly presumes to take away via “rate hikes” will be made up for by global credit inflows.

By John Tamny
RealClear Markets

It’s too easily forgotten by the deep and not-so-deep in thought that production is all about the getting. Goods and services always flow. Everywhere. Without regard to embargoes and sanctions.

To be clear, if you’re producing you’re getting.

In the 19th century, England was at war with seemingly every European power of that time at varying times, but the British people still consumed European plenty as though it had all been produced in Manchester. Really, what serious non-British producer in Europe or elsewhere was going to let wars or political decrees of the sanction kind deter profitable engagement with well-heeled customers? The very notion….

Yet this very notion continues to permeate policy and economic commentary. It’s possible it’s something in the water at the New York Times, or just the people Bret Stephens is bumping into, but his commentary about Russia and Ukraine before the invasion indicated backsliding on the thought processes of this always excellent-to-read writer, and normally clear thinker.

Stephens was of the view that the U.S. could utilize banks to cut off the flow of dollars to Russia (yes, Russia is dollarized to some degree as most backwards countries are), but might be careful in doing so. Why? Because Russia could cut off flow of its energy supplies to Europe. And winter was coming….No, none of this was going to happen. The economy is global.

Let’s talk real stuff. For one, there was no way the Russians were going to sit on their energy. Not only would doing so be the same as giving up market share, but doing so would bankrupt Russia the country along with many businesses inside. The oil and gas were going to flow, period. And when market goods flow, there’s no accounting for their final destination. Put in an easily understandable way, while the U.S. has an embargo against Iran, iPhones and other U.S. plenty are still all over Iran. Get it?

It seems Stephens’s New York Times is now getting it. In a report last week, Victoria Kim, Clifford Krauss and Anton Troainovksi wrote that “When the United States and European Union moved to curtail purchases of Russian fossil fuels this year, they hoped it would help make the Russian invasion so painful for Moscow that Russian President Vladimir V. Putin would be forced to abandon it.” From there they acknowledged that such a scenario was “remote at best,” and that other countries in the closed economy that is the world economy like China and India had “swooped in to buy roughly the same volume of Russian oil that would have gone to the West.” You think? Do you think some of what’s sold to “China” and “India” hasn’t already found its way to the Europe that Putin was allegedly going to starve of oil and gas? Figure that during WWI the U.S. embargoed Germany only for U.S. trade with Scandinavian countries to soar. Coincidence? Think again. Trade with Germany never stopped if you seek a clarity.

Seriously, how did serious people gloss over the economics of this so blithely? And it wasn’t just Stephens. His former colleagues at the Wall Street Journal claimed that European countries were now going to suffer their mindless pursuit of green energy with Russia’s invasion in full swing. Oh yes, that’s right. Market actors were just going to kiss off one of the world’s biggest zones of prosperity? More realistically, markets always work around the decrees of political types.

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Why Sanctions Always Fail

Posted by M. C. on June 27, 2022

The Enemy Always Adapts.

Andrew Cockburn

 The misplaced belief in the efficacy of sanctions as a weapon may partly be traced to what is generally considered to have been their greatest triumph, the British blockade of Germany in world war 1 that supposedly starved the Germans into submission, a “very perfect instrument” in Keynes’ words.  But as the late great Norman Stone pointed out, German food shortages were almost entirely due to government mismanagement, although the blockade, as usual, provided a convenient scapegoat.

https://spoilsofwar.substack.com/p/why-sanctions-always-fail

 Early in the Ukraine war, President Biden boasted on twitter that thanks to “unprecedented” sanctions, the “Russian economy is on track to be cut in half” and the ruble had been reduced to “rubble.”  All instruments of economic warfare had been deployed against Ukraine’s invader, from the freezing of central bank reserves to sanctions on Russian cats. Today, the cats may be still at home, but the ruble is at a seven year high, Russian interest and inflation rates are headed downwards, and industrial production is ticking up. Meanwhile Russian forces steadily advance in Ukraine. 

Objective: “Hunger, Desperation, Overthrow of Government.”

         All this represents a much larger defeat for sanctions than is usual in such offensives.  In a memo on Cuban sanctions back in 1960 a state department official named Lestor Mallory described the purpose of such measures with unusual frankness (the memo was of course secret.) The aim, he wrote, was  “..to bring about hunger, desperation and overthrow of government.” Twenty years later, again cloaking honesty in classification, the CIA intelligence directorate studied the record and concluded that “economic sanctions…have not met any of their objective” and had furthermore strengthened the regime, providing Castro with “a scapegoat for all kinds of domestic problems.” That pattern has endured: hardship for the sanctioned population, as exemplified by the half-million toll on Iraqi children during the 1990s, or the ongoing mass hunger in Afghanistan, while the ruling elite escapes unscathed and diverts any possible local disaffection among the immiserated populace in the direction of the sanctioning powers.  This time around, the effect of sanctions has of course been double-edged. Not only has the Russian economy not collapsed, the sanctioneers, principally the Europeans, are themselves in an accelerating economic downslide, marked by rising inflation, in particular the catastrophic energy costs consequent on sanctions against Russian oil and gas.

Sanctions Work Just Like Bombing – Badly.

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EU Leaders Prepare for Russia Turning Off Gas Supply

Posted by M. C. on June 27, 2022

Germany is already facing a gas crisis as supplies have been reduced due to Western sanctions

by Dave DeCamp

You have to be an idiot not to have foreseen this. Which makes it a typical US foreign policy result.

Then again by the EU obeying US commands it encourages the dumb bastards to increase dependency on US taxpayer paid for “free government help”. “Sure you can have US foreign aid as long as you use the part you don’t divert to Swiss bank accounts to buy US made weapons and allow more US bases.”

Yah, that is how US foreign aid works.

antiwar.com

European leaders on Friday discussed the possibility of Russia cutting off gas to the entire bloc and asked the European Commission to come up with ways to deal with the scenario.

The EU has banned the import of Russian coal and agreed on a phased ban of Russian oil, with exemptions for Hungary. But the bloc can’t afford to ban Russian gas due to its heavy reliance on the commodity.

The Western sanctions campaign against Moscow has largely backfired on Europe as it is facing soaring energy prices, which Russia is profiting from. Germany, Europe’s largest economy, is already facing a gas crisis as Russia has somewhat reduced supply. If the situation gets worse in Germany, the next step would be rationing.

According to EU Commission President Ursula von der Leyen, Russia has cut gas supplies either wholly or partially to 12 EU member states. Moscow cut off some members entirely, including Bulgaria and Poland, over their refusal to pay for gas in rubles, a policy Russia enacted to shield its currency from sanctions and in retaliation for the US and EU targeting Russia’s use of the dollar and euro.

Earlier this month, Russia’s Gazprom reduced the flow of gas in the Nord Stream 1 pipeline, which connects Russia and Germany, by 40% due to Western sanctions. A piece of equipment needed for a repair on the pipeline is stuck in Canada due to sanctions on Russia.

Countries that have been cut off entirely by Russia, such as Bulgaria, have turned to their neighbors for help. But this winter, the EU’s gas demands will be much higher. For now, as there is a lack of any real plan, EU leaders are calling on Europeans to reduce their energy use.

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The US Government’s Plan to Partition Russia Into Small States

Posted by M. C. on June 27, 2022

The West is so deluded that Russia is not taken seriously. Even tiny, insignificant, Lithuania is not afraid of Russia. Even countries heavily dependent on Russian energy repeatedly stick their fingers into Russia’s eyes. How much more can Russia take? This is a situation very ripe for a big war.

Paul Craig Roberts

Dear Readers: Thank you for your response to last Friday’s appeal for your financial support of this website. It is reassuring. One more similar response would keep the website in comfortable compliance for now with its 501c3 requirements. So I repeat the appeal:

This website, the Institute for Political Economy, is a 501c3 tax-exempt public foundation. For it to continue to exist, public support must comprise one-third of its operating costs. Currently, this is the case. However, public support has been falling. The backbone of the website are the monthly donors. But the response to the quarterly requests are weakening. The response in September is always weak, but this June the response is weak as well.

Is this the situation — when truth is most needed, support for it is running out? Once the ruling elites control the narratives, liberty, freedom, life as Americans knew it is dead. Indeed, life itself could disappear in nuclear Armageddon.

It is increasingly difficult to tell the truth as Americans are punished for doing so. Doctors who cured Covid patients with HCQ and Ivermectin are losing their licenses for spreading “misinformation.” If you do not support those few of us who are addicted to truth, truth will die. The elite have an agenda, and your welfare is not part of it.

The US Government’s Plan to Partition Russia Into Small States

Paul Craig Roberts

Jens Stoltenberg, Washington’s NATO puppet, says “peace negotiations,” not Russian victory, will end the conflict in Ukraine. So, Stoltenberg is counting on the Kremlin, whose leaders have said they will never again trust the West, to sit down again with the West and again agree to another worthless agreement. Considering the difficulty the Kremlin has in accepting reality, I suppose it is possible.

On the other hand, perhaps someone in the Kremlin has finally read the Wolfowitz Doctrine. If not, maybe someone in the Kremlin has seen the US Government’s Commission on Security and Cooperation in Europe’s plan to break Russia up into a collection of independent small states. https://niccolo.substack.com/p/delusion

How is this to be done? Military conquest? A color revolution based on years of US financed NGOs permissively operating in Russia? Discrediting of Putin and his government?

The CSCE doesn’t say, but it has to be done as there is the need to break up Russia into smaller states for “moral and strategic” reasons.

When people whistling past the graveyard assure themselves that the Ukraine conflict won’t widen and that nuclear war is impossible because countries don’t commit suicide, they ignore the massive role of delusion that operates throughout the West that provides assurance of American hegemony. Not only is the US going to bust up Russia into small states, but also, according to the US National Security Council, “Zelensky is going to get to determine what victory looks like” and to determine “when the conditions are met to build peace.” https://www.rt.com/news/557821-kirby-us-zelensky-victory/

The war has already widened with the US and NATO countries falling under the Kremlin’s designation of combatants for supplying Ukraine with weapons and military intelligence. The war has been widened to the extent that Lithuania now prevents Russia from supplying Kaliningrad, a part of Russia, and by NATO’s intended expansion into Finland, thus greatly lengthening NATO’s presence on Russia’s borders. People can fool themselves that this is not widening the conflict, but they forget that the conflict originated in the West’s refusal to acknowledge Russia’s legitimate security concerns. Now the West has greatly expanded the area of Russian concern.

My own view, to again state it, is that the combination of Western delusion with Kremlin toleration of provocations and belief in the value of negotiations, such as the 8 years the Kremlin wasted on the Minsk Agreement, the primary cause of Russian casualties today in Ukraine, guarantees war. There can be no other outcome.

If Russia succumbs yet again to trust in negotiation and makes a deal with Ukraine, the deal will not be kept any more than was the Minsk Agreement, the US pledge not to expand NATO to Russia’s borders, and the arms limitation agreements worked out over the decades, all abandoned by Washington.

The only result of a negotiated settlement will be that once again Russia will have given its enemies more time to demonize Russia, prepare more provocations, and beef up their military capability.

As I have said, the only thing that can prevent a wide war is a strong Russian foot that gives the lie to the US Government’s belief, as recently stated by the Department of State, that Russian red lines are merely “bluster.”

The West is so deluded that Russia is not taken seriously. Even tiny, insignificant, Lithuania is not afraid of Russia. Even countries heavily dependent on Russian energy repeatedly stick their fingers into Russia’s eyes. How much more can Russia take? This is a situation very ripe for a big war.

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Russia Is Winning the Financial War

Posted by M. C. on June 24, 2022

By Alasdair Macleod

Goldmoney

The ending of the petrodollar era

https://www.goldmoney.com/research/russia-is-winning-the-financial-war

Sanctions have backfired on those described by Vladimir Putin as the unfriendly nations. It is setting in train a series of events likely to undermine the whole Western financial system, as prices rise driving interest rates higher, and economic activity shrinks. These developments alone are leading to contracting bank credit, crashing stock markets, and sharply higher bond yields.

Last week, I wrote about the impact on the banking system and the likely consequences. Russia, China, and associated nations who depend upon them for trade and economic development are now moving to protect themselves from what is emerging as a full scale systemic and fiat currency crisis for the dollar and the entire Western financial system. 

These developments are hastening the end of the petrodollar era and the dollar’s role as a reserve currency.  A central Asian replacement is planned to be a new super-currency used for cross-border payments, based on an index of a basket of commodities and currencies of the participating nations. Including currencies is a mistake, but otherwise the proposition has merit. 

This article explains why and how a properly constructed scheme would work. I demonstrate why it could act as a de facto gold standard.

Its designers intend this new trade currency to appeal to other important nations, such as Saudi Arabia, into using a commodity-linked currency for settling their trade payments, replacing the dying petrodollar. But its success could prove to be fatal for the fiat dollar and other Western currencies. With the demise of the dollar, the new super-currency can be expected to lead eventually to some national currencies adopting gold standards.

The ending of the petrodollar era

Put Ukraine to one side, it’s not the major issue. We should realise what really matters to us all is the real war, which is Russia’s attempts to banish American hegemony in Europe. While in the West we have an image of President Putin as an evil despot determined to take Ukraine back under Russian control, in a speech at St Petersburg’s International Economic Forum this week, Putin’s diagnosis of the West’s problems was more to the point than anything you will hear from our own Dear Leaders: Joe, Boris, Emmanuel, Olaf, et al. It is worth citing relevant extracts from the official English translation of Putin’s speech to highlight his economic understanding of the pickle we in the West have got ourselves into:

“Surging inflation in product and commodity markets had become a fact of life long before the events of this year. The world has been driven into this situation, little by little, by many years of irresponsible macroeconomic policies pursued by the G7 countries, including uncontrolled emission and accumulation of unsecured debt. These processes intensified with the onset of the coronavirus pandemic in 2020, when supply and demand for goods and services drastically fell on a global scale…

“Because they could not or would not devise any other recipes, the governments of the leading Western economies simply accelerated their money-printing machines. Such a simple way to make up for unprecedented budget deficits…

“I have already cited this figure: over the past two years, the money supply in the United States has grown by more than 38 percent. Previously, a similar rise took decades, but now it grew by 38 percent or 5.9 trillion dollars in two years. By comparison, only a few countries have a bigger gross domestic product. The EU’s money supply has also increased dramatically over this period. It grew by about 20 percent, or 2.5 trillion euros.

“Lately, I have been hearing more and more about the so-called – please excuse me, I really would not like to do this here, even mention my own name in this regard, but I cannot help it – we all hear about the so-called ‘Putin inflation’ in the West. When I see this, I wonder who they expect would buy this nonsense – people who cannot read or write, maybe. Anyone literate enough to read would understand what is actually happening.

“The rising prices, accelerating inflation, shortages of food and fuel, petrol, and problems in the energy sector are the result of system-wide errors the current US administration and European bureaucracy have made in their economic policies. That is where the reasons are, and only there.”[i]

Putin shows that he has at least a superficial understanding of where the West has erred with its neo-Keynesian monetary and economic policies. While some of the economic and monetary elements in his address can be criticised, Putin’s grasp of these subjects puts him head and shoulders above his opposite numbers in the G7.

It is from this disadvantage that the US is trying to impose dollar hegemony on Russian interests in the financial and currency war. We must consider the geopolitics of the matter. 

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Billionaire Explains Why US Sanctions Against Russia Have Backfired

Posted by M. C. on June 23, 2022

They are pushing countries away from American investments, according to Ray Dalio

RT News

“I can already tell you with certainty that the West is also suffering from the sanctions. Other countries are increasingly shedding US government bonds because they fear that they could end up like Russia. This is shifting the balance of power around the world,” the investor argued.

https://www.rt.com/business/557607-ray-dalio-russia-sanctions-backfire-us/

Washington’s sanctions against Moscow are forcing other countries to cut their investments in the US for fear of becoming the next target, billionaire hedge fund manager Ray Dalio has said in an interview with German newspaper Der Spiegel.

When asked about anti-Russia sanctions, the founder of the world’s largest hedge fund Bridgewater Associates said the measures are failing, but there are no other options available to Washington.

Sanctions are the only weapon the US can use. So far, the decline in Russia’s gross domestic product has been around 15%. This is bearable for the population. Putin will only have trouble staying in power if the economy collapses more, say by up to 40%,” Dalio said.

He argued that while failing to achieve their direct goal of limiting Russia’s ability to fight in Ukraine, sanctions are also harming the US.

I can already tell you with certainty that the West is also suffering from the sanctions. Other countries are increasingly shedding US government bonds because they fear that they could end up like Russia. This is shifting the balance of power around the world,” the investor argued.

Dalio expects the Russia-Ukraine conflict to bring dramatic changes for the entire world.

The whole thing is reminiscent of the years 1938 and 1939, when the world was on the verge of World War II: two world powers are facing each other and are supported by different allies. How India behaves will be decisive. The country could stand by Russia’s economy if the West boycotts Moscow. In any case, the times of a globalized world with minimal trade barriers and free flow of capital are over,” he said.

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