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Lebanon urges Arab states to sanction USA: The Petroyuan beckons

Lebanon’s call to sanction the US may not be heeded all at once, but moving to the Petroyuan could be today’s version of the 1973 oil embargo.

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At an emergency meeting of the Arab League in Cairo, Lebanon’s Foreign Minister Gebran Bassil has proposed passing sanctions on the United States in retaliation for Donald Trump’s unilateral decision to recognise Jerusalem/Al-Quds as the Israeli capital.

The move has been condemned by an overwhelming majority of states and religious institutions throughout the world. The UN has also condemned the decision. 

During the meeting, Bassil who is from the Maronite Christian Free Patriotic Movement, stated,

“Pre-emptive measures (must be) taken against the decision, beginning with diplomatic measures, then political, then economic and (then) financial sanctions”.

Such a move is not without precedent. In 1973, the Organization of the Petroleum Exporting Countries decided to increase the price of oil by 70%, while cutting production levels.

The oil embargo specifically targeted countries that supported Tel Aviv during the 1973 Arab-Israeli War.

While the United States is increasingly energy self-sufficient, a rise in oil prices and/or a cutting of supplies would still negatively impact the US economy. The oil embargo of the 1970s sent shock-waves through the Dollar based financial systems as well as US stock exchanges.

While it is not thought that America’s allies in the Persian Gulf would agree to sanctions or a wider energy embargo in 2017, movement among oil producing Middle Eastern nations away from the Petrodollar and towards the Petroyuan, could have a similar effect on US markets and the Dollar itself, even if embarked upon in a situation unrelated to the matter of Jerusalem/Al-Quds.

The fact that the US Dollar is the de-facto trading currency in global energy markets, is one of the main factors in stabilising the US fiat currency. In today’s global economy, swapping the Dollar for the Chinese Yuan as a primary currency in the energy trade, could have far longer lasting effects on the US economy than the 1973 oil embargo.

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The issue of the Petroyuan has long been one discussed quietly even among US allies in the Middle East, however, now that the wider Middle East is at odds with the US in the most united sense since 1973, the Petroyuan could now become a geo-political tool as well as one used to gain monetary leverage against the Federal Reserve.

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Although the Northern bloc of the Middle East, which Gebran Bassil was essentially speaking on behalf of, would be far more eager to hit the US economically than the Saudi dominated Southern bloc, because Saudi Arabia will be dependant on Chinese investment if it seeks to realise the highly ambitious Vision 2030 project of Crown Prince Muhammad bin Salman, there exists a long-term incentive for Saudi Arabia to consider a break with the Petrodollar in order to attract more investment and more confidence from a Chinese government which already has extremely healthy relations with Riyadh.

Thus, the Petroyuan is attractive not only to China and countries like the heavily sanctioned Iran, but also countries like Saudi Arabia that require a long term relationship with China in order to diversify its economy.

Here we see an area where Saudi Arabia could act in its self-interest while also re-gaining a substantial degree of lost credibility among the wider Arab world over the issue of Palestine. What for a country like Lebanon is about its own security and about Arab dignity, for Saudi Arabia, turning towards the Petroyuan as a means of sanctions against Washington through the back door, could be a self-interested move that would allow Riyadh much needed economic leverage against the United States, while gaining at least some levels support among the wider Arab world which feels the GCC’s close relations with Washington have compromised the Palestinian cause.

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In this sense, one sees a powerful oil rich state in the Southern bloc of the Middle East, standing to gain from following the geo-political lead of a far less wealthy country in the North.

This could in the medium term, represent a wider “win-win” situation for a Middle East that is growing increasingly ill at east with America’s hegemonic role in the region.

A wider Middle East embrace of the Yuan could breathe new life into a region as a whole by preparing for the advantages of economic inter-connectivity which far outweigh the prima facie disaster of sectarian conflict. This would not only see countries like Lebanon and Saudi Arabia gain a uniquely common ground (however limited at first), but it could also only be good for peace in Palestine.

Saudi’s burgeoning relations with Israel could kill the two state solution in more ways than one

 

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Rod Rosenstein resigns from his post before President Trump can fire him

Rosenstein’s comments about secretly recording the President backfire, and resignation may throw the Mueller Russiagate probe into question.

Seraphim Hanisch

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The Washington Times broke the story that Deputy Attorney General Rod Rosenstein resigned from his post. He submitted his resignation to Chief of Staff John Kelly.  At present the breaking story says the following:

Deputy Attorney General Rod Rosenstein is out at the Department of Justice.

Axios reported that Mr. Rosenstein verbally resigned to White House Chief Of Staff John Kelly, but CNN said that he is expecting to be fired.

Sarah Isgur Flores, a Department of Justice spokeswoman, declined to comment on the reports.

Mr. Rosenstein’s departure immediately throws Special Counsel Robert Mueller’s Russian collusion probe into chaos.

Attorney General Jeff Sessions recused himself from the investigation, leaving Mr. Rosenstein in charge.

President Trump mulled firing the No. 2 at the Department of Justice over the weekend.

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This report came after Fox News reported that the Deputy AG was summoned to the White House. Fox reported a little more detail:

Deputy Attorney General Rod Rosenstein is heading to the White House expecting to be fired, sources tell Fox News, in the wake of a report that he suggested wearing a wire against President Trump and invoking the 25th Amendment to remove him from office last year.

This is a developing story, however one major factor that comes under consideration is the fate of Robert Mueller and his Russiagate investigation, which was authorized by Rosenstein. CNBC had this to say in their piece:

Deputy Attorney General Rod Rosenstein is resigning Monday, according to Axios, which cited a source familiar with the matter.

NBC News’ Pete Williams, however, reported that Rosenstein would not resign of his own accord, and that he will only depart if the White House fired him. He will refuse to resign if asked to do so, Williams added.

Rosenstein was at the White House when Williams reported this on the air. However, President Donald Trump is in New York for the United Nations General Assembly.

Bloomberg later reported that the White House accepted Rosenstein’s resignation, citing a person familiar with the matter.

Rosenstein’s expected resignation will immediately raise questions about the fate of the ongoing investigation by special counsel Robert Mueller, who is probing Russian interference in the 2016 presidential election, and possible obstruction of justice by President Donald Trump.

Rosenstein’s job security was called into question after The New York Times reported last week that the No. 2 DOJ official had discussed invoking the 25th amendment to remove Trump, and had also talked about surreptitiously recording the president.

Rosenstein oversees the special counsel investigation, and has appointed Mueller to run the Russia probe last year, after Attorney General Jeff Sessions recused himself from the case.

The special counsel’s office declined to comment on the report.

The White House did not immediately respond to CNBC’s request for comment on Axios’ report. The Justice Department did not immediately respond to CNBC’s inquiry.

Trump has repeatedly blasted Mueller’s inquiry, which also is focused on possible collusion with Russia by members of the Trump campaign.

He has called the investigation a “witch hunt,” and has repeatedly vented frustration about Sessions’ recusal, which directly led to Mueller’s appointment by Rosenstein.

Rosenstein’s expected departure comes on the heels of a guilty plea by Trump’s former campaign manager Paul Manafort to conspiracy charges related to his consulting work in Ukraine, which predates his role on the campaign.

As part of the investigation, Mueller’s team has been locked in an ongoing back-and-forth with Trump’s legal team over an in-person interview with the president.

Trump’s lawyers, including former New York Mayor Rudy Giuliani, have signaled that Trump is unwilling to sit for an interview, calling it a “perjury trap” and setting up a potential challenge for Mueller to subpoena the president.

This story is developing. Please check back for updates.

 

 

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European Council crushes Theresa May’s soft Brexit dream (Video)

The Duran – News in Review – Episode 116.

Alex Christoforou

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UK Prime Minister Theresa May hoped that the European Council was ready to see things her way, in terms of proceeding with a soft Brexit, which was essentially no Brexit at all…at least not the hard Brexit that was voted on in a democratic referendum approximately two years ago.

Much to May’s surprise, European Council President Donald Tusk delivered a death blow verdict for May’s Brexit, noting that EU leaders are in full agreement that Chequers plan for Brexit “will not work” because “it risks undermining the single market.”

Without a miracle compromise springing up come during the October summit, the UK will drift into the March 29, 2019 deadline without a deal and out of the European Union…which was initially what was voted for way back in 2016, leaving everyone asking, what the hell was May doing wasting Britain’s time and resources for two years, so as to return back to the hard Brexit terms she was charged with carrying forward after the 2016 referendum?

The Duran’s Alex Christoforou and Editor-in-Chief Alexander Mercouris discuss what was a disastrous EU summit in Salzburg for UK PM Theresa May, in what looks to be the final nail in May’s tenure as UK Prime Minister, as a hard Brexit now seems all but certain.

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Via Zerohedge

Tusk was speaking at the end of an EU summit in Salzburg, where the leaders of the 27 remaining states in the bloc were discussing Brexit. He said that while there were “positive elements” in May’s Chequers plan, a deal that puts the single market at risk cannot be accepted.

“Everybody shared the view that while there are positive elements in the Chequers proposal, the suggested framework for economic co-operation will not work, not least because it is undermining the single market,” Tusk said. He also said that he could not “exclude” the possibility that the UK could exit the EU in March with no deal.

May has been urging her European counterparts to accept her controversial Chequers plan which has split both the Conservative party and the broader UK population after it was thrashed out back in July. However, despite the painfully-slow negotiation process, which appears to have made little headway with just a few months left, the UK is set to leave the EU on March 29 2019 – with or without an exit deal.

The main sticking point that has emerged, and left May and the EU at loggerheads, has been how to avoid new checks on the Irish border. May has claimed that her proposals were the “only serious, credible” way to avoid a hard border in Northern Ireland. She said during a press conference after the Salzburg meeting that she would not accept the EU’s “backstop” plan to avoid a Northern Ireland hard border. She said the UK would shortly be bringing forward its own proposals.

May also said that there was “a lot of hard work to be done,” adding that the UK was also preparing for the eventuality of having to leave the EU without a deal. Tusk, meanwhile, said that the upcoming October summit would be the “moment of truth” for reaching a deal, and that “if the conditions are there” another summit would be held in November to “formalize” it.

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Russia makes HUGE strides in drone technology

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The US and Israel are universally recognized leaders in the development and use of unmanned aerial vehicles (UAVs) or drones. Thousands of American and Israeli UAVs are operating across the world daily.

The US military has recently successfully tested an air-to-air missile to turn its MQ-9 Reaper drone into an effective long-endurance, high-altitude surveillance unmanned spy aircraft capable of air-to-surface as well as air-to-air missions. This is a major breakthrough. It’s not a secret that Russia has been lagging behind in UAV development. Now its seems to be going to change with tangible progress made to narrow the gap.

Very few nations boast drones capable of high-altitude long endurance (HALE) missions. Russia is to enter the club of the chosen. In late 2017, the Russian Defense Ministry awarded a HALE UAV contract to the Kazan-based Simonov design bureau.

This month, Russian Zvezda military news TV channel showed a video (below) of Altair (Altius) heavy drone prototype aircraft number “03”, going through its first flight test.

Propelled by two RED A03/V12 500hp high fuel efficiency diesel engines, each producing a capacity of 500 hp on takeoff, the 5-ton heavy vehicle with a wingspan of 28.5 meters boasts a maximum altitude of 12km and a range of 10,000km at a cruising speed of 150-250km/h.

Wingspan: about 30 meters. Maximum speed: up to 950 km/h. Flight endurance: 48 hours. Payload: two tons, which allows the creation of a strike version. The vehicle is able to autonomously take off and land or be guided by an operator from the ground.

The UAV can carry the usual range of optical and thermal sensors as well as synthetic-aperture ground-surveillance radar with the resolution of .1 meter at the range of 35km and 1 meter at the range of 125km. The communications equipment allows real-time data exchange.

Russia’s UAV program currently underway includes the development of a range of large, small, and mid-sized drones. The Orion-E medium altitude long endurance (MALE) UAV was unveiled at the MAKS 2017 air show. Its developer, Kronstadt Technologies, claims it could be modified for strike missions. The one-ton drone is going through testing now. The Orion-E is capable of automatic takeoff and landing.

It can fly continuously for 24 hours, carrying a surveillance payload of up to 200 kg to include a forward looking infra-red (FLIR) turret, synthetic aperture radar and high resolution cameras. The drone can reach a maximum altitude of 7,500 m. Its range is 250 km.

The Sukhoi design bureau is currently developing the Okhotnik (Hunter) strike drone with a range of about 3,500km. The drone made its maiden flight this year. In its current capacity, it has an anti-radar coating, and will store missiles and precision-guided bombs internally to avoid radar detection.

The Kazan-based Eniks Design Bureau is working on the small T-16 weaponized aerial vehicle able to carry 6 kg of payload.

The new Russian Korsar (Corsair) tactical surveillance unmanned aerial vehicles (UAV) will be upgraded to receive an electronic warfare system. Its operational range will be increased from 150km to 250km. The drone was revealed at Victory Day military parade along with the Korsar unmanned combat helicopter version.

The rotary wing drone lacks the speed and altitude of the fixed wing variant, but has a great advantage of being able to operate without landing strips and can be sea-based. Both drones can carry guided and unguided munitions. The fixed-wing version can be armed with Ataka 9M120 missiles.

The first Russian helicopter-type unmanned aerial vehicle powered by hydrogen fuel cells was presented at the Army-2018 international forum. With the horizontal cruising speed of the drone up to 60 kph, the unmanned chopper can stay in the air at least 2.5 hours to conduct reconnaissance operations. Its payload is up to 5 kg.

Last November, the Kalashnikov Concern reported that it would start production of heavy unmanned aerial vehicles capable of carrying up to several tons of cargo and operating for several days at a time without needing to recharge.

All in all, the Russian military operate 1,900 drones on a daily basis. The multi-purpose Orlan-10 with a range of 600km has become a working horse that no military operation, including combat actions in Syria, can be conducted without. Maj. Gen. Alexander Novikov,
the head of the Russian General Staff’s Office for UAV Development, Russian drones performed over 23,000 flights, lasting 140,000 hours in total.

Russia’s State Armament Program for 2018-2027 puts the creation of armed UAVs at the top of priorities’ list. Looks like the effort begins to pay off. Russia is well on the way to become second to none in UAV capability.

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Via Strategic Culture

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