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China finally switching to Russian gas

Article in Global Times complains of irregular deliveries of gas from Central Asia; hinting at preference for Russian gas

Alexander Mercouris

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As the giant Power of Siberia pipeline intended to transport natural gas from Yakutia and the Irkutsk areas of Russia to China approaches completion, with Gazprom saying that it is now two-thirds complete, the semi-official Chinese newspaper Global Times has published an article complaining about irregularities in the supply of gas from China’s traditional Central Asian gas suppliers, Turkmenistan and Uzbekistan.

The sharp drop of liquefied natural gas (LNG) shipments through a key Central Asian pipeline network has put the already-tight domestic LNG supply situation to the test.

There are two reasons for the plunging shipments: first, LNG demand increased in the supplier countries themselves; second, the suppliers were withholding LNG in hopes of getting better prices in other markets. Those factors prompted the suppliers to break the terms of their contracts with China.

According to a statement by China National Petroleum Corp (CNPC) issued on January 31, the nation’s LNG supply situation has been deteriorating. The volume of LNG received through central Asian pipeline networks has fallen by nearly half, domestic news portal jiemian.com reported. The sudden cuts by two Central Asian countries, Turkmenistan and Uzbekistan, added a new risk to the Chinese energy supply network. China needs to re-evaluate the security of its energy supply network in Central Asia.

According to insiders at China’s three major State-owned oil companies, the Central Asian countries failed to provide China with the contracted volumes of LNG with the excuse that they didn’t have enough money to repair broken LNG equipment. A notice issued by CNPC stated that Central Asian countries owe China an average LNG volume of 30 million cubic meters per day, according to jiemian.com

Sources also said that China National United Oil Corp is negotiating with these LNG suppliers. But it seems that Chinese oil companies have no bargaining chip if the suppliers don’t keep their end of the deal. Instead of China, the suppliers can potentially send LNG to Europe at a higher price.

The cut in LNG supplies has added a new risk factor to China’s energy security, with domestic LNG inventories at record lows. Data from the Beijing oil & gas transportation center showed that the domestic natural gas pipeline network had “emergency” storage of 1.99 billion cubic meters at the end of January. According to jiemian.com, as of January 30, the volume available for sale in the current pipeline network was 420 million cubic meters per day whereas demand was 445 million cubic meters per day, in addition to the network’s own use of 5 million cubic meters per day. So the domestic supply gas is about 30 million cubic meters per day.

As a result, CNPC must ration the supply and sale of LNG to avoid a total collapse of the LNG pipeline system.

The China-Central Asia LNG pipeline, which starts at the border between Turkmenistan and Uzbekistan on the banks of the Amu Darya River, is one of the world’s longest LNG pipeline. The gas pipeline runs about 10,000 kilometers, with 188 kilometers in Turkmenistan, 530 kilometers in Uzbekistan, 1,300 kilometers in Kazakhstan and 8,000 kilometers in China.

Turkmenistan is the largest pipeline LNG exporter to China. But since January, the gas concern there has shut down supply three times.

If all these figures are true, the risk is obvious: Central Asia has emerged as a broken link in the international energy security network that China has made such effort to forge.

With China participating in globalization as the “world’s factory,” ensuring energy security is vital for China. China has put huge resources (in banking, diplomacy, investment, markets and public finance) and effort into building a five-channel international energy supply network to satisfy the world’s largest oil and gas demand.

As China adjusts its energy consumption structure, switching to green energy, the demand for LNG will constantly grow and create a heavy dependency on foreign resources. The high dependency on LNG from Turkmenistan has become a potential security risk.

If this situation continues, it will not only lead to unexpected problems for State-owned petroleum corporations, it will also leave the Chinese government unprepared. If the key passage of LNG is not stable, the security of China’s international energy supply network must be re-evaluated.

Russia and the Power of Siberia pipeline are conspicuously never mentioned in this article.  Nonetheless Chinese anger and concern about the breaches of contract by their traditional Central Asian gas suppliers is clear enough, as is the urgently expressed need for China to diversify away from them to a more reliable supplier, which can only be Russia.

The article in fact highlights the key role of natural gas in China’s future energy mix.

A visit to Shanghai in August impressed on me the extent to which the disastrous state of air pollution has become a major political and social in China, with China having a pressing need to move towards a ‘greener’ energy mix and to move away from its present over-reliance on coal.

As the article in Global Times shows, natural gas plays a critical role in all this, even as China forges ahead with alternative energy technologies, and a stable and reliable supply of gas to the Chinese energy market is regarded by China as essential for its energy security.

It turns out that the Chinese are finding that the Central Asian states upon which they have up to now relied for their gas are unable to maintain their gas pipeline infrastructure – much of which was built by the USSR – and are not above abusing their monopoly positions in China’s gas market to extort from China a higher price for their gas, even if this involves breaking their contracts with China.

This contrasts with Gazprom, which has a well-earned reputation for being an exceptionally reliable supplier, invariably honouring its gas supply contracts, and having all the technical and logistical resources needed to maintain its gas pipeline and gas transportation infrastructure and network in good working order.

The logic of substituting Gazprom and Russia for the Central Asian states as China’s main source of natural gas is obvious, and the Global Times article both highlights it and hints at it.

The Global Times article highlights a key point about Russian-Chinese economy cooperation.

Though trade between the countries does not approach the volumes of trade between China and the US or the EU, it is rising rapidly, with the two countries having resources which compliment each other.

Moreover Russia looks to be becoming an increasingly important source for China’s energy and raw material imports, as China discovers the difficulty of importing them reliably from elsewhere, and must also worry about US threats to blockade China’s main sea route, the South China Sea.

Russia has already replaced Saudi Arabia as China’s main source of oil.  It looks increasingly positioned to replace the Central Asian states as China’s main source of natural gas as well.

The economic linkages between the two countries are growing bigger and stronger, with their importance to each country starting to transcend their physical volume, as each comes to rely more on the other for the critical imports each needs.

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Can America Ever Come Together Again?

The people who cheer Trump believe the country they inherited from their fathers was a great, good and glorious country, and that the media who detest Trump also despise them.

Patrick J. Buchanan

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Authored by Patrick Buchanan via Buchanan.org:


If ex-CIA Director John Brennan did to Andrew Jackson what he did to Donald Trump, he would have lost a lot more than his security clearance.

He would have been challenged to a duel and shot.

“Trump’s … performance in Helsinki,” Brennan had said, “exceeds the threshold of ‘high crimes & misdemeanors.’ It was … treasonous.”

Why should the president not strip from a CIA director who calls him a traitor the honor and privilege of a security clearance? Or is a top-secret clearance an entitlement like Social Security?

CIA directors retain clearances because they are seen as national assets, individuals whose unique experience, knowledge and judgment may be called upon to assist a president in a national crisis.

Not so long ago, this was a bipartisan tradition.

Who trashed this tradition?

Was it not the former heads of the security agencies — CIA, FBI, director of national intelligence — who have been leveling the kind of savage attacks on the chief of state one might expect from antifa?

Are ex-security officials entitled to retain the high privileges of the offices they held, if they descend into cable-TV hatred and hostility?

Former CIA chief Mike Hayden, in attacking Trump for separating families of detained illegal immigrants at the border, tweeted a photo of the train tracks leading into Auschwitz.

“Other governments have separated mothers and children” was Hayden’s caption.

Is that fair criticism from an ex-CIA director?

Thursday, The New York Times decried Trump’s accusation that the media are “the enemy of the people.”

“Insisting that truths you don’t like are ‘fake news’ is dangerous to the lifeblood of democracy. And calling journalists ‘the enemy of the people’ is dangerous, period,” said the Times.

Fair enough, but is it not dangerous for a free press to be using First Amendment rights to endlessly bash a president as a racist, fascist, sexist, neo-Nazi, liar, tyrant and traitor?

The message of journalists who use such terms may be to convey their detestation of Trump. But what is the message received in the sick minds of people like that leftist who tried to massacre Republican congressmen practicing for their annual softball game with Democrats?

And does Trump not have a point when he says the Boston Globe-organized national attack on him, joined in by the Times and 300 other newspapers, was journalistic “collusion” against him?

If Trump believes that CNN, MSNBC, The New York Times and The Washington Post are mortal enemies who want to see him ousted or impeached, is he wrong?

We are an irreconcilable us-against-them nation today, and given the rancor across the ideological, social and cultural chasm that divides us, it is hard to see how, even post-Trump, we can ever come together again.

Speaking at a New York LGBT gala in 2016, Hillary Clinton said: “You could put half of Trump’s supporters into what I call the basket of deplorables … racist, sexist, homophobic, xenophobic, Islamophobic … Some of those folks … are irredeemable, but … they are not America.”

When Clinton’s reflections on Middle America made it into print, she amended her remarks. Just as Gov. Andrew Cuomo rushed to amend his comments yesterday when he blurted at a bill-signing ceremony:

“We’re not going to make America great again. It was never that great.” America was “never that great”?

Cuomo’s press secretary hastened to explain, “When the president speaks about making America great again … he ignores the pain so many endured and that we suffered from slavery, discrimination, segregation, sexism and marginalized women’s contributions.”

Clinton and Cuomo committed gaffes of the kind Michael Kinsley described as the blurting out of truths the speaker believes but desperately does not want a wider audience to know.

In San Francisco in 2008, Barack Obama committed such a gaffe.

Asked why blue-collar workers in industrial towns decimated by job losses were not responding to his message, Obama trashed these folks as the unhappy losers of our emerging brave new world:

“They get bitter, they cling to guns or religion or antipathy to people who aren’t like them or anti-immigrant sentiment or anti-trade sentiment as a way to explain their frustrations.”

These clingers to their Bibles, bigotries and guns are the people the mainstream media, 10 years later, deride and dismiss as “Trump’s base.”

What Clinton, Cuomo and Obama spilled out reveals what is really behind the cultural and ideological wars of America today.

Most media elites accept the historic indictment — that before the Progressives came, this country was mired in racism, sexism, homophobia and xenophobia, and that its history had been a long catalog of crimes against indigenous peoples, Africans brought here in bondage, Mexicans whose lands we stole, migrants, and women and gays who were denied equality.

The people who cheer Trump believe the country they inherited from their fathers was a great, good and glorious country, and that the media who detest Trump also despise them.

For such as these, Trump cannot scourge the media often enough.

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Are the mainstream U.S. ‘news’ media evil?

Mainstream media refuses to give airtime to intelligence professionals who can prove the current Russia-DNC narrative is a complete fabrication.

Eric Zuesse

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Eric Zuesse, published originally by The Saker:


William Binney, the U.S. National Security Agency’s former technical director for global analysis, has, for the past year, been globe-trotting to investigate the actual evidence regarding the official Russiagate investigations, and he finds that the Special Counsel, Robert Mueller, who is prosecuting Russia’s Government, can only accuse Russian officials, not convict any of them on at least the important charges, because conclusive evidence exists and has already been made public online, making clear that the important accusations against those officials are false. However, Binney can’t get any of the U.S. major ‘news’ media’s interest in this fact, nor even into openly discussing it with them. Apparently, they don’t want to know. Binney is knocking on their doors, and they refuse to answer.

Patrick Lawrence, at the non-mainstream U.S. newsmedium Consortium News, headlined on Monday August 13th, “‘Too Big to Fail’: Russia-gate One Year After VIPS Showed a Leak, Not a Hack” and he reported what Binney has found and has been trying to get the major U.S. ‘news’media to present to the American public.

The “VIPS” there is Veteran Intelligence Professionals for Sanity, and they are 17 whistleblowing former high officials of the CIA, NSA, State Department, and other U.S. officials with top secret national-security clearances, who jointly signed and published on 24 July 2017, their report, which likewise was at Consortium News, “Intel Vets Challenge ‘Russia Hack’ Evidence”, in which they confirmed the validity of a 9 July 2017 report that had been published by Elizabeth Vos of Disobedient Media . com, which was titled “New Research Shows Guccifer 2.0 Files Were Copied Locally, Not Hacked” and which I then reported in more ordinary language seven days later under the headline “Russiagate Exposed: It’s a Fraud”. I quoted there the analysis’s basic finding “that the DNC computer network which the media tells us and the DNC tells us was hacked by the Russians, … was physically accessed by someone within close proximity of the DNC” and not outside the United States (Russia or anywhere else). The original research-report had been done by an anonymous person who called himself “the forensicator,” and he had sent it to Adam Carter, another highly technically knowledgeable person, who happened to be at Disobedient Media, and who then worked with Vos to prepae her article on it.

Binney, as the nation’s now-retired top NSA expert in the analysis of such matters, then followed up, during the past year, in order to probe more deeply, by contacting various individuals who had been involved behind the scenes; and Patrick Lawrence’s article was a report of what Binney had found. It’s this:

The forensic scientists working with VIPS continued their research and experiments after VIPS50 was published. So have key members of the VIPS group, notably William Binney, the National Security Agency’s former technical director for global analysis and designer of programs the agency still uses to monitor internet traffic. Such work continues as we speak, indeed. This was always the intent: “Evidence to date” was the premise of VIPS50. Over the past year there have been confirmations of the original thesis and some surprises that alter secondary aspects of it. Let us look at the most significant of these findings.

At the time I reported on the findings of VIPS and associated forensic scientists, that the most fundamental evidence that the events of summer 2016 constituted a leak, not a hack, was the transfer rate—the speed at which data was copied. The speed proven then was an average of 22.7 megabytes per second. …

The fastest internet transfer speed achieved, during the New Jersey–to–Britain test, was 12.0 megabytes of data per second. Since this time it has emerged from G-2.0’s metadata that the detected average speed—the 22.7 megabytes per second—included peak speeds that ran as high as 49.1 megabytes per second, impossible over the internet. “You’d need a dedicated, leased, 400–megabit line all the way to Russia to achieve that result,” Binney said in a recent interview. … That remains the bedrock evidence of the case VIPS and others advance without qualification. “No one—including the FBI, the CIA, and the NSA—has come out against this finding,” Binney said Monday. …

The identity of Guccifer 2.0, who claimed to be a Romanian hacker but which the latest Mueller indictment claims is a construct of the GRU, Russian military intelligence, has never been proven. The question is what G–2.0 did with or to the data in question. It turns out that both more, and less, is known about G–2.0 than was thought to have been previously demonstrated. This work has been completed only recently. It was done by Binney in collaboration with Duncan Campbell, a British journalist who has followed the Russia-gate question closely.

Peak Speed Established

Binney visited Campbell in Brighton, England, early this past spring. They examined all the metadata associated with the files G–2.0 has made public. They looked at the number of files, the size of each, and the time stamps at the end of each. It was at this time that Binney and Campbell established the peak transfer rate at 49.1 megabytes per second. … “Now you need to prove everything you might think about him,” Binney told me. “We have no way of knowing anything about him or what he has done, apart from manipulating the files. …

The conclusions initially drawn on time and location in VIPS50 are now subject to these recent discoveries. “In retrospect, giving ‘equal importance’ status to data pertaining to the locale was mistaken,” Ray McGovern, a prominent VIPS member, wrote in a recent note. “The key finding on transfer speed always dwarfed it in importance.” … 

How credible are those indictments in view of what is now known about G–2.0?

Binney told me: “Once we proved G–2.0 is a fabrication and a manipulator, the timing and location questions couldn’t be answered but really didn’t matter. I don’t right now see a way of absolutely proving either time or location. But this doesn’t change anything. We know what we know: The intrusion into the Democratic National Committee mail was a local download—wherever ‘local’ is.” That doesn’t change. As to Rosenstein, he’ll have a lot to prove.”

However, yet another technically knowledgeable analyst of the available evidence, George Eliason, claims that to assert that there were only “leaks” and not also “hacks” would clearly be wrong, because there were both. On August 14th, he bannered at Washington’s Blog, “Beyond The DNC Leak: Hacks and Treason” and he wrote:

There were multiple DNC hacks. There is also clear proof supporting the download to a USB stick and subsequent information exchange (leak) to Wikileaks. All are separate events.

Here’s what’s different in the information I’ve compiled.

The group I previously identified as Fancy Bear was given access to request password privileges at the DNC. And it looks like the DNC provided them with it.

I’ll show why the Podesta email hack looks like a revenge hack.

The reason Republican opposition research files were stolen can be put into context now because we know who the hackers are and what motivates them.

At the same time this story developed, it overshadowed the Hillary Clinton email scandal. It is a matter of public record that Team Clinton provided the DNC hackers with passwords to State Department servers on at least 2 occasions, one wittingly and one not. I have already clearly shown the Fancy Bear hackers are Ukrainian Intelligence Operators.

This gives some credence to the Seth Rich leak (DNC leak story) as an act of patriotism. If the leak came through Seth Rich, it may have been because he saw foreign Intel operatives given this access from the presumed winners of the 2016 US presidential election. No political operative is going to argue with the presumed president-elect over foreign policy. The leaker may have been trying to do something about it. I’m curious what information Wikileaks might have.

Eliason’s analysis doesn’t support Robert Mueller’s indictments any more than the others do. All are essentially incompatible with the accusations (including ones which now have become also indictments) from Mueller. Moreover, as Patrick Lawrence noted, “Indictments are not evidence and do not need to contain evidence. That is supposed to come out at trial, which is very unlikely to ever happen. Nevertheless, the corporate media has treated the indictments as convictions.” Maybe that’s the biggest crime of all.
—————
Investigative historian Eric Zuesse is the author, most recently, of  They’re Not Even Close: The Democratic vs. Republican Economic Records, 1910-2010, and of  CHRIST’S VENTRILOQUISTS: The Event that Created Christianity.

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The Discarded Wisdom of America’s Founders

The great rule of conduct for us in regard to foreign nations is in extending our commercial relations, to have with them as little political connection as possible.

Eric Zuesse

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A good example of the discarded wisdom of America’s Founders is George Washington’s Farewell Address to the nation, delivered by him not orally but instead solely in printed form, published in Philadelphia by David C. Claypoole’s American Daily Advertiser, on 19 September 1796, and distributed to the nation. The following extended excerpt from it is the most famous part of it, and is being blatantly raped by today’s U.S. Government, and therefore it might indicate the necessity for a second American Revolution, this one to disown and throw out not Britain’s Aristocracy, but America’s aristocracy. America’s Founders had done all they knew how to do to conquer Britain’s aristocracy, and they embodied in our Constitution all that they knew in order to prevent any aristocracy ever from arising in this nation; but the Founders clearly had failed in this their dearest hope, because a domestic U.S. aristocracy has arisen here and destroyed American democracy, as this nation’s Founders had feared, and as Washington in this document effectively affirms — and, by these words, proves — to have happened (they’ve taken over this country, in and by both of its Parties, and so we have here a profound and scathing, blistering, criticism of today’s American Government):

Observe good faith and justice towards all nations; cultivate peace and harmony with all. Religion and morality enjoin this conduct; and can it be, that good policy does not equally enjoin it? It will be worthy of a free, enlightened, and at no distant period, a great nation, to give to mankind the magnanimous and too novel example of a people always guided by an exalted justice and benevolence. Who can doubt that, in the course of time and things, the fruits of such a plan would richly repay any temporary advantages which might be lost by a steady adherence to it ? Can it be that Providence has not connected the permanent felicity of a nation with its virtue? The experiment, at least, is recommended by every sentiment which ennobles human nature. Alas! is it rendered impossible by its vices?

In the execution of such a plan, nothing is more essential than that permanent, inveterate antipathies against particular nations, and passionate attachments for others, should be excluded; and that, in place of them, just and amicable feelings towards all should be cultivated. The nation which indulges towards another a habitual hatred or a habitual fondness is in some degree a slave. It is a slave to its animosity or to its affection, either of which is sufficient to lead it astray from its duty and its interest. Antipathy in one nation against another disposes each more readily to offer insult and injury, to lay hold of slight causes of umbrage, and to be haughty and intractable, when accidental or trifling occasions of dispute occur. Hence, frequent collisions, obstinate, envenomed, and bloody contests. The nation, prompted by ill-will and resentment, sometimes impels to war the government, contrary to the best calculations of policy. The government sometimes participates in the national propensity, and adopts through passion what reason would reject; at other times it makes the animosity of the nation subservient to projects of hostility instigated by pride, ambition, and other sinister and pernicious motives. The peace often, sometimes perhaps the liberty, of nations, has been the victim.

So likewise, a passionate attachment of one nation for another produces a variety of evils. Sympathy for the favorite nation, facilitating the illusion of an imaginary common interest in cases where no real common interest exists, and infusing into one the enmities of the other, betrays the former into a participation in the quarrels and wars of the latter without adequate inducement or justification. It leads also to concessions to the favorite nation of privileges denied to others which is apt doubly to injure the nation making the concessions; by unnecessarily parting with what ought to have been retained, and by exciting jealousy, ill-will, and a disposition to retaliate, in the parties from whom equal privileges are withheld. And it gives to ambitious, corrupted, or deluded citizens (who devote themselves to the favorite nation), facility to betray or sacrifice the interests of their own country, without odium, sometimes even with popularity; gilding, with the appearances of a virtuous sense of obligation, a commendable deference for public opinion, or a laudable zeal for public good, the base or foolish compliances of ambition, corruption, or infatuation.

As avenues to foreign influence in innumerable ways, such attachments are particularly alarming to the truly enlightened and independent patriot. How many opportunities do they afford to tamper with domestic factions, to practice the arts of seduction, to mislead public opinion, to influence or awe the public councils? Such an attachment of a small or weak towards a great and powerful nation dooms the former to be the satellite of the latter.

Against the insidious wiles of foreign influence (I conjure you to believe me, fellow-citizens) the jealousy of a free people ought to be constantly awake, since history and experience prove that foreign influence is one of the most baneful foes of republican government. But that jealousy to be useful must be impartial; else it becomes the instrument of the very influence to be avoided, instead of a defense against it. Excessive partiality for one foreign nation and excessive dislike of another cause those whom they actuate to see danger only on one side, and serve to veil and even second the arts of influence on the other. Real patriots who may resist the intrigues of the favorite are liable to become suspected and odious, while its tools and dupes usurp the applause and confidence of the people, to surrender their interests.

The great rule of conduct for us in regard to foreign nations is in extending our commercial relations, to have with them as little political connection as possible. So far as we have already formed engagements, let them be fulfilled with perfect good faith. Here let us stop. Europe has a set of primary interests which to us have none; or a very remote relation. Hence she must be engaged in frequent controversies, the causes of which are essentially foreign to our concerns. Hence, therefore, it must be unwise in us to implicate ourselves by artificial ties in the ordinary vicissitudes of her politics, or the ordinary combinations and collisions of her friendships or enmities.

Our detached and distant situation invites and enables us to pursue a different course. If we remain one people under an efficient government, the period is not far off when we may defy material injury from external annoyance; when we may take such an attitude as will cause the neutrality we may at any time resolve upon to be scrupulously respected; when belligerent nations, under the impossibility of making acquisitions upon us, will not lightly hazard the giving us provocation; when we may choose peace or war, as our interest, guided by justice, shall counsel.

Why forego the advantages of so peculiar a situation? Why quit our own to stand upon foreign ground? Why, by interweaving our destiny with that of any part of Europe, entangle our peace and prosperity in the toils of European ambition, rivalship, interest, humor or caprice?

It is our true policy to steer clear of permanent alliances with any portion of the foreign world; so far, I mean, as we are now at liberty to do it; for let me not be understood as capable of patronizing infidelity to existing engagements. I hold the maxim no less applicable to public than to private affairs, that honesty is always the best policy. I repeat it, therefore, let those engagements be observed in their genuine sense. But, in my opinion, it is unnecessary and would be unwise to extend them.

Taking care always to keep ourselves by suitable establishments on a respectable defensive posture, we may safely trust to temporary alliances for extraordinary emergencies.

Harmony, liberal intercourse with all nations, are recommended by policy, humanity, and interest. But even our commercial policy should hold an equal and impartial hand; neither seeking nor granting exclusive favors or preferences; consulting the natural course of things; diffusing and diversifying by gentle means the streams of commerce, but forcing nothing; establishing (with powers so disposed, in order to give trade a stable course, to define the rights of our merchants, and to enable the government to support them) conventional rules of intercourse, the best that present circumstances and mutual opinion will permit, but temporary, and liable to be from time to time abandoned or varied, as experience and circumstances shall dictate; constantly keeping in view that it is folly in one nation to look for disinterested favors from another; that it must pay with a portion of its independence for whatever it may accept under that character; that, by such acceptance, it may place itself in the condition of having given equivalents for nominal favors, and yet of being reproached with ingratitude for not giving more. There can be no greater error than to expect or calculate upon real favors from nation to nation. It is an illusion, which experience must cure, which a just pride ought to discard.

—————

Investigative historian Eric Zuesse is the author, most recently, of  They’re Not Even Close: The Democratic vs. Republican Economic Records, 1910-2010, and of  CHRIST’S VENTRILOQUISTS: The Event that Created Christianity.

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