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The US will never allow its EU puppet leaders to throw Greece out of the Euro

The EU has no real leverage on Greece and Tsipras knows it. This is not about fiscal policy or debt…this is about Merkel and her US rulers not allowing Greece to pivot east under any circumstances.

Alex Christoforou

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Post originally appeared on Al Jazeera.

You can ignore all the talk of a “Grexit,” the bluff and bluster of right-wing German ideologues such as Finance Minister Wolfgang Schäuble who would celebrate it, and repetitive, stubbornly dire warnings that time is running out. Did you notice that the much-hyped June 5 deadline for the Greece’s payment to the International Monetary Fund (IMF) came and went, Greece didn’t pay and nobody fell off a cliff? Trust me, this is not a cliffhanger.

Although there have been numerous references to game theory in the ongoing commentary, it’s really not necessary if you look at the revealed preferences of those whom the Syriza government is polite and diplomatic enough to call its European partners. Take partner-in-chief German Chancellor Angela Merkel: If there’s one thing she doesn’t want to be remembered as, it’s the politician who destroyed the eurozone.

Of course, we don’t know if a Greek exit would do that, but there’s a chance that it could. Even if the European Central Bank would be able to contain the resulting financial crisis, it is possible that Greece would, after an initial shock, ultimately do much better outside the euro, which might convince others to want to leave. Whatever the probability of that scenario, Merkel is, like most successful politicians, a risk-averse creature who won’t roll those dice.

And there is an elephant in the room that she is not going to ignore: the United States. There are scattered press reports that Barack Obama’s administration has put pressure on Merkel to reach an agreement with Greece, but the importance of that has been vastly understated. Unless it is a request that could get a German government voted out of office — such as George W. Bush’s bid for support of his invasion of Iraq in 2003 — something that is strategically important to Washington is extremely likely to find agreement in Berlin. And in this case, Merkel and Obama are basically on the same page.

The politics of empire are much more important than any economic concerns here. For the same reasons that the United States intervened in Greece’s civil war (1946 to ’49) and supported the brutal military dictatorship (1967 to ’74) — with all the murder, torture and repression that these involved — Washington does not want to have an independent government in Greece.

Europe is the United States’ most important ally in the world, and Washington doesn’t want to lose even a small piece of it, even little Greece. Everybody knows that if Greece leaves the euro and needs to borrow hard currency for its balance of payments, it will get some from Russia and maybe even China. Greece could leave NATO. Greece could participate in Russia’s proposed gas pipeline project, which would make Europe more dependent on Russia — something that American officials warned against, drawing a sharp rebuke from Greece’s energy minister, who rightfully told them it was none of their business.

It would be nice to think that the worst features of U.S. foreign policy have changed since the collapse of the Soviet Union, but they have not. The Cold War never really ended, at least insofar as the U.S. is still a global empire and wants every government to put Washington’s interests ahead of those expressed by its own voters. The current hostilities with Russia add a sense of déjà vu, but they are mainly an added excuse for what would be U.S. policy in any case.

Once we take all these interests into account and where they converge, the strategy of Greece’s European partners is pretty clear: It’s all about regime change. One senior Greek official involved in the negotiations referred to it as a “slow-motion coup d’état.” And those who were paying attention could see this from the beginning. Just 10 days after Syriza was elected, as I noted previously, the European Central Bank cut off its main line of credit to Greece and then capped the amount that Greek banks could lend to the government. All the hype and brinkmanship destabilize the economy, and some of this is an intentional effect of European authorities’ statements and threats. But the direct sabotage of the Greek economy is most important, and it is remarkable that it has gotten so little attention.

The unannounced objective is to undermine political support for the Syriza government until it falls and get a new regime that is preferable to the European partners and the U.S. This is the only strategy that makes sense, from their point of view. They will try to give Greece enough oxygen to avoid default and exit, which they really don’t want, but not enough for an economic recovery, which they also don’t want.

So far, the damage to the Greek economy has been quite significant. The IMF projected growth of 2.5 percent this year, and now the economy is in recession.

According to leaked documents published by The Financial Times on June 5, the European officials’ negotiating position is a primary budget surplus of 1 percent of GDP in 2015 and 2 percent of GDP in 2016. This represents a climb down from the ridiculous goals that the IMF previously put forth, which called for primary surpluses at “above 4 percent of GDP” for “many years to come.” But with the economy in recession and the current primary surplus at negative 0.67 percent of GDP, the current proposed targets would stifle Greece’s recovery, perhaps even prolong the recession and maintain depression levels of unemployment.

Another sticking point in the current negotiations has to do with debt relief. Even the IMF now recognizes that Greece’s current debt burden is unsustainable, but the European officials are not budging. This pretty much guarantees more crises down the road, which is a major drag on recovery. Who wants to invest or even consume very much with inevitable financial crises on the horizon?

The European officials’ demand for further pension cuts is even more difficult to justify, given what Greece has already done. Besides raising the retirement age by five years (from 60 to 65), The Financial Times reports, “main pensions have been slashed 44 to 48 percent since 2010, reducing the average pension to 700 euros a month … About 45 percent of Greek pensioners receive less than 665 euros monthly — below the official poverty threshold.”

European officials are making more demands for labor law reform, on the dubious theory that further weakening labor’s bargaining power and driving down wages (as if 26.6 percent unemployment doesn’t do that enough) will increase competitiveness enough to spur an export-led recovery.

So we see the ugliest of scenarios playing out: The people primarily responsible for Greece’s deep and prolonged depression and high unemployment are pushing policies that would extend the crisis and worsen its impact on those who have suffered the most — not to mention subvert the will of the electorate.

So far, the government is hanging in there, with the latest polls showing Tsipras’ approval rating at 66 percent. It’s impressive that so many Greeks still understand who is responsible for the crisis, in spite of the balance of media prejudice against the government. It’s vitally important, because Greece’s adversaries are counting on being able to deceive them.

Mark Weisbrot is co-director of the Center for Economic and Policy Research in Washington, D.C. and president of Just Foreign Policy. He is also the author of the forthcoming book “Failed: What the ‘Experts’ Got Wrong about the Global Economy.”

References:

http://america.aljazeera.com/opinions/2015/6/germany-is-bluffing-on-greece.html

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Germany Wants Nuclear Bombers

Germany does not manufacture atomic weapons but has come to consider itself as a nuclear power because it has vectors to use them.

The Duran

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Via VoltaireNet.org:


Germany’s armed forces are currently studying the possibility of acquiring nuclear bombers capable of using the new American B61-12 atomic bombs.

Meanwhile, the Pentagon itself plans to deploy these new atomic bombs in the German region of Eifel, in violation of the Nuclear Non-Proliferation Treaty.

The German air force already has multi-tasking Tornado warplanes, which are already capable of deploying American atomic bombs. But those aircraft are going to be replaced, possibly, by European-developed Eurofighters, or by United States manufactured F/A-18 Super Hornets.

Either way, the warplane that Germany selects will have to be equipped with the AMAC (Aircraft Monitoring and Control) system, which allows the use of the new American atomic bombs and enables the regulation of the power of the explosion as well as at what height the bombs explode after they are launched.

Germany does not manufacture atomic weapons but has come to consider itself as a nuclear power because it has vectors to use them, and believes that this gives it the right to sit on the UN Security Council sharing the permanent member position occupied by France.

Both countries would thus represent the European Union, under the auspices of NATO.

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1st since Notre Dame: Yellow Vests back despite ‘unifying’ disaster & they are angry

‘Yellow Vests’ march in Paris for 23rd straight week.

RT

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Via RT…


Yellow Vests protests brought clashes and tear gas back to the streets of Paris, despite politicians’ calls for “unity” in the wake of the Notre Dame fire. For protesters, the response to the fire only showed more inequality.

Saturday’s protests mark the 23rd straight weekend of anti-government demonstrations, but the first since Notre Dame de Paris went up in flames on Monday. Officials were quick to criticize the protesters for returning to the streets so soon after the disaster.

“The rioters will be back tomorrow,” Interior Minister Christophe Castaner told reporters on Friday. “The rioters have visibly not been moved by what happened at Notre-Dame.”

For many of the protesters, grief over the destruction of the 800-year-old landmark has made way for anger. With smoke still rising from Notre Dame, a group of French tycoons and businessmen pledged €1 billion to the cathedral’s reconstruction, money that the Yellow Vests say could be better spent elsewhere.

“If they can give dozens of millions to rebuild Notre Dame, they should stop telling us there is no money to respond to the social emergency,” trade union leader Philippe Martinez told France 24.

Saturday’s protests saw a return to scenes familiar since the Yellow Vests first mobilized in November to protest a fuel tax hike. Demonstrators in Paris’ Bastille district set barricades on fire and smashed vehicles, and police deployed tear gas to keep the crowds at bay.

Sporadic incidents of vandalism and looting were reported across the city, and some journalists even reported rioters throwing feces at police.

60,000 police officers were deployed across the country, and in Paris, a security perimeter was set up around Notre Dame. A planned march that would have passed the site was banned by police, and elsewhere, 137 protesters had been arrested by mid afternoon, police sources told Euronews.

Beginning as a show of anger against rising fuel costs in November, the Yellow Vests movement quickly evolved into a national demonstration of rage against falling living standards, income inequality, and the perceived elitism and pro-corporation policies of President Emmanuel Macron. Over 23 weeks of unrest, Macron has made several concessions to the protesters’ demands, but has thus far been unable to quell the rising dissent.

After Notre Dame caught fire on Monday, the president postponed a television address to the nation, during which he was expected to unveil a package of tax cuts and other economic reforms, another measure to calm the popular anger in France.

Macron’s address will be held on Thursday.

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O Canada! The True North Strong and Free – Not

Maybe it’s past time for Canadians to get serious again about their independence.

Jim Jatras

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Authored by James George Jatras via The Strategic Culture Foundation:


Canadian visitors to Washington sometimes wonder why their embassy stands at the foot of Capitol Hill.

The answer? To be close to where Canada’s laws are made.

A main showcase of Ottawa’s craven servility to Washington is Prime Minister Justin Trudeau’s complicity in the US-led regime change operation being conducted against Venezuela. Not content with ruining his own country with multiculturalism, polysexualism, and the like, Li’l Justin has acted in lockstep with Big Brother to the south inslapping sanctions on Venezuelan officials and serving as a US agent of influence, especially with other countries in the western hemisphere:

‘A Canadian Press report published at the end of January revealed that Canadian diplomats worked systematically over several months with their Latin American counterparts in Caracas to prepare the current regime-change operation, pressing [Venezuelan President Nicolás] Maduro’s right-wing opponents to set aside their differences and mount a joint challenge to the government. “The turning point,” said the Canadian Press [Global News], “came Jan. 4, when the Lima Group … rejected the legitimacy of Maduro’s May 2018 election victory and his looming January 10 inauguration, while recognizing the ‘legitimately elected’ National Assembly.” The report cited an unnamed Canadian official as saying the opposition “were really looking for international support of some kind, to be able to hold onto a reason as to why they should unite, and push somebody like Juan Guaidó.”

‘One day prior to Maduro’s inauguration, [Canadian Foreign Minister Chrystia] Freeland spoke to Guaidó, the newly-elected National Assembly speaker, by telephone to urge him to challenge the elected Venezuelan president.’

But that’s not all. Canada is out front and center in the “Five Eyes” intelligence agencies’ war on China’s Huawei – with direct prompting from US legislators and intelligence.  As explained by Col. Larry Wilkerson, former chief of staff to Gen. Colin Powell, it’s not that Huawei violated any law when circumventing US sanctions but it is the US that is acting illegally by unilaterally imposing sanctions that were never agreed to internationally. But that’s OK – when it comes to Washington’s claims of jurisdiction over every human being on the planet, Justin and Chrystia are happy to oblige!

Also, let’s not forget Chrystia’s role in keeping the pot boiling in Ukraine. It would of course be cynical (and probably racist) to attribute anything relating to Ukraine to her own interesting family background …

To be fair, the lickspittle attitude of Canadian officials towards their masters south of the 49th parallel is hardly unique in the world. Also to be fair, it’s natural and would be generally beneficial for Canada to have a positive relationship with a powerful, kindred neighbor rather than a negative one. Think of Austria’s ties to Germany, or the Trans-Tasman relationship of Australia and New Zealand, or the links that still exist between Russia and Ukraine despite efforts by the west to set them against each other (as, for example, Spain and Portugal were at loggerheads for several centuries, when the latter was a loyal ally of Spain’s foe, Great Britain, to such an extent that Portugal was sometimes shown on maps and globes in the same pink as British possessions; a similar situation existed between Argentina and British ally Chile).

A close and mutually advantageous relationship is one thing, but Canada’s de facto loss of independence is another. Not only does the US control Canada’s diplomacy, military, and intelligence but also her financial system (with, among other levers, the notorious FATCA law, which places Canadian institutions under the supervision of the IRS, with Canada’s revenue service acting, care of the Canadian taxpayer, as a cat’s paw for not only the IRS but the NSA and other snooping agencies). As explained by one Canadian nationalist (yes, they do exist!), the redoubtable David Orchard, trade is also a critical issue:

‘Canada …, after almost three decades of “free trade” with the U.S., has more than $1.2 trillion in federal and provincial debt, large deficits at every level, no national child or dental care, high university tuition, miserly old age pensions, years of massive budget cuts, and giveaway prices for its exports of oil, gas, timber and minerals.

‘For 150 years, great Canadian leaders have warned that without an economic border with the United States, we would soon no longer have a political border.

‘We once owned the world’s largest farm machinery maker, Massey Harris, headquartered in Toronto; built the world’s largest and most respected marketer of wheat and barley, the Canadian Wheat Board, based in Winnipeg; created a great transcontinental railway system, beginning in Montreal, which tied our country together; and saw Vancouver’s shipyards produce the beautiful Fast Cat ferry.

‘Instead of spending hundreds of billions on foreign-made machinery, electronics, automobiles, ships, fighter jets and passenger aircraft (even payroll systems for federal employees!), we can build our own, both for the domestic and export market.

‘We once designed and built the world’s most advanced jet interceptor, the Avro Arrow, so we know it can be done. [Emphasis added] With Canada’s resources and ingenuity, it could create a prosperous, domestically controlled economy that would give Canadians multiple benefits, security and pride of ownership. All that is required is some of the will that drove our ancestors to create an alternate power in North America. As George-Étienne Cartier, the great Québécois Father of Confederation, put it, “Now everything depends on our patriotism.”’ [Note: Orchard is the author of the must-read book The Fight for Canada: Four Centuries of Resistance to American Expansionism. To begin at the beginning, in the late 1680s, as part of English-French rivalry in North America, Massachusetts Puritans sought to root out the nest of popish deviltry known as Quebec. Following their disastrous 1690 defeat, they decided to fight Satan closer to home by hanging witches. The rest, as they say, is history…]

Scratch a Canadian patriot and you’ll hear about the Avro Canada CF-105 Arrow. As a watershed moment in Canada’s downward slide into subservience, the cancellation of what by all accounts was a magnificent aircraft – and a snapshot of what Canada’s international competitiveness (including in advanced aerospace) could have looked like had it been able to develop independently – might have been the point of being sucked into the American vortex. As noted by one response to my suggestion that Ottawa’s stance on Venezuela amounted to Canada’s annexation by the US: “Canadian here…unfortunately, the above is true (not literally of course, but in practice). It goes back even before the time of Diefenbaker, who canceled our Avro Arrow program on demand from the US – thus destroying our aerospace industry and causing brain drain to the US/Europe.”

To this day, the decision of then-Prime Minister John Diefenbaker to kill the Arrow project (and “put 14,528 Avro employees, as well as nearly 15,000 other employees in the Avro supply chain of outside suppliers, out of work”) on what came to be known as “Black Friday,” February 20, 1959, remains controversial and shrouded in mystery. A mix of budgetary, political, technological, and personality factors has been cited, none of them conclusive. Pressure from the US side, including unwillingness of Washington to purchase a Canadian aircraft when the US could pressure them to buy American planes and missiles, no doubt played a key role: “Instead of the CF-105, the RCAF invested in a variety of Century Series fighters from the United States. These included the F-104 Starfighter (46 percent of which were lost in Canadian service), and (more controversial, given the cancellation of the Arrow) the CF-101 Voodoo. The Voodoo served as an interceptor, but at a level of performance generally below that expected of the Arrow.”

While we may never know reliably why Diefenbaker cancelled the Arrow or how Canada or Canadian industry might have followed a different path, there’s no question of the superior capabilities of the Arrow. As it happens, one of the few pilots who had a chance to test the Arrow in an impromptu friendly dogfight is now-retired USAF fighter pilot Col. George Jatras, later US Air Attaché in Moscow (also, this analyst’s father). As he related in 2017:

‘I’ve received a number of messages in the last couple days about this bird, including some that say it may be revived. I don’t know how The Arrow would compare to today’s aircraft, but I had a first-hand lesson on how it faired against the F-102.

‘In 1959, I was stationed at Suffolk County AFB on Long Island with the 2nd Fighter Interceptor Squadron. We had an informal exchange program with a Canadian fighter squadron stationed near Montreal. From time to time, two or four aircraft from one of the squadrons would fly to the other’s base on a weekend cross country.

‘On one such exchange, I was #3 in a four ship formation led by [former Tuskegee airmanErnie Craigwell (I don’t recall who the other pilots were). As we entered Canadian airspace, cruising at about 40,000 ft., we spotted a contrail well above our altitude (probably at 50,000ft.) and closing very fast.  As the other aircraft appeared to be passing by, we could clearly see the delta shaped wing and knew it was the Avro Arrow that the Canadian pilots had told us about. Then, instead of just passing by, he rolled in on us! Ernie called for a break and we split into elements. When we talked about the encounter afterwards we all agreed that our first thought was, “This guy is in for a surprise; he doesn’t know that he’s taking on the F-102.”  Well, we were the ones in for a surprise. Even with two elements covering each other, not one of us could get on his tail. His power and maneuverability were awesome.  After he had played with us for a few minutes, like a cat with four mice, he zoomed back up to about 50K and went on his way. What an aircraft! What a shame that it never went into production.’

What is perhaps most curious about the Arrow’s demise is that “everything was ordered brutally destroyed; plans, tools, parts, and the completed planes themselves were to be cut up, destroyed, scrapped and everything made to disappear.”  Why? Well, security of course! Don’t engage in conspiracy theories …

The Canadian national anthem finishes with a pledge: “O Canada, we stand on guard for thee.” It should be noted that understandably resentful Loyalists fleeing the US following the American Revolution were a major contribution to the growth of Canada’s English-speaking population. American troops – back when we were the plucky underdog fighting the mighty British Empire – invaded Canada in 1775 and during the War of 1812 but were defeated. Relations got testy during the American Civil War as well, and even afterwards the US was wary of a proposed united “Kingdom of Canada,” hence the choice of the name “Dominion” in 1967. If today’s Canadians think we-all down here don’t know whom they’ve mostly had in mind to “stand on guard” against all this time, they’d better think again.

Maybe it’s past time for Canadians to get serious again about their independence – eh?

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