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Thoughts on the DNC Hacking Scandal or How the Children Took Over the Western Nursery

The blaming of Putin and Russia for the leak of the DNC emails demonstrates the childishness of politics in today’s West.

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Countries that once were capable of producing political figures who were moderately to highly intelligent cannot seem to do so any more. A clear example of this is a statement Philip Hammond, the former British Foreign Secretary and current Chancellor of the Exchequer, made a few hours after it was confirmed that the country had voted to leave the European Union. When asked who will be happy with the result he said ‘Vladimir Putin’.

One must recall this is the same Philip Hammond who said that the Russian President reminds him of a man who ‘beats his wife’. Putting to one side the fact that this is a deeply vulgar thing to say about a head of state, Putin was divorced at the time the remark was made. One doesn’t know whether to laugh or cringe.

The fact of the matter is that whilst Obama came to London and told British voters how to vote in the referendum, Putin never did, nor did any members of the Russian government.

The reason that Russia is often viewed as a nation skeptical of the way things are done is Brussels is due to the aggressive stance the EU has taken against Russia whether it be economic sanctions or interventions into the political upheavals in Kiev. In fairness to Britain, when the governments of France, Germany and Poland brokered a supposed ‘peace deal’ with Kiev causing a power vacuum which was shortly thereafter filled by some of the most violent, personally unstable and corrupt politicians in the world, Britain more or less stood to the side chanting inane rhetoric like the more physically feeble friend of the burley schoolyard bully.

If Brexit is the biggest story of the political summer, the US election is sure to be the big story of the political autumn. And surprisingly developments surrounding both events are being blamed on Vladimir Putin. On the one hand there is a comical element to this scenario. If the politicians and pundits in Europe and America were to be believed, Vladimir Putin would be too busy running other peoples’ countries to run his own.

But then there is a serious side, a side that shows the metamorphoses of two western powers from countries that could manage their scandals to countries which perversely promote their scandals whilst scapegoating the blame for them simultaneously.

To better understand this one must look at the two largest scandals in Britain and America during the Cold War era.

First of all, there was Britain’s  Profumo Affair of 1962. The scandal, which signaled the decline of Harold Macmillan’s government, involved John Profumo, the Secretary of State for War, engaging in a sexual relationship with Christine Keeler who was also alleged to have also slept with a Soviet attaché living in London at the time. Profumo famously lied about the affair to the House of Commons, resulting in a disgraced resignation. At the time the blame and shame were placed on Profumo himself, the less than angelic company he kept, and on the government of which he was a minister with very important responsibilities.

If the press of 2016 had existed in 1962, one can just imagine the reports: Soviet leader uses highly trained KGB spy-strippers to sexually arouse a government minister in plans for hybrid war. Silly? Yes, but as we shall see today’s truth is stranger than yesterday’s fiction.

Just over ten years later, the Watergate Scandal in America occurred wherein President Nixon was alleged to have helped cover up a break in at the office of the opposition Democratic Party. Nixon’s government helped ease tensions between the Soviets and Americans, yet during the scandal the issue was that of Nixon’s honesty and the series of complex individuals working for him and his party.

If the pundits of 2016 had been around in the early 1970s, one could imagine the following: After negotiations to limit ballistic missiles, the Kremlin helps Nixon cover up a break in at the Watergate complex using specially imported little red tape recorders.

But enough with attempts at comedy, enter the real thing. Wikileaks have recently published emails between members of the Democratic National Committee, a group which is supposed to take a neutral stance whilst party members select their choice of candidate in the forthcoming Presidential election. The emails show that party officials worked to sabotage the surging campaign of quasi-socialist outsider Bernie Sanders in his race against establishment favourite Hillary Clinton.

Had this happened in the 1970s or 1980s one could more or less predict the following set of events. First there would be an attempted cover up which would transform into a hush-up; then there would be a bit of denial followed by some uncomfortable resignations and even a few forced apologies.

However today, the establishment of the Democratic party are blaming not Wikileaks who published the emails, not themselves for being incompetent, not themselves for being something worse than incompetent but rather dishonest and devious.  They are blaming Vladimir Putin for organising a hacking job which was published by Wikileaks!

But it gets better. The high profile Democrats making these accusations admit they don’t have evidence to implicate Putin or anyone else in Russia.  However they insist that they should simply be trusted in spite of the fact that the emails have established the fact that they have lied to their own party members and by extrapolation the American voters.

These are the same people who enjoy speaking at length about how Russia is not an open democracy in spite of the fact that Russia has four major parties with highly different programmes, whilst America has two parties which until the rise of outsiders like Bernie Sanders and Donald Trump could barely be distinguished in terms of record and ideology. 

Just in case anyone is confused, this part isn’t an attempt at satire, it is actually happening right now. It rather reminds one of the time former Egyptian president Hosni Mubarak won more votes in a re-run ‘free’ election than in the previous election he admitted rigging.

What is the conclusion? If the Bush/Blair years seemed to constitute the lunatics taking over the asylum, present events seem to imply that the children have taken over the nursery. There is something beyond disgraceful about the ‘Putin did it’ culture that has developed.  It is so childish, so petty. It reduces the complexities of international relations and the necessity of international cooperation to the tactics of a child who cannot take responsibility for his foolishness.

Whether one agrees with their policies or not, one misses the age of political giants. If Gulliver was an aging voter, he’d have by now entered the land of the Lilliputians.

This could explain why many people in Europe and North America who have little interest in the specifics of Russian politics let alone a profound knowledge of geo-politics, are increasingly impressed by Vladimir Putin. He happens to behave like a leader. To paraphrase a slogan from Barry Goldwater’s 1964 American Presidential campaign: Putin has a voice where others seem capable only of basking in echoes.

Contrary to western intuition, this situation does not make the Russians happy.  The Russians need and deserve competent and capable leaders to deal and ideally cooperate with in spite of any differences in interests.

Outside of certain regions of Eastern Europe which live in a state of historical and ideological paralysis, the ‘Putin did it’ line doesn’t work for most people. It doesn’t stop the bloodshed on the streets of Syria, Iraq, France and Germany, it doesn’t help the faltering Eurozone nor the plunging Pound, it does nothing to elevate US prestige in South America, The Middle East and East Asia where it is being increasingly eroded.

The real enemy of Russia, Europe, Britain and the US are the barbarians of ISIS.  When it comes to battles between children and barbarians, the outcome cannot be good.

Maybe in a few years when they say ‘Putin Did It’ they’ll be referring to the role he is playing in helping to destroy the most vile terrorist gang in modern memory.

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Europe Unveils “Special Purpose Vehicle” To Bypass SWIFT, Jeopardizing Dollar’s Reserve Status

Creating “a defensible banking architecture” is the end goal for the Europeans, China and Russia.

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Via Zerohedge


In a stunning vote of “no confidence” in the US monopoly over global payment infrastructure, one month ago Germany’s foreign minister Heiko Maas called for the creation of a new payments system independent of the US that would allow Brussels to be independent in its financial operations from Washington and as a means of rescuing the nuclear deal between Iran and the west.

Writing in the German daily Handelsblatt, Maas said “Europe should not allow the US to act over our heads and at our expense. For that reason it’s essential that we strengthen European autonomy by establishing payment channels that are independent of the US, creating a European Monetary Fund and building up an independent Swift system,” he wrote.

Maas said it was vital for Europe to stick with the Iran deal. “Every day the agreement continues to exist is better than the highly explosive crisis that otherwise threatens the Middle East,” he said, with the unspoken message was even clearer: Europe no longer wants to be a vassal state to US monopoly over global payments, and will now aggressively pursue its own “SWIFT” network that is not subservient to Washington’s every whim.

Many discounted the proposal as being far too aggressive: after all, a direct assault on SWIFT, and Washington, would be seen by the rest of the world as clear mutiny against a US-dominated global regime, and could potentially spark a crisis of confidence in the reserve status of the dollar, resulting in unpredictable, and dire, consequences.

However, despite the diplomatic consequences, Europe was intent on creating some loophole to the US ability to weaponize the global currency of account at will, something observed most recently as part of Trump’s latest sanctions on Iran, and as a result, late on Monday, the European Union said that it would establish a special payment channel to allow European and other companies to legally continue financial transactions with Iran while avoiding exposure to U.S. sanctions.

The move, as the WSJ notes, “is a direct rebuke of President Trump’s policy on Iran and his decision to withdraw from the nuclear deal in May,” and sets the stage for a confrontation between the U.S. and Europe over the treatment of Iran, the payment for Iran oil, and potentially, jeopardizing the reserve currency status of the dollar itself.

While keeping SWIFT as is, for now, the EU’s foreign-policy head Federica Mogherini side by side with Iran’s Foreign Minister Javad Zarif announced a “special purpose vehicle” jointly, in English and Farsi, after a meeting at the U.N. of the parties still committed to the deal—Iran, EU, U.K., France, Germany, Russia and China. In fact, everyone but the US.

EU foreign policy chief Federica Mogherini (r), speaking alongside Iranian Foreign Minister Mohammad Javad Zarif

According to Mogherini, the plan to create the SPV “will mean that EU member states will set up a legal entity to facilitate legitimate financial transactions with Iran, and this will allow European companies to continue trade with Iran” despite Trump’s opposition.

As Bloomberg’s Leonid Bershidsky explains, with Iran sanctions back, it is clear to the Europeans (as well as the Chinese and Russians) that any future transactions with Iran must go through entities insulated from the American financial system.

In a July 2018 report, Axel Hellman of the European Leadership Network think tank and Esfandyar Batmanghelidj of the Iranian company Bourse & Bazaar proposed “a new banking architecture” in response to the U.S. sanctions, relying on the existing system of “gateway banks,” such as the Hamburg-based Europaeisch-Iranische Handelsbank, and the European branches of private Iranian bank. “A further third category of gateway banks can be envisioned,” they wrote, “which would comprise of special purpose vehicles established by European governments, or as part of public-private partnerships in order to facilitate Iran trade and investment.”

The new plan focuses on this third option.

Mogherini further indicated that Germany, France and the U.K. would set up a multinational state-backed financial intermediary that would deal with companies interested in Iran transactions and with Iranian counter-parties. Such transactions, presumably in euros and pounds sterling, would not be transparent to American authorities. European companies dealing with the state-owned intermediary technically might not even be in violation of the U.S. sanctions as currently written.

And, in a potentially massive development, the system would be likely be open to Russia and China as well as it would enable the world’s economies to trade with each other, fully independent of SWIFT.

Europe would thus provide an infrastructure for legal, secure sanctions-busting — and a guarantee that the transactions would not be reported to American regulators.

That said, Washington would not be without recourse, although at that point, all the U.S. could do is sanction the participating countries’ central banks or SWIFT for facilitating the transactions (if the special purpose vehicle uses SWIFT, rather than ad hoc messaging).

That, Hellman and Batmanghelidj wrote, would be self-defeating: “There are two possible outcomes if these institutions proceed to work with Iran despite U.S. secondary sanctions. Either U.S. authorities fail to take enforcement action given the massive consequences for the operations and integrity of the American financial system, serving to “defang” the enforcement threats and reduce the risk of European self-sanctioning on the basis of fear, or U.S. authorities take such an enforcement action, a step that would only serve to accelerate European efforts to create a defensible banking architecture that goes beyond the Iran issue alone.”

Europe, naturally, needs a “neutral” pretext to implement this SPV, and that would be Brussels’ desire to continue transacting with Iran:

“We are not backing down [on the Iran nuclear agreement],” said a European diplomat. He said the speeches of European leaders at a Security Council meeting Mr. Trump is hosting on Wednesday on nonproliferation, including Iran, will reflect the Monday night statement.

Additionally, as basis for the potentially revolutionary development, the participants of the 2015 nuclear deal, formally known as the Joint Comprehensive Plan of Action or JCPOA, “underlined their determination to protect the freedom of their economic operators to pursue legitimate business with Iran.”

While the details of the SPV mechanism — which would be set up in future meetings with technical experts — were still to be determined, with the United States and the dollar dominating so much of global trade the statement said the new mechanism would “facilitate payments related to Iran’s exports (including oil) and imports, which will assist and reassure economic operators pursuing legitimate business with Iran.”

“In practical terms, this will mean that EU member states will set up a legal entity to facilitate legitimate financial transactions with Iran and this will allow European companies to continue to trade with Iran in accordance with European Union law and could be open to other partners in the world,” she told reporters.

As a result of Trump’s aggressive new sanctions on Iran, and potentially more sanctions after November as Trump hinted during his UN speech, European companies have been flocking out of Iran’s market and ending contracts to avoid risking U.S. sanctions.  Meanwhile, Iran – which has argued that the 2015 deal entitled the Islamic Republic to benefit from lifting of sanctions and to enter the world market – has seen its economy stumble, with the currency collapsing almost daily against the U.S. dollar since the U.S. exited the deal.

Telegraphing that Europe will continue cooperation with Iran despite US sanctions, Mogherini said Iran has remained fully committed to its obligations under the nuclear deal, as certified by a dozen reports from U.N.’s nuclear watchdog, the International Atomic Energy Agency. She also hailed the 2015 agreement as a major achievement for diplomacy and nonproliferation and “deeply regrets” what she called the unilateral withdrawal of the U.S. from the deal.

* * *

In any case, creating “a defensible banking architecture” may well be the end goal for the Europeans, China and Russia, anyway because, as noted above, Iran is merely a convenient pretext: after all, the nuclear agreement is one of the few things that unite the EU, China and Russia against the U.S.

But, as Bershidsky notes, “working to undermine the dollar’s global dominance isn’t ultimately about Iran at all. In his recent State of the European Union speech, European Commission President Jean-Claude Juncker called for strengthening the euro’s international role and moving away from traditional dollar invoicing in foreign trade.”

China and Russia have long sought the same thing, but it’s only with Europe, home of the world’s second biggest reserve currency, that they stand a chance of challenging American dominance.

While it remains to be seen if the “special purpose vehicle” would entice European companies such as France’s Total or Germany’s Daimler to get back into business with Iran remains to be seen, the optics of the move by the European Union together with China and Russia to defy the U.S. signaled continued criticism of the Trump administration for its decisions on Iran.

More importantly, it strikes at the heart of the current economic and financial system which is held together by the dollar. By providing an alternative, the global #resistance sets the stage for what potentially could be the ascendancy of other global reserve currencies, and/or a world of bilateral trade agreements which bypass both the US Dollar and Swift entirely, eliminating Washington’s “veto powers” on global trade.

Given U.S. law enforcement’s wide reach, there would still be a risk involved, and European governments may not be able to protect the companies from it. Some firms will be tempted to try the new infrastructure, however, and the public isn’t likely to find out if they do.  In any case, in response to Trump’s aggressive foreign policies and “weaponization” of the dollar, it is worthwhile for Europe, Russia and China to experiment with dollar-free business.

But this brings up the bigger point: no currency’s international dominance has lasted forever, and there’s no reason for the U.S. dollar to be the exception to this rule.

Meanwhile, as Bershidsky concludes, “Trump’s confidence in his ability to weaponize the dollar against adversaries and stubborn allies alike could eventually backfire for the U.S. as efforts to push the dollar off its pedestal grow ever more serious.”

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The Incredible Case Of The Skripal ‘Patsies’ Visas

How likely is it that the day before the professional assassination attempt, which involved handling an agent with which any contact could kill you, Boshirov and Petrov would prepare, not by resting, but by an all night drugs and sex session?

The Duran

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Authored by Craig Murray via CraigMurray.org.uk:


The Metropolitan Police made one statement in the Skripal case which is plainly untrue; they claimed not to know on what kind of visa Boshirov and Petrov were travelling. As they knew the passports they used, and had footage of them coming through the airport, that is impossible. The Border Force could tell them in 30 seconds flat.

To get a UK visa Boshirov and Petrov would have had to attend the UK Visa Application Centre in Moscow. There not only would their photographs be taken, but their fingerprints would have been taken and, if in the last few years, their irises scanned. The Metropolitan Police would naturally have obtained their fingerprints from the Visa Application.

One thing of which we can be certain is that their fingerprints are not on the perfume bottle or packaging found in Charlie Rowley’s home. We can be certain of that because no charges have been brought against the two in relation to the death of Dawn Sturgess, and we know the police have their fingerprints. The fact of there being no credible evidence, according to either the Metropolitan Police or the Crown Prosecution Service, to link them to the Amesbury poisoning, has profound implications.

Why the Metropolitan Police were so coy about telling us what kind of visa the pair held, points to a wider mystery. Why were they given the visas in the first place, and what story did they tell to get them? It is not easy for a Russian citizen, particularly an economically active male, to get past the UK Border Agency. The visa application process is very intrusive. They have to produce evidence of family and professional circumstances, including employment and address, evidence of funds, including at least three months of bank statements, and evidence of the purpose of the visit. These details are then actively checked out by the Visa Department.

If they had told the story to the visa section they told to Russia Today, that they were freelance traders in fitness products wanting to visit Salisbury Cathedral, they would have been refused a visa as being candidates for overstaying. They would have been judged not to have sufficiently stable employment in Russia to ensure they would return. So what story did Petrov and Boshirov give on their visa application, why were they given a visa, and what kind of visa? And why do the British authorities not want us to know the answer to these questions?

Which brings us to the claims of neo-conservative propaganda website Bellingcat. They claim together with the Russian Insider website to have obtained documentary evidence that Petrov and Boshirov’s passports were of a series issued only to Russian spies, and that their applications listed GRU headquarters as their address.

There are some problems with Bellingcat’s analysis. The first is that they also quote Russian website fontanka.ru as a source, but fontanka.ru actually say the precise opposite of what Bellingcat claim – that the passport number series is indeed a civilian one and civilians do have passports in that series.

Fontanka also state it is not unusual for the two to have close passport numbers – it merely means they applied together. On other points, fontanka.ru do confirm Bellingcat’s account of another suspected GRU officer having serial numbers close to those of Boshirov and Petrov.

But there is a bigger question of the authenticity of the documents themselves. Fontanka.ru is a blind alley – they are not the source of the documents, just commenting on them, and Bellingcat are just attempting the old trick of setting up a circular “confirmation”. Russian Insider is neither Russian nor an Insider. Its name is a false claim and it consists of a combination of western “experts” writing on Russia, and reprints from the Russian media. It has no track record of inside access to Russian government secrets or documents, and nor does Bellingcat.

What Bellingcat does have is a track record of shilling for the security services. Bellingcat claims its purpose is to clear up fake news, yet has been entirely opaque about the real source of its so-called documents.

MI6 have almost 40 officers in Russia, running hundreds of agents. The CIA has a multiple of that. They pool their information. Both the UK and US have large visa sections whose major function is the analysis of Russian passports, their types and numbers and what they tell about the individual.

I do not know if the two are agents or just tourists. But the claimed evidence they were agents is, if genuine, so obvious that the two would have been under close surveillance throughout their stay in the UK. If the official story is true, then the failures of the UK visa department and MI6 are abject and shameful. As is the failure to take simple precautions for the Skripals’ security, like the inexplicable absence of CCTV covering the house of Sergei Skripal, an important ex-agent and defector supposedly under British protection.

A further thought. We are informed that Boshirov and Petrov left a trace of novichok in their hotel bedroom. How likely is it, really, that, the day before the professional assassination attempt, which involved handling an agent with which any contact could kill you, Boshirov and Petrov would prepare, not by resting, but by an all night drugs and sex session? Would you really not want the steadiest possible hand the next day? Would you really invite a prostitute into the room with the novichok perfume in it, and behave in a way that led to complaints and could have brought you to official notice?

Is it not astonishing that nobody in the corporate and state media has written that this behaviour is at all unlikely, while scores of “journalists” have written that visiting Salisbury as a tourist, and returning the next day because the visit was ruined by snow, would be highly unlikely?

To me, even more conclusively, we were informed by cold war propagandists like ex White House staffer Dan Kaszeta that the reason the Skripals were not killed is that novichok is degraded by water. To quote Kaszeta “Soap and water is quite good at decontaminating nerve agents”.

In which case it is extremely improbable that the agents handling the novichok, who allegedly had the novichok in their bedroom, would choose a hotel room which did not have an en suite bathroom. If I spilt some novichok on myself I would not want to be queuing in the corridor for the shower. The GRU may not be big on health and safety, but the idea that their agents chose not to have basic washing facilities available while handling the novichok is wildly improbable.

The only link of Boshirov and Petrov to the novichok is the trace in the hotel room. The identification there of a microscopic trace of novichok came from a single swab, all other swabs were negative, and the test could not be repeated even on the original positive sample. For other reasons given above, I absolutely doubt these two had novichok in that bedroom. Who they really are, and how much the security services knew about them, remain open questions.

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Russia’s Economy Little Harmed by West’s Sanctions

Putin has been succeeding despite what the US aristocracy (and its allied aristocracies in Europe and Arabia) have been throwing to weaken Russia.

Eric Zuesse

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Originally posted at strategic-culture.org:


Despite Barack Obama’s economic sanctions against Russia, and the plunge in oil prices that King Saud agreed to with Obama’s Secretary of State John Kerry on 11 September 2014, the economic damages that the US and Saudis have aimed against a particular oil-and-gas giant, Russia, have hit mostly elsewhere — at least till now.

This has been happening while simultaneously Obama’s violent February 2014 coup overthrowing Ukraine’s democratically elected pro-Russian President Viktor Yanukovych (and the head of the ‘private CIA’ firm Stratfor calls it “the most blatant coup in history”) has caused Ukraine’s economy to plunge even further than Russia’s, and corruption in Ukraine to soar even higher than it was before America’s overthrow of that country’s final freely elected nationwide government, so that Ukraine’s economy has actually been harmed far more than Russia’s was by Obama’s coup in Ukraine and Obama’s subsequent economic sanctions against Russia (sanctions that are based on clear and demonstrable Obama lies but that continue and even get worse under Trump).

Bloomberg News headlined on February 4th of 2016, “These Are the World’s Most Miserable Economies” and reported the “misery index” rankings of 63 national economies as projected in 2016 and 60 as actual in 2015 — a standard ranking-system that calculates “misery” as being the sum of the unemployment-rate and the inflation-rate. They also compared the 2016 projected rankings to the 2015 actual rankings.

Top rank, #1 both years — the most miserable economy in the world during 2015 and 2016 — was Venezuela, because of that country’s 95% dependence upon oil-export earnings (which crashed when oil-prices plunged). The US-Saudi agreement to flood the global oil market destroyed Venezuela’s economy.

#2 most-miserable in 2015 was Ukraine, at 57.8. But Ukraine started bouncing back so that as projected in 2016 it ranked #5, at 26.3. Russia in 2015 was #7 most-miserable in 2015, at 21.1, but bounced back so that as projected in 2016 it became #14 at 14.5.

Bloomberg hadn’t reported misery-index rankings for 2014 showing economic performances during 2013, but economist Steve H. Hanke of Johns Hopkins University did, in his “Measuring Misery Around the World, May 2014,” in the May 2014 GlobeAsia, ranking 90 countries; and, during 2013 (Yanukovych’s final year as Ukraine’s President before his being forced out by Obama’s coup), Ukraine’s rank was #23 and its misery-index was 24.4. Russia’s was #36 and its misery index was 19.9. So: those can be considered to be the baseline-figures, from which any subsequent economic progress or decline (after Obama’s 2014 Ukrainian coup) may reasonably be calculated. Hanke’s figures during the following year, 2014, were reported by him at Huffington Post, “The World Misery Index: 108 Countries”, and by UAE’s Khaleej Times, “List of Most Miserable Countries” (the latter falsely attributing that ranking to Cato Institute, which had merely republished Hanke’s article). In 2014, Ukraine’s misery-index, as calculated by Hanke, was #4, at 51.8. That year had 8 countries above 40 in Hanke’s ranking. Russia was #42 at 21.42. So: Russia’s rank had improved, but, because of the globally bad economy, Russia’s absolute number was slightly worse (higher) than it had been before Obama’s coup in Ukraine and subsequent sanctions against Russia. By contrast, Ukraine’s rank had suddenly gotten far worse, #4 at 51.80 in 2014, after having been #23 at 24.4 in 2013.

The figures in Bloomberg for Russia were: during 2015, #7 with a misery-index of 21.1; and projected during 2016, #14 with a misery-index of 14.5; so, Bloomberg too showed a 2015-2016 improvement for Russia, and not only for Ukraine (where in the 2016 projection it ranked #5, at 26.3, a sharp improvement after the horrendous 2015 actual numbers).

“Hanke’s Annual Misery Index — 2017” in Forbes, showed 98 countries, and Venezuela was still #1, the worst; Ukraine was now #9 at 36.9; and Russia was #36 at 18.1.

Thus: whereas Russia was economically sunningly stable at #36 from start to finish throughout the entire five-year period 2013-2017, starting with a misery-index of 19.9 in 2013 and ending with 18.1 in 2017, Ukraine went from a misery-index of 24.4 in 2013 to 36.9 in 2017 — and worsening its rank from #23 to #9. During that five-year period Ukraine’s figure peaked in the year of Obama’s coup at 57.8. So, at least Ukraine’s misery seems to be heading back downward in the coup’s aftermath, though it’s still considerably worse than before the coup. But, meanwhile, Russia went from 19.9 to 18.1 — and had no year that was as bad as Ukraine’s best year was during that period of time. And, yet: that coup and the economic sanctions and the US-Saudi oil-agreement were targeted against Russia — not against Ukraine.

If the US were trying to punish the people of Ukraine, then the US coup in Ukraine would have been a raving success; but actually Obama didn’t care at all about Ukrainians. He cared about the owners of America’s weapons-making firms and of America’s extractive firms. Trump likewise.

During that same period (also using Hanke’s numbers) the United States went from #71 at 11.0 in 2013, to #69 at 8.2 in 2017. US was stable.

Saudi Arabia started with #40 18.9 during 2013, to #30 at 20.2 in 2017. That’s improvement, because the Kingdom outperformed the global economy.

During the interim, and even in the years leading up to 2014, Russia had been (and still is) refocusing its economy away from Russia’s natural resources and toward a broad sector of high technology: military R&D and production.

On 15 December 2014, the Stockholm International Peace Research Institute headlined, “Sales by Largest Arms Companies Fell Again in 2013, but Russian Firms’ Sales Continued Rising,” and reported, “Sales by companies headquartered in the United States and Canada have continued to moderately decrease, while sales by Russian-based companies increased by 20 per cent in 2013.”

The following year, SIPRI bannered, on 14 December 2015, “Global Arms Industry: West Still Dominant Despite Decline,” and reported that, “Despite difficult national economic conditions, the Russian arms industry’s sales continued to rise in 2014. … ‘Russian companies are riding the wave of increasing national military spending and exports. There are now 11 Russian companies in the Top 100 and their combined revenue growth over 2013–14 was 48.4 per cent,’ says SIPRI Senior Researcher Siemon Wezeman. In contrast, arms sales of Ukrainian companies have substantially declined. … US companies’ arms sales decreased by 4.1 per cent between 2013 and 2014, which is similar to the rate of decline seen in 2012–13. … Western European companies’ arms sales decreased by 7.4 per cent in 2014.”

This is a redirection of the Russian economy that Vladimir Putin was preparing even prior to Obama’s war against Russia. Perhaps it was because of the entire thrust of the US aristocracy’s post-Soviet determination to conquer Russia whenever the time would be right for NATO to strike and grab it. Obama’s public ambivalence about Russia never persuaded Putin that the US would finally put the Cold War behind it and end its NATO alliance as Russia had ended its Warsaw Pact back in 1991. Instead, Obama continued to endorse expanding NATO, right up to Russia’s borders (now even into Ukraine) — an extremely hostile act.

By building the world’s most cost-effective designers and producers of weaponry, Russia wouldn’t only be responding to America’s ongoing hostility — or at least responding to the determination of America’s aristocracy to take over Russia, which is the world’s largest trove of natural resources — but would also expand Russia’s export-earnings and international influence by selling to other countries weaponry that’s less-burdened with the costs of sheer corruption than are the armaments that are being produced in what is perhaps the world’s most corrupt military-industrial complex: America’s. Whereas Putin has tolerated corruption in other areas of Russia’s economic production (figuring that those areas are less crucial for Russia’s future), he has rigorously excluded it in the R&D and production and sales of weaponry. Ever since he first came into office in 2000, he has transformed post-Soviet Russia from being an unlimitedly corrupt satellite of the United States under Boris Yeltsin, to becoming truly an independent nation; and this infuriates America’s aristocrats (who gushed over Yeltsin).

The Russian government-monopoly marketing company for Russia’s weapons-manufacturers, Rosoboronexport, presents itself to nations around the world by saying: “Today, armaments and military equipment bearing the Made in Russia label protect independence, sovereignty and territorial integrity of dozens of countries. Owing to their efficiency and reliability, Russian defense products enjoy strong demand on the global market and maintain our nation’s leading positions among the world’s arms exporters. For the past several years, Russia has consistently ranked second behind the United States as regards arms exports.” That’s second-and-rising, as opposed to America’s first-and-falling.

The American aristocracy’s ever-growing war against Russia posed and poses to Putin two simultaneous challenges: both to reorient away from Russia’s natural resources, which the global aristocracy wants to grab, and also to reorient toward the area of hi-tech in which the Soviets had built a basis from which Russia could become truly cost-effective in international commerce, so as to, simultaneously, increase Russia’s defensive capability against an expanding NATO, while also replacing some of Russia’s dependence upon the natural resources that the West’s aristocrats want to steal.

In other words: Putin designed a plan to meet two challenges simultaneously — military and economic. His primary aim is to protect Russia from being grabbed by the American and Saudi aristocrats, via America’s NATO and the Sauds’ Gulf Cooperation Council and other alliances (which are trying to take over Russia’s ally Syria — Syria being a crucial location for pipelining Arab royals’ oil-and-gas into Europe, the world’s largest energy-market).

In addition, the hit to Russia’s economic growth-rate from the dual-onslaught of Obama’s sanctions and the plunging oil prices hasn’t been too bad. The World Bank’s April 2015 “Russia Economic Report” predicted: “Growth prospects for 2015-2016 are negative. It is likely that when the full effects of the two shocks become evident in 2015, they will push the Russian economy into recession. The World Bank baseline scenario sees a contraction of 3.8 percent in 2015 and a modest decline of 0.3 percent in 2016. The growth spectrum presented has two alternative scenarios that largely reflect differences in how oil prices are expected to affect the main macro variables.”

The current (as of 15 February 2016) “Russia GDP Annual Growth Rate” at Trading Economics says: “The Russian economy shrank 3.8 percent year-on-year in the fourth quarter of 2015, following a 4.1 percent contraction in the previous period, according to preliminary estimates from the Economic Development Minister Alexey Ulyukayev. It is the worst performance since 2009 [George W. Bush’s global economic crash], as Western sanctions and lower oil prices hurt external trade and public revenues.” The current percentage as of today, 17 September 2018, is 1.9%, after having plunged down from 2.2% in late 2017, to 0.9% in late 2017; so, it is rebounding.

The World Bank’s April 2015 “Russia Economic Report” went on to describe “The Government Anti-Crisis Plan”:

On January 27, 2014, the government adopted an anti-crisis plan with the goal to ensure sustainable economic development and social stability in an unfavorable global economic and political environment.

It announced that in 2015–2016 it will take steps to advance structural changes in the Russian economy, provide support to systemic entities and the labor market, lower inflation, and help vulnerable households adjust to price increases. To achieve the objectives of positive growth and sustainable medium-term macroeconomic development the following measures are planned:

• Provide support for import substitution and non-mineral exports;

• Support small and medium enterprises by lowering financing and administrative costs;

• Create opportunities for raising financial resources at reasonable cost in key economic sectors;

• Compensate vulnerable households (e.g., pensioners) for the costs of inflation;

• Cushion the impact on the labor market (e.g. provide training and increase public works);

• Optimize budget expenditures; and

• Enhance banking sector stability and create a mechanism for reorganizing systemic companies.

So: Russia’s anti-crisis plan was drawn up and announced on 27 January 2014, already before Yanukovych was overthrown, even before Obama’s agent Victoria Nuland on 4 February 2014 instructed the US Ambassador in Ukraine whom to have appointed to run the government when the coup would be completed (“Yats,” who did get appointed). Perhaps, in drawing up this plan, Putin was responding to scenes from Ukraine like this. He could see that what was happening in Ukraine was an operation financed by the US CIA. He could recognize what Obama had in mind for Russia.

The “Russia Economic Report, May 2018: Modest Growth Ahead” says:

Global growth continued its 2017 momentum in early 2018. Global growth reached a stronger than- expected 3 percent in 2017 — a notable recovery from a post-crisis low of 2.4 percent in 2016. It is currently expected to peak at 3.1 percent in 2018. Recoveries in investment, manufacturing, and trade continue as commodity-exporting developing economies benefit from firming commodity prices (Figure 1a). The improvement reflects a broad-based recovery in advanced economies, robust growth in commodity-importing Emerging Markets and Developing Economies (EMDEs), and an ongoing rebound in commodity exporters. Growth in China – and important trading partner for Russia – is expected to continue its gradual slowdown in 2018 following a stronger than-expected 6.9 percent in 2017.

Putin’s economic plan has softened the economic blow upon the masses, even while it has re-oriented the economy toward what would be the future growth-areas.

The country that Putin in 2000 had taken over and inherited from the drunkard Yeltsin (so beloved by Western aristocrats because he permitted them to skim off so much from it) was a wreck even worse than it had been when the Soviet Union ended. Putin immediately set to work to turn it around, in a way that could meet those two demands.

Apparently, Putin has been succeeding — now even despite what the US aristocracy (and its allied aristocracies in Europe and Arabia) have been throwing to weaken Russia. And the Russian people know it.

PS: The present reporter is an American, and used to be a Democrat, not inclined to condemn Democratic politicians, but Obama’s grab for Russia was not merely exceedingly dangerous for the entire world, it is profoundly unjust, it is also based on his (and most Republicans’) neoconservative lies, and so I don’t support it, and I no longer support Obama or his and the Clintons’ Democratic Party, at all. But this certainly doesn’t mean that I support the Republican Party, which is typically even worse on this (and other matters) than Democratic politicians are. On almost all issues, I support Bernie Sanders, but I am not a part of anyone’s political campaign, in any way

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