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Three day weekend Grexit? Mark your calendar for May 2nd, 9th or 16th

When the Grexit happens, it will be on a weekend. The banks will be closed, parliament will be called into emergency session, and a packet of laws will be passed.

Alex Christoforou

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Post originally appeared on The Automatic Earth Blog.

Yes, more Greece, ever more Greece. Well, the focus is still very much there. It’s not the only topic, obviously, China warrants interest too, certainly with things like Tyler Durden quoting Cornerstone Macro as saying China’s true economic growth rate was just 1.6% in Q1 2015, not the official government number of 7%. Never trust anyone, especially a government, that consistently meets or beats its predictions. With housing prices falling the way they have, -6% or thereabouts, and over 70% of Chinese private investment in real estate, it’s hard to see how a 7% GDP growth number could pass scrutiny. Sure, there’s the stock market bubble, but even then.

GreeceRepayments2015-300But for now back to Athens. Or Washington, actually, where Yanis Varoufakis finds himself. From what we can gather on his schedule, Varoufakis has (or has had) meetings with Obama and Lagarde on Thursday, and with Mario Draghi, Jack Lew and Wolfgang Schaeuble on Friday.

Also on Friday, he’s meeting sovereign debt lawyer Lee Buchheit, who’s a partner at New York law firm Cleary Gottlieb [..Steen & Hamilton], and has helped restructure debt for various countries. The Guardian, back in 2013 (how times have changed!), portrayed Buchheit as the ‘fairy godmother to finance ministers in distress’:

This is the man who stands up to the vulture funds – so named because they buy up the debt of desperately poor countries in order to chase them through the courts for repayment. So it is something of a surprise to meet a slight, mild-mannered lawyer, with more than a whiff of academia about him.

He insists he does not make a moral judgement in choosing who he acts for, but rather enjoys working for the debtor nations. “It’s just more fun,” he says. “If you represent the lender, your client is tiresomely saying things to you like, ‘Why don’t they just pay us the money back?’ When you’re on the debtor side, you can say, ‘If you want to get it back, why did you give it to us?’

In view of that last quote, it may be wise to once again reiterate that only about 8% of the bailout funds Athens is now on the hook for, actually went to Greece; the other 92% was used to save major European and American banks. As I said before, this has been a political decision, not an economic one. In that vein , we can take a look at the following from John Ward at the Slog, dated March 26:

At this link is an official EU release whose sole concern is the subject of ‘contingent liabilities’ entered into by EU member states. [..] the EU release in this instance contains some blockbuster facts….and adds another piece to the eurozone jigsaw of hypocritical mendacity. Contingent liabilities are often referred to as Shadow Debt: if you’re lucky, they won’t become an eventuality. But as the EU table shows, given the parlous nature of the ezone banking sector, every one of the liabilities is a racing certainty.

We’ve all been asking why Germany ignored the EC bailin directive last week and bailed out a small Bavarian Bank. The answer is simple: not to do so would’ve been illegal under BundesRepublik law, because Berlin had promised so to do. On this basis, while at first sight German national debt is a ‘mere’ 70% of GDP, add the promises it has made to its banks, and the number comes in at a horrific 222%. Not far behind comes the Netherlands with a similar ‘official’ national debt at 73% of GDP. But the contingent liabilities are 115%…making a pretty nasty mountain of 188%.

The Number One and Number Two top contingent liability millstones in the EU are – by miles – Germany and the Netherlands. Now let me see…who are the two chaps working hardest to stop the Greeks and their contagious banks from going their own way? Why, none other than German finance minister Wolfgang Schäuble, and Dutch finance minister Jeroen René Victor Anton Dijsselbloem. The third prong of Troika2 is of course the ECB’s Italian Mario Draghi. Without any contingencies at all, Italy’s national debt is 132.6% of GDP. Add its 45.5% of contingents, and this too adds up to 178.1% of GDP.

Before you know it, things are no longer what they seem. If you were Lee Buchheit, you might want to argue that Greece is being thrown to the lions and the wolves because Germany and Holland bailed out their bankrupt banking systems, and vowed to keep doing it.

That would make it very hard to imagine them saving Greece today, since to do that, they would risk their own banks, which they bailed out with trillions of their own taxpayers’ money. It would be political suicide. It’s much easier to tell those taxpayers that it’s Greece that’s at fault, not their own heroic leaders (I say heroic because that’s how Bernanke portrays himself in his ‘Courage to Act’ fictional fluff).

So when, oh when, could the Grexit come? Daniel Roberts at Raas Consulting thinks he might have part of the answer:

Why The Grexit Is Inevitable – and some singing PIGS

One thing in common for almost all of my Pinewood International Schools (TiHi to some) class of ’78 is that we left. Many still live in Greece and in Thessaloniki or have returned, and they are closest to the pain. The real pain of the past decade, that has destroyed wealth and hope. Unemployment is running at levels not see in Europe since after the war, and at levels that encouraged the socialist-fascist civil wars of the 1930s. Those did not end well.

But that does not explain why the Grexit is inevitable, and why it will happen very soon.
1) This is what the Greek people voted for. No, they did not vote to stay in the Euro, they voted for the party that said it would reduce the debt and meet pension obligations. The Greek people and voters are not stupid. They knew this could only happen by either the rest of Europe bailing out Greece again, or by leaving the Euro.
2) The Greek people know perfectly well that Europe is not going to bail them out, because to do so will only set everyone up for the next bailout.
3) The Greek people, and the rest of Europe, know full well that the debt will never be repaid, and that the Troika are now acting as nothing better than the enforcers of loan sharks.
4) Syriza knows that it had six months before the voters would throw them out, and once out, Syriza would never come back.
5) The Greeks needed to show “good faith” in actually attempting to negotiate a resolution with the Troika. This has now been done, and is failing.
6) The demand for reparations from Germany is designed not to actually extract the reparations, but to anger the Germans to the point that they will block any compromise that Syriza would have been required to accept.

The Greek government, elected by a battered and exploited Greek people, has been establishing the conditions that will give them the moral high ground (in the eyes of their voters) needed to actually leave the Euro. Having set the conditions, when will it happen? I’m still guessing May 9th. Why? Greece will leave the Euro, and they will do it sooner than later. They’ve made the April payment, but simply do not have the money for the May or June payments, and they cannot pass the legislation required by Europe and the Germans and stay in power. That gives us a late May or June date. So why earlier?

Capital flight. Imposing currency controls will be a fundamental element of any Grexit. Accounts will be frozen, and any money in accounts will be re-denominated in New Drachmas. Once the bank accounts are unfrozen, the residual, former Euros will now be worth whatever the New Drachma has dropped to, and the drop will be significant, over–correcting to the downside. Once it is accepted that the Grexit is coming and there will be no last minute deal, and with memories of Cyprus too fresh in every Greek’s mind, the money will flow out of the country. Not just corporate money (most of which is probably off-share already) but any remaining personal money in bank accounts. So Greece has to move before the coming Grexit is perceived as inevitable, and the money starts to flow out.

Weekend event. When the Grexit happens, it will be on a weekend. The banks will be closed, parliament will be called into emergency session, and a packet of laws will be passed. As this needs to be on a Saturday to avoid wholesale capital flight the moment that parliament is called into session, were it a weekday. This leaves only a few possible dates. And where there are few possible dates, I’m punting on the earlier date, so earlier in May. And looking at the calendar, that leaves us with May 2nd, 9th or 16th. My own guess is that the 2nd is too soon, and the 16th is too late. That leaves me guessing May 9th.

WebThe top graph on the left side of my essay shows all Greek payments due until September. It comes down to about €13 billion in the next 5 months. The country is desperately waiting for a last €7.2 billion bailout tranche the lenders won’t pay out, but it wouldn’t even make that much difference. So when will the drama come to an end? Turning to the second graph, we see specifics. The next payments are:

• April 17 and 20: a combined total of €273.5 million in interest payments to the ECB.

• May 1: €195.1 million to the IMF.

• May 12: €744.9 million to the IMF.

It’s hard to see how Greece can even attempt to make that last payment. Let alone the €1.61 billion due in June (numbers on both graphs don’t add up exactly), or the billions after that.

The big questions concern not just the difference between on the one hand, economic issues and on the other, political ones. Syriza doesn’t have the mandate to take Greece out of the eurozone. That is a huge point. But neither does it have the mandate to give in to the troika’s insistence on pensions cuts. At a certain moment, it may come down to what can be explained to the Greek people, and how well it can be explained. This explanation will almost certainly have to come after the fact, since holding a referendum pre-Grexit would carry far too much potential risk of uncontrolled demolition of the entire Greek economy and banking system.

Tsipras and Varoufakis are not the most enviable people out there at the moment. They have hard choices to make. Still, in the end, running a society, a nation, or a union of nations, cannot be just a matter of balancing your books. That can never be your bottom line. You’re talking about real people, not mere entries in a ledger. Schaeuble and other European politicians keep bragging about the ‘success’ of Greek government policies before Syriza came to power, even as it’s been well documented that many Greek children go hungry and people have no access to health care. How is that a success?

That attitude may be the most valuable argument Syriza has available to it in its upcoming discussions with its voters. Whether these discussions take place before or after a Grexit is hard to say at this point. But Daniel Roberts’ reasoning towards a May 9 event certainly has some logic to it. We may still hope that the troika doesn’t put Syriza into a position of an impossible fork in the road, but right now it doesn’t look good, it looks like they’re getting ready to sacrifice Greece on their pagan altars.

To top off the cynicism involved Bloomberg runs an article today entitled Germany: Has Any Country Ever Had It So Good?. At the same time, a few hundred miles to the south east, children don’t have enough to eat. The European Union sure is a great place to be. What a success story! Pity it’s about to end.

References:

http://www.theautomaticearth.com/2015/04/is-may-9-the-grexit-date/

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The real reason Western media & CIA turned against Saudi MBS

The problem with MBS isn’t that he is a mass murdering war criminal, it is that he is too “independent” for the United States’ liking.

RT

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Via RT…


Forces are aligning against Saudi Arabia’s Crown Prince, lead by elements within the CIA and strong players in the mainstream media. But what is really behind this deterioration in relationship, and what are its implications?

Following the brutal murder of Washington Post columnist Jamal Khashoggi, western media and various entities, including the CIA, appear to have turned their back on Saudi Crown Prince Mohammad Bin Salman (MBS). In response to the scandal, the Guardian released a video which its celebutante, Owen Jones, captioned“Saudi Arabia is one of the biggest threats on Earth. Time to stop propping up its repulsive regime.”

The Guardian was not alone in its condemnation. “It’s high time to end Saudi impunity,” wrote Hana Al-Khamri in Al-Jazeera. “It’s time for Saudi Arabia to tell the truth on Jamal Khashoggi,” the Washington Post’s Editorial Board argued. Politico called it “the tragedy of Jamal Khashoggi.”

Even shadowy think-tanks like the Council on Foreign Relations (CFR) and the Atlantic Council released articles criticising Saudi Arabia in the wake of Khashoggi’s death.

A number of companies began backing away from Saudi money after the journalist’s death, including the world’s largest media companies such as the New York Times, the Economist’s editor-in-chief Zanny Minton Beddoes, Arianna Huffington, CNN, CNBC, the Financial Times, Bloomberg, Google Cloud CEO, just to name a few.

The CIA concluded that MBS personally ordered Khashoggi’s death, and was reportedly quite open in its provision of this assessment. Antonio Guterres, secretary-general of the UN, also took time out of his schedule to express concern over Saudi Arabia’s confirmation of the killing.

At the time of the scandal, former CIA director John Brennan went on MSNBC to state that the Khashoggi’s death would be the downfall of MBS. Furthermore, the US Senate just voted in favour of ending American involvement in Saudi Arabia’s war in Yemen (a somewhat symbolic victory, though this is a topic for another article), but nonetheless was a clear stab at MBS personally.

The only person who appeared to continue to uphold America’s unfaltering support for MBS, even after all the publicly made evidence against MBS, was the US president himself. So after years of bombarding Yemen, sponsoring terror groups across the Middle East, Asia, the Pacific and beyond, why is it only now that there has been mounting opposition to Saudi Arabia’s leadership? Let’s just bear in mind that western media had spent years investing in a heavy PR campaign to paint MBS as a “reformer.”

Former national security adviser under Barack Obama’s second term, Susan Rice, wrote an article in the New York Times, in which she called MBS a “partner we can’t depend on.” Rice concludes that MBS is “not and can no longer be viewed as a reliable partner of the United States and our allies.” But why is this? Is it because MBS is responsible for some of the most egregious human rights abuses inside his own kingdom as well as in Yemen? Is it because of MBS’ support for groups such as ISIS and al-Qaeda? No, according to Rice, we “should not rupture our important relationship with the kingdom, but we must make it clear it cannot be business as usual so long as Prince Mohammad continues to wield unlimited power.”

One will observe that the latter segment of Rice’s article almost mirrors former CIA director Brennan’s word on MSNBC word for word who stated that:

“I think ultimately this is going to come out. And it’s very important for us to maintain the relations with Saudi Arabia. And if it’s Mohammed bin Salman who’s the cancer here, well, we need to be able to find ways to eliminate the cancer and to move forward with this relationship that is critical to regional stability and our national interests.”

In reality, this is probably the issue that western media and government advisors have taken up with MBS. Aside from the fact he allegedly held a huge hand in the brutal murder of one of their own establishment journalists (Saudi Arabia reportedly tortured and killed another journalist not long after Khashoggi, but western media was eerily silent on this incident) MBS is not opposed for his reckless disregard for human rights. With insight into Rice’s mindset, we actually learn that if the US were to punish MBS, he would be likely to “behave more irresponsibly to demonstrate his independence and exact retribution against his erstwhile Western partners.”

You see, the problem with MBS isn’t that he is a mass murdering war criminal, it is that he is too “independent” for the United States’ liking.

Last week, Saudi Arabia and the other major oil producers met in Vienna at the year’s final big OPEC meeting of the year. As Foreign Policy notes, Saudi Arabia remains the largest oil producer inside OPEC but has to contend with the US and Russia who are “pumping oil at record levels.” Together, the three countries are the world’s biggest oil producers, meaning any coordinated decision made between these three nations can be somewhat monumental.

However, it appears that one of these three nations will end up drawing the short end of the stick as the other two begin forming a closer alliance. As Foreign Policy explains:

“But Saudi Arabia has bigger game in mind at Vienna than just stabilizing oil prices. Recognizing that it can’t shape the global oil market by itself anymore but rather needs the cooperation of Russia, Saudi Arabia is hoping to formalize an ad hoc agreement between OPEC and Moscow that began in 2016, a time when dirt-cheap oil also posed a threat to oil-dependent regimes. That informal agreement expires at the end of the year, but the Saudis would like to make Russia’s participation with the cartel more permanent.”

Russian officials have been signalling their intention to formalise this agreement for quite some time now. Given the hysteria in western media about any and all things Russian, it is not too much of a stretch to suggest that this is the kind of news that is not sitting too well with the powers-that-be.

Earlier this year, Russia and Saudi Arabia announced that it would “institutionalize” the two-year-old bilateral agreement to coordinate oil production targets in order to maintain an edge on the global market.

While US president Trump has been supportive and incredibly defensive of MBS during this “crisis”, the truth is that the US only has itself to blame. It was not all too long ago that Trump announced that he had told Saudi King Salman that his kingdom would not last two weeks without US support.

Saudi Arabia is learning for themselves quite quickly that, ultimately, it may pay not to have all its eggs in one geopolitical superpower basket.

Saudi Arabia has been increasingly interested in Moscow since King Salman made a historic visit to Moscow in October 2017. While Trump has openly bragged about his record-breaking arms deals with the Saudis, the blunt truth is that the $110 billion arms agreements were reportedly only ever letters of interest or intent, but not actual contracts. As such, the US-Saudi arms deal is still yet to be locked in, all the while Saudi Arabia is negotiating with Russia for its S-400 air defence system. This is, as the Washington Post notes, despite repeated US requests to Saudi Arabia for it disavow its interest in Russia’s arms.

The economic threat that an “independent” Saudi Arabia under MBS’ leadership poses to Washington runs deeper than meets the eye and may indeed have a domino effect. According to CNN, Russia and Saudi Arabia “are engaged in an intense battle over who will be the top supplier to China, a major energy importer with an insatiable appetite for crude.”

The unveiling of China’s petro-yuan poses a major headache for Washington and its control over Saudi Arabia as well.According to Carl Weinberg, chief economist and managing director at High-Frequency Economics, China will “compel”Saudi Arabia to trade oil in Chinese yuan instead of US dollars. One must bear in mind that China has now surpassed the US as the “biggest oil importer on the planet,” these direct attacks on the US dollar will have huge implications for its current world reserve status.

If Saudi Arabia jumps on board China’s petro-yuan, the rest of OPEC will eventually follow, and the US might be left with no choice but to declare all of these countries in need of some vital freedom and democracy.

Therefore, ousting MBS and replacing him with a Crown Prince who doesn’t stray too far from the tree that is US imperialism may put a dent in pending relationships with Saudi Arabia and Washington’s adversaries, Russia and China.

Once we get over the certainty that the US media and the CIA are not against MBS for his long-list of human rights abuses, the question then becomes: why – why now, and in this manner, have they decided to put the spotlight on MBS and expose him exactly for what he is.

Clearly, the driving force behind this media outrage is a bit more complex than first meets the eye.

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The Indiscreet Charm of the Gilets Jaunes

Nothing scares the Identity Politics Left quite like an actual working class uprising.

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Authored (satirically) by CJ Hopkins via The Unz Review:


So it appears the privatization of France isn’t going quite as smoothly as planned. As I assume you are aware, for over a month now, the gilets jaunes (or “yellow vests”), a multiplicitous, leaderless, extremely pissed off, confederation of working class persons, have been conducting a series of lively protests in cities and towns throughout the country to express their displeasure with Emmanuel Macron and his efforts to transform their society into an American-style neo-feudal dystopia. Highways have been blocked, toll booths commandeered, luxury automobiles set on fire, and shopping on the Champs-Élysées disrupted. What began as a suburban tax revolt has morphed into a bona fide working class uprising.

It took a while for “the Golden Boy of Europe” to fully appreciate what was happening. In the tradition of his predecessor, Louis XVI, Macron initially responded to the gilets jaunes by inviting a delegation of Le Monde reporters to laud his renovation of the Elysée Palace, making the occasional condescending comment, and otherwise completely ignoring them. That was back in late November. Last Saturday, he locked down central Paris, mobilized a literal army of riot cops, “preventatively arrested” hundreds of citizens, including suspected “extremist students,” and sent in the armored military vehicles.

The English-language corporate media, after doing their best not to cover these protests (and, instead, to keep the American and British publics focused on imaginary Russians), have been forced to now begin the delicate process of delegitimizing the gilets jaunes without infuriating the the entire population of France and inciting the British and American proletariats to go out and start setting cars on fire. They got off to a bit of an awkward start.

For example, this piece by Angelique Chrisafis, The Guardian‘s Paris Bureau Chief, and her Twitter feed from the protests last Saturday. Somehow (probably a cock-up at headquarters), The Guardian honchos allowed Chrisafis to do some actual propaganda-free reporting (and some interviews with actual protesters) before they caught themselves and replaced her with Kim Willsher, who resumed The Guardian‘s usual neoliberal establishment-friendly narrative, which, in this case, entailed dividing the protesters into “real” gilets jaunes and “fake” gilet jaunes, and referring to the latter fictional group as “thuggish, extremist political agitators.”

By Sunday, the corporate media were insinuating that diabolical Russian Facebook bots had brainwashed the French into running amok, because who else could possibly be responsible? Certainly not the French people themselves! The French, as every American knows, are by nature a cowardly, cheese-eating people, who have never overthrown their rightful rulers, or publicly beheaded the aristocracy. No, the French were just sitting there, smoking like chimneys, and otherwise enjoying their debt-enslavement and the privatization of their social democracy, until they unsuspectingly logged onto Facebook and … BLAMMO, the Russian hackers got them!

Bloomberg is reporting that French authorities have opened a probe into Russian interference (in the middle of which report, for no apparent reason, a gigantic photo of Le Pen is featured, presumably just to give it that “Nazi” flavor). According to “analysis seen by The Times,” Russia-linked social media accounts have been “amplifying” the “chaos” and “violence” by tweeting photos of gilets jaunes who the French police have savagely beaten or gratuitiously shot with “less-than-lethal projectiles.” “Are nationalists infiltrating the yellow vests?” the BBC Newsnight producers are wondering. According to Buzzfeed’s Ryan Broderick, “a beast born almost entirely from Facebook” is slouching toward … well, I’m not quite sure, the UK or even, God help us, America! And then there’s Max Boot, who is convinced he is being personally persecuted by Russian agents like Katie Hopkins, James Woods, Glenn Greenwald, and other high-ranking members of a worldwide conspiracy Boot refers to as the “Illiberal International” (but which regular readers of my column will recognize as the “Putin-Nazis“).

And, see, this is the problem the corporate media (and other staunch defenders of global neoliberalism) are facing with these gilets jaunes protests. They can’t get away with simply claiming that what is happening is not a working class uprising, so they have been forced to resort to these blatant absurdities. They know they need to delegitimize the gilets jaunes as soon as possible — the movement is already starting to spread — but the “Putin-Nazi” narrative they’ve been using on Trump, Corbyn, and other “populists” is just not working.

No one believes the Russians are behind this, not even the hacks who are paid to pretend they do. And the “fascism” hysteria is also bombing. Attempts to portray the gilets jaunes as Le Pen-sponsored fascists blew up in their faces. Obviously, the far-Right are part of these protests, as they would be in any broad working class uprising, but there are far too many socialists and anarchists (and just regular pissed-off working class people) involved for the media to paint them all as “Nazis.”

Which is not to say that the corporate media and prominent public intellectuals like Bernard-Henri Lévy will not continue to hammer away at the “fascism” hysteria, and demand that the “good” and “real” gilets jaunes suspend their protests against Macron until they have completely purged their movement of “fascists,” and “extremists,” and other dangerous elements, and have splintered it into a number of smaller, antagonistic ideological factions that can be more easily neutralized by the French authorities … because that’s what establishment intellectuals do.

We can expect to hear this line of reasoning, not just from establishment intellectuals like Lévy, but also from members of the Identity Politics Left, who are determined to prevent the working classes from rising up against global neoliberalism until they have cleansed their ranks of every last vestige of racism, sexism, homophobia, xenophobia, transphobia, and so on. These leftist gatekeepers have been struggling a bit to come up with a response to the gilets jaunes … a response that doesn’t make them sound like hypocrites. See, as leftists, they kind of need to express their support for a bona fide working class uprising. At the same time, they need to delegitimize it, because their primary adversaries are fascism, racism, sexism, homophobia, xenophobia, and assorted other isms and phobias, not the neoliberal ruling classes.

Nothing scares the Identity Politics Left quite like an actual working class uprising. Witnessing the furious unwashed masses operating out there on their own, with no decent human restraint whatsoever, Identity Politics Leftists feel a sudden overwhelming urge to analyze, categorize, organize, sanitize, and otherwise correct and control them.

They can’t accept the fact that the actual, living, breathing working classes are messy, multiplicitous, inconsistent, and irreducible to any one ideology. Some of them are racists. Some are fascists. Others are communists, socialists, and anarchists. Many have no idea what they are, and don’t particularly care for any of these labels.This is what the actual working classes are … a big, contradictory collection of people who, in spite of all their differences, share one thing in common, that they are being screwed over by the ruling classes. I don’t know about you, but I consider myself one of them.

Where we go from here is anyone’s guess. According to The Guardian, as I am sitting here writing this, the whole of Europe is holding its breath in anticipation of the gilets jaunes’ response to Macron’s most recent attempt to appease them, this time with an extra hundred Euros a month, some minor tax concessions, and a Christmas bonus.

Something tells me it’s not going to work, but even if it does, and the gilets jaunes uprising ends, this messy, Western “populist” insurgency against global neoliberalism has clearly entered a new phase. Count on the global capitalist ruling classes to intensify their ongoing War on Dissent and their demonization of anyone opposing them (or contradicting their official narrative) as an “extremist,” a “fascist,” a “Russian agent,” and so on. I’m certainly looking forward to that, personally.

Oh… yeah, and I almost forgot, if you were wondering what you could get me for Christmas, I did some checking, and there appears to be a wide selection of yellow safety vests online for just a couple Euros.

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Washington Is Changing The World Order Against Its Own Interests

Any country sufficiently stupid to ally with the US is allied with a dead man walking.

Paul Craig Roberts

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Authored by Paul Craig Roberts:


The hubris and arrogance of Washington have been at work since the Clinton regime to destroy the power and relevance of the United States.

This website has an international audience. The most asked question from this audience is the world order. There is a realization that Washington’s control might weaken, a development people abroad see as hopeful. They ask me for verification of their hope.

Here is my answer:

The world order has already changed.  China has a larger and more powerful industrial and manufacturing based economy than the US, and China’s potential domestic consumer market is four times larger than that of the US. As economies are consumer based, China’s potential is an economy four times larger than that of the US.

Russia has a far more capable military with weapon systems unmatched by the US. The US is drowning in debt, and the illegal and irresponsible sanctions that Washington tries to impose on others are driving the world’s largest countries away from the use of the US dollar as world reserve currency and away from Western clearance systems such as SWIFT.  The United States already has one foot in the grave.  Any country sufficiently stupid to ally with the US is allied with a dead man walking.

President Eisenhower, a five-star general, warned Americans 57 years ago to no effect that the military/security complex was already a threat to the American people’s ability to control their government. Today the military/security complex is the Government. As Udo Ulfkotte documented in his book, Journalists for Hire: How the CIA buys the News—no you can’t buy a copy unless you can find a used copy in German in a German book store, the CIA has seen to that—journalism independent of official explanations no longer exists in the Western world.

Much of the world does not understand this. Aside from the material interests of Russian and Chinese capitalists, a portion of the youth of both superpowers, and also even in Iran, have succumbed to brainwashing by American propaganda. Gullible beyond belief, they are more loyal to America than they are to their own countries.

The United States itself is extremely unsuccessful, but its propaganda still rules the world. The consequence is that, based on its propagandistic success, Washington thinks it still holds the balance of economic and military power. This is a delusion that is leading Washington to nuclear war.

Considering the hypersonic speed, trajectory changeability and massive power of Russian nuclear weapons, war with Russia will result in nothing whatsoever being left of the US and its vassals, who sold out European peoples for Washington’s money.

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