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The great debate on Russia’s economic policy

Comments by Central Bank Chair Elvira Nabiullina confirm Russia will maintain tight monetary policy as it seeks to rein in inflation and to move from an economic model based on consumption towards one focused on investment, manufacturing and export.

Alexander Mercouris

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With annualised inflation in Russia falling to 6.9% at the end of August, and with Russia reporting zero inflation in the first weeks of September, the strong indications are that the Russian Central Bank is preparing to cut interest rates by 0.5% to 10% at its next meeting on Friday 16th September 2016.

The Central Bank has indicated that it intends for the time being to keep its key rate 3% above the annualised rate of inflation.  Since the annualised rate of inflation is now roughly 7%, following the logic of the Central Bank’s own policy that should mean a cut in interest rates on Friday to 10%

Central Bank Chair Nabiullina calls interest rates of 10% against an annualised inflation rate of inflation of 6.9% and an underlying rate of inflation which may be as low as 5.5% a “moderately tight monetary policy”. 

In reality this “moderately tight monetary policy” is leaving Russia with by far the highest real interest rates of any major economy in the world.  To be clear, such a “moderately tight monetary policy” were it attempted in any Western economy or in China, would cause an extremely severe recession, one far more severe than the one Russia has just been through.  

The reason Russia has managed to avoid such a severe recession is not because the high real interest rates are not for real.  It is because its debt levels are so much lower than in the West and in China that it can live with interest rates they would find unendurable.  As it is these very high real interest rates are depressing economic growth, which is why the Central Bank, in the absence of any softening of policy, forecasts that growth in the medium term will remain low.

Nabiullina on Friday at an economic conference in Sochi provided an explanation for her policy. She made it clear that she has no intention of softening her policy. Rather she intends to keep interest rates 3% above inflation for the indefinite future in order to purge the Russian economy of its long running inflation problem, one which extends back to the 1960s (though it was masked during the Soviet period by the Soviet practice of fixing prices), and which caused Russia to experience double-digit inflation continuously throughout the 1990s and 2000s, with a sustained fall in inflation to single figures only taking place since roughly 2010.

Nabiullina has made it clear that this is all part of a long term policy of moving the Russian economy away from a model based on consumption towards one centred on investment and manufacturing.   The Central Bank explained its thinking back in November 2015 in the Guidelines it published to explain its monetary policy

“Interest rates on long-term contracts always imply inflation expectations. The Bank of Russia proceeds from the fact that as the inflation and inflation expectations decline, long term rates on loans will go down boosting the economic growth. Amid low inflation expectations long-term rates will persistently develop at the low level. It is an important advantage of the inflation targeting, under which the Bank of Russia implements the monetary policy.”

In the same Guidelines the Central Bank also made clear that it sees low inflation as the means of achieving long-term stability for the rouble

“……ensuring the stability of the national currency does not mean fixing its exchange rate against other currencies at a specific level, but rather achieving stability by maintaining the purchasing power of the ruble, i.e. by ensuring price stability.”

This is a policy framework which would be immediately familiar to the Bundesbank, from whom it appears to have been copied.  The idea is that the combination of low inflation, low long term rates of interest, and positive real interest rates, will encourage long term saving and investment, increasing over time productivity and growth. 

Until that comes the Central Bank is prepared to accept a trade-off of lower growth because of the tight monetary policy to reduce inflation in the short term.  This is the policy framework that I heard Kudrin and Nabiullina discuss at SPIEF. 

A further aspect of the policy is that in order to increase competitiveness and hold down imports the current policy also seeks to bear down on consumption by keeping the budget out of deficit.  Russia in fact already runs a very tight budget, with the country’s federal budget deficit as it exits recession no more than 2.9% of GDP in the first 8 months of the year – a fact which points to a budget surplus once the economy achieves sustained growth.

Somewhat to my surprise Kudrin justified the policy of keeping the budget out of deficit by conjuring up the so-called “crowding out” hypothesis whereby the need to fund the budget deficit supposedly “crowds out” funding for private investment.  

 It would be more true to say that keeping the budget balanced or in surplus tends to limit consumption and that this can result over time in trade and balance of payments’ surpluses.  Again that is the policy followed in Germany and is the reason for the very large  trade and balance of payments surpluses there.  Once again it seems that Kudrin and Nabiullina want to copy it.  

In other words, by raising investment and limiting consumption they want to make Russia an exporter of finished goods rather than, or as well as, an exporter of commodities.

That incidentally point to an important fact about the current fall in real incomes in Russia which has happened since the start of the recession, and which is still underway, and which critics of the government speak so often about.  

As Kudrin and Nabiullina both know it is the product of super-tight monetary and fiscal policies they are both insisting on, and is moreover an intended consequence of those policies.  In other words it is being deliberately engineered as part of a programme of moving the Russian economy away from an economic model based on consumption towards one based on investment, manufacturing and export.

 Again the parallels with Germany, which also squeezes real incomes in order to limit consumption and gain competitiveness, are very striking.  Given the implications this has for most Russians, it is no wonder that Kudrin and Nabiullina are unpopular.

All of this of course was accompanied both at SPIEF and in Nabiullina’s latest comments at Sochi by much talk of various incremental reforms to improve the business climate, which took up most of the time during the presentation at SPIEF which I attended.  

As Kudrin and Nabiullina of course both know, these reforms have actually been underway in Russia for some time, and have resulted in a sharp improvement in Russia’s World Bank Ease of Doing Business rankings

From time to time the reality of this improvement is questioned.  However there is no reason to think it is not taking place.  Anecdotal evidence on the contrary suggests it is. German Gref, a supporter of Kudrin and Nabiullina who is Sberbank’s CEO, recently told Putin that it actually is taking place, and as the CEO of Russia’s biggest bank he is arguably in the best position to know. In a meeting on 4th August 2016 to discuss the support Sberbank is providing to small businesses, he said the following

“As far as small businesses go, there are two aspects here. First, they need rapid and high quality lending. Second, there is everything related to assisting small businesses to resolve all the remaining problems such as convenient practice for keeping accounts, banking accounting and so on.

We have made great progress in this area and, starting in September this year, a new law will come into effect making it possible to open accounts, make transfers, register changes to company charters and so on online.

Essentially, small businesses will not have to visit state agencies in person anymore. This programme, which we are implementing together with the tax service, is a big step forward in general.

I think that the environment that we will have in place by the end of 2016, when all of the legal amendments take effect, will mean that Russia will be offering one of the most interesting and technologically convenient environments for small businesses.”

(bold italics added)

To those who assume that Kudrin and Nabiullina are free market fundamentalists, I would say that the word “market” was barely mentioned during their entire SPIEF presentation, just as it barely appears in the Central Bank’s Guidelines document. 

On the contrary – and as I have heard Kudrin say before – Kudrin seems to favour elements of industrial planning, as well as state involvement in developing infrastructure, even as he criticises excessive government interference in private business activity.  I doubt there is any Russian official who believes – as do some people in the US and in Britain – that the market is infallible and can be left alone to take care of itself.

Like it or not this is Russia’s economic policy.  I know that some people don’t like it.  I also know that there is an alternative plan being proposed by the Stolypin Group which takes an altogether more Keynesian approach by seeking to expand the economy through higher deficit spending. Whilst this alternative plan seems to have some supporters in the Economics Ministry, and though Putin has agreed to look at it, it was absolutely clear to me at SPIEF that it is the current policy that Putin favours and which has his backing, and which has the overall support of the government.

I don’t expect it to change and Nabiullina’s comments on Friday all but confirm as much.

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VIPS Fault Mueller Probe, Criticize Refusal to Interview Assange

The bug in Mueller’s report released on Thursday is that he accepts that the Russian government interfered in the election. Trump should challenge that, says VIPS.

Consortium News

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Via ConsortiumNews.com:


MEMORANDUM FOR: The President

FROM: Veteran Intelligence Professionals for Sanity (VIPS)

SUBJECT: The Fly in the Mueller Ointment

April 16, 2019

Mr. President:

The song has ended but the melody lingers on. The release Thursday of the redacted text of Special Counsel Robert Mueller’s “Report on the Investigation into Russian Interference in the 2016 Presidential Election” nudged the American people a tad closer to the truth on so-called “Russiagate.”

But the Mueller report left unscathed the central-but-unproven allegation that the Russian government hacked into the DNC and Podesta emails, gave them to WikiLeaks to publish, and helped you win the election. The thrust will be the same; namely, even if there is a lack of evidence that you colluded with Russian President Vladimir Putin, you have him to thank for becoming president. And that melody will linger on for the rest of your presidency, unless you seize the moment.

Mueller has accepted that central-but-unproven allegation as gospel truth, apparently in the lack of any disinterested, independent forensic work. Following the odd example of his erstwhile colleague, former FBI Director James Comey, Mueller apparently has relied for forensics on a discredited, DNC-hired firm named CrowdStrike, whose credibility is on a par with “pee-tape dossier” compiler Christopher Steele. Like Steele, CrowdStrike was hired and paid by the DNC (through a cutout).

We brought the lack of independent forensics to the attention of Attorney General William Barr on March 13 in a Memorandum entitled “Mueller’s Forensic-Free Findings”, but received no reply or acknowledgement. In that Memorandum we described the results of our own independent, agenda-free forensic investigation led by two former Technical Directors of the NSA, who avoid squishy “assessments,” preferring to base their findings on fundamental principles of science and the scientific method. Our findings remain unchallenged; they reveal gaping holes in CrowdStrike’s conclusions.

We do not know if Barr shared our March 13 Memorandum with you. As for taking a public position on the forensics issue, we suspect he is being circumspect in choosing his battles carefully, perhaps deferring until later a rigorous examination of the dubious technical work upon which Mueller seems to have relied.

Barr’s Notification to Congress

As you know, the big attention-getter came on March 24 when Attorney General William Barr included in his four-page summary a quote from Mueller’s report: “The investigation did not establish that members of the Trump campaign conspired or coordinated with the Russian government in its election interference activities.” Understandably, that grabbed headlines — the more so, since most Americans had been convinced earlier by the media that the opposite was true.

There remains, however, a huge fly in the ointment. The Mueller report makes it clear that Mueller accepts as a given — an evidence-impoverished given — that the Russian government interfered in the election on two tracks:

Track 1 involves what Barr, echoing Mueller, claims “a Russian organization, the Internet Research Agency (IRA)” did in using social media “to sow social discord, eventually with the aim of interfering with the election.” A careful look at this allegation shows it to be without merit, despite Herculean efforts by The New York Times, for example, to put lipstick on this particular pig.  After some rudimentary research, award winning investigative reporter Gareth Porter promptly put that pig out of its misery and brought home the bacon. We do not believe “Track 1” merits further commentary.

Track 2 does need informed commentary, since it is more technical and — to most Americans — arcane. In Barr’s words: “The Special Counsel found that Russian government actors successfully hacked into computers and obtained emails from persons affiliated with the Clinton campaign and Democratic Party organizations, and publicly disseminated those materials through various intermediaries, including WikiLeaks. Based on these activities, the Special Counsel brought criminal charges against a number of Russian military officers for conspiring to hack into computers in the United States for purposes of influencing the election.”

We are eager to see if Mueller’s report contains more persuasive forensic evidence than that which VIPS has already debunked. In Barr’s summary, the only mention of forensics refers to “forensic accountants” — a far cry from the kind of forensic investigators needed to provide convincing proof of “hacking” by the Russian government.

But They Were Indicted!

Circular reasoning is not likely to work for very long, even with a U.S. populace used to being brainwashed by the media. Many Americans had mistakenly assumed that Mueller’s indictment of Russians — whether they be posting on FaceBook or acting like intelligence officers — was proof of guilt. But, as lawyers regularly point out, “one can easily indict a ham sandwich” — easier still these days, if it comes with Russian dressing.

Chances have now increased that the gullible folks who had been assured that Mueller would find collusion between you and Putin may now be a bit more circumspect — skeptical even — regarding the rest of the story-line of the “Russian hack,” and that will be even more likely among those with some technical background. Such specialists will have a field day, IF — and it is a capital “IF” — by some miracle, word of VIPS’ forensic findings gets into the media this time around.

The evidence-impoverished, misleadingly labeled “Intelligence Community Assessment” of January 6, 2017 had one saving grace. The authors noted: “The nature of cyberspace makes attribution of cyber operations difficult but not impossible. Every kind of cyber operation — malicious or not — leaves a trail.” Forensic investigators can follow a trail of metadata and other technical properties. VIPS has done that.

A “High-Class Entity?”

If, as we strongly suspect, Mueller is relying for forensics solely on CrowdStrike, the discredited firm hired by the DNC in the spring of 2016, he is acting more in the mold of Inspector Clouseau than the crackerjack investigator he is reputed to be. It simply does not suffice for Mueller’s former colleague James Comey to tell Congress that CrowdStrike is a “high-class entity.” It is nothing of the sort and, in addition to its documented incompetence, it is riddled with conflicts of interest. Comey needs to explain why he kept the FBI away from the DNC computers after they were said to have been “hacked.”

And former National Intelligence Director James Clapper needs to explain his claim last November that “the forensic evidence was overwhelming about what the Russians had done.” What forensic evidence? From CrowdStrike? We at VIPS, in contrast, are finding more and more forensic evidence that the DNC emails were leaked, not hacked by the Russians or anyone else — and that “Guccifer 2.0” is an out-and-out fraud. Yes, we can prove that from forensics too.

But the Talking Heads Say …

Again, if Mueller’s incomplete investigation is allowed to assume the status of Holy Writ, most Americans will continue to believe that — whether you colluded the Russians or not — Putin came through for you big time. In short, absent President Putin’s help, you would not be president.

Far too many Americans will still believe this because of the mainstream-media fodder — half-cooked by intelligence leaks — that they have been fed for two and a half years. The media have been playingthe central role in the effort of the MICIMATT (the Military-Industrial-Congressional-Intelligence-Media-Academia-Think-Tank) complex to stymie any improvement in relations with Russia. We in VIPS have repeatedly demonstrated that the core charges of Russian interference in the 2016 election are built on a house of cards. But, despite our record of accuracy on this issue — not to mention our pre-Iraq-war warnings about the fraudulent intelligence served up by our former colleagues — we have gotten no play in mainstream media.

Most of us have chalked up decades in the intelligence business and many have extensive academic and government experience focusing on Russia. We consider the issue of “Russian interference” of overriding significance not only because the allegation is mischievously bogus and easily disproven. More important, it has brought tension with nuclear-armed Russia to the kind of dangerous fever pitch not seen since the Cuban missile crisis in 1962, when the Russian provocation was real — authentic, not synthetic.

Sober minds resolved that crisis more than a half-century ago, and we all got to live another day. These days sober minds seem few and far between and a great deal is at stake. On the intelligence/forensics side, we have proved that the evidence adduced to “prove” that the Russians hacked into the DNC and Podesta emails and gave them to WikiLeaks is spurious. For example, we have examined metadata from one key document attributed to Russian hacking and shown that it was synthetically tainted with “Russian fingerprints.”

Who Left the Bread Crumbs?

So, if it wasn’t the Russians, who left the “Russian” bread-crumb “fingerprints?” We do not know for sure; on this question we cannot draw a conclusion based on the principles of science — at least not yet. We suspect, however, that cyber warriors closer to home were responsible for inserting the “tell-tale signs” necessary to attribute “hacks” to Russia. We tacked on our more speculative views regarding this intriguing issue onto the end of our July 24, 2017 Memorandum to you entitled “Intelligence Veterans Challenge Russia Hack Evidence.”

We recall that you were apprised of that Memorandum’s key findings because you ordered then-CIA Director Mike Pompeo to talk to William Binney, one of our two former NSA Technical Directors and one of the principal authors of that Memorandum. On October 24, 2017, Pompeo began an hour-long meeting with Binney by explaining the genesis of the odd invitation to CIA Headquarters: “You are here because the president told me that if I really wanted to know about Russian hacking I needed to talk to you.”

On the chance Pompeo has given you no report on his meeting with Binney, we can tell you that Binney, a plain-spoken, widely respected scientist, began by telling Pompeo that his (CIA) people were lying to him about Russian hacking and that he (Binney) could prove it. Pompeo reacted with disbelief, but then talked of following up with the FBI and NSA. We have no sign, though, that he followed through. And there is good reason to believe that Pompeo himself may have been reluctant to follow up with his subordinates in the Directorate of Digital Innovation created by CIA Director John Brennan in 2015. CIA malware and hacking tools are built by the Engineering Development Group, part of that relatively new Directorate.

Obfuscation’

A leak from within the CIA, published on March 31, 2017 by WikiLeaks as part of the so-called “Vault 7” disclosures, exposed a cyber tool called “Marble,” which was used during 2016 for “obfuscation” (CIA’s word). This tool can be used to conduct a forensic attribution double game (aka a false-flag operation); it included test samples in Arabic, Chinese, Farsi, Korean, and Russian. Washington Post reporter Ellen Nakashima, to her credit, immediately penned an informative article on the Marble cyber-tool, under the catching (and accurate) headline “WikiLeaks’ latest release of CIA cyber-tools could blow the cover on agency hacking operations.” That was apparently before Nakashima “got the memo.” Mainstream media have otherwise avoided like the plague any mention of Marble.

Mr. President, we do not know if CIA’s Marble, or tools like it, played some kind of role in the campaign to blame Russia for hacking the DNC. Nor do we know how candid the denizens of CIA’s Directorate of Digital Innovation have been with the White House — or with former Director Pompeo — on this touchy issue. Since it is still quite relevant, we will repeat below a paragraph included in our July 2017 Memorandum to you under the sub-heading “Putin and the Technology:”

“We also do not know if you have discussed cyber issues in any detail with President Putin. In his interview with NBC’s Megyn Kelly, he seemed quite willing – perhaps even eager – to address issues related to the kind of cyber tools revealed in the Vault 7 disclosures, if only to indicate he has been briefed on them. Putin pointed out that today’s technology enables hacking to be “masked and camouflaged to an extent that no one can understand the origin” [of the hack] … And, vice versa, it is possible to set up any entity or any individual that everyone will think that they are the exact source of that attack. Hackers may be anywhere,” he said. “There may be hackers, by the way, in the United States who very craftily and professionally passed the buck to Russia. Can’t you imagine such a scenario? … I can.”

As we told Attorney General Barr five weeks ago, we consider Mueller’s findings fundamentally flawed on the forensics side and ipso facto incomplete. We also criticized Mueller for failing to interview willing witnesses with direct knowledge, like WikiLeaks’ Julian Assange.

Political Enemies & Mainstream Media (Forgive the Redundancy)

You may be unaware that in March 2017 lawyers for Assange and the Justice Department (acting on behalf of the CIA) reportedly were very close to an agreement under which Assange would agree to discuss “technical evidence ruling out certain parties” in the leak of the DNC emails and agree to redact some classified CIA information, in exchange for limited immunity. According to the investigative reporter John Solomon of The Hill, Sen. Mark Warner, (D-VA) vice chair of the Senate Intelligence Committee, learned of the incipient deal and told then-FBI Director Comey, who ordered an abrupt“stand down” and an end to the discussions with Assange.

Why did Comey and Warner put the kibosh on receiving “technical evidence ruling out certain parties” [read Russia]? We won’t insult you with the obvious answer. Assange is now in prison, to the delight of so many — including Mrs. Clinton who has said Assange must now “answer for what he has done.”

But is it too late to follow up somehow on Assange’s offer? Might he or his associates be still willing to provide “technical evidence” showing, at least, who was not the culprit?

You, Mr. President, could cause that to happen. You would have to buck strong resistance at every turn, and there all manner of ways that those with vested interests and a lot of practice in sabotage can try to thwart you — with the full cooperation of most media pundits. By now, you know all too well how that works.

But you are the president. And there may be no better time than now to face them down, show the spurious nature of the concocted “evidence” attempting to put you in “Putin’s pocket,” and — not least — lift the cloud that has prevented you from pursuing a more decent relationship with Russia.

For the Steering Group, Veteran Intelligence Professionals for Sanity

William Binney, former Technical Director, World Geopolitical & Military Analysis, NSA; co-founder, SIGINT Automation Research Center (ret.)

Bogdan Dzakovic, former Team Leader of Federal Air Marshals and Red Team, FAA Security (ret.) (associate VIPS)

Philip Giraldi, CIA, Operations Officer (ret.)

Mike Gravel, former Adjutant, top secret control officer, Communications Intelligence Service; special agent of the Counter Intelligence Corps and former United States Senator

James George Jatras, former U.S. diplomat and former foreign policy adviser to Senate leadership (Associate VIPS)

Larry Johnson, former CIA Intelligence Officer & former State Department Counter-Terrorism Official, (ret.)

Michael S. Kearns, Captain, USAF (ret.); ex-Master SERE Instructor for Strategic Reconnaissance Operations (NSA/DIA) and Special Mission Units (JSOC)

John Kiriakou, former CIA Counterterrorism Officer and former Senior Investigator, Senate Foreign Relations Committee

Karen Kwiatkowski, former Lt. Col., US Air Force (ret.), at Office of Secretary of Defense watching the manufacture of lies on Iraq, 2001-2003

Clement J. Laniewski, LTC, U.S. Army (ret.)

Linda Lewis, WMD preparedness policy analyst, USDA (ret.)

Edward Loomis, NSA Cryptologic Computer Scientist (ret.)

David MacMichael, former Senior Estimates Officer, National Intelligence Council (ret.)

Ray McGovern, former US Army infantry/intelligence officer & CIA presidential briefer (ret.)

Elizabeth Murray, former Deputy National Intelligence Officer for the Near East & CIA political analyst (ret.)

Todd E. Pierce, MAJ, US Army Judge Advocate (ret.)

Peter Van Buren,U.S. Department of State, Foreign Service Officer (ret.) (associate VIPS)

Robert Wing, U.S. Department of State, Foreign Service Officer (former) (associate VIPS)

Ann Wright, U.S. Army Reserve Colonel (ret) and former U.S. Diplomat who resigned in 2003 in opposition to the Iraq War

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Ukraine’s president-in-waiting Zelensky vows to end conflict in Donbass with ‘POWERFUL INFOWAR’

Zelensky vowed to “act within the Normandy format,” referring to the French-German-Russian-Ukrainian talks on war in Donbass, saying that “we will continue the Minsk process, we will restart it.”

RT

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Via RT…


Comedian-turned-politician Volodymyr Zelensky, set for a landslide win in Ukraine’s presidential vote, stayed true to character at his first press conference, dropping some flashy promises but refusing to go into boring detail.

Shortly after claiming electoral victory, Zelensky held a Q&A session with reporters at his campaign HQ in a Kiev business center. While the official results of the elections have yet to be announced, multiple exit polls suggest he secured more than 72 percent of votes.

Zelensky addressed the media in an easy-going manner. He spoke in a mix of Ukrainian and Russian, switching between the two languages, sometimes in one sentence. He also talked English a bit. But if the press hoped to shed light on the policies of the incoming president and his team, the conference actually generated more questions than answers.

Bringing the civil war in eastern Ukraine to an end appears to be one of the top priorities for Zelensky.

Promising to announce some kind of a plan shortly, he asked the reporters for help in the upcoming “infowar” that he says would help end the conflict, which, since 2014, has been raging between Kiev’s troops and the rebel self-proclaimed republics.

We will launch a very powerful information war to end the war in Donbass.

He then vowed to “act within the Normandy format,” referring to the French-German-Russian-Ukrainian talks on war in Donbass, saying that “we will continue the Minsk process, we will restart it.”

Next up, Zelensky did not rule out – even if half-jokingly – that the outvoted president Petro Poroshenko could gain a government post if the public “asks so.”

Do you want me to appoint him? Then I will ask society… If they tell me that they want to see Petro Poroshenko in one post or another – maybe, I don’t know.

Zelensky added, though, that he would like to try “new people” first. But the very team of the soon-to-be president still remains a mystery, as he’s refusing to provide any names, be it the new administration, the judiciary, or the country’s military.

“We have very serious acting generals who have authority in the army, you will definitely see them. I have no right to give the names of these people now, as there is an agreement with the generals,” Zelensky said cryptically, likewise not revealing his candidate for prosecutor general.

For now, Zelensky and his Servant of the People party – notably named after his own comedy show where he played a schoolteacher-turned-president – are promising to introduce the team “in the near future.”

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The Triumph of Evil

What is going on is that American oil companies want to recover their control over the revenue streams from Venezuela’s vast oil reserves.

Paul Craig Roberts

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Authored by Paul Craig Roberts:


Today (April 17) I heard a NPR “news” report that described the democratically elected president of Venezuela as “the Venezuelan dictator Maduro.” By repeating over and over that a democratically elected president is a dictator, the presstitutes create that image of Maduro in the minds of vast numbers of peoples who know nothing about Venezuela and had never heard of Maduro until he is dropped on them as “dictator.”

Nicolas Maduro Moros was elected president of Venezuela in 2013 and again in 2018. Previously he served as vice president and foreign minister, and he was elected to the National Assembly in 2000. Despite Washington’s propaganda campaign against him and Washington’s attempt to instigate violent street protests and Maduro’s overthrow by the Venezuelan military, whose leaders have been offered large sums of money, Maduro has the overwhelming support of the people, and the military has not moved against him.

What is going on is that American oil companies want to recover their control over the revenue streams from Venezuela’s vast oil reserves. Under the Bolivarian Revolution of Chavez, continued by Maduro, the oil revenues instead of departing the country have been used to reduce poverty and raise literacy inside Venezuela.

The opposition to Maduro inside Venezuela comes from the elites who have been traditionally allied with Washington in the looting of the country. These corrupt elites, with the CIA’s help, temporarily overthrew Chavez, but the people and the Venezuelan military secured his release and return to the presidency.

Washington has a long record of refusing to accept any reformist governments in Latin America. Reformers get in the way of North America’s exploitation of Latin American countries and are overthrown.

With the exceptions of Venezuela, Bolivia, Cuba, and Nicaragua, Latin America consists of Washington’s vassal states. In recent years Washington destroyed reform governments in Honduras, Argentina and Brazil and put gangsters in charge.

According to US national security adviser John Bolton, a neoconservative war monger, the governments in Venezuela, Cuba, and Nicaragua will soon be overthrown. New sanctions have now been placed on the three countries. Washington in the typical display of its pettiness targeted sanctions against the son of the Nicaraguan president Daniel Ortega. https://www.rt.com/news/456841-bolton-russia-venezuela-threat/

Ortega has been the leader of Nicaragua since for 40 years. He was president 1985-1990 and has been elected and reelected as president since 2006.

Ortega was the opponent of Somoza, Washington’s dictator in Nicaragua. Consequently he and his movement were attacked by the neoconservative operation known as Iran-Contra during the Reagan years. Ortega was a reformer. His government focused on literacy, land reform, and nationalization, which was at the expense of the wealthy ruling class. He was labeled a “Marxist-Leninist,” and Washington attempted to discredit his reforms as controversial leftist policies.

Somehow Castro and Ortega survived Washington’s plots against them. By the skin of his teeth so did Chavez unless you believe it was the CIA that gave him cancer. Castro and Chavez are dead. Ortega is 74. Maduro is in trouble, because Washington has stolen Venezuela’s bank deposits and cut Venezuela off the international financial system, and the British have stolen Venezuela’s gold. This makes it hard for Venezuela to pay its debts.

The Trump regime has branded the democratically twice-elected Maduro an “illegitimate” president. Washington has found a willing puppet, Juan Guaido, to take Maduro’s place and has announced that the puppet is now the president of Venezuela. No one among the Western presstitutes or among the vassals of Washington’s empire finds it strange that an elected president is illegitimate but one picked by Washington is not.

Russia and China have given Maduro diplomatic support. Both have substantial investments in Venezuela that would be lost if Washington seizes the country. Russia’s support for Maduro was declared by Bolton today to be a provocation that is a threat to international peace and security. Bolton said his sanctions should be seen by Russia as a warning against providing any help for the Venezuelan government.

Secretary of state Mike Pompeo and vice president Pence have added their big mouths to the propaganda against the few independent governments in Latin America. Where is the shame when the highest American government officials stand up in front of the world and openly proclaim that it is official US government policy to overthrow democratically elected governments simply because those governments don’t let Americans plunder their countries?

How is it possible that Pompeo can announce that the “days are numbered” of the elected president of Nicaragua, who has been elected president 3 or 4 times, and the world not see the US as a rogue state that must be isolated and shunned? How can Pompeo describe Washington’s overthrow of an elected government as “setting the Nicaraguan people free?”

The top officials of the US government have announced that they intend to overthrow the governments of 3 countries and this is not seen as “a threat to international peace and security?”

How much peace and security did Washington’s overthrow of governments in Iraq, Libya, Ukraine, and the attempted overthrow of Syria bring?

Washington is once again openly violating international law and the rest of the world has nothing to say?

There is only one way to describe this: The Triumph of Evil.

“The blood-dimmed tide is loosed, and everywhere the ceremony of innocence is drowned; the best lack all conviction, while the worst are full of passionate intensity.” — William Butler Yeats

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