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El Pais interview, Varoufakis reveals how EU used “asphyxiation” strategy to bring Greece to its knees

Yanis Varoufakis in El Pais interview: “Fiscal waterboarding: I am very proud of this term. It is a precise, an accurate description of what has been happening for years now.”

Alex Christoforou

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Via Zerohedge:

…with the ECB using the Greek bank run nuclear option, the Syriza government did indeed undestand that the Troika “has all the leverage.” and today, Yanis Varoufakis – who is now embroiled in a national scandal which may see him charged with treason for daring to contemplate and implement a Plan B which saw the return of Greece to the Drachma, presented the full transcript of his interview with El Pais conducted last week, in which he put in his own words just what this battle of leverage which we first laid out in January, would be:

“Think of it as a ‘demonstration effect’: this is what will happen to you if you don’t fully submit to the Troika. What happened in Greece was definitely a coup. The asphyxiation of the Government through the liquidity squeeze, a series of denials of any serious debt restructuring… What was astonishing is that we kept coming to them with proposals which they refused seriously to discuss, they were insisting that we do not make them public and, at the same time, they leaked that we had no proposals. Any independent observer watching this would agree that they were never interested in a mutually beneficial agreement. By imposing the liquidity squeeze, they forced the economy to shrink so as to blame it on us… We had constantly to make payments to the IMF which where scheduled along with disbursements which never came through. So they kept doing this, delaying any agreement, until we run out of liquidity. Then they gave us an ultimatum under the further threat of bank closure. This was nothing but a coup. In 1967 there were the tanks and in 2015 there were the banks. But the result is the same in the sense of having overthrown the Government or having forced it to overthrow itself.”

Here is the full, unedited transcript of the interview with Claudi Perez from Varoufakis’ blog:

Why do all the interviews of you I have read begin with a question about how are you if it is clear, as I see, that you are really ok?

I suspect journalists assume that I am somehow downhearted now that I am not in the ministry. But I didn’t enter politics as a career. I entered politics to try to change things. There is a price to pay if one tries to change things.

What is the price?

The disdain of the establishment. The deep feelings of loathing by the vested interests one must dislodge to make a difference. They felt threatened. If you enter politics with an uncompromising position, you cop it.

You say that you have to change things. In these 6 months, do you have the feeling that you did?

Absolutely. Why are you here? You are here because something changed. There was a government that was elected to negotiate hard on the basis of a line of argument that wasn’t considered acceptable in the eurozone. At the same time, history necessitated it. So you have an unstoppable force striking an immovable object. The immovable logic is the irrationality of the Eurogroup and the unstoppable force is history. The result is a great deal of heat and noise… Hopefully there will be some light too.

I was reading your book, about your daughter… And then I was doing some numbers. The bailout will finish in 2018. Then the supervision will be there until Greece pays back the majority of its loans: the average maturity is 32 years. So the ex troika, now quadriga, and the men in black, will be here in Athens till your grandchildren will be adults. How do you deal with this?

Let’s not call them the ex troika anymore. It’s the troika again. We gave them the chance to become “the institutions”, to legitimize them. But they insisted in behaving like the illegitimate troika of the past five years.

Didn’t you kill the troika?

Well, we got rid of them here in Athens. Now they are back: the troika is back. They could have acted as legitimate institutions. But they seem to have a clear preference to act as the troika of lenders. It’s their choice.

But they’ll be here until 2050, when your grandchildren will be adults.

No, they won’t. Because this agreement doesn’t have a future. It is continuing the extending and pretending charade: extending the crisis with new unsustainable loans, and pretending that this solves the problem… It can’t go on forever. You can fool the people and the markets for a short period of time, but in the end you can’t fool them for fifty years. Either Europe changes, and this process is replaced by something more democratic, and durable, manageable, humanistic. Or Europe will no longer exist as a Monetary Union.

What do you expect for the next 6 months? We expect a 3rd bailout agreement in mid-August.

This is a program designed to fail. And so it will fail. It’s not easy for an architect to build a solid building, but it’s easy for him or her to construct a building that will collapse. Anyone can do it. It was planned to fail, because, let’s face it: Wolfgang Schauble is not interested in an agreement that works. He categorically stated that he wanted to redesign the eurozone and part of that redesign is that Greece should be thrown out of the eurozone. I think that he is completely mistaken but nevertheless this is his plan and he is a very powerful player. One of the great fallacies at the moment is to present the deal imposed on our government on 12th July as an alternative to Schauble’s plan. I see things differently: This deal is a part of the Schauble plan. Of course, this is not the conventional wisdom.

So do you expect a Grexit?

I hope not. But what I expect is a lot of noise, as I said: delays, failure to meet unreachable targets, more recession, political dead ends. And then things will come to head and Europe will have to decide whether to go ahead with Schauble’s plan or not.

But which is your central scenario? Is Schauble condemning Greece to go out?

You can see that there is a plan being implemented and which is in progress. Today we have read that Schauble wants to sideline the Commission and to create something like a Budget commissioner who oversees the ‘rules’ that strike down national budgets, even if a country is not under a program. In other words: to turn every country into a program country! One of the great successes of Spain in the middle of the crisis was that you avoided a full MoU (and only had a limited one stemming from the bank recapitalization program). Schauble’s plan is to put the troika everywhere, in Madrid too, but especially in… Paris!

So Paris is the final game.

Paris is the larger prize. It’s the final destination of the troika. Grexit is used to create the fear necessary to force Paris, Rome and Madrid to acquiesce.

Is it to sacrifice Greece for saving Europe?

Think of it as a ‘demonstration effect’: this is what will happen to you if you don’t fully submit to the Troika. What happened in Greece was definitely a coup. The asphyxiation of the Government through the liquidity squeeze, a series of denials of any serious debt restructuring… What was astonishing is that we kept coming to them with proposals which they refused seriously to discuss, they were insisting that we do not make them public and, at the same time, they leaked that we had no proposals. Any independent observer watching this would agree that they were never interested in a mutually beneficial agreement. By imposing the liquidity squeeze, they forced the economy to shrink so as to blame it on us… We had constantly to make payments to the IMF which where scheduled along with disbursements which never came through. So they kept doing this, delaying any agreement, until we run out of liquidity. Then they gave us an ultimatum under the further threat of bank closure. This was nothing but a coup. In 1967 there were the tanks and in 2015 there were the banks. But the result is the same in the sense of having overthrown the Government or having forced it to overthrow itself.

And for Europe as a whole?

Nobody can be free even if one person is a slave. That is Hegel’s well known master-slave paradox. Europe has to pay serious attention to it. Spain cannot prosper, or be free, or sovereign or democratic if its prosperity hinges on another member state being denied growth, prosperity or democracy.

Rajoy has said that if Spaniards vote for parties like Podemos, we will be like Greece in the coming months.

I remind you that Mitt Romney’s Presidential campaign in 2012 was run also on the basis of that ‘if Obama wins, the US will become like Greece’. So Greece has become a football on the feet of politicians of the right who try to scare their population. This is the great utility of Greece for the Grexit policy of Dr Schauble.

Do you think that Podemos could have damaged Greece because the fear of the political contagion?

I would never say that Podemos is a problem for us. Even if Podemos didn’t exist, the forces of regression in Europe would have used fear because, let’s face it: whenever a province of an empire rebels, the emperor and his minions feel obliged to make an example of those who make a dash for liberty. Maybe Podemos intensified this process but, in reality, we had no alternative: we had an economy caught in a large deflation spiral, no credit even for profitable businesses, no investment except for some speculation.

The previous government was adopting increasing degrees of authoritarianism, shutting down the state’s own radio and television stations. This self-defeating austerity drive, which leads to further losses in income, further debt in order to keep fueling this beast of austerity, can only be kept going by curtailing democracy. So what alternative did we have?

The Greeks voted for us not because they didn’t know we would be treated in a hostile way, but because they had had enough. Whatever happens in Spain, in France, in the Baltics, in Portugal, we had a duty to our people to say: We believe in Europe and we’re going to say to Europeans that we owe them money, we want to repay, but we cannot repay from incomes that keep shrinking. “If you keep squeezing us in this inhuman, irrational manner, you will lose your money and we will lose our country.”

Now, there comes a time when you simply need to say and do what is right, and if Europe as a whole chooses to punish us for it, because it is not ready to accept the truth, then we have no alternative but to say to them: “We are doing our best and we hope you find it in yourselves to do your best too!”

I think that is a uncontroversial: your ideas about austerity and debt relief, everybody says you are right.

If you were talking to me in January it would not have been so. The only reason why now this is not controversial anymore is because we struggled for six months. For those who say to me we failed, these six months were in vain, I say “No we did not fail”. Now we have a debate in Europe which it’s not just about Greece, it’s about the continent. A debate we would have not had otherwise. A debate which is worth Greece’s, our continent’s, weight in gold.

But politics is about results. You called the first and second bailout like the Versailles Treaty. How would you define the third?

The Eurozone began life in 2000. It was badly designed and we realized that, or we should have realized that, in 2008 when Lehman Brothers collapsed. From 2009-2010 we have been in complete denial as official Europe has been doing precisely the wrong thing. This is a European phenomenon, it is an Europe-wide problem. Little Greece, 2% of Eurozone’s GDP, elected a government that raised issues crucial for all of Europe.  After 6 months of struggles we had a major setback, we lost the battle. But we won the war of changing the debate. And this is a result!

The debate is the result?

Certainly! I cannot quantify this result for you. I cannot tell you how many billons it is worth. But some things are not measured in terms of prices but in terms of their value.

You had a plan B, with a parallel currency, but Tsipras didn’t want to press the button, to summarize the story.

He is the prime minister, it was his call. My job, as his financial minister, was to provide the best tools I could and it was his decision whether he chose to use them or not. That is what matters. There were good arguments to utilize these tools and there were arguments for not pressing the button.

When you closed the banks, did you think at that moment that you must press the button?

I clearly thought that we should have reacted in kind when the Eurogroup closed the Greek banks and I have stated this for the record. But this is what collective decision making is all about. It means you have an inner cabinet that decides. I tabled my recommendation but I was in a minority. I respected the decision of the majority and acted according to it, as a team player ought to. This is how democracy and governments work and I fully accept it.

But can this plan B still being implemented?

Let’s separate two things. There was a Plan B, which, in fact, we called Plan X, in contrast to the ECB’s 2012 Plan Z, as reported in the Financial Times some time ago. Plan X was a contingency plan for responding to aggressive acts by the ECB, the Eurogroup and so on. Then there was a quite separate design for a new payments system using the tax office’s interface. This system, as I explained in a recent article in the Financial Times, is something that should have been implemented anyway. I think Spain might benefit from implementing it to, or Italy for example. Countries lacking a central bank can potentially benefit from this efficient way of creating more liquidity, and more effectively dealing with multilateral extinguishment of arrears between the state and its citizens, but also among citizens.

So, let’s keep these two ‘plans’ separate. The payment system could, and should, be implemented tomorrow. Plan X is now, I think, part of history because it was intended as a response to aggressive acts that would have as their objective to make us surrender during the negotiations. Now that we have surrendered, it has become part of economic history.

Tsipras said in the parliament before the vote, after the referendum, that there was no alternative to the packages, but I think with this plan you are saying to the people that there is an alternative to the package.

My political thinking, from a very young age, was shaped by a principled, intellectual opposition to TINA – to the neoliberal logic that There Is No Alternative. This opposition shaped me from the time I lived in Britain under Margaret Thatcher who launched TINA. My political thinking was always directed at countering… TINA. I even concocted an alternative, saying that I believe not in TINA but in TATIANA: That Astonishingly There Is AN Alternative! So I would never accept the view that there was no alternative. I would accept that a prime minister, considering all the alternatives, opts for the least bad alternative. We can have a debate on whether his was the least bad, or optimal, alternative. But the proposition that there exists no alternative is constitutionally alien to every fibre of my body and mind.

Let me ask you about your rhetoric: mafia, criminals…

I never used the word Mafia

Terrorism, fiscal waterboarding…

Fiscal waterboarding: I am very proud of this term. It is a precise, an accurate description of what has been happening for years now. What is waterboarding? You take a subject, you push his head in the water until he suffocates but, at some point, before death comes you stop. You pull the head out just in time, before asphyxiation is complete, you allow the subject to take a few deep breaths, and then you push the head again in the water. You repeat until he… confesses. Fiscal waterboarding, on the other hand, is obviously not physical, it’s fiscal. But the idea is the same and it is exactly what happened to successive Greek governments since 2010. Instead of air, Greek governments nursing unsustainable debts were starved of liquidity. Facing payments to their creditors, or meeting its obligations, they were denied liquidity till the very last moment just before formal bankruptcy, until they ‘confessed’’; until they signed on agreements they knew to add new impetus on the real economy’s crisis. At that moment, the troika would provide enough liquidity, like they did now with the 7 billion the Greek government received in order to repay the… ECB and the IMF. Just like waterboarding, this liquidity, or ‘oxygen’, is calculated to be barely enough to keep the ‘subject’ going, without defaulting formally, but never more than that. And so the torture continues with the effect that the government remains completely under the troika’s control. This is how fiscal waterboarding functions and I cannot imagine a better and more accurate term to describe what has been going on.

On my use of the word ‘terror’, take the case of the referendum. On the 25th of June we were presented with a comprehensive proposal by the troika. We studied it with an open mind and concluded that it was a non-viable proposal. If we signed it, we would have definitely failed within 4-5 months and then Dr. Schäuble would say “See, you accepted conditions you could not fulfill”. The Greek government cannot afford to do this anymore. We need to reclaim our credibility by only signing agreements we can fulfill. So I said to my colleagues in the Eurogroup, on the 27th, that our team convened and decided that we could not accept this proposal, because it wouldn’t work. But at the same time, we are Europeanists and we don’t have a mandate, nor the will or interest, to clash with Europe. So we decided to put their proposal to the Greek people to decide.

And what did the Eurogroup do? It refused us an extension of a few weeks in order to hold this referendum in peace and instead they closed down our banks. Closing down the banks of a monetized economy is the worst form of monetary terrorism. It instills fear in people. Imagine if in Spain tomorrow morning the banks didn’t open because of a Eurogroup decision with which to force your government to agree to something untenable. Spaniards would be caught up in a vortex of monetary terror. What is terrorism? Terrorism is to pursue a political agenda through the spread of generalized fear. That is what they did. Meanwhile the Greek systemic media were terrorizing people to think that, if they voted No in the referendum, Armageddon would come. This was also a fear-based campaign. And this is what I said. Maybe people in Brussels don’t like it to hear the truth. If they refrained from trying to scare the Greek, then I would have refrained from using this term.

My point is the rhetoric calling criminals to IMF, as Tsipras did, is not good for the results of the negotiation. And with this rhetoric it is difficult.

He didn’t call the IMF criminal. Let’s be precise. He talked about a criminally negligent program that imposed upon Greeks a monumental crisis, including a humanitarian emergency. Which is exactly what the Greek ‘programs’ fo 2010 and 2012 were. But let me add an important point here: We did not turn up the ‘sharpness’ of our rhetoric (e.g. Tsipras’ remark) until late June. From 25th of January until late June we had been negotiating in good faith while the troika was not. We had been exceptionally mild and polite, in the face of incredible hostility and denigration. We went into each Eurogroup meeting with good proposals, suggesting to them that we should all agree on two or three major reforms immediately (e.g. tax evasion and corruption, a new tax authority independent of politics but also of the oligarchy). They rejected our overtures and they threatened us with cessation of the negotiations if we dared make our proposals public, while they were leaking at the same time to the Financial Times that we had no proposals. They insisted on a denigrating, endless round of ‘technical’ discussions while asphyxiating our economy. They behaved abominably while we continued to respond with solid arguments and in a highly civilized fashion.

And we sat there and took it, month after month. We never stopped compromising. By late June, our Prime Minister had met them 9/10ths of the way. And what did they do? They backtracked even from their own positions, insisting on 25th June, for example, that VAT on hotels should rise to 23%! This was an act of aggression. At that point we decided, very reasonably, to tell the truth, to talk about their program’s criminal negligence, to allude to their fiscal waterboarding. At some point the truth needs to be told. Europeans are losing trust in the EU because of their wall of lies and propaganda which presents itself in the form of nuanced terminology, when in reality what is happening is a complete violation of the basic rules of logic, of the EU Treaties, of polite behaviour and of democracy.

But then why did Tsipras accept it?

You should interview him if you wish to put questions to him. It is not right that I should answer on anyone else’s behalf, especially my Prime Minister.

In the Eurogroup, some ministers portrayed you like difficult to predict, luxurious way of life, many photos… What do you think when you hear this type of portrait?

It is not true. Nobody said anything like that in the Eurogroup. They may very well have said such things outside the Eurogroup, I would neither know nor care. Everybody, in the end, gets judged by the quality of their public narratives. I will leave you and your readers to pass judgment on their demeanour. We all need to be judged by our voters, by the people of Europe. In my case, I have a clear conscience. After the third Eurogroup I posted on my website my interventions in all three meetings. Read them and tell me if I was unpredictable, impolite, whatever. In my estimation, my interventions were clear, economically beyond reproach, and constructive. Readers can read them and judge.

Do people understand your pictures on Paris Match for example? Do you think that people that have voted Syriza, which is a left party, understand this type of pictures?

Well, you want to walk around with me on the streets of Athens and see what people say to me about all this? Our people are not bothered by any of this, even though I said it clearly that the Paris Match aesthetic was terrible and I regret accepting to do the photoshoot. You may not believe me but, when I accepted, I didn’t know what Paris Match was – it is not the kind of press I ever knew much about. I asked to see the article’s text before agreeing to do the photoshoot. The text was fine and so I made the mistake to agree to the photoshoot. I rushed home for it and only had 15 minutes to spare. Danae, my wife, told me it felt like a bad idea but I was already committed and so I decided to do it quickly, rushing from one ‘set’ to the next before leaving for a meeting with the Prime Minister. It was my mistake to have accepted it and I have apologized for it. But all this talk about Paris Match and its photoshoot had one purpose: to ensure that my message, especially the rational criticisms of Europe’s ways, gets drowned in ugly pictures and toxic noise.

What are you going to do about your political career?

Politics should not be a career. I am a member of the Parliament and extremely honored by the trust vested in me by voters. My commitment to them when I entered politics last January was that I will stand my ground and fight along their side for democracy and prosperity in Greece but also throughout Eyrope. I’m here for the course, I´m not going anywhere.

You are an academic, a professor and author of really good books like the Minotaur. Did you like the politics, what you saw in Brussels?

I certainly didn’t like what I saw in Brussels and I don’t think any European would like it if they had the chance to see it for themselves. But this is what we have, that is the EU we have, and we have to fix it. The worst enemy of democracy is citizens who say this is a terrible system but I’m not prepared to do anything to change it.

Why don’t you have allies in the Eurogroup? I mean, nor France, nor Italy, Spain, Ireland… Countries that at the beginning, with Syriza, had positive thinkings and at the end there were 18 against 1.

What you have to understand is that this 18-1 balance in the Eurogroup is an illusion. The 18 are divided very significantly in three groups. The very tiny, tiny minority who believe in austerity. The largest group of countries don’t believe in austerity but imposed austerity on their own people. And then there is another group of countries that neither believe in austerity nor practise it – e.g. France. But they fear that if they support us openly then austerity and the troika will come their way.

What is your relationship with Schäuble, de Guindos and maybe Dijsselbloem?

No relationship could have existed with Dijsselbloem. This is not just because he is so intellectually lightweight but, primarily, because he is untrustworthy. For example, he chose to lie to me in my first Eurogroup about procedure. It is one thing to disagree with the Eurogroup President. It is quite another thing to have him lie to you about gravely important procedures. On the other hand, Schäuble and de Guindos are two colleagues that I very much enjoy talking to, at a personal level. Our conversations were often tough but they were also interesting exchanges. As an academic, there is nothing more interesting than interesting exchanges. Our disagreements were serious but, at personal level, there was mutual respect and a useful exchange of ideas was had. The problem is that when you put all these people together in the Eurogroup, because of the catastrophically bad institutional design of the Eurogroup, you end up with governance failure that damages Europe. So, in a different context, institutional framework, I am sure that with colleagues like de Guindos and Schäuble our working relationship would have ended up producing tastier fruits.

Coming back to the question about Spain. What are the lessons of Greece for Spain? The Spanish government has said that if people vote for Podemos, problems will come and Spain will become Greece after a few months.

I think that the people of Spain need to look at the economic and social situation in Spain and base the judgment on what their society needs, independently of what is happening in Greece, France… The danger of becoming Greece is always there and will materialize if you keep repeating the same mistakes that were imposed on Greece. Punishing one proud nation in order to put fear in another is not what Europe should be about. It is not the Europe we signed up for, not the Europe that González had signed for or Papandreou, or Giscard d’Estaing, or Helmut Schmidt etc. We need to recover the sense of being Europeans and finding ways of recreating the dream of shared prosperity with democracy. The idea that fear and loathing are going to be the creators of the new Europe is an idea that is going to lead us headlong to a postmodern 1930s. I believe that the people of Spain and of Greece know exactly what the 1930s did to them.

You said once that the legacy of Thatcher was financialization, malls and Tony Blair. And I ask you, what is the legacy of Merkel, of her leadership?

Europe is in the process of turning from a realm of shared prosperity, which is how we imagined it, into an iron cage for our peoples. I hope that Mrs Merkel decides that this is not a legacy she wants to leave behind.

References:

http://www.zerohedge.com/news/2015-08-02/varoufakis-1967-there-were-tanks-and-2015-there-were-banks

http://yanisvaroufakis.eu/2015/08/02/in-conversation-with-el-pais-claudi-perez-the-complete-long-transcript/

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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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