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

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

Alex Christoforou

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Post originally appeared on Al Jazeera.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

References:

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

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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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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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