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US Blunders Have Made Russia The Global Trade Pivot

Even if Europe is somehow taken out of the trade equation, greater synergy between the RIC (Russia, India and China) nations may be enough to pull their nations through anticipated global volatilities ahead

The Duran

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Authored by Mathew Maavak via ActivistPost.com:


The year 2019 had barely begun before news emerged that six Russian sailors were kidnapped by pirates off the coast of Benin. It was perhaps a foretaste of risks to come. As nations reel from deteriorating economic conditions, instances of piracy and other forms of supply chain disruptions are bound to increase.

According to the International Maritime Bureau (IMB), 107 cases of piracy were noted during the first half of 2018 vis-à-vis 87 throughout 2017.  The 2018 tally included 32 cases in Southeast Asian waters and 48 along African shores – representing 75% of the total. To put this figure into perspective, Asian behemoths India and China – despite their vast shorelines – recorded only 2 cases of piracy each during the study period. Russia had none. In terms of hostages taken, the IMB tally read 102 in H1 2018 vs 63 in H1 2017.

Piracy adds to shipping and retail costs worldwide as security, insurance and salaries are hiked to match associated risks in maritime transport. Merchant vessels will also take longer and costlier routes to avoid piracy hotspots.

United Nations Office on Drugs and Crime (UNODC) report in 2016 sums up the perils ahead:

As over 90% of global trade is carried out by sea, the economic effects of maritime crime can be crippling. Maritime crime includes not only criminal activity directed at vessels or maritime structures, but also the use of the high seas to perpetrate transnational organized crimes such as smuggling of persons or illicit substances.  These forms of maritime crime can have devastating human consequences.

Indeed, cases of human trafficking, organ harvesting, and the smuggling of illicit substances and counterfeit goods are proliferating worldwide in tandem with rising systemic debt and suspect international agendas.

Australia offers a case in point. While it fantasizes over a Quad of allies in the Indo-Pacific – to “save Asians from China” – criminal elements from Hong Kong, Malaysia to squeaky-clean Singapore have been routinely trafficking drugs, tobacco and people right into Sydney harbour for years,  swelling the local organised crime economy to as much as $47.4 billion (Australian dollars presumably) between 2016 and 2017.

With criminal elements expected to thrive during a severe recession, they will likely enjoy a degree of prosecutorial shielding from state actors and local politicians. But this is not a Southeast Asian problem alone; any superpower wishing to disrupt Asia-Europe trade arteries – the main engine of global growth – will have targets of opportunity across oceans and lands.  The US-led war against Syria had not only cratered one potential trans-Eurasia energy and trade node, it served as a boon for child traffickingorgan harvesting and slavery as well. Yet, it is President Bashar al-Assad who is repeatedly labelled a “butcher” by the Anglo-American media.

Ultimately, industries in Asia and Europe will seek safer transit routes for their products. The inference here is inevitable: the greatest logistical undertaking in history – China’s Belt and Road Initiative (BRI) – will be highly dependent on Russian security umbrella, particularly in Central Asia. Russia also offers an alternative transit option via the Northern Sea Route, thereby avoiding any potential pan-Turkic ructions in Central Asia in the future.

Russo- and Sinophobia explained?

In retrospect, Washington’s reckless policies post-Sept 11 2001 seem aimed at disrupting growing synergies between Asia and Europe. This hypothesis helps explain the relentless US-led agitprops against Russia, China and Iran.

When the gilet jaunes (yellow vest) protests rocked France weeks ago, it was only a matter of time before some pundits blamed it on Russia. US President Donald J. Trump cheered on; just as “billionaire activist” George Soros celebrated the refugee invasion of Europe and the Arab Spring earlier.  If the yellow vest contagion spreads to the Western half of Europe, its economies will flounder. Cui bono? A Russia that can reap benefits from the two-way BRI or Arctic trade routes or a moribund United States that can no longer rule roost in an increasingly multipolar world?

Trump’s diplomatic downgrade of the European Union and his opposition to the Nord Stream 2gas pipeline matches this trade-disruption hypothesis, as do pressures applied on India and China to drop energy and trade ties with Iran.  Washington’s trade war with Beijing and recent charges against Huawei – arguably Asia’s most valuable company – seem to fit this grand strategy.

If China concedes to importing more US products, Europe will bear the consequences. Asians love European products ranging from German cars to Italian shoes and Europe remains the favourite vacation destination for its growing middle class. Eastern European products and institutions are also beginning to gain traction in Asia. However, these emerging economies will suffer if their leaders cave in to Washington’s bogeyman fetish.

Even if Europe is somehow taken out of the trade equation, greater synergy between the RIC (Russia, India and China) nations may be enough – at least theoretically – to pull their nations through anticipated global volatilities ahead.

In the meantime, as the US-led world crumbles, it looks like Russia is patiently biding its time to become the security guarantor and kingmaker of Asia-Europe trade.  A possible state of affairs wrought more by American inanity rather than Russian ingenuity…

Dr Mathew Maavak is a regular commentator on risk-related geostrategic issues.

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Shaun RameweOlivia KrothBrigitte MeierNormski1 Recent comment authors
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Olivia Kroth
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Of course Russia, India and China are much richer and better off that the miserly USA, where they cannot even afford payment for the new WALL.

MAGA? Not “bigly” but “poorly”.

Normski
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Normski

Don’t you just love watching USA slowly going down the pan – I certainly do!. Pass the popcorn, it could be a long night!.

Olivia Kroth
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Hahahaha! Of course I love watching the USA slowly going down the pan. That is a very great pleasure for me. I will pass some rice crackers (made in China) and delicious zakouski (made in Russia). Please help yourself.

Brigitte Meier
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Brigitte Meier

The US would gain way more from joining into the BRI and trade with Russia, China and Iran instead of scheming ever new atrocities to disrupt and destroy the BRI. The BRI is the enactment of the internet in three dimensions. It will be the future for all. For the USA to act as spoiler is self-defeating,

Olivia Kroth
Guest

Russia, China and Iran do not want the US to join their association. The US is an international pariah.

Shaun Ramewe
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Shaun Ramewe

Fair-trading pro-democracy anti-terrorism sovereignty-respecting multi-polar truth-telling Russia wins over the complete opposite.

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The conclusion of Russiagate, Part II – news fatigue across America

The daily barrage of Russiagate news may have been a tool to wear down the American public as the Deep State plays the long game for control.

Seraphim Hanisch

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Presently there is a media blitz on across the American news media networks. As was the case with the Russiagate investigation while it was ongoing, the conclusions have merely given rise to a rather unpleasant afterbirth in some ways as all the parties involve pivot their narratives. The conclusion of Russiagate appears to be heavily covered, yet if statistics here at The Duran are any indication, there is a good possibility that the public is absolutely fatigued over this situation.

And, perhaps, folks, that is by design.

Joseph Goebbels had many insights about the use of the media to deliver and enforce propaganda. One of his quotes runs thus:

The best propaganda is that which, as it were, works invisibly, penetrates the whole of life without the public having any knowledge of the propagandistic initiative.

and another:

That is of course rather painful for those involved. One should not as a rule reveal one’s secrets, since one does not know if and when one may need them again. The essential English leadership secret does not depend on particular intelligence. Rather, it depends on a remarkably stupid thick-headedness. The English follow the principle that when one lies, it should be a big lie, and one should stick to it. They keep up their lies, even at the risk of looking ridiculous.

If there has ever been a narrative that employed these two principles, it is Russiagate.

A staggering amount of attention has been lavished on this nothing-burger issue. Axios reports that an analytics company named Newswhip tallied an astounding 533,074 web articles published about Russia and President Trump and the Mueller investigation (a number which is being driven higher even now, moment by moment, ad nauseam). Newsbusters presently reports that the networks gave 2,284 minutes to the coverage of this issue, a number which seems completely inaccurate because it is much too low (38 hours at present), and we are waiting for a correction on this estimate.

Put it another way: Are you sick of Russiagate? That is because it has dominated the news for over 675 days of nearly wall-to-wall news cycles. The political junkies on both sides are still pretty jazzed up about this story – the Pro-Trump folks rejoicing over the presently ‘cleared’ status, while of course preparing for the upcoming Democrat / Deep State pivot, and the Dems in various levels of stress as they try to figure out exactly how to pivot in such a manner that they do not lose face – or pace – in continuing their efforts to rid their lives of the “Irritant-in-Chief” who now looks like he is in the best position of his entire presidency.

But a lot of people do not care. They are tired.

I hate to say it (and yes, I am speaking personally and directly), but this may be a dangerous fatigue. Here is why:

The barrage of propaganda on this issue was never predicated on any facts. It still isn’t. However, as we noted a few days ago, courtesy of Fox News’ Tucker Carlson, at present, 53% of US registered voters believe that the Trump campaign worked with Russia to influence the 2016 election.

That means 53% of the voting public now believes something that is totally false.

Many of these people are probably simply exhausted from the constant coverage of this allegation as well. So when the news came out Sunday night that there was no evidence of collusion and no conclusive evidence, hence, of obstruction of justice by the Trump Administration – in other words, this whole thing was a nothing burger – will this snap those 53% back into reality?

Probably not. Many of them may well be so worn down that they no longer care. Or worse, they are so worn out that they will continue to believe the things they are told that sustain the lie, despite its being called out as such.

C.S. Lewis wrote about this peculiarity of human nature, in particular in the seventh book of his Chronicles of Narnia. After a prolonged and fierce assault on the sensibilities of the Narnians with the story that Aslan, the Christ figure of this world, was in fact an angry overlord, selling the Narnians themselves into slavery, and selling the whole country out to its enemy, with the final touch being that Aslan and the devilish deity of the enemy nation were in fact one and the same, the Narnians were unable to snap back to reality when it was shown conclusively and clearly that this was in fact not the case.

The fear that was instilled from the use of false narratives persisted and blocked the animals from reality.

Lewis summarized it this way through the thoughts of Tirian, the lead character in this tale:

Tirian had never dreamed that one of the results of an Ape’s setting up as a false Aslan would be to stop people from believing in the real one. He had felt quite sure that the Dwarfs would rally to his side the moment he showed them how they had been deceived. And then next night he would have led them to Stable Hill and shown Puzzle to all the creatures and everyone would have turned against the Ape and, perhaps after a scuffle with the Calormenes, the whole thing would have been over. But now, it seemed, he could count on nothing. How many other Narnians might turn the same way as the Dwarfs?

This is part of the toll this very long propaganda campaign is very likely to take on many Americans. It takes being strongly informed and educated on facts to withstand the withering force of a narrative that never goes away. Indeed, if anything, it takes even more effort now, because the temptation of the pro-Trump side will be to retreat to a set of political talking points that, interestingly enough, validate Robert Mueller’s “integrity” when only a week ago they were attacking this as a false notion.

This is very dangerous, and even though Mr. Trump and his supporters won this battle, if they do not come at this matter in a way that shows education, and not merely the restating of platitudes and talking points that “should be more comfortable, now that we’ve won!”

The cost of Russiagate may be far higher than anyone wants it to be. And yes, speaking personally, I understand the fatigue. I am tired of this issue too. But the temptation to go silent may have already taken a lot of people so far that they will not accept the reality that has just been revealed.

Politics is a very fickle subject. Truth is extremely malleable for many politicians, and that is saying it very nicely. But this issue was not just politics. It was slander with a purpose, and that purpose is unchanged now. In fact things may even be more dangerous for the President – even risking his very life – because if the powers that are working behind the people trying to get rid of President Trump come to realize that they have no political support, they will move to more extreme measures. In fact this may have already been attempted.

We at The Duran reported a few months ago on a very strange but very compelling story that suggested that there was an attempted assassination and coup that was supposed to have taken place on January 17th of this year. It did not happen, but there was a parallel story that noted that the President may have been targeted for assassination already no fewer than twelve times.  Hopefully this is just tinfoil-hat stuff. But we have seen that this effort to be rid of President Trump is fierce and it is extremely well-supported within its group. There is no reason to think that the pressure will lighten now that this battle has been lost.

The stakes are much too high, and even this long investigation may well have been part of the weaponry of the group we sometimes refer to as the “Deep State” in their effort to reacquire power, and in their effort to continue to pursue both a domestic and geopolitical agenda that has so far shown itself to be destructive to both individuals and nations all over the world.

Speculation? Yes. Needless? We hope so. This is a terrible possibility that hopefully no reasonable person wants to consider.

Honestly, folks, we do not know. But we had to put this out there for your consideration.

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Parliament Seizes Control Of Brexit From Theresa May

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Schaeuble, Greece and the lessons learned from a failed GREXIT (Video)

The Duran Quick Take: Episode 117.

Alex Christoforou

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The Duran’s Alex Christoforou and Editor-in-Chief Alexander Mercouris examine a recent interview with the Financial Times given by Wolfgang Schäuble, where the former German Finance Minister, who was charged with finding a workable and sustainable solution to the Greek debt crisis, reveals that his plan for Greece to take a 10-year “timeout” from the eurozone (in order to devalue its currency and save its economy) was met with fierce resistance from Brussels hard liners, and Angela Merkel herself.

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Via FT

“Look where we’re sitting!” says Wolfgang Schäuble, gesturing at the Berlin panorama stretching out beneath us. It is his crisp retort to those who say that Europe is a failure, condemned to a slow demise by its own internal contradictions. “Walk through the Reichstag, the graffiti left by the Red Army soldiers, the images of a destroyed Berlin. Until 1990 the Berlin Wall ran just below where we are now!”

We are in Käfer, a restaurant on the rooftop of the Reichstag. The views are indeed stupendous: Berlin Cathedral and the TV Tower on Alexanderplatz loom through the mist. Both were once in communist East Berlin, cut off from where we are now by the wall. Now they’re landmarks of a single, undivided city. “Without European integration, without this incredible story, we wouldn’t have come close to this point,” he says. “That’s the crazy thing.”

As Angela Merkel’s finance minister from 2009 to 2017, Schäuble was at the heart of efforts to steer the eurozone through a period of unprecedented turbulence. But at home he is most associated with Germany’s postwar political journey, having not only negotiated the 1990 treaty unifying East and West Germany but also campaigned successfully for the capital to move from Bonn.

For a man who has done so much to put Berlin — and the Reichstag — back on the world-historical map, it is hard to imagine a more fitting lunch venue. With its open-plan kitchen and grey formica tables edged in chrome, Käfer has a cool, functional aesthetic that is typical of the city. On the wall hangs a sketch by artists Christo and Jeanne-Claude, who famously wrapped the Reichstag in silver fabric in 1995.

The restaurant has one other big advantage: it is easy to reach from Schäuble’s office. Now 76, he has been confined to a wheelchair since he was shot in an assassination attempt in 1990, and mobility is an issue. Aides say he tends to avoid restaurants if he can, especially at lunchtime.

As we take our places, we talk about Schäuble’s old dream — that German reunification would be a harbinger of European unity, a step on the road to a United States of Europe. That seems hopelessly out of reach in these days of Brexit, the gilets jaunes in France, Lega and the Five Star Movement in Italy.

Some blame Schäuble himself for that. He was, after all, the architect of austerity, a fiscal hawk whose policy prescriptions during the euro crisis caused untold hardship for millions of ordinary people, or so his critics say. He became a hate figure, especially in Greece. Posters in Athens in 2015 depicted him with a Hitler moustache below the words: “Wanted — for mass poverty and devastation”.

Schäuble rejects the criticism that austerity caused the rise of populism. “Higher spending doesn’t lead to greater contentment,” he says. The root cause lies in mass immigration, and the insecurities it has unleashed. “What European country doesn’t have this problem?” he asks. “Even Sweden. The poster child of openness and the willingness to help.”

But what of the accusation that he didn’t care enough about the suffering of the southern Europeans? Austerity divided the EU and spawned a real animus against Schäuble. I ask him how that makes him feel now. “Well I’m sad, because I played a part in all of that,” he says, wistfully. “And I think about how we could have done it differently.”

I glance at the menu — simple German classics with a contemporary twist. I’m drawn to the starters, such as Oldenburg duck pâté and the Müritz smoked trout. But true to his somewhat abstemious reputation, Schäuble has no interest in these and zeroes in on the entrées. He chooses Käfer’s signature veal meatballs, a Berlin classic. I go for the Arctic char and pumpkin.

Schäuble switches seamlessly back to the eurozone crisis. The original mistake was in trying to create a common currency without a “common economic, employment and social policy” for all eurozone member states. The fathers of the euro had decided that if they waited for political union to happen first they’d wait forever, he says.

Yet the prospects for greater political union are now worse than they have been in years. “The construction of the EU has proven to be questionable,” he says. “We should have taken the bigger steps towards integration earlier on, and now, because we can’t convince the member states to take them, they are unachievable.”

Greece was a particularly thorny problem. It should never have been admitted to the euro club in the first place, Schäuble says. But when its debt crisis first blew up, it should have taken a 10-year “timeout” from the eurozone — an idea he first floated with Giorgos Papakonstantinou, his Greek counterpart between 2009 and 2011. “I told him you need to be able to devalue your currency, you’re not competitive,” he says. The reforms required to repair the Greek economy were going to be “hard to achieve in a democracy”. “That’s why you need to leave the euro for a certain period. But everyone said there was no chance of that.”

The idea didn’t go away, though. Schäuble pushed for a temporary “Grexit” in 2015, during another round of the debt crisis. But Merkel and the other EU heads of government nixed the idea. He now reveals he thought about resigning over the issue. “On the morning the decision was made, [Merkel] said to me: ‘You’ll carry on?’ . . . But that was one of the instances where we were very close [to my stepping down].”

It is an extraordinary revelation, one that highlights just how rocky his relationship with Merkel has been over the years. Schäuble has been at her side from the start, an éminence grise who has helped to resolve many of the periodic crises of her 13 years as chancellor. But it was never plain sailing.

“There were a few really bad conflicts where she knew too that we were on the edge and I would have gone,” he says. “I always had to weigh up whether to go along with things, even though I knew it was the wrong thing to do, as was the case with Greece, or whether I should go.” But his sense of duty prevailed. “We didn’t always agree — but I was always loyal.”

That might have been the case when he was a serving minister, but since becoming speaker of parliament in late 2017 he has increasingly distanced himself from Merkel. Last year, when she announced she would not seek re-election as leader of the Christian Democratic Union, the party that has governed Germany for 50 of the past 70 years, Schäuble openly backed a candidate described by the Berlin press as the “anti-Merkel”. Friedrich Merz, a millionaire corporate lawyer who is the chairman of BlackRock Germany, had once led the CDU’s parliamentary group but lost out to Merkel in a power struggle in 2002, quitting politics a few years later. He has long been seen as one of the chancellor’s fiercest conservative critics — and is a good friend of Schäuble’s.

Ultimately, in a nail-biting election last December, Merkel’s favoured candidate, Annegret Kramp-Karrenbauer, narrowly beat Merz. The woman universally known as “AKK” is in pole position to succeed Merkel as chancellor when her fourth and final term ends in 2021.

I ask Schäuble if it’s true that he had once again waged a battle against Merkel and once again lost. “I never went to war against Ms Merkel,” he says. “Everybody says that if I’m for Merz then I’m against Merkel. Why is that so? That’s nonsense.”

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