New Era of American Financial Warfare

New Era of Financial Warfare

bodhita

Ambrose Evans-Pritchard, in Thursday’s Daily Telegraph, reports on new ways the U.S. is carrying out financial warfare against Russia by stealth. He writes that the U.S. has created a financial “neutron bomb” that can target any country and is now targeting Russia. He claims that for the past 12 years an “elite cell” at the U.S. Treasury has been designing ways to bring almost any country to its knees without firing a shot.

“It is a new kind of war, like a creeping financial insurgency, intended to constrict our enemies’ financial lifeblood, unprecedented in its reach and effectiveness,” says Juan Zarate, the Treasury and White House official who led the policy after 9/11. “The new geo-economic game may be more efficient and subtle than past geopolitical competitions, but it is no less ruthless and destructive,” he writes in his book Treasury’s War: The Unleashing of a New Era of Financial Warfare.

This includes shutting off market access for Russian banks, companies, and state bodies with $714 billion of debt. He calls it the “scarlet letter,” created under Section 311 of the U.S. Patriot Act, which was devised to be used against terrorist financiers. Once a bank is named, it will be caught in a “boa constrictor’s lethal embrace,” as Zarate puts it. Even if the bank has no operations in the U.S., European banks will not violate it.

Evans-Pritchard continues, “The U.S. Treasury faces a more formidable prey with Russia, the world’s biggest producer of energy with a $2 trillion economy, superb scientists, and a first-strike nuclear arsenal. It is also tightly linked to the German and East European economies,” and therefore the U.S. risks destabilizing its own alliance system. Furthermore, President Vladimir Putin knows this as well and no doubt is prepared to take counter-moves.

Zarate now advises HSBC on how to stop in-house money laundering, which is a laugh in itself.

Evans-Pritchard’s column cites Princeton Professor Harold James, who compares such actions to the pre-First World War attempts by Britain and France to use financial warfare against Germany. Warning of the dangers of such action, James said, in a piece for Project Syndicate, “Lehman was a small institution compared with the Austrian, French, and German banks that have become highly exposed to Russia’s financial system. A Russian asset freeze could be catastrophic for European — indeed, global — financial markets.”

Evans-Pritchard seems to be familiarizing himself with the Classics, as he cites how the sanction imposed by Pericles turned out badly. “So are the salutary lessons. Pericles tried to cow the city state of Megara in 432 B.C. by cutting off trade access to markets of the Athenian Empire. He set off the Peloponnesian Wars, bringing Sparta’s Hoplite infantry crashing down on Athens. Greece’s economic system was left in ruins, at the mercy of Persia. That was a taste of asymmetry.”

Bodhita | News & Analysis

Obama’s “al-CIA-da” Strategy–Fight ISIS To Give Al-Nusra Time To Grow Strong

[Al Golani is a creation of the intelligence agencies (SEE: The layers of fiction surrounding Al Nusra chief Abu Mohammed Al Jolani).  He is credited with leading one of the currents generated by the break-up of Al-Qaida In Iraq, the same terrorist outfit which has been holding Lebanese soldiers hostage, after beheading 4 of them.  Nusra is fighting a holding action on the Leb. Army, giving ISIS time to lay in supplies the mountains of the east, preparing for an anticipated major assault upon Lebanon from Qalamoun in Syria.  Lebanon is expected to join a US anti-ISIS coalition, while it fights al-Nusra without proper weapons. 

Truth be told, Lebanon is expected to fold-up and play dead in the face of a sustained assault by the offspring of al-Q In Iraq.  Both ISIS  and al-Nusra are “al-CIA-da.”]

Nusra Front Quietly Rises in Syria as Islamic State Targeted

daily star LEB

W460

The Nusra Front, Syria’s al-Qaida affiliate, is consolidating power in territory stretching from the Turkish border to central and southern Syria, crushing moderate opponents and forcibly converting minorities using tactics akin to its ultraconservative rival, the Islamic State group.

But while the Islamic State group gets most of the attention largely because its penchant for gruesome propaganda, the Nusra Front quietly has become one of the key players in the four-year civil war, compromising other rebel groups the West may try to work with while increasingly enforcing its own brutal version of Islamic law.

Its scope of influence now abuts the Golan Heights bordering Israel, and its membership largely composed of Syrian nationals refuse any negotiations with the government of embattled President Bashar Assad, further complicating the brutal conflict.

“The Nusra Front will most likely outlast ISIS in Syria, and will represent a severe and existential threat to the aspirations of the Syrian people in terms of a pluralistic, democratic society,” said Fawaz A. Gerges, director of the Middle East Center at the London School of Economics, using an alternate acronym for the extremist group.

The Islamic State group helped create the Nusra Front, providing financing, manpower and military hardware in 2012. But the group and its patron eventually had a falling out in 2013 for ideological as well as strategic reasons. The Nusra Front, while loyal to al-Qaida, has cooperated with other Syrian rebel factions in the fight to oust Assad.

In recent months, the group has overrun rebel strongholds in Syria’s Idlib province, trouncing two prominent, U.S.-backed rebel factions, Harakat Hazm and the Syria Revolutionaries Front. Following the deadly clashes, SRF leader Jamal Maarouf fled to Turkey and Hazm announced it was dissolving.

A Middle East-based Western diplomat said the Nusra Front began its attacks on moderate, U.S.-backed rebel factions after the American-led coalition began airstrikes in September targeting both the Islamic State group and the Khorasan group, which Washington says is a special cell within Nusra plotting attacks against Western interests. U.S. officials last week said airstrikes have hit as many as 17 separate targets connected to the Khorasan group.

The Nusra Front responded with a series of spectacular attacks targeting moderate rebel groups and forces loyal to Assad in northwestern Syria, the diplomat said.

It “has now created coherent control of a strategic area between Idlib and Hama (provinces) in northwestern and central Syria,” said the diplomat, who spoke on condition of anonymity as he wasn’t authorized to brief journalists.

At the same time, the group has become increasingly aggressive toward local populations. In January, members of the group reportedly shot a woman dead in front of a crowd in Idlib after they accused her of being a prostitute. The group also has carried out public lashings, crucifixions and kidnappings — though it has not publicized the atrocities like the Islamic State group.

Activists in southern Syria say the Nusra Front was behind the January bombing that destroyed the shrine of a 13th century Muslim scholar. The Nusra Front issued a statement denying it was involved but activists say its members were seen placing the bombs.

“They’re trying to come across as rational, moderate, more dynamic,” Gerges said. “They don’t celebrate savagery in the same way like the Islamic State group.”

Residents say among the group’s most worrisome action so far is forcing members of the minority Druze sect living in Idlib’s Jabal al-Summaq region to convert to Sunni Islam.

The Druze, a 10th century offshoot of Shiite Islam, made up about 5 percent of Syria’s pre-war population of 23 million people. In addition to Syria, Lebanon and Israel have large Druze communities.

“The Druze in Idlib are being subjected today to religious persecution. The Nusra Front carried out shameful acts. They have dug graves and damaged shrines,” said former Lebanese Cabinet minister Wiam Wahhab, a Druze politician with close ties to the community in Syria.

Activists estimate several hundred Druze have been forced to convert. A purported Nusra Front document, posted online and dated Feb. 1, outlined an agreement that saw Druze in 14 villages in Idlib convert. Under the deal, the Druze will implement Islamic laws, destroy tombs, impose Islamic dress on women and stop having mixed-sex schools. Idlib-based activist Asaad Kanjo said many Druze there have fled.

“You are likely to see this sort of behavior from Nusra in Idlib province because they are increasingly the dominant party in this part of Syria, and are in the midst of a concerted effort to eliminate rivals there,” said Faysal Itani, a resident fellow at the Atlantic Council. “Nusra ultimately wants to rule Syria.”

An opposition activist in Kafranbel, a town in Idlib, said the group has established an elaborate network of social services and Shariah courts and rules uncontested. Remaining rebel groups in the province operate only with Nusra’s approval, he said.

However, the group’s increasingly belligerent approach toward other rebel groups is starting to alienate former allies, said the activist, who spoke on condition of anonymity for fear of reprisals.

The main Western-backed Syrian group, the Syrian National Coalition, which in the past has been wary not to criticize Nusra, has changed its tune.

“We are concerned over Al Nusra’s latest actions and abuses against civilians and (Free Syrian Army) fighters,” said spokesman Salem al-Meslet, adding that the abuses were akin to the Islamic State group and Syrian government forces’ “criminal behavior.”

The criticism has led the Nusra Front to issue a rare statement defending itself, saying its target are only those proven to have committed “crimes” against Muslims and fighters.

“It was not our intention on any day to spread influence and expand and control the worshippers and the country,” the statement from its Al-Manara Al-Bayda media arm said. “Rather, our goal and aim is to lift injustice from the oppressed, and push away every enemy that attacks the honor, religion, and sanctities of the Muslims.”

Pushing Putin Into An Existential Confrontation

Putin

Russia’s Prime Minister Vladimir Putin attends the World Health Organisation meeting on healthy lifestyle in Moscow, April 28, 2011.

Vladimir Putin sees Russia and the West as being locked in “an existential struggle,” reports USNI News, citing an expert at a Heritage Foundation event on Tuesday.

Eugene Rumer, the director of the Carnegie Endowment for International Peace’s Russia and Eurasia Program, told the audience at the event that the rising tensions between Russia and the NATO-orientated West was a cause for concern. Particularly at stake in any ramping up of hostilities are the Baltic States of Latvia, Lithuania, and Estonia.

Both Latvia and Estonia have large ethnic Russian populations which Rumer believes Putin “is not adverse to using … to make domestic trouble.”

If Putin starts using ethnic Russians to stir up trouble in those countries as he has done in Ukraine, then war just may be NATO’s only possible response, predicted Rumer. As Moscow becomes more assertive, this likelihood increases.

Russia “is more prone than before to look less kindly on engagement with the West,” Rumer said at the event.

This is especially true given the Russian military’s new doctrine. Signed into practice on December 26, 2014, it lists the expansion of NATO as the main external threat facing the stability and territorial integrity of Russia.

In a translation of the doctrine by Defence News, Russia states that NATO is “undermining global stability and violating the balance of power in the nuclear-missile sphere.”

To counter NATO’s influence, Russia’s military doctrine envisions the expansion of bilateral alliances between Moscow and potentially friendly countries such as China and Brazil, as well as the military reinforcement of three areas that Russia sees as geopolitical front lines — the Russian Baltic exclave of Kaliningrad, the Crimean peninsula, and the Arctic.

Russian soldiers in CrimeaA Russian soldier hold his weapon at Belbek airport in the Crimea region March 4, 2014.

Each of these regions can serve as a buffer against what Russia portrays as NATO’s aggressive expansion, while also functioning as a potential launching pad for Moscow-directed military excursions. NATO’s supreme commander, Gen. Philip Breedlove, warned at the beginning of March that Russia was already in the process of turning Crimea into a forward operating base against the alliance.

Since the start of the Ukraine crisis, Russia has been holding snap military drills along its borders with the Baltic States at an increasing pace raising concerns that the exercises could one day be used as a cover to launch a quick invasion of the Baltics.

The Telegraph reported on February 20 that General Sir Adrian Bradshaw, deputy commander of NATO forces in Europe and one of Britain’s most senior generals, warned that Russian snap exercises could lead to a possible invasion of NATO territory.

Bradshaw warned that the drills could be used “not only for intimidation and coercion but potentially to seize NATO territory, after which the threat of escalation might be used to prevent re-establishment of territorial integrity.”

If such an invasion were to occur, NATO would either be forced to respond — leading to an unpredictable military conflict in Europe — or the alliance would not respond and NATO would cease to function as a treaty-bound entity.

2009 German Analysis Documenting US Plan To Unleash Civil War In Ukraine

Imperial Geopolitics: Ukraine, Georgia and the New Cold War between NATO and Russia

IMI german

von: Martin Hantke | Veröffentlicht am:

1. Januar 2009

Zbigniew Brzezinski’s book The Grand Chessboard: American Primacy and Its Geostrategic Imperatives is essential reading for anyone wishing to understand current and future U.S., EU and NATO policy. Over ten years ago the former National Security Advisor gave a graphic description of the imperatives of imperial geopolitics. He argued that the U.S.A.’s position of supremacy should be preserved under all circumstances. To this end NATO, acting as a “bridgehead” of the U.S.A., should expand into Eurasia and take control of geostrategically important regions so as to prevent Russia’s resurgence as a powerful political force.

Brzezinski had in mind two countries or regions in particular: “Ukraine, a new and important space on the Eurasian chessboard is a geopolitical pivot because its very existence as an independent country helps to transform Russia. Without Ukraine, Russia ceases to be a Eurasian empire. Russia without Ukraine can still strive for imperial status, but it would then become a predominantly Asian imperial state, more likely to be drawn into debilitating conflicts with aroused Central Asians, who would then be supported by their fellow Islamic states to the south.” […] “However, if Moscow regains control over Ukraine, with its 52 million people and major resources as well as access to the Black Sea, Russia automatically again regains the wherewithal to become a powerful imperial state, spanning Europe and Asia.”1 Brzezinski argued further that there was an imperative need to gain control of the southern Caucasus, i.e. Armenia, Azerbaijan and Georgia, on Russia’s southern flank. The past master of U.S. geopolitics set out the aim and purpose of NATO policy with impressive clarity: “The United States and the NATO countries – while sparing Russia’s self-esteem to the extent possible, but nevertheless firmly and consistently – are destroying the geopolitical foundations which could, at least in theory, allow Russia to hope to acquire the status as the number two power in world politics that belonged to the Soviet Union.”2

In the years that followed, these words were systematically put into political practice with NATO taking its eastward expansion right up to Moscow’s borders. Furthermore, active Western support for the “colourful revolutions” in Georgia (2003) and Ukraine (2004) led to the sitting pro-Russian or neutral governments and presidents being ousted by pro-Western candidates.3 Russia regarded NATO’s policy as crossing the “red line”. As the war between Russia and Georgia in the summer of 2008 showed, Russia is no longer prepared to stand idly by in the face of further attempts at expansion. Nevertheless, the Western military alliance is doggedly pursuing its escalation policy, in which Ukraine and Georgia are now being offered NATO membership as a means of safeguarding the “successes” that have been scored. U.S. President Barack Obama is also in favour of these two countries joining NATO.4 The announcement that Michael McFaul, a hardliner on policy towards Moscow, is to be appointed senior director for Russian affairs at the National Security Council gives little cause for hope that Washington under its new president will abandon its aggressive, anti-Russian policy. This amounts to tacit acceptance that the New Cold War between NATO and Russia, invoked so frequently of late, will become a self-fulfilling prophecy.

Ukraine: “On someone else’s arse”

Even now, the approach to Ukraine is evidently still determined by Brzezinski’s recipes from the devil’s workshop of geopolitics. NATO accession and Europe’s energy supply are issues that are closely intertwined. Writing in Handelsblatt, Peter Zeihan from Strategic Forecast, the think-tank often referred to as the “shadow CIA”, described the complex geopolitical situation as follows: “On the one hand, the ‘orange’ revolution of 2004 led to the installation of a Ukrainian government hostile to Russia’s objectives. President Viktor Yushchenko would like to integrate his country into the European Union and NATO. For Russia that would be the kiss of death. Most of the infrastructure linking Russia with Europe – from pipelines to railway lines and high-voltage cables – is located in Ukraine. Industry and agriculture in both countries are closely interlinked. There are more Russians living in eastern Ukraine than anywhere else in the world outside Russia. The Russian Black Sea fleet is stationed in the Ukrainian port of Sevastopol because there are no reasonable alternatives. Ukraine stretches so far into southern Russia that a hostile power in the country could pose a threat to Moscow. Moreover, the country stretches so far eastwards that an antagonistic government there could even threaten Russia’s connections with the Caucasus. In a nutshell, if Ukraine slips out of Russia’s sphere of influence Russia will be forced completely onto the defensive in strategic terms. Vice versa, if Russia regains control in Kiev, the country could set itself up as a regional – and perhaps even a global – power.”5 It was to obviate such a scenario that Washington engaged in a further round of frenzied activity shortly before the end of U.S. President George W. Bush’s period in office. This activity was aimed at advancing Ukraine’s future membership of NATO. Martin Luther’s words to the effect that “Riding through a fire is easy on someone else’s arse” might perhaps have flashed through the mind of the then U.S. Secretary of State, Condoleezza Rice, as she walked up with Ukrainian Foreign Minister, Volodymyr Ohryzko, to sign the United States-Ukraine Charta on Strategic Partnership on 19 December 2008. Rice said: “The United States supports Ukraine’s integration into the Euro-Atlantic structures. And in that regard, I want to assure you that the declaration at Bucharest which foresees that Ukraine will be a member of NATO when it can meet those standards is very much at the center of our policy.” The Ukrainian Foreign Minister set great store by a strengthening of the presence of the United States in Ukraine, in particular through a diplomatic mission on the Crimean peninsula in the Black Sea.6

In addition to a programme of enhanced security cooperation intended to strengthen Ukraine’s candidacy for NATO membership, agreement was reached on close collaboration on energy issues. It was resolved inter alia that “In recognition of the importance of a well functioning energy sector, the parties intend to work closely together on rehabilitating and modernizing the capacity of Ukraine’s gas transit infrastructure.”7 This Charter on Strategic Partnership was signed against the backdrop of the gas dispute between Ukraine and Russia. Given Ukraine’s failure to pay its debts and the lack of any new agreement on deliveries of gas to Ukraine, supplies of Russian gas to Ukraine were stopped as of 1 January 2009. Within a few days the dispute began to have an effect on energy supplies throughout Europe. On 6 January 2009, Turkey, Bulgaria, Greece and Macedonia reported that deliveries through the Ukrainian transit pipelines had come to a halt. Supplies to Austria fell by 90%. There are a number of indications that Ukraine’s actions can only be explained by reference to the support it received from the U.S.A. That was the Russian view too: “The Russian gas company Gazprom has pinned responsibility for the gas dispute with Ukraine on the U.S.A. Gazprom declared on Tuesday that Ukraine’s actions are being directed by the U.S. government. Despite the deployment of EU observers the Ukraine is again removing gas from the transit pipelines. Russia is therefore unable to deliver supplies to the EU countries. Alexander Medvedev, Deputy Chairman of the Board of Executive Directors of the Russian energy giant, has accused the U.S.A. of fuelling the conflict.”8

In the case of both Georgia and Ukraine there is a close link between the gas dispute and support for their admission to NATO. In April 2008 the Bertelsmann Foundation concluded that Ukraine and Georgia were already closely integrated into “NATO’s working processes”. “Ever since it was founded in 1994, both countries have been part of the Partnership for Peace programme of the North Atlantic Alliance which is intended to promote individual cooperation between NATO and non-NATO countries. Cooperation has subsequently been extended. […] In their bilateral cooperation agreements with NATO both countries see far-reaching domestic reforms as a means of moving closer to the defence alliance. Such reforms principally concern the consolidation of internal democratic structures, but priority is also given to the fight against global terrorism and support for the operations and missions of the North Atlantic Alliance. The latter was one reason why U.S. President George W. Bush emphasized his efforts to have Ukraine and Georgia included in the Membership Action Plan. The progress made in integration into NATO’s defence structures puts into perspective the question that arose at the Bucharest summit about the steps Ukraine and Georgia will take after the provisional ‘no’ to their admission to the Membership Action Plan. Their path will inevitably take them into NATO.”9

Germany is playing a double role here. On the one hand it has joined France in rejecting an accelerated accession procedure for Ukraine, which the U.S.A. favoured; on the other hand it is playing a risky game by not placing any obstacles in the path of fundamental approval of Ukraine’s accession to NATO. The German Foreign Office has itself provided an apt description of this double role: “At the NATO summit in Bucharest in April 2008 Ukraine was in principle given the prospect of membership (‘We agreed today that these countries (i.e. Ukraine and Georgia) will become members of NATO’). Ukraine was not granted a Membership Action Plan (MAP); instead, a comprehensive review process was initiated.”10 This granting of prospective membership to Ukraine for the first time, combined with Georgia’s aggression shortly afterwards against Abkhazia and South Ossetia, proved the last straw for Moscow.

Georgia: a geopolitical prize

A look at the map quickly makes it clear why the Southern Caucasus is so important. Georgia provides the only opportunity of supplying Europe with gas and oil from the resource-rich countries of Central Asia and of transporting goods and products to Europe by land from China and Kazakhstan. The Nabucco pipeline project is intended to help reduce Europe’s “dependence” on Russian gas imports, which currently account for 40% of its supplies and are expected to climb to even higher levels. According to the European press service EurActiv, “The US has long been pushing for the construction of oil and natural gas pipelines from the Caspian basin that would bypass Russia, especially via Georgia.”11 The project is a top priority for the European Union, too. During his period as representative of the EU Council President in 2006 the Austrian Minister of Economics Martin Bartenstein said: “[The] Nabucco pipeline is Europe’s most important energy project.”12

For both the EU Member States and the NATO countries Georgia provides the geographical terrain that is essential to cutting Russia off from the purchasers of its energy exports. Russia’s countermeasures include three pipeline projects – Nord Stream (Baltic Sea pipeline), South Stream (Russian-Italian gas pipeline through the Black Sea via Varna in Bulgaria) and Blue Stream (from Russia through the Black Sea into Turkey) – as well as the building of direct energy lines to western and southern Europe to ensure the unobstructed export of energy free from any checks or controls by former Eastern Bloc states very favourably disposed to the U.S.A. This was why the U.S.A., in particular, played the Georgian card in the hope of containing Russia’s political influence in Europe and preventing its rise to the status of an industrial power.

Western support for the war

Germany continues to play a significant part in the arming of Georgia. The Federal Armed Forces (Bundeswehr) mostly train Georgian officers as part of the general staff training course which includes participants from other countries. Over the past few years the Bundeswehr has been host to a steady stream of high-ranking military delegations from Georgia. In addition, G 36 rifles manufactured by Heckler & Koch have been delivered to Georgia. The bulk of the training has been carried out by the U.S.A., however. The U.S. Army has trained Georgian soldiers “to bring the armed forces of Georgia, a loyal ally of Washington, up to NATO standards as an outpost in the Caucasus.”13 In 2006 alone, says the German news magazine Der Spiegel, the U.S.A. supported Georgia to the tune of 80 million U.S. dollars, 13 million of which went on the payment of “military supplies and services” as well as the training of soldiers. In addition the U.S.A. has helped Georgia by regularly modernising its fleet and delivering helicopters free of charge.14 The considerable extent of U.S. military assistance, which has “enabled the Pentagon to overhaul Georgia’s forces from bottom to top”, is described by the New York Times as follows: “At senior levels, the United States helped rewrite Georgian military doctrine and train its commanders and staff officers. At the squad level, American marines and soldiers trained Georgian soldiers in the fundamentals of battle.”15
All told, therefore, the Georgian armed forces have over five infantry brigades each numbering 2,000 men. In addition there are the reservist units whose level of training is far inferior. The Georgian government talks officially of 37,000 soldiers and 100,000 reservists. Since Mikhail Saakashvili took office, Georgia’s military spending has increased significantly: “In 2003 it amounted to 52 million lari (24 million U.S. dollars), whereas in 2006 that figure had tripled to 139 million lari (78 million U.S. dollars). Real expenditure is much higher, however. Anyone liable to be called up for military service, for example, can buy themselves out of the army – four-fifths of the money goes straight to the ministry.”16

There is also brisk cooperation between Georgia and NATO. In July 2008, a joint manoeuvre was held as part of the Partnership for Peace Programme in which a total of 1,630 military personnel, including 1,000 Americans and 600 Georgians, took part.17 In addition, the Georgian army has been – and still is – prominently involved in the war in Iraq, which is in contravention of international law, as well as in Afghanistan and Kosovo. In 2008, Georgia had 2,000 solders in Iraq, the third-largest contingent of the “Coalition of the Willing”. However, after the Georgian army had been repulsed in South Ossetia in August 2008, the U.S. Air Force flew the Georgian units stationed in Iraq back to the home front to provide help while the fighting was still in progress. Given the massive campaign undertaken by the U.S.A. and its allies to build up the country’s military, it is barely credible that, while the U.S.A. might not actually have given the green light, it was not fully informed of the pending attack and subsequently kept silent about it.

At any rate, the Russians are certain that the attack took place with support from Washington. The Russian ambassador to NATO, Dimitri Rogozin, made a statement to the effect that Saakashvili agreed the attack with his “backers”. It is clear to whom he was referring.18 Vladimir Vasilyev, Chairman of the Duma Security Committee, summed up the Russian point of view as follows: “The longer the matter goes on, the better the world will come to understand that Georgia would never have been capable of it [the attack on South Ossetia] without the United States”.19 In an interview for the German TV station ARD the Russian Prime Minister Vladimir Putin made his views of the U.S.A.’s behaviour perfectly clear: “One cannot help thinking that the American leadership knew of the planned action and, indeed, participated in it […] in order to organise a small-scale but successful war. And, if things went wrong, to force Russia into the role of the enemy.”20

Russia’s counter-attack

It is, indeed, hard to believe that the Georgian attack took place without any prior consultation with the U.S.A. Yet it must have been clear to the U.S. government that the Georgian army would be crushed in battle, which was precisely what happened. The question arises, therefore, as to Washington’s motives. Did it simply miscalculate in assuming that Russia would quietly accept the Georgian advance? It is hard to imagine but conceivable nonetheless. The other explanation is that the primary objective was to stir up a conflict with Russia so as to make the European Union toe an even more anti-Russian line and that Saakashvili came in handy here in the role of useful idiot, albeit at the expense of the people in the region. The matter cannot be clarified with any degree of certainty, although the latter explanation would appear more plausible.

At all events, the calculation backfired, because Russia seized the opportunity provided by the Georgian attack to improve its own position in the Caucasus. It is also very hard to imagine that Moscow was not informed of Georgia’s invasion plans. It was evidently well prepared for such an eventuality. In July, 8,000 Russian soldiers carried out an exercise simulating the repulsion of a Georgian attack. That might also explain why the Georgian troops were halted within 24 hours and the Russian troops gained the upper hand relatively quickly. Hence to describe Georgia’s war of aggression as the result of President Saakashvili stumbling into a Russian trap is not very convincing. Whether the Russians were well prepared or not, the fact of the matter is that Georgia engaged in a war of aggression.

In the course of the conflict Russia succeeded in shattering confidence in Georgia’s reliability as a transit country for future Caspian energy supplies. Georgia’s President Mikhail Saakashvili himself said that “one of the main reasons for the Russian attack was that Georgia already has the Baku-Tblissi-Ceyhan pipeline (BTC), which has been laid one metre underground from end to end. This is intended to circumvent Russia.”21 That suspicion is not as mistaken as it might seem. After all, the opening of the BTC pipeline in May 2006, over which Washington and Moscow had wrangled bitterly for almost a decade, was one of the biggest geopolitical successes in the U.S.A.’s plans to roll back Russian influence in the region. “The Georgian security adviser, Alexander Lomaia, says that the Russians dropped six bombs but failed to hit the pipeline. If that is true, it would indicate that Russia’s military action was conducted in pursuit of other, more far-reaching strategic goals than merely preventing a humanitarian crisis in South Ossetia.”22

The Nabucco project was also dealt a heavy blow. According to Ed Chow from the Center for Strategic and International Studies, “Russia has raised serious doubts in the minds of Western lenders and investors […] as to whether a pipeline through Georgia is safe from attacks or beyond the control of the Kremlin.”23 Nevertheless, EU Energy Commissioner Andris Piebalgs attempted to give an assurance that the EU was sticking to its plan to build the Nabucco pipeline through Georgia despite the Caucasus conflict: “This infrastructure is needed”, Piebalgs said.24

For the first time since the end of the (old) Cold War Russia has thus ended a Western attempt at expansion by military means. That alone is sufficient to underline the dimensions of the Russian-Georgian war. At the same time the invasion of Georgia is a clear signal to the West that in future Russia will once again have to be taken into account in international power politics. A Strategic Forecast analysis says: “Russia has demonstrated three things with its operation in South Ossetia. Firstly, its army can carry out successful operations, which foreign observers have doubted. Secondly, the Russians can defeat forces trained by U.S. military instructors. Thirdly, Russia has shown that the U.S.A. and NATO are not in a position that would enable them to intervene militarily in this conflict.”25

Astonishing one-sidedness

It is hardly surprising that the Russian response to the Georgian invasion was fiercely criticised by the U.S., which almost unreservedly took Georgia’s side. Zbigniew Brzezinski was vociferous in his response, comparing Putin’s actions with those of Hitler. He went on to say that Moscow’s behaviour “can lead to exclusion and economic and financial sanctions. If Russia continues down this road it must ultimately be isolated within the community of states.”26
The European Union adopted an equally one-sided stance: “The European Council is gravely concerned by the open conflict which has broken out in Georgia, by the resulting violence and by the disproportionate reaction of Russia.”27 These were the words used by the European heads of state and government on 1 September in commenting on the events in the Caucasus. They failed to mention, let alone criticise, the fact that Georgia’s aggression was clearly what had unleashed the war. The statement continues by severely criticising Russia alone. Thus the heads of state and government “strongly condemn Russia’s unilateral decision to recognise the independence of Abkhazia and South Ossetia.” In stark contrast to the policy of recognizing Kosovo that was pursued by the vast majority of EU Member States, the European Council “recalls that a peaceful and lasting solution to the conflict in Georgia must be based on full respect for the principles of independence, sovereignty and territorial integrity recognised by international law, the Final Act of the Helsinki Conference on Security and Cooperation in Europe and United Nations Security Council resolutions.”27

There were occasional vehement demands for even more drastic action against Russia. The Chairman of the European Parliament’s Foreign Affairs Committee, Jacek Saryusz-Wolski (EPP), advocated an EU position that is “tougher than that of NATO.”28 The fact that the hardliners were not able to have their way entirely has to do with the specific constellation of interests that have made this appear inopportune, particularly from a German perspective. On the one hand there is a desire to show Moscow who is in charge in Europe but, on the other, there is a wish not to spoil things completely with Russia, because business there is simply too profitable.29 Nevertheless, Germany is in almost full accord with NATO’s escalation policy.

(Energy) NATO is put into position

In November 2006 U.S. Senator Richard Lugar, a leading NATO strategist, literally went on the offensive. On the fringes of the NATO summit in Riga he criticised Moscow for its attempts to use oil as a “weapon” against the West and proposed the setting up of an “Energy NATO”. The underlying idea is that in future NATO should treat any interruption of oil and gas supplies as it would a military attack (see article by Tobias Pflüger).

In January 2008, five high-ranking NATO generals published a position paper that was specifically introduced into the debate in the form of a catalogue of requirements for the forthcoming updating of NATO’s strategic concept, the idea being that it could serve as a blueprint for the NATO summit on 3/4 April 2009: “ There will be an increase in global competition for scarce resources, and this will certainly be the case for fossil fuel, which will swell the possibility of suppliers abusing their position and their leverage.. […]Dependency on oil and gas is a vulnerability that some governments will seek to exploit – the Gazprom crisis demonstrated how easily demand can be manipulated. The Organization of the Petroleum Exporting Countries (OPEC) is – and is likely to remain – a mechanism for keeping the price of oil artificially high, and recently Russia and the United Arab Emirates have been exploring the idea of setting up a ‘Gas OPEC’. […] For this reason, it might well be worth considering using NATO as an instrument of energy security.”30

Shortly afterwards, in June 2008, Richard Lugar, who for a time was under discussion as Barack Obama’s Secretary of State for Defense, repeated his threats against Russia at a hearing of the Senate and vigorously advocated the building of the Nabucco pipeline.31 At the same hearing the new U.S. Vice-President Joseph Biden expressly praised Lugar’s work on energy policy and emphasised the importance of the conflicts in the Caspian region: “The stakes involve hundreds of billions of dollars in oil and infrastructure, the resurgence of Russia, and the energy security of Europe.. […] Russians love chess. Our strategic response on the chess board of Central Asia must be to establish a presence on parts of the board they do not yet control. That means laying down new pipelines that add alternatives […] to the monopoly Russia has enjoyed.”32

Biden is therefore likely to have welcomed one of the last major security policy initiatives launched by the Bush administration which aimed at drawing Georgia further into the Western orbit by means of a joint declaration on partnership: “The United States and Georgia officially became “strategic partners” under a charter signed by the two governments on January 9 [2009]. […] Few details have been publicized about the charter, which was signed four months after Georgia’s disastrous war with Russia. It has been widely reported, however, that the Georgian pact resembles a strategic partnership charter signed by the United States and Ukraine in December.”33 Like the United States-Ukraine Charter on Strategic Partnership the agreement with Georgia is likely to comprise intensified military cooperation and measures to expedite Ukraine’s membership of NATO. On 15 September 2008 NATO resolved to set up a commission to deepen relations with Georgia. This is intended “to coordinate Alliance efforts to assist Georgia in recovering from the recent conflict”.34

Cold War as a self-fulfilling prophecy

The aim of the policy pursued by the U.S.A. in Ukraine and Georgia is to wage a new Cold War against Russia. Russia is to be challenged by a policy of pinpricks involving “colourful revolutions”, energy blockades, NATO expansion and the stationing of missiles in Poland and the Czech Republic. By disrupting economic relations with Western Europe Washington aims to contain Russia’s global political influence and thwart its advance as a new industrial power. Should this scenario turn out to be a success, it would simultaneously ensure that the NATO allies in Western Europe are tied into a joint strategy of escalation and have to become even more heavily involved in projects designed to secure energy supplies.
Since this strategy has thus far proved successful and it cannot, unfortunately, be assumed that there will be a move away from a policy of U.S. confrontation under President Obama, there is a renewed threat of bloc confrontation. At the height of the Georgian war Russian President Dmitri Medvedev sent out a clear message to the West: “We are not afraid of anything, not even the prospect of a Cold War.”35 The anti-war movement will have to adjust to the realities of the New Cold War. The strategy of imperialism pursued by NATO and the EU must be opposed here and now in a calm and collected fashion.

Endnotes

1 Brzezinski, Zbigniew: The Grand Chessboard: American Primacy and Its Geostrategic Imperatives, New York 1997, p. 24 (Seitenangabe in der englischen Fassung unsicher)
2 ibid., p.27 (s.o.)
3 On Western support for the “colourful revolutions” cf. Chauvier, Jean-Marc: Westlich werden und östlich bleiben, Le Monde diplomatique, 14 January 2005
4 Carpenter, Ted: Worse than Bush? National Interest Online, 11 July 2008
5 Zeihan, Peter: Moskau wird Kiew nie dem Westen überlassen [Moscow will never leave Kiev to the West], Handelsblatt, 20 January 2009
6 United States, Ukraine Sign Security Charter, America.gov, 19 December 2008
7 United States-Ukraine Charter on Strategic Partnership, 22 December 2008, URL: http://tinyurl.com/agqc4k
8 Befeuern die USA den Gasstreit? [Is the U.S. fuelling the gas dispute?], heute.de, 13 January 2009
9 Isic, Mirela: Ein „Vielleicht” für die Ukraine und Georgien [A “maybe” for Ukraine and Georgia], Center for Applied Policy Research, CAP News, 10 April 2008
10 Auswärtiges Amt [German Foreign Office]: Ukraine, Stand: Oktober 2008 [Ukraine, status as of October 2008], URL: http://tinyurl.com/b3gvbg
11 Nabucco: ‘Pie in the sky’ after Georgia crisis?, EurActiv, 25 August 2008
12 ibid.
13 Friedmann, Matti: Sie waren nicht bereit für den Krieg mit Russland [They weren’t prepared for war with Russia], AP, 19 August 2008
14 Schröder gibt Saakaschwili die Schuld [Schröder puts the blame on Saakashvili], Der Spiegel 16 August 2008
15 Grey, Barry: Bush escalates confrontation with Russia over Georgia, World Socialist Web Site, 13 August 2008
16 Der Spiegel 16 August 2008
17 Georgien stockt Armee mit Blick auf NATO-Beitritt deutlich auf [Georgia boosts its army with a view to NATO membership], russland.ru, 16 July 2008
18 Nuclear Nightmares: The Return of M.A.D., Huffington Post, 19 August 2008
19 Chin, Larry: South Ossetia: superpower oil war, Online Journal, 13 August 2008
20 This and many other critical remarks made by Putin were cut out of the ARD broadcast. A full transcript of the interview can be found at http://www.spiegelfechter.com/wordpress/392/das-interview
21 EurActiv, 25 August 2008
22 Rosenbaum, Kaspar: Südossetien: Der Westen in der Propagandaschlacht [South Ossetia: The West in a propaganda battle], ef-online, 11 August 2008
23 EurActiv, 25 August 2008
24 Energie-Agentur sagt wachsende EU-Abhängigkeit von Importen voraus [Energy agency predicts growing EU dependence on imports], Yahoo News Finanzen, 4 September 2008
25 Stratfor: Russland hat Stärke gezeigt und wird nur auf Stärke hören [Russia has shown its strength and will only respond to strength], RIA Novosti, 11 August 2008
26 “Russlands Vorgehen ähnelt dem von Hitler” [Russia’s actions resemble those of Hitler], Die Welt, 11 August 2008
27 Extraordinary European Council, Brussels, 1 September 2008, 12594/08
28 Pflüger, Tobias: EU eskaliert den Konflikt mit Russland weiter [EU escalates the conflict with Russia], IMI-Standpunkt 2008/052
29 On Germany’s role cf. Hantke, Martin: The Georgian War and Imperial Geopolitics, in: AUSDRUCK (October 2008).
30 Naumann, Klaus et al.: Towards a Grand Strategy for an Uncertain World: Renewing Transatlantic Partnership, URL: http://tinyurl. com/5buj19, p. 47 et seq.
31 U.S. Senate Committee on Foreign Relations, Senator Richard G. Lugar Opening Statement for Hearing on Oil, Oligarchs and Opportunity: Energy from Central Asia to Europe, 12 June 2008, URL: http://tinyurl.com/df7tg8
32 BIDEN: We Need to Confront Russia’s Oil Dominance with Aggressive, High Level Diplomacy, 12 June 2008, URL: http://tinyurl.com/crjhol
33 Corso, Molly: Georgia: Washington and Tbilisi sign Strategic Pact sure to irk the Kremlin, Eurasia Insight, 9 January 2009
34 Framework document on the establishment of the NATO-Georgia Commission, Tbilisi, 15 September 2008
35 Dimitri Medvedev raises spectre of new Cold War, The Times Online, 26 August 2008

Western Elites Scramble To Shore-Up EU House of Cards

German retreat gives a chance for Greeks to prepare for Grexit

failed revolution

by system failure
The details of the new agreement between Greece and the lenders are rather of little importance. It seems that the four-month period will function mostly as a truce period rather than a period of substantial progress for the two sides to build a bridge between them.
The generalities in the new agreement are very convenient mostly for the Greek side because they will give the flexibility to the Greek government to take some measures during this period against austerity, in order to fight the humanitarian disaster in Greece, as promised.
However, the financial lobbyists, represented by the Troika, insist in the final sadistic fiscal targets, exactly because they know that a devastated economy is impossible to meet them. They will use this four-month period only as an excuse to say later that they treated Greece with enough clemency against the other eurozone members and they will play this card to turn all the eurozone countries against Greece, in order to isolate fully the Greek government.
On the other hand, Tsipras took what he wanted in order to prepare better for a Grexit. The Greek Leftists in power know very well who are dealing with, so they will use this time to prepare for the next battle of this big war. The four-month period is currently a tactical win for the Greeks as it is close to a recent proposal which was not accepted initially by the eurogroup: http://failedevolution.blogspot.gr/2015/02/breaking-four-month-moratorium-proposal.html
Furthermore, the Greek side will exploit this period to build stronger alliance with the Sino-Russian bloc. Tsipras will certainly exploit his visit to Moscow in May (http://failedevolution.blogspot.gr/2015/02/confirmed-putin-calls-tsipras.html), while he will search all the possibilities for a financial aid from BRICS which are building fast an autonomous financial system to decouple their economies from the neoliberal monetary monopoly. In the middle of the negotiations, Tsipras already took the chance to send another message to the Western allies with the help of the Chinese fleet.(http://en.enikos.gr/politics/24368,Tsipras_welcomes_Chinese_fleet_in_Piraeu.html)
This will bring further pressure to the American factor as the nightmare may become true. Losing part of Europe and especially a geopolitically important country like Greece would be absolute disaster for the Western dominance, which is widely disputed already.
If Greece play this card smartly, the Americans will be forced to impose further pressure especially to the Germans to retreat further towards the Greek demands at the end of the four-month period. The relations between the two countries are not in the best shape already. (http://failedevolution.blogspot.gr/2014/07/who-is-considered-ostensible-ally-by-us.html)
However, this will give further extension to the hopes of the European people as the Spanish elections and Podemos win will come even closer. After that, everything is possible. It is the first time that the Western elites are in such a difficult position after many decades of complete dominance. Grexit or not, it seems that they are losing control. What will they do then? Actions as usual in order of magnitude: propaganda – soft assassinations – economic hitmen – hard assassinations – color revolutions – military coups.
That’s why it is important the rapid rise of the Leftist powers in other European countries. It would be extremely difficult to apply all these in many European countries simultaneously.

IMF Puts the Screws To Ukraine for Latest Bailout–280% Increase In Gas Prices Mandated

[Let the Food Riots in Ukraine Begin!  How will Obama and Bitch Nuland manage to blame Putin for the coming anti-austerity protests?]

IMF aid package pushes Ukraine gas prices up 280%

Russia-Today
Reuters / Regis Duvignau

Reuters / Regis Duvignau

Ukraine has agreed to increase the cost of gas to consumer by 280 percent, and 66 percent for heating, as part of the IMF terms for getting extra financial aid, says Valery Gontareva the head of the National Bank of Ukraine.

“From now on, in accordance with our joint program with the IMF, the tariffs will see rather a sharp increase of 280 percent for gas and about 66 percent for heat,” said Gontareva Wednesday during the 11th Dragon Capital investment conference in Kiev. She added that as a result inflation will be 25-26 percent by the end of 2015.

The tariff rises are part of the amendments to the 2015 budget the government has had to introduce in order to receive an $8.5 billion loan from the IMF by the end of the year.

The changes will also see Ukraine’s budget deficit growing to 4.1 percent of GDP and forecasts a 5.5 percent decline in the Ukrainian economy.

Prime Minister Arseny Yatsenyuk had warned of future price rises for gas and heating, and stressed the IMF saved Ukraine from default, and now it’s time to make moves which should eventually result in Ukraine’s complete independence from Russian gas.

The tariff increase was among the subjects Ukraine and the IMF touched upon during negotiations in January. Deputy Chairman of the Ukraine parliament’s budget committee Viktor Krivenko said the IMF had requested a sevenfold increase in prices.

The head of IMF Christine Lagarde said on February 12 that the preliminary agreement reached between Kiev and Western creditors envisages increasing the aid package to $40 billion over the next four years.

The program will help Ukraine receive an additional $25 billion in financial aid, of which $17.5 billion will be provided to stabilize the financial situation in the country.

The latest IMF program will replace the $17 billion package agreed in April 2014. Ukraine has already received $4.5 billion under that agreement, thus the total IMF loans to Ukraine since the beginning of the crisis amount to $22 billion.

Thousands Take to the Streets of Europe Ahead of Greece, EU Meeting

B94t9g1IUAEKUpNThousands Take to the Streets Ahead of Greece, EU Meeting

telesur

A day before a euro zone finance ministers’ meeting in Brussels, thousands hit the streets of Europe to show support for the Greek people and their newly-elected left-wing government which is looking to undo years of imposed austerity programs.

Demonstrations in cities across the UK, France and Spain stood in solidarity with massive crowds in Greece that also went out to express support for the Syriza government led by new prime minister, Alexis Tsipras.

Meanwhile, Syriza officials told media that they remained committed to making good on their promises to Greek voters and improve their country.

“I expect difficult negotiations; nevertheless I am full of confidence,” Tsipras told Germany’s Stern magazine. “I promise you: Greece will then, in six months’ time, be a completely different country.”

“The Greek government is determined to stick to its commitment towards the public … and not continue a program that has the characteristics of the previous bailout agreement,” Greek government spokesman Gabriel Sakellaridis said to Greece’s Skai television.

People walk in front of the parliament during an anti-austerity and pro-government demonstration in Athens February 15, 2015.
People walk in front of the parliament during an anti-austerity and pro-government demonstration in Athens February 15, 2015. Photo:Reuters
People gather in front of the parliament during an anti-austerity and pro-government demonstration in Athens February 15, 2015.
People gather in front of the parliament during an anti-austerity and pro-government demonstration in Athens February 15, 2015. Photo:Reuters
Protesters wave Greek, Portuguese and Spanish flags in front of the parliament during an anti-austerity and pro-government demonstration in Athens February 15, 2015.
Protesters wave Greek, Portuguese and Spanish flags in front of the parliament during an anti-austerity and pro-government demonstration in Athens February 15, 2015. Photo:Reuters
Solidarity Demonstration at Trafalgar Square, UK.
Solidarity Demonstration at Trafalgar Square, UK. Photo:Louise Regan/ Facebook
Solidarity Demonstration in Nottingham, UK.
Solidarity Demonstration in Nottingham, UK. Photo:Ra H/ Facebook
Solidarity Demonstration at Trafalgar Square, UK.
Solidarity Demonstration at Trafalgar Square, UK. Photo:Ra Ha/ Facebook
Demonstrations in Paris
Demonstrations in Paris Photo:Florian Martiny/ Twitter
At Royal Palace, Dam Square, Amsterdam.
At Royal Palace, Dam Square, Amsterdam. Photo:Greek Rebel News/ Twitter