Asia

Russia Raises the Stakes Part 1 (of a 2 Part Series)

Samarkand, Referendums, Mobilization

With the conclusion of the SCO summit in Samarkand, Washington is going ballistic. Several plans are being activated to cause disruptions across Eurasia. Developments are increasing at an increasing rate.  We will do a quick but important tour across several vectors. Bear with me. Let us start with Samarkand.

Samarkand

Following the highly successful summit of the Shanghai Cooperation Organization (SCO) on September 16th in Samarkand, Uzbekistan, , the nation’s representing the majority of the world’s nations and population are turning to the nexus around Russia, China and India, that are offering a world vision based on peace through development, rather than famine and war. They are able to create such a new multi-polar world, freeing themselves from the collapsing dollar-based financial system, both because the center of real development and progress has shifted to the Eurasian-centered world, driven by the developments of the BRI Initiative for the entire world, and by the creation of an entirely new financial system, open to all nations, being led by Russia, China and others. Its major architect, Russian economist Sergei Glazyev, said: “Today (September 8th) we rely on Lyndon LaRouche’s work- we call it an integrated world economic model, in which finance capital is subordinated to the tasks of developing the economy, and in which the principles of Physical Economy will come to fruition. As we can see that countries taking this path are enjoying success- – -If the leaders of the world’s nations had listened to the voice of Lyndon LaRouche, then perhaps we might have managed to avoid the social upheavals we confront today as a result of the collapse of the world financial and economic system…. [China and India] have used his thoughts and ideas, for creating their economic miracles”

Sure, as former Mexican President José López Portillo put it in 1998, “listen to the wise words of Lyndon LaRouche”—but digging in and mastering his method is key, now, for finishing off the existential danger of the “permanent war” geopolitical gang.

And the following is from parts of Putin’s speech at the SCO:   “The most important thing always and everywhere is economic development. And the SCO, cooperation with the SCO countries, creates conditions for the development of the Russian economy, and thus for the social sphere and for resolving the tasks related to improving the living standards of our citizens. “The Shanghai Cooperation Organization includes countries whose population, as has been said many times, comprises almost or even slightly more than half of humanity. It is 25% of world GDP. And, most importantly, the national economies in the region, those of the SCO member states, are developing much faster than others in the world…. India’s GDP grew by 7%, China’s by more than 8%.” “There are more than 200 countries around the world, the vast majority of which do not follow the U.S. and many are fed up with the selfish and self-serving attitude of the superpower. More countries have asked to join the SCO as they want to get a sense of stability, security and development, that is, a chance to get out of trouble and achieve revitalization.”

Putin at his SCO press conference also blamed the West’s own policy folly for the destruction of its economy. On previous occasions he has focused his attack on the policy of financial speculation as responsible for the collapse of the physical economy; this time he took aim at the crazy “green” deindustrialization policies. “The energy crisis in Europe did not begin with the start of Russia’s special military operation in Ukraine, in Donbass; it actually started much earlier, a year before or even earlier. As strange as it may seem, it started with the green agenda…. To pursue momentary political considerations, they chose to completely close down the hydrocarbon energy programs in their countries. Banks stopped extending loans, local authorities have stopped allocating land plots for future development, and implementation of plans for energy infrastructure construction was stopped as well, with huge cuts in investment in conventional energy….” “Specialists and experts are perfectly aware of this, and all these populist statements claiming that someone is to blame for this elsewhere are made only to protect themselves from their citizens’ indignation.”

Putin added that the green energy policy is totally “unprepared to meet to the demand for huge energy resources to support economic and industrial growth. The economy is growing while the energy sector is shrinking. This is the first drastic mistake.”

Secondly, the West itself then shut down the flow of natural gas from Russia to Europe, by the deliberate decision to impose sanctions, to stop Nord Stream 2, refusing to meet contractual obligations to maintain compressors for Nord Stream 1, and even simply shutting down the flow of gas through Poland and Ukraine. Putin argued: “Are we to blame for this? Let them think hard about who is to blame and let none of them blame us for their own mistakes.”

Referendum & Mobilization

In the blink of an eye, the citizens of the Lugansk and Donetsk People’s Republics, along with two southern regions of Ukraine—Kherson and Zaporozhye—set up referenda for Sept. 23-27, voting on whether to formally join the Russian Federation.  By Friday the 30th, it was a done deal. This is a very good deal for Russia as it gains an area of around 100,000sq kms, but very industrialized and agriculturally rich. The best part of the annexation was gaining around 6 m new citizens, helping to boost Russia’s population by around 4 % (from 146 m to 152 million). At that point, Russia’s “special military operation” is over, as is the West’s “proxy” war. Those new areas of Russia are not to be toyed with.

In a nationwide address on Wednesday morning (21st September) Russian President Vladimir Putin announced a partial military mobilization, while vowing to use all means necessary to defend Russia and pledged to annex the territories already occupied by Russia, raising the stakes in the seven-month-old conflict. Thus, any outside military force still in the territories of these newly annexed regions will be considered as an invading and/or terrorist force. With a call-up of 300,000 additional troops, Russia will have enough manpower to deploy in these new provinces. The fact that these regions are quite rich in natural resources as well as are home to many heavy industries make them extremely lucrative.

What are the New Regions?

The total area of Donbass, Kherson and Zaporozhye is almost 109,000 square kilometers or over 15% of Ukraine’s total area. More than eight million people live in the territories that have more than 5.6 million hectares of arable land. Moscow has yet to determine the future borders of Kherson and Zaporozhye while parts of them are still controlled by Ukrainian troops.

What are the Drivers of the Donbass economy?

Donbass with its coal-based economy was Ukraine’s industrial heartland. The Donetsk People’s Republic (DPR) accounted for 20% of the country’s industrial production as far as 2014. The mineral-rich region has the fourth-largest coal field in Europe, with its extractable reserves estimated at over 10 billion tons. As of February, 115 coal mines were operating in Donbass, producing around 70 million tons of raw material per year. Eight power plants are also located on the territory of the Donetsk region.

The Lugansk People’s Republic (LPR) is an important transport hub and is known for its metallurgy, machinery and agricultural industries. It also has chemical and pharmaceutical plants and several coal mines. A number of important transit highways pass through the republic. Authorities in LPR say its agricultural potential is great, with a focus on the cultivation of grain.

Why is Zaporozhye Important?

Zaporozhye Region is the center of energy supply, with its three powerful energy producers – the Zaporozhye nuclear power plant, the largest nuclear facility in Europe, the Dnepr Hydroelectric Station and the Botievo wind farm. In 2019–2020, Zaporozhye produced electricity that supplied about 25–27% of the entire energy sector in Ukraine. The region has a number of large industrial and mechanical engineering facilities, including the Zaporozhye Automobile Building Plant (ZAZ) with an output of 150,000 vehicles a year. The Dnepr River, the Kakhovka Reservoir and the Sea of Azov play a significant role in Zaporozhye’s economy which also has great potential for industrial fish farming.

What’s the Significance of Kherson?

Kherson Region specializes in shipbuilding and is known for its resorts and agriculture. It has the largest territory of arable land at almost 20,000 square kilometers. The region produces cereals, sunflowers and vegetables. The fertile land allows two or sometimes even three harvests a season. Other traditional industries there are cattle breeding and winemaking. There are plans to develop a resort and tourist cluster on the territory, which has access to both the Azov and Black Sea.

What Challenges & Benefits Does Russia face?

Russia obtained land with incredible agricultural and industrial potential, but with highly degraded infrastructure. The government’s primary concern is to integrate those territories and help them overcome the economic development gap, and to recover from the destruction inflicted by the conflict. Initially Moscow will finance the budgets of the four regions. In the future as integration deepens and the economy is restarted, the volume of transfers from the federal budget will decrease.  The territories have an extremely advantageous geographical location. They offer vast opportunities due to the presence of ports and maritime routes with the south of Russia. Access to the key port of Mariupol in the Azov Sea means a potential increase of coal and other supplies to Africa and South Asian countries. The regions can contribute to both ensuring the nation’s food sovereignty and to increased export supplies to ‘friendly’ states. Experts estimate the potential contribution to the Russian economy could be worth trillions of rubles or even more. Denis Pushilin, head of the DPR, summed it all up: “We’re going home”. The baby bears are coming to Mama.

Map showing the annexed Ukrainian oblasts per Russian claims in orange, with a red line marking the area of actual control by Russia on the day of the annexation.

Putin has been quite direct and open—Russia’s “special military operation” has been a small part of what they are capable of. For six months, they have avoided the destruction of civilian infrastructure, where it would have saved the lives of Russian soldiers to have done otherwise. Russia had no beef with most of Ukraine’s population, and no interest in making their life worse than it already was. Putin’s issue was with NATO’s armaments at Russia’s door, and with a neo-Nazi element holding Ukraine hostage, never allowing the agreed-upon Minsk Accords over the breakaway republics to be followed.

Putin explained that the apparent slow progress of the SMO by the need to methodically destroy the hardened defences the Ukrainian Nazi battalions built up on the front line over eight years. “A head-on attack against them would have led to heavy losses,” Putin said, “which is why our units, as well as the forces of the Donbass republics, are acting competently and systematically, using military equipment and saving lives, moving step by step to liberate Donbass.” Putin also accused the west of using “nuclear blackmail” against Russia noting that “if its territorial integrity is threatened Russia will definitely use all the means at its disposal.” to defend Russian territory. “This is not a bluff.” The fact is, after Putin’s speech of the phrase, “disastrous end game” is barely adequate to describe the scenario ahead. That’s because it signaled that the relative restraint of Russia’s “Special Military Operation” (SMO) is now over, and what lies ahead is full scale political and military warfare that can only end in calamity for Ukraine, NATO and indeed the world.

Facts on the Ground

Russian Defence Minister Sergey Shoigu gave a televised interview the same morning. He gave extremely specific figures for both Russian and Ukrainian military casualties. “Our losses to date are 5,937 dead,” he said, but added that 90 per cent of the wounded had recovered and returned to duty.

According to Shoigu, Ukraine has lost 61,207 killed and 49,368 wounded (a total of 110,575 casualties) from an initial military strength of 201-202 thousand. The caveat to that is that Ukraine has conscripted hundreds of thousands of men into territorial defence units since the start of the conflict. That’s greater than a ten-to-one ratio of Ukrainian to Russian casualties. Shoigu also said that over the previous three weeks — since the launch of Kiev’s counter-offensives in Kherson and Kharkov — the Ukrainians had lost more than 7,000 men and 970 pieces of heavy equipment, including 208 tanks, 245 infantry fighting vehicles (IFVs), 186 other armoured vehicles, 15 aircraft and four helicopters. That amounts to about 60 per cent of the roughly 350 tanks, and three-quarters of the 328 IFVs, supplied by Western countries since February 24.

Kiev has already begun more counter-offensives towards Lisichansk in the LPR, Donetsk city, from Ugledar to the south to Mariupol and towards Berdyansk or Melitopol in Zaporozhye oblast. Russian aircraft, missiles and artillery are already hitting the groups of forces concentrated for that. These attacks have fizzelled out, adding even more losses in manpower and equipment for Ukraine.

“Russia already controls the territory that produces 95 percent of Ukrainian GDP. It has no need to press further west.” Donbass will be fully liberated and the next step is Odessa. Moscow is “in no hurry. The Russians are nothing if not methodical and deliberate.

Once Moscow takes the gloves off and savages Ukraine’s electric power grid and railway system it will be all over except the shouting. The massive flow of western armaments, which has kept Kiev in the game to date, will be drastically curtailed; and the civilian population in the Kiev-controlled areas will be left high and dry, preparing to shiver in the dark as the severe Ukrainian winter approaches.

Most reports suggest that the total manpower losses of the Ukranian military in September’s counter-offensives across multiple fronts is about 20,000 KIA, with many more wounded and captured. Losses in equipment have also been massive. What is making things worse for Ukraine is that they are running out of both manpower and equipment and ammo. And so are their western backers; the EU is nearly demilitarized, while the Pentagon is desperately scrambling to increase production of ammo and equipment. But, it’s a question of too little and too late. All the while, Russia is not running out of ammo or equipment. With the extra 300,000 troops to add to the 200,000 troops stationed on the Russian-Ukrainian border (this includes approx. 50,000 Russia troops within the Donbass/Kherson/Crimean regions.

Moscow’s rerouted strategy takes Sun Tzu – mask, feint, fool the enemy – to another level, actually dropping the mask, plus the velvet gloves. Now it’s all very clear: this is turbo-charged Sun Tzu (“May your plans be dark and impenetrable like the night, and when you move, strike like lightning.”)

There will be plenty of strikes like lightning ahead in the Ukrainian battlefield. This is the culmination of a process that started in Samarkand, during the SCO summit last week. According to diplomatic sources, Putin and Xi Jinping had a very serious conversation. Xi asked tough questions – as in:” you must finish this off” – and Putin arguably explained how things would reach the next level. The SCO in Samarkand and the UN General Assembly have amply demonstrated how virtually the whole Global South outside of NATOstan does not demonize Russia; understand Russia’s position, and even profits from it.

With the partial mobilization, Russia may count on a new batch of fresh troops ready for war by the end of the year. The much-touted Ukrainian numerical advantage will soon be nullified. Russia is fighting the collective West; Western command centers in Kiev are running the show; and the entire array of NATO military and “civilian” satellites is mobilized against Russia. By now it’s already clear. If these NATO command centers tell Kiev to strike Russian territory after the referendums, we will have the Putin-promised decimation of “centers of decision”. And the same applies to the satellites.

This may be what the Kremlin wanted to do from the beginning. Now they can finally implement it, because of popular support in the internal front.  In the end, Putin gets rid of his mask – after all, this is Sun Tzu on steroids – and reveals his true face.

On the international diplomatic front, a host of direct, person-to-person dialogues were held last this week, with all the side meetings around the UN General Assembly. Russia’s Lavrov, India’s Jaishankar and China’s Wang Yi—coming off the Sept. 15-16 Shanghai Cooperation Organization summit in Samarkand—have a full dance card and are, as it were, loaded for bear. Fully aware of the ugliness of the geopolitical rantings they will face, they are fully armed to forge ahead. It turns out that the personal ability to reason, face-to-face, one-on-one with other leaders, on actual solutions mutually benefit countries and regions, and make such individuals a clear and present danger to the two families. More importantly, NATO desperately needs to save face — now that it has been exposed by Russia as a paper tiger.

The China-Russia Alliance Solidifies

Patrushev was on the road to China immediately afterwards – meeting with his Yoda counterpart Yang Jiechi, head of the Foreign Affairs Commission, and the secretary of the Central Political and Legal Committee, Guo Shengkun.

 Following-up on Samarkand, Patrushev outlined how Moscow will help Beijing militarily when the Empire tries anything funny in the next battlefield: Asia-Pacific. That should happen under the framework of the SCO. Crucially, the Patrushev meetings were requested by the Chinese.

 So the Russia-China strategic partnership is about to achieve full-fledged cooperation before the going gets tough in the South China Sea.

Why Ukraine

The only way to answer this question is to, once again, review some of the geopolitical points presented by Brzezinski in his ground-breaking book: “The Grand Chessboard (1997);-

1. “Geopolitical pivots are the states whose importance is derived not from their power and motivation but rather from their sensitive location and from the consequences of their potentially vulnerable condition for the behavior of geostrategic players.”

2.  “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.”

3. “However, if Moscow regains control over Ukraine, with its 52 million people and major resources as well as its access to the Black Sea, Russia automatically again regains the wherewithal to become a powerful imperial state, spanning Europe and Asia.”

4. „The key point to bear in mind is that Russia cannot be in Europe without Ukraine also being in Europe, whereas Ukraine can be in Europe without Russia being in Europe.“

These 4 points make it crystal clear the reason why the Rockefeller Empire had to start with Ukraine, if it had to “de-construct” Russia.  The only way for America to maintain control over Eurasia is to continue its policy of destabilization, color revolutions and financial wars- all to “divide-and-rule” Eurasia. The SCO aims to put a stop to that.

The map below shows a 3-pronged destabilization map of Eurasia. In the WEST, this is happening in Ukraine. In the SOUTH  all four  “axis of evil” countries (US, UK, EU+London, and Israel)are working overtime to create a war between the Arabs and Iran, under the guise of a Sunni-Shia religious war. In the east, we have the obvious players (US/Japan/Aus) to cause problems for China.

Were the US successful in this, then, the Rockefeller family reasoning goes “We will do a repeat of World War 2 wherein Eurasia was destroyed and we took it over”. They are day-dreaming.

The High Dollar & Its Consequences

The dollar functioned as a world reserve currency for nearly 50 years. The Rockefeller Empire took advantage of this, and became greedy, and ruthless in its imposition on global economics and finance. This advantage was abused, till now. Understand that the dollar is a fiat currency, with ZERO GOLD BACKING. Its advantages were several- the largest economy backed by the most powerful military to enforce its petro-dollar role. At the same time, the US dollar market was considered a “safe haven”.

Fast forward to the present day. Its economy is not doing well due to many factors. Its military is broken. Its “safe-haven” status has vanished with the theft of assets and wealth of other nations and individuals. In short, the dollar became toxic. The “straw that broke the camel’s back” was the decision by Putin to accept payment in a gold-backed ruble for Russia’s energy products.

Money began fleeing from the dollar. This was no good for the Rockefeller Empire, as the ONLY thing left holding the dollar up was CONFIDENCE. With a moronic political leadership, a society descending into lawlessness, decaying infrastructure, and a government push to enforce the satanic policies of Transgender, LBGT, etc. many investors around the world came to the conclusion to- – – well – – “desert ship”. They began pulling their funds out of the stock market, and then exiting the USD.

To stop this outflow of dollars, and as well as to maintain confidence, the Fed was instructed to raise interest rates. This did the trick. International investors in Europe, Japan and elsewhere were receiving less than a 1 % return on their cash deposits and investments. Now, the Fed offers them 3.25%!! It’s a no-brainer. Obviously money exited other markets and ploughed into the dollar. The result has been a massive fall in other currencies- globally.

As if a new battle tank had been unleashed on the NATO side, —the Federal Reserve’s Federal Open Market Committee (FOMC)—whose destructive power is shoving NATO sanctions themselves to one side, the suddenly spiking U.S. dollar has started a global currency crisis and threatens the world’s bond markets with a meltdown. The dollar continued its rocket rise on Monday morning, Sept. 26, with U.S. Treasury interest rates now rising 10-20 basis points per day and taking corporate bond rates up with them even among the few remaining AAA-rated conglomerates. The euro is down to 96 cents; yen at 144/dollar where it has not been for decades; sterling has collapsed from $1.14 last Thursday afternoon (Sept. 22) to $1.06 Monday afternoon; China’s yuan has hit 7/dollar and the People’s Bank of China moved to restrict currency derivatives trading in order to keep it there. The Bank of England held an emergency meeting but, unlike the PBOC, only talked about doing something and did not; so it will probably have to hold another, even greater, emergency meeting very soon.

Bank of America market analysts published a note Sept. 23, widely reported in financial media over the weekend, which warns that the U.K. bond market crisis which exploded Sept. 22 could signal that the Federal Reserve’s repeated jumps in dollar interest rates could trigger a “historic global bond market crash” spreading from the British to other nations’ debt. Such a crash would threaten general liquidation, BOA said, “of the world’s most crowded trades” of the moment: in U.S. Treasuries, U.S. technology companies, and Wall Street private equity firms. The BOA analysts said that “Bonds are generally regarded as one of the most liquid asset classes available to investors. If liquidity dries up in that market, its bad news for just about every other form of investment. A rising interest rate environment is a disaster for the Global South, and many will default on their foreign debt.

Within the US, the UK, and the EU, a low-interest rate environment prevailed since 2009. Many took out loans at these rates. None would be able to survive with interest rates reaching 10% (as compared to 2%).Governments are broke as it is; and are extremely heavy in debt. Expect their interest payments to jump to levels not seen before. Along with this comes a huge decline in income, as taxes are not being paid by businesses and individuals, due to the fact the businesses have closed down and people are out of jobs. Government bonds in the Western economies are losing value-prices are going down, while interest rates are rising-, and this holds extreme danger for the global financial system. Government bonds are the last line of defense. Add to this is the deficit in infrastructure within the US, along with a very reduced industrial base, means that there is very little hope to turn things around amidst the ongoing collapse of the hyper-inflated western economic and financial systems.

Oh -so-clever Western geopoliticians have sanctioned themselves into a corner, where the realities of heating and eating are not so easy to dance around. The United Kingdom just began to experience a series of critical strikes at its ports and railroads, scheduled over the next ten days.

The euro has already collapsed against the dollar. Now it is the turn of the pound sterling. The pound sterling has lost 20% of its value against the dollar since Miss Truss came to power. The UK, stabbed in the back by the US for its anti-EU policy on Northern Ireland, has an economy which is not emerging from covid, but submerging after covid. The UK’s infrastructure, utilities, roads, railways, education and healthcare, has in many places reached what used to be called ‘Third World’ levels. The UK currency crisis has come about because of the UK government’s need to borrow huge amounts of money – this was Miss Truss’s ‘bold plan’. The UK level of debt is now approaching that of the USA and catching up with that of Italy, whom it used to mock as a ‘basket case’. 

The European Commission’s sanctions on Russian gas supplies have increased gas prices in Europe and the UK by a factor of roughly ten times, and consequently increased power prices by factor of around five times. Spiking energy prices undercut popular support for the war while at the same time threatening almost all parts of greater Europe’s industrial and commercial sector, rendering large parts of commerce and industry unprofitable overnight (and catastrophically loss-making in the case of low-margin energy intensive primary industries). Brussels and London have been forced to respond with a combination of massive subsidies, price controls and windfall profit taxes. Both the EU and the UK are looking at sharp GDP contractions as a result of the energy price spike alongside large adverse swings in international payments balances. The value of Sterling has crashed to its lowest level against the dollar since American independence. The Euro has also dropped by some 20% against the dollar.

Europe will weather the price spike better than the UK, which is facing another economic disaster generated by the inflation-linked coupons on some £500 billion of its government debt. With inflation running at 10-12% per year, UK debt interest will leap this year from approximately £48 billion in 2019 to a likely £110 billion in 2022. UK government debt interest will be yet higher in 2023, when, if the war and EU sanctions on Russian gas continue, the United Kingdom will need to borrow a net £200 billion (plus half as much again to roll over existing maturing debts), with a weak currency, high inflation and a shrinking economy. This toxic combination will further weaken the pound, import more inflation through rising import prices, further increase the cost of index-linked government debt, and drive the government’s budget deficit to around 10% of GDP. Unable to raise taxes (because she has promised not to) and unable to cut government spending (because an election looms in 2024) Ms Truss will be at risk of sinking under a tide of debt.

Global currency and bond markets are being hit by a growing storm driven by the rise of the US dollar fuelled by interest rate hikes by the US Federal Reserve, which could start to shake the financial system.

The turmoil reached a new level of intensity during the last week of September, sparked by the reaction of financial markets to the UK mini-budget which handed out £45 billion in tax cuts to the wealthy while increasing government debt by £72 billion. The reaction of the markets was to send the pound down to its lowest level in history. This led to a rapid sell-off of government bonds, sharply lifting their yields, or interest rates.

Like other central banks, the Bank of England (BoE) is lifting interest rates. The bank is also reducing its holdings of financial assets. But while the BoE is tightening monetary policy, the government’s handouts to the wealthy are to be financed by the creation of still more debt. The situation is increasingly being described as a “crisis of confidence.” Moreover, there are fears of mounting global turbulence. This is under conditions where the crisis of the British pound is the sharpest expression of the slide in all currency values against the dollar due to ongoing hikes in US interest rates. The Japanese yen is down to its lowest level in 25 years and other currencies are falling rapidly. Those fears are focused on the bond market where prices are falling and yields are rising at an alarming rate.  This isn’t at core a currency crisis, but a crisis of confidence in the bond market, which is much more dangerous.  Ever since the global financial crisis of 2008, everyone in the asset markets has known that there is one great risk above all others—that at some point confidence would run out and the bond market would revolt, causing a disorderly rise in yields. Then the edifice would fall.

That day of reckoning was delayed because the central banks could always print more money when they did not have to worry about inflation. Those conditions have now changed. The UK appears to be the first case of a truly disorderly bond selloff, where the moves are so swift that they affect the functioning of the financial system The whole world had to watch what was happening in Britain because it was a test case for the confidence game that’s likely to be repeated everywhere. And while King Dollar reigns supreme at this point, the US is not exempt from the rising global storm. A “savage” fall in bond prices would leave investors with no choice but to liquidate “the world’s most crowded trades,” namely the US dollar, US tech stocks and private equity. The crisis of the British pound could well be a warning of the demise of the entire system of fiat currencies, based on the US dollar.

There is a possibility of a split emerging between the strategic desires of London and the EU, with Brussels coming acute economic pain for the UK as part of the “punishment regime” for the UK’s departure from the European Union. Moscow may try to use that divided agenda to detach the UK from Ukraine’s life support system. Another overlooked point here is that Europe’s largest bank is Germany’s Deutsche Bank. Unlike other Anglo-Saxon banks, Germany’s largest bank is also an industrial bank, with major shareholdings in many of Germany’s biggest and most strategic companies. The default/bankruptcy of these firms will cripple, if not, bankrupt Deutsche Bank. Were this to happen, it will cause a domino effect on other European banks. This will, in turn, spread to other markets in the Western financial system. As we have read, from previous articles, all these super banks are tied to one another, through derivatives deals and increasing counter-party risks.

Going from this point forward, all bets are off. Each of the EU countries are going to act in their own interests. It’s going to be a circus. Enjoy the show.

Now it’s painfully clear the imperial velvet gloves are off when it comes to the vassals: EU independence, Cooperation with China and Independent trade connectivity with Asia- FORBIDDEN. The only place for the EU is to be economically subjugated to the US:  With a perverse neoliberal twist: “we will own your industrial capacity, and you will have nothing.”

The sabotage of NS and NS2 is inbuilt in the imperial wet dream of breaking up the Eurasian land mass into a thousand pieces to prevent a trans-Eurasia consolidation between Germany (representing the EU), Russia and China: $50 trillion in GDP, based on purchasing power parity (PPP) compared to the US’s $20 trillion. We must go back to Mackinder: control of the Eurasian land mass constitutes control of the world. American elites and their Trojan Horses across Europe will do whatever it takes not to give up their control. But, the debt remains. And with living costs exploding, the Collective West is heading for a “WINTER OF RAGE”.

What is clear is that the Rockefeller family’s primary interest is saving their dollar empire, with a total disregard for the people. This is bound to have repercussions and blowbacks across the political spectrum in the US and Europe. The right is gaining favor and political strength, such as the recent Italian elections have shown. Expect this trend to intensify in the near future. The same holds true within American politics.

The US Sabotages NS1 & NS2

On the evening of the 26th September, both strings of the NordStream pipelines were sabotaged in 4 places. Explosives were used. There is only one beneficiary- the Rockefeller Empire.

This episode of Hybrid Industrial/Commercial War, in the form of a terror attack against energy infrastructure in international waters signals the absolute collapse of international law. The attack on both pipelines consisted of multiple explosive charges detonated in separate branches close to the Danish island of Bornholm, but in international waters.”

Nuclear Showdown

The world is barreling towards a nuclear showdown between the U.S.-NATO and Russia, with far too few voices in the West raised in protest and demanding alternatives. It is as if the world is living in two parallel universes.

That was a sophisticated operation, carried out in stealth in the shallow depth of the Danish straits. That would in principle rule out submarines. As for prospective “invisible” vessels, these could only loiter around with permission from Copenhagen – as the waters around Borholm are crammed with sensors, reflecting fear of incursion by Russian submarines. Swedish seismologists registered two underwater explosions on Monday – to blow up four separate pipeline nodes.. The pipes are now filled with seawater. The pipes on both NS and NS2 can be repaired, of course, but hardly before the arrival of General Winter. The question is whether Gazprom – already focused on several hefty Eurasian customers – would bother, especially considering that Gazprom vessels could be exposed to a possible NATO naval attack in the Baltic. A case can be made that this Euro-oligarchy should one day be tried for treason. As it stands, a strategic irreversibility is already self-evident; the population of several EU nations will pay a tremendous price and suffer serious consequences derived from this attack, short, medium and long term.

 On the one side, Russia’s leading circles are fully convinced that the West’s NATO structure is out to destroy Russia in its entirety, to rip it to pieces and “decolonize” it.  The violent confrontation between Russia and the West poses the ultimate question: Will Russia survive in this struggle or will it finally and irreversibly disappear? A great war is on the doorstep.”

In the “other” universe, NATO and the West are hell-bent on using the Ukraine war to push through their decades-old agenda of “decolonizing” or fully dismembering Russia into powerless statelets—a policy which Zbigniew Brzezinski and other London assets long championed. They have repeatedly stated over the last year, louder and louder by the day, that they are fully prepared to use nuclear weapons to force Russia to back down and capitulate.

We have two high-speed trains—nuclear trains—barreling towards each other, and there will be a train wreck unless this is stopped in the next days. The moment Russia incorporates the 4 provinces into

Russia, then at that point, they will be considered part of Russia—and defended as such by Moscow.

And the West will be powerless to do anything about it, unless the nutcases decide to go nuclear.

Cui bono?

Swedish Prime Minister Magdalena Andersson admitted that was “a matter of sabotage”. Danish Prime Minister Mette Frederiksen admitted “it was not an accident”. Berlin agrees with the Scandinavians.

Now compare it with former Polish Defense Minister (2005-2007) Radek Sikorski, a Russophobe married to rabid US “analyst” Anne Applebaum, who merrily tweeted “Thank you, USA”.

It gets curiouser and curiouser when we know that simultaneously to the sabotage the Baltic Pipe from Norway to Poland was partially opened, a “new gas supply corridor” servicing “the Danish and Polish markets”: actually a minor affair, considering months ago their sponsors were in trouble finding gas, and now it will be even harder, with much higher costs.

NS2 had already been attacked – in the open – all along its construction. Back in February, Polish ships actively tried to prevent the Fortuna pipe-laying vessel from finishing NS2. The pipes were being laid south of – you guessed it – Bornholm. NATO for its part has been very active on the underwater drones department. The Americans have access to long distance Norwegian underwater drones which can be modified with other designs. Alternatively, professional navy clearance divers could have been employed in the sabotage – even as tidal currents around Bornholm are a serious matter.

The Big Picture reveals the collective West in absolute panic, with Atlanticist “elites” willing to resort to anything – outrageous lies, assassinations, terrorism, sabotage, all out financial war, and support to neo-Nazis – to prevent their descent into a geopolitical and geoeconomic abyss. Disabling NS and NS2 represents the definitive closure of any possibility of a German-Russia deal on gas supplies, with the added benefit of relegating Germany to the lowly status of absolute US vassal.

So that brings us to the key question of which Western Intel apparatus designed the sabotage. Prime candidates are of course CIA and MI6 – with Poland set up as the fall guy and Denmark playing a very dodgy part.

Prescient as ever, as early as in April 2021 Russians were asking questions about the military security of Nord Stream.This was far from an isolated attack. On September 22 there was an attempt against Turkish Stream by Kiev saboteurs. The day before, naval drones with English language IDs were found in Crimea, suspected of being part of the plot. Add to it US helicopters overflying the future sabotage nodes weeks ago; a UK “research” vessel loitering in Danish waters since mid-September; and NATO tweeting about the testing of “new unmanned systems at sea” on the same day of the sabotage.

Meanwhile, EU energy giants are bound to lose big time with the sabotage. It gets worse: there are no holds barred anymore on the Pipeline Terror front. Russia will be on red alert not only for Turk Stream but also Power of Siberia. The same goes for the Chinese and their maze of pipelines arriving in Xinjiang.

Whatever the methodology and the actors who were in the loop, this is payback – in advance – for the inevitable collective West defeat in Ukraine. And a crude warning to the Global South that they will do it again. Yet action always breeds reaction: from now on, “funny things” could also happen to US/UK pipelines in international waters.

The EU oligarchy is reaching an advanced process of disintegration at lightning speed. Their window of opportunity to at least attempt a role as a strategically autonomous geopolitical actor is now closed.

And once again, it gets worse: Gazprom is threatening to sue the Ukrainian energy company Naftofgaz for unpaid bills. That would lead to the end of Russian gas transiting Ukraine towards the EU. As if all of that was not serious enough, Germany is contractually obligated to purchase at least 40 billion cubic meters of Russian gas a year until 2030. Just say no? They can’t: Gazprom is legally entitled to get paid even without shipping gas. That’s the spirit of a long-term contract. And it’s already happening: because of sanctions, Berlin does not get all the gas it needs but still needs to pay. The USA has successfully cut off German industry, and much of Europe, from the Russian gas that could have powered it up again, had the EU wanted to be free of dependence on the US. Meanwhile, Italy is about to get a new, anti-Brussels nationalist government, much to the dislike of the unelected EU elite. In short, Europe is going to become totally de-industrialized. A thought that was unthinkable at the beginning of this year.

“There are decades where nothing happens; and there are weeks when decades happen.” This is one of those weeks. The story continues in Part 2,

One thought on “Russia Raises the Stakes Part 1 (of a 2 Part Series)

Leave a Reply

Your email address will not be published. Required fields are marked *

Posts by Month