Tuesday, December 30, 2014

#AirAsiaFlight8501 Debris Found Dec 30, 2014

Debris Found During Search for AirAsia Flight 8501 By Tom Hall - Dec 30, 2014 1:18 AM PT
AirAsia Flight 8501


As the search for AirAsia Flight 8501 continues for a third day, Indonesian authorities have announced they have found debris and bodies from the passenger jet that went missing three days ago with 162 people on board.

The Indonesian Navy found objects suspected to be an emergency door and underwater objects resembling a plane, F.H. Bambang Sulistyo, head of the national search and rescue agency, said in Jakarta. At least six bodies were found and three were retrieved, TVOne reported.

The crash site is in an area around Pangkalan Bun, about 1,000 kilometers (620 miles) southeast of Singapore.

Left: Security personnel cover windows as family members of passengers aboard AirAsia Flight 8501 watch news reports at Juanda International Airport in Surabaya on Dec. 30, 2014.

Ukraine will not make an advance payment of the January gas supply before the end of 2014

The head of the National Bank: Ukraine will not make an advance payment of the January gas supply before the end of 2014

Photo: Reuters
December 30, 2014, 12:55

Ukraine before the end of the year does not make an advance payment of the January supply 1 billion cubic meters of Russian gas, said the head of the National Bank of Ukraine Valeriy Gontareva.

Gontareva added that Ukraine relies on the simultaneous production of three tranches and additional finpomosch from the IMF, reports RIA "Novosti" .

Last week it was reported that Gazprom received from Naftogaz 1.65 billion dollars in debt for gas.

Previously also reported that Ukraine must still about 3 billion cubic meters of gas for the normal passage of winter.Thus Kiev is planning to end of 2014 to buy 1 billion cubic meters of Russian gas.

In October, on the basis of tripartite talks in Brussels, Russia, the EU and Ukraine signed a final agreement on gas supply and transit to March 2015.

According to the agreement legally fixed, the price of gas for Ukraine will be 378 dollars for 1 thousand. Cubic meters by the end of 2014 and $ 385 for 1 thousand. Cubic meters to March 2015.

Monday, December 29, 2014

The world will change forever in the Monday, December 29, 2014

The world will change forever in the Monday, December 29, 2014


December 28, 2014

China and Russia have applied to a US dollar a new crushing blow, according to a publication of editions Zero Hedge.

China launches Monday swap trade a couple of yuan - ruble.

The world has been slow to recognize the new reality in which China is now the de facto sovereign "master" of the IMF described the situation as Zero Hedge two weeks ago in an article "China is ready to help Russia." We have noted that the People's Bank of China proposed the use of a swap line, which was to reduce the role of the US dollar, if China and Russia will need to help each other to overcome the liquidity crisis. (The agreement provides for swap CNY150 billion. In local currency).

In fact, everything happened just this week. Bloomberg reported that "China offers Russia assistance in the form of currency swaps."

But in order to fully protect Russia from disconnection from SWIFT-a world in which the dollar's dominance was needed one extra step. And it was done - it's launch direct trade FX with the participation of Russian and Chinese currencies.

Not surprisingly, that's exactly what was missing was made in overnight trade yuan-ruble pair will start at Monday, December 29, 2014

Posts from Bloomberg:

"China allows future trade swaps between the yuan and more than three currencies in an attempt to reduce currency risks against the backdrop of heightened volatility in the markets of developing countries.

China Foreign Exchange Trade System will start the implementation of such contracts with the Malaysian ringgit, the Russian ruble and the New Zealand dollar since December 29, according to a statement posted on the organization's website. This practice expands swap trade the yuan and 11 other currencies in the interbank foreign exchange market.

New arrangements were announced against the backdrop of China's efforts to promote international use of the renminbi, and the second largest economy in the world promoting it as an alternative to the US dollar in world trade and finance. Malaysia and Russia are the eighth and ninth largest trading partner of China, according to data compiled via Bloomberg.

"It will provide companies with better hedging instruments, and at the same time, make currency trading more efficient," - said Wang Yu, a senior currency strategist at HSBC Holdings Plc in Hong Kong. "China will not stop in the global expansion of the yuan due to the volatility of currencies in emerging markets."

CFETS is an agency under the People's Bank of China.

Thus, although the US is still trumpeting the "destruction" of the Russian economy (even if it means the destruction of the oil shale industry, which knows that it is the only bright spot, the industry provides high-paying jobs in the US economy over the past 5 years), Russia and China still pushed the West to the financial and strategic convergence, until one day, as we have long predicted China and Russia announced a joint currency, which will be supported by the Chinese as "amazing" gold reserves, and the Russian "secret inventory. "

Then all the fun and starts

Western Culture Suffers Three Problems: it is False; it is Immoral; and it is Dangerous.

The Clash Of Civilizations

Submitted by Tyler Durden on 12/29/2014

Submitted by Ben Hunt via Salient Partners' Epsilon Theory blog,

Thomas Cole, “The Course of Empire: Destruction” (1836)

In the emerging world of ethnic conflict and civilizational clash, Western belief in the universality of Western culture suffers three problems: it is false; it is immoral; and it is dangerous.
– Samuel P. Huntington, “The Clash of Civilizations and the Remaking of World Order” (1996)

The West won the world not by the superiority of its ideas or values or religion … but rather by its superiority in applying organized violence. Westerners often forget this fact; non-Westerners never do.
– Samuel P. Huntington (1927 – 2008)

The argument now that the spread of pop culture and consumer goods around the world represents the triumph of Western civilization trivializes Western culture. The essence of Western civilization is the Magna Carta, not the Magna Mac. The fact that non-Westerners may bite into the latter has no implications for their accepting the former.
– Samuel P. Huntington (1927 – 2008)

Islam's borders are bloody and so are its innards. The fundamental problem for the West is not Islamic fundamentalism. It is Islam, a different civilization whose people are convinced of the superiority of their culture and are obsessed with the inferiority of their power.
– Samuel P. Huntington (1927 – 2008)

Q: What do you think of Western civilization?
A: I think it would be a good idea.
– Mahatma Gandhi (1869 – 1948)

Adrian Veidt:  It doesn't take a genius to see that the world has problems.

Edward Blake: No, but it takes a room full of morons to think they're small enough for you to handle.
– “Watchmen” (2009)

Our civilization is flinging itself to pieces. Stand back from the centrifuge.
– Ray Bradbury, “Fahrenheit 451” (1953)

Upon learning of Cardinal Richelieu’s death, Pope Urban VIII is alleged to have said, “If there is a God, then Cardinal de Richelieu will have much to answerfor. If not … well, he had a successful life.” – Henry Kissinger, “Diplomacy” (1994)

Corrupt politicians make the remaining ten percent look bad.– Henry Kissinger (b. 1923)

Poor old Germany. Too big for Europe, too small for the world. – Henry Kissinger (b. 1923)

The most fundamental problem of politics is not the control of wickedness but the limitation of righteousness.– Henry Kissinger, 
“A World Restored: Metternich, Castlereagh and the Problems of Peace, 1812-22” (1957)

Order should not have priority over freedom. But the affirmation of freedom should be elevated from a mood to a strategy. – Henry Kissinger, 
“World Order: Reflections on the Character of Nations and the Course of History” (2014)

A more immediate issue concerns North Korea, to which Bismarck’s nineteenth-century aphorism surely applies: “We live in a wondrous time, in which the strong is weak because of his scruples and the weak grows strong because of his audacity.” – Henry Kissinger, 
“World Order: Reflections on the Character of Nations and the Course of History” (2014)

In the end, peace can be achieved only by hegemony or by balance of power.– Henry Kissinger 
(b. 1923)

Isaac: Has anybody read that Nazis are gonna march in New Jersey? Ya know? I read it in the newspaper. We should go down there, get some guys together, ya know, get some bricks and baseball bats, and really explain things to 'em.

Party Guest: There was this devastating satirical piece on that on the op-ed page of the Times, just devastating.

Isaac: Whoa, whoa. A satirical piece in the Times is one thing, but bricks and baseball bats really gets right to the point of it.

Party Guest: Oh, but really biting satire is always better than physical force.

Isaac: No, physical force is always better with Nazis.– “Manhattan” (1979)

Lots of quotes this week, particularly from my two favorite war criminals – Sam Huntington and Henry Kissinger. Everyone has heard of Kissinger, fewer of Huntington, who may have been even more of a hawk and law-and-order fetishist than Kissinger but never sufficiently escaped the ivory towers of Harvard to make a difference in Washington. Like me, Kissinger bolted academia at his first real opportunity for a better gig and never looked back, which is probably why I always found him to be so personally engaging and fun to be around. Sam Huntington … not so much.

But Huntington’s “Clash of Civilizations” argument is not just provocative, curmudgeonly, and hawkish. It is, I think, demonstrably more useful in making sense of the world than any competing theory,which is the highest praise any academic work can receive. Supplement Huntington’s work with a healthy dose of Kissinger’s writings on “the character of nations” and you’ve got a cogent and predictive intellectual framework for understanding the Big Picture of international politics. It’s a lens for seeing the world differently – a lens constructed from history and, yes, game theory – and that’s what makes this a foundational topic for Epsilon Theory.

Huntington and Kissinger were both realists (in the Thucydides and Bismarck sense of the word), as opposed to liberals (in the John Stuart Mill and Woodrow Wilson sense of the word), which basically just means that they saw human political history as essentially cyclical and the human experience as essentially constant. Life is fundamentally “nasty, brutish, and short”, to quote Thomas Hobbes, and people band together in tribes, societies, and nation-states to do something about that. 

As such, we are constantly competing with other tribes, societies, and nation-states, and the patterns of that competition – patterns with names like “balance of power” and “empire” and “hegemony” – never really change across the centuries or from one continent to another. Sure, technology might provide some “progress” in creature comforts and quality of life (thank goodness for modern dentistry!), but basically technology just provides mechanisms for these political patterns to occur faster and with more devastating effect than before.

The central point of “Clash of Civilizations” is that it’s far more useful to think of the human world as divided into 9 great cultures (Huntington calls them civilizations, but I’ll use the words interchangeably here) rather than as 200 or so sovereign nations.Those cultures – Western, Orthodox (Russian), Islamic, African, Latin American, Sinic (Chinese), Hindu, Buddhist, and Japonic – are persistent and profoundly influential in ways that national borders and national institutions aren’t.Huntington argues that these 9 cultures are the most meaningful current expressions of the human animal’s inherent social imperatives, and that the logic of competition between these cultures explains and illuminates human history far better than competing notions, particularly those (like Marxism and liberalism) that assume an up-and-to-the-right direction to the arrow of history.

Marxism and liberalism are inherently optimistic visions of human society. Things are always getting better … or they will be better just as soon as people wake up and recognize their enlightened self-interest … as ideas of proletariat empowerment (Marxism) or individual rights as instantiated by free markets and free elections (liberalism) inexorably spread throughout the world. For realists like Huntington and Kissinger, on the other hand, this is nonsense. Free markets and free elections are good things (as is proletariat empowerment, frankly), but these central concepts of liberalism onlymean what we Westerners think they mean if they exist within the entire context of Western culture. 

To insert the practices and institutions of liberalism into the Sinic culture, for example, might look awfully pretty to the Western eye and fill us with righteous pride, but it’s just a veneer. It won’t stick. The West may very well want to impose the practices and institutions of free markets and free elections for its own self-interest, and China may want toadopt the practices and institutions of free markets (but not free elections) for its own self-interest, but the logic of self-interest is a VERY different thing than the triumphalist claim that the liberal ideas of Western free markets and free elections are “naturally” spreading throughout the world.

A brief aside here on the distinction between personal beliefs and useful models. I’m not saying that I believe that authoritarian regimes and jihadist despots have some sort of moral equivalence to liberal governments, or that human rights don’t matter, or any of the other tired bromides used to tar realists. On the contrary, I personally believe that everyone in the non-Western world would be better off … MUCH better off … if their governing regimes gave a damn about individual rights and liberties in the same way that ANY governing regime in the West does. I believe that the principles of liberalism are the best ideas on social organization that the human animal has ever devised, and I’d like to spread these ideals into every corner of the globe. And you know what? 

On a personal level, Sam Huntington and Henry Kissinger believed exactly the same thing. Kissinger fought in the Battle of the Bulge. He won the freakin’ Bronze Star for his work tracking down Gestapo agents in Hanover. Does that sound like a moral relativist? Huntington served in the Jimmy Carter administration, for god’s sake. Talk about personal sacrifices …

But what a realist recognizes is that our personal vision of how we would like the world to be is not an accurate representation of The World As It Is, and – as Huntington wrote – it’s false, immoral, and dangerous to pretend otherwise. The World As It Is today includes the birth of an Islamic Caliphate, effectively erasing Western colonialist borders from Iraq to Syria to Libya as it spews anti-modern carnage. The World As It Is today includes the violent sundering of Ukraine along Orthodox/Western cultural lines. The World As It Is today includes an insane Sinic theocracy in North Korea with nuclear weapons. 

The World As It Is today includes a Japonic culture that is, in a very real sense, dying. Is a realist happy about any of this? Is a realist satisfied to shrug his shoulders and retreat into some isolationist shell? No, of course not. But a realist does not assume that there are solutions to these problems. Certainly a realist does not assume that there are universal principles like “free and fair elections” that can or should be applied as solutions to these problems. 

Some problems are intractable because they have been around for hundreds or thousands of years and are part and parcel of the Clash of Civilizations. They’re not going away no matter how hard some American President stomps his feet or how many drones he releases or how stern an op-ed piece is printed in the New York Times or how warm and fuzzy we feel when we see a picture of an Iraqi woman proudly displaying her finger freshly inked from voting. Yes, I know I’m an a-hole for criticizing the whole “purple revolution” thing. Doesn’t mean I’m wrong.

Kissinger wasn’t kidding when he said that there were two and exactly two solutions to international problems: 1) hegemony (i.e., empire) over the opposing Civilization, or 2) balance of power with the opposing Civilization. The problem, of course, is that Door #1 is awfully expensive. 

For example, if you’re not prepared to push Germany into recession and risk a lot of lives – and I mean a LOT of lives – by expanding the NATO umbrella over Ukraine, then there’s no way you’re going to reverse a basic balance of power reality like“Russia gets a warm water port on the Black Sea, no matter what the petty satraps in Kiev think about that”. Sorry, but that’s the “solution” if you’re not happy with Russia’s annexation of the Crimea and Eastern Ukraine, and I have yet to meet anyone who’s willing to pay that price. 

Are there aspects of The World As It Is where you ARE prepared to pay the high price of empire to prevent a balance of power equilibrium? It’s a short list for me, but yes, there is a list, headed by the preservation of Israel and South Korea as (largely) Western outposts in the middle of non-Western cultures. Is nation-building in Afghanistan on the list? Don’t make me laugh.

I think the crucial issue here (as it is with so many things in life) is to call things by their proper name. We’ve mistaken the self-interested imposition and adoption of so many Western artifices – the borders between Syria and Iraq are a perfect example, but you can substitute “democracy in Afghanistan” if you like, or “capital markets in China” if you want something a bit more contentious – for the inevitable and righteous spread of Western ideals on their own merits. 

This is a problem for one simple reason: if you think Something happened because of Reason A (ideals spreading “naturally” and “inevitably” within an environment of growing global cooperation), but it really happened because of Reason B (practices imposed or adopted out of regime self-interest within an environment of constant global competition), then you will fail to anticipate or react appropriately when that Something changes.

And here’s the kicker: change is coming. The Clash of Civilizations is not going to get better in 2015. It’s going to get worse. Why?Because for the past five years we have had a US government that was willing to pay the high price of empire to extend its monetary policy hegemony over the entire world to save the infrastructure of modern Western civilization: the US banking system and its collateral assets. Five trillion dollars later, the Fed has now declared victory and is demobilizing the QE troops. Is it a lasting victory? I don’t know and it doesn’t really matter. 

It’s a useless question. In the immortal words of Bill Parcells, you are what your record says you are, and the Fed’s record looks pretty darn good. So they’re declaring victory and that’s how it will go down in the history books. The better question is: what now? What happens in the rest of the world now that the peace-keeping and price-raising and prosperity-bringing delivered by five trillion dollars in asset purchases … stops?

Part of the answer – a small part of the answer – is that other central banks with printing presses will try to take up some of the slack. The BOJ will continue to weaken the yen and monetize the government’s debt, and the ECB will do the same thing, although they will do less and will be forced to jump through bizarre hoops to preserve the pleasant fiction that they’re not monetizing government debt. I say that this is a small part of the answer to the question of “what now?” – even though if you listen to the prognosticators in financial media you would think that this is the entire answer – because monetary policy divergence, as important as it is, pales in comparison to political divergence.

I don’t think it’s an accident that Ukraine starts ripping itself apart as the largest monetary experiment in the history of man starts to wind down. Or that ISIS starts to remap the entire Middle East. Or that North Korea attacks Sony. Or that the price of oil drops by half as OPEC faces its greatest existential threat. Did the Fed cause these events? Of course not. But they’re not unrelated. 

They’re all part of the fabric of global deleveraging. This is what happens when you have a global debt crisis and politicians respond to maintain the status quo by any means necessary – the political center does not hold. Whether you’re talking about the 1870’s or the 1930’s or today, it’s always the same story … domestic coalitions and sovereign nations and international alliances that were held together by mutual absolute gains in the good times are driven apart by relative gains and losses in the bad times, and those domestic coalitions and sovereign nations and international alliances that bridge two ancient civilizations are thrown into the centrifuge most of all.

The market flash points for 2015 are not limited to the obvious suspects, like Ukraine and ISIS. In fact, most of the obvious suspects are not terribly impactful on major markets, and some have the perverse effect of providing “good news” for markets the worse their situation becomes. For example, to the degree that Ukraine-related sanctions on Russia damage German growth rates, the market believes that this forces still greater ECB market accommodation and direct propping-up of financial asset prices in the Eurozone. 

The non-obvious suspects I’m looking at are countries that, like Ukraine, find themselves with one foot in one civilization and one foot in another but, unlike Ukraine, are much more central to global markets. Those countries are Greece, Turkey, Iran, Egypt, and South Korea. I wrote about Greece two weeks ago, so won’t repeat all that here.Turkey, Iran, and Egypt are all the same basic story – ancient civilizations that had their day in the sun many centuries ago and are now being consumed by the Borg-like entity that is Islam. 

Persia, the most potent of the three cultures, is completely lost. Egypt is lost but hasn’t realized it yet, like a chicken running around with its head cut off. Turkey, the least of the three, has adopted enough Western antibodies to provide some resistance, but it’s just a matter of time before it becomes the Sick Man of Europe once again. South Korea … judging from how little it is discussed in the Western press it sometimes seems like no one cares about South Korea, and that’s a mistake. No country on earth is split between more civilizations, and no country is as sensitive AND vulnerable to the clashes that are coming down the pike.

So … am I terrified by the Clash of Civilizations? Am I getting out of the market and running for the hills? No. Not yet, anyway. So long as the market is dominated by the Narrative of Central Bank Omnipotence, any of these flash points that I’ve mentioned will inevitably be seen through the lens of monetary policy accommodation, making bad news in the real world good news for major stock markets, particularly here in the US. Global growth will get even more pathetic, of course, but that’s positive for major government bonds. Of all the flash points above I’m probably most concerned about Greece, but even then the concern is more for what Greece ultimately means for Italian politics than for what it means to Europe or major global markets directly.

What scares me about the Clash of Civilizations is that the three leaders of the three biggest civilizations – the US (Western), China (Sinic), and Russia (Orthodox) – will misplay their hands and take on another civilization directly or, worse, take on each other, and that will vaporize the Narrative of Central Bank Omnipotence in a nanosecond. The existential risk here for markets is not that China/Russia/Europe/America might “collapse”, whatever that means.

No, the existential risk is that the great civilizations of the world will be “hollowed out” internally, so that the process of managing the ten thousand year old competition between civilizations devolves into an unstable game of pandering to domestic crowds rather than a stable equilibrium of balance of power. Don’t take my word for it. Take the word of America’s finest diplomat since Benjamin Franklin, writing in his final book and delivering his most important warning.

Side by side with the limitless possibilities opened up by the new technologies, reflection about international order must include the internal dangers of societies driven by mass consensus, deprived of the context and foresight needed on terms compatible with their historical character. As diplomacy is transformed into gestures geared toward passions, the search for equilibrium risks giving way to a testing of limits. …

Because information is so accessible and communication instantaneous, there is a diminution of focus on its significance, or even on the definition of what is significant. This dynamic may encourage policymakers to wait for an issue to arise rather than anticipate it, and to regard moments of decision as a series of isolated events rather than part of a historical continuum. When this happens, manipulation of information replaces reflection as the principal policy tool.
– Henry Kissinger, “World Order: Reflections on the Character of Nations and the Course of History” (2014)

I can’t over-emphasize how important I think this passage is, and I’ll be returning to it again in future Epsilon Theory notes. For now, though, I’ll just introduce two key game theoretic concepts at the core of Kissinger’s warning.

First, the proliferation of the most dangerous game of all – Chicken. When Kissinger writes about how “the search for equilibrium risks giving way to a testing of limits”, he’s talking about how ordinary diplomatic maneuvers can deteriorate into brinksmanship, the hallmark of the game of Chicken. I’ve written a little bit about this game in the context of the Fed-inspired “Taper Tantrum” in the summer of 2013, when Bernanke et al misread the market impact of a change in the acceleration of monetary easing, but that little episode will look like a gentle spring shower compared to the market storm that could result from a full-scale game of Chicken between, say, China and Japan over trade, exchange rates, and offshore oil and gas reserves in the South China Sea. 

Chicken is such a dangerous game because it has no equilibrium, no outcome where all parties prefer where they are to where they might be. This constant cycling of one unstable outcome to another typically ends in disaster because the least worst outcome for each player – the “move” that each player makes to respond strategically to the other player’s most recent limit-testing actions – doesn’t remain constant but gets progressively worse over time. The game of Chicken is a mutual spiral into oblivion, and once you start down this road it’s really hard to stop because stopping means admitting defeat.

Second, the dumbing-down of all political games into their most unstable form – the single-play game. When Kissinger writes about how political leaders come to see “moments of decision as a series of isolated events”, he’s talking about the elimination of repeated-play games and shrinking the shadow of the future. Most games seem really daunting at first glance. For example, the Prisoner’s Dilemma is famous for having a very stable equilibrium where everyone is worse off than they easily could have been with some very basic cooperation. But there’s a secret to solving the Prisoner’s Dilemma – play it lots of times with the same players. Cooperation and mutually advantageous equilibria are far easier to achieve within a repeated-play game because reputation matters. 

The shadow of the future looms large if you’re thinking not only about this iteration of the game and the moves ahead, but also about the next time you have to play the game, perhaps for larger stakes, and the next, and the next. Imagine if you sat down at a poker table, were dealt one hand, and were then informed that everyone would have to get up and find another table with new players, at which point only one hand would be dealt there, too. That’s a series of single-play games, and it’s just as unpleasant as it sounds, whether you’re playing poker or you’re playing politics.

It won’t surprise many regular readers of Epsilon Theory if I say that I think much of what Kissinger warns about – “societies driven by mass consensus”, “gestures geared towards passions”, “manipulation of information” – has now reached, if not its full fruition, then at least a new quantum level of advanced and ubiquitous practice. And not just in the US, but also Russia and China and everywhere in between. Twenty-three years after Sam Huntington first presented his “Clash of Civilizations” argument, the conditions for that realist confrontation to be terribly severe are finally met. 2014 wrote an unpleasant story of nascent international splintering and conflict. Unfortunately, I think it was just an introductory chapter in a much longer book.

The Outlook for the New Year — Paul Craig Roberts

The Outlook for the New Year — Paul Craig Roberts

The Outlook for the New Year,

Dear Readers: The conflict that Washington has initiated between the West and Russia/China is reckless and irresponsible. Nuclear war could be the outcome. Indeed, Washington has been preparing for nuclear war since the George W. Bush regime.

Washington has revised US war doctrine in order to initiate conflict with a first strike nuclear attack.
Washington has discarded the ABM treaty in order to build and deploy anti-ballistic missiles that are intended to prevent a retaliatory strike against the US. Washington is engaged in a buildup of military forces on Russia’s borders, and Washington is demonizing Russia’s government with false charges.
As the Bush/Obama regimes dismantled the safeguards put in place in order to minimize the risk of nuclear war, no protests came from the American public or the media. Washington’s European vassal states have also been silent.

Washington’s drive for hegemony has brought nuclear insanity to the world.

Moscow and Beijing understand that they are Washington’s targets. As Larchmonter explains, Russia and China are conjoining their economic and military capabilities in order to protect against Washington’s attack. Read what Larchmonter reports. Open the URL in my column below and run your cursor over the bottom of the page and click “page fit.” Choose 50% and readable text will fill your screen.

Washington’s demonization of Saddam Hussein, Gaddafi, and Assad were preludes to military attacks on Iraq, Libya, and Syria. In view of these precedents, it is reasonable to regard Washington’s demonization of Vladimir Putin as a prelude to military action.

Russia is not Iraq, Libya, or Syria. Russian war doctrine states that Russia can use nuclear weapons in response to a nuclear or conventional attack on Russia. For the world to sit silent while Washington’s arrogance provokes armageddon telegraphs total political failure. Where are the voices in behalf of humanity?

The Outlook for the New Year
Paul Craig Roberts

Washington has shaped 2015 to be a year of conflict. The conflict could be intense.

Washington is the cause of the conflict, which has been brewing for some time. Russia was too weak to do anything about it when the Clinton regime pushed NATO to Russia’s borders and illegally attacked Yugoslavia, breaking the country into small easily controlled pieces. 

Russia was also too weak to do anything about it when the George W. Bush regime withdrew from the ABM treaty and undertook to locate anti-ballistic missile bases on Russia’s borders. Washington lied to Moscow that the purpose of the ABM bases is to protect Europe from non-existent Iranian nuclear ICBMs. However, Moscow understood that the purpose of the ABM bases is to degrade Russia’s nuclear deterrent, thereby enhancing Washington’s ability to coerce Russia into agreements that compromise Russian sovereignty.

By summer 2008 Russian power had returned. On Washington’s orders, the US and Israeli trained and equipped Georgian army attacked the breakaway republic of South Ossetia during the early hours of August 8, killing Russian peacekeepers and civilian population. Units of the Russian military instantly responded and within a few hours the American trained and equipped Georgian army was routed and defeated. Georgia was in Russia’s hands again, where the province had resided during the 19th and 20th centuries.

Putin should have hung Mikheil Saakashvili, the American puppet installed as president of Georgia by the Washington-instigated “Rose Revolution”, and reincorporated Georgia into the Russian Federation. Instead, in a strategic error, Russia withdrew its forces, leaving Washington’s puppet regime in place to cause future trouble for Russia. 

Washington is pushing hard to incorporate Georgia into NATO, thus adding more US military bases on Russia’s border. However, at the time, Moscow thought Europe to be more independent of Washington than it is and relied on good relations with Europe to keep American bases out of Georgia.

Today the Russian government no longer has any illusion that Europe is capable of an independent foreign policy. Russian President Vladimir Putin has stated publicly that Russia has learned that diplomacy with Europe is pointless, because European politicians represent Washington’s interest, not Europe’s. Foreign Minister Sergei Lavrov recently acknowledged that Europe’s Captive Nation status has made it clear to Russia that Russian goodwill gestures are unable to produce diplomatic results.

With Moscow’s delusion shattered that diplomacy with the West can produce peaceful solutions, reality has set in, reinforced by the demonization of Vladimir Putin by Washington and its vassal states. Hillary Clinton called Putin the new Hitler. While Washington incorporates former constituent parts of the Russian and Soviet empires into its own empire and bombs seven countries, Washington claims that Putin is militarily aggressive and intends to reconstitute the Soviet empire. Washington arms the neo-nazi regime Obama established in Ukraine, while erroneously claiming that Putin has invaded and annexed Ukrainian provinces. All of these blatant lies are echoed repeatedly by the Western presstitutes. Not even Hitler had such a compliant media as Washington has.

Every diplomatic effort by Russia has been blocked by Washington and has come to naught. So now Russia has been forced by reality to update its military doctrine. The new doctrine approved on December 26 states that the US and NATO comprise a major military threat to the existence of Russia as a sovereign independent country.

The Russian document cites Washington’s war doctrine of pre-emptive nuclear attack, deployment of anti-ballistic missiles, buildup of NATO forces, and intent to deploy weapons in space as clear indications that Washington is preparing to attack Russia.

Washington is also conducting economic and political warfare against Russia, attempting to destabilize the economy with economic sanctions and attacks on the ruble. The Russian document acknowledges that Russia faces Western threats of regime change achieved through “actions aimed at violent change of the Russian constitutional order, destabilization of the political and social environment, and disorganization of the functioning of governmental bodies, crucial civilian and military facilities and informational infrastructure of Russia.” Foreign financed NGOs and foreign owned Russian media are tools in Washington’s hands for destabilizing Russia.

Washington’s reckless aggressive policy against Russia has resurrected the nuclear arms race. Russia is developing two new ICBM systems and in 2016 will deploy a weapons system designed to negate the US anti-ballistic missile system. In short, the evil warmongers that rule in Washington have set the world on the path to nuclear armageddon.

The Russian and Chinese governments both understand that their existence is threatened by Washington’s hegemonic ambitions. Larchmonter reports that in order to defeat Washington’s plans to marginalize both countries, the Russian and Chinese governments have decided to unify their economies into one and to conjoin their military commands. Henceforth, Russia and China move together on the economic and military fronts. http://www.mediafire.com/view/08rzue8ffism94t/China-

The unity of the Bear and the Dragon reduces the crazed neoconservatives’ dream of “an American century” to dangerous nonsense. As Larchmonter puts it, “The US and NATO would need Michael the Archangel to defeat China-Russia, and from all signs Michael the Archangel is aligned with the Bear and its Orthodox culture. There is no weapon, no strategy, no tactic conceivable in the near future to damage either of these rising economies now that they are ‘base pairs.’”

Larchmonter sees hope in the new geopolitics created by the conjoining of Russia and China. I don’t dispute this, but if the arrogant neoconservatives realize that their hegemonic policy has created a foe over which Washington cannot prevail, they will push for a pre-emptive nuclear strike before the Russian-Chinese unified command is fully operational. To forestall a sneak attack, Russia and China should operate on full nuclear alert.

The US economy–indeed the entire Western orientated economy from Japan to Europe–is a house of cards. Since the economic downturn began seven years ago, the entirety of Western economic policy has been diverted to the support of a few over-sized banks, sovereign debt, and the US dollar. Consequently, the economies themselves and the ability of populations to cope have deteriorated.

The financial markets are based on manipulation, not on fundamentals. The manipulation is untenable. With debt exploding, negative real interest rates make no sense. With real consumer incomes, real consumer credit, and real retail sales stagnant or falling, the stock market is a bubble. 

With Russia, China, and other countries moving away from the use of the dollar to settle international accounts, with Russia developing an alternative to the SWIFT financial network, the BRICS developing alternatives to the IMF and World Bank, and with other parts of the world developing their own credit card and Internet systems, the US dollar, along with the Japanese and European currencies that are being printed in order to support the dollar’s exchange value, could experience a dramatic drop in exchange value, which would make the import-dependent Western world dysfunctional.

In my opinion, it took the Russians and Chinese too long to comprehend the evil that has control in Washington. Therefore, both countries risk nuclear attack prior to the full operational capability of their conjoined defense. As the Western economy is a house of cards, Russia and China could collapse the Western economy before the neoconservatives can drive the world to war. As Washington’s aggression against both countries is crystal clear, Russia and China have every right to the following defensive measures.

As the US and EU are conducting economic warfare against Russia, Russia could claim that by wrecking the Russian economy the West has deprived Russia of the ability to repay loans to the European banks. If this does not bring down the thinly capitalized EU banks, Russia can announce that as NATO countries are now officially recognized by Russian war doctrine as an enemy of the Russian state, Russia can no longer support NATO’s aggression against Russia by selling natural gas to NATO members. If the shutdown of much of European industry, rapidly rising rates of unemployment, and bank failures do not result in the dissolution of NATO and thus the end of the threat, the Chinese can act.

The Chinese hold a very large amount of dollar-denominated financial assets. Just as the Federal Reserve’s agents, the bullion banks, dump massive shorts onto the bullion futures markets during periods of little activity in order to drive down the bullion price, China can dump the equivalent in US Treasuries of years of Quantitative Easing in a few minutes. If the Federal Reserve quickly creates dollars with which to purchase the enormous quantity of Treasuries so that the financial house of cards does not implode, the Chinese can then dump the dollars that they are paid for the bonds in the currency market. Whereas the Federal Reserve can print dollars with which to purchase the Treasuries, the Fed cannot print foreign currencies with which to buy the dollars.

The dollar would collapse, and with it the power of the Hegemon. The war would be over without a shot or missile fired.

In my view, Russia and China owe it to the world to prevent the nuclear war intended by the neoconservatives simply by replying in kind to Washington’s economic warfare. Russia and China hold all the cards. Not Washington.

Russia and China should give no warning. They should just act. Indeed, instead of step by step, Russia and China could simultaneously use the counter-measures. With four US banks holding derivatives totaling many times world GDP, the financial explosion would be the equivalent to a nuclear one. The US and Europe would be finished, and the world would be saved.

Larchmonter possibly is correct. 2015 could be a very good year, but pre-emptive economic moves by Moscow and Beijing could be required. Putin’s current plan seems to be to turn away from the West, ignore the provocations, and mesh Russia’s strategic and economic interests with those of Asia. This is a humane and reasonable course of action, but it leaves the West untroubled and undistracted by its economic vulnerabilities. An untroubled West remains a grave danger not only to Russia and China but also to Americans and the entire world.

#Ukraine’s “Yats” is ready to place an education tax on schools to create a zombie generation.

Ukraine’s “Yats” is ready to place an education tax on schools. This is how you create a zombie generation.

By alexrpt on Dec 29, 2014

Ukrainian Prime Minister Arseniy Yatsenyuk is adding a 20% VAT tax to secondary schools, in an effort to bleed funds from Ukraine's youth and divert them into his war projects as ordered by his Washington masters.

How do you make sure you create a nation of fools, with no sense of culture, history, or free thought?

The answer is simple, you get to the young minds early.

Whitney Houston may have sung about ‘believing children are the future’, but in Ukraine the future is war.

Ukrainian Prime Minister Arseniy Yatsenyuk, the ultimate US lackey, has set out a plan to make sure his country’s children avoid getting too smart, creative or cultured while in school.

Yats is pushing to add a V.A.T. tax on secondary schools, bleeding them of needed funds, and locking in Ukraine’s war path for decades to come. This is how you build a nation of zombies, you and your Oligarch buddies can easily throw into the battlefield.

The V.A.T. tax that Yats plans to add to schools (so that revenue earned can then be pumped into his US master’s war nation project) is meeting fierce opposition from his former spokesperson.

Via Ukraina.ru:

Yvanna Kobernik, the former spokesperson for Ukrainian Prime Minister Arseniy Yatsenyuk, comments on the government’s decision to charge education tax “The new government is giving us hell. Bill No. 1578 aims to destroy everything we have fought for all these years,” Kobernik writes on her Facebook account.

“The Cabinet of Ministers hasn’t come up with anything better than to charge 20 percent value-added tax on education services. This measure would shut down music, sports and secondary schools, and it would prevent talented children from developing their abilities and taking part in extra-curricular education.

It would destroy preschool education and shut down private schools, which make up only one percent of all schools nationwide,” she notes. The decision of the post-Euromaidan government aims to scale down education services and to stop the personal growth of children. “From now on, we will have to pay cash on the nail and hire home tutors. Yatsenyuk, Yaresko (Ukrainian Minister of Finance – Ed.) & Co., are you and your children planning to live in California? The United States and the European Union provide extra benefits to parents paying for their children to go to private school.

With such ideas, you will not last until March 1,” Kobernik notes. Kobernik, a journalist, host of the Fakty (Facts) TV show and editor in chief of the Svoboda Slova (Freedom of Speech) talk show, supported Euromaidan protesters from the very outset and was also Yatsenyuk’s spokesperson in 2010-2011.



US media: Resentment grows in Europe over US policy

US media: Resentment grows in Europe over US policy

 Journalist Patrick Smith of the US online magazine Salon.com says a growing number of European politicians refuse to support the United States’ policy on Russia and Ukraine Smith believes that recent statements by certain European leaders, including Italian Prime Minister Matteo Renzi, French President Fran├žois Hollande, and Danish Foreign Minister Martin Lidegaard, serve as evidence.

 These politicians, he says, have shown in "one way or the other" that they do not support the US policy of sanctions. The destructiveness of the sanctions policy is already affecting other countries in addition to Russia, he thinks. According to Smith, in 2008 Europe had enough power to deal with economic issues – while now, this power is almost gone.

 The journalists notes that these issues, including the "chaos" in the currency markets of Russia’s neighboring countries, are being ignored by the US media. Drawing a parallel, Smith recalled the fact President Obama announced his move to lift the sanctions against a "humane and very brave" country, Cuba, saying that the US failed to accomplish the objective of "promoting the emergence of a democratic, prosperous and stable Cuba," but he imposed sanctions against Russia and signed the Ukraine Freedom Support Act. By signing the "cowardly" Ukraine Freedom Support Act, Obama has again shown his inconsistency and officially given himself "permission to inflict pointless suffering on the humane and very brave Russian people," the publication writes.

 According to Smith, it is economically beneficial for the United States to drive a wedge between the EU and Russia by promoting the Ukrainian crisis. He said that the international situation will only get more complicated in 2015, between Europe and Russia or between Europe and the US. The journalist says he very much hopes for the latter, suggesting that chances are things will go that way.

West wants to stop confrontation with Russia over Ukrainian crisis.

Federica Mogherini stated Sunday that the West wants to stop confrontation with Russia over Ukrainian crisis.EU High Representative for Foreign Affairs and Security Policy Federica Mogherini said that she has not yet decided on whether to go to Moscow for talks on the peaceful settlement of the Ukrainian crisis.
© REUTERS/ Francois Lenoir

ROME, December 28 (Sputnik) — Western countries wish to end the “logic of confrontation” in its relations with Russia over the Ukrainian crisis and engage in direct dialogue with Moscow, EU’s foreign policy chief Federica Mogherini said Sunday.

“I often speak to [US Secretary of State John] Kerry and there is complete unity in views on the Ukrainian crisis, and similar views exist in other countries, from Canada to Japan. And everyone wants to end the logic of confrontation, the wall to wall,” Mogherini said in an interview with the Italian La Repubblica newspaper. 

According to the European Union's foreign policy chief, the current situation is very difficult for Russia and it is in Moscow’s interests to help end the Ukrainian conflict. Meanwhile, the West must “begin direct discussions with Moscow over our mutual relations and the role Russia can play in other crises”.

“Russia has an important role not only in Ukraine, but also in Syria, Iran, the Middle East, Libya,” she told the newspaper.

Relations between Russia and the West have been strained in recent months as the European Union, the United States and a number of their allies have introduced several rounds of sanctions against Moscow over its alleged meddling in the Ukrainian crisis.

Russia has repeatedly denied any involvement in Ukraine’s internal affairs and called on Kiev to engage in talks with the breakaway regions in the country’s southeast to find a peaceful solution to the conflict.

On Saturday, the Russian Foreign Ministry released a statement, saying that despite the complexity of the current situation, relations with the European Union will be one of Russia’s top priorities in the upcoming years. Relations with the United States can also be restored if Washington shows readiness to engage in dialogue with Moscow on the basis of respect and equality, the ministry said.

Sunday, December 28, 2014

Why is America so vane as to escalate the situation around the world?

Why is America so vane as to escalate the situation around the world? 



After all vanity - the ideal environment for errors. The errors in the geopolitics none forgives. Here is just a small list of the last error of the White House: Assad was deposed. And if it were not for Putin's proposal to separate the world, subject to the elimination of Syrian chemical weapons, Obama would have to climb into another war (well, why so loud the whole world screaming about the "red lines"?)
It did not happen in Syria - Switch on Ukraine - and "lose" the Crimea, as well as a heap of very bad history behind Boeing, which still awaits resolution. Staged a "revolution of umbrellas" in Hong Kong. Have achieved nothing? Angered China, and the accelerated economic integration with Russia and the BRICS countries. Treat alcoholism is now possible at home Turkish Airlines stewardess sacked for beauty (photo) Immediately after that, I do not want to smoke anymore! 

The unique technique Middle East rampant gang LIH. And everyone knows who created them, sponsors and buys them stolen oil. So much so, that some zealous media compared Putin to Hitler. Here whose cow would then silence: in Kiev Bandera and neo-fascists organize torchlight processions and destroy his people under the shameful silence "progressive mankind." 

Merkel has openly criticized the Bundestag and on the street for his commitment to American interests. But it is the man of the year ... the American version of the same magazine. Circus and only ... Really, really, so got so hot that the preservation of his person and his allies have no one thinks? Sometimes it even seems that the state of America felled deliberately, and along with those who are tied to it. 

Well, how else can you evaluate this whole farce involving Psaki and Matthew Lee? Want to see what has become the official America - see Psaki. Matthew Lee or drag away from it, that is ... Today America is repeating the same mistake as the Soviet-era "developed socialism", only on a large scale. Jokes about Obama in his homeland have probably not less than about Brezhnev and Gorbachev in the late USSR. 

The ideology of global domination, completely divorced from economic realities of the modern world, ruining the state "America." And all this for the sake of retaining power in the hands of a bunch of old oligarchic families (members of the Politburo in analogy with the Soviet Union). A little more and the West as a single political and ideological alliance, will suffer the same fate as the late Soviet Union and the socialist countries. Decay. 

But maybe the US and its allies have a plan of salvation from imminent bankruptcy? A plan "B", or, at worst, "HPP" - a cunning plan P ... America? Under the current system of allocation of funds between all economic actors and methods of forming the US federal budget is nothing you can change. Or reduce consumption of the financial elite (themselves?). Or run into a rage and anger hungry crowd. And "outside" - you can profit only on trifles - billions of Hussein, Gaddafi and some other small things. But this is only little birds for ten-striped boa. 

In this case, how much was spent budget funds to assign to a private shop these same billions! Economic foundation of any state is the state budget. The problem of the budget deficit is solved or sequestration, which is unacceptable for the US (this will reduce GDP and the collapse of stock markets) or borrowing. But the national debt can not grow indefinitely, because the cost of its maintenance are also budgeted. 

To increase the budget, of course, possible, but also only through debt rather than through taxes (increase in tax rates in the US will lead to a drop in GDP and capital outflows). Deadlock. Can you solve the problem of the federal budget deficit at the expense of other countries? You can. But only partially and briefly (Treasuries). You can not call the purchase of US government bonds paying tribute to America. Under these papers exporting countries get cheap loans and markets its products.

Well, I would not support the US budget China, if he was not profitable. Is it possible to radically solve the problem of US debt (to be written off, and "we will forgive our debts")? No. Without serious consequences for the entire dollar system, as a system of global domination, it is impossible. Theoretically, of course, possible, but only by destroying alternative sources of military force in the world - Russia and China. 

But maybe America Unscrew hand its geopolitical competitors using their financial weapons ? Let's see. High oil prices and cheap Western loans strengthen Russia as a military superpower. A Western investment in the industry in China made ​​its first economy in the world. Conversely, controlled collapse of oil prices and a ban on cheap Western credits (sanctions) today hit primarily by European industry, and serve as a great incentive for the speedy restructuring of the Russian economy (import substitution ), as well as increases the investment attractiveness of China. 

And bent shale revolution in the United States. Hence, there is also a dead end. Direct military confrontation with Russia is impossible , and Germany is no longer the one that was under Hitler. China from Russia, too, got what he wanted - hydrocarbons and market their products, so incite China to Russia (as it was in the past - on the border conflict the Sino-Soviet invasion and double KNLA Vietnam - Soviet sphere of influence) has not received any. So that Russia is no longer at war with anyone. 

Is that ... Ukraine ? Well, this is just a misunderstanding of some sort. Seriously believe that America will achieve anything from Putin after the defeat of the APU in the New Russia, and complete Ukraine's dependence on Russia as a source of fuel for energy (including nuclear), and industry and market for Ukrainian goods ... There is no longer any reason to believe that America in the Ukraine can still give Russia a rematch. 

Ukraine - is a dead end for the US concrete! Complexity still remain, but their team razrulit Putin does not take much - in the near or foreseeable future. Combining the US and Europe in trade union. This is also the American Wishlist mechtalki and that have no economic justification. Europe is not going to join their market to the United States because it is a means for her transformation into a large Romania. 

A Russian and EAEC can give Europe what she so today is not enough - political sovereignty and economic development to the east. Merkel and can be a couple of dozen European politicians to break through the knee. But European economic elites in Europe have far greater impact than all the combined American puppet. So in this direction for America, too deadlock. 

But here it is necessary to make one very important point. The fact that America is preparing itself to Europe, its historic ally, to be eaten, says that the hegemon already feels his end. 

Pikul is a wonderful novel "Honour", an extract from which I would like to end this post: 

"Trouble waiting for me at home. As soon as I opened the door of my apartment, I was immediately enveloped in such a disgusting stench that I could not help thinking about the worst. From room to room buzzing squadron worn excessively fattened flies. 

Beware, though criminologist, who arrived on the scene, I walked on tiptoe the whole apartment. Thick dust on the floor and furniture does not store any traces. Finally I turned on the electric light in the bathroom ... and was horrified! In deep bath tank sat a giant red rat, and the bottom bath was completely inundated with rat gnawed bones ribs and skulls. Immediately strewn set of scale-like rat tails, something similar to the length of the spring, which ignored the rat, quite well-fed. 

For a moment I did not move, taken aback, and stared - that this krysischu devour his fellow, then the quiet trickle of water from the tap, I purposely did not twisted to the end. Rat Monster, already bald old age, intently stared at me from the bottom of the bath with some lyuteyshey hatred. After a long life in the darkness of her eyes swam from pus, and from the mouth of acute, finely and nasty snapping teeth, stuck out two yellow fangs. 

From the hallway suddenly began ringing phone. Phone screamed. He was calling, calling. But now I was not talking to ... Trembling from the unbearable stench, I slowly unbuttoned his holster, and he was thinking. And - realized it was not just a rat, what a lot of the trash, and rat-aristocrat. In the rat kingdom, as well as in human society, too big social differences between individuals. 

Rats are divided into patricians, commands, and plebeians, unquestioningly obey them. Discipline is fierce! Just one glance rat aristocrat causes cardiac rupture in the rat-plebeian. Clear and rat origin landfill remains - the plebs themselves climbed into the tub, surrendering meekly to be eaten to their queen was full ... Phone heart-rending and hysterically called me to him! I cocked the hammer on the revolver, and he quietly snapped ... A huge snake suddenly thrashed inside the tank. God, what a squeak ... oh, what squealing! Shot I almost did not hear ... " pin


Putin Decides to Donate 50,000 Tons of Russia’s Coal Daily to Ukraine for Heat

Russian President Vladimir Putin, center, looks back at US President Barack Obama, left, as they arrive with Chinese President Xi Jinping, right, at the the Asia-Pacific Economic Cooperation (APEC) Summit.(Credit: AP/Pablo Martinez Monsivais)
Putin Decides to Donate 50,000 Tons of Russia’s Coal Daily to Ukraine for Heat

Eric Zuesse

On Saturday, December 27th, Russian President Vladimir Putindecided that though Ukraine cannot now pay for coal and will soon go bankrupt, so that any ‘sale’ of coal to Ukraine will be a donation, Russia will nonetheless supply 50,000 tons of coal per day to Ukraine in order to help them through the winter. The official announcement said that “this is a demonstration of good will of President Vladimir Putin to provide real support for the Ukrainian people.”

In a bill that had passed both houses of the U.S. Congress, with more than 98% support from members of both houses, and which U.S. President Barack Obama then signed into law on December 18th, the United States has made available to the Ukrainian Government the possibility of up to $450 million to aid its war against the residents in Ukraine’s far-eastern region, Donbass. The Ukrainian Government iskilling the residents there because the vast majority of them don’t recognize the legitimacy of the U.S. coup on 22 February 2014 that overthrew Ukrainian President Viktor Yanukovych, for whom the people in that now-rebelling region had voted 90%. Obama has said that this military aid will not immediately be supplied, and that he will hold this expense and threat in abeyance for the time being.

So, the Ukrainian Government either is, or will be, receiving donations, or possible donations, from the taxpayers in both the United States and Russia.

An earlier announcement from Russia’s Deputy Prime Minister, Dmitry Kozak, said that Russia would supply Ukraine with “up to a total of 1 million tons of coal per month, … to remove energy problems that arise in that country.” President Putin has decided instead on 1.5 million tons per month. He did this despite Russia’s own economic hardships from the Obama-imposed economic sanctions against Russia, and from the Saudis’ agreement with U.S. Secretary of State John Kerry in September to flood the global markets with oil in order to drive down oil prices enough to hurt Russia, which both the U.S. and Saudi aristocracies want to destroy. Russia, Saudi Arabia, and the U.S. are all major exporters of oil and gas. The Saudi and American aristocracies want to control the aristocrats in Russia, who are currently controlled by Russia’s President Putin, whom U.S. and Saudi aristocrats want to replace.

Putin seems to be saying that the Americans and the Saudis will not dictate his policies, and that he is more interested in ameliorating the extreme hardships that are being suffered by the victims of Obama’s February coup in Ukraine. Perhaps this response from Putin will anger Obama even more, but what can Obama do about it?

Probably, things are not playing out in the way that things had been gamed out inside the U.S. White House at the time when theUkrainian coup was being planned by President Obama, Vice President Joe Biden, Secretary of State John Kerry, CIA Director John Brennan, and the other Obama advisors. However, only future historians will be able to write about that; no reporter today can.


Investigative historian Eric Zuesse is the author, most recently, of They’re Not Even Close: The Democratic vs. Republican Economic Records, 1910-2010, and of CHRIST’S VENTRILOQUISTS: The Event that Created Christianity.

New details of Malaysian #MH17 "Boeing" But Western Media in "Silence Mode"

Very uncomfortable sensation 

December 28, 2014
Dmitry Steshin
New details of the death of Malaysian "Boeing" But Western media have switched into the "painful silence mode." On the one hand, it has not calmed down from the furious screams echoing about the "fair investigation" of this disaster. On the other, voiced this truth was so uncomfortable that in the underground "world headquarters free media," someone on duty on the planet, quickly threw the switch to "Off." And hundreds of Western correspondents frozen in bizarre poses.
The first is the phenomenon of "free media handling free West" noted political analyst Sergei Kara-Murza. In the late 80s we loved scary in the US and Europe. Sometimes it was awkward - after all the "evil empire" and to us excites dirt - and with a flourish with slavering kiss, and a pack of gum in his pocket - a keepsake. Then Western colleagues gladly and enthusiastically wrote about Russia, the different culture and the whole government was invited to visit and drove themselves. 

But in winter '92, when it became clear that the Soviet Union was no longer to be restored, it cutout threw almost to the end, and the outgoing weak flow of information put a filter that cuts off all but the words: "shuttle-racket-prostitution". Later, in 1995, in the filter nakovyryat additional holes, added the words beacons - "Chechnya-feds-rebels". Immediately after that, do not want to smoke more! 

The unique technique World-famous plastic surgery The most interesting findings in the stomachs of sharks And has since become a tradition - working switch and changing the filters, you can sculpt any need at the moment the image of Russia. For example - the day before the world comes in horror from the "Russian military in Chechnya", and yesterday have wept over the "Martyrdom of sailors from the" Kursk ".

 I personally watched as April 30 this uncharitable 2014, in the only hotel of the city Slavianska "Ukraine" all the rooms were taken by journalists a month in advance, and on May 1 begins a mass exodus of the Western press. They hide their eyes, and the words "authorities withdrew" - leave. After one day, will begin the first assault on the city. We do not anticipate, and their writers assault, it turns out, have warned. 

From Kiev? Or directly from Washington? Then, colleagues as well shyly returned back to a referendum in the Donbass - look for violations. But in early June, for some reason we did not find Slavyansk no Western journalist. Already started shelling the city on the areas every day ordinary civilians were killed - a peaceful and pacifist Western press gone somewhere. They were not interested in shooting torn to pieces citizens. 

Although death "mirnyaka" from the clutches of "warlords" and their faithful piece of bread, which was mined in Grozny, that in Aleppo or Misrata. But here and "mirnyak" was not the same, and "military" was friendly. And you can not bring friends, even if they are shot down "Boeing". American and European journalists as if on cue to shut up without risking to give even a squeak about the sensation about the Ukrainian pilot who, apparently, and shmalnul on passenger liners of the Donbas. And this amazing discipline (all toe the line! Not a step to the side!), Mobilization of "free media free West" our eyes to a new level of censorship, whose name - Information warfare. 

Monday, December 1, 2014

Mayor of Kharkov rebelled: "Putin - not the aggressor!"

Mayor of Kharkov rebelled: "Putin - not the aggressor!"

November 27, 2014

Mayor of Kharkov Kernes: "... Today, I clearly understand that the last attempt on my life made ​​by people who have a clear position that was not Mayor Gennady Kernes in Kharkov, and the other was the mayor ... The names of these people - it Arsen Avakov, I think that without the involvement of some of our governor Balut ...

I think Putin's quite effective, energetic, productive person ... Read it, as you say, I will not be the aggressor. And I say this openly ... What now requires Russia to stop the war, stop the deaths of innocent people, I support these are ".

The full interview:

- Mr. Kernes how is your health? You recently had another surgery. It seems the two?

- Health satisfactory. I was operated on twice, because the doctors who accompany me constantly, decided to operate twice. This must be done to me as a result after the operation, had a more comfortable environment for living. And I will say this, I am very pleased that I was operated on twice, because I myself feel differently.

- Perhaps there is already a little sensation in the legs?

- When I was injured, and woke up in Israel, you operated on me there a few times.Total operations was, I think, seven. To date, they have probably nine. Because these operations are different from each other. And all that was done by doctors today, was aimed at the fact that I felt his feet, and was a process aimed at rehabilitation, in order that I may soon walk.

- That is, we can say that now there is a feeling in the legs, right?

- So I can say that I feel comfortable enough and I believe in what I'm going to walk.

- A person, when there are such terrible life events are likely to make change some priorities in life, I somehow spiritual state, life views. How do you feel now lives? What has changed?

- I can say unequivocally that I know the value of life. I can say that health - is the most important thing in life. Necessary to protect their health and, of course, to see a doctor in a timely manner. If you do not know anything about your health, I think that in the future this may lead to some problems.

By spirituality, I can say that I have identified for the following areas. Now I'm helping those people who are in the same situation as I am. Including I helped two boys - one of the "Golden Eagle", the other with "Alpha", who have been injured, and so, as I am partially paralyzed. And for me it is very important that these people lived. After all, we have only one life, and it is beautiful. So they say. Therefore, this I have today a spiritual setting. In general, I reviewed a lot. One program is not enough to tell.

- Your friend Mikhail Dobkin, when there was this attempt, said that for the rest of your life, you were 12 attempts. They are, as some experts suggest could relate to both business interests, as some criminal showdown, and now the political component. Many enemies?

- I have a feeling that if I will remember all my life and destiny, if someone had told me that let's start all over again, I, of course, part of his life reviewed, but in terms of my perception, I can tell so today I clearly understand that the last attempt on my life made ​​by people who have a clear position that was not Mayor Gennady Kernes in Kharkov, and the other was the mayor. Because they, as a bonus, the free mayoral seat, and they certainly would have done everything to go to this office. The names of these people - it Arsen Avakov, I do not think that without the participation of some of our governor Balut.

I believe in the casket "Facebook", which was broken, which was their correspondence. To date, I can state as a fact that the investigation is carried out - it is an imitation, not a consequence. There is the whole thing, so much time has passed already - since May, and already July, and in the process. And I can not even understand that today has been done in this case.

- We were told that all the same a few days ago you met with investigators.

- They interviewed me as a victim, in terms of procedural law. Nothing more. I told them who I suspect there Avakova and called Balut.

- So you said it so clearly surname - Avakov? So Much?

- I still call it.

- It's me. And I mean that the investigator.

- And investigators as well.

- Kernes and Avakov. It has long been known that this conflict continues. You could just say, what is the reason? Why do so among you "black cat ran"?

- It's not that between us, "ran a black cat." The fact that this man is a cynical, bloodthirsty. Today I can say is that, you know, I had won the election, and he did not want to believe it. He created such a background, it's fake.

But we can not speak of falsification, since today is his level of rejection people in Kharkiv - 75-80%. There are people who do not trust him. Even in this respect, he is currently the minister of the interior, such as the first person in the Ministry of Interior, and then he again people today do not trust, including employees of the Interior Ministry. And this he said that part of the Ministry of Interior was released and so on.

But if you talk about the price of life, then it is not worth anything today because the investigation back in the direction in which you want, it is enough to power.

- Mr. Kernes, but you also do not go, they say, "a good man". With you and Mikhail Dobkin linked some closing bank "Basis", the closure of the opposition channel ("ATH", "Handicap", "A / TEC") and so on.

- If you unscrew time ago, the bank "Basis" was closed because Arsen Avakov brought the money from the bank for themselves. We know that the magazine "Focus" estimated his fortune at almost $ 400 million.

On TV, we also know that between the owners, ie the shareholders of these channels is still under economic dispute. If we now look at this process, today Arsen Avakov representatives working in the regional state administration, are doing everything to return the property, which was returned to the municipal property, including summer camps, and other properties.

Today, the prosecutor's office, when I was a prosecutor's office, in the interests of territorial community has contributed a resolution - their views on the matter, and today the prosecutor's office makes - their ideas. When procedural expired. I can give you only one thing to say that this is an example of corruption specifically, when the authority, that is, the Interior Minister Arsen Avakov and his team are doing what is called "corruption". Here is a prime example. And I can prove it not only in words but also documents.

But who today is it necessary? Today, it is no use to anyone. Because today we are working with respect to discredit me. I do not take it at all. I do not see him, I did not hear, I do not know him.

- I want to still go back to the assassination.

After the assassination attempt on you people (and had to communicate in a taxi, and social networks have seen what they write) surprised that you went for a run on a working day. Usually you do morning exercise. Why does the 12th were jogging?

- I have never violated the schedule of the day. How Come? Because I work until 12 o'clock at night, and even later. So I did as I, for example, it is convenient. So I think that if there is any question to me on this, I will answer them. Do not even want to think about is that I broke something.

- It has become known that the machines on which you were driving, were installed DVRs. Were able to detect these devices some of the attackers? These data were transferred to law enforcement agencies?

- There is a record from the DVR oncoming car, which was traveling. Today, law enforcement agencies are working with these materials. I saw this video, I fell like I was trying to get up. I just do not remember it. And I looked, how it all happened. But who, where, why, why - the case of law enforcement agencies today.

- But there are clearly people can not see?

- No. For today (I say again) this case is being investigated as an imitation.

With regard to the European Court of Justice, I will consult with their lawyers and lawyers, because we have a clear understanding of the processes. You forget that I still regard the criminal proceedings.

- By the way, you have completely removed the house arrest?

- I replaced a preventive measure - under house arrest instead I bailed MP. There I had no house arrest. To date, there is the investigator's decision to suspend the investigation due to my illness. You understand disease disease, but the evidence evidence. So I clearly understand that in this criminal case there is no evidence.

- But there is a serious article. There's torture, and intentionally content, and still something.

- All this up deliberately and specifically to me tied to a specific process that then I was completely discredited. So I do not want to talk about it. I can definitely say that no evidence today after it was initiated a criminal case, no.

And these words, which I was talking that this case has been opened, tampered Avakov Arsen Borisovich and people who are affiliated with it, then I clear evidence that those people today who testify against me, clearly subordinate to Arsen Avakov and have a it is not only business, but also financially.

- You are still associated with the so-called titushkamy, Fight Club, who were involved in the fight against evromaydanivtsiv. And as I understand it in this criminal case also spoke of this.

- All the people who came to squares of various kinds, with different moods and objectives, whether it Metalist fans, whether it is sporty people, I would not want you to give them praise. How Come? Yes, because we can not contact you to assess people who have their own citizenship. And call them ... I can not say that - you know who came up with here are the nicknames Well, I believe that it is not necessary at all to hang Because the size of the head is different for everyone.

- And with Evgeny Zhilin (owner of fight club "Hold" - Ed.) Men who were involved in the persecution of activists Evromaydanu) that you had a relationship?

- I know who it is, because we live in the same city. This man once brought to criminal liability for ....

- He was involved in the assassination attempt against one of you?

- Yes, in particular. Therefore, we do not need him much to communicate. How Come? Yes, because I know a lot of people, but it does not mean that I have with them friendly or specific business relationships.

- You are completely excluded in the attempted Russian trace, what they talked about the police? They justify this version that you have joined the unified Ukraine and the fact that Kharkiv to be a part of Ukraine, and not some ordinary federation.

- I can only state the fact that what I said and what I did, to Kharkiv remained safe and comfortable. And the fact that today in Kharkov plant flowers, watering trees, and are not engaged in dismantling the destroyed buildings and barricades that today home repairs Planning, is the fact that we are all together with the residents of Kharkiv reached. So I think that when you're asking me about the so-called "Russian trace", then I do not even want to talk about the Russian track, because I can not understand why you need it.

- Revenge, for example.

- Well, no Kernes, Kharkov but did not as pro-Russian. Well, no Kernes - what next?

I met with the leaders of the pro-Russian public organizations. I constantly communicate with them. I spoke with them and told them that there is no possibility at present, when the requirements were a referendum when there were other requirements, that is, I had contact with them, because they, too, need to hear. In this regard, I can say that those meetings that were before my injury, they also brought its own particular benefit.

- We see a lot on your desk phone and mobile phone you have. Or heard in March, April, calls insistence, they say, Gennady consent to the creation of the "People's Republic of Kharkov" ("HNR") or something like that?

- I was said to be so concrete fact, when the mayor's office came a group of people. It was 300-400 people, and I asked the one who controls them today, their leader, held a talk. So, went one man, whose name was ...

- Konstantin Dolgov. So Much?

- Law enforcement authorities arrested April 19 Dolgov (coordinator shares "Russian Spring" in Kharkov - Ed.), Suspected of intentional destruction of ATMs in Kharkiv, and he is suspected of illegal possession of weapons. Subsequently released on bail Oleg Tsarev, Konstantin Dolgov fled to the Crimea by Ukrainian law enforcement agencies. "

And Konstantin Dolgov then pulled up. And before that was either Arthur or Artem. In short, there was a guy. I asked what you want, here you come to the town hall? He says: let's you open the session hall, we will create a session and "Kharkov republic."To which I replied, that he had gone away, and he knew where. That's all.

So I've always said that no sessions in the process and in the direction of creating a "Kharkov republic" will not. All. Point.

- What connects you with Igor Kolomoisky? This friendship, this record that circulated on the Internet, listening to them, it seems that he has a great influence you and link it Kolomoiskiy that you have dramatically changed their geopolitical vector substantially and vector Kharkov?

- As for my position, I changed the vector, then I can say one thing that I clearly understand what is happening and what needs to be done to the head of my rank. So I clearly did everything in order to save and preserve the Kharkiv Kharkiv achievements that we have. This is the first one.

What concerns my relationship with Kolomoisky, I know Ihor Kolomoyskyi, I'm with him I can talk on the phone, I can meet him, we can with him to discuss any topic. But I can say that I am an independent and self-sufficient person.

- What are some common business processes?

- I said no.

- You have mentioned that in evromaydanivskih circles continue to bind the activation of pro-Russian forces. Do you think it's normal that people continue to stand near the monument to Lenin, to collect funds to support the pro-Russian so-called "militia"?

- I think that today we can not forbid people under the current legislation to raise money in one way or another, we call such coordinate system. Because, if we prohibit it, it turns out that we limit the rights and freedoms of the people.

- I am in favor of peaceful assembly, I for compliance with the law of liberty. But when it comes to funding militants, I think there need to be attentive to these meetings because we are now reaping the consequences of these.

You talk to me before our paper showing where it comes to using, for example, Slavic. Work there maystriz Kharkiv city services. How to be here with this?

- I think every man for himself chose his path. Let everyone is responsible for their actions. In another will not. If today people decided on their views on life, they will be held accountable for their actions.

- Do you think Putin aggressor?

- I think Putin's quite effective, vigorous, productive person. But what concerns the fact that he - the president of Russia, I think that the Russians are choosing Putin entrusted him to manage a country like Russia. Maybe he deserves respect from the point of view that he has the support of Russians today. Millions, tens and hundreds of millions of people. So take it, as you say, I will not be the aggressor. And talk about it openly.

- Then what we will refer to the facts when the weapon you done with the Russian side, where there is satellite images showing the presence of militants from the Russian side, where even now there are facts that, in the churning Malaysian aircraft also involved in military installations it with the Russian side? We are not saying that Putin - the aggressor?

- I do not want you to discuss this topic, because I'm not a military or a police officer and you are not a military or a police officer. I can only say that I do not approve of such events today, as the opposition, you know, brother against brother, against each other. I'm against it. I am against the fact that civilians are dying today. I am against what is now destroyed our cities and towns. I'm against it. How Come? Because the price of the issue - people's lives. This is the only priceless, that today is.

You talked about the Malaysian aircraft, so I think that the tragedy, and we offer them our condolences, which today is. And, of course, all stakeholders need to understand why this tragedy occurred. Again Kharkov in demand here because of all the relatives, and there are about 400, have come here to the city of Kharkov. And now here we are preparing for the arrival of this.

As for the plants, then you know that I am now more interested in human relations than the installation. Have an interest in military installations. In this regard, today the money that goes into this war, should give appropriate effect and result. Therefore, let the report about the opposition, in terms of weapons, from the point of view, as you say, these data, the military, which today received full powers to participate in the ATO.

The fact that today require Russia to stop the war, stop the deaths of innocent people, then I support it. How Come? Because I believe that today an opportunity to find a compromise on issues related to people's lives. And defend the interests of Ukrainian territories? I am for the Ukrainian territory. And Lugansk - it is Ukraine.

- There remains the possibility that the Kharkov can become a territory where will these so-called ...?

- I do not exclude such events, when there will be some point events associated with some diversions. Maybe so. But mostly it again should be a joint work of all branches of government.

And with regard to Kharkov, then I'm pretty sure that Kharkiv Kharkiv remains, and we will do everything in order to revive the greatness of our dear and beloved Kharkiv. I think so.

I do not think it's right, when monuments pour paint when painting the monuments of different words when they reflect the hands of the monument just break. I do not think that when people are going to Evromaydani give some estimates and characteristics of people, this is correct. How Come? Because it can hurt or to call, and then restore the relationship is very difficult.

So I think that today we should be more tolerant in their choice and in their words and in their actions, including in Kharkov, which is, as you rightly said, and Euromaidan, and the forces that are going to have Lenin monument. There should be tolerant, normal operation between such people. And while we have (thank God!) Everything works.

- A little over a year left before your tenure mayor of Kharkiv. You will continue to run for a second term?

- Let us live to see it. Because you know that I am still alive thanks to God, thanks to the doctors, thanks to a friend of his wife. I believe that this time will come. And when he comes - we'll see.

Today I can say that I'm at work (here you can see for yourself) in the workplace. And I will do everything to ensure that people do not notice my present limitations. Let's call it so.