Europe Must Learn To Cheat On Its Sanctions (Just Like The U.S. Is Doing It)

April 1, 2022

The European Union and China will hold a virtual summit today. Before the summit started Brussels has strewn rumors that it would pressure China to not support Russia.

China is of course rejecting any pressure and retaliates by pointing out Europe's weak strategic autonomy:

Hours before the China-EU leaders' meetings on Friday, Chinese analysts warned that China-EU relations cannot be kidnapped by the Ukraine crisis, and Europe should no longer be abducted by the US in foreign policy, as it will greatly undermine the EU's own interests, making it difficult to ensure economic recovery and people's livelihood, and runs counter to Europe's aim of pursuing strategic independence.
…
As the Russia-Ukraine conflict stretches to over a month, Europe has sustained great pressure resulting from sanctions against Russia and its over-reliance on US-led NATO security structure.

"The EU is now kidnapped by the US on security, but that does not conform to the strategic independence EU has pursued," [Cui Hongjian, director of the Department of European Studies at the China Institute of International Studies] said.

To avoid being caught in hot water again, the EU must take control of its own destiny. And developing ties with China provides the EU an opportunity to develop in a more balanced and comprehensive way in the long term, he said.

Its reliance on the U.S./NATO is Europe's core strategic weakness. The U.S. has used it to infiltrate Europe's decision making structures.

When the current Ukraine crisis began the U.S. announced that it had activated certain sanctions against Russia and told Europe to do the same. Europe then decide to deliver even more sanctions than it was told to do. With that done the U.S. has quietly buried or circumvented some of its own sanctions after it had used them to push the Europeans.

On March 8 the White House announced:

Today, President Biden will sign an Executive Order (E.O.) to ban the import of Russian oil, liquefied natural gas, and coal to the United States – a significant action with widespread bipartisan support that will further deprive President Putin of the economic resources he uses to continue his needless war of choice.

The United States made this decision in close consultation with our Allies and partners around the world, as well as Members of Congress of both parties.
…
Today’s Executive Order bans:

The importation into the United States of Russian crude oil and certain petroleum products, liquefied natural gas, and coal. Last year, the U.S. imported nearly 700,000 barrels per day of crude oil and refined petroleum products from Russia and this step will deprive Russia of billions of dollars in revenues from U.S. drivers and consumers annually. …

The Executive Order is here and it does seem to prohibit crude oil imports from Russia.

However, three weeks later the U.S. is still importing Russian crude oil. The U.S. Energy Information Administration publishes a weekly list of crude imports by country:

bigger

In the week ending March 26 the U.S. still imported 100,000 barrels per day of Russian crude oil.

I explained on March 7 why the U.S. needs the Russian oil:

Some U.S. refineries at the south coast are designed to only process heavy oil variants. Since 2019 the U.S. has blockaded heavy oil imports from Venezuela and replaced them with imports of heavy Ural variants from Russia. It has now send two officials to Caracas to try to get Venezuela's oil flowing again. That would of course require to lift all sanctions off Venezuela and to return all confiscated companies and the gold that is owned by that country. It is not going to happen anytime soon.

Diesel and heating oil consist of long hydrocarbon chains. Lighter types of crude oil lack these. There are ways to create longer hydrocarbon chains from shorter ones but those processes are expensive. It is much easier to start off with heavy crude oil and to break it down when needed.

Without heavy Russian Ural crude oil the U.S. has no efficient way to create diesel and heating oil. This while we are in a global diesel crisis:

Diesel is what freight transport uses to deliver goods to consumers, but it is also what industrial transport uses for fuel. With Russian refiners cutting their processing rates in the wake of several waves of Western sanctions, already tight diesel supply is going to get a lot tighter.

"Governments have a very clear understanding that there is a clear link between diesel and GDP, because almost everything that goes into and out of a factory goes using diesel," the director general of Fuels Europe, part of the European Petroleum Refiners Association, told Reuters this week.

As Vitol's Russell Hardy noted earlier this week, "Europe imports about half of its diesel from Russia and about half of its diesel from the Middle East. That systemic shortfall of diesel is there."

Europe is not the only one feeling the diesel pinch, however. Middle distillate stocks are on a decline in the United States, too, Reuters' John Kemp wrote in his latest column.

The Biden administration announced yesterday that it would release 1 million barrels of crude oil per day from the U.S. Strategic Petroleum Reserve (SPR). While this voter bribe will likely lower elevated gasoline prices it is doubtful that the SPR includes enough heavy crude to make a difference in the diesel market.

It is diesel, more than gasoline, that is driving inflation.

The U.S. is therefore likely to continue to cheat on its own sanctions. Europe should recognize that and should likewise handle its sanction in a matter that lessens the economic effects on itself. It will otherwise ruin its citizens.

It should also handle its relation with China, its largest trading partner, aside from the U.S. and the Ukraine-Russia mess up. Not doing so only increases the size of the recession it is soon likely to experience.

Posted by b on April 1, 2022 at 15:57 UTC | Permalink

Comments

@bevin | Apr 1 2022 19:11 utc | 86
Absolutely stunning, and laser-sharp. Thank you.
“The central reality in all our lives is that the Permanent Arms economy, with its concomitant permanent security/secret police state, lowers living standards everywhere in a dramatic fashion.”
Building socialism, as so many socialists term it, is building the abundance that Lenin described in *The State and Revolution*, Ch. 5, as “The Economic Basis of the Withering Away of the State”. Capitalism’s wars against the USSR and other socialist countries have been directly aimed at destroying what socialist construction achieves, but even in “peacetime” capitalism’s profit-driven arms races have sabotaged the building of socialism in the colonized and neocolonized countries. Under socialist leadership they’ve successfully reclaimed their sovereignty but had to siphon off huge amounts of human and other resources from socialist construction to defend that sovereignty. The Permanent Arms economy creates poverty, and poverty is antithetical to socialist construction—most especially in countries just emerging from decades or even centuries of colonial exploitation and oppression.
The USSR realized huge advances and victories over its 74 years—achievements on which modern Russia builds—but was in the end defeated by this very arms race-induced scarcity: with the advantage of the dollar’s Global Reserve Currency status the US simply spent the Soviets under the table. But the USSR contested this global class conflict long enough to pass the baton to China.
As Lenin noted in his *Imperialism: the Highest Stage of Capitalism*, Western industrial capitalism was taken over by finance capitalism. In the modern period this has mutated into neoliberalism with its nightmare of neo-Dickensian debt-feudal techno-fascism. Michael Hudson has recently described the current struggle in Accidental Crisis?:
“…that there’s going to be a new grouping of international organizations, of which the United States will not join because it won’t join any organization that it does not have veto power in. So you’re going to have to parallel paths. You’ll have a neoliberal financialized, debt-financed path in Europe and North America, and you’ll have an industrial capitalism evolving into socialism path in China and the Belt and Road Initiative, Shanghai Cooperation Organization Block….
“Neoliberalism impoverishes. Neoliberalism is a class war against labour by finance, primarily, and a class war against industry. A class war against governments. It’s the financial class really against the whole rest of society seeking to use debt leverage to control companies, countries, families and individuals by debt.”
China, realizing the limitations of the Soviet experience, instead raised its “Socialism with Chinese Characteristics”, its socialist state apparatus and central planning ensuring that industrial capitalism stuck to its historical role: developing the means of production and building both an industrial proletariat, real world economic abundance and technological development. The “capitalist road” appeared to be a historical retreat that dismayed and demoralized countless Western leftists, but instead was the kind of retreat that like the Long March laid the basis for strategic victory.
As “class-maskirovka” it also fooled Western capitalists and politicians, who thought Chinese socialism would fall just as the Soviets had. The Trump White House stated:
“We could not have been more wrong—and this miscalculation is the greatest failure of American foreign policy since the 1930s. How did we make such a mistake? How did we fail to understand the nature of the Chinese Communist Party?….
“The answer is simply: because we did not pay heed to the CCP’s ideology. Instead of listening to what CCP leaders were saying and reading what they wrote in their key documents, we closed our ears and our eyes. We believed what we wanted to believe—that the Party members were communist in name only.”
(NB: this statement, at
https://www.whitehouse.gov/briefings-statements/chinese-communist-partys-ideology-global-ambitions/?fbclid=IwAR1NuIQ3aLEdZS93CueK4Pe2Nl6ezGQNoT9-_vA3lnu-mA0kZR6Sbc5kuvQ
became 404 Page Not Found very soon after Biden took office)
When I was young my father, who worked for RAND Corp., told me the US’s worst nightmare was “an alliance between Soviet Russia and Red China”. How ironic that 25 years after he passed this worst nightmare is coming true, but between post-Soviet capitalist Russia and “capitalist roader” China.
Marx and Engles were famous for their “Workers of the world, unite!” The Russian Revolution updated this to “Workers and oppressed peoples of the world, unite!” As foreign relations rise out of domestic relations, after a full century China, first within and now without, is taking this global with the New Silk Road. Together with Russia China is creating the material basis for a global class uprising of both workers and oppressed. First it will manifest in the form of national sovereignty throughout Asia, Africa and Latin America, but this is sure to create new social realities *within* nations—global economic guerrilla class war, with the periphery surrounding the metropoles. This will go far beyond what capitalism as a world system can accommodate; this will reestablish the basis for global class struggle and revolution.
What will the “West”—the collective Anglo-Euro-Japanese imperialists—do without colonies and neocolonies to exploit? Just as the dollar they will implode upon their long-exported contradictions come back home to roost. It will at first be crushingly hard on the peoples of these countries, but sure as consciousness must be based on material reality we will see a resurgence of class struggle here that will sweep aside all McCarthyist, COINTELPRO and fascist legacies, and create the basis for the 13%—or at least the 12% who work for a living—to rejoin the 87% and constitute for the first time a truly global human movement. As Russia is presently using the West’s assumed strengths against it in stunning martial arts-like counterblows, China is doing the same, countering the West’s Mackinderian geostrategies with Global People’s War and Deep Class War.
Just as Lenin characterized the socialist revolution as “winning the battle of democracy”, we will see internationalism rise as well, winning the battle of international law. Socialism with Chinese characteristics will become socialism with characteristics of self-determination. At length humanity will finally be able to address the climate crisis without billionaires and their corporate and political lackeys sabotaging our every move—we can only hope soon enough. Before she was assassinated 100 years ago Rosa Luxemburg described the choice before humanity as “socialism or barbarism”—now we might say “socialism or extinction”. This is humanity’s path not just to survival, but to liberation.

Posted by: Vintage Red | Apr 2 2022 7:48 utc | 201

Yup.

Posted by: Laurence | Apr 2 2022 7:51 utc | 202

Posted by: Boo | Apr 1 2022 16:08 utc | 2
I am curious how the Gasprom bank can open a euro account (K) without cooperation with a euro zone bank. Is the payment delivered by truck in paper notes?

Posted by: RJB | Apr 2 2022 8:20 utc | 203

Briefing by Igor Konashenkov, Russian Defense Ministry spokesman, as of 10 a.m. on April 2, 2022
▪️ Units of the armed forces of the Donetsk People’s Republic have captured most of NOVOBAKHMUTOVKA and are fighting retreating units of the Ukrainian 25th Separate Airborne Brigade. Up to 40 nationalists, a tank platoon and two motorized infantry platoons, as well as a mortar battery, were destroyed overnight in the area.
▪️ High-precision, long-range airborne and sea-based weapons destroyed the gasoline and diesel fuel storages of the Kremenchuk oil refinery this morning, from which the Ukrainian group of troops in the central and eastern regions of the country were supplied.
▪ High-precision airborne missiles knocked out military airfields in POLTAVA and DNEPROPETROVSK.
Two Ukrainian Mi-24 helicopters were shot down by Russian anti-aircraft defenses near the town of Sumy and the village of Urozhaynoye. Twenty-four Ukrainian unmanned aerial vehicles were also destroyed in the air.
▪️ During the night, the Russian Air Force’s tactical aviation and missile forces hit 67 Ukrainian military targets.
▪ These included two command and control posts, two rocket and artillery weapons and ammunition depots, nine field artillery and mortar guns, and 54 areas where AFU combat equipment was concentrated.
A total of 124 aircraft and 84 helicopters, 381 unmanned aerial vehicles, 1,882 tanks and other armored combat vehicles, 203 multiple rocket launchers, 786 pieces of field artillery and mortars, and 1,764 pieces of special military vehicle equipment have been destroyed since the start of the special military operation.

Posted by: sitrep | Apr 2 2022 8:23 utc | 204

@bevin | Apr 1 2022 19:11 utc | 86
Posted by: Vintage Red | Apr 2 2022 7:48 utc | 200
Thank you both for such concise descriptions of the history and current situation.
What a unique moment in history we are in right now.
Much appreciated as well as so many other insightful posts today. Once I’ve read the comments and the various provided links I am up to date each day and very well informed. What an amazing resource this site is.
Especially thank you B

Posted by: K | Apr 2 2022 8:29 utc | 205

TomD | Apr 2 2022 7:18 utc | 196
Lovely. I needed that this morning.
****
Vintage Red | Apr 2 2022 7:48 utc | 200.
Inspiring.
But the term “workers” as in “The Russian Revolution updated this to “Workers and oppressed peoples of the world, unite!”. Does not fully meet the needs of the moment. The “Class” aspect does it a disservice, as many people self-identify as “middle-class” (in the EU) and with the “winners-elite” in the US, (as in the American dream) rather than “workers/Labour”. Worse, we get back into charged words and ideas such as “Communist” or “Capitalist”. Both of which are over-used and now only serve as a form of rude name calling.
Semantically “Humanitarian vs Elite” might be better. Again, a shorter word should be found to make a good catch phrase.

Posted by: Stonebird | Apr 2 2022 8:31 utc | 206

I’m angry at part of the Saker’s latest opinion, especially now after reading what Oleg Tsarev writes on Telegram, that Petri Krohn | Apr 2 2022 2:46 utc | 179 quoted above. This part in particular, (but it’s all worth reading to understand the following).

I hope that now there will be an understanding of the seriousness of the situation. It seems to me that until now many people did not understand the seriousness of the situation.
Russia has many enemies. Russia wants to be destroyed. Do not weaken, but destroy. There are only two ways out of this war. Either victory or defeat. We will not be allowed to sign peace and get out of the conflict.
We must realize that the events have long gone beyond the scope of a special operation. Now it is a war for Russia.

I really get Tsarev’s post, but not Saker’s comment below.

Today, I want to comment on a topic I did not address yet: the quality of the Ukrainian armed forces.
Over night, two Ukrainian helicopters flying at very low altitude and high speed flew across the Russian Ukrainian border, and in only six minutes of flight time found themselves next to a fuel storage facility near the Russian city of Belgorod. They both fired, one missed, but the second one hit perfectly and the entire fuel storage facility ignited. Not a big deal, the fire has been contained, but very embarrassing nonetheless 🙁
Another case: the night before yesterday a group of 5 Ukrainian helicopters took off from Nikolaev, flew 7 meters above the waves and landed in Mariupol. Their mission was to evacuate the leadership of the Azov force still hiding inside the Azovstal industrial facility. After they took off, two helicopters were shot down, but another three flew away, with a possible 3 helicopter ditching in the waters off the coast (unclear at this time).
Why do I consider these two events very telling?
Because it shows that the Ukrainian soldiers have A LOT of VERY REAL courage. Not only that, in both of these operations, a great deal of careful planning went into the preparations of these missions. So they are not only courageous, they are SMART.

First of all the strike on the Belgorod facility was a petty, foolish, albeit brazen and cunning move that proves nothing, about the character of Ukie forces who use civilians as human shields and slaughter civilians in the Donbass! They are neither smart nor courageous! Let’s not forget why Russia was forced into this operation. Siding with USNATO to destroy Russia is not a sign of courage! I would go as far as stating it’s cowardly treachery. Sure it’s wise to know the enemy’s strengths, but courage is not one of them! Suicidal, like the Japanese in WWII, like terrorists, yes, and devious and reckless.
The 2nd chopper event he mentions, I agree was planned and begs the question: Who helped the Nazis plan it? What intelligence is guiding them? Their own? I doubt it. It also begs this one: Why do the Ukies still have so many choppers?
Saker’s praise for Ukies at this time is totally misplaced and Russia getting caught off guard is inexcusable given the stakes involved. Good thing the Belgorod incident was a minor event. To state that this can never happen again is an understatement.
So yesterday Putin signed an order reinforcing security on Russia’s Western border. Good.
Shouldn’t every t be crossed, every i dotted and strategy be always at a level ten steps ahead of the enemy? Make no mistake, Russia’s enemy is not only the Ukrainian military, but the latter’s benefactor in: training, weaponry, strategy and intelligence; USNATO, even though, thankfully, officially the latter has not entered into or declared war. God help us if they do because we will all be drowned out. So get it right, now. We are an island of sanity besieged by a whirlwind of complete madness.
Logically, I would imagine that a military strategist would consider that every move needs this question: Where am I most vulnerable? I guess that question was not asked in regards to Russia’s border.
So the nobility of Tsarev’s post suppressing hurt for having to move forward from territory not easily conquered for total commitment to the plan, while the enemy reaps the glory of reclaiming it, requires the same level of seriousness from all who believe that Russia is in fact under attack and that honor is dying on the battlefield.
This is War on all fronts, and it’s being waged against and for the truth.

Posted by: Circe | Apr 2 2022 8:39 utc | 207

I hope that now there will be an understanding of the seriousness of the situation. It seems to me that until now many people did not understand the seriousness of the situation.
Russia has many enemies. Russia wants to be destroyed. Do not weaken, but destroy. There are only two ways out of this war. Either victory or defeat. We will not be allowed to sign peace and get out of the conflict.
We must realize that the events have long gone beyond the scope of a special operation. Now it is a war for Russia.

I really get Tsarev’s post, but not Saker’s comment below.

Today, I want to comment on a topic I did not address yet: the quality of the Ukrainian armed forces.
Over night, two Ukrainian helicopters flying at very low altitude and high speed flew across the Russian Ukrainian border, and in only six minutes of flight time found themselves next to a fuel storage facility near the Russian city of Belgorod. They both fired, one missed, but the second one hit perfectly and the entire fuel storage facility ignited. Not a big deal, the fire has been contained, but very embarrassing nonetheless 🙁
Another case: the night before yesterday a group of 5 Ukrainian helicopters took off from Nikolaev, flew 7 meters above the waves and landed in Mariupol. Their mission was to evacuate the leadership of the Azov force still hiding inside the Azovstal industrial facility. After they took off, two helicopters were shot down, but another three flew away, with a possible 3 helicopter ditching in the waters off the coast (unclear at this time).
Why do I consider these two events very telling?
Because it shows that the Ukrainian soldiers have A LOT of VERY REAL courage. Not only that, in both of these operations, a great deal of careful planning went into the preparations of these missions. So they are not only courageous, they are SMART.

Posted by: Circe | Apr 2 2022 8:39 utc | 208

Semantically “Humanitarian vs Elite” might be better. Again, a shorter word should be found to make a good catch phrase.
Posted by: Stonebird | Apr 2 2022 8:31 utc | 205
“Plebes vs Elites”, and you’ll get the attention of the younger generation.

Posted by: bonks | Apr 2 2022 8:41 utc | 209

Posted by: Carl | Apr 1 2022 17:39 utc | 31
Think. How do you “place” dollars or euros in Moscow? By truck?

Posted by: RJB | Apr 2 2022 8:52 utc | 210

Posted by: RJB | Apr 2 2022 8:20 utc | 202
Gazprombank is not sanctioned by USA or Europe for obvious reasons so it can open accounts in whatever currency it chooses – it will simply not park them in counterpart banks but hold them as frozen under its control

Posted by: Paul Greenwood | Apr 2 2022 9:00 utc | 211

I was wondering about the giant Russian mining company Norilsk. They even did nickel and PGE exploration in Australia at one time with some old drill holes and EM data now being reevaluated. Prokhorov is one ‘oligarch’ not sanctioned….
“…In 1992, at the age of 27, Prokhorov partnered with Oligarch Vladimir Potanin to run Interros, a holding company that they used in 1995 to purchase Norilsk Nickel, one of Russia’s largest nickel and palladium mining and smelting companies. During the wild-west, un-regulated privatization of former state-controlled industries after the collapse of the USSR, Prokhorov and Potanin “acquired” the shares of the workers at Norilsk Nickel for a fraction of their market value and seized ownership of the company. When he departed in 2007, Prokhorov’s share of the company was worth $7.5 billion…”
https://www.jewishpress.com/news/global/russia/zionism-today-mikhail-prokhorov-worth-11-4-billion-makes-aliyah/2022/03/27/
Now Prokhorov is free to “acquire” some more stolen property.

Posted by: Paul | Apr 2 2022 9:01 utc | 212

Good morning (or so it is in Montreal) to the bar. I’m sitting in my armchair, with a coffee – perfect time to remark on national defence and military matters. 🙂
For those concerned about North American continental defence… mostly the American part of it, yes?? Recently a new agreement was signed between the Canadian Army and US Army North. There are suggestions of a possible threat from the north, but it wouldn’t be Russia, but it would be someone who could negotiate an arrangement with Russia so that they stay out of it, and allow the aggression to happen? Dealmakers extraordinaire – the UK, perhaps? And friends (which could include France, Gulf monarchies, and more?) or is that my ignorance and Canadian paranoia kicking in.
OK —
https://twitter.com/Army_Comd_Armee/status/1501329035959410693
Canada’s Chief of Defence staff, Gen. Wayne Eyre popped over to NORAD this week.
https://twitter.com/CDS_Canada_CEMD/status/1509933127585697794
And then there’s Mexico and Greenland and Iceland and Japan, just a note.
Speaking of Chiefs of Defence Staffs, the German Inspector general of the armed forces, Gen. Eberhard Zorn said the German command would never send troops to the Ukraine. (This is from Sputnik News’ Live Updates feed)
“The German inspector general of the armed forces, Gen. Eberhard Zorn, confirmed to the Welt daily that the German command would never send troops to Ukraine to respond to the Russian military operation.
“What the federal chancellor and US President Joe Biden said stays true: we will not deploy our own forces in the Ukrainian territory under any circumstances,” the highest-ranking administrative officer said in an interview out Saturday.”
So that’s noteworthy. If you’re Ukraine. I do think for all the legitimate concerns about the US, the military retains some capacity for defence of its territory. Without going nuclear.

Posted by: Bruised Northerner | Apr 2 2022 9:05 utc | 213

This could be an attempt to influence India, when it comes to China, of course its well known that Australia is the USA’s tip of the spear so to speak when it comes to the United States economic war on China, and as most in here are aware of, the sacrificing of Ukrainians to achieve economic superiority with Russia in mind is totally acceptable to Washington.
“Australian Prime Minister Scott Morrison has defended a recently signed trade agreement with India. Morrison said the decision to foster relations with a country that has refused to denounce Russia’s military campaign against Ukraine does not undermine Canberra’s support for Kiev.
The Australia-India Economic Cooperation and Trade Agreement was signed by Australia’s trade minister, Dan Tehan, and India’s minister of commerce and industry, Piyush Goyal, on Saturday afternoon in a virtual ceremony witnessed by the prime ministers of both countries, Morrison and Narendra Modi.
The accord, among other things, cuts tariffs on a range of Australian exports to India, including coal, lentils, lobsters, and rare earths. The Morrison government hailed the deal as a significant milestone in diversifying Australia’s export markets and reducing its dependence on China.”

Posted by: Republicofscotland | Apr 2 2022 9:26 utc | 214

Posted by: Paul | Apr 2 2022 9:01 utc | 210
The Family
https://www.youtube.com/watch?v=otm1xrxR9LM

Posted by: Tom_12 | Apr 2 2022 9:27 utc | 215

The woman from the maternity hospital bombing in Mariupol that was on all the Western Mass Media has spoken out.
She gives a lot of detail and nuances, and I recommend watching the video in full.
The TL;DL is:
1) Yes, Ukrainian military was there. Obviously. Which breaches the Geneva convention on hospitals, as well as on human shields.
2) It wasn’t an air strike, it was artillery
3) It wasn’t staged, she got superficial cuts from glass
4) She was the last to leave because military personnel ordered her to stay and wait a little. They also told her that she didn’t need any bandages, because it’d stop bleeding by itself. Infer from that course of events what you will. 😉
5) When she finally got to leave, she was being photographed by military personnel as well as the press. Again: Infer from that what you will.
I got the video from telegram, but uploaded it to youtube for more stable documentary purposes and to safeguard link rot: https://youtu.be/0dEoPWfGzN8
I do not hold the rights to the video content, but no one is likely going to claim the copyright either way. Neither will I.

Posted by: JS | Apr 2 2022 9:31 utc | 216

The USA to supply Russian styled tanks, possibly via another country to Ukrainian forces, apparently the Nazi’s are familiar with Eastern European weaponry and need little training on them.
The question must which country will the tanks come from and which country will allow them to be smuggled into Ukraine, and will Russia see this as an act of war and attack the country, or will Russia strike the weapons in the country or on the border of the country and UKraine.
“Washington will act as an intermediary to help deliver Soviet-made tanks to Ukraine, the New York Times reported on Friday, quoting a customary unnamed US official. Kiev has been pleading with the West to supply it with heavier weapons since the start of the Russian military campaign, in late February.
The source told the paper that the transfers will begin soon, but declined to specify how many tanks will be sent, or which countries they will come from. Ukrainians are generally familiar with the Soviet-era hardware, which would mean they will need less training in its use.
The news comes a week after President Volodymyr Zelensky asked NATO for “one percent” of its tanks and aircraft. Western countries have been shipping anti-tank missiles to Kiev, but Ukrainian officials are saying it is not enough to fend off the Russian troops.
On Friday, Germany approved the transfer of 56 PbV-501 armored combat vehicles to Ukraine. The vehicles, built in the former East Germany, and designed in the 1960s, are currently owned by a Czech company.”

Posted by: Republicofscotland | Apr 2 2022 9:32 utc | 217

@Petri Krohn #166
I don’t think you read what I actually wrote.
The CBR announcement isn’t clear if they are buying gold @ 5000 rubles/troy ounce no matter what – i.e. “bring 1 troy oz of gold to CBR, get 5000 rubles”. If they’re only buying when they want to, or only from specific institutions, then it isn’t even a semi-peg.

Posted by: c1ue | Apr 2 2022 9:36 utc | 218

Posted by: Circe | Apr 2 2022 8:39 utc | 206
I wouldn’t be in a hurry to condemn Russia’s inability to prevent the oil attack. They used helicopters precisely because they can fly “nape of the earth” and avoid border radar. If they’d used jets, Russia would have spotted them and taken them out. As far where they came from, not every square inch of Ukrainian soil is under the direct physical control of Russia, even if areas where Russia has supposedly taken control. We don’t know where these helicopters came from, or how they go to there they could cross the border undetected. So no assumptions can be made. What we can be sure of is that Russia will make every effort to patch any holes in its border defenses.
It’s been a surprise that Ukraine hasn’t at least been able to fire some missiles across the border, at least early on in the invasion. Now all they can is this sort of desperation move. It’s irrelevant to the outcome.
Saker is just doing what Scott Ritter also does: recognize that the Ukrainian military is the second largest in Europe, and has been trained to NATO standards so they are interoperable with NATO forces. So they’re not the Iraqi army. For all we know, those choppers were a CIA spec ops mission, run independently of the Kiev regime. Or as I suggested, a Ukrainian commander ran his own op.
As The Saker says, the outcome is never in doubt. So don’t worry about the occasional screwup or hit taken by the Russians. It’s war. Shit happens.

Posted by: Richard Steven Hack | Apr 2 2022 9:40 utc | 219

Posted by: Republicofscotland | Apr 2 2022 9:32 utc | 215
Mentioned that on the previous page. Thanks for the reference to the ACVs, didn’t know that one.
Of course, they’ll never get into combat. The amazing thing to me is that the EU seems to want to throw away all kinds of military equipment – even if some of it is obsolete and costs to maintain in storage – just for the PR value of appearing to “do something”. Of course, since it’s all done at taxpayer expense, it’s clear the taxpayer gets screwed twice: 1) his tax dollars are wasted, and 2) he’s being lied to about whether it matters. So I guess it’s a win-win for the EU governments.

Posted by: Richard Steven Hack | Apr 2 2022 9:45 utc | 220

Posted by: c1ue | Apr 2 2022 9:36 utc | 216
I think it is fixed at 5000 rubles for 1 GRAM of gold. This makes the dolar to ruble rate around 85 rubles for a dollar, it also sets bottom price of gold at around 1900$. There’s a good article in RT this morning that explains everything.

Posted by: Milos | Apr 2 2022 9:45 utc | 221

@psychohistorian #173
I don’t think you read what I wrote, either.
Is the CBR buying 1 gram of gold for 5000 rubles from anyone, anytime?
If not, it is not a peg. It is simply an announcement of what the CBR will pay for gold, when it wants to buy gold.
The fact that the price of gold atm = $1925.3, divided by 31.1035 (grams per troy oz) and times 5000 = 80.77 – which in turn is 6.15% over the present dollar/ruble exchange rate of 85.75 shows that there is no peg.
If the CBR is not freely converting rubles to gold at 5000/gram, then all it is – is a way to get arbitragers to drive up ruble demand.

Posted by: c1ue | Apr 2 2022 9:52 utc | 222

Richard Steven Hack (218).
Yes Richard I agree with what you’ve said, providing 1960’s Eastern European, now considered obsolete, military equipment to Ukrainian forces won’t change anything except the Western propaganda factor when they are destroyed, maybe Nato is hoping that the weapons are destroyed in another country besides Ukraine, to drag that country into conflict with Russia.

Posted by: Republicofscotland | Apr 2 2022 9:55 utc | 223

Milos (219).
This is an interesting read on where Russia might go with regards to gold and the Ruble.
https://www.rt.com/business/553099-gold-backed-ruble-gamechanger-west/

Posted by: Republicofscotland | Apr 2 2022 9:57 utc | 224

@Opport Knocks #106
You are directionally correct but not really correct.
Growth is growth.
Yes, inflation reduces the purchasing power, but it also reduces costs of labor etc. so it cancels out from a recession/growth perspective (i.e. it is a denominator change to everything.
What matters is inflation vs. interest rates. If you have inflation of 7.5% and an effective Fed funds rate of 0.08% St. Louis Fed graph of historical Fed Funds rate – this is a literally historic negative difference.
And what this means is that it seems highly unlikely we’re going to see an end to inflation, any time soon.

Posted by: c1ue | Apr 2 2022 10:00 utc | 225

@Milos #219
No, the effective dollar/ruble exchange rate for the “peg” (which isn’t a peg unless the CBR is buying from one and all, all the time), at this moment in time where gold is $1925.3/troy oz, is 80.77 rubles to $1 vs. the actual dollar/ruble exchange rate of 85.75 rubles/$1
There is no “floor” price for gold set by this.
The dollar/ruble rate can go up or down, as can the price of gold.
Anyone who wrote about 5000 rubles/gram Au setting a “floor” price for gold in dollars is an idiot.

Posted by: c1ue | Apr 2 2022 10:09 utc | 226

The Family
https://www.youtube.com/watch?v=otm1xrxR9LM
Posted by: Tom_12 | Apr 2 2022 9:27 utc | 213
Well that’s an interesting video on who made Zionism happen. So much for conspiracy “theories” LOL

Posted by: K | Apr 2 2022 10:13 utc | 227

Posted by: Republicofscotland | Apr 2 2022 9:55 utc | 221
Heh, well, if that’s what they hope, they’re gonna be disappointed. Russia isn’t going to fall for that trap, just like it hasn’t fallen for any of the others. There’s no need for Russia to hit any NATO country to deal with this situation, short of NATO crossing the Ukraine border.

Posted by: Richard Steven Hack | Apr 2 2022 10:34 utc | 228

C1ue #223
Gold-backed ruble could be a gamechanger (INTERVIEW)
Linking the currency to gold and energy is a paradigm shift for the global economy, a precious metals analyst tells RT
Gold-backed ruble could be a gamechanger (INTERVIEW)
© Sputnik / Vladimir Astapkovich
The Bank of Russia has resumed gold purchases this week, but more importantly, the regulator is doing so at a fixed price of 5,000 rubles ($59) per 1 gram between March 28 and June 30, raising the possibility of Russia returning to the gold standard for the first time in over a century.
If the country takes the next step, as has been proposed this week, to sell its commodities priced in rubles, these combined moves could have huge implications for the ruble, the US dollar, and the global economy.
To get some answers, RT spoke to precious metals analyst Ronan Manly at BullionStar Singapore.
— Why is setting a fixed price for gold in rubles significant?
By offering to buy gold from Russian banks at a fixed price of 5,000 rubles per gram, the Bank of Russia has both linked the ruble to gold and, since gold trades in US dollars, set a floor price for the ruble in terms of the US dollar.
We can see this linkage in action since Friday 25 March when the Bank of Russia made the fixed price announcement. The ruble was trading at around 100 to the US dollar at that time, but has since strengthened and is nearing 80 to the US dollar. Why? Because gold has been trading on international markets at about US$62 per gram which is equivalent to (5,000 / 62) = about 80.5, and markets and arbitrage traders have now taken note, driving the RUB/USD exchange rate higher.
So the ruble now has a floor to the US dollars, in terms of gold. But gold also has a floor, so to speak, because 5,000 rubles per gram is 155,500 rubles per troy ounce of gold, and with a RUB/USD floor of about 80, that’s a gold price of around $1,940. And if the Western paper gold markets of LBMA/COMEX try to drive the US dollar gold price lower, they will have to try to weaken the ruble as well or else the paper manipulations will be out in the open.
Additionally, with the new gold to ruble linkage, if the ruble continues to strengthen (for example due to demand created by obligatory energy payments in rubles), this will also be reflected in a stronger gold price.
— What does it mean for oil?
Russia is the world’s largest natural gas exporter and the world’s third largest oil exporter. We are seeing right now that Putin is demanding that foreign buyers (importers of Russian gas) must pay for this natural gas using rubles. This immediately links the price of natural gas to rubles and (because of the fixed link to gold) to the gold price. So Russian natural gas is now linked via the ruble to gold.
‘Impossible’ to sanction Russian gold, financier tells RT READ MORE: ‘Impossible’ to sanction Russian gold, financier tells RT
The same can now be done with Russian oil. If Russia begins to demand payment for oil exports with rubles, there will be an immediate indirect peg to gold (via the fixed price ruble – gold connection). Then Russia could begin accepting gold directly in payment for its oil exports. In fact, this can be applied to any commodities, not just oil and natural gas.
— What does that mean for the price of gold?
By playing both sides of the equation, i.e. linking the ruble to gold and then linking energy payments to the ruble, the Bank of Russia and the Kremlin are fundamentally altering the entire working assumptions of the global trade system while accelerating change in the global monetary system. This wall of buyers in search of physical gold to pay for real commodities could certainly torpedo and blow up the paper gold markets of the LBMA and COMEX.
The fixed peg between the ruble and gold puts a floor on the RUB/USD rate but also a quasi-floor on the US dollar gold price. But beyond this, the linking of gold to energy payments is the main event. While increased demand for rubles should continue to strengthen the RUB/USD rate and show up as a higher gold price, due to the fixed ruble – gold linkage, if Russia begins to accept gold directly as a payment for oil, then this would be a new paradigm shift for the gold price as it would link the oil price directly to the gold price.
For example, Russia could start by specifying that it will now accept 1 gram of gold per barrel of oil. It doesn’t have to be 1 gram but would have to be a discounted offer to the current crude benchmark price so as to promote take up, e.g. 1.2 grams per barrel. Buyers would then scramble to buy physical gold to pay for Russian oil exports, which in turn would create huge strains in the paper gold markets of London and New York where the entire ‘gold price’ discovery is based on synthetic and fractionally-backed cash-settled unallocated ‘gold’ and gold price ‘derivatives.
— What does it mean for the ruble?
Linking the ruble to gold via the Bank of Russia’s fixed price has now put a floor under the RUB/USD rate, and thereby stabilized and strengthened the ruble. Demanding that natural gas exports are paid for in rubles (and possibly oil and other commodities down the line) will again act as stabilization and support. If a majority of the international trading system begins accepting these rubles for commodity payments arrangements, this could propel the Russian ruble to becoming a major global currency. At the same time, any move by Russia to accept direct gold for oil payments will cause more international gold to flow into Russian reserves, which would also strengthen the balance sheet of the Bank of Russia and in turn strengthen the ruble.
Talk of a formal gold standard for the ruble might be premature, but a gold-backed ruble must be something the Bank of Russia has considered.
— What does it mean for other currencies?
The global monetary landscape is changing rapidly and central banks around the world are obviously taking note. Western sanctions such as the freezing of the majority of Russia’s foreign exchange reserves while trying to sanction Russian gold have now made it obvious that property rights on FX reserves held abroad may not be respected, and likewise, that foreign central bank gold held in vault locations such as at the Bank of England and the New York Fed, is not beyond confiscation.
India ready to bypass dollar in trade with Russia READ MORE: India ready to bypass dollar in trade with Russia
Other non-Western governments and central banks will therefore be taking a keen interest in Russia linking the ruble to gold and linking commodity export payments to the ruble. In other words, if Russia begins to accept payment for oil in gold, then other countries may feel the need to follow suit.
Look at who, apart from the US, are the world’s largest oil and natural gas producers – Iran, China, Saudi Arabia, UAE, Qatar. Obviously, all of the BRICS countries and Eurasian countries are also following all of this very closely. If the demise of the US dollar is nearing, all of these countries will want their currencies to be beneficiaries of a new multi-lateral monetary order.
— What does this mean for the US dollar?
Since 1971, the global reserve status of the US dollar has been underpinned by oil, and the petrodollar era has only been possible due to both the world’s continued use of US dollars to trade oil and the USA’s ability to prevent any competitor to the US dollar.
But what we are seeing right now looks like the beginning of the end of that 50-year system and the birth of a new gold and commodity backed multi-lateral monetary system. The freezing of Russia’s foreign exchange reserves has been the trigger. The giant commodity strong countries of the world such as China and the oil exporting nations may now feel that now is the time to move to a new more equitable monetary system. It’s not a surprise, they have been discussing it for years.
While it’s still too early to say how the US dollar will be affected, it will come out of this period weaker and less influential than before.
— What are the ramifications?
The Bank of Russia’s move to link the ruble to gold and link commodity payments to the ruble is a paradigm shift that the Western media has not really yet grasped. As the dominos fall, these events could reverberate in different ways. Increased demand for physical gold. Blowups in the paper gold markets. A revalued gold price. A shift away from the US dollar. Increased bilateral trade in commodities among non-Western counties in currencies other than the US dollar.
Besides c1ue it is not nice calling someone an idiot, how would you feel if someone called your mom like that?

Posted by: Milos | Apr 2 2022 10:37 utc | 229

Posted by: bevin | Apr 1 2022 19:11 utc | 86
Well said. If the only acceptable movement of the political spectrum is rightwards, then the fact that we’ve ended up with the whole western world cheering on a nation with a neo-Nazi battalion in its armed forces was totally inevitable. And hugely dispiriting.

Posted by: D J G | Apr 2 2022 10:38 utc | 230

fyi :):):):)
https://twitter.com/Angelo4justice3/status/1510128410278121474
Angelo Giuliano 🇮🇹 🇨🇭 @Angelo4justice3
five stages of grief are:
denial
anger
bargaining
depression
paying in rubles
Crédit : Jim Jones
11:34 PM · Apr 1, 2022·

Posted by: michaelj72 | Apr 2 2022 10:48 utc | 231

Posted by: Paul Greenwood | Apr 2 2022 9:00 utc | 209
Somebody already mentioned it, but let me say it again. Except for cash, all currencies are kept at their issuing central bank. There maybe intermediaries but that’s the end result. Gasprom bank cannot hold euros without cooperation with a euro zone bank. Otherwise Gasprom bank could create any amount of euros.
In other words a euro account at Gasprom bank is part of Gasprom bank euro account at some intermediary bank in euro zone. That bank in turn might have an account at ECB or other euro zone bank.
An other possibility would be an old fashioned promissory note on paper. Not sure if those are in use. I could also imagine Gasprom bank having a euro account at a Chinese bank which in turn has an account in an euro zone bank.
Bottom line, Gasprom bank cannot keep euros outside of euro zone banking system.

Posted by: RJB | Apr 2 2022 10:51 utc | 232

@Piotr Berman | Apr 2 2022 3:45 utc | 183

It is worth to note is that gold is traded by a troy ounce which is different that ounce for more mundane goods. The mess with units is most appealing with natural gas, with prices quoted for megawatts, millions of British thermal units, thousands of cubic feet — or cubic meters. Europeans made some effort to measure with SI units. That would require to measure the weight in newtons (between 700 and 800 newtons in my case), but for clarity, we now record mass (between 700 and 800 hectograms in my case).

Some confusion to correct here:
Watt is part of the SI system.
SI power unit: watt (W), 1 W = 1 kg*m²/s³
In the SI system, do not confuse measure of mass with measure of force. Newton is a force unit.
SI mass unit: kilogram (kg)
SI force unit : Newton (N), 1 N = 1 kg*m/s²

Posted by: Norwegian | Apr 2 2022 10:53 utc | 233

Posted by: JS | Apr 2 2022 9:31 utc | 214

The woman from the maternity hospital bombing in Mariupol that was on all the Western Mass Media has spoken out.
She gives a lot of detail and nuances, and I recommend watching the video in full.
…
2) It wasn’t an air strike, it was artillery

Inessa S has published a version of the video with english captions. There is a link on my page on the Mariupol hospital bombing.
Why did Ukrainians fire Tochka U missiles at Mariupol.
I believe Ukrainians fired two Tochka U missiles at the maternity hospital. The 4 meters deep crater is far too big for any type of artillery. Only Tochka U and Iskander M missiles with bunker-busting warheads leave craters like this.
There is a Tochka U engine part in a playground in the Left Bank neighborhood of Mariupol. It might be from one of the missiles that hit the hospital. In a Tochka U missile the warhead separates from the engine part before impact. The Left Bank is however quite far from the hospital, and in an odd direction, so this may be a different Tochka U with a different target.
A photo of the missile first appeared online on March 24th. A video from the same site was published a few days ago. The March 24th photograph must have been taken before DNR and Chechen forces took control of the area. In the photo the apartment building next to the playground is undamaged. In the video it is totally burnt out.
Why are Ukrainians firing Tochka U missiles at their own cities?

Posted by: Petri Krohn | Apr 2 2022 10:59 utc | 234

🇫🇷🇺🇦🇷🇺 The French write that on board the downed helicopter near Mariupol there may have been two French intelligence officers who died.
t.me/intelslava/24195
24.2K views
Apr 2 at 21:38
“>https://t.me/intelslava/24195

Posted by: mENZ | Apr 2 2022 11:29 utc | 235

They recruiting new agents as we speak

Posted by: Anne B | Apr 2 2022 11:33 utc | 236

Anne B (223).
Thank you for that informative link, I see on the page that they are also looking for “personnel to protect (UHNW) families in Nicaragua as well, a country the US wants to overthrow the government of.
(UHNW) of which I had no clue what it meant until I looked it up, means Ultra High Net Wealth families.

Posted by: Republicofscotland | Apr 2 2022 11:44 utc | 237

Posted by: Petri Krohn | Apr 2 2022 10:59 utc | 231
Why are Ukrainians firing Tochka U missiles at their own cities?
This is ironic ?? I do hope.
If not ironic you should start here https://youtu.be/4XopADw6m9U

Posted by: Lapin | Apr 2 2022 11:47 utc | 238

Off topic.
Interview with Marianna, the pregnant blogger in the alleged hospital airstrike.
https://youtu.be/f0rqHB41__A

Posted by: DebZee | Apr 2 2022 11:50 utc | 239

From the Saker, map and all, SITREP.
” I have counted every single brigade and BTG listed on the map and have come out with a startling find that correlates exactly with what I’ve been saying for a while, and have written in detail about in the last report. Namely: there appears to be only about 50-60 total Russian BTGs in Ukraine. Considering that a Russian BTG is listed as having an estimated 600-800 men, this would amount to 50,000 – 60,000 troops in total deployment.”
https://www.uawardata.com/

Posted by: Republicofscotland | Apr 2 2022 12:58 utc | 240

DebZee (236).
The Saker has a report on it as well.
A snippet.
“-One of the big stories today is the infamous ‘maternity ward girl’ has in fact come forward. Named Marianne, it turns out she’s from the Donbass and has completely refuted the Ukrop propaganda. She states in her interview that not only was the maternity not “bombed” by any planes like the fakenews contends (it was “shelled”), but she recounts how Ukrop military stormed the maternity ward, stole all the patients’ food even after she told them they were for the pregnant women, didn’t tell anyone of any attacks and after the “attack”, conveniently the Ukrop soldiers appeared only minutes later already towing western photojournalists and basically used her as a “prop” despite her crying and repeatedly telling them to stop taking photos. In short, it appeared to be a rehearsed psyop event where the photographers were already waiting in the wings for the aftermath, and the pregnant showpiece was perfectly utilized as an object of orchestrated propaganda.”
Her account of what happened can be found here as well.
https://twitter.com/mission_russian/status/1510012837237825545

Posted by: Republicofscotland | Apr 2 2022 13:06 utc | 241

I think Russia is testing the waters with its temporary gold/ruble ‘peg’
There are a lot of unknowns in the strengthening of the ruble as a dominant international currency and the unwinding of the physical gold vs the ‘paper’ gold problems. This temporary ‘peg’ gives 3 months for these to play out.
I think the long term goals of Russia and China are to have the ruble and yuan backed by a variety of resources (labor and commodities) and to destroy the weaponizing nature of the USD
———-
This is from a comment on currencies by economist Eric Tymigone
bitcoin
“Emergence of money was not based on market exchange but wergeld and then state. The story of money starts with the imposition of a unit of account and some financial instruments. This financial instruments were first uncollateralized unconvertible financial instruments (in Egypts and Mesopotamia via shubati), went to collateralized financial instruments (gold coins), then convertible financial instruments (convertible paper money) and then back to unconvertible financial instruments. Both states and private sector have issued monetary instruments.”
I think this is what China is trying to do with its yuan/gold experiment. It is trying to enter the international market at the ‘convertible paper money’ stage.
I think the main problem with a gold based system is that there is not enough gold to cover all the transactions. But once the yuan becomes more accepted they could move to the ‘unconvertible financial instrument’ stage. Similar to the trip the USD took.
Posted by: financial matters | November 02, 2017 at 08:46 AM

Posted by: financial matters | Apr 2 2022 13:10 utc | 242

(bitcoin)
http://neweconomicperspectives.org/2013/12/fair-price-bitcoin-zero.html

Posted by: financial matters | Apr 2 2022 13:13 utc | 243

Turkish poll shows that most Turks think Nato and Ukraine have caused this conflict.
“Share of Turks who say Russia is responsible for the war in Ukraine: 33.7%
Share who say the US and NATO are responsible: 48.3%”
https://twitter.com/p_zalewski/status/1509105527359479808

Posted by: Republicofscotland | Apr 2 2022 13:15 utc | 244

I can’t validate Soviet tanks going to Ukraine but photos are popping up here in Hungary of a shitload of US M1A2 tanks with Nevada National Guard symbols on them on rail cars heading to at least the border with Ukraine and perhaps further. This is despite Orban stating that no weapons or forces will enter Ukraine from Hungary.

Posted by: Old Microbiologist | Apr 2 2022 13:22 utc | 245

It looks like Ukrainian forces killed and burned the bodies of Russian prisoners at a dairy processing plant in Malaya Rohan, which is about 3 miles East of Kharkiv.
“On Monday, a well-known Ukrainian journalist, Yuri Butusov, published graphic video showing the charred remains of three men he identified as Russian soldiers, as Ukrainian forces recaptured the town of Malaya Rohan, outside Kharkiv, over the weekend.
Although Butusov made no mention of the video of the alleged war crime, a visual analysis of his footage shows that it was clearly filmed in the same location as the video of the prisoners being shot, some time after that incident.”
https://theintercept.com/2022/03/31/ukrainian-journalist-finds-charred-remains-alleged-war-crime-filmed/

Posted by: Republicofscotland | Apr 2 2022 13:22 utc | 246

Bruisednortherner@211, threat to Canada from the North. Not Russia? Holy fuck, it’s the bearded guy with the elves?
Cheers M

Posted by: sean the leprechaun | Apr 2 2022 13:28 utc | 247

Bravo Bevin @ | Apr 1 2022 19:11 utc | 86
Your masterful post makes 2 things starkly evident.
First, the present world kerfuffle cannot be reduced to a mano a mano between VVP and the cocaine comedian, or VVP and Brandon, or a even conflict between states. It is best understood as the latest in a series of conflicts between the privileged 1% and the 99% from whom they extract their wealth.
The Special Operation has plunged our world into a civilizational conflict. The fundamental issue is the nature of human civilization going forward. Will the 99% have any voice in the future or must we imitate Scholz and Macron and follow the dictates of the Washington elite? Does the democratic franchise have any meaning if our political choice is restricted to candidates crafted and vetted by Washington? Is it possible to engage in public debate when saying the wrong thing, or thinking an “incorrect thought,” involves risk of cancellation, loss of employment, and social ostracization?
I suspect most barflies are in the 99% and, like Hausmeister | Apr 1 2022 19:11 utc | 87, we do not like money unless we need it. I believe the bar prioritizes truth above money and this is what makes our debates so enlightening.
We need to thank b for providing this opportunity to dialogue. From MoA we can look out and survey the world and understand the origins and basis of facism – “leaders” who act against their own peoples interest in pursuit of Washington’s favour, a media which celebrates a madman’s propaganda and endorses crimes against humanity while distorting every report, a public which inhabits an “empire of lies” and fails to recognize we have entered the 1984 era 38 years late.
Second, the 1%, being keenly aware of a disruption in their position of privilege, have every incentive to escalate the conflict to ensure their prerogatives are not threatened by those they view as deplorables. What is the point of Davos if the 99% are the ones calling the shots? How do you retain elite status when the 99% rip off your cloak of deceit and reject every lie? How do you maintain your exalted income if producers demand their share of the global wealth that now disappears into the pockets of the financiers and their Hunter Biden minions?
If you were a member of the Ancien Régime and foresaw the pending collapse of your decadent political and social system would you not take every possible step to avert such an occurrence? If you were the titular head of the Empire of Lies would you not act similarly? What is the point of living in a world in which you must surrender your elite prerogatives? If you had the opportunity to obliterate the putative enemy would you not exercise that opportunity?
“It was the best of times, it was the worst of times, it was the age of wisdom, it was the age of foolishness, it was the epoch of belief, it was the epoch of incredulity, it was the season of light, it was the season of darkness, it was the spring of hope, it was the winter of despair.” This is our time.

Posted by: Sushi | Apr 2 2022 13:34 utc | 248

“It was the best of times, it was the worst of times, it was the age of wisdom, it was the age of foolishness, it was the epoch of belief, it was the epoch of incredulity, it was the season of light, it was the season of darkness, it was the spring of hope, it was the winter of despair.” This is our time.<\I>
Posted by: Sushi | Apr 2 2022 13:34 utc | 245
Thank You for the Dickens, very apropos.

Posted by: Bemildred | Apr 2 2022 13:47 utc | 249

Posted by: Republicofscotland | Apr 2 2022 12:58 utc | 237
I do too believe Russians are working with minimal/slim number of forces, from 60k (lower) up to 200k (higher) estimate. I think number is closer to lower estimate. Added to these are LDR and Chechen special forces + support troops in Russian proper + navy of the coast harassing Ukies.
Reasons for this are 2-fold IMO:
1. rest of the forces are kept in Russian proper + Belorussia as a contingency and detterence in case of NATO attack.
2. not massing more forces sends message to Pentagon guys (as only they have enough brain cells to understand) Russia has no intentions for anything other than its publicly stated goals (eg. invading NATO countries).
But, this is only so far. Russia can very well change all that with new phase.

Posted by: Abe | Apr 2 2022 13:51 utc | 250

“The author, Arndt Ginzel, is a well known propaganda documentary filmmaker in Germany.”
Fixed it for you.
Posted by: Roger | Apr 1 2022 21:47 utc | 132
Thank you Roger for the unique service! :-))
Anyway some german barflies might be interested to have a closer look at this ZDF bs?
https://www.zdf.de/politik/frontal/angriffe-auf-zivilisten-belege-des-grauens-in-ukraine-100.html

Posted by: njet | Apr 2 2022 13:56 utc | 251

According to debka, Russians are retreating Kiyv area due to heavy losses. I believe that.
But it says they are regrouping and might go back soon. Putin and co are a bit worried now. Retooling the leadership on the battlefield.

Posted by: comandante | Apr 2 2022 14:19 utc | 252

Abe (247).
Yes I tend to agree with that, I think Russia has time on its side, to finish and mop up the majority of the Nazi’s in and around Maruipol (Azovstal complex) and in other central and Eastern areas, as you rightly point out, holding back a significant number of troops and weaponry, sends two messages one we can defend an attack from where ever it may come from, and two, also as you say, we’ve sent enough troops to clear out the Nazi’s and no more. Which if not to placate Nato forces at the very least, shows that its a temporary operation and the number of troops on the ground reflects that.
Russia needs to and has shown strength on this matter, and has no real need to placate Nato, however no one wants to take this to the next level, well most don’t Scotland’s FM Nicola Sturgeon called for a no-fly zone over Ukraine, which ultimately would’ve led to combat between Russian and Nato, Sturgeon is a Trilateral Commission member and puppet.

Posted by: Republicofscotland | Apr 2 2022 14:51 utc | 253

Why would Germany need to buy a missile defence system from Israel or the USA to protect itself against Russia, is the German government planning something, that it might need these systems to repel missiles from Russia.
“German weekly Welt am Sonntag reported on Saturday that Berlin is considering buying a missile defense system from Israel or the United States to defend against perceived threats including Russian Iskander missiles in Kaliningrad.
The Iskander missiles can reach almost all of western Europe and there is no missile shield in place to protect against this threat, Germany’s chief of defense Eberhard Zorn told Welt am Sonntag in an interview.”

Posted by: Republicofscotland | Apr 2 2022 14:59 utc | 254

Posted by: comandante | Apr 2 2022 14:19 utc | 249

According to debka…

Ah, the Debka, right. Still waiting on that Chinese carrier and marines to land in Syria they reported so seriously in 2015.

Posted by: Abe | Apr 2 2022 15:01 utc | 255

@Milos #226
Thanks for publishing the interview.
The interviewee: Ronan Manly – a long time gold bug/proponent. Manly has put out some interesting stuff but is 100% tunnel vision focused on gold and is absolutely not an objective analyst on the subject of gold.
The interview itself notes that:

The Bank of Russia has resumed gold purchases this week

The CBR stopped purchasing gold from Russian banks (i.e. not just anyone, from Russian banks) in mid-March <-- in the same announcement about the 5000 rubles/gram price to restart the program. The program is only from March 28 to June 30, 2022. And then there's this: Bank of Russia Resumes Gold Buying After Two Years On Sidelines – bloomberg
And this: Bank of Russia suspends purchases of gold in the domestic bullion market – cbr.ru
So we have the CBR stopping purchases of gold for 2 years, restarted on 2/27/22, stopped again “mid-March”, restarted on 3/28/22 to buy gold at a fixed price per gram from [presumably Russian] banks, and then 2 days later specifically states it will not be buying from the domestic bullion market.
Doesn’t look like a peg to me.
Looks like exactly what I speculated earlier: a temporary measure to pit arbitragers vs. currency speculators.

Posted by: c1ue | Apr 2 2022 15:10 utc | 256

241 – A few weeks ago a panel discussion on News Global, a pro-Erdogan TV channel, took place on the theme of whether ties to NATO or to Russia were most beneficial for Turkey. I did not watch all the programme so I do not know if any consensus was reached – perhaps there wasn’t one. But Turkey has been in NATO for about 70 years yet it is hard to see any other NATO country, with the possible exception of Hungary, openly questioning the value of NATO. In the poll, 7% of respondents blame Ukraine, but clearly far more Turks seem them as too weak to be the main instigators in this.

Posted by: Waldorf | Apr 2 2022 15:11 utc | 257

“Bottom line, Gasprom bank cannot keep euros outside of euro zone banking system.”
Posted by: RJB | Apr 2 2022 10:51 utc | 229
This is correct. The corollary is also correct. You cannot hold Rubles outside of the Russian banking system. So from today, European consumers of Russian Gas will have to hold Rubles in order to buy. They could decide to just hold Euro’s and exchange them at the prevailing FX rate at the time of purchase, but will be unacceptable because FX risk now sits with the purchaser of Russian gas and not with the seller.
The big question today is whether this new system will survive the combined resistance of the US and the E.U. if it does, and that is by no means certain yet, then we in the West are in for a world of extreme pain. Buyers will change behavior quickly to offset the FX risk. They will enter into forward and futures transactions denominated in Rubles. They will try to lend in Rubles to hold Ruble denominated assets. And because their economies have inelastic demand for Roubles, World central banks will have to hold Ruble denominated reserves to cover transactions.
So there is no floor on the Ruble/EUR exchange rate. Today, there are massive amounts of EUR and USD denominated debt floating the system. These “assets” are held in various asset management accounts, company treasury departments etc. Unfortunately, the need for these “assets” to offset specific FX risks are diminished in the new system because purchases would not be denominated in those currencies.
This is a nightmare scenario for the US and E.U. consumer. Consider that oil prices, at approximately US$ 100 per barrel today. This translates to RUB8,000 per barrel. If this new system survives initial attempts to kill it, then it is possible that Rubles become a major component of FX reserves across the world. Also, oil prices will be partially anchored in Rubles and, for the first time in over a century, US consumers will run daily FX risk.
the increased international demand for Rubles combined with the diminished demand for US$ forces a massive appreciation of the Ruble. Imagine, for instance the oil price remains at RUB8,000 per barrel but that the US$ devalues relative to the Ruble to RUB20/US$. That translates to a price of US$400 per barrel. How does that translate to the consumer? A rough metric says that gasoline in the US trades on a per gallon basis for about 5% of the per barrel cost of oil. That is US$100 per barrel translates to a price of approximates US$5.00 per gallon. So a RUB appreciation to 20 would translate to a gasoline price of US$20 per gallon.
More importantly, there is no ceiling to the oil price in US$ because it would now depend not just on the supply and demand characteristics of the commodity but also on the particular monetary ingredients making up the new world currency order. It is conceivable, given the enormous stock of internationally traded debt denominated in US$ And the paltry amount of RUB debt in international markets, that the RUB and USD trade at parity. That would push gasoline prices to a truly crushing US$400/gallon at the pump.
Of course all of these numbers we only indicative of the risk. They assume that oil prices are denominated only in RUB. That is not likely at this juncture. It does serve to illustrate the risk however.
What is more important is that the West will fight ferociously to kill this new system because they are fighting for their own survival.

Posted by: VtObserver | Apr 2 2022 15:15 utc | 258

Looking at the Turkish poll in more detail, HDP voters (mostly Kurds) are about evenly divided in assigning blame between Russia and NATO but they are the most pro-American party and some think the USA rides to the rescue to save democracy etc. The far right MHP is strikingly hostile to NATO, with 68.2% against, which is ironic as they were built up in the Cold War partly with NATO encouragement to combat Communist influence in Turkey, often violently.

Posted by: Waldorf | Apr 2 2022 15:21 utc | 259

@financialmatters #239
The issue with gold-backed currency is NOT that there isn’t enough gold. You can always have 100 to 1, 10 to 1 or whatever leverage on gold.
The fundamental issue is that pegging a currency to gold or any other “relatively fixed” price commodity removes the sovereign power of the state to control its own monetary system.
The other effect of “pegging” currency to gold is that it enshrines the power of those who presently have the most money <-- largely because it removes the sovereign power of the state over the financial system. Ain't gonna happen. As for bitcoin: arguing over the "fundamental value" of bitcoin is just as stupid as arguing over the "fundamental value" of any number of subjectively valued things like paintings, dance, literature, etc etc. The reality is that HNW (high net worth) individuals have bought into the bitcoin (pretty much only bitcoin, not the other cryptocurrencies) as having value as an investment. Ethereum is still trying to make the transition - both by limiting supply in a recent architecture change and by the "DeFi" - (decentralized finance) meme. If you want a thorough breakdown of why all of the cryptocurrencies are fundamentally valueless from a "value" perspective, here is a great writeup but it is irrelevant for bitcoin right now.
Summary of that talk:

1) That the externalities I describe don’t exist. You’ll have a hard time proving that the waste of electricity and hardware, and the crime wave, are imaginary.
2) That although the externalities do exist, the benefits of decentralization outweigh them. The problem here is that since the systems are not actually decentralized, we get the externalities but don’t get the benefits.
3) That although the externalities do exist, and the systems aren’t dencentralized, they’re making so much money that we shouldn’t worry. The problem here is that the amount of actual money you can get out of a cryptocurrency equals the amount of actual money that has been put in, minus the actual costs of mining. So the big picture is that although there may be winners, in aggregate the system loses money.

Posted by: c1ue | Apr 2 2022 15:25 utc | 260

M, sean the leprechaun @ 244, bearded guy with the elves?? You’re not trying to pin this on Ihor Kolomoyskiy too now are you?
For educational purposes, Canada’s CTV reports, “What is a Russian oligarch?” A focus on Abramovich in this.
https://www.ctvnews.ca/w5/what-is-a-russian-oligarch-1.5844637
So many bearded men, (so many elves!!)
Canadian demand for luxury bunkers through the roof, reports Global News (not satire)
https://globalnews.ca/news/8728927/bunkers-fallout-shelters-canada-demand/
https://www.lapresse.ca/actualites/politique/2022-04-02/guerre-en-ukraine/melanie-joly-retourne-en-europe-notamment-pour-parler-de-l-arctique.php

Posted by: Bruised Northerner | Apr 2 2022 15:32 utc | 261

@RJB #229
You said

Except for cash, all currencies are kept at their issuing central bank.

Wrong.
ECB issued euro bonds cannot be outside the Euro system in the sense that the ECB ultimately holds all of these bonds, but there are corporate euro bonds and euro denominated debt – such as MBS’s of credit cards or mortgages, etc.
The euro bonds by corporations – these are NOT directly under ECB control. A holder of a corporate euro bond receives “physical” euros in payment upon maturity (i.e. cash). I don’t see an easy listing of how many euros in these corporate bonds exist, but the overall corporate bond market was $13.5 trillion in 2019 source
If the proportion is similar to the euro in world trade – that would make roughly $1.9 trillion in corporate bonds.
You should read up on all the different forms by which money exists in a financial system – it isn’t just government bonds and “cash”.

Posted by: c1ue | Apr 2 2022 15:36 utc | 262

@VtObserver #255
Wrong.
I am literally holding rubles as I type this even as I live in the US. I am also holding euros, Mexican pesos, Brazilian reais, Japanese yen, Chinese yuan, Taiwan NT, Singapore dollars, Australian dollars, Malaysian ringgit, Hong Kong dollars, and probably a dozen other country’s money – places I’ve visited in the past.

Posted by: c1ue | Apr 2 2022 15:40 utc | 263

@ VtObserver | Apr 2 2022 15:15 utc | 255 who wrote
”
…
They could decide to just hold Euro’s and exchange them at the prevailing FX rate at the time of purchase, but will be unacceptable because FX risk now sits with the purchaser of Russian gas and not with the seller.
”
”
….
What is more important is that the West will fight ferociously to kill this new system because they are fighting for their own survival.
”
Thanks for the confirmation of my understanding that the purchaser has the FX risk
I agree that the private finance cult of the West will try and incite the small percentage of humanity they still have brainwashed to fight for their survival.
I agree with your concern about the “monetary ingredients making up the new world currency order”. Another factor is going to be if China or other countries try to join or create their own “regional/alternative” systems of finance based on non-fiat money. I read early on that China was going to be part of the alternative financial system and I would feel better about its chances it that were the case….and I think it will be.
Look at the pressure being put on China by empire and now empire is sending weapons to Taiwan which I don’t think China will stand for. I just don’t think that the time is right for the announcement of China being part of the alternative Reserve Currency….but maybe when the architecture of the new system is released it includes that ability to add other nations…..it certainly seems that their is a growing group of nations wanting to explore a public way of finance being part of our social contract instead of the tools of finance being privately held.

Posted by: psychohistorian | Apr 2 2022 15:42 utc | 264

So Russian Central Bank accumulates a lot of Euros.What can they do with those,when trade with EU countries is made impossible by sanctions?
Could it be that Russia is planning to pay commodities bought from African nations with euros,when those countries are less interested in rubles for paying stuff in Europe?Wouldn’t this
partially liberate those countries from their continued colonization through Euro-overlordship?
Think of the franc CFA used in a lot of West-Africa states,at par with Euro.
This chess-move may have repercussions worldwide that we are not able to imagine yet.
Last week driving on a departemental road I watched two cloudgray Hercules-C130 200 meters before me,at an estimated 50 meters from ground level and then flying uphill barely above the trees.They had no distinctive sign or flags,no numbers were seen by me.Clearly exercising for a special mission.The evacuation of NATO-assets from Mariupol was n’t a discussed matter at that time.
If Macron or Nato are desperate for those guys being captured alive,there rests only one option,that is to kill those assets.
A subradar gunship or bombing action could do the trick.Of course the pilots must be kamikaze.

Posted by: willie | Apr 2 2022 15:45 utc | 265

A realistic appraisal of where the Russians are now is given by Marko Marjanović, Editor of Anti-Empire.com (Russian). Do read if you have the time.
https://edwardslavsquat.substack.com/p/i-am-in-awe-of-the-sheer-ruthlessness?s=r.
This explains that the Russians started badly by not using their complete military abilities. Neither the artillery, ground forces nor aviation. In spite of theirs being possibly the best in the world for coordinated armed forces. Having done that and lost the initiative, they now have had to make hard choices, ie. to give up territory – to regroup and be more efficient.
He estimates that the real war starts now, (a month late with unecessary losses to make up for). Plan B with no wishful thinking.
“It took a few weeks but now Russia’s application of logic and military 101 is ruthlessly total. We move from Lavrov to Shoigu.
**
The first part, from 24 february, left the Russians all around the outside of Ukraine without enough force concentrated at any one point to make inroads into an efficient defense. They have now made the hard choice of giving up some gains (around Kiev, Cherniv etc), to redirected their efforts for an improved result. Starting with the central cauldron next to DPR,LPR and east of the Dnieper river.
They are changing from a “politicians war” to a military one. (My phrase)
The new one will be much more professional, serious and probably more lethal for Ukrainian troops.
***
Additional points;
* Captured phones, computers etc. point to NATO involvement at command level in Ukie forces on the ground. Does this mean they were in direct contact/control over Azov brigades?
* Spy planes along the Belatus/Russian frontier and around Moldovia now consist of a bigger percentage of NATO planes, and the US has less. (Swedish, French and Italian). They noticibly fly closer to the frontiers.
* The eight years that NATO has been preparing for this war means that it will no longer be restricted to Ukraine – as the Russian have said they will target UK arms “as they arrive”. The supply lines which will be targeted originate in the EU and US. Hungary reports US tanks moving towards Ukraine. Remember that the US has obliged all EU countries to reinforce the civilian infrastructure (bridges etc) to be able to take rapid movements of columns of tanks.
*So the concerted media blitz we see has also been worked out FROM THE BEGINNING as a joint effort. No “innocent” europeans or Brussels. This possibly explains why the EU has gone overboard with sanctions. They played a bigger part in the conception and preparation for the NATO encroachment than generally admitted.
*The goodwill from being kind to civilians will not have been wasted for the Russians. The rest of the world is watching. Nor will the ending of the Azov in Mariupol (not ended yet)
****
The financial war is yet to get really nasty, although I saw a vid of Putin “talking” about the wests double dealing. Geez, from his body language I wouldn’t want to get in his way at the moment.

Posted by: Stonebird | Apr 2 2022 16:03 utc | 266

GAZPROM HAS STOPPED DELIVERIES OF RUSSIAN GAS TO GERMANY VIA YAMAL-EUROPE PIPELINE
3:43 PM · Apr 2, 2022
Instead of flowing toward Germany and the EU, gas supplies on Friday and Saturday started flowing in the opposite direction, according to Gascade, the network operator.

Posted by: Kim | Apr 2 2022 16:05 utc | 267

[.]The question must which country will the tanks come from and which country will allow them to be smuggled into Ukraine, and will Russia see this as an act of war and attack the country, or will Russia strike the weapons in the country or on the border of the country and UKraine.[.]
Posted by: Republicofscotland | Apr 2 2022 9:32 utc | 215
Greece. and, the Trade Unions are protesting.
Greek Railway Workers Reportedly Refuse to Transport NATO Tanks Toward Ukraine
https://sputniknews.com/20220402/greek-railway-workers-reportedly-refuse-to-transport-nato-tanks-toward-ukraine-1094419495.html

“We, the railway workers, work to provide affordable and quality transportation to the people and for the transport of goods which can be used to meet their needs, not to become part of the country’s involvement in plans which are dangerous for the people, by transporting NATO material to areas near Ukraine. We will not be accomplices in the passage of the war machine through the territory of our country,” the statement added.
A dozen trade unions, including workers of the chemical industry of Northern Greece, construction, telecoms, food industry, hotels, catering establishments, local authorities and municipal enterprises backed the resolution.
According to Alexandropoulos port director Konstantinos Hadzimihail, three trains’ worth of NATO equipment have been sent to Poland and Romania through the port to date. At least three NATO ships have entered the port over the past month, including the US-flagged Liberty Passion, and the Hartland Point, a British ro-ro cargo vessel, and the US Liberty King, which is continuing to be unloaded.[.]

Will be greeted by Mr. Kinzhal and the scrap metal recyclers.
= = = = = =
I think the main problem with a gold based system is that there is not enough gold to cover all the transactions. But once the yuan becomes more accepted they could move to the ‘unconvertible financial instrument’ stage. Similar to the trip the USD took.
Posted by: financial matters | November 02, 2017 at 08:46 AM
Misconception. Not enough Gold is not the limiting factor.
* it’s not that there is not enough gold. Think price. Bloomberg had an article some 7 years ago that gold price could go to USD$64,000/oz if China declared Yuan to be backed by gold.
May 20, 2015:
Chinese Gold Standard Would need a rate of 50 times bullion price.
https://www.bloomberg.com/news/articles/2015-05-20/chinese-gold-standard-would-need-a-rate-50-times-bullion-s-price
I posit,
* Consider today the USA debt is “declared” at USD30 Trillion and if that figure is likely $90 trillion when unfunded liabilities (off book) are included, then price of gold is unimaginable.
* one should ignore the ‘declared tonnes’ of gold held by Russia and China Central Banks. China and Russia are the world’s No: 1 and 2 gold producers. 40,000 tonnes combined is more the real figure. Russia, at a minimum 12,0000 ounces. Gold does not leave Russia or China. They are buyers.
Article at link I posted previously. [Set aside fact the author drank the narrative Ukraine is winning the war, he knows his stuff on metals LMBA].
March 31, 2022: Edging Towards a Gold Standard
https://www.goldmoney.com/research/goldmoney-insights/edging-towards-a-gold-standard
= = = = =
According to debka, Russians are retreating Kiyv area due to heavy losses. I believe that.
@ comandante 249
Have salt will travel.
You omitted the /s. Debka is the Media outlet of the Israeli 3 letter cousin of the other 3 letter agency following the narrative.

Posted by: Likklemore | Apr 2 2022 16:08 utc | 268

I thought this was an interesting look at the current financial system that is in the process of being taken down.
————
financial matters says:
October 17, 2013 at 8:03 am
Liquidity Factory and the Reserve Currency
In his book ‘Extreme Money: Masters of the Universe and the Cult of Risk’ (2011) Satyajit Das talks about the ‘Liquidity Factory’.
On an inverse pyramid at the bottom little pinnacle are the central banks, 2%, then there are bank loans, 19%, then securitized debt, 38% and then derivatives 41%.
This is all considered liquidity ie the lubricant that allows the global economy to run. And 79% of it is derivatives and securitized debt which are largely unregulated and full of fraud. And the $16 trillion of US Treasuries used as collateral to back it all up is a small little fraction.
This is financialization run amok and what he calls ‘cotton candy’ which is spun sugar composed mostly of air.
No wonder Draghi doesn’t want us to be able to examine bank balance sheets but just have the taxpayer continue to bail them out while imposing austerity measures.
This mountain of debt being supported by this little pyramid needs to be dismantled before the right grain of sand causes it to crumble.
Countries shouldn’t have to pay back loans that their former dictators stashed away for themselves in off shore accounts. Students shouldn’t be indebted for most of their lives by college loans, medical bills shouldn’t be the major cause of household bankruptcy, homeowner’s who were given predatory loans so that the banks could repossess their house should have principal reductions to reflect actual value.
If US Treasuries continue to support cotton candy they will lose their validity as a global reserve currency.

Posted by: financial matters | Apr 2 2022 16:52 utc | 269

“Mexican pesos, Brazilian reais, Japanese yen, Chinese yuan, Taiwan NT, Singapore dollars, Australian dollars, Malaysian ringgit, Hong Kong dollars, and probably a dozen other country’s money – places I’ve visited in the past”.
@c1ue | 263
OK. Now try to spend them. Oh yes, and let me know how it goes when you have to buy US$100m worth of Roubles daily to fill your tank.

Posted by: VtObserver | Apr 2 2022 17:01 utc | 270

Posted by: Circe | Apr 2 2022 8:39 utc | 208
The saker is confusing courage and smartness with hatred and fanaticism. Too bad.
The Belgorod hit is not even a military target. The failed Mariupol escape is just that: a failure.
By the way, why did Macron stop to call Poutine about a humanitarian mission in Mariupol?

Posted by: Olivier | Apr 2 2022 17:15 utc | 271

Posted by: c1ue | Apr 2 2022 15:36 utc | 262
I don’t think you understand how modern computerized monetary system works.
You personally can hold cash, but that’s a minuscule part of the money in the economy.
Corporate bonds are not paid in cash. That’s ridiculous.
VtObserver analysis is correct.

Posted by: RJB | Apr 2 2022 17:53 utc | 272

@Stonebird | Apr 2 2022 8:31 utc | 206
I am glad you found it so. From my perspective one of the most powerful weapons the existing order has is the cynicism it soaks us all in with regard to any prospects for making any real change, or change for the better (witness all the dystopian-future visions the corporate media offers us).
“The Russian Revolution updated this to ‘Workers and oppressed peoples of the world, unite!’” was worded so both to create working class unity against the White Army and imperialist intervention forces, and also to make an overt call to the vast majority of humanity living in colonies of the imperialist powers—not too different from the updated call of the BRI/New Silk Road:
1) Win-win development of your means of production rather than exploitative extraction-economics and debt (plus, you will get a working class and technical intelligentsia in the bargain);
2) Self-determination/sovereignty and respect for international law (we won’t interfere in your internal affairs) rather than oppressive sanctions, regime change and “rules based orders”.
“The ‘Class’ aspect does it a disservice, as many people self-identify as ‘middle-class’ (in the EU) and with the ‘winners-elite’ in the US, (as in the American dream) rather than ‘workers/Labour’.”
I’m no stranger to this sentiment, having heard it all my adult life in the US. It’s been driven into us by the corporate media and academe for obvious reasons—cynicism, acceptance of capitalism as a given, manufacturing consent and allegiance as far as possible. John Steinbeck once said, “socialism never took root in America because the poor see themselves not as an exploited proletariat but as temporarily embarrassed millionaires.” The “middle class” are just working people who get a few extra crumbs, no extra power and who’ve been fooled into identifying with “their” rich.
But this is very much the point—all this is the dollar hegemony material reality we’ve known all our lives in the imperial metropoles of the US and EU. It’s been eroding for a generation now and no one believes the American Dream anymore. For years I’ve not had to say a word but just listen and nod in agreement as young people express class hatred against billionaires, educate themselves on socialist classics and organize mutual aid networks as capitalist society decays all around us. Anticommunism has less and less hold on the young here and it’s freaking the billionaires and millionaires out.
And this is just beginning. People here are no less intelligent than anywhere else; we’ve just been lied to and taught we’re apart from the rest of humanity. With events now unfolding realization—and anger—will greatly accelerate. Will the shaking off of old mindset be uneven? Of course, and there will be those who gravitate toward reaction as well, home grown fascism by whatever name. Will new revolutionary forms look like the old? Maybe in parts but I suspect mostly not—I’m thinking we’ll see forms of class war develop that are just as hybrid as what we speak of globally: 80% informational, 15% social-economic-political and 5% kinetic. Even with blinders finally off, given the raw state of consciousness here we might well have our “1905” before we have our “1917”. But no decaying empire is immune to collapse and revolution.
And so the 13%, or as I wrote at least the 12% who work for a living, will rejoin the rest of humanity, for whom “workers/Labour” has never stopped being ‘serviceable’ identifications. And we can really get to work.

Posted by: Vintage Red | Apr 2 2022 18:25 utc | 273

Speaking of the US govt slip-sliding away on its sanctions, the rascals in the US govt have decided to NOT sanction quite a few Russian provided items.
https://home.treasury.gov/system/files/126/russia_gl6a.pdf
“OFFICE OF FOREIGN ASSETS CONTROL
Russian Harmful Foreign Activities Sanctions Regulations
31 CFR part 587
GENERAL LICENSE NO. 6A
Transactions Related to the Exportation or Reexportation of Agricultural Commodities,
Medicine, Medical Devices, Replacement Parts and Components, or Software Updates, the
Coronavirus Disease 2019 (COVID-19) Pandemic, or Clinical Trials
(a) Except as provided in paragraph (c) of this general license, all transactions prohibited
by the Russian Harmful Foreign Activities Sanctions Regulations, 31 CFR part 587 (RuHSR),
that are ordinarily incident and necessary to: (1) the exportation or reexportation of agricultural
commodities, medicine, medical devices, replacement parts and components for medical devices,
or software updates for medical devices to, from, or transiting the Russian Federation; (2) the
prevention, diagnosis, or treatment of COVID-19 (including research or clinical studies relating
to COVID-19); or (3) ongoing clinical trials and other medical research activities that were in
effect prior to March 24, 2022, are authorized.” Full details at the link.

Posted by: Bonami | Apr 2 2022 18:50 utc | 274

Vintage Red | Apr 2 2022 18:25 utc | 273
“For years I’ve not had to say a word but just listen and nod in agreement as young people express class hatred against billionaires, educate themselves on socialist classics and organize mutual aid networks as capitalist society decays all around us. Anticommunism has less and less hold on the young here and it’s freaking the billionaires and millionaires out”.
I have very little exposure to that age group. However, of the little that I do meet, much antipathy is directed at “Government” or those who profess to be superior. Billionaires and so forth tend to be seen but not heard around here, although there are in fact quite a lot.
It is this separation of actual life from ideology in younger generations that is striking. With it goes a “shutting off” of threats and coercion at the same time. I don’t know what that will lead to, but I have hope that some communal renewal at a lower level leads to a break-up of overbearing offficialdom and the monetary mainmise over individual development.
Although a “class war” may sound nice – what could happen is that a collective “sending to Coventry” (UK saying meaning ‘don’t talk to’) emerges. Sidelining those who think they are all important.

Posted by: Stonebird | Apr 2 2022 19:22 utc | 275

Col. Cassad has reports of horrific brutality by the Ukrainians against Russian POWs. (Yandex or Edge should be able to translate.)
https://colonelcassad.livejournal.com/7535185.html

Posted by: Victor | Apr 2 2022 19:52 utc | 276

@Stonebird | Apr 2 2022 19:22 utc | 275
I am fortunate to be in social circles that span generations. Most of the cynicism I hear is from those of my generation who were born and raised here.
(I’m a US citizen but born in a multilingual family and raised abroad in US-dominated neocolonies. I never underwent the typical US upbringing/socialization, and when I came to live here permanently felt like an “expat” from the rest of the world.)
I don’t claim to speak for younger generations but what I hear from more and more of them isn’t cynicism or defeatism but visceral urgency, coupled with “starting from scratch” in terms of analysis and worldview. So they read, talk, absorb from all quarters and schools of thought, but prime among them are works we would call socialist and others rooted in cooperation, solidarity, antifascism and ecologically sustainable social ownership. They are eager for concepts and perspectives that don’t stem from the government or corporate media as they know those are the Empire of Lies (even if they don’t use VVP’s phrase). They’re looking back on our history and learning ideals such as Serve the People from the Black Panthers—who in turn learned it from the Chinese Revolution. I’ve been to many a demonstration at which all have joined in a vow known by heart, with its telling last line:
It is our duty to fight for freedom
It is our duty to win
We must love and support each other
We have nothing to lose but our chains
With no future under neoliberal capitalism young people here are livid at the billionaire class, are not afraid to condemn them as capitalists and their system as capitalism. Maybe it’s just that here in the pathologically individualist US “our” billionaires are that much more brazen in their toxicity. While no one likes bureaucracy or heavy handed administration anti-government feeling as such is mostly on the right (some anarchist-identifying youth of course manifest a left version). Most I’ve heard talk about government feel it needs to be a tool to address so much of what is decaying or spiraling out of control—the real question in their minds is *how* to wrest it away from the billionaires and Military-Industrial Complex.
The kinds of mutual aid societies developing here are the beginnings of sidelining the government of the rich and the capitalist economy as a whole: “We can’t expect anything good from them, we have to band together and take care of each other”. But. Take this far enough and the corporations and government will intervene to nip any alternative social formations in the bud. This is when class struggle and even class war begin in earnest, as acts of social self-defense. The Powers That Be have been preparing for this for years now.
I don’t know where this will all lead either. I’m just now “retirement age” but with no possibility of retirement in sight as the US is about to reap the whirlwind from all the ill winds it’s sown all our lives. We’re going to go through a wringer here (hello, Weimar USA). But as much as most here discount the people of the US ever wising up things are going to change here, materially and in consciousness. International Workers’ Day, that commie holiday we’ve all be taught to associate with military parades in Moscow? It started here with a general strike on the old folk holiday of May Day. I believe we may see some real and long-overdue rising up, whatever form it will take.

Posted by: Vintage Red | Apr 2 2022 21:10 utc | 277

It matters not what the west says or does anymore. They have effectively used all their “ammo”. It matters what China will do, and if they think that China will ever forget the racist attacks on their citizens here at the hands of western countries; you got another thing coming.
The EU under their bully bosses went yesterday to threaten China, as they did in India, and they were turned around. They went to Iran and Venezuela asking them to pump more oil(sanctioned for decades) and also friends in the gulf oil states, and what happened? Nothing!
China will lose about 4 trillion that the west will confiscate from them, but they like Russia will cut their losses and vastly improve on the 5 trillion they earn from the rest of the world.
If they choose to believe that their wealth is safe in the west, Russia will go it alone and bomb the West with nuclear weapons and we will go to a much deserved hell!
We in north America have become accustomed to killing millions with impunity, but Putin stated most clearly previously: “you will face something you have never seen in your history”. That is us, and so go and put on a helmet and a flax jacket, and join the foreign paid mercenaries who are fleeing to Poland everyday.
Up to now, your great almighty military can’t determine where that one hypersonic missile came from deep inside of Russia. You know, the one that killed 200 mercenaries and had 500 more running to Poland. Inflation, prices gas, electricity and food shortages; We will leave that for now.
P.S. The Russians churning out the khinzal by the thousands and some with nuclear warheads. I will eat my words if I am not correct.

Posted by: Karl luck | Apr 2 2022 21:37 utc | 278

@RJB #272
There is definitely a misunderstanding going on, but clearly not the one you think exists.
Have you ever actually held a bond to maturity? I have. The payout is cash.
Not necessarily literal physical cash on the barrel, but cash nonetheless.
If you deposit $1 million in $100 bills into your checking account, it is cash.
If you take that $1M out of the checking account, it is still cash unless you use it to buy something. Transferring $1M into bitcoin is not cash, but transferring $1M from bitcoin into USD is cash.
You are confusing the ability of a bank to create money such as via the eurodollar mechanism vs. actual money which doesn’t have strings to it. The eurodollar deposit creation mechanism creates a liability offsetting the deposit.

Posted by: c1ue | Apr 2 2022 22:05 utc | 279

Sanctions? Sanctions? We don’t need no stinkin’ sanctions!!! We are us after all.
Yep, the US exempted itself from most of the sanctions it imposed, and fast to, the doc is dated March 24.
https://home.treasury.gov/system/files/126/russia_gl6a.pdf
From the link:
“DEPARTMENT OF THE TREASURY WASHINGTON, D.C. OFFICE OF FOREIGN ASSETS CONTROL Russian Harmful Foreign Activities Sanctions Regulations 31 CFR part 587 GENERAL LICENSE NO. 6A
Transactions Related to the Exportation or Reexportation of Agricultural Commodities, Medicine, Medical Devices, Replacement Parts and Components, or Software Updates, the Coronavirus Disease 2019 (COVID-19) Pandemic, or Clinical Trials (a) Except as provided in paragraph (c) of this general license, all transactions prohibited by the Russian Harmful Foreign Activities Sanctions Regulations, 31 CFR part 587 (RuHSR), that are ordinarily incident and necessary to: (1) the exportation or reexportation of agricultural commodities, medicine, medical devices, replacement parts and components for medical devices, or software updates for medical devices to, from, or transiting the Russian Federation; (2) the prevention, diagnosis, or treatment of COVID-19 (including research or clinical studies relating to COVID-19); or (3) ongoing clinical trials and other medical research activities that were in effect prior to March 24, 2022, are authorized. DEPARTMENT OF THE TREASURY WASHINGTON, D.C. OFFICE OF FOREIGN ASSETS CONTROL Russian Harmful Foreign Activities Sanctions Regulations 31 CFR part 587 GENERAL LICENSE NO. 6A Transactions Related to the Exportation or Reexportation of Agricultural Commodities, Medicine, Medical Devices, Replacement Parts and Components, or Software Updates, the Coronavirus Disease 2019 (COVID-19) Pandemic, or Clinical Trials (a) Except as provided in paragraph (c) of this general license, all transactions prohibited by the Russian Harmful Foreign Activities Sanctions Regulations, 31 CFR part 587 (RuHSR), that are ordinarily incident and necessary to: (1) the exportation or reexportation of agricultural commodities, medicine, medical devices, replacement parts and components for medical devices, or software updates for medical devices to, from, or transiting the Russian Federation; (2) the prevention, diagnosis, or treatment of COVID-19 (including research or clinical studies relating to COVID-19); or (3) ongoing clinical trials and other medical research activities that were in effect prior to March 24, 2022, are authorized.”

Posted by: Bonami | Apr 3 2022 17:55 utc | 280

Posted by: c1ue | Apr 2 2022 22:05 utc | 279
Nope, you are the one not understanding that a euro deposit can only be held in a bank with a European banking license. It is a closed system. Whether a Russian company has a bank account in for example Deutsche Bank, or a Russian bank has a correspondent account in Deutsche Bank, or the Russian Central Bank has a euro account in the Bundesbank, is immaterial when it comes to sanctions vulnerability. Such deposits all can – and will – be frozen by EU regulators. Check out the Wikipedia article on “correspondent account” and educate yourself instead of embarrassing yourself over and over again here with your lack of basic knowledge of how banking works, while constantly accusing others of the exact same thing.

Posted by: Unnamed | Apr 3 2022 23:06 utc | 281

Did anyone see this article in ZH.?
I Guess, this stuff is hard to get into the “failed state” as of late.
Ukraine Announces Million Dollars Reward Per Russian Helicopter, Fighter Jet, Warship
Ukrainian farmers have been stealing tanks and other Russian military equipment with their tractors. Videos have surfaced online in recent weeks, and the question many have asked is what happens with all the captured war machines?
It just so happens that the Ukrainian parliament (also known as Rada) passed a new measure rewarding anyone, even Russian soldiers, to turn over equipment to Ukraine for a reward.
“For a helicopter – 500 thousand dollars, a tank – 100 thousand, respectively. If, for example, someone is ready to come to us by plane – it’s a million dollars,” the first vice-speaker of the Ukrainian parliament Oleksandr Kornienko said in a statement Saturday.
Here’s a complete breakdown of Ukraine’s reward system for the voluntary transfer of Russian military equipment to the Ukrainian Armed Forces (all prices are in USD):
Combat aircraft (fighter and assault aircraft) – 1,000,000;
Combat helicopter – 500,000;
Reactive volley fire system – 25,000 – 35,000;
Tank, ground artillery (self-propelled) – 100,000;
Infantry fighting vehicle (landing), armored personnel carrier, armored reconnaissance patrol vehicle – 50,000;
Military vehicle (truck, specialized), military tractor, military engineering vehicles: reconnaissance, demining, mine barriers, bridges, fencing, for paving roads, for earthworks, to overcome water obstacles – 10,000;
Ships of 1st or 2nd rank – 1,000,000;
Ships of 3rd or 4th rank – 500,000
Ships of military (auxiliary) support – 200,000;
Ships of small combat (reconnaissance) purpose – 50,000.
Kornienko said Russian troops would be motivated to hand over the weapons to “replenish their financial status” and their “misunderstanding of the meaning of why they are dying.” He added: “the reward tool will work.”
This is certainly an innovative way to buy weapons at a discount. Ukrainian farmers stand to make a killing.

Posted by: Kim | Apr 4 2022 11:51 utc | 282

How will the Neocons react to this???
Russia and its closest partners should build their own system of protection against global financial risks, independent of the IMF and the United States, EAEU Minister for Integration Glazyev said in an interview with RIA Novosti:
▪️ increase the share of payments in national currencies and develop your own payment system for this, similar to SWIFT
▪️ instead of the existing gold and foreign exchange reserves in dollars and euros, which can be frozen at any time, create an independent reserve institution for foreign exchange transactions
▪️ introduce a tax on income from the sale of assets by non-residents, and in the event of a company leaving the country, transfer its enterprises to the ownership of labor collectives
▪️ give countries the right to restrict the export of capital
▪️ legalize the use of cryptocurrencies for international payments
▪️ to issue a bank card that will unite the payment systems of the BRICS countries: Chinese UnionPay, Brazilian ELO, Indian RuPay and Russian “Mir”
News Syndicate

Posted by: Kim | Apr 4 2022 12:17 utc | 283

The reason Gulf refineries need Urals is not due to diesel. It is due to condensing capacity and the size of their distillation towers. Light crudes require large diameter towers and huge real estate devoted to condensing capacity. Gulf refineries were set up to run Venezeulan Pilon, Mexican Maya, and Arab Heavy, and are equipped with cokers to deal with the large amount of heavy resid left over after vacuum distillation. I suspect if this continues, the Gulf will go back to importing Arab Heavy and Urals will head to India. Which means the supertankers will now have to go around Africa again and will be passing each other. So transportation costs will go up.
TL;DR: This is not something that can be fixed easily.

Posted by: JamesD | Apr 4 2022 18:55 utc | 284

Question: What will the Moscow exchange do with all the Euros that pile up?

Posted by: JamesD | Apr 4 2022 18:57 utc | 285

@Stonebird | Apr 2 2022 16:03 utc | 266
Quite disappointing to learn that you are following Riley Waggaman aka Edward Slavsquat and Russia Insider. Pure trash.

Posted by: Vayezatha | Apr 5 2022 23:27 utc | 286

Posted by: Unnamed | Apr 1 2022 17:08 utc | 20
You are 100% right that the Russians have backed down on Ruble payments. Because now Russians in the private sector will have to accumulate Euros in exchange for Rubles. If payment was really in Rubles, then the EU gas buyers would have to find the Rubles themselves against Russian reluctance to accumulate Euros (and sanctions). Very difficult.
Honestly, a smarter move would have been demanding payment in Chinese RMB with the benchmark price in Euros. Then the exchange would have been RMB -> Rubles with no accumulation risk.

Posted by: Jake the Snake | Apr 7 2022 3:01 utc | 287

@Jake the Snake #287:

You are 100% right that the Russians have backed down on Ruble payments.

You are 100% wrong. Russians are not backing down. “Russians in the private sector” won’t be “accumulating euros” because they can’t—Russia has introduced currency controls. The euros sold by Gazprombank on the Moscow Exchange will be bought by: (a) foreign companies that sell products and services in Russia and need to repatriate their profits, (b) Russian importers that will use those euros to pay for their imports. In both cases, the euros end up abroad.

Posted by: S | Apr 7 2022 4:33 utc | 288

I would like to read comments and opinions on the possible/probable results of the Republican takeover of the US Congress in the November mid-terms

Posted by: Manuel | Apr 8 2022 20:01 utc | 289

@ manuel
As always, the fear is that the next bunch might actually be competent at what it’s doing.

Posted by: malenkov | Apr 8 2022 21:07 utc | 290

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