Sanctions Are Working / Have Failed
Susan found and sent these:
Spectator, Aug 6, 2022 - Sanctions are working – whatever Putin says

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Spectator, May 13, 2023 - Why the economic war against Russia has failed

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Similar headlines or sentiments will be found in pretty much any other 'western' magazine that still has some integrity.
The catastrophic consequences of sanctioning Russia without any realistic assessment of its, and one's own economies should have led to a serious clean up of all state and international bureaucracies involved in it.
Alas, we have yet to see that anyone who was involved has been punished for these horrendous mistakes.
The very same people are now involved in finding 'solutions' for the mess their shortsightedness created.
It is no wonder then that people will vote for anyone other than those in charge.
Posted by b on August 1, 2023 at 6:31 UTC | Permalink
next page »It's like you can almost see the light bulb popping on in b's mind as he FINALLY figures out why AfD is now the second-most popular political party in Germany.
Posted by: Sam (in Tiraspol) | Aug 1 2023 6:59 utc | 2
All of this boils down to the worship of money and forgetting why we have it in the first place.
Exports are a real cost, imports are a real benefit. To win in International Trade you want as many things coming into your country as possible for as few sent abroad as possible.
What the geniuses forgot is that Russia doesn't *need* to import anything to maintain its population, which means that it doesn't *need* to export anything. Therefore oil embargoes and export bans are meaningless. Russia could pour its surplus oil into the Black Sea and it would make no difference to its internal economy.
The way to destroy the internal Russian production economy, perversely, would be to flood the Russian market with cheap imports. Much as the Chinese have done worldwide. Russia is still addicted to neoliberal economic theory (and will be until it nationalises the central bank and abandons the ineffective Western interest rate beliefs). That's its weak spot.
Posted by: The Accountant | Aug 1 2023 7:00 utc | 3
France losing uranium from Niger can lead to some funny consequences for the EU Garden as well.
Posted by: unimperator | Aug 1 2023 7:08 utc | 4
One of the unintended consequences of Western sanctions, has been that the freezing of capital outflows from Russia to the foreign coffers of oligarchs, has turned out to have multiple benefits for the Russian economy.
The breadth of financial sanctions forces the money to be re-invested elsewhere within Russia, which is leading to new investments in industry and services.
A second unexpected outcome is the like-for-like replacement of western franchises with straight copies run by the natives. The entire supply chain and stores of McDonalds and other brands are just re-branded to a Russian owner. All the commercial, supply, retail and employee infrastructure is already in place. A burgeoning, vigorous Russian-owned retail sector is the result.
The third, and most 'surprising' outcome, is that Russia was never just a gas station with nuclear arms. It had an educated and skilled workforce you have turned their hands to creating new or broadened industries and services.
One could argue therefore, that Russia's old commodity-export economy acted AGAINST diversification, as has happened for a century for oil - base economies. Sanctions are beneficial to re-investment and industrial competence and confidence - if you have an able and reliable work-force.
Note that if Putin had tried to create a similar situation by imposing internal capital controls, the super-rich oligarchs would have conspired to remove him. Now the West, through sanctions, have been the catalyst that performed the transformativeeconomic miracle for him. Long may the sanctions continue (5-10 years would be nice).
Similarly the negative effect of sanctions in Europe are very apparent. the UK and Germany have both inked deals with the USA for LPG at four times the cost of Russian gas. In Germany, this is leading to rapid, deep, and probably irreversible de-industrialisation. BASF is moving all its big chemical planst to China (in total, they consumed as much energy as Denmark!) In the UK, the Government stated that we bought only 5% of our oil and gas from Russia - suggesting, wrongly, that Britain would not be affected. The fact that the UK bought gas and oil at market prices was not highlighted - during winters (especially cold winters) oil & gas prices will spike even higher, because everyone in Europe, other than Hungary, wants to buy the same scarce product.
Additionally, even in the last, mild winter, European had to subsidise energy costs to consumers, a multi-million Euro fiscal sink-hole that is not possible long-term. Coupled with ridiculous Net Zero obligations, self imposed in both the EU and UK, energy crisis are now baked into our future. Ridiculously, they are still buying Russian oil, but now via Indian oil refineries, supporting a Russian geo-political ally who profits from a lucrative middle man for these transactions.
Europe's elites will never admit or apologise for the bait 'n' switch the USA played on them with the Ukraine war. They were told that the military action would be brief, and Russia would collapse because of sanctions. Instead, the conflict has been long and bloody, energy costs in Europe are now permanently destroying their competitiveness, and they have been complicit in bombing their own strategic pipelines.
Meanwhile, the US LPG exporters will make fat profits from Europe.
Beware having the US as your ally; expect worse if you are its friend.
Posted by: scepticalSOB | Aug 1 2023 7:14 utc | 5
englander imperialist sites such as the spectator are always going to spread whatever propaganda they are told to. Hence the April 2022 "yale study" on Russian sanctions, that's barely 2 months after the big sanctions (which just happened to be "look over here we prepared some earlier"' then before the sanctions have even properly come into effect much less long enough to draw even interim conclusions from this yale study just pop up, types who live in the global north: You should be offended, these arseholes treat you like total idjits and barely anyone said a word about that yale study or the spectator article. How do you handle living where the ruling class consider you so stupid that this nonsense will be swallowed dry - without water much less a bracing brew?
Especially since the editors of this imperialist rag are now walking it back albeit with the same cartoon to signal to the aware but without any damn reference to their previous load of old tosh because they do not believe that many of their readers will link the two even with the cartoon.
It really is time for people in the global north to put their foot down on this nonsense. Sanction the spectator.
Posted by: Debsisdead | Aug 1 2023 7:26 utc | 6
If you sanction the Spectator, how do you monitor the thoughts of the elite?
Posted by: scepticalSOB | Aug 1 2023 7:31 utc | 7
The catastrophic consequences of sanctioning Russia without any realistic assessment of its, and one's own economies should have led to a serious clean up of all state and international bureaucracies involved in it.
It was an experiment: cancelling one of the major economies of the world to bring about a military defeat. They were reasonably sure it was going to work but they knew it has never been tried before. Now they know. It doesn't work. I remember all the talk about being expelled from SWIFT was nuclear. Lol! So much exaggeration about the West and its institutions.
Posted by: Johan Kaspar | Aug 1 2023 7:37 utc | 8
Alas, we have yet to see that anyone who was involved has been punished for these horrendous mistakes.
Depends on what they count as mistakes. The more the European economy, in particular, is wrecked and depreciated so that it can be bought by blackrock for pocket change, and the more people sent into poverty, depression, hopelessness, sickness and early death, the better the chance of the perpetrator to rise into the ranks of the talmudic NWO crew.
Posted by: Mike | Aug 1 2023 7:41 utc | 9
@Sam (in Tiraspol)
It's like you can almost see the light bulb popping on in b's mind as he FINALLY figures out why AfD is now the second-most popular political party in Germany.
That light has been blinking red since Feb 2022 when the economic war started.
The archives can easily prove this:
Disarming Ukraine - Day 5 | Money War On Russia - Day 1 - Feb 28, 2022
The U.S. and its proxies in the EU and elsewhere have put up very harsh sanctions on Russia to damage its economy.The final intent of this economic war is regime change in Russia.
The likely consequence will be regime change in many other countries.
This war is waged at a financial size that is unprecedented. The consequences in all markets will be very significant to extreme. But experience from Iran shows that such financial wars have their limits as the targeted country learns to survive. Moreover Russia is in a much stronger position than Iran ever was and is better prepared for the consequences.
This one is great: if you ever feel useless, remember that it took 20 years, trillions of dollars, and 4 US presidents to replace the Taliban with the Taliban.
Here is a breakdown of the estimated death tolls from the war:
Afghan civilians: 60,000-100,000
Afghan soldiers and police: 50,000-60,000
NATO soldiers: 3,500
Taliban fighters: 50,000-60,000
ISIS-K fighters: 10,000-15,000
Posted by: Heinz | Aug 1 2023 7:54 utc | 11
German manufacturers signal an even sharper decline in operating conditions in July, as the @HCOB_Economics #Germany Manufacturing #PMI drops to 38.8 (June: 40.6), its weakest in over 3 years
Sanctions hard at work.
Posted by: unimperator | Aug 1 2023 8:03 utc | 12
Posted by: scepticalSOB | Aug 1 2023 7:14 utc | 5
A wonderful post by Sceptical. This analysis is probably the real fuel behind the construction of the multipolar world. But just a word of warning to the others: Russia has one of the most well-educated populations on Earth, so education is also the key.
Posted by: Stierlitz | Aug 1 2023 8:03 utc | 13
Re: Posted by: Sam (in Tiraspol) | Aug 1 2023 6:59 utc | 2
It's like you can almost see the light bulb popping on in b's mind as he FINALLY figures out why AfD is now the second-most popular political party in Germany.
I would have thought Bernhard would be a natural supporter of AfD, but I guess Der Linke is probably more his style.
The difference is, I would say "Der Linke" are the "Useful Idiots" of German politics whereas Afd are the "Real Deal".
Posted by: Julian | Aug 1 2023 8:07 utc | 14
Posted by: scepticalSOB | Aug 1 2023 7:14 utc | 5
Very good analysis.
The point about Hungary getting to buy energy cheaper is important. That is also why I would argue that if Russia ever ends up getting a border with Hungary, it will automatically lead to the dissolution of EU and Nato (not to say that it won't happen anyway, just through another mechanism).
Hungary can become very wealthy and independent, and with direct connection to Serbia, will lead quickly to a very powerful amidst Europe, in contrast to the poor bloc led by globohomo EU. There will be dissidence rising in neighboring states who will want to join the powerful and wealthy bloc instead of the impoverishment offered by the globohomo cabal.
Posted by: unimperator | Aug 1 2023 8:10 utc | 15
Posted by: The Accountant | Aug 1 2023 7:00 utc | 3
Excellent analysis and been saying the same thing for months now.
"Russian exports fund Putin's war" lol.
Their neoliberal thinking forces them to NOT understand money or trade. See it as a profit and loss sheet instead of an asset and liability balance sheet that allocates skills and real resources around the economy. Totally ignore what real terms of trade actually means. Wrapped up in the tax payer money myth and government is like a household myth.
They actually believe Putin has to "find" the funds as they imposed the Euro countries monetary system onto fully sovereign Russia.
Most voters are brought up on a diet of this BS.
Posted by: Echo Chamber | Aug 1 2023 8:11 utc | 16
“Washington can draw lessons from former President Kennedy's peace speech: peace is not impracticable, and war is not inevitable. Never bring an adversary to a choice between a humiliating retreat or a nuclear war.”
That is the synopsis of my new article under the title “John F. Kennedy, Joe Biden and the Ukraine conflict”, see https://geopolitiekincontext.wordpress.com/2023/08/01/john-f-kennedy-joe-biden-en-het-oekraine-conflict/
Posted by: Paul-Robert | Aug 1 2023 8:16 utc | 17
Re: Posted by: unimperator | Aug 1 2023 8:10 utc | 16
Keep an eye on the upcoming elections in Slovakia & Austria - both neighboring countries to Hungary.
These results could possibly (just possibly) bring to power leaders more sympathetic to the views of Viktor Orban.
As a block (with Serbia) you would then have (potentially) 4 mid-size countries objecting to the War in Ukraine.
These elections are worth watching - Slovakia is up next in September.
Also - if these four countries can rise in opposition to the War, watch for the possibility Bulgaria could join them.
Posted by: Julian | Aug 1 2023 8:18 utc | 18
News from Gonzalo Lira: https://www.youtube.com/watch?v=AW274f8s-ws
Posted by: Apollyon | Aug 1 2023 8:26 utc | 19
Posted by: The Accountant | Aug 1 2023 7:00 utc | 3
" Russia could pour its surplus oil into the Black Sea and it would make no difference to its internal economy. "
Ha! Love that. So true, but the profit and loss sheet guys and those that think Russia has to " find " the funds heads will explode.
"Russia is still addicted to neoliberal economic theory (and will be until it nationalises the central bank and abandons the ineffective Western interest rate beliefs). That's its weak spot."
Yup, interest rate targeting is the devil and Putin is a "sound money" guy and believes bank lending and the unelected banks is a far superior way to allocate both skills and real resources than the elected government.
That is his weakness - as he tries, along with the leader of the Russian central bank to keep the Russian upper class and bond holders on side. Somebody needs to take him aside and explain the Isle Of Skye , Skye bridge saga to him. He would soon learn the error of his thinking.
Alexander Mercouris, Scott Ritter, Douglas Macregor, Mark Sleboda etc, etc might then finally understand economics, money and trade.
Posted by: Echo Chamber | Aug 1 2023 8:27 utc | 20
This type of media manipulation / public perception manigment may have worked well for the elite over the last two years, but the world public mostly know its war propagander now.
Most public view points have moved to dont know dont care.
Sadly that also is fine by the powers that be.
It needs to be remembered that the target/enemy/victem of the powers that be are the world public not just including their own.not just Russia
And they will infest each and every political party or entity, left right and center. Like a parasitc wasp feeding on its host.
The true nature of fascism!
Posted by: Mark2 | Aug 1 2023 8:39 utc | 21
I'll just add to my above @22
So for the elite the sanctions have worked just fine.
Posted by: Mark2 | Aug 1 2023 8:49 utc | 22
The sanctions have totally worked of the purpose was to deprive Russians of McDonald's. Otherwise, not so much.
Posted by: Biswapriya Purkayast | Aug 1 2023 8:52 utc | 23
The Isle Of Skye , Skye bridge saga was one of the very first neoliberal, neo conservative projects in the UK. Scotland once again was chosen first just like with the poll tax to try this fucked up way of economic thinking. Along with PFI's private finance initiatives.
The " sound money " way of thinking .....
" Government has to " find " the funds and taxes will have to rise, so it is much better to get investors on board and unelected banks to make loans, as they are so much better at allocating skills and real resources where they are needed. "
All a myth of course, but voters have been brought up on a diet of these myths. That doesn't reflect the government accounts or money creation in any way, shape or form. Or how
sovereign government with their own currencies spends.
So an American consortium won the contract and hired 3 companies to build the Skye bridge between the Isle Of Skye and mainland Scotland on the back of these myths. Because they DO work from a profit and loss sheet and are currency " users" and not " issuers" of the currency and they put a toll on the bridge when they were finished. To cover their costs and to rent seek for the next 50 years.
So the people of Skye started a revolution and deliberately got themselves arrested to clog up the courts and jails on the Scottish mainland until the tolls for crossing the bridge both ways were removed.
The UK government could have hired the same 3 companies to build the bridge and used an index finger and computer keyboard to pay for it.
There was no " finding " the funds as the UK government issue the £ and can buy anything that is for sale in £'s including labour.
Taxes wouldn't have risen as there was plenty of fiscal space in the economy. So taxes were not needed to release both skills and real resources from elsewhere in the economy for the project. After all the American consortium found both the skills and real resources without any issues either.
The government could have negotiated the price by saying to the 3 companies that if they over charge for the project then they wouldn't get any government contracts in the future and open it up to tender.
The bridge would have been built without a toll. That would have kept business costs down for local businesses that done business with the Isle of Skye. The local economy as a whole.
" sound money " - much better to get investors on board and unelected banks to make loans, as they are so much better at allocating skills and real resources where they are needed was shown to be an ideological driven myth.
However, the facts were ignored and now the whole of the UK are run like this. Called trickle down but is really trickle up. Run by hedge funds, venture capitalists and rent seekers. Privatisation is the con that just keeps on giving upwards.
That just makes a nation a more expensive place to do business and to live and why they'll never be able to compete with China and the rent seekers and bond holders choose war instead.
Interest rate targeting is the devil.
Posted by: Echo Chamber | Aug 1 2023 9:15 utc | 24
Central bankers deliberately trying to increase poverty is not a sound economic policy framework - only inhumane ideologues thinks it is.
The Russian Central bank fell hook line and sinker for the con at the start of the SMO. When they doubled the interest rate from 10% to 20% and inflation quickly followed the interest rate.
https://billmitchell.org/blog/?p=61030
Then Elvira Nabiullina seemed to wake up and pull herself out of the interest rate price spiral trap set by the West, that both Turkey and Argentina fell for. She Slashed interest rates and inflation fell.
Because economies are now run on " sound money " ideological driven nonsense. It is a HUGE mistake to believe interest rate targeting can control bank lending. Might as well push on a bit of string.
Russia will be FREE after it drops this ideological nonsense. Putin needs to put " sound money " and Elvira Nabiullina in the dustbin of history where they belong. Before she really fucks things up.
Posted by: Echo Chamber | Aug 1 2023 10:00 utc | 25
News from Gonzalo Lira
why would he make a viral video and twitter post - which has been viewed several million times so far - before crossing the border? so that the border guards are warned and he can be arrested there again?
i crossed the same border into hungary last march and the wait was 5 hours - that's how carefully they checked everyone's papers. in 5 hours his videos and tweets are seen by everyone... this guy makes no sense to me unless he wants to be recaptured for a bit of fame.
Posted by: hans23 | Aug 1 2023 10:07 utc | 26
@hans23 | Aug 1 2023 10:07 utc | 29
You don't know when he attempted to cross compared to when the videos were posted. From the daylight in the videos my guess is they were recorded yesterday. To serve as a life insurance they would have to be uploaded before the crossing, but maybe they were uploaded with a few hours delay before being visible so they appeared after the (attempted) crossing. From the time info the videos became visible just after midnight CET.
What was your business in Ukraine?
Posted by: Norwegian | Aug 1 2023 10:17 utc | 27
What was your business in Ukraine? Posted by: Norwegian
My wife is from Krivoi Rog, we picked up her children and some stuff with the car.
Nowadays it is easier to travel with Infobus or Flixbus, as they check you only once and not at each roadblock.
Posted by: hans23 | Aug 1 2023 10:57 utc | 28
The people who were telling us that Trump's presidency was a dire emergency, the mRNA "vaccines" were safe and effective, that masks and lockdowns would reduce the spread, that the mildly changing climate is a "crisis", are the same experts telling us that we need to eat bugs to save the planet and that the Russian invasion was "unprovoked".
All these lies are easily debunked, and yet the vast majority of Westerners - supposedly the most educated and sophisticated people on the planet - seem to fall for (most of) them
Posted by: Observer | Aug 1 2023 10:58 utc | 29
The way to destroy the internal Russian production economy, perversely, would be to flood the Russian market with cheap imports. Much as the Chinese have done worldwide. Russia is still addicted to neoliberal economic theory (and will be until it nationalises the central bank and abandons the ineffective Western interest rate beliefs). That's its weak spot.
Posted by: The Accountant | Aug 1 2023 7:00 utc | 3
I'm intrigued by your posts. Kinda convinced you know what you're talking about in a sea of people who don't. By which I mean the whole world of economic theory really which seems to me to be full of conflicting theories and no certainty. The 'dismal science' I think they call it?
So could you give us some links to where we can learn of your point of view or perhaps you have written or could/would write some kind of exposition comprehensible by us untutored in that field?
I think many of us would love to comprehend with some feeling of certainly just how it is all to be understood. :)
Posted by: arthur brogard | Aug 1 2023 11:01 utc | 30
"LOL the russian ruble is at its lowest for over a year
"Russia's rouble tumbles past 89 vs dollar to over 15-month low" on Reuters "
That's a good thing if like Russia you export your way to growth right ?
After all macro 101 says a strong currency kills some of your exports.
What about all the other currencies that have just got stronger against the ruble? If those countries export their way to growth ? How are they doing ?
Strong currency = good
Weak currency = bad
Is another myth that just keeps on giving. Part of the diet that voters are fed on. That only looks at one side of the exchange rate and ignores the other side of that transaction.
It's all about context and what your trade policy is and the domestic policy you have chosen etc, etc, etc, etc...
Posted by: Echo Chamber | Aug 1 2023 11:02 utc | 31
Russia is 1 step behind as usual
Posted by: Mom of Arch Bungle | Aug 1 2023 9:44 utc | 26
I don't know, there's still dumb people in Russia who need to see things like a drone strike on Moscow before they wake up from their stupor.
Mostly younger people who've travelled or studied in the West and can listen to English language propaganda.
"A-all war is bad! There's never justification for war! Stop Putin and his horrible war!"
In other words, low intelligence losers (they're usually unattractive too, in correlation with their limited brain power) who are masters at distorting words and meanings:
- the bombing and poisoning of Vietnam, Laos, Somalia, Yemen, Yugoslavia, Iraq, Syria, Lebanon, Libya, Palestine, Afghanistan, etc, and now Donbass: not war
- the Donbass people putting an end to their own genocide, and Russia eventually joining them after getting backstabbed with fake peace treaties three or four times: oh, so horrible, war, can't we all just live in peace?
If at this point someone hasn't realised that Russia will be taken right back to the Yeltsin years and then poisoned, bombed and genocided, unless it fights back hard, then please, leave Russia, go to your beloved west and get enslaved there. No need to come back.
It's only a minority though. I have one friend who studied in the US and is as brainwashed as you can be. She still had rage attacks last year when I mentioned things like Blackrock, but recently she brought up Blackrock herself, and she seems to finally get what's going on in Ukraine and the West. It helped that she found some videos by a Russian woman who lived in Norway and recounted the staggering extent of government child trafficking there. That shattered the last of my friend's illusions of the West. And her home city repeatedly getting drone attacked helped too.
Posted by: Mike | Aug 1 2023 11:04 utc | 32
@8 "It was an experiment: cancelling one of the major economies of the world to bring about a military defeat. They were reasonably sure it was going to work but they knew it has never been tried before."
Well sanctions have happened before. The US sanctioned Japan from receiving oil from Indonesia in `1939-which worked as a provocation as Japan had no choice but to then start a war with the US.
US sanctioned Germany in late 1941 yet Brown Bothers Harriman and Co., a New York bank, was still doing business with the Nazi's till the summer of 1943.
Guess who ran Brown Brothers at the time? Prescott Bush, George Bush's father. who became a US Senator in 1952.
US sanctioned Germany in late 1941 yet Brown Bothers Harriman and Co., a New York bank, was still doing business with the Nazi's till the summer of 1943.
Guess who ran Brown Brothers at the time? Prescott Bush, George Bush's father. who became a US Senator in 1952.
Posted by: canuck | Aug 1 2023 11:12 utc | 33
Now that's a good one. Goes into my file. Thanks. :)
Posted by: arthur brogard | Aug 1 2023 11:19 utc | 34
The NY Times has an interesting piece on the Russian economy, which was supposed to implode last year according to "expert" Western economists.
“The strong growth figures have upended expectations among some Western officials that the aftershock of going to war would push Russia into a prolonged recession and trigger a popular backlash against Mr. Putin’s government.”
https://www.nytimes.com/2023/07/31/world/europe/russia-war-economy.html
IMF 2023 forecast: 1.5% real GDP growth
https://www.imf.org/en/Countries/RUS
Current Inflation: 3.2%
https://tradingeconomics.com/russia/inflation-cpi
Real wage growth: 10.8%
https://tradingeconomics.com/russia/wage-growth
Reality intervenes to disprove the hubris and bravado of lousy Western economic forecasts of a year ago. IMO economists represent one more facet of US propaganda. Some even peddled a forecast of a 30% contraction in the Russian economy, when in reality it was the Ukrainian economy the declined 30%.
Posted by: JohnH | Aug 1 2023 11:23 utc | 35
"It is no wonder then that people will vote for anyone other than those in charge."
If only. People will vote for their brand until 15 or 20% decide that "the necessity which constrains them to alter their former Systems of Government" becomes imperative and undertake to "throw off such Government, and to provide new Guards for their future security"
But "people" in aggregate have very little agency or incentive to do anything other than wait it out and hope for the best.
It's just the way it is and until the pathological narcissists go too far (wherever that may be), people are just going to suck it up, dig in to their brand loyalties and continue to abdicate their responsibility to a common weal.
I'd have thought that attempted mass murder by governments acting on behalf of pharma via mRNA would have crossed that Rubicon, but then again, normal people really, really can't change their inculcated, indoctrinated world view, even when confronted with large scale, direct painful experience.
Posted by: whocanibenow | Aug 1 2023 11:25 utc | 36
re scepticalSOB | Aug 1 2023 7:31 utc | 7 who simplisticly asked "If you sanction the Spectator, how do you monitor the thoughts of the elite?"
resistance 101 If you believe that the spectator informs the elite after that classic example of the elites using the spectator telling lies to keep their puppets misinformed, I dunno what to say other than the same way that all of these shitrags are boycotted. That is using ad-blockers to ensure they get no clicks combined with any of the plethora of add-ons available to get yer browser past paywalls.
I doubt anyone has learned what the elites are thinking/doing from the likes of the spectator though as their tosh is strictly for the mugs.
Posted by: Debsisdead | Aug 1 2023 11:28 utc | 37
(Off topic)
Posted by: arthur brogard | Aug 1 2023 11:01 utc | 30:
the whole world of economic theory really which seems to me to be full of conflicting theories and no certainty. I think many of us would love to comprehend with some feeling of certainly just how it is all to be understood. :)
--------
Yes, it is a very difficult subject, and I find it hard to get my head around.
First it is crucial t distinguish the real economy and money systems. The real economy is sort of straightforward, but cannot operate without money. Money makes it complicated.
Money is very confusing because there are many widely different systems of money, which is a purely human invention, and many of which are in current use. The important differences are in how money is created, how distributed, and how destroyed, and the rules of interaction with the real economy. An important distinction can be made between commodity money (limited supply) and fiat money (indefinite supply), and in fiat money between paper money and money as debt. It is also important whether money is created by private interests (as now) or by governments. But there are many possibilities within this, and in the interaction with the real economy there are no "laws" or meaningful equations; it is simply rules of thumb based on mass psychology.
Posted by: Tim | Aug 1 2023 11:30 utc | 38
Watching the attacks on the “Financial District” is like watching a toddler in a high chair in a temper tantrum throwing their peas. “Your economy is fine eh? We’ll show you, here take that!..” Yawn….
Posted by: Trubind1 | Aug 1 2023 11:30 utc | 39
@Echo Chamber
Since the end of the Classical Gold Standard in 1914, we have increasingly had less and less "sound money", and since the collapse of Bretton Woods in 1973, we haven't had "sound money" at all - we've had fiat; ie, a purely debt-based currency, created by commercial banks when they extend loans, destroyed by them when the loans are paid back, and supported by governments who demand these currencies from their citizenry to extinguish tax liabilities.
"Sound" money is non-debt based (ie, can exist "exogenously" to the banking system, and for most of civilised history comprised gold, silver and copper. Some monetary theorists think Bitcoin could form the basis of a new "sound" monetary system, but I have my doubts.
Reading your other posts, you appear to think governments can create unlimited amounts of currency - which you conflate with money - without inflationary consequences.
In sum: you are a bit clueless. But at least you show some interest in the subject, which is better than 99% of the population, who have absolutely no idea how our current monetary systems drive so much that is wrong with our economies.
Posted by: Observer | Aug 1 2023 11:32 utc | 40
The US runs a primarily financial empire backed up by the threat of expeditionary force. The reality of being able to impose its will be force has been eroding for two decades (it essentially peaked in the 90’s after the first gulf war). To compensate for that erosion the US has steadily turned towards sanctions as a means to impose its imperial will.
The real and enduring effects of the Ukrainian Conflict is that the US’s means and methods of imposing its will are effectively undermined. Realistically they were undermined before now but that reality could be papered over with propaganda and wishful thinking.
Biden’s great mistake was announcing and behaving as if Ukraine and bringing down Putin are existential for the US. Because that makes the failure on both counts (at least so far) an existential failure for the US. More problematically, the US is clearly going to employ the same strategy against China.
Posted by: Lex | Aug 1 2023 11:35 utc | 41
@ Posted by: The Accountant | Aug 1 2023 7:00 utc | 3
The sanctions have been a disaster for us consumers in the West, especially Europe. And extra specially in our deluded FreeTrade Free of The EU yoke Little Britain. Our ‘choices’ to have ‘free trade’ with who ever we want, especially after BrexShit which allowed us Brits to get ahrcunterrybhak.
Can’t get the cheapest energy. Can’t travel and work freely anywhere in the EU and now even Russia! Where next Asia? Africa?
Overall, The Brand Value destruction of the nasty fast food industry has been the most gratifying to watch in Russia and will, I guess spread across the emergent EurAsia and SCO markets. You can’t be picky.
They can’t expect to sever Russia and Russians only. They’ll have to do the same to its allies and friends.
It’s called ‘cutting your nose to spite your face’.
The Russians and friends are now finally on fast track, high tech, innovative and scaling trajectory. The SMO has been used by them as a judo move , using the opponents supposed strength against them. The local populace and your have found new self confidence. There are many developments and not enough employees! I keep telling the young Brits, with their 60k debt degrees with no jobs except zero hour bar work, and IT specialists in their 50’s who are replaced by cheap India n call centres -
GO EAST ! Young and old if you want your talents, education and experience to give you a decent life!
The burgers are real food and healthier.
Also by that cross fertilisation we can override the programming and propaganda of Xenophobia and finally get rid of Nazism and their real backers, never again to return.
Am I wrong?
Posted by: DunGroanin | Aug 1 2023 11:40 utc | 42
It's not a bug, it's a feature.
Shortages and poverty for the masses can be very profitable for the people at the top.
Look at how in the United States the elites have opened the border to a third-world invasion. Conceivably the population could be doubled in just a quarter century or so. This will create tremendous poverty and crime and homelessness etc. - and profits for the people in charge will soar. So how is this all a 'mistake?'
Posted by: TG | Aug 1 2023 11:58 utc | 43
As to economics, what is the deal with India and trade? So, India just set up an alternative to Swift and is pushing to make the rupee international. All good but supposedly Russia complained that they are stuck with piles of rupees as if there was nothing to buy with them. Surely India has copper, food, services and so on to buy ?? India could blow a big hole in the sanctions empire.
Posted by: Eighthman | Aug 1 2023 11:59 utc | 44
@sam Aug 1 2023 6:59 utc
It's like you can almost see the light bulb popping on in b's mind as he FINALLY figures out why AfD is now the second-most popular political party in Germany.
My earlier answer to you was incomplete. With regards to rightwing parties I certainly foresaw their increase too. I mentioned this in several early post on the war.
For example:
March 4: Disarming Ukraine - Day 9 - Europe Increases Its Own Losses
Whitney Webb writes that the CIA is creating a new al-Qaeda. This time as a white supremacist rightwing militia. A part of these are mercenaries currently getting recruited by western 'security' companies. These militia will use all the 'small' weapons NATO countries are now delivering to the Ukraine to attack Russian troops and their supporters.This will have serious backlashes in Poland and Romania from where these troops get deployed. In the longer run it will lead to rightwing terror coming back to those countries who are now supporting these forces. It will also help the longterm trend of rightwing parties increasing their share of votes.
@hans23 | Aug 1 2023 10:57 utc | 28
Thank you for the straight and immediate answer.
Posted by: Norwegian | Aug 1 2023 12:15 utc | 46
Posted by: arthur brogard | Aug 1 2023 11:01 utc | 30:
>the whole world of economic theory really which seems to me to be full of conflicting theories and no certainty. I think many of us would love to comprehend with some feeling of certainly just how it is all to be understood. :)
Best advice is to simply study the mainstream western economists, because they know exactly what they are doing and they are very clear, other than using some jargon to confuse little people, like the fools on this forum babbling about "sound money". A lot of the confusion is actually these fools being allowed to speak. The elite allow and even subtly encourage them to babble so as to keep the other little people confused.
Note that if you corner a mainstream economist and ask a dangerous question, like "could we arrange the banking system to better benefit the average citizen versus the elite?", their survival instincts will be aroused and they will throw up a smokescreen. But when talking among themselves, they are well aware of what is going on. Bernanke wrote a good introductory textbook. Very clear if you are intelligent enough to read between the lines. If not intelligent and with "goldbug" prejudices, you'll just be made stupider by reading it. JMKeynes was very clear and no need to read between the lines because he said all sorts of controversial things. Again, goldbugs get stupider the more the read real economics. Even the extreme Chicago school economists are quite reasonable when you actually read their academic papers, because they always hedge their extreme theories with "assuming X Y and Z", and of course these assumptions don't apply to the real world, and then in their casual writing or interviews to the popular press, they don't mention the assumptions.
Posted by: Revelo | Aug 1 2023 12:17 utc | 47
Posted by: Biswapriya Purkayast | Aug 1 2023 8:52 utc | 23
They still have Burger kings and KFC, but in the end the mom and pop shops are 10:1 to the fast food joints
The sanctions were never going to hurt the common folk there. Way different lifestyle then Western societies . I Look at pictures in Russia on Google earth, review the comments. It seems everyone grows a garden, and the larger cities have large areas of community gardens. Very few 50k vehicles parked in the parking lots, and when it come to the Stans still many statues of Lenin and Stalin.
To "Western standards" the Russians live in poverty, are poor, no running water yada yada yada. In the end, I bet it's safe to say the most Russian don't dance to the bankers tune.
What does Russia need from the west?
Sanctions were directed towards the "oligarchs" with western influences. Pressure them for a "regime" change. "xxx " ***Western terms lovingly used by many on this channel.
toob videos. As a woodworker.. Western craftsman have their $$$ cnc machines, Most Russians craftsman use their simple hand tools to create a masterpiece.
Just a way different mindset there.
Posted by: heavymetal101 | Aug 1 2023 12:33 utc | 48
Posted by: Saag | Aug 1 2023 6:45 utc | 1
"As long as the gas guzzler Ford F150 is running."
As an average North American, my truck is part of my life. Part of my job. At times helps pay the bills. And my truck is like many others in my community, a part of a family business.
That comment has no weight, devalues the channel, shows simple ignorance. or like some drunks in a bar, maybe you just want start an argument. :)
Posted by: heavymetal101 | Aug 1 2023 12:42 utc | 49
I hope we can all agree that the americans still have calossal power, curuption, media. The mic, big pharma, big Agri. Finance clout.
We tried Trump we got major unrest on the sreet. Plus a list of other negatives.
We've had a taist of Biden , well say no more.
They have a strangle hold between them, no room for morals integrity or compassion for fellow humans.
Were not powerfull enough to vote them out and were not powerful enough to throw them out.
But i can spot an alternative...
Can you ?
Ill be back in a short while. Watch this space.
Posted by: Mark2 | Aug 1 2023 12:49 utc | 50
DunGroaning no. 42
"Am I wrong"?
I don't think so.
Posted by: ThusspakeZarathustra | Aug 1 2023 12:53 utc | 51
Re: Posted by: scepticalSOB | Aug 1 2023 7:14 utc | 5
“Europe's elites will never admit or apologize for the bait 'n' switch the USA played on them with the Ukraine war. “
To clarify, I also has others have written think this post was well thought out and articulated. There is, in my mind, a theme of victimization playing out about the EU in this that one day I’ll write an entire blog on it.
Short version, EU wasn’t “bamboozled” in any way by the US. They are greedy former and current Colonial powers, feasting on the military arm of the US for a Century. The US is the Military Arm of a collective of Colonial and former Colonial Nations and it’s been that way since WW1.
The old EU colonial powers, Spain, Italy, France, UK & inherited/subjugated Prussia (Germany) decided the U.S. would serve their oil, banking & business interests by military might globally. The EU was centralized and formed an alliance for the sole purpose of EU colonization to serve Old EU colonial powers. London & Italy still control and hold a large financial part of this “collaboration”, but understand that Americans as the military arm, went to war for decades after WW2 as a Colonized weaponized arm to serve colonial powers. To think folks like Biden and idiots like Nuland actually call the shots for anything bigger than ordering a pizza is insane. This “collective West” as Russia often refers to is correct.
Attacking Russia via Ukraine was not an arbitrary, singular decision made by the “US” leaving “poor EU” a mess. This was a hubristic collective “plan” of the colonial powers to assert their colonization plan and enlarge their EU asset plan and they are still in process of that plan. As obvious, they are lockstep with US military arm.
When Putin said “not seen in 100 years” referring to the elimination of the military arm of the collective colonial powers, ushering in the annihilation of Colonialism as a whole. One domino is partially fallen. But it will be, I think, a generation or 2 b4 the purge is complete. The worst is still ahead. The US is not a Nation. It’s a military arm of a collective, nothing more.
Posted by: Trubind1 | Aug 1 2023 12:54 utc | 52
Whether European elites were fooled by the bait-and-switch I don't know, but the ordinary people were.
If Brits had been told that inflation would soar and their energy bills triple I'm pretty sure they wouldn't have been so keen to declare economic war on Russia.
As it was, they expected the hardship and subsequent regime change to be visited on Russia, not the UK as actually happened.
Posted by: YetAnotherAnon | Aug 1 2023 13:05 utc | 53
@48 "Sanctions were directed towards the "oligarchs" with western influences."
If I may use the much maligned word, 'retarded', to describe the West's sanctions against the oligarchs.
Instead of sanctioning the Oligarchs (what do they get ? A bunch of yachts they have to harbour and maybe a few $billion which is nothing compared to war subsidy costs)they should have brought the oligarchs into the Western tent suth that they would pressure Russia/Putin and keep their assets in Western world.
Instead they have pushed the oligarchs with their money and resources back to Russia as they to escape the sanctions and general discrimination in the West.
The West is now, officially, run by these retards.
So Gonzalo is free, but heading for court. Hopefully he'll be kicked out upon sentencing!
Posted by: Glasshopper | Aug 1 2023 13:11 utc | 55
Samsung U-Turns On Ukraine War, Sells Foldable Phones in Russia
https://www.channelnews.com.au/samsung-u-turns-on-ukraine-war-selling-foldable-phones-in-russia/
Samsung is selling its cutting edge Galaxy Fold5 and Flip5 smartphones in Russia, a reversal of the shipment ban it imposed after Russia invaded Ukraine.Handset specialist publication GSMArena reports that both foldable handsets are due to go on sale shortly after Samsung promised to launch them within two weeks.
“The Fold5 is offered by local carrier mts for RUB 189,990, which is equal to US$2,062, while the Flip5 starts from RUB110,000, which translates to almost US$1,200, according to the current exchange rate,” says GSMArena. Both phones are bundled with premium wearables and offered old with next-day delivery or same-day store pickup.”
Samsung ceased the sales of its products in Russia when the country invaded Ukraine in February 2022.
Four paragraph rule, so hit the link for more.
https://www.channelnews.com.au/samsung-u-turns-on-ukraine-war-selling-foldable-phones-in-russia/
Posted by: Babel-17 | Aug 1 2023 13:26 utc | 56
The last elections were dam close leaving aside vote rigging clearly they both did that.
What America needs right here right now is a 3 party election.
The third party would have a huge amount of power and posative influence, hopefully rendering the other two pychopathic partys impotent. More human and normal.
Now heres the thing...
Last times the black vote was not going to Trump, so that there was (alot) went to biden to keep trump out. We got biden and here we are regretably. But....
Just these last weeks things have changed, we here saw the geopoliticl tectonic shift coming.
Multi polarity.
It happened but did we see the detailed signifants of it large and small scale.
To my point.
Africa and its diaspora are standing up for its trade freedom as i noted a couple of threads ago.
Afro carabians in America i know this are fully on boared(roots)
That is a massive block vote in the next elections it wont be wasted on Biden this time.
They are lining up behind the green party candidate. I may have the name slightly wrong but i think is it Hugh Cornell. 3 party race curtaling both extremes whats not to like never even mind if they got in. Just clip the power wings of the other two.
What do ya all think.
A hung parliment ! (My little joke)
Posted by: Mark2 | Aug 1 2023 13:27 utc | 57
Posted by: Babel-17 | Aug 1 2023 13:26 utc | 56
Why would Samsung want to give their market share in Russia to Huawei? There are alternatives for any and every product US regime tries to sanction.
Posted by: unimperator | Aug 1 2023 13:31 utc | 58
Seven Reasons Why Russia Dominates In Ukraine
Drago Bosnic, South Front, Aug 1 2023
our newsfeeds are being flooded with an ocean of ludicrous propaganda that only aims to portray Moscow’s forces as supposedly “weak and ineffective.” Everyone from tabloids and YouTube “experts” to reputable (or rather once reputable) media keep parroting the same narrative: “Russia is losing.“ However, is that the case? Here are seven reasons why that’s not only patently false, but quite the opposite, it couldn’t possibly be further from true.
Unrivaled command and control
Massively improved ISR (intelligence, surveillance, reconnaissance)
A unique combination of active defense and ad hoc (counter)offensive operations
The high morale of Russian forces
Disorder, insubordination and inadequate coordination among Kiev regime forces
Top-notch training and combat experience
Vast technological superiority
More Ukrainian Servicemen Trained By NATO Surrender In Their First Battle
South Front, Aug 1 2023
The Ukrainian military is using servicemen trained by NATO countries as cannon fodder. More and more Ukrainian prisoners of war (POWs) declare that they were trained abroad. However, the training did not help them during the fighting on Ukrainian front lines and they are surrendering in their first battles.
I posted only highlights.... Excellent summary ....
INDY
Posted by: Dr. George W Oprisko | Aug 1 2023 13:33 utc | 59
@Glasshopper | Aug 1 2023 13:11 utc | 55
That is not a correct summary, watch his videos from today. Current status is unknown.
Posted by: Norwegian | Aug 1 2023 13:34 utc | 60
[email protected] forgot the Big Mac....
Cheers M
Posted by: sean the leprechaun | Aug 1 2023 13:35 utc | 61
Product of spain
Brand: Great Value
Locations: WALMART
Product: Sweet Peas
Sku:0078742 35874
Batch: L 215902
Useby dec31,2026
Still available. Do not buy, it will make you sick
Posted by: Merlin | Aug 1 2023 13:37 utc | 62
Surely India has copper, food, services and so on to buy ?? India could blow a big hole in the sanctions empire.
Posted by: Eighthman | Aug 1 2023 11:59 utc | 44
I'd like to get coconut milk for, say, 50 rubles a can, and more variety in clothes, which I'm sure India could provide. It's a bit annoying trying to find non-gopnik clothes. A couple of new clothes brands appeared, finally, during the summer, but there could be a lot more. From countries with an understanding of men's style. Turkey, India.
And fruit. Russians love fruit, and any southern Asian country could sell as much as they want, in the winter, if the prices are reasonable.
Posted by: Mike | Aug 1 2023 13:37 utc | 63
Posted by: Dr. George W Oprisko | Aug 1 2023 13:33 utc | 59
The Kiev regime is also now using foreign mercenaries as front line assaulters. No longer can they sit back in Kharkov or Nikolaev making TikTok videos. The mercenaries are angry about this and lose interest in the Ukraine project.
Why is this? Because according to Lvov military commissioner, 80% of conscripts in Ukraine are fetched from their homes or off the street. It should be obvious to anyone with a mediocre level of understanding that the native capability of the army is dropping and as a result the punching power.
Posted by: unimperator | Aug 1 2023 13:42 utc | 64
Decoupling from a quarter of world's inputs without any forecast just because the big guy say so was the most stupid thing the EU did ... that's why they did it 11 times.
And now Macron is like "we don't wanna decouple with China !" : who the hell did he think he fools ? US are like those desperate who threaten to kill their whole family before suicide : will the dog flee or shake tails while he kill mommy ?
Posted by: Savonarole | Aug 1 2023 13:54 utc | 65
Check youtube "Traveling with Russell" Ausie expat with Ruskie wife living IIRC around Moscow. He avoids politics and sticks to big lovely parks, cool infrastructure, mega malls to mini markets, auto shows, festivals, etc. I followed him over the time of the SMO to glean something about economy and sanctions.
All the shelves in the mega supermarkets are stocked with everything including western products common or luxury, some stores left for good, some never left (Italian luxo fashion - obvious respect among the rich and crass) most shut down for a couple months and rebranded with new names, distribution, and likely shadow banking, Russia will get sales tax at the POS, EU etc will get bupkis.
Usual rule is money talks bullshit walks, wars can be an exception as they can spiral out of control, but for now the real economy is hedging their bet, we will see who wins the battle between the corporate MICIMATT and the corporate real economy. Remember real economy has gone in all in on globalization, since the 1970s was guided, forced, driven in that direction by the USA state and Wall St. economic plan. Now like chumps they are standing around with their d*cks in their hands.
There's a lot that'll have to play out here hopefully it will break on the side of global corporate real economy and prevent WW3.
Posted by: LightYearsFromHome | Aug 1 2023 14:01 utc | 66
@The Accountant | Aug 1 2023 7:00 utc | 3
The way to destroy the internal Russian production economy, perversely, would be to flood the Russian market with cheap imports. Much as the Chinese have done worldwide. Russia is still addicted to neoliberal economic theory (and will be until it nationalises the central bank and abandons the ineffective Western interest rate beliefs). That's its weak spot.
Granted, Russia doesn't seem to want to take over its "independent" central bank, but Russia doesn't seem to want to do many things, like wipe out all the opposition to Assad in Syria, or wipe out the opposition in Ukraine quickly, etc, etc. Russia is doing whatever its doing very slowly, while just letting its economy develop. Russia is not an open country, resources such as labour, capital and manufactured goods just can't cross the Russia border in a willy-nilly fashion as in the West. Anything wanting to cross the border has to jump through hoops in triplicate because the inebriated borders guards only know how to use their ak's on full auto.
Then Russia doesn't have the made to break products as in the West. A fridge there can last forever, as do the stoves and mattresses, all with minimal and cheap maintenance. The apartment complexes all have central heating, and the public transport is prolific. Cars are a problem though, but in the Russian east the cheap Japanese toyota 2'nd hand imports still last for like 20 years. In Japan the cars are only allowed on the road for 1 year for environmental reasons. So the consumer culture in the West just doesn't exist in Russia so no weak spot for cheap trinkets there. Moscow would be an exception though, lots of Western wannabees there.
The USSR only broke up because Russia could not feed its people, but now with all the hybrid wheat species developed since the collapse in the 1990's that is no more an issue. Russia is now basically bullet proof except maybe for nukes and internal disruptions resulting from too pacifist leadership.
Posted by: gT | Aug 1 2023 14:23 utc | 67
Also, the arbitrary seizure of Russian assets, both public and private has destroyed whatever was left of belief that it was safe to invest in NATO countries. Who in their right mind would keep their gold holdings in the Bank of England? Both Venezuela and the Russian Central Bank learned the hard way that it was a very bad idea to trust the 'rules based world order'.
I laugh whenever I hear FOX hosts scream about Chinese buying farmland in the U.S. being a national security threat. The U.S. can seize those holdings with a simple executive order.
Posted by: Christian J Chuba | Aug 1 2023 14:40 utc | 68
Mark2@ 57
Correction Cornel West not Hugh Cornell
As i suspected.
Posted by: Mark2 | Aug 1 2023 14:53 utc | 69
Russia is the world's 2nd largest oil exporter. Oil is absolutely essential for daily transport of both people, commerce and goods. Sanctioning would not work since there will always someone willing to buy the black gold. It's common sense.
The people in the federal government who came up with this idea of sanctioning Russia have degrees from Harvard, and other Ivy leagues, but primarily Harvard. And yet lack common sense.
The same people are also responsible for technology sanctions again China which obviously didn't give the intended results.
How could so many people with prestigious degrees get simple things wrong so many times???
It is well known that a third of the students are legacy admits (their parents attended). That institution is actually an elite club for the super wealthy who want make sure their offspring pass on their wealth & influence by "networking" with offspring of other super rich. The club has quite a cover charge, or "donation". Tax deductible no less.
But one would wonder, considering all this, if the education would at least make the offspring intelligent. Clearly that's not the case.
"Education" from Harvard outside STEM majors has no value. The whole institution is just a money laundering front masquerading as a university.
Posted by: FieryButMostPeaceful | Aug 1 2023 14:56 utc | 70
At risk of being boring I am going to run through a little United States history. The second president of the United States, Thomas Jefferson, was having a problem with Great Britain and thought that he could modify British behavior with a trade sanctions policy. And so he imposed sanctions. The main problem was that Britain as an empire had less need for trade with the United States than vice versa, and the sanctions mainly damaged the United States. Apparently for reasons of politics, Jefferson left the sanction policy in place. But then, just before he left office he terminated his sanctions policy. The apparent reason was to avoid the incoming president getting the benefit that would go with terminating the policy.
One is reminded of Benjamin Franklin's aphorism that history doesn't repeat itself but it does rhyme. I wonder how long it is going to take to terminate our sanctions policy?
Posted by: Jmaas | Aug 1 2023 15:05 utc | 71
I was intrigued by the 1.1 million simcards lost metric posted by unimperator. I read the whole article by the Russian comms journalist.
Is there any way we can get corroboration of this figure? It does suggest that Ukrainian casualties are even higher than many of us thought.
Is there any other reason, other than casualties, to explain this? Did refugees to either East or West throw away their sim cards perhaps?
Posted by: JulianJ | Aug 1 2023 15:10 utc | 72
It is no wonder then that people will vote for anyone other than those in charge.
Posted by b on August 1, 2023 at 6:31 UTC
=====================================================
I sincerely hope you are right, but doubt it. People keep getting offered and voting for the same idiots and crooks over and over again.
Though of late more stories coming out about AfD in the news. Every other sentence still stresses they are 'extreme right' but then explains how they are a valid response to leadership which has not benefited the German people for quite some time.
I think that might be worth a story, b, given that Germany is a key nation in this West vs Eurasia tussle. The ostensible bone being fought over is Ukraine, but the schlusselpunkt which may have finally necessitated hostilities in 2022 probably had as much to do with the closeness developing between Germany and Russia (and China) as specifically manifest by the gas pipelines linking them in the same way major organs are connected via the body's internal, ever-pumping blood supply.
The point being that if Germany starts to drift away from overt vassal status, this is a potentially world-changing big deal. Indeed, I suspect the reason Putin refuses to close the door on the West is because he wants to develop strong, genuine alliance with Germany. Russia is land-based with potential enemies to the East and West as is Germany, so they share certain existential predicaments. If Russia can affect strong alliance with both Germany and China, not to mention Persia et alia in the South and India-Pakistan in between, all of which is now being developed as part of overall Belt & Road developments, then her destiny is secured for generations. And the same would be true for Germany as well if she can be prized from post-war occupation by NATO and be free to pursue her own sovereign interests.
Of course, this would involve her climbing down from central bank controlled EU, one of whose purported benefits is to prevent yet another ghastly intra-European war. But I think those days are over. European nation states now have bigger fish to fry, including their ability to survive in a rapidly developing Eurasian-led world. The EU seems a better vector for inertia than initiative. As such it is contributing more to the problems in the Eurozone than providing solutions.
At a time in the US gas prices should be going down they are going up. So what’s that tell you about all these sanctions we placed on Russia?
Posted by: Ron | Aug 1 2023 15:12 utc | 74
The second president of the United States, Thomas Jefferson,Posted by: Jmaas | Aug 1 2023 15:05 utc | 71
Did you mean "second...John Adams" or "third...Thomas Jefferson"?
Posted by: David Levin | Aug 1 2023 15:16 utc | 75
Posted by: The Accountant | Aug 1 2023 7:00 utc | 3
Good points here. I'd go a step further and say he should nationalize all banks and finance for starters. Why even work with the Oligarchs? Then aid the wage slaves of the west to gain power in their own countries to do the same.
Neoliberal illusions notwithstanding, Putin is very much a product of the Soviet Union. At this point, he knows the whole neoliberal crap Russia was fed after the collapse of the USSR was a fraud. The workers in Russia learned this hard lesson very quickly.
Nationalized economy to serve the people without the Stalinist repression would be extraordinarily popular with the people and a step closer to the Chinese model which appears to be positioned somewhere between Capitalism and a future world system without the FIRE sector vampires preying on society.
The world requires a radical evolution of it's economic systems or it will perish under the perverted oligarchy of the west.
All the wealth of finance capital, trillions, is the product of working people and their labor. They have a right and a duty to take back that stolen product and use it for their own benefit.
This is really the root issue beyond all the fake two party rivalry, the culture wars, etc.
Posted by: Ahenobarbus | Aug 1 2023 15:16 utc | 76
At a time in the US gas prices should be going down they are going up. So what’s that tell you about all these sanctions we placed on Russia?
Posted by: Ron | Aug 1 2023 15:12 utc | 74
Don't know about the US, but it will certainly be interesting to see whether EU states will need to pull off another multi hundred billion euro energy subsidy next winter.
Posted by: unimperator | Aug 1 2023 15:21 utc | 77
They are lining up behind the green party candidate. I may have the name slightly wrong but i think is it Hugh Cornell. 3 party race curtaling both extremes whats not to like never even mind if they got in. Just clip the power wings of the other two.
What do ya all think.
A hung parliment ! (My little joke)Posted by: Mark2 | Aug 1 2023 13:27 utc | 57
I'm not sure why any third-party candidate wouldn't be consigned to irrelevancy by the same dirty tactics (censorship, slander, vote fraud) that have been employed in the US for a long time. My understanding is that recent third-party candidates who managed to get publicity (such as John Anderson and Ross Perot) were part of the big scam--to give the citizenry false optimism.
Posted by: David Levin | Aug 1 2023 15:26 utc | 78
"Russia will get sales get sales tax at the POS, EU etc will get bupkis."
Posted by: LightYearsFromHome | Aug 1 2023 14:01 utc | 66
2 very different monetary systems. Euro using countries need the tax to " find the money "
Russia doesn't that's the HUGE difference. Sales tax in Russia is just a tool to take everybody's spending power away to make room in the economy so everybody can buy the goods and services they need.
Sales tax destroys rubles never to be seen again. Certainly won't be respent back into the Russian economy. Russia is fully sovereign issues it's own currency it doesn't need sales tax or any other tax to be able to spend. It just issues the ruble and buys anything that is for sale in rubles that it needs.
Euro using countries gave up the power to do that. They have away their sovereignty.
https://m.youtube.com/watch?v=UqT3oW-Mxio&pp=ygUVU3RlcGhhbmllIGtlbHRvbiBldXJv
Posted by: Echo Chamber | Aug 1 2023 15:28 utc | 79
Samsung U-Turns On Ukraine War, Sells Foldable Phones in RussiaPosted by: Babel-17 | Aug 1 2023 13:26 utc | 56
Given what comments in this and other MoA threads have noted regarding how economically many Russians live (including growing a garden), it seems an exaggeration to characterize offering phones priced in the four figures, as a "U-turn" by the manufacturer. It strikes me as some sort of political straddle: violating the sanctions in a way that will probably not generate much revenue.
Posted by: David Levin | Aug 1 2023 15:36 utc | 80
The long term effect of these failed sanctions is to show the rest of the world that they do not need to use the US$ or to keep their savings in Western Banks or to buy US treasuries. We will face tough economic consenquences in a few years because of these sanctions. They were imposed without any thought or proper stress testing.
Posted by: Mindlos | Aug 1 2023 15:37 utc | 81
It should be noted the price cap has worked very well, russia oil sells for 60 or less and their revenues are way down. I guess though accumulating foreign reserves didn't work out well in the past anyways lol.
Still there's a looming jump in fuel prices so the tug of war will continue
Eventually oil depletion argues that russian oil will be needed and bought at any price necessary if true shortages develop. They just have to stand the flack and hold course.
Posted by: Neofeudalfuture | Aug 1 2023 15:40 utc | 82
Putin has obviously taken swimming lessons from Scrooge McDuck.
More to the point, I vividly recall my apprehension while watching President Biden sanctioning anyone and everyone connected to Putin. The joke about Russia being a gas station with nuclear weapons ignored the reality that Russia was primarily responsible for developing its own oil industry and had built and retained the largest nuclear weapons arsenal in the world, obviously without Western assistance. While almost everyone has been surprised that Iran is able to supply extremely effective drones to Russia, Russia is also able to manufacture it's own drones. Now the West is realizing that Russia can still build fighter aircraft, bomber aircraft, tanks and other military systems.
America has a Golden opportunity to give peace a chance after the fall of the Berlin Wall. Instead, America launched a bombing campaign against ethnic slaves in Yugoslavia and relentlessly expanded NATO.
Posted by: Elmer Fudd | Aug 1 2023 15:40 utc | 83
Julian | 8:07 utc | 14
It's called 'die Linke'. And no, B don't thinks much of their leadership. The current left is woke-broke.
The AFD is one systematic delusion. This party is not against the war, only claims it knowing this will transform it to a major political force effortlessly. Its communication is strategic. AFD is a nationalist, militaristic fascism-nostalgia troupe, which in addition negates the literally burning ecological problems.
Posted by: Pnyx | Aug 1 2023 15:43 utc | 84
How do you handle living where the ruling class consider you so stupid that this nonsense will be swallowed dry - without water much less a bracing brew?
Posted by: Debsisdead | Aug 1 2023 7:26 utc | 6
There is no democracy under imperialism. There is no longer the ability to even vote for one of the two parties of the ruling class. The country is militarized, the prison system is massive and the courts will give you ten years for trespassing if they see it as necessary to maintain the dominance of the ruling elite and their wars.
This was the culmination of a process that started slowly after the Vietnam war was lost and then quite suddenly with 9/11. Millions of people struggling to survive in a hollowed out economy know this at least on some level, but there are currently no organizations they can join that wish to fight this dark reality.
Modern society is complex. People require organized political parties to develop a perspective to advance their interests, provide political education and to fight. Forming such a party is the step that must be taken now.
The ruling class in the US doesn't build up totalitarianism and eliminate democracy because it thinks people are idiots. Just the opposite. It doesn't it because it knows the game is up, people hate them and their system and if given half a chance would radically change things.
History shows organized movements midwife radical changes in society. The idea that just a bunch of individuals protesting and screaming changes anything is a fallacy.
It's a question of force at this point. And the only force the wage slaves have that can stop the wealthy and armed to the teeth ruling class is their organized labor power. If that is taken away strategically, the profit machine of the ruling class grinds to a halt.
Bernie was an absolute dem fraud. He voted against any accounting of the money sent to Ukraine just yesterday. However, when he pretended to want to abolish the billionaires (remember that) he almost overnight became incredibly popular.
Do the same thing for real and see what happens.
Hic Rhodus, hic salta!
Posted by: Ahenobarbus | Aug 1 2023 15:47 utc | 85
Eventually oil depletion argues that russian oil will be needed and bought at any price necessary if true shortages develop. They just have to stand the flack and hold course.Posted by: Neofeudalfuture | Aug 1 2023 15:40 utc | 82
Did anyone see what UK / Rishi Sunak are doing? They are issuing North Sea gas and oil E&P licenses like crazy.
The problem is, this industry requires an over 10 year cycle to do E&P. Does anyone trust the western government when they say they want to revive the "evil" fuel industry?
Either way, it was very predictable years ago that the west made another colossal mistake back in 2015 when they started announcing the death of oil and gas and consequently no maintenance of fields has been done since then. It will take several years to set up new fields and then a decade or two to operate them to produce profit. Either way, the "green transition" is delayed by several additional decades.
The fact of life is, those who have fossil fuels will continue using them a lot longer than those who don't. The "green transition" isn't development in this circumstance, it is just an additional expense inflicted on the west and drags them further behind other economies who haven't committed to foolish green agenda goals and don't have to revamp the energy sector immediately, but can do it over several decades.
Posted by: unimperator | Aug 1 2023 15:53 utc | 86
David Levin @ 78
To be sure they will face a lot of pressure and dirty tricks.
This guy isnt another Berni Sanders i have done no reserch but am aware of his name. I beleve he go's way way back camanding much respect. Living history. A figure head or stalking horse if you like.
But i really am drawing attention to the sheer size and force of the geo movment throughout the world. Its deffenatly been picked up in America. Afro Americans are having none of the media propaganda this post is about, so very on topic.
Add a 400 year grudge to settle and a onece in a life time opportunity.
No matter what our individual prejudice a politacl solution like this would benfit everyone in containing the American capalist monster.
And without resorting to the street.
Lastly you can judge how good a polatition is by how strong the trickry and dirty tricks against them (think Corbyn) so yes beyound doubt they'll give him a rough ride.
Lastly a test...
What would Putin think of this outcome ?
And secound lastly yes i am aware of what a let down Obarma proved to be (uncle tom) but so is black America and i dont think theyl be fooled again this would not be a Democrate.
Posted by: Mark2 | Aug 1 2023 15:54 utc | 87
The Accountant | Aug 1 2023 7:00 utc | 3--
Sorry, Neoliberalism is out-of-control Finance Capitalism that controls government and regulatory agencies as in the Outlaw US Empire and its colonies. Russia practices a variant of China's Industrial Socialism where both see uplifting their people as the government's #1 priority. Russia's Central Bank supports Russia's political-economy. No, it's not perfect, but it's not a neoliberal bank like the Fed. Russia's entire banking system is primed to support its economy, which is why it's performing so well.
Did you mean "second...John Adams" or "third...Thomas Jefferson"?
Posted by: David Levin | Aug 1 2023 15:16 utc | 75
Sorry, I meant Thomas Jefferson.
Posted by: Jmaas | Aug 1 2023 16:04 utc | 89
thanks b and thanks susan for the encouragement to make this a discussion..
thanks also for these posters commentary..
@ The Accountant | Aug 1 2023 7:00 utc | 3
@ scepticalSOB | Aug 1 2023 7:14 utc | 5
@ Ahenobarbus @ 76/85
i have nothing to add!
Posted by: james | Aug 1 2023 16:06 utc | 90
Posted by: Echo Chamber | Aug 1 2023 15:28 utc | 79
Surely that is incorrect for foreign trade though? Russia still converts its Ruble into US dollars, yuan and rupees to get what it wants from the respective nations that issue the currency?
Posted by: Wondrous | Aug 1 2023 16:09 utc | 91
Posted by: Julian | Aug 1 2023 8:07 utc | 14
What sort of parents bring you up to repay the hospitality of a host with patronising drivel? The arrogance to suppose who, if anyone, another person would vote for, is astounding. A product of your bourgeois privilege. This arrogance and meanness is evident in everything that you post here. It’s generally mixed with a corporate media narrative with added ignorance, such as yesterdays shite “I want a list of the US bio labs”.
Contributors responded with the information you demanded (you doubted it existed). Did you message back any thanks? No you did not. Utter ignorance.
Now if you don’t like the host’s points, reason with him using evidence if you’re capable of doing that. But as the basic rule states ‘don’t attack the person’ with your patronising projections.
Posted by: Lev Davidovich | Aug 1 2023 16:16 utc | 92
Posted by: Ahenobarbus | Aug 1 2023 15:47 utc | 85
History shows organized movements midwife radical changes in society. The idea that just a bunch of individuals protesting and screaming changes anything is a fallacy.
==============================================
Well, the basis of a movement is there with the MAGA crowd. It's in the dozens of millions and counting. Most of them couldn't care less about Party politics they just want their country to be run well. And they are a pretty broad demographic: some religious, many not; some arch-conservative many not; some into politics, many not - etc.
But of course there's a whole swathe of the population who for whatever reason won't join this movement and indeed contribute to the Blue versus Red Left versus Right Up versus Down Right versus Wrong dynamic which essentially guarantees that no forceful movement for change can ever emerge to kick out the faux Democracy/Duopoly and execute long overdue honest, effective reform.
Maybe what is needed is a better leader. Trump is much better than most of his detractors represent but he refuses to spell anything out, operating mainly in some sort of persuasive, 'aw shucks' realm. RFJ Jr is earnest and detailed but also totally buys into far too many myths and lies - less than most running for office but still: is he really able to go up against the Big Bad Banks, the MICIMATT complexes etc. when it took him until only a few years ago to do a deep dive on his father's and uncle's assasinations? Is anyone articulating a way forward to put in place a bona fide representative republic? How to take down the Deep State? RFK Jr says he has a plan but for some reason hasn't articulated it yet though he says he would willingly do so if asked. Can a big movement develop without a clear philosophy and action plan? Could the MAGA movement be used as a base, an audience for clear ideas? I suspect so. Is it happening? No. Just endless horse race, outrage, resentment etc.
Is the Congress going forward with impeaching a President clearly involved with bribery? It's been on tape since before he was elected. Nothing happens. The country is a fake republic. What good is electing anybody into a fake setup? No good. Are any alternatives being discussed? No. People would rather argue about how to save the planet by seeding more cloud cover to lower the temperature (and starve billions to death in so doing).
And so it goes...
Surely that is incorrect for foreign trade though? Russia still converts its Ruble into US dollars, yuan and rupees to get what it wants from the respective nations that issue the currency?
Posted by: Wondrous | Aug 1 2023 16:09 utc | 91
The whole currency thing is somewhat unsettled right now and there are transactions that take place without using the Dollar. I wonder if the use of an intermediate currency is actually a good idea. It seems like more an expression of imperial power than a means of expediting trade.
Posted by: Jmaas | Aug 1 2023 16:34 utc | 94
The Soviet Union did succeed in changing the Russian Empire from a peasant-based economy to a proletarian-based economy.
Posted by: William Verick | Aug 1 2023 16:39 utc | 95
Posted by: Echo Chamber | Aug 1 2023 8:27 utc | 20
".. economics, money and trade. .."
.. That is a big challenging issue followed by all the "newly adjacent" anti-Westerners, as yet already have been known on all their Africa's Leaders ..
But, what's not yet really coming-up into unerstanding - even on the RF-Civilan's side - is: They - the UKR/Russia remaining cicis want to have more support also from UN/UNO !
So they might wait a little more to be helped by UN and EU, like EU/Borell claims another more effective strikes by the Storm'Shadows against the RF-Ground civilian areas.
That's EU - don't forget that! RF-Forces leaders/commanders won't forget Germany at least in "Ramstein" - be sure!
Posted by: spare_truth | Aug 1 2023 16:40 utc | 96
Am I wrong?
Posted by: DunGroanin | Aug 1 2023 11:40 utc | 42
Yup, in about every way possible I'm afraid.
https://www.huffpost.com/entry/the-myth-of-comparative-a_b_581814
Still the best article ever written about the LCA law of competitive advantage. Written over a decade ago.
"Today's "free trade" is not only the last remnant of laissez-faire -- it is its least deserving remnant, full of wholesale foul play, deception, currency manipulation, predatory techniques, and other violations of its rules, with the perps not even trying to conceal those violations. To call the existing international trade "free," and to use LCA to justify it, is the top of unscrupulous audacity. I do not understand how people of integrity can do it and then call themselves "scientists."
Maybe instead of looking at trade as a profit and loss sheet look at it as a skills and real resources allocation tool. What used be known as your real terms of trade.
Think of it as your pile of stuff. That’s your real wealth. Goods and services. Everything from potato chips to healthcare. Goods and services. That’s your real wealth. So your real wealth is everything you can produce when everybody’s working. That’s how you get the most real wealth. Plus whatever you import adds to your pile of stuff.
Whatever you export subtracts from your pile of real stuff. Now I did not say that exports don’t help the exporters. Yeah, it helps those people. But it is a subtraction of real wealth from the entire economy. Your real resources you send away as exports are your cost of getting imports.
Back in the old days we called that ‘real terms of trade’. So to optimize your prosperity, you make everything you can with everybody working, and then you add to that with imports, what people export to you. Then whatever you must export, you try and get as many imports as you can.
If you can export one Ferrari and get four Mercedes, that’s good. If you can export one Ferrari and get five Mercedes, that’s better. Real terms of trade, that’s the important thing.
Just create full employment at all times at home via a job guarentee and exporters will be Q ing round the block to sell you the imports you need. You wouldn't even have to give up your own real resources to get them.
Posted by: Echo Chamber | Aug 1 2023 16:46 utc | 97
It's rather clear form comments that too many fail to follow the genuine economic reports and discussion that are close to continuously discussed within Russia's government. Both inflation and unemployment are close to historic lows while production in almost all sectors are at historic highs. Yes, the forest products industry is still lagging, but that's the only one. If Russia had 10 million more skilled workers, it's economy would be even hotter. And all that while running an almost-war. The recent Russia-Africa Summit was filled to the rim with economic chatter that it appears few opted to read about; for if they had, they'd know not to display their ignorance. Here's the most recent discussion of Russia's economy from 19 July, that includes a very concise explanation of the digital ruble and how it will interact with and improve Russia's domestic and international economic activity.
Putin's clearly pleased with the overall results but continues to push the notion that more must be done and efficiency must continue to improve. His team's attitude is very similar to China's approach to modernization in that it's a never-ending task.
@ahenobarbus/scorpion
I truely think that the time for new political parties or movements has passed. At least if you think all it needs to change course is a movement that wins an election.
The powers being have set the stakes too high to give up on their goals just because a or b manages to win elections or organize strikes.
Its just my opinion but we are heading towards the abyss either way. All an organized opposition that really takes on the fight is pushing the accelerator.
Posted by: Orgel | Aug 1 2023 16:54 utc | 99
Surely that is incorrect for foreign trade though? Russia still converts its Ruble into US dollars, yuan and rupees to get what it wants from the respective nations that issue the currency?
Posted by: Wondrous | Aug 1 2023 16:09 utc | 91
That gets to the heart of the myth Wondrous. Russia pays with whatever currency it WANTS and the seller gets the currency it WANTS to hold . Each and every time.
It's the banks in the middle that do the conversion.
https://new-wayland.com/blog/anatomy-of-an-fx-transaction/
Posted by: Echo Chamber | Aug 1 2023 16:54 utc | 100
The comments to this entry are closed.
The average person here in North America is blind and has no idea what goes on around them to notice the crimes committed by his/her 'elected' representatives. As long as the gas guzzler Ford F150 is running, the sports games are televised, beer is flowing and current partner is putting out; the blinders stay on.
Posted by: Saag | Aug 1 2023 6:45 utc | 1