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Gold Price Trend Forecast Summer 2019

U.S. Aggression - Will Russia and China Hold Their Fire?

Politics / GeoPolitics Sep 28, 2014 - 12:34 PM GMT

By: Paul_Craig_Roberts

Politics

Obama’s September 24 speech at the UN is the most absurd thing I have heard in my entire life. It is absolutely amazing that the president of the United States would stand before the entire world and tell what everyone knows are blatant lies while simultaneously demonstrating Washington’s double standards and belief that Washington alone, because the US is exceptional and indispensable, has the right to violate all law.

It is even more amazing that every person present did not get up and walk out of the assembly.

The diplomats of the world actually sat there and listened to blatant lies from the world’s worst terrorist. They even clapped their approval.


The rest of the speech was just utter bullshit: “We stand at a crossroads,” “signposts of progress,” “reduced chance of war between major powers,” “hundreds of millions lifted from poverty,” and while ebola ravages Africa “we’ve learned how to cure disease and harness the power of the wind and the sun.” We are now God. “We” is comprised of the “exceptional people”–Americans. No one else counts. “We” are it.

It is impossible to pick the most absurd statement in Obama’s speech or the most outrageous lie. Is it this one? “Russian aggression in Europe recalls the days when large nations trampled small ones in pursuit of territorial ambition.”

Or is it this one? “After the people of Ukraine mobilized popular protests and calls for reform, their corrupt president fled. Against the will of the government in Kiev, Crimea was annexed. Russia poured arms into eastern Ukraine, fueling violent separatists and a conflict that has killed thousands. When a civilian airliner was shot down from areas that these proxies controlled, they refused to allow access to the crash for days. When Ukraine started to reassert control over its territory, Russia gave up the pretense of merely supporting the separatists, and moved troops across the border.”

The entire world knows that Washington overthrew the elected Ukrainian government, that Washington refuses to release its satellite photos of the destruction of the Malaysian airliner, that Ukraine refuses to release its air traffic control instructions to the airliner, that Washington has prevented a real investigation of the airliner’s destruction, that European experts on the scene have testified that both sides of the airliner’s cockpit demonstrate machine gun fire, an indication that the airliner was shot down by the Ukrainian jets that were following it. Indeed, there has been no explanation why Ukrainian jets were close on the heels of an airliner directed by Ukrainian air traffic control.

The entire world knows that if Russia had territorial ambitions, when the Russian military defeated the American trained and supplied Georgian army that attacked South Ossetia, Russia would have kept Georgia and reincorporated it within Russia where it resided for centuries.

Notice that it is not aggression when Washington bombs and invades seven countries in 13 years without a declaration of war. Aggression occurs when Russia accepts the petition of Crimeans who voted 97 percent in favor of reuniting with Russia where Crimea resided for centuries before Khrushchev attached it to the Soviet Socialist Republic of Ukraine in 1954 when Ukraine and Russia were part of the same country.

And the entire world knows that, as the separatist leader of the Donetsk Republic said, “If Russian military units were fighting with us, the news would not be the fall of Mariupol but the fall of Kiev and Lviv.”

Which is “the cancer of violent extremism”–ISIS which cut off the heads of four journalists, or Washington which has bombed seven countries in the 21st century murdering hundreds of thousands of civilians and displacing millions?

Who is the worst terrorist–ISIS, a group that is redrawing the artificial boundaries created by British and French colonialists, or Washington with its Wolfowitz Doctrine, the basis of US foreign policy, which declares Washington’s dominant objective to be US hegemony over the world?

ISIS is the creation of Washington. ISIS consists of the jihadists Washington used to overthrow Gaddafi in Libya and then sent to Syria to overthrow Assad. If ISIS is a “network of death,” a “brand of evil” with which negotiation is impossible as Obama declares, it is a network of death created by the Obama regime itself. If ISIS poses the threat that Obama claims, how can the regime that created the threat be credible in leading the fight against it?

Obama never mentioned in his speech the central problem that the world faces. That problem is Washington’s inability to accept the existence of strong independent countries such as Russia and China. The neoconservative Wolfowitz Doctrine commits the United States to maintaining its status as the sole Unipower. This task requires Washington “to prevent any hostile power from dominating a region whose resources would, under consolidated control, be sufficient to generate global power.” A “hostile power” is any country that has sufficient power or influence to be able to limit Washington’s exercise of power.

The Wolfowitz Doctrine explicitly targets Russia: “Our first objective is to prevent the re-emergence of a new rival, either on the territory of the former Soviet Union or elsewhere.” A “rival” is defined as any country capable of defending its interests or those of allies against Washington’s hegemony.

In his speech, Obama told Russia and China that they can be part of Washington’s world order on the condition that they accept Washington’s hegemony and do not interfere in any way with Washington’s control. When Obama tells Russia that the US will cooperate with Russia “if Russia changes course,” Obama means that Moscow must accept the primacy of Washington’s interest over Russia’s own interest.

Clearly, this is an inflexible and unrealistic position. If Washington keeps to it, war with Russia and China will ensue.

Obama told China that Washington intended to continue to be a Pacific power in China’s sphere of influence, “promoting peace, stability, and the free flow of commerce among nations” by building new US air and naval bases from the Philippines to Vietnam so that Washington can control the flow of resources in the South China Sea and cut off China at will.

As far as I can tell, neither the Russian nor Chinese governments understand the seriousness of the threat that Washington represents. Washington’s claim to world hegemony seems too farfetched to Russia and China to be real. But it is very real.

By refusing to take the threat seriously, Russia and China have not responded in ways that would bring an end to the threat without the necessity of war.

For example, the Russian government could most likely destroy NATO by responding to sanctions imposed by Washington and the EU by informing European governments that Russia does not sell natural gas to members of NATO. Instead of using this power, Russia has foolishly allowed the EU to accumulate record amounts of stored natural gas to see homes and industry through the coming winter.

Has Russia sold out its national interests for money?

Much of Washington’s power and financial hegemony rests on the role of the US dollar as world reserve currency. Russia and China have been slow, even negligent from the standpoint of defending their sovereignty, to take advantage of opportunities to undermine this pillar of Washington’s power. For example, the BRICS’ talk of abandoning the dollar payments system has been more talk than action. Russia doesn’t even require Washington’s European puppet states to pay for Russian natural gas in rubles.

One might think that a country such as Russia experiencing such extreme hostility and demonization from the West would at least use the gas sales to support its own currency instead of Washington’s dollar. If the Russian government is going to continue to support the economies of European countries hostile to Russia and to prevent the European peoples from freezing during the coming winter, shouldn’t Russia in exchange for this extraordinary subsidy to its enemies at least arrange to support its own currency by demanding payment in rubles? Unfortunately for Russia, Russia is infected with Western trained neoliberal economists who represent Western, not Russian, interests.

When the West sees such extraordinary weakness on the part of the Russian government, Obama knows he can go to the UN and tell the most blatant lies about Russia with no cost whatsoever to the US or Europe. Russian inaction subsidizes Russia’s demonization.

China has been no more successful than Russia in using its opportunities to destabilize Washington. For example, it is a known fact, as Dave Kranzler and I have repeatedly demonstrated, that the Federal Reserve uses its bullion bank agents to knock down the gold price in order to protect the dollar’s value from the Federal Reserve’s policies. The method used is for the bullion banks to drive down the gold price with enormous amounts of naked shorts during periods of low or nonexistent volume.

China or Russia or both could take advantage of this tactic by purchasing every naked short sold plus all covered shorts, if any, and demanding delivery instead of settling the contracts in cash. Neither New York Comex nor the London market could make delivery, and the system would implode. The consequence of the failure to deliver possibly could be catastrophic for the Western financial system, but in the least it would demonstrate the corrupt nature of Western financial institutions.

Or China could deal a more lethal blow. Choosing a time of heightened concern or disruptions in US financial markets, China could dump its trillion dollar plus holdings of US treasuries, or indeed all its holdings of US financial instruments, on the market. The Federal Reserve and the US Treasury could try to stabilize the prices of US financial instruments by creating money with which to purchase the bonds and other instruments. This money creation would increase concern about the dollar’s value, and at that point China could dump the trillion dollars plus it receives from its bond sales on the exchange market. The Federal Reserve cannot print foreign currencies with which to buy up the dollars. The dollar’s exchange value would collapse and with it the dollar’s use as world reserve currency. The US would become just another broke country unable to pay for its imports.

Possibly, Washington could get Japan and the European Central Bank to print enough yen and euros to buy up the dumped dollars. However, the likelihood is that this would bring down the yen and euro along with the dollar.

Flight would occur into the Chinese and Russian currencies, and financial hegemony would depart the West.

By their restraint, Russia and China enable Washington’s attack upon them. Last week Washington put thousands of its NGO operatives into the Moscow streets protesting “Putin’s war against Ukraine.” Foolishly, Russia has permitted foreign interests to buy up its newspapers, and these interests continually denounce Putin and the Russian government to their Russian readers.

Did Russia sell its soul and communication system for dollars? Did a few oligarchs sell out Russia for Swiss and London bank deposits?

Both Russia and China have Muslim populations among whom the CIA operates encouraging disassociation, rebellion, and violence. Washington intends to break up the Russian Federation into smaller, weaker countries that could not stand in the way of Washington’s hegemony. Russian and Chinese fear of discord among their own Muslim populations have caused both governments to make the extremely serious strategic mistake of aligning with Washington against ISIS and with Washington’s policy of protecting Washington’s status quo in the Muslim world.

If Russia and China understood the deadly threat that Washington presents, both governments would operate according to the time honored principle that “the enemy of my enemy is my friend.” Russia and China would arm ISIS with surface to air missiles to bring down the American planes and with military intelligence in order to achieve an American defeat. With defeat would come the overthrow of Saudi Arabia, Bahrain, Qatar, the United Arab Emirates, Jordan, Egypt and all of the American puppet rulers in the area. Washington would lose control over oil, and the petro-dollar would be history. It is extraordinary that instead Russia and China are working to protect Washington’s control over the Middle East and the petro-dollar.

China is subject to a variety of attacks. The Rockefeller Foundation creates American agents in Chinese universities, or so I am informed by Chinese academics. American companies that locate in China create Chinese boards on which they place the relatives of local and regional party officials. This shifts loyalty from the central government to the American money. Moreover, China has many economists educated in the US who are imbued with the neoliberal economics that represents Washington’s interests.

Both Russia and China have significant percentages of their populations who wish to be western. The failure of communism in both countries and the success of American cold war propaganda have created loyalties to America in place of their own governments. In Russia they go by the designation “Atlanticist Integrationists.” They are Russians who wish to be integrated into the West. I know less about the Chinese counterpart, but among youth Western materialism and lack of sexual restraint is appealing.

The inability of the Russian and Chinese governments to come to terms with the threat posed to their existence as sovereign countries by the neoconservative insistence on American world hegemony makes nuclear war more likely. If Russia and China catch on too late in the game, their only alternative will be war or submission to Washington’s hegemony. As there is no possibility of the US and NATO invading and occupying Russia and China, the war would be nuclear.

To avoid this war, which, as so many experts have shown, would terminate life on earth, the Russian and Chinese governments must soon become far more realistic in their assessment of the evil that resides in what Washington has turned into the world’s worst terrorist state–the US.

It is possible that Russia, China, and the rest of the world will be saved by American economic collapse. The US economy is a house of cards. Real median family incomes are in long-term decline. Universities produce graduates with degrees and heavy debts but no jobs. The bond market is rigged by the Federal Reserve which necessitates rigging the bullion markets in order to protect the dollar. The stock market is rigged by the outpouring of money from the Federal Reserve, by the Plunge Protection Team, and by corporations repurchasing their own stock. The dollar is supported by tradition, habit, and currency swaps.

The American House of Cards continues to stand only as a result of the tolerance of the world for vast corruption and disinformation and because greed is satisfied by the money made from a rigged system.

Russia and/or China could pull down this House of Cards whenever either country or both had leadership capable of it.

Paul Craig Roberts

http://www.paulcraigroberts.org/

Paul Craig Roberts [ email him ] was Assistant Secretary of the Treasury during President Reagan's first term.  He was Associate Editor of the Wall Street Journal .  He has held numerous academic appointments, including the William E. Simon Chair, Center for Strategic and International Studies, Georgetown University, and Senior Research Fellow, Hoover Institution, Stanford University. He was awarded the Legion of Honor by French President Francois Mitterrand. He is the author of Supply-Side Revolution : An Insider's Account of Policymaking in Washington ; Alienation and the Soviet Economy and Meltdown: Inside the Soviet Economy , and is the co-author with Lawrence M. Stratton of The Tyranny of Good Intentions : How Prosecutors and Bureaucrats Are Trampling the Constitution in the Name of Justice . Click here for Peter Brimelow's Forbes Magazine interview with Roberts about the recent epidemic of prosecutorial misconduct.

© 2014 Copyright Paul Craig Roberts - All Rights Reserved
Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


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