Showing posts with label China.. Show all posts
Showing posts with label China.. Show all posts

Thursday, February 26, 2026

I Reiterate.

Amrit wrote excellent post on China in previous discussion board, but here is OPEC data which shows one of a number of vulnerabilities for China's massive industry. And that has a direct impact on China's posture. 


It also explains why Europe is not a superpower combined, forget about viewed separately as nations, and why energy is foundation of everything. Thermodynamics is at play here. Hence a precarious position of China. 

Friday, September 12, 2025

There Is One Issue ...

... with Li Jingjing's thesis--it is difficult to concentrate on what she says, because of marveling at her stunning beauty. Complete distraction)) This is just a bit of Friday pleasantries for you.

On a more serious note, they've got the assassin. Anti-fa brainwashed type. 

Saturday, December 9, 2023

Take It With A Grain Of Salt.

But the report is interesting. Russia will help, if not already, with restoring Mi-17s helis which Pentagon was buying for Afghan government before it fell. There is also very little what Russia or China can find interesting in what was left by US forces, but the truth is--Russia is interested in stabilizing  Afghanistan before even considering recognizing Taliban. Russians naturally have questions to them regarding treatment of women. Russia still provides humanitarian aid anyway though. 

The region is extremely complex and screwed up, but it is a process.

Sunday, June 18, 2023

Major General Bakshi...

 ... talks here about strategy and he makes much more sense than any of the NATO or US generals parading themselves as military amateurs in the capacity of military "experts" for all kinds of "news" outlets. 

The only point I disagree with General is the NATO involvement which will only trigger Russia's additional mobilization and escalation of the SMO into the War. I do agree with our own ARW's observation that Blinken is in China for more than just discussion of US-China relations. As ARW astutely observes:

My guess... : USA can not be seen picking up the phone and calling Russia. So, they are in China trying to get them to negotiate the US position with Russia which is a peace deal that splits Ukraine but with NATO security guarantees for the western portion. Edit…I also think that all the public disclosures of the Korean solution, no NATO, NATO security council, etc. were the Wests attempts to negotiate with Russia but doing it publicly. I also don’t think China would have agreed to mediate unless Russia showed a willingness to talk about it.

I think he absolutely nails it here and the search for off-ramp in Biden Admin has started some time ago. But as I stated the minute Putin showed the draft of the agreement with 404 last year's May, Putin never does anything just because. Meeting of the leaders of African countries is a big deal and a highly publicized event, and those drafts saw the light of day (and media) for a very specific reason. Things may get very-very hot and very-very soon.

Thursday, March 16, 2023

Well, Start Stop-watches, Gentlemen.

It is not just India which has JV with Russia known as Brahmos. Nope, the deputy head of Corporation Tactical Missile Armaments (KRTV) would have never articulated this without OK from higher-ups. 

МОСКВА, 17 мар - РИА Новости. В корпорации "Тактическое ракетное вооружение" (КТРВ) не исключают возможность передачи в будущем гиперзвуковых технологий дружественным странам в случае принятия соответствующего политического решения, сообщил РИА Новости заместитель генерального директора КТРВ Константин Бирюлин. "Вопрос о том, насколько мы готовы передать эти новые технологии нашим друзьям, тем, кто с нами дружит и является нашими не какими-то, а настоящими партнерами. Это решение политическое. Если будет такое решение, я думаю, что мы найдем возможность передать эти технологии", - сказал Бирюлин, отвечая на соответствующий вопрос.

Translation: MOSCOW, March 17 - RIA Novosti. The Tactical Missile Weapons Corporation (KTRV) does not exclude the possibility of transferring hypersonic technologies to friendly countries in the future if an appropriate political decision is made, Deputy General Director of KTRV Konstantin Biryulin told RIA Novosti. "The question is how ready we are to transfer these new technologies to our friends, to those who are friends with us and are our real partners. This is a political decision. If there is such a decision, I think that we will find an opportunity to transfer these technologies," Biryulin said, answering a related question.

Oh, well, we all know what "friendly countries" Konstantin Biryulin is talking about.  Dear Comrade Xi arrives to Moscow on the 21st. I am 100% positive that his good close friend Vladimir will gladly discuss and "acquiesce" to the proposition of Chinese friends to help out a bit in an around First Island Chain, or maybe even beyond, by means of sharing some knowledge and hardware with China. Kinzhal is a mature weapons system which sees combat use to a devastating effect almost daily in 404. How strange, Bashar Assad also said that, hey, how about some Kinzhals in Syria? 

Will Zircons follow? Let me remind you that development of shorter (up to 1,000 km) and "lighter" version of 3M22 Zircon for small missile ships of Russian Navy was already declared a few years back. Who says that Russia cannot supply those to "friendly countries". After all, since Russia paused her START participation, who said that Russia should keep a gentleman's agreement on non-proliferation of the cruise missile technologies limiting their range to 300 kilometers. Hey, India already launches her Brahmos at the range of 800+ kilometers and is getting ready to enter hyper-sonic territory by 2027-28. It was coming and now people of import confirm--Russia is ready to help out. Boy, those A2/AD "bubbles" suddenly look very dangerous and grow in size.  Start your stop-watches, gents, before you will hear moans of desperation from the swamp.      

Tuesday, February 14, 2023

NATO Wants...

 ... reportedly to fight two wars. 

NATO is set to adopt a guidance that lays out plans for a scenario in which member states find themselves fighting on the home front and beyond the borders of the alliance at the same time, Bloomberg reported on Tuesday. This comes as the US increasingly shifts its priorities to confronting China. The classified document is to be discussed and signed off on by NATO defense ministers during a two-day summit in Brussels that starts on Tuesday, the news outlet reported. Members will be asked to prepare national plans for future military engagements. The guidance will map out ways for NATO to engage in a “high-intensity so-called Article 5 conflict” – defending a NATO nation attacked by a foreign party under the treaty’s mutual defense provision – and “an out-of-area, non-Article 5 event.” The contents of the guideline were revealed to Bloomberg by “people familiar with the matter.”

In related news--I want to fly as a bird and sing as Freddy Mercury (or Marc Martel). And why not? Nobody forbids us from wanting things. Those wants are called dreams. So, dream on me and NATO. But, as I discussed it today with James Kunstler and Thomas--Washington completely lost the ability to calculate anything, from economics to military operations. But a dramatic change of tone in Western media is telling.

Monday, July 26, 2021

You Cannot Help Them, Or Captains Obvious.

When I write about US crisis I constantly stress that it is systemic and it is institutional. Very few American institutes are as tragicomical and popular as being butts of the jokes around the world than the so called America's "Intelligence Community". It's failures to assess or to predict anything are so spectacular, that one must question a validity of their "analytical" methodology. To illustrate this, it is enough to take a look at a comment to a release in 2012 by the Office of the Director of National Intelligence Global Trends Projections 2030. 

Report projects U.S. as "first among equals," but the "unipolar moment" is over.

Well, here we are in the year of 2021, 9 years before the end date of these "projections", and, boy, are we in for a surprise. I am not talking about "unipolar moment" which was over in 2007 after Putin's Munich Speech and wiping the floor with the US client of post-Soviet country of Georgia in the five day war in 2008. That it was over was clear already then. No, I am talking the "first among equals". There is a lot of wrong with statement, because seeing the size of America's real economy today, and yes, I am talking about actual manufacturing, one is forced to concede that American economy is nowhere near the Chinese one and continues to deindustrialize at accelerated rate. Yes, my brand new refrigerator is made in Mexico, the new stove is made in China, and pretty much any consumer good sold today inside the US is NOT made in America. And these are consumer goods only, there are other goods and resources which have non-US origin and are critical for what remains of the US productive economy. Be that China's rare earth elements, Russia's titanium for US aerospace, or many other things and the list is long. 

So, no, the US is not "first among equals" since China dwarfs the United States economically, while Russia neutralized most of US military capabilities by making systems which the United States simply can not and it is doubtful will be able to close ever-increasing military-technological gap with Russia both in enablers and weapons which shape modern geopolitics. No doubt, this year, yet another Captain Obvious "assessment", on Threats to the US no less, has been produced with an "intelligence insight" of such a profundity that one really begins to scratch the head.

If this is the "level" of "intelligence" assessments, I need to call on Mr. Lavrov. 

Neither USSR, nor Russia in post WW II time ever wanted "a direct conflict" with "US Forces", which wouldn't be able to survive it to start with, but tried to avoid escalation towards conflict knowing simply way more about real war and how it looks like than any US policy-maker or general. Truth is, in terms of "undermining" US influence, the United States does a swell job itself. In fact, Russia couldn't even dream about undermining the US influence with such incredible efficiency than the US does on its own. Posting trite obvious facts or, on the other hand, elaborate, but easily debunked, lies by the so called US intelligence community IS the part of this undermining and if anyone wanted to see a complete dysfunction and a monstrous BS-producing machine, one doesn't need to look further than Trump's Presidency and Elections 2020. 

Of course, no one should expect any public domain assessments even from the top notch analytical orgs to be perfect. One will always find inconsistencies and, sometimes, obvious half-truths, but in the American case it is an absolutely defining feature of exposing oneself as simply ignorant on the culture and intentions of those who the United States counts as enemies. American enemies are those who are better at things America thinks they cannot be. Well, that's exceptionalism for you. But the US National Intelligence Council, certainly, thinks that it is smarter than  anybody else and does this:

WASHINGTON, D.C. – The National Intelligence Council (NIC) today released the seventh edition of its quadrennial Global Trends report. Global Trends 2040: A More Contested World is an unclassified assessment of the forces and dynamics that the NIC anticipates are likely to shape the national security environment over the next 20 years. Global Trends 2040 identifies four structural forces that will shape the future – demographics, the environment, economics, and technology – and assesses how they affect decisions and outcomes. It further describes five potential scenarios for the world in 2040, based on different combinations of the structural forces, emerging dynamics, and key uncertainties. It ends with a series of graphics displaying key demographic trends in nine geographic regions.

Oh, boy, economics and technology are "identified" as "likely to shape the national security environment". In related news, water is wet, wind blows and the sky is blue. But never mind, these two factors have been decisive factors in anything for much longer than the United States exists, good that somebody noticed now. I will omit here commenting on important but grossly de-scientified in the West issue of environmental change and, correctly assuming, the level of wokeness and social and cultural insanity affecting ALL US institutions today, I will leave this important issue outside of this discussion. For now. So, here is this latest Global Trends 2040. The opening salvo is devastating in one of the four scenarios of the future:

I believe this scenario was written by the same people who shot CIA recruitment videos and people who graduated "economics" programs in Ivy League schools and know Modern Monetary Theory. Of course, you will not find anywhere in this assessment how to reindustrialize the United States and concentrate resources on real innovations, other than discovering new genders and fields of "study" such as Queer studies or Constructing the Grievance Industry. Of course after this wowser they go for the favorite term in the US military-intelligence-media complex: disruptions and disruptors, meaning anything that "undermines international order", that is disappearing US, primarily self-proclaimed, hegemony.

The world is fragmented into several economic and security blocs of varying size and strength, centered on the United States, China, the EU, Russia, and a few region-al powers, and focused on self-sufficiency, resiliency, and defense. Information flows within separate cyber-sovereign enclaves, supply chains are reoriented, and international trade is disrupted. Vulnerable developing countries are caught in the middle

Actually, "Vulnerable developing countries" in Eurasia will be doing just fine and will feel very safe from being bombed by "democratic", if not queer, stand-off weapons and have their regime changed. Being caught in the middle is not such a bad proposition after seeing how successful "democratization" by the US went in Iraq, Afghanistan and other places. But then they suddenly come to a sensible conclusion, surprise!

Material Power. Military capabilities and economic size will remain the foundation of state capacity and power projection, compel-ling other countries to take a state’s interests and policies into account. These two areas of power allow states to maintain their security and to amass resources that enable other elements of power. 

In related news, water is wet, the sky is blue...well, you know the routine. And then comes the BANG!

Other major powers, including Russia, the EU, Japan, the United Kingdom, and potentially India, could have more maneuvering room to exercise influence during the next two decades, and they are likely to be consequential in shaping geopolitical and economic outcomes as well as evolving norms and rules.Russia is likely to remain a disruptive power for much or all of the next two decades even as its material capabilities decline relative to other major players. Russia’s advantages, including a sizeable conventional military, weapons of mass destruction, energy and mineral resources, an expansive geography, and a willingness to use force overseas, will enable it to continue playing the role of spoiler and power broker in the post-Soviet space, and at times farther afield. Moscow most likely will continue trying to amplify divisions in the West and to build relationships in Africa, across the Middle East, and elsewhere. Russia probably will look for economic opportunity and to establish a dominant military position in the Arc-tic as more countries step up their presence in the region. However, with a poor investment  climate, high reliance on commodities with potentially volatile prices, and a small economy—projected to be approximately 2 percent of global gross domestic product (GDP) for the next two decades—Russia may struggle to project and maintain influence globally. President Vladimir Putin’s departure from power, either at the end of his current term in 2024 or later, could more quickly erode Russia’s geopolitical position, especially if internal instability ensues. Similarly, a decrease in Europe’s energy dependence on Russia, either through renewables or diversifying to other gas suppliers, would undercut the Kremlin’s revenue generation and overall capacity, especially if those decreases could not be offset with exports to customers in Asia.      

My beef here is not with BS written about Russia--by now, there are no real professional Russoists in US "intelligence community" (speaking Russian doesn't make one a "specialist in Russia") and one should expect such idiocy, plus always consider a severe butt-hurt factor when speaking about Russia to American exceptionalists--they are still pissed off  with Russia defeating Hitler, flying first to space, having better education system, superior weapons and military history and now fast closing the gap in terms of living standard. No, you would expect that. My beef is with the bunch of morons who consider the UK a "major power". Really? How, can anyone explain it to me? Country devoid of any serious natural resources, with economy consisting primarily of FIRE, with no independent aerospace industry capable out of own resources to produce a basic commercial let alone combat aircraft, having no space program, drowning in the cesspool of multiculturalism and insidious Islamization, having a PM who is a certified idiot and being on the verge of disintegration, with Scots having a different views on the UK altogether. And yes, UK has a lone operational destroyer and her two carriers deploy a terrifying weapon--F-35B which is a...well, flies not that well, to put it mildly. 

But that doesn't prevent this "Intelligence Council" from publishing an absolutely risible, and traditionally wrong, yet another pack of BS which is filled with catch phrases and buzzwords of increasingly detached from the reality and grossly ideological American discourse in any serious professional field ranging from politics to war, to intelligence or the so called "diplomacy". If you wanted to see how decreasing intellect and professionalism manifest themselves in a society which does not produce anything but wet dreams--read this document. You cannot help them, that is how they were brought up--to be ignorant.

Monday, June 21, 2021

Russia's Pacific Fleet. Short Note.

Larchmonter445 asked me to expound on the "operational" exercises of Russia's Pacific Fleet which started before the Geneva "summit" and I start with fresh Zvezda report (in Russian) on the exercise of...sinking a Carrier Battle Group. Pay attention that in this short video the firing solution for anti-shipping missiles is calculated at 422 kilometers which is a routine over-the-horizon launch for missiles of P-800 Oniks or 3M54 Kalibr variety and the location of the exercise, which is  "in an area located 2.5 thousand miles (approximately 4.6 thousand kilometers) south-east of the Kuril Islands."

This is easily within the striking distance of Pearl by 3M14 of older versions and, depending on the positioning of the Strike-Search Group (KPUG) within the area, to San Diego by latest version of 3M14M whose range is stated above 4,500 kilometers. This all is about surface group, what is under the surface we can only guess. 

It is a little bit of a demonstration of the flag by a relatively modest size task force, which, nonetheless, packs a rather massive punch, plus good ol' combat training in the remote ocean zones is always a good idea. Considering the fact that Zircon (3M22) carrier, fully modernized Marshal Shaposhnikov, is in business at these maneuvers, one can start confidently calculate what size salvo Russia's Pacific Fleet will be able to get into the area when Admiral Nakhimov and "calibrized" Pacific pr. 949AM (Oscar IIs) such as Irkutsk, together with new Yasen-class SSGNs, starting from Novosibirsk, which is undergoing sea trials now, and follow-on of similar Krasnoyarsk, will join in. With the other two Yasens following in 2024 and 2027. All of them are carriers of 3M22 Zircons together with newest corvettes of pr. 20385 most of which are bound for the Pacific Fleet. Together with additional three pr. 22350 Admiral Gorshkov-class frigates. This is what will appear by 2025-2027, not to mention other forces.

So, as you can see, all this is a warm-up for for a much more aggressive Ocean-denial---> Ocean-control posture by Russian Navy in the Pacific, especially when Pacific Fleet's salvo will triple by 2025. There is also no doubt that such a fleet will make appearances in the Chinese ports as it has been done before and under the new circumstances all that becomes extremely significant. Especially considering a totally expected growth of the tempo of Russian-Chinese joint naval maneuvers. 

So, this return of Russia's Pacific Fleet to the ocean fits perfectly into the strategic realities of a de facto Russian-Chinese alliance and of restoration of Russia's presence in the blue waters of the ocean. So, here it is. 

Thursday, January 28, 2021

Just Yesterday I Posted About It.

Bang, today--another iteration by Tucker and Glenn Greewald of this simple idea, which so much has been written and talked about, especially by Michael Hudson, that "financial capitalism" and system it produces is basically a BS which not only does not produce anything but metastasizes into political instability both internally and abroad. 

The only thing I disagree with is this "Silicon Valley" products, much of them being as virtual as any "financial engineering". Enough to take a look at this news.

It is clear the United States is being demolished as an industrial country and, if to follow a rather convincing, albeit not perfect, theory that the United States is merely a vehicle for global finance then it inevitably leads us to a conclusion that the life of the United States as a useful economic vehicle is over and the demolition is in progress. This view, certainly, has its merits. I am sitting here with a bucket of pop-corn waiting to see the sequence of the largest cognitive dissonances in the camp of fanatic libertarians and laissez-faire enthusiasts, primarily from GOP--I do not count Democratic Party as sane political organization--who will have to now try to defend a real economy's demolition by the ideology which is in the foundation of their MO--making money, anyway they can. Again, let's recall that day in 2000

This is the start of the US industry being shipped in earnest to China. Do you see those red colors enthusiastically voting "Yea", in fact, they voted it with "fuck, yes". Those are all GOPers, and while outsourcing chipmaking is not China-related, it makes little difference for average Joe or Jane since, in the long run, they are screwed all the same. Right, the idea was: let's remove all those industries elsewhere, while we, in America, will strategize, conceptualize, interface and prioritize(c). 

In other words, do nothing but steal. I know it is almost unfair to use Russia as an example but here is how real economy looks like. This is a gigantic shipyard being built in Murmansk Region by energy giant NOVATEK. The shipyard will produce floating natural gas liquification plants, aka GBS LNG platforms. The scale is massive. 

Or this:
You can see the video (in Russian) here. 15,000 people are building this monster with a dry dock of 415 meters. Considering that the whole thing is also needed for "other" projects which may or may not be of pure LNG nature (wink, wink). Having said all that, here is another picture which gives the impression of an immense scale of the construction.

So, Russia taking the third place in global shipbuilding is not just inevitable but merely a matter of a relatively short time. This also is a cushion, of sorts, if Europe succumbs to US pressure and rejects Nord Stream-2, Russia's LNG will still be much cheaper than any alternative. Rostislav Ishenko recently stated that NS-2 for Russia is now primarily a political matter, rather than economic one, because Russia will do just fine without NS-2, which I happen to agree with, but she shouldn't give up on it for geopolitical reasons. Maybe, but in the end, Russia is not responsible for Europe and if the US manages to shut down NS-2, let Europe live with the consequences. European intransigence is Europe's problem, Russia's future in any case is NOT with Europe in general. But as they say, we'll see about NS-2. Maybe Germany will find a spine at some point of time. If not, to hell with them all in EU. But this was my position for years now, for all my OK awareness of the geopolitical factor, but at some point of time one has to consider pure economic sense.

Sunday, December 13, 2020

Today Russia Declines Especially Fast And Dramatically.

You know, more dramatically than Russia declined in 2000s, than in 2010s, and now heading into 2020s this decline is especially noticeable. Moreover, 2020s decline is comparable to Russia's decline in 1240s, then Russia's disappearance after 1380, it also somewhat reminiscent of Russia's impending disintegration in 1605-1618, and it could certainly be reminiscent of Russia's absolute demise in 1812, not to speak of 1945. How do we know this? Very simple, a specialist in Russia's decline General Mark Milley, currently the Chairman JCS, said so in his interview to WSJ yesterday. But we all know that Russia is on the verge of a decline and disappearance for the last 1200 years, so--any minute now. Milley, however, having said that added that Russia is a Great Power and that it is because of the excellent armed forces. Now, I quote from Ria which quoted from WSJ, which is behind a paywall. 

Translation: Russia is a great power. There is no doubt about it because of her capabilities <...> Russian military people are very good, no questions about it. Russians have very combat capable and professional army. It is relatively small compared to the Soviet times, but is very very combat capable. 

This illustrates my point I made yesterday when discussing Andrei Raevsky's article about NATO and EU "messages" and which I make non-stop for decades, that the only people left in the US who have a degree of global situational awareness are American military. They have to be. As Larchmonter445 observed correctly today, and I quote him:

Who is not unaware are the specialists within the national security structure, Intel, DOD and the permanent transient officials who permeate NSC. They don't talk. They aren't experts on cable. They are analysts who study every word, action, feint, and surprise move by Putin and Russia. They are the human circuit breakers who will act rationally when the shit and fan are getting too close. You might say they are the real translators who tell the US leadership what they don't want to hear. They assure the bozos, clowns, psychopaths and warmongers that 20 minutes might be twice as long as they have to say their goodbyes if they go one inch forward to poke the bear. They read Andrei's works and his blog. They read The Saker and Orlov. They understand what Lavrov means. They now East from West. They are realists.

I agree. The "messages" are not for US or West's political elites--those are morons with no integrity or principles, they are also ignorant on any serious military matter. These messages are for American professionals who understand and have a grasp of consequences and can articulate those to civilian ignoramuses who run disintegrating West. In the middle of a Russiagate bacchanalia in the last 4 years, in the midst of severe bouts of Russophrenia at the Capitol and in US media the only sober assessments were coming from US military, especially from a guy from DIA--his testimony stood out. Listen to former DIA Chief Lieutenant-General Vincent Stewart. This is how real professionals talk. No political BS, cold hard facts. 

Sadly, this expertise is shrinking even at the top military level with increasing number political top military brass being increasingly less competent as the time passes by. But at least, articulation by Milley, granted with now required mantra of Russia's decline (of course), is the first such admission coming from the top of the American military-political elite conveyed by what is considered main American business publication. Hm, progress. Don't get me wrong--I do not overplay the importance or competence of the American military, but in purely military terms the United States still has a fast closing window of opportunities to seek politically important military "victory" (what kind of victory is a separate issue) against China. NATO, however, has no chance of defeating Russia, even if it tries to gather some force to challenge Russia in Europe--a very bad idea any way you look at it and Milley's words are a testimony to that. Considering utter military incompetence of National Security "team" Biden brings to WH in case he declared tomorrow President-elect, this is assuring, that US military will inform whoever may decide to issue a suicide order that they may simply lose the country even without the use of the nuclear weapons. With them? In this case we may only hope that there will be enough patriotic people who will stop this insanity. Usually these are military people.   

Tuesday, April 28, 2020

Quoting Michael Hudson.

You all know my attitude towards Michael Hudson as one the brightest economic minds of our time. Here is a quote from one of his latest interviews, as always, loaded with insights and food for thought. 
How do we know that payments in gold bankrupt warring parties? Simple, really. Check where did British gold reserves go in the time span between September 1939 and the end of 1940. The whole mechanism of Great Britain becoming a financial lap dog of the United States throughout WW II is extremely well described  by Barnett. 
The last months of England's existence as a fully independent great power, able out of her own resources both to maintain her national existence and to wage war, passed away.  By the third quarter of 1940 the volume of British exports (including munitions for the empire) was down 37% on 1935. By the turn of the year 1940-1941, the dark mid-winter of the Blitz, England's stock of gold and dollars was near exhaustion... For obvious reasons the advent of "lend-Lease" was represented as an act of unparalleled generosity. In fact, it was clearly to America's advantage that American weapons should be carried into battle by fighting men of England and Empire rather than the sons of American mothers. Even after United States entered the war in December 1941--and not then by her own volition--it was still clearly to her advantage that England should be enabled to wage the war on far greater scale than would have been possible on English resources alone. 
United States, obviously, learned her lessons from British WW II experience and recognized that to fight the real war one needs a lot of gold, or, as it turned out in 1970s when Nixon took the United States, which by then lost Vietnam War, from gold--IOUs. Yes, IOUs which are built around, well... let Michael Hudson speak:
The gunboats don’t appear in your economics textbooks. I bet your price theory didn’t have gun boats in them, or the crime sector. And probably they didn’t have debt in it either.
Modern Western "economists" do not operate with power element at all--it is beyond their grasp because unlike some financial theories, military power requires a much higher level of education and knowledge. Economists do not study physics, systems' integration, chemistry or weapons' design, not to mention operations, in the West they also do not study real economics. Yet, all this IOU (or T-Bills and other paper) alternative universe collapses the moment American IOUs lose the main factor behind their forceful "validity"--US military power, or, rather, myth of it and the threat to use it in case some renegades decide not to "trust" IOUs. Do not believe me, even as early as 2015 there were numerous calls from inside US "analytic" community to consider military operations against Russia. I recently wrote about one such ignoramus, George Fridman, who described in 2014 how Russia will be defeated in Ukraine by combined NATO forces. Yes, they ARE that dumb. 

I am not saying anything new here, once the myth of the US military power began to be destroyed in public space, everything else started to follow. By 2018 it was clear that United States cannot win conventional conflict with Russia not only in her vicinity, which was the case since 2010, but even in Europe. I am not talking about nuclear one, because this kills all other reasonable outcomes and expectations. Once you cannot win the war, what's your next step, what's you next default position, so to speak? Right, money, currency and financial "instruments" manipulation. Indeed, China buys Russian oil and gas and pays for it in Yuan or Euro, what can the United States  do about it? Attack Russia or China? Well, we know what's going to happen. So, the only instrument left are sanctions and financial sabotage. But that doesn't change the fact that China and Russia trade, at least significant part of their trade, in Rubles and Yuans. China is  much more vulnerable to intimidation and  blackmail than Russia, but still, this doesn't change the fact that China is not Venezuela or Iraq and she cannot be invaded without the United States sustaining catastrophic losses. 

The fact that US "elite" is incompetent across the board is not a secret anymore to those who matter, and those are China, Russia and, to a degree, Iran as an emerging regional superpower. So, as Hudson states, and I subscribe to his every word here:
By waging this economic warfare against China to protect America monopolies, America is integrating China and Russia. And probably the leading Chinese nationalist in the world, the leading Russian nationalist, is Donald Trump. He’s saying, “Look boys, I know that you’re influenced by American neoliberals. I’m gonna help you. I believe that you should be independent. I’m gonna help you Chinese, Russians and Iranians to be independent. I’m going to keep pushing sanctions on agriculture to make sure that you’re able to feed yourself. I’m gonna push sanctions on technology, to make sure that you can defend yourself.” So he obviously is a Chinese and Russian agent, just like MSNBC says.  
Ability to integrate a complex interaction between military and economic factors  into systemic and easily grasped picture is not there in the US. The whole generation (or two) of the economic ignoramuses who can operate only in the world of neo-liberal voodoo and reign of financial capital has emerged since the collapse of the Soviet Union and it is incompetent, not able to face the realities, especially military realities of the 21st century, which define the catastrophic departure of the United States from her real, and perceived, greatness. "Economy" built on speculation and selling the snake oil of IOUs, or which depends on such news as this:
Is not sustainable, especially when it lost its power to coerce anyone who matters into believing that Wall Street IS the economy, which it is not. But we all are yet to face unfolding reckoning of REAL valuation and that will shake the global economy to its foundation. Just some thoughts for today.   

Thursday, April 23, 2020

Here Comes A Double Whammy.

This blog wrote on a number of occasions that US LNG is simply not competitive with pipeline gas practically anywhere in Eurasia EVEN without considering pure geopolitics (or geoeconomics as this term begins to enter a conversation) with the United States desperate attempts to sabotage Nord Stream-2. It is just the fact of life and technology (as in extraction, processing, liquification etc.). Poland, of course, thinks otherwise and is ready to pay about third more for US LNG, but it is Poland and basic economic logic doesn't apply there. But here comes this double whammy, which so far was merely in the background:
So, these are not good news for the US "energy independence", because as even Bloomberg admits: 
The move is significant as it shifts the premium that gas in Asia and Europe has historically commanded over U.S. prices and adds a hurdle to American LNG exporters looking to boost sales to those regions. Buyers of U.S. fuel have canceled at least 12 cargoes for June loading, and traders estimate that more than 20 shipments could have been canceled for the month.
In general, the picture is not good since ramifications are wide and long lasting. It is one thing when Scott Ritter explains how things "will go from here" in terms of turning from net-exporter to net-importer of energy for the United States:
And, mind you, actual cuts will be huge, much bigger, once the ball gets rolling and this will require a serious processing of new economic reality. But Daniel Larison came up today with a headline which was and is in heavy use here. How about that: 
But Larison, correctly identifies a strategic conundrum:
Our dominance in the world is in the rear view, yet Trump and other pols refuse to get the message.
This is the danger of which I warn non-stop. Stumbling into the conflict in which the United States cannot, which is pretty much anywhere in Eurasia, win may initiate a sequence of the events which may lead to a global thermonuclear catastrophe. larison, reviewing this newest book: 
    

Notes:
While the authors are quite critical of Trump’s foreign policy, they don’t pin the decline of the old order solely on him. They argue that hegemonic unraveling takes place when the hegemon loses its monopoly over patronage and “more states can compete when it comes to providing economic, security, diplomatic, and other goods.” The U.S. has been losing ground for the better part of the last 20 years, much of it unavoidable as other states grew wealthier and sought to wield greater influence. The authors make a persuasive case that the “exit” from hegemony is already taking place and has been for some time.
I write about this for years and what makes me slightly more hopeful in this truly hard time for everyone, including for majority of Americans who are already squeezed to the breaking point, is the fact that some "establishment" academic and policy-making figures begin to speak about this fait accompli more and more. It is also symptomatic that this book (I am still deciding if to buy it--I have a profound allergy to US political "science" lingo) is focused heavily on Russia (of course, China too) and finally speaks, from what I observed so far, in terms of actual.... tangibles: goods, military power, real economy. It also discusses liberalism. But in the end, Larison concludes with this:
The coronavirus pandemic has exposed how misguided our priorities as a nation have been. There is now a chance to change course, but that will require our leaders to shift their thinking. U.S. hegemony is already on its way out; now Americans need to decide what our role in the world will look like afterwards. Warmed-over platitudes about “leadership” won’t suffice and throwing more money at the Pentagon is a dead end. The way forward is a strategy of retrenchment, restraint, and renewal.
He basically spells out what Russia (Putin) were offering the United States for more than a decade. The calls have been dismissed and it may not be just up to the Americans alone anymore to decide the role the United States will play "afterwards" but only within the framework which is emerging as I type this.