Showing posts with label Osaka. Show all posts
Showing posts with label Osaka. Show all posts

Friday, June 28, 2019

Stephen Cohen Makes Mistake(s).

I do follow Stephen Cohen's thoughts on international relations in general, and Russian-American relations in particular, but while having respect for his courageous and honest position on the subject, it doesn't mean that I agree on everything with him. His latest piece in The Nation with the title Will US Elites Give Détente With Russia a Chance? is not exactly an exercise in precision forecasting. To start with the question in the title, the answer is extremely simple: Absolutely NOT. Detente between the United States and Russia is impossible in principle at this stage for a number of an extremely important reasons ranging from the America's loss of military-technological parity and overall decline, both relative to others and in absolute terms, of the main instrument of American foreign policy, her military, to a near catastrophic economic outlook for the United States. This major, in fact, defining military-technological factor of the American thinking eludes Stephen Cohen, as it does overwhelming majority of American political scientists. And then, of course, there is a growing recognition within Russia of her own role of an emerging power pole and the center of global influence. Finally, did anyone take a stock of US "elites" recently? The decline, even compared to 1980s, of intellectual level is astonishing. Isn't rather sorry present state of the United States a good indicator of those "elites" quality, or, rather, lack thereof? Remaining American common sense realists (and even this term requires serious elaborations) and patriots are literally removed to the fringes of political power and have very little say in a disastrous US foreign policy. Did Stephen Cohen ask himself lately when was the last time the US won any war?

Now we come to this ever important economic issue. Make no mistake, Russia's economic problems are by no means something to be sneezed at, not at all. But it also has to be understood that typical Western monetarist criteria (Cohen, being namely American scholar hardly operates far beyond those criteria) give an extremely distorted picture of Russian economy. Cohen makes an assertion:
Putin’s domestic problem, on the other hand, is economic and social. Russia’s annual growth rate is barely 2 percent, real wages are declining, popular protests against officialdom’s historically endemic corruption are on the rise, and Putin’s approval rating, while still high, is declining. A public dispute between two of Putin’s advisers has broken out over what to do. On the one side is Alexei Kudrin, the leading monetarist who has long warned against using billions of dollars in Russia’s “rainy day” funds to spur investment and economic growth. On the other is Sergei Glaziev, a kind of Keynesian, FDR New Dealer who has no less persistently urged investing these funds in new domestic infrastructure that would, he argues, result in rapid economic growth.    
It is a "loaded" statement, very recognizably affected by Moscow's rumor mill, but let's start with pointing out what is going on here:

1. This "growth" thing. Here is World Bank's assessment:
Real GDP growth in Russia surpassed expectations in 2018, reaching 2.3 percent, mostly due to oneoff effects of energy construction. Forecasted growth of 1.2 percent in 2019 and 1.8 percent in 2020 and 2021 reflects a more modest outlook.Russia’s macro-fiscal buffers remain strong, with fiscal surpluses across all tiers of government and low public-debt levels. When compared to advanced economies, Russia spends less on health and education. Rebalancing in favor of these categories could improve the overall efficiency of public spending. Short-term inflationary risks have abated, with the Bank of Russia signaling a return to a neutral policy rate. Lending activity is recovering, but the banking sector remains afflicted with high concentration and state dominance. Having eased slightly, the poverty rate remains in double digits with many households close to the poverty line and lacking formal employment. Informal employment is rising in the face of close-to-zero net job creation by medium-sized and large formal enterprises.
Did you catch it? Not enough lending for GDP growth, which is, in normal economies, is a sign of, well...look at the US and her corporate debt. 
So, Judging Russia using criteria which provide, mostly virtual, "growth" of Western economies, is akin to judging Russia's military power in Power Projection Forces, which Russia not only doesn't need but will have a fairly easy time defending (that is to say sinking) against them.  

Now, let's take a look at, indeed, the real growth which is defined by, and you have guessed it already, industrial and agricultural fields primarily--the fact denial of which is in the foundation of not only lousy, to put it mildly Western forecasts and "intelligence" on Russia, but also in the foundation of, say, American delusion about true size and capability of own economy. Here is a verified data (from Russia herself) on manufacturing following a dip in January 2019.

This is what really defines an actual state of economy and while still represented in monetary (Ruble) units one requires a serious review of overall industrial and agricultural development to have a real feel of economic trends. Yes, there are issues with stagnating wages, yes, there are also issues with poverty, but that is precisely a leftover from monetary policies which kept inflation in check while Russia remains under the unprecedented economic sanctions. And here Cohen makes a huge mistake, Russia's presidential elections were not about electing just President, they were about electing a Commander in Chief first and foremost. One has to keep in mind this crucial distinction.

2. Putin's ratings do not decline, in fact, they remain steady and high when the question of "do you approve of President's work" is asked.
Opinions of American pollsters are not welcomed--they are as fake as US main stream news organizations. In fact, as I stated not for once, most of information on Russia circulating today in the West, unless in is obtained and explained by serious intelligence-analytical organizations (and even then...), is basically a trash. Data provided by Russian media and statistical institutions, even by officially registered as "Foreign Agent" Levada Center (most of Russian "business" media should be also registered as such) proved to be much more reliable and truthful. In terms of identifying short and long trends, for sure. 

3. In this case I also don't get the significance of Cohen elaborating on supposedly "breaking out" of a TWO DECADE+ long discussion between Kurdrin and Glaziev. What's so significant about this massive public discussion in Russia, which is represented widely in media, between Western monetarists and Keynesian-leaning economists? While this discussion, which is not even a news, continues, Russian state returned under own control more than 70 percent of strategic industries and most resources. So, what's so significant about Kudrin saying something? Everybody in Russia knows what he is going to say, but instead of wasting time on his beaten to death arguments, one should really pay attention to how Russia ignored recent Davos forum and why SPIEF grows in global importance. I do understand frustration of "advanced" liberal Russian office plankton and hipster hamsters with Putin, after all they have huge opinion about their very mediocre abilities, but their "protestations" have little effect on a massive shift of Russia away form liberal policies. Russia has money today, it is just the decision on how to open this stream into economy without dis-balancing fairly well-established financial indices, is not made yet.    

So, what struggle Stephen Cohen talks about when states:
It seems unlikely that President Trump or any of the advisers currently around him understand this important struggle—and it is a struggle—unfolding in the Russian policy elite.
I don't know. This struggle, like this discussion, mentioned above, between Kudrin and Glaziev is unfolding now for what, 15 years, maybe 17? As events with Abyzov show, so called "liberal" pro-western "elite" in Russia begins to understand that the only person who separates them and the nooses on the lamp posts, or sharp pitchforks, is none other than Vladimir Putin and his team. In the end, somehow, Putin lately (few months, at least) comes across more and more as a person of a cool and even relaxed disposition who knows that what is needed to be done is being done. 

So, while Russia has some serious problems and there are some protests, I can vouch for this simple fact: MOST--I don't know, 70%, 80%--of population of Russia knows what their country faces today and what it is up against, and that is the main reason why Russia increasingly sought as an ally, no matter if her economy grows 2% (sure, Russia doesn't have Wall Street to fake economic data) or 3%, especially against the background of a tectonic change in global power balance, which Russia and China drive. And while Stephen Cohen's instincts and appeals are good and laudable, he exhibits the same trait characteristic of American Russian Studies field, he misinterprets Russia dramatically. I know, I am writing about this for years. I am almost forced to recall truism attributed to Metternich "Russia is never as strong as she seems, she is never as weak as she seems". Stephen Cohen is a wonderful man and a frequent guest of Russia--I think it is about time we all start operating with hard cold facts. As per summit--do not expect much from it, just another photo-op. United States is NOT treaty-worthy party anymore, especially her current POTUS, so let's drop any pretenses that anything will change between Russia and the United States. No Detente is in plans. Let's say thanks that they at least talk to each-other.   

Why It Matters Very Little.

I mean Putin and Trump's meeting in Osaka. Here is one such reason:
Moscow and Beijing have inked an intergovernmental agreement to switch to national currencies in bilateral trade and boost cross-currency settlements up to 50 percent as they ramp up efforts to move away from the US dollar.The document was signed by Russian Finance Minister Anton Siluanov and the head of the People’s Bank of China, Yi Gang, earlier in June, Izvestia reports.Moscow and Beijing are currently developing new mechanisms of cross-border payments between Russian and Chinese businesses, the newspaper said, citing a letter from Deputy Finance Minister Sergey Storchak to Anatoly Aksakov, the head of the financial market committee of the State Duma (lower chamber of Russia’s parliament). The two sides may settle payment gateways between their domestic alternatives to the traditional SWIFT system, Russia’s System for Transfer of Financial Messages (SPFS) and China’s Cross-Border Inter-Bank Payments System (CIPS).
In the same time it is a very good move to invite Trump to celebrate 75th Anniversary of Victory in Moscow, especially if Western Allied troops will take part in the Red Square Parade too. In 2010 it did happen and it was a wonderful exhibit and experience, this is not to mention that scores of Americans, British, Canadians etc.  now attend Immortal Regiment marches not only in home countries but visit Moscow, St. Pete (Leningrad at Victory Day) and other Russian cities. 
I am, however, upset with Putin (wink, wink)--how could he on the eve of my next book's release steal my thunder, LOL. This is so unfair. 
Globalization and the ‘liberal idea’ have failed Europe and the US, while post-Cold War chaos is driving crises in Venezuela and North Korea, but was stopped in Syria, Russian President Vladimir Putin said in an interview to FT. In a lengthy interview with the UK-based Financial Times on Wednesday, Putin candidly addressed questions about the Russian intervention in Syria – and lack thereof in Venezuela – as well as nuclear proliferation, North Korea, immigration policies in the US and Europe, Russian economy, relations with the UK, and the failure of what he called the “liberal idea” to provide for the people’s well-being.While the Cold War was bad, Putin told FT’s Lionel Barber and Henry Foy, “there were at least some rules that all participants in international communication more or less adhered to or tried to follow. Now, it seems that there are no rules at all.”
Vladimir Vladimirovich, don't do this to me anymore, please;-))) On a serious note, though, what possibly was missed, is when Putin explicitly called Merkel's immigration policy "a cardinal mistake" (in Russian), in his interview to Financial Times. I wonder what is his opinion on American immigration debate? I have a very clear idea, quoting Putin himself, humanitarianism is fine, "but what about interests of own population, when refugees count is not in couple-three dozens people, but is in hundreds thousands of those who arrive to Western Europe?"(c) So, who is more European, then? Some "lefty" psychos will call this "meddling" in Europe's internal affairs. It is not, it is a sentence and diagnosis of a political crime being committed against indigenous population of Europe, and white European-root population of the United States. Again, recall Putin's monologue at Valdai in 2017. I think, in the long run, he and many people in Russia do understand that Russia may become a refuge for European keen. Today, we can only see some foggy shapes of the emerging new world order, if we all avoid a war, we may see in 10 years an unrecognizable international system. As per Putin-Trump meeting, do not take much of it too seriously. Trump decided to let go at least informed adviser on Russia, Fiona Hill. Rumors are, some close John Bolton's creature will take the post. Wonderful.  

Wednesday, June 26, 2019

Redundant?

I seldom read Russia's so called "business" media having a very good idea who and how "reports" in them--I do have my own professional reasons to not take opinions of graduates of elite Moscow and St.Pete's humanities universities, working in those media, seriously on any geopolitical and military issue related to world at large in general and Russia in particular. The record of Kommersant, RBC, not to mention all other so called "pro-western" heavily liberal publications, of serving outright lies, recall Saponkov's affair or BS on carbon fiber by this very Kommersant, among many other, so called "cutting edge" (euphemism for Russophobia) media, is "impressive". Yet, even Kommersant couldn't stay silent on this: 
Не успевая следить за переменами в умонастроениях Дональда Трампа и силясь понять, встретится ли он в Осаке с Владимиром Путиным, все просмотрели главную сенсацию. На саммите G20 в Японии пройдет не планировавшаяся ранее встреча лидеров России, Китая и Индии. Ее инициатором стал индийский премьер Нарендра Моди, от которого такого предложения еще недавно ждали меньше всего.....   Однако перед саммитом G20 в Осаке выяснилось, что «треугольник» Евгения Примакова — не мертворожденный прожект. Просто по-настоящему востребованной эта идея становится только сегодня. Заявления о том, что взаимодействие Москвы, Дели и Пекина базируется на общности подходов к ключевым вопросам мировой политики, в современных реалиях перестают быть пустым звуком. При этом попытки президента Трампа вернуть мир в эпоху протекционизма и диктата из Вашингтона, одинаково неприемлемого для Москвы, Дели и Пекина, становятся еще одним аргументом в пользу их сближения. В итоге Россия, Индия и Китай осваивают большую Евразию на троих, и четвертый — Дональд Трамп — здесь лишний.
Translation: While failing to keep up with Donald Trump's mood changes and trying to figure out if he is going to meet Vladimir Putin in Osaka, everybody oversaw the main sensation. The summit of G-20 in Osaka will see not planned initially meeting of leaders of Russia, China and India. This meeting was initiated by India's Premier Narenda Modi, from who such an initiative was expected least of all... However, before summit of G-20 in Osaka it became clear that (late) Evgenii Primakov's "triangle" wasn't stillborn after all. It is just that this idea is becoming in demand only today. Statements about cooperation of Moscow, Delhi and Beijing being based on commonality of approaches to key issues of global politics in modern realities are stopping to be just empty declarations. In the same time, President Trump's attempts to return the world back into the era of protectionism and Washington's dictate, equally unacceptable for Moscow, Delhi and Beijing, are becoming yet another argument in favor of their rapprochement. As a result, Russia, India and China muster Eurasia for three of them, while the forth--Donald Trump--is redundant here.

Talk about "hitting reality" at a high speed by Kommersant. If they publish such materials, that certainly means that at least some soul-searching is going on. In the end, hey--they are "business" publication for people who like to make money. There is a lot (like really huge sums) of money to be made at India's and China's markets and Russia, sure as hell, has quite a few things to offer from hi-tech, to hydrocarbons and their derivatives, to agriculture. Ah, yes, forgot completely, we are talking about the market with population of more than 5.2 billion. That is around 70% of population of the planet. Well, if Kommersant begins to get it, can you imagine the scale of realignment in geopolitical, economic, cultural, in the end, philosophical, senses unfolding in a front of our eyes. It is unprecedented. It is also not accidental that "suddenly" this pathetic collection of European clowns, also known as Parliamentary Assembly of Council of Europe wants Russia back with full rights, she was denied after Crimea's return. My position on this issue was and remains consistent: Russia has NO business in this degenerate organization, she should abstain paying a single Ruble to it, and must demand public apology from them for lying about the tragedy of MH-17, which was shot down by Ukrainian banderistas. But, whatever. 

Europe in all that is just a business entity for Russia and European modern "culture" should be denied entrance to Russia. Europe can keep her sodomy, pederasty, gender "democracy" and green energy, among other similar perversions, to herself. If Europe, most likely country by country, ever cures herself--then there will be the subject for discussion between nominal Europe and Russia about what the real West is. As per United States, DJT continues to do a swell job in isolating the United States thus making sure that economic collapse may reach catastrophic proportions. But, hey, as long as he is winning, he will stay redundant.