Tag Archives: China

Eurasia Takes Shape: How the SCO Just Flipped the World Order, by Pepe Escobar

Lately Russia and China have been much more successful with their various initiatives across Eurasia and the Middle East than whatever the Western powers have been trying to do in those areas. From Pepe Escobar at unz.com:

As a rudderless West watched on, the 20th anniversary meeting of the Shanghai Cooperation Organization was laser-focused on two key deliverables: shaping up Afghanistan and kicking off a full-spectrum Eurasian integration.

With Iran’s arrival, the SCO member-states now number nine, and they’re focused on fixing Afghanistan and consolidating Eurasia. Photo Credit: The Cradle

The two defining moments of the historic 20th anniversary Shanghai Cooperation Organization (SCO) summit in Dushanbe, Tajikistan had to come from the keynote speeches of – who else – the leaders of the Russia-China strategic partnership.

Xi Jinping: “Today we will launch procedures to admit Iran as a full member of the SCO.”

Vladimir Putin: “I would like to highlight the Memorandum of Understanding that was signed today between the SCO Secretariat and the Eurasian Economic Commission. It is clearly designed to further Russia’s idea of establishing a Greater Eurasia Partnership covering the SCO, the EAEU (Eurasian Economic Union), ASEAN (Association of Southeast Asian Nations) and China’s Belt and Road initiative (BRI).”

In short, over the weekend, Iran was enshrined in its rightful, prime Eurasian role, and all Eurasian integration paths converged toward a new global geopolitical – and geoeconomic – paradigm, with a sonic boom bound to echo for the rest of the century.

That was the killer one-two punch immediately following the Atlantic alliance’s ignominious imperial retreat from Afghanistan. Right as the Taliban took control of Kabul on August 15, the redoubtable Nikolai Patrushev, secretary of Russia’s Security Council, told his Iranian colleague Admiral Ali Shamkhani that “the Islamic Republic will become a full member of the SCO.”

Dushanbe revealed itself as the ultimate diplomatic crossover. President Xi firmly rejected any “condescending lecturing” and emphasized development paths and governance models compatible with national conditions. Just like Putin, he stressed the complementary focus of BRI and the EAEU, and in fact summarized a true multilateralist Manifesto for the Global South.

Right on point, President Kassym-Jomart Tokayev of Kazakhstan noted that the SCO should advance “the development of a regional macro-economy.” This is reflected in the SCO’s drive to start using local currencies for trade, bypassing the US dollar.

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Are the US and China Stumbling Toward at ‘Islands War’? by Patrick J. Buchanan

Fighting over a bunch of islands in the South China Seas does not look like a good odds bet for the US. From Patrick J. Buchanan at buchanan.org:

In a diplomatic coup, Prime Minister Scott Morrison announced a deal last week with the U.K. and U.S. to have those Anglo-American allies help build a nuclear-powered submarine fleet for Australia.

A $66 billion French deal to provide Canberra with diesel electric-powered submarines, among the largest defense contracts Paris had ever negotiated, was blown off.

“A stab in the back!” said Foreign Minister Jean-Yves Le Drian, who had been kept in the dark on the secret talks. “There has been duplicity, contempt and lies.” Le Drian compared President Joe Biden to former President Donald Trump.

President Emmanuel Macron recalled his ambassadors to both the U.S. and Australia. In two centuries of U.S.-French diplomatic relations, no such recall had ever occurred.

What does this Australia First submarine deal mean?

Canberra, which has sought to steer a middle course between its great customer China and its great ally America, is coming down on the side of the Americans in the rising great-power quarrel.

This “AUXUS” partnership, says Beijing, will “severely damage” peace and stability in the Indo-Pacific, and Beijing is demanding to know whether Australia regards China as a “partner or a threat.”

This new clash comes as China is using its military to speak for its claims to islands and islets hundreds of miles off its coast.

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Patrick Lawrence: The Empire’s Last Stand

Cold War II has been declared by the Biden administration, and it’s not going to go well. From Patrick Lawrence at consortiumnews.com:

In the early months of 1947, President Harry Truman and Dean Acheson, his secretary of state, made up their minds to prop up Greece’s openly fascist monarchy against a popular revolt they had cast as a Soviet threat. After much hand-wringing, Truman went to Congress on March 12 to ask for $400 million in aid, not quite $5 billion today when adjusted for inflation.

Truman and Acheson knew the Greek intervention would be a hard sell: Congress was in no mood to spend that kind of money, and the war-weary public harbored hope for FDR’s vision of a postwar order built on the principle of peaceful coexistence. As the speech went through its multiple drafts, Arthur Vandenberg, Republican senator from Michigan and a presence in the planning of America’s postwar posture, offered advice that must be counted elegantly forthright, if diabolic in its cynicism.

It comes down to us today, and for good reason. “Mr. President,” Vandenberg said during White House deliberations, “the only way you are ever going to get this is to make a speech and scare hell out of the American people.”

Truman made his since-famous “scare hell” speech. The Greeks got their $400 million (a remarkable proportion of which was embezzled by government ministers), and the American public was kept scared for the next 40–odd years — the Cold War years.

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That ‘Other’ Reset Unfolding Across West & Central Asia, by Alastair Crooke

Most of Asia and the Middle East, and much of Africa, are resetting towards Russia and China. From Alastair Crooke at strategic-culture.org:

All of Central Asia is re-setting towards the SCO, EAEU, Russia and China. The former is now ‘lost’ to the U.S., Alastair Crooke writes.

The shock of Afghanistan imploding – as if blown away in a puff of wind – plus the frantic U.S. scramble to get away, even as loyal local retainers, and billions of dollars’ worth of baggage were left abandoned on the tarmac, has triggered a political earthquake that is unfolding across Asia. The ‘ground zero’ (i.e. the U.S.) to a complex network structure has been pulled out on old and settled structures and relationships.

In a very real sense, Washington was the hub: and states – particularly Gulf States defined themselves more in relation to the hub – than to each other. Now those relationships, and associated policies, many of which were geared to pleasing and being favoured by the hub, are up for radical review.

Recently, the lately-returned Israeli Ambassador to Washington, Michael Oren (a Netanyahu appointment), warned a key Israeli commentator, Ben Caspit, in respect to Israel’s future options, to pause. Israel, of course, unlike others, is actually an integral part of the ‘hub’, and not a ‘spoke’, like other states that do have some modicum of space by which to re-order their network connections. Israel however, only has outwardly projecting vectors of external relations based on a strict calculus of Israeli interest. It has had no notion of any wider regional interest – only its own.

Ambassador Oren gave this advice to Caspit: Before settling on our Israeli options, we need to see where the Afghan withdrawal leaves the U.S., too. Where will it be? He noted that in the wake of the fall of Saigon, the U.S. had embarked on a series of diplomatic initiatives. Can it be this (such as reinvigorating regional normalisation with Israel), or will the U.S. sink into the mire of its divisions?

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The US Desperately Needs To Rethink Its Middle East Strategy, by Paul Sullivan

Playing nice in the Middle East is winning China and Russia more friends than the US’s bullying. From Paul Sullivan at oilprice.com:

Is the Middle East still important? This is a seemingly absurd question, yet some are asking this in Washington. The Middle East is the source of massive reserves in oil and gas. Much of the fuel to produce goods and trade from Asia and the EU comes from the Middle East. Much of the world economy relies on Middle East energy. The region has strategic chokepoints like the Strait of Hormuz, The Suez Canal, and The Bab al Mandab. It is a source of some of the more significant threats in the world, such as from ISIS, Al Qaeda, and other groups. It contains some of the most important security connections in the world. Consider the neighbors of the Middle East and not just the Middle East. The Middle East is a crossroads for energy and security. It also could be one of the generators of change and improvement, if it is allowed and supported to do so.  However, as the U.S. becomes more focused on “The Great Powers Conflict” in Asia, especially with China, it is becoming clearer that the U.S. is losing the plot in the Middle East. Consider the slow to no reaction to the shipping of Iranian fuel with the help of Hezbollah and Syria to Lebanon.

The U.S. could have done many different things to help the Lebanese with this without handing a massive public relations and political victory to its adversaries. But, in some ways, Washington’s sanctions have painted it into a corner on such issues. Consider how the U.S. took the anti-missile batteries from Saudi Arabia as the Houthis are still attacking Saudi Arabia with missiles. The Saudis made a deal with the Russians in response to this and other moves by the U.S. The U.S. handed leverage to the Russians. These are just two of many examples of how the plot is being lost.

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BlackRock and Citi Get on Board the Climate Nazi Train, by Chris MacIntosh

China occasionally talks a good “green” game, but it keeps on building coal-fired power plants. From Chris MacIntosh at internationalman.com:

There are some things that bring joy to my soul. My pleasures are simple ones. Peanut butter on toast (the food of gods), witnessing Macron getting a slap, and this…

The awesome thing here is that what is taking place is that our competition on bidding for coal assets has disappeared in a cloud of woke smoke.

This will quickly become geopolitical, and the question is this: can BlackRock, Citi, Prudential, HSBC, and their other woke mates decide the fate of nations?

They are already affecting the fate of nations. Witness Canada and all of Western Europe.

I found a live shot of their respective energy policies:

But will they do the same to China? Will they do the same to Russia?

The answer to that will only be fully revealed in the due course of time, but we don’t really need any crystal balls here as we just watch actions, not words.

“China put 38.4 gigawatts (GW) of new coal-fired power capacity into operation in 2020, according to new international research, more than three times the amount built elsewhere around the world and potentially undermining its short-term climate goals.”

Nearly all of the 60 new coal plants planned across Eurasia, South America and Africa — 70 gigawatts of coal power in all — are financed almost exclusively by Chinese banks”

We see all of this on the ground, and while it is taking place, formerly reputable media outlets such as the FT, Reuters, and Bloomberg tell us that: “China’s belt and road initiative creates a problem for China with respect to their climate goals.”

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What US Defeat in Afghanistan Means for China, by Alfred W. McCoy

The US government will not bounce back on the world stage as it did after Vietnam. From Alfred W. McCoy at consortiumnews.com:

For the implications of U.S. global power, the collapse of Kabul was incomparably worse than the fall of Saigon, writes Alfred W. McCoy. 

Chinese cargo trucks awaiting Pakistan customs clearance in 2007 at Sost, the last town inside Pakistan before the Chinese border. (Anthony Maw, CC BY-SA 3.0, Wikimedia Commons)

The collapse of the American project in Afghanistan may fade fast from the news in the U.S., but don’t be fooled. It couldn’t be more significant in ways few in the country can even begin to grasp.

“Remember, this is not Saigon,” Secretary of State Antony Blinken told a television audience on Aug. 15, the day the Taliban swept into the Afghan capital, pausing to pose for photos in the grandly gilded presidential palace. He was dutifully echoing his boss, President Joe Biden, who had earlier rejected any comparison with the fall of the South Vietnamese capital, Saigon, in 1975, insisting that “there’s going to be no circumstance where you see people being lifted off the roof of an embassy of the United States from Afghanistan. It is not at all comparable.”

Both were right, but not in the ways they intended. Indeed, the collapse of Kabul was not comparable. It was worse, incomparably so. And its implications for the future of U.S. global power are far more serious than the loss of Saigon.

On the surface, similarities abound. In both South Vietnam and Afghanistan, Washington spent 20 years and countless billions of dollars building up massive, conventional armies, convinced that they could hold off the enemy for a decent interval after the U.S. departure. But presidents Nguyen Van Thieu of South Vietnam and Ashraf Ghani of Afghanistan both proved to be incompetent leaders who never had a chance of retaining power without continued fulsome American backing.

Amid a massive North Vietnamese offensive in the spring of 1975, President Thieu panicked and ordered his army to abandon the northern half of the country, a decision that precipitated Saigon’s fall just six weeks later. As the Taliban swept across the countryside this summer, President Ghani retreated into a fog of denial, insisting his troops defend every remote, rural district, allowing the Taliban to springboard from seizing provincial capitals to capturing Kabul in just 10 days.

With the enemy at the gates, President Thieu filled his suitcases with clinking gold bars for his flight into exile, while President Ghani (according to Russian reports) snuck off to the airport in a cavalcade of cars loaded with cash. As enemy forces entered Saigon and Kabul, helicopters ferried American officials from the U.S. embassy to safety, even as surrounding city streets swarmed with panicked local citizens desperate to board departing flights.

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CNN and WaPo Write Devastating Articles Outlining General Mark Milley as Leader of Military Coup Against President Trump, by Sundance

In the good old days this sort of stunt would have got a general shit-canned. In the even good older days it would have got him lined up in front of a firing squad. From Sundance at theconservativetreehouse.com:

The headline stories today are large, and so is the background as these issues surface. Context becomes increasingly important as each aspect is reviewed.  As you look at the stories, remember this context (emphasized as a reminder):

♦ TEAM One – The Department of State is aligned with the CIA.  Their media PR firms are CNN, CNNi and the Washington Post. Their ideology is favorable to the United Nations.  Their internal corruption is generally driven by relationship with foreign actors.  References: Hillary Clinton, Clinton Global Initiative, John McCain, Qatar, Muslim Brotherhood, Samantha Powers, Susan Rice, Cass Sunstein, Brookings Institute, Lawfare, China-centric, Senate Foreign Relations Committee, Council on Foreign Relations.

TEAM Two – The White House is aligned with the Pentagon (DoD) and National Security Council (NSC).  Their media PR firms are domestic in nature. New York Times, Politico, etc.  Their internal corruption is generally driven by domestic influence.  References: Barack Obama, George Bush, Wall St, Big Banks, Multinational Corporations, Defense Contractors, FBI (state police), Judicial Branch, and community activists writ large.  [Presidential elections only affect Team Two (nationalism -v- globalism).  In the modern era Team One is independent.]

Today CNN, via Bob Woodward [Article Here] and The Washingon Post, via Robert Costa [Article Here] collaborate on a designed hit against one of the key corrupt actors on Team Two, Joint Chiefs of Staff General Mark Milley.  CTH previously said this was coming: “Look for Joint Chief’s Chairman Mark Milley to be the guy who gets canned to protect Joe Biden. Mark Milley knows this is likely.”

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Breaking From Cycles of Destruction by Leaping to a Multipolar Future, by Matthew Ehret

Maybe the US empire isn’t in the interest of anybody, including the US. From Matthew Ehret at strategic-culture.org:

The Multipolar Alliance has demonstrated a profound understanding of the oncoming collapse and has made many maneuvers to establish a new financial, security, economic architecture, Matt Ehret writes.

During the past weeks, the world saw Eurasian nations take great strides towards the inevitable creation of an alternative financial system capable of withstanding the effects of the onrushing blowout of the $1.5 quadrillion bubble that some still wish to call the “western banking system”.

Contrasted with those ideologues committed to preserving the unipolar hegemon propels in a bid towards hyperinflationary (and possibly thermonuclear) hell, the BRICS nations have announced three new members (UAE, Bangladesh and Uruguay) to the membership roster of the New Development Bank. Additionally Russian ambitions for a new Arctic development vision that entails a multi-generational grand design for the far east and northern-most regions of Eurasia has also created a climate of long term thinking that is in total synergy with China’s 130-nation strong Belt and Road Initiative.

The Roots of the Oncoming Collapse

While many a myopic economist treat the oncoming collapse of the western banking system as a non-event (or the unavoidable effects of a pandemic), the reality is that this blowout has been a long time coming. Events associated with the Coronavirus-induced economic shutdown may prove to be the pin prick that blows the bubble, COVID-19 cannot be said by any honest person to be the actual “cause”.

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Soros’ Dream: To Turn China Into a Neoliberal Grabitization Opportunity

Unless he really is a reptile and lives another few decades, Soros’ will probably never pick up the pieces in China. From Michael Hudson at counterpunch.org:

Photograph Source: Central European University – CC BY 2.0

In a Financial Times op-ed, “Investors in Xi’s China face a rude awakening” (August 30, 2021), George Soros writes that Xi’s “crackdown on private enterprise shows he does not understand the market economy. … Xi Jinping, China’s leader, has collided with economic reality. His crackdown on private enterprise has been a significant drag on the economy.”

Translated out of Orwellian Doublethink, the “crackdown on private enterprise” means cutting back on what the classical economists called rent-seeking and unearned income. As for its supposed “drag on the economy,” Mr. Soros means the economy’s polarization concentrating wealth and income in the hands of the richest One Percent.

Soros lays out his plan for how U.S. retaliation may punish China by withholding U.S. funding of its companies (as if China cannot create its own credit) until China capitulates and imposes the kind of deregulation and de-taxation that Russia did after 1991. He warns that China will suffer depression by saving its economy along socialist lines and resisting U.S.-style privatization and its associated debt deflation.

Mr. Soros does recognize that China’s “most vulnerable sector is real estate, particularly housing. China has enjoyed an extended property boom over the past two decades, but that is now coming to an end. Evergrande, the largest real estate company, is over-indebted and in danger of default. This could cause a crash.” By that, he means a reduction of housing prices. That’s just what is needed in order to deter land becoming a speculative vehicle. I and others have urged a policy of land taxation in order to collect the land’s rising site value, so that it will not be pledged to banks for mortgage credit to further inflate china’s housing prices.

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