Friday, August 10, 2018

Reuters — US Curbs On Russian Banks Would Be Act Of Economic War

Let that sink in. That is throwing down the gauntlet. It's going there.

Recall that the US entered WWII as a result of the US blockade of Japan, which Japan interpreted as an act of war and responded by attacking Pearl Harbor.
In a sign of how seriously Russia is taking the threat, President Vladimir Putin discussed what the Kremlin called “possible new unfriendly steps by Washington” with his Security Council on Friday.
What is especially dangerous is that just about the only Americans that understand this are those that want kinetic war with Russia to "finish the job once and for all."

To deal effectively with rising China, the US must either make Russia an ally or defeat Russia first. The former is Kissinger's solution, which has almost no chance of succeeding, and the later is insanity — psychopathy and sociopathy.

This is headed in a very bad direction. It is looking more and more like a Thucydides trap is springing.

US Curbs On Russian Banks Would Be Act Of Economic War
Andrew Osborn, Andrey Ostroukh

See also
This means that Russia’s whole military and intelligence command has been mobilized to discuss the latest American sanctions....
Go figure.  Jafe Arnold draws the conclusion.
Putin’s convening of the Security Council to discuss Washington’s new sanctions suggests that Moscow is calculating a response which, given the council meeting’s military-intelligence make-up, might include measures not restricted to the economic sphere....
Fort Russ
Will Russia HIT BACK at U.S. Sanctions? Putin Convenes Security Council
Jafe Arnold

See also
In sum, while a China-led global economy will remain open to trade, it will be less respectful of US intellectual property, less receptive to US foreign investment, and less accommodating of US exporters and multinationals seeking a level playing field. This is the opposite of what the Trump administration says it wants. But it is the system that the administration’s own policies are likely to beget.
In further sum, globalization under China would be more socialistic than capitalistic.

Project Syndicate
Globalization with Chinese Characteristics
Barry Eichengreen | Professor of Economics at the University of California, Berkeley, and formerly a senior policy adviser at the International Monetary Fund


Konrad said...

“Recall that the US entered WWII as a result of the US blockade of Japan, which Japan interpreted as an act of war and responded by attacking Pearl Harbor.”

Yes. Because of increasing U.S. belligerence, Japan (an island nation) began searching for alternative sources of oil, tin, rubber, and other imports.

Japan at that time received over 80% of its oil from the USA.

Japan looked to Brunei for oil, and Malaya for rubber and tin. If Japan could gain control of the region’s rubber and tin production, it would be a blow to the West, which imported such materials from the East.

In the autumn of 1940, Japan requested 3.15 million barrels of oil from Indonesia (then called the Dutch East Indies), but received a counteroffer of only 1.35 million. By June 1941, Japan invaded parts of Southeast Asia, including Vietnam and Indonesia. On 26 July 1941 the USA responded by seizing all Japanese assets in the United States, and by embargoing Japan. The UK and the Netherlands also embargoed Japan. The combined embargoes deprived Japan of three-fourths of its overseas trade and 88 percent of its imported oil.

The USA totally provoked Japan into attacking Pearl Harbor, while claiming that the attack was “totally unprovoked.”

War has always been part of the American character. Just yesterday the American-supplied Saudis attacked a school bus in Yemen, murdering 29 children and wounding at least 30 others, all under age 15.

TRIVIA: After the U.S. government blew up part of the Pentagon on 9-11, the government claimed that a “jetliner” hit it. Wikipedia has a video of this false flag attack. You can see the explosion at 1:24 in the video. Of course there is no jetliner. Either the government fired a missile at the Pentagon, or else the explosion was caused by pre-planted charges, as occurred with the World Trade Center.

The Reuters article says that there is, “Pressure on Trump to show he is tough on Russia ahead of mid-term elections.”

Yes indeed. Bankers, oligarchs, and their puppet politicians are driving us into ever-worsening poverty and debt slavery, but voters only care about being “rough on Russia.” Right?

Q. Why can’t we have universal Medicare?
A. Russia! Russia! Russia!

Q. Why are more and more Americans homeless?
A. Russia! Russia! Russia!

Q. Why are there---
A. Russia! Russia! Russia!

Q. Why---
A. Russia! Russia! Russia!

Konrad said...

“The fate of the U.S. bill that would tighten sanctions much further is not certain. The full U.S. Congress will not be back in Washington until September..." ~ Reuters

Yes. The U.S. House has been on vacation since 30 July, and politicians won’t come back until 4 September. This is understandable, since it is hard work voting on bills written by AIPAC, bankers, and military contractors. That’s why each Congress member collects $174,000 per year, plus all they can steal. The majority and minority leaders of both the Senate and the House collect $193,400 per year. The House Speaker collects $223,500 a year. Plus lavish percs and benefits.

Voting yeah or nay is hard work.

Tom Hickey said...

Voting yeah or nay is hard work.

Whatever hard work there is, the staffs do it — unless one considers constant fundraising and wooing donors to be hardwork.

Anyway, in the party system the leadership determines the voting, and the difference in the votes is mostly based on behind the scenes strategizing how the votes will fly with voters in the coming election in swing districts.

Calling this "democracy" is ludicrous.

Matt Franko said...

“This means that Russia’s whole military and intelligence command has been mobilized to discuss the latest American sanctions....“

Boy too bad they all aren’t POS USD zombies over there or sanctions would have zero effect...

Tom Hickey said...

Russia cut back its holdings of US Treasuries to 15 B from 100 B. Shifting reserves to gold instead.

Matt Franko said...

Oh boy gold now there’s an upgrade....

Tom Hickey said...

Considering that Russia is buying its own extraction output and thereby injecting roubles into the economy without affecting the fiscal balance, it's an improvement over holding USD.