Putin: Russia ready to cooperate with moderate rebels in Syria — if they can be found

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Today the official presidential website of Russia reports the statements Putin made following a working meeting with Defense Minister Sergei Shoigu, in which “the head of the defense department informed the President on the course of the operation of air and space forces of Russia in Syria”:

[…] Vladimir Putin: “We realize that conflicts of this kind must end in a political settlement. I discussed this matter just this morning with the Russian Foreign Minister. During my recent visit to Paris, the President of France, Mr Hollande, voiced an interesting idea that he thought is worth a try, namely, to have President Assad’s government troops join forces with the Free Syrian Army. True, we do not know yet where this army is and who heads it, but if we take the view that these people are part of the healthy opposition, if it were possible to have them join in the fight against terrorist organizations such as ISIS, Jabhat al-Nusra and others, this would help pave the way to a future political settlement in Syria. […]”

Fight for Freedom – US vs Donbass

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By Xavier Lerma

US foreign policy is choking the whole earth and at the same time has caused America to implode. They panic when they see the rise of Russia’s economy and almost limitless resources that give cheap gas to Europe and the world. The CIA pays off some and brainwash the weak to overthrow the government in Kiev then causing a civil war. They manage to call civilians “terrorists”, so it’s easier to murder their own people in SE Ukraine. This has forced the people of Donbass to fight like a pack of wolves backed into a corner.

It’s a mad upside down world where the US brainwashed its people to believe that Putin had invaded Ukraine while people from Donbass want Putin to intervene militarily to stop the US backed Kiev forces. They are begging Putin to stop the war. SE Ukraine begs Russia to help. Millions have fled to Russia from Ukraine including Kiev soldiers who were disillusioned with the war. Russia is a safe haven of peace. When Hitler invaded Poland the refugees that escaped did not go to Germany. People of Donbass do not flee to the US.

Many feel betrayed by Putin for saving Crimea and not Donbass. Putin asked Poroshenko for peace and organized the Minsk peace talks. Even though Putin sends food, water and medical supplies by truck convoys, many are still unhappy more is not done. Even Putin’s childhood friend, Venzin Vladimir Alexandrovich has changed his view about Putin.

In a video Alexandrovich said, “Now people are cursing him (in Gorlvoka, town near Donetsk)… a year ago we all would turn our TV’s every morning waiting to hear that Russia has started sending its troops. Now, people simply spit when hearing the word “Russia” because Russia has betrayed Donbass.” Venzin would laugh if he saw the media mantras on US TV stating that Putin invaded Ukraine with Russian troops. If Russian troops were in Ukraine he wouldn’t be upset with Putin and Donbass would be safe and sound like Crimea.

The Donetsk People’s Republic (DPR) had gone on the offensive last February and created a Debaltsevo Cauldron. Anna News reported 8,000 Kiev troops were surrounded and their destroyed equipment was put on display. According to ITAR-TASS , militia headquarters reported “Around five thousand servicemen with weapons and around 50 tanks, more than 200 combat armored vehicles… were blocked in the trap,”. The US forced Poroshenko to scream for a ceasefire while the US soldiers train his military. It was a great victory when the Debaltsevo pocket was closed.

Unfortunately, the recent Minsk ceasefire agreement that was agreed to by both sides of the Ukrainian civil war lasted about an hour. It comes as no surprise as the first one was broken as well. The puppet president who was placed there by Obama never had any intention for peace. Genocide is their goal and the people of SE Ukraine in Donbass know it. When the devil tells you he wants peace you better prepare for war.

I have no idea why they even try to bargain with this monster Poroshenko. He is backed by another monster, Obama from the US who is a puppet himself doing the bidding of Soros, Rothschild, Rockefeller and other elites in the West. America is where paleface speaks with fork tongue. How many treaties did the US break with the natives?

Alexander Dugin in his “Letter to the American People on Ukraine” writes, “The American political elite has stolen, perverted and counterfeited the American identity. And they make us hate you and they make you hate us… – the global oligarchy who rules the world using you and smashing us. Let us revolt. Let us resist. Together, Russians and Americans. We are the people. We are not their puppets.”

Donbass is not happy with President Putin but he does his best to secure stability in the world with economic success while the US creates wars and discord like pyromaniacs. Obama smiles and laughs to his worshippers while elusively avoiding any blame. After all, he’s trying his best. His best to oust Assad and fulfill his masters plan of conquest in the Middle East. “Assad must go!” and “What difference does it make!, Clinton shouted. Pure madness displayed for all to see that extended to Ukraine.

A former member of the Ukrainian parliament in Kiev, Oleg Tsarov, warned us all, “American instructors presented examples of successful use of social networks used to organize protests in Egypt, Tunisia and Libya. Recent conference took place Nov 14-15, 2013, in the heart of Kiev in the Embassy of the United States of America! Is it conceivable that the representatives of the US Embassy which organized the ‘Tech Camp’ conferences, misuse their diplomatic mission?”

Yes! The US certainly does misuse their diplomatic mission. That is why many in Kiev this year protest the US Embassy like mad dogs. Even Kiev officers are defecting. Almost every week angry mobs come by the hundreds and the thousands. They protest America standing in the rain mooing like cows with a sign, We are not cattle!. They thank the weasel Ambassador Geoffrey Pyatt for bringing war and poverty. He’s lucky they haven’t dragged him in the street like the US ambassador in Libya. On June 25, in this video, they made demonstrations with raw meat.

They said at the protest, “We, the youth of Ukraine… gather near the USA embassy in order to tell them: Americans, enough with interference  into internal affairs of Ukraine! Enough with killing our people! Enough with financing the war in Donbass! Enough with terrorizing our Motherland and all other Slavic states! This protest is called “Give your heart to United States”. Symbolic countries you see here are Ukraine, Syria, Iraq, Libya, where paid USA so-called revolutions took place. People believed this nation! And look, what they have done to them! They drowned them in blood, they destroyed the infrastructure!

Another protester said, “Two years ago, when I was watching videos from Syria I couldn’t imagine that the same could happen in my country. That people will be dying, that cities will be destroyed. But unfortunately, after the coup d’etat on Maidan our country burst into fire of the civil war.”

Donbass has had no choice but to fight. Oleg Tsarov wrote about another victory, “We won because God is with us and the truth, but we are not gloating. As a Ukrainian people we wish a speedy liberation from the occupying regime. After using Poroshenko, America occupied the Ukraine and tried to occupy us. Our common duty is to free Ukraine from Nazi power and give back to the people their country and to punish those responsible for inciting fratricidal war. We will win – no doubt about it.”

The spirit of this struggle has been captured in a video by News-Front called “Donbass Defenders – “My palm clenched into a fist”.  Great music, powerful, mixed with the truth. It is an expression of their defiant struggle sung by Polina Gagarina. “Oh sun of mine – break through the darkness…My open hand has turned into a fist. And if I have gunpowder – then give me a spark…Like this. Who will now follow the lonely trail? The strong and the brave stood firm in the field – and died…Few still remember,  of firm body and mind – few stand in our line… Oh Sun of mine, break through the darkness… My open hand now turned into a fist. If I have gunpowder – just give me a spark…. Like this. Freedom… – where are you now? Whose sunrise do you shine on? Answer me!!”

The song was not translated in the original so we found one video with the lyrics in English called “Open Hand Now a Fist” to Kiev,USA”. One day the world as one fist will defy the US. On that day the world will know freedom. The country that claimed to give freedom to the world will have its yoke over humanity broken by those nations it murdered. It has begun at Donbass and will make history.

“Open Hand Now a Fist” to Kiev,USA (English subtitles)

– See more at: http://english.pravda.ru/opinion/columnists/01-07-2015/131167-fight_fore_freedom_usa_donbass-0/#sthash.ZayEld6V.dpuf

Madame Merkel – Between Munich, Moscow, Washington and Minsk — Jet-setting for Peace or Propaganda?

Region:
In-depth Report:

 

Angela-MerkelMadame Merkel attended on 6 February the 6-7 February NATO security Conference in Munich. Then, not listening to what Mr. Lavrov had to say to the conference on 7 February, she jetted with ‘General’ (as in Napoleon) Hollande of France to Moscow to meet ‘urgently’ with Mr. Putin on 7 February to initiate new peace / truce talks on Ukraine. Keeping the results largely under wraps, not to divulge to her own people or the rest of Europe, she stopped briefly over in Germany where she finally talked to Sergei Lavrov, before jetting on to emperor Obama for reporting and consulting.

What does the master say? We don’t know yet – eagerly awaiting the mainstream media spin. It should be hitting us shortly. – Next stop Minsk. Merkel with Holland in tow, for talks with Putin and Poroshenko. What else is new? Poroshenko can’t budge without a nod from Washington – which he will not get, of course. Peace is not part of Obama’s and his henchmen’s game plan. He needs war, and he wants Ukraine.

Does this look like a serious attempt by Europe to reach peace in Ukraine or sheer propaganda? – Taking hapless Hollande along to Moscow and Minsk, makes it look graver, more serious, but is likely just another propaganda stunt, replaying the odd, old German- French tandem; of course, as a new lie campaign, eventually serving to vilify Vladimir Putin. If it all fails. And fail it will, since Washington has no intention to reach an agreement.

The Kremlin will not give in handing over Ukraine on a silver platter to the emperor and his European vassals, nor on any platter for that matter. And rightly so. Everybody knows that, except for the msm-enslaved populace; a vast majority. Unfortunately.

Almost certainly, Mr. Putin stressed again, what he said since the beginning of the conflict, that there are no Russian troops fighting in Ukraine, humanitarian aid is all that Russia delivers to the cruelly bombed and massacred people of Neorussia, the Donbass area. This was recently confirmed by Chief of Staff of Ukraine’s Armed Forces, General Viktor Muzhenkohttp://www.globalresearch.ca/ukrainian-government-no-russian-troops-are-fighting-against-us-sanctions-against-russia-based-on-falshoods/5428523.

Of course, no msm has picked up this little detail. How could they? It would throw out all justification for western sanctions – and it would lay bare the western, Washington-driven lies about Russian military intervention in Ukraine. People may start wondering, who if not Russia, is responsible for the bloody civil war in Ukraine, that has already left more than 5,400 people dead, hundreds of thousands without shelter and heating in the midst of winter – and millions of refugees? – And for downing the Malaysian airliner MH17? – Could we have been hoodwinked by the Empire of Chaos and its European vassals?

Mr. Putin may also have laid out to the odd couple, Merkel-Hollande, what he did since the beginning of the conflict as a condition of peace, or at least a truce – a relative large autonomy for eastern Ukraine, with Russian as an official language – and NO NATO base in Ukraine.

That sounds very reasonable, given the fact that the war was entirely instigated and the Nazi putsch government (sic) put in place by Washington. Madame Nuland, Kerry’s sidekick, testified to this in a telephone conversation on January 28, 2014, about three weeks before the coup, with US ambassador Geoffrey Pyatt. The conversation was published on YouTube. She knew whom she wanted to replace the democratically elected Victor Yanukovitsch with, namely with “Yats”, as she calls him endearingly, the ultra-right wing, fascist Arseniy Yatsenuik, today’s PM of the Kiev junta of thugs and murderers. She later bragged about it at the Washington Press Club.

Again, the msm-lie and deceit machine is as of this day silent about it, lest Mr. Putin could no longer be demonized and his country ‘sanctioned’ – sanctions, which badly backfire especially on Europe – who has built up close and friendly business and trade relationships with Russia after the collapse of the Soviet Union. This was a logical step, not only from a geographic point of view; but also seen from an economic development ‘growth’ perspective.

Now – is Ms. Merkel seriously brokering for peace, because the German economy and the Euro may be at stake if Germany is shut out of Russia and the rest of the Eastern markets – all of Central Asia and China?

Keep in mind, there is already the Eurasian Customs Union, to become the Eurasian Economic Union (EEU) as of 2015, with the member states including Russia, Belarus, Kazakhstan, Armenia and Kyrgyzstan. In addition, there is the overlapping Shanghai Cooperation Organization (SCO) – China, Kazakhstan, Russia, Tajikistan, Uzbekistan, with potentially new members of Afghanistan, Iran, Mongolia, and Pakistan.

Turkey and India are also SCO contenders, but with India betraying the BRICS and seemingly rapidly defecting into the lush neoliberal Obama camp, and Turkey being torn apart, on the one hand as Europe’s key NATO base, and on the other, disgusted by Europe and increasingly leaning towards Russia and China – their SCO membership remains in suspense for now.

The SCO, created in 2001, is a politico-economic and military association. Together the EEC and the SCO account for about 25% of the world population and close to 30% of the world’s economic output. The eastern alliance under Russian-Chinese leadership is well on course of establishing its own monetary system, detached from the fraudulent dollar scheme.

Then there are the remaining BRICS, plus Argentina, Venezuela and possibly others that would gladly be migrating out of Washington’s oppressive fangs into a friendly economic environment, where national sovereignty still counts and is respected.

Given all these facts, is it too farfetched to assume that Madame Merkel may have seen the light after all, racing to Obama, telling him the obvious? That without a change of Washington’s policy towards Russia not only the European economy may collapse, but that the US economy may not survive either? – That with WWIII or even a new Cold War over Ukraine, the world as we know it may eclipse? – That he, Mr. Obama, the emperor of the exceptional nation, should put his bets on other horses than conflict and eternal war, and instead start thinking of peace and cooperation?

It would be fair to assume that Washington knows all that. There has been a pattern for the last 35 years, the hegemonic implementation of a neoliberal dogma; controlling energy, food, money and people under a one world order, be it as it may, through financial and economic subjugation as with Greece and other southern European states, or with endless outright military aggression directly or by proxy (as in bought (mis)leaders and mercenaries), à la Afghanistan, Iraq, Indonesia, Libya, Pakistan, Syria, Sudan, Thailand, Yemen, and-so-on – and Ukraine. They, the master and his cronies, will not let go, no matter what concessions Putin would be willing to make. Pursuit of the PNAC’s (Plan for a New American Century) objective, Full Spectrum Dominance, knows no mercy. Obama himself is a mere marionette of corporate empire, led by the military industrial complex and the Zionist-Anglo-Saxon banking system.

Madame Merkel, regardless of the tenor and contents of your discussion in Washington, it is up to you, whether you want to lead Europe out of her conundrum – of her wavering between prosperity and submission – between war and peace.

Peter Koenig is an economist and geopolitical analyst. He is also a former World Bank staff and worked extensively around the world in the fields of environment and water resources. He writes regularly for Global Research, ICH, RT, Sputnik News, the Voice of Russia / Ria Novosti, TeleSur, The Vineyard of The Saker Blog, and other internet sites. He is the author of Implosion – An Economic Thriller about War, Environmental Destruction and Corporate Greed – fiction based on facts and on 30 years of World Bank experience around the globe.

The War in Ukraine: Editorial in The New York Times Suggests US Is Looking for a Face-Saving Way Out

The New York Times recommends a diplomatic settlement of the Ukrainian conflict based on the Russian proposal of a year ago for Ukraine’s federalisation.

In-depth Report:

putin-nato-russia-ukraine_si-400x224The editorial in the New York Times we attach below is the first belated acknowledgement that the only way of saving Ukraine and ending the war is by conceding federalisation to Ukraine’s eastern regions.

We do not know for sure  whether this editorial reflects official US thinking. However, the probability is that it does.

Firstly, it is not unheard of for the US government to float ideas in this way through editorials in the New York Times. The New York Times is regularly chosen to do this because of its reputation and because it is widely read abroad.  The British government used to use the Times of London in the same way.

We have previously reported the concerns of some officials within the US government at the way in which the Ukrainian crisis is leading US relations with Russia into an impasse.

It is at least possible that with the war going disastrously wrong for Kiev and with the US administration looking increasingly short of options, the US administration is now trying to find a face-saving way out by finally embracing the federalisation solution that the Russians proposed last spring.  If so then this editorial, which will surely be read in Moscow, is intended as as an olive-branch.

The following words give the clear impression that a concrete offer has been made to Moscow through diplomatic back-channels. The carefully chosen words clearly convey the sense that the authority of the US government lies behind them:

“Russian officials have suggested that Moscow has no interest in annexing eastern Ukraine, the way it grabbed Crimea, but rather seeks a Ukrainian federation in which the pro-Russian provinces would have relative autonomy, along with assurances that Ukraine will not move to join NATO.

There is definitely potential for negotiations there……..

Tempting as it is to focus on punishing Mr. Putin, the greater objective must be to end the fighting so that Ukraine can finally undertake the arduous task of reforming and reviving its economy. Toward that end, the West must make clear to Mr. Putin that if a federation is his goal, the United States and its allies will actively use their good offices with Kiev to seek a workable arrangement.”

Poroshenko has just issued another statement ruling out federalisation.  This also suggests we are looking at an actual behind-the-scenes offer.  We have already explained why for Maidan talk of federalisation is anathema.  Poroshenko’s words suggest he knows of the US initiative and is trying to scotch it and to make his opposition to the idea clear before Secretary Kerry flies to Kiev as he is due shortly to do.

Moscow and the rebels are however unlikely to take up the offer.

The Russians pushed strongly for federalisation of Ukraine’s eastern regions following the February coup.  On 17th April 2014 a Statement was agreed by the US and Russian foreign ministers, John Kerry and Sergei Lavrov, in Geneva, and was signed by the EU and the Ukrainian government, that called for constitutional negotiations between the various Ukrainian parties. These were obviously intended to lead to a constitutional settlement that would have led to federalisation. Many people in the Donbass at the time of the independence referendum of 11th May 2014 appeared to support the idea.

What was offered (and declined) in Spring 2014 may however no longer be on the table in Winter 2015.

Since the federalisation idea was floated last Spring there has been a murderous war in the Donbass causing massive devastation and loss of life. Russia has been subjected to two rounds of sectoral sanctions. There has been a relentless propaganda campaign against Russia, the rebels and Putin himself. It is difficult to believe that all of this has not caused views to harden since the spring.

Promises of constitutional negotiations like the ones made in Geneva on 17th April 2014 and in Minsk on 5th September 2014 have come and gone. No negotiations have however taken place. Given that Kiev is dead against them, after all that has happened it is very doubrtful the rebels or the Russians now believe they ever will. Nor are the Russians likely to be in any sort of mood to believe in US assurances that “if federation is the goal, the United States and its allies will actively use their good offices with Kiev to seek a workable arrangement”.

What made sense in the Spring, when it was proposed to prevent a war, may anyway no longer make sense in the Winter, after the war has already happened. After so much violence it is barely conceivable that the rebels or the people of the Donbass who support them would now agree to be part of a federation that left them within Ukraine, especially now when they are on the brink of victory.

If this is correct, then it looks like the US and its allies have missed the bus.


The text of the editorial that appeared in The New York Times on February 2nd, 2015:

The fighting in eastern Ukraine has flared up again, putting an end to any myth about the cease-fire that was supposed to be in force since September.

Though the Russian economy is staggering under the twinned onslaught of low oil prices and sanctions — or, conceivably, as a result of that onslaught — President Vladimir Putin has sharply cranked up his direct support for the rebels in the provinces of Donetsk and Luhansk, while continuing to baldly deny it and to blame all the violence on the United States.

Meanwhile, Ukraine is broke, and without the military means to move against the Russian-backed rebels. Most of the victims are civilians who struggle with hunger and dislocation in the rubble of the combat zones and die in the constant exchanges of shells and rockets.

The eruption of fighting in recent weeks, which was not supposed to happen until spring, has given new force to pleas to the Obama administration to give Ukraine the means to resist Mr. Putin — in money and in arms.

Certainly the United States and Europe should increase their aid to Ukraine and explore ways to expand existing sanctions against Russia. NATO’s commander, Gen. Philip Breedlove, is said to support providing weapons and equipment to Kiev. And Secretary of State John Kerry is said to be open to discussing the idea. But lethal assistance could open a dangerous new chapter in the struggle — a chapter Mr. Putin would quite possibly welcome, as it would “confirm” his propaganda claims of Western aggression.

So far, President Obama has cautiously pledged to help Ukraine in every way “short of military confrontation.” Yet with sanctions and diplomacy making no headway against Russian aggression, it is imperative that the United States and its allies take a new look at what would bring Russia to a serious negotiation.

The first question is, to negotiate what? Along with denying the direct involvement of his troops in eastern Ukraine, Mr. Putin has not made clear what he is trying to achieve. Russian officials have suggested that Moscow has no interest in annexing eastern Ukraine, the way it grabbed Crimea, but rather seeks a Ukrainian federation in which the pro-Russian provinces would have relative autonomy, along with assurances that Ukraine will not move to join NATO.

There is definitely potential for negotiations there. Yet the latest rebel attacks have focused on Mariupol, an important port on the Black Sea, and on expanding the rebels’ control to areas that would give their self-proclaimed “republics” greater military and economic cohesion. And that speaks to long-term rebel occupation.

Tempting as it is to focus on punishing Mr. Putin, the greater objective must be to end the fighting so that Ukraine can finally undertake the arduous task of reforming and reviving its economy. Toward that end, the West must make clear to Mr. Putin that if a federation is his goal, the United States and its allies will actively use their good offices with Kiev to seek a workable arrangement.

But if the evidence continues to accumulate that Mr. Putin and the rebels are carving out a permanent rebel-held enclave in eastern Ukraine, à la Transdniestria, Abkhazia or South Ossetia, he must know that the United States and Europe will be compelled to increase the cost.

Grandmaster Putin’s Trap: Russia is Selling Oil and Gas in Exchange for Physical Gold

 

putin041Accusations of the West towards Putin are traditionally based on the fact that he worked in the KGB. And therefore he is a cruel and immoral person. Putin is blamed for everything. But nobody ever accused Putin of the lack of intelligence.

Any accusations against this man only emphasize his ability for quick analytical thinking and making clear and balanced political and economic decisions.

Often Western media compares this ability with the ability of a grandmaster, conducting a public chess simul. Recent developments in US economy and the West in general allow us to conclude that in this part of the assessment of Putin’s personality Western media are absolutely right.

Despite numerous success reports in the style of Fox News and CNN, today, Western economy, led by the United States is in Putin’s trap, the way out of which no one in the West can see or find.And the more the West is trying to escape from this trap, the more stuck it becomes.

What is the truly tragic predicament of the West and the United States, in which they find themselves? And why all the Western media and leading Western economists are silent about this, as a well guarded military secret? Let’s try to understand the essence of current economic events, in the context of the economy, setting aside the factors of morality, ethics and geopolitics.

Development of crude oil prices.

Development of crude oil prices.

After realizing its failure in Ukraine, the West, led by the US set out to destroy Russian economy by lowering oil prices, and accordingly gas prices as the main budget sources of export revenue in Russia and the main sources of replenishment of Russian gold reserves. It should be noted that the main failure of the West in Ukraine is not military or political. But in the actual refusal of Putin to fund the Western project of Ukraine at the expense of the budget of Russian Federation. What makes this Western project not viable in the near and inevitable future.

Last time under president Reagan, such actions of the West’s lowering of oil prices led to ‘success’ and the collapse of USSR. But history does not repeat itself all the time. This time things are different for the West. Putin’s response to the West resembles both chess and judo, when the strength used by the enemy is used against him, but with minimal costs to the strength and resources of the defender. Putin’s real policies are not public. Therefore, Putin’s policy largely has always focused not so much on effect, but on efficiency.

Very few people understand what Putin is doing at the momentAnd almost no one understands what he will do in the future.

No matter how strange it may seem, but right now, Putin is selling Russian oil and gas only for physical gold.

Putin is not shouting about it all over the world. And of course, he still accepts US dollars as an intermediate means of payment. But he immediately exchanges all these dollars obtained from the sale of oil and gas for physical gold!

To understand this, it is enough to look at the dynamics of growth of gold reserves of Russia and to compare this data with foreign exchange earnings of the Russia coming from the sale of oil and gas over the same period.

goldMoreover, in the third quarter the purchases by Russia of physical gold are at all-time high record levels. In the third quarter of this year, Russia had purchased an incredible amount of gold in the amount of 55 tons. It’s more than all the central banks of all countries of the world combined (according to official data)!

In total, the central banks of all countries of the world have purchased 93 tons of the precious metal in the third quarter of 2014. It was the 15th consecutive quarter of net purchases of gold by Central banks. Of the 93 tonnes of gold purchases by central banks around the world during this period, the staggering volume of purchases – of 55 tons – belongs to Russia.

Not so long ago, British scientists have successfully come to the same conclusion, as was published in the Conclusion of the U.S. Geological survey a few years ago. Namely: Europe will not be able to survive without energy supply from Russia. Translated from English to any other language in the world it means: “The world will not be able to survive if oil and gas from Russia is subtracted from the global balance of energy supply”.

Thus, the Western world, built on the hegemony of the petrodollar, is in a catastrophic situation. In which it cannot survive without oil and gas supplies from Russia. And Russia is now ready to sell its oil and gas to the West only in exchange for physical gold! The twist of Putin’s game is that the mechanism for the sale of Russian energy to the West only for gold now works regardless of whether the West agrees to pay for Russian oil and gas with its artificially cheap gold, or not.

Because Russia, having a regular flow of dollars from the sale of oil and gas, in any case, will be able to convert them to gold with current gold prices, depressed by all means by the West. That is,at the price of gold, which had been artificially and meticulously lowered by the Fed and ESF many times, against artificially inflated purchasing power of the dollar through market manipulation.

Interesting fact: the suppression of gold prices by the special department of US Government – ESF (Exchange Stabilization Fund) – with the aim of stabilizing the dollar has been made into a law in the United States.

In the financial world it is accepted as a given that gold is an antidollar.

  • In 1971, US President Richard Nixon closed the ‘gold window’, ending the free exchange of dollars for gold, guaranteed by the US in 1944 at Bretton Woods.
  • In 2014, Russian President Vladimir Putin has reopened the ‘gold window’, without asking Washington’s permission.

Right now the West spends much of its efforts and resources to suppress the prices of gold and oil. Thereby, on the one hand to distort the existing economic reality in favor of the US dollar and on the other hand, to destroy the Russian economy, refusing to play the role of obedient vassal of the West.

Today assets such as gold and oil look proportionally weakened and excessively undervalued against the US dollar. It is a consequence of the enormous economic effort on the part of the West.

And now Putin sells Russian energy resources in exchange for these US dollars, artificially propped by the efforts of the West. With which he immediately buys gold, artificially devalued against the U.S. dollar by the efforts of the West itself!

sourcesThere is another interesting element in Putin’s game. It’s Russian uranium. Every sixth light bulb in the USA depends on its supply. Which Russia sells to the US too, for dollars.

Thus, in exchange for Russian oil, gas and uranium, the West pays Russia with dollars, purchasing power of which is artificially inflated against oil and gold by the efforts of the West. But Putin uses these dollars only to withdraw physical gold from the West in exchange, for the price denominated in US dollars, artificially lowered by the same West.

This truly brilliant economic combination by Putin puts the West led by the United States in a position of a snake, aggressively and diligently devouring its own tail.

The idea of this economic golden trap for the West, probably originated not from Putin himself. Most likely it was the idea of Putin’s Advisor for Economic Affairs – doctor Sergey Glazyev. Otherwise why seemingly not involved in business bureaucrat Glazyev, along with many Russian businessmen, was personally included by Washington on the sanction list?  The idea of an economist, doctor Glazyev was brilliantly executed by Putin, with full endorsement from his Chinese colleague – Xi Jinping.

Especially interesting in this context looks the November statement of the first Deputy Chairman of Central Bank of Russia Ksenia Yudaeva, which stressed that the Central Bank of Russia can use the gold from its reserves to pay for imports, if needed. It is obvious that in terms of sanctions by the Western world, this statement is addressed to the BRICS countries, and first of all China. For China, Russia’s willingness to pay for goods with Western gold is very convenient. And here’s why:

China recently announced that it will cease to increase its gold and currency reserves denominated in US dollars. Considering the growing trade deficit between the US and China (the current difference is five times in favor of China), then this statement translated from the financial language reads: “China stops selling their goods for dollars”. The world’s media chose not to notice this grandest in the recent monetary history event . The issue is not that China literally refuses to sell its goods for US dollars. China, of course, will continue to accept US dollars as an intermediate means of payment for its goods. But, having taken dollars, China will immediately get rid of them and replace with something else in the structure of its gold and currency reserves. Otherwise the statement made by the monetary authorities of China loses its meaning: “We are stopping the increase of our gold and currency reserves, denominated in US dollars.” That is, China will no longer buy United States Treasury bonds for dollars earned from trade with any countries, as they did this before.

Thus, China will replace all the dollars that it will receive for its goods not only from the US but from all over the world with something else not to increase their gold currency reserves, denominated in US dollars. And here is an interesting question: what will China replace all the trade dollars with? What currency or an asset? Analysis of the current monetary policy of China shows that most likely the dollars coming from trade, or a substantial chunk of them, China will quietly replace and de facto is already replacing with Gold.

Are we witnessing the end of dollar era?

Are we witnessing the end of dollar era?

In this aspect, the solitaire of Russian-Chinese relations is extremely successful for Moscow and Beijing.Russia buys goods from China directly for gold at its current price. While China buys Russian energy resources for gold at its current price. At this Russian-Chinese festival of life there is a place for everything: Chinese goods, Russian energy resources, and gold – as a means of mutual payment. Only US dollar has no place at this festival of life. And this is not surprising. Because the US dollar is not a Chinese product, nor a Russian energy resource. It is only an intermediate financial instrument of settlement – and an unnecessary intermediary. And it is customary to exclude unnecessary intermediaries from the interaction of two independent business partners.

It should be noted separately that the global market for physical gold is extremely small relative to the world market for physical oil supplies. And especially the world market for physical gold is microscopic compared to the entirety of world markets for physical delivery of oil, gas, uranium and goods.

Emphasis on the phrase “physical gold” is made because in exchange for its physical, not ‘paper’ energy resources, Russia is now withdrawing gold from the West, but only in its physical, not paper form. So does China, by acquiring from the West the artificially devalued physical gold as a payment for physical delivery of real products to the West.

The West’s hopes that Russia and China will accept as payment for their energy resources and goods “shitcoin” or so-called “paper gold” of various kinds also did not materialize. Russia and China are only interested in gold and only physical metal as a final means of payment.

For reference: the turnover of the market of paper gold, only of gold futures, is estimated at $360 billion per month. But physical delivery of gold is only for $280 million a month. Which makes the ratio of trade of paper gold versus physical gold: 1000 to 1.

Using the mechanism of active withdrawal from the market of one artificially lowered by the West financial asset (gold) in exchange for another artificially inflated by the West financial asset (USD),Putin has thereby started the countdown to the end of the world hegemony of petrodollar. Thus, Putin has put the West in a deadlock of the absence of any positive economic prospects. The West can spend as much of its efforts and resources to artificially increase the purchasing power of the dollar, lower oil prices and artificially lower the purchasing power of gold. The problem of the West is that the stocks of physical gold in possession of the West are not unlimited. Therefore, the more the West devalues oil and gold against the US dollar, the faster it loses devaluing Gold from its not infinite reserves. In this brilliantly played by Putin economic combination the physical gold is rapidly flowing to Russia, China, Brazil, Kazakhstan and India, the BRICS countries, from the reserves of the West. At the current rate of reduction of reserves of physical gold, the West simply does not have the time to do anything against Putin’s Russia until the collapse of the entire Western petrodollar world. In chess the situation in which Putin has put the West, led by the US, is called “time trouble”.

The Western world has never faced such economic events and phenomena that are happening right now. USSR rapidly sold gold during the fall of oil prices. Russia rapidly buys gold during the fall in oil prices. Thus, Russia poses a real threat to the American model of petrodollar world domination.

The main principle of world petrodollar model is allowing Western countries led by the United States to live at the expense of the labor and resources of other countries and peoples based on the role of the US currency, dominant in the global monetary system (GMS) . The role of the US dollar in the GMS is that it is the ultimate means of payment. This means that the national currency of the United States in the structure of the GMS is the ultimate asset accumulator, to exchange which to any other asset does not make sense. What the BRICS countries, led by Russia and China, are doing now is actually changing the role and status of the US dollar in the global monetary system. From the ultimate means of payment and asset accumulation, the national currency of the USA, by the joint actions of Moscow and Beijing is turned into only an intermediate means of payment. Intended only to exchange this interim payment for another and the ulimate financial asset – gold. Thus, the US dollar actually loses its role as the ultimate means of payment and asset accumulation, yielding both of those roles to another recognized, denationalized and depoliticized monetary asset – gold.

Traditionally, the West has used two methods to eliminate the threat to the hegemony of petrodollar model in the world and the consequent excessive privileges for the West.

Map of Coloured revolutions

One of these methods – colored revolutions. The second method, which is usually applied by the West, if the first fails – military aggression and bombing.

But in Russia’s case both of these methods are either impossible or unacceptable for the West.

Because, firstly, the population of Russia, unlike people in many other countries, does not wish to exchange their freedom and the future of their children for Western sausage. This is evident from the record ratings of Putin, regularly published by the leading Western rating agencies. Personal friendship of Washington protégé Navalny with Senator McCain played for him and Washington a very negative role. Having learned this fact from the media, 98% of the Russian population now perceive Navalny only as a vassal of Washington and a traitor of Russia’s national interests. Therefore Western professionals, who have not yet lost their mind, cannot dream about any colour revolution in Russia.

As for the second traditional Western way of direct military aggression, Russia is certainly not Yugoslavia, not Iraq or Libya. In any non-nuclear military operation against Russia, on the territory of Russia, the West led by the US is doomed to defeat. And the generals in the Pentagon exercising real leadership of NATO forces are aware of this. Similarly hopeless is a nuclear war against Russia, including the concept of so-called “preventive disarming nuclear strike”. NATO is simply not technically able to strike a blow that would completely disarm the nuclear potential of Russia in all its many manifestations. A massive nuclear retaliatory strike on the enemy or a pool of enemies would be inevitable. And its total capacity will be enough for survivors to envy the dead. That is, an exchange of nuclear strikes with a country like Russia is not a solution to the looming problem of the collapse of a petrodollar world. It is in the best case, a final chord and the last point in the history of its existence. In the worst case – a nuclear winter and the demise of all life on the planet, except for the bacteria mutated from radiation.

The Western economic establishment can see and understand the essence of the situation.Leading Western economists are certainly aware of the severity of the predicament and hopelessness of the situation the Western world finds itself in, in Putin’s economic gold trap. After all, since the Bretton Woods agreements, we all know the Golden rule: “Who has more gold sets the rules.” But everyone in the West is silent about it. Silent because no one knows now how to get out of this situation.

If you explain to the Western public all the details of the looming economic disaster, the public will ask the supporters of a petrodollar world the most terrible questions, which will sound like this:

How long will the West be able to buy oil and gas from Russia in exchange for physical gold?
And what will happen to the US petrodollar after the West runs out of physical gold to pay for Russian oil, gas and uranium, as well as to pay for Chinese goods?

No one in the West today can answer these seemingly simple questions.

And this is called “Checkmate”, ladies and gentlemen. The game is over.

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Source in Russian: Investcafe

Translated by ORIENTAL REVIEW

Russian president Vladimir Putin believes that the meaning of life is love.

 

Russian President Vladimir Putin

Russian President Vladimir Putin

MOSCOW, November 7 (RIA Novosti) – Russian president Vladimir Putin believes that the meaning of life is love.

“The meaning of our whole life and existence is love. It is love to the family, to the children, to the motherland. This phenomenon is complicated, it lies at heart of any of our behaviors,” Putin said during a congressional speech at the Russian Geographical Society.

Putin, who chairs the board of trustees at the Russian Geographical Society, expressed hope that its activity would help strengthen love to the motherland.

“It is exactly the top priority which all of us should go after, and I am absolutely sure that we will succeed,” he added.

Russian President  Vlad Putin is the coolest president in the world.

Russian President Vlad Putin is the smartest and coolest president in the world ever.

 

MOSCOW, November 5 (RIA Novosti)Russian President Vladimir Putin was named the world’s most powerful person by Forbes for the second year running, while US President Barack Obama took second place.

“For the second year running, our votes went with the Russian president as the world’s most powerful person, followed by U.S. President Barack Obama and Chinese leader Xi Jinping,” the article accompanying the list published Wednesday said.

The annual ranking is based on a voting by a panel of journal’s editors, who consider parameters like the person’s scope and use of power, the number of people impacted by the person in question and financial resources.

Forbes argues that the ranking singles out people, who “wield the kind of power that shapes and bends the works, and moves people, markets, armies and minds.”

In 2012, Putin was in third place on the list, while Obama took first place that year. The Russian leader was also been named Person of the Year by Time magazine in 2007, and was named The Times International Person of the Year in 2013.

Putin’s Valdai speech reflects Russia’s ‘strategic clarity, coherent policy’

Russian President Vladimir Putin

Russian President Vladimir Putin speaks at the wrap-up session of the 11th Meeting of the Valdai Discussion Club in Sochi on 24 October 2013. (RIA Novosti / Mikhail Voskresenskiy)

 

RT Question More

Putin’s speech at the Valdai Club reflects Russia’s overall strategic clarity of thought and a coherent long-term policy of resistance to the American monopolar unilateralism, foreign affairs analyst Srdja Trifkovic told RT.

RT: Apart from the very strong rhetoric, Putin said that Russia does not really see a strong menace on the part of the US, do you think Washington might stop seeing Moscow as a threat?

Srdja Trifkovic: No, I think US policy is guided by the geopolitical intentions, strategic design to surround and squeeze Russia at every point and if possible in the fullness of time to engineer regime change in Moscow. So the US policy and Western policy in general which is really the result of what US dictates to the Europeans, are not a result of a general perception of a Russian threat, rather they are guided by a long term geopolitical game which hasn’t changed since the Cold War.

RT: Why do you think it has not changed towards Russia?

ST: Because in essence the Washingtonian policy makers do not see any difference in terms of geopolitical enemy whether it is the USSR or whether it is Russia. And effectively they really look upon Russia as the ‘other’ not only in political but also in cultural and emotional terms. And that is why you have such a strong, strident anti-Russian rhetoric at all levels of the Western establishment, whether it is politics or media.

RT: Do you think if the Western leadership acted differently towards Russia, then we would see a different stance from Putin?

ST: Oh, absolutely, because all along Russia has been responding to different signals from the West in an appropriate manner. When the rhetoric from the reset was all the rage, then we had a very conciliatory action from the Russians.

RIA Novosti / Ilya Pitalev

RIA Novosti / Ilya Pitalev

I think that even now, Russian response to the sanctions hasn’t been strong enough. In fact it should be strong as to prompt the unions, the employers and the shareholders of the Western companies to lobby on their own governments to change policies towards Russia because it is beginning to hurt. But I think that Putin has very correctly diagnosed the nature of the international system as increasingly anarchic, and the one in which the US is trying to impose rules. But they are not real rules because they are applied on an entirely ad hoc basis from one situation to the other. Kosovo can be independent but Crimea cannot re-join Russia and so on.

So I think it is a very important speech because it reflects the clarity on the Russian side. So far we have seen different circles surrounding President Putin advising different things. And some of the captains of the Russian industry have been advocating more conciliatory line and then you have people like Rogozin or Shoigu who are advocating a more firm line and maybe foreign minister Lavrov somewhere in between. And now I think we have a very welcome development. We have a strategic clarity of thought which will result in a coherent policy and a long term a policy of resistance to American monopolar unilateralism.