Amazon, “Economic Terrorism” and the Destruction of Competition and Livelihoods

By Colin Todhunter

Source: Off-Guardian

Global corporations are colonising India’s retail space through e-commerce and destroying small-scale physical retail and millions of livelihoods.

Walmart entered into India in 2016 with a US$3.3 billion take-over of the online retail start-up Jet.com. This was followed in 2018 with a US$16 billion take-over of India’s largest online retail platform, Flipkart. Today, Walmart and Amazon control almost two thirds of India’s digital retail sector.

Amazon and Walmart have a record of using predatory pricing, deep discounts and other unfair business practices to attract customers to their online platforms. A couple of years ago, those two companies generated sales of over US$3 billion in just six days during Diwali. India’s small retailers reacted by calling for a boycott of online shopping.

If you want to know the eventual fate of India’s local markets and small retailers, look no further than what US Treasury Secretary Steven Mnuchin said in 2019. He stated that Amazon had “destroyed the retail industry across the United States.”

AMAZON’S CORPORATE PRACTICES

In the US, an investigation by the House Judiciary Committee concluded that Amazon exerts monopoly power over many small- and medium-size businesses. It called for breaking up the company and regulating its online marketplace to ensure that sellers are treated fairly.

Amazon has spied on sellers and appropriated data about their sales, costs and suppliers. It has then used this information to create its own competing versions of their products, often giving its versions superior placement in the search results on its platform.

The Institute for Local Self-Reliance (ILSR) published a revealing document on Amazon in June 2021 that discussed these issues. It also notes that Amazon has been caught using its venture capital fund to invest in start-ups only to steal their ideas and create rival products and services.

Moreover, Amazon’s dominance allows it to function as a gatekeeper: retailers and brands must sell on its site to reach much of the online market and changes to Amazon’s search algorithms or selling terms can cause their sales to evaporate overnight.

Amazon also makes it hard for sellers to reduce their dependence on its platform by making their brand identity almost invisible to shoppers and preventing them from building relationships with their customers. The company strictly limits contact between sellers and customers.

According to the ILSR, Amazon compels sellers to buy its warehousing and shipping services, even though many would get a better deal from other providers, and it blocks independent businesses from offering lower prices on other sites. The company also routinely suspends sellers’ accounts and seizes inventories and cash balances.

The Joint Action Committee against Foreign Retail and E-commerce (JACAFRE) was formed to resist the entry of foreign corporations like Walmart and Amazon into India’s e-commerce market. Its members represent more than 100 national groups, including major trade, workers’ and farmers’ organisations.

JACAFRE issued a statement in 2018 on Walmart’s acquisition of Flipkart, arguing that it undermines India’s economic and digital sovereignty and the livelihoods of millions in India. The committee said the deal would lead to Walmart and Amazon dominating India’s e-retail sector. It would also allow them to own India’s key consumer and other economic data, making them the country’s digital overlords, joining the ranks of Google and Facebook.

In January 2021, JACAFRE published an open letter saying that the three new farm laws, passed by parliament in September 2020, centre on enabling and facilitating the unregulated corporatisation of agriculture value chains. This will effectively make farmers and small traders of agricultural produce become subservient to the interests of a few agrifood and e-commerce giants or will eradicate them completely.

Although there was strong resistance to Walmart entering India with its physical stores, online and offline worlds are now merged: e-commerce companies not only control data about consumption but also control data on production and logistics. Through this control, e-commerce platforms can shape much of the physical economy.

What we are witnessing is the deliberate eradication of markets in favour of monopolistic platforms.

BEZOS NOT WELCOME

Amazon’s move into India encapsulates the unfair fight for space between local and global markets. There is a relative handful of multi-billionaires who own the corporations and platforms. And there are the interests of hundreds of millions of vendors and various small-scale enterprises who are regarded by these rich individuals as mere collateral damage to be displaced in their quest for ever-greater profit.

Thanks to the helping hand of various COVID-related lockdowns, which devastated small businesses, the wealth of the world’s billionaires increased by $3.9tn (trillion) between 18 March and 31 December 2020.

In September 2020, Jeff Bezos, Amazon’s executive chairman, could have paid all 876,000 Amazon employees a $105,000 bonus and still be as wealthy as he was before COVID. Jeff Bezos – his fortune constructed on unprincipled methods that have been well documented in recent years – increased his net wealth by $78.2bn during this period.

Bezos’s plan is clear: the plunder of India and the eradication of millions of small traders and retailers and neighbourhood mom and pop shops.

This is a man with few scruples. After returning from a brief flight to space in July, in a rocket built by his private space company, Bezos said during a news conference:

I also want to thank every Amazon employee and every Amazon customer because you guys paid for all of this.”

In response, US congresswoman Nydia Velazquez wrote on Twitter:

While Jeff Bezos is all over the news for paying to go to space, let’s not forget the reality he has created here on Earth.”

She added the hashtag #WealthTaxNow in reference to Amazon’s tax dodging, revealed in numerous reports, not least the May 2021 study ‘The Amazon Method: How to take advantage of the international state system to avoid paying tax’ by Richard Phillips, Senior Research Fellow, Jenaline Pyle, PhD Candidate, and Ronen Palan, Professor of International Political Economy, all based at the University of London.

Little wonder that when Bezos visited India in January 2020, he was hardly welcomed with open arms.

Bezos praised India on Twitter by posting:

Dynamism. Energy. Democracy. #IndianCentury.”

The ruling party’s top man in the BJP foreign affairs department hit back with:

Please tell this to your employees in Washington DC. Otherwise, your charm offensive is likely to be waste of time and money.”

A fitting response, albeit perplexing given the current administration’s proposed sanctioning of the foreign takeover of the economy, not least by the unscrupulous interests that will benefit from the recent farm legislation.

Bezos landed in India on the back of the country’s antitrust regulator initiating a formal investigation of Amazon and with small store owners demonstrating in the streets. The Confederation of All India Traders (CAIT) announced that members of its affiliate bodies across the country would stage sit-ins and public rallies in 300 cities in protest.

In a letter to PM Modi, prior to the visit of Bezos, the secretary of the CAIT, General Praveen Khandelwal, claimed that Amazon, like Walmart-owned Flipkart, was an “economic terrorist” due to its predatory pricing that “compelled the closure of thousands of small traders.”

In 2020, Delhi Vyapar Mahasangh (DVM) filed a complaint against Amazon and Flipkart alleging that they favoured certain sellers over others on their platforms by offering them discounted fees and preferential listing. The DVM lobbies to promote the interests of small traders. It also raised concerns about Amazon and Flipkart entering into tie-ups with mobile phone manufacturers to sell phones exclusively on their platforms.

It was argued by DVM that this was anti-competitive behaviour as smaller traders could not purchase and sell these devices. Concerns were also raised over the flash sales and deep discounts offered by e-commerce companies, which could not be matched by small traders.

The CAIT estimates that in 2019 upwards of 50,000 mobile phone retailers were forced out of business by large e-commerce firms.

Amazon’s internal documents, as revealed by Reuters, indicated that Amazon had an indirect ownership stake in a handful of sellers who made up most of the sales on its Indian platform. This is an issue because in India Amazon and Flipkart are legally allowed to function only as neutral platforms that facilitate transactions between third-party sellers and buyers for a fee.

UNDER INVESTIGATION

The upshot is that India’s Supreme Court recently ruled that Amazon must face investigation by the Competition Commission of India (CCI) for alleged anti-competitive business practices. The CCI said it would probe the deep discounts, preferential listings and exclusionary tactics that Amazon and Flipkart are alleged to have used to destroy competition.

However, there are powerful forces that have been sitting on their hands as these companies have been running amok.

In August 2021, the CAIT attacked the NITI Aayog (the influential policy commission think tank of the Government of India) for interfering in e-commerce rules proposed by the Consumer Affairs Ministry.

The CAIT said that the think tank clearly seems to be under the pressure and influence of the foreign e-commerce giants.

The president of CAIT, BC Bhartia, stated that it is deeply shocking to see such a callous and indifferent attitude of the NITI Aayog whch have remained a silent spectator for so many years when:

…the foreign e-commerce giants have circumvented every rule of the FDI policy and blatantly violated and destroyed the retail and e-commerce landscape of the country but have suddenly decided to open their mouth at a time when the proposed e-commerce rules will potentially end the malpractices of the e-commerce companies.”

Of course, money talks and buys influence. In addition to tens of billions of US dollars invested in India by Walmart and Amazon, Facebook invested US$5.5 billion last year in Mukesh Ambani’s Jio Platforms (e-commerce retail). Google has also invested US$4.5 billion.

Since the early 1990s, when India opened up to neoliberal economics, the country has become increasingly dependent on inflows of foreign capital. Policies are being governed by the drive to attract and retain foreign investment and maintain ‘market confidence’ by ceding to the demands of international capital which ride roughshod over democratic principles and the needs of hundreds of millions of ordinary people. ‘Foreign direct investment’ has thus become the holy grail of the Modi-led administration and the NITI Aayog.

The CAIT has urged the Consumer Affairs Ministry to implement the draft consumer protection e-commerce rules at the earliest as they are in the best interest of the consumers as well as the traders of the country.

Meanwhile, the CCI probably will complete its investigation within two months.

U.S. Takes Down Israeli Spy Software Company

Source: Moon of Alabama

A number of international papers report today on the Israeli hacking company NSO which sells snooping software to various regimes. The software is then used to hijack the phones of regime enemies, political competition or obnoxious journalists. All of that was already well known but the story has new legs as several hundreds of people who were spied on can now be named.

How that came to pass is of interest:

The phones appeared on a list of more than 50,000 numbers that are concentrated in countries known to engage in surveillance of their citizens and also known to have been clients of the Israeli firm, NSO Group, a worldwide leader in the growing and largely unregulated private spyware industry, the investigation found.

The list does not identify who put the numbers on it, or why, and it is unknown how many of the phones were targeted or surveilled. But forensic analysis of the 37 smartphones shows that many display a tight correlation between time stamps associated with a number on the list and the initiation of surveillance, in some cases as brief as a few seconds.

Forbidden Stories, a Paris-based journalism nonprofit, and Amnesty International, a human rights group, had access to the list and shared it with the news organizations, which did further research and analysis. Amnesty’s Security Lab did the forensic analyses on the smartphones.

The numbers on the list are unattributed, but reporters were able to identify more than 1,000 people spanning more than 50 countries through research and interviews on four continents.

Who might have made such a list and who would give it to Amnesty and Forbidden Stories?

NSO is one of the Israeli companies that is used to monetize the work of the Israel’s military intelligence unit 8200. ‘Former’ members of 8200 move to NSO to produce spy tools which are then sold to foreign governments. The license price is $7 to 8 million per 50 phones to be snooped at. It is a shady but lucrative business for the company and for the state of Israel.

NSO denies the allegations that its software is used for harmful proposes with a lot of bullshittery:

The report by Forbidden Stories is full of wrong assumptions and uncorroborated theories that raise serious doubts about the reliability and interests of the sources. It seems like the “unidentified sources” have supplied information that has no factual basis and are far from reality.

After checking their claims, we firmly deny the false allegations made in their report. Their sources have supplied them with information which has no factual basis, as evident by the lack of supporting documentation for many of their claims. In fact, these allegations are so outrageous and far from reality, that NSO is considering a defamation lawsuit.

The reports make, for example, the claim that the Indian government under Prime Minister Narendra Modi has used the NSO software to spy on the leader of the opposition party Rahul Gandhi.

How could NSO deny that allegation? It can’t.

Further down in the NSO’s statement the company contradicts itself on the issues:

As NSO has previously stated, our technology was not associated in any way with the heinous murder of Jamal Khashoggi. We can confirm that our technology was not used to listen, monitor, track, or collect information regarding him or his family members mentioned in the inquiry. We previously investigated this claim, which again, is being made without validation.

We would like to emphasize that NSO sells it technologies solely to law enforcement and intelligence agencies of vetted governments for the sole purpose of saving lives through preventing crime and terror acts. NSO does not operate the system and has no visibility to the data.

How can NSO deny that the Saudi government, one its known customers, used its software for spying on the then murdered Jamal Khashoggi when it ‘does not operate the system’ and ‘has no visibility to the data’?

You can’t claim both a. assure knowledge and b. to have no way to have gained it.

But back to the real issue:

  • Who has the capacity to make a list of 50,000 phone numbers that include at least 1,000 who were spied on with NSO’s software?
  • Who can ‘leak’ such a list to some NGO and make sure that lots of ‘western’ media jump onto it?
  • Who has an interest in shutting NSO down or to at least make its business more difficult?

The competition I’d say. And the only real one in that field is the National Security Agency of the United States.

The U.S. often uses ‘intelligence’ as a kind of diplomatic currency that keeps other countries dependent on it. If the Saudis have to ask the U.S. for snooping on someone it is much easier to have influence over them. NSO is disturbing that business. There is also the problem that the first class spying software NSO is selling to somewhat shady customers might well fall into the hands of some big U.S. adversary.

The ‘leak’ to Amnesty and Forbidden Stories is thus an instrument to keep some monopolistic control over client regimes and over spying technology. (The Panama Papers were a similar kind of U.S. sponsored ‘leak’, only in the financial field.)

Edward Snowden, who once was committed NSA supporter but leaked NSA documents because he wanted it to stick to the law, is supporting this campaign:

Edward Snowden @Snowden – 16:28 UTC · Jul 18, 2021
Stop what you’re doing and read this. This leak is going to be the story of the year: https://theguardian.com/world/2021/…

Edward Snowden @Snowden – 15:23 UTC · Jul 19, 2021
There are certain industries, certain sectors, from which there is no protection. We don’t allow a commercial market in nuclear weapons. If you want to protect yourself you have to change the game, and the way we do that is by ending this trade.
Guardian: Edward Snowden calls for spyware trade ban amid Pegasus revelations

Snowden seems to say that NSO, which sells it software only to governments, should stop doing so but that the NSA should continue the use of such spying instrument:

Speaking in an interview with the Guardian, Snowden said the consortium’s findings illustrated how commercial malware had made it possible for repressive regimes to place vastly more people under the most invasive types of surveillance.

Snowden’s opinion on this is kind of strange:

chinahand @chinahand – 17:28 UTC · Jul 19, 2021
fascinating how Mr “US state surveillance is the greatest threat to humanity” gets worked up about the fact that a bit of state surveillance is apparently outsourced to a private contractor by mid and low tier state actors.

Edward Snowden @Snowden – 17:06 UTC · Jul 19, 2021
Read about the Biden, Trump, and Obama officials who accepted blood money from the NSO group to bury any efforts at accountability — even *after* their involvement in the death and detention of journalists and rights defenders around the world!
WaPo: How Washington power brokers gained from NSO’s spyware ambitions

The uproar in the the media created by the NSO revelation is already having the desired effect:

Amazon Web Services (AWS) has shut down infrastructure and accounts linked to Israeli surveillance vendor NSO Group, Amazon said in a statement.

The move comes as a group of media outlets and activist organizations published new research into NSO’s malware and phone numbers potentially selected for targeting by NSO’s government clients.

“When we learned of this activity, we acted quickly to shut down the relevant infrastructure and accounts,” an AWS spokesperson told Motherboard in an email.

AWs has for years known about NSO’s activities. NSO has been using CloudFront, a content delivering network owned by Amazon:

CloudFront infrastructure was used in deployments of NSO’s malware against targets, including on the phone of a French human rights lawyer, according to Amnesty’s report. The move to CloudFront also protects NSO somewhat from researchers or other third parties trying to unearth the company’s infrastructure.

“The use of cloud services protects NSO Group from some Internet scanning techniques,” Amnesty’s report added.

That protection is no longer valid. NSO will have quite some problems to replace such a convenient service.

Israel will whine about it but it seems to me that the U.S. has decided to shut NSO down.

For you and me that will only marginally lower the risk of being spied on.

The Eurasian Big Bang

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How China and Russia Are Running Rings Around Washington

By Pepe Escobar

Source: TomDispatch.com

The several hundred Republicans who have thrown their hats into the ring for the 2016 presidential race and the war hawks in Congress (mainly but hardly only Republicans) have already been in full howl about the Vienna nuclear deal with Iran. Jeb Bush took about two seconds to label it “appeasement,” instantly summoning up the image of British Prime Minister Neville Chamberlain giving in to Hitler before World War II; former Arkansas Governor Mike Huckabee spared no metaphor in labeling the agreement “a deal that empowers an evil Iranian regime to carry out its threat to ‘wipe Israel off the map’ and bring ‘death to America’”; Senator Lindsey Graham called it a “possible death sentence for Israel”; this year’s leading billionaire candidate, Donald Trump, summed up his opinion of the deal in one you’re-fired-style word, “ridiculous”; Senator John McCain described Secretary of State John Kerry, who negotiated the deal, as “delusional”; and Senator… I mean, Israeli Prime Minister Benjamin Netanyahu mockingly turned Chamberlain’s infamous “peace in our time” into “peace at any price,” dismissed the deal as a catastrophe filled with “absurdities,” and then appeared on every American media venue imaginable to denounce it.  And that’s just to start down the usual list of suspects. Even Senator Rand Paul swore he would vote against the agreement (though his father called it “to the benefit of world peace”), while Wisconsin Governor Scott Walker was typical of Republican presidential candidates in swearing that he would personally scuttle the deal on his first day in the Oval Office.

This, in short, is the mad version of international policy that makes Washington a claustrophobic echo chamber.  After all, the choice isn’t actually between Iran having no nuclear “breakout” capacity or regaining that capacity 15 years from now (as the present deal seems to offer); the choice is between an agreement for 15 verifiably non-weaponized years and a guarantee of nothing whatsoever.  And if you’ve just checked off that nothing-whatsoever column, the alternative is to somehow crush the Iranians, to force them into submission.  It is, in other words, some version of war.  Two questions on that: How successful has war in the Greater Middle East been as an American policy weapon these last 13 years?  And what makes anyone think that, when even Dick Cheney and crew couldn’t bring themselves to pull the trigger on Iran, Jeb B. or any of the other candidates will be likely to do so in an ISIS-enriched world in 2017?

When you’ve satisfied yourself on those two questions, consider the seldom-discussed larger context within which twenty-first-century nuclear politics has taken place.  In these last years, the Pakistanis, the Indians, the Russians, and the Americans, to name just four nuclear powers, have either been expanding or “modernizing” their nuclear stockpiles in significant ways.  And god knows what the Israelis were doing with their super-secret, never officially acknowledged, but potentially civilization-busting atomic arsenal of 80 or more weapons, while the North Koreans were turning themselves into a nuclear mini-power.  Nonetheless, the focus of nuclear attention and the question of “disarmament” has remained almost exclusively on a country that had no such weapons, has officially disavowed them, and at this point, at least, doesn’t even have a weapons program.  And note that no one who is anyone in Washington considers any of this the least bit strange.

In this context, that irrepressible TomDispatch regular Pepe Escobar offers another kind of lens-widening exercise when it comes to the Iranian deal.  He focuses on a subject that Washington has yet to fully absorb: changing relations in Eurasia.  Few here have noticed, but while the Vienna deal was being negotiated, Russia and China, countries the Pentagon has just officially labeled as “threats,” have been moving mountains (quite literally in some cases) to integrate ever larger parts of that crucial land mass, that “world island,” into a vast economic zone that, if all goes as they wish, will be beyond Washington’s power and control.  This is a remarkable development that, despite the coming two months of sound and fury about Iran, won’t be at the top of any news report, which is why you need a website like TomDispatch to keep up with the times. Tom

The Eurasian Big Bang 
How China and Russia Are Running Rings Around Washington
By Pepe Escobar

Let’s start with the geopolitical Big Bang you know nothing about, the one that occurred just two weeks ago. Here are its results: from now on, any possible future attack on Iran threatened by the Pentagon (in conjunction with NATO) would essentially be an assault on the planning of an interlocking set of organizations — the BRICS nations (Brazil, Russia, India, China, and South Africa), the SCO (Shanghai Cooperation Organization), the EEU (Eurasian Economic Union), the AIIB (the new Chinese-founded Asian Infrastructure Investment Bank), and the NDB (the BRICS’ New Development Bank) — whose acronyms you’re unlikely to recognize either.  Still, they represent an emerging new order in Eurasia.

Tehran, Beijing, Moscow, Islamabad, and New Delhi have been actively establishing interlocking security guarantees. They have been simultaneously calling the Atlanticist bluff when it comes to the endless drumbeat of attention given to the flimsy meme of Iran’s “nuclear weapons program.”  And a few days before the Vienna nuclear negotiations finally culminated in an agreement, all of this came together at a twin BRICS/SCO summit in Ufa, Russia — a place you’ve undoubtedly never heard of and a meeting that got next to no attention in the U.S.  And yet sooner or later, these developments will ensure that the War Party in Washington and assorted neocons (as well as neoliberalcons) already breathing hard over the Iran deal will sweat bullets as their narratives about how the world works crumble.

The Eurasian Silk Road

With the Vienna deal, whose interminable build-up I had the dubious pleasure of following closely, Iranian Foreign Minister Javad Zarif and his diplomatic team have pulled the near-impossible out of an extremely crumpled magician’s hat: an agreement that might actually end sanctions against their country from an asymmetric, largely manufactured conflict.

Think of that meeting in Ufa, the capital of Russia’s Bashkortostan, as a preamble to the long-delayed agreement in Vienna. It caught the new dynamics of the Eurasian continent and signaled the future geopolitical Big Bangness of it all. At Ufa, from July 8th to 10th, the 7th BRICS summit and the 15th Shanghai Cooperation Organization summit overlapped just as a possible Vienna deal was devouring one deadline after another.

Consider it a diplomatic masterstroke of Vladmir Putin’s Russia to have merged those two summits with an informal meeting of the Eurasian Economic Union (EEU). Call it a soft power declaration of war against Washington’s imperial logic, one that would highlight the breadth and depth of an evolving Sino-Russian strategic partnership. Putting all those heads of state attending each of the meetings under one roof, Moscow offered a vision of an emerging, coordinated geopolitical structure anchored in Eurasian integration. Thus, the importance of Iran: no matter what happens post-Vienna, Iran will be a vital hub/node/crossroads in Eurasia for this new structure.

If you read the declaration that came out of the BRICS summit, one detail should strike you: the austerity-ridden European Union (EU) is barely mentioned. And that’s not an oversight. From the point of view of the leaders of key BRICS nations, they are offering a new approach to Eurasia, the very opposite of the language of sanctions.

Here are just a few examples of the dizzying activity that took place at Ufa, all of it ignored by the American mainstream media. In their meetings, President Putin, China’s President Xi Jinping, and Indian Prime Minister Narendra Modi worked in a practical way to advance what is essentially a Chinese vision of a future Eurasia knit together by a series of interlocking “new Silk Roads.” Modi approved more Chinese investment in his country, while Xi and Modi together pledged to work to solve the joint border issues that have dogged their countries and, in at least one case, led to war.

The NDB, the BRICS’ response to the World Bank, was officially launched with $50 billion in start-up capital. Focused on funding major infrastructure projects in the BRICS nations, it is capable of accumulating as much as $400 billion in capital, according to its president, Kundapur Vaman Kamath. Later, it plans to focus on funding such ventures in other developing nations across the Global South — all in their own currencies, which means bypassing the U.S. dollar.  Given its membership, the NDB’s money will clearly be closely linked to the new Silk Roads. As Brazilian Development Bank President Luciano Coutinhostressed, in the near future it may also assist European non-EU member states like Serbia and Macedonia. Think of this as the NDB’s attempt to break a Brussels monopoly on Greater Europe. Kamath even advanced the possibility of someday aidingin the reconstruction of Syria.

You won’t be surprised to learn that both the new Asian Infrastructure Investment Bank and the NDB are headquartered in China and will work to complement each other’s efforts. At the same time, Russia’s foreign investment arm, the Direct Investment Fund (RDIF), signed a memorandum of understanding with funds from other BRICS countries and so launched an informal investment consortium in which China’s Silk Road Fund and India’s Infrastructure Development Finance Company will be key partners.

Full Spectrum Transportation Dominance

On the ground level, this should be thought of as part of the New Great Game in Eurasia. Its flip side is the Trans-Pacific Partnership in the Pacific and the Atlantic version of the same, the Transatlantic Trade and Investment Partnership, both of which Washington is trying to advance to maintain U.S. global economic dominance. The question these conflicting plans raise is how to integrate trade and commerce across that vast region. From the Chinese and Russian perspectives, Eurasia is to be integrated via a complex network of superhighways, high-speed rail lines, ports, airports, pipelines, and fiber optic cables. By land, sea, and air, the resulting New Silk Roads are meant to create an economic version of the Pentagon’s doctrine of “Full Spectrum Dominance” — a vision that already has Chinese corporate executives crisscrossing Eurasia sealing infrastructure deals.

For Beijing — back to a 7% growth rate in the second quarter of 2015 despite a recent near-panic on the country’s stock markets — it makes perfect economic sense: as labor costs rise, production will be relocated from the country’s Eastern seaboard to its cheaper Western reaches, while the natural outlets for the production of just about everything will be those parallel and interlocking “belts” of the new Silk Roads.

Meanwhile, Russia is pushing to modernize and diversify its energy-exploitation-dependent economy. Among other things, its leaders hope that the mix of those developing Silk Roads and the tying together of the Eurasian Economic Union — Russia, Armenia, Belarus, Kazakhstan, and Kyrgyzstan — will translate into myriad transportation and construction projects for which the country’s industrial and engineering know-how will prove crucial.

As the EEU has begun establishing free trade zones with India, Iran, Vietnam, Egypt, and Latin America’s Mercosur bloc (Argentina, Brazil, Paraguay, Uruguay, and Venezuela), the initial stages of this integration process already reach beyond Eurasia. Meanwhile, the SCO, which began as little more than a security forum, is expanding and moving into the field of economic cooperation.  Its countries, especially four Central Asian “stans” (Kazakhstan, Kyrgyzstan, Uzbekistan, and Tajikistan) will rely ever more on the Chinese-driven Asia Infrastructure Investment Bank (AIIB) and the NDB. At Ufa, India and Pakistan finalized an upgrading process in which they have moved from observers to members of the SCO. This makes it an alternative G8.

In the meantime, when it comes to embattled Afghanistan, the BRICS nations and the SCO have now called upon “the armed opposition to disarm, accept the Constitution of Afghanistan, and cut ties with Al-Qaeda, ISIS, and other terrorist organizations.” Translation: within the framework of Afghan national unity, the organization would accept the Taliban as part of a future government. Their hopes, with the integration of the region in mind, would be for a future stable Afghanistan able to absorb more Chinese, Russian, Indian, and Iranian investment, and the construction — finally! — of a long-planned, $10 billion, 1,420-kilometer-long Turkmenistan-Afghanistan-Pakistan-India (TAPI) gas pipeline that would benefit those energy-hungry new SCO members, Pakistan and India. (They would each receive 42% of the gas, the remaining 16% going to Afghanistan.)

Central Asia is, at the moment, geographic ground zero for the convergence of the economic urges of China, Russia, and India. It was no happenstance that, on his way to Ufa, Prime Minister Modi stopped off in Central Asia.  Like the Chinese leadership in Beijing, Moscow looks forward (as a recent document puts it) to the “interpenetration and integration of the EEU and the Silk Road Economic Belt” into a “Greater Eurasia” and a “steady, developing, safe common neighborhood” for both Russia and China.

And don’t forget Iran. In early 2016, once economic sanctions are fully lifted, it is expected to join the SCO, turning it into a G9. As its foreign minister, Javad Zarif, made clear recently to Russia’s Channel 1 television, Tehran considers the two countries strategic partners. “Russia,” he said, “has been the most important participant in Iran’s nuclear program and it will continue under the current agreement to be Iran’s major nuclear partner.” The same will, he added, be true when it comes to “oil and gas cooperation,” given the shared interest of those two energy-rich nations in “maintaining stability in global market prices.”

Got Corridor, Will Travel

Across Eurasia, BRICS nations are moving on integration projects. A developing Bangladesh-China-India-Myanmar economic corridor is a typical example. It is now being reconfigured as a multilane highway between India and China. Meanwhile, Iran and Russia are developing a transportation corridor from the Persian Gulf and the Gulf of Oman to the Caspian Sea and the Volga River. Azerbaijan will be connected to the Caspian part of this corridor, while India is planning to use Iran’s southern ports to improve its access to Russia and Central Asia. Now, add in a maritime corridor that will stretch from the Indian city of Mumbai to the Iranian port of Bandar Abbas and then on to the southern Russian city of Astrakhan. And this just scratches the surface of the planning underway.

Years ago, Vladimir Putin suggested that there could be a “Greater Europe” stretching from Lisbon, Portugal, on the Atlantic to the Russian city of Vladivostok on the Pacific. The EU, under Washington’s thumb, ignored him. Then the Chinese started dreaming about and planning new Silk Roads that would, in reverse Marco Polo fashion, extend from Shanghai to Venice (and then on to Berlin).

Thanks to a set of cross-pollinating political institutions, investment funds, development banks, financial systems, and infrastructure projects that, to date, remain largely under Washington’s radar, a free-trade Eurasian heartland is being born. It will someday link China and Russia to Europe, Southwest Asia, and even Africa. It promises to be an astounding development. Keep your eyes, if you can, on the accumulating facts on the ground, even if they are rarely covered in the American media. They represent the New Great — emphasis on that word — Game in Eurasia.

Location, Location, Location

Tehran is now deeply invested in strengthening its connections to this new Eurasia and the man to watch on this score is Ali Akbar Velayati. He is the head of Iran’s Center for Strategic Research and senior foreign policy adviser to Supreme Leader Ayatollah Khamenei. Velayati stresses that security in Asia, the Middle East, North Africa, Central Asia, and the Caucasus hinges on the further enhancement of a Beijing-Moscow-Tehran triple entente.

As he knows, geo-strategically Iran is all about location, location, location. That country offers the best access to open seas in the region apart from Russia and is the only obvious east-west/north-south crossroads for trade from the Central Asian “stans.” Little wonder then that Iran will soon be an SCO member, even as its “partnership” with Russia is certain to evolve. Its energy resources are already crucial to and considered a matter of national security for China and, in the thinking of that country’s leadership, Iran also fulfills a key role as a hub in those Silk Roads they are planning.

That growing web of literal roads, rail lines, and energy pipelines, asTomDispatch has previously reported, represents Beijing’s response to the Obama administration’s announced “pivot to Asia” and the U.S. Navy’s urge to meddle in the South China Sea. Beijing is choosing to project power via a vast set of infrastructure projects, especially high-speed rail lines that will reach from its eastern seaboard deep into Eurasia. In this fashion, the Chinese-built railway from Urumqi in Xinjiang Province to Almaty in Kazakhstan will undoubtedly someday be extended to Iran and traverse that country on its way to the Persian Gulf.

A New World for Pentagon Planners

At the St. Petersburg International Economic Forum last month, Vladimir Putin told PBS’s Charlie Rose that Moscow and Beijing had always wanted a genuine partnership with the United States, but were spurned by Washington. Hats off, then, to the “leadership” of the Obama administration. Somehow, it has managed to bring together two former geopolitical rivals, while solidifying their pan-Eurasian grand strategy.

Even the recent deal with Iran in Vienna is unlikely — especially given the war hawks in Congress — to truly end Washington’s 36-year-long Great Wall of Mistrust with Iran. Instead, the odds are that Iran, freed from sanctions, will indeed be absorbed into the Sino-Russian project to integrate Eurasia, which leads us to the spectacle of Washington’s warriors, unable to act effectively, yet screaming like banshees.

NATO’s supreme commander Dr. Strangelove, sorry, American General Philip Breedlove, insists that the West must create a rapid-reaction force — online — to counteract Russia’s “false narratives.” Secretary of Defense Ashton Carter claims to be seriously considering unilaterally redeploying nuclear-capable missiles in Europe. The nominee to head the Joint Chiefs of Staff, Marine Commandant Joseph Dunford, recently directly labeled Russia America’s true “existential threat”; Air Force General Paul Selva, nominated to be the new vice chairman of the Joint Chiefs, seconded that assessment, using the same phrase and putting Russia, China and Iran, in that order, as more threatening than the Islamic State (ISIS). In the meantime, Republican presidential candidates and a bevy of congressional war hawks simply shout and fume when it comes to both the Iranian deal and the Russians.

In response to the Ukrainian situation and the “threat” of a resurgent Russia (behind which stands a resurgent China), a Washington-centric militarization of Europe is proceeding apace. NATO is now reportedly obsessed with what’s being called “strategy rethink” — as in drawing up detailed futuristic war scenarios on European soil. As economist Michael Hudson has pointed out, even financial politics are becoming militarized and linked to NATO’s new Cold War 2.0.

In its latest National Military Strategy, the Pentagon suggests that the risk of an American war with another nation (as opposed to terror outfits), while low, is “growing” and identifies four nations as “threats”: North Korea, a case apart, and predictably the three nations that form the new Eurasian core: Russia, China, and Iran. They are depicted in the document as “revisionist states,” openly defying what the Pentagon identifies as “international security and stability”; that is, the distinctly un-level playing field created by globalized, exclusionary, turbo-charged casino capitalism and Washington’s brand of militarism.

The Pentagon, of course, does not do diplomacy. Seemingly unaware of the Vienna negotiations, it continued to accuse Iran of pursuing nuclear weapons. And that “military option” against Iran is never off the table.

So consider it the Mother of All Blockbusters to watch how the Pentagon and the war hawks in Congress will react to the post-Vienna and — though it was barely noticed in Washington — the post-Ufa environment, especially under a new White House tenant in 2017.

It will be a spectacle.  Count on it.  Will the next version of Washington try to make it up to “lost” Russia or send in the troops? Will it contain China or the “caliphate” of ISIS? Will it work with Iran to fight ISIS or spurn it? Will it truly pivot to Asia for good and ditch the Middle East or vice-versa? Or might it try to contain Russia, China, and Iran simultaneously or find some way to play them against each other?

In the end, whatever Washington may do, it will certainly reflect a fear of the increasing strategic depth Russia and China are developing economically, a reality now becoming visible across Eurasia. At Ufa, Putin told Xi on the record: “Combining efforts, no doubt we [Russia and China] will overcome all the problems before us.”

Read “efforts” as new Silk Roads, that Eurasian Economic Union, the growing BRICS block, the expanding Shanghai Cooperation Organization, those China-based banks, and all the rest of what adds up to the beginning of a new integration of significant parts of the Eurasian land mass. As for Washington, fly like an eagle? Try instead: scream like a banshee.

Pepe Escobar is the roving correspondent for Asia Times, an analyst for RTand Sputnik, and a TomDispatch regular. His latest book is Empire of Chaos. Follow him on Facebook by clicking here.