Worst Ever State of the Union in US History

By Stephen Lendman

Source: The Stephen Lendman Blog

With lines scripted for him to recite via teleprompter, crib notes, and an earpiece for instructions, the fake Biden mumbled and bumbled through the regime’s Tuesday state of the union (SOTU) address for 72 painful-to-hear minutes.

It came at a time when undemocratic Dems are waging war at home on Americans targeted for elimination by kill shots and abroad against militarily, morally and ethically superior Russia — what risks humanity-destroying nuclear war if push things too far.

The fake Biden is an embarrassment to what leadership is supposed to be, what’s absent with undemocratic Dems in charge — especially with an imposter, a detached from reality buffoon in the White House.

This year’s SOTU came at a time of hegemon USA’s war against invented enemy Russia, a must-win conflict it’s losing to a superior foe.

Throughout the post-WW II period, the empire of lies and mass-deception always picked fights with militarily inferior nations free from its control — until overstepping by challenging Russia belligerently in support of Nazi-infested Ukraine, a major strategic blunder for which it’s paying dearly. 

Separately in response to international community calls for the Biden regime to aid rescue work in earthquake-devastated northern Syria by lifting illegally imposed sanctions, interventionist Blinken’s so-called spokesman, Price, showed contempt for its people in need by the following perversion of reality remarks, saying:

“It would be…counterproductive for us to reach out to a government” on the US target list for regime change for not subordinating its sovereignty and rights of its people to a higher power in Washington.

And this perversion of reality from Price, falsely claiming that the empire of lies and forever wars on invented enemies provided “more humanitarian assistance to the people of Syria than any other country (sic)” — a bald-faced Big Lie by a regime waging all-out war on nations free from its diabolical control.

Following Obama/Biden regime aggression against Syria in 2011, the empire of lies continued waging war on the country and its people by hot and other means.

At this time, hegemon USA illegally controls about one-third of Syrian territory, including its oil-rich areas and most fertile agricultural land.

Hegemon USA’s so-called 2020 Caesar Act is all about wanting 17 million Syrians starved into submission for failure of Damascus to bend to the will of the empire of lies and forever wars.

At the time of its enactment into US law, Syrian envoy to Russia, Riyad Haddad, explained that threatened US sanctions under the measure “not only target Syria, they directly or indirectly jeopardize all its allies and are also aimed against Persian Gulf countries, so that none of these countries dares to invest in” the Syrian Arab Republic.

“And each party that will say it wants to invest, must get permission from the US.”

The measure is similar to US state terror and illegal sanctions war on Russia, China, Iran, North Korea, Venezuela, Cuba, and other countries free from its control, what aims to inflict enormous harm on their people.

At this time, US hostility toward sovereign independent nations is a sideshow compared to its aggression against Russia, what poses an ominous risk of humanity-destroying nuclear war.

As in virtually all his public remarks, the fake Biden’s SOTU trampled on truth by a litany of pre-scripted bald-faced Big Lies.

It’s how the empire of lies operates on the world stage, treating truth and full disclosure of major issues as mortal enemies. 

On March 11, 2022, the fake Biden called tanks to Nazi-infested Ukraine “WW III.”

Launched preemptively by the empire of lies against nonthreatening Russia, it’s been raging long before the fake Biden “announc(ed) that (hegemon USA) will be sending ‘Abram’ tanks to Ukrain(ian)” Nazis days earlier.

Will F-16 or other US warplanes follow — for Russia to target and destroy in flight?

The Russian Federation controls Ukrainian airspace and offshore waters.

Its high-precision hypersonic missiles can target and destroy anything threatening its security.

Sounding detached from reality and delusional, the fake Biden ignored reality about more monster than nation-state USA.

He ignored how Russia is outgunning, outmaneuvering, outwitting and defeating Nazi-infested Ukraine and the empire of lies at the same time.

And at a time of perpetual wars by hot and/or other means on invented enemies, soaring inflation and deepening economic weakness, the fake Biden pretended that Americans never had things better than since undemocratic Dems usurped power in 2020 by brazen election rigging.

And once again he ignored that what’s called covid is seasonal flu renamed, that kill shots are designed to destroy health, that democracy in the US/West exists in fantasy form alone — the real thing not tolerated at home or abroad.

What he called “the great American story” is a humanity-destroying monster.

Tucker Carlson is an exception to dominant fourth estate rubbish.

Commenting on the fake Biden’s Tuesday night SOTU before delivered, he said:

“(I)t would take a lot of brass to stand up on live television and claim that the (empire of lies and forever wars) is better off than it was when you took over” when reality is worlds apart different.

As long as undemocratic Dems run things, the ominous risk of nuclear war will threaten humanity’s survival.

Carlson correctly expected not “a single honest word” from the White House imposter in his SOTU address.

Instead of truth and full disclosure, he recited a litany of bald-faced Big Lies about all things domestic and geopolitical.

He didn’t run for president.

He was installed unelected to serve wealth, power and privileged interests exclusively at the expense of peace and beneficial social change.

At the same time, the regime he represents is waging war on Russia and losing badly to its military and tactical superiority.

On the home front, real inflation as calculated pre-1990 is 16.2%.

Most jobs created are rotten part-time ones paying poverty or sub-poverty wages with few or no benefits.

What the fake Biden called “near record low unemployment for Black and Hispanic workers” is pure fiction.

At a time when the nation’s industrial base operates in low-wage countries, he lied claiming that the empire of lies “created 800,000 good-paying manufacturing jobs, the fastest growth in 40 years (sic).”

He compounded his Big Lie by falsely claiming that “we’re exporting American products and creating American jobs (sic).”

He turned truth on its head and trampled on it by falsely blaming Russia for made-in-the-USA inflation, a fake pandemic and perpetual war-making on invented enemies.

Virtually every positive claim he made was a bald-faced Big Lie — reflecting his detachment from reality.

The empire of lies and perpetual wars on invented enemies is declining because of its imperial arrogance, its endless wars against invented enemies, and unwillingness to change its wicked ways.

The fake Biden is symbolic of hegemon USA’s nonexistent exceptionalism, its illusory moral superiority and fantasy military supremacy.

It’s the same dynamic that doomed other empires in world history.

The long ago founded US republic no longer exists, replaced by the imperial state and ruinous military Keynesianism while vital homeland needs go begging.

China, Russia and other independent nations are rising in preeminence on the world stage at a time of hegemon USA’s fall from grace with no prospect of turning things around.

The nation I grew up in long ago no longer exists.

A humanity-destroying monster replaced it.

If not effectively challenged and changed, US-launched nuclear war may kill us all.

A Final Comment

The fake Biden lied and mass-deceived by pretending to represent “all Americans.”

He was installed unelected to wage perpetual wars by hot and/or other means on invented enemies to serve wealth, power and privileged interests exclusively.

The regime he represents is an unparalleled menace to humanity at home and worldwide.

As long as it’s empowered, we’re more greatly endangered than ever before in world history because of its contempt for peace in favor of perpetual war-making on invented enemies.

How “Food Shortages” & Economic Collapse Protects the Status Quo

Engineered Food & Poverty Crises Secure Continued US Dominance

By Colin Todhunter

Source: Off-Guardian

In March 2022, UN Secretary-General Antonio Guterres warned of a “hurricane of hunger and a meltdown of the global food system” in the wake of the crisis in Ukraine.

Guterres said food, fuel and fertiliser prices were skyrocketing with supply chains being disrupted and added this is hitting the poorest the hardest and planting the seeds for political instability and unrest around the globe.

According to the International Panel of Experts on Sustainable Food Systems, there is currently sufficient food and no risk of global food supply shortages.

We see an abundance of food but skyrocketing prices. The issue is not food shortage but speculation on food commodities and the manipulation of an inherently flawed global food system that serves the interests of corporate agribusiness traders and suppliers of inputs at the expense of people’s needs and genuine food security.

The war in Ukraine is a geopolitical trade and energy conflict. It is largely about the US engaging in a proxy war against Russia and Europe by attempting to separate Europe from Russia and imposing sanctions on Russia to harm Europe and make it further dependent on the US.

Economist Professor Michael Hudson recently stated that ultimately the war is against Europe and Germany. The purpose of the sanctions is to prevent Europe and other allies from increasing their trade and investment with Russia and China.

Neoliberal policies since the 1980s have hollowed out the US economy. With its productive base severely weakened, the only way for the US to maintain hegemony is to undermine China and Russia and weaken Europe.

Hudson says that, beginning a year ago, Biden and the US neocons attempted to block Nord Stream 2 and all (energy) trade with Russia so that the US could monopolise it itself.

Despite the ‘green agenda’ currently being pushed, the US still relies on fossil fuel-based energy to project its power abroad. Even as Russia and China move away from the dollar, the control and pricing of oil and gas (and resulting debt) in dollars remains key to US attempts to retain hegemony.

The US knew beforehand how sanctions on Russia would play out. They would serve to divide the world into two blocks and fuel a new cold war with the US and Europe on one side with China and Russia being the two main countries on the other.

US policymakers knew Europe would be devastated by higher energy and food prices and food importing countries in the Global South would suffer due to rising costs.

It is not the first time the US has engineered a major crisis to maintain global hegemony and a spike in key commodity prices that effectively trap countries into dependency and debt.

In 2009, Andrew Gavin Marshall described how in 1973 – not long after coming off the gold standard – Henry Kissinger was integral to manipulating events in the Middle East (the Arab-Israeli war and the ‘energy crisis’). This served to continue global hegemony for the US, which had virtually bankrupted itself due to its war in Vietnam and had been threatened by the economic rise of Germany and Japan.

Kissinger helped secure huge OPEC oil price rises and thus sufficient profits for Anglo-American oil companies that had over-leveraged themselves in North Sea oil. He also cemented the petrodollar system with the Saudis and subsequently placed African nations, which had embarked on a path of (oil-based) industrialisation, on a treadmill of dependency and debt due to the spike in oil prices.

It is widely believed that the high-priced oil policy was aimed at hurting Europe, Japan and the developing world.

Today, the US is again waging a war on vast swathes of humanity, whose impoverishment is intended to ensure they remain dependent on the US and the financial institutions it uses to create dependency and indebtedness – the World Bank and IMF.

Hundreds of millions will experience (are experiencing) poverty and hunger due to US policy. These people (the ones that the US and Pfizer et al supposedly cared so much about and wanted to get a jab into each of their arms) are regarded with contempt and collateral damage in the great geopolitical game.

Contrary to what many believe, the US has not miscalculated the outcome of the sanctions placed on Russia. Michael Hudson notes energy prices are increasing, benefiting US oil companies and US balance of payments as an energy exporter. Moreover, by sanctioning Russia, the aim is to curtail Russian exports (of wheat and gas used for fertiliser production) and for agricultural commodity prices to therefore increase. This too will also benefit the US as an agricultural exporter.

This is how the US seeks to maintain dominance over other countries.

Current policies are designed to create a food and debt crisis for poorer nations especially. The US can use this debt crisis to force countries to continue privatising and selling off their public assets in order to service the debts to pay for the higher oil and food imports.

This imperialist strategy comes on the back of ‘COVID relief’ loans which have served a similar purpose. In 2021, an Oxfam review of IMF COVID-19 loans showed that 33 African countries were encouraged to pursue austerity policies. The world’s poorest countries are due to pay $43 billion in debt repayments in 2022, which could otherwise cover the costs of their food imports.

Oxfam and Development Finance International have also revealed that 43 out of 55 African Union member states face public expenditure cuts totalling $183 billion over the next five years.

The closure of the world economy in March 2020 (‘lockdown’) served to trigger an unprecedented process of global indebtedness.

Conditionalities mean national governments will have to capitulate to the demands of Western financial institutions. These debts are largely dollar-denominated, helping to strengthen the US dollar and US leverage over countries.

The US is creating a new world order and needs to ensure much of the Global South remains in its orbit of influence rather than ending up in the Russian and especially Chinese camp and its belt road initiative for economic prosperity.

Post-COVID, this is what the war in Ukraine, sanctions on Russia and the engineered food and energy crisis are really about.

Back in 2014, Michael Hudson stated that the US has been able to dominate most of the Global South through agriculture and control of the food supply. The World Bank’s geopolitical lending strategy has transformed countries into food deficit areas by convincing them to grow cash crops – plantation export crops – not to feed themselves with their own food crops.

The oil sector and agribusiness have been joined at the hip as part of US geopolitical strategy.

The dominant notion of ‘food security’ promoted by global agribusiness players like Cargill, Archer Daniel Midland, Bunge and Louis Dreyfus and supported by the World Bank is based on the ability of people and nations to purchase food. It has nothing to do with self-sufficiency and everything to do with global markets and supply chains controlled by giant agribusiness players.

Along with oil, the control of global agriculture has been a linchpin of US geopolitical strategy for many decades. The Green Revolution was exported courtesy of oil-rich interests and poorer nations adopted agri-capital’s chemical- and oil-dependent model of agriculture that required loans for inputs and related infrastructure development.

It entailed trapping nations into a globalised food system that relies on export commodity mono-cropping to earn foreign exchange linked to sovereign dollar-denominated debt repayment and World Bank/IMF ‘structural adjustment’ directives. What we have seen has been the transformation of many countries from food self-sufficiency into food deficit areas.

And what we have also seen is countries being placed on commodity crop production treadmills. The need for foreign currency (US dollars) to buy oil and food entrenches the need to increase cash crop production for exports.

The World Trade Organization’s Agreement on Agriculture (AoA) set out the trade regime necessary for this type of corporate dependency that masquerades as ‘global food security’.

This is explained in a July 2022 report by Navdanya International – Sowing Hunger, Reaping Profits – A Food Crisis by Design – which notes international trade laws and trade liberalisation has benefited large agribusiness and continue to piggyback off the implementation of the Green Revolution.

The report states that US lobby and trade negotiations were headed by former Cargill Investors Service CEO and Goldman Sachs executive – Dan Amstutz – who in 1988 was appointed chief negotiator for the Uruguay round of GATT by Ronald Reagan. This helped to enshrine the interests of US agribusiness into the new rules that would govern the global trade of commodities and subsequent waves of industrial agriculture expansion.

The AoA removed protection of farmers from global market prices and fluctuations. At the same time, exceptions were made for the US and the EU to continue subsidising their agriculture to the advantage of large agribusiness.

Navdanya notes:

“With the removal of state tariff protections and subsidies, small farmers were left destitute. The result has been a disparity in what farmers earn for what they produce, versus what consumers pay, with farmers earning less and consumers paying more as agribusiness middlemen take the biggest cut.”

‘Food security’ has led to the dismantling of food sovereignty and food self-sufficiency for the sake of global market integration and corporate power.

We need look no further than India to see this in action. The now repealed recent farm legislation in India was aimed at giving the country the ‘shock therapy’ of neoliberalism that other countries have experienced.

The ‘liberalising’ legislation was in part aimed at benefiting US agribusiness interests and trapping India into food insecurity by compelling the country to eradicate its food buffer stocks – so vital to the nation’s food security – and then bid for food on a volatile global market from agribusiness traders with its foreign reserves.

The Indian government was only prevented from following this route by the massive, year-long farmer protest that occurred.

The current crisis is also being fuelled by speculation. Navdanya cites an investigation by Lighthouse Reports and The Wire to show how speculation by investment firms, banks and hedge funds on agricultural commodities are profiting off rising food prices. Commodity future prices are no longer linked to actual supply and demand in the market but are based purely on speculation.

Archer Daniels Midland, Bunge, Cargill and Louis Dreyfus and investment funds like Black Rock and Vanguard continue to make huge financial killings, resulting in the price of bread almost doubling in some poorer countries.

The cynical ‘solution’ promoted by global agribusiness to the current food crisis is to urge farmers to produce more and seek better yields as if the crisis is that of underproduction. It means more chemical inputs, more genetic engineering techniques and suchlike, placing more farmers in debt and trapped in dependency.

It is the same old industry lie that the world will starve without its products and requires more of them. The reality is that the world is facing hunger and rising food prices because of the system big agribusiness has instituted.

And it is the same old story – pushing out new technologies in search of a problem and then using crises as justification for their rollout while ignoring the underlying reasons for such crises.

Navdanya sets out possible solutions to the current situation based on principles of agroecology, short supply lines, food sovereignty and economic democracy – policies that have been described at length in many articles and official reports over the years.

As for fighting back against the onslaught on ordinary people’s living standards, support is gathering among the labour movement in places like the UK. Rail union leader Mick Lynch is calling for a working class movement based on solidarity and class consciousness to fight back against a billionaire class that is acutely aware of its own class interests.

For too long, ‘class’ has been absent from mainstream political discourse. It is only through organised, united protest that ordinary people will have any chance of meaningful impact against the new world order of tyrannical authoritarianism and the devastating attacks on ordinary people’s rights, livelihoods and standards of living that we are witnessing.

Europe, more than Putin, must shoulder the blame for the energy crisis

The same arrogant, self-righteous posturing from the West that fuelled the Ukraine war is now plunging Europe into recession

Ukraine’s President Volodymyr Zelensky appears on a giant screen as he addresses a Nato summit in Madrid, 29 June 2022 (AFP)

By Jonathan Cook

Source: Middle East Eye

Outraged western leaders are threatening a price cap on imports of Russian natural gas after Moscow cut supplies to Europe this month, deepening an already dire energy and cost-of-living crisis. In response, Russian President Vladimir Putin has warned that Europe will “freeze” this winter unless there is a change of tack.

In this back-and-forth, the West keeps stepping up the rhetoric. Putin is accused of using a mix of blackmail and economic terror against Europe. His actions supposedly prove once more that he is a monster who cannot be negotiated with, and a threat to world peace.

Denying fuel to Europe as winter approaches, in a bid to weaken the resolve of European states to support Kyiv and alienate European publics from their leaders, is Putin’s opening gambit in a plot to expand his territorial ambitions from Ukraine to the rest of Europe.

Or so runs the all-too-familiar narrative shared by western politicians and media.

In fact, Europe’s arrogant, self-righteous posturing over Russian gas supplies, divorced from any discernible geopolitical reality, reflects precisely the same foolhardy mindset that helped provoke Moscow’s invasion of Ukraine in the first place.

It is also the reason why there has been no exit ramp – a path to negotiations – even as Russia has taken vast swaths of Ukraine’s eastern and southern flanks – territory that cannot be reclaimed without a further massive loss of life on both sides, as the limited Ukrainian assault around Kharkiv has highlighted.

The western media has to carry a major share of the blame for these serial failures of diplomacy. Journalists have amplified only too loudly and uncritically what US and European leaders want their publics to believe is going on. But maybe it is time that Europeans heard a little of how things might look to Russian eyes.

Economic war

The media could start by dropping their indignation at “insolent” Moscow for refusing to supply Europe with gas. After all, Moscow has been only too clear about the reason for the shutdown of gas supplies: it is in retaliation for the West imposing economic sanctions – a form of collective punishment on the wider Russian population that risks violating the laws of war. 

The West is well practised in waging economic war on weak states, usually in a futile attempt to topple leaders they don’t like or as a softening-up exercise before it sends in troops or proxies.

Iran has faced decades of sanctions that have inflicted a devastating toll on its economy and population but done nothing to bring down the government.

Meanwhile, Washington is waging what amounts to its own form of economic terrorism on the Afghan people to punish the ruling Taliban for driving out US occupation forces last year in a humiliating fashion. The United Nations reported last month that sanctions had contributed to the risk of more than a million Afghan children dying from starvation.

There is nothing virtuous about the current economic sanctions on Russia either, any more than there is about the blackballing of Russian sportspeople and cultural icons. The sanctions are not intended to push Putin to the negotiating table. As US President Biden made clear in March, the West is planning for a long war and he wants to see Putin removed from power

Rather, the goal has been to weaken his authority and – in some fantasy scenario – encourage his subordinates to turn on him. The West’s game plan – if it can be dignified with that term – is to force Putin to over-extend Russian forces in Ukraine by flooding the battlefield with armaments, and then watch his government collapse under the weight of popular discontent at home.

But in practice, the reverse has been happening, just as it did through the 1990s when the West imposed sanctions on Iraq’s Saddam Hussein. Putin’s position has been bolstered, as it will continue to be whether Russia is triumphing or losing on the battlefield. 

The West’s economic sanctions against Russia have been doubly foolish. They have reinforced Putin’s message that the West seeks to destroy Russia, just as it previously did IraqAfghanistanLibyaSyria and Yemen. A strongman is all that stands between an independent Russia and servitude, Putin can plausibly argue.

And at the same time, the sanctions have demonstrated to Russians how truly artful their leader is. Economic pressure from the West has largely backfired: sanctions have barely made an impression on the value of the rouble, while Europe looks to be heading into recession as Putin turns off the gas spigot.

It will doubtless not only be Russians quietly rejoicing at seeing the West get a dose of the medicine it so regularly force-feeds others.

Western conceit

But there is a more troubling dimension to the West’s conceit. It was the same high-handed belief that the West would face no consequences for waging economic warfare on Russia, just as earlier assumed it would be pain-free for Nato to station missiles on Moscow’s doorstep. (Presumably, the effect on Ukrainians was not factored into the calculations.)

The decision to recruit ever-more east European states into the Nato fold over the past two decades not only broke promises made to Soviet and Russian leaders, but flew in the face of advice from the West’s most expert policy-makers.

Guided by the US, Nato countries closed the military noose around Russia year by year, all the while claiming that the noose was entirely defensive.

Nato flirted openly with Ukraine, suggesting that it too might be admitted to their anti-Russia alliance.

The US had a hand in the 2014 protests that overthrew Ukraine’s government, one elected to keep channels open with Moscow. 

With a new government installed, the Ukrainian army incorporated ultra-nationalist, anti-Russia militias that engaged in a devastating civil war with Russian communities in the country’s east.

And all the while, Nato secretly cooperated with and trained that same Ukrainian army.

At no point in the eight long years of Ukraine’s civil war did Europe or the US care to imagine how all these events unfolding in Russia’s backyard might look to ordinary Russians. Might they not fear the West just as much as western publics have been encouraged by their media to fear Moscow? Putin did not need to invent their concern. The West achieved that all by itself.

The encirclement of Russia by Nato was not a one-off error. Western meddling in the coup and support for a nationalist Ukrainian army increasingly hostile to Russia were not one-offs either. Nato’s decision to flood Ukraine with weapons rather than concentrate on diplomacy is no aberration. Nor is the decision to impose economic sanctions on ordinary Russians.

These are all of a piece, a pattern of pathological behaviour by the West towards Russia – and any other resource-rich state that does not utterly submit to western control. If the West were an individual, the patient would be diagnosed as suffering from a severe personality disorder, one with a strong impulse for self-destruction.

Bogeyman needed

Worse still, this impulse does not appear to be open to correction – not as things stand. The truth is that Nato and its US ringmaster have no interest in changing.

Their purpose is to have a credible bogeyman, one that justifies continuing the massive wealth redistribution from ordinary citizens to an elite of the already ultra-rich. A supposed threat to Europe’s safety justifies pouring money into the maw of an expanding war machine masquerading as the “defence industries” – the military, the arms manufacturers, and the ever-growing complex of the surveillance, intelligence and security industries. Both Nato and a US network of more than 800 military bases around the globe just keep growing.

A bogeyman also ensures western publics are unified in their fear and hatred of an external enemy, making them readier to defer to their leaders to protect them – and with it, the institutions of power those leaders uphold and the status quo they represent.

Anyone suggesting meaningful reform of that system can be rounded on as a threat to national security, a traitor or a fool, as Britain’s former Labour leader Jeremy Corbyn found out.

And a bogeyman distracts western publics from thinking about deeper threats, ones that our own leaders – rather than foreigners – are responsible for, such as the climate crisis they not only ignored but still fuel through the very military posturing and global confrontations they use to distract us. It is a perfect circle of self-harm.

Since the fall of the Berlin Wall, and the demise of the Soviet Union, the West has been casting around for a useful bogeyman to replace the Soviet Union, one that supposedly presents an existential threat to western civilisation.

Iraq’s weapons of mass distraction were only 45 minutes away – until we learned they did not, in fact, exist.

Afghanistan’s Taliban was harbouring al-Qaeda – until we learned that the Taliban had offered to hand Osama bin Laden over even before the 9/11 attacks.

There was the terrifying threat from the head-choppers of the Islamic State (IS) group – until we learned that they were the West’s arm’s-length allies in Syria and being supplied with weapons from Libya after it was liberated by the West from its dictator, Muammar Gadaffi.

And there is always Iran and its supposed nuclear weapons to worry about, even though Tehran signed an agreement in 2015 putting in place strict international oversight to prevent it from developing a bomb – until the US casually discarded the deal under pressure from Israel and chose not to replace it with anything else.

Braced for recession

Each of these threats was so grave it required an enormous expenditure of energy and treasure, until it had served its purpose of terrifying western publics into acquiescence. Invariably, the West’s meddling spawned a backlash that created another temporary enemy.

Now, like a predictable Hollywood sequel, the Cold War is back with a vengeance. Russia’s President Putin has a starring role. And the military-industrial complex is licking its lips with delight.

Ordinary people and small businesses are being told by European leaders to brace for a recession as energy companies once again clock up “eye-watering” profits.

Just as with the financial crash nearly 15 years ago, when the public was required to tighten its belt through austerity policies, a crisis is providing ideal conditions for wealth to be redistributed upwards.

Like other officials, Nato’s Secretary-General Jens Stoltenberg has sounded the alarm about “civil unrest” this winter as prices across Europe soar, even while demanding public money be used to send yet more weapons to Ukraine.

The question is whether western publics will keep buying the narrative of an existential threat that can only be dealt with if they, rather than their leaders, dig deep into their pockets. 

How America Is Crushing Europe

By Eric Zuesse

Source: Modern Diplomacy

America creates, imposes, and enforces the sanctions against Russia, which are forcing up energy-prices in Europe, and are thereby driving Europe’s corporations to move to America, where taxes, safety-and-environmental regulations, and the rights of labor, are far lower, and so profits will be far higher for the investors. Furthermore, America can supply its own energy. Therefore, supply-chains are less dicey in the U.S. than in Europe. There is less and less reason now for a firm to be doing anything in Europe except selling to Europeans, who are becoming increasingly desperate to get whatever they can afford to buy, now that Russia, which had been providing the lowest-cost energy and other commodities, is being strangled out of European markets, by the sanctions. Money can move even when its owner can’t. The European public will now be left farther and farther behind as Europe’s wealth flees — mainly to America (whose Government had created this capital-flight of Europe’s wealth).

Europe’s leaders have cooperated with America’s leaders, to cause this European decline (by joining, instead of rejecting, America’s sanctions against Russia), but Germany’s companies can also enjoy significant benefits from relocating or expanding in America. Germany’s business daily newspaper, Handlelsblatt, reported, on September 25th, “More and more German companies are expanding their locations in North America: Washington attracts German companies with cheap energy and low taxes. This applies above all to the southern states. Berlin is alarmed – and wants to take countermeasures.” (Original: “Immer mehr deutsche Unternehmen bauen ihre Standorte in Nordamerika aus: Washington lockt deutsche Firmen mit billiger Energie und niedrigen Steuern. Das gilt vor allem für die Südstaaten. Berlin ist alarmiert – und will gegensteuern.”) It says that “Numerous German companies are planning to set up or expand their U.S. locations. … U.S. states such as Virginia, Georgia, and Oklahoma, show increasing interest” in offering special inducements for these firms to relocate, or to at least expand, their production in the U.S. For example, Pat Wilson, Commissioner of the Georgia Department of Economic Development, tells German companies that, “Our energy costs are low, and the networks are stable. … Companies coming to Georgia [from Germany] are reducing their carbon footprint.” Considering that one of the major reasons why Germany’s Government is squeezing-out Russia’s fuel-supplies (other than to ‘support democracy in Ukraine’, etc.) is that those Russian supplies are fossil fuels, an important benefit by which America can attract European firms (even on the basis of ‘Green’ arguments) is by advertising bigger ‘energy efficiency’ than in Europe — not necessarily in a strictly environmental sense, but definitely in the bottom-line sense, of lowered energy-costs, since America’s regulations are far less strict than in the EU. 

Also on the 25th, the Irish Examiner bannered “European industry buckles under weight of soaring energy prices: Volkswagen, Europe’s biggest carmaker, warned last week that it could reallocate production out of Germany and eastern Europe if energy prices don’t come down.”

Also on the 25th, Oil Price dot com headlined “Europe Faces An Exodus Of Energy-Intensive Industries”, and mentioned especially that “the U.S. Steel giant ArcelorMittal said earlier this month that it would slash by half production at a steel mill in Germany and a unit at another plant, also in Germany. The company said it had based the decision on high gas prices. … ArcelorMittal earlier this year announced it had plans to expand a Texas operation.”

On September 26th, the New York Times bannered “Factory Jobs Are Booming Like It’s the 1970s: U.S. manufacturing is experiencing a rebound, with companies adding workers amid high consumer demand for products.” In total, “As of August this year, manufacturers had added back about 1.43 million jobs, a net gain of 67,000 workers above prepandemic levels.” And this is only the start of America’s re-industrialization and economic recovery, because the hemorrhaging of jobs from Europe has only just begun. These German firms are getting in on the ground floor in America, leaving Europe’s workers behind, to swim or sink on their own (the ones that can).

Also on September 26th, Thomas Fazi at unherd dot com headlined “The EU is sleepwalking into anarchy: Its sanctions are crippling the bloc’s working class”, and documented that this hollowing-out of Europe’s economies is being experienced the most by Europe’s lower economic classes, who are the least capable of dealing with it but are being abandoned by the higher-wealth group, the investors, who are sending their money abroad, like banana-republic oligarchs do, and who might easily relocate themselves there too. 

On September 19th, the New York Times headlined “‘Crippling’ Energy Bills Force Europe’s Factories to Go Dark: Manufacturers are furloughing workers and shutting down lines because they can’t pay the gas and electric charges.” For example, a major employer in northern France, Arc International glass factory, doesn’t know whether they will survive: “Nicholas Hodler, the chief executive, surveyed the assembly line, shimmering blue with natural gas flames [gas that came from Russia and that now costs ten times as much as just a year ago]. For years, Arc had been powered by cheap energy that helped turn the company into the world’s largest producer of glass tableware. … But the impact of Russia’s abrupt cutoff of gas to Europe [forced by the sanctions] has doused the business with new risks. Energy prices have climbed so fast that Mr. Hodler has had to rewrite business forecasts six times in two months. Recently, he put a third of Arc’s 4,500 employees on partial furlough to save money. Four of the factory’s nine furnaces will be idled; the others will be switched from natural gas to diesel, a cheaper but more polluting fuel.” The “Green” Parties throughout Europe, such as in the persons of Germany’s Foreign Minister Annalena Baerbock, and Germany’s Minister for Economic Affairs and Climate Action Robert Habeck, had led the European movement against importing Russian fuels, and could turn out to have led Europe actually to increase its carbon footprint, if the end result turns out to be to switch to more coal and diesel fuels, as they now are doing.

It could not have happened without the leaderships both in America and in Europe, who are leading the way for Europe’s economies to decline, and for America’s to boom from this — attracting more and more investors, and their investments, into America, from the U.S. regime’s vassal-nations (such as Germany and France), especially in the EU and NATO (these new banana-republics). The beneficiaries of all this are not only America’s weapons-manufacturing firms, such as Lockheed Martin, and extraction firms such as ExxonMobil, that are growing because of the plunge in Europe that’s due to Europe’s cutting itself off from the cheap energy that it had formerly enjoyed. The future is opening up again, for investors in the United States. It’s come-one, come-all, to investors from Europe, and leaving everyone else in Europe simply to sink, if they can’t get out. 

NATO prolongs the Ukraine proxy war, and global havoc

With diplomacy thwarted, the US and its allies plan for “open-ended” military and economic warfare against Russia, no matter the costs at home and abroad.

(US Dept. of Defense)

By Aaron Maté

Source: Aaron Mate Substack

Russia has announced plans to mobilize an additional 300,000 troops for the war in Ukraine. In his speech unveiling the expanded war effort, Vladimir Putin vowed to achieve his main goal of the “liberation of Donbas,” and issued a thinly veiled nuclear threat in the process. The move comes days ahead of planned referendums in breakaway Ukrainian areas to formalize Russian annexation.

Russia’s escalation ensures that the fighting is entering an even more dangerous phase. While Russia bears legal and moral responsibility for its invasion, recent developments underscore that NATO leaders have shunned opportunities to prevent further catastrophe and chosen instead to fuel it.

Putin’s announcement comes just after the Ukrainian military’s routing of Russian forces from Kharkiv, which relied extensively on US planning, weaponry and intelligence, sparked triumphant declarations that the tide has turned.

According to The Atlantic’s Anne Applebaum, “Americans and Europeans need to prepare for a Ukrainian victory,” one so overwhelming that it may well bring “about the end of Putin’s regime.”

Beyond the chorus of emboldened neoconservatives, Western officials are less sanguine.

“Certainly it’s a military setback” for Russia, a US official said of the Kharkiv retreat to the Washington Post. “I don’t know if I could call it a major strategic loss at this point.” Germany’s defense chief, General Eberhard Zorn, said that while Ukraine “can win back places or individual areas of the frontlines,” overall, its forces can “not push Russia back over a broad front.”

Whether or not it marked a major strategic loss for Russia, the battle in Kharkiv is already a major victory for NATO leaders seeking to prolong their proxy war in Ukraine and economic warfare next door.

Ukraine’s expulsion of Russian forces in the northeast, the New York Times reports, has “amplified voices in the West demanding that more weapons be sent to Ukraine so that it could win.”

“Despite Ukrainian forces’ startling gains in the war against Russia,” the Washington Post adds, “the Biden administration anticipates months of intense fighting with wins and losses for each side, spurring U.S. plans for an open-ended campaign with no prospect for a negotiated end in sight.”

As has been apparent since the Ukraine crisis erupted, US planning for open-ended proxy warfare against Russia has led it to sabotage any prospect of a negotiated end.

The US rejection of diplomacy around Ukraine has been newly substantiated by former White House Russia expert Fiona Hill. Citing “multiple former senior U.S. officials,” Hill reports that in April of this year “Russian and Ukrainian negotiators appeared to have tentatively agreed on the outlines of a negotiated interim settlement.” Under this framework, Russia would withdraw to its pre-invasion position, while Ukraine would pledge not to join NATO “and instead receive security guarantees from a number of countries.”

In confirming that US officials were aware of this tentative agreement, Hill bolsters previous news that Washington’s junior partner in London was enlisted to thwart it. As Ukrainian media reported, citing sources close to Ukrainian President Volodymyr Zelensky, UK Prime Minister Boris Johnson traveled to Kiev in April and relayed the message that Russia “should be pressured, not negotiated with.” Johnson also informed Zelensky that “even if Ukraine is ready to sign some agreements on [security] guarantees with Putin,” his Western patrons “are not.” The talks promptly collapsed.

In his speech announcing the expanded war effort, Putin invoked this episode. After the invasion began, he said, Ukrainian officials “reacted very positively to our proposals… After certain compromises were reached, Kyiv was actually given a direct order to disrupt all agreements.”

Having undermined the prospect of a negotiated peace in the war’s early weeks, proxy warriors in Washington are openly celebrating their success.

“I like the structural path we’re on here,” Republican Senator Lindsey Graham recently declared. “As long as we help Ukraine with the weapons they need and the economic support, they will fight to the last person.”

Graham’s avowed willingness to expend every “last person” in Ukraine to fight Russia is in line with a broader US strategy that views the entire world as subordinate to its war aims. As the Washington Post reported in June, the White House is willing to “countenance even a global recession and mounting hunger” in order to hand Russia a costly defeat. In Ukraine, this now means also countenancing the threat of nuclear disaster, as the crisis surrounding the Zaporizhzhia nuclear power plant has laid bare.

The prevailing willingness to sacrifice civilian well-being extends to the US public, as National Security Advisor Jake Sullivan has newly made clear. Appearing at the Aspen Security Conference, Sullivan was asked if he is worried about the “American people’s staying power” on the Ukraine proxy war, amid “criticism that we’re spending billions and billions to support Ukraine, and not spending it here.”

 “Fundamentally not,” Sullivan responded. “It’s very important for Putin to understand what exactly he’s up against from the point of view of the United States’ staying power.” That staying power, Sullivan explained, was cemented in the $40 billion war funding measure overwhelmingly approved by Congress (including every self-identified progressive Democrat) in May.

“That can go on, just on the basis of what we have already had allocated to us and resources for a considerable period of time,” Sullivan vowed. “And then, I strongly believe that there will be bipartisan support in the Congress to re-up those resources should it become necessary.”

To policymakers like Sullivan, there is not only an endless pool of money to “re-up” the war, but a “fundamentally” indifferent posture toward the taxpayers footing the bill.

Despite Biden’s reported scolding of Defense Secretary Lloyd Austin for admitting that the US goal in Ukraine is to leave Russia “weakened,” Sullivan – speaking before a friendly Beltway crowd — also forgot to stick to the script.

The US “strategic objective” in Ukraine, Sullivan explained, is to “ensure that Russia’s invasion of Ukraine… is a strategic failure for Putin,” and that “Russia pay a longer-term price in terms of the elements of its national power.” This would teach a “lesson,” he added, “to would-be aggressors elsewhere.”

By “would-be aggressors elsewhere”, Sullivan naturally precludes the US and its allies, whose aggression is not only permitted but promoted under the US-led “rules-based international order.”

President Biden has made that clear by abandoning his pledge to make Saudi Arabia a “pariah” state, notwithstanding its murderous (US-backed) aggression in Yemen. The regular aggression by US ally Israel against Gaza and Syria also continues unabated. The United Nations just reported that an Israeli strike on the Damascus international airport in June – one of hundreds of Israeli bombings on Syria that go largely ignored — “led to considerable damage to infrastructure” and “meant the suspension of U.N. deliveries of humanitarian assistance” to Syrians in need for nearly two weeks. As of this writing, the latest Israeli strike killed five Syrian soldiers, eliciting no Western media and political protest. It is more accurate to describe Israeli aggression on Syria as a joint Israeli-US effort, given that the US reviews and approves the strikes.

Allied NATO leaders are also vocally countenancing the Ukraine proxy war’s costs on their domestic populations. In response to the European sanctions, Russia has now halted gas deliveries to the EU via the key Nord Stream 1 pipeline. Having previously relied on Russia for close to 40 percent of its gas needs, European industries are facing layoffs, factory closures, and higher energy bills that “are pushing consumers to near poverty,” the Financial Times reports.

“People want to end the war because they cannot bear the consequences, the costs,” the EU’s Josep Borell observed this month. While ending the war might appeal to some, it does not interest the EU’s top diplomat. “This mentality must be overcome,” Borell declared. “The offensive on the northeastern front helps with that.”

Europe, NATO chief Jens Stoltenberg recently wrote, may even face “civil unrest,” as economies contract and temperatures drop, but “for Ukraine’s future and for ours, we must prepare for the winter war and stay the course.”

“No matter what my German voters think, I want to deliver to the people of Ukraine,” Germany’s Foreign Minister Annalena Baerbock told a conference in Prague last month. During the upcoming winter, Baerbock acknowledged, “we will be challenged as democratic politicians. People will go in the street and say ‘We cannot pay our energy prices’.” While pledging to help people “with social measures,” Baerbock insisted that the European Union’s sanctions on Russia will remain. “The sanctions will stay also in wintertime, even if it gets really tough for politicians,” she said.

Whereas Western leaders appear confident they can manage civil unrest at home, they face additional resistance abroad. In Africa, a leaked report from the European Union’s envoy to the continent warns that African nations are blaming the EU’s Russia sanctions for food shortages. The report also cautions that “the EU is seen as fueling the conflict,” in Ukraine, “not as a peace facilitator.”

Rather than address these African concerns, the envoy’s office proposes a “more transactional… approach” in which the EU makes “clear” that its “willingness” to “maintain higher levels” of foreign aid “will depend on working based on common values and a joint vision,” – in short, on Africa falling in line.

That is undoubtedly the US policy, as UN Ambassador Linda Thomas-Greenfield made clear last month. After promising a “listening tour,” Thomas-Greenfield instead came to Africa with a dictate and an outright threat. “Countries can buy Russian agricultural products, including fertilizer and wheat,” she decreed. But “if a country decides to engage with Russia” and break US sanctions, “they stand the chance of having actions taken against them.” That Africa faces a food security crisis, with hundreds of millions going hungry, is apparently of lower importance.

While Western sanctions on Russia wreak havoc worldwide, the architects in Washington seem only perturbed by their failure, so far, to inflict the intended levels of suffering on Russian civilians. “We were expecting” that US sanctions “would totally crater the Russian economy” by now, a disappointed senior US official told CNN.

Other US officials are leaving room for hope. “There’s going to be long-term damage done to the Russian economy and to generations of Russians as a result of this,” CIA Director William Burns told a cybersecurity conference this month. Burns’ long-term forecast of harming “generations of Russians” is based on extensive planning. As one US official explained it to CNN, when the sanctions were designed, Biden officials not only “wanted to keep pressure on Russia over the long term as it waged war on Ukraine,” but also “wanted to degrade Russia’s economic and industrial capabilities.” Accordingly, “we’ve always seen this as a long-term game.”

The “long-term game” of trying to destroy Russia’s economy and immiserate “generations” of its citizens is accompanied by increasing plans for a long-term fight. The Biden administration plans to formally name the US military mission in Ukraine – such as in prior campaigns like Operation Desert Storm — while also appointing a general to oversee the effort. The naming, the Wall Street Journal observes, is “significant bureaucratically, as it typically entails long-term, dedicated funding.”

The US plan for a long-term military and economic campaign against Russia is being implemented despite the awareness that Ukraine could face far worse.

“Some American officials express concern that the most dangerous moments are yet to come,” the New York Times reports. To date, “Putin has avoided escalating the war in ways that have, at times, baffled Western officials.” Unlike US military campaigns in Iraq, Russia “has made only limited attempts to destroy critical infrastructure or to target Ukrainian government buildings.”

“The current moment draws attention to a tension that underlies America’s strategy for the war,” the Washington Post observes, “as officials channel massive military support to Ukraine, fueling a war with global consequences, while attempting to remain agnostic about when and how Kyiv might strike a deal to end it.”

These rare admissions not only contradict the typical portrayal of a genocidal Russia that is used to justify the proxy war, but capture the underlying policy driving it. More than six months in, US officials are aware that Russia has “avoided escalating the war” and targeting “critical infrastructure,” – to the point where these same officials are “baffled” by Russian restraint. Despite this, their policy centers on “fueling” this same war, while remaining “agnostic” about ending it.

War being fluid – and US-led military support for Ukraine ever-expanding – it is of course possible that Ukraine will continue to defy expectations and drive out the invading Russian forces.

What the latest developments on and off the battlefield make undoubtedly clear is that NATO states are willing to use Ukraine for as long as it takes to achieve the stated aim of leaving Russia “weakened” or even achieving regime change, no matter the damage knowingly inflicted on Ukrainians, Russians, the Global South, and their own citizens.

Europe Commits Suicide-By-Sanctions

Relentless Ukraine reporting helps conceal other conflicts

By Ron Paul

Source: Eurasia Review

A Swiss billboard is making the rounds on social media depicting a young woman on the telephone. The caption reads, “Does the neighbor heat the apartment to over 19 degrees (66F)? Please inform us.” While the Swiss government has dismissed the poster as a fake, the penalties Swiss citizens face for daring to warm their homes are very real. According to the Swiss newspaper Blick, those who violate the 66 degree heating limit could face as many as three years in prison!

Prison time for heating your home? In the “free” world? How is it possible in 2022, when Switzerland and the rest of the political west have achieved the greatest economic success in history, that the European continent faces a winter like something out of the dark ages?

Sanctions.

While long promoted – often by those opposed to war – as a less destructive alternative to war, sanctions are in reality acts of war. And as we know with interventionism and war, the result is often unintended consequences and even blowback.

European sanctions against Russia over its invasion of Ukraine earlier this year will likely go down in history as a prime example of how sanctions can result in unintended consequences. While seeking to punish Russia by cutting off gas and oil imports, European Union politicians forgot that Europe is completely dependent on Russian energy supplies and that the only people to suffer if those imports are shut down are the Europeans themselves.

The Russians simply pivoted to the south and east and found plenty of new buyers in China, India, and elsewhere. In fact, Russia’s state-run Gazprom energy company has reported that its profits have increased by 100 percent in the first half of this year.

Russia is getting rich while Europeans are facing a freezing winter and economic collapse. All because of the false belief that sanctions are a cost-free way to force other countries to do what you want them to do.

What happens when the people see dumb government policies making energy bills skyrocket as the economy grounds to a halt? They become desperate and take to the streets in protest.

This weekend thousands of Austrians took to the streets in a “Freedom Rally” to demand an end to sanctions and the opening of Nord Stream II, the gas pipeline on the verge of opening earlier this year. Last week an estimated 100,000 Czechs took to the streets of Prague to protest NATO and EU policy. In France, the “Yellow Vests” are back in the streets protesting the destruction of their economy in the name of “defeating” Russia in Ukraine. In Germany, Serbia, and elsewhere, protests are gearing up.

Even the Washington Post was forced to admit that sanctions on Russia are not having the intended effect. In an article yesterday, the paper worries that sanctions are inflicting “collateral damage in Russia and beyond, potentially even hurting the very countries that impose them. Some even worried that the sanctions intended to deter and weaken Putin could end up emboldening and strengthening him.”

This is all predictable. Sanctions kill. Sometimes they kill innocents in the country targeted for destruction and sometimes they kill innocents in the country imposing them. The solution, as always, is non-intervention. No sanctions, no “color revolutions,” no meddling. It’s really that simple.

An Engineered Food and Poverty Crisis to Secure Continued US Dominance 

By Colin Todhunter

Source: Dissident Voice

In March 2022, UN Secretary-General Antonio Guterres warned of a “hurricane of hunger and a meltdown of the global food system” in the wake of the crisis in Ukraine.

Guterres said food, fuel and fertiliser prices were skyrocketing with supply chains being disrupted and added this is hitting the poorest the hardest and planting the seeds for political instability and unrest around the globe.

According to the International Panel of Experts on Sustainable Food Systems, there is currently sufficient food and no risk of global food supply shortages.

We see an abundance of food but skyrocketing prices. The issue is not food shortage but speculation on food commodities and the manipulation of an inherently flawed global food system that serves the interests of corporate agribusiness traders and suppliers of inputs at the expense of people’s needs and genuine food security.

The war in Ukraine is a geopolitical trade and energy conflict. It is largely about the US engaging in a proxy war against Russia and Europe by attempting to separate Europe from Russia and imposing sanctions on Russia to harm Europe and make it further dependent on the US.

Economist Professor Michael Hudson recently stated that ultimately the war is against Europe and Germany. The purpose of the sanctions is to prevent Europe and other allies from increasing their trade and investment with Russia and China.

Neoliberal policies since the 1980s have hollowed out the US economy. With its productive base severely weakened, the only way for the US to maintain hegemony is to undermine China and Russia and weaken Europe.

Hudson says that, beginning a year ago, Biden and the US neocons attempted to block Nord Stream 2 and all (energy) trade with Russia so that the US could monopolise it itself.

Despite the ‘green agenda’ currently being pushed, the US still relies on fossil fuel-based energy to project its power abroad. Even as Russia and China move away from the dollar, the control and pricing of oil and gas (and resulting debt) in dollars remains key to US attempts to retain hegemony.

The US knew beforehand how sanctions on Russia would play out. They would serve to divide the world into two blocks and fuel a new cold war with the US and Europe on one side with China and Russia being the two main countries on the other.

US policy makers knew Europe would be devastated by higher energy and food prices and food importing countries in the Global South would suffer due to rising costs.

It is not the first time the US has engineered a major crisis to maintain global hegemony and a spike in key commodity prices that effectively trap countries into dependency and debt.

In 2009, Andrew Gavin Marshall described how in 1973 – not long after coming off the gold standard – Henry Kissinger was integral to manipulating events in the Middle East (the Arab-Israeli war and the ‘energy crisis’). This served to continue global hegemony for the US, which had virtually bankrupted itself due to its war in Vietnam and had been threatened by the economic rise of Germany and Japan.

Kissinger helped secure huge OPEC oil price rises and thus sufficient profits for Anglo-American oil companies that had over-leveraged themselves in North Sea oil. He also cemented the petrodollar system with the Saudis and subsequently placed African nations, which had embarked on a path of (oil-based) industrialisation, on a treadmill of dependency and debt due to the spike in oil prices.

It is widely believed that the high-priced oil policy was aimed at hurting Europe, Japan and the developing world.

Today, the US is again waging a war on vast swathes of humanity, whose impoverishment is intended to ensure they remain dependent on the US and the financial institutions it uses to create dependency and indebtedness – the World Bank and IMF.

Hundreds of millions will experience (are experiencing) poverty and hunger due to US policy. These people (the ones that the US and Pfizer et al supposedly cared so much about and wanted to get a jab into each of their arms) are regarded with contempt and collateral damage in the great geopolitical game.

Contrary to what many believe, the US has not miscalculated the outcome of the sanctions placed on Russia. Michael Hudson notes energy prices are increasing, benefiting US oil companies and US balance of payments as an energy exporter. Moreover, by sanctioning Russia, the aim is to curtail Russian exports (of wheat and gas used for fertiliser production) and for agricultural commodity prices to therefore increase. This too will also benefit the US as an agricultural exporter.

This is how the US seeks to maintain dominance over other countries.

Current policies are designed to create a food and debt crisis for poorer nations especially. The US can use this debt crisis to force countries to continue privatising and selling off their public assets in order to service the debts to pay for the higher oil and food imports.

This imperialist strategy comes on the back of ‘COVID relief’ loans which have served a similar purpose. In 2021, an Oxfam review of IMF COVID-19 loans showed that 33 African countries were encouraged to pursue austerity policies. The world’s poorest countries are due to pay $43 billion in debt repayments in 2022, which could otherwise cover the costs of their food imports.

Oxfam and Development Finance International have also revealed that 43 out of 55 African Union member states face public expenditure cuts totalling $183 billion over the next five years.

The closure of the world economy in March 2020 (‘lockdown’) served to trigger an unprecedented process of global indebtedness. Conditionalities mean national governments will have to capitulate to the demands of Western financial institutions. These debts are largely dollar-denominated, helping to strengthen the US dollar and US leverage over countries.

The US is creating a new world order and needs to ensure much of the Global South remains in its orbit of influence rather than ending up in the Russian and especially Chinese camp and its belt road initiative for economic prosperity.

Post-COVID, this is what the war in Ukraine, sanctions on Russia and the engineered food and energy crisis are really about.

Back in 2014, Michael Hudson stated that the US has been able to dominate most of the Global South through agriculture and control of the food supply. The World Bank’s geopolitical lending strategy has transformed countries into food deficit areas by convincing them to grow cash crops – plantation export crops – not to feed themselves with their own food crops.

The oil sector and agribusiness have been joined at the hip as part of US geopolitical strategy.

The dominant notion of ‘food security’ promoted by global agribusiness players like Cargill, Archer Daniel Midland, Bunge and Louis Dreyfus and supported by the World Bank is based on the ability of people and nations to purchase food. It has nothing to do with self-sufficiency and everything to do with global markets and supply chains controlled by giant agribusiness players.

Along with oil, the control of global agriculture has been a linchpin of US geopolitical strategy for many decades. The Green Revolution was exported courtesy of oil-rich interests and poorer nations adopted agri-capital’s chemical- and oil-dependent model of agriculture that required loans for inputs and related infrastructure development.

It entailed trapping nations into a globalised food system that relies on export commodity mono-cropping to earn foreign exchange linked to sovereign dollar-denominated debt repayment and World Bank/IMF ‘structural adjustment’ directives. What we have seen has been the transformation of many countries from food self-sufficiency into food deficit areas.

And what we have also seen is countries being placed on commodity crop production treadmills. The need for foreign currency (US dollars) to buy oil and food entrenches the need to increase cash crop production for exports.

The World Trade Organization’s Agreement on Agriculture (AoA) set out the trade regime necessary for this type of corporate dependency that masquerades as ‘global food security’.

This is explained in a July 2022 report by Navdanya International – Sowing Hunger, Reaping Profits – A Food Crisis by Design – which notes international trade laws and trade liberalisation has benefited large agribusiness and continue to piggyback off the implementation of the Green Revolution.

The report states that US lobby and trade negotiations were headed by former Cargill Investors Service CEO and Goldman Sachs executive – Dan Amstutz – who in 1988 was appointed chief negotiator for the Uruguay round of GATT by Ronald Reagan. This helped to enshrine the interests of US agribusiness into the new rules that would govern the global trade of commodities and subsequent waves of industrial agriculture expansion.

The AoA removed protection of farmers from global market prices and fluctuations. At the same time, exceptions were made for the US and the EU to continue subsidising their agriculture to the advantage of large agribusiness.

Navdanya notes:

With the removal of state tariff protections and subsidies, small farmers were left destitute. The result has been a disparity in what farmers earn for what they produce, versus what consumers pay, with farmers earning less and consumers paying more as agribusiness middlemen take the biggest cut.

‘Food security’ has led to the dismantling of food sovereignty and food self-sufficiency for the sake of global market integration and corporate power.

We need look no further than India to see this in action. The now repealed recent farm legislation in India was aimed at giving the country the ‘shock therapy’ of neoliberalism that other countries have experienced.

The ‘liberalising’ legislation was in part aimed at benefiting US agribusiness interests and trapping India into food insecurity by compelling the country to eradicate its food buffer stocks – so vital to the nation’s food security – and then bid for food on a volatile global market from agribusiness traders with its foreign reserves.

The Indian government was only prevented from following this route by the massive, year-long farmer protest that occurred.

The current crisis is also being fuelled by speculation. Navdanya cites an investigation by Lighthouse Reports and The Wire to show how speculation by investment firms, banks and hedge funds on agricultural commodities are profiting off rising food prices. Commodity future prices are no longer linked to actual supply and demand in the market but are based purely on speculation.

Archer Daniels Midland, Bunge, Cargill and Louis Dreyfus and investment funds like Black Rock and Vanguard continue to make huge financial killings, resulting in the price of bread almost doubling in some poorer countries.

The cynical ‘solution’ promoted by global agribusiness to the current food crisis is to urge farmers to produce more and seek better yields as if the crisis is that of underproduction. It means more chemical inputs, more genetic engineering techniques and suchlike, placing more farmers in debt and trapped in dependency.

It is the same old industry lie that the world will starve without its products and requires more of them. The reality is that the world is facing hunger and rising food prices because of the system big agribusiness has instituted.

And it is the same old story – pushing out new technologies in search of a problem and then using crises as justification for their rollout while ignoring the underlying reasons for such crises.

Navdanya sets out possible solutions to the current situation based on principles of agroecology, short supply lines, food sovereignty and economic democracy – policies that have been described at length in many articles and official reports over the years.

As for fighting back against the onslaught on ordinary people’s living standards, support is gathering among the labour movement in places like the UK. Rail union leader Mick Lynch is calling for a working class movement based on solidarity and class consciousness to fight back against a billionaire class that is acutely aware of its own class interests.

For too long, ‘class’ has been absent from mainstream political discourse. It is only through organised, united protest that ordinary people will have any chance of meaningful impact against the new world order of tyrannical authoritarianism and the devastating attacks on ordinary people’s rights, livelihoods and standards of living that we are witnessing.

The United States Does Not Have an Economy

By Paul Craig Roberts

Source: PaulCraigRoberts.org

The US financial sector has long looted other countries.  A number of participants have described the process.  First a country is enticed with bribes to the leaders to take out loans that cannot be serviced or repaid.  Then in comes the IMF. Austerity is imposed on the population.  Public services and employment are cut to free resources for debt service, and public assets are sold to repay the loan.  Living standards fall, and US corporations take over the country’s economy.

As foreign governments, having experienced or witnessed the economic carnage and fearing accountability, are less willing to be bribed into indebting their countries, American finance is now applying this technique to Americans. Contrary to the narrative in the financial press, the Federal Reserve is not raising interest rates in order to fight inflation.  It is ludicrous to think that a three-quarters of one percent rise in a very low interest rate is going to have any impact on a 9.1% rate of consumer inflation or that speculation that the Federal Reserve has in mind another three-quarters of one percent possibly followed by one half of one percent comprise an anti-inflation policy.  If all these increases occur, it still leaves the interest rate below the inflation rate.

Moreover, as I have previously explained, the inflation is not monetary.  The higher prices are the result of supply disruptions caused by Washington’s Covid lockdowns and Russian sanctions.  Production was stopped and supply chains are broken.  

The Federal Reserve’s rise in interest rates is just a continuation of its policy of concentrating income and wealth in the hands of the One Percent.  Quantitative Easing was the cloak for the Federal Reserve to print $8.2 trillion in new money which was directed or found its way into the prices of stocks and bonds, thus enriching the small number who own most of these financial instruments.  Having maxed out this avenue of wealth concentration, the Federal Reserve is now raising interest rates in order to drive up mortgage costs to aspiring home owners.  The Federal Reserve is driving individuals out of the housing market in order to free up properties for “private equity” firms to purchase homes for their rental values.  That private equity firms see rental income from the existing stock of houses as the best investment opportunity tells us that the US economy has played out.  When investment goes into existing assets, not into producing new assets, the economy ceases to grow.

The Obama regimes policy of bailing out the financial fraudsters responsible for the 2008 crash while foreclosing on their victims, reduced American homeownership from 70% to 63 percent. The Urban Institute predicts further declines. Today homeowners’ equity has declined from 85% after World War II to one-third, leaving two-thirds of homeowner equity in the hands of creditors.  This makes it completely clear that a financialized economy indebts the people for the sake of rentier income to the One Percent.  Indeed, the financialized economy created by the Federal Reserve has reimposed a class system akin to the landed British aristocracy that was overthrown.  Indeed, we have an economically far worst class system.  The landed British aristocrats produced food that fed the nation.  The American class system produces interest and fees for the financial system.

As Michael Hudson has shown us, a no-growth economy is the end result of a financialized economy.  A financialized economy is one in which consumer income is diverted by debt expansion away from the purchase of new goods and services into debt service and fees–interest on mortgages, car loans, credit card debt, student loan debt.  With such a large share of household income spent on debt service, little is left for driving the economy forward.

If American economists were capable of escaping from their neoliberal junk economics, they would realize that “the world’s largest economy” they attribute to the United States is total fiction.  The fact is that the United States does not have an economy.  Corporations driven by Wall Street located American manufacturing in Asia so that the One Percent could benefit from higher profits from lower labor costs, while the deserted city and states had to sell their income streams, such as Chicago’s parking meter revenues for 75 years, to foreigners for one lump sum payment to solve one year’s budget crisis.  

The offshoring of American production, carried out under the cloak of “globalism,” destroyed the American economy and the tax bases of cities and states.  While the real economy declines, the Democrat Party, seeking permanent power, has imposed a policy of open borders for immigrant-invaders.  How are these millions of peoples to support themselves in an economy whose manufacturing has been moved abroad?  How can a population, deserted by American corporations, that is experiencing debt deflation absorb the costs of support and social infrastructure for tens of millions of third world immigrant-invaders?

You will never hear it from the whores in the financial press, but the United States is on the precipice of economic and social collapse.  And what are the fools in Washington doing?  The idiots are ginning up wars with Russia, China, and Iran.