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Eastern Europe – The World’s Last Underachiever

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25 years ago, the Russian historical empire melted down. Although often underreported, this also marked the end of alternative society in Europe. Collapse of the II world, made the 3rd way (of Yugoslavia and further, beyond Europe – globally, of the Nonaligned Movement) obsolete.

That 9/11 was a moment when the end of history rested upon all of us, the day when the world became flat. The EU entered East, but only as a ‘stalking horse’ of NATO. No surprise that Eastern Europe –following the slaughter of its pivot, Yugoslavia – has soon after abandoned its identity quest, and capitulated. Its final civilizational defeat came along: the Eastern Europe’s peoples, primarily Slavs, have silently handed over their most important debates – that of Slavism, anti-fascism and of own identity – solely to the recuperating Russophone Europe.

Terrified and rarified underachievers

Is today’s Eastern Europe a classic case of indirect rule? Is that a deep imperial periphery of nominally independent native rulers, while in reality the true power holder resides outside, although is domestically supported by a dense web of NGOs, multinational corporations and locally handpicked ‘elites’?

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Everything in between Central Europe and Russia is Eastern Europe, rather a historic novelty on the political map of Europe (see four maps above). Very formation of the Atlantic Europe’s present shape dates back to 14th–15th century, of Central Europe to the mid-late 19th century, while a contemporary Eastern Europe only started emerging between the end of WWI and the collapse of the Soviet Union – meaning, less than 100 years in best cases, slightly over two decades in the most cases. No wonder that the dominant political culture of the Eastern Europeans resonates residual fears and reflects deeply insecure small nations. Captive and restive, they are short in territorial depth, in demographic projection, in natural resources and in a direct access to open (warm) seas. After all, these are short in historio-cultural verticals, and in the bigger picture-driven long-term policies. They are exercising the nationhood and sovereignty from quite a recently, thus, too often uncertain over the side and page of history. Therefore, they are often dismissive, hectic and suspectful, nearly neuralgic and xenophobic, with frequent overtones.

The creation of a nation-state (on linguistic grounds) in the Atlantic, Scandinavian and Central Europe was relatively a success-story. However, in Eastern Europe it repeatedly suffered setbacks, culminating in the Balkans, Caucasus and the Middle East, but also remains evident in the central or Baltic part of Eastern Europe.

Above statement might come as a shock for many. Why? For the last 25 years, our reporting on Eastern Europe was rather a matter of faith than a reflection of the empirical reality. This ‘rhetoric’ was dominated by fragmented intellectual trends that are more cultural (e.g. poetry, paintings, film, etc.) than coherently economic and geo-political in focus as they should be. How one defines a challenge largely determines the response – effectively points out Brzezinski. Hence, the arts will always elaborate on emotions, science will search for and examine the facts.

If the front of Atlantic-Central Europe lately suffered (an economic) problem which has been diagnosed as a distributional and compositional, than who and when is holistically and scientifically to examine the Eastern-Rusophone Europe and its burning geo-economic (distributional, compositional), socio-political/ideological (space-time in history) and geopolitical (logical and areal) problem? Where is a serious research on that?

If the equality of outcome (income) was a communist egalitarian dogma, is the belief in equality of opportunity a tangible reality offered to Eastern Europe or just a deceiving utopia sold to the conquered, plundered, ridiculed and cannibalized countries in transition?

What is the current standing of Eastern Europe – state of its economy, the health of its society and the efficiency of its governance?

By contrasting and comparing available HDI data (UN DP’s Human Development Index) and all relevant WB, OECD, UNCTAD, ILO and WHO socio-economic and health indexes including the demographic trends of last two decades, we can easily spot a considerable green, economic and socio-human growth in Asia, in Latin America and moderate growth elsewhere. The single trend of negative growth (incl. the suicide and functional illiteracy figures) comparable by its duration and severity to this of Eastern Europe, is situated only in the sub-Saharan Africa (precisely the CHAD-lake region and partially between Grand lakes and Horn of Africa). Further on, recent generational accounting figures illuminate a highly disturbing future prospect for the youth of Eastern Europe. Neither their economic performance nor birth rates would sustain the financial burden left for the future by the present, irresponsible and defeatist, generation.

Ergo, euphemisms such as countries in transition or new Europe cannot hide a disconsolate fact that Eastern Europe has been treated for 25 years as defeated belligerent, as spoils of war which the West won in its war against communist Russia.[1]

It concludes that (self-)fragmented, deindustrialized, rapidly aged rarified and depopulated, (and de-Slavicized) Eastern Europe is probably the least influential region of the world – one of the very few underachievers. Obediently submissive and therefore, rigid in dynamic environment of the promising 21st century, Eastern Europeans are among last remaining passive downloaders and slow-receivers on the otherwise blossoming stage of the world’s creativity, politics and economy.[2]

East does not exercise its political sovereignty (gone with the EU), its military sovereignty (gone with the NATO), its economic and monetary sovereignty (gone with the massive domestic de-industrialization ‘preached’ by the IMF, EBRD, EIB and eventually ECB),[3]and its financial sovereignty (gone by full penetration of German, Austrian and Swedish banks).[4]Those national currencies still existing in Eastern Europe lost – for already long ago – the vital substance: their anthropological and economic function.

Most of the Eastern European states do not control a single commercial bank on their territory.[5]East does not control its own narrative or (interpretation of) history: Due to the massive penetration of Central Europe, East grossly relativized, trivialized and silenced its own past and present anti-fascism. Additionally, this region does not effectively control its media space. Media there (of too-often dubious orientation and ownership) is discouraging, disorienting and silencing any sense of national pride, influence over destiny direction and to it related calls for self-(re)assessment.

East is sharply aged and depopulated –the worst of its kind ever – which in return will make any future prospect of a full and decisive generational interval simply impossible.[6]Honduras-ization of Eastern Europe is full and complete.[7]If the post-WWII Soviet occupation of Eastern Europe was overt and brutal, this one is tacit but subversive and deeply corrosive.[8]

East between Ukrainization and Pakistanization

It is worth reminding that the NATO remains to be an instrument of the US physical, military presence in Europe. Or, as Lord Ismay defined it in 1949: ‘to keep the Russians out, the Americans in, and the Germans down’. The fact that the US remained in Western Germany, and that the Soviet Army pulled out from Eastern Germany did not mean ‘democratization’ or ‘transition’. It represented a direct military defeat of the Gorbachev Russia in the duel over the core sectors of Central and Eastern Europe. As direct spoils of war, DDR disappeared from the political map of Europe being absorbed by Western Germany, while the American Army still resides in unified Germany.[9] In fact, more than half of the US 75 major overseas military bases are situated in Europe. Up to this day, Germany hosts 25 of them.  

Admittedly, by the early 1990s, the ‘security hole’– Eastern Europe, has been approached in multifold fashion: Besides the (pre-Maastricht EC and post-Maastricht) EU and NATO, there was the Council of Europe, the CSCE (after the 1993 Budapest summit, OSCE), the EBRD and EIB. All of them were sending the political, economic, human dimension, commercial signals, assistance and expertise.[10]These moves were making both sides very nervous; Russia becoming assertive (on its former peripheries) and Eastern Europe defiantly dismissive. Until this very day, each of them is portraying the NATO enterprise as the central security consideration: One as a must-go, and another as a no-go.

No wonder that the absolute pivot of Eastern Europe – Ukraine, is a grand hostage of that very dilemma: Between the eastern pan-Slavic hegemony and western ‘imperialism of free market’.[11]For Ukraine, Russia is a geographic, socio-historic, cultural and linguistic reality. These days, this reality is far less reflected upon than the seducing, but distant Euro-Atlantic club. Ukraine for Russia is more than a lame western-flank’ geopolitical pivot, or to say, the first collateral in the infamous policy of containment that the West had continuously pursued against Russia ever since the 18th century. For Moscow, Kiev is an emotional place – an indispensable bond of historio-civilizational attachment – something that makes and sustains Russia both Christian and European. Putin clearly redlined it: Sudden annexation of Crimea (return to its pre-1954 status) was an unpleasant and humiliating surprise that brings a lot of foreign policy hangover for both the NATO and EU.

Thus drifting chopped off and away, a failed state beyond rehabilitation, Ukraine itself is a prisoner of this domesticated security drama. Yet again, the false dilemma so tragically imploded within this blue state, of a 50:50 polarized population, over the question where the country belongs – in space, time and side of history. Conclusively, Eastern Europe is further twisting, while gradually combusted between Ukrainization and Pakistanization.[12] The rest of Europe is already shifting the costs of its own foreign policy journey by ‘fracking’ its households with a considerably higher energy bills.

In short, Atlantic Europe is a political powerhouse, with two of three European nuclear powers and 2 out of five permanent members of the UN Security Council, P-5. Central Europe is an economic powerhouse, Russophone Europe is an energy powerhouse, Scandinavian Europe is all of that a bit, and Eastern Europe is none of it.

 

*   All displayed maps per the author’s idea made by Anneliese Gattringer.

References:

  1. Bajrektarević, A. (2013), Future of Europe (Of Lisbon and Generational Interval), EU Journal Europe’s World, Brussels
  2. Brzezinski, Z. (1997), The Grand Chessboard, Basic Books (Perseus);
  3. Fukuyama, F. (2012), The Future of History, Foreign Affairs Magazine 91(1) 2012
  4. Friedman, G. (2009), The Next 100 Years, Anchor Books/Random House NY;
  5. Ferguson, N. (2005), Colossus – The Rise and Fall of the American Empire, Penguin Books (page 255)
  6. Bajrektarević, A. (2005), Green/Policy Paper Submitted to the closing plenary of the Ministerial (Chairmanship summarizing the recommendations and conclusions of the OSCE Ministerial Summit Prague 2005), OSCE Documents/EEA 2005/05/14857/En
  7. Clark, C. (2013), The Sleepwalkers: How Europe Went to War in 1914, HarperCollins Publishers
  8. Eco, U. (2001), Eternal Fascism: 14 way of looking at a Blackshirt, Five Moral Pieces – Essays (orig. Cinque Scritti Morali, 1997),Essay first published in the NY Review of Books, 22 VI 1995 (pp.12-15)
  9. Stiglitz, J.E. (2012), The Price of Inequality, Penguin Economics
  10. Wallerstein, I. (1999), The End of the World as We Know it: Social Science for the XXI century, Minneapolis: University of Minnesota Press
  11. OECD (2014), Society at a Glance 2014 – The Crisis and its Aftermath (OECD Social Indicators), OECD Paris Publications
  12. World Bank (2014), World Development Report 2014: Risk and Opportunity – Managing Risk for Development, WB Publications
  13. Mead, W.R. (2014), The Return of Geopolitics – The Revenge of the Revisionist Powers, Foreign Affairs Magazine 93(2) 2014
  14. Greco, T.H. (2009), The End of Money and the Future of Civilization, Chelsea Green Publishing
  15. Serfaty, S. (2014) Why we need to be patient with Russia, Europe’s World – the EU Foreign Policy Journal, Brussels (page 73)
  16. Bajrektarević, A. (2013), Multiculturalism is D(r)ead in Europe – MENA Oil and the (hidden) political prize Europe pays for it, Nordic Page, Oslo Norway
  17. Ikenberry, G.J. (2014), The Illusion of Geopolitics, Foreign Affairs Magazine 93(3) 2014
  18. Kagan, R. (2004), Of Paradise and Power, Vintage Books (page 85)

 


[1] A sharp drop in LE (life expectancy) in Russia, from age 72 to 59, is something faced only by nations at war. The evidence that Russia has suffered such a steep decline, unreversed ever since the collapse of the Soviet Union, is unprecedented in a peace-time history of any industrialized nation. Although not so alarming like in the post-SU Russia, the rest of post-Soviet republics and Eastern Europe closely follow the same LE pattern – not to mention devastating birth rates, brain drain and other demographic data. E.g. the projected LE of the today’s born Berliner is around 100 years, while of Muscovite is only 67 years. Simply, the East is unable to (re-)produce its own life. Or, once it is conceived, to keep (the best of) that life at home. Some would argue that it again is the war for a lebensraum, but this time of the self-imposed Endlösung (final solution).  

[2] With some exceptions of Visegrád countries (such as Poland or Czech Republic, and lately Hungary) sporadically opposing a constant bandwagoning (but even that only in the domain of narrow EU fiscal or economic matters), Eastern Europe of today is unable to conceive and effectively promulgate a self-emancipating, balanced and multivector foreign policy. Fergusson goes as far as to claim for Eastern Europeans that: “they looked at Brussels (of NATO) the way former British colonies obeyed everything said and done in London.”

[3]“The entry criteria for Eastern European states was particularly costly: the so-called small and open economies, de-industrialized and over-indebted didn’t have any chance to be equal partners. For most of them, FDI (Foreign Direct Investment) is the only economic solution, which turned them into colonies…” – admitted even the Nobel laureate, economist Stiglitz in his The Price of Inequality. Moreover, the overly strong and rigid exchange rate of the domestic currencies in Eastern Europe is good only for foreign landers. It awards importers while disadvantages domestic manufacturing base and home exporters. This outdated anti-growth and anti-green economic policy has been universally abandoned long ago, even by the LDC (the UN-listed Least developed countries). No wonder that the GDP in the most of Eastern European states is well below its pre-1990s levels, and their ecological footprint index is of an alarming trend.  

[4]According to findings of the Budapest Institute of Economics (Corvinus University), for the past two decades, the volume of Austrian banking sector has increased 370%. How is this spectacular percentage achievable for the country of a flat domestic economic and negative demographic growth? This covert occupation of south-eastern Europe by the foreign financial sector did not create new jobs or re-create any industrial base there. As the Budapest Institute concluded aftermath, it was only meant to dry-out the remaining liquid assets (and private savings) from the rapidly pauperized, defeated belligerent. In 1914, Austria controlled banks as well; in Croatia, Bosnia, western Romania, northern Serbia, Hungary, southern Poland and western Ukraine. However, at that time, it also had a strict governing obligation as all of them were a part of the Monarchy. By having recognized the formal sovereignty to each of these entities, Austria today (like Sweden towards the three Baltic States in the northeast flank of Europe, and Germany in the central sector of Eastern Europe) has no governing obligations whatsoever. It can easily externally socialize (externalize) all its costs including banking risks, and individualize all profits (internalize), yielding it only for itself. Hence, the EU accession criteria, combined with a nominal independence of Eastern European entities (pacified by the pre-paid media and guided by the post-paid ‘elites’), means that the economic and other assets are syphoned out, but the countries have to take a burden of the state maintenance solely on themselves. “Creating the market economy attractive for FDI (foreign direct investments) in our case meant a de-industrialization, pauperisation, which eventually led to defunding of most of the state social activities. When someone dare say ‘our education, housing and health sectors are knocked down due to this’, they are quickly denounced as socio-romantics and accused for the social conservatism…” says Head of the Croatia’s Economic Institute prof. Slavko Kulic, and concludes: “…suffering of ever larger segments of societies means nothing to the architects of misery, to those Talibans of neoliberalism.” Recently released edition of the Oxfam study on the wealth distribution worldwide, unfortunately, confirms this bleak picture.

[5] Current labor relations in the most of Eastern Europe (Rusophone Europe, too) resembles pictures of the 18th rather than of the 21st century’s conditions, especially in the private sector of employment. It is all with a weak or even totally absent trade unionism, dismal labor standards, as well as the poor protection of other essential social, environmental and health rights. “We have stringent labor conditions to the unbearable maximum, so that the few self-styled ‘top managers’ can play golf more frequently and for a longer time… How can you possibly build any social cohesion when disproportionately many suffer for the dubious benefit of the asocial, predatory few…” – confessed to me the Ambassador of one of the largest Eastern European countries who served as a mayor of his country’s capital, before his ambassadorship in Vienna.

[6]Some ten years ago, at the special OSCE forum for demographics, I warned: “…lasting political, social and economic changes including very important technological breakthroughs – throughout our history – primarily occurred at generational intervals. This was an engine of our evolution…Presently, with demographically collapsing East European societies (natality rates, generational and brain drain), the young cohort will never constitute more than a tiny minority – in the sea of aged, backward-looking, psychologically defeatistic and biologically incapable, conservative status quo keepers. Hence, neither the generational change that brings fresh socio-political ideas, nor technological breakthrough –which usually comes along – will successfully ever take place in future of such demographies.” (For a detailed demographic outlook and tentative recommendations/ conclusions, see: Bajrektarevic, A. (2005), Our Common Futures: EURO-MED Human Capital beyond 2020, Crans Montana Forum, Monaco, 2005, as well as Bajrektarevic, A. (2005), Green/Policy Paper Submitted to the closing plenary of the Ministerial (Chairmanship summarizing the recommendations and conclusions of the OSCE Ministerial Summit Prague 2005), OSCE Documents EEA 2005.)

[7] Eastern Europe is Hondurized – this term refers to an operationalization of Monroe Doctrine in Central America, by which Washington allows its strategic neighborhood to choose their own domestic political and economic systems to an acceptable degree, while the US maintains its final (hemispheric) say over their external orientation. The so-called Brezhnev doctrine (of irreversibility of communist gains) postulated the Soviet (Suslov-Stalin) equivalent to Honduras-ization – Finlandization.

[8] Eastern Europe, the (under-)world of dramatic aging which, is additionally demographically knocked down by the massive generational and brain drain. Passed the dismantling of the communist order, these emerging economies, countries in transition of the new Europe contain reactionary forces (often glorifying the wrong side of history), predatory ‘elites’ and masses of disillusioned (in a life without respect and dignity, humiliated and ridiculed in the triviality of their lasting decline). Even if the new jobs are created or old kept, they are in fact smoke screens: Mostly a (foreign-loans financed) state-sponsored poverty programs where armies of the underemployed and misemployed cry out miserable wages in dead-end jobs. Former Slovakian cabinet minister laments in private: “Our ‘liberated East’ lives on foreign loans, or in the best case as the industrial suburbia of West Europe, having these few ‘generously’ franchised factories like Renault, VW or Hugo Boss. Actually, these are just automotive assembly lines and tailor shops – something formally done only in the III World countries. Apart from the Russian Energia-Soyuz (space-program related) delivery system, what else do we have domestically created anywhere from Bratislava to Pacific? Is there any indigenous high-end technical product of past decades known? … Our EU accession deals are worse than all Capitulation agreements combined that the Ottomans and Imperial China have ever signed in their history.”

[9] Gorbachev’s capitulation helped Germans to further gain confidence: Once territorially extended (or to euphemistically say; unified), Western Germany transposed that new size and its centrality into the advanced version of Machtpolitikdrang nach export-based über-economy. No wonder that the über-Mutti’s cabinet is gradually maneuvering the country out of the NATO-enforced Westbindung (an alliance, it does not see any more as its strategic necessity) towards an old, solely/unilaterally determined Ostpolitik of Wandel durch Kopf-Handel (change via altered mindset). Chancellor Markel’s ambassador Michael Schäfer is even more forthcoming on this eventual post-Western Made in Deutschland foreign policy. In the interview for the leading Chinese press he concludes: ‘I do not think there is such a thing as the West anymore.‘ /Kundnani, H. (2015), Leaving the West Behind – Germany Looks East, Foreign Affairs Magazine 94(1) 2015/

[10] Through the EBRD–EIB conditionalities and EU accession criteria, Eastern Europe was dictated to practically dismantle its essential industrial and service base. This dictatum upon defeated belligerent – euphemistically called countries in transition or new Europe – was followed by loans and assets received from the EU Accession and Structural funds. It was ‘sold’ to the East as award and as such presented to the deceived population. (However, it was rather to tranquilize the population at large and to pacify their local scenes, not at all aimed to modernize, re-industrialize or diversify economy, or to make production and service sector more efficient or competitive. Consequently, it was merely to subsidize the deteriorating purchasing power of the East – to make the peoples there accustomed to and encouraged for the foreign goods and services.) Thus, the funds were predominantly consumed for the western commodities. Ergo, Atlantic and Central Europe extended themselves geographically, while economically they skillfully managed to subsidize their own industrial base. To this very end, Eastern Europe’s elites readily took loans, while –in return– laying down sovereignty by issuing the state-debt guaranties. By doing so, they indebted their own states beyond bearing, and hence, they finally eliminated their own countries as any current or future economic competitor or politico-military challenger.  

[11]This is further burdened by the imperialism in a hurry – an inflammable mix of the Lithuanian-Polish past traumas and German ‘manifest destiny’ of being historically yet again ill-fated; impatient for quick results – simply, unable to capitalize on its previous successes. One of my German students recently very vividly satirized: “The irony of unintended consequence is that the intense relationship between Über-mutti (Chancellor Merkel) and boxman at large Klitschko is interpreted by Moscow as asexual, but not as apolitical.”To say, overly cosmopolitan interest for a faith of foreigners living in Germany for someone who infamously said: “multiculturalism is dead in Europe…” (Sarkozy, Cameron and Merkel openly and repeatedly viewed and diagnosed ‘death of multiculturalism’), as if the cluster of Atlantic-Central Europe’s national-states lived a long, cordial and credible history of multiculturalism on its soil.   

[12]Ukrainization could be attributed to eastern and western Slavs– who are fighting distinctions without significant difference. Pakistanization itself should describe the southern Slavs’ scenery: In lieu of truth and reconciliation, guilt is offered as a control mechanism, following the period of an unchecked escalation, ranging from a hysteria-of-a-small-difference to a crime-of-otherness purge.   

Modern Diplomacy Advisory Board, Chairman Geopolitics of Energy Editorial Member Professor and Chairperson for Intl. Law & Global Pol. Studies contact: anis@bajrektarevic.eu

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Eastern Europe

Ukraine’s issue may endanger peace in the whole of Europe

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Big challenges ahead, the world may face uncertainty, and unrest, as NATO allies have put forces on standby and sent ships and fighter jets to bolster Europe’s eastern defenses as tensions soar over Russia’s military buildup near Ukraine.

The military alliance’s move, announced on Monday, came as the United Kingdom began withdrawing staff from its embassy in Kyiv as fears persist of an imminent Russian invasion. Britain’s move came after the United States took similar action.

The UK’s foreign office said in a statement that it was pulling out “some embassy staff and dependents” in response to “the growing threat from Russia”.

Tensions in Ukraine are high following Russia’s massing of some 100,000 troops near its neighbor. The West says Moscow, which is angered by the growing relationship between Kyiv and NATO, is preparing to attack Ukraine.

The Kremlin has repeatedly denied planning to make an incursion, but the Russian military already took a chunk of Ukrainian territory when it seized Crimea and backed separatist forces who took control of large parts of eastern Ukraine eight years ago.

UK’s Johnson warns against ‘disastrous’ invasion

Johnson has said that a Russian invasion of Ukraine would be a “disastrous step” by Moscow.

“We need to make it very clear to the Kremlin, to Russia, that that would be a disastrous step,” he told broadcasters, adding an incursion would be a “painful, violent and bloody business”.

Asked whether he thought an invasion was now imminent, Johnson said intelligence was “pretty gloomy on this point”.

“I don’t think it’s by any means inevitable now, I think that sense can still prevail,” he said.

Moscow accuses the West of ‘hysteria’

Moscow has accused the US and its allies of escalating East-West tensions by announcing plans to boost NATO forces in Eastern Europe and evacuate the families of diplomats from the US embassy in Ukraine.

Kremlin spokesman Dmitry Peskov accused the West of spreading information filled with “hysteria” and “laced with lies” and said the probability of military conflict in eastern Ukraine being initiated by the Ukrainian side was higher than ever.

He claimed Kyiv has deployed a large number of troops near the borders of breakaway regions controlled by pro-Russian separatists, indicating it is preparing to attack them. Ukraine has repeatedly denied having any plans to do so.

Although Europe was part of the cold war and many other wars in other parts of the world but was away from any big war on its own soil for several decades. The prosperity and economic development were due to peace and stability in Europe for such a long time. People were feeling safe and secure, and focusing only on economic developments. If any misadventure happened in Europe, the unrest and instability may cost a heavy price.

It is appealed to politicians and decision-makers to avoid any misadventure and avoid any instability in Europe as well as other parts of the world. Wars never benefit humankind, even, winning the war does not mean success absolutely. The cost is on the human lives, either side of the warring countries. The world has been emerged as a global village and may impact whole humanity if any part of the world is disturbed.

Pakistan was the victim of the four-decade-long Afghan war for four decades and suffered heavy losses in the form of precious human lives as well as economic losses. The bitter lesson learned was to stay away from wars. Pakistan has learned this bitter lesson after huge suffering. Hope, the rest of the world may learn from our experience and may avoid any big loss.

It is believed that there is nothing that cannot be resolved through peaceful diplomatic dialogue, as long as there is a strong will for peace. The UN may intervene and play its due role to protect human lives. Hope all concerns may initiate meaningful dialogue and save humanity from big loss. Humankind is the most precious thing in this universe and must be protected at all costs.

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Eastern Europe

Ukraine Lies About 2022 Russian Attack to Hide Dying Economy

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Image source: Wikimedia Commons

Yesterday, Ukraine’s president Zelensky speaking to the Ukrainian Foreign Intelligence Service said “We have learned to contain external threats. It is time to launch an offensive to secure our national interests. We are united in wanting our territory returned immediately”.

Beginning the day after Joe Biden’s inauguration, Ukraine has been complaining of Russia’s troop buildup of over 90,000 men on its border. According to Ukraine’s Zelensky, Russia was prepared to attack at any moment.

In response to this, Ukraine mobilized over ½ its army or over 170,000 troops to the frontline with all the heavy weapons at its disposal accompanying them.

This force was a supposed counter to the Russian invasion army, which again, was just over the border.

In reality, the Russian army staged planned war games near the city of Yelnya, 160 miles (257 kilometers) from the Ukrainian border. You read that right, the Russian army was160 miles away from the Ukrainian border even though every major western publication made it sound like they were already in Kiev.

For the average modern army, that means over a day’s travel just to get to the Ukrainian border. Then another 4-5 hours travel on top of that to where the Ukrainian army is. So much for a surprise attack.

So what is it that Ukraine’s President Zelensky finds so threatening about Russia?

Ukraine’s President Zelensky told visiting US Senators in early June that the country’s military defense against Russia and the completion of the Nord Stream 2 pipeline are inextricably intertwined.

Once the project is completed, Ukraine will be deprived of the funds required to fund defense spending and defend Europe’s eastern border.

“Nord Stream 2 will cut Ukraine off from gas supplies, which will cost us at least USD 3 billion per year.”

Zelensky, always the joker, wants Russia to pay $3 billion per year so he personally can defend Europe from Russia who is paying him.

What a great story. He’s confusing screenwriting fantasy with diplomacy again.

“We won’t be able to pay for the Ukrainian army,” Zelensky observed.

In reality, Ukraine has about one month’s worth of diesel if Kiev ignores Ukraine’s responsibility to its own people to provide a safety net or at least access to necessities like bread or shelter in below-zero weather that’s on its way next month by heavily subsidizing gas and electric costs.

The only thing the government in Kiev is concerned about is losing the $3 billion in transit fees from the country they accuse of attacking them.

Zelensky’s government went as far as demanding fees from Germany and Russia when Nordstream II took over the transit game.

Zelensky’s Ukraine is shuffling Europe, NATO, and the US closer and closer to the line where one mistake in diplomacy, one stupid move by any of Ukraine’s infamous Neanderthal nationalist volunteers, and bang!

The next headline reads- Oops! Thousands dead in Ukraine as the war spreads to Europe.

Joe “Brandon” and club RINO are sleepwalking America right into this level of catastrophe by coddling his pet kleptocracy who’s already stolen billions of US dollars meant as aid.

And why? Why oh-why indeed.

Ukraine is using the supposed Russian attack to renegotiate its unsolvable gas situation.

It’s either this or tells Ukrainians; Oops! We screwed the pooch guys! You’re gonna freeze because we can’t afford gas.

Russia won’t invade because then Russia will be responsible for providing a total civil safety net including gas and electricity for Ukrainian people who otherwise can’t afford it.

Ukraine’s economy is dying. Russia doesn’t plan to foot the bill.

According to Oleg Popenko, the head of the Union of Consumers of Utilities (UCU), high gas costs will prevent most small and medium-sized firms from operating and will force them to close.

According to him, small business owners will be unable to “pull” the payment of 7,000 hryvnias (22,000 rubles) for heating.

As a result, we can anticipate a reduction in the activities of hairdressing salons, bakers, dry cleaners, dental offices, and so on.

They will either have to include the higher-priced communal unit in the pricing of their services, or they will have to close.

All types of businesses, from small dry cleaners to big agricultural holdings, use gas to some extent.

The only ones who benefit from the price increase are Ukrainian gas-producing businesses, which are now raising the price for their users’ dozens of times, resulting in massive profits.

In a recent interview, former President’s Office head Andriy Bogdan forecast a total economic collapse by February of next year.

“Here we still have December – this is the pre-New Year’s, joyous month, when everyone spends money, and somehow with hope:” We’ll pluck something out of the egg-box and live.”

However, this will not be the case in January and February.

“We will dismiss people, our industry will grow, our budget revenues will fall, and our economy will boom based on the price of gas and electricity,” Bogdan added.

“With a further rise in gas prices, the chemical industry and the production of fertilizers are at risk of dying altogether, predicts energy expert Valentin Zemlyansky.

“Industry will die. I am not kidding. The impact of energy prices on the business situation is an inertial process. The business will not close immediately, it will happen in stages. The beginning will be in March 2022, we will see the peak by May-June,”the expert says. Zemlyansky also emphasizes that this happens with a favorable market environment – mineral fertilizers are in demand, they are actively purchased by India, Pakistan, and China, but Ukrainian enterprises cannot afford their production. This was confirmed by the recent suspension of the specialized work of the Odessa Port Plant.

Thus, Ukrainian exporters are squeezed out of world markets. Many of Ukraine’s neighbors that produce similar products (for example, nitrogen fertilizers) receive gas at fixed low prices. In Turkey, for example, the government regulates gas prices for such businesses. It will also be difficult to sell the products that have risen in price on the domestic market due to the falling purchasing power.

Economic analyst Igor Deysan also warns that an increase in fertilizer prices will lead to the abandonment of sowing of many crops and an increase in the price of agricultural products, especially wheat in the 2022-2023 season.

“The cost of gas is largely carried over to the cost of wheat and other crops. If gas prices remain high for a long time, the rise in gas prices can make a significant contribution to the price of wheat,” the expert predicts.

Farmers still need to dry the harvested wheat crop, which also implies significant gas consumption. The next in the cycle of its processing are millers and bakers, who are also going bankrupt due to high gas prices.”

The breadbasket of Europe is empty. Ukraine hasn’t seen this scarcity since the 1932-33 famine they are constantly enshrining. The difference between then and now is this time the government is responsible for all of it.

Bakeries will close down because Ukraine oversold wheat to Turkey and its stocks are empty. Now, the breadbasket nation needs to purchase flour from Turkey.

Even if the grain was there, the gas needed to furnish the bakeries, cities, businesses, homes, hospitals, and government buildings with heat and electricity is not.

Deputy from the “Opposition Platform – For Life” Yuriy Boyko said on the air the other day that high gas prices are ruining bakeries. “I came to a bakery in the Kiev region. A modern enterprise. The bakery today pays for gas seven times more than a year ago. And for electricity twice. And energy carriers play a very significant role in the cost of bread, about 20%. That is, in reality, already today they are forced to either increase the cost of bread, or there will be no bread, ”the deputy said.

The short-term gas forecast for Ukraine looks bleak even though Ukraine has the second-largest proven gas reserves in Europe right behind Russia.

 Former Ukrainian Prime Minister Yulia Tymoshenko, now the leader of the Batkivshchyna party, stated on the Nash TV station on December 22 that Ukraine could furnish itself with gas in three years, but only under particular conditions.

Earlier, the politician said that Ukraine should not wait to purchase Russian gas supplies until the end of the heating season, because there is nowhere else to get it.

According to Tymoshenko, “To enhance gas production in Ukraine, the president’s will is required first and foremost because this should become a strategic and critical program for the development of the state’s energy sector.”

Today, there is no such political will. “Licenses are dispersed on the right and left,” she explained.

Secondly, according to Tymoshenko, non-budget banking investment resources must be directed to Ukrgazvydobuvannya, which also needs to be licensed for all explored deposits. In this case, the ex-prime minister is sure that Ukraine will provide its own gas in 3 years.            

Gas firms promise to reinvest revenues in increased production and modernization, but in the meantime, all other industries and small businesses can relocate across the world.

The Association of Gas Production Companies (AGKU) vehemently rejected proposals to impose state regulation of Ukrainian gas pricing in October, citing the fact that it would “inflict a blow on Ukraine’s image in the world arena and severely harm the European Union.” integration processes”.

Only those Ukrainian oligarchs’ enterprises like those of Rinat Akhmetov, Igor Kolomoisky, and Viktor Pinchuk, who control gas production companies and can send natural gas to their enterprises are affected in this situation.

If Ukraine could produce enough gas tomorrow, its citizens can’t afford high-priced Ukrainian gas and hydrocarbon products. The reserves are 5000 ft. below the surface and the costs of drilling and extraction are quite high.

The only way Biden’s Ukraine can become energy independent is if fuel prices perpetually soar from now on. Ukraine will be able to pay financial obligations like World Bank loans and investors like Hunter Biden.

According to Yuriy Vitrenko, the newly appointed CEO of Ukraine’s energy behemoth Naftogaz, Nord Stream 2 will give Gazprom a dominant position in Europe, giving it significant leverage over Germany and other EU countries.

The only option to avert this scenario is for Ukraine to gain access to gas from other gas-producing countries like Turkmenistan, Kazakhstan, or Azerbaijan, which would gladly use Ukraine’s transit system to sell gas to Europe.

“Germany should ensure that Gazprom cannot obstruct us,” Vitrenko argues.

“They must do so before Nord Stream 2 is completed, while Germany retains the essential leverage.”

The Germans must impose a moratorium until this type of competitive solution is implemented.”

If Russia refuses to cooperate, it will show that Nord Stream 2 is simply a geopolitical weapon aimed at harming Ukraine and monopolizing Europe’s energy markets, according to Vitrenko.”We have a transit system in Ukraine.” Let us compete to bring other gas providers into Europe,” we argue.

Vitrenko believes that once Nord Stream 2 is completed and the present five-year contract expires in 2025, Russian gas will no longer flow via Ukraine.

Arsen Avakov, Ukraine’s Interior Minister, has claimed that Russia may not even complete the current contract.

He warned that Moscow may disrupt Ukraine’s pipeline network to hinder gas transit across the nation and boost the argument for Nord Stream 2.

What’s interesting about this is it brings us right back to a graft-investor scenario reminiscent of Biden-Burisma. The companies feed profits to investors instead of reinvestment into equipment and permitting.

Secondly, Vitrenko wants the most expensive gas in Europe to materialize in his Ukrainian pipe. Caspian Sea gas, like Ukrainian fracked gas, is extremely costly to produce. The average Ukrainian won’t be able to afford it even if it was a possibility.

It’s only now that we get to the part that will make Americans and Europeans equally appalled.

Biden is using gas and oil cost spikes due to his mandated production cuts and the attempt to shutter Nordstream II to support Ukraine.

The more hydrocarbon product costs spike, the less dependent the EU and Ukraine are on Russian gas. This means fewer Russian gas transits to the EU.

As a consequence, Ukraine can profitably frack hydrocarbons and pay oligarchs, political grafts, and international loans. The gas is too expensive for Ukrainian people but investors like Hunter Biden or Amos Hochstein make out like bandits.

The more profitable the expensive EU oil and gas production rigs become, the more diverse gas purchases are and short-term energy diversification and security is achieved through extremely high price energy products.

If energy costs are through the roof, Joe “Brandon” has a clear runway to dismantle the US economy and Democrats will do what Democrats are doing.

Why should this infuriate you? What’s the difference between $1.80 per gallon and $4.00 per gallon gasoline in the US when it’s coming out of your pocket? The difference is Ukraine’s ability to pay its bills. The difference is Ukrainian politicians dealing with their own problems like grownups. The difference is Ukraine starts acting like a partner and less like a petulant child throwing temper tantrums.

How do higher fuel costs transfer to high retail off-the-shelf product costs?

Do high energy costs contribute to runaway inflation?

Now you know.

It is a hard enough choice to bear the cost in lives when a war is worth fighting and can’t be avoided. Ukraine’s Zelensky doesn’t want Donbass back in the fold. Just a few weeks ago, Zelensky described the citizens he claims to want back as “subhuman.”

The Ukrainians, as of January 2022, are not good partners or friends to America. They are unworthy of American support.  Do we want to give them the opportunity to send American kids to war so their oligarchs and our politicians can steal more?

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Eastern Europe

The Stewards of Hate

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A big bear is rattling the open door of his cage.  He cannot abide a NATO spear in his belly.  Hence Valdimir Putin’s demand for Ukraine to remain out of it, and for the military alliance to stop its advance into eastern Europe.

For 72 years until 1991, Ukraine was a republic of the Soviet Union, and before that for centuries an oblast of the Imperial Russian empire.  In 1939, parts belonging to Poland were annexed.

It was during the breakup of Russia following an independence referendum that Ukraine opted to separate.  But NATO is another story.  After the dissolution of the Warsaw Pact (NATO’s eastern counterpart), Russia had expected the West to do the same.  Instead, NATO became a US fig leaf for its wars in Iraq and Afghanistan.  Apparently, everyone in the world saw through this — except the US — as it embroiled itself in both countries, and the bill for the misadventures rocketed from $80 billion to an estimated $5 trillion.

The EU, a path to riches for East Europeans, is a Ukrainian dream, and Russian troops the reality when they wake up.  Such are the facts, no matter how much the Ukrainians are trying to ignore them. 

If the powerful Russian bear is the Ukrainian bete noire, its polar opposite is the case in India.  A powerful Hindutva movement abhors the Muslim minority.  It blames them for India’s problems, very much akin to the situation for Jews in pre-WW2 Germany.  Not unsurprisingly given the roots of the RSS, which modeled itself after the Nazis, instituting uniforms and drills.  A former member assassinated Gandhi for being too soft on Muslims.  Post independence, the RSS was banned by India’s first government which was led by Jawaharlal Nehru, a secular socialist.

The current prime minister, Narendra Modi, is a former RSS pracharak —  that is an active member who devotes himself full time to promoting RSS doctrine and, like a missionary, in seeking new members.  As an ambitious politician, he shed RSS ties when he entered politics and as leader expresses the wish for unity — sentiments not shared by his BHP colleagues.

There is the yogi elected chief minister of India’s largest state, and his undisguised derogatory opinions of Muslims.  Worse, at a political event at the end of December, leaders called openly for the killing of Muslims, and India’s leaders kept silent.  After general social media outrage at the speeches, the police  finally registered a case against some of the speakers for ‘promoting hatred between religious groups.’

Videos show many of the speakers are prominent religious leaders often present with senior ministers in the BJP government.  Imagine, calling for genocide in 2021.  The world reacted to the effort to eliminate Tutsis in Rwanda where it also began with reviling and dehumanization.  Genocide and even incitement to genocide is a crime.  Hence the prosecutions.  Incitement to genocide is recognized as a separate crime under international law and an inchoate crime which does not require genocide to have taken place to be prosecutable.

The founders of post-independence India, Gandhi and Nehru who took pride in being secular, must be in agony over international outlaws wanting to become the stewards of their child.

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