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President Trump’s tariffs and duties and the transformation of the world economy

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The 45thPresident of the United States, Donald J. Trump, keeps on repeating he wants to make America “great again”.

Hence, first and foremost, he wants to reindustrialize his country which, in fact, is currently the world champion in  the loss of productive, manufacturing or industrial companies.

The birth of a country that now consumes without producing much, namely the USA, materialized initially under Reagan’s Presidency, but continued rapidly with the successive Presidents.

For example, at the end of the 1960s, the US industrial labour force was at least 35% of the total number of people employed, while currently this labour force is only 20%.

Since 2001 over 70,500 companies with more than 500 employees have been closed down definitively.

The Gospel of Matthew (4:1-11) perfectly clarifies the situation of the post-productive post-economy – if we can use this expression.

Jesus Christ, who was hungry after having fasted forty days and forty nights in the desert, was tempted by the devil who told him: “If you are the Son of God, command these stones to become loaves of bread”.

Jesus answered to the devil: “Man shall not live by bread only, but by every word that comes from the mouth of God”.

Hence Jesus – as a great economist – explains to the devil that we must not change the Creation and replace God, but  instead follow Smith’s liberal and socialist labour theory of value.

Without the processing and transformation of materials – according to their laws – there is no value and therefore not even price.

Only manual or intellectual work, in fact, does transform materials, but never creates and hence does not even destroy them.

Hence we should produce only those goods and services that the market really asks for, without useless miracles, which are already incorporated in the Being as it is.

But let us revert to the economy of the powerful and stable North American de-industrialization process.

However, some sectors of US companies are still active, such as semiconductors and electronics, while clothing, for example, has fallen by 60% despite the US population has almost doubled since 1950.

When this happens, high value-added work increases, while all productive activities having a low incidence of unit value have definitively been delocalized outside the  USA (and the EU – although in this case, the debate has a political, military and strategic nature).

It is worth recalling that immediately before the first subprime crisis of 2016, the US industrial production had fallen by 15% – and this was certainly not by mere coincidence.

Later it started to grow again by approximately 4% – with many sectoral differences -in the years in which the United States managed to move their financial crisis elsewhere.

But let us revert to the factories that the US President deems necessary to make America great again, and to the specific policy of import and export duties imposed by President Trump in record time.

In fact, on March 1, 2018, the President announced it would imposed a 25% customs duty on steel imports from China and a 10% additional one on aluminium imports from China.

This, however, increases the production costs of the aforementioned US sectors that still handle and stand up to global competition, which obviously recoup the money lost from end customers, by increasing prices.

If – like the USA, but perhaps not for much longer – a country still lives on electronic manufacturing and components, the increase in the factory unit prices leads to an increase in the final price and, hence, restricts domestic or foreign markets.

Any price increase, albeit small, leads to a decrease in the buyers of those goods. Pareto taught this to us ad nauseam.

But clearly it was not enough.

Later, on April 3, President Trump announced he would  impose further 25% duties on additional 50 billion Chinese imports of electronics and aerospace products, as well as  machine tools.

This means that – paradoxically, but not too much –  President Trump wants to slow down precisely the  productive sectors that China deems strategic for the future, as shown in its Plan for 2025.

In 2017 China produced a total of 23.12 trillion US dollars, calculated on the basis of power purchasing parity (p.p.p.).

Currently the EU only ranks second, with 19.9 trillion US dollars, again calculated as p.p.p. In 2016 it was the world’s top  producer.

The United States only ranks third, with a yearly product of only 19.3 trillion dollars.

Financial stones cannot be turned into loaves of bread.

In spite of everything, China has a yearly per capita income of 16,600 US dollars, while the US yearly per capita GDP is equal to 59,500 US dollars.

Scarce domestic consumption, all focused on exports, is the Chinese model that has developed since Deng Xiaoping’s “Four Modernizations”, which survives only in an area in which all macroeconomic variables are not left to some “market” invisible hands, but to a central authority.

However, this is exactly the reason why China is the largest world exporter.

Hence it rules end markets.

In 2017, it shipped abroad 2.2 trillion US $ worth of goods and services.

Currently 18% of Chinese products are exported to the United States.

This much contributes to the US trade deficit, which currently amounts to 375 billion US dollars.

China is also the second largest importer in the world, to the tune of 1.7 trillion dollars in 2017.

The mechanisms of interaction between China and the United States, however, are even more complex than we could guess from these scarce data and statistics.

It is not by mere coincidence that China is still the largest holder of US public debt.

In January 2018, China held 1.2 trillion in US government debt securities, i.e. 19% of the US public debt held by foreign investors.

A very powerful monetary, political, strategic and even military leverage.

Obviously China buys US securities to back the value of the dollar, to which the yuan is pegged.

However, it devalues its currency (and hence the US dollar) when Chinese prices need to be kept competitive.

Therefore, while the United States wants to increase the yuan value, with a view to favouring its exports, China threatens to sell its US public debt securities immediately.

The dollar increased by 25% between 2016 and 2016, but since 2005China has devalued the yuan.

A very clear example of aggressive monetary pegging.

Moreover, the issue of China’s unfair commercial behaviour is now long-standing and it was also raised by many candidates to the US presidential elections.

In fact the success of Paulson, the former US Treasury Secretary, was to reduce the American trade deficit with China and to later ask for opening to foreign investment in key sectors of the Chinese economy.

For example in the banking sector, thus putting an end – in some cases – to the Chinese practice of export subsidies and administered and capped prices.

Just deal with realism and intelligence and Chinese Confucianism can find solutions to everything.

The other side of the Chinese miracle, however, is the very high debt of companies and households, which is obviously  still connected to the balance between the yuan and the US dollar.

In this case, however, the programmed slowdown of the Chinese GDP growth and the limits on strong currency exports, as well as the control of wages and profits are enough.

But let us revert to President Trump’s tariffs and duties.

In fact the US President has imposed these new tariffs and duties on Chinese imports to force China to remove the  foreign investors’ obligation to transfer technology and patents to their Chinese partners.

Nevertheless China trades many productsit could also manufacture on its own just because it wants to fully open Western intellectual property rights for its companies.

A few hours later, however,  China responded to President Trump with a 25% increase in duties on 50 billion dollars of US exports to China.

On April 6, President Trump further reacted by stating he would call for the imposition of other duties on additional  100 billion dollars of imports from China.

It is worth noting, however, that this accounts for only  a third of total US imports from China, which is considering the possibility of responding harshly to President Trump by steadily increasing tariffs and duties for all US products entering Chinese markets.

Besides the issue of relations with China, however, the other side of the US tariff and duty issue is the NAFTA  renegotiation, officially requested by President Trump on August 16, 2017.

It should be recalled that the North American Free Trade Agreement is the largest commercial agreement currently operating in the world, signed by Canada, USA and Mexico.

Firstly, President Trump wants Mexico to cut – almost entirely – VAT on imports from the USA and put an end to the programme of maquiladoras, i.e. the factories owned by foreign investors in Mexico, in which the components temporarily imported into that country under a duty-free scheme are assembled or processed.

The maquiladoras programme started in 1965 to reduce the huge unemployment in the North Mexican regions, but currently there are at least 2,900 such factories between Mexico and the USA producing 55% of total Mexican export goods.

They mainly manufacture cars and consumer electronics, which are exactly the sectors that – as already seen – President Trump  wants to revitalize.

Obviously the current US Presidency wants to dismantle the maquiladoras on its Mexican border, where 90% of such companies are located.

Thanks to these special factories, Mexico competes directly with US workers, considering that the local Central American workforce is much cheaper.

Thanks to this mechanism of cross-border production outsourcing – between 1994 and 2010 alone – 682,900 US jobs moved to Mexico, with 80% of US jobs lost in the manufacturing sector.

Moreover, again due to NAFTA, as many as 1.3 million jobs in Mexican agriculture were lost.

In fact, following the removal of duties between the USA and Mexico, the latter was flooded with US produce below cost and subsidized by the State.

All this happened while the Central American administration cut agricultural subsidies – which will soon happen also in the crazy EU – and focused the little State aid left for agriculture to the big haciendas, thus destroying and ruining small farmers.

Liberal and free-trade masochism.

NAFTA, however, also has many advantages for the United States.

Without the tripartite inter-American agreement, North American food prices would be significantly higher, while also oil and gas from Mexico and Canada would be much more expensive for US consumers.

As Carl Schmitt taught us, the American Monroe Doctrine (epitomized by the slogan “America to the Americans”) was developed above all against Europe. Nevertheless, the agreements like NAFTA allow to share – at least partially – the benefits of increased trade between the USA, Canada and Mexico in a less asymmetric way than usual.

The US primacy theorized by Monroe in 1823 and later rearticulated by Roosevelt in his State of the Union address in 1904, with the Roosevelt Corollary whereby  “chronic wrongdoing may in America, as elsewhere, ultimately require intervention by some civilized nation and force the United States, although reluctantly, in flagrant cases of such wrongdoing, to the exercise of an international police  power”, holds true also at economic level.

But are we currently sure that the most civilized nation is still the Northern one?

Just to better understand what we are talking about, it should be noted that the NAFTA agreement is made up of 2,000 pages, with eight sections and 22 chapters.

As such, it is currently worth 0.5% of the US GDP.

Since the official implementation of this agreement in the three countries which have adopted it, North American exports have created as many as 5 million jobs, with the creation of 800,000 additional jobs in the USA alone.

Nevertheless approximately 750,000 other jobs have also been lost in the United States alone, mainly due to the transfer of US activities to Mexican maquiladoras.

Hence a slight surplus.

Moreover, NAFTA has anyway ensured the status of “most favoured nation” to Canada and Mexico and has removed all tariffs and duties for the goods produced in one of the three Member States. It has finally established certain and clear procedures for settling trade disputes between the companies of every country belonging to it.

But above all NAFTA enables the United States to better compete with EU and Chinese products, by reducing the prices of the NAFTA goods wherever they are produced.

Also in this case, however, President Trump has threatened to walk out of the inter-American trade treaty and impose a 35% duty on imported Mexican products.

The aim is obviously to bring back investment in the maquiladoras to the United States.

Is this useful, also with regard to an evident trade war with the EU, Japan and China, as usual?

Is there currently sufficient real liquidity in the United States to back the supply increase which is thus created, with the return of all these productions back home?

Or is the idea prevailing of having everything be bought on credit, with all the consequences we can easily imagine?

Or is it possibly a matter of sending the NAFTA productive surplus back to European, Chinese and Asian markets?

Moreover, with specific reference to another multilateral trade agreement, the Trans-Pacific Partnership (TPP), President Trump announced he would like to establish a series of new bilateral trade relations that the US President likes more than the multilateral ones.

It is worth recalling that the TPP applies to the USA and to other 11 countries around the Pacific Ocean, namely Australia, Brunei, Canada, Chile, Malaysia, Japan, Mexico, New Zealand, Peru, Singapore and finally Vietnam.

All these countries together account for 40% of the total global GDP, which is currently equal to 107.45 trillion US dollars annually. They are also worth over 26% of world trade per year and as many as 793 million global consumers.

Obviously the list does not include China and India, considering that the TPP architecture has been designed to surround, close or at least limit the growth of the two great Asian countries.

President Trump also wants to renegotiate the TPP, which  by2025 is expected to increase trade among all Members States to the tune of 305 billion us dollars per year.

Hence if President Trump walks out of the TPP, many Member States will look to China for replacing the USA – and, indeed, many of them are already doing so.

Therefore the US President’s idea is to make the United States grow – through this wave of various forms of protectionism – by at least 6% a year, with an expected 3% net tax increase.

Too much. It would inevitably lead to high inflation and the classic boom-bust cycle.

If the economy grows by 2-3% a year, the cycle can expand almost indefinitely.

Conversely, if there is too much money looking for too few goods to buy, inflation will always come and the booming phase will stop all of a sudden.

Hence the bust materializes, with the quick reduction of wages and credits, as well as with an increase in prices and interest rates.

Therefore President Trump’s very dangerous idea is that –  in such a monetary and economic context -the United States can keep on borrowing all the liquidity needed because, as he said recently, “we never default, because we can print our currency”.

This is true. But if too many green bucks are printed, interest rates will rise immediately and this new version of Reagan-style supply-side economics will be stopped.

Finally a very serious recession would materialize, which currently would not be so easy to export to “friendly” countries.

Recently the dollar area has much shrunk.

It is no longer true –  as the former US Treasury Secretary John Connally once told to his European colleagues – that “the dollar is our currency, but it is your problem”.

So far, however, President Trump has decided 29 commercial or financial deregulation operations and over 100 internal guidelines and directives to the Administration, as well as other 50 new global market rules discussed by the Congress.

On February 3, 2017, the US President also decided to reform and almost repeal the rationale of the Dodd-Frank Wall Street Reform Act, with rules and regulations further reducing checks and audits on banks, which are no longer obliged to send to the Treasury Ministry data and information about the loans granted.

Moreover the banks with clients’ deposits lower than 10 billion US dollars must not even abide by the Volcker Rule, which forbids banks to use clients deposits to make profit.

Therefore, since 2015, banks cannot hold hedge funds and private equity funds.

Nowadays, however, with the reform of the Dodd-Frank Act, many credit institutions can avoid these difficulties and restrictions and play roulette with clients’ deposits.

For the new US lawmaker, Volcker’s and Greenspan’s policy was a way to avoid the implosion of the US financial system, after the fatal end of the Glass-Steagall Act which had been lasting since 1933.

It is worth recalling that the Glass-Steagall Act had come into force when the Roosevelt’s Presidency decided to imitate the Fascist legislation of the new separation between deposit banks and merchant or investment banks.

Banks did not want the Glass-Steagall Act because they wanted to be “internationally competitive”.

They also wanted to create money at will, regardless of the relationship between investment and collection.

What happened is before us to be seen.

President Trump wants to abolish even the Departments of Education and Environmental Protection, with an increase in military spending that is supposed to lead to a total public deficit of 577 billion US dollars.

Hence, in this new context, can the US Presidency avoid the Chinese commercial pressure and also ensure that the jobs repatriated to the USA from NAFTA, from negotiations with Japan, from the TPP and the rest of the multipolar trade system are such as to back the dollar without creating excessive inflation?

Moreover, all international trade experts agree that it is not the simple and traditional tariff barriers – but rather the non-tariff ones, which are very fashionable today – to cause real problems.

In short, we need to consider trade policy together with  strategy: if US protectionism increases, the growth of peripheral economies will decrease.

Thust here will be increasing possibilities of crisis in developing countries, while China’s desire to replace the USA in multilateral economic mechanisms that directly affect it may increase enormously.

Also the desire of global US competitors, such as the EU, to replace US exports at unchanged rates – at least for a short lapse of time – may increase.

There is no need for dumping – non-tariff transactions and the quality standard of made-in-Europe products are enough.

Therefore, nowadays, nothing is certain.

Certainly not US protectionism, of which we have noted  the dangers for North America and also for its geo-economic partners. Not even universal free trade, which does not consider the political evaluations and the economic, monetary and military planning of the various world commercial areas, is feasible and practicable.

Indeed, as in military policy, a great agreement – as the initial GATT was – is required in the current world market, with a view to establishing – for at least ten years – the areas and spheres of economic and productive influence and their possible future changes.

There is no free trade without planning.

Advisory Board Co-chair Honoris Causa Professor Giancarlo Elia Valori is an eminent Italian economist and businessman. He holds prestigious academic distinctions and national orders. Mr. Valori has lectured on international affairs and economics at the world’s leading universities such as Peking University, the Hebrew University of Jerusalem and the Yeshiva University in New York. He currently chairs “International World Group”, he is also the honorary president of Huawei Italy, economic adviser to the Chinese giant HNA Group. In 1992 he was appointed Officier de la Légion d’Honneur de la République Francaise, with this motivation: “A man who can see across borders to understand the world” and in 2002 he received the title “Honorable” of the Académie des Sciences de l’Institut de France. “

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The Secret U.S. & UK War Against Europe

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The secret U.S.-and-UK war against Europe is well documented but little known, and some conceptual and historical background is pre-requisite in order to understand that documentation.

Historically, nations which share the same currency don’t go to war against one-another unless one of them is a colony of the other and is (like America’s colonies were in 1776) in a revolution to establish its independence against the imperialist one of them. Having a common currency is therefore a strong factor — but not a decisive one — toward peace between nations.

UK (Britain) has its pound, EU (the European Union) has its euro, and U.S. (America) has its dollar. U.S. (its dollar) and UK (its pound) are now in a war against EU (its euro), so as to help to extend into the future the dollar’s (America’s) existing dominance as the main global reserve currency — the future political and financial dominance by America, heading ultimately to control over all nations by America’s Government, practically obviating the United Nations and its (crippled) role till now as the authoritative source of international law: the laws that govern not within nations but instead between nations — replacing that existing body of international laws, by “the international rules based order,” in which America’s Government will be setting those “rules.” It’s an international struggle to replace the U.N. and all international laws, by a global dictatorship either by the U.S. and the UK, or else by the U.S. and the EU. All three of those currencies are, however, agreed together, to prevent there ever being control over international laws by the U.N. and its agencies, or by anything OTHER THAN the nations that are in America’s fundamental military alliance, which is the North Atlantic Treaty Organization: NATO. NATO is to be expanded in order to increase the U.S. Government’s (and the U.S. dollar’s) dominance, and thereby weaken the U.N.’s authority and its already-crippled and ever-weakening power. 

UK’s aristocracy took control of American foreign policies on 25 July 1945, when, at the Potsdam Conference, America’s Anglophile General Dwight Eisenhower seconded Winston Churchill’s hostility against Joseph Stalin by telling the naive new U.S. President Harry Truman (who practically worshipped Eisenhower) that either the U.S. would ultimately conquer the Soviet Union, or else the Soviet Union would conquer America; and, so, the Cold War was then born, on that date, in Truman’s head, by his decision to agree with Eisenhower’s viewpoint and commence what became called “the Cold War” so as ultimately to conquer Russia. Truman then backed General George Marshall’s plan, The Marshall Plan, in 1948, to provide billions of dollars in U.S. reconstruction aid to any European country that would side with America against the Soviet Union in order to establish the planned future all-encompassing U.S. global dictatorship (control of the world by America’s billionaires and their corporations, especially granting them access to all countries’ natural resources).

America’s NATO military alliance was then created in 1949 to assist in the intended ‘anti-communist’ (actually anti-U.S.S.R) ultimate conquest (which would be the crowning achievement of America’s conquest over the entire world). Subsequently, America’s CIA brought America’s European allies together into what ultimately became the European Union, so that European nations would be controlled from Washington both militarily and economically. However, whereas formerly, the European Union was controlled by the U.S. Government almost as much as America’s NATO anti-Russian military alliance is, that is no longer the case; and, therefore, UK’s aristocracy, during 2016-2020, led a secret campaign, to remove UK altogether from the EU, and to install at 10 Downing Street, Prime Minister Boris Johnson to do Brexit — British exit from the EU — in what Britain’s billionaires saw as being the right way, keeping “the Anglosphere” (U.S. and UK) in control over the world, as opposed to the way in which UK’s then Prime Minister Theresa May was negotiating with the EU, which would have weakened not only America’s control over Europe, but also UK’s control over Europe, which latter (control over Europe) the UK controls only indirectly by virtue of its “Special Relationship” with the U.S. Government, which controls Europe. (For UK to lose its voting privilege in the EU was puny in comparison to UK’s increased power over the EU through being uniquely allied with America’s Government, which controls the EU.) That constitutes the necessary conceptual and historical background, in order to understand the following:

On May 15th, Kit Klarenberg at The Gray Zone bannered “Operation Surprise: leaked emails expose secret intelligence coup to install Boris Johnson”, and demonstrated from leaked private documents, that an authentic conspiracy by a clique of supremely well-connected individuals within Britain — Britain’s Deep State, answerable only to Britain’s billionaires and hereditary aristocracy — had actually engineered Theresa May’s downfall as Prime Minister and her replacement by Boris Johnson, so that UK would no longer be allied with EU except as being EU’s superior, because of Britain’s unique bonding with its former colony, America.

Here is how the leader of that cabal or conspiracy explained, on 4 October 2019, his strategy to a small group of followers — students, perhaps — which fortunately still remains on youtube:

However, his jargon in that stunningly revealing video (which now must be understood in light of Klarenberg’s 15 May 2022 revelations) requires some additional important historical and terminological background. 

“The five-eyes alliance,” that speaker said, “keeps the free world free,” but what does this mean? His “free” is actually a lie; really, it’s the opposite of free; it is the voting and taxpaying publics’ enslavement to the U.S. and British Military-Industrial Complexes (or “MICs”), after the 1991 termination of the U.S.S.R and of its communism and of its Warsaw Pact military alliance that mirrored America’s NATO, and it now means only the U.S. regime’s rule of the world by its aristocracy, who are psychopathic and who control and profit from their armaments-makers while their publics pay for it in taxes and destructions and corpses. It means precisely what the originator of this conspiracy, Cecil Rhodes, had first stated in 1877, and it does constitute the “Special Relationship” that UK and U.S. have had ever since this “Special Relationship” was finally and fully in place and fully functioning, starting on 25 July 1945, when Truman set America onto this fateful path, of conquering the entire world — Rhodes’s vision of the world’s future, and of how Rhodes would create the organization to bring it about. Here is from that historic 1877 statement, by Rhodes (which the speaker in that video was actually — and very skiilfully — representing: this is the original statement of that viewpoint):

I contend that we are the finest race in the world and that the more of the world we inhabit the better it is for the human race. …

Why should we not form a secret society with but one object the furtherance of the British Empire and the bringing of the whole uncivilised world under British rule for the recovery of the United States for the making the Anglo-Saxon race but one Empire. …

What has been the main cause of the success of the Romish Church? The fact that every enthusiast, call it if you like every madman finds employment in it. Let us form the same kind of society a Church for the extension of the British Empire. …

To and for the establishment, promotion and development of a Secret Society, the true aim and object whereof shall be for the extension of British rule throughout the world, the perfecting of a system of emigration from the United Kingdom, and of colonisation by British subjects of all lands where the means of livelihood are attainable by energy, labour and enterprise, and especially the occupation by British settlers of the entire Continent of Africa, the Holy Land, the Valley of the Euphrates, the Islands of Cyprus and Candia, the whole of South America, the Islands of the Pacific not heretofore possessed by Great Britain, the whole of the Malay Archipelago, the seaboard of China and Japan, the ultimate recovery of the United States of America as an integral part of the British Empire, the inauguration of a system of Colonial representation in the Imperial Parliament which may tend to weld together the disjointed members of the Empire and, finally, the foundation of so great a Power as to render wars impossible and promote the best interests of humanity.

This was to be, and is, the foundation-stone of the renewed British Empire’s Deep State. (Here is its full document.)

Rhodses’s phrase “the best interests of humanity” expressed actually his racist-cultural viewpoint. It is, ultimately, an allegation that Her Majesty’s Government will be better to rule over international relations than any alternative, such as FDR’s intention for an armed United Nations, could ever be. Though Rhodes wanted international relations to be ruled by Britain’s aristocracy, FDR wanted it to be ruled by a U.N. which would be an armed democracy (federation) of nations. Hitler had his vision of a “Thousand-Year Reich,” but Churchill, who was an ardent Rhodesist, and who had been a protégé of Rhodes, favored, instead, Britain’s version of such an all-encompassing global empire, and this was/is to be achieved by harnessing Britain’s empire to the back of the far stronger American horse. Rhodes knew, even in 1877, that this would be the only way that the British Empire could successfully continue into future centuries.

Right now, the EU is sinking because by adhering to America’s demand to halt importation of gas and oil from the EU’s main supplier, which is Russia, energy-costs throughout the EU will soar and destroy their economy. And this is the strategy of Biden, and of Johnson. Biden, too, is a Rhodesist — just as Obama and Trump and Bush I & 2 and Clinton and Reagan were. The Governments of both U.S. and UK are Rhodesist. This doesn’t mean that in each and every matter, the two dictatorships agree, but that almost always they do; and, that when they don’t, UK’s Government doesn’t prod its American horse to buck and throw off its British rider, because those Brits know that this — riding on the American horse — is the ONLY way that they can continue the British empire to the extent that they have been allowed to do after WW II. The Rhodesists, and their “Five-Eyes Alliance” (Prins also refers to it as “the Anglosphere”, which is yet another phrase for what Rhodes was advocating for) are realists, who are trying to extend for as long as possible into the future their joint and collective aristocratic exploitation of the entire world. This means: keep Europe down, and all other countries out. It’s especially the case with regards to Germany, which is the EU’s industrial giant. As the New York Times reported on 5 April 2022:

Already Germany has reduced its dependence on gas from Russia [from 55%] by 15 percent, bringing it down to 40 percent in the first three months of the year, the energy ministry said.

But industry leaders have pushed back against imposing sanctions on Russian natural gas. Turning off the taps would cause “irreversible damage,” warned Martin Brudermüller, the chief executive of BASF, the chemical producer based in southwestern Germany. Making the transition from Russian natural gas to other suppliers or moving to alternative energy sources would require four to five years, not weeks, he said.

“Do we want to blindly destroy our entire national economy? What we have built up over decades?” Mr. Brudermüller said in an interview with the Frankfurter Allgemeine Zeitung last week.

Already, due to pressure from the Biden Administration, and against German popular opinion and the pleas by German businesses of all sizes not to do it, Germany recently cancelled the recently completed Nord Stream II mammoth gas pipeline from Russia to Germany, which would have reduced gas prices in Europe. Instead, those prices are expected soon to double. And almost all of the EU will be taking a big hit from such decisions by Germany and other EU nations. It is a U.S./UK war against not only Russia but also Europe.

That is what Gwythian Prins, the leader of their cabal or conspiracy, who speaks in that youtube video, was actually talking about. (Klarenberg’s article says nothing about Rhodes, but what Prins says in this yotube video of him is likewise totally in keeping with Rhodes’s plan, about which the article by Klarenberg reveals lots of private evidence.) And America’s European stooges are doing everything they can to impose American rule, despite the fact that in certain details, UK’s aristocracy are profoundly dissatisfied with the extent to which the EU is not doing everything that UK’s aristocrats want them to do. UK’s aristocrats know that bucking the American horse would cause them to be thrown off of it. So, they choose, instead, to stay on it, and to merely nudge it whenever they want a minor change in its direction. And that is what Prins is advocating for, against the EU, upon his colleagues and students.

And that explains the documentation linked-to here regarding the U.S.-and-UK war against Europe. It is their war to keep Europe down, and all the rest of the world out, and only Britain still in the saddle riding the American horse to permanent victory, against the publics everywhere. It is for continuation of “the Washington Consensus.”

Klarenberg’s article includes lots of fascinating documentation, such as this photo of Prins’s email dated “September 22, 2018 at 4:53 AM” to a certain “Julian Blackwell, addressing his chum as ‘Trooper,’ a reference to the publisher’s SAS special forces background, and thanking him for his ‘hugely welcome and generous willingness to cover my foregone income for effectively the first half of this FY [financial year] [so that Prins would be able to engineer Boris Johnson’s replacing Theresa May].’” It would all be highly incriminating, if UK weren’t a dictatorship and Prins himself weren’t one of that dictatorship’s key agents. Interestingly, the organization at which Prins was speaking, “Veterans for Britain” (of which Prins is a board-member) was revealed on 5 December 2017 to be a “Dark Money” group fronting for Conservative Party UK and for Republican Party U.S. financial backers; and the group which revealed that was “Open Democracy,” which itself is funded by mainly Labour Party UK, and Democratic Party U.S., financial backers, but also by some middle-of-the-road (i.e., anti-Trump) U.S. Republican Party financial backers — in other words: “Open Democracy” is funded by billionaires in both America and Britain. In both countries, membership in the dictatorship class (the nation’s aristocracy) requires being a billionaire, or else close to that. The public are merely their suckers, to be manipulated (via propaganda from their media) however at least some of the billionaires want them to be suckered. There is consequently a constant contest between conservative and liberal billionaires, in order to s‘elect’ into national office only politicians who are backed by at least SOME of the billionaires. And one of the things that all of the billionaires are funding is propaganda in favor of keeping U.S. and UK on top, ruling the rest of “The Anglosphere,” and keeping Europe down, and all other countries out.

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A U.S.-ASEAN summit—a face or a farce

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Photo credit: The White House

Inherited from the classic diplomacy of Europe, summit is a globally recognized instrument of highest-level meeting for common interests among nations. It has been practiced from time to time until now. Ad hoc summit principally aims to promote symbolic purpose rather than specific negotiations, therefore, it is reasonable to suggest that though controversial over its essential functions, summit is better suited to the promotion of friendly relations with an emphasis on ceremonial functions. Due to this, the U.S.-ASEAN summit held on May 12-13 is no exception.

At the end of the summit, the United States and ASEAN member states reiterated in the joint vision statement the importance of adhering to key principles, shared values and norms enshrined in the Charter of the United Nations, the ASEAN Charter, the Declaration on Zone of Peace, Freedom and Neutrality (ZOPFAN), the Treaty of Amity and Cooperation in Southeast Asia (TAC), the 1982 United Nations Convention on the Law of the Sea (UNCLOS) and the Treaty on the Southeast Asia Nuclear Weapon-Free Zone (SEANWFZ). In addition, they committed to strengthen and build more comprehensive ASEAN-U.S. Dialogue Relations, which have been seen indispensable to bilateral ties as well as the broader region and the international community.

It is clear that the U.S. officials had entertained the design to make the case that Russia’s invasion demonstrated the fragility of the international system while China’s tacit support for the invasion equally made a contrast with the United States’ principled stance. Yet, ASEAN members in general kept their heads down and avoided the issue rather than getting in the middle of a dispute between major powers. Rather than clearly denouncing the Russian invasion of Ukraine as the U.S. has acted globally, the joint vision statement called on an immediate cessation of hostilities and creating an enabling environment for peaceful resolution, and genuine respect for sovereignty, political independence, and territorial integrity in line with the U.N. Charter and international law. As a result, it is inevitable that the geostrategic hawks in Washington were disappointed their unsuccessful persuasion of ten Asian countries to take side with the United States and its allies and partners. Because of this, the U.S. aid package to the ASEAN was seen as a joke because it agreed to offer $150,000,000 for peace in a sharp contrast to the multiple-billions dollars for supporting a long war to weaken its geopolitical rival Russia, as U.S. Secretary of Defense Lloyd Austin said.

ASEAN is a regional economic community founded in 1967, yet it has been seen as the most dynamic economic powerhouse in the 21st century. With its hugely rich natural resources and technological innovation capacities, ASEAN has committed to preserve the Southeast Asian region as a Nuclear Weapon-Free Zone and free of all other weapons of mass destruction, as enshrined in the Treaty on the Southeast Asia Nuclear Weapon-Free Zone (SEANWFZ Treaty). Therefore, ASEAN vow to fully comply with the relevant UN Security Council resolutions, taking into account the international community’s call for diplomacy as the instrument to maintain peace and security in the region.

It is understandable that amid the Ukraine war, Washington was highly motivated to hold this special summit to demonstrate its leading role in the world affairs including Asia. As the Biden administration has said that it was the high time to show its enduring commitment to ASEAN and that the Indo-Pacific region is a U.S. national security priority. Yet, although China’s power projection in Southeast Asia figures prominently into the summit, the two-day meeting did not touch the question openly and collectively. Instead, the summit primarily discussed a host of other critical issues — from COVID to climate change to the uncertain scenario in Myanmar. Actually, as Brian Harding explained prior to the summit that considering the Biden administration’s geostrategic design, Washington as the host was sure to address how ASEAN factors into Biden administration’s Indo-Pacific Strategy and how the nations showed their supports to Ukraine during the ongoing war with Russia. Essentially, while competition with China is at the heart of the United States’ regional strategy, support for a cohesive and resilient ASEAN is one of the critical means for success in advancing a free and open Indo-Pacific alongside modernized alliances like the Quad (i.e., the U.S., Australia, India and Japan). However, it is not easy to achieve since ASEAN is an extremely diverse group of 10 countries that operates by consensus, meaning it is rarely nimble nor bold, even on its best day.

It is self-evident that ASEAN countries are highly alert to the fact that relations between the United States and China have important implications for themselves. Accordingly, they all want an engaged and present multiple players including United States, China, Japan, India, Australia and the EU member states to be involved into the regional equilibrium. As former Indonesian Foreign Minister Marty Natalegawa has called it more positively, a dynamic equilibrium. Yet, what they do not want is to be forced to choose between the United States and China.

China and ASEAN approved the comprehensive strategic partnership in 2021, and now it stands ready to strengthen coordination and collaboration with ASEAN countries to update the action plan and to deepen cooperation in fields such as digital connectivity, green economy, public health, and industrial and supply chains. More sensible is that China hopes that the consultations on a code of conduct in the South China Sea will maintain the positive momentum and reach a consensus since Beijing has openly declared that the South China Sea is common asset of all the countries in the region.

From a geostrategic perspective, China opines that the ASEAN-centered regional cooperation architecture has formed in East Asia, which is the key to maintaining peace and stability in the region. Consider that the U.S. Indo-Pacific strategy moves toward against the common and long-term interests of regional countries, China has to react against the U.S. to advocate the Cold War mentality and the relevant approaches such as establishing QUAD, a typical of bloc confrontation in the region, and promoting AUKUS which is essentially provoking an arms race in the region. Although China welcomes any countries outside the region to play a constructive role in the peace and development in the region, but it does not accept any actions that undermine peace, stability, solidarity and cooperation in the region. In brief, no matter what regional strategy is proposed by one country, the purpose should be mutual benefit and win-win results rather than a zero-sum game.

Despite all these arguments, there is no reasons for the world to underestimate the close and comprehensive cooperation between the United States and ASEAN. This summit agenda were primarily focused on apolitical areas cooperation, such as clean energy, health security, the digital economy and the deteriorating situation in Myanmar. President Biden was aware of the wisdom of not making his ASEAN guests to be as frustrated with the situation as himself since there was deep divisions among ASEAN member states on the issues and challenges they have to face. Accordingly, it is fair to say that the U.S.-ASEAN summit recently held in Washington was good enough in public relations but insufficient in tackling the real global issues from poverty, climate change and illegal change of regime by “color revolution”.

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Americas

Peace and Punishment: “Saving” Ukraine or Embarrassing Putin?

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Official White House Photo by Carlos Fyfe

As we near 100 days of the special military operation in Ukraine it would be good to take a strategic-analytical step back and see where the current situation is in real terms. Unfortunately, despite all sides and all parties giving extensive and continuous rhetoric to the interests of peace and the cessation of violence, the reality is the Ukraine conflict does not seem to be close to ending and instead seems more poised to hunker down into an old-fashioned military quagmire. Unlike quagmires of the past, where historians and political scientists tend to examine missed opportunities and strategic missteps that made said conflicts almost inevitable devolutions into non-progressive stalemates, the Ukraine conflict today does not seem to structurally mimic those previous lessons. As such, the question that needs to be asked is not whether this is about striving for peace and peace alone as much as it might be about how one side is striving for peace AND punishment.

On May 9, President Biden signed a new Lend-Lease Act which would facilitate the easier transfer of weapons systems and other military aid to Ukraine in its defense against Russia. The US Senate passed the bill unanimously, a rare act of unity given the current state of domestic politics in America. Unfortunately, this bipartisanship is no signal of new-found friendship across both aisles between Republicans and Democrats. They still mistrust each other as much as they ever did. But, interestingly, the bipartisan unanimity of the bill does show that despite their differences and animosity for each other, the desire to “send a message” to President Vladimir Putin and the overall desire to continue to cause problems for the Russian military within Ukraine is a “single-issue unification” factor for the United States Senate. No matter what President Biden says publicly on the microphone, this military aid and the delivery of major weapons systems is not aimed at solely achieving peace. At least, not a constructive peace in which both sides are able to walk away with a semblance of dignity and self-respect (which is truly the only way this conflict will end and stay ended). Aid like the Lease-Lend Act is quite literally the opposite of the wiser intention of trying to create a “Gentleman’s Exit” that would be enticing for Putin. Rather, the peace Biden is really talking about with this measure (but never explicitly explained to the American people) is a peace in which Putin is first embarrassed and Russia is humiliated. THIS is the real goal. So, in this way, the so-called peace measure instead adds fuel to the fire because President Putin is neither naïve nor blind. It will not be difficult for him to see the real essence of the maneuver. Consequently, it will quite possibly force a reaction in which there is no capitulation but instead a ratcheting up of conflict.

Why else would all of these declarations of new military aid take place on “Victory Day” in Russia? Do not forget the Lend-Lease bill is reviving a form of military aid from WWII, where the US was helping the UK fight Germany more readily. Thus, in a humorlessly ironic way, the US is sending a signal that Putin is the Hitler-like figure, exactly on the day when Russia celebrates its own victory against actual Nazis in WWII. It is without doubt a vicious message. The West says it had to be sent because they were more worried Putin would officially declare a formal war against Ukraine on this day. But one must ask: logically speaking, does it make sense to say America is worried about Putin going deeper into war with Ukraine so therefore it must send even more weapons and deadly munitions into Ukraine? In other words, more weapons will make it “less” of a war??? It is almost laughable if not so tragic.

If one is relying on the acute intuition of the American people to see through these contradictions and put a stop to such counter-intuitive “peace” initiatives, then frustration can be expected. Unfortunately, the American public attention span has held true to form in that most people are no longer really paying that much attention to Ukraine. Unquestionably, they still generally support Ukraine as Americans always love supporting and rooting for the underdog. Especially when cheering for the underdog in this case not only comes without any physical risk to American soldiers but also adds on the benefit of getting to humiliate your rival while assisting the lesser power. That is a “win-win” in American public eyes.

But the fevered following of the news and exhaustive social media blasts garnering endorsement for Ukraine’s efforts do not, to me, seem as intense or as comprehensive as they did just two months ago. Thus, the frustration: this lack of attention to conflict details means no one can expect any kind of pressure from the American people seeking an end to the conflict. They will simply follow, sheep-like, the narratives being provided. Ergo, providing more weapons is the way to “peace.” Embarrassing Putin is the only way to “save Ukraine.” Humiliating the Russian military is what brings “greater security.” If there was even a modicum of greater introspection by the American people, there would be more questions about whether or not this is really the most efficient and best way to achieve peace. You would think after America’s own travails this century in Afghanistan, it would understand that quagmires benefit no one except the military-industrial complex and the many powerful corporations that feed into it. While not trying to be overly cynical, this is really the only side that truly and most obviously benefits from an extended and protracted military stalemate in Ukraine.

As for reports and rumors that the United States was actually considering the Lend-Lease Act back in January, that is, before the actual Russian declaration of a special military operation, I would not put too much conspiracy theory into the idea that this proves the United States was already intending to foment violence itself in Ukraine with Russia. The reality is tension between the US and Russia has existed over Ukraine for quite a long time and the United States Intelligence Community is extremely good at its job, ie, acquiring data and collecting information that gives it insights into the future maneuvers of other countries. I have no doubt the USIC had an inkling of suspicion that the special military operation was coming or at least quite likely. And as soon as this suspicion emerged, it would have instantly begun preparing responses and counteractions to undermine said operation. More importantly, this isn’t even the right question to focus on for the global community. The right question is this: are we truly convinced these American initiatives are aimed only at achieving the quickest and most efficient end to the conflict and establishing peace or is it aimed more than anything at using Ukraine as a field of play to ensure that Russia is damaged and weakened for decades after the conflict is finished?

The US and UK have made it rather clear that peace alone is not enough. Tranquility in Ukraine is not the only goal. Peace AND punishment is. Which is without a doubt the most depressing and dangerous aspect to the whole affair. The United States currently is trying to deftly balance itself on a knife edge of military and psychological speculation: how far can it go in helping Ukraine inflict damage on Russian military units? How much weakening of Russian power can occur before the situation becomes desperately untenable and the Russian side might be inclined to enact “more reckless” initiatives? It is not coincidence that American mainstream media pushes out daily reports about the worries and concerns NATO and the West have about Putin intending to utilize chemical, biological, radiological, or nuclear weapons as the conflict in Ukraine gets ever murkier and more unclear for his side. What the media leaves out, however, in this lament is the fact that it is not Ukraine creating the murkiness: it is the weapons systems being pumped into Ukraine and the Western “advisors” on the ground and embedded within Ukrainian units, teaching them how to use the systems with deadly efficiency, that potentially push Russia toward a so-called reckless edge. In short, the Americans declare concerns over dilemmas that are their own creation. And that, again, is because what is transpiring today in Ukraine has nothing to do with peace exclusively. The West does not want peace as soon as possible and by any means necessary. It wants peace with a lesson attached, with a weakening of power that places Russia back into a docile and less assertive state.

In which case, if true, perhaps everyone in this conflict is focusing on the wrong Germany. On both sides, the imagery constantly being invoked is of Nazi Germany, the Germany of WWII. In reality, the country everyone should be worried about is WWI Germany, the one that simply had to be humiliated and laid low for its hubris and aggression. The country that everyone had to make sure would never be in a position to threaten the world again. It was that Germany that directly led to the insanity and atrocity of WWII. We would be well-warned to remember the lessons of one hundred years ago when pride in the punishment was a higher priority than peace itself. When security was thought better established through humiliation and emasculation rather than through diplomacy and enhanced collaborative communication. Hopefully, the West remembers eventually that even an imperfect peace is preferable to peace through punishment. The former allows for development and evolution. The latter brings only destruction and devolution.

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