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The relations between the United States and Saudi Arabia

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In the period from 2009 to 2013 when Hillary Clinton was US Secretary of State, Saudi Arabia contributed with at least 10 million US dollars to the Clinton Foundation.

Especially in the phases when, incidentally, Hillary Clinton permitted the sale of advanced weapons to Saudi Arabia

As stated by Prince Regent Mohammed Bin Salman in an interview released in 2016 to the Jordanian news agency “Petra”, Saudi Arabia also paid over 20% of Hillary Clinton’s election campaign.

However, it also subsidized the other candidates to the US Presidency, although to a lesser extent.

In the political campaign for the US Presidency, no foreign investor puts all his/her eggs in the same basket – just to follow a typical US piece of advice.

Moreover, like Russia and other countries, also the Saudi Kingdom has always backed both US presidential candidates financially.

During the electoral campaign, Trump theorized the ban on entry into the USA of tourists and migrants from most Islamic States, including Saudi Arabia. He was also harshly criticized by Prince Muhammad Bin Salman and by the famous Saudi multimillionaire, Al Walid bin Talal, the owner of the Kingdon Holding Company of Riyadh, a huge world financial holding, with packages of personal shares in Coca Cola, AOL, Amazon, Apple until 2005, Pepsi Cola, Fininvest, as well as a 5% shareholding in Rupert Murdoch’s media companies, and many other investments that it is even useless to mention here.

After becoming US President, Trump apologized and made his first trip abroad to Saudi Arabia in May 20-22, 2017. It was there that he placed his hands on an illuminated globe that marked the birthof the Global Center for Combating Terrorism in Riyadh.

Once released from his prison in the Ritz Carlton of Riyadh on January 27, Al Walid bin Talal, the nephew of Saudi King Abdullah, paid a 6 billion dollar fine to the winning faction of the royal family, led by Prince Mohammed Bin Salman.

After finally realizing to what extent the Wahabite Kingdom is important for the US economy, also Trump has relented and seen reason with the Al Saud’s dynasty.

In an interview with Fox News Night TV released on October 19 last, the US President said that he was interested in knowing the truth about the assassination of Saudi journalist Kashoggi – who, indeed, was also resident in the USA – recently occurred in his country’s Consulate in Istanbul.  Nevertheless, President Trump has refused to stop all the arms sales to Saudi Arabia for this reason.

At the end of May 2017, during his first trip abroad, precisely to Saudi Arabia, Donald J. Trump also signed a contract for the sale of arms and for other economic transactions with Riyadh – an agreement worth as many as 110 billion US dollars immediately and additional 350 billion dollars over the next ten years, with the political aim of countering Daesh-Isis, in particular.

The purchases include 18 billion dollars for C4 systems (Command, Control, Communications and Computers);  13.5 billion dollars for seven THAAD units (Terminal High Altitude Area Defense), anti-missile defense systems;  6.65 billion dollars for the old Patriot-class anti-missile systems; 25 billion dollars for the recapitalization of the Saudi purchase of the F-35 fighters; 5.8 billion dollars for three KC130J and 20 C130J transport aircraft;  6 billion dollars for 4 coastal battleships and additional 11.5 billion dollars for ships already ordered by Saudi Arabia in 2015 and blocked by former President Obama, although with the interested pressure of his Secretary of State.

Other Saudi investments are aimed at spy planes, fine electronics, troop movement and ground attack vehicles, as well as the purchase of Apache helicopters and M1A2 tanks, and finally for many human and computer-interactive military training programs for all the Saudi Armed Forces.

Clearly Saudi Arabia has turned a blind eye to the technological upgrading of the weapon systems ordered – far more advanced than the level of current purchases – but in view of a strong future bond with the United States.

Saudi official sources also state that until May 2017 the Kingdom suffered over 60 terrorist attacks by Isis-Daesh and Al Qaeda, with over 25 of them over the last two years.

According to the documents of the Saudi Center for Combating Terrorism, over 200 Saudi citizens, including policemen and civilians, have been killed by Islamist terrorism.

It is strange that a deeply Islamic State defines the “sword jihad” as “terrorism”, as if it did not know what the jihad rules and techniques are.

Some terminologies are used only by Western States, which have not yet well understood what is happening in the Islamic religious and political universe.

Furthermore, Saudi Arabia claims to have organized at least 341 air raids against the positions of the self-proclaimed Caliphate in Syria, thus resulting the second counterterrorist power operating in the region after the United States.

Nothing to do, however, with the air raids of the Russian Federation, which the US intelligence services have already counted to thousands.

Reverting to the Saudi Kingdom, the Wahhabi regime has also started to control private donations to the self-proclaimed Caliphate.

A special and semi-secret Counter ISIL Finance Group between Saudi Arabia, the United States and Italy was created in 2015, with a view to countering the financial networks of the Caliphate.

Saudi Arabia alone has also established a Financial Intelligence Unit, which is also member of the Egmont Group, a network of 159 Financial Intelligence Units between EU, “dangerous” countries and Middle East networks.

Moreover, regardless of their being registered in the Kingdom, the Saudi charities can operate only through the Riyadh center of the Saudi Red Crescent and the King Salman Humanitarian Aid. Any autonomous fundraising through mosques and even through the mere charity public centers is forbidden.

Money transfers without a license (accounting for 60% of the total transfers) are also banned, but there are also sanctions against Hezbollah.

Two birds with one stone, of course.

Until September 30, 2017 -that is the end of the last fiscal year available -the United States sold as many as 55.6 billion US dollars of arms worldwide, that is over 33% more than the previous year.

As President Trump has declared openly, he does not want “to stop a 110 billion dollar investment in the United States” – a sum that, however, also includes the 23 billion dollars of Saudi arms purchases, those already granted by the former Obama administration.

At least since 2012, one fifth of all US foreign arms sales has gone to Saudi Arabia.

One third of all arms sales in the world originates from the United States.

Half of US arms sales, however, goes to the whole Middle East and Africa.

With specific reference to the weapon systems, the largest share of US exports is in the aeronautics sector, followed by the missile sector and finally by the ground weapon systems and transport vehicles.

The countries buying more weapons from the USA are Saudi Arabia, Poland, Japan, Romania, Bahrain, Australia, the United Kingdom, the United Arab Emirates, Greece and Singapore.

Reverting to Saudi Arabia, a royal decree of April 22, 2017 appointed Khalid bin Salman Al Saud -the son of the current King and former pilot of fighter aircraft, who demonstrated excellence in dangerous missions against the self-proclaimed Syrian-Iraqi Caliphate – as the new Saudi Ambassador to the United States.

On October 2, 2018, with his usual frankness, President Trump stated that the Saudi Kingdom would collapse in two weeks without the US protection.

It is true and the current Prince and leader of Saudi Arabia knows it all too well. It is not yet certain that the Kingdom will last only two weeks without the United States, but it knows it is at risk.

Hence Prince Muhammad bin Salman is newly recreating the traditional relationship between the United States and Saudi Arabia, in spite of the unfortunate incident of the journalist Khashoggi, by underlining two important factors such as the relevance of the Wahabi Kingdom’s investments for the United States, which are now essential for this country, and the bilateral and strategic relationship with the United States that the Al Saud’s dynasty hopes will become even more stable.

Without America, Saudi Arabia is lost. Without Saudi Arabia the United States would definitely become poorer, and no President can accept this.

This holds true also for Yemen, where, since 2015, the United States has been training, arming and sharing intelligence with the Saudis against the Houthi, the Shiite guerrillas of the seventh Imam, obviously organized by Iran. What if the Saudis were afraid of one thing only, i.e. the uprising of the Shiites who are many in the area of their main oil wells?

It was exactly in 2015, the year when King Salman came to the throne and immediately delegated power to his son Mohammed.

Hence a military exchange on an equal footing between the United States and Saudi Arabia? Let us analyze the oil situation between the two countries more closely. Ultimately this is what really matters. However, we will talk about it at a later stage.

Meanwhile, however, let us see how Saudi Arabia presses the US companies and the economy, not only with the most well-known shareholdings.

At the time of the assassination of journalist Khashoggi in the Saudi Consulate in Istanbul, the Emirates’ Foreign Minister, Sheikh Abdullah Bin Zayed Al Nayhan, immediately expressed his full support for Saudi Arabia.

Even Oman, which had certainly not been a supporter of the Saudi-led anti-Iranian coalition, supported the Kingdom in that harsh situation.

Also the Secretary General of the Gulf Cooperation Council, Abdullatif Al Zayani, supported Saudi Arabia.

Even the Secretary-General of the Arab League, however, has recently expressed his support for Saudi Arabia.

At strategic and economic levels, harshly punishing the Saudi Kingdom for the assassination of journalist Khashoggi in the Saudi Consulate of Istanbul – an assassination which has currently turned out to be premeditated and particularly brutal – leaves no other chance for Prince Muhammad bin Salman than resorting to the usual countermoves.

Some Saudi leaders have openly mentioned the “oil weapon”, which would be used as a hefty club against European oil consumers, and not as it happened after the Kippur war of October 6-25, 1973 – when someone, namely ENI, escaped the grip of the Saudi-led OPEC.

If the oil price increased, also the US economy would suffer inflationary pressures and pressure on interest rates. This would greatly slow the US economic growth down – and the EU one even more.

Europeans should not believe they can use the Russian oil and gas to counteract the rise in Saudi and Sunni OPEC prices.

Russia fully agrees with OPEC and will not give up a general increase in the oil barrel and natural gas prices.

Certainly the increase in the oil barrel price, which is supposed to reach approximately 90 US dollars by next year, would favor the sale of shale oil and natural gas – a production which has doubled in the United States, but with a shorter price cycle: higher prices generate greater supply, which inevitably leads to a subsequent lowering of the oil barrel price.

The less Iranian oil on the market, the greater tension for the price increase – not to mention the reduction of the Russian and OPEC supply and the almost cessation of extraction in Venezuela for the well-known internal political reasons.

All this happens while the demand for oil and gas is increasing rapidly all over the world.

Combining the restriction to the Saudi and Sunni OPEC production with the growth of US production, it is certain that the growth of the North American supply has significantly reduced the Saudi power to exert pressure. In fact, Saudi Arabia can raise prices only in a way not stimulating a further growth of the extractive production in the United States.

Hence the “oil war” that Prince Mohammed bin Salman has in mind – if it were to start – would lead to a great energy crisis, stronger in Europe than in the United States.

Naturally the weak and now demented European Union has said nothing serious in this phase.

If Europe thinks President Trump can pull its chestnuts out of the fire, it is completely wrong.

The US President does not like Europe at all. He will soon put an end to the German trade surplus and he can scarcely bear NATO. Even Israel, however, has no regard for this EU and not even Russia takes it too seriously.

In this framework of isolation, Europe does not even pursue its most immediate interests.

Every day it only deals with pseudo-economic matters and quarrels with its South that some German economists would already like to leave to the fate of a “Southern” Euro to be separated from the “Northern” Euro.

We will see how the monetary competition between the two “Euros” will be structured – a competition which could be fatal for the Northern and Southern versions of the unsuccessful European monetary union.

A currency that would like to be global, but without the characteristics of a lender of last resort it makes us laugh. Nevertheless, the EU leaders still believe in it.

The economy is made up of geopolitics and global strategy, not the other way round.

The old neoclassical handbooks which are read in Strasbourg and Brussels are now antiques.

If the United States or other countries were to apply sanctions on Saudi Arabia, Prince Mohammed Bin Salman – who is in a hurry to relinquish the too oil-led economy which, however, made the huge fortunes of his country – would have very good cards to play.

Certainly, since 2015 Saudi Arabia has had public budgets in the red. For the first time in its financial history it has issued public debt securities. Probably it has also problems of slow depletion of some wells, in addition to the insecurity generated by the essential fact that their maximum extraction area has a very strong Shiite minority, on which Iran is constantly operating – from Bahrain and from Oman, which turns a blind eye.

The Public Investment Fund of Saudi Arabia (PIF)is a sovereign fund which largely operates in the United States, in Europe and in Asia.

The aforementioned Sovereign Fund of Riyadh has a 5% shareholding of Tesla, as well as other stakes in Tesla’s direct competitor, namely Lucid Motors. It has invested 3.5 billion dollars in Uber, the global leader of unlicensed taxis, as well as 20 billion dollars in a US infrastructure fund managed by Blackstone. PIF has built three new cities on the Red Sea coast and invested 45 billion dollars in the Soft Bank. Furthermore, the Prince Regent –  who directly leads PIF – said he wanted to invest additional 170 billion dollars over the next three to four years.

However, Saudi Arabia has also other geoeconomic weapons in its hands: in the United States, PIF owns 70% of Sabic, a large plastics-producing company. There are also the Saudi Telecom Company and the Saudi Electricity, with significant shareholdings in the sector in North America. There is also the aforementioned Blackstone Fund for Infrastructure, as well as a 45% shareholding of the National Commercial Bank, the Saudi Arabian Mining Company, the Entertainment Investment Company and the Fund of Funds.

PIF has also Saudi investments in Europe: the main ones are in Krups, Siemens, Arcelor Mittal and in many other sectors and small and medium-size enterprises.

PIF has also operations in place, of a size comparable to those in the USA, China, Pakistan, Russia, Ukraine and  the Philippines.

In South Africa, the Saudi government is negotiating with the Denel arms factory for cooperation with the Kingdom’s defense industries.

According to the Saudi press sources, the country would already have in mind at least 30 major operations to harshly respond to the possible US sanctions for the Khashoggi case.

They would not be oil sanctions, but rather financial, banking and industrial sanctions.

A “Samson” operation is also planned, with a fast and very significant reduction in oil production, capable of making the oil barrel price jump up to an incredible level of 400 US dollars.

Prince Mohammed bin Salman could also block the purchases of weapons already planned in the USA – and it is worth recalling that the Saudi Kingdom is the second largest importer of weapons in the world.

The Prince Regent has also invested significantly in the Silicon Valley industries, which he is integrating into the Saudi Giga Projects.

Finally, the Saudi investment line could head to countries such as China, Russia and India, instead of the USA and the EU.

Egypt, too, would soon participate in this game, with currently unpredictable consequences in the Maghreb region, and especially in Libya – where Egypt is the major supporter of General Khalifa Haftar – as well as in the United Arab Emirates.

A transition from the West to the East that would probably be the tombstone of Western economic and financial development.

It would also create a structural financial crisis in the United States, which could partly retaliate by unleashing a harsh trade war precisely with the European Union.

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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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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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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U.S. & EU Set to Spend Hundreds of Billions of Dollars on Ukraine

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Image: US Army

On 9 May 2022, Reuters headlined “U.S. Congress plans nearly $40 bln more for Ukraine, COVID aid to wait” and reported that “U.S. congressional Democrats agreed to rush $39.8 billion in additional aid for Ukraine,” and:

The House of Representatives could pass the plan, which exceeds President Joe Biden’s request last month for $33 billion, as soon as Tuesday, and Senate leaders said they were also prepared to move quickly.

A proposal for additional COVID-19-related funding, which some Democrats had wanted to combine with the emergency Ukraine funding, will now be considered separately.

Biden on April 28 asked Congress for $33 billion to support Ukraine, including more than $20 billion in military assistance. That proposal was a dramatic escalation of U.S. funding for the war with Russia.

The U.S. Government, with virtual unanimity, view the war in Ukraine to be not so much Ukraine’s war with Russia, but actually as America’s war with Russia, and therefore as being the first direct battleground of World War III, which America will win at all costs. The plan is for America ultimately to become enabled to place its nuclear missiles on Ukraine’s border with Russia, just a five-minute flying-time away from blitz-nuking Moscow and thereby greatly weakening Russia’s command-and-control by eliminating Russia’s central command faster than Russia will be able to launch its retaliatory missiles (if any of those survive America’s initial attack). In 2006, America quietly and unilaterally (though never officially, because the policy-change was gradual and secret) abandoned the meta-strategy that had guided both Russia and the United States ever since the end of World War II, which was called “M.A.D.” or “Mutually Assured Destruction” (the use of nuclear weapons only in order to prevent a WW III) to, instead, “Nuclear Primacy” by America (the use of nuclear weapons to win a nuclear war). Even some top American nuclear scientists have spoken publicly against that plan. But with the participation now of over 98% of the members of the U.S. Congress who constantly are voting for it, and of all U.S. Presidents ever since the time of George W. Bush, that plan (“Nuclear Primacy”) is the plan, and it aims for America to conquer, actually, in the final analysis, the entire world. Ukraine has become central to this plan because Ukraine’s border is closer to Moscow (and the Kremlin) than any other is. (Therefore, Finland’s would be the second-best, from the U.S. Government’s point of view, the “Nuclear Primacy” view.) The EU, under Ursula von der Leyen and Charles Michel, is almost entirely united behind it, and, like France’s Emmanuel Macron, hopes to change the EU’s Constitution so as to eliminate the ability of each individual EU member nation to veto any foreign-affairs proposal such as for the EU to immediately admit Ukraine into its membership (thereby, vetoing for America to become enabled to get Ukraine into its military alliance against Russia, NATO). As Macron said on May 9th, it will take ‘several decades’ for Ukraine to join the EU, and therefore the EU’s founding documents need to be changed in order to prevent this sort of roadblock from ever happening again. So: America and EU both are in agreement that Russia must not be allowed to win this war, which is called Ukraine’s war but is really the U.S.-and-allied war to conquer Russia. (Any stragglers will then easily be able to be taken care of.) They are pulling out all the stops they can, to win this, to win in the first real battleground of WW III, which is Ukraine, on Russia’s border.

Also on May 9th, Bart M. J. Szewczyk, a nonresident senior fellow at the German Marshall Fund of the United States (which was set up to memoralize the Marshall Plan, which U.S. President Truman had set up in order to bribe European countries with billions of dollars of U.S. reconstruction money if they would join with America against the Soviet Union), headlined in America’s Foreign Policy magazine, “Ukraine Faces an Economic Abyss”, and wrote that “Ukraine may need $600 billion for postwar reconstruction — and more the longer the war drags on.” 

Washington’s instructions to Ukraine’s President Volodmyr Zelensky are to continue the war for as long as possible so as to enable as much weapons from Lockheed Martin, General Dynamics, Raytheon, and other U.S. ‘Defense’ contractors, to pour into the country and maybe wear out Russia and force Russia to capitulate to Ukraine (i.e., to America) in this, the first round of WW III. That $600 billion, or so, would, of course, come from U.S. and EU not during the war, but AFTER the perhaps hundreds of billions of dollars will already have been spent during the war, in order to buy, from those firms, the weapons that Ukrainians will, by then, have used, in order to achieve Russia’s defeat in this non-nuclear opening round of what clearly now will be a long war to conquer Russia. Szewczyk went on to say that

The trans-Atlantic division of labor over the past eight years — roughly speaking, about 80 percent of economic aid for Ukraine from Europe and 80 percent of military aid from the United States — suggests likely future trends. As European Commission President Ursula von der Leyen argued this week, Europe has a “special responsibility” toward Ukraine and must allocate “massive investment” to sustain it. In particular, the European Bank for Reconstruction and Development — which has invested more than $150 billion across Central and Eastern Europe since its founding in 1991 — will be a key player in galvanizing this effort. The bank has already facilitated over $16 billion of investment in Ukraine and recently announced a new $2 billion package. Its annual meeting next week will already be dominated by the topic of Ukraine.

Of course, U.S. and EU taxpayers have already spent lots of money in order to get this war started, up till the point when, on 24 February 2022, Russia finally invaded. Szewczyk wrote that “the European Union and European financial institutions — Ukraine’s main backers — provided around $18 billion in grants and loans to Ukraine between 2014 and the start of Russia’s latest invasion on Feb. 24.” He ignored there the billions that America had spent, even prior to Barack Obama’s successful coup which had brought to power in Ukraine a rabidly anti-Russian regime there to replace the neutralist government that Ukraine had had prior to that U.S. coup, which undeniably did occur, and which had been in the planning stages of the Obama Administration ever since 2011 at the very latest.

Furthermore, Szewczyk wrote, 

An even deeper collapse of Ukraine’s wartime economy could send millions more refugees to Europe.

There are ample resources across the West to finance Ukraine’s wartime economy through grants, loans, and trade concessions. Getting Ukraine up and running is in the West’s — and above all, Europe’s — own interest. Not only does the EU need a functioning bulwark against an imperialist Russia, but the EU is also Ukraine’s main trade partner.

So, all of these estimates are far likelier to increase, instead of decrease, during the coming decade.

Szewczyk is the author of the 2021 book, Europe’s Grand Strategy: Navigating a New World Order, which his publisher introduces by saying of it, “This book proposes that the European Union should craft a grand strategy to navigate the new world order based on a four-pronged approach. First, European decision-makers (both in Brussels and across EU capitals) should take a broader view of their existential interests at stake and devote greater time and resources to serving them within the wider cause of the liberal order.” The description of him provided there is “Bart M.J. Szewczyk served as Member of the Policy Planning Staff at the US State Department and Adviser on Global Affairs at the European Commission’s think-tank.”

So: when Reuters headlined on May 9th that “U.S. Congress plans nearly $40 bln more for Ukraine, COVID aid to wait”, it was clearly a harbinger for “belt-tightening” by U.S.-and-EU publics on everything else than what is said by their respective governments to be “existential” matters, which means conquering the entire rest of the world, before such issues as “COVID” can be overcome. U.S.-and-allied ‘national security’ interests “against an imperialist Russia” (as Szewczyk put it) must come first, in these ‘democracies’. War must come first. That is clearly the policy now, because of the “existential” threat, not to Russia, but from Russia.

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