On January 30th, the South China Morning Post bannered “How Donald Trump could change the course of Meng Wanzhou’s ‘years-long’ battle against extradition: Canada usually complies with extradition requests but the China-US trade war – and the US president’s apparent willingness to intervene in the case – could make the difference this time.” That “‘years-long’ battle” referred to an expected future “years-long” legal wrangling over Wanzhou, not to anything in the past, because the extradition request was made by U.S. President Donald Trump only on December 1st of last year.
Canada’s press likewise is reporting the intense political nature of Trump’s demand to bring Wanzhou, one of China’s top international corporate executives, to the U.S., on criminal charges. On January 28th, Canada’s Global News TV network headlined “Conservatives slam Liberals for handling of Meng Wanzhou case” and “Liberals say Conservatives making ‘false claims’ on China”.
On January 29th, Toronto’s Globe and Mail headlined “U.S. formally requests extradition of Meng Wanzhou to face financial fraud charges”, and reported that “Canada has received a formal request from the United States for the extradition of Huawei executive Meng Wanzhou, officially starting the clock on a complex process that could ultimately see her sent stateside to face multiple charges of financial fraud. … Ms. Meng, who is living in her Vancouver home, appeared briefly in B.C. Supreme Court on Tuesday for a bail adjustment hearing.”
China’s Government views “Western egoism and white supremacy” behind Trump’s actions in this case.
On January 9th, China’s Ambassador to Canada reacted to the 1 December 2018 arrest of the the mega-corporate Chinese executive Wanzhou by saying:
Without violating any Canadian law, Meng was arrested last month and put in handcuffs just as she was changing planes at the Vancouver International Airport. … Some people in Canada, without any evidence, have been hyping the idea that Huawei is controlled by the Chinese government and poses security threats to Canada and other Western countries, and that Chinese law requires China’s enterprises to collaborate with the government in espionage activities. However, these same people have conveniently ignored the PRISM Program, Equation Group, and Echelon — global spying networks operated by some countries that have been engaging in large-scale and organized cyber stealing, and spying and surveillance activities on foreign governments, enterprises, and individuals. … Something is considered as “safeguarding national security” when it is done by Western countries. But it is termed “conducting espionage” when done by China. What’s the logic? … The reason why some people are used to arrogantly adopting double standards is due to Western egoism and white supremacy. In such a context, the rule of law is nothing but a tool for their political ends and a fig leaf for their practising hegemony in the international arena.
The U.S. arrest warrant alleged that Wanzhou had violated Trump’s anti-Iran sanctions. However, Trump himself had instituted those sanctions after his having single-handedly, and in violation of the U.S. Constitution’s requirement that all treaties must be approved by at least two-thirds of all sitting U.S. Senators, failed to seek such Constitutionally mandated approval (and his predecessor, Barack Obama, had likewise committed the United States to ending those sanctions by Obama’s violating the U.S. Constitution’s requirement of at least a two-thirds vote approving in the Senate any treaty-change). Violating the U.S. Constitution is now perhaps even the norm for the U.S. Government, especially regarding international relations. And the U.S. Supreme Court almost never intervenes or objects, at all, in any way. The U.S. Constitution is dying, if not dead, at least on many of the most important issues.
(Incidentally, at the time, 9 June 2010, when the sanctions were first being imposed against Iran, Susan Rice, Obama’s U.S. U.N. Ambassador, had endorsed them heartily, by saying, “Today, the Security Council has responded decisively to the grave threat to international peace and security posed by Iran’s failure to live up to its obligations under the Treaty on the Non-Proliferation of Nuclear Weapons (NPT).” So, these sanctions were instituted by the U.N. Security Council in 2010 with Obama’s support. However, in order for the U.S. to participate in them without violating the U.S. Constitution, a two-thirds vote of the U.S. Senate was necessary, but no such vote was ever held in the U.S. Senate. And such ignoring of the U.S. Constitution is normal. Furthermore, the White House proudly announced on 31 July 2012, during President Obama’s re-election campaign, that “With President Obama’s leadership, the United States gained the support of Russia, China, and other nations to pass United Nations Security Council Resolution 1929 in June 2010, which created the most comprehensive and stinging international sanctions the Iranian regime has ever faced.” It wasn’t until Obama’s coup in Ukraine in February 2014, that Russia’s leader, Putin, knew that Obama had been deceiving him that Obama was intending to reverse, or “reset”, former U.S. President G.H.W. Bush’s secret policy since the time of 24 February 1990 to continue America’s Cold War against Russia even after the Soviet Union and its communism and Warsaw Pact would end, as they all did in the following year, 1991. Obama had used that deceit in 2010 to get Russia and China onboard America’s anti-Iran train. Under Trump, it’s a train that’s crashing through to China. All of this — everything — is in violation of the U.S. Constitution’s two-thirds-of-Senate clause. U.S. foreign policies are established, and set, almost entirely in secret, and without any public debate, even in the U.S. Senate. That’s the reality: a secretly imposed dictatorship. This is America’s reality, today.)
On December 11th of 2018, the economist Jeffrey Sachs bannered, at Asia Times, “Meng arrest a huge provocation to China”, and he said:
The context of the arrest matters enormously. The US requested that Canada arrest Meng in the Vancouver airport en route to Mexico from Hong Kong, and then extradite her to the US. Such a move is almost a US declaration of war on China’s business community. …
The US rarely arrests senior businesspeople, US or foreign, for alleged crimes committed by their companies. Corporate managers are usually arrested for their alleged personal crimes (such as embezzlement, bribery or violence) rather than their company’s alleged malfeasance.
Yes, corporate managers should be held to account for their company’s malfeasance, up to and including criminal charges; but to start this practice with a leading Chinese businessperson, rather than the dozens of culpable US CEOs and CFOs, is a stunning provocation to the Chinese government, business community, and public.
Meng is charged with violating US sanctions on Iran. Yet consider her arrest in the context of the large number of companies, US and non-US, that have violated US sanctions against Iran and other countries. In 2011, for example, JPMorgan Chase paid US$88.3 million in fines for violating US sanctions against Cuba, Iran and Sudan. Yet chief executive officer Jamie Dimon wasn’t grabbed off a plane and whisked into custody.
And JPMorgan Chase was hardly alone in violating US sanctions. Since 2010, the following major financial institutions paid fines for violating US sanctions: Banco do Brasil, Bank of America, Bank of Guam, Bank of Moscow, Bank of Tokyo-Mitsubishi, Barclays, BNP Paribas, Clearstream Banking, Commerzbank, Compass, Crédit Agricole, Deutsche Bank, HSBC, ING, Intesa Sanpaolo, JP Morgan Chase, National Bank of Abu Dhabi, National Bank of Pakistan, PayPal, RBS (ABN Amro), Société Générale, Toronto-Dominion Bank, Trans-Pacific National Bank (now known as Beacon Business Bank), Standard Chartered, and Wells Fargo.
None of the CEOs or CFOs of these sanction-busting banks was arrested and taken into custody for these violations. …
Quite transparently, the US action against Meng is really part of the Trump administration’s broader attempt to undermine China’s economy by imposing tariffs, closing Western markets to Chinese high-technology exports, and blocking Chinese purchases of US and European technology companies. One can say, without exaggeration, that this is part of an economic war on China. … They certainly have nothing to do with upholding the international rule of law.
The US is targeting Huawei especially because of the company’s success in marketing cutting-edge fifth-generation (5G) wireless technologies globally. …
Sanctions regarding non-national parties (such as US sanctions on a Chinese business) should not be enforced by one country alone, but according to agreements reached within the United Nations Security Council. In that regard, UN Security Council Resolution 2231 calls on all countries to drop sanctions on Iran as part of the 2015 Iran nuclear agreement. Yet the US – and only the US – now rejects the Security Council’s role in such matters.
Michael Moore’s latest documentary film, Fahrenheit 11/9 (not to be confused with his 2004 Fahrenheit 9/11) documents that throughout the career of Donald Trump, he has been racist in his actions, even where he wasn’t also racist in his explanations of his actions. Moore also documented there the full participation of Trump’s predecessor, President Obama, in the Republican Michigan Governor Richard Snyder’s having caused and then covered up the lead-poisoning of Flint Michigan’s children, who are overwhelmingly Blacks. However, with Obama, the contempt appears to have been against the poor, whereas with Trump, there is, in addition to that classism, clearly a hatred of racial and ethnic minorities. That’s perhaps the major difference between the two men.
Could it then be that Trump’s now-indubitable racism is part of his sense of “Make America Great Again” (the alleged basis of his trade-policies)? The Republican Party says that it’s not, but they also deny that Trump is a racist, which now clearly is a false allegation about him — he certainly is a racist.
How much more about America’s foreign policies might Trump’s deep-seated white-supremacist racism be affecting those policies — especially trade-policies (and this includes, of course, economic sanctions)?
Given the evidence that’s presented in Moore’s documentary, his racism has been expressed — in his actions — against Blacks, and it has also been widely expressed, even also verbally, against Hispanics, and, perhaps even more blatantly, against Muslims (except not against U.S.-allied aristocracies, such as the Saud family, who own Saudi Arabia).
In keeping with the majority of America’s Christians, Trump is not racist against Jews. He even is largely financed by Jewish billionaires, such as the Israeli Sheldon Adelson. But whether he is racist against Chinese is, as of yet, an open question. But now, China’s Government has raised the issue.
The Chinese Government is certainly not going beyond the bounds of the evidence and of logic, to raise this question.
Furthermore, Sachs’s own statement against Trump on this matter is actually a damnation against not only Trump but also against all recent U.S. Presidents and their Administrations, when Sachs said, “Yes, corporate managers should be held to account for their company’s malfeasance, up to and including criminal charges; but to start this practice with a leading Chinese businessperson, rather than the dozens of culpable US CEOs and CFOs, is a stunning provocation to the Chinese government, business community, and public.” Sachs was saying there that, up till the present time, it has never been the case that “corporate managers” are “held to account for their company’s malfeasance, up to and including criminal charges.” He is there alleging that the only, or virtually only, people who are in prison in the United States, are people who are not “corporate managers” who themselves carried out, or rewarded or incentivized their employees to carry out, “their company’s malfeasance.” Only lower-level people are subjected to any significant imprisonment in the United States, no matter how corrupt the mega-corporations are. He is saying that America, which has the world’s highest percentage of people in prison, allows “corporate managers” to perpetrate, and to reward their employees for perpetrating, “criminal” acts. So, although America is an incredible police-state regarding its poor (and the Moore film also copiously displays that fact) Sachs, there, is saying that “corporate managers” in the United States are actually above the Law. That’s a remarkable admission from him — and it’s true. For the aristocracy, America is no police-state at all, except one that protects them and their privileges — privileges both legal and otherwise, both in prison and on the outside.
Another meticulously researched nonfiction movie, this a top-quality “docu-drama,” is the 2014 Kill the Messenger, about how the CIA was caught organizing and protecting narcotics kingpins and using kickbacks from this multibillion-dollar-per-year illegal business to finance off-the-books foreign regime-change operations, which are too costly to be funded merely in the official ways. The same U.S. Presidents who were famously waging “The War Against Drugs” were secretly having their CIA use the illegal narcotics trade in order to pump up up their regime-changes abroad, to serve America’s billionaires’ interests. And then the mainly Blacks who became victimized by, and who participated in, this trade got slammed into prison for it, while their CIA-cooperating bosses did not. This movie is a cult classic amongst investigative journalists, because it shows how the CIA destroyed and perhaps murdered the great investigative reporter, Gary Webb, who revealed the scandal. America’s major ‘news’-media fired him and never allowed him ever again to work for them. Then, once Webb’s career was destroyed by that blacklisting of him on the part of the ‘news’-organizations, and he was in obscurity, he died mysteriously with two bullets in his head, and few among the public even heard about the murder, at the time. It seems that Webb never got to know that the CIA’s narcotics trafficking kickbacks had begun with the CIA’s first-ever coup, which was in 1948 Thailand and installed there a general who was the lynchpin for the southeast Asian narcotics network and who helped establish, with Nugan Hand, the CIA’s future dependence upon drug-trafficking. So, both regime-change and narcotics-trafficking were joined together right at the CIA’s very start. But Gary Webb reported only about the Reagan-era part of this longstanding (if not permanent) CIA system. And this was the first time that any part of this seedy history became publicly known (to the extent it did, at all).
It’s not merely Trump, and Moore’s documentary made clear that Obama was just as psychopathic against the poor as Trump is, though slick enough to hide it, even from the people who despise Trump for his racism.
America’s Deep-seated and Almost Universal Bigotry
On May 12th, Politico headlined “‘A dream ticket’: Black lawmakers pitch Biden-Harris to beat Trump”, and reported that:
The Congressional Black Caucus may have found an answer to its Joe Biden dilemma: Vice President Kamala Harris.
Some black lawmakers are agonizing over whether to back Biden or two members of the close-knit caucus — Sens. Harris and Cory Booker — who are also vying for the White House, according to interviews with a dozen CBC members.
But with the former vice president jumping out to a huge, if early, lead in the polls, several CBC members are warming to the idea of a Biden-Harris ticket to take on President Donald Trump.
“That would be a dream ticket for me, a dream ticket!” said Rep. Lacy Clay (D-Mo.). “If she is not the nominee, that would be a dream ticket for this country.”
Harris is everything the 76-year-old Biden is not. The freshman senator from California is younger, a woman and a person of color. …
America’s billionaires — who love it when the public are so obsessed with “Blacks versus Whites” or “women versus men” or other such distinctions amongst the public — hire politicians and ‘news’-media that play up to those distinctions instead of to themselves versus the public, because this way the public will accept those billionaires’ controlling the government — as they do.
Blacks are just as bigoted as Whites, and women are just as bigoted as men — and that goes also for Jews, Christians, Muslims, and every other distinction within the public — every other rage by the public, that’s being redirected away from the billionaires (who virtually own the government) to being instead against some mass of the public who DON’T control the government, and who AREN’T the cause of this country’s massive economic inequalities of opportunity, and who DON’T benefit from extending the American empire by bombs (or otherwise) to Afghanistan, and Iraq, and Libya, and Syria, and Iran, and Venezuela, and Ukraine, and Russia, etcetera.
Therefore: the first question that should be asked of every Democratic Presidential candidate isn’t (like it is) “man or woman?” or “Black or White?” or “Muslim or Christian?” or anything like that, but instead: Did you vote for the invasion of Iraq, and of Libya, and for economic sanctions (which are the first step toward declaring a nation officially as being an ‘enemy’ and thus the first step toward war) against Iran, and Syria, and Venezuela, and Russia?
Those international hostilities are just great for the billionaires’ corporations, such as Lockheed Martin, but they bring billions to the billionaires and nothing but increased taxes and death and disabilty to the public and to our soldiers — and vastly worse to the people who live in the tragic lands where we are sanctioning or invading, or doing regime-change by means of coups. So: they hire the distractors.
This isn’t to say that Trump isn’t a racist, but it’s about how the billionaires’ Democratic Party agents who are in Congress deal with this in such a way that the racist distractionism is on both sides and drowns-out any authentic progressivism (that being what the billionaires of both Parties fear). Part of progressivism is an opposition to regime-change wars — international dictatorship (including not only invasions but also the earlier stages: economic sanctions, and coups). The U.S. violates international law whenever it does those, and it does the vast majority of the ones that are done. The U.S. is thus the last nation in the world that should be pontificating to other countries. Whenever the U.S. Government does it, we should all be ashamed of it.
So: the billionaires need the distractionaires.
The Congressional Black Caucus, according to Fact Check, as posted in 2008 and never since revised, “has never had a white member in its 36-year history” (and, today, that would be never in its 47-year history), so that if for example Bernie Sanders or Pete Buttigieg or maybe even the warmongering Joe Biden himself, were to apply to join and then be turned down by them, and this were to become public, then the resultant bad publicity for that Caucus would likely reduce, instead of increase, that candidate’s standing with black voters. Consequently, he probably won’t even apply to join.
In any case, being a member of a victimized group doesn’t mean that one is less bigoted than other groups are. And who is to say that Americans weren’t bigoted against Iraqis when we did to them the catastrophe that we did?
A More Nakedly Aggressive United States
Of all the instability and unrest the US has been accused of fomenting over the last three years, no other example comes close to the lengths the US has gone to in its unilateral attempt at isolating Iran. Long accused by Russia and other major powers as the leading cause of instability in the Middle East, the recent escalation of tensions between Iran and the US forms part of a wider more troubling trend. This has included the US ratcheting up tensions with both friends and foes alike such as the escalating trade war with China, calls for regime change in Venezuela and the estrangement of its allies across both the European Union and NATO.
The last bit, regarding the US’s growing differences with the EU’s major powers such as France and Germany is also to a large extent directly linked with its hardline stance on Iran. This is evident in the clearly divergent stances both the US and EU have taken regarding Iran’s Nuclear program. President Trump’s unilateral withdrawal from the Joint Comprehensive Plan of Action (JCPOA) last year had brought about considerable shock and dismay amidst European powers that had spent years negotiating the agreement with Iran alongside the US. Signed back in 2015, the JCPOA had set a historic precedent in international diplomacy, garnering support from China and Russia as well as the US, UK, France, Germany and the EU. Based on years of painstaking negotiations it was widely hailed as presenting a successful model for Nuclear Arms Control and non-proliferation.
In fact, a number of experts had hailed the JCPOA as being even better than the Nuclear Non-Proliferation Treaty (NPT) in a number of ways. Its emphasis on monitoring other research and attempts at nuclear weaponisation beyond the involvement of nuclear materials was a major step in further expanding the role and scope of the IAEA’s monitoring mechanisms. These same mechanisms which based on the consensus of world powers have been successful in both monitoring and limiting Iran’s attainment of Nuclear weapons capability. The only exception has been the United States, and particularly the Trump White House that has made it a policy imperative to undo the years of work put in by both former US President Obama and Secretary of State John Kerry.
President Obama had even quite recently publicly lamented how reneging on the JCPOA not only undermined the United States credibility as a negotiating partner, but also dismantled a whole non-proliferation mechanism that was to prove crucial in addressing the growing threat from North Korea as well. As apparent in the failure of the recent talks between the US and North Korea in Vietnam, the US’s seriousness and commitment to the non-proliferation regime has been openly questioned as it continues to prioritize its own geo-political imperatives. Its ‘maximum pressure’ campaign on Iran, which is flirting dangerously with yet another large-scale military conflict involving US armed forces, threatens to undo the last decades’ painstaking rollback of US troop deployments throughout the Middle East.
Since the end of the Cold War, the US’s unilateralism and more maximalist approach was never in question considering its series of interventions particularly in the Middle East. There was however a semblance of unity and International leadership which either under the aegis of the UN or NATO still more or less carried the garb of a multi-lateral consensus. That instead of simply employing naked aggression as accused of by its adversaries, the US was justified by its ideology and the success of its international diplomacy. This perhaps was best and most positively evident in the JCPOA, which had brought all the world’s major powers into a concerted agreement on one of the world’s most pressing issues, namely Nuclear Proliferation.
However, as the Trump administration beats its war drums to the tune of nothing short of a regime change in Iran, there is most definitely a marked difference in how the US has previously built its cases for military intervention in the Middle East. In the absence of any international support from its partners, or in the lack of any overarching ideal based on non-Proliferation or plain old human freedoms (à la Iraq), the recent case for the US military intervention in Iran appears outright indolent if not unjustified as has mostly been the case with US hegemony over the last few years.
The crisis in Venezuela and its strategic significance
Venezuela’s economy – in a country that has better oil reserves than Saudi Arabia and Iran – began with the OPEC oil price crisis, when Chavez was still alive, until the heavy fall in oil prices in 2013.
The social spending of Venezuelan “Bolivarianism” was very high and a country living on oil permanently needs stable and growing markets. This is inconceivable with the current dislocation of strategic roles within OPEC and in the context of the struggle between Iranian Sunnis and Shiites.
Saudi Arabia will decrease production as soon as prices fall – and this will be the rule for everyone.
With Maduro, the primary choice for oil – i.e. Venezuela’s true economic policy -has remained in the wake of Bolivarianism. Oil resources, however, have fallen to less than half of those recorded during the Chavista boom and inflation has quickly grown to such a point that it is currently the largest in the world. It reminds us of the Weimar Republic and for the same reasons. The State of Caracas prints money with the same criterion with which newspapers in crisis print more copies.
At the beginning of the Chavista era, the inflation rate was already 29.5%. In 2005, when the oil market was still bullish, the inflation rate dropped to 14.4% instead.
Eight years after the former city bus driver in Caracas, namely Chavez, had risen to power, food prices in the capital city were nine times higher than at the beginning of Chavez’ new Bolivarian regime, while salaries had decreased by 40%.
The full nationalization of the oil company PVDSA was the first step that Chavez made down to the road for total economic disaster.
Currently the oil companies operating in the Orinoco Basin – which is one of the largest in the world – do no longer make the necessary investment to make extraction possible, and nowadays oil extraction has leveled off at merely one million barrels a day.
Certainly, we need to consider the US sanctions on exports, but extraction could still halve down to half a million by the end of 2019.
Companies such as Malaysia’s Petronas and even the Russian Lukoil already left Venezuela in 2014. The Iranian company Petropars did the same in early 2015 and PetroVietnam in late 2015. Finally Exxon and Conoco had to leave quickly under the threat of Venezuela carrying out a punitive nationalization, with both companies’ related and immediate starting of formal proceedings before the international courts.
Moreover, there is no legal framework – not even in Venezuela-delimiting possible operations, in the case of ongoing confiscations of foreign capitalists’ assets or of nationalizations. Hence those who remain, paying bribes left and right, obviously do not extract the amount of oil they could. This also applies to the Venezuelan non-oil economic sector.
Even PDVSA – the always open coffer of Bolivarianism – has reduced its oil production from 5 million barrels a day to the current one million barrels a day. Later, with the embargo imposed by the United States, this trend will continue.
The national oil company has long been heavily indebted with China and Russia, as well as with other countries, such as Iran.
China has already requested the quick and full payment of its credits. China is not used to the structural inefficiency of Latin American countries.
It is a process that China has started also with Brazil.
Furthermore, Russia has already granted a rescheduling of its Venezuelan debt, which is already three billion and seven hundred million US dollars.
Obviously, from a strategic viewpoint, Russia is interested in maintaining its own area of influence in a Latin American continent that, after Bolsonaro’s victory in Brazil, is fully siding with President Trump’s policies.
Hence, where possible, it is subject to Russian specific pressures.
As can be easily imagined, Venezuela’s weight in the OPEC area is now less than minimal- and this creates further difficulties.
But the entire oil producers’ organisation, whose relations of its Sunni area with Trump’s America are currently very strong, has now a fixed rule we have already clarified: cutting production when the oil barrel prices decrease – exactly the opposite of what Venezuela currently would like to do.
Moreover, Venezuela keeps on exporting only 800,000 oil barrels a dayto the United States.
Here not only geopolitics, but also the first global commodity, namely oil, has a role to play in this respect.
For the United States, buying oil from Venezuela means trying to counter Russia’s weight – although with increasing difficulty.
The United States clearly sees how Russia and China still support Venezuelan Chavism – also to recover their huge credits. Hence a geopolitical rather than economic clash between opposing blocks emerges in the country with the largest oil and gas reserves in the world.
Inter alia, with shale oil and gas the United States is becoming a net oil exporter. Hence it is ever less interested in the fate of the countries that were once powerful suppliers, but are currently only tired competitors.
Even the deep crisis of Madurism could favour the US oil and natural gas export market. Hence there is not much desire in the USA to solve the Venezuelan crisis, but only the desire to prevent Venezuela from choosing Russia, Iran, China or even the crazy and silly European Union.
Moreover, the United States has an extreme need for high oil barrel prices, so as to recover the extraction costs which are still higher than the traditional ones.
Hence, paradoxically, a regional production crisis near the US territory could even be good for the United States in the medium term.
Therefore, apart from the usual creation of petrodollars, the United States is entirely in favour of an increase in the oil barrel price- and hence indirectly in favour of tension in Venezuela.
The United States does no longer even need Venezuelan oil – as was the case in the past.
There is no more room for Venezuela to even export its oil to the Caribbean at the usual low prices – a clear sign of an old and now impossible local hegemony.
Hence, as is currently the case, the Hezbollah – currently guarding also Maduro – set in, while the Cuban intelligence services have defined a precise program for opposing Guaido’s possible “counter-revolution” and also the Russian contractors of the Wagner group are present, in force, in the Venezuelan territory to defend the wells and the other nerve centres of the former Chavista regime and, currently of Maduro’s regime, for which Russia has no esteem.
The relationship between Hezbollah and Chavez was very complex – and it is still so currently with Maduro.
At the beginning of Guaidò’s campaign against Maduro, the members of the Lebanese militia – that was Imam Khomeini’s “eye – hoisted a poster with Chavez’ and Maduro’s faces alongside that of Hassan Nasrallah, the leader of the Lebanese Shiite militia.
Furthermore, the Hezbollah were the first to advertise and make public the US hidden presence in favour of Guaidò in Venezuela.
The reason for this particular relationship between the pro-Iranian Lebanese Shiites and the “Bolivarian” regime is simple and concrete: right from the start, Chavez and Maduro gave carte blanche for the laundering of Hezbollah’s secret funds in Venezuela, especially through drug trafficking activities.
Furthermore, the Lebanese group operating in Venezuela collected essential data on international crime, which was useful exactly for Hezbollah to find its place into the global cycles for money laundering and acquisition of illegal funds.
Even Cuba – which, despite the all-too-touted “liberalization” of the post-Castro regime, kept on serving as air passage of drugs to the United States – used the Venezuelan “Bolivarians” for money laundering activities, as well as a basis for the operational shift of South American drugs to the ever more drug-addicted United States.
Some Hezbollah’s people also have important positions in Maduro’s government.
Just think about Tarek el Assaimi, the 28thVice-President of Venezuela and later Oil Minister, who currently “covers” many of the Lebanese from Hezbollah that very easily acquire a Venezuelan passport.
El Assaimi has also been reported to the US Drug Administration since 2017.
Why does Iran need Venezuela?
Firstly, to avoid US trade restrictions. Iran sees the US support for Guaidò as a direct threat to its interests in Latin America, which are manifold and very widespread.
Coincidentally, the Venezuelan gold – that was said to have so far been exported to Turkey for security reasons -is currently heading for Iran.
Cuba’s drug system has been essential to maintain Castro’s regime as early as the time of Ochoa, who had supported the Medellin cartel in the cocaine shipments to the United States. At the time, however, the proceeds were in the banks of Noriega, the President of Panama who laundered 80% of Cuban illegal cash flows.
Now the system works in favour of Venezuela, which no longer has the financial controls that were previously unavoidable in a fully pro-American country like Panama.
Certainly, for Cuba, the Medellin cartel’s drug transfer to the United States was also a purely political operation to plague the American society and make it powerless and unproductive.
It has largely already succeeded to reach this goal.
After Noriega’s fall, that network has largely moved to Venezuela and is currently operating at full capacity and in full swing.
Meanwhile, the Cuban intelligence services were directly connected to the Colombian FARC and later to the Venezuelan security forces, formerly regional leaders of drug trafficking at the time.
As is the case today, since then the Cuban secret services have trained the Bolivarian intelligence services. In fact, at the time, the former eliminated most of the Venezuelan opposition to Chavez.
Indeed, after the Cuban training, Chavez’ intelligence services established the Cartel de los Soles(the “Cartel of the Suns”) and in fact the name comes from the “sun” insignia of Venezuelan generals.
Currently, it is precisely corruption and the illegal drug trafficking led by Maduro’s generals to directly support the regime and to strengthen and fund the fight against Guaidò’s forces.
The Venezuelan narcomilitaries know all too well that, if they lose power, they will soon be judged by some US or international court.
This kleptocracy removes from Venezuela’s coffers an officially declared sum worth around 70 billion US dollars, but some Latin American security services speak of about 300 billion US dollars taken away for paying bribes inside the kleptocratic regime in Venezuela.
Hence an inflation triggered and maintained only by the criminal kleptocracy of those who also organize a highly lucrative drug trafficking, even within the regime and the whole country.
Furthermore the controls on money and prices, introduced by Chavez in February 2003, quickly turned Venezuela into a Mafia-State.
At the time of the founder of “Bolivarianism”, the illegal system created by those price controls, was even larger than it currently is.
It should be remembered that in 2002 a military coup ousted Chavez from office for 48 hours only.
With a view to avoiding the return of the military, Chavez delegated most of the State functions to criminal gangs – and also to the very inefficient Armed Forces.
The illegal gangs were mainly two, namely the Colectivos and the Pranes.
The Colectivos took power mainly in the suburbs of Caracas.
Currently, despite having been supported and often created by the government, the Colectivos are not answerable to anyone – much less to the opposition.
The democratization of kleptocracy.
They live mainly on extortion and drug dealing.
Currently, however, they have been essential to repress Guaidò’s insurgency and make some areas of Caracas support Maduro again.
The Pranes are instead criminal gangs operating within the Venezuelan prison system.
However, they have also expanded outside prisons, in collaboration with the so-called megabandas.
The “peace zones”, reached after a long negotiation between criminal gangs and what remains of the police, are just eight in Venezuela.
Nowadays, the most widespread illegal activities among criminal gangs are those relating to the smuggling of subsidized fuel to Brazil and Colombia.
There is an ever more limited market for this fuel in the countries of arrival and an increasing number of buyers in Venezuela, which experiences the paradox of being a huge oil producer, but with empty pumps for its citizens.
Other key sectors, left in the hands of the bandas, are the smuggling of food and pharmaceutical products. This was the reason why the Red Cross aid could not work at the beginning of the crisis.
In Caracas people die very easily: 89 murders per 100,000 people a day.
In 2017 there were 26,616 murders – over 5,535 of which carried out by the security forces, while the others were carried out by the gangs of the Operativos para la Liberacion del Pueblo.
A network created exactly by Maduro.
Furthermore, as already seen, Venezuela is the favorite base for the Colombian narcocrime, while the hungry e Venezuelan proletariat is pushed right out of the cities of Bolivarianism towards Colombia, where the Venezuelan poor people become members of the “cartels” or victims of them.
In just one year, the last for which we have complete statistics, namely 2017-2018, at least one million Venezuelans fled to Colombia alone, with a rate of at least 37,000 citizens of the Bolivarian State who crossed the border with the territory of Bogotà everyday.
Panama, which now has no interest in the survival of Maduro’s “Socialist” regime, also included 37 “big shots” from the current Venezuelan regime into a “high-risk list” for money laundering, including Maduro himself, as can be easily imagined.
That list also included Diosdado Cabello, the No. 2 of Venezuela’s regime and Party, as well as other figures, well known to the Venezuelan public, such as Gustavo Gonzales Peres, the former Head of the Bolivarian Intelligence Service.
Panama is also part of the “Lima group”, an organization of 14 Latin American countries in the region, which is above all opposed to maintaining the Maduro system in Latin America.
Even the European Union – with its well-known quick decision-making in foreign policy – imposed personal sanctions on figures such as Interior Minister Nestor Revarol, the President of the Supreme Court, Maikel Moreno, and even the Head of the External Intelligence Service, Gustavo Gonzales Lopez and, finally, to the aforementioned No. 2 of the regime’s Party, Diosdado Cabello.
They can no longer travel to EU countries and their bank funds deposited there will be frozen.
The appeal for a general upheaval that interim President Juan Guaidò had announced on the morning of April 30th – together with the recently-released military Leopoldo Lopez, and with a military group from La Carlota air base – seems to have failed. In a country like Venezuela, the “Arab Spring” model does not work at all.
US intelligence services’ greater intellectual imagination would be needed.
Meanwhile Lopez has recently taken refuge at the headquarters of the Spanish embassy in Caracas, while the Spanish government has declared it will never release Lopez to the Maduro government.
25 other rebel military applied for asylum at the Brazilian embassy, but it should be noted that Lopez had previously addressed to the diplomatic offices of Chile, although he declared – after being accepted by the Spanish diplomacy in Venezuela – he had never asked for political asylum.
Nevertheless many Venezuelans have anyway agreed to take to the streets, where two other young people have recently died, thus rising to 55 the number of victims of Maduro’s repression since the beginning of this year.
Meanwhile, the opposition denounced a toll of other 74 severely injured people, followed by 168 arrests, including at least a dozen journalists.
Meanwhile Guaidò goes from one hiding place to another, but he was seen by the crowd on May 1stwhen he called for a strike of all Venezuelan workers in the short term.
Maduro responded to Guaidò’s call to strike only the day after, but it was a clearly recorded TV broadcast.
Shortly afterwards, in his official capacity as Trump’s National Security Advisor, John Bolton – an old heir to the neocon foreign policy – informed the international media that Defense Minister Valentin Padrino Lopez, Supreme Court President Maikel Moreno and the Director of the DG for Military Counterintelligence, Ivan Hernandez Dala, had negotiated directly with the USA to oust Maduro.
Instillation of suspicions in Maduro’s elite, or also truth? Hence evident psychological war or US indecision between the choice of staging a coup inside Maduro’s Party, with some US trusted elements, or the reaffirmation of US trust in Juan Guaidò?
Mike Pompeo, Trump’s Secretary of State and former CIA Director, also stated that Maduro was already on a plane to Cuba, immediately after the May 1st demonstrations, but that Russia harshly ordered him to stay in Venezuela.
Could the reason underlying the US support to Guaidò’s attempted coup – which is now not matched by the same support it had gained at the beginning of the insurgency – beoil, as usual?
With the oil barrel price around 50-60 US dollars, the price of Venezuelan oil is still acceptable, but we are talking about heavy hydrocarbons, which need successive and obviously expensive further refining.
Exxon-Mobil is still trying to acquire the Essequibo extraction area, where sovereignty over it is still being discussed between Venezuela and Guyana.
In Venezuela, there are still 15 billion barrels a day of not extracted oil, in addition to as many as 42 trillion cubic feet of natural gas.
It should be considered that Venezuela is still the second country – if not the first, depending on explorations- in terms of oil and gas reserves available.
The USA, however, is mainly exploiting its national basins and is selling natural gas and oil, by sea, even to some European countries.
Hence, currently for the United States the issue of Venezuelan oil and gas is not to acquire them – although the oil barrel production cost in Venezuela is still lower than the shale oil and gas of the US Permian basin – but above all to prevent those oil and gas reserves from being used by China and the Russian Federation.
In fact, in the years of the sharp drop in the oil barrel price, until 2016, Maduro chose to assign as much as 49.9% of a PVDSA subsidiary, namely CITGO, to Russian Rosneft – in exchange for a loan against the transfer of the company shares to the tune of 1.5 billion dollars directly to the Venezuelan State.
Also Russia, however, is a net exporter, and Goodness knows how powerful that country is in terms of oil and gas, with a primary focus of its markets on the EU.
In this case, however, for Russia the Venezuelan oil could be a strong way to put pressure on the United States – exactly due to the lower price of the Venezuelan crude oil – with a view to reducing the negative impact of the US (and EU) sanctions on Russia for the Ukrainian issue.
Hence, by spending a relatively little sum, namely 1.5 billion US dollars, Russia became the true arbiter of Venezuelan oil to use it as a leverage over the United States – indeed, really for purposes of blackmail against the United States.
In fact, it is by no mere coincidence that, in February 2018, a group of US investors of unclear complexion tried to buy back the Russian shareholding of CITGO, asking the Venezuelan government to accept payment to them of the remaining Russian loan and also asking Rosneft to transfer the remaining amount of the loan already granted in Venezuela to the new CITGO.
Needless to say, the offer was declined.
As always happens in these cases, the United States is also operating with economic pressures and embargoes.
It is imposing a further embargo for Petroleos de Venezuela SA, namely the whole PDVSA, which legally began in early January 2019.
This means that the proceeds from Venezuelan oil will be very limited, as if Venezuela were an economic hostage.
With a view to favouring – even among the elites of the “Maduro system” – the shift to the US camp, instead of remaining within the sphere of Russian economic control (and of Iranian control for the non-oil criminal economy).
President Trump’s desire to invade Venezuela is now well-known to the international public, at least based on his statements of June 2018, when, at a meeting in the Oval Office, President Trump expressed that clear desire to the then Secretary of State, Rex Tillerson, former President of Exxon-Mobil, and also to the then National Security Adviser, General MacMaster.
It should be clarified that neither of the two advisors was favourable to the operation.
In late 2018,Maduro – increasingly under pressure as a result of the international economic crisis and of the huge internal crisis, particularly heavy for the oil-dependent countries – gave to the companies of the strong Russian mining sector access to the Venezuelan gold mines – those that had created the myth of Eldorado in Spain in the seventeenth century.
In Venezuela there are also mineral reserves of nickel, diamonds, iron, bauxite and aluminum.
Clearly, however, Latin America’s new strategic and political positioning – especially after Bolsonaro’s victory in Brazil – is fully in favour of the United States and, specifically, of President Trump, while the assets in favour of the Russian Federation are diminishing.
This means that Russia, along with its traditional allies, such as China, will keep Venezuela very close, especially for geopolitical purposes and ever less for strictly economic ones.
While the real strategic variable will soon be China. Will it accept to participate in Russia’s very interested support for Maduro’s regime, taking what remains of the Venezuelan economy, or will it accept the US proposal of taking a large part of Venezuela after breaking China’s ties with Russia, at least in Latin America?
Advanced economies still have plenty of work to do to reach Sustainable Development Goals
With only 11 years left to achieve the 2030 Sustainable Development Goals, some of the most economically advanced countries have...
Is Iran Testing Trump With Little Attacks in Iraq, Saudi Arabia, and the Persian Gulf?
Authors: Anne Speckhard, Ardian Shajkovci The sound of an explosion echoed through the Green Zone on Sunday night around 9:00...
Impressions from South Africa’s election
South Africa’s recent general election has bucked the international trend towards populism by consolidating its democracy at the political centre....
A Dozen Interesting Facts About Four Seasons Hotel Bengaluru
1. Located in North Bengaluru, the city’s growth corridor, Four Seasons Hotel Bengaluru can be reached in less than 30...
US geopolitical interests offer Iran sanctions loophole amid mounting tension
The Indian-backed Iranian port of Chabahar has emerged as a major loophole in a tightening military and economic noose and...
Data Collaboration for the Common Good
Delivering on the promise of public-private data collaboration for the common good requires attention in five priority areas according to...
Guatemala partners with UNWTO to launch Sustainable Tourism Observatory
The World Tourism Organization (UNWTO) has welcomed Guatemala into its International Network of Sustainable Tourism Observatories (INSTO). The Central American...
East Asia3 days ago
Power Projection of China
Religion3 days ago
Will Islamophobes take over democracies in the West?
Reports3 days ago
SMEs are driving job growth, but need higher investment in skills, innovation and tech
South Asia2 days ago
The Durand Line Issue
Middle East2 days ago
A survey of Arab youth highlights gaps between policies and aspirations
Middle East2 days ago
Iran vs. US: Bracing for war?
Environment3 days ago
World Bank to Strengthen Human Capital and Climate Resilience in Haiti
Europe3 days ago
How Romania’s battles over corruption hamstrung economic progress