Archive for the Wall Street Category

Casualties mount in U.S. proxy war in Yemen [Workers World]

Posted in Afghanistan, Bahrain, Bourgeois parliamentary democracy, CIA, Egypt, EU, European Union, Genocide, Iran, Iraq, Libya, Obama, Pentagon, Saudi Arabia, Syria, US "War on Terror", US drone strikes, US imperialism, USA, Wall Street, Yemen on April 17, 2015 by Zuo Shou / 左手

By Abayomi Azikiwe posted on April 12, 2015

Despite daily airstrikes by Saudi Arabia since March 26, the Ansurallah (Houthis) fighters seized the presidential palace in the southern city of Aden the following week.

Subsequent reports claim that the Houthis occupying the palace were forced to retreat by military forces still loyal to ousted leader President Abdrabbuh Mansour Hadi. Saudi bombing of the area and air drops to Hadi loyalists are designed to halt the advances and consolidation of power by the Shiite Islam movement that is supported politically by Iran.

Casualty figures have increased as fighter jets deployed by Riyadh pound residential sections of cities and villages throughout the Middle Eastern state. Officials from the International Committee of the Red Cross say that the humanitarian situation is worsening daily; they describe horrendous conditions on the ground. Civilian residents are fleeing for shelter, further aggravating the overall social and economic crisis in the country.

Contested neighborhoods and commercial areas in Aden are littered with corpses, while the wounded flood into hospitals and clinics. Yemeni officials estimate that at least 185 people have been killed in Aden, while some 1,282 are wounded. Hospitals there have counted the figures of noncombatants since March 26, says al-Kheder Lassouar, Aden’s health department director. (BBC, April 5) Not counted are Houthis and loyalist forces who are also victims of aerial bombardments and gunshot injuries.

According to the BBC, casualties are much higher in various regions of the country. Clashes across Yemen have led to more than 500 deaths and some 1,700 injured since March 26, said United Nations humanitarian administrator Valerie Amos…

…In addition to the struggle between the Houthis and Hadi supporters, Al-Qaeda of the Arabian Peninsula and the Islamic State have reportedly entered the fray, seeking to carve out territory for further expansion.

* U.S. imperialism’s strategy in the region *

The Obama administration has said little about the current situation in Yemen. One hundred Special Forces along with diplomatic personnel were evacuated weeks ago.

Yemen was championed as a so-called “counter-terrorism success story” just months ago. Pentagon and CIA-backed airstrikes and drone attacks have killed many targeted Islamic leaders and civilians, who have been in the vicinity of Washington-ordered aerial assaults.

President Hadi’s ascendancy to power was the result of Washington’s direct intervention in 2011 and 2012, which sought to manage the transition from Ali Abdullah Saleh’s rule. Nonetheless, in today’s struggle, forces allied with Saleh have joined the Houthis in opposition to the Saudi air strikes and interference in Yemen’s internal affairs.

The U.S. military has its hands full in Iraq, Syria and Afghanistan where wars of regime change and purported “democracy building” have gone awry. In 2011, the Obama administration initiated the destabilization and massive bombing of Libya, displacing Col. Muammar Gadhafi’s Jamahiriya political system, destroying national institutions, and causing dislocation and economic decline there.

Corporate media report that counterattacks by forces loyal to the Saudi-backed, ousted Hadi regime were bolstered by arms drops from Riyadh. They structure the struggle in Yemen as a proxy war with Saudi forces on Hadi’s side battling Iranian influence.

In fact, Washington is using its regional pro-Western allies to carry out bombings intended to bolster U.S. corporate, financial and strategic interests in the region.

Moreover, most of the weapons, including fighter aircraft utilized by Saudi Arabia and the Gulf Cooperation Council, made up of reactionary oil-rich monarchies, come from the U.S. and EU member states. The political independence exerted by Yemen’s Houthi movement is a concern of Washington and Wall Street, given their overall aim is to secure and expand U.S. interests on behalf of the super-rich.

Yemen is the poorest country in the Arabian Peninsula, but it borders wealthier oil-rich Persian Gulf states. The waterways surrounding Yemen, including the Red Sea and the Gulf of Aden, have strategic significance for U.S. imperialism regarding commercial shipping as well as military dominance.

* ‘Humanitarian’ interventions debunked *

Developments in Yemen, Bahrain, Egypt, Iraq, Syria and Libya illustrate clearly that there is no such thing as a “humanitarian” imperialist intervention. Conditions in all these states have worsened as a result of the so-called “war on terrorism” and disingenuous efforts to “build demo­cracies” in Africa and the Middle East.

Although majority-Democratic Party congresses elected in 2006 and 2008 and the Obama administration were sent to Washington with a mandate to end wars of aggression and work toward a sustainable economic revitalization in the U.S., they have failed to do so.

This starkly reveals the imperialist character of both dominant parties. Consequently, in the 2010, 2012 and 2014 elections, the Democratic Party’s electoral base among the working class and nationally oppressed expressed their opposition to these failed promises by staying away from the polls, with the exception of the re-election of Obama in 2012.

The peoples of the Middle East and Africa must rebuild their societies and national and regional institutions independent of imperialism. So, too, the working class and the oppressed inside the U.S. have no alternative other than to break with the Democrats and construct an independent movement, based on their political and class interests.

Excerpted by Zuo Shou

Article link: http://www.workers.org/articles/2015/04/12/casualties-mount-in-u-s-proxy-war-in-yemen/

AIIB, a paradigm power shift [Xinhua]

Posted in Beijing, Brazil, BRICS - Brazil, Russia, India, China, South Africa, China, Early 21st Century global capitalist financial crisis' US origins, Economic crisis & decline, Economy, France, Germany, India, Italy, Malaysia, Pakistan, Russia, Singapore, South Africa, Taiwan, US imperialism, USA, Wall Street on April 2, 2015 by Zuo Shou / 左手

BEIJING, March 31 (Xinhua) — …As of 6 p.m. Tuesday, 46 countries had applied to be founders of the bank, but the United States and Japan have remained on the sidelines. The financial authority of China’s Taiwan said on Tuesday afternoon that the island has submitted a letter of intent on joining the mainland-proposed AIIB. Founders will be finalized on April 15.

TIMELINE

The bank was proposed by Chinese President Xi Jinping in October 2013.

A year later, and 21 Asian nations, including China, India, Malaysia, Pakistan and Singapore had signed an agreement to establish the bank, headquartered in Beijing.

On March 12, 2015, Britain applied to join the AIIB as a prospective founding member, the first major western country to do so. France, Italy and Germany quickly followed suit.

Other nations will still be able to join the bank after the deadline, but only as ordinary members.

Negotiations on the AIIB charter are expected to conclude in the middle of the year and the bank should be formally established by the end of this year.

BUILDING FOR SUCCESS

As its name suggests, the AIIB will finance infrastructure–airports, mobile phone towers, railways, roads–in Asia.

There is a yawning infrastructure funding gap in Asia. The Asian Development Bank (ADB) pegged the hole at about eight trillion U.S. dollars between 2010 and 2020.

The World Bank and Asian Development Bank are more focused on poverty reduction and their funds alone are insufficient to bridge the gap, according to Hans-Paul Burkner, chair of the Boston Consulting Group.

While both the ADB and World Bank focus on a broad range of development programs including agriculture, education and gender equality, the AIIB will concentrate on infrastructure alone. The IMF, World Bank and ADB have all welcomed the AIIB initiative and see room for collaboration

The bank will have an authorized capital [of] 100 billion U.S. dollars and the initial subscribed capital is expected to be around 50 billion dollars. Although hardly enough to meet demand, it will still be a helpful boost.

GOOD FOR ASIA; GOOD FOR ALL

As the first China-proposed multilateral financial institution that has included developed nations as members, the AIIB offers an opportunity to test China’s ability to play its role as a responsible country, analysts said.

The initiative followed years of frustrated attempts to reform the existing international financial institutions, which have failed to reflect the changing landscape of global economy.

The existing economic system, shaped by the Bretton Woods agreement seven decades ago, is dominated by western countries and increasingly unrepresentative of the world’s economic architecture. Since the global financial crisis, emerging markets are becoming the main development drivers. Asian countries now make up one third of the global economy.

As global economic power shifts to emerging markets, it is only fair that they should play a bigger role in global institutions. Burkner said, “if it is not happening, then it is important to create additional institutions which, to some extent, cooperate and compete with existing institutions.

“There will be cooperation and also some healthy competition with the ADB and the World Bank.”

Good for Asia; good for the world as a whole.

Jin Liqun, secretary general of the interim secretariat of the AIIB, regards the bank as a complement to, rather than a substitute for, the World Bank and the ADB. It will improve the existing international financial system, not overturn it, Jin said.

The AIIB is just the start. Jim O’Neil, coiner of the BRICs acronym and former chairman of Goldman Sachs Asset Management, believes there are plenty more areas where China needs to be drawn in.

With its Belt and Road initiatives, the AIIB and other entities (a joint development bank with BRICs partners Brazil, Russia, India and South Africa, for example) China is trying to make its own development beneficial to the whole continent.

After over three decades of fast expansion, benefiting from globalization and opening-up, China can now share the fruits of its development and build a “community of common destiny” through international and regional cooperation.

INTO THE UNKNOWN

Even after membership is finalized, many questions will remain. How will the AIIB be governed? What will be the decision-making process be? Wha t lending criteria will it adopt? Will its policies be transparent and address issues like the environment?

The answers to those questions will determine whether the bank stands or falls.

While details are pending, China has repeatedly stated that the AIIB will uphold high standards and learn from the best practices at existing multilateral financial institutions.

During an interview with Xinhua, Lou Jiwei said the bank will have a three-tier structure — a council, a board of directors and management, as well as a supervising mechanism to ensure sufficient, open and transparent policy-making.

The prime challenge for the AIIB is how to channel funds to the most productive projects while maintaining security of repayment.

Zhang Yuyan, chief of the institute of world economics and politics at the Chinese Academy of Social Sciences, a government think tank, believes that, since infrastructure projects usually have long funding cycles and great potential for waste, sustainable profitability will be the real test of the AIIB.

Rigorous consultation and skillful management to coordinate and balance various demands and interests among members will be of the essence, Zhang said. This will be challenging at the very least, with so many histories, cultures and development stages on show.

Edited by Zuo Shou

Article link: http://news.xinhuanet.com/english/2015-03/31/c_134114065.htm

Why U.S. rulers fear new Asian investment bank “AIIB” [Workers World]

Posted in Africa, Bill Clinton, Bolivia, China, China-US relations, Economy, Ecuador, France, Germany, IMF - International Monetary Fund, Indonesia, Italy, Japan, Liberia, Neo-colonialism, U.K., US imperialism, USA, USA 21st Century Cold War, Venezuela, Wall Street, World War II on March 28, 2015 by Zuo Shou / 左手

By Deirdre Griswold March 24, 2015

Britain, France, Italy and Germany have agreed to join China in establishing an Asian Infrastructure Investment Bank. China has already announced it will put up $50 billion in initial capital.

It is too early to say what role this bank will play in helping underdeveloped countries modernize their infrastructure. Negotiations among the principals on the bank’s structure and policies are expected to take place for at least a year. What will emerge cannot be predicted at this time.

But one thing is very clear: Wall Street and Washington are fuming over the fact that the European imperialist countries are joining in, despite strong U.S. pressure to stay out.

Criticism of the new development bank by the U.S. has begun, with government officials telling the media they fear it will undermine the “good work” done by the International Monetary Fund and World Bank, which, they say, have aided developing countries while imposing regulations to protect the environment and help the poor.

You’re choking on this outrageous lie right now? So are we.

Tons of both popular and scholarly analyses of these institutions, and especially of the “structural adjustment programs” they have forced down the throats of poor countries, show that the kind of “development” they foster has usually done just the opposite: stripped countries of needed government services, increased their indebtedness and hurt the environment, all to benefit the financial institutions of the imperialists.

Take the West African countries of Guinea, Liberia and Sierra Leone, for example, which have been going through the most horrific public health emergency caused by the spread of the Ebola virus. These countries are so poor that, even after Liberia declared an end to new cases, a televised news report on the return of a score of students to classes pointed out that their grammar school, which when full serves 1,000 students, has no electricity and no running water.

On Dec. 22, The Lancet, a preeminent British medical journal, published a commentary called “The International Monetary Fund and the Ebola outbreak.” It reads: “A major reason why the outbreak spread so rapidly was the weakness of health systems in the region. … Since 1990, the IMF has provided support to Guinea, Liberia and Sierra Leone, for 21, 7 and 19 years, respectively, and at the time that Ebola emerged, all three countries were under IMF programs. However, IMF lending comes with strings attached — so-called ‘conditionalities’ — that require recipient governments to adopt policies that have been criticized for prioritizing short-term economic objectives over investment in health and education.”

The authors add that “economic reform programs by the IMF have required reductions in government spending, prioritization of debt service, and bolstering of foreign exchange reserves.” In other words, recipient countries — which should be receiving reparations for all the wealth extracted from them by colonial rule — have instead been forced to cut back on health care, education and other services in order to pay interest on loans.

* Bretton Woods, the IMF and World Bank *

Why does the U.S. ruling class feel particularly threatened by this new China-headed development bank? Because U.S. banks have dominated the financial architecture of the capitalist world for decades. The U.S. emerged from World War II as the undisputed global industrial and financial powerhouse, while Europe and Japan were in ruins and all regions involved in the world war were suffering.

The intention of the U.S. imperialist ruling class to translate its military and industrial muscle into financial domination over the rest of the world was made clear even before the war ended, with the founding of the International Monetary Fund and the World Bank at the Bretton Woods Conference in 1944. This conclave in New Hampshire of the soon-to-be-victorious Allied powers was dominated by Washington and London. It established the “tradition” that the president of the World Bank would always come from the U.S.

One can read many critiques of these institutions. One was an interview by Greg Palast with Joseph Stieglitz, a former chief economist of the World Bank, member of Bill Clinton’s cabinet and chair of his Council of Economic Advisers who turned against his former bosses.

Stieglitz told Palast that when nations are “down and out, [the IMF] squeezes the last drop of blood out of them. They turn up the heat until, finally, the whole cauldron blows up.” He referred to these social explosions as “IMF riots,” pointing to what happened when the IMF eliminated food and fuel subsidies in Indonesia in 1998, when it made Bolivia increase water prices in 2000, and when the World Bank imposed a rise in cooking gas prices on Ecuador in February 2001. (“IMF’s Four Steps to Damnation,” The Observer, April 29, 2001)

In Guinea, Liberia and Sierra Leone, the people have tried to get rid of governments that served as tools of these imperialist-dominated financial institutions and have looked for other ways to climb out of poverty. In Latin America, the result has been ALBA (Bolivarian Alliance for the Peoples of Our America) — an alliance of countries, led by Venezuela, that is trying to break free of the stranglehold over their economies imposed by U.S. imperialism for nearly two centuries.

The anti-colonial revolutions that began in Asia in the 1930s and spread throughout the so-called Third World in the 1950s and 1960s drove out the structures of direct colonial rule. Bretton Woods was the answer of the imperialists: Keep the masses of people enslaved to the banks.

Washington’s objections to the new Asian Infrastructure Investment Bank have nothing to do with anything except the fear of U.S. capitalists that they could be losing their grip on what has been their main tool for world domination. As a backup, of course, they have the Pentagon, making the struggle against imperialist war ever more urgent.

Article link: http://www.workers.org/articles/2015/03/24/why-u-s-rulers-fear-new-asian-investment-bank/

“The Greek Tragedy”: Post-WWII imperialist domination of Greece – The Anti-Empire Report #137 [Williamblum.org] [

Posted in Anti-communism, CIA, Fascism, Germany, Greece, NATO, Nazism, U.K., US imperialism, USA, Wall Street, World War II on March 24, 2015 by Zuo Shou / 左手

Feb. 23, 2015

American historian D.F. Fleming, writing of the post-World War II period in his eminent history of the Cold War, stated that “Greece was the first of the liberated states to be openly and forcibly compelled to accept the political system of the occupying Great Power. It was Churchill who acted first and Stalin who followed his example, in Bulgaria and then in Rumania, though with less bloodshed.”

The British intervened in Greece while World War II was still raging. His Majesty’s Army waged war against ELAS, the left-wing guerrillas who had played a major role in forcing the Nazi occupiers to flee. Shortly after the war ended, the United States joined the Brits in this great anti-communist crusade, intervening in what was now a civil war, taking the side of the neo-fascists against the Greek left. The neo-fascists won and instituted a highly brutal regime, for which the CIA created a suitably repressive internal security agency (KYP in Greek).

In 1964, the liberal George Papandreou came to power, but in April 1967 a military coup took place, just before elections which appeared certain to bring Papandreou back as prime minister. The coup had been a joint effort of the Royal Court, the Greek military, the KYP, the CIA, and the American military stationed in Greece, and was followed immediately by the traditional martial law, censorship, arrests, beatings, and killings, the victims totaling some 8,000 in the first month. This was accompanied by the equally traditional declaration that this was all being done to save the nation from a “communist takeover”. Torture, inflicted in the most gruesome of ways, often with equipment supplied by the United States, became routine.

George Papandreou was not any kind of radical. He was a liberal anti-communist type. But his son Andreas, the heir-apparent, while only a little to the left of his father, had not disguised his wish to take Greece out of the Cold War, and had questioned remaining in NATO, or at least as a satellite of the United States.

Andreas Papandreou was arrested at the time of the coup and held in prison for eight months. Shortly after his release, he and his wife Margaret visited the American ambassador, Phillips Talbot, in Athens. Papandreou later related the following:

I asked Talbot whether America could have intervened the night of the coup, to prevent the death of democracy in Greece. He denied that they could have done anything about it. Then Margaret asked a critical question: What if the coup had been a Communist or a Leftist coup? Talbot answered without hesitation. Then, of course, they would have intervened, and they would have crushed the coup. 1

Another charming chapter in US-Greek relations occurred in 2001, when Goldman Sachs, the Wall Street Goliath Lowlife, secretly helped Greece keep billions of dollars of debt off their balance sheet through the use of complex financial instruments like credit default swaps. This allowed Greece to meet the baseline requirements to enter the Eurozone in the first place. But it also helped create a debt bubble that would later explode and bring about the current economic crisis that’s drowning the entire continent. Goldman Sachs, however, using its insider knowledge of its Greek client, protected itself from this debt bubble by betting against Greek bonds, expecting that they would eventually fail… 2

Excerpted; full article (with footnotes) link: http://williamblum.org/aer/read/137

HSBC documents reveal criminal conspiracy of banks and governments [World Socialist Website]

Posted in Bill Clinton, France, Fraud, Obama, Switzerland, U.K., US Government Cover-up, USA on February 22, 2015 by Zuo Shou / 左手
By Andre Damon
11 February 2015

…international news outlets the Guardian and Le Monde, working with the International Consortium of Investigative Journalists (ICIJ), published articles based on their analysis of leaked files showing that the Swiss private banking arm of HSBC, Europe’s largest bank, functioned for years as a tax evasion and money laundering firm.

The company ran a branch that gave out “bricks” of hundreds of thousands of dollars in cash in foreign denominations and provided its wealthy clientele with advice on how to commit tax fraud, according to the reports.

These facts have for years been been in the possession of international financial regulators and governments throughout the world—including those of Britain, France and the United States—which systematically covered them up.  Neither the bank, nor its executives, nor any of the clients that utilized its tax dodging services have been criminally prosecuted.

No one should believe that HSBC is an aberration; there is no doubt that similar practices are carried out by all major international financial institutions. The HSBC files have unearthed a cesspool of corruption, criminality, bribery and collusion that pervades the entire capitalist system and the governments that defend it.

The HSBC revelations are only the latest in a series of scandals involving virtually every major financial institution.  These have included the selling of fraudulent subprime mortgage-backed securities, illegal foreclosures, commodities fraud and the manipulation of LIBOR and international foreign exchange benchmarks.

HSBC was one of the institutions whose greed and lawlessness plunged the world into a crisis in 2008 from which it has never recovered, cost millions of people their jobs and launched a wave of austerity all over the world involving the slashing of workers wages’ and social benefits.

The list of people who used HSBC’s services include corporate executives, fundraisers and major donors to American, British and Australian political parties, and politicians from at least 17 countries, including Britain.

The trail of dirty money reaches as high as former US President Bill Clinton.  British business tycoon Richard Caring, who once picked up more than five million Swiss francs in cash from the bank, donated $1 million to Clinton’s foundation from his Swiss bank account.

The report by the ICIJ notes that the month before Caring made his donation, he “funded a champagne and caviar extravaganza at Catherine the Great’s Winter Palace in St. Petersburg, Russia, flying in 450 guests to be entertained by Sir Elton John and Tina Turner and addressed by Bill Clinton.”

It also notes that Charles Barrington Goode, a major fundraiser for the Liberal Party and chairman of ANZ bank, one of Australia’s largest financial institutions, held an account with the bank under a false name for three decades.

In addition to “legitimate” businessmen and high-ranking politicians, HSBC’s services were used by drug kingpins, weapons smugglers and traffickers in illegal “blood diamonds.”  Reviewing the reports, it is impossible to determine where the criminal underworld ends and the ruling class of bankers and corporate CEOs and their millionaire political front-men begins.

While no bank executives or wealthy clients have been prosecuted, the one person out of this morass of criminality who faces serious legal consequences is the whistleblower who exposed them.

In 2009, an HSBC technical employee named Hervé Falciani came to realize that HSBC’s private bank was operating a huge tax evasion operation, and began collecting information to provide to Swiss authorities, which showed no interest.

He subsequently turned files pointing to tax fraud by some 130,000 people over to the French police, who shared them with other governments, including that of Britain and America.  Falciani has since been charged with violating Switzerland’s bank secrecy laws and carrying out industrial espionage.

In 2010, then-French Minister of Finance Christine Lagarde provided a list of 2,000 suspected tax evaders to the Greek government, and the list subsequently came into the possession of Greek magazine publishers, who printed it.  They were subsequently charged, then found not guilty, of breaching privacy laws.

A portion of the files accumulated by Falciani were recently obtained by Le Monde and shared with the ICIJ and other newspapers. The files cover some 30,000 accounts holding nearly $120 billion in assets.

In the UK, more than 3,000 people have been investigated based on Falciani’s files, but the government has brought no charges against any of them.

Perhaps the biggest cover-up has been carried out in the United States, where in 2012 the Justice Department agreed to a $1.2 billion “deferred prosecution” settlement with HSBC on charges of money laundering for Mexican drug cartels, never mentioning the fact that the US government had evidence the bank helped its clients evade taxes.

One of the leading architects of the settlement with HSBC, Loretta Lynch, at that time the US attorney for the Eastern District of New York, is now the Obama administration’s nominee to replace Eric Holder as attorney general.  The Reverend Lord Stephen Green, HSBC’s chief executive during the period covered by the files, was subsequently appointed the UK’s minister of state for trade and investment…

Excerpted; full article link:  http://www.wsws.org/en/articles/2015/02/11/hsbc-f11.html

**************************

Related article about HSBC’s bogus  ‘prosecution’ by the US gov’t for laundering Mexican drug money:

“Outrageous HSBC Settlement Proves the Drug War is a Joke” [Rolling Stone] by Matt Taibbi  —  http://www.rollingstone.com/politics/news/outrageous-hsbc-settlement-proves-the-drug-war-is-a-joke-20121213

China challenges US economic war against Russia [World Socialist Website]

Posted in BRICS - Brazil, Russia, India, China, South Africa, China, Germany, India, Italy, Japan, NATO, Neo-colonialism, Obama, Pentagon, Russia, SCO Shanghai Cooperation Organization, Sino-Russian, Syria, Ukraine, US imperialism, USA, USA 21st Century Cold War, USSR, Wall Street on January 7, 2015 by Zuo Shou / 左手

By Alex Lantier
23 December 2014
Directly challenging the NATO powers’ policy of cutting off credit to Russia to undermine the ruble and bankrupt the Russian economy, China is pledging to extend financial aid to Moscow.

On Saturday, Chinese Foreign Minister Wang Yi stressed the need for mutual aid between China and Russia in remarks on the ruble crisis, which has seen a drastic 45 percent fall in its value against the dollar this year. “Russia has the capability and the wisdom to overcome the existing hardship in the economic situation,” Wang said. “If the Russian side needs it, we will provide necessary assistance within our capacity.”

On Sunday, Chinese Commerce Minister Gao Hucheng told Hong Kong’s Phoenix TV that Beijing would strengthen ties with Moscow in energy and manufacturing, predicting that Chinese-Russian trade would hit its target of $100 billion this year despite the ruble crisis. As the ruble’s value in dollars or euros swings wildly, Gao proposed moving away from the dollar in financing Chinese-Russian trade and instead using the Chinese currency, the yuan or renminbi.

Gao said China would focus on “fundamental factors such as how the two economies complement each other,” Reuters reported. “Capital investors may be more interested in a volatile stock or foreign exchange market. But in terms of concrete cooperation between the two nations, we shall have a balanced mentality and push forward those cooperations,” Gao said.

Yesterday, China Daily cited Li Jianmin of the Chinese Academy of Social Sciences saying that aid to Russia could pass through channels like the Shanghai Cooperation Organization (SCO) or the BRICS forum. Significantly, both the SCO (an alliance of China, Russia, and Central Asian states) and the BRICS (Brazil, Russia, India, China, South Africa) exclude the United States and Europe.

Li noted that already last month, when Chinese and Russian premiers Li Keqiang and Dmitry Medvedev met in Kazakhstan, they signed extensive deals on railways, infrastructure and development in Russia’s Far East region, north of China. “Loans, cooperation in major projects, and participation in domestic infrastructure investment in Russia are options on the table,” he added. In one such deal last month, China signed a $400-billion, 30-year deal to buy Russian gas.

These offers of assistance cut across the economic war on Russia launched by US and European imperialism to punish Moscow for opposing their neo-colonial restructuring of Eurasia.
In retaliation for Russian support for President Bashar al-Assad against NATO’s proxy war in Syria and Russian opposition to the NATO-backed Ukrainian regime in Kiev, the NATO powers sought to financially strangle Russia. As Russian oil revenues fell in line with the fall in world oil prices and the ruble collapsed, they worked to cut off credit to Russia and demanded that Russia acquiesce to the Kiev regime.

The basic financial mechanism of this strategy was laid out in London’s Financial Times by Anders Aslund of the Petersen Institute for International Economics. “Russia has received no significant international financing—not even from Chinese state banks—because everybody is afraid of US financial regulators,” he wrote. With a yearly capital outflow of $125 billion, liquid foreign currency reserves of only $200 billion, and total foreign debts of $600 billion, Russia would run out of dollars and be bankrupted in as little as two years, Aslund calculated.

Now, however, Beijing appears to be accepting the risk of a showdown with the United States and publicly preparing to throw a financial lifeline to Russia. Chinese currency reserves of $3.89 trillion are the world’s largest and, on paper at least, allow Beijing to easily repay Russia’s debts.

Significantly, the calls of Wang and Gao to aid Russia came a day after a divided European Union (EU) summit on Russia last week. Though the EU supported US sanctions against Russia, German Foreign Minister Frank-Walter Steinmeier, French President François Hollande and Italian Prime Minister Matteo Renzi all publicly opposed calls for more sanctions. Leading European newspapers also warned of the risk of a collapse of the Russian state…

…The economic conflicts erupting between the major powers over the oil crisis and the imperialist war drive in Eurasia testifies to the advanced state of the crisis of world capitalism, and the rising risk of world war.

Chinese aid to Russia, should it materialize, will exacerbate US conflict with China. Washington has tried to militarily encircle it through the “pivot to Asia,” allying with Japan, Australia, and India. Plans for war with China, both economic and military, are doubtless being pored over on Wall Street and in the Pentagon.

A year ago, in an article titled “China must not copy the Kaiser’s errors,” Financial Times columnist Martin Wolf warned China against any action that could be construed as a challenge to US global hegemony. He indicated that a Chinese policy replicating the German Kaiser’s challenge to British hegemony before the outbreak of World War I in 1914 would lead to a similar outcome: all-out conflict.

“If open conflict arrived, the US could cut off the world’s trade with China. It could also sequester a good part of China’s liquid foreign assets,” Wolf wrote, recalling that China’s “foreign currency reserves, equal to 40 percent of GDP are, by definition, held abroad.” Such naked theft of trillions of dollars that China has earned from trade with the United States and Europe would directly raise the prospect of a collapse of global trade and preparation for war between nuclear-armed powers.

With its ever more reckless and violent policies, US imperialism is vastly overplaying its hand, discrediting itself at home and fueling opposition from rival states. By driving Russia and China together, in particular, Washington is undoing what was long seen as a major achievement of US imperialist statecraft: the 1972 rapprochement between US President Richard Nixon and Chinese leader Mao Zedong, which turned China into a US ally against the former Soviet Union.

“Many Chinese people still view Russia as the big brother, and the two countries are strategically important to each other,” Renmin University Associate Dean Jin Canrong said, referring to Soviet backing for China as it fought the United States in the Korean War, shortly after the…Chinese Communist Party (CCP) came to power in 1949. “For the sake of national interests, China should deepen cooperation with Russia when such cooperation is in need.”

“Russia is an irreplaceable partner on the international stage,” the CCP-linked Global Times wrote in an editorial yesterday. “China must take a proactive attitude in helping Russia walk out of the current crisis.”

Edited by Zuo Shou

Article link: http://www.wsws.org/en/articles/2014/12/23/chin-d23.html

Richard Wolff on the State of the Economy [FAIR / Counterspin]

Posted in Corporate Media Critique, Economic crisis & decline, US Government Cover-up, USA, Wall Street on November 6, 2014 by Zuo Shou / 左手

Superb interview, you might want to jump directly to Wolff’s segment. I like his idea that deceptive capitalist ruling class media such as what’s being exposed not only falsifies reality but contains an element of psychological cruelty directed towards the oppressed majority whose experiential realities are suppressed in the official narrative. – Zuo Shou

Oct. 17, 2014

This week on CounterSpin: In the past few years, as some economic indicators have suggested a recovery is under way, US media have generally responded with celebratory reporting. But according to polls, Americans aren’t so sure. According to a recent NBC poll, just 18 percent say the economy is excellent or good. How can we best understand an economy that seems to be serving some but slighting others?

Today we’ll feature a special extended interview with economic professor Richard Wolff on how to reconcile mixed messages about the health of the economy.

Link: http://fair.org/counterspin-radio/richard-wolff-on-the-state-of-the-economy/