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What We Are Not Being Told About Ukraine

Added: Thursday, March 13th 2014 at 9:21am by boggart-eft
 
 
 

Another day passes and there is now hardly a word in mainstream media print and broadcast news about Ukraine. Has it all blown over you might well ask. Actually while a localised and limited shooting war would have been tragic for the people of Ukraine, Russia and some surrounding territories it would have afected people in the EU, Britain and the USA very little.

What's happening now poses a far greater threat to our prosperity both in the short and long term and to the kind of future we can look forward to. Jere's a summary of some stories that were not reported in western media.

Russia Threatens to Drop The Dollar and Crash The U.S. Economy if Sanctions Are Imposed - West Goes Ahead With Sanctions Anyway

On Tuesday Reuters reported that a Kremlin aid Sergei Glazyev had announced that if the U.S. were to impose sanctions on Russia Moscow may drop the dollar as a reserve currency and refuse to pay off any loans to U.S. banks saying that Moscow could recommend that all holders of U.S. treasuries sell them if Washington freezes the U.S. accounts of Russian businesses and individuals.

"We would find a way not just to reduce our dependency on the United States to zero but to emerge from those sanctions with great benefits for ourselves," said Glazyev. "An attempt to announce sanctions would end in a crash for the financial system of the United States, which would cause the end of the domination of the United States in the global financial system"

That statement is startling by itself, but the true gravity of this situation is only evident when you consider it in context. China has taken Russia's side in the Ukraine conflict (they are after all allies) and China holds the lion's share of U.S. treasuries. If Russia puts out the call to drop the dollar China would have a choice: either hold on to those treasuries while the dollar slides (losing their shirt in the process) or join Russia and dump their holdings as well. It should be pretty obvious which way China would go.

As The Guardian reports however, that the USA has unilaterally decided to go ahead with sanctions against Russsia in retaliation for Putin's refusal to back down and withdraw Russian troops from Crimea.

US imposes visa restrictions on Russian officials as Obama signs sanctions order
Employing his favourite tool for by passing the democratic process, On March 6 The Emperor Obama signed an executive order extending US sactions against Russia. (Read More on sanctions story at The Guardian )

Getting into an economic war with Russia would create a pile of problems for the Obama Administration, first it would drive a wedge between the USA and it's EU allies most of which are heavily dependent on Russian gas for their domestic and industrial supplies. Secondly, failing to consider the consequences of Russia's allies responding to such a move by applying sanctions of their own is, typically asinine. When Obama signed the sanctions order, authorizing economic action against the Russians he may have performed his usual arrested adolescent feat of convincing himself that we he speaks, nobody could possibly disagree with him.

Experience of dealing with other world leaders has taught him nothing in this respect. So was the massianic one hoping that on realising they had incurred his displeasure Russia would capitulate, beg for mercy and start dancing to Washington's beat. It's hard to imagine The White House corps of diplomats, advisors and political scientists could be so thick, but Obama has had five years to fill key roles with his personal rent boys appointees. Maybe they were just too busy planning the next frat party to think things through properly.

Either way, the outcome is the same. The U.S. government's constant meddling in the domestic affairs of sovereign states has now embroiled it in a geopolitical game of chicken and if one side or the other does not blink soon there will be an almighty fracas .

Unfortunately though they initially picked a fight with the corrupt but democratically elected government of Ukraine in the hope of humiliating Russia by drawing its neighbour and close ally into the US / EU / NATO sphere of influence, by sponsoring regime change the USA has brought itself into conflict with the world's 8th largest economy (by GDP), having already for a while been at loggerheads with China, the second largest economy and holder of huge amounts of US debt.

In the latest development India sided with Putin by announcing Russia's interests in Crimea are legitimate (Times of India) .

The question now is how will the rest of the world react. Iran's position is a foregone conclusion and Saudi Arabia will demand a heavy price for its support, even from a traditional ally. With Japan, like the EU, hamstrung by economic difficulties and Australia and Canada likely to offer token support while Britain's David Cameron's hands will be tied by Parliament that in the wake of futile wars in Iraq and Afghanistan has become somewhat isolationist.

The lines of economic warfare have been drawn up, and as sides are being picked it looks as if the USA is backed by weaklings, wusses and economic basket cases. Get ready to kiss your savings goodbye. And find a good recipe for bone broth.

 

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User Comments

Yup, very true....

It seems to me that Russia would have more to lose if they cut loose the U.S. dollar.  The entire world bases its currencies on the dollar and what is there to fall back on?  The Euro?  Puleeeze!  It's having enough problems just staying afloat.  And what about China?  It is the largest foreign owner of U.S. debt.  If the U.S. government goes into default on its bills, that will sink the value of the Treasuries China owns and wipe out a big chunk of Chinese wealth.  So I doubt they'll be anxious to act. 

Problem is that both Russia and China have been spearheading a shift in Dollar international trade away from your country. Its been a gradual shift but its gradually gaining momentum. All it would take to bring absolute havoc to your country is a country such as Saudi Arabia to ditch trading oil for the Dollar and it will bring you down to your knees with a nightmarish inflation.

 

Both China and Russia hate America with a passion and although both those country's themselves don't get along with one another they have one thing in common and that is to bring you down to your knees. Since 2008 China its self has been calling for a new world currency and both Russia and China are now beginning to work together to get that new world currency. Now it might be quite a few years before that happens however only the other week China and Germany came to an agreement to trade not in Dollars which they have been doing but in their own currency.

 

I would bet my last penny that the America media have not published this little snippet of news. Yet there have been 11 other agreements like that one.

 

Russia v China have agreed not to use Dollars. 

Brazil v China the same. Not only that Brazil does more trade with China than anyother country in the world.

China v Australia, they have agreed a A$30 billion currency swap agreement.

 

China v Japan have agreed to do the same in future. China is Japans biggest trading partner with a whopping  26 trillion Yen which works out at around $35 billion 

Japan v India they have decided to trade in their own currency's.

 

Iran v Russia have discarded the $ and are trading in their own currency and Iran is still selling loads of oil. 

 

China v Chile again have come to an agreement to use each other currency.

 

China v Africa. Africa trades more with China than anyone else in the world and as such have come to an agreement to use each others currency.

 

Brazil, Russia , India, China and South Africa are about to inject their own currency's into the World Market. So what does all this mean? I am afraid it means complete complacency by America and its people who have taken their eye of the ball and it means this for not just you but for me and Ian as well.

Oil will sky rocket for everyone.

Prices in shops will sky rocket for everyone.

There will be less foreign demand for US  Government debt.

Interest rates on U.S. government debt will rise.

Interest rates on just about everything in the U.S. economy will rise.

 

In short, your economy collapses.

 

 

 

That's one good reason for us to switch from oil to something green.  The Saudis, indeed the entire Middle-East, would feel the pinch if they couldn't sell us anymore oil.  Guess whose economies would suffer then?

MajorGray is correct Amala, in the past two years China has concluded deals with most of its main trading partners including Russia, the EU, Iran, Saudi Arabia, Japan and Australia to carry out bilateral trades in the curency of the vendor nation. Russia has allowed the rouble to become a traded currency and Iran is only accepting payment for oil in euros, UK Pounds, Swiss Francs, Renminbi or Gold.

The UK £ is enjoying a resurgence as a trading currency which is why our economy looks to be doing well (its in deep shit really) and elsewhere it looks as if gold will soon be the de facto reserve currency again.

I admire your patritiotic fervour but a little reality is needed, the Rothchild banking dynasty control the global economy and they are ready to switch off america's life support system.

That wont happen for quite some time Amala, green energy has proven to be quite a stumbling block. We have seen that wind turbines are not efficient Solar can be quite useful however as we have seen in the past building and changing over huge subsidy's are needed from Government because without those Government subsidy's the private sector will not touch them with a barge pole. Consequently when Governments take away those subsidy's they begin to lose money and they suddenly back away from them. 

We are geared to run on oil, our whole being on earth is geared that way from the products that we now use to buying them at the local shops.

We may be "geared" to run on oil but eventually the oil WILL run out.  It isn't an eternal resource and when it runs out, that will be all she wrote.  So the earlier we learn to live without it, the better off we'll be.  Yes, it will be hard but it isn't impossible.  All it will take is American ingenuity and we have a lot of that.

you are spot on right,sadly so for us and those that don't get it yet.

I think the news is one sided. It seems that it cant multi-task. They seem to only be able to report on one thing at a time. They will harp and harp on something, and barely mention another important issue. Then they move on to another problem and let the old news drop along the way.

sensation gets eyes on pages and sells advertising {#basic-laugh.gif}

You're right. I've taken a lot of flack these past three years for taking a non interventionist stance, but I really believe peace only works when sovereign nations stay out of each other's domestic affairs.

I am all for giving Putin a good kicking But then I would say that. Past experiences though tell me that we should go down the diplomatic road and exhaust all known words and try to come to some kind of agreement that lets everyone walk away without losing face.

I'm afraid the EU will be totally ineffectual. For the simple reason that the EU is a non-functioning union. I am not for one moment suggesting a military intervention, but if ever a course of action were considered - well, FORGET IT!! The only "fighting forces" would be the French and the Brits. The Brits have had their armed capability decimated bt a band of clowns collectively called the Government. I don't think the French have many more fighting troops than the Brits. The rest ?? Well, they all work under the governance of Union Rules. As to diplomacy - well, Cameron talks a garbled version of shit, and the rest do not do much better.

I don't really know what the answer is. It certainly does not involve the USA shoving it's beak in, for sure. The USA are no better than any one else at "sorting things out".

Eminently sensible. Very good commentary Cass.

Well stated

Obama does not have the guts nor the mental power to stack up against an KGB intelligence trained man as Putin.  Not saying I agree with Putin or disagree. I do know as we all do, Obama is making a mess out of our country and should keep his nose and mouth to himself and leave other countries alone.

Russia has a massive land area with many mutually hostile ethnicities. So long as the west does not start medding in the business of Russia's allies and neighbours, Putin has enough to deal with in his own back yard.
Yes, he's a ruthless tyrant byt he's their ruthless tyrant and so not our problem. {#basic-laugh.gif}

Well said !!! I agree. Leave Putin to screw things up himself - save the rest of us the time and expense.

Ya know, the REAL news is totally depressing, so it's no wonder the lamestream media only reports "sunshine and lollypops."

Thanks Boggart and Major. 

I find knowing the truth helps me keep a cheerful demeanour. While I'm sure the world is up shit creek I don't waste energy on expecting good things to happen, I'm just pleasantly surprised when they do.

If the Ukraine did not hold extensive oil reserves and a pipeline system already in place the US would not even be giving it a second glance.  It's all about oil if what we are not being told.

Oil and gas are a big part of it. Russia was OK about having vital pipelines run through a foreign nation so long as that foreign nation was governed by friendly little puppets.

Well of course they were and are.  And we wouldn't have the slightest interest in helping them if they didn't have it.

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