Tag: economics

Transcript: Putin’s Speech at SPIEF

I welcome all participants and guests of the 25th St Petersburg International Economic Forum.

It is taking place at a difficult time for the international community when the economy, markets and the very principles of the global economic system have taken a blow. Many trade, industrial and logistics chains, which were dislocated by the pandemic, have been subjected to new tests. Moreover, such fundamental business notions as business reputation, the inviolability of property and trust in global currencies have been seriously damaged. Regrettably, they have been undermined by our Western partners, who have done this deliberately, for the sake of their ambitions and in order to preserve obsolete geopolitical illusions.

Today, our – when I say “our,” I mean the Russian leadership – our own view of the global economic situation. I would like to speak in greater depth about the actions Russia is taking in these conditions and how it plans to develop in these dynamically changing circumstances.

When I spoke at the Davos Forum a year and a half ago, I also stressed that the era of a unipolar world order has come to an end. I want to start with this, as there is no way around it. This era has ended despite all the attempts to maintain and preserve it at all costs. Change is a natural process of history, as it is difficult to reconcile the diversity of civilisations and the richness of cultures on the planet with political, economic or other stereotypes – these do not work here, they are imposed by one centre in a rough and no-compromise manner.

The flaw is in the concept itself, as the concept says there is one, albeit strong, power with a limited circle of close allies, or, as they say, countries with granted access, and all business practices and international relations, when it is convenient, are interpreted solely in the interests of this power. They essentially work in one direction in a zero-sum game. A world built on a doctrine of this kind is definitely unstable.

After declaring victory in the Cold War, the United States proclaimed itself to be God’s messenger on Earth, without any obligations and only interests which were declared sacred. They seem to ignore the fact that in the past decades, new powerful and increasingly assertive centres have been formed. Each of them develops its own political system and public institutions according to its own model of economic growth and, naturally, has the right to protect them and to secure national sovereignty.

These are objective processes and genuinely revolutionary tectonic shifts in geopolitics, the global economy and technology, in the entire system of international relations, where the role of dynamic and potentially strong countries and regions is substantially growing. It is no longer possible to ignore their interests.

To reiterate, these changes are fundamental, groundbreaking and rigorous. It would be a mistake to assume that at a time of turbulent change, one can simply sit it out or wait it out until everything gets back on track and becomes what it was before. It will not.

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Eurofragility

SHOT: French demand for Russian natural gas has been on the rise for the last four years. The upward trend continues in the current year as well. From January 1 through June 5, 2019, Gazprom’s gas supplies to France totaled 5.8 billion cubic meters, an increase of 5.6 per cent from the same period of 2018. In 2018, Gazprom supplied to France 12.9 billion cubic meters of gas, an increase of 5.4 per cent against 2017 (12.3 billion cubic meters).

CHASER: Russian natural gas flows to France via pipeline from Germany have ceased. Russia’s Gazprom will reduce gas supply to Italy by 50 percent today, says the energy company Eni.

I wonder how the politicians in Finland, Switzerland, and Sweden who threw away their nations’ neutrality in order to participate in those stunningly self-destructive sanctions are feeling now? The presumably unintended consequences have boomeranged so horrifically on the neoliberal economies that they could not unreasonably be charged with being Russian agents.

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Running on Empty

The Tree of Woe contemplates the global economic order and the reinvention of the Third World in a four-part series.

Part I of this series explained that the US dollar is the world’s first reserve currency that is not backed by precious metals. Instead it is backed by other people’s oil. Because of a secret treaty between the US and Saudi Arabia, petroleum can only be purchased with dollars. Every country needs oil, so everyone country needs dollars and sells imports to the US to get them. Demand for dollars has made the USD the primary American export, allowing the US to deindustrialize and financialize its economy.

Part II explained how the petrodollar has grossly enriched American asset holders (stocks, bonds, and real estate) and painfully impoverished American wage earners. Under the petrodollar system, dollars are created by private banks for profit. These dollars are recycled into the economy by OPEC nations, causing stocks, bonds, and real estate to rise. This profitable exchange is enforced by American military might, which punishes any country that seeks to exit the petrodollar system.

Part III explained that for the petrodollar system to function, America needs to be able to project power worldwide to secure international trade and enforce the system. America secures global commerce and projects military power by commanding the World Ocean, by which 90% of all goods are trafficked. To overcome America’s naval supremacy, both Russia and China have sought to establish control of the World Island, the Eurasian supercontinent that houses most of the world’s population and resources. The Russo-Ukraine War is a proxy war between the uncontested master of the World Ocean (America) and the would-be masters of the World Island (China and Russa).

In Part IV, we’ll discuss how faulty expectations by both sides in the Russo-Ukraine War have led to sanctions of such severity might cause the petrodollar system to break down.

It’s an excellent series, and you’d expect, although my perspective on the military situation is a little bit different. I don’t think Russia expected to quickly knock Ukraine out of the war. I think they hoped to do so with their opening gambit that included the lightning light infantry assault on Kiev, but that Operation Z never depended upon it.

The relatively small number of troops utilized, the way in which Russia has not heavily utilized its air and sea superiority, the second-rate units utilized, and the way Russia has methodically focused on attrition warfare in the Donbass all demonstrate that Russia has been holding its forces in ready to take on NATO directly. Just as the Germans were surprised by Russian manufacturing capabilities, Russian shell production has resulted in NATO complaining about Russia’s overwhelming artillery advantage, with the Russian forces able to fire up to 60,000 shells and rockets per day several months after we were informed that Russia was going to run out of ammunition within two weeks.

However, this doesn’t undermine Tree of Woe’s case so much as it underlines it. Russia has clearly been planning for a long and unrestricted confrontation with NATO and the USA from the start, one which includes both the military and the economic conflicts. Which is precisely why I think it is highly unlikely that the special military operation is going to end with a Ukrainian surrender and a negotiated settlement that brings Russia back into the neoliberal economic order.

While the World Ocean would cheerfully settle for that now, both Russia and China are obviously aware that it would merely mean putting off the larger conflict for a few years and giving their adversaries time to better prepare for it.

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The Battle of Ukraine is Over

“The battle of Helm’s Deep is over; the battle for Middle Earth is about to begin.”

Ukrainian troops are suffering massive losses as they are outgunned 20 to one in artillery and 40 to one in ammunition by Russian forces, according to new intelligence painting a bleak picture of the conflict on the frontline.

A report by Ukrainian and Western intelligence officials also reveals that the Ukrainians are facing huge difficulties responding to Russians shelling with their artillery restricted to a range of 25 kilometres, while the enemy can strike from 12 times that distance.

For the first time since the war began, there is now concern over desertion. The report, seen by The Independent, says the worsening situation in the Donbas, with up to a hundred soldiers being killed a day, is having “a seriously demoralising effect on Ukrainian forces as well as a very real material effect; cases of desertion are growing every week”.

At the same time, as the Russians capture territories in the east, and consolidate their control over the seized cities of Mariupol and Kherson, the bargaining position of the Ukrainian government is being weakened by acute disparity in the numbers of prisoners being held by each side.

The total number of Russian soldiers being held by Ukraine has fallen to 550 from 900 in April after a series of exchanges. Moscow meanwhile has more than 5,600 Ukrainian troops in captivity, the figure enlarged by the surrender of 2,500, including members of the Azov Battalion, in Mariupol.

Business Insider, 11 June 2022

The battle of Ukraine is over. The outcome – always predictable from the start – is certain, which is why the media is now filled with accounts of various globalist figures very cleverly suggesting that giving Russia what it already has might buy more time for the failing neoliberal world order. It won’t, because there was never any real war between Russia and Ukraine, which was why the Russians very carefully described their actions as a “special military operation”.

It was just a battle, and not a particularly big battle in historic terms at that. It was the first phase of a much larger military conflict.

The Russians know very well that the war isn’t over. Ukraine isn’t their primary enemy anymore than Austria or Poland were the primary enemies of Germany in the 20th Century. 2022 is more akin to 1939 than 1940, much less 1941.

The battle of Ukraine is over; the battle for world order is about to begin.

A battle which some observers, such as Karl Denninger, suspect is already lost:

The so-called Russian Sanctions have blown up spectacularly in the western world’s face. Russia now has a stronger currency than it did before the war we instigated began. Oil and Natural Gas, never mind things like fertilizer, are nice and expensive which suits Putin just fine. He has negotiated long term interchange with China for both and is building out the capacity to wildly increase same. Europe is fucked down the road as a result and in the meantime they got nothing for all these “sanctions.”

For that matter so are we. We’ve sequestered our inflationary deficit spending overseas via the China/US (and other nations, including India) trade deficit for the last two decades. That’s over and will never come back because none of the nations that we were doing it with have any reason to allow it ever again and they don’t need to. Not a single member of the Fed or other “economic punditry” has said one word about this although I sure as Hell have.

At the same time Russia is shipping oil to these nations who then cross-ship it back, some refined first, and there’s absolutely no way to do anything about that since we’re incapable of sanctioning either without instantly detonating our supply chains, offshored labor or both. As a result we can no longer spend in deficit without it reflecting back into inflation which means the “free ride” gave has been terminated and while this was always eventually going to end we did this to ourselves and thus the inflation you’re seeing and will continue to see was and is caused directly by our policies and our government.

The outcome isn’t absolutely settled. But the smart money is betting on the eventual victory of the Silk Road Alliance. There is a reason they call it Clown World and not Rocket Scientist World or Smart, Sensible, and Sustainable World, after all.

Quote of the Day: “You cannot appease Russia with some territory that they already have, or will take. Its not yours to give. Russia will decide exactly what happens to the Ukraine, how, and when.”

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Switzerland’s Return to Poverty

The once-neutral country chooses a course that will inevitably lead it toward economic and geopolitical irrelevance if it is not abandoned:

The Swiss government has adopted the latest set of European Union sanctions against Russia and Belarus over the war in Ukraine, including an embargo on crude oil imports and certain refined petroleum products from Russia.

The Federal Council on Friday decided to adopt the sixth package of sanctions agreed by EU countries on June 3. It includes an embargo that will be introduced progressively on all Russian crude oil delivered by sea to Europe from early December; a ban on all Russian refined oil products will be introduced two months later.

This is really unbelievable from a historical perspective. The Federal Council appears to have forgotten that for centuries, Switzerland was a very poor country that had virtually nothing to offer anyone except Alpine transit routes and its young men’s service as mercenaries. To this day, its national cuisine involves little more than bread and cheese.

Switzerland became wealthy as a result of two things: banking secrecy, and neutrality. It gave up the former under US pressure in 2010, and formally abandoned the latter in 2022. (One could reasonably make a case for it technically having done so when it joined the UN in 2002, but the more recent action is the more conclusive one.) Compounding the self-destructive effects of nuking its political neutrality, it actually did so on behalf of the losing party, which now almost guarantees that instead of serving as a central business connection between whatever replaces the declining neoliberal order in the former West and the rising Silk Road order in the North, South, and East, Switzerland’s current leaders have foolishly chosen to follow the lead of the increasingly irrelevant West European Co-Prosperity Sphere and taken the risk of rendering their country a very small and uncompetitive node on the wrong side of the Great Bifurcation.

This isn’t a prediction. This is an observation of a process that is already taking place.

For the past 200 years, Switzerland has been the number one financial center to attract wealth from other countries. Yet, it will unlikely be able to hang on to its pole position, as wealth increasingly flows to other places. And this isn’t the only area where Switzerland is falling behind.

Although Switzerland reaped the gains from 2021’s buoyant financial markets, growing 5.5 percent, the report points to more challenging years ahead for the financial center.

A big blow will come in the next four years when Switzerland falls out of the world’s top three financial centers, into fourth position behind the U.S., Hong Kong, and the U.K. in terms of onshore, cross-border and financial assets held. While Swiss financial assets are expected to grow 2.8 percent by 2026, the report says assets in the U.K. will rise by 3.3 percent (see below).

Switzerland will take another hit next year when Hong Kong overtakes it as the top financial center for cross-border wealth, ending Switzerland’s 200-dominance as the world’s strongest magnet for foreign wealth.

Switzerland Losing Ground Among Top Financial Centers, FINews

Going from neutral to reverse is no way forward.

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The Collapsing Tripod

The Atlantic is not exactly a publication in which I have any trust whatsoever. But it is informative to note that even some of the most-hallowed mainstream media institutions are beginning to attempt to come to grips with the ineluctable fact that the economic order is on the verge of collapsing because the foundational principles upon which it rests have proven to be false.

The Anglo-American system of politics and economics, like any system, rests on certain principles and beliefs. But rather than acting as if these are the best principles, or the ones their societies prefer, Britons and Americans often act as if these were the only possible principles and no one, except in error, could choose any others. Political economics becomes an essentially religious question, subject to the standard drawback of any religion—the failure to understand why people outside the faith might act as they do.

To make this more specific: Today’s Anglo-American world view rests on the shoulders of three men. One is Isaac Newton, the father of modern science. One is Jean-Jacques Rousseau, the father of liberal political theory. (If we want to keep this purely Anglo-American, John Locke can serve in his place.) And one is Adam Smith, the father of laissez-faire economics. From these founding titans come the principles by which advanced society, in the Anglo-American view, is supposed to work. A society is supposed to understand the laws of nature as Newton outlined them. It is supposed to recognize the paramount dignity of the individual, thanks to Rousseau, Locke, and their followers. And it is supposed to recognize that the most prosperous future for the greatest number of people comes from the free workings of the market. So Adam Smith taught, with axioms that were enriched by David Ricardo, Alfred Marshall, and the other giants of neoclassical economics.

The most important thing about this summary is the moral equivalence of the various principles. Isaac Newton worked in the realm of fundamental science. Without saying so explicitly, today’s British and American economists act as if the economic principles they follow had a similar hard, provable, undebatable basis. If you don’t believe in the laws of physics—actions create reactions, the universe tends toward greater entropy—you are by definition irrational. And so with economics. If you don’t accept the views derived from Adam Smith—that free competition is ultimately best for all participants, that protection and interference are inherently wrong—then you are a flat-earther.

Outside the United States and Britain the matter looks quite different. About science there is no dispute. “Western” physics is the physics of the world. About politics there is more debate: with the rise of Asian economies some Asian political leaders, notably Lee Kuan Yew, of Singapore, and several cautious figures in Japan, have in effect been saying that Rousseau’s political philosophy is not necessarily the world’s philosophy. Societies may work best, Lee and others have said, if they pay less attention to the individual and more to the welfare of the group.

But the difference is largest when it comes to economics. In the non-Anglophone world Adam Smith is merely one of several theorists who had important ideas about organizing economies. In most of East Asia and continental Europe the study of economics is less theoretical than in England and America (which is why English-speakers monopolize Nobel Prizes) and more geared toward solving business problems.

First, Rousseau was always an absurd and nonsensical joke. Second, Steve Keen has mathematically proven the fundamental incorrectness of Adam Smith due to the unreliable nature of the collective demand curve. Third, List is not the solution to Smith, and for the same reason.

The hardest thing for even many of the people on the so-called ideological Right to accept – so-called because Left-Right ideology is incoherent, irrelevant, and entirely outmoded – is that the Enlightenment has proven to be an intellectual and philosophical dead end. Reason, at least in its human embodiment, has turned out to be irrational; all of the models and creeds and policies that rely upon the basic concept of human rationality have not only failed, but have been conclusively proven to be false.

It was simply inertia from Christendom that allowed the Enlightenment to pass itself off as progress. But the systematic eradication of Christianity from intellectual, professional, and public life combined with the adulteration of the European nations is finally overcoming that centuries-old inertia, to disastrous effect.

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Forever Swept Away

Alastair Crooke points out that we are witnessing the end to what he describes as the neoliberal cosmopolitan economic order upon which globalization was constructed.

The First World War signalled the end to a mercantilist order that had evolved under the aegis of European powers. One hundred years later, a very different economic order was in place (neoliberal cosmopolitanism). Believed by its architects to be universal and everlasting, globalisation transfixed the world for an extended moment, but then started the subsidence from its zenith – precisely at the moment the West was giving vent to its triumphalism at the fall of the Berlin Wall. NATO – as the order’s regulatory system – addressed its attendant ‘identity crisis’ by pushing for eastward expansion toward Russia’s western borders, disregarding the guarantees it had given, and Moscow’s virulent objections.

This radical alienation of Russia triggered its pivot to China. Europe and the U.S. however, declined to consider issues of due ‘balance’ within global structures, and simply glossed over the realities of a world order in momentous metamorphosis: with the steady decline of the U.S. already apparent; with a European faux ‘unity’ that masked its own inherent imbalances; and in the context of a hyper-financialised economic structure which lethally sucked out the juice from the real economy.

The present war in Ukraine therefore simply is an adjunct – the accelerant to this existing process of ‘liberal order’ decomposition. It is not its centre. Fundamentally geo-strategic in their origin, the explosive dynamics to today’s disintegration can be seen as blowback from the mismatch from diverse peoples’ looking now to solutions tailored to suit their non-western civilisations, and from the western insistence on its ‘one size fits all’ Order. Ukraine thus is a symptom, but is not per se, the deeper disorder itself.

Tom Luongo has remarked – in connection with the ‘messy’, confusing events of today – that that which he fears most, is so many people analysing the intersection of geopolitics, markets and ideology, and doing so with such striking complacency. “There is a stunning amount of normalcy bias in the punditocracy, too much ‘cooler heads will prevail’ and not enough ‘everyone’s got a plan until they’re punched in the mouth’”.

What Luongo’s retort doesn’t fully explain is the shrillness, the outrage, with which any doubting of the accredited ‘punditocracy’ of the moment is met. Plainly, there is a deeper fear stalking the lower depths of western psyche that is not being made fully explicit.

Wolfgang Münchau, formerly at the Financial Times, now authoring EuroIntelligence, describes how such a canonised Zeitgeist implicitly has imprisoned Europe in a cage of adverse dynamics which threaten its economy, its autonomy, its globalism and its being.

Münchau relates how both the pandemic and Ukraine had taught him that it was one thing to proclaim an interconnected globalism ‘as cliché’, but “It is quite another to observe what actually happens on the ground when those connections get torn apart … Western sanctions were based on a formally correct, but misleading premise – one that I believed myself – at least up to a point: That Russia is more dependent on us than we are on Russia … Russia however is a provider of primary and secondary commodities, on which the world has become dependent. But when the largest exporter of those commodities disappears, the rest of the world experiences physical shortages and rising prices”. He continues:

“Did we think this through? Did the foreign ministries that drew up the sanctions discuss at any point what we would do if Russia were to blockade the Black Sea and not allow Ukrainian wheat to leave the ports?… Or, did we think we can adequately address a global starvation crisis by pointing the finger at Putin”?

“The lockdown taught us a lot about our vulnerability to supply chain shocks. It has reminded Europeans that there have only two routes to ship goods en masse to Asia and back: either by container, or by rail through Russia. We had no plan for a pandemic, no plan for a war, and no plan for when both are happening at the same time. The containers are stuck in Shanghai. The railways closed because of the war.

“I am not sure the west is ready to confront the consequences of its actions: persistent inflation, reduced industrial output, lower growth, and higher unemployment. To me, economic sanctions look like the last hurrah of a dysfunctional concept known as The West. The Ukraine war is a catalyst of massive de-globalisation”.

Münchau’s response is that unless we cut a deal with Putin, with the removal of sanctions as a component, he sees “a danger of the world becoming subject to two trading blocs: the west and the rest. Supply chains will be reorganised to stay within them. Russia’s energy, wheat, metals, and rare earths will still be consumed, but not here – We [just] keep with the Big Macs”.

So again, ‘one’ searches for an answer: Why are the Euro-élites so shrill, so passionate in their support for Ukraine? And risk heart-attack from the sheer vehemence of their hatred for Putin? After all, most Europeans and Americans until this year knew next-to-nought about Ukraine.

We know the answer: the deeper fear is that all the landmarks to liberal life – for reasons they do not understand – are about to be forever swept away.

The World Doesn’t Work That Way Anymore, Alastair Crooke

Note that this is not a prediction. This is an observation of what is already happening, of what is already in progress. It is the actualization of what I have been predicting since 2004. And it is now readily apparent that the 2033 scenario originally articulated 18 years ago remains very much in play. Cooke summarizes his observations in a single cogent paragraph.

“Here is the point: The fixation with Ukraine essentially is but a gloss pasted over the realities of a global order in decomposition. The latter is the source of the wider disorder. Ukraine is but one small piece on the chess board, and its outcome will not fundamentally change that ‘reality’. Even a ‘win’ in Ukraine would not grant ‘immortality’ to the neoliberal rules-based order. The noxious fumes emanating from the global financial system are wholly unconnected to Ukraine – but are that much more significant for they go to the heart of the ‘disorder’ within the western ‘liberal order’.“

And while I, like everyone else, remain uncertain about what will eventually replace the failing current order, I nevertheless anticipate the inevitable change due to the fact that lords of the neoliberal order have, in its incipient death throes, helpfully clarified for us precisely how wicked and awful and terrible it truly was while producing the fattest, most licentious, most solipsistic, and most credulous populations in human history.

Whatever difficulties and challenges the collapse of the neoliberal rules-based order poses us, we can be confident that they will not be worse than the horrors that were intended for us in a Clown World without end. It’s an unusually astute article, so read the whole thing, which tends to explain the panic implicit in the recent statement

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The Downhill Slide

The owner of a trucking company explains why the USA is rapidly sliding into the worst recession it has ever seen.

I own a small trucking company, and this is what the fuel crisis is doing to our country… Today I filled up my truck to deliver products that help keep our country fed. When I filled up my truck, it cost me $1,149.50. This is ONE truck, for ONE day of fuel. I own three. So for one day of operation, it’s costing me $3,448.50. (Yes, we use a full tank of fuel every single day, sometimes more than 1 tank per day).

My trucks generally run 5-6 days a week, so we’ll just estimate on the low side and say five. That’s $17,242.50. Last week was over $20k for ONE week, that I have to pay out of my pocket to try and keep not only my children fed, but those of my employees, and our country.

Mark my words, we are on a downhill slide to the worst recession our country has ever seen. Trucking companies are going under left and right. (Literally hundreds weekly.) If you’re not aware, what you’re wearing, what you’re eating, what you’re living in, what you’re driving, what you’re reading this on, was delivered by a truck.

If something drastic doesn’t change in the next few weeks/months, I promise you, you’ll see empty shelves everywhere you look. You’ll see chaos as people fight for the basic necessities of everyday life. Food, medicine, etc…

I pray that all of you have the ability, knowledge, and skills to fend for yourselves. Not only against those who would do you or your family harm, but to be able to find sustainable food and water.

Fortunately, Russia is about to surrender any day now due to the brave Ukrainian military forces that are already within sight of Moscow, so fuel prices should rapidly decline to affordable levels before people actually start to starve.

Even so, it would be foolish to rely upon military outcomes, no matter how certain we are. So, why not just convert the entire US truck fleet to electric engines? Or – and let’s face it, this is thinking well outside the box – what about powering each truck with its own windmill? Since driving generates wind, a wind-powered vehicle should be able to operate for pennies on the diesel dollar!

It’s becoming increasingly apparent that Ukraine is Poland, Europe is Japan, and the USA is Germany in this upsized cartoon remake of WWII. Which, of course, makes Russia England and China the Soviet Union.

Russia ramps up gas supply to China. Gazprom intends to become China’s biggest natural gas supplier, accounting for more than 25% of Chinese imports by 2035.

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World War Clown

WWIII is WWC. In which Ishmael examines the next two years of Clown World’s manufactured crises, out of which the globalists hope their new-and-improved New World Order will be born like a phoenix rising from the ashes of its previous iteration:

The past 2+ years have been an example of evil’s influence increasing. Or more accurately, the past two years have made evil obvious to more people.

This war goes by several names. Vox Day refers to it as the war against the good, the beautiful and true. I call it the War on America, but we are not the only country targeted. Widespread clown world is proof of that.

The purebloods lost the Coof War decisively. The War on America accelerated because of that defeat. Many of us are demoralized which makes victory harder this time. There are fewer soldiers available, the stakes are higher, and it involves the rest of the world. I don’t know if it can be won without a legitimate leader arising. If one doesn’t, there could be civil unrest in the United States that makes previous summers’ riot seasons look like vacations.

Satanic minions are sabotaging America from within. We know who they are, no need to belabor that point here. Instead, I want to provide a roadmap for the next battlefield: Manufactured Crisis 2022 – 2023. My goal is not to be right. It is to provide tools so you know what to watch for and prepare yourselves as best you can.

The War on America’s battle plan has three milestones:

1. Negate America’s purchasing power

2. Remove things they can buy

3. Eliminate Americans themselves. This is also a victory condition.

How can such a nasty, complicated operation be broken down into three goals?

We are all broke now. Purchasing power eroded steadily over time and accelerated these past two years. Rent, groceries, and fuel are all pounding people’s wallets. As long as diesel remains high, so will every good in America.

The Russian sanctions are exacerbating the situation. Every other foreign company sees that and will demand payment in their local currency. All those US dollars sequestered overseas will flow back into the American money supply, deflating our purchasing power more.

Milestone number one is accomplished. If an individual hasn’t experienced yet, it’s only a matter of time.

This isn’t something that you’re going to be able to avoid or escape, no matter where you are in the world. Not even the elites building their bunkers in New Zealand will be able to avoid the inevitable consequences of the Great Bifurcation. And if you want to survive the turmoil, you’re only going to be able to do so by standing strong with others who refuse to submit to the madness of Clown World. The time for laying low and sitting silently on fences is over.

DISCUSS ON SG

The Great Bifurcation Continues

ITEM: Russia is now SWIFT-free.

Russian banking giant Sberbank has been disconnected from the SWIFT global financial messaging system under a new set of sanctions approved by European Union leaders on Monday. “This sanctions package includes other hard-hitting measures: de-Swifting the largest Russian bank Sberbank,” European Council chief Charles Michel announced following the EU summit.

ITEM: The European Union has largely stopped importing Russian oil.

After weeks of deliberation, EU member states have agreed in principle on a sixth round of anti-Russia sanctions, the bloc’s leadership announced after a meeting on Monday. Hungary and Bulgaria will keep buying Russian oil, but most other import routes will be blocked. EU Council President Charles Michel said the watered-down embargo will affect about 75% of Russian oil imports, with the percentage growing to 90% by the end of the year.

ITEM: India has replaced the USA as a primary customer for Russian oil. In 2021, the USA imported 6 million barrels of Russian crude per month.

More than 24 million barrels of Russian crude were supplied this month, up from 7.2 million barrels in April, and from about three million barrels in March. The South Asian nation is set to receive about 28 million barrels in June, data shows. Last year, Russian crude exports to India averaged just 960,000 barrels per month, roughly 25 times less than this month’s total.

ITEM: China has publicly denounced the “rules-based international order” as a “US rules-based international order”.

The “rules-based international order” it touts is actually the “US rules-based international order”, a hegemonic order to dominate the world with the house rules of its clique… The US places its domestic law above international law and international rules and willfully resorts to illegal unilateral sanctions and long-arm jurisdiction. Since the outbreak of COVID-19, Venezuela, Syria and Iran have been grappling with severe difficulties with a struggling economy and strained medical resources due to prolonged US sanctions. Under such circumstances, the US, rather than halting those sanctions, redoubled them, making things even worse for these countries. The international community sees with increasing clarity that the US only complies with the market competition principle and international trade rules it claims to champion when it suits US interests.

On the basis of these developments, I suspect that we are going to see China voluntarily and preemptively disconnect from the SWIFT and global trade systems later this year. China will likely be followed in this by India and a number of other anti-Clown World nations. This will not only trigger a serious financial crisis, if not a comprehensive banking collapse, but will likely lead to regime changes across Clown World.

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