BRICS or Sanctions

Aspiring members cannot choose both, thereby preventing countries like France, which has previously expressed an interest in joining the growing trade bloc, from obtaining membership:

BRICS applicants can’t join in sanctions against any of the economic bloc’s member states, Russian Deputy Foreign Minister Sergey Ryabkov said on Thursday, outlining one of the conditions for joining the club.

The group that started as an informal association of Brazil, Russia, India and China has since expanded to nine member states and is expected to discuss further enlargement at its summit in Kazan, Russia later this month.

”One needs to pursue a sovereign policy, have a significant role in international and regional affairs, build good-neighborly and friendly relations with the BRICS countries, and not join in illegitimate sanctions against members of the association,” Ryabkov said at a press conference in Moscow on Thursday, when asked about conditions for aspiring members.

This underlines the absolute and utter stupidity of formerly neutral countries like Sweden and Switzerland giving in to US and EU pressure, abandoning their historical neutralities, and taking sides against Russia. Because now, it’s clear that they’re going to end up losing access to most of the world’s population and half the world’s GDP.

Current BRICS member countries account for about 46% of the world’s population and over 36% of global GDP. At least 34 countries have expressed interest in joining the organization.

It’s a real loss for Switzerland, which has already lost a substantial amount of its historical gold trade to Dubai. True neutrality would have put Switzerland in an ideal position to serve as an economic bridge between the US bloc and the China-Russia bloc, but by choosing to side with the former, they have sacrificed the opportunity to do for global trade what they once did for global diplomacy.

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Will, Not Could

Emmanuel Macron is half-right. But it’s not a situation where the European Union “could die”, it’s one where the collapse of the European Union is absolutely inevitable.

Emmanuel Macron has admitted that the EU ‘could die’ as he issued a dire warning about the bloc’s economy. The French President told the Berlin Global Dialogue event that the EU was over-regulating and under-investing. He also pointed out that both China and the USA outstripped the 27 member-bloc in economic output and investment.

In words reported by the Daily Telegraph, Macron said: ‘The EU could die, we are on a verge of a very important moment. Our former model is over – we are over-regulating and under-investing. In the two to three years to come, if we follow our classical agenda we will be out of the market’.

One of the central tenets of the EU is the “free movement of people”. Which is a necessary component of free trade; the benefits of free trade necessarily derive from labor and capital flowing to the places where production is most advantageous. This already produces serious problems, but with financialization, globalism, and debt completely interfering with these flows, the costs of free movement are even worse than they should be while the benefits are never realized.

Either the nations collapse into civil war and barbarism or the EU does. And it’s clear that more than one-third of the native populations have already figured this out. The worse things get, the more people will understand that the status quo is simply not an option.

And, of course, they’re doing what all bureaucrats do when faced with failure: prescribing more of the poison that is already killing them.

Former Italian Prime Minister and former European Central Bank chief, Mario Draghi, said that the bloc cannot compete alone with the likes of China and the United States and needs a far more integrated single market to create pan-European businesses of the require global scale. 

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An Amateur Take

Andrew Anglin demonstrates that while he’s got astute political observers on his writing committee, he doesn’t have a military historian:

There is a group of commentators on the internet who have been telling people for a year that Iran and its allies, Hezbollah in particular, were well capable of somehow crippling Israel. I don’t want to name names, but if I did want to name names, at the top of the list would be names like “Scott Ritter,” “Pepe Escobar,” and “Jackson Hinkle.”

Anyone who understands the Jewish problem enjoyed hearing from these self-proclaimed experts on the “Axis of Resistance” that Israel was finally going to get its comeuppance. This didn’t seem totally out of the question, given that the IDF has faced significant setbacks in Gaza. However, what we’ve seen in the days since the shocking exploding pager attack of September 17th has demonstrated that the Jews are very much in the game and that there is a very real chance they will have success in their long term objectives in the region.

Reality isn’t based on what we want. Reality stands on its own, regardless of what anyone thinks about it. People who are still claiming that everything the “Axis of Resistance” is doing is going according to plan are delusional, denying basic reality. Hezbollah was the single most important Iranian proxy, and Israel has wiped them out like it was nothing.

Things in the Middle East are looking quite grim, and you should not let anyone tell you otherwise.

It’s always intriguing to see how those who know nothing of war, have never read much about it, have never taken part in wargames, and who really aren’t very interested in the subject never hesitate to opine and even prophesize on the subject.

From the military perspective, nothing has substantially changed in the Middle East except the Israeli military occupation of Gaza has gone from passive containment to active repression and expulsion. The reported decapitation of Hezbollah is the equivalent of a major battle won, not the war itself. And while Nasrallah was a gifted political leader and diplomat, he wasn’t a military strategist; the assassination of Iran’s General Soleimani was a much bigger blow in that regard for the so-called Resistance.

Whether Israel is actually engaged in a full-scale invasion of Lebanon or is merely clearing out a buffer zone in order to permit its 60,000 settlers to return to the north doesn’t matter much in the grand scheme of things. Either way, the IDF, and more importantly, its primary weapons supplier, are being attritted much faster than they can replace their manpower or their weapons. Just as NATO can afford to fight to the last Ukrainian, Iran can afford to fight to the last Arab; remember, for all their words about pan-Islamic unity, the Iranians are not Arabs, they are Persian.

We are now hearing that the leadership of Iran was told by the United States that if they did not retaliate, there would be a ceasefire in Gaza. It’s virtually unfathomable that the Iranians would believe this, but they are apparently so devoted to avoiding war that they are willing to believe anything.

Of course they didn’t believe anything that the “Great Satan” told them. But there is a reason why Iranians call the USA “the Great Satan” and Israel “the Little Satan”. They know which enemy genuinely matters for them; without the significant US support upon which it is dependent, Israel would be overrun within five years. The Iranians understand, as so many media commentators do not, that this is a global war, and that blows to the NATO economies are probably more useful to them than any number of missiles raining down on Tel Aviv.

What happens on the tactical level seldom signifies much at the strategic level, much less the geostrategic level. One of the hardest things for any commander, at any level, to do is to wait for the right moment to engage, especially when everyone is on edge and desperate for someone to something, anything. And as any wargamer knows, taking ground and killing zergs is meaningless if you are expending too many resources to last you until the end of the conflict.

Was it worth the reported 85 Mark 4 JDAMS to eliminate the Hezbollah leadership? Quite possibly, given that the IDF were given 14,000 bomb kits over the last two years by the USA. But at that burn rate, they’d run out in less than half a year. It’s one thing to bomb civilians and a trained militia with the benefit of air supremacy. It’s another to attempt to take on a full-fledged military in possession of the sort of modern air defense systems that prevent anyone from flying anywhere near the battlefield in Ukraine.

Nothing is over. In fact, World War III has barely begun.

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The Expansion of BRICS

BRICS will be growing significantly next month.

The next wave of BRICS expansion will be announced at the group’s annual summit in the Russian city of Kazan in October, Belarusian Foreign Minister Maxim Ryzhenkov has claimed. Speaking on the sidelines of the UN General Assembly in New York, Ryzhenkov predicted that BRICS could add at least ten new members, while expressing optimism that his own country’s application for membership will be approved.

“The first wave of enlargement, as we all expect – those who have submitted such applications – will take place at the Kazan summit,” Ryzhenkov told RIA Novosti. Russia is “formulating the list of these countries that will be in the first wave of enlargement,” he added.

As the current holder of the BRICS chairmanship, Russia will host the group’s annual summit in Kazan from October 22 to 24. Earlier this month, Belarusian First Deputy Foreign Minister Sergey Lukashevich said his country is in the first pool of BRICS candidates, along with Algeria, Bangladesh, Bahrain, Bolivia, Venezuela, Vietnam, Cuba, Honduras, Indonesia, Kazakhstan, Kuwait, Morocco, Nigeria, Palestine, Senegal, and Thailand.

Several other countries, including Türkiye, Zimbabwe, and Burkina Faso, have also shared their intent to join. Founded in 2006 by Russia, China, India, and Brazil, the organization accepted South Africa as a member in 2011. Earlier this year, it expanded to welcome four new member states – Iran, Egypt, Ethiopia and the UAE. So far, at least 34 countries have expressed interest in joining, Russian President Vladimir Putin stated at a senior BRICS meeting earlier in September.

The three most significant countries in that first set are Vietnam, Indonesia, and Nigeria. Clown World has been working hard to try to separate Vietnam from China, and “the Prussians of Asia”, as Lee Kwan Yew described them, are historically the most aggressive nation in Asia. Indonesia is the largest Muslim country and is closely tied economically to China, and Nigeria is the most populous and most advanced African state. Between them, just those three countries have 150 million more people than the entire European Union.

The inclusion of Palestine is also significant, as while BRICS is not a military alliance, the economic power it wields is already formidable, and a boycott by BRICS would be potentially be more devastating than the US sanctions regime on Russia have been. The biggest news, of course, would be if Türkiye is allowed to jump the queue, especially if it exits NATO in the process.

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A Futile Warning

As this lengthy article in Foreign Affairs suggests, some of the smarter clowns realize that BRICS isn’t going away, and that as long as Clown World continues to rule in such a shamelessly hypocritical and unbalanced manner, most of the unaligned nations of the global East and South will choose BRICS over subjugation to Clown World.

The technology competition between China and the United States may lead to the erection of a digital iron curtain and the emergence of two separate and incompatible technological spheres, which would make fence-sitting more challenging. Finding a common denominator in the grouping will become more difficult, particularly on sensitive geopolitical issues such as the war in Ukraine. Those differences might make the bloc less influential on the international stage, even as its efforts to advance alternative currencies to the U.S. dollar gather strength.

For the United States and other Western powers, the dynamics inside BRICS underline the necessity of taking the grouping—and the underlying dissatisfaction with the current order—seriously. It is entirely reasonable for rising powers such as Brazil to search for hedging options and to feel dissatisfied with how the United States has steered the existing system. Western powers should focus on not making things worse by, for example, trying to scare middle powers away from joining BRICS, which smacks of paternalism and quasi-colonial interference. In the same way, Western attempts to warn middle powers in the global South about being too dependent on China have proved ineffective.

Western countries can do more to not alienate those middle powers seeking greater space for maneuver and to ensure that BRICS does not become an anti-Western bloc. They should spell out more clearly how certain sanctions relate to violations of international law, and try to be consistent in applying those sanctions against all violators—not just against geopolitical adversaries. Countries in the global South want to escape the hegemony of the dollar when they see Western countries, for instance, freezing Russian central bank reserves in 2022 as a response to the invasion of Ukraine but receiving no punishment for similarly unlawful military interventions in the Middle East and Africa. Wealthy countries can also be better problem solvers for poorer countries, including by sharing technology and assisting with the green transition. And the West should make more genuine efforts to democratize the global order, such as by doing away with the anachronistic tradition that only Europeans head the IMF and only U.S. citizens lead the World Bank.

Such actions would build trust and undermine Chinese and Russian attempts to enlist the global South to an anti-Western cause. Rather than bemoaning the emergence of the BRICS, the West should court those member states that have a stake in making sure that the grouping does not become an overtly anti-Western outfit intent on undermining the global order.

It’s somewhat amusing that after admitting how all of the previous predictions of the inevitable failure of BRICS for the last 18 years have been wrong, the Foreign Affairs analysts point to the material signs of its success – more than 40 countries asking for permission to join BRICS – as evidence the expansion of the group’s membership and influence will somehow damage the international bloc by reducing the cohesiveness between the neutral faction (Brazil and India) and the anti-Clown faction (China, Iran, and Russia). This, of course, completely misses the point, which is that neither faction has any intention of submitting to, or obeying, the hypocritical and self-serving dictates of the so-called “neoliberal rules-based global order” that we call Clown World.

And the solution recommended is impossible at the present. By any and every standard of so-called “international law”, Israel should be as heavily sanctioned by the “rules-based world order” as Russia is. Israel is observably bombing civilians in Lebanon and engaging in ethnic cleansing in Palestine, while Russia is fighting a war to defend Russians living in historically Russian territory who were under attack for more than a decade by the foreign, Clown World-installed, Kiev regime. Every sanction that has been applied to Russia should, under any sane, rational, or fair standard, have also been applied to Israel. Even more egregiously, many of those anti-Russian sanctions have also been applied to Belarus, which hasn’t done anything at all to any of its neighbors.

Simplicius notes: Israel continues to pummel Lebanon, proving itself to be the only country in the world that can literally bomb and invade all of its neighbors at will without serious international consequences. Note I said consequences, not ‘condemnation’. There’s plenty of the latter to go around, but it doesn’t lead to anything tangible because all global institutions are co-opted, captured, and compromised by the Hydra, and as such only pay lip service to tragedies perpetrated by their clients and masters alike. Isn’t it interesting how—just to take one small example of many—the Chess world’s FIDE organization has banned not only Russia but even Belarus merely as offhand accomplice, yet Israel, for an actual holocaust it’s committing on its neighbors, has not been banned. The same goes for the Olympics, EuroVision, and other contests; it’s quite incredible when you think about it.

It’s not as if anyone doesn’t notice this. Regardless of how far you think Israel’s right to defend itself should extend, everyone around the world has seen that the rules of the “rules-based world order” are unjust and are applied unevenly, which is why they quite naturally no longer want any part of it. Because, obviously, if major powers like China and Russia can be sanctioned, how much more easily can smaller nations be subjected to the same treatment if they don’t submit slavishly to Clown World’s unending demands?

The rulers of Clown World have simply never understood that the king is not above the law, he is more strictly bound by the law than any of his subjects. And when he refuses to be bound by the law, he ceases to be legitimate and thereby loses the Mandate of Heaven.

Unless Clown World ceases to be what it is, the rest of the world will prefer the alternative, any alternative, that promises not to punish them for doing no more than pursuing their reasonable national interests. Which is why, I suspect, more than a few nations that are presently under the domination of Clown World will seek to free themselves from it, beginning with Turkiye, and followed soon after, one would expect, by Hungary and Switzerland.

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Very Bad Business

I’m extremely skeptical, but it is now being reported that Israel actually manufactured the exploding pagers and walkie-talkies that injured more than 7,000 people in Lebanon:

The Israeli secret service didn’t just tamper with the deadly Hezbollah pagers — they made them from scratch, having set up a complex web of shell companies across Europe, it was claimed today. Initially it was suspected that Mossad had managed to intercept and plant tiny bombs in a shipment of the pagers headed for the Iranian-backed terror group in Lebanon after thousands of people were injured and dozens killed.

But now it appears that the Israelis set up front companies across Europe to manufacture the pagers themselves, embedding small amounts of PETN explosive inside, ready to be detonated by a coded message. Israel has neither confirmed nor denied any role in the explosions, but 12 current and former defence and intelligence officials told the New York Times that the Israelis were behind it, describing the operation as ‘complex and long’.

First, this strikes me as damage control. People are quite likely concerned that their Apple and Android smartphones can be blown up, and it would make sense that the World Economic Forum types would want to squelch any question of the integrity of the global supply chains as rapidly as possible. I think it’s much more likely that the manufacturing process was infiltrated and the explosives were inserted without the knowledge of more than a few people at the factory. But it could still be as bad as a software attack on an intrinsic vulnerability of lithium-ion batteries, for all we know.

Second, this is arguably more destructive in the long term to the Israeli economy than the whole Boycott Diversify Sanctions movement has been. Even a die-hard Zionist might well want to avoid any Israeli-linked hardware device going forward.

Imagine when they move onto cars…

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Europe’s Economic Suicide

This is not an accident. It’s not as if everyone with an economics degree didn’t see the economic meltdown coming when the EU decided to prevent its member states from using Russian gas:

The European Union decided to analyze why their economy is collapsing. They commissioned the former head of the European Central Bank, Mario Draghi, to figure this out.

It is noteworthy that the study was commissioned by the European Commission, but the conclusions were still disappointing. Draghi came to the conclusion that the basis of Europe’s economic problems is the cost of energy for industry – electricity is 158% more expensive than in the US, natural gas – 345%.

Thus, in fact, Ursula von der Leyen’s department confirmed its own professional incompetence with statistics and research, because thanks to anti-Russian sanctions, there was a vast jump in energy prices and, as a result, a decline in the economy.

The wicked and self-destructive nature of the EU can be seen in its embrace of migrants – who are supposed to help the economy, but are massive net economic and social negatives – combined with its rejection of Russian energy – which was always going to destroy the economy. There are only two reasons for member states to continue to stay in the EU: 1) transfer payments to the member state and 2) corrupt politicians working against the interests of the nation.

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They Always Kill the Golden Goose

It’s truly amazing that more than 100 years after economists formally discovered the concept of declining marginal returns, the rulers of Clown World continue to insist on driving a nation’s most successful entrepreneurs out of the country.

Britain’s richest plumber has put his £12million London penthouse on the market as he prepares to flee Britain ahead of a mooted Labour tax raid. Charlie Mullins, who founded Pimlico Plumbers, has said he wants to have ‘no assets in the UK whatsoever’ and intends on not paying tax next year as he leaves the country.

The 71-year-old, who made £145million when he sold his firm in 2021, had moved into the property the same year after falling in love with the view over the River Thames. But now he wants to get rid of the flat, which neighbours an apartment owned by Tom Jones, insisting that his family would ‘go mad’ if they had to pay inheritance tax because of it.

The businessman said he is concerned the new chancellor Rachel Reeves will increase death taxes and is instead ploughing his money into property in Spain and Dubai… Henley & Partners, which helps wealthy investors to move overseas, estimates that Britain is on track to lose a record 9,500 millionaires this year

Of course, this seeming stupidity is probably much more accurately attributed to economically-informed malice. If destroying the nation is the objective, then impoverishing it and driving out the nation’s most successful entrepreneurs away is going to be viewed as a positive.

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Reading the Economic Winds

Turkiye has asked to join BRICS.

Turkiye has formally requested to join the BRICS group of emerging economies, Bloomberg cited informed sources as saying on 2 September.

Ankara “seeks to bolster its global influence and forge new ties beyond its traditional Western allies,” the sources said. President Recep Tayyip Erdogan believes “that the geopolitical center of gravity is shifting away from developed economies” and that the push to join BRICS “reflects its aspirations to cultivate ties with all sides in a multipolar world, while still fulfilling its obligations as a key member of NATO.”

Turkish Foreign Minister Hakan Fidan said in early June that BRICS serves as a good alternative to the EU. Later that month, he confirmed that dialogue between Ankara and BRICS nations was ongoing – coming as Turkish frustration continued to grow due to stalled efforts to join the EU.

It wouldn’t be surprising if China and Russia inform Turkiye that before it can join BRICS, it has to leave NATO. With both the leading powers at de facto war with the USA, I don’t see how they can permit a country with an Article 5 obligation – however flimsy and easily-evaded – to go to war with them to join the organization. Of course, this may be part of the process that Erdogan anticipates; since BRICS is clearly of far more value to Turkiye than NATO, he might simply want the excuse of reacting to a BRICSian demand rather than proactively leaving NATO of his own accord.

But one way or another, I expect Turkiye to join BRICS and leave NATO. I also suspect that Macron’s brief and bizarre expression of interest in having France join BRICS was a test to see if BRICS would potentially consider accepting a NATO member, in order to see if it would be necessary to try forestalling Turkiye’s application.

And considering that Switzerland is still foolishly wandering down the path toward taking sides with NATO and the EU, Turkiye may well find themselves in an optimal geopolitical position, filling the very profitable space between BRICS and Clown World that Switzerland played in the 20th century during both World Wars and the Cold War.

UPDATE: Turkish President Recep Tayyip Erdogan has accepted the Kremlin’s invitation to attend the BRICS summit in the Russian city of Kazan next month, Russian presidential aide Yury Ushakov said on Tuesday.

It looks like the Turks are changing sides. As I’ve mentioned before, we’ll know the total collapse of Clown World is upon us when Japan does the same.

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Weimar Britain

And no, this isn’t a result of Brexit. Germany is in even worse shape. But regardless, it is clear that the decision to back Ukraine has been a fatal one for the British economy, the coming collapse of which is becoming increasingly obvious in the wake of Ukraine’s recent defaulting on its massive debt:

22 July 2024: we have a deal!
Almost as soon as Zelensky’s visit in London concluded, the Government of Ukraine announced that a deal was reached with its main bondholders to restructure the country’s near-$20 billion worth of bonds, including a 37% reduction of the amounts owed. But this was only “an agreement, in principle,” reached with an “ad-hoc creditor committee,” and it wasn’t binding on all the bondholders. Instead, it imposed on Ukraine’s government “the Restructuring as soon as practicable,” to be implemented through a “consent solicitation.” In other words, Ukraine was expected to chase after its creditors and beg them to accept the deal, even offering them a 1.25% “consent fee.” Well, things were about to take a sharp turn for the worse…

24 July 2024: Ukraine strikes the Fitch iceberg
Only two days after Ukraine announced the deal with their bondholders, Fitch downgraded Ukraine’s credit rating from CC to C, reflecting extreme credit risk reserved for countries that “entered default or default-like process.” Significantly, Fitch made it explicit that “the publication of sovereign reviews is subject to restrictions and must take place according to a published schedule…”

31 July 2024: Zelensky ‘temporarily’ suspends debt repayments
Zelensky signed a law enabling Ukraine to suspend payments of external debts for two months (or longer).

Thursday, August 1 2024: debt repayments freeze takes effect
Bondholders’ grace period expires; Zelensky’s unilateral debt repayments freeze takes effect.

What’s peculiar about the British financial system is that the taxpayers are obliged to reimburse the Bank of England for any losses it sustains on its balance sheet assets. If the price of gilts on the bank’s balance sheet collapses, British taxpayers must cover those losses and make the bank whole. So, what kind of money are we talking about? As the the FT reported last July, the BOE has estimated it will require the Treasury to transfer a total of £150 billion by 2033 to cover expected losses on the central bank’s quantitative easing program.

So how much is £150 billion? Provided that things haven’t deteriorated since July 2023 (they have), we’re talking £2,240 per man, woman and child in Britain. Stand and deliver: that’s the ransom that the BOE is claiming from them! But given that the British workforce is only about half the population, and that private enterprise accounts for less than 55% of the British GDP, this sum represents nearly £10,000 per employee working in the private sector.

In all, the situation is impossible and all the cabinet reshuffles and cosmetic patches changed nothing of substance in the UK; they amounted to a sort of rearranging the deck-chairs on the Titanic as the ship is already sinking.

Translation: Ukraine is bankrupt and can’t even pretend that it’s going to repay all of its massive war-related debts after defeating the Russians. The economic collapse of the Ukrainian government will lead to a political collapse and the military collapse of its armed forces; Russia’s increasingly rapid advances in the Donbass are in part due to the beginning stages of the latter. And the surrender of Ukraine may lead directly to the economic collapse of Britain as well as several countries inside the EU, most likely those most deeply invested in Ukraine, which includes the Baltics, Germany, and Poland.

28 August 2024: Game Over? Ukraine Announces Partial Halt to Payments on Its Gargantuan Debt

This is the genius of Putin’s patient multi-front attritional strategy and why he has an economist running the Russian Ministry of Defense. He never needed to bomb Britain or Berlin in order to comprehensively defeat them. And as for the USA, well, China and Iran are taking the lead with regards to the Clown World’s major stronghold.

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