The Self-Imposed Impotence of the
Russian and Chinese Governments
The Self-Imposed Impotence of the
Russian and Chinese Governments
Paul Craig Roberts
The Russian and Chinese governments
are puzzling. They hold all the cards in the sanction wars and sit there with
no wits whatsoever as to how to play them.
The Russians won’t get any help from
the Western media which obscures the issue by stressing that the Russian
government doesn’t want to deprive its citizens of consumer goods from the
West, which is precisely what Washington’s sanctions intend to do.
The Russian and Chinese governments
are in Washington’s hands because Russia and China, thinking that capitalism
had won, quickly adopted American neoliberal economics, which is a propaganda
device that serves only American interests.
For years NASA has been unable to
function without Russian rocket engines. Despite all the sanctions, insults,
military provocations, the Russian government still sends NASA the engines.
Why? Because the Russian economists tell the government that foreign exchange
is essential to Russia’s development.
Europe is dependent on Russian energy
to run its factories and to keep warm in winter. But Russia does not turn off
the energy in response to Europe’s participation in Washington’s sanctions,
because the Russian economists tell the government that foreign exchange is
essential to Russia’s development.
As Michael Hudson and I explained on
a number of occasions, this is nonsense. Russia’s development is dependent in
no way on the acquisition of foreign currencies.
The Russians are also convinced that
they need foreign investment, which serves only to drain profits out of their
economy.
The Russians are also convinced that
they should freely trade their currency, thereby subjecting the ruble to
manipulation on foreign exchange markets. If Washington wants to bring a
currency crisis to Russia, all the Federal Reserve, its vassal Japanese, EU,
and UK central banks have to do is to short the ruble. Hedge funds and
speculators join in for the profits.
Neoliberal economics is a hoax, and
the Russians have fallen for it.
So have the Chinese
Suppose that when all these
accusations against Russia began—take the alleged attack on the Skirpals for
example—Putin had stood up and said: “The British government is lying through
its teeth and so is every government including that of Washington that echoes
this lie. Russia regards this lie as highly provocative and as a part of a
propaganda campaign to prepare Western peoples for military attack on Russia.
The constant stream of gratuitous lies and military exercises on our border
have convinced Russia that the West intends war. The consequence will be the
total destruction of the United States and its puppets.”
That would have been the end of the
gratuitous provocations, military exercises, and sanctions.
Instead, we heard about
“misunderstandings” with out “American partners,” which encouraged more lies
and more provocations.
Or, for a more mild response, Putin
could have announced: “As Washington and its servile European puppets have
sanctioned us, we are turning off the rocket engines, all energy to Europe,
titanium to US aircraft companies, banning overflights of US cargo and
passenger aircraft, and putting in place punitive measures against all US firms
operating in Russia.”
One reason, perhaps, that Russia does
not do this in addition to Russia’s mistaken belief that it needs Western money
and good will is that Russia mistakenly thinks that Washington will steal their
European energy market and ship natural gas to Europe. No such infrastructure
exists. It would take several years to develop the infrastructure. By then
Europe would have mass unemployment and would have frozen in several winters.
What about China? China hosts a large
number of major US corporations, including Apple, the largest capitalized
corporation in the world. China can simply nationalize without compensation, as
South Africa is doing to white South African farmers without any Western
protest, all global corporations operating in China. Washington would be
overwhelmed with global corporations demanding removal of every sanction on
China and complete subservience of Washington to the Chinese government.
Or, or in addition, China could dump
all $1.2 trillion of its US Treasuries. The Federal Reserve would quickly print
the money to buy the bonds so that the price did not collapse. China could then
dump the dollars that the Fed printed in order to redeem the bonds. The Fed
cannot print the foreign curriences with which to purchase the dollars. The
dollar would plummet and not be worth a Venezuelan bolivar unless Washington
could order its pupper foreign central banks in Japan, UK, and EU to print
their currencies in order to purchase the dollars. This, even if complied with,
would cause a great deal of stress in what is called “the Western alliance,”
but what is really Washington’s Empire.
Why don’t the Russian and Chinese
play their winning hands? The reason is that neither government has any
advisers who are not brainwashed by neoliberalism. The brainwashing that
Americans gave Russia during the Yeltsin years has been institutionalized in
Russian institutions. Trapped in this box, Russia is a sitting duck for
Washington.
Turkey is a perfect opportunity for
Russia and China to step forward and remove Turkey from NATO. The two countries
could offer Turkey membership in BRICS, trade deals, and mutual security
treaties. China could easily buy up the Turkish currency off foreign exchange
markets. The same could be done for Iran. Yet neither Russia nor China appear
capable of decisive action. The two countries, both under attack as Turkey is
from Washington, sit there sucking their thumbs. https://www.zerohedge.com/news/2018-08-11/us-risks-completely-losing-turkey-erdogan-vows-defy-us-threats-over-pastor-brunson
by Tyler Durden
Sat, 08/11/2018 - 09:43
Turkey President Recep Tayyip Erdogan hit back
Saturday at US "threats" over detained American pastor Brunson which
has escalated tensions between the two NATO allies, sent the Turkish currency
into a historic nosedive on Friday and crashed Turkish capital markets.
"It is wrong to dare bring Turkey to its knees
through threats over a pastor," Erdogan lashed out during a rally in the Black Sea town of Unye.
"I am calling on those in America again. Shame on
you, shame on you. You are exchanging your strategic partner in NATO for a
priest."
"They are threatening us. You cannot tame our
people with threats" but perhaps a collapse in the stock market will
suffice: the Turkish lira crashed as much as 20% against the dollar on Friday,
its biggest drop on record, after President Trump announced he would double
steel and aluminium tariffs on Turkey, adding to pressure to Turkey's troubled
economy. The White House has said the newly-imposed sanctions would take effect
from August 13.
Turkey remains at an impasse with the United States in
one of the worst diplomatic spats in years over the nearly two-year detention
of American pastor Andrew Brunson and a host of other issues. But Erdogan urged
Turks not to be panicked by the currency crisis, saying on Friday that "if
they have the dollar, we have Allah."
He also advised them to show solidarity by converting
any stashed-away gold or foreign currency to Turkish lira in a bid to wage a
"war of independence" against America.
Commenting on the possibility of Brunson's release,
Erdogan said Turkey will act in accordance with the law, saying: "We have
not made concessions on justice so far, and we will never make any."
And he brushed off the issue of tariffs: "They
say we will not give this or that. Don't give. What we have is
enough for us."
* * *
Separately, on Saturday a spokesman for Erdogan,
Ibrahim Kalin, wrote an Op-Ed in the Daily Sabah newspaper titled "Turkey's Resolve" in which he warned that "the U.S. runs the
risk of losing Turkey as a whole" and said that "the entire Turkish
public is against U.S. policies that disregard Turkey's legitimate security
demands. Threats, sanctions and bullying against Turkey will not work. It will
only increase Turkey's resolve. But it will also further isolate the U.S. in
both Turkey and on the international scene."
The Trump administration has already picked fights
with Canada, Mexico, Cuba, China, Russia, NATO, Germany and other countries for
mostly domestic reasons. This has only damaged the credibility of the U.S. as a
reliable partner and ally. The perception is not any different in Turkey.
He also hinted that as the US cracks down on Turkey,
the country will seek out other strategic alliances with countries and
"will also continue to diversify its energy sources and financial
alternatives. This is only natural given Turkey's geopolitical standing and the
realities of 21st century diplomacy."
As Turkey expands its foreign policy outlook, it will
not give up on its independence and sovereignty. It will continue to develop
relations with all countries based on equality, mutual interest and partnership.
It will also continue to diversify its energy sources and financial
alternatives. This is only natural given Turkey's geopolitical standing and the
realities of 21st century diplomacy.
Naturally, such an appeal to nationalist emotions was
to be expected, as was Turkey's continued defiance. But the question remains:
how much longer can the Turkish people, and its government, continue to pretend
nothing has changed even as inflation soars, the currency crumbles, and the
economy grinds to a halt.
The full Op-Ed is below (link):
Turkey's resolve
When the Gülenist Terror Group (FETÖ) members launched
a coup attempt on July 15, 2016, many international commentators predicted a
total collapse of the Turkish state and the economy. But Turkey grew stronger
out of this dark day and continued on its path of political stability and
economic development. Two years later, the crisis with the Trump administration
over a pastor and the fluctuations in the currency market will not diminish
Turkey's resolve.
The June 24 elections, where more than 50 millions Turkish
voters went to the polls, gave President Erdoğan another mandate for the next five years. The
election results were also a confirmation of the new presidential system which
will lessen bureaucracy and increase efficient governance. Last week, President
Erdoğan announced the
100-day action plan for ongoing and new projects. Treasury and Finance Minister
Berat Albayrak will announce the midterm economic plan and set new goals for
the Turkish economy. On Oct. 29, the new mega airport in Istanbul will be opened.
The number of tourists visiting Turkey this year are expected to reach nearly
40 million. Major public projects continue as planned. All this shows the
resilience of Turkish state institutions and the economy.
Having said that, it is also a fact that the Turkish
lira losing value against the U.S. dollar is a challenge. But it is a challenge
Turkey is ready to confront. The issue, however, is larger than just a currency
war. The Trump
administration's decision to sanction two Turkish ministers over the issue of
pastor Brunson, who is under house arrest in Turkey on terrorism-related
charges, has set a new low in Turkish-U.S. relations. Efforts by the Turkish
side to resolve this issue through diplomatic channels has been rejected by the
U.S. side. Turkey's good intentions and result-oriented approaches have
been sidelined by the ideological attitudes and the "my way or high
way" approach of the Trump White House.
Turkey is right to demand that its security concerns
be taken seriously by its NATO ally. But instead, the U.S. government, under
both Obama and Trump, has done practically nothing to address Turkey's
objections in regards to U.S. engagement with the PKK's Syria branch – the Democratic Union Party (PYD) and the People's
Protection Units (YPG) –and the presence of the FETÖ network in the U.S.
Neither the fight against Daesh nor the U.S. system can be an excuse to justify
policies and attitudes that hurt Turkey's national security interests and harm
Turkish-U.S. relations.
The U.S. runs the risk of losing Turkey as a
whole. The entire Turkish public is against U.S. policies that
disregard Turkey's legitimate security demands. Threats, sanctions and bullying
against Turkey will not work. It will only increase Turkey's resolve. But it
will also further isolate the U.S. in both Turkey and on the international
scene. The Trump administration has already picked fights with
Canada, Mexico, Cuba, China, Russia, NATO, Germany and other countries for
mostly domestic reasons. This has only damaged the credibility of the U.S.
as a reliable partner and ally. The perception is not any different in Turkey.
Turkey will not give in to threats, pressures,
sanctions or financial operations against its currency and financial markets. It will not put others' demands over its own
security demands. As a NATO ally, it has done more than its share to provide
security for all. It has stood by its allies against all forms of
terrorism. It has cooperated with them to eliminate terrorist threats
against their countries. It is only natural that it demands its allies to
reciprocate. Yet its allies have done little or nothing to help Turkey in its
fight against the PKK and FETÖ terrorist groups.
As Turkey expands its foreign policy outlook, it will
not give up on its independence and sovereignty. It will continue to develop
relations with all countries based on equality, mutual interest and
partnership. It will also continue to diversify its energy sources and
financial alternatives. This is only natural given Turkey's geopolitical standing
and the realities of 21st century diplomacy.
Having seen military coups, terrorist attacks and
financial operations, Turkey has only strengthened its resolve and resilience. No
threats or attacks will change that.
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