Saturday, January 3, 2015

Nuclear War



Written by Dr. Paul Craig Roberts
Dear Readers: The conflict that Washington has initiated between the West and Russia/China is reckless and irresponsible. Nuclear war could be the outcome. Indeed, Washington has been preparing for nuclear war since the George W. Bush regime.
Washington has revised US war doctrine in order to initiate conflict with a first strike nuclear attack.
Washington has discarded the ABM treaty in order to build and deploy anti-ballistic missiles that are intended to prevent a retaliatory strike against the US. Washington is engaged in a buildup of military forces on Russia’s borders, and Washington is demonizing Russia’s government with false charges.
As the Bush/Obama regimes dismantled the safeguards put in place in order to minimize the risk of nuclear war, no protests came from the American public or the media. Washington’s European vassal states have also been silent.
Washington’s drive for hegemony has brought nuclear insanity to the world.
Moscow and Beijing understand that they are Washington’s targets. As Larchmonter explains, Russia and China are conjoining their economic and military capabilities in order to protect against Washington’s attack. (Read what Larchmonter reports. Open the URL in my column below and run your cursor over the bottom of the page and click “page fit.” Choose 50% and readable text will fill your screen.)
Washington’s demonization of Saddam Hussein, Gaddafi, and Assad were preludes to military attacks on Iraq, Libya, and Syria. In view of these precedents, it is reasonable to regard Washington’s demonization of Vladimir Putin as a prelude to military action.
Russia is not Iraq, Libya, or Syria. Russian war doctrine states that Russia can use nuclear weapons in response to a nuclear or conventional attack on Russia. For the world to sit silent while Washington’s arrogance provokes armageddon telegraphs total political failure. Where are the voices in behalf of humanity?
The outlook for the New Year
Washington has shaped 2015 to be a year of conflict. The conflict could be intense.
Washington is the cause of the conflict, which has been brewing for some time. Russia was too weak to do anything about it when the Clinton regime pushed NATO to Russia’s borders and illegally attacked Yugoslavia, breaking the country into small easily controlled pieces. Russia was also too weak to do anything about it when the George W. Bush regime withdrew from the ABM treaty and undertook to locate anti-ballistic missile bases on Russia’s borders. Washington lied to Moscow that the purpose of the ABM bases is to protect Europe from non-existent Iranian nuclear ICBMs. However, Moscow understood that the purpose of the ABM bases is to degrade Russia’s nuclear deterrent, thereby enhancing Washington’s ability to coerce Russia into agreements that compromise Russian sovereignty.
By summer 2008 Russian power had returned. On Washington’s orders, the US and Israeli trained and equipped Georgian army attacked the breakaway republic of South Ossetia during the early hours of August 8, killing Russian peacekeepers and civilian population. Units of the Russian military instantly responded and within a few hours the American trained and equipped Georgian army was routed and defeated. Georgia was in Russia’s hands again, where the province had resided during the 19th and 20th centuries.
Putin should have hung Mikheil Saakashvili, the American puppet installed as president of Georgia by the Washington-instigated “Rose Revolution”, and reincorporated Georgia into the Russian Federation. Instead, in a strategic error, Russia withdrew its forces, leaving Washington’s puppet regime in place to cause future trouble for Russia. Washington is pushing hard to incorporate Georgia into NATO, thus adding more US military bases on Russia’s border. However, at the time, Moscow thought Europe to be more independent of Washington than it is and relied on good relations with Europe to keep American bases out of Georgia.
Today the Russian government no longer has any illusion that Europe is capable of an independent foreign policy. Russian President Vladimir Putin has stated publicly that Russia has learned that diplomacy with Europe is pointless, because European politicians represent Washington’s interest, not Europe’s. Foreign Minister Sergei Lavrov recently acknowledged that Europe’s Captive Nation status has made it clear to Russia that Russian goodwill gestures are unable to produce diplomatic results.
With Moscow’s delusion shattered that diplomacy with the West can produce peaceful solutions, reality has set in, reinforced by the demonization of Vladimir Putin by Washington and its vassal states. Hillary Clinton called Putin the new Hitler. While Washington incorporates former constituent parts of the Russian and Soviet empires into its own empire and bombs seven countries, Washington claims that Putin is militarily aggressive and intends to reconstitute the Soviet empire. Washington arms the neo-nazi regime Obama established in Ukraine, while erroneously claiming that Putin has invaded and annexed Ukrainian provinces. All of these blatant lies are echoed repeatedly by the Western presstitutes. Not even Hitler had such a compliant media as Washington has.
Every diplomatic effort by Russia has been blocked by Washington and has come to naught. So now Russia has been forced by reality to update its military doctrine. The new doctrine approved on December 26 states that the US and NATO comprise a major military threat to the existence of Russia as a sovereign independent country.
The Russian document cites Washington’s war doctrine of pre-emptive nuclear attack, deployment of anti-ballistic missiles, buildup of NATO forces, and intent to deploy weapons in space as clear indications that Washington is preparing to attack Russia.
Washington is also conducting economic and political warfare against Russia, attempting to destabilize the economy with economic sanctions and attacks on the ruble. The Russian document acknowledges that Russia faces Western threats of regime change achieved through “actions aimed at violent change of the Russian constitutional order, destabilization of the political and social environment, and disorganization of the functioning of governmental bodies, crucial civilian and military facilities and informational infrastructure of Russia.” Foreign financed NGOs and foreign owned Russian media are tools in Washington’s hands for destabilizing Russia.
Washington’s reckless aggressive policy against Russia has resurrected the nuclear arms race. Russia is developing two new ICBM systems and in 2016 will deploy a weapons system designed to negate the US anti-ballistic missile system. In short, the evil warmongers that rule in Washington have set the world on the path to nuclear armageddon.
The Russian and Chinese governments both understand that their existence is threatened by Washington’s hegemonic ambitions. Larchmonter reports that in order to defeat Washington’s plans to marginalize both countries, the Russian and Chinese governments have decided to unify their economies into one and to conjoin their military commands. Henceforth, Russia and China move together on the economic and military fronts.
The unity of the Bear and the Dragon reduces the crazed neoconservatives’ dream of “an American century” to dangerous nonsense. As Larchmonter puts it, “The US and NATO would need Michael the Archangel to defeat China-Russia, and from all signs Michael the Archangel is aligned with the Bear and its Orthodox culture. There is no weapon, no strategy, no tactic conceivable in the near future to damage either of these rising economies now that they are ‘base pairs.’”
Larchmonter sees hope in the new geopolitics created by the conjoining of Russia and China. I don’t dispute this, but if the arrogant neoconservatives realize that their hegemonic policy has created a foe over which Washington cannot prevail, they will push for a pre-emptive nuclear strike before the Russian-Chinese unified command is fully operational. To forestall a sneak attack, Russia and China should operate on full nuclear alert.
The US economy–indeed the entire Western orientated economy from Japan to Europe–is a house of cards. Since the economic downturn began seven years ago, the entirety of Western economic policy has been diverted to the support of a few over-sized banks, sovereign debt, and the US dollar. Consequently, the economies themselves and the ability of populations to cope have deteriorated.
The financial markets are based on manipulation, not on fundamentals. The manipulation is untenable. With debt exploding, negative real interest rates make no sense. With real consumer incomes, real consumer credit, and real retail sales stagnant or falling, the stock market is a bubble. With Russia, China, and other countries moving away from the use of the dollar to settle international accounts, with Russia developing an alternative to the SWIFT financial network, the BRICS developing alternatives to the IMF and World Bank, and with other parts of the world developing their own credit card and Internet systems, the US dollar, along with the Japanese and European currencies that are being printed in order to support the dollar’s exchange value, could experience a dramatic drop in exchange value, which would make the import-dependent Western world dysfunctional.
In my opinion, it took the Russians and Chinese too long to comprehend the evil that has control in Washington. Therefore, both countries risk nuclear attack prior to the full operational capability of their conjoined defense. As the Western economy is a house of cards, Russia and China could collapse the Western economy before the neoconservatives can drive the world to war. As Washington’s aggression against both countries is crystal clear, Russia and China have every right to the following defensive measures.
As the US and EU are conducting economic warfare against Russia, Russia could claim that by wrecking the Russian economy the West has deprived Russia of the ability to repay loans to the European banks. If this does not bring down the thinly capitalized EU banks, Russia can announce that as NATO countries are now officially recognized by Russian war doctrine as an enemy of the Russian state, Russia can no longer support NATO’s aggression against Russia by selling natural gas to NATO members. If the shutdown of much of European industry, rapidly rising rates of unemployment, and bank failures do not result in the dissolution of NATO and thus the end of the threat, the Chinese can act.
The Chinese hold a very large amount of dollar-denominated financial assets. Just as the Federal Reserve’s agents, the bullion banks, dump massive shorts onto the bullion futures markets during periods of little activity in order to drive down the bullion price, China can dump the equivalent in US Treasuries of years of Quantitative Easing in a few minutes. If the Federal Reserve quickly creates dollars with which to purchase the enormous quantity of Treasuries so that the financial house of cards does not implode, the Chinese can then dump the dollars that they are paid for the bonds in the currency market. Whereas the Federal Reserve can print dollars with which to purchase the Treasuries, the Fed cannot print foreign currencies with which to buy the dollars.
The dollar would collapse, and with it the power of the Hegemon. The war would be over without a shot or missile fired.
In my view, Russia and China owe it to the world to prevent the nuclear war intended by the neoconservatives simply by replying in kind to Washington’s economic warfare. Russia and China hold all the cards. Not Washington.
Russia and China should give no warning. They should just act. Indeed, instead of step by step, Russia and China could simultaneously use the counter-measures. With four US banks holding derivatives totaling many times world GDP, the financial explosion would be the equivalent to a nuclear one. The US and Europe would be finished, and the world would be saved.
Larchmonter possibly is correct. 2015 could be a very good year, but pre-emptive economic moves by Moscow and Beijing could be required. Putin’s current plan seems to be to turn away from the West, ignore the provocations, and mesh Russia’s strategic and economic interests with those of Asia. This is a humane and reasonable course of action, but it leaves the West untroubled and undistracted by its economic vulnerabilities. An untroubled West remains a grave danger not only to Russia and China but also to Americans and the entire world.

Dr. Paul Craig Roberts was Assistant Secretary of the Treasury for Economic Policy and associate editor of the Wall Street Journal. He was columnist for Business Week, Scripps Howard News Service, and Creators Syndicate. He has had many university appointments. His internet columns have attracted a worldwide following. Roberts' latest books are The Failure of Laissez Faire Capitalism and Economic Dissolution of the West and How America Was Lost. The article was originally published on his website: paulcraigroberts.org.
HRJ/HRJ

Indonesia: Playing With Fire in the South China Sea

Image Credit: Indonesian Navy Troops via
Shutterstock.com
Indonesia: Playing With
Fire in the South China
Sea
Indonesia’s new president could
jeopardize bilateral relations and
ASEAN unity with his maritime
“shock therapy.”
On December 5 newly installed President
Joko Widodo ordered Indonesian authorities to set fire to and sink three Vietnamese
boats caught fishing illegally in waters near the Anambas Islands. This incident was
covered by the media and given widespread publicity.
The following day Indonesia officially announced its new policy of “shock therapy” for
illegal poachers. President Widodo told Antara News Agency, “We sunk three of them
on Friday to teach them a lesson, so that they will give up poaching in Indonesian
waters.” According to Tedjo Edhy Purdijatno, Coordinating Minister for Political, Legal
and Security Affairs, Indonesia intended to demonstrate “stern government action” and
would sink five Thai fishing boats seized near West Kalimantan after President Widodo
announced his get-tough policy.
President Widodo offered a justification for his actions in a series of interviews with the
foreign press. Widodo told The Wall Street Journal, “Every day there [are] around
5,400 [foreign] boats in our ocean and our sea. And 90% of them are illegal. So to give
shock therapy to them, of course, we [are] sinking them.” Government authorities
estimated that Indonesia looses more than $20 billion annually due to illegal fishing.
President Widodo also noted that Vietnam was not being singled out. He claimed that
fishing boats sailing under the flag of any other nation engaged in illegal fishing would
be treated on the same basis. Under legislation adopted in 2009, relevant Indonesian
authorities may impound or sink fishing vessels operating in Indonesian water without
proper permits.
In an interview with the Indonesian language service of the Voice of America, President
Widodo was quoted as stating, “I instructed the ministry, the military commander, that
this [illegal fishing] couldn’t continue. I instructed them three or four weeks ago to sink
ships involved in illegal fishing. Sink them! No more! But thank Allah, last Friday, we
started sinking several ships.”
By Carl Thayer
December 18, 2014
Indonesia: Playing With Fire in the South China Sea | The Diplomat Page 1 of 4
http://thediplomat.com/2014/12/indonesia-playing-with-fire-in-the-south-china-sea/ 19/12/2014
President Widodo also told Agence France Presse, “I asked our foreign minister to
explain that this is a purely criminal issue and has nothing to do with neighborly
relations.”
Susi Pudjiastuti, Minister for Maritime Affairs and Fisheries, revealed that a week prior
to the burning of the Vietnamese boats she had alerted the ambassadors from Malaysia,
the Philippines, and Thailand, but apparently not Vietnam, that Indonesia was moving
to impose sanctions and tougher regulations for illegal fishing in its waters.
Five countries are the major source of illegal fishing in Indonesian waters: China,
Malaysia, the Philippines, Thailand and Vietnam. Within five days of President
Widodo’s announcement of his “shock therapy” policy Indonesia seized 155 foreign
fishing vessels.
Minister Susi Pudjiastuti reported that Indonesia’s shock therapy resulted in a dramatic
drop in foreign boats operating around Natuna Island. She also claimed that no harm
was done to Indonesia’s relations with neighboring countries. Still, President Widodo’s
policy of shock therapy raises questions about Indonesia’s treatment of its long-time
political and diplomatic ally, Vietnam.
On June 27, 2013 Indonesia and Vietnam publicly announced that they had raised their
bilateral relations to a strategic partnership. Points 10 and 11 of the Joint Statement
announcing the strategic partnership stated:
10. The two leaders observed the progress in the fisheries and aquaculture
cooperation and emphasized the need for both countries to further
implement the MoU on Marine and Fisheries Cooperation (2010) to further
tap the high potentials of cooperation in this area and to address illegal,
unregulated and unreported (IUU) fishing, including on the arrangement
for returning fishermen caught or arrested due to (IUU) fishing.
11. The two leaders directed the technical team to expedite their discussion
for the early conclusion on delimitation of the exclusive economic zone and,
without prejudice to the final settlement of maritime boundary
delimitation, encouraged both sides to find a temporary solution to
facilitate cooperation in marine and fisheries affairs.
A separate explanatory note issued by Vietnam’s Foreign Ministry stated that the two
sides “agreed… to closely coordinate in dealing with issues relating to fishermen and
fishing boats that encroach each side’s territorial waters on the basis of humanity and
friendship.”
On December 9, Pham Thu Hang, spokesperson for Vietnam’s Ministry of Foreign
Affairs, stated that Vietnam had contacted Indonesia about the sinking of Vietnameseflagged
boats and appealed to Indonesia to deal with the fishermen “in accordance with
international laws, based on humane spirit and on the relations between Indonesia and
other countries.”
In the past year an unprecedented number of Chinese fishing boats have been operating
in sensitive waters around Natuna Island. This year foreign analysts reported that
Indonesia: Playing With Fire in the South China Sea | The Diplomat Page 2 of 4
http://thediplomat.com/2014/12/indonesia-playing-with-fire-in-the-south-china-sea/ 19/12/2014
Chinese fishing boats have even entered Indonesia’s territorial waters and in some
cases have sailed up estuaries on small islands. This has led some observers to
speculate that Widodo’s policy of shock therapy was a signal to China to rein in such
activity.
On December 10, Hong Lei, the official spokesperson for China’s Ministry of Foreign
Affairs issued a written statement that noted officials from both countries were working
to confirm the details of Indonesia’s seizure of Chinese fishing boats. The statement
also called on Indonesian authorities “to ensure the safety and legal rights of Chinese
crews and address this issue properly.” In the two weeks since President Widodo
announced his policy no government spokesperson has ventured to comment on the
fate of 22 Chinese vessels seized in the Arafura Sea for illegal fishing.
Widodo’s new shock therapy policy also raises questions about the extent to which
domestic populism is driving his policy. According to Farish Noor, writing in Malaysia’s
New Straits Times, “what is troubling about the incident (setting fire to and sinking
three Vietnamese fishing boats)… is that it was a demonstration of power in terms that
seem harsh, over-the-top and contrary to the ASEAN spirit of compromise and
dialogue.”
Farish Noor singled out two issues. First, he argued that the publicity given to the
sinking of the Vietnamese boats “gives the impression that Indonesia is the only victim,
when we know this is not true.” He pointed out that Indonesian fishermen were guilty
of fishing illegally in the waters of neighboring countries as well.
Secondly, Farish Noor noted, “in the past, such boats were captured, the crews arrested
and escorted back to their home waters. Illegal fishing is a problem that the whole of
ASEAN faces, and not Indonesia alone.” Noor then asked rhetorically how would
Indonesians feel if other countries retaliated and burned Indonesian fishing boats?
Farish Noor concluded:
“[T]he moves by Indonesia have gone against the spirit of the association
[ASEAN], and can lead to the view that these are populist moves calculated
to satisfy the electorate. But if every country in ASEAN followed the same
path – pandering to populism, burning the ships of neighbor, etc – then
where will ASEAN head to?”
Indonesian legal expert Frans Hendra Winarta concurred. He accused President
Widodo of being careless by burning and sinking foreign fishing boats because this
risked raising political tensions with fellow members of ASEAN on the eve of the
creation of an ASEAN Economic Community.
Winarta described the sinking of the Vietnamese boasts as a show of force and a
political maneuver to win domestic support. He argued, “Sinking poaching boats
should be the last resort and not a primary one. I am concerned with the way our legal
(standing) is heading: showing force but failing to look far ahead.”
President Widodo shows no sign of rethinking his get-tough policy. On December 15 he
journeyed to Kotabaru in South Kalimantan to mark Nusantara Day, when Indonesia
Indonesia: Playing With Fire in the South China Sea | The Diplomat Page 3 of 4
http://thediplomat.com/2014/12/indonesia-playing-with-fire-in-the-south-china-sea/ 19/12/2014
declared itself an archipelagic state on December 13, 1957. In a speech to mark this
occasion Widodo noted that many leaders from neighboring countries called him prior
to the public burning of the Vietnamese fishing boats. Widodo revealed “(They asked)
‘Pak Jokowi, why use dynamite to sink ships?’ I answered that this was only the first
warning. There would be another message and the second warning… Just wait.”
An editorial in Singapore’s The Straits Times called for President Widodo to enlist the
services of “an eloquent point man to put the scope of Indonesia’s nationalism in the
proper perspective.” The editorial concluded:
“It would be in Jakarta’s interests to ensure diplomatic relations with
countries in the region are safeguarded by not neglecting bilateral
approaches to poaching issues and the detention of foreign boats,
including those of Vietnam, Thailand, and China. Such efforts would also
be in step with Jakarta’s avowed intention of continuing to be actively
involved in ASEAN community-building process, with an eye on the
formation of an ASEAN Economic Community.”
During Indonesia’s recent national elections and on inauguration day President
Widodo has propounded the goal of reviving Indonesia’s past grandeur as a seafaring
nation by making modern-day Indonesia a Global Maritime Axis. This vision appears to
have emboldened Widodo to apply his shock therapy policy to resolve the issue of
illegal poaching. This policy will not succeed because it is a regional problem and
Indonesia lacks the resources to implement it effectively.
President Widodo’s reliance on populism to shore up his new government may play
well at home but it has the potential to raise unnecessary friction in long-standing
bilateral relations with neighboring states and undermine the process of ASEAN
community-building. If Indonesia aspires to play a leading role in Southeast Asian
affairs it must drop unilateral measures and exert leadership to craft a multilateral
regional response.
Indonesia: Playing With Fire in the South China Sea | The Diplomat Page 4 of 4
http://thediplomat.com/2014/12/indonesia-playing-with-fire-in-the-south-china-sea/ 19/12/2014
Image Credit: Indonesian Navy Troops via
Shutterstock.com
Indonesia: Playing With
Fire in the South China
Sea
Indonesia’s new president could
jeopardize bilateral relations and
ASEAN unity with his maritime
“shock therapy.”
On December 5 newly installed President
Joko Widodo ordered Indonesian authorities to set fire to and sink three Vietnamese
boats caught fishing illegally in waters near the Anambas Islands. This incident was
covered by the media and given widespread publicity.
The following day Indonesia officially announced its new policy of “shock therapy” for
illegal poachers. President Widodo told Antara News Agency, “We sunk three of them
on Friday to teach them a lesson, so that they will give up poaching in Indonesian
waters.” According to Tedjo Edhy Purdijatno, Coordinating Minister for Political, Legal
and Security Affairs, Indonesia intended to demonstrate “stern government action” and
would sink five Thai fishing boats seized near West Kalimantan after President Widodo
announced his get-tough policy.
President Widodo offered a justification for his actions in a series of interviews with the
foreign press. Widodo told The Wall Street Journal, “Every day there [are] around
5,400 [foreign] boats in our ocean and our sea. And 90% of them are illegal. So to give
shock therapy to them, of course, we [are] sinking them.” Government authorities
estimated that Indonesia looses more than $20 billion annually due to illegal fishing.
President Widodo also noted that Vietnam was not being singled out. He claimed that
fishing boats sailing under the flag of any other nation engaged in illegal fishing would
be treated on the same basis. Under legislation adopted in 2009, relevant Indonesian
authorities may impound or sink fishing vessels operating in Indonesian water without
proper permits.
In an interview with the Indonesian language service of the Voice of America, President
Widodo was quoted as stating, “I instructed the ministry, the military commander, that
this [illegal fishing] couldn’t continue. I instructed them three or four weeks ago to sink
ships involved in illegal fishing. Sink them! No more! But thank Allah, last Friday, we
started sinking several ships.”
By Carl Thayer
December 18, 2014
Indonesia: Playing With Fire in the South China Sea | The Diplomat Page 1 of 4
http://thediplomat.com/2014/12/indonesia-playing-with-fire-in-the-south-china-sea/ 19/12/2014
President Widodo also told Agence France Presse, “I asked our foreign minister to
explain that this is a purely criminal issue and has nothing to do with neighborly
relations.”
Susi Pudjiastuti, Minister for Maritime Affairs and Fisheries, revealed that a week prior
to the burning of the Vietnamese boats she had alerted the ambassadors from Malaysia,
the Philippines, and Thailand, but apparently not Vietnam, that Indonesia was moving
to impose sanctions and tougher regulations for illegal fishing in its waters.
Five countries are the major source of illegal fishing in Indonesian waters: China,
Malaysia, the Philippines, Thailand and Vietnam. Within five days of President
Widodo’s announcement of his “shock therapy” policy Indonesia seized 155 foreign
fishing vessels.
Minister Susi Pudjiastuti reported that Indonesia’s shock therapy resulted in a dramatic
drop in foreign boats operating around Natuna Island. She also claimed that no harm
was done to Indonesia’s relations with neighboring countries. Still, President Widodo’s
policy of shock therapy raises questions about Indonesia’s treatment of its long-time
political and diplomatic ally, Vietnam.
On June 27, 2013 Indonesia and Vietnam publicly announced that they had raised their
bilateral relations to a strategic partnership. Points 10 and 11 of the Joint Statement
announcing the strategic partnership stated:
10. The two leaders observed the progress in the fisheries and aquaculture
cooperation and emphasized the need for both countries to further
implement the MoU on Marine and Fisheries Cooperation (2010) to further
tap the high potentials of cooperation in this area and to address illegal,
unregulated and unreported (IUU) fishing, including on the arrangement
for returning fishermen caught or arrested due to (IUU) fishing.
11. The two leaders directed the technical team to expedite their discussion
for the early conclusion on delimitation of the exclusive economic zone and,
without prejudice to the final settlement of maritime boundary
delimitation, encouraged both sides to find a temporary solution to
facilitate cooperation in marine and fisheries affairs.
A separate explanatory note issued by Vietnam’s Foreign Ministry stated that the two
sides “agreed… to closely coordinate in dealing with issues relating to fishermen and
fishing boats that encroach each side’s territorial waters on the basis of humanity and
friendship.”
On December 9, Pham Thu Hang, spokesperson for Vietnam’s Ministry of Foreign
Affairs, stated that Vietnam had contacted Indonesia about the sinking of Vietnameseflagged
boats and appealed to Indonesia to deal with the fishermen “in accordance with
international laws, based on humane spirit and on the relations between Indonesia and
other countries.”
In the past year an unprecedented number of Chinese fishing boats have been operating
in sensitive waters around Natuna Island. This year foreign analysts reported that
Indonesia: Playing With Fire in the South China Sea | The Diplomat Page 2 of 4
http://thediplomat.com/2014/12/indonesia-playing-with-fire-in-the-south-china-sea/ 19/12/2014
Chinese fishing boats have even entered Indonesia’s territorial waters and in some
cases have sailed up estuaries on small islands. This has led some observers to
speculate that Widodo’s policy of shock therapy was a signal to China to rein in such
activity.
On December 10, Hong Lei, the official spokesperson for China’s Ministry of Foreign
Affairs issued a written statement that noted officials from both countries were working
to confirm the details of Indonesia’s seizure of Chinese fishing boats. The statement
also called on Indonesian authorities “to ensure the safety and legal rights of Chinese
crews and address this issue properly.” In the two weeks since President Widodo
announced his policy no government spokesperson has ventured to comment on the
fate of 22 Chinese vessels seized in the Arafura Sea for illegal fishing.
Widodo’s new shock therapy policy also raises questions about the extent to which
domestic populism is driving his policy. According to Farish Noor, writing in Malaysia’s
New Straits Times, “what is troubling about the incident (setting fire to and sinking
three Vietnamese fishing boats)… is that it was a demonstration of power in terms that
seem harsh, over-the-top and contrary to the ASEAN spirit of compromise and
dialogue.”
Farish Noor singled out two issues. First, he argued that the publicity given to the
sinking of the Vietnamese boats “gives the impression that Indonesia is the only victim,
when we know this is not true.” He pointed out that Indonesian fishermen were guilty
of fishing illegally in the waters of neighboring countries as well.
Secondly, Farish Noor noted, “in the past, such boats were captured, the crews arrested
and escorted back to their home waters. Illegal fishing is a problem that the whole of
ASEAN faces, and not Indonesia alone.” Noor then asked rhetorically how would
Indonesians feel if other countries retaliated and burned Indonesian fishing boats?
Farish Noor concluded:
“[T]he moves by Indonesia have gone against the spirit of the association
[ASEAN], and can lead to the view that these are populist moves calculated
to satisfy the electorate. But if every country in ASEAN followed the same
path – pandering to populism, burning the ships of neighbor, etc – then
where will ASEAN head to?”
Indonesian legal expert Frans Hendra Winarta concurred. He accused President
Widodo of being careless by burning and sinking foreign fishing boats because this
risked raising political tensions with fellow members of ASEAN on the eve of the
creation of an ASEAN Economic Community.
Winarta described the sinking of the Vietnamese boasts as a show of force and a
political maneuver to win domestic support. He argued, “Sinking poaching boats
should be the last resort and not a primary one. I am concerned with the way our legal
(standing) is heading: showing force but failing to look far ahead.”
President Widodo shows no sign of rethinking his get-tough policy. On December 15 he
journeyed to Kotabaru in South Kalimantan to mark Nusantara Day, when Indonesia
Indonesia: Playing With Fire in the South China Sea | The Diplomat Page 3 of 4
http://thediplomat.com/2014/12/indonesia-playing-with-fire-in-the-south-china-sea/ 19/12/2014
declared itself an archipelagic state on December 13, 1957. In a speech to mark this
occasion Widodo noted that many leaders from neighboring countries called him prior
to the public burning of the Vietnamese fishing boats. Widodo revealed “(They asked)
‘Pak Jokowi, why use dynamite to sink ships?’ I answered that this was only the first
warning. There would be another message and the second warning… Just wait.”
An editorial in Singapore’s The Straits Times called for President Widodo to enlist the
services of “an eloquent point man to put the scope of Indonesia’s nationalism in the
proper perspective.” The editorial concluded:
“It would be in Jakarta’s interests to ensure diplomatic relations with
countries in the region are safeguarded by not neglecting bilateral
approaches to poaching issues and the detention of foreign boats,
including those of Vietnam, Thailand, and China. Such efforts would also
be in step with Jakarta’s avowed intention of continuing to be actively
involved in ASEAN community-building process, with an eye on the
formation of an ASEAN Economic Community.”
During Indonesia’s recent national elections and on inauguration day President
Widodo has propounded the goal of reviving Indonesia’s past grandeur as a seafaring
nation by making modern-day Indonesia a Global Maritime Axis. This vision appears to
have emboldened Widodo to apply his shock therapy policy to resolve the issue of
illegal poaching. This policy will not succeed because it is a regional problem and
Indonesia lacks the resources to implement it effectively.
President Widodo’s reliance on populism to shore up his new government may play
well at home but it has the potential to raise unnecessary friction in long-standing
bilateral relations with neighboring states and undermine the process of ASEAN
community-building. If Indonesia aspires to play a leading role in Southeast Asian
affairs it must drop unilateral measures and exert leadership to craft a multilateral
regional response.
Indonesia: Playing With Fire in the South China Sea | The Diplomat Page 4 of 4
http://thediplomat.com/2014/12/indonesia-playing-with-fire-in-the-south-china-sea/ 19/12/2014

The Real Earthquake Is About to Hit

- Wall Street Daily - http://www.wallstreetdaily.com -
The Real Earthquake Is About to Hit
Posted By Robert Williams On December 31, 2014 @ 6:00 am In Market Analysis,Robert Williams,U.S. | 1 Comment
Don’t try to praise bestselling author, Peter Schiff, for accurately predicting the 2008/2009 crash.
That is, because in his opinion, the financial crisis wasn’t the REAL crash… It was only a tremor before the big one hits.
“Armageddon is inevitable,” says Peter.
So will 2015 be the year when we finally run out of fools willing to lend to us?
Find out in Part I of my exclusive interview with Peter Schiff. Click the video below to listen.
CC

Robert Williams
Founder, Wall Street Daily

Transcript:

Robert Williams: I have bestselling author of Crash Proof and The Real Crash, Peter Schiff, as my guest today. Peter accurately predicted the economic crisis in the United States, but whenever someone credits him with calling the crash, he’s quick to warn that what happened in 2008/2009 wasn’t the real crash; it was only a tremor before the earthquake. Peter, in your latest book, you assert that the United States is already bankrupt and should just declare bankruptcy and reorganize. In other words, take the pain for our debt sins now in a controlled fashion rather than risk a violent crash later. Do you still feel this way?
Peter Schiff: Well, I mean, I absolutely feel the same way, because the only way that we can avoid the inevitable is to keep creating more inflation and continue to blow air and acid bubbles that undermine real economic growth. So, right now the Fed is winding down QE4, and they’re pretending that they’re going to stop raising interest rates, but they actually can’t do that. Because of the enormity of the debt that we have, if interest rates actually went up, we lack the ability to pay. We can’t service the debt at a normal rate of interest. The federal government can’t do that, and so ultimately what’s gonna happen is the Fed is gonna end up doing QE4, and rather than raising rates, they are going to do more stimulus, because as they stopped quantitative easing, the economy is now heading back to recession.
I mean, people are looking in the rearview mirror when they look at these last couple of quarters of GDP growth. Most of the data that comes out about the U.S. economy has been negative, and it’s been very negative for months. And so, I think you’re gonna see a very rapid deceleration now that the Fed is no longer providing all the monetary support and people are starting to brace themselves for higher interest rates. So this whole bubble economy that the Fed inflates starts to implode without the air, and the big drag, of course, is it’s all debt, right? We’re all depending on American consumers to spend, but consumers are broke. They’ve borrowed too much money. The government’s borrowed too much money, and the only way to solve these problems is to allow the debt to be discharged. And people have to stop spending. They have to start saving. Government has to cut spending. The Fed has to let interest rates go up, but none of this is happening. All we’re doing is trying to delay the pain by exacerbating the disease that’s causing the pain.
Robert Williams: Yeah, but do you think our policymakers in this country have the guts to make such an unprecedented decision?
Peter Schiff: Well, it’s not even about guts. It’s just where their priorities lie. They’re concerned with getting reelected, and so they don’t wanna do something that jeopardizes their reelection, and dealing with these problems would do that, because in order to effectively deal with these problems, you have to admit that there is a problem. You have to admit what the source is, and politicians don’t wanna do that, I mean, because they basically have to admit that they’ve been lying to the public for years, that all the things that the government has done to help the economy have actually made it worse and that the tough medicine that’s required now is a result of all the snake oil that the politicians have been spoon-feeding us over the years, which has allowed the problem to get worse. So, their own self-interest is to pretend that the problems don’t exist or to try to get the Fed to cover ‘em up.
And that’s what’s going to happen. You’re seeing this now. The oil market is going down and people are worrying, “Well, is this going to be a problem for the stock market?” It’s not that the oil price going down is the problem. It’s just indicative of the problem. Oil prices were propped up by the Fed. So were home prices. So were stock prices. And if the Fed is not gonna be there anymore, all the prices that were influenced by QE are gonna come down. And since the U.S. recovery was a function of inflated asset prices, as these asset prices deflate, then the recession is going to return. And, of course, what is the government’s response? It’s gonna be more QE, but the real issue is that the recession is part of the healing process. It’s part of what is necessary.
The reason we don’t have real economic growth, the reason that the poor are getting poorer, the divide between the rich and the poor are growing, the middle class is disappearing, people are reporting great dissatisfaction with the economy – look at the voters who voted Republican in the midterms, very upset about the direction of the economy – real incomes are falling. Household net worth is declining. Homeownership has plunged. The number of people living off the government has skyrocketed. Labor-force participation is only rising among older people who are coming out of retirement because they’re too broke to stay retired. Meanwhile, younger people, labor-force participation is plunging as young people can’t find jobs and they just go to grad school.
And student debt is skyrocketing, because so many people can’t find jobs if they’re just going to school, although a lot of the people that are borrowing money using college loans are just going to college so they can get the loans. They don’t even care about the education. They’re enrolling in online courses just so they can get government loans so they can pay their electric bills.
So, the reason that we’re having this real recession under this phony recovery is because the Fed won’t allow the recession to run its natural course, because the recession is kind of like a detox. It’s what’s necessary to make the economy healthy, to allow a restructuring that would facilitate legitimate economic growth. But instead of that happening, we just inflate financial bubbles. And superficially it looks like things are getting better, because the stock market goes up. The real estate market goes up, and there’s some increased spending as a result of all the extra borrowing, but all that is actually hurting the economy. But if we’re gonna allow the recession to run its course, then debt is gonna be defaulted on, because there’s no way around it.
I mean, if the government allowed the recession, banks would fail. People would default on their debts because they couldn’t pay the interest, let alone the principal, but that is more healthy. Allowing that natural, free-market restructuring, that process is healthier and more conducive to a return to legitimate growth than what the Fed is doing. Than trying to prevent that through inflation, through printing money and quantitative easing and zero-percent interest rates. But the Fed is going to continue to fight this battle until it loses the war, and that means the dollar collapses. And I think that’s ultimately where we’re headed.
Robert Williams: Peter, you were an original opponent of the bailout as early as a year before the Bush administration even proposed it. How would you have handled the collapse of the housing market and the ensuing credit crisis?
Peter Schiff: When I wrote my first book. You’ve been reading The Real Crash. When I wrote Crash Proof in 2005/2006, I wrote that book, and I wrote about the coming economic collapse. It wasn’t the one that happened immediately after the book came out. It wasn’t the ’08 financial crisis, even though that was a large part of my book. I wrote in detail about that coming crisis and what was gonna facilitate it, and I wrote a lot about the housing market and what was gonna happen when that bubble burst.
But the first book basically laid out the premise that after the housing bubble burst and it brought about a financial crisis and the greatest recession since the Great Depression and I wrote that we’d have trillion-dollar budget deficits and double-digit unemployment – I wrote about all the things that were gonna happen. I then wrote that in response to that, the government would make the mistake, the Fed would make the mistake of trying to stimulate the economy with cheap money and re-inflate the busted bubbles. So I wrote about the fact that they would do all this quantitative easing. I just didn’t know what they were gonna call it, but I just said this is what they’re going to do. They’re gonna slash interest rates. They’re gonna print a bunch of money, and they’re gonna start buying up debt.
And what I’ve said is that, that action was what was gonna bring about the economic crash, that it wasn’t this disease that I was diagnosing that was the real problem, but the government’s cure that I anticipated would be administered. And that’s happened. The only thing that’s happened that has surprised me from the vantage point that I was at back in ’05 when I was writing that book is the length of time that has transpired between the ’08 financial crisis and the economic collapse that I thought it would usher in, because it hasn’t happened yet. It’s taken longer. The financial crisis and the next crisis, the gap between them is longer than I thought, and I think it’s because I made the mistake of overestimating the intelligence and the ability of the rest of the world to recognize the problem even after the 2008 financial crisis.
It’s amazing the level of financial and monetary ignorance that still permeates the establishment. I mean, the academics and the big money managers and the economists still don’t get it even after having been so spectacularly wrong about the state of the U.S. economy leading up to the financial crisis. They’ve learned nothing. They haven’t questioned any of their premises or any of the dogma that they’ve accepted as fact. Their confidence wasn’t jarred by that. In fact, if anything, they have more confidence than ever in the Federal Reserve and their ability to micromanage the economy and save us, even though the Fed was so wrong and so instrumental in causing the last crisis and so completely ignorant in understanding it. But I think that crisis is coming, and I think what’s gonna start it is going to be as the U.S. economy relapses into recession officially, maybe as soon as next year, and if the Federal Reserve has to call off the rate hikes and replace it with QE4, maybe then the light bulb will start to go off in enough people’s heads to perceive the box that we are in.
And the reason that people have confidence that this is gonna work is because they believe that it’s all temporary, that the low interest rates are temporary, that the Fed can remove the stimulus, shrink its balance sheet and everything is gonna go back to normal. When people realize that this is permanent, that to maintain this artificial economy requires permanent zero-percent interest rates and permanent QE, that the Fed can never back way, that the balance sheet has to keep growing exponentially to prevent a collapse – and when people realize that, that’s what brings on the currency collapse, because if it’s true that the Fed can never raise rates and if the Fed has to keep on printing money forever and there’s no endgame, there’s no exit strategy, then there’s no way to stop the dollar from collapsing.
And that’s what people haven’t figured out. They think that the dollar’s already rising. It has been rising recently based on the anticipation that the Fed is going to raise rates, but they can’t raise rates without precipitating another financial crisis, which would mean that they would have to flash rates. But that also means that as the economy starts to weaken simply on the anticipation of higher rates, that the Fed is forced to cut rates or do another round of QE before they ever get to the rate hike. That’s the catch-22 that people just haven’t figured out.
Robert Williams: Peter, we’ll unveil what that coming crash will look like in Part Two of our discussion. As you say in The Real Crash, even if you don’t think of yourself as an investor, you need to start paying more attention to your wealth, because our economic predicament means there’ll be no easy way to protect your money. For Wall Street Daily, I’m Robert Williams.
[End of Audio]


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2015: Year Of The Collapse?


It’s Not the Koran, It’s Us

It’s Not the Koran, It’s Us

The corporate media chorus willfully ignores that U.S. actions, not Islam, fuel jihadism.
BY Leonard C. Goodman
A UN report suggests that Washington’s latest air campaign against ISIS has led foreign militants to join the movement on 'an unprecedented scale.'
For a brief time after the 9/11 terror attacks, Americans could be heard asking the reasonable question: Why do these men from Middle Eastern countries (back then, mostly Saudis) hate us so much that they would give their own lives to cause us pain? Within a few weeks, the official explanation became: They hate us for our freedom, end of story.
When you follow the money, it is easy to understand why the government avoided any honest discussion of the causes of terrorism. By one estimate, U.S. taxpayers have squandered $10 trillion over four decades to protect the flow of oil on behalf of multinational corporations. The result is an empire of U.S. military bases which have garrisoned the Greater Middle East. In the Persian Gulf alone, the United States has bases in every country save Iran. These bases support repressive, undemocratic regimes, and act as staging grounds to launch wars, interventions and drone strikes. And they generate tremendous profits for defense contractors.
The existence of these bases helps generate radicalism, anti-American sentiment and terrorist attacks. The drone attacks have incited even more hatred for us, which should come as little surprise. The U.S. uses drones to incinerate suspected militants (and anyone else in the vicinity) on secret evidence, but only if they are living in Muslim nations like Pakistan, Yemen, Iraq or Somalia. We don’t fly killer drones over dangerous neighborhoods in Detroit or Chicago, or in Iguala, Mexico, where 43 students were recently massacred by gang members aided by corrupt police.
The fact that our misguided foreign policy creates terrorism is almost never discussed in polite society. There is of course no justification for a terror attack on innocents. But if our leaders truly cared as much about protecting Americans from terror as they do about protecting corporate profits, they would have an honest discussion of what’s prompting the violence.
The truth is that nearly every terror attack or threat to America by an Islamic extremist can be directly linked to “blowback” from our ventures in the Middle East. Osama bin Laden cited the presence of U.S. troops on Saudi holy land as a motivation for the 9/11 attacks. Dzhokhar Tsarnaev said the Boston marathon bombing was “retribution for the U.S. crimes against Muslims in places like Iraq and Afghanistan.” Faisal Shahzad said his attempted bombing in Times Square was “retaliation for U.S. drone attacks” in Pakistan, which he had personally witnessed. The underwear bomber, Umar Farouk Abdulmutallab, said that his attempt to blow up a U.S. airliner bound for Detroit was revenge for U.S. attacks on Muslims. Last month in Chicago, a teenager was arrested attempting to travel to Syria to join ISIS. He explained in a letter to his parents that he was upset that he was obligated to pay taxes that would be used to kill his Muslim brothers and sisters overseas. But when the Chicago Tribune told the story, it left this fact out, instead reporting that the teen had complained about the immorality of Western society.
And long before the Senate released its damning torture report, Al Qaeda and ISIS were using accounts of U.S. torture as a recruiting tool.
The truth about what is radicalizing Muslims to hate the West is rarely discussed in the mainstream press or in political debate. Instead, we are told by corporate-funded terror experts like the Brookings Institution’s William McCants and the Aspen Institute’s Frances Townsend that Islam is the origin of radical ideology. Anti-American jihadis supposedly learn to hate by reading the Koran and going to mosques. So one-sided is the discussion that even Bill Maher, a prominent liberal, has publicly described Islam as the “one religion in the world that kills you when you disagree with them.”
With the launch of our latest multi-billion-dollar war in Iraq and Syria, the United States has now bombed at least 13 countries in the Greater Middle East since 1980. A UN report suggests that Washington’s latest air campaign against ISIS has led foreign militants to join the movement on “an unprecedented scale.” This time, the terror experts haven’t bothered to pretend that we have a coherent plan or any chance of improving the dire situation in those countries. Still, they agree that ISIS militants’ anti-U.S. hatred originates with their Islamic faith and is unrelated to any U.S. actions.
As the novelist Upton Sinclair once observed: It is difficult to get a man to understand something when his job depends on not understanding it.

Unrepentant Imelda still showing arrogance

Unrepentant Imelda still showing arrogance


Imelda Marcos with son, Bongbong, and daughter, Imee.
Imelda Marcos with son, Bongbong, and daughter, Imee.
There is just something in the Marcoses that is revolting and suspicious.
Perhaps having lived and experienced the dictatorial Marcos regime and how the despot and his wife Imelda behaved and functioned during those bedeviled years makes the feeling all the more distinct and graphic to be apprehensive again.
It would not have mattered much if, years after the satisfaction of People Power forcing them down from Malacañang and booting them out of the country, they were again allowed entry, with their despicable patriarch dead this time, to live remorseful and inactive lives, after the humbling experience they have gone through.
But no, unrepentant and active, they soon picked up where they left off and with the warm reception they received from the sycophants and remnants of their old political party in their respective bailiwicks of Ilocos and Leyte, Imelda and children, who have now come of age, started rekindling old ties, resurrecting the name Marcos, restoring their clout and, most importantly, breathe life anew to their political careers.
And for one evil reason – to reclaim Malacañang and retrieve those ultra-expensive jewelries taken away from Imelda before it gets auctioned in the market or slowly and gradually disappearing, for one reason or another.
The jewelry collection that are stored in the vaults of the Bangko Sentral ng Pilipinas is said to be divided into three caches according to where they were found: The Malacañang collection of around 300 pieces that was left behind after the Marcoses fled the Palace; the Hawaii collection consisting of 400 pieces, which was seized by the US Bureau of Customs upon the Marcoses’ arrival in Hawaii; and the Roumeliotes collection of 60 major pieces that Imelda’s Greek accomplice, Demetriou Roumeliotes, tried to spirit out of the country a few weeks after the Marcoses’ ouster.
It was not just a dream that had been recurring in Imelda’s vexing sleep while living in exile.
It has become her obsession that if she can’t make it to the palace herself, that at least her son would aspire for the presidential seat and do something about it, among other things she wants done, if ever.
So now that she is back strutting like an aging female peacock on her 85th birthday, she has finally mustered the strength and the gall to express her wish, if not her phantasm, sooner than later.
“I see a Marcos running for the presidency. I see a Marcos as President. That is destiny,” she told the media in a television interview.
Imelda was of course referring to her son, Sen. Ferdinand “Bongbong” Marcos, as a presidential candidate in the 2016 elections.
It boggles my mind how this shameless woman continues to have the nerve and the arrogance in promoting the Marcos name, a personification of what ultimate corruption is, even as her son is one of those allegedly implicated in the pork barrel scam?
But, it is even more dumbfounding that there are many more Filipinos who continue to consider the Marcoses their idols.
“I still have a vision and hope to bring more help to the Filipino people,” Imelda declared.
Baloney!
We need anyone of them, either mother Imelda (Ilocos congresswoman), daughter Imee (Ilocos governor) and son Bongbong (senator of the realm) to lead this country, like we need a hole in our heads.
We never learn.)

The Marcos greed continues

The Marcos greed continues

Sen. Ferdinand "Bongbong" Marcos Jr.
Sen. Ferdinand “Bongbong” Marcos Jr.
I have written about the dictator Marcos – his unscrupulousness, his wickedness, and his being the precursor of what is evil among our politicians cum public servants today.
Now I am writing about Sen. Ferdinand “Bongbong” Marcos Jr’s greed – his involvement in the multi-billion PDAF scam and looking at both of them I can’t help but entertain thoughts that, indeed, ‘The apple doesn’t fall far from the tree.” Truly, he is a chip off the old block.
I am sure all Filipinos were hoping that with their return and reentry into politics that the Marcoses would have learned their lesson for being exiled, have made amends of their mistakes, and felt the need to serve the people in a selfless and incorruptible manner this time around.
Alas, our collective hopes (collective stupidity?) for them to be magnanimous has come to naught as once again the people have become victims of the son’s greed.
Note that Bongbong Marcos was earlier reported by the COA to have endorsed in 2012 P100 million of his pork-barrel allocation to Napoles’ dummy NGOs—Ginintuang Alay sa Magsasaka Foundation Inc. (P5 million), Agricultura para sa Magbubukid Foundation Inc. (P25 million), Kaupdanan para sa Mangunguma Foundation Inc. (P25 million) and Agri and Economic Program for Farmers Foundation Inc. (P45 million) through the National Livelihood Development Corp.
Although Marcos has been denying involvement in the PDAF scam, claiming that his signatures have been forged in all of the transactions where his pork barrels were said to have been channeled into, a recent report coming out in the national paper, however, confirms otherwise.
It says that documents have been obtained identifying a certain Catherine Mae “Maya” Santos as the conduit between Marcos and detained businesswoman Janet Lim-Napoles in routing millions of pesos in government funds to bogus foundations and ghost livelihood projects.
Santos originally worked as a Senate staff officer of Sen. Loren Legarda and was able to get appointed as an officer of the National Anti-Poverty Commission and the Department of Agriculture during the second term of former President Gloria Macapagal-Arroyo.
Santos has since moved to the office of Marcos while continuing to provide support to Legarda under the Aquino administration. Legarda admitted to knowing Santos but claimed that “she is not my staff and is never authorized to handle any PDAF.”
In 2011 after Santos moved to the Senate office of Marcos as his officer in charge, Masaganang Ani para sa Magsasaka Foundation Inc. (Mamfi) received P24.25 million for livelihood projects in Davao del Sur and Davao Oriental supposedly endorsed by the senator.
The transaction was submitted by Mamfi, one of the nongovernment organizations (NGOs) controlled by Napoles, in a report to the Securities and Exchange Commission (SEC) and the Bureau of Internal Revenue (BIR) that year, according to an affidavit by Marina Sula, a former employee of the businesswoman, submitted to the National Bureau of Investigation.
Sula and another whistle-blower, Merlina Suñas, revealed in affidavits submitted to the NBI that Santos was Napoles’ go-between in the offices of Marcos and Sen. Loren Legarda.
The reason why I am stating the salient points of the report here is to call attention on the people that never should we trust a Marcos again to lead this country.
Note that the namesake son of the late dictator Ferdinand Marcos has ambitions to run for the presidency of this country sometime in the future.
Marcos Sr, during his presidency, screwed us real good holding the nation hostage with his military rule while plundering and leaving the nation rat poor.
Marcos Jr, even as a senator, is starting to defraud the nation with the poor being disadvantaged the most and showing no compunction.
We need the son to be president like we need a hole in our heads.