The Myth Of Moderate Nuclear War

The Myth Of Moderate Nuclear War

Authored by Brian Cloughley via The Strategic Culture Foundation,

There are many influential supporters of nuclear war, and some of these contend that the use of ‘low-yield’ and/or short-range weapons is practicable without the possibility of escalation to all-out Armageddon.

In a way their argument is comparable to that of the band of starry-eyed optimists who thought, apparently seriously, that there could be such a beast as a ‘moderate rebel’.

In October 2013 the Washington Post reported that “The CIA is expanding a clandestine effort to train opposition fighters in Syria amid concern that moderate, US-backed militias are rapidly losing ground in the country’s civil war,” and the US Congress gave approval to then President Barack Obama’s plan for training and arming moderate Syrian rebels to fight against Islamic State extremists. The belief that there could be any grouping of insurgents that could be described as “moderate rebels” is bizarre and it would be fascinating to know how Washington’s planners classify such people. It obviously didn’t dawn on them that any person who uses weapons illegally in a rebellion could not be defined as being moderate. And how moderate is moderate? Perhaps a moderate rebel could be equipped with US weapons that kill only extremists? Or are they allowed to kill only five children a month? The entire notion was absurd, and predictably the scheme collapsed, after expenditure of vast amounts of US taxpayers’ money.

And even vaster amounts of money are being spent on developing and producing what might be classed as moderate nuclear weapons, in that they don’t have the zillion-bang punch of most of its existing 4,000 plus warheads. It is apparently widely believed in Washington that if a nuclear weapon is (comparatively) small, then it’s less dangerous than a big nuclear weapon.

In January 2019 the Guardian reported that “the Trump administration has argued the development of a low-yield weapon would make nuclear war less likely, by giving the US a more flexible deterrent. It would counter any enemy (particularly Russian) perception that the US would balk at using its own fearsome arsenal in response to a limited nuclear attack because its missiles were all in the hundreds of kilotons range and ‘too big to use’, because they would cause untold civilian casualties.”

In fact, the nuclear war envisaged in that scenario would be a global catastrophe — as would all nuclear wars, because there’s no way, no means whatever, of limiting escalation. Once a nuclear weapon has exploded and killed people, the nuclear-armed nation to which these people belonged is going to take massive action. There is no alternative, because no government is just going to sit there and try to start talking with an enemy that has taken the ultimate leap in warfare.

It is widely imagined — by many nuclear planners in the sub-continent, for example — that use of a tactical, a battlefield-deployed, nuclear weapon will in some fashion persuade the opponent (India or Pakistan) that there is no need to employ higher-capability weapons, or, in other words, longer range missiles delivering massive warheads. These people think that the other side will evaluate the situation calmly and dispassionately and come to the conclusion that at most it should itself reply with a similar weapon. But such a scenario supposes that there is good intelligence about the effects of the weapon that has exploded, most probably within the opponent’s sovereign territory. This is verging on the impossible.

War is confusing in the extreme, and tactical planning can be extremely complex. But there is no precedent for nuclear war, and nobody — nobody — knows for certain what reactions will be to such a situation in or near any nation. The US 2018 Nuclear Posture Review stated that low-yield weapons “help ensure that potential adversaries perceive no possible advantage in limited nuclear escalation, making nuclear employment less likely”. But do the possible opponents of the United States agree with that? How could they do so?

The reaction by any nuclear-armed state to what is confirmed as a nuclear attack will have to be swift. It cannot be guaranteed, for example, that the first attack will not represent a series. It will, by definition, be decisive, because the world will then be a tiny step from doomsday. The US nuclear review is optimistic that “flexibility” will by some means limit a nuclear exchange, or even persuade the nuked-nation that there should be no riposte, which is an intriguing hypothesis.

As pointed out by Lawfare, “the review calls for modification to ‘a small number of existing submarine-launched ballistic missile (SLBM) warheads’ to provide a low-yield option.

It also calls for further exploration of low-yield options, arguing that expanding these options will ‘help ensure that potential adversaries perceive no possible advantage in limited nuclear escalation, making nuclear employment less likely.’ This is intended to address the argument that adversaries might think the United States, out of concern for collateral damage, would hesitate to employ a high-yield nuclear weapon in response to a ‘lower level’ conflict, in which an adversary used a low-yield nuclear device. The review argues that expanding low-yield options is ‘important for the preservation of credible deterrence,’ especially when it comes to smaller-scale regional conflicts.”

“Credible deterrence” is a favourite catch-phrase of the believers in limited nuclear war, but its credibility is suspect. Former US defence secretary William Perry said last year that he wasn’t so much worried about the vast number of warheads in the world as he was by open proposals that these weapons are “usable”. It’s right back to the Cold War and he emphasises that “The belief that there might be tactical advantage using nuclear weapons – which I haven’t heard being openly discussed in the United States or in Russia for a good many years – is happening now in those countries which I think is extremely distressing.” But the perturbing thing is that while it is certainly being discussed in Moscow, it’s verging on doctrine in Washington.

In late February US Defence Secretary Esper was reported as having taken part in a “classified military drill in which Russia and the United States traded nuclear strikes.” The Pentagon stated that “The scenario included a European contingency where you’re conducting a war with Russia and Russia decides to use a low-yield, limited nuclear weapon against a site on NATO territory.” The US response was to fire back with what was called a “limited response.”

First of all, the notion that Russia would take the first step to nuclear war is completely baseless, and there is no evidence that this could ever be contemplated. But ever if it were to be so, it cannot be imagined for an instant that Washington would indulge in moderate nuclear warfare in riposte.

These self-justifying wargames are dangerous. And they bring Armageddon ever closer.


Tyler Durden

Wed, 03/04/2020 – 00:05

via ZeroHedge News https://ift.tt/2wuHFVz Tyler Durden

China’s Rare Earth Monopoly Is Diminishing

China’s Rare Earth Monopoly Is Diminishing

Some while ago, rare earth metals important in the production of microchips, electronics and electric motors were almost exclusively sourced in China. However, as Statista’s Katharina Buchholz notes, in recent years, several nations have picked up production again while new players entered the market, diversifying it at least to some degree.

Infographic: China's Rare Earth Monopoly is Diminishing | Statista

You will find more infographics at Statista

China was still responsible for almost two thirds of global production in 2019, according to the U.S. Geological Survey. But as many countries are wary of depending on China, especially when it comes to technology products, countries with rare earth deposits are likely to exploit them further. The U.S., however, is still shipping its rare earths to China for processing, but a first processing plant on American soil is in the planning stages with funding help from the U.S. army.

China also has the largest know deposits of rare earths, but Brazil, Vietnam and Russia also have a lot of (largely) untapped potential in the sector. The United States and Australia ramped up production of rare earths after 2010 and most recently, Myanmar has been mining considerable amount. As seen in the chart above, the U.S. had in the past mined and produced rare earths for military uses and re-entered the market as rare earths were getting more important as a part of the implementation of crucial technologies.


Tyler Durden

Tue, 03/03/2020 – 23:45

via ZeroHedge News https://ift.tt/3cz7STR Tyler Durden

What Is An SDR And Will It Be The Next World Reserve Currency?

What Is An SDR And Will It Be The Next World Reserve Currency?

Submitted by Jan Nieuwenhuijs for Voima Insight.

There’s no way IMF’s Special Drawing Right, a poorly designed synthetic reserve asset, will replace the U.S. dollar as the world reserve currency.

After several years of monetary madness—artificially lowering interest rates to the extent all asset prices are distorted—the world is slowly waking up to the fact that printing money by central banks is a one-way street. Once central banks enter this trajectory (and they have), they can’t reverse. Markets have become addicted to cheap money, and central banks feel compelled to print more when the economy, or stock market, weakens. The Federal Reserve, the issuer of the U.S. dollar, is trapped too. Possibly, a paradigm shift in the international monetary system will transpire during the coming economic downturn, and the dollar will lose its status as the world reserve currency.

Some analysts proclaim the next world reserve currency is standing ready to replace the dollar. This would be the Special Drawing Right (SDR), issued by the International Monetary Fund (IMF). According to my analysis, though, the SDR isn’t capable of being the world reserve currency. It will never be much more than a unit of account.

If you ask a random financial expert what an SDR is, he or she is likely to say, “It’s a currency issued by the IMF, comprising a basket of the world’s most important currencies.” Based on this definition, some analyst forecast the SDR will replace the dollar. But, from examining the anatomy of the SDR, it appears it’s not a currency and there is no free market to exchange them. Which is problematic.

Introduction

The SDR is a “supplementary international reserve asset” that was created by the International Monetary Fund in 1969. At first, it was defined as 0.888671 grams of gold. By denominating it in a fixed weight of gold, some thought SDRs were backed by gold. Alas, SDRs were created out of thin air and then given a gold exchange rate, but they could not be redeemed for gold (page 212).

In 1974, after the collapse of Bretton Woods, the SDR’s value was redefined based on a basket of currencies. But, again, the SDR was not backed by these currencies. Rather, the SDR’s valuation was, and is, based on the weights given to the currencies in the basket.

On the IMF website, we can read an illuminating definition of the SDR:

The SDR is neither a currency nor a claim on the IMF. Rather, it is a potential claim on the freely usable currencies of IMF members.

The SDR is not a currency, because it can’t be used by individuals; it’s not a medium of exchange. The word “potential” in the definition of the SDR is crucial. It reveals that any monetary authority holding SDRs, might be able to convert them into “freely usable currencies of IMF members”, or it might not. How come? In the IMF Financial Operations 2018 we can read:

there is no market for the SDR itself in which excess supply or demand pressure can be eliminated by adjustments in the price, or value, of the SDR.

The SDR is a “potential claim” on freely usable currencies, because there is no market for the SDR, and it’s not a liability of the IMF. The result is that possibly SDRs can be exchanged for actual currencies (below is explained how), but there is no guarantee.

How the SDR can function as the backbone of the international monetary system (IMS) if there is not a (highly liquid) market for it? The answer is, it can’t.

From this short introduction, we see that the SDR is essentially a unit of account. In the remainder of this article, we will delve into the anatomy of the SDR, how it’s traded and the likelihood of replacing the U.S. dollar.

What Is an SDR?

The SDR is a supplementary international reserve asset. SDRs can’t be held by private entities or individuals, but only by IMF member countries, and, currently, fifteen organizations approved by the IMF as “prescribed holders” (page 91). Let’s start with a brief introduction of the IMF’s governing structure, as a backdrop to understand how SDRs are created and used. We’ll start with the IMF’s General Department.

Courtesy IMF Financial Operations 2018.

The IMF’s resources are mainly held in its General Resources Account, which is managed by the General Department. Each IMF member country is required to transfer financial resources to the IMF based on its “quota”, set according to a member’s relative economic position in the world economy. The General Resources Account is a pool of currencies and reserve assets, mostly built from members’ paid capital subscriptions derived from quotas (page 13).

Courtesy IMF Financial Operations 2018.

For lending operations (for which the Fund is mostly known for), the IMF does offer SDRs as an alternative to “usable currencies” from its General Resources Account, but in practice, the majority of loans and repayments are made in usable currencies (page 92). (“Freely usable currencies”, according to the IMF are currencies “widely used to make payments for international transactions, and [are] widely traded in the principal exchange markets.”)

Quotas are also tied to an IMF member’s voting power, and they determine the share of SDR allocations. When SDR’s are created by the IMF, out of thin air, they are allocated among all 189 IMF members according to the quotas. The IMF can’t allocate SDRs to itself or to prescribed holders (page 89).

 

Once newly created SDRs are collected, two entries arise on an IMF member’s balance sheet: “SDR holdings” on the asset side, and “SDR allocations” on the liability side.

Courtesy Users’ Guide To The SDR: A Manual of Transactions and Operations in SDRs.

Members receive the SDR interest rate on SDR holdings and pay the SDR interest rate on SDR allocations. SDR interest rate transfer system is a zero-sum game. Those having less SDR holdings than allocations pay interest to those with more SDR holdings than allocations. The IMF’s SDR Department, the center of the SDR apparatus, manages all interest rate flows.

So when, say, Norway exchanges SDR holdings for currency via the IMF’s SDR Department, Norway’s SDR holdings will be lower relative to its SDR allocations. Therefore, Norway will pay interest. Norway’s transaction will cause others, in the SDR universe, to have more SDR holdings than allocations who then will receive the interest paid by Norway.

The SDR department receives interest on all outstanding SDR holdings and charges interest on all SDR allocations.

How Is the SDR Value and SDR Interest Rate Determined?

The exchange rate of the SDR, set daily, is based on the weights of the currencies comprising the SDR basket. Today, the basket contains five currencies: the U.S. dollar, Chinese renminbi, the Japanese yen, the euro, and the Great British Pound. In the second column in the table below, you can see what weight, in percentage, is assigned to each currency (“Currency weight”).

The SDR is revised every five years. The most recent revision of the SDR basket was in 2015, when the Chinese renminbi was added. After the revision, on October 1, 2016, the new currency weights were set, and the exchange rates between the currencies that day prompted a “Currency amount” for each of them (page 100). The latter is displayed in the third column in the table above and can be seen as a multiplying factor for the SDR’s daily valuation.

Because the exchange rates between the currencies in the SDR basket continuously fluctuate, prevailing rates are used for the SDR’s daily valuation as well. In the fourth column, you can see the prevailing “Exchange rate,” which is multiplied by the currency amount to arrive at a “U.S. dollar equivalent” (in the fifth column). All the U.S. dollar equivalents added up instigate the price of the SDR denominated in U.S. dollars. On February 14, 2020, the value of the SDR was expressed as $1.36751. With the U.S. dollar exchange rate, the SDR’s exchange rate with other currencies can be computed.

So, the SDR is neither a claim on these currencies nor do they fully or fractionally back the SDR. Instead, the currency weights, currency amounts, and exchange rates produce a daily SDR value, which is used when SDRs are exchanged for currency.

The SDR interest rate is set weekly and is based on the 3-months interest rate benchmarks of the five currencies and their respective weights in the SDR basket (page 89). The interest rate benchmarks are:

—US dollar: three-month US Treasury bills

—Euro: three-month rate for euro area central government bonds with a rating of AA and above published by the European Central Bank

—Chinese renminbi: three-month benchmark yield for China Treasury bonds as published by the China Central Depository and Clearing Co. Ltd.

—Japanese yen: three-month Japanese Treasury discount bills

—Pound sterling: three-month UK Treasury bills.

Remarkably, the floor for the SDR interest rate is 0.05%.

How Are SDRs Traded?

Because “there is no market for the SDR itself in which excess supply or demand pressure can be eliminated by adjustments in the price”, SDRs are primarily traded via Voluntary Trading Arrangements (VTAs). Meaning, supply and demand are connected through a managed market at the SDR Department. In the IMF Financial Operations 2018, we read:

The role of the IMF [SDR Department] in transactions by agreement [VTAs] is to act as an intermediary, matching participants in this managed market in a manner that meets, to the greatest extent possible, the requirements and preferences of buyers and sellers of SDRs.

In other words, a country wishing to sell SDRs for usable currency will notify the SDR Department to match the seller with a buyer. Trades are settled through the SDR Department. It’s not prohibited for countries to exchange SDRs for currency, but, again, there’s no market. The SDR is used almost exclusively in transactions with the IMF; for operations between IMF members and the General Resources Account (page 86).

Next to VTAs through the SDR Department, there’s one more way for the IMF to make its members exchange SDRs: the designation mechanism. From the IMF Financial Operations 2018:

In the event there is insufficient capacity under the voluntary trading arrangements [VTAs], the IMF can activate the designation mechanism: IMF members with a strong balance of payments and reserves position may be designated by the IMF to purchase SDRs from members with weak external positions.

In case of emergency, the IMF will designate a member, with a strong balance of payments, to exchange currency for SDRs (page 105). Although, I doubt the designation mechanism has ever been activated, or ever will (page 86 and 93). The IMF states, “the functioning of the SDR Department … is based on the principle of mutuality and intergovernmental cooperation.” As far as I know, there is no judicial framework that can make the IMF command sovereign nations how to disperse their international reserves. In case the proverbial “shit hits the fan”, I’m doubtful members will buy SDRs according to the whims of the IMF.

With respect to IMF loans, things are different. These are based on conditionality, in which case the Fund can exercise significant power over borrowing nations.

Other Deficiencies

According to my analysis, the SDR will never be the main international reserve asset. Not in its current form, nor in any future form. One of its deficiencies that I haven’t addressed extensively is that the essence of the SDR has changed regularly since 1969. First, it was a book entry defined in gold weight. In 1974 its value was redefined as a basket of sixteen currencies. And the SDR interest rate “set semiannually at about half the level of a combined market interest rate that was defined as a weighted average of interest rates on short-term market instruments in France, Germany, Japan, the United Kingdom, and the United States [page 87].” In 1981 the basket was altered to five currencies, and the SDR interest rate was made equal to market rates. In 2000, the basket was brought down to four currencies, and new selection criteria were adopted. In 2015, the last significant change was made when they added the Chinese renminbi. But who knows what an SDR will be in the future?

Now, why would any monetary authority hold most of its resources in an asset which essence can be modified (and its units created boundlessly)? And then to think there is no actual market for them to be exchanged, and Voluntary Trading Arrangements and the designation mechanism presage anything but liquidity.

What Have SDR Scholars Written?

Another core deficiency of the SDR was addressed by Eswar S. Prasad, former Chief of the Financial Studies Division at the IMF’s Research Department, in The Dollar Trap (page 280):

In principle, SDRs can be exchanged for “freely usable” currencies but cannot be used directly in private transactions. Thus, increasing the stock of SDRs does not increase the total liquidity of the global monetary system.

Because SDRs are not backed by anything and are not a medium of exchange, creating SDRs doesn’t create more “total liquidity of the global monetary system.”

Now, what is the true value of these SDRs as they’re not backed by currency and there is no market to exchange them? The reality is that the SDR’s true value “derives from the commitments of members to exchange SDRs for freely usable currencies [page 86].” Consequently, when members aren’t committed to exchange SDRs, its true value drops to zero. Surely, a fictional exchange rate will continue to be published—to serve as a unit of account—but its true exchange rate would be zero.

The economist Fred Hirsch, senior adviser to the IMF (1966-1972), published an essay in 1974 titled “An SDR Standard: Impetus, Elements, and Impediments.” Hirsch wrote that it was “generally recognized in both academic and official circles, [that] SDRs in their present form are inadequate … [as] a secure and controlled base for world monetary reserves.” To continue, “a more comprehensive SDR system would represent a substantial step toward a world central bank.”

I agree. Maybe the SDR can succeed if its essence is changed once again, the world would fully financially integrate, and all countries would be subordinate to one world central bank that could control all of its members’ monetary policy. But that’s not going to happen. First, it makes no sense. Second, the current trend is financial disintegration. Look at Brexit and the trade war between China and the U.S. Are we really to believe that the world will submit under a new global central bank that will issue the “SDR 11.3.4”? And all nations will surrender their monetary sovereignty? I don’t think so.

Additionally, central banks are buying gold or repatriating gold. The motivation to buy gold is to diversify away from what can be printed boundlessly. Repatriating gold was called “economic nationalism” by the Executive Director of the Austrian central bank in 2015, Peter Mooslechner. Which is a fitting description for the present trend.

Hirsch also stated integration wasn’t feasible, nor, in his view, desirable:

At present [1974], however, the integrationist objective is not generally regarded as feasible on a global basis (and some, including myself, would not regard it as desirable).

Why China Is Promoting SDRs

Some of you might think, “so what was all the fuss about when the renminbi was added to the SDR? Financial blogs were speaking of a new paradigm! What about the Governor of the People’s Bank of China (PBoC), Zhou Xiaochuan’s paper from March 23, 2009—Reform the international monetary system—in which the SDR was discussed?”

Yes, Zhou wrote the IMS should be less centered around the U.S. dollar, and more towards, as an example, the SDR. From Zhou about the SDR:

A super-sovereign reserve currency managed by a global institution could be used to both create and control the global liquidity.

Special consideration should be given to giving the SDR a greater role.

This will require political cooperation among member countries.

Zhou’s remarks boil down to an SDR overhaul and a world central bank, as mentioned by Hirsch. Not feasible.

In my view, Zhou mentioned the SDR as a decoy. There are two reasons why the Chinese like to talk about SDRs.

One, the SDR is about symbolism. China’s goals are to internationalize the renminbi as a trade currency, and have it globally accepted as a reserve currency. In the end, to leverage the Chinese economy, equal to the extent economies of international currency issuers such as the U.S. and the eurozone have advantaged. Adoption into the SDR gave the renminbi a seal of approval as world reserve currency. This is one reason why China is cheering about the SDR.

Two, the Chinese want to diminish the role of the U.S. dollar in every way possible. Hence, China currently publishes its international reserves denominated in U.S. dollars and SDRs. For the Chinese, the more attention is diverted from U.S. units of account, the better.

China’s international reserves in 2019, denominated in U.S. dollars and SDRs.

In 2016, the weight of the Chinese golden Panda coin changed from 1 troy ounce to 30 grams. Effectively, the coin’s weight went from 31.103 grams to 30 grams. This change was symbolic as well as strategic: to use as few U.S. units of account as possible. Similar to denominate value as much as possible, “not in U.S. dollars.” The Panda weight adjustment also streamlined it to be traded on the Shanghai Gold Exchange, where the gold price is quoted in yuan per fine gram (not troy ounce).

Next to symbolism, China also develops concrete methods to gain international market share at U.S.’s expense. By, for example, launching international commodity trading in renminbi such as the Shanghai Gold benchmark and Shanghai Oil.

Consider that since Zhou’s paper was published, in March 23, 2009, the PBoC added 520 million SDRs to its international reserves and 1,348 tonnes of gold. Measured in their own units of account (irrespective of the change in the gold price), China’s SDR reserves went up by 95%, and its gold reserves by 225%.

But because a unit of gold is more expensive, and its price has gone up since 2009, the amount of gold added by the PBoC since then is worth 50 billion SDRs at today’s prices, which is 9,491% more than the 50 million in SDR reserves increment.

Did Zhou mean to shift the IMS towards the SDR? Did he saw value in the SDR? If so, why didn’t he put his money where his mouth is?

Or, was Zhou’s message simply to ditch the dollar, but he preferred not to speak about gold, as this would put steroids on the gold price? An escalating gold price would make the PBoC able to buy less gold in the process of diversifying its foreign exchange reserves. I think this is why Zhou mentioned SDRs.

It’s always best to look at what central bankers do, not what they say. Across the globe many central banks have been shifting towards gold since 2009, not SDRs.

Conclusion

From all the deficiencies concerning the SDR—it’s not a currency, there is no market, no liquidity, it’s essence can be changed, etc.—I think the SDR will continue to play a marginal role in international economics. At most its use as a unit of account will be expanded.

In the near future I expect gold’s role in the IMS to increase. When economic growth declines, countries will (likely) devalue their currencies, and when “economic nationalism” increases, reserve asset managers will prefer to hold the only universally accepted financial assets that doesn’t have counterparty risk and can’t be printed: gold.

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Tyler Durden

Tue, 03/03/2020 – 23:25

via ZeroHedge News https://ift.tt/3cDKKn8 Tyler Durden

Bernie-Supporting Denver Councilwoman Encourages Coronavirus Patients To Attend MAGA Rallies

Bernie-Supporting Denver Councilwoman Encourages Coronavirus Patients To Attend MAGA Rallies

A Denver councilwoman has come under fire for praising a now-deleted tweet from a user who said they would attend “every MAGA rally I can” if they are infected with the new coronavirus.

Candi CdeBaca (D) tweeted “#solidarity Yaaaas!!” in support of the message:

And surprise, she’s a supporter of Bernie Sanders – whose staffers were caught on hidden camera espousing the virtues of throwing rich people in literal gulags while they redistribute their wealth.

In response to the tweet, CdeBaca’s office said: “Councilwoman CdeBaca made a sarcastic tweet on Twitter to call attention to the Trump administration’s downplaying of the Coronavirus outbreak as a “hoax” no more dangerous than the common flu. Rather than conservative outlets making a four-day-old Tweet their focus on Super Tuesday, they should focus their energy on demanding a competent Federal response to this public health crisis instead.”

The Colorado Republican Party, meanwhile, said in response: “Councilwoman CdeBaca praising a social media post calling for Trump supporters to be infected with the coronavirus is simply disgusting. There can be no room in our politics for wishing harm on Americans who have different political beliefs. Democrats in Colorado and across the country need to condemn this evil statement,”  “In light of these comments, the Colorado Republican Party is calling on Councilwoman CdeBaca to resign immediately.”


Tyler Durden

Tue, 03/03/2020 – 23:05

via ZeroHedge News https://ift.tt/3cqBa6N Tyler Durden

The Syria Deception

The Syria Deception

Submitted by the Swiss Propaganda Research organization

Understanding the geopolitical and psychological war against Syria.

What is the Syria war about?

Contrary to the depiction in Western media, the Syria war is not a civil war. This is because the initiators, financiers and a large part of the anti-government fighters come from abroad.

Nor is the Syria war a religious war, for Syria was and still is one of the most secular countries in the region, and the Syrian army – like its direct opponents – is itself mainly composed of Sunnis.

But the Syria war is also not a pipeline war, as some critics suspected, because the allegedly competing gas pipeline projects never existed to begin with, as even the Syrian president confirmed.

Instead, the Syria war is a war of conquest and regime change, which developed into a geopolitical proxy war between NATO states on one side – especially the US, Great Britain and France – and Russia, Iran and China on the other side.

In fact, already since the 1940s the US has repeatedly attempted to install a pro-Western government in Syria, such as in 1949, 1956, 1957, after 1980 and after 2003, but without success so far. This makes Syria – since the fall of Libya – the last Mediterranean country independent of NATO.

Thus, in the course of the “Arab Spring” of 2011, NATO and its allies, especially Israel and the Gulf States, decided to try again. To this end, politically and economically motivated protests in Syria were used and were quickly escalated into an armed conflict.

NATO’s original strategy of 2011 was based on the Afghanistan war of the 1980s and aimed at conquering Syria mainly through positively portrayed Islamist militias (so-called “rebels”). This did not succeed, however, because the militias lacked an air force and anti-aircraft missiles.

Hence from 2013 onwards, various poison gas attacks were staged in order to be able to deploy the NATO air force as part of a “humanitarian intervention” similar to the earlier wars against Libya and Yugoslavia. But this did not succeed either, mainly because Russia and China blocked a UN mandate.

As of 2014, therefore, additional but negatively portrayed Islamist militias (“terrorists”) were covertly established in Syria and Iraq via NATO partners Turkey and Jordan, secretly supplied with weapons and vehicles and indirectly financed by oil exports via the Turkish Ceyhan terminal.

ISIS: Supply and export routes through NATO partners Turkey and Jordan (ISW / Atlantic, 2015)

Media-effective atrocity propaganda and mysterious “terrorist attacks” in Europe and the US then offered the opportunity to intervene in Syria using the NATO air force even without a UN mandate – ostensibly to fight the “terrorists”, but in reality still to conquer Syria and topple its government.

This plan failed again, however, as Russia also used the presence of the “terrorists” in autumn 2015 as a justification for direct military intervention and was now able to attack both the “terrorists” and parts of NATO’s “rebels” while simultaneously securing the Syrian airspace to a large extent.

By the end of 2016, the Syrian army thus succeeded in recapturing the city of Aleppo.

From 2016 onwards, NATO therefore switched back to positively portrayed but now Kurdish-led militias  (the SDF) in order to still have unassailable ground forces available and to conquer the Syrian territory held by the previously established “terrorists” before Syria and Russia could do so themselves.

This led to a kind of “race” to conquer cities such as Raqqa and Deir ez-Zor in 2017 and to a temporary division of Syria along the Euphrates river into a (largely) Syrian-controlled West and a Kurdish (or rather American) controlled East (see map above).

This move, however, brought NATO into conflict with its key member Turkey, because Turkey did not accept a Kurdish-controlled territory on its southern border. As a result, the NATO alliance became increasingly divided from 2018 onwards.

Turkey now fought the Kurds in northern Syria and at the same time supported the remaining Islamists in the north-western province of Idlib against the Syrian army, while the Americans eventually withdrew to the eastern Syrian oil fields in order to retain a political bargaining chip.

While Turkey supported Islamists in northern Syria, Israel more or less covertly supplied Islamists in southern Syria and at the same time fought Iranian and Lebanese (Hezbollah) units with air strikes, but ultimately without success: the militias in southern Syria had to surrender in 2018.

Ultimately, some NATO members tried to use a confrontation between the Turkish and Syrian armies in the province of Idlib as a last option to escalate the war. In addition to the situation in Idlib, the issues of the occupied territories in the north and east of Syria remain to be resolved, too.

Russia, for its part, has tried to draw Turkey out of the NATO alliance and onto its own side as far as possible. Modern Turkey, however, is pursuing a rather far-reaching geopolitical strategy of its own, which is also increasingly clashing with Russian interests in the Middle East and Central Asia.

As part of this geopolitical strategy, Turkey in 2015 and 2020 even used the so-called »weapon of mass migration«, which may serve to destabilize both Syria (so-called strategic depopulation) and Europe, as well as to extort financial, political or military support from the European Union.

What role did the Western media play in this war?

The task of NATO-compliant media was to portray the war against Syria as a “civil war, the Islamist “rebels” positively, the Islamist “terrorists” and the Syrian government negatively, the alleged “poison gas attacks” credibly and the NATO intervention consequently as legitimate.

An important tool for this media strategy were the numerous Western-sponsored “media centres”, “activist groups”, “Twitter girls”, “human rights observatories” and the like, which provided Western news agencies and media with the desired images and information.

Since 2019, NATO-compliant media moreover had to conceal or discredit various leaks and whistleblowers that began to prove the covert Western arms deliveries to the Islamist “rebels” and “terrorists” as well as the staged “poison gas attacks”.

But if even the “terrorists” in Syria were demonstrably established and equipped by NATO states, what role then did the mysterious “caliph of terror” Abu Bakr al-Baghdadi play? He possibly played a similar role as his direct predecessor, Omar al-Baghdadi – who was a phantom.

Thanks to new communication technologies and on-site sources, the Syria war was also the first war about which independent media could report almost in real-time and thus for the first time significantly influenced the public perception of events – a potentially historic change.


Tyler Durden

Tue, 03/03/2020 – 22:45

via ZeroHedge News https://ift.tt/38iXFYg Tyler Durden

Tesla Downgrades Hardware On “New” Model 3s In China, Then Delivers Them Anyway To Unsuspecting Customers

Tesla Downgrades Hardware On “New” Model 3s In China, Then Delivers Them Anyway To Unsuspecting Customers

It looks like Tesla may have finally found a way to use up all of that old, unused inventory that’s been sitting on the company’s balance sheet: make new cars with old parts, and blame the coronavirus.

At least, that’s exactly what it appears the company is doing in China, according to a recent report by Xinhua

On Tuesday, the news broke that Tesla was “downgrading” hardware on its China made Model 3 due to “supply chain status amid the epidemic” and it then promised free upgrades to its customers. Instead of just doing the right thing, which would be suspending production until you can make the product property, Tesla is doing what it does best: half assing it. 

The report points out that some Chinese consumers were noticing that the hardware in their newly delivered Tesla vehicles was inconsistent with their orders. Tesla responded by saying that Hardware 2.5 had been installed in some vehicles that were promised Hardware 3.0.

Isn’t that a nice way to find out, as a consumer, that you’re not getting what you ordered?

Elsewhere, this would look suspiciously like a bait and switch. And it appears from Xinhua’s report that Tesla only fessed up after consumers started to take notice. We’d also be extremely interested in finding out when and how Tesla delivers on the promise of “free upgrades” for the customers taking delivery of their vehicles, with the wrong hardware, now.

The company’s Gigafactory in China resumed work on Feburary 10. 

People on social media were skeptical – to say the least. But it seems as long as Tesla’s stock holds up, Elon Musk will continue to get away with things like this. It’s when the tide goes out on the stock that we’re most interested in finding out what bubbles to the surface:


Tyler Durden

Tue, 03/03/2020 – 22:25

via ZeroHedge News https://ift.tt/2PHRir2 Tyler Durden

Physicist Says Parallel Universes Definitely Exist And We May Soon Explore Them

Physicist Says Parallel Universes Definitely Exist And We May Soon Explore Them

Authored by Aaron Kesel via TheMindUnleashed.com,

Theoretical physicist Sean Carroll expressed that clues in the small-scale structure of the universe point to the existence of numerous parallel worlds.

The shocking comments were made on the Jeff Rogan Experience (JRE) podcast last year. Carroll says that the fact that tiny particles like electrons and photons don’t have one set location in the universe is evidence that there are many parallel universes.

Recently, in a follow up interview with News.com.au, Carroll expanded his thoughts.

But there’s a lot more going on,” Carroll told News.com.au.Not every world you imagine actually comes true.”

The common sense rules of physics that rule our lives everyday make sense to us but at very minuscule scales common sense breaks down altogether. At the quantum level, the empty vacuum of space is filled with tiny particles constantly popping in and out of existence.

Bell’s theorem, a fundamental construct in quantum mechanics, may prove that multiverses exist.

This theorem deals with situations where particles interact with each other, become entangled, and then go their separate ways, according to New Scientist.

There are still equations, physical rules, patterns that must be obeyed. Some possible alternate worlds can come true. But not all of them,” Carroll said.

In the past, Carroll has advanced some groundbreaking yet controversial theories on topics such as the Big Bang theory and the nature of time.

He has said that the universe didn’t start in a huge explosion as most people now believe, but instead it is an infinitely old, constantly inflating entity in which time can run both forward and backward.

For Carroll quantum physics is not something that can be broken down and explained in simpler terms.

As far as we currently know,” he writes.

“Quantum mechanics isn’t just an approximation to the truth; it is the truth.”

Physics is stuck trying to understand the fundamentals of nature and the Big Bang,” Carroll said.

It’s time to take a step back and understand its foundations. It’s time to tackle our understanding of the quantum world.”

In 2011 physicist Brian Greene wrote a book exploring the possibility called The Hidden Reality: Parallel Universes and the Deep Laws of the Cosmos.

“You almost can’t avoid having some version of the multiverse in your studies if you push deeply enough in the mathematical descriptions of the physical universe,” Greene told NPR.

 “There are many of us thinking of one version of parallel universe theory or another. If it’s all a lot of nonsense, then it’s a lot of wasted effort going into this far-out idea. But if this idea is correct, it is a fantastic upheaval in our understanding.”

Even Stephen Hawking suggested that, thanks to quantum mechanics, the Big Bang supplied us with an endless number of universes, not just one.

Up until this point understanding quantum physics and its realms has been impossible, but Carroll hopes that is changing thanks to technology.

Now we’re getting better at that,” Carroll says.Technology has improved. Maybe things are going to change.”

Greene, Carroll, and Hawking may be right, and researchers at Oak Ridge National Laboratory in Tennessee want to find out if there are multiverses or mirror images of our own reality. The team was set to record experiments last year sending a beam of subatomic particles down a 50-foot tunnel, past a powerful magnet and into an impenetrable wall.

If it exists, it would form a bubble of reality nestling within the fabric of space and time alongside our own familiar universe, with some particles capable of switching between the two,” lead researcher Leah Broussard told New Scientist.


Tyler Durden

Tue, 03/03/2020 – 22:05

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“No Child Should Feel Stigmatized”: California Bill Would Punish Retailers With Separate Boys And Girls Departments

“No Child Should Feel Stigmatized”: California Bill Would Punish Retailers With Separate Boys And Girls Departments

A bill introduced by a California Democratic lawmaker would punish stores that separate toys, clothing and other children’s items into separate boys and girls sections – forcing them to pay a $1000 fine, according to The Federalist Papers.

I was inspired to introduce this bill after 8-year-old Britten asked, ‘Why should a store tell me what a girl’s shirt or toy is?” said California State Assembly member Evan Low of Silicon Valley, who unveiled AB 2826 last week. “Her bill will help children express themselves freely and without bias. We need to let kids be kids.”

Via a press release by Low:

Clothing and toys sections of department stores that are separated along gender lines pigeonhole children. No child should feel stigmatized for wearing a dinosaur shirt or playing with a Barbie doll, and separating items that are traditionally marketed for either girls or boys makes it more difficult for the consumer to compare products. It also incorrectly implies that their use by one gender is inappropriate.

The bill states:

This bill would require a retail department store with 500 or more employees to maintain undivided areas of its sales floor where, if it sells childcare articles, children’s clothing, or toys, all childcare items, all clothing for children, or all toys, regardless of whether a particular item has traditionally been marketed for either girls or for boys, shall be displayed. Beginning on January 1, 2023, the bill would make a retail department store that fails to correct a violation of these provisions within 30 days of receiving written notice of the violation from the Attorney General liable for a civil penalty of $1,000, as provided.

(a) A retail department store shall maintain one, undivided area of its sales floor where, if it sells childcare articles, all childcare articles, regardless of whether a particular item has traditionally been marketed for either girls or for boys, shall be displayed.

(b) A retail department store shall maintain one, undivided area of its sales floor where, if it sells children’s clothing, all clothing for children, regardless of whether a particular item has traditionally been marketed for either girls or for boys, shall be displayed.

(c) A retail department store shall maintain one, undivided area of its sales floor where, if it sells toys, all toys, regardless of whether a particular item has traditionally been marketed for either girls or for boys, shall be displayed.

Yet another ‘quirk’ for California retailers to love about the Golden State.


Tyler Durden

Tue, 03/03/2020 – 21:45

via ZeroHedge News https://ift.tt/2PHO5Yw Tyler Durden

How James Madison Lay The Ground For American Paranoia

How James Madison Lay The Ground For American Paranoia

Authored by Daniel Lazare via The Strategic Culture Foundation,

People have always wondered what makes America so paranoid. The historian Richard Hofstadter wrote about it in 1964 in a famous Harper’s essay, “The Paranoid Style in American Politics,” that he later expanded into a book. He took aim at all the usual suspects: Joe McCarthy going on about “a great conspiracy on a scale so immense,” turn-of-the-century Populists warning of international bankers seeking to crucify Americans on a cross of gold, antebellum Know-Nothings raving about Catholics and the Pope, and so on.

But one aspect Hofstadter didn’t address is why.

Why is it that Americans are so quick to blame their problems on others instead of themselves? Rather than analyzing their society in a calm and sensible way, why do they continually go in search of mysterious foreign cabals?

The question has never been more relevant than in an age of Russia, Russia, Russia. If Joe Biden is sagging at the polls, if Bernie Sanders is surging, or if Donald Trump is seemingly headed for a second term, then it can only mean one thing: the Kremlin is at it again. As the New York Times declared in all seriousness in explaining why Sanders and Trump are benefiting at Biden’s expense, it’s because they “represent the most divergent ends of their respective parties, and both are backed by supporters known more for their passion than their policy rigor, which makes them ripe for exploitation by Russian trolls, disinformation specialists, and hackers for hire seeking to widen divisions in American society.”

Since Russia finds it easier to manipulate Americans when they gravitate to the extremes, that’s where it somehow causes them to wind up.

Or so corporate media assure us. But where does such paranoid nonsense come from and why does the press bombard us with it night and day?

Although Hofstadter traced the problem back to the mid-nineteenth century, we can trace it back even farther – all the way, in fact, to the nation’s founding. Indeed, we might argue, with only slight exaggeration, that it began with a single individual: James Madison.

Madison, of course, is the wealthy Virginia slaveowner who played a leading role in the Constitutional Convention in 1787 and was an equally important figure in the great ratification debate that followed immediately after. He wrote 29 of the 85 newspaper articles known as the Federalist Papers, which expounded the new plan of government to his fellow countrymen.

And he authored the all-important Federalist No. 10, the essay that political scientists never tire of quoting, which argues that democracy must be endlessly checked and balanced against itself in order to prevent Americans from coming together in “a rage for paper money, for an abolition of debts, for an equal division of property, or for any other improper or wicked project.”

A Bernie supporter he was not. But Madison was even pithier in an October 1787 letter to Thomas Jefferson in which he summed up the meaning of checks and balances and separation of powers in a single sentence.

Divide et impera,” he wrote, “the reprobated axiom of tyranny, is under certain qualifications, the only policy, by which a republic can be administered on just principles.

These twenty-five words tell you everything you need to know about American politics, including why they’re now in such trouble. Divide et impera, Latin for “divide and conquer,” is Madison’s ironic justification for dividing government up into separate executive, legislative, and judicial functions and then pitting them against one another so as to neutralize democracy’s most dangerous tendencies.

The idea is to structure the polity in such a way that it ends up more rational and moderate than any of its components. But divide et impera leads to a paradox. If, as the Preamble to the Constitution states, “we the people” are the prime movers in the new republic, able to “ordain and establish” new constitutions and destroy old ones in the bargain like the 1783 Articles of Confederation, then what happens once they undergo the self-division and conquest that Madison describes? Are they still “we the people”? Or are they now an agglomeration of splintered sub-groups without any sense of collective democratic identity or will?

Anyone who studies American fragmentation will suspect it’s the latter. But that leads to another question. Psychologists tell us that a healthy, well-balanced adult is one whose intellect, emotions, and drives come together to form a balanced and integrated whole. Since the individual is in charge of all his faculties, he’s able to marshal his resources so as to solve problems, work creatively, and process information clearly, logically, and accurately.

But if those same faculties are fragmented and mutually at odds, the opposite occurs. Instead of marshalling his resource, the individual is paralyzed and confused. Instead of seeing the world as it is, he shies at phantoms of his own making. As a Bosnian psychologist named Vito Zepinic explained a few years ago, “the vulnerable self-structure of traumatized individuals” leads to “difficulties in self-regulation (self-esteem maintenance, lower tolerance levels, and the sense of self-discontinuity)” and “frequent upsurges of anxiety/fear, depression, and specific fears or phobias regarding the external world…”

What holds for individual patients also holds for a collective personality like the United States. Since 2000, it has suffered repeated traumas in the form of war, terrorism, military defeat, financial crisis, and stolen elections, the effect of which has been to take Madisonian self-disintegration and render it even more debilitating. “Difficulties in self-regulation” are what happens after decades of corruption and gridlock. Problems with “self-esteem maintenance” lead to an obsession with making America great again. “Lower tolerance levels” give rise to fears of alien hordes overrunning the border. “Phobias regarding the external world” are another term for mass paranoia about Russian agents lurking behind every bush and beneath every bed.

The upshot is a country that is lost, disoriented, and unable to tell where reality begins and fantasy leaves off. When the Washington Post recently reported that Russia is working behind the scenes to boost the Sanders campaign, a sensible person would have demanded to see the evidence. But not Bernie. To the contrary, he snapped to attention even though there was no evidence to be had and denounced Putin as an “autocratic thug” who should “stay out of American elections.”

Similarly, when CBS News asked Biden why he was doing so poorly, he replied that it’s because “the Russians don’t want me to be the nominee … they like Bernie.” When a reporter asked Pete Buttigieg what the Russias were looking to accomplish in the 2020 election, he explained with equal confidence: they “want chaos.”

They can’t process information concerning what Russia is really up to and therefore make up horror stories to scare themselves in the dark. Instead of exposing a petty imperialist like Jeff Bezos, the Washington Post’s owner, they allow themselves to be manipulated.

The upshot is a democracy that is too weak and fragmented to govern itself effectively. The big question is how to overcome Madisonian self-division so as to render democracy coherent and whole. But that’s a subject for another essay.


Tyler Durden

Tue, 03/03/2020 – 21:25

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“Ground Zero For Trade” – Port Of Long Beach Warns Of Shipping Slump From China

“Ground Zero For Trade” – Port Of Long Beach Warns Of Shipping Slump From China

Investors are grossly underestimating the potential economic impact of Covid-19 as the first signs of China’s supply chain meltdown are now washing ashore on US West Coast ports. 

The Port of Long Beach, the second-largest containerized port in the US, has had two top officials warn in the last several weeks of chilling effects of supply chain disruptions from China. 

Last week, the Deputy Executive Director of Administration and Operations for the Port of Long Beach Noel Hacegaba warned China’s economic paralysis led to the increase of blank sails between China and the US. He said port activity plunged in January and February, with expected weakness to continue through March.  

Hacegaba said the slowdown at Long Beach is starting to hit the local economy around the port. He said it could only be a matter of time before it triggers a broader slowdown in the region, and even maybe in the overall US economy. 

As we’ve noted in many pieces of creaking global supply chains fast emerging in China and spreading outwards, Deutsche Bank’s senior European economist Clemente Delucia last month pointed out in a report titled “The impact of the coronavirus: A supply-chain analysis” that the US is overly exposed to a crashing China economy.

As for the second Long Beach official, Bloomberg quoted Mario Cordero, executive director of the port, who said cargo volumes are expected to slump 9% YoY in February due to declining shipments from China.

Cordero said February’s YoY loss is nearly double of 2019’s decline of 5.4%, which has already resulted in a 50% reduction in labor at the port. He said the East Asia shipping route accounts for 90% of shipments through the port. 

“The port of Long Beach is ground zero for trade,” warns Cordero. “There was uncertainty with the trade war, but the coronavirus has taken it to chaotic.”

Downward pressure from supply chain disruptions in China has now spilled over into the rest of the world. The transmission mechanism to the US is West Coast ports. The port Long Beach handles $200 billion in trade annually and supports 2.6 million trade-related jobs across the country, including almost 600,000 in Southern California.

As for other West Coast ports, reports of a containerized volume declines from China are inevitable. These ports are a critical artery of the US economy’s transportation infrastructure and essential for the flow of imports and exports, representing about 12.5% of US GDP. 

A slowdown of containerized volume at Long Beach and other West Coast ports could suggest a broader economic downturn is ahead for the US economy. 


Tyler Durden

Tue, 03/03/2020 – 21:05

via ZeroHedge News https://ift.tt/2VIoaDy Tyler Durden