German Economy Minister Habeck Reportedly Pushing For Nuclear Plants To Stay On Grid

German Economy Minister Habeck Reportedly Pushing For Nuclear Plants To Stay On Grid

It sure looks as though momentum is all of a sudden getting behind nuclear power, with even NPR coming out and writing yesterday that “resistance to nuclear power is on the decline worldwide — and environmentalists helped lead the push.”

Now, with energy prices going parabolic in his country, German Economy Minister Robert Habeck is once again pushing nuclear power plants that were set to be shut down to stay on the grid for longer, Bloomberg reported yesterday. 

The ministry is looking at a potential draft law to facilitate the extension, Bloomberg noted, citing Der Spiegel. It has also changed the parameters for stress tests on the country’s energy security that would make prolonging the reactors a viable option. 

Recall, in mid August, we wrote that Germany was considering the idea of keeping the plants online. 

The country has been mulling over the idea of extending the life of its nuclear power plant fleet for months as the ‘wait and see’ approach of Russia actually increasing Nord Stream 1’s NatGas capacity to normal levels ahead of winter is a dangerous one.

As German power prices surged above 500 euros per megawatt-hour on the European Energy Exchange AG for the first time as the energy crisis worsened, WSJ reported two weeks ago that the largest economy in Europe would “postpone” the closure of its last three nuclear power plants.

Three senior government officials told WSJ that the decision to extend the life of its nuclear power plants has yet to be formally adopted by German Chancellor Olaf Scholz’s cabinet and will still need a parliamentary vote. 

However, following the WSJ report that indicated Germany plans to postpone the closure of its last three nuclear power plants, the German spokesperson for the Federal Ministry for Economic Affairs and Climate Action said the media report about extending the life of nuclear plants “lacks any factual basis.” 

We wonder if Germany would like to revisit this statement now? We noted a couple weeks ago that the country has about three months to save itself from a winter energy crisis. 

Tyler Durden
Thu, 09/01/2022 – 05:45

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Blain: UK Risks Losing Its Status As A ‘Sound Financially-Sovereign Nation’

Blain: UK Risks Losing Its Status As A ‘Sound Financially-Sovereign Nation’

Authored by Bill Blain via MorningPorridge.com,

The miserable have no other medicine, but only hope”

The UK is at risk of breaking its “Virtuous Sovereign Trinity” of stable politics, currency and bond markets. Collapsing confidence in politics to stem the slide in sterling and thus Gilts, could see the UK stumble into a crippling Sovereign Financial crisis sooner than we think possible.

It’s the very last day of Summer – Autumn starts tomorrow! Traditionally, the week following the US holiday is the start of the critical Q3 funding season – the busiest time in the Investment Banking calendar. Every bank should be prepping IPOs, Capital Raises, M&A financing, and bond deals to launch into the September markets. Bankers are keen to rise up the league tables and lock in their big bonuses. Investors are back at their desks – looking to make good on the last few months of the year….   It’s a feeding frenzy, and a time to slip out a few deals nobody will notice into the feeding frenzy mayhem….

At least that’s how it used to be.

This year there is uncertainty piled upon instability built on a foundation of contradictions.

Rising rates, soaring inflation, crashing real discretionary spending, upwards of 20% of all corporates effectively “Zombies” as rates and costs crush them. And some folk still think stocks look good value…?

Selectively some are. There are things we need – like water, power, transport, foodstuffs. There are things we don’t – like new stuff, expensive holidays, meals out, and especially new tech. When consumers have zero discretionary spending power – there will be massive corporate pain leading to redundancies and a growing jobs queue. The Occident will become something like a siege economy.

Some stocks will be less bad than other stocks – but folk need to be very selective to make a good argument inflation-hedged stocks offer the best strong and stable returns in an inflationary/stagflationary environment.

Of course, when the going gets tough, the tough get … nervous about capital preservation.

Which is why Sovereign Bond Markets are the great bastion of security, and the flight to safety trade in times of financial peril… Sure, bonds may have negative real yields, but at least you get your money back, and unlike cash you get a bit of interest to partly compensate inflation. Yep, bonds are great for capital preservation and will enable you to sleep sound at night..

Right up to the moment they don’t..

Whoa – Time-out for a second:  While writing the Porridge each morning I try to be completely objective – although I do like to say things as I see them, spicing up the facts with some opinions. There is no compliance officer editing my comments to make sure I’m balanced, fair-handed, or to ensure I don’t make ridiculous promises about the performance of investment.

But there are some mornings when I do find myself wondering: “If this is so obvious to me… why doesn’t everyone else see it as well? This is one of these mornings. Let me continue….

Maybe inflation will continue to spiral out of control. That, of course, is bad news for bonds. If you buy a 5 year £100 Government bond today, and inflation remains 10% for the next five years, you will still get £100 back at maturity, but that £100 will only buy £60 worth of goods at today’s prices. Ouch. But it may still be better than a stock that goes bankrupt.

But then there are times when even Sovereigns get into trouble – and you need to factor in a host of additional risks and factors. What makes a good Sovereign go bad? Why can Japan bumble along quite happily with debt equivalent to a 3.5x multiple of GDP, while the market thinks Italy is defacto broke at 1.5x? Why is Argentina perennially broke?

What are the triggers for a sovereign debt crisis?

A number of years ago I came up with a very simple way to describe how the forces on Soveriegn Debt confidence function.

Sovereign Debt is all about confidence. I called it the Virtuous Sovereign Trinity: how the legs are the political economy, currency and debt. As long as a nation is politically stable and commercially effective, its currency is sound, and its debt market is open and stable, then it’s a tick in terms of its sovereign credit.

A sound financially Sovereign Nation will never go broke. It will always be able repay its debt. In times of crisis it will be able to borrow to cover emergency spending. It can always set the printing presses into money creation mode to repay debt. It will be able to maintain its currency by demonstrating its commercial and political stability.

However, a nation where confidence in its political system to maintain a stable and effective platform for commerce has collapsed, or where debt is spiralling out of control, and a crashing currency has triggered successive waves of inflation… then… crisis writ large and chaos.

You know where this is going…….

Yesterday, candidate for the next Prime Minister of this sceptred Isle – but certain loser – Rishi Sunak highlighted the risks the UK breaks the Virtuous Sovereign Trinity, how markets could lose confidence in the UK economy, and that gilts could become increasingly difficult to fund. Ouch.

According to the FT (Rishi Sunak warns of risk that markets lose faith in UK economy), he was speaking to a gathering of some of the 160,000 older, rich, white men choosing our next PM. He raged against the winner, next Prime Minister, Liz Truss, that it would be “complacent and irresponsible not to be thinking about the risks to the public finances”.

The most telling comment in the FT article was: “During the Q&A, not a single Tory member mentioned the cost of living crisis — the nearest was a query on better insulation of homes. The biggest applause came for Sunak’s stance on cultural issues: “I want to take on this leftie woke culture that wants to cancel our values, our culture and our women.”

The FT also commented: “Some have said the Tory leadership contest is taking place in a parallel world to that inhabited by many voters, and on Tuesday party members turned up in Bentleys and Porsches to hear Sunak’s pitch.”

The UK has long prided itself on stable politics. That appears to be breaking down – and it  changes global perspectives on UK investment opportunities.

Its curious to think of how Sunak – who got the job as Chancellor when his then boss, Sajid Javid refused to allow Boris and his then sidekick Dominic Cummings to take over his role and sack his advisors – is becoming the voice of Tory reasonableness. No doubt he will continue to do so from the back benches, although most pundits think he’ll be off to the USA. Sunak warned against taking away the Bank of England’s independence, and that the Conservative Party “risked its reputation” for fiscal discipline.

I nearly choked at that one…

What “reputation”?

Let’s face it.. since David Cameron took office as Prime Minister on May 11, 2010, the UK hasn’t had its best decade. Cameron had the great advantage of being able to blame his coalition partners – the Liberals – for all the mistakes in his first government, before winning a proper majority on the basis he’d promised a Brexit referendum. He never considered, even remotely, the likelihood he might lose – and walked off in a huff when he did in 2016. He was followed by the not very strong or stable Theresa May, and then by Boris – which ended in farce and acrimony. And now Truss.

Brexit and the enforcement of Brexit purity has dominated every action and thought of government. It has morphed into a cancer eating into the UK’s ability to maintain confidence in our Virtuous Sovereign Trinity. Since Brexit, Sterling has lost about 16% of its value against the Euro.

In the meantime, the UK’s institutions of state; education, health, defence, transport infrastructure, energy security, even water – (FFS – we are nation where you know it’s going to rain because it’s not raining yet..). Nothing… absolutely nothing works.

Yet, the Tories may still get lucky..

Aside from the wealthy Tory members (all 160k of them who choose our next PM), the remaining 62 million UK citizens have much more on their minds than who wins the Tory election jolly. We live in the real world. We are looking at whole cataclysm of pain, including:

  • A crippling cost of living crisis impacting across society

  • Goldman Sachs warning of 22% inflation

  • 70% of pubs closing

  • High streets being denuded by failing shops

  • Food banks and Clothing handouts for the kids

  • Soaring energy and food bills

  • Liz Truss promising to cut taxes – which doesn’t help when you just lost your job and face the bureaucratic nightmare of trying to claim benefits

  • Financial Penury

  • Our kids futures being crushed.

  • Etc, etc, etc…

I am trustee of a major health charity. We are seeing massive increases in clients suffering depression, mental health issue and in fear from their collapsing finances. These fears are demonstrably making their health worse. The same is true across the whole of society.

What’s the solution? Sound government by grown-ups would stand a good chance of creating the stability and confidence the UK needs to borrow its way out of the looming crisis. Picking a jury that hasn’t already decided Liz Truss will just be No 4 in line of Tory failures will be a problem. The UK needs a clean start. It’s probably time for an election – although I have limited confidence Labour can do much better.

(Disclosure – I voted for Brexit and I voted Tory in 2019. Definitionally these two crimes again humanity qualify me as an idiot.)

Tyler Durden
Thu, 09/01/2022 – 05:00

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The New Abortion Prohibition Era


topicsfuture

Americans disagree about abortion. This is the understatement of 2022, yet it bears repeating in the wake of Dobbs v. Jackson Women’s Health Organization, the June Supreme Court decision that returned abortion policy to state and federal legislatures. Ten states have already banned abortion and another four have prohibited abortions after six weeks of pregnancy, which amounts to nearly the same thing.

We already know what happens when governments try to impose prohibitions. We’ve seen it play out in gun control, immigration, sex work, the war on drugs, and other issues where large groups of people want or need something the government tells them they’re not allowed to have. The result is messy, deadly black markets.

The war on drugs has amply demonstrated the lengths to which governments will go to stop prohibited behavior. In the name of recreational drug prohibition, the state locks people up, steals their money, militarizes borders, wages war, and muddies international diplomacy. States abridge the voting rights, Second Amendment rights, and freedom of movement of hundreds of thousands of people associated with the sale and use of illegal drugs.

There is every reason to think that governments will do all this and more when it comes to abortion, which to pro-lifers represents a much graver threat than mere heroin or escorts. In fact, the drug-war apparatus that is already in place can be smoothly extended to the drugs already used in more than half of the roughly 650,000 abortions that happen in the U.S. annually.

We are entering the new abortion prohibition era, and we must reckon with its true costs.

There are plenty of pro-life libertarians, including several at Reason. They argue that the role of the state is to protect life, liberty, and property, that a fetus is a life, and therefore there is a justifiable state interest in banning abortion. This is a respectable view with a long history. Any good-faith conversation about abortion begins with a recognition that there may indeed be competing moral or legal claims between the woman and the fetus—between the mother and her child, if you like.

Most Americans think that, especially in the first trimester, it is permissible to resolve those claims in favor of the mother. A significant majority—about 85 percent—consistently tell pollsters they believe abortion in the first trimester is permissible. And more than 90 percent of the abortions that are actually performed are in the first trimester. Most Americans do not see the typical abortion as something that should be punishable in the way that murder is punishable. People arrive at this shared destination by walking many convoluted roads: through the rights to privacy, self-defense, or bodily autonomy; through feminism, environmentalism, or faith.

The fact that most Americans believe something doesn’t tell us much about whether that thing is right or true, of course. After all, a majority of Americans also tell pollsters they believe Atlantis was real.

But even if large majorities shared the pro-life view, anti-abortion laws are still very different from laws against murder in an important respect. When there is such deep, sincerely held disagreement about matters of such personal import, when hundreds of thousands of women every year personally weigh the factors and decide that an abortion is the right choice, that is a signal that new prohibition regimes will be extremely costly, and perhaps ultimately unjustifiable. Not everything bad must be banned. In the last three decades, abortions have fallen precipitously, from a high of 1.4 million in 1990, even as the law has remained largely unchanged, suggesting that even those who believe abortion to be a moral nightmare have other options at their disposal and that those other tools were working. We should seriously consider whether the outcomes are better all around if governments leave it to individuals to persuade each other, help each other, and talk to each other.

To do that, Americans need to be able to speak freely about abortion. They will need to share information about how abortions work and who gets them. And they’ll need to do that in broad daylight, so that bad information doesn’t go unchecked. This will be more difficult in states that choose more draconian criminalization regimes.

Old federal laws, still on the books, about mailing abortion information are about to become extremely relevant. But most of us don’t learn important information via the U.S. Postal Service these days; we get it online. Naturally, legislators of both parties are immediately keen to meddle with that flow.

In July, a group of congressional Democrats sent a letter to Google, demanding restrictions on search results for abortion-related terms that refer users to anti-abortion crisis pregnancy centers. Sen. Elizabeth Warren (D–Mass.) took things a step further, introducing a bill calling for the closure of the centers under the rubric of “disinformation.” Republicans responded with a measured and principled defense of free speech and free association. Just kidding! They wrote a letter to Google threatening legal action if Google ceded to Democratic demands.

Model legislation being circulated by the anti-abortion group National Right to Life is forthright about its desire to restrict speech: Aiding and abetting an abortion, the group suggests, should “include, but not be limited to: (1) giving instructions over the telephone, the internet, or any other medium of communication regarding self-administered abortions or means to obtain an illegal abortion; (3) hosting or maintaining a website, or providing internet service, that encourages or facilitates efforts to obtain an illegal abortion; (4) offering or providing illegal ‘abortion doula’ services; and (5) providing referrals to an illegal abortion provider [numbering in original].”

Abortion will join sex work and election disinformation as a justification for restricting online speech, both personal and commercial.

Free speech isn’t the only arena where many people will pay for abortion prohibitions with their liberties and privacy. To criminalize abortion is to make criminals of pregnant women and their doctors, as well as their mothers, their boyfriends, their Uber drivers, their pharmacists, their doulas, or anyone else who plays a part. Many opponents of abortion seek to downplay the harsh logic of prohibition and its consequences for those it is meant to help. But the incarcerated drug user and the child in a border camp beg to differ. Soon this cast will have another character: the bleeding woman forced to lie to her emergency room doctor.

As with other prohibitions, poor people and minorities will suffer most. People without resources in states with harsh restrictions will carry unwanted babies to term and, if current trends hold, they will most often keep them despite financial or personal difficulties they will face in doing so. Wealthy women will be able to travel to get abortions, and they will be able to hire lawyers to get them out of trouble when they get caught. In those cases, the new laws won’t stop those women from getting abortions; instead they will simply get abortions secretly, unsupported, at greater expense, and far from home.

It’s been a while since first-​trimester abortions were illegal anywhere in the United States. But we have spent the decades since Roe experimenting with all kinds of other prohibitions, and all we have for our trouble is a trail of death and destruction.

The post The New Abortion Prohibition Era appeared first on Reason.com.

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Turkey Seeks To Prove Greek S-300 “Harassment” Of Turkish Jets At NATO HQ

Turkey Seeks To Prove Greek S-300 “Harassment” Of Turkish Jets At NATO HQ

Inter-NATO tensions are heating up after a series of aerial engagements over the eastern Mediterranean. The most significant recent incident, which we detailed earlier this week, was on Aug.23rd and involved Turkey alleging that Greek forces achieved radar lock on a Turkish F-16 jet over international airspace

Athens was quick to vehemently deny the charge amid ongoing allegations from Ankara that Greece is seeking to militarize islands near the Turkish coast which are under treaty. But Turkey is intent on making its case to NATO command, in the latest sign of significant cracks in the military alliance.

As Turkey’s Hurriyet Daily writes, the defense ministry “will send the radar traces and pictures of the Greek harassment of the Turkish jets by the S-300 air defense systems to NATO as well as to all 30 allied countries, according to sources.”

Turkish AF F-16, Wiki Commons

Turkey earlier called the radar lock a “hostile act” – which could have justifiably triggered a military counter-response if Ankara had made the decision. 

Greece, for its part, says that on the day in question Turkish warplanes violated Greek airspace without any prior warning, describing that the Turkish aircraft appeared without notice to escort American B-52s. While the B-52s had been cleared to cross its airspace, the Turkish planes appeared as unknown entities. Athens viewed it as an intentional provocation.

Turkey is also expected to document to NATO headquarters that Greek jets have violated its airspace over 250 times in harassing maneuvers.

“The ministry also informed that the Greek warplanes violated the Turkish airspace 256 times since the beginning of 2022,” the Hurriyet report says. “In addition, they harassed the Turkish jets 158 times this year, the ministry said. On the sea, the Greek coastal guards violated the Turkish territorial waters 33 times, it added.”

For years, Turkey, Greece and Cyprus have been at odds over expanding Turkish oil and gas drilling rights in the eastern Mediterranean. Turkey is using its occupation of northern Cyprus to say that all waters encircling the island are fair game for its research and drilling vessels.

Other EU members, particularly France, have strongly supported EU-member Cyprus’ condemnation of incursions in its territorial waters. France has even conducted a series of joint exercises with Greece and Cyprus in solidarity. 

Tyler Durden
Thu, 09/01/2022 – 04:15

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Poland “Will Not Get EU Recovery Funds”, Warns Top EU Parliament Politician In Latest Attack

Poland “Will Not Get EU Recovery Funds”, Warns Top EU Parliament Politician In Latest Attack

Authored by Grzegorz Adamcyzk via Remix News,

No matter how much Poland contributes to Ukraine war aid, the country will not receive any European Union recovery funds, said Guy Verhofstadt, a Belgian politician and leader of the Group of the Alliance of Liberals and Democrats for Europe (ALDE Group) in the European Parliament.

Verhofstadt, who has long opposed Poland’s government, issued the threat on social media. While Poland has fulfilled EU milestones set by Brussels to unlock National Recovery Plan funds, the EU has issued new milestones in what appears to be an effort to continuously move the goalposts and interfere in Poland’s upcoming elections in favor of the left-wing opposition.

In 2017, we heard from Verhofstadt when shortly after Poland’s Independence March he called the participants of the patriotic demonstration “60,000 fascists, Nazis and white supremacists” in a forum of the European Parliament.

Verhofstadt is also very keen on voicing his opinion about Poland on social media. Let us note that despite the unprecedented support Poland provides to war refugees from Ukraine, it still has not received any new funds from the EU.

Now, the Belgian politician has appealed to not unfreeze the EU recovery funds as well.

He is currently attending Campus Polska, a left-wing conference, where he appears together with Warsaw Mayor Rafał Trzaskowski and Radosław Sikorski, the former Polish foreign minister. They will discuss “a Europe of shared healthcare standards, law mechanisms, security policies, protection of civil rights, and energy.”

Warsaw Mayor Trzaskowski bragged earlier that during his talks with European Commission President Ursula von der Leyen he had received confirmation “that Brussels will impose additional demands on the Polish government before it receives due funds from the National Recovery Plan.”

What is interesting, the very same Polish politician in 2018 said in an interview for Radio ZET: “Thanks to our efforts, those funds have not disappeared but are frozen instead. If we win the next elections, those funds will get unfrozen.”

Tyler Durden
Thu, 09/01/2022 – 03:30

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Brickbat: What’s Your Hurry?


Miami Dade Police car

Florida’s Miami-Dade Police Department said it is investigating video showing an officer blocking a pregnant woman from entering the emergency room of Jackson Memorial Hospital’s West Campus. The video shows two officers parked at the entrance to the ER, apparently talking to each other from their cars, when Kevin and Sabrina Enciso pull up. When the police cars didn’t move, Kevin honked his horn. One officer drove off, but the other pulled the two over and wouldn’t let them leave. When Kevin tried to explain that his wife was pregnant and was recently in an accident and in pain, the officer insisted on calling fire rescue, even though they were just outside the door to the ER.

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Brickbat: What’s Your Hurry?


Miami Dade Police car

Florida’s Miami-Dade Police Department said it is investigating video showing an officer blocking a pregnant woman from entering the emergency room of Jackson Memorial Hospital’s West Campus. The video shows two officers parked at the entrance to the ER, apparently talking to each other from their cars, when Kevin and Sabrina Enciso pull up. When the police cars didn’t move, Kevin honked his horn. One officer drove off, but the other pulled the two over and wouldn’t let them leave. When Kevin tried to explain that his wife was pregnant and was recently in an accident and in pain, the officer insisted on calling fire rescue, even though they were just outside the door to the ER.

The post Brickbat: What's Your Hurry? appeared first on Reason.com.

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Europe Has No Real Alternatives To Russian Gas: Ex-Aramco EVP

Europe Has No Real Alternatives To Russian Gas: Ex-Aramco EVP

Echoing what Zoltan Pozsar said in his latest must read note, the former executive vice president at Saudi Aramco, Sadad Al-Husseini, told CNBC on Monday that there’s not enough capacity in the world to replace Russia’s gas supply to the European Union, while Moscow has plenty of markets to sell its energy to.

“The US doesn’t have the LNG capacity to replace Russia’s exports to Europe,” he said, noting that power bills across the EU are set to soar this winter. He did not comment on China reselling Russian LNG to Europe although we expects others will soon. 

According to Al-Husseini, the lack of freely available supply could lead to serious problems on the global energy market. “This situation is a new world, and it’s not a very good one for energy,” he warned.

“In any case, there isn’t enough LNG capacity in the world to make up for the Russian exports to Europe,” the former executive said, adding that, “It will take years for the EU to find resources to replace Russian supply.”

He also said that while Russia may lose Europe as an end-market, there are “plenty of alternative markets” for Russian energy, including China, Japan, or India, that eagerly flount Western sanction, realizing that the Biden admin is increasingly toothless in punishing sanctions violators.

Meanwhile, Europe does not have alternative energy sources, he said, “while the US is maxed out already, North Africa has got problems,” and OPEC is also running out of spare capacity.

“So, it’s a global problem,” he said.

The official suggested that, while the Russian economy may suffer under Western sanctions, the rest of the world will be suffering with them.

However, he stressed that “Russia may recover a lot sooner than Europe.”

Tyler Durden
Thu, 09/01/2022 – 02:45

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Escobar: Ukraine – Somewhere Between Afghanization And Syrianization

Escobar: Ukraine – Somewhere Between Afghanization And Syrianization

Authored by Pepe Escobar,

Ukraine is finished as a nation – neither side will rest in this war. The only question is whether it will be an Afghan or Syrian style finale…

One year after the astounding US humiliation in Kabul – and on the verge of another serious comeuppance in Donbass – there is reason to believe Moscow is wary of Washington seeking vengeance: in the form of the ‘Afghanization’ of Ukraine.

With no end in sight to western weapons and finance flowing into kyiv, it must be recognized that the Ukrainian battle is likely to disintegrate into yet another endless war. Like the Afghan jihad in the 1980s which employed US-armed and funded guerrillas to drag Russia into its depths, Ukraine’s backers will employ those war-tested methods to run a protracted battle that can spill into bordering Russian lands.

Yet this US attempt at crypto-Afghanization will at best accelerate the completion of what Russia’s Defense Minister Sergei Shoigu describes as the “tasks” of its Special Military Operation (SMO) in Ukraine. For Moscow right now, that road leads  all the way to Odessa .

It didn’t have to be this way. Until the recent assassination of Darya Dugina at Moscow’s gates, the battlefield in Ukraine was in fact under a ‘Syrianization’ process.

Like the foreign proxy war in Syria this past decade, frontlines around significant Ukrainian cities had roughly stabilized. 

Losing on the larger battlefields, kyiv had increasingly moved to employ terrorist tactics. 

Neither side could completely master the immense war theater at hand. So the Russian military opted to keep minimal forces in battle – contrary to the strategy it employed in 1980s Afghanistan.

Let’s remind ourselves of a few Syrian facts: Palmyra was liberated in March 2016, then lost and retaken in 2017. Aleppo was liberated only in December 2016. Deir Ezzor in September 2017. A slice of northern Hama in December and January 2018. The outskirts of Damascus in the Spring of 2018. Idlib – and significantly, over 25 percent of Syrian territory – are still not liberated. That tells a lot about rhythm in a war theater.

The Russian military never made a conscious decision to interrupt the multi-channel flow of western weapons to kyiv. Methodically destroying those weapons once they’re in Ukrainian territory – with plenty of success – is another matter. The same applies to smashing mercenary networks.

Moscow is well aware that any negotiation with those pulling the strings in Washington – and dictating all terms to puppets in Brussels and kyiv – is futile. The fight in Donbass and beyond is a do or die affair.

So the battle will go on, destroying what’s left of Ukraine, just as it destroyed much of Syria. The difference is that economically, much more than in Syria, what’s left of Ukraine will plunge into a black void. Only territory under Russian control will be rebuilt, and that includes, significantly, the bulk of Ukraine’s industrial infrastructure.

What’s left – rump Ukraine – has already been plundered anyway, as Monsanto, Cargill and Dupont have already bagged 17 million hectares of prime, fertile arable land – over half of what Ukraine still possesses. That translates de facto as BlackRock, Blackstone and Vanguard, top agro-business shareholders, owning whatever lands that really matter in non-sovereign Ukraine.

Going forward, by next year the Russians will be applying themselves to cutting off kyiv from NATO weapons supplies. As that unfolds, the Anglo-Americans will eventually move whatever puppet regime remains to Lviv. And kyiv terrorism – conducted by Bandera worshipers – will continue to be the new normal in the capital.

The Kazakh double game

By now it’s abundantly clear this is not a mere war of territorial conquest. It’s certainly part of a War of Economic Corridors – as the US spares no effort to sabotage and smash the multiple connectivity channels of Eurasia’s integration projects, be they Chinese-led (Belt and Road Initiative, BRI) or Russian-led (Eurasian Economic Union , EAEU).

Just like the proxy war in Syria remade large swathes of West Asia (witness, for instance, Erdogan about to meet Assad), the fight in Ukraine, in a microcosm, is a war for the reconfiguration of the current world order, where Europe is a mother self-inflicted victim in a minor subplot. 

The Big Picture is the emergence of multipolarity.

The proxy war in Syria lasted a decade, and it’s not over yet. The same may happen to the proxy war in Ukraine. As it stands, Russia has taken an area that is roughly equivalent to Hungary and Slovakia combined. That’s still far from “task” fulfillment – ​​and it’s bound to go on until Russia has taken all the land right up to the Dnieper as well as Odessa, connecting it to the breakaway Republic of Transnistria.

It’s enlightening to see how important Eurasian actors are reacting to such geopolitical turbulence. And that brings us to the cases of Kazakhstan and Turkey.

The Telegram channel Rybar  (with over 640k followers) and hacker group Beregini revealed in an investigation that Kazakhstan was selling weapons to Ukraine, which translates as de facto treason against their own Russian allies in the Collective Security Treaty Organization (CSTO). Consider too that Kazakhstan is also part of the Shanghai Cooperation Organization (SCO) and the EAEU, the two hubs of the Eurasian-led multipolar order.

As a consequence of the scandal, Kazakhstan was forced to officially announce the suspension of all weapons exports until the end of 2023.

It began with hackers unveiling how Technoexport – a Kazakh company – was selling armed personnel carriers, anti-tank systems and munitions to kyiv via Jordanian intermediaries, under the orders of the United Kingdom. The deal itself was supervised by the British military attaché in Nur-Sultan, the Kazakh capital.

Nur-Sultan predictably tried to dismiss the allegations, arguing that Technoexport had not asked for export licenses. That was essentially false: the Rybar team discovered that Technoexport instead used Blue Water Supplies, a Jordanian firm, for those. And the story gets even justice. All the contract documents ended up being found in the computers of Ukrainian intel.

Moreover, the hackers found out about another deal involving Kazspetsexport, via a Bulgarian buyer, for the sale of Kazakh Su-27s, airplane turbines and Mi-24 helicopters. These would have been delivered to the US, but their final destination was Ukraine.

The icing on this Central Asian cake is that Kazakhstan also sells significant amounts of Russian – not Kazakh – oil to Kiev.

So it seems that Nur-Sultan, perhaps unofficially, somehow contributes to the ‘Afghanization’ in the war in Ukraine. No diplomatic leaks confirm it, of course, but bets can be made Putin had a few things to say about that to President Kassym-Jomart Tokayev in their recent – ​​cordial – meeting.

The Sultan’s balancing act

Turkey is a way more complex case. Ankara is not a member of the SCO, the CSTO or the EAEU. It is still hedging its bets, calculating on which terms it will join the high-speed rail of Eurasian integration. And yet, via several schemes, Ankara allows Moscow to evade the avalanche of western sanctions and embargoes.

Turkish businesses – literally all of them with close connections to President Recep Tayyip Erdogan and his Justice and Development Party (AKP) – are making a killing, and relishing their new role as crossroads warehouse between Russia and the west. It’s an open boast in Istanbul that what Russia cannot buy from Germany or France they buy “from us.” And in fact several EU companies are in on it.

Ankara’s balancing act is as sweet as a good baklava . It gathers economic support from a very important partner right in the middle of the endless, very serious Turkish economic debacle. They agree on nearly everything: Russian gas, S-400 missile systems, the building of the Russian nuclear power plant, tourism – Istanbul is crammed with Russians – Turkish fruits and vegetables.

Ankara-Moscow employ sound textbook geopolitics. They play it openly, in full transparency. That does not mean they are allies. It’s just pragmatic business between states. For instance, an economic response may alleviate a geopolitical problem, and vice versa.

Obviously the collective west has completely forgotten how that normal state-to-state behavior works. It’s pathetic. Turkey gets “denounced” by the west as traitorous – as much as China.

Of course Erdogan also needs to play to the galleries, so every once in a while he says that Crimea should be taken back by kyiv. After all, his companies also do business with Ukraine – Bayraktar drones and otherwise.

And then there’s proselytizing: Crimea remains theoretically ripe for Turkish influence, where Ankara may exploit the notions of pan-Islamism and mostly pan-Turkism, capitalizing on the historical relations between the peninsula and the Ottoman Empire.

Is Moscow worried? Not really. As for those Bayraktar TB2s sold to kyiv, they will continue to be relentlessly reduced to ashes. Nothing personal. Just business.

Tyler Durden
Thu, 09/01/2022 – 02:00

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