The Economic War the West Never Expected

The Economic War the West Never Expected

‘Gas for Roubles’: The Economic War the West Never Expected

President Putin’s Full Remarks at the Oil for Ruble announcement

Ed Note – Amarynth

The video that we could obtain, was only a snippet and that is posted here:

The full address is worth taking a look at, as Mr Putin in no uncertain terms told the west and Europe what they are doing. I caution that this is a machine translation, so, fine parsing of words may not be productive. This is the gist of what Mr Putin said.

As the Kremlin website is more down than up, this machine translation came via a poster on Moon of Alabama.  We thank you for grabbing it,  karlof1 | Mar 31 2022 16:33 utc | 94

Today I have signed an Executive Order that establishes the rules for trade in Russian natural gas with so-called unfriendly states. We offer counterparties from such countries a clear and transparent scheme. To purchase Russian natural gas, they must open ruble accounts in Russian banks. It is from these accounts that payment will be made for gas delivered starting tomorrow, from April 1 of this year.If such payments are not made, we will consider it a failure to fulfill obligations on the part of buyers – with all the ensuing consequences. No one sells anything to us for free, and we’re not going to do charity either. That is, existing contracts will be stopped.

I would like to stress once again that in a situation where the financial system of Western countries is used as a weapon, when companies from these states refuse to fulfill contracts with Russian banks, enterprises, individuals, when assets in dollars and euros are frozen, it makes no sense to use the currencies of these countries.

In fact, what’s going on, what’s already happened? We supplied European consumers with our resources, in this case gas, and they received it, paid us in euros, which they then froze themselves. In this regard, there is every reason to believe that we have supplied part of the gas supplied to Europe virtually free of charge.

This, of course, cannot continue. Moreover, in the case of further gas supplies and their payment under the traditional scheme, new financial revenues in euros or dollars can also be blocked. Such a development of the situation is quite expected, especially since some politicians in the West talk about it, speak publicly. Moreover, it is in this vein that the heads of government of the EU countries speak. The risks of the current state of affairs are, of course, unacceptable for us.

And if you look at the issue as a whole, the transfer of payments for the supply of Russian gas to Russian rubles is an important step towards strengthening our financial and economic sovereignty. We will continue to consistently and systematically move in this direction within the framework of the long-term plan, to increase the share of settlements in foreign trade in the national currency and the currencies of those countries that act as reliable partners.

By the way, you have probably heard that many traditional suppliers of energy resources to the world market are also talking about diversifying settlement currencies.

Let me repeat once again: Russia values its business reputation. We comply with and will continue to comply with our obligations under all contracts, including gas contracts, and we will continue to supply gas in the established volumes, I want to emphasise this, and at the prices specified in the existing long-term contracts.

I emphasize that these prices are several times lower than the current quotes on the spot market. What does that mean? Simply put, Russian gas is cheaper energy, heat, light in the homes of Europeans, an affordable cost of fertilizers for European farmers, and therefore, food in the end. Finally, this is the competitiveness of European enterprises, and hence the salaries of Europeans, citizens of European countries.

However, judging by the statements of some politicians, they are ready to neglect the interests of their citizens, if only to please their overseas master, the suzerain. Some kind of populism inside out: people are encouraged to eat less, dress warmer to save on heating, refuse to travel – and all this supposedly for the benefit of those people from whom these voluntary deprivations are demanded for the sake of abstract North Atlantic solidarity.

Such dubious approaches and actions in economic, energy, food policy on the part of Western countries have been observed for more than a year.

By the way, the food crisis will be followed by another inevitable, another wave of migration, including primarily to European countries.

Nevertheless, step by step, decisions are being made that push the world economy to a crisis, lead to the severance of production and logistics ties, lead to an increase in global inflation and increased inequality, to a decrease in the well-being of millions of people, and in the poorest countries – I have already said this – to the tragedy of mass starvation.

Naturally, the question arises: who is responsible for this? Who will be responsible for this?

It is clear that the United States will again try to solve its problems – namely its own problems – at someone else’s expense, including launching a new wave of emissions and budget deficits. It has already grown exorbitantly, and in the leading European economies the record is broken by inflation, and in the United States. And at the same time, they are trying to blame their mistakes in economic policy on us, they are always looking for someone to blame. It’s pretty obvious, we’re seeing it.

I would like to add that the United States will try to capitalize on the current global instability, as it did during the First and Second World Wars, during its aggressions against Yugoslavia, Iraq, Syria and so on. Global markets are falling, and the value of shares of companies of the American military-industrial complex is only growing. Capital is flowing into the U.S., depriving other regions of the world of development resources.

As a result, Europeans are not only forced to fork out, but also, in fact, with their own hands to undermine the competitiveness of European companies, to remove them from the global market. For Europe, this means large-scale de-industrialization and the loss of millions of jobs, and against the background of rising prices for food, gasoline, electricity, housing and communal services, there is also a radical decline in the standard of living of citizens.

This is the price that the ruling Western elites offer to pay to people, as I have already said, for their ambitions and short-sighted actions both in politics and in the economy, including for the economic war that they are trying to unleash against Russia, or, one might say, have already unleashed.

It didn’t start now, it didn’t start in the last month. Illegitimate sanctions and restrictions have been imposed against our country constantly, for many years. Their goal is to restrain Russia’s development, undermine our sovereignty, and weaken our potential in production, in finance, in technology.

Let me repeat that all these sanctions were prepared in advance, they would have been introduced in any case, I want to emphasise this. In fact, these are sanctions for our right to freedom, for the right to be independent, for the right to be Russia. For the fact that we do not want to dance to someone else’s tune, to sacrifice our national interests and traditional values.

The collective West is not going to abandon the policy of economic pressure on Russia. Moreover, of course, he will look for new reasons for sanctions, namely pretexts. Therefore, it is not worth counting on changing these approaches, at least in the near future.

In this regard, I would like to ask the Government, the Bank of Russia and the regions to ensure that the sanctions pressure on our country, as it was in previous decades, will continue when organising systematic work to develop the economy and its individual sectors. That is the objective reality.

What do I consider important to note here and I ask you to draw the attention of all colleagues to this? Considering the situation in each specific industry, sphere, it is necessary to focus not only on overcoming the challenges of the current year, but also to build long-term development plans based on the internal capabilities of our economy, Russian science and education system. We must rely primarily on private business initiative and healthy competition, strive to maximize the load of our enterprises, create new competencies and increase Russia’s global competitiveness as a whole.

At the same time, the key indicators of the effectiveness of economic policy for us should be the preservation and creation of jobs, the reduction of poverty and inequality, improving the quality of people’s lives, the availability of goods and services. It is with these requirements in mind that we discussed the situation in the construction and housing sector last week.

Ukrainian Update #9

Paul Craig Roberts

Just as everything you were told about Covid by the media and health and government officials was false, so is everything you have been told by the same propagandistic liars about Ukraine. Americans have had nothing but lies since the assassination of US President John F. Kennedy, of his brother, US Senator Robert Kennedy President-in-Waiting, Martin Luther King, the Vietnam war, 9/11, Saddam Hussian’s nonexistent “weapons of mass destruction,” Assad’s “use of chemical weapons,” Iranian nukes, the extraordinary lies about Kaddafi, Covid pandemic, Russian invasions. The entire Western World lives in The Mattrix, a world created by propaganda. The vast majority of people in the West have no idea of the reality in which they live. This makes them impotent and completely unable to protect their freedom. They are sitting ducks for tyranny which is fast enclosing around them.

Take the Ukraine narrative, for example. The story as presented to the public by the Western media has no relationship to reality.  The Ukraine narrative has collapsed as completely as the Covid narrative.  There will be no going back to it.  The narrative will simply be dropped as the next crisis–inflation perhaps or a newly released pathogen–takes the front page.

There was never a Russian invasion of Ukraine.  Russian military focus was on the Donbass region in east and south Ukraine.  Inhabited by Russians and part of Russia herself until Soviet leaders transferred it, like Crimea, into Ukraine for their reasons.  When the US overthrew the democratically elected Ukrainian government in 2014 and took control over Ukraine, the Crimean and Donbass Russians voted overwhelmingly to be reunited with Russia.  The Kremlin accepted Crimea but not Donbass.

This was a strategic blunder demonstrating a lack of awareness on the part of the Russian government.  Immediately the neo-Nazi remnants in west Ukraine, whose forebears had fought for Hitler against Russia in WW II, began abusing the Russian population in the Donbass region in the east. The American puppet government in Kiev followed up by banning the use of the Russian language. 

To protect themselves, the Donbass Russians declared their independence in the form of two republics, the Donetsk and Luhansk Republics.  Ukrainian troops and neo-Nazi militias began attacking these “breakaway republics.”  They have been shelling with artillery Donbass villages, towns, and cities for 8 years, killing thousands of civilians, and the Ukrainian forces, although twice defeated  by hastily assembled forces in the Donbass, managed to gain control over large areas of the breakaway republics.

It was the deployment of a 100,000 or more Ukrainian force on the shrunken borders of Donbass for an invasion to reconquer the territory that provoked the Russian intervention. Washington’s refusal to give the Kremlin a security guarantee was a second reason for the Russian military intervention.  Russia told Washington in completely clear language that Russia would not permit Ukraine to be a member of NATO.  Nevertheless, Washington persisted in its provocation.

Most of Russia’s military intervention in Ukraine is focused on clearing Ukrainian and neo-Nazi forces out of Donbass.  This is the reason for Putin’s go-slow war that rules out heavy weapons use on civilian areas.

The civilians are Russians, and, as Putin said, “we went in to liberate these people, not to kill them.”

The West’s media whores and government officials misrepresent the Russians’ intention of avoiding the death of Russian civilians as a sign of a “stalled Russian invasion,” as CNN and the NPR whores proclaim.  Some of the Western media whores go even further and say it is a “Russian defeat.”

If there is a Russian defeat, it will happen in negotiations, not on the battlefield.  Russians are too trusting to be negotiators and never do well.

The battle field has a higher standard of performance.  Before any Russian troops entered Donbass, the Ukrainian military infrastructure, air force, and navy were completely destroyed.  The Ukrainian army is incapable of action. It has no communication, no air cover, and is cut off from supplies.

Russia’s reason for the peace negotiations is to avoid destroying the Ukrainian troops that the neo-Nazi commissars require to fight to the last man.  Russia doesn’t seem to understand that they are negotiating with a “government” that is not in control of anything.

The Russians have deployed 200,000 troops against Ukraine’s 600,000 soldiers trained and armed by the US and UK.  The Ukrainian army, which outnumbered the Russians 3 to 1, was destroyed as a fighting force even quicker than the Russians destroyed the US and Israeli armed and trained Georgian army that invaded South Ossetia in August, 2008. 

The only reason that any building, any Ukrainian exists in Ukraine is Russian restraint.

The Kremlin is confident that Russia can achieve its objectives without destroying Ukraine.  This is true militarily, but I do believe that the Russian government is too gullible to be successful in negotiation.  Russia still has a moral fiber and mistakenly inputs one to the West. The West does not have any moral fiber.  Russians do not know how to negotiate with Satan.  Remember Hugo Chavez’s speech at the UN.  Remember the Jewish-American Secretary of State saying on national TV that America’s murder of 500,000 Iraqi children “was worth it.” Yes, worth it for Israel’s dominance of the Middle East.

Americans, British, French, Germans, Japan, all of the US empire do not understand how they have been betrayed, how they have been implicated in monstrous crimes, how they have been brainwashed by lies from a media that they stupidly trusted, how Washington has destroyed the reputation of the United States, or why most of the world hates America.

Neither do the dumbshit fools understand that the American Empire is at its end. What the sanctions have done is to destroy the dollar-based world that allowed the Americans to impose the financing of their huge trade deficit, due largely to US corporations offshoring their production for the US market, on the rest of the world. Russia, China, central and east Asia will now create their own methods of payment separate from the West. This will destroy dollar hegemony and American power.

We come full circle. The American hubris created an arrogance that could not prevail over Russian, Chinese, and  Indian determination to exist as sovereign nations.  American globalism, Washington’s method of exercising hegemony, is collapsing.  The idiots in Washington have themselves collapsed their ruling system by mindless sanctions that are driving the East out of the dollar system.  

Russia has only one problem.  Russia’s problem is internal.  The problem consists of  elements of the intellectual and upper class and financial system who see their interests allied with the West. These traitors, tolerated by the Kremlin, are de facto Western agents created during the Yeltsin regime by the American overlords.

In the Russian government their most powerful person is the head of the Russian central bank whose policies serve the West and not Russia.  Putin, despite the warnings from Russia’s only economist, Sergey Glazyev, trusts the pro-American head of the Russian central bank with Russia’s future. The Russian central bank, which has never served Russia, is Washington’s greatest asset in its hopes to defeat Russia.  It is Putin’s blindness to this threat that is the dagger at Russia’s heart.

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