“War is the continuation of politics by other means.” Carl von Clausewitz (Prussian general and military theorist)
We can further deduce from the above Von Clausewitz quote that politics is a continuation of economics by other means. Therefore, it could be argued that war is always a continuation of economics by other means.
Now, let us briefly examine the current situation in Russia. President Putin has been under heavy pressure from outside and inside: Western sanctions and intended oil price crash. Despite efforts by the Rothschild-controlled Central Bank of Russia (hereafter referred to as CBR) and the use of dozens of billions of foreign exchange reserves – the value of the ruble against the dollar has, therefore ,declined by 39% during the past few years.
There has been much speculation that President Putin may soon nationalize the CBR and the ruble according to his senior advisor and chairman of the Russian parliament’s economic policy committee Yevgeny Fyodorov in order to raise money for Russia’s now necessary armament projects in what appears as an imposed war on Russia by Washington and NATO.
Under the Constitution, the CBR belongs to a foreign State – the City of London – and is taking orders from London and Washington’s controlled IMF. CBR can only print money corresponding to its cash in foreign currency, that being the dollar, which is not sufficient for Russia’s purposes. The CBR even has to buy the worthless US treasury bonds for the dollars paid for Russian oil – whereby the dollars are returned to the Federal Reserve Bank. This is one of the biggest heists of all time!
Moreover, President Putin is under pressure from the West, which wants to overthrow and replace him with Western-minded puppet oligarchs. Thus, the US ambassador to Moscow, John F.Tefft, is said to have made it very clear in this statement: “We will displace Putin from office and install our own people as leaders of the Russian government.” It was reported that Tefft even mentioned the appointed ministers by name! Therefore, it has now become logical [and necessary] for President Putin to enhance the Russian military and strengthen the already existing alliance with the SCO (Shanghai Cooperation Organization) to prevent Russia’s submission to Washington and NATO’s will. Sadly, it has come to this.
Yevgeny Fyodorov said in an interview that a split in the Russian elite has taken place in the last couple of years, as part of the elite have decided to stay with President Putin who then made his decision which defines the events to follow. Furthermore, the logic of:
1) A state of emergency, or
2) A geopolitical war entered into force, while Russia feels under pressure.
What this means is:
1) Washington cannot [and will not] diminish its pressure especially if the war-monger Hillary Clinton is installed into office, while
2) The pressure on Russia forces it to technologically evolve into a national liberation movement. For example, for many years, Russia could not obtain de-offshoring technology, but thanks to the pressures from Washington’s sanctions, Russia is now well into domesticating this task.
So what’s next? President Putin must now methodically clean the 5th column. That means the West-toxified liberals in the CBR, the Ministry of Finance, and the Ministry of Economy.
But above all, President Putin sees the West as the big speculator against the ruble. To put the plan straightforward:
1) A split in the government,
2) Identification of the 5th column in various branches of the government,
3) Identification of the 5th column in the media,
4) A parallel and active position on the Ukraine, because Ukraine and Russia’s ships must sail in the same direction for the good of all.
Nationalization of the CBR would be the first signal and the means to implement the final breach with the Rothschild’s City of London gangsters and its implementation arm, Washington. This Relationship has been tense since President Putin’s seizure of the Rothschild/ Chodorkowsky’s Yukos shares. Therefore, President Putin hesitates with the nationalization. He also still needs authorization to enforce his plan as the president of the Russian Federation. For this, he needs a “great necessity” which is apparently imminent because of Washington’s aggressions via the NATO.
Returning from the 2014 G20 meeting in Brisbane, President Putin said, “US wants to subdue Russia, but no one has ever done or would ever do.” It appears that this statement has a much deeper, existential dimension – not only for Russia, but for the entire world!
Moscow Times has been quoted by stating that President Putin has been under tremendous internal and external pressure to the extent that he must become “another Stalin“ in order for him and for Russia to survive the Western isolation efforts and the economic war currently waged on Russia. This means a final (staged) breach with the Rothschilds crime syndicate via Washington– after the first schism due to the by President Putin.
It is now evident that the CBR is Rothschild’s pincers on Russia and on President Putin’s leadership per se. CBR is a member of Rothschild’s BIS (Bank of International Settlements) which is the central bank of central banks located in Basel, Switzerland – of course.
The Rothschild banking power structure controls the CBR via the US Federal Reserve Bank, i.e. making the CBR unable to print more rubles than corresponding to its supply of foreign exchange. Russia sells oil for dollars. For the dollars, Russia buys US bonds, whereby the dollars return to the US Fed. This in really is theft! As such, the Fed is squeezing the Russian economy in a grand game of vice and illusion.
Russia’s monetary policy has until now been jointly determined by the Fed and the People’s Bank of China (PBC). This means that CBR has never really been in control of neither the ruble nor am independent Russian monetary policy. CBR can only defend against these entities by limiting its foreign exchange reserves, which are finite.
In spite of Yevgeny Fyodorov’s statement of nationalization of the private CBR, President Putin is cautiously reluctant to interfere with Rothschild’s CBR grip on Russia – at least for the time being.
CBR’s CEO Elvira Nabiullina, 49, has served as the country’s Minister of Economic Development and Trade since September, 2007 before becoming Vladimir Putin’s aide in May 2012. Now President Putin demands the impossible from her: to stop the decline of the ruble.
Ever emboldened by its totally illegal regime change policies in Iraq, Egypt, Libya, Syria, Ukraine, etc., Washington and its allies are now foolishly pursuing the same in Russia. Mikhail Fradkov, the head of the Foreign Intelligence Service (SVR), warned that Moscow is aware of US’s moves to oust President Putin from power. The ruble has lost approximately 40% of its value against the dollar in the past several years. (Business Insider, May 2, 2016). Nevertheless, President Putin still feels under heavy pressure from the West, as the West seems to stop at nothing.
Vladimir Putin wants to take action against ruble speculators: “External enemies” would try “to force Russia to her knees. We have asked the central bank to take measures to ensure that the speculators cannot benefit anymore,” the Financial Times quoted the Russian President as saying. “We know who these people are.” He classifies the entire West to be the author of anti-Russian actions. “It’s been that way for centuries.”
Russia Insider quoted President Putin on Dec. 5 2015 as saying, “Those whom we considered our friends from across the pond, they would gladly let Russia follow the Yugoslav scenario of disintegration. It did not work. Just as it did not work for Hitler, who set out to destroy Russia and push us back beyond the Urals. Everyone should remember how that ended.”
“No one will ever attain military superiority over Russia. We have a modern and combat ready army, a formidable army. We have the strength, will and courage to protect our freedom. Some governments attempt to create a new iron curtain around Russia” (The Grand Chessboard).
In my opinion what we are seeing is a big “coming out”. It is painfully clear that Russia considers Washington to be an arrogant bully whom Russia can stop and that Russia considers the regimes in power in the EU as voiceless colonies. Washington is too arrogant and the Europeans are too spineless.
The Kremlin has given up any hope of achieving anything through any kind of dialog.
From now on, Russia will mostly rely on unilateral actions. These actions will always come as a shock and a surprise to the Western plutocracies. This will be a long cold war and it will only end when one of the two sides basically breaks down and collapses. Now Russia is preparing for war, but she does not want this war; it is being imposed on her!
CNN Money reported on Dec. 3 2015: Yevgeny Fyodorov, a senior member of President Vladimir Putin’s party and chairman of the Russian parliament’s economic policy committee, accused the central bank of sabotage, telling local media that it was “an institutional enemy of the country.”
The bank is now being investigated by state prosecutors as a result. The bank’s biggest crime is failing to prevent the ruble from plunging – despite spending tens of billions of foreign currency reserves trying to prop it up.
Western sanctions froze investment and raised funding costs. The crisis has sparked a flight of capital — some $150 billion is expected to leave the country this year. Another $80 billion could follow in 2017.
Russia has been taking another big knock from the sharp fall in oil prices in the past few years. Revenues from oil and gas make up nearly half the Russian state budget. As revenues fall, the currency weakens further. This drives up inflation, forcing the CBR to jack up interest rates, exacerbating thereby depressing activity.
But Yevgeny Fyodorov has more to reveal: Wiki Spooks 3 Sept. 2015: He cited the unrelenting aggressive posture and actions by the West as having reached a stage where some in the Kremlin and other state institutions who decline to demonstrate appropriate national loyalty will have to be purged from leadership positions – the alternative being capitulation to the West.
“Our Central Bank, Ministry of Finance, Ministry of Economics, are driving us along the road to destruction of the Russian economy, because they are executing the orders of Washington and London”, Yevgeny Fyodorov has said.
Russia needs to return to a classical economy, nationalization of the ruble, discontinue the practice of currency reserves, and conduct accelerated de-off-shoring. That means freezing the assets of those who do not want to de-offshore which means all of the major foreign-owned businesses [of the foe nations] in Russia, Sadly, it has come to that.
Next, it’s just a question of when President Putin will get the revolutionary authority for a purge. That is a power that he currently does not have. We’re talking about an act directly contradicting the Constitution. This is something that will have to be legalized under legislation which will be passed by the Duma, giving President Putin special powers. Or else, there could be a referendum, in which the people give him those powers if they chose so. But it has to be done and it has to be done soon.
We recognize that the purge will begin. It doesn’t involve ejecting people. This purge does not intend to remove Alexey Simanovsky (left – Central Bank First Deputy Chairman) from the CBR. However, he will be chased out with sticks when he severely damages the interests of the Russian population and the Russian economy.
Again, US Ambassador in Russia John Tefft has clearly stated, “We’re going to force out Putin and appoint our people as the leader of the government and the ministers”. This was the scenario in Kiev.”
President Putin gathered the deputies in Yalta and looked each of them in the eye to ensure they wouldn’t get cold feet. And being thus strengthened, President Putin’s decision pre-determines the subsequent events.
Next, the Americans attempted to break the situation using the Boeing incident – but failed. On the contrary, the Russian national path began to strengthen. At this point, it was clear to all, that:
1) Either President Putin had to go to the Hague where the Americans would have conducted a forceful trial, leading to the destruction of Russia and the further disempowerment of the Russian population,
2) Or else, there will form a system of resistance to the actual foreign invasion. A dynamic has now begun, which pushes President Putin in that direction:
a) The purge,
b) Building a national economy
This brings us back to CBR which won’t allow the money to be lent to President Putin’s above-stated three objectives. As soon as the CBR and the ruble are nationalized, entrepreneurs can be granted business savvy loans.
As stated earlier, under the Constitution, CBR (for all practical purposes) works for a foreign state, i.e. Federal Reserve, City of London, and other Rothschild entities.
With those words, President Putin has defined his position and Russia’s strategy. It will all begin with certain mechanisms like nationalization of the CBR due to a necessity that doesn’t have to be far off because Washington is charging with frightful force. The Americans are not going to save anyone. They only need oligarchs while Russia is a formidable challenge for them which they intend to solve by dissolution of the state – Yugoslavia styled. After that, it has now become crystal clear that Washington fully intends to construct an absolutely brutal, not just colonial, but an enslaved world!
Putin: Nyet to Neo-liberals, Da to National Development
After more than two years of worsening economic growth and an economy struggling with 10.5% central bank interest rates that make new credit to spur growth virtually impossible, Russian President Vladimir Putin has finally broken an internal factional standoff. On July 25 he mandated that an economic group called the Stolypin Club prepare their proposals to spur growth revival to be presented to the government by the Fourth Quarter of this year. In doing so, Putin has rejected two influential liberal or neo-liberal economic factions that had brought Russia into a politically and economically dangerous recession with their liberal Western free market ideology. This is a major development, one I had been expecting since I had the possibility to exchange views this June in St. Petersburg at the annual St. Petersburg International Economic Forum.
With very little fanfare, Russian press a few days ago carried a note that could have a most profound positive significance for the future of the Russian domestic economy. The online Russian blog, Katheon, carried the following short notice: “Russian President Vladimir Putin instructed (the Stolypin economist group–w.e.) to finalize the report of the Stolypin Club and on its basis to prepare a new program of economic development, alternative to Kudrin’s economic plan. The program itself should be given to the Bureau of Economic Council in the IV quarter of 2016.”
In their comment, Katheon notes the major significance of the decision to drop the clearly destructive neo-liberal or free market approach of former Finance Minister Alexei Kudrin: “The Stolypin club report advises to increase the investment, pumping up the economy with money from the state budget and by the issue of the Bank of Russia. In turn, the concept of the Center for Strategic Research (Alexei Kudrin) suggested that investments should be private and the state is to ensure macroeconomic stability, low inflation, reduced budget deficit.”
In the current situation of severe Western economic and financial sanctions against Russia the flows of such private investment into the economy as the Kudrin camp advocates are rare, to put it gently. Cutting what is a very minimal budget deficit only increases unemployment and worsens the situation. President Putin has clearly realized that that neo-liberal “experiment” has failed. More likely, is that he was forced to let economic reality unfold under the domination of the liberals to the point it was clear to all internal factions that another road was urgently needed. Russia, like every country, has opposing vested interests and now clearly the neo-liberal bested interests are sufficiently discredited by the poor performance of the Kudrin group that the President is able to move decisively. In either case, the development around the Stolypin Group is very positive for Russia.
In convening the new meeting of the Economic Council Presidium on May 25, after a hiatus of two years, President Putin, noting that the group deliberately consisted of opposing views, at that time stated, “I propose today that we start with the growth sources for Russia’s economy over the next decade…The current dynamic shows us that the reserves and resources that served as driving forces for our economy at the start of the 2000’s no longer produce the effects they used to. I have said in the past, and want to stress this point again now, economic growth does not get underway again all on its own. If we do not find new growth sources, we will see GDP growth of around zero, and then our possibilities in the social sector, national defense and security, and in other areas, will be considerably lower than what is needed for us to really develop the country and make progress. “
Now just two months later, Putin obviously has decided. He clearly has an eye as well to Russia’s next presidential elections in March 2018. In doing so he has selected the one group of the three on the Economic Council that believes that the state has a positive role to play in development of the national economy.
The Stolypin group in many ways harkens back to the genius behind the German “economic miracle” after 1871, whose ideas created the most impressive economic growth from backwardness in all Europe within just over three decades. The only other countries to come near to that German economic achievement were the United States after 1865, and the Peoples’ Republic of China after 1979, with the Deng Xiaoping “Socialism with Chinese Characteristics.” The national economic development model is based on the work of the now-all-but-unknown 19th Century German national economist, Friederich List, the developer of the basic model of national economic development.
During the Shock Therapy years of Boris Yeltsin in the 1990’s, Harvard economists like Jeffrey Sachs, financed by meta-plunderer George Soros, advised Yeltsin. The disastrous policies of Yeltsin’s economic team, then led by Yegor Gaidar, implemented wholesale privatization of state assets at dirt-cheap prices to Western investors like Soros. They made drastic state budget reduction, cuts in living standards, elimination of old age pensions of the population. All was done in the name of “free market reform.” After that trauma, beginning with Putin’s first Presidency in 1999 Russia slowly began a painful recovery not because of the Gaidar-Harvard shock therapy, but rather despite it, a tribute to the determination of the Russian people.
As astonishing as it might seem, those free market ideologues, followers of the late Gaidar, until now have held a virtual monopoly over policies of the Economics and Finance Ministries of Russia.
They have been aided by the leader of a slightly different but equally destructive monetarist camp, Central Bank of Russia Governor Elvira Nabiullina who only seems obsessed with controlling inflation and stabilizing the Ruble.
This past May Putin gave the first sign that he was open to the idea that the ever-reassuring reports of his finance and economic ministers about how “recovery is just around the corner” (as Herbert Hoover allegedly said at onset of America’s Great Depression in 1930) were not right. The Russian President convened the Presidium of the Economic Council, a group which had not met in two years, charging them to come up with a plan to solve Russia’s economic problems. The Presidium consisted of thirty five members representing each of the three major economic camps.
Former neo-liberal Finance Minister Alexei Kudrin headed one camp backed by Finance Minister Anton Siluanov and Economic Minister Alexey Ilyukayev. This group demands the usual Western laissez-faire remedies such as drastic reduction of the role of the state in the economy via wholesale privatization of the railways, energy companies like Gazprom, and other valuable assets. Kudrin was also named by Putin to chair the newly-reorganized twenty-five-member economic strategy group in May. Many national economists feared the worst at his naming, namely a revival of Gaidar shock therapy, Mach II. That now will clearly not happen. Kudrin and his approach have been rejected as not effective.
The second group was represented by central bank head, Elvira Nabiullina. They were the most conservative, claiming that no reforms were needed and that no economic stimulus was needed either. Just hold a steady course under double-digit central bank interest rates and that will somehow kill inflation and stabilize the Ruble, as if that was the key to open the economic growth potential of Russia. It has instead been the key to slowly kill the economy and increase inflation.
The third group represented was the one most Western observers ridiculed and dismissed, with the US Pentagon-linked Stratfor referring to them as a “strange collective.” I have personally met and talked with them and they are hardly strange to anyone with a clear moral mind.
This is the group which after two months has emerged with the mandate from Vladimir Putin to lay out their plans to boost growth again in Russia.
The group is in essence followers of what the great almost-forgotten 19th Century German economist, Friedrich List, would call “national economy” strategies. List’s national economy historical-based approach was in direct counter-position to the then-dominant British Adam Smith free trade school.
List’s views were increasingly integrated into the German Reich economic strategy beginning under the Zollverein or German Customs Union in 1834, that unified one German internal domestic market. It created the basis by the 1870’s for the most colossal emergence of Germany as an economic rival exceeding Great Britain in every area by 1914.
This third group, the Stolypin group in the May, 2016 meeting, included Sergei Glazyev, and Boris Titov, co-chair of Business Russia, and Russia’s “business ombudsmen” since the creation of that post in 2012. Both Titov and Glazyev, an adviser to Putin on Ukraine and other matters, are founding members of the Stolypin Club in Russia. In 2012 Glazyev was named by Putin, then Prime Minister, to coordinate the work of federal agencies in developing the Customs Union of Belarus, Kazakhstan, and Russia, today the Eurasian Economic Union. Titov, also the Leader of Right Cause party, is a successful Russian entrepreneur who in recent years has turned to work advancing various economic policies within the state, often in vocal opposition to Kurdin’s free-market liberal ideas. Notably, Titov is also co-chairman of the Russian-Chinese Business Council.
A broad indication of the kind of proposals the Stolypin group will propose to revive substantial economic growth in Russia and deal with major basic infrastructure deficits that greatly hinder productive enterprise came in a series of proposals Glazyev made in September 2015 to the Russian Security Council, a key advisory body to the President.
There, Glazyev proposed a five-year ‘road map’ to Russia’s economic sovereignty and long-term growth. It was aimed toward building up the country’s immunity to external shocks and foreign influence, and ultimately, toward bringing Russia out of the periphery and into the core of the global economic system. Goals included raising industrial output by 30-35 percent over a five year period, creating a socially-oriented ‘knowledge economy’ via the transfer of substantial economic resources to education, health care and the social sphere, the creation of instruments aimed at increasing savings as a percent of GDP, and other initiatives, including a transition to a sovereign monetary policy.
In 1990 the first priority of Washington and the IMF was to pressure Yeltsin and the Duma to “privatize” the State Bank of Russia, under a Constitutional amendment that mandated the new Central Bank of Russia, like the Federal Reserve or European Central Bank, be a purely monetarist entity whose only mandate is to control inflation and stabilize the Ruble. In effect money creation in Russia was removed from state sovereignty and tied to the US dollar.
Glazyev’s 2015 plan also proposed to use Central Bank resources to provide targeted lending for businesses and industries by providing them with low subsidized interest rates, between 1-4 percent, made possible by quantitative easing to the tune of 20 trillion rubles over a five year period. The program also suggested that the state support private business through the creation of “reciprocal obligations” for the purchase of products and services at agreed-upon prices. As well Glazyev proposed that the Ruble build up its strength as an alternative to the de facto bankrupt dollar system by buying gold as currency backing. He proposed that the Central Bank be mandated to buy all gold production of Russian mines at a given price, in order to increase the ruble gold backing. Russia today is the world’s second largest gold producer.
Obviously Russia’s President has realized that whatever impressive advances Russia makes in the foreign policy area can be fatally undercut by a failing economy, Russia’s Achilles Heel as I noted in an earlier piece. The July 25 announcement by Putin has the potential to reverse that if done with resolution on all levels. There the President has a responsibility to clearly lay out their strategy over the coming five years—by the way a very useful time frame to judge results having nothing to do with old Soviet five-year plans, as France’s De Gaulle understood as well. By giving the population a clear vision of their future, he can tap into the remarkable Russian human resources to literally accomplish the impossible in turning the economy into a genuine prosperity based on sounder foundations than that of the monetarist laissez faire West which today is de facto bankrupt. Bravo Russia!