Pages

▼

Thursday, June 11, 2015

Ukraine SITREP June 11th, 2015 by Scott



Vox of Populi: If Putin ran for President of the USA in 2016, on a platform of banishing all incumbent members of the house and senate to re-education camps in Outer Mongolia, he’d win by a landslide..

I would add that if Putin ran for President of Russia today on a platform of banishing all incumbent members of the Russian parliament and government and the Russia’s Central bank to re-education camps in Outer Mongolia, he’d would also win by a landslide..

I want to start today’s SITREP by introducing you to a very curious document developed by the European Parliament in 2012 titled: The Composition of Russia’s New Cabinet and Presidential Administration, and its Significance
The analysis consolidated in this document can be a good vantage point while observing the actors within Russia’s government.

I apologize beforehand for the length of the following material. You can skip all this and go straight to the Ukraine and Novorossia SITREP part, if you aren’t interested in noises produced by the Russia’s neo-con liberal “elite.”
From the time of the dissolution of the Soviet Union, the Russian liberals’ tasks have been to keep the Russian people down, the Russian government out of economy and politics, and the Western Governments in.
The reality of the modern Russia is that self-name “liberal opposition” is a misnomer. The neo-con Liberals (NCL) have actually ruled Russia for the good part of the quarter of the century, not with an “iron fist,” but with a silk rope thrown over the nation’s throat, slowly strangling the living daylights out of it.

The NCL’s front men were: a Louie Vuitton model (Gorbachev) who signed a Secret Memorandum Accord in Belovezhskaya Pusha to dissolve USSR against the will of the general population.
Yeltsin, the Alcoholic, who took power in a violent putsch. He supervised the transfer of the nation’s treasure, 20,000 tons of gold, and the giants of the Soviet industries to the Western governments and private persons for free. He supervised dismantling of the excellent Soviet education system, very respectable health care system, powerful military system, intelligence and science, museums, libraries and archives. Without the government patronage, sports, arts, wildlife preservation, national parks, forestry and fishery were made superfluous.

Have you ever seen a neo-con Liberal riding a horse or petting a tiger? With the Soviet Government gone, wild animals in Russia lost their custodian, and have been disappearing with alarming speed. Same tragic ends faced purebred and pureblood horses who by the tens of thousands were sent to slaughter houses in the 90s. Some Imperial Russian and Soviet breeds of horses don’t even exist anymore after only 25 years of Liberal tyranny. Even now, if a Russian horse wins an international competition its provenance is intentionally marked as “unknown,” so the Russian horse breeders cannot enter international markets.

With all the pillars of modern civilization all but gone, Russian villages, as a lifestyle and tradition, were wiped out of the face of the earth. All over Russia, tens of thousands of village and millions of houses stand vacant. Today, the local authorities give houses and land for free to people who would venture to live and work there.
Yeltsin and the neo-con liberals behind him supervised the reduction in population of Russia. Russian people, including the ingenious people of Sahalin and Yakutia, were disappearing at the rate of 1 million persons every year under the Liberal tyranny.

According to Sergey Glazyev, an economist and a member of Russia’s Academy of Science, the Western governments and companies sucked out over $2 trillion dollars from Russia for the past 25 years.
Putin and the patriots behind him tried to stop and even reverse the trend at the beginning of 2000s, but were pushed out by the overpowering Liberal lobbies with iPhone playing Medvedev as their front man. For some years it looked like all was lost, and the US and EU governments will finish Russia off economically and politically, but patriots returned, and neo-con liberals virtually overnight went from being the ruling class to the opposition. Virtually because they are still running the banking system, monetary systems, and educational system of the country, as Sergey Glazyev reports. [Source]  You can find a partial translation of the Glazyev’s interview at the end of this SITREP.
Why you should never trust a “recovering” neo-con liberal and a Western grants eater
The day after Russia’s government adopted the law regarding “undesirable” organizations or foreign NGOs [Source] it just caught up with the US Foreign Agents Registration Act, albeit 80 years late.
By adopting this protective and reasonable law, Russian Government turned off the US State Department’s money spigot to the pro-Washington neo-con liberals. As expected, some of these very same neo-cons started singing Patriotic Tunes. While some are fleeing the country like Sergey Guriev and Konstantine Sonin, others, like Sergey Karaganov are staying behind to mind a store.
In May, Sergey Karaganov published an interview that was translated by FortRuss. He claims that: The best result of last year is consolidation of Russian elites before global challenges [Source]
The Russian full version of his interview is here:
Some of his points:
a. “Elite are people, only better quality;”
b. “Elite special qualities are developed in constant interaction and confrontation with those whom they represent;”
b. “Rights of ownership should be married to elite;”
c. “We tried to act like adults and build democracy, but democracy is a bonus to hard work, that’s why Russia is sliding back to authoritarianism. ”
d. “We need to develop legal protection of ownership, develop local organs of self-governing, and develop and educate young people.”
e. “I admit, I can’t understand why the saturation of our economy with money is significantly lower than in developed countries, and in times less, than in developing?”
(BTW, This question is answered by Sergey Glaziev, see my translation of the excerpts from his interview at the end of this SITREP. He says it’s because Russia is still ruled by the Washington Consensus Doctrine. This doctrine for countries with primitive economies and doesn’t allow a country to issue more money than this country has foreign currency reserve. Elvira Nabiullina is the biggest proponent of maintaining this financial situation in Russia.
Elvira Nabiullina, ( page 10)  is a head of the Central Bank of Russia “who held the economic development portfolio between 2008 and 2012, replaced Arkady Dvorkovich as aide to the president on economic issues. She is the wife of Yaroslav Kuzminov, the rector of Moscow’s very prestigiousHigher School of Economics (HSE).
Sergey Karaganov saying that he doesn’t understand why our economy’s saturation with money is significantly lower than in developed countries, and in times less, than in developing, shows, at best, that he is an incompetent moron, or at worst, a dishonest sack of horse manure.)
f. “The second important factor is the creation of conditions for a radical reconfiguration of the entire structure of foreign economic relations. And most importantly, of course, need to return the material production of his unconditional status of primacy. In modern mobile format and focus on global markets.”
“It is clear, Karaganov says, it is believed that such fundamentally new challenges Russia is facing now, people who build a system of public administration in the 1990s cannot cope. We, probably, need a “team change.” And there are guys out there for a new team. Not even dozens, but hundreds of worthy contenders. They need to replace those who are associated with the obsolete model. Of course, this is a very difficult and painful process. But it’s worth it.”
So, this was an opinion of one Sergey Karaganov, a publicist, a former fellow of David Rockefeller’s Council on Foreign Relations.
What about Sergey Karaganov, a Dean of the School of International Economics and Foreign Affairs of the National Research University — Higher School of Economics (NRU – HSE)? [Source]
What’s going on in HSE under Karaganov’s watch?
Using an example of just one upcoming conference in HSE, let’s see how the neo-con “elite” consolidating.
Upon closer view the National Research University – Higher School of Economics (HSE) looks like an anti-Russia neo-con liberal snake nest paid for by NATO, the EU, the U.S. State Department, Soros, Rockefeller, and the Koch Brothers, among others. On the other hand this school is a family seat and Alma Mater for the most influential people in the government and finance, with the head of school being appointed by the former President Medvedev himself:
On one hand, the school’s ex-rector just fled to France with $3.5 billion dollars in his fanny pack, admittedly fearing for his life and freedom. On the other hand, the schools new rector is married to the Head of the Russia’s Central bank, who just singlehandedly destroyed ruble as a currency, hurt Russia’s economic partners like Belorussia, turned millions of Russians from middle class to poor, drained Russia’s foreign resources. Instead of being in jail for treason, she is heralded by the Washington economic elite for the job well done.
Just two weeks ago, I reported on HSE hosting seminars financed by the Koch Brothers’ Industries on how to overthrow the Russia government.
Now HSE is hosting a new conference, “Institutions, Elites and Collective Action in the Developing World” June 29- July 1, 2015.
Main topics of the conference:
● Elites and elite networks in Russia
● Incentives for bureaucracy in Russia and China
● Trust and Cultural Norms in Russia
● Collective action in Russia
● Social policy in Russia
The study of “Collective Actions” in Russia is an huge ongoing project involving the largest Western universities and Think Tanks. I won’t clutter this SITREP with more links, but if you research “collective actions in Russia,” you can find hundreds of papers and books on the subject. The main point is how to bring out and manage the “collective actions” of Russian people.
See the list of the research papers generated by the International Center For the Studies of Institutions and Development (ICSID) [Source]
“Who demands collective action in imperfect institutional environment? ” – in other words: how can Maidan be orchestrated in the places of higher education, science and NGOs?
“Who demands collective action in imperfect institutional environment: Case-study of attorneys’ professional community in Russia.” – How can Maidan be orchestrated by the legal community?
“Means of production versus means of coercion: can Russian business limit the violence of a predatory state?” – Can businesses block/overthrow the Russian government?
“Regional Heterogeneity and Incentives for Government” – How the local government bureaucrats can be bribed, payoff and coerced to become anti government
“Choosing Channels of Influence in Hybrid Regimes: Direct and Indirect Lobbying Across the Russian Federation.”
The large amount of these research are done and published in German.
Another field of HSE research is Collection of personal information on Russian government officials
See the File Russian Governors Code book (link above) which is a spreadsheet with hundreds of probing questions concerning every aspect of the personal and professional lives of Russia’s governors.
How is spying on government officials and collecting bits of personal information on a premade spread sheet considered scientific research? It looks like this information is being collected by HSE in order to exercise an undue influence on authorities. It’s a misuse of, or unauthorized access to, personal information.
Let’s take a look at people participating in this scheme.
Participants:
1. Timothy Frye is the Marshall D. Shulman Professor of Post-Soviet Foreign Policy and director of the Harriman Institute at Columbia University; he is also the research director of the International Center for the Study of Institutions and Development at the Higher School of Economics in Moscow. He is currently finishing a book on property rights in Russia.
He is also well known for generating anti-Russia and anti-Putin analysis for such anti-Russia think tanks as Carnegie Corporation
Carnegie Corporation is a huge supporter of arming Ukraine against Russia, and keeping Ukraine at most distance from Russia, and of bombing Iran.
Most importantly, that the think tank Carnegie Moscow Center is on the list of undesirable foreign NGOs and banned by the Russian government.
Why is Timothy Frye, an agent of the banned NGO, teaching students in the School of Economics in Moscow?
In his Washington Post article The downsides of Crimea for Russia [Source]  Timothy Frye calls the Crimean referendum “a joke wrapped in a farce inside a tragedy.”
Because, in his personal opinion having NATO military bases and nukes in Crimes would be an “Upside for Russia.”
To make his point against Russia, Timothy Frye doesn’t shy away from spreading blunt disinformation. He doesn’t let the facts interfere with his propaganda. He writes: “While Russia will be able to expand its military presence in Crimea after annexation, these facilities were never under serious threat in the first place.” What about the State Department Procurement office 2013 tenders for building the US NAVY base in Sevastopol, Crimea? [Source]
2. Another speaker at this oncoming conference is a former Jamestown Foundation Fulbright scholarwho lived and worked for Jamestown in Ukraine, Ora John Reuter.
John Reuter published for Jamestown Foundation a few articles about the Chechen (CIA trained) suicide bombers as “victims of Russian “counter-terrorist” operations.” Not a word about the innocent Russian victims of these bombers.
Jamestown Foundation is a Washington based think tank devoted to destroying first the USSR and now Russia.
Ora John Reuter is an assistant professor of political science at the University of Wisconsin, Milwaukee, and a senior researcher at the International Center for the Study of Institutions and Development at the Higher School of Economics in Moscow. He is currently completing a book manuscript on dominant parties in authoritarian regimes of Russia and China.
He is one of the authors of the work on the import of color revolutions. Reuter, Ora John E., and Robertson, Graeme. “Legislatures, Cooptation, and Social Protest in Contemporary Authoritarian Regimes,” and “Online Social Media and Political Awareness in Authoritarian Regimes.”
John Reuter was a participant of the conference Ukraine: One Year After Maidan: A Roundtable Discussion [Source] with the founder and editor pro-Maidan pro-NATO and rabidly anti-Russian StopFake.org Ukrainian journalists Olga Yurkova.
John Reuter Curriculum Vita, notice his obsession with “dominant parties” in the non-democratic regime of Russia.
3. Another participant of the conference: Alexander Libman, Assistant Professor of International Political Economy at the Frankfurt School Finance & Management. [Source]
Today, Libman is also on staff at HSE [Source]
He is a specialist in “the regional economic integration in the post-Soviet space and the dynamics of the Russian federalism respectively. His research interests include empirical political economics, political economics of multi-level governance and political economics of non-democracies.”
In the neo-con speak regional economic integration in the post-Soviet space – looting;
the dynamics of the Russian federalism – splitting Russia on many different parts, local wars and chaos.
Papers published by Alexander Libman talk about the “criminal nature” of the Government of Russia. Everyone in Russian government is a criminal if you believe Mr. Libman.
Libman’s idea-fix is that the governments in Russia, China and India are criminal, and these countries should be split by regions, to be ruled by the non-criminal Western governments.
Let’s take a brief look at other authors presenting their papers at the June HSE conference:
a. Arturas Rozenas, Assistant Professor of Politics New York University, presents his paper “Persuasion and dissuasion with biased media: Evidence from Russian television in Ukraine”. His previous work published by Wisconsin-Madison University is here [Source]
Look at Rozenas’ speech at the NYU Abu Dhabi Institute debate on Russia-Ukraine relations.According to Rozenas, if you are “Russia’s immediate neighbor, you have two options: confrontation or political/military submission.” In Rozenas’ view, “France and Germany might be feeding Putin with carrots, but the US will provide the sticks.” [Source]
b. Israel Marques. Columbia University; Research Fellow, National Research University. He has been teaching in HSE since 2011.
As a student he was awarded with the scholarship of IREX for his research “The Secularization of the Bosnian Muslim Identity in Tito’s Yugoslavia.” [Source]
IREX is a part of USAID, a Washington non-profit organization, dedicated to promoting pro-Washington pro-NATO journalism in the Eastern Europe, Russia and the former Soviet republics. [Source]
IREX offices were closed in Azerbaijan in 2015 due to their work against government and the propaganda of color revolutions. IREX was called an “anti-Azerbaijani force” financed from abroad. [Source]
USAID has worked in Russia for two decades, spending nearly $3bn (£1.8bn) and was banned and expelled from Russia in 2012.
Israel Marques was one of the hired research monkeys, helping to split up and to destroy Yugoslavia. Now, this extremely dangerous individual lives in Moscow and teaches Russian students how to split and destroy Russia.
We have an agent of IREX (USAID) working in one of Russia’ most important universities for two years giving lectures and writing papers on the Russia’s social policies.
What’s the point in banning the anti-Russia western organizations, if agents of these organizations are openly working in Russia?!
Next spawn to come up is Scott Gehlbach,  from the Department of Political Science of the University of Wisconsin–Madison who is affiliated with both the New Economic School and the Higher School of Economics in Moscow. He is one of the authors of the article in the Washington Post What does Boris Nemtsov’s murder mean for Russia? [Source] The article puts blame for the murder directly on the patriotic fraction of the government.
Another paper of Scott Gehlbach co-authored with Konstantin Sonin. Sonin is a professor of Economics at the Higher School of Economics, who just took it on a run to Chicago “full of fear and cold hatred” by his own admission. This duo fathered the article, Government control of the media in Russia [Source]
Shouldn’t Scott Gehlbach be more qualified to research and write about the government control of the Media in the US?
Let’s take a look who else if on staff in HSE
Marek Dabrowski is on staff at HSE since 2014! [Source]
Marek Dabrowski has been an agent for several foreign organizations that are banned and undesirable in Russia, like Soros International Economic Advisory , Soros Open Society Foundation, USAID and others since 1980s.
Pleas, take a look at his CV posted on HSE website.
Ukraine 1993-1994 (Support to Economic Reform in Ukraine, OSI)
Ukraine 1994-1998 (Soros International Economic Advisory Group, OSI) Ukraine 1998-2001 (Ukraine Macroeconomic Policy Program, USAID)
Ukraine 2002-2003 (Sources of Economic Growth in Ukraine, World Bank)
We all know how successful 25 years of the Soros Economic Reforms have been for Ukraine in bringing the Ukraine economy to its knees. Marek Dabrowski also worked in all of the former Soviet republics after they declared their independence as an economic representative for IMF and Soros.
Judging by his CV, Polish national, Marek Dabrowski looks like a major emissary of the Washington, EU, Soros, and NATO.
I can’t wrap my mind around the fact, that this major figure in pillaging economies of sovereign countries and setting up the looting of the economies of the former Warsaw block countries and the former Soviet republics, works as a professor of economics in Moscow.
Are neo-con liberals preparing a major economic disaster, a diversion in Russia, like they had done in 1990s?
Is Mr. Dabrowski in Moscow working to orchestrate an economic sabotage and collapse of Russian economy? Is he here in HSE to advise the wife of the rector of HSE Elvira Nabiullina, the Head of the Russia’s Central bank, on how to destroy Russia’s monetary system to cause social unrest?
It looks like a War Room of international experts on color revolutions with the real successful Maidan experience has gathered in Moscow this summer.
Just to remind you of what had happened in Russia in the 90s: The Rape of Russia: Testimony of Anne Williamson Before the Committee on Banking and Financial Services of the United States House of Representatives September 21, 1999 [Source]
To continue with the list of the participants of the June HSE conference:
Meet Evgeny Gontmakher, Professor: Faculty of Social Sciences / School of Political Science since 2009. [Source]
His latest article in Financial Times, We Russians need better ideas for life after Putin [Source]
Evgeny Gontmakher is an old Yeltsin’s “loot Russia” team survivor. He was born in Soviet Ukrainian republic. A member of parliament of the Jewish Congress of Russia. His thesis literally is that he makes a comfortable living from studying Russia for 40 years, but he doesn’t know what is Russia. Now, this unknown to him entity is disappearing.
What are his plans for “Russia after Putin?” Russia cutting all the ties with China and its Asian allies Kazakhstan, Iran, Syria. Russia going back into submission to European Union, Germany and the US. Russia’s economy should go back to the 90s model.
He is talking about these neoliberal plans for Russia in his interview to Voice of America on May 11, 2015. Evgeny Gontmakher – On Future of Russian Economy  Евгений Гонтмахер – о будущем российской экономики  and Mobilization-type social policy, Vedomosti. 7 марта 2014 [Source] and also Putin’s Ukraine Policy Accelerating Russia’s ‘Disappearance,’ Gontmakher Says
Paul Goble [Source]  Евгений Гонтмахер: Диагноз: «Россия исчезает»
May 27, 2015, An economist calls for Russia to return to the “European way of development” Экономист призывает Россиию вернуться «в европейское русло развития»
He has decades old connections to Khodorkovsky, a convicted felon, who managed to steal and keep billions of dollars that must be returned to Russian people. Those money were people’s paychecks, scholarships, pensions, healthcare. Now Khodorkovsky uses the people’s money for the relentless and vicious information war on Putin’s government and Russian people. A neo-con Interpreter webzine is one of his anti-Russia projects.
It’s beyond me that people who are vicious enemies of Russia and Russian people like Timothy Frye, Alexander Libman, John Reuter, Israel Marques, Arturas Rozenas, Evgeny Gontmakher, and Marek Dabrowski, can enter Russia, live in Russia, let alone to teach future Russian economists, bankers, political analysts, and business owners.
I’m having some hard time curtailing the list of neo-cons working for HSE. You can pick any member of its staff or a guest speaker and discover a leach in a dark pool of Pentagon and Vanguard Corp. money.
However, here is a small but decisively good piece of news: Konstantin Sonin, a former vice-rector of the Higher School of Economics is leaving Russia for Chicago [Source]
In case you don’t know, Konstantin Sonin, is a Professor of the Faculty of Economics, School of Applied Economics and the Department of Institutional Economics at HSE since 2013 [Source]
Check Sonin’s Curriculum Vita and the list of publications before it’s gone.
One of his articles written with Scott Gehlbach Government Control of the Media
This article is not about BBC, the US government run media giant, and it’s not about CIA censorship of all the Media in the US. No, this article is all dedicated to Putin and Russia. What goes without saying that 3/4 of Media in Russia is written and published by neo-con liberals, located in Germany, France, France, Denmark, Finland, UK and US. It’s also paid by and controlled by the US State Department.
In his online journal, Sonin reports on fear as a dominating sentiment in the neo-con community today.“Fear and cold hate” of Russia.  Nothing new here, but it’s truly refreshing to know these people started feeling fear of consequences for their actions.
RT Interview with Konstantin Sonin
Bad news in connection with Sonin that he “promises” to keep all the professional ties with HSE and to stay as a professor and to keep teaching in HSE.
The previous HSE Rector Sergey Guriev, a former member of Boards of trustees of Sberbank, suddenly fled Russia due to mysterious circumstances in May 2013. [Source]
According to Google Sergey Guriev’s net worth is 3.5 billion USD (2015)
Who are the graduates of HSE?
Who is Mr. Dvorkovich?
June 19, 2012 – Will Deputy Prime Minister Arkady Dvorkovich manage to liberalize the Russian economy? “In 1994, Dvorkovich received his M.A. in Economics from the New Economic School, an old name for HSE.
He then joined the Finance Ministry, working with a team that developed macroeconomic reforms. Eventually, Dvorkovich became the general director and head of research on the team. Dvorkovich also received a Master’s degree from Duke University in the United States.” See Who is Mr. Dvorkovich?
“Dvorkovich calls Yegor Gaidar, the economic reformer of the 1990s, his mentor. His economic credo is “Less state!” Dvorkovich was the chief lobbyist in Russia’s WTO accession campaign, an increase in the retirement age and the rapid privatization of the assets that remain state-owned.” His supporters call him “a stronghold of liberalism.”
Dvorkovich is not an elective figure. So, no one ever voted him into the government.
I don’t understand how the non-elected apparatchiks in Russia’s government can issue law acting as legislative part of the government that should be prerogatives of Russia’s parliament?
“Dvorkovich has enjoyed a high profile as a mouthpiece for Medvedev on economic issues.”
Let’s see how well Dvorkovich has been performing his service to the US as a neo-con economist in Russia. Let’s check on three main tasks of the Russian liberal opposition’s to keep the Russian people down, the Russian government out of economy and politics, and the Western Governments in.
task #1: to keep the Russian people down Dvorkovich proposed increase in the retirement age, beyond what the average life expectancy in Russia;
Task #2: to keep Russian government of the economy, and finance” – “As an aide to Medvedev, Dvorkovich has been closely associated with two of the then-president’s most strident efforts to reduce the state’s presence in the economy: the push to remove Cabinet ministers from the boards of state companies and attempts to expand the scope of privatization.”
task #3: to keep the Western Governments in. See all of the above.
The Composition of the Russia’s new cabinet and Presidential Administration and its significant for the European parliament 2012
“The composition of the new government reflects the new political balance within the Russian leadership, in particular between Vladimir Putin and Dmitry Medvedev. The latter had more room to manoeuvre than in 2008. He was thus able to select his chief of staff, Vladislav Surkov, and appointed his former sherpa, Arkady Dvorkovich, to the position of deputy prime minister in charge of industry (including energy).”
“Since 2008, Arkady Dvorkovich (biography attached) has been an aide to President Medvedev and his sherpa for the G8/G20. This staunch liberal, who on 24 September 2011 had publicly expressed his disappointment after the announcement of Vladimir Putin’s return to the Kremlin, was given oversight over the economy and energy. He could quickly find himself in trouble insofar as the main ministries that he will formally supervise (finance, energy, economic development) are controlled by people who are not in the Medvedev camp.” “His wife, Zumrud Rustamova, is deputy director general of the gold mining company Polimetall.”
She is also on the Board of Directors of PIK Group, PIK Group (LSE: PIK), one of the leading Russian residential developers. As of April 2015, PIK Group has been listed on London Stock exchange and on the New York stock exchange as PINCO emerging market stock
In May 19, 2015 – Pik Group announced announces that it has won a Moscow government tender for multipurpose development on the former industrial territory of VDNH. [Source]
Polimetall and Pik Group are not on the US/EU sanctions lists, even so these sanctions were imposed on companies “connected” to the government of Russia. Apparently, the neo-con liberal fraction in Russia’s government, connected to Medvedev, is not under any restriction from the Western countries.
On June 8th, 2015, a private TV channel REN.TV in its journalistic investigation program Dobrov v Ephire (Dobrov On Air)  (video 21:08) showed a report about a Russian businessman Musa Y. Bazhaev who in October 2014 purchased an Italian resort Forte Village for Euro 180 and 200 million.  Not only the timing of this purchase was very auspicious, Italy just joined the EU to impose the economic sanctions on Russia, but also was the list of guests visiting this new Bazhaev’s property this past winter of 2014-2105. It’s a family of ArkadyDvorkovich and his wife Zumrud Rustamova, and their children and other relatives.
Dobrov on Air team of journalists convinced that paying for two resorts to the extent of half a billion dollars in the midst of the anti-Russian sanctions is the political step and a political statement showing that some captains of the Russian business and members of the Russia’s government are unconcerned with the country’s problems. Russia for them just a place they can very fast and easy make lots of money.
(video 25:50) Bazhaev shows generosity only when it comes to the foreign countries. In Russia, he is acting like a beggar, asking the government to give him 220 billion rubles to develop a nickel mine Norilsk One.
The purchase of real estate properties abroad is nothing but a form of Capital flight from the territory of Russia, says Alexey Mukhin, the Director General of the Centre for Political Information
Dobrov claims that Musa Y. Bazhaev had very good chance to get money from the Russian government that is struggling to feed and defend its people. Why? because Musa Y. Bazhaev is a family friends of Arkady Dvorkovich, (video 26:45) who in turn is in Medvedev’s camp. Interesting enough that these company, Bazhaev, Dvorkovich and Rustamova are not on the EU/US sanctions list and can move freely even in times like these.
Musa Y. Bazhaev gives about half a billion dollars to Italy, that is a part of NATO that is threatening to destroy Russia, after that he goes back to the government of Russia and asking half a billion dollars so he could develop a nickel mine in Norisk to extract profit out of it and to take the money and to spend it someplace else, not in Russia, but to give money made on exploitation of Russian resources to the enemies of Russia. All this with the support of Arkady Dvorkovich and/or Medvedev.
So, is this consolidation of Russia’s neo-con liberal elite in time of adversity that Sergey Karaganov was talking in his interview?
Why is it allowed to go on?
Let them know that the Higher School of Economics (HSE) is hosting a Kill Russia War Room on June 29 – July 1, 2015 with the herd of the Washington paid research monkeys from the banned foreign NGOs backed by the military of the NATO countries, which are currently in confrontation with Russia. [Source]
Russian patriots should have a chance to come to this conference and express their opinion about the relentless attacks on the existence of Russia that these people are conducting. [Source]
Patriotic civil society and people’s outrage is alive and working in Russia
In my Ukraine May 28th SITREP, I posted the information about the Open Library project to host in Saint-Petersburg a meeting between an American journalist Vladimir Pozner and an Ukrainian Parliament member, a neo-con skinhead Mustafa Nayem to “teach Rushka how to fight against Moscow.” Nayem’s performance was canceled.
“On the eve of May 27 the activists of the movement “Antimaydan” appealed to the Governor of St. Petersburg with asking to pay close attention to the visit to the city Nayem. They recalled that Nye was one of the first that “called Ukrainian citizens to the coup d’etat.” [Source]

Russian public organizations are discovering only now, what the neo-can liberals knew all along: the squeaky wheel gets the grease
The Russia’s Parliament Duma should start an investigation into the corruption, and anti-government activities conducting by the HSE and its faculty. Russia’s law enforcements have to investigate all the foreign nationals currently working for HSE in terms of corruption, bribery, dark money, and their connections with the banned Western-backed NGOs and their work in planning and solicitation of the anti-government putsch.

If we to look for a precedent, here is the story of Memorial that poured quadrillion tones of dirt on Russia, Russian history, and Russian people in its 30 years of existence. In connection with the introduction of the law on registration of non-profit organizations that receive foreign funding and leading political activities, the organization “Memorial” was declared a foreign agent. The results of the investigation of the Prosecutor General’s Office in April 2013, it was discovered that “Memorial” is engaged in political activity in Russia, setting a goal, as stated in the charter of the organization, “to influence public opinion in the country”, with this funding coming from the United States.
 
Ukraine
1. US NATO heavy military equipment crosses border enters Ukraine territory [Source]
Oleg Slobodyan, press secretary for the Ukrainian State Border Service, told journalists.
“Currently the US-Ukraine joint military exercises are underway. Within these exercises, the military vehicles and equipment of the units involved entered the Ukrainian territory.”
2. Convention on Human Rights Still Applies in Ukraine – Council of Europe [Spurce]
Ukraine authorities used the war conflict in the country to derogate from certain provisions noted in the European Convention on Human Rights. This will not prevent the European Court of Human Rights from examining applications concerning Ukraine, Council of Europe Secretary General Thorbjorn Jagland claimed.
War on Donbass Novorossia
1. Donetsk children talk about the war on them (Eng. subs)
Anatoly Shary: My best video ever.
2. 11th of June, 2015. Lugansk People’s Republic, Novorossiya.
Киевские силовики за сутки трижды нарушили режим “тишины”
Ukrainian forces have violated the ceasefire regime three times over the past 24 hours, the deputy chief of the LPR people’s militia headquarters Igor Yashchenko told the Lugansk Information Center.
“During the period from 6:00 June 10 to 6:00 June 11, we’ve registered three ceasefire violations by the Ukrainian side. From 16:00 to 16:30, the area of the old bridge across the river Seversky Donets was being shelled from Stanitsa Luganskaya. From 21:50 to 22:10, Kiev forces were firing 82mm mortars on the village of Veselaya Gora and intersection near it from the Schastye thermal power plant. At 21:30, Ukrainian forces shelled the settlement of Donetsky with small arms from the village of Krymskoye. No casualties among the civilian population or the LPR fighters have been registered,” – Igor Yashchenko said.
3. 11th of June, 2015. Donetsk People’s Republic, Novorossiya.
ВСУ за сутки почти 40 раз обстреляли территорию ДНР — Минобороны
Ukrainian forces have shelled the DPR territory 38 times in the last 24 hours, the DPR Defense Ministry spokesperson Eduard Basurin told the Donetsk News Agency.
“Over the past 24 hours, we’ve registered 38 ceasefire violations by the Ukrainian forces. The enemy used artillery again. The fire was opened once from anti-aircraft gun, four times from tank guns, once from anti-tank guided missile. Besides, we’ve recorded one case of artillery fire delivered from Grad multiple rocket launcher system, 29 cases of mortar shelling, and two cases of fire delivered from infantry fighting vehicles. Ukrainian forces fired on Donetsk (Kievsky district, Oktyabrsky settlement, Oktyabrskaya coal mine, the territory of the airport), Gorlovka, Shirokino, Spartak, Shirokaya Balka, Krasniy Partizan, Veseloye, Golmovsky, Krasniy Oktyabr,” – Eduard Basurin said.
4. 370 Donetsk High Schools Graduates receive Gold Medals for their excellence [Source]
6. Two children in Gorlovka that had been reported dead are actually wounded, but alive[Source]
Russia and Beyond…
1. June 16-19, 2015 Russian Defense Ministry will host International Military-Technical Forum. The main Russian Exhibition in the field of defense and security [Source]
According to Sergei Shoigu, General of the Army, Russian Defense Minister: The main purpose of International military-technical “ARMY-2015″ is to create conditions for effective search of innovative research, development and technology in the interests of defense and state security for subsequent introduction into perspective samples of armament and military equipment, as well as the promotion of the efficiency of activity, construction, preparation and use of the Armed Forces, subordinate organizations and enterprises of the Russian defense Ministry, providing their needs in resources, products and services.
Promo information in English here 
Reports and speeches concerning the upcoming exhibition of the Russia’s defense industry are here
Speech of the Chief of artillery and rocket forces of the Land Forces, Major General Michael Matveevsky[Source]
Speech of the Head of the Personnel of the Armed Forces, Major General Michael Smyslov  [Source]
Speech of the Head of Transport Department of the Ministry of Defense Colonel General Igor Lyapin [Source]
Speech of the Commander-in-Chief of the Land Forces, Colonel-General Oleg Salyukov  [Source]
Speech of the Aerospace Defence Forces Commander Lieutenant-General Alexander Golovko  [Source]
Forum “Army-2015” to boost development of prospective armament of the Aerospace Defense Forces [Source]
Speech of the chief of radiation, chemical and biological defense (NBC) of the Russian Armed Forces, Lieutenant General Edward Cherkasov [Source]
Speech of the Main Railroad Troops Directorate Chief Major-General Oleg Kosenkov  [Source]
Speech of the Head of engineering troops in the Armed Forces of the Russian Federation Lieutenant-General Yuri Stavitsky [Source]
Speech of the Commander-in-Chief of the Russian Navy Admiral Viktor Chirkov  [Source]
Speech of Chief of the National Centre for State Defence Control Lieutenant-General Mikhail Mizintsev [Source]
Speech of the Head of the Center for the system of forward-looking military research and development (SFLMRD) of the Russian Ministry of Defense Colonel Presnuhin Vyacheslav[Source]
Speech of the chairman of the Military Scientific Committee of the Russian Armed Forces, Lieutenant General Stanislav Suvorov [Source]
2. Russia’s economy now is between a rock and a hard place, Professor of economics Valentin Katasonov [Source]
Valentin Katasonov, a leading Russian economist, Doctor of Philosophy in Economics, a professor at the Moscow State Institute for International Relations (MGIMO) and well-known Russian author on international finance speaks about the current need for central planning. To fully implement the move toward domestic production and replacement of foreign goods, Russia needs the general economic plan at least for the next three years.
The economic block of Russia’s government is refusing to act, and it’s the largest negative factor in our current situation. The government is refusing to work with the manufacturers. The general plan for development is absent. The government is refusing to give to the manufacturers and agricultural sector any assurance that in case the Western sanctions are lifted, the government will keep protecting the domestic manufacturers. Medvedev said that the ban of the EU products is in place as long as sanctions against Russia are in place. It’s not enough. Without any assurance from the Russia’s government to protect against foreign goods, and without the government investments, the producing blocks of the economy cannot take risk to keep developing.
The Ministry of the economic development is idling and publishing useless papers with important sounding titles. Obama and persons responsible today for the Russia’s economic development and monetary policies are the same people. Obama, Siluanov, and Ulyukaev are religious dogmatists believing in the same failed free market dogmas. We can’t wait until price of oil goes up. It’s moronic.
3. “Test of the resistance” – NATO launches three Großmanöver with 15,000 soldiers in Eastern Europe [Source]
4. “Obama Is Destroying Europe”, “Dragging It Into A Crusade Against Russia” Former French PM, German Banker Admit [Source]
“European corporations will circumvent the sanctions, to create production facilities at the highest efficiency level in Russia, we lose this potential capital stock, which is the basis of our prosperity. Russia wins the capital stock,” at the EU’s expense, even though the sanctions are targeted against Russia. ”
5. White House Admits Economies Of European Allies Crippled By Russian Sanctions. the Russian sanctions will continue until every European country taps out. [Source]
So when the impact of the current iteration of European QE fades to nothing, at least we now know precisely how the status quo will enable round two: boost Russian sanctions so aggressively that Europe skips the triple-dip recession and goes straight into depression.

6. Leaders of high finance make real decisions; G7 ‘hired actors‘[Source]
Germany and other European countries are forced to work against their own interests in order to help big American and British corporations and rich, powerful forces to lay down the law, claims Caleb Maupin, journalist and political analyst.

7. State and Strategy: how big states do their strategic thinking
IRIS Notes May 2015 Oliver de France
“Russia is currently looking to progressively replace the centralized, neo‐Soviet apparatus of strategic research. Today the country has plans to fund and support a strategic research community outside the Russian Ministry of Defense. The main issue with the previous model was that the influence of Russian strategic thinking remained extremely limited outside of the country – the Russian authorities seem to have acknowledged the problem and are looking to remedy it.”
8. Merkel just offered Russia to remove the US and EU by saying that “anti-Russian sanctions will be lifted when their causes are removed”
Well done, old girl, well done… [Source]

9. Trade in Services Agreement [Source]
WikiLeaks releases today 17 secret documents from the ongoing TISA (Trade In Services Agreement) negotiations which cover the United States, the European Union and 23 other countries including Turkey, Mexico, Canada, Australia, Pakistan, Taiwan & Israel — which together comprise two-thirds of global GDP. “Services” now account for nearly 80 per cent of the US and EU economies and even in developing countries like Pakistan account for 53 per cent of the economy. While the proposed Trans-Pacific Partnership (TPP) has become well known in recent months in the United States, the TISA is the larger component of the strategic TPP-TISA-TTIP ‘T-treaty trinity’. All parts of the trinity notably exclude the ‘BRICS’ countries of Brazil, Russia, India, China and South Africa.

10. The Hypocrisy of Russia’s “Liberals” [Source]
11. “Go East, Young Firm”: Chinese Companies Drop New York Listings, Return Home [Source]
It’s almost like somebody in China reads my SITREPs about the Penn State University accusing Chinese students in spying, and about danger for companies of the sovereign countries of having an office in the US. No parents want to see their children arrested and rotting in American jails for “spying” charges. No company wants to be invaded by FBI and destroyed for allegation in “wrongdoing” like FIFA. Whatever their reasons are, tech Chinese companies de-listing from the NY stock exchange and moving out if their US offices. Good move in a right direction.

12. Obama Sidelines Kerry On Ukraine Policy [Source]
13. EU orders Estonia, Poland (the most pro-US countries) to hand over tax ruling data [Source]
14. The citizens of Russia should be the richest people in the world, Glazyev [Video]
Глазьев: Несмотря на все проблемы, Россия самая богатая страна в мире
Основную часть российского богатства составляют природные ресурсы и человеческий потенциал, но производственный капитал находится на низком уровне, отметил экономист
Glazyev: Stagflation that Russia experiences today is the direct result of incompetent macroeconomic policy. In 2014 we should have 6% growth and in 2015 we should have 8% growth. Today Russia uses only 50% of its production capabilities. We have huge human resources and our hidden unemployment in production sector is about 20% and not 5.5% as the official statistic claims. Plus, Russia can use practically unlimited human resources from our Eurasian Economic Union partners. At the start of 2015 we declared free movements of people and goods between Russia, Belorussia, Kazakhstan, Armenia, and Kirgizstan. We have a million of hardworking, educated specialists from Ukraine that just moved to Russia.
Despite of all our problems, Russia today is the richest country in the world per capita.
Our problem that the main portion of the national treasure is divided between natural resources and human capital. Russia has very low level of so called production capital. Russia’s level of productivity, is about four times lower than other developed countries. We have very high energy consumption, which is three times higher than in developed countries. Consequently, we have extremely low use of natural resources. Per unit of natural resources today we get 10 times fewer goods and services than middle-income countries and ten times lower than in advanced technological countries. We could produce more and live times better.
This is all the result of the macroeconomic policies dominating in Russia today.
Our macroeconomic regulations root in 90s “economic shock-therapy” doctrine. This doctrine is based on the Washington Consensus, invented in 70s so the US, EU and Japan could control all other countries. This is a simple formula for very primitive economies.
The basic rules of this dogmatic doctrine: prohibition on issuing sovereign money; Russia is allowed to issue only as much rubles as it has foreign reserves; prohibition on having an independent monetary policy; domestic sources of credit are prohibited, and thereby the national economy is subjugated to external interests. This monetary policy doesn’t allow the development of the country using its domestic resources. The country therefore has to orient itself entirely toward foreign financing and the foreign markets.
This primitive macroeconomic system was set up in Russia after the collapse of the Soviet Union, to dismantle the state ownership, state controls over prices, and any kind of from of central planning. This is an anarchic system, when the state is only allowed to print as much money as its accumulated foreign currency reserves.
Problem is that that this methodology was initially placed as a basic rule for Russia’s Central Bank. 25 years later, Russia’ Central bank still operates following the Washington Consensus doctrine. The damage that Russia have suffered from this macroeconomic policy, estimated today at nearly $2 trillion dollars of capital transferred out of the country.
This is more than the economic losses that the USSR suffered in the World War II.
As a direct result of this policy, Russia’s economy degraded and became primitive, all due to the absence of domestic source of credit, absence of any central planning for the economy, and the reliance only on foreign sources of credit. The West only consumes Russia’s raw materials, money, and specialists. Annually in this uneven exchange, Russia looses about $150 billion. This is just financial looses, without estimation of the losses of technology, knowhow and brains. Russia is still completely enslaved by this Washington Consensus economic doctrine.
This technique is very deeply rooted in the minds of the monetary authorities, supported by international expert community that is manipulated by the international monetary Fund, and it is stimulated by the West. The people in Russia who lead this policy, receive the highest rating in the world table of ranks, which is formed of the Washington financial institutions.
For example, the disaster that befell us with the ruble at the end of last year. It was a disaster because we lost prestige, confidence in the currency and the consequences of the collapse of the ruble will continue to negatively affect the investment climate because of the enormous mistrust both within Russia the ruble and out.
Within just three months we ditched all that accumulated for many years. Russia just convinced everybody that the ruble is a stable currency, began to say that he could become a reserve currency within the Eurasian economic Union. Belarusians have introduced a ruble in the standby the currencies that we trade translated into U.S. dollars quite successfully – and suddenly a collapse of the two times and the failure of our partners to continue to work in rubles. This is a long term negative trend, which will really disturb us economic interests for years to come.
It happened because of the insane formula that the West dictated to Russia’s Central Bank. This formula states that target inflation means refusal to control the course of the national currency. the Central bank wanted to reduce the inflation from 8% to 4%. In a very open economy like Russian, an inflation is dictated by the exchange rate of the ruble. To control the inflation, Russia should control the exchange course of the national currency, the Central Bank had done completely opposite.
Using the incompetence of people who control Russia’s monetary policies, the International Monetary Fund threw this dead cat at us. Paradoxically, announcing that they will drive the inflation down, monetary authorities of Russia let the national currency into floating exchange rate or fluctuating exchange rate.
I note that of all countries the number of such risky policies among the more or less developed countries, we see only in Norway. Nowhere in the world free floating of the national currency is used, because it is a very risky business, especially if you have an open economy. Moreover, our economy was already under the impact of economic sanctions. We were required to return $ 130 billion of loans and interest last year, so much in this one.
External background was very poor and it made a negative impact on the balance of payments in terms of the export of capital in payment of earlier loans, not to mention illegal capital flight.
In this situation, the announcement of the transition to a free floating ruble exchange rate was clearly seen by the financial market as a signal to a sharp drop in rate. This advantage of the speculators. I note that the economic sanctions that the West imposed against us, are concerned only with long-term money. They’re refusing to provide long-term and medium-term loans, while loans 90 days to financial speculation – please, you can borrow without restrictions.
In fact, the Central Bank through its decisions provoked and funnel speculative activity, which sucked in all available funds, including those that the Central Bank has injected into the economy.
In the end, we got such artificially created turbulence in the currency market. Then when monetary authorities raised interest rates, they just cut off completely the financial sector from the real economy. Production was left without loans. in financial market you can earn income up to 100%, while the profitability of the manufacturing industry of 6-7%. Such was decisions of our government and they put our economy in a stagflationary trap.
Why it happened – the answer is very simple. All the scientists of the Academy of Sciences was quite surprised to observe such a policy.
The answer is very simple, but you won’t find it on the pages of the economic debate, because the question of why did this happened has no reasonable explanation. There is one document “Memorandum”, which was developed by the International monetary Fund Mission in Moscow in September of 2014. In this Memorandum IMF just ordered our monetary authorities to do exactly as they did.
Namely, the transition to targeting so-called quoted inflation by abandoning control over the exchange rate, which in itself is internal absurdity, failure of other instruments of monetary regulation and control, raising interest rates to reduce inflation is all in black and white on five pages of “Memorandum” written, that was the basis for the actions of the Central Bank, which brought our economy in a stagflationary trap.
However, I look at the situation optimistically, because we have no objective reason for our economy to continue to falter. Moreover, after the devaluation of the ruble, we saw a revival of the engineering exports, it increased by almost 20%, there is some positive trend here.

I note that the share of Russian investors in the Russian financial market is only 10%. We have all these profits on the destabilization of our economy is allowable to receive foreigners. Therefore, these foreigners so passionately pursued macroeconomic policies that declare to our best macroeconomists in the world of Finance Ministers, heads of the Central Bank, in every way they welcome, encourage.

Countries that refuse to follow the Washington Consensus recommendations are China, Vietnam, South Korea, EU countries, the US and Japan. From all the developing and developed countries only Russia uses Washington Consensus doctrine. In other economic models, like the Chinese, Vietnams, and Korean, the development of the national economies is the driving factor.

We have one year to reconsider the situation. The Americans started this war with the aim to completely eradicate Russia from the face of the earth. We still have a chance to enter new Asian economic sphere of development, We have to get out from under Washington control and find new ways of developing that is beneficial for Russia.

 

at

No comments:

Post a Comment