Prediction

FULL ARTICLE From the way the world is going, the region where a cataclysmic event may happen is in the Middle East. There are too many sides fighting for power and dominance of the region, and each is pushing the envelope further and further, currently testing the other sides’ patience and diplomatic ability.

The world today does not want to see war, necessarily. However, the veterans of World War II are dying out. They are the ones that have seen how devastating and brutal a world war can be, and how even the most civilized countries are ready to indiscriminately kill civilians and demolish whole cities in order to gain a simple ability to sell something that is located in a different land.

Commerce is the name of the game, and those that have the most resources have the best commercial ability. Commerce is power and leverage. It is control of whole economies. The United States has been very discreet about imperial aspirations. The basics of empire expansion are control of resources for a purpose of selling them. Not everyone has the power to expand in such a manner, and most take the old-school route — that is, guns blazing and bombs flying, with tanks sweeping in and destruction in the armies’ path.

The most important resource allocation in the world right now is located in the Middle East. Also, the biggest rivalries are in the Middle East. The interesting thing is that it was Europe and the United States that created the reason for there to be conflict in this area. They sparked old rivalries anew in the Middle East by creating Israel as a state. It was a gesture of good will from the Allies and the USSR. However, dislocating a large portion of people and telling them that their rivals are now the owners of the soil is bound to get one side pissed off.

And guess who that side is: the whole Arab world. Now, I am not against the State of Israel, but it is the reason for instability in the Middle East today. With European and mainly America’s backing and support, Israel was able to muster up one of the…FULL ARTICLE

Washington’s Ambitions in Crimea

FULL ARTICLE AT RUSSIATODAY.COM

Crimea is the current target of Washington’s campaign in Ukraine. Overall, the United States is after lucrative business opportunities in Ukraine, aside from becoming a bigger thorn in Russia’s side. A recent announcement by the U.S. Department of State stating that U.S. may open a diplomatic post in Simferopol in Crimea is another step toward escalation of tensions between Washington and Moscow over Ukraine.
 
Washington’s goals are fairly simple – business opportunities galore coupled with putting more pressure on Russia. Most importantly, if U.S. influence in Ukraine grows, it will be able to keep Russian gas companies in check by becoming the direct negotiator representing Ukraine on the issues regarding gas. In addition, it will be able to play its role in the politics of Europe regarding gas, thus increasing pressure on Russia.

Ukraine’s president is already a Washington supporter. Yushchenko’s …FULL ARTICLE AT RUSSIATODAY.COM

America Owns Georgia

Full article can be viewed on RussiaToday site and I would appreciate any comments to be made on this page.

Washington is holding on to everything it has in Georgia, and for a reason. It needs a platform of allies surrounding Russia, which is nothing new. In addition, the fact that has purposefully been overlooked in the mainstream media is that the U.S. is more interested in the economy of Georgia, which will ensure their alliance. The system that America uses to keep hold of Georgia and its President is an elaborate scheme that will ensure political cooperation of Georgia and big profits for U.S. companies.

Making the Rich Even Richer

United States’ “private” companies have long been working in favor of their government abroad. Their actions are commendable as they show patriotism and a belief in both the capitalist system and the American way of life. Nevertheless, working in favor of your country, more often than not, means making citizens of a country worse off than before the investments came into that country’s economy.

The system is fairly simple – bring in U.S. companies to build up energy production, infrastructure, and re-arm the military. The financing of the projects is done through loans made to Tbilisi by the World Bank or similar financial institutions. The loans are given in such large amounts that Georgia will most likely default in the near future. Defaulting will in turn mean that the U.S. will have a firm hold on Georgia’s politics and its system of government as a whole.

The projects that the loans will be issued for will make the rich that own the power plants, dams, and other industrial investments richer. These are the same individuals that sit in the Georgian parliament and run the country. The people, on the other hand, whose land is used for the projects and whose labor is used to make the whole industry work, will be getting a below-acceptable wage and most will likely be out of work as a whole.

Reports indicate that in Georgia’s capital, Tbilisi, the unemployment rate is close to 30%. In 1991, after gaining independence, Georgia reported a 17% unemployment rate. Today, although Georgia reports economic growth and higher per-capita income, people are actually worse off now than before America took an interest in the small Caucasus nation.

It is true that Georgia is growing economically, producing more power, and that more industries are working. However, most of the income earned from the industries goes to paying off the huge loans taken out for the projects. In addition, the wealth of the rich has grown, which produces a higher statistic for the country’s economy. It’s a case of simple math – the more overall wealth divided by the approximately the same number of people in the country produces a higher per-capita statistic.

Georgia Owes America

The people in the Georgian government owe their increase in wealth completely to America. If the U.S. had not offered to help build up the country and lend them the money, Georgia would’ve been struggling just as much today as it had in the 1990s. What does this mean for Washington? It means that they can utilize Georgia’s military, UN votes, WTO membership, and many other tools of politics in their favor.

Tbilisi owes Washington for setting up the Rose Revolution. It is a simple fact that no one in Georgia had the money to set up such a well-funded and well organized action. Not too surprising that in 1999, Georgia’s GDP grew at 3%. The following year, with the introduction of new investors from the West, their GDP grew at 2%, 4.5%, and 5% in 2000, 2001, and 2002 respectively. Right after the Rose Revolution, the GDP growth nearly doubled in 2003 to 8.3%.

In addition to investing in the Georgian political and economic welfare, America and a row of its allies invested heavily in rearming the Georgian military. It was a necessary measure in ensuring that the Georgian army is under their control. If Georgia would side with Russia once again, the project of reequipping the military again would be a costly affair. It is a headache which Tbilisi is not willing to go through again in the near future.

What’s Going to Happen Next?

America has a firm hold on Georgia. Tbilisi is bound by the “friendly” gesture of the Western states to be their allies and to side with America on its foreign policy. Georgia has already become a firm base for the American military. In case of an armed conflict with Russia, Georgia will provide a buffer zone that will be able to hold out for the necessary time needed to bring U.S. troops to the region.

Economically, it benefits the U.S. industries and the few that hold the wealth of Georgia. The U.S. and European companies reap good profits off the projects in the region. On the flip side, the Georgian elite get their share of income that keeps them out of meddling with U.S. interests. The platform has been prepared in case of a potential threat from the Russian Bear.

U.S. Debt in Chinese Coffers

Full article can be viewed on RussiaToday site and I would appreciate any comments to be made on this page.

A Bloomberg report recently stated that China has become the biggest U.S. treasuries holder, surpassing Japan. China holds $585 billion worth of U.S. treasuries, compared to Japan holding $573.2 billion.

Underneath the market transactions and commercial trading, there is a reason for Beijing’s interest in holding U.S. Treasuries and financing U.S. debt during today’s economic crisis. Think of it in simple terms: the U.S. is now in the pocket of China. Beijing’s willingness to help America finance its debt is simply a way of gaining political leverage.

China’s Leverage Over America

Tibet and Taiwan have long been sticking points between Washington and Beijing. Nevertheless, Americans have not spoken out against China’s lack of personal or political freedoms, nor has Washington expressed concern over China’s policies. It is very simple – America is depending more and more on Chinese investments, which gives the Chinese leverage over Washington in case the latter decides to criticize Beijing over its policies regarding Taiwan or Tibet, or if the White House meddles in China’s internal affairs.

Let’s think back to Economics 101:

GDP = Consumer Expenditure + Investments + Government Spending + Net Exports.

The Chinese imports into America in 2007, according to the U.S.-China Business Council, totaled $321.5 billion. U.S. exports to China (primarily specialized high-tech equipment and goods) have totaled $65.2 billion. This creates a negative balance on the U.S. side of the equation of -$256.3 billion.

Although the exports and imports part of the GDP equation is fairly small (approximately 5-6%), the Chinese stake in the government variable is double its investment in the net exports sector. The total U.S. balance in the net exports sector for 2007 was -$700.258 billion, which is about 37% of the U.S. trade balance.

Nevertheless, the goods that are imported from China for $1, for example, are sold for triple that value in the United States. This gives China a stake in the Consumer Expenditure part of the GDP. The major consumer products (clothing, electronics, etc) are a crucial part of U.S. retail business, in which the Chinese manufacturers dominate.

In addition, China’s businessmen have invested in American companies, holding stocks and corporate bonds that are essential to the big corporations’ survival. This gives Beijing power over the investment side of the U.S. economy.

Chinese control over such a large chunk of the U.S. economy gives Beijing a lot of power over the U.S. It is no wonder why America is not active in its criticism of China’s violation of the human rights their system of government.

Why Does This Matter?

The importance of the Chinese financing the U.S. debt is that Beijing can pressure Washington to stand by and allow Beijing to continue on its course of human rights violations and authoritarian control over the population.

In addition to this, the Chinese can use their economic influence to strong-arm America on key matters, such as allowing more Chinese companies to gain a share in the U.S. market, keeping the U.S. military from meddling in Taiwan and Tibet – in short, letting China do what it wants without criticism or repercussions.

The United States has been doing similar operations in South America, Nigeria, and many nations in Southeast-Asia. Now, however, China is using the same tactics to take advantage of the current economic crisis. The advantage is the leverage that they gain in the political arena will allow them more freedom to do what they want and to expand as an emerging power.