Authored by Tom Luongo via Gold, Goats, ‘n Guns blog,
Russia is done with the West. The divorce is nearly complete. In the past few days we’ve heard from all major Russian leaders the same thing, “The West will play by our rules now.”
You can decide for yourselves whether Russia is writing checks they can’t cash, but in the words of Foreign Minister Sergei Lavrov telling the BBC bluntly, “We do not care about the eyes of the West.” Lavrov has always been the soul of politeness and discretion when dealing with European media.
His open hostility towards his BBC interviewer was not only palpable, it was hard to argue with. He followed that up with:
“I don’t think there’s even room for maneuver left anymore,” Lavrov replied.
“Because both [Prime Minister Boris] Johnson and [Foreign Secretary Liz] Truss say publicly: ’We must defeat Russia, we must bring Russia to its knees. Go on, then, do it.”
Russia’s leadership never talks in such openly blunt terms. It’s almost like Lavrov was channeling comedian Dennis Miller who used to say, “Feeling froggy, take that leap.”
See where it gets you.
Russia knows it has the West on the ropes. We need what they produce and now they are determined to set the rules on who gets them and for what price. It knows that European leaders are puppets with Klaus Schwab’s hand up their asses.
And it knows Davos has zero leverage over Russia’s actions from here on out.
Which brings me to the statements linked above by Gazprom CEO Alexei Miller, speaking at a panel at the St. Petersburg Economic Investment Forum (SPEIF) who just put the situation in the starkest terms there is.
“The game of nominal value of money is over, as this system does not allow to control the supply of resources. …Our product, our rules. We don’t play by the rules we didn’t create.”
Miller’s statement should be thought of as a statement of principle across all theatres of operation for Russia. This doesn’t just apply to natural gas or oil. This is everything, all of Russia’s dealings with the West from here on out will be on its terms not the West’s.
This is clearly the biggest geopolitical middle finger in the post WWII period.
Miller is clearly laying out the rules for a new, commodity-centric monetary system, one based on what Credit Suisse’s Zoltan Poszar called ‘outside money’ — commodities, gold, even bitcoin — rather than the West’s egregious use of ‘inside money’ — debt-based fiat and credit — to perpetuate old colonialist behavior well past its use-by date.
I laid out the basic problem in an article from March after Russia soft-pegged the ruble to gold.
Today’s “Inside Money” standard, known colloquially as the Dollar Reserve standard, is actually what I like to call “Milton Friedman’s Nightmare.” It is nothing more than a system of competitively devalued and inflated debt-based scrips running around drinking each other’s milkshakes until everyone’s glass is empty.
Miller is definitely a glass full kinda guy now.
These comments came after Gazprom began cutting gas flows to Europe through the Nordstream 1 pipeline using the cover story of repaired gas turbines trapped in fascist Canada which couldn’t be shipped back to Siemens because of sanctions.
Now Germany and Canada are trying to figure out how to circumvent the sanctions to get these turbines back.
At the same time Miller pledged more gas to China (up 67% yoy through May) because Russia is interested in energy stability for its friends, while its enemies can starve.
Reuters is reporting that “Russia’s Gazprom increased gas supplies to China by 67% in the first five months of this year, the company’s CEO Alexei Miller said on Thursday.”
It was also on Wednesday that Russian President Vladimir Putin and Chinese President Xi Jinping held their second phone call since the Ukraine war began. Xi told Putin that China is “willing to continue to offer mutual support (to Russia) on issues concerning core interests and major concerns such as sovereignty and security,” as quoted in state broadcaster CCTV.
The arrogance of EU commissars never ceases to amaze me. These people all but declare war on Russia and then act shocked (Shocked, I say!) that Russia then treats them like that.
On the same day that four members of the EU Commission — France, Italy, Germany and Romania — approve fast-tracking Ukraine’s membership application, France’s Emmanuel Macron urges Ukrainian President Volodymyr Zelenskyy to go to the bargaining table with Russia.
Even if Zelenskyy were to make those overtures to Russia, given his public statements on what his terms are, there would be absolutely zero chance that Russia would agree to show up for talks.
At this point I see nothing more than Russia continuing to grind out the Ukrainian army, taking what territory they want and then shepherding through local elections by the conquered territory to either become independent states or part of Russia.
It’s likely the latter at this point since Russia is now issuing Russian passports in regions they’ve taken from Ukraine, which the EU, of course, will refuse to honor until no one cares what they think anymore.
The rules are changing rapidly. Looking ahead there is a real danger that what Russia has set in motion leads to something no one wants to contemplate. Of course the West helped create this situation by forcing Putin’s hand to invade Ukraine, so who’s to blame about where this all leads to may, ultimately, be an irrelevant point.
Let’s hope the noises coming from the West about the sanctions having gone too far and the chest-beating of the worst US and British neocons is no longer being taken seriously by anyone with their fingers anywhere near the launch codes.
If that’s the case than these new rules will be grudgingly accepted only after a lot of borders have been redrawn, new alliances formed and a different world order established.
This morning at the President Putin declared the old world order dead. He finished his speech where he detailed how the West was committing suicide to suit the wishes of The Davos Crowd with the following definitive statement:
“Russia is entering the coming era as a powerful sovereign country. We will definitely use the enormous new opportunities that time opens up for us. And we will become even stronger.”
Putin is correct here. Russia is getting stronger by the day. The West took their best shot at destroying Russia and missed the mark. He clearly identified the real culprits for Europe’s and the US’s problems, subservience to an oligarch class who feel entitled to rule the world.
When the war started I wrote about what I thought Putin’s intentions were. Then it was speculation:
Russia held all the cards in the negotiations over Ukraine and we recklessly pursued a policy of insults and amateurish propaganda, refusing to believe Russia wouldn’t make her final stand.
By putting boots on the ground, planes in the air and missiles up the ass of every Ukrainian military installation across the country, Russia turned the ‘might makes right’ argument of the US and Europe on its head.
The game has changed because the rules have changed. It’s no longer a game of rhetorical chicken and virtue signaling.
Today it is fact. When Putin made his move on Ukraine the ultimate goal was the end of Russia treating the West as an equal and leading the Global South out of what he has called “vassalage.” The reason Putin is hated is because he realizes there are two types of countries, “sovereigns” and “vassals.”
It’s been his life’s work to make Russia into a ‘sovereign’ state free from the West.
From Russia’s perspective their military operation in Ukraine was their Declaration of Independence from the old ‘rules-based order’ of the post-WWII era. Justified or not, we are now in a new age.
The question is now, how many will survive into it.
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This seems completely accurate. Luongo has some pretty good insights, but I’m really skeptical when it comes to his “brave Federal Reserve saving us from Davos” position. I guess we’ll know soon enough. But in terms of the West vs Russia, I think he’s nailed it. What’s surprising is the lack of any mention of Putin’s acknowledged prowess in judo. Biden and his ilk are flat on their backs looking at the sky and wondering what the hell just happened.
It’s not the brave Fed idea at all. Just the enemy of my enemy. How do I know? Luongo answered me directly on Twitter.
I asked… “I can still loathe both entities, right?”
Luongo: Of course, but cheer the Fed on to break these ugly, feckless Eurocratic commies… then we can get back to hating the Fed. Order of operations matter. 🙂
Isn’t he forgetting the WEF enemy? (Those are not just feckless Eurocratic commies.)
The WEF can’t force anyone to join, or even participate. Fuck them, let’s get our own house in order.
https://www.weforum.org/press/2021/10/russia-joins-centre-for-the-fourth-industrial-revolution-network/
That proves it!
Putin is a plant, a traitor for the globalists!!
How in the fuck do you imagine that the Fed can break anything except the U.S. economy? Admittedly they’ve had help from their masters, but they’ve likely succeeded in that task.
What are they doing (or what did they do) with the gold FDR stole from individual Americans? I believe it’s been gone for 20 years or so. They leased it out to their favorite big banks, who sold it and invested the proceeds in derivatives. So it’s gone, the question remaining, who did the favored big banks sell it to?
‘Twas the European Central Bank, I believe, that really got ‘negative interest rates’ off the ground.
Between the USA’s Fed rise in rates, and their own stupid sanctions policy, European economies look set to suffer, big time, and soon. It is all a scam, of course….
Okayyy… and who exactly led the ECB down the primrose path?
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How about this? The foolhardy Fed will actually completely destroy the “capitalist” economy this time around.. At this point, there is nothing they can do (including nothing) that will have a good result. They’ve screwed the pooch for far too long. And they knew they were doing it.
Who gives a crap if Vlady is a black belt? Are you for real?
Simply speculating, Russia has more of a command economy than we do, at least for now. Over any sort of significant time span, free economies produce more wealth, and wealth, as you know, is power. Of course no totally free economy ever existed alongside government, but, more free means more wealth.
Biden and his handlers know exactly what they want to accomplish. What they have no idea of is what will happen then.
Yeah, I’m for real. I’m not sure what your basis is for believing Russia has more of a command economy. You think the free market gave us these fuel prices and this inflation? Seriously? Russia is biggest provider of grain and energy in the modern world and you think it came from a command economy? Not sure what you’re smoking, but you should give it up.
Admittedly, I do believe Russia would be better off not emulating the censorship, civilian disarmament, and regulatory overreach of our so-called “leadership”. But it was heartening to see Vlad talking about deregulating and letting markets do what they’re supposed to do. His end goal is what we used to be while ours is the trash heap of history.
Russia better not push it too far or it will force us to unleash our secret weapon combat brigades into Ukraine consisting of transgenders with Down’s Syndrome. And we’ll dial up the propaganda and mean words to 11. Put front and center even more petite European women to issue warnings and threats. Putin better watch it or we’ll call him names and make him cry.
The two Knights of Ni do seem to resemble Biden and Harris.
You forgot, “Fart in his general direction”.
And, if things in Europe get really desperate, our side still has Hans Brix on the bench. That man can get really, really cross.
Few understand the currency wars that are run by the Central Banksters, and their members, the big banks who live by trading, mostly now, and no longer just banks.
*DEBT* based fiat currency, paper with ink on it, now computer generated by the FED. GOOD review.
https://goldswitzerland.com/the-death-of-capitalism/
Putin’s biggest mistake IMO is the half measures approach.
Western sanctions? Fine all trade with the West stops, now and entirely.
Europe would have caved so fast the Americans would not have had time to threaten them not to.
No.
Sometimes half measures are better.
This give Putin moral high ground.
He didn’t ‘shut down’ Europe’s economy.
When the pivot comes, he can always say he didn’t leave them in the lurch.
Meanwhile, continue allowing them to boost the ruble.
Stoppages and slowdowns all can be blamed on the sanctions the EU signed on with.
It’s the slow, grinding way of the Rus.
Plus, as I’ve said repeatedly before here, the slow grinding way is the best one to drive psychopaths mad.
10,000 artillery shells per day like a roto-tiller grinding up a little more of Ukraine every day. The Russian kids can do artillery survey with paper and a pencil. I bet ours can’t for the last 30 years.
I’ve read the Rooskies are dropping 50,000 shells a day.
It’s a lot for sure. I wonder if we got into it with them if we could deliver that kind of firepower? I have a bad feeling in that regard. We probably have to use treehugger ammo now that has been lightened so the girlies can have the opportunity to be red legs now too. Be all that you can be.
Hell, they can’t make change at the cash register.
Exactly… Europe/Germany is probably the biggest prize for Russia’s future development.
The last thing they want to do is drive Europe even deeper into the embrace of Uncle Shmuel.
Putin is smart enough to know that you need to find new customers before giving the old ones the boot. It takes infrastructure to move his commodities. Pipelines, cargo ships and ports do not build themselves.
Lithuania has upped the ante. They are blocking land access to Kaliningrad. As yet, there is no Russian response.
Lithuania is a small country. I’m not sure how long their firewood supply will last this winter.
The Poles and Finns have plenty of firewood. Energy independence!
Please don’t believe the Lithuanians are acting on their own. Pretty sure FJB, or whoever controls him, is calling the shots.
Lithuania wouldn’t even be a country if they didn’t have so much lithium.
You know we’re circling the bowl when we have no statesmen like Lavrov.
The man is epic.
Do NOT be swallowing or eating anything when watching this 30 second clip of Lavrov. You were warned…
Foreign Minister Lavrov’s unassailable intellect, command of language plus that rich baritone seals the impression that this gentleman sets the standard for a world-class diplomat of Realpolitik.
The Russians are so lucky to have such a man represent their nation on the world stage.
On the other hand; the p*$$ies of the USSA’s foreign service leadership astounds by their near total incompetence.
No way I’m going to listen to 6+ minutes of this a-hole.
As usual Lavrov says something with more substance in 30 seconds, then our clown says in 6 minutes.
Lavrov’s steady performance reminds me of why Bismarck’s exit was such a loss in late 19th century Germany. Instead, the Reich got the policies of an insecure, vacillating Kaiser Bill.
Lavrov is Longshanks blinken is the gentle son and sullivan is his expert in military tactics and strategy So who would you follow into battle?
OK. When do they throw Sullivan out the window and can I watch?
As soon as the EU and US take Ukraine, China will take Taiwan, Japan and South Korea. Within weeks they will have Australia and New Zealand. Then the blathering idiots on Pennsylvanie Avenue will start launching nukes in all directions. Budigga, budigga, budigga That’s all, Folks!
Robert (QSLV)
It will not be so easy for China to take Taiwan. Their invasion troops will have to cross the Taiwan Strait and to do that will have to mass at the various ports, most of which are in range for Taiwan’s missiles. Japan is even a bigger jump across the water. S. Korea has a land bridge so will be much easier to take.