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Why Do Libertarians Support Putin Given His Catastrophic Corruption?

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Photo Credit: American Conservative Over 100,000 entrepreneurs and small business owners are in prison in Russia for not paying bribes to assorted inspectors or because parties to business disputes bribe police to arrest them on trumped-up charges. Russia’s private sector has very little security in law for its property rights. Almost everybody dragged before any court is found guilty. The consequences are minimal re-investment, low productivity growth, and owners who seek security by taking out maximum cash and, if able, stashing it abroad.

Consequently, Russia depends upon imports for 90 percent of its consumer goods. Its agriculture is still a shambles, with no secure property rights, lousy roads to get products to markets, and younger farm workers fleeing the boredom and poverty of the countryside. Just fly over any Russian city, as I have done, and see how little of the land is cultivated compared to cities in the rest of Europe.

Yet many leading libertarians have been very soft on Putin’s elimination of political freedoms and ruination of his country, excusing Russia because of NATO expansion and Western support for the overthrow of Ukraine’s Moscow-backed Yanukovych government. Some conservatives have even argued that Putin is an ally in supporting traditional “family values” because of his public opposition to homosexuality and gay marriage.

Ron Paul defends Putin, writing that there was no proof that Russian missiles shot down Malaysia’s Flight 17 over Ukraine. His allies argue that criticism or exposure of Putin’s regime merely strengthens the War Party in Washington, helping it to gain more spending and bring about more wars against more nations. They argue that it was NATO expansion and NATO’s attack on Serbia launched by Bill Clinton that ultimately led to the reactions and new aggressiveness of Russia. This is an argument I once appreciated, but it’s not a reason to whitewash today’s Russian dictatorship and incredible corruption. (Read more about why this author believes Libertarians support Putin HERE)

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The Duopoly Just Put Taxpayers on the Hook for Trillions in Oil Derivatives

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bankers-what-now-249By Ellen Brown. The sudden dramatic collapse in the price of oil appears to be an act of geopolitical warfare against Russia. The result could be trillions of dollars in oil derivatives losses; and the FDIC could be liable, following repeal of key portions of the Dodd-Frank Act last weekend. . .

[T]he shocking $50 drop in the price of oil was not due merely to the forces of supply and demand, which are predictable and can be hedged against. According to an article by Larry Elliott in the UK Guardian titled “Stakes Are High as US Plays the Oil Card Against Iran and Russia,” the unanticipated drop was an act of geopolitical warfare administered by the Saudis. . .

If the plan was to break the ruble, it worked. The ruble has dropped by more than 60 percent against the dollar since January. But it came at a cost: not only are U.S. oil producers hurt, but the derivatives banks will get killed if oil prices don’t go back up soon.

At least they would have been killed before the bailout ban was lifted. Now, it seems, that burden could fall on depositors and taxpayers [since the FDIC will now cover derivative losses due to the repeal of parts of Dodd-Frank last weekend]. Did the Obama administration make a deal with the big derivatives banks to save them from Kerry’s clandestine economic warfare at taxpayer expense?

Whatever happened behind closed doors, we the people could again be stuck with the tab. We will continue to be at the mercy of the biggest banks until depository banking is separated from speculative investment banking. Reinstating the Glass-Steagall Act is supported not only by Elizabeth Warren and others on the left but by prominent voices such as David Stockman’s on the right. (Read more from this story HERE)

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Vladimir PutinRussian Economy Shrinking

By Nataliya Vasilyeva. MOSCOW (AP) — The Russian currency extended its losses on Monday after a report showed the economy has started shrinking in annual terms for the first time since 2009 as the country is buffeted by falling oil prices and Western sanctions.

Meanwhile, the government, which has been scrambling to support the ruble and the economy, announced fresh steps to keep the banks afloat.

The ruble has been one of the world’s worst performing currencies this year and was down another 5 percent on Monday, trading at 56 rubles per dollar in early afternoon in Moscow, wiping off some of the gains it made last week.

The fall came as the Economic Development Ministry issued a report showing the economy shrank by 0.5 percent in November compared with a year earlier. The ministry attributed the year-on-year decline in the economy, Russia’s first in five years, to a sharp drop in manufacturing and investment. (Read more from this story HERE)

Russia: NATO is Our Number One Military Threat

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Photo Credit: AP

Photo Credit: AP

Russia identified NATO as the nation’s number one military threat and raised the possibility of a broader use of precision conventional weapons to deter foreign aggression under a new military doctrine signed by President Vladimir Putin on Friday.

NATO flatly denied it is a threat to Russia, and accused Moscow of undermining European security.

The new doctrine, which comes amid tensions over Ukraine, reflected the Kremlin’s readiness to take a stronger posture in response to what it sees as U.S.-led efforts to isolate and weaken Russia.

The paper maintains the provisions of the previous, 2010 edition of the military doctrine regarding the use of nuclear weapons.

It says Russia could employ nuclear weapons in retaliation for the use of nuclear or other weapons of mass destruction against the country or its allies, and also in the case of aggression involving conventional weapons that “threatens the very existence” of the Russian state. (Read more from this story HERE)

Russia, 4-ex-Soviet Nations Finalize New Alliance

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Photo Credit: AP

Photo Credit: AP

MOSCOW — Russia and four other ex-Soviet nations on Tuesday completed the creation of a new economic alliance intended to bolster their integration, but the ambitious grouping immediately showed signs of fracture as the leader of Belarus sharply criticized Moscow.

The Eurasian Economic Union, which includes Russia, Belarus, Kazakhstan, Armenia and Kyrgyzstan, comes to existence on Jan. 1. In addition to free trade, it’s to coordinate the members’ financial systems and regulate their industrial and agricultural policies along with labor markets and transportation networks.

Russia had tried to encourage Ukraine to join, but its former pro-Moscow president was ousted in February following months of protests. Russia then annexed Ukraine’s Black Sea Crimean Peninsula, and a pro-Russia mutiny has engulfed eastern Ukraine.

Russian President Vladimir Putin said that the new union will have a combined economic output of $4.5 trillion and bring together 170 million people.

Read more from this story HERE.

Scenes from Putin’s Economic Meltdown

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photo credit: Mitya Aleshkovsky

photo credit: Mitya Aleshkovsky

Get the hot deals while they last! Whatever’s on your holiday shopping list—buy now, it may never be this cheap again! In a single day this past week, the ruble exchange rate dropped from 59 to 80 to the dollar, further eroding confidence in the Russian economy and ensuring a deep recession next year—but also briefly turning Moscow into the shopping capital of the world.

Although this past week’s currency crisis marked the worst fall for the ruble since Russia defaulted on its debt in 1998, no one was waiting in bread lines or starting a run on the bank. Instead, anyone with any cash at all went on a buying spree. Long lines snaked through Ikea branches around Moscow into the early hours of Wednesday morning as people picked up furniture, bedding and other household goods at what had suddenly become bargain-basement prices. Crowds of eager buyers emptied shelves of computer monitors and snapped up flat-screen televisions at consumer electronics chains.

People were purchasing refrigerators, washing machines, cameras—anything that was less likely to lose its value as fast as the plummeting ruble. Cars in some dealerships were being sold at 30 percent to 50 percent above the recommended retail price, yet “people run and bring their last money,” one social network user wrote.

“Yesterday the line for the cash register was to the other end of the hall,” Ravil Daizrakhmanov, an employee of the consumer electronics store M.video, said Wednesday. “They were buying very expensive tech products.”

The ruble has lost over half its value this year as falling oil prices and Western sanctions over the Ukraine crisis hit Russia’s energy-dependent economy. But a drop of 10 percent on Monday and another 10 percent on what has come to be known as “Black Tuesday” further shook consumers, undermined investor confidence and revealed divisions among the country’s elite on how to react. Nonetheless, Russians’ approval for President Vladimir Putin has remained sky-high.

Read more from this story HERE.

Russian Bear Back on the Prowl: Is NATO Ready?

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Photo Credit: CNN

Photo Credit: CNN

BRUSSELS AND STOCKHOLM — A famous 1984 Ronald Reagan presidential campaign commercial warned voters that “there is a bear in the woods.”

It was a reminder that the Soviet Union was a dangerous adversary and that America needed a strong military to oppose the Russian “bear.”

In 2014, there is a bear in the woods again. But this time, NATO and Western Europe seem unprepared.

After the fall of the Soviet Union, Western Europe began to disarm. Now, it’s scrambling to rearm.

When a suspected Russian sub was found lurking in Swedish waters in October, Sweden, a NATO “partner,” was unable to find it, perhaps because it scrapped its anti-submarine helicopters.

Read more from this story HERE.

German Fighter Jets Based in Estonia Intercept Seven Russian Jets This Week

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Photo Credit: Eurofighter – Geoffrey Lee, Planefocus LtdAccording to the Latvian military, on Oct. 28, the German Air Force Eurofighter jets on QRA (Quick Reaction Alert) at Amari, Estonia, to provide NATO Baltic Air Policing were scrambled to intercept seven Russian Air Force planes flying in international airspace over the Baltic Sea.

The German interceptors identified the Russian planes as a large package, made of attack planes and escort, which included 2x MiG-31 Foxhound, 2x Su-34 Fullback, 1x Su-27 Flanker and 2x Su-24 Fencer jets.

Read more from this story HERE.

In Emotional Speech, Putin Says Russia Will Not Tolerate U.S. Domination

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Photo Credit: AP / RIA-Novosti, Mikhail Klimentyev, Presidential Press ServicePresident Vladimir Putin of Russia said Friday that the world is becoming an increasingly dangerous place because of U.S. attempts to enforce its will on other countries and that his nation will not comply.

In an emotional speech before international political experts, Putin unleashed scathing criticism of the United States for what he called its disregard of international law and unilateral use of force.

If the United State fails to abandon its “desire of eternal domination,” then “hopes for peaceful and stable development will be illusory, and today’s upheavals will herald the collapse of global world order,” Putin said during a meeting that lasted about three hours in the Black Sea resort of Sochi.

His voice strained with anger, Putin accused the U.S. and its allies of trying to “tailor the world exclusively to their needs” since the end of the Cold War, using economic pressure and military force and often supporting extremist groups to achieve their goals.

He cited the wars in Iraq, Libya and Syria as examples of flawed moves that have led to chaos and left Washington and its allies “fighting against the results of their own policy.”

Read more from this story HERE.

U.S., Allies Scramble Jets Almost Daily to Repel Russian Incursions

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Photo Credit: APRussian military provocations have increased so much over the seven months since Moscow annexed Crimea from Ukraine that Washington and its allies are scrambling defense assets on a nearly daily basis in response to air, sea and land incursions by Vladimir Putin’s forces.

Not only is Moscow continuing to foment unrest in Eastern Ukraine, U.S. officials and regional security experts say Russian fighter jets are testing U.S. reaction times over Alaska and Japan’s ability to scramble planes over its northern islands — all while haunting Sweden’s navy and antagonizing Estonia’s tiny national security force.

The White House months ago leveled economic sanctions on several Russian businesses and political players, and recent weeks have seen President Obama intensify his rhetoric toward Moscow. But many in Washington’s national security community say the response is simply not firm enough and that, as a result, Mr. Putin actually feels emboldened to push the envelope — Cold War-style.

“What’s going on is a radical escalation of aggressive Russian muscle flexing and posturing designed to demonstrate that Russia is no longer a defeated power of the Cold War era,” says Ariel Cohen, who heads the Center for Energy, National Resources and Geopolitics at the Institute for the Analysis of Global Security in Washington.

Read more from this story HERE.

Russia Prepares Militarization of Arctic

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Photo Credit: CC/ NOAARussia has begun a large-scale militarization of the Arctic Ocean region, with a military command structure planned by 2017.

It comes after recent discoveries of oil and natural gas reserves under the ocean floor, and the possibility a potential Northern Sea Route — an alternative to the Suez Canal — could soon be established as global climate change causes melting of Arctic ice.

Former Soviet bases are being reactivated, a 6,000-soldier permanent military force will be established in the northwest Russia’s Murmansk region, and radar and guidance systems are planned in the area, the Russian news agency RIA Novosti reported.

Col. Oleg Salyukov said, “For the defense of national interests in the Arctic, a multiservice task force will be formed. A motorized rifle arctic brigade is now being formed in the Murmansk region. The second arctic brigade will be formed in 2016 and will be stationed in the Yamal-Nenets autonomous region,” a reference to the Arctic Circle area east of the Ural Mountains, RIA Novosti reported earlier this month.

Read more from this story HERE.