No, Russia is not going to disconnect itself from the global Internet
Please interpet it well. It is not something I state, it is the English translation I make of the comment in that tweet.
No, Russia is not going to disconnect itself from the global Internet
The American Empire self-destructs. But nobody thought that it would happen this fast
23398 ViewsMarch 07, 2022 69 Comments
by Michael Hudson posted by permission
Empires often follow the course of a Greek tragedy, bringing about precisely the fate that they sought to avoid. That certainly is the case with the American Empire as it dismantles itself in not-so-slow motion.
The basic assumption of economic and diplomatic forecasting is that every country will act in its own self-interest. Such reasoning is of no help in today’s world. Observers across the political spectrum are using phrases like “shooting themselves in their own foot” to describe U.S. diplomatic confrontation with Russia and allies alike. But nobody thought that The American Empire would self-destruct this fast.
For more than a generation the most prominent U.S. diplomats have warned about what they thought would represent the ultimate external threat: an alliance of Russia and China dominating Eurasia. America’s economic sanctions and military confrontation have driven these two countries together, and are driving other countries into their emerging Eurasian orbit.
American economic and financial power was expected to avert this fate. During the half-century since the United States went off gold in 1971, the world’s central banks have operated on the Dollar Standard, holding their international monetary reserves in the form of U.S. Treasury securities, U.S. bank deposits and U.S. stocks and bonds. The resulting Treasury-bill Standard has enabled America to finance its foreign military spending and investment takeover of other countries simply by creating dollar IOUs. U.S. balance-of-payments deficits end up in the central banks of payments-surplus countries as their reserves, while Global South debtors need dollars to pay their bondholders and conduct their foreign trade.
This monetary privilege – dollar seignorage – has enabled U.S. diplomacy to impose neoliberal policies on the rest of the world, without having to use much military force of its own except to grab Near Eastern oil.
The recent escalation of U.S. sanctions blocking Europe, Asia and other countries from trade and investment with Russia, Iran and China has imposed enormous opportunity costs – the cost of lost opportunities – on U.S. allies. And the recent confiscation of the gold and foreign reserves of Venezuela, Afghanistan and now Russia,[1] along with the targeted grabbing of bank accounts of wealthy foreigners (hoping to win their hearts and minds, enticed by the hope for the return of their sequestered accounts), has ended the idea that dollar holdings – or now also assets in sterling and euro NATO satellites of the dollar – are a safe investment haven when world economic conditions become shaky.
So I am somewhat chagrined as I watch the speed at which this U.S.-centered financialized system has de-dollarized over the span of just a year or two. The basic theme of my Super Imperialism has been how, for the past fifty years, the U.S. Treasury-bill standard has channeled foreign savings to U.S. financial markets and banks, giving Dollar Diplomacy a free ride. I thought that de-dollarization would be led by China and Russia moving to take control of their economies to avoid the kind of financial polarization that is imposing austerity on the United States.[2] But U.S. officials are forcing Russia, China and other nations not locked into the U.S. orbit to see the writing on the wall and overcome whatever hesitancy they had to de-dollarize.
I had expected that the end of the dollarized imperial economy would come about by other countries breaking away. But that is not what has happened. U.S. diplomats themselves have chosen to end international dollarization, while helping Russia build up its own means of self-reliant agricultural and industrial production. This global fracture process actually has been going on for some years, starting with the sanctions blocking America’s NATO allies and other economic satellites from trading with Russia. For Russia, these sanctions had the same effect that protective tariffs would have had.
Russia had remained too enthralled by free-market neoliberal ideology to take steps to protect its own agriculture and industry. The United States provided the help that was needed by imposing domestic self-reliance on Russia. When the Baltic states obeyed American sanctions and lost the Russian market for their cheese and other farm products, Russia quickly created its own cheese and dairy sector – while becoming the world’s leading grain exporter.
Russia is discovering (or is on the verge of discovering) that it does not need U.S. dollars as backing for the ruble’s exchange rate. Its central bank can create the rubles needed to pay domestic wages and finance capital formation. The U.S. confiscations of its dollar and euro reserves may finally lead Russia to end its adherence to neoliberal monetary philosophy, as Sergei Glaziev has long been advocating, in favor of Modern Monetary Theory (MMT).
The same dynamic of undercutting ostensible U.S aims has occurred with U.S. sanctions against the leading Russian billionaires. The neoliberal shock therapy and privatizations of the 1990s left Russian kleptocrats with only one way to cash out on the assets they had grabbed from the public domain. That was to incorporate their takings and sell their shares in London and New York. Domestic savings had been wiped out, and U.S. advisors persuaded Russia’s central bank not to create its own ruble money.
The result was that Russia’s national oil, gas and mineral patrimony was not used to finance a rationalization of Russian industry and housing. Instead of the revenue from privatization being invested to create new Russian means of protection, it was burned up on nouveau-riche acquisitions of luxury British real estate, yachts and other global flight-capital assets. But the effect of sanctions making the dollar, sterling and euro holdings of Russian billionaires hostage has been to make the City of London too risky a venue in which to hold their assets – and for the wealthy of any other nation potentially subject to U.S. sanctions. By imposing sanctions on the richest Russians closest to Putin, U.S. officials hoped to induce them to oppose his breakaway from the West, and thus to serve effectively as NATO agents-of-influence. But for Russian billionaires, their own country is starting to look safest.
For many decades now, the U.S. Federal Reserve and Treasury have fought against gold recovering its role in international reserves. But how will India and Saudi Arabia view their dollar holdings as Biden and Blinken try to strong-arm them into following the U.S. “rules-based order” instead of their own national self-interest? The recent U.S. dictates have left little alternative but to start protecting their own political autonomy by converting dollar and euro holdings into gold as an asset free from political liability of being held hostage to the increasingly costly and disruptive U.S. demands.
U.S. diplomacy has rubbed Europe’s nose in its abject subservience by telling its governments to have their companies dump their Russian assets for pennies on the dollar after Russia’s foreign reserves were blocked and the ruble’s exchange rate plunged. Blackstone, Goldman Sachs and other U.S. investors moved quickly to buy up what Shell Oil and other foreign companies were unloading.
Nobody thought that the postwar 1945-2020 world order would give way this fast. A truly new international economic order is emerging, although it is not yet clear just what form it will take. But the confrontations resulting from “prodding the Bear” with the U.S./NATO aggression against Russia has passed critical-mass level. It no longer is just about Ukraine. That is merely the trigger, a catalyst for driving much of the world away from the US/NATO orbit.
The next showdown may come within Europe itself as nationalist politicians seek to lead a break-away from the over-reaching U.S. power-grab over its European and other allies to keep them dependent on U.S.-based trade and investment. The price of their continuing obedience is to impose cost-inflation on their industry while subordinating their democratic electoral politics to America’s NATO proconsuls.
These consequences cannot really be deemed “unintended.” Too many observers have pointed out exactly what would happen – headed by President Putin and Foreign Minister Lavrov explaining just what their response would be if NATO insisted on backing them into a corner while attacking Eastern Ukrainian Russian-speakers and moving heavy weaponry to Russia’s Western border. The consequences were anticipated. The neocons in control of U.S. foreign policy simply didn’t care. Recognizing Russian concerns was deemed to make one a Putinversteher.
European officials did not feel uncomfortable in telling the world about their worries that Donald Trump was crazy and upsetting the apple cart of international diplomacy. But they seem to have been blindsided by the Biden Administration’s resurgence of visceral Russia-hatred via Secretary of State Blinken and Victoria Nuland-Kagan. Trump’s mode of expression and mannerisms may have been uncouth, but America’s neocon gang have much more globally threatening confrontation obsessions. For them, it was a question of whose reality would emerge victorious: the “reality” that they believed they could make, or economic reality outside of U.S. control.
What foreign countries have not done for themselves to replace the IMF, World Bank and other strongarms of U.S. diplomacy, American politicians are forcing them to do. Instead of European, Near Eastern and Global South countries breaking away as they calculate their own long-term economic interests, America is driving them away, as it has done with Russia and China. More politicians are seeking voter support by asking whether their countries would be better served by new monetary arrangements to replace dollarized trade, investment and even foreign debt service.
The energy and food price squeeze is hitting Global South countries especially hard, coinciding with their own Covid-19 problems and the looming dollarized debt service coming due. Something must give. How long will these countries impose austerity to pay foreign bondholders?
How will the U.S. and European economies cope in the face of their sanctions against imports of Russian gas and oil, cobalt, aluminum, palladium and other basic materials. American diplomats have made a list of raw materials that their economy desperately needs and which therefore are exempt from the trade sanctions being imposed. This provides Mr. Putin a handy list of U.S. pressure points to use in reshaping world diplomacy and helping European and other countries break away from the Iron Curtain that America has imposed to lock its satellites into dependence on high-priced U.S. supplies?
The Biden Inflation
But the final breakaway from NATO’s adventurism must come from within the United States itself. As this year’s midterm elections approach, politicians will find a fertile ground in showing U.S. voters that the price inflation led by gasoline and energy is a policy byproduct of the Biden Administration’s blocking of Russian oil and gas exports. (Bad news for owners of big SUV gas guzzlers!) Gas is needed not only for heating and energy production, but to make fertilizer, of which there already is a world shortage. This situation is exacerbated by blocking Russian and Ukrainian grain exports to the United States and Europe, causing food prices already to soar.
There already is a striking disconnect between the financial sector’s view of reality and that promoted in the mainstream NATO media. Europe’s stock markets plunged at their opening on Monday, March 7, while Brent oil soared to $130 a barrel. The BBC’s morning “Today” news broadcast featured Conservative MP Alan Duncan, an oil trader, warning that the near doubling of prices in natural gas futures threatened to bankrupt companies committed to supplying gas to Europe at the old rates. But returning to the military “Two Minutes of Hate” news, the BBC kept applauding the brave Ukrainian fighters and NATO politicians urging more military support. In New York, the Dow Jones Industrial Average plunged 650 points, and gold soared to over $2,000 an ounce – reflecting the financial sector’s view of how the U.S. game is likely to play out. Nickel prices rose by even more – 40 percent.
Trying to force Russia to respond militarily and thereby look bad to the rest of the world is turning out to be a stunt aimed simply at ensuring Europe contribute more to NATO, buy more U.S. military hardware and lock itself deeper into trade and monetary dependence on the United States. The instability that this has caused is turning out to have the effect of making the United States look as threatening as Russia is claimed to be by the NATO West.
- Libya’s gold also disappeared after NATO’s overthrow of Muammar Gaddafi in 2011. ↑
- See most recently Radhika Desai and Michael Hudson (2021), “Beyond Dollar Creditocracy: A Geopolitical Economy,” Valdai Club Paper No. 116. Moscow: Valdai Club, 7 July, repr. in Real World Economic Review (97), September 23, 2021 – Real-World Economics Review Blog. ↑
Here’s is Reminiscent of a Future’s take plus update on VSU Air Force:
Well, Well, Well...https://smoothiex12.blogspot.com/2022/03/well-well-well.html?m=1
Translation: MOSCOW, March 6 - RIA Novosti.Moscow received documents from employees of Ukrainian biological laboratories confirming that components of biological weapons were being developed in Ukraine, in close proximity to Russian territory. This was stated to journalists by the official representative of the Russian Ministry of Defense, Major General Igor Konashenkov. "In the course of a special military operation, the facts of an emergency cleansing by the Kiev regime of traces of a military biological program being implemented in Ukraine, funded by the US Department of Defense, were uncovered"
If this serves to further displace Guaidó and feel egocentrically important for believing they have the US at their feet... they surely will. The petro is a cryptocurrency anchored to oil and after several years, they returned to anchor the salary to the petro with the idea that the more the price of oil soars, the more they will "stabilize" the country's economy. Here there is hope that since green energy is not going to work, the result will be to buy oil from the major oil exporting countries and that was precisely the card they knew they were going to play "lifting the sanctions". The US will not be the only one to negotiate here.
Yes but this is another subject, I heard about this information a couple of years before (that the russian army & government IT was not running on US hardware nor software) - here i was mentionning all the rest, all the windows-based system, except if i'm wrong but I think that almost all russian citizens are using US-based hardware and software. Cutting russia from internet and create, as Joe wrote, a (huge) country-wide intranet would allow them to more easily stop or slow down any highly contagious (cyber) virus that could spread among the "russian network/intranet".The Russians have more than one barrier of protection. In previous comments I had shared about the issue of microprocessor material shortages. The thing is that the Russians use their own microprocessor architecture for everything at the state and government level.
That architecture not being dependent on x86 microcode (intel - amd) and therefore not vulnerable to backdoors.
Basically EEUU it’s now getting the consequences of its acts now and it’s changing the rhetoric about Venezuela.
To : Remember when we used to invest millions to change your government with false flags operations and media warfare, accusing you of communist regime AND even put a clown as a ‘interim president’ to take your gold and investments away? Well, why don’t we forget that and let’s us have your oil for cheaper cost and be friends?
Psychopaths being hypocritical like always…
Can a Russian speaker check out the text at this link and let us know if it seems legit?
Here you go:I would love to watch, but Twitter doesn't open. If you put the text here, then of course I can look and speak out. I usually don't use things like Twitter, Instagram, etc. social networks, so I don't even know if it's a local failure or if it was blocked by us. It seems that something was reported on this topic, but I don't need anything and I don't follow.
Я бы с удовольствием посмотрел, но твиттер не открывается. Если текст выложить сюда, то конечно можно посмотреть и высказаться. Я обычно такими вещами как твиттер, инстаграмм и пр. соцсетями не пользуюсь, поэтому даже не знаю это локальный сбой или его у нас заблокировали. Вроде что то сообщали на эту тему, но мне ни к чему и я не следил.
Twitter text:Can a Russian speaker check out the text at this link and let us know if it seems legit?
The two documents in question as high resolution images. Click on the images to read:
We, the free people of Kharkov, Nikolaev, Sumy, Chernigov and other regions of Ukraine, declare and proclaim the formation of a new democratic state, the Federal Republic of Ukraine.
When the course of events leads to the fact that people of different nations and peoples are forced to terminate the political ties that bind them to a state by dictatorial repressive methods that impose the ideology of Nazism on society, they have an inalienable right to take an independent and equal place among the nations of the world, and a respectful attitude towards the opinions of mankind requires them to explain the reasons that prompted him to such a separation.
When a long series of egregious and inhumane abuses and acts of violence, invariably subordinated to the same goal, testifies to the insidious design to force our peoples to accept unlimited despotism, dictatorship and the complete rehabilitation of Nazism, the overthrow of such a government and the creation of new security guarantees for the future becomes a right and a duty of the peoples of Ukraine.
The peoples of Ukraine have shown patience for a long time, and only necessity compels them to change the previous system of their government.
The history of the existence of the state of Ukraine is a set of countless injustices and acts of violence, the purpose of which was to establish unlimited despotism and neo-fascist dictatorship.
To confirm the above, we present the following facts to the impartial judgment of all mankind.
► There was carried out the glorification of Nazi criminals guilty of genocide and of the destruction of hundreds of thousands of people—Ukrainians, Russians, Jews, Poles and people of other nationalities.
► Freedom of speech and press, freedom of assembly were eliminated.
► Political opposition was prohibited.
► A system of total surveillance, reprisals against unwanted and massacres was been organized.
► The justice system was destroyed.
► A corrupt model of state administration was been created, which has led to the exodus from the country of 7 to 12 million people who were deprived of their livelihoods.
► The healthcare system was destroyed, which led to a catastrophic die-off of the population.
► An education reform has been carried out prohobiting teaching in Russian, Hungarian and other languages.
► Finally, a civil war was been unleashed in the Donbass.
The ruling regime in Kiev united with others to subject us to a jurisdiction alien to our constitution and not recognized by our laws, and approved acts that claimed to become legislation and served to:
♦ conducting exercises and quartering the armed forces of foreign states with us;
♦ releasing from the punishment military and police officers who have committed murders of residents through legal proceedings only legal in appearance;
♦ termination of our trade with other states;
♦ elimination of jobs;
♦ forcing citizens to leave the country in search of work;
♦ taxing us without our consent;
♦ depriving us in many court cases of the opportunity to enjoy the benefits of trial by jury;
♦ the abolition of some and the adoption of other laws that are contrary to the wishes of the majority of the population of Ukraine;
♦ revoking the rights and freedoms granted to us, repealing our most useful laws, and fundamentally changing the forms of our government;
♦ suspension of the activities of local and regional authorities and appropriation of the authority to legislate in their place in a variety of cases.
Therefore, we, representatives of the regions of Ukraine, having in our hearts the honesty of our intentions, on behalf of and under the authorization of the peoples of these regions, solemnly record and declare that these regions are and by right should be free and independent, that they are freed from any dependence on to the Kiev authorities and that all political ties between them and the state of Ukraine must be completely severed, that, as free and independent states, they are authorized to declare war, conclude peace treaties, enter into alliances, conduct trade, and perform any other actions that are the prerogatives of an independent state.
Our goal is to unite all the peoples of Ukraine who do not want to put up with the domination of neo-Nazism and bloody crimes on our land.
Our goal is to create a democratic federal state and carry out complete denazification and de-Banderization, and the introduction of criminal liability for the rehabilitation of Nazism.
Our goal is to create a democratic federal state where every nation can speak its own language. The number of state languages is not to be limited.
Our goal is to create a democratic federal state, where the main goals will be to ensure human rights and freedoms.
Our goal is to create a democratic federal state where freedom of religion will be ensured and the independence of the Church from the state will be guaranteed.
Our goal is to create a democratic federal state and punish war criminals who are guilty of unleashing a civil war and mass bloodshed.
Our goal is to create a democratic federal state with a free market economy.
Our goal is neutrality and friendly relations with all states of the world.
We ask all countries of the world to recognize the state of the Federal Republic of Ukraine.
May the Lord help us.
This manifesto is open for signing by representatives of regional and city councils of all regions of Ukraine.
Source: https://rusvesna.su/news/1646075757
Now, the specific question from YouTube:
If at some point on your blog or here you could address the issue of the logistical/physical realities (or lack thereof) of current foreign arms promises/shipments I and I would guess many others would be indebted. I understand on a basic level the challenges if not impossibility of distributing these promised weapons and systems any further than Western Ukraine (if even that far east) to what would be unorganized fighters and mercenaries, but it would be great if you could weigh in on the issue, if even generally, and/or point to a solid analysis addressing this issue. Many thanks again!
Here is the answer. Yes, the West is pumping weapons into 404, but it has to be understood that majority of this weaponry is of anti-tank and manpad variety. While manpads could be a danger to low flying aircraft, especially helicopters, they are primarily a danger AFTER the war around airports with commercial aviation. 404 has (and took delivery of) thousands of manpads but they were marginally effective shooting down one Su-25, allegedly one Mi-35 and we don't know with what lone Su-34 was shot down. Something tells me that Su-34 case could be that of a remaining ukie Buk-M1 and AD ambush.
Per anti-tank weapons. A vaunted and much talked about Javelin performed abysmally. Two cases of Javelins hitting Russian tanks have been reported by Russian MoD. In both cases tanks continued with the task, one of the crews had minor concussions and continued with the task in their tank and destroyed two ukie tanks. They will be awarded. So, all in all, all those ATMs, manpads and RPGs are primarily weapons for what Washington thinks will be a prolonged guerilla warfare in 404, but why they are delusional about creating a "second Afghanistan" for Russians is a separate topic. As I am on record--Washington yet again fails to understand the nature of the war and how it is prosecuted. They just don't learn. Russia IS NOT going to occupy 404, let alone in parts where steppes and sparse forest-steppes flow into the alpine and foresty landscape of Western Ukraine. Moreover, that will be new, reconstituted, Ukrainian security forces which will be dealing with the issue of a residual nazi infestation.
Finally, I would not exclude a NATO movement into the western Ukraine to “protect” the “innocent civilians” and “refugees fleeing the Russian massacres” being “murdered en masse” by the “indiscriminate bombing” by “Putin’s hordes”.
The rather pathetic zig-zags about “yes we will deliver fighters to the Ukraine” and “no we won’t deliver fighters to the Ukraine” seems to suggest that there are still a few folks left at Mons and the Pentagon who understand the risks of such a trick. They also must realize the futility of the entire concept (militarily speaking, this entire plan is absolutely ridiculous, do you need me to explain why?).
God willing, Lavrov will be able to get Kuleba to see the situation as it is and that Kuleba will be smart enough to understand that if these negotiations fail, there will be more negotiations in the future, only in even worse circumstances for the Ukies than today’s.
Washington is so desperate that these types of BS periodically appear as news:
The U.S. remains in discussions with Poland to potentially backfill their fleet of fighter planes if Warsaw decides to transfer its used MiG-29s to Ukraine, four U.S. officials tell POLITICO. The ongoing talks, as President Volodymyr Zelenskyy pleads with Congress for help, underscore the frantic push to find weapons to equip Ukrainian forces as they continue to fight off the massive Russian invasion. As Poland weighed sending its warplanes to Ukraine last week, Warsaw asked the White House if the Biden administration could guarantee it would provide them with U.S.-made fighter jets to fill the gap. The White House said it would look into the matter. The Biden administration didn’t oppose the Polish government giving Kyiv the MiGs, which could potentially escalate tensions between NATO and Moscow. Poland, for now, has held on to its fighter jets. Discussions between Warsaw and Washington are still underway, though authorization for new, replacement fighter jets to Poland could take a long time.
People who continue to write this BS, obviously, have zero grasp of both judicial issues and even more so of the air-dominance and air-defense issue. NO amount of old MiGs will make any difference militarily nor will any NATO fighters--all of them will be detected, tracked and shot down in Ukrainian air space.
All this BS is what we call a damage control, because the US, facing the final obliteration of its proxy force, ranging from VSU to beloved in Washington Nazis, is desperate not to repeat a debacle of Afghanistan, but this is exactly what it is especially since Russian Armed Forces already wiped out most of the VSU whose combat potential was order of magnitude larger than that of the Taliban. So, the new, much larger Afghanistan 2.0 is looming for Biden Admin and Washington's "strategists" and that explains absolute hysteria across the board in media and political establishment. Douglas Macgregor is spot on: Russia in Ukraine is not to gain territory, she is there to wipe out Kiev regime military and Nazi-driven security machine and is accomplishing her task really well.
They are also hysterical because they know that:
a) Their utter incompetence is being exposed;
b) Their lies and disinformation is breaking down;
c) The long to mid-term comparison of the US military debacles in Iraq, Syria and Afghanistan with Russia's non-stop triumphs from 080808 to Crimea, to Syria to destruction of the West-sponsored thugs with weapons is not only warranted, but inevitable;
d) By default it weakens even more the founding myth of the American military power which is the main pillar on which the US Dollar's status as the reserve currency rests.
Here you go:
The Ministry of Finance denied the shutdown of the Internet in Russia
06.03.202218:59
There are no plans to turn off the Internet in Russia, the Ministry of Finance told the Company magazine. Earlier, Telegram began distributing documents on behalf of the department's leadership with a request to state authorities to provide technical data of public resources and strengthen their security.
The documents were published by the Telegram channel "ZaTelekom". We are talking about two government telegrams on behalf of Deputy Minister of Digital Development Andrey Chernenko.
appeals to the regional authorities with a request "no later than March 9, 2022" to provide the agency with a "list of public resources owned", as well as data on the infrastructure of each of them, its peak bandwidth, the maximum number of requests and simultaneously working users. In addition, the regions must provide the Ministry of Finance with "data on the need for the availability of a public resource outside the Russian Federation."
The department asks federal authorities and regions no later than March 11 to "update or complicate password policy" on their websites, switch to Russian DNS servers and transfer public resources to Russian hosting, etc.
The Ministry of Finance confirmed the authenticity of the documents to the magazine "Company". "Cyberattacks from abroad are continuously conducted on Russian websites. We are preparing for different scenarios to ensure that citizens have access to Russian resources," the press service said.
The ministry noted that the telegram for government agencies "sets out a set of simple recommendations on cyber hygiene that will help to organize work more effectively to protect our resources from malicious traffic, to preserve the operation of services and control over domain names." "There are no plans to turn off the Internet from the inside in Russia," says the Ministry of Finance.
Earlier, the Ukrainian authorities disconnected Russia from the Internet at the level of root DNS servers. Following consideration of the request, the Internet Corporation for Assigned Names and Numbers (ICANN) and the Network Coordination Center (RIPE NCC) decided not to resort to such extreme measures.
According to ICANN CEO Joran Marby, the organization does not have such powers, since no member of the global network can control it or disable it for other participants. He explained that the Internet is a decentralized network, and ICANN was created to ensure the operation of the Network, and not to impose restrictions or bans on work in entire states.