America’s privileged position since WW II with the dollar as the world’s reserve currency is coming to an end. Thanks to the Obama administration’s hubris and incompetence the dollar’s demise is accelerating. America’s friends and allies are tired of the bullying and ham fisted mishandling of foreign policy.
De-Dollarization Accelerates As More Of Washington’s “Allies” Defect To China-Led Bank
The global de-dollarization trend continues as it appears the UK’s move to join the China-led Asian Infrastructure Development Bank has indeed shown other US “allies” that spurning Washington’s advice is actually acceptable and concerns about the institution’s “standards” may simply be a diversion aimed at undermining China’s attempt to exercise more influence in its own backyard. Here’s more from the NY Times:
Ignoring direct pleas from the Obama administration, Europe’s biggest economies have declared their desire to become founding members of a new Chinese-led Asian investment bank that the United States views as a rival to the World Bank and other institutions set up at the height of American power after World War II.
The announcement on Tuesday by Germany, France and Italy that they would follow Britain and join the Chinese-led venture delivered a stinging rebuke to Washington from some of its closest allies. It also called into question whether the World Bank and the International Monetary Fund, which grew out of a multination conference in Bretton Woods, N.H., in 1944 and established an economic pecking order that lasted 70 years, will find their influence diminished.
The announcement by Germany, Europe’s largest economy, came only six days after Secretary of State John Kerry asked his German counterpart, Frank Walter-Steinmeier, to resist the Chinese overtures until the Chinese agreed to a number of conditions about transparency and governing of the new entity. But Germany came to the same conclusion that Britain did: China is such a large export and investment market for it that it cannot afford to stay on the sidelines.
South Korea, another US ally that the Obama administration has not-so-subtly lobbied to stay out of the AIIB for the time being, is reportedly reconsidering a bid to join and although reports that Seoul had already committed to the venture appear to have been a bit premature, the country will make a decision this month and is expected to discuss specifics this weekend at a meeting with Chinese and Japanese officials. Here’s FT:
The foreign ministers of China, Japan and South Korea will meet in Seoul this weekend for the first time in three years, in an effort to calm tensions in the region.
The trio have strong economic ties but frosty relations. International angst about this state of affairs among the regional superpowers has been further piqued by the Asian Infrastructure Investment Bank, a Chinese-led initiative sparking alarm in Washington and proving divisive elsewhere.
Meanwhile, even Europe’s own “magical fairyland” is taking the plunge. Via Bloomberg:
What could the Obama administration be thinking? The eastward expansion of NATO over the years alarmed Russian leaders, but cooperation between the US and Russia continued to grow. That is until the US and the EU tried to place the Ukraine firmly under western control.
With Obama, the provocation of the Russians reached a new level. One the Russians under Putin will not ignore. Doesn’t anyone in the Obama administration know the history of the Ukraine? That it was part of Russia for 500 years? That it is clearly viewed as a buffer nation, one that the Russians will not tolerate as a member of NATO. Whatever you may think of Putin, he is a clever, tough, and yes, ruthless leader. It is not wise to demonize such a man and to underestimate his ability.
According to the US, Russia is being isolated from the world community and punished by crippling sanctions. Let’s get real here. Sanctions have hurt the Russian economy, but have fueled Russian’s pivot to the east and to nations the world over who see Russia as a more dependable ally than the bullying US. Russia is busy building its own powerful group of trading partner nations including China, Iran, India, Brazil, and Egypt.
US policies of demonizing Russia and President Putin are dangerous. Especially since we had a heavy hand in organizing and financing a coup that overthrew a duly elected Ukrainian President to be replaced by our puppet, Petro Oleksiyovych Poroshenko. Picking a fight with a nuclear armed Russia over a nation within their sphere of influence is risky business that only Neocons could want.
Nuclear Specter Returns: ‘Threat of War Is Higher than in the Cold War’
By Markus Becker in Munich
The Ukraine crisis has dramatically worsened relations between NATO and Russia. With cooperation on nuclear security now suspended and the lack of a “red telephone,” experts at the Munich Security Conference warn any escalation in tensions could grow deadly.
The scientists had no idea that their experiment could spell the end of civilization. On Jan. 25, 1995, Norwegian and American researchers fired a rocket into the skies of northwestern Norway to study the Northern Lights. But the four-stage rocket flew directly through the same corridor that American Minuteman III missiles, equipped with nuclear warheads, would use to travel from the United States to Moscow.
The rocket’s speed and flight pattern very closely matched what the Russians expected from a Trident missile that would be fired from a US submarine and detonated at high altitude, with the aim of blinding the Russian early-warning system to prepare for a large-scale nuclear attack by the United States. The Russian military was placed on high alert, and then President Boris Yeltsin activated the keys to launch nuclear weapons. He had less than 10 minutes to decide whether to issue the order to fire.
Yeltsin left the Russian missiles in their silos, probably in part because relations between Russian and the United States were relatively trusting in 1995. But if a similar incident occurred today, as US arms expert Theodore Postol warned recently, it could quite possibly lead to nuclear catastrophe.
“Five or six minutes can be enough time, if you have trust, if you have communication and if you can put this machinery immediately to work,” former Russian Foreign Minister Igor Ivanov said on the sidelines of last weekend’s Munich Security Conference. Unfortunately, he argued, this machinery works very poorly today, and there is great mistrust.
When asked what would happen today if the 1995 missile incident happened again, Ivanov responded, “I cannot be sure if the right decision would be taken.”
Deep mistrust has developed between the West and Russia, and it is having a massive effect on cooperation on security matters.
In November 2014, the Russians announced that they would boycott the 2016 Nuclear Security Summit in the United States. In December, the US Congress voted, for the first time in 25 years, not to approve funding to safeguard nuclear materials in the Russian Federation. A few days later, the Russians terminated cooperation in almost all aspects of nuclear security. The two sides had cooperated successfully for almost two decades. But that is now a thing of the past.
Instead, Russia and the United States are investing giant sums of money to modernize their nuclear arsenals, and NATO recently announced that it was rethinking its nuclear strategy. At the same time, risky encounters between Eastern and Western troops, especially in the air, are becoming more and more common, a report by the European Leadership Network (ELN) recently concluded.
“Civilian pilots don’t know how to deal with this,” explains ELN Chair Des Browne, a former British defense minister. “One of these incidents could easily escalate. We need to find a mechanism in which we can talk at the highest level.”
US General Philip Breedlove, NATO Supreme Allied Commander Europe, is calling for a new “red telephone” with Moscow. Zoom
US General Philip Breedlove, NATO Supreme Allied Commander Europe, is calling for a new “red telephone” with Moscow.
Brown, together with Ivanov and former US Senator Sam Nunn, a veteran of international disarmament policy, published an analysis in early February. The trio recommends “that reliable communication channels exist in the event of serious incidents.” In other words, these channels currently do not exist. Recently, Philip Breedlove, the head of NATO Allied Command Operations in Europe, even called for a new “red telephone,” alluding to the direct teletype connection established in 1963 between the United States and the Soviet Union after the Cuban missile crisis. A direct line had been set up between NATO and the Russian military’s general staff in February 2013, but it was cut as a result of the Ukraine crisis.
‘A Very Dangerous Situation’
“Trust has been eroded to the point of almost being destroyed,” said Nunn. “You got a war going on right in the middle of Europe. You got a breakdown of the conventional forces treaty, you got the INF (Intermediate-Range Nuclear Forces) treaty under great strain, you got tactical nuclear weapons all over Europe. It’s a very dangerous situation.”
In late January, the Bulletin of the Atomic Scientists set its “Doomsday Clock” to three minutes to midnight. The last time it was set to that time was in 1983, “when US-Soviet relations were at their iciest point,” as the group of scientists explained. The only other time when the situation was even worse was in 1953, when the clock was set to two minutes to midnight. Unchecked climate change and the “nuclear arms race resulting from modernization of huge arsenals” pose “extraordinary and undeniable threats to the continued existence of humanity,” the group’s statement read.