The Anti-Silk Road

BERLIN/BEIJING (Own report) – At this week’s Asia-Europe Meeting in Brussels, the EU will introduce a new “connectivity strategy” to counter China’s “New Silk Road.” As outlined by the EU’s head of foreign policy in September, the strategy is aimed at improving transportation infrastructure as well as digital and energy networks linking Asia and Europe. Beijing is also active in these domains in connection with its Silk Road initiative. Recently, Germany’s Ministry of Foreign Affairs launched an initial thrust in this project. At the time, Minister of State Niels Annen (SPD) declared in Uzbekistan that social standards and human rights are “priorities” for Brussels. “This is what makes our offer different from China’s Belt and Road initiative.” For years, Germany had supported – even with military assistance – the Uzbek regime that was applying torture. Washington has also launched a new infrastructure initiative in Asia, to which US Secretary of State Mike Pompeo declared that the USA is committed to “honest accords” and would “never seek dominance over the Indo-Pacific.” Continue reading

Italy Declares War on Merkel and the EU

Italy Declares War on Merkel and the EU

 

If there were ever any doubts that the leaders of the Euroskeptic coalition that now runs Italy has a plan to defy the European Union its proposed budget should quell them. Both Deputy Prime Ministers, Luigi Di Maio of Five Star Movement and Matteo Salvini of The League, were adamant about locking horns with European Union leadership over all issues of sovereignty between now and May’s European Parliamentary elections.

Their budget proposal which included both tax cuts and universal income blew past the EU budget limit of 2.0% of GDP, coming in at 2.4%. It has put their Finance Minister, Giovanni Tria, in a difficult position because Tria doesn’t want to negotiate this budget with Brussels, preferring a less confrontational, read more pro-EU, approach. Continue reading

The ECB on the Verge of Collapse?

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The European Central Bank (ECB) will aid Italy with an EU rescue program if the country or its banks are in financial turmoil because they are taking the view that Italy has become an “occupied” country and that Germany has conquered Europe imposing austerity and its view of inflation upon the whole of Europe without firing a shot. While the spin is that the ECB is making Italy a test case to demonstrate that Europe and its mechanisms work, in reality, it is a realization that the ECB cannot save Italy’s financial institutions because austerity has created the greatest economic depression perhaps in economic history. Continue reading

ECB Hands Italy An Ultimatum: ‘Obey EU Budget Rules Or We Won’t Save You’

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With the Washington Post stepping up to put a floor under US stocks Thursday afternoon by reporting that President Trump would meet Chinese President Xi Jinping at next month’s G-20 summit (while the headline soothed the market, it doesn’t change the fact that, as with everything involving the Trump administration, this too remains subject to change), investors have apparently overlooked the latest ominous headlines out of Italy. To wit, Reuters reported that the ECB won’t come to Italy’s rescue if its government or banks run out of cash unless the Italian government first secures a bailout from the European Union. Of course, this would almost certainly require that the populist coalition end its ongoing game of fiscal chicken with Brussels and abandon its  dreams of lowering the retirement age and extending a basic income to the Italian people – policies that would effectively secure a political future for M5S and the League. 

In effect, the ECB’s latest trial balloon is tantamount to blackmail: Either the Italians agree to fall back in line and obey European budgetary guidelines, or the central bank will sit back and watch as bond yields surge, providing the ratings agencies even more ammunition to cut Italian debt to junk – effectively guaranteeing a Greece-style banking crisis as the liquidity taps are turned off. Continue reading

New Report Says Trump Wants Chinese Parts Out Of American Weapons

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Top defense officials said last week that the Pentagon intends to invest in domestic manufacturing to reduce it over-reliance on Chinese and other foreign-made parts in American weapons.

The Pentagon’s reliance on China is a major topic discussed in a new report about the overall status of the defense industrial base that President Trump is scheduled to release. Some other areas include “accelerating workforce development efforts to grow domestic science, technology, engineering, mathematics, and critical trade skills,” said Defense One.

“This assessment recognizes the global nature of our supply chain and really addresses the need for strengthening alliances and partnerships so that we can jointly address industrial base risk,” Ellon Lord, undersecretary for acquisition and sustainment, said Thursday evening during a press briefing at the Pentagon. Continue reading

From the Bundeswehr’s Areas of Operation (I)

BERLIN/PRISTINA (Own report) – The EU is discussing redrawing borders in Southeast Europe. The Kosovo leadership could thus cede control over its Serbian-speaking North to Belgrade, in exchange for the Albanian-speaking Preševo valley of Southern Serbia. Obviously backed by France, the EU’s High Representative for Foreign Affairs and Security Policy, Federica Mogherini, is promoting this exchange, against Germany’s rejection. The plan, in fact, is redrawing borders in accordance with the ethnic criteria pursued by the German government in Southeast Europe, in particular during in the 1990s and early 2000s. After having been stationed in Kosovo for nearly 20 years, the Bundeswehr is preparing a major withdrawal. Its focus will now be on training and arming Kosovo’s armed forces, which have begun cooperating with NATO, while Kosovo’s population continues to languish in poverty, after nearly two decades of western occupation. It is the second poorest region in Europe. Only military cooperation with NATO is flourishing. Continue reading

EU Takes Another Step Toward a Unified Army

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European Commission President Jean-Claude Juncker leaves after his State of the Union speech at the European Parliament. (FREDERICK FLORIN/AFP/Getty Images)

 

New plans to strengthen Europe’s border force

Europe must dramatically expand its European Border and Coast Guard force, European Commission President Jean-Claude Juncker stated during his State of the Union address on September 12.

He aims to spend €1.3 billion to add an additional 10,000 border guards by 2020. Continue reading

Poll: AfD Now Germany’s Second-Most Popular Party

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(Photo Credit: Alternative for Germany)

 

A little more than one year after becoming the first “far-right” party to win seats in the Bundestag in more than 50 years, the AfD is now officially the opposition to Merkel’s “grand coalition,” which required alliances with not only Bavaria’s Christian Social Union and the Social Democratic Party to hold a majority of seats. A new poll has placed AfD one point ahead of the SDP in terms of generic support. Continue reading

The Transatlantic Liquefied Gas Dispute

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BERLIN/WASHINGTON (Own report) – German Foreign Minister Heiko Maas has once again reaffirmed that the German government insists on continuing with the highly controversial Nord Stream 2 gas pipeline. Despite persistent pressure from Washington, there will be no interference in the construction of the pipeline – which has long since begun – reiterated Maas at this years annual UN General Assembly in New York. At the same time, US efforts to promote the sale of US liquefied gas to Germany are stagnating. If the liquefied gas would be priced closer to the currently much cheaper pipeline gas, it could certainly be considered, according to the Uniper company (formerly EON). Uniper is currently contemplating the construction of a liquefied gas terminal in Wilhelmshaven. However, it would not even have one-fifth of the import capacity of Nord Stream 2. Plans for constructing a terminal in Brunsbüttel, which currently have the best chances of implementation, envisage the importation of only half as much LNG – primarily to fuel ships and trucks. Continue reading

Europe Launches War On Italy’s Fiscal Plans: Warns Of Debt “Explosion”, Threatens Savers

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In the aftermath of Italy’s defiant announcement that it would expand its 2019 budget deficit to 2.4% of GDP, above both the initial proposal from finmin Tria which was 1.6%, and also higher than the European “redline” of 2.0%, the question was how would Europe respond to this open mutiny by Italy.

The answers started to emerge on Friday, when European Parliament head Antonio Tajani said that fiscal targets set by Italy’s eurosceptic government were “against the people” and could hit savers without creating jobs.

“I am very concerned for what is happening in Italy,” said Tajani, who is a center-right opposition politician in Italy and close ally to former Prime Minister Silvio Berlusconi. The budgetary plans “will not raise employment but will cause trouble to the savings of the Italians,” Tajani said. Continue reading

On a State Visit to Berlin

 

BERLIN/ANKARA (Own report) – Turkish President Recep Tayyig Erdoğan’s arrival in Berlin on a state visit amid media reports of arms cooperation with his country and of state-sponsored denunciation, using a smartphone app of those – also in Germany – critical of his government. Erdoğan will be received with all protocolary state honors, since the German government wants to strengthen its ties to Ankara at all costs. There is a growing risk that Ankara will turn its back on the West. Germany seeks to strengthen these ties because of Turkey’s contribution to warding off refugees and particularly for geostrategic motives. Turkey is regarded as the indispensable isthmus to Germany gaining the much-coveted influence in Central Asia and the Middle East. Ankara is also facilitating the participation of Berlin in achieving an alignment in Syria, together with Moscow – but with the exclusion of Washington. Expansion of German-Turkish cooperation involves contracts in the billions for German companies and German participation in the development of Turkey’s own arms industry.

Continue reading

World upside down as EU and Russia unite against US

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EU refused to be ‘pushed around by the unilateral decisions of our US allies’, France’s Emmanuel Macron said (Photo: Consilium)

 

The UN general assembly in New York, the world’s largest diplomatic event, turned into a show of EU solidarity with Russia and China against the US on Tuesday (25 September).

The development, which came about over Iran, symbolised a world-turned-upside-down by US leader Donald Trump’s unilateralism.

It left Mike Pompeo, Trump’s foreign policy chief, “disturbed and indeed deeply disappointed”. Continue reading

China Launching More Sophisticated Cyber Attacks and Plans to Persist, Report Says

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The offices of PricewaterhouseCoopers in St. Helier, Jersey, U.K., on April 12, 2017. That month, China-based hackers attacked PwC through its IT service providers. (Matt Cardy/Getty Images)

 

China doesn’t plan to cease conducting commercial espionage that benefits the central government, even as the U.S. is rolling out new, proactive cyber strategies to counter threats from Beijing, a new report by an Australian think tank says.

Furthermore, China’s hacking capabilities have gotten more sophisticated, with the intention of making the hacking harder to detect, according to a new report by the Australian Strategic Policy Institute. Continue reading

EU, Iran agree to create ‘special vehicle’ to maintain trade

Iran has said it will not accept any attempts to halt country’s oil exports (Reuters)

 

To keep nuclear deal intact, EU establishes legal mechanism to keep trade with Iran, including in oil

The remaining parties to the Iran nuclear deal said on Monday that they agreed to continue work to create a special mechanism to maintain trade with Iran, including in oil, following the US withdrawal from the 2015 pact.

Continue reading

Stocking Up for World War III

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Nuclear nonproliferation efforts are ending. A new arms race has begun.

Since the United States and the Soviet Union backed away from the precipice of nuclear war in the 1980s, the world’s stocks of nuclear weapons have declined from an estimated 60,000 to an estimated 10,000.

According to a 2014 study by science journal Earth’s Future, however, it would take just 100 nuclear detonations to create a worldwide climate catastrophe causing massive famine and death. Continue reading