THE ROVING EYE - Washington plays Russian roulette By Pepe Escobar

Washington plays Russian roulette

THE ROVING EYE Washington plays Russian roulette By Pepe Escobar These are bleak times. I've been in serious conversation with some deep sources and interlocutors - those who know but don't need to show off, privileging discretion. They are all deeply worried. This is what one of them, a New York strategic planner, sent me: The propaganda attack against Putin equating him with Hitler is so extreme that you have to think that the Russians cannot believe their ears and cannot trust the United States anymore under any circumstances. I cannot believe how we could have gotten ourselves into this situation to protect the looters in the Ukraine that Putin would have rid the Ukraine of, and even had the gall to place in a leadership role one of the worst of the thieves. But that is history. What is certain is that MAD [mutually assured destruction] is not a deterrent today when both sides believe the other will use nuclear weapons once they have the advantage and that the side that gains a decisive advantage will use them. MAD is now over. That may sound somewhat extreme - but it's a perfectly logical extension, further on down the road, of what the Russian president intimated in his already legendary interview with Germany's ARD in Vladivostok last week: the West is provoking Russia into a new Cold War. [1] Mikhail Gorbachev just stressed a few days ago the new Cold War is already on. Princeton's Stephen Cohen says the Cold War in fact never left. The Roving Eye reported about Cold War 2.0 months ago. Brits - still stranded in the 19th century new Great Game - prefer to spin the "strident toxic personality" of "diminutive Putin"; [2] he is the "ruthless, charming and ultimately reckless" man who "put the cold war back in vogue". The Council on Foreign Relations, predictably, mourns the end of the post-Cold War world, blasts the current "disorder", and dreams of the good ol' unchallenged exceptionalist days. [3] For arguably the best detailed background on how we came to this perilous state of affairs, it's hard to beat Vladimir Kozin of the Russian Institute for Strategic Studies. [4] Read him carefully. And yes, it's Cold War 2.0, the double trouble remix; between the US and Russia, and between NATO and Russia. Seeing red In his ARD interview, Putin stuck to actual facts on the ground: "NATO and the United States have military bases scattered all over the globe, including in areas close to our borders, and their number is growing ? Moreover, just recently it was decided to deploy special operations forces, again in close proximity to our borders. You have mentioned various [Russian] exercises, flights, ship movements and so on. Is all of this going on? Yes, it is indeed." For the Russia-demonizing hordes, it's always convenient to forget that NATO expansion to Georgia and Ukraine was clinched at a NATO meeting in Bucharest in April 2008. The Georgia op spectacularly failed in the summer of 2008. Ukraine is a work in progress. Crucially, in the ARD interview, Putin also told the EU coalition of the clueless/vassals/puppets/ that Russia can bring down the Ukraine House of Cards in a flash; Moscow just needs to emphasize it's time to collect the humongous amounts of cash it is legally owed. Putin also made it very clear Moscow won't allow - and that was categorical: won't allow - Donbass to be overrun/smashed/ethnic-cleansed by Kiev: "Today there is fighting in eastern Ukraine. The Ukrainian central authorities have sent the armed forces there and they even use ballistic missiles. Does anybody speak about it? Not a single word. And what does it mean? What does it tell us? This points to the fact, that you want the Ukrainian central authorities to annihilate everyone there, all of their political foes and opponents. You want that? We certainly don't. And we won't let it happen." [5] According to Kiev's own figures, no less than 65% of residential buildings and 10% of schools and kindergartens in Donbass have been destroyed. Over 40,000 medium-sized companies are paralyzed. Unemployment - Ukraine-wide, is over 40%. External debt may reach US$80 billion - and don't expect the International Monetary Fund, which now owns Ukraine, to go philanthropic. Most of all, Kiev can't pay its billionaire gas bills to Gazprom because it spends a fortune terrorizing eastern Ukraine citizens. This Poroshenko rant sums it all up - with the US and EU fully complicit. So NATO has been warned about Russia's real red lines. Still, substantial sectors of the Washington/Wall Street elites can't get enough of war. And they like it hot. [6] No one should ever underestimate the unlimited stupidity of the Return of the Living Neo-con Dead using their favorite pulpit, the editorial page of the Wall Street Journal. The "logic" behind Cold War 2.0 - now in full swing - couldn't give a damn about European stability. The Obama administration launched it - with NATO as the spearhead - to in fact prevent Eurasian integration, building a New Berlin Wall in Kiev. The immediate target is to undermine Russia's economy; in the long run, regime change would be the ultimate bonus. So the logic of escalation is on. The economically devastated EU is a joke; the only thing that counts for the US is NATO - and the overwhelming majority of its members are in the bag, sharing the prevailing mood in Washington of treating Putin as if he were Milosevic, Saddam Hussein or Gaddafi. There are no signs whatsoever Team Obama is willing to de-escalate. And when the Hillarator President-in-Waiting ascends to the throne, all bets are off. Notes: 1. Putin's Sunday Interview on German TV (Dubbed + Transcript), Russian Insider, November 19, 2014. 2. The new cold war: are we going back to the bad old days?, The Guardian, November 19, 2014. 3. The Unraveling: How to Respond to a Disordered World, foreignaffairs.com, December 2014 issue. 4. See here. 5. The broken-down beauty of Eastern Ukraine, 25 years after the end of the USSR, Quartz, November 15, 2014. 6. The Wall Street Journal Wants the US to Go To War in Ukraine, Russia Insider, November 18, 2014. Pepe Escobar is the author of Globalistan: How the Globalized World is Dissolving into Liquid War (Nimble Books, 2007), Red Zone Blues: a snapshot of Baghdad during the surge (Nimble Books, 2007), and Obama does Globalistan (Nimble Books, 2009). He may be reached at pepeasia@yahoo.com.

THE ROVING EYE - Do the Trans-Siberian shuffle By Pepe Escobar

THE ROVING EYE Do the Trans-Siberian shuffle By Pepe Escobar A specter haunts the elites of the Empire of Chaos; the new Russia-China strategic partnership. It's manifesting itself in myriad ways - energy deals, investment deals, a closer political alliance inside the G-20, the BRICS and the Shanghai Cooperation Organization, a concerted effort to progressively bypass the petrodollar. I have described this long process as essential to the birth of the Eurasian century. From a Washington/Wall Street point of view, it was so much easier in those long gone, unipolar, "end of history" days. China was still tiptoeing on the banks of the river of capital accumulation, and Russia was down if not out. So allow me a flashback to the early 1990s. I had been on the road in Asia for months, from all points Southeast Asia to India, Nepal, the Himalayas and the eastern Chinese seaboard. Then I finally hit Beijing - waiting in the bitter winter of early 1992 to take the Trans-Siberian to Moscow. I was barely aware of the collapse of the Soviet Union - not exactly a news item in the Himalayas. I was also fortunate enough to be in southern China just a few days after Deng Xiaoping made his famous tour - whose key consequence was to catapult the dragon to dizzying development heights. A look back to those heady times may have the merit of illuminating our present. All aboard the night train  It's 8:32 pm in Beijing Railway Station, and the Trans-Manchurian Train 19 to Moscow is about to depart. It's minus 9 degrees Celsius. A bunch of Romanian crazies are trying to load more than 20 huge, vaguely green bundles stuffed with Made-in-China gear into one of the carriages. The Russian comptroller spouts out a "Nyet". Romanian chicks immerse in Transylvanic hysteria. Then a stash of George Washingtons changes hands at the final whistle, just in time for PLA soldiers and lady sweepers sporting the ubiquitous red armband with the words "Serve The People" to impassibly observe the happy ending. A cacophony of Russians, Poles, Romanians, Czechs and Mongols has deployed dozens of bags, bundles and sacks to totally overload the train corridors. 300 kg of shoes. 500 kg of jackets. 200 kg of T-shirts. Thousands of beauty cream pots that will be all the rage from Bucharest to Cracow. A "bed" on the train is a concavity over one of the bundles. That will be story for six days, across over 9,000 snowy kilometers in the former USSR, now Russia, from East to West. At the comptroller's compartment, more bags - whose content will be sold in the streets of Moscow. With so many George Washingtons in sight, the success of her bazaar is guaranteed - what with multiple stops on the way and an unregulated "free" market in every platform. The whole of Eastern Europe is loaded with stuff and dying to make a quick buck. In the Chinese stretch of the journey, nothing happens, unlike the 1930s, when Japan occupied Manchuria, installed puppet Pu Yi on the throne and was ready to take over Asia. The Terminator action starts in Zabaikalsk, at the Russian-China border - after we cross a huge Arc of Triumph in cement, complete with Leninist motto and not-yet-destroyed hammer and sickle. Customs - on both sides - is absolutely deserted. The train changes configuration to adapt to the new tracks. Yet all sights are set on the new dining car; exit Chinese, which only offered a miserable pork with soya sauce; enter Russian, crammed with goulash, soup, salami, frozen fish, black caviar, champagne from Crimea, coffee, eggs, even cheese - everything on the black market paid with US dollars. With the border behind us, it's go-go bazaar time. Everyone freaks out, because we instantly move from Beijing time to Moscow time. Sunrise is at 1 in the morning. The black market is running at $1 = 110 roubles, the rouble in free fall as we cut through the sublime snowy infinite desert of the Siberian tundra, where each spectacular sunrise under a slight Arctic fog is an epiphany celebrated with more Crimea champagne. Occasionally we spot reindeers or even huskies. The taiga - coveted by Japan, Korea and the US - is enveloped in snow. Beyond lay the ghosts of the 20 million corpses in Stalin's gulags, the hunters of the rare Amu tiger (fewer than 200 left) and the sinister Norilsk complex; 2 million tons a year of sulphuric acid and other heavy metals dumped in the atmosphere - the reason for that Arctic fog. The train stops stretch for 15 and even 20 minutes, reaching a nadir in Novosibirsk and Perm, which previously housed a notorious gulag. At every stop, hordes of Russians in Genghis Khan mode attack the train with little plastic bags. The best deal in the Trans-Siberian is anoraks and leather jackets. Jao, from Beijing, sells 50 in three days, at up to US$50 each; she paid $20 each in the Beijing hutongs. The Russians buy everything in sight and sell roubles - now plunging to 160 to the US dollar - as well as vodka, beer, salami, champagne and local $1 Pepsi bottles. The whole of Eastern Europe has taken over Train 19. Post-Ceausescu Romanians are the most exuberant - from former boxers to hookers to a seedy gangster in a tracksuit boasting about his two hours with a Russian doll for $10 (the going rate is $20). There's an Albanian contingent, young Polish students, shirtless Mongol nomads feverishly counting their profits, babushkas bored to death and even a loquacious Chinese dandy. The Russian carriages, once elegant, are a mess: foul air, dense cigarette smoke, drenched in sweat, toilets crammed with sacks, and "Kapitan", the only waiter, trying to make a quick buck selling Soviet paraphernalia. I find it the ideal setting to devour almost 1,000 pages of Norman Mailer's Harlot's Ghost, a history of the CIA. Blame it on glasnost Train 19 is not only a bazaar but also a multinational Agora. Young Russians elaborate how the almost genius perversity of the Soviet system led it to boost to the limit all the problems of modern industrial societies - offering nearly none of its benefits. Eastern Europeans volunteer that it was not the Cold War that finished off "real socialism"; it was the invasion of the capitalist economy combined with the inefficiency and "stupidity" (copyright by a Polish undergraduate) of the socialist economy. Russians say that glasnost finished off authority and perestroikafinished off the economy - and there was nothing to replace either. End result: physics graduates selling caviar tins in a moving train for survival. Everyone praises Gorbachev but essentially condemn him to a short historical footnote. In the train, I heard arguments that would be reproduced years later in countless US academic studies. All the Trans-Siberian navigators exhibit a solidarity not to be found at the United Nations; they exchange currencies, swap addresses, lend money and the indispensable calculators, help to load and unload the loot, accept bundles in their compartment, offer their places for half an hour for those who only have the corridor to sleep, and crack jokes about the small Bank of China yuan bills. They are all ardent defenders of this unheard of form of direct democracy that is synonym with the end of the Cold War. Amid the casino lurks the most improbable character: Lulu, a diminutive Bangladeshi, always attached to a Samsonite, dabbling in Allah-only-knows mysterious activities, passport filled with dodgy visas, Saudi Arabian included. Chinese and Russians treat him like an allergic Pekingese. Train chow is predictably unbearable for this strict Muslim, who wakes us all up everyday at 5 am with his prayers - Rashid Muhammad spends six days literally on bread and water. Skolka? That's the Trans-Manchurian bazaar motto, a preview of Moscow. Pink Floyd launched the legendary Dark Side of the Moon at the height of the Brejnev era; Moscow suburbs look like the ghostly, dark side of the moon. Stalin's lunatic legacy is alleviated only by a solitary kiosk selling flowers, fruit or sweet Georgia brandy. We arrive as zombies - and only a few hours late - at Yaroslavlsky Vakzal, one of nine Moscow train stations, where a deluge of Volga taxis fight for the precious Chinese cargo. Those moving on to Eastern Europe without a reservation are doomed: seats for Warsaw and Berlin are only available in 40 days. In Shenzhen, Guangzhou, Shanghai and Beijing, I had witnessed the spectacular success of post-Tiananmen Chinese "market socialism", where the economy was the locomotive and politics was dispatched to the bottom end of the train. Nothing more astonishing than the contrast with Moscow, where politics was the locomotive. I'm housed by Dmitri, an odontology student, three metro stops from the Kremlin, paying $6 a day, a small fortune; he and his girlfriend precariously subdivide the two-bedroom, one-bathroom apartment with a whole family, dog included, besides the occasional Western visitors, who sleep in the master bedroom. This is considered an upper middle-class lifestyle. At the beautiful metro stations, it's the return of the Trans-Siberian bazaar; on sale are political or porno samizdats, second-hand clothes, bottles of every possible liquid. Only when I reach Red Square doI see the light; at the Himalayas and China, my time-zone was still on Gorbachev. What's now at the top of the Kremlin is a Russian flag - as well as in the center of Dzerzhinsky square, in front of the KGB. As a perfect idiot, I aim for the statue of Felix Dzerzhinsky, the former head of the Soviet secret police, only to be warned by a student that it had been torn down weeks ago. Gorbachev is now a vodka brand. And I can't get inside the KGB building. The whole city is converted into a giant Turkish bazaar. After Boris Yeltsin liberated the sidewalks, everyone wants to exercise thisprivatizatsiya thing. Until 1990, nobody knew what a checkbook or a credit card was, and $1 was equivalent to 1 rouble. There are absolutely astonishing street markets on Prospekt Marka and Gorki street, everyone silently in line exhibiting their wares; a broken doll, a solitary shoe, dusty champagne bottles, perfume, instant coffee, sardine tins, an empty beer bottle. The streets are filled with all the stuff brought by the Trans-Siberian navigators, but the supermarkets are empty. There's very little milk or meat, but lots of canned fish and interminable lines to buy nothing - with potential consumers resigned to play chess. The biggest hit in town is the new McDonald's on Pushkin square - one of the busiest in the world, selling full meals for 50 cents by cashiers sporting an Eva Herzigova smile. In front of the MacD, a paper Gorbie poses for tourists, and a crowd sells caviar tins for $5 and champagne for $3. At the GUM department store, there is not much except a few Sony and Honda showrooms and a new Dior window. The recent past does not let go; it's impossible to call Europe. It's impossible to send a fax from the Post Office. It's impossible to make a train reservation. It's impossible to make a plane reservation - at least on the Aeroflot shop in Lubyanka; only at the cavernous Intourist Hotel. At the lugubrious ground floor of the Mockba Hotel, deaf and dumb characters straight out of an Ionesco play crowd the corridors while a beer black-market does brisk business in front of the hotel bar. A glass of champagne goes for 50 cents. At the hall of the legendary Metropol - the 1899 Grand Dame favored by Trotsky - a dry martini is a steep $7,70. The Metropol is the new Wall Street; Danes, Italians, Americans and Chinese discuss all deals this side of a Brave New World downing Heinekens at $5 a pop. On Armed Forces Day, a Sunday, there's a communist demonstration, repressed with tact, boasting large numbers of old ladies carrying flowers and flags. For their part, Moscow punks with anarchist flags protest against the Armed Forces. A pre-historic Volga takes me to Sheremetyevo as if I was running from a 1950s Cold War B-movie set. The Volga gurgles, stops, cools off, runs, gurgles, stops again, cools off; a metaphor of the new Russia, and I almost miss Aeroflot SU 576 back to Paris. Nothing will ever be the (unipolar) same  Those were the days. That McDonald's - symbol of unipolar, "end of history", Pax Americana - has been recently shut down. It's harder and harder for the Empire of Chaos to rule the world alone while McDonald's serves burgers. Across Pushkin square, the fashionable Cafe Pouchkine now serves the best of Russian haute cuisine. And still, both Russia and China are seen as pariahs by the unipolar, imperial elite. It's as if we were still frozen in those early1990s days. Russia and China may have changed almost beyond recognition - but for the Empire of Chaos the priorities are to tear Russia apart, starting with Ukraine, and "pivot to Asia" via an anti-China military/economic axis in the Western Pacific. Meanwhile, the Trans-Siberian will soon be linked with the Chinese-driven New Silk Roads. And then one day in the early 2020s this will all be a high-speed rail network, linking Eurasia in a flash. And nothing will ever be the (unipolar) same. Except for the back-to-Russia Crimean champagne. Pepe Escobar is the author of Globalistan: How the Globalized World is Dissolving into Liquid War (Nimble Books, 2007), Red Zone Blues: a snapshot of Baghdad during the surge (Nimble Books, 2007), and Obama does Globalistan (Nimble Books, 2009). He may be reached at pepeasia@yahoo.com.

THE ROVING EYE - Do the Trans-Siberian shuffle By Pepe Escobar

THE ROVING EYE Do the Trans-Siberian shuffle By Pepe Escobar A specter haunts the elites of the Empire of Chaos; the new Russia-China strategic partnership. It's manifesting itself in myriad ways - energy deals, investment deals, a closer political alliance inside the G-20, the BRICS and the Shanghai Cooperation Organization, a concerted effort to progressively bypass the petrodollar. I have described this long process as essential to thebirth of the Eurasian century. From a Washington/Wall Street point of view, it was so much easier in those long gone, unipolar, "end of history" days. China was still tiptoeing on the banks of the river of capital accumulation, and Russia was down if not out. So allow me a flashback to the early 1990s. I had been on the road in Asia for months, from all points Southeast Asia to India, Nepal, the Himalayas and the eastern Chinese seaboard. Then I finally hit Beijing - waiting in the bitter winter of early 1992 to take the Trans-Siberian to Moscow. I was barely aware of the collapse of the Soviet Union - not exactly a news item in the Himalayas. I was also fortunate enough to be in southern China just a few days after Deng Xiaoping made his famous tour - whose key consequence was to catapult the dragon to dizzying development heights. A look back to those heady times may have the merit of illuminating our present. All aboard the night train  It's 8:32 pm in Beijing Railway Station, and the Trans-Manchurian Train 19 to Moscow is about to depart. It's minus 9 degrees Celsius. A bunch of Romanian crazies are trying to load more than 20 huge, vaguely green bundles stuffed with Made-in-China gear into one of the carriages. The Russian comptroller spouts out a "Nyet". Romanian chicks immerse in Transylvanic hysteria. Then a stash of George Washingtons changes hands at the final whistle, just in time for PLA soldiers and lady sweepers sporting the ubiquitous red armband with the words "Serve The People" to impassibly observe the happy ending. A cacophony of Russians, Poles, Romanians, Czechs and Mongols has deployed dozens of bags, bundles and sacks to totally overload the train corridors. 300 kg of shoes. 500 kg of jackets. 200 kg of T-shirts. Thousands of beauty cream pots that will be all the rage from Bucharest to Cracow. A "bed" on the train is a concavity over one of the bundles. That will be story for six days, across over 9,000 snowy kilometers in the former USSR, now Russia, from East to West. At the comptroller's compartment, more bags - whose content will be sold in the streets of Moscow. With so many George Washingtons in sight, the success of her bazaar is guaranteed - what with multiple stops on the way and an unregulated "free" market in every platform. The whole of Eastern Europe is loaded with stuff and dying to make a quick buck. In the Chinese stretch of the journey, nothing happens, unlike the 1930s, when Japan occupied Manchuria, installed puppet Pu Yi on the throne and was ready to take over Asia. The Terminator action starts in Zabaikalsk, at the Russian-China border - after we cross a huge Arc of Triumph in cement, complete with Leninist motto and not-yet-destroyed hammer and sickle. Customs - on both sides - is absolutely deserted. The train changes configuration to adapt to the new tracks. Yet all sights are set on the new dining car; exit Chinese, which only offered a miserable pork with soya sauce; enter Russian, crammed with goulash, soup, salami, frozen fish, black caviar, champagne from Crimea, coffee, eggs, even cheese - everything on the black market paid with US dollars. With the border behind us, it's go-go bazaar time. Everyone freaks out, because we instantly move from Beijing time to Moscow time. Sunrise is at 1 in the morning. The black market is running at $1 = 110 roubles, the rouble in free fall as we cut through the sublime snowy infinite desert of the Siberian tundra, where each spectacular sunrise under a slight Arctic fog is an epiphany celebrated with more Crimea champagne. Occasionally we spot reindeers or even huskies. The taiga - coveted by Japan, Korea and the US - is enveloped in snow. Beyond lay the ghosts of the 20 million corpses in Stalin's gulags, the hunters of the rare Amu tiger (fewer than 200 left) and the sinister Norilsk complex; 2 million tons a year of sulphuric acid and other heavy metals dumped in the atmosphere - the reason for that Arctic fog. The train stops stretch for 15 and even 20 minutes, reaching a nadir in Novosibirsk and Perm, which previously housed a notorious gulag. At every stop, hordes of Russians in Genghis Khan mode attack the train with little plastic bags. The best deal in the Trans-Siberian is anoraks and leather jackets. Jao, from Beijing, sells 50 in three days, at up to US$50 each; she paid $20 each in the Beijing hutongs. The Russians buy everything in sight and sell roubles - now plunging to 160 to the US dollar - as well as vodka, beer, salami, champagne and local $1 Pepsi bottles. The whole of Eastern Europe has taken over Train 19. Post-Ceausescu Romanians are the most exuberant - from former boxers to hookers to a seedy gangster in a tracksuit boasting about his two hours with a Russian doll for $10 (the going rate is $20). There's an Albanian contingent, young Polish students, shirtless Mongol nomads feverishly counting their profits, babushkas bored to death and even a loquacious Chinese dandy. The Russian carriages, once elegant, are a mess: foul air, dense cigarette smoke, drenched in sweat, toilets crammed with sacks, and "Kapitan", the only waiter, trying to make a quick buck selling Soviet paraphernalia. I find it the ideal setting to devour almost 1,000 pages of Norman Mailer's Harlot's Ghost, a history of the CIA. Blame it on glasnost Train 19 is not only a bazaar but also a multinational Agora. Young Russians elaborate how the almost genius perversity of the Soviet system led it to boost to the limit all the problems of modern industrial societies - offering nearly none of its benefits. Eastern Europeans volunteer that it was not the Cold War that finished off "real socialism"; it was the invasion of the capitalist economy combined with the inefficiency and "stupidity" (copyright by a Polish undergraduate) of the socialist economy. Russians say that glasnost finished off authority and perestroikafinished off the economy - and there was nothing to replace either. End result: physics graduates selling caviar tins in a moving train for survival. Everyone praises Gorbachev but essentially condemn him to a short historical footnote. In the train, I heard arguments that would be reproduced years later in countless US academic studies. All the Trans-Siberian navigators exhibit a solidarity not to be found at the United Nations; they exchange currencies, swap addresses, lend money and the indispensable calculators, help to load and unload the loot, accept bundles in their compartment, offer their places for half an hour for those who only have the corridor to sleep, and crack jokes about the small Bank of China yuan bills. They are all ardent defenders of this unheard of form of direct democracy that is synonym with the end of the Cold War. Amid the casino lurks the most improbable character: Lulu, a diminutive Bangladeshi, always attached to a Samsonite, dabbling in Allah-only-knows mysterious activities, passport filled with dodgy visas, Saudi Arabian included. Chinese and Russians treat him like an allergic Pekingese. Train chow is predictably unbearable for this strict Muslim, who wakes us all up everyday at 5 am with his prayers - Rashid Muhammad spends six days literally on bread and water. Skolka? That's the Trans-Manchurian bazaar motto, a preview of Moscow. Pink Floyd launched the legendary Dark Side of the Moon at the height of the Brejnev era; Moscow suburbs look like the ghostly, dark side of the moon. Stalin's lunatic legacy is alleviated only by a solitary kiosk selling flowers, fruit or sweet Georgia brandy. We arrive as zombies - and only a few hours late - at Yaroslavlsky Vakzal, one of nine Moscow train stations, where a deluge of Volga taxis fight for the precious Chinese cargo. Those moving on to Eastern Europe without a reservation are doomed: seats for Warsaw and Berlin are only available in 40 days. In Shenzhen, Guangzhou, Shanghai and Beijing, I had witnessed the spectacular success of post-Tiananmen Chinese "market socialism", where the economy was the locomotive and politics was dispatched to the bottom end of the train. Nothing more astonishing than the contrast with Moscow, where politics was the locomotive. I'm housed by Dmitri, an odontology student, three metro stops from the Kremlin, paying $6 a day, a small fortune; he and his girlfriend precariously subdivide the two-bedroom, one-bathroom apartment with a whole family, dog included, besides the occasional Western visitors, who sleep in the master bedroom. This is considered an upper middle-class lifestyle. At the beautiful metro stations, it's the return of the Trans-Siberian bazaar; on sale are political or porno samizdats, second-hand clothes, bottles of every possible liquid. Only when I reach Red Square doI see the light; at the Himalayas and China, my time-zone was still on Gorbachev. What's now at the top of the Kremlin is a Russian flag - as well as in the center of Dzerzhinsky square, in front of the KGB. As a perfect idiot, I aim for the statue of Felix Dzerzhinsky, the former head of the Soviet secret police, only to be warned by a student that it had been torn down weeks ago. Gorbachev is now a vodka brand. And I can't get inside the KGB building. The whole city is converted into a giant Turkish bazaar. After Boris Yeltsin liberated the sidewalks, everyone wants to exercise thisprivatizatsiya thing. Until 1990, nobody knew what a checkbook or a credit card was, and $1 was equivalent to 1 rouble. There are absolutely astonishing street markets on Prospekt Marka and Gorki street, everyone silently in line exhibiting their wares; a broken doll, a solitary shoe, dusty champagne bottles, perfume, instant coffee, sardine tins, an empty beer bottle. The streets are filled with all the stuff brought by the Trans-Siberian navigators, but the supermarkets are empty. There's very little milk or meat, but lots of canned fish and interminable lines to buy nothing - with potential consumers resigned to play chess. The biggest hit in town is the new McDonald's on Pushkin square - one of the busiest in the world, selling full meals for 50 cents by cashiers sporting an Eva Herzigova smile. In front of the MacD, a paper Gorbie poses for tourists, and a crowd sells caviar tins for $5 and champagne for $3. At the GUM department store, there is not much except a few Sony and Honda showrooms and a new Dior window. The recent past does not let go; it's impossible to call Europe. It's impossible to send a fax from the Post Office. It's impossible to make a train reservation. It's impossible to make a plane reservation - at least on the Aeroflot shop in Lubyanka; only at the cavernous Intourist Hotel. At the lugubrious ground floor of the Mockba Hotel, deaf and dumb characters straight out of an Ionesco play crowd the corridors while a beer black-market does brisk business in front of the hotel bar. A glass of champagne goes for 50 cents. At the hall of the legendary Metropol - the 1899 Grand Dame favored by Trotsky - a dry martini is a steep $7,70. The Metropol is the new Wall Street; Danes, Italians, Americans and Chinese discuss all deals this side of a Brave New World downing Heinekens at $5 a pop. On Armed Forces Day, a Sunday, there's a communist demonstration, repressed with tact, boasting large numbers of old ladies carrying flowers and flags. For their part, Moscow punks with anarchist flags protest against the Armed Forces. A pre-historic Volga takes me to Sheremetyevo as if I was running from a 1950s Cold War B-movie set. The Volga gurgles, stops, cools off, runs, gurgles, stops again, cools off; a metaphor of the new Russia, and I almost miss Aeroflot SU 576 back to Paris. Nothing will ever be the (unipolar) same  Those were the days. That McDonald's - symbol of unipolar, "end of history", Pax Americana - has been recently shut down. It's harder and harder for the Empire of Chaos to rule the world alone while McDonald's serves burgers. Across Pushkin square, the fashionable Cafe Pouchkine now serves the best of Russian haute cuisine. And still, both Russia and China are seen as pariahs by the unipolar, imperial elite. It's as if we were still frozen in those early1990s days. Russia and China may have changed almost beyond recognition - but for the Empire of Chaos the priorities are to tear Russia apart, starting with Ukraine, and "pivot to Asia" via an anti-China military/economic axis in the Western Pacific. Meanwhile, the Trans-Siberian will soon be linked with the Chinese-driven New Silk Roads. And then one day in the early 2020s this will all be a high-speed rail network, linking Eurasia in a flash. And nothing will ever be the (unipolar) same. Except for the back-to-Russia Crimean champagne. Pepe Escobar is the author of Globalistan: How the Globalized World is Dissolving into Liquid War (Nimble Books, 2007), Red Zone Blues: a snapshot of Baghdad during the surge (Nimble Books, 2007), and Obama does Globalistan (Nimble Books, 2009). He may be reached at pepeasia@yahoo.com.

RT: Wall Street rip-offs

RT: Wall Street rip-offs

CPAs MIA by Ralph Nader

CPAs MIA

by Ralph Nader

Where were the giant accounting firms, the CPAs, and the rest of the accounting profession while the Wall Street towers of fraud, deception and cover-ups were fracturing our economy, looting and draining trillions of dollars of other peoples' money?

This is the licensed profession that is paid to exercise independent judgment with independent standards to give investors, pension funds, mutual funds, and the rest of the financial world accurate descriptions of corporate financial realities.

It is now obvious that the accountants collapsed their own skill, integrity and self-respect faster and earlier than the collapse of Wall Street and the corporate barons. The accountants-both external and internal-could have blown the whistle on what Teddy Roosevelt called the "malefactors of great wealth."

The Big Four auditors knew what was going on with these complex, abstractly structured finance instruments, these collateralized debt obligations (CDOs) and other financial products too abstruse to label. They were on high alert after early warning scandals involving Long Term Capital Management, Enron, and others a decade or so ago.

These corporate casino capitalists used the latest tricks to cook the books with many of the on-balance sheet or off-balance sheet structured investment vehicles that metastasized big time in the first decade of this new century. These big firms can't excuse themselves for relying on conflicted rating companies, like Moody's or Standard & Poor, that gave triple-A ratings to CDO tranches in return for big fees. Imagine the conflict. After all, "prestigious" outside auditors were supposed to be on the inside incisively examining the books and their footnotes, on which the rating firms excessively relied.

Let's be specific with names. Carl Olson, chairman of the Fund for Stockowners Rights wrote in the letters column of The New York Times Magazine (January 28, 2009) that "PricewaterhouseCoopers O.K.'d AIG and FreddieMac. Deloitte & Touche certified Merrill Lynch and Bear Stearns. Ernst & Young vouched for Lehman Brothers and IndyMac Bank. KPMG assured over Countrywide and Wachovia. These ‘Big Four' C.P.A. firms apparently felt they could act with impunity."

"Undoubtedly they knew that the state boards of accountancy," continued Mr. Olson, "which granted them their licenses to audit, would not consider these transgressions seriously. And they were right...Not one of them has taken up any serious investigation of the misbehaving auditors of the recent debacle companies."

"Misbehaving" is too kind a word. The "Big Four" destroyed their very reason for being by their involvement in these and other boondoggles that have made headlines and dragooned our federal government into bailing them out with disbursements, loans and guarantees totaling trillions of dollars. "Criminally negligent" is a better phrase for what these big accounting firms got rich doing-which is to look the other way.

Holding accounting firms like these accountable is very difficult. It got more difficult in 1995 when Congress passed a bill shielding them from investor lawsuits charging that they "aided and abetted" fraudulent or deceptive schemes by their corporate clients. Clinton vetoed the legislation, but Senator Chris Dodd (D-CT) led the fight to over-ride the veto.

Moreover, the under-funded and understaffed state boards of accountancy are dominated by accountants and are beyond inaction. What can you expect?

As for the Securities and Exchange Commission (SEC), "asleep at the switch for years" would be a charitable description of that now embarrassed agency whose mission is to supposedly protect savers and shareholders. This agency even missed the massive Madoff Ponzi scheme.

The question of accounting probity will not go away. In the past couple of weeks, the non-profit Financial Accounting Standards Board (FASB)-assigned to be the professional conscience of accountancy-buckled under overt pressure from Congress and the banks. It loosened the mark-to-market requirement to value assets at fair market value or what buyers are willing to pay.

This decision by the FASB is enforceable by the SEC and immediately "cheered Wall Street" and pushed big bank stocks upward. Robert Willens, an accounting analyst, estimated this change could boost earnings at some banks by up to twenty percent. Voilà, just like that. Magic!

Overpricing depressed assets may make bank bosses happy, but not investors or a former SEC Chairman, Arthur Levitt, who was "very disappointed" and called the FASB decision "a step toward the kind of opaqueness that created the economic problems that we're enduring today."

To show the deterioration in standards, banks tried to get the FASB and the SEC in the 1980s to water down fair-value accounting during the savings and loan failures. Then-SEC Chairman Richard Breeden refused outright. Not today.

Former SEC chief accountant, Lynn Turner, presently a reformer of his own profession, supports mark-to-market or fair value accounting as part of bringing all assets and liabilities, including credit derivatives, back on the balance sheets of the financial firms. He wants regulation of the credit rating agencies, mortgage originators and the perverse incentives that lead to making bad loans. He even wants the SEC to review these new financial products before they come to market, eliminating "hidden financing."

Now comes the life insurance industry, buying up some small banks to qualify for their own large federal bailouts for making bad, risky speculations.

The brilliant Joseph M. Belth, writing in his astute newsletter, the Insurance Forum (May 2009), noted that life insurers are lobbying state insurance departments to weaken statutory accounting rules so as to "increase assets and/or decrease liabilities." Some states have already caved. Again, voilà, suddenly there is an increase in capital. Magic. Here we go again.

Who among the brainy, head up accountants, in practice or in academia, will join with Lynn Turner and rescue this demeaned, chronically rubber-stamping "profession," especially the "Big Four," from its pathetic pretension for which tens of millions of people are paying dearly?

Ralph Nader is a consumer advocate, lawyer, and author. His most recent book is The Seventeen Traditions.

If We Bail Out the Banks, Why Shouldn't We Own Them?

Sliding Down in Anger

By SAUL LANDAU

“I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around the banks will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered.”

-- Thomas Jefferson, 1802

"It’s worse than you can imagine,” a Member of Congress confided to me, referring to the downward spiral of the economy. “We just gave all those hundreds of billions to the bankers so they would lend it and they didn’t lend it and they still want more. The bankers don’t know what they’re doing and Tim Geithner [Treasury Secretary] doesn’t know what he’s doing. We all know this is the worst economic slump of our lifetime.”

While the arcane Washington budget processes – each Senator and Member trying to grab something for his or her district or State -- unfold, the poor should start to worry. They have already lost or about to be lose homes, jobs and health care. The propertied classes focus on their major concern: their property, which stands immeasurably higher in their moral guidelines than the lives and welfare of those without or with less.

The remaining masters of the universe on Wall Street still cling to the idea of their own infallibility. “El Duce is always right,” Mussolini said about himself – before the Partisans hanged him.

The capitalists oddly enough believe in capitalism and have done all in their power to spread the word. Their public promoters convinced lots of working people that capitalism and the American flag go together. Capitalism means freedom, so the very notion of nationalizing banks – forget socialism – looms in their minds as akin to the Holocaust.

The big bankers and their corporate brethren have connected to political power, one step below them, by simply throwing money at politicians who eagerly catch it. They also endow think tanks whose mavens will then explain to the gullible public why the United States needs perpetual war – to spread freedom (capitalism).

Count the victims of this cavalier assumption. Since the 1950-3 Korean War, US forces have overthrown -- or attempted to -- governments by force and violence in Vietnam, Laos, Cambodia, Chile, the Dominican Republic, El Salvador, Nicaragua, Brazil, Iran and Indonesia. They encouraged military coups in countless other nations in the third world.

Until the Soviet Union collapsed in the early 1990s, the battle against communism justified the interventions. The Reds have since been replaced as the demon by the Terrorists. Thus, Afghanistan and Iraq join the victim nations, with Pakistan inching its way onto the list.

The wars cost the lives of countless US servicemen and women and many more of the natives -- in the name of protecting freedom. To question the worthiness of service in any of the wars – Korea, Vietnam, the Persian Gulf--became tantamount to questioning the flag itself.

The mantra that surrounds the start of all the new wars remains numbingly in place. The President asks young people to fight because the nation’s freedom is at risk. Having said the magic words, the President then goes on to suck money from the taxpayers to “win” the noble struggle. Official language assumes “we” are good and those opposing us are bad. Listen to what Gen. David Petraeus, commander of U.S. forces in the Middle East, told US and European attendees at a security conference. “To win in the Afghanistan-Pakistan war, we need to identify and separate the ‘irreconcilables’ from the ‘reconcilables,’ striving to create the conditions that can make the ‘reconcilables’ part of the solution, even as we kill, capture, or drive out the irreconcilables.” (Remarks at 45th Munich Security Conference, February 8, 2009) Imagine a top British general in 1776 making similar remarks to his fellow officers regarding the populace in the American colonies!

“Reconcilables” means those the United States can buy or intimidate to collaborate with its policy goals. Some people would call them traitors. Later, after US forces withdraw and the “friendlies” become pariahs in their own country, the US government might reconcile itself to bring a few of them to the United States -- as they did with some members of the Hmong people after the Vietnam War.

Bush sent troops to Afghanistan in October 2001 to find and kill Osama bin Laden. Somehow the mission has changed into one of making Afghans reconcile to a US-designed order. This has not worked in Korea, Vietnam or anywhere else where US troops tried to export our – now sinking – way of life to people with different cultures. But it has been expensive.

The harsh fact, unmentioned in the US media, is that the United States, with its vast technological superiority and military power did not win in Korea or Vietnam, cut and ran in Laos and left Cambodia in such a mess that the bloody Khmer Rouge could take power there and slaughter a percentage of the population. Similarly, Washington policy “experts” do not reflect on the fact that all the CIA coups yielded little of permanence. Indeed, the blowback from CIA coups in Iran and Guatemala are still evolving.

The coups in Brazil and Chile have eroded military power in those countries and brought to the presidency socialists who have defied Washington – something that would not have been permitted fifty years ago. But how many of the powerful in the nation’s capital ask the question as budget time comes around: how can we afford to continue spending on wars we never seem to win when the state of our own economy is in virtual collapse?

The current military budget maintains “268 bases in Germany, 124 in Japan, and 87 in South Korea. Others are scattered around the globe in places like Aruba and Australia, Bulgaria and Bahrain, Colombia and Greece, Djibouti, Egypt, Kuwait, Qatar, Romania, Singapore, and of course, Guantánamo Bay, Cuba -- just to name a few. Among the installations considered critical to our national security are a ski center in the Bavarian Alps, resorts in Seoul and Tokyo, and 234 golf courses the Pentagon runs worldwide.” (David Vine, “The Costs of Empire: Can We Really Afford 1,000 Overseas Bases?” FPIF, March 10)

As the Congressman assured me, “the only thing that can put a halt to this military spree is for the public to get wind of how much were pissing away on this overseas nonsense. My God, it’s going to cost more trillions of dollars than we see in this round of bailouts. People have to start asking of the military budget just as they ask of the bank bailouts: do these expenditures really keep us stable?”

The rich and powerful think mainly about preserving and expanding their wealth and power. President Obama must realize that under the emergency powers of his office, he not only has the authority to seize our assets, but also has access to all the assets of America’s richest men for meeting those emergencies that threaten the common good.

It has become apparent to millions of people that the nation faces a severe crisis. One year ago, who could have predicted Congress would bailout banks and monster sized insurance giants, that GM would teeter on the brink of bankruptcy and our fabled way of life would become a joke for millions of recently foreclosed families?

Soon, lots of people will ask: If we bail out the banks then why shouldn’t we control them -- or even own them? The bankers screwed up. Why should they get any of our money? Maybe they’ll even question why Congress should continue funding a massive military institution that hasn’t won a real war since 1945 to the tune of some three quarters of a trillion dollars a year?

Saul Landau is an IPS Fellow, author of A BUSH AND BOTOX WORLD (Counterpunch) and director of forty films, available on dvd from roundworldproductions.com