THE ROVING EYE Russia, China mock divide and rule By Pepe Escobar

THE ROVING EYE Russia, China mock divide and rule By Pepe Escobar ROME and BEIJING - The Roman Empire did it. The British Empire copied it in style. The Empire of Chaos has always done it. They all do it. Divide et impera. Divide and rule - or divide and conquer. It's nasty, brutish and effective. Not forever though, like diamonds, because empires do crumble. A room with a view to the Pantheon may be a celebration of Venus - but also a glimpse on the works of Mars. I had been in Rome essentially for a symposium - Global WARning - organized by a very committed, talented group led by a former member of European Parliament, Giulietto Chiesa. Three days later, as the run on the rouble was unleashed, Chiesa was arrested and expelled from Estonia as persona non grata, yet another graphic illustration of the anti-Russia hysteria gripping the Baltic nations and the Orwellian grip NATO has on Europe's weak links. [1] Dissent is simply not allowed. At the symposium, held in a divinely frescoed former 15th century Dominican refectory now part of the Italian parliament's library, Sergey Glazyev, on the phone from Moscow, gave a stark reading of Cold War 2.0. There's no real "government" in Kiev; the US ambassador is in charge. An anti-Russia doctrine has been hatched in Washington to foment war in Europe - and European politicians are its collaborators. Washington wants a war in Europe because it is losing the competition with China. Glazyev addressed the sanctions dementia: Russia is trying simultaneously to reorganize the politics of the International Monetary Fund, fight capital flight and minimize the effect of banks closing credit lines for many businessmen. Yet the end result of sanctions, he says, is that Europe will be the ultimate losers economically; bureaucracy in Europe has lost economic focus as American geopoliticians have taken over. Only three days before the run on the rouble, I asked Rosneft's Mikhail Leontyev (Press-Secretary - Director of the Information and Advertisement Department) about the growing rumors of the Russian government getting ready to apply currency controls. At the time, no one knew an attack on rouble would be so swift, and conceived as a checkmate to destroy the Russian economy. After sublime espressos at the Tazza d'Oro, right by the Pantheon, Leontyev told me that currency controls were indeed a possibility. But not yet. What he did emphasize was this was outright financial war, helped by a fifth column in the Russian establishment. The only equal component in this asymmetrical war was nuclear forces. And yet Russia would not surrender. Leontyev characterized Europe not as a historical subject but as an object: "The European project is an American project." And "democracy" had become fiction. The run on the rouble came and went like a devastating economic hurricane. Yet you don't threat a checkmate against a skilled chess player unless your firepower is stronger than Jupiter's lightning bolt. Moscow survived. Gazprom heeded the request of President Vladimir Putin and will sell its US dollar reserves on the domestic market. German Foreign Minister Frank-Walter Steinmeier went on the record against the EU further "turning the screw" as in more counterproductive sanctions against Moscow. And at his annual press conference, Putin emphasized how Russia would weather the storm. Yet I was especially intrigued by what he did not say. [2] As Mars took over, in a frenetic acceleration of history, I retreated to my Pantheon room trying to channel Seneca; from euthymia - interior serenity - to that state of imperturbability the Stoics defined as aponia. Still, it's hard to cultivate euthymia when Cold War 2.0 rages. Show me your imperturbable missile Russia could always deploy an economic "nuclear" option, declaring a moratorium on its foreign debt. Then, if Western banks seized Russian assets, Moscow could seize every Western investment in Russia. In any event, the Pentagon and NATO's aim of a shooting war in the European theater would not happen; unless Washington was foolish enough to start it. Still, that remains a serious possibility, with the Empire of Chaos accusing Russia of violating the Intermediate-Range Nuclear Forces Treaty (INF) even as it prepares to force Europe in 2015 to accept the deployment of US nuclear cruise missiles. Russia could outmaneuver Western financial markets by cutting them off from its wealth of oil and natural gas. The markets would inevitably collapse - uncontrolled chaos for the Empire of Chaos (or "controlled chaos", in Putin's own words). Imagine the crumbling of the quadrillion-plus of derivatives. It would take years for the "West" to replace Russian oil and natural gas, but the EU's economy would be instantly devastated. Just this lightning-bolt Western attack on the rouble - and oil prices - using the crushing power of Wall Street firms had already shaken European banks exposed to Russia to the core; their credit default swaps soared. Imagine those banks collapsing in a Lehman Brothers-style house of cards if Russia decided to default - thus unleashing a chain reaction. Think about a non-nuclear MAD (Mutually Assured Destruction) - in fact warless. Still, Russia is self-sufficient in all kinds of energy, mineral wealth and agriculture. Europe isn't. This could become the lethal result of war by sanctions. Essentially, the Empire of Chaos is bluffing, using Europe as pawns. The Empire of Chaos is as lousy at chess as it is at history. What it excels in is in upping the ante to force Russia to back down. Russia won't back down. Darkness dawns at the break of chaos  Paraphrasing Bob Dylan in When I Paint My Masterpiece, I left Rome and landed in Beijing. Today's Marco Polos travel Air China; in 10 years, they will be zooming up in reverse, taking high-speed rail from Shanghai to Berlin. [3] From a room in imperial Rome to a room in a peaceful hutong - a lateral reminiscence of imperial China. In Rome, the barbarians swarm inside the gates, softly pillaging the crumbs of such a rich heritage, and that includes the local Mafia. In Beijing, the barbarians are kept under strict surveillance; of course there's a Panopticon element to it, essential to assure internal social peace. The leadership of the Chinese Communist Party (CCP) - ever since the earth-shattering reforms by the Little Helmsman Deng Xiaoping - is perfectly conscious that its Mandate of Heaven is directly conditioned by the perfect fine-tuning of nationalism and what we could term "neoliberalism with Chinese characteristics". In a different vein of the "soft beds of the East" seducing Marcus Aurelius, the silky splendors of chic Beijing offer a glimpse of an extremely self-assured emerging power. After all, Europe is nothing but a catalogue of multiple sclerosis and Japan is under its sixth recession in 20 years. To top it off, in 2014 President Xi Jinping has deployed unprecedented diplomatic/geostrategic frenzy - ultimately tied to the long-term project of slowly but surely keeping on erasing US supremacy in Asia and rearranging the global chessboard. What Xi said in Shanghai in May encapsulates the project; "It's time for Asians to manage the affairs of Asia." At the APEC meeting in November, he doubled down, promoting an "Asia-Pacific dream". Meanwhile, frenzy is the norm. Apart from the two monster, US$725 billion gas deals - Power of Siberia and Altai pipeline - and a recent New Silk Road-related offensive in Eastern Europe, [4] virtually no one in the West remembers that in September Chinese Prime Minister Li Keiqiang signed no fewer than 38 trade deals with the Russians, including a swap deal and a fiscal deal, which imply total economic interplay. A case can be made that the geopolitical shift towards Russia-China integration is arguably the greatest strategic maneuver of the last 100 years. Xi's ultimate master plan is unambiguous: a Russia-China-Germany trade/commerce alliance. German business/industry wants it badly, although German politicians still haven't got the message. Xi - and Putin - are building a new economic reality on the Eurasian ground, crammed with crucial political, economic and strategic ramifications. Of course, this will be an extremely rocky road. It has not leaked to Western corporate media yet, but independent-minded academics in Europe (yes, they do exist, almost like a secret society) are increasingly alarmed there is no alternative model to the chaotic, entropic hardcore neoliberalism/casino capitalism racket promoted by the Masters of the Universe. Even if Eurasian integration prevails in the long run, and Wall Street becomes a sort of local stock exchange, the Chinese and the emerging multipolar world still seem to be locked into the existing neoliberal model. And yet, as much as Lao Tzu, already an octogenarian, gave the young Confucius an intellectual slap on the face, the "West" could do with a wake-up call. Divide et impera? It's not working. And it's bound to fail miserably. As it stands, what we do know is that 2015 will be a hair-raising year in myriad aspects. Because from Europe to Asia, from the ruins of the Roman empire to the re-emerging Middle Kingdom, we all still remain under the sign of a fearful, dangerous, rampantly irrational Empire of Chaos. Notes: 1. See here. 2. What Putin is not telling us, Russia Today, December 18, 2014. 3. Eurasian Integration vs. the Empire of Chaos, TomDispatch, December 16, 2014. 4. China set to make tracks for Europe, China Daily, December 18, 2014. China's Li cements new export corridor into Europe, Channel News Asia, December 16, 2014. Pepe Escobar's latest book, just out, is Empire of Chaos. Follow him on Facebook. 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 - China's silky road to glory By Pepe Escobar

THE ROVING EYE China's silky road to glory By Pepe Escobar If there were any remaining doubts about the unlimited stupidity Western corporate media is capable of dishing out, the highlight of the Asia-Pacific Economic Cooperation (APEC) summit in Beijing has been defined as Russian President Vladimir Putin supposedly "hitting" on Chinese President Xi Jinping's wife - and the subsequent Chinese censoring of the moment when Putin draped a shawl over her shoulders in the cold air where the leaders were assembled. What next? Putin and Xi denounced as a gay couple? Let's dump the clowns and get down to the serious business. Right at the start, President Xi urged APEC to "add firewood to the fire of the Asia-Pacific and world economy". Two days later, China got what it wanted on all fronts. 1) Beijing had all 21 APEC member-nations endorsing the Free Trade Area of the Asia-Pacific (FTAAP) - the Chinese vision of an "all inclusive, all-win" trade deal capable of advancing Asia-Pacific cooperation - see South China Morning Post (paywall). The loser was the US-driven, corporate-redacted, fiercely opposed (especially by Japan and Malaysia) 12-nation Trans-Pacific Partnership (TPP). [See also here. 2) Beijing advanced its blueprint for "all-round connectivity" (in Xi's words) across Asia-Pacific - which implies a multi-pronged strategy. One of its key features is the implementation of the Beijing-based US$50 billion Asian Infrastructure Investment Bank. That's China's response to Washington refusing to give it a more representative voice at the International Monetary Fund than the current, paltry 3.8% of votes (a smaller percentage than the 4.5% held by stagnated France). 3) Beijing and Moscow committed to a second gas mega-deal - this one through the Altai pipeline in Western Siberia - after the initial "Power of Siberia" mega-deal clinched last May. 4) Beijing announced the funneling of no less than US$40 billion to start building the Silk Road Economic Belt and the 21st Century Maritime Silk Road. Predictably, once again, this vertiginous flurry of deals and investment had to converge towards the most spectacular, ambitious, wide-ranging plurinational infrastructure offensive ever attempted: the multiple New Silk Roads - that complex network of high-speed rail, pipelines, ports, fiber optic cables and state of the art telecom that China is already building across the Central Asian stans, linked to Russia, Iran, Turkey and the Indian Ocean, and branching out to Europe all the way to Venice, Rotterdam, Duisburg and Berlin. Now imagine the paralyzed terror of the Washington/Wall Street elites as they stare at Beijing interlinking Xi's "Asia-Pacific Dream"way beyond East Asia towards all-out, pan-Eurasia trade - with the center being, what else, the Middle Kingdom; a near future Eurasia as a massive Chinese Silk Belt with, in selected latitudes, a sort of development condominium with Russia. Vlad doesn't do stupid stuff As for "Don Juan" Putin, everything one needs to know about Asia-Pacific as a Russian strategic/economic priority was distilled in his intervention at the APEC CEO summit. This was in fact an economic update of his by now notorious speech at the Valdai Club meeting in Sochi in October, followed by a wide-ranging Q&A, which was also duly ignored by Western corporate media (or spun as yet more "aggression"). The Kremlin has conclusively established that Washington/Wall Street elites have absolutely no intention of allowing a minimum of multipolarity in international relations. What's left is chaos. There's no question that Moscow pivoting away from the West and towards East Asia is a process directly influenced by President Barack Obama's self-described "Don't Do Stupid Stuff" foreign policy doctrine, a formula he came up with aboard Air Force One when coming back last April from a trip to - where else - Asia. But the Russia-China symbiosis/strategic partnership is developing in multiple levels. On energy, Russia is turning east because that's where top demand is. On finance, Moscow ended the pegging of the rouble to the US dollar and euro; not surprisingly the US dollar instantly - if only briefly - dropped against the rouble. Russian bank VTB announced it may leave the London Stock Exchange for Shanghai's - which is about to become directly linked to Hong Kong. And Hong Kong, for its part, is already attracting Russian energy giants. Now mix all these key developments with the massive yuan-rouble energy double deal, and the picture is clear; Russia is actively protecting itself from speculative/politically motivated Western attacks against its currency. The Russia-China symbiosis/strategic partnership visibly expands on energy, finance and, also inevitably, on the military technology front. That includes, crucially, Moscow selling Beijing the S-400 air defense system and, in the future, the S-500 - against which the Americans are sitting ducks; and this while Beijing develops surface-to-ship missiles that can take out everything the US Navy can muster. Anyway, at APEC, Xi and Obama at least agreed to establish a mutual reporting mechanism on major military operations. That might - and the operative word is "might" - prevent an East Asia replica of relentless NATO-style whining of the "Russia has invaded Ukraine!" kind. Freak out, neo-cons When Little Dubya Bush came to power in early 2001, the neo-cons were faced with a stark fact: it was just a matter of time before the US would irreversibly lose its global geopolitical and economic hegemony. So there were only two choices; either manage the decline, or bet the whole farm to consolidate global hegemony using - what else - war. We all know about the wishful thinking enveloping the "low-cost" war on Iraq - from Paul Wolfowitz's "We are the new OPEC" to the fantasy of Washington being able to decisively intimidate all potential challengers, the EU, Russia and China. And we all know how it went spectacularly wrong. Even as that trillionaire adventure, as Minqi Li analyzed in The Rise of China and the Demise of the Capitalist World Economy, "has squandered US imperialism's remaining space for strategic maneuver", the humanitarian imperialists of the Obama administration still have not given up, refusing to admit the US has lost any ability to provide any meaningful solution to the current, as Immanuel Wallerstein would define it, world-system. There are sporadic signs of intelligent geopolitical life in US academia, such as this at the Wilson Center website (although Russia and China are not a "challenge" to a supposed world "order": their partnership is actually geared to create some order among the chaos.) And yet this opinion piece at USNews is the kind of stuff passing for academic "analysis" in US media. On top of it, Washington/Wall Street elites - through their myopic Think Tankland - still cling to mythical platitudes such as the "historical" US role as arbiter of modern Asia and key balancer of power. So no wonder public opinion in the US - and Western Europe - cannot even imagine the earth-shattering impact the New Silk Roads will have in the geopolitics of the young 21st century. Washington/Wall Street elites - talk about Cold War hubris - always took for granted that Beijing and Moscow would be totally apart. Now puzzlement prevails. Note how the Obama administration's "pivoting to Asia" has been completely erased from the narrative - after Beijing identified it for what it is: a warlike provocation. The new meme is "rebalance". German businesses, for their part, are absolutely going bonkers with Xi's New Silk Roads uniting Beijing to Berlin - crucially via Moscow. German politicians sooner rather than later will have to get the message. All this will be discussed behind closed doors this weekend at key meetings on the sidelines of the Group of 20 in Australia. The Russia-China-Germany alliance-in-the-making will be there. The BRICS, crisis or no crisis, will be there. All the players in the G-20 actively working for a multipolar world will be there. APEC once again has shown that the more geopolitics change, the more it won't stay the same; as the exceptional dogs of war, inequality and divide and rule keep barking, the China-Russia pan-Eurasian caravan will keep going, going, going - further on down the (multipolar) road. 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 - Lame-duck Obama's brave new world By Pepe Escobar

THE ROVING EYE Lame-duck Obama's brave new world By Pepe Escobar Fresh out of his latest Congressional election shellacking delivered by the minority who bothered to vote in the United States, the formerly most powerful leader in the world, US President Barack Obama, will star in a thriller this weekend, appearing in the same room with China's Xi Jinping, Japan's Shinzo Abe and - fasten your seat belts - Russia's Vladimir Putin. What a drag - the Bomber-In-Chief must be musing. The global economy is mostly a disaster. China, even growing at "only" 7% a year, keeps eroding his "indispensable nation" aura. Japan has decided to copy the Federal Reserve and embark on its own kamikaze version of quantitative easing. Numerous Southeast Asian nations keep freaking out about a few rocks in the South China Sea. And last but not least, Obama's nemesis, pesky Vlad "the Hammer" Putin, has just been crowned Most Powerful Leader in the world - even if for the most stupid reasons ("unpredictable" head of a "rogue state") [1] - while he, the Nobel Peace Prize leader of the exceptionalist, indispensable nation, is now nothing but a pitiful lame duck. The get-together, extended to Monday and Tuesday, will be the highlight of the Asia-Pacific Economic Cooperation (APEC) summit in Beijing - actually, outside of Beijing, so presumably unpolluted blue skies may also have a chance at the photo op. This is APEC's 25th birthday. And the 20th birthday of the Indonesian summit in Bogor - I happened to be there - which, under Bill Clinton's flowery charm, set the 21-member APEC nations a goal of "free" and open trade and investment by 2020. "Free" as in US corporations dictating the rules, of course. What the whole planet really wants to know about APEC is whether The Lame Duck with meet The Bear face to face, one on one. The White House remains mum. The Kremlin did not rule it out. Well, there's always Plan B: the Group of 20 summit on November 15-16 in Brisbane, Australia. What the whole planet already knows is that the new slimy show premiering on Capitol Hill on January 2015 has a top priority: the Republicans will do everything in their power to make the lame duck cry for mercy over and over again. So what will this mean in terms of Obama's self-styled "Don't Do Stupid Stuff" foreign policy doctrine, which that 2016 juggernaut known as "The Hillarator" has already derided as a "non-organizational principle"? Just extra layers of cosmic stupidity, or something more substantial? That old axis of evil Let's start with The Caliph, aka Islamic State (IS) leader Abu Bakr al-Baghdadi. Obama already said, after his shellacking, he is going to seek Congressional authorization for his coalition of the cowards bombing IS - aka Islamic State of Iraq and Syria, Islamic State of Iraq and the Levant, or Daesh, the jiahdi outfit's Arabic acronym Now that's not a dumb move. If Republican-ruled Congress says "yes", they will be responsible for the fiasco (and it's already a fiasco). If they say "no", the fiasco can be attributed to their irresponsibility. Republicans are immersed in their own internal split - the boots-on-the-ground favored by the establishment against the non-interventionist Tea Party. So in the end, the lame duck may profit from it after all. Iran is a much dicier proposition. It all depends on a nuclear deal between Iran and the P5+1 (the five permanent members of the UN Security Council plus Germany) being reached in a little over two weeks, on November 24. That's a taller-than-the-Himalayas order, although feasible. The Obama administration is desperate for a deal - as the leak of a "secret letter" from Obama to Iran's Supreme Leader Ayatollah Khamenei attests. But a deal under Washington's terms, which for Tehran is unacceptable. [2] The new US Senate only takes over in January. Obama has already stressed he won't ask the Senate to ratify the deal. Once again, the problem is what deal? Obama's idea of a grand design in the Middle East is to use a "responsible" - according to US standards - Tehran to balance the Sunni-Shi'ite divide and get rid of the current proxy wars, the whole thing arbitrated by Washington. This is a pipe dream. But it's what the lame duck wants. Needless to say, Republicans - for whom Tehran never left the "axis of evil" - will try to bomb the dream, pipelines and all, for instance by passing legislation preventing the lifting of key sanctions. Sparks will fly. Tehran won't accept a nuclear deal where Washington just says "take my word for it, we will lift sanctions"; this has to be in the letter of the agreement. After all they have vast experience of dealing with gun-crazy Republicans in power. Nothing will change on Russia - even as the Obama administration needs Moscow to get a deal with Tehran. The relentless demonization of Putin and the resurgence of the same old Cold War meme, "The Russians are Coming", are guaranteed to keep propelling stupidity 24/7 to intergalactic spheres. Capitol Hill will go on overdrive. After all, Russia demonization is a bipartisan sport in Washington. The only "solution" would be regime change. Not only is Putin not going anywhere, but he's ratcheting up his defiance of the Empire of Chaos. This implies increased problems with Germany, where Chancellor Angela Merkel keeps appeasing the Americans while German businesses want increased trade with Russia and Eurasia as a whole. Another China win-win?  On trade, here's where APEC collides with the two-pronged US version of an economic NATO: the proposed Transatlantic Trade and Investment Partnership (TTIP) with Europe and the proposed Trans-Pacific Partnership (TPP) with Asia. What the Obama administration is fighting for is nothing less than a totally unregulated global marketplace. Imagine the "free" market - as Bill "Bubba" Clinton was already parading in Indonesia two decades ago - setting all sorts of standards on everything from working conditions to the environment. In theory, that's exactly what Republicans love. So here Obama would be right in their alley, which implies an easy Senate ratification. It's actually way more complicated. Republicans simply cannot stomach an Obama victory. That means this upcoming Senate won't give him the fast track he needs to clinch the TPP deal. That happens to be exactly what China wants. Beijing will use APEC to promote the road map for its own, anti-TPP trade deal, the Free Trade Area of the Asia-Pacific (FTAAP). TPP involves 12 APEC members - but not China. And even inside TPP there's a monster revolt; Tokyo is battling the US because they Japan is sure its auto industry and agriculture may be devoured by US corporations. So we're right into a titanic Transformer-style Battle of the Deals. In fact any deal is problematic, as China, Japan and South Korea may want, in principle, broader economic cooperation. But on trade, in so many levels, they are fiercely competing against each other - as in the auto industry and agriculture, for instance - not to mention that heavy historical baggage between Japan and China and Japan and South Korea. The Chinese charm offensive at APEC in Beijing is all about "innovative development", "building infrastructure investment" and "comprehensive connectivity". It's all a mirror image of the extremely ambitious New Silk Roads proposed by President Xi to connect Eurasia. Beijing is proposing a new "connectivity framework" into three key areas - "physical connectivity, institutional connectivity, and people-to-people connectivity". But still no one knows how this will work out in practice towards Asia integration. Washington doesn't care; it just wants a "free" unregulated mega-market for US corporations. Beijing sees Asian economic integration as APEC facilitating an FTAAP by 2025. Needless to say, the US and a few vassals aboard the TPP have been adamant that no regional deal jeopardizes TPP. Washington was betting on TPP being signed before APEC. It didn't happen. So Plan B is to boycott FTAAP until TPP is signed. And that Beijing won't allow. The lame duck will have to duck a lot on his one-on-one with Xi in Beijing. Finally, what about the Obama-Capitol Hill battle on the climate-change field? For the absolute majority of Republicans, climate change and global warming are nothing but an evil conspiracy. End of story. The lame duck and Capitol Hill at least may agree on - what else - the Global War on Terror. Pentagon supremo Defense Secretary Chuck Hagel recently said the US should get ready for endless wars, as "tyranny", "terrorism", national security challenges and - surprise! - climate change pose a substantial "threat". Since 2002, the Pentagon has been saying to anyone who was bothered to listen that Endless War is the only deal in town - or the universe, for that matter. The lame duck might even fraternize about it with his Republican nemeses over the odd round of golf. What a wonderful (lame duck) world this would be. Notes: 1. Putin Vs. Obama: The World's Most Powerful People 2014, Forbes, November 5, 2014. 2. Obama Wrote Secret Letter to Iran's Khamenei About Fighting Islamic State, Wall Street Journal Online (subscription). 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 future visible in St Petersburg By Pepe Escobar

THE ROVING EYE The future visible in St Petersburg By Pepe Escobar The unipolar model of the world order has failed.  - Vladimir Putin, St Petersburg, May 22 In more ways than one, last week heralded the birth of a Eurasian century. Of course, the US$400 billion Russia-China gas deal was clinched only at the last minute in Shanghai, on Wednesday (a complement to the June 2013, 25-year, $270 billion oil deal between Rosneft and China's CNPC.) Then, on Thursday, most of the main players were at the St Petersburg International Economic Forum - the Russian answer to Davos. And on Friday, Russian President Vladimir Putin, fresh from his Shanghai triumph, addressed the participants and brought the house down. It will take time to appraise last week's whirlwind in all its complex implications. Here are some of the St Petersburg highlights, in some detail. Were there fewer Western CEOs in town because the Obama administration pressured them - as part of the "isolate Russia" policy? Not many less; Goldman Sachs and Morgan Stanley may have snubbed it, but Europeans who matter came, saw, talked and pledged to keep doing business. And most of all, Asians were ubiquitous. Consider this as yet another chapter of China's counterpunch to US President Barack Obama's Asian tour in April, which was widely described as the "China containment tour". [1] On the first day at the St Petersburg forum I attended this crucial session on Russia-China strategic economic partnership. Pay close attention: the roadmap is all there. As Chinese Vice President Li Yuanchao describes it: "We plan to combine the program for the development of Russia's Far East and the strategy for the development of Northeast China into an integrated concept." That was just one instance of the fast-emerging Eurasia coalition bound to challenge the "indispensable" exceptionalists to the core. Comparisons to the Sino-Soviet pact are infantile. The putsch in Ukraine - part of Washington's pivot to "contain" Russia - just served to accelerate Russia's pivot to Asia, which sooner or late would become inevitable. It all starts in Sichuan In St Petersburg, from session to session and in selected conversations, what I saw were some crucial building blocks of the Chinese New Silk Road(s), whose ultimate aim is to unite, via trade and commerce, no less than China, Russia and Germany. For Washington, this is beyond anathema. The response has been to peddle a couple of deals which, in thesis, would guarantee American monopoly of two-thirds of global commerce; the Trans-Pacific Partnership (TPP) - which was essentially rebuked by key Asians such as Japan and Malaysia during Obama's trip - and the even more problematic Trans-Atlantic Partnership with the EU, which average Europeans absolutely abhor (see Breaking bad in southern NATOstan, Asia Times Online, April 15, 2014). Both deals are being negotiated in secret and are profitable essentially for US multinational corporations. For Asia, China instead proposes a Free Trade Area of Asia-Pacific; after all, it is already the largest trading partner of the 10-member Association of Southeast Asian Nations (ASEAN). And for Europe, Beijing proposes an extension of the railway that in only 12 days links Chengdu, the capital of Sichuan, to Lodz in Poland, crossing Kazakhstan, Russia and Belarus. The total deal is the Chongqing-Xinjiang-Europe network, with a final stop in Duisburg, Germany. No wonder this is bound to become the most important commercial route in the world. [2] There's more. One day before the clinching of the Russia-China gas deal, President Xi Jinping called for no less than a new Asian security cooperation architecture, including of course Russia and Iran and excluding the US. [3] Somehow echoing Putin, Xi described NATO as a Cold War relic. And guess who was at the announcement in Shanghai, apart from the Central Asian "stans": Iraqi Prime Minister Nouri al-Maliki, Afghan President Hamid Karzai and crucially, Iranian President Hassan Rouhani. The facts on the ground speak for themselves. China is buying at least half of Iraq's oil production - and is investing heavily in its energy infrastructure. China has invested heavily in Afghanistan's mining industry - especially lithium and cobalt. And obviously both China and Russia keep doing business in Iran. [4] So this is what Washington gets for over a decade of wars, incessant bullying, nasty sanctions and trillions of misspent dollars. No wonder the most fascinating session I attended in St Petersburg was on the commercial and economic possibilities around the expansion of the Shanghai Cooperation Organization (SCO), whose guest of honor was none other than Li Yuanchao. I was arguably the only Westerner in the room, surrounded by a sea of Chinese and Central Asians. The SCO is gearing up to become something way beyond a sort of counterpart to NATO, focusing mostly on terrorism and fighting drug trafficking. It wants to do major business. Iran, India, Pakistan, Afghanistan and Mongolia are observers, and sooner rather than later will be accepted as full members. Once again that's Eurasian integration in action. The branching out of the New Silk Road(s) is inevitable; and that spells out, in practice, closer integration with Afghanistan (minerals) and Iran (energy). The new Crimea boom St Petersburg also made it clear how China wants to finance an array of projects in Crimea, whose waters, by the way, boasting untold, still unexplored, energy wealth, are now Russian property. Projects include a crucial bridge across the Kerch Strait to connect Crimea to mainland Russia; expansion of Crimean ports; solar power plants; and even manufacturing special economic zones (SEZs). Moscow could not but interpret it as Beijing's endorsement of the annexation of Crimea. As for Ukraine, it might as well, as Putin remarked in St Petersburg, pay its bills. [5] And as for the European Union, at least outgoing president of the European Commission Jose Manuel Barroso understood the obvious: antagonizing Russia is not exactly a winning strategy. Dmitry Trenin, director of the Carnegie Moscow Center, has been one of those informed few advising the West about it, to no avail: "Russia and China are likely to cooperate even more closely ... Such an outcome would certainly benefit China, but it will give Russia a chance to withstand US geopolitical pressure, compensate for the EU's coming energy re-orientation, develop Siberia and the Far East, and link itself to the Asia-Pacific region." [6] On the (silk) road again The now symbiotic China-Russia strategic alliance - with the possibility of extending towards Iran [7] - is the fundamental fact on the ground in the young 21st century. It will extrapolate across the BRICS, the Shanghai Cooperation Organization, the Collective Security Treaty Organization and the Non-Aligned Movement. Of course the usual shills will keep peddling that the only possible future is one led by a "benign" empire. [8] As if billions of people across the real world - even informed Atlanticists - would be gullible enough to buy it. Still, unipolarity may be dead, but the world, sadly, is encumbered with its corpse. The corpse, according to the new Obama doctrine, is now "empowering partners". To paraphrase Dylan ("I left Rome and landed in Brussels"), I left St Petersburg and landed in Rome, to follow yet another episode in the slow decadence of Europe - the parliamentary elections. But before that, I was fortunate to experience an aesthetic illumination. I visited a virtually deserted Institute of Oriental Manuscripts of the Russian Academy of Sciences, where two dedicated, extremely knowledgeable researchers gave me a private tour of some pieces belonging to arguably the most outstanding collection of Asian manuscripts on the planet. As a serial Silk Road traveler fanatic, I had heard about many of those documents, but I had never actually seen them. So there I was, on the banks of the Neva, a kid in a (historical) candy store, immersed in all those marvels from Dunhuang to Mongolia, in Vedic or Sanskrit, dreaming of Silk Roads past and future. I could stay there forever. Notes: 1. China Thwarts U.S. 'Containment' With Vietnam Oil Rig Standoff, Forbes, May 8, 2014. 2. Le president chinois appelle la Chine et l'Allemagne - construire la ceinture economique de la Route de la Soie (in French), Xinhua, March 30, 2014. 3. China calls for new Asian security structure, Washington Post, May 21, 2014. 4. Russia plans to build up to eight new nuclear reactors in Iran, Reuters, May 22, 2014. 5. Naftogaz Debt to Gazprom Stands at $4 Bln - EU Energy Commissioner, Ria Novosti, May 28, 2014. 6. See here. 7. China, Iran and Russia: Restructuring the global order, Al Jazeera, May 20, 2014. 8. In Defense of Empire, The Atlantic, March 19, 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.

Ukraine and the grand chessboard By Pepe Escobar

THE ROVING EYE Ukraine and the grand chessboard By Pepe Escobar The US State Department, via spokeswoman Jennifer Psaki, said that reports of CIA Director John Brennan telling regime changers in Kiev to "conduct tactical operations" - or an "anti-terrorist" offensive - in eastern Ukraine are "completely false". This means Brennan did issue his marching orders. And by now the "anti-terrorist" campaign - with its nice little Dubya rhetorical touch - has degenerated into farce. Now couple that with NATO secretary general, Danish retriever Anders Fogh Rasmussen, yapping about the strengthening of military footprint along NATO's eastern border: "We will have more planes in the air, mores ships on the water and more readiness on the land." Welcome to the Two Stooges doctrine of post-modern warfare. Pay up or freeze to death Ukraine is for all practical purposes broke. The Kremlin's consistent position for the past three months has been to encourage the European Union to find a solution to Ukraine's dire economic mess. Brussels did nothing. It was betting on regime change to the benefit of Germany's heavyweight puppet Vladimir Klitschko, aka Klitsch The Boxer. Regime change did happen, but orchestrated by the Khaganate of Nulands - a neo-con cell of the State Department and its assistant secretary of state for European and Eurasian Affairs Victoria Nulands. And now the presidential option is between - what else - two US puppets, choco-billionaire Petro Poroshenko and "Saint Yulia" Timoshenko, Ukraine's former prime minister, ex-convict and prospective president. The EU is left to pick up the (unpayable) bill. Enter the International Monetary Fund - via a nasty, upcoming "structural adjustment" that will send Ukrainians to a hellhole even grimmer than the one they are already familiar with. Once again, for all the hysteria propagated by the US Ministry of Truth and its franchises across the Western corporate media, the Kremlin does not need to "invade" anything. If Gazprom does not get paid all it needs to do is to shut down the Ukrainian stretch of Pipelineistan. Kiev will then have no option but to use part of the gas supply destined for some EU countries so Ukrainians won't run out of fuel to keep themselves and the country's industries alive. And the EU - whose "energy policy" overall is already a joke - will find itself with yet another self-inflicted problem. The EU will be mired in a perennial lose-lose situation if Brussels does not talk seriously with Moscow. There's only one explanation for the refusal: hardcore Washington pressure, mounted via the North Atlantic Treaty Organization (NATO). Again, to counterpunch the current hysteria - the EU remains Gazprom's top client, with 61% of its overall exports. It's a complex relationship based on interdependence. The capitalization of Nord Stream, Blue Stream and the to-be-completed South Stream includes German, Dutch, French and Italian companies. So yes, Gazprom does need the EU market. But up to a point, considering the mega-deal of Siberian gas delivery to China which most probably will be signed next month in Beijing when Russian President Vladimir Putin visits President Xi Jinping. The crucial spanner in the works Last month, while the tortuous Ukraine sideshow was in progress, President Xi was in Europe clinching deals and promoting yet another branch of the New Silk Road all the way to Germany. In a sane, non-Hobbesian environment, a neutral Ukraine would only have to gain by positioning itself as a privileged crossroads between the EU and the proposed Eurasian Union - as well as becoming a key node of the Chinese New Silk Road offensive. Instead, the Kiev regime changers are betting on acceptance into the EU (it simply won't happen) and becoming a NATO forward base (the key Pentagon aim). As for the possibility of a common market from Lisbon to Vladivostok - which both Moscow and Beijing are aiming at, and would be also a boon for the EU - the Ukraine disaster is a real spanner in the works. And a spanner in the works that, crucially, suits only one player: the US government. The Obama administration may - and "may" is the operative word here - have realized the US government has lost the battle to control Pipelineistan from Asia to Europe, despite all the efforts of the Dick Cheney regime. What energy experts call the Asian Energy Security Grid is progressively evolving - as well as its myriad links to Europe. So what's left for the Obama administration is this spanner in the works - still trying to scotch the full economic integration of Eurasia. The Obama administration is predictably obsessed with the EU's increasing dependency on Russian gas. Thus its grandiose plan to position US shale gas for the EU as an alternative to Gazprom. Even assuming this might happen, it would take at least a decade - with no guarantee of success. In fact, the real alternative would be Iranian gas - after a comprehensive nuclear deal and the end of Western sanctions (the whole package, not surprisingly, being sabotaged en masse by various Beltway factions.) Just to start with, the US cannot export shale gas to countries with which it has not signed a free trade agreement. That's a "problem" which might be solved to a great extent by the secretly negotiated Trans-Atlantic Partnership between Washington and Brussels (see Breaking bad in southern NATOstan, Asia Times Online, April 15, 2014.) In parallel, the Obama administration keeps applying instances of "divide and rule" to scare minor players, as in spinning to the max the specter of an evil, militaristic China to reinforce the still crawling "pivoting to Asia". The whole game harks back to what Dr Zbig Brzezinski conceptualized way back in his 1997 opus The Grand Chessboard - and fine-tuned for his disciple Obama: the US ruling over Eurasia. Still the Kremlin won't be dragged into a military quagmire. It's fair to argue Putin has identified the Big Picture in the whole chessboard, which spells out an increasing Russia-China strategic partnership as crucial as an energy-manufacturing synergy with Europe; and most of all the titanic fear of US financial elites of the inevitable, ongoing process centered on the BRICS-conducted (and spreading to key Group of 20 members) drive to bypass the petrodollar. Ultimately, this all spells out the progressive demise of the petrodollar in parallel to the ascent of a basket to currencies as the reserve currency in the international system. The BRICS are already at work on their alternative to the IMF and the World Bank, investing in a currency reserve pool and the BRICS development bank. While a tentative new world order slouches towards all points Global South to be born, Robocop NATO dreams of war. 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.

Shootout at the APEC free-trade corral By Pepe Escobar

THE ROVING EYE Shootout at the APEC free-trade corral By Pepe Escobar What a photo - yet another instance of Bali working its magic. Chinese President Xi Jinping leads a "Happy Birthday" for Russian President Vladimir Putin, with Indonesian President Susilo Yudhoyono on acoustic guitar. You know who is not in the picture - he's in shutdown containment mode. US Think Tankland protestations notwithstanding, there could not be a more graphic reminder of the emerging multipolar order. And right on cue, the Creditor, somewhat alarmed, pointedly reminded the massive Debtor, via Chinese vice-finance minister Zhu Guangyao: "As the world's largest economy and the issuer of the major reserve currency in the world, it is important for the US to maintain the creditworthiness of its Treasury bonds." [1] Translation; just as Asia-Pacific gathered to discuss the messier points of economic cooperation at the Asia Pacific Economic Cooperation (APEC) summit in Bali, what everybody was worried about is the scary possibility of the US government defaulting on its colossal debts next week. All this interfered with by a sideshow - the Return of the Extraordinary Rendition in Libya and Navy SEALS getting their butts kicked by a bunch of al-Shabaab jihadis in Somalia, more than enough to bury any coverage of the APEC summit by US corporate media. As predicted, China was the star of the APEC show. It's never enough to remember that the 21-member APEC accounts for no less than half of the globe's economic output and trade. Xi insisted APEC should lead and coordinate the maze of free trade negotiations in Asia-Pacific. He also insisted that any trade agreement should be "inclusive" - as in including China. Only then would it bear the requisite "win-win" trademark; as if Xi needed to emphasize once more - as he did - that China is the biggest trading partner and export market for virtually every Asia-Pacific nation. Behold the "Diamond Decade" The ongoing blockbuster in Asia-Pacific is the clash of the FTAs; there are a dizzying, over 100 competing free-trade agreements currently in play. Negotiations at the World Trade Organization are, to put it mildly, a mess. So a lot of players resort to bilateral and somewhat multilateral FTAs. Overall, the top contenders are the 16-nation, ASEAN-led Comprehensive Economic Partnership (which includes China) and the 12-nation, US-led Trans-Pacific Partnership (TPP), which excludes China.. Xi stressed over and over again that China favors one FTA to cover all of the Asia-Pacific. And as far as Beijing is concerned, that won't be TPP - which is essentially a major US corporate racket that will lower tariffs across the spectrum to the sole benefit of US multinationals and not small and medium-sized firms in developing countries, all this under the cover of a dodgy "highest free trade standard". China essentially wants APEC to put order in the court. Obama has been too busy pivoting to himself instead of pivoting to Asia, more specifically Bali, to offer his spin - but the fact is Washington wants to ram up a TPP over its "partners" under a tight deadline, the end of 2013, glossing over key "devil in the details" discussions over market access (sweet if you're a corporate behemoth) and intellectual property (corporate behemoths marketizing everything). It gets curioser and curioser when one is reminded that APEC at the beginning was very much a US Asia policy stalwart. I vividly remember covering the APEC summit in Bogor, Indonesia in 1994 - when an undisputed Bill Clinton seemed to be dictating the future of Asia-Pacific. That was a sort of "pivoting to Asia" before the fact - and totally under American terms. Then, after the pivoting was first announced by then US secretary of state Hillary Clinton in 2011, she spun it as the dawn of "America's Pacific century". This "Pacific century" seems to boil down, so far, to enforcing an already embattled TPP. Bantarto Bandoro, from the Indonesian Defense University, seemed to get closer to the real picture when he told the Jakarta Globe, "this could be the beginning of the end of American global dominance." While the verdict in this Shootout at the Free Trade Corral remains open, workaholic China proceeds. After its spectacularNew Silk Road successes in Central Asia, Beijing has just proposed a - what else is new - Maritime Silk Road (MSR) in Southeast Asia, boosting trade between China and ASEAN. Once again, Xi was the messenger, in his current tour of Indonesia and Malaysia; he beamed that the MSR would turn the "Golden Decade" between China and ASEAN into a "Diamond Decade". China is the 10-member ASEAN's largest trading partner (over US$400 billion in 2012), with mutual investment at over $100 billion and growing. Beijing sees this coming "Diamond Decade" as the bulk of the political/economic solution for the so far intractable territorial problems in the South China Sea, which pit China against four ASEAN members; Vietnam, Philippines, Malaysia and Brunei. Xi already embarked on a charm offensive in Malaysia, and it's unclear what Vietnam and the Philippines will make of this "Diamond Decade" when there's so much unexplored, unassigned oil and gas to be found in the South China Sea. Yet once again, Beijing is playing the long game. The 2014 APEC summit will be held - of all places - in Beijing. By then Obama may have found time to do some actual pivoting. And by then that may be too little, too late. Note: 1. China urges US to prevent debt default, Xinhuanet, October 7, 2013. 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.