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Wednesday, May 27, 2015

The Currency Manipulation Charade
By Stephen S. Roach

Stephen S. Roach, former Chairman of Morgan Stanley Asia and the firm's chief economist, is a senior fellow at Yale University's Jackson Institute of Global Affairs and a senior lecturer at Yale's School of Management. He is the author of the new book Unbalanced: The Codependency of America and China

NEW HAVEN – As the US Congress grapples with the ever-contentious Trans-Pacific Partnership – President Barack Obama’s signature trade legislation – a major stumbling block looms. On May 22, the Senate avoided it, by narrowly defeating – 51 to 48 – a proposed “currency manipulation” amendment to a bill that gives Obama so-called “fast-track” authority to negotiate the TPP. But the issue could be resurrected as the debate shifts to the House of Representatives, where support is strong for “enforceable currency rules.”

For at least a decade, Congress has been focusing on currency manipulation – a charge leveled at countries that purportedly intervene in foreign-exchange markets in order to suppress their currencies’ value, thereby subsidizing exports. In 2005, Senators Charles Schumer, a liberal Democrat from New York, and Lindsey Graham, a conservative Republican from South Carolina, formed an unlikely alliance to defend beleaguered middle-class US workers from supposedly unfair competitive practices. Stop the currency manipulation, went the argument, and America’s gaping trade deficit would narrow – providing lasting and meaningful benefits to hard-pressed workers.

A decade ago, the original Schumer-Graham proposal was a thinly veiled anti-China initiative. The ire that motivated that proposal remains today, with China accounting for 47% of America’s still outsize merchandise trade deficit in 2014. Never mind that the Chinese renminbi has risen some 33% against the US dollar since mid-1995 to a level that the International Monetary Fund no longer considers undervalued, or that China’s current-account surplus has shrunk from 10% of GDP in 2007 to an estimated 2% in 2014. China remains in the crosshairs of US politicians who believe that American workers are the victims of its unfair trading practices.

While this argument has great emotional and political appeal, it is deeply flawed, because the United States has an insidious saving problem. America’s net national saving rate – the sum total of household, business, and government saving (adjusted for the depreciation of aging capacity) – currently stands at 2.5% of national income. While that is better than the negative saving rates of 2008-2011, it remains well short of the 6.3% average of the final three decades of the twentieth century.

Lacking in saving and wanting to grow, America must import surplus savings from abroad. And to attract that foreign capital, it has no choice but to run equally large balance-of-payments deficits.

Global Central Banks have CUT Rates 572 Times since 2008!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 

Currency Crisis............................It's Coming!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

The AIIB and Chinese Strategy
By Yuriko Koike

Yuriko Koike, Japan's former defense minister and national security adviser, was Chairwoman of Japan's Liberal Democratic Party's General Council and currently is a member of the National Diet

TOKYO – Next month, the Asian Infrastructure Investment Bank (AIIB) will hold its first general meeting, the aim being to launch operations before the end of the year. And now China has doubled down on its effort to secure a controlling role in the new bank by increasing its initial investment from a planned $50 billion to $100 billion.

The additional Chinese investment certainly will strengthen the AIIB’s credit rating. But it may also have been necessary for China to maintain control of the bank, because the number of countries agreeing to participate in the AIIB’s launch has turned out to be far higher than China’s leaders expected.

Indeed, even doubling its initial investment will not give China a majority stake in the world’s newest multilateral lender. Still, it appears that China’s share, at around 30%, will be the largest of the 57 participating countries, which could effectively give it a near-veto over AIIB decisions.

That underscores the main concern among development economists and observers of international relations as the AIIB’s birth approaches. Will it turn out to be a bank of China, by China, and for China, or will it pursue a multilateral agenda in the manner of the World Bank and regional development banks like the Asian Development Bank (ADB) and Africa Development Bank (AfDB)?

China’s explanation for its push to establish the AIIB is that developing countries have inadequate access to capital for infrastructure. Perhaps more important, they have an insufficient voice in the World Bank, the International Monetary Fund, and the ADB. But securing a voice is probably not all China wants.

Recently, China’s military has adopted a steamroller-like approach to building military facilities in the Spratly Islands; indeed, it has created islands were once there was nothing but a coral reef. It has also intensified its effort to make the renminbi an international reserve currency, pushing for its inclusion in the basket of currencies that makes up the IMF’s unit of account, the Special Drawing Right. Some Chinese even think that world standard time should no longer be measured at Greenwich, England, but in Beijing.

China HARD Landing..........................."IS" Happening NOW!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

The BRICs......................................Currently only India Isn't Heading for RECESSION!!!!!!!!!!!!!!!!!!!!!!!!!!
Greece Risk Timeline -- Why July 20 Matters Most

Check out the key dates ahead...
By David Powell

timeline PrivEquity-one page- 021015

Greece probably has until late July to come to an agreement with its creditors before potentially being forced out of the monetary union. Possible delays in payments to the International Monetary Fund in June shouldn’t prompt the European Central Bank to shut off vital liquidity to Greek banks. By contrast, a default on marketable debt -- specifically the failure of the Greek government to pay 3.5 billion euros due to the ECB on July 20 -- would probably force the central bank’s hand. The Greek government and its creditors are still likely to reach a deal on a list of reforms before that crucial date. 

Run on Greek Banks Accelerates; ECB Halts Emergency Funding Hike; Untangling the Lies
By Mike "Mish" Shedlock

The curious story of the day is back-to-back reports, minutes apart, by the same news agency, saying different things.

I commented on that just a bit ago in Greece Says Creditor Agreement Deal Close, Senior Eurozone Official Says "I Wish it Were True".

There is no proof Greece is the one lying, but Greece certainly benefits more from such a lie, two different ways.

*Lies buy Greece more time to prepare capital controls

*Lies may stop some panic out of Greek banks

Assuming point number two is in play, I did a search for "Greek bank deposit outflows". Three stories from today popped right up. Here are two of them.

Run on Banks Accelerates 

Austerity Is the Only Deal-Breaker
By Yanis Varoufakis

Yanis Varoufakis is Greece's finance minister.

ATHENS – A common fallacy pervades coverage by the world’s media of the negotiations between the Greek government and its creditors. The fallacy, exemplified in a recent commentary by Philip Stephens of the Financial Times, is that, “Athens is unable or unwilling – or both – to implement an economic reform program.” Once this fallacy is presented as fact, it is only natural that coverage highlights how our government is, in Stephens’s words, “squandering the trust and goodwill of its eurozone partners.”

But the reality of the talks is very different. Our government is keen to implement an agenda that includes all of the economic reforms emphasized by European economic think tanks. Moreover, we are uniquely able to maintain the Greek public’s support for a sound economic program.

Consider what that means: an independent tax agency; reasonable primary fiscal surpluses forever; a sensible and ambitious privatization program, combined with a development agency that harnesses public assets to create investment flows; genuine pension reform that ensures the social-security system’s long-term sustainability; liberalization of markets for goods and services, etc.

So, if our government is willing to embrace the reforms that our partners expect, why have the negotiations not produced an agreement? Where is the sticking point?

The problem is simple: Greece’s creditors insist on even greater austerity for this year and beyond – an approach that would impede recovery, obstruct growth, worsen the debt-deflationary cycle, and, in the end, erode Greeks’ willingness and ability to see through the reform agenda that the country so desperately needs. Our government cannot – and will not – accept a cure that has proven itself over five long years to be worse than the disease.

Our creditors’ insistence on greater austerity is subtle yet steadfast. It can be found in their demand that Greece maintain unsustainably high primary surpluses (more than 2% of GDP in 2016 and exceeding 2.5%, or even 3%, for every year thereafter). To achieve this, we are supposed to increase the overall burden of value-added tax on the private sector, cut already diminished pensions across the board; and compensate for low privatization proceeds (owing to depressed asset prices) with “equivalent” fiscal consolidation measures. 

Greece likely to miss deal deadline as debt talks stall

Greece will likely miss a deadline for a deal with creditors by the end of the week as the two sides make little progress in their talks, four international officials familiar with the matter said.

Greece is nowhere close to an agreement with the European Commission and International Monetary Fund, missing a target for a deal by the end of May set last week by German Chancellor Angela Merkel and French President Francois Hollande, said the people, who asked not to be identified discussing private negotiations. Underscoring how far apart they remain, creditors don’t believe the Greek budget numbers add up, two people said.

Greek Finance Minister Yanis Varoufakis said on Tuesday that he’s now aiming for a deal by June 5, when the first of almost €1.6bn in IMF payments due next month must be made. US Treasury Secretary Jacob J Lew, who spoke yesterday with Prime Minister Alexis Tsipras for the second time in less than a week, said he’ll push for movement in the standoff at a Group of Seven gathering for finance ministers and central bank governors in Germany.

Bill Gross: Don't downplay Greece's struggles
By Jacob Pramuk

A Greek exit from the euro zone could "discombobulate" currencies and open the door for contagion to other heavily indebted nations, bond investor Bill Gross said Wednesday.

The cash-strapped European nation's struggles matter despite markets' perceived resistance to its ongoing debt negotiations, Gross contended. He noted that if Greece left the euro zone, it would only lead to speculation swirling around Portugal, Spain or Italy.

"I think it matters because markets interpret events on a forward basis," said Gross, manager of the Janus Global Unconstrained Fund.

In an interview on CNBC "Power Lunch," Gross noted that projecting economic growth in the euro zone is difficult, especially because it depends on the effectiveness of the European Central Bank's bond-buying program. The ECB's easy policy does not necessarily make 2 to 3 percent growth in euro zone nations a "slam dunk," Gross said.

Stiglitz Tells EU to Admit Mistakes and Ease Up on Greece
By Jasmina Kuzmanovic

Nobel laureate Joseph Stiglitz said the European Union should admit the mistake it made imposing austerity on Greece and soften its stance or bear the consequences if the country exits the euro area.

“For the wellbeing of Europe and for the betterment of the world, I think the European Commission should soften,” Stiglitz said Tuesday in an interview in Split, Croatia. “Greece has done an enormous amount of work.”

Time is running out for the Mediterranean country to secure new funds before June 5, when it faces a 300 million euro ($327 million) payment to the International Monetary Fund that it may not be able to repay on its own. A standoff with its German-led creditors has triggered record deposit withdrawals from the nation’s banks and wiped out liquidity, pushing the economy back into recession.

Stiglitz’s comments echo calls from economists including fellow Nobel laureate Paul Krugman for EU leaders to compromise to avoid a messy Greek exit from the euro that could send shock waves deeper through the currency bloc. U.S. Treasury Secretary Jacob J. Lew will urge Group of Seven countries to find a constructive and pragmatic outcome in negotiations at a meeting in Germany on Wednesday, a Treasury official said.

GREECE.............................Will NEVER be able to Service there Sovereign Debt without the ECB and the IMF...........................Folks THEY ARE Broke!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
China Blows Its Debt Bubble Bigger
By William Pesek

There are plenty of reasons one could argue China isn't on the verge of a debt crisis: The country has $3.7 trillion in currency reserves, a closed financial system and ambitious leaders who claim to be on the case. And doesn't the biggest rally in Chinese stocks since 2008 count for anything?

But like Japan and other highly-indebted countries that have struggled to deleverage, China isn't showing the requisite tolerance for pain. A case in point was the government's May 15 decision to order banks to prop up the same local-government financing vehicles, or LGFVs, that it claimed to be reining in. Then the People's Bank of China decided this week to guide the three-month Shanghai Interbank Offered Rate to its lowest level since 2008. By manipulating "shibor" in this way, the People's Bank of China is helping regional leaders accelerate their unsustainable borrowing.

Neither of these steps will help China avoid a Japan-like crisis. Rather, they are likely to ensure a belated financial reckoning in the years ahead with the potential to shake the global economy.

The encouragement of local government borrowing is especially alarming. Even among China's many questionable credit vehicles, LGFVs are a standout. They allow provincial governments to use state-owned resources and assets, like land, to borrow from banks. LGFVs have become a potent symbol of the country's post-2008 overindulgence in debt, with local government obligations now exceeding the entire German economy.

The Chinese government has also been urging banks to increase lending to borrowers with liquidity troubles, relaxing rules for companies to conduct off-balance-sheet borrowing and prodding the PBOC to do whatever it takes to cap local-government bond yields. Meanwhile, by allowing local government to shift their LGFV debt to fresh bonds, the Chinese government has eliminated any remaining semblance of transparency in those markets. Entrepreneurial government officials who want to raise some cash to fund dubious projects now have a license to do so without leaving a paper trail. 

China DEBT

The World, Drowning in Debt
By Political Calculations

Via The Telegraph: a world map showing the national debt burden by country around the globe:

Junk-Debt Apocalypse Later
By Wolf Richter

Barron’s assuaged our fears about junk bonds. “High yield is likely to be relatively safe and offer decent yields for the next year or two.” A year or two? And then what? Ah… “But risks loom as the credit cycle stretches out and the long-expected rise in rates materializes.”

Everyone gets out in time. That’s the idea. Everyone, all at once. With no buyers at the other end because everyone is getting out, rather than in. But Barron’s was right, even if the timing doesn’t work out: whatever mayhem awaits us in the future, at the moment we’re having fun.

Possibly the most fun ever:

Charter Communications’ offer to buy the much larger Time Warner Cable for a red-hot $78.7 billion comes on top of its previously announced but now amended deal to buy Bright House Networks for $10.4 billion. But that deal suddenly requires an additional $2 billion in debt, as Charter disclosed in an SEC filing. In order to pull both deals off, Charter would likely have to issue over $25 billion in new debt.

Charter has already lined up some of its ducks in a row. This is the greatest credit bubble in history, and money for deals is sloshing through the system in utter abundance. According to Bloomberg, Bank of America, Credit Suisse, Goldman Sachs, and UBS have committed to provide $31 billion to fund the purchase.

Thing is, Charter is junk-rated. Moody’s rates it Ba3 – three levels below investment grade. And these two deals would turn Charter into one of the largest junk-debt issuers ever, or possibly, when it’s all said and done, the largest one.

Don't Drown in the Sea of Global Debt
By: Money Morning

Peter Krauth writes: Debt is the proverbial double-edged sword, offering access to costly assets, but sometimes driving overleveraged borrowers into bankruptcy.

Only politicians and some Keynesian economists could convince themselves – along with a good portion of the masses – that more debt is the solution to the world's already crushing levels.

It's gotten so backwards, it's downright scary.

Yet there are some practical things you can do to avoid getting sucked under by the growing sea of debt.
The Staggering Growth of Borrowing

According to a study recently published by the McKinsey Global Institute, a research and consulting firm, worldwide debt levels have exploded. Although common sense had many expecting that world economies would deleverage after the Financial Crisis, the exact opposite has taken place.

We've now seen global debt balloon by an additional $57 trillion since 2007, raising the world's debt-to-GDP ratio by 17%. In other words, we're now more overleveraged than before the crisis.

""GLOBAL Debt"" at Record Levels and more Dangerous to the Global Economy than what was experienced in 2008!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Be VERY Afraid of the HELL Coming at YOU when the Coming ""Global Recession"" HITs this ""CREDIT Bubble""!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Doing the THINGS Needed to Prepare for WAR!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Military Drills Increase Globally- War Preparations in Progress?

Joint and  individual military exercise drills have proliferated across the globe over the past couple of months with no sign of these occurrences abating, if anything it appears as full steam ahead.

As these events are at an unprecedented level to-date, they point to potential war preparations, or if not, preparations for an event unbeknown to the general public at this stage.   

Let’s sum –up and examine these events accordingly;

First up are the ongoing ‘Jade Helm’ drills across several American states with parallel exercises in Canada known as ‘Maple Resolve’ involving NATO military personnel.

Lithuania conducting large-scale drills known as ‘Lightning Strike’

In Norway ten NATO countries are involved in operation ‘Dynamic Mongoose’

Russia and China involved in a joint exercise in the Mediterranean- unprecedented for China

The ‘Joint Warrior’ exercise in Scotland, involving fifty warships and submarines and seventy aircraft, also 13 000 personnel from fourteen countries.

Drills inside Russia in response to NATO’s involvement in surrounding countries such as; 24 missile inceptors moved into Romania, the Pentagon having moved warplanes and troops into Bulgaria.

NATO exercises and troop movement in Ukraine-

TALKING UP WWIII: 'If we're lucky won't be nuclear'

The ‘war’ word is being increasingly heard as Europe, Russia, China and the United States adopt provocative postures

IS the world going mad? Military posturing is quietly reaching new extremes in Europe, the Mediterranean and the South China Sea. And the provocative bluster has just reached new heights.

The source was anonymous. But the mouthpiece has a measure of credibility. High profile military analyst and former US Naval War College lecturer John Schindler tweeted last week: “Said a senior NATO (non-US) GOFO to me today: ‘We’ll probably be at war this summer. If we’re lucky it won’t be nuclear.’ Let that sink in.”

The warning comes as Europe engages in some of its biggest ever war games — right on Russia’s front door. It’s a deliberate ploy, intended to remind Moscow of the consequences of its duplicitous invasion of Ukraine.

Half a world away, the “w” word was mentioned again yesterday. This time in an editorial by a Chinese state controlled paper. Said the Global Times: “If the United States’ bottom line is that China has to halt its activities, then a US-China war is inevitable in the South China Sea.”

It came as China’s government effectively declared a “no fly zone” over the disputed waterway after warning the US over its “provocative” aerial reconnaissance of several islands.

Yesterday, a Chinese Foreign Ministry spokeswoman issued a formal protest at the United States’ actions in challenging its territorial clams. 

China’s Naval Abilities Test Asia’s Insecurities

Beijing plans to expand naval operations at a time of rising regional tension
By Trefor Moss

China’s promise to beef up its navy to prevent further “meddling” and “provocative actions” by rivals in the South China Sea is a daunting prospect for many of its neighbors, which already view Beijing’s fast-improving armed forces with trepidation.

The Philippines contests some of China’s claims in the South China Sea, but it has virtually no modern military equipment with which to defend its maritime territory.

Vietnam, another rival claimant, is in better shape: It is already investing in some impressive capabilities, including modern fighter jets, submarines and land-attack cruise missiles, all from Russia. But even after these new weapon systems are in place several years from now, Beijing would still enjoy overwhelming superiority in any confrontation with Hanoi.

China’s ability to overcome its other potential rivals—notably Japan and the U.S.—is more debatable, however. The People’s Liberation Army has around 2,100 fighter or bomber aircraft in its hangars, according to the U.S. Department of Defense, but only a few hundred of those can really be considered modern aircraft. The country’s only aircraft carrier—though a quantum leap forward for the Chinese navy—is still seen mainly as a practice platform paving the way for a future carrier fleet.

And both China’s air and naval forces are still learning how to operate and project power far away from their own coast. The airstrips China is building in the South China Sea aren’t simply a luxury—the PLA air force needs them to sustain operations hundreds of miles from the mainland. 

NATO Secretary General Says Russia’s Nuclear Threats Destabilizing

Jens Stoltenberg said Russia putting nuclear weapons in Kaliningrad or Crimea ‘would fundamentally change the balance of security in Europe’
By Julian E. Barnes

WASHINGTON—Russia’s nuclear threats are destabilizing and unjustified, the head of the North Atlantic Treaty Organization said Wednesday.

Jens Stoltenberg, NATO secretary general, said he was deeply troubled by Russia’s escalating rhetoric about its nuclear weapons as well as stepped-up flights by its nuclear-capable bombers.

Russia’s promises to put nuclear-capable missile systems in Kaliningrad, the portion of Russia next to Poland, and suggestions that it could put nuclear weapons in Crimea, the portion of Ukraine annexed by Moscow last year, have raised deep concerns in the Pentagon and across Europe.

Mr. Stoltenberg said putting nuclear weapons in Kaliningrad or Crimea “would fundamentally change the balance of security in Europe.”

“We learned during the Cold War that when it comes to nuclear weapons, caution, predictability and transparency are vital,” Mr. Stoltenberg said, according to a copy of his prepared remarks. “Russia’s nuclear sabre-rattling is unjustified, destabilizing and dangerous.”

The secretary general delivered his remarks at a speech at the nonpartisan Center for Strategic and International Studies.

Mr. Stoltenberg’s remarks on Russia’s nuclear strategy came amid a broader critique of Moscow and its efforts to support separatists in Ukraine. He criticized a snap military exercise being held on the Ukraine border this week.

U.S. officials have said such surprise exercises are being used to destabilize the government of Ukraine.

Mr. Stoltenberg said Russia was deploying 250 aircraft and 700 pieces of heavy equipment as part of the exercise.

“Russia is a global actor that is asserting its military power,” Mr. Stoltenberg said. “We regret that Russia is taking this course. Because when might becomes right, the consequences are grave.” 

George Soros: We Are On The Threshold Of A Third World War

Paul Joseph Watson: Billionaire investor George Soros told the World Bank this week that the planet is on the verge of a third world war that could arise out of an economic collapse in China.

“If there is conflict between China and a military ally of the United States, like Japan, then it is not an exaggeration to say that we are on the threshold of a third world war,” Soros said during a Bretton Woods conference.

The billionaire warned that China’s difficulty in transitioning from an export economy to a domestic demand-led system could force Beijing to whip up a conflict with an external enemy in a bid to keep the country from collapsing.

Soros said the only solution to the prospect was to allow China to join the IMF’s basket of global currencies so that it could compete with the dollar.

Without this measure, Soros warned that, “there is a real danger that China will align itself with Russia politically and militarily, and then the threat of third world war becomes real, so it is worth trying.”

Soros’ comments came in the same week that CNN revealed how China’s Navy has repeatedly issued warnings to U.S. surveillance planes flying over the South China Sea.

Beijing is attempting to increase its influence by building a series of man made islands in the region. 

China moves weapons on to artificial islands in South China Sea
By Andrew Higgins


China has moved weaponry onto synthetic islands that it’s constructing in contested areas of the South China Sea, including to the dangers of a confrontation with the United States and its regional safety companions together with Australia.

Australian officers are involved that China might additionally introduce long-range radar, anti-aircraft weapons and common surveillance flights that may allow it to venture army energy throughout a maritime expanse which embrace a few of Australia’s busiest buying and selling lanes.

Fairfax understands that these considerations are prompting discussions in senior army circles that would result in Australian naval officers and air pressure pilots embarking on “freedom of navigation” missions to reveal that Canberra doesn’t settle for Beijing’s hardening claims. 

I Wonder, How many Americans are Willing to DIE just to get Hillary into the White House??????????????????????????? 

China Warns World War 3 Is ‘Inevitable’ If U.S Refuses To ‘Stop Meddling’: ‘We Do Not Want It, But We’ll Accept It’

China has issued a stark warning to the United States that World War 3 is “inevitable” if the U.S continues to meddle in the activities of the emerging superpower.

The Daily Express reports that in a new military white paper published today, China has stated its intention to concentrate less on its defensive capabilities and to increase its focus on its offensive capabilities.

Beijing highlighted the reasons for its tactical switch because of a “grave and complex array of security threats.”

The threat of World War 3 is also being blamed on China’s continuing territorial row with the U.S regarding the construction of artificial reefs and other ‘projects’ in internationally disputed waters.

The construction by China of artificial reefs in the South China sea, and various building projects in the Spratly Islands has been a bone of contention with neighboring countries such as the Philippines, Vietnam, and Malaysia, who have all protested against China’s aggressive expansion.

Washington is convinced that China is conducting the work to strengthen their dominance in the South China Sea. The U.S also fear that such dominance will greatly restrict any movement of aircrafts and ships in the region without the express permission of Beijing. 

Huge Surprise Air Force Drill Underway in Russia
Russian MI-17s

The Russian Defense Ministry says that its air forces have begun a massive exercise involving hundreds of aircraft and thousands of service personnel.

In a May 25 statement, the ministry described the four-day drill as a "massive surprise inspection," to check combat readiness.

"The inspection involves about 12,000 military service personnel, as well as up to 250 planes and helicopters and 689 various weapons and pieces of military hardware," the statement said.

The maneuvers began on the same day as NATO and some of its partners started an Arctic training exercise.

Russia's involvement in Ukraine and incursions into Western airspace have led to rising tensions with the West.

A ministry spokesperson said that, during the inspection, "Long-range aviation aircraft will carry out cruise missile strikes against a mock enemy's ground targets at the Pemboi test and training area (in the Komi Republic)."

Asked about Russia's assertiveness in a television interview, Deputy Prime Minister Dmitry Rogozin joked that "tanks don't need visas."

Rogozin is himself on EU and U.S. blacklists as part of sanctions imposed following Russia's annexation of Crimea last year. 

Russia Is Using Mobile Crematoriums to Hide Ukraine Dead
By Josh Rogin

Russia is so desperate to hide its military involvement in Ukraine that it has brought in mobile crematoriums to destroy the bodies of its war dead, say U.S. lawmakers who traveled to the war-torn country this spring.

The U.S. and NATO have long maintained that thousands of Russian troops are fighting alongside separatists inside eastern Ukraine, and that the Russian government is obscuring not only the presence but also the deaths of its soldiers there. In March, NATO Deputy Secretary General Alexander Vershbow told a conference, "Russian leaders are less and less able to conceal the fact that Russian soldiers are fighting -- and dying -- in large numbers in eastern Ukraine."

Hence the extreme measures to get rid of the evidence. “The Russians are trying to hide their casualties by taking mobile crematoriums with them,” House Armed Services Committee Chairman Mac Thornberry told me. “They are trying to hide not only from the world but from the Russian people their involvement.”

Thornberry said he had seen evidence of the crematoriums from both U.S. and Ukrainian sources. He said he could not disclose details of classified information, but insisted that he believed the reports. “What we have heard from the Ukrainians, they are largely supported by U.S. intelligence and others,” he said.

Representative Seth Moulton, a former Marine Corps officer and a Democrat on the Armed Services Committee, was with Thornberry on the Ukraine trip in late March. He tweeted about the mobile crematoriums at the time, but didn’t reveal his sources. He told me this week the information didn’t come just from Ukrainian officials, whose record of providing war intelligence to U.S. lawmakers isn’t stellar.

“We heard this from a variety of sources over there, enough that I was confident in the veracity of the information,” Moulton said, also being careful not to disclose classified U.S. intelligence.

Both Thornberry and Moulton agreed with Vershbow's assessment that Russian President Vladimir Putin was struggling to keep up the ruse that he has no soldiers fighting inside Ukraine. Moulton said the mounting evidence of dead Russian soldiers is causing a domestic backlash for Putin. Russian and Ukrainian bloggers and activists have been compiling lists of Russian soldiers killed in Ukraine, including details of their service and circumstances of their deaths. New organizations in Russia representing soldiers’ families have sprung up to publicly challenge Putin's narrative. 

Putin Isn’t Reviving the USSR, He’s Creating a Fascist State
By Rob Garver,
The Fiscal Times

Russian President Vladimir Putin has memorably called the breakup of the former Union of Soviet Socialist Republics a tragedy, and that has led many to believe that he is hoping to restore the old USSR as he consolidates control within Russia and projects military power outward into Ukraine and beyond.

However, the government Putin is building in Moscow bears little resemblance to Socialism, Communism, or anything that Karl Marx would have endorsed based on his thinking. Surely, the man who described religion as the “opium of the people” wouldn’t likely associate himself with a regime that has rehabilitated the Russian Orthodox Church as a key element of Russians’ patriotic identity.

No, the new Russia looks more like a copy of a totalitarian state from Europe’s dark past, dressed in 21st century clothing.

“When you hear the word Fascism you always have to ask yourself: what are they talking about, how are they using the word?” Oxford University Professor Roger Griffin, one of the world’s foremost scholars of Fascism, once warned in a 2012 interview. “The word ‘Fascist’ can be a simple way of insulting somebody, of saying that they are horrible, nasty, that they should go away.”

Indeed, it’s a favorite epithet of none other than Vladimir Putin, whose surrogates in the Russian leadership alternately accuse the government in Ukraine of either associating with Fascists or actually being Fascist.

What we have here, though, may be an example of what mental health professionals call projection. 

Meet the Russian Politician Who Thinks That 'Tanks Don't Need Visas'

Dmitry Rogozin believes in speaking loudly and carrying a big stick.
By Franz-Stefan Gady

Dmitry Rogozin, Russia’s deputy prime minister in charge of the country’s defense industry and an outspoken hawk, has responded to Western concerns over Moscow’s alleged militarization of the Arctic in his customary inflammatory style.

“I’ve always joked about it… so what if they won’t give us visas, put us on sanctions list … tanks don’t need visas,” he told an interviewer on Russian state television last Sunday, according to AFP.

Last year, the former ambassador to NATO and notorious Putin loyalist, was put on a sanctions list of both the U.S. Treasury Department and the European Union, which made Rogozin announce that the Russian defense industry has “many other ways of traveling the world besides tourist visas.”

Additionally, after Romania prevented the deputy prime minister’s plane from entering its airspace in 2014, he announced that “next time I will fly in a Tu-160″  — referencing Russia’s newest strategic bomber. That comment made the Romanian Foreign Ministry issue a statement calling Rogozin’s words “a serious threat.”

Back in 2013, after the commissioning of the first Borei-class SSBN (see: “Putin’s Red October: Russia’s Deadliest New Submarine”), the Russian Cabinet member tweeted: “You bourgeoisie tremble! You are screwed!”

The most recent diatribe comes in the wake of two-week long Western military maneuvers in the Arctic, codenamed  “Arctic Challenge” and involving 115 fighter aircraft and 3,600 military personnel from nine countries.

“The aim is to exercise and train units in the orchestration and conduct of complex air operations, in close relations to NATO partners,” the exercise’s commander, Norwegian brigadier general Jan Ove Rygg, said in a statement quoted in Newsweek.

Could the South China Sea Cause a China-US Military Conflict?

It’s in neither country’s interests to have a conflict — but they’re headed in that direction all the same.
By Bo Zhiyue

Could the South China Sea Cause a China-US Military Conflict?

Contrary to the idea of “a new type of great power relationship” defined by mutual respect, mutual benefit, and win-win cooperation proposed by Chinese President Xi Jinping, China and the United States have been recently engaged in a war game over the South China Sea.

In response to China’s active construction of islands in the disputed waters of the South China Sea, a U.S. Navy P-8A Poseidon surveillance plane flew near the construction site on Fiery Cross Reef in the Spratly Islands on May 21, 2015 and received eight warnings from a Chinese military dispatcher. This incident came less than a week after a U.S. warship sailed through the Spratly Islands.

From China’s point of view, the construction work in the South China Sea is lawful, necessary, and on its own territory. As Foreign Minister Wang Yi stated in March 2015, China is merely building facilities in its own yard. “We have every right to do things that are lawful and justified,” he said.

From the United States’ perspective, however, China’s construction work poses threats not only to its immediate neighbors such as Vietnam and the Philippines — a U.S. treaty ally — but also to the freedom of navigation in the South China Sea — one of the world’s busiest shipping routes. In Washington’s view, a robust response is urgently needed.

In this game of chicken, neither side will back down easily. As an emerging global power, China has to show its strength and determination to be able to defend its own “core interests.” In his most recent meeting with U.S. Secretary of State John Kerry, Foreign Minister Wang emphasized that “the determination of the Chinese side to safeguard our own sovereignty and territorial integrity is as firm as a rock and it is unshakeable.” But the United States, keen to maintain its status as world leader, is just as determined to demonstrate its credibility as the world police.

Clearly, the United States does not want to go to war with China. Nor does China intend to get into a military conflict with the United States. The U.S. just wants China to recognize its leadership in the international arena. 

China’s Military Blueprint: Bigger Navy, Bigger Global Role

In its first defense white paper, China's leadership paints a muscular vision of how it will defend its newfound place in the sun.
By Keith Johnson

China’s Military Blueprint: Bigger Navy, Bigger Global Role

China laid out its military strategy in its first-ever defense white paper, promising not to hit first, but vowing to strike back hard if attacked in a world full of what it sees as potential threats.

The paper, released by China’s State Council, the chief administrative body of the Chinese government, is especially noteworthy at a time of heightened tensions with the United States over China’s aggressive behavior in disputed areas of the South China Sea. On Monday, Chinese state media spoke of war with the United States as “inevitable” if the United States keep pressing Beijing on its illegal activities; in the United States, meanwhile, the consensus over accommodating China’s rise seems to have given way to a more hawkish stance on the need to contain the rising Asian giant.

China’s new white paper provides plenty of points of continuity with past strategies, especially with Mao Zedong’s doctrine of “active defense,” known in the United States as the Billy Martin school of conflict management (“I never threw the first punch; I threw the second four.”)

At the same time, though, the defense blueprint breaks new ground. It codifies the ongoing transformation of China into a true maritime power, and puts more emphasis on high-seas, offensive naval operations. More broadly, it envisions a much bigger, global role for Chinese armed forces than had previously been the case, and in some places echoes the famously hawkish Chinese views of thinkers such as Liu Mingfu, whose bestselling book “The China Dream” paints a vision of nearly inevitable conflict between the two global titans.

Here are some of the main takeaways from the white paper’s English-language version.

Times may be peaceful, but things sure look scary in Beijing

The defense strategy’s starting point is a generally benign global environment: “Peace, development, cooperation and mutual benefit have become an irresistible tide of the times,” the paper says. “In the foreseeable future, a world war is unlikely, and the international situation is expected to remain generally peaceful.”

But that doesn’t mean everything’s rosy from the vantage point of Chinese leaders. Traditional security threats have been compounded by new threats, from terrorism to cyber war, to make life potentially perilous. One rival country in particular, with a penchant for hanging on to its leading position and supporting treaty allies in the Asia-Pacific region, merits special attention: “There are, however, new threats from hegemonism, power politics and neo-interventionism.” 

China Warns of ‘Inevitable’ War with US Over South China Sea
By Lily Kuo

Chinese People's Liberation Army cadets take part in a bayonet drills at the PLA's Armoured Forces Engineering Academy Base, on the outskirt of Beijing, China Tuesday, July 22, 2014.
China’s State Council just announced a new 'active defense' military strategy in a white paper criticizing 'external countries…meddling in South China Sea affairs.'

After Chinese state media warned that war with the United States may be “inevitable,” Beijing has published a policy paper detailing how the military will shift its focus from land and coastlines to the open seas. China’s State Council released a white paper today that criticizes “external countries…busy meddling in South China Sea affairs” and sets out an “active defense” military strategy for the country.

The paper comes a day after an editorial (link in Chinese) in the state-run Chinese tabloid Global Times said conflict between China and the US will be unavoidable if the Washington doesn’t lay off Beijing for building islands and military facilities in disputed parts of the South China Sea.

“We do not want a military conflict with the United States, but if it were to come we have to accept it,” the paper said. (Editorials in state-run papers are not official representations of Beijing’s position, but often reflect government sentiment.)

The US has been calling on China to halt the construction of entire islands with ports, army barracks and at least one air strip near the Spratly Islands. The area—one of the world’s busiest shipping lanes and home to fertile fishing grounds as well as possibly oil and gas—is the focus of overlapping claims by China, the Philippines, Malaysia, Vietnam, Taiwan, and Brunei. 

China issues first white paper on military strategy

China issues first white paper on military strategy

On Tuesday, Beijing issued its first white paper on military strategy, ushering in greater military transparency by giving details of the direction of its military buildup to other nations.

The document of about 9,000 Chinese characters revealed a list of new expressions that have never before appeared in Chinese white papers.

In the preface it reaffirmed China's adherence to peaceful development and its "active defense" military strategy.

It interpreted the policy as "We will not attack unless we are attacked, but we will surely counterattack if attacked".

"China will never seek hegemony or expansion," it added.

On China's security environment, it mentioned increasing security challenges brought by certain countries, citing the growing US military presence in Asia and Japan's major adjustment in its security policies.

For the first time, the paper noted that "some offshore neighbors take provocative actions and reinforce their military presence on China's reefs and islands that they have illegally occupied".

"It is thus a long-standing task for China to safeguard its maritime rights and interests."

Vietnam and the Philippines have kept building on some of China's islands in the South China Sea.

Accordingly, the paper said the navy of the People's Liberation Army will "gradually shift its focus from 'offshore waters defense' to a combination of 'offshore waters defense' and 'open seas protection'". 

China's 2015 Defense White Paper: Don't Forget Taiwan

The PLA may be shifting its focus to the seas, but Taiwan is still its primary war-fighting scenario.
By Ankit Panda

Yesterday, China’s State Council Information Office released a white paper on “Chinese Military Strategy” — a rarity for the People’s Republic. This document is notable for several reasons, as commentators both here at The Diplomat and elsewhere have already highlighted. It confirms what U.S. analysts have been saying for some time: Beijing is growing bigger and bolder with its military strategy. China envisions itself as a global player, and is in the process of shifting its strategic core from its land-based troops to its navy. Furthermore, Beijing notes that it won’t initiate a war, but it will strike back if attacked (a modern restatement of Mao’s “active defense” doctrine). In a nutshell, the first part of Chinese Vice Premier Wang Yang’s famous statement — that China “[has] neither the ability nor the intent to challenge the United States” — no longer applies. The second part — intent — remains an open question.

Of course, the timing of this white paper will skew readings, especially in the West and in Southeast Asia. In recent months, all eyes have been on China’s increasing assertiveness in the South China Sea. China is building islands and building facilities, including airstrips, on those islands with a scope and pace unprecedented in the region. In recent weeks, the United States has said that it will begin to challenge the legitimacy of China’s behavior and send ships and planes to assert that despite Beijing’s island building, the sovereignty of these various reefs and islands remains indeterminate.

The United States backed that up last week when it sent a P8 Poseidon surveillance aircraft within a stone’s throw of Fiery Cross Reef, provoking a Chinese military warning, with a CNN crew on board to document the encounter for dissemination in the growing war of public relations between the two countries. While the white paper was not written in response to the incident — it would have been drafted far in advance — the paper does address the general dynamic in disputed areas. To this effect, the white paper notes that “some external countries are also busy meddling in South China Sea affairs; a tiny few maintain constant close-in air and sea surveillance and reconnaissance against China.” 

Confirmed: Iran to Receive Russian Air Defense Missiles

The controversial weapon systems could already be delivered by the end of this year.
By Franz-Stefan Gady

Confirmed: Iran to Receive Russian Air Defense Missiles

Yesterday, Russia confirmed that it will sell S-300 air defense missile systems to Iran, however, without announcing a precise delivery date AFP reports.

“The decision on delivering S-300 to Iran has been taken but the realization of the project will take some time. As I understand, the time of delivery has not come yet,” the deputy head of the Russian Security Council, Yevgeny Lukyanov, was quoted by Russian agencies as saying.

Last month, Russian President Vladimir Putin signed a degree that lifted a self-imposed Russian ban on the sale of sensitive defense systems to Iran (see: “These Russian Missiles Will Make Bombing Iran Riskier”).

The lifting of the Russian weapons embargo came after the P5+1, the European Union, and Iran agreed on a landmark outline deal over Tehran’s nuclear program on April 2, in Lausanne, Switzerland. For President Putin, the Lausanne agreement illustrated that Iran is “demonstrating very high flexibility and clearly wishes to reach a compromise on this nuclear program.”

Back in June 2010, Russia cancelled the delivery of the missiles and stopped all military-technical cooperation with Tehran due to a UN Security Council resolution imposing sanctions — which included a ban on the sale of hi-tech weapons. In return, Iran demanded $4 billion in compensation from Moscow.

This issue appears to have been resolved now, although Russia’s Deputy Foreign Minister Sergei Ryabkov stated yesterday that the agreement is still being finalized, according to AFP.

Iran’s Deputy Foreign Minister Amir-Abdollahian, however, was optimistic about a quick delivery: “The negotiations on the subject have ended in success. I estimate that the S-300 delivery will take place in quite a short time (…) it will be done at the soonest opportunity possible.” According to some media reports, the missiles could be delivered by year’s end. 

Russia Confirms Sale of S-300 Missile Systems To Iran


MOSCOW — Russia on Tuesday confirmed its decision to deliver S-300 air defense missile systems to Iran, but said it could not yet announce a date.

"The decision on delivering S-300 to Iran has been taken but the realization of the project will take some time," Yevgeny Lukyanov, deputy head of Russia's security council, was quoted by Russian agencies as saying.

"As I understand, the time of delivery has not come yet," he said.

Talks on the controversial deal, which has been frozen since 2010, finished Monday with Iran's Deputy Foreign Minister Hossein Amir-Abdollahian pronouncing them a "success."

Russia's Deputy Foreign Minister Sergei Ryabkov said Tuesday that the agreement is still being finalized.

President Vladimir Putin last month lifted a ban on supplying Iran with the sophisticated systems, following the landmark framework deal Tehran struck with the West over its nuclear program.

He said several days later that Iran is "demonstrating very high flexibility and clearly wishes to reach a compromise on this nuclear program," which is why Moscow lifted its own ban.

The decision sparked condemnation from Israel and concern from Washington, as it came before the lifting of the sanctions by the UN Security Council, which originally caused Moscow to freeze the deal.

Losing Baghdad to hurt US like the fall of Saigon
The Wall Street Journal

Islamic State has seized control of Ramadi, the capital of Anbar province just 110km from Baghdad. Fallujah, located between, is already a terror stronghold.

There is little doubt that Islamic State leader Abu Bakr al-Baghdadi plans to capture the city whose name he bears. A man who ­declared himself a caliph, Bagh­dadi knows his home was the seat of the Abbasid caliphate, founded in the 8th century to which Islamic State would like to return.

It would be a mistake for the Obama administration to continue to underestimate Islamic State as the junior varsity. Islamic State demonstrated operational capability recently, attacking in opposite directions to occupy both Ramadi and Palmyra, deep inside Syria.

Its Ramadi assault mixed terrorism with conventional tactics. At least 30 huge truck bombs, some reportedly as large as the one used in the 1995 Oklahoma City bombing, obliterated the city’s defences, and Islamic State forces poured through the breach. A similar attack could be in store for Baghdad. It is assumed that Islamic State operatives are in the capital’s Sunni enclaves, with more en route disguised as refugees.

The fall of Baghdad to Islamic State would harm American strategic interests as the fall of Saigon did in 1975. The blow to US credibility and the enhancement of ISIS’s prestige, of its black flag rising over an evacuated US embassy, would be incalculable. To prevent this outcome, President Barack Obama should consider taking the following actions.

Use strategic air power

America’s unrivalled air forces can hit Islamic State from anywhere: neighbouring countries, the sea and the continental US. Yet the sorties flown so far have been minimal, and damage inflicted still less, even as Islamic State held a parade in broad daylight in Rutba, Iraq, last week.

That is the kind of target our aviators dream of. Rules of engagement need to be loosened, US air controllers sent to the front to call in strikes, and more combat aircraft put into the fight. 

Obama IRAQ.........................Obama WILL be Responsible for the MOST Violent WAR in the Middle East since the CRUSADES!!!!!!!!!!!!!!!!!!!!!!

U.S. Intelligence: Iran Sending More Fighters to Yemen

IRGC Quds Force, Hezbollah back pro-Iran rebels
BY: Bill Gertz

Iran has dispatched additional paramilitary forces to Yemen to aid pro-Tehran rebels seeking to take control of the strategic southern Arabian state, according to recent U.S. intelligence reports.

The Iranian leadership earlier this month ordered militants from the Islamic Revolutionary Guards Corps’ (IRGC) Quds Force, along with Lebanese Hezbollah fighters, to Yemen, where Saudi Arabia and other Sunni Arab states are seeking to defeat an insurgency led by Houthi rebels that currently control large parts of the country.

The influx of Iranian forces was outlined in several classified intelligence reports circulated within government over the past two weeks, said U.S. officials familiar with the reports.

A State Department official said the Sunni Arabs in nearby states are opposing the Houthis and seeking to prevent Iran from establishing a foothold on the peninsula.

Estimates put the number of both Iranian and Iraqi Shi’ite forces helping the Houthis in Yemen at around 5,000 people. The number of Lebanese Hezbollah members in Yemen is not known.
On Sunday, Quds Force Deputy Commander, Brig. Gen. Esmail Ghani was quoted as confirming the fact that the IRGC is training Yemenis.

“Each one who is with us comes under the banner of the Islamic Republic and this is our strength,” Ghani said, according to Iran’s Mashregh News, an outlet run by the IRGC. “The defenders of Yemen have been trained under the banner of the Islamic Republic and the enemies cannot deal with Yemeni fighters.”
It was the first official reference to Iran’s training of the Houthis in Yemen.

According to several officials, the ultimate goal of the Iranians in Yemen is to control the Red Sea chokepoint of the Bab-el-Mandeb. 

Obama IRAN........................Don't Doubt ME America!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

America HEAD this WARNING..............................WAR "IS" Coming to Planet EARTH and Obama has MADE It Possible that America WILL Lose this WAR with Russia and China IF America has to Fight!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 

The Clock "IS" Ticking and YOU Just might SEE Tensions Reaching Critical Mass in LATE 2016 as America Elects a New President. IF a Conservative "IS" Elected the ASSHOLES of the World WILL Not Allow America the TIME Needed to Rebuild the U.S. Military thanks to what Obama has Done to the Army, Navy and Especially the Air Force.

Planet EARTH "IS" Heading for the Most Violent Period in Human History and WE have Only OBAMA and HIS Band of ""LIBERALS"" that HE Brought to the White House to STAFF His National Security Council to BLAME!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

A Whole LOT of People are Going to DIE thanks to American LIBERALS who Bought into Obama's BULLSHIT about ""***CHANGE***""!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

China Warns War May Be Coming With US
By John Blosser

The buildup of Chinese naval power in the South China Sea and recent groundbreaking on two island lighthouses are elevating tensions between the U.S. and China over the disputed region.

The release of a new white paper, "China’s Military Strategy," which indicates China plans to broaden its influence over the South China Sea, noting that the People's Liberation Army (PLA) will be adding "open seas protection" to "offshore waters defense" in its naval mission, is straining nerves in the U.S., where Secretary of Defense Ashton Carter has instructed his staff to come up with ways in which the United States can confront China's actions, Bloomberg News reports.

The paper was released just after an editorial in the state-run Chinese tabloid Global Times said conflict between China and the U.S. will be unavoidable if Washington doesn’t stop harassing Beijing for building islands and military facilities in disputed parts of the South China Sea.

"We do not want a military conflict with the United States, but if it were to come we have to accept it," the paper said.

In a briefing, PLA senior Col. Wang Jin commented, "The maritime battlefield has been broadened, and China’s navy needs to react to protect its rights globally," Bloomberg noted.

The white paper stated, "Some external countries are also busy meddling in South China Sea affairs; a tiny few maintain a constant close-in air and sea surveillance and reconnaissance against China.

"It is thus a long-standing task for China to safeguard its maritime rights and interests," Bloomberg reported.

China has been expanding its reach in the South China Sea with land reclamation projects in the Spratly Islands, and it has overlapping claims with Vietnam, the Philippines, Vietnam, Malaysia, Taiwan, and Brunei, Newsmax reports, in an article citing some material from Reuters.

"We will not attack unless we are attacked, but we will surely counterattack if attacked," the paper said, The Wall Street Journal reported.

The U.S. has launched surveillance flights of the disputed island area, the Journal notes, and Japan, the U.S., and Australia will hold the joint Talisman Sabre exercise near Australia in July, Reuters notes.

South China Sea nations are beefing up their defense expenditures, especially on their navies, the Japan Times notes.

Jane's Defence Weekly reported that 10 Southeast Asian nations are expected to increase defense spending from $42 billion per year to $52 billion by 2020, the Japan Times notes, specifically to encounter perceived future Chinese maritime threats.

Tim Huxley, director of the International Institute of Strategic Studies in Asia, told the Japan Times, "As their (Southeast Asian) capabilities in the maritime space expand, it means the range and lethality of strike forces will also increase. If there is a confrontation and it escalates, there is a potential for a more lethal conflict." 

Planet EARTH, I Think WE should SKIP The NEXT Great (""GLOBAL Recession"") this TIME and Go Straight to World WAR III!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 

US-China war 'inevitable' unless Washington drops demands over South China Sea Warning from state-run China newspaper as Beijing reveals plans for development of disputed South China Sea islands By Julian Ryall, Tokyo China has vowed to step up its presence in the South China Sea in a provocative new military white paper, amid warnings that a US-China war is "inevitable" unless Washington drops its objections to Beijing's activities. 

NATO fears Russia's nuclear weapons

NATO fears that Russia may use nuclear weapons, alliance General Hans-Lothar Domrose said In an interview with Focus magazine. Like many other NATO officials, the general spoke of the imminent Russian threat. According to him, Moscow "considers a possibility of the use of tactical nuclear weapons as a means of warfare, while NATO does not."

The NATO general also noted that after the conflict in Ukraine, Russia has intensified the activity of its military aviation. According to the general, at least 300 incidents of violation of airspace were registered.

NATO General Warns, Putin Is A "Dangerous Gambler... Willing To Use Nuclear Weapons"

Hot on the heels of George Soros' warnings that we stand on the verge of World War 3, demanding Washington back off its anti-Yuan pressure, it appears "the good guys" are fighting back with their own good-cop, bad-cop propaganda. As Sputnik News reports, General hans-Lothar Domrose, NATO Commander of the Brunssum Allied Joint Force Command, said in an interview with German magazine Focus Online that Russian President Vladimir Putin is a tough-minded, forward-thinking politician who is capable of foreseeing situations, but also regards him as a dangerous "gambler," who "is willing to use nuclear weapons against NATO troops."

NATO General Reveals Alliance's Biggest Concern About 'Gambler' Putin

NATO regards President Putin as a tough-minded, forward-thinking politician who is capable of foreseeing situations, but also regards him as a “gambler”, which can be dangerous, General Hans-Lothar Domröse, who currently serves as Commander of the Brunssum Allied Joint Force Command, said in an interview with the German magazine Focus Online.

General Hans-Lothar Domröse, Commander of Allied Joint Force Command Brunssum (The Netherlands) has revealed what NATO thinks of Russian President Putin.

In his interview with the German magazine Focus Online, Domröse called the Russian leader a tough-minded, forward-thinking politician who is capable of foreseeing the situation.

The general, however, added that Putin is a “gambler”, which might be dangerous. Unfortunately the general did not elaborate any further.

von FOCUS-Korrespondent Hans-Jürgen Moritz (Berlin)

Hans-Lothar Domröse, Spezialeinheit, Russland, Schlaf, NATO, Krim, Grundsatz, Der Gipfel, Einsatztruppe, Krisengebiet, United States Army Special Forces Command, Tradition, Ostflanke, Ausrüstung, Ukraine, Militär, Jeans, Speerspitze, Scouts, Verwirklichung, Körbchen, Defensivbündnis, Abschreckung

Nato-General Hans-Lothar Domröse über die neue schnelle Eingreiftruppe, die Bedrohung durch Russland und seinen guten Schlaf

Herr General, befinden wir uns nicht schon längst im Krieg mit Russland - in einem Propagandakrieg?

Die russische Propagandamaschine läuft und wirkt. Wir im Westen antworten darauf mit der Wahrheit, schnell, und wir beschönigen nichts. Es mag da Ausnahmen geben, aber so ist es im Grundsatz. Es ist hingegen eine alte russische Tradition, Sachverhalte erst nicht zuzugeben, sie dann in anderem Licht zu kommentieren und schließlich eine Kehrtwende zu machen. Nehmen wir mal das Beispiel der Krim. Zu Anfang hieß es: Das sind wir nicht. Dann hieß es: Ja, da sind auch russische Soldaten. Aber die sind im Urlaub. Soldaten im Urlaub mit Ausrüstung also. Der Gipfel war dann die Einlassung von Präsident Putin: Ich musste dort einschreiten.

Müsste der Westen mit Gegenpropaganda antworten?

Er darf sich vor allem nicht einlullen lassen. Ich kann die Sorge unserer baltischen Freunde verstehen, die immer wieder warnen: Achtung, fallt nicht auf die russische Masche herein. Wir müssen geradlinig bleiben und ehrlich unseren Weg gehen. Lassen wir die Unterschiede ruhig bestehen: Wir bleiben bei der Wahrheit.

Wie präsent ist das russische Militär in und um die ukrainische Krisenregion?

Die russischen Streitkräfte sind seit Beginn der Ukraine-Krise in der Luft permanent sehr aktiv. Wir haben über 300 Luftraumverletzungen oder Fast-Verletzungen. Auf russischem Gebiet stehen in der Nähe der Ukraine ganze Regimenter, klassische Kampfverbände. Wir haben es auch mal mit Special Forces mit Jeans und Sonnenbrille zu tun, die einsickern.

Sie bauen zurzeit eine hochmobile Einsatztruppe auf, die die Ostflanke der Nato sicherer machen soll. Wie weit sind Sie damit?

Wir stehen kurz vor der Verwirklichung unserer Pläne, inklusive der nötigen Infrastruktur. Wir wissen aus den russischen Militärübungen, dass Russland 100 000 Soldaten sehr schnell verschieben kann. Wir haben darauf reagiert und die Nato-Response-Force, also sozusagen unsere Feuerwehr, verstärkt, von 13 000 auf 30 000 Mann. Die Nato hat außerdem beschlossen, diese Truppen schneller verfügbar zu machen, also die Alarmzeiten zu reduzieren. Und wir brauchen eine Speerspitze, so eine Art Scouts, die sofort losgehen können. Das ist in der Größenordnung einer Brigade, gute 5000 Mann, durch Schiffe und Flugzeuge unterstützt, die innerhalb einer Woche verlegt werden können, um einem möglichen Angriff entgegenzuwirken. Zunächst sollen sie abschrecken, in der Hoffnung, dass es zu Weiterem nicht kommt.

By Hans-Jürgen Moritz (Berlin)

NATO General Hans-Lothar Domröse on the new rapid reaction force, the threat of Russia and its good sleep

General, we are not already at war with Russia - in a propaganda war?

The Russian propaganda machine is running and acts. We will reply to the west on the truth quickly, and we gloss over anything. It may there be exceptions, but it is the principle. However, it is an old Russian tradition, matters only not admit it then to comment in a different light, and finally to make a U-turn. Let's take the example of the Crimea. It was said at the beginning: We are not. Then it was: Yes, there are also Russian soldiers. But they're on vacation . Soldier on vacation with equipment so. The summit was then entering into argument of President Putin: I had to intervene there.

Should the West respond with counter-propaganda?

He must not be primarily be lulled. I can understand the concern of our Baltic friends who warn repeatedly: Warning, not fall for the Russian scam. We have to be straight and honest go our way. Let the differences quietly made: We stick to the truth.

How is the Russian military presence in and around the Ukrainian troubled region?

The Russian armed forces are permanently very active since the beginning of Ukraine crisis in the air. We have over 300 airspace violations or fast-injury. On Russian territory at a location nearby Ukraine regiments, classic combat units. We also have time with Special Forces dealing with jeans and sunglasses, the seep.

They currently rely on a highly mobile task force, which is to make the eastern flank of NATO safer. How far are you with it?

We are nearing the realization of our plans, including the necessary infrastructure. We know from the Russian military exercises that Russia can move 100 000. soldiers very quickly. We have responded and the NATO Response Force, so to speak, our firefighters, reinforced, 13 000 to 30 000 men. NATO has also decided to make these forces available more quickly, thus reducing the alarms. And we need a spearhead, a sort of scouts who can start immediately. This is on the order of a brigade, good 5,000 men, supported by ships and aircraft, which can be moved within a week to counter a possible attack. First, they should put off, in the hope that there will be no further.

How credible deterrence may in such outnumbered ever be?

China’s Military Strategy: We will “Counterattack” if Attacked
By Stephen Lendman

On May 26, China’s official press agency Xinhua headlined “China rolls out military roadmap of ‘active defense’ strategy,” saying:

An official white paper issued by the State Council Information Office titled “China’s Military Strategy” pledged “closer international security cooperation.”

It stressed “the principles of defense, self-defense and post-emptive strike.” It said China isn’t aggressive. It will “counterattack” if attacked.

Focus will be placed on “winning informationized local wars.” International security cooperation will be stressed “in areas crucially related to overseas interests.”

Four “critical security domains” were highlighted – “ocean, outer space, cyberspace and nuclear force.”

China’s navy will defend offshore and “open seas” waters. Cybersecurity will be prioritized.

Beijing opposes weaponizing space. It “vowed to secure its space assets.” It pledged no nuclear arms race with other countries.

It stressed a commitment to world peace and stability. It won’t “pursue military expansion.”

Red line in the South China Sea

The real issue is not territory or trade routes but whether the US or China leads in Asia.
By Hugh White, For The Straits Times For the Straits Times

LAST week in the South China Sea, a US Navy P8 maritime patrol aircraft very deliberately flew into airspace around one of the disputed islands claimed by China. It did so to demonstrate America's displeasure at China's development of some of the islands into bases to support military operations. CNN journalists were aboard the aircraft just to make sure the world would see America openly defying China's moves to reinforce its claims to the islands.

This marks a new and more risky phase in the strategic rivalry between America and China which has been brewing for some time now. It seems that people in Washington have decided that the time has come to draw a red line around China's growing power, and that the place to do it is in the South China Sea.

But as President Barack Obama discovered in Syria not long ago, red lines can backfire badly. His administration may find that drawing them in the South China Sea proves more difficult and dangerous than it imagines, and there is a real risk that the whole idea will blow up in Washington's face.

This has nothing to do with the actual territorial disputes themselves, about which America takes no view. Nor, despite Washington's claims, is it really about freedom of navigation in a vital trade route, because there is no suggestion that commercial shipping is at risk. Instead, it is about something even bigger - about who leads in Asia.

White Paper Outlines China's Ambitions
By Wendell Minnick

TAIPEI, Taiwan — China released its first white paper on military strategy Tuesday, just two weeks after the release of the Pentagon's annual report to the US Congress on China's military and security developments.

Neither report appears to take blame for the rising tensions in the South China and East China seas. The Chinese report, "China's Military Strategy," indicates "some of its offshore neighbors" have taken "provocative actions" and reinforced their military presence on China's reefs and islands "illegally."

Without mentioning the US, it says, "some external countries are also busy meddling in South China Sea affairs; a tiny few maintain constant close-in air and sea surveillance and reconnaissance against China."

No mention is made of the recent warning to a US reconnaissance aircraft flying near Chinese controlled areas of the South China Sea. China has not fully explained massive land reclamation efforts that will turn some reefs and islets into airbases and port facilities.

The Pentagon's "Military and Security Developments Involving the People's Republic of China 2015" notes that officially China "seeks to ensure basic stability along its periphery and avoid direct confrontation with the United States in order to focus on domestic development and smooth China's rise." However, Chinese leaders in 2014 demonstrated "a willingness to tolerate a higher level of regional tension as China sought to advance its interests, such as in competing territorial claims in the East China Sea and South China Sea."

An extremely dangerous conflict is brewing between the US and China in a tiny archipelago in the South China Sea

Where lies the greatest potential for disaster in this ever more disordered world? In Russia’s efforts to rebuild its former empire? In the chaos of the Middle East, or the chronic instability of a nuclear-armed Pakistan? Conceivably, none of the above. A case can be made that the biggest danger is represented by a semi-submerged archipelago in the South China Sea called the Spratly Islands, object of a confrontation between China and the US and America’s regional allies that without wisdom and restraint could escalate beyond control.

The stakes, even by a purely material reckoning, are exceptionally high. The tiny islands sit astride a shipping route carrying $5trn of trade a year. The waters that surround them contain rich fishing grounds and, almost certainly, major reserves of oil and other resources. The dispute over the Spratlys, where China, the Philippines, Vietnam, Malaysia, Taiwan and Brunei have overlapping claims of maritime sovereignty, goes back decades. But only recently, with the increasingly assertive and nationalistic policies of Beijing, has it gone critical.

A glance at the map might suggest that China’s case is tenuous. But that is not how Beijing sees it. Instead it is carrying out a massive land reclamation project, enlarging some of the islands and building runways, harbours and other facilities. In effect, Beijing is constructing a giant unsinkable aircraft carrier 800 miles south of the Chinese mainland.

Chinese State Media Warns Of ‘Inevitable’ War With US
By Jonah Bennett

Despite stringent warnings from the United States not to proceed with an aggressive naval strategy, on Tuesday, China unveiled plans to build two lighthouses in the South China Sea.

At the same time, an oped published in the state-run Global Times stated that unless Washington backs down, conflict may be ‘inevitable.’

China’s State Council also issued a whitepaper saying that it will expand military capabilities in the region to include offensive measures, in addition to already existing defensive measures, Reuters reports.  China’s Second Artillery Corps intends to bolster its ability for nuclear counterattacks and long-range precision strikes.

Yet the paper also promised that “China will never seek hegemony or expansion.”

According to Hua Chunying, a spokeswoman for the Chinese Foreign Ministry, the lighthouses will assist in disaster relief and maritime search and rescue. China has used these same claims elsewhere as the justification for building artificial islands.

Nuclear Conflict..............................Just ONE Miscalculation Away from being YOUR Worse Nightmare!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

NATO Russia..................................Another WAR in Europe "IS" Coming!!!!!!!!!!!!!!!!!!!!!!!!!!!!

China Military...................I Totally NAILED this THREAT!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

""GLOBAL WAR"" in this DECADE!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!