Operation Disclosure | By David Lifschultz, Contributing Writer December 2, 2020 THE SABOTAGE OF THE RUSSIAN ECONOMY Compliments of the Lif...
Operation Disclosure | By David Lifschultz, Contributing Writer
December 2, 2020
THE SABOTAGE OF THE RUSSIAN ECONOMY
Compliments of the Lifschultz Organization founded in 1899
Dear Ekatarina:
The problem with Russia is that the west controls its Central Bank and has sabotaged its growth. The Trotskyite oligarchs that have stolen half the wealth of Russia are still there stealing money. These influences have demoralized Russia and the popularity of Comrade Stalin has risen to over 90% as they do not want to see their economy run by thieves, traitors in the Central Bank and Ministry of Finance or ignoramuses like Kudrin.
I presented at the Duma Peace Conference a plan that would enable Russia to rebuild its economy as I did for China for the US where we built up China against Russia in the 1980s and 1990s. We did this by requiring almost all Chinese bank credit to be used for productive investment to replace all manufactured imports and build the largest economy in the world based on purchasing power parity. It worked marvellously. It would work for Russia also and they do not have to export an ounce of oil and natural gas to anyone. They would use the credit as Dr. Hjalmar Horace Greeley Schacht did in Germany for productive investment creating 20% growth per year to become totally self-sufficient, and if they want consumer products they can look to China only where as Stalin they need the technology selling them oil and natural gas in return. That was the only exception made by Comrade Stalin. Otherwise, they do everything themselves. There would be no inflation as the increase in production of goods would offset the creation of additional credit.
In fairness to Comrade Stalin, he was really a Tsarist agent in the Okhrana who reported to Pyotr Rachovsky. When the latter died, he stayed there swept into power by the revolution that Rachovsky was not alive to prevent. He liquidated the Trotskyites as they deserved between 1936-1938 in the Moscow Treason Trials where there were no innocents as the defendants had murdered the children and millions of innocents. It was Trotsky's contention that Robespierre erred by not killing the children of the royals or his revolution would have been successful.
What went wrong as far as the US is concerned is that China felt hemmed in by the US fleet and in 2014 turned to Russia for its natural resources that estranged the US by this Chinese alliance changing the balance of power in the Eurasian land mass as the Stalin-Mao alliance. That is the whole basis of the McCarthyism against Russia and China neither of which is communist anymore. It is balance of power or geopolitics as George Friedman would say. There is no morality in this doctrine as elaborated by Nicholas J. Spykman in his works exemplified in his quote from Thucydides:
We both alike know that into the discussion of human affairs the question of justice only enters where the pressure of necessity is equal, that the powerful exact what they can, and the weak grant what they must.
I could not apply this central bank method for the US in the 1980s as it was too corrupt as Wall Street wanted to make their trillions by market rigs which credit is not productive. I was assigned by the US to write the Volcker anti-inflation plan and supervised the reverse rig in 1987 that avoided a total implosion of the world economy from the cash settlement short rig. These rigs and offshoring made the rich richer and the poor poorer which could not have happened if our own currency was not rigged as pointed out in the next link. I also handled the 2008 crash. Larry Fink is doing a good job today using the same technique we used then and is effectively the head of the Federal Reserve with Powell at 203.5k salary replaced to all intents and purposes by Fink at about 26.5 million dollars a year salary. By the way, I am sure Fink could cut the Federal Reserve System from 20,000 personnel to 200, and sell off about 2.3 billion in Federal Reserve real estate. That gives you a picture on how well run our government is.
Robert Rubin Correspondence – David Lifschultz
This is covered in more detail below in my Duma talk. With best wishes. David
CAN RUSSIA HAVE PEACE NOW?
DAVID K. LIFSCHULTZ
AT THE RUSSIAN DUMA PEACE CONFERENCE AT THE DUMA
The position of Prussia in Germany will not be determined by its liberalism but by its power ... Prussia must concentrate its strength and hold it for the favourable moment, which has already come and gone several times. Since the treaties of Vienna, our frontiers have been ill-designed for a healthy body politic. Not through speeches and majority decisions will the great questions of the day be decided - that was the great mistake of 1848 and 1849 - but by iron and blood.
Can we have peace when Russians are being pounded with mortars in Donbas? Can we have peace when Russians are being mistreated in former Russian territories where twenty-five million Russians reside? The answer is no.
The position is not so different than when Germany after World War One had millions of Germans cut off from Germany at Versailles as Danzig that was 99% German and entitled to a mandate vote by the United Nations that was denied to it. This was the catalyst of World War Two when at the outset of that war Germany and Russia were allies. However, Germany lost the war and Russia did not.
There was treason within Russia that destroyed their nation in 1991 as during the Bolshevik Revolution. Russia had not lost World War One but the revolutions destroyed a Russia that could have made peace on its front. After World War Two this problem was avoided by all Germans who were left outside Germany being forced to move back to Germany during which many perished. This is even being discussed in the west in the highest circles as relates to the 25 million Russians caught outside of Russia by Yeltsin's illegal tearing the Baltic States, Ukraine and Central Asia away from Russia. Western circles want them expelled to Russia as we expelled the Germans.
The Ukraine was part of Russia for nearly 400 years. The very idea of its independence was invented in Austria during World War One for the purpose of undermining the Russian Army and it certainly did undermine the Russian Army during that war. The present independence of the Ukraine was set up so the local Trotskyite oligarchs could loot the country as a Russian aligned government was about to move against the oligarchs. That essentially is the history of most of the areas torn from Russia by Yeltsin under western orders.
The Kiev coup was set up by Brzezinski to draw Russia into a new partisan war as in Afghanistan and was accompanied by his ordering the Gulf States to crash the oil price. Brzezinski was concerned about the massive buildup of the Russian Armed Forces starting in 2000 in missiles as well as the modernization of its ground forces and wanted to strike before it was too late. Russia moved to protect the Russians in the Crimea and the Donbas and Luhansk leading to more sanctions. All of it was a setup.
Russia refused to send its armies into the Ukraine, even that part that was strongly pro-Russian such as the eastern Ukraine east of the Dnieper River (which was historically part of Mother Russia), so as not to become bogged down in another Partisan War leaving the rest of the Ukraine to be looted by oligarchs supported by the west and watched its internal financial collapse. The west would not fund the Ukraine's economy adequately and let it collapse. Most of the IMF injections were stolen by the oligarchs when they transferred their loot out of the country using the IMF money giving them the western currency. These oligarchical looters were backed by the Rothschilds as those in Russia and we see that evidence in the ownership by Lord Jacob Rothschild of all of Khodorkovsky's now worthless Yukos stock. They are Trotskyites as those in Russia now. The Trotskyites of the Bolshevik Revolution backed by Baron Eduard de Rothschild were also Trotskyites or wolves in different sheep's clothing and stole Russia's wealth then until Stalin stopped them in their tracks. Between 1991 to 1999 the equivalent of the present entire householder wealth of Russia was stolen and transferred overseas mostly to London under Lord Jacob Rothschild under today's Trotskyites. A Trotskyite merely changes his clothing from Marxism to capitalism but never his inner nature. Now they are ruining Russia with sanctions as Putin stopped the looting. Why is this tolerated?
King James Bible: Matthew 7:15
Beware of false prophets, which come to you in sheep's clothing, but inwardly they are ravening wolves.
Kiev was an attempted replay of Afghanistan though in the Ukraine Russia did not play there their Afghani part but watched the Ukraine collapse on its own.
Brzezinski thwarted in the Ukraine then created the pipeline crisis in Syria announcing a new pipeline through Syria from Qatar, Saudi Arabia, Syria, Turkey to the EU to destroy the Russian exports of natural gas to the EU and that was the basis for opening up Iran by the west. When Iran did not send their natural gas to the EU, the sanctions were reimposed. In order to accomplish this civil war in Syria, Brzezinski brought in the US created Sunni ISIS to start a civil war. ISIS was originally set up by the US to offset the Shia in Iraq allied to Iran, and to weaken the Shia ally al Maliki, and these forces were unleashed on Syria in a civil war. The rise of the Shia was promoted by the colossal blunder by the US destroying Sunni Iraq. Russia moved in to protect Syria with help from Iran, Hezbollah, and Shia contributing the costly boots on the ground and Russia largely providing air power and they won these allies. Russia's success at the same time blocked the pipeline that was to be used to destroy Russia. The reason all the Zionist Congressmen and Senators vote for sanctions on Russia is that Israel was infuriated by Russia holding up Syria. They prefer Medvedev to replace Putin. Netanyahu is no friend of Putin.
This left Russia damaged in 2014 by the sanctions; the costs of helping Russians in Donbas and Luhansk; the Syrian war and the oil price crash. Since all of this was due to Russia becoming militarily rebuilt unbeknown to Brzezinski until about 2012-2013, it was expected that Russia would in this game of chess move its Queen to protect itself by advising the west that if the sanctions were not removed Russia would default on its 700 billion dollars of external debt. The involuntary default of 1998 had nearly brought down the entire western financial system when a mere two to three hundred billion dollars went into default triggering the implosion of Long Term Capital Management of their 1.8 trillion dollar derivative position and the near implosion of the western financial system. It was anticipated the west would back down but Russian did not move its Queen but accepted the punishment squeezing its population in the process and creating a massive brain drain of talented Russians to the west based on their highly advanced educational system. The CIA could not believe that Russia was so stupid. Stalin's repute as a consequence is now at 70% approval rating and Putin at 25%. Erdogan is going down the same way. The CIA coup failed to kill him so that they will get him with sanctions while he helplessly stands idle as Putin.
The west did not take its defeat in Syria lying down and blamed Iran. Iran under the Shah had been the anchor of all CIA Middle East policy. The Shah controlled the massive oil chokepoint at the Straits of Hormuz and now Iran was becoming a grave thorn in the side of the west, namely, the US. Not only does Iran control the Straits of Hormuz, but the US had created a unbalanced Middle East by destroying Iraq which had counterbalanced Iran. The fact that Iran had now established a Shia crescent from Iran to Iraq to Lebanon was untenable to the United States (note the 8-5 missile attack destroying 70% of Lebanon's Port as part of the effort to destroy the Shia Crescent), and the worst part of it was Iran's strengthening control of the Straits of Hormuz with Chinese and Russian advanced anti-ship missiles lining Iranian's shores. These missiles have a range of over 2,000 kilometers where the aircraft fighters on the aircraft carriers a range of 1,100 kilometers, and the destroyer Tomahawks a range of 1,600 kilometers making them useless to attack Iran as the ships would be destroyed once they are in the range of the anti-ship missiles. As to the US airpower at various bases the Iranian missiles would immediately close these bases with the planes flown elsewhere before they are destroyed on the ground costing the US billions of dollars. The defensive missiles as the Patriot, THAAD and Aegis are relatively worthless. Thus, the US cannot project any power to open up the Straits of Hormuz. Even an invasion is impossible as Iran has nuclear weapons so a concentration of force cannot be engineered as for the Iraqi war. No nation today as North Korea can survive unless they have nuclear weapons as that gives the US the ability to Hiroshima them or lay them waste as Iraq and Libya. by conventional means.
It is our belief that nuclear weapons will be not be used in World War Three as poison gas was not in World War Two as all the key powers have them. We see this war coming from the extreme instability in the US as well as the rest of the west which has become as corrupt as Weimar Germany with sodomy and mass abortion proliferating around the world to 1.5 billion souls as well as the unemployment created as in Weimar Germany by the destabilizing influence of the reaction to a coronavirus on the economy equivalent to the reparations imposed on Germany that eventually resulted in the 50% unemployment of 1933 if all the true unemployed were counted. Whatever the coronavirus is, and just possibly a variant of the influenza, the total death rate in the US in 2020 is no more per month than previous years. It is certainly not a pandemic and almost of the deaths ascribed to it would have died anyway from their comorbitities. The US unemployment based on shutdowns reached about 35% if the true figures were counted to include frustrated workers eliminated from the unemployment totals after a year.
In addition, by Iran now allying themselves with Russia, this gives Russia the potential control of the world through their proxy Iran. Let's outline the hand of cards that the Russians now hold with their victory in Syria with their Iranian ally. Russia produces 11 million barrels of oil per day. If the US and Iran go to war, it would be expected that Russia would move troops into their former Central Asian provinces to protect them that now produce 14 million barrels a day of oil or together 25 million barrels a day of oil production would be under Russian protection or control. Russia could move even now to protect these former Central Asian provinces. Iran controls another 22 million barrels of oil a day that it can shut down at any time merely by saying that no tankers can go through the Straits of Hormuz. China produces nearly five million barrels a day. So Russia, China, and Iran control over half the world's oil supply and this is the winning hand that these three nations control. In other words, there are a hundred million barrels a day of oil produced in the world and over half is controlled by Iran, Russia and China. This gives these three countries control of the world. Thus, these three nations must stick together. Either they hang together or find themselves hanged separately. This means Iran must be the red line for China and Russia. They cannot allow the US to attack their Iranian ally! It is this that interests the US and not Iranian missiles or nuclear weapons. It is a fight for control of the world. Thus, Iran sanctions are not really about nuclear missiles but the control of the world through the Straits of Hormuz.
The goal of the US is to take out Iran first, then destroy Russia by cutting it out of SWIFT-CHIPS wrecking their economy and then the totally isolated China cannot shift their imports of raw materials to Russia under US control but be boxed in by the eleven US aircraft carrier task forces which can cut off China from their natural resources effectively making China a vassal of the US which was the concept of world control of Britannia when they ruled the waves.
If we assume that Russia and China will redline Iran, this three way alliance through this control of the world can force the EU to end the sanctions and acquiesce to the return to them of the Ukraine, Baltic States and Central Asia if they so choose or cut off the oil. In addition, they can raise the price of oil and sponsor births in their country and build up their technological industries with these riches. NATO forces are to the west of Russia but there is relatively nothing to the east. It would only take a handful of troops to reoccupy the old Russian provinces of central Asia and by cutting off half the world's oil supply by "indirect" warfare the US would collapse as it would detonate the 600 trillion to 2.5 quadrillion derivative market described by Warren Buffett as a weapon of mass destruction.
Let us repeat the main point. If the US can succeed in destroying Iran, that effectively isolates Russia and China. Then, the US plan is to implement the fatal blow on Russia by cutting them out of CHIPS and SWIFT which comes next. What is CHIPS and SWIFT?
The Clearing House Interbank Payments System (CHIPS) is a United States private clearing house for large-value transactions. By 2015 it was settling well over US$1.5 trillion a day in around 250,000 interbank payments in cross border and domestic transactions. Together with the Fedwire Funds Service (which is operated by the Federal Reserve Banks), CHIPS forms the primary U.S. network for large-value domestic and international USD payments where it has a market share of around 96%. CHIPS transfers are governed by Article 4A of Uniform Commercial Code.
The Society for Worldwide Interbank Financial Telecommunication (SWIFT), legally S.W.I.F.T. SCRL, provides a network that enables financial institutions worldwide to send and receive information about financial transactions in a secure, standardized and reliable environment. SWIFT also sells software and services to financial institutions, much of it for use on the SWIFTNet network, and ISO 9362. Business Identifier Codes (BICs, previously Bank Identifier Codes) are popularly known as "SWIFT codes".
The majority of international interbank messages use the SWIFT network. As of 2015, SWIFT linked more than 11,000 financial institutions in more than 200 countries and territories, who were exchanging an average of over 32 million messages per day (compared to an average of 2.4 million daily messages in 1995). SWIFT transports financial messages in a highly secure way but does not hold accounts for its members and does not perform any form of clearing or settlement.
SWIFT does not facilitate funds transfer: rather, it sends payment orders, which must be settled by correspondent accounts that the institutions have with each other. Each financial institution, to exchange banking transactions, must have a banking relationship by either being a bank or affiliating itself with one (or more) so as to enjoy those particular business features.
SWIFT is a cooperative society under Belgian law owned by its member financial institutions with offices around the world. SWIFT headquarters, designed by Ricardo Bofill Taller de Arquitectura are in La Hulpe, Belgium, near Brussels. The chairman of SWIFT is Yawar Shah, originally from Pakistan, and its CEO is Gottfried Leibbrandt, originally from the Netherlands. SWIFT hosts an annual conference, called Sibos, specifically aimed at the financial services industry. Starting from July 2019, the CEO will be Javier Pérez-Tasso.
If Russia is cut out of CHIPS-SWIFT, and 88% of world financial transactions have a dollar on one side, then Russia is destroyed. They may figure out a way to hang on but Putin's popularity would hit the level of Yeltsin on his way out and Russia would be back as a vassal of the US. After Russia is destroyed, China will be totally isolated as the US turns its guns on China. Thus, the US wins the game of divide and conquer or divide et impera. That is what this is all about.
Let's backtrack a bit and go into the weapon that Iran presently controls which is shutting the Straits of Hormuz. Overhanging the world financial system are about 2.5 quadrillion dollars of derivatives which is about 28.6 times the 87.3 trillion dollar world GDP (There are various derivative estimates and this comes from a high Swiss source. The Bank for International Settlements estimates about 560 trillion of derivatives while others go to 1.2 quadrillion saying the BIS mostly has derivatives held by the banks that they base their calculations on and these are hardly representative of the entire world exposure.). Warren Buffett correctly describes these derivatives as financial weapons of mass destruction. 560 trillion dollars which is quite enough in theory to bring down the entire financial system (world GDP is 87.3 trillion dollars in 2019) if triggered by the closing of the Straits but again Swiss sources say it is from 1.2 to 2.5 quadrillion. In other words, the US is destroyed if the Straits are shut as stress tests at Goldman Sachs say the oil price would rise from $70.00 a barrel to $500.00 to a $1,000.00 a barrel at the loss of 22% of the oil supply through the Straits of Hormuz or 22 million barrels a day. While there are significant oil reserves in storage in different countries, and the ability to divert by pipeline about three million barrels a day to the Indian Ocean, this would not make a big enough dent in the collapsing daily supply to make a difference.
If the price of oil rose to a thousand dollars a barrels, and there are a hundred million barrels a day coming out of the ground, this would constitute 45% of the world GDP from less than 4% of the world GDP at seventy dollars a barrel. And yet that is not all. Even if we calculate the temporary effects of storage, and the 78 million barrels a day, and three million barrels a day routed over pipelines to the Indian Ocean, this blow will be sufficient to start the nuclear chain reaction of the derivative market and anyone who does not think so should call up Warren Buffett whom we are sure will agree that we will be in a worldwide depression that this financial weapon of mass destruction would produce. This world depression would be worse than 1929 which will cause the overthrow of all western democratic systems as in Germany in 1933 including that of the United States. There will be hell to pay for the Trotskyite oligarchs of the west.
This is becoming clear by the recent economic gyrations of the US based on the shut down of the economy based on the fear of the coronavirus leading to a 32.9% decline in the US GDP for the second quarter which could be said to be the equivalent of the reparations problem of Germany in 1933 that was caused by its moral decline before World War One that cost them the war. Here we find the US falling apart under similar economic stress after a more extreme moral decline here reflected in the laws legalizing sodomitic marriage and 60 million abortion murders not to speak of the US sponsored 1.5 billion abortion murders worldwide. These abortion murder figures are very much understated as they do not reflect the after morning pill. The US has fallen so low morally that rioters have destroyed 400 cities and the troops have not been called out to end the rioting by shooting the rioters or firing cannons with shrapnel successfully used by Napoleon Bonaparte to clear the Parisian streets. This reflects a total moral breakdown and loss of nerve in the face of Leninist BLM-ANTIFA PSYOPS OPERATORS set up by a foreign power as the Bolshevik Revolution. New York City that reflects 10% of the US GDP has had most of their business leaders fleeing the city as it faces total bankruptcy by allowing the rioters to take over the streets and stabbing the police in the back leading to massively soaring crime rates. New York City is Weimar Berlin.
We saw that stress in 2008 when the disaster was only confined by papering over with 400 years of new Federal Reserve Credit to replace the destruction of derivative instruments. From 1914 to 2008 about 900 billion dollars of Federal Reserve Credit was created before it was fractionalized into the banking system to about 18 trillion M-3 at one point, but we raised that to about 4.6 trillion dollars after the crash to maintain the monetary aggregates so that they would not contract as in 1929. 2.7 trillion was created in this aggregate as excess reserves that did not fractionalize as the Fed paid interest on it to the banks higher than market to cover all their assets that had been destroyed and they were gradually written off against this income as planned.
Today we have created 3 trillion dollars of Federal Reserve Credit in about three to four months and the end of this crisis is not in sight. The budget deficit is soaring toward four trillion dollars out of an seven trillion dollar US budget. The budget deficit in 2008 was 455 billion dollars and in 2009 1.4 trillion dollars. The magnitude of the US financial crisis is unprecedented in history and it is only beginning.
These are interesting examples of a government bailout of an alleged private commercial banking system since these private banks are part of the public creation of credit or money creation by fractionalization which is supposed to be only a governmental function of making money. The banks were to all intents and purposes otherwise bankrupt. However, if we lose 22% of the oil supply, we cannot paper over the loss of oil. Game over.
I repeat the original question. Can Russia have peace if the west is trying to destroy it and the answer is no. Russia is at war now as sanctions are war, and it is a hot war at Donbas, and Russia must move to defend itself on all fronts before it is destroyed. We see Stalin's popularity rising in Russia to 70% while the present government is losing its popularity. This demonstrates that the Russian people do not think their government is protecting them.
The following actions are required to restore that popularity.
1. The wealth stolen by the oligarchs from Russia must be returned.
2. Russia must move to protect the 25 million Russians outside of Russia and if necessary mobilize their armies to move back to their former provinces to take over control so they are not persecuted.
3. The Central Bank must be reorganized along the lines of the Chinese Central Bank, and no credit can be allowed to be created that does not have a productive purpose. No financing the purchase of stock for speculation. No creation of credit for anything that does not have a productive purpose. Credit should be created to replace all imports by building factories in Russia to manufacture the goods here in Russia. Self-sufficiency will be the rule and all imports except in the case of vital technology should be ended. And as China, Russia must assign thousands of engineers to develop their own technology as ZTE just did to gain complete independence from the United States. ZTE was put out of business for three months when the US would not give them the chips of Qualcomm. ZTE then went on a crash one year program to replace all US chips and succeeded based on a massive effort. They do not need anything from the US anymore and so is China doing now on all fronts. They will be independent in a year or two rather than the planned 2025 from any US technological input. This is war. Is Russia blind? How could they have not seen their Central Bank was run by saboteurs and wreckers when they had the Chinese example before them.
The new Russian Central Bank and the Ministry of Finance of Russia who will have replaced the Friedmanites (another form of Trotskyism) must create plans together with the commercial banks to invest in industries that Russia needs as China does and the commercial banks must not think that they have a right to be independent of central bank control. Commercial banks create credit on their own when they fractionalize their reserves and if they used this credit which is really money for their own goals they would be converting a publicly owned asset to a private asset. In other words, when the commercial banks create credit, they create money that is not theirs as in printing a ruble. The state has a right to make sure this money is used in the interests of the people. It is elementary economics that Russia can grow its GDP at 15% a year if the credit is created to make factories needed to manufacture goods as the new production offsets the creation of credit making in non-inflationary. Such elementary rules of economics are beyond the understanding of Russia today. There is no theoretical limit to growth on that basis as you theoretically could grow the GDP 30% a year or more but there may be infrastructure constraints that must be studied in advance so bottlenecks do not take place. But the principle is important to understand as the present central bank is basing their actions on a fixed monetary base growth unrelated to production thinking things will take care of themselves. They do not.
4. The degenerate rock music and night clubs should be closed as forms of corrupting the youth and leading to promiscuity.
5. Abortion is a form of murder and so is sodomy in its perversion of denying life to the soul created before conception in Heaven, see Jeremiah 1:5. Both must be outlawed. No nation can be great while babies or souls in the womb are murdered. Dante says of sodomy that it is a sin against nature as only a fool sows where nothing will grow. The sodomist takes a fruitful function and makes it unfruitful. Stalin was right to outlaw these vices. Also, all forms of contraception should be outlawed as it makes marriages into a form of legalized prostitution. Stalin taught all the boys and girls that they cannot practice sex before marriage (onanism) and the conjugal act should be restricted to the procreative end only. For example, it should not be practiced in marriage while the woman is pregnant, in her menstrual period or after menopause. The goal of the Russian woman should be to have as many children as possible. If necessary, the state should subsidize births as much as needed to the point woman will want to have babies and double and triple the population. The state benefits for mothers should be so high that it is more profitable for a woman to bear children than to go to work. This also can be achieved by the father receiving a family wage to reflect the number of children receiving more of a wage the more children he has. That is true investment for the future. The ideal cycle is three years from conception. Nine months for pregnancy and two years for nursing during which the conjugal act would not be used. If it is used after birth, it can only be used if the procreative end can be achieved and then once a month at the most fruitful time as Zenobia of Palmyra. That is Stalin. That is Napoleon. That is the belief of all great men. That is the devout Christian Church belief. And this is the secret of the preservation of female beauty as explained on French television by Bridgett Bardot that she had become hideous because she gave her beauty and youth to a hundred paramours. That is, her overindulgence in non-fruitful relations destroyed her beauty and her health.
6. In all schools there should be mandatory Bible reading which Bible will teach all these principles especially in the first five books where is found the laws. Stalin studied the Bible in Seminary until he was twenty which gave him the perfect background to instil in Russia the most important principles. There were no innocents executed in the 1936 to 1938 Moscow Treason Trials against Trotskyites and that should be our inspiration. All of them were rightly condemned for Trotskyism and treason against the state. The US has its Trotskyite problem on a trillion dollars a year being stolen on Wall Street through derivatives (that is what they are for) just as Russia had faced by Stalin. Russia right now still has the Trotskyite oligarchs around undermining the state. Putin has been gradually ousting them as Khodorkovsky, Berezovsky, Gusinsky, and others but all the other Trotskyites must go and their assets seized as Khodorkovsky. It must be remembered that even the great Stalin did not eradicate all the Trotskyites until 1936 after 14 years of leadership. It takes time to take back your country. Behind the Russian Trotskyites today is Lord Jacob Rothschild as Baron Eduard de Rothschild was behind Lenin and Trotsky engineering the Bolshevik Revolution through their agent Parvus. It is the Trotskyites in the US who are against detente with Russia as the Trotskyites in Russia. They are the war mongers.
A political meeting should not end up rehearsing endless and meaningless platitudes. It must confront concrete problems with concrete solutions.
We must fight for these principles in Russia. Let's listen to Fyodor Dostoyevsky at his speech at the unveiling of the Pushkin Statue in 1880 on how these principles are applied.
In this speech he discusses the Pushkin Poem "Yevgeny Onegin" in which Dostoyevsky says is one of the greatest of poems. But he says it should really be named Tatiana. Yevgeny was a aristocratic, dissolute dweller in St. Petersburg high society going to see his sick uncle who was dying as he was his heir. His uncle died and he stayed at his rural mansion and estate a while which he had inherited. He met a beautiful girl named Tatiana who had an aristocratic birth but being that she lived in a rural area she did not have the refinement of St. Petersburg. So he disdained her. She wrote him love letters, and was madly in love with him but he returned them as a gentleman as they could have compromised her future. He rejected her. He makes friends with the suitor of Tatiana's sister, and says to him he could have his fiancee anytime he wants who had thrown herself at him. This leads to a duel that he really does not want as he loved his friend, and he kills him. He now becomes very distraught, and depressed and wanders around Europe for a number of years. When he comes back to St. Petersburg, he goes to a ball and sees a beautiful young girl who is married to a retired, aristocratic general forty years older than she, and he asks to be introduced. He is astonished that it is Tatiana who now reflects St. Petersburg sophistication. He then falls madly in love with her and goes to see her to persuade her to run off with him.
Tatiana receives his visit formerly and when they are alone he pleads with her to run off with him. Tatiana replies that she is still madly in love with Yevgeny but she cannot leave her husband as she is bound by God, the Biblical prohibition against adultery, honour, and duty, and could not violate that honour out of love.
"Mine honour is my life, both grow in one, take honour from me and my life is done." (Shakespeare)
So he must go. Then Dostoyevsky proclaims that this Tatiana represents the soul of Russia. And I am here in honour of that soul.
December 2, 2020
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Russia Considers a New Economic Model
Moscow’s tone about the future of the economy has changed.
By: Ekaterina Zolotova
The flaws in Russia’s economy might be too deep to gloss over. At an annual civil forum in Moscow on Saturday, Alexei Kudrin, the chairman of Russia’s Accounts Chamber and finance minister from 2000 to 2011, spoke rather pessimistically about the Russian economy. He predicted a drop in economic output this year of 4.5 percent, a significant fall in living standards and that 1 million more people will slide into poverty. It’s no secret that the Russian economy is under serious stress – made worse by the coronavirus pandemic – but Kudrin’s remarks were unusual for a government that has been promoting the rehabilitation of Russia’s economy by 2022. Given the unavoidable economic difficulties ahead, the Kremlin appears to be changing tone and priming the public for more hardship – and potentially a massive economic transformation.
From Bad to Worse
At the forum, Kudrin said Russia needed a new economic model, and it’s hard to argue with that. Oil remains the backbone of the Russian economy. Approximately half its exports are of mineral resources (mostly natural gas and oil), and oil and gas revenues make up about 30 percent of its federal budget (and that’s excluding tax revenues from oil and gas giants like Rosneft and Gazprom). The pandemic, however, has cratered economic activity, and thus demand for energy, and OPEC+ members including Russia agreed to cap production for the time being. In these circumstances, it is difficult for an economy that depends on energy exports to remain afloat. And even after demand recovers, Kudrin said he believes oil consumption will start to decline from its peak in the next 5-10 years, forcing Russia in the 2030s to shift away from oil exports.
One significant challenge is finding an effective economic model that can ensure Moscow’s continued control of its vast territory and far-flung regions. Today, the Kremlin maintains control using not only the security apparatus and political institutions but also the redistribution of budget revenues between regions. These revenues, however, depend on the oil and gas industry. Beyond its own borders, Moscow has offered neighbors discounted energy in exchange for greater regional influence and security, defending itself and its sphere from encroachment by China in the east, Turkey in the south and Europe in the west. But as the role of oil and gas in the Russian economy declines, the Kremlin will need its new economic model to serve a similar purpose with respect to building and maintaining allied relations with its neighbors.
During his speech at the civil forum, Kudrin suggested that what Russia’s economy needs is “revolutionary deregulation.” He recommended a model he called NEP 2.0 to encourage entrepreneurship, a reference to Lenin’s New Economic Policy of the 1920s following Russia’s Civil War. Under the original NEP, the Soviet Union temporarily turned toward state capitalism and away from extreme centralization – with noticeable success. By 1928, the national income had surpassed prewar levels and the material situation of citizens of all stripes had grown more stable. But when Stalin took power that same year he abandoned the NEP, whose legacy remains controversial in Russia to this day.
The situation in Russia in 2020 isn’t even close to as bad as it was in 1921, but it’s going to get worse. Kudrin, after touting Russia’s victory over extreme poverty, said C19 would by the end of the year force another 1 million Russians into destitution. In the second quarter of 2020, Russians’ real disposable income fell by more than 8 percent, and it dropped by another 4.8 percent in the third quarter. Leaders in Moscow apparently see the C19 recession as an opportunity to implement transformational change.
A New Model
The Kremlin could, for example, claim that raising living standards and rescuing private small and medium-sized enterprises at this time will be too difficult, given the current extraordinary challenges, and save what’s left of its public funds for future use. Indeed, though Moscow has said it’s prepared to help stimulate the economy, it has been hesitant to pile more stimulus on top of its initial efforts to aid Russian businesses. In this way, it’s leaving the economic recovery in the hands of the Russian people. It believes that the economy will continue to chug along, while the state continues to manage key sectors including much of heavy industry and transport. (During the lockdown, the public sector appeared more stable than the private sector, so state-owned enterprises could also use this as an opportunity to dominate the market even more than they had before.)
Though Russia still has substantial reserves in its national wealth fund – roughly 13 trillion rubles ($170 billion) – it’s not in any hurry to spend them to prop up large Russian corporations. It sees relying on SMEs as a better method of stimulating economic recovery, in part because they don’t require the same level of financial support that large firms do, and in part because individual SME owners can’t challenge the Kremlin the same way powerful oligarchs who control massive Russian corporations can. So by allowing SMEs to take on the bulk of the responsibility for economic recovery, the Kremlin ensures that its own influence in the regions outside of the capital isn’t overrun by other wealthy interests.
Moscow is also using this time – while many countries’ economies are stalled by the pandemic, and while the United States is preoccupied with the presidential transition – as an opportunity to improve relations with the western buffer states and increase its influence among its neighbors. After negotiating a peace deal between Azerbaijan and Armenia over the Nagorno-Karabakh conflict, Russia secured a long-term presence in the South Caucasus by including in the deal a Russian peacekeeping force that will monitor the cease-fire. To its west, Russia saw President Alexander Lukashenko elected to another term in Belarus in August, and since the disputed election, he has been looking to Moscow for even more support and cooperation. Meanwhile, the conflict in eastern Ukraine remains frozen, which suits the Kremlin just fine.
One of Moscow’s key tools of projecting influence in the post-Soviet states is the Eurasian Economic Union. The head of the group’s executive body, the Eurasian Commission, said this week that the bloc was moving into a new phase of integration and ready to build projects worth $200 billion. A long-awaited draft agreement on gas prices and tariffs on gas transport – which will essentially create a common market for natural gas – is expected next year. (Members are still divided on this issue, however, meaning an agreement may be hard to come by. Belarus and Russia will therefore continue to negotiate between themselves while they await a broader deal.) In addition, Russia is spending millions to support external economies, even while its own economy struggles. It provides Kyrgyzstan, for example, millions of dollars’ worth of financial assistance. It is also considering financing the second stage of a project to increase production of hydrocarbons in Uzbekistan and has provided the country with loans worth $650 million. And it has also issued Belarus $1.5 billion in loans.
In the short term, the Russian economy will survive. In the long term, it will need substantial changes. It continues to depend too much on profits from oil and gas exports, which were previously used as an instrument of influence and control for the state. It now needs to look for new tools with which to maintain state power at the lowest possible cost. While the pandemic has presented many countries with enormous challenges, it may also present Russia with an opportunity to conduct an experiment in economic reform. And if the experiment succeeds, it could help the Kremlin fulfill both of its key imperatives: to preserve the unity and power of the state, and strengthen its power within the broader region.
David Lifschultz
THE LIFSCHULTZ ORGANIZATION, Founded 1899
DAVID@LIFSCHULTZORGANIZATION.COM
Tel: (212) 688-8868
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