Showing posts with label Petrodollar. Show all posts
Showing posts with label Petrodollar. Show all posts

Monday, 12 April 2021

Incentives: Joe Biden and Vladimir Putin possible moves – Donbass crisis.

Incentives: Joe Biden and Vladimir Putin possible moves – Donbass crisis. April 11, 2021

By David Sant for the Saker Blog

Several analysts have written articles about how Russia is likely to respond in the theater to an offensive by Ukraine to restart the Donbass War. My purpose in this article is to look at the psychology and incentives of Joe Biden and Vladimir Putin and the possible moves that each of them may make in response to the Donbass crisis.

The Nature of the Dispute

It is fairly well established that two primary motives seem to be driving the Atlanticist pressure on Russia and continuing eastward expansion of NATO. The larger issue is that Russia, Iran, and China seem to be increasingly resistant to the rule of the Atlanticist monopolar hegemony enforced by the US Military and NATO. As someone recently said, the American empire is a currency empire sustained by forcing all energy transactions to be priced in US Dollars, and controlling energy transit points. By moving away from using USD for oil and gas transactions, Russia, China, and Iran pose a mortal threat to the empire.

The secondary issue, the one driving the timing, is control of oil and gas pipelines. In short the USA wants Europe to use American-controlled gas and oil, which means Saudi and Qatari oil, and American LNG. They want to create pipelines and delivery routes for American-controlled energy, and close or prevent delivery routes for Russian energy. The three current flashpoints are Syria, Ukraine, and the route of the Nord Stream 2 pipeline, all three of which are current or potential pipeline routes.

Several years ago the US successfully pressured Bulgaria into cancelling the South Stream Pipeline through the Black Sea. However, US sanctions have been unable to deter Germany from allowing the Russians to complete the Nord Stream 2.

With the completion of the project only a few months away, the US seems determined to stop it at any cost. This appears to be the motive behind instigating the Ukrainian government to invade Donbass. If Russia defends Donbass, she will be demonized in the Western press, and this will be used to pressure Germany to cancel Nord Stream 2. From the American perspective, getting the Ukrainians to fight the Russians weakens both at no political cost to the US.

It is my opinion that the Biden Administration is making a major miscalculation by continuing this approach. For the past seven years, Russia has absorbed round after round of sanctions and provocations by the US government in Ukraine and Syria. The Biden regime seems to assume that if they instigate a war in Donbass now, that Russia will continue as they have before, to absorb the blow without striking back. I suggest that this time it will be different.

The History and Psychology of Biden and Putin

Vladimir Putin was handpicked by the Western handlers to replace Boris Yeltsin in 1999, largely because he was known to be reliable. However, Putin surprised those who appointed him by turning against the oligarchs and reigning in the chaos that was dismembering Russia after the collapse of the Soviet Union. Putin enforced the law and cracked down on corruption, including corruption by the Western interests that put him in power.

Displeased by this turn of events, the West, led by Bill Browder, has spent the past fifteen years demonizing Putin. For example, when Russia granted asylum to Edward Snowden in 2013, multiple US politicians used scripted talking points calling Mr. Putin “a schoolyard bully.” That analogy was rather inept, as Russia did not invite Snowden, but rather got stuck with him, as his passport was cancelled while in transit, making it impossible for him to board his flight out of Russia. Putin actually said that as a former intelligence officer himself, he did not view Snowden’s leak of classified information in a positive light.

The problem with demonizing one’s opponent is that it can lead to strategic errors if you make the mistake of believing your own propaganda. If we look at Mr. Putin’s past behavior we see four consistent characteristics.

First, he follows the rules. Whether it is the START treaty, the chemical weapons accord, or the Minsk Agreements, the Putin regime has consistently tried to keep the old treaties alive and to follow agreed upon UN procedures for conflict resolution.

Second, when Mr. Putin has taken steps to oppose the Atlanticist agenda, he has done so in a way that allowed his opponents to save face. When the US was preparing to invade Syria in 2013, Putin persuaded Assad to agree to eliminate his chemical weapon stockpile. This pulled the rug out from under the US invasion, but it did not make the US look bad.

When Russia entered Syria to fight ISIS, they did not publicly expose the fact that the US and Israel were the primary backers of ISIS. Putin went along with the ruse and said, if America is fighting ISIS we will fight ISIS too, and did so legally at the invitation of Syria. Russia’s work allowed Trump to take credit for defeating ISIS, even though it completely ruined eight years of CIA efforts to train and arm those terrorists.

Third, Mr. Putin keeps his word. When he draws a red line, he enforces it. He speaks quietly but it is wise to listen carefully to what he says. We have seen this in the way that Russia dealt with terrorist groups that agreed to deconfliction versus those that did not, as well as the ones that agreed and then went against it.

And, lastly, when all else has failed and the other party crosses the red line anyway, Putin punches fast, hard, and unexpectedly, and often in a different theater than where the provocation has occurred. We saw this when Russia destroyed the oil smuggling network that the US and Turkey had set up in Northeastern Syria. We saw it again when Russia saved Mr. Erdogan from a US-backed coup only thirty minutes before he probably would have been captured.

Joe Biden

Joe Biden loved to tell the story on the campaign trail about his interaction with a black gangster named “Corn Pop” when he was a lifeguard in college. They almost had a fight but Biden brought a chain with him, and they later became friends. The fact that he even tells this tale signals that Biden has no real experience against a serious enemy. Men with street credibility don’t need to tell stories. They are known and respected.

The reality of Biden’s career is that he has played second fiddle to stronger leaders and only appears to have gotten the presidential nomination because it was his turn and he was deemed to be controllable by his handlers. Biden obtained the presidency through a fraud seen so openly that he has one of the lowest presidential approval ratings in history.

Biden and Putin met for the first time alone in 2011 for talks in Russia. According to Mike McCormick, who was Biden’s stenographer, Biden was halfway through his talk when suddenly the microphone, cameras, and lights were turned off and Putin and all of the media walked out leaving Biden humiliated. Something similar happened to Biden in China a few months later.

This is probably what Biden was referring to when he recently said that Putin was “a killer” with “no soul.” That interaction tells us exactly what Putin thinks of Biden. He considers him to be a weakling with no substance.

Biden’s team is stacked with Russophobes who are motivated by the desire to finish what they began in Ukraine under Obama. They believe they can successfully use information war and dirty tricks to isolate Russia from Europe and control all the energy conduits. Whether due to hubris or ignorance, they do not believe Russia would dare to strike back at the real instigator of the war in Ukraine.

Biden’s response to a Russian strike would probably be a plaintive high pitched, “c’mon man!” However, if Kamala Harris is making the decisions the risk of escalating to a nuclear response is much higher. The problem is that both Biden and Harris were picked and installed by a “power behind the throne,” so it is unclear exactly who would be making the decision of how to respond.

The Imminent Danger of the Current Imbroglio

There is no doubt that the US intends to create a war in Ukraine before the Nord Stream 2 Pipeline can be finished. This will happen within months if not weeks. It is also clear that Zelensky is being placed under tremendous pressure to force Russia into defending Donbass.

Russia has drawn a red line around Donbass. Ukraine had agreed to a peaceful resolution through the Minsk Accords. But with US encouragement, Kiev violated everything they agreed to, making it now politically impossible to re-integrate Donbass into Ukraine.

If Zelensky invades Donbass, then not just Ukraine, but the USA and NATO will be viewed by Russia as having crossed an inviolable red line. Yes, Russia will be forced to defend Donbass, because Putin will not allow Russians to be subjected to genocide. Russia does not want to fight Ukrainians, whom despite the jokes, they view as their Russian brothers. They are frustrated and angry that the USA has forced them into this position.

For this reason, I believe that Mr. Putin will do something that the Biden regime is not expecting with similar psychological impact to the sudden turning off of the lights and cameras. He will find a way to inflict debilitating pain on the decision makers who have forced Russia into intervening in Ukraine.

In addition to defending Donbass, Russia may strike the USA in a different theater. But they will do so in a way that cannot be confused with a nuclear attack. Unlike the previous chess moves that allowed the US leadership to save face, this one will neutralize and publicly humiliate the USA and the Biden regime as a paper tiger.

The Narrow Window of Technological Supremacy

While the US was busy invading third world countries as part of the War on Terror, Russia was quietly developing their defense technologies. They have now achieved technological supremacy over the USA in three areas: air and missile defenses, hypersonic missiles, and electronic countermeasures (ECM).

In the area of air defenses the Russian S-400 is an extremely capable platform which the West has very little experience fighting against. Russia has the capability to impose a no fly zone within about 500 kilometers of its S-400 batteries, of which there are several from Crimea to Kaliningrad. Israel’s use of the F-35 to bomb Syria has given the Russians live data on NATO’s most advanced stealth fighter.

The S-500 space defense system is scheduled to enter service in 2021. Since the S-500 can defend against ICBMs it may affect the balance of power of mutual assured destruction (MAD).

The Zircon and Khinzal hypersonic missiles are currently in service and are the most effective anti-ship weapons in the Russian arsenal that we know of. Their standoff range enables strikes on enemy ships from 500 to 2,000 kilometers. This means that Russia has the ability to strike ships in the Mediteranean and North Sea using assets based on Russian soil, not even counting the assets based in Latakia, Syria. NATO forces currently have no defense against hypersonic missiles.

Russian ECM capabilities have been somewhat exaggerated by news stories about the 2014 encounter with the USS Donald Cook. The Donald Cook was allegedly shut down by ECM attack while an SU-24 overflew the vessel. However, more accurate sources noted that any ECM attack, if there even was one, would have been executed using ground-based equipment, not the Su-24 fighter. If this attack really happened, the US Navy has presumably hardened its vessels against ECM in the seven years since.

We do know that Russian ECM systems in Syria were able to disable the vast majority of Tomahawk Missiles fired at Syria in April 2017. Other than aircraft carriers, the primary American method of projecting power is Arleigh-Burke class destroyers such as the USS Donald Cook which carry about 50 Tomahawk missiles each. The 2017 exercise in Syria probably indicates that Russia is able to jam volleys of Tomahawk missiles with better than 90% success. The remaining 10% of the subsonic Tomahawks can be easily shot down by anti-aircraft batteries.

The question is whether the US Navy has found a way to harden the Tomahawk missiles against Russian ECM since 2017. If not, then given the much smaller size and number of missiles that can be carried by Navy attack aircraft, the US Navy’s primary weapon for ground attack has no teeth against Russian targets. Of course in any conflict, the first target of NATO’s “wild weasel” aircraft will be SAM radars and ECM equipment.

Conclusion – Biden has Created Strong Incentives for Russia to Strike First

The US is spending billions to catch up technologically, and the window of Russian supremacy may only last for two or three years at most. Russia can be expected to reach the peak technological advantage over NATO in late 2021 after the S-500 system has been fully deployed. However, the Donbass crisis may force Russia to act sooner than they are comfortable.

If Russia were to use the window of supremacy to attempt a debilitating strike on the US military the US Navy is the most likely target. Ships are the most exposed, are not located inside another country’s borders, and are also the primary means of projecting US power. However, I would not rule out a non-missile attack on DC. For example, there are many ways that the US power grid could be turned off without using missiles. The ensuing domestic chaos might prevent the US from responding.

This is a very dangerous situation for the world because it could easily escalate to World War III or nuclear war, depending on the Biden Administration’s reaction. Part of the problem is that it is not clear who is really in charge of the Whitehouse. A nuclear response to a devastating conventional weapons defeat would be a disaster for both sides.

Russia will only strike the USA if they believe they have no other choice. What they have learned from seven years of sanctions, attempted coups, fake poisonings, and other provocations is that the US will continue this behavior for as long as Russia continues to accept it, or until Russia is broken and conquered. In short, Biden’s team may have finally convinced Russia that they have no other choice.

President Biden has handed Putin the justification for a first strike by openly stating his intention to conduct a cyber attack on Russia “soon.” That is a public declaration of war. The fact that the Russian ambassador was recalled from Washington and has not been sent back should be a wakeup call to America that DC itself is on the potential target list.

For these reasons I believe that there is a high probability that Russia will strike first before NATO can fully put in place the forces for planned exercises for this Summer. The strike will probably be non-nuclear, focused against US forces only, and its purpose will be to delegitimize the US power in the eyes of the junior members of NATO, and to weaken or cripple the US ability to project power.

If China and Iran see Russia strike the US military, it would not be surprising if they also pile on using their own hypersonic missiles to destroy US Navy assets in the Persian Gulf and South China Sea.

The Biden regime’s underestimation of Russia and failure to heed Putin’s warnings have created conditions which make possible a sudden and humiliating defeat of the US Navy, which could effectively end the US ability to project power overseas.

However, wars are rarely short, and victories rarely decisive. For this reason it would be better for all parties to de-escalate the conflict immediately. Unfortunately, the Biden regime is the only one in a position to do that, and they have shown no intention of doing so.


River to Sea Uprooted Palestinian   
The views expressed in this article are the sole responsibility of the author and do not necessarily reflect those of the Blog!

Wednesday, 24 March 2021

Sitrep: The Unipolar moment is over; the Multipolar moment is here.

  March 22, 2021

By Chris Faure for the Saker Blog

Shortly after Mr.Biden characterising Mr.Putin as a killer and more, Mr.Putin invited Biden for a public and live online  discussion, saying that it would be beneficial for both the N.American as well as the Russian people.

This morning we find this bluntly devastating shot across the bows from the Russian Foreign Affairs ministry.

The final sentence, not included in the image, reads as follows:  “Responsibility for this lies entirely with the United States.”

Setting this in context, the contrast between Mr.Lavov’s ongoing visit to China, and the so-called ‘strategic’ meeting between the United States and China at the end of last week, cannot be more stark.

 #PhotoOfTheDay –  Sergey #Lavrov on his way to greet FM #WangYi in  China 
 #Lavrov: #China  is a truly strategic partner and a like-minded country for #Russia  Our cooperation on the international stage is having a stabilising effect on the global and regional situation.
#Lavrov: #Russia believes that our dialogue with #China based on trust and mutual respect should provide an example for other nations, including those that are trying to develop ties on different principles not based on equality.

At the very same time, Mr.Putin and Mr Shoigu are taking the air on the Taiga in Siberia.  I wonder if the western governments have figured out why now?

“ Vladimir #Putin is spending the weekend in #Siberia.  The President together with Defence Minister Sergei Shoigu enjoys walking in the #taiga forest and riding an all-terrain vehicle.  Also, Sergei Shoigu showed the President his workshop.”

http://en.kremlin.ru/events/president/news/65178

In the next few hours we will receive Mr.Lavrov’s translated speeches from his China visit.  Some of it is already published.  Take a look at what Mr.Lavrov described as ‘dynamic cooperation“:

“We regard the new era of Russian-Chinese relations, which you have mentioned, primarily in the context of the broader situation on the international stage. It is undergoing a very deep transformation and the strengthening of the new centres of economic growth, financial might and political influence. Regrettably, the objective trend for a rise of a truly multipolar democratic world is being hindered by some Western countries led by the United States, which would like to preserve their domination of the global economy and international politics at all costs and to force their will and their demands on each and all. In response to this, Russia and China are promoting a constructive unification agenda. We want the architecture of international relations to be fair, democratic, capable of ensuring stability and based on broad interaction of states and their integration associations, just as we are doing together with our Chinese friends by promoting integration in Eurasia.

China is a truly strategic partner and a like-minded country for us. Our cooperation on the international stage is having a stabilising effect on the global and regional situation. Russia believes that our dialogue with China based on trust and mutual respect should provide an example for other countries, including those that are trying to develop ties with Russia and China on different principles that are not based on equality. This is not acceptable to us or our Chinese friends. We will continue developing our foreign policy constructively and flexibly, showing readiness for compromise but exclusively on the basis of mutual respect and a balance of interests.”

There is however a twist in this lovely tale and it is the one of economic influence and we know now which direction both Russia and China (and a host of other countries) will take in the short term.  They will remove the sanctions weapon from the hands of the United States including Europe.  Let’s take a look at a few more of Mr.Lavrov’s comments.

“The US sanctions risks need to be alleviated by switching to alternative currencies and moving away from using the dollar, Russian Foreign Minister Sergey Lavrov said.”

“The minister said the US is aiming to limit the technological development of Russia and China, so the two countries need to strengthen their independence.”

“According to the Russian Foreign Minister, the US and other western countries are no longer capable of using classical diplomacy and only resort to one tool on the international arena: sanctions.”

“We must form the widest possible coalition of countries that will fundamentally oppose this illegal practice,” the Russian Foreign Minister concluded.”

As geopolitical watchers and analysts, we’re always looking for the signals that frequently just go up in smoke.   This time however the signals from Russia and China are not going up in smoke but being presented in pictures in photo essays, and in clear language.  From the last few days we can learn a few things:

  • China and Russia are friends and will remain friends and will work together where their interests coalesce.  Their interests coalesce right here in Lavrov’s words:  “….. architecture of international relations to be fair, democratic, capable of ensuring stability and based on broad interaction of states.”  If that statement confuses you, in short, it means right across our world.
  • Sanctions will be removed as a weapon.
  • The petrodollar is on its last legs.
  • The clock for the final battle is ringing.  The only weapons remaining that will be allowed to the failing hegemon will be NATO (which, according to many of our serious analysts, is a paper tiger) and the ability to use nuclear and conventional weapons.  I will not comment on that as I am not qualified in the field.   The ability of the current and failing hegemon to do damage economically, is being curtailed.   We can look forward to a different economic reset, with countries taking their power back using their own currencies and other alternatives.   (This is not the reset from the WEF).  Then we will see what happens to the sphere of weapons because they may become a last resort.
(On a humorous note, it looks like the Russian Foreign Affairs ministry has resorted to photos with captions, hoping they can reach the failing hegemon with pictures, because there is such a great problem to reach them with diplomatic words.  The growth of the adult coloring book industry in the West may have been the deciding factor lol. )

River to Sea Uprooted Palestinian   
The views expressed in this article are the sole responsibility of the author and do not necessarily reflect those of the Blog!

Sunday, 10 January 2021

عام التحوّل العظيم…

 باريس – نضال حمادة

يواجه الغرب عاصفة كاملة. لقد فشل في مواجهة الوباء وفشل نظاميّ للديمقراطية الليبرالية. وأيضاً فشل اقتصاداتها الغارقة في ركود عميق، بينما تتقدّم الصين في السباق. والآن، كما نرى، تواجه الولايات المتحدة أسوأ أزمة سياسية لها منذ الحرب الأهلية.

لقد جادلت بأنّ عام 2020 سيُنظر إليه على أنه عام التحوّل العظيم، عندما ترى غالبية سكان العالم الصين كقائد عالمي جديد. سيؤدّي انهيار النظام السياسي الأميركي إلى تسريع تكريس هذه الزعامة بشكل كبير.

لقد تمّ التقليل من شأن طبيعة الأزمة السياسية الأميركية إلى حدّ كبير، وأسبابها عميقة للغاية. فالبلاد منقسمة إلى نصفين، مستقطبة بشكل ميؤوس منه ونظام حكومتها مشلول. السؤال الأساسي هو: ما هي الأسباب الكامنة وراء هذا الوضع؟

تشهد أميركا حالة من التدهور منذ الثمانينيات، وبشكل كبير منذ عام 2008. على مدى أربعة عقود، عانى نصف السكان من هبوط أو ركود في مستويات المعيشة. لقد وصل عدم المساواة إلى مستويات الثلاثينيات من القرن الماضي إنْ لم يكن قبل ذلك. انتهى الحلم الأميركي.

طوال تاريخها تقريباً، كانت أميركا في صعود. لم يعرف عنها أيّ شيء مختلف. لقد انتهى هذا العصر. من المتوقع أن تصبح أميركا أقلّ أهمية بكثير. يتمّ استبدالها بسرعة باعتبارها القوة الأولى في العالم من قبل الصين.

المؤسّسة الغربية غير قادرة على قبول ما لا يمكن وصفه إلا بنهاية الغرب كما عرفناه. إنّهم يتشبّثون بالماضي وينكرون الحاضر ويعيشون في خوف من مستقبل مختلف تمامًا. نحن نشهد نقلة نوعية عميقة.

كان من الممكن أن يكون التراجع أسرع لو لم تلجأ أميركا إلى تحويل الدولار إلى دولار بترودولار، والذي بدوره أبقى المطابع مستمرة وتمويل النزعة العسكرية وكلّ شيء بينهما من دون هذا النوع من التضخم الذي من شأنه أن يشلّ أيّ بلد آخر.


River to Sea Uprooted Palestinian   
The views expressed in this article are the sole responsibility of the author and do not necessarily reflect those of the Blog!

Sunday, 11 October 2020

When Wall Street flies with Icarus’ wings

When Wall Street flies with Icarus’ wings

October 08, 2020

by Jean-Luc Baslé for The Saker Blog

Wall Street is forever rising. The S&P500 index rose to 3,581 on September 2nd, 2020 – the highest level it has ever reached since its creation. This makes no sense. Wall Street is a reflection of the state of the economy which is in recession since February[1], the worst recession since 1929. How can share prices rise when the economy is falling? To answer this question, let’s analyse the economic policy of the United States these past few years, taking Federal Reserve Chair Jerome Powell’s speech of August 27th, 2020 as our starting point. Going back in time, we see that American leaders ignored the fundamental laws of economics. We note that foreign leaders, such as the European Central Bank governors, followed the same path. We conclude that stock prices do not reach the sky, and that the United States is caught in a bind from which the only way it can extricate itself is through a dollar depreciation. This bodes ill for the American Empire. The dollar is one of its main pillars.

Jerome Powell questions the validity of quantitative easing

Depending on their editorial stand, the media understood Powell’s speech as a return to inflation, giving greater attention to unemployment. But this summary ignores the essence of the message which questions the validity of quantitative easing – a policy followed by the Federal Reserve since November 2008. This is what Powell said: “With interest rates generally running closer to their effective lower bound even in good times, the Fed has less scope to support the economy during an economic downturn by simply cutting the federal funds rate.” In short: pushed to its limit, quantitative easing loses its capacity to alter employment and inflation. Quite logically, Jerome Powell and the Federal Open Market Policy (FOMC) call for a softening of the rules governing inflation and employment: “appropriate monetary policy will likely aim to achieve inflation moderately above 2 percent for some time”, and “a strong labor market, particularly for many in low-and moderate-income communities”.[2] This was understood as a return to inflation which it is not. It is an attempt to rescue quantitative easing while waiting for a return to more traditional economic policies.

By dropping surreptitiously quantitative easing, Jerome Powell is sending a message to Congress: economic policy cannot rest solely on monetary policy. Congress has at its disposal another tool: the budget. Over the past thirty years, priority has been given to monetary policy for several reasons. For conveniency reasons: monetary policy is essentially defined by one man, the Federal Reserve Chairman with the FOMC congruence. Budgetary policy, on the other hand, is defined by Congress and the President. It takes time for the two to agree, especially if Congress is split between a Democrat and a Republican majority. For efficiency reasons: changes in monetary policy are felt quite rapidly in the economy: six months to a year. It takes a lot longer (one to two years) for changes in the budget to be felt. For practicality reasons: budgetary measures imply taxation or indebtedness. Taxation is not very unpopular with the electorate, and indebtedness, if overused, leads to higher interest rates and slower economic growth. For all these reasons and the more theoretical ones set out by Milton Friedman and the monetarists, monetary policy became the policy of choice for the last thirty years, with quantitative easing being its most advanced form.

Priority being given to monetary policy with the budget playing second fiddle, the budget deficit should have come down and, with time, turned into a surplus. It did not happen. Worse, it has grown over the last twenty years to reach -4.6% in 2019. The initial figure expected for 2020 (-4.6%) will be substantially larger due to the Covid-19 virus. The $2,200 billion CARES Act approved by Congress in March to provide much needed relief to individuals, families and businesses, will translate into a much higher deficit, and a much higher level of debt.

Quantitative easing and the economy

Excessive money creation by central banks is anathema to financial markets since it is synonymous to inflation, higher interest rates, slower growth and the collapse of the stock market. It must be prohibited at all cost. Yet, that’s what quantitative easing is all about, and quantitative easing saved Wall Street and the economy after the 2008 subprime crisis. How can this be? In the fall of 2008, banks’ balance sheets were loaded with corporate bonds whose market value were well below their face value. To avoid a collapse of the market, the Federal Reserve bought the bonds, in effect replacing junk bonds with cash on banks’ balance sheets. The Fed’s bailout commitment totaled $29 trillion.[3] In view of this amount, it is no wonder that the program worked… to Wall Street’s satisfaction. Trust returned, the economy took off, and shares regained and exceeded their previous values. All is well and good, except the Federal Reserve exceeded its mandate. Its job is to provide the liquidity the economy needs to grow and achieve full employment without generating inflation. Under normal circumstances, the banks whose equity was washed out by bad investments, due to senior management’s poor decisions, should have been allowed to fail. To avoid a collapse of the economy, the government would have bought the banks’ shares at their market value, fired the management, and re-introduced the banks on the stock market once their business was back to normal. But these were no “normal circumstances”. Neither Congress which oversees the Federal Reserve policy, nor Barack Obama who was anxious to move past the crisis, blamed the Federal Reserve for outstepping its legal framework. As for Wall Street, it had every reason to rejoice. Not only was it saved from total collapse, but within five years the market value of its stocks, as measured by the S&P500, exceeded its pre-crisis value. It has more than doubled (graph 1).

The Federal Reserve’s quantitative easing did not result in a depreciation of the dollar, as could have been expected. In fact, the subprime crisis strengthened its value somewhat, as it was perceived by foreign investors as a safe haven to protect their wealth in a tumultuous environment. This strength of the dollar and the relative stability of foreign exchange market is also due to the interconnexion of world’s economies. The subprime crisis first emerged in the United States but spread rapidly around the world. Faced with a potentially damaging economic crisis, world leaders of the largest twenty economies – the G20 – met in Washington DC on November 14-15, 2008, i.e. only two months after Lehman Brothers’ bankruptcy. Asian and European central banks agreed to espouse the Federal Reserve’s quantitative easing policy. Money creation around the world being essentially the same in relative terms, currencies retain their value in relation to each other, as shown by graph 2 (note: exchange rates are expressed as an index, and the value of the pound sterling and the euro have been inversed to make them comparable to the yen and yuan).

Money creation saved Wall Street without depreciating the dollar, but what about employment? The United States’ performance is excellent. The December 2019 unemployment rate is 3.5% – a rate lower than all other advanced economies with the exception of Germany and Japan. The picture is less rosy if one looks at it from a different angle: the length of time it takes to return to full employment. It took 15 months after the 1973 recession, 30 months after 1990, 46 after 2001 and 75 months after 2008, i.e. over six years (graph 3). Quantitative easing which served Wall Street so well, did little for Main Street. Of course, as noted by Jerome Powell, there are other factors to be considered besides monetary policy when studying labor issues. Nonetheless, the conclusion is inescapable: quantitative easing worked better for Wall Street than it did for Main Street.

What about inflation? Ever since Federal Reserve Chairman Paul Volcker put a brutal end to stagflation[4] in letting the overnight rate go over 21% in June 1981, inflation has been subdued. Quantitative easing which is an inordinate increase of money in the economy should have, according to the quantity of money theory, led to inflation. It did not. The large quantity of money injected in the economy by the Federal Reserve had no impact on the price level. Graph 4 compares the velocity of money[5] with the Consumer Price Index – the velocity (blue line) is inversed to underline its exceptional rise in the last few years. Full employment did not lead to higher prices either. Jerome Powell observes that “the historically strong labor market did not trigger a significant rise in inflation”, as the Phillips Curve[6] would predict. He then notes that “inflation that is persistently too low can pose serious risks to the economy”. Clearly, the United States is in a peculiar situation where neither money creation nor full employment translates into higher prices, as economic theories tell us. Several hypotheses may explain this abnormality.

The fairly rapid opening up of the American market[7] in the early 1990s, followed by the creation of the World Trade Organization in 1994, shaped a new environment in which the procurement of a given product was no longer restricted to the home country. Bilateral trade relations among advanced nations became global to include developing nations, such as China which joined the WTO in 2001. Competition among manufacturers became global, pushing prices down. Corporations offshored their production to take advantage of lower wages in developing nations. This weakened the negotiating power of trade unions who were faced with an unpalatable deal: accept lower wages or lose jobs to the Chinese. The digital revolution also played a role in bringing costs down with many firms “rightsizing” their labor force thanks to the adoption of the personal computer. Finally, Ronald Reagan’s decision to fire 11,000 air controllers in 1981 had a tremendous impact on middle income employees who realized status did not protect them anymore: they could lose their jobs as easily as manual workers could. These events put an end to what was known as cost-push inflation – an overall increase in prices due to higher labor and raw material costs.

Increased energy efficiency, as measured by the ratio of oil consumption to GDP[8], also helped contain inflation. The ratio doubled over the last twenty years. While a barrel of oil produced $450,000 of economic wealth in 2000, it produced $920,000 in 2019. This is why the rapid rise in oil prices over the last fifteen years had little if any impact on the state of the world economy, as opposed to shocks inflicted by the 1973 and 1979 price hikes.

In summary, inflation remained subdued due to globalization, the Reagan and digital revolutions, and energy saving. These watershed events spare the United States a rise in price levels that quantitative easing would normally have brought up. Quantitative easing is not inflation-free, it benefited from exceptional conditions. With respect to employment, the Federal Reserve’s performance is dismal when compared to previous periods. But Wall Street has every reason to be satisfied with it.

The Federal Reserve’s monetary policy in the recent past.

The decoupling of quantitative easing and inflation partially explains why Jerome Powell is distancing himself from this much vaunted but, in truth, inefficient policy. Besides the dual, yet incompatible inflation-employment objective Congress assigned to Federal Reserve, he must also watch over the largest banks’ financial health to make sure it remains strong. In fact, this was the main role the Federal Reserve Act assigned to the Federal Reserve in 1913. This duty is crucial. Economic crises often arise from a bank failure, as was the case with Lehman Bros.’ bankruptcy in September 2008. From this standpoint, Jerome Powell deserves our praise for he averted two crises in the recent past even though one may argue about the reasons they were conducted.

The first rescue took place in September 2019. Without warning, interest rates on the “repo” market shot up to 10% in mid-day on September 17th., 2019.[9] This market is a corner stone in Wall Street’s architecture. If it fails, the whole structure crumbles. The Federal Reserve had to act promptly to calm the market down. This is what it did in injecting $41 billion into the market that very day. Interest rates plummeted. On September 18th, they had returned to their September 16th level. The cause of this ephemeral panic remains a mystery. But the fact that the Federal Reserve had to keep intervening for several months, leads one to conclude that structural causes might have been at work.

This incident was the prelude of a much worse crisis which was averted thanks to the combined effort of the Federal Reserve and Congress. On February 19, the S&P500 reached a new high: 3,386, then dropped abruptly reaching its lowest level in the year: 2,237 on March 23, i.e. a 30% fall in 36 days. This time, the Federal Reserve was slower in reacting. It’s only on March 11th, nearly a month after the stock market began to tumble, that it began injecting liquidity into the economy, propping up the stock market (graph 5). On March 13th, two Congressmen from the Democratic Party offered to help people who lost their job due to the pandemic. It took the form of The Coronavirus Aid, Relief, and Economic Security Act, or CARES Act for short, which was unanimously approved by the Senate on March 25th and signed by Donald Trump on the 27th. It took only 15 days to ratify a law granting $2,200 billion, or about 10% of the gross domestic product – the largest amount ever approved in the history of the United States – to dodge an economic crisis in the making. Considering that by March 11, only 37 people had died from the virus while the S&P500 had already lost 19% of its value, one may question the politicians’ motivation. Was it the Covid-19 or was it Wall Street which led them to act decisively? Generous as it is to the unemployed, the CARES Act is equally generous to corporations which already benefited from the Federal Reserve’s action. Wall Street resumed its rise.

May the stock market rise to the sky? One is tempted to believe it when considering its performance. Could investors be the victim of an “irrational exuberance”? Not so, say some analysts who attribute the market rise to the “big tech” corporations (Google, Amazon, Facebook, Apple, Microsoft), also known under the acronym GAFAM. They account for about 20% of the market value and they are pooling up the market. But, excluding them from the S&P500 would mean excluding them – as well as other outperformers such as Tesla, Netflix, Nvidia, or Salesforce – from the American gross domestic product. One cannot dissect the market according to one’s view. The market is a reflection of the economy at large: the more profitable the corporations, the higher the value of their shares. Right? Wrong. Over the last few years, the stock market is disconnected from the economy. Net income has been flat since 2017 while share values gained 43% (graph 6). This makes no sense. The market is acting irrationally. It’s a matter of time before it corrects itself.

Returning to orthodoxy

In the 50’s and 60’s, the American government was a paragon of virtue. The budget was in quasi-equilibrium. There was little debt, no inflation, and the workforce was fully employed. Things have changed since then. The deficit is rising, the debt is growing ever-larger, and employment is not what it is purported to be. In the trio it makes up with the Federal Reserve and Wall Street, the federal government is the most important element for it defines the economic policy.

This brings us back to Jerome Powell’s speech. A lesser importance granted to monetary policy, as he posits, means a great one given to budgetary policy, assuming of course that the government has the latitude necessary to do so. This is not the case. The deficit is on a downward slope ever since the late 1960s, with the exception of a four-year gap from 1999 till 2002[10]. The federal debt rose from 40% of GDP in the early 1980s to 107% in December 2019. The combined Federal Reserve/CARES Act rescue package pushed it up to 137% as of June 30th – a level higher than at the end of World War II (119%). Giving a greater role to budgetary policy means either higher taxes or more debt, or both. Taxes have never been very popular with the electorate, and the federal debt reached a level beyond which the United States’ credit rating may fall and the value of the dollar may drop. Authorities are caught between a rock and a hard place: monetary policy lost its effectiveness at a time the budget deficit should be reined in.

With 29.7 million unemployed (including the 13.6 million “gig” workers with no insurance coverage), the situation could quickly become worrisome, politically and socially. Aware of the danger, members of Congress had hoped to prolong the CARES Act for the unemployed, but electoral rivalry with the upcoming presidential election quickly set in and any attempt to maintain some of the benefits of the CARES Act were doomed to failure. On August 8th, Donald Trump signed an Executive Order granting $300 a week to unemployed people – humanitarian and electoral reasons no doubt explain his decision. The Center for Control Disease and Prevention declared a moratorium forbidding tenant evictions until the end of the year, bringing some relief to the most vulnerable families. Praiseworthy as the decision might be, it carries a risk: bankruptcy for real estate owners who, deprived from rental revenues, may not be able to reimburse their bank loans. In turn, this may weaken the banks’ financial health and be the cause of a crisis.

The situation is becoming inextricable. The on-going deterioration of the economy increases the budget deficit and the public debt beyond reasonable levels while monetary policy has lost its effectiveness. The government’s two main levers to direct the country’s economic policy have become ineffectual. Due to the presidential election, no new measures are likely to be implemented between now and February or March – a time lapse during which the economy is likely to deteriorate further.

To prevent such an unwelcome development, Ms. Loretta Master, president of the Federal Reserve Bank of Cleveland suggested on September 23rd to credit every American’s bank account with “digital dollar” directly from the Federal Reserve. Her proposal was well received. Market analyst Wolf Richter calculates that a $3 trillion transfer would translate into a $28000 sum for a household of two adults. This would prop up consumer spending and pull the American economy out of recession. But it would also create inflation and depreciate the dollar. A digital dollar is a dollar. Ms. Master’s proposal is another form of money creation. The total of the Federal Reserve’s balance sheet which amounted to 40% of the gross domestic product in the 1960s, rose to 100% in December 2012. It now stands at 125%. Is the United States on its way to repeating the Wehrmacht Republic’s mistakes of the 1920s? What will happen to the dollar, if the Federal Reserve pursues its money creation policy? And what will happen to the United States’ credit rating?

Icarus’s wax is melting

Whatever measures are eventually agreed upon the public debt will rise. Who will finance it? About 70% of it is presently financed by the American public, federal agencies and the Federal Reserve. The remaining 30% is financed by foreigners. The percentage is dropping. In the summer of 2012, foreign investors held 34% of the public debt. The trend is likely to continue if we use gold prices. Gold is a yardstick of investors’ confidence. For several years, worried investors have been exchanging their dollar-denominated U.S. Treasury holdings for gold, pushing up its price. Graph 7 is most interesting in that it shows the investors’ change of mood. Following the 2008 subprime crisis, they put their financial assets into dollar and gold. Today, they are moving out of the dollar into gold. This is not a good sign for the dollar.

Meanwhile, the stock market is fumbling. After reaching its highest value ever on September 2nd (3,581), it is falling. Share values, like Icarus, do not rise to the sky. If the stock market fall continues which is most likely due to the state of the economy, the American recession will translate into a world recession, since the U.S. economy accounts for 15% of the world economy. In turn, the world recession will aggravate the American recession in a vicious circle analogous of the Great Depression. This could mean the demise of the American Empire.

Jean-Luc Baslé is a former Citigroup (New York) Vice President, Columbia University graduate, Princeton University graduate, 20 years in the United States, author of “The International Monetary System: Challenges and Perspectives” (1982), “L’euro survivra-t-il ?” (2016).

  1. National Bureau of Economic Research. ↑
  2. “New Economic Challenges and the Fed’s Monetary Policy Review”, Jerome H. Powell – August 27, 2020. ↑
  3. $29,000,000,000,000: a detailed look at the Fed’s bailout by funding facility and recipient. James Felkerson, Dec. 2001. ↑
  4. Stagflation is an unusual combination of inflation and recession (unemployment). ↑
  5. The velocity of money is the ratio of money to the gross domestic product. ↑
  6. Higher level of employment leads to higher wages and higher inflation. ↑
  7. In the 1960s, U.S. imports amounted to 5% of gross domestic product. They averaged 16.5% in the last decade. ↑
  8. Gross domestic product ↑
  9. A repurchase agreement “repo” is a short-term secured loan: one party (usually a financial institution) sells securities to another and agrees to repurchase them within a short period of time. ↑
  10. This was due to the “peace dividend”. ↑

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The views expressed in this article are the sole responsibility of the author and do not necessarily reflect those of the Blog!

Monday, 7 September 2020

The Quiet Imperialism

The Quiet Imperialism

September 05, 2020

By Francis Lee for the Saker Blog

Many if not most Americans have always been in denial about the imperial ambitions and practices of US foreign policy. There are honourable exceptions – Noam Chomsky, Tulsi Gabbard come immediately to mind. But on the whole the direction of US geopolitical strategy has been guided and implemented by a small cabal of geopolitical fanatics; these are ensconced in various state and non-state organizations such as the media and various think-tanks and have had a wholly negative effect on US foreign policy, both in practise and theory. The US’s global adventurism has been regarded by the US public, insofar that it concerns itself with such matters, as being conceived in good faith and benign in intent. Unfortunately, the facts don’t conform to the popular trust that American citizens put in their government, particularly the Deep State, National Security Agencies, the political elites, and the Military Industrial Complex, not to mention the mainstream media.

This popular narrative of America qua global good-guy was very beautifully illustrated in a novel by the British author Graham Greene. The novel The Quiet American was set against the background of the first Indo-China war, with one of the central characters, Alden Pyle, an ostensibly idealistic young American Aid worker, who presented himself as a proto third-way reformist opposed both to the excesses of French colonialism on the one hand, and Chinese Communism on the other. But in fact he was nothing of the sort, and his baleful motives are soon uncovered by the cynical, world-weary British journalist, Thomas Fowler. As it turned out Pyle had been working for the CIA all along. The novel itself has been made into two motion pictures. Both are well worth watching and instructive. The novel was of course an allegory on what was happening and what has always been happening in geopolitical national rivalries and machtpolitik.

Thus US imperialism is the theory and practise which dare not speak its name. In the third world, however, and increasingly in the developed world, the facts are plain to see for all but the ideologically purblind. The US, particularly since the neo-conservative ascendancy, is a rampaging imperial juggernaut, with a blatant empire-building agenda. The US imperial project was from 1945 onwards held in check by social democratic obstacles in western Europe, the existence of the Soviet and East Asian Communist bloc and national anti-colonialist movements in the south. But with the collapse of communism, the ongoing enervation and retreat of social democracy, and the stalling of the anti-colonial struggle in the south, the rapacious beast of American imperialism was off the leash.

Moreover, the US has made it perfectly clear that it will not tolerate the reconstitution of any economic or military power capable of challenging its global domination. (see The Wolfowitz Doctrine.) To this end it has arrogated to itself the right to wage ‘preventive wars’ against those who may sometime in the future threaten its global ambitions. The global system has been unipolar but now its dominance is being challenged by new adversaries, particularly Russia, China, and perhaps Iran and the Americans are determined to contain what they regard as a strategic challenge.

This project is assuredly not lacking in ambition. It aims at extending the ‘Monroe Doctrine’ to the whole planet; the establishment of a sort of US global suzerainty. This would be difficult for the US to accomplish alone – it therefore has to form alliances and spheres of influence with other (subaltern) partners in the developed world. Roughly speaking the geopolitical configuration for America’s global project is as follows.

The phase of the (present) global development of capitalism is characterised by the emergence of a collective imperialism. The entirety of the Americas, Europe west of the Polish frontier and Japan, to which we should add Australia and New Zealand, defines the area of this collective imperialism. It ‘’manages’’ the economic dimension of capitalist globalization and the political military dimension through NATO, whose responsibilities have been redefined so that in effect it can substitute itself for the United Nations.

This requires some skilful diplomatic balancing between the US and its junior partners – particularly within the EU, where conflict between certain European states and the US is always a possibility. This is clearly evident in the spat between Germany and the US with the contretemps over Nordstream-2 and the stationing of US troops in Germany. To this end the mobilization of various euro-quisling elites – the UK, Poland, and according to Donald Rumsfeld the ‘new’ (Eastern) Europe – are vital for America’s policy of divide and rule in this area. Moreover the globalization agenda (the economic prong in the US global offensive) has become the received wisdom in the EU. As for the Euro it has become a satellite currency of the dollar, although it is in fact a stronger currency since it is based upon a euro economy which runs persistent trade surpluses with the United States (as does most everybody else).

Thus the EU – with the possible exception of France – has tended to meekly follow in the wake of the US hegemon ensnared in an Atlanticist doctrine for which the raison d’etre – if there ever was one – definitively ended with the cold war. And the world pays a heavy price for this.

According to Samir Amin:

‘‘The US economy lives as a parasite off its partners in the global system, with virtually no national savings of its own. The world produces while North America consumes … The fact is that the bulk of the American deficit (on Federal and Current Account) is covered by capital inputs from Europe and Japan, China and the South, rich oil-producing and comprador classes from all regions in the Third World – to which should be added the debt service levy that is imposed on nearly every country in the periphery of the global system. The American superpower depends day to day on the flow of capital that sustains the parasitism of its economy and society.’’ (1)

This was written by Amin back in 2006, but the US’s drive has not really altered that much in the interim. If anything it has become even more bellicose in pursuit of its quest for world hegemony. However, today, we not only have a clash of interests with the Germans and the US over the above issues. And despite the nominally peaceful intentions between the US and its allies (vassals) eventually the rising nations find that pursuing their own interests hits the barriers of the prevailing international order. And the further the old powers try to sustain their outdated settlement, the more the ascending powers – both within Europe and without – are frustrated. The entire post-war system itself becomes a source of international tension.

NATO exemplifies this. Established as we saw in a different era to coordinate western military power since the Cold War 1, after the end of that war NATO has turned into a disruptive force. Pursuing an ‘open-ended and ill-conceived eastern expansion’ the EU has rekindled inter-state tensions instead of assuaging them. (2) This illustrates a broader trend; that conflicting attitudes to the entrenched institutional structures generate dissension triggered by outdated economic and strategic pressures. National differences are expressed and often inflamed through opposing or supporting the existing and outdated systems and rules.

It could be said that NATO is a locus classicus of a dysfunctional bureaucracy. It exists ‘in order to solve the problems which it created.’ Or as Schumpeter first noticed, that ‘’ … in Egypt a class of professional soldiers formed during the war against the Hyskos persisted even when those wars were over along with its warlike instincts and interests … ‘‘ He noted with a pithy summary of his viewpoint that ‘’Created by wars that required it, the machine now created the wars which were required.’’ NATO anyone!?

With regard to International Political Economy, It is not generally understood that the US with its chronic federal and trade deficits is actually on the brink of technical bankruptcy, particularly when long term commitments on Medicaid, Medicare and Pensions, and Social Security payments are factored into the calculations. According to research carried out by Professor Laurence Kotlikoff for the Federal Reserve Bank of St Louis, a leading constituent of the US Federal Reserve, Fed liabilities come to a staggering $70 trillion – this is roughly 5 times the size of the US GDP. However these figures are now out of date. Given the fact that sovereign (or government) debt currently stands at $24 trillion which in terms of DEBT-to-GDP ratio of 107% is bad enough. Then comes private DEBT-to-GDP which stands at 220% minus unfunded future liabilities. (See below).

Figure 1. Sovereign debt to GDP 107%

Figure 2. Private debt to GDP 220%

The TOTAL DEBT i.e. municipal, household, financial, corporate, cars and student fees/debts AND, unfunded future liabilities, social security, Medicare, and pensions, are pushing on to a figure of total debt of 2000% in the not too distant future. This according to a CNBC report by Jeff Cox, September 09, 2019. This whole process has more or less been on track since the demise of the Bretton Woods system in 1971. The date was significant since this was when the US defaulted on its gold IOUs handing its trading partners paper dollars, or near dollars such as US Treasuries (Bonds) which it insisted were as good as gold. As a result the holders of this US government paper have been subsidizing the US and its economy ever since. The ability to palm off its trading partners with green paper meant that the US has been able to buy stuff from the western world without actually paying for any of it. It gets better. The US has been able to buy foreign made goods with monies loaned to them by foreign governments! The ultimate free lunch! See below. Only one way up apparently! Bear in mind also that the figures shown only go up to 2014. It’s odds on that the debt has grown further in the ensuing time span.

Against this backdrop the foreign policy of the US becomes clear. Its purpose is loot pure and simple. The south must continue to be plundered for cheap inputs and raw materials and in order to do this comprador elites must be promoted who are friendly to US interests. Economic development of course cannot take place in this context as there will be an outflow of capital from South to North. Markets must be opened up to the rapacious incursions of US and other western capitals. Possible rivals – Russia, China – must be regarded as long-term enemies and will be divided and marginalised or possibly in 1970s geopolitical jargon ‘Finlandised’. And uppity allies in Europe – like France – must be slapped down and brought to heel.

Whether the Americans can pull this off is a moot point. It rather depends on whether and how the rest of the world will continue to take the green paper from the Fed/US-Treasury (they are now conjoint BTW similar to a pantomime horse).

When other countries and other private lenders borrow, in this instance from the US, they must consider the economic and financial strength and resilience of that economy. Let’s put ourselves into the position of a creditor. As follows.

  • US sovereign debt is greater than national GDP and is only going to get worse. That puts the US economy in what historically has been the danger zone for ruinous trouble of one kind or another: economic stagnation, default, or runaway inflation. As we have seen however it’s the TOTAL DEBT. Which makes the situation dramatically worse.
  • Manufacturing industry has been hollowed out by a strong dollar policy which makes US export costs rise leading to deindustrialisation.
  • The Economy has been left with little capacity for recovering from shocks – both internal and external. Despite the unprecedented money printing and deficit spending evoked by past – 2008 – and presently – 2020 – even greater and further shocks will arise which will only be comparable to the 1930s.
  • Zero or negative interest rates, courtesy of the Fed, which have resulted in a bonanza for corporations to juice up their stock-market capitalisation. Essentially by stealing money off of savers.
  • Investment markets can’t go anywhere without creating bubbles that eventually burst. 1. Dot.com bubble, 2000, 2. Property bubble, 2008, 3. Everything bubble 2020.

This seems to be the story of the 20/21 centuries with each crisis being bigger and deeper as the one before. Does this look like the picture of a healthy super-power? Or is it the picture of a vulnerable giant close to its historical inflexion point? I know where I would put my money.

But given the tsunami of dollar bills flooding the markets an engineered inflation or a Volcker style 20% hike in interest rates seems likely; my own view is that there will be an engineered inflation; in fact, it’s happening already. This means any persons, corporations or states holding US$s or dollar denominated assets, e.g. Treasury Bills is going to take a big hit.

Of course this US offensive, both political and economic, has and will continue to be met with stiff resistance. Most of this has been spontaneous and centered around the crisis in the Middle East, South East Asia, with the growing opposition to the reputedly Promethean gifts of globalisation.

Samir Amin identifies 4 aspects of a political programme which would give organizational coherence to this opposition. ‘’(i) A campaign against all American ‘preventive’ wars and for the closure of all foreign US bases, (ii) A campaign of right to access to the land, which is of crucial importance to the world’s 3 billion peasants, (iii) A campaign for the regulation of industrial outsourcing, and (iv) A cancellation of third world external debts.(v)’’ (3)

One could of course add more to this – capital controls, global minimum wage and labour standards … and so forth. This would only be a beginning, however. Amin himself looks forward to the reconstitution of the UN as a forum where the third world and smaller countries could find legitimate voice, as opposed to the dominant – i.e., US controlled – institutions of the present – the IMF, WTO, WORLD BANK, and NATO which are frankly little more than instruments of US/EU/NATO Triad collective imperialism.

Get ready for a long period of Sturm Und Drang.

(1) Beyond US Hegemony – Samir Amin – 2006

(2) Stephen Walt – 2018

(3) Amin Op.cit. 2006


River to Sea Uprooted Palestinian   
The views expressed in this article are the sole responsibility of the author and do not necessarily reflect those of the Blog!