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Guest Post: Why The West's Financial Warfare Against Russia May Lead To The Real Thing

Tyler Durden's picture


Authored by Harold James, originally posted at European Voice,

The revolution in Ukraine and Russia's illegal annexation of Crimea have generated a serious security crisis in Europe. But, with Western leaders testing a new kind of financial warfare, the situation could become even more dangerous.

A democratic, stable, and prosperous Ukraine would be a constant irritant – and rebuke – to President Vladimir Putin's autocratic and economically sclerotic Russian Federation. In order to prevent such an outcome, Putin is trying to destabilise Ukraine, by seizing Crimea and fomenting ethnic conflict in the eastern part of the country.

At the same time, Putin is attempting to boost Russia's appeal by doubling Crimeans' pensions, boosting the salaries of the region's 200,000 civil servants, and constructing large, Sochi-style infrastructure, including a $3 billion (€2.2bn) bridge across the Kerch Strait. This strategy's long-term sustainability is dubious, owing to the strain that it will put on Russia's public finances. But it will nonetheless serve Putin's goal of projecting Russia's influence.

For their part, the European Union and the United States have no desire for military intervention to defend Ukraine's sovereignty and territorial integrity. But verbal protests alone would make the West look ridiculous and ineffective to the rest of the international community, ultimately giving rise to further – and increasingly far-ranging – security challenges. This leaves Western powers with one option: to launch a financial war against Russia.

As the former US Treasury official Juan Zarate revealed in his recent memoir “Treasury's war”, the US spent the decade after the 11 September 2001 terrorist attacks developing a new set of financial weapons to use against the United States' enemies – first Al Qaeda, then North Korea and Iran, and now Russia. These weapons included asset freezes and blocking rogue banks' access to international finance.

When the Ukrainian revolution began, the Russian banking system was already over-extended and vulnerable. But the situation became much worse with the toppling of Ukrainian President Viktor Yanukovych and the annexation of Crimea, which triggered a stock-market panic that weakened the Russian economy considerably and depleted the assets of Russia's powerful oligarchs.

In a crony capitalist system, threatening the governing elite's wealth rapidly erodes loyalty to the regime. For the corrupt elite, there is a tipping point beyond which the opposition provides better protection for their wealth and power – a point that was reached in Ukraine as the Maidan protests gathered momentum.

Putin's public speeches reveal his conviction that the EU and the US cannot possibly be serious about their financial war, which, in his view, would ultimately hurt their highly complex and interconnected financial markets more than Russia's relatively isolated financial system. After all, the link between financial integration and vulnerability was the main lesson of the crisis that followed the collapse of US investment bank Lehman Brothers in 2008.

In fact, Lehman was a small institution compared to the Austrian, French, and German banks that have become highly exposed to Russia's financial system through the practice of using deposits from Russian companies and individuals to lend to Russian borrowers. Given this, a Russian asset freeze could be catastrophic for European – indeed, global – financial markets.

Putin's plan for destabilising Ukraine is thus two-pronged: capitalise on linguistic or national animosities in Ukraine to foster social fragmentation, while taking advantage of Western – especially European – financial vulnerabilities. Indeed, Putin sometimes likes to frame it as a contest pitting him against the power of financial markets.

The arms race that preceded the First World War was accompanied by exactly the same mixture of military reluctance and eagerness to experiment with the power of markets. In 1911, the leading textbook on the German financial system, by the veteran banker Jacob Riesser, warned: “The enemy, however, may endeavour to aggravate a the sudden collection of outstanding claims, by an unlimited sale of our home securities, and by other attempts to deprive Germany of gold. Attempts may also be made to dislocate our capital, bill, and securities markets, and to menace the basis of our system of credit and payments”.

Politicians began to grasp the potential consequences of financial vulnerability only in 1907, when they faced a financial panic that originated in the US but that had serious consequences for continental Europe (and, in some ways, prefigured the Great Depression). That experience taught every country to make its own financial system more resilient to ward off potential attacks, and that attacks could be a devastating response to diplomatic pressure.

That is exactly what happened in 1911, when a dispute over control of Morocco spurred France to organise the withdrawal of 200 million Deutsche Marks invested in Germany. But Germany was prepared and managed to ward off the attack. Indeed, German bankers proudly noted that the crisis of confidence hit the Paris market much harder than markets in Berlin or Hamburg.

Countries' efforts to protect their financial systems often centred on increased banking supervision and, in many cases, enlarging the central bank's authority to include the provision of emergency liquidity to domestic institutions. Subsequent debates about financial reform in the US reflected this imperative, with some of the US Federal Reserve's founders pointing out the military and financial applications of the term “reserve”.

At that time, financial-reform efforts were driven by the notion that building up financial buffers would make the world safe. But this belief fuelled excessive confidence among those responsible for the reforms, preventing them from anticipating that military measures would soon be needed to protect the economy. Instead of being an alternative to war, the financial arms race made war more likely – as it may well be doing with Russia today.


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Fri, 04/18/2014 - 12:46 | 4673258 HedgeAccordingly
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Krugman to Tom Keene: Nobody wants us to become Cuba:..

Fri, 04/18/2014 - 13:07 | 4673314 icanhasbailout
icanhasbailout's picture

"A democratic, stable, and prosperous Ukraine"


Lost me there. That Ukraine is not on the table. Actual real-world options:

1) Russian-dominated Ukraine

2) Fascist Ukraine


Pick one.

Fri, 04/18/2014 - 13:19 | 4673336 DoChenRollingBearing
DoChenRollingBearing's picture



Either above pick is no good, nor our business.  Economic warfare is stupid as well.  Who are we fighting?


Russia is the Number 4 producer of gold in the world.  The USA is number 3.  Peru is number 6.  For any of you who would be interested and missed this (warning: gold porn):

"Gold News and Pictures from Peru"

Fri, 04/18/2014 - 14:17 | 4673501 tmosley
tmosley's picture

"In order to prevent such an outcome, Putin is trying to destabilise Ukraine,"

This authors opinions just went in the trash.

It is the west that has and continues to destabilize Ukraine, and only an UTTER FOOL would think or claim otherwise.  Seizing Crimea and now other parts of Ukraine is just Putins rightful revenge.  Ukrainians don't want the thugs we installed in office.

Fri, 04/18/2014 - 23:57 | 4674848 Tengri Temujin
Tengri Temujin's picture

WHy dont you ever put up this link Robert when you talk about Peruvian gold eh?

 also in the article is said

In a crony capitalist system, threatening the governing elite's wealth rapidly erodes loyalty to the regime. For the corrupt elite, there is a tipping point beyond which the opposition provides better protection for their wealth and power

i guess that is why we keep our stock market always high with fiat to keep the olies happy


Fri, 04/18/2014 - 15:12 | 4673658 TheMeatTrapper
TheMeatTrapper's picture



Nice blog. Never made it to Peru - but did spend a lot of time in Bolivia. I really miss the chicha and the saltenas! Is chicha popular in your area?

Fri, 04/18/2014 - 13:22 | 4673344 strannick
strannick's picture

The authors stable democratic prosperous Ukraine is a long way from the USAs civil war induced, IMF debt ridden, impoverished Ukraine. This guy needs to lose his Time magazine goggles...

Fri, 04/18/2014 - 22:33 | 4674788 old naughty
old naughty's picture

Don't you get that feeling all these are covers for something about to happen at home?

He confiscated the helicopters...and now bringing home the tanks?

Fri, 04/18/2014 - 13:25 | 4673349 123dobryden
123dobryden's picture

using word fascist in ukraine context is very very pathetic...

btw ask lithuanians, estonians or latvians what is their opinion about russian rulers for the past centuries as its them who has first hand experience...

i understand "enemy of my enemy if my friend" but majority of guys here should do their homework a get some real info about how things are going in russia and why it always been so backwards, sclerotic always hurting little guy way too much then everywhere else



Fri, 04/18/2014 - 13:29 | 4673364 DoChenRollingBearing
DoChenRollingBearing's picture

I can only chip-in the opinion of a few Lithuanian-Amerricans I know: They don't like the Russians either.  I already know that MANY Polish (and, duh, Polish-Americans) have no trust of Russia.

Fri, 04/18/2014 - 13:30 | 4673368 icanhasbailout
icanhasbailout's picture

I'll get to that as soon as I finish asking the remaining Cherokee about their experience with the US government.


With neo-Nazis in the government and controlling the streets, and an unholy alliance of oligarchs running the rest of the show, I'll stick with Fascist since it is spot on.


Fri, 04/18/2014 - 13:44 | 4673410 TheReplacement
TheReplacement's picture

Oh since this group did it to that group then it is okay for yet another group to do it to the Ukrainians.  I getcha.

Fri, 04/18/2014 - 14:08 | 4673479 123dobryden
123dobryden's picture

because in russia there is no unholy alliance of oligarchs and putinjungen is not marching the streets

Fri, 04/18/2014 - 20:26 | 4674495 Anusocracy
Anusocracy's picture

And the shitheads in the West believe their governments are "good" even though they are far more destructive than the others.

The West has been the number one enemy of mankind ever since the fall of the USSR and the true believers are incapable of comprehending that.

Fri, 04/18/2014 - 15:41 | 4673676 NoPantsSpongeBob
NoPantsSpongeBob's picture

"enemy of my enemy is my friend" must be an inspiration behind the Latvian annual Nazi SS parades. Even their ministers insists on attending it as an expression of Latvian patriotism.

Fri, 04/18/2014 - 23:35 | 4674857 Tengri Temujin
Tengri Temujin's picture

enemy of the enemy is my friend hmmmm

I guess the Jews that were beaten to death with steel pipes in the town squares in the baltic republics now understand that the baltics considered them enemy that is why the Nazis were their friends.


The slaughter at Lietukis garage                                            Adv. Joseph A. Melamed

The grotesque savagery so virulently demonstrated by the Lithuanians at this dreadful event, represented a watershed in the campaign of persecution against the Jews not merely because of the bestial hatred the Lithuanians so shamelessly displayed in the course such  an act of ‘valor’ against defenseless people.

What made this act of barbarity so gruesome, was the fact it was committed in broad daylight with hundreds of local residents, including women and children, gathered around to observe the spectacle of Jews being either battered to death with crowbars or tire irons or choked to death by having a hose pipe shoved down their throats and water pumped into their gullets until their entrails burst.

 The rounds of applause that came from the assembled crowd with each successive band of thugs (Juozas Luksa) that had just murdered 68 innocent people, took out his harmonica and together with the assembled crowd sang the Lithuanian national anthem. The prisoners incarcerated in the Kovna ghetto were to compose a parody on that anthem later on during the dark years of imprisonment, a parody that reflected the depth of their hatred and contempt for their Lithuanian enemies.

 The significance of the Lietukis pogrom, in  terms of the depth of hatred evidenced towards Jews is, however, as relevant today as it was at the time. The manner in which the present day Lithuanian government chose to handle the Lietukis issue once it had been firmly placed on the international agenda was as shocking as the events themselves.

I can see why the Baltics also hate the Russians now, its oh so clear.


Sat, 04/19/2014 - 00:19 | 4674923 Savyindallas
Savyindallas's picture

Millions of Jews have suffered pograms and persecution   -primarily as the result of retliation and vindictivness of those who themselves have suffered from the persecution of other more powerful jews  -who themselves never received their just reward for the actions. Doesn't make it right, but that's human nature  -and human history.

Fri, 04/18/2014 - 16:37 | 4673857 Ifigenia
Ifigenia's picture

ask iraquis, afghanis, sirians, euroepans, south americans, africans and americans what is their opinion about US rulers of this century

Fri, 04/18/2014 - 19:56 | 4674421 123dobryden
123dobryden's picture

now you see? me downvoted you upvoted for telling the truth

Fri, 04/18/2014 - 20:43 | 4674550 Anusocracy
Anusocracy's picture

Your mind is wrapped around the US's past and Russia's past.

Past reality, being what it is, is prone to be as riddled with lies as the present reality.

Fri, 04/18/2014 - 13:37 | 4673389 sgt_doom
sgt_doom's picture

This dood James is a complete jackhole, doing the revisionism thing, while we have the real data at hand, douchey (referring to James).

And he mentions Juan Zarate, who wants to blow, or give blowjobs, to all the banksters.

What a complete load of bullcrap!

The only thing he got right is that the Obushma administration and NATO are pushing the world closer to nuke WWIII!

To the author of this pathetic blog:

The truth can be really harsh to you whores of the status quo, huh, douchey!

Fri, 04/18/2014 - 13:42 | 4673402 TheReplacement
TheReplacement's picture

3) All the above since they are effectively the same thing to the serfs in Ukraine.

Fri, 04/18/2014 - 12:47 | 4673259 Soul Glow
Soul Glow's picture

Financial Warfare, bitchez

Afu-Ra - Warfare (feat M.O.P) -

Fri, 04/18/2014 - 12:55 | 4673279 maskone909
maskone909's picture

i whirlwind thru cities

one of my old fav's


maybe one day man governments will be deemed illegal.  like edie murphey said in raw, "what have you done for me lately?"

Fri, 04/18/2014 - 12:48 | 4673260 813kml
813kml's picture

I hope the Tylers got paid to post that trash.

Fri, 04/18/2014 - 13:25 | 4673350 Son of Captain Nemo
Son of Captain Nemo's picture


Fri, 04/18/2014 - 12:47 | 4673261 Colonel Klink
Colonel Klink's picture

When goods (gas) stop crossing borders, troops usually do.  Same as it ever was.  Obama and other leaders of the West, need a distraction from the economic collapse that's headed the world's way.

Fri, 04/18/2014 - 12:55 | 4673274 Mr Giggles
Mr Giggles's picture

On horse back again, oh well, better have many horses with this many people about.

Fri, 04/18/2014 - 13:03 | 4673302 Colonel Klink
Colonel Klink's picture

Iron horses.

Fri, 04/18/2014 - 12:49 | 4673266 1000yrdstare
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IMHO, I believe we will see in the near future a massive false flag, here is why, Fellow ZH'rs and myself follow these events and get both sides of the story (usually) Now for the average American or Westerner just see what they are viewing on a daily basis (assuming they watch the MSM news) See if you can take a few days of watching nothing but what is on the MSM news ( FOX, CNN, MSNBC, CBS etc.) see what they are reporting on the situations with Syria and Ukraine. What I realized by doing this was they are conditioning the public to accept that certain countries are the bad guys (in which they may be) which to me seems as if they are conditioning the public before it happens, then stirring them up in a frenzy to go to war with another country. not sure if it will work, as many people have had there eyes open through the internet and it would take a massive false flag to do this. (nuke\chemical\biological a city?) How would you react if a major U.S. city was attacked in this way and blamed on Iran\Russia\China? I know my thoughts would be false flag, however, I believe the ordinary public would accept any story that was told to them, and we would have a new rallying cry. (remember the Maine! remember the Alamo! rmember the Lusitania! 9/11!)lets hope they let the currency fail and we never find out. In any case however, there will be pain.

Fri, 04/18/2014 - 12:58 | 4673290 NOTaREALmerican
NOTaREALmerican's picture

Politics and religion exist to provide a forum where the smart-n-savvy sociopaths manipulate the dumbasses with high-quality bullshit.  The human brain is designed to create, believe, and repeat bullshit.  It's how societies are organized.   There's no escaping this reality.   It's why nothing can be "changed".    All "change" really turns out to be is improved bullshit from the smart-n-savvy people.  

Just life.

Fri, 04/18/2014 - 14:02 | 4673465 y3maxx
y3maxx's picture

...Uncle Sam and Israel are out of control.

Both the USSA & Israel rely on the US, Petrodollar, as the World Currency Reserve.

Fri, 04/18/2014 - 14:18 | 4673502 Not Too Important
Not Too Important's picture

Not for long, war or not.

Fri, 04/18/2014 - 13:04 | 4673304 El Vaquero
El Vaquero's picture

See, that's the thing.  You could show me irrefutable evidence that Russia is a bad guy, we could have another Lusitania and you could show me irrefutable evidence that it was not a false flag, and I would still have that irrefutable evidence that we have been meddling over there and have made things worse and that we are also the bad guys.  We don't deserve to, say, have a passenger ship sunk with innocent civilians, but the folks in DC do deserve a very hard pee-pee slapping.

Fri, 04/18/2014 - 15:00 | 4673628 RafterManFMJ
RafterManFMJ's picture

NOBODY IS INNOCENT! - Paraphrasing Curtis Emerson "Bombs Away" LeMay.

Fri, 04/18/2014 - 13:05 | 4673307 Winston Churchill
Winston Churchill's picture

I talk to a lot of people.
Even my pool guy yesterday knew exactly what is really going down.
Uncle Scam is out of control, and 'folks' are getting it, notwithstandiing the MSM propaganda.
Outside the DC bubble, peeps are getting pissed.
This is not going to end well

Fri, 04/18/2014 - 13:34 | 4673376 DoChenRollingBearing
DoChenRollingBearing's picture

More people that I talk to are starting to feel the same.  So many lies, so many petty regulations, so many stuffed-shirt bureaucrats, so few real jobs...

Agree: This is not going end well.

Fri, 04/18/2014 - 13:46 | 4673413 El Vaquero
El Vaquero's picture

Exactly.  End well, this will not.  There are too many stresses and too much institutional momentum to change course, and in a much broader sense than just US and Russian foreign policy.  Exactly when and how it will break is undetermined, but that it will break is something that you can bet on.

Sat, 04/19/2014 - 06:50 | 4675135 Tengri Temujin
Tengri Temujin's picture

Right on the Money, and it showed in Nevada when people got fed up with the BLM

Fri, 04/18/2014 - 13:54 | 4673437 Nehweh Gahnin
Nehweh Gahnin's picture

I'm a member of a mountain search & rescue unit.  This year alone, our unit has been flooded with new applicants, with our membership skyrocketing from its previous high of ~60 members to over 100 this month.  These members are heavily stacked with combat veterans (many of them special forces), medics, firefighters and preppers.  I was out on a navigation exercise last weekend, and talking to one of the old-timers, I was bemused and gratified that he, too, is anticipating an imminent collapse.  I teamed up that day with a doctor and a 3-tour (Iraq) Marine Recon veteran.  Same thing.  These folks are out here for a small set of reasons:  public service, education & training, and to sharpen the skillsets that will shortly be in critical demand.

The irony is that we have benefitted from some nice DHS grants, which causes some heartburn for some of the members (and subjects us to "allocation" under the Nat'l Defense Resources Preparedness EO), but the new truck, radios and GPS units are nice.

Fri, 04/18/2014 - 14:18 | 4673505 Winston Churchill
Winston Churchill's picture

I wish I was 20 years younger and in better health.
As is ,I am liability in what is coming.
i hope my brain will be of use, bacause most everything else isn't.
I have had the satisfaction of outliving my doctors and their various prognosises.

Fri, 04/18/2014 - 14:26 | 4673525 Hannibal
Hannibal's picture

WInston Churchil: I hear you, you're not alone, we can still kick ass!

Fri, 04/18/2014 - 14:55 | 4673533 813kml
813kml's picture

Nonsense, your brains will make a great plate of scrapple when supplies run low.

I'm joking, of course.  You are one of the most intelligent posters on ZH, Winston.  Your wisdom will come in handy for whomever is lucky enough to have you in their bunker.


P.S.  Bring along your supply of Cuban dog turds and you will be indispensable.

Fri, 04/18/2014 - 18:04 | 4674090 Things that go bump
Things that go bump's picture

At the first sign of trouble you guys ought to head for the hills with all that equipment and keep you heads down until the dust settles. That way, you'll be in a position to do good when you're most needed.

Fri, 04/18/2014 - 22:10 | 4674720 Nehweh Gahnin
Nehweh Gahnin's picture

A couple of the local PD's have received MRAPs.  I'll be keeping my eye on those, too.

Seriously, your point is well-taken by everyone.  This community of volunteers will not let this just go away, and they will not act against their neighbors' and families' interests.

Winston Churchill, you ain't too old to hold a radio, right?  That is needed too.  I'm no spring chicken myself, but this enriches me and is making me healthier.  See what you can find in your area.  (I don't mean to be presumptuous; just optimistic.)  It's a way of doing.  Of being awed by the people you interact with, because everyone is there because they want to be.  Contributions vary.  Respect doesn't.  Because how do you disrespect someone that just shows up to help?

When this shit goes down, your greatest capital is going to be the people around you.  Some people will be destitute in that capital, and others will not.  I put this above gold and silver, or ammo, but they are complementary.  

Sat, 04/19/2014 - 10:19 | 4675335 mccvilb
mccvilb's picture

Agreed. Winnie, I'm in a similar boat.

I started focusing on potable water last year... how to source it or create it in volume locally, and took a free course at a university in the Netherlands through on various methods of identifying and treating contaminated, polluted or brackish water. What will become exceedingly important down the road is how to do it cheaply and economically, for example, from solar energy using drip distillation or fresnel lenses.

You would be shocked and surprised at how dangerous some municipal water supplies are because they originate straight from wastewater (many African countries can't support their populations; with projected droughts here in the US it's coming to a theater near you) or have yet to be tested for heavy metals or treated for certain types of biological and industrial contamination. Here in Maine I've encountered arsenic and mercury poisoning in well water from nearby shellfish dump leaching, minimal to practically no treatment in some city water districts (not every city neighborhood gets its water from the same source), and salt water encroachment in coastal municipal wells. I'm no biologist or chemist but all I need know is how and where to send samples out for testing and how and where to buy supplies wholesale or direct.

Fri, 04/18/2014 - 13:21 | 4673341 Payne
Payne's picture

What if they have a False Flag and no one cares ???

Fri, 04/18/2014 - 14:23 | 4673517 detached.amusement
detached.amusement's picture

what if they have a false flag and 95% of people believe the story, 5 million swiss cheese holes and all?


oh, wait a minute...

Fri, 04/18/2014 - 13:34 | 4673374 813kml
813kml's picture

The power of propaganda is incredible, if you hear the same thing over and over every day pretty soon it becomes ingrained (this explains religion).  I think most people in the US are just working to scrape by, they don't have time to investigate and still believe whatever US gov blares to them at face value.  IMHO, it won't be difficult to convince the US public to go to war but a false flag would definitely push things over the edge.  

US gov could very much use the distraction from its complete corruption and collapsing economy.  They could even spin it as a jobs initiative.  Puttin' Americans back to work at the industry they know best: WAR.

P.S.  I'd bang Rosie the Riveter.

Fri, 04/18/2014 - 12:51 | 4673267 Smegley Wanxalot
Smegley Wanxalot's picture

1st sentence: "... and Russia's illegal annexation of Crimea"

That's all you need to read to know the author is a retarded pro-brussels tool.

Fri, 04/18/2014 - 12:57 | 4673285 rubiconsolutions
rubiconsolutions's picture

".... and Russia's illegal annexation of Crimea..."

I guess it's only democracy if the hegemonic western governments approve of it. Otherwise, it's terrorism...illegal...illegitimate...

Worst piece of crap article on ZH today.

Fri, 04/18/2014 - 13:14 | 4673332 El Vaquero
El Vaquero's picture

Being exposed to differing viewpoints, even when the evidence is unclear or says that the differing viewpoint at hand is full of shit is a good thing.  And yes, the author does seem to be very pro Brussels, which I find to be a full retard position to hold.

Fri, 04/18/2014 - 13:28 | 4673361 NOTaREALmerican
NOTaREALmerican's picture

From the site: 

European Voice is the most authoritative publication dedicated to EU affairs, providing news and opinion on all issues related to the EU, as well as special reports on a major issue every week.

It's not exactly an authority-skeptical publication.


Fri, 04/18/2014 - 13:32 | 4673371 icanhasbailout
icanhasbailout's picture

Being exposed to a dishonest, propaganda-driven viewpoint is never a good thing.

Fri, 04/18/2014 - 13:39 | 4673396 NOTaREALmerican
NOTaREALmerican's picture

It is a good thing if you want to understand how they think.  

You can't treat this like a bunch of Christian fundamentalists who don't read anything with the word dinosaur in the title.  

Fri, 04/18/2014 - 13:51 | 4673427 El Vaquero
El Vaquero's picture

If the drums of war are beating, wouldn't you want to know that they are beating even if you knew that the reasons for war were bogus?  We cannot just live in a bubble, we have to know what the masses are being bombarded with and gauge their reactions accordingly. 

Fri, 04/18/2014 - 14:32 | 4673554 Tenshin Headache
Tenshin Headache's picture

That's what the mainstream media is for.

Fri, 04/18/2014 - 15:08 | 4673630 socalbeach
socalbeach's picture

Yeah, but I don't want to visit the MSN sites and give them traffic, or pay a cable bill or buy a newspaper to subsidize them.

Fri, 04/18/2014 - 23:51 | 4674883 Savyindallas
Savyindallas's picture

Not even in the interest of balance? I enjoy reading ZHers mock and ridicule propagandists. 

Fri, 04/18/2014 - 14:45 | 4673585 zerozulu
zerozulu's picture

Thanks for saying "today"

Fri, 04/18/2014 - 13:06 | 4673306 NOTaREALmerican
NOTaREALmerican's picture

Re:  and Russia's illegal annexation of Crimea

This, however, is true from the perspective of Europeans.   The Ukraine, to the Europeans, was a separate entity with its own government.   This would be like Mexico annexating Yuma county because an election resulted in a majority of the population (who are "ethnic Mexican") voted to become part of Mexico.  

Fri, 04/18/2014 - 12:50 | 4673268 Mr Giggles
Mr Giggles's picture

No military can now afford its civilian base. Financial only. I like polishing my Helmet.

Fri, 04/18/2014 - 12:50 | 4673269 NOTaREALmerican
NOTaREALmerican's picture

Boy,  you gotta hand it to them smart-n-savvy people, they are always one step ahead of the dumbasses.


(Good article)

Fri, 04/18/2014 - 12:51 | 4673271 Ahmeexnal
Ahmeexnal's picture

Who is this Harold James moron? Opuppet's lapdog?

Fri, 04/18/2014 - 12:54 | 4673273 Mercuryquicksilver
Mercuryquicksilver's picture

Stopped Reading at:

"This leaves Western powers with one option: to launch a financial war against Russia."

Or another option--- Get the Fuck Out of Eastern Europe

Hey Tyler, I'd be embarrased to use my real name too.

Fri, 04/18/2014 - 13:19 | 4673325 teslaberry
teslaberry's picture


over time i have come to accept that terrible posters like yourself are not actual trolls, or deeply incompetent individuals, you are simply incapable of separating the world you WANT to see from the way the world is. 


to speak or read about the way the world IS, in an attempt at describing a situation is a specific effort. 


that specific effort is destroyed or , worse, confused , by the likes of those who think like yourself, unable to separate your own internal emotional reality from the concept of making a specific effort at describing what the world looks like. 

the author, may however be wrong, but obviously not for the reasons you give, as those aren't 'reasons' but your own blowhard emotional spasms written as comments. 


if you and all the other dodos on here want to point out where the authors conception is lacking perhaps you would do well to point out that the "FINANCIAL WARFARE'

began before the annexation of crimea, and indeed precipitated it. the west has been attempting to force trade terms upon Ukraine for a long time without giving it EU acceptance. this 'deal' is nothing but a form of financial extortion, and now, with the american orchestrated coup against yoynukovich complete----the ukrainians are seeing how extortion works. most of them don't even understand it however as they have been pushed by the psycho dynamics of this conflict into being pro EURO or pro Russia.


that , mercury, is perhaps what you wanted to point out to the author's deficient desription. 

his conclusion however, that financial warfare will lead to real warfare is probably wrong, but not because of his faulty description but for other reasons like MAD by nuclear attack. 

somehow the author forgets to cover that subject as if diplomacy and finance and trade can be layered on top of the bottom line of force. without discussing those strategies. that is perhaps the biggest X factor connection there is and possibly a good reason why most political theorists don't want to touch it. 

we all recognize that the 'threat of force' does 99% of the work of armies. but yes, the occaional 1% comes into play. fat tails, black swans, they are not. just infrequent. like financial collapses. 

Fri, 04/18/2014 - 14:55 | 4673594 mccvilb
mccvilb's picture


A player complained to the tournament director when US Chess champion Ed Lasker pulled out a cigar and stuck it in his mouth without lighting it. Lasker was well-known for firing one up whenever he had achieved a winning position, and this player, knowing he would play Lasker, had demanded that no smoking be allowed at his table.

"But he's not smoking it sir!"

"Don't you know the threat is greater than the execution?" thus echoing one of the great precepts of chess strategy.

Fri, 04/18/2014 - 15:04 | 4673644 Volkodav
Volkodav's picture

useless talkings....

Sat, 04/19/2014 - 00:22 | 4674922 Mercuryquicksilver
Mercuryquicksilver's picture

"terrible, troll, incompetent, blowhard, dodo"


Is there room for two on that pedestal? You personally attacked me, yet never disprove, or even attempt to argue my response. The west has an alternative. GTFO.

The rest reads like a pathetic opinion editorial from a struggling political "theorist."  I gave you 4 out of 5 stars for prose, and I'm certian you will do well on the written part of your SAT tests.

Sat, 04/19/2014 - 10:48 | 4675397 mccvilb
mccvilb's picture

I used to believe that mutually assured destruction was an effective deterrent. Of course I also believed that testing of nuclear weapons had been limited to a couple of dozen instances. Don't know if I ran into this here on ZH or elsewhere but it's worth reposting:

Time Lapse Map of Every Nuclear Explosion Post 1945


Fri, 04/18/2014 - 12:55 | 4673277 ebworthen
ebworthen's picture

"The revolution in Ukraine and Russia's illegal annexation of Crimea..."

Pretty bad start to an article; as if the C.I.A. and neo-Nazi putsch weren't trying to de-stabilize Ukraine?

"Reserve" in the military sense used by Central Banks; yes, war on citizens by bailing out bankers and debauching the currency.

Fri, 04/18/2014 - 13:18 | 4673335 Jorgen
Jorgen's picture

Here is a good one:

In a crony capitalist system, threatening the governing elite's wealth rapidly erodes loyalty to the regime.

Fri, 04/18/2014 - 13:36 | 4673383 NOTaREALmerican
NOTaREALmerican's picture

That's absolutely true.    

A crony-capitalist system exists BECAUSE the elite get wealth off the government.      

Fri, 04/18/2014 - 13:40 | 4673399 Jorgen
Jorgen's picture

For a moment, I thought the author was alluding to the West... ;)

Fri, 04/18/2014 - 15:53 | 4673753 Winston Churchill
Winston Churchill's picture

Pot or kettle ?

Fri, 04/18/2014 - 13:44 | 4673280 Two-bits
Two-bits's picture

If nothing else, it will be the puppet-in-chief that gets us there.


Some quotes from Barry during a sit with Major Tom(Garrett):

"They’re not interested in any kind of military confrontation with us, understanding that our conventional forces are significantly superior to the Russians. We don’t need a war," Obama said, according to a transcript of the interview.

I wouldn't rush to tell them that, jackoff, didn't you read about what de-escalation means to the Russians?

"The fact that he's (Putin) willing to endanger his economy-- and lose all credibility around the world the way he has is indicative of the fact that Ukrainians are unsatisfied with a relationship in which you've got another country trying to dictate their foreign policy and their economy.  And they want to move forward," Obama said.

This cocksucker has the audacity to talk about endangering economies and dictating foreign policy?  Fuck you Barry.

"The question now becomes whether or not this can be deescalated and resolved-- in a way that gives Ukrainians a chance to make their own decisions about their own lives," Obama said.

Oh, I see, you are begging for a limited tactical nuke strike on our "superior" hardware,  Is this asshole really sending a message.


Like this one:


Full vomit inducing article here:


Looky here if you want for some backup: Russia's Military Doctrine.


"The nuclear weapons with which the Russian Federation Armed Forces are equipped are seen by the Russian Federation as a factor in deterring aggression, safeguarding the military security of the Russian Federation and its allies, and maintaining international stability and peace.

The Russian Federation reserves the right to use nuclear weapons in response to the use of nuclear and other types of weapons of mass destruction against it and (or) its allies, as well as in response to large-scale aggression utilizing conventional weapons in situations critical to the national security of the Russian Federation."


Keep fucking around NATO.  Keep drawing lines and blabbering about costs Barry.  

Fri, 04/18/2014 - 12:56 | 4673281 TruthTalker
TruthTalker's picture

Total propaganda bullshit.  As previous poster stated first sentence tells you how off base this author is.

Fri, 04/18/2014 - 12:56 | 4673282 Tinky
Tinky's picture

Anyone who would prefer to read an accurate account of what is happening re: Ukraine should try this Stephen Cohen interview:

Fri, 04/18/2014 - 14:15 | 4673498 caustixoid
caustixoid's picture

Thanks. Refreshing that any academics in the U.S. have not yet been replaced by pod people.

Fri, 04/18/2014 - 15:00 | 4673629 Volkodav
Volkodav's picture

Yes...good post!

Fri, 04/18/2014 - 12:56 | 4673283 JustObserving
JustObserving's picture
Russia's illegal annexation of Crimea have generated a serious security crisis in Europe

Here is another point of view:

Crimea: whose land is this?

by Sergei Khrushchev

Sergei Khrushchev, the son of Nikita Khrushchev, who is in charge of research in a U.S university, argues that Crimea was never a part of Ukraine except for bureaucratic reasons. The land has actually been Russian for centuries and Washington is wrong to make it a major bone of contention with Moscow.

On March 16, the Crimean referendum took place without any fighting or clashes, which Kiev and Washington were hoping to use to discredit the process.

As a result, the referendum was conducted without major problems; 83 percent of the population cast their vote and 96.7 percent of them - Russians, Ukrainians and even some Tatars - voted for secession from Ukraine and annexation to Russia. The vote was observed by 135 representatives of 23 countries and 240 observers represented the Crimean civic society and political parties.

They unanimously confirmed that there were no significant violations and that everyone could vote freely, without any pressure.

All night, people on the squares of the Crimean capital Simferopol and others were celebrating, laughing, hugging, dancing, and firing fireworks. In Kiev, all were sulking.

In Washington DC, the best minds of the Obama administration were feverishly thinking how else to make it more difficult for the recalcitrant citizens of Crimea. They will definitely think of something since they have a lot of experience in doing so. After all, Iraqis, Iranians, Syrians, Libyans and the Lebanese have long stopped celebrating.

Fri, 04/18/2014 - 13:40 | 4673400 DoChenRollingBearing
DoChenRollingBearing's picture



+ 1

My reading and study is that you are right: Crimea really is part of Russia, more so than a part of Ukraine.  

Yet, Russia has always been a tyrannical place (human rights, please...), and I do not believe that many pro-Russia folks here at ZH know that...

Fri, 04/18/2014 - 13:45 | 4673411 beau jeste
beau jeste's picture

.... and the US is different in what way?

Fri, 04/18/2014 - 15:00 | 4673626 Volkodav
Volkodav's picture

is less free in many ways....and losing more

Fri, 04/18/2014 - 14:56 | 4673618 Volkodav
Volkodav's picture

I don't think you know that...

whether you ignorant and/or assume to much.."always" is not apply

Russians are better off than ever...and gaining..

Russia is more free in many ways

Fri, 04/18/2014 - 14:53 | 4673606 Volkodav
Volkodav's picture

Good article!..good post

Fri, 04/18/2014 - 13:01 | 4673298 1000yrdstare
1000yrdstare's picture

After all, Iraqis, Iranians, Syrians, Libyans and the Lebanese have long stopped celebrating.


No one leaves the club without being punished....

Fri, 04/18/2014 - 13:03 | 4673301 Carl Popper
Carl Popper's picture

Yes it does matter. Feinstein is already angry at the CIA. Please send this or something similar to your congressperson so they can ask the right questions.




Dear Congressperson


Greystone and other entities are a way for the president and CIA to get around congressional oversight and legal restrictions of the executive branch established after the Frank Church commission.


The president cannot send CIA and military employees to Ukraine without Congressional oversight


A "private" company can, and Ukraine can "pay" for it with our loan guarantees and other aid we send Ukraine.


This circumvents legal restrictions and congressional oversight.


Greystone and others are the new Air America.


We have government Ukraine......without congressional oversight, and this violates several laws established after the Frank Church commission hearings.


Even if the rumors of their capture is untrue, this is still potentially a huge scandal if some were to be captured.   Not only that, it is patently illegal.    Not only that, it is morally and ethically wrong.


That is also another reason that the BLM pulled out.   If there had been a shootout and Joe Blow died in a BLM uniform, then  his friends and family would say publicly "Joe Blow?   He didnt work for the BLM.   He worked for Blackwater and Greystone.   He was contract military."


Do you see the huge scandal?


For congressional oversight you have to ask the CIA and NSA and the president to respond to this.   Please.


The BLM essentially acknowledged contract mercenaries when questioned.  Look up MSM reports.   Also our government has even acknowledged Greystone is in Ukraine.   Look it up.


Fri, 04/18/2014 - 18:15 | 4674121 Things that go bump
Things that go bump's picture

Russia doesn't really have to fight. All they have to do is retreat before advancing forces, burning whatever they can't carry with them. Maybe this time, Greystone gets to walk home in winter from St. Petersburg. Couldn't happen to a nicer bunch.

Fri, 04/18/2014 - 13:06 | 4673308 Goldenballz
Goldenballz's picture

Russia is the country with the smallest ratio of Debt/GDP, as opposed to NATO US and UK... isnt that a good thing?? meaning that they are not in debt? also they dont have a net export deficit. I dont think Russia is doing bad financially... specially with the new deals with China...


Fri, 04/18/2014 - 13:12 | 4673324 NOTaREALmerican
NOTaREALmerican's picture

There's more to a country than its debt/GDP ratio.    Most countries have a small group of people who own most of it.    These people like traveling the world, hangin' with other top .001% homies, making deals with other sociopaths to maximize their looting potential, and having access to finest food wine and escorts the world offers.

The Russian top .001% is no different.   They don't like having their access limited.  

Fri, 04/18/2014 - 13:13 | 4673327 JustObserving
JustObserving's picture

Here are the facts:

In 2000, and with the arrival of a new president, the new Russian government tried to change course by loosening the US grip on the economy and wealth of Russia, but also on the society and the country’s politics - a very delicate and difficult project because of the many difficulties that arose.

Compared to the situation in 2000, the progress made by Russia until 2010 is remarkable: the social product has doubled, foreign trade has quadrupled, debts abroad are reduced to one-sixth of their initial value, wages have increased 2.5 times after inflation, annuities tripled, the poverty rate has fallen by more than half, unemployment has gone from 10% to 7%, the number of births increased by 40 %, deaths have decreased by 10%, infant deaths fell by 30%, life expentancy increased by 5 years, the crime rate has decreased by 10%, murders fell by 50% and suicides by 40%, alcohol poisoning fell by more than 60%.

The "West" was not eager to help. On the contrary, the means used to attempt to break Russia became less obvious but even more treacherous. And whoever dared to openly challenge these attempts by promoting countermeasures, as in the case of the Russian government for many years, was very unpopular in the West.

Mainstream Western media have played and still play an increasingly doubtful role in this campaign against Russia.

Fri, 04/18/2014 - 13:20 | 4673339 NOTaREALmerican
NOTaREALmerican's picture

Re:  Here are the facts:

The above is true (altho, you've got to admit they had nowhere to go but up coming from a "base" of the Soviet society).   However,  that doesn't mean Putin is "the good guy" here.    The sociopaths who run Russia would, if they could, be doing to "the West" exactly what "the West" is doing to (pick one or more) [ China | Japan | Russia | South America | Africa ].    This is just game of sociopaths fighting it out for the world's biggest dick.  Nothing more or less; and no other situation is possible.  

Why do you think the sociopaths in Brussels created the EU?  Because they looked at the sizes of the dicks in the US and China, and realized if they didn't want to get fucked they had to get screwing.  

There's NO good guys here.   Just dicks and assholes.

Fri, 04/18/2014 - 14:47 | 4673590 DoChenRollingBearing
DoChenRollingBearing's picture

Yes.  Every top dog of a large organization I have ever mey was sociopathic.

Fri, 04/18/2014 - 14:51 | 4673602 Volkodav
Volkodav's picture

Russia has 13% Flat Tax only...

that alone amounts to a lot of freedom compared....

Fri, 04/18/2014 - 13:15 | 4673321 Patriot Eke
Patriot Eke's picture

This must be a late April Fool's joke?  Putin is destabilizing the Ukraine?!  Riiiiiight....  Edit: Oh, wait.  I missed the "originally posted at European Voice" line.  It all makes perfect sense now.  /smirk

Fri, 04/18/2014 - 13:41 | 4673360 Two-bits
Two-bits's picture

Yep, just above you.




It was as if he was programed to use the buzzwords from this article:


Edit: and from the first link within the article:

"The Russian Federation reserves the right to use nuclear weapons in response to the use of nuclear and other types of weapons of mass destruction against it and (or) its allies, as well as in response to large-scale aggression utilizing conventional weapons in situations critical to the national security of the Russian Federation."

Fri, 04/18/2014 - 15:29 | 4673699 TheMeatTrapper
TheMeatTrapper's picture

Our military was far superior to Vietnams military as well. The BLM at Bunkerville had nicer toys than the militia did as well. Toys don't always equal victory.

Fri, 04/18/2014 - 13:19 | 4673337 alustoon
alustoon's picture

Unbelievable how many bullshit is around the net. And usually good references in the net just pick up that crap and re-post it.

Fri, 04/18/2014 - 13:20 | 4673340 Omen IV
Omen IV's picture


read it and weep:

RUSSIA has 6.6 millon sq miles with $100++ trillion value conservative in "probable" reserves of: oil, gas, iron, copper, diamonds et etc etc  > "ONLY" 146 million people - WITH EDUCATION AND SERIOUS creative IQ

Russian government debt less than 2.5% of GDP - less than $45 "Billion" (thats a B) total versus USA at $17 TRILLION (thats a T)  accumulated in war games for 70 years and 102.0% of GDP > russia also has low "private" debt for corporations and individuals as well - along with one of the largest reserves of foreign currency in the world 

with a new currency in place with China - the petro dollar is finished as reserve currency as widely reported

what is the purpose of the elimentary propaganda?


Fri, 04/18/2014 - 13:27 | 4673353 paddyirishman
paddyirishman's picture

We in Ireland as part  of the eussr...I mean eu are A democratic, stable, and prosperous country, only joking, Vlad can we join you, pleasssssssse

Fri, 04/18/2014 - 18:36 | 4674199 Ifigenia
Ifigenia's picture

Do you need another election ad infinitum to obtain "no" to Vlad?

Fri, 04/18/2014 - 13:26 | 4673354 paddyirishman
paddyirishman's picture

We in Ireland as part  of the eussr...I mean eu are A democratic, stable, and prosperous country, only joking, Vlad can we join you, pleasssssssse

Fri, 04/18/2014 - 14:47 | 4673591 Volkodav
Volkodav's picture

Da...I upvoted you twice...

Fri, 04/18/2014 - 13:31 | 4673367 Gadfly
Gadfly's picture

Hey Tyler.  WTF?  Are you going mainstream or what?  This is pure horseshit and you know it.  Are you trying to piss us off or make us go somewhere else?  We come here to avoid reading crap from journalistic whores like this who are on the payroll of the NeoClan.  Please, you've been doing this entirely too much lately.  Has ZH been bought?

Fri, 04/18/2014 - 13:38 | 4673378 HardlyZero
HardlyZero's picture

Bla bla bla.  This article represents the statist position and probably 90% of the articles.

Next Winter in Germany and EU should be pivotal in the economic war.   If no one pays, no more free rides, and the gas and oil stops flowing from East to West, then the economies will further crumble; they will have their scapegoats.

Fri, 04/18/2014 - 13:45 | 4673393 tsuki
tsuki's picture

One quarter of the way through the article, I had to go to the shed and get a shovel to plow through  the rest. 


ARD has an investigative report on the Maidan shooting.  Here is the link:

Fri, 04/18/2014 - 13:41 | 4673401 sondernauch
sondernauch's picture

Is there gonna be a bigger war on us if we keep resisting the "elite"'s propaganda like this? 

Fri, 04/18/2014 - 13:43 | 4673407 NickVegas
NickVegas's picture

Binary choices always, big MIC agit-prop. Without war, the Rothschilds might have to get a job.

Fri, 04/18/2014 - 13:53 | 4673424 TrustWho
TrustWho's picture

A lack of historic understanding by our politicians and citizens is shameful.

Japan was forced to attack USA because USA was Saudi Arabia of oil and USA used this oil power to punish Japan. In fact, the essence of war is financial war with young men spilling blood and guts for the motherland. The powerless should be cheering the Ukaranian army. Why should the powerless fight for the powerful? At least Genghis Khan shared the fruits of vistory with his troops. USA send troops to battle and on their return calls them domestic terrorists. This abuse will not last long.

Fri, 04/18/2014 - 13:52 | 4673429 luckylongshot
luckylongshot's picture

Harold James seems to be parrotting western propaganda rather than writing anything that remotely resembles independant journalism. He starts his article with a glaring example of one eyed hypocrisy in writing"The revolution in Ukraine and Russia's illegal annexation of Crimea." To be taken seriously he really needed to acknowledge that the coup that toppled the Ukrainian government was as illegal as the annexation of Crimea that followed. That he failed to do this discredits him as a journalist and means there is a good reason not to put his work on ZH in future.

Fri, 04/18/2014 - 14:01 | 4673459 TrustWho
TrustWho's picture

You are correct. I would add Putin felt deceived by the west when they signed the agreement that kept Yanukovych in power with elections in May. Based on this agreement, Putin loaned Ukraine $15 billion with immediate $2 billion payment.

Putin is pissed with the forked tongue approach of the west. He will protect the Russians from the American Indians fate. Note, I understand Putin is a Nationalist and lives as an oligarch and will kill agys if they get into his face like they do in America.

Fri, 04/18/2014 - 13:56 | 4673449 MoneyThimbles
MoneyThimbles's picture

"In order to prevent such an outcome, "

That must be the stupidest thing I've read all week. As icanhasbailout says, such an outcome was never on the table; but even if it had been, that is not what this was all about. I'm afraid you are a western progressivist revisionist and you've been spotted.

Fri, 04/18/2014 - 14:00 | 4673451 Jack Burton
Jack Burton's picture

The author is as ignorant of reality as it is possible to be. Thus we have two possibilities here. The man truely is an ignorant product of a collapse in modern education standards. Or, he is a liar and a propaganda dupe of the highest order. His piece above is so stupid that it beggars any answering rebutals.

My guess is he is both ignorant and a propanganda dupe of the Banker New World Order, who are intent on the slavery of all mankind, and they will not take no for an answer. If they do not get their way, they will kill to get it. What raises them to irrational anger is the fact that Russia can defend itself, and this is something they are not used to. Iraq is a model for their murderous ways, sadly for them, Russia is not Iraq.

So, Mr. Author, you are simply pissing into the wind, and after reading your piece, you have pissed in the wrong direction and your pants are piss soaked, just like you useless brain.

Fuck off, and send somebody better then you to try and lie to us all.

Fri, 04/18/2014 - 16:55 | 4673650 Radical Marijuana
Radical Marijuana's picture

Yes, Jack Burton, your statement summarizes my view too:

"Banker New World Order, who are intent on the slavery of all mankind, and they will not take no for an answer. If they do not get their way, they will kill to get it. What raises them to irrational anger is the fact that Russia can defend itself."

The bankster ruling classes, that dominate NATO countries' politics and mass media, are following through on a criminally insane agenda for the whole world to accept their consolidated hegemony of enforced frauds. While, obviously, Russia, China, and India, etc.,  were long ago also forced into the globalization of the Neolithic Civilization social pyramid systems of private banks creating "money" out of nothing, which was made "valuable" by the power of governments backing that up, some countries still have some degree of national control over their central banks.

The real war trends are for the people in NATO countries, who are already almost totally controlled by the international banksters, to waste their blood and treasure to advance the agenda of the banksters. Of course, obviously, Russia, and every other country, is some system of organized lies, operating robberies. (In that context, it is NOT necessarily to be on the side of Russia when one is against the international banksters.)

I agreed with the vast majority of the previous comments and votes that this article above appears to have been "both ignorant and a propaganda dupe." However, the problem is that, when one looks at the mass media, it is almost ALL THAT! The banksters have already worked their way through the majority of the short list of countries that did not have a bankster approved central bank, and overwhelming debts to those banksters. They have already been able to get NATO to bomb countries like Libya, in order to achieve their real objectives. However, the bankster controlled NATO monster is now pushing against countries which have the ability to destroy most of civilization, if the military situations snapped, and spiralled out of control.

The questions are about whether or not the current dominant global crime gang, the banksters, are going to be able to wipe out all opposition to their hegemony, or end up triggering the destruction of civilization while attempting to do that. Tragically, I feel that it will only be question of time until the criminally insane agenda of the international banksters destroys the planet. If they lose, the habitability of the planet will probably get destroyed fast, if they win, the habitability of the planet will still get destroyed, only slower, BECAUSE THEIR BASIC SYSTEM IS ENFORCED FRAUDS CONTROLLING CIVILIZATION.

Every time that the mass media promote the propaganda leading to provoking war, they are actually preparing the way for their own self-destruction. In general, the banksters are now the parasites that are killing their host. All of the military power of the USA, and other NATO countries, is primarily the muscle to back up the American Dollar, and the currencies of other NATO countries. Therefore, the primarily purpose of that military power is to enforce frauds.

The international banksters have built a globalized system of electronic frauds, backed by the threat of atomic bombs. Their goal is to continue to consolidate that as system which has no exceptions. Almost all the countries in the world have already been forced to become integrated into that global empire. Russia, or China, etc., are NOT fundamentally different. However, they still do provide some real resistance.

I believe that the banksters' drive towards consolidating the complete triumph of enforced frauds, manifested through electronic fiat money, backed by the force of weapons of mass destruction, will eventually fail in catastrophic ways. However, enough of the people in NATO countries have already been brainwashed to believe in bullshit like this article above stated, and there are no practical ways to change that political situation. All of the people in NATO countries are collectively preparing to commit suicide, because they are controlled by the international banksters, in ways where there is no doubt that the longer term outcome will be that those parasites will kill their host.

The outstanding questions are when and how will the criminally insane agenda of the international banksters finally push things out of control. Most mainstream morons think that will never happen. However, my feeling is that it is inevitable that will happen. We are basically watching the world prepare to commit suicide, which path is constantly causing all other conditions to deteriorate in ways that makes committing suicide like that more probable.

I see nothing that can be practically done in the real political context to prevent people from destroying their ability to continue living on the planet. It is impossible to exaggerate the degree to which the ruling classes are criminally insane, and that all of their political puppets, and the masses of muppets, throughout NATO countries, are similarly criminally insane. MAINSTREAM MEDIA ARE PREPARING FOR THE WORLD TO COMMIT CRAZY COLLECTIVE SUICIDE, BECAUSE EVERYTHING IS CONTROLLED BY LIES, BACKED BY VIOLENCE, WHICH CAN NOT RESPOND IN ANY OTHER WAYS THAN TO DO THAT MORE AND MORE ... UNTIL ???

Fri, 04/18/2014 - 15:10 | 4673656 Toolshed
Toolshed's picture

Definitely the latter.

Fri, 04/18/2014 - 14:06 | 4673470 basho
basho's picture

what you see in this article is the extreme russophobia that is present in europe. Der Spiegel censors all postings to its website. Die Zeit does not even provide an open forum. The BBC does not have an open forum. German and Swiss tv is loaded with anti-russian analysis. disgusting. what is funny is watching the talking heads scramble to get the news to fit their propaganda agenda.

Fri, 04/18/2014 - 16:46 | 4673888 Ifigenia
Ifigenia's picture

This only mean that the empire control Europe. As an european, i only think of when Europe would get free from the control. And this lead to my desire to see its crumble. Just like URRS, when it went down Eastern europeans get free. Now is the chance of western europe.

Fri, 04/18/2014 - 14:23 | 4673513 Hannibal
Hannibal's picture

The author of this article is clueless with no mention of the fact that Russia is surrounded by numerous mega US/Nato military bases with their so called "defensive " missiles pointed at Moskow. Putin's actions are obligatory, a counter punch to defend mother Russia from foreign aggressions. Furthermore the Crimean people, by means of a referendum, overwhelmingly voted to rejoin the Russian Federation. People power is a bitch, aint it....?



Fri, 04/18/2014 - 15:09 | 4673653 Toolshed
Toolshed's picture

This ass wipe of an author is the epitomy of bottom dwelling pond scum. He is not clueless. He is a propogandist shill doing the bidding of his masters. He should be publicly executed for being a traitorous pig.

Fri, 04/18/2014 - 14:33 | 4673558 mccvilb
mccvilb's picture

Harold James is a history professor at Princeton and the author of dozens of books on the history of Germany, banking and economics and lest we forget, the persecution of the Jews in Nazi Germany.

Here he is at Bretton Woods demonstrating his ability to put everyone in the audience to sleep.

Like all good historians, he tends to rewrite events and leave out those parts that don't always fit with his analysis or hypotheses. He's one of these intellectuals who sees it is his job on earth to tell us what we couldn't possibly understand on our own; now it is our job to go forth and foil another well-designed Russian plot.

Anyway, it's just a board game. It wouldn't dare impact him or his insular denkengruppe personally.


Fri, 04/18/2014 - 14:34 | 4673563 Sandmann
Sandmann's picture

I have always had great respect for Harold James on German economic history but not for this drivel he has published here. It is fatuous and frankly cretinous. The US has abused its role in the global financial system by persecuting Wikileaks and anyone that opposes its hegemony just as Us presidents use the IRS to harass opponents domestically.

These sanctions against Russia make the absence of sanctions against Israel even more salient. Sanctions against Saudi Arabia for its role in funding Terrorism are also absent. Sanctions against China for Tienanmen Square were also absent.

The simple fact is the US Oligarchy seeks Global Domination and invites oligarchs in Europe and Asia to sign up to its Imperial Court and pay homage. West European Satrapies betray their own Voters to serve US interests and the Money Moloch, but only the Money Class and Political Puppets can join the oligarchs running US policy.

This is the New World Order

Fri, 04/18/2014 - 14:42 | 4673576 Tenshin Headache
Tenshin Headache's picture

1. Russia gets cut out of SWIFT

2. Russia turns off gas

Fri, 04/18/2014 - 14:44 | 4673582 Volkodav
Volkodav's picture

I readed as far as two sentences...this article is crap!

Fri, 04/18/2014 - 15:51 | 4673748 Canucklehead
Canucklehead's picture

Harold James is a clown looking for a pedestal, trying to get the crowd to look at him. He has no understanding of the issues at play.

Fri, 04/18/2014 - 15:24 | 4673583 Youri Carma
Youri Carma's picture

Ai,ai, ai!!!  Epic fail in the first sentence, Harold James: "The revolution in Ukraine and Russia's illegal annexation of Crimea  ..."

Again, for anyone just returning from another planet (2000 light years from home , Crimea with a turn out of 83.1%, voted, in a referendum, by nearly ninety seven percent, to rejoin Russia.

Incidentally, a google of “referendum” elicits that: “A  referendum … is a direct  vote in which the entire electorate is asked to either accept or reject a particular proposal. This may result in the adoption of a new constitution, a constitutional amendment or a law … the referendum is one of the three pillars of direct democracy.” (Emphasis mine.)

FROM: Ukraine and Crimea, An Illegal Putsch and a Democratic Referendum by Felicity Arbuthnot

Xtra little nugget ;)  "2000 Light Years From Home"(take 1 - working title "Title 12") - 1967

I completely agree with this part of the piece to not be total destructive: "

Putin's public speeches reveal his conviction that the EU and the US cannot possibly be serious about their financial war, which, in his view, would ultimately hurt their highly complex and interconnected financial markets more than Russia's relatively isolated financial system. After all, the link between financial integration and vulnerability was the main lesson of the crisis that followed the collapse of US investment bank Lehman Brothers in 2008.

In fact, Lehman was a small institution compared to the Austrian, French, and German banks that have become highly exposed to Russia's financial system through the practice of using deposits from Russian companies and individuals to lend to Russian borrowers. Given this, a Russian asset freeze could be catastrophic for European – indeed, global – financial markets.

Fri, 04/18/2014 - 15:19 | 4673677 Youri Carma
Youri Carma's picture

Indeed that is 'the real deal', good find! Have been doing some homework myself lately.

Jim Rogers: "America Is Shooting Itself In The Foot" Over Russia

- Sanctions effect: Russia to change its economic partners…for the better
- Putin looks to Asia as West threatens to isolate Russia
- Gazprom Stops Courting U.S. Investors After Crimea Crisis
- Putin Flushes the US Dollar: Russia’s Gold Ruble Payments System Delinked from Dollar

- Petrodollar Alert: Putin Prepares To Announce "Holy Grail" Gas Deal With China
- Russia Prepares Mega-Deal With India After Locking Up China With "Holy Grail" Gas Deal
- It’s On: Gazprom Prepares “Symbolic” Bond Issue In Chinese Yuan
- W(h)ither Petrodollar: Russia, Iran Announce $20 Billion Oil-For-Goods Deal

- Russian oil firm says Asian buyers willing to use euros
- Russian Holdings of Treasuries Fall to Lowest Since 2011
- Bank of America Cuts Russia Bond Rating on Ukraine
- Ukraine Debt Rating Cut by Moody’s Amid Russia Dispute

- Caterpillar Urges Multilateral Action Over Ukraine Crisis
- Pentagon Asks Air Force About Russia Rocket Engine
- GE-Boeing Among Firms Tracking Russia Sanctions Fallout
- Bombardier Sees $3.4 Billion Russia Plane Orders Stalled
- Guess Which Precious Metal Is Controlled By The Russians?
- Palladium Reaches Highest Since 2011 on Russia Sanctions

- RWE to Sell $7.1 Billion Dea Division to Fridman’s LetterOne
- German Exporters Fire Warning Shot About Russia “Sanction-Spiral,” Banks At Risk
- Hamburger Hafen Says Russia Sanctions May Hurt Earnings
- BMW CEO Calls for Diplomatic Solution to Crimea Dispute
- UK to start directly buying Russian gas
- Rosneft to Buy Pirelli Stake in Tiremaker Owners’ Revamp
- Rosneft Chief Says Sanctions Won’t Delay Morgan Stanley Deal
- Londongrad Dealmakers Threatened by Sanctions
- Mapping Europe's Mutually Assured Economic Destruction As EU Plans More Sanctions

HEADLINES FROM: Russia-Ukraine Crisis Threatens Europe & US Economy

Dutch Proverb: 'Zoals de waard is vertrouwt hij zijn gasten' - 'The host trusts his quests as much as he trusts himself'

Lenovo-IBM Deal Probed by U.S. Over Servers at Pentagon

Fri, 04/18/2014 - 15:02 | 4673639 tony bonn
tony bonn's picture

"...The revolution in Ukraine and Russia's illegal annexation of Crimea ..."

i see that victoria "fuck the eu" nuland and the john "i'm directing the colonization of ukraine" brennan have sent their lackey harold james to spread lies and a warning that war is imminent because the almighty fiat wil be preserved at all costs....nuland, brennan are murderers, and james an accomplice.

Fri, 04/18/2014 - 15:20 | 4673678 Son of Captain Nemo
Son of Captain Nemo's picture

And the "Ayes" have it... Towards a change that is!!!

Fri, 04/18/2014 - 15:21 | 4673679 smacker
smacker's picture

Harold James, originally posted at European Voice:

"The revolution in Ukraine and Russia's illegal annexation of Crimea have generated a serious security crisis in Europe" AND

"In order to prevent [Ukraine becoming an economic irritant to Putin's Russia], Putin is trying to destabilise Ukraine, by seizing Crimea and fomenting ethnic conflict in the eastern part of the country"

This is utter rubbish. Where's the evidence??

I always welcome ZH giving space to differing opinions about all sorts of matters. But this is not an opinion, it is a blatant lie. Harold James is obviously an EU propaganda mouthpiece.

Fri, 04/18/2014 - 15:49 | 4673739 Canucklehead
Canucklehead's picture

Harold James wants to break into the big leagues. He thinks this is his shot to become a CNBC writer.

Fri, 04/18/2014 - 17:34 | 4674015 Ifigenia
Ifigenia's picture

"Harold James is obviously an EU propaganda mouthpiece", no he must be pay by CIA. Europe dont want to break ties with Russia, USA does.

Fri, 04/18/2014 - 19:58 | 4674430 smacker
smacker's picture

Good point. And given that someone commented earlier that he lives and works in the US, that makes sense.

Sat, 04/19/2014 - 01:26 | 4674993 Atticus Finch
Atticus Finch's picture

Yeah, and besides, I didn't know that the Three Stooges had a fourth member.

Fri, 04/18/2014 - 15:25 | 4673689 Volkodav
Volkodav's picture


Fri, 04/18/2014 - 15:28 | 4673697 georgepazol
georgepazol's picture

Whatever makes germany worried scared and angry suits me. I love it. Can Russia take all of Europe? Who will fight them? Europe has NO army.

Fri, 04/18/2014 - 17:32 | 4674011 Ifigenia
Ifigenia's picture

Europeans just want yankee go home.

Fri, 04/18/2014 - 22:20 | 4674756 Ifigenia
Ifigenia's picture

"Europe has NO army."

Stop this propaganda shit. EU has the second largest War Budget in the World. 

Fri, 04/18/2014 - 15:52 | 4673752 rsnoble
rsnoble's picture

Who's the fucking clown that wrote this crap? Was it not illegal to stir up shit and install puppets from the EU?  No it wasn't......not in the minds of the EU and US of Assholes.

Fri, 04/18/2014 - 16:04 | 4673781 Joe A
Joe A's picture

"and depleted the assets of Russia's powerful oligarchs."

Sounds like these sanctions are actually doing Putin a favor. A Russian powerful oligarch with depleted assets might just not be so powerful anymore.

Fri, 04/18/2014 - 22:40 | 4674797 Savyindallas
Savyindallas's picture

good  -Russia needs to be rid of their remaining Oligarchs. They are allies of and controlled by the International banksters anyway.

Fri, 04/18/2014 - 16:41 | 4673874 Ifigenia
Ifigenia's picture

European Voice? it sound like a CIA finance propaganda machine to manipulate americans to think that the europeans support the empire. If it is really a support of Europe for US empire, than why the NSA spionage on every european leaders?

Fri, 04/18/2014 - 22:36 | 4674793 Savyindallas
Savyindallas's picture

Empires (especially weak ones like the US which skipped the 400 years of strength Rome had and now are more akin to Rome in the last 50 years) rarely have the true support of their subjects (or slaves) Did the USSR pre-1989 have the support of the people of East germany, Poland, Romania or Czechoslovakia? I think our 'support" among the population s of europe and other 'allies" is paper thin.

Fri, 04/18/2014 - 17:05 | 4673948 Herdee
Herdee's picture

The talk seems to be centered on Putin along with Russia's economics.It fails to mention 17.5 trillion of national debt in the U.S. and what will happen to that debt if interest rates rise and countries around the world stop buying U.S. government debt.Support for right wing neo-nazi groups by the EU and the Obama regime are going to continue to haunt them.That Nuland broad really PMS'd the whole deal for Obama.And we still come back to that nagging old question.Where's the U.S. and EU money for Ukraine?Russia wants to get paid for their nat gas bills and they don't want yankee dollars any more.Now you know why the U.S. has got the 40 metric tonnes of Ukrainian gold.We need to pay off Russia!

Fri, 04/18/2014 - 17:22 | 4673989 Ifigenia
Ifigenia's picture



Friday, April 18, 2014
The thing which everybody seems to be missing Okay, I decided to squeeze in one more post before taking time off for Holy Paskha, this is well worth it.

Some of you have asked about China's role in all this, in what the real interests of the USA are, how the EU is positioning itself and what Russia does or does not want.  And, somehow, bogged down by the minutiae of the unfolding events I managed to never mention something which Putin, Lavrov and many other top Russian politicians have repeatedly said:

What is happening today before our eyes is the end of one international system and the birth of a qualitatively different one.

Interestingly, Putin has declared that for him the point of no return was reached when the USA and its allies at the UNSC and NATO clearly and grossly twisted the intention of the UNSC on Libya and "upgraded" what should have been a "no fly" zone to a free-fire zone to attack and bomb Libya [of course, it was pretty darn clear to Putin that the "all necessary means to protect civilians" of the resolution was an open ended invitation for the AngloZionists to "interpret" it in any way they wanted; now his says that Russia was "lied to" in order to not blame Medvedev for walking into a 10 foot wide hole.  But that is irrelevant here].  Putin says that from then on he had acquired the conviction that the West could not be negotiated with and had to be simply stopped.  Then Syria happened: for the first time since the end of WWII the USA had decided to do something and was stopped by an outside power in the most humiliating way possible.

The Russian stance on Syria was an overt challenge to US world hegemony.  It was clearly understood as such in Washington and now, following the crisis in the Ukraine, the Russians have openly admitted this.

So this is the real stake of the civil war in the Ukraine: for the USA it is to punish Russia for daring to challenge the world hegemon; for Russia it is to unseat this hegemon and replace him by a multi-polar international system in which sovereign countries act within the bounds of international law.  You could say that even though most of the Security Council is vehemently opposed to that, Russia is trying to show to the world that the USA does not own the UN and that it only represents 1/5th of the P5 and 1/15th of the UNSC.

The West has slouched into a position of total submission to the USA and its domination tools over Europe: the EU and NATO.  The central Europeans have even volunteered to become a US protectorate, a territory to house US missile systems and secret CIA prisons.

With the exception of Iran and Syria, the Arab and Muslim world has sold out, some to the USA, others to Saudi Arabia, most to both at the same time.  Latin America tries hard, but is still heavily dependent on the USA while Africa just wants to survive the best it can.  As for Asia, some parts are as sold out as Europe (Japan, Korea), others are trying to keep a low profile, while China is clearly quietly standing behind Russia but in an externally undeniable way even though China stands to benefit more than any other country on the planet from a change in the international order.

The Russians would have much preferred to wait, to buy time, but the US determination to punish it for daring to oppose it on Syria literally forced them to fold and surrender or openly accept the US challenge and stand firm.

I will repeat that again and again - Putin had no other choice.

And now that this is all in the open, you can be absolutely sure that Russia is not playing to return to the status quo ante.  With an amazing candidness both Putin and Lavrov have openly spelled out their goal on Russian TV (Lavrov on the show "Sunday Evening with Vladimir Soloviev" and Putin on during his 4 hours long Q&A yesterday).

So this is the Russian end-goal: to unseat the USA from its role as a world hegemon.  And that goal implies a much longer, bigger and more sustained effort that just force the freaks in Kiev to the negotiating table.  Among other things, this goal implies that Russia must:

1) Force the Europeans to fully realize the outrageous price they are paying for being the obedient and silent vassals of the USA and slowly drive a wedge between the USA and Europe.
2) Force the USA to admit that it does not have the military might to punish or, even less so, "regime change" anybody they don't like.
3) Encourage China and other Asian powers to openly stand with Russia in demanding that international law be adhered to by the West.
4) Gradually replace the dollar with other currencies in international trade and thereby slow down the financing of the US debts by the rest of the planet.
5) Create the conditions for Latin America and Africa to be able to make choices about its future and replace the current monopoly enjoyed by the West in setting the terms of North-South relations.
6) Present another civilizational model which openly reject the current Western paradigm of a society run by small and arrogant minorities.
7) Challenge the current liberal and capitalist economic order embodied in the Washington Consensus and replace it by a model of social and international solidarity (call it "21 century socialism" if you want).

All of the above can be summed up in one word: re-sovereignization.

Since he got elected, Putin mentioned many times the need for a re-sovereignization of Russia.  The Ukrainian crisis has forced him reveal the real end goal of his agenda: to re-sovereignize the entire planet.

This is a tall order and it will take many years, possibly decades, to achieve this goal, though my personal feeling is that the total incompetence and infinite arrogance of of the 1%ers plutocrats which rules over the western world will continue to accelerate that process.

The big question now is this: can the AngloZionist Empire follow the example of the Soviet Empire and collapse without triggering a massive bloodbath on its way down?

There will be violence, for sure, as has been with the former Soviet Union.  But if we can avoid a global conflagration or even a large scale massive war then that would have to be considered as success because it is when they collapse that empires become the most dangerous and unpredictable.

I hope that the above answers many of the questions which have been posted here.

Many thanks and kind regards,

The Saker" IN

Fri, 04/18/2014 - 19:06 | 4674285 mccvilb
mccvilb's picture

"There will be violence, for sure..."


If it comes down to war or the destruction of our constitutional way of life, there will be no passes issued for the money changers and the neo-cons and politicians who fomented or orchestrated it. We are on to you. No hiding in the shadows this time. The ones most responsible will have to stand naked under the kleig lights, where you most assuredly will be exposed for the part you played and dealt with.  

Sat, 04/19/2014 - 01:23 | 4674987 Atticus Finch
Atticus Finch's picture

Our Constitutional way of life???? You've spent the last ten years on Mars, right?

Sat, 04/19/2014 - 02:33 | 4675033 mccvilb
mccvilb's picture

Right. It's all grok to me.

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