Europe Furious That Putin Dares To Retaliate To Sanctions, Blames Economic Slide On Kremlin

Tyler Durden's picture

Either Europe is run by a bunch of unelected idiots, or... well, that's about it.

After blindly doing the US' bidding over all propaganda matters Ukraine-related, and following just as blindly into round after round of US-inspired sanctions, sanctions to whose retaliation Europe would be on the frontline unlike the largely insulated US, Europe appears to be absolutely shocked and is apoplectic that after several rounds of sanction escalations, Russia finally unleashed its own round of sanctions and yesterday announced a 1 year ban on all European food imports, something which will further push Europe into a triple-dip recession as already hinted by Italy yesterday.

In fact, Europe is so stunned by this unexpected "politically-motivated" retaliation by Russia, it issued a press release.

Statement by Commission spokesman on the announcement of measures by the Russian Federation

 

The European Union regrets the announcement by the Russian Federation of measures which will target imports of food and agricultural products. This announcement is clearly politically motivated. The Commission will assess the measures in question as soon as we have more information as to their full content and extent. We underline that the European Union's restrictive measures are directly linked with the illegal annexation of Crimea and destabilisation of Ukraine. The European Union remains committed to de-escalating the situation in Ukraine. All should join in this effort. Following full assessment by the Commission of the Russian Federation's measures, we reserve the right to take action as appropriate.

Surely, Putin is waiting for the European Commission to also issue a #hashtag before he starts shaking in his boots.

For an indication of just how clueless Europe is, we also read that it is ready to appeal to the World Trade Organization to have the Russian agriculture import bans lifted, a European diplomatic source told ITAR-TASS.

“Politically motivated large-scale trade restrictions are a direct violation of WTO rules, which Russia pledged to comply with,” the diplomat said. “These measures will be thoroughly analyzed, and then relevant claims will be submitted with the WTO.”

 

The source added that the European Commission would start analyzing Russia’s ban on imports from EU states as soon as the official list of banned goods would be published.

 

The EU Council may convene an urgent meeting in connection with Russia's response to European sanctions.

 

It is early to say whether the EU will take measures in response to the Russian ban on imports of food products from Europe, source told.

 

“First, it is necessary to see and analyze the official list of product that Moscow intends to ban. After that, decisions will be made both at the European and the national level,” the source stressed.

The punchline: "The Russian ban on agricultural imports from the European Union is an “irresponsible measure” that can lead to losses of billions of euro for European as well as Russian consumers, the source told ITAR-TASS."

In other words, Europe actually thought it would keep escalating without Russia retaliation. If confused, see the first sentence of this article again.

In the meantime, Europe counter-retaliating to Russia's retaliation to European sanction aggression is sure to make the already bad trade war, worse. A trade war so bad in fact, that what snow was to Q1, "evil Putin" will be to Q3. From Bloomberg:

The crisis in eastern Europe is showing signs of disrupting Mario Draghi’s economic outlook.

 

Evidence is building that the conflict in Ukraine and European Union sanctions against Vladimir Putin’s Russia are undermining a euro-area recovery that the European Central Bank president already describes as weak. With the ECB expected to keep interest rates on hold near zero today and refrain from any new policy measures, Draghi is likely to face questions on how he plans to keep the economy on track.

 

The ECB may have few tools left to mitigate the impact of political turmoil that European companies from Anheuser-Busch InBev NV (ABI) to Siemens AG (SIE) say is hurting their business. A volley of measures introduced in June will take time to work, and policy makers have so far shied away from wheeling out a full-scale asset-purchase program.

 

“The euro-zone recovery is very fragile and the macro situation fluid,” said Andrew Bosomworth, managing director at Pacific Investment Management Co. in Munich. “Expect Draghi to elaborate on spillover risks from the Russia-Ukraine crisis.”

Ironic, because this is just as we said would happen when we predicted that Putin will soon become Draghi's best friend and as a result of Putin "aggression" Draghi will have "no choice" but to boost Europe's monetary insanity, which recently crossed into the NIRP twilight zone, even beyond the rabbit hole.

Finally, Bloomberg actually did touch correctly on what the recent trade war escalation is all about in "Russia Sanctions Accelerate Risk to Dollar Dominance."

U.S. and European Union sanctions against Russia threaten to hasten a move away from the dollar that’s been stirring since the global financial crisis.

 

One place the shift has become evident is Hong Kong, where dollar selling has led the central bank to buy more than $9.5 billion since July 1 to prevent its currency from rallying as the sanctions stoked speculation of an influx of Russian cash. OAO MegaFon, Russia’s second-largest wireless operator, shifted some cash holdings into the city’s dollar. Trading of the Chinese yuan versus the Russian ruble rose to the highest on July 31 since the end of 2010, according to the Moscow Exchange.

 

While no one’s suggesting the dollar will lose its status as the main currency of business any time soon, its dominance is ebbing. The greenback’s share of global reserves has already shrunk to under 61 percent from more than 72 percent in 2001. The drumbeat has only gotten louder since the financial crisis in 2008, an event that began in the U.S. when subprime-mortgage loans soured, and the largest emerging-market nations including Russia have vowed to conduct more business in their currencies.

"No one is suggesting"? We are!

As for the propaganda landscape, the scene is already set:

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smacker's picture

Thanks for that. It makes me wonder why there have been so many people on ZH asserting with apparent authority that its max celing is 16,000ft loaded and 23,000ft unloaded. Clearly it can operate at 33,000ft which explains why MH was ordered to lower altitude to 30,000ft when it was diverted by Kiev ATC. I wonder if those "experts" were simply mistaken or paid disinformation trolls? They seem to have evaporated lately.

JohninMK's picture

I think many ZHers were just quoting Wiki and the SU website, perhaps not reading the replies that came fairly early when it was realised that the only problem in going higher was the non pressurised cockpit. Easily solved.

The bigger puzzle is why a SU25 and not their SU27?

On a slightly different topic, the Militia are reporting that last night a Ukrainian SU24, a bomber, attacked Kiev army positions in an area where they are cut off. They say it looks like Kiev would rather have their soldiers dead than walking over the border into Russia.

The recent flight of hundreds of Ukrainian soldiers to Russia, which the junta continuously calls the "enemy" and "the external aggressor," has been a political and PR nightmare for the Nazis in Kiev. They, therefore, tried to respond and help their soldiers in a way which suits their character. So, under the cover of darkness last night on July 6, they sent SU-24s to bomb their own soldiers from the 79th brigade. Rather than seeing them saved, the junta prefers killing them off.

https://vk.com/strelkov_info?w=wall-57424472_10989

basho's picture

"I'm sure the SU-25 pilot(s) will be arrested and charged with mass murder. ho-ho."

supposedly a Pole. think ZH had a comment in this regard

smacker's picture

A Pole pilot? That wouldn't surprise me one jot. Polish elites appear to be very anti-Russian.

NoWayJose's picture

Now we know why the Ukrainian National Security Chief resigned today!

IronShield's picture

Not sure if anyone posted this but this just might heat things up a little:

 

Russians Mock Obama with Racist Laser Light Show on US Embassy

smacker's picture

Is that really a banana in Obama's mouth??

himaroid's picture

Funny. Where can I get one of those arty laser lights?

HardAssets's picture

Theyre even playing the race card in foreign affairs.

 

WillyGroper's picture

I had a bit of trouble trying to determine if it was a reference to ethnicity or what used to be a republic.

p00k1e's picture

Hopefully Russia can BK the U.S. Social Security system – we’ll be able to buy all the oldsters gold on the cheap.    Then Euthanasia for them. 

This will really help the U.S. in the long-run…. 

Atomizer's picture

European Union: This is to punish you Russia. Err, wait! We didn't mean it. You're hurting our economy. We take our demands back. EU is a fucking joke, talk about shooting yourself in the foot.

Shakes my head in amazement. 

Escapeclaws's picture

Fee Fi Fo Fum!
I smell the ruse of an Englishman!

This enmity between the US and Russia has British fingerprints all over it. Without British machinations it is likely that the US and Russia would be friends.

Check out Tarpley.net. Read his essay on the "Great Encircler" Edward VII and how his machinations led to WWI. Tarpley has also posted his 1995 video on the subject.* Fascinating is the way highly placed people in England were inquiring about whether there was any news on the assassination of Archduke Ferdinand just before it occurred.

Basically, Britain is Master and America is Blaster in this geopolitical Masterblaster duo.

* There's also a very informative book on this written at the time by a Frenchman and another short essay by a German. It includes an essay by Tarpley as well. See "La France Conquise" at Tarpley.net. How can we hope to avoid WWIII if we have no idea who the responsible parties are and what is really going on behind the scenes?

Anarchy 99's picture

I agree, I have stated many times here, Europe's old money, and managed by "little london". the US is just the muscle.

Renfield's picture

There was also never an "American Empire". The British Empire morphed into the Globalist Empire at Bretton Woods. Down with any and every World Reserve Currency. May I see the day that finally rids the world of the reserve curse.

JohninMK's picture

The British Empire may have morphed into the American Empire but the benefits split changed. From then on the only beneficiaries from the old British Empire were the rich, whereas before the whole community benefitted.

Ghostdog's picture

No matter what happens, Krugmen is mastubating wildly at the thought of more money printing

Atomizer's picture

The scary part, he's teaching the next generation exponential economic failure. 

To the poster above, thanks for link. Will look into it. ;-)

basho's picture

what 'next generation' ?

Atomizer's picture

20-30 aged adults. Then next generation is 10-17 aged children. Do you understand now? 

Banker Buster's picture

It seems more and more they are blaming the slowdown and a horrible recovery on Putin and Russia.  I'm seeing it all over the headlines now, Draghi = the recover is not working out because Putin.  I guess the HFT bad guy fizzled out a little so they went with their next best fall guy.  

 

It's not Putin, it's the brain dead number crunching monkeys over at the fed.  

Sandmann's picture

Funny that. You don't sell something to someone and he's at fault.  He says he doesn't want to buy from you any more and you get upset.

The Ukrainians can buy everything the Russians refuse and can get TARGET2 loans from Germany

Sandmann's picture

Having just had EU-wide Pseudo Elections the EU Commission did not bother discussing these sanctions with the EU Parliament but dealt with Obamatron himself by-passing any EU-elected entity.

Then again the TTIP Treaty which must be agreed if EU politicians are not to have details of their pederasty leaked by the NSA, is also negotiated in secret and requires suspension of EU Law in order to do so.

It is really a case of NATO having an Economic Subcommittee called EU

Peter Pan's picture

The Europeans have given a new meaning to the word WANKERS.

This meaning will be hard to beat unless the Nobel Committee gives another Peace Prize to Obama or Kerry.

himaroid's picture

Is there a Polonium tester/taster at the white house?

lost money's picture

Everything is the fault of the USA and its controlling JOOOOOS. Putin is just a peace loving guy who is compeled to defend poor mother russia from the evil western jooooish led cabal.

that's the majority opinon on this site right?

IronShield's picture

If that's your assertion, just change your handle to "lost".

Freddie's picture

The State Dept shills arrived early this morning.  Say hi to your boss Nudelman.

Peter Pan's picture

Basically your conclusion is right but your tone is wrong.

If you want to talk about evil you just have to follow the trail of US interference in foreign nations not to mention the bombing of Japan despite advice to the contrary by its own generals.

Russia has had its own share of evils with its Gulags and other atrocities but at least it has moved further away from the dark whereas the US is moving closer and closer if not actually beyond the Orwellian nightmare.

HardAssets's picture

The USSR was Orwell's '1984' world. They've taken a few steps back from that. On the other hand, the USA is rushing toward '1984' and 'Brave New World' (where people will be conditioned and/or programmed to love their servitude). Unfortunately, the oligarchs used the wealth created from what little freedom and true free market capitalism that existed in America, to build their sophisticated technocratic nightmare. Such a system could not be built in the '1984' like USSR. The boot on the neck of humanity caused too much resistance and was extremely inefficient. In the USA people are unaware that they are slaves, they think they are 'free' and 'vote' for their 'leaders'.  They cheer their servitude. This is a much more dangerous system than '1984' USSR.

basho's picture

maybe you should read a bit more.

but you should be commended for not screaming 'anti-semite' and over wallowing in your self-pity . lol

The Chief's picture

I'll bite. Although no one on ZH that I have read hates Jooos, as you call them, I would have to try very hard not to understand the reason why any thinking, educated, Russian today would NOT hate them.

Which part of the stalking, western cabal is not commanded by a "Joooo"? Define cabal? What we know is that Russia was nearly decimated in the first half of the last century by Joooos. It is historical fact, not conjecture. A literal genocide.

It was assailed again in the 1990's by a criminal cartel of Joooo bankers in the west and Joooo oligarchs in the former USSR. Putin noticed, as did the rest of the sentient planet. He did something about it and is now paying for his affrontery.

It's only a small matter of time before the death toll will permiate the sanctity a slumbering, anethetized west. Already, the internet has allowed fissures to develop in the wall of the western media conglomerate which is largely controlled by, you guessed it, Jooos (as you call them). This time Putin's people are more vigilant if only because their countrymen had been slaughtered by the millions by those peace-loving Jooos in the past. Putin's people are fighting back. Putin's people will win, and win for the right reasons.

On a lighter side note- Why do you think that Ian Fleming chose a Joooo, "Blofeld", as the name of his most evil super-villian? Or "Goldfinger"? As we were taught to believe, they were coniving, sworn enemies of the West. Now they have gone legit (in appearences only) and have homes in RI,  CT, or NY. They are much more evil than before with complicit political and MIC establishments at their finger tips. "Monster" is an overused term. I can't think of anything else at the moment to describe them more accurately.

We, Joe Blo Citizen, are at the point where we have to pray for the system to get shredded in order for something better to develop for the futuire of our kids and country. There must remain those amongst us who will remember the who, what, where and why during the reset, especially the WHO.

 

cn13's picture

And Putin hasn't even come close to pulling out his "wild card", the natural gas flow to Europe of which Russia supplies over 30%.

This is not going to end pretty. 

Peter Pan's picture

Quick before he stops the Russian brides. 

Don't worry everyone, my sources tell me that they are all going to gather around the table for a conversation like grown ups quite soon.

Gold may well get hammered but what's new?

basho's picture

...and someone mentioned titanium the other day. hmmm

Joe Tierney's picture

Stupid damn hypocrite euros!

 

They complain that Russia's sanctions are "politically motivated". What the hell motivated theirs against Russia in the first place???? Politics! The politics of demonizing Russia to please their U.S. master.

 

The politics of arrogance and stupidity - thinking they can get away with whatever they want against Russia.

 

The smug politics of elitism.

Kina's picture

It isn't just the average American who is totally dumb and the sheep of US propaganda....Australians are equally stupid and easily deluded. 

 

Just check on any Austrlian poltical or economic blog...when they discuss Russia Ukraine USA it is the same view as the MSM.

Australian bloggers are so stupid to think that this is all about Russia trying to take over Ukraine, or shooting down MH17...... and that the current Ukraine leadership is all white hat and walking the good walk with USA against the evil Russians.

They believe Putin has lost it with his sanctions, that he is only bluffing and so on.....how do you counter such deep ignorance? They are like 3 year olds expressing a view on open heart surgery....the span of their ignorance is too large to cover.

But as soon as they feel the economic pain, or physical pain associated with all out war....slowly they lose their MSM glasses and want out.

I call them, the Murdoch, Fairfax media blogs...the indpendents like Pollbludger especially ignorant and truly stupid.....call them warm milk masturbation blogs.

Australia like the US never suffered the way Europe and Asia did during the last major wars....so lessons in  critical and survival thinking never ever learned....just being lead around by US propaganda is all they are good for.

 

 

Anarchy 99's picture

Australia , 20 million sheeple, they are relevant?

Peter Pan's picture

Unfortunately too many Australians are still living out there real estate fantasies courtesy of a still strong market driven by the Chinese. Thus they are too busy to engage in critical thinking. 

If Chinese money stops flowing down south or Chines orders for iron ore start to freeze, Australia will be like the proverbial bug meeting the windscreen at 200 miles an hour.

HardAssets's picture

@ Kina - I can sure relate to what youre saying.

The US population is so ignorant. These moves by the various players and their proclamations are about propaganda directed to the fools at home. Its difficult to break through the stupidity. It was created purposely from years of 'schooling' designed to dumb people down. - - - I was talking to someone recently about this, trying to show them the evidence and how it differed from what they saw on 'news' programs. They wouldn't have it. They 'knew' that 'Russia is evil' and that was that. 'Prophecy' told them that. They wouldn't even look at evidence.

Even when really bad suffering is common, such fools can be manipulated to assign cause to anything and anyone. But, many of us were also ignorant on these matters before 'waking up', so maybe others can do the same.

The Chief's picture

We should have let the Japs have Port Moresby. Sometimes I am astonished by my brothers Down Under.

PrecipiceWatching's picture

Oh this wholly ignorant, broad brush shit is fun.

 

The "average European" and the "average Asian" are also, in their own way, "totally dumb" and are literally soaked in their own "delusions".

Raging Debate's picture

Blame shifting has got to be as old as human language itself. I think it is important to summarize how we got here:

1) Decision to make China next reserve currency happens around late 1990's. Outsourcing accelerated to China and other nations.

2) Glass-Steagall repealed.

3) Debt is issued to mask stagnant wages, housing bubble created to "extend and pretend."

4) More manufacturing, wealth, trade secrets and military secrets shipped to China.

5) 2008 crash created by overleverage, debt overhang 40%. Investment banks line up at Fed discount window and use bailout money and dump into necessities like oil creating knock-on inflationary effects. Job losses, depression begins. Wages and real wealth decline for majority of peopulation as housing bubble bursts. More outsourcing, insourcing begins acceleration of immagrants flooding country and receiving benefits further straining social safety net which cannot be paid for long-term anyways. Printing fills the gap. More inflation through 2014. Lot's of bankruptcies, foreclosures and desperate hurting people.

6) Increased taxes from local and state governments to avoid reform, cops as tax collectors creating societal angst, police state on top of inflation and poor wage angst. Obamacare tax which is windfall for insurance driving insurance costs up. Cuts in medications and services for medicaide and medicare.

Did I miss anything? Oh yeah it is Russia's fault. (sarc)

Two dogs's picture

According to "The Miscreants’ Global Bust-Out",  the Russians certainly had a hand in the 2008 crash.  Maybe winding them up is not such a clever idea by Western governments.

Atomizer's picture

Well said. 7,8,9,10 can be listed. No reason to bullet point. We have already discussed on Zerohedge. 

Itchy and Scratchy's picture

I'm kinda surprized the EU don't blame Vladdie for gettin' themselves into their mess in the first place?