Paul Roberts: The impotence of the authorities is a matter of their own hands.
The authorities of Russia and China - a complete mystery. They have all the cards in the sanction wars on their hands, and they sit, not having the slightest idea how to play these cards.
The Russians will not get the slightest help from the Western media. Those only cloud the issue, emphasizing that the Russian authorities do not want to deprive their citizens of consumer goods from the West. And this is exactly what the sanctions of Washington should do.
The authorities of Russia and China are in the hands of Washington because Russia and China, thinking that capitalism has won, quickly accepted the American neo-liberal economic views. And this is propaganda that serves American interests.
Over the years, NASA has been unable to function without Russian rocket engines. But, despite all the sanctions, humiliations, insults, military provocations, the Russian authorities are still shipping to NASA these engines. Why? Because Russian economists tell the authorities that foreign currency is essential for the development of Russia.
Europe depends on Russian fuel and energy resources so that its factories and factories work, and houses remain warm in winter. But Russia does not block the supply of energy resources in response to Europe's participation in Washington sanctions because Russian economists tell the authorities that foreign currency is essential for the development of Russia.
As Michael Hudson and I have repeatedly and on different occasions explained, it's all nonsense. The development of Russia is in no way connected with the receipt of foreign currency.
And after all, as the Russians are convinced that they need foreign investments, which, in fact, only serve to take profits out of the Russian economy!
Russians are also convinced that they should freely trade their currency, thus exposing the ruble to manipulation in foreign currency markets. If Washington wants to arrange a currency crisis for Russia, then everything that the Federal Reserve System, as well as its vassals - the central banks of Japan, the EU and Britain - will have to do, so proceed to a ruble reset. For the sake of profit, hedge funds and speculators will join this process.
Neo-liberal economic views are a fake and a hoax. And the Russians bought it!
The same was done by the Chinese.
Suppose that when all these accusations against Russia have just begun - to take, at least, allegations about the Violins - Putin would have taken a firm stand and said: "The British authorities lie through their teeth. The same is done by the authorities of all other countries, including Washington, which repeats this lie. Russia considers this lie to be highly provocative. This lie is part of the propaganda campaign, whose goal is to prepare the peoples of the West for a military attack on Russia. The constant streams of causeless lies and military maneuvers on our borders convinced Russia that the West intends to unleash a war. The consequence will be the total destruction of the United States and their puppets. "
All! This would end all unjustified provocations, military exercises and sanctions.
Instead, we hear about a "misunderstanding" with our "American partners", which only encourages even greater lies and even more provocations.
And in order to get a softer response, Putin could declare: "Since Washington and its European slave puppets imposed sanctions on us, we stop supplying rocket engines, supplying all energy carriers to Europe, supplying titanium to American aircraft manufacturers, prohibiting the passage over our territory of American transport and passenger aviation and we introduce punitive measures against all American firms operating in Russia. "
Perhaps one of the reasons why Russia does not do this - in addition to the erroneous belief that it needs Western money and its good will - is that Russia mistakenly thinks that Washington is getting her European fuel and energy market and will ship its natural gas to Europe. But there is no infrastructure necessary for this. It will take several years to create such an infrastructure. By that time, there will be massive unemployment in Europe, and the subcontinent will freeze in a few winters.
What about China? China has hosted a large number of major US corporations, including Apple, the world's largest capitalization corporation. China can simply nationalize without compensation of all global corporations operating in China-the way South Africa does against white South African farmers, without meeting any Western protest. Washington would be flooded with representatives of global corporations demanding the abolition of all to a single sanction against China and the complete subordination of the government in Washington to the Chinese authorities.
And, in addition to this, China could throw off all the US government bonds it bought, worth 1,2 trillion dollars. The Federal Reserve would quickly print money to buy these bonds so that their price does not collapse. But China could then drop the dollars that the Fed issued to repay the bonds. At the same time, the Fed can not print foreign currency to buy these very dollars. The dollar will collapse and will not cost even the Venezuelan bolivar - unless Washington can order its puppet central banks in Japan, the UK and the EU to print their currencies so much to buy up those dollars. This step, even if implemented, will give rise to a tremendous shock in what is called the "Western Alliance", but what really is the Washington Empire.
Why do not the Russians and the Chinese play their trump cards? The reason is that the leaders of these countries do not have a single adviser whose brains would not be washed by neoliberalism. Brainwashing, which the Americans arranged for the Russians during the Yeltsin years, took root in Russian state institutions. Once in this trap, Russia is just a sedentary duck for Washington.
The case of Turkey is a great opportunity for Russia and China to step up and pull Turkey out of NATO. These two countries could offer Turkey membership in the BRICS, trade deals and mutual agreements in the field of security. China could easily repurchase the Turkish currency in foreign exchange markets.
The same could be done with Iran.
And nevertheless, neither Russia nor China are capable of decisive action. These two countries, just like Turkey, under attack from Washington, sit seated and sit their thumbs.
Author: Paul Craig Roberts (Paul Craig Roberts), Doctor of Economic Sciences, former Deputy Minister of Finance of the United States for economic policy in the administration of Ronald Reagan. He worked as an editor and columnist for the Wall Street Journal, Businessweek magazine and the Scripps Howard News Service. At one time he was the author of a permanent column in the newspaper The Washington Times. He is the author of numerous books devoted to the greatest problems of our time.
Translation of Sergei Dukhanov.