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Further Sanctions Will Hurt
The US Economy (and EU)

By Karl W. B. Schwarz
6-28-14


There is an old saying that the most dangerous part of an automobile is the nut behind the wheel. That same analogy holds true for when a nation has a gaggle of nutcases running the War Crimes Carnival Show in Washington DC and their good buddies over at the EU Commission.

There is a nuance of this latest EU Agreement being signed with Georgia, Moldova and Ukraine. Couched in the words of the EU terms and conditions is the hidden gotcha… only those Ukraine firms that meet EU regulations can now trade their goods freely across the EU. The hidden gotcha is when the products of those Ukraine companies are deemed to be too competitive or too underpriced EU will not grant them as being in compliance with EU regulations.

With all of this talk about free trade between the various EU members, what the EU Commission does not want to discuss is why their policies have increased poverty, created economic stagnation and structural unemployment while they brag about all of their accomplishments. In that regards as to accomplishments they are in the same league as George W. Bush and Barack Obama. As leaders, they truly suck.

You can be assured that self-serving Chocolate King Petro Poroshenko got a waiver so that he can sell his chocolates all over Europe. The other companies will not be so lucky but it will not take them long to figure out that they were played for fools by the US and EU. If the goods step on the wrong toes or compete with the wrong EU special interest, they will not get to trade throughout the EU.

Now those Ukraine companies get to learn firsthand what layers, after layers, after layers of EU regulations do to kill an economy just so EU can add one more nation to the EU roster.

In a very real way Poroshenko just traded the right of self-interest of the Ukraine people into one of lining his own pockets. I have watched for the past 8 years how EU regulations are a stranglehold on real progress. The reason that so many are getting fed up with the un-elected EU Commission is they are killing to growth and job creation of the EU with their self-serving micromanagement of everything.

So, to get to this point of what they are billing as ‘an historic trade and cooperation agreement’ the USA and EU conducted terrorism to affect regime change of a duly elected leader because he would not sign the agreement inked on Friday, June 27 2014 in Brussels.

That is part of what is wrong with the EU in how they make damned sure they limit competition for the existing powers-that-be. On this one Putin can just sit back and watch as the EU Regulation Rot sets in and the people in Ukraine wake up from their slumber. Many in Ukraine will figure out the hard way that their only place to trade goods will be internally and with Russia as it has been since the fall of the USSR in 1991.

The current sanctions imposed by Obama and obligingly followed by EU have already begun to take a negative toll on the US economy and to some extent in EU, too. I have been watching UK and they have already figured out that the USA and EU have already crossed the line with Russia. That is why UK is soft on the current sanctions and any more sanctions.

If you have been paying attention, Russia is moving forward. Even though the EU ­ NATO aficionados that are backing the US agenda in Ukraine to push NATO to the very borders of the Russian Federation, Austria and its energy company OMV have signed an agreement for supply of natural gas via the South Stream pipeline. Even if the US, EU, NATO agenda were to prevail in Ukraine, it will still be Russian gas flowing into EU either through Ukraine or by bypassing Ukraine with the South Stream pipeline and the Nord Stream pipeline.

http://www.zerohedge.com/news/2014-06-24/putin-scores-another-historic-victory-austria-signs-south-stream-pipeline-deal-defia

The saner elite in Europe realize that Russia is an integral part of the EU economy for the foreseeable future regardless of what Washington DC wants or demands. The political agendas of DC do not play out well in the real economy of Europe.

If Russia routes the natural gas around Ukraine, the latter stands to lose a lot of future revenues if that step is taken by the various Russian energy companies. Even though the new Ukraine President Poroshenko it talking tough, Russia could break Ukraine in half about as fast as they put down the Georgia ­ USA attack on South Ossetia in August 2008.

Russia can easily create the circumstances that would crater the IMF loan package that will further subjugate Ukraine. They are waging war on Russia and should not be so delusional to think that there will be no response. Even Merkel is barking like Chihuahua but Russia is not impressed.

When one is a Chihuahua it does little good to push a bear too far. Another factor that Ukraine will soon learn is that when the economic hardships set in over in Ukraine they will have an easier time mending fences with Russia than they will in getting any help from EU.

Maybe these EU fans over in Kiev should have spent more time learning why the economies of Southern Europe and most of the former USSR regions like Hungary, Slovakia, Serbia, etc. are not performing well and the EU shine has now turned into disappointment and disillusionment. The UKIP head in the EU Parliament Nigel Farage calls the EU the ‘new communism’ in how they are truly opposed to nation states, democracy and self-determination. We only disagree that it is really Fascist Zionist Neocon agenda, no longer communism.

I doubt the USA or EU will be willing to front the costs Ukraine would bear economically if Putin decides to put Ukraine into financial meltdown mode. Just in cross-border trade Ukraine has with Russia it stands to lose the figure of around 150 Billion Euros per year if Russia slams the door shut on Ukraine. Many of the Ukraine companies will learn very quick that they cannot afford EU regulatory compliance, they will be denied access to EU markets and their only choice will be to continue trade and business as usual with Russia.

Since the now dead Nabucco Pipeline was to have ended at Austria’s OMV energy company, we can now officially declare the desired EU ­ USA Nabucco Pipeline as officially dead. My sources say odds are high that the Soros ­ USA sponsored White Stream 1 that was to connect to Crimea and White Stream 2 that was to run from Georgia to Romania are also pretty much dead pipeline projects, too.

http://rense.com/general96/southnord.html

Don’t dismiss the content at the link below just because it is a Russian website. Even Bloomberg and major groups in the USA are trying to get President Obama to wake up before the damage gets worse. Apparently Obama and his fans in EU seem to think sanctions are a one-way street but they are not when there are many interconnecting economic issues between various nations and Russia.

Just in aerospace alone the volume of business between Airbus and Russia and other similar activities is about 5 billion Euros per year and very few nations have the aerospace skills that Russia has. The same applies to such things as a major Ford Motor plant in Russia and other international investments and efforts between companies and nations.

http://voiceofrussia.com/news/2014_06_25/US-sanctions-on-Russia-put-huge-risk-on-Americas-businesses-jobs-9594/

Even while Obama is tweaking Putin and his top advisors EXXON is trying to get a colossal deal done with Rosneft, the Russian government owned oil company and the largest producer in the world now.

There are some very serious economic dynamics in play and the USA is going to lose big if they do not start to think straight and act accordingly.

Bush and Blair promised the Moon to get consensus backing for their failed escapades in Afghanistan and Iraq. Rather than engage in political lies, agendas and warmongering, Russia kept to the focus of business, pens and contracts.

Then almost out of sheer desperation EU and NATO thought it was a wonderful idea to attack Libya in an energy grab since nothing else the USA has tried since September 11, 2001 has worked; October 7, 2001 Afghanistan, failed; March 2003, Iraq, failed; Georgia 2008, failed, etc.

The Bush and Blair Show has produced a string of failed efforts and Obama has continued the trend. Nations survive on hard reality, not photo op rhetoric and political agendas that are unobtainable or just hollow talk and juvenile temper tantrums.

It is now starting to leak out that the CIA and DoD were arming the terrorists in Libya even over the objections from many quarters that it was not a wise or prudent game plan. Libya is now in total anarchy and chaos.

http://allenbwest.com/2014/06/operation-zero-footprint-bombshell-truth-benghazi/

Over time it will come out that the USA was behind the terrorism in Ukraine that sparked the overthrow of Yanukovych because he would not sign the EU agreement to put his nation under the boot heels of USA and EU. The Ukrainians do not want to be the next low wage labor pool for the EU. The Ukrainians do not want to be a US - NATO base of operations and spoil their cultural heritage and relationship with Russia.

What the great preponderance of people in Ukraine wants are respect, dignity, the right to build a decent economic future, and even the right to travel and enjoy life. Most EU nations and the USA are extremely restrictive towards the Ukrainians even to get visas to travel. That was part of their overall strategy to punish until they got their way on the EU agreement.

In its current state economically, Ukraine cannot afford the dictates from the EU and just the cost alone to Ukraine to be in compliance with EU regulations so their goods can move cross-border throughout Europe is a figure surpassing many times the Total Annual GDP of Ukraine. This is in part why EU is so behind this super-secret TISA deal so they line their pockets while delivering nothing in return.

Bear in mind that the USA and EU conducted terrorism and murder against the people of Ukraine in their effort to get rid of Yanukovych.

This is a pattern of terrorism conduct by the USA and some within the EU. Seems the weapons were first supplied to Libyan terrorists, then… incredibly… repurchased and shipped illegally into Syria via Turkey. That is what the big stench is about Benghazi.

With and without photos, and enjoy the John McCain Family Photo:

http://rense.com/general96/stench.html

http://www.veteranstoday.com/2014/06/25/the-stench-of-benghazi/

Then it comes out that the Estonian minister that was part of investigating the Kiev shootings was openly discussing with Ashton of the UK that the snipers were killing both sides to stir things up in Kiev. It was not different factions shooting, it was one that had an agenda to get the EU into Ukraine and then NATO pushed to the border of the Russian Federation.

Who spent $5 billion to achieve that according to US State Department Victoria Nuland is the USA.

In most parts of Ukraine the dominant language is Russian, not Ukrainian. In the eastern part of the nation around 35% not only speak only Russian, they are in fact Russian citizens and passport holders. Even in the Odessa area about 25% of the people living there hold Russian passports.

I have traveled often to Ukraine on business and most are fluent in Russian in the bigger cities like Odessa and Kharkov and are either bilingual or marginal in Ukrainian. Russian is by far the dominant language used outside of the government and the rural farming areas mainly in the western part of the nation.

This latest decree by President Petro Poroshenko that the only official language is Ukrainian is not even in touch with reality of his own nation and what language almost all people are fluent in.

Most Ukrainians live just above or below the poverty line. Under the new dictates from EU and USA they have to put up with austerity under the IMF terms and conditions and will be even worse off than they are now. Russia has been both the provider of pensions since 1991 and a major purchaser of Ukrainian exports. Under the USA and EU game plan they lose that and trade down in living standards and income. That is why much of Ukraine did not vote a mandate for Petro Poroshenko in the rigged elections after the USA and EU forced regime change.

They will learn quick that they cannot be subjugated to austerity and afford the cost of the EU regulatory menagerie. This even ties back to the TISA law the US is trying to push through as ‘service companies’ will now rush to Kiev and all over Ukraine to bill their brains out thinking that is the path to get the open trade with EU.

Even though the objective has been since even before September 11, 2001 to lessen dependency on Russian energy supplies, the endless trail of screw ups by US, EU and NATO have had the opposite effect. Russian energy might marches forward unabated and undeterred.

Some with saner minds and less in the way of geopolitical agendas see that there is no way the USA is going to win from the other side of the world and the energy might is here on this side of the world and very much under the control of Russia.

The problem with this tit-for-tat game Bush and Obama have played is the dominoes are now falling in the undesired direction and every additional stupid move by the USA is increasing the blowback of the economic damage the USA itself will receive. The USA has created the perfect storm for self-destruction as economic realities are now collapsing back onto the USA and its economy.

These current reductions in US economic performance, down a whopping 2.9% just in the first quarter 2014, are the shock wave warning that the tsunami is inbound.

Only way to make the DC Auto safer is get rid of this gaggle of nuts behind the wheel in 2014 and 2016 elections in the USA. The economic advisor to President Putin, Dr. Sergey Glazyev is 100% correct that the only solution for the long-term sake of all is to defeat the Fascism in Washington DC.

Do not vote (R) or (D) because you are too lazy to think, read, or even know what the issues are on the ballot. Vote because your economic future is about to go up in flames if you do not act and get the nuts from behind the wheel in Washington DC.


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