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Tuesday, September 2, 2014

Holding the 'Cards': Russia, China and the New Pipeline

Well its Tuesday..  Start of a new work week and all the kiddies should be in school by now learning their ABC's and 123's

And as we mentioned last Friday, this week will be a celebration of sorts for A&G as we enter our 5th year officially on September 6th though that day falls on a Saturday..

Its always a big thing when a blog site can last 4 full years and submit more than 1500 postings in that span mainly because most bloggers suffer boredom or burnout at some point or the viewership is so minimal, that its figured 'what's the point?'

But because of your continued loyalty and readership, we're still going strong..  We're still presenting the truth on all topics we address and always with the sole goal of motivating you and others to think for yourselves; to question everything..
~ Russian bear dog

Never to settle for the dribbles and drabs of information the media and public school education present as 'fact' or 'truth'

Trust but verify..

That concept was made famous here by President Reagan during his interactions with then Soviet Premier Gorbachev around 1986 though it has actually Russian origins

The original proverb is a short rhyme which understandable for Russian readers,  is presented as "Доверяй, но проверяй" (Doveryai, no proveryai).

And that's as good a segue way as any to try to explain as clear and concise as possible why Western Europe, particularly Germany and the US is so keen to pick a fight, militarily if need be, with Russia..
It goes beyond NATO and the juxtaposition of political power in that part of the globe.

G--A--S  (or P-E-T-R-O-L for European readers)

Last night following a grand ceremony in the Siberian city of Yakutsk, Russia and China officially began the construction of a new gas pipeline linking the countries.

The bottom line to Russia - nearly half a trillion after China's CNPC agreed to buy $400bn in gas from Russia's Gazprom back in May.   In return, Russia will ship 38 billion cubic meters (bcm) of gas annually over a period of 30 years.
The 3,968 km pipeline linking gas fields in eastern Siberia to China will be the world's largest fuel network in the world.

As BBC reports:  "The deal will lessen Russia's dependence on European buyers, who have imposed economic sanctions because of the crisis in Ukraine." 

That is not news but here's the key...

The invoices have become increasingly less denominated in USD, and more in CNY or RUB i.e. Chinese and Russian currency.  In other words, they are seeking to bypass the use of the US dollar in their business dealings..
It is the role of the US dollar as reserve currency and its use by OPEC oil producers which has allowed America to retain its political superior position and buffered the people from feeling any real financial pain from the current global recession-depression.

China will start work on the construction of its side of the pipeline in the first half of 2015 and the first gas will be pumped from Siberia to north-east China in early 2019.

So its kinda hard to honestly say Russia is isolated from the world, as Obama has often said when they have such a key trading partner in China which will ultimately for 1.5 Trillion tons of oil to flow annually once the pipeline is up and running.
And it just reaffirms the sad reality that ISIS or no ISIS, the US will need to maintain a constant presence in Iraq for generations, not simply years to ensure that it has access to a steady supply of oil to run its economy and military apparatus.

Also, as a result of this Russo-Sino alliance, Europe will continue to depend on Russia for its gas imports indefinitely yet Russia will no longer depend on Europe for its experts.

As example of the power inequality between Russia and Europe, Germany has announced increased sanctions on Russia to punish them for their involvement in Ukraine..  Europeans are prevented from buying Russian government bonds..
Now as for those Russian gas imports?  Um.. well, they remained untouched..

So what does it all mean?

That means Europe has less leverage by peaceful means over Russia than ever before and increases the likelihood of military involvement to settle economic and/or territorial disputes in the future.

No rainbows.. no silver linings..
Just a continuing meandering, sput-sputtering economy in the US and abroad that most are deeply oblivious to because of the combination of intense ego-centrism ("I'm doing OK so I don't care of the greater world") and the ease of escapism i.e. TV, movies, drink, drugs, etc..

And as long as it continues to mire in muck and people embrace passivity, we will continue to do what we do atA&G; be that small yet steadily let beacon amid the thick dense soup of distortion and distraction.