Showing posts with label Ukraine. Show all posts
Showing posts with label Ukraine. Show all posts

Monday, February 02, 2015

Kunstler: Apocalypse Now and Forever

Kunstler on possible U.S. military aid to the Ukraine. I guess we're in the second Cold War.

Apocalypse Now and Forever


As a political psychoanalyst I find the Super-bowl halftime show the best concise index of how psychotic American culture is becoming from year to year, and the 2015 version signaled a complete break from reality, a nightmare of twerking robots in a hall of mirrors, as if America had utterly surrendered its tattered soul to some rogue motherboard pulsing deep within Dr. Evil’s subterranean palace of sin. Hence it is the perfect analog for understanding otherwise incomprehensible happenings such as the USA’s role in fomenting further chaos and mayhem in Ukraine.

How otherwise to explain things like this morning’s New York Times report that the USA “now supports providing defensive weapons and equipment to Kiev’s beleaguered forces, and an array of administration and military officials appear to be edging toward that position….”

Earth calling New York Times readers: I regret to inform you that this decision was already reached a year ago when we paid for the coup d’état against the elected President, Viktor Yanukovych, after the poor sap decided to not sign up with EU but rather the Russian-backed Eurasian Customs Union. Whoops! You’re so out of here, Bub, State Department Under Secretary Victoria Nuland burbled in a clandestinely recorded phone call to the American ambassador. Will somebody please find Yats! Yes Yats! [UKR politician Arseniy Yatsenyuk] and plug the Bluetooth earpiece of power into his skull!

And so it went this past year with a cabal of the USA, the EU, and the IMF shoveling financial support (billions!), armaments, and surely boots-on-the ground into the Ukrainian morass. Last week, a reporter in eastern Ukraine approached a soldier in UKR army battle garb only to be told, in pitch perfect American English, to “get out of my face.” Say what??? The You-tube clip was seen all over the world and to this minute no agent of the US government has been called to account over it. Like I said, a hall of mirrors.

But anyway, we get a little ahead of ourselves because all this really begs the question: what business do we have in Ukraine in the first place and why should it matter to us that they align with Russia? And more to the point: why is it not transparently obvious that Ukraine is solidly within Russia’s sphere of influence, and has been, really, for more than 500 years, and for an excellent reason that has been demonstrated most recently in Napoleon’s invasion of 1812 and then Hitler’s Operation Barbarossa, the invasion of 1941.

In both cases, Russia owed it survival to the vast expanse of flat geography represented by Ukraine where “General Winter” was able to carry out his own defensive operations of relentless howling wind, snow, sub-zero temperatures, and frostbite that eventually vanquished the invaders. Through most of modern times Ukraine has been under the explicit “protection” of the Russian Czars or has been an outright province under the former USSR. Hundreds of years before that, Kievan Rus was the center of an emerging Russian culture and kingdom that only later picked up and moved to Moscow.

You get the picture: Ukraine has a long association with Russia, a principal association, not always happy, sometimes tragic, but a fact of life and history that the US and its foolish stooges in the EU bureaucracy now wish to challenge for absolutely no good reason. Does anybody who is not whacked out of his/her head on crack, or focused like a laser beam on the gender schism within the Kardashian Klan, remember when the US ever challenged the Soviets over Ukraine? No. And for the excellent reason that we accepted the relationship for reasons stated above. So, whose idea is it now that we should start World War Three over this remote region where so many other reckless adventurers came to grief? And what, by the way, do our people mean by “defensive weapons?” Are not most modern weapons designed to work both ways? Anyway, I see the list includes “anti-armor missiles” (i.e. tank-killers) and “drones,” the latter presumably guided by comfortable American military gamers effortlessly targeting pixelated “bad guys” between Slurpee gulps and taco bites, not exactly American Sniper style.

Monday, September 22, 2014

Kunstler: Barbarism versus Stupidism

Kunstler: Barbarism versus Stupidism.

In my lifetime, the USA has not blundered into a more incoherent, feckless, and unfavorable foreign policy quandary than we see today.

The US-led campaign to tilt Ukraine to Euroland and NATO — and away from the Russian-led Eurasian Customs Union — turned an “intelligence” fiasco into a strategic humiliation for the Obama White House. Notice that the story has vamoosed utterly from the American media headlines, even when the Russian Engineers’ Union issued a report last week asserting that the Malaysian Airlines Flight MH17 was most likely shot down by 30mm cannon fire from Ukrainian military aircraft. The USA State Department didn’t deign to refute it because doing so would have drawn attention to the fact that it was the only plausible explanation for what happened.

Likewise, the campaign to paint Vladimir Putin as Stalin-in-a-judo-robe never really reached take-off velocity, since by all appearances he was the most rational and cool-headed actor on the geopolitical stage, following logical and long-established national interests. If the West had just left Ukraine alone, and allowed it to join the Eurasian Customs Union, that basket-case nation would have been Russia’s economic ward. Now the US and the EU have to support it with billions in loans that will never be paid back. Meanwhile, our European allies have been snookered into a set of economic and financial sanctions against Russia that guarantees they’ll be starved for oil and gas supplies in the winter months ahead. Smooth move.

So, the reason that all this has vanished from the news media is that it’s game-over in Ukraine. We busted it up, and can do more with it, and pretty soon the rump Ukraine region run out of Kiev will go crawling back to Russia begging for a little heating fuel.

Does any tattoo-free American adult outside the Kardashian-NFL mass hypnosis matrix feel confident about the trajectory of US policy regarding the so-called Islamic State (ISIS, ISIL)? First, there is the astonishing humiliation that this ragtag band of psychopaths managed to undo ten years, 4,500 US battle deaths, and $1+ trillion worth of nation-building effort in Iraq in a matter of a few weeks this summer. The US public does not seem to have groked the damage to our honor, self-confidence, and international standing in this debacle.

So, now we’re going to just deal “death from above” on the Black Flaggers across that stretch of their captured territory that runs from Iraq into Syria — violating Syria’s sovereignty in the process, of course. My guess is that such an operation will inspire them to bring the action straight to Europe, the USA, and the grand prize, Saudi Arabia. The movement is too broad now, includes too many psychopaths from all over the world (Europe especially) who hold passports that will enable them to travel easily out of the Middle East and export mayhem wherever they want to bring it.

The USA is stuck within so many pathways of systems criticality in this fall of 2014, that is sure to be expressed in our own internal politics very soon. We’re all set up for a classic state of siege with the Pentagon militarizing every Podunk police department in the land, and one can easily imagine a single IS operation aimed at some soft American target shoving us into hysteria.

While all this is happening, of course, Wall Street and its hand-maidens rev up the engines of malinvestment and bid up false values of things that will do nothing to get us safely into the economy of real things that awaits us. That economy of real things I speak of does not include many of the comforts and conveniences we’re used to — mass motoring, national chain retail, air-conditioning for all, 24/7 electric service — but it’s where we’re going. As reality drags us kicking and screaming toward it, the likelihood of a domestic political convulsion increases. We’ll look back on these weirdly placid years after the 2008 train wreck with amazement. These are the rudderless years of no leadership, of cowardly dissimulating midgets. A people can only take so much of that.

Finance is the weakest link in the chain of systems that allows us to run the old economy. It’s the system most abstracted from reality and the most easily manipulated into ever-greater abstraction. Hence it’s the system most easily subject to fatal slippage. And all it takes to set off the slipping is a simple loss of faith.

Wednesday, September 10, 2014

Kunstler: Down the Memory Hole

The summer's news cycle was spinning rapidly. News came up and disappeared, leaving all sorts of unanswered questions. Where's the follow-up? Where's the analysis? Meanwhile, I have photos from my first trip to the mainland, and I plan to have more about it soon.

Kunstler: Down the Memory Hole.

Monday, September 01, 2014

Kunstler: Busybody Nation

I plan to have some photos and a lot of writing about my trip soon. For now, this is Kunstler's latest column. Happy Labor Day.

Kunstler: Busybody Nation.

I f anyone above a kindergarten pay-grade has figured out America’s vital interest in the Ukraine, it has not been reported — or even leaked from the foundering vessel that is the US State Department. In fact, when you consider the results, it’s hard to understand the rationale behind any recent US foreign policy endeavor. Mr. Putin of Russia summed it up last week, saying, “Anything the US touches turns to Libya or Iraq.” Vlad has a point there, and what he left off the list, of course, was Ukraine, which entered the zone of failing states a few months ago when the US lubricated the overthrow of its previously-elected government.

What complicates things is that Ukraine is right next door to Russia. For many years it was even part of the same nation as Russia. Russia has a lot of hard assets in Ukraine: pipelines, factories, port facilities. Because they were recently part of the same nation, a lot of Russian-speaking people live in the eastern part of Ukraine bordering Russia. The casual observer from Mars might easily discern that Russia has a range of real interests in Ukraine. Especially if the central government of Ukraine can’t control its own economic affairs.

The US claims to have interests in Afghanistan, Iraq, Syria, and Libya. These nations are respectively 11,925, 11,129, 10,745, and 10,072, miles away from America — not exactly neighbors of ours. All of them, one way or another, and partly due to our exertions, are checking into the homeless shelter of failed statedom. Afghanistan was, shall we say, a special case, since it was being used thirteen years ago explicitly as a “base” (al Qaeda) for launching attacks on US soil. But that was then. No other war or “war” in US history has lasted as long. And it remains unclear whether our presence there yet today is a “nation-building” project or a mere occupation, in the absence of some better idea of what to do.

President Obama has made noises about pulling US troops out of Afghanistan, but we’re still there. How is the nation-building project working out? With Mr. Osama bin Laden dead and in his watery grave, and the Islamic extremist action moved to other venues, how significant is Afghanistan’s role as a strategic base for Jihad?

How many educated, media-marinated professors in their Ivy League turrets can explain in one paragraph what the necessity of overthrowing Muammar Gaddafi was, exactly? Anyone remember? I suppose, like many actions in history, it just seemed like a good idea at the time. If the idea was to keep the oil and gas flowing to western nations — i.e. the “Carter Doctrine” —well, excuse me while I cough into my sleeve. Production is about one-eighth what it was before Mr. Gaddafi exited the scene. That really worked.

Then, of course, there is ISIS (or the Islamic State or the Caliphate), the most visible outcome of a decade of US foreign policy endeavors in Iraq and Syria. Good show, ladies and gentlemen! You have managed to give the world a political movement arguably more barbaric than even the Nazis. On Sunday, The New York Times stood back in breathless admiration for the accomplishments and skills of that organization in the headline: ISIS Displaying a Deft Command of Varied Media. Like a mad scientist in thrall to his own creation, the Times appears dazzled by the political Frankenstein monster we have loosed upon the world.

Considering all the current mayhem in the Middle East, and the potential for deadly mischief from it spreading even into the US and western Europe, do we really have any business hassling Putin and Russia about its feckless, floundering next-door-neighbor, Ukraine? In fact, is any other nation in a better position to prevent Ukraine from descending into full-blown failure? Why don’t we just shut up and mind our own business?

Wednesday, August 27, 2014

Monday, May 12, 2014

Kunstler: Whose Client State?

Kunstler: Whose Client State?

My country can cry all it likes about yesterday’s referendum vote in eastern Ukraine, but we set the process in motion by sponsoring the overthrow of an elected Kiev government that was tilting toward Russia and away from NATO overtures. The president elected in 2010, Viktor Yanukovych, might have been a grifter and a scoundrel, but so was his opponent, the billionaire gas oligarch Yulia Tymoshenko. The main lesson that US authorities have consistently failed to learn in more than a decade of central Asian misadventures: when you set events in motion in distant lands, events, not policy planners at the State Department, end up in the driver’s seat.

And so now they’ve had the referendum vote and the result is about 87 percent of the voters in eastern Ukraine would prefer to align politically with Russia rather than the failing Ukraine state governed out of Kiev. It’s easy to understand why. First, there’s the ethnic divide at the Dnieper River: majority Russian-speakers to the east. Second, the Kiev government, as per above, shows all the signs of a failing state — that is, a state that can’t manage any basic responsibilities starting with covering the costs of maintaining infrastructure and institutions. The Kiev government is broke. Of course, so are most other nations these days, but unlike, say, the USA or France, Ukraine doesn’t have an important enough currency or powerful enough central bank to play the kind of accounting games that allow bigger nations to pretend they’re solvent.

Kiev owes $3.5 billion to Russia for past-due gas bills and Moscow has asked Kiev to pre-pay for June deliveries. This is about the same thing that any local gas company in the USA would demand from a deadbeat customer. The International Monetary Fund has offered to advance a loan of $3 billion, of which Kiev claims it could afford to fork over $2.6 billion to Russia (presumably needing the rest to run the country, pay police salaries, et cetera). Ukraine is in a sad and desperate situation for sure, but is Russia just supposed to supply it with free gas indefinitely? As wonderful as life is in the USA, the last time I checked most of us are expected to pay our heating bills. How long, exactly, does the IMF propose to pay Ukraine’s monthly gas bill? In September, the question is liable to get more urgent — but by then the current situation could degenerate into civil war.

The USA and its NATO allies would apparently like to have Ukraine become a client state, but they’re not altogether willing to pay for it. This kind of raises the basic question: if Russia ultimately has to foot the bill for Ukraine, whose client state is it? And who is geographically next door to Ukraine? And whose national histories are intimately mingled?

I’m not persuaded that Russia and its president, Mr. Putin, are thrilled about the dissolution of Ukraine. Conceivably, they would have been satisfied with a politically stable, independent Ukraine and reliable long-term leases on the Black Sea ports. Russia is barely scraping by financially on an oil, gas, and mineral based economy that allows them to import the bulk of their manufactured goods. They don’t need the aggravation of a basket-case neighbor to support, but it has pretty much come to that. At least, it appears that Russia will support the Russian-speaking region east of the Dnieper.

My guess is that the Kiev-centered western Ukraine can’t support itself as a modern state, that is, with the high living standards of a techno-industrial culture. It just doesn’t have the fossil fuel juice. It’s at the mercies of others for that. In recent years, Ukraine has even maintained an independent space program (which is more than one can say of the USA). It will be looked back on with nostalgic amazement. Like other regions of the world, Ukraine’s destiny is to go medieval, to become a truly post-industrial agriculture-based society with a lower population and lower living standards. It is one [of] the world’s leading grain-growing regions, a huge advantage for the kind of future the whole world faces — if it can avoid becoming a stomping ground in the elephant’s graveyard of collapsing industrial anachronisms.

Ukraine can pretend to be a ward of the West for only a little while longer. The juice and the money just isn’t there, though. Probably sooner than later, the IMF will stop paying its gas bills. Within the same time-frame, the IMF may have to turn its attention to the floundering states of western Europe. That floundering will worsen rapidly if those nations can’t get gas from Russia. You can bet that Europe will think twice before tagging along with America on anymore cockamamie sanctions. Meanwhile, the USA is passing up the chance to care for a more appropriate client state: itself. Why on earth should the USA be lending billions of dollars to Ukraine when we don’t have decent train service between New York City and Chicago?

Monday, May 05, 2014

Kunstler's Latest

"Lying or Just Stupid?"

It’s not always easy to define what exactly is wrong with America, but what ever it is, it’s huge.

— Roel Ilargi Meijer, The Automatic Earth.com



Nobody knows, from sea to shining sea, why we’re having all this trouble with our Republic.

— Tom McGuane, Ninety-Two in the Shade


Despite its Valley Girl origins, the simple term clueless turns out to be the most accurate descriptor for America’s degenerate zeitgeist. Nobody gets it — the “it” being a rather hefty bundle of issues ranging from our energy bind to the official mismanagement of money, the manipulation of markets, the crimes in banking, the blundering foreign misadventures, the revolving door corruption in governance, the abandonment of the rule-of-law, the ominous wind-down of the Happy Motoring fiasco and the related tragedy of obsolete suburbia, the contemptuous disregard for the futures of young people, the immersive Kardashian celebrity twerking sleaze, the downward spiral of the floundering classes into pizza and Pepsi induced obesity, methedrine psychosis, and tattooed savagery, and the thick patina of public relations dishonesty that coats all of it like some toxic bacterial overgrowth. The dwindling life of our nation, where anything goes and nothing matters.

It’s not just the individual cluelessness of ordinary people leading lives too frantic for a moment’s reflection about anything, but the appalling institutional cluelessness of enterprises where you’d think combined intellects might tend toward a more faithful view of reality. But these days all we get is a low-order of wishful and clownish group-think, such as this item from today’s New York Times discussing a proposed reversal of Gazprom pipelines along the Ukraine / Slovakian frontier as the solution to the Kiev government’s fuel problem:


Nearly all the gas Washington and Brussels would like to get moving into Ukraine from Europe originally came from Russia, which pumps gas westward across Ukraine, into Slovakia and then on to customers in Germany and elsewhere. Once the gas is sold, however, Gazprom ceases to be its owner and loses its power to set the terms of its sale.

Get that? To avoid depending on Russian gas, they’re going to buy Russian gas from sources other than Russia. What New York Times editor can read this story without spraying her video display with coffee? What genius in John Kerry’s “Haircut-in-Search-of-a-Brain” State Department dreamed up this dodge? Who would think that you could improve a Chinese fire drill by tacking on a Polish blanket trick (i.e. trying to make your blanket longer by cutting a foot from the top and sewing it onto the bottom).

The only conclusion the casual observer can come to is, to put it mildly, these institutions have gone completely meshugga. Since I follow the behavior of these organizations, I know that this is not an isolated example. For the State Department, the entire gambit in Ukraine has been a chain of obvious bungles and miscalculations, starting with our sponsored overthrow of the original elected Kiev government, and the absurd presumption that Russia had no legitimate interest in that region’s stability to the strategy of shoot-yourself-in-the-foot financial sanctions. The New York Times (once America’s “Newspaper of Record”), is now a completely unreliable conduit for un-parsed White House backgrounder propaganda and raw State Department spin, with an overlay of editorial PMS brain fog.

Another humdinger on a somewhat different issue caught my attention the other day in the formerly eminent, now degenerate journal Foreign Affairs (May / June 2014): The United States of Gas, by Robert Hefner III. This idiotic article in the current issue hits on all the usual wishful thinking delusions du jour concerning this country’s energy prospects, namely: due to fracking in shale deposits we’ve entered an energy-and-manufacturing renaissance, we’re soon-to-be the premier energy exporter to the world, and US “consumers” (i.e. citizens) can be assured of driving to WalMart forever — in other words, all economic problems solved. These idiots (editors and fact-checkers included) must get all their information straight out of the Cambridge Energy Research Associates (CERA) PR handouts. CERA, of course, is the official public relations shop of the oil and gas industry.

It’s one thing that this article is patently misleading. What’s worse is the complete absence of any understanding of the fundamental dynamic between the high cost of unconventional oil and gas and its effect on capital formation. In other words, the capital investment for continued future drilling will simply not exist. What a surprise that will be to the people who run this land.

There comes a point in the destiny of a failing nation when official lying is no longer distinct from official stupidity. We’ve crossed that boundary in the USA. It pays to remember that societies get what they deserve, not what they expect.

Monday, April 21, 2014

Kunstler: What's Been and What's Next

April 21, 2014
What’s Been and What’s Next

The wonder is that more Americans are not ticked off about the state of our country than whatever is happening ten thousand miles away. For instance, how come the US Department of Justice is not as avid to prosecute the pervasive racketeering in the US economy as the State Department is for provoking unnecessary wars in foreign lands on the other side of the planet, over matters that have little bearing on life here? This racketeering, by the way, amounts to a war against American citizens.

I’m speaking especially of the US military racket, the banking and finance rackets, the health care racket and the college loan racket, all of which have evolved insidiously and elegantly to swindle the public in order to support a claque of American oligarchs. In other civilized lands, health care and college are considered the highest priority public goods (i.e. responsibilities of government), and national resources are applied to support them under the theory that bankrupting people for an appendectomy or a bachelor’s degree in electrical engineering is not in the public interest. In our land, that would be considered “socialism.” Instead, we “socialize” the costs of supporting Too Big To Fail banks — so their employees can drive Beemers to their Hamptons summer house parties — and a military machine that goes around the world wrecking one country after another to support a parasitical class of contractors, lobbyists, and bought-off politicians in their northern Virginia McMansions.

Hence, the laughable conceit pinging through the news media lately that some dynastic grifter like Jeb Bush or Hillary Clinton will slide into the White House in 2016 as easily as a watermelon seed popped into a shot glass. I don’t think it’s going to work out that way. The US political system needs to be turned upside down and inside out, and I expect that it will be. Either it happens within the bounds of electoral politics, or you’ll see it playing out in the streets and the windswept plains.

Just a glance around the USA these days ought to nauseate the casual observer. We have an infrastructure for everyday life that is failing in every way imaginable. Are you disturbed by the asteroid belts of vacant strip malls outside your town? Or the empty store fronts along your Main Streets? What do you suppose these places will be like in ten years when the mirage of shale oil dissolves in a mist of disappointment and political grievance? How are Americans going to feel, do you suppose, when gasoline just isn’t there at a price they can pay, and they are marooned in delaminating strand-board-and-vinyl houses 23 miles away from anything? Does the sheer immersive ugliness of the human imprint on the American landscape not give you the shivers?

Look at the pathetic and disgusting appearance of our cities, which for the most part present themselves as demolition derby arenas or war zones — except the strongholds of the red-white-and-blue oligarchs: Washington, San Francisco, and especially New York, Financialization Central.

What happens at the “magic moment” when Facebook stops being a narcissistic virtual playground for “selfies” and becomes a bulletin board for political revolution? Think that can’t happen here? And what if that revolution is a kind that doesn’t appeal to you — say, a revolution of race hatred, or fascist zealotry, or Marxist gangsterism of the type that took Russia hostage for 70 years?

All this is happening, incidentally, because the supposed best minds in our nation are paying no attention whatsoever to the most important story of our lifetime: the winding down of the techno-industrial global economy. It doesn’t really matter anymore why they don’t get it. Hubris. Greed. Distraction. Denial. All that matters is that they can’t be depended on and when that happens authority loses legitimacy. And when it comes to that, all bets are off.

The disintegration of Ukraine would be best understood by Americans as a mirror of ourselves and our sclerotic republic, poised to sink into poverty and disorder. Everything we do and say rings hollow now. What used to be called The Establishment has run out of ways to even pretend to save itself. We have no idea what’s next, but it’s not going to be more of what’s been.

Monday, March 31, 2014

Kunstler: Attention Deficit

Kunstler: Attention Deficit.

Apparently someone at the US State Department put out the fire in John Kerry’s magnificent head of hair, because he has stopped declaiming (for now) on the urgent need to start World War Three over Russia’s annexation of the Crimean peninsula. In my lifetime, there has never been a more pointless and unnecessary international crisis than the current rumble over Ukraine, and it’s pretty much all our doing.

After all, we kicked it off by financing the overthrow of Ukraine’s elected government. How do you suppose the US would feel if Moscow engineered the overthrow of the Mexican government? Perhaps a little insecure? Perhaps even tempted to post some troops on the border?

Since the end of the Cold War, the US has engaged in a nonstop projection of power around the world with grievous results in every case except in the breakup of Yugoslavia. The latest adventures in Iraq and Afghanistan, have been the most expensive — at least a trillion dollars — and mayhem still rules in both places. In fact, news reports out of Kabul on NPR this morning raised doubts that the scheduled elections could take place later this week. The country’s so-called Independent Election Commission has been under rocket attack for days, the most popular hotel for foreign journalists was the site of a massacre two weeks ago, and the Taliban remains active slaughtering civilians in the lawless territory outside of the Afghan capital.

Of course, even those dreadful incidents raise the rather fundamental question as to why anything about Afghanistan really matters to the USA. How many years will it take for us to get over the fact that Osama bin Laden ran a training camp for jihadists there? Right now you can be sure that somewhere between Casablanca and East Timor there are training camps for religious maniacs and thousands more casual meet-ups among aggrieved young men with testosterone boiling in their brains and nothing else to occupy their time but playing with guns. Are we going to invade every land where this goes on?

One part of our ever-evolving reality is that the global economy is in the process of cracking up. Despite the claims of one Tom Friedman at The New York Times, Globalism was not a permanent installation in the human condition. Rather, it was a set of transient economic relations brought about by special circumstances in a particular time of history — namely, a hundred years of cheap energy and about fifty years of relative peace between the larger nations. That’s all it was. And now it’s dissolving because energy is increasingly non-cheap and that is causing a lot of friction between nations utterly addicted to high flows of cheap oil and gas.

The friction is manifesting especially in the realm of money and finance. The high energy addicted nations have been trying to offset the rising cost of their addiction, and the absence of conventional economic “growth,” by borrowing ever more money, that is, generating ever more debt. This ends up expressing itself in “money printing,” that range of computerized banking activities that pumps more and more “liquidity” into “advanced” economies. The result of all that is the mis-pricing of just about everything (including especially the cost of borrowing money), and an increasingly antagonistic climate of currency war as all players vie for the supposed advantages devaluation — most particularly the ability to dissolve their own sovereign debts via inflation.

The finer points of all that are debatable as to eventual consequences but we can easily draw some larger conclusions about the macro trends. The global orgy of cheap goods and bubble finance is ending. Nations and indeed regions within nations are going to have to find a new way of making a living on the smaller scale. This is sure to include new arrangements for governance. The breakup of nation states is well underway and is moving from the margins inward to the political center — from the hopeless scrublands of overpopulated nations that will never “develop” to the increasingly sclerotic giants.

The USA is exhibiting pretty severe signs of that sclerosis in the demented behavior of its leaders in episodes such as the current unnecessary manufactured fiasco over Ukraine to the physical deterioration of our towns, roads, bridges, and all the plastic crap we managed to smear over the mutilated landscape to the comportment of our demoralized, mentally inert, drugged-up, tattoo-bedizened populace of twerking slobs.

In short, it is self-evident that Russians have an abiding interest in the Crimea and we have none, while both the material and cultural life of the US is in a shambles and much more worthy of our own attention.


Monday, March 24, 2014

Orlov: Ukrainian Unrest

Dmitri Orlov: Ukrainians on Verge of Nervous Breakdown.

Kunstler: Weak Sister

In which Kunstler discusses Russia, Ukraine, and proposals to undercut Russian power with American exports of natural gas to Europe (a.k.a. fracking for freedom).

24 March evening update: John McCain talks tough about Russia but in
this oldie-but-a-goodie of an article, McCain has cultivated extensive ties to the Kremlin.
(Another reason I'm glad I never voted for him.) Romney also had harsh things to say about Russia in 2012, and recently, but he had invested in Gazprom through his equity fund, later divesting himself of Russian investments around the start of the 2012 campaign. The Russia Today article is boosterish about the country's business climate, as befits the output of a state-owned network, but it's good to know.


Kunstler: Weak Sister

Was it such a good thing in the post-cold-war decades that the US was regarded as the supreme sole super-power? Look what we did with that privilege: fumbled around like an overfed stumblebum, blundering from one foreign occupation to another, breaking a lot of things and killing a lot of people — under the clownishly-conceived rubric of a “war on terror.”

Why is it in our interest which way Ukraine tilts? It has been in the Russian orbit for hundreds of years under one administration or another. Are we disappointed now that Kiev won’t answer to the floundering Eurocrats of Brussels? Was that ever a realistic expectation? Really, the best outcome for western Europe would be a return to the prior condition of Ukraine as a mute bearskin rug with oil and gas pipelines running through it to the oil and gas starved West. The idea that the US could supply Europe with oil and gas instead of Russia is a preposterous fantasy. Anybody wondering whether Ukraine might turn its armed forces loose on Russian forces supposedly massing at its border should ask themselves how Ukrainian soldiers will get paid.

I’m sure Russia can’t afford to annex all of Ukraine. Russia can barely maintain its paved roads. But it obviously couldn’t afford to give up its rented warm water ports and naval bases in the Crimea, either, with the new Kiev government making so much anti-Russian noise since the “revolution.” The annexation of Crimea changes nothing materially about the disposition of Russian military force in the region. They were already there. Given the size of their navy compared to the other nations in the neighborhood, the Black Sea is Russia’s bathtub and has been as long as anyone can remember. Was the brass at the US State Department shocked to discover this two weeks ago?

The recognition that there are some places on the planet where the US can’t exert its influence has also come as a shock to the so-called American Deep State — that matrix of bureaucratic toxic sludge that labors to pretend to control everything and succeeds mainly in embarrassing itself in a world that is now deeply tending away from the centralized control of anything. Nations are breaking up everywhere and for the moment there is no coherent public discussion of the ramifications. Venice voted the other day to secede from Italy — that is, to not send anymore tax revenue to Rome. That should be interesting. How about Scotland’s independence vote scheduled for September? Judging by the British newspapers, there is next-to-zero concern about that. Then there is the list of failed states, Egypt, Syria, Yemen, and probably half the manufactured nations of sub-Saharan Africa, places with no viable economy or polity and too many clamoring poor people. These are parts of the world that will neither develop nor redevelop. In a hundred years they could be no-go zones or just return to howling wilderness.

The US would be better served these days to literally mind its own business. With Detroit in bankruptcy, why would we send Kiev billions of dollars? American urban infrastructures — water, sewer, gas, and electric lines — are falling apart. We have no idea how we’re going to manage most of the crucial economic activities of daily life in ten years, when the illusions of shale gas and shale evaporate in a dark cloud of disenchantment, when we no longer have an airline industry, and most Americans won’t have the means to own automobiles, and there’s not enough diesel fuel to plow Iowa mega-farms, or enough oil and gas based fertilizers or herbicides to pour into the eroding topsoil, and not enough fossil water left in the Oglala aquifer or enough electricity to run the center-pivot sprinklers where the prairie meets the desert? How are Americans going to live and eat and get from Point A to Point B and keep a roof over our heads in this beat-down land?

We’re having no conversation about these things and the political landscape in this country is a wasteland of mirages and dust devils. That is the true weakness of the USA now. We’re incapable of seeing the disorder in our own house. Why should we even glance overseas at others?

Saturday, March 15, 2014

Fracking for Freedom (a post in progress)

I've intended to write this post for about a week or so. Basically, the unrest in Ukraine has given pro-fracking advocates an excuse to push for the United States to drill and frack for natural gas, convert it to liquid form (liquefied natural gas, or LNG) and export it to Europe in order to undermine Putin's control of natural gas supplies and routes to Europe. Some pro-frackers throw in criticism of Obama's supposed inaction for good measure. Fracking and exporting are neither cheap nor simple. Here I will post some links to articles and videos.

Fracking Ban Momentum Builds on Both Sides of the Atlantic.

At least twenty liquefication plants are proposed.

Krauthammer urges Obama to get tough with Putin and expedite 25 LNG plants in the process.

Sen. John Cornyn (R-TX) Joins Call for Natural Gas Exports in Response to Ukrainian Crisis.

The article mentions The Natural Gas Act of 1938.

The New York Times: U.S. Seeks to Reduce Ukraine's Reliance on Russia for Natural Gas.

The article notes that "Congressional Republicans have joined major oil and gas producers like ExxonMobil in urging the administration to speed up oil and natural gas exports. Although environmentalists, some Democrats and American manufacturing companies that depend on the competitive advantage of cheap domestic natural gas oppose the effort, they have fallen to the sidelines in the rush." It adds, "The United States does not yet export its natural gas. But the Energy Department has begun to issue permits to American companies to export natural gas starting in 2015. American companies have submitted 21 applications to build port facilities in the United States to export liquefied natural gas by tanker. The agency has approved six of the applications."

Though this isn't about fracking to export LNG, it is about the Ukraine. Orlov asks, Is Anyone Really in Control in Ukraine?

Fracking is not the only thing being pushed in the name of "national security" and "protecting our friends and allies." On Thursday, retired general James Jones (a former national security advisor in the Obama administration) testified before the Senate Foreign Relations Committee in favor of the Keystone XL pipeline. Rejecting it would make Putin's day, he says. Jones did not disclose his extensive industry ties before testifying. (FYI: There are no disclosure rules for hearing witnesses in the United States Senate.)

This is a C-SPAN video of the hearing.

17 March update: The idea that America can displace Russia as the provider of natural gas is not new, as Orlov points out in his blog post "Shale Gas: The View from Russia."

24 March update: The Nation: "How the Gas Lobby is Using the Crimea Crisis to Push Bad Policy and Make More Money."

Tuesday, March 11, 2014

More on the Future of Oil, and Rand Paul's Proposal to Export Natural Gas



'Peak is Dead' and the Future of Oil Supply."

Dan Dicker, an oil trader, was on All In With Chris Hayes tonight (10 March) to discuss Rand Paul's proposal on Fox News Sunday to drill everywhere for petroleum*. Chris noted the irony of Rand Paul's pro-drilling stance, as he represents a state where coal is the main energy source. In other words, fracking has displaced coal.

Dicker says not only is it unprofitable to export liquefied natural gas, high prices for LNG are not guaranteed. Most of all, the United States risks becoming a petrostate like Venezuela or--Russia, using petroleum as political leverage.

Again, I'll try to compile some of the CPAC material about fracking for freedom soon.

11 March update. From CounterPunch: "Up in Smoke: A Record 36 Percent of North Dakota Fracked Gas Flared in December.

* From the Fox News Sunday transcript (linked above):

PAUL: ...The other thing is Putin needs to be warned, and I'm perfectly willing to tell him, that if he does occupy Ukraine, it will be chaos for him and for the world. If he creates a Syria out of Ukraine, what's going to happen is 80 percent of his oil and gas is going through Ukraine. It will be a disaster for him. And so, he needs to be fully aware of that.

The other thing I've said is that I would do something differently than the president because that would immediately get every obstacle out of the way for our export of oil and gas, and I would begin drilling in every possible conceivable place within our territories in order to have production that we could supply Europe with if it's interrupted from Ukraine.

Monday, March 10, 2014

Kunstler: Deep State Descending

Kunstler: Deep State Descending.

And so it’s back to the Kardashians for the US of ADD. As of Sunday The New York Times kicked Ukraine off its front page, a sure sign that the establishment (let’s revive that useful word) is sensitive to the growing ridicule over its claims of national interest in that floundering, bedraggled crypto-nation. The Kardashians* sound enough like one of the central Asian ethnic groups battling over the Crimea lo these many centuries — Circassians, Meskhetian Turkmen, Tatars, Karachay-Cherkessians — so the sore-beset American public must be content that they’re getting the news-of-the-world. Perhaps one of those groups was once led by a Great Kanye.

Secretary of State John Kerry has shut his pie-hole, too, for the moment, as it becomes more obvious that Ukraine happens to be Russia’s headache (and neighbor). The playbook of great nations is going obsolete in this new era of great nations having, by necessity, to become smaller broken-up nations. It could easily happen in the USA too as our grandiose Deep State descends further into incompetence, irrelevance, buffoonery, and practical bankruptcy.

Theories abound about what drives this crisis and all the credible stories revolve around the question of natural gas. I go a little further, actually, and say that the specter of declining energy sources worldwide is behind this particular eruption of disorder in one sad corner of the globe and that we’re sure to see more symptoms of that same basic problem in one country after another from here on, moving from the political margins to the centers. The world is out of cheap oil and gas and, at the same time, out of capital to produce the non-cheap oil and gas. So what’s going on is a scramble between desperate producers and populations worried about shivering in the dark. The Ukraine is just a threadbare carpet-runner between them.

Contributing to our own country’s excessive vanity in the arena of nations is the mistaken belief that we have so much shale gas of our own that we barely know what to do with it. This is certainly the view, for instance, of Speaker of the House John Boehner, who complained last week about bureaucratic barriers to the building of new natural gas export terminals, with the idea that we could easily take over the European gas market from Russia.** Boehner is out of his mind. Does he not know that the early big American shale gas plays (Barnett in Texas, Haynesville in Louisiana, Fayettville in Arkansas) are already winding down after just ten years of production? That’s on top of the growing austerity in available capital for the so-far-unprofitable shale gas industry. That’s on top of the scarcity of capital for building new liquid natural gas terminals and ditto the fleet of specialized refrigerated tanker ships required to haul the stuff across the ocean. File under “not going to happen.”

Even the idea that we will have enough natural gas for our own needs in the USA beyond the short term ought to be viewed with skepticism. What happens, for instance, when we finally realize that it costs more to frack it out of the ground than people can pay for it? I’ll tell you exactly what will happen: the gas will remain underground bound up in its “tight rock,” possibly forever, and a lot of Americans will freeze to death.

The most amazing part of the current story is that US political leaders are so ignorant of the facts. They apparently look only to the public relations officers in the oil-and-gas industries and no further. Does Barack Obama still believe, as he said in 2011, that we have a hundred years of shale gas?” That was just something that a flack from the Chesapeake Corporation told to some White House aide over a bottle of Lalou Bize-Leroy Domaine d’Auvenay Les Bonnes-Mares Grand Cru. [I added a link should you want to learn more about this wine.--P.Z.] Government officials believe similar fairy tales about shale oil from the Bakken in North Dakota — a way overhyped resource play likely to pass its own peak at the end of this year.

If you travel around the upper Hudson Valley, north of Albany, where I live, you would see towns and landscapes every bit as desolate as a former Soviet republic. In fact, our towns look infinitely worse than the street-views of Ukraine’s population centers. Ours were built of glue and vinyl, with most of the work completed thirty years ago so that it’s all delaminating under a yellow-gray patina of auto emissions. Inside these miserable structures, American citizens with no prospects and no hope huddle around electric space heaters. They have no idea how they’re going to pay the bill for that come April. They already spent the money on tattoos and heroin.

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*I like the recent episodes of Keeping Up With the Kardashians, which I began watching again. In fact, they (Kim, Khloe, Kourtney, and Rob) are part-Armenian. Their father was the high-powered attorney Robert Kardashian, best known for being one of O.J. Simpson's defense lawyers. The show usually airs in tandem with #Rich Kids of Beverly Hills, that I'll discuss in another post.

** This was a big topic at CPAC. I call it "Fracking for freedom." I'll address this in more detail later.

Friday, March 07, 2014

Proyect vs. Orlov

Proyect: The Disinformation Campaign on the Ukraine Gathers Momentum.

Orlov: Reichstag Fire in Kiev. Proyect doesn't even deign to mention Orlov's name.

I don't know much about what's happening there, like most everyone, and one can dispute Orlov's article, but dismissing it as a "pile of garbage" means not bothering to read Orlov's other posts, in which he addresses the post-Soviet collapse, which he attributes to a crash in oil revenues, not the U.S.-Russian arms race.

Monday, March 03, 2014

Kunstler: Let's You and Him Fight

Kunstler on Russia vs. Ukraine.

So, now we are threatening to start World War Three because Russia is trying to control the chaos in a failed state on its border — a state that our own government spooks provoked into failure? The last time I checked, there was a list of countries that the USA had sent troops, armed ships, and aircraft into recently, and for reasons similar to Russia’s in Crimea: the former Yugoslavia, Somalia, Afghanistan, Iraq, Libya, none of them even anywhere close to American soil. I don’t remember Russia threatening confrontations with the USA over these adventures.

The phones at the White House and the congressional offices ought to be ringing off the hook with angry US citizens objecting to the posturing of our elected officials. There ought to be crowds with bobbing placards in Farragut Square reminding the occupant of 1400 [sic] Pennsylvania Avenue* how ridiculous this makes us look.

The saber-rattlers at The New York Times were sounding like the promoters of a World Wrestling Federation stunt Monday morning when they said in a Page One story:

“The Russian occupation of Crimea has challenged Mr. Obama as has no other international crisis, and at its heart, the advice seemed to pose the same question: Is Mr. Obama tough enough to take on the former K.G.B. colonel in the Kremlin?”

Are they out of their chicken-hawk minds over there? It sounds like a ploy out of the old Eric Berne playbook: Let’s You and Him Fight. What the USA and its European factotums ought to do is mind their own business and stop issuing idle threats. They set the scene for the Ukrainian melt-down by trying to tilt the government their way, financing a pro-Euroland revolt, only to see their sponsored proxy dissidents give way to a claque of armed neo-Nazis, whose first official act was to outlaw the use of the Russian language in a country with millions of long-established Russian-speakers. This is apart, of course, from the fact Ukraine had been until very recently a province of Russia’s former Soviet empire.

Secretary of State John Kerry — a haircut in search of a brain — is winging to Kiev tomorrow to pretend that the USA has a direct interest in what happens there. Since US behavior is so patently hypocritical, it raises the pretty basic question: what are our motives? I don’t think they amount to anything more than international grandstanding — based on the delusion that we have the power and the right to control everything on the planet, which is based, in turn, on our current mood of extreme insecurity as our own ongoing spate of bad choices sets the table for a banquet of consequences.

America can’t even manage its own affairs. We ignore our own gathering energy crisis, telling ourselves the fairy tale that shale oil will allow us to keep driving to WalMart forever. We paper over all of our financial degeneracy and wink at financial criminals. Our infrastructure is falling apart. We’re constructing an edifice of surveillance and social control that would make the late Dr. Joseph Goebbels turn green in his grave with envy while we squander our dwindling political capital on stupid gender confusion battles.

The Russians, on the other hand, have every right to protect their interests along their own border, to protect the persons and property of Russian-speaking Ukrainians who, not long ago, were citizens of a greater Russia, to discourage neo-Nazi activity in their back-yard, and most of all to try to stabilize a region that has little history and experience with independence. They also have to contend with the bankruptcy of Ukraine, which may be the principal cause of its current crack-up. Ukraine is deep in hock to Russia, but also to a network of Western banks, and it remains to be seen whether the failure of these linked obligations will lead to contagion throughout the global financial system. It only takes one additional falling snowflake to push a snow-field into criticality.

Welcome to the era of failed states. We’ve already seen plenty of action around the world and we’re going to see more as resource and capital scarcities drive down standards of living and lower the trust horizon. The world is not going in the direction that Tom Friedman and the globalists thought. Anything organized at the giant scale is now in trouble, nation-states in particular. The USA is not immune to this trend, whatever we imagine about ourselves for now.

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* It's 1600 Pennsylvania Avenue.--P.Z.