Showing posts with label gas. Show all posts
Showing posts with label gas. Show all posts

25 March, 2022

Russia and WW3: How did Europe's leaders get policy so wrong?

World War Three! 

The EU's economy is burst like a flat tyre. Today's policy repeats the errors of the 1970s when OPEC's Oil Weapon punctured Europe's economy. A decade of Stagflation followed -- a combination of high inflation and stagnant growth. 

Then, foreigners used oil price blackmail to change foreign policy. They quadrupled oil prices in 1973. They quadrupled them again in 1979.

Today EU's Russia policy is self-inflicted. It is suicidal. World War looms. 



Are leaders abandoning 76 years of peace in Europe -- the longest in all its history?

How did European leaders burn Europe's most precious asset like a candle under a blow-torch?

Let's go back to where and when Europeans gained that peace. 

In 1950, while the Russian Red Army was poised to conquer worn out, post-war western Europe, French Foreign Minister Robert Schuman made a proposal, the like of which no nation in history had ever seen before. 

Remember the context. 

The French Communist party was the largest in the French National Assembly. Post-war inflation topped 60 percent. Schuman first reformed the currency base. When in 1947-8, Schuman had been elected Prime Minister, the US ambassador cabled that a Communist coup d'Etat was imminent. Insurrectional strikes paralyzed the country, riots caused chaos, trains were derailed. 

Josef Stalin ruled the Soviet Union and his Red Army controlled the Baltics, Poland, East Germany, Czechoslovakia, Hungary, Bulgaria, Romania and other countries. Millions were enslaved in Gulag camps. Other millions were executed at his personal behest. But in western propaganda however, he was the benign, pipe-smoking 'Uncle Joe'.

July 1949: French Foreign Minister Schuman points at Soviet Foreign Minister Andrey Vishinsky,
watched by US Secretary of State Dean Acheson (left) and UK Foreign Secretary Ernest Bevin.

Schuman's analysis was far different from many commentators. He proposed a New Europe by making war 'not only unthinkable but materially impossible.' 

On 9 May 1950 the French Government accepted his proposal. At 4.30, in a notably strong, firm voice, he pronounced his plan to the press.

'Conditions in Europe are going to be entirely changed.'

'France has acted primarily for peace, and to give peace a real chance.'

'All Europeans, whether from the East or the West, will benefit from this.'

'Europe will be born of this.'

'France has acted and the consequences of its action can be immense.'

They were. They turned the world right-side up. Europe entered its longest period of peace and the greatest prosperity in all its history.

Schuman's proposal envisaged a supranational economic Community, firstly of coal and steel. It had innovative, new institutions: 

  • an independent High Authority, 
  • an elected Assembly, 
  • elected consultation of associations of workers, consumers and enterprises,
  • a Council of national ministers and 
  • a Court of Justice. 

It would create a New Europe based on the hitherto unknown principle of a supranational Community of Coal and Steel.

 All Europeans were invited to join, Schuman declared. 


Russia, of course!

What about Russia, one journalist asked. Can Russia join?

Schuman's answer was shocking to those then. It is shocking to many today locked in boxed thinking.

Russia? But of course! (Mais oui!). 

Russia under Stalin! 

Schuman's grasp of reality and duty was light-years away from many of the leaders today. 

To understand Schuman's design for what he called the European House, we have only to look at his earlier achievements. He helped reform inflated currencies on an international scale. He was instrumental in 1948-9 in creating NATO. It offers mutual defence against any who threaten and invade one of the partner States holding common values. 

What were those values?

Schuman's government had proposed a European Assembly and a common market in July 1948. The Convention of Human Rights and Fundamental Freedoms listed those values. Membership of the Council of Europe was restricted to States who agreed. Freedom presages the end of tyranny.

Marx's Mistake

Karl Marx had analysed what he called the contradictions and crisis of capitalism. Schuman had analysed the contradictions of atheistic communism. 

How, in God's good earth, would Russia, then Soviet Russia, live in peace and prosperity with the rest of the Continent? For Schuman the answer was the same as would admit post-Nazi Germany and Austria with their horrendous history into a Community of peace. 

He came up with precise predictions. The Soviet Union would collapse before the turn of the century, he told young politicians at the Assembly, although he would not live to see it. Europeans must be ready for that event. They must welcome those freed from its bonds. Politicians failed.

Isolation by former victims leads to repetition of violence. Each nation has innate qualities of culture, resources and geography. Nations should not become intoxicated with their assets to use them as instruments of domination. A Germany that played power politics between East and West was a danger. Post-Nazi Germany, Schuman said, should be welcomed  on the basis of equality by its former victims. 

The same policy that goes for Germany, goes for Russia. Isolating Russia drives her to work against Europe and into the hands of Communist China. It drives Europe into energy and food penury.


What should be Europe's answer for Russia?

Schuman wrote about a 'durable, organic link' to help nations blossom in freedom 'by mutually beneficial efforts and using their common resources.' That Community method is the best way to serve one's own country.

But any misuse of resources for war must be stopped at its first manifestation. 

'We must remove all reasons for war, and suppress it up to and including any temptation to start one. Nobody, not even the most unscrupulous government, should have an interest in it any more. I will go further: we want to remove any means to start a war, and to remove all temptation to war, and to risk one for gain. The worst of racketeers will be unable to spring a war on fellow Europeans.'


The Council of Europe Convention provided that instrument. The three European Communities with their common management of coal and steel (classical materials of war), atomic energy (nuclear war) and the common market (trade war) provided peace-enhancing infrastructure, aided by international anti-cartel powers.

Hope for Europe's failed leadership

After the collapse of the USSR, western leaders were not prepared to welcome post-Communist Russia at the moment of its great need.  Russia asked. Russia jointed the Council of Europe in 1996. But on 15 March 2022 Russia voluntarily withdrew. 

Western leaders thought they knew better than Schuman. They were less altruistic. Since Maastricht, they created a complex, dense and undemocratic 'European Union' for themselves. 

The Community future beckons. A European Energy and Security Treaty creating a new Community would bring Russia, the Ukraine and the West together. 

Instead of World War III, the participating States would have guaranteed peace and prosperity. 

But are our leaders too proud and obstinate to see it and work for it?

Do they prefer the suicide of civilisation?








27 February, 2022

Are Russians all evil and Ukrainians all Angels?

Ukraine Russia Crisis part 2

Russia is an international bandit, Ukrainians are all angels!

Caution.

Do not get swept up in media hype. For some reasons the EU, probably following the US lead, designates Ukraine as the poor, little victim of evil Russia. Neither State is a paragon of virtue. Ukraine runs private armies as does Russia with the Wagner Military Company.

For eight years those Russian-speakers in the Donbass who refused to conform to the decree that only the Ukrainian language was legal have been punished. For years on end, the civilians and schools are subject to massive destruction of bullets, mortars and 150mm howitzers. From 2014 to May 2021 some 14,000 people have been killed, most of them among the Russian-speakers. 

Belgium has three language groups: Flemish, French and German. Should the Brussels government bombard the communes when and if it changed to a two language State? 

Russians say the USA declared war on Serbia, Libya, Iraq and Syria where US citizens were not threatened on a daily basis as Russian-speakers are in the Donbass. Why were western media silent for those 8 years? 

Are western leaders going to explain the full context now? The reverse! EU Commission president von der Leyen wants to ban all Russian media. On what basis? How does that help EU citizens?

The fact is that neither Ukraine nor Russia are Member States of the European Union. Why then should its leaders be advocating probably the worst possible policy for Europeans? Besides provoking a wider war by taking sides, Europeans may end up with doubling or tripling of energy bills. A flat economy or its destruction may result.

Who gave the EU bureaucrats a mandate to destroy the livelihood of millions of its citizens?  

If the EU proposed a real peace policy, the area from Spain to Siberia could experience unprecedented prosperity and cooperation that it had ever seen. Such a policy could tie Russia to a new form of supranational democracy instead of casting its lot in with China and autocratic Communist codes.

Instead the EU is proposing arms shipments to the troubled area! How does that help citizens of the EU still recovering from Covid mandates?

Who will get the arms?

Most corrupt State in Europe according to Council of Europe, and Transparency International.

Ukraine most corrupt country in Europe after Russia

FEBRUARY 2018

Ukraine most corrupt country in Europe after Russia.

Ukraine ranked 130th among 180 countries in the Corruption Perceptions Index (CPI) 2017 released by Transparency International. Ukraine improved its last year’s result by one point and got 30 points out of 100 possible. Next to Ukraine stand Gambia, Iran, Myanmar and Sierra Leone. Ukraine was able to achieve a slight improvement due to the fact that in 2017 the Ukrainian anti-corruption authorities (Special Anti-corruption Prosecutor's Office and National Anti-corruption Bureau) forwarded to courts first corruption-related cases where the suspects were high-ranking officials.

The Biden family and other US elites have intimate connections with Billionaire Oligarch Ihor Kolomoisky 

On Friday, U.S. Secretary of State Anthony Blinken banned Kolomoisky and his immediate family from America, citing Kolomoisky’s “significant corruption.” ...

Kolomoisky, who built his fortune during the lawless years immediately following the fall of the Soviet Union, reportedly has a controlling interest in Burisma, the Ukrainian oil and gas company which put President Biden’s son, Hunter, on its board of directors in 2014 at a salary of $50,000 per month. Kolomoisky dispatched his private army to take over companies and destroy a Russian-owned oil and gas refinery in Dnipropetrovsk in 2014, according to reports.

NY Post, March 6, 2021.

Putin is an opportunist and sees post-Afghan USA as historically weak, spineless and corrupt. 

Billions of dollars of aid have gone missing in Ukraine from US taxpayers and from UN agencies. Is the war useful for US elites as smoke and fog? Is it a case of the tail wagging the dog? Special Counsel John Durham has already filed the first criminal depositions of a devastating investigation of widespread corruption of the US establishment. 

. 

 

 

Next:

Could the rise of Russian and Ukrainian nationalism and the present crisis threatening the very existence of the European Union have been foreseen in the 1990s after the fall of the Soviet Union? 

 

02 January, 2017

Europe's interest when Trump clears the Washington Swamp


Why did President Obama expel 35 Russian diplomats from USA? Why did Russian President Putin not react with American expulsions? Why did Washington Post get into a panic about Russian hacking into the Vermont Electricity Utility and then admit it was a fake scare? It was adware on a laptop. Why, before exiting gracefully, has President Obama been bringing in a record-shattering 97,000 pages of rules and regulations, some which will restrict press freedom?
The short answer is fog and smoke. Let me explain.

This is not just a simple matter of espionage. It is not about Russian manipulation of the US elections to “force” Donald Trump on a reluctant American electorate. Nor is it just outgoing Obama being nasty to in-coming Trump.
In a democracy all the electorate is free to vote for whomsoever it wants. That is based on information.The crux of democracy is openness and transparency. If there is an attack on democracy itself, then bipartisan or multi-partisan action is required. Not here apparently.
If some Democratic party scandals are spilled by anyone, that does not make the election result invalid. A better informed electorate is what all Democrats should applaud. After all Democrats tried their hardest to paint the dirt on Mr Trump’s past. At the heart of the complaints of the Democrats are the leaking of emails from the Democratic National Committee (DNC) and its chairman John Podesta. These are seen as explosive as Hillary Clinton’s normally highly illegal, non-secured server, plus 650,000 more emails involving Huma Abedin, her Saudi-educated assistant from a prominent Muslim Brotherhood family. She worked also simultaneously for the Clinton Foundation.
According to Julian Assange of Wikileaks, both the Clinton Foundation and also ISIS (Islamic State) received tens of millions of dollars from Saudi Arabia and Qatar.
In the email sent on August 17 2014, Hillary Clinton asked Mr Podesta, who at that time worked under president Barack Obama, to help put “pressure” on Qatar and Saudi Arabia regarding the countries’ alleged support for the terrorist group Isis.
“We need to use our diplomatic and more traditional intelligence assets to bring pressure on the governments of Qatar and Saudi Arabia, which are providing clandestine financial and logistic support to Isil and other radical Sunni groups in the region,” Ms Clinton wrote.
Who is shocked that the Russians are spying on Americans or Americans spying on Russians? Who is shocked that the USA or Russia might want to be involved in “regime change”?
First two things should be made clear.
Russians are expert in disinformation. In Soviet times the biggest department of the KGB intelligence services was the Disinformation Department. One of their major areas of disinformation, as revealed by the highest level defectors, was to instigate the idea — still paralyzing western society — that a Palestinian (non-Jewish) nation exists and that Yasser Arafat was not an Egyptian-born agent of Nasser, but the leader of the phantom nation fabricated in 1964. Previously Arabs refused to be called Palestinians. That was the name the world called Jews! We presented those facts on several occasions. Repetition of lies is a technique used by the Nazi Goebbels and false religions and ideologies throughout the ages.
Secondly, a foreign intelligence service that reveals some truth and fact could well be doing a western audience a favor. Western governments have been losing public trust, typified by Brexit. They have their own disinformation services — they are generally referred to as public relations campaigns. “Spin” operations by definition do not tell the unvarnished truth.
A disinformation service wants to hide the truth and emphasize what is irrelevant or distracting. That’s why we are hearing a lot about Russians and so little about Saudis and Qataris.
The big issue also revolves around the media. The Obama and Clinton camp accuse a multiplicity of non-mainstream news sources of being ‘Fake News’. But it is many of these independent news sources using diverse proofs that call the big mainstream media organizations the real ‘Fake News ‘ sources. They refuse to discuss the most sensitive and hence newsworthy stories.
The Mainstream Media (MSM) have proved themselves incompetent, willingly out of touch, or acting like Spin-Meisters. They plumbed for Jeb Bush as the obvious Republican nomination. They lampooned the very idea of Donald Trump becoming president. Out of the question, they said. But the non stated spin was ‘He is not part of the set-up or the game we have been playing for decades.’ Those who said ‘Trump is the man,’ were ridiculed. But they were right.
So what is the background? What are the present issues?
Petroleum power, Presidential pretender, Podesta, Psychology pioneer, pedophilia . One can add a couple of Cs for Cartels and corruption.
Many these explosive issues are likely to be exposed during a Trump presidency and with an active Republican Congress. The outcome is, as this column said several years ago, likely to open major crises on both sides of the Atlantic.
Power politics is a dirty game and involves the use of inculpating information from the time of the Kennedy assassination and the Nixon Watergate tapes.
Geopolitics use heavy weapons. War, corruption, blackmail. Moral policy will bring peace but is seldom applied. Fifty years ago this year Saudi Arabia tried oil blackmail — the oil weapon — in order to change the foreign policy of USA and Great Britain. Muslim OPEC States tried the same thing again in 1973 during the Yom Kippur war with Israel — this time against the whole of the European Community. They said Europe would not get a drop of oil unless they became anti-Israel in their foreign policy. That would be called Petro-Jihad.
That should give a clear idea about where the battle lines of global politics are drawn.
Instead of selling oil at a profitable 2 dollars a barrel, Saudi-led OPEC ratcheted up the price by cartel action. It reached 147 dollars, then crashed. It doubled in 2016 and is on the way up again. Each year oil States rip the equivalent of multiple times the EU budget from the European economy. That can be compared to sucking the blood out of a free-market economy.
Then they re-invest the cash profits and “spin” it via media and public relations to further jihadi aims. Saudi and other petro-jihad money finance Wahabi mosques across Europe. It finances chairs of Islamic studies in universities. It finances school text books to teach the younger generations about how to worship like a Muslim, facing towards Mecca. Unbelievers are second or third class citizens. There are no churches in Saudi Arabia, nor Bibles.
How much blackmail money is involved? Since 1973, Saudi Arabia alone must have made profits over production costs worth multiple trillion dollars. OPEC as a whole probably gained around 9 trillion.
oil-prod-73-to-2011


Where did this fabulous wealth go? Not all went to building castles in the Saudi sands but much went on armaments to jihadi armies fighting enemies of their religio-political theocratic monopoly. (Secularists like Saddam, Qaddafi and Assad). Billions went on warfare to cut territory for pipelines from the Gulf States through to the Mediterranean Sea. This again means having the Sunni-friendly Al-Qaeda and Islamic State bite off parts of Syria. Russia, whose economy depends on exporting high price gas and oil to Europe made ties with Shi’ia Iran. It held the line for Assad. Iran needs its own pipeline to the Europeans knowing they will pay any price in oil and gas blackmail.
Europe has long been more vulnerable than the USA, which now has its shale gas and oil. Nevertheless the Obama administration’s bias is apparent from the rebuke it got from UK’s PM Theresa May. She objected to the unwarranted condemnation of Israel as being under “extreme elements” in Secretary of State John Kerry’s parting speech. That epithet came because Israel would not instantly agree to a Two State Solution with “Palestinian” elements who have the destruction of Israel as part of their Muslim Brotherhood-based Charter.
While the Middle East goes up in flames, women are raped en masse, slavery becomes part of IS consumerism, Christians are expelled or beheaded if they do not convert, the US seems to be transfixed by a few cabins, houses, garages or homes for Jews. Jews should not live in Judea of all places! Why? The UN originally called it ‘Judea’. ‘Palestine’ is just disinformation.
Let’s turn to Germany. In her new year message, Chancellor Merkel says that the biggest threat to Germany is the threat of Islamist terrorism. The German intelligence services have warned that Jihadi groups in Germany are being funded by Saudi Arabia, Qatar and Kuwait.
Does that shock us? Apparently it shocks President Obama. He has refused to use the term “Islamic terror”. Son of a Kenyan Muslim, he also had a Muslim step-father in Indonesia. “They (terrorists) have perverted and distorted and tried to claim the mantle of Islam for an excuse for basically barbarism and death,” he said. He says more Muslims are being killed by Muslims than Christians. That is true. They are in full jihad against each other.
Unless Europe takes stern and intelligent action, it should not expect the bloodshed to pass it by. We are living in an unusual period when there has not been major warfare with Islam. Since Islam’s inception in the seventh century, some 270 million lives have been lost by Islamic invasion. They were not national invasions but invasions driven by Islamic ideology to convert or kill.
islamic-battles-270-mill-dead-x
According to Robert Schuman, founder of the European Community, peace requires tolerance and the patience search for truth. President of Egypt al-Sisi told Egypt’s top clerics and scholars at Cairo’s Al-Azhar university that they must change their {political} ideology and bring the seventh-century religion of Islam up-to-date with realities. The ideology had become ‘hostile to the entire world.‘ He asked:
‘Is it conceivable that 1.6 billion Muslims would kill the world’s population of 7 billion, so they could live on their own?‘

Dr Bill Warner of the Center for the Study of Political Islam has tabulated 548 battles of Islamic armies in Europe or formerly Christian areas.
islamic-battles-1680-1700-x islamic-battles-1260-crusades-end-x

In contrast the Crusades had less than a score of battles in Syria, Israel and Egypt. The dynamic of this process can be seen in the short video Battles with Islam or the longer version.



Now it is abundantly clear why Donald Trump has selected Rex Tillerson, a former oil company executive — who knows how to negotiate without making enemies — as his new Secretary of State. It is also clear why the outgoing Obama administration and the disappointed Clinton supporters are seething for having lost the election.

17 December, 2014

Circus8: 2014 'Year of fooling the People' ends with Council's coup by press release!

Europe today is like a tennis club. Imagine you paid fees to a tennis club and that gave you right to elect the executive committee. All the membership agreed in a vote that the executive should be reduced in size and that it should no longer be composed exclusively of white, 60+, male, left-handed, millionaires. Then these same millionaires decided they would take absolutely no notice of the paying membership. They insisted unilaterally that the tennis club needed them even though everyone in the club paid equal fees and wanted change. Would you say it was democracy? The tennis club membership then took a vote of the whole membership. The executive committee refused to recognize the result of votes and referendums, not once but multiple times.
The year 2014 was declared the Year of the Citizen by the Commission. You might remember that 2013 was also declared the Year of the Citizen. No one asked the citizen in either case! The Eurocrats were not ashamed at a unilateral seizure of millions of euros of taxpayers’ money to pay a ‘citizen’s campaign‘. It brought them no success. According to the official report, it was ‘not effective‘ nor did it reach the ‘media or the citizens‘!
So what happened? Were these tricks of the Council and Commission sufficient to fool the people in the election ear for the European Parliament? Did it quieten objections to the political parties parachuting their favourites into the fat-paying Commission jobs?
The Juncker Commission wants to boost the economy by creating a 315 billion euro fund for loans to 'boost jobs and growth.' Will it work with an already devalued currency? How does it compare with the multi-TRILLION stimulus that OPEC, the oil cartel are giving to the world economy? Why is the Saudi oil minister Ali al-Naimi saying that he has convinced his fellow OPEC member States that oil supplies should manipulated together even if they have to bring the price down from well over 110 dollars a barrel to 20 dollars?
Have the euro crises and other distractions covered the politicians’ predominant moral turpitude? The latter arises where leaders fool the people on major issues while giving the impression from minor events that they are acting fairly and squarely.
What is European democracy‘s major problem? In contrast to our tennis club, there are no restrictions on candidates for the Commission. They can be black, yellow or white, over or under sixty years, they may be rich or poor and they may be right- or left-handed writers. All citizens can be possible candidates for the Commission. What candidates can’t be, according to the oath that all Commissioners take, is the following:
  • They can’t be active members of a political party;
  • They can’t be tied to an interest like a commercial company, a trade union or a consumer group.
  • They cannot seek or take instructions from national governments;
  • They must be independent like a judge in a Court of Law.
Governments believe they, against the treaty law, can give instructions to their Commissioners and others in closed door, secret meetings from which the public and press are excluded. Further, the governmental political parties completely ignored the treaty articles about how fair elections European Parliament elections should be run. They have yet yielded to treaty obligations for elections for organized civil society. These measures have been in the treaties since 1951.
The greatest political crimes are perpetrated when CLIQUES of ‘democratic representatives’ change the honest and just rules and allow the electors only to vote on minor matters. Thus they maintain power without proper supervision.
That is the disorder that the European Union is suffering from at the present.
Former French President Valery Giscard D’Estaing condemned the Council’s lack of respect for the Constitutional or Lisbon treaties he helped formulate. ‘There needs to be a more scrupulous respect of the treaties.‘ More than a decade ago it was agreed by all that the size of the European Commission was to be reduced to around a DOZEN people, max.
It was recommended by former members of the Commission. It was demanded by members of organized civil society. It was agreed by all in Convention on the draft treaty. Former European Commission President Jacques Delors said that European Commission must be not exceed about a dozen members plus the president and foreign affairs representative.
It was not only demanded a decade ago. It had been demanded for decades previously from the first expansion of the European Communities in 1973. A small independent Commission with four other independent OPEN institutions are the basis of the supranational system that brought peace to Europe.
So why does the Juncker Commission have 28 Commissioners?
Its size and composition is the BIGGEST democratic issue facing the European public. It is the key institution in the Community method. The Commission is not the politicians’ plaything. Democracy belongs to all the people, all the time.
Reducing its size to a small number of totally independent, qualified personalities has long been the most controversial of EU reforms. The public are sick and tired of party nepotism. Political party pals or defeated/ retired/ expendable politicians are parachuted into high-paying Brussels jobs. Why doesn’t Europe have a sleek group of highly respected impartial and independent Commissioners?
There is a simple answer.
The politicians have fooled the public. Have they fooled all the public? Have they fooled it all the time?
What are the implications of the European Council’s Decree to dismantle Europe’s Community system, made furtively over a fine meal at its 22 May 2013 closed-door meeting?
  • It denies qualified citizens their democratic rights to become Commissioners (Art 10 TEU).
  • It destroys any democratic purpose for voting in the upcoming European elections.
  • It denies the vast majority of European citizens a voice in  Europe’s governance system.
  • It  changes the Community Method into a party political Cartel, run by who knows who. This raises the danger that it might be captured by European of international cartels who act against the citizen’s rights and freedoms.
  • It reverses all the treaties that say the European Commission should be totally impartial and that its members must not be politicians’ cronies or take instructions from any government, big or small.
Oh! perhaps you did not even hear or read about the Council’s Decree on 22 May 2013. You did NOT miss the debate! The EU’s 27 political leaders did not permit one. Democracy was changed without any public consultation.  The 27 politicians present did not expect you to debate it after they made their decision as Super-Citizens. They acted just like an economic Cartel acts on the market, they secretly control supply and demand of democracy! Like any Cartel it thrives on secrecy.
You did not read about it. It was not mentioned in the final communique of 27 Heads of Government and two of the EU’s many presidents.  You did not hear about it. European Council President van Rompuy and Commission President Barroso did not speak about it at their press conference. Neither did German Chancellor Merkel, nor French President Hollande, nor the British, in the person of Mr Cameron, who say they defend democracy.
I heard only the Irish Taoiseach make the briefest of statements about it at his press conference and quickly rushed on to other matters. The politicians purposely engineered the Agenda and Agenda Notes so that this major decision of the meeting would not appear in the Conclusions!
The control of the Commission by any group of political parties or States means that the Citizen can say Goodbye to impartial EU government. This key supranational institution is designed to safeguard freedom, fight financial fraud and corruption. It is the world’s first institution able to take on international Cartels of companies, international finance or workers and bring them to Court. Cartels involve, for example, business executives from different companies colluding in secret to fix prices and deny competition in the market. The consumer is ripped off.
Cartels may range from many small manufacturers that ‘fix’ prices of bathroom fittings to major internet operators who misuse monopoly powers to energy cartels like OPEC and its subsidiaries that raise the price of oil from a free market value of 5 to 10 dollars a barrel as in 1999 to 147 dollars recently, despite the huge Iraqi and other new fields coming on stream.  Raising of prices has had a depressing multi-trillion euro effect on the economy and employment. Dropping oil prices has destroyed industries (especially alternative energies to oil).
Now the cartel led by Saudi Arabia is dropping oil prices to record lows approaching 50 dollars and aiming lower. It does it simply by opening up the oil taps. A free market does not exist. (In 1999 when the oil price fell to below ten dollars, it exposed what was really a free market price.) When prices rose to 147 dollars a barrel, OPEC cartel was extracting about ten per cent of global GNP! Wow! That really is global blackmail!
How much does the oil/gas cartel filch from the pockets of European citizens by manipulating the price? When the price dropped just 20% to 83 dollars, the world economy received a stimulus package of 1.1 trillion dollars! With a price now fallen by more than 50%, the stimulus is in trillions not a few hundred billions. These enormous sums of money show the power of oil-drug Cartel to blackmail Western societies. Most of what the West gains now is what OPEC blood-sucks from industrialized economies by posting artificially high prices most of the time.
Why did the Saudis now purposefully lower prices? Don’t they lose profits? Yes. But they gain something far more important. A low price completely wipes out the competition of higher cost shale oil and gas. It makes North Sea oil unprofitable. Israel has also uncovered vast oil and gas reserves in the sea between it and Cyprus. The Saudis are so keen on the low price of oil at the moment that they are willing — perhaps for the first time in history — to sell their Saudi oil to Israel!
Why are the Arab oil-producers opening the oil spigots? (The Iranians are against this strategy. They need the money for their Iranian nuclear programme.) The Saudis and Arab oil-producers need to keep the West addicted to oil. The cartel action decimates alternative energy projects. It thus ensures longer lasting oil-dependence when they can eventually raise the oil price in the future. With a protracted period of low prices, financiers will refuse to fund any project that challenges Saudi oil and Gulf gas. Strategically, it wrecks their major competitor– Russia. Russia produces more oil than Saudi Arabia and its whole economy depends on it, including its political stability. Oil and gas are major levers in the global ideological struggle between Islam and Judeo-Christian civilization.
The effect of low oil prices will give a huge boost to the European economy. If Europe had a proper Community style government with an Energy Community as Schuman and the founding fathers recommended, it would have already been enjoying massive benefits for several decades. That is why a non-party political, totally independent European Commission is vitally important. Its election method, composition, and the means to dismiss it for incompetence and corruption concern every citizen and voter. In dishonestly attempting to seize control of it, politicians, themselves, acting in a political Cartel of major parties and excluding their many critics, have declared war on the citizen’s rights and liberties. They are not trusted. Opinion polls show record low trust ratings of  politicians, amid economic and financial corruption and the self-serving construction of the euro.
Party cartel control obfuscates democracy. No change of policy occurs. Politicians can milk the taxpayer’s golden cow. Politicians have selected themselves as Super-Citizens.
The party machines now illegally select the Commission from among their cronies. President van Rompuy himself declared that the ‘governments’ act more like party coalitions dividing up the Commission cake in secret. Instead of a Gaullist Europe it has become Europe ‘a la carte des parties‘. And the parties are now disdained by the European public. The electorate refuses to vote!
The crucial and unanswered question is: Who controls the party machines, pays them subsidies and in backdoor deals sets their policy agenda? Control of the Commission by national government representatives makes backdoor deals the rule to the detriment of weak and small States. Making only politicians eligible as Commissioners as a class of Super-Citizens is contrary to elementary Human Rights of 500 million citizens.
How did this abuse arise?
It is not who votes who rules the government. It is who writes the rules about the voting. The EU has 28 self-serving voting systems not ONE Statute as required by the treaties. That has been in the treaties since 1951 — without governments implementing it. First governments refused to have any election at all, until Parliament took them to Court. Instead of implementing the article, each EU government  fixes the voting system to bar opponents, not to help them.
The governments did the same sort of thing for the Commission which was originally a politician-free zone. Now the Council wishes to hold its thumb on the scales of the ‘honest-broker’ system, the Commission. It makes it dishonestly partisan. It wants to bias the magistrates. The European Council is making clear that no matter what people think, nor how they vote, nor how they protest, a small clique of politicians will decide the result. A Cartel of politicians controls the market of democracy.
Crisis will lead to further crisis. Politicians individually and collectively have failed their ‘stress tests’. MEPs seem quite willing to contort legislation when offered bribes by investigative reporters. Who knows what they do with powerful lobbyists and multinationals?  This is the reason that Schuman and the Founding Fathers insisted that the Council should hold open sessions, something it has refused to do. Why? What is so secret about discussing how citizens’ democracy should work?
The Cartel welcomed crony governments of the left, right and centre into the euro. The crony system does not seek to reform. It admits governments that everyone knew to be corrupt and who cooked the statistics. Then when the inevitable problems arose, they created new money institutions — not subject to the European Court of Justice — that involve handouts five or seven times the amount of money in the entire EU budget!
These same politicians feel they are above the law such as the European Court of Justice. It is their right to deny referendums on treaties, to ignore referendums that are negative, to close down national radio and television as they did in Greece — without even a parliamentary vote or legal power. The free press as the Fourth Estate is an enemy of cronyism.
Do you wish to place your future in the hands of a Politburo with powers without real democratic responsibility? When did it happen?
This latest antidemocratic and corrupt decision on voting was made as the Heads of  Government gathered at their lunch table on Wednesday 22 May 2013. It was a very short European Council, even though it dealt with tax fraud and energy — Europe’s major problem. The unannounced third topic was  to change European democracy — forever!
There was no public debate. Nor did any leader want to start one tomorrow with the public or the press.
The European Council acted like any tinpot dictatorship under Franco, Salazar, Stalin or Hitler,  under which many States formerly suffered . When everyone’s eyes were busy elsewhere it issued a fait accompli, a five- sentence press release!
Now we have democratic collapse by Press Release. This is a step worse than Democratic Abuse by Treaty that populations have thrown out by referendums!
Here is the release:
P R E S S
Dirk De Backer – Spokesperson of the President
Brussels, 22 May 2013
EUCO 119/13
PRESSE 207
The European Council decides on the number of members of the European Commission
The European Council adopted today a decision on the composition of the European Commission. This decision provides that the Commission will continue to consist of a number of members equal to the number of Member States. This number also includes the Commission President and the High Representative of the European Union for Foreign Affairs and Security Policy/Vice President of the Commission (176/12).
The decision, which in effect maintains the current practice, will apply from 1 November 2014.
In view of its effect on the functioning of the Commission, the European Council will review this decision well in advance of the appointment of the first Commission following the date of accession of the 30th Member State or the appointment of the Commission succeeding that due to take up its duties on 1 November 2014, whichever is earlier.
Background
The Lisbon Treaty provided that as of 1 November 2014 the Commission would consist of a number of members corresponding to two thirds of the number of Member States, unless the European Council unanimously decided otherwise.
Today’s decision puts into effect the political agreement reached at the European Council meetings of 11-12 December 2008 (17271/1/08) and 18-19 June 2009 (11225/2/09) where the heads of state or government noted the concerns of the Irish people with respect to the Lisbon Treaty and agreed to continue the principle of one Commissioner per Member State.
Like a typically ineffective dictatorship, this press release provides a link to the key document that authorizes this overturning of the ‘inconvenient’ Lisbon Treaty articles. Check 176/12 that is the Decision of the European Council. It is
  • a document whose drafting dates from 2012
  • it is undated;
  • it is unsigned !!
  • it makes no reference to any democratic authority, such as the European people’s voice, referendums, the European Parliament, national parliaments, the Economic and Social Committee or any other Consultative Committee. It refers to no economic debate except the bribe made on the second Irish referendum. Nor does it explain why under European Council ‘Democracy’ the first was invalid and a second was called for. Everywhere else in the world a No means No.
Where the document says ‘Decision of the European Council’ it really means DECREE. The Tsarist Russians would call it an Ukase. It has no democratic base, authority or legitimacy.
It is a bluff because the European Council is trying to pass off as EU law what amounts to a secret, unilateral fait accompli.
In other words, the European Council wants to change the democratic system of the original treaties by a Press Release and by an UNSIGNED, IRRELEVANT DRAFT document. Furthermore its authority is a Spokesman, a paid official not a democratically elected representative.
This press release also puts a deceitful spin on history. In December 2008, the Lisbon Treaty was not active.
It was dead! In fact it was twice dead. The European Council  declared it was alive! This is what the European Council acting as a Politburo declared:
The European Council re-affirms that the Treaty of Lisbon is considered necessary in order to help the enlarged Union to function more efficiently, more democratically and more effectively including in international affairs. With a view to enabling the Treaty to enter into force by the end of 2009, the European Council, while respecting the aims and objectives of the Treaties, has defined the following path.
On the composition of the Commission, the European Council recalls that the Treaties currently in force require that the number of Commissioners be reduced in 2009. The European Council agrees that provided the Treaty of Lisbon enters into force, a decision will be taken, in accordance with the necessary legal procedures, to the effect that the Commission shall continue to include one national of each Member State.
The treaty proposal had just been rejected by the Irish electorate in a referendum. A number of other countries had also rejected the Lisbon Treaty in its former appearance as the Constitutional Treaty — France (55%) and the Netherlands (62%). The British, Czechs, Irish, Polish and the Danish who had been promised referendums did not have one as the politicians expected even more crushing rejections.
The Cartel politicians decided to impose the Treaty by autocratic force. The Constitutional Treaty was shorn of a few clauses. Important ones? Judge for yourself. They deleted the article providing for a European flag and a European Anthem. They are no longer official. Hadn’t you noticed? The Commission’s Berlaymont Building and all other EU buildings are surrounded by DOZENS of European flags!
The Constitutional Treaty was rewritten as amendments to the Treaty of the European Economic Community. (The Rome Treaty of Euratom, the non-proliferation treaty, was not affected.) As a list of amendments, it was incomprehensible as a functioning system. Nevertheless, some Parliaments such as Hungary passed it even before the parliamentarians had received the consolidated text! The European Parliament to its great shame refused even to publish the complete text!
Then the French changed their Constitution so that the French government could refuse another referendum. The other governments refused to hold referendums again. Except the Irish! They voted. They rejected it. They thought the Lisbon Treaty rubbish or dangerous. They were told to vote again and this time Yes. If they did they could retain an Irish Commissioner (to guard Irish interests).  They would be more than OK. They would also get ample EU money to boost the economy. Tell that to them now!
The Lisbon Treaty was not agreed by many peoples in the Member States, either because governments refused to recognize the referendums, or allow one to take place or because they even changed the Constitution to refuse people the right to reject the Lisbon Treaty, as they had the Constitutional Treaty (with which it was practically identical, except for a flag and a song!).
This is the chronology of the anti-democratic slide to Politburo takeover:
1951 Treaty of Paris with 9 Commissioners, eight nominated by Member States and one selected by these eight without recourse to State nomination. This Commissioner is mandated by the others. The Community’s major principle was to oppose to any form of dangerous cartel and restive practice. Hence the Commission must be independent, non-ideological,  impartial and act as ‘economic magistrates’ to ensure rules are obeyed for the expansion of production and lowering of prices in a single market.
1957 Treaties of Rome EEC with 9 Commissioners; Euratom with 5 Commissioners from the six Member States. The treaty of Paris specified that numbers may be reduced. It did not permit an increased number for these States. Europe’s three Communities show that the Commission must be independent of national governments.  Instead, following de Gaulle’s war on the Community,  governments increasingly parachuted their own political representatives rather than selecting impartial Europeans.
At the turn of the century abuse was rife. The public objected to the constant parachuting of politicians into the Commission. Politicians were dominating and States offering independent candidates were fewer and rarer. Instead of a small independent group the Commission became bloated with overpaid political cronies.
An Amsterdam Treaty protocol and the 2000 Nice Treaty (article 213) then limited all States to one Commissioner only, forgetting conveniently that the treaties say nowhere that a State has a right to a Commissioner. (The treaties say the opposite — which is why when there were six Member States, the Euratom Community had only five Commissioners.) The Commission was becoming a club of wall-to-wall political cronies. With the major enlargement of 2004, something had to be done.
The Convention presided by former French President Giscard d’Estaing drafted a Constitutional treaty where the Commission had to be reduced in number. This made clear that the Commission was not a dumping ground for politicians, one for each State.
With the enlargement after the fall of the Berlin Wall, a Protocol to the Amsterdam treaty specified that the number of Commissioners should not exceed the number of Member States.
In 2008 the existing treaty of Nice required that the Commission must be reduced in numbers to avoid overstaffing and turning it into an international secretariat.
The Irish people were refused a referendum on the Constitutional Treaty in 2005 or 6. They rejected the Lisbon Treaty in June 2008 by 53.4 to 46.6%. In October 2009 the Irish were humiliatingly told to think again in a second referendum.
If you check the 2008 European Council Communique quoted by the Spokesman, you will see that the European Council admits it has no democratically solid basis for the Lisbon Treaty. Therefore no legally sound basis exists  either (a) to accept the Lisbon Treaty draft against the clearly stated wish of the people and  (b) to change a difficult article in the Treaty that the politicians had forced through parliaments by block votes.
The decision to accept the treaty (to be called the Lisbon Treaty) that had been rejected by Irish voters was made in the middle of the night. None of the CITIZENS of 27 nation States were consulted. The Communique admits that it was a political decision, decided by politicians. It does not say it was for their own benefit and not the public’s but that was obvious.
The big problem was Ireland. Irish voters rejected the Lisbon Treaty. Under any normal democracy that would have dumped the Treaty in the bin. The European Council meeting after midnight also agreed to bribe the Irish electorate who had rejected the Lisbon Treaty as undemocratic. They said that Ireland must vote again— itself an extraordinary affront to democratic procedure. The bribe consisted of overturning the Lisbon Treaty’s stipulations that the Commission should not be European and composed of a small number of Commissioners. It would become international and composed of National Commissioners and by implication give party politicians in government the right to chose one of their cronies to be a Commissioner. No article of the Lisbon, constitutional or any other treaty gives governments powers to invest cronies with this office.
There are NO SUPER-Citizens in the EU who have preferences and exclude normal citizens. The Council's document supposedly
  • supporting their ability to nominate national representatives (against treaty law) and
  • only from political parties of the socialist, liberal and 'Christian democratic' persuasion lacks any democratic basis. (It goes against treaty law and a discrimination against the CITIZENS and their human rights to participate).
It is a fraud. It has no democratic approval or authority. It is merely a self-serving splinter for political fraudsters.
http://register.consilium.europa.eu/pdf/en/12/st00/st00176.en12.pdf
This occurred after all in the first Year of the Citizen, one of two consecutive ones decreed by the Party Machines. Do you expect the party Machines to open up a debate with the Citizen about such a trivial matter as Democracy? This new decree says: 'European governance is the private business of government 'fixers' and parties! Citizens do not stick your noses in it!'
In short it says that the European Commission can remain a dumping ground of national politicians -- in complete violation of treaty law. Cronyism is to become the new law.
The British who say the EU must be reformed failed their electorate. They chose as their nominee for the Commission, a party politician who was formerly called a lobbyist. He was parachuted into Brussels with a high salary but no public support or knowledge. No matter what the public think of him or the Prime Minister’s choice, this is an egregious example of corrupt cronyism. The treaties exclude politicians from applying for the post of Commissioner as they say that Commissioners should
‘be chosen on the grounds of their general competence and European commitment from persons whose independence is beyond doubt.’
I will avoid saying anything about the general competence of politicians. However there are many, many people in Europe, in European NGOs, in the offices of the Ombudsmen, in Law, Business, workers’ and Human Rights who have a great deal more competence than many politicians show. They may also have independence, that is, the ability to be impartial, unprejudiced and non-ideological.
Politicians are automatically excluded from any candidature because a political party tends to be ideological. That is, it has preferences of one side in society over another. Such people cannot be considered ‘honest-brokers.’
It is a designation that thumbs its nose at the public.
The Governments continue their practice of a bloated Byzantine bureaucracy. This was initiated by de Gaulle and his anti-Community henchmen. Its aim? to turn  the Commission into a political secretariat.
The Community system is now being reshaped into a Dictatorship, not of the Proletariat, but of the Party Machines. The same party machines have failed to attract even a half of the electorate. New anti-cartel parties are springing up with large followings everywhere.
It is not only the EU that is reached a crisis of democracy, but the national governments too.

20 March, 2014

Ukraine2: Stupid Europeans! Ukraine and Syria are part of Global Blackmail against you!


Ukraine and Syria are part of the global battle in which Europe is the target, victim and the source of blackmail revenue. Europeans have been behaving stupidly since the 1950s, when the Founding Fathers of the European Communities warned them of the dangers. They ignored the warnings.

What would you call it if you were getting oil at a dollar-and-a-half a barrel and the supplier was making such a profit from it they were living the life of Reilly? You might call it free trade. Both parties are happy.

What do you call it when the supplier raises the price FOUR times and also says that you have to change your foreign policy if you are to get anything at all?

That is blackmail. Stupid Europeans have been grinding their teeth and paying through the nose ever since the 1973 Oil Weapon was deployed.

It only works if the buyer --the Europeans -- think that they are incapable of producing energy themselves and must rely on suppliers who turn out to be a cartel or multiple cartels. With all their science and technology can't Europeans produce energy and electricity and maintain their independence from financial and political exploitation? Who is persuading them to stay on the oil drug? Maybe we should look where oil drug profits are going.

Yesterday it was the Middle East -- where Europe got entangled in Arab wars and hatreds. Today Europe is not free from that bowl of spiders. It has also got involved with the Russian energy cartel which works on the same principles of extortion. Now they are competing with each other. The Joker in the power game is shi'ite Iran which could try to block the Mid-East transport routes for oil and gas out of the Gulf. It can also play nuclear blackmail among the neighbouring States. Iran has been fighting in Syria. Qatar, a mere pimple on the east of Saudi Arabia, has the largest Liquid Natural Gas (LNG) operation and one of the biggest gas fields in the world. How will it get its gas delivered if the Strait of Hormuz is blocked? Saudi Arabia and other Gulf States have broken off diplomatic relations with Qatar over its 7.5 billion dollar support for the Muslim Brotherhood in Egypt and refuse to allow it a pipeline across to the Mediterranean.

What plans do the Saudis have if the Gulf is blocked? What if there is again trouble in Egypt and Suez? The Saudis too would like a pipeline to the Mediterranean. But what happens as these players approach the Mediterranean's eastern coast? They are met first with Jordan, run by the Hashemite family expelled from Mecca, an unstable State carved out of the Jewish Homeland Mandate territory, composed of former PLO refugees and now Syrians. Then the pipeline must find a port -- either (horrors!)  in Syria which was run by the pseudo shi'ite Alawite clan as a secular dictatorship or -- horror of horrors! --  Israel.
For all the players the competition is about who can leach the most blood from the Europeans before the whole world goes down the tubes.

Europe turned to Russian gas and oil as an alternative when it was still the Soviet Union. Now Russia, troubled by sunni terrorism at home has its own 'understanding' with Iran and nuclear exports.
Crimea is a vital warm-water naval base for Russia. (Its other ports are frozen in winter.) It gives it access to Syria. It is is also vital for control of the Mediterranean. In the early 1970s NATO was worried that the Mediterranean was becoming a Soviet lake. The USSR was the main arms supplier to the most populous Arab country there, Egypt. It also controlled the Suez canal. The Soviets had bases along the North Africa coast and in Syria.

Today Egypt has washed its hands of Obama's USA (that supported the Muslim Brotherhood and undermined Mubarek).  It is now getting arms supplies from Russia. The Saudis, who fiercely oppose the Muslim Brotherhood's way to establish Islamic global dominance, are changing their long-established policy towards USA. They are pumping tens of billions of dollars into the anti-Muslim Brotherhood Egyptian regime. For a century a religio-industrial compact allowed the USA, the world's prime capitalist, industrial power and a desert-bound religious sect in Saudi Arabia to dominate world affairs together. The world is now in flux.

In 1973 Europeans were getting oil at under two dollars a barrel from a wide variety of suppliers throughout the Middle East and North Africa. When Arab armies attacked Israel while the nation was fasting on the Yom Kippur holy day, the Arab suppliers, formed their own cartel. With their Oil Weapon, they placed a total embargo on Europe and the USA. They demanded that the West cease from henceforth to support Israel. They declared that any country that did not change its foreign policy would get zero oil. President Nixon considered declaring a state of war.

Thanks to the European Communities each with an energy component (Coal and Steel, Euratom and the 'Common Market') Europe was able to survive. It did not have a real common foreign policy nor did it create an energy policy (we still don't have one!). In 1959 the three Communities had formed an 'Inter-executive Group' to coordinate national energy policy. But General de Gaulle not only froze such initiatives he reversed France's Middle East policy for the sake of cheap Arab oil. That only encouraged the setup for blackmail.

In 1973 Europe was able, however, to buy oil on foreign markets and swap it between Member States in the nascent Single Market to help them survive. Denmark and Holland (who saw no reason not to support the Jewish State of Israel) imported mainly from the Middle East.  Faced with a total cut-off, they were in dire straits. Oil was shared with the other EC countries who imported from elsewhere.

In December 1973 the European Summit in Copenhagen was disrupted by an uninvited delegation of Arab oil exporters. They were determined to see that their Oil Weapon had maximum effect and no 'European solution' that favoured Israel and democracy in the Middle East was undertaken.
The effect of the oil embargo was devastating on the economies. Factories closed or went on short time. Motorways were bare of cars and vehicles. There was mass unemployment.

The Arab Oil Exporters quadrupled the price again in 1979! This was the Second Oil Shock. It exercised the ratchet mechanism to boost prices, not untypical of all cartels. The Economist opined on 22 December 1979:
"OPEC's interests are increasingly inimical to those of the west. ... Their underlying interests will push them into actions that harm the rest of the world. ... Unrest in the Middle East often takes the form of austere reformist Islam, yet further reducing production. .. OPEC's existence, as a device for producing a floor (for minimum prices) under past gains, while leaving 'free market' forces which are nothing of the kind to push prices further upwards, does indeed reflect the interests of its members. .. When people talk or write about OPEC, in this materialist age, they turn first to the tools of economics. But politics is also a necessary part of the solution to the problem. The west's governments have to muster political weapons both to achieve their aims at home and to constrain OPEC's power abroad."
Cartels benefit from time to time when prices fall. Why? They wipe out any alternative supplier. Energy infrastructure takes time and investment. When oil prices crash, these programmes are binned. As the same article in the Economist prescribed, Europe needs to pass on the full price of oil to the consumer. Even more, it needs to maintain high prices for the long-term, by tariffs if necessary, so that conservation will become a way of life and native energy-making inside Europe is common.

That requires a fully-fledged Energy Community with democratic institutions and powers. How can this be done? It could start by placing solar panels on all buildings, public and private. Europe needs a common, intelligent grid. It could stop using tarmac for roads and replace them with safe, solar panels made out of reinforced glass. What's glass made of? Sand and we have plenty of that! Europe could thus become a major exporter of electricity to the world! I am sure our scientists can come up with many technologies if given half a chance. Freedom of thought is the great asset of European culture. Other nations with lots of sand seem in a cultural timewarp.

An Energy Community as a new SUPRANATIONAL institution would help resolve the dilemma over Ukraine. About 16 percent of Europe's gas comes via Ukraine. It could immediately become a member. But it requires major revision of the present EU to make it democratic according to the treaties.

It took nearly two decades for the oil price to fall to anywhere near 'free market' levels. That was due to squabble among the Arab OPEC members and world competition but little effort was made by Europeans to gain energy independence to avoid future blackmail. The Shah of Iran one of the most enthusiastic proponents for higher oil prices was replaced in 1979-80 by the shi'ite leader ayatollah Ruhollah Khomeini. Iran promptly got into a war with secularist Iraq. The sunnis were not to happy about the revolutionary terrorism of the shi'ites but both were in agreement of squeezing the Western lemon till the pips cracked.

So what did stupid Europe get? More blackmail by the cartel! By 1999 oil prices had fallen to around 9 dollars a barrel. The Economist magazine with its extensive intelligence and expertise forecast a long-term price of FIVE dollars a barrel. It was not alone. Western oil companies like BP and Shell said the same thing. But they were no longer in control of the game, or the taps. The Arab oil suppliers had nationalized the oil supplies, so many western companies were merely helpers and exporters of this Arab oil. The guys who could turn the taps off at will were at OPEC. When prices rose, they cut off supplies so that oil prices stayed high and rose higher. The others like the subservient western oil companies were left with their own cartels on downstream operations and financial operations. The oil-producers recycled their profits using short-term financial instruments like derivatives or bonds. At compound interest the petro-profits must now amount to a financial bubble multiple times the size of the real economy. (The US Treasury long ago identified five cartels operating in the oil industry at various chokepoints. Today we seem to have more.)

So what happened with the new century? The price tripled immediately in 2000. It then took a rocket trajectory upwards. This was the THIRD oil shock. Oil went from nine dollars to 147 dollars a barrel -- an increase 1633 per cent! At that price the oil exporter were extracting around 10 percent or more of world GDP for a product worth a couple of dollars in a free market. The International Energy Agency shows this THIRD oil shock is the most serious one. Oil prices have never been higher in real terms since the modern oil industry began in 1859. No wonder the EU is in the economic doldrums.

It is not only this generation of politicians that are acting stupidly. Immediately after the initiation of the Community system, politicians went into a nationalist relapse. International cartels pick off nation States like minnows! By not acting for decades Europeans have compound interest on their stupidity. Europe is still sleep-walking in a dreamland with its plans for 2020 and 2030.

Today  the implications of this ignorance has moved from amber Stupid to Red DANGER.

The Russian take-over and military invasion of Crimea is part of Russia's strategy to survive its own uncertain future. Russians are a highly educated people. They are capable of great achievements. But hindered by their own stupid ideologies, from atheistic Marxism to the present Putinism, they have been unable to compete with the West. Dimitry Medvedev wanted to turn Russia into a high tech society -- but that requires a free society with open democracy. Instead their economy and all political power is based on the export of gas and oil.

Putin knows the implications full well. He is an expert in oil and gas prices. His whole policy is based on these strategic raw materials. Properly applied these raw materials can lever Russia back to great power status after the collapse of the Soviet Union. He called it the 'greatest geopolitical catastrophe' of the last century. It was a geopolitical disaster, not a communist one. Russia was a centre of a world ideology -- communism. It gave the USSR world clout. Putin was the clever KGB officer that thought up the Plan B to restore Russia's fortunes. He wants to control not only Crimea, but access of non-Russian oil and gas that drives the world economy.

The new key for Russia as a world power is not ideology but energy. Today the EU imports more than half its energy with a third of its gas and oil coming from Russia. Some countries are 90 percent dependent on Russia. Germany is a main customer.

As a KGB officer in Germany he was well aware of Europe's dependency on imported oil and gas. In his time of secret service office, the 1980s, a major trans-Atlantic row broke out between the USA and Europe about financing Russian pipelines. It nearly tore NATO apart. Mrs Thatcher joined with her French and German colleagues and opposed Ronald Reagan. The Soviet pipeline row became one of the biggest political crises of the West since WW2. (See my book, Russia and the danger for the European Union, pp88ff second edition, published in 2000 and first edition 1995. It proposes a pan-European Energy Community that would drive the democratisation of both the European Community members and the Former Soviet Union and its former satellite States.)

Why did Putin act now? He is in a race against time. Previously Russia had pledged its great support for the international rule of law. Now he has permanently lost any claim to that. The population of Crimea may be pro-Russian. There may be unsavoury characters in Kyiv. Khrushchev, acting as the Dictator of the Proletariat, may have acted foolishly to declare Crimea Ukrainian. But to move in Russian troops, to take-over all the communications, to force a referendum without a debate and then sign it off as a legal act in the Kremlin won him the condemnation of all other countries as a patent lack of legitimacy. Putin retorted that NATO had also broken its promises not to expand. The colour of the Russian policy is clear from the fact that it took over a gas plant outside the area of Crimea.

Acting like a bandit State is a severe loss to Russia's prestige -- after the Sochi Olympic games that won it acclaim. Why did he do it? He faced open hostility with the Saudis over the outcome in Syria, even threats of terrorism at Sochi. Instead Putin moved his armed forces to protect Sochi from terrorism. It turned out (coincidently?) to be very handy for taking over Crimea.

The rapid and smooth turn of events that caught the west by surprise indicate strategic planning. Without the exorbitant price that Europeans are paying for its gas, Russian economy would crash, its people starve. The Russian State and its budget depends on the viability of the huge energy monopoly, Gazprom. For President Vladmir Putin it is now a race against time to save his country. Two factors threaten Russia's future: price and the bust-up of a cartel operation.

Russia fixed its gas price in parallel with the oil market. Why? This was the highest price Russia could get. When the Netherlands was under total oil embargo, it found it had huge gas deposits. So taking a leaf from OPEC, it set the price as high as it could to be able to survive. Russia merely copied this ploy, although there is no good reason why European consumers should support another cartel dictating prices.

There is no real free market in oil and gas. It is run by numerous cartels. This has been going on for more than a century. In the 1950's the US Treasury identified FIVE cartels that worked in conjunction to control high prices to the customers. They ranged from exploration cartel, to down stream retailing and we can now add a financial cartel that recycles vast amounts of oil and gas profits through banks and derivatives that are multiple size of the 'real economy'. You can control the price by stopping research, drilling, turning off the oil taps, creating refining bottlenecks or applying the massive oil profits to control the economy. Some analysts estimate that Goldman-Sachs boosted the price of oil by 30 dollars a barrel before the 2008 crash.

Russia's gas price is now threatened by shale gas. The USA is producing massive quantities and this has hugely cut price of gas. If Europe produces its own gas in such quantities in a free market or imports gas from the USA -- bang goes the Russian-based gas cartel. Today European industries pay more than twice as much for electricity as the USA, and pay four times the price for gas, according to BusinessEurope, the companies lobby group! That is the measure of a cartel vampire.

US President Obama wanted to declare red lines over the dubious origin of poison-gas weapons in Syria. However Putin took his 'smart pills' and made Obama and the State Department with its close links to Saudi oil look stupid. The greatest scandal is religious persecution and ethnicide that is happening by the invaders. Syria used to have vibrant Christian communities since the time of Christ. The Jews, who were there even longer, preserving precious manuscripts over many centuries, have now disappeared.

Meanwhile the massacres of Christians in Syria go unreported by the West. Why is the media muted? The destabilization of all countries in the eastern Mediterranean is only part of a global power game. The revolutionary Islamists who want to 'free Syria' behead Christians and those who are unable to pay the ransom after kidnapping. Christians who don't convert or agree to become dhimmis (subject peoples) and pay the dhimmi taxes are treated in the same way.

The West's leaders are numbed into silence at Islamist atrocities by decades of blackmail. They need to start taking anti-stupid pills.