This is an excellent article on an event of global importance that has probably not been mentioned in the US "mainstream media," having the motto "All the news fit to print ...if permited by Washington." The only problem with this article is a large number of imaginative terminologies, which I translate as follows: Washington consensus = "international financial system"; vengeful Empire of Chaos = US foreign policy; the epitome of financial speculation = American vulture funds; Masters of the Universe = US financial speculation, vulture funds and hegemony; casino capitalism speculation "model" = US capitalism; Panopticon = armor and weapons; neoliberalism = leading to global totalitarianism; hegemonic Masters of the Universe gang = US and its European vassals

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OpEdNews Op Eds 7/15/2014 at 23:27:06

BRICS against Washington consensus

By Pepe Escobar (about the author)     Permalink

                                                                                       Headlined to H3 7/15/14

opednews.com

Cross-posted from Asia Times

BRICS establish $100 Billion Development Bank
to cut out Western dominance (image by YouTube)

The headline news is that this Tuesday in Fortaleza, northeast Brazil, the BRICS group of emerging powers (Brazil, Russia, India, China, South Africa) fights the (Neoliberal) World (Dis)Order via a new development bank and a reserve fund set up to offset financial crises.

The devil, of course, is in the details of how they'll do it.

It's been a long and winding road since Yekaterinburg in 2009, at their first summit, up to the BRICS's long-awaited counterpunch against the Bretton Woods consensus -- the IMF and the World Bank -- as well as the Japan-dominated (but largely responding to US priorities) Asian Development Bank (ADB).

The BRICS Development Bank -- with an initial US$50 billion in capital -- will be not only BRICS-oriented, but invest in infrastructure projects and sustainable development on a global scale. The model is the Brazilian BNDES, which supports Brazilian companies investing across Latin America. In a few years, it will reach a financing capacity of up to $350 billion. With extra funding especially from Beijing and Moscow, the new institution could leave the World Bank in the dust. Compare access to real capital savings to US government's printed green paper with no collateral.

And then there's the agreement establishing a $100 billion pool of reserve currencies - the Contingent Reserve Arrangement (CRA), described by Russian Finance Minister Anton Siluanov as "a kind of mini-IMF." That's a non-Washington consensus mechanism to counterpunch capital flight. For the pool, China will contribute with $41 billion, Brazil, India and Russia with $18 billion each, and South Africa with $5 billion.

The development bank should be headquartered in Shanghai -- although Mumbai has forcefully tried to make its case (for an Indian take on the BRICS strategy, see here)

Way beyond economy and finance, this is essentially about geopolitics -- as in emerging powers offering an alternative to the failed Washington consensus. Or, as consensus apologists say, the BRICS may be able to "alleviate challenges" they face from the "international financial system." The strategy also happens to be one of the key nodes of the progressively solidified China-Russia alliance, recently featured via the gas "deal of the century" and at the St. Petersburg economic forum.

Let's play geopolitical ball

Just as Brazil managed, against plenty of odds, to stage an unforgettable World Cup -- the melting of the national team notwithstanding -- Vladimir Putin and Xi Xinping now come to the neighborhood to play top class geopolitical ball.

The Kremlin views the bilateral relation with Brasilia as highly strategic. Putin not only watched the World Cup final in Rio; apart from Brazilian President Dilma Rousseff, he also met German chancellor Angela Merkel (they discussed Ukraine in detail). Yet arguably the key member of Putin's traveling party is Elvira Nabiulin, president of Russia's Central Bank; she is pressing in South America the concept that all negotiations with the BRICS should bypass the US dollar. Emphasis the blogger.

Putin's extremely powerful, symbolic meeting with Fidel Castro in Havana, as well as writing off $36 billion in Cuban debt could not have had a more meaningful impact all across Latin America. Compare it with the perennial embargo imposed by a vengeful Empire of Chaos.

In South America, Putin is meeting not only with Uruguay's President Pepe Mujica -- discussing, among other items, the construction of a deepwater port -- but also with Venezuela's Nicolas Maduro and Bolivia's Evo Morales.

Xi Jinping is also on tour, visiting, apart from Brazil, Argentina, Cuba and Venezuela. What Beijing is saying (and doing) complements Moscow; Latin America is viewed as highly strategic. That should translate into more Chinese investment and increased South-South integration.

This Russia-China commercial/diplomatic offensive fits the concerted push towards a multipolar world -- side by side with political/economic South American leaders. Argentina is a sterling example. While Buenos Aires, already mired in recession, fights American vulture funds -- the epitome of financial speculation -- in New York courthouses, Putin and Xi come offering investment in everything from railways to the energy industry.

Russia's energy industry of course needs investment and technology from private Western multinationals, just as Made in China developed out of Western investment profiting from a cheap workforce. What the BRICS are trying to present to the Global South now is a choice; on one side, financial speculation, vulture funds and the hegemony of the Masters of the Universe; on the other side, productive capitalism -- an alternative strategy of capitalist development compared to the Triad (US, EU, Japan).

Still, it will be a long way for the BRICS to project a productive model independent of the casino capitalism speculation "model," by the way still recovering from the massive 2007/2008 crisis (the financial bubble has not burst for good.)

One might view the BRICS's strategy as a sort of running, constructive critique of capitalism; how to purge the system from perennially financing the US fiscal deficit as well as a global militarization syndrome -- related to the Orwellian/Panopticon complex -- subordinated to Washington. As Argentine economist Julio Gambina put it, the key question is not being emergent, but independent.

In this piece, La Stampa's Claudio Gallo introduces what could be the defining issue of the times: how neoliberalism -- ruling directly or indirectly most of the world -- is producing a disastrous anthropological mutation that is plunging us all into global totalitarianism (while everyone swears by their "freedoms").

It's always instructive to come back to Argentina. Argentina is imprisoned by a chronic foreign debt crisis essentially unleashed by the IMF over 40 years ago - and now perpetuated by vulture funds. The BRICS bank and the reserve pool as an alternative to the IMF and World Bank offer the possibility for dozens of other nations to escape the Argentine plight. Not to mention the possibility that other emerging nations such as Indonesia, Malaysia, Iran and Turkey may soon contribute to both institutions.

No wonder the hegemonic Masters of the Universe gang is uneasy in their leather chairs. This Financial Times piece neatly summarizes the view from the City of London -- a notorious casino capitalism paradise.

These are heady days in South America in more ways than one. Atlanticist hegemony will remain part of the picture, of course, but it's the BRICS's strategy that is pointing the way further on down the road. And still the multipolar wheel keeps rolling along.

Pepe Escobar is the roving correspondent for Asia Times. His regular column, "The Roving Eye," is widely read. He is an analyst for the online news channel Real News, the roving correspondent for Asia Times/Hong Kong, an analyst for RT and TomDispatch, and a frequent contributor to websites and radio shows ranging from the US to East Asia.  He argues that the world has become fragmented into "stans" -- we are now living an intestinal war, an undeclared global civil war. He has published three books on geopolitics, including the spectacularly-titled "Globalistan: How the Globalised World Is Dissolving Into Liquid War". His latest book is "Obama Does Globalistan."

THE PRECEEDING BLOG BY PAUL CRAIG ROBERTS STATES THAT IN SYRIA "THE FACTS ARE DIFFERENCT FROM THOSE PRESENTED BY THE PRESSTITUTE AMERICAN MEDIA AND MEMBERS OF THE U.S. GOVERNMENT." WHILE I KNOW THAT PCR USES ONLY RELIABLE SOURCES TO MAKE SUCH ACCUSATIONS, MY READERS MAY LIKE TO ACCESS SUCH SOURCES. IF SO, FIND ALL OF THE SORDID DETAILS IN THE TWO VIDEOS IMMEDIATELY BELOW AS RELATED BY A VETERAN REPORTER WHO HAS ACTUALLY ROAMED THE LOCATIONS IN QUESTION.

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Pepe Escobar: US will continue to arm anti-government rebels in Syria after veto 

http://youtu.be/y7ZWgJbpVnE

Uploaded by RTAmerica on Feb 6, 2012

For several months anti-government rebels have been protesting the government led by Bashar al-Assad. In the past few days the violence in Syria has increased radically and over the weekend the Syria resolution proposed by the UN Security Council was vetoed by China and Russia. Many have criticized the two countries for the veto but many feel Syria will share the same fate as Libya if the resolution passes. Pepe Escobar, Asia Times correspondent, joins us to look at the bigger picture. 

Like us and/or follow us: http://twitter.com/RT_America
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Escobar: Al-Qaeda agents worm into Syrian rebel army 

http://youtu.be/liXG_vm4jes

Uploaded by RussiaToday on Feb 18, 2012 

The EU states are calling for creating humanitarian corridors in Syria, which some fear could open the door to foreign intervention. But Asia Times correspondent Pepe Escobar says it's already underway. 

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Blogger's Note: A year or so ago I came across a couple videos by Pepe Escobar on his theme of "Pipelineistan." But I subsequently lost track of his publications until last week when I friended him on Facebook and then asking where I could find his latest reporting. He vectored me to Russia Today, from which I selected the two videos above. Those wishing to learn more about Pepe's concept of Pipelineistan should watch the video below. 

The Stream - Afghanistan...or Pipelineistan? - Pepe Escobar and Derrick Crowe 

http://youtu.be/JC3KPT3eSl0

Uploaded by AJstream on Jul 18, 2011

Many have theories as to why the US continues to fight in Afghanistan. One theory is that it's all about a pipeline. The Stream spoke with journalist Pepe Escobar and with political blogger Derrick Crowe. 

Read more: http://stream.aljazeera.com/story/afghanistan-or-pipelineistan 

Washington Leads World Into Lawlessness

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April 12, 2012 | Go to Original

The US government pretends to live under the rule of law, to respect human rights, and to provide freedom and democracy to citizens. Washington’s pretense and the stark reality are diametrically opposed.

US government officials routinely criticize other governments for being undemocratic and for violating human rights. Yet, no other country except Israel sends bombs, missiles, and drones into sovereign countries to murder civilian populations. The torture prisons of Abu Gahraib, Guantanamo, and CIA secret rendition sites are the contributions of the Bush/Obama regimes to human rights.

Washington violates the human rights of its own citizens. Washington has suspended the civil liberties guaranteed in the US Constitution and declared its intention to detain US citizens indefinitely without due process of law. President Obama has announced that he, at his discretion, can murder US citizens whom he regards as a threat to the US.

Congress did not respond to these extraordinary announcements with impeachment proceedings. There was no uproar from the federal courts, law schools, or bar associations. Glenn Greenwald reports that the Department of Homeland Security harasses journalists who refuse to be presstitutes, and we have seen videos of the brutal police oppression of peaceful OWS protestors. Chris Floyd describes the torture-perverts who rule the US. .

Now Washington is forcing as much of the world as it can to overthrow international treaties and international law. Washington has issued a ukase that its word alone is international law. Any country, except those who receive Washington’s dispensation, that engages in trade with Iran or purchases Iran’s oil will be sanctioned by the US. These countries will be cut off from US markets, and their banking systems will not be able to use banks that process international payments. In other words, Washington’s “sanctions against Iran” apply not to Iran but to countries that defy Washington and meet their energy needs with Iranian oil.

According to the Christian Science Monitor, so far Washington has granted special privileges to Japan and 10 European Union countries to continue purchasing Iranian oil. Requiring countries to shutdown their economies in order to comply with Washington’s vendetta against Iran, a vendetta that has been ongoing ever since the Iranians overthrew the Washington-installed puppet, the Shah of Iran, more than three decades ago, was more than Washington could get away with. Washington has permitted Japan to keep importing between 78-85% of its normal oil imports from Iran.

Washington’s dispensations, however, are arbitrary. Dispensations have not been granted to China, India, Turkey, and South Korea. India and China are the largest importers of Iranian oil, and Turkey and South Korea are among the top ten importers. Before looking at possible unintended consequences of Washington’s vendetta against Iran, what is Washington’s case against Iran?

Frankly, Washington has no case. It is the hoax of “weapons of mass destruction” all over again. Iran, unlike Israel, signed the non-proliferation treaty. All countries that sign the treaty have the right to nuclear energy. Washington claims that Iran is violating the treaty by developing a nuclear weapon. There is no evidence whatsoever for Washington’s assertion. Washington’s own 16 intelligence agencies are unanimous that Iran has had no nuclear weapon’s program since 2003. Moreover, the International Atomic Energy Agency’s weapons inspectors are in Iran and have reported consistently that there is no diversion of nuclear material from the energy program to a weapons program.

On the rare occasion when Washington is reminded of the facts, Washington makes a different case. Washington asserts that Iran’s rights under the non-proliferation treaty notwithstanding, Iran cannot have a nuclear energy program, because Iran would then have learned enough to be able at some future time to make a bomb. The world’s hegemon has unilaterally decided that the possibility that Iran might one day decide to make a nuke is too great a risk to take. It is better, Washington says, to drive up the oil price, disrupt the world economy, violate international law, and risk a major war than to have to worry that a future Iranian government will make a nuclear weapon. This is the Jeremy Bentham tyrannical approach to law that was repudiated by the Anglo-American legal system.

It is difficult to characterize Washington’s position as one of good judgment. Moreover, Washington has never explained the huge risk Washington sees in the possibility of an Iranian nuke. Why is this risk so much greater than the risk associated with Soviet nukes or with the nukes of the US, Russia, China, Israel, Pakistan, India, and North Korea today? Iran is a relatively small country. It does not have Washington’s world hegemonic ambitions. Unlike Washington, Iran is not at war with a half dozen countries. Why is Washington destroying America’s reputation as a country that respects law and risking a major war and economic dislocation over some possible future development, the probability of which is unknown?

There is no good answer to this question. Lacking evidence for a case against Iran, Washington and Israel have substituted demonization. The lie has been established as truth that the current president of Iran intends to wipe Israel off the face of the earth.

This lie has succeeded as propaganda even though numerous language experts have proven that the intention attributed to the Iranian president by American-Israeli propaganda is a gross mistranslation of what the president of Iran said. Once again, for Washington and its presstitutes, facts do not count. The agenda is all that counts, and any lie will be used to advance the agenda.

Washington’s sanctions could end up biting Washington harder than they bite Iran.

What will Washington do if India, China, Turkey and South Korea do not succumb to Washington’s threats?

According to recent news reports, India and China are not inclined to inconvenience themselves and to harm their economic development in order to support Washington’s vendetta against Iran. Having watched China’s rapid rise and having observed North Korea’s immunity to American attack, South Korea might be wondering how much longer it intends to remain Washington’s puppet state. Turkey, where the civilian and somewhat Islamist government has managed to become independent of the US- controlled Turkish military, appears to be slowly coming to the realization that Washington and NATO have Turkey in a “service role” in which Turkey is Washington’s agent against its own kind. The Turkish government appears to be reassessing the benefits of being Washington’s pawn.

What Turkey and South Korea decide is basically a decision whether the countries will be independent countries or be subsumed within Washington’s empire. The success of the American-Israeli assault on Iran’s independence depends on India and China.

If India and China give the bird to Washington, what can Washington do? Absolutely nothing. What if Washington, drowning in its gigantic hubris, announced sanctions against India and China?

Wal-Mart’s shelves would be empty, and America’s largest retailer would be hammering on the White House door.

Apple Computer and innumerable powerful US corporations, which have offshored their production for the American market to China, would see their profits evaporate. Together with their Wall Street allies, these powerful corporations would assault the fool in the White House with more force than the Red Army. The Chinese trade surplus would cease to flow into US Treasury debt. The offshored-to-India back office operations of banks, credit card companies, and customer service departments of utilities throughout the US would cease to function.

In America, chaos would reign. Such are the rewards to the Empire of globalism.

The White House moron and the neoconservative and Israeli warmongers who urge him on to more wars do not understand that the US is no longer an independent country. America is owned by offshoring corporations and the foreign countries in which the corporations have located their production for US markets. Sanctions on China and India (and South Korea) mean sanctions on US corporations. Sanctions on Turkey mean sanctions on a NATO ally.

Do China, India, South Korea and Turkey realize that they hold the winning cards? Do they understand that they can give the bird to the American Empire and bring it down in collapse, or are they brainwashed like Europe and the rest of the world that the powerful Americans cannot be resisted?

Will China and India exercise their power over the US, or will the two countries fudge the issue and adopt a pose that saves face for Washington while they continue to purchase Iranian oil?

The answer to this question is: how much will Washington pay China and India in secret concessions, such as eviction of the US from the South China Sea, for their pretense that China and India acknowledge Washington’s dictatorial powers over the rest of the world?

Without concession to China and India, Washington is likely to be ignored while it watches its power evaporate. A country that cannot produce industrial and manufactured goods, but can only print debt instruments and money is not a powerful country. It is a washed-up two-bit punk that can continue to strut around until the proverbial boy says: “the Emperor has no clothes”.

Update: China is responding to the sanctions by taking advantage of the drop in demand for Iranian oil to negotiate lower prices for its purchases. The result of Washington’s sanctions on Iran is to lower the cost of energy for China and to raise it for everyone else.