Jack Worthington's Blog

Investment Alert – Kiev’s announcement and the immediate threat it poses to the global economy

Posted in Investment & Social Commentaries by Jack Worthington on August 8, 2014

Investment Alert – Kiev’s announcement and the immediate threat it poses to the global economy.

 

First, if it’s not quickly self evident that the government running Ukraine does not have Western interests first and foremost in its decision-making process, I have some great property deals for you in South-Central Florida…please contact me immediately.

 

The Kiev government in Ukraine is clearly trying to do everything it can to bring the EU into a military confrontation with Russia…having our children fight their hateful war for them…shedding our blood and spending our money ad infinitum…for the benefit of a regime that by all fair international comparisons, we should deem war criminals.  Fairly, in the past, the leader of any government that has taken power illegally via coup and resorts to attacking an unfavoured group of its citizens militarily with heavy weapons, we have labelled as an international pariah / war criminal that must be removed.  Bashar Al Assad, Saddam Hussein, et al.  We seem to ignore Ukraine’s Petro Poroshenko…because he’s on the side of the coup we instigated.  He came to power through a voting process and set of circumstances that we ourselves continue to condemn as undemocratic frauds in Crimea and parts of SE Ukraine…yet we support him…because he’s our guy.

 

Enough on that…let’s get to the purpose of this note, and a key unforeseen butterfly effect of our Ukraine debacle that is about to send our world and the global economy into a tailspin.

 

It’s hard to believe the EU approved today’s announcement by Kiev that their sanctions against Russia (to be voted on this coming Tue 12 Aug) could include stopping the transit of Russian gas to Europe via Ukraine.  Obviously, such a policy has the potential to send the European economy into a tailspin and threatens the viability of the European project.  This suggestion certainly didn’t come out of Brussels.

 

I believe this is another instance of an unhinged regime in Kiev, with its supporters, trying to pull Europe into military / economic warfare with Russia at all costs.

 

The Kiev junta we installed and support is now holding the world economy and the future of a united Europe hostage via blackmail.  Our asinine foreign policy is backfiring into the real world, hurting real people…you and me.

 

Summary for investors:  Depending on the outcome of the Ukrainian sanctions vote, near term trouble ahead for global equity and European debt markets.  US$ strength and falling US treasury yields as safe haven investors return.  Artificially low yields fueling unintended credit expansion and US inflation…gold price up.  We’re being held at gunpoint folks.  We need to cut this Kiev regime off, and support Russia’s South Stream gas pipeline to Europe, bypassing Ukraine…rather than working to tank it.  There are global economic risks for the transit of Russian gas to South Korea via North Korea…the same with gas to Europe via Ukraine.  Somehow we need to extricate ourselves from this Ukraine debacle asap to mitigate unforeseen consequences which I fear could be far more damaging than we can imagine at the present time.

 

JW

NY, NY

8 Aug 2014

Tagged with: , , , ,

I #standwithsnowden @couragefound.org

Posted in Uncategorized by Jack Worthington on June 12, 2014

No matter who you are, or where you live, evil will oppose the light of truth and your world will be a darker place with no Snowdens; therefore I #standwithsnowden @couragefound.org

JW

NY, NY

12 June 2014

Eurozone’s Fundamental Problems and EU Politics

Posted in Investment & Social Commentaries by Jack Worthington on June 10, 2014

Eurozone’s Fundamental Problems and EU Politics

 

More on this issue because in my view, fundamental problems in the Eurozone are a key reason for the nationalist Euroskeptic victories in the recent EU elections and pose an existential threat to the Eurozone project…and rightfully so.

 

This is written in the hope that the average non-financial person in Ukraine and other potential EU entrants can better understand the Eurozone and make informed decisions.

 

Currency Union:

By combining the relative strength of the Deutsche Mark with the relative weakness of Southern European currencies, the resulting Euro is weaker than the previous Deutsche Mark, and stronger than the previous Lira, Franc, Peseta, et al.

 

The Result:

  1. The fundamental strength of the Deutsche Mark is watered down, and German exports are more price competitive on world markets, and Southern European exports are less so.
  2. Albeit not a Debt Union…implied but not assured:  The stronger national balance sheet of Germany is weakened to a lesser degree, and the weaker national balance sheets of S Europe are strengthened more significantly.  I.e. the main effect is that relatively weaker borrowers in S Europe have been able to borrow money at artificially lower interest rates and in larger volumes.

 

The Obvious Inherent Problems:

  1. Artificially low unemployment in Germany and high unemployment in S Europe.  I.e. as currently structured, the Eurozone is a powder keg of social instability waiting for a match.
  2. Fundamentally weak borrowers in S Europe were encouraged to borrow too much…asset bubbles were created…and bang…here we are…the Eurozone crisis.
  3. Due to the widely divergent economic growth vs. stability needs of Eurozone members, the Eurozone isn’t an “optimal currency area”, and is fundamentally incapable of supporting a single currency to meet its various members needs efficiently; i.e. Germany and Greece are profoundly different countries.  The same problem exists between states within the US, but to a lesser extent.
  4. The Eurozone is an economic bonanza for Germany, and a catastrophe for lesser-developed members, who take the candy of cheap money, only to get a mouthful of cavities later.

 

More “Ukraine’s” in Germany’s captive Eurozone market?  Bitte!  As long as I don’t have to co-sign on your debt!  I.e. as currently structured, it’s a one way street baby…or a roach motel: you can check-in but can’t check out.

 

The recent EU election results show that a growing number of Europeans are demanding a Eurozone check out.

 

Proposed Solution:

Currency zones have potential to work well for the benefit of all when the member states are more closely aligned in their culture, economic development cycles, and national debt is underwritten by the zone; i.e. 1+1 can equal 3.  Otherwise, it’s like an out-of-balance wheel that will eventually destroy the machine.

 

  1. Split the existing Eurozone into at least 2-3 new currencies.  Northern Euro anchored by Germany.  Southern Euro anchored by France.  Germany has the most to lose, and France has the most to gain.
  2. An entry-level / preparatory Euro for a group of new entrants at same level of econ development? 20-50 year integration project?

 

Currency union in Europe can work, but needs to be restructured to defuse the dangerous, built-in social instability.  Of course, Germany will vehemently oppose this proposal and defend the Eurozone to the bitter end; i.e. when members demand a check out…they enjoy this free ride like Americans enjoy the free ride of world reserve currency.

 

JW

NY, NY

10 June 2014

Russian Propaganda? Ukraine Crisis in Light of Texas History

Posted in Investment & Social Commentaries by Jack Worthington on June 6, 2014

Russian Propaganda? Ukraine Crisis in Light of Texas History

 

First, let’s acknowledge the basic flaw of recorded history:  Our understanding of history depends on who wrote it; i.e. it is, and always has been influenced by propaganda.  The Russians have a very different perspective on the heroes of WWII than the Americans.  The Mexicans have a very different perspective on Texas history and the US-Mexican War than Americans.  The point is so obvious that the phrase “History is written by the victors” is almost clichéd.

 

If our human experience proves we can’t even agree on how past events happened, it is certain we won’t be able to agree while they are happening and in flux.  I.e. reporting will be biased just as history is.  The forthcoming and varying historical accounts of Barack Obama’s presidency will be mind-boggling.  Which account will make it into standard US history books?  It will be a bitter and divisive, no-holds-barred fight.

 

Back to Ukraine.

 

The pot is calling the kettle black; i.e. the US is accusing Russia of waging an unrelenting propaganda war re: events in Ukraine.

 

I’ll take Russia’s side because few others are, and they are obviously on the short end of the stick vs. the globally powerful US propaganda machine (Google “Operation Mockingbird” http://en.wikipedia.org/wiki/Operation_Mockingbird ).  Does anyone really believe the US is wholly un-engaged in a Ukraine propaganda war?  Only the most naive Pollyanna would believe American hands are entirely clean and intentions benevolent in this situation.

 

The Russian government; i.e. Moscow is accused of intentionally destabilizing Ukraine by providing arms and personnel in various forms to the separatists in Eastern Ukraine.  Depending on the source, these people are called “freedom fighters” or “terrorists”.  That’s a wide gap of understanding friends.  Who is right?  Whom should we believe?

 

Let’s re-visit capsule summaries of Texas history and the US-Mexican War to get closer to the truth on what’s likely happening in Ukraine.  I.e. the basic human behaviour driving both conflicts…history repeats itself.

 

  • The Mexican government invited American settlers into the sparsely populated area we now call Texas.
  • There were frequent political and cultural clashes between the Mexican government and the American settlers.
  • In time, for various reasons, most notably a set of “Seven Laws” imposed upon the settlers by a new conservative government in Mexico, these new Mexican citizens decided they no longer wished to be part of Mexico, but wanted to retain their lands.  The “Seven Laws” were highly unpopular, and also resulted in secessionist movements in other Mexican states besides Texas.
  • The settlers declared independence from Mexico and waged war against them.
  • American citizens and even citizens of several other countries joined the settlers in their secessionist war against the Mexican government.  List of the soldiers and their nationalities / origin: http://www.thealamo.org/history/the-1836-battle/the-defenders/index.html …from thoughout the US, plus England, Ireland, Scotland, and Germany.
  • The war was extremely lopsided against the “Texian” settlers, culminating in the Alamo and Goliad massacres.
  • These massacres were a rallying cry which drew additional “freedom fighters” and mercenaries from the US to join the Texian settlers secessionist war.  There were repeated pleadings on behalf of the secessionists for the US to intervene and defeat the Mexican army.  Some Texians wanted an independent “Republic of Texas”, and some wanted immediate annexation into the US.
  • As a result, the Mexican President had the Mexican Congress issue a warning to the Americans and mercenaries who were flooding into Texas to support the secessionist war:

 

Foreigners landing on the coast of the Republic or invading its territory by land, armed, and with the intent of attacking our country, will be deemed pirates and dealt with as such, being citizens of no nation presently at war with the Republic and fighting under no recognized flag.  All foreigners who shall import, by either sea or land, in the places occupied by the rebels, either arms or ammunition or any kind for their use, will be deemed pirates and punished as such.

 

  • The Mexican President sent a warning to US President Andrew Jackson that any American citizen caught aiding and abetting the Texian secession on Mexican soil would be executed immediately.  That warning was not significantly broadcast by the US government to potential “freedom fighters” and mercenaries.  Implicit US support for the secession and later annexation?
  • Shortly thereafter, the Mexican army conducted a massacre at Goliad which was apparently so cruel it drew the US, Great Britain, and France into emotional sympathy with the Texian secessionists and changed the tide of the conflict.
  • Chased almost out of Texas by an overwhelmingly superior Mexican army, by sheer luck, the Texian forces caught the Mexican army taking their midday siesta nap, and captured the Mexican President who was leading the army.  War over.  Texas became an independent nation for a short period, with enduring Mexican-Texian skirmishes which finally ended when the US annexed Texas into the US and declared war on Mexico.
  • By the end of the US-Mexican war, the US had taken Texas, California, Nevada, Utah, Colorado, Arizona, and New Mexico from Mexico, for the pittance of US$15 million.

 

Does any of this sound familiar today?

Is our irrational fear of Russia’s intentions in Ukraine based upon our own rather sordid behaviour with Mexico?  Do we really believe Russia will pull a page out of this American playbook in Ukraine?

 

We accuse Russia of aiding and abetting / supporting “freedom fighters” and mercenaries from Russia and Chechnya in the Eastern Ukraine conflict, and this is our primary rationale for creating a significant threat to world economic prosperity and peace in response via aggressive rhetoric / sanctions / international isolation strategy against Russia.  Our own history demonstrates it’s a normal human behaviour to join underdog “freedom fights” with your cultural brothers wherever they may be, and that our own government did little to suppress those instincts in similar circumstances.  Do we not “get” the human element of this moment, and that perhaps the Russian government does not fully control these freedom fighters and mercenaries like puppets, and that the US, which runs Kiev by proxy, should also put the full weight of their influence behind an effort for peace as well?  Let’s start with an immediate halt to civilian bombing raids by the Ukrainian air force.  We broke it, and we know it.  We aren’t fooling anyone but the most naive Pollyanna’s or uninformed of the world with our rhetoric.

 

Let’s consider the unfolding Ukraine crisis in light of our own history and expected human behaviour, and de-escalate this situation asap before we create long term damage to world peace and prosperity.

 

The unanticipated butterfly effects of this foolish US strategy are leading the world into a dangerous place.  At the end of the day, when the dust settles, it will be the US that is isolated and weakened, not Russia.  BRIC’s and blocs are forming quickly against us for various, interconnected reasons, and we need to exit this lunacy asap.

 

JW

NY, NY

6 June 2014

Mainstream Media Dereliction of Duty in Ukraine

Posted in Investment & Social Commentaries by Jack Worthington on April 16, 2014

Mainstream Media Dereliction of Duty in Ukraine

 

Did anyone read this major news in the US or British mainstream media yesterday?  Of course not.  It was released in the Chinese press:  http://news.xinhuanet.com/english/china/2014-04/15/c_133264622.htm .

 

This story exposes the danger / foolishness of US foreign policy and the attempted / failed isolation of Russia…which only adds fuel to the growing fire of our own international isolation.

 

“Chinese President Xi Jinping calls for enhanced relations with Russia”.  “Bilateral relations are at their best and have not only benefited both countries and their people, but also have an irreplaceable role in maintaining world peace and stability, said Xi.  Xi asked Lavrov to convey his greetings to Putin, noting that he attaches great importance to the China-Russia comprehensive strategic partnership of coordination and cherishes the mutual trust and friendship shared with Putin.  He said the two sides should transfer their high political mutual trust into extensive pragmatic cooperation, maintain high-level exchanges and strategic communication, accelerate cooperation in strategic projects, and strengthen coordination and cooperation in international and regional affairs.  Lavrov also extended Putin’s greetings to Xi, noting that the bilateral comprehensive strategic partnership of coordination has global influence.  Russia is ready to enhance communication, coordination and cooperation with China, he said, adding that Putin is looking forward to his China visit and the CICA summit.”

 

We’re digging a deep and dangerous hole my fellow Americans.  The blocs are coming together for a grand scale and unnecessary confrontation, and we will be on the losing side.

I’m astounded by our foolishness…more than that, I’m shocked the German government took the US bait and allowed the Ukraine situation and Russia’s isolation to go this far.

******

The Western Ukrainian-controlled putsch government has now sent troops into the East.  Apparently citizens have blocked road access in some places, and there are reports of soldiers defecting to the Eastern Ukrainian side.

 

US Senator John McCain and others are vehemently pleading for the US to supply those advancing troops with weaponry.  Let’s be crystal clear:  John McCain and his ilk of deeply flawed judgment / morality / ??? in US government are encouraging Western Ukrainians to engage in lethal military combat against fellow Ukrainians in the East, irrespective of what is now the obvious truth on the ground…that many of these Ukrainians in the East are deeply upset that their democratically-elected government has been illegally hijacked by thugs with whom they have profound ideological disagreement.  They would prefer to remain Ukrainian (and Russia would also prefer that), but are left with little choice when democratic processes are opposed by the US / EU and tanks are rolling their way.

 

Let’s look at it differently for a moment:

 

What if a Tea Party rally on the Mall in Washington DC turned violent, and Tea Party activists stormed government buildings, forced the US President to flee, then declared themselves to be the new government, naming Sarah Palin as the new President.  Immediately thereafter, the new government starts writing new laws and abolishing others by fiat without vote, then sent military troops to California and New York to violently stop protests.

 

How long would Californians and New Yorkers stand for this?  What would you think if the Russian versions of John McCain and Victoria Nuland were actively involved in the violent Tea Party revolution?

 

And we support this??  This isn’t what Americans, or any civilized people do, friends.  This isn’t what the British do.  This isn’t what Germans do.  I’m ashamed to be associated with this, as an American.  This stinks people.

 

Follow the money:  If the East separates from the West taking their tax revenues with them, the US and EU will be morally obligated to continue financial support of Western Ukraine in perpetuity, one of the poorest failed states of Europe…Greece x 10…in addition to being a country where fascists have strong political support and occupy key positions in government…the EU cannot accept this.

 

We created this problem by instigating a revolution to de-stablize Putin.  It went horribly wrong, and we need to de-escalate this madness asap while we still can.

 

JW

16 Apr 2014

NY, NY

Texas, Crimea, Catalan, and What’s Really Driving the New “Cold War” With Russia

Posted in Uncategorized by Jack Worthington on March 25, 2014

Texas, Crimea, Catalan, and What’s Really Driving the New “Cold War” With Russia

 

As long-time readers and subscribers will know, the main purpose of my social and investment commentaries isn’t for amusement, entertainment, or aimless political punditry, but to provide investors with hard assets on the line much needed clarity through the fog of often chaotic economic and geopolitical events which can make investment decision-making and strategic planning a daunting, if not frightening endeavor…especially when it’s not only company jobs and money, but also a personal job and money on the line.  The aim is to provide broad directional clarity for the strategic decision-making process that can be used by anyone…hedge fund and private equity investors, corporate strategic planning departments, or “Joe the Plumber”.

 

I opened my general blog to the public after the 2008 financial crisis in the hope that it would help individuals who experienced massive losses, to recover…whoever or wherever they might be.

 

There are economic costs, potentially severe, when I am wrong, and I willingly accept that personal risk…because I’m almost always directionally correct in my analysis.  Anyone who put money on the line following my advice since 2008 has made tremendous returns, so much so, they probably shouldn’t be reading this anymore…should be sipping a pineapple drink somewhere with a lovely partner at their side.

 

******

 

Below is one key part of what I think is happening in Ukraine, and what you should do about it:

 

Before I present my hypothesis on the title topic, you must, at least temporarily, erase from your mind any notion that the current conflict between the West and Russia is primarily based on any serious concern on the part of Western leaders that Russia’s Vlad Putin is an unhinged tyrant / Neo-Hitler, hell-bent on invading as many sovereign nations as he can get away with, who must be stopped immediately…to the point of increasing the risk of thermonuclear war over it and bringing a cold and potentially hot war to Europe’s backyard…all this because of our profound and altruistic interest in democratic freedom for the peoples of Moldova / Trans-Dniester, Georgia / South Ossetia, Ukraine / Eastern Ukraine, etc…etc…, and genuine fear that Russia has sinister designs on owning the real estate once part of the Soviet Union…perhaps more…then advancing malevolent intentions onto our world from an unassailable empire of evil focused on destroying us.

 

Does this pass the smell test to you?  It doesn’t to me.  Then, all propaganda aside, who is is taking us into the conflict, and why specifically?

 

Wipe your mind clean of emotionally-charged CIA / Western media propaganda and ineptitude…just for a moment.

 

The Butterfly Effect

but·ter·fly ef·fect

noun

“The phenomenon whereby a small localized change in a complex system can have unintended, large effects elsewhere.”

 

The small localized change:

  • The botched US-led coup in Ukraine primarily meant to destabilize Vladimir Putin and weaken Russia.

 

The unintended, large effects elsewhere:

  1. The coup was hijacked by violent, fascist, Neo-Nazi, anti-Russian extremists, who occupy many top posts in the US/EU-backed putsch government, including the Deputy Prime Minister.  Immediately upon securing power, the fascists commenced activities of intimidation and violence against anyone, primarily ethnic Russians, who opposed their illegal putsch government.

  2. These intimidated ethnic Russians in Eastern Ukraine naturally sought help from mother Russia, to the extent that many regions of Southern / Eastern Ukraine want to secede from Ukraine and re-join Russia.  Crimea has already done so, and more could follow.  Following historical Russian strategic imperatives, Russia does not want to own pro-Russian Eastern Ukraine.  The area is being forced upon them by this botched US-led coup.  Russia needs these pro-Russian Eastern Ukrainians to balance hostile, anti-Russian politics in a key buffer country on its border.  If Russia owns Eastern Ukraine, it now has a hostile, anti-Russian, impoverished country on its border, strongly influenced, if not run by fascists, some of whom are on its terrorist watch list and have threatened Russia with nuclear rearmament within 3-6 months…a major problem for Russia.  Russia does not want, or need to own the real estate.  They just need to control it with balanced politics which lean in their favour. This strategy defines modern American hegemonistic “imperialism”, and what much of the world is fighting against…including our “allies”.  Imperialism is alive and well…just in a different format…and the United States is the dominant global imperialist power today, by far, and it leads to our undoing.

  3. Follow the money:  Pro-EU Western Ukraine is impoverished.  Pro-Russia Southern / Eastern Ukraine is relatively wealthy.  If Southern / Eastern Ukraine secedes from Ukraine, the EU gets the rump end of the deal and will be morally obligated to financially support a failed dependency state ad infinitum, while Russia gains a relatively prosperous, financially independent region.  I.e. Germany will have to foot the bill for yet another unending failed state in the EU…hence Germany’s unexpectedly harsh rhetoric against Putin.  Ukraine (the EU) needs Southern / Eastern Ukraine to pay the taxes to support the Western Ukrainians.

  4. Follow the money:  Crimea’s successful referendum, with potentially others in Eastern Ukraine, pours gasoline onto the embers of copycat, highly destabilizing, global self-determination movements, primarily driven by relatively prosperous regions that want to secede from basket-case, debt-ridden central governments who have been taxing them excessively to support their relatively poor cousins, inevitably leading to ruin for all.  Within weeks of Crimea’s successful self-determination referendum, others worldwide have gained momentum.  Catalonia, the Basque, Venice, Scotland, et al.  Perhaps Texas and other US states in the future?  Who knows.  But a key problem with secessionist movements is that relatively prosperous taxation areas remove themselves from dependency areas, throwing the remaining central governments into financial ruin and social upheaval.  Perhaps this is why the West is so aggressive at the moment…not really so angry at Putin, but worried about the destabilizing precedent?  I believe this is an important consideration behind the faux Ukraine crisis / new Cold War with Russia, which obviously cannot be publicly disclosed.  If true, this position puts the US and EU in the hypocritical and awkward position of aggressively repressing self-determination, one of the key Purposes and Principles of the United Nations.

 

Purposes and Principles of the United Nations (http://www.un.org/en/sc/repertoire/principles.shtml )

 

Article 1 (2) establishes that one of the main purposes of the United Nations, and thus the Security Council, is to develop friendly international relations based on respect for the “principle of equal rights and self-determination of peoples”. The case studies in this section cover instances where the Security Council has discussed situations with a bearing on the principle of self-determination and the right of peoples to decide their own government, which may relate to the questions of independence, autonomy, referenda, elections, and the legitimacy of governments.

 

Importantly, the four points above provide common ground between the US/EU/Russia for a peaceful closure / de-escalation of this crisis, and platform for an improved ongoing relationship.

  • Russia needs a neutralized buffer country on its border, and needs pro-Russian Eastern Ukrainians in Ukraine, not Russia, to balance power.  Russia does not want to own buffer zone real estate.  The West cannot fail to accept this or we are in deep trouble with a nuclear enemy that we’ve created.

  • The EU / US do not want to perpetually support a failed dependency state(s).

  • The EU, and Germany in particular, need to maintain strong and growing economic ties with Russia.  You convert enemies into allies, not by isolation, but by engagement…ref Bill Clinton’s strategy with China post-downed spy plane crisis.  One of the key problems driving this crisis is that the US does not engage with Russia to any significant extent, economically or otherwise, like the Europeans do…hence the aggressive / harsh / unhinged US rhetoric against Russia at times, but rarely against China to the same extent.  This is dangerous and needs to be mitigated by increased economic ties between the US and Russia.

  • US and EU leaders cannot allow a highly destabilizing “Self-Determination Spring” to explode onto the world scene at this critical juncture of world history.  As economic conditions for individuals worsen, these movements will likely grow.

 

Excellent wiggle room for a mutually beneficial deal here.  If clear-headed sanity prevails, this crisis will be no more, quickly.

 

What you should do about this?

 

Contact your elected representatives and urge them to tone down the emotionally charged anti-Russia rhetoric and move towards the vision above, which allows our post-Cold War global economy to maintain expansion, thereby providing growth of personal economic opportunities for all.  I haven’t heard any sane alternatives.

 

If peacefully resolved:  follow previous recommendations, mostly unchanged since late 2008.  Yes, still mostly unchanged.  Don’t be frightened by the sometimes terrifying seas of global financial markets.  Stay the course.  Don’t time markets.

 

If no peaceful, quick resolution:  ??  I won’t go there.

 

JW

25 March 2014

NY, NY

Finally, the Ukraine Truth Reported in Western Mainstream Media…and the US Should Disengage Immediately from the Disaster we Created

Posted in Uncategorized by Jack Worthington on March 7, 2014

Finally, the Ukraine Truth Reported in Western Mainstream Media…and the US Should Disengage Immediately from the Disaster we Created

 

The truth hurts. This is a US-led coup hijacked by Neo-Nazi’s, not the warm little group of pencil-necked, bespectacled liberal crusaders that Obama and Kerry are parading in front of the world as frontmen to this ugliness. Our propaganda lies are exposed and we need to immediately put the brakes on this unfolding disaster before more damage is done. Russia is on the right side of this one…while we find ourselves backing a fascist putsch and doing everything we can to prevent a democratic election in Crimea. The truth. Time to impeach Obama.

 

I’ll let Reuters take it from here:  http://www.reuters.com/article/2014/03/07/us-ukraine-crisis-far-right-insight-idUSBREA2618B20140307

 

“Ukraine’s Neo-Fascist Right Sector Leader Dmytro Yarosh to Run for President”: http://www.ibtimes.co.uk/ukraines-neo-fascist-right-sector-leader-dmytro-yarosh-run-president-1439324 .  “We remain the leaders of this revolution” – Dmytro Yarosh.

 

Estonian Foreign Minister Paet presents evidence to EU Foreign Affairs Chief Ashton showing that the Maidan protesters, not government snipers, shot 70 of their own people to create a pretext for violently overthrowing Ukrainian President Yanukovych:  http://www.zerohedge.com/news/2014-03-05/behind-kiev-snipers-it-was-somebody-new-coaltion-stunning-new-leak-reveals-truth

 

The personal animus that Barack Obama and John Kerry must have for Vlad Putin is so great that they’re willing to not only engage in this type of reprehensible illegal behaviour and purposefully mislead Americans, but take the world to the brink of another Cold (hot?) War with a major nuclear power…jeopardizing the future of all humanity.  How did they think they could get away with it???  The truth eventually defeats propaganda.  The former Soviet Union learned that lesson.  Can Obama and Kerry?

 

Time to impeach.

 

JW

7 Mar 2014

NY, NY

Sifting Through the CIA Propaganda Machine…5 Key, Unsettling Things Every American Should Know About Ukraine, and Aren’t Hearing in the Mainstream Media:

Posted in Investment & Social Commentaries by Jack Worthington on March 5, 2014

Sifting Through the CIA Propaganda Machine…5 Key, Unsettling Things Every American Should Know About Ukraine, and Aren’t Hearing in the Mainstream Media

 

First, some quick, additional personal background:  Since 2002 I’ve spent considerable, intermittent time in Kiev, South, and Southeastern Ukraine as a mergers and acquisitions investment banker.  In that role, I’ve advised global private equity investment firms and large companies on their acquisitions in non-US markets.  I’ve focused on this type of work since graduation from business school in 1993, with a stint running the 9-country Asia Pacific region for one of America’s oldest companies.  I’ve lived the majority of my adult life outside the US (8 countries, 4 continents since 1987).  I’ve spent a considerable amount of that time working in global emerging markets like Ukraine, and my back is scarred by professional and personal experience in many parts of the world…I was an early China investment banker before China was on the radar screen of most Westerners…many mistakes, many eye-opening learning experiences to share.  In Ukraine, I was retained by one of the world’s largest companies to educate them on the Ukrainian political and business environment, and lead their effort to joint venture with a Ukrainian oligarch and major industrial company in Ukraine on a government privatisation.  I was in Kiev in the immediate days prior to the Orange Revolution.  I’ve seen much there.

 

There aren’t that many countries in the key emerging or developed markets of our world where I have not at least evaluated a business deal, if not worked hand-in-hand with locals there.

 

5 key, unsettling things “Joe the Plumber” and investors need to know about the Ukrainian situation:

 

  1. American propaganda is global and powerful:  Every government appears to engage in some type of covert propaganda activities meant to influence the domestic citizenry to accept the viewpoint of the executive branch…primarily.  Sometimes the propaganda / false stories are meant to influence foreign investors, et al.  The US CIA runs the world’s most powerful propaganda machine through the US mainstream media, “Operation Mockingbird” http://en.wikipedia.org/wiki/Operation_Mockingbird .  Most of the major US mainstream media outlets employ some number of CIA-influenced journalists whose purpose is to plant government propaganda stories that suit their purpose and sway public opinion.  Prior to the Church Committee investigations in the 1970’s, these journalists were on the payroll of the CIA.  Subsequent to those investigations and public outcry, George H.W. Bush “reformed” the process, and journalist plants are no longer paid directly by the CIA, but they are still there.  Fact.  Google it.  American media have tremendous global reach and influence, and the CIA uses those organizations to plant and nurture sometimes entirely false narratives which support their objectives.  The Ukraine situation is one of those.  It is a false narrative, which appears to be driven by old Cold Warriors in the US federal bureaucracy, and the Barack Obama / John Kerry crew who have been publicly humiliated on the world stage once too often by Vlad Putin, and want payback, regardless of the cost to world peace and the American people.  Europeans are not following the US with calls for sanctions or economic warfare against Russia…for good reason…Europeans are not naive re: propaganda in general, and can smell it a mile away.

  2. Faceless bureaucrats really run the show:  Within an economically developed country like the US, the key, and perhaps most powerful drivers of policy are not elected politicians, but the mid-level, faceless, grey-suited government employees who have been at their posts for 20-30 years in arcane departments and are not subject to removal during election cycles.  They keep pumping out their viewpoints, reports, etc…to whomever occupies the public offices, and admonishing the facemen / women to comply or look foolish / uninformed.  Therefore, we get the same old stories year after year from our elected representatives.  In the US, many of those grey suits are leftovers from the Cold War and earn their paycheck by pumping out Cold War nonsense…unable to make the leap to a new paradigm.  Russia is not the Soviet Union and certainly not a communist ideological opponent hell-bent on spreading communism globally.  Many faceless, unaccountable federal bureaucrats, and their backers in the military-industrial complex, earn their keep by inventing enemies, instilling fear in politicians, and playing war games against those enemies.  I believe this same phenomenon in Russia is probably behind George Friedman’s (Stratfor) position that attacks from Western Europe over the centuries still drive the Russian geopolitical mindset…an unhelpful relic from the past which hamstrings our future.

  3. Very high probability that the Ukraine crisis is our fault…a botched, US-led coup meant to discredit Vlad Putin personally:  Vlad has embarrassed Barack Obama and John Kerry many times on the world stage, and it appears this is their orchestrated payback event.  They apparently planned to back moderate Vitaly Klitschko, however, similar to Libya and Syria, violent, extremist elements hijacked the coup, and now appear to have significant influence over the new putsch government’s policies, some being extreme anti-ethnic Russian policies, at gunpoint, beginning Day 1…driving about any sane Russian speaker in Eastern Ukraine towards the safety of Mother Russia, which this region was originally part of…the unintended consequences of a botched US-led coup.  The CIA propaganda machine is in overdrive, driving the false narrative that Russia has aggressively invaded Ukraine, omitting the fact that Russia is allowed by agreement to keep a certain number of military personnel in Crimea, which they have not surpassed.  You will notice that there are almost zero dissenting opinions in the major US / Western media outlets.  Let’s be clear:  By any credible democratic standard, there was an illegal, violent transfer of power in Ukraine, removing a leader installed via democratic, free-and-fair elections.  This leader is still alive and has not abdicated his position as President.  Indisputable facts.  The man may have committed a number of crimes, but, in a nation of laws, the democratic mechanisms to remove him, evaluate his crimes, and apply justice, are elections and the courts of law.  The Obama administration, and any foreign leader or journalist that supports it, is establishing a frightening precedent here…If we don’t like our elected representatives and suspect criminality in their behaviour, it is perfectly acceptable to ignore the rule of law and violently remove that leader from office.  The rationale for removing entrenched dictators in Egypt, Libya, and Syria is in no way similar to the situation in Ukraine.  The Obama administration, and the journalists that support it, are on the wrong side of democratic institutions in this situation, and I’m in awe of the sheer power of the US propaganda machine at work.

  4. Russia is not the Soviet Union or a serious US ideological opponent hell-bent on spreading communism globally, run by an egomaniacal thug and international villain, whose people are desperately trying to remove from power:  False propaganda narrative / emotional undercurrent meant to galvanize domestic American support for Obama’s personal vendetta against Vlad Putin.  US Republicans and Democrats are more ideologically divided than moderate Americans and Russians.  Most of today’s Russians would like to be a major, global economic power, leveraging the former Soviet empire to achieve primarily economic objectives as a counterweight to US hegemony.  China has similar objectives, and the European Union was formed in part as a counter-weight to US hegemony.  Those objectives do not make the Russians, Chinese, and Europeans geo-political enemies of Americans.  They are economic competitors…fierce competitors at times, but not enemies.  We need to ditch the anti-Russia, anti-China, anti-whomever rhetoric and learn to cohabitate in a multi-polar world…quickly.  We are not making friends in this world, and are making enemies quickly enough via NSA spying on allies, screw-ups in the Middle East, etc…  The aggressive anti-Russia rhetoric of US politicians is dragging the US back into a needless Cold (hot?) War with the Russian people.  Of course Vlad Putin is opposed by some in Russia and elsewhere, just like Obama and every American President before him, but the majority of Russians like Vlad Putin whether or not Americans do.  Europe will not follow us, or allow another Cold (hot?) War on their continent…compounded by serious energy economics at stake.  It’s easy for US bureaucrats to imagine a game of nuclear chess with missiles on someone else’s soil.  Won’t happen.  We’ll be isolated and embarrassed in this confrontation.  Europeans will see through this baloney…ultimately a direct threat to them in their own backyard.

  5. Russian retaliatory economic threats are credible and potentially catastrophic for the US…perhaps even beyond the impact of a nuclear exchange:  China is siding with Russia, against the US.  In other words, US politicians need to tone down the anti-Russia rhetoric immediately, or be willing to take personal, and public responsibility for the fallout.  China, Russia, and others are highly interested in replacing the US$ as the primary currency used in global trade, and are actively engaged in that effort.  Australia has now established direct currency trading with China, and an increasing number of Australia – China commodity trade deals are being settled in yuan rather than the US$.  If that trend gains serious momentum, life in the US will change dramatically and quickly for all Americans.  It’s foolish to kick Russia in the shins when their friends can profoundly harm us and are pursuing strategies that would.  Our best defense is to shore up the US$ and shut up.  It is not helpful in any way for high profile American politicians to call the Russian President, whoever it may be, denigrating names publicly, and reflective of the coarse, degenerated, reckless nature of Washington today.

 

JW

5 March 2014

NY,NY

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Vlad’s Next Move

Posted in Uncategorized by Jack Worthington on March 3, 2014

Vlad’s Next Move

 

Brilliantly, Putin will now sit back and do NOTHING. Crimea is holding a status referendum on 30 March to decide whether or not they will formally secede from Ukraine…a lead-in to re-joining Russia.  No Russian military action or threats from Putin are needed.  Through democratic self-determination, Crimea will be Vlad’s. All Vlad really has to do is sit back and watch the voting in Crimea and Eastern Ukraine…in fact, he could / should encourage the UN to monitor / ensure free and fair elections in all the Eastern Ukrainian regions coming his way.  Russia doesn’t want poverty-stricken Western Ukraine and its nationalist Neo-Nazi fascists who hate it, and neither will the EU as the US will find out soon enough.  The US will own this nasty little tar baby for years to come…humiliated, isolated, and alone at the end of the plank.

 

In all likelihood, a dramatically botched US-led coup hijacked by Neo-Nazi’s created this embarrassment for the US and calamity for Ukraine.  This is a monumental cock-up on the part of Barack Obama and John Kerry.  There should be congressional investigations, and Obama should be impeached if this proves to be the case.

 

JW

3 March 2014

NY, NY

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A Plea Re: Ukraine

Posted in Investment & Social Commentaries by Jack Worthington on March 3, 2014

A Plea re: Ukraine

Friends, the Obama administration is driving us into another humiliation on the world stage.  We’re about to be hung out to dry and internationally embarrassed again for our aggressive posturing on Ukraine, as the facts surface re: what is really happening there.  Syria redux.

The CIA’s propaganda machine, “Operation Mockingbird” (http://en.wikipedia.org/wiki/Operation_Mockingbird ) appears to be engaged in overdrive on the Ukraine situation.  What I’m reading / hearing in the US and British mainstream media does not correspond with common sense, or my own experience in the region.

I agree with much of the assessment of former Assistant Secretary of the Treasury, Dr. Paul Craig Roberts, on the Ukraine situation.  I highly recommend listening to his 25 minute interview:  http://www.kingworldnews.com/kingworldnews/Broadcast/Entries/2014/3/1_Dr._Paul_Craig_Roberts_files/Paul%20Craig%20Roberts%203%3A1%3A2014.mp3

In my view, the public facts clearly indicate that the violent overthrow of the Ukrainian government is a botched coup led by the US, and we should remove ourselves immediately from this unfolding debacle while we can still save some face and avoid jump-starting another Cold (hot?) War on European soil.  We need to stop digging our own grave immediately, and step back from this senseless confrontation with Russia, and as of today China, who are apparently supporting the Russian viewpoint.  We will end up standing on the edge of the plank, isolated, alone, humiliated, and further discredited in the international community.

Mine seems to be one of the lone Western voices with this view, but I guarantee it folks.  Coming right down the pipe at us.  Russia and China will oblige a UN Security Council hearing and facts will emerge.  If the public facts scream US-led botched coup, the hidden facts must be damning, and when those facts eventually surface, the US will suffer a worldwide public humiliation at a minimum.

My gut sense is that Obama and Kerry (men of expansive ego) had their feelings hurt one too many times on the world stage by Vlad Putin, and devised this scheme to destabilize Russia in its backyard.  They planned to back moderate, Ukrainian superhero boxer Vitaly Klitschko, but the skinhead Neo-Nazi fascists entered the scene and hijacked the coup.  The Neo-Nazi’s are now driving the coup agenda at gunpoint.  This is driving about anyone with a clear mind and Russian ethnicity in Eastern Ukraine, back into the safe arms of Mother Russia.  Crimea IS Russia historically.  Russia will not back down from this hard line in the dirt, and will defend it to the last man standing.  It is a foolish move to confront Russia here…just as it was a foolish move by the former Soviet Union to confront the US in Cuba.

The US is now aggressively backing a veritable Eastern European-style Neo-Nazi government (PM Arseniy Yatsenyuk appears neutered…a moderate puppet faceman) despite the fact that a violently-deposed, democratically-elected leader is still alive and continues to lead Ukraine in exile.  Viktor Yanukovych appears to be a very flawed leader (have there ever been Ukrainian leaders who are not?), and may be guilty of several crimes, but the ballot box and court system are the proper venues to remove him from office, examine facts, and apply justice.  The aggressive US efforts to ignore democratic mechanisms, and legitimize these illegal occupier thugs by encouraging / demanding dialogue between the world and these “new authorities” in the face of the facts, screams that this is a US-led coup, and that it’s gone belly up.  This is Bay of Pigs redux…time to pull the ripcord and get the hell out of there while we can still save some face and pull back from the brink of WWIII.

I urge you to contact your congressmen and senators, requesting them to immediately step out of Obama’s saber-rattling Ukraine bandwagon for a moment…put on the brakes…tone down the anti-Russia rhetoric…and examine facts asap before we isolate ourselves on the world stage any further, or even trip into World War III or a cold / hot war on European soil.

The US does not need any more enemies in this world, and we’re about to make them…en masse.

JW

3 March 2014

NY, NY

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