STORY AT-A-GLANCE
- The U.S. is using unofficial back channels to secure crucial supplies from Russia, while publicly talking about being tough on sanctions
- On the one hand, the West wants to appear tough on Russia by issuing trade embargoes, sanctions and bans on investments, while simultaneously being more or less dependent on Russia for essential commodities such as oil, gas, food and fertilizer components
- As a result, shortages of energy and food and rising inflation now loom large around the world, which could have catastrophic consequences for the average person, without doing anything to pressure Putin to pull out of Ukraine. In fact, the Russian ruble is now the strongest it’s been in seven years
- The corporate trend to make political statements at every opportunity is also backfiring and worsening the situation. The decision of some 1,000 companies to “self-sanction” and drop their business in Russia has now actually become a barrier to diplomatic resolution
- Most wars are a means to an end, and that end is corporate profits. The Ukraine conflict appears to be more of the same, as NATO warns we should expect a long, protracted war, and that we must continue to supply Ukraine with weapons
That the West has made serious strategic errors in its support of Ukraine are now becoming more obvious by the day. According to recent media reports, the U.S. is using unofficial back channels to secure crucial supplies from Russia, while publicly talking about tough sanctions. This somewhat embarrassing development was reported by Bloomberg, June 13, 2022, which noted:1
“The US government is quietly encouraging agricultural and shipping companies to buy and carry more Russian fertilizer, according to people familiar with the efforts, as sanctions fears have led to a sharp drop in supplies, fueling spiraling global food costs.
The effort is part of complex and difficult negotiations underway involving the United Nations to boost deliveries of fertilizer, grain and other farm products from Russia and Ukraine that have been disrupted by President Vladimir Putin’s invasion of his southern neighbor.
US and European officials have accused the Kremlin of using food as a weapon, preventing Ukraine from exporting. Russia denies that even as it has attacked key ports, blaming the shipment disruptions on sanctions imposed by the US and its allies over the invasion.
The EU and the US have built exemptions into their restrictions on doing business with Russia to allow trade in fertilizer, of which Moscow is a key global supplier.
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But many shippers, banks and insurers have been staying away from the trade out of fear they could inadvertently fall afoul of the rules. Russian fertilizer exports are down 24% this year. US officials, surprised by the extent of the caution, are in the seemingly paradoxical position of looking for ways to boost them.”
Biting the Hand That Feeds
All of this is starting to look like a combination of “biting the hand that feeds you” and “cutting off your nose to spite your face.” On the one hand, the West wants to appear tough on Russia by issuing trade embargoes, sanctions2 and bans on investments, while simultaneously being more or less dependent on Russia for essential commodities such as oil, gas, food and fertilizer components.
As a result, the Russian ruble is now the strongest it’s been in seven years. It’s so strong, the central bank in Russia is actually taking steps to weaken it, as they fear an excessively strong currency will make Russian exports less competitive.3 Meanwhile, the U.S. dollar is in the toilet and getting weaker by the day.
According to Bloomberg,4 the Kremlin now wants the Biden administration to provide assurances to buyers and shippers of Russian fertilizer and grain that they aren’t subject to sanctions.
This, Bloomberg notes, appears to be a condition to release shipments of Ukrainian farm products as well. Ivan Timofeev, a sanctions specialist at the Kremlin-founded Russian International Affairs Council told Bloomberg:5
“For Russia, it’s really important that U.S. authorities send a clear signal that these deals are permitted and in the interest of global food security and they shouldn’t refuse to carry them out.”
An estimated 25 million tons of grain, sunflower oil and other commodities are reportedly stuck in Ukraine due to security fears in ports and shipping lanes. Countries that have the most to lose by this, being the largest importers of Ukrainian grain, include Egypt, Indonesia, Bangladesh, Pakistan and Turkey.6
Who’s Getting Hurt?
The questions that Western leaders seem unwilling to answer are “who benefits and who gets hurt?” Right now, most of what they’ve done have only helped strengthen Russia’s position, while placing their own citizens in harm’s way.
Shortages of energy and food and rising inflation now loom large around the world, which could have catastrophic consequences for the average person, without doing one lick to pressure Putin to pull back from Ukraine. Basically, American and European citizens are the ones being punished, through higher prices on food and energy, while Russia is reaping mostly benefits.
According to Radio Free Europe,7 Russia has “nearly doubled its income from energy sales to the EU” since it entered Ukraine, this despite the fact that the EU cut its oil imports by 20% and coal by 40%.
Research by Center for Research on Energy and Clean Air (CREA) released on April 28, 2022, showed “soaring prices have more than compensated Russia for the loss in sales volume due to sanctions,” Radio Free Europe writes. China and India have also increased their imports from Russia.
Corporate Self-Sanctioning Was a Bad Move
The new corporate trend to make political statements at every opportunity is also backfiring and worsening the situation. As reported by Bloomberg, June 14, 2022:8
“Officials were initially impressed by the willingness of companies from BP Plc. to McDonald’s Corp. to abruptly ‘self-sanction,’ sometimes selling assets at fire-sale prices. But the administration was caught off-guard by the potential knock-on effects — from supply chain bottlenecks to uninsurable grain exports — due to the companies’ decisions to leave, according to people familiar with internal discussions …
So while Ukrainian President Volodymyr Zelenskiy has urged US businesses to cease operations in Russia, telling a joint session of Congress that the Russian market was ‘flooded with our blood,’ the Biden administration has been encouraging some commerce, including for agriculture, medicine and telecommunications.”
Here’s the key problem: The decision of some 1,000 companies to “self-sanction” and drop their business in Russia has now actually become a barrier to diplomatic resolution.
Sanctions are a popular tool because it outsources government policy to the private sector. Once warring sides decide to meet at the negotiation table, the promise to eliminate sanctions can act as a strong incentive to end the violence.
Alas, with so many private companies choosing to make political statements rather than just running a business — selling burgers to hungry Russians, or whatever — diplomatic negotiations are now actually hampered, because these companies have eliminated a lot of the leverage that the promise to lift sanctions could bring.
They left voluntarily, spitefully, and not because government sanctions legally prevented them from doing business there. As a result, the “carrot” of lifting sanctions doesn’t have the same bargaining power. As explained by Bloomberg:9
“It’s hard even to offer that [removal of sanctions] as a potential benefit of entering into negotiations because much of the pullout by American businesses has been self-inflicted. Companies could face public blowback if they are seen as rushing back into the Russian market …
[L]onger-term, the US may undercut its ‘soft power’ in Russia by abandoning the local market to brands from other countries — or even to Russian firms that are snapping up company assets at little or no cost. The departure of high-profile US firms ‘does some psychological harm to Russia, psychological injury,’ Smith said. But ‘at the end of the day, is removing elements of US soft power where the US wants to be?'”
Moralism Fail
In the Jimmy Dore Show video in the section above, Dore expands on this, quoting some tweets by independent journalist Glenn Greenwald. In one June 14, 2022, tweet, Greenwald commented on the Bloomberg story:
“The problem from the start was the obligatory moralism narrative didn’t help decipher what policies would and wouldn’t work. And that was as intended: there was so much to debate and question about US policy, but it was barred. Anyone who tried was maligned as a Russian stooge.”
Why the Ukraine War Is a Scam
The Jimmy Dore Show above discusses journalist Wolfram Weimer’s appearance on German television, in which he boldly contradicts the official narrative about the Ukraine conflict.
Weimer points out that while the German chancellor “is working with this language template: ‘Russia must not win this war, Ukraine must win,'” it’s clear that Russia has already won the war and Ukraine doesn’t stand a chance. So, where is this headed, politically? Weimer wonders. “Since we cannot win this war, we have to end it as quickly as possible,” he adds.
The fact that Western supporters of Ukraine have not yet stepped up to help Ukraine negotiate a peace deal is instructive in and of itself. What could that mean? Well, for starters, it’s an ominous indication that it’s all about greasing the wheels of war.
Time and again, the U.S. has entered into intentionally unwinnable conflicts that have but one real purpose: To funnel taxpayer dollars into the private military industrial complex. Almost all of the $40 billion “Ukraine aid” package, for example, went straight to weapons manufacturers.10
It can be tempting to jump on the “support Ukraine” bandwagon, but it would be far more useful to try to really understand the deeper forces at play. More often than not, war is about keeping the weapons industry flush with cash.11
In the final analysis, that’s typically what decades-long, drawn-out unwinnable conflicts are all about, and in this case, it seems NATO is trying to take advantage of the situation by dragging it out as long as possible. Let’s not forget that NATO allies actually circumvented an arms embargo against Russia, supplying it with weapons as recently as 2020. In an exclusive report, The Telegraph reported:12
“France and Germany armed Russia with €273 million (£230 million) of military hardware now likely being used in Ukraine, an EU analysis shared with The Telegraph has revealed. They sent equipment, which included bombs, rockets, missiles and guns, to Moscow despite an EU-wide embargo on arms shipments to Russia, introduced in the wake of its 2014 annexation of Crimea.
The European Commission was this month forced to close a loophole in its blockade after it was found that at least 10 member states exported almost €350 million (£294 million) in hardware to Vladimir Putin’s regime.
Some 78% of that total was supplied by German and French firms … Alongside bombs, rockets and torpedoes, French firms sent thermal imaging cameras for more than 1,000 Russian tanks as well as navigation systems for fighter jets and attack helicopters.”
Meanwhile, both Germany and France have been reluctant to provide Ukraine with high-powered arms. So, is it really about helping the people of Ukraine, or is it about squeezing out money for the military industrial complex? Many nations have sent what amounts to antiquated cast-offs to Ukraine, including old Soviet-era tanks.13
The mishmash of weaponry from different countries and eras make for a logistical nightmare, but it allows countries to virtue signal, wave the flag of solidarity, and justify a new surge of military spending to rebuild their own armaments. Dump the old in Ukraine and refill with the latest and greatest. Quite the racket.
War as a Source of Profit Endangers Conflict Resolution
It’s high time the world starts to realize that most wars have a profit motive behind them. Not always, but often enough. As noted in “Profits of War: Corporate Beneficiaries of the Post-9/11 Pentagon Spending Surge,” a 2021 report by the Watson Institute and Center for International Policy:14
“The United States government’s reaction to the terrorist attacks of September 11, 2001 led to dramatic increases in Pentagon funding and revenues for weapons contractors. While the costs and consequences of America’s war policies of the twenty-first century have been well-documented, the question of who has profited from this approach has received less attention.
Corporations large and small have been, by far, the largest beneficiaries of the post-9/11 surge in military spending. Since the start of the war in Afghanistan, Pentagon spending has totaled over $14 trillion, one-third to one-half of which went to defense contractors.
Some of these corporations earned profits that are widely considered legitimate. Other profits were the consequence of questionable or corrupt business practices that amount to waste, fraud, abuse, price-gouging or profiteering.
The Pentagon’s increasing reliance on private contractors in the post-9/11 period raises multiple questions of accountability, transparency, and effectiveness. This is problematic because privatizing key functions can reduce the U.S. military’s control of activities that occur in war zones while increasing risks of waste, fraud and abuse.
Additionally, that the waging of war is a source of profits can contradict the goal of having the U.S. lead with diplomacy in seeking to resolve conflicts.
More broadly, the outsized influence of defense contractors has resulted in a growing militarization of American society. This is manifested in everything from the Pentagon’s receipt of the lion’s share of the federal discretionary budget — more than half — to the supply of excess military equipment to state and local law enforcement agencies.”
Bankers Also Profit From War
Contractors aren’t the only ones that can cash in on war. Did you know, for example, that Goldman Sachs, the New York-based investment bank, is profiting from the war in Ukraine by selling Russian debt? In March 2022, NBC News reported:15
“As the Western world scrambles to defend Ukraine by locking down Russian money, the company is acting as a broker between Moscow’s creditors and U.S. investors, pitching clients on the opportunity to take advantage of Russia’s war-crippled economy by buying its debt securities low now and selling them high later, according to four financial world sources familiar with the strategy.
An investor who declined a Goldman trader’s offer to add Russian debt to his hedge fund’s portfolio — because of the war — said the trader suggested he could ‘just put it in your personal account’ to avoid scrutiny. That does not violate the U.S. sanctions regime, but it is very different from the public face Goldman is putting on its relationship with Russia …
When U.S. officials sanctioned Russian banks this month, it became illegal for U.S. companies to do business directly with major Russian financial institutions. But the Treasury Department’s Office of Foreign Assets Control, or OFAC, issued a memo affirming the legal legitimacy of trading Russian assets in “secondary markets” — those not directly involving the Russian banks. That’s why Goldman can act as a broker …
Goldman’s effort to profit from the war highlights the complexities the Biden administration faces in trying to punish Russia without harming Wall Street and the economies of the U.S. and its allies. And it is a stark reminder that no asset is too toxic to be traded when there are willing buyers, sellers and brokers.”
There’s More to the Story
In this case, Russia appears to have had at least some justification for its actions. In a June 14, 2022, article16 in The Guardian, Angela Giuffrida summarized comments made by Pope Francis during an interview with the Jesuit magazine La Civiltà Cattolica.
While the pontiff condemned the “ferocity and cruelty of the Russian troops,” he added that Putin’s invasion of Ukraine was “perhaps somehow either provoked or not prevented,” and we should resist the temptation to think of the conflict in terms of “good versus evil.”
He explained he’d met an unnamed head of state some months earlier, who told him “he was very worried about how NATO was moving.” When Francis asked why, the head of state replied, “They are barking at the gates of Russia. They don’t understand that the Russians are imperial and can’t have any foreign power getting close to them.”
Indeed, shortly before Russia’s launch of its “special military operation” in Ukraine, Putin had demanded NATO rule out allowing Ukraine — which shares a border with Russia — into the alliance. In June 2022, Russian Foreign Minister Sergei Lavrov told the BBC:17
“We declared a special military operation because we had absolutely no other way of explaining to the West that dragging Ukraine into NATO was a criminal act.”
Russia has also accused Ukraine of conducting dangerous bioweapons research on behalf of the U.S. I reviewed the evidence for this in “Bioweapons Expert Speaks Out about US Biolabs in Ukraine.” Thirdly, Russia has been critical and seemingly grown weary of Ukraine’s attacks on native Russians in the Donbas region, a conflict that has been ongoing since 2014. So, there’s more to this story than what the media are telling us.
What’s the Real Motive for Keeping Conflict From Resolution?
If Russia suspected Ukraine was being groomed to be used against Russia, there’s every reason to suspect a diplomatic solution is available. Why not give Russia the assurances it wants that Ukraine won’t be used against it? The fact that Ukrainian supporters send weapons rather than diplomats therefore raises questions about motives.
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As recently as June 19, NATO chief Jens Stoltenberg warned the Ukraine war “could last for years,” and that Western nations “must prepare to continue supporting Ukraine” — “Even if the costs are high, not only for military support, [but] also because of rising energy and food prices.”18
U.K. Prime Minister Boris Johnson has issued the same warning.19 So, ask yourself: Is NATO interested in negotiating peace and saving lives by ending the violence? Or is it merely taking advantage of the conflict to keep the war machine, the war industry, going, for as long as possible?
- 1, 4, 5, 6 Bloomberg June 13, 2022
- 2 Treasury.gov Ukraine/Russia-Related Sanctions
- 3 CNBC June 23, 2022
- 7 Radio Free Europe April 28, 2022
- 8, 9 Bloomberg June 14, 2022 (Archived)
- 10 Politico May 19, 2022
- 11 American Magazine March 9, 2022
- 12 The Telegraph April 22, 2022 (Archived)
- 13 Washington Post April 26, 2022 (Archived)
- 14 Watson Institute, Profits of War
- 15 NBC News March 10, 2022
- 16 The Guardian June 14, 2022
- 17, 18, 19 BBC June 19, 2022
Five Things New “Preppers” Forget When Getting Ready for Bad Times Ahead
The preparedness community is growing faster than it has in decades. Even during peak times such as Y2K, the economic downturn of 2008, and Covid, the vast majority of Americans made sure they had plenty of toilet paper but didn’t really stockpile anything else.
Things have changed. There’s a growing anxiety in this presidential election year that has prompted more Americans to get prepared for crazy events in the future. Some of it is being driven by fearmongers, but there are valid concerns with the economy, food supply, pharmaceuticals, the energy grid, and mass rioting that have pushed average Americans into “prepper” mode.
There are degrees of preparedness. One does not have to be a full-blown “doomsday prepper” living off-grid in a secure Montana bunker in order to be ahead of the curve. In many ways, preparedness isn’t about being able to perfectly handle every conceivable situation. It’s about being less dependent on government for as long as possible. Those who have proper “preps” will not be waiting for FEMA to distribute emergency supplies to the desperate masses.
Below are five things people new to preparedness (and sometimes even those with experience) often forget as they get ready. All five are common sense notions that do not rely on doomsday in order to be useful. It may be nice to own a tank during the apocalypse but there’s not much you can do with it until things get really crazy. The recommendations below can have places in the lives of average Americans whether doomsday comes or not.
Note: The information provided by this publication or any related communications is for informational purposes only and should not be considered as financial advice. We do not provide personalized investment, financial, or legal advice.
Secured Wealth
Whether in the bank or held in a retirement account, most Americans feel that their life’s savings is relatively secure. At least they did until the last couple of years when de-banking, geopolitical turmoil, and the threat of Central Bank Digital Currencies reared their ugly heads.
It behooves Americans to diversify their holdings. If there’s a triggering event or series of events that cripple the financial systems or devalue the U.S. Dollar, wealth can evaporate quickly. To hedge against potential turmoil, many Americans are looking in two directions: Crypto and physical precious metals.
There are huge advantages to cryptocurrencies, but there are also inherent risks because “virtual” money can become challenging to spend. Add in the push by central banks and governments to regulate or even replace cryptocurrencies with their own versions they control and the risks amplify. There’s nothing wrong with cryptocurrencies today but things can change rapidly.
As for physical precious metals, many Americans pay cash to keep plenty on hand in their safe. Rolling over or transferring retirement accounts into self-directed IRAs is also a popular option, but there are caveats. It can often take weeks or even months to get the gold and silver shipped if the owner chooses to close their account. This is why Genesis Gold Group stands out. Their relationship with the depositories allows for rapid closure and shipping, often in less than 10 days from the time the account holder makes their move. This can come in handy if things appear to be heading south.
Lots of Potable Water
One of the biggest shocks that hit new preppers is understanding how much potable water they need in order to survive. Experts claim one gallon of water per person per day is necessary. Even the most conservative estimates put it at over half-a-gallon. That means that for a family of four, they’ll need around 120 gallons of water to survive for a month if the taps turn off and the stores empty out.
Being near a fresh water source, whether it’s a river, lake, or well, is a best practice among experienced preppers. It’s necessary to have a water filter as well, even if the taps are still working. Many refuse to drink tap water even when there is no emergency. Berkey was our previous favorite but they’re under attack from regulators so the Alexapure systems are solid replacements.
For those in the city or away from fresh water sources, storage is the best option. This can be challenging because proper water storage containers take up a lot of room and are difficult to move if the need arises. For “bug in” situations, having a larger container that stores hundreds or even thousands of gallons is better than stacking 1-5 gallon containers. Unfortunately, they won’t be easily transportable and they can cost a lot to install.
Water is critical. If chaos erupts and water infrastructure is compromised, having a large backup supply can be lifesaving.
Pharmaceuticals and Medical Supplies
There are multiple threats specific to the medical supply chain. With Chinese and Indian imports accounting for over 90% of pharmaceutical ingredients in the United States, deteriorating relations could make it impossible to get the medicines and antibiotics many of us need.
Stocking up many prescription medications can be hard. Doctors generally do not like to prescribe large batches of drugs even if they are shelf-stable for extended periods of time. It is a best practice to ask your doctor if they can prescribe a larger amount. Today, some are sympathetic to concerns about pharmacies running out or becoming inaccessible. Tell them your concerns. It’s worth a shot. The worst they can do is say no.
If your doctor is unwilling to help you stock up on medicines, then Jase Medical is a good alternative. Through telehealth, they can prescribe daily meds or antibiotics that are shipped to your door. As proponents of medical freedom, they empathize with those who want to have enough medical supplies on hand in case things go wrong.
Energy Sources
The vast majority of Americans are locked into the grid. This has proven to be a massive liability when the grid goes down. Unfortunately, there are no inexpensive remedies.
Those living off-grid had to either spend a lot of money or effort (or both) to get their alternative energy sources like solar set up. For those who do not want to go so far, it’s still a best practice to have backup power sources. Diesel generators and portable solar panels are the two most popular, and while they’re not inexpensive they are not out of reach of most Americans who are concerned about being without power for extended periods of time.
Natural gas is another necessity for many, but that’s far more challenging to replace. Having alternatives for heating and cooking that can be powered if gas and electric grids go down is important. Have a backup for items that require power such as manual can openers. If you’re stuck eating canned foods for a while and all you have is an electric opener, you’ll have problems.
Don’t Forget the Protein
When most think about “prepping,” they think about their food supply. More Americans are turning to gardening and homesteading as ways to produce their own food. Others are working with local farmers and ranchers to purchase directly from the sources. This is a good idea whether doomsday comes or not, but it’s particularly important if the food supply chain is broken.
Most grocery stores have about one to two weeks worth of food, as do most American households. Grocers rely heavily on truckers to receive their ongoing shipments. In a crisis, the current process can fail. It behooves Americans for multiple reasons to localize their food purchases as much as possible.
Long-term storage is another popular option. Canned foods, MREs, and freeze dried meals are selling out quickly even as prices rise. But one component that is conspicuously absent in shelf-stable food is high-quality protein. Most survival food companies offer low quality “protein buckets” or cans of meat, but they are often barely edible.
Prepper All-Naturals offers premium cuts of steak that have been cooked sous vide and freeze dried to give them a 25-year shelf life. They offer Ribeye, NY Strip, and Tenderloin among others.
Having buckets of beans and rice is a good start, but keeping a solid supply of high-quality protein isn’t just healthier. It can help a family maintain normalcy through crises.
Prepare Without Fear
With all the challenges we face as Americans today, it can be emotionally draining. Citizens are scared and there’s nothing irrational about their concerns. Being prepared and making lifestyle changes to secure necessities can go a long way toward overcoming the fears that plague us. We should hope and pray for the best but prepare for the worst. And if the worst does come, then knowing we did what we could to be ready for it will help us face those challenges with confidence.
I don’t think the millions of Ukrainians who have been made homeless, the tens of thousands who have died, and the ones who continue to fight for their homeland think the war is a scam. There is no peace to be made with an insane dictator who wantonly commits war crimes.
Absolutely right. Just because some people
say it, doesn’t make it true.
Article could have been written by the Kremlin. Just another Putin apologist. Putin is a murderous thug. He has ordered the murder of over 200 political opponents, journalists and business competitors. He has amassed a net worth that exceeds that of Elon Musk. He owns over forty mansions, more than forty personal aircraft, and collects million dollar wristwatches. How, on a civil servant’s salary? He bullies his neighbors. He invaded a sovereign nation. Twice! First in Georgia, now in Ukraine. Both times using the very same excuse that Hitler used in 1937-1939. Putin is the new Hitler. There are those who sing his praises because he is fighting against the NWO, the WEF, and the Great Reset. Idiotic! Putin and Klaus Schwab have been friends since 1992. Putin was the keynote speaker at the WEF in 2021! To great accolades! Open your eyes! Good grief! Quit spouting the Kremlin line before you find yourself on the wrong side of truth.
Hopefuly Putin will win total control ASAP before Fake Zelensky removes all the evidence (and drains our bank accounts) of one of the most corrupt countries to ever exist. Only 2nd to the USA now that the Big Guy has stolen the show.
Please, God, Bless Vladimir Putin, and all Russians everywhere.
As you know, Mr. Putin’s aim is to *NOT* make money — it is simple retribution for what has happened in Novorossiya for the past 8 years. However, Kyiv and NATO…. smelled money… a new way to gain cash to put in offshore bank accounts of their oligarchs.
After all, even the Pentagon admits “There is no profit in peace.”.
Russia fuels its own military industrial complex, selling weapons to pariah states, like Syria and Myanmar and nuclear-capable Iskanders to Belarus on Europe’s doorstep. What’s the difference?
The “Real Motive for Keeping the Conflict from Resolution” is, I believe, the fact that, should Russia succeed, there will in all likelihood be revealed the people involved in every kind of perverted activity imaginable, and those are the same people from the overt crime families currently running the show. Although Zelensky has been assiduous in destroying the paperwork involved, there are plenty of eyewitnesses less easy to get rid of.
Smartest comment in the room and 100% correct!