“President Putin is the leader of a great country who is influential around the world. He is my best, most intimate friend”, Xi Jinping, 2018
Hello darkness, I am still looking for useful idiots. The petrostate is at my disposal, so feudalism has been redefined. I no longer distribute parcels of land, but rather stakes in energy companies. The cabal from St. Petersburg is here to serve me. That part is known as “institutionalization of corruption.” Anyone available to advance my vision? My good strategic partner south of the border – who like me, desires to subjugate others and imprint on them an image of our own- and I, are forming an alliance and I don’t care if you call it an axis of convenience. The goal is global dominance and the destruction of the dollar as the world’s reserve currency. Creepy visions inspire us. Nightmares of empires gone, keep us up at night. The sound of silence scares us. Transparency is our enemy. Democracy is detestable. Visions of people talking without speaking undermine our totalitarianism. Ideas of having people hearing without listening is inconceivable. In the wells of silence, the drops of colored rain could create a flood, and we have no interest in building arks. We love imparting nations with tumors via local allies. Tumors like cancers grow. Annexation is my other name. Neon gods in the form of social media inspire me. There are so many idiots there. My news become their slogan. I told my strategic partner south of the border that we need a cavalry of hackers.
In continuation of two recent commentaries on China and the Global Balance of Power, in today’s commentary we discuss the implications of what we perceive to be an alliance between Russia and China. Given the number of articles written about the successes of the Putin regime, allow us to pose a few questions. Are those successes in reference to:
- The enormous compliance of Russia with international conventions in human trafficking?
- If not the above, then most certainly should be referring to Gazprom’s deal with Novatek through Transinvestgas which was acting as the intermediary. (Hint: If the latter was cut off, the savings for Gazprom would have been merely 70%!)
- The raiding of the health care budget in Russia which has resulted in third-world statistics?
- Possibly refer to the fact that around 120 cronies control about 40% of Russia’s wealth?
- Sorry, I was mistaken. It must be referring to the 100+ Gazprom’s subsidiaries (recall that Gazprom is state-owned) registered in exotic places, in order to save taxes and thus reduce the tax liability of the state! As Karen Dawisha states in her outstanding book Putin’s Kleptocracy, “In any Western country, this would be called criminal malfeasance. In Russia it Is called government.”
- The construction of interstate, bridges, and infrastructure despite the trillions received via energy exports?
- Is it referring to the Nord Stream pipeline, which on the European side, cost about 2.1 million euros per kilometer, and on the Russian side cost about 6 million euros per kilometer?
- Is it referring to the unaccounted billions for the Sochi Olympics?
- Could it be a reference to the median wealth per person of less than about $3,000 vs. $69,000 for North America?
- Is it referring to the technological innovations that the Chinese are trying to steal?
- Is it referring to the dreams of thousands of young Russians becoming entrepreneurs?
- Is it referring to the establishment of a meritocratic state?
- What are the chances that the reference is made to Gazprom and Rosneft, where more than half of their Capex is spent on non-energy expenditures?
- Is it referring to free speech, free association, civil societies, and the triumph of democratic institutions?
- Is it referring to a flood of immigrants aspiring to live in Russia?
- Is it referring to the bribes that are estimated to exceed Russia’s budget?
- Maybe is referring to Bill Browder and his Hermitage Capital Management who invested billions of dollars only to find himself on the run, the funds confiscated and his attorney (Sargey Magnitskiy) found dead while in pretrial detention?
- Is it referring to the uncorrupted circle of friends who overnight became oligarchs who are “worth” billions of dollars?
- Is it referring to upholding the regime in Syria, in order to get the port of Tartus?
- Maybe it is referring to the thriving middle class?
- Could Russia’s greatness be referring to the referendum vote following Crimea’s annexation where Putin’s own Human Rights Council showed that only 22.5% of locals favored the annexation vs. the declared 82%?
- Is it referring to the high praise it has received from Transparency International due to the eradication of corruption? (Hint: Nigeria has been ranked higher than Russia).
- Maybe it is referring to the thousands of businesspeople who have been imprisoned and whose assets have been confiscated, and then turned over to the St. Petersburg cabal?
- Could it be that it is referring to the independent judiciary?
- Could it be that the reference is to the 110,000 businesspersons who remained in prison because they refused to pay the shakedown fees?
- Is it referring to the defense it has exhibited to the Westphalian commitments?
- Could it be a reference to the elimination of the “party of crooks and thieves” as the opposition has been asking for?
- Possibly refer to the fact that close to 40% of the workforce below the age of thirty have dead-end jobs with the state?
- Maybe the reference is made to RosUkrEnergo (RUE) and its transparent ways of doing business?
- Sorry, I was mistaken again. It must be referring to the stripping of assets from Russian state-controlled enterprises. (Hint: Andres Aslund has said that Russian state-controlled corporations resemble “organized crime syndicate”).
- My bad. The reference is certainly for the fact that Putin’s loyalists are put on the board of state-owned as well as on private enterprises over which they have at the same time supervisory powers!
Certainly, the list can go on and on. However, having a clear understanding of the intentions behind the powers and/or the possible games that could be deployed in an effort to disrupt the world order and impose on it a balance of power that will advance the interests of kleptocratic authoritarianism in relation to the aspiration of the Middle Kingdom (China), should be at the forefront of our thinking.
We are of the opinion that the alliance between China and Russia is seeking to undermine the world order in two fronts: First, via geostrategic acquisitions and operations (e.g. the Chinese soft power play with the Belt and Road Initiative, the Russian hard power play in Syria), and second, via an economic and financial war whose main target would be the undermining of the dollar. I don’t buy the scenario of dumping US bonds, because the U.S. president has more than enough power to freeze any accounts that attempt to disrupt the Treasuries market. If the alliance between China and Russia succeeds in undermining confidence in the dollar, then all-dollar denominated markets would be threatened with collapse (including of course the oil market), and the president’s power to freeze markets would be undermined as well.
The Chinese and the Russians are partnering in a strategic axis of convenience that tries to defy their history of conflicts and unite under the banner of undermining the US position in the world. In the first two decades of the 20th century both countries experienced chaos, as monarchies collapsed and civil wars erupted (in 1917 the Bolsheviks overthrew the Romanov dynasty that ruled Russia since 1613, and in 1911 the Qing dynasty collapsed). During the Chinese civil war, Stalin was hedging his bets supporting both Mao and Chiang Kai-Shek. The tension between Mao and the Soviet leaders lasted for 40 years (let’s not forget that Mao had accused the USSR of abandoning socialism for the sake of state capitalism. Still wondering what Xi has to say about that!). The two sides reconciled in May 1989. Needless to remind the readers of the massacre in Tiananmen Square the following month and the collapse of the USSR in 1991. That effort of reconciliation is at full display now.
The “Shanghai Five” (China, Russia, Kazakhstan, Kyrgyzstan, and Tajikistan) is a broader alliance and represents another version of the effort to create a counterbalance to the US, after Primakov’s efforts to create a strategic triangle with India, failed. For Putin, China is the only significant power he is left with in order to accomplish his goals. It’s a partnership of convenience in order to advance authoritarianism in both countries and silence democracy, freedom, and transparency while oppressing the minorities they don’t like in their territories.
The partnership involves an array of bilateral deals in energy, trade, border regulation, and of course military cooperation. Moreover, the alliance is mutually supportive at the Security Council over issues that involve Iran, Syria, North Korea, and other rogue nations. China is the second largest buyer of Russian military hardware. Once that hardware is bought, the Chinese implement their usual tactic of reverse engineering and selling that hardware on the world market. A couple of years ago, Russia started delivering Su-35S fighter jets and S-400 surface-to-air missiles, to China. The Eastern Siberia-Pacific Ocean pipeline (ESPO) is a major oil deal, and part of the a broader “loans for oil” program. The “Power of Siberia”, is another $400+ billion energy project between the two partners.
In an effort to demonstrate geostrategic power, the Shanghai Cooperation Organization (SCO) has been established, which is an important pillar in the Sino-Russian relationship. Its eight members count for 45% of the world’s population, 25% of the world’s GDP, and 80% of Eurasia’s landmass. Major efforts were made in order to keep the US out of it, while Putin and Xi executed an agreement regarding the integration of the Eurasian Economic Union (EEU) and Belt & Road Initiative (BRI). The Polar Silk Road (the old Northern Sea Route), is now part of the BRI.
As the alliance enables each other, they derail western efforts designed to bring humanitarian assistance and punish those who promote violence and ethnic cleansing. The aim is to manifest a broader commitment of rejecting the rule of law, throwing out the inconvenient balance of power, create a new reserve currency that will accommodate their goals of domination while advancing objectives of trade and energy. The joint military exercises (Vostok) is but a sideshow to the world that a new day will be dawning. Mutual facilitation of despotic regime is a threat to world peace, prosperity, and freedom.
I understand and respect attempts to drown the thorns with flowers. The problem is that flowers fade, but the thorns remain. The ladder has to climb to the realms of light.
Both Russians and Chinese have a long history of wonderful contributions to literature, arts, and the culture in general. Their people deserve much better.
Kleptocratic Authoritarianism and the Chinese Dragon
Author : John E. Charalambakis
Date : June 23, 2020
“President Putin is the leader of a great country who is influential around the world. He is my best, most intimate friend”, Xi Jinping, 2018
Hello darkness, I am still looking for useful idiots. The petrostate is at my disposal, so feudalism has been redefined. I no longer distribute parcels of land, but rather stakes in energy companies. The cabal from St. Petersburg is here to serve me. That part is known as “institutionalization of corruption.” Anyone available to advance my vision? My good strategic partner south of the border – who like me, desires to subjugate others and imprint on them an image of our own- and I, are forming an alliance and I don’t care if you call it an axis of convenience. The goal is global dominance and the destruction of the dollar as the world’s reserve currency. Creepy visions inspire us. Nightmares of empires gone, keep us up at night. The sound of silence scares us. Transparency is our enemy. Democracy is detestable. Visions of people talking without speaking undermine our totalitarianism. Ideas of having people hearing without listening is inconceivable. In the wells of silence, the drops of colored rain could create a flood, and we have no interest in building arks. We love imparting nations with tumors via local allies. Tumors like cancers grow. Annexation is my other name. Neon gods in the form of social media inspire me. There are so many idiots there. My news become their slogan. I told my strategic partner south of the border that we need a cavalry of hackers.
In continuation of two recent commentaries on China and the Global Balance of Power, in today’s commentary we discuss the implications of what we perceive to be an alliance between Russia and China. Given the number of articles written about the successes of the Putin regime, allow us to pose a few questions. Are those successes in reference to:
Certainly, the list can go on and on. However, having a clear understanding of the intentions behind the powers and/or the possible games that could be deployed in an effort to disrupt the world order and impose on it a balance of power that will advance the interests of kleptocratic authoritarianism in relation to the aspiration of the Middle Kingdom (China), should be at the forefront of our thinking.
We are of the opinion that the alliance between China and Russia is seeking to undermine the world order in two fronts: First, via geostrategic acquisitions and operations (e.g. the Chinese soft power play with the Belt and Road Initiative, the Russian hard power play in Syria), and second, via an economic and financial war whose main target would be the undermining of the dollar. I don’t buy the scenario of dumping US bonds, because the U.S. president has more than enough power to freeze any accounts that attempt to disrupt the Treasuries market. If the alliance between China and Russia succeeds in undermining confidence in the dollar, then all-dollar denominated markets would be threatened with collapse (including of course the oil market), and the president’s power to freeze markets would be undermined as well.
The Chinese and the Russians are partnering in a strategic axis of convenience that tries to defy their history of conflicts and unite under the banner of undermining the US position in the world. In the first two decades of the 20th century both countries experienced chaos, as monarchies collapsed and civil wars erupted (in 1917 the Bolsheviks overthrew the Romanov dynasty that ruled Russia since 1613, and in 1911 the Qing dynasty collapsed). During the Chinese civil war, Stalin was hedging his bets supporting both Mao and Chiang Kai-Shek. The tension between Mao and the Soviet leaders lasted for 40 years (let’s not forget that Mao had accused the USSR of abandoning socialism for the sake of state capitalism. Still wondering what Xi has to say about that!). The two sides reconciled in May 1989. Needless to remind the readers of the massacre in Tiananmen Square the following month and the collapse of the USSR in 1991. That effort of reconciliation is at full display now.
The “Shanghai Five” (China, Russia, Kazakhstan, Kyrgyzstan, and Tajikistan) is a broader alliance and represents another version of the effort to create a counterbalance to the US, after Primakov’s efforts to create a strategic triangle with India, failed. For Putin, China is the only significant power he is left with in order to accomplish his goals. It’s a partnership of convenience in order to advance authoritarianism in both countries and silence democracy, freedom, and transparency while oppressing the minorities they don’t like in their territories.
The partnership involves an array of bilateral deals in energy, trade, border regulation, and of course military cooperation. Moreover, the alliance is mutually supportive at the Security Council over issues that involve Iran, Syria, North Korea, and other rogue nations. China is the second largest buyer of Russian military hardware. Once that hardware is bought, the Chinese implement their usual tactic of reverse engineering and selling that hardware on the world market. A couple of years ago, Russia started delivering Su-35S fighter jets and S-400 surface-to-air missiles, to China. The Eastern Siberia-Pacific Ocean pipeline (ESPO) is a major oil deal, and part of the a broader “loans for oil” program. The “Power of Siberia”, is another $400+ billion energy project between the two partners.
In an effort to demonstrate geostrategic power, the Shanghai Cooperation Organization (SCO) has been established, which is an important pillar in the Sino-Russian relationship. Its eight members count for 45% of the world’s population, 25% of the world’s GDP, and 80% of Eurasia’s landmass. Major efforts were made in order to keep the US out of it, while Putin and Xi executed an agreement regarding the integration of the Eurasian Economic Union (EEU) and Belt & Road Initiative (BRI). The Polar Silk Road (the old Northern Sea Route), is now part of the BRI.
As the alliance enables each other, they derail western efforts designed to bring humanitarian assistance and punish those who promote violence and ethnic cleansing. The aim is to manifest a broader commitment of rejecting the rule of law, throwing out the inconvenient balance of power, create a new reserve currency that will accommodate their goals of domination while advancing objectives of trade and energy. The joint military exercises (Vostok) is but a sideshow to the world that a new day will be dawning. Mutual facilitation of despotic regime is a threat to world peace, prosperity, and freedom.
I understand and respect attempts to drown the thorns with flowers. The problem is that flowers fade, but the thorns remain. The ladder has to climb to the realms of light.
Both Russians and Chinese have a long history of wonderful contributions to literature, arts, and the culture in general. Their people deserve much better.