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Bit Tooth Energy: Tech Talk – Natural Gas, China and Russia in the post-Crimea time.

Bit Tooth Energy: Tech Talk – Natural Gas, China and Russia in the post-Crimea time..

TUESDAY, MARCH 25, 2014

The recent takeover of Crimea by Russia has given China a strengthened hand as it continues to negotiate with Gazprom over the supplies of natural gas for the next few years.

It was not that long ago that Gazprom was riding high around the world, as it supplied large quantities of its own and Turkmen gas to Europe, and was negotiating to sell more into China and Asia in general. Then Turkmenistan and China arranged their own deal, and with the construction of a direct pipeline between the two countries, suddenly the market was no longer running entirely Gazprom’s way. They could no longer mandate that Turkmenistan take the price that they offered at the time that Russia controlled all the pipelines that carried the gas to market. And with that change, and the changing natural gas market, so Gazprom’s fortunes have started to teeter.

At the same time the anticipated Russian market in the United States, which would have been supplied from newly developed Russian Artic reserves such as those in the Shtokman field are no longer needed, as the American shale gases have come onto the market in increasing quantities. The world has, in short, become a somewhat less favorable place for Gazprom and the Chinese have hesitated to commit to a further order of natural gas, in part because they anticipate getting a better deal for the fuel than Gazprom would like them to pay.

Russia would like, and is anticipating, that the deal for some 38 billion cubic meters/year of natural gas, starting in 2018 will be signed when President Putin visits China in May. (In context Russia, which supplies about 26% of European natural gas, sends them around 162 bcm per year). Negotiations over the sale of the gas have dragged on for years, having first started in 2004 but the major disagreement continues to be over price. At a time when Norway is seeing a peak in production and Qatar is moving more of its sales to Asia, Russia had seen an increase in European sales, and has been able to move that gas at a price of $387 per 1,000 cubic meters (or $10.54 per kcf/MMBtu. The price of such gas in the US is quite a bit cheaper.

Figure 1. Natural gas prices in the United States. (EIA )

Russia would like to get a price of around $400 per kcm ($10.89 per kcf) with the slight extra going to pay for the pipeline and delivery costs. Whether the two countries can come to an agreement on the price may well now depend on how vulnerable Russia really is to any pressure on its markets from other sources of natural gas. Japan, for example, is now considering re-opening its nuclear power stations, as the costs for imported fuel are having significant consequences on their attempts at economic growth.

Similarly there is talk that the United States may become a significant player on the world stage by exporting LNG as it moves into greater surplus at home, thereby providing another threat to Russian sales. Part of the problem with that idea comes from the costs of producing the gas, relative to the existing price being obtained for it, and part on the amount of natural gas viably available. Consider that, at present, some of the earlier shale gas fields, such as the Barnett, Fayetteville and Haynesville are showing signs of having peaked.

Figure 2. Monthly natural gas production from shale fields (EIA)

While production from the Marcellus continues to rise, there is some question as to whether the Eagle Ford is reaching peak productionalthough that discussion, at the moment relates more to oil production. However given that it is the liquid portion of the production that is the more profitable this still drives the question.

And in this regard, the rising costs of wells, against the more difficult to assure profits is beginning to have an impact on the willingness of companies in the United States to invest the large quantities of capital into new wells that is needed to sustain and grow production. A recent article in Rigzone took note that the major oil companies are rethinking their strategies of investment, with some reorganization of their plans in particular for investment in shale fields. This raises a question for the author:

Another question for the industry is who will supply the risk capital for exploratory drilling, both on and offshore, if the majors pull back their spending? Onshore, for the past few years, a chunk of that capital has been supplied by private equity investors who have supported exploration and production teams in start-up ventures. They have also provided additional capital to existing companies allowing them to purchase acreage or companies to improve their prospect inventory. Unfortunately, the results of the shale revolution have been disappointing, leading to significant asset impairment charges and negative cash flows as the spending to drill new wells in order to gain and hold leases has exceeded production revenues, given the drop in domestic natural gas prices. Will that capital continue to be available, or will it, too, begin demanding profits rather than reserve additions and production growth?

Before investors put up the money for new LNG plants they need to be assured that there will be a financial return for that investment. Given that it takes time for such a market to evolve, and given the need that Russia has to sustain its market and potentially to increase it, the volumes that the US might put into play are likely to be small, with little other than political impact likely.

If Russia recognizes this, and feels relatively confident that Europe must continue to buy natural gas from Gazprom, particularly with the current move by Europe away from other sources of fuel such as coal, then they are likely to be more resistant to bringing the price down for their Chinese customers. On the other hand if China thinks that it might be able to get a better deal from Iran, were sanctions to ease, or from other MENA countries, then – thinking perhaps that Russia needs the sale more – they might toughen their position and the price debate may continue.

It will be interesting to see if it resolves within the next few weeks, and if so, at what a price.

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Russia Is Slowly Turning The NatGas Tap Off To Europe | Zero Hedge

Russia Is Slowly Turning The NatGas Tap Off To Europe | Zero Hedge.

While Naftogaz (Ukraine’s gas pipeline operator) states that all gas transportation from Russia to Europe is running normally, Bloomberg reports that Russian natgas exports to Europe are declining.Shipments are down over 4% from the prior week and also lower to Ukraine. This ‘adjustment’ follows increased sanctions by the West as Medvedev’s notable statement this morning that Ukraine owes Russia $16bn.

NatGas output is tumbling

The good news:

Gazprom today said natgas transit to Europe via Ukraine, supplies for Ukrainian consumption  

But Pay Up…

Ukraine owes Russia $11b after collapse of 2010 deal, Russian Prime Minsiter Dmitry Medvedev says to President Vladimir Putin at Security Council meeting, according to transcript on Kremlin website.

 

Medvedev adds $3b Ukraine bonds bought in Dec., ~$2b debt to Gazprom for natgas supplies

 

NOTE: In 2010, Russia agreed to sell natgas at discount in exchange for extending lease to Black Sea naval port of Sevastopol in Crimea to 2042 from 2017

Or Else…

Russian natgas exports to Europe and Turkey, excl. former Soviet Union, declined to 405.3mcm as of March 22,  according to Bloomberg calculations based on preliminary data from Energy Ministry’s CDU-TEK unit.

 

Avg daily exports to region were ~457mcm in March, lower than yr earlier: calculations based on CDU-TEK data

 

Shipments March 16-22 were 3.04bcm, 4% decrease vs level in week ended March 15

It is too early to see a trend, but for now, the direction is not hopeful for Europe.

Furthermore, Gazprom has cut its Diesel output by the most in 7 months…

 

and then… (via NY Times),

Russia is now asking close to $500 for 1,000 cubic meters of gas, the standard unit for gas trade in Europe, which is a price about a third higher than what Russia’s gas company, Gazprom, charges clients elsewhere.

 

Russia says the increase is justified because it seized control of the Crimean Peninsula, where its Black Sea naval fleet is stationed, ending the need to pay rent for the Sevastopol base. The base rent had been paid in the form of a $100 per 1,000 cubic meter discount on natural gas for Ukraine’s national energy company, Naftogaz.

And if that’s not clear enough…

Russia Is Slowly Turning The NatGas Tap Off To Europe | Zero Hedge

Russia Is Slowly Turning The NatGas Tap Off To Europe | Zero Hedge.

While Naftogaz (Ukraine’s gas pipeline operator) states that all gas transportation from Russia to Europe is running normally, Bloomberg reports that Russian natgas exports to Europe are declining.Shipments are down over 4% from the prior week and also lower to Ukraine. This ‘adjustment’ follows increased sanctions by the West as Medvedev’s notable statement this morning that Ukraine owes Russia $16bn.

NatGas output is tumbling

The good news:

Gazprom today said natgas transit to Europe via Ukraine, supplies for Ukrainian consumption  

But Pay Up…

Ukraine owes Russia $11b after collapse of 2010 deal, Russian Prime Minsiter Dmitry Medvedev says to President Vladimir Putin at Security Council meeting, according to transcript on Kremlin website.

 

Medvedev adds $3b Ukraine bonds bought in Dec., ~$2b debt to Gazprom for natgas supplies

 

NOTE: In 2010, Russia agreed to sell natgas at discount in exchange for extending lease to Black Sea naval port of Sevastopol in Crimea to 2042 from 2017

Or Else…

Russian natgas exports to Europe and Turkey, excl. former Soviet Union, declined to 405.3mcm as of March 22,  according to Bloomberg calculations based on preliminary data from Energy Ministry’s CDU-TEK unit.

 

Avg daily exports to region were ~457mcm in March, lower than yr earlier: calculations based on CDU-TEK data

 

Shipments March 16-22 were 3.04bcm, 4% decrease vs level in week ended March 15

It is too early to see a trend, but for now, the direction is not hopeful for Europe.

Furthermore, Gazprom has cut its Diesel output by the most in 7 months…

 

and then… (via NY Times),

Russia is now asking close to $500 for 1,000 cubic meters of gas, the standard unit for gas trade in Europe, which is a price about a third higher than what Russia’s gas company, Gazprom, charges clients elsewhere.

 

Russia says the increase is justified because it seized control of the Crimean Peninsula, where its Black Sea naval fleet is stationed, ending the need to pay rent for the Sevastopol base. The base rent had been paid in the form of a $100 per 1,000 cubic meter discount on natural gas for Ukraine’s national energy company, Naftogaz.

And if that’s not clear enough…

U.S. could start energy war with Russia – Winnipeg Free Press

U.S. could start energy war with Russia – Winnipeg Free Press.

By: Washington Post

Posted: 03/23/2014 1:41 PM |

A woman holds a banner that reads:

Enlarge Image

A woman holds a banner that reads: “Putin is Occupier” during a rally against the breakup of the country in Simferopol, Crimea, Ukraine, Tuesday, March 11, 2014. (DARKO VOJINOVIC / THE ASSOCIATED PRESS FILES)

Debate has raged over whether the United States can fight Vladimir Putin on the Russian president’s most favourable ground: energy politics. It can, and it should, particularly because there’s an obvious path forward that coincides with American — indeed, world — economic interests. That path is lifting irrational restrictions on exports and making it easier to build natural gas export terminals.

For years, Putin has used his nation’s wealth of oil and natural gas as a cudgel to bully his neighbours. At present, the European Union’s large imports of Russian natural gas discourage a forceful Western response to Russia’s aggressive actions in Ukraine. Meanwhile, the United States is tapping massive reserves of unconventional natural gas. That has not only made the U.S. self-sustaining in gas, but also driven down the price of U.S. gas to a point well below what Europeans are paying for the Russian stuff. If the federal government allowed more of it to be liquefied and exported, would the Russians lose a share of the European market?

The story is more complicated than that. Russian gas, which doesn’t need to be liquefied to move (by pipeline) into the European market, would enjoy significant price advantages over imported U.S. gas. The interaction of private buyers and sellers would probably direct U.S. exports to places where gas is more profitable to sell, such as Japan and Korea. The result would be a bounty for the U.S. economy and an improved American trade deficit — but not much direct displacement of Russian gas in Europe.

But that’s also not the end of the story. The U.S. entry into the Asian market would diminish Russia’s opportunity to profit there, as it aims to do. Contributing to an already widening and more diverse global supply of liquefied natural gas (LNG) would also give European importers more flexibility in sourcing their fuel — from the United States, Qatar, or others — the sort of market conditions that have already enabled Europeans to renegotiate gas contracts with Russia. The Council on Foreign Relations’ Michael Levi points out that Putin might end up with an uncomfortable choice between maintaining market share in Europe and slashing his prices more.

Ramping up U.S. exports would take years, but the effects would not only be long-term, as some critics charge. Action that communicates a certain intent to allow more LNG exports would send a signal that “the U.S. is open for business,” as the Eurasia Group’s Leslie Palti-Guzman puts it. That could deter Putin from playing the energy card and help many buyers in negotiating long-term contracts.

The economic case for allowing natural gas exports is compelling on its own. Doing so would bring money into the country and uphold the vital principle that energy resources should flow freely around the globe, making the markets for the fuels the world economy needs as flexible and robust as possible. The more major suppliers there are following that principle, the less control predatory regimes such as Putin’s will have over the market.

Is an Economic War Replacing the Cold War?: Video – Bloomberg

Is an Economic War Replacing the Cold War?: Video – Bloomberg.

End Result: "The Total Devastation of Everything That You Know"

End Result: “The Total Devastation of Everything That You Know”.

SHTFplan-logo-350-1

Mac Slavo
March 22nd, 2014
SHTFplan.com

If you are an observer of the goings-on in the world and how the political, administrative and business elite operate, you have likely come to the conclusion that the whole situation is mind-boggling.

Millions of hard working Americans and our counterparts around the world alike sit at the very brink of an unprecedented economic collapse orchestrated by the financial and economic machinations of the privileged  few. They speak of belt tightening, the need for sacrifices and often mandate extreme taxation, promising that these strategies will make life better for everyone. Yet, while we struggle to put food on the table and keep roofs over our heads they enjoy lavish multi-million dollar vacations, state dinners, and unfathomable wealth as they indenture the rest of us and our progeny to lifetimes of servitude.

On the political front, leaders from the United States, Europe, China, Russia, Iran and just about every other nation on earth often speak of cooperation and are nominated for the highest of peace honors, while behind the scenes they mobilize armies and spew rhetoric whose outcome can only lead to widespread conflict. They seem completely devoid of consideration for the billions of lives that will be affected should the world, once again, be thrust into war.

At every turn the people are being deceived and led to slaughter like sheep.

In his most recent commentary Charlie McGrath of Wide Awake News puts things into perspective, warning that it is these very behaviors of the elite and the apathy of the American people that will invariably lead to America’s apocalyptic demise:


(Via the Rense Radio Network)

The hypocrisy… the outright, no holds barred in your face deception by government and by the upper echelons of the political elite class and by the upper echelons of the financial class… the ruling elite… the brazen attack on the truth is beyond comprehension…

It’s hard to even put together these commentary videos anymore… too look at the current state of our country… the path we’re on… our financial devastation that’s being laid out before us… the pain and the suffering that’s going to come with that final devastation that is yet to be realized by the majority of the people of this country but will be realized…

The stage is being set for never ending conflict… never ending control being given to the military and security industrial complex.

To sit back and watch this happen… it’s to the point that I just don’t understand…

Where are my fellow Americans? Where are you?

Where is the outrage by the people in this country?

Are we so simply bought off by bread and circus that as long as we have some kind of regular programming on television or the beer is cold we’re not going to stand up and say enough is enough?

When are we going to realize? Is it going to be after the lights go out? After the destruction of our dollar and our way of life?

….Every single day that passes by you’re losing more and more of your freedom.

We’re giving it away to people who could care less about you, your family or your future.

…There is no other path this will lead to other than the total devastation of everything that you know.

As much as we’d like to believe things are going to change, it’s time we accept the likelihood of a continued degradation of life in America as we know it. Unless just about every single politician in Congressional buildings around the country is immediately recalled and the founding principles outlined in the U.S. Constitution restored, we will continue to slide into a calamity unlike anything we have seen before in this country.

It’s time to begin taking immediate steps to prepare for the worst, because as you well know, the people in charge already have a plan in place, and it most certainly will not benefit you and your family.

End Result: “The Total Devastation of Everything That You Know”

End Result: “The Total Devastation of Everything That You Know”.

SHTFplan-logo-350-1

Mac Slavo
March 22nd, 2014
SHTFplan.com

If you are an observer of the goings-on in the world and how the political, administrative and business elite operate, you have likely come to the conclusion that the whole situation is mind-boggling.

Millions of hard working Americans and our counterparts around the world alike sit at the very brink of an unprecedented economic collapse orchestrated by the financial and economic machinations of the privileged  few. They speak of belt tightening, the need for sacrifices and often mandate extreme taxation, promising that these strategies will make life better for everyone. Yet, while we struggle to put food on the table and keep roofs over our heads they enjoy lavish multi-million dollar vacations, state dinners, and unfathomable wealth as they indenture the rest of us and our progeny to lifetimes of servitude.

On the political front, leaders from the United States, Europe, China, Russia, Iran and just about every other nation on earth often speak of cooperation and are nominated for the highest of peace honors, while behind the scenes they mobilize armies and spew rhetoric whose outcome can only lead to widespread conflict. They seem completely devoid of consideration for the billions of lives that will be affected should the world, once again, be thrust into war.

At every turn the people are being deceived and led to slaughter like sheep.

In his most recent commentary Charlie McGrath of Wide Awake News puts things into perspective, warning that it is these very behaviors of the elite and the apathy of the American people that will invariably lead to America’s apocalyptic demise:


(Via the Rense Radio Network)

The hypocrisy… the outright, no holds barred in your face deception by government and by the upper echelons of the political elite class and by the upper echelons of the financial class… the ruling elite… the brazen attack on the truth is beyond comprehension…

It’s hard to even put together these commentary videos anymore… too look at the current state of our country… the path we’re on… our financial devastation that’s being laid out before us… the pain and the suffering that’s going to come with that final devastation that is yet to be realized by the majority of the people of this country but will be realized…

The stage is being set for never ending conflict… never ending control being given to the military and security industrial complex.

To sit back and watch this happen… it’s to the point that I just don’t understand…

Where are my fellow Americans? Where are you?

Where is the outrage by the people in this country?

Are we so simply bought off by bread and circus that as long as we have some kind of regular programming on television or the beer is cold we’re not going to stand up and say enough is enough?

When are we going to realize? Is it going to be after the lights go out? After the destruction of our dollar and our way of life?

….Every single day that passes by you’re losing more and more of your freedom.

We’re giving it away to people who could care less about you, your family or your future.

…There is no other path this will lead to other than the total devastation of everything that you know.

As much as we’d like to believe things are going to change, it’s time we accept the likelihood of a continued degradation of life in America as we know it. Unless just about every single politician in Congressional buildings around the country is immediately recalled and the founding principles outlined in the U.S. Constitution restored, we will continue to slide into a calamity unlike anything we have seen before in this country.

It’s time to begin taking immediate steps to prepare for the worst, because as you well know, the people in charge already have a plan in place, and it most certainly will not benefit you and your family.

Another Escalation: US Freezes Diplomatic Relations With Syria, Orders Non-US Personnel To Leave Country | Zero Hedge

Another Escalation: US Freezes Diplomatic Relations With Syria, Orders Non-US Personnel To Leave Country | Zero Hedge.

Putin 2 – Obama 0, which means it is time to go back to the one place where it all started last year, and where Putin had his most resounding victory over the US foreign policy apparatus (at least until the Ukraine, where we trampled not only over Obama’s red line… again… but where nobody quite explained the “costs” to the ex-KGB leader): Syria.  Sure enough, with the US unable to respond in Crimea, has decided to take its fight back to where Europe’s natgas reliance on Gazprom product was first truly exposed.

BREAKING: US freezes diplomatic, consular relations with Syria; Orders non-US personnel to leave country.

— The Associated Press (@AP) March 18, 2014

The US can order non-US personnel around? More from Reuters:

  • U.S.
    IMMEDIATELY SUSPENDS OPERATIONS OF SYRIAN EMBASSY IN WASHINGTON, AS
    WELL AS HONORARY CONSULATES IN MICHIGAN AND TEXAS – STATE DEPARTMENT
  • U.S.
    SPECIAL ENVOY FOR SYRIA SAYS ‘UNACCEPTABLE’ FOR INDIVIDUALS APPOINTED
    BY ASSAD REGIME TO CONDUCT DIPLOMATIC, CONSULAR OPERATIONS IN U.S.

Regardless, if the bloodless Russian annexation of Crimea wasn’t enough to push the S&P to new all time highs, this surely will.

Another Escalation: US Freezes Diplomatic Relations With Syria, Orders Non-US Personnel To Leave Country | Zero Hedge

Another Escalation: US Freezes Diplomatic Relations With Syria, Orders Non-US Personnel To Leave Country | Zero Hedge.

Putin 2 – Obama 0, which means it is time to go back to the one place where it all started last year, and where Putin had his most resounding victory over the US foreign policy apparatus (at least until the Ukraine, where we trampled not only over Obama’s red line… again… but where nobody quite explained the “costs” to the ex-KGB leader): Syria.  Sure enough, with the US unable to respond in Crimea, has decided to take its fight back to where Europe’s natgas reliance on Gazprom product was first truly exposed.

BREAKING: US freezes diplomatic, consular relations with Syria; Orders non-US personnel to leave country.

— The Associated Press (@AP) March 18, 2014

The US can order non-US personnel around? More from Reuters:

  • U.S.
    IMMEDIATELY SUSPENDS OPERATIONS OF SYRIAN EMBASSY IN WASHINGTON, AS
    WELL AS HONORARY CONSULATES IN MICHIGAN AND TEXAS – STATE DEPARTMENT
  • U.S.
    SPECIAL ENVOY FOR SYRIA SAYS ‘UNACCEPTABLE’ FOR INDIVIDUALS APPOINTED
    BY ASSAD REGIME TO CONDUCT DIPLOMATIC, CONSULAR OPERATIONS IN U.S.

Regardless, if the bloodless Russian annexation of Crimea wasn’t enough to push the S&P to new all time highs, this surely will.

Two Steps Forward, One Step Back — Paul Craig Roberts – PaulCraigRoberts.org

Two Steps Forward, One Step Back — Paul Craig Roberts – PaulCraigRoberts.org.

Two Steps Forward, One Step Back

Paul Craig Roberts

Washington’s plan to seize Ukraine and to evict Russia from its Black Sea naval base has come amiss. But as Lenin said, “two steps forward, one step back.”

Do you remember all the tough talk coming from John Kerry, the White House Fool, Hilary Clinton, and the lickspittle Merkel about the harsh sanctions that would “badly damage” the Russian economy unless Russia prevented the referendum vote in Crimea? Well, it was all bullshit, more hot air from the White House sock puppet and the lickspittle German chancellor who is a disgrace to the German nation. As the Russians kept telling John Kerry, sanctions on Russia would destroy Europe and do little damage to Russia.

I wish the Russians had kept this to themselves. I was looking forward to the Washington morons destroying NATO by closing down the European economy.

Of course, after pretending that they were macho tough guys, something that Washington’s presstitute media could hype as sanctions had to be imposed, so Washington came up with sanctions, not on Russia, but on eleven individuals: the deposed Ukrainian president, an advisor to the deposed president, 2 Crimean officials, and 7 Russians.

The choice of the officials is an utter mystery. The seven Russians are a Putin aid, a Putin adviser, four members of the Russian parliament (Duma) and a deputy prime minister. What any of these people had to do with the referendum in Crimea, no one knows.

Moreover, the sanctions only apply to foreign bank accounts that these 11 individuals might have outside Russia. Most likely, that means only the deposed Ukrainian president, if we are to believe all the propaganda about him. Other reports say that the sanctions are only for the next six months.

If the Washington and EU criminals steal any money from these persons, the Russian central bank can replenish their stolen accounts.

The people who decided that Crimea would disassociate from Ukraine and return to Russia were the people themselves. Under the wording of Obama’s stupid sanctions, his sanctions should apply to the Crimean people who voted to disassociate from the US stooge government in Kiev.

Additionally, Obama’s sanctions apply to himself and to his regime and to its NATO puppets as it was the West that overthrew the elected government of Ukraine, not Russia or Crimea. The Americans, of course, never apply law to themselves.

In other words, the sanctions are totally meaningless. Yet, the White House Fool declared: “If Russia continues to interfere in Ukraine, we stand ready to impose further sanctions.”

Obama’s hypocrisy makes a person want to puke. It is the White House Fool who is interfering in Ukraine. It was Washington that financed and organized the overthrow of the elected Ukraine government, using well organized and well armed neo-nazis to intimidate the unarmed police and ruling party, thus clearing the way for Washington to set up an unelected government of its well-paid stooges.

What the incompetent White House Fool overlooked is that southern and eastern Ukraine are Russian, not Ukrainian, so the fool’s coup has caused Crimea to depart and is causing widespread protests in eastern Ukraine against Washington’s stooge unelected government in Kiev. Washington’s stooge Kiev government has appointed unelected Ukrainian multibillionaire oligarchs, who have their own private security forces, as mayors of the Russian cities to put down the protests. If the oligarchs use violence against the Russian people, the likely result will be that the Russian Army will take control of eastern Ukraine, which in every essential way is Russian.

If eastern Ukraine returns to Russia, Washington will be left with the ultra-nationalists of western Ukraine, people who fought for Hitler during World War 2. The EU doesn’t want ultra-nationalists as the EU is busy stamping out nationalism and the sovereignty of European countries. Nevertheless, Washington will have gained a strategic advantage over Moscow, as Washington can place anti-ballistic missile and other military bases on western Ukraine’s border with Russia, thus completing Washington’s encirclement of Russia with hostile military and missile bases.

Russia will neutralize the US bases by targeting them with Iskander missiles, which cannot be intercepted by ABMs.

All that the White House Fool will have achieved is to further make clear to Russia, and to China, that Washington has both on its target list, because both are in the way of Washington’s world hegemony.

One can only wonder why Putin doesn’t preempt the coming US military attack on Russia by destroying NATO economically without firing a shot. All Putin needs to do is to cut Europe off from energy. It would take Washington three years to create the capability to deliver US natural gas, achieved by fracking’s destruction of US water supplies, to Europe. By that time NATO governments would likely have been overthrown by mass unemployment and economic suffering. Putin could also seize all foreign assets in Russia and rapidly complete the arrangements with China, India, Brazil, and South Africa to abandon the use of the US dollar in international settlements.

The US dollar as world reserve currency is the source of American imperialism. The five countries that comprise the BRICS have half of the world’s population. They can conduct their economic affairs without the dollar.

The world needs to understand that the neoconservative US government is the Third Reich on steroids. It is a malevolent force with no sense of justice or respect for truth, law, or human life. Just ask the residents of Iraq, Afghanistan, Libya, Syria, Palestine, Pakistan, Yemen, Somalia, Lebanon, Honduras, Venezuela, Cuba, Iran. Even the deluded western Ukrainians will soon catch on.

Obama himself declared that the US is “the exceptional nation.” This is the neoconservatives version of Hitler’s declaration that the German nation was exceptional and, therefore, above all others. The only difference between Washington and National Socialist Germany is that Washington has a far more powerful police state and nuclear weapons.

The hubris and arrogance that arises from Washington’s belief that it is the government of the “indispensable and exceptional nation” means Washington has no respect for any other country, nor for law whether its own or international. Washington can invade countries without cause, a war crime. Washington can kidnap and torture people, a crime under US and International law. Washington can ignore the self-determination of peoples, such as Crimeans. Who are mere Crimeans to vote on their own future without Washington’s consent, without Washington determining the outcome? Washington declares the Crimean people’s self-determination “illegitimate and illegal,” and refuses to recognize self-determination, while pretending to be the home of “freedom and democracy.”

No government in human history can come close to the hypocrisy and malevolence of Washington. Armed with nuclear weapons and a military doctrine of pre-emptive nuclear first strike, Washington alone stands as the threat to life on earth.

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