Putin is actually making a lot of sense
We are normally subjected to a news media blackout concerning what our main global political rivals have to say. So it's sort of refreshing when anything at all is allowed through the corporate media censors.
“The pandemic has been replaced by new challenges of a global nature, carrying a threat to the whole world, I’m talking about the sanctions rush in the West and the West’s blatantly aggressive attempts to impose their modus vivendi on other countries, to take away their sovereignty, to submit them to their will,” Putin told delegates at Russia’s Eastern Economic Forum in the port city of Vladivostok on Russia’s Pacific coast.
“The high level of industrial development in Europe, the standard of living, social and economic stability — all of this is being thrown onto the fire of sanctions,” he added.
“They are being wasted on orders from Washington in the name of so-called Euro-Atlantic unity. Though in reality, they are basically being sacrificed in the name of preserving the U.S. dictatorship in global affairs,” Putin said.
Hmmm. Yeah, that sounds about right. I can't find any flaws in his thinking.
Russia’s president, who has been largely ostracized by developed Western countries following Moscow’s unprovoked invasion of Ukraine, said he believed the current situation had been precipitated by the “slipping dominance” of the U.S. in global politics and economics.
Describing the Asia-Pacific region as a “magnet” for human resources, capital and production capacities, Putin said that “despite that, Western countries are trying to maintain the old world order that only benefited them.”
Have you noticed that our news media always includes the adjective of "unprovoked" when they say "invasion of Ukraine"? But in two decades they never used the "unprovoked" adjective to our invasions and bombings of Afghanistan, Iraq, Pakistan, Libya, Somalia, Yemen, and Syria?
“Western countries have undermined the key pillars of the world economic system built over centuries,” Putin said.
“We have seen the loss in trust in the dollar, and the euro and the pound as the currencies in which you can carry out transactions, hold deposits or assets and that is why, step by step, we are moving away from the use of these unreliable, compromised currencies,” he said.
Washington's response to this was to point out that Russia is propping up their economy with "budget deficit at more than $15 billion in the month of July alone."
To put that into perspective, the U.S. budget deficit in July was $211 Billion, which was dramatically down from $302 Billion last year.
But let's go back to the "key pillars of the world economic system".
The U.S. and Europe has decided that it is going to tell Russia what it wants to pay for Russia's oil. In other words, a buyer's cartel.
The Group of Seven is trying to find ways to limit Russia's lucrative oil export revenue in the wake of its invasion of Ukraine in February. Several different countries have banned imports of Russian crude and fuel, but Moscow has managed to maintain its revenues through increased crude sales to Asia, particularly China and India.
The price cap's level is unclear, and U.S. and EU officials have not specified a numeric range. However, extrapolating from recent U.S. guidance suggests that it could be set at around $60 a barrel.
A buyer's cartel is not without precedent. Two examples of working buyer's cartels are Walmart and Amazon. Both of those companies can dictate terms and prices on producers of goods, even to the point of driving some manufacturers out of business if they don't play ball.
However, this only works if a) you are the largest buyers, and b) there isn't "leakage" i.e. ways of getting around your rules.
The strength of any price cap may turn on participation from China and India, which have stepped up their purchases of discounted Russian crude as others have banned Russian barrels.
Deputy Treasury Secretary Wally Adeyemo on Thursday told Yahoo! News that India had agreed to continue talks about whether to join, and Washington hoped China would also consider it.
China is a) the largest buyer of oil in the world, and b) NEVER, EVER going to join this cartel. It is laughable that Washington can threaten China militarily and impose sanctions on it, and then expect them to play ball.
China is going to prop up Russia for the EXACT same reason the U.S. is propping up Ukraine - a common enemy.
Meanwhile, India has a) dramatically increased its purchases of Russian oil in 2022, and b) just got done doing war games with the Russian military. Do they seriously think that India is about to turn on Russia?
PM Modi's answer was clear and logical.
Speaking to CNBC Monday, India’s Petroleum Minister Shri Hardeep Singh Puri said the country would consider the proposals “very carefully,” but added that he felt no moral obligation to sign up.
“No, there’s no conflict. I have a moral duty to my consumer. Do I as a democratically elected government want a situation where the petrol pump runs dry?,” Puri told CNBC’s Hadley Gamble at Gastech 2022 in Milan, Italy.
...During an online address to the Eastern Economic Forum in Vladivostok, Russia, Modi spoke of a “special partnership” between the two countries and expressed particular interest in bolstering their cooperation on energy and coking coal.