DON’T SLEEP ON THIS CHINA-RUSSIA GAS DEAL

 

 

Gazprom CNPC deal

Image: RIA Novosti/Alexei Druzhinin

Don’t let the mainstream media downplay the 30-year, USD 400 billion natural gas deal signed this week between Russia’s Gazprom and China’s CNPC. This is a big, friggin’ deal, and we may be witnessing the start of a long-term inflexion of how the game of international politics will be played and won. Or perhaps lost.

 

Here are my quick impressions.

 

We now have codified confirmation that the sanctions against Russia imposed by the US and a reluctant EU are meaningless, and that Russia cannot be isolated by a world where the isolators’ view of the world only includes The West…

 

Either the Cold War time-warped Senator John McCain has been right all along, or the American Neo-Cons and Neo-Liberals have finally come out of the closet to declare themselves as lovers…

 

…or more put another way, we can see the Cold War not only has never died, but we can also view its true identity: a clever, decades-old marketing mind trick whose purpose has been to take your mind from the real issue of whose version of “The Dolla” will rule the planet…

 

Given current US policy toward Iran’s nuclear program, China’s growing power in Asia and elsewhere, and Russia’s Crimea focus, you can only think that the US really wants these three countries to become closer friends. I guess it’s easier to market Cold War, Part Deux that way…

 

…which is why you shouldn’t think that economic development between The Two Countries Formerly Known as Members of the Red Menace will stop at a gas pipeline.  The whole economic empowerment script may be rewritten between China, Russia, Central Asia, and then possibly extend to the Middle East. Perhaps even Europe

 

Speaking of development, an economically-strong region of the world that can confidently state someday it doesn’t need a US bank or tank is one of America’s worst nightmares…

 

China and Russia will invest a combined $77 billion in the 30-year gas project, signaling an interest in long-term economic growth through large bets. Conversely, the US seems too engrossed in the short-term trough of austerity, IMF conditionality policies and guns…

 

Let’s rap about guns for a moment. The US is spreading plenty of hardware across a broad range of theatres to fight or contain its enemies: Iraq and Afghanistan; Iran; Russia; Libya; Middle East in general; the famed Asian pivot against China; Africa-wide anti-Al-Qaeda campaigns; Syria. This is a huge amount of money being spent for a nation supposedly concerned about debts and deficits, except the US has been able to print money to finance these adventures…

 

However, this gas deal – combined with the other economic development deals that will likely happen in the region during the next few years – can eventually lead to the creation of America’s biggest fear of all

 

And then, it’s game over…

 

Song currently stuck in my head: “momma’s groove” – osunlade

This entry was posted in Economics, Politics, War and tagged , , , , , , . Bookmark the permalink.

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