What The BRICS Plus
Germany Are Really Up To?
By Pepe Escobar
March 05, 2015 "ICH"
- "RT"
- Winston Churchill once said, “I feel
lonely without a war.” He also badly missed
the loss of empire. Churchill’s successor –
the ‘Empire of Chaos’ – now faces the same
quandary. Some wars – as in Ukraine, by
proxy – are not going so well.
And the loss of empire
increasingly manifests itself in myriad
moves by selected players aiming towards a
multipolar world.
So no wonder US ‘Think
Tankland’ is going bonkers, releasing wacky
CIA-tinted
“forecasts” where Russia is bound to
disintegrate, and China is turning into a
communist dictatorship. So much (imperial)
wishful thinking, so little time to prolong
hegemony.
The acronym that all these
“forecasts” dare not reveal is BRICS
(Brazil, Russia, India, China, and South
Africa). BRICS is worse than the plague as
far as the ‘Masters of the Universe’ that
really control the current - rigged - world
system are concerned. True, the BRICS are
facing multiple problems. Brazil at the
moment is totally paralyzed; a long,
complex, self-defeating process, now coupled
with intimations of regime change by local
‘Empire of Chaos’ minions. It will take
time, but Brazil will rebound.
That leaves the “RIC” –
Russia, India and China - in BRICS as the
key drivers of change. For all their
interlocking discrepancies, they all agree
they don’t need to challenge the hegemon
directly while aiming for a new multipolar
order.
The BRICS New Development
Bank (NDB) – a key alternative to the IMF
enabling developing nations to get rid of
the US dollar as a reserve currency – will
be operative by the end of this year. The
NDB will finance infrastructure and
sustainable development projects not only in
the BRICS nations but other developing
nations. Forget about the Western-controlled
World Bank, whose capital and lending
capacity are never increased by the
so-called Western “powers.” The NDB will be
an open institution. BRICS nations will keep
55 percent of the voting power, and outside
their domain no country will be allowed more
than 7 percent of votes. But crucially,
developing nations may also become partners
and receive loans.
Damn those
communists
A tripartite entente
cordiale is also in the making. Indian Prime
Minister Narendra Modi will be in China next
May – and ‘Chindia’ will certainly engage in
a breakthrough concerning their bitter
territorial disputes. As much as Delhi has a
lot to benefit from China’s massive capital
investment and exports, Beijing wants to
profit from India’s vast market and
technology savvy. In parallel, Beijing has
already volunteered economic help to Russia
– if Moscow asks for it – on top of their
evolving strategic partnership.
The US “pivoting to Asia”
– launched at the Pentagon – is all dressed
up with no place to go. Bullying Southeast
Asia, South Asia and, for that matter, East
Asia as a whole into becoming mere ‘Empire
of Chaos’ vassals – and on top of it
confronting China - was always a
non-starter. Not to mention believing in the
fairy tale of a remilitarized Japan able to
“contain” China.
Isolating the “communist
dictatorship” won’t fly. Just watch, for
instance, the imminent high-speed rail link
between Kunming, in Yunnan province, and
Singapore, traversing a key chunk of a
Southeast Asia which for Washington would
never qualify to be more than a bunch of
client states. The emerging 21st century
Asia is all about interconnection; and the
inexorable sun in this galaxy is China.
As China has embarked in
an extremely complex tweaking of its
economic development model, as I outlined
here, China’s monopoly of low-end
manufacturing – its previous industrial base
– is migrating across the developing world,
especially around the Indian Ocean basin.
Good news for the Global South – and that
includes everyone from African nations such
as Kenya and Tanzania to parts of Southeast
Asia and Latin America.
Of course the ‘Empire of
Chaos’, business-wise, won’t be thrown out
of Asia. But its days as an Asian hegemon,
or a geopolitical Mob offering “protection”,
are over.
The Chinese remix of Go
West, Young Man – in fact go everywhere –
started as early as 1999. Of the top 10
biggest container ports in the world, no
less than 7 are in China (the others are
Singapore, Rotterdam, and Pusan in South
Korea). As far as the 12th Chinese 5-year
plan – whose last year is 2015 – is
concerned, most of the goals of the seven
technology areas China wanted to be in the
leading positions have been achieved, and in
some cases even superseded.
The Bank of China will
increasingly let the yuan move more freely
against the US dollar. It will be dumping a
lot of US dollars every once in a while. The
20-year old US dollar peg will gradually
fade. The biggest trading nation on the
planet, and the second largest economy
simply cannot be anchored to a single
currency. And Beijing knows very well how a
dollar peg magnifies any external shocks to
the Chinese economy.
Sykes-Picot is us
A parallel process in
Southwest Asia will also be developing; the
dismantling of the nation-state in the
Middle East – as in remixing the Sykes-Picot
agreement of a hundred years ago. What a
stark contrast to the return of the
nation-state in Europe.
There have been rumblings
that the remixed Sykes is Obama and the
remixed Picot is Putin. Not really. It’s the
‘Empire of Chaos’ that is actually acting as
the new Sykes-Picot, directly and indirectly
reconfiguring the “Greater Middle East.”
Former NATO capo Gen. Wesley Clark has
recently “revealed” what everyone already
knew; the ISIS/ISIL/Daesh fake Caliphate is
financed by “close allies of the United
States,” as in Saudi Arabia, Qatar, Turkey
and Israel. Compare that with Israeli
Defense Minister Moshe Yaalon admitting that
ISIS “does not represent a threat to Israeli
interests.” Daesh does the unraveling of
Sykes-Picot for the US.
The ‘Empire of Chaos’
actively sought the disintegration of Iraq,
Syria and especially Libya. And now, leading
the House of Saud, “our” bastard in charge
King Salman is none other than the former,
choice jihad recruiter for Abdul Rasul
Sayyaf, the Afghan Salafist who was the
brains behind both Osama bin Laden and
alleged 9/11 mastermind Khalid Sheikh
Mohammad.
This is classic ‘Empire of
Chaos’ in motion (exceptionalists don’t do
nation building, just nation splintering).
And there will be plenty of nasty,
nation-shattering sequels, from the
Central Asian stans to Xinjiang in
China, not to mention festering, Ukraine,
a.k.a Nulandistan.
Parts of Af-Pak could well
turn into a branch of ISIS/ISIL/Daesh right
on the borders of Russia, India, China, and
Iran. From an ‘Empire of Chaos’ perspective,
this potential bloodbath in the “Eurasian
Balkans” – to quote eminent Russophobe Dr.
Zbig “Grand Chessboard” Brzezinski – is the
famous “offer you can’t refuse.”
Russia and China,
meanwhile, will keep betting on Eurasian
integration; strengthening the Shanghai
Cooperation Organization (SCO) and their own
internal coordination inside the BRICS; and
using plenty of intel resources to go after
The Caliph’s goons.
And as much as the Obama
administration may be desperate for a final
nuclear deal with Iran, Russia and China got
to Tehran first. China’s Foreign Minister
Wang Yi was in Tehran two weeks ago;
stressing Iran is one of China’s “foreign
policy priorities” and of great “strategic
importance.” Sooner rather than later Iran
will be a member of the SCO. China already
does plenty of roaring trade with Iran, and
so does Russia, selling weapons and building
nuclear plants.
Berlin-Moscow-Beijing?
And then there’s the
German question.
Germany now exports 50
percent of its GDP. It used to be only 24
percent in 1990. For the past 10 years, half
of German growth depended on exports.
Translation: this is a giant economy that
badly needs global markets to keep
expanding. An ailing EU, by definition, does
not fit the bill.
German exports are
changing their recipient address. Only 40
percent - and going down – now goes to the
EU; the real growth is in Asia. So Germany,
in practice, is moving away from the
eurozone. That does not entail Germany
breaking up the euro; that would be
interpreted as a nasty betrayal of the
much-lauded “European project.”
What the trade picture
unveils is the reason for Germany’s hardball
with Greece: either you surrender,
completely, or you leave the euro. What
Germany wants is to keep a partnership with
France and dominate Eastern Europe as an
economic satellite, relying on Poland. So
expect Greece, Spain, Portugal and Italy to
face a German wall of intransigence. So much
for European “integration,” it works as long
as Germany dictates all the rules.
The spanner in the works
is that the double fiasco Greece + Ukraine
has been exposing. Berlin as an extremely
flawed European hegemon – and that’s quite
an understatement. Berlin suddenly woke up
to the real, nightmarish possibility of a
full blown, American-instigated war in
Europe’s eastern borderlands against Russia.
No wonder Angela Merkel had to fly to Moscow
in a hurry.
Moscow – diplomatically –
was the winner. And Russia won again when
Turkey – fed up with trying to join the EU
and being constantly blocked by, who else,
Germany and France – decided to pivot to
Eurasia for good, ignoring NATO and
amplifying relations with both Russia and
China.
That happened in the
framework of a major ‘Pipelineistan’
game-changer. After Moscow cleverly
negotiated the realignment of South Stream
towards Turk Stream, right up to the Greek
border, Putin and Greek Prime Minister
Tsipras also agreed to a pipeline extension
from the Turkish border across Greece to
southern Europe. So Gazprom will be firmly
implanted not only in Turkey but also
Greece, which in itself will become mightily
strategic in European ‘Pipelineistan’.
So Germany, sooner or
later, must answer a categorical imperative
- how to keep running massive trade
surpluses while dumping their euro trade
partners. The only possible answer is more
trade with Russia, China and East Asia. It
will take quite a while, and there will be
many bumps on the road, but a
Berlin-Moscow-Beijing trade/commercial
axis – or the “RC” in BRICS meet Germany -
is all but inevitable.
And no, you won’t read
that in any wacky US ‘Think Tankland’
“forecast.”
Pepe Escobar is the roving
correspondent for Asia Times/Hong Kong, an
analyst for RT and TomDispatch, and a
frequent contributor to websites and radio
shows ranging from the US to East Asia.