21.11.2022 Author: Viktor Mikhin

Background to current US policy in Europe

It is said not in vain that one man’s problem is another man’s opportunity. And the military actions in Ukraine against Russia, unleashed by the US and NATO, has clearly demonstrated this. Every day there is more and more evidence to show what huge dividends the US tycoons are reaping from the policies that the current President Joe Biden is pursuing for their benefit alone. Suffice it to say that Washington has already made tens of billions of dollars from the military actions it has unleashed in Ukraine. Not to mention the distraction from US domestic issues in financial, economic and politico-racial fields, that the White House is using against this backdrop.

The US instigated this armed conflict, a conclusion that most political analysts are now coming to. Its aim is to force Europe to submit to US sanctions against Russia and stop buying cheap Russian natural gas. Washington can now sell huge quantities of liquefied gas to Europe at its own prices, and there is no price cap on US hydrocarbons, unlike Russian hydrocarbons, and it is unlikely there will be one. Europe’s economy has suffered a blow, and vast wealth has migrated from Europe to the US, allowing US leaders to maintain their dominant position in the EU.

Ensuring control over Europe is a major strategic imperative for the US. Since the EU has a population of 450 million, while the US population is only 330 million, and their economies are comparable in size, the EU is theoretically in a position to break free from the US and assert itself as an equal or greater superpower on the world stage. A truly independent Europe would prefer to make mutually beneficial trade deals with Russia, China and the rest of Eurasia, pushing back the US and ending US imperial domination of the planet.

It is only natural that the US does not want this to happen. By implementing its divide-and-conquer strategy, Washington is preventing Europe from achieving the cohesion and economic strength that would enable it to free itself from the US occupation that has persisted since after the World War II. Inflation in Germany reached double digits in October for the first time since 1990. Italy is also experiencing the highest inflation in 40 years. The rest of the Eurozone is also suffering. The source of the European crisis is the rise in energy prices caused by US sanctions against Russia. Businesses that produce goods and services have to pay more for energy, and they pass the costs on to consumers. Now most of the extra money paid for what has become ultra-expensive energy goes straight into US coffers. This is the main reason why the euro is falling against the dollar. Furthermore, the dollar has historically been strong in times of panic or uncertainty, and the US has a habit of deliberately provoking panic and uncertainty by organizing wars and crises, of which there have been many examples.

The EU is not an ally of the US, but a coalition of vassal states that have been under US military and economic occupation since the end of World War II. The US committed a holocaust against Germany during and immediately after that war, bombing entire cities where only civilians lived, starving millions of German prisoners of war and civilians during the first few years of the occupation.  The mainstream media and academia, owned by the Americans and their satellites, fabricated a story of a mythical World War II victor that essentially turned reality upside down and portrayed the US as a generous rebuilder of Germany through the Marshall Plan. But the reality is that the Marshall Plan was only implemented after the Morgenthau Plan to kill millions of Germans had done its bloody work.

The US is far from being a generous ally. Instead, it has always been and remains a selfish occupier of Europe. The current US-induced destruction of Europe, based on depriving EU countries of cheap energy in order to damage them economically and subjugate them politically, could be called the new Morgenthau Plan. Nevertheless, the United States may have to provide aid packages or loans to help the EU escape hunger and frost this winter. If this happens, the motives will not be altruistic. Instead, Washington will seek to prevent Europeans from overthrowing the US occupation and exercising control over their own destiny.

Before the hostilities unleashed by the US in Ukraine, Russia provided the lion’s share of Europe’s cheap energy imports. However, by artificially supporting the armed conflict, which is now in its ninth month, Washington has broken this partnership, and gas is no longer flowing through Nord Stream.  Businesses across Europe are not just limiting their energy consumption. They are shrinking or moving to other continents. Europe, according to economists, may well be on the way to de-industrialization. Eurozone industrial activity fell to its lowest since May 2020. The October PMI from S&P Global signaled a looming recession, falling in November and becoming the fourth monthly reading below 50, indicating an economic slowdown.  In its latest analysis of the energy crisis in Europe, published on November 3, the IEA said the EU could face a shortfall of up to 30 billion cubic meters of natural gas during the summer of next year to replenish its gas storage capacity.

In a report entitled “Never Too Early to Prepare for Next Winter: Europe’s Gas Balance for 2023-2024” the IEA warns that the safety cushion provided by current storage levels, as well as recent lower gas prices and unusually mild temperatures, should not lead to unduly optimistic conclusions about the future.  A look at the IEA report shows that the European Union will face a major challenge in meeting its energy needs in the coming years. Given the high costs of transporting gas over long distances, Russia could still make a significant contribution to solving this problem.  With the world’s largest oil and gas reserves, Russia could provide Europe with the energy it desperately needs if it were not for persistent US sanctions.  Unlike oil, natural gas is difficult to transport in large volumes and is therefore exported either by pipeline or by conversion into liquefied natural gas (LNG), but this is expensive and requires large investments. Russia does not currently have the infrastructure to export large volumes of LNG to Europe.  Given current experience and looking to the future, European governments should clearly see the huge negative impact that sanctions against Russia have had and will have on global energy security. More should therefore be done to help curb US self-serving agendas and negotiate a multipolar world.

By constantly unleashing wars, the United States always reaps huge profits and the military-industrial complex comes first, as one would expect. It is not surprising that the US military budget is equal to that of the rest of the world combined. And this is further clear evidence that Washington does not want to live in a world where all contentious issues are resolved at the negotiating table, but aims only at military actions.

But lately, all of a sudden, the energy complex, whose owners are making exorbitant profits from oil and gas supplies, mostly to Europe, has become the most profitable sector in the United States. It is only natural that many people became interested and it was primarily the military who were concerned and who simply “pressed” Joe Biden. And now the US President has suddenly become “interested” in these huge sums and has decided to “clip the wings” of the oil and gas industry by imposing an additional tax on the profits of the owners of the energy complex. The simple conclusion from this is that unleashing Ukraine on Russia will continue at an accelerated pace, and Europe will be completely deprived of Russian gas. Even the gas coming through NATO member, Turkey.

By starting any military conflict, the US is not aiming to win. Above all, it is to destabilize the region so that it cannot be a US competitor for decades to come.

Today, a large proportion of the world’s elite keep their reserves in the EU. Naturally, the US will not completely destroy it. But if US companies gain a foothold and dominate the European market, it will force Europe to become even more involved in the Ukrainian conflict, to abandon Russian oil and gas completely, and it will be a huge prize for Washington to implement a policy of solving all issues only through war.

Viktor Mikhin, corresponding member of RANS, exclusively for the online magazine “New Eastern Outlook.


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