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Escobar: Definitive Eurasian Alliance Is Closer Than You Think

Escobar: Definitive Eurasian Alliance Is Closer Than You Think

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Escobar: Definitive Eurasian Alliance Is Closer Than You Think Tyler Durden Thu, 08/27/2020 - 23:05

Authored by Pepe Escobar via The Saker blog (originally posted at The Asia Times),

Beijing-Moscow is already on; Berlin-Beijing is a work in progress; the missing but not distant link is Berlin-Moscow..

We have seen how China is meticulously planning all its crucial geopolitical and geoeconomic moves all the way to 2030 and beyond.

What you are about to read next comes from a series of private, multilateral discussions among intel analysts, and may helpfully design the contours of the Big Picture.

In China, it’s clear the path ahead points to boosting internal demand, and shifting monetary policy towards the creation of credit to consolidate the building of world-class domestic industries.

In parallel, there’s a serious debate in Moscow that Russia should proceed along the same path. As an analyst puts it, “Russia should not import anything but technologies it needs until it can create them themselves and export only the oil and gas that is required to pay for imports that should be severely restricted. China still needs natural resources, which makes Russia and China unique allies. A nation should be as self-sufficient as possible.”

That happens to mirror the exact CCP strategy, as delineated by President Xi in his July 31 Central Committee meeting.

And that also goes right against a hefty neoliberal wing in the CCP – collaborationists? – who would dream of a party conversion into Western-style social democracy, on top of it subservient to the interests of Western capital.

Comparing China’s economic velocity now with the US is like comparing a Maserati Gran Turismo Sport (with a V8 Ferrari engine) with a Toyota Camry. China, proportionately, holds a larger reservoir of very well educated young generations; an accelerated rural-urban migration; increased poverty eradication; more savings; a cultural sense of deferred gratification; more – Confucianist – social discipline; and infinitely more respect for the rationally educated mind. The process of China increasingly trading with itself will be more than enough to keep the necessary sustainable development momentum going.

The hypersonic factor

Meanwhile, on the geopolitical front, the consensus in Moscow – from the Kremlin to the Foreign Ministry – is that the Trump administration is not “agreement-capable”, a diplomatic euphemism that refers to a de facto bunch of liars; and it’s also not “legal-capable”, an euphemism applied, for instance, to lobbying for snapback sanctions when Trump has already ditched the JCPOA.

President Putin has already said in the recent past that negotiating with Team Trump is like playing chess with a pigeon: the demented bird walks all over the chessboard, shits indiscriminately, knocks over pieces, declares victory, then runs away.

In contrast, serious lobbying at the highest levels of the Russian government is invested in consolidating the definitive Eurasian alliance, uniting Germany, Russia and China.

But that would only apply to Germany after Merkel. According to a US analyst, “the only thing holding back Germany is that they can expect to lose their car exports to the US and more, but I tell them that can happen right away because of the dollar-euro exchange rate, with the euro becoming more expensive.”

On the nuclear front, and reaching way beyond the current Belarus drama – as in there will be no Maidan in Minsk – Moscow has made it very clear, in no uncertain terms, that any missile attack from NATO will be interpreted as a nuclear attack.

The Russian defensive missile system – including the already tested S-500s, and soon the already designed S-600s – arguably may be 99% effective. That means Russia would still have to absorb some punishment. And this is why Russia has built an extensive network of nuclear bomb shelters in big cities to protect at least 40 million people.

Russian analysts interpret China’s defensive approach along the same lines. Beijing will want to develop – if they have not already done so – a defensive shield, and still retain the ability to strike back against a US attack with nuclear missiles.

The best Russian analysts, such as Andrei Martyanov, know that the three top weapons of a putative next war will be offensive and defensive missiles and submarines combined with cyber warfare capabilities.

The key weapon today – and the Chinese understand it very clearly – is nuclear submarines. Russians are observing how China is building their submarine fleet – carrying hypersonic missiles – faster than the US. Surface fleets are obsolete. A wolf pack of Chinese submarines can easily knock out a carrier task force. Those 11 US carrier task forces are in fact worthless.

So in the – horrifying – event of the seas becoming un-sailable in a war, with the US, Russia and China blocking all commercial traffic, that’s the key strategic reason pushing China to obtain as much of its natural resources overland from Russia.

Even if pipelines are bombed they can be fixed in no time. Thus the supreme importance for China of Power of Siberia – as well as the dizzying array of Gazprom projects.

The Hormuz factor

A closely guarded secret in Moscow is that right after German sanctions imposed in relation to Ukraine, a major global energy operator approached Russia with an offer to divert to China no less than 7 million barrels a day of oil plus natural gas. Whatever happens, the stunning proposal is still sitting on the table of Shmal Gannadiy, a top oil/gas advisor to President Putin.

In the event that would ever happen, it would secure for China all the natural resources they need from Russia. Under this hypothesis, the Russian rationale would be to bypass German sanctions by switching its oil exports to China, which from a Russian point of view is more advanced in consumer technology than Germany.

Of course this all changed with the imminent conclusion of Nord Stream 2 – despite Team Trump taking no prisoners to sanction everyone in sight.

Backdoor intel discussions made it very clear to German industrialists that if Germany would ever lose its Russian source of oil and natural gas, coupled with the Strait of Hormuz shut down by Iran in the event of an American attack, the German economy might simply collapse.

There have been serious cross-country intel discussions about the possibility of a US-sponsored October Surprise involving a false flag to be blamed on Iran. Team Trump’s “maximum pressure” on Iran has absolutely nothing to do with the JCPOA. What matters is that even indirectly, the Russia-China strategic partnership has made it very clear that Tehran will be protected as a strategic asset – and as a key node of Eurasia integration.

Cross-intel considerations center on a scenario assuming a – quite unlikely – collapse of the government in Tehran. The first thing Washington would do in this case is to pull the switch of the SWIFT clearing system. The target would be to crush the Russian economy. That’s why Russia and China are actively increasing the merger of the Russian Mir and the Chinese CHIPS payment systems, as well as bypassing the US dollar in bilateral trade.

It has already been gamed in Beijing that were that scenario ever to take place, China might lose its two key allies in one move, and then have to face Washington alone, still on a stage of not being able to assure for itself all the necessary natural resources. That would be a real existential threat. And that explains the rationale behind the increasing interconnection of the Russia-China strategic partnership plus the $400 billion, 25-year-long China-Iran deal.

Bismarck is back

Another possible secret deal already discussed at the highest intel levels is the possibility of a Bismarckian Reinsurance Treaty to be established between Germany and Russia. The inevitable consequence would be a de facto Berlin-Moscow-Beijing alliance spanning the Belt and Road Initiative (BRI), alongside the creation of a new – digital? – Eurasian currency for the whole Eurasian alliance, including important yet peripheral actors such as France and Italy.

Well, Beijing-Moscow is already on. Berlin-Beijing is a work in progress. The missing link is Berlin-Moscow.

That would represent not only the ultimate nightmare for Mackinder-drenched Anglo-American elites, but in fact the definitive passing of the geopolitical torch from maritime empires back to the Eurasian heartland.

It’s not a fiction anymore. It’s on the table.

Adding to it, let’s do some little time traveling and go back to the year 1348.

The Mongols of the Golden Horde are in Crimea, laying siege to Kaffa – a trading port in the Black Sea controlled by the Genoese.

Suddenly, the Mongol army is consumed by bubonic plague.

They start catapulting contaminated corpses over the walls of the Crimean city.

So imagine what happened when ships started sailing again from Kaffa to Genoa.

They transported the plague to Italy.

By 1360, the Black Death was literally all over the place – from Lisbon to Novgorod, from Sicily to Norway. As much as 60% of Europe’s population may have been killed – over 100 million people.

A case can be made that the Renaissance, because of the plague, was delayed by a whole century.

Covid-19 is of course far from a medieval plague. But it’s fair to ask.

What Renaissance could it be possibly delaying?

Well, it might well be actually advancing the Renaissance of Eurasia. It’s happening just as the Hegemon, the former “end of history”, is internally imploding, “distracted from distraction by distraction”, to quote T.S. Eliot. Behind the fog, in prime shadowplay pastures, the vital moves to reorganize the Eurasian land mass are already on.

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Analyst reviews Apple stock price target amid challenges

Here’s what could happen to Apple shares next.

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They said it was bound to happen.

It was Jan. 11, 2024 when software giant Microsoft  (MSFT)  briefly passed Apple  (AAPL)  as the most valuable company in the world.

Microsoft's stock closed 0.5% higher, giving it a market valuation of $2.859 trillion. 

It rose as much as 2% during the session and the company was briefly worth $2.903 trillion. Apple closed 0.3% lower, giving the company a market capitalization of $2.886 trillion. 

"It was inevitable that Microsoft would overtake Apple since Microsoft is growing faster and has more to benefit from the generative AI revolution," D.A. Davidson analyst Gil Luria said at the time, according to Reuters.

The two tech titans have jostled for top spot over the years and Microsoft was ahead at last check, with a market cap of $3.085 trillion, compared with Apple's value of $2.684 trillion.

Analysts noted that Apple had been dealing with weakening demand, including for the iPhone, the company’s main source of revenue. 

Demand in China, a major market, has slumped as the country's economy makes a slow recovery from the pandemic and competition from Huawei.

Sales in China of Apple's iPhone fell by 24% in the first six weeks of 2024 compared with a year earlier, according to research firm Counterpoint, as the company contended with stiff competition from a resurgent Huawei "while getting squeezed in the middle on aggressive pricing from the likes of OPPO, vivo and Xiaomi," said senior Analyst Mengmeng Zhang.

“Although the iPhone 15 is a great device, it has no significant upgrades from the previous version, so consumers feel fine holding on to the older-generation iPhones for now," he said.

A man scrolling through Netflix on an Apple iPad Pro. Photo by Phil Barker/Future Publishing via Getty Images.

Future Publishing/Getty Images

Big plans for China

Counterpoint said that the first six weeks of 2023 saw abnormally high numbers with significant unit sales being deferred from December 2022 due to production issues.

Apple is planning to open its eighth store in Shanghai – and its 47th across China – on March 21.

Related: Tech News Now: OpenAI says Musk contract 'never existed', Xiaomi's EV, and more

The company also plans to expand its research centre in Shanghai to support all of its product lines and open a new lab in southern tech hub Shenzhen later this year, according to the South China Morning Post.

Meanwhile, over in Europe, Apple announced changes to comply with the European Union's Digital Markets Act (DMA), which went into effect last week, Reuters reported on March 12.

Beginning this spring, software developers operating in Europe will be able to distribute apps to EU customers directly from their own websites instead of through the App Store.

"To reflect the DMA’s changes, users in the EU can install apps from alternative app marketplaces in iOS 17.4 and later," Apple said on its website, referring to the software platform that runs iPhones and iPads. 

"Users will be able to download an alternative marketplace app from the marketplace developer’s website," the company said.

Apple has also said it will appeal a $2 billion EU antitrust fine for thwarting competition from Spotify  (SPOT)  and other music streaming rivals via restrictions on the App Store.

The company's shares have suffered amid all this upheaval, but some analysts still see good things in Apple's future.

Bank of America Securities confirmed its positive stance on Apple, maintaining a buy rating with a steady price target of $225, according to Investing.com

The firm's analysis highlighted Apple's pricing strategy evolution since the introduction of the first iPhone in 2007, with initial prices set at $499 for the 4GB model and $599 for the 8GB model.

BofA said that Apple has consistently launched new iPhone models, including the Pro/Pro Max versions, to target the premium market. 

Analyst says Apple selloff 'overdone'

Concurrently, prices for previous models are typically reduced by about $100 with each new release. 

This strategy, coupled with installment plans from Apple and carriers, has contributed to the iPhone's installed base reaching a record 1.2 billion in 2023, the firm said.

More Tech Stocks:

Apple has effectively shifted its sales mix toward higher-value units despite experiencing slower unit sales, BofA said.

This trend is expected to persist and could help mitigate potential unit sales weaknesses, particularly in China. 

BofA also noted Apple's dominance in the high-end market, maintaining a market share of over 90% in the $1,000 and above price band for the past three years.

The firm also cited the anticipation of a multi-year iPhone cycle propelled by next-generation AI technology, robust services growth, and the potential for margin expansion.

On Monday, Evercore ISI analysts said they believed that the sell-off in the iPhone maker’s shares may be “overdone.”

The firm said that investors' growing preference for AI-focused stocks like Nvidia  (NVDA)  has led to a reallocation of funds away from Apple. 

In addition, Evercore said concerns over weakening demand in China, where Apple may be losing market share in the smartphone segment, have affected investor sentiment.

And then ongoing regulatory issues continue to have an impact on investor confidence in the world's second-biggest company.

“We think the sell-off is rather overdone, while we suspect there is strong valuation support at current levels to down 10%, there are three distinct drivers that could unlock upside on the stock from here – a) Cap allocation, b) AI inferencing, and c) Risk-off/defensive shift," the firm said in a research note.

Related: Veteran fund manager picks favorite stocks for 2024

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Major typhoid fever surveillance study in sub-Saharan Africa indicates need for the introduction of typhoid conjugate vaccines in endemic countries

There is a high burden of typhoid fever in sub-Saharan African countries, according to a new study published today in The Lancet Global Health. This high…

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There is a high burden of typhoid fever in sub-Saharan African countries, according to a new study published today in The Lancet Global Health. This high burden combined with the threat of typhoid strains resistant to antibiotic treatment calls for stronger prevention strategies, including the use and implementation of typhoid conjugate vaccines (TCVs) in endemic settings along with improvements in access to safe water, sanitation, and hygiene.

Credit: IVI

There is a high burden of typhoid fever in sub-Saharan African countries, according to a new study published today in The Lancet Global Health. This high burden combined with the threat of typhoid strains resistant to antibiotic treatment calls for stronger prevention strategies, including the use and implementation of typhoid conjugate vaccines (TCVs) in endemic settings along with improvements in access to safe water, sanitation, and hygiene.

 

The findings from this 4-year study, the Severe Typhoid in Africa (SETA) program, offers new typhoid fever burden estimates from six countries: Burkina Faso, Democratic Republic of the Congo (DRC), Ethiopia, Ghana, Madagascar, and Nigeria, with four countries recording more than 100 cases for every 100,000 person-years of observation, which is considered a high burden. The highest incidence of typhoid was found in DRC with 315 cases per 100,000 people while children between 2-14 years of age were shown to be at highest risk across all 25 study sites.

 

There are an estimated 12.5 to 16.3 million cases of typhoid every year with 140,000 deaths. However, with generic symptoms such as fever, fatigue, and abdominal pain, and the need for blood culture sampling to make a definitive diagnosis, it is difficult for governments to capture the true burden of typhoid in their countries.

 

“Our goal through SETA was to address these gaps in typhoid disease burden data,” said lead author Dr. Florian Marks, Deputy Director General of the International Vaccine Institute (IVI). “Our estimates indicate that introduction of TCV in endemic settings would go to lengths in protecting communities, especially school-aged children, against this potentially deadly—but preventable—disease.”

 

In addition to disease incidence, this study also showed that the emergence of antimicrobial resistance (AMR) in Salmonella Typhi, the bacteria that causes typhoid fever, has led to more reliance beyond the traditional first line of antibiotic treatment. If left untreated, severe cases of the disease can lead to intestinal perforation and even death. This suggests that prevention through vaccination may play a critical role in not only protecting against typhoid fever but reducing the spread of drug-resistant strains of the bacteria.

 

There are two TCVs prequalified by the World Health Organization (WHO) and available through Gavi, the Vaccine Alliance. In February 2024, IVI and SK bioscience announced that a third TCV, SKYTyphoid™, also achieved WHO PQ, paving the way for public procurement and increasing the global supply.

 

Alongside the SETA disease burden study, IVI has been working with colleagues in three African countries to show the real-world impact of TCV vaccination. These studies include a cluster-randomized trial in Agogo, Ghana and two effectiveness studies following mass vaccination in Kisantu, DRC and Imerintsiatosika, Madagascar.

 

Dr. Birkneh Tilahun Tadesse, Associate Director General at IVI and Head of the Real-World Evidence Department, explains, “Through these vaccine effectiveness studies, we aim to show the full public health value of TCV in settings that are directly impacted by a high burden of typhoid fever.” He adds, “Our final objective of course is to eliminate typhoid or to at least reduce the burden to low incidence levels, and that’s what we are attempting in Fiji with an island-wide vaccination campaign.”

 

As more countries in typhoid endemic countries, namely in sub-Saharan Africa and South Asia, consider TCV in national immunization programs, these data will help inform evidence-based policy decisions around typhoid prevention and control.

 

###

 

About the International Vaccine Institute (IVI)
The International Vaccine Institute (IVI) is a non-profit international organization established in 1997 at the initiative of the United Nations Development Programme with a mission to discover, develop, and deliver safe, effective, and affordable vaccines for global health.

IVI’s current portfolio includes vaccines at all stages of pre-clinical and clinical development for infectious diseases that disproportionately affect low- and middle-income countries, such as cholera, typhoid, chikungunya, shigella, salmonella, schistosomiasis, hepatitis E, HPV, COVID-19, and more. IVI developed the world’s first low-cost oral cholera vaccine, pre-qualified by the World Health Organization (WHO) and developed a new-generation typhoid conjugate vaccine that is recently pre-qualified by WHO.

IVI is headquartered in Seoul, Republic of Korea with a Europe Regional Office in Sweden, a Country Office in Austria, and Collaborating Centers in Ghana, Ethiopia, and Madagascar. 39 countries and the WHO are members of IVI, and the governments of the Republic of Korea, Sweden, India, Finland, and Thailand provide state funding. For more information, please visit https://www.ivi.int.

 

CONTACT

Aerie Em, Global Communications & Advocacy Manager
+82 2 881 1386 | aerie.em@ivi.int


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US Spent More Than Double What It Collected In February, As 2024 Deficit Is Second Highest Ever… And Debt Explodes

US Spent More Than Double What It Collected In February, As 2024 Deficit Is Second Highest Ever… And Debt Explodes

Earlier today, CNBC’s…

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US Spent More Than Double What It Collected In February, As 2024 Deficit Is Second Highest Ever... And Debt Explodes

Earlier today, CNBC's Brian Sullivan took a horse dose of Red Pills when, about six months after our readers, he learned that the US is issuing $1 trillion in debt every 100 days, which prompted him to rage tweet, (or rageX, not sure what the proper term is here) the following:

We’ve added 60% to national debt since 2018. Germany - a country with major economic woes - added ‘just’ 32%.   

Maybe it will never matter.   Maybe MMT is real.   Maybe we just cancel or inflate it out. Maybe career real estate borrowers or career politicians aren’t the answer.

I have no idea.  Only time will tell.   But it’s going to be fascinating to watch it play out.

He is right: it will be fascinating, and the latest budget deficit data simply confirmed that the day of reckoning will come very soon, certainly sooner than the two years that One River's Eric Peters predicted this weekend for the coming "US debt sustainability crisis."

According to the US Treasury, in February, the US collected $271 billion in various tax receipts, and spent $567 billion, more than double what it collected.

The two charts below show the divergence in US tax receipts which have flatlined (on a trailing 6M basis) since the covid pandemic in 2020 (with occasional stimmy-driven surges)...

... and spending which is about 50% higher compared to where it was in 2020.

The end result is that in February, the budget deficit rose to $296.3 billion, up 12.9% from a year prior, and the second highest February deficit on record.

And the punchline: on a cumulative basis, the budget deficit in fiscal 2024 which began on October 1, 2023 is now $828 billion, the second largest cumulative deficit through February on record, surpassed only by the peak covid year of 2021.

But wait there's more: because in a world where the US is spending more than twice what it is collecting, the endgame is clear: debt collapse, and while it won't be tomorrow, or the week after, it is coming... and it's also why the US is now selling $1 trillion in debt every 100 days just to keep operating (and absorbing all those millions of illegal immigrants who will keep voting democrat to preserve the socialist system of the US, so beloved by the Soros clan).

And it gets even worse, because we are now in the ponzi finance stage of the Minsky cycle, with total interest on the debt annualizing well above $1 trillion, and rising every day

... having already surpassed total US defense spending and soon to surpass total health spending and, finally all social security spending, the largest spending category of all, which means that US debt will now rise exponentially higher until the inevitable moment when the US dollar loses its reserve status and it all comes crashing down.

We conclude with another observation by CNBC's Brian Sullivan, who quotes an email by a DC strategist...

.. which lays out the proposed Biden budget as follows:

The budget deficit will growth another $16 TRILLION over next 10 years. Thats *with* the proposed massive tax hikes.

Without them the deficit will grow $19 trillion.

That's why you will hear the "deficit is being reduced by $3 trillion" over the decade.

No family budget or business could exist with this kind of math.

Of course, in the long run, neither can the US... and since neither party will ever cut the spending which everyone by now is so addicted to, the best anyone can do is start planning for the endgame.

Tyler Durden Tue, 03/12/2024 - 18:40

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