Showing posts with label imperalism. Show all posts
Showing posts with label imperalism. Show all posts

Tuesday, 8 November 2016

ESSENTIAL LISTENING: Interview with John Pilger

John Pilger: Whether Clinton or Trump, Tensions Will Escalate with China and Russia Under Next U.S. President


the Real News

Journalist John Pilger tells Paul Jay that the very real prospect of another World War is not being taken seriously by the American media

Tuesday, 12 April 2016

Imperialism and abrupt climate change - Kevin Hester and Eric Draitser

Eric Draitser intervews Kevin Hester


This week Eric welcomes author and columnist Paul Street, and radical envrionmentalist and political activist Kevin Hester to CounterPunch Radio. First, Eric chats with America's leading ultra-sectarian ideological criminal Paul Street about why he's having second thoughts about Bernie Sanders, and why the ruling elites might be as well. Eric and Paul discuss the Sanders campaign, what it means for grassroots activism, and whether or not it's a dead end for those seeking radical change. They also touch on The Donald, the trumpen proletariat, and the danger of a fascist state in a post-President Trump scenario.


In the second part of the show Eric connects with Kevin Hester out on his isolated island in New Zealand to discuss the looming climate catastrophe and the unraveling of the biosphere. Eric and Kevin discuss the bleak, dystopian future of abrupt climate change, the latest report from James Hansen, and why everyone should be conscious of what is to come. Also, they examine the connection between climate change, the environment, and imperialism. Not exactly the rosiest picture, but an important reality.


Musical Interludes:
I See Hawks in LA - Raised by Hippies
Gospel Beach - California Steamer
Freedom: Sove Peyi Mwen
Beachwood Sparks - Talk About Lonesome

To listen to podcast GO HERE



Wednesday, 24 December 2014

Oil Peak Demand

Ruble, Oil, Shale Gas, Derivatives and American Hegemony

by Federico Pieraccini


the Vineyard of the Saker,
23 December, 2014


There are two central issues related to the devaluation of the ruble and the dollar depreciation to keep in mind: the preservation of American hegemony and the speculative bubble of derivatives linked to industry of Shale Gas. Without these elements, it is impossible to understand what are the reasons and the consequences of these artificial economic actions.

This case must therefore necessarily be addressed from different perspectives, a geopolitical one and a purely economic one. 

The collapse of oil.


The depreciation of oil seems to be a 
strategy implemented by mutual agreements between the US State Department and the Royal House of Saudi. As you can read in the article, the meetings in September 2014, between Kerry and Prince Abdullah laid the foundations for a decline in crude oil prices (compared to the market value) and at the same time a denial in the reduction of daily production. An artificial manipulation of oil prices in all means. This seems to be the central reason why, despite a collapse inside the stock market in the UAE (losses between 8% and 20% in a single day on the 16th of December), there aren’t any short-term intentions to decrease the daily output of oil production.

The immediate effects of this situation are tangible in countries where the break-even point ("The break-even point is a value that indicates the amount, expressed in volume production and sales, product sales required to cover the costs previously incurred, in order to close the reference period without profits or losses.") for extraction of crude oil varies over 90$ a barrel. From Iran to Venezuela, passing through Russia, all these countries are affected by the collapse in the value of crude oil. Riyadh is less effected, since it’s break-even point is around 65$.

It's a situation that for some countries is not sustainable for much longer, of course we are not speaking about Russia that has a good economic base (low debt, high gold reserves, much foreign currency liquidity), but rather about countries like Venezuela ( break even in a range 140-160$) which receive much of their income from gains on oil export. Combining this situation with the sanctions imposed on Caracas and we could be facing an economic collapse in Venezuela (Zero 
Hedge has placed at 93% the chance of a default ). Not to mention that even the Iranian oil is affected by these declines (break-even between 120- 140$), with great satisfaction of Riyadh, the regional competitor.

Flood the market with something that has a very low demand ( 
are we at the peak for demand of oil ?) and what you get is deflation and this is tangible even to the less attentive observers. If the world economy slows, thus also the need of energy will fall contextually. If this decline is not matched by a decrease in production (as required at OPEC two weeks ago), then the price will collapse to the current value. In a sense, the ordinary citizen could argue that the price per barrel today is much more in line with market values ​​at this stage of the global economy .Unfortunately, it is only one of many points of view from which to observe this scenario and certainly does not offer a complete explanation. 

The depreciation of the ruble


Undoubtedly there is a strong correlation between the fall in crude oil prices and the collapse in the value of the ruble. But this theory does not offer a sufficient explanation. There are other factors that cannot be ignored.

The economic sanctions imposed by the United States and the European Union prevent lending to Russian companies, with payment terms beyond 30 days. Given that Russian companies get cheap money from the West banks since the end of the Cold War, the sanctions currently prevent a restructuring of previous loans and refinancing more of the same. The consequences are that these companies must now buy Euros and Dollars to take care of their loans, thus creating more demand for foreign currency in the Russian market and thus weakening the ruble. From a purely business point of view, the Russian companies would like to see a different behavior of the Russian central bank, as explained by Alexander Mercourius:

"What I suspect, about what is happening, is that major speculators against the ruble are just the banks and Russian companies that have a large amount of dollar loans to be repaid before the end of the year. Instead of paying these debts with their reserves, they are putting pressure on the government and the central bank converting rubles into dollars and speculating against the ruble. And this aspect is much more important than any other factor that caused the recent defeat of the ruble. Judging from what Ulyukaev says, the government and the Central Bank have essentially capitulated and decided to help banks by giving them some of the reserves of the Central Bank. This may explain why the rate increase on the 15th of December was so ineffective and why in the last days the ruble has strengthened."

Indeed analyzing the side effects of the 
Bond issued by Rosfnet on December 12th, 2014 (625 billion rubles - amounting to 11 billion dollars to 15/12), it seems that in the end the Russian central bank bought this bond, letting Rosfnet refinance loans, with Western banks. One could argue that the United States applies the same tactics using the Fed to simply print money and give them out to American business in trouble, in change of bond emissions. The behavior of the Russian central bank, similar to the Fed’s, has been an obligated one. The problem is that the global system is calibrated on the Dollar, not on the ruble. Russia used a Western method to create money and pays the consequences. These same consequences are the mother of all frightens for Americans with the process of De-Dollarization and the Dollar losing credщbility. 

The geo-political factor of this crisis


"We could of never imagineed what is happening, it is the materialization of our worst nightmares. And in the next few days I think the situation could be comparable to the most difficult period of 2008 " - Sergei Shvetsov, First Deputy Governor of the Central Bank of Russia.

The most interesting question to ask is: could of the Russian authorities predict this combined attack oil-ruble-sanctions? The answer is yes and they did. Too bad no one could of imagined a so immediate acceleration of this strategy. Not even in the deepest nightmares of the Russians, in 6 months, the oil would be reduced to half of its value and the ruble of more than 50% in 12 months. This American tactic requires an extremely high risk factor and that endangers the 'entire global economy, as we shall see .

Why then have the United States and its partners come to take this path so full of unknowns? Even in this case there are multiple answers. Certainly the main thrust concerns the geopolitical strategy of 'regime-change' in countries such as Venezuela, Iran and Russia ( in fact the most affected by the collapse of the price of oil). If using normal methods of softpower obtained not very significant results (Iran is heading to the agreement 5 + 1, Assad is increasingly solid in Syria, Putin is becoming increasingly popular at home and Maduro was able to regain the reins of the country after a period of instability following the death of Chavez and the artificial protests in the summer), in this way the key is an economic leverage. Never the less, there are many risks in this strategy. The collapse of the currency, the decrease in revenues from crude oil, rising prices, rising inflation, declining purchasing power and so on are the weapon with which America is convinced that it can continue its role as a hegemon in the world. The order is to lead to a collapse of domestic rival nations thanks to a combination of factors: sanctions, oil and currency. 

What are the risks of this strategy?


After analyzing the motives and methods used to pursue this Kamikaze strategy, we can analyze certainly a more interesting but also more disturbing issue: the risks that these methods implemented by the west could trigger. The crisis in Ukraine, the Eurasian Union, the de-dollarization and the mega agreements between BRICS countries led to a backlash in Washington, with a game of risking everything.

The factor that carries the major unknowns but also the major concern is the market of the Shale Gas in America. Raised as a banner of American energy independence, coveted as a weapon to transit from the Middle East towards Asia (part of the strategy of "Asian Pivot"), it has undeniably played (and still plays) a primary role in the plans of policy makers in Washington.

Yet what is cleverly concealed by the mainstream media are the side effects that the market of shale gas suffers at the current low oil prices. The break-even point for these new methods of extraction is between a range of 60-80$ per barrel. Given this, it is easy to understand that with a prolonged period of low prices, the effects will be devastating for the whole market of Shale gas in the US (the first case of this kind has already happened, the 
Red Fork Energy Australia yesterday went into controlled administration ). If these were the only consequences, we could simply consider them irrelevant. The problem comes when we focus on the lending process to these companies that fail to return the credits to banks if they go bankrupt. A default in this industry sector could trigger a cascade mechanism which would ultimately affect the mother of all bubbles: the derivatives well hidden in Western banks.

The big global risk that the United States are taking to maintain their global hegemony is not much different from a preemptive nuclear attack (seems a doctrine of first strike in an economic sense). If the price of oil (artificially manipulated) drags into the abyss the Shale Gas Industry of America, all loans that should be repaid to the US banks would go in smoke. With them, potentially, all the derivatives:

Let’s give some the numbers to these words and see how many of these crazy financial instruments, the US banks have:
JPMorgan Chase 
  • Total Assets: $ 2,520,336,000,000 (about 2.5 trillion dollars)
  • The total exposure to derivatives: $ 68,326,075,000,000 (more than 68 trillion dollars)
Citibank 
  • Total Assets: $ 1,909,715,000,000 (just over 1.9 trillion dollars)
  • The total exposure to derivatives: $ 61,753,462,000,000 (more than 61 trillion dollars)
Goldman Sachs 
  • Total Assets: $ 860,008,000 (less than a trillion dollars)
  • The total exposure to derivatives: $ 57,695,156,000,000 (more than 57 trillion dollars)
Bank Of America 
  • Total Assets: $ 2,172,001,000,000 (a little 'more than 2.1 trillion dollars)
  • The total exposure to derivatives: $ 55,472,434,000,000 (more than 55 trillion dollars)
Morgan Stanley 
  • Total Assets: $ 826.568 billion (less than a trillion dollars)
  • The total exposure to derivatives: $ 44,134,518,000,000 (more than 44 trillion dollars)
A useful comparison to fully realize what numbers we're talking about: the US public debt amounts to 18 trillion dollars. The derivatives markets, only of the six largest banks in America, amounts to almost 16 times the US debt!

We are faced with yet the same dilemma already of the 2008 financial crisis: let banks fail or save them? Can the banks fail or are they “to big to fail”? In this case there are two possible ways: Print money (the Feds way of solving every problem) without worry of the increasing public debt (the example used so sustain this theory is Japan with 300% of debt) or let banks fail.

Taking for granted that the manipulation of the oil market and consequently the ruble affair are geopolitical moves, then what is the winning strategy that Washington hopes to obtain, without causing a collapse of the global economy? Foster a regime change in Venezuela, Iran and Russia in a short time or compel these nations to come to terms with the dictates of the West. It's important to note that the time is NOT on the side of the West. The reason is related to the arguments set out above: an oil price so low would send down the drain the market of Shale gas, causing a chain reaction that would destroy the major US banks and could trigger the biggest speculative bubble in human history, the derivatives, which would cause an economic crisis in the face of which what happened in 2008 would be remembered as something easy.

There is one factor that matters more than any other and is considered by the US as the real key to this strategy. If the market of the Shale came to collapse and US banks have to be saved again ( 
as they are asking the government since December 11th ), the solution would be to simply print more money from the Fed and increase the US public debt. One might object that this would decrease significantly the credibility of the dollar itself. It's a matter of debate and no one has a definite answer. Surely in the US, they are convinced that if this tactic would be successful and lead to a regime change and economic collapse of Russia, China would be forced to "return to the fold" (having lost here number 1 ally), thus ensuring the good solidity of US Treasury (the credibility of the dollar is very dependent on China because of the amount of American Treasury Bonds detained by the Chinese) and confirming the credibility of the dollar itself (even in a situation where the public debt were to move from 16 to 36 trillion dollars).

The basic problem remains geopolitical. The hegemonic view that the US need and want to keep . They currently have no other means to fight a global change that is transiting humanity in a stage no longer unipolar (in which the Americans is the only super-power) but multipolar (more actors on the world stage). We are reckoning and current drift presents an incalculable risk for the entire global economy ... it really worth it?


Monday, 22 December 2014

America has Cuban oil in its sights

When asked by Thom Hartmann about the connection between events in Cuba and attempts to collapse the Russian economy by manipulating oil prices Prof. Stephen Cohen said, as a professor, “I don’t know”, but proceeded to talk about how Ronald Reagan had done the exact same to bring down the Soviet economy.

No doubt whatsoever about what is going on now. 

The American corporations have Cuban resourses in their sights and aim to cut Russia out of the equation while taking revenge on Venezuela.

Cuban Oil May Prove A Boon For U.S. Companies
Ari Philips

shutterstock_186528737
CREDIT: SHUTTERSTOCK
21 December, 2014

With diplomatic relations warming between the U.S. and Cuba, oil and gas companies may train their sights on what’s off Cuba’s coast — large oil reserves. Right now Cuba produces just over 50,000 barrels per day of oil and relies on Venezuela for around another 100,000 bpd. However with Venezuela’s economy reeling from the staggering drop in oil prices this year, Cuban officials want to avoid the impacts of a sudden drop in Venezuelan support. The commitment by Cuba and the U.S. to normalize relations may allow Cuba to buy more oil on the open market, and for U.S. companies to bring expertise and experience to tap into the country’s offshore reserves.

This outcome is far from certain. With Saudi Arabia refusing to cut oil output, which would stabilize prices, and previous offshore efforts yielding unsuccessful results, many experts believe that most of Cuba’s 124 million barrels will remain inaccessible. Brazilian, Malaysian and Spanish companies have failed to produce any major wells during exploration efforts in the last few years. Pavel Molchanov, an energy company analyst with Raymond James, told Politico that there is “not going to be a Cuban oil rush.”

Even if there is no rush, the arrival of U.S. oil and gas firms could help boost production through better drilling services. Jorge Piñon, director of the Latin America and Caribbean Energy Program at the University of Texas, told FuelFix that if companies like Halliburton and Schlumberger gave technological assistance to Cuba, the country could significantly increase the amount of oil it recovers from its current wells. He also said that Cuba wants to avoid the type of economic pain it experienced after foreign aid dried up along with the fall of the Soviet Union — something that could foreseeably happen with Venezuela if oil prices don’t rebound.

With a major leap into Cuban oil looking doubtful for economic and geologic reasons, one actual benefit that may be more likely is an increase in safety measures and precautions for the drilling and refining that does take place — including responses to any spills. Cuba borders the Gulf of Mexico to the southeast, and is susceptible to offshore disasters like the 2010 Deepwater Horizon explosion near the U.S. coast. Spill containment equipment developed to deal with Deepwater Horizon-type events will likely be held up by the current embargo because the products are produced by U.S. firms. The U.S. embargo of Cuba remains in place as Obama needs the Republican-controlled Congress to help him in normalizing these economic relations. As it stands, anything made from more than 10 percent U.S. parts cannot be sold to Cuba or a Cuban contractor.

As these economic barriers and incentives play out, the U.S., Cuba, and Mexico will have to determine how to divide up the Gulf of Mexico.

Previous agreements between the United States and Cuba delimit the maritime space between the two countries within 200 nautical miles from shore,” the White House said in a release. “The United States, Cuba and Mexico have extended continental shelf in an area within the Gulf of Mexico where the three countries have not yet delimited any boundaries.”

The Cuban government is also looking to diversify its energy sources, and increase renewable energy capacity in an effort to improve energy security. Based primarily on solar, wind, and small hydropower, Cuba aims to get 24 percent of its electricity from renewable sources by 2030. Cuba opened its first solar farm in 2013 and has plans for at least six more.


Quite a number of people now are saying that the United States (and its proxy) manipulated oil prices to attack its enemies - Russia and Venezuela

It may also, of course, be that the Saudis,as well as attacking other producers (notably, Russia) also had sale oil producers in their sights as well.

US provoked Oil Prices fall to attack Venezuela, Russia: Evo Morales


19 December, 2014

Nowadays it is impossible to remove presidents with military coups, so economic means and sanctions are considered, Bolivian President Evo Morales said, adding that the US has provoked the reduction in oil prices to 'attack' Russia's and Venezuela's economies.

The US has provoked the decrease in oil prices, to attack Venezuela and Russia, the President of Bolivia Evo Morales said to RT in an interview.

"The reduction in oil prices was provoked by the US as an attack on the economies of Venezuela, and Russia… In the face of such an economic and political attack, the countries have to be united," Morales said.

Nowadays it is impossible to remove presidents with military coups, so economic means and sanctions are considered, the president explained. Such aggressive US policies, he said, are aimed at dividing countries, dominate them politically and rob them economically.

"Whatever economic aggression with oil prices that comes from the US is not going to last. I am convinced of it," the president reassured. He explained that the US was not interested in oil prices, but in conducting economic attacks to topple certain presidents. However, "this escapade would not work. Our people are conscious. We are anti-imperialists," he said.

Venezuela's President Nicolas Maduro speaks during a rally to reject the sanctions that the U.S. government seeks to impose on officials accused of human rights violations, in Caracas December 15, 2014.

The US and the EU introduced several round of sanctions against Russia over its alleged role in the Ukrainian crisis. The sanctions targeted the banking, energy and defense sectors, as well as certain individuals. However, Russia repeatedly denied its involvement in Ukraine's internal affairs.

US President Barack Obama signed a sanctions bill against Venezuela Thursday. The sanctions target individuals who are allegedly responsible for human rights violations during February protests against President Nicolas Maduro's government.

I think, from the Cuban side, that there had to be something to bring it to the negotiating table with the United States.

Plummeting Oil Prices 

Possible Causes of US-Cuba 

Deal: Experts



21 December, 2014

Experts say that the impact on the Venezuelan and Russian economies due to a drop in oil prices could have forced Cuba to re-establish its diplomatic relations with the United States, as both will not be able to help economically as before.

WASHINGTON, December 20 (Sputnik), Anastasia Sheveleva — The weakening of the Venezuelan and Russian economies due to a drop in oil prices could have forced Cuba to re-establish its diplomatic relations with the United States, experts on Cuba have told Sputnik.

"With the decline in the price of oil, Cuba's benefactors, Venezuela and Russia, both are going to be not as able to help economically, so Cuba is seeing a decline in economic assistance from Venezuela and Russia, so that was the incentive on the Cuban part," Jose Azel, Senior Scholar at the Institute for Cuban and Cuban-American Studies at the University of Miami, told Sputnik Friday.
Eduardo Gamarra, Professor at the School of International and Public Affairs at Florida International University (FIU) agrees with the possibility of plummeted oil prices, pushing Cuba to restore its relations with the United States.
"That timing might have been a part of the reason why the Cubans decided, right now we would better look at his situation in a different way, because we have to face the future and certainly the future is not with Venezuela, because their oil in the first place is expensive," Gamarra told Sputnik Friday.

As to the United States' incentive to reach the deal at this particular moment, both experts came to the conclusion that it was US president Barack Obama's political move.
"On the part of the Obama administration, I think it is a political move, there is a new Congress taking over at the beginning of the year, he [Obama] may be thinking of his legacy, he wants this to be part of it," Azel said.
Meanwhile Gamarra stressed that Obama "is already a lame duck" and "has no possibility after January to have any influence over Congress", so "it was fairly good timing [to ease trade and travel restrictions imposed on Cuba] before the end of the year".
Gamarra went on, by saying that "you have the anti-imperialist guru [Castro] is all of the sudden talking to Obama, so I think we should expect some interesting sets of discussions, whether that will lead to a very significant change in Russian presence in the region or Russian relations with Venezuela, or even Russian relations with Cuba".
However, the professor from FIU stressed that nothing in the agreement between Obama and Castro indicates that Russians will begin to dismantle their interests in the region.

Azel from the University of Miami said that the Obama administration did not pay enough attention to the Russian influence in Cuba.
"The Russian influence in Cuba should have been a great concern to the United States, apparently, it was not to this president," Azel said.
Both experts agreed that US Congress will not lift Cuba's embargo in the nearest future partly because Obama did not gain from the most recent negotiations with Cuba.
"He [Obama] cannot eliminate the sanctions of Helms-Burton law…he is not going to get that congressional action. I don't think Congress is going to eliminate sanctions without concessions from Cuba, remember that the president [Obama] really got nothing out of Cuba, this is very bad negotiations," Azel told Sputnik Friday.
Gamarra agreed that the embargo is not going to be lifted, explaining, however, that in might not be as exclusive as it seems.
"Part of the mythology of the embargo is very interesting, because the reality is the United States is the only country that put a quasi-embargo on Cuba. For the better part of the last decade American farmers and others have, in fact, been selling stuff to Cuba," Gamarra said, adding that there are Brazilian and European investments in the region.
Nevertheless, the experts doubted that new American investment is going to flow into Cuba, even in case the US sanctions are eliminated, because Washington would not agree to partner with the Cuban government.
On Wednesday, President Obama announced that the United States was relaxing trade and travel restrictions on Cuba. An embargo has been in place since 1961 due to Cold War antagonism between Washington and the Communist government in Havana. 
Back in summer, Vladimir Putin visited Cuba and an agreement was signed to help Cuba develop its own offshore oil reserves.
There was even talk (denied by Putin) of Russia re-opening its listening post in Cuba.
In his Q & A Putin, accused of cold war aggression by the BBC pointed out that not only does Russia spend ten times less on defence than the United States, but its has only TWO military bases (both in its 'near abroad') and had completely closed bases in both Cuba and Vietnam.


Russia’s Rosneft to help Cuba explore offshore oil reserves

13 July, 2014

Russian oil company Rosneft will help Cuban State oil company Cupet explore the country's offshore oil reserves, according to one of the cooperation documents signed between Russia and Cuba during President Vladimir Putin’s visit to Havana.

Putin concluded his first stop on his six-day tour to Latin America in Havana, Cuba, where he met the nation’s President Raul Castro.

Speaking at a press conference, Putin confirmed that many major cooperation deals have been signed between the two nations.

One of the most significant agreements allows the Russian oil company Rosneft to help explore and drill on an offshore oil platform on Cuba’s northeast coast. The area potentially has up to 20 billion barrels of oil, according to Cupet.

"Developing new blocks on Cuba's offshore shelf is (expected) in the very near future," Putin said.

During the discussions, Putin was joined by Rosneft head Igor Sechin in order to finalize the deal.

Cuba has limited onshore production and relies heavily on imports from Venezuela for its oil consumption needs.

Putin also confirmed that Russia is writing off 90 percent of Cuba’s debt, which amounts to $32 billion. The remaining 10 percent will be reinvested into the Cuban economy, the president added.

"We will provide support to our Cuban friends to overcome the illegal blockade of Cuba," Putin said.

Read more: Russia writes off 90% of Cuba's debt ahead of Putin's 'big tour' to L. America

Meanwhile, Russian company Inter RAO Export and Cuba's Union Electrica signed a contract for the construction of four 200 megawatt units for the Maximo Gomez power plant.

Other documents signed on Friday include a bilateral statement on the non-placement of weapons in outer space and an intergovernmental agreement on cooperation in the area of international information security.

During the visit to Cuba, Putin also met with former President Fidel Castro, who stepped down due to health concerns in 2008, after 49 years in power.

Putin and Fidel Castro discussed international affairs, the global economy, and Russia-Cuba relations, the Kremlin stated.

Later on Friday, Putin made a surprise stop in Nicaragua on his way to Argentina. He will then go to Brazil.



Putin denies reopening of US-targeting listening post in Cuba


17 July, 2014

Russian President Vladimir Putin denied media reports that Russia was planning to reopen the Soviet-age SIGINT facility in Lourdes, Cuba, once was largest foreign listening post of its kind, but shut down under US pressure.

Russia can meet its defense needs without this component” and has no plans to renew its operation, the president assured journalists on Wednesday.

Earlier Kommersant business daily reported that Moscow and Havana had reached a deal on reopening the spy facility during Putin’s visit to Cuba last week. 
When operational, the facility was manned by thousands of military and intelligence personnel, whose task was to intercept signals coming from and to the US territory and to provide communication for Russian vessels in the western hemisphere.
I can say one thing: at last!” one of the sources commented on the news to the paper, adding that the significance of the move is hard to overestimate.

The facility in Lourdes, a suburb of Havana located just 250km from continental USA, was opened in 1967. At the peak of the cold war it was the largest signal intelligence center Moscow operated in a foreign nation, with 3,000 personnel manning it.
From the base Russia could intercept communications in most part of the US including the classified exchanges between space facilities in Florida and American spacecraft. Raoul Castro, then-Defense Minister of Cuba, bragged in 1993 that Russia received 75 percent of signal intelligence on America through Lourdes, with was probably an overstatement, but not by a large amount.

Following the collapse of the Soviet Union the base was downscaled, but continued operation. After Russia was hit the 1998 economic crisis, it found it difficult to maintain many of its old assets, including the Lourdes facility. In Soviet times Cuba hosted it rent-free, but starting 1992 Moscow had to pay Havana hundreds of millions dollars each year in addition to operational costs to keep the facility open.
Russian President Vladimir Putin, left, and President of the Council of State and Ministers of the Republic of Cuba Raul Castro Ruz during a press statement at the Palace of the Revolution in Havana. (RIA Novosti/Aleksey Nikolsky)
Russian President Vladimir Putin, left, and President of the Council of State and Ministers of the Republic of Cuba Raul Castro Ruz during a press statement at the Palace of the Revolution in Havana. (RIA Novosti/Aleksey Nikolsky)

An additional blow came in July 2000, when the US House passed the Russian-American Trust and Cooperation Act, a bill that would ban Washington from rescheduling or forgiving any Russian debt to the US, unless the facility in Lourdes is shut down.


Moscow did so in 2001 and also closed its military base in Vietnam’s Cam Ranh, with both moves reported as major steps to address Americans’ concerns. But, in the words of a military source cited by Kommersant, the US did not appreciate our gesture of goodwill.”

No detail of schedule for the reopening the facility, which currently hosts a branch of Cuba’s University of Information Science, was immediately available. One of the principle news during Putin’s visit to Havana was Moscow’s writing off of the majority of the old Cuban debt to Russia. The facility is expected to require fewer personnel than it used to, because modern surveillance equipment can do many functions now automatically.

With the Lourdes facility operational again, Russia would have a much better signal intelligence capability in the western hemisphere.
Returning to Lourdes now is more than justified," military expert Viktor Murakhovsky, a retired colonel, told Kommersant. The capability of the Russian military signal intelligence satellite constellation has significantly downgraded. 

With an outpost this close to the US will allow the military to do their job with little consideration for the space-based SIGINT echelon.”



Whether by American corporations or by Rosneft it is a tragedy that Cuba's oil reserves should ever be developed.

In any case, it looks that the Americans are trying to push the Russians out of the equation and grab the reяources for themselves.

The achievement of the Cuban revolution are not only in terms of social equity and its historic role in the National Liberation struggle in southern Africa, but also in the area of conservation.

Now all of this is likely to be lost, including Cuba's hitherto pristine environment.


Castro the Conservationist? By Default or Design, Cuba Largely Pristine
Will Cuban President Fidel Castro be remembered primarily as a man of the people, an authoritarian tyrant—or a conservationist?


28 October, 2010


Some experts say his environmental policies may be among his greatest achievement.

Though Cuba is economically destitute, it has the richest biodiversity in the Caribbean. Resorts blanket many of its neighbors, but Cuba remains largely undeveloped, with large tracts of untouched rain forest and unspoiled reefs (map of Cuba).

The country has signed numerous international conservation treaties and set aside vast areas of land for government protection.
But others say Cuba's economic underdevelopment has played just as large a role.

Since the collapse of the Soviet Union—its main financial benefactor—Cuba has had to rely mostly on its own limited resources. It has embraced organic farming and low-energy agriculture because it can't afford to do anything else.

And once Castro is gone, the experts say, a boom in tourism and foreign investment could destroy Cuba's pristine landscapes.

Eco-Legacy

"I think the Cuban government can take a substantial amount of credit for landscape, flora, and fauna preservation," said Jennifer Gebelein, a professor at Florida International University in Miami who studies environmental issues in Cuba.

More than 20 percent of Cuba's land is under some form of government protection. The island's wetlands have been largely shielded from pesticide runoff that has destroyed similar areas in other countries.


Castro handed power to his brother last week to undergo emergency intestinal surgery. His health remains uncertain, fueling rampant speculation about his legacy.

And since Castro seized power in 1959, logging has slowed significantly. Forest cover has increased from 14 percent in 1956 to about 21 percent today.

In addition, the more than 4,000 smaller islands surrounding the main island are important refuges for endangered species. The coastline and mangrove archipelagos are breeding grounds for some 750 species of fish and 3,000 other marine organisms

"Because Cuba's tourist industry has not developed quickly in regard to reef exploitation, the reefs have been spared the fate of Florida's reefs, for example," Gebelein said.

At about 1.5 million acres (600,000 hectares), the Ciénaga de Zapata Biosphere Reserve is Cuba's largest protected area and has been designated a "Wetland of International Importance" by the Ramsas Convention on Wetlands in 1971.

"The Zapata Swamp is the Caribbean's largest and most important wetland," said Jim Barborak, who is based in San Pedro, Costa Rica, and heads the protected areas and conservation corridors program for Conservation International.

Jewel of the Caribbean

Originally, Cuba was in the Pacific Ocean, not the Caribbean Sea. Continental drift slowly brought the island into the Caribbean some 100 million years ago, and an astonishing variety of life emerged.

"Cuba has tremendous biological diversity," Barborak said. "The levels of plant endemism—unique species limited to Cuba—is particularly high, especially in highland ecosystems in eastern Cuba."

More than half of Cuba's plants and animals, and more than 80 percent of its reptiles and amphibians, are unique to the island.

Endemic birds include the Cuban trogon, the Cuban tody, and the Cuban pygmy owl. The world's smallest bird, the bee hummingbird—which weighs less than a U.S. penny—is found there.

"Important populations of many North American migratory birds, whose declining populations require international action to conserve both breeding and wintering grounds, spend much of the year in Cuba," Barborak said.

Cuba is only one of two nations with a primitive mammal known as a solenodon, a foot-long (0.3-meter-long) shrewlike creature.

The island also has a great diversity of giant lizards, crocodiles, and tortoises.

Intellectual Infrastructure

A key player in Cuba's green movement has been Guillermo García Frías, one of five original "comandantes" of the 1959 Cuban revolution.

A nature lover with strong ties to Castro, García has pushed for a strong environmental ethic for a generation of scientists and government officials.

"Comandante García's enthusiasm for nature conservation has been critical to the successful development of a conservation infrastructure in Cuba," said Mary Pearl, president of the Wildlife Trust in New York City.

Cubans are leaders in biological research, with thousands of graduates from the country's ten universities and institutes devoted to work in ecology.

"The country has the best intellectual infrastructure for wildlife conservation in the Caribbean," Pearl said.

Students in every department at the University of Havana, for example, have had the opportunity to share a bonding experience by living in an impoverished fishing village while working to protect marine turtles.

"As a result, many of Cuba's leaders in all spheres have had a common experience reconciling poverty alleviation and nature conservation," Pearl said. "It is not surprising that this has left a legacy of concern for nature, despite the country's economic challenges."

Embargo Woes

But Cuba has earned its green credentials partly by default.

Isolated in part because of the U.S. trade embargo against the island, Cuba has been excluded from much of the economic globalization that has taken its toll on the environment in many other parts of the world.

"The healthy status of much of the wetlands and forests of Cuba is due not to political influence as much as the lack of foreign exchange with which to make the investments to convert lands and introduce petrochemical pesticides and fertilizers," Pearl said.

Since the collapse of the Soviet Union, many Cuban factories and agricultural fields have sat dormant. The island has had to become self-sufficient, turning to low-energy organic farming.

It has had to scrap most of its fishing fleet because it can't afford to maintain the ships.

Population pressure has also been a nonissue, with many Cubans fleeing the country for economic and political reasons.

However, Conservation International's Barborak says it would be wrong to think Cuba's environmental success is simply due to its economic underdevelopment.

"If this were true, then Haiti could be expected to be a verdant ecological paradise, instead of being the most environmentally devastated country in the region, with just a tiny fraction of its forest cover intact," he said.

"Cuba's stable population, high literacy rate, clear land-tenure system, large cadre of well-trained conservationists, and relatively strong enforcement of laws and regulations are certainly all associated with its conservation achievement."

So what will happen if Castro's regime falls and a new, democratic government takes root?

Conservationists and others say they are worried that the pressure to develop the island will increase and Cuba's rich biodiversity will suffer.

Barborak said he is concerned that "environmental carpetbaggers and scalawags will come out of the woodwork in Cuba if there is turbulent regime change.

"One could foresee a flood of extractive industries jockeying for access to mineral and oil leases," he said.

"A huge wave of extraction of unique and endemic plants and animals could occur to feed the international wildlife market. And a speculative tourism and real estate boom could turn much of the coastline into a tacky wasteland in short order."

"If foreign investments take a much firmer hold, more hotels will be built and more people will descend on the reefs," added Gebelein, the Florida International University professor.

"If the Cuban government does not have a swift policy framework to deal with the huge influx of tourists, investors, and foreign government interests, a new exploitative paradigm will be the beginning of the end for some of the last pristine territories in the Caribbean."