Archive for the 'International Affairs' Category
Posted by Jay Manifold on 4th May 2014 (All posts by Jay Manifold)
Many thanks to the commenters on my review. I won’t be agreeing with all of you, but I value your input for increasing my understanding of what others think. I have some related ideas on how to think about the issues raised specifically by Lightning Fall and generally by “preppers” and, indeed, anyone anticipating a societally disruptive crisis in the near future.
NB: this is an essay in the original sense of “attempt.” It is unlikely to fully represent my thinking on these issues even a few years hence; and whether you agree with me or not, I encourage you to think these things through based on your own abilities and experience, and then act as your specific situation appears to require. Hayekian distributed local knowledge may save us. Central planning, as I hardly need admonish this audience, will not, and therefore any attempt by me to impose a uniform mental framework should (and undoubtedly will) be firmly rejected.
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Posted in Book Notes, Civil Society, Current Events, History, Human Behavior, International Affairs, Markets and Trading, National Security, Predictions, Society, Systems Analysis, Terrorism, Tradeoffs, Urban Issues, USA, War and Peace | 8 Comments »
Posted by onparkstreet on 30th April 2014 (All posts by onparkstreet)
I enthusiastically welcome the January 11 letter from Ukrainian President Viktor Yushchenko, Prime Minister Yuliya Tymoshenko, and Verkhovna Rada Chairman Arsenii Yatsenyuk to NATO Secretary General Jaap de Hoop Scheffer, which outlines Ukraine’s desire for a closer relationship with NATO, including a Membership Action Plan. Like Ukraine’s leaders, I hope that important steps toward reaching these goals will be made at the NATO summit in Bucharest in early April. I applaud the fact that Ukraine aspires to anchor itself firmly in the trans-Atlantic community through membership in NATO and look forward to working with Ukrainians and Ukrainian-Americans to reach that goal.
Since the earliest days of Ukrainian independence, the strategy of the United States has always been to respect and support the Ukrainian people’s democratic choices in shaping their future. Ukraine has been and remains an extremely important partner for the United States, and I take great pride in Ukraine’s contributions to our common goal of building a Europe that is whole and free, peaceful and prosperous.
When I traveled to Ukraine in 1997, I visited a memorial to the victims of Communist repression in Lviv, and made a commitment to the Ukrainian people on behalf of the United States: “In your fight for freedom, your fight for democracy, the American people will stand with you.” In recalling that commitment more than ten years later I applaud the immense contributions that Ukrainian-Americans have made to our country and the indispensable role they have played in broadening and deepening the bonds between the United States and Ukraine. I have been greatly impressed by the courage of the Ukrainian people as they emerged from decades of Soviet oppression and as they have experienced both victories and struggles on the path to democracy and freedom.
I have worked for more than 15 years to strengthen the U.S.-Ukraine relationship and help improve the lives of Ukrainians. Even before my first visit to Kyiv in 1995, I supported health care programs for Ukraine, including partnerships between hospitals in the United States and Ukraine and airlifts of critical pharmaceuticals and other medical supplies. After hearing pleas from Ukrainian women in 1997 to help combat human trafficking, which had become a growing problem in Ukraine, I helped initiate an international effort to combat trafficking, including several programs specifically to help Ukraine. In 1996, I organized a 10th anniversary White House commemoration of the Chornobyl disaster and, as honorary chair of Chornobyl Challenge ’96, committed to continuing support for humanitarian efforts on behalf of those who suffer severe health consequences from the tragedy. I was honored to receive the Children of Chornobyl’s Relief Fund Lifetime Humanitarian Achievement Award in 1999 for my work in helping to improve the health of women and children in Ukraine. As Senator I traveled to Ukraine in 2005 and met with President Yushchenko and offered the U.S. government’s support for reform efforts to strengthen Ukraine’s democracy.
The United States has always favored the closest possible ties between NATO and Ukraine, including the creation of the NATO-Ukraine Council. We have always insisted on an open door policy for European democracies that want to join the Alliance. The enlargement of NATO is not directed against any state; NATO does not see any nation as its enemy. I pledge to support Ukraine’s efforts to meet the criteria for MAP and eventual membership. The United States should actively encourage our NATO Allies to deepen their own ties with Ukraine, a country that has broken with an authoritarian past and pursues good relations with all its neighbors. Ukraine deserves a chance to pursue its aspirations for a wider role in the Euro-Atlantic community. In the same spirit, I call on the Bush Administration to give Ukraine all the support it needs to complete its accession to the World Trade Organization.
As President, I will ensure that the United States does everything necessary to help Ukraine realize these important and achievable goals.
– Hillary Clinton
Statement from Senator Hillary Clinton on Ukrainian Membership in NATO
January 28, 2008 (From The American Presidency Project)
Posted in Americas, International Affairs | 15 Comments »
Posted by onparkstreet on 23rd April 2014 (All posts by onparkstreet)
I found the following on NATO expansion at Fas.org:
Russia is the main opponent to this expansion, because it interprets this as an increasing military presence on its borders. There is also a concern over old territorial claims to parts of Russia’s new neighbors that Moscow may try to pursue subsequently. For example, one vague scenario is of Russian intervention in the Eastern Ukraine to “protect the lives and property of Russian citizens”. Despite this, there has been a detectable thaw in Moscow’s opposition to NATO expansion as its leadership recognizes that the alliance no longer poses a threat to Russia, and this should be a manageable concern. For example, Russian Defense Minister Igor Rodionov recently stated the following: “I have become convinced NATO is not a threat to Russia, but I have millions to convince in Russia who are still worried that it is a threat.”(2)
United States Marine Corps
Command and Staff College
Marine Corps University
2076 South Street
Marine Corps Combat Development Command
Quantico, Virginia 22134-5068
MASTER OF MILITARY STUDIES
SUBMITTED IN PARTIAL FULFILLMENT
OF THE REQUIREMENTS FOR
THE DEGREE OF
MASTER OF MILITARY STUDIES
Captain Gyula Bene, Hungarian Army
If NATO expansion had occurred in a different way, one without the stripping of the Russian economy, aggressive democracy promotion as regime change, Iraq and Libya and a “global” NATO diluting its capabilities, what then?
Update: Great comments by all. In case it wasn’t clear from my series of posts, I agree with commenter dearieme: “But what would be the point of expanding NATO? It’s job was done. Declare victory and dissolve it: replace it by some low-key organisation that doesn’t worry the bear. And, above all, don’t, don’t, don’t interfere in places like Georgia.” In this post I was trying to point out that even if one thought NATO necessary, the nature of its expansion hollowed it out. But I think the US has to start thinking in a very different way about our security. We are not well-served by our foreign policy elite.
Posted in International Affairs | 14 Comments »
Posted by onparkstreet on 21st April 2014 (All posts by onparkstreet)
I didn’t find Robert Kagan persuasive when he said that what Vladimir Putin, now Russian’s prime minister, has to fear from NATO expansion into Ukraine and Georgia is only democracy, not a military threat [“Ideology’s Rude Return,” op-ed, May 2]. Mr. Kagan echoed President Bush on the subject in writing, “NATO is less provocative and threatening toward Moscow today than it was in [Mikhail] Gorbachev’s time.”
Both columnist and president are wrong. Mr. Putin sees the world around his immediate frontiers in a strategic sense of military options. NATO forces are in his face from Murmansk to the Baltic states, Romania and Turkey. Kyrgyzstan, while not in NATO, is certainly an American client with its large U.S. military airfield and staging area at Manas, near the capital. Armenia, Azerbaijan, Turkmenistan and Kazakhstan have pledged to the U.S. various forms of direct military cooperation.
Think about Mr. Putin’s reduced military options in backing up Russian policy if Ukraine and Georgia join NATO. Mr. Putin could not be clearer on this point: Russia will not tolerate further NATO expansion eastward. He has stated that to any media outlet that will listen. He has shown his seriousness on this point with stepped-up Cold War-style flights by his Tu-95 Bear bombers over our ships at sea and near Alaska and Great Britain.
We risk a major confrontation by disregarding Mr. Putin’s “red line” on this subject.
– Jack Broadbent
I’ve been digging through Congressional testimony, op-eds, letters to the editors and so on from the ’90s to the present. The number of warnings is amazing. Everyone from Phyllis Schafly to the late Senator Wellstone.
Note, recognizing the complicated multifactorial nature of the current Ukraine crisis is not the same as being an apologist. We have a form of unconventional warfare being practiced on the Ukraine by Russia; and we have a complicated form of political warfare being practiced in the Ukraine by the US, UK, EU and so on. The whole-of-it matters for understanding.
Posted in International Affairs, Russia | 3 Comments »
Posted by Jay Manifold on 20th April 2014 (All posts by Jay Manifold)
While this will not be a uniformly positive review, I must immediately note that the purely literary quality of Bill Quick’s Lightning Fall (subtitled either “A Novel of Destruction” or “A Novel of Disaster,” depending on whether one is looking at the spine or the cover of the paperback edition) ranks it alongside Pat Frank’s Alas, Babylon and comes within metaphorical striking distance of Larry Niven and Jerry Pournelle’s Lucifer’s Hammer. It is a classic page-turner and a serious threat to a good night’s sleep; I began reading it after awakening shortly before 3:00 AM one morning, expecting to drift off in a few minutes, and eventually noticed that I was somewhere around page 250 and the time was after 6:00 AM. This sort of thing has not happened to me more than a handful of times in a half-century of reading, and I read a lot.
Other reviews have included – well, not exactly spoilers, but more specifics about the events in the novel than I intend to provide here. I will mention three things that I think it useful for prospective readers to know, and then use the general thrust of the novel as a springboard for extended commentary of my own.
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Posted in Book Notes, Civil Society, Human Behavior, International Affairs, National Security, Predictions, Society, Systems Analysis, Terrorism, USA, War and Peace | 16 Comments »
Posted by onparkstreet on 10th April 2014 (All posts by onparkstreet)
Again, in a hurry so a bunch of comments I posted on Small Wars Journal blog. Various wealthy Ukranian businessmen have deep connections with the democracy promotion foreign relations bureaucracy and leadership. I have also found a whole set of academic literature on the nature of the eastern European immigrant vote and its supposed importance in swing states. An interesting area of scholarship.
Mr. Pinchuk, 53, is one of Ukraine’s only oligarchs to have deep ties to Washington. Many of the country’s richest businessmen are suspected of having links to organized crime and do not have visas to the United States, much less a relationship with a former and potentially future American president.
Still, Mr. Pinchuk’s image is not without blemish: His father-in-law is Leonid Kuchma, who was president of Ukraine from 1994 to 2005 and led a government criticized for corruption, nepotism and the murder of dissident journalists. As president, Mr. Kuchma privatized a huge state steel factory and sold it to Mr. Pinchuk’s consortium for about $800 million, which competitors said was a laughably low price.
Since 2006, Mr. Pinchuk has donated roughly $13.1 million to the Bill, Hillary & Chelsea Clinton Foundation. Mr. Clinton attends Mr. Pinchuk’s annual conferences in the resort city of Yalta, Ukraine, and Mr. Pinchuk attended the former president’s 65th birthday party in Los Angeles.
He was first introduced to Mr. Clinton in 2004 by Mr. Schoen, a New York-based pollster who has advised both Clintons. Mr. Pinchuk immediately began building a friendship with the former president and enthusiastically donating to Mr. Clinton’s causes, including an H.I.V. program that was later expanded into Ukraine.
Trade Dispute Centers on Ukrainian Executive With Ties to Clintons
So how and where do we start? Successfully linking military engagements within diplomatic realms means less books by George Patton and more by Henry Kissinger. Currently, you won’t find too many Kissinger books in military curricula. Conversely, you’ll find fewer books on special operations in diplomatic circles. A new operational art will require closing the cognitive gap between engagements and strategy within military and diplomatic practice and culture. This doesn’t require resources. It simply requires will.
Peace, Art and … Special Operations by Brian S. Petit
If one were to take unconventional warfare doctrine and look at in two ways (Russian toward Ukraine, and the US/EU toward Ukraine), what would one find and how could various narratives be developed, regardless of whether you support one or the other?
The military doesn’t control policy but I am intrigued by the “First, Do Harm” attitudes of our foreign policy and how it affects military activity. It’s the strangest thing. It’s also strangely destabilizing and dangerous business and it seems our Western and American traditional bureaucracies are making a messy, multipolar situation worse, IMO. The creation of chaos and disorder in reality; nation building and stability on paper. Very Council on Foreign Relations.
This “test of the West” must be met with “political and economic sanctions” if Russia proceeds in annexing Crimea, Mr. Durbin said. But he did not elaborate and did not hint at support for any U.S. military action.
The trip is set to last just two days. Mr. Durbin is scheduled to be back in town by March 16, when he is set to meet with — who else? — local Ukrainian community leaders (and voters) here.
It’s worth noting that Mr. Durbin has been a longtime backer of democracy movements in Ukraine and visited there in 2012. He also is a member of the Senate Foreign Relations Committee and serves on its Subcommittee on European Affairs.
Dick Durbin heads to Ukraine
Now, do the same for various constituencies in Russia and European countries, the UK, etc.
What now is the context within which you would consider some of the military-centric discussion taking place? How well does a focus only on American capabilites reflect reality?
Great power competition via proxy. If you keep meddling, you may provoke a response you don’t want. And the meddling is by ALL parties. All parties:
There’s Dominique Strauss-Kahn, who seems to be on every other panel over the two-day event, and is accompanied by a youthful looking French woman, who sports thigh-high leather boots that match her (also leather) miniskirt perfectly. DSK’s date is not being paid by the hour, another conference attendee confides, she’s a high-level French TV executive.
He speaks in a gentle, almost incomprehensible voice and calls upon political leaders to show some courage to reform governmental institutions. When one attendee asks which world politician might be able to do that, DSK looks around the room and shrugs his shoulders. It’s not attainable, he admits, but it doesn’t stop him from repeating that tired line and others.
“Globalization is a war,” says the man who would now be president of France, if not for allegations that he attempted to rape a New York City hotel maid. “A new kind of war. One that very few parties, especially in the EU, are prepared to fight.” He’s a man of many deep thoughts.
There’s also Gen. David Petraeus, the war hero and former CIA director, who tells me to bug off when I ask for an interview, and at a more gentle moment admits that he’s suffering from a hamstring injury that’s keeping him from running his morning miles. He, too, is hoping to say nothing worthy of being quoted. And he succeeds.
Larry Summers is here, too, in his first public appearance since withdrawing from being considered by President Barack Obama to be the next chairman of the Federal Reserve. I move in to ask about his withdrawal—was he pushed out by Obama, or did he willingly remove himself from consideration for a job he badly wanted? “I said no,” he screams at the reporter beside me who beats me to the Fed question. “I said no. I said no. I said no. No.”
Another Yalta Conference
Posted in International Affairs, War and Peace | 12 Comments »
Posted by onparkstreet on 3rd April 2014 (All posts by onparkstreet)
I’m in a bit of a hurry so I will post two comments here that I posted at Small Wars Journal. As time permits, I will add various links. The point is to start a discussion and analysis. I no longer consider myself as a member of one or the other party and don’t wish to discuss the partisan angle except in an outsider “analyst” way.
I often talk about democracy and diasporas in the comments section and Small Wars Journal has more than one article on the subject.
In this case, one interesting domestic factor to consider is the way in which NATO expansion has been presented to domestic constituencies such as Polish Americans from the 90s onwards. Some live in states like Illinois and Ohio and are swing voters in key areas. As Sec. State, Hillary Clinton spoke of the future of NATO as one of expansion and she did it in Chicago which has large Eastern European diasporan communities. The choice of venue and the talks given definitely fall into the nature of what some constituencies–immigrant and otherwise–have long been working toward. Couple this with Robert Kagan as a part her then Foreign Policy Council (I believe it was called this) and you have an example of an intellectual community embedding itself within institutions; in this case, the State Department.
This is what I meant in another comment. Power, ideology, immigrant diasporas, political blocs–these matter because events have a multifactorial basis. Faceless Bureaucrat at Kings of War has a brilliant post on multifactorality. There is a lot of propaganda out there from ALL sides. Fascinating.
And not a little scary given how things got in Kosovo when various militaries came up against each other.
Is Robert Spalding a Military Fellow at Council on Foreign Relations? There is confusion in this piece, IMO, between offense and defense and in using correct examples.
NATO was about Western Europe. Ukraine is not Germany. And nuclear weapons change things so that the other examples seem a bit odd to me.
But what I really wanted to say is that the Council on Foreign Relations seems to have this long time confusion between NATO as a defensive military alliance and the EU as a long term project to create a zone of peaceful activity and a collective or community.
The Ukraine as part of a US defense security perimeter within NATO confuses the various missions and mixes up defense with offense and democratization and markets with the nature of security perimeters and where the lines are drawn. Too close, and it is permanently unstable.
An example is a 1950’s book from Ben Tillman Moore, I believe, on the future of NATO. He speaks of a creating a community and this mixed-up nature of thought continues to the conversation today. I believe some of the California universities have this book on file in an open source format that can be accessed via internet.
I think that from the right–or hawk angle– this issue has been “outflanked” by the former Secretary of State should she choose to run in a future Presidential election. I also believe this background to be one factor leading up to the crisis in the Ukraine today. A dangerous business given the presence of nuclear weapons.
Posted in International Affairs | 6 Comments »
Posted by T. Greer on 20th March 2014 (All posts by T. Greer)
Originally posted at The Scholar’s Stage on 20 March 2013.
“The thing that hath been, it is that which shall be.” – Ecclesiastes 1:9 
Over the last few weeks the sections of the blogosphere which I frequent have been filled with predictions, advice, summaries of, and idle chatter about the situation in Ukraine and Crimea. I have refrained from commenting on these events for a fairly simple reason: I am no expert in Russian or Eastern European affairs. Any expertise that my personal experiences or formal studies allows me to claim is on the opposite side of Eurasia. Thus I am generally content to let those who, in John Schindler’s words, “actually know something” take the lead in picking apart statements from the Kiev or the Kremlin.  My knowledge of the peoples and regions involved is limited to broad historical strokes.
But sometimes broad historical strokes breed their own special sort of insights.
I have before suggested that one of the benefits of studying history is that it allows a unique opportunity to understand reality from the “Long View.” From this perspective the daily headlines do not simply record the decisions of a day, the instant reactions of one statesmen to crises caused by another, but the outcome of hundreds of choices accumulated over centuries. It allows you to rip your gaze away from the eddies swirling on the top of the water to focus on the seismic changes happening deep below.
To keep the Long View in mind, I often stop and ask myself a simple question as I read the news: “What will a historian say about this event in 60 years? How will it fit into the narrative that the historians of the future will share?”
With these questions are considered contemporary events take on an entirely new significance.
|Expansion of Russia, 1533-1894.
As I have watched affairs in Crimea from afar, my thoughts turn to one such ‘Long View’ narrative written by historian S.C.M. Paine. In Dr. Paine’s peerless The Wars for Asia, 1911-1949 she spares a few paragraphs to explain the broad historical context in which Soviet statesmen made their decisions. She calls this traditional course of Russian statecraft the Russian “strategy for empire”:
“The Communists not only held together all of the tsarist empire but greatly expanded it in World War II. They did so in part by relying on Russia’s traditional and highly successful strategy for empire, which sought security through creeping buffer zones combined with astutely coordinated diplomacy and military operations against weak neighbors to ingest their territory at opportune moments. Russia surrounded itself with buffer zones and failing states. During the tsarist period, the former were called governor-generalships, jurisdictions under military authority for a period of initial colonization and stabilization. Such areas generally contained non-Russian populations and bordered on foreign lands.
Russia repeatedly applied the Polish model to its neighbors. Under Catherine the Great, Russia had partitioned Poland three times in the late eighteenth century, crating a country ever less capable of administering its affairs as Russia in combination with Prussia and Austria gradually ate it alive. Great and even middling power on the borders were dangerous. So they must be divided, a fate shared by Poland, the Ottoman Empire, Persia, China, and post World War II, Germany and Korea. It is no coincidence that so many divided states border on Russia. Nor is it coincidence that so many unstable states sit on its periphery” (emphasis added). 
It is difficult to read this description and not see parallels with what is happening in Ukraine now (or what happened in Georgia in 2008). Dr. Paine’s description of Russian foreign policy stretches from the 18th century to the middle of the 20th. Perhaps historians writing 60 years hence will use this same narrative–but extend it well into the 21st.
 Authorized Version.
 John Schindler. “Nobody Knows Anything.” XX Committee. 16 March 2014.
 S.C.M. Paine. The Wars for Asia, 1911-1949. (New York: Cambridge University Press, 2012), pp. 83-84.
Posted in Book Notes, Europe, History, International Affairs, Russia | 2 Comments »
Posted by Jonathan on 20th March 2014 (All posts by Jonathan)
Michael Rubin in Commentary:
What self-described realists misunderstand when they pursue their cost-benefit analysis without emotion or regard for principle is that friendship and trust have value. In one chapter of Dancing with the Devil, I explore the history of intelligence politicization. Iraq may now be the marquee example upon which many progressives seize, but intelligence politicization occurred under every president dating back at least to Lyndon Johnson, if not before (the scope of my book was just the past half-century or so). Iraq intelligence was flawed, but the world will get over it, especially since it was consistent with the intelligence gathered by almost every other country and the United Nations. The betrayal of allies, however, is a permanent wound on America’s reputation that will not be easy to overcome.
This is a chronic problem. We were able to get away with being a fickle ally when we acted like a superpower. Our allies had no choice but to deal with us; our adversaries had to be cautious lest they provoke us. We betrayed Kurds, Iraqi Shiites and other groups without paying much of a long-term price. It was easy to be casual about our alliances. We could afford to see one-dimensional cynical calculations of national interest as realism.
But now that we behave like just another country we are beginning to pay more of a cost for our unreliability. Our design margin, in Wretchard’s phrase, has eroded. It is increasingly difficult for us to protect our remaining interests. The Obama foreign policy is an inverse force-multiplier.
Our geopolitical situation is going to deteriorate faster than most Americans expect.
Posted in International Affairs, Iran, Iraq, Israel, Middle East, National Security, Quotations, Russia, War and Peace | 13 Comments »
Posted by Michael Kennedy on 5th March 2014 (All posts by Michael Kennedy)
UPDATE #2: Investor’s Business Daily agrees about the best response to the Russian invasion of Crimea.
The West’s best Russia policy is a bold energy policy.
Russia’s economy is barely growing and is increasingly dependent on energy production. Oil and gas account for more than half of Russia’s federal tax revenues and about 75% of total exports. Three-fourths of natural gas shipments go to Europe. Europe is dependent on Russia, but the tables are starting to turn.
Drill, Baby, Drill ! Plus LNG exports.
UPDATE: Michael Totten has an update on Crimea.
The new ruler is a former gangster whose street name was “Goblin.”
Lawmakers were summoned, stripped of their cellphones as they entered the chamber. The Crimean media was banished. Then, behind closed doors, Crimea’s government was dismissed and a new one formed, with Sergey Akysonov, head of the Russian Unity party, installed as Crimea’s new premier.
It if was a crime, it was just the beginning. Akysonov’s ascent to power at the point of a gun presaged all that has happened since — the announcement of a referendum on Crimean independence and the slow, methodical fanning out of Russian forces throughout the peninsula, ostensibly to protect Russians here from a threat no one can seem to find.
But here’s the most interesting bit: Aksyonov’s sudden rise as Moscow’s crucial point man in Crimea has revived simmering allegations of an underworld past going back to the lawless 1990s, when Akysonov is said to have gone by the street name “Goblin,” a lieutenant in the Crimean crime syndicate Salem.
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Posted in Europe, Germany, History, International Affairs, Military Affairs, Obama | 37 Comments »
Posted by Zenpundit on 4th March 2014 (All posts by Zenpundit)
I have a new op-ed on the Crimean crisis up at the military and national security site, War on the Rocks.
Let’s Slow Roll Any Move Toward Crimean War II:
One of the more curious implicit assumptions about the crisis in Ukraine is that the subsequent occupation of the Crimea by Russia represents some kind of triumph for President Vladimir Putin and a defeat for the United States. It is a weird, strategic myopia that comes from an unrealistic belief that the United States should be expected to have a granular level of political control over and responsibility for events on the entire planet. We don’t and never can but this kind of political megalomania leads first to poor analysis and then worse policies.
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Posted in Europe, International Affairs, Military Affairs, Russia, USA, War and Peace | 38 Comments »
Posted by Michael Kennedy on 14th February 2014 (All posts by Michael Kennedy)
UPDATE #2: The western bloc is growing while the Atlantic bloc stagnates.
Venezuela, Brazil and Argentina are languishing in differing shades of turmoil, steadily losing ground to regional underdogs. The Pacific Alliance, an historic trade agreement between Mexico, Peru, Chile, and Colombia (and coming soon: Costa Rica), has the potential to recolor Latin America’s economic map and introduce some new regional powerhouses to the world stage.
Four nations are developing an initiative that could add new dynamism to Latin America, redraw the economic map of the region, and boost its connections with the rest of the world—especially Asia. It could also offer neighboring countries a pragmatic alternative to the more political groupings dominated by Brazil, Cuba, and Venezuela.
UPDATE: More on the role Cuba is playing in Venezuela now.
Belmont Club has a good post today on the collapse of Venezuela. The car manufacturers have announced they are closing their plants.
Toyota Motor Co. said it would shut down its assembly operations in Venezuela due to the government’s foreign exchange controls that have crippled imports and made it impossible to bring in parts needed to build its vehicles.
The country’s other car manufacturers, including General Motors and Ford, haven’t even started operations this year, while waiting for needed parts to arrive.
The oil field workers left years ago when the Chavez government cut oil workers’ pay.
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Posted in Americas, Civil Liberties, Cuba, International Affairs, Iran, Latin America | 20 Comments »
Posted by Jonathan on 12th February 2014 (All posts by Jonathan)
A couple of Iranian navy ships are slowly making their way to the Americas. What’s going on? J. E. Dyer has a long and thoughtful post:
That said, two things are worth reiterating. One, the U.S. does not have a constant-ready missile defense network that would protect the central and southeastern United States from an MRBM threat emanating from the south. We are unprotected on this axis. Shifting to a footing of 24/365 alert and anti-missile protection – e.g., by deploying Patriot systems in the continental U.S. or Navy Aegis ships offshore – would constitute a new, un-resourced requirement. We’d have to cut back defense operations elsewhere to meet it.
Two, our ability to react against the “shooter” is limited by the forces we have ready today. We don’t have extra ships and aircraft to deploy for a deterrent presence in Central America. We could react after the fact with B-2 bombers, and possibly other conventional forms of attack, such as submarine-launched cruise missiles and ballistic missiles with conventional warheads. But we would have to attack to mount a response, in (most probably) Venezuela or Cuba, and that response would be inherently escalatory.
It’s quite possible that our current administration would view that as a bridge too far. Realistically, I think the military would view the prospect with strong disfavor. Our ready forces would not have such a preponderance of power, or such advantages of geography, that we could do it easily and without inconvenience.
Bottom line: MRBMs down south would constitute a material transformation of our security footing in the hemisphere. It’s a development we couldn’t live with.
The “red flag” in this whole saga is the concentration of verbal threats from the Iranians, at a time when they are making an unprecedented naval deployment to the Americas; they are mounting an unusual outreach with Fatah; and they are close enough to nuclearization – even by the expected route, as opposed to the speculative North Korean option – that dashing to the finish line is the only step left.
The quality of some of the Iranian threats is deeply silly. But this doesn’t have the feel of random nuttiness to it. The Iranians are up to something.
I agree with Dyer, who implies in the post (and states explicitly in a comment) that the lowest-risk course of action for us would be to sink the ship of the two that has a hold big enough to transport ballistic missiles.
Dyer’s argument is long and well supported. You will have to read the whole thing to get the full thrust of her reasoning.
My take on Iran continues to be that if it gets nuclear weapons, as now seems certain, it will use them. It will not necessarily use them to attack Israel or otherwise blow some place up, at least not in the near future. It will use them to gain leverage, to extort valuable concessions from its adversaries, including us. Obama’s feckless appeasement of the mullahs has whetted their appetite for aggression and confirmed that they have at least three more years of clear sailing ahead. They will press this advantage. We are not going to be able to contain them, because they will continue to look for opportunities to place us in situations where our disinclination to fight will give them victories by default. The current situation, with the two ships, appears to be the opener. We have a lot to lose. If we want to stop Iran we are going to have to confront it militarily at some point. The sooner we do this the less costly it will be.
Posted in Americas, Cuba, Current Events, International Affairs, Iran, Israel, Military Affairs, National Security, War and Peace | 61 Comments »
Posted by Michael Kennedy on 31st December 2013 (All posts by Michael Kennedy)
This next summer will be 100 years since the fatal August of 1914. We live in a similar era of “history is over and everybody is happy.” See above. In August 1914, Germany’s major trading partners were Britain and France, as well as the US. There were people who believed that democracies that did business with each other never went to war. Sound familiar ?
UPDATE: I am not the only one thinking about this, of course. Here is another version. I worry less about China as a geopolitical rival to the US but a China Japan conflict would not be impossible.
The Telegraph has an excellent piece on the present world situation.
As we look forward to the First World War commemorations, three stark conclusions are hard to refute. First, that in the course of this century we will need a great deal of luck to avoid a nuclear catastrophe. Second, that the Enlightenment has failed. Third, that this can all be traced back to the Great War.
As a result of the Enlightenment and the Industrial Revolution, it seemed that mankind might make a decisive break with the scarcity and oppression that had characterised previous eras. There was, admittedly, one early warning. The French Revolution proved that a radical reconstruction of society on abstract principles was likely to end in tyranny and bloodshed. But after 1815, the 19th century developed into one of the most successful epochs in history. Living standards, life expectancy, productivity, medicine, the rule of law, constitutional government, versions of democracy – there was dramatic progress on all fronts, and in the spread of civilisation across the globe.
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Posted in Britain, Europe, France, Germany, History, International Affairs, Iran, Leftism, Military Affairs, National Security | 27 Comments »
Posted by Zenpundit on 25th October 2013 (All posts by Zenpundit)
[cross-posted from zenpundit.com]
The Violent Image by Neville Bolt
I have a new book review up at Pragati this morning. (Pragati magazine is India’s equivalent of The National Interest with some emphasis on freer markets and economic liberalism in the classic sense):
Lethal ideas and insurgent memory
….One expert who does acknowledge a paradigmatic shift and posits a powerful explanatory model for the behavior of what he terms “the new revolutionaries” is Dr Neville Bolt of the War Studies Department of King’s College, London and author of The Violent Image: Insurgent Propaganda and the New Revolutionaries. Taking a constructivist view of irregular military conflict as the means by which insurgents weave an enduring political narrative of mythic power and shape historical memory, Bolt eschews some cherished strategic tenets of realists and Clausewitzians. The ecology of social media, powered by decentralised, instant communication platforms and the breakdown of formerly autarkic or regulated polities under the corrosive effects of capitalist market expansion, have been, in Bolt’s view, strategic game changers “creating room to maneuver” in a new “cognitive battlespace” for “complex insurgencies”. Violent “Propaganda of the Deed”, once the nihilistic signature of 19th century Anarchist-terrorist groups like the People’s Will, has reemerged in the 21stcentury’s continuous media attention environment as a critical tool for insurgents to compress time and space through “…a dramatic crisis that must be provoked”.
As a book The Violent Image sits at the very verge of war and politics where ideas become weapons and serve as a catalyst for turning grievance into physical aggression and violence. Running two hundred and sixty-nine heavily footnoted pages and an extensive bibliography that demonstrates Bolt’s impressive depth of research. While Bolt at times slips into academic style, for the most part his prose is clear, forceful and therefore useful and accessible to the practitioner or policy maker. Particularly for the latter, are Bolt’s investigations into violent action by modern terrorists as a metaphor impacting time (thus, decision cycles) across a multiplicity of audiences. This capacity for harvesting strategic effect from terrorist events was something lacking in the 19th and early 20thcentury followers of Bakunin and Lenin (in his dalliances with terrorism); or in Bolt’s view, the anarchists “failed to evoke a coherent understanding in the population” or a “sustained message”.
Read the rest here.
Posted in Academia, Book Notes, India, International Affairs, Military Affairs, War and Peace | Comments Off
Posted by Trent Telenko on 23rd September 2013 (All posts by Trent Telenko)
There is a profound moral dimension to the photos and videos coming out of Kenya.
They are showing a multiracial civilization — an up-scale mall is the commercial epitome of modern civilization — under attack with multiracial cops and generally black African military saving multiracial civilians from faceless terrorist barbarians.
There is a huge message about the nature of our terrorist enemy that will resonate with the Western public in much the same way that pictures and video from Sarajevo did in the 1990s vis-a-vis the Serbs.
This Al Shabaab atrocity for publicity and fund raising will cost them and their Islamist co-belligerents far more in the long run.
Dehumanization works both ways.
Posted in Current Events, Human Behavior, International Affairs, Islam, Terrorism, War and Peace | 51 Comments »
Posted by Michael Kennedy on 14th September 2013 (All posts by Michael Kennedy)
I read left wing blogs most days to see what the other side thinks. I used to comment but the comments were usually deleted, often without notice, so the nasty responses to my comments would be there the next day but the offending comments would not appear.
The Huffington Post has become a very successful left wing site that advertises itself as moderate. I skim it most days and occasionally comment although my comments are all moderated and I can’t tell if they are deleted or not. I have a few followers so some must appear. Today I went there to see what the left thinks of the Syrian fiasco. The headline was not reassuring. That may change soon but it says “We Have a Deal !” The story follows with a rather naive heading.
The story has over 14 thousand comments, double the number when I read the story earlier this morning. The story is bad enough.
A diplomatic breakthrough Saturday on securing and destroying Syria’s chemical weapons stockpile averted the threat of U.S. military action for the moment and could swing momentum toward ending a horrific civil war.
Marathon negotiations between U.S. and Russian diplomats at a Geneva hotel produced a sweeping agreement that will require one of the most ambitious arms-control efforts in history.
The deal involves making an inventory and seizing all components of Syria’s chemical weapons program and imposing penalties if President Bashar Assad’s government fails to comply will the terms.
After days of intense day-and-night negotiations between U.S. Secretary of State John Kerry and Russian Foreign Minister Sergey Lavrov and their teams, the two powers announced they had a framework for ridding the world of Syria’s chemicals weapons.
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Posted in Anti-Americanism, Blogging, Conservatism, Current Events, History, International Affairs, Leftism, Middle East, Obama, Russia, Terrorism | 33 Comments »
Posted by Jonathan on 9th September 2013 (All posts by Jonathan)
Stephen J. Rosen has written a smart piece on how Obama forced AIPAC to back his planned military action against the Syrian regime. It’s titled “Pushed on the Bandwagon,” and he makes a strong case. Of course, AIPAC views action on Syria as a kind of proxy for action against Iran, and assumes that the former will make the latter more likely when push comes to shove. In fact, bopping Assad may well be a substitute for action against Iran: Obama hopes that by a relatively cheap shot at Syria, he’ll restore enough credibility to restrain Israel vis-à-vis Iran. Alas, a cheap shot won’t restrain Iran, and may even impel it to push its nuke plans forward. Israel has to face reality: it may or may not be a post-American world, but it’s a post-American Middle East. (And if the military operation goes badly it could be post-AIPAC, too.)
The Rosen piece is here. It’s worth reading, particularly for the reminder of how Obama operates politically (there are no appeals to principle; it’s all about arm twisting, threats and domestic political considerations).
Kramer’s interpretation is persuasive. Obama probably wants to use a weak attack on Syria, or preferably mere talk about Syria if he can get away with it, as a substitute for rather than a prelude to doing anything about Iran’s nuclear program. Syria is Iran’s puppet and if Obama were serious he’d be going after the mullahs. Instead he appears to be running out the clock until they have nukes, while also doing his best to degrade our military in order to lock in our impotence for the foreseeable future. (J. E. Dyer discusses our current weakness in detail: here, here and here.)
Whatever the course of Obama’s political career going forward, we are probably going to pay dearly for his ineptitude and anti-American malice.
Posted in Current Events, International Affairs, Iran, Israel, Jewish Leftism, Middle East, Military Affairs, National Security, Obama, Quotations, Terrorism, War and Peace | 7 Comments »
Posted by Trent Telenko on 9th September 2013 (All posts by Trent Telenko)
The thing that really bothers me in all the back and forth surrounding the American strike on the Assad Regime debate, and the Democratic Party aligned media spin of what the meaning of words “Red Line” mean, is how off-point from the interests of the American people it all is. The Assad regime’s use of Nerve Gas isn’t the Monica Lewinsky scandal. Deploying those Clinton era spin techniques over the definition of “Red Line” is the political equivalent of pointing and yelling “_Squirrel_!”
The bottom line is that if the Assad regime of Syria survives on the strength of chemical weapons of mass destruction, an incredibly dangerous to American national security situation will come to pass. The Chemical Weapons Convention will be dead, publicly murdered and discredited similar to the way the Kellogg-Briant Pact against war was in the face of Nazi rearmament. There will be an arms race for chemical weapons of mass destruction in the Mid-East & elsewhere. That will require the US military to rearm with either lethal chemicals or with tactical nukes — with all the costs that requires both financial and moral — in order to maintain a credible deterrent for future conventional military operations.
The issue with the Assad Regime’s use of chemical weapons of mass destruction is the Assad regime . The only fit punishment, one that will prevent catalytic proliferation of chemical and other weapons of mass destruction around the world, is the Assad Regime’s over throw. That overthrow is readily obtainable by American military forces and can be achieved without a single boot on the ground, nor a single foreign ally.
The fact that the Obama Administration is unwilling use grasp those means, and to politically justify their use with the same sort of weapons of mass destruction argument that Pres. George W. Bush deployed to justify regime change in Iraq, is the real strategic “Red Line” for Syria. It is a Red Line that the American people chose in electing a Democratic Senate in 2006 and in both electing and reelecting Pres. Obama (and a Democratic Senate) in 2008 and 2012.
It is a “Red Line” that has to be erased by competent and principled Presidential leadership that forthrightly explains the threat, continually over time, if Americans are to continue enjoying — its admittedly rapidly declining — freedom from police state surveillance at home.
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Posted in International Affairs, Iran, Iraq, Islam, Israel, Middle East, Military Affairs, National Security, Terrorism, Uncategorized, USA, Xenophon Roundtable | 24 Comments »
Posted by Jonathan on 6th September 2013 (All posts by Jonathan)
By showing that Obama’s America is unable and unwilling to keep its promises, Putin has widened the leadership void in the Middle East—as a prelude to filling it himself. By helping to clear Iran’s path to a bomb, Putin positions himself as Iran’s most powerful ally—while paradoxically gaining greater leverage with Saudi Arabia and the other Gulf States, who would much rather negotiate with Russia than with Iran, their sworn enemy. While the Americans were heading out of the Middle East, and the Chinese were too busy with their own internal debates about the future of their economy and society, Putin saw that something valuable had been abandoned on the world stage, and he took it. For the price of 1,000 dead civilians in Damascus, he has gained great power status in the oil-rich Middle East. Iran, for its part, gets the bomb, which isn’t great news for anyone, but was probably going to happen anyway.
[. . .]
Only time will tell whose evil is worse—Putin’s or Obama’s. While Putin delights in using the old-school KGB playbook to consolidate his one-man rule, and to expose the empty moral posturing of the West, Obama believes that he can talk his way into a workable accommodation between his own sense of morality and global reality. But the lesson of Obama’s fig leaf is that it is better to be honest about what we are doing in the world and why. If Putin baited a trap for the United States in Damascus, it was Obama who walked right into it. If Obama had stood up and declared that the United States had no vital interest in Syria but would stop Iran from getting nukes—and would prosecute the authors of the nerve-gas attack at The Hague—then Putin would have been trapped. The same would have been true if Obama had said nothing and blown up two or three of Assad’s palaces. But he did neither. Sometimes, well-meaning lies and political spin can be just as deadly, in the end, as nerve gas.
(Via Tom Smith.)
Posted in International Affairs, Iran, National Security, Obama, Russia, Terrorism, War and Peace | 5 Comments »
Posted by Ralf Goergens on 29th August 2013 (All posts by Ralf Goergens)
Max von Oppenheim was a German ancient historian, and archaeologist who also worked as a diplomat and spy for the German Empire during the First World War. In those latter two capacities, he basically tried to incite Jihad against the Entente powers. From Wikipedia:
During World War I, Oppenheim led the Intelligence Bureau for the East and was closely associated with German plans to initiate and support a rebellion in India and in Egypt. In 1915 Henry McMahon reported that Oppenheim had been encouraging the massacre of Armenians in Mosques.
Oppenheim had been called to the Wilhelmstrasse from his Kurfurstendamm flat on 2 August 1914 and given the rank of Minister of Residence. He began establishing Berlin as a centre for pan-Islamic propaganda publishing anti-Entente texts. On August 18 1914 he wrote to Chancellor Bethmann Hollweg to tell him that Germany must arm the Muslim brotherhoods of Libya, Sudan and Yemen and fund Arab exile pretenders like the deposed Egyptian Khedive, Abbas Hilmi. He believed Germany must incite anti-colonial rebellion in French North Africa and Russian Central Asia and incite Habibullah Khan, the Emir of Afghanistan, to invade British India at the head of an Islamic army. Oppenheim’s Exposé Concerning the Revolutionizing of the Islamic territories of our enemies contained holy war propaganda and ‘sketched out a blueprint for a global jihad engulfing hundreds of millions of people’. Armenians and Maronite Christians were dismissed as Entente sympathizers, quite useless to Germany nicht viel nutzen konnen. 
Because Germany was not an Islamic power the war on the Entente powers needed to be ‘endorsed with the seal of the Sultan-Caliph’ and on 14 November 1914 in a ceremony at Fatih Mosque the first ever global jihad had been inaugurated. The impetus for this move came from the German government, which subsidized distribution of the Ottoman holy war fetvas, and most of the accompanying commentaries from Muslim jurists, and Oppenheim’s jihad bureau played a significant role. By the end of November 1914 the jihad fetvas had been translated into French, Arabic, Persian and Urdu. Thousands of pamphlets emerged under Oppenheim’s direction in Berlin at this period and his Exposé declared that, “the blood of infidels in the Islamic lands may be shed with impunity”, the “killing of the infidels who rule over the Islamic lands” , meaning British, French, Russian, and possibly Dutch and Italian nationals, had become ” a sacred duty”. And Oppenheim’s instructions, distinct from traditional ‘jihad by campaign’ led by the Caliph, urged the use of ‘individual Jihad’, assassinations of Entente officials with ‘cutting, killing instruments’ and ‘Jihad by bands’,- secret formations in Egypt, India and Central Asia.
“During the First World War, he worked in the Foreign Ministry in Berlin, where he founded the so-called “message Centre for the Middle East”, as well as at the German Embassy in Istanbul. He sought to mobilize the Islamic population of the Middle East against England during the war and can be seen thus almost as a German counterpart to Lawrence of Arabia. The AA pursued a strategy of Islamic revolts in the colonial hinterland of the German enemy. The spiritual father of this double approach, the war first, by troops on the front line and secondly by people’s rebellion “in depth” was by Oppenheim.”
The German adventurer met with very little success in World War I. To this day, the British see him as a “master spy” because he founded the magazine El Jihad in 1914 in an effort to incite the Arabs to wage a holy war against the British and French occupiers in the Middle East. But his adversary Lawrence of Arabia, whom he knew personally, was far more successful at fomenting revolts.
Lawrence of Arabia, aka T. E. Lawrence was successful because he didn’t appeal to religious fervor, but rather to the far more basic sentiment of ethnic solidarity against an oppressor of different ethnic origin. In other words, the Arabs cared far more about their struggle against the Turkish Empire than they did about religion, leave alone jihad.
Posted in Britain, Christianity, Europe, France, Germany, History, International Affairs, Middle East, Military Affairs, Religion, Russia, War and Peace | 2 Comments »
Posted by Margaret on 29th August 2013 (All posts by Margaret)
While President Obama has been dithering about Syria, I’ve been nerdishly crunching numbers. On the web you can find every possible opinion about what the US ought to do, ranging from “Nothing,” to “Depose Assad.” Apart from the difficulty of achieving the latter goal, shouldn’t we think about what happens if Assad goes? Long term, some equally nasty types take over, and better-informed people than I can argue about just how bad that’s likely to be. But I haven’t seen any discussion of one likely immediate consequence.
At the beginning of this year, Syria had an estimated 2.6 million Alawites and 2.3 million Christians. Despite the refugee exodus, I believe most of those people are still in Syria. If Islamist groups like al-Nusra replace Assad,what are their chances of survival?
100,000 people have been killed so far, and that’s bad enough. But if we do seriously attempt to depose Assad, we should at least acknowledge the likelihood that another five million people will die.
The Holocaust is credited with six million deaths. Will the deaths of Syrian Alawites and Christians be less tragic because their murderers aren’t as well organized as the Germans? Will this massacre be okay because nobody will take the time to tattoo numbers on the victims’ arms?
Posted in International Affairs, Middle East | 12 Comments »
Posted by Zenpundit on 29th July 2013 (All posts by Zenpundit)
cross-posted from zenpundit.com
Since Pakistan is now attempting to get its victory over the United States in Afghanistan formally ratified, now seemed to be a good time to reflect on the performance of American statesmen, politicians and senior generals.
It has occurred to me that we have many books and papers outlining how to win wars. Certainly the great classics of The Art of War, The History of the Peloponnesian War and On War are the foremost examples, but there are also other useful classics in the strategic canon, whole libraries of military histories, memoirs of great commanders and an infinite number of PDFs and powerpoint briefs from think tanks and consultants. Strangely, none of these have helped us much. Perhaps it is because before running this war so few of this generation’s “deciders” read them en route to their law degrees and MBAs
We should engage in some counterintuitive thinking: for our next war, instead of trying to win, let’s try to openly seek defeat. At a minimum, we will be no worse off with that policy than we are now and if we happen to fail, we will actually be moving closer to victory.
HOW TO LOSE A WAR
While one of these principles may not be sufficient cause for losing an armed conflict, following all of them is the surest road to defeat.
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Posted in Afghanistan/Pakistan, Big Government, Book Notes, Current Events, History, International Affairs, Iraq, Military Affairs, National Security, Philosophy, Politics, Society, USA, War and Peace | 10 Comments »
Posted by Jay Manifold on 20th April 2013 (All posts by Jay Manifold)
Negative items (weaknesses and threats) first.
Overconcentration of political belief systems by geography and especially by vocation, notably in journalism; the corresponding threat is misdiagnosis of motivation and identity of perpetrators.
This was on full display over the past week, and although the most prominent examples were instances of the amazingly robust narrative about a supposed right-wing fundamentalist Christian underground, the persistence of which reveals a great deal about the mindset of the “liberal” bien-pensant, they’re not the only ones who have this problem. Claiming that people in Boston are cowering under their beds and wishing they had AR-15s, or casually accusing various (and singularly unimpressive) American politicians of being Communists, isn’t much better than fantasizing about entirely nonexistent WASP terrorists. And there has already been at least one wild-goose chase in recent years, the nationwide Federal investigation to find the co-conspirators of Scott Roeder in the assassination of George Tiller. He didn’t have any, and was known very early on to have acted alone. Your tax dollars nonetheless went to work; see also “memetic parasitism,” below.
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Posted in Anti-Americanism, Civil Society, Current Events, Human Behavior, International Affairs, Iran, Israel, Media, Middle East, National Security, Organizational Analysis, Politics, Predictions, Society, Terrorism, Tradeoffs, USA, War and Peace | 11 Comments »
Posted by Carl from Chicago on 31st March 2013 (All posts by Carl from Chicago)
In the US we have slowly debased our currency, the US dollar, and debt levels have risen at all levels of government. Since the US has extensive economic interests and huge reserves of oil, minerals, and agricultural capabilities, it will be a long time before the proverbial “wolf” shows up at our door.
In other countries, like Egypt, however, the wolf comes to the door right away. Egypt has an immense population concentrated along the Nile River and relatively few sources of income. Tourism has been badly damaged by the revolution against Mubarek and the rise of the Muslim Brotherhood hardly is something to put on a brochure at the pyramids, given that they have been known to slaughter their heathen guests in the past.
In order to feed their population, Egypt needs fuel, particularly diesel fuel. While Egypt does have some petroleum riches, they don’t have much refining capacity, so they must import diesel. In order to import diesel, you need “hard” currency, and the Egyptian dollar has been falling in value.
Finally, the Egyptian government distorts the local price of diesel so that it is subsidized, causing all sorts of negative impacts, including a huge black market, queueing, and all the other behaviors inevitably caused by hare-brained policies.
This situation was described in a recent NY Times article titled “Short of Money, Egypt Sees Crisis in Food and Fuel” which you can find here.
In a place like Egypt on the edge of starvation and social chaos, the safety net is thin, indeed, as they summarize in the last quote of the article:
At the empty Mobil gas station in town, attendants said profiteers, hoarders and desperate farmers were already threatening them with knives, clubs and shotguns. At harvest time, “People are going to kill each other,” said Hamdy Hassan, 37, a truck driver hanging out at the shuttered station.
Our understanding of economics in a theoretical basis and our casual acceptance of paper money has blinded most of us from understanding the practical, real-world economics that stands before us. People need goods or services, and they have to trade for it by providing alternatives that are acceptable to the seller.
If your currency is worthless, you need something else to trade, or your country will be bereft of necessary supplies. In this instance, Egypt needs refined petroleum products (diesel) or their entire economy will grind to a halt (and mass civil strife will immediately follow). As their currently depreciates relative to others in the region, their ability to purchase fuel is accordingly reduced.
This can be seen in medicines and fuel in Greece as well and likely soon to be Cyprus; it is assumed that these countries will be able to maintain first world status for their populace but it is difficult to see how that will happen while they have almost nothing to trade in return. One article about Cyprus ended with a quote from a local that if they don’t act as a banking haven “they will all just be selling ice cream and setting up deck chairs” to support any tourists that happen to visit.
With the implosion in Cyprus and likely deterioration of weakened countries like Egypt, Venezuela Argentina with minor home currencies, we appear to be entering a new era where things we’ve taken for granted about smooth business transactions and friction-less international banking and trade are going to be put to a severe test.
Cross Posted at LITGM
Posted in Economics & Finance, International Affairs, Middle East | 10 Comments »