What has happened to Venezuela?

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Venezuela is in the news as the country cannot even buy paper to print money.

This all goes back to 1998 when Chavez was elected by the people.

He was an army officer and had previously attempted to overthrow the government, a coup that failed.

in the early 1980s. Chávez led the MBR-200 in an unsuccessful coup d’état against the Democratic Action government of President Carlos Andrés Pérez in 1992, for which he was imprisoned. Released from prison after two years, he founded a political party known as the Fifth Republic Movement and was elected president of Venezuela in 1998.

Venezuela is an example of The Curse of Natural Resources.

The idea that resources might be more of an economic curse than a blessing began to emerge in debates in the 1950s and 1960s about the economic problems of low and middle-income countries.[3] The term resource curse was first used by Richard Auty in 1993 to describe how countries rich in mineral resources were unable to use that wealth to boost their economies and how, counter-intuitively, these countries had lower economic growth than countries without an abundance of natural resources. An influential study by Jeffrey Sachs and Andrew Warner found a strong correlation between natural resource abundance and poor economic growth.

Venezuela is only the latest and worst example. The history is depressingly familiar.

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What is going on in Syria ?

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Our feckless president has been lecturing the US public about various topics he considers important but what has actually been going on ? We do know that a Navy SEAL named Charles Keating was killed in Iraq.

(CNN)When a team of less than a dozen U.S. military advisers came under attack in Iraq Tuesday from more than 100 ISIS fighters, Navy SEAL Charles Keating IV was part of the force sent in to rescue them.

All the advisers made it back. Keating, a decorated combat veteran and star athlete who decided to enlist after the 9/11 attacks, did not.
Providing new details Wednesday about the operation that took the life of the grandson of prominent financier and World War II pilot Charles Keating Jr., Coalition spokesman Col. Steve Warren said that the clash between ISIS and the Kurdish Peshmerga forces the advisers were assisting was “a big fight, one of the largest we’ve seen recently.”

That’s Iraq, where Obama pulled out all US forces but is now sneaking a few back in, hoping no one notices.

In Iran, Obama’s foreign policy “advisor” named Ben Rhodes, admits it was all a lie.

“I immediately developed this idea that, you know, maybe I want to try to write about international affairs,” he explained. “In retrospect, I had no idea what that meant.” His mother’s closest friend growing up ran the Carnegie Endowment for International Peace, which then published Foreign Policy. He sent her a letter and included what would wind up being his only piece of published fiction, a short story that appeared in The Beloit Fiction Journal. It was titled “The Goldfish Smiles, You Smile Back.” The story still haunts him, he says, because “it foreshadowed my entire life.”

From writing short stories, Rhodes now writes fiction as national policy.

Rhodes strategized and ran the successful Iran-deal messaging campaign, helped negotiate the opening of American relations with Cuba after a hiatus of more than 50 years and has been a co-writer of all of Obama’s major foreign-policy speeches. “Every day he does 12 jobs, and he does them better than the other people who have those jobs,” Terry Szuplat, the longest-tenured member of the National Security Council speechwriting corps, told me. On the largest and smallest questions alike, the voice in which America speaks to the world is that of Ben Rhodes.

Is the policy that Rhodes writes working ? Better not to know.

Iran has been supporting Syrian president Bashar al-Assad. They have spent a lot of money and lives defending him against his people and the Russians. How is that working out ?

The Russians are back in Palmyra, which the ISIS types tried to destroy.

The orchestra played pieces by Johan Sebastian Bach and two Russian composers, Sergei Prokofiev and Rodion Shchedrin, in a second-century Roman amphitheater, the set for a 2015 film produced by the Islamic State that featured the execution of 25 people.

The contrast was intended to underscore what Russia sees as its underappreciated role in helping Syrian forces liberate Palmyra from zealots and fighting on the side of civilization against barbarism.

The Russians were so eager to make that point that they flew a group of reporters from Moscow to Syria and then bused them to Palmyra to see the performance. The production, attended by a heavily guarded V.I.P. guest list, was broadcast live on Russian state television.

Does Obama know about this ? Probably not. Ash Carter seems to be running foreign policy these days.

Rhodes’s opinions were helpful in shaping the group’s [Iraq Study Group] conclusions — a scathing indictment of the policy makers responsible for invading Iraq. For Rhodes, who wrote much of the I.S.G. report, the Iraq war was proof, in black and white, not of the complexity of international affairs or the many perils attendant on political decision-making but of the fact that the decision-makers were morons.

One result of this experience was that when Rhodes joined the Obama campaign in 2007, he arguably knew more about the Iraq war than the candidate himself, or any of his advisers. He had also developed a healthy contempt for the American foreign-policy establishment, including editors and reporters at The New York Times, The Washington Post, The New Yorker and elsewhere, who at first applauded the Iraq war and then sought to pin all the blame on Bush and his merry band of neocons when it quickly turned sour. If anything, that anger has grown fiercer during Rhodes’s time in the White House. He referred to the American foreign-policy establishment as the Blob.

How is Iran, Obama and Rhodes ally, doing ?

They seem to be having trouble as they are recruiting child soldiers, as they did in the Iraq-Iran War.

Iran’s regime has done this before. During the Iran-Iraq War, which killed around a million people between 1980 and 1988, the Basij recruited thousands of children to clear minefields.

After lengthy cult-like brainwashing sessions, the poor kids placed plastic keys around their necks, symbolizing martyrs’ permission to enter paradise, and ran ahead of Iranian ground troops and tanks to remove Iraqi mines by detonating them with their feet and blowing their small bodies to pieces.

Children have been fighting in wars as long as there have been wars, but shoving them into the meat grinder in the 21st century is a war crime expressly prohibited and sometimes even punished by all civilized governments. The International Criminal Court in The Hague, for instance, convicted Congolese warlord Thomas Lubanga Dyilo of war crimes in 2012 for “conscripting and enlisting children under the age of fifteen years and using them to participate actively in hostilities.”

The Basij is a paramilitary branch of the Iranian Revolutionary Guard Corps, or Pasdaran, and it’s commanded by the iron-fisted head of state, Supreme Leader Ali Khamenei. It’s mostly used for internal repression and provided many of the shock troops who brutally suppressed non-violent demonstrations during the Green Revolution in 2009.

Why are they now going back to the tactics of 1988?

“Second,” he continued, “the war in Syria and keeping the dictator Bashar Assad in power is so crucial for the Iranian regime’s supreme leader Ali Khamenei that he is willing to pay any price for this objective. In February in a meeting with the families of the regime’s forces who were killed in Syria, Khamenei said that if we did not fight in Syria, we would have had to fight with our opposition in major Iranian cities. Resorting to the tactic of mobilizing teenagers only leads to one conclusion, the mullahs are facing a deadly impasse in Syria.

So, the Russians seem to be winning and the Iranians are losing and who does Obama ally with ?

Rhodes’s innovative campaign to sell the Iran deal is likely to be a model for how future administrations explain foreign policy to Congress and the public. The way in which most Americans have heard the story of the Iran deal presented — that the Obama administration began seriously engaging with Iranian officials in 2013 in order to take advantage of a new political reality in Iran, which came about because of elections that brought moderates to power in that country — was largely manufactured for the purpose for selling the deal. Even where the particulars of that story are true, the implications that readers and viewers are encouraged to take away from those particulars are often misleading or false. Obama’s closest advisers always understood him to be eager to do a deal with Iran as far back as 2012, and even since the beginning of his presidency. “It’s the center of the arc,” Rhodes explained to me two days after the deal, officially known as the Joint Comprehensive Plan of Action, was implemented.

And some people think Trump will be a foreign policy disaster.

An update to growing up in Chicago.

Last summer I posted a couple of columns on growing up in Chicago in the 1940s.

My family history is a story of Chicago as my mother was born there and her parents met in Aurora, a suburb where my grandfather’s sister ran a boarding house. My grandmother lived there while working as a supervisor in a corset factory after she had moved to Chicago from Canada. My grandfather, Joseph Mileham, was a railroad engineer, the equivalent at the time of an airline pilot. My father’s family were farmers and lived 60 miles from Chicago. He and my mother met in Chicago when they were both working at a music company. They had a typical long Depression courtship which included a trip to California by my mother after she lost her mother and brother the same year, 1926.

My growing up was an almost idyllic childhood, although of course it had its moments.

The house I grew up in is shown here.

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That photo was taken a few years ago. I took a more recent one a few years ago and the owner of the house, a black guy about 35, came out to see who I was. He insisted on taking me on a tour. He was quite proud of it. He asked if I could send him photos of the house when we lived there. Here are a few more of them.

Now, that neighborhood was the subject of a feature story in the Chicago Tribune today.

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Trump and China

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Trump has, famously, gone after China on its trade policy.

In January 2000, President Bill Clinton boldly promised China’s inclusion in the World Trade Organization (WTO) “is a good deal for America. Our products will gain better access to China’s market, and every sector from agriculture, to telecommunications, to automobiles. But China gains no new market access to the United States.” None of what President Clinton promised came true. Since China joined the WTO, Americans have witnessed the closure of more than 50,000 factories and the loss of tens of millions of jobs. It was not a good deal for America then and it’s a bad deal now. It is a typical example of how politicians in Washington have failed our country.

There is an interesting analysis of China’s stumbling economy in the Observer today.

Here is a top ten guide for the perplexed.

Central Planning: Central planning, central planning. The history of the abject failure the Soviet Union’s five-year plans should tell you everything. Command and control economies that report to one man (in a nation of 1.3 billion people) are doomed from the start. Top down economic decisions often look bold and start out highly stimulative, but then degenerate into inefficiency, waste, politics and fraud.

Political Corruption: As the command and control economy generates liquidity, the demand and direction of the distributed capital becomes a political tussle. Decisions on how much steel, cement, coal, glass solar panels, high speed trains and shopping malls—in short everything—are not done in China as a cost benefit analysis by risk capital, a job difficult enough in itself. (Witness the capitalist economies’ booms and busts.) In China, this liquidity was allocated by political muscle, massive bribery and kickbacks, rather than economic justifications.

Basic Gangsterism: Counterfeiting, knockoffs, copyright infringement, theft of intellectual property these were a part of the booster rockets of China’s economic rise. It was all supposed to go away after China joined the WTO in 2001. It didn’t. It just became more institutionalized. Foreign companies needed Chinese “partners” in auto production, healthcare and technology. These “partners” crippled the potential productivity of the investments and led to frequent disputes and even more corruption… as in the GlaxoSmithKline scandals.

There are a total of nine reasons, many addressed in Trump’s piece above.

Now, the economy of China may be in free fall.

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The Collapse of Obama’s Syria Policy

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The US foreign policy conducted by the Obama administration has been a disaster all along. He abandoned Iraq and the rise of ISIS has followed. I have read “Black Flags“, which describes how the al Qeada organization of Abu Musab al-Zarqawi has morphed into ISIS after Obama pulled US forces out of Iraq. Now, as Richard Fernandez explains in another masterful analysis, Assad is about to rout the last of the non-ISIS opposition.

Reuters reports that Bashal al-Assad’s forces have made major advances behind a major Russian air offensive and are now poised to destroy the non-ISIS rebels opposing the Syrian government is rocking the foreign policy establishment. “After three days of intense fighting and aerial bombardment, regime forces, believed to include Iran-backed Shia militias, broke through to the formerly besieged regime enclaves of Nobul and Zahra.”

The Russians have been surprising US military leaders in ways that are very unpleasant.

The performance of the miniature, “rust bucket” Russian air force has formed an invidious baseline to what the USAF has achieved. The Independent reported:

Their army’s equipment and strategy was “outmoded”; their air force’s bombs and missiles were “more dumb than smart”; their navy was “more rust than ready”. For decades, this was Western military leaders’ view, steeped in condescension, of their Russian counterparts. What they have seen in Syria and Ukraine has come as a shock.

Russian military jets have, at times, been carrying out more sorties in a day in Syria than the US-led coalition has done in a month.

We are not serious and the US military has to wonder what will happen if Putin decides to take the Baltic republics.

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