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Grand Strategy for a Divided America

One thing has, finally, changed ... the US economy has, no thanks to governments, recovered from the 2007 great recession:

screen%20shot%202014-06-06%20at%208.44.47%20am.jpg


The recovery has been very, very, very long and painful and America's strategic capacity has been reduced, in measurable ways, by economic uncertainty.
 
It has not.  That chart is based on absolute job numbers, rather than the number of jobs relative to the size of the workforce.

If that number stayed at zero (the "recovery" line) year after year, you could always claim that the economy has neither "recovered" nor "improved".  But in reality, the real employment rate would be falling, which would not be an improvement.

All that chart does is provide a rough illustration of one measure of how a recovery is proceeding relative to other recoveries.

Since the US apparently just had a quarter of negative GDP growth, and the administration recently announced more energy-unfriendly policies, I expect another US recession imminently.

If the US experiences another recession - or merely flat-lines - then Canadian provincial governments expecting to simply "grow" their way back to fiscal solvency will be SOL.
 
As has been [pointed out in many other threads, one of the aims of America's enemies is to knock the US dollar out of its position as the global reserve currency. This has all kinds of implications (most of them bad), but I don't think that anyone has actually thought the entire thing through (especially second and third order consequences):

http://www.dailypundit.com/?p=87704

Question For Nemo, Kenny, and the Rest of the Gang – After the Collapse, What? Bill Quick
Posted on June 15, 2014 7:30 am by Bill Quick
PJ Media » Future Fear

Lending greater credence to the threat, the International Monetary Fund (IMF) has advocated the replacement of the U.S. dollar with Special Drawing Rights (SDRs); these would allow for certain assets traded in dollars to be priced using SDRs, a strategy that would reduce the dependence of central banks on U.S. Treasury bonds. “The dollar’s days as reserve currency are numbered,” blazons the Financial Times. Should an event of this magnitude come to pass, America will find itself virtually bankrupt. Every indicator — the unlimited expansion of the monetary base, the impact of prospective rising interest rates on servicing the debt, a paper-thin currency, the international threat of abandoning the U.S.-based financial system as a result of a federal Treasury suffering from prolonged dollarrhea — will have ominous consequences. Even as we speak, the Chinese devaluation of the yuan against the dollar spells further damage to the U.S. export market leading to greater unemployment (real unemployment is at least twice the official figure) — the outcome of a failed or adversarial leadership.

The currency shift has already started to happen. According to the ITAR-Tass news agency, Russia’s Gazprom Neft has “signed additional agreements with consumers on a possible switch from dollars to euros for payments under contracts.” The oil company’s head, Alexander Dyukov, told a press conference that “with Belarus, payments in roubles are agreed on [and] nine of ten consumers had agreed to switch to euros.” Dyukov is a leading proponent of the move toward ditching the dollar. In the same vein, Russia Today reports:

Over the last few weeks there has been a significant interest in the market from large Russian corporations to start using various products in renminbi and other Asian currencies, and to set up accounts in Asian locations,” Pavel Teplukhin, head of Deutsche Bank in Russia, told the Financial Times.

Such foreign currency manipulations, however, are a mere handsel prefiguring the chaos that eventual reserve-deprivation will unleash. Ultimately, one should not forget Friedman’s resonant dictum in Money Mischief: “The fate of a country is inseparable from the fate of its currency.”

Nemo chuckles at the notion that the US dollar might lose reserve currency status, and cites several factors not often mentioned, including the vast amounts of capital owned or controlled by the federal government in the form of land, minerals and mineral rights, and so on, as well as the massive power of the US military.

Unfortunately, I’ve come to doubt that analysis.  Obama has drastically weakened the US military, and seems bent on weakening it even more.  Meanwhile, he’s borrowing and spending (with the enthusiastic help of the “opposition” party) at the rate of trillions of dollars a year.  On top of that, does anybody believe that as long as we have any military at all, we’ll either let the furriners repossess the Bakken Oil Fields, or regard them as good collateral for further multi-trillion dollar loans/bailouts?

On top of that, Obama seems to be waging war on most of the other pillars that underly a sound economy.  Take productivity, for instance:  Generally, countries goose national productivity by putting more people to work.  Here in America, we are driving millions out of the work force entirely – and permanently.  With government help, the American edu system is a disaster from top to bottom.  Even our best universities are racked with the twin cancers of affirmative action and grade inflation, and in our primary education system, it sometimes seems a miracle if you find a sixth grader who can read at all.

The new generation, those Millennials we’re counting on to tote that barge and carry that bale of debt and spending into the future, are coming into adulthood badly educated, ignorant of basic economics, history, and the world at at large, buried under student loan debt, barred from buying homes or saving for the future, and less likely to marry and bear children than any generation in our history

And we’re going to fix all this by pretending that 20 million illegal aliens are going to make wonderful, productive citizens?

I’m just not as sanguine as nemo is.

So here’s a question for those of you who think about these things, and have some knowledge of history, economics, and the like:  If we do undergo a financial collapse caused by the dollar losing its reserve currency status, what is out best strategy for recovery after that event?
 
Henry Morgenthau Jr. and Harry Dexter White must be spinning in their graves.

The status of the US dollar as the global reserve currency was the centre piece of Breton Woods. The only other contender was gold. (Keynes offered some sort of silly idea of a gold based 'world' currency, but the two choices were: $(US) (then backed by gold) or gold, real, physical gold.) Richard Nixon finally knocked gold out of the equation and left the $(US) alone on the top of the heap.

There are two HUGE problems with SDRs:

    1. The IMF is not a sovereign nation, it has nothing of its own: no land, no gold, no oil, no people, no money - it's SDRs are, essentially, a myth, an accounting tool;

    2. The 'value' of SDRs is derived (yes, derived, just like the "derivatives" that damn near crashed the global economy) from the currencies on which it is based, and the $(US) is the largest component of that base.

To make SDRs useful they must, in my opinion, be both "guaranteed" by more than just vague promises (gold?) and much more broadly based (say by 20 countries, even by all of the OECD plus China and India, with none counting for more than, say, 15% or even 10% of the value of the SDR).
 
Well the current "Grand Strategy" is collapsing all over the globe. Whatever Administration takes power in 2016 will have a colossal task ahead of them:

http://pjmedia.com/eddriscoll/2014/06/18/the-collapsing-obama-doctrine/

The Collapsing Obama Doctrine

June 18th, 2014 - 1:50 pm

“Rarely has a U.S. president been so wrong about so much at the expense of so many,” Dick and Liz Cheney write in the Wall Street Journal:

Iraq is at risk of falling to a radical Islamic terror group and Mr. Obama is talking climate change. Terrorists take control of more territory and resources than ever before in history, and he goes golfing. He seems blithely unaware, or indifferent to the fact, that a resurgent al Qaeda presents a clear and present danger to the United States of America.

When Mr. Obama and his team came into office in 2009, al Qaeda in Iraq had been largely defeated, thanks primarily to the heroic efforts of U.S. armed forces during the surge. Mr. Obama had only to negotiate an agreement to leave behind some residual American forces, training and intelligence capabilities to help secure the peace. Instead, he abandoned Iraq and we are watching American defeat snatched from the jaws of victory.

The tragedy unfolding in Iraq today is only part of the story. Al Qaeda and its affiliates are resurgent across the globe. According to a recent Rand study, between 2010 and 2013, there was a 58% increase in the number of Salafi-jihadist terror groups around the world. During that same period, the number of terrorists doubled.

In the face of this threat, Mr. Obama is busy ushering America’s adversaries into positions of power in the Middle East. First it was the Russians in Syria. Now, in a move that defies credulity, he toys with the idea of ushering Iran into Iraq. Only a fool would believe American policy in Iraq should be ceded to Iran, the world’s largest state sponsor of terror.

This president is willfully blind to the impact of his policies. Despite the threat to America unfolding across the Middle East, aided by his abandonment of Iraq, he has announced he intends to follow the same policy in Afghanistan.

Despite clear evidence of the dire need for American leadership around the world, the desperation of our allies and the glee of our enemies, President Obama seems determined to leave office ensuring he has taken America down a notch. Indeed, the speed of the terrorists’ takeover of territory in Iraq has been matched only by the speed of American decline on his watch.

Well yes, Mr. Obama’s entire life has been dedicated to taking America down a notch or ten. Regarding the Cheney’s observation that “Mr. Obama had only to negotiate an agreement to leave behind some residual American forces, training and intelligence capabilities to help secure the peace,” this tragically prescient October 2011 Max Boot article, also in the Journal, reflects on why we (read: the Obama administration) abandoned Iraq to its fate:

The popular explanation is that the Iraqis refused to provide legal immunity for U.S. troops if they are accused of breaking Iraq’s laws. Prime Minister Nouri al-Maliki himself said: “When the Americans asked for immunity, the Iraqi side answered that it was not possible. The discussions over the number of trainers and the place of training stopped. Now that the issue of immunity was decided and that no immunity to be given, the withdrawal has started.”

But Mr. Maliki and other Iraqi political figures expressed exactly the same reservations about immunity in 2008 during the negotiation of the last Status of Forces Agreement. Indeed those concerns were more acute at the time because there were so many more U.S. personnel in Iraq—nearly 150,000, compared with fewer than 50,000 today. So why was it possible for the Bush administration to reach a deal with the Iraqis but not for the Obama administration?

Quite simply it was a matter of will: President Bush really wanted to get a deal done, whereas Mr. Obama did not. Mr. Bush spoke weekly with Mr. Maliki by video teleconference. Mr. Obama had not spoken with Mr. Maliki for months before calling him in late October to announce the end of negotiations. Mr. Obama and his senior aides did not even bother to meet with Iraqi officials at the United Nations General Assembly in September.

The administration didn’t even open talks on renewing the Status of Forces Agreement until this summer, a few months before U.S. troops would have to start shuttering their remaining bases to pull out by Dec. 31. The previous agreement, in 2008, took a year to negotiate.

The recent negotiations were jinxed from the start by the insistence of State Department and Pentagon lawyers that any immunity provisions be ratified by the Iraqi parliament—something that the U.S. hadn’t insisted on in 2008 and that would be almost impossible to get today. In many other countries, including throughout the Arab world, U.S. personnel operate under a Memorandum of Understanding that doesn’t require parliamentary ratification. Why not in Iraq? Mr. Obama could have chosen to override the lawyers’ excessive demands, but he didn’t.

As Glenn Reynolds noted late last year, “Ideology required that the Iraq War be a failure, even if it needed a nunc pro tunc effort to make it so.”

Naturally, Harry Reid is punching back in his usual reactionary style to the Cheneys’ remarks:


But to combine posts today by Jim Treacher and Moe Lane, where does Reid disagree with Cheney? On gay marriage, or on Iraq?

As the IRS scandal transforms Mr. Obama into what Glenn describes as “President Double-Asterisk” in his latest USA Today column, and as Obama’s poll numbers crater, no wonder once and future O-Bot Chuck Todd has temporarily turned on the Most Trusted Man at MSNBC:

“This poll is a disaster for the president,” Todd said. “You look at the presidency here: Lowest job rating, tied for the lowest; lowest on foreign policy. His administration is seen as less competent than the Bush administration, post-Katrina.”

“On the issue of do you believe he can still lead? A majority believe no. Essentially the public is saying your presidency is over,” Todd added.

“Unfortunately for America, though, it’s not,” Ace adds:

While most Presidents would feel the evaporation of support and scale back their program appropriately, Obama has all but explicitly declared that he holds the American people in absolute contempt.

He does not need public support to enact his agenda by executive tyrannical fiat, just as he does not need Congress.

So we’re in a difficult period: The president has lost the support of the American people, and so by rights has no mandate to do much of anything except play golf, and yet the president doesn’t care at all what the people think.

Though he will of course continue playing golf.

Which brings us back full circle with the Cheneys’ remarks at the start of this post.
 
Thucydides said:
Well the current "Grand Strategy" is collapsing all over the globe. Whatever Administration takes power in 2016 will have a colossal task ahead of them:

http://pjmedia.com/eddriscoll/2014/06/18/the-collapsing-obama-doctrine/
The Collapsing Obama Doctrine

June 18th, 2014 - 1:50 pm

“Rarely has a U.S. president been so wrong about so much at the expense of so many,” Dick and Liz Cheney write in the Wall Street Journal


But some might argue that (with a partial exception being awarded to Ronald Reagan for doing as Mrs Thatcher advised) pretty much every US president since Dwight D Eisenhower has been wrong, not always 100% wrong ... but never, not even with Reagan, more right than wrong.
 
A bit more on the evolving political culture of the United States. As technology, demographics and economics change, current political parities and institutions are becoming less and less relevant to the issues of the day. In the past, the Americans saw the dissolution of the Federalist and Whig parties; with the Democrats and the Republicans replacing them respectively. The TEA Party movement is one manifestation of this trend in the modern era, with TEA Partiers generally proponents of Classical Liberalism. Now, we are seeing a similar movement developing on the other side of the divide; candidates challenging Democrats for not being "Progressive" enough. I'm not sure what you could call this movement, but there is a lot of money behind the Progressives and a lot of organizations dedicated to increasing the breadth and depth of the Progressive movement (especially Government employee unions, but also many other organizations and individuals who feed off of or otherwise use the power of the State). Instapundit's Glenn Reynolds interviews a challenger to NY Governor Cuomo:

http://www.usatoday.com/story/opinion/2014/07/14/zephyr-teachout-tea-party-new-york-cuomo-election-column/12596343/

Five questions with Zephyr Teachout: Column
Glenn Harlan Reynolds 12:17 p.m. EDT July 14, 2014
Zephyr Teachout will challenge New York Gov. Andrew Cuomo in the upcoming primary election.

AP_WORKING_FAMILIES_PARTY_64675362
(Photo: Hans Pennink, AP)

The Tea Party movement has been busy challenging establishment politicians like Eric Cantor and Thad Cochran, but the challenge to the establishment is also happening on the left. In particular, New York Gov. Andrew Cuomo is facing a primary challenge from two law professors, Zephyr Teachout of Fordham, and Tim Wu of Columbia, essentially for not being liberal enough. Is this a New York one-off, or does it portend a national trend? I caught up with Teachout last week and asked her a few questions:

Q. It's unusual for a sitting governor to face a primary challenge. Lots of Democrats think that Andrew Cuomo has a future in national politics. Why did you choose to challenge him?

A: I supported candidate Andrew Cuomo four years ago; I believed, as many New Yorkers did, that he would take on Albany corruption and fight for a Democratic Senate. But he has become part of the broken system he once promised to fix, and people in the state are hurting because of it. He has taken over $6 million from LLCs (a kind of corporation that can give many times as much to campaigns as a regular corporation) through a loophole he once promised to fix. Instead of funding public schools — where class sizes are ballooning — he transferred money to tax breaks for banks and millionaires. He has abandoned his initial promises and abandoned the state.

Q. Would it be simplistic to say that your platform is more friendly to public-employee unions? What's a better way to describe it?

A: The core of my platform is to change the role of money in politics, support public education and break up monopoly power. All of these are fundamental prerequisites to a responsive democracy. The piece that is new — and old — about my platform is dealing with monopoly power. People are out of power now, not just in their politics where they feel that their voices don't matter, but in their workplace and in the marketplace. I want to revive the old American belief -- exemplified by Jefferson (who wanted an anti-monopoly clause in the Constitution), Teddy Roosevelt and FDR -- that concentrated private power threatens democratic institutions. For instance, I think New York should take the lead and stop the Comcast-Time Warner merger. The job of government should be to support an open, competitive marketplace and an open, competitive democracy.

Q. You've noted that despite Gov. Cuomo's pledge to crack down on corruption in Albany, things appear to have gotten worse. What would you do differently?

A: Most of the corruption in Albany is legal corruption, not illegal bribery. It comes from campaigns being funded by millionaires and corporations. To fix it, I would ensure that we created a system that allowed people to run for office who don't have rich friends, aren't independently wealthy or don't have to make promises to the wealthiest Americans. Our current system doesn't make it possible to run for office if you are a thoughtful middle-class community leader, unless you find a few extremely wealthy sponsors, who might expect certain things of you. That doesn't make any sense. New York should follow the lead of New York City and Connecticut and pass a system — commonly called "Fair Elections" — which gives candidates for office the support they need to get heard, if they show strong grassroots support.

Q. What's your position on Gov. Cuomo's Startup New York initiative, which offers steep tax breaks for businesses that locate or expand in New York?

A: Gov. Cuomo's economic development policy boils down to favors — tax breaks. Startup New York, his marquee project, is effectively just a 10-year corporate giveaway. What this means is that the program is cutting deals, not forming substantive policy. Pitting states and even areas within New York against one another just to shift around jobs and economic activity does nothing to promote sustainable business and job creation, nor guarantee it'll stick around once the giveaways expire. A real economic development policy would address the root issues hampering business growth, like access to credit and marketplaces so dominated by giant companies that it is impossible to compete. Swaths of New York lack the fast and reliable Internet you need to compete in a 21st century economy. So a real innovation policy would push cable companies to compete and build out and improve service.

Q: You're opposed to the Comcast/Time-Warner merger. Why?

A: The public should have access to unfettered communication and commerce, and the Internet is increasingly the medium where that takes place. A merger of two monopolist Internet providers that already provide bad and overpriced service is not good for New York. Both of these carrier companies have vertically integrated into direct ownership of content, including one of America's most important news networks. The merger will lead to higher prices for New Yorkers. The merger will make it easier for Comcast to subject New York businesses to tolls, under the threat of being shunted over to special slow lanes. Any of New York's small and medium-sized businesses that can't afford the new tolls will have to try to compete from the slow lane. The merger will allow Comcast to cable-ize the Internet, by making it nearly impossible for New York citizens to cut the cord and take control of the content they watch. Comcast will control New York sports programming and could prevent companies like Netflix and start-up programming providers from offering content that is competitive with cable.

How will Teachout and Wu do? If they do well enough, it may be a sign that the Democratic Party is ready to move left. Stay tuned.

Glenn Harlan Reynolds, a University of Tennessee law professor, is the author of The New School: How the Information Age Will Save American Education from Itself.

(This interview was edited for length and clarity by USA TODAY.)

I suppose that Zypher Teachout does not recognize the irony of increasing the monopoly power of the State in order to select the "winners" and "losers" under her economic model. The Fascist Corporate State was another example of that kind of thinking, and we should know how that turned out...
 
This is just another example of how current institutions and structures are failing to keep up with changes in economics, demographics and technology. The question is: "What will come to replace the current institutions and structures?" History is not kind, the most common answer is "The Man of the White Horse", who is no friend to liberal or conservative regimes or political thought. Still, it is always intstrutive to think about the problem, perhaps there is a solution, although I confess I certainly don't see what it is yet:

http://pjmedia.com/richardfernandez/2014/08/15/looking-for-the-attractor/

Looking for the Attractor
Posted By Richard Fernandez On August 15, 2014 @ 3:55 pm In Uncategorized | 96 Comments

There’s a crisis in punditry. Disasters have become altogether too predictable. Almost everyone saw the costs of instability in Eastern Europe coming. The bill is now due, as Ukrainian artillery destroyed a “significant” part of a Russian armored column [1] alleged to have entered Ukraine. Russia denied this occurred, but the tumbril of disaster jolts along yet another rut and the State Department [2] has accused the Russians of violating an arms control agreement, too late to make a difference. Just another opportunity missed.

“Vladimir Putin does not take his obligations seriously, whether they be arms control or respect for the integrity of Ukraine and Georgia,” [Mike Rogers (R., Ala.), chairman of the House Armed Services subcommittee on strategic forces] Rogers said in a statement announcing the legislation

“He doesn’t believe he has anything to fear from President Obama,” he added.

True Mike, but tell us something we don’t know. The West African Ebola outbreak continues to spread as WHO [3] admits the “the magnitude of the Ebola outbreak had been ‘vastly’ underestimated.” “WHO officials also said in a Thursday statement that they share concerns that current numbers do not reflect the true gravity of the situation.”

Ebola treatment centers are filling fast as they are opened. “The World Health Organization says beds in Ebola treatment centers in West Africa are filling up faster than they can be provided.”  Reality is overcoming the narrative. Ebola, 2,000+: Spin doctors, 0.

Spokesman Gregory Hartl said in Geneva Friday that the flood of patients to newly opened treatment centers shows that the outbreak’s size is far larger than official counts show. WHO said Thursday that recorded death and case tolls may “vastly underestimate the magnitude of the outbreak.”

Hartl said that an 80-bed treatment center opened in Liberia’s capital in recent days filled up immediately. The next day, dozens more people showed up to be treated.

And the administration is being sucked back into the Middle East [4] by strategic considerations they chose to ignore, but found they could not.  It would be altogether too tiresome to recapitulate the observations that this would happen. Nobody read the map, except ISIS and the map, like Ebola, won.

Speaking of narratives, what happened to the post-racial America or the post-fascist America Obama was supposed to herald? Gone already. Perhaps the most striking thing about the reaction to the race riots in Ferguson, Missouri is that the public can’t make up their minds who to dislike more, the looters or the paramilitary police.

Recent polls [5] show that most people are aware we are not in the promised era of Hope and Change.  They know they are in the Epoch of Hopelessness and Stasis..

“With an ‘everything is terrible’ mindset, I’m mostly thinking about how after several years of cantankerous and unproductive lawmaking in Washington, there are very few political figures or institutions who the public trusts anymore,” the Washington Post’s polling analyst Scott Clement told Politico.

The latest Wall Street Journal/NBC News poll shows President Barack Obama’s approval ratings are at a record low. A new Gallup Poll shows confidence in the economy is dropping. And overall, poll ratings for Republicans and Democrats are down, according to a CBS Poll.

Nobody really believes that the leaders of the nation or the West in general can find their way out of the mess they’ve created. Not after all that huffing and puffing about climate change, transgender initiatives, Obamaphones, “getting engaged with your disease” and other varieties of trivial pursuit.

The Big Ticket problems they’ve pooh-poohed for so long are here. Food, energy, security and demography.  In a short, the world of things. Boo. Your design margin has been canceled. Politicians are running for cover. New York Magazine [6] acidly mocked the failure of Hillary and Barack to publicly “hug it out” over foreign policy differences, accompanying the story with a picture that looked more like two pickpockets trying to palm off the evidence on each other.

Did she plant the evidence in my pocket? [7]

Two has-been boxers hanging on to the ropes. Stayin’ alive. Stayin’ alive. Ah, ha, ha, ha, stayin’ alive.

But all of these developments were too predictable. They are hardly worth a post. President Obama’s political fortunes look as broke as Robin Williams after two alimony settlements and he seems just as depressed as the late comedian. Peter Wehner, writing in Commentary [8], quotes Joe Scarborough as saying that president Obama “has checked out… He wants to be the next, I hear it time and time again from his close political allies. This man wants to be an ex-president.”  Being a leader when everything you’ve touched has turned to dust is no fun.  He’s not coming out of this one with his likeness carved on Mount Rushmore. But you knew that already.

That the current system is in flux is no longer in doubt. What everyone wants to know is where the attractor [9] is. “In dynamical systems, an attractor is a set of physical properties toward which a system tends to evolve.” Where is the world going? Who is going to lead it? The conventional wisdom is that it was Barack or Hillary who would do the leading.  But it looks more like no mas!

What punditry needs now is not someone who can interpret the past — that’s easy — but someone who can glimpse the further future.  But even the greatest minds have no crystal ball. The mists of uncertainty shroud all. One can only repeat what Winston Churchill said: “Now this is not the end. It is not even the beginning of the end. But it is, perhaps, the end of the beginning.”

Article printed from Belmont Club: http://pjmedia.com/richardfernandez

URL to article: http://pjmedia.com/richardfernandez/2014/08/15/looking-for-the-attractor/

URLs in this post:

[1] destroyed a “significant” part of a Russian armored column: http://www.telegraph.co.uk/news/worldnews/europe/ukraine/11037397/Ukraine-artillery-destroys-part-of-Russian-armoured-column-says-Poroshenko.html
[2] State Department: http://freebeacon.com/national-security/destabilizing-threat/
[3] WHO: http://www.voanews.com/content/who-ebola-outbreak-vastly-underestimated/2415134.html
[4] being sucked back into the Middle East: http://www.latimes.com/world/middleeast/la-fg-iraq-maliki-20140814-story.html#page=1
[5] polls: http://www.newsmax.com/Newsfront/pollsters-americans-angry-surly/2014/08/10/id/587879/
[6] New York Magazine: http://nymag.com/daily/intelligencer/2014/08/meaning-of-hillarys-promise-to-hug-it-out.html
[7] Image: http://pjmedia.com/richardfernandez/files/2014/08/barack_hillary.gif
[8] Peter Wehner, writing in Commentary: http://dc-web2.commentarymagazine.com/2014/08/15/the-presidency-is-breaking-obama-even-as-obama-has-broken-the-nation
[9] attractor: http://en.wikipedia.org/wiki/Attractor
 
A pretty good summary from Instapundit today on what has happened and what *we* will have to be willing to do to return to something like stability in our time:

http://pjmedia.com/instapundit/194199/#respond

AUGUST 31, 2014
A FACEBOOK FRIEND WHO’S TOO MODEST TO WANT CREDIT HERE POSTED THIS:

Let’s accept, arguendo, that the outgoing DIA chief is right, and that we are now in an era of danger similar to the mid-1930s. How did we get here? It’s worth looking back into the mists of time — an entire year, to Labor Day weekend 2013. What had not happened then? It’s quite a list, actually: the Chinese ADIZ, the Russian annexation of Crimea, the rise of ISIS, the Russian invasion of Ukraine, the fall of Mosul, the end of Hungarian liberal democracy, the Central American refugee crisis, the Egyptian-UAE attacks on Libya, the extermination of Iraqi Christians, the Yazidi genocide, the scramble to revise NATO’s eastern-frontier defenses, the Kristallnacht-style pogroms in European cities, the reemergence of mainstream anti-Semitism, the third (or fourth, perhaps) American war in Iraq, racial riots in middle America, et cetera and ad nauseam.

All that was in the future just one year ago.

What is happening now is basically America’s version of “It’s a Wonderful Life.” The President of the United States — supported to an exceptional extent by an electorate both uncomprehending and untrusting of the outside world — is Clarence the Angel, and he’s showing us what the world would be like if we’d never been born, Unsurprisingly, Bedford Falls is now Pottersville, and it’s a terrible place. Unfortunately we do not get to revert to the tolerable if modest status quo at the end of the lesson: George Bailey will eventually have to shell the town and retake it street by street from Old Man Potter’s Spetsnaz.

But the larger point here is not what’s happening, because what’s happening is obvious. Things are falling apart. The point is how fast it’s come. It takes the blood and labor of generations to build a general peace, and that peace is sustained by two pillars: a common moral vision, and force majeure. We spent a quarter-century chipping away at the latter, and finally discarded the former, and now that peace is gone. All this was the work of decades.

Look back, again, to Labor Day weekend 2013, and understand one thing: its undoing was the work of mere months.

You know, I was going to do a column with a John Birmingham reference in place of It’s a Wonderful Life, but it’s the same point, isn’t it? (Bumped).
 
From "The Federalist"

http://thefederalist.com/2014/09/11/americas-consistent-and-coherent-foreign-policy/

I believe this fellow is saying what our ERC has been saying for a while now: Americans are Jacksonians and the fringes (elites) drive debates that make them ever more irrelevant.

a convenient target. One of the more persistent biases of America’s foreign policy elites is that the American public is schizophrenic and incoherent in their foreign policy views – that they want to have their cake and eat it too, or have peace without the necessary steps to sustain it.

Despite the opinion of elites on either extreme – whether motivated by humanitarian or democracy project aims – the fact is that, 13 years after 9/11, it’s remarkable how coherent and consistent the views of Americans really are. It’s the Obama view that is incoherent, bouncing between the sentiments of elites and uncomfortable in a position of leadership. Americans, for most of the 20th and 21st centuries, have been remarkably consistent in their views.

The American people are innately Jacksonian. They rejected the elite pushes on Syria and Libya for the same reason they now want to destroy ISIS – because they believe the purpose of the American military shouldn’t be to nation build or police countries, but to kill and destroy evildoers who threaten us and our interests. That’s why the humanitarian agenda and the democracy agenda couldn’t take hold in Syria – Assad was smart enough not to chop heads off Americans (that doesn’t make for good Vogue profile material, after all).

The media has trumpeted various polls over the past few years regarding the shifting opinions of Americans. But if you reconsider the elections of the past few years as the expression of American beliefs about foreign policy, a different picture emerges. Americans want a military that is strong but rarely deployed, and then deployed only to kill and destroy those who are clearly enemies of the nation and our interests. They want a state that maintains security without mass violations of privacy. They dislike permanent prisons and reject the droning of American citizens, but have less objections to the “enhanced interrogation” of prisoners (Hollywood has convinced Americans of two things over the past decade: gay marriage is great, and torture works).

Presidential candidates have responded to this consistency. The George W. Bush of 2000 rejected nation-building explicitly. The Barack Obama of 2008 emphasized a rollback of privacy and prisoner overreach while doubling down on the need to kill Osama Bin Laden and eradicate threats in Afghanistan. The thread that runs through the language of both candidates is entirely Jacksonian – a belief that those who hit us should not escape our reach, and that we ought to follow to the ends of the earth those who did us harm.

This is why Americans who balked at military action against Assad and Qhaddafi now endorse it when it comes to ISIS. It is not a shift of opinion on their part. It is consistent and coherent – a belief that there will always be dictators, and they will do awful things, but that the actions of evil men do not become our concern until the point when they take up arms against us and murder our fellow Americans. When that happens, no matter how slow to anger we are as a people, we make our wrath into a policy that will echo on the other side of the world.

Let the humanitarian interventionists or Code Pink isolationists talk of incoherence or inconsistency. The reality of America’s innately understood foreign policy doctrine is very simple and straightforward: Don’t tread on me.

I would summarize the thought this way: Americans don't want a constabulary of infanteers.  They want a destructive force of gunners.

They have no interest in engaging the rest of the world.  They just want to be left alone .... and want to beat bloody anybody that doesn't leave them in peace.
 
And today is the 13th anniversery of 9/11. A quote from Civilization and its Enemies is in order:

Forgetfulness occurs when those who have been long inured to civilized order can no longer remember a time in which they had to wonder whether their crops would grow to maturity without being stolen or their children sold into slavery by a victorious foe....They forget that in time of danger, in the face of the enemy, they must trust and confide in each other, or perish....They forget, in short, that there has ever been a category of human experience called the enemy.
"That, before 9/11, was what had happened to us. The very concept of the enemy had been banished from our moral and political vocabulary. An enemy was just a friend we hadn't done enough for yet. Or perhaps there had been a misunderstanding, or an oversight on our part -- something that we could correct....

"Our first task is therefore to try to grasp what the concept of the enemy really means. The enemy is someone who is willing to die in order to kill you. And while it is true that the enemy always hates us for a reason, it is his reason, and not ours."
 
Amateurs indeed. I look forward to next week's follow up:

http://business.financialpost.com/2014/09/11/lawrence-solomon-western-intervention-gone-wrong/?__federated=1

Lawrence Solomon: Western intervention, gone wrong

Lawrence Solomon | September 11, 2014 | Last Updated: Sep 12 7:43 AM ET
More from Lawrence Solomon | @LSolomonTweets
U.S. President Barack Obama delivers a prime time address from the Cross Hall of the White House on Wednesday in Washington, DC.  Vowing to target the Islamic State with air strikes "wherever they exist", Obama pledged to lead a broad coalition to fight IS and work with "partner forces" on the ground in Syria and Iraq.

From the Middle East to Ukraine, blunders by the U.S. and its allies have done incalculable harm to the West’s interests

“We will degrade and destroy” ISIS, President Obama said this week, in reversing course by resuming an old war in Iraq and starting a new one in Syria. ISIS needs to be destroyed and it is fitting that the U.S., Western allies in tow, is taking on the responsibility for the job. The U.S. and its allies, after all, created the ISIS monster, and much more, too. They created most of the instability that the West today confronts elsewhere in the Middle East, in North Africa, and beyond, in Ukraine.

ISIS (which has also been known as al Qaida in Iraq (AQI), ISI, ISIL and the Islamic State) is a product of the Arab Spring, the West-inspired uprising against secular Arab strongmen that empowered Islamists. In Egypt, the Muslim Brotherhood rose to power after President Obama helped it depose President Mubarak. In Libya, Islamist factions carved up the country through civil war after France’s President Nicolas Sarkozy and England’s Prime Minister David Cameron (with Obama leading from behind) decided to oust Muammar Gaddafi. Gaddafi’s vast arsenals of advanced military hardware were then black marketed throughout the Middle East to enable Islamists, most notably ISIS in Syria.

Related
Saudi Arabia could fight ISIS with oil — if it can bear the price
U.S., Arab allies agree to join in fight to ‘destroy’ ISIS extremists in Iraq and Syria
Kelly McParland: Obama, at war, establishes himself as America’s most reluctant warrior

To date, Islamist groups and Western-backed rebels have failed to topple Syrian strongman Bashar Assad but they have succeeded in weakening him through civil war, leading to six million forced to feel their homes and some 200,000 deaths. The big winner among those Islamist groups has been ISIS, previously a loser in Iraq, from which it retreated following George Bush’s successful surge. Brought back from the dead in the killing grounds of a weakened Syria, ISIS remerged as a powerhouse able to also roar back in Iraq and establish beachheads in Egypt, Libya and the Palestinian territories.

The West is weaker for undermining Assad, a strongman who protected the country’s many Christians while successfully suppressing Islamists: There would be no ISIS threat if Assad had remained firmly in power. The West is also weaker for toppling Mubarak, a pro-Western leader who protected Egypt’s Christian minorities while successfully suppressing Islamists: Egypt is no longer solidly in the Western camp and Islamists hold sway in much of its Sinai Peninsula. And the West is weaker for toppling Gaddafi: He had abandoned his nuclear weapons program, had become an ally of the West against al Qaida, and also successfully suppressed Islamists. These Arab strongmen had kept Islamists at bay. In destroying their rule, the West has empowered the Islamists who seek to destroy us.

There would be no ISIS threat if Assad had remained firmly in power
The West’s blunderbuss interventions apply as well to Ukraine, a camel of a country with split identities, its industrialized east oriented to Russia, its agricultural west aspiring to becoming European. This economic basket case — per capita GDP of $3,900 — has little value to either Russia or the West, except as a pawn in geo-political games. The stakes in this game involve the expansion of NATO into Ukraine, which would allow the West to place its missiles literally on Russia’s border.

The bad moves in the Ukraine game were mostly the West’s. Rather than leaving well enough alone, the U.S. spent $5-billion trying to turn Ukraine into a Western-style democracy, culminating in the orchestration of months of violent demonstrations in Kiev’s Independence Square. The European Union, for its part, tried to lure Ukraine westward with offers of membership. When Ukraine’s corrupt pro-Russian president said “nyet” — Ukrainians vacillate between electing corrupt pro-Russian and corrupt pro-Western leaders — the U.S. gave the go-ahead for a coup that saw the president flee for his life.

Many of these machinations were on display in a phone conversation — believed leaked by the Russians — showing the involvement of the U.S. State Department, Vice President Biden (his role was to seal the deal by confirming to the insurrectionists that the U.S. had their backs) and the U.N. This is the phone conversation that included the now-notorious order from Victoria Nuland, the U.S. Assistant Secretary of State, to “F**k the E.U.,” a reference to the American decision to proceed despite the E.U.’s misgivings at overthrowing a democratically elected government.

The Ukrainian Civil War continues, the toll to date including some 2500 dead, including the 300 passengers on Malaysian Flight 17. Russia, much the better chess player, has acquired Crimea. The West, so far, has accomplished nothing meritorious; with winter approaching, the E.U. now worries that Russia’s next move will be a cutback in its energy shipments, to underline who’s in control.

In describing the carnage and lesser consequences that a clueless West has caused through its recent diplomatic and military involvements abroad, I am not making an isolationist’s case against interventionism. I am making a case against amateurism. My case for interventionism comes in the sequel to this column, next week.
 
Part 1 of 2

Two American scholars, Andrew Erickson[/u] and [url=http://scholar.princeton.edu/apl/home]Adam Liff are concerned that America is just following along with a new Chinese narrative and they are in danger of falling into the so called Thucydides Trap wherein a great power commits strategic suicide in trying to defeat a weaker one by allow it, the weaker antagonist, to define the battles. Here, reproduced under the Fair Dealing provisions of the Copyright Act from Foreign Affairs is their argument:

http://www.foreignaffairs.com/articles/142178/andrew-s-erickson-and-adam-p-liff/not-so-empty-talk
foreign-affairs-logo.jpg


The Danger of China's “New Type of Great-Power Relations” Slogan

By Andrew S. Erickson and Adam P. Liff

OCTOBER 9, 2014

Ever since his February 2012 visit to Washington, Chinese President Xi Jinping has championed his vision for a “new type of great-power relations” between China and the United States. The Obama administration, in an apparent desire to avoid conflict with a rising China, seems to have embraced Xi’s formulation. In a major speech last November, U.S. National Security Adviser Susan Rice called on both sides to “operationalize” the concept. And during a March 2014 summit with Xi, U.S. President Barack Obama declared his commitment to “continuing to strengthen and build a new model of relations.”

In uncritically signing on to the “new type of great-power relations” slogan at the Obama-Xi Sunnylands summit in June 2013, the Obama administration fell into a trap. It has what is most likely its last major chance to dig itself out when Obama visits Beijing next month for a follow-up summit. And he should make use of the opportunity. Although some U.S. officials dismiss rhetoric as insignificant and see this particular formulation as innocuous, Beijing understands things very differently. At best, U.S. acceptance of the “new type of great-power relations” concept offers ammunition for those in Beijing and beyond who promote a false narrative of the United States’ weakness and China’s inevitable rise. After all, the phrasing grants China great-power status without placing any conditions on its behavior -- behavior that has unnerved U.S. security allies and partners in the Asia-Pacific. At worst, the formulation risks setting U.S.-Chinese relations on a dangerous course: implicitly committing Washington to unilateral concessions that are anathema to vital and bipartisan U.S. foreign policy values, principles, and interests.

Already troubling, each additional invocation of a “new type of great-power relations” grows more costly. Instead of reactively parroting this Chinese formulation, Washington must proactively shape the narrative. It should explicitly articulate and champion its own positive vision for U.S.-Chinese relations, which should accord China international status conditionally -- in return for Beijing abiding by twenty-first-century international norms, behaving responsibly toward its neighbors, and contributing positively to the very international order that has enabled China’s meteoric rise.

[size=12pt]THUCYDIDES TRAP


The “new type of great-power relations” concept is appealing to so many policymakers and scholars in both countries because of a misplaced belief in the Thucydides Trap. This is a dangerous misconception that the rise of a new power inescapably leads to conflict with the established one.

The Chinese side has exploited this oversimplified narrative to great effect: Xi himself has warned of such confrontation as “inevitable,” and leading Chinese international relations scholars claim that it is an “iron law of power transition.” Hillary Clinton, the former U.S. secretary of state, echoed the sentiment at the 2012 U.S.-China Strategic and Economic Dialogue when she said that the United States and China’s efforts to avoid a catastrophic war are “historically unprecedented” and that both sides need to “write a new answer to the age-old question of what happens when an established power and a rising power meet.” A year later, at the Sunnylands summit, Tom Donilon, then the U.S. national security adviser, explained that efforts to reformulate the U.S.-Chinese relationship are “rooted in the observation … that a rising power and an existing power are in some manner destined for conflict.”

Such sentiments are puzzling, especially coming from Americans. They deny human agency (and responsibility) for past -- and possibly future -- disasters. And they reject progress. Further, they are based on a selective reading of modern history, one that overlooks the powerful ways in which the norms that great powers have promoted through their own rhetoric and example have shaped the choices of contemporaneous rising powers, for better or for worse. Most problematic, the narrative of needing a “new model” to avoid otherwise inevitable conflict is a negative foundation, a dangerous platform on which to build the future of U.S.-Chinese relations.

To be sure, Clinton, Donilon, and their successors might understand all this but are prepared to dismiss rhetoric and focus instead on action. This is surely what U.S. Secretary of State John Kerry had in mind at the 2014 U.S.-China Strategic and Economic Dialogue when he noted that “a new model is not defined in words. It is defined in actions.”

Even so, flirting with the Chinese-proposed slogan for bilateral relations, as the administration has done, while dismissing it in private is dangerous. Chinese leaders take such formulations extremely seriously: the phrase “new type of great-power relations” appears repeatedly in their speeches, and permeates Chinese media and public discourse on U.S.-Chinese relations. Uncritical embrace creates an unsustainable situation wherein each side mistakenly expects unrealistic things of the other, worsening the consequences when those expectations are ultimately dashed.

Even worse: There doesn’t even seem to be a clear consensus within Washington about what exactly “new type of great-power relations” actually means. Interviews suggest that the administration’s definition hinges on two prongs: cooperation in areas where U.S. and Chinese interests overlap and constructive management of differences where they don’t.

But Beijing could intend any number of things. A theoretically benign interpretation is reflected in former State Councilor Dai Bingguo’s remarks at the fourth U.S.-China Strategic and Economic Dialogue: “respect each other and treat each other as equals politically; carry out comprehensive, mutually beneficial and win-win cooperation economically; build up mutual trust and tolerance and share responsibilities in security matters; learn from and promote each other culturally; and seek common ground while reserving differences and live side by side in peace with each other ideologically.”

For others, the dirty secret is that “new type of great-power relations” isn’t that new. It is disturbingly redolent of a very old type of values and order, in which spheres of interest, zero-sum gains, and great-power exceptionalism ruled the day. Indeed, Shi Yinhong, a leading Chinese IR scholar and counselor to China’s State Council, has characterized it as a call for America and China to “respect each other’s interests and dignity” as both a “nation-state in the traditional sense” and a “rare and special” great power.

An even more cynical interpretation -- and one supported by interviews with current and former U.S. officials -- is that, under the new formulation, Xi expects the United States to make certain accommodations concerning China’s “core interests.” Indeed, in the February, 2012, speech in which Xi first introduced the concept, he explicitly identified “respect for each other’s core interests” as one of four areas constituting a “new type of great-power relations.” But no U.S. administration is likely interested in making such accommodations. And there is no evidence that Beijing would be willing to make meaningful concessions of its own; in a July 2012 paper, Cui Tiankai, China’s ambassador to the United States, claimed that “China has never done anything to undermine the US core interests” and that, even in its own neighborhood, China is merely a “victim on which harm has been imposed.”

Whatever Chinese leaders’ intentions in promoting the concept actually are, in other words, they don’t look good.

TROUBLING TERMINOLOGY

The Obama administration’s continued flirtation with the “new type of great-power relations” concept appears to have been misunderstood in Beijing and beyond, and risks being misperceived as a precipitous change in U.S. power and policy.

First, the terminology paints an absurd picture of a United States too feeble to articulate, much less defend, its own vision for promoting peace, stability, and prosperity in Asia -- only furthering perceptions of U.S. decline in China and its neighbors. The Obama administration’s rhetoric, however well intentioned, sometimes exacerbates this misperception. A case in point: Kerry’s statement to his Chinese counterparts at the 2014 U.S.-China Strategic and Economic Dialogue that “there is no U.S. strategy to try to push back against or be in conflict with China.” The Obama administration is certainly right to try to allay concerns -- unfounded but extremely prevalent in China -- that the United States is attempting to “contain” China. But it is ill advised to do so in a manner so easily heard as an apology.

Second, Beijing’s interpretation of “new type of great-power relations” appears to be linked to an assumption that China’s growing material power has made a power transition inevitable, compelling Washington to accommodate Beijing’s claims in the South and East China Seas now. Such arguments reveal ignorance, first, of fundamental changes to the international order since the days of might makes right and, second, of the manifold sources of U.S. power and preeminence. By allowing the terms “great-power relations” and “equality” to permeate official discourse on bilateral relations, Washington risks tacitly condoning such anachronistic views of international politics.

Third, China’s economic growth is slowing, and the country’s future is ever more uncertain as various societal and other domestic headwinds strengthen. Decades of extraordinary economic and military growth make many Chinese assume that the rapid increases in material power will continue indefinitely. That is unlikely, but the consequences of such bullishness are real and unsettling: growing expectations within China for U.S. concessions and anachronistic calls for “equal” treatment and “space.”

If that weren’t enough, the “new type of great-power relations” concept is also unnerving to U.S. allies and partners in the region. If fears of abandonment grow, some may seek other -- potentially more destabilizing -- options for deterring China.

Such concerns are particularly intense in Japan -- arguably Washington’s closest ally and the best situated to stand up to China independently, if necessary. Xi has already attempted to exploit the Obama administration’s embrace of the “new type of great-power relations” concept to score a victory in the Senkaku (Diaoyu) Islands dispute. During a September 2012 meeting with U.S. Defense Secretary Leon Panetta, Xi invoked the “important consensus” he claimed that the two had reached in defining their relationship and then pivoted immediately to the most critical flashpoint in Chinese-Japanese relations: “We hope that the U.S., from the point of view of regional peace and stability, will be cautious, will not get involved in the Diaoyu Islands sovereignty dispute, and will not do anything that might intensify contradictions and make the situation more complicated.” The record of China’s Japan policy during the past two years suggests the Xi administration is intent on isolating Japan -- bypassing Tokyo while engaging Washington -- and keeping the country relegated to a status inferior to China and the United States. Indeed, as Australian scholar Amy King argues, China’s conception of a “new type of great-power relations” leaves little room for Japan.

End of part 1
 
Part 2 of 2

A POSITIVE ASIA-PACIFIC VISION

The U.S.-Chinese relationship is too important to leave up to a vague slogan rooted in a cynical nineteenth-century premise: that the two countries must do something historically unprecedented to avoid war. In the twenty-first century, an effective international order hinges on powerful states supporting an inclusive, equitable, win-win system that has the same rules for the strong and the weak. Might can no longer make right.

That is why the Obama administration should immediately replace the “new type of great-power relations” formulation with a specific, reciprocal, results-oriented, and positive vision -- one that accords China international status in proportion to its active support for the international order that has greatly benefited China over the past four decades. There is precedent for such a framework, most notably the Bush administration’s 2005 call for China to be a “responsible stakeholder.” Such an approach not only welcomes China’s peaceful rise but also explicitly charts a pathway to its coveted status as a great power.

Starting now, U.S. policy and rhetoric should build on China’s desire for membership in the great-power club by setting goals for increased contributions to the international system and greater provision of public goods. Washington must also disabuse Beijing of the notion that it can negotiate with the United States over the heads of China’s less “great” neighbors and emphasize that, to be a true twenty-first-century great power, Beijing must follow its own Golden Rule and treat other countries as it wants to be treated. Disputes with smaller neighbors are an excellent opportunity for Chinese leaders to show the world what their self-professed vision of “democracy in international relations” actually means in practice.

Above all, the United States must not give tacit approval to a Chinese shortcut to great-power status out of exaggerated fear of inevitable conflict. It must approach Beijing from a position of strength. Like Washington, Beijing has powerful incentives to avoid a military clash. It enjoys tremendous benefits from trading partners across the Asia-Pacific -- in particular, the United States and Japan -- and relies on exports to sustain its national development and domestic stability. Washington need not accept disproportionate responsibility for avoiding conflict.

To be sure, explicit rejection of a major foreign policy formulation crafted by China’s preeminent ruler may have costs. But the costs of continued acceptance will only be higher. At a minimum, to avoid validating “new type of great-power relations” Washington should immediately cease using the phrase. If the U.S. government does use the term, it must always follow with a forceful, explicit definition of what “new type of great-power relations” is and what it is not. Washington should also call out aspects of China’s current behavior -- namely its coercion of its neighbors and apparent efforts to undermine U.S. alliances and key international norms -- as antithetical to both U.S. interests and Beijing’s coveted recognition as a great power. That should convince Beijing that even considering division of the Asia-Pacific into spheres of interests is a nonstarter.

Given its political system, history, and deep realpolitik traditions, Beijing’s resistance to Washington’s socialization efforts is hardly surprising. China will not do everything the United States wants, and some Chinese observers will cynically interpret U.S. attempts to reformulate the relationship as a ploy to burden China and contain its rise. And that is why Washington must be patient as it provides a consistent focal point for Chinese leaders’ pursuit of great-power status, strengthening the hand of moderates and internationalists in domestic policy debates. China’s growing (and U.S.-encouraged) contributions to peacekeeping and antipiracy have been rightly lauded. Greater contributions in humanitarian assistance and disaster relief and sea-lane security should be as well.

LAST CHANCE

To its credit, in recent months, the Obama administration has gotten tougher with Beijing. Finally realizing that China was controlling the narrative, the administration has publicly opposed Beijing’s destabilizing policies, restated unambiguously Washington’s support for Article 5 of the U.S.-Japan Mutual Security Treaty, criticized the mishandled November 2013 rollout of China’s East China Sea Air Defense Identification Zone, and publicly questioned the basis for China’s overexpansive, vague South China Sea claims.

This increasingly firm rhetoric is laudable but insufficient. Without more attention and support from key administration principals, the rebalance risks being seen in the region as more words than action -- ironic, given the similar criticism that U.S. officials have leveled at the “new type of great-power relations” formulation. Since the Asia-Pacific Rebalance is a major component of Obama’s foreign policy legacy, it is especially puzzling that the administration has not articulated a formal strategy for the region. As a first step, the administration should promptly communicate a positive, concrete vision for the Asia-Pacific’s future and China’s role in it. To guide further U.S. action and signal resolve, this should then be codified in a formal policy document, released in conjunction with a major speech by Kerry or by Obama himself.

None of this is to deny the role of material power in shaping China’s trajectory. As China expert Thomas Christensen has argued, the United States’ military presence in the Asia-Pacific and its focus on solidifying ties with regional allies and partners are not only hedges against possible Chinese provocations but also important means for influencing Beijing’s foreign policy decision-making. Indeed, the story of China’s rise remains incomplete. No doubt, we’re in a rough patch today. But despite widespread claims to the contrary, nothing about China’s future course -- and certainly not military conflict -- is predetermined. How things play out will depend on the choices made by leaders in many countries, but especially in Beijing and Washington.

The so-called Thucydides Trap to the contrary, history tells us that the trajectories of rising powers can be shaped in powerful ways by the leading power’s behavior and rhetoric. And on those terms, “new type of great-power relations” is a deeply flawed concept. The United States must jettison it and replace it with one that charts a clear pathway for the type of twenty-first-century great power that the United States wants China to become. A more effective vision for U.S.-Chinese relations should be positive and aspirational, designed to shape Beijing’s decision-making by tying China’s eventual attainment of great-power status to behaving like a twenty-first-century great power, including by making positive contributions to international peace, stability, prosperity, and especially by behaving responsibly toward its neighbors. That would in effect be a truly new type of great-power relations -- and Washington must consistently lead by example. For many, U.S. Asia policy is directly linked to Obama’s legacy. Yet his administration is increasingly focused elsewhere, with real-world consequences. For the Obama administration’s China policy, it’s time for proactive leadership.


I share their concern. I see no indication that this administration/the Democratic Party or the potential next ones, including both the Republicans and the Tea Party, have any notions about what China is trying to do. China wants to "win," by their definition, without fighting, in any meaningful way, and they plan to do that, in large part, by controlling the narrative which the whole world understands: China's rise in inexorable and a 'good thing' and America's decline is concomitant and also 'good.'
 
While an active, informed and engaged Administration could take much action to exploit this opportunity, the convergence of interests between Saudi Arabia and the West in this instance indeed works to our benefit. Of course, we should always keep in mind that the Saudis are not our friends or allies (except as allies of convenience for now...)

http://www.nytimes.com/2014/10/15/opinion/thomas-friedman-a-pump-war.html?_r=1

A Pump War?
OCT. 14, 2014
Thomas L. Friedman

Is it just my imagination or is there a global oil war underway pitting the United States and Saudi Arabia on one side against Russia and Iran on the other? One can’t say for sure whether the American-Saudi oil alliance is deliberate or a coincidence of interests, but, if it is explicit, then clearly we’re trying to do to President Vladimir Putin of Russia and Iran’s supreme leader, Ayatollah Ali Khamenei, exactly what the Americans and Saudis did to the last leaders of the Soviet Union: pump them to death — bankrupt them by bringing down the price of oil to levels below what both Moscow and Tehran need to finance their budgets.

Think about this: four oil producers — Libya, Iraq, Nigeria and Syria — are in turmoil today, and Iran is hobbled by sanctions. Ten years ago, such news would have sent oil prices soaring. But today, the opposite is happening. Global crude oil prices have been falling for weeks, now resting around $88 — after a long stretch at $105 to $110 a barrel.

The price drop is the result of economic slowdowns in Europe and China, combined with the United States becoming one of the world’s biggest oil producers — thanks to new technologies enabling the extraction of large amounts of “tight oil” from shale — combined with America starting to make exceptions and allowing some of its newfound oil products to be exported, combined with Saudi Arabia refusing to cut back its production to keep prices higher, but choosing instead to maintain its market share against other OPEC producers. The net result has been to make life difficult for Russia and Iran, at a time when Saudi Arabia and America are confronting both of them in a proxy war in Syria. This is business, but it also has the feel of war by other means: oil.

The Russians have noticed. How could they not? They’ve seen this play before. The Russian newspaper Pravda published an article on April 3 with the headline, “Obama Wants Saudi Arabia to Destroy Russian Economy.” It said: “There is a precedent [for] such joint action that caused the collapse of the U.S.S.R. In 1985, the Kingdom dramatically increased oil production from 2 million to 10 million barrels per day, dropping the price from $32 to $10 per barrel. [The] U.S.S.R. began selling some batches at an even lower price, about $6 per barrel. Saudi Arabia [did not lose] anything, because when prices fell by 3.5 times [Saudi] production increased fivefold. The planned economy of the Soviet Union was not able to cope with falling export revenues, and this was one of the reasons for the collapse of the U.S.S.R.”

Indeed, the late Yegor Gaidar, who between 1991 and 1994 was Russia’s acting prime minister, observed in a Nov. 13, 2006, speech that: “The timeline of the collapse of the Soviet Union can be traced to Sept. 13, 1985. On this date, Sheikh Ahmed Zaki Yamani, the minister of oil of Saudi Arabia, declared that the monarchy had decided to alter its oil policy radically. The Saudis stopped protecting oil prices. ... During the next six months, oil production in Saudi Arabia increased fourfold, while oil prices collapsed. ... The Soviet Union lost approximately $20 billion per year, money without which the country simply could not survive.”

Neither Moscow nor Tehran will collapse tomorrow. And if oil prices fall below $70 you will see a drop in U.S. production, as some exploration won’t be cost effective, and prices could firm up. But have no doubt, this price falloff serves U.S. and Saudi strategic interests and it harms Russia and Iran. Oil export revenues account for about 60 percent of Iran’s government revenues and more than half of Russia’s.

The price decline is no accident. In an Oct. 3 article in The Times, Stanley Reed noted that the sharp drop in oil prices “was seen as a response to Saudi Arabia’s signaling ... to the markets that it was more interested in maintaining market share than in defending prices. Saudi Aramco, the national oil company, stunned markets by announcing that it was cutting prices by about $1 a barrel to Asia, the crucial growth market for the Persian Gulf producers, as well as by 40 cents a barrel to the United States.” The Times also noted that with America now producing so much more oil and gas, “net oil imports to the United States have fallen since 2007 by 8.7 million barrels a day, ‘roughly equivalent to total Saudi and Nigerian exports,’ according to a recent Citigroup report.”

This resource abundance comes at a time when we’ve also hit a “gusher” of energy technology in Silicon Valley, which is supplying us with unprecedented gains in energy efficiency and productivity, savings that may become as impactful as shale in determining our energy security and global strength. Google, through Nest, and Apple through coding in the iPhone software, are making it easier for average Americans to manage and save energy at home or work.

Bottom line: The trend line for petro-dictators is not so good. America today has a growing advantage in what the former Assistant Energy Secretary Andy Karsner calls “the three big C’s: code, crude and capital.” If only we could do tax reform, and replace payroll and corporate taxes with a carbon tax, we’d have a formula for resiliency and success far better than any of our adversaries.

A version of this op-ed appears in print on October 15, 2014, on page A35 of the New York edition with the headline: A Pump War?. Order Reprints|Today's Paper|Subscribe
 
Like I said upthread: an active engaged and intelligent Administration would be able to react to this and reap the benefits. Discomforting Iran, Russia and even Venezuela are all positive outcomes for the *West*. However, it seems the Saudis are not just after collapsing the oil prices to the detriment of Iran and Russia; America and Canada (the oil sands) are also in their sights:

http://www.the-american-interest.com/blog/2014/10/16/saudi-plays-chicken-with-u-s-shale/

Saudi Plays Chicken with U.S. Shale

The benchmark for American crude, called the West Texas Intermediate (WTI), fell below $80 per barrel for the first time in more than two years in trading today before staging a small rally. Similarly, Brent crude, Europe’s benchmark, traded below $83 per barrel, a four-year low, before seeing a slight rebound on what Reuters explains to be “technical buying ahead of options expiry for U.S. crude oil and contract expiry for Brent crude.”

But temporary rebound notwithstanding, there’s no denying that this is a bear market for crude oil. Brent prices have dropped by more than 28 percent since June, while WTI has tumbled nearly 25 percent in that same time period. Weak demand has collided with an oversupplied market, partly due to Libyan supplies coming back online after protracted disruptions, and, of course, in part due to booming supplies out of the suddenly shale-rich America.

The question on everyone’s minds is, where is OPEC? The cartel of petrostates has colluded in the past to cut production to keep prices artificially high, yet the organization’s largest producer and, historically, the one most likely to take the lead on these cuts—Saudi Arabia—has cut prices, not production, in recent weeks.

The Saudis have actually offered discounts to customers, especially in Asia, in a bid to gain market share in the midst of this price rout. Kuwait wasted little time in following suit, and, somewhat surprisingly, Iran even joined in, saying it could live with lower oil prices. With the exception of Iran, the countries seemingly most content with declining prices are also the ones with relatively low breakeven prices—that is, the price at which these petrostates need to sell their oil in order to balance their budgets.

Venezuela, a country teetering on the brink of default, needs to sell its black gold at $121 per barrel just to stay in the black. Caracas has been outspoken about its calls for an emergency meeting of the cartel, too impatient to wait for OPEC’s already scheduled meeting in late November. Those calls have fallen on deaf ears, and, as the WSJ reports, many analysts think OPEC won’t choose to cut production when it meets next month:

Continued opposition by Saudi Arabia, Kuwait and the U.A.E., however, now makes any cut highly unlikely. Gulf nations worry any reduction in the limit on OPEC production would lead to them losing share in global oil markets, the people familiar with the matter said, even if that means oil prices keep dropping.

“Saudi Arabia and the rest of the Gulf countries have no intention whatsoever to accept the idea of a cut at the November meeting,” one Gulf OPEC official said. “If we are going to end up with lower market share and prices will fall anyway, let’s stick to market share.”

There has been some speculation that the Saudis may be looking to abdicate their role as OPEC’s (and therefore the world’s) de facto swing supplier, banking on the fact that U.S. shale producers, the new kids on the block, will soon have to cut production because fracking will cease to be profitable. America’s unconventional oil drilling tends to be more expensive; the IEA recently announced that at $80 per barrel, 96 percent of shale drilling would still be profitable, but if WTI prices were to dip much lower, the shale boom would hit a considerable hurdle.

We’re not there yet, and in fact the price of oil today exists in a kind of sweet spot: high enough to continue to incentivize U.S. fracking, but low enough to benefit American consumers (average gas prices in the U.S. are at their lowest level since 2011) and stymie some of America’s geopolitical opponents. Russia, for example, needs oil to trade above $100 per barrel to balance its budget.

The Saudi strategy isn’t unlike a game of chicken. The Saudi breakeven price hovers around $93 per barrel, and while it can afford to operate in the red to gain market share for now, it may not be able to do so in the long term. Banking on American shale production cuts may be a bigger gamble than the Saudis expect, too: it will take some time for the market to shift and fracking to draw down, even if prices continue to plunge.

And U.S. shale has a final trump card: innovation. Though fracked wells have steep decline rates, drillers continue to optimize rigs and maximize output while minimizing costs. Bloomberg reports that shale firms have driven costs down by as much as $30 per barrel since 2012, and one analyst surmised that “[t]he profit margin on most commercial unconventional oil plays will support prices as low as $50, many below that even.”

It’s difficult to predict what happens next, but for now, the United States seems to be sitting pretty while many of the world’s petrostates—including a number of America’s geopolitical adversaries—are feeling the pinch. We’ll be watching
 
The interesting thing is that this is happening in spite of the USG, not because of this. While the current Administration is indirectly reaping some benefits, they are not acting in a coordinated manner to capitalize on their good fortune. This can be corrected by afuture Administration. For Canada, this *helps* in the larger alliance picture because it hurts various actors like Russia, Iran, Saudi Arabia and so on, even though it *hurts* Canada's oil sector in the short and medium term:

http://www.the-american-interest.com/blog/2014/10/22/fracking-innovation-defying-oil-price-dangers/

Fracking Innovation Defying Oil Price Dangers

The price of developing shale wells is falling fast, which could mean that lower oil prices will have less effect on production than many think, including the Saudis. Demand for crude is weak due to sluggish economic growth in Europe and Asia, and supply is plentiful, thanks to North America’s boom and a resumption of Libyan supplies. That has sent oil prices plunging in recent weeks, and some are worried about the potential effect on the U.S. shale boom, which has needed a relatively high price of oil to incentivize producers to keep fracking. But as the FT reports, even before this bearish market the American shale drilling industry has been busy looking for ways to increase production while reducing costs:


[C]osts have already fallen sharply, and could fall further. The median North American shale development needs a US crude price of $57 a barrel to break even today, compared with $70 a barrel in the summer of last year, according to IHS, the research company. [...]

Accenture believes the average cost of a US shale well could be cut by up to 40 per cent by better management of factors such as planning, logistics, and relationships with suppliers. [...]

The effort companies are putting into each well is rising. ConocoPhillips and others have been using much more proppant – the sand or similar material used in fracking to hold open cracks in the rock so the oil can flow out – to increase production. Companies are also fracking wells in more stages: up from an average of 18 sections per horizontal well in 2012 to an expected 23 per well next year, according to Pac West, another consultancy.

Here’s the important point in all of this: The rapid fall in the price of developing new wells suggests that much more tight oil may be recoverable than people think. The fall in the breakeven prices for fracking means that the technology is capable of enormous improvements. Moreover, new breakthroughs could make previously inaccessible deposits of oil and gas both technically recoverable and economically profitable.

It also means that U.S. companies are extending their technological lead in the field. As they discover faster, cheaper ways to extract oil, they’ll be developing techniques and tools that the rest of the world will need, badly.

There are limits to all forms of natural bounty, but the shale revolution so far has consistently beaten expectations.
 
Given the nature of our American neighbours this is very likely to do much more to shape public opinion than, say, this.

Now I know that Geraldo Rivera is a turd circling the toilet bowl of (subhuman) life, but he is popular; many, many people, incredibly stupid people, to be sure, but voters, all the same, believe him; they think the he thinks ... he doesn't, but he's crafty and a showman in the tradition of carnival snake oil salesman, and he's popular and rich.

Edit to add:

It's been brought to my attention that calling Geraldo Rivera a subhuman turd is a breach of our Site Guidelines; it's offensive, vulgar, abusive and, potentially defamatory. Even more, it is hateful towards a minority.

Therefore, I apologize to Mike Bobbitt and to all turds who are offended because I compared them to Geraldo Rivera; I'm truly sorry.

I wonder, will the POS be equally offended if I call him that, instead?
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Further edit to add:

And just in case you think it's only Geraldo Rivera, check this out. The author claims he was writing satire ... maybe, but:

    1. If that was his intent, he failed to make it clear; and

    2. A significant minority, maybe a majority of American readers will take it seriously.
 
E.R. Campbell said:
Now I know that Geraldo Rivera is a turd circling the toilet bowl of (subhuman) life, but he is popular; many, many people, incredibly stupid people, to be sure, but voters, all the same, believe him; they think the he thinks ... he doesn't, but he's crafty and a showman in the tradition of carnival snake oil salesman, and he's popular and rich.

Cripes, he's still around!!  And while the people in the comments section all thought Geraldo is a nut case I think you right. I listened to the radio last week (either CBC or NPR) a week ago and they had a report about some senator/congressman saying that a Canada was a threat because of the terrorist residing here. And he specifically mentioned Quebec as being the home of many radical Muslims.

Now we have two attacks in three days and both attackers were from Quebec. So, expect longer checks at the border.

 
 
E.R. Campbell said:
Further edit to add:

And just in case you think it's only Geraldo Rivera, check this out. The author claims he was writing satire ... maybe, but:

    1. If that was his intent, he failed to make it clear; and

    2. A significant minority, maybe a majority of American readers will take it seriously.

I read the Politico article when it was first published on their website, and considered posting a link here, but didn't because server issues  kept popping up, and I forgot about it.

I didn't think that is was satire so much as an attempt to debunk the rhetoric from the GOP right wing of late to try and instill fear over the "porous southern border". You may not have a full feel for just how bad the BS is in the run up to the midterm elections in two week, but the disinformation being put out by the GOP campaigns would give the old Soviet Union's Dezinformatsia machine a run for it's rubles.

The author makes very pertinent points about the problems with internal issues that no border fix will cure, and essentially they want to throw money at a problem that isn't there.

I agree that as a Canadian it does cast us in a bad light, but not as much as when you hear government officials continually drone on about how the 9/11 hijackers entered through Canada. I was near apoplectic when DHS Secretary Janet Napolitano made that statement in a congressional hearing.

The author could have done a better job at making his point, but to classify him at the same level as the moustache that talks like an idiot is a little harsh (holding fingertips just far enough apart to see daylight.

PS: I think a significant part of the US population would be hard pressed to tell you what country is to the north.

PPS: I can't wait until Nov. 5th so we can move on to the 2016 campaign BS.  ::)
 
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