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anonymous

Can Eric Cantor Redeem the Republican Party and Himself? - 0 views

  • On the second day, after a 7 A.M. choice of Catholic Mass or Bible study, the political analyst Charlie Cook gave a sober presentation about current demographic trends, demonstrating that the Party was doomed unless it started winning over Asian-Americans, Hispanics, and younger voters. He also noted that forty per cent of the electorate is moderate—and Republicans lost that constituency by fifteen points in 2012. Thanks to congressional redistricting, Republicans were able to hold on to the House of Representatives, and Cook said that the Party could probably keep it for the foreseeable future, but he warned that the prospects of winning back the Senate, and the White House, would require dramatic change. There are only twenty Republican women in the House, and Kellyanne Conway, a G.O.P. pollster, gave the overwhelmingly white male audience some advice: stop talking about rape.
  • Cantor is the House Majority Leader, which means that he is responsible for the mundane business of managing the schedule, the House floor, and committees, where legislation is generally written. He has used his position to transform himself into the Party’s chief political strategist.
  • “What Eric is really focussed on is that we need to do a better job of broadening our appeal and showing that we have real ideas and solutions that make people’s lives better,” Ryan said. “Eric is the guy who studies the big vision and is doing the step-by-step, daily management of the process to get us there. That is a huge job.”
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  • Cantor was one of the most influential political forces in Obama’s first term. In June of 2011, the President and the Speaker began working toward a Grand Bargain of major tax increases and spending cuts to address the government’s long-term budget deficits. Until late June, Boehner had managed to keep these talks secret from Cantor. On July 21st, Boehner paused in his discussions with Obama to talk to Cantor and outline the proposed deal. As Obama waited by the phone for a response from the Speaker, Cantor struck. Cantor told me that it was a “fair assessment” that he talked Boehner out of accepting Obama’s deal. He said he told Boehner that it would be better, instead, to take the issues of taxes and spending to the voters and “have it out” with the Democrats in the election.
  • Why give Obama an enormous political victory, and potentially help him win reëlection, when they might be able to negotiate a more favorable deal with a new Republican President? Boehner told Obama there was no deal. Instead of a Grand Bargain, Cantor and the House Republicans made a grand bet.
  • The bet failed spectacularly. Just as Cantor had urged, Obama and Romney spent much of the campaign debating tax and spending policies that the House Republicans had foisted on the Romney-Ryan ticket. What’s more, by scuttling the 2011 Grand Bargain negotiations, Cantor, more than any other politician, helped create the series of fiscal crises that have gripped Washington since Election Day. The failure of the Grand Bargain led to a byzantine deal: if the two parties could not agree on a new deficit plan, then a combination of tax increases and spending cuts—cuts known, in budget jargon, as a “sequester”—would automatically kick in on New Year’s Day.
  • Since the 2012 elections, the Republicans have been divided between those who believe their policies are the problem and those who believe they just need better marketing—between those who believe they need to make better pizza and those who think they just need a more attractive box. Cantor, who is known among his colleagues as someone with strategic intelligence and a knack for political positioning, argues that it’s the box.
  • As he gamed out G.O.P. strategy for the budgetary showdowns with Obama in January and February—including this week’s clash over the sequester—Cantor was happy to make himself available for several long interviews. He persistently struck a diplomatic note and mentioned again and again how much he looked forward to working with Obama, a position that he said he’s been articulating for a long time.
  • There are several ways to think of the divide in the Republican conference.
  • One is regional. The House has two hundred and thirty-two Republican members; nearly half of them—a hundred and ten—are from the South.
  • The rest are scattered across the Midwest (fifty-eight), the mid-Atlantic (twenty-five), the mountain West (eighteen), and the Pacific (twenty-one). There are no House Republicans from New England.
  • Tom Price, an orthopedic surgeon from Georgia, who holds Newt Gingrich’s old congressional seat and is seen as a leader of the most conservative House Republicans, said that, during a recent debate over taxes, “we talked past each other oftentimes as much as Republicans and Democrats talk past each other.” He explained how surprised he was when one of his colleagues from a Northern state told him that he favored a tax increase on millionaires. “It hit me that what he was hearing when he’s going home to a Republican district in a blue state is completely different than what I’m hearing when I go home to a Republican district in a red state,” he said. “My folks are livid about this stuff. His folks clearly weren’t. And so we weren’t even starting from the same premise.”
  • The other divide in the House is generational.
  • If Democrats vote as a bloc, which they often do, it takes only sixteen dissenting Republicans for the leadership to lose a vote. There is a rump group of some forty or fifty restless Republicans. At its core are two dozen younger members, most of whom have been elected since 2010 and have what generously might be called a dismissive attitude toward their leaders, whom they see as holdovers from the big-spending era of George W. Bush.
  • Tom Cole, of Oklahoma, who is sixty-three and has served for a decade in the House, recently emerged as the leader of a large faction of House Republicans who believe that the Tea Party-inspired congressmen are dooming the Party.
  • Cole is no fan of Obama. “The President is so self-righteous and so smug,” he told me. But Cole is one of the few House Republicans who have worked closely with the White House. On one of his walls, which is decorated with Native American artifacts, were framed copies of two laws that Obama signed regarding tribal issues. “He’s the best President in modern American history on Native American issues,” Cole said.
  •  
    "Two months earlier, Republicans had lost the Presidential election and eight seats in the House. They were immediately plunged into a messy budget fight with a newly emboldened President, which ended with an income-tax increase, the first in more than twenty years. A poll in January deemed Congress less popular than cockroaches, head lice, and colonoscopies (although it did beat out the Kardashians, North Korea, and the Ebola virus). It was time to regroup."
anonymous

Anarchy and Hegemony - 0 views

  • Everyone loves equality: equality of races, of ethnic groups, of sexual orientations, and so on. The problem is, however, that in geopolitics equality usually does not work very well. For centuries Europe had a rough equality between major states that is often referred to as the balance-of-power system. And that led to frequent wars
  • East Asia, by contrast, from the 14th to the early 19th centuries, had its relations ordered by a tribute system in which China was roughly dominant. The result, according to political scientist David C. Kang of the University of Southern California, was a generally more peaceful climate in Asia than in Europe.
  • The fact is that domination of one sort or another, tyrannical or not, has a better chance of preventing the outbreak of war than a system in which no one is really in charge
    • anonymous
       
      That is quite the statement. On the surface, it *feels* true. Let's see the follow-through.
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  • Columbia University's Kenneth Waltz, arguably America's pre-eminent realist, says that the opposite of "anarchy" is not stability, but "hierarchy."
  • Hierarchy eviscerates equality; hierarchy implies that some are frankly "more equal" than others, and it is this formal inequality -- where someone, or some state or group, has more authority and power than others -- that prevents chaos. For it is inequality itself that often creates the conditions for peace.
  • Government is the most common form of hierarchy.
  • It is a government that monopolizes the use of violence in a given geographical space, thereby preventing anarchy. To quote Thomas Hobbes, the 17th century English philosopher, only where it is possible to punish the wicked can right and wrong have any practical meaning, and that requires "some coercive power."
  • The best sort of inequality is hegemony.
  • Whereas primacy, as Kang explains, is about preponderance purely through military or economic power, hegemony "involves legitimation and consensus."
  • That is to say, hegemony is some form of agreed-upon inequality, where the dominant power is expected by others to lead.
  • When a hegemon does not lead, it is acting irresponsibly.
  • hegemony has a bad reputation in media discourse.
  • But that is only because journalists are confused about the terminology, even as they sanctimoniously judge previous historical eras by the strict standards of their own. In fact, for most of human history, periods of relative peace have been the product of hegemony of one sort or another. And for many periods, the reigning hegemonic or imperial power was the most liberal, according to the standards of the age.
  • Rome, Venice and Britain were usually more liberal than the forces arranged against them.
    • anonymous
       
      I call BULLSHIT on the Rome thing. There is some strong evidence that they were quite lacking in human rights relative their northern Gaulish neighbors (which they smashed to claim their gold mines).
  • There are exceptions, of course, like Hapsburg Spain, with its combination of inquisition and conquest. But the point is that hegemony does not require tyrannical or absolutist rule.
    • anonymous
       
      I'll buy it. I remember how John Green noted that the Greek city states won a war against the Persians - who had abolished slavery and had greater rights of expression for the multiplicity of ethnicities within their borders.
  • there are few things messier in geopolitics than the demise of an empire.
  • The collapse of the Hapsburgs, of the Ottoman Turks, of the Soviet Empire and the British Empire in Asia and Africa led to chronic wars and upheavals. Some uncomprehending commentators remind us that all empires end badly. Of course they do, but that is only after they have provided decades and centuries of relative peace.
  • Obviously, not all empires are morally equivalent.
  • Therefore, I am saying only in a general sense is order preferable to disorder.
  • Though captivating subtleties abound: For example, Napoleon betrayed the ideals of the French Revolution by creating an empire, but he also granted rights to Jews and Protestants and created a system of merit over one of just birth and privilege.
  • In any case, such order must come from hierarchal domination.
  • Indeed, from the end of World War II until very recently, the United States has performed the role of a hegemon in world politics. America may be democratic at home, but abroad it has been hegemonic.
  • That is, by some rough measure of international consent, it is America that has the responsibility to lead. America formed NATO in Europe, even as its Navy and Air Force exercise preponderant power in the Pacific Basin. And whenever there is a humanitarian catastrophe somewhere in the developing world, it is the United States that has been expected to organize the response.
  • Periodically, America has failed. But in general, it would be a different, much more anarchic world without American hegemony.
  • But that hegemony, in some aspects, seems to be on the wane. That is what makes this juncture in history unique.
  • When it comes to the Greater Middle East, Americans seem to want protection on the cheap, and Obama is giving them that. 
  • We will kill a terrorist with a drone, but outside of limited numbers of special operations forces there will be no boots on the ground for Libya, Syria or any other place.
  • Richard Nixon, Ronald Reagan and George H.W. Bush were noted for American leadership and an effective, sometimes ruthless foreign policy.
  • Since the Cold War ended and Bill Clinton became president, American leadership has often seemed to be either unserious, inexpertly and crudely applied or relatively absent.
    • anonymous
       
      Yeah, that pussy Clinton, who couldn't get UN support for the Balkans and then proceeded to move through Nato. Sure, it was airstrikes and logistics, but it was no equivocal. Whether you like the action or not. ::raspberry:: [citation needed]
  • Nevertheless, in the case of the Middle East, do not conflate chaos with democracy. Democracy itself implies an unequal, hierarchal order, albeit one determined by voters. What we have in the Middle East cannot be democracy because almost nowhere is there a new and sufficiently formalized hierarchy. No, what we have in many places in the Middle East is the weakening of central authority with no new hierarchy to adequately replace it.
  • Unless some force can, against considerable odds, reinstitute hierarchy -- be it an American hegemon acting globally, or an international organization acting regionally or, say, an Egyptian military acting internally -- we will have more fluidity, more equality and therefore more anarchy to look forward to.
  •  
    "Everyone loves equality: equality of races, of ethnic groups, of sexual orientations, and so on. The problem is, however, that in geopolitics equality usually does not work very well. For centuries Europe had a rough equality between major states that is often referred to as the balance-of-power system. And that led to frequent wars. "
anonymous

North Korea Threatens to Attack the United States Again - 0 views

  • On March 29, North Korean leader Kim Jong Un placed the country's Strategic Rocket Forces on standby to strike the U.S. mainland and U.S. military bases in Hawaii, Guam and South Korea.
  • South Korea meanwhile is reportedly tracking increased activity at North Korean missile sites. Much of North Korea's behavior can be considered rhetorical, but it is nonetheless unclear how far Pyongyang is willing to go if it still cannot force negotiations through belligerence.
  • North Korean news agency Rodong Sinmun published several images of Kim at an emergency military operations meeting at 12:30 a.m. March 29.
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  • The images were published to show North Korean citizens the resolve of its leaders and to incite speculation abroad. However, including Texas on the maps suggests they were part of outdated attack plans; it is possible they were made during the administration of former U.S. President George W. Bush, when an attack on Texas held symbolic meaning.
    • anonymous
       
      My guess is this was intentional. The news was created for North Korean consumption, wherein the average citizen doesn't even understand the significance (other than a lot of strategic depth in the missle-flight). Possibly, it's meant to confuse *external* audiences since including Texas clearly exhibits that it's either outdated or meant to keep observers wondering about true intent.
  • North Korea has been stepping up its warnings of war, and the United States, acting within the framework of military exercises with South Korea, responded by signaling its commitment to South Korea's defense.
  • These signals included flights of B-52s on March 25 and flights of B-2As on March 28.
  • South Korean media has reported signs of activity around North Korean missile bases. If these reports are true, they would be consistent with the order to step up the alert level and with preparations for a missile test. It would also be consistent with North Korea's exploitation of foreign satellite and other intelligence observation capabilities to shape the psychological battlefield.
  • The North Korean announcement, coupled with the pictures of the war room, are intended to raise the level of concern to a level that forces the United States and South Korea to enter dialogue to de-escalate.
  • The North Korean nuclear test, the rejection of the Armistice Agreement, artillery and amphibious landing exercises and raising the missile alert level are all part of the same campaign.
  • However, there are few signs of real war preparation in North Korea, and the border at Kaesong remains open. The United States has responded to each North Korean provocation with a stronger signal of its own. So far, this is still a game of rhetoric. But Pyongyang's threats-for-rewards policy clearly is becoming less and less effective, and it remains to be seen how Pyongyang will react if it cannot maintain that policy.
    • anonymous
       
      The irony is that if the U.S. continues to behave this way, war may be *more* likely since NK is already heavily isolated and has been on the defensive for generations. "It sure would be a shame if this region became a warzone...." it seems to say.
  •  
    "North Korea may conduct additional missile tests this weekend to heighten tensions on the Korean Peninsula and to force negotiations for de-escalation."
anonymous

The Obama Realignment - NYTimes.com - 1 views

  • But the lesson of the election is that the Obama coalition was truly vulnerable only to a Republican Party that took Obama seriously as an opponent – that understood how his majority had been built, why voters had joined it and why the conservative majority of the Reagan and Bush eras had unraveled.
  • In part, that failure can be blamed on their standard-bearer, Mitt Romney, who mostly ran as a kind of vanilla Republican instead of showing the imagination necessary to reinvent his party for a new era.
  • A weak nominee in many ways, he was ultimately defeated less by his own limitations as a leader, and more by the fact that his party didn’t particularly want to be reinvented, preferring to believe that the rhetoric and positioning of 1980 and 1984 could win again in the America of 2012.
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  • But even less starry-eyed conservatives — like, well, myself — were willing to embrace models of the electorate that overstated the Republican base of support and downplayed the Democrats’ mounting demographic advantage.
  • In this sense, just as Reagan Republicanism dominated the 1980s even though the Democrats controlled the House, our own era now clearly belongs to the Obama Democrats even though John Boehner is still speaker of the House.
  • That era will not last forever; it may not even last more than another four years. The current Democratic majority has its share of internal contradictions, and as it expands demographically it will become vulnerable to attack on many fronts. Parties are more adaptable than they seem in their moments of defeat, and there will come a day when a Republican presidential candidate will succeed where Mitt Romney just failed. But getting there requires that conservatives face reality: The age of Reagan is officially over, and the Obama majority is the only majority we have.
  •  
    "2008 was also a unique political moment, when George W. Bush's immense unpopularity was compounded by a financial collapse, and when the possibility of electing the country's first black president fired the imagination of the nation (and the nation's press corps). So it was still possible to regard the Obama majority of '08 as more flukish than transformative - or at the very least, to see it as a fragile thing, easily shattered by poor choices and adverse developments."
anonymous

How Conservative Media Lost to the MSM and Failed the Rank and File - Conor Friedersdor... - 0 views

  • Barack Obama just trounced a Republican opponent for the second time. But unlike four years ago, when most conservatives saw it coming, Tuesday's result was, for them, an unpleasant surprise. So many on the right had predicted a Mitt Romney victory, or even a blowout -- Dick Morris, George Will, and Michael Barone all predicted the GOP would break 300 electoral votes.
  • Those audiences were misinformed.
  • Outside the conservative media, the narrative was completely different. Its driving force was Nate Silver, whose performance forecasting Election '08 gave him credibility as he daily explained why his model showed that President Obama enjoyed a very good chance of being reelected.
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  • The conclusions of experts are not sacrosanct. But Silver's expertise was always a better bet than relying on ideological hacks like Morris or the anecdotal impressions of Noonan. 
  • Sure, Silver could've wound up wrong. But people who rejected the possibility of his being right? They were operating at a self-imposed information disadvantage.
  • Conservatives should be familiar with its contours. For years, they've been arguing that liberal control of media and academia confers one advantage: Folks on the right can't help but be familiar with the thinking of liberals, whereas leftists can operate entirely within a liberal cocoon. This analysis was offered to explain why liberal ideas were growing weaker and would be defeated.
  • It is easy to close oneself off inside a conservative echo chamber. And right-leaning outlets like Fox News and Rush Limbaugh's show are far more intellectually closed than CNN or public radio. If you're a rank-and-file conservative, you're probably ready to acknowledge that ideologically friendly media didn't accurately inform you about Election 2012. Some pundits engaged in wishful thing; others feigned confidence in hopes that it would be a self-fulfilling prophecy; still others decided it was smart to keep telling right-leaning audiences what they wanted to hear.
  • Conservatives were at a disadvantage because Romney supporters like Jennifer Rubin and Hugh Hewitt saw it as their duty to spin constantly for their favored candidate rather than being frank about his strengths and weaknesses. What conservative Washington Post readers got, when they traded in Dave Weigel for Rubin, was a lot more hackery and a lot less informed about the presidential election.  
  • Conservatives were at an information disadvantage because so many right-leaning outlets wasted time on stories the rest of America dismissed as nonsense. WorldNetDaily brought you birtherism. Forbes brought you Kenyan anti-colonialism. National Review obsessed about an imaginary rejection of American exceptionalism, misrepresenting an Obama quote in the process, and Andy McCarthy was interviewed widely about his theory that Obama, aka the Drone Warrior in Chief, allied himself with our Islamist enemies in a "Grand Jihad" against America. Seriously? 
  • Conservatives were at a disadvantage because their information elites pandered in the most cynical, self-defeating ways, treating would-be candidates like Sarah Palin and Herman Cain as if they were plausible presidents rather than national jokes who'd lose worse than George McGovern.How many months were wasted on them?
  • How many hours of Glenn Beck conspiracy theories did Fox News broadcast to its viewers? How many hours of transparently mindless Sean Hannity content is still broadcast daily? Why don't Americans trust Republicans on foreign policy as they once did? In part because conservatism hasn't grappled with the foreign-policy failures of George W. Bush. A conspiracy of silence surrounds the subject. Romney could neither run on the man's record nor repudiate it. The most damaging Romney gaffe of the campaign, where he talked about how the 47 percent of Americans who pay no income taxes are a lost cause for Republicans? Either he was unaware that many of those people are Republican voters, or was pandering to GOP donors who are misinformed. Either way, bad information within the conservative movement was to blame.
  • In conservative fantasy-land, Richard Nixon was a champion of ideological conservatism, tax cuts are the only way to raise revenue, adding neoconservatives to a foreign-policy team reassures American voters, Benghazi was a winning campaign issue, Clint Eastwood's convention speech was a brilliant triumph, and Obama's America is a place where black kids can beat up white kids with impunity. Most conservative pundits know better than this nonsense -- not that they speak up against it. They see criticizing their own side as a sign of disloyalty. I see a coalition that has lost all perspective, partly because there's no cost to broadcasting or publishing inane bullshit. In fact, it's often very profitable. A lot of cynical people have gotten rich broadcasting and publishing red meat for movement conservative consumption.
  • On the biggest political story of the year, the conservative media just got its ass handed to it by the mainstream media. And movement conservatives, who believe the MSM is more biased and less rigorous than their alternatives, have no way to explain how their trusted outlets got it wrong, while the New York Times got it right. Hint: The Times hired the most rigorous forecaster it could find.  
  •  
    "Before rank-and-file conservatives ask, "What went wrong?", they should ask themselves a question every bit as important: "Why were we the last to realize that things were going wrong for us?""
anonymous

The Inequality That Matters - 1 views

  • there’s more confusion about this issue than just about any other in contemporary American political discourse.
  • The reality is that most of the worries about income inequality are bogus, but some are probably better grounded and even more serious than even many of their heralds realize. If our economic churn is bound to throw off political sparks, whether alarums about plutocracy or something else, we owe it to ourselves to seek out an accurate picture of what is really going on.
  • Let’s start with the subset of worries about inequality that are significantly overblown.
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  • Most analyses of income inequality neglect two major points.
  • First, the inequality of personal well-being is sharply down over the past hundred years and perhaps over the past twenty years as well.
  • by broad historical standards, what I share with Bill Gates is far more significant than what I don’t share with him.
  • Compare these circumstances to those of 1911, a century ago. Even in the wealthier countries, the average person had little formal education, worked six days a week or more, often at hard physical labor, never took vacations, and could not access most of the world’s culture.
  • when average people read about or see income inequality, they don’t feel the moral outrage that radiates from the more passionate egalitarian quarters of society. Instead, they think their lives are pretty good and that they either earned through hard work or lucked into a healthy share of the American dream.
  • In narrowly self-interested terms, that view may be irrational, but most Americans are unwilling to frame national issues in terms of rich versus poor.
  • There’s a great deal of hostility toward various government bailouts, but the idea of “undeserving” recipients is the key factor in those feelings. Resentment against Wall Street gamesters hasn’t spilled over much into resentment against the wealthy more generally.
  • their constituents bear no animus toward rich people, only toward undeservedly rich people.
    • anonymous
       
      Which is how the policy can be reframed to the benefit of those that understand this more cleanly.
  • in the United States, most economic resentment is not directed toward billionaires or high-roller financiers—not even corrupt ones. It’s directed at the guy down the hall who got a bigger raise.
    • anonymous
       
      Provincialism!
  • The high status of the wealthy in America, or for that matter the high status of celebrities, seems to bother our intellectual class most. That class composes a very small group, however
  • All that said, income inequality does matter—for both politics and the economy.
  • To see how, we must distinguish between inequality itself and what causes it. But first let’s review the trends in more detail.
  • Income inequality has been rising in the United States, especially at the very top.
  • The data show a big difference between two quite separate issues
  • income growth at the very top
  • greater inequality throughout the distribution
  • When it comes to the first trend, the share of pre-tax income earned by the richest 1 percent of earners has increased from about 8 percent in 1974 to more than 18 percent in 2007. Furthermore, the richest 0.01 percent (the 15,000 or so richest families) had a share of less than 1 percent in 1974 but more than 6 percent of national income in 2007. As noted, those figures are from pre-tax income, so don’t look to the George W. Bush tax cuts to explain the pattern. Furthermore, these gains have been sustained and have evolved over many years, rather than coming in one or two small bursts between 1974 and today.1
  • Caution is in order, but the overall trend seems robust. Similar broad patterns are indicated by different sources, such as studies of executive compensation. Anecdotal observation suggests extreme and unprecedented returns earned by investment bankers, fired CEOs, J.K. Rowling and Tiger Woods.
  • At the same time, wage growth for the median earner has slowed since 1973.
  • But that slower wage growth has afflicted large numbers of Americans, and it is conceptually distinct from the higher relative share of top income earners. For instance, if you take the 1979–2005 period, the average incomes of the bottom fifth of households increased only 6 percent while the incomes of the middle quintile rose by 21 percent. That’s a widening of the spread of incomes, but it’s not so drastic compared to the explosive gains at the very top.
  • The broader change in income distribution, the one occurring beneath the very top earners, can be deconstructed in a manner that makes nearly all of it look harmless. For instance, there is usually greater inequality of income among both older people and the more highly educated, if only because there is more time and more room for fortunes to vary.
  • Since America is becoming both older and more highly educated, our measured income inequality will increase pretty much by demographic fiat.
  • Economist Thomas Lemieux at the University of British Columbia estimates that these demographic effects explain three-quarters of the observed rise in income inequality for men, and even more for women.2
  • Attacking the problem from a different angle, other economists are challenging whether there is much growth in inequality at all below the super-rich. For instance, real incomes are measured using a common price index, yet poorer people are more likely to shop at discount outlets like Wal-Mart, which have seen big price drops over the past twenty years.3 Once we take this behavior into account, it is unclear whether the real income gaps between the poor and middle class have been widening much at all.
  • And so we come again to the gains of the top earners, clearly the big story told by the data.
  • It’s worth noting that over this same period of time, inequality of work hours increased too. The top earners worked a lot more and most other Americans worked somewhat less. That’s another reason why high earners don’t occasion more resentment: Many people understand how hard they have to work to get there.
  • A threshold earner is someone who seeks to earn a certain amount of money and no more.
  • If wages go up, that person will respond by seeking less work or by working less hard or less often. That person simply wants to “get by” in terms of absolute earning power in order to experience other gains in the form of leisure—whether spending time with friends and family, walking in the woods and so on. Luck aside, that person’s income will never rise much above the threshold.
  • It’s not obvious what causes the percentage of threshold earners to rise or fall, but it seems reasonable to suppose that the more single-occupancy households there are, the more threshold earners there will be, since a major incentive for earning money is to use it to take care of other people with whom one lives.
  • For a variety of reasons, single-occupancy households in the United States are at an all-time high.
  • The funny thing is this: For years, many cultural critics in and of the United States have been telling us that Americans should behave more like threshold earners. We should be less harried, more interested in nurturing friendships, and more interested in the non-commercial sphere of life. That may well be good advice.
  • Many studies suggest that above a certain level more money brings only marginal increments of happiness.
  • What isn’t so widely advertised is that those same critics have basically been telling us, without realizing it, that we should be acting in such a manner as to increase measured income inequality.
  • Why is the top 1 percent doing so well?
  • Their data do not comprise the entire U.S. population, but from partial financial records they find a very strong role for the financial sector in driving the trend toward income concentration at the top.
  • The number of Wall Street investors earning more than $100 million a year was nine times higher than the public company executives earning that amount.
  • The authors also relate that they shared their estimates with a former U.S. Secretary of the Treasury, one who also has a Wall Street background. He thought their estimates of earnings in the financial sector were, if anything, understated.
  • Many of the other high earners are also connected to finance.
  • After Wall Street, Kaplan and Rauh identify the legal sector as a contributor to the growing spread in earnings at the top.
  • Finance aside, there isn’t much of a story of market failure here, even if we don’t find the results aesthetically appealing.
  • When it comes to professional athletes and celebrities, there isn’t much of a mystery as to what has happened.
  • There is more purchasing power to spend on children’s books and, indeed, on culture and celebrities more generally. For high-earning celebrities, hardly anyone finds these earnings so morally objectionable as to suggest that they be politically actionable.
  • We may or may not wish to tax the wealthy, including wealthy celebrities, at higher rates, but there is no need to “cure” the structural causes of higher celebrity incomes.
  • If we are looking for objectionable problems in the top 1 percent of income earners, much of it boils down to finance and activities related to financial markets. And to be sure, the high incomes in finance should give us all pause.
  • some investors opt for a strategy of betting against big, unexpected moves in market prices.
  • Most of the time investors will do well by this strategy, since big, unexpected moves are outliers by definition. Traders will earn above-average returns in good times. In bad times they won’t suffer fully when catastrophic returns come in, as sooner or later is bound to happen, because the downside of these bets is partly socialized onto the Treasury, the Federal Reserve and, of course, the taxpayers and the unemployed.
  • To understand how this strategy works, consider an example from sports betting.
  • if you bet against unlikely events, most of the time you will look smart and have the money to validate the appearance. Periodically, however, you will look very bad
  • Does that kind of pattern sound familiar? It happens in finance, too. Betting against a big decline in home prices is analogous to betting against the Wizards. Every now and then such a bet will blow up in your face, though in most years that trading activity will generate above-average profits and big bonuses for the traders and CEOs. To this mix we can add the fact that many money managers are investing other people’s money.
  • If you plan to stay with an investment bank for ten years or less, most of the people playing this investing strategy will make out very well most of the time. Everyone’s time horizon is a bit limited and you will bring in some nice years of extra returns and reap nice bonuses.
  • And let’s say the whole thing does blow up in your face? What’s the worst that can happen? Your bosses fire you, but you will still have millions in the bank and that MBA from Harvard or Wharton.
  • For the people actually investing the money, there’s barely any downside risk other than having to quit the party early.
  • Moreover, smart shareholders will acquiesce to or even encourage these gambles.
  • They gain on the upside, while the downside, past the point of bankruptcy, is borne by the firm’s creditors.
  • Perhaps more important, government bailouts minimize the damage to creditors on the downside.
  • Neither the Treasury nor the Fed allowed creditors to take any losses from the collapse of the major banks during the financial crisis. The U.S. government guaranteed these loans, either explicitly or implicitly.
  • For better or worse, we’re handing out free options on recovery, and that encourages banks to take more risk in the first place.
  • In short, there is an unholy dynamic of short-term trading and investing, backed up by bailouts and risk reduction from the government and the Federal Reserve. This is not good.
  • But more immediate and more important, it means that banks take far too many risks and go way out on a limb, often in correlated fashion. When their bets turn sour, as they did in 2007–09, everyone else pays the price.
  • And it’s not just the taxpayer cost of the bailout that stings. The financial disruption ends up throwing a lot of people out of work down the economic food chain, often for long periods.
  • In essence, we’re allowing banks to earn their way back by arbitraging interest rate spreads against the U.S. government. This is rarely called a bailout and it doesn’t count as a normal budget item, but it is a bailout nonetheless. This type of implicit bailout brings high social costs by slowing down economic recovery (the interest rate spreads require tight monetary policy) and by redistributing income from the Treasury to the major banks.
  • The more one studies financial theory, the more one realizes how many different ways there are to construct a “going short on volatility” investment position.
  • In some cases, traders may not even know they are going short on volatility. They just do what they have seen others do. Their peers who try such strategies very often have Jaguars and homes in the Hamptons. What’s not to like?
  • The upshot of all this for our purposes is that the “going short on volatility” strategy increases income inequality.
  • In normal years the financial sector is flush with cash and high earnings. In implosion years a lot of the losses are borne by other sectors of society. In other words, financial crisis begets income inequality. Despite being conceptually distinct phenomena, the political economy of income inequality is, in part, the political economy of finance.
  • If you’re wondering, right before the Great Depression of the 1930s, bank profits and finance-related earnings were also especially high.8
  • There’s a second reason why the financial sector abets income inequality: the “moving first” issue.
  • The moving-first phenomenon sums to a “winner-take-all” market. Only some relatively small number of traders, sometimes just one trader, can be first. Those who are first will make far more than those who are fourth or fifth.
  • Since gains are concentrated among the early winners, and the closeness of the runner-ups doesn’t so much matter for income distribution, asset-market trading thus encourages the ongoing concentration of wealth. Many investors make lots of mistakes and lose their money, but each year brings a new bunch of projects that can turn the early investors and traders into very wealthy individuals.
  • These two features of the problem—“going short on volatility” and “getting there first”—are related.
  • Still, every now and then Goldman will go bust, or would go bust if not for government bailouts. But the odds are in any given year that it won’t because of the advantages it and other big banks have.
  • It’s as if the major banks have tapped a hole in the social till and they are drinking from it with a straw.
  • In any given year, this practice may seem tolerable—didn’t the bank earn the money fair and square by a series of fairly normal looking trades?
  • Yet over time this situation will corrode productivity, because what the banks do bears almost no resemblance to a process of getting capital into the hands of those who can make most efficient use of it.
  • And it leads to periodic financial explosions. That, in short, is the real problem of income inequality we face today. It’s what causes the inequality at the very top of the earning pyramid that has dangerous implications for the economy as a whole.
  • A key lesson to take from all of this is that simply railing against income inequality doesn’t get us very far.
  • We have to find a way to prevent or limit major banks from repeatedly going short on volatility at social expense. No one has figured out how to do that yet.
  • It remains to be seen whether the new financial regulation bill signed into law this past summer will help.
  • The bill does have positive features.
  • First, it forces banks to put up more of their own capital, and thus shareholders will have more skin in the game, inducing them to curtail their risky investments.
  • Second, it also limits the trading activities of banks, although to a currently undetermined extent (many key decisions were kicked into the hands of future regulators).
  • Third, the new “resolution authority” allows financial regulators to impose selective losses, for instance, to punish bondholders if they wish.
  • We’ll see if these reforms constrain excess risk-taking in the long run. There are reasons for skepticism.
  • Most of all, the required capital cushions simply aren’t that high, so a big enough bet against unexpected outcomes still will yield more financial upside than downside
  • What about controlling bank risk-taking directly with tight government oversight? That is not practical. There are more ways for banks to take risks than even knowledgeable regulators can possibly control
  • It’s also not clear how well regulators can identify risky assets.
  • Some of the worst excesses of the financial crisis were grounded in mortgage-backed assets—a very traditional function of banks—not exotic derivatives trading strategies.
  • Virtually any asset position can be used to bet long odds, one way or another. It is naive to think that underpaid, undertrained regulators can keep up with financial traders, especially when the latter stand to earn billions by circumventing the intent of regulations while remaining within the letter of the law.
  • For the time being, we need to accept the possibility that the financial sector has learned how to game the American (and UK-based) system of state capitalism.
  • It’s no longer obvious that the system is stable at a macro level, and extreme income inequality at the top has been one result of that imbalance. Income inequality is a symptom, however, rather than a cause of the real problem.
  • The root cause of income inequality, viewed in the most general terms, is extreme human ingenuity, albeit of a perverse kind. That is why it is so hard to control.
  • Another root cause of growing inequality is that the modern world, by so limiting our downside risk, makes extreme risk-taking all too comfortable and easy.
  • More risk-taking will mean more inequality, sooner or later, because winners always emerge from risk-taking.
  • Yet bankers who take bad risks (provided those risks are legal) simply do not end up with bad outcomes in any absolute sense.
  • We’re not going to bring back torture, trial by ordeal or debtors’ prisons, nor should we. Yet the threat of impoverishment and disgrace no longer looms the way it once did, so we no longer can constrain excess financial risk-taking. It’s too soft and cushy a world.
  • That’s an underappreciated way to think about our modern, wealthy economy: Smart people have greater reach than ever before, and nothing really can go so wrong for them.
  • How about a world with no bailouts? Why don’t we simply eliminate the safety net for clueless or unlucky risk-takers so that losses equal gains overall? That’s a good idea in principle, but it is hard to put into practice.
  • Once a financial crisis arrives, politicians will seek to limit the damage, and that means they will bail out major financial institutions.
  • Had we not passed TARP and related policies, the United States probably would have faced unemployment rates of 25 percent of higher, as in the Great Depression. The political consequences would not have been pretty.
  • Bank bailouts may sound quite interventionist, and indeed they are, but in relative terms they probably were the most libertarian policy we had on tap. It meant big one-time expenses, but, for the most part, it kept government out of the real economy (the General Motors bailout aside).
  • So what will happen next?
  • One worry is that banks are currently undercapitalized and will seek out or create a new bubble within the next few years, again pursuing the upside risk without so much equity to lose.
  • A second perspective is that banks are sufficiently chastened for the time being but that economic turmoil in Europe and China has not yet played itself out, so perhaps we still have seen only the early stages of what will prove to be an even bigger international financial crisis.
  • A third view is perhaps most likely. We probably don’t have any solution to the hazards created by our financial sector, not because plutocrats are preventing our political system from adopting appropriate remedies, but because we don’t know what those remedies are.
  • Yet neither is another crisis immediately upon us. The underlying dynamic favors excess risk-taking, but banks at the current moment fear the scrutiny of regulators and the public and so are playing it fairly safe.
  • They are sitting on money rather than lending it out. The biggest risk today is how few parties will take risks, and, in part, the caution of banks is driving our current protracted economic slowdown. According to this view, the long run will bring another financial crisis once moods pick up and external scrutiny weakens, but that day of reckoning is still some ways off.
  • Is the overall picture a shame? Yes. Is it distorting resource distribution and productivity in the meantime? Yes. Will it again bring our economy to its knees? Probably. Maybe that’s simply the price of modern society. Income inequality will likely continue to rise and we will search in vain for the appropriate political remedies for our underlying problems.
    • anonymous
       
      Painfully straightforward.
  •  
    "Does growing wealth and income inequality in the United States presage the downfall of the American republic? Will we evolve into a new Gilded Age plutocracy, irrevocably split between the competing interests of rich and poor? Or is growing inequality a mere bump in the road, a statistical blip along the path to greater wealth for virtually every American? Or is income inequality partially desirable, reflecting the greater productivity of society's stars?"
anonymous

America's Pacific Logic - 1 views

  • When the Berlin Wall fell in 1989, signaling communism's defeat in Europe, security experts talked about a shift in diplomatic and military energies to the Pacific. But Saddam Hussein's invasion of Kuwait in 1990 led to a decadelong preoccupation with the Middle East, with the U.S. Army leading a land war against Iraq in 1991 and the Navy and Air Force operating no-fly zones for years thereafter. Then came 9/11, and the Bush administration's initiation of wars in Afghanistan and Iraq as a response. Finally, the ending of both those conflicts is in sight, and the United States, rather than return to quasi-isolationism as it has done with deleterious effect after other ground wars in its history, is attempting to pivot its focus to the geographical heart of the global economy: the Indian and Pacific oceans.
  • The Indian Ocean is the world's energy interstate, across which passes crude oil and natural gas from the Arabian Peninsula and Iranian Plateau to the burgeoning, middle-class urban sprawls of East Asia.
  • Though we live in a jet and information age, 90 percent of all commercial goods that travel from one continent to another do so by container ship, and half of those goods in terms of global tonnage -- and one-third in terms of monetary value -- traverse the South China Sea
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  • And it is the U.S. Navy and Air Force, more than any other institutions, that have kept those sea lines of communication secure, thus allowing for post-Cold War globalization in the first place.
  • This is the real public good that the United States provides the world.
    • anonymous
       
      I posit that this is a slight misnomer. While it provides the world with a long, reliable trade route, it is still focused around maintaining U.S. global primacy and so serves a national interest. It doesn't befit us to get weepy-eyed at how much we've 'given.' Not that StratFor is DOING that, but I'm just trying to clear my throat on a tiny detail that (I think) matters.
    • Erik Hanson
       
      All of capitalism's worth is tied up in the external benefits stemming from self-interested actions, innit?
  • Beijing has been buying smart, investing in subs, ballistic missiles, and space and cyber warfare as part of a general defense build-up. China has no intention of going to war with the United States, but it does seek to impede in time of crisis U.S. military access to the South China Sea and the rest of maritime Asia.
  • China, through the combination of its economic and military power, will undermine the sovereignty of countries such as Vietnam, Malaysia, the Philippines and Singapore, all of which are de facto or de jure U.S. allies.
  • The country that is the biggest target for China is Vietnam, whose seaboard forms the western edge of the South China Sea and whose economically dynamic population of 87 million makes it a future maritime Turkey, a midlevel power in its own right
  • If China can "Finlandize" Vietnam, Beijing will in practical terms capture the South China Sea. This explains Washington's increasing military and interest in Hanoi.
    • Erik Hanson
       
      Dropped a word, there. ;)
  • The Chinese are simply unable to psychologically divorce their claims on the nearby South China Sea from the territorial depredations directed against China by the West in the 19th and early 20th centuries. To Chinese officials, the South China Sea represents blue national soil.
  • Of course, American diplomacy has been active on these matters for years, but U.S. diplomats would lack credibility if they were not backed by a robust military presence in the future. This is what the pivot is all about: The United States does not intend to desert maritime Asia in its hour of need. As one high-ranking diplomat of a South China Sea country told me, if the United States were to withdraw an aircraft carrier strike group from the region it would be a "game-changer," ushering the region toward Finlandization.
  • A profound socio-economic crisis in China itself -- something that by no means can be ruled out -- might have the effect of slowing this quasi-imperial rise. But that hasn't happened quite yet, and in the meantime, the United States is forced to react to China's growing military and commercial capabilities.
  • But the change in U.S. policy focus is not literally about containing China. "Containment" is a word of Cold War vintage related to holding ground against the Soviet Union, a country with which the United States had a one-dimensional, hostile relationship. The tens of thousands of American students and corporate executives in Beijing attest to the rich, multi-dimensional relationship the United States enjoys with China. China is so much freer than the former Soviet Union that to glibly state that China is "not a democracy" is to miss the point of China's rise entirely.
  • Were the United States not now to turn to the Indo-Pacific, it would risk a multipolar military order arising up alongside an already existent multipolar economic and political order. Multipolar military systems are more unstable than unipolar and bipolar ones because there are more points of interactions and thus more opportunities for miscalculations, as each country seeks to readjust the balance of power in its own favor.
  • If American power was diminished, China, India and other powers would be far more aggressive toward each other than they are now, for they all benefit from the secure sea lines of communication provided by the U. S. Navy and Air Force.
    • anonymous
       
      I buy this, and the relationship fascinates me. I like how U.S. control over the sea lanes tempers hostility. These nations can tolerate U.S. control more than they can their other regional competitors.
  • Australia, a country of only 23 million inhabitants, will spend $279 billion over the next two decades on submarines, fighter jets and other hardware. This is not militarism, but the reasonable response of a nation at the confluence of the Indian and Pacific oceans in order to account for its own defense in the face of rapidly changing power dynamics.
  •  
     by Robert D. Kaplan The Obama administration "pivot" to the Pacific, formally announced by Secretary of State Hillary Clinton last November and reiterated more recently by the president himself, might appear like a reassertion of America's imperial tendencies just at the time when Washington should be concentrating on the domestic economy. But in fact, the pivot was almost inevitable.
anonymous

Iran: Managing U.S. Military Action in Syria - 0 views

  • Notably, the rhetoric from Tehran -- particularly from its military leadership -- has been relatively tame.
  • Typically the government antagonizes Washington when U.S.-Iranian tensions heat up, and indeed the Syria situation has aggravated tensions. Syria is a critical Iranian ally, and the survival of the al Assad regime is a national security interest for Tehran. Iran cannot afford to directly retaliate against the United States, but it is widely expected to retaliate indirectly through militant proxies.
  • Iran's strategy involves more than just activating these proxy groups. It entails the kind of skillful maneuvering it displayed as the United States sought regime change in Afghanistan and Iraq.
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  • Tehran cooperated with Washington, and it benefited greatly from the downfall of the Taliban and Saddam Hussein accordingly. The Iranian strategists who helped devise those approaches are once again in power. Zarif, for example, was Tehran's point of contact with the George W. Bush administration in the early days after 9/11.
  • However, the Syria situation differs from those of Afghanistan and Iraq. This time it is Washington's aversion to regime change that Tehran is trying to exploit.
  • In fact, the only real reason the United States would want to replace al Assad is to curb Iran's regional influence, which grew considerably after Saddam's ouster.
  • An unfriendly Syria could cut Tehran off from Hezbollah, its pre-eminent non-state Arab ally, and jeopardize the position of its Iraqi allies.
  • limited airstrikes on Syria that do not undermine the al Assad regime could actually work in Iran's favor. Such airstrikes could divide the rebellion between factions that oppose military intervention and those that favor it.
  • what really gives Iran leverage is the fact that since 9/11, jihadists and Islamist groups have had the opportunity to gain power when Arab regimes collapse.
  • Unlike Syria's Arab neighbors, which want stability in the region, Iran welcomes disruption. It is reasonably secure internally, and it knows its spheres of influence may weaken but ultimately will not dissolve.
  •  
    "Conventional wisdom says that a weakened Syria would undermine Iran's regional influence, but a U.S. military intervention in the country could actually benefit Tehran. The government there has devised a sophisticated strategy for responding to a U.S. attack. Of course, Tehran would activate its militant proxies in the region, including Hezbollah, in the event that the United States launches an attack, but it would also exploit Washington's visceral opposition to Sunni jihadist and Islamist groups to gain concessions elsewhere."
anonymous

Geopolitical Journey: The U.S.-European Relationship, Then and Now - 0 views

  • We have spoken of the Russians, but for all the flash in their Syria performance, they are economically and militarily weak -- something they would change if they had the means to do so. It is Europe, taken as a whole, that is the competitor for the United States. Its economy is still slightly larger than the United States', and its military is weak, though unlike Russia this is partly by design.
  • American intervention helped win World War I, and American involvement in Europe during World War II helped ensure an allied victory. The Cold War was a transatlantic enterprise, resulting in the withdrawal of Soviet forces from the European Peninsula.
  • The question now is: What will the relationship be between these two great economic entities, which together account for roughly 50 percent of the world's gross domestic product, in the 21st century? That question towers over all others globally.
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  • The Syrian crisis began not with the United States claiming that action must be taken against al Assad's use of chemical weapons but with calls to arms from the United Kingdom, France and Turkey.
  • The United States was rather reluctant, but ultimately it joined these and several other European countries. Only then did the Europeans' opinions diverge.
  • Most important to note was the division of Europe. Each country crafted its own response -- or lack of response -- to the Syrian crisis. The most interesting position was taken by Germany, which was unwilling to participate and until quite late unwilling to endorse participation.
  • Their differences have not manifested as virulently as they did before 1945, but still, it can no longer be said that their foreign policies are synchronized. In fact, the three major powers on the European Peninsula currently are pursuing very different foreign policies.
  • Nothing has ruptured in Europe, but then Europe as a concept has always been fluid. The European Union is a free trade zone that excludes some European countries. It is a monetary union that excludes some members of the free trade zone. It has a parliament but leaves defense and foreign policy prerogatives to sovereign nation-states. It has not become more organized since 1945; in some fundamental ways, it has become less organized.
  • Where previously there were only geographical divisions, now there are also conceptual divisions.
  • no individual European nation has the ability by itself to conduct an air attack on Syria. As Libya showed, France and Italy could not execute a sustained air campaign. They needed the United States.
  • I am old enough to remember that Europeans have always thought of U.S. presidents as either naive, as they did with Jimmy Carter, or as cowboys, as they did with Lyndon Johnson, and held them in contempt in either case.
  • After some irrational exuberance from the European left, Obama has now been deemed naive, just as George W. Bush was deemed a cowboy.
  • Amid profound differences and distrust, U.S. and Soviet leaders managed to avoid the worst. Given their track record, Europe's leaders might have plunged the world further into disaster.
  • The Europeans think well of the sophistication of their diplomacy. I have never understood why they feel that way.
  • We saw this in Syria.
  • First, Europe was all over the place. Then the coalition that coaxed the Americans in fell apart, leaving the United States virtually alone. When Obama went back to his original position, they decided that he had been outfoxed by the Russians. Had he attacked, he would have been dismissed as another cowboy.
  • Whichever way it had gone, and whatever role Europe played in it, it would have been the Americans that simply didn't understand one thing or another.
  • The American view of Europe is a combination of indifference and bafflement. Europe has not mattered all that much to the United States since the end of the Cold War.
  • all of Europe became Scandinavia. It was quite prosperous, a pleasure to visit, but not the place in which history was being made.
  • When Americans can be bothered to think of Europe, they think of it as a continent with strong opinions of what others should do but with little inclination to do something itself.
  • The American perception of Europe is that it is unhelpful and irritating but ultimately weak and therefore harmless.
  • The Europeans are obsessed with the U.S. president because, fool or cowboy or both, he is extraordinarily powerful. The Americans are indifferent to the Europeans not because they don't have sophisticated leaders but because ultimately their policies matter more to each other than they do to the United States.
  • But the most profound rift between the Americans and Europeans, however, is not perception or attitude. It is the notion of singularity, and many of the strange impressions or profound indifferences between the two stem from this notion.
  • The dialogue between Europe and the United States is a dialogue between a single entity and the tower of Babel.
  • For example, a friend pointed out that he spoke four languages but Americans seem unable to learn one. I pointed out that if he took a weekend trip he would need to speak four languages. Citizens of the United States don't need to learn four languages to drive 3,000 miles.
    • anonymous
       
      This is an absolutely crucial point and another reason why geography is a very powerful - and perplexingly invisible - determiner of action.
  • The United States is a unified country with unified economic, foreign and defense policies. Europe never fully came together; in fact, for the past five years it has been disintegrating.
  • Division, as well as a fascinating pride in that division, is one of Europe's defining characteristics. Unity, as well as fascinating convictions that everything is coming apart, is one of the United States' defining characteristics.
  • Europe's past is magnificent, and its magnificence can be seen on the streets of any European capital. Its past haunts and frightens it. Its future is not defined, but its present is characterized by a denial and a distance from its past. U.S. history is much shallower. Americans build shopping malls on top of hallowed battlefields and tear down buildings after 20 years. The United States is a country of amnesia. It is obsessed with its future, and Europe is paralyzed by its past. 
  • Where once we made wars together, we now take vacations. It is hard to build a Syria policy on that framework, let alone a North Atlantic strategy.
  •  
    "Most discussions I've had in my travels concern U.S. President Barack Obama's failure to move decisively against Syria and how Russian President Vladimir Putin outmatched him. Of course, the Syrian intervention had many aspects, and one of the most important ones, which was not fully examined, was what it told us about the state of U.S.-European relations and of relations among European countries. This is perhaps the most important question on the table."
anonymous

Think Again: Ronald Reagan - 0 views

  • The Gipper wasn't the warhound his conservative followers would have you think.
  • These days, virtually every time someone on the American right bashes President Barack Obama for kowtowing to dictators or failing to shout that we're at war, they light a votive candle to Ronald Reagan.
  • He launched exactly one land war, against Grenada, whose army totaled 600 men. It lasted two days. And his only air war -- the 1986 bombing of Libya -- was even briefer.
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  • at an early meeting, when Secretary of State Alexander Haig suggested that achieving this goal might require bombing Cuba, the suggestion "scared the shit out of Ronald Reagan," according to White House aide Michael Deaver. Haig was marginalized, then resigned, and Reagan never seriously considered sending U.S. troops south of the border, despite demands from conservative intellectuals like Norman Podhoretz and William F. Buckley.
  • Reagan's political genius lay in recognizing that what Americans wanted was a president who exorcised the ghost of the Vietnam War without fighting another Vietnam. Although Americans enjoyed Reagan's thunderous denunciations of Central American communism, 75 percent of them, according to a 1985 Louis Harris survey, opposed invading Nicaragua.
  • So Reagan created Potemkin Vietnams. His biographer Lou Cannon calls him "shameless" in using Grenada to revive America's Vietnam-wounded pride. The war resulted in more medals per soldier than any military operation in U.S. history. When he bombed Libya in 1986, Reagan goosed American nationalism again, declaring, "Every nickel-and-dime dictator the world over knows that if he tangles with the United States of America, he will pay a price."
  • Reagan's role in winning the Cold War lies at the core of the American right's mythology.
  • The legend goes like this: Reagan came into office, dramatically hiked defense spending, unveiled the Strategic Defense Initiative (his "Star Wars" missile shield), and aided anti-communist rebels in the Third World. Unable to keep pace, the Kremlin chose Gorbachev, who threw in the towel.
  • Reagan began abandoning his hard-line anti-Soviet stance in late 1983, 18 months before Gorbachev took power.
  • Reagan, who had long harbored a genuine terror of nuclear war reflected in his decades-old belief -- often ignored by backers on the right -- that nuclear weapons should eventually be abolished.
  • In 1983, two movies triggered Reagan's latent anti-nuclear views: Matthew Broderick's WarGames, which portrays a young computer hacker who almost starts a nuclear war, and ABC's The Day After, which depicts Lawrence, Kansas, in the aftermath of one.
  • According to Colin Powell, national security advisor from 1987 to 1989, Reagan had been deeply affected by the 1951 film The Day the Earth Stood Still
  • This combination of electoral and psychological anxiety led Reagan, late in his first term, to begin a dramatic rhetorical shift. Declaring that "nuclear arsenals are far too high," in January 1984 he told the country that "my dream is to see the day when nuclear weapons will be banished from the face of the Earth."
  • When they did meet in Geneva, in November, Reagan whispered to Gorbachev, "I bet the hard-liners in both our countries are bleeding when we shake hands."
  • An initial meeting scheduled for 15 minutes lasted five hours.
  • By 1988, though the Soviet Union had not yet released Eastern Europe from its grip, Reagan was explicitly denying that the Soviet Union still constituted an "evil empire" and had begun calling Gorbachev "my friend."
  • Commentary's Norman Podhoretz declared that neoconservatives were "sinking into a state of near political despair."
  • By 1984, after Reagan withdrew troops from their peacekeeping mission in Lebanon, Podhoretz moaned that "in the use of military power, Mr. Reagan was much more restrained" than his right-wing supporters had hoped.
  • In 1986, when Reagan would not cancel his second summit with Gorbachev over Moscow's imprisonment of an American journalist, Podhoretz accused him of having "shamed himself and the country" in his "craven eagerness" to give away the nuclear store.
  • Will wrote that he "is painfully fond of the least conservative sentiment conceivable, a statement taken from an anti-conservative, Thomas Paine: 'We have it in our power to begin the world over again.' Any time, any place, that is nonsense."
  • the irony is that in Reagan's own "war on terror," his policies more closely resembled Obama's than Bush's.
  • Almost five years later, in his final moments as president, he told press secretary Marlin Fitzwater that "the only regret I have after eight years is sending those troops to Lebanon." Then he saluted and walked out of the Oval Office for the last time.
  • Of course, the 9/11 attacks gave Bush a massive jolt of popularity and sent Congress diving for cover, all of which made the invasions of Afghanistan and Iraq much easier.
  • For many contemporary conservatives, being a Reagan disciple means acting as if there are no limits to American strength. But the real lessons of Reaganism are about how to wield national power and bolster national pride when your hands are partially tied.
  • That means understanding that America's foreign-policy debates are often cultural debates in disguise.
  • If Obama does not want to be Jimmy Carter, if he does not want Americans to equate his restraint with their humiliation, he must be as aggressive as Reagan in finding symbolic ways to soothe Americans' wounded pride.
  • Obama needs to remind Americans that their most successful Cold War presidents -- Reagan included -- saw the conflict as a primarily economic struggle.
  • In the nascent economic and ideological struggle between the United States and China, wars that Washington cannot possibly pay for -- and which leave the country more reliant on foreign central bankers -- don't make America stronger; they make it weaker.
  •  
    By Peter Beinart at Foreign Policy on June 7, 2010. I have always been fascinated by the difference between perception and reality when it comes to Reagan.
anonymous

The 30-Year War in Afghanistan - 0 views

  • The Afghan War is the longest war in U.S. history. It began in 1980 and continues to rage. It began under Democrats but has been fought under both Republican and Democratic administrations, making it truly a bipartisan war. The conflict is an odd obsession of U.S. foreign policy, one that never goes away and never seems to end. As the resignation of Gen. Stanley McChrystal reminds us, the Afghan War is now in its fourth phase.
  • The first phase of the Afghan War began with the Soviet invasion in December 1979, when the United States, along with Saudi Arabia and Pakistan, organized and sustained Afghan resistance to the Soviets.
  • The second phase lasted from 1989 until 2001.
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  • The third phase began on Sept. 11, 2001, when al Qaeda launched attacks on the mainland United States.
  • The fourth phase of the war began in 2009, when U.S. President Barack Obama decided to pursue a more aggressive strategy in Afghanistan. Though the Bush administration had toyed with this idea, it was Obama who implemented it fully.
  • While al Qaeda was based in Afghanistan in 2001, Afghanistan is no longer its primary base of operations. The group has shifted to Pakistan, Yemen, Somalia and other countries. As al Qaeda is thus not dependent on any one country for its operational base, denying it bases in Afghanistan does not address the reality of its dispersion. Securing Afghanistan, in other words, is no longer the solution to al Qaeda.
  • the real strategy is to return to the historical principles of U.S. involvement in Afghanistan: alliance with indigenous forces.
  • The American strategy is, therefore, to maintain a sufficient force to shape the political evolution on the ground, and to use that force to motivate and intimidate while also using economic incentives to draw together a coalition in the countryside.
  • Afghanistan ultimately is not strategically essential, and this is why the United States has not historically used its own forces there.
  • The forces the United States and its allies had trained and armed now fought each other in complex coalitions for control of Afghanistan. Though the United States did not take part in this war directly, it did not lose all interest in Afghanistan.
  • First, the Americans intended to keep al Qaeda bottled up and to impose as much damage as possible on the group.
  • Second, they intended to establish an Afghan government, regardless of how ineffective it might be, to serve as a symbolic core.
  • Third, they planned very limited operations against the Taliban, which had regrouped and increasingly controlled the countryside.
  • The three phases of American involvement in Afghanistan had a common point: All three were heavily dependent on non-U.S. forces to do the heavy lifting. In the first phase, the mujahideen performed this task. In the second phase, the United States relied on Pakistan to manage Afghanistan’s civil war. In the third phase, especially in the beginning, the United States depended on Afghan forces to fight the Taliban.
  • The United States commenced operations barely 30 days after Sept. 11, which was not enough time to mount an invasion using U.S. troops as the primary instrument. Rather, the United States made arrangements with factions that were opposed to the Taliban (and defeated in the Afghan civil war).
  •  
    By George Friedman on July 29, 2010
anonymous

Russian Spies and Strategic Intelligence - 0 views

  • The way the media has reported on the issue falls into three groups: That the Cold War is back, That, given that the Cold War is over, the point of such outmoded intelligence operations is questionable, And that the Russian spy ring was spending its time aimlessly nosing around in think tanks and open meetings in an archaic and incompetent effort.
  • First, it needs to know what other nations are capable of doing.
  • Second, the nation needs to know what other nations intend to do.
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  • The more powerful a nation is, the more important it is to understand what it is doing.
  • Knowing what the United States will do, and shifting policy based on that, can save countries from difficulties and even disaster.
  • What they excelled at, however, was placing undetectable operatives in key positions. Soviet talent scouts would range around left-wing meetings to discover potential recruits. These would be young people with impeccable backgrounds and only limited contact with the left. They would be recruited based on ideology, and less often via money, sex or blackmail. They would never again be in contact with communists or fellow travelers.
  • Recruiting people who were not yet agents, creating psychological and material bonds over long years of management and allowing them to mature into senior intelligence or ministry officials allowed ample time for testing loyalty and positioning. The Soviets not only got more reliable information this way but also the ability to influence the other country’s decision-making.
  • There were four phases: Identifying likely candidates, Evaluating and recruiting them, Placing them and managing their rise in the organization, And exploiting them.
  • It is difficult to know what the Russian team was up to in the United States from news reports, but there are two things we know about the Russians: They are not stupid, and they are extremely patient.
  • If we were to guess — and we are guessing — this was a team of talent scouts.
  • One of the Russian operatives, Don Heathfield, once approached a STRATFOR employee in a series of five meetings.
  • We would guess that Anna Chapman was brought in as part of the recruitment phase of talent scouting.
  • Each of the phases of the operatives’ tasks required a tremendous amount of time, patience and, above all, cover. The operatives had to blend in (in this case, they didn’t do so well enough).
  • Were the Americans to try the same thing, they would have to convince people to spend years learning Russian to near-native perfection and then to spend 20-30 years of their lives in Russia. Some would be willing to do so, but not nearly as many as there are Russians prepared to spend that amount of time in the United States or Western Europe.
  • The United States has substituted technical intelligence for this process. Thus, the most important U.S. intelligence-collection agency is not the CIA; it is the National Security Agency (NSA).
  • In many ways, this provides better and faster intelligence than the placement of agents, except that this does not provide influence.
  • it assumes that what senior (and other) individuals say, write or even think reveals the most important things about the country in question.
  • The fall of the Shah of Iran and the collapse of the Soviet empire were events of towering importance for the United States.
  • Either of those scenarios would not have made any difference to how events played out. This is because, in the end, the respective senior leadership didn’t know how events were going to play out. Partly this is because they were in denial, but mostly this is because they didn’t have the facts and they didn’t interpret the facts they did have properly. At these critical turning points in history, the most thorough penetration using either American or Russian techniques would have failed to provide warning of the change ahead.
  • The people being spied on and penetrated simply didn’t understand their own capabilities — i.e., the reality on the ground in their respective countries — and therefore their intentions about what to do were irrelevant and actually misleading.
  • if we regard anticipating systemic changes as one of the most important categories of intelligence, then these are cases where the targets of intelligence may well know the least and know it last.
  • We started with three classes of intelligence: capabilities, intentions and what will actually happen.
  • The first is an objective measure that can sometimes be seen directly but more frequently is obtained through data held by someone in the target country. The most important issue is not what this data says but how accurate it is.
  • For example, George W. Bush did not intend to get bogged down in a guerrilla war in Iraq. What he intended and what happened were two different things because his view of American and Iraqi capabilities were not tied to reality.
  • But in the end, the most important question to ask is whether the most highly placed source has any clue as to what is going to happen.
  • Knowledge of what is being thought is essential. But gaming out how the objective and impersonal forces will interact and play out it is the most important thing of all.
  • The events of the past few weeks show intelligence doing the necessary work of recruiting and rescuing agents. The measure of all of this activity is not whether one has penetrated the other side, but in the end, whether your intelligence organization knew what was going to happen and told you regardless of what well-placed sources believed. Sometimes sources are indispensable. Sometimes they are misleading. And sometimes they are the way an intelligence organization justifies being wrong.
    • anonymous
       
      This feels like that old saying, amateurs study tactics but experts study logistics. Perhaps that's the angle on this spying stuff that we haven't taken because we subconsciously imagine the crap of popular culture where knowledge should be.
    • anonymous
       
      It certainly makes my thoughts here (http://longgame.org/2010/07/spies-like-them/) feel pretty damned quaint.
  • There appeared to be no goal of recruitment; rather, the Russian operative tried to get the STRATFOR employee to try out software he said his company had developed. We suspect that had this been done, our servers would be outputting to Moscow. We did not know at the time who he was.
  •  
    Some amount of spying is the cost of doing business for any power. By George Friedman at StratFor on July 13, 2010.
anonymous

By their use shall ye know them - 0 views

  • the language is constantly evolving, and all that. Newspapers like The Economist maintain a strict style guide less because of a priggish conservatism than because of the simple need for consistency among dozens or hundreds of writers.
  • Still, by making this out to be an issue of linguistic freedom versus dictatorship, I think Mr Carey skates over the fact that such debates are most often just a proxy for ad hominem attacks; in other words, when people criticise non-words, it's usually just a lazy way to criticise their users. The anti-George Bush crowd professed to hate how the former president mangled the English language, but secretly they loved it. When someone says "misunderestimated" and "unthaw", or confuses "authoritarian" with "authoritative", sniggering at it is a way to avoid the harder work of actually demonstrating that he doesn't know what he's talking about. Or, to repeat a quote from our stylebook that my colleague used only recently:Nobody needs to be described as silly: let your analysis show that he is.
  •  
    "the language is constantly evolving, and all that. Newspapers like The Economist maintain a strict style guide less because of a priggish conservatism than because of the simple need for consistency among dozens or hundreds of writers." A bit about language. By G.L. at The Economist on July 15, 2010.
anonymous

The Tea Party and Insurgency Politics - 0 views

  • The political lesson, worth pondering in these times of Tea Party rumbling, is that serious protest movements such as the Perot phenomenon or today’s Tea Party revolt never just fade away. They linger in American politics, sometimes largely unseen but sometimes quite overt, and exert a continuing tug on the course of electoral decision-making. Eventually they get absorbed into one major party or the other. In the process, they often tilt the balance of political power in the country, occasionally for substantial periods of time.
  • What it represents and portends can best be scrutinized by trying to answer three fundamental questions:
  • First, is this movement for real and is it enduring? The answer is yes.
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  • The second question is, where did this movement come from? What precisely were the impulses, angers and fears that spawned this seemingly spontaneous wave of civic energy?
  • But most Tea Party leaders emphasize three general principles.
  • The first is “fiscal responsibility,” which includes a strong aversion to huge federal deficits and the yawning national debt.
  • The second principle is “constitutionally limited government,” which implies states’ rights and the protection of individual liberties from federal intrusion.
  • the third is “free markets,” seen by Tea Party adherents as the protection of intertwined “individual and economic liberty.
  • Both the Jackson and Clay traditions have reverberated through American politics for nearly 200 years.
  • The third question centers on how the Tea Party will influence American politics in the coming years.
  • Indeed, much of the flow of American politics that angers Tea Party adherents — increased federal spending, growing deficits, Washington’s earmark culture, the looming entitlement crises — were in full force during the Bush years. That’s why Tea Party adherents are so bent on busting up the Washington establishment by first busting up the GOP.
  •  
    "The political lesson, worth pondering in these times of Tea Party rumbling, is that serious protest movements such as the Perot phenomenon or today's Tea Party revolt never just fade away. They linger in American politics, sometimes largely unseen but sometimes quite overt, and exert a continuing tug on the course of electoral decision-making. Eventually they get absorbed into one major party or the other. In the process, they often tilt the balance of political power in the country, occasionally for substantial periods of time." By Robert W. Merry at StratFor on September 17, 2010.
anonymous

Elections and Obama's Foreign Policy Choices - 0 views

  • While we normally do not concern ourselves with domestic political affairs in the United States, when the only global power is undergoing substantial political uncertainty, that inevitably affects its behavior and therefore the dynamics of the international system.
  • three things
  • First, while Obama won a major victory in the Electoral College, he did not come anywhere near a landslide in the popular vote.
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  • Second, he entered the presidency off balance.
  • Third, while in office, Obama tilted his focus away from the foreign affairs plank he ran on to one of domestic politics. In doing so, he shifted from the area where the president is institutionally strong to the place where the president is institutionally weak.
  • This is not because of the prospect of midterm reversals — that has happened any number of times. It is because Obama, like Bush, was off balance from the beginning.
  • This would indicate that Obama’s best strategy is to go into opposition, government against Congress. But there are two problems with this.
  • One of the underlying themes of the Obama presidency is that he is ineffective in getting his economic agenda implemented. That’s not really true, given the successes he has had with health-care reform and banking regulation, but it is still a theme. The other problem he has is the sense that he has surged in Afghanistan while setting a deadline for withdrawal and that his Afghan policy is merely a political gesture.
  • We come back to foreign policy as a place where Obama will have to focus whether he likes it or not. He takes his bearings from Franklin Roosevelt, and the fact is that Roosevelt had two presidencies. One was entirely about domestic politics and the other about foreign policy, or the Depression and then World War II
  • Obama will come out of the November election having to turn over his cards on the only area where he can have traction — Iraq, Iran and Afghanistan. The question is what he might do.
  • a strike against Iranian nuclear targets alone would be the riskiest.
  • In 1971, Richard Nixon reached out to China while Chinese weapons were being used to kill American soldiers in Vietnam. Roosevelt did the same with the Soviets in 1941. There is a tradition in the United States of a diplomatic stroke with ideological enemies to achieve strategic ends.
  • The Republicans would be appalled, but Obama can’t win them over anyway so it doesn’t matter. Indeed, he can use their hostility to strengthen his own base.
  • I wouldn’t be so bold as to predict his actions, but I would argue that he faces some unappetizing choices that he could solve with a very bold move in foreign policy. His options on the domestic side will disappear if the polls are right.
  •  
    "We are now nine weeks away from the midterm elections in the United States. Much can happen in nine weeks, but if the current polls are to be believed, U.S. President Barack Obama is about to suffer a substantial political reversal." By George Friedman at StratFor on September 14, 2010.
anonymous

9/11 and the 9-Year War - 0 views

  • It has now been nine years since al Qaeda attacked the United States. It has been nine years in which the primary focus of the United States has been on the Islamic world.
  • Any American not frightened on Sept. 12 was not in touch with reality. Many who are now claiming that the United States overreacted are forgetting their own sense of panic. We are all calm and collected nine years after.
  • At the root of all of this was a profound lack of understanding of al Qaeda, particularly its capabilities and intentions. Since we did not know what was possible, our only prudent course was to prepare for the worst. That is what the Bush administration did.
    • anonymous
       
      This is another example of the American tradition of underestimating your opponents and then suddenly overestimating them once caught off guard.
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  • Al Qaeda learned from Soviet, Saudi, Pakistani and American intelligence during the Soviet occupation of Afghanistan and knew how to launch attacks without tipping off the target. The greatest failure of American intelligence was not the lack of a clear warning about 9/11 but the lack, on Sept. 12, of a clear picture of al Qaeda’s global structure, capabilities, weaknesses and intentions.
  • American policy became ready, fire, aim.
  • In looking back at the past nine years, two conclusions can be drawn: There were no more large-scale attacks on the United States by militant Islamists, and the United States was left with the legacy of responses that took place in the first two years after 9/11.
  • Even in hindsight, aligning U.S. actions with the apparent outcome is difficult and controversial. But still we know two things: It has been nine years since Sept. 11, 2001, and the war goes on.
  • an act of terrorism was allowed to redefine U.S. grand strategy.
  • the United States proceeded with a strategy whose goal, like that of the United Kingdom, was to nip potential regional hegemons in the bud. The U.S. war with Iraq in 1990-91 and the war with Serbia/Yugoslavia in 1999 were examples of this strategy.
  • The most significant effect of 9/11 was that it knocked the United States off its strategy. Rather than adapting its standing global strategy to better address the counterterrorism issue, the United States became obsessed with a single region, the area between the Mediterranean and the Hindu Kush.
  • as a long-term U.S. strategy — the long war that the U.S. Department of Defense is preparing for — it leaves the rest of the world uncovered.
  • The single most important result of 9/11 was that it shifted the United States from a global stance to a regional one, allowing other powers to take advantage of this focus to create significant potential challenges to the United States.
  • The fact that Afghanistan was the base from which the attacks were launched does not mean that al Qaeda depends on Afghanistan to launch attacks.
  • But let me state a more radical thesis: The threat of terrorism cannot become the singular focus of the United States. Let me push it further: The United States cannot subordinate its grand strategy to simply fighting terrorism even if there will be occasional terrorist attacks on the United States. Three thousand people died in the 9/11 attack. That is a tragedy, but in a nation of over 300 million, 3,000 deaths cannot be permitted to define the totality of national strategy.
    • anonymous
       
      Play the numbers again and you find that far more Americans died that year of far more mundane reasons. But this is never considered as one factor among many when tempers are flaring.
  • The issue there is not whether the United States can or can’t win, however that is defined. The issue is whether it is worth the effort considering what is going on in the rest of the world.
  •  
    "In order to understand the last nine years you must understand the first 24 hours of the war - and recall your own feelings in those 24 hours. First, the attack was a shock, its audaciousness frightening. Second, we did not know what was coming next. The attack had destroyed the right to complacent assumptions. Were there other cells standing by in the United States? Did they have capabilities even more substantial than what they showed on Sept. 11? Could they be detected and stopped? Any American not frightened on Sept. 12 was not in touch with reality. Many who are now claiming that the United States overreacted are forgetting their own sense of panic. We are all calm and collected nine years after." By George Friedman at StratFor on September 8, 2010.
anonymous

U.S. Midterm Elections, Obama and Iran - 0 views

  • Obama now has two options in terms of domestic strategy.
  • The first is to continue to press his agenda, knowing that it will be voted down.
  • The second option is to abandon his agenda, cooperate with the Republicans and re-establish his image as a centrist.
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  • Obama also has a third option, which is to shift his focus from domestic policy to foreign policy.
  • There are two problems with Obama becoming a foreign policy president.
  • The first is that the country is focused on the economy and on domestic issues.
  • The second problem is that his presidency and campaign have been based on the general principle of accommodation rather than confrontation in foreign affairs
  • There are many actions that would satisfy Obama’s accomodationist inclinations, but those would not serve well in portraying him as decisive in foreign policy.
  • This leaves the obvious choice: Iran.
  • So far, Obama’s policy toward Iran has been to incrementally increase sanctions by building a weak coalition and allow the sanctions to create shifts in Iran’s domestic political situation. The idea is to weaken President Mahmoud Ahmadinejad and strengthen his enemies, who are assumed to be more moderate and less inclined to pursue nuclear weapons. Obama has avoided overt military action against Iran, so a confrontation with Iran would require a deliberate shift in the U.S. stance, which would require a justification.
  • The most obvious justification would be to claim that Iran is about to construct a nuclear device. Whether or not this is true would be immaterial.
  • First, no one would be in a position to challenge the claim, and, second, Obama’s credibility in making the assertion would be much greater than George W. Bush’s, given that Obama does not have the 2003 weapons-of-mass-destruction debacle to deal with and has the advantage of not having made such a claim before.
  • Defining what it means to almost possess nuclear weapons is nearly a metaphysical discussion. It requires merely a shift in definitions and assumptions. This is cynical scenario, but it can be aligned with reasonable concerns.
  • As STRATFOR has argued in the past, destroying Iran’s nuclear capability does not involve a one-day raid, nor is Iran without the ability to retaliate. Its nuclear facilities are in a number of places and Iran has had years to harden those facilities. Destroying the facilities might take an extended air campaign and might even require the use of special operations units to verify battle damage and complete the mission. In addition, military action against Iran’s naval forces would be needed to protect the oil routes through the Persian Gulf from small boat swarms and mines, anti-ship missile launchers would have to be attacked and Iranian air force and air defenses taken out. This would not solve the problem of the rest of Iran’s conventional forces, which would represent a threat to the region, so these forces would have to be attacked and reduced as well.
  • An attack on Iran would not be an invasion, nor would it be a short war. Like Yugoslavia in 1999, it would be an extended air war lasting an unknown number of months.
  • It would be a war based on American strengths in aerial warfare and technology, not on American weaknesses in counterinsurgency.
  • It would strengthen the Iranian regime (as aerial bombing usually does) by rallying the Iranian public to its side against the aggression. If the campaign were successful, the Iranian regime would be stronger politically, at least for a while, but eviscerated militarily.
  • A campaign against Iran would have its risks.
  • Iran could launch a terrorist campaign and attempt to close the Strait of Hormuz
  • We have argued that a negotiation with Iran in the order of President Richard Nixon’s reversal on China would be a lower-risk solution to the nuclear problem than the military option. But for Obama, this is politically difficult to do. Had Bush done this, he would have had the ideological credentials to deal with Iran, as Nixon had the ideological credentials to deal with China. But Obama does not. Negotiating an agreement with Iran in the wake of an electoral rout would open the floodgates to condemnation of Obama as an appeaser. In losing power, he loses the option for negotiation unless he is content to be a one-term president.
  • I am arguing the following.
  • First, Obama will be paralyzed on domestic policies by this election. He can craft a re-election campaign blaming the Republicans for gridlock.
  • The other option for Obama is to look for triumph in foreign policy where he has a weak hand.
  • I am not claiming that Obama will decide to do this based on politics, although no U.S. president has ever engaged in foreign involvement without political considerations, nor should he. I am saying that, at this moment in history, given the domestic gridlock that appears to be in the offing, a shift to a foreign policy emphasis makes sense, Obama needs to be seen as an effective commander in chief and Iran is the logical target.
  • This is not a prediction. Obama does not share his thoughts with me. It is merely speculation on the options Obama will have after the midterm elections, not what he will choose to do.
  •  
    "We are a week away from the 2010 U.S. midterm elections. The outcome is already locked in. Whether the Republicans take the House or the Senate is close to immaterial. It is almost certain that the dynamics of American domestic politics will change. The Democrats will lose their ability to impose cloture in the Senate and thereby shut off debate. Whether they lose the House or not, the Democrats will lose the ability to pass legislation at the will of the House Democratic leadership. The large majority held by the Democrats will be gone, and party discipline will not be strong enough (it never is) to prevent some defections. " By George Friedman at StratFor on October 26, 2010.
anonymous

Obama: After the Election - 0 views

  • That means it is entirely possible that a slew of miscalculations are being made today. One of the most widespread misconceptions about the U.S. political system is that a president who is weak at home is by default weak abroad. This is a belief primarily promulgated by Americans themselves. After all, if one cannot get behind one’s leader, what business does that leader have engaging in global affairs? But in reality, a president who is weak at home often wields remarkable power abroad. The U.S. Constitution forces the American president to share domestic power with Congress, so a split government leads to domestic policy gridlock. However, the Constitution also expressly reserves all foreign policy — particularly military policy — for the presidency. In fact, a weak president often has no options before him except foreign policy. This is something that the rest of the world repeatedly has failed to grasp. Domestically weakened American presidents have often done more than engage in foreign policy: They have overturned entire international orders. Former U.S. President George W. Bush defied expectations after his 2006 midterm electoral defeat and launched the surge in Iraq, utterly changing the calculus of that war. Clinton launched the Kosovo War, which undid what remained of the Cold War security architecture. Most famously, John Kennedy, whom the Soviets had written off as a weak and naive dilettante who had surrounded himself with incompetent advisers (sound familiar?), gave the Russians their biggest Cold War diplomatic defeat in the Cuban Missile Crisis. The United States might be distracted and its president domestically weakened, and undoubtedly most of the world will assume that they know what this means. But history tells a very different story, and this president — like his predecessors — is not done just yet.
  •  
    "Nov. 2 marked midterm elections in the United States with more than 600 electoral contests, enough of which were resolved in favor of the Republicans to deny the Democrats full control of Congress. The country will be digesting the results and their implications for weeks. What STRATFOR will do now is address this simple fact: U.S. President Barack Obama, whose time in office began with a supportive Congress, has lost his ability to dictate the domestic policy agenda." At StratFor on November 3, 2010.
anonymous

A Lost Generation - 0 views

  • This economic downturn structurally resembles the depressions of the 1890s and the 1930s rather than the cyclical recessions that have recurred since World War II. The American people, mired in debt, with one in six lacking full-time employment, are not spending; and businesses, uncertain of demand for their products, are not investing no matter how low interest rates fall. With the Fed virtually powerless, the only way to stimulate private demand and investment is through public spending. Obama tried to do this with his initial stimulus program, but it was watered down by tax cuts, and undermined by decreases in state spending. By this summer, its effect had dissipated.
  • Many voters have concluded that Obama’s stimulus program actually contributed to the rise in unemployment and that cutting public spending will speed a recovery. It’s complete nonsense, as the experience of the United States in 1937 or of Japan in the 1990s demonstrated, but it will guide Republican thinking in Congress, and prevent Obama and the Democrats from passing a new stimulus program.
  • as the Obama administration recognized, much of the new demand will focus on the development of renewable energy and green technology. As the Chinese, Japanese, and Europeans understand, these kinds of industries require government coordination and subsidies. But the new generation of Republicans rejects this kind of industrial policy. They even oppose Obama’s obviously successful auto bailout.
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  • Obama has to share some of the blame. Structural crises like the Civil War or the two Great Depressions present presidents with formidable challenges, but also great opportunities. If they fail, they discredit themselves and their party, as Hoover did after 1929; but if they succeed, as McKinley and Theodore Roosevelt did after 1896 or Franklin Roosevelt did after 1932, they not only help the country, but also create enduring majorities for their party.
  • According to exit polls, 53 percent of voters in House races had an unfavorable view of the Republican Party and only 41 percent had a favorable view. I found this myself in interviewing suburban Philadelphia voters last weekend. Even those who said they were Republicans had grave doubts about what the party stood for and regarded the Tea Partiers as “wackos.”
  • In 2001, Karl Rove believed that George W. Bush had created a new McKinley majority that would endure for decades; and when Obama was elected, many Democrats, including me, thought that he had a chance to create a Roosevelt-like Democratic majority. But instead, like Japan, we’ve had a succession of false dawns, or what Walter Dean Burnham once called an “unstable equilibrium.”
  •  
    "Republicans might say it's the re-emergence of a conservative Republican majority, but that's not really what happened. What this election suggests to me is that the United States may have finally lost its ability to adapt politically to the systemic crises that it has periodically faced. The U.S emerged from the Civil War, the depression of the 1890s, World War I, and the Great Depression and World War II stronger than ever-with a more buoyant economy and greater international standing. A large part of the reason was the political system's ability to provide the leadership the country needed. But what this election suggests to me is that this may no longer be the case." By John B. Ludis at The New Republic on November 3, 2010.
anonymous

Post-Tea-Party Nation - 0 views

  • while the Bush administration took wise and bold steps to correct the disaster, the unpopularity of its Troubled Asset Relief Program bequeathed the Obama administration a political disaster alongside the economic disaster.
  • If Republicans are to act effectively and responsibly, we need to learn more positive and productive lessons from the crisis.
  • Lesson 1: The danger of closed information systems.
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  • Too often, conservatives dupe themselves. They wrap themselves in closed information systems based upon pretend information. In this closed information system, banks can collapse without injuring the rest of the economy, tax cuts always pay for themselves and Congressional earmarks cause the federal budget deficit. Even the market collapse has not shaken some conservatives out of their closed information system. It enfolded them more closely within it. This is how to understand the Glenn Beck phenomenon.
  • Meanwhile, Republican officeholders who want to explain why they acted to prevent the collapse of the U.S. banking system can get no hearing from voters seized with certainty that a bank collapse would have done no harm to ordinary people.
  • Lesson 2: “The market” (the whole free-market system) must be distinguished from “the markets” (the trading markets for financial assets).
  • the intellectual right accords a deference to the wants and wishes of the financial industry that is seldom accorded to agriculture, manufacturing, transport or retailing.
  • But it’s not always true that what’s good for Goldman Sachs is good for the economy, or vice versa. Nor is what “the markets” want the same as what free-market economics require.
  • Lesson 3: The economy is more important than the budget.
  • During the recession of 1981-82, Democratic politicians demanded that a Republican president set a balanced budget as his top priority. Ronald Reagan disregarded this advice. He held firm to his tax cuts: once the economy returned to prosperity, there would be time then to deal with the deficit. Today, the positions are reversed.
  • eading voices in the Republican Party have convinced themselves that the country is on the verge of hyperinflation — a Weimar moment, says Glenn Beck. But if fiscal stimulus leads to socialism, and quantitative easing leads to Nazism, what on earth are we supposed to do? Cut the budget? But we won’t do that either! On Sean Hannity’s radio show, the Republican House leader John Boehner announced just before the election that one of his first priorities would be the repeal of the Obama Medicare cuts.
  • Lesson 4: Even from a conservative point of view, the welfare state is not all bad.
  • Social Security, unemployment insurance and other benefits were designed as anti-Depression defenses, “automatic stabilizers” as economists called them.
  • Those who denounce unemployment insurance as an invitation to idleness in an economy where there are at least five job seekers for every available job are not just hardening their hearts against distress. They are rejecting the teachings of Milton Friedman, who emphasized the value of automatic stabilizers fully as much as John Maynard Keynes ever did.
  • Lesson 5: Listen to the people — but beware of populism.
  • Non-Tea Party Americans may marvel that any group can think of itself as egalitarian when its main political goals are to cut off government assistance to the poorest and reduce taxes for the richest.
  • But American populism has almost always concentrated its anger against the educated rather than the wealthy. So much so that you might describe contemporary American politics as a class struggle between those with more education than money against those with more money than education
  • The U.S. political system is not a parliamentary system. Power is usually divided. The system is sustained by habits of cooperation, accepted limits on the use of power, implicit restraints on the use of rhetoric.
  •  
    "Republicans lost the presidency in 2008 in large part because of the worst economic crisis since World War II. Republicans have now regained the House of Representatives for the same reason. In the interval, Republicans ferociously attacked the Obama administration's economic remedies, and there certainly was a lot to attack. But the impulse to attack, it must be recognized, was based on more than ideology; it also served important psychological imperatives." By David Frum at The New York Times Idea Lab on November 12, 2010.
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