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Entries from April 1, 2009 - April 30, 2009

3:39AM

Talk about fueling both ends of the war

FRONT PAGE: "U.S. Stymied as Guns Flow to Mexican Cartels," by James C. McKinley Jr., New York Times, 15 April 2009.

We supply the demand for drugs and we meet the demand for guns from the drug cartels.

When the border states bitch about being on the front lines, we have to remember that they're also the essential arms merchants in this conflict. Houston alone has 1,500 (!) licensed gun dealers that are "easily accessible to Mexico."

3:37AM

Nice Kaplan description of the other Pakistan

FEATURE: "Pakistan's Fatal Shore," by Robert D. Kaplan, The Atlantic, May 2009.

Gwadar, the strategic port, either serves as gateway to Central Asia's riches or simply as another node in Pakistan's looming civil war, says Kaplan.

It's another one of those thoughtful pieces that leads one to believe that Pakistan simply cannot survive in a globalized world. It is a fake state slated for conflict and then dismemberment and resurrection in some new, different form. Kaplan explicitly raises the specter of a "Yugoslavia-in-the-making."

As always, in this part of the world, Pakistan's resource riches are concentrated in some obscure corner occupied--restively--by a tiny fraction of its population: here, the Baluch that make up less than 4 percent.

China's dreams of a secure port are illusory, so sayeth the rebellious Baluch. Beijing has no idea of the mess it's getting into.

The article is essentially a travelogue, but Kaplan is best in this form, interspersing the reportage with bits of strategic analysis.

The call-out text warning from a Baluchi leader:

If we keep fighting, we will ignite an intifada like the Palestinians . . . Pakistan is not eternal. It is not likely to last.

In a nutshell, this is my core reason for saying our entire approach to AFPAK should favor Indian interests one helluva lot more than Pakistani interests.

India is real, Pakistan is not.

3:34AM

Colombia as the model for Afghanistan?

COMMENTARY: "Which Way in Afghanistan? Ask Colombia: Lessons learned in suppressing the guerrillas could be applied to defeating the Taliban," by Scott Wilson, Washington Post National Weekly Edition, 13-19 April 2009.

Wilson, the author, has covered both Iraq and Colombia, having lived in the latter from 2000 to 2004. He believes Colombia offers a lot more lessons for future operations in Afghanistan than our experiences in Iraq.

The big similarities: insurgents distant from capital, the terrain, the drug connection, the sanctuary offered by neighboring states, and the weak central government.

Key lessons suggested:

1. surging U.S. troops is less useful than surging trainers for the local military (how Nagle-ish)
2. we should focus on government capacity building more than reducing poppy production
3. efforts to seal borders don't work and divert personnel better used elsewhere
4. this will take years to fix.

Uribe, the Colombian president, reduced the insurgency pool best by luring the less faithful away with cash and job training. Another key thing he did was end the paramilitaries and their negative impact.

In short, Uribe built a state using U.S. money, sometimes ruthlessly and sometimes with great grace. But how he expanded the state's purview was key: he offered the insurgents a better life.

3:28AM

Israel's beefed-up Leviathan capacity after Lebanon '06 bought them a non-fight from Hamas in 2009

MIDDLE EAST: "Lopsided Battle: Israel anticipated a stronger fight from Hamas in the Gaza war, the military says," by Howard Schneider, Washington Post National Weekly Edition, 13-19 April 2009.

We are told that Israel's turn to small-wars thinking in previous years accounted for its poor performance in Lebanon in 2006, as Hizbollah proved fairly potent. So we are encouraged to learn this lesson: SysAdmin stuff ruins your Leviathan.

So Israel retooled and came into the Gaza with guns blazing, routinely bulldozing houses just to be sure no threats remained. In short, focus this time was totally on making sure every Israeli soldier got home, so little care for the locals. Indeed, the purpose of the visit was to inflict maximum damage--a war on the people in addition to Hamas.

So what did Israel get for its rejection of the COIN/SysAdmin/small wars strategy?

Hamas simply refused to fight:

Interviews with Israeli officers and soldiers who took part in the assault, along with a review of IDF information released during the war, indicate that Hamas fights did not significantly challenge the assault and that gunmen who did used tactics and weapons that were largely ineffective.

In short, Hamas wasted some fodder but kept back its talent and best weapons, like Iranian-supplied antitank weapons.

So Hamas takes its beating , and Gaza becomes that much more damaged. This is the Israeli version of the Powell Doctrine: come in heavy, destroy all, focus on low casualties (for yourself) and don't spend a minute worrying about how many locals you kill or what enmity you leave behind.

I see good things coming out of this effort, all right. I see a Gaza with more opportunity for its people.

It make take an entire village to raise a child, but it only takes one tank to raze an entire village.

Yes, yes, we should take many lessons from Israel's improved Leviathan approach.

3:28AM

The Obama moves at OAS

FRONT PAGE: "Obama Declares U.S. Will Pursue Thaw With Cuba: At Hemispheric Meeting; Sees 'New Direction'--Clinton Welcomes Castro Remarks," by Sheryl Gay Stolberg and Alexei Barrionuevo, New York Times, 18 April 2009.

NEWS ANALYSIS: "Clinton Impresses Foreign Audiences By Saying U.S. Policies Have Failed: Signs that a break from Bush doctrines may have an immediate effect," by Mark Landler, New York Times, 18 April 2009.

From a guy who wrote a 12-step recovery plan for America's foreign policy following Bush, not much to complain about here.

What I like best? America has returned to being unpredictable, meaning we're out of the business of letting others determine our foreign policy through their actions. Bush had that feeling in his first term, but his second was disastrously reactive: we were Pavlov's dog.

Now we're back to normal.

2:51AM

Seven fat years, Joseph told Pharoah, to be followed by seven lean years

BUSINESS: "Defence companies: In the line of fire; Why America's defence industry is in for some lean years," The Economist, 21 March 2009.

This article nicely presaged Gates' recent announcement of a reshaping of the Pentagon's long-term acquisition plans.

Gates prepped this path brilliantly over the past many months.

2:48AM

Decision 2009

MIDDLE EAST AND AFRICA: "Iran's presidential choice: It could make a big difference; The coming election in Iran could change the region drastically, for better or worse," The Economist, 21 March 2009.

Good summary of possibilities.

Funny bit up front: Iran sends up satellite and Ahmadinejad crows that Iran must now be considered a "superpower." Joke rocketing around Iranian phones by text is that the first finding from the new satellite is that the "earth is round!"

Man, does that ever remind me of unofficial Soviet humor in the 1980s.

Key analysis: Iran has gone about as far as it can in asserting regional influence by inflaming situations. To go farther is to change tactics, because continuing down this path, armed with a nuclear capacity, will naturally trigger a serious anti-Iranian Sunni front.

So the election will reflect whether Iran really does have ambition to influence beyond its borders, or is this all a big drill simply for the hardliners to retain power at home.

Despite all his bellowing at targets abroad, Ahmadinejad has really been about one, very Bushian thing: expanding the power of the presidency, historically weak in Iran.

For now, Ahmadinejad hasn't declared, and the reformist field has narrowed to two.

Like the Economist, which brings up this scenario only at the end of the article, I await the possibility of the Supreme Leader, sensing Ahmadinejad may not win, switching support to the polished, pragmatic conservative that it Tehran's current mayor, Muhammad Qalibaf.

Again, I see the reform logically appearing in conservative garb--just like Gorby once did.

2:46AM

The embryonic rule set for an Asian Union

ASIA: "Hong Kong and Macau: No politics, please; Macau sails through a test Hong Kong flunked in 2003," The Economist, 21 March 2009.

Just interesting to watch how this process unfolds: the various "tests" that the old colonies go through as they negotiate deeper economic integration with China while seeking to maintain political differences. Macau, being more biz-oriented, bends more readily than Hong Kong, a more politicized society. Hong Kong looks at Macau and fears that it sees a more repressive future, and so it fights back against that trend, creating friction with Macau.

But this is useful stuff, especially in terms of teaching Beijing that every "child" is different.

If China someday hopes to anchor an Asian Union, the accommodations required will be vast. Better for China to learn this reality within its perceived immediate family before aspiring to anything more.

That's where I find this China-is-ready-to-lead-the-world stuff fantastically premature: it can barely control its nearest relations at this point.

3:13PM

The Obama "doctrine"--sort of

In answer to a question about how he might describe an Obama doctrine, the President offered this response (as presented first on Time.com (HT to Jason Sattler):

[T]here are a couple of principles that I've tried to apply across the board: Number one, that the United States remains the most powerful, wealthiest nation on Earth, but we're only one nation, and that the problems that we confront, whether it's drug cartels, climate change, terrorism, you name it, can't be solved just by one country. And I think if you start with that approach, then you are inclined to listen and not just talk.

And so in all these meetings what I've said is, we have some very clear ideas in terms of where the international community should be moving; we have some very specific national interests, starting with safety and security that we have to attend to; but we recognize that other countries have good ideas, too, and we want to hear them. And the fact that a good idea comes from a small country like a Costa Rica should not somehow diminish the fact that it's a good idea. I think people appreciate that. So that's number one.

Number two, I think that -- I feel very strongly that when we are at our best, the United States represents a set of universal values and ideals -- the idea of democratic practices, the idea of freedom of speech and religion, the idea of a civil society where people are free to pursue their dreams and not be imposed upon constantly by their government. So we've got a set of ideas that I think have broad applicability. But what I also believe is that other countries have different cultures, different perspectives, and are coming out of different histories, and that we do our best to promote our ideals and our values by our example.

And so if we are practicing what we preach and if we occasionally confess to having strayed from our values and our ideals, that strengthens our hand; that allows us to speak with greater moral force and clarity around these issues.

And again, I think people around the world appreciate that we're not suggesting we are holding ourselves to one set of standards and we're going to hold you to another set of standards; that we're not simply going to lecture you, but we're rather going to show through how we operate the benefits of these values and ideals.

And the -- as a consequence of listening, believing that there aren't junior partners and senior partners in the international stage, I don't think that we suddenly transform every foreign policy item that's on the agenda. I know that in each of these meetings the question has been, well, did you get something specific? What happened here? What happened there?

Countries are going to have interests, and changes in foreign policy approaches by my administration aren't suddenly going to make all those interests that may diverge from ours disappear. What it does mean, though, is, at the margins, they are more likely to want to cooperate than not cooperate. It means that where there is resistance to a particular set of policies that we're pursuing, that resistance may turn out just to be based on old preconceptions or ideological dogmas that, when they're cleared away, it turns out that we can actually solve a problem.

And so we're still going to have very tough negotiations on a whole host of issues. In Europe, people believe in our plan for Afghanistan, but their politics are still such that it's hard for leaders to want to send more troops into Afghanistan. That's not going to change because I'm popular in Europe or leaders think that I've been respectful towards them. On the other hand, by having established those better relations, it means that among the population there's more confidence that working with the United States is beneficial, and they are going to try to do more than they might otherwise have done.

I think this is a great summary of how Obama has changed the tone and execution of U.S. foreign policy.

But I don't think it comes anywhere close to resembling a doctrine. The unwinding of the financial crisis may yet produce one. Our renewed effort in AFPAK may produce one.

But for now, what we have is a change in tactics but not strategy--and that's enough to be grateful for, especially when you contrast it to Bush-Cheney or what McCain was likely to do.

12:12PM

Tom around the web

3:32AM

Cool idea on Cuba: Tear down our wall at Gitmo!

CUBA: "Tear Down This Wall: Instead of just closing the Guantanamo Bay detention center, how about if we throw the place wide open?" by Patrick Symmes, Newsweek, 20 April 2009.

Tear down the 17-mile wall and make Gitmo an American free-trade zone right inside Cuba! Let U.S. companies come there and employ Cuban labor.

In short, invade the place economically and aggressively with connectivity.

Frickin' brilliant.

Turn the spigot open and just watch the Castro bros freak out.

3:26AM

China playing this crisis awfully well on the economic front

MONEY: "China buys less U.S. debt as reserve growth slows: Foreign firms, natural resources also sought," by David J. Lynch, USA Today, 16 April 2009.

Think about it: raising the long-term issue of the dollar as global reserve currency (the fanciful proposal of SDRs as replacement), the bottom-feeding on natural resources and foreign firms (get' em while they're half priced), the announced moves on healthcare (a clinic for every village) and human rights (decidedly economic in their focus), the stimulus package (with its ancillary bold plan to dominate the future electric car industry), and the intended consequence of buying less U.S. debt (as a subtle prod to the U.S. on policy).

All of this is fairly sensible, calculating, and clever. It speaks to a long-term horizon.

All in all, other than the continued naval shenanigans, I would say that China has played this global financial crisis with real grace.

3:25AM

Yea! We got the Americans!

CHART: "Ships held by Somali pirates," by Dave Merrill and Julie Snyder, USA Today, 16 April 2009.

WORLD NEWS: "U.S. Unveils Plan to Halt Sea Attacks," by WSJ staff, Wall Street Journal, 16 April 2009.

While we celebrate our awesome takedown of three teenagers in a rubber raft, "at least 15 ships and about 300 crewmembers are being held by pirates off the coast of Somalia."

111 pirate attacks for all of last year, and 79 so far this year.

But you have to love all this breathless cable news coverage of Alabama crew-member returns.

USA! USA! USA!

This is the Powell Doctrine at its finest.

Some upgrade will be required eventually, something bigger than Obama's recently offered plan. I just don't think that freezing pirate assets will be enough.

3:12AM

The Gates Road Show

SPEECH: Air War College, By Robert M. Gates, Maxwell-Gunter Air Force Base, Montgomery, AL, April 15, 2009

SPEECH: Army War College, By Robert M. Gates, Carlisle, PA, April 16, 2009

SPEECH: Naval War College, By Robert M. Gates, Newport, RI, April 17, 2009

Highlights from Gates' recent series of speeches to military colleges, giving you a sense of the themes he's pushing. I am, by and large, in strong agreement with all of them.

MARITIME (Navy War College)
We must examine our blue-water fleet and the overall strategy behind the kinds of ships we are buying. The need to show presence and project power from a piece of sovereign territory called a United States Navy ship will never go away. But we cannot allow more ships to go the way of the DDG-1000 - where since its inception the projected buy has dwindled from 32 to three as costs per ship have more than doubled...

As much as the U.S. Navy has shrunk since the end of the Cold War, in terms of tonnage, its battle fleet, by one estimate, is still larger than the next 13 navies combined - and 11 of those 13 navies are U.S. allies or partners. In terms of capabilities, the over-match is even greater. No country in the rest of the world has anything close to the reach and firepower to match a carrier strike group. And the United States has and will maintain eleven until at least 2040...

Potential adversaries are well-aware of this fact, which is why, despite significant naval modernization programs underway in some countries, no one intends to bankrupt themselves by challenging the U.S. to a shipbuilding competition akin to the Dreadnought arms race prior to World War I. Instead, we've seen their investments in weapons geared to neutralize our advantages - to deny the U.S. military freedom of movement and action while potentially threatening our primary means of projecting power: our bases, sea and air assets, and the networks that support them.

This is a particular concern with aircraft carriers and other large, multi-billion dollar blue-water surface combatants - where the loss of even one ship would be a national catastrophe. We know other nations are working on ways to thwart the reach and striking power of the U.S. battle fleet - whether by producing stealthy submarines in quantity or developing anti-ship missiles with increasing range and accuracy. We ignore these developments at our peril.

The Royal Navy's greatest defeat in World War II - the sinking of the capital ships H.M.S. Repulse and the brand new Prince of Wales by Japanese aircraft just days after Pearl Harbor - was due in part to a command with little appreciation for air power, and in particular the threat posed by a single, air-delivered torpedo.

I have also directed the QDR team to be realistic about the scenarios where direct U.S. military action would be needed - so we can better gauge our requirements. One of those that will be examined closely is the need for a new capability to get large numbers of troops from ship to shore - in other words, the capability provided by the Marine Expeditionary Fighting Vehicle. No doubt, it was a real strategic asset during the first Gulf War to have a flotilla of Marines waiting off Kuwait City - forcing Saddam's army to keep one eye on the Saudi border, and one eye on the coast. But we have to take a hard look at where it would be necessary or sensible to launch another major amphibious action again. In the 21st century, how much amphibious capability do we need?

GROUND MODERIZATION (Army War College)
Parts of the Army's Future Combat Systems program have already demonstrated their adaptability and relevance. For example, the connectivity of the Warfighter Information Network will dramatically increase the agility and situational awareness of the Army's combat formations. And we will accelerate its development and field it, along with proven FCS spin-off capabilities, across the entire Army. But the FCS vehicle program was, despite some adjustments, designed using the same basic assumptions as when FCS was first designed nine years ago. The premise behind the design of these vehicles was that lower weight, greater fuel efficiency, and, above all, near-total situational awareness, would compensate for less heavy armor - a premise that I believe was belied by the close-quarters combat, urban warfare, and increasingly lethal forms of ambush that we've seen in both Iraq and Afghanistan, and are likely to see elsewhere as other adversaries probe for and find ways to turn our strengths against us.

Though the Army currently holds a comfortable margin of dominance over any other conventional ground force, the service clearly must have a new, modernized fleet of combat vehicles to replace the Cold War inventory. But before we spend ten years and $90 billion, and before we send young soldiers downrange, we had better be sure to get it right - or as close to right as we can.

AIR POWER (Air War College)
When examining the issue of air supremacy, we had to ask, what is the right mix of weapons to deal with the span of threats? What are the things that the F-22, and only the F-22, can do - and where would it be required? There is no doubt that the F-22 has unique capabilities that we need - the penetration and defeat of an advanced enemy air defense and fighter fleet. But, the F-22 is, in effect, a niche, silver-bullet solution required for a limited number of scenarios...In assessing the F-22 requirement, we also considered the advanced stealth and superior air-to-ground capabilities provided by the fifth-generation F-35s now being accelerated in this budget, the growing capability and range of unmanned platforms like the Reaper, and other systems in the Air Force and in other services.

I also considered the fact that Russia is probably 6 years away from Initial Operating Capability of a fifth-generation fighter and the Chinese are 10 to 12 years away. By then we will have more than 1,000 fifth-generation fighters in our inventory. In light of all these factors, and on the recommendation of the Air Force secretary and chief of staff, I concluded that 183 - the program of record since 2005 - plus four would be a sufficient number to meet requirements. To be clear, the F-22 program of record as codified in the FY 2005 budget (and all budgets since) will be completed, and not cut as many have said and reported.

A WAR FOOTING (Army War College)
Starting with the roll-out of the Iraq surge, an overriding priority has been getting troops at the front everything they need to fight, to win, and to survive while making sure that they and their families are properly cared for when they come home. During this period, I frequently heard from troops and commanders about what they needed most to complete their mission. I went to the hospitals and talked to the wounded, and I went to the bases and talked to the families. And I read about shortfalls and other problems in the newspapers. Then I raised some of the same issues at the Pentagon - and heard the building's response about what could be done, and how fast. And whether the issue was Walter Reed, fielding MRAPs, or sending more UAVs and ISR assets to theater, I kept running into the fact that the Department of Defense as an institution - which routinely complained that the rest of the government was not at war - was itself not on a war footing, even as young Americans were fighting and dying every day. For me, everything kept coming back to a simple question, "Is this really the best we can do for our kids?"

THE NEXT WAR (Army & Air War College)
We have to be prepared for the wars we are most likely to fight - not just the wars we've traditionally been best suited to fight, or threats we conjure up from potential adversaries who also have limited resources. And as I've said before, even when considering challenges from nation-states with modern militaries, the answer is not necessarily buying more technologically advanced versions of what we built - on land, sea, or in the air - to stop the Soviets during the Cold War.

RECONCILING PARADIGMS (Army War College)
The challenge is balancing support for the warfighter in an era of persistent conflict - where good-enough solutions are needed in months, weeks, or, better yet, tomorrow - with an entirely different dynamic for conventional and strategic programs - which can take many years to achieve the desired level of technology overmatch. Reconciling these two paradigms is one of the most vexing challenges facing our military institutions - but one I am committed to tackle.

3:09AM

Iraqi tension

ARTICLE: Kurds, Arabs Maneuver Ahead of U.N. Report on N. Iraq, By Ernesto Londoño, Washington Post, April 17, 2009

This is a solid overview piece. If the prediction holds (joint admin of Kirkuk and some slices should be given to the KRG), it's hard not to see increased tension (half-a-loaf outcomes almost never satisfy in these conditions).

Iraq heads into an iffy time period this year.

3:34AM

Grand strategy is not about curing the world by the next national election

OPINION: "Will Islam Return Obama's 'Respect'?" by Daniel Henninger, Wall Street Journal, 9 April 2009.

Another sort of whiney op-ed you will read--more times than you'll be able to count--in the pages of the WSJ in coming months and years: if we show Islam respect, then America is surrendering to every single outrage that occurs across its vast expanse of rather retrograde political systems.

Then again, we're likely to have far happier Muslims over here, and that's worth something, in addition to the world's better opinion.

The Christian thing to do is to behave well, expecting nothing in return, letting the shame fall on their side instead of ours. We don't behave well to get results; we behave well because it's right.

And the strategic thing to do is realize that we'll do just fine with whatever comes next in globalization while these states will be forced into wrenching changes across the board (ours will be limited to economics).

There is no great need for any sort of containment: globalization's penetrating embrace of Islamic regions creates all the dynamics of note, with our actions being largely a reactive sideshow.

But in those actions, if we show respect, we pick up no unnecessary friction.

And that's worth something.

3:31AM

Kaplan's three navies

SUNDAY OPINION: "Anarchy on Land Means Piracy at Sea," by Robert D. Kaplan, New York Times, 12 April 2009.

Kaplan has imbibed deeply of the navy's strategic vibes of late, having spend a year at one of its higher education institutions.

His notion of three navies being required (stabilization, surge, blue-seas Leviathan and deterrent to rising naval powers) mirrors exactly the scenario work I did with Hank Gaffney at the Center for Naval Analyses in the early-mid 1990s (find a Jan 93 version here), where we constructed the Department of Navy's futures along three vectors: (Transitioneers' force (presence), Big Stick force (surge for major contingencies) and Cold Worriers' force (blue-water behemoth that scares off competition). The Transitioneers were about managing the world's messy situations (all small), the Big Stick force was all about dealing with regional rogues who popped-up in the "threat trough" created by the demise of the Soviet empire, and the Cold Worriers' force was about prepping for the downstream challenge of a near-peer competitor.

Our choices were pretty solid then (I based the whole thing off the famous Manthorpe Curve which I presented as the only PPT slide in Pentagon's New Map), and it's not surprising to see them rediscovered now by Kaplan, because the environment hasn't really changed that much as far as Navy is concerned (more change for Marines, obviously).

I agree with Kaplan's interpretation of Gates: he's basically stealing a bit from Peter (Cold Worriers or Leviathan force) to pay Paul (Transitioneers or SysAdmin force). When Hank and I did our original calculations, the correlation of forces within the Navy was far more weighted to the Leviathan (the submarine mafia ruled all in the latter years of the Cold War), but today, it's a surface commanders' world inside the Navy, so the tilt clearly shifts to the SysAdmin navy.

My bit with Gaffney, by the way, fits my usual penchant to put most things according to the Waltzian model of system (PNM)/state (BFA)/individual-leaders (GP): The Transitioneers force works the subnational most of all, while the Big Stick surge force is there for state-based wars, and the Cold Worriers force is primarily focused on system-level stability.

As always, Waltz's paradigm works nicely.

3:26AM

More good Cohen on Iran, to include a long-used bit of mine

OP-ED: "Realpolitik For Iran," by Roger Cohen, New York Times, 13 April 2009.

Here's the bit that I found immediately familiar, having put it in print numerous times myself (including my last two books):

Imagine if Roosevelt in 1942 had said to Stalin, sorry, Joe, we don't like your Communist ideology so we're not going to accept your help in crushing the Nazis. I know you're powerful, but we don't deal with evil.

Come to think of it, I've used that bit likewise in too many speeches to count.

Likewise:

That's a rough equivalent on the stupidity scale of what Bush achieved by consigning Iran's theocracy to the axis of evil and failing to probe how the country might have helped in two wars and the wider Middle East when the conciliatory Mohammad Khatami was president.

Seldom in the annals of American diplomacy has moral absolutism trumped realism to such devastating effect. Bush gifted Iran increased power without taking even a peek at how that might serve U.S. objectives.

Thus my frequent condemnation of Bush-Cheney: they forced our troops to fight in both Iraq and Afghanistan under the worst possible strategic conditions: increasingly denuded of allies and increasingly afflicted with regional spoilers.

Cohen's description of a comprehensive bargaining approach echoes my own from the February 2005 Esquire piece, but it's a lot better in its details:

Iran ceases military support for Hamas and Hezbollah; adopts a "Malaysian" approach to Israel (nonrecognition and noninterference); agrees to work for stability in Iraq and Afghanistan; accepts intrusive International Atomic Energy Agency verification of a limited nuclear program for peaceful ends only; promises to fight Qaeda terrorism; commits to improving its human rights record.

The United States commits itself to the Islamic Republic's security and endorses its pivotal regional role; accepts Iran's right to operate a limited enrichment facility with several hundred centrifuges for research purposes; agrees to Iran's acquiring a new nuclear power reactor from the French; promises to back Iran's entry into the World Trade Organization; returns seized Iranian assets; lifts all sanctions; and notes past Iranian statements that it will endorse a two-state solution acceptable to the Palestinians.

Cohen then raises the Nixon-to-Tehran scenario.

When I first made that pitch in 2005 (actually dreaming it up spontaneously in response to an officer's question over dinner election night November 2004, at the Air War College in Alabama), I did so simply to break up the conventional thought patterns I saw America locked into regarding Iran.

While I still see this basic outline making sense, I don't think it could happen now, even in a drawn-out fashion. I think Iran, based on its last two decades of experience in war (versus Sadam, then America's three wars on its left [Iraq twice] and right), is committed to joining the nuclear power (as in, weaponization) club.

So while I advocate some shake-it-up visits by U.S. leadership to Iran in the mode of Nixon-to-China, I don't see that dynamic producing much. Instead, I think the rapprochement will be more in the mode of détente with the USSR in the early 1970s, the trick being there isn't a China card to play with Tehran (I mean, cooperating with UAE on nuclear power just doesn't compare).

So I see this path as being a long tough slog now, with some scary bits as we and the region adjust to Iran's nuclear capability. In short, I think we lost our opportunity to make a comprehensive opening deal with Tehran that will include precluding their reach for the bomb.

That's what Bush-Cheney cost us, in my mind.

More likely scenario to me: Israel attacks Iran before the year is out, and then Tehran races to weaponization with the support of the Muslim world.

Then we start having to deal with Tehran in a different manner. To me, the logical near-term course, no matter who wins in June, is to prepare for that eventuality with calm confidence, hence my call to extend nuclear umbrella protection to Israel and others in the region.

That's the best pre-empt right now.

3:23AM

Obama's leadership so far

THE WELCH WAY: "Obama: A Leadership Report Card," by Jack & Suzy Welch, BusinessWeek, 20 April 2009.

Call-out text says it all:

When it comes to the traits a successful leader absolutely has to have, the President is hitting on all cylinders.

Doesn't mean the Welches--or I--like all his proposals or decisions to date, just that he operates in the position as a much better level than Bush did, meaning we've upgraded during crisis--always a good thing.

What impresses me most:

Every time he speaks, which is often, he's thoughtful, expansive and candid. And he has also worked assiduously to get heard outside of Washington . . . when we heard his NATO press conference last Saturday--explaining America's "exceptionalism"--his lucidity and lack of arrogance rendered any criticism moot. He will surely be the next American President to carry the mantle of The Great Communicator.

Where Obama remains untested: resilience in the face of failure and championing unpopular causes.

Good piece.

3:20AM

Expanding the near-convertibility of the yuan

WORLD NEWS: "Beijing Aims to Expand Foreign Trade in Yuan," by Denis McMahon, Wall Street Journal, 11-12 April 2009.

China continues to expand the ability of both players within its economy and foreign trade partners to use the yuan in a manner closer to a convertible currency.

The latest announcement is that China designated five of its biggest trading cities to take part in this new program of foreign trade in which entire transactions are conducted in yuan instead of dollars or something else.

China's central bank has also set up billions of currency swaps with South Korea and others (so little yuan is held abroad, that China needs to prime the pump).

China is the world's third largest economy, the article points out, but little of its money travels beyond its borders (the essence of unconvertibility being that people outside your country can't hold onto your currency and thus indirectly influence its exchange value by the volume of their usage; real convertibility would be the option to directly trade currencies [my best attempt off the top of my allergy-addled head to describe this--please correct, anybody]).

Some key bits:

The government maintains strict rules that make it difficult for companies to exchange yuan for foreign currencies--and which help authorities maintain control over the yuan's exchange rate.

The new steps will loosen that system but only within careful parameters. The moves could lead to further opening of China's capital markets, creating the need for yuan derivatives and investment options outside of the country. Eventually, the measures could help make the yuan a more important currency globally and reduce the use of the dollar by one of the world's biggest trading nations.

Using the yuan to settle trade deals would help Chinese companies reduce the risks of exchange-rate fluctuations. Many Chinese exporters lost money last year because the dollar's value fell after they signed orders but before they were paid.

The moves, so far, won't impact U.S.-China trade much at all, but rather will be concentrated in trade with regional partners.

Overall, this is a careful but good move. The more China moves in this direction, the more it'll open its economy to forces that will challenge the government to create more balancing mechanisms/markets across the economy, and that's the right direction in terms of expanding economic freedom. So long as few abroad hold any yuan, Beijing can strictly control its value, but as more yuan circulate, that'll get tougher.

Naturally, Hong Kong is expected to lead the way in this experiment.

The next big step, unlikely any time soon after the financial crisis, would be to do the same in investment markets. For now, China finds that prospect too scary even as it'll eventually need to take this step.

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