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Monthly Archives

Entries from April 1, 2009 - April 30, 2009

3:18AM

The Chinese stimulus package: Is it starting to work?

FRONT PAGE: "China Turns A Corner As Spending Takes Hold," by Andrew Batson, Wall Street Journal, 11-12 April 2009.

China's $585B is second only to the U.S.'s roughly $800B.

In China, demand is picking up in key places as a result of the splurge: oil and steel. Banks are lending and stocks are rising.

This is crucial stuff:

The signs augur well for the global economy. China has been one of the world's most voracious consumers of raw materials. While its aggressive spending plan reflects the power of its state-dominated economy, there are signs that its thrifty consumers are starting to spend more.

"State-dominated" is a bit misleading. I would go with "State-directed," but China's government directly controls only about 30% of the GDP--not that much higher than the U.S. thanks to our massive USG spending habit.

But the big thing here: optimism is spreading across the Chinese economy as indicated by these numbers.

3:14AM

Breaker! Breaker! Let's get this convoy on the seas!

OPINION: "Convoys Are an Answer To Piracy," by Peter D. Zimmerman, Wall Street Journal, 14 April 2009.

WORLD NEWS: "Gates Says Somalia Government Is Key to Problem," by Peter Spiegel, Wall Street Journal, 14 April 2009.

Interesting notion, but the reality remains that, even as these heightened levels of piracy, only one out of every 100 ships are coming under attack. Trying to get all the ship lines and shippers and exporters and importers to bundle up their traffic in order to prevent that tiny loss is just a business non-starter.

Zimmerman makes this point in the piece, but says such economic logic--while powerful--doesn't deal with the threat to seamen.

But on this point, I side with Gates: elaborate efforts at sea won't erase the reality on land.

Absent that tougher call eventually being made, I foresee private security on ships, heavily armed.

3:12AM

More evidence of why Pakistan should learn plenty from its most recent truce with the Taliban

FRONT PAGE: "Pakistan Deal Gives New Clout To Taliban," by Zahid Hussain and Matthew Rosenberg, Wall Street Journal, 14 April 2009.

The number of militant Taliban in the Swat valley has apparently doubled in the weeks leading up to the truce and the weeks following. There were 3-4,000 there at the end of 2008 and there's 6-8,000 now.

This deal of granting religious isolation or enclave (Sharia) clearly isn't working as intended. Instead of creating a live-and-let-live separatism, it is fueling an insurgency haven.

As one U.S. official put it, "This is a rest stop for the Taliban, it's nothing more."

Virtually every deal Islamabad has concluded with locals in northwest territories has collapsed within months. This one looks to be going the same route.

3:11AM

China starts its own early version of dollar diplomacy in the region

WORLD NEWS: "China Pledges Funds to Aid Its Neighbors," by Ian Johnson, Wall Street Journal, 13 April 2009.

$10B infrastructure fund (guess who gets to build?) and $15B in credits and loans (some strings regarding source, no doubt), but this is how China starts working the locals in the manner of a wealthy great power.

To me, this is reminiscent of TR and Taft trying out similar influence-enhancing (aka, soft power) in Latin America when we were the new, rising great power of the age.

You want a sphere of influence? Be prepared to pay for it.

3:08AM

Too cute from WSJ's Stephens

OPINION: "Hiroshima, 2.0," by Bret Stephens, Wall Street Journal, 14 April 2009.

A wonderfully regurgitating piece by Stephens that leverages the previous front-page piece days earlier about Russian and Chinese cyber-spying on our electrical grids.

What I love, other than the other usual fear-mongering tricks (China is contemplating "killer apps"!!! I reply, Guess what? Our Pentagon R&D spending is equal to their entire defense spending!!!!), we get this little cute bit at the end:

... here's a modest suggestion: Gently alert our non-NATO "partners" that we might be in their electricity grids, too.

Again, there's no spying on us that isn't returned in spades. I have no doubt the Russians and Chinese are more than aware of our actions, thus no need to poke provocatively. They just don't go to the effort of freak-out reports in the press.

Why? Frankly, the way we love to brag on TV when we use our own capabilities in wars is more than enough to motivate their bureaucracies into action. Remember that: they plan and test and probe, but we've got a military that actually does this sort of stuff on a regular basis. Guess which side has their act together to a better degree? The theorists or the regular practitioners?

When you get this sort of one-sided coverage (They spy & we are only spied upon. We are supremely vulnerable but they have no vulnerability whatsoever), it's designed to scare you into bigger defense/homeland security packages.

Meanwhile, NSA is embroiled in yet another case of improper spying on Americans. In this instance, we are assured that the transgressions are minor and small in number.

Let me propose this to you: If America is so willing to spy on its own people, how much do you imagine we spy on our enemies?

1:23PM

Links to the latest Esquire piece

3:44AM

The drum beat continues on the USG's cyber-security review

FRONT PAGE: "Electricity Grid in U.S. Penetrated By Spies," by Siobhan Gorman, Wall Street Journal, 8 April 2009.

As usual, the prime culprits are the Chinese and Russians. When you're trying to scare the hell out of Congress, always pick stock villains.

Homeland Security is gearing itself up for some budget push all right, and so we are treated to a series of "revelations" in which outside nefarious actors are revealed to be plotting against us in all manner of ways.

Naturally, these reports never mention how much we engage in the very same activity vis-à-vis such states. When we do it, we don't call it "hacking" or "spying," but "targeting." There is no confusion or hesitancy on our side with regard to the desired utility: pick any country that you can envision America going to war with and I guarantee you that we have detailed plans to drop electrical grids and all manner of network infrastructure in that country at the start of open hostilities--or earlier.

When we make such efforts, we're not being provocative, but prudent. I mean, do you want a military that would suddenly have to gin up these plans and capabilities at the last moment?

But of course, if weaker powers engage in such stuff, then it's naturally provocative in its devious asymmetry.

But again, where is the asymmetry? We plan to do exactly the same to them at exactly the same points. But since they're weaker militarily, and we're so high-tech, we rightly assume that our capabilities will be more degraded than theirs. Fair enough, but along those lines of logic, it's hard to expect countries like Russia and China not to try and cut down our military supremacy, creating as many mutually-assured-destruction-like scenarios as possible. That's how the weak always seek to dissuade the powerful.

So be amazed if you must. Be shocked! Shocked I tell you!

And if you must run these scenarios through your head, please screen out all the ancillary economic nonsense and view them through the purity of the realists' logic--war completely isolated from the real world.

Does any of this argument reduce our incentives for improving security in such networks? Hell no. We should increase their resiliency for all manner of reasons, especially with regard to attacks by non-state actors who want all manner of economic distress to result (and who are essentially safe from any damaging American counter-strike).

But spare me the revelations and the hypocrisy of this sort of fear mongering. The Chinese and the Russians don't do anything to our nets that we haven't done to theirs. Our real fear here is their ability to veto our military operations abroad. But guess what? China's two trillion in dollar reserves does that a lot better (again with the economic nonsense!)

Whatever myths we want to retain from the post-Cold War/pre-9/11 window, the one we can't hold onto is that we need a national security establishment that can exert instant dominance over any opponent in the world despite the collective resistance of the world's rising great powers. We simply cannot take on all comers at once--live with it.

The dream of primacy in the early 1990s was as short-lived and fantastic as was the one we briefly entertained after WWII. This is hardly some great loss in strategic security. It is sheer folly for us to believe that we could trigger this hyper-interdependency of modern globalization and yet--somehow--hold intact our military supremacy in all its facets. Iraq and Afghanistan show clearly that we can start wars on our own, but that we cannot finish them.

Being reminded of such things regarding potential high-end scenarios with great powers like Russia and China is hardly some revelation. It simply reflects our interdependent, networked world.

Again, live with it. And stop pretending that only our enemies plot such nefarious attacks.

3:40AM

A new low in the definition of "chaos"

COMMENTARY: "Somebody Take Control, Please: We don't need a hero, but a few leaders would help," by David Rothkopf, Washington Post National Weekly Edition, 6-12 April 2009.

Rothkopf is a pretty smart guy, but he dips into hyperbole with a casualness that I find disconcerting.

Here's a beaut:

We do need strong leadership. The world is in chaos. There are riots from Greece to China. Iceland has collapsed, and Mexico teeters on the edge. Pakistan is broke, melting down and awash in nukes.

My, our standards for global chaos certainly have been lowered: some riots, a banking-sector collapse in a tiny Western economy, the higher-than-usual drug violence in Mexico, and Pakistan "awash" in nukes (I mean, any jerk can buy one today on any street corner in Lahore).

After this ritualistic fear-mongering, we're treated to a snarky review of Obama's leadership style (He went on Leno!!!! Just like Lindsay Lohan!!!) and then some platitudes about how the U.S. public tends to be such crappy followers.

The underlying logic: the only leadership that can save us is political leadership--a truly unexpected notion from a life-long Washington insider.

3:35AM

A good sign: further expansion of security ties/cooperation with India

WORLD NEWS: "U.S. Looks to Expand India Ties," by Paul Beckett, Wall Street Journal, 9 April 2009.

We were right to raise the Kashmir issue as part of our new regional approach. Pretending it's a private affair between Pakistan and India is a joke; it drives many of Pakistan's choices vis-à-vis both the Federally Administered Tribal Areas and Afghanistan--the enduring fear about a lack of "strategic depth" against India.

Conversely, we shouldn't give in to Pakistani fears about growing Indian involvement in Afghanistan: when you can't control your own territory, then your fears of "encircling strategies" are self-fulfilling.

I have said it before and will say it going forward: when Pakistani push comes to Indian shove, we should side with the Indians damn near every time. In this century, India will simply matter one helluva lot more as a strategic ally.

3:32AM

Fly-over states are more conservative; they're also--surprisingly--more tolerant

OP-ED: "Iowa's Family Values: Middle of the nation, ahead of the curve," by Steven W. Thrasher, New York Times, 9 April 2009.

Cool piece by an Iowan who now lives in NYC: somehow gays can now get married in stuffy old Iowa (which jump-started Obama to the presidency, BTW), while progressive New York and California can't manage that feat.

Having lived on the East Coast for about half my life (the rest being in Wisconsin and Indiana), I would readily admit that middle America is more conservative, but it's also often more tolerant than the high-tension coasts. Part of it is real/perceived numbers--as in, whatever the minority, there's more of them on the coasts, so questions of diversity seem more threatening in terms of actual power sharing. In fly-over states, the numbers tend to be smaller, or at least perceived to be smaller, and because the local culture is more confidently established (less "everything goes" and more "this is how we do things around here"), there's often less aggregate fear even as there's more day-to-day prejudice.

My daughter's high school is a great example: got a thriving gay and lesbian alliance group, but there's more day-to-day displays of overt homophobia than we found out East. Overall, though, there's no great sense of intolerance. If anything, the homophobes are the isolated ones--the prototypical hicks indicative of Indiana's status as birthplace of the KKK.

So a bit odd to realize: this place seems to handle the natural tensions better than the coasts.

2:53AM

Worth a try, but don't imagine the nationalism goes away with contact

EDITORIAL: "Iran: The problem of Persian pride; Iran is unlikely to respond to overtures from Barack Obama, but it's worth a try," The Economist, 21 March 2009.

The mag here almost makes too much of the election: either Iranians return to the fold of nations or remain in angry isolation.

Here's my bet: they decide to return but they're going to keep their nukes and all they imply. In fact, it's logical to assume that getting the nuke capacity enables the return.

Remember: we couldn't pursue détente with the Sovs until we recognized their "accomplishments" and showed respect for their regime, the underlying notion being both sides would stop trying to go after the others' regimes and would transmute that direct competition into an indirect one outside of Europe--the Third World. That "cease-fire" of sorts allowed the connectivity to grow and eventually ensnare the Sov bloc into reform efforts it could not survive.

But you couldn't get from that original A to the desired Z unless you gave the Sovs the confidence that their nukes meant their regime couldn't be directly targeted for change.

The same will be true for Iran, I think. So assuming an Ahmadinejad loss in June means the end of the nuke program is incorrect, in my opinion. You may see a papering deal, but I fully expect Iran to want the world to know it can defend itself with nukes--just like Iran and Pakistan and India and China and North Korea and so on.

You have to remember: Iran has this long-history-of-persecution-by-foreigners perspective that rivals China's, hence the similarity in dynamics to Nixon's opening to China.

It simply wants to be recognized as belonging to the big-boys club and all that entails. Since that goal cannot be prevented, in my mind, then we have to prepare ourselves for what that attainment offers us in new opportunities to ultimately subvert the regime.

Yes, the impatient will want short-cuts. They will find the journey too fraught with uncertainty.

But we have done this before and done it well. Iran is not unique as a revolutionary regime. The religious quotient is irrelevant. It's just what comes next in globalization's advance.

2:51AM

Islam is winning the only battle that counts

WORLD: "Islam's Soft Revolution: Across the Muslim world, a new generation of activists, bloggers and preachers is discovering ways to synthesize Islam and modernity," by Robin Wright, Time, 30 March 2009.

Robin Wright is definitely a glass-half-full type on change within Islam, and yet she's not far off from the view of an Olivier Roy, my favorite expert.

Basic diagnosis:

The new Muslim activists, who take on diverse causes from one country to another, have emerged in reaction to the Sept. 11 attacks and all that has happened since.

Trust me, it's far more the "all that has happened since" than just 9/11 that's triggered the response.

A Brookings' expert, Navtej Dhillon:

There's a generation driving this soft revolution--like the baby boomers in the U.S.--who are defined by a common experience.

Instead of being defined primarily by globalization's rising connectivity and all the opportunities afforded, Dhillon says this cohort has been trapped in "post-9/11 politics."

More from the article:

Disillusioned with extremists who can destroy but who fail to construct alternatives that improve daily life, members of the post-9/11 generation are increasingly relying on Islamic values rather than on a religion-based ideology to advance their aims. And importantly, the soft revolution has generated a new self-confidence among Muslims and a sense that the answers to their problems lie within their own faith and community rather than in the outside world. The revolution is about reform in a conservative package.

Very realistic, in my mind.

The demand here is for identity retention amidst globalization's churning advance and destabilizing embrace of traditional societies. You have to meet that demand for the connectivity ultimately to stabilize.

Yes, it's good these reformists seek to conserve Islam. The blame-the-West stuff will always be there, especially if we keep the fights close-in rather than just lie back and let the extremists bring it to us, but since the crisis is within Islam and especially within the Arab world and its culture, it's better to keep the violence where it belongs, forcing the change that must happen. Suffering the increased radicalization is worth it, because it focuses the locals' sense of what the true alternatives are. Absent that pain, the Middle East would keep on being the Middle East forever.

And that simply won't work in this world.

2:50AM

Harlem Globetrotters hold on in Malaysia

WORLD NEWS: "A Tighter Grip in Malaysia: In Slowing Economy, Pressure Rises on Foes of Incoming Premier," by James Hookway, , 24 March 2009.

For a while there, it looked like the UMNO (United Malays National Org) would release its grip on Malaysian politics, a grip maintained for a solid five decades post-revolution.

But now it seems clear that UMNO will keep its winning streak intact, as the opp party continues to suffer the usual repression and "legal" attacks.

The global downturn probably delays Malaysia's movement into true pluralism for some time, or maybe it eventually triggers it.

We shall see.

2:48AM

Terrorism remains a demand function--best treated at the source

INTERNATIONAL: "Saudis Retool To Root Out Terrorist Risk: Aiming to Change Minds With Aid and Retraining," by Robert F. Worth, New York Times, 22 March 2009.

I like the fact that Iraq triggered all this home-grown terrorism from Saudi Arabia to actually return home, triggering all sorts of wake-up calls in the subsequent years (described here):

Those deaths forced a decisive shift here. Many Saudis had refused to recognize the country's growing reputation as an incubator of terrorism, even after the international outcry that followed the terrorist acts of Sept. 11, 2001.

Since then, much has changed.

Yes, the efforts at c-terrorism at home still drives many abroad to Yemen, Afghanistan, etc., but the local "ideological apparatus" is being weakened greatly.

The softer efforts are often derided in the West, but it's hard to see how the Kingdom could augment the harsh stuff much, as it's always been harsh. As one leader of the effort puts it, "We can't let [the terrorist recruiters] be the good guys."

Point being, Saudi Arabia learns to deal with terrorism as a demand problem and not just as a supply issue. The popular anger is a demand for something better: you either meet it or suppress it. Only one path generates relief.

6:20PM

The Great Powers Reading Group ends

Just a reminder to get in on the last installment of the Great Powers reading group if you haven't already.

A big thank you to historyguy99 for his excellent work shepherding this project for the last 10 weeks. We really appreciate his investment in spreading Tom's message!

6:15PM

Final Hugh stint for GP

Somehow I missed linking Tom's final 2-hour appearance on Hugh Hewitt's show:

Transcript

1st hour audio

2nd hour audio

12:22PM

And again

10:12AM

Tom in the EB

Word has it Tom's latest piece for Esquire, Inside the War Against Robert Gates made the Early Bird today (military access only).

3:48AM

Like Obama's move on Cuba

ARTICLE: Obama Lifts Broad Set Of Sanctions Against Cuba, By Michael D. Shear and Cecilia Kang, Washington Post, April 14, 2009; Page A01

You don't want to lift the entire trade embargo. Save that for the killer blow at the right time--not now while Fidel is still alive.

Instead, a nice choice here and good timing:

Obama left in place the broad trade embargo imposed on Cuba in 1962. But just days before leaving to attend a summit with the leaders of South and Central America, he reversed restrictions that barred U.S. citizens from visiting their Cuban relatives more than once every three years and lifted limits on the amount of money and goods Cuban Americans can send back to their families.

He also cleared away virtually all U.S. regulations that had stopped American companies from attempting to bring their high-tech services and information to the island.

The last bit I like a lot. Feed Cuba the modern connectivity (high-tech services) and the age-old kind (family bonds). Let the people get a real taste for both.

3:28AM

It was all a pack of lies! I tell you! Or maybe just the usual overbuild

OPINION: "The Socialist Solution to the Crisis," by Poul Nyrup Rasmussen, Wall Street Journal, 2 April 2009.

OPINION: "Is This the End of Capitalism?" by Daniel Henninger, Wall Street Journal, 2 April 2009.

The first piece is a scream: "Thatcherism and Reaganism have failed on a momentous scale."

Yeah, right, after working for a quarter century and sending the world on its biggest global economic expansion in history.

So deregulation goes too far and now we must reregulate some. That means everything that came before was a lie?

Please, that's beyond sophomoric in logic.

This boom ended like most booms: an overbuilding in the housing/office space sector. Hardly the end of capitalism.

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