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Fr. Serra’s Irrational Critics – OpEd

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Politics, laced with emotion, is motivating the anti-Serra crowd. In fact, Father Junípero Serra has become the whipping boy for left-wing, anti-Catholic activists bent on using his life story to beat up on Western Civilization, the United States, and the Catholic Church. Just as bad, the most sweeping and condemnatory generalizations are being made without rebuttal by the media.

Over the weekend there was a staged, and poorly attended, anti-Father Serra event at the Mission San Juan Bautista in California; it is one of the missions founded by the heroic priest. Leaders from the Amah Mutsun Tribal Band and the American Indian Movement blamed Catholic missionaries for the deaths of over 100,000 Native Americans. The event was long on accusations but short on evidence.

To be sure, Native Americans were unjustly treated, but not, in most instances, by the missionaries. It was the Spanish authorities and soldiers who were guilty of wrongdoing, not the priests. To blame Father Serra is itself an injustice: he did more than anyone to stand up for the rights of Indians, winning concessions from recalcitrant officials. Demonizing the one man who fought to secure human rights for Native Americans should be denounced by everyone.

The media are strikingly incurious when it comes to assessing those who claim to speak for Native Americans. To be explicit, organizations such as the American Indian Movement and the Mexica Movement are notoriously unreliable, yet they are extended legitimacy by reporters and commentators. These groups seek division and are impervious to reason.

Pope Francis chose the right priest to canonize; the ceremony will take place on September 23 in Washington, D.C.

The post Fr. Serra’s Irrational Critics – OpEd appeared first on Eurasia Review.


Vietnam-United States In Quest Of Strategic Partnership – Analysis

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By Dr Subhash Kapila

China’s hegemonistic belligerence and aggressive brinkmanship postures on its contentious claims to the maritime expanses of the Western Pacific involving Japan, Philippines and Vietnam have seemingly impelled Vietnam and the United States in the quest of a strategic partnership.

The United States as the nett provider of security in the Indo Pacific region cannot be oblivious to Vietnam’s status as the “pivotal state” in South East Asia and the region. The United States is conscious of the missing link of Vietnam in the American strategic architecture for both its strategic pivot to Asia and in particular to the Western Pacific which incorporates the globally strategic South China Sea under military siege by China’s construction of ‘artificial islands’ to consolidate its control of the South China Sea.

Vietnam too while attempting not to ruffle China as its most powerful contiguous neighbour is faced with the stark choice of ending-up as a ‘tributary state’ of China or seek the countervailing power of the United States.

Reflective of the convergent strategic concerns of both Vietnam and the United States on China’s unrestrained belligerence in the Western Pacific and in a quest for a strategic partnership, whose first tentative steps emerged recently was the visit of Vietnam Communist Party General Secretary Nguyen Phu Trong to Washington from July 10-16 2015.

Significantly, this is the first ever visit of any Vietnamese Party Chief to the United States. It is more significant in that the Vietnam Party Chief holds no governmental position but is virtually the apex political leader who calls all the political and strategic shots in Vietnam. That with no position of power in the Government, yet received for discussions in the Oval Office of the White House by President Obama is an eloquent proof of the significance that the United States now attaches to its diplomatic moves for a strategically proximate relationship with Vietnam. It is a strategic reach-out by the United State to Vietnam.

Obviously, discussions between President Obama and Vietnam Party Chief focused on defence and security issues and specifically on the security environment in the South China Sea, crucial for Vietnam and the United States and its allies in East Asia. China would not have missed the strategic significance of this top level meeting.

The following agreements signed between Vietnam and United States in this connection need to be recalled:

  • Comprehensive Partnership Agreement 2013
  • Joint Vision Statement on Defence Relations 2015 signed last month during visit of US Defence Secretary, Ashton Carter.

These need to be viewed as the incremental steps towards an inevitable Strategic Partnership emerging as China shows no inclinations to downgrade its belligerence.

Reinforcing the United States quest for a more substantial strategic relationship with Vietnam were the recent flurry of visits to Hanoi of top level US dignitaries indicative of exploring a more comprehensive partnership.

In the defence and security field today the United States and Vietnam have moved closer in terms of naval cooperation and supply of non-lethal military equipment.

Sceptical strategic analysts have reacted that too much significance should not be read in this visit of Vietnam Party Chief to Washington because of two reasons. Firstly, that both The Vietnam Party Chief and the US President have just about a year or so to lay down office. Secondly, two impediments still need to be sorted out regarding the United States not lifting fully its ban on arms exports to Vietnam and Vietnam not yet having acceded to US preferential access to Vietnam’s strategic Cam Ran Bay naval facilities.

It needs to be pointed out that the strategic convergences emerging between United States and Vietnam are driven by respective national security interests and not personality driven. As regards the full lifting of the US arms exports ban, one sees that as inevitable. It’s time has come.

Concluding, two observations need to be made, as follows:

  • To place on record the statement of US Deputy Secretary of State, Antony Blinken and a former US Deputy National Security Adviser, in this connection, who asserted that: “The relationship with Vietnam has moved to a very different plane and part of that has actually been energised by Chinese actions.”
  • Re-emphasise that for the inevitable emergence of a US-Vietnam Strategic Partnership, both the United States and Vietnam have to dispense with their respective “China Hedging” strategies.

 

*Dr Subhash Kapila is a graduate of the Royal British Army Staff College, Camberley and combines a rich experience of Indian Army, Cabinet Secretariat, and diplomatic assignments in Bhutan, Japan, South Korea and USA. Currently, Consultant International Relations & Strategic Affairs with South Asia Analysis Group. He can be reached at drsubhashkapila.007@gmail.com

The post Vietnam-United States In Quest Of Strategic Partnership – Analysis appeared first on Eurasia Review.

Hindus Dismayed At India’s Failure To Contain Frequent Stampedes

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Shocked and dismayed at the July 14 stampede in Rajahmundry district of Andhra Pradesh (India) that is reported to have killed dozens of pilgrims and injuring many, Hindus worldwide are highly critical of frequent occurrences of deadly stampedes at religious gatherings in India.

Hindu statesman Rajan Zed, in a statement in Nevada (USA) today, said that although India was on track to become a global power but it could not even handle a domestic event properly and had yet to come up with a foolproof plan to manage large crowds.

India failed or refused to learn lessons from the previous stampedes as these continued to happen. It was blight on a country, which prided itself on having joined the league of hottest growth economies, Zed, who is President of Universal Society of Hinduism, pointed out while expressing grief over the loss of lives at July 14 stampede.

Rajan Zed further said: “Our hearts and thoughts go out for the victims and their families and we are all in shock and anguish over this unimaginable loss. He called for prayers for the victims of the tragedy and their families.”

Zed indicated that it clearly reflected on India and Andhra Pradesh governments who appeared to have failed to properly manage a popular festival.

Rajan Zed asked for apology from Andhra Pradesh government for failure to prevent this preventable tragedy, adequate compensation for the affected and their families, proper medical care for the injured and action against the negligent officials.

India should better manage its festivals as stampedes were relatively common at India’s religious gatherings where large crowds gathered in small areas with very little or no crowd-control or safety measures, Zed added.

This stampede happened on Godavari river banks on the opening morning of the 12-day major religious festival known as Maha Pushkaralu, which comes once in 144 years, in which about 24 million pilgrims were expected to participate and take a holy dip, reports suggest.

The post Hindus Dismayed At India’s Failure To Contain Frequent Stampedes appeared first on Eurasia Review.

Irregular Migration Threatens Asylum In Europe – OpEd

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By Christopher Horwood*

We are becoming accustomed to strange and shocking sights in Europe: dozens of drowned African migrants washed up on tourist beaches, naval and merchant ships bringing thousands of rescued migrants to Italian ports every weekend and small Greek islands receiving an endless flow of Syrians.

The migration and asylum debate is urgent, necessary and very thorny. It is a debate that is increasingly politicised, confused and packed with contradictions that go to the heart of Europe’s liberal self-identity.

While the rush to save and rescue migrants from possible death on the Mediterranean is laudable and was a response to the surging numbers of fatalities that began 18 months ago, it is now likely that the wider presence of rescue ships is encouraging more crossings.

EU members have agreed on a joint naval operation designed to deter smugglers by force, but those same ships, along with all Mediterranean vessels, are compelled by maritime law to help migrants to safe ports in Europe if and when they meet them.

The irony of televised scenes of EU vessels bringing migrants to shore in Italy while policymakers clamour for ways to stop irregular migration cannot be lost on the smugglers, the general public or on the migrants themselves. Once they reach Europe, even if they do not get refugee status, only about 40 percent are returned. In terms of the individual migrant’s risk analysis, the odds are good. Unless the odds change, the flows will continue.

So, liberal Europe has for good, often compassionate and rights-based reasons, tied itself up in knots. It’s these knots that hamper honest debate. Now, more than ever, we need to understand the phenomenon of irregular movement and mixed migration as part of a larger and longer-term picture.

A perfect storm of root causes

Whether by accident or manipulation, commentators, politicians and others who should know better continue to mischaracterise those attempting to cross into Europe. We are often given the impression that all migrants come from desperately poor, war-torn countries, ruled by predatory states or dictators: driven out by thugs only to be exploited by thugs on the punishing journeys that bring them to Europe’s borders.

Variously used labels for the new arrivals include brutally trafficked, exploited, victims of smuggling, criminals, illegals and job hunters.

In simple fact, there are just two groups that make up these migrant flows: asylum-seekers and other migrants, mostly economic. Both are arriving irregularly (or according to governments – illegally) and are therefore subject to return, if they do not qualify as asylum-seekers or refugees.

Current migration levels are the result of a confluence of several mega trends. These include demographic shifts such as ageing population and labour demand in the global North; the impact of climate change, global inequality, poor governance and endemic poverty in developing countries; protracted conflict in some areas; and confused and often contradictory migration and asylum policies in destination countries.

Modern mobility is also empowered and inspired by unprecedented levels of connectivity – particularly through email and social media – and the virtual proximity of a seemingly obtainable better life. Immeasurable though it may be, we cannot underestimate the force of aspirations, dreams and adventurism of many young people stuck in what they regard as politically restrictive, socioeconomic backwaters.

There is evidence suggesting that migration actually increases as countries become more prosperous and educated. As the lions of the African economy flourish in what is dubbed by some as the African Renaissance, expect more migration not less, as increasing numbers of people have the resources to migrate.

Now, add these factors to a rising criminal opportunity in the form of smuggling, lubricated by high levels of impunity and official corruption and collusion. These are the “root causes” in countries of origin and no amount of wishful thinking will result in them being “solved” any time soon.

These trends and others are coming together to make a “perfect storm” – a tipping point. The result is what we currently see, and unless hard decisions are taken it will undoubtedly continue with very messy outcomes.

Asylum under threat

The confluence of many different streams of migrants into one unregulated flow threatens to do great damage to the international refugee regime. Irregular migrants, with asylum-seekers amongst them, are being permitted to move into the rest of Europe by indifferent or overstretched officials in Greece, Italy, Bulgaria or Hungary. As they show up in European cities and towns in greater numbers, public opinion may shift, and soon refugees and asylum-seekers will be as unwelcome as other migrants. Some might argue that with refugee resettlement places barely increasing despite the growing need, this is already happening.

Highly-publicised coverage of Eritreans and Ethiopians in Calais fighting to break into containers and onto ferries to the UK – while refusing to accept asylum in other European countries – casts doubt on the sincerity of their claims, even if the UK has previously been more accepting than others of certain nationalities. Asylum-seekers should not be condemned for having preferences about where they would like to seek refuge, but European law must also be upheld and the current chaos in places like Calais needs to be controlled before it becomes uncontrollable.

A gamble worth trying

Lawlessness is increasingly characterising the migrant “crisis” in Europe, with Afghan and Syrian extortionists and smugglers preying on their own people in the Balkans and Libyan smugglers threatening Frontex officers with guns as they retrieve a vessel they intend to reuse to smuggle more migrants across the Mediterranean. Meanwhile, a Newsweek article in June claimed the Mafia was deeply involved in a racket involving the running of reception centres for tens of thousands of migrants in Italy.

Migrants often move in groups – tearing down fences, forcing entry into private and public property, ignoring immigration rules and refusing to cooperate with authorities. In this “wild west” scenario, they are emboldened as they see authorities unwilling or unable to hold them back, and have hope that their rough gamble will eventually pay off.

In the emotive and polarising discourse around migration, some will focus only on the vulnerability and protection needs of migrants, pointing to their desperate actions as evidence of their desperate need. Others focus on the illegality of their activities and their undesirability in Europe. In the face of rising extremist and terror threats, security concerns around large flows of undocumented migrants are also causing concern amongst intelligence agencies and cannot be ignored. Meanwhile, politicians struggle to listen to their constituents while trying (sometimes minimally) to comply with refugee and migration legislation. Countries want to appear compassionate, but amidst these chaotic developments it must be clear that the current alarming trends cannot continue.

Urgent need for new policies

Despite all the EU’s talk of cooperation and unity, many countries are only too happy to pass the migrant problem onto their neighbours. Italy and Greece are not serious about fingerprinting new arrivals (a requirement of the doomed Dublin Regulation) or detaining undocumented migrants. Instead, officials turn a blind eye as thousands leave reception centres and head for borders to the north. Meanwhile, France does little to prevent the migrants in Calais from repeatedly trying to board trucks and ferries bound for the UK.

Some consider the right to migrate as inviolable, but nations also have a sovereign right to control their borders – a right exercised as much by countries in the global South as the North. Migration, along with poverty and conflict, may be one of the meta-narratives that characterise the social history of humankind, but that should not mean it can’t be tamed, controlled or regulated. Ever-increasing flows of irregular migrants into Europe are not inevitable or unstoppable. Where there is political will, a way can be found, even if it requires an overhaul of all conventions, policies and agreements around asylum and labour migration.

While a culture of migration in certain countries in sub-Saharan Africa may have set in, demonising smugglers as the main cause is a red herring. Smugglers are responding to demand more than they are creating it. Equally, allowing migrants and asylum-seekers who run the gauntlet of risk and make it to Europe de facto access cannot be a fair or equitable response in a restrictive environment that bars illegal migration and limits legal entry. What of all those in equal need who cannot make it to Europe’s borders?

There is an urgent need to avoid partisan approaches and yield to clear thinking to develop policies to regulate migrant flows that are sustainable and that respect the rights of both EU citizens and migrants, as well as the liberal rule of law traditions that the European Union is built upon.

*Christopher Horwood, has worked in humanitarian and development aid for over three decades and is the founding coordinator of the Regional Mixed Migration Secretariat (RMMS) in Nairobi, Kenya,

The post Irregular Migration Threatens Asylum In Europe – OpEd appeared first on Eurasia Review.

CERN Discovers Pentaquarks

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Data from the Large Hadron Collider (LHC) at the European Organization for Nuclear Research (CERN) outside Geneva appears to have proved the existence of particles made of five quarks, scientists said on Tuesday.

Quarks are the tiny ingredients of sub-atomic particles such as protons and neutrons, which are made of three quarks. The less common and more unstable mesons, particles found in cosmic rays, have four.

A five-quark version, or pentaquark, has been sought, but never found, ever since Murray Gell-Mann and George Zweig theorised the existence of such sub-atomic particles in 1964.

Guy Wilkinson, spokesman for the LHCb experiment based at CERN, the physics research centre that houses the LHC, said a tell-tale “bump” seen in a graph of billions of particle collisions could only be explained by a five-quark particle.

“From the point of view of our experiment, we think it has fulfilled all criteria of discovery. We have no other way of explaining what we have seen. But the scientific method is such that we have submitted a paper to a journal, the journal will consider it, then the community will judge,” he said.
New avenues

The LHC, a circular 27 km underground particle accelerator, has provided reams of data since it started smashing protons together at close to the speed of light in 2010.

Analysis of the collisions has already proved the existence of the Higgs boson, a particle that gives mass to matter, and scientists are now looking for a “dark universe” that they believe exists beyond the visible one.

The pentaquark discovery has opened even more new avenues.

“What we want to do now is to look for other five-quark particles and try to understand more about their nature, and this may tell us something about how even the matter inside our bodies is bound together,” Wilkinson said.

“It may also have cosmic consequences for … understanding what happens to stars at the end of their life.”

He said it was still a mystery why it had taken 50 years to find pentaquarks.

“There must be many, many pentaquarks out there. In fact in our analysis we found two. One is very evident, the other is a little harder to see. There should be many out there.”

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Nuclear Deal: West And Israel Real Winners, Iran Markedly Duped, Arabs To Pay Heavier Price – OpEd

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The following Tweet from the Israeli Prime Minister, “When willing to make a deal at any cost, this is the result. From early reports, we can see that the deal is a historic mistake”, suggests that Netanyahu is unhappy about the Nuclear Agreement that has just been reached between the P5+1 and Iran.

But it is difficult to see how the deal is bad for Israel. In short, Israel has to be pleased as the deal squarely and significantly slows Iran’s ability to acquire a nuclear weapon and buys the Jewish state time, as well as and gives it a face-saving dodging of an immediate face-off with Iran.

The other winners are of course the engineers of the deal. When it comes to national security issues, the US and the EU do not succumb to the will of their politicians and as such it is a mistake to consider this an Obama deal or that of any European leader. This deal happened exactly the way Western intelligences wanted it to be. If that wasn’t the case what value has this deal in case the Republicans win the upcoming elections in the US given their stated position on it.

Be it as it may, what is apparent is the following. The West has secured the slowing down of Iran’s nuclear schedule knowing very well that the situation in the region is not in Iran’s favor. They do understand that Iran, which was once the forefront of the Muslim struggle against Israel and enjoyed massive public support from the Arab world, has now turned into a staunch enemy since the Syrian uprising begun and much blood has been spilled due to its involvement. If you add Yemen, Iraq, Lebanon and Bahrain it becomes clearer how much Iran has to deal with.

The US and Europe know very well that Iran’s present challenges, in addition to the stringent clauses within the deal, will make it impossible for Iran to be a nuclear threat anytime soon. Unless Iran has a covert backup plan, contrary to Netanyahu’s Tweet, Israel must be ecstatic as well.

The devil of what Iran lost with this agreement is in the details and it stands as confirmation that the sanctions have had a strong and biting impact on the Persian nation. The deal reduces the number of Iranian centrifuges by two-thirds. It places bans on enrichment at key facilities, and limits uranium research and development to the Natanz facility.

The deal caps uranium enrichment at 3.67 percent and limits the stockpile to 300 kg, all for 15 years.

Iran will be required to ship spent fuel out of the country forever, as well as allow inspectors from the IAEA inspectors certain access in perpetuity. Heightened inspections, including tracking uranium mining and monitoring the production and storage of centrifuges, will last for up to 20 years.”

Iran wins in one major way though. Iran’s own internal stability depends on the billions expected to enter its economy as a direct results of the deal. This deal comes at the niche of time for Iran in order to manage its increasingly disillusioned population and be able to manage its expansionary ambitions in the region and that is where the Arabs become the real victims of this agreement.

Iran presently sponsors more than forty different militias across the Arab World, despite the decade’s long biting economic sanctions. The removal of the sanctions does in essence bring the real genie out of the bottle. If Iran was capable of unleashing such destabilizing forces while under sanctions what is to be expected with the billions expected by Iran in light of this deal.

In this sense, the Arabs are the real losers of this agreement and will most likely pay heavy and bloody consequences.

Likewise, Iran is not necessarily a real winner precisely because most of what it will gain it will have to use to continue sponsoring the wars it started.

The Snap Back clause which restores the sanctions within 45 days if and when Iran violates the deal stand as insurance for Israel and the West, but there is no insurance for the other players in the region, the Arabs.

It is noteworthy that this deal has another very important advantage for the US and the EU. The sanctions that have been biting on Iran’s economy also meant reduced opportunities for western companies and what this deal does is reopening them. Also, once Iran’s oil and Gas start pumping at full capacity at a future stage, energy prices will be further stabilized in favor of the West.

So while this deal is a double jeopardy for Arabs, it appears to be a double advantage for the West. History does repeat itself very rapidly in our time and the interest-based friendship of the West that we are accustomed of is once again re-emerging. That is of course if Iran remains tame and safe for Israel.

The post Nuclear Deal: West And Israel Real Winners, Iran Markedly Duped, Arabs To Pay Heavier Price – OpEd appeared first on Eurasia Review.

The Occupation Of Greece: A Financial Coup d’État – OpEd

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“This has nothing to do with economics. It has nothing to do with putting Greece back on the rails towards recovery.” — Yanis Varoufakis, Jul 13, 2015

Alexis Tsipras, along with his crew of negotiators, had done much with little. His Syriza government had been fighting a war of attrition with creditors and, with the hectoring Yanis Varoufakis, parried them for weeks. But the European credit system does, however, demand more than its pound of flesh. It demands those who do not play by the rules – and these rules are of the most dubious import – surrender their sovereignty.

On Tuesday, Tsipras faces an internal revolt after making a three year deal with Eurozone leaders that would see the accumulation of more debt – another 86 billion euro bailout – to service an already crippling burden. It also sees greater involvement of the International Monetary Fund, the grand bugbear of austerity finance.

Instead of exiting a system weakened by its own internal contradictions and failings, Greece is to partake in another mistake wrapped in the rhetoric of pro-European kitsch. In what is tantamount to placing a gun to the head of Greece’s sovereignty, parliamentarians will have till Wednesday to finalise what effectively amounts to a suicide pact.

The accord effectively sees the German-led Eurozone group demand control of Greek finances without the provision of debt relief or even a vague sense of genuine debt restructuring. This is a creditor’s vision on steroids, absurdly ambitious and destructive.

Varoufakis saw it coming, calling it “worse” than any other deals placed on the table before. “I trust and hope that our government will insist on debt restructuring, but I can’t see how German finance minister [Wolfgang Schäuble] is ever going to sign up to this. If he does, it will be a miracle” (New Statesman, Jul 13).

Independent Greeks leader Panos Kammenos had made his opposition to another round of austerity concessions crystal clear and unimpeachable. “In a parliamentary democracy there are rules and we uphold them.” Energy Minister Panagiotis Lafazanis and Deputy Labor Minister Dimitris Stratoulis have both expressed public opposition to the measures and risk the sack. Given the calculations in store, Tsipras will have to rely on the pro-European opposition parties, who were resoundingly beaten in the referendum.

The entire arrangement reeks of a seizure of sovereignty, the use of debt bondage and creditor supervision instead of the customary weapons associated with a military invasion. Further to the usual barbarities of savaging the local economy, be it increases in value added taxes, cutting pensions and the placing of automatic spending constraints, a jumble sale of 50 billion euros worth of public assets is being forced upon Greece. Greece, in other words, is effectively being told to sell itself into private hands.

Money obtained from that sequestration of assets is to be placed in a trust fund that will be beyond government hands, another absurdly dangerous measure that will remind Greek citizens where their referendum voice has gone. Tsipras could only say that the agreement had “averted the plan for financial strangulation.” In truth, the Eurozone leaders had rounded up on him in a feast of vengeful savagery, instigating moves that will further cause a constriction in the economy.

Merkel’s austerity fanatics have not covered themselves in glory. They have supervised a sickly vision of capture and control, using austerity as their weapon of choice. Merkel has herself been asked to compare the brutal agreement being demanded of Greece to Germany’s own Versailles Treaty of 1919, where indebtedness and bondage took centre stage in a punitive arrangement. “I won’t take part in historical comparisons, especially when I didn’t make them myself.” Sleepwalking in history can prove to be a dangerous habit.

European Commission President Jean-Claude Juncker, forgetting his own reservations about the legitimacy of the Troika’s demands, threw up the customary straw man in the argument. Grexit was to be avoided at the cost of Greek sovereignty. “The agreement was laborious, but it has been concluded. There is no Grexit.”

Astonishingly, he suggested that the compromise had seen “no winners and no losers. I don’t think the Greek people have been humiliated, nor that the other Europeans have lost face. It is a typical European arrangement.”

This, says Varoufakis, is precisely the problem. The Troika was insincere from the start, refusing to genuinely deal with the crisis while offering inconceivably crushing terms. Bad faith was their game; illegitimacy was their spirit. (Varoufakis repeatedly noted throughout negotiations that the Eurogroup has no legal standing, yet possesses enormous power over individual Europeans.) “The other side insisted on a ‘comprehensive agreement’, which meant they wanted to talk about everything. My interpretation is that when you want to talk about everything, you don’t want to talk about anything.”

The next chapter in this poorly minted odyssey, one of tragic proportions, is whether the Greek parliament gives its approval to the accord. The Germans will take their turn on Friday, with Merkel having to butter MPs up with a needlessly punitive arrangement that is nothing more than economic sadism. Should the package pass in these parliaments, we would have seen a financial coup d’état in the making, and one that weakens all parties. Now that promises to be an all too typical European arrangement.

The post The Occupation Of Greece: A Financial Coup d’État – OpEd appeared first on Eurasia Review.

Criminals Still Prefer Cash For Money Laundering

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In spite of the rapidly changing face of criminality and the rise of cybercrime, money laundering methods detected by law enforcement remain overwhelmingly traditional. Europol’s latest strategic report, ‘Why is cash still king?’, shows that while cash is slowly falling out of favor with consumers, it is still one of the preferred methods used to launder the proceeds of crime.

Almost all crime types make use of cash to facilitate money laundering at some stage, not only traditional crimes which generate cash profits, but also threats now arising from new technologies such as virtual currencies, where cash is used as an instrument to disguise the criminal origin of proceeds.

In the EU, the use of cash is the main reason triggering suspicious transaction reports within the financial system, accounting for more than 30% of all reports. Reports on detections of suspicious physical cash movements represent around one third of all contributions to Europol in the area of money laundering.

Although the use of cash for payments has experienced a moderate decline in the EU, the demand for high denomination notes not commonly used for payments, such as the EUR 500 note, has been sustained. The EUR 500 note alone accounts for over 30% of the value of all banknotes in circulation (1). This raises questions about the purpose for which they are being used and whether this could be linked to criminal activity, which should be further explored.

Linking cash to criminal activities remains a key challenge for law enforcement. “The use of cash by criminals remains one of the most significant barriers to successful investigations and prosecution,” said Rob Wainwright, Director of Europol. “It is a threat that has not received sufficient international attention or legislative solutions. A fragmented enforcement approach at national and international level, and the differing regulatory frameworks across the EU Member States, are widely exploited by criminals, who adapt their methods and routes to take advantage of these loopholes. Stepping up efforts to increase international cooperation and information exchange, and establishing a more harmonized approach among EU Member States concerning cash movements within the EU, are crucial if we are to tackle these criminal activities.”

One of the prevalent methods used by criminals to launder profits remains physical cash smuggling. It is difficult to assess the scale of this criminal activity, but highly conservative estimates based on records received by Europol show that EUR 1.5 billion in cash is detected and/or seized by EU Member State authorities each year.

The findings of ‘Why is cash still king?’ are reflected in a set of recommendations aimed at providing practical solutions which could assist in preventing the use of cash for criminal purposes as well as enabling investigators to achieve higher rates of successful convictions.

The report is dedicated to Clément Gorrissen and Simon Davis of the United Nations Office on Drugs and Crime (UNODC), who lost their lives in the line of duty in their devoted efforts to combat criminal finances in troubled areas of the world.

(1) EUR 1 trillion as of end 2014 (Source: European Central Bank).

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Overweight US Adolescents Fail To Admit They Are Overweight

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Admitting that you have a weight problem may be the first step in taking action, but a new study published in the American Journal of Preventive Medicine found that an increasing number of overweight adolescents do not consider themselves as such.

“Adolescents with accurate self-perceptions of their body weight have greater readiness to make weight-related behavioral changes and are more effective in making the changes,” explained lead investigator Jian Zhang, MD, DrPH, from the Jiann-Ping Hsu College of Public Health, Georgia Southern University, Statesboro GA. “By contrast, overweight adolescents who do not perceive their weight status properly are less likely to desire weight loss, and are more likely to have a poor diet.”

When dealing with self-perception, many factors may come into play. For example, as obesity prevalence has more than doubled in adolescents during the past 20 years, socially accepted normal weight may also be shifting accordingly. “In the wake of the obesity pandemic, the media, weight loss industries, and medical communities have encouraged adolescents to maintain slender frames. Facing harsher messages, more and more overweight and obese adolescents may be increasingly reluctant to admit that they are overweight,” noted Dr. Zhang.

Researchers used data from adolescents aged 12–16 years who participated in the National Health and Nutrition Examination Survey (NHANES) in 1988–1994 (“early,” n=1,720) or 2007–2012 (“recent,” n=2,518). The self-perception of the participant’s weight was obtained from the Youth Questionnaires in the early survey and the Weight History Module in the recent survey. In both surveys, the respondents were asked: Do you consider yourself to be overweight, underweight, or just about the right weight? Participants were categorized as obese, overweight, or normal weight using body mass index (BMI) scores.

The study determined that after adjusting for age, race/ethnicity, sex, and family income, the probability of self-perceiving as “overweight” declined by 29% for overweight/obese adolescents interviewed during 2007-2012 compared with adolescents interviewed in 1988-1994. This misperception was most pronounced among whites and least among blacks.

The researchers also suggest that the Social Comparison Theory may provide an additional explanation. According to this theory, individuals compare themselves to others, rather than to some absolute scale. With more overweight friends, adolescents may have a more positive image of their own weight.

Further contributing factors are that adolescents in general experience significant changes in body appearance as they progress through puberty and the definitions of overweight and obese have changed over time.

Nevertheless, Dr. Zhang and co-investigators caution that, “Becoming conscious of one’s excess weight is the precursor to adopting behavioral changes necessary for appropriate weight control. The declining tendency of correctly perceiving overweight status presents a vast challenge to obesity prevention among adolescents, making the overweight and obese adolescents less motivated to actively engage in effective weight loss behaviors.” On the other hand, the increasing proportion of overweight adolescents self-perceiving their body weight as the right weight may suggest a reduction in social pressure on adolescents and less psychological distress among adolescents to maintain lower weights. The researchers call for novel strategies to delicately protect adolescents’ attitude towards body image while correcting the body misperception to motivate adolescents.

The post Overweight US Adolescents Fail To Admit They Are Overweight appeared first on Eurasia Review.

Jokowi’s Cabinet Reshuffle: Juggling Performance, Patronage And Politics – Analysis

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President Joko Widodo is set to reshuffle his cabinet. While performance is one determining factor, it is likely to be overshadowed by patronage and political calculations.

By Leonard C. Sebastian, Tiola Javadi and Adhi Priamarizki*

Almost nine months after President Joko Widodo announced the line-up of his working cabinet, a deteriorating economy and slow progress of reform are the driving forces determining the necessity of a cabinet reshuffle. While many question whether it would be too soon to judge the ministers in their respective roles, cabinet reshuffles are not an unusual exercise in post-Reformasi administrations.

Former President Abdurrahman Wahid reshuffled the cabinet four times during his two-year tenure. President Yudhoyono, the predecessor of President Widodo, or Jokowi as he prefers to be called, changed his cabinet line-up 14 months after his first-term inauguration, and had a total of five reshuffles during his two-term presidency.

Balancing performance, patronage and politics

Unlike Yudhoyono who dominated his political party, Jokowi had limited political space in composing his working cabinet, and is likely to have limited freedom in reshuffling it, too. Since his inauguration, Jokowi had to contend with pressure from his political party, the Indonesian Democratic Party of Struggle (PDIP) and its chairperson Megawati Sukarnoputri.

Moreover, PDI-P, is not the only political player that will influence the composition of the new cabinet, as the parties that are part of his coalition as well as those from opposition camp will also join the fray. Under such circumstances, besides the ministers’ performances, patronage and political calculations are likely to affect Jokowi’s choices. A recent poll by Kompas showed that 59% of the people are disappointed with the government’s performance.

Among the top concerns were the government’s failure to maintain a stable price for basic commodities and its limited efforts in eradicating corruption, particularly with regard to enforcing the law against elites involved in corruption. Should he reshuffle his cabinet, which will affect several key ministers, Jokowi is likely to go by three parameters: institutional organisation, budget utilisation, and policies.

Jokowi reportedly had been focusing on the economic ministers. Although the president acknowledged that they had good skills, he believes they have failed in stimulating the Indonesian economy and in keeping commodity prices stable.

While the US dollar’s strength had hit emerging market currencies in general, the rupiah did worse than other countries, where it has fallen around seven percent since Jokowi was elected. In the first quarter, Indonesia’s economic growth declined to 4.7 percent, the slowest in five years, while inflation accelerated by 7.1 percent this May.

Political ministers, political cost of reshuffle

Besides the economic ministers, Jokowi is also reportedly focusing his attention on the Coordinating Minister for Political, Legal, and Security Affairs Tedjo Edhy Purdijanto. The president highlighted Tedjo’s statements on the conflict between the National Police and the Corruption Eradication Commission (KPK), which caused a huge controversy.

On the other hand, among the apparently effective ministers are Maritime Affairs and Fisheries Minister Susi Pudjiastuti and Religious Affairs Minister Lukman Hakim Saifuddin due to their breakthrough approaches and thoughts regarding illegal fishing and religious intolerance, respectively.

While changes are needed, Jokowi will have to calculate the political cost of composing the new cabinet. Given his limited political power, patronage becomes a prominent element in clinching the reshuffle. In this, there are two factors to consider. Firstly, Jokowi is not the sole decision maker in PDIP as Megawati Soekarnoputri still holds the throne. Secondly, the President Jokowi also needs to retain the loyalty of his coalition members by including their cadres in the cabinet. Defection by anyone in his coalition camp will loosen his grip on parliament. Jokowi may need to engage in a trade-off between improving his cabinet and retaining the loyalty of a coalition partner.

The new cabinet is also an opportunity for the party oligarchs to strengthen their “wealth defence mechanism” by replacing some cadres seen as rebellious and unfaithful to them. Therefore we could see more party loyalists surfacing if those political parties manage to drive the reshuffle process. These old cadres, especially those who have sacrificed themselves for the party, have a big opportunity to return to the spotlight.

Jokowi to fight back?

To gain more power in parliament, President Jokowi may also appoint ministers from the opposition, such as the National Mandate Party (PAN). Although this issue has been widely discussed in the media, whether it will finally materialise depends on the administration’s calculus of political balance.

Jokowi nevertheless may choose to resist pressure from the party oligarchs, such as Megawati Soekarnoputri and Surya Paloh, as well as the Vice President Jusuf Kalla and fight back. This scenario could emerge if Jokowi feels he has enough political power to contest the oligarchs. Inviting new power groups to his circle to balance the current political order is an initial step for this scenario to come to fruition. Political transactions will be an inevitable consequence of this manoeuvre.

These new factions definitely will ask for some share of government positions and the decision making process, or even political protection and government projects. By doing this, the president is likely to face greater political instability due to the fractious nature of coalition politics rather than consolidate the current order. That is, unless he is willing to accommodate both the new groups and his current partners in an expand coalition. However, a large coalition does not always produce positive results. A downside is a slow decision-making process as all parties need to be involved.

Besides bringing in an outside coalition group, President Jokowi could appoint those from within his own circle to corral the oligarchs. Jokowi however would find difficulties in nominating his own people due to his relatively small political network drawn from contacts established when he was Surakarta’s Mayor and Jakarta’s Governor leaving him with limited options. Furthermore, political contestation is likely if his appointees fail to add political weight to the president’s camp.

*Leonard C. Sebastian is Associate Professor and Coordinator of the Indonesia Programme, Tiola Javadi is Research Associate and Adhi Priamarizki is Associate Research Fellow with the programme at the S. Rajaratnam School of International Studies (RSIS), Nanyang Technological University, Singapore.

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The Real Iran Deal – Analysis

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By Adam Garfinkle*

It seems there is a deal. We know that because the President has already begun his pirouettes as befitting his role as Spinner-in-Chief, and because we have a leaked Russian version of the text that seems pretty realistically what it claims to be. Let me admit right off that I doubted that the Ayatollah Khamenei could bring himself to take “yes” for an answer, for reasons I have laid out several times before (most recently, in short, in “The Waiting Game”, TAI Online, July 9). And I believe that there’s a good chance he has made a fateful error, from his point of view, in so doing (of which more below).

There will be torrents of commentary coming our way. Some people are actually capable of reading the text professionally, with the requisite political experience and technical background, to make sense of the deal. And some will comment despite not being able to do this. Arguments from authority are always to be suspected, but experience and competence are not to be dismissed either. So take care of whom you trust in this.

Many will not take care, however, because their minds are already made up about the deal, text or no text or whatever text. Some will be for it just because they think it obviates the road to war. Not surprisingly, that is what the NIAC statement emphasizes, and you can tell it is a text-analysis-free statement because it was written before any text was available to read. I saw it at about 4 AM. It is fair, I think, to surmise that the fact of an agreement pushes any prospect of a U.S.-Iranian conventional military conflict way out into the misty future. But it is also fair to argue that it makes a nuclear war in the region, perhaps involving the United States and perhaps not, more likely, after approximately 15 years. More about that below.

By the same token, some will oppose the deal, regardless of the text, because it represents the U.S. blessing of Iran as a threshold nuclear military power. That has ever been the Israeli position, very publicly—too publicly, actually, because the way the Israeli Prime Minister went about this leaves Israel with approximately zero influence on what happens next. We might as well note, too, that this Israeli government will probably again turn to its supporters in Congress in what is almost certain to be a futile attempt to derail the deal—which would require getting a veto-proof vote of rejection in both Houses—in a way that will only exacerbate the damage already done to the tradition of bipartisan U.S. support for Israel.

But it’s not only the Israeli government that takes this view. So does the Saudi government, but it has been wise enough to keep its mouth more or less shut in public so that it might retain some influence behind the wizard’s curtain. That might be futile, too; yet the Saudis might at least rate a quid pro quo in the longer run for their approach. We shall see.

But so do lots of serious American observers and analysts take this view, and the reason is clear: These negotiations started more than 20 months ago, during the Obama first term, with the aim of shutting off and shutting down any Iranian enrichment or reprocessing—the two technical routes to acquire fissile material for a nuclear weapon. The negotiations failed to achieve that as the Iranians worked hard to complete their mastery of the nuclear cycle. That is why many of the first-term officials involved in this effort left government disappointed in the President’s approach—Dennis Ross, Gary Samore, Robert Einhorn, for example—and signed onto the June 24 WINEP statement drawing, in effect, 11th-hour redlines on the kind of much-reduced deal still left to be gotten.

Now, some such people and those of similar view may be persuaded that the deal gets over the bar, and that it is preferable to the alternatives at least for duration of the Obama Administration term. For those people, the tightness and reliability of the verification provisions will be the key. The terms of the rest of the deal are better than many of us expected, at least given the reduced parameters of expectation that have existed since November 2013—but I will leave it to others to write tomes about those details. It is clear, just in summary, that both sides made concessions in the past few weeks, and it looks to me that the Iranian ones exceed both in number and significance those of the P5+1 (which the agreement refers to as the E3/EU+3).

But if one believes that no deal can be a good deal if it allows any Iranian enrichment, any Iranian centrifuge R&D, over the next 15 years, then the verification issues amount to a mere gratuitous mist of cordite on top of barrels of Sarin and VX. There has been and remains a good case for this view, what we might call, with apologies to John Rawls, the original position of no-enrichment. Every day that the U.S. government allows Iranian enrichment to go on is a day that counts as another bullet in the corpse of U.S. anti-proliferation policy. But this did not start with the Iranian portfolio. It started, going all the way back to 1994, with the North Korean portfolio. The 1994 Agreed Framework turned out to be a huge mistake. It was a reasonable risk to have taken at the time, given the circumstances of the early post-Soviet collapse era, but at least a few prominent officials in the Clinton Administration—Bill Perry and a younger but already wise Ash Carter—argued within chambers that a military strike was the only real way to avoid piles of proliferation rocks from rolling down the mountain. They did not win the day, alas, and here we are.

The problem with this view, however much I sympathize with it in the abstract, is that it argues more in and about that past, albeit it in an odd sort of way, than it is capable of doing anything in and about the present. What do I mean?

Well, another good case can be made that the time to have begun negotiations with Iran over the nuclear program was just after the statue of Saddam Hussein came down in Firdos Square. We had at that time a shotgun pointed at Iran’s left temple from Afghanistan and another shotgun pointed (we thought, but not for long, as it turned out) at Iran’s right temple from Iraq. One could faintly hear sounds of “uncle, uncle” coming from Teheran, and indeed some in the upper realms of the U.S. government wanted to engage Iran over Afghanistan—where our interests aligned more or less against the Taliban, and they were offering—and over the nuclear business as well. We had leverage, they acknowledged it, and then, more than a dozen years ago, Iran was still far from having mastered the fuel cycle. So it is not whimsical to wonder whether a deal begun under such circumstances could have ended, years ago already, with zero Iranian enrichment and zero Iranian centrifuge R&D.

I wondered enough to ask my old boss about this a month or two ago. I was not surprised by General Powell’s one-word email reply (he is a terse guy at times): “unanswerable.” Of course such a question vaults us into the airy world of the counterfactual. And maybe Iran’s long-term determination to get to where it has gotten today means that we could not have grasped the no-enrichment brass ring back then, no matter what. I suspect that would have been the case. But Powell is right: It is unanswerable and, indeed, we’ll never know. But some of the same folks now criticizing the deal for not doing what has become pretty much impossible over time are those who, in government at that time and out, were dead set against talking with the Iranians. Remember the line? “We don’t negotiate with evil; we defeat evil.” So this is why when I hear certain people rail against this deal on “original position” grounds, it tends to turn my ears red.

This little exercise in history is not just decorative. It matters because it highlights the truth, which I have pounded on before [“The Arms Control Fallacy,” May 4], that arms control diplomacy cannot achieve inside a negotiating room what the parties are not willing to contest outside the negotiating room.

Whatever the President has said about all options being on the table, and about the “fact” that Iran will not get a nuclear weapons under his watch—and he and other senior officials have said these things so many times to so many audiences over so many years that, if it’s all just a lie, it’s the biggest whopper in American history—if the Administration’s behavior led the mullahs to discount any prospect of an American attack, arms control diplomacy never stood a chance of even budging strategic realities, for it had become thoroughly detached from those strategic realities. All it could ever do under such circumstances is affect matters of timing and tonality at the margins.

And, again as argued before, it is rare historically for arms control deals among adversaries to really limit anything. More often they have frozen or redirected activity into other military areas, so that their strategic utility has been modest or even negative. There is no magical arms control pixie dust that makes real problems and dangers vanish into the ether. Let’s put it this way:  You can’t affect the position of a shadow by doing things to the shadow; arms control negotiations are the shadows, and strategic realities cast them.

In the case of these protracted negotiations, what that means is that short of a credible threat to use force, no agreement could erase the implications of the Iranian mastery of the nuclear fuel cycle. So it’s sort of ironic.  Back in the spring of 2003, the U.S. threat to use force against Iran was very credible but we refused to deploy diplomacy to try to take advantage; over the past 20 months, we have deployed diplomacy but have been unable to credibly threaten force. In some ways this sounds like a very badly repurposed version of O’Henry’s “Gift of the Magi.” Or, if you’re statistically instead of literarily minded, like Type I and Type II errors passing in the night.

Those who would parse the deal under the presumption that no-enrichment was not possible given the circumstances, and who will therefore focus on the verification package and inter alia the role of the IAEA, will probably end up being the swingmen in the coming debate. The no-enrichment purists will not change their minds, and the anything-is-better-than-war crowd will not change theirs either. So what does that vortex of debate look like?

So far it does not look so good for the Administration. If the IAEA cannot achieve full-time high-tech monitoring, and if it is denied timely and unlimited inspection rights, then it vitiates all the recent concessions the Iranians have made about the number and nature of centrifuges, about what goes on in Fordow, Nantasz and Arak, and the rest. I do not have an authoritative text in hand yet, so I resist jumping to this conclusion. But from preliminary information, it looks like the old, highly unsatisfactory patterns of Iranian behavior with regard to the IAEA are more or less replicated.

If that is the case, then it will prove very hard, if not impossible, to get enough goods on Iranian violations to trigger the 65-day snapback sanctions provision, which means that for all practical purposes that provision is voided. Note, too, that a prematurely fatigued verification regime means that new Iranian covert efforts will be off the agreement map—and this matters because there has not been a moment in the past 20 years, at least, that Iran has not had or attempted to have covert nuclear programs. In other words, if a resource-challenged IAEA has to spend nearly all its energy gaming around with cheats over Arak and Fordow, it’ll have meager resources left over to devote to uncovering entirely new modes of Iranian violations.

Will doubts over the verification provisions sink the deal in the Congress? Maybe, but I doubt it. The provisions of the Corker-Cardin bill are such that both Houses would have to override a presidential veto with two-thirds of their members. That one can imagine happening in the House, maybe; it’s harder to imagine in the Senate. This is a strange hybrid arrangement in the first place, of course. Instead of the standard two-thirds for a “yes” to ratify a treaty, we have an inverted paradigm: We need two-thirds “no”, in both Houses, for a “no” to void what amounts to an executive agreement. That said, it’s probably the best that could have been arranged under the circumstances.

Does any of this really matter? Yes, it does to point. If Republicans and a few Democratic allies try hard to scuttle the deal and fail—and assuming nothing kinetic or otherwise strange happens in U.S.-Iranian relations in the meantime—it’ll arguably strengthen the Administration politically, and also make life a lot easier for Hillary Clinton going forward. The incentive to try is heightened, of course, by the advent of GOP primary season, whose de facto anthem seems to be the Looney Tunes theme song. White House political operatives are probably licking their lips over the useful GOP antics to come. (I, for one, can barely wait to hear Donald Trump expostulate on the separation-work-unit capacity of various kinds of centrifuges and related esoterica.) Could the GOP leadership recognize the danger and turn down the amplifier? Not this GOP leadership.

The way things turn out will also affect U.S. relations with a range of allies, and not just Middle Eastern ones. The Japanese are watching this business very closely, as are Poles, Australians, and many selected others. But in a sense U.S. allies are already locked in a lose-lose proposition. If the deal goes through, the credibility of U.S. extended deterrence has to shrink in a world of mousetrapping Middle Eastern proliferation; if it is somehow improbably stopped by congressional action, it harms the power of the presidency, which allies tend to like even less under most circumstances.

But the debate to come matters only to a point. Why? Because the strategic stake here is not just about whether or how Iran acquires a nuclear weapons arsenal. It is about what happens to the broader region and world as a result. To the Administration’s credit, it has long recognized and spoken clearly about the real problem several times. To its considerable credit as well, it has dismissed the irresponsible and lazy assertion that the deterrence model of the U.S.-Soviet Cold War experience could be easily superimposed on the Middle East (a point I took pains to stress nearly a decade ago and ever since; “Culture and Deterrence,” Foreign Policy Research Institute E-Note, August 25, 2006). But the way it has gone about these negotiations—by delinking them from Iranian behavior; salivating to the point of embarrassment over the nirvanic transformation of U.S.-Iranian relations supposedly to come; and by going out of its way, it has sometimes seemed, to piss off close allies—has created such fear and insecurity that it is bringing about, through the advent of slightly orthogonal means, the very problem that the deal with Iran was supposed to obviate.

In my view, deal or no deal, it’s too late now to stop the mousetraps from springing in a slow-motion arc over the next decade and a half. Iran is a nuclear threshold state come what may, and the U.S. unwillingness to roll that reality back, and even now to bless it, means that, certainly in 15 years if not before, several other states in the region will want to protect themselves against the consequences. That likely includes Turkey by and by as well as Egypt, Saudi Arabia, the UAE, and possibly others.

U.S. efforts to dissuade these actors from proliferating will face grave obstacles. Great powers are in the protection business, and when a great power’s pledges of protection are not credible for one reason or another, clients will look to other protectors if they can be found, or to various forms of self-help, or to protective, anticipatory abasement before threats, otherwise known as appeasement. Some may try all three, which can be a highly accident-prone kind of activity—as with, for example, Saudi Arabia importing Pakistani nukes into the heart of the Arab world. And of course the problem of fissile material, or actual weapons, getting into the hands of terrorist groups from failed or failing states just gets worse as a multiple of how many nuclear-weapons programs and states there are.

U.S. credibility in this regard is hampered by so many factors that it is, at present anyway, generously overdetermined. The President says he favors nuclear zero; the consequences for the credibility of extended deterrence are obvious and starkly negative. This Administration has failed to adequately modernize the triad, so our capabilities are coming into question. We have too small defense budgets tied down additionally by sequestration, and the optic there reinforces the general picture of declining will as well as power. We also have, it at least seems to many, a foreign policy theory of the case in the White House where allies are thought to be Cold War atavisms that are not U.S. strategic assets but impediments to a safer and less costly retrenched U.S. foreign policy.

And of course, quite aside from the debased qualities of the American protector, we have a highly unsettled regional situation in which politics have been militarized and ideologies polarized. It is a situation that will not surcease anytime soon. So the Iran deal will pour itself into these contours, and its impact will to some extent depend on those contours. But it is not the shaping factor, and in itself it will not—because it cannot—really change those contours.

Note, too, that the debate about whether the deal depends for its meaning or merit on whether the Iranian regime changes over the course of the next 15 years is both less and more than meets the eye. If there is to be an Iranian nuclear arsenal, it would be better if a less noxious regime had control of it. But that does not speak to the mousetrap problem, and it doesn’t guarantee that a “better” Iranian regime—by which we mean one that thinks more like us—would rid itself of that arsenal or even be a better steward of it. The Iranian program is in any event not by origin an Islamic program; it goes back to the Shah, and any strategic analyst who sits in Teheran looking out the window and swivels in his office chair 360 degrees can see why.

So yes, Iran might change as a result of this agreement and that could be a good thing. But there is no reason it has to change or change for the better in a way that matters much to this problem. In a sense this entire line of argument, or reasoning, is a red herring.  It wasn’t that way a decade ago, before the run on nuclear mousetraps around the region. But it is now.

That said—and here is where the change postulate might be more than meets the eye—if sanctions relief is to come, it is probably in the U.S. interest to rush as much of the roughly $150 billion involved into the Iranian economy as fast as possible. It is likewise in our interest to open the economy to all manner of foreigners as quickly as possible: sex, drugs, and rock-and-roll to the max. If we want to weaken the regime—and its emetic IRGC/Qods Brigade Praetorian guard—we should do our best to serve up maximum feasible Schumpeterean “creative destruction,” the same stuff that KO’ed the Shah. The more social change we help unleash, and generate from a new baseline, the more the inability of the current Iranian regime to adjust will doom it to oblivion.

The regime fears its own people and is doubtless prepared now to crack down hard, lest melting glaciers of pent-up frustration get out of hand. How this will play out is hard to say; it may hurt Rouhani more than help him. In any event, we need to do what we can to undermine or overwhelm the crackdown, and being a little (or a lot) more voluble on Iranian human rights violations—which are massive and ongoing—is not a bad way to go about that given the limited means at our disposal to influence internal Iranian social trends.

Looking ahead, what should the U.S. government be doing? Let me skip all the obvious near-term options that dozens of analysts will discuss and focus instead on just one relatively big idea—a stretch goal, so to speak (the dirty work that someone has to do).

If 15 years from now we have an N+3 or N+4 or N+5 proliferation situation in the Middle East and environs, the prospect of preventing the use of nuclear weapons in anger over the long haul decreases as a geometric function of how many such states there are. As Henry Kissinger said long ago, before it was popular to talk about such things, it was hard enough during the Cold War to ensure deterrence between just two powers whose elites spoke more or less the same Western cultural language. The idea that a self-regulating nuclearized regional subsystem in the Middle East could reliably prevent nuclear exchanges more or less indefinitely into the future is therefore a kind of madness. We have to assume, if we err on the prophylactic side of safety, that there is going to be a nuclear exchange in the region—perhaps spilling over into South Asia and even elsewhere—unless something fairly novel is done to prevent it.

Now, some may argue that preventing a nuclear exchange in the Middle East that does not involve the United States as a combatant or as a collateral victim is not a vital U.S. interest. I am not among them. The United States has an overwhelming vital interest as the first-resort provider of global order in preventing millions of innocent people from being killed in a nuclear exchange. We arguably have a special interest in preventing a nuclear exchange that might involve Israel. So let us put the question starkly and directly:  Can the U.S. government sterilize the capacity of regional states from engaging in a nuclear exchange?

Obviously, such an effort would have to have a diplomatic dimension. Over time we would be wise, to take just one example, to try to drag no-first-use pledges out of all relevant parties. But I am thinking about an actual technical capacity to interdict, suppress, or sterilize an exchange.

Now consider: These young Middle Eastern arsenals would likely be fairly modest in size, not especially sophisticated for a good long while, and probably capable of being delivered only by tractable aircraft and missiles.  Could we through a combination of conventional precision-strike munitions and cyber-ops—accompanied of course by space- and land-based intelligence assets for purposes of target acquisition—abort the attempt of 3rd and 4th parties, so to speak, from launching nuclear weapons against each other and/or their other neighbors? Might rapidly deployable forms of missile defense augment such a capability?

We cannot reliably do any such thing right now, but there is no scenario for which such a capability is fully relevant right now. Looking to the future, yes we can do this, if we try. We should therefore begin now quietly developing the means to unilaterally sterilize, or suppress to the extent possible, the prospects for nuclear weapons exchanges within the Middle East, and do some serious thinking about how to integrate such a capability into U.S. military doctrine.

Of course there will ultimately be the usual orgy of hypocrisy about America as an unbidden and unwelcome world policemen when word gets out about what we’re up to—as it surely will. There will also be the usual bleating about preemption, even though in this case we would be preempting a situation in which the United States is not a principal. I don’t care; the stakes are so high that they render such nuisances truly negligible.

The Iran deal certainly is powerless to prevent the kind of future that calls for this capability. If anything, it accelerates that future coming into being by some non-trivial but incalculable degree. We will be consumed by technical assessments of verification provisions for weeks to come, and the airwaves and media outlets will be brimming with the political implications and other short-term Warholish obsessions. Wise people would do well to start looking beyond the froth to what really matters. What really matters looking out ahead is very scary, but it is not something we are powerless to affect. And we really need to affect it.

About the author:
*Adam Garfinkle
is a Fox Fellow at the Foreign Policy Research Institute and the Editor of The American Interest magazine.

Source:
This article was published by FPRI

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Greece: Clashes Breakout At Massive Protest Against Bailout Deal

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Clashes erupted outside the Parliament in the Greek capital. Police have deployed pepper spray and tear gas against protestors hurling Molotov cocktails and rocks during an anti-austerity rally attended by thousands.

Riot police used pepper spray and tear gas to suppress a large crowd of people, who began hurling Molotov cocktails and rocks at police officers. Earlier, police estimated the number of anti-austerity protesters at Syntagma Square at about 12,500 people.

The clashes broke out as the Greek parliament began to debate an austerity bill requiring consumer tax increases and pension reforms.

A journalist was shot in the leg during the scuffles, Skai TV-channel reported. RT’s Daniel Hawkins also reports spent gas and stun grenade canisters littering the square in front of the parliament.

Some 50 protesters have been detained, according to AP. Media say the protesters behind the clashes are anarchists.

Throughout the day on Wednesday, thousands of people marched along the streets of Athens in more or less peaceful demonstrations carrying banners reading “Cancel the bailout!” and “No to the policies of the EU, the ECB and the IMF.”

They were protesting against a new bailout deal with European creditors which, if passed, will lead to a series of reforms bearing heavily on the Greek economy. Greece is already suffering from an unemployment rate of 25 percent.

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More Than 50 Islamic State Child Soldiers Killed So Far This Year

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More than 50 child soldiers fighting for Daesh (ISIS) have been killed so far in the first half of 2015, AFP reported Wednesday.

The Syrian Observatory for Human Rights said it has recorded the deaths of at least 52 child soldiers, all under the age of 16, who were part of Daesh’s “Cubs of the Caliphate” program.

The children were recruits for Daesh’s camp that brainwashed kids, providing military training and education. The Observatory said as many as 31 children were killed in July alone by regime and US-led coalition airstrikes.

Daesh has increasingly been using child soldiers to conduct executions or suicide attacks as recruitment remains a challenge for the militant group. Initially the child soldiers had been used mostly for guarding checkpoints and intelligence gathering.

In March Daesh released the first video of a child soldier executing a Daesh prisoner.

Original article

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Russia And The Iran Nuclear Deal – Analysis

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By Kanak Gokarn*

After a number of missed deadlines, finally a deal has been reached between the P5+1 members and Iran. The deal would curtail Iran’s enrichment capabilities for the next decade while allowing it to pursue its civilian nuclear program. In exchange, the sanctions that have been putting a heavy burden on Iran’s economy will be lifted. While the deal is a small step towards overcoming decades of tensions between Iran and the United States, the role played by other mediators, such as Russia, cannot be discounted.

Ties between Russia and Iran go far back, to the Persian Empire and the Grand Duchy of Moscow. Their relations have not always been friendly and have fluctuated considerably. Periods of peace and prosperity were interspersed with a series of wars; as a consequence, the North Caucasus is now a part of Russia. Armenia, Georgia and Azerbaijan were a part of the Persian Empire as well. Even in recent history, the relations between the two countries have wavered. The USSR was the first to recognize the Islamic Republic of Iran, but was also one of Iraq’s largest arms suppliers during the Iran-Iraq War, according to SIPRI. The relationship has evolved from one where the USSR saw Iran as a way to exert its influence in the Middle East, to one where Moscow and Tehran are on a more equal footing.

Russia has in the last several years attempted to nurture closer ties with Iran in the face of isolation by the West, and it believes an Iran unburdened by Western sanctions is in Russia’s interests and useful for maintaining stability in the region. Russia would prefer an Iran without nuclear weapons, as southern Russian territory would be within their range. However, a nuclear-armed Iran is not a “nightmare scenario” for Moscow as it is for Washington, says Steven Pifer, a senior fellow at Brookings. In addition, Foreign Minister Sergei Lavrov, in his speech given after the deal was reached, mentioned the strategic benefit of a nuclear weapon-free Iran- it would negate the need for a missile defence system in Eastern Europe. Russia has claimed that this system, which was intended to counter possible Iranian missiles, would affect their own deterrent capabilities. He has also been critical of using pressure tactics to get Iran to concede and has been supportive* of a diplomatic solution that allows Iran to determine its own path.

Russia and Iran have both at times been at odds with the West and the former has spoken out against the “unipolar” world that has been created. Russian President Vladimir Putin has stated that he believes in a nation’s right to sovereignty and decries the West’s use of punitive measures against other countries. Moscow has reached out to and has deepened ties with growing non-Western economies, most notably China, in an effort to counter the growing distance between it and the West. Iran is a likely ally in this regard. Russia, and other members of the newly established Eurasian Economic Union (EAEU) such as Armenia have called for the inclusion of Iran as a member. Iran’s application for member status of the Shanghai Cooperation Organisation (SCO) was blocked in 2010 because of UN sanctions. However, it seems increasingly likely that it will be granted member status after the sanctions are lifted. There is also scope for cooperation in other energy sectors through the Gas Exporting Countries Forum, where Russia and Iran, along with Qatar, possess the largest reserves of natural gas.

Russia, as current chair of BRICS, is an advocate of institutionalising the group and for it to have a greater role in global governance. China and Russia are both members of the P5+1 group negotiating with Iran and are opposed to sanctions in general. In 2012, the BRICS countries agreed to abide by UNSC sanctions but agreed that they were not bound by sanctions imposed by other countries. India and China are two of the largest importers of Iranian oil, and India has increased its imports once again. In 2013, the countries signed a declaration that reaffirmed their support of the resolution of the problem with Iran’s nuclear program through “political and diplomatic means”. Relations between Iran and Brazil, and Iran and South Africa are also cordial. With the growing importance of the group itself, and with its Russia’s influence within it, it can facilitate greater cooperation with Iran.

Opening up the Iranian economy to the world will also create a new market for Russian weapons and nuclear technology. There is the case of the S-300 anti-aircraft missile system, the sale of which was banned back in 2010. That ban was recently lifted, and some consider it to be a symbolic gesture to Iran to show that Russia is willing to cooperate. Iran will be in greater need of defensive weapons, and lacking a nuclear deterrent it will have to build its military capabilities in other ways. The two countries also recently announced an “oil-for-goods” deal that would allow Iran to sell oil through Russia, which could even make its way into Europe through the Turkish Stream pipeline. There is talk of it providing assistance in the nuclear energy sector, an area that Russia would do well to promote as an alternative to acquiring weapons. Establishing early ties with Tehran would give it an advantage over American or European firms.

However, the possible lifting of sanctions, especially those affecting oil exports, has raised concerns about a further drop in oil prices. Russia’s break-even oil price is $98 per barrel, and prices are currently hovering around the $60 per barrel range. Russia’s economy is already feeling the effects of low prices. There is an added burden from the sanctions that have been imposed on its banks, energy and arms sectors following the Ukraine crisis. Lower prices will hurt the economy, but it the benefits of having Iran as a committed, stable partner in the region outweigh the loss of revenue.

Iran and Russia’s links to the Middle East are equally important. They support the same side in the Syrian conflict, a fact that has no doubt built some goodwill between the two nations, and all countries in the negotiations are united in their campaign against ISIL. What is interesting for Russia is how greater cooperation with Iran will affect its ties with other Middle Eastern nations such as Israel, which has been a vocal opponent of a nuclear deal with Iran. Israel however does not occupy a special position in Russia’s foreign relations as it does for the United States. Moscow and Tel Aviv’s close relationship is unlikely to be affected by this deal, although Iran getting Russian missiles has been a cause of worry for Israel. The S-300 is a defensive system, so Russia will likely be more realistic about their apprehensions.

Russia and the other major player in the region, Saudi Arabia, have not been particularly close. Iran and Saudi Arabia are opposed on a number of issues, primarily religion and their dominance in the region. The Yemen conflict between a local Zaidi Shiite uprising and Shafi’i Sunnis has been frame as a proxy war between the two. Iran and Russia are also at odds with Saudi Arabia in the conflict in Syria and Iraq. Moscow’s closeness with Tehran has aggravated tensions with the Saudis, but recently there have been shows of increased cooperation between the two. A number of agreements have been signed between the two countries, most notably a deal to invest $10 billion in Russian sectors such as agriculture, retail and transport. In return, Russia has agreed to cooperate with the Saudis in the nuclear energy sector. By aiming to increase bilateral cooperation and maintaining cordial relationships between two ideologically opposed nations, Russia can improve its standing in the international arena by mediating between them should the need arise, a role it played during the negotiations over Syria’s chemical weapons, and in these negotiations as well.

In all, if the deal goes through, Russia is likely to lose some in concrete terms such as oil sales but gains a valuable ally willing to cooperate with it and other countries on regional issues. Although relations between the United States and Iran will no doubt improve, one deal will not be enough to undo decades of mistrust. Iran also provides a new market for Russian defence equipment and its influence in the region will go a long way in stabilizing it. Russia’s policy of building closer ties to countries such as China and Iran can be useful at a time when its ties with the West are at a new low. It can use the building of closer, more equitable ties with regional powers as a platform to improve its position and credibility in international affairs.

*Kanak Gokarn is a Research Intern at Observer Research Foundation, Delhi

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None ‘Heil’ Trump – OpEd

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America is a country founded on the principle—regardless of how imperfectly carried out in practice—that all men* are created equal. We celebrate and honor the value of the individual, endowed irrevocably with the rights to life, liberty, and the pursuit of happiness.

We cherish the American Dream that, regardless of the circumstances of birth, with grit and determination, anyone can succeed.

And while we may not yet be there, we strive to fulfill Martin Luther King’s dream of a nation in which all are judged solely by the content of our character, not by the color of our skin.

How un-American, therefore, to witness Donald Trump as a candidate for the Presidency of the U.S. practicing identity politics, lumping together and branding an entire population—illegal immigrants from Mexico—as rapists and murderers.

And he goes farther. Trump lays the blame for the moribund American economy at others’ doors: “[The unemployed] can’t get jobs, because there are no jobs, because China has our jobs and Mexico has our jobs.”

Witnessing cheers for such scaremongering should strike fear in the hearts of everyone who loves liberty. We’ve seen before a country weary of economic malaise cheer a charismatic leader rallying his followers against a scapegoat: Hitler laying the blame for Germany’s economic crisis on the Jews.

And just as disastrous German economic and monetary policies exacerbating the punitive Treaty of Versailles—not “the Jews”—produced Germany’s ills, so Trump and the American people need look to our own dysfunctional government—not Mexicans—as the primary producer of our economic stagnation.

A government peddling mediocrity and class warfare in the place of “public” education; a government erecting increasingly insurmountable barriers to economic opportunity and entrepreneurship; a government bankrupting the middle class and inuring dependency.

A land of opportunity has no fear of more people—we recognize them as a source of wealth—human capital, growing our economy.

American Conservatives cheering Trump have forgotten that their patron saints—Milton Friedman and Ronald Reagan—both recognized Mexican immigrants as a benefit to the U.S.

Friedman famously tempered his support for immigration—

Now, that Mexican immigration, over the border, is a good thing. It’s a good thing for the illegal immigrants. It’s a good thing for the United States. It’s a good thing for the citizens of the country. But, it’s only good so long as it’s illegal.

—with warnings on the costs of welfare: advocating illegal immigration, since illegal immigrants are not eligible for welfare. Thus, he rightly called for the abolition of the Welfare State—not the abolition of immigration.

Yet even accounting for the costs of public benefits, numerous studies from Independent Institute and others find that immigration produces a net benefit to the U.S. economy, and a restriction on immigration especially hurts small business.

As more than 500 economists, including 5 Nobel Laureates, agree:

Immigrants do not take American jobs. The American economy can create as many jobs as there are workers willing to work so long as labor markets remain free, flexible and open to all workers on an equal basis.

So this is the cry around which all Americans should be rallying: dismantle the horrific government programs that are producing an ill-educated citizenry, blocking opportunity and entrepreneurship, and replacing our culture of valuing every individual as possessing unique and unlimited potential with one that classifies and brands us by race, creed, national origin, and gender.

Americans should indeed stretch out our right arms—not in “Heil” for Trump’s ridiculous scapegoating—but to raise high the lamp of liberty, a welcoming beacon for all who yearn to breathe free.

———
*”Man” is our genus: human being, and encompasses male and female.

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All’s Not Smooth Sailing Along China’s Maritime Silk Route – Analysis

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Perhaps the most interesting aspect of China’s Rise over the past decade has been its diplomatic setbacks in a region it needs to consolidate first before setting its sights further abroad. The might of the PRC has not been lost on the states of Southeast Asia, some of which have been slowly congealing into a loose ant-Chinese coalition of sorts. Beijing has become aware of its failure to balance its hard power excesses with the reassurances necessary to prevent fear amongst its neighbours from becoming a stumbling block in its goal of regional leadership and is attempting to address its failings via various means, including economic – drawing these states into a commercially integrated ‘maritime silk route’ as part of its ‘peripheral diplomacy’. But recent events have shown the limitations of this policy.

In June the Philippine president Benigno Aquino arrived in Japan for a 4 day visit where he drew headlines after giving a speech likening China’s policies in the South China Sea to Nazi Germanys expansionism during WW2. The timing of the statement was welcome to Japan since 2015 marks the 70th anniversary of the end of WW2 with corresponding levels of Japan bashing across the region. Aquino’s statements drew attention away from the memory of Japanese aggression in the region, focusing instead on the growing threat posed by China to regional stability. Aquino has sought Japanese help in resisting Chinese actions in the South China Sea and is also benefiting from a deal financed by Japan which will see 12 high speed patrol vessels for the Philippines Coast Guard delivered in 2016. In 2012, Aquino’s foreign secretary, Del Rosario stated that: “We are looking for balancing factors in the region and Japan could be a significant balancing factor.”

American forces are also being welcomed back into the Philippines as part of an Enhanced Defense Cooperation Agreement, signed by President Barack Obama during a state visit in April 2014.

July 6-10 saw a visit of Vietnamese General Secretary Nguyen Phu Trong to the United States – the first time the party’s leader has ever visited the country, as part of what analysts have called Vietnam’s pivot towards the United States. But here also the sailing has not been smooth; human rights concerns are have been put forward as the reason that groundbreaking developments such as the complete lifting of the lethal arms embargo and the upgrading of the relationship to “extensive comprehensive partnership” were not achieved. Nevertheless, as Alexander Vuving writes “Vietnam and the United States now trust each other far more than either trusts China”. Recent months have seen the signing of a ‘Joint Vision Statement’ meant to guide future relations between the two countries, and the US has pledged $18 million towards Vietnam’s purchase of American Metal Shark patrol vessels. So much for wartime historical memories that continue to haunt Japan.

Added to the mix have been a host of interregional ‘strategic partnerships’ forged as a result of the common Sinic denominator, such as that between Japan and the Philippines, the Japan-Malaysia strategic partnership, the Vietnam-Phillipines strategic partnership, India-Vietnamese security cooperation, as well as a host of enhanced U.S. relations with states in the region.

Bad China

The past 18 months have seen China reclaiming land around disputed islands and reefs in Paracel and Spratly islands at alarming rates. Some 2,000 acres of land have been added to a number of islands in the Spratly archipelago in the South China Sea. In the Paracel Islands claimed by Vietnam, China has led land reclamation efforts on Duncan and Woody island, with the latter seeing an upgraded 2920 meter concrete runway and other features. These island building measures have been justified by China under humanitarian and civilian grounds, but their strategic significance has not been lost – the 3000m runway on Fiery Cross reef in the Spratleys can be used by both civilian and military aircraft and in 2014 satellite imagery picked up two mobile artillery guns on one of the Spratlys, but later removed. China is building upon at least 7 disputed features in the Spratlys, including the Subi reef, Hughes reef, Mischief reef, Johnson south reef, Cuarteron reef, the Gaven reef and Fiery Cross reef.

Land reclamation on disputed maritime features, coupled with China’s bellicosity at sea have set the stage for the working of balance of power politics to emerge with scientific clarity: the smaller states in the region, once moving closer to China as a result of growing commercial intercourse and a general weariness with ‘American hegemony’ which found global expression after the early 2000’s, now see a shift in emphasis from cooperation with, to hedging against the PRC. To China, the logic of its actions was clarified in 2010 by its then foreign minister, Yang Jiechi who stated that “China is a big country, other countries are small countries, and that’s just a fact.” If it was only that simple.

The provocative defense intellectual Edward Luttwak writes that China suffers from a ‘strategic autism’ which prevents it from behaving as a great power should. Its “acquired strategic deficiency syndrome” has meant that instead of placating the lesser states of the region who are at the frontlines of a China growing at near double digit rates in the economy, and expanding its military at a colossal rate, Beijing instead takes steps which seem deliberately designed to illicit a reaction from those at the receiving end of the stick. In 2011, Vietnamese and Philippines oil exploration vessels were subject to Chinese harassment near the Spratleys and in 2012 China occupied the Scarborough Shoal claimed by the Philippines. In 2014 China sent an oil rig, the HD-981 into waters claimed by Vietnam. The episode caused an anti-China uprising in Vietnam where Chinese businesses were burnt down. The HD-981 returned in June of this year. Its this sort of behaviour that led Joseph Nye to remark that “Only China can contain China“.

Throwing money at angry folk

Considering all that has happened over the past year and a half, it is somewhat perplexing that in october 2013 president Xi at a ‘work forum on Chinese diplomacy toward the periphery’ announced a new effort to heal the rifts between China and its maritime neighbours to the south. ‘Peripheral diplomacy’ according to Xi meant to “strive for obtaining an excellent peripheral environment for our country’s development, bring even more benefits of our country’s development to peripheral countries, and realize common development.” Michael Swaine writes that the forum “was held at least in part to respond to increasing tensions between Beijing and many nearby states in recent years due to worsening territorial and resource disputes.” Perplexing, because despite Beijing’s clarity on the matter, relations with its ‘periphery’ are still heading south.

One means to achieve a better ‘periphery environment’ however, was Xi’s 2013 announcement in the Indonesian parliament of a 21st Century Maritime Silk Road which seeks to draw in states from Southeast Asia all the way to Europe via the Indian Ocean into a commercial project designed to enhance inter-regional trade via the promotion of “standardized and linked trade facilities, free trade zones and other trade facilitation policies, financial integration promoting the renminbi”. The maritime silk route forms the oceanic component of China’s “One Belt, One Road” strategy of Eurasian economic integration – the overland Silk Road Economic Belt was announced by Xi in Kazakhstan in september 2013. Some 90 billion dollars have already been earmarked for the projects via the AIIB, the New Silk Road Fund and the BRICS New Development Bank. Former Treasury Secretary Larry Summers ominously wrote that the success of China’s AIIB bank marked “the moment the United States lost its role as the underwriter of the global economic system.”

Whereas Deng Xiaoping advised China to maintain a ‘low profile’, Xi seeks a policy of ‘national rejuvenation’. This has translated into China’s boisterous and counterproductive policies in the region, which Xi hopes to redress by placating criticism of China via a carrot and stick approach hinging on access to China’s maritime silk road trade and investment network, and hard cash. Yan Xuetong, dean of the Institute of Modern International Relations at Tsinghua University explains that “The policy now is to allow these smaller countries to benefit economically from their relationships with China. For China, we need good relationships more urgently than we need economic development. We let them benefit economically, and in return we get good political relationships. We should “purchase” the relationships.” Put differently, Yan says “If we cannot make these neighbors benefit from the relations, these countries will ask, “Why should I be on good terms with you?”

Beijing’s tactic of buying friends and influencing people, with cash, loans, and access to its lucrative market of over a billion people, is clearly at work among ASEAN. When the Philippines took China to court in 2013 over the legality of its South China Sea ventures, Beijing responded by significantly curtailing much needed investments in the Philippines, a clear warning to those who would step out of line once the money starts flowing. But as the Philippines intransigence and Vietnam’s American outreach demonstrate, and as Norman Angell found to his dismay in 1914, mutually beneficial commercial exchanges are not enough to quell political differences. ANU’s Feng Zhang wrote that “the persistence of South China Sea tensions and China’s growing military clout in the region will dispose them (ASEAN) to view OBOR (One Belt, One Road) in geopolitical terms, not in terms of economic cooperation, which Beijing prefers.”

But what does ‘One Belt, One Road’ mean in the long term? Consider the words of Deng Xiaoping in 1994; China’s international goals must be to first “oppose hegemonism and power politics and safeguard world peace; second, to build up a new international political and economic order.1” This of course sounds a lot like American policies after WW2 – which Beijing claims to reject. Xinhaunet seemed to give the game away when it wrote that “While the Marshall Plan was crucial to Western European countries’ rise from the ashes of WWII, it also helped the United States to establish the U.S. dollar-centered Bretton Woods System, which practically ensured the absolute dominance of the U.S. currency. But China does not want that.” Eurasian integration and development via infrastructural alliances, regional security organizations such as the SCO and CSTO, and the promotion of the Yuan as a regional trade currency may well be the instruments of forging a credible post Cold War political and economic order.

Without being too dramatic, it’s useful to conclude with the conclusion of a Yale analysis stating that the One Belt, One Road initiative could mark “a major step towards recreating the Chinese world order of the ancient times known as tianxia, that is, all regions of the known world that belonged to the heavenly-mandated emperor of China. This new world order will not be simply rhetorical, but could impose significant geopolitical implications.“

*David Hurrell studies International Relations & Diplomacy at the University of South Africa and blogs at geopolitic.us

Notes:
1. Brzezinski, The Grand Chessboard, 1997, page 170

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The Multi-Trillion Dollar Oil Market Swindle – Analysis

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By Leonard Brecken

In the past, I documented the overstatements by both the IEA and EIA in 2014 & 2015 in terms of supply, inventory and understatements of demand. Others also noticed these distortions and, whether intentional or not, they exist and they are very large in dollar terms. These distortions, which are affecting price through media hype and/or direct/indirect price manipulation, are quite possibly the largest in financial history.

Putting numbers behind it, with worldwide production running some 95 million barrels per day, and assuming $55 per barrel for oil, the market for crude oil is about $5.2 billion per day. Each $10/Barrel change is worth nearly $1 billion/day or $365 Billion/year for the worldwide crude oil market. Add the worldwide equity market caps of oil and oil related equities and debt you have a scandal that is in the trillions; a number that cannot be ignored.

According to Cornerstone Analytics, who have documented the IEA systematically underestimating demand in 2012-2013 only to revise it higher quarters if not years later, the EIA has created the appearance of an imbalance of supply by some 500 million barrels or $2.5 trillion in the last 5 quarters alone. This has easily swung oil by at least $20/barrel if not more.

I have maintained that oil should have corrected to around $70 in the fall of 2014, tied to U.S. production increases which at the time represented the price at which drillers would continue to add to supply. That price tied to cost reductions has probably been reduced to $60ish currently. But today, with the consensus oversupply widely quoted in the media as some 2 million barrels per day worldwide, it’s clear that if the numbers are correct below, the perceived oversupply wouldn’t exist at all. Suffice it to say prices would be at least at the point where production would need to be added, perhaps around $60-$70 per barrel, if not higher.

Assuming that number at $70 and with the blended average of WTI & Brent at $55/Barrel approximately, at $15/Barrel given the 95 million barrels of global production, then we can estimate that global oil markets are being undervalued by about $1.425 billion per day or over $500 billion per year.LEB1 ja

Furthermore, I don’t even take into account whether oil futures are being manipulated (much like FX, GOLD, LIBOR – all have been either accused of or been caught in rigging scandals) along with every other commodity as a result of oil’s collapse and its financial impact.

Why regulators, and especially the media, refuse to address this, even in theory, and instead choose to perpetuate the falsehood of oversupply is beyond me. In the last two months, E&P equities fell 10 weeks in a row, which hasn’t happened since 1989.

To answer our own question on why this entire event is being largely ignored, maybe that oil is thought to spur higher economic growth as suggested previously. But so far that has yet to even materialize as U.S. GDP growth has actually slowed, not accelerated. Only time will tell whether this exaggerated move in oil, as well as its volatility, is justified or not. As reported here, the EIA has already revised lower, though only slightly, its prior month’s production forecast as we predicted. Look for more of this to come.

Source: http://oilprice.com/Energy/Crude-Oil/The-Multi-Trillion-Dollar-Oil-Market-Swindle.html

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An Unintended Consequence Of US Strategic Ambiguity: A Russia, China And Iran Troika – Analysis

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Washington just doesn’t get it, argues Samir Tata. Its recent strategic ambiguity is not only endangering its status as a global power, it is also aiding and abetting the above three nations’ “axis of expediency,” whether intentionally or not.

By Samir Tata*

In order to provide maximum flexibility in addressing difficult policy choices, current US grand strategy has reflected a preference for ambiguity over clarity. Three major examples of this ambiguity include NATO’s expansion into Russia’s perceived sphere of influence, the Senkaku/Daioyu Islands dispute between Japan and China, and Iran’s nuclear power program. Strategic ambiguity has, in turn, led to increased bilateral tensions between the United States and the main protagonists in these disputes. In response, an axis of expediency has emerged among China, Russia and Iran that’s driven by a shared desire to neutralize Washington’s efforts to use energy sanctions to coerce them into accepting particular policy preferences. As a result, the United States will need to have greater strategic clarity and a deeper appreciation of the vital national interests of its adversaries or risk its position as the sole global power.

The Coming Storm

In the decade and a half following the end of the Cold War, NATO and Russia seemed to have arrived at a modus vivendi based on an implicit understanding to respect each other’s sphere of influence. Between 1992 and 1997, an enfeebled Russia managed to patch together a European cordon sanitaire across its vulnerable southern underbelly, stretching from Belarus, Ukraine and Moldova through to Georgia, Armenia and Azerbaijan. By not raising any objections, NATO had, in effect, acquiesced to Moscow’s efforts to craft a sphere of influence. Likewise, Russia accepted NATO expansion as it unfolded through 2004. NATO’s new cordon sanitaire stretched from the Baltic Sea to the Black Sea taking in several former Soviet states and Russia’s erstwhile Warsaw Pact allies.

Since then, Russia’s strategic priority has been on preserving the stability of its status quo with NATO. However, this implied bargain was effectively upended in 2006, when NATO used its Riga Summit to encourage Georgia and Ukraine into becoming full members of the Alliance. Neither the US nor its NATO partners have articulated a strategic rationale for this volte face. For its part, Moscow has cut through the fog of strategic ambiguity on several occasions. The 2008 invasion of Georgia, 2014 annexation of Crimea, and continuing support for pro-Russian rebels in eastern Ukraine demonstrates unambiguously that Moscow will safeguard its cordon sanitaire and enforce its red line against further NATO expansion along its border in Europe.

The type of ambiguity that underpins US-Japanese relations might one day be exploited by China. Probably only next to the NATO Treaty of 1949, the most consequential defense commitment the US has is the Treaty of Mutual Cooperation and Security with Japan. Article V of the Treaty states that “each Party recognizes that an armed attack against either Party in the territories under the administration of Japan would be dangerous to its own peace and safety and declares that it would act to meet the common danger”. However, there are two glaring omissions in this clause that create ambiguity with respect to the nature of the US response in the event of an armed attack on Japan. First, an armed attack on Japan is not considered to be an armed attack on the US but merely dangerous to its peace and safety. Second, the clause is silent with respect to the option of a military response, which raises doubts as to whether the initial American response would involve the use of military force. By contrast, under Article V of the NATO Treaty, a similar armed attack against a NATO ally would be considered an armed attack on the US, and the option of a military response is explicit.

The potential impact of this ambiguity on the status of the disputed Senkaku/ Daioyu Islands should not be underestimated. Over the last two years, the dispute between China and Japan (and to a lesser extent Taiwan) over the sovereignty of this island chain has become increasingly tense. Indeed, emboldened by Washington’s affirmation that the Senkaku Islands are covered by the Treaty of Mutual Cooperation and Security, Japan might one day pursue a course designed to provoke Chinese intervention.For instance, one month after receiving Washington’s assurances, Tokyo announced plans to build military facilities on the nearby Nansei Islands. Six months later, China responded by declaring that it was building a military base on the Nanji Islands (about 100 km from the disputed islands). Accordingly, China’s willingness to escalate its standoff with Japan might reflect an implicit assumption that the US is unlikely to invoke the military option so long as only Japanese forces are targeted in a limited confrontation (such as a Chinese seizure of the islands).

Much like its relations with China and Japan, tensions between the United States and Iran are also obscured by two layers of ambiguity: concerns over the exact nature of Tehran’s nuclear program and control over access to the Persian Gulf and its natural resources. Under three presidents – Nixon, Ford and Carter – the US encouraged the Shah of Iran to develop nuclear power to meet his country’s domestic energy needs. Nuclear power was also expected to assist Tehran’s efforts to maximize its oil production capabilities in order to generate hard currency revenues. Yet, while Washington supported the Shah’s ambitious plans for civilian nuclear power, it also consistently refused requests to develop a domestic capacity to enrich nuclear material.

In fact, Washington’s interpretation of the Nuclear Non-Proliferation Treaty (NPT), as articulated during Senate hearings in 1968, was that non-nuclear weapons states could only pursue nuclear enrichment activity under safeguards. This also reflected the US’ fear that the Shah’s ambitions for nuclear enrichment could pave the way for Iran to develop a nuclear weapons capability. A nuclear-armed Iran, even under the friendly regime of the Shah, could jeopardize US control over access to oil from the Persian Gulf. Indeed, the substance of the US – Iranian negotiations over nuclear enrichment that proved so vexing under the Shah is once again the central challenge facing negotiators as they try to resolve the current impasse over Tehran’s nuclear program.

A Troika to Counter Energy Sanctions

In its confrontations with Iran and Russia, the United States’ weapon of choice has been energy sanctions. Key elements of the sanctions imposed by the US and its allies (the EU, Japan and South Korea) include an embargo on oil and gas imports from Russia and Iran, and a prohibition of investments in both states’ energy sectors. The aim is to deny Moscow and Tehran export markets for their energy resources and to cripple their ability to sustain high levels of oil and gas production, thereby depriving them of much-needed hard currency revenues. In the case of China, energy sanctions would most likely would be focused on denying it access to oil and gas imports from the Persian Gulf and Africa.

US sanctions have severely hampered Iran’s oil and gas industry, and seriously diminished its role as an energy exporter. However, the inexorable pressure of sanctions has also pushed Iran into the arms of Russia and China – not by choice but by necessity. As a result, Russia has built [and provides supplies for] Iran’s first nuclear power plant at Bushehr and also agreed to construct up to eight additional plants for the Islamic Republic. Moscow is also Tehran’s largest supplier of conventional military equipment. Indeed, in a high profile visit to Tehran earlier this year, the Russian defense minister, Sergey Shoygu, signed an expanded military cooperation agreement that underscores Moscow’s determination to maintain its defense ties with Iran.

Closer Sino-Russian defense ties are by no means in the offing. However, Moscow is more than capable of using its energy resources to strengthen its relations with Beijing. The US Energy Information Administration (EIA) estimates Russia’s oil exports to Europe amounted to 5.8 million barrels per day in 2012. In the same year China’s oil imports were about 5.6 million barrels per day (of which only 0.5 million barrels per day were provided by Russia). So Moscow could satisfy all of Beijing’s oil import requirements by switching sales from Europe to China. Indeed, the same is also true for natural gas. In both instances, Russia can neutralize American and European sanctions targeted at its energy industry, while China can enhance its energy security.

Indeed, China is acutely aware of its vulnerability to US energy sanctions as tensions between the two countries grow. According to the EIA, in 2014 China surpassed the United States as the world’s largest importer of oil and gas, virtually all of which is delivered via tankers passing through the Malacca Straits to the South China Sea. Since the US Navy controls all of the vital maritime chokepoints and the associated sea lines of communication, Washington could successfully enforce an embargo on Chinese energy imports via a naval blockade. Russia and Iran are obvious energy suppliers who could deliver all of China’s oil and gas import needs via land-based pipelines outside the control of the United States.

Not surprisingly, Russia and China have stepped up their energy cooperation in an effort to counter a US-led energy sanctions strategy. And despite the embargo on energy imports from Iran, China continues to be Tehran’s largest oil customer. Clearly, American strategic ambiguity has triggered unintended consequences in terms of bilateral tensions between the United States and Russia, China and Iran, respectively, and encouraged these adversaries to try to band together and form a troika to counter Washington. As a result, the US must reassess its current preference for ambiguity. It also needs to articulate the strategic rationale for NATO’s current boundaries and affirm the status quo with Russia. With respect to its defense treaty with Japan, Washington should be absolutely clear about its commitments to Tokyo (along the lines of the NATO treaty) but distinguish this commitment from territorial disputes. Finally, Washington must reaffirm its 1968 interpretation of the NPT in finalizing an agreement on Iran’s nuclear program. Only greater US strategic clarity will help to ensure that this embryonic axis of expediency does not morph into a grave threat.

*Samir Tata is a foreign policy analyst. He previously served as an intelligence analyst with the National-Geospatial Intelligence Agency, a staff assistant to Senator Dianne Feinstein, and a researcher with Middle East Institute, Atlantic Council and National Defense University.

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Cover-Up Of Gay Leader’s Exploits?

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Last November, Terrence Bean was taken into custody in Portland, Oregon following an indictment by a jury that charged him with multiple sex crimes against minors. Now additional child sexual abuse charges have been made against him. Why isn’t the media covering this? Because he’s a prominent gay leader, that’s why.

Bean is the co-founder of the Human Rights Campaign (HRC), the most influential gay group in the nation; he is also a big donor to President Obama and even flew on Air Force One with him. The Associated Press (AP) chose not to cover the latest allegations, but not because it has no interest in new charges against alleged sex offenders: it does if the accused is a priest.

On June 28, AP reported on new charges against James Rupp, a former Michigan priest who was accused of sexually assaulting boys decades ago. On April 8, AP reported on new charges against Rev. Joseph Maurizio Jr., a Pennsylvania priest accused of molesting boys in Honduras. But there was no AP story on the latest charges against Bean. The AP bias is even worse than this.

On July 7, the day before Bean was hit with new charges, his lawyers filed a motion to have the multiple sex charges against him dismissed. Guess who covered that? AP, of course. The cover-up doesn’t end there.

HRC has no listing of Bean on its website, and it even lies about his role in founding the organization: it lists Steve Endean as the founder, when, in fact, he was a co-founder with Bean. That’s not an error—it’s disinformation. And by the way, guess what happened to Endean? He died of AIDS in 1993, having contracted the disease in 1985.

We are registering a complaint with AP. As for HRC, it’s not worth our time. But we will be sure to let them know that we’re on to them.

The post Cover-Up Of Gay Leader’s Exploits? appeared first on Eurasia Review.

Afghanistan: Taliban Leader Says Peace Talks ‘Legitimate’

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In an Eid message attributed to Mullah Omar, the reclusive Taliban leader purportedly voiced his approval for the “legitimate” peace talks between the militant group and the Afghan government. Negotiations between Taliban and the Ashraf Ghani-led government, which began earlier this month, are set to resume after the Islamic holy month of Ramadan ends.

“If we look into our religious regulations, we can find that meetings and even peaceful interactions with the enemies is not prohibited (…) Concurrently with armed Jihad, political endeavours and peaceful pathways for achieving these sacred goals is a legitimate Islamic principle”, Omar said in a statement posted on the Taliban’s official website.

Members of the Afghan High Peace Council sat down with Taliban cadres last week in Murree, a tourist town in the hills north of Islamabad, for their first official talks to try to end the long conflict.

The sides agreed to meet again in the coming weeks, probably after the Eid. The split in responses, with some commanders openly questioning the legitimacy of the Taliban negotiators in Murree, underscored the potentially dangerous faultlines within the movement, particularly between the older leadership and younger.

In the statement, Omar sought to dispel any notion of a split. “All mujahidin and countrymen should be confident that in this process, I will unwaveringly defend our legal rights and viewpoint everywhere”, he said, adding that the purpose of talks was to ‘bring and end to the occupation of Afghanistan.

The comments on the peace process by Omar, on whom there were rumors of his ill health and even death, add to positive comments of the past days also from the governments of Kabul, Islamabad, Beijing and Washington, as also the UN.

The post Afghanistan: Taliban Leader Says Peace Talks ‘Legitimate’ appeared first on Eurasia Review.

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