Thursday, December 28, 2017

When Washington Assured Russia NATO Would Not Expand

To make that prospect palatable, the Bush administration assured the Soviets that they had nothing to fear from a Western alliance that included a united Germany. NATO no longer viewed the USSR as an adversary. Apart from incorporating the territory of the former East Germany, the alliance was going to stay put. Washington was sensitive to and would respect Russia’s own security interests. So at least U.S. officials claimed.

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NATO’s eastward march commenced, with the alliance eventually incorporating not only former Soviet satellites but even former Soviet republics. In effect, U.S. policymakers responded favorably to the aspirations of Estonians, Latvians, and Lithuanians while disregarding Russian security interests, apparently assuming that Kremlin leaders had no recourse but to concede.

As long as Russia remained weak, that may well have been the case. As if to press home the point, Clinton’s successors even toyed with the idea of inviting Georgia and Ukraine to join NATO—more or less the equivalent of incorporating Cuba and Mexico into the Warsaw Pact back in the bad old days.

At that point, a Kremlin leader less trusting of the West than Gorbachev had been decided that enough was enough. Vladimir Putin, a very nasty piece of work but also arguably a Russian patriot, made it clear that NATO’s eastward expansion had ended. Putin’s 2008 armed intervention in Georgia, annexation of the Crimea in 2014, and multiple incursions into Ukraine beginning that same year elicited howls of protest from the Washington commentariat. Putin, they charged, was trampling on the “norms” of international conduct that were supposed to govern behavior in the post-Cold War world.

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In today’s Washington, where Russophobia runs rampant, it has become fashionable to speak of a New Cold War, provoked by Putin’s aggressive actions. Yet if we are indeed embarking upon a new age of brinksmanship, we can trace its origins to 1990 when Putin was merely a disgruntled KGB colonel and we were playing the Soviets for suckers.

Link here.

Also, here is link to archived diplomatic materials at GWU.

The ‘New Anti-Semitism’

The ‘new anti-Semitism’, we are told, takes the form of criticism of Zionism and of the actions and policies of Israel, and is often manifested in campaigns holding the Israeli government accountable to international law, a recent instance being the Boycott, Divestment and Sanctions (BDS) movement. In this it is different from ‘traditional’ anti-Semitism, understood as hatred of Jews per se, the idea that Jews are naturally inferior, belief in a worldwide Jewish conspiracy or in the Jewish control of capitalism etc. The ‘new anti-Semitism’ also differs from the traditional form in the political affinities of its alleged culprits: where we are used to thinking that anti-Semites come from the political right, the new anti-Semites are, in the eyes of the accusers, primarily on the political left.

The logic of the ‘new anti-Semitism’ can be formulated as a syllogism: i) anti-Semitism is hatred of Jews; ii) to be Jewish is to be Zionist; iii) therefore anti-Zionism is anti-Semitic. The error has to do with the second proposition. The claims that Zionism is identical to Jewishness, or that a seamless equation can be made between the State of Israel and the Jewish people, are false. Many Jews are not Zionists. And Zionism has numerous traits that are in no way embedded in or characteristic of Jewishness, but rather emerged from nationalist and settler colonial ideologies over the last three hundred years. Criticism of Zionism or of Israel is not necessarily the product of an animus towards Jews; conversely, hatred of Jews does not necessarily entail anti-Zionism.

Link here.

George Kennan in 1998 on NATO expansion and Russia

His voice is a bit frail now, but the mind, even at age 94, is as sharp as ever. So when I reached George Kennan by phone to get his reaction to the Senate's ratification of NATO expansion it was no surprise to find that the man who was the architect of America's successful containment of the Soviet Union and one of the great American statesmen of the 20th century was ready with an answer.

''I think it is the beginning of a new cold war,'' said Mr. Kennan from his Princeton home. ''I think the Russians will gradually react quite adversely and it will affect their policies. I think it is a tragic mistake. There was no reason for this whatsoever. No one was threatening anybody else. This expansion would make the Founding Fathers of this country turn over in their graves. We have signed up to protect a whole series of countries, even though we have neither the resources nor the intention to do so in any serious way. [NATO expansion] was simply a light-hearted action by a Senate that has no real interest in foreign affairs.''

''What bothers me is how superficial and ill informed the whole Senate debate was,'' added Mr. Kennan, who was present at the creation of NATO and whose anonymous 1947 article in the journal Foreign Affairs, signed ''X,'' defined America's cold-war containment policy for 40 years. ''I was particularly bothered by the references to Russia as a country dying to attack Western Europe. Don't people understand? Our differences in the cold war were with the Soviet Communist regime. And now we are turning our backs on the very people who mounted the greatest bloodless revolution in history to remove that Soviet regime.

''And Russia's democracy is as far advanced, if not farther, as any of these countries we've just signed up to defend from Russia,'' said Mr. Kennan, who joined the State Department in 1926 and was U.S. Ambassador to Moscow in 1952. ''It shows so little understanding of Russian history and Soviet history. Of course there is going to be a bad reaction from Russia, and then [the NATO expanders] will say that we always told you that is how the Russians are -- but this is just wrong.''

Link here.

Russia as an Enemy of the United States

Indeed, a lot of people have forgotten that Russia also asked to join NATO (under both Gorbachev and Putin) and was rebuffed. Russia wanted IN the club. In fact, it was pathetic how much they wanted in the club and I thought so at the time. The West, steeped in Russophobia, was never going to let them in, and the Russians wasted somewhere between fifteen and twenty years before they got the message that the West, and the US in particular, was implacably hostile and intended to remain so.

Russia has about half the GDP of California. It is a superpower only in terms of nuclear weapons, though its army, technology, and geographic reach mean that it is still a great power.

It has been pushed into the arms of the Chinese, which from a geopolitical POV is ludicrous: Siberia is the most likely point of conflict between the Chinese and the Russians, driven by the realities of climate change, demographics, and aquifer depletion. Siberia has hardly any population, lots of land, and tons of water, and in twenty to thirty years, the Chinese are going to need that water, and in forty years or so they’re going to need the land.

It would have been easy to spin Russia in and make it the Eastern end of West. Instead, it has been made into a foe, and if the hysterics looking for someone to blame for their own electoral failures have their way, made into an actual enemy. (An enemy with enough nukes to destroy the entire world more than once. Sanity suggests picking better enemies.)

Whether or not the majority of Americans “want” this, emergent American behaviour shows this to be the path the US and the West are on.

Those of us who would prefer the world to survive might wish otherwise, but in-group thinking and the death wish are stronger than sanity or reason.

Putin is a result of shock doctrine, imposed by the West. Russian animosity is largely a result of Western actions that the Russians could not but interpret as hostile (including the color revolutions and the Western-backed Ukrainian coup.)

Link here.

Monday, December 25, 2017

What We Don’t Talk about When We Talk about Russian Hacking

The consequence is a spreading confusion that envelops everything. Epistemological nihilism looms, but some people and institutions have more power than others to define what constitutes an agreed-on reality. To say this is to risk dismissal as the ultimate wing-nut in the lexicon of contemporary Washington: the conspiracy theorist. Still, the fact remains: sometimes powerful people arrange to promote ideas that benefit their common interests. Whether we call this hegemony, conspiracy or merely special privilege hardly matters. What does matter is the power to create what Gramsci called the ‘common sense’ of an entire society. Even if much of that society is indifferent to or suspicious of the official common sense, it still becomes embedded among the tacit assumptions that set the boundaries of ‘responsible opinion’. So the Democratic establishment (along with a few Republicans) and the major media outlets have made ‘Russian meddling’ the common sense of the current moment. What kind of cultural work does this common sense do? What are the consequences of the spectacle the media call (with characteristic originality) ‘Russiagate’?

The most immediate consequence is that, by finding foreign demons who can be blamed for Trump’s ascendancy, the Democratic leadership have shifted the blame for their defeat away from their own policies without questioning any of their core assumptions. Amid the general recoil from Trump, they can even style themselves dissenters – ‘#the resistance’ was the label Clintonites appropriated within a few days of the election. Mainstream Democrats have begun to use the word ‘progressive’ to apply to a platform that amounts to little more than preserving Obamacare, gesturing towards greater income equality and protecting minorities. This agenda is timid. It has nothing to say about challenging the influence of concentrated capital on policy, reducing the inflated defence budget or withdrawing from overextended foreign commitments; yet without those initiatives, even the mildest egalitarian policies face insuperable obstacles. More genuine insurgencies are in the making, which confront corporate power and connect domestic with foreign policy, but they face an uphill battle against the entrenched money and power of the Democratic leadership – the likes of Chuck Schumer, Nancy Pelosi, the Clintons and the DNC. Russiagate offers Democratic elites a way to promote party unity against Trump-Putin, while the DNC purges Sanders’s supporters.

Link here.

Friday, December 22, 2017

The U.S. Political System Has Been 'Hijacked'

The authors of the piece note how the Founders of the United States would find the rules that govern the country unrecognizable today.

"The result: America’s political system today would be unrecognizable to our founders. In fact, certain of our founders warned against political parties. John Adams, our second President, said, “There is nothing which I dread so much as a division of the republic into two great parties, each arranged under its leader, and concerting measures in opposition to each other.” Our founders— and most Americans today—would be shocked by the extent to which our democracy has been hijacked by the private and largely unaccountable organizations that constitute today’s political industrial complex."

Link here.

The Plot Against America’s 99%

And yet Republican administrations have persisted in pursuing unsustainable and undesirable tax cuts benefiting primarily the rich, leading to ever-larger deficits and trillions of dollars of additional public debt. The Republicans’ eagerness to pass reckless tax cuts once in power gives the lie to their claims of fiscal rectitude.

Making matters worse, America’s pluto-populist president is peddling a tax plan that will further increase economic inequality at a time when income and wealth gaps are already widening, owing to the effects of globalization, trade, migration, new labor-saving technologies, and market consolidation in many sectors.1

Given that the rich tend to save more than middle- and working-class people, who must spend a larger proportion of their incomes on basic necessities, the Trump tax plan will do little for economic growth; it may even decrease it. And it will add far more to the US’s excessively high public-debt burden. It is fake reform, brought to us by an alt-fact administration and a party that has lost its economic bearings.

Link here.

Monday, December 18, 2017

Taxes, Balance of Payments and the USD Paradox

"Finally, as the last four charts below show, business fixed investment in tangible capital hasn’t been declining because of lack of cash flow, but rather because businesses have preferred to save profits in order to to distribute them to shareholders in the form of dividends and stock buybacks, or invest in R&D. Indeed, the operating cash flow margin for the largest 85% of companies in the United States is at a two-decade high (chart 1), but capex as a percent of operating cash flow is near a two-decade low (chart 2) while dividends and buybacks have been up every year since 2011. Meanwhile, R&D investment as a percent of operating cash flow (chart 4) has been up every year since 2011. This suggests to us that tangible capital investment is a much lower priority to companies than paying shareholders and investing in R&D. Increasing the marginal return on tangible capital investment may be unlikely to change this trend."

Link here.

Saturday, December 9, 2017

The Duplicitous Superpower

It is painful for any American to admit that the United States has acquired a well-deserved reputation for duplicity in its foreign policy. But the evidence for that proposition is quite substantial. Indeed, disingenuous U.S. behavior regarding NATO expansion and the resolution of Kosovo’s political status may be the single most important factor for the poisoned bilateral relationship with Moscow. The U.S. track record of duplicity and betrayal is one reason why prospects for resolving the North Korean nuclear issue through diplomacy are so bleak.

Actions have consequences, and Washington’s reputation for disingenuous behavior has complicated America’s own foreign policy objectives. This is a textbook example of a great power shooting itself in the foot.

And from the "Comments" . . .

The problem though is not hostile intent, it’s lack of intent. As far as I can tell, US foreign policy is merely a side effect of it’s internal policy. It’s like US government only cares about foreign policy as a tool for their internal actions. Any political move is seen through only one lens: how it’s effects will look to their electorate base and corporate sponsors. Is this or that foreign policy move expected to raise our party’s political rating / redirect public’s attention away from current scandal / bring more money to party coffers / whatever? Fantastic, that must be a wise and great foreign policy, let’s totally do it!

Link here.

Some of the trends behind America’s earnings boom and stock market surge are about to change. Investors beware.

"So if earnings growth has been so anemic, why have stocks continued to soar over the past few years—with the S&P 500 rising 29% since September 2014? “It’s all multiple expansion,” says Silverblatt, noting that the price-to-earnings ratio for the 500 has jumped over those three-plus years from 18.9 to the current, super-rich 24.3. Let’s look at the S&P as one big company. Its current annualized earnings of $107 haven’t budged in three years, yet its “price” has risen from 2,018 to 2,602. Hence, investors who three years ago paid less than $19 for $1 of earnings now pay $24.30—an extra $5.30, or an almost 30% premium, for a dollar of earnings."

Link here.