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Dr. Paul Craig Roberts Is A Former Treasury Secretary Who Actually Cares

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[yt_dropcap type=”square” font=”” size=”14″ color=”#000″ background=”#fff” ] H [/yt_dropcap] ere’s an idea – how about appointing a US Treasury Secretary who actually cares for the ultimate welfare of the American People and the United States of America for a change, as opposed to using his position as a “revolving door” a la the cadre of treasonous “America-last” gaggle of premeditated criminals merely taking a leave of absence from their full-time jobs at Goldman Sachs and Covington & Burling LLP?

The American economy and its engineered 2008 crash wrought by such “financial luminaries” as Robert Rubin, Larry Summers, Gene Sperling, Hank Paulson, Tim Geithner, and others, has left a lasting effect, if not almost the total destruction of, the American Economy.

Much has been written about how the above cabal literally, beginning with when they were working under the Bill Clinton presidency, forced and coerced Mr Clinton to repeal the Glass-Steagall Act, which was the barrier separating risky investment bank behavior from “mom and pop” checking accounts and savings, thus essentially imbuing these massive financial institutions to proceed unfettered towards the shark-infested waters of bad deals, risky investments, speculative spending, and other crazy financial stunts, for “high-risk/high-yield” Pyramid and Ponzi schemes more akin to a night at a seedy Las Vegas casino, rather than what should supposedly have been judicious, well-planned, and risk-averse behavior on behalf of these banking behemoths.

Simultaneously, these same organized criminals used the Housing and Urban Development (“HUD”) headed up by then chief Andrew Cuomo to put enormous pressure on such loan entities as Fannie Mae and Freddie Mac to lower and reduce the credit requirements to purchase a million dollar home, so that every burger flipper across America could buy a financial and un-payable “albatross” around their neck, and when the Federal Reserve eventually removed cash liquidity from the markets, all of these new “homeowners” literally found themselves on a merry-go-round that suddenly stopped, with their monthly mortgage payments coming due, but no jobs or cash to pay them, thus resulting in tens of millions of massive housing defaults across the country.

Even more sickeningly, Goldman Sachs and others only a few years earlier created a “reverse credit swap derivative,” betting on the ultimate failure within the housing market, again earning countless billions when this inevitable “housing bubble” burst.

Are these the same kind of people we want back in the United States Treasury, engineering our “economic recovery?”

These bankers, unfettered by the protections guaranteed by Glass-Steagall, could feel confident that even if their bad investments went completely and totally south, that they would eventually be bailed out by none other than the American taxpayer – and that’s exactly what happened.

But what about a former Assistant US Treasury Secretary, who previously was appointed by, and served under, one of the greatest U.S. Presidents of all time, Ronald Reagan, and who was actually instrumental in pulling America out of the quagmire of idiotic and out of control government spending, a lazy un-stimulated economy, and the general malaise of the 1970s “disco economy” manned and presided over by Democrat President Jimmy Carter?

That individual is none other than the great Dr. Paul Craig Roberts, hero to the 300 million strong American people, personal mentor to hundreds of thousands, and demonstrated enemy of the Oligarchy/Plutocracy Deep State Elite, the latter of whom have been shown the proverbial “door” by the American people in their overwhelming support of President-Elect Donald J. Trump.

The American People were able to hoist Donald Trump to the presidency even in the face of the overwhelming “cheating mechanisms” of the Deep State Oligarch Elite with their complete and total brainwashing control of the Mainstream Media, the awesome buying power of the international bankers, the co-opting of the vast majority of our legislative (senate and congress)/judiciary/executive branches, the “black bag/covert operations/color revolutions” of Deep State agent provocateurs such as George Soros who previously used to only direct his regime change operations against foreign governments rather than fomenting “purple” revolutions here at home?

Dr Paul Craig Roberts has been critical of the United States Department of the Treasury and the U.S. financial regulatory authorities – particularly of the actions of the Federal Reserve System – from former Chairmen Alan Greenspan and Ben Bernanke’s terms to current Chairwoman Janet Yellen via quantitative easing policies and low interest rates, the latter of which he has argued (due to his view that official government data is biased) are actually negative interest rates.

One only has to peruse the countless and brilliantly incisive books and articles penned by Dr. Paul Craig Roberts over the past few decades, and especially within the past few years, freely available on the internet and in hard book format, to clearly and easily discern just what this man stands for, what his expertise is, how much he loves the United States of America, how much he values peace and the avoidance of “stupid foreign wars,” his support, hope for, and measured loyalty to the incoming Donald Trump Administration (for Trump, “loyalty is key”), his overall and general distrust for the U.S. Government and the awesome power it yields, his suspicion over the latest du jour “terrorist attacks” all over the world which he, as do the vast majority of Americans, believe are nothing but “false flags” designed to keep Americans and the rest of the global populace afraid and compliant, ever ready to sacrifice and un-yieldingly relinquish even more of their God-given human rights, civil liberties, and constitutional protections for the sake of “state-sanctioned security” from the fabricated “boogeymen” of the Western/Saudi/Israeli/Turkish Intelligence Services known as ISIS or Al Qaeda.

His written works have also addressed and criticized outsourcing, economic deregulation, privatization of social services, Wall Street finance fraud and lax enforcement of environmental protection laws, as well as been a vocal opponent of taxing social-security payments, holding that this amounts to a “tax on a tax” or privatizing social-security believing this would create an opportunity for speculators to play with and lose the hard-earned savings of retirees.

There could be no better ally of the American People (and the Donald Trump administration) within the United States Treasury than Dr. Paul Craig Roberts, as he would be “our man within the US Treasury,” and would take control and design the much anticipated economic recovery, so badly needed by the citizenry.

He has already done it before, successfully, under the Reagan Administration, and he could easily and handily do it again under Trump.

Dr Paul Craig Roberts was born on April 3, 1939, and is often times described as an American economist, journalist, blogger and former civil servant.

He reached the height of his government career when he became the United States Assistant Secretary of the Treasury for Economic Policy under President Reagan in 1981.

In office he and his staff successfully combated the stagflation (price-inflation and stagnation) then plaguing the American Economy.

Tighter monetary policy was used to restrain inflation, in addition lower marginal tax rates were used to increase the rewards to work and investment.

In recognition, he was awarded the US Treasury’s Meritorious Service Award for “outstanding contributions to the formulation of United States economic policy.”

Dr Paul Craig Roberts has also been a huge supporter of common human decency, both in the United States and abroad, as a supporter of the human rights of the population of the West Bank, and he has criticized Israel’s policies and harsh actions against the Palestinians as well as speaking out against what he calls the Israel Lobby’s malign influence within US politics and academia.

Dr. Roberts is a graduate of the Georgia Institute of Technology (B.S. in Industrial Engineering) and holds a PhD from the University of Virginia.

He was a postgraduate at the University of California, Berkeley, and at Merton College, Oxford University.

From 1975 to 1978, Roberts served on congressional staff. As economic counsel to Congressman Jack Kemp, he drafted the Kemp-Roth bill (which became the “Economic Recovery Tax Act of 1981). He played a leading role in developing bipartisan support for a supply-side economic policy.

Due to his influential 1978 article on tax burden for Harper’s Magazine while economic counsel to Senator Orrin Hatch, the Wall Street Journal editor Robert L. Bartley offered him an editorial slot.

He wrote for the WSJ until 1980.

He was a senior fellow in political economy at the Center for Strategic and International Studies, then part of Georgetown University.

From early 1981 to January 1982, Roberts served as assistant secretary of the treasury for economic policy, wherein President Ronald Reagan and Treasury Secretary Donald Regan credited him with a major role in the Economic Recovery Tax Act of 1981, and he was awarded the Treasury Department’s Meritorious Service Award for “outstanding contributions to the formulation of United States economic policy.”

After his time in government he turned to journalism, holding positions of editor and columnist for the Wall Street Journal, columnist for Business Week, and the Scripps Howard News Service as well as contributing editor to Harper’s Magazine.

In addition to numerous guest and visiting-professorships at US universities, he was professor of business administration and professor of economics at George Mason University and was the inaugural William E. Simon Chair in Political Economy at Georgetown University, serving for 12 years.

From 1993 to 1996, he was a Distinguished Fellow at the Cato Institute.

He also was a Senior Research Fellow at the Hoover Institution.

This is another thing Donald Trump and Dr Paul Craig Roberts have in common – they are both former “insiders” who turned against the Establishment as an overwhelming gesture of heroic self-sacrifice to the American people, rather than continuing to “play the game” in order to keep enriching their own pockets at the expense of the American People and the United States.

Dr Roberts also has the great love and respect of foreign nations, governments, and dignitaries as did other previous and legendary US Government/Statesmen luminaries in centuries past, as Benjamin Franklin and Thomas Jefferson – in 1987 the French government recognized him as “the artisan of a renewal in economic science and policy after half a century of state interventionism,” and inducted him into the Legion of Honor on March 20, 1987.

The French Minister of Economics and Finance, Edouard Balladur, came to the US from France to present the medal to Roberts.

In 1992, Roberts received the Warren Brookes Award for Excellence in Journalism from the free-market American Legislative Exchange Council (ALEC).

In 1993 the Forbes Media Guide ranked him as one of the top seven journalists in the United States.

In 2015, the Mexican Press Club awarded Dr. Roberts its International Award For Excellence In Journalism in recognition of his lifelong commitment to truth and unbiased-reporting in exposing the inner workings of the global economic power-structure.

Dr Paul Craig Roberts has written that “true conservatives” were the “first victims” of the neo-cons of the Bush administration.

He has criticized the Bush tax cuts, believing they “were nothing but a greedy grab” and were “not necessary policy adjustments but rewards to the mega-rich who underwrite political careers and provide grants to economic departments and think tanks,” however, also stating that “they are not a significant cause of today’s inequality.”

Of the 9/11 Commission Report, Dr Paul Craig Roberts wrote in 2006, “One would think that if the report could stand analysis, there would not be a taboo against calling attention to the inadequacy of its explanations.” (see Criticisms of the 9/11 Commission Report).

He has asserted there is a large “energy deficit” in the official account of the collapse of the three WTC buildings, and this deficit remains unexplained.

This is yet another, out of thousands, of common ground similarities currently shared by President-Elect Donald Trump and Dr Roberts – truly a government partnership/marriage made in heaven.

Roberts commented on the “scientific impossibility” of the official explanation for the events on 9/11, as did Donald Trump in a television interview when the Towers first went down in 2001.

On August 18, 2006, he wrote: “I will begin by stating what we know to be a solid incontrovertible scientific fact. We know that it is strictly impossible for any building, much less steel columned buildings, to ‘pancake’ at free fall speed. Therefore, it is a non-controversial fact that the official explanation of the collapse of the WTC buildings is false…. Since the damning incontrovertible fact has not been investigated, speculation and ‘conspiracy theories’ have filled the void.”

He has written or co-written 12 books, contributed chapters to numerous books, and published many articles in scholarly journals.

Dr Paul Craig Roberts, like President-Elect Donald Trump, has ultimate intestinal fortitude, as is evident by his countless papers, treatises, books, and articles, where he demonstrates an All-American fearlessness coupled with ingenuity, brilliance, common-sense, and stalwartness totally absent in our treasury departments over the past few decades.

President-Elect Donald Trump should give due consideration and thought to Dr Paul Craig Roberts to be United States Secretary of the Treasury, a living legend who is truly a testament to everything that is, and always has been, Great about America.

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Air Balloon and U.S.-China Relations

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Credit: Petty Officer 1st Class Tyler Thompson/US Navy

The story of the Chinese Automatic Drifting Balloon (ADB) violating the U.S. airspace in late January–early February 2023 will be a symbolic marker for a new phase of deterioration in the US-China relations.

The relations were rapidly eroding throughout 2022 and early 2023. In some aspects, U.S.-China relations in 2022 evoked obvious associations with U.S.-Russian relations in 2021. While trying to engage in cooperation with Beijing on certain issues (particularly on Ukraine), Washington simultaneously kept imposing increasingly painful sanctions against the country.

Among important steps recently taken in this direction, there have been restrictions on supplies of advanced microchips and equipment for their production to China, effective since October 2022, as well as the pressure exerted on Japan and the Netherlands (key manufacturers of equipment for the microelectronics industry) to join these restrictions. Licenses to supply virtually any components and equipment to China’s Huawei have been terminated, and a significant number of sanctions were imposed on smaller Chinese companies and individuals.

Most of the Chinese measures have been defensive and involved steps to ensure the security of production chains and the national economy. In the meantime, Beijing is also discussing measures to limit certain items of Chinese exports, with potential thermonuclear consequences. Semi-finished products, raw materials and equipment for the production of solar panels can be affected—given China’s monopoly on a number of products, this could be a shock for the renewable energy industry in the West.

The visit of U.S. House Speaker Nancy Pelosi to Taiwan in early August 2022 played a disastrous role in the military and political situation in East Asia. That trip, despite repeated warnings from Beijing, triggered a period of rapid increase in Chinese military activity around Taiwan, which still continues.

Chinese activities include numerous live-fire exercises in the waters around the island, large groups of combat aircraft and drones flying along the island’s perimeter, and systematic violations of the median line in the Taiwan Strait by PRC ships and aircraft. For its part, the U.S. is increasing military aid to Taiwan, although it is becoming increasingly difficult to do so against the backdrop of ongoing hostilities in Ukraine.

The November 2022 meeting of Xi Jinping and Joseph Biden in Bali was similar in content to the Geneva summit of Biden and Vladimir Putin in June 2021. We saw similar attempts to achieve at least partial stabilization of relations, establishing rules of the game, unblocking channels for political communication by creating joint working groups, and the same predictable failure. So far, we can only hope that the final outcome of these efforts will not be so disastrous as the one between Moscow and Washington.

The U.S. Secretary of State Anthony Blinken’s visit was canceled due to the balloon incident, while it was supposed to restore the ruined channels of dialogue. The U.S.-Chinese relation is still lagging far behind the U.S.-Russian relationship in matters of mutual alerting, preventing dangerous incidents, and maintaining emergency channels of communication, where relevant experience has continuously been accumulated since the 1960s. Given the rapid progress of China’s transformation into a new nuclear superpower, conservation of this situation could be dangerous.

Nothing more was expected from Blinken’s visit – no U-turn in relations, no strategic deals, including those concerning Beijing’s positions on the Ukrainian issue. Now, the visit has been postponed indefinitely and the dialogue has been suspended amid the rapidly deteriorating security situation in the Pacific.

The circumstances of the very incident with the Chinese ADB over the United States allow us to take a fresh look at the behavior of China’s leadership in the heating confrontation with the United States. According to U.S. military statements, the ADB shot down on February 4, 2023 was the fourth Chinese apparatus to violate U.S. airspace. The previous three ADBs that visited the U.S. during Donald Trump’s tenure were not detected by U.S. airspace controls in time, and the Americans became aware of their existence belatedly via intelligence channels.

If this is true, China is deliberately and systematically doing what the USSR never afforded during the entire Cold War—flying reconnaissance aircraft directly over U.S. territory. For its part, the U.S. used ADBs on a large scale for flights over the USSR and the PRC in the 1950s and 1980s, and the explanation of their purpose was exactly the same as that used by the Chinese now: border violations due to navigation error or malfunction, meteorological research, observations of airstreams, etc.

China’s contemporary political culture attaches great importance to careful observance of the principle of reciprocity, avoiding situations that could be interpreted as Beijing’s recognition of its unequal position vis-à-vis any major power. This is partly due to the severe historical trauma of the “century of humiliation” in 1840–1945, a time of foreign domination over China.

The current use of the ADB over the United States is by no means a retaliation against historical grievances. Rather, it is a response to some U.S. actions within its “freedom of navigation patrols” in the South China Sea, where U.S. ships and aircraft deliberately violate 12-mile territorial water zones around a number of Chinese-controlled islands. The Americans justify their behavior by saying that these Chinese islands are artificial and do not create rights to territorial waters.

Surely, China believes that the Americans are violating the integrity of its national territorial. From China’s perspective, the U.S., as a power external to the region, should not interfere in any of its territorial disputes with the countries of Southeast Asia. Besides, the high activity of U.S. reconnaissance aircraft along China’s borders—and sometimes over disputed water bodies—has long been a matter of Chinese concern.

From China’s perspective, the use of ADB over U.S. territory may well look like an appropriate response to the U.S. actions. Chinese leaders may have seen this action as a necessary step to confirm China’s status as a great power equal to the United States, even if only a limited number of people knew about these operations for the time being.

The political motivation behind the use of the ADB can also be discerned in the Chinese response to the incident. In a normal situation, if the balloon lost control and inadvertently entered (or risked entering) U.S. airspace, the owner would have contacted the Americans, provided the necessary data and information, and tried to avoid a fallout.

China, for its part, responded to the incident only twelve hours after Pentagon’s statement to that effect. There was a dry statement from the PRC about the loss of control of the weather balloon due to force majeure, for which “regret” was expressed.

Shortly thereafter, China declared that it would not tolerate “hype and speculation” about the balloon and accused the United States of indiscriminate and excessive use of force after it was shot down, threatening some “consequences.”

Under the circumstances, it is difficult to assess this as anything other than China’s deliberate humiliation of the United States as well as demonstration of its own strength and confidence. The Chinese consciously chose this course of action in the run-up to Blinken’s visit—now, as the conflict in Ukraine is escalating, the U.S. is more interested in dialogue than the PRC.

The Americans had to choose between continuing the dialogue in a poorer bargaining position after the humiliation they had endured and abandoning the dialogue altogether. The reaction of American public opinion predetermined the choice for the latter. However, this decision was apparently not easy to make.

The visit has not been canceled, but postponed, and the U.S. will probably look for opportunities to carry out negotiations in the not-too-distant future while saving face. Alongside with Blinken’s visit, there were plans for an even more important visit to China, to be paid by U.S. Treasury Secretary Janet Yellen. On February 9, 2023, Yellen announced that she was still planning a trip to China, although it was not yet possible to give a date.

The incident has shown that the Americans are not overly prepared for a tough confrontation with a comparable superpower as soon as it stops playing at giveaway with them. As it turned out, the few previous Chinese ADBs had not been detected at all, and the last one was shot down only after it had crossed the entire U.S. territory, flying over, among other things, an intercontinental ballistic missile base.

There is nothing surprising or particularly embarrassing about it: the ADB is an extremely difficult aerial target because of its low radar visibility, extremely low speed, and a very high flight altitude. The Soviet Union has been practicing its tactics against ADB for decades. The ability to counter such targets was taken into account in the design of some Soviet air defense interceptors. These include, for example, the MiG-31 still in service in Russia, which has the highest maximum flight altitude among modern fighters and is equipped to fight balloons with a GSh-23-6 cannon.

In the United States, reconnaissance ADBs did not show up during the Cold War, simply because the Soviet Union lacked the necessary technical capabilities in the early decades of the confrontation, and the late-Soviet gerontocracy was later afraid to respond in kind to violations of its airspace. Now, the Americans faced a more active opponent and have yet to learn many new skills.

The traditional U.S. propensity to make up for real-world failures with media victories was not very convincing either. Covering the incident, U.S. propaganda followed two lines. They claimed that, first, the Chinese balloon could not have caused any serious damage to the U.S. compared to China’s existing reconnaissance satellites, and second, that the vehicle was not shot down so as not to pose a threat to civilians on the ground.

The second claim is patently absurd: a significant part of the Chinese ADB route passed over deserted or sparsely populated areas, where the risk of harm to civilians was equal to zero. As for the former, the ADB surely remains a valuable reconnaissance tool that can significantly supplement satellite data. For its part, the U.S. has made extensive use of balloons in the operations against Iraq and Afghanistan.

The reconnaissance satellite operates at altitudes of hundreds of kilometers above the ground, while the balloon does so in the altitude range of 20–30 km. This gives it additional capabilities to conduct electronic reconnaissance and detailed ground surveys. The ADB is capable of monitoring atmospheric chemistry and making other measurements useful for the reconnaissance of nuclear-weapons-related targets. Finally, the balloon is capable of remaining over the same territory for long periods of time, tracking the situation there dynamically, and its flight time over an area is not predictable, unlike that of satellites.

Was the incident with the balloon an intentional attempt to disrupt Blinken’s visit from the very beginning? Hardly. If the Chinese had flown around the U.S. three times in the Trump presidency with their ADBs and got away with it, it would make sense to continue this successful practice. When the “balloon case” became public, the Chinese might have chosen an escalatory course of action based on their view of the situation. It is likely that Beijing concluded that it would not lose with any possible U.S. reaction to the incident, and this is probably true.

From our partner RIAC

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Can Lula walk the tightrope between Washington and Beijing?

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Image source: lula.com.br

As Brazil’s New President Luiz Inácio Lula da Silva (popularly known as Lula) prepares to visit China later this month, maintaining neutrality would be difficult as the winds of change enwrap  Beijing.

Brazil is Back

President Lula’s coming to power has marked a decisive shift in Brazilian foreign policy. With the Pink Tide resurging in South America, the new President has clearly spelled out his foreign policy aims: restoring Brazil’s neutrality and importance in international affairs at par with both the West and East after nearly 4 years of impasse under his predecessor Jair Bolsonaro, who had adopted a Sinophobic, pro-Trump foreign policy.

Brasilia’s 39th President, who previously presided over the office between 2003-2010, will have a lot to talk about as he visits his nation’s largest trading partner that imported $89.4 billion in 2022 mostly in soy and iron ore which added a surplus of $28.7 billion to Brazil’s coffers. Boosting the economic partnership with China will be a priority for Lula, who intends to integrate South America into a closely held economic unit. Another important item on the agenda includes the appointment of former President Dilma Rousseff as the new BRICS Bank president.

Lula and the West

Lula had rattled swords with Washington on several occasions during his previous tenure such as alleging the United States for reducing South America to its “backyard” by intervening in its internal politics as well as by opposing the Iraq War. Even though he recognises the importance of maintaining good relations with the superpower up North; several of Lula’s moves including sending a delegation to Maduro-led Venezuela, refusing to sign a UN Human Rights resolution condemning human rights violations in Nicaragua, allowing Iranian warships to dock at Rio de Janeiro, maintaining an ambiguous approach on the Russia-Ukraine War and refusing to send arms to Kyiv, dubbing the ‘Balloongate’ incident a bilateral issue  between the US and China and defining  the Taiwan issue as Beijing’s internal matter, have deeply irked the West.

While tensions remain, Lula’s focus on combating climate change and call for saving the Amazon have earned a thumbs up from the Biden administration as the former’s election to power comes as a breath of fresh air after his staunch “Trump of the Tropics”  predecessor adopted a not-so-friendly approach towards Biden’s entry in the White House. Lula understands Washington’s support is required and hence it was a top spot on his foreign visits list. Lula and Biden held talks amidst a cordial ambience and vowed to reboot bilateral ties by promising to protect democracy and combating climate change.

Winds of Change in Beijing

However, winds of change in the East have dispersed the clouds of ambiguity and China now stands more vocal, more critical and more confident in dealing with the United States.

The recent session of the National People’s Congress, which won Xi Jinping a never-seen-before third term as the President, saw him voicing his criticism against “Washington-led attempts” to “contain, encircle and suppress” China which pose ” serious challenges to its development” (“以美国为首的西方国家对我实施了全方位的遏制、围堵、打压,给我国发展带来前所未有的严峻挑战。”). Sino-US relations have been in the trough since President Trump’s tenure with the recent point of clash being the ‘Balloon incident’ which made Anthony Blinken call off his visit to Beijing.

Xi recently unveiled his new 24 Character Foreign Policy which, Dr. Hemant Adlakha believes, marks “China’s new foreign policy mantra in the ‘New Era’ ” acting as its “ideological map to attain national rejuvenation by 2049”. The characters “沉着冷静;保持定力;稳中求进;积极作为;团结一致;敢于斗争 ” which translate as “Be calm; Keep determined; Seek progress and stability; Be proactive and go for achievements; Unite under the Communist Party; Dare to fight” are set to replace Deng Xiaoping’s 24 Character Strategy  focussed on never seeking leadership and assuming a low profile.

China’s confidence is further boosted by its successful attempt to broker peace between Saudi Arabia and Iran, who have been staunch rivals for the past many years. With the handshake that brought the Sunni Arab Kingdom and the Shiite Persian theocracy together, Beijing has garnered accolades from nations across the region and is all set to play a greater international role by not just pulling American allies such as Riyadh to its side but also through actively putting forth its plans to end wars with Xi all set to pay Putin a visit over the Russia-Ukraine War before he meets Lula at Beijing. Lula too eagerly anticipates what Beijing has to say as he told German Chancellor Olaf Scholz “it is time for China to get its hands dirty”.

Neutrality no more?

If the state of Sino-US relations does not improve, things would get hard for many leaders like Lula who seek to balance between the two superpowers. Lula knows  neutrality is his best bet but money matters– as his former Foreign Minister Celso Amorim noted “Our surplus with China—and I’m talking just about our surplus—is bigger than all of our exports to the United States. It is impossible not to have good relations with China.” Isolating  China, with which Brazil has had a long strategic partnership since the 1990s, at the expense of moving closer to the US might come hard on the purse and exacerbate the many economic challenges he faces. Nor can Washington be isolated– not just because of the economic necessities but also in the face of challenges from far-right forces that both Lula and Biden face.

Lula realises the risks of placing all his eggs in one basket but would he be left with the choice to divide them equally into both? The issue is bound to get stickier but if he successfully manages to escape the quagmire of the unfolding great power rivalry, Lula will set a precedent for not just South America but nations across the globe. The only viable solution would be to strengthen regional alliances in Latin America and boost partnerships with  developing nations like India while using the collective strength to push Beijing and Washington to come together.

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The Malvinas feud as a Global Constant

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Image source: buenosairesherald.com

As an event gets bigger, it’s more likely that interesting things will happen behind the scenes, that is, in unplanned activities.

The seventh meeting of G20 foreign ministers in India in 2023 confirms this. Bilateral meetings between Qing-Jaishankar, the Blinken-Lavrov dispute, and the meeting between Santiago Cafiero and James Cleverly, during which the former notified the latter of the end of the Foradori-Duncan agreement.

On March 2, 2023, by rescinding the Foradori-Duncan agreement, the Argentine government de facto reopened one of the most important territorial disputes in the Western Hemisphere, perhaps the most important, and did so in the most theatrical way possible: at the G20, the main North-South dialogue platform.

What was the purpose of the Foradori-Duncan agreement?

The idea behind the agreement was for the Argentine government to renounce its claims and any serious discussion regarding the territorial dispute over the sovereignty of the Malvinas (Falklands) Islands and the adjacent territories in the South Atlantic. Instead, the Argentine government would adopt a position of claiming “light sovereignty” in order to obtain benefits, mainly economic ones, through joint exploitation of the natural resources of the islands and adjacent territories in the South Atlantic with the United Kingdom (UK), as well as through British investments in the country.

In practice, this agreement implied the Argentine government’s resignation to discuss sovereign rights over the Falkland Islands and their adjacent territories in the South Atlantic. It can be inferred that this was a disguised surrender clause by the government of Mauricio Macri to continue with Argentina’s sovereign claim over the Malvinas Islands.

The purpose of the Foradori-Duncan agreement was in line with the foreign policy stance of the Macri administration (2015-2019), which had a marked pro-Western (and more Atlanticist) position than previous governments (Kirchnerism 2003-2015).

This geopolitical code (if we can speak of the existence of a “Macrista geopolitical code” coming from the geopolitical code of the traditional Argentine ruling class) consisted of a series of agreements (tacit and official) of Argentine resignation and subordination to traditional Western powers (of which the Foradori-Duncan agreement was one of its greatest exponents) which aimed –in theory– to obtain greater economic benefits and a renewal of the country’s public image in the supposed “international community.”

These types of foreign policy positions would be a constant of the Macri government. Even the Argentine scholar Juan Gabriel Tokatlian has conceptualized such a stance as “Concessive Peripheral Unilateralism” to define the foreign policy of the Macri government [1].

In practice, these ideas and plans, were shown to be totally ineffective and unproductive. Argentina practically did not receive economic benefits from such positions, nor did its public image have a significant and positive international projection. And the Foradori-Duncan agreement is the most scandalous example of this reality.

Why did the Argentine government of Alberto Fernández decide to end such an agreement?

The first explanation is the internal conformation and political identity of the government of Alberto Fernández, which logically demanded a change in the previous government’s (Macri) stance on the Malvinas agreements, his predecessor and opponent. But this inference raises another question: Why were such measures not taken before? The answers to this question are only conjectures.

Since the end of the Malvinas War (1982) until today, except for the years of the Menem governments (1989-1999), Argentina’s bilateral relationship with Great Britain has always been marked by a strong “Malvinense” [2] component on the agenda of their interaction, which has often led to high-pitched disputes between both parties. The “agenda” of the Malvinas cause was a constant trend of the Kirchnerist governments (2003-2015), such claims were made, denouncing British illegal occupation of the Falkland Islands on numerous occasions in various international forums, bilateral meetings, and multilateral forums.

But as mentioned earlier, the Macri government would have a diametrically opposed position to its Kirchnerist predecessors regarding the Malvinas question. However, the reality of the country and its foreign policy changed again when Argentina “presented” a new government in 2019, with Alberto Fernández as the head of the presidency.

The government of A. Fernández has an eclectic political character [3], as a result of a coalition between several political sectors, so the foreign policy of his government also reflects the heterogeneous internal conformation of the government coalition sectors.

In such conformation, sectors such as Kirchnerism, as well as more orthodox Peronist sectors, are present, both of which have traditionally had a more                       “Post-Western” stance, aiming to “rewrite the Argentine geopolitical code” and the vectors of Argentine foreign policy, projecting an alternative foreign policy, in first place towards their own region: South America, Ibero-America, the Caribbean, and in more modern times, especially towards the Global South, the BRICS, and Asia. In such guidelines, the action of rescinding the Foradori-Duncan agreement was logical. But logic also makes us wonder, why were such measures not taken before? Such questions enter the realm of speculation.

Another analysis could be given in an electoral key reading, this year 2023, presidential elections will be held in Argentina, and Alberto Fernández has expressed on several occasions through words and gestures [4], that he is willing and interested in being re-elected as the head of the Argentine executive branch.

Facing a public image tarnished by the covid-19 pandemic, and mainly a negative macroeconomic situation, the electoral nature of this foreign policy measure cannot be ruled out: the Malvinas cause is a cause that mobilizes emotions in Argentine society and remains a deep wound to national pride, and is a valid rhetorical and practical tool to antagonize the Argentine opposition (liberals and conservatives), which has never had (and perhaps never will have) a firm geopolitical stance nor interest in the Malvinas question.

Also, the reading of tensions within the coalition of the current Argentine government can’t be ruled out, in this last aspect, this measure could be read as a gesture of balance from the “Albertismo” towards Kirchnerism, a sector of the government in which many leaders believe that the sector identified with the president has geopolitically leaned too much towards Washington and the West since the 2022 debt agreement with the IMF and the war in Ukraine.

Argentina informed the British of its decision during the G20 foreign ministers’ summit, which was dominated by the BRICS. Is it a coincidence that such a measure was taken at one of the most representative events of the Global South?

it clearly cannot be considered a coincidence.

The symbolic weight of such an action, in such a context, must be clearly considered. The G20 has a dual character as the main forum in which traditional (Western) powers dialogue but also reflects their tensions and antagonisms with emerging powers and peoples, including those of the so-called Global South.

With tensions between former metropolis countries and former colonies that make up the G20, and which are now emerging in material capabilities, a post-colonial and decolonial reading cannot be ruled out, and therefore a strong message from Argentina to the world’s emerging powers and the Global South.

Did China have any influence on the finalization of the pact?

No, there is no such “Chinese hand” that has driven such a measure by the Argentine government. These are paranoid arguments with a stubborn anti-Chinese bias that also ignores Argentina’s own reality. To put it plainly, if we use common sense, the decision was not elaborated nor driven from Beijing.

As mentioned earlier, the issue of the Malvinas is a deeply rooted national cause in Argentine society, and a constant in the foreign policy of Kirchnerism, which today is part of the coalition that compose the current Argentine government, which with such measures such as revoking the Foradori-Duncan agreement seeks to                “retake the ownership of the Malvinas and South Atlantic issue in its agenda,” marking a clear differentiated stance from the current political opposition (Juntos por el Cambio) that made such a pact in the previous presidential term.

The decision was not elaborated nor driven by Beijing, and in any case, recent and clear positions of support for Argentina’s sovereign claim in the Malvinas Islands by powers such as China [5] and Russia [6] were considered within the decision-making process to take such measures. Therefore, the positions of Beijing and Moscow influenced, but did not condition or generate, Buenos Aires’ decision.

The future of the Malvinas Question

It’s very difficult to envision a future scenario for such a specific and complex issue, especially in the long term. But a prospective scenario can be envisioned in the short term, which is basically and probably that the situation will not change significantly under current conditions. Unless the world is altered by seismic events.

It’s highly unlikely that we will see a dialoguing UK government in the short and medium term that is willing to negotiate the sovereignty of the Falkland Islands. And it is similarly unlikely to see a future Argentine government, especially if it has the characteristics of a Peronist, Kirchnerist, or progressive government, openly giving up its claims to the sovereignty of the Falkland Islands.

Such a proposition would surely change if there were a liberal-oriented government in Argentina, such as Mauricio Macri’s.

The problem with the current Argentine government, as well as future ones, regarding the Malvinas dispute, is that the country does not have, and will not have in the short and medium term, the set of soft and hard capabilities (economic, diplomatic, military, ideological influence) to press and force the UK hard enough to revise its traditional stance on the occupation of the islands. At least until the current balance of power and the position of emerging powers, such as China, would consolidate even further in the world order.

But in any case, such changes and opportunities will depend on the international context and the agency of third parties, which are independent variables for the positions that future Argentine governments may take.

Most experts in international relations and geopolitics agree that the territorial dispute over the Falkland-Malvinas Islands between Britain and Argentina will not have an easy or predictable resolution in the short term.

Some experts point out that the strategic geographical position of the Malvinas Islands and the presence of significant natural resources in the area, such as fishing and hydrocarbons, make the dispute even more complicated.

Moreover, many experts believe that Britain’s position has been strengthened in recent years thanks to the exploitation of the area’s natural resources and the lack of a clear strategy on the part of Argentina to resolve the dispute.

A hypothetical Chinese presence in the region, through the southern Argentine city of Ushuaia, through the construction of a logistics hub, has added an intervening element that makes it even more complex to envision a prospective scenario [7].

However, some experts believe that the issue of the territorial dispute over the Falkland Islands, Argentina’s position is legitimate, which has won it great support and sympathy among peoples and emerging powers, most of them with a colonial past [8].

References

[1] Tokatlian, J. G. (2018, 2 de febrero). Relaciones con EEUU: ¿nueva etapa? (Relations with the US: a new phase?) Clarín.
https://www.clarin.com/opinion/relaciones-ee-uu-nueva-etapa_0_rka7ze-UM.html

[2] Porto, J. M. (26/03/2022). Despite diplomatic ups and downs, the Malvinas claim became a state policy. Telam. https://www.telam.com.ar/notas/202203/587606-diplomacia-soberania-argentina-islas-malvinas.html

[3] In its composition as a coalition, including important elements of what might be called “Centre-Right” sectors that have Western – especially Washington – affinities.

[4] Its relevant to remember that on 22 February Alberto Fernandez led a public act in situ celebrating 119 years of Argentine presence in Antarctica. “Alberto Fernández visits Antarctica“. Sputnik. (23/02/2023). https://sputniknews.lat/20230223/alberto-fernandez-visita-la-antartida-1136141105.html

[5] Joint Statement between the Argentine Republic and the People’s Republic of China on Deepening the Argentina-China Comprehensive Strategic Partnership. (06/02/2023). https://cancilleria.gob.ar/es/actualidad/noticias/declaracion-conjunta-entre-la-republica-argentina-y-la-republica-popular-china

China’s support for the Malvinas deepens a relationship with many agreements. Telam. (03/07/2021). https://www.telam.com.ar/notas/202107/560027-apoyo-china-malvinas-cada-vez-mas-explicito-profundiza-relacion-muchos-acuerdos.html    

[6] United Russia leader Medvedev celebrates Argentina’s termination of Foradori-Duncan agreement. Sputnik. (2023, March 6). https://sputniknews.lat/20230306/el-lider-de-rusia-unida-celebra-que-argentina-haya-terminado-el-acuerdo-foradori-duncan-1136503626.html   

Putin defended Argentina’s sovereignty over Malvinas and took aim at Boris Johnson and Margaret Thatcher. Política Argentina. (2022, May 30). https://www.politicargentina.com/notas/202206/44954-putin-defendio-la-soberania-argentina-sobre-malvinas-y-le-tiro-a-boris-johnson-con-margaret-thatcher.html

[7] The details of the Ushuaia Logistics Hub to supply Antarctica. El Cronista. (24/12/2021).
https://www.cronista.com/economia-politica/exclusivo-los-detalles-del-polo-logistico-de-ushuaia-para-abastecer-a-la-antartida/  

An Antarctic logistics hub: official plan opens the door to strategic partners. El Cronista. (11/10/2021).
https://www.cronista.com/economia-politica/un-polo-logistico-para-la-antartida-el-plan-oficial-que-abre-la-puerta-a-socios-estrategicos/       

[8] The Group of 77+China gave strong backing to Argentina’s position on the Malvinas Islands question. Telam. (2022, November 12). https://www.telam.com.ar/notas/202011/534875-el-g77china-dio-un-fuerte-respaldo-a-la-posicion-argentina-en-la-cuestion-malvinas.html

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