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The Geostrategy that Guides Trump’s Foreign Policies

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According to Alastair Crooke, writing at Strategic Culture, on June 5th“Trump’s US aims for ‘domination’, not through the globalists’ permanent infrastructure of the US defence umbrella, but through the smart leveraging of the US dollar and financial clearing monopoly, by ring-fencing, and holding tight, US technology, and by dominating the energy market, which in turn represents the on/off valve to economic growth for US rivals. In this way, Trump can ‘bring the troops home’, and yet America keeps its hegemony [America’s control of the world, global empire]. Military conflict becomes a last resort.”

He bases that crucially upon a landmark 6 November 2017 article by Chris Cook, at Seeking Alpha, which laid out, and to a significant extent documented, a formidable and complex geostrategy driving U.S. President Donald Trump’s foreign policies. Cook headlined there “Energy Dominance And America First”, and noted that,“Towards the tail end of the Clinton administration and the Dot Com boom in 2000,[Trump’s U.S. Treasury Secretary until April 2018] Gary Cohn of Goldman Sachs had dinner with his counterpart at Morgan Stanley, John Shapiro. From this dinner was hatched an audacious plan to take control of the global oil market through a new electronic global market platform.”

This “global market platform,” which had been started months earlier in 2000 by Jeffrey Sprecher, is “ICE,” or InterContinental Exchange, and it uses financial derivatives in order to provide to Wall Street banks control over the future direction of commodites prices (so that the insiders can game the markets), by means of the financial-futures markets, locking in future purchase-and-sale agreements. It also entails Wall Street’s buying enormous commodities-storage warehouses and stashing them with such commodities  — such as, in that case, aluminum), and so it influences also the real estate markets, and doesn’t only manipulate the commodities markets. Those vast storehouses (and the operation of the U.S. Government’s Strategic Petroleum Reserve, to carry out a similar price-manipulation function in the oil business) are crucial in order for the entire scheme to be able to function, because without control over the storehousing of physical commodities, such futures-price manipulations aren’t possible. Consequently, ICE couldn’t get off the ground without major Wall Street partners, which are willing to do that. Cohn and Shapiro (Goldman, and Morgan Stanley) backed Sprecher’s operation; and Wikipedia states that,

“Wall Street bankers, particularly Goldman Sachs and Morgan Stanley, backed him and he launched ICE in 2000 (giving 80 percent control to the two banks who, in turn, spread out the control among Shell, Total, and British Petroleum).”

This is today’s financial world — a world in which billionaires control the future directions of commodities-prices, and thus manipulate markets, and even determine the economic fates of nations. It’s not the myth of capitalism; it is the reality of capitalism. It functions by means of corruption, as it always has, but the corrupt methods constantly evolve.

However, Trump’s geostrategy goes beyond merely this, especially by bringing into the entire operation the world’s wealthiest person, the trillionaire King Saud, who, as the sole owner of the Saudi Government, which in turns owns the world’s largest corporation Aramco, which in turn dominates the oil market and which is also #6 in the natural-gas market (far behind the three giants, which King Saud is trying to destroy — Russia, Iran, and Qatar — so that the Sauds will become able to dominate even there). Trump’s geostrategy ties King Saud even more tightly than before, into America’s aristocracy.

King Saud, as Cook noted, is trying to disinvest in petroleum and reposition increasingly into natural gas, because outside the United States and around the world, people are seriously concerned to minimize global warming so as to postpone global burnout from uncontrollably soaring atmospheric carbon. Petroleum has an even worse carbon footprint than does natural gas; and therefore natural gas is the world’s “transition fuel” to a ‘survivable’ future, while solar and other alternatives take hold (even if too late). Despite all of the carbon-fuels industries’ propaganda, people outside the United States are determined to delay global burnout, and the insiders know this. King Saud knows that his petroleum-laden portfolio will have to diversify fast, because the long-term future for petroleum-prices is decline. And he won’t be able to control prices at all in the natural-gas business unless he’s got America’s aristocracy on his side, in the effort to keep those prices up (at least while the Sauds will be increasing their profits from natural gas). Unlike his dominance over OPEC, Saudi Arabia has no such position to control natural gas-prices. He thus needs Wall Street’s cooperation.

Cook said:“The second objective was a switch from oil to natural gas, and when the U.S. [military] was obliged to leave Saudi Arabia, they [the U.S.] thereupon established their biggest regional base in Qatar, who co-own with Iran the greatest single natural gas reserve on the planet – South Pars.

Energy Dominance

In the four months since President Trump’s announcement, the market strategy developed by Gary Cohn is now being implemented and its elements are emerging into view.

Firstly, there has been a massive inflow of Managed Money into the oil market, particularly the Brent contract, which has seen the Brent oil price increase by 35% since the starting point, which I believe can be dated to the August Brent/BFOE Crude Oil option expiry on June 27th 2017. …

The dominant market narrative is that the backwardation in Brent is evidence of surging global oil demand which has emptied inventories and is leading the price to new sunlit uplands. However, I see the market rather differently.

Firstly, whether the Brent spot month is supported by financial, rather than physical demand, the result will still be a backwardation, and because few oil producers expect a price over $60 to be sustainable they therefore hedge and depress the forward price. In support of this view, I am far from the only market observer who believes that Aramco, and Rosneft would not be selling equity if either Saudi Arabia or Russia believed the oil price trajectory will be positive even in the medium term. …

This still leaves open the $64 billion question of which market participant is motivated and able to support the ICE Brent term structure for years into the future by swapping dollar risk (T-Bills) for long term oil risk (oil reserves leased via prepay purchase/resale contracts).

My conclusion by a process of elimination is that this Big Long can only be Saudi Arabia and regional allies, with Saudi Arabia now under the management of the thrusting young Mohammad bin Salman.”

However, I do not agree with Alastaire Crooke’s “In this way, Trump can ‘bring the troops home’, and yet America keeps its hegemony [America’s control of the world, global empire]. Military conflict becomes a last resort.” I explained at Strategic Culture on March 25th “How the Military Controls America” and noted there that “on 21 May 2017, US President Donald Trump sold to the Saud family, who own Saudi Arabia, an all-time-record $350 billion of US arms-makers’ products.” This means that not only Wall Street — the main institutional agency for America’s aristocracy — and not only American Big Oil likewise, are committed to the royal Saud family, but U.S. corporations such as Lockheed Martin also are. Vast profits are to be made, by insiders, in invasions and occupations, just as in gas and oil, and in brokerage.

Although Trump routinely talks about withdrawing U.S. troops, he does the exact opposite. And even if this trend reverses and America’s troop-numbers head down, while the U.S. economy becomes increasingly dependent upon Big Oil and Big Minerals and Big Money and Big Military, America’s military budget is, under Trump, the only portion of the entire U.S. federal Government that’s increasing; so, “Military conflict becomes a last resort” does not seem likely, in such a context. Rather, the reverse would seem to be the far likelier case.

War against King Saud’s chosen enemies (Iran, Qatar, Syria) and possibly even against the U.S. aristocracy’s chosen enemy, Russia (and against Russia’s allies: China, Iran, and Syria) — seems more likely, not less likely, with Trump’s geostrategy.

In fact, on 29 June 2017, when President Trump first announced his “Unleashing American Energy Event,” the President spoke his usual platitudes about the supposed necessity to increase coal-production, and what he said was telecast and publicized; but his U.S. Energy Secretary, the barely literate former Governor of Texas, Rick Perry, also delivered a speech, which was never telecast nor published, except that a few days later, on July 3rd, an excerpt from it was somehow published on the website of Liquified Natural Gas Global, and it was this:“I want to address what Mr. Cohn was talking about from a standpoint of how important American energy is as an option, not as the only option, but as an option to our allies and to count[r]ies around the world. 

At the G7 it was really kind of interesting.  The first thing they beat on the table talking about the Paris accord, you can’t get out of it, and I was kind of like OK. Then we would go into our bilats and they’d go, how about some of that LNG you’ve got? How do we buy your LNG, how do we buy your coal?  And it was really interesting, it was a political issue for them. This whole Paris thing is a public relation[s], political issue for them. We made the right decision, the President made the right decision on this. I think it was one of the most powerful messages that early on in this administration that was sent. 

We are in a position to be able to clearly create a hell of a lot more friends by being able to deliver to them energy and not being held hostage by some countries, Russia in particular. Whether it is Poland, Ukraine, the entirety of the EU. Totally get it, if we can lay in American LNG, if we can be able to have an alternative to Russian anthracite coal that they control in the Ukraine. That singularly will have more to do with keeping our allies free and building their confidence in us than practically anything else that I have seen out there. It is a positive message around the world right now.”

If that was more the reality of Trump’s “Unleashing American Energy” policy than just the pro-global-burnout cheerleading of Trump’s mere words, then it seems to be — in the policy’s actual intent and implementation — more like “send more troops in” than “bring the troops home,” to and from anywhere. It is more like energy policy in support of the military policy, than military policy in support of the energy policy.

This sounds even better for the stockholders of Lockheed Martin and other weapons-firms than for the stockholders of ExxonMobil and other extractive firms. On 6 March 2018, Xinhua News Agency reported that, “U.S. President Donald Trump’s chief economic adviser Gary Cohn has summoned executives from U.S. companies that depend on aluminum and steel to meet with Trump this Thursday, in a bid to persuade the president to drop his tariff plan, media reported Tuesday.” After all: Goldman has warehouses full of aluminum, and has the futures-contracts which already commit the Wall Street firm to particular manipulations in the aluminum (and other) markets. Controlling the Government so that it does only what you want it to do, and only when you want the Government to do it, is difficult. In any aristocracy, some members need to make compromises with other members, no matter how united they all are against the publics’ interests. This is the way it’s done — by compromises with each other.

first published at strategic-culture.org

Investigative historian Eric Zuesse is the author, most recently, of They’re Not Even Close: The Democratic vs. Republican Economic Records, 1910-2010

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Is the Washington-initiated Climate Summit a Biden Politrick?

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Earlier on, climate skeptics had wondered if President Biden’s January 27 Executive Order on “climate crisis” was “climate politrick?” Now, scholars in China have likened the US climate envoy’s hurried China visit last week to “a weasel calling on a friendly New Year visit to a chicken” – or a visit with evil intentions. Some overenthusiastic critics of the US in Beijing are even warning President Xi to not login for the online Earth Summit in Washington this week.

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People in China believe a snake and a wolf must never be rescued. The belief comes from a popular idiom: the Zhongshan wolf or “The Wise Old Man and the Wolf.” In a few words, the essence of the popular Chinese adage is well-captured in the following sentence: a popular fairy tale about the ingratitude of a creature after being saved. Last year, the idiom entered China’s foreign policy discourse as several IR commentators employed it to describe “ingratitude” of the Trump-led America towards the Peoples’ Republic. Following the ascent of President Biden in the White House, the Chinese commentariat quickly course-corrected itself, i.e. neither Trump nor Biden, it is the US bipartisan anti-China consensus which is the real “wicked wolf.”

Just like the curt and bland statement issued by China’s foreign ministry acknowledging China will host the US climate envoy Kerry for three days in Shanghai, 14-17 April, China released on last Sunday the text of the joint China-US statement following Kerry’s departure on Saturday. The statement said: “The United States and China are committed to cooperating with each other and also with other foreign governments to tackle the climate crisis which must be addressed with seriousness and urgency it demands.” Interestingly, or rather conspicuously, the statement neither indicated nor was followed by another press release regarding whether China will be represented at the upcoming crucial 40-nation Earth Summit being hosted by President Biden.

While it is true a few Chinese scholars and think tanks have welcomed the worlds’ two largest carbon emitting nations to come forward to cooperate with each other upholding the spirit of the Paris climate agreement. What is perhaps unprecedented and more significant is the warning to President Xi by a section of China’s leftist intelligentsia to beware of Biden’s “climate politrick.”

Talking of those who welcomed Xi-Biden climate cooperation initiative – the first sign of bilateral cooperation since the Trump interregnum, Zhang Jianyu, chief representative and vice president of the non-profit Environmental Defense Fund’s China Program, reacted positively and said: “The fact that the joint statement has been signed, means that both Beijing and Washington believe in climate change. We are hoping both China and the US take bold actions.” Li Shuo, senior climate adviser for the environmental group Greenpeace, said China could soon respond to a new U.S. pledge with one of its own, building on the “momentum” of the Shanghai talks.“The statement in my view is as positive as the politics would allow: It sends a very unequivocal message that on this particular issue (China and the United States) will cooperate. Before the meetings in Shanghai this was not a message that we could assume,” Li added. 

In contrast, an article in Utopia, one of the influential “anti-US” platforms for ideological debate in China, cautioned China’s top leadership while questioning Biden’s credentials to host the Earth Summit. The pro-Mao, leftist online intellectual discourse forum advocates Maoist and communist ideology. In a signed article on the forum’s website last Saturday – the day John Kerry concluded his 3-day stay in Shanghai and left for Seoul, a commentator using strong words not only “condemned” Joe Biden for his “arrogant” and “hypocritical” foreign policy thinking, but also urged the Chinese leadership to thwart Washington’s attempt to regain the US leadership by holding the Earth Summit beginning Thursday. The article was entitled: “China must resist and fight back hypocrite Biden.”   

In fact, as early as in November last year, within days of the presidential voting, a section of scholars in China were writing “the election of Biden may or may not turn out to be a turning point for easing Sino-US frictions…with Biden in power, the nature of Sino-US relations will not see a fundamental change, but the mode of confrontation will be relatively soft and the direction of negotiations will be more predictable.” However, with each passing day since taking office, President Biden’s China policy has consistently been predictable in only one direction – in enduring the Trump legacy. The most recent manifestation of which was on display at the testy diplomatic summit last month in Anchorage where senior officials from the two countries “traded sharply critical assessment” of each others’ policies.

Another Chinese commentary has highlighted six ideological “attacks” the US has carried out against China in the international arena under Trump and Biden administrations respectively. First is the classic example of the US-Japan nexus in politicizing and turning on its head the Chinese opposition to Japan’s decision to release radioactive contaminated water from Fukushima into the sea; second is the Western governments and media carrying out slanderous campaign of China’s “economic colonialism” in Africa; third, as soon as China succeeded in containing fight against COVID-19 last year in May and started offering humanitarian assistance abroad, the US-led started defaming and discrediting China by launching “mask diplomacy” campaign against Beijing; fourth, just like vicious propaganda maligning China’s economic assistance to Africa and China’s humanitarian aid by free supply of PPE and masks, the US launched “vaccine diplomacy” campaign to vilify China; the fifth is attacking China using the virus trajectory and accusing China of developing COVID-19 virus and exporting it from chemical laboratory in Wuhan; the sixth and the latest anti-China “false” propaganda is the “genocide” in Xijiang. Unlike the genuine human rights violation by Japan to release the contaminated water into the sea, the false propaganda against China is aimed at creating anti-China world public opinion, creating social unrest and turbulence in China and ultimately achieving their goal of destroying China, the article stated.   

Finally, it is not incorrect to view President Xi’s highly charged remarks made at two most recent international events respectively in the context of strongly-worded articles published in Utopia and other left-leaning online websites in the past few days. Two days prior to the arrival of Kerry in China, President Xi, according to the Xinhua news agency, warned the US in his speech at the China-Germany-France trilateral video conference on climate change: “Climate change could be used as a tool to disparage some countries for not doing enough.” Then two days prior to the Earth Summit, Xi apparently reiterated his stern warning to President Biden: “We must not let the rules set by one or a few countries be imposed on others, or allow unilateralism pursued by certain countries to set the pace for the whole world.” The remarks by Xi were made at China’s annual Boao Asia Forum on Tuesday.    

China’s semi-official “independent” English language CX Daily interpreted Xi’s above remarks as “veiled swipe at the new US administration under Biden” who has been busy forming alliances challenging China over issues such as Taiwan, Hong Kong and Xinjiang. Of late, mainstream media in China has been accusing Biden of not only carrying on and enduring the Trump legacy in relentlessly “attacking” China, but also that Biden has gone far beyond Trump in insulting and condescending Beijing. In fact, the Utopia commentary uses another Chinese idiom “externally strong, empty inside” to caricature Biden’s personality. It cites two recent incidents to establish how weak and hollow is President Biden, i.e. the US-China talks in Alaska and Putin’s resolve to dare the US in the Black Sea – in both instances, Biden simply caved in after he was challenged, the commentary observed. “On Iran nuclear deal issue too we saw Biden acting in the same surreptitious and crude manner. He [Biden] is typical treacherous man,” the Utopia commentary continued its verbiage.

Some Chinese scholars, therefore, have welcomed Xi’s remarks as clear rebuff to what the mainstream Western media, in particular the Wall Street Journal has been spreading, i.e. “Xi would participate in the US-initiated climate summit later this week.” These scholars are invoking yet another ancient Chinese proverb “Mouth honey belly sword” or Koumifujian in Chinese. The idiom is used as a metaphor for describing someone extremely sweet on the outside but actually shrewd, cunning and sinister. Most Chinese IR commentators are telling us, the idiom is a perfect description of Biden. 

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Russia Or China: Is Biden Right To Target Russia?

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No one can disagree with President Joe Biden when he wants to overhaul infrastructure — although a single-minded concentration on one aspect is likely to be longer lasting and a legacy.  Consider, for example, a high-speed rail link between New York and Los Angeles,  True high-speed, that is, and truly modern like the new lines in China with a design speed up to 350 km/h (220 mph), or preferably higher by the time the rails are constructed in the US.  It would make overnight coast to coast (3,000 miles) railroad trips a reality.  

What is more difficult to fathom is Biden’s foreign policy.  He appears to have identified Russia as an adversary or worse, starting with calling Vladimir Putin a killer and exposing several Russian companies that possibly support its intelligence services.  Do American companies ever provide cover for the CIA?  That is the obvious question coming to mind with an obvious answer.  Have western intelligence services including the CIA ever carried out assassinations?  If so, would the US president be called a killer?

At the same time, Russia is not the country with a stated goal of becoming the world’s leader in its economy, technology and military.  No, that’s China.  Russia only wants closer ties with the west but is being driven into the arms of China.

Given China’s stated goals and its progress towards them, it is transparent that its aims require the displacement of the US from its leadership position.  Any prospect of thwarting China’s ambitions would impel the US to cordon the  country to some extent or at the very least attempt to challenge its influence.  Instead, China is signing treaties with neighbors.  It is in Iran and it announced that it might send its own troops to Afghanistan to maintain its “peace” after the US departs.  Afghanistan, by the way, is rich in minerals and rare earth elements.  

So far Mr. Biden’s foreign policy initiatives appear tactical with a kind of tit-for-tat approach that is absent a coordinated (with allies) strategic plan to prepare the US for a confrontation politically and economically — not militarily, although as the US ramps up pressure, a skirmish here and there on the high seas could be a possibility.

A string of Chinese bases now ring the Persian Gulf extending west to East Africa and east along the Iran and Pakistan coast to Sri Lanka, across to Burma and then south to the western end of Indonesia.  The recent treaty with Russia allows convenient Eurasian access while the new closeness with Iran permits an overland route to its oil riches.  East of Iran is Pakistan which is a Chinese client state of long standing and where it has built the Gwadar port.

Given the circumstances, the US is obliged to reassess Iran from a geostrategic perspective but also Pakistan, a country that has been on the frontlines of the Afghan war since the beginning.  Pakistan is also a key to long term peace in Afghanistan as its own Pashtun population is connected to Pashtuns there through family ties and a traditionally porous border.  They also command a plurality as the largest ethnic group in Afghanistan. 

Further east China is increasing its influence in Sri Lanka, and is by far Burma’s largest trading partner.  The recent coup in Burma is its own story and an oft-reported tale in that country without noting China’s silence.  

Despite the local politics, the US can ill afford to surrender such a vast region to China without counter moves to ensure some freedom of movement within China’s tight embrace.

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Playing Politics in Times of Covid: AMLO’s Whimsical Inoculation Programme

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Image source: as-coa.org

Andrés Manuel López Obrador (AMLO) has capriciously modified Mexico’s inoculation programme as he sees fit. He has followed an improvised strategy along the way that follow no logical approach.

The initial vaccination schedule was set up in 5 stages that placed frontline and essential workers as priority sectors; the rest of the population would be divided up by age ranges and inoculated accordingly. However, last January, AMLO announced the creation of 10,000 brigades who would oversee the vaccination programme. Each brigade is made up 12 people majority of whose are active members of the president’s political party MORENA. They also were prioritised for vaccination, even ahead, some key workers. This process alone took up 120,000 vaccines that otherwise would have gone directly to frontline workers or the elderly.

As of mid April, Mexico, with a population of 117 million people, has only vaccinated over 10 million people, roughly 8.5% of the population. Only 2.6 million have received the second shot, only 2.2%. The government also announced that it was prioritising the poorest citizens and indigenous communities. In a more recent announcement, he declared teachers would be also bumped up for priority vaccination ahead of the elderly. This again demonstrates the arbitrary standards of his vaccination schedule.

The government’s decision to inoculate teachers ahead of even health workers does not come as a surprise: they’re a key voting bloc. Mexico is holding mid-term elections this coming July, and vaccinating teachers so close to voting time is the latest evidence that the president is playing politics with the vaccinations. Just like in old times under the hegemonic party, unionised teachers are crucial for AMLO’s political party to win the most votes in the next elections.

Using certain sectors of the population to mobilise voters in favour of political party is not something new in Mexican politics. In Mexico, just like in many other unconsolidated democracies, political parties and candidates themselves can turn to political agents to ensure victory in elections through the use of patronage systems or vote-buying strategies.

To fully understand the role of the Teachers’ Union (SNTE and CNTE) as a political machine, it is essential to understand its history and role in elections over the last decades. The SNTE has more than 1.6 million members nationally, while the CNTE has over 100,000 members, it was founded in 1980 and has considerably less influence than the SNTE.

The SNTE was founded in 1949, and since then they served as a satellite organisation of the hegemonic party, PRI. Up until 1992, it was mandatory for all Union members to register as active party members. Therefore, throughout these years, the PRI, regularly received electoral support from the Union. The alliance between the hegemonic party and the SNTE strengthened in 1989 when Elba Esther Gordillo was appointed as the new leader of the Union.

What was behind the motivation of the SNTE in becoming an electoral agent? For many years, the Union received monetary incentives and access to political posts. Under this arrangement, political parties and even candidates may monitor the performance of such agents to make sure they are still aligned to those of the government, political party or candidate. As long as the interests of both sides are aligned, the electoral agent is expected to work efficiently to deliver the expected results either on election day or throughout the length of the administration.

In 2005, Elba Esther Gordillo was expelled from the PRI, ending the alliance between the SNTE and the hegemonic party. The leader of the Union founded her own political party, PANAL, and participated in the 2016 federal elections. However, due to the number of voters the newly created party attracted, it was only limited to proportional representation positions. Although PANAL, presented its own candidate for the presidency, Elba Esther offered the votes of the Union in the presidential elections to other political parties with greater possibilities of winning.

The SNTE supported Felipe Calderón, the PAN candidate in 2006 and in 2012 they backed the PRI candidate, Enrique Peña Nieto. The SNTE’s geographical outreach and the role of teachers as community and educational leaders facilitate their role as electoral agents. They’re able to influence informally the vote of others as well as the opinions and voting decisions of students and their parents.

In many democracies, it is not unusual for teachers to have strong ties to political parties and their candidates, and this is critical when it comes to explaining their effectiveness as electoral agents. It is not uncommon also for teachers to be appointed as voting stations representatives. The combination of these institutional characteristics opens the door for teachers to continue to influence voters through either legal or illegal.

AMLO’s courting of the Teachers’ Union dates to his electoral campaign in 2018. José Alfredo González, son in law of Elba Esther Gordillo, was seen in a presidential campaign event to support AMLO’s candidacy. He is also an active member of Redes Sociales Progresistas, a newly created party with links to Elba Esther Gordillo. Soon after AMLO’s inauguration in 2018, AMLO set to dismantle the education reform that has been approved by Enrique Peña Nieto in 2012. This was well received by the 2 Teachers’ Trade Unions. In 2020, the SNTE expressed its support for the president, and they also ratified its adherence to the political programme of the president. AMLO also publicly asked Elba Esther Gordillo to talk openly about the (alleged) fraud of 2006. AMLO’s intentions in doing this are very clear: He wants the former leader of the Union to enter the political game by talking about the issue and taking a stance that would not be antagonistic towards the incumbent party.

There is no doubt that the president has an underlying agenda in prioritising the vaccination of teachers when mid-term elections will be held in less than 2 months in Mexico. The president has chosen CanSino as the vaccination to be used to inoculate teachers across Mexico to allow schools to reopen by the end of May in some states. Now, with only less proven vaccine options, CanSino has an efficacy rate of less than 65%, questions undoubtedly arise as to how effective the inoculation of Mexicans will be with the use of these vaccines over the already proven ones.

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