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Possible Directions for U.S. Policies in the Biden Era

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Joe Biden
Official White House Photo by Adam Schultz

Authors: Chan Kung and He Jun

On January 20, 2021, a new page will be turned in the history of the United States when Joe Biden becomes the 46thPresident. What will happen to U.S. domestic and foreign policy as a result of the transition from the “Trump Era” to the “Biden Era”? What will be the impact of this on the U.S., the world, and China? After the tumultuous Trump Era, we believe that this is an issue of great concern to international governments and markets.

The “ANBOUND 100+” high-end discussion platform and the macro team have been continuously tracking the news of the imminent Biden Era and possible policy changes. To this, we have made a number of key predictions. In the historic moment when Joe Biden is about to take office, it is important to review and summarize the relevant research to understand the changes that the new U.S. President will bring.

First, we shall look at the American political landscape in the Biden Era.

An overall judgment is that Democrats are taking control, but “Trumpism” is still unlikely to disappear from U.S. politics any time soon. The ANBOUND team had judged on November 11, 2020, that Donald Trump’s various policies had in fact left Biden with a number of political and diplomatic “legacies”, and that Biden actually had considerable autonomy over whether to “inherit” these “legacies”. Objectively, whether inherited or not, these “legacies” can be used as a bargaining chip for the Biden administration. On the issue of Trump himself, ANBOUND once said on December 20 that Trump will be in trouble because he had “gone too far” and that the future Biden team might carry out a complete reckoning with Trump and his team. Judging by the fact that Trump is facing a second impeachment and the investigation into the storming of the Capitol, such a reckoning is happening. In this regard, ANBOUND has summed up Trump’s influence remains and its trajectory to be: Trump -> Trumpism -> Trumpism without Trump.

In the Biden Era, the two-party political landscape in the U.S. will be unbalanced, with the Democrats dominating U.S. politics and rapidly gaining the upper hand, and the Republicans facing an internal split, as ANBOUND judged on January 10, 2021. On this basis, we believe that there is a clear trend towards “bipartisanship”, with the Democrats becoming the dominant party in this cooperation. In this context, the Biden administration is likely to complete domestic integration faster and turn its focus to foreign policy sooner. It is also possible that with less resistance at home, the Democrats will give more focusat home, and the U.S. society will become more integrated than in the past, with some of the major domestic issues, such as welfare and environmental protection, to likely make significant progress over the next four years.

Then, there are the U.S. economic issues and economic policies in the Biden Era.

The United States faces many problems in the economy, but the core problem lies in the distribution of wealth, which is the cause of many social problems. The research team of ANBOUND pointed out in November 2019 that the wealth of the United States is still in the process of being accumulated in large quantities, and the real problem of American society lies in the distribution of wealth. Part of the backlash against globalization in the U.S. is also related to the distribution of wealth in American society. On this basis, we believe that welfare will be an important aspect of U.S. economic policy that needs to be addressed in the future. On November 22, 2020, we further pointed out that the transition to a welfare state could usher in a new super-boom for the United States. Contrary to the view of many that welfare is a “simple spending” policy, we believe that welfare, if properly used, will create new consumption space. In terms of health insurance, education, and consumption in the United States, we expect that a full-scale welfare transition in the U.S. would create a USD 10 trillion mega-consumer market that would potentially bring the U.S. into a new phase of rapid development while resolving social tensions.

Based on the above analysis, we believe that the core of the so-called “Bidenomics” is about the distribution of wealth and the “welfarization”. From what has been observed so far, the basic logic of “Bidenomics” is to solve the public health crisis, save jobs, reconfigure the industrial chain, overhaul infrastructure, promote an environmental agenda, build a better social security system, and promote social equality. This logic is likely to be the “core” of economic policies in the Biden Era. There were similar signals that emerge before Biden officially took over the presidency. Biden has proposed USD 1.9 trillion stimulus package to deal with the impact of the pandemic on the U.S. economy and society. Biden’s Treasury Secretary nominee Janet Yellen also called on the U.S. Congress to act more aggressively to deliver economic aid without worrying too much about the debt. “Neither the president-elect, nor I, propose this relief package without an appreciation for the country’s debt burden. But right now, with interest rates at historic lows, the smartest thing we can do is act big,” Yellen said. “I believe the benefits will far outweigh the costs, especially if we care about helping people who have been struggling for a very long time,” Yellen added. Yellen also stressed the need to rebuild the U.S. economy “so that it creates more prosperity for more people and ensures that American workers can compete in an increasingly competitive global economy.”

Concerning the foreign policy issues in the Biden Era, as mentioned above, Biden will not completely abandon Trump’s diplomatic “legacies”, rather he would build on it with some kind of “pullback”. In this process, institutionalization and systematization will be the most prominent characteristics of American diplomacy in the future. A top foreign policy priority for the Biden administration will be to rebuild relations with its allies, particularly Europe, restoring stability to the transatlantic alliance and healing the rifts that have emerged over the past few years. We believe that such rapprochement will certainly play a role and the U.S.-EU strategic alliance will not change, but it will be difficult to fully restore to the levels of the past. On many issues, such as economy and trade, market space, security, and digital sovereignty, the EU will have a stronger “sense of autonomy”. As for U.S.-China relations in the Biden era, we have argued that we should not expect the U.S. government to adjust its hardline position on China, but that the Biden administration would be more predictable in its approach to policy games, returning to the character of “the establishment”. In fact, as early as October last year, the ANBOUND’s research team pointed out in its outlook on U.S.-China relations in the Biden era that the Biden administration’s approach to several aspects of domestic and foreign affairs would generally differ from that of the Trump administration, and that while its strategic positioning of China and the policy of inhibiting the rise of China in the long term would remain unchanged, in terms of specific approaches, the Biden administration would seek a certain degree of order and geopolitical discipline to implement and enforce its policies.

In regard to the Korean Peninsula issue, we believe that in the Biden Era, it is possible for the United States and North Korea to reach a phased nuclear abandonment agreement. On Iran, the main concern is still the Iranian nuclear issue. We believe that the United States will amend Trump’s extreme policies on the issue of the Joint Comprehensive Plan of Action (JCPOA), or the Iran nuclear agreement, and some adjustment will take place. However, even if the United States can return to the Iran nuclear agreement, Iran may have to make certain concessions on the 2015 version. One of the key points may be that Iran needs to further restrict its support to the militia in the Middle East on the basis of the original version. This means that Iran’s influence in the Middle East will be significantly reduced. Regarding the issue of returning to Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), we believe that returning to CPTPP is quite attractive to the Biden administration, but it is also quite difficult. Fluctuations in U.S.-China relations will affect the process of the United States returning to CPTPP; the worse the U.S.-China geopolitical relationship gets, the less resistance the United States will have to return to CPTPP.

In addition, ANBOUND’s researchers also believe that looking from the standpoint of historical development, the Biden administration may be a transitional period for the United States to return to “normal” from the Trump Era. From Biden’s personality, age, situation and environment, we tend to think that the Biden administration is likely to be a “presidential accountability system under the leadership of Secretaries”. In such a government, it is the Secretaries of various departments, the Department of State, and the new cooperation pattern of the two parties in Congress that play a key role, rather than relying mainly on the President. In particular, Janet Yellen, the new Treasury Secretary who had served as the Chairperson of the Federal Reserve, could very well have crucial impact on the U.S. economic policy in the Biden Era.

Final analysis conclusion:

With the transfer of executive power, the United States will bid farewell to the “Trump Era” and usher in the “Biden Era”. The United States under Joe Biden will undergo considerable adjustments and changes, which are reflected in many aspects of the United States’ domestic politics, international geopolitics, economy, and foreign policy. The world will watch the new changes in the United States, and China will see a new pattern of U.S.-China relations. Changes in the United States will not only affect the world but also China’s development strategy.

Founder of Anbound Think Tank in 1993, Chan Kung is now ANBOUND Chief Researcher. Chan Kung is one of China’s renowned experts in information analysis. Most of Chan Kung‘s outstanding academic research activities are in economic information analysis, particularly in the area of public policy.

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America’s Two-Tiered Justice System

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The Constitution states only one command twice. The Fifth Amendment says to the federal government that no one shall be “deprived of life, liberty or property without due process of law.” The Fourteenth Amendment in 1868, uses the same eleven words, called the Due Process Clause, to describe a legal obligation of all states. These words have as their central promise an assurance that all levels of government must operate within the law and provide fair procedures to all its citizens.

In this politically divisive climate, the central promise has been broken with little to no assurance that one can trust the American democratic system where some courts have disavowed their responsibility to uphold the Constitution’s meaning of the laws passed by Congress. For instance, the Bill of Rights was passed because of concepts such as freedom of religion, speech, equal treatment, and due process of law were all deemed so fundamental to protect every legal resident in the nation; yet we are now witnessing politically charged judicial appointments eradicating these principles under which all persons and entities are accountable to equally enforce and independently adjudicate, as well as being consistent with international human rights.

On the heels of the Chinese coronavirus, there is an escalating epidemic of unequal justice and character assault where much of the news media is politically aligned with the rulers in turning a blind eye or complicit in the coverup; and in some cases, ravenously endorses the demise of what has essentially now become political dissidents falsely accused, intimidated, and jailed. While many Americans are attempting to scrape by in difficult times, they remain astute to the moral failure of the elites in power as well as the tacit elected opposition’s assiduous silence in whitewashing the legal duplicity. Historical trends over centuries of betraying the peasants eventually succumbs to a reckoning where the privileged corrupt politician and their corporate fascists will be exposed and held accountable in some fashion.  

Americans are confounded by the coronavirus decrees requiring masks to be worn for thee and not for me double standards. The politicians hammer away at enforcing mask mandates on the common folk, yet they do not adhere to their own edicts while attending fine dining with their elite backers. Speaker of the House Nancy Pelosi, Californian Governor Gavin Newsome, and Chicago Mayor Lori Lightfoot all violated their own mask mandates in public venues while the masked servants waited on them.

President Biden was caught on video walking maskless through a swanky Washington restaurant in violation of the District’s laws on facial coverings, yet regular citizens are subject to civil penalties which result in fines of $1000.00 or revocation of licenses during the COVID-19 emergency. In defending the emperor, White House press secretary Jen Psaki said we should ‘not overly focus on moments in time that don’t reflect overarching policy.’ These double standard by the progressives are a far cry from Americans being punished and ostracized all over the country for not wearing a mask.

Identity politics has resulted in two systems of justice – one where BLM rioting and looting is described by the media as peaceful demonstrations and where assaulting police has no criminal consequences; yet the January 6th actions at the Capital has resulted in the largest round up of protesters ever seen in America. It is estimated that the Federal Government has upwards to 70 rioters/trespassers in solitary confinement and they are only let out in a larger area for one hour at 2 am due to COVID. Some of those being held in detention have been charged with trespassing on restricted grounds, others with assault and obstruction, and some haven’t been charged with anything. There are no bail hearings for these political activists yet BLM and Antifa rioters typically spend one night in the brig and let out the next day to rejoin the frontlines of carnage.  

Senate Majority Leader Chuck Schumer has vocally pushed for the January 6th ‘insurrectionists’ to be added to the TSA no-fly list. Civil liberties are being trampled by exploiting insurrection fears with people in attendance no longer permitted to take a flight in their own country and they have not been convicted of a crime. This action by the government had previously only happened to suspect foreign terrorists, and now it is happening to Americans under suspicion. We see no similar actions taken against the militant Antifa anarchists who attacked and torched federal buildings in Portland.

Washington DC has essentially been abusing these inmates in captivity. There have been complaints on the nourishment of their fellow Americans where they are served white bread and a packet of tartar sauce. This is ultimately a violation of the 8th Amendment that prohibits the federal government from imposing excessive bail, nor cruel and unusual punishments, and from inflicting unduly harsh penalties. Some judges are expressing concern at the length of these pretrial incarcerations, however they’ve largely deferred to the Justice Department. Meanwhile anarchists who burn down buildings and shoot projectiles at police officers and federal buildings have charges dismissed. Justice is not equal.   

One female trespasser was shot dead by police during the Capital unrest and there was no outcry or charges against the officer. She was white and a Trump supporter. Federal prosecutors are not seeking criminal charges against the police lieutenant whose single shot killed Ashli Babbit, the 14-year veteran who served four tours with the US Airforce. If the unarmed Babbit committed any crime, it would have been for trespassing, a misdemeanor that should have seen her arrested and not slain. The lieutenant’s life was not at risk nor was he saving the lives of others as he stood with numerous police officers in riot gear and strapped with submachine guns. If a member of BLM was shot dead by police during an unlawful riot, there would have been an immediate racial outcry from political elites and from across the news media for justice followed by looting local retailers and ransacking a police precinct. The action by BLM is considered righteous violence whereas the slain Babbit had it coming to her.  

On a very disturbing and new level of injustice is the threatening actions being taken against parents of schoolchildren by the Department of Justice. Most Americans are familiar with the Patriot Act following 9-11 where the National Security Division conducts counterterrorism operations against foreign adversaries planning suicide bombings and stealing nuclear secrets. Now the Biden Administration, under Attorney General Merrick Garland, has turned the NSD’s crosshairs against everyday Americans conducting their civil duties and free speech as school board meetings.

Garland’s actions followed the National School Boards Association’s (NSBA) claim that American public schools and its education leaders are under immediate threats and intimidation as parents grow frustrated over the divisive neo-Marxist Critical Race Theory being injected into their children’s curricula. This is clearly an injustice to weaponize the DOJ and FBI investigators to intimidate and arrest parents under the same counterespionage to that of Al Qaeda and ISIS. Parents may be angry, but they are certainly not domestic terrorists in taking on the powerfully partisan school unions who somehow believe they are justified to influence civilization by indoctrinating their children.        

Garland’s poster boy for his hideous partisan support of the NSBA is a Virginia father who was arrested at a school board meeting when he attempted to raise the alarm over his young daughter being raped in the school washroom. The father became the symbol of angry parents confronting school officials when he was taken down by several police officers and apprehended for disorderly conduct and resisting arrest. He became vocally upset when school officials denied the attack on his daughter, but he was not physically confrontational.

The father said it is scary that our government will weaponize themselves against parents and they’re using my video across the nation to spread fear; while the school officials did not seem to want to listen to him regarding his daughter being assaulted by a boy wearing a skirt who took advantage of transgender rules to access the girl’s washroom. The boy has now been charged with two counts of forcible sodomy, one count of anal sodomy, and one count of forcible fellatio related to the incident at that school. At a later date, the same boy was charged for a similar attack at neighboring school where he allegedly forced a victim into an empty classroom where he held her against her will and inappropriately touched her.  Regardless of the raped daughter, Garland and the NSBA still have their video of the father being wrestled down to support the use of the FBI against parents and send a chilling effect on harmless dissent.  

The Russian collusion narrative against then President Donald Trump may seem dated, however it can never be swept aside or forgotten in what may well have been the biggest political scandal and injustice to a man in American history. The country endured four years investigating Russian collusion into the legitimacy of Trump’s 2016 presidential win with senate and congressional impeachment hearings over a Clinton-paid-for fake dossier, the biased Obama hatchet men overseeing the FBI and CIA shirking the law, a frenzied media that never let up on Trump’s guilt, and a special counsel comprised of Clinton partisans that turned over every leaf that eventually found the nearly crucified Trump to be innocent of the false charges. The former president had to withstand an incessant blitzkrieg of injustice through his entire presidency while leading the most powerful country in the world.   

On the hand, there is compelling evidence that President Joe Biden spent years while in government enriching himself through family ties, specifically his son Hunter, to the tune of millions of dollars in foreign money from China, Russia, and Ukraine. The foreign players simply used the unqualified son to leverage access to Biden while satisfying Hunter’s greed and questionable lifestyle. Biden has little to no ability to stand up to China or Russia knowing they are holding damaging transactions over his head. There have been no investigations into Biden’s quid-pro-quo against Ukraine or the transfer of tens of millions of dollars to Biden family members, no impeachments, and the news media buried these stories; including damaging information found on Hunter’s laptop during the 2020 presidential election. Had Trump and his sons engaged in these activities, there would have been a very different level of justice.   

What of this injustice that is making its mark on history? If we take a moment to think through the confusion of the moment and see the morale issue involved, then one may refuse to have this sense of justice distorted to grip power rather than for the good of the country. Those who have sown this unjust wind may eventually reap a whirlwind that provokes reform by convulsion of the people instead of a natural order of business. We must all remember that democracy lies with the people of this land and whether the nation will be stirred to stand for justice and freedom in this hour of distress and go on to finish in a way worthy of its beginning.  

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Biden’s Department of Justice: parents as domestic terrorists

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In recent developments in the United States, US Attorney General, Merrick Garland, and the FBI have put under the FBI radar parents as potential domestic terrorists. You heard it right. This is now a new formal legal policy contained in memos of the Department of Justice trying to reign in parents discussions on Biden’s new school curricula. They are not going after potential outbursts but outright terrorism. 

This is an attack on freedom of speech in the sense that parents have the right to discuss and disagree with the new Biden school curricula. This is where the issue originated: parts of Biden’s new school curricula are not accepted by many parents and if they disagree, the FBI treats them now as potential domestic terrorists as a matter of policy. Apart from a First Amendment case, this is also a case for international human rights law and I reported the development to the UN Special Rapporteur on freedom of speech this week hoping to get a statement.

The Department of Justice is referring to some constitutional provision on “intimidation of views” to override and take down one of the most firmly established rights, the right to freedom of speech, in quite frankly a ridiculous interpretation. Those parents that dare to speak up against controversial parts in the new text books could be investigated for domestic terrorism. This is the most incompetent interpretation on limitations of freedom of speech I have seen in awhile. 

Garland and the FBI have totally lost their marbles. The woke discussion is not funny to me anymore. It increasingly looks like a woke tyranny that has nothing to do with rights and equality anymore but simply serves as a vehicle to empower the FBI to run wild against regular people. This lunacy needs to be stopped.

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Iran poll contains different messages for Biden and Raisi

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“It’s the economy, stupid.” That is the message of a just-published survey of Iranian public opinion.

However, the substance of the message differs for newly elected hardline Iranian President Ebrahim Raisi and the Biden administration as Mr. Raisi toughens his negotiating position and the United States grapples with alternative ways of curbing the Islamic republic’s nuclear programme should the parties fail to agree on terms for the revival of the 2015 international agreement.

Iranians surveyed last month by Iran Poll and the University of Maryland’s Center for International and Security Studies were telling Mr. Raisi that they are looking to him to alleviate Iran’s economic and other problems and have little hope that a revived nuclear agreement will make the difference, given lack of trust in US and European compliance with any agreement reached.

The Iranians polled seemed in majority to endorse some form of Supreme Leader Ayatollah Ali Khamenei’s notion of a “resistance economy” as a way of blunting the impact of the US sanctions imposed by former President Donald J. Trump after he walked away from the nuclear agreement in 2018. Some 65 per cent of the responders said they favoured a self-sufficient economy; 54.2 per cent expected the economy to at least improve somewhat in the next three years.

A large number expressed confidence that Mr. Raisi would significantly lower inflation and unemployment, increase Iran’s trade with other countries, control the pandemic and root out corruption.

Meanwhile, 63 per cent suggested that Iran’s economic situation would be the same, if not better, if there were no return to the agreement and the government continued to pursue a civil nuclear programme. The figure seemed at odds with the 80 per cent who said Iran’s economic situation would improve if Iran and the United States returned to the agreement and both fulfilled their obligations under the deal.

The divergence may be a function of the fact that the poll, unsurprisingly, indicated that Iranians (64.7 per cent) had little trust in the United States living up to its commitments even though they expected the Biden administration to return to the deal (57.9 per cent). As a result, 73.1 per cent of those surveyed said Iran should not make concessions given that world powers would not live up to commitments they make in return.

At the same time, 63 per cent blamed the troubled state of the economy on domestic mismanagement rather than US sanctions. Only 34.4 per cent believed that the sanctions were the main cause of their economic difficulty. Iranians pointing the finger at the government rather than external forces was also reflected in the 60.5 per cent of those polled blaming Iran’s water shortages on mismanagement and bad policies.

The poll suggested that by emphasising domestic mismanagement, Iranians were going to judge Mr. Raisi on his success or failure in countering the debilitating effect of the sanctions even though 77.5 per cent of those surveyed said that the sanctions had a negative or somewhat negative impact on the economy.

Implicitly, Iranians were holding former Iranian President Hassan Rouhani responsible for the mismanagement given that Mr. Raisi only took office in August. Rated very favourable by 61.2 per cent of Iranians surveyed in 2015, Mr. Rouhani’s favorability dropped to 4.6 per cent in the most recent poll. By contrast, the favourable views of Mr. Raisi soared from 38.3 per cent in 2014 to 77 per cent last month. IranPoll and the Center have been conducting annual of surveys since 2014.

Mr. Raisi may have taken pleasure from that but more importantly, the poll implicitly suggested that he does not have much time to produce results before his significant public support starts to wane.

Of those polled, 66.7 per cent expected Mr. Raisi to improve Iran’s international standing, 55.7 per cent said he would be in a better position to negotiate with world powers, and 45.2 per cent predicted that he would enhance Iran’s security. Those expectations may have been to some degree validated in the public’s mind by last month’s acceptance of Iran’s application for membership in the Shanghai Cooperation Organization (SCO) that groups China, Russia, India, Pakistan and several Central Asian states.

The survey results seemed to suggest that ordinary Iranians were framing their message to the United States differently from the assessment of prominent scholars and analysts. The divergence may well be one primarily of timing but nonetheless has implications for policymaking in Washington. The message of the respondents to the poll was one of immediate impact while analysts and scholars appear to be looking at the middle term.

Without referring to the poll, Vienna-based economist and strategic consultant Bijan Khajehpour argued this week, seemingly contrary to the poll, that “mismanagement and the Covid-19 pandemic have both contributed to Iran’s poor economic performance in recent years, but it remains that US sanctions…will be the key factor in determining Iran’s future prospects.”

Mr. Khajehpour went on to say that “high inflation, capital flight and the erosion of household purchasing power alongside mismanagement of resources and the deterioration of the country’s infrastructure have the potential to spark more protests and further undermine the already faltering legitimacy of the Islamic Republic in the eyes of the public.”

No doubt, the jury is out on how Iranians respond if and when Mr. Raisi fails to live up to their expectations. If the past is any indication, Iranians have repeatedly taken to the streets at often substantial risk to liberty and life to make their discontent with government performance evident as they did with the low turnout in this year’s election that brought Mr. Raisi to power.

The risk of renewed protests was reflected in the fact that responses to various questions regarding the electoral system, the limited number of presidential candidates (because many were barred from running), and the public health system showed that it was often a slim majority at best that expressed confidence in the system.

Add to that the fact that 68 per cent of respondents to the poll said that the objectives of past protests had been a demand that officials pay greater attention to people’s problems.

Yet, at the same time, they were telling the United States that its efforts to generate pressure on Iranian leaders to moderate their nuclear and regional policies by imposing harsh sanctions had for now backfired. Iranians were backing a tougher negotiating position by the Raisi government.

Ultimately that could be a double-edged sword for Mr. Raisi. He has to prove that he can be tough on the United States and simultaneously improve the lives of ordinary Iranians. Failure to do so could have in Mr. Khajehpour’s words “unpredictable consequences.”

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