Showing posts with label balance of power. Show all posts
Showing posts with label balance of power. Show all posts

Thursday, July 30, 2020

About Dollar, Sort Of.

I am by far not the only one who saw this fate for US Dollar and, frankly, it wasn't that difficult to predict. Now there are some tangibles on this matter. 
After years of talking about abandoning the US dollar, Russia and China are doing it for real. In the first quarter of 2020, the share of the dollar in trade between the countries fell below 50 percent for the first time.To give an indication of the scale of the adjustment, just four years ago the greenback accounted for over 90 percent of their currency settlements.According to Moscow daily Izvestia, the share has dropped to 46 percent, tumbling from 75 percent in 2018. The 54 percent of non-dollar trade is made up of Chinese yuan (17 percent), the euro (30 percent), and the Russian ruble (7 percent).
Pretty much self-explanatory. Russia can afford to sell whatever she wants for whatever currency she wants. She can pump oil to China and get payments in Yans or Euros if she decides to do so. The answer is simple--Russia is a superpower and she behaves as such.  
Movement away from the dollar can also be seen in Russia's trade with other parts of the world, such as the European Union. Since 2016, trade between Moscow and the bloc has been mainly in Euros, with its current share sitting at 46 percent.
That brings us to this point Michael Hudson made recently when speaking on Western economic "science". Remember?
Indeed, they don't. It is nearly impossible to explain to Wall Street banker what military-economic power balance is and how it influences prices and currencies.  For some dude with degree in "economics" from Western university, who is getting ready to plunge into the world of financial speculation, trading in figments of imagination and intangible myths that is, and who is brought up, in the words of General Latiff, on a steady diet of Hollywood portrayal of a war, connection between hyper-sonic missile technology and economic implosion of the United States is beyond his (her) sensory grasp. But the connection is there and it is very direct. The US can bomb Iraq into the stone age for Iraq's desire, same as Libya's Qaddafi, to sell their oil for currencies other than US Dollar, but Russia cannot be bombed. Well, she can be bombed, but the United States will also cease to exist--so here is a direct connection. Russia unloaded all of her US Treasuries and trades with anybody she wants in whatever currency she desires. 

Many people from "elites" still cannot recognize a simple fact that the MAIN pillar of US Dollar system, apart from "trust", is not even US manufacturing capacity, which is largely gone, but US military power on which US Dollar's primacy was based. Not anymore. US military is turning into a hollow force with an astonishing speed. It is somewhat reminiscent of the process of a decline of the former Soviet Armed Forces in 1990s Russia. While not at that level of decay yet, there is nothing realistically which can prevent US Armed Forces from hitting  such a level. This is yet to be seen if it goes there but the United States is in no position anymore to enforce anything militarily even against regional power such as Iran without sustaining huge losses, both material and reputational. Against China? Hm. Not within First Island Chain. Now consider the fact that Europe has Euro, Russia has Ruble, China has Yan and China and Russia begin to trade in mutual currencies, while US-China trade war accelerates and there you go--the "after-dollar" global picture emerges and... well, just look at this picture:
Isn't that cute how gold "suddenly" (within a year) decided to grow, despite all attempts to suppress its "price". And I am not even talking about the oil price. Somebody is laughing all the way to the bank. In related news, one of the reasons for the US to feel somewhat uneasy--here is a video of Russian Navy's incessant combat drills, this time with Frigate Admiral Essen facing off with two supersonic P-35 anti-shipping missiles fired from famous "sotka" (100), aka Utes, site at the Crimean shore. 
I have to admit--I love this new ship uniform. Seems elegant and easy on your skin. But the thing which conveyed profoundly what Russians think about current historic moment was this simple comment by some Russian person under this video by Russia's Defense Ministry:
Раньше, при советском союзе, я не смотрела программу время, потому как, всё было хорошо ... урожай хлеба высокий, строительство жилья идёт полным ходом, атомные и водородные бомбы есть, армия сильная ... а вот после распада СССР, до прихода Путина, в России был кошмар.Когда к власти пришёл Путин, жизнь в России стала налаживаться ... и вот сейчас, ко мне пришло спокойствие, как при советском союзе ... урожай хлеба высокий, строительство жилья ведётся, вооружение нашей армии идёт по всем направлениям ... это просто кайф👍Главное, больше никому НЕ позволить грабить нашу Россию, как было в проклятые 90-е ... и никаких майданов в России.Сейчас очень спокойно жить в России ... это кайф👍
Translation: It used to be that in Soviet times I didn't watch program "Vremya" (Time, main Soviet and Russian official news broadcast), because everything was good... the harvest was great, housing construction proceeded apace, we had atomic and hydrogen bombs, the army was strong... but after the collapse of the USSR, before Putin, it became a nightmare. Then Putin came, the life started to return to normalcy... and now my calmness returned to me as if back in the USSR... the harvest is great, the construction of housing goes ahead, the rearmament of our armed forces proceeds in all directions... this is bliss. Most important, not to allow anyone to rob our Russia as was happening in condemned 1990s... no any maidans in Russia. It is so peaceful to live now... it is a bliss.

This is a profoundly Russian observation. It is shared by majority of Russians and that is what, in the end, decides the issue. Russia can exist only as superpower or none at all. This lesson was learned well.  

Tuesday, December 4, 2018

A Teaser.


As I promised earlier, a short teaser from my new manuscript dealing with balance of (military) power. This one is not edited and is a small part of a chapter on the so called Thucydides Trap, or rather doctrine-mongering and multiplication of essences by political "science" field, and it may not even see the light in this present form. But still, here is some food for thought for those who are interested.                                                                               ---------------------------------------------------------------------------

In March 2018 an influential American magazine, The Diplomat, published a short piece by Francis P. Sempa on Thucydides Trap. In this piece Sempa, citing a collection of articles and essays by US senior military officers titled Avoiding the Trap: U.S. Strategy and Policy for Competing in the Asia-pacific Beyond the Rebalance, noted in amusement that:


The most remarkable aspect of this study is the lack of “hawkishness” among the contributors, most of whom are high-level military officers. Only one article asserts that China intends to become the Asia-Pacific’s regional hegemon and is following a step-by-step expansionist strategy to displace the United States in the region. Two of the contributors emphasize the need to strengthen and improve U.S. defense ties to Japan and India in order to counterbalance China’s military growth.[i]


It is, sadly, not surprising that Sempa, an attorney by education and a political "scientist" by occupation[ii], is surprised by the fact of military professionals being reluctant to take political science white board theories to heart. But military professionals are absolutely correct in their reluctance and they have ample reasons to be suspicious of international relations concepts cooked up in the deep recesses of Western in general, and American in particular, political science kitchen populated by people who, for the most part, have zero military backgrounds and experiences.

But what is this Thucydides Trap? The term was coined by the American political scientist Graham Allison and is a so called geopolitical model based on ancient Greek historian Thucydides conclusion that:

The growth of the power of Athens, and the alarm which this inspired in Lacedaemon, made war inevitable.[iii]  

Here, the obsession of contemporary American political science class with Peloponnesian War, an ancient history event in the foundation of the neoconservatives' inspired American foreign policy and military disasters of the 21st century, manifests itself yet again. In Allison's view the dynamics of evolution of power balance between the United States and China can easily be viewed in parallel to relations between Athens and Sparta which led to the Peloponnesian War more than 2400 years ago. It is difficult to completely rationalize American elites' obsession with that war but comparing China to Athens and the United States to Sparta is not only a-historical, it is simply false. There is very little doubt that American political and military elites are concerned with the growth of China's economic, political and military power. This is understandable. But the so called Trap which makes war between China and the United States almost inevitable is for the most part a figment of imagination of people who have, at best, a very vague understanding of real warfare of the 21st century--this ignorance is a defining feature of the American political class.

China's Xi was explicit when stating, correctly, that Thucydides Trap simply doesn't exist.[iv] Moreover, the whole concept of this trap didn't sit well even with some of Russia's most radical pro-Western liberals known for blind uncritical following of most American geopolitical and ideological concepts. As one of them stated, Thucydides Trap is Political Scientist's Trap.[v] Of course, war between China and the United States may still happen, but as even the summary to the Study which so surprised Francis Sempa with its "lack of hawkishness" states:

Long-range success in the Asia-Pacific region will only come from effective international cooperation.  This cooperation must include China. In keeping with the 2015 U.S. National Security Strategy, we confirm the U.S. position to “welcome the rise of a stable, peaceful, and prosperous China.” To that end, the overarching strategic task for the United States is how to accommodate China’s rise. America must not constrain the responsible rise of China in the region and globally, but at the same time should provide a check on Chinese power by protecting U.S. and partner national interests. This check will come through the effective use of a rules-based international order, but ultimately it will be empowered by a position of U.S. strength across the elements of national power.[vi]

The elements of national power is what really matters in this statement and it requires a serious review of such elements in order to understand that war with China, whose power undeniably continues to grow, can only happen within conventional paradigm, otherwise, with the war going nuclear, none of the objectives by either side will be attained and it will threaten global thermonuclear conflict. A nuclear argument is what really makes all talks about Thucydides Trap a foolhardy business, because MAD (Mutually Assured Destruction) is the factor which makes any parallels to ancient warfare history irrelevant. It is not the only factor, but it is surely the most important one. 

A possible nuclear scenario between the United States and China does not require any serious elaborations since even laymen have enough understanding of catastrophic global consequences of two (or more) nuclear superpowers engaging in nuclear exchange. It is scenario which must be avoided by all means and it seems those who in the United States understand that best of all are American military professionals. Same goes to Chinese military. But while there are few more-or-less competent and influential people who speak about fallacy of Allison's Trap, one has to point out a simple fact that the Thucydides Trap of sorts is known to mankind since the very dawn of human civilization, way before Ancient Greece, and it was observed in animal world, in which aging leaders of a herd are challenged by younger and more ambitious competitors. It was and is also observed in human world all the time, enough to consider sports whose very premise is built on challenging the status quo, be that boxing, track and field or soccer. In general, Allison's Thucydides Trap is known to humanity as competition and not all competitions end up in wars. This is not to mention the fact that Athens, Sparta and Thucydides himself did not operate with the knowledge of nuclear weapons, net-centric warfare, stand-off high-precision weapons and combined arms operation, which even in purely conventional form can paralyze and defeat modern nation-state, or can cause human losses on unimaginable scale. These factors are the ones which must change any kind of generalizations related to military and war. This brings us to more important issue—historical parallels. 

Drawing historical parallels is an extremely dangerous business wrought with huge risks of miscalculation and learning wrong lessons. History, certainly, does provide some valuable lessons but at this stage the whole term history, as it was understood even fairly recently, does not reflect an immense complexity of human development and activity for the last roughly hundred years and those developments cannot be described anymore within traditional framework because more and more causalities are being affected not just by human nature but by technology attached to it. Technology becomes increasingly complex and thus remains beyond the grasp of many humanities educated historians who lack cognitive apparatus for understanding and describing it and technology's effect on the events. Modern war is highly technological. What used to be few tactical and operational factors to be considered by a military leader such as Napoleon, Kutuzov or Grant, today becomes a vast and complex set of variables needed to be considered by leaders while making a decision. There is a reason why contemporary military leaders have very strong backgrounds in fundamental sciences and many of them have serious engineering backgrounds.

While general principles of warfare and what is called strategy since the times of Clausewitz remained largely static and generally similar for many modern armies, the approach to application of those principles grew in complexity exponentially.[vii] In times of muskets and linear tactics, an officer commanding a company or battalion would have had little trouble understanding a general plan on the battle or even campaign. Today, such understanding requires long years of highly specialized education and very serious background in military technology. Without this background there is no serious understanding of the modern warfare—it is simply a hard fact of life. This is where drawing historical parallels becomes a very dangerous business. Many even non-military people understand this danger and, in fact, some even reflected this danger in the modern art. 

A 1980 sci-fi Hollywood flick The Final Countdown, with Kirk Douglas and Martin Sheen starring in it, is an excellent example of such an awareness. While movie deals with the possible time paradox when nuclear powered aircraft carrier USS Nimitz is transported, due to a freaky storm, from 1980 to December 7, 1941, few hours before Japanese aviation attack on Pearl-Harbor, historic ramifications of such an event become clear immediately. Even the most unsophisticated observer could easily arrive to the idea, without understanding even basic technological principles, that a single US Navy's nuclear aircraft carrier and its air wing which included F-14 Tomcat fighters would have very little difficulty with destroying 360 Japanese piston aircraft due to modern American carrier advanced electronic sensors and overwhelming advantage modern jet aircraft had over 1930s-designed combat planes in speed, maneuverability and weapons. It came down to a complete tactical, operational and technological mismatch, even if portrayed in a fictional settings. I will stop here with disclosing the plot of that movie for those who are yet to watch it.

Thus the irresistible question arises—what lessons could have been drawn from Japanese actions on December 7, 1941 in tactical and operational senses to be applied to modern times? Of course, the lesson of a strategic and operational surprise is valid, but this lesson is as old as the Trojan Horse concept. The truth is, few of those lessons, other than ever present necessity to develop better weapons and sensors, could have been drawn. And here is the point—technology became a main, albeit not only, driver behind tactical and operational requirements. Of course issues of morale, culture, and social dimension of war and, in the end, leadership never lost their significance but it goes without saying that in the fight between even the squadron of Mitsubishi A6M Zero and a pair of Grumman F-14 Tomcat jet aircraft, chances of WW II piston airplanes surviving approach zero. Only answering question why things work one way and not the other can one begin to see why falling back on history, granted it is based on facts, not fantasies, is never a good idea especially when trying to develop rather broad and shaky concepts such as Thucydides Trap.......


[i] How to Avoid the Thucydides Trap: The Missing Piece. Francis P. Sempa. The Diplomat. March 07, 2018. https://thediplomat.com/2018/03/how-to-avoid-the-thucydides-trap-the-missing-piece/

[ii] Sempa, Francis.
https://www.encyclopedia.com/arts/educational-magazines/sempa-francis-p-1959

[iii] The History of the Peloponnesian War. Thucydides. The First Book. Chapter One. http://classics.mit.edu/Thucydides/pelopwar.1.first.html 
[iv]Ловушка для политолога (The Trap for Political Scientist). Alexey Tsvetkov. In Liberty. November 12, 2015. http://old.inliberty.ru/blog/2089-Lovushka-dlya-politologa
[v] Ibid.

[vi] Avoiding the Trap: U.S. Strategy and Policy for Competing in the Asia-pacific Beyond the Rebalance. Strategic Studies Institute and U.S. Army War College Press. February, 2018, pp.  xiv-xv. 
[vii] Principles of War.  https://www.encyclopedia.com/history/encyclopedias-almanacs-transcripts-and-maps/principles-war

Thursday, August 2, 2018

Getting Situationally Aware.



Remember this? 
And this:

However debatable such an approach may be, there is no denial that this proverbial G(t), that is geopolitical potential is quantifiable and here is an interesting piece of analysis by former Indian diplomat M. K. Bhadrakumar, who in his piece US-Russia-China triangle in flux, again comes to some interesting conclusions and provides some valuable insights. He starts with giving a trivial and unimaginative Kissinger "triangulation" of 1970s some treatment, not forgetting to mention earlier Eisenhower's triangulation of 1950s: 


Kissinger argued that the United States, which sought to profit from the enmity between Moscow and Beijing in the Cold War era, would therefore need “to play this balance-of-power game totally unemotionally. Right now, we need the Chinese to correct the Russians and to discipline the Russians.” But in the future, it would be the other way around….Now, this recapitulation is useful today, because Trump’s moves so far are indicative of an agenda to revert to the Eisenhower era – containment of China by forging an alliance with Russia.


As I stated not for once, American geopolitical "theory" is highly unimaginative and rigid. Its main fallacy is an assumption that the US is eternal and ever omnipotent—both being very false notions. It was inevitable in the scholarship represented by such "academe" as Brzezinski or Fukuyama, in general, and a collection of raging Russophobes in relation to Russia in particular. Kissinger may think that US can continue to play this geopolitical triangle or that this triangulation is useful today—an idea Kissinger exercises now—but the reality is much more complex and it is not anymore about this proverbial, and largely obsolete, US-Russia-China triangle. The reasons (some of them) it is obsolete is because: 


1. NO meaningful "alliance" (or whatever other tired term could be used here) between Russia and US is possible today in principle. It is partially due to Russia's increasing G(t) and S(t) with the same diminishing for the US. And, because Russia knows the score in this dyadic relations. US simply cannot afford to "buy" Russia. It could in 1990s, it failed due to hubris and delusion. The question today is if the US will be able to pull itself by the shoelaces from the swamp she is in. 


2. Both Russia and China are the key parts of Eurasia and it is not about just Russian-Chinese relations—it is about new Eurasian economic and security configuration in which the US is viewed as merely another power which needs to be prevented from interfering into the Eurasian affairs. Indeed, India is in play, so is Iran and so is…drum roll—Europe. But there is some worry on China's part and it is understandable:

The government-owned China Daily carried an editorial – Has the meeting in Helsinki reset US-Russia relations? – where it estimates that at best, “Helsinki summit represents a good beginning for better relations between the US and Russia.” Notably, however, the editorial is pessimistic about any real US-Russia breakthrough, including on Syria, the topic that Putin singled out as a test case of the efficacy of Russian-American cooperation.

This unease can be explained in the next passage:

On the other hand, the Chinese Communist Party tabloid Global Times featured an editorial giving a stunning analysis of what has prompted Trump to pay such attention (“respect”) to Russia — China can learn from Trump’s respect for Russia. It concludes that the only conceivable reason could be that although Russia is not an economic power, it has retained influence on the global stage due to military power:

  • Trump has repeatedly stressed that Russia and the US are the two biggest nuclear powers in the world, with their combined nuclear arsenal accounting for 90 percent of world’s total, and thus the US must live in peace with Russia. On US-Russia relations, Trump is clearheaded.

On the contrary, if the US is piling pressure on China today, it is because China, although an economic giant, is still a weak military power.

And here is the issue for China and people who formulate strategies there—using mere the size of GDP or the size of nuclear arsenal is not sufficient enough to become really strong military power, that is to gain this main component which plays the most important role in this G(t)--XM. Here I may go on a tangent and recall a very interesting example from the world so completely removed from military that is may seem almost irrelevant—yet, it is very germane to such a discussion. 


About 10-11 years ago two of the greatest jazz and fusion guitar players of generation, Alan Holdsworth and John McLaughlin, had a friendly discussion on the pages of one of the guitar magazines in which they concluded, rightly so, that no matter how good one is in using sustain on their electric guitar, together with other possibilities sound processing affords an electric guitar player, it only matters if you can play acoustic, completely unplugged—that is the real measure of one's ability. Absolutely the same applies to military power—one is either a great conventional military power or, once a serious look is taken both at the nature of a military conflict and evolution of military technology, is a mere static observer of a great global power game in which conventional capability becomes a decisive factor. In this, Mr. Bhadrakumar's final conclusion is wrong:

Indeed, if the crunch time comes, China will be on its own within the Kissingerian triangle. And China needs to prepare for such an eventuality. On the other hand, China’s surge to create a vast nuclear arsenal could make a mockery of the grand notions in Moscow and Washington that they are the only adults in the room in keeping the global strategic balance.

China is (relatively) weak militarily NOT because she doesn't have enough nuclear weapons—this could relatively fast, with Chinese financial wherewithal, be addressed. Chinese relative military weakness comes from a huge technological, cultural and organizational issues of her conventional capability, which, despite its polished outward appearance, is nowhere near with that of the United States or Russia. It is technology—always was, always will be. It is also an operational experience and the way conventional forces are deployed, which matters great deal—China has no real operational experience here. There are reasons to believe that some technological gaps will never be closed—China continues to struggle mightily in aviation, submarine, space technology and other key technological and operational concepts. Moreover, one has to answer the questions of why China needs to prepare for any "Kissingerian" eventuality and what is this "grand notion" in Moscow? All signs from Moscow are unequivocal in their confirmation of Moscow' commitment to Eurasian economic integration and maintaining the peace—this is impossible without China. 


But, paradoxically, the main answer lies within new Russian geopolitical posture, which in today's parlance could be characterized as a pragmatic egoism and in this new Russia's vision of herself China is by far more important, both as an energy and military technology market, than the United States will ever be. Russians finally learned a very healthy cynicism when it comes to Russian interests and in relation with China will continue to observe the dynamics of mutual trade—unlike the US, China does have means to "buy" Russia geopolitically, granted, of course, on Russia's conditions and Russia doesn't mind having China's strategic back. China knows it. This immortal principle "you scratch my back—I scratch yours" applies to Russian-Chinese relations completely, while it doesn't work and will not work in US-Russian relations, thus killing any vain discussion on some "triangle". Indeed, why break a good thing with mutual scratching? Especially when at stake is a new brave world where at least some semblance of balance and real order will be restored. As I stated not for once, the times of an alcoholic low life and cabal of thieves in Kremlin are over—good that at least this idea started to dawn on someone in Washington. Maybe someone is getting, finally, situationally aware there. As they say—better late than never.