Saturday 19 December 2020

Trump's Legacy and the Futility of Biden's Bipartisanship

 

Historically, Republicans project the image of containing public spending, keeping the public debt low, and creating more wealth for society. From Reagan to Trump, history shows that spending for defense, intelligence, domestic security goes through the roof, at the same time that taxes of the rich are cut while indirect taxes paid by the mass consumer rise, and corporate subsidies replace social spending. 

 What has followed is a sharp rise in the public debt at the same time there is wealth concentration which leaves more people in or near the poverty level. When Trump won the election in 2016, government spending hovered around $4 trillion, with a $500 billion deficit, money borrowed from various domestic and foreign sources, including America’s largest trading partner China. In 2019, government spending was about $9 trillion. 

Because Trump and the Republicans gave back $2 trillion to the richest 1%, revenues were $3.5 trillion or the same as in 2016. This left a deficit of $5.5 trillion. By 2019, the Republican government was spending 150% more than the IRS was collecting, compelling the FED to increase the money supply to keep rates low amid underlying monetary inflation. Driven by Wall Street, FED policy also caved to Trump’s encouragement of a low-interest regime as a means of feeding the “financialization”- driven US economy.

The result has been the dollar's value falling against other currencies, held in check somewhat by the fact that the dollar is a reserved currency and other countries adjusting their currencies so as to maintain fair terms of trade. US debt $27 trillion in October 2020, or 136% of GDP as compared with $20 trillion or 104% of GDP in 2017, representing a 32% rise in four years, largely because of the $2 trillion in tax cuts to the richest 1% in 2017, combined with corporate welfare subsidies, rising defense budget and economic slump owing to the pandemic. 

Under Trump, not only has the US experienced a sharp rise in budgetary deficit and public debt, but also in the largest wealth concentration in its history. This while the poverty rate for 2020 is 10%, expected to rise much higher in 2021 as in the rest of the world, amid rental evictions, home foreclosures, and small business bankruptcies. For whites, the poverty rate is around 7% percent, while for Blacks at 16% and Hispanics 14%. These rates will rise sharply in 2021, as it is very likely that living standards for the bottom half of the population will continue to drop.

In spite of these realities in the American plutocratic system, 73,000,000 people voted for Trump. Republicans gained seats on the “down ballot” in the House of Representatives and at the state level, indicative that right wing politics has deep and long roots beyond Trump Republicanism. 

Considering the immense challenges of inequality and rising poverty that in-coming President Biden will be facing, his solution is the delusional 1970s bipartisanship method of governing. In essence, this translates to using Republican compromise strategy as leverage to marginalize the progressive policy agenda geared toward social justice that Biden confuses with appointments of people of color to key Cabinet positions. 

I fully expect that in the next congressional election in 2022, Republicans will win both houses of congress. By 2024, if there is general stagnation of living standards for the vast majority, as I expect there will be, it is entirely possible that someone more open to Fascism than Trump, without the boisterous personality of Trump, will emerge to lead the Republican Party.

Sunday 6 December 2020

Ten Realistic and Unrealistic Expectations of the Biden Administration

Those who supported Biden did so primarily to see America free of the Fascist-style president and Republican Party determined to bring the country as close to the Third Reich as possible. To be sure, there were many who backed Biden-Harris because they espouse the platform of the establishment Democratic Party. However, the demographics have changed, and the middle class has shrunk just as the majority of the population under the age of 25 is non-white. In short, the Democratic Party is not operating with the same demographic base today as in the 1970s.

Republicans voting for Biden did so to defeat Trump who was dogmatic about forcing all in the party accept him as the leader who determines the party platform and direction. Disgruntled Republicans also figured that Biden is a mainstream establishment Democrat closer to mainstream Republican issues on the economy, foreign affairs and defense. Progressive Democrats (mostly Sen. Sanders’ supporters) voted against Trump by voting for Biden, while hoping he would yield on some key progressive issues, including raising taxes on the rich, raising minimum wage, supporting Obamacare, protecting the environment and cultural/racial/ethnic diversity. Given the disparate policy goals of the three groups backing Biden, can there be policy divergence, especially if Republicans keep the Senate and block Biden’s agenda?

1.       It is realistic to expect some movement toward taxing the highest income groups, but unrealistic to expect raising taxes on the rich without Biden making concessions o some aspect of social programs, social security, Medicare/Medicaid.

2.       It is realistic to expect diversity of cabinet appointments as a pretext concession to the progressives, but totally unrealistic to expect concessions on a progressive agenda that is class-based instead of identity-politics based.

3.       It is realistic to expect the end of American unilateralism as a strategy to force other nations into submission, but unrealistic to expect the withering of American militarism and imperialism.

4.       It is realistic to expect the end of corporate welfare for non-renewable energy, but unrealistic to expect the end of corporate welfare which will simply be redirected to high tech, renewable energy and bio-tech.

5.       It is realistic to expect the end of persecuting illegal immigrants, but unrealistic to expect the end of marginalization of ethnic minorities.

6.       It is realistic to expect more high-visibility appointments of blacks, but unrealistic to expect the end of system racism, wage, housing, college, and criminal justice discrimination based on race.

7.       It is realistic to expect US re-engagement with international organizations on the environment, health and trade, but unrealistic to expect that the US will operate outside the confines of the neoliberal model that accounts for continued downward socioeconomic mobility.

8.       It is realistic to expect a US-China relationship rooted in multilateral diplomacy, namely US rallying all of its allies to force China to abandon quasi-statism (51% government ownership) and into the neoliberal model it wishes to impose on Beijing. It is unrealistic to expect much improvement in US-China relations, considering that China has far greater global leverage than the US and will use it as needed while negotiating its way to retaining the status quo.

9.       It is realistic to expect some movement toward rapprochement with Iran, but unrealistic to expect a lot of results, as Israel and Saudi Arabia will push back hard.

10. It is realistic to expect a tougher policy toward Russia, but unrealistic to expect Russia to cave to US demands on its strategic zone of influence inside the old USSR borders.

Tuesday 15 September 2020

The Abraham Accord: Realignment, Containment, and Militarism

 On 19 August 2020, an article in Foreign Affairs argued that a “botched peace plan” in the Middle East accidentally produced the Abraham Accord between the United Arab Emirates (UAE), Israel and the US. On the surface, the Abraham Accord appears to be a ‘botched peace plan’. However, it is consistent with the goals of the Trump administration to forge closer ties between pro-US Arab countries and Israel for several reasons that help promote America’s Middle East and global geopolitical and economic interests, while coinciding with Trump’s reelection efforts to contain Iran, limit China’s regional role, and achieve a diplomatic victory amid high unemployment and an economic recession right before the election. These goals do not amount to anything of historical significance that entails lasting peace, but do signal a hasty attempt to preserve Pax Americana amid China’s rising global economic power that will eventually translate into geopolitical power.

Among other Arab nations, the UAE has been quietly moving toward closer ties with Israel for the past decade, especially amid Saudi-Israeli-US efforts to isolate and weaken Iran and its allies China and Russia that have coalesced in the UN Security Council against the US. Considering that the Trump administration withdrew from the Joint Comprehensive Plan of Action (JCPOA) - Iran Nuclear Deal - on 8 May 2018, largely to pursue a tougher containment policy that would weaken Iran’s role in influencing the regional balance of power, especially in Yemen, Syria, Lebanon, Iraq, and Afghanistan, the Abraham Accord was a logical conclusion to salvage US efforts at a regional peace deal. The goal is in essence continued militarization as leverage to maximize the influence of regional US allies coalescing around Israel and Saudi Arabia.

At the same time, given that Iran has forged much closer ties with China and Russia, US containment strategy imbedded in the Abraham Accord follows the long-standing US policy of relegating the Middle East as its historic zone of influence ever since the Truman Doctrine (1947) that created the “Northern Tier” as a buffer zone against the Soviet Union. As reflected in the Accord, Middle East realignment under the aegis of the US uses Iran, and to a lesser degree Turkey, are catalysts to a containment policy along the lines of Cold War “containment militarism”, as Jerry Sanders argued in his book forty years in analyzing NSC #68 of 1950.

The State Department has made it clear that the Abraham Accord aims to counter Iran, although Israel and to some degree want Turkey included in the containment policy. However, this accord, as opposed to the Truman Doctrine of 1947 when Greece, Turkey and Iran were US strategic satellites, China’s economic and geopolitical expansion is what the US fears more than any other power in the world, including Russia. Former Russian Ambassador to Saudi Arabia Andrei Baklanov has argued that Russian trade would actually benefit from the UAE-US-Israel deal. Moreover, Russia advocated regional rapprochement since 1992 under Boris Yeltsin. At the same time, Russia’s concern that the Abraham Accord could signal an end to UAE as a peace broker between Iran and Saudi Arabia has forced Moscow to consider strengthening ties with Tehran. Therein rests Moscow’s ambiguity about the deal which China views in somewhat the same light. With expanding economic ties throughout the Middle East and Africa, China praised the Abraham Accord, especially since it sees Erdogan’s Turkey, not Iran, destabilizing the region with aggressive adventures of recapturing some of the Ottoman Empire’s glory. More so than Russia, China views the Abraham Accord as a containment policy toward Iran and Turkey, but also commercial containment of China in the region, as the US is committed to greater militarization of the Gulf States.

In delivering the Abraham Accord, Trump, who takes pride in bypassing America’s NATO partners and pursuing unilateral policies, has provided the US defense industry with pre-election gifts. Considering the Abraham Accord was contingent upon US sales of EA-18G Growler, made by Boeing, and a pledge to sell more advanced weapons to placate Israel, is it any wonder the Arab-American scholar Hussein Ibish noted that: “The president (Trump) thinks like a salesman, and this is what he wants in the Middle East.” In August 2020, the US announced the sale to UAE of advanced weapons (F-35 fighter jets and Reaper Drones, and EA-18G Growler jets — designed for stealth attacks by jamming enemy air defenses).

Privately approving the arms deal, Prime Minister Netanyahu publicly denounced US arms sales brokered by Jared Kushner, the president’s son-in-law and senior adviser. Some Democratic congressmen immediately objected on the grounds that Arab buyers of US weapons have used them in the protracted Saudi-led war in Yemen, mostly targeting civilians suffering the world’s worst humanitarian crisis. The UAE have withdrawn their forces from Yemen, but they are involved in the Libyan civil war where the US and its Western European partners have sunk into chaos and destruction since 2011.

Although the Abraham Accord reflects American unilateralism, US Western allies are limited in how much they can criticize Washington’s efforts at realignment in the Middle East, even if such efforts signal very little peace as a goal and greater possibilities of militarism. Domestically, not just Trump’s supporters, but even establishment Democrats backing Biden, have no objection to the US selling more weapons to Middle East allies, while forging new coalitions. This regardless of the objections that some Democrats make about lack of consultation that is typical of the Trump administration across the board.

Some have compared the Abraham Accord with the Camp David Accord during the Carter administration when Egypt normalized relations with Israel in March 1979. Both the Camp David Accord and the Abraham Accord are partly symbolic owing to realignment and the projection of “making progress” toward resolving the long-standing Arab-Israeli conflict owing to the Palestinian question. While this is one dimension, the reality is that the Middle East will not change for the better because of the Abraham Accord. The US is using the Accord as a way to maintain its historic role to determine the regional balance of power, contain/isolate Iran while keeping China’s role limited, sell more weapons, and project a foreign policy victory to the American people right before the presidential election.  

When considering whether more Arab states will follow the UAE example, it is important to ask whether the Middle East became more peaceful and the plight of the Palestinians ended following the Camp David Accords in 1979. It is inevitable that the so-called diplomatic breakthrough projected in the Abraham Accord will serve as an incentive to other nations closely allied with the US and Saudi Arabia to normalize relations with Israel, no matter what Tel Aviv does with the Palestinians.

Surprised by the accord, Palestinians denounced it as treason, as did Iran and Turkey. It is expected that besides UAE joining Egypt, Jordan and Mauritania in recognizing Israel, other Arab states, including Oman, which has ties with Iran but welcomed UAE’s move, Sudan and Morocco will follow as they see benefits to such realignment and nothing to gain by ideologically backing the Palestinians whose global leverage is currently at its lowest level in history. Like the UAE, other Arab states will argue that having normalized ties with Israel and by extension stronger ties with the US, they can be a voice of influence from within such an alliance to mitigate Israel’s apartheid policies toward Palestinians.

No matter who is president, the historically unwavering US commitment to Israel will drive foreign policy. This means offering weapons sales as incentives to other Arab states to join the Abraham Accord. Militarizing the region will escalate a regional arms race and further destabilize all of them; much to the delight of weapons manufacturers, but to the detriment of the people in those countries where civilian economies will suffer in the process. 

Besides a far right wing Norwegian politician nominating Trump for the Nobel Peace Prize, many within the US and in the pro-US camp around the world have applauded the UAE-Israel-US deal as a historic foreign policy achievement. We need to keep in mind that in 2009 President Barak Obama won the Nobel Peace Prize and then became militarily involved in both Libya and Syria, while CIA covert operations raged during the Arab Spring uprisings. In his memoirs, in 2015, Geir Lundestad, the non-voting Director of the Nobel Institute and secretary for the Nobel Committee, noted that he had reservations about awarding Obama the prize. After 2009, Geir Lundestad witnessed Obama’s reckless military adventures and failed commitment to peace, forcing him to argue that the US president had not lived up to the Nobel Peace Prize values.

Highly unlikely that Trump will receive the Novel Peace Prize, he has been praised by people already committed to his administration ideologically and politically. Unlike Obama, Trump as a unilateralist has been more reluctant to engage in US overt and covert military operations, partly because he sees the competition with China taking precedence over all other commitments. He has been more interested in strengthening the defense industry by providing more US contracts and lobbying other countries to buy more weapons. This will be his legacy, despite criticizing the military industrial complex for domestic political reasons and uncontrollable ego. 

 

  Coinciding with the pre-election season, the Abraham Accord will not have any impact in American voters, for they do not cast a ballot on the basis of foreign policy deals that have no impact on their lives. At the same time, with the exception of benefiting defense contractors, Israel and the Gulf States allied with Saudi Arabia, the Abraham Accord will do nothing to end Israel’s apartheid policy, any more than it will limit Iran’s regional role in determining the balance of power with China and Russia on its side. Large in its symbolism, the Abraham Accord will prove far less than the failed Camp David Accords of 1979.