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The Wrongologist

Geopolitics, Power and Political Economy

Saturday Soother – Dorian Edition, September 7, 2019

The Daily Escape:

Garden of the Gods, Colorado Springs, CO – 2019 photo by ForkMan. Cheyenne Mountain is in background.

(There will be no Sunday Cartoons this week.)

Trump’s decision to change our posture toward China from free trade to trade war is one of the most significant policy shifts in recent American history. And despite the hand-wringing by corporations and politicians, there’s a grain of value in what Trump is attempting to do.

For sure, it’s unclear if he really knows what he’s doing, but it highlights whether we have a strategy for our trade relations with China. American policy makers must look at and answer a few questions:

  • Why is our industrial supply chain located within our economic adversary?
  • Doesn’t our military readiness therefore depend on that adversary?
  • Why are American companies allowed to transfer critical technologies to China in exchange for short-term market access?
  • Why is Tesla building self-driving cars in Shanghai?
  • Why should Google be running an Artificial Intelligence (AI) lab in Beijing after canceling an AI contract with the Pentagon?

Our corporate overlords’ answer? Because the market wills it.

But markets choose one global power over another only for narrow financial reasons. The market will happily move its business to a surveillance state if it means bigger CEO bonuses and higher profits. In this competition, Corporate America’s ideological commitment to free trade is as big a handicap to us as the Soviet Union’s commitment to central planning was during the Cold War.

Republicans and their corporate partners reject the idea of America having an industrial-policy to support key strategic economic sectors. China has an industrial policy. It’s focused largely on AI, integrated circuits, telecom, and steel. We no longer have high end manufacturing, and we’re losing other strategic industries.

This means that Beijing is likely to pick our “winners” for us. Corporations use the old Ricardian comparative advantage to organize their supply chains. This means that we will watch helplessly as American innovations are transformed into economic engines in China, while our corporations will reap efficiency gains by locating their engineering and management operations next to their Chinese manufacturing.

Inevitably, the innovation in which we pride ourselves will depart as well.

A recent survey of 369 manufacturers found that American firms are moving their R&D operations to China not just to take advantage of lower costs, but to be in close proximity to their supply chains. About 50% of foreign R&D centers in China are now run by American companies. This has helped China achieve first place in market share for manufacturing R&D.

If we remain neutral regarding where our supply chains are located, “we innovate, they build” will become “they innovate, they build.”

So, an unintended consequence of Trump’s tariff war is that maybe American politicians will wake up to the strategic battle underway with China, and realize how our American corporations are lining up on the side of our competitor and economic adversary.

Enough of the outside world, time for a rainy Saturday Soother if you are on the east coast of the US. Wrongo is sitting on Cape Cod, and the weather service here has announced tropical storm warnings for Saturday. So, settle back and watch the Weather Channel!

Now brew up a mug of Panama Finca San Sebastian ($12/12 oz.) with its deep chocolate notes supported by subtle but persistent sweet floral tones. It comes from the brewers at Thermopolis, Wisconsin’s Jack Rabbit Java.

Now, as you watch Dorian news over and over until your mind is numb, listen to the great 1980’s hit from the Eurythmics, “Here Comes the Rain Again”:

Those who read the Wrongologist in email can view Annie Lennox here.

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Can US Workers Bridge A Cultural Divide?

The Daily Escape:

Peaks Island, ME – August 2019 photo by Kendall Lavoie. Peaks Island is a popular destination for day trips on the ferry from Portland. As you might expect, it has a small population in winter, tripling in summer, with many more day trip tourists. There is one taxi, a relatively new Ford Flex. It was purchased through donations by townspeople last year.

(Apologies for the sustained period of no reporting, the longest since the Wrongologist’s founding in 2010.)

Wrongo and Ms. Right watched “American Factory” on Netflix last night. The story begins with the closing of a Dayton Ohio GM truck plant in 2008, and the layoff of 2,000 plant workers. Seven years later, Fuyao Glass, a Chinese company that manufactures glass for trucks and automobiles opened in the Dayton factory. Cao Dewang, the Chinese Chairman of the Fuyao Group had a bold idea: Pair American workers with Chinese workers, who are brought to Ohio to train and work alongside their American counterparts.

The former GM workers are initially ecstatic. They’re happy to land a new factory job. Never mind that the closed GM plant was unionized, and paid more than $25 an hour, while Fuyao is non-union, with starting pay of $14 an hour. But, the laid-off people of Dayton are happy to have a new job.

Soon it’s clear that the operating results aren’t meeting Fuyao’s plan. There is an obvious and growing culture divide. First, Chinese workers have no problem working 12+ hours a day and at least six days a week, while the Americans are used to five days in eight-hour shifts.

Second, individual expression is difficult for the Chinese but hardly for Americans. During a seminar for Chinese workers to help them understand American culture, a Chinese manager assures them:

“You can even joke about the president. No one can do anything to you.”

That’s followed by amazed looks.

The movie starts by trying to learn, “will the new plant succeed?” But success has different meanings: Success for the Chinese owner is different from success for the American worker, who only wants to know, “will these be steady jobs?” Success for the management means something different. Can the factory fulfill their orders at the same volume and quality as Fuyao’s Chinese factory? What will it take for the new factory to become profitable?

These different goals, and the pressure to meet them drives the film. As one frustrated Chinese manager complains:

“American workers are difficult, and their output is low. I can’t train them.”

The American view? One fired US manager says:

“You can’t spell Fuyao without FU”.

OTOH, a move to start a union was soundly defeated.

American Factory is really about how culture drives what we expect to get from a job. Everyone wants to get paid, but what the Americans want from a job is different from what the Chinese are looking for. Americans see the job as an extension of self, and a way to earn. The Chinese see the job as part of the company’s drive to succeed. And also as a means for China to succeed.

There is a quite a bit of soul-searching in the film. The soul of the American factory worker, of American manufacturing in general and the future soul of the global economy are at stake. In addition, late in the film, Cao Dewang, the Chinese CEO wonders aloud:

“I don’t know if I’m a contributor or a sinner.”

He’s reflecting on what was lost between his young life in rural China and his later outstanding business success.

But, Cao and his Chinese managers aren’t villains in “American Factory.” It is a nuanced story, although clearly its sympathies are with the American workers. The film raises many issues: How can companies remain competitive in a global economy? Is it worth it to give taxpayer breaks for companies that relocate? Can global companies bridge the culture gaps that occur whenever a firm locates abroad?

Much of the interest in the film is due to its production company, Higher Ground, formed in partnership with Netflix by former President Barack Obama and Michelle Obama. The filmmakers,  Steven Bognar and Julia Reichert began shooting independently in 2015 while Obama was still president.

In closing, note that at its high point, GM’s Dayton plant employed 10,000 people. Fuyao Glass America’s Dayton plant now employs 2,200 Americans and 200 Chinese. They had originally promised 5,000 employees, and received tax incentives to open the plant.

Some of the Chinese have now moved their families to Dayton, and their kids attend Dayton’s public schools.

By adding automation and fully Chinese management, the plant turned a profit in 2018, three years after it opened.

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Saturday Soother – August 10, 2019

The Daily Escape:

Milky Way from the summit of Mt. Katahdin, ME – 2019 photo by aryeh95

Wrongo wants to provide some background to how Hong Kong (HK) went from being a UK colony to being a part of China. If you watch the news, you know that Hong Long’s anti-extradition protests are now in their third month. They are ostensibly directed at the HK administration, but they’re also aimed at the Chinese government in Beijing.

And the conflict appears to be escalating.

The Hong Kong — Mainland conflict partly reflects a huge gap in national identity. Frank Chung in a piece in Ejinsight, says it can be explained in part by how the nationality of most people in Hong Kong was changed in 1997 from British to Chinese: (emphasis by Wrongo)

“From China’s standpoint, Hong Kong had always been Chinese soil. Through 150 years of British rule, its people remained Chinese, regardless of British law. This fitted nicely with Britain’s policy, which was to see to it that the millions of Chinese “British citizens” in Hong Kong could not move to the United Kingdom. Nationality and immigration laws were changed.

Britain created a new category of citizens, called British Dependent Territory Citizens, in the 1980s. This transformed United Kingdom citizens into Hong Kong citizens. When Hong Kong was no longer a British dependent territory, yet another new category was created, British National (Overseas). The holder has no right to live in Britain and the citizenship cannot be passed on to the next generation.

China, too, changed its nationality law to deal with Hong Kong. The Standing Committee of its National People’s Congress in 1996 – the year before the handover – issued “Explanations” of how China’s Nationality Law would be applied in Hong Kong. That is to say, the law would mean different things in different parts of the country, a highly unusual legal situation.

The “Explanations” introduce a concept missing in the nationality law itself, that of “Chinese descent.” Thus, any Hong Kong resident of Chinese descent who was born in Hong Kong or China is a Chinese national, regardless of whether he possesses Canadian, Australian, British or other nationality. That means people who were foreign nationals were transformed into Chinese nationals in 1997.”

This was how China and the UK cooperated to facilitate the transfer of Hong Kong to China in 1997. Both wanted the people as well as the territory to be transferred wholesale. The millions of people in Hong Kong were considered nothing but chattel in the transfer.

And so it goes today.

China has all the leverage in the current test of wills. Their concern is not to let the HK demonstrations “infect” any cities on the mainland. And with the growth of the Chinese economy, HK’s leverage is steadily decreasing, as other Chinese cities surpass it economically, and trade directly with the rest of the world, a function that HK used to perform.

Two ways of looking at the current situation: One, HK’s not as important, and there’s little it can do to deflect Beijing’s control. Two, if Beijing doesn’t crack down, it will be seen as a weakness, rather than the wisdom of a mature nation.

Either way, the big advantage of authoritarian regimes is that they have fewer constraints. China historically has walked a line between centralized authority and provincial power. Centralized power will always win.

On to the weekend, it’s time for our Saturday Soother! With all the mass shootings news, and Trump trying to keep in the forefront of the same news cycle, our heads are spinning. We need to kick back and forget everything but how to kill crabgrass, and an AR-15 won’t help with that.

Start by brewing up a mug of Kenya Handege coffee ($19/12 oz.) from Austin TX-based Greater Goods Roasters. They say it is very sweet, tart, and rich. Now settle back near a large window and listen to Mary Gauthier perform her 2005 composition “Mercy Now” at the 2010 Americana Music Festival in Nashville, TN:

Given what El Paso and Dayton are going through, Gauthier’s poignant and direct message should resonate with all of us. Wrongo knows that you rarely click through and listen to the music, but today, it is really worth your while to listen.

Those who read the Wrongologist in email can view the video here.

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Monday Wake Up Call – July 22, 2019

The Daily Escape:

Grinnell Glacier Overlook, Glacier NP, Montana – 2019 photo by e_met

Americans don’t like geopolitics. Columns about the world situation have been Wrongo’s least-viewed since the start of The Wrongologist blog in 2010. Today may be time for Americans to wake up, and think about our evolving and dangerous situation with Iran.

You know the basics: The US pulled out of the Iran Nuclear Deal in 2018. We reinstituted sanctions, the most important of which came into effect in November 2018, covering sales of oil and petrochemical products from Iran.

Since then, Iran has found it difficult to sell its oil, since the payments would be cleared through a vehicle called SWIFT, which is the payments backstop of the international trading system. SWIFT provides a network that enables more than 11,000 financial institutions worldwide to send and receive information about financial transactions in a secure, standardized and reliable environment.

No one wants to buy oil, and settle the deal through SWIFT because the US will become aware of the deal, and penalize the bank(s) or companies that worked with Iran. Another payment system is emerging, INSTEX, which will circumvent US sanctions, but it may be too little, too late, given the precipitous impact sanctions have had on Iran’s oil sales.

Things have now heated up. First with the seizure of an Iranian-flagged oil tanker by the UK in Gibraltar two weeks ago. It was ostensibly on its way to deliver oil to Syria, and the US asked the UK to seize the ship. What followed was tit-for-tat: On Friday, Iran seized a UK flag oil tanker in the Straits of Hormuz.

The US media is calling Iran seizure an unprovoked “attack” on a British flagged ship. Britain justifies its Gibraltar action as just keeping the sanction regime in place.

Here’s where things become dangerous. The neocons in Washington and in the media are seeking immediate and tough action, portraying Iran as an imminent threat to free trade, and to the West’s oil supply. Trump regrettably, is ignorant of Iran and Middle East history, and may not have the ability to avoid employing military force.

There is a dangerous delusion within the Trump /Bolton/Pompeo National Security team: They believe we are so militarily dominant that Iran will not dare fight us.

That is a strategically dangerous place to land. Our best option is to resolve the current tanker seizures with diplomacy. The UK and Iran could agree to resolve the situation and release the respective ships. All other options involve shooting and possibly, a military escalation involving others, including China and Russia.

If key Iranian infrastructure is targeted, nobody really thinks Iran will sit passively, and let us attack critical targets.

Iran has a robust, if not totally modern, military that could engage in counter strikes on US/UK targets in the Middle East. That would certainly involve our naval assets in the Persian Gulf. Now, suppose US aircraft are downed inside Iran (Iran has Russia’s S-300 antiaircraft system, but not the newer S-400). Trump would come under intense pressure to escalate. Any US pilots that survived being shot down, would give Tehran a big bargaining chip. Would Trump bargain, or would he continue to fight?

Iran would be damaged, but it would survive. The religious leadership’s hold on Iran would be strengthened. Trump’s political fortunes could take a hit from that portion of his base that is against foreign entanglements, as well as the other 60% of America.

The DC neocons are certain we can bomb Iran into submission. That is a fantasy, just as it was in Vietnam and Iraq.

All indications are that the Iranians aren’t going to cave. They’ve proven for decades to be very pragmatic. They may choose to talk. If Trump is smart, he’ll take a sit-down with the Iranians before things get out of control, and before the DC neocons and their Israeli friends push things beyond a point of no return.

He might get a deal that looks suspiciously like the Obama Nuclear Deal. Then, he can come back and claim he got the best deal ever, a deal only The Donald could get!

If he sticks to his “I have to win, I have to be seen as beating the other guy” as his game plan, we are in for a long, dangerous summer.

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Monday Cartoon Blogging – May 13, 2019

Too much commencement fun has led to Sunday’s cartoons arriving on Monday.

Enforced Mother’s Day is the law in Georgia:

The Duke and Duchess of Sussex had a baby. Americans are envious:

Trump’s right to confront China. Too bad he’s using the wrong weapon:

Another cover up for the Orange Overlord:

Trump’s hiding a few things by using his tax forms to cover up. You can’t unsee this:

If its comfort food you’re after, Joe’s for you:

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Trump and Bolton Screw Up Geopolitics

The Daily Escape:

Sunrise, Reflection Canyon, Escalante arm of Lake Powell, UT – 2019 photo by Aaryeh95

(Reminding readers that this is the last column until Sunday when cartoons will be back on the menu. We are attending our second college graduation of the spring.)

The Week reports that President Trump is having second thoughts about sending troops to Venezuela. He complained to aides and advisers that:

“he was misled about how easy it would be to replace the socialist strongman, President Nicolás Maduro, with opposition leader Juan Guaidó, The Washington Post reports. ‘The president’s dissatisfaction has crystallized around National Security Adviser John Bolton and what Trump has groused is an interventionist stance at odds with his view that the United States should stay out of foreign quagmires.’”

“He was misled about how easy it would be to replace the socialist strongman”! Who could’ve seen that coming? Just about everyone but Trump, and the neocons around Trump. The Neocons are batting 1.000, again proving themselves to be miserable failures at geopolitics. They continue to mess up geopolitical foreplay on the way to their real goal: Regime change and war.

By listening to Bolton and Pompeo, Trump has placed Venezuela more directly in the hands of Russia. It seems that Trump’s 90-minute phone call last Friday with Vladimir Putin was meant to talk Trump out of regime change in Venezuela. A secondary benefit for Putin may turn out to be that Trump handed Moscow a permanent Atlantic military presence in South America.

What’s the upshot? It looks like Maduro was pushed into Putin’s arms. Maybe Trump and Putin can cut a deal to sort this out without a crisis.

It looks possible that Maduro got an offer from a smarter, stronger player in the geopolitical game: Vladimir Putin. Republicans are bound to be disappointed. Blowing up Maduro’s regime was high on the Bolton and Republicans’s list.

Of course, regime change is always on their list. They want regime change in North Korea. In Syria. In Venezuela. And in Iran. It would be the perfect distraction from all the talk about Mueller and impeachment. They think war is a great campaign issue for 2020.

Now, Bolton and Pompeo have shifted their focus to Iran.

On Sunday, the National Security Council announced that we were sending another carrier strike group and a bomber task force to the Persian Gulf in response to “troubling and escalatory” warnings from Iran. Bolton discussed the intelligence, saying that Iran appeared to be gearing up for war.

Help me. We all know that Russia is also more friendly with Tehran than we are. And Putin has already achieved near-total victory in Ukraine and Syria, and possibly has already bagged Venezuela. We were never going to be buddies with Iran, but will Tehran now move completely into Russia’s orbit?

To date, it looks like the worst thing Donald Trump has done is to hire John Bolton as his National Security Advisor. Of course, Bolton’s track record as a war-monger preceded him, so what’s happening now was predictable. The Neocons, including Bolton, want a war with Iran, to remake the Middle East.

Their project to remake the ME saw America destroy Iraq and Afghanistan. It fueled American regime change aspirations in Syria. It brought about the destruction of Libya. It’s also underway in Yemen.

What the Neocons are doing helps a new alliance to form. Its key members are China and Russia, but Iran is a part of it as well. The Chinese Belt and Road Initiative (B&R) is meant to create routes to Europe and a Chinese-led trade zone. It is meant to bypass sending ships through the straits of Malacca (which the US can shut down any time to strangle China’s trade). It looks like the land parts of the B&R will move goods more quickly to Europe, but not as cheaply, as sea transport.

So the question is: Can Bolton talk Trump into war with Iran? Will Trump lead us into a fatal miscalculation? Trump is walking a tightrope without a net.

Even without a war, the US’s continued abuse of its privileged position in the world payments system to sanction countries like Iran and Venezuela implies that China and Russia will develop an alternative payments system. It’s inevitable.

It’s only a matter of time before international payment alternatives become viable enough that major countries will simply ignore US sanctions.

The US looks to be the big loser in the geopolitical game of chicken that Trump is playing.

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Dems Should Talk Foreign Policy

The Daily Escape:

Lumen Museum of Mountain Photography, Italy – 2018 photo by Marco Zanta. The glass-enclosed extension is a restaurant.

Every Democratic candidate for the 2020 nomination is discussing domestic policy: Medicare for All, Free College, and all of the other jump shifts in policy, but what about global politics?

Biden isn’t unique among candidates in saying the 2020 election is about a return to the way things were before Trump, the Economist reports:

“’This too shall pass,’ Joe Biden told America’s allies at the Munich Security Conference in February. ‘We will be back.’ The applause he received reflects a longing to return to a world order that existed before President Donald Trump started swinging his wrecking ball.”

It is problematic to rely on the ideas of a Clinton operative, but the Economist quotes Jake Sullivan, a 2016 Hillary advisor who says that the thrust of the Democrats’ foreign policy approach is simple: reverse much of what Trump has done. Sullivan talks of a “back to basics” approach: Value alliances, stress diplomacy:

“Compared with domestic policy….there is less focus on new ideas.”

All of the Democratic candidates would rejoin the Paris climate agreement. They would rejoin the Iran nuclear deal, possibly with new pre-conditions for lifting sanctions. All would reassure NATO allies of their full commitment to the alliance.

Most Dems agree with Trump’s more confrontational approach to China. However, they would ask America’s allies to work with us on the outcomes.

Biden has a long foreign policy track record. He proposed cutting Iraq into three states for the Sunni, Shia and Kurds. He wanted to arm the Ukrainians against Russia. He opposed the surge in Afghanistan, and the intervention in Libya.

The other candidates have said less, and have no distinctive foreign policy positions.

It would be great if we actually talked about foreign policy in the 2020 primaries. Let’s take a step back and remember 1991. After the fall of the Soviet Union, the world’s other nuclear-armed superpower, we became the sole superpower. Until then, our strategy had been to contain the Soviet Union, but afterwards, lacking a global competitor, neither Party put forth a coherent global strategy.

We blundered into the Middle East with the Gulf War in 1991. After 9/11, we attacked Afghanistan and Iraq. We then hatched the war on terror, and subsequently expanded our globalized military across the world. And when the ledger finally closes on our expenditures in Iraq and Afghanistan, the cost will approach $4 trillion.

Had we spent that amount on domestic priorities, we could have shored up Social Security and Medicare for a generation. We could have paid for the repair of our crumbling infrastructure. Instead, we’ve emerged from our Middle East blunder with two global competitors, China and Russia, along with a huge fiscal deficit. Neither had to happen.

America has failed to see the connections between our global strategy and domestic strategy. Providing incentives to our multinational corporations that enabled them to make goods abroad has marooned large swaths of our domestic workers.

A reasonable question to discuss is whether we can continue supporting globalization while building good jobs in the heartland of America.

And there should be a real debate regarding Trump’s foreign policy. He has sided more closely with Israel. He’s walked out of the Iran nuclear deal. He’s threatened Venezuela with possible “military options” that are being seriously discussed at the Pentagon.

Over the weekend, the Israelis told Bolton and Pompeo that the Iranians are preparing to attack the approximately 5000 US military personnel in Iraq. That may or may not be true, but it led to Pompeo visiting Baghdad.

Do American voters want another war in the Middle East? Trump is daring Iran to fully withdraw from the Nuclear Deal. Who will become the fall guy if there is an Iranian closing of the Straits of Hormuz? Trump, or Iran?

Trade talks with China seem stalled. North Korea’s recent missile tests press Trump’s bet on a deal with NK. Surely Kim is carefully watching Trump’s moves in the Middle East.

Then there is Russia. The Dems overreached with Russiagate, but the Russians are working with Syria to eliminate one of the last places in Syria (Idlib) where terrorists still hold sway. Neither Israel nor Bolton seem to want a stable Syria. Will they try to force Trump to obstruct this important operation?

Debate by Democrats may focus on military spending, with some wanting to cut it, and the mainstreamers being more cautious. A new policy towards the Middle East, and Israel in particular, should be discussed.

Regardless, Trump will surely attack Dems as “soft” on national defense.

But Democrats should thoughtfully challenge the Right-wing assumption that America must have a military-first strategy, rather than a diplomacy-first strategy.

We’re stretched thin trying to have a military presence everywhere in the world. It’s worth a real debate.

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US Army Woefully Unprepared

The Daily Escape:

Double Arch, Arches NP, Utah – photo by Bryol. The size of the people in the foreground give an indication of the mass of these formations.

Are you aware that the US Army is transitioning away from the counter-insurgency mindset that we have used for nearly 20 years in Iraq and Afghanistan? Or that we are now focusing on fighting large-scale, conventional battles against foes of equal strength?

Who are we talking about when we say “foes of equal strength”? It means countries with large land-based traditional armies. One new objective is to train Army personnel to fight underground. That doesn’t mean in the claustrophobic Vietnamese tunnels our GIs fought in during the 1970s, it means urban warfare in subways, large tunnel structures, and sewers. These days, most big cities all have utilities, water, electricity, sewer, and communications underground.

It also means fighting in subterranean facilities. Military.com estimates that there are about 10,000 large-scale underground military facilities around the world that are intended to serve as subterranean cities.

Some of these targets are in North Korea, where vast infiltration tunnel networks can move 30,000 NK soldiers an hour directly to the border with South Korea. China and Russia also have vast underground networks, so presumably, they might be targets as well.

In a way, this is old news. In addition to Vietnam, history reminds us that during the Battle of Stalingrad, the Russians used their sewer systems to spring surprise attacks behind the German lines. In Iraq, US troops conducted search missions in tunnels.

In late 2017, the Army launched an effort costing more than $500 million to train and equip most of its 31 active Brigade Combat Teams (BCTs) to fight in subterranean structures that exist beneath dense urban areas around the world.

There are big problems, though. The US Army hopes to meet its goals for urban warfare by 2022, but Military.com says most young sergeants don’t know how to maneuver their squads:

“For example, sergeants in the majority of the Army’s active brigade combat teams (BCTs) don’t know the importance of gaining a foothold when leading squads on room-clearing operations, according to a series of report cards from the service’s Asymmetric Warfare Group, known as the AWG.”

It gets worse. They can’t do basic land navigation: (emphasis by Wrongo)

“Additionally, the Army’s Non-commissioned Officer Academy is seeing sergeants routinely show up for courses unable to pass a basic land navigation course using a map and compass.”

And even worse. sergeants show up with:

“…poor physical fitness and body composition, and….not able to qualify as Marksman using backup iron sights.”

This means that many sergeants can’t shoot straight without either an optic lens, or laser pointer on their weapon!

This is surprising. Sergeants are the backbone of the Army. They are supposed to be the best-trained, best motivated members of their units. The basic unit in the Army is the squad, so when sergeant squad leaders can’t do basic land navigation, or shoot a gun without technology, we have a huge problem.

Remember that for the past 17.5 years in Afghanistan, we have been fighting an untrained enemy wearing flip-flops. Of course, they know how to shoot without optics. Maybe that’s why they won.

Wrongo was in the US Army in the late 1960s. At that time, a Corporal (E-4) or a Sgt. (E-5) had to know squad and fire team maneuvers, hand signals, placement of personnel in attack and defense, and fire direction (how to direct remote artillery or planes to a ground target).  All of that required map reading. So, Wrongo finds this disturbing, as should everyone else.

If using a map, protractor and compass is too difficult for today’s sergeants, then we need more/better training. Infantry soldiers must be proficient in these skills. Even though today’s soldiers rely on modern technology, those technologies sometimes fail, and sometimes tools like GPS aren’t available.

For example, we know that GPS won’t work reliably in a tunnel or sewer, so we need a continued emphasis on knowing how to use those non-technical solutions that worked back in the day. All Non-Commissioned Officers (NCOs) should be able to meet these basic infantry leadership requirements. All soldiers should be taught land navigation, regardless of whether they wind up in front-line combat units or support units.

We are being deluded by our military brass. We are no more ready to fight an urban war than we were ready to fight a counter-insurgency war in the Middle East. And why urban wars? What scenarios will get us into a fight in the big cities of Asia, or Europe? Or Russia?

Here’s a thought: How about the US doesn’t get involved in a foreign war where we have to “occupy” a city?

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Monday Wake Up Call – February 11, 2019

The Daily Escape:

The Piedmont Kilns, Wyoming. They were built in 1869 to supply charcoal for the iron smelting industry in Utah. Part of a ghost town, three remain.

A wave of bankruptcies is sweeping the US Farm Belt, and Trump’s trade disputes are adding to the pain. The primary cause is low commodity prices that American farmers have experienced for the past few years. Throughout much of the Midwest, US farmers are filing for Chapter 12 bankruptcy protection at levels not seen for at least a decade.

From the WSJ:

“Bankruptcies in three regions covering major farm states last year rose to the highest level in at least 10 years. The Seventh Circuit Court of Appeals, which includes Illinois, Indiana and Wisconsin, had double the bankruptcies in 2018 compared with 2008. In the Eighth Circuit, which includes states from North Dakota to Arkansas, bankruptcies swelled 96%. The 10th Circuit, which covers Kansas and other states, last year had 59% more bankruptcies than a decade earlier.”

Those states accounted for nearly half of all sales of US farm products in 2017, according to USDA data. Since 2000, China’s share of our agricultural exports has increased from two percent to about 19% in 2017. China has become our largest agricultural trading partner.

The rise in farm bankruptcies tracks a multi-year slump in prices for corn, soybeans and other farm commodities caused by a world-wide glut. Prices for soybeans and hogs further declined after Mexico, along with China, retaliated against US steel and aluminum tariffs by imposing duties on our AG products, and then slashing purchases.

Farmers generally supported Trump’s tariffs when he started the trade war in 2018. China’s retaliation was to virtually cease purchasing American agricultural products. As an example, China moved the sourcing of soybeans from the US to Brazil. When a low margin business like farming loses 20% of sales, only those who aren’t in debt can survive. And most US farmers owe quite a bit to their bankers.

The Trump administration recognized the potential problem, and approved funding to bridge farmers across the decline in Chinese purchases, but the trade war has gone on for longer than anticipated.

Now, bankruptcies are way up, and exports to China are way down:

Source: Econbrowser

Unfortunately, we keep importing from China. But in the past year, the Chinese have stopping buying as much of our goods. Clearly, the bull our farmers got isn’t in their barn, but in the White House.

Republicans are saying that the surge in farm bankruptcies isn’t Trump’s fault, that the problem with the farm product glut started years ago. But, if Republicans want to give Trump credit for the good employment numbers, and a still-robust stock market, they have to blame him for the bad as well.

Time to wake up America! Disruption without a strategy brings chaos. And think back to the SOTU, when Trump said how he stood between us and socialism. But Trump’s picking winners and losers with his trade wars. He’s using tax-payer money to subsidize farmers damaged by his self-imposed trade wars. That sounds eerily like socialism to Wrongo.

Wake up to the fact that farmers are pawns in Trump’s capricious tantrums against China. Those who have played chess know that most of your pawns are gone by the end of the game.

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