Tag: Zbigniew Brezinski

Russia. China And Iran, And Other Thoughts

The Daily Escape:

Snow at sunrise, Grand Canyon NP, AZ – February 2024 photo by John Fecteau

Welcome to another Monday Wake Up. Wrongo wants to touch on a few different ideas today. First, a non-trivial topic that Wrongo plans to return to this year. When we look at the geo-political landscape today, the US is confronting a growing alliance between three countries, each of which holds ill-will towards us and towards our western allies. Those three are China, Russia and Iran.

We’re confronting them separately and also in the case of the Ukraine War, jointly. This is an excellent time to harken back to something that Zbigniew Brzezinski wrote in 1997. He had formerly (through 1981) been Carter’s National Security Adviser:

“Potentially the most dangerous scenario would be a grand coalition of China, Russia and perhaps Iran, an ‘anti-hegemonic’ coalition, united not by ideology but by complementary grievances. . . . Averting this contingency . . . will require a display of US geostrategic skill on the western, eastern and southern perimeters of Eurasia simultaneously.”

Today’s geopolitical landscape reflects exactly what Brzezinski feared more than two decades ago. Is the world heading toward what the late Brzezinski referred to as “the most dangerous scenario”? What should America be doing now to head off what we’re seeing from our three rivals? Or is it already too late?

Which presidential candidate will do the better job of blunting this potential power conflict ?

Second, what did the weekend’s South Carolina Republican primary tell us? Trump won by a wide margin. As of this writing, the tally has Trump at 59.8% and Nikki Haley at 39.5%. The media is treating this as a significant triumph. When you win by 20 points, that’s true.

The real story, however, is that Trump underperformed expectations and failed to expand his coalition beyond his base. If you doubt that, take a look at the polling group 538’s polling vs. actual results for Trump across the three Republican primaries:

We’re seeing Trump consistently underperform the polls by 7-8 points. Worse for Trump, Fox News’ John Roberts talked about an alarming exit poll finding that 59% of Haley voters in South Carolina last night (equal to 40% of the electorate) would not vote for Trump in the general election.

From Simon Rosenberg:

“It’s my view that something broke inside the GOP when Dobbs happened. That even for many Republicans, it was just too much, the party had gone too far, had become too ugly and dangerous.”

Trump and the GOP are showing signs of deep institutional weakness. They had disappointing elections in 2018, 2020, 2022 and 2023. They’re replacing the entire leadership team at the RNC due to their ongoing fundraising struggles. Today’s RNC is broke:

In addition, the GOP’s state parties have atrophied in some key battleground states. Trump is burning through cash at unprecedented rates to fund his many lawsuits. Even Nikki Haley out raised him last month.

Wrongo thinks that we’re finally seeing “Trump Fatigue”. Everybody has seen his act and has zero need to ever see it again. The assertion that Trump is strong beyond his die-hard MAGA base seems to at last, be untrue. But what does Wrongo know? When he retired from the F500, he thought he would go into private equity. But he was seduced into online journalism by the promise of very small paychecks and zero job security.

Our third story is for the birds. The Guardian reports that:

“The Eurasian eagle owl named Flaco, which escaped New York City’s Central Park Zoo last year, has died after crashing into a building in Manhattan, officials said late on Friday.”

Here’s Flaco in happier times:

More:

“Flaco was rescued by the zoo in 2010, when he was less than a year old. He was reputed to be the only owl of his kind in the wild in North America, and there were widespread fears he ultimately wouldn’t survive for long outside captivity.”

The Eurasian eagle-owl is one of the larger owl species. Flaco’s wingspan was reported to be about 6 ft. Ornithologist Stephen Ambrose wrote on LinkedIn that there was evidence light glare from city buildings’ windows could blind owls momentarily and increase their risk of crashing into the structures, especially at night.

This raises the evergreen question of how to keep birds safe in US urban areas. Federal officials estimate that one billion birds in the US die annually after accidentally flying into building windows. Wrongo and Ms. Right had this happen to us years ago when a hawk crashed through our lakefront cottage living room’s wall of glass. He was dead when he hit the floor. It doesn’t only happen in high-rise buildings.

Time to wake up, America! There’s glare everywhere, including in the media’s silly discussion about how overwhelming Trump’s electoral chances are vs. Biden. Trump has a very small chance of being elected in 2024. To help you wake up, watch this great video of England’s Prince William singing “Livin’ on a Prayer” with Jon Bon Jovi and Taylor Swift at the Winter Whites Gala charity ball at Kensington Palace. This is fun and worth your time:

The future King of England singing with the current Queen of Americana.

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Steel Tariffs Against China Make Sense

The Daily Escape:

Winter Morning, Moscow Oblast, Russia – 2018 photo by kostya8. Good luck to those in New England today!

“Shortly, the public will be unable to reason or think for themselves. They’ll only be able to parrot the information they’ve been given on the previous night’s news” – Zbigniew Brzezinski

Did Wrongo ever tell you about meeting Zbig? We had lunch together in the officer’s dining room at the big NY bank that Wrongo was with, sometime in the early 1980’s. It must have been a real comedown for him, lunching with an international department strategic planner, after serving four presidents. We focused on the (then) current state of the Asian economies, but his eyes scanned the room, looking (maybe hoping) for a better deal than simply talking to a young vice president.

Zbig’s quote is on the money. It is America today: We don’t figure things out, because everyone is an expert. Today, anyone you meet already knows everything. They’ve taken a quick look at Wikipedia, and they know that their opinions are worth as much as any expert.

If average people can be experts, why is Trump’s effort to do a better deal on trade so off the mark?

His proposed steel and aluminum tariffs are levied against all producers. The table below from a 2016 Duke University study, shows production by country. You can see the extent to which China is an outlier:

Note that the US is fourth on the list. Take a look at where Canada ranks. It’s hard to see Canada as a strategic risk to US military needs, but since Trump plans to deploy a blanket steel tariff, everyone suffers, at least until the retaliation begins. The Duke study makes the point:

The global steel sector is once again in a state of overcapacity. The sector, predominantly fueled by China’s expansion since 2000, has grown to over 2,300 million metric tons (MT) while only needing 1,500 MT to meet global demand. The result is a global steel sector at unviable profit levels and an influx of cheap steel in the global trading system adversely affecting companies, workers, and the global trading regime.

Both George W. Bush and Barack Obama applied steel tariffs. Bush imposed broad tariffs of up to 30% on steel imports in 2002. His tariff was supposed to last three years, but was withdrawn after the World Trade Organization (WTO) ruled against them. In 2016, the Obama administration imposed duties on some Chinese steel imports by more than 500%, on Chinese cold-rolled steel, which is used to make appliances, cars and electric motors. Subsequently, Chinese imports to the US dropped by almost two-thirds. China now ranks as the 11th largest exporter of steel to the US.

WaPo notes that Chinese steel accounts for about 6% of US steel imports, but China’s capacity is eight times that of the next biggest producer, Japan. Clearly, its Chinese capacity that must be addressed.

On Tuesday, the European Commission announced it had renewed tariffs on Chinese steel imports, some as high as 71.9%, saying producers in France, Spain and Sweden face a continued risk of imports from China at unfairly low prices. The Commission concluded that Chinese producers had significant spare capacity. This was likely to lead to large-scale imports into the European Union at dumped prices if the measures were lifted.

And even though China’s share of the EU market for stainless steel seamless pipes and tubes has hovered around 2% since 2013, Brussels had no problem with pursuing what it thought was a fair remedy, despite the possibility of blowback.

Ironically, that’s similar to what Trump says he wants to do. Similar, but far from the same.

Trump’s plan hits all global steel producers, not just China, which, as the chart above shows, produces 52% of the world’s supply. So instead of confronting only China, we will face blowback from everyone.

OTOH, the politics of Trump’s tariffs may play out differently than the economics. The economics suggest they are a loser. According to a January Bureau of Labor Statistics report, about 377,000 Americans work in metal manufacturing jobs that could be protected by these tariffs.

That’s a lot of votes in the Rust Belt. And the steel company CEO’s will also see bigger bonuses.

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