Never fear. I’ve got a whole lot of post ideas in the chute, which will be forthcoming in the days ahead. But for now, I want to draw attention to an interesting dynamic in the Persian Gulf region. The rich Arab oil states – the UAE, Iraq, and now Saudi Arabia – are buying huge American arms packages. What the media has failed to cover is that the sales are at what are almost certainly massively overinflated prices.

Under the threat of Iranian missile attacks in the event of war, the UAE “concluded a $3.3bn Patriot missiles arms deal with the US” in December 2008 and is now looking for a $9bn deal for more air defense and Black Hawk helicopters. As a major oil export hub, this is much in its interests.

Then, coinciding with the US withdrawal of most troops from Iraq, the country concluded a $13bn deal to purchase American arms and military equipment, including “18 F-16 Falcon fighter jets as part of a $3 billion program that also includes aircraft training and maintenance”. Two years ago, Romania bought 48 F-16s for $4.5bn (half new, half used and modernized). That comes out at $95mn for each plane, whose current unit cost is now about $45mn. Iraq is now buying 18 F-16′s for $3bn, or $170mn for each. Anyone care to guess what percentage of that are kickbacks to Iraqi officials?

But if you think that’s impressive price gouging, take a look at the recent $60bn deal with Saudi Arabia. A modernized F-15 for the USAF costs about $60mn, including spares & support. About double that for export customers. So 84 F-15′s are $10.1bn. 70 upgrades to existing Saudi F-15′s. Let’s be generous and say it costs $80mn per plane, or 2/3 the cost of a new one. That’s $5.6bn. The unit cost of a Black Hawk helicopter is $14mn and of an Apache is $15.4mn. Let’s assume it’s around $30mn for export customers. In that case, 72 Black Hawks and 70 Apaches cost 4.3bn. All together, that’s around $20bn.

Of the $60bn deal, half of that will go just for the 84 F-15′s. That’s a cool $360mn for each one. That’s more than twice the unit cost of the fifth-generation F-22 Raptor! More even than its prospective export cost, which is about $250mn!

(Furthermore, note that the F-15′s are “monkey model” exports: due to Israeli concerns, “advanced sensors on the new Saudi F-15s will have technology built in to prevent them being used against their Israeli equivalents.”)

So in effect, the Saudis are paying $60bn for a package whose stand export price should be about $20bn. Massive profits to the US MIC (which will help it remain in the black despite Gates’ planned procurement cuts for budget reasons). Brilliant!

It’s not as if both Iraq or Saudi Arabia couldn’t have gotten better deals by shopping around elsewhere. A quick Internet search would show that there are plenty of fourth-generation planes available for well under $100mn per unit. For instance, since 2005, Venezuela has bought 24 Sukhoi-30MK’s, modernized 4.5+ generation fighters, for $1.6bn, after the US refused to supply F-16 spares to Chavez. (The whole $4bn package also included 50+ helicopters and missile defense systems). And I very much doubt that the US reputation for good after-sales maintenance can explain this big of a chasm.

So there must be ulterior forces at work, though as in the case of Iceland’s mercenary army, I can’t say which. Simple corruption on the part of Iraqi and Saudi officials? The influence of an occupying power? (The US, with its heavy military and intelligence presence in the Middle East, can easily pressure its client states, and what better way than to get their oil rich members to subsidize its MIC?). Rational calculation of national interests, i.e. maintaining good relations with the US? Discuss.

2. Putin made a conciliatory speech on the 70th anniversary of the Katyn massacre, much more so than the one a year ago. It was balanced and considered, condemning the crimes of totalitarianism, while avoiding any acknowledgement of modern Russia’s responsibility.

In a bitter irony for the Poles, three days later the firebrand Polish President Lech Kaczynski’s plane tumbled out of the sky while flying (uninvited) to attend a separate commemoration. Among the dead were assorted members of the Polish military, clergy, politicians, and Katyn victims’ families (see list).

First, putting all your eggs in one basket is pretty stupid. High-ranking politicians and generals are important national assets. They shouldn’t all be packed into one plane just to save a little money. In banana republics – which fortunately for Poland it is not – such accidents can cause state breakdown and revolution.

Second, the insistence on continuing to land in Smolensk against the advice of ground control is key to understanding the tragedy. Lech Kaczynski has a history of interference with pilots’ decisions. During the South Ossetian War, he threatened to fire the pilot for countermanding his orders to land in a war zone and instead continuing on to Azerbaijan. Though the threat wasn’t carried out, the pilot is known to have suffered from depression afterwards. The same pilot was flying the aircraft in this case. It will not be surprising if some similar, irresponsible stubbornness typical of Kaczynski was at play here. Or perhaps the pilot just really, really didn’t want to “fail” Kaczynski again.

Few people explicitly blamed Putin, the FSB, or even NKVD trees planters from the 1940′s for the crash. The exceptions were ultra-nationalist Artur Gorski (he who also tried to make Jesus Christ proclaimed King of Poland) and the ever reliable Russian liberast Novodvorskaya. There is absolutely nothing indicating a conspiracy, which in any case is highly unlikely given that this would have produced great risks for very limited payoffs.

Russia has been using the crash as an opportunity to mount a charm offensive towards Poland: Putin hugging Polish PM Donald Tusk; shows of solidarity towards Poland from Russia’s leaders and citizens; the prime-time airing of the Polish movie “Katyn”. I am almost certain that most of it is simulated, at least amongst the Russian leadership. Would America’s elites shed any real tears if Chavez, or Putin for that matter, fell out of the sky while flying to the United States? No, I don’t think so. But it seems to be working.

The fortuitous (for Russia) death of Kaczynski kills two birds with one stones. One of the most prominent and respected Polish proponents of the anti-Russian agenda is elimated, while relations with Poland can be improved so as to ease its concerns over Russia’s westwards-creeping sphere of influence.

3. In recent months, there has been talk of Poland’s reserves of shale gas, which – or so some commentators have suggested – will wean off east-central Europe from its dependency on Russian gas. US giants announced exploratory drilling will begin in Poland within the next few weeks. One oil and gas research group estimates there could be as much as 1.4tn cubic meters of unconventional gas in tight rock formations across northern and central Poland, which have recently become accessible thanks to American developments in hydraulic fracturing technology. These reserves would boost the EU proven reserves of natural gas, now at 2.8tn cubic meters, by 50%. Furthermore, Poland itself – whose own gas consumption is pretty low at 14bn cubic meters of gas (72% imported) – will become self-sufficient for decades. Poland is clearly very enthused about this, offering foreign companies excellent tax incentives for developing the shale gas.

Will this actually produce the desired results? First, the high costs mean that only 28% of gas-producing wells have generated decent profits, making investment risky. Second, they have amazingly huge decline rates – e.g., around 60% per year for the Barnett shale fields in Texas (and up to 80-90% in the Haynesville wells). This makes ramping up production quickly difficult since you have to run so hard just to keep still. Third, the projections indicate European gas production (now c. 200bn cubic meters) will decline while demand (now c. 520bn cubic meters) will increase. Poland’s 1.4tn cubic meters of shale gas reserves are insignificant relative to Russia’s 43tn cubic meters of conventional gas reserves, for which the infrastructure is already built. Finally, it is not even at all clear that Poland switching from coal to shale gas will even be that environmentally-friendly.

Now if there is the political will in Poland, it will probably be able to build up a shale gas infrastructure and ensure itself – and even its Visegrad and Baltic neighbors – energy independence for a few decades, starting from around 2020. (That period may also coincide with Nabucco coming onstream by 2015, if it gets the go ahead this year). The geopolitical configuration of Europe will change. Poland will become a far more significant pole in the European power balance than it is today, while Germany – and Britain further downstream – will become even more dependent on Russian gas, delivered by the Nord Stream pipeline bypassing Poland and the Baltics.

4. The Eyjafjallajökull volcano in Iceland erupts, covering northern Europe with a haze of ash and disrupting transatlantic flights.

There are three things to be said about this. First, people in Britain have been reporting that the sky was unusually clear, with nary a cloud in sight, and that there was a spike in temperatures, with people even sunbathing. This was to be expected following the grounding of air fleets in the affected regions, since aircraft contrails, or vapor trails, are a major source of global dimming. This effect limits the amount of solar radiation hitting the surface of the Earth, and has caused the real extent of global warming to have been underestimated. (Or put another way, if all the world’s air fleets were to vanish today, temperatures would immediately spike by about 1C).

Second, the Eyjafjallajökull volcano could trigger off the much bigger Katla volcano. Katla has seen a significantly increased incidence of tremors in the past day. In the worst scenario, albeit a pretty unlikely one, the skies over Europe could remain ashen for up to two or three years – wrecking havoc on transatlantic transport and nudging already-strained airlines into bankruptcy. However, there shouldn’t be any major cooling effect, since even the larger Katla eruptions have historically been an order of magnitude less intense than that of Mount Pinatubo in 1991. (Unless the really big one blows off, that is Laki, whose eruption in 1783 caused dearth throughout Europe). That said, the global warming-induced melting of the Icelandic glaciers could make its volcano eruptions both bigger and more frequent in the decades to come.

Finally, see this Oil Drum post about The Possible Impact of the Icelandic Volcanoes on Energy Production. In short, major Icelandic eruptions could cause energy problems due to 1) a decrease in biofuel crop yields and 2) wind turbines having to be shut down so that their turbines don’t get damaged by air particles from the eruption.

5. With the British elections on May 6th 2010 fast approaching, the key debates center around the economy. During the recession, Britain experienced a peak-to-trough fall in GDP of 6.2% and its budget deficit this year will account for 12-13% of GDP. Foreigners are beginning to look at Britain as the new “sick man of Europe”. Below are three articles which, roughly speaking, offer an “optimistic”, a “realistic”, and a “pessimistic”, respectively, view on the British economy.

A) The pain to come: A terrible recession will be followed by a lacklustre recovery, but Britain is no basket-case (Economist). ”The economy may have been lopsided before the recession, but on nothing like the scale of southern Europe. In 2007 Spain’s current-account deficit ran at 10% of GDP; Greece ran one of 14.4%. By comparison, Britain’s 2.7% was a mere bagatelle. The fall in the pound has allowed the economy to regain competitiveness in a way not open to the weaker members of the euro area. As for the resemblances with the 1970s, history is not repeating itself. Inflation has recently flared up, but at 3% in February it is tame; the post-war high, reached in 1975, was 27%… But [Britain's debt figure] is inflated by London’s role as a global financial hub where foreign banks cluster to do international business. Adjusting for this, McKinsey reckoned that debt amounted to 380% of GDP in 2008. Although this was the second-highest after Japan (459%), four other countries – Spain, South Korea, Switzerland and France – had debt above 300%… Britain’s economy was overhyped before the recession, but the gloom has been overdone since the great fall.”

B) A Prayer from the Death Bed: Great Britain Stars in Its Own Greek Tragedy (Spiegel). “The country that was once referred to as “Cool Britannia” is in a serious crisis, with a hole in its budget even bigger than Greece’s budget deficit, now at 12.2 percent. And nobody knows how to fix the problem. Indeed, the problem has become so worrisome, that the European Commission told London on Wednesday to do more to tighten its budget, … “The fiscal strategy outlined in the United Kingdom’s convergence program does not foresee the correction of the excessive deficit by the fiscal year 2014/2015, as recommended by the Council,” the European Commission said in a statement… The accountants at PricewaterhouseCoopers have calculated that starting next year, Britain would have to make across-the-board budget cuts of 5 percent a year to come close to cutting the deficit in half by 2014. But because the Brown government has already declared the budgets for health, law enforcement and schools to be off-limits, cuts of up to 10 percent – per year – are to be expected in most areas… And things could even turn out to be much worse if there is no strong economic upturn during this period. … There will also be massive cuts in low-income housing construction and transportation, translating into even more dilapidated housing, more potholes on Britain’s already miserable roads, and new cutbacks in high-speed train service. Universities have already lost close to £1 billion in funding, and various think thanks predict that the defense budget could shrink by about 15 percent between now and 2015.”

C) Election 2010: Debt – A conspiracy of silence (The Independent). ”In 1975 the UK had government interest-bearing debt of about 45 per cent of the total economy (GDP) and the debt was rising at about 8 per cent per year. We then had to crawl to the IMF in 1976.Today, that interest-bearing debt is about 65 per cent of GDP, rising nearly 13 per cent a year. A degree in economics will not be necessary to spot that things are a lot worse than in 1975… The mid-1970s IMF crisis was triggered largely by the fact that foreign buyers of government debt were so nervous of the UK’s ability to repay debt that interest rates roared into the teens. Inflation was a much bigger issue then than now, and foreigners and Brits alike also feared we intended to “repay” our debt with relatively worthless scraps of paper. So there was a buyers’ strike on government debt and we had to be bailed out. Rationally, the currency collapsed in value, and as the cost of importing oil and the like rose, so did inflation. … So how can we get out of this financial hole before our creditors get to us? There are three ways to reduce our national debt: let inflation rip to destroy the debt; increased tax revenues from higher taxes and economic growth; cut government spending. … The political debate talks of a few hundred million here and there – it needs to be about tens and scores of billions. Neither party has plans to deploy actions for the economy remotely commensurate with the size of the problem.”

I lean towards the “realistic” / “pessimistic” sides of the debate. The Government’s rosy projections of 2.5%+ growth are unlikely to materialize. Consumption is going to be kept down by consumer indebtedness, the upcoming hikes in interest rates, and increases in tax rates. There’s little room for export growth, considering the deindustrialization of the British economy. Finally, there itsenergy problems. The North Sea oil and gas fields are fast depleting and Britain’s reliance on gas supplies is increasing. Having failed to make any long-term arrangements with suppliers like Gazprom on the cheap, it will be forced to bid at spot prices on the LNG market to a greater extent than the European nations. Finally, the emerging trends towards the unraveling of liberal globalization cannot bode well for a nation that derived so much of its prosperity from open markets and international financial, legal, and consulting services.

Now what about the elections? Below is a graph of party approval ratings. Of late, the Conservatives, New Labor, and the Liberal Democrats have been running neck and neck.

[Opinion polls on British election: Conservatives, New Labor, Liberal Democrats].

My suspicions are that if the Tories win, there will be attempts at a strong fiscal rentrenchment. The shrinking of the public sector will hurt living standards, but lay the foundations for eventual stabilization. On the other hand, New Labor or the Liberal Democrats will be unwilling, or unable, to follow through will this, and the eventual result would be one default or another accompanied by a sharp drop in living standards. Another possibility is a “hung parliament”, should the three parties all win roughly equal shares of the vote (as seems to be a strong likelihood today). Such a paralysis would delay any actions to address Britain’s imbalances.

6. Demography watch.

• U.S. Birth Rate Decline Linked to Recession – small fall in US birth rates in 2009.
• On migration and population in reunification-era Korea (Randy McDonald) and discussion.
• Russia’s demography Jan-Feb 2010: relative to same period last year, births fall 0.8%, deaths fall 2.0%. Not too surprising since Russia’s recession troughed some nine months back.
• Comparative demography in the CIS states (Demoscope).
• Таджикские трудовые мигранты во время кризиса (Demoscope).

7. Energy & climate blast – lots of important reads these last two weeks.

• Online World3 simulator @ http://live.simgua.com/World.
• Confidential document reveals Obama’s hardline US climate talk strategy.
• The dark side of coal – some historical insights on energy and the economy (Ugo Bardi). 1) In a world devoid of coal or other high-EROEI energy sources, life is hard and dependent on muscle power. 2) It is justifiable, and if so to what extent, to cite the economic ramifications of “peak coal” as a contribution factor to the European crisis of 1914-45 (since oil only began to expand in a big way from the 1950′s).
• Avoiding Collapse (Global Guerrillas)
• Easter Island : A Case Study in the Response to Resource Depletion.
• Hottest Jan-Feb-March on record in 2010. Could the deniers and fudgers STFU already? More.
• The Future of Capitalism – Profits and Growth (George Mobus).
• Peak asphalt: the return of gravel roads (Ugo Bardi).
• Social Security and Medicare Funding Issues: Even Worse when One Considers Resource Constraints (Gail Tverberg).
• Increasing Global Nonrenewable Natural Resource Scarcity—An Analysis (Chris Clugston) – important reference.
• Tipping towards the unknown – “Researchers propose critical planetary boundaries, transgressing them could be catastrophic. But there is hope.”
• You think only leftist losers go on about peak oil? US military warns oil output may dip causing massive shortages by 2015.
• Dancing with the devil known as geohacking & Birth control vs. geohacking (Lou Grinzo).
• The Twilight of the Machine & A Blindness to Systems (John Michael Greer).
• An Introduction to Global Warming Impacts – a summary from Climate Progress. For another key post on Limits, see World Oil Production Forecast – Update November 2009 from Oil Drum.
• A Superstorm for Global Warming Research, an 8-part skeptic series by Spiegel. Criticized here at Real Climate.

8. Eurasia watch.

• The Failure of the Anti-Russian “Freedom Agenda” (Daniel Larison).
• Yanukovych removes Ukraine’s application to join NATO, a move that is supported by the majority of the Ukrainian population.
• Russia’s industrial production in Q1 2010 continues a slow recovery. More encouragingly, after the sudden collapse in late 2008-early 2009, Russian consumer expectations are rapidly approaching their old boomtime highs. Merrill Lynch is particularly optimistic – Russian Economy May Get ‘Biggest Bounce’ in World, making the highest yet prediction of 7% growth  for 2010 (most analysts suggest 4-6%).
• Randy McDonald writes about Soviet computers.
• A detailed study from Russia’s VTsIOM polling agency on the Internet in Russia. Summary: 81% of Russians have cell phones; 46% have computers; 38% are Internet users (23% use it daily).
• Russia Weekly Sitrep (Patrick Armstrong).
• The Sirens of Russia. Post by A Good Treaty about Russia’smigalka culture of impunity – and how it is perhaps slowly beginning to retreat under public pressure and the influence of social media.
• Russian attitudes towards Katyn (Levada). Some 50% of Russians view Poland positively, 26% negatively (AK: these figures are likely the reverse in Poland). Only 43% of Russians have heard about Katyn. Asked who was responsible for it, 19% said the USSR, 28% Nazi Germany, and 53% didn’t know. Around 15% think it was “genocide”, 38% a “crime”, 14% consider it justified under wartime conditions, and 33% didn’t answer. Only 18% think Putin should apologize for Katyn in Russia’s name, while 46% disagree. Of the latter, 47% think he shouldn’t apologize because Nazi Germany was responsible; 34% – because today’s Russia shouldn’t answer for the USSR; and 8%, because it would weaken Russia’s position in relation to Poland.
• Russia: Other Points of View analyzes Stratfor’s coverage of Russia and The Dangers of Meddling in Russia’s North Caucasus.
• The new Journal of Eurasian Studies (h/t Sean) from South Korea. I checked out the first article in its first issue: Eurasian polities as hybrid regimes: The case of Putin’s Russia, which is basically accurate: “It is argued that Russian political development under Putin is best understood not as “authoritarianization” but as a process in which Russia transitioned from a system of “competing pyramids” of machine power to a “single-pyramid” system, a system dominated by one large political machine. It turns out that in single-pyramid systems that preserve contested elections, as does Russia, public opinion matters more than in typical authoritarian regimes.”

9. Mexico and the Failed State Revisited (free Stratfor) has the counter-intuitive take that far from challenging the state, the drug cartels are actually benefiting the Mexican economy because the immense profits reaped from selling drugs to the affluent US can be reinvested into Mexico.

…It is not clear to STRATFOR that Mexico is becoming a failed state. Instead, it appears the Mexican state has accommodated itself to the situation. Rather than failing, it has developed strategies designed both to ride out the storm and to maximize the benefits of that storm for Mexico. First, while the Mexican government has lost control over matters having to do with drugs and with the borderlands of the United States, Mexico City’s control over other regions — and over areas other than drug enforcement — has not collapsed (though its lack of control over drugs could well extend to other areas eventually). Second, while drugs reshape Mexican institutions dramatically, they also, paradoxically, stabilize Mexico. …

On the whole, Mexico is a tremendous beneficiary of the drug trade. Even if some of the profits are invested overseas, the pool of remaining money flowing into Mexico creates tremendous liquidity in the Mexican economy at a time of global recession. It is difficult to trace where the drug money is going, which follows from its illegality. Certainly, drug dealers would want their money in a jurisdiction where it could not be easily seized even if tracked. U.S. asset seizure laws for drug trafficking make the United States an unlikely haven. Though money clearly flows out of Mexico, the ability of the smugglers to influence the behavior of the Mexican government by investing some of it makes Mexico a likely destination for a substantial portion of such funds.

Of course, there’s also the problem that Mexico’s oil production is plummeting as the supergiant Canterell depletes. (the state oil company is blamed for managerial fecklessness, but geological reasons are more important). An interesting scenario: if Mexico becomes a net oil importer and the US relaxes its drug policies, could it experience a liquidity crisis?

10. Ahmed Karzai and the US have fallen into a blame game of necessity. Karzai criticizes the West for electoral fraud and legitimizing the insurgency. Since NATO troops are, one way or another, going to leave Afghanistan in a few years, Karzai needs to build a base of support amongst his own people and his neighbors (Iran, China) if he wants to survive. The US in turn blames Karzai’s corruption for the sabotage of the war effort, because the alternative would be an indictment of the entire American war strategy. As of now, Karzai may be rightly feeling like Ngo Dinh Diem in South Vietnam, – the US no longer regards him as a reliable asset and he is at risk of being overthrown in favor of someone more manageable.

11. From Stratfor. There is relative optimism in Iraq and the US about the security situation as American troops continue a steady withdrawal. However, there remain questions about the governing capability of the new government and the ability of the security forces to maintain stability. Iran retains the potential to inflame ethno-sectarian strife, albeit thus far it prefers to (successfully) exercise its influence through “softer” means. The main problem is that by invading Iraq, the US has destroyed the old Iran-Iraq balance of power – and the forthcoming withdrawal of US forces will actually give Iran much better opportunities for extending their sphere of influence over Mesopotamia.

According to another source, Iraq will take 5-10 years to (re)build a military capable of defending the country against Iran or Syria. “The Iraqi plan is to stock up on superior American weapons, and train Iraqis to use that stuff with effectiveness approaching that of the Americans. That takes money, and time. Iraq is buying second-hand F-16s, but it will take three or four years to get the pilots and ground crews up to an acceptable level of performance. Along with this, the Iraqis want to buy modern anti-aircraft missile systems, and get them into service.” Also recall that it will take about a decade to ramp up Iraqi oil production, if the effort is successful.

Conclusion? The US is withdrawing from Iraq, bogged down Afghanistan, and in uncertain fiscal straits. Iraq has the potential to stand on its own feet, but will need a few years of stability. Thus, Iran will now enjoy a “window of opportunity” of around 5 years to make a play for hegemony in the Persian Gulf.

12. Palestinians Try a Less Violent Path to Resistance.

RAMALLAH, West Bank — Senior Palestinian leaders — men who once commanded militias — are joining unarmed protest marches against Israeli policies and are being arrested. Goods produced in Israeli settlements have been burned in public demonstrations. The Palestinian prime minister has entered West Bank areas officially off limits to his authority, to plant trees and declare the land part of a future state.

Something is stirring in the West Bank. With both diplomacy and armed struggle out of favor for having failed to end the Israeli occupation, the Fatah-dominated Palestinian Authority, joined by the business community, is trying to forge a third way: to rouse popular passions while avoiding violence. The idea, as Fatah struggles to revitalize its leadership, is to build a virtual state and body politic through acts of popular resistance. …

Nonviolence has never caught on here, and Israel’s military says the new approach is hardly nonviolent. But the current set of campaigns is trying to incorporate peaceful pressure in limited ways. Rajmohan Gandhi, grandson of the Indian independence leader Mahatma Gandhi, just visited Bilin, a Palestinian village with a weekly protest march. Next week, Martin Luther King III is scheduled to speak here at a conference on nonviolence.

Reminds me a bit of this scene from A Sum of All Fears.

13. Peter Lavelle interviews Middle East journalist Robert Fisk back in September 2009. If you want a ten minute video summary of why the West fails in Dar al-Islam – this is it.

14. United States watch.

• Obama Limits When U.S. Would Use Nuclear Arms to states that have nuclear weapons or haven’t renounced or violence the Non-Proliferation Treaty. It is rational and profitable for US interests.
• US gunships attack Iraqi civilians in Wikileaks scandal (see video). This is a non-story – mistakes do occasionally happen (if you really want to get all moral and uptight about this, the relevant question is why the US is in Iraq in the first place). Some might complain the soldiers were cold-hearted by laughing and making morbid jokes, but humor is a typical defense mechanism to scenes of carnage.
• Obama administration ‘looks backwards’ to punish heroes. As I’ve said before, most of the Obama administration’s “change” is more cosmetic than real. It is a continuation of Bush post-2006.
• The march to American Caesarism continues. When did it become legal to assassinate Americans? “Anwar al-Awlaqi, the New Mexico-born cleric living in Yemen, has been placed on a target list that makes him fair game for assassination by the U.S. military or CIA”. The problem isn’t so much the authorization of assassination, which is a useful anti-terrorist tool, but the fact that this further widens the gap between US liberal/rule-of-law pretensions and reality, and hence undermines its international legitimacy. After all, Israel or Russia, states that are not averse to assassinations on foreign soil, don’t portray themseves as guarantors of liberal internationalism. America does.

15. The consevative reaction in Europe spreads to Hungary, with the election of the Fidesz Party to power. By itself this is a normal development unworthy of much comment, except for the fact that the democratic left (the Socialists) have now been marginalized, and now enjoy about the same level of support as the far-right Jobbik and his Movement for a Better Hungary. This party is truly extremist – it has a “Magyar Garda” militia, its symbology draws on the banned Nazi-era Arrow Cross Party, and its rhetoric attacks the Jews above and the Roma below.

Hungary is going to face lean economic times in the years ahead and Viktor Orban of Fidesz can be expected to come under attack by a Jobbik energized by supporters dissilusioned of conventional politics. As Walter Mayr of Spiegel writes in “The Monster at Our Door”: Hungary Prepares for Shift in Power, the end result could be that Orban deserts austerity politics for the seemingly greener pastures of identity politics – for instance, it is known he is in favor of double citizenship for ethnic Hungarians outside Hungary, which could lead to clashes with Romania and Slovakia. (Though it should be stressed this is hardly unusual for Eastern Europe – for instance, Russia’s conferral of dual citizenship was one of the factors provoking conflict with Georgia over S. Ossetia and Abkhazia, and the Romanians themselves are at odds with Russia and Ukraine thanks to their issue of Romanian citizenship to Moldovans).

16. The Caucasus Emirate (Scott Stewart & Ben West), free Stratfor article about what is now the foremost jihadi group operating against Russia in the North Caucasus.

Umarov’s founding statement for the Caucasus Emirate, in which he called for the region to recognize the emirate as the rightful regional power and adopt Shariah, marked a shift from the motives of many previous militant leaders and groups, which were more nationalistic than jihadist. This trend of regional militants becoming more jihadist in their outlook increases the likelihood that they will forge substantial links with transnational jihadists such as al Qaeda — indeed, our Russian sources report that there are connections between the group and high-profile jihadists like Ilyas Kashmiri.

However, this alignment with transnational jihadists comes with a price. It could serve to distance the Caucasus Emirate from the general population, which practices a more moderate form of Islam (Sufi). This could help Moscow isolate and neutralize members of the Caucasus Emirate. Indeed, key individuals in the group such as Umarov and Kosolapov are operating in a very hostile environment and can name many of their predecessors who met their ends fighting the Russians. Both of these men have survived so far, but having prodded Moscow so provocatively, they are likely living on borrowed time.

17. Maoists kill 75 police in central India attack. Not much comment, except to note that many countries, including ostensibly succesful and democratic ones, have violent, festering insurgencies. Russia/Chechnya is hardly unique.

18. Turkey Overtaking Germany No Wishful Thinking on Paradigm Shift (h/t Randy McDonald). “Turkey’s $620-billion economy could move ahead of Germany’s to become the third-biggest in Europe by 2050, behind Russia and the UK”. Such long-term projections are pretty useless, but it’s true that in the medium-term Turkey has bright prospects, in part thanks to its demographic vigor and favorable geographical position.

19. @ any Asian readers or people familiar with the region – how accurate is this “Spenglerian” article on “Asia’s Permanent Advantage” by Chan Akya?

For the frequent traveler, there is a stark dichotomy across the world. Almost without exception, traveling with an Asian carrier to any Asian airport is a pleasure. In contrast, using any airline domiciled in Europe or North America with passage through airports in that part of the world is stunningly inconvenient. …

When you leave the airport in Shanghai and can get to the main city 30 kilometers away within eight minutes on the superfast magnetic levitation train, you cannot help but notice that the actual technology for this wonder comes from Germany. Yet, there are no such trains in operation anywhere in Europe, let alone Germany. …

Surely this is because, here in Asia, we are in the biggest cities you say. … Well, drive from Shanghai in virtually any direction and the first time you see roads that are any worse than those around the city you are a good 200 kilometers away. And even there, the roads are better than many American motorways.

Yeah alright, so the Chinese truck driver barreling towards you looks like he hasn’t slept in three days (very likely), and there is the occasional car wrapped into the milestone on the side of the road; but none of that detracts from the sheer robustness of the infrastructure. …

And then the last observation sinks in. Every single Asian city is heaving at the edges, with millions of people. Yet, crime rates are negligible and social tensions appear well under control. A far cry from the banlieu of Paris or the Turkish quarter of Berlin, for example, not to mention the public housing nightmares of Chicago or Detroit.

It is not the gargantuan dams of China or the super-efficient underground in Singapore that impresses you, but rather the fact that even the most economically backward parts of Asia have taken growth to be their mantra. What’s more, they have the financial muscle to push it through.

With that, your despondency turns to depression. How, you ask, can the “developed” world ever regain its luster?

For a start, all American and European cities will have to reinvest hundreds of billions into their cities to rejuvenate the existing infrastructure. Then the states/smaller countries will have to connect the cities to the rest of the region, install new technology infrastructure, focus on customer service and improve productivity to new heights to compete with the Asians.

Ah, but a minor detail intervenes. Who has got the money to do all that? Well, let us raise taxes you say. Problem is, no one in your country is making much money in the first place so raising taxes will simply drive consumption down and drive the deficit wider. Well, let us borrow the lot you say. Trouble is, no one has the money to lend to you at your abysmally low rates. Except the Asians – who you then recall can play tough once in a while.

And that’s about when you reconcile to the inevitable future – Asia with its apparently permanent advantage on infrastructure and operating efficiency leaving Europe and North America ever further behind. Nothing appears to have the ability to reverse this trend.

See also It’s China’s World. We’re Just Living in It (Rana Foroohar & Melinda Liu) - “The middle kingdom is rewriting the rules on trade, technology, currency, climate—you name it.” Another related post on the same theme is Coal and Treasuries by Gregor McDonald.

20. Military blast.

• The Post New START Nuclear Arsenal – a summary: “1,550 strategic warheads; 700 deployed ICBMs, deployed SLBMs and deployed nuclear capable heavy bombers; A combined limit of 800 deployed and non-deployed ICBM launchers, SLBM launchers and nuclear capable heavy bombers.” See Sublime News #7 for more details.
• Sizing Up Sukhoi’s PAK FA 5th Gen Fighter. Summary: it is a superb dog-fighter and its IRST may be the first to pick up a hostile stealth fighter, but there are questions over whether the Russian MIC is advanced enough to produce and maintain many of these complex planes (more).
• Chinese Fleet Closes In On Okinawa, increases tensions since China started drilling offshore gas halfway between Okinawa and the mainland. Also illustrates increasing ambitions of the Chinese Navy (PS. No longer PLAN) to carve out a maritime buffer space beyond its eastern seaboard.
• South Korea buys CBU-105 sensor fuzed weapons, a cluster-type bomb that is programmed to hunt for tanks below it. An excellent way of stopping any Northern armored assault, this tilts the militay balance on the peninsula further in the South’s favor.
• Andrew Barton describes environmental warfare as a “target-rich environment” and predicts it will become more prevalent. That is in line with my own thinking.
• Iran gets advanced military speedboats, illustrating its asymmetrical strategy geared at closing down the Straits of Hormuz in the event of war with Israel or the US.
• France Backs Away From The Chinese Threat – France won’t supply Pakistan with advanced military hardware since it would pass them on to Chna.
• Case in point – China copies Swedish Bv206 all-terrain vehicle.
• Russia has problems with their Yasen nuclear powers cruise-missile subs.
• Gates Says U.S. Has Conventionally Armed ICBMs. They are not a good idea.
• Iran boosts air defenses with new missile system – an upgraded version of the Hawk, a 1960′s system and probably vulnerable to Israeli/US jamming.
• India sets sights on killer drones.
• Smart trucks in Afghanistan.
• Global IT Supply-Chain Insecurity is important.
• From the Monitor scam to the Gorschkov scam, corruption in military procurement – an eternal scam.
• Future for US naval procurement looks bleak as costs rise and budgets are slashed. Substantial decline in Navy size is inevitable.

21. Things are getting more interesting in North Korea. There is danger of famine. The people are increasingly disillusioned, but unlikely to revolt. A coup by pro-Chinese military officers is a possibility. “Rumors of a North Korean submarine being responsible for the March 26th sinking of a South Korean corvette are growing more popular in the media… Survivors of the explosion agree that the blast came from outside the ship.” Watch this space.

22. Russophobe & liberast watch.

• Link to The Soviet Story propaganda flick. I haven’t yet seen it, or plan to, despite having had the chance. (The screening coincided with my gym-going time).
• David Satter, respected Russia-watched: “The present Russian leadership not only does not care about America’s security concerns, it is indifferent to Russia’s own.” Need more be said?
• The bear is back: Poland’s tragedy, Russia’s gain (Arthur Herman) – “the most insane column in the entire history of mankind”, according to Mark Adomanis.
• Putin wins again: Rebuilding imperial Russia (Ralph Peters), whom Mark Adomanis says is “very likely the single most repulsive figure in American  journalism”. More on Ralph Peters.
• Paul Goble the Propagandist flip-flops from “Muslims will take over Russia!” in 2006 to “Muslims are no longer a demographic reserve” in 2010. Either way, however, Russia is doomed according to according to Goble’s cherry-picked sources. There is something resembling a “discussion” of this article on SWP’s blog.

23. Remember what I wrote about Russians’ attitudes to Stalinism in Sublime News #7? An “interesting” discussion about it developed on a far-right forum.

24. Flotsam and jetsam.

• GDP by… language (Randy McDonald).
• Phrases people search for to arrive at poemless blog.
• Spiegel has a 7-part series on The Failed Papacy of Benedict XVI.
• Richard Dawkins plans to arrest the Pope. George Monbiot approves.
• The “Pedophile’s Paradise” (Brendan Kiley) – “Alaska Natives are accusing the Catholic Church of using their remote villages as a “dumping ground” for child-molesting priests—and blaming the president of Seattle University for letting it happen.”
• Just An ‘Average Brunette’ from the Banlieue – the three female challengers to Sarkozy from the Socialist, Communist, and Green Parties. I hope they win!
• Journalist on the run from Israel is hiding in Britain: ‘Haaretz’ writer fled to London fearing charges over exposé on Palestinian’s killing. Now while there’s no argument Israel is a liberal democracy, it is highly influenced by the prerogatives of the national security state.
• Why are so many girls lesbian or bisexual?
• Ending the Myth of ‘Market Fundamentalism’ (Dean Baker)
• «Я опознал свою дочь» – the Moscow shahidka‘s father speaks out.
• For all their problems, North Korea remains firmly committed to Juche, release “Red Star” operating system based on Linux. (h/t Randy)
• Tea Partiers Are Fairly Mainstream in Their Demographics.
• San Francisco “anti-war” rally (are commies, Islamists) according to this conservative-leaning blogger.
• Stalinist Icon (h/t Jason)
• The East German bunker that was to have been the Warsaw Pact operational center for conducting a nuclear war against NATO forces in Europe.
• Cannibal trial halted after juror falls ill looking at pictures of girl, 16, who was ‘eaten with potatoes’. Why did Russia have to cancel the death penalty in deference to European cultural Diktat?
• Dmitry Rogozin: “Sergey Kovalev is a parody and a loser compared with the great human rights activist and intellectual Andrey Sakharov”. Links to К портрету Сергея Ковалёва.
• Tourist attractions… wait a second, how can that be?!
• How do you perform in this Zombie Survival Quiz?

2. Some Westerners like to condemn Russians for their ambivalence towards Stalin, since he killed far more Russians than Hitler! (This is a constant theme of anti-Stalin* and general Russophobe propaganda). Quite apart from this being simply wrong according to all objective estimates, Russians themselves say they suffered far more under four years of the Nazi assault than twenty plus years of Stalinism.

According to polls, 50% had a close relative die in the Great Patriotic War (33% – injured, 16% – missing in action). Only 14% say that nothing particularly bad happened to a close relative during the war. These answers are in line with the statistics on wartime demographic losses – some 27mn Soviet citizens died in that war (13mn Russian), of them 8.7mn soldiers (5.8mn Russian). In contrast, in response to the question, “Did anyone in your family suffer from the repressions shortly before or after the war?”, 22% of Russians said “yes”, while 63% said “no”. (Furthermore note that “suffer” does not imply death, since contrary to the popular anti-Soviet mythology most Gulag inmates survived).

* And before some fanatical ideologue comes out with the cheap “You’re a filthy Stalinist!” card, I would note that it is quite possible to condemn Stalin on the basis of his real crimes, without resorting to neo-Goebbelsian propaganda about “62 million victims of Communism” or “Stalin killed more Russians than Hitler”. If anything such rhetoric actually encourages the rehabilitation of Stalinism.

3. Related: The illiberalism of anti-Putinism (Mark Adomanis). Now make no mistake – as of now, I think he is one of the best, if not the best, “popular” Anglophone bloggers on Russian politics. Of course, I don’t agree with everything he writes, sometimes quite forcefully. Such as the following:

In short, if you’re willing to believe that, by virtue of opposing Putin, Russian communists aren’textremely nasty and scary people, you’re the sort of person who will believe anything.

Myself, I find it arrogant, narrow-minded, and frankly presumptuous to label a major stratum of a population as “extremely nasty and scary”. As another commentator pointed out, this is very similar to the rhetoric of the Russian “liberals” whom Mark attacks as conceited and illiberal. But instead of hearing it from me, feel free to go to the discussion in question and make you own conclusion.

4. The Return of the Reich watch. Carrying on from Sublime News #6, more from Stratfor on how Germany is becoming a “normal country” and unsettling traditional European arrangements in the process. First, Germany is no longer willing to underwrite EU stability, i.e. see the punitive terms of the bailout offered to Greece. Down the road, this might result in acrimony over the Common Agricultural Policy (benefiting France and the new Visegrad members) and the UK rebate, since a resurgent Germany is unlikely to want to pay for them as before. Second, the traditional Bismarckian policy of Germany is to “make a good treaty with Russia”; together with Nord Stream, this should increase the distance between Germany and Poland. A future consequence may be to reinforce the Visegrad-US relationship at the expense of EU integration.

Timothy Garton Ash has a quite brilliant historical overview in Berlin has cut the motor, but now Europe is stalled which I can’t help but quote in extenso:

On Saturday Helmut Kohl, the “chancellor of German unity“, will turn 80. To mark the occasion the chancellor, Angela Merkel, and many others in Germany will deliver nice tributes to old king Kohl; yet his country’s current approach to Europe, and especially to the embattled eurozone, risks dismantling his European legacy. If you ask why the European project is faltering today, one of the main reasons is that the German motor has stalled. And if you ask why that has happened, the short answer is: because Germany has become a “normal” nation, like France and Britain. Assuming, that is, anyone in their right mind would call us normal.

In the steps of his mentor, Konrad Adenauer, Kohl tirelessly insisted that German and European unity were “two sides of the same coin”. That coin eventually became the euro. Kohl, like most of his predecessors, was committed to European integration for two reasons: because, out of personal wartime experience, he believed in it; and because he understood that it served the German national interest. Only by reassuring Germany’s neighbours that Germany had changed, and was utterly devoted to integrating itself into Europe, could the Germans hope to achieve their national goal: the reunification of Germany in peace and freedom. It worked. When the chance came, unexpectedly, in 1989, Kohl seized it with both hands – and all Europe has benefited. We could not have a Europe whole and free without a Germany whole and free in its centre. …

Had he been chancellor today, Kohl’s response would surely have been to take the next step: putting the long-term politics of European unity before the short-term cost, but also moving towards a stronger fiscal, and by extension political, union. In the meantime, however, this has become a different Germany. Until unification, Germany wanted to be super-European, for reasons of personal memory, idealism and historical responsibility; but it also needed to be, in its own national interest. After unification, at last a fully independent, sovereign country, it no longer needed to be. Everything would now depend on the inner power of wanting.

Students of Germany then watched with interest to see if it would continue the exceptional European commitment of the Adenauer-to-Kohl Federal Republic. Or would it become a more “normal” nation state, like France and Britain, pursuing its own national interests, through European channels for choice, but on its own account, even at the expense of others, when it considered that necessary? The special relationship it developed with Russia, including the bilateral securing of its energy needs, gave a clear indication which way post-unification Germany was leaning. Now its response to the first historic crisis of the eurozone makes the conclusion definite.

Some critics blame Merkel personally for this. The former foreign ministerJoschka Fischer quips that the one-time Ms Europe seems to have become Frau Germania. Indeed, this cautious, consensus-building “chancellor of the centre” does not have the strategic boldness of an Adenauer or a Kohl; but even a bolder leader could only go so far against the grain of domestic opinion. And from the shrieking headlines of the tabloid Bild newspaper to the costive judgments of the German constitutional court it is plain that the Germans are not prepared to make any more sacrifices for the sake of “Europe”. For preference, they would probably rather have the D-mark back. Or, failing that, a right, tight little north European “nordo” (or perhaps “neuro”), leaving the feckless south Europeans to cope with a weaker “sudo” (or “pseudo” – hat-tip to the former Barclays boss Martin Taylor for this coinage). The economic ramifications are complex and uncertain, but this spring may yet be seen as the beginning of the end of the eurozone – that final, most daring step of postwar German Europeanism. …

So instead of complaining I note this final irony. Twenty years ago Eurosceptic British Conservatives shrieked with alarm at the prospect of a united Germany imposing a federal European superstate upon us. Some even cried: “A Fourth Reich!” Today, as Eurosceptic British Conservatives edge back towards power, we can see that the unintended result of German unification has actually been the emergence of a more British Europe: dramatically enlarged to the east, inter-governmental rather than federal, with Germany too calmly pursuing its own national interests in its own national way, like Britain and France. Come to think of it, Margaret Thatcher is the one who should be posting a message of thanks on Kohl’s 80th birthday website. Whether the old man would appreciate it is another question.

5. Lou Grinzo of Cost of Energy offers a useful graph summarizing the estimated cost / effectiveness ratios of various geoengineering options.

See also Hacking the planet: who decides?

6. Energy & climate blast.

• Copper Peak (Jean Laherrère) projected at c. 2020. (Gold peaked in 2000).

• James Lovelock: Humans are too stupid to prevent climate change - ”Even the best democracies agree that when a major war approaches, democracy must be put on hold for the time being. I have a feeling that climate change may be an issue as severe as a war. It may be necessary to put democracy on hold for a while.” Welcome to the ecotechnic dictatorship! (But really, kudos to Lovelock for having the balls to state this obvious but unpalatable fact).
• How Close will the U.K. Come to Running Out of Natural Gas in Storage this Spring? Britain’s minimum natural gas storage levels have seen a steady pattern of decline since 2005, in large part due to the depletion of its indigenous gas sources. Soon there will have to be additional LNG and Russian gas imports to prevent Britain from freezing during late winter. See also Power crunch looms for Britain. It is important to note that the UK is not only one of the most fiscally overstretched European nations (10%+ budget deficits for the next two years assuming reasonable growth), but also has one of the most precaurious energy situations.
• Riddles in the Dark (John Michael Greer)
• Our Future and the End of the Oil Age: Building Resilience in a Resource-Constrained World – a presentation by Dmitry Orlov.
• It’s STILL the coal, stupid (Lou Grinzo), or in other words, the brouhaha over Obama’s loosening of restrictions on offshore oil drilling is somewhat misplaced.
• The Copenhagen Accord at Three Months: 110 Countries Now Support a New Global Effort to Achieve Climate Safety. With interactive map.
• Koch Industries’ diabolical 20-year campaign to discredit AGW.
• Climate-row professor Phil Jones cleared of charges as anyone familiar with the situation would have expected from a neutral jury (note the hysterical denier rage in the comments). See the detailed write-up by Climate Progress.

7. Pavel Podvig writes on the New START treaty in numbers. The main conclusion is that the reductions are in fact very modest. See reproduced table below.

Russia

The United States (UPDATED 02/29/10)

8. Military blast.

• All Raucous On Cyber War Front
• China buys air defense systems from Russia. Some 15 S-300 batteries for around 2bn $. This sale isn’t detrimental to Russia, since 1) the Chinese already have a similar system in the HQ-9 “adapted” from stolen Russian and American data anyway, and 2) Moscow has the S-400 with incipient anti-ballistic missile capabilities and is developing the S-500 which is supposed to be a full-fledged ABM system.
• China’s DF-21 “carrier killer” ballistic missile and US plans to defend against it.
• F-16 Beats The F-35 – Romania to get 48 F-16C’s over 4.5bn $ by 2020.
• Russia’s fifth-generation tank the T-95 may be outed in 2010.
• RAF jets intercepted Russian bombers flying in British airspace, an increasingly frequent occurrence. AFAIK this is a two-way game – Russians too have complained of NATO aircraft violating their airspace.
• Dam Busting Russian Bombers At Work – apparently Russia uses bombers to blow away ice dams to prevent flooding. Cute.
• Russia begins constructing the 4th Borei submarine.

9. It appears the emerging consensus on the sinking of the South Korean corvette is that it detonated an old North Korean mine, though the hostile torpedo theory isn’t ruled out. Things may become clearer in a month once the ship is recovered and analyzed. Meanwhile, many rumors indicate that the hermit kingdom is now suffering from severe turbulence in the wake of the failed currency reforms.

One of the more damaging stories to spread through North Korea recently was the one about the several billion dollars Kim Jong Il has stashed in foreign banks. Bank secrecy laws in Europe, particularly Switzerland, have been under attack by major world economic powers, and it’s been getting harder to keep money hidden. The fact that Dear Leader Kim has billions stashed overseas, while millions go hungry in North Korea, is not very good PR.

An increasing unstable, and perhaps dangerous, situation. But at least they’ve finally completed Pyongyang’s first skyscraper after 23 years.

10. Serbians say sorry for 1995 Srebrenica massacre.

Serbia’s parliament has apologised for the Serb massacre of 8,000 Muslims in Srebrenica in 1995 but stopped short of calling the killings genocide, after a debate showed deep divisions over the country’s role during the Balkans conflict.

A document put forward by Belgrade’s ruling coalition of democrats and socialists condemning “the crime” and apologising that “not all was done to prevent this tragedy” was narrowly carried as Serbia continued its bid to become a member of the EU and attract business investors. …

They denied western accusations of mass executions and one, Slobodan Samardzic, warned: “Serbia will sign its own guilt with this declaration.” Another, Velimir Ilic, said that in Srebrenica, “the crime was no greater than in other places”, citing Croatian moves against Serbs.

Why should Serbia apologize for the Bosnian Serbs who were clearly not even under its control? Why apologize for it at all when doing so implies taking responsibility for genocide? I can’t believe the Serbs are naive or stupid enough to do it out of altruism, so clearly short-sighted economic reasons connected to EU membership are the cause. And the funny thing is that this act of false contrition only got them more humiliation from the Europeans.

The European Union, which has been coaxing Serbia into a historical reckoning about its bloody role in the Balkan wars of the 1990s, gave a cautious welcome Wednesday to a declaration by the Serbian Parliament that condemned the 1995 massacre of 8,000 Muslims in Srebrenica. But it warned that what amounted to reluctant, latter-day contrition about the worst massacre in Europe since World War II was insufficient if Serbia wanted closer ties with the bloc.

I would venture to guess that Germany wants an admission of genocide from Serbia particularly badly. After all, it is weighted down by the unique guilt of the Holocaust, and getting another European nation – in particular the Serbs whom they tried to exterminate in WW2 – to explicitly admit to genocide would lessen the “uniqueness” of the Holocaust and help justify Germany returning to acting like a “normal nation” in the international sphere, as it is already beginning to do (see above).

11. Venezuela / “Rise of the Rest” watch. Putin will help us get nuclear power, says Chávez, causing Western chauvinists to squirm with indignation.

Russia has said that it will help Venezuela to set up its own space industry and develop nuclear energy, the Latin American country’s President announced yesterday. The two have also signed a new contract to exploit Venezuelan oil and are discussing a raft of further military and energy deals.

The deal will allow Moscow to entrench its foothold in Latin America through a deepening alliance with America’s main regional foe. As the Russian Prime Minister Vladimir Putin visited Caracas, Venezuela’s vocal, anti-imperialist leader, President Chávez, said that the allies were building “a new, multipolar world”. …

They discussed a range of military deals and a $2 billion (£1.3 billion) line of credit for weapons purchases secured by Mr Chávez during a visit to Moscow in September… Venezuela has spent more than $4 billion on Russian weaponry since 2005, including tanks, helicopters, Sukhoi fighters and the S300 anti- aircraft missile system. The deals helped Russia to oust the US as the No 1 arms supplier to Latin America. …

Mr Chavez took the opportunity of the anniversary of the Falklands war to demand the UK relinquish this “bastion of colonialism”, cheering: “Long live the Malvinas, they are Argentina’s”. He reiterated that Venezuela would stand beside Argentina in any war although he added “we don’t want conflict”.

A few comments. First, developing a nuclear industry would be highly beneficial for Venezuela. Though it theoretically has a lot of oil, most of it is unconventional heavy stuff locked up in the Orinoco belt that will probably never be exploited on a large scale because of the massive energy and water costs. Meanwhile, Venezuela’s current oil production is in slow decline. Second, Venezuelan arms acquisitions appear to be essentially defensive in nature, and perhaps partly aimed at buying off the conservative officer class. They certainly don’t constitute a real offensive threat to Colombia, whose terrain is unsuited for mobile armored warfare and is defended by a large, experienced army (not to mention 2,000 US troops).

Finally, one big, ongoing thing in Venezuela is the electricity crisis. This is due to a confluence of several factors: 1) a severe drought that has severely reduced water levels on the three dams that generate 70% of its electricity, – caused by this year’s El Nino and seen in China too, 2) the big rise in electricity demand during recent years, fueled by Venezuelans’ rising prosperity, while investment into the electricity-generating sector was slow to react. (Charmingly, one of the measures used to contain the crisis is to get soldiers to give out free energy-efficient light bulbs). This is all of course highly inconvenient for Chavez, but there is very little likelihood that it will topple him.

12. Interesting tidbit on Poland. In Sublime News 3, I referenced a discussion I had on Adomanis’ blog on Poland’s demographic and economic future. One of the major reasons for pessimism is that even if Polish fertility rates climb back up, labor demand from aging Western European states like Germany will only result in an accelerating exodus of young Polish workers, which will undermine any hopes of “convergence” to German levels of income. I disagreed with this:

I am not a big fan of the idea that West European labor shortages will prove an irresistible magnet to East-Central European laborers.

First, the economic disparity is no longer as big as it once was. Poland already has nearly 60% [AK edit: actually 52%] of Germany’s GDP per capita, and is more economically dynamic (because it is catching up). And Poland is one of the poorer Visegrad nations.

Second, migrants are drawn to economic dynamism – the highest inflows in the last ten years went to Britain, Ireland, Spain, etc, not Italy or Germany (which are demographically worse off). You say that Germany, Italy, etc will face labor shortages. But that assumes economic growth and growth of demand for labor can sustainably continue there. I think that assumption is questionable.

Why work in foreign nations who look down on you and where you pay a large chunk of your (stagnant) salary to support their elderly, when you can work in a still-growing Poland?

Article from March 22, 2010: Germans travel to Poland for work. “Unemployed Germans have begun travelling to Poland in search of jobs – in a dramatic reversal of the usual trend for immigrant workers.”

13. Russia watch. Detailed GDP stats revealed for 2010 (7.9% decline). In summary: agriculture 0%, extractive -3%, manufacturing -15%, construction -17%, retail -9%, finance 2% (!), government expenditures 2%. As shown in the graph below, the crisis essentially knocked Russia back to 2007.

Nonetheless, the emerging consensus is that it was a short-lived shock. Russia – Europe’s Bright Light of Growth. Not a headline you normally expect from CNBC, but with most commentators now predicting growth of 4-6% in 2010, there you go:

As the investment community gains confidence in the likelihood of a sustained economic rebound, Russia has emerged in far better shape than many other European markets. In fact, with low debt, inflation under control, a large consumer base primed to buy goods and services, and the price of oil recovering, Russia may well be the most dynamic place on the continent.

14. More on Eurasia.

• Russian Leader Meets Burjanadze: What is on Putin’s Mind? (Jamestown)
• Имя модернизации — социализм – Zyuganov, KPRF chief, on Medvedev’s modernization plans.
• Govt OKs Stalin Monument, Flirts With USSR 2 (Ukrainiana)

15. Ever wonder why Afghan insurgents love IED’s so much? The Weakness of Taliban Marksmanship…

16. Not often that I agree with Daniel Pipes, Iraq’s Cosmetic Election is an exception…

“It takes a cynical mind not to share in the achievement of Iraq’s national elections.” So writes the Wall Street Journal editorial board today. I’m no cynic, but my mood about Iraq could variously be described as depressed, despairing, despondent, dejected, pessimistic, melancholic, and gloomy.

That’s because the Iraqi regime (along with those of Afghanistan, Lebanon, and the Palestinian Authority) is a kept institution that cannot survive without constant American support. As long as Washington pumps money and sacrifices lives to maintain the Baghdad government, the latter can hobble along. Remove those props and Iranian-backed Islamists soon take over.

17. Floatsam and Jetsam.

• Я “живущий в США российский экономист”.
• Check out Alexa Meade’s art. Normally, paintings try to imitate photography. Here, photography tries to imitate paintings!
• Google Shows How HTML5 Can Run Quake In The Browser.
• Krugman: GOP taken over by nutters.
• I Was Colonel Schultz’s Private Bitch. “Pocket books called Stalags were practically the only pornography available in the conservative Israeli society of the early 1960s. Though it was claimed that the Stalags were translated from English, they were actually created and written by Israelis.”
• Briton recalls his risky view of Auschwitz horror
• The Sex Scholar: Decades before Kinsey, Stanford professor Clelia Mosher polled Victorian-era women on their bedroom behavior—then kept the startling results under wraps
• Pfizer ordered to pay up over ‘AIDS-like’ virus infections; creates dummy corporation to do it as to as not interrupt its relations with Medicare and Medicaid. Quoting a commentator, “Wow, I wish I could create a dummy corporation to take the rap for any illegal activity that I could get involved with.” (h/t eXiled Online)
• Welcome to Flatland! Way out of line…

18. Хрїстóсъ воскрéсе! Воистину воскресе! (My recommended Paschal reading: Three Versions of Judas by Jorge Luis Borges).

2. When I meet people, I sometimes mention the S/O blog as one of the things I do if I think they might be interested in its material. My problem – somewhat paradoxically, as its author – is that I also have difficulties in summarizing what it is about. Erm… Russia. Peak oil. EROEI. What’s that? Futurism. So what do you think will happen? I look at trends, and possible discontinuities, for example… Anyhow, I don’t feel like I’m doing it right. I’d appreciate it if you could help me out, e.g. by writing down three or four sentences that distill the essence of S/O.

3. A lot of Not So Good news on the climate change front. The subsea permafrost of the East Siberian Arctic Shelf is destabilizing, possibly threatening to uncork massive amounts of methane into the atmosphere over just a few decades (i.e. instantaneous on the geological timescale). This is bad because methane is much more potent than CO2 over timescales of decades. There is a danger that the process will pass a threshold beyond which it acquires runaway characteristics, raising global temperatures by as much as 8-10C. Needless to say, such an extreme hothouse state would spell the end of industrial civilization, maybe even homo sapiens. Therefore, should global warming runaway, geoengineering will almost certainly be attempted as a “last gamble”.

Methane release from the not-so-perma-frost is the most dangerous amplifying feedback in the entire carbon cycle.  Research published in Friday’s journal Science finds a key “lid” on “the large sub-sea permafrost carbon reservoir” near Eastern Siberia “is clearly perforated, and sedimentary CH₄ [methane] is escaping to the atmosphere.”

Scientists learned last year that the permafrost permamelt contains a staggering “1.5 trillion tons of frozen carbon, about twice as much carbon as contained in the atmosphere,” much of which would be released as methane.  Methane is  is 25 times as potent a heat-trapping gas as CO2 over a 100 year time horizon, but 72 times as potent over 20 years!

The carbon is locked in a freezer in the part of the planet warming up the fastest (see “Tundra 4: Permafrost loss linked to Arctic sea ice loss“).  Half the land-based permafrost would vanish by mid-century on our current emissions path (see “Tundra, Part 2: The point of no return” and below).  No climate model currently incorporates the amplifying feedback from methane released by a defrosting tundra. [AK: See MIT study using upgraded model that takes this into account].

The new Science study, led by University of Alaska’s International Arctic Research Centre and the Russian Academy of Sciences, is “Extensive Methane Venting to the Atmosphere from Sediments of the East Siberian Arctic Shelf” (subs. req’d).  The must-read National Science Foundation press release (click here), warns “Release of even a fraction of the methane stored in the shelf could trigger abrupt climate warming.”  The NSF is normally a very staid organization.  If they are worried, everybody should be.

It is increasingly clear that if the world strays significantly above 450 ppm atmospheric concentrations of carbon dioxide for any length of time, we will find it unimaginably difficult to stop short of 800 to 1000 ppm.

There are so many positive feedbacks to global warming in the Arctic – it is both the canary and the gas in the coal mine. Do yourself a favor and read the whole article.

James Cascio (one of the leading thinkers about geoengineering) writes about using methanotrophic bacteria, genetically-engineered to survive the cold Arctic seas, to oxidize the excess methane in that region. He also stresses that if the methane gun goes off, we may have no choice to attempting large-scale geoengineering.

If the frozen methane in the Siberian ocean is melting faster, our options are extremely limited. We’d no longer be in a position to stop the melting, even by ceasing all greenhouse gas production today; the temperature increases we’re seeing now are the results of greenhouse gases put into the atmosphere decades ago. And when methane melts, it appears to do so quickly — there are signs that past methane clathrate events took less than a human lifetime. This is why I think that methane melt would inevitably mean geoengineering.

Probably a more realistic, and certainly cheaper, proposal than a 100,000 square mile sun shade.

4. A good, albeit depressing, article by George Monbiot on the intellectuals’ fallacy that reason persuades. Unfortunately for the world, it’s the opposite.

5. Iraq Opens Up to Foreign Oil Majors – Mission Accomplished!

The contracts awarded in two auctions, which pay a per-barrel fee for development work rather than granting a share in the production itself, will cost the companies a total of about $100 billion to develop deposits, Oil Minister Hussain al-Shahristani said in December. Iraq, with the world’s third-largest oil reserves, will earn about $200 billion a year. …

A group led by BP, which vies with Shell as Europe’s largest oil company, will receive $2 billion per year in fees to develop the Rumaila field. A Shell-led group will get $913 million and a group led by Exxon, the largest U.S. oil company, will receive $1.6 billion per year. Each calculation is based on the agreed-to per-barrel fee times the maximum production level.

“We see this as the beginning of a long-term relationship with Iraq and will continue to look for further opportunities,” Andy Inglis, BP’s chief executive for exploration and production, said on a conference call March 2.

This is not looting, as hardcore critics of US foreign policy / imperialism assert. The contracts were signed on favorable terms to Iraq (i.e. not the production-sharing agreements, or PSA’s, typically arranged with corrupt Third World states). The main hope is that under the current plans, a rapid surge in Iraqi production will postpone global peak oil (World Oil Capacity to Peak in 2010 Says Petrobras CEO) by up to a decade. This is important because cheap oil flows are one of the key foundations of Pax Americana and of the global (neo)liberal internationalist order.

[History of Iraqi oil production].

Will this actually work? I am skeptical. The optimistic scenario assumes the confluence of all the best outcomes in the following:

1. Iraq’s reserves are not massively overstated for political reasons like in the rest of OPEC.
2. The security situation in Iraq remains stable, unlikely given the fragility of the post-2008 agreements between ethnic / religious clans, and the influence Iran weilds over key political factions.
3. No geopolitical disruptions, such as Iran blocking the Strait of Hormuz or raiding Iraqi oil installations, e.g. in response to a US-Israeli strike on its nuclear facilities.
4. Iraq manages to attract the technical talent to make this work. Developing oil fields is a highly complex organizational endevour, and most of its managerial talent emigrated in 2003-2008.

Finally, history itself suggests that the odds are against the Al-Shahristani plan / optimistic scenario from being realized. Note that at three distinct prior points in the last three decades, it appeared that Iraq might become a dominant oil exporter. The buildup in the 1970′s was interrupted by the Iran-Iraq War. The late 1980′s recovery was utterly reversed by the Gulf War. The 1990′s recovery was stunted by UN sanctions, and output again dipped during the 2003 invasion of Iraq and remained depressed throughout the anarchic 2003-2008 period.

The common pattern? All Iraq’s historic rises in oil production, or recoveries, were interrupted by geopolitical flux in decadal cycles. Considering the current, irreconcilable tensions between Iran, Israel and the US, is it really outlandish to suggest that some renewed geopolitical shock in the early to mid-2010′s once again disillusions the Iraq oil bulls?

6. Collapse of Pax Americana watch. Complexity and Collapse: Empires on the Edge of Chaos by Niall Ferguson, court historian of the American empire. I highly recommend registering with FP and reading the article free.

What matters most is that in such systems a relatively minor shock can cause a disproportionate — and sometimes fatal — disruption. As Taleb has argued, by 2007, the global economy had grown to resemble an over-optimized electrical grid. Defaults on subprime mortgages produced a relatively small surge in the United States that tipped the entire world economy into a financial blackout, which, for a moment, threatened to bring about a complete collapse of international trade.

Though the more fundamental source of system strain was the first peak oil shock, this analysis is still valid and correct.

Regardless of whether it is a dictatorship or a democracy, any large-scale political unit is a complex system. Most great empires have a nominal central authority — either a hereditary emperor or an elected president — but in practice the power of any individual ruler is a function of the network of economic, social, and political relations over which he or she presides. As such, empires exhibit many of the characteristics of other complex adaptive systems — including the tendency to move from stability to instability quite suddenly. But this fact is rarely recognized because of the collective addiction to cyclical theories of history. …

But what if fourth-century Rome was simply functioning normally as a complex adaptive system, with political strife, barbarian migration, and imperial rivalry all just integral features of late antiquity? Through this lens, Rome’s fall was sudden and dramatic — just as one would expect when such a system goes critical. … the final breakdown in the Western Roman Empire began in 406, when Germanic invaders poured across the Rhine into Gaul and then Italy. Rome itself was sacked by the Goths in 410. … Byzantium lived on, but the Western Roman Empire was dead. By 476, Rome was the fiefdom of Odoacer, king of the Goths.

What is most striking about this history is the speed of the Roman Empire’s collapse. In just five decades, the population of Rome itself fell by three-quarters. Archaeological evidence from the late fifth century — inferior housing, more primitive pottery, fewer coins, smaller cattle — shows that the benign influence of Rome diminished rapidly in the rest of western Europe. What Ward-Perkins calls “the end of civilization” came within the span of a single generation.

I am an adherent of the fast collapse school. Most historical examples conformed to this pattern.

The most recent and familiar example of precipitous decline is, of course, the collapse of the Soviet Union. With the benefit of hindsight, historians have traced all kinds of rot within the Soviet system back to the Brezhnev era and beyond. Perhaps, as the historian and political scientist Stephen Kotkin has argued, it was only the high oil prices of the 1970s that “averted Armageddon.” But this did not seem to be the case at the time. In March 1985, when Mikhail Gorbachev became general secretary of the Soviet Communist Party, the CIA estimated the Soviet economy to be approximately 60 percent the size of the U.S. economy. This estimate is now known to have been wrong, but the Soviet nuclear arsenal was genuinely larger than the U.S. stockpile. And governments in what was then called the Third World, from Vietnam to Nicaragua, had been tilting in the Soviets’ favor for most of the previous 20 years. Yet less than five years after Gorbachev took power, the Soviet imperium in central and Eastern Europe had fallen apart, followed by the Soviet Union itself in 1991. If ever an empire fell off a cliff — rather than gently declining — it was the one founded by Lenin.

True that it collapsed suddenly, but as I wrote previously, this was because the dictator (Gorbachev) lost the will to enforce coercion – i.e. the thing that made central planning work. Otherwise, the Soviet system was entirely sustainable (which is not to say that it was “optimal”, “good”, “dynamic”, etc). See Harrison 2001.

If empires are complex systems that sooner or later succumb to sudden and catastrophic malfunctions, rather than cycling sedately from Arcadia to Apogee to Armageddon, what are the implications for the United States today? First, debating the stages of decline may be a waste of time — it is a precipitous and unexpected fall that should most concern policymakers and citizens. Second, most imperial falls are associated with fiscal crises. All the above cases were marked by sharp imbalances between revenues and expenditures, as well as difficulties with financing public debt. Alarm bells should therefore be ringing very loudly, indeed, as the United States contemplates a deficit for 2009 of more than $1.4 trillion — about 11.2 percent of GDP, the biggest deficit in 60 years — and another for 2010 that will not be much smaller. Public debt, meanwhile, is set to more than double in the coming decade, from $5.8 trillion in 2008 to $14.3 trillion in 2019. Within the same timeframe, interest payments on that debt are forecast to leap from eight percent of federal revenues to 17 percent.

These numbers are bad, but in the realm of political entities, the role of perception is just as crucial, if not more so. In imperial crises, it is not the material underpinnings of power that really matter but expectations about future power. The fiscal numbers cited above cannot erode U.S. strength on their own, but they can work to weaken a long-assumed faith in the United States’ ability to weather any crisis. For now, the world still expects the United States to muddle through, eventually confronting its problems when, as Churchill famously said, all the alternatives have been exhausted. Through this lens, past alarms about the deficit seem overblown, and 2080 — when the U.S. debt may reach staggering proportions — seems a long way off, leaving plenty of time to plug the fiscal hole. But one day, a seemingly random piece of bad news — perhaps a negative report by a rating agency — will make the headlines during an otherwise quiet news cycle. Suddenly, it will be not just a few policy wonks who worry about the sustainability of U.S. fiscal policy but also the public at large, not to mention investors abroad. It is this shift that is crucial: a complex adaptive system is in big trouble when its component parts lose faith in its viability.

… The next phase of the current crisis may begin when the public begins to reassess the credibility of the monetary and fiscal measures that the Obama administration has taken in response [AK: this has been a constant S/O theme for a year now]. Neither interest rates at zero nor fiscal stimulus can achieve a sustainable recovery if people in the United States and abroad collectively decide, overnight, that such measures will lead to much higher inflation rates or outright default. As Thomas Sargent, an economist who pioneered the idea of rational expectations, demonstrated more than 20 years ago, such decisions are self-fulfilling: it is not the base supply of money that determines inflation but the velocity of its circulation, which in turn is a function of expectations. In the same way, it is not the debt-to-GDP ratio that determines government solvency but the interest rate that investors demand. Bond yields can shoot up if expectations change about future government solvency, intensifying an already bad fiscal crisis by driving up the cost of interest payments on new debt [another major S/O theme - compound debt trap or inflation]. Just ask Greece — it happened there at the end of last year, plunging the country into fiscal and political crisis.

Finally, a shift in expectations about monetary and fiscal policy could force a reassessment of future U.S. foreign policy. There is a zero-sum game at the heart of the budgetary process: if interest payments consume a rising proportion of tax revenue, military expenditure is the item most likely to be cut because, unlike mandatory entitlements, it is discretionary. [AK: see my argument that the US military-industrial complex will be hit particularly hard by the coming debt & fiscal crises] … And what about the United States’ other strategic challenges? For the United States’ enemies in Iran and Iraq, it must be consoling to know that U.S. fiscal policy today is preprogrammed to reduce the resources available for all overseas military operations in the years ahead. [AK: This is the geopolitical component of collapse]

Defeat in the mountains of the Hindu Kush or on the plains of Mesopotamia has long been a harbinger of imperial fall. It is no coincidence that the Soviet Union withdrew from Afghanistan in the annus mirabilis of 1989. What happened 20 years ago, like the events of the distant fifth century, is a reminder that empires do not in fact appear, rise, reign, decline, and fall according to some recurrent and predictable life cycle. It is historians who retrospectively portray the process of imperial dissolution as slow-acting, with multiple overdetermining causes. Rather, empires behave like all complex adaptive systems. They function in apparent equilibrium for some unknowable period. And then, quite abruptly, they collapse. To return to the terminology of Thomas Cole, the painter of The Course of Empire, the shift from consummation to destruction and then to desolation is not cyclical. It is sudden.

That said, the suddenness shouldn’t be overstated. In reality, when a complex system collapses, its constituent parts tend to reassemble into a simpler structure after some period of flux; but since this simpler structure requires fewer investments to maintain itself, the resulting entity can, in principle, be even more vigorous and expansionist than the hypertrophied empire that preceded it. For instance, the late USSR was decrepit, at home and abroad; today’s Russia is brashly expansionist, for its radical post-Soviet “simplification” has freed up resources away from the maintenance of complexity. Likewise, following the collapse of Pax Americana, the American Republic will remain; it will be like a crustacean that has shed its shell, and it will, if anything, be enthusiastic about reclaiming its old spheres of influence in a far blunter, more aggresive manner than it maintains Pax Americana today.

[Desolation by Thomas Cole (last stage of empire)].

(Overall I like Ferguson’s work, especially the earlier ones before he became famous and adopted an air of aloof arrogance - The Pity of War is a masterpiece of historical revisionism. BTW. I met him once when he was giving a talk about his new book The War of the World: Twentieth-Century Conflict and the Descent of the West (certainly not his best book, IMO). He made the surprising claim that Iran today is as big a threat to US hegemony as Imperial Germany was to the UK in 1914. I took issue with this, citing Iran’s vastly weaker economy, military, etc relative to Germany a century ago, which by 1914 had twice the UK’s steel production, Europe’s most powerful armed forces, and leadership in the new chemical and electrical engineering industries. His answer to my criticism was unsubstantive and unimpressive. Nowadays, I realize that in a way he was correct, however. Though Iran cannot stand head-to-head against the US, 1) today’s US Empire is a much more fragile system than the British Empire and 2) in particular, Iran can hit it the US at a criticial position – its reliance on cheap oil. British power in 1914 relied on its financial strength, Royal Navy, and coal. Germany was powerless to do anything about the latter two, though over four years of total war it did indirectly undermine the former, since Britain’s military expenditures shifted the balance of financial power to the US. In contrast, Iran can hit directly at the heart of US power – the global oil system.)

7. Who owns US debt? One interesting thing I observe in those figures is that in the last half-year, America’s strategic competitors (China, Russia) have slightly reduced US Treasury holdings, whereas its allies (Britain, Canada, Japan, France, Australia, Poland) tended to increase them. Plus, there are suspicions / conspiracy theories? that the US, it’s own best ally, is buying its own debt.

8. Economic apocalypse watch. Europe’s banks brace for UK debt crisis - UniCredit has alerted investors in a client note that Britain is at serious risk of a bond market and sterling debacle and faces even more intractable budget woes than Greece.

Fitch warns Britain and questions Greek rescue as sovereign risks grow:

A string of European states are stepping up the pace of retrenchment, aiming to cut deficits to 3pc of GDP within three years. The risk is that Britain will soon stick out like a sore thumb, left behind with a shockingly large deficit long after such loose fiscal policy can be justified as a crisis measure. The UK deficit this year is 12.6pc of GDP, the highest among G10 states.

The Government is clearly counting on a “Korean” recovery, modelled on Korea’s fast return to trend growth following the Asian crisis in 1998. It relies on rising output and tax revenues to plug much of the deficit. “This is an optimistic assumption,” said Fitch.

The Coming Greek Debt Bubble by Peter Boone and Simon Johnson.

By the end of 2011 Greece’s debt will around 150% of GDP (the numbers here are based on the 2009 IMF Article IV assessment; we make some adjustments for the worsening economy and the restating of numbers since that time – for example, the fiscal deficit in 2009 will likely turn out to be about 8 percent, which is double what the IMF expected until recently).  About 80 percent of this debt is foreign owned, and a large part of this is thought held by residents of France and Germany.  Every 1 percentage point rise in interest rates means Greece needs to send an additional 1.2 percent of GDP abroad to those bondholders.

What if Greek interest rates rise to, say, 10% – a modest premium for a country which has the highest external public debt/GDP ratio in the world, which continues (under the so-called “austerity” program) to refinance even the interest on that debt without actually paying a centime out of its own pocket, and which is struggling to establish any sustained backing from the rest of Europe?  Greece would need to send at total of 12% of GDP abroad per year, once they rollover the existing stock of debt to these new rates (nearly half of Greek debt will roll over within 3 years).

This is simply impossible and unheard of for any long period of history.  German reparation payments were 2.4 percent of GNP during 1925-32, and in the years immediately after 1982, the net transfer of resources from Latin America was 3.5 percent of GDP (a fifth of its export earnings).  Neither of these were good experiences. …

The French and Germans are apparently actually encouraging banks, pension funds, and individuals to buy these bonds – despite the fact senior politicians must surely know this is a Ponzi scheme, i.e., people can get out of Greek bonds only to the extent that new investors come in.  At best, this does nothing more than postpone the crisis – in the business, it is known as “kicking the can down the road.”  At worst, it encourages less informed people (including perhaps pension funds) to buy bonds as smarter people (and big banks, surely) take the opportunity to exit.

While the French and German leadership makes a great spectacle of wanting to end speculation, in fact they are instead encouraging it.  The hypocrisy is horrifying – Mr. Sarkozy and Ms. Merkel are helping realistic speculators make money on the backs of those who take seriously misleading statements by European politicians.  This is irresponsible.

Eurozone could risk ‘sovereign debt explosion’ - Europe’s governments are at increasing risk of an interest rate shock this year as the lingering effects of the Great Recession drive debt issuance to record levels and saturate bond markets, according to Standard & Poor’s.

9. John Michael Greer makes a post excellent even by his high standards, Barbarism and Good Brandy. Emergy, energy concentrations, and economic triage for dummies.

10. A stunning 80% of Internet users around the world see Internet access as a fundamental human right. (This is an illustration of the amazing centrality the Internet has assumed in our lives over the past decade. The son of ARPANET is easily the most significant invention of late industrialism – so significant, that as far as I know uniquely, it created an entirely new social, economic, and military environment – that of cyberspace).

The BBC has a map of the spread of Internet penetration around the world from 1998-2008. Just ten years ago, the only “wired societies” were those of the advanced world. Today, even nations like Brazil, Iran, and Belarus have widespread Internet penetration. With 29% penetration as of end-2009, China has decisively overtaken the US as the nation with the most netizens.

Within the next 2-3 years, the Internet is projected to 1) become much, much faster, by orders of magnitude, and 2) penetration will become near-universal in all but the poorest nations.

11. One example of how the Internet is changing the world – people put their shit up and it is coming back to bite them in the ass. Back from 2005 - Bloggers Need Not Apply.

That’s when the committee took a look at their online activity. In some cases, a Google search of the candidate’s name turned up his or her blog. Other candidates told us about their Web site, even making sure we had the URL so we wouldn’t fail to find it. In one case, a candidate had mentioned it in the cover letter. We felt compelled to follow up in each of those instances, and it turned out to be every bit as eye-opening as a train wreck. [AK: I don't mention my blog on these occasions unless what I've written there is directly relevant to it. That said, I make absolutely no effort to hide my online work - nor would I ever consider doing it]

We’ve all done it — expressed that way-out-there opinion in a lecture we’re giving, in cocktail party conversation, or in an e-mail message to a friend. There is a slight risk that the opinion might find its way to the wrong person’s attention and embarrass us. Words said and e-mail messages sent cannot be retracted, but usually have a limited range. When placed on prominent display in a blog, however, all bets are off. …

It would never occur to the committee to ask what a candidate thinks about certain people’s choice of fashion or body adornment, which countries we should invade, what should be done to drivers who refuse to get out of the passing lane, what constitutes a real man, or how the recovery process from one’s childhood traumas is going. But since the applicant elaborated on many topics like those, we were all ears. And we were a little concerned. It’s not our place to make the recommendation, but we agreed a little therapy (of the offline variety) might be in order. …

You may think your blog is a harmless outlet. You may use the faulty logic of the blogger, “Oh, no one will see it anyway.” Don’t count on it. Even if you take your blog offline while job applications are active, Google and other search engines store cached data of their prior contents. So that cranky rant might still turn up. [AK: This is really stating the obvious]

The content of the blog may be less worrisome than the fact of the blog itself. Several committee members expressed concern that a blogger who joined our staff might air departmental dirty laundry (real or imagined) on the cyber clothesline for the world to see. Past good behavior is no guarantee against future lapses of professional decorum. … [AK: I would suggest Tribble's department go the whole nine yards and ban the Internet in their workplace. I mean past good behavior is no guarantee that someone wouldn't go over to blogger.com and start up a blog within 5 minutes. Even better, we wouldn't have to read his parochial diatribes]

We’ve seen the hapless job seekers who destroy the good thing they’ve got going on paper by being so irritating in person that we can’t wait to put them back on a plane. Our blogger applicants came off reasonably well at the initial interview, but once we hung up the phone and called up their blogs, we got to know “the real them” — better than we wanted, enough to conclude we didn’t want to know more. [AK: Likewise, this is enough for me to conclude that I don't want to work with or study under Tribble and his ilk either. So we do each other a favor ]

Ivan Tribble is the pseudonym of a humanities professor at a small liberal-arts college in the Midwest.

The anonymous beigeocrat who wrote this article is both 100% correct and an excellent reason to blog under one’s own name.

It’s true that associating your real-life “True Name” with the writings, rantings, and ravings of an online avatar may potentially result in real-life consequences. Unsuccessful job applications, denunciations, and other Kafkaesque nightmares are distinct possibilities. (We live in a society that likes to pretend it’s free, even makes a religion of it, whereas in reality it is just a multitude of centrally planned corporate dictatorships and professional guilds). Surely it’s best to conform, get yourself a nice cushioned job, and pursue the American Dream of ever bigger living boxes and higher-horsepower wheeled boxes with Stakhanovite fervor?

That is what most people do – the premeds with no life except studying, the grad students desperately seeking tenure, the office robots who don’t make it to the top of the corporate pecking order, all in thrall to the Tribbles of the world. But is this really a free, or even satisfying, existence?

I too was under the System’s spell until about a year and a half ago (I assume the timeline based on when I dropped my anonymity). I now realize – true, still more in theory than in practice – that expending great efforts on spinning the careerist hamster wheel is pointless, even idiotic (far better to own the wheels and hamsters yourself). I also realize that the world now has so many hamsters and so many wheels that sustaining them far into the future is probably unrealistic. I am also thankful that I’ve come to these conclusions in my early 20′s, rather than in my 40′s, a time when the same realizations tend to cause midlife crises… Real freedom only begins with freedom from fear.

Incidentally, that is why I respect people who are unafraid to tell it like it is under their true names (e.g. Leos Tomicek), even when I don’t agree them on most things (e.g. Craig Pirrong).

[Zaporozh'e Cossacks writing a letter to the Sultan by Ilya Repin].

I guess I’m rambling now, displaying a lack of focus to the search committee picking over this entry. Back on topic. Leaving aside questions of principle, I don’t even think that Tribble is correct in his practical conclusions that blogging is almost always bad for job applications, etc. If you annoy someone with your Russophile or doomer views*, big deal – you don’t get the position (one out of at least hundreds of others), and you are the better off for it – i.e. you won’t have to deal with a judgmental, opinionated boss. However, every so often your views will find a surprisingly warm reception, allowing you to establish a strong, friendly rapport based on common values with your prospective employers and colleagues.

Finally, the source of Tribble’s critique of public blogging comes from his infatuation with the traditional academic establishment, which is very conservative and mafia-like in its cliquishness. The democratic Internet, which eliminates the need for the current, broken system of peer review, and gives voice to organic intellectuals as never before, is viewed with deep suspicion. No wonder. I’ve blogged for two years as a hobby, and I already managed to get cited on Google Scholar with absolutely zero effort on my part. Such possibilities must be immensely frustrating to the old school who have to jump through the traditional hoops. But they are losing the war. As the Internet becomes ever more ubiquitous in our lives, and as limits to growth constrain the traditional, bureaucratized academic system, it will be bloggers and amateur enthusiasts, eccentrics and organic intellectuals, who will take over as the driving force behind social and cultural progress (though probably not technical R&D).

* That said, I probably wouldn’t recommend going public with extreme and unpopular views, such as neo-Nazism, “race realism”, or political Islamism (fundamentalist Christianity is totally cool though). Perhaps I’ll yet regret writing about Green Communism and ecotechnic dictatorship. Then again, one can always take up sustenance permaculture or sail off in a boat.

12. Turkey watch. Zavtra.com.ua: Turkey might activate its relations with Russia in retaliation to US (recognition of Armenian genocide). Turkey’s interests are diverging from those of the US on a range of issues, causing it to edge a bit closer to Russia.

That said, there’s absolutely no point in speaking about a solid alliance. This Eurasianist fantasy is just that, a fantasy. Russia and Turkey simply have too many potential clashes of interests (the Balkans, the Caucasus, the Black Sea, and Central Asia), which will eventually emerge into prominence because they are both rising Powers.

What is more likely are temporary marriages of interest, such as what we have now. Turkey might be interested in this to free up resources for increasing its influence over Iraq, Syria, the Balkans, and former-Soviet Central Asia; Russia will be interested in freeing up resources for its own geopolitical projects, i.e. reasserting hegemony over the Caucasus. Once the new Russian and neo-Ottoman Empires are both consolidated, their relations will deteriorate.

13. China watch. Beijing seeks a shift in geopolitics

More importantly, the Chinese Communist Party (CCP) leadership is gunning for a paradigm shift in geopolitics, namely, new rules of the game whereby the fast-rising quasi-superpower will be playing a more forceful role. In particular, Beijing has served notice that it won’t be shy about playing hardball to safeguard what it claims to be “core national interests”. …

Likewise, Central Party School strategist Gong Li said Beijing should “not yield a single inch” as far as matters such as Taiwan and Tibet are concerned. Professor Gong said while China is not yet a superpower that can throw its weight around on a global scale, Beijing should “brandish the sword” in areas affecting the country’s “core values and major interests”.

According to Yang Yi, a well-known scholar at the Beijing-based National Defense University, China has been thrust to the forefront of the global stage by force of circumstances. “Under such circumstances, it’s better that we take the initiative and be proactive and creative,” said General Yang. When faced with challenges and provocations, China should “show the flag and hit hard [at opponents]“, he added. “While we may suffer temporary damage, it is imperative that our opponent be dealt a blow that it cannot sustain.”

14. Robert Amsterdam writes about The Rise of the Franco-Russo Axis. I don’t agree with this characterization – as with Turkey and even Germany, it is more a temporary marriage of interests. France gets snubbed by the US, e.g. the most recent - France vows retaliation against US in air tanker dispute. Though volatile Sarkozy shows his displeasure by acquiescing to major commercial and military deals with Russia, the longer-term analysis suggests that France and Russia will be natural strategic competitors.

This comment by georgesdelatour (arguing that Britain and Russia are natural partners) got me thinking of European geopolitics in the 18th century. A rising Russia, surrounded by non-friendly Poland, Sweden, and Turkey. Friends with Habsburg Austria, and sometimes Prussia and England. Almost always aligned against France, which in turn allies with nations like Turkey and Poland to check Habsburg designs. Italy is disunited and Spain is weak. In essence, Russia’s relations tended to follow a chequerboard pattern – enemies with its neighbors (Turkey, Sweden, Poland), friends with its neighbors’ neighbors (the German states, Austria), enemies with its neighbors to the 3rd degree (France), and friends with its neighbors to the 4th degree (Britain).

As I noted in Europe, The Black Continent, a broadly similar geopolitical structure may appear within the next two decades, albeit with some differences – e.g. modern day Germany is more powerful than Prussia, whereas Habsburg Austria has no modern equivalent; Italy is an independent player; Turkey’s power is rising, rather than declining as with the Ottomans; and the US, though its global empire will probably collapse, will nonetheless remain a very powerful and significant player.

Based on the 18th century precedent, there is ground to believe that Russia and Britain will pursue good relations – especially since Britain will want for gas supplies since it will be suffering an energy crunch by the mid-2010’s. On the other hand, Britain is closely aligned with the US, whose primary goal is to preempt the emergence of a Eurasian hegemon. Since the Russian Empire is reconsolidating itself, this might limit the scope of any Anglo-Russian friendship.

15. Rise of Russian Empire watch. Azarov, close Yanukovych supporter/ POR member, becomes Ukraine’s PM. The new cabinet is dominated by the pro-Russian Party of Regions, with a few independents and smaller party members in the less important posts. The BYT bloc is in the opposition and seems to have reverted to its strident anti-Russian stance; the pro-Russian coalition now in power (POR / Litvin bloc / Communists / some defectors) is currently strong, though potentially unstable.

PS. The new cabinet is also all-male, which is surprising even by the generally low levels of political participation of women in E. European politics. Did Yanukovych get an allergy to all female politicians after his struggle with Yulia?

16. Even more on new Eurasian Empire. Stratfor has a series summarizing Russia’s designs on and activities towards reconsolidating its Eurasian Empire. The analysis is steretypically Stratforish, logical and hard-knuckled realist (perhaps to a fault?). But I essentially agree with it.

• Russia’s Expanding Influence, Introduction: The Targets
• Russia’s Expanding Influence, Part 1: The Necessities – Ukraine, Belarus, Kazakhstan, Georgia are considered vital. The first three are already back within Russia’s sphere of influence.
• Russia’s Expanding Influence, Part 2: The Desirables – the Baltics, Azerbaijan, Turkmenistan, and Uzbekistan.
• Russia’s Expanding Influence, Part 3: The Extras – Moldova, Armenia, Kyrgyzstan, Tajikistan.
• Russia’s Expanding Influence, Part 4: The Major Players – maintain good relations with Turkey, France, Germany, and Poland so as to prevent them from interfering too much in imperial reassertion.

See also Vladimir Putin forging ahead with vision of Eurasian empire.

17. Commentator Randy McDonald sent me this link which argues that nothing substantial may come out of the recent Eurasian-integration trends, just as nothing substantial came out of the Union state of Russia and Belarus after 1997. I could potentially sympathize with this view.

However, one major difference between today and the past two decades is that now 1) the West is in rapid decline, whereas 2) Russia’s relative rise is accelerating. Indeed, as suggested by Ferguson above (and numerous times on S/O), the entire global system may now be approaching a discontinuity that kills off today’s (neo)liberal cosmopolitan internationalism and massively reduces American influence. The old rules of the game will be thrown overboard.

Just like in human societies aspiring people flock around the alpha male of the tribe, so all nations like to bandwagon with what they believe is the stronger – or will soon become the stronger – nation. Or as Osama bin Laden put it, “when people see a strong horse and a weak horse, by nature, they will like the strong horse”. From the perspective of nations bordering a resurging Russia in the 2010′s, the new Eurasian Empire will appear to be the strongest horse in their vicinity.

18. Anti-neoliberal rant about Latvia’s economic collapse. You think Greece has problems? Try Latvia.

19. War watch. Indian Su-30 Fleet Expands Still More. A Russian Tragedy – conscript hazing (dedovschina) still influential. China roundup. North Korea Builds An Operating System (cyberwar). A Different World – interesting article about China’s encouragement of out-of-the-box military thinking. The South African Scam – it’s Navy is regionally dominant (no surprise there), but ill-trained. Picture Perfect – India’s military-industrial complex is inefficient.

20. Limits to Growth watch – water shortages. One of the less discussed issues, but one that is easily as significant as peak oil.

• Cyprus conflict closes leaders’ eyes to water shortage
• Tajik harvests left high and dry

PS. I hope to write a review of Pearce’s book When the Rivers Run Dry within the next few weeks.

21. America’s watch / Rise of the Rest / Waning of Pax Americana. Nikolas Gvosdev, a realist, on the BRIC Wall about the waning of Washington’s influence amongst the BRIC democracies.

Secretary of State Hillary Clinton returned empty-handed from Brazil. Neither Foreign Minister Celso Amorim or President Luiz Inacio Lula da Silva were responsive to her arguments for supporting stronger sanctions against Iran.

This shouldn’t have been a surprise. Brazil has long made clear its stance on the Iranian question: it wants proof that Iran is working not on mastering nuclear technologies, but on actually constructing a weapon. … Brasilia is not eager to condemn what it sees as activities that any rising power should have the right to engage in.

But the ramifications go far beyond getting Brazil’s support in the Security Council. Efforts to get a new stronger sanctions resolution are running against not only the expected resistance from China, but reluctance on the part of Turkey to endorse this approach. Meanwhile, India’s private sector shows no real enthusiasm for cutting off commercial relations with Tehran. Instead of showcasing the determination of the “international community,” the Obama administration is facing the reality of a divided world. Even if successful French diplomacy with Russia ameliorates Moscow’s opposition, the current drive for sanctions looks largely like a “Euro-Atlantic” initiative—and if so, it loses a good deal of its punch if half the world chooses to ignore them.

Two years ago, Washington was abuzz once again with the prospects for a “League of Democracies” that would support U.S. global leadership. But in the aftermath of Cyclone Nargis, which devastated Burma/Myanmar, a very clear rift opened up between the democracies of the advanced north and west, which advocated an intervention on humanitarian grounds, and the democracies of the south and east, which proved to be far more receptive to China’s call for defending state sovereignty. In the Doha round of trade talks and in the ongoing climate change negotiations, the leading democracies of the south and east—Brazil, Mexico, South Africa, India and Indonesia among them—have tended to line up with Beijing instead of joining Washington’s banner. …

The rebuff of Clinton in Brasilia this past week did not have to be a foregone conclusion. But it is a dramatic reminder that even the inspirational presidency of Barack Obama is not sufficient to pull the “southern democracies” into a closer partnership with the United States.

See also As NAFTA Growth Slows, Mexico Should Look South.

22. International Women’s Day.

• Some Thoughts on Russia and Feminism… (poemless)
• Domesticating March 8th; Consuming Russian Feminism (Sean)
• What I Believe: Feminism (my dialectical interpretation)

24. Other stuff.

• Could the Taliban be genetically linked to the Jews?
• Navy Recruitment Commercials: USA vs Japan (video humor)
• French bread spiked with LSD in CIA experiment (I wonder if the CIA still makes them and if so how I could get a sample… strictly for research purposes of course)

24. Liberasm watch. Valeria Novodvorskaya: Normal Collaborationist. (Leos)