(What’s Left of) Our Economy: CNBC Interview Now On-Line, Plus Background Info & Context

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China, CNBC, Made in China 2025, North Korea, tariffs, Trade, Trade Deficits, Trump, {What's Left of) Our Economy

I’m pleased to announce that the video is now on-line of my interview yesterday on CNBC on President Trump’s new announced tariffs on imports from China. Click here to see it.

As is usually the case, though, the segment was way too short to deal with all the aspects and angles of this decision that deserve attention. So here’s some material I prepared for the segment producer at her request the night before the broadcast. Sharp-eyed RealityChek regulars will find some of these points familiar, but to me, that just goes to show that many of the questions that have surrounded Mr. Trump’s trade policies since his inauguration remain either completely unanswered, or largely unanswered – as do many of the potential pluses and minuses. These talking points are as follows: 

“1. Although the White House may announce the tariff list tomorrow, it remains far from certain that all, or any, of them will actually be imposed. The Section 301 law providing their statutory basis permits the U.S. Trade Rep’s office 30 days to put them in place after the order formally appears in the Federal Register. In addition, the President could delay the duties up to 180 more days (i.e., after the midterm elections) if he determines that significant progress is being made in trade talks with China, or that the delay would encourage such progress.

“2. Less formally, these windows could enable the President to delay the tariffs’ imposition in order to encourage China to remain cooperative on the North Korea crisis. Mr. Trump has most recently declared his determination to go ahead with the tariffs despite acknowledging China’s help vis-a-vis Kim Jong Un, but at times in the past, he’s linked decisions to ease up or postpone such tariff decisions because of China’s purportedly cooperative attitude. And on a related issue, just before his summit with Kim, he explicitly called his decision to lift the “death penalty” on China telecoms firm ZTE a favor to Chinese leader Xi Jinping.

“3. I personally believe that any linkage between China trade policy and North Korea policy would be a serious mistake, as it assumes that Beijing is helping the United States defuse tensions on the peninsula as an act of charity, rather than a course of action that is squarely in China’s interest. As a result, linkage could reward China for taking steps it would have taken anyway.

“4. The President deserves major credit for recognizing that diplomacy and engagement alone have not sufficed to stem the economic and national security threats presented by China’s wide array of predatory trade and investment policies, exemplified most recently by its Made in China 2025 programs.

“5. In particular, Mr. Trump has recognized that U.S. allies are simply not serious about making significant contributions to a multilateral effort to combat China’s trade and broader economic predation. Similarly, he understands that the WTO is completely inadequate to this task, and that unilateral American action has long been essential.

“6. But his policies can be faulted in several respects.

“a. Some of his China-related goals seem flatly contradictory. Chiefly, the President says he wants to reduce the massive bilateral trade deficit America runs with China. But he also wants China to reduce its recent harassment of U.S. and other foreign companies and make it easier for them to do business in China. If the Chinese agree on the latter, much of the increased American (and other) corporate investment in China will wind up producing goods for export to the United States, thereby increasing the deficit.

“b. Tariffs on imports from China, all else equal, could well reduce the bilateral trade imbalance – especially if China opens its markets wider to U.S. exports, too. But the impact could be limited because shipments from other countries are likely to fill the gap to some extent.

“c. In addition, Mr. Trump should be paying more attention to the makeup of the trade deficit. In this regard, he has (erroneously) indicated that he would satisfied to see stepped up American exports of farm and energy products to accomplish much and even most of the deficit-reduction goal. But it’s much more important to narrow the gap in high value manufacturing industries, which make a much greater contribution to the American economy.

“d. The President is going to remain under attack on the tariff front from industries and sectors of the economy that might suffer losses, and these criticisms could well undercut GOP candidates in the upcoming midterm elections. He will also be criticized for taking measures the increase consumer prices. He could have preempted many of these criticisms in two main ways:

“First, earlier in his term, he should have strongly backed the border adjustment tax contained in the original Republican tax bill. This measure would have in effect both imposed a 20 percent tariff on imports and given a 20 percent subsidy to American exports. And since it would have been across-the-board, it would have provided protection and subsidies for both producers of finished goods (e.g., steel- and aluminum-using industries), and of the inputs for these finished goods.

“Second, he should be doing a much better job of persuading the American people that any change as disruptive as the new trade policies he’s begun to put into effect are bound to entail some short-term costs and sacrifices, but that the long-term benefits are well worth the candle. Tweets are not nearly enough. He needs a full-court PR press – Oval Office speeches, rallies, town hall meetings, the works.”

Another important point I wasn’t able to make: It’s true that, as the anchors and the other guest maintained, most economists think that trade deficits don’t matter to the health of a national economy. But as explained in the post linked here, this claim dangerously overlooks how trade deficits, and especially their increase, inevitably worsen the quality of the economy’s growth and makeup, and weaken the foundations of sustainable prosperity.    

 

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Our So-Called Foreign Policy: The Real Trump-Kim Summit Danger

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alliances, de-nuclearization, Kim Jong Un, North Korea, nuclear weapons, Our So-Called Foreign Policy, sanctions, Trump, Trump Kim summit

I’m still skeptical about the prospects for the upcoming summit between President Trump and North Korean dictator Kim Jong Un – but not mainly for the slew of reasons trotted out by the Never Trump chattering class since this historic meeting began taking shape.

For example, it’s true that the President has little international negotiating experience. But which of the so-called experts expounding endlessly on the summit in recent weeks – especially those who worked in previous U.S. Administrations – has any record of dealing with the North Koreans that can be accurately described as anything else but abject failure? In fact, if Kim is as unconventional (to put it diplomatically) a leader as he’s commonly described, maybe Mr. Trump’s decades of dealing in the dog-eat-dog New York City real estate world will be much more useful background than anything that can be provided by CIA briefing books.

Has the President already handed North Korea an unearned, unreciprocated victory by agreeing to meet with Kim in the first place? This charge assumes that face-to-face talks with an American leader greatly adds to his North Korean counterpart’s legitimacy. But it’s hard to see how. Kim’s rule in North Korea isn’t based on any form of popular consent. Like his father and grandfather, his hold on power owes exclusively on repression. And in terms of global opinion, this indictment leaves two crucial questions unanswered. First, why on earth is Kim’s global image the slightest bit relevant to U.S.-North Korea diplomacy? And second, what thinking person would fundamentally change his or her views on Kim’s stature or record, or whatever criteria is chosen, solely, or to any extent, because he’s photographed side-by-side with a U.S. President?

Will Mr. Trump turn out to be over-anxious for success and agree to a cosmetic or outright bad deal just to boost his ego, or his domestic poll numbers – and Republicans’ chances in this fall’s midterm elections? This concern actually resembles my own principal fear, but my underlying reasons are fundamentally different (and much more coherent) than those of run-of-the-mill Trump critics. And more important, the policy conclusions I draw remain fundamentally different.

The Trump critics seem to define a bad deal as one in which the President makes concrete concessions to North Korea (say, some relaxation of economic sanctions, or the withdrawal of some U.S. military forces) in return for vague or misleading or unenforceable promises by Kim to take some steps to start dismantling his nuclear arsenal. In addition, it’s argued that if this pattern drags on, North Korea could pocket valuable gains (a stronger economy, an improved military position on the Korean peninsula, more time to make more covert progress on its nuclear program) at the expense of the United States and its South Korean and Japanese allies. And don’t forget the alarms expressed at the prospect that, if Mr. Trump concludes he’s been snookered, he’ll angrily cut off the negotiations and – much worse – his administration could resume military threats that eventually, whether intentionally or not, trigger real conflict.

The main problem with the critics’ warnings isn’t that they’re far-fetched. Indeed, they’re all too plausible. Instead, the main problem is that the bulk of the critics have urged North Korea policies that would create many of the same dangers – principally, American agreement to relax the sanctions, and/or to military steps like halting certain exercises condemned as needlessly provocative by the North but essential for maintaining readiness, in exchange for moves by Kim that would fall way short of complete, verifiable de-nuclearization.

In other words, the critics, like the over-anxious Trump of their purported nightmares, seem to be willing to live for quite some time with a North Korea that remains a formidable nuclear power, and with one that might keep on perfecting a weapon that could destroy one or more American cities in the event of a peninsular war. As I’ve explained, this arsenal, along with the ongoing presence of a U.S. tripwire military force, could easily produce a White House decision to enter a war that might result in almost unimaginable damage to the American homeland.

I’m not saying that this terrifying scenario will unfold inevitably. Nor am I completely pessimistic about the stars aligning for success over time – such as Kim’s reported determination to develop North Korea’s primitive economy (for reasons that include a self-interested calculation that more domestic prosperity is his best bet for regime survival), the Trump administration’s promise to maintain its intensified sanctions in the absence of major de-nuclearization progress, and Kim’s possible fear that the administration’s talk about preemptive or preventive war isn’t just bluster.

What I am saying is that the uncertainties are still so great, and the stakes (a nuclear attack on American soil) are so high, that it remains reckless to assume any needless risk to the nation at all. And the best way by far to eliminate needless risk from the Korea nuclear crisis, as I’ve written repeatedly, is to remove American troops from the peninsula and to allow North Korea’s neighbors to deal with its nuclear arsenal however they wish.

Such a withdrawal would remove any rational reason for Kim to attack the United States with his nuclear weapons in the event of a peninsular war. And an American threat to retaliate massively for an attack on its own territory would be almost infinitely more credible than a threat to retaliate for an attack on another country – especially if and when North Korea develops intercontinental nuclear strike capabilities.

The drawbacks of withdrawal should by now be familiar – destabilization and possibly war in East Asia, and a missed opportunity to end finally a frightening, decades-long threat to this region of big populations and economies. But the advantages – which are not nearly familiar enough because the nuclear risks of America’s alliances policies have been obscured from the public for so long – entail minimizing the chances of what would be by orders of magnitude the worst catastrophe in the country’s history. What a tragedy – and indeed scandal – that this question is still open.

Making News: Two New National Podcasts – & More!

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Akron, Breitbart News Daily, China, Kim Jong Un, Making News, NAFTA, North American Free Trade Agreement, North Korea, Ray Horner Morning Show, Sirius XM Patriot radio, The John Batchelor Show, Trade, Trump, Trump Kim summit, Voice of America, WAKR-AM

I’m pleased to announce that two podcasts of recent radio interviews are on-line.

Here’s a link to the first – my interview Wednesday night on John Batchelor’s nationally syndicated radio show on the latest phase in President Trump’s China trade policy.

And here’s a link to the second – an interview early this morning on Breitbart News Daily on Sirius XM Patriot radio on those possible new Trump auto tariffs and their impact on the effort to renegotiate the North American Free Trade Agreement (NAFTA).

Moreover, the video is now on-line of my Wednesday appearance on a Voice of America Chinese-language TV show, during which I tried to explain the Trump China policies to a Chinese audience. My English-language remarks are almost impossible to hear beneath the translator’s voice, but I thought some of you might get a kick out of this segment anyway. Click here to see it.

In addition, I was interviewed later this morning on the new North Korea nuclear crisis developments – including the on-again Trump-Kim Jong Un summit? – on the Ray Horner Morning Show on Akron, Ohio’s WAKR-AM. Unfortunately, WAKR doesn’t post many podcasts.

Even so, keep checking in with RealityChek for news of upcoming media appearances and other developments.

Our So-Called Foreign Policy: North Korea, China, & the (Inevitable) Limits of Diplomacy

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agriculture, China, commodities, diplomacy, energy, Iran, Kim Jong Un, LIbya, Made in China 2025, manufacturing, Muammar el-Qaddafi, North Korea, nuclear weapons, Our So-Called Foreign Policy, Russia, Saddam Hussein, Saudi Arabia, South Korea, tariffs, technology, Trade, trade deficit, tripwire, Trump, Ukraine

Diplomacy has sure taken a beating these last few days. And revealingly, that looks like a good thing.

Let me explain: I have no problem whatever with countries trying to resolve their differences peacefully, through dialogue and compromise. But in the nuclear age, and especially after America’s Vietnam debacle, this age-old concept has turned into a foreign policy magic bullet in the United States – including among the nation’s bipartisan globalist establishment. So the collapse (for now) of plans for a summit between President Trump and North Korean dictator Kim Jong Un, and the failure so far of the President to make any headway in curbing China’s predatory trade practices, could be welcome developments. For these developments could remind Americans of diplomacy’s limits in promoting U.S. national interests (the overriding priority of the nation’s foreign policy), and how even on crucial issues of war and peace, it can be completely pointless and even dangerously distracting.

On North Korea, there have always been strong grounds for skepticism that negotiations could achieve America’s main objective – the complete elimination of Kim Jong Un’s nuclear weapons. It’s true that Kim has appeared more interested in economic reform than his father or grandfather – who preceded him in power. Therefore, in principle, he would be more responsive to economic carrots and sticks. On the one hand, he might be amenable to surrendering his arsenal in exchange for foreign investment and aid (along with security-related concessions from the United States like formal recognition of his regime, a peace treaty ending the decades-long state of war between Pyongyang and its enemies). On the other hand, he might be more concerned about the impact of the sanctions that President Trump has both broadened and intensified.

Yet it was always difficult to believe that Kim would prize any of these considerations above his regime’s defense against overseas threats, and for these purposes, nuclear weapons are hard to beat. As widely noted, he’s surely been impressed by the gruesome fates of fellow autocrats who gave up their nuclear hopes (Libya’s Muammar el-Qaddafi) or who hadn’t the chance to develop these weapons (Iran’s Saddam Hussein).

Further, Kim also is no doubt aware of a third recent example of a country paying heavily for signing away its nuclear weapon status: Ukraine. In 1994, that nation agreed to dismantle the large nuclear force stationed on its soil when it was part of the Soviet Union, and left there after the USSR’s demise. In return, it received security promises from the United States, the United Kingdom, and Russia that its territorial integrity would be respected. A quarter century later, Moscow has seized effective control over much of the country’s eastern half.

Moreover, if a Trump-Kim summit and follow-on negotiations resulted in a compromise that left the North with some kind of nuclear arsenal, this “victory” could eventually become disastrous for America and its homeland. For there would be no guarantee that Kim would have truly abandoned his family’s goal of dominating the Korean peninsula through nuclear-aided conquest or intimidation of the South. And as long as large U.S. ground forces remained in South Korea, the outbreak of war would still threaten to draw Washington into a conflict with a foe capable of hitting its territory with nuclear warheads.

That still-live prospect should be an awfully powerful reason for switching to a strategy I’ve long advocated – ditching diplomacy, withdrawing the U.S. troops in South Korea that expose the United States to nuclear danger, and permitting North Korea’s neighbors to handle Kim and his nuclear ambitions any way they wish.

Trade diplomacy with China doesn’t threaten to turn an American city into a glowing ruin. But it’s all too likely to result in open-ended talks that do as little to combat the economic and security threats created by Beijing’s trade predation as previous negotiations involving President Trump’s predecessors. As I’ve recently written, even if his administration could come up with a coherent set of priorities, adequately verifying any Chinese compliance with U.S. positions is a pipe dream.

But this latest American attempt at trade diplomacy faces two other seemingly insuperable obstacles. First, the President’s objective of reducing the U.S.’ massive bilateral trade deficit with China appears to neglect the makeup of this deficit – which matters more than its size. Specifically, his proposals to date envision narrowing the trade gap mainly by boosting American exports of farm products and energy to China.

Both sectors of the U.S. economy are obviously important. But neither can become a major driver of sustainable American prosperity, because they’re essentially involved in producing commodities – which have never added nearly as much value to national economy as manufactures. That’s why developing countries invariably view a transition from agriculture to industry as the key to their hopes for rising living standards, and why even wealthy energy producers like Saudi Arabia have resolved to focus more on manufacturing and other higher value activities.

And P.S. – that’s no doubt why the Chinese clearly consider this American demand the most appealing on the Trump agenda.

As for the intertwined threats of continued and rampant Chinese intellectual property theft, and of China’s master plan to lead the world in a wide array of “industries of the future” (the Made in China 2025 program), U.S. tariffs on the goods and services these policies already enable Beijing to produce and export could well deal its ambitions a major blow. And clearly, that’s the Trump administration’s aim.

But if so, why negotiate over these matters? The United States has made reasonably clear what it wants China to do. And it’s declared its intent to retaliate with trade curbs if China balks. If the Trump administration is serious about this approach, and confident that it will succeed, what is there left to talk about? Either the Chinese accede (in which case, as I wrote this week, towering verification challenges would remain), or they dig in their heels and the tariffs follow.

Further talks, unless they’re simply aimed at clarifying American positions, can only muddy the waters and encourage endless Chinese foot-dragging – including regularly throwing Washington a few crumbs of market share – by telegraphing a Trump reluctance to pull the trigger. All the while, the Chinese tech prowess ostensibly alarming Americans across the political spectrum will keep growing.

And as with the case of the Korean crisis, a far better American approach would be disengagement – i.e., a series of measures aimed at reversing the disastrously wrongheaded twenty-year U.S. effort to more closely link the nation’s fate to a country with which mutually beneficial commerce was never possible. The Trump administration has already taken some important steps in this direction. Chiefly, it has greatly tightened restrictions on Chinese takeovers of economic assets in the United States. And the President’s threatened tariffs have induced some factories to move from China to the United States. But as previously indicated, the administration also seems bent on helping U.S. companies invest more in the Chinese economy, which can only further widen the trade deficit and hand China more cutting edge American technology. And it’s given no hint of a comprehensive strategy to bring manufacturing supply chains now concentrated in China back to the United States.

The latter task, in particular, will entail a long-term effort – not exactly the American governing system’s strong suit these days. And success will also depend on thoroughgoing domestic policy reform. (See this article for one sensible list.) But compared with the apparent belief that, over any policy-relevant time frame, China’s will become an economy compatible with America’s, it’s the height of realism.

Our So-Called Foreign Policy: The Trump-Kim Summit is a Spectacular – but Dangerous – Distraction

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Barack Obama, Kim Jong Un, North Korea, nuclear buildup, nuclear deterrence, Our So-Called Foreign Policy, preventive strike, South Korea, Trump

The more the circumstances surrounding the North Korea nuclear crisis change, the more they remain fundamentally the same – and that includes the dramatic recent news that President Trump and North Korean dictator Kim Jong Un have decided to hold the first ever meeting between the top leaders of the two countries presumably to energize efforts to reach some kind of negotiated solution. As a result, it’s still the case, as I’ve argued repeatedly, that America’s only sane course of action is not to plunge even more deeply into the potentially deadly affairs of this far-off peninsula. It’s to disengage, especially militarily, and let North Korea’s big, wealthy neighbors deal with Pyongyang’s nuclear forces any way they wish.

Before the historic announcement of the Trump-Kim summit – which is far from certain actually to be held – the case for U.S. disengagement was growing more compelling by the day. The North’s rapid progress toward building a nuclear-tipped missile that could strike targets in the continental United States meant that America’s decades-old strategy of deterring Northern aggression against the South had become dangerously obsolete. Before North Korea had reached this stage, this U.S. defense guarantee was risk-free for the American homeland. Because Pyongyang could pose no threat to the United States itself, Washington could even safely afford to station nearly 30,000 combat troops directly in harm’s way in South Korea literally to trap a President into using nuclear weapons to defend the South against attack from the North and its superior non-nuclear military. And precisely because of America’s nuclear weapons monopoly, the promise was supremely credible.

With that monopoly nearly gone, the tables are turning completely. Once the North gains reasonably reliable intercontinental nuclear attack capability, America’s policy will become one of risking the complete destruction of U.S. cities for the security of another country – and a relatively unimportant one at that. And since even the landing of a single warhead one such a target would create a catastrophe never even remotely approached in American history, the current U.S. strategy will become completely non-credible. Even worse, however: As long as such a large American military force remains in South Korea, a U.S. President still may have no real choice but to proceed down the nuclear road – or accept mass American military casualties inflicted by a North Korean invasion.

It’s entirely possible that the big new twist in this story could wind up bringing the United States (and South Korea and East Asia in general) the best of all possible worlds: a verifiably denuclearized North and the preservation of American security alliances that Washington has long prized (with little evidence to be sure) as guarantors of decisive American influence in this economically vibrant region. President Trump’s stance toward the North is indeed a striking contrast to the can-kicking Obama posture of “strategic patience,” and a case can be made that the new administration’s combination of stronger military threats and economic sanctions has convinced the North that its historic truculence and defiance has become too risky. In this vein, it’s also possible that, as erratically as he’s often acted, Kim is a North Korean leader with a difference – specifically, one who significantly values his country’s economic well-being and who might be willing to trade some regained access to the world economy for his nuclear arsenal.

Sadly, it’s at least as easy to make the case that Kim will never give up his nuclear weapons (because he views them as his best guarantor of survival given the United States’ recent record of miltarily deposing other despots like Iraq’s Saddam Hussein and Libya’s Muammar Qaddafi), and that a U.S. administration ardently desiring the semblance of diplomatic victory will accept a compromise that leaves at least much of Kim’s nuclear arsenal in place, that provides valuable economic support for his regime, and that leaves at least many of the American forces in harm’s way in Korea. But this outcome would simply leave the United States in the same position as today – hostage to events in a region retaining far too many powder keg characteristics, and vulnerable to entrapment in a nuclear war if its reading of Kim and his ultimate intentions isn’t largely accurate.

Alternatively, President Trump could well continue insisting on full, verifiable denuclearization by the North, end or suspend negotiations if he’s persuaded that he’s getting conned, tighten the sanctions further in the hope that they’ll ultimately push Kim to accept U.S. terms – and even resume talk of preventive attack to (try to) make sure that the North never finishes building nuclear weapons that can be used against the America’s homeland or any of its territories, or simply to coerce greater cooperation from the North. Of course, this outcome would also leave the United States in substantially the same perilous position as at present.

As a result, the only way to drive down the risk of nuclear attack from North Korea to an acceptable level – and to enable Washington to run this risk in the first place as a matter of choice and not necessity (in order to save the troops deployed in the South) – is to pull those troops out ASAP, or by some date certain.

As I’ve noted, continued nuclear progress could still bring North Korea the ability to attack the United States with these weapons. But with the United States playing no military role in his backyard, why would it do so? Moreover, although in these circumstances an American promise to defend the South with nuclear weapons lacks would lack needed credibility (because of America’s own vulnerability), an American promise to defend itself with these devices would be supremely credible.

U.S. disengagement would indeed leave North Korea’s neighbors with many of these dangerous dilemmas. But because they’re neighbors, they have far greater stakes in dealing with them successfully than the distant United States. And because they’re among the world’s leading powers (China, Japan, and Russia, as well as South Korea), they surely have ample capabilities, or at least potential, to meet the North Korea challenge.

Are they guaranteed to succeed? Absolutely not. In fact, as supporters of the U.S. policy status quo keep insisting, an American withdrawal could destabilize the region, and even trigger conflict. But the real choices facing the United States are not between the good and the bad, but between the bad and the worse. And when the worse carries any significant possibility of a nuclear attack on American soil, the call shouldn’t even be close.

Our So-Called Foreign Policy: Keeping an Eye on the North Korea Ball

Tags

alliances, Kim Jong Un, North Korea, nuclear weapons, Our So-Called Foreign Policy, South Korea, Trump

It’s all too understandable that the stunning announcement of a possible summit between President Trump and North Korean dictator Kim Jong Un has triggered a torrent of comment and speculation about a series of critical details. And they’re all important, including:

>identifying the exact preconditions;

>figuring out how to verify that North Korea is abiding by them;

>determining whether more groundwork should have been laid at lower government levels by both sides before the leaders meet in person;

>evaluating whether Pyongyang’s interest in talks differs from previous such offers;

>more specifically, assessing whether Kim’s move stems from offensive considerations (like splitting the U.S.-South Korea alliance) or defensive (seeking relief from sanctions that may be starting to bite deeply);

>mapping out a strategy for talks assuming that the summit doesn’t produce a comprehensive agreement; and deciding how to foster genuine North Korean denuclearization.

Nonetheless, none of these issues should distract American leaders from what remains their overriding priority – realizing that the North’s major progress toward developing nuclear weapons that can strike the United States has fundamentally changed America’s paramount interest in the region.

As I’ve written in many previous posts, before Pyongyang’s nuclear weapons program reached this stage, it was reasonable (though not without major dangers) for the United States to focus on deterring a North Korean conventional military attack on South Korea, and to stick tens of thousands of American troops in harm’s way on the peninsula to convince the North that any such move would trigger a devastating U.S. nuclear response. The simple reason: This strategy posed no risk to the American homeland.

Now that North Korea apparently is on the verge of being able credibly to threaten the United States with nuclear attack, America’s ongoing strategy is exposing the nation to one of the worst catastrophes imaginable, and for stakes that to me are impossible to justify – the security of a medium-sized country located halfway around the world. Unless you think Kim ultimately hopes to conquer all of East Asia, or bring it under his sway? Or even the Western Hemisphere?

That’s why I keep insisting that the only sensible move for the United States is to pull the troops out, let the wealthy, powerful countries of the region deal with North Korea however they wish, and thereby completely remove any plausible reason for Kim even to threaten nuclear weapons use against the United States, much less follow through if a conflict breaks out.

In fairness, the more serious threat evidently alarming supporters of the American policy status quo is that such a U.S. withdrawal from the scene is that Asia-Pacific countries lose faith in various U.S. defense guarantees it’s enjoyed for decades, look to China to rein in Kim and maintain peace and stability in the region, and let China write the rules for doing business in this economically dynamic area in ways that largely shut out America.

The obvious rejoinders are:

>It’s already excruciatingly difficult for many American companies and entire industries to compete satisfactorily in the region’s often highly protectionist economies – indeed, for decades, Washington has permitted these inequities to persist precisely out of the (bizarre) fear that pressing for genuinely free trade would antagonize these allies and protectorates; 

>whoever sets the framework for trade and other forms of commerce the region, most of its economies will need to access the U.S. market to sustain the exports that have fueled so much of their growth. So (as always) Washington will have all the leverage it needs in economic diplomacy, and will simply need to start using it; and

>however important economic interests are (and I’d be the last to belittle them), it’s unimaginable that, if the security of the entire nation is not at risk in a given situation (which it clearly need not be in the current Korean crisis), any American objectives even begin to compare with the imperative of preventing the nuclear destruction of any major U.S. cities. And if crucial American economic interests can only be protected satisfactorily by courting such nuclear risks, then the country urgently needs a new approach to economics and business.

Incidentally, the one aspect of the apparent (and we need to underscore the continuing uncertainties here) terms under which the summit will take place that deserves greater attention has to do with the seeming North Korean pledge to halt missile testing. I’ve worried that the summit and any subsequent talks could proceed while enabling the North to continue perfecting its nuclear capabilities. For example, despite North Korea’s apparent promise to halt all nuclear-related tests, it doesn’t seem possible to verify that Kim’s scientists have stopped trying to master challenges such as affixing a miniaturized nuclear warhead onto a missile (though reportedly, American intelligence officials believe they’re pretty darned close).

But a missile test freeze at this time does seem especially valuable, given how close Pyongyang appears to be to being able to deliver these weapons across oceans. More such testing is absolutely essential to creating a weapon that could accomplish this goal with high confidence, which presumably (though with North Korea, you never know) Kim would desperately want in a crisis. And verifying a test freeze is pretty easy. The missiles either come out of their silos or they don’t.

So since that’s the North Korea capability that the United States needs most to worry about by far, Pyongyang’s apparent commitment on this front could buy America valuable time. Nonetheless, nuclear risk would remain for the United States, and for reasons that no one taking seriously the principle of “America First” – or anyone other American with their head screwed on right – should tolerate. As a result, I’d still much rather wash America’s hands of this mess and let the locals deal with it.

Our So-Called Foreign Policy: Why America’s Alliance Strategy Can’t Have it All

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alliances, allies, burden sharing, China, defense spending, Financial Times, Germany, James Mattis, Japan, NATO, North Atlantic treaty Organization, North Korea, nuclear war, Our So-Called Foreign Policy, Russia, smothering, South Korea, Trump

Decades ago (literally!) I came up with an insight that’s stood the test of time pretty well. When my main professional focus was American foreign policy, I began realizing that the best way to describe the U.S. approach to its major security alliances with East Asian and European countries was to call it a “smothering strategy.” That is, American leaders were trying not only to protect Japan and Western Europe specifically from communist aggression. They were also trying to make sure that those critical regions never exploded into major war again – and principally, that Germany and Japan never resumed their roles as aggressors.

The characteristic U.S. solution? Washington would try to smother these German and Japanese impulses by removing their need to conduct any kind of independent foreign policies of their own in the first place. That’s why the United States pledged to take care of both their national security interests (with dangerous nuclear defense commitments) and their economic interests (by opening its economy much wider to their exports than vice versa). As a result, for decades, Germans (and other Europeans) and Japanese could avoid the expenses of maintaining big military establishments and concentrate tightly on the peacetime pursuits of life, liberty, the pursuit of happiness – not to mention building great wealth.

How good was this insight? To me, the proof of the pudding was America’s determination to preserve these alliances almost unchanged even after the Cold War ended, the Soviet Union disappeared, and China had not yet launched a drive to boost its influence in East Asia. To put it bluntly, U.S. leaders were still terrified that, if they were forced to face the world on their own once more, the Germans and Japanese would go bonkers again.

But this past week came some evidence that the smothering strategy is still firmly in place – despite the election of an American President who has complained loudly as a candidate as well as in office about how these arrangements are inexcusable rip-offs of the American public and especially taxpayers. At a big national security conference held each year in Germany, Trump administration officials expressed alarm at the prospect that some European initiatives to boost military spending that have barely advanced past the talking stage could might result in European forces at least sometime operating independently of their alliance with the United States – the North Atlantic Treaty Organization (NATO) – and even excluding America.

According to a Financial Times account of the meeting, U.S. Defense Secretary James Mattis reacted by insisting that these European Union “defence plans…enhance Nato’s common defence rather than detract from it. And he put down an important marker: there was, he said, a clear understanding that common defence is a Nato mission that belongs to Nato ‘alone’.”

In other words, the Trump administration has now fallen into both of the traps that ensnared U.S. alliance policy during the Cold War. It has assured the allies that its commitment to their defense is absolute – including the risk of fighting a nuclear war on their behalf – thereby gutting any incentives for them to stop “free riding” on the United States militarily and bearing a greater share of the defense burden. And it has made clear that, although it wants the allies to assume more responsibilities for their own defense, it opposes the allies gaining any more control over their own defense. Instead, the United States must remain firmly in charge.

As a foreign policy realist, who believes that national interests are much more important than particular alliances, and can clash with the preservation of these alliances, I don’t blame the Trump-ers for wanting to have their cake and eat it, too on this score – i.e., more allied resources to use as Washington wishes. Nor do I blame the Europeans for wanting as much defense assistance from Americans as they can get while continuing to skimp on their military budgets.

But as an American, I wish the administration would recognize two fatal flaws in this alliance strategy status quo. The first is the un-realism of straining to freeze alliance structures in place when the common enemy that represented their raison d’etre has been gone for nearly thirty years. The second entails the needless dangers created by continuing to provide nuclear guarantees – and the tripwire forces needed to draw it into Armageddon – for these allies when not even the partial revival of Russian and Chinese threats (along with North Korea’s development of ever more advanced nuclear weapons) has fostered consensus in how to handle them.

Of course, dissolving these alliances will entail risks. But the risks of trying to square these circles look far greater. And when considering the nuclear threats they now pose (from those North Korean as well as Chinese forces that are much more capable of credibly threatening the United States with nuclear attack, along with Russia’s Cold War holdover arsenal), they look harder to justify than ever.

Our So-Called Foreign Policy: More Upside-Down U.S. Thinking on the Korea Crisis

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alliances, allies, globalism, North Korea, nuclear war, Our So-Called Foreign Policy, South Korea, The Wall Street Journal, tripwire, Trump, Walter Russell Mead, Winter Olympics

It was great to see earlier this month that Walter Russell Mead was chosen by The Wall Street Journal to be its regular foreign affairs columnist. Mead has often (though not always) been an important voice for a broadly realist approach to American foreign policy (meaning one that understands the need to set at least some finite priorities because not all good things are possible simultaneously). He’s also been a serious and insightful student of U.S. diplomatic history. Therefore, his new position seemed to guarantee that some badly needed diversity would be added to a Mainstream Media pundits lineup that has long been completely dominated by globalists of the left and right. (The Journal has specialized in the latter.)

That’s why it was so disappointing to see that in his recent, second Journal offering, Mead has lapsed into the thoroughly bizarre (but characteristic) globalist habit of viewing America’s security alliances as mattering more to the United States than to the allies.

The passage in question comes about a third of the way in. According to Mead, the real diplomatic winner of the current Winter Olympics in South Korea is not, as widely reported, Kim Yo Jong, the visiting sister of North Korean dictator Kim Jong Un. Instead, it was South Korean President Moon Jae In. That’s a perfectly reasonable conclusion. So was the first part of Mead’s explanation: “Mr. Moon got a political boost from Ms. Kim’s visit and the appearance of a thaw between the Koreas, but he avoided the backlash from appearing naive or overeager.”

It’s the second part of the author’s analysis that has gone off the deep end: Moon “also reminded the Americans that South Korea cannot be taken for granted; without Seoul’s support, the Trump administration’s North Korea policy is unsustainable.”

Actually, in a narrow sense, Mead makes a novel and (disturbingly) convincing case for this proposition: The campaign to force North Korea to the nuclear bargaining table

“has been Mr. Trump’s most effective diplomatic and political effort to date. The administration has moved B-1 bombers and F-35 fighters to the Korean Peninsula during annual military exercises. It has reached out diplomatically to countries ranging from China to Indonesia. It has coordinated speeches by officials at the Pentagon, State Department and White House to keep the government on message.

“This is the sort of orchestration that the Trump administration, and the president in particular, is supposed to be too undisciplined to carry out. The relative success of the North Korea process suggests that Mr. Trump and his staff may be more capable than critics expected in operating the complex machinery of American power.”

It’s certainly possible that, at least in an unwitting way, the President and his aides place precisely this value on their North Korea strategy. But if so, the administration would be prizing image-making over elements of strategy that are not only fundamental, but existential – and needlessly exposing the United States to the risk of nuclear attack in the process.

For even if the Trump-ers are clinging to the appearance of success or competence in their North Korea policy, the overriding reality is that American power right now is the only obstacle currently blocking a North Korean military conquest of the South, or a South Korean future dominated by endless blackmail from the militarily superior North.

Consequently, although a successful American North Korea strategy could burnish the Trump administration’s resume, and possibly shore up its domestic political support, for South Korea, it’s literally a matter of national survival at worst and of genuine independence at best.

Unfortunately, moreover, Mead’s column also explicitly makes the broader and completely ludicrous globalist argument that allies like South Korea enjoy at least as much leverage in these relationships as the United States. And as a result, he too overlooks the yawning asymmetry in the respective sets of national interests involved.

Hence his contention that crucial to any diplomatic effort to denuclearize North Korea is “the need to keep America’s alliances united. The Winter Olympics kerfuffle should remind the White House that maintaining coordinated policies with Mr. Moon will be vital in the months and years to come.”

Far more important to recognize, however – and especially given the emergence of nuclear risk to the U.S. homeland – is that by virtue of geography and military power, the United States boasts inherent options in the Korean crisis that South Korea lacks. And the principal such option is washing the nation’s hands of this entire mess.

So if any party to this relationship needs to avoid taking the other for granted, it’s South Korea. All the more so because, as I’ve written, the “tripwire” mission of U.S. forces in South Korea aims to ensure that, in the event of war, Washington comes to the South’s rescue with nuclear weapons – and before too long could thereby trigger a successful North Korean nuclear strike on an American city.

That’s not to say that South Korea lacks the right to take the lead in Korean Peninsula diplomacy, or any legitimate interests in doing so. It merits exactly these rights and interests, precisely because no country outside the peninsula has remotely comparable stakes in a peaceful resolution.

But by the same token, the United States has the right to insist that any country expecting America to run catastrophic risk on its behalf pay a price in the form of deferring to its judgment. And for the sake of the American people’s security, their leaders have an overriding obligation to remind such allies that, if they’re unhappy with these terms, they will be more than welcome to handle whatever threats they face on their own.

Im-Politic: A Neglected Russia Disinformation Objective?

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2016 election, Barack Obama, Central Intelligence Agency, China, CIA, CNN, collusion, cybersecurity, Director of National Intelligence, disinformation, fake news, Im-Politic, intelligence community, James R. Clapper, John O. Brennan, Matthew Rosenberg, MSNBC, NBC, North Korea, Putin, Russia, The New York Times, Trump

Well then. Two passages in a New York Times article from this morning’s print edition were sure conversation-stoppers when it comes to the ongoing uproar about charges that President Trump’s 2016 presidential campaign colluded with Russia to boost his election odds and ensure soft treatment from his administration. That is, if you read far enough into the long piece to encounter them. In fact, they’re so important that they should have been the main angle – or at the very least, the main theme of front-page stories from now until we ever find out what’s really happened.

The passages (which make the same critical point):

First, according to Times reporter Matthew Rosenberg, by some point last September (at the latest), American intelligence officials were worried that Russia had developed an “operation to create discord inside the American government.”

Second, and more specifically, the intelligence agencies viewed one key part of this operation as feeding information suggesting that Vladimir Putin’s regime could blackmail the President (and/or the candidate) to “United States intelligence agencies and pit them against Mr. Trump.”

And here, in Rosenberg’s words, is the context:

“American intelligence agencies believe that Russia’s spy services see the deep political divisions in the United States as a fresh opportunity to inflame partisan tensions. Russian hackers are targeting American voting databases ahead of the midterm election this year, they said, and using bot armies to promote partisan causes on social media. The Russians are also particularly eager to cast doubt on the federal and congressional investigations into the Russian meddling, American intelligence officials said.

“Part of that effort, the officials said, appears to be trying to spread information that hews closely to unsubstantiated reports about Mr. Trump’s dealings in Russia, including [a] purported video [depicting him in compromising sexual situations], whose existence Mr. Trump has repeatedly dismissed.”

In plainer English, if Rosenberg has it right, the Russians have not only been trying to put Mr. Trump over a barrel and make sure that he defeated his main rival, Democrat Hillary Clinton. They have not only been trying to shake Americans’ confidence in their democratic institutions by hacking into them and unleashing a flood of fake news onto its media platforms, social and conventional. They have not only been trying to cover their tracks by using such fake news and other tactics to discredit the Congressional investigations into election meddling and related reported outrages.

They have also – separately – been trying to whip up antagonism between the President and the intelligence community. Achieving this goal of course would both tend to hamper America’s own intelligence operations and broader foreign and national security policies, as well as undermine the nation’s political system and its underlying social and cultural unity. And the tumult engulfing the capital and the nation as a whole suggests that the Russians are succeeding with this disinformation campaign, and that the intelligence agencies are playing their hoped for role.

Not that this possibility lets Mr. Trump and his aides totally, or mainly, or partly off the hook when it comes to their Russia ties either before or after his election.  For this objective could well have been sought on top of an effort to turn Mr. Trump into a Manchurian Candidate and President, not instead of it. But it does raise the question of how many of the allegations have stemmed from simple, and completely fictitious, plants.

Something else noteworthy about this article: If it’s accurate, then the potentially disastrous loss of America’s cyber-weapons to Russia and perhaps other adversaries that keyed Rosenberg’s piece was just the latest disclosed possibly catastrophic intelligence failures that occurred during Barack Obama’s presidency, and on the watches of the former intelligence agency chiefs, like his Director of National Intelligence (the complex’s top job) James R. Clapper, and one of his Central Intelligence Agency (CIA) Director John O. Brennan – both of whom have been particularly sharp Trump critics.

Two others? China’s penetration of the CIA’s operations in the People’s Republic, which reportedly resulted in the assassination or capture of “more than a dozen sources” (according to press accounts, the breach began in 2010, under Brennan’s predecessor, former General David Petraeus) and the failure to anticipate the speed of North Korea’s nuclear weapons development (which can be laid directly at Clapper’s feet, and which Brennan apparently missed as well).

Clapper, incidentally, is now a “national security analyst” for CNN. Brennan has just joined NBC and MSNBC in the same capacity. Good luck to you if you think there’s any chance these networks’ weekend talk shows tomorrow will raise any of this, including the Rosenberg article, with them?

Our So-Called Foreign Policy: Desperately Needed Common Sense About North Korea and Asia

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alliances, Asia, Australia, China, deterrence, Hugh White, Indo-Pacific, National Security Strategy, North Korea, nuclear weapons, Our So-Called Foreign Policy, Trade, Trump

How nice it would be if the United States had, like forever, or even close, to figure out how to resolve the North Korea crisis safely and peacefully. That’s far from the case, of course, which is why I found this recent Bloomberg interview with a noted Australian strategist so bittersweet to read.

One the one hand, although he didn’t address the scary situation on the Korean peninsula created by the Pyongyang regime’s progress in building nuclear weapons that can strike the American homeland, this strategist did join me in asking the key question that American leaders have so irresponsibly ignored at least since the Cold War came to an end. On the other hand, it’s awfully late in the game, and official Washington is still in evasion mode.

The big question broached by Hugh White, a former top adviser to the Australian government and leading writer on Asian security affairs: Whether it should be a top American priority to preserve its decades-long position as East Asia’s leading power against a steadily intensifying challenge from China.

For all its alleged and even sometime stated determination to disrupt the central assumptions underlying U.S. foreign policy since not only the Cold War but even the end of World War II, the Trump administration has answered this question with an emphatic “Yes.” According to its National Security Strategy document, released last December, the Asia-Pacific region (which it now calls the “Indo-Pacific,” in order to emphasize India’s importance in achieving U.S. aims:

“The region, which stretches from the west coast of India to the western shores of the United States, represents the most populous and economically dynamic part of the world. The U.S. interest in a free and open Indo-Pacific extends back to the earliest days of our republic.” And for good measure, it discusses American policy in this area before it turns to Europe.

The document also explicitly states that the main challenge to this freedom and openness so long prized by the United States comes from Beijing. China is accused of “using economic inducements and penalties, influence operations, and implied military threats to persuade other states to heed its political and security agenda” and of mounting “a rapid military modernization campaign designed to limit U.S. access to the region and provide China a freer hand there.”

And the President himself has insisted that America’s alliance with South Korea – and the need to protect it from its northern neighbor despite the growing nuclear threat to the United States – “is more important than ever to peace and security on the Korean Peninsula and across the Indo-Pacific region.”

As I’ve repeatedly written, I completely disagree – especially given not only the quantum leap in the North Korean nuclear threat, but China’s impressively growing nuclear capabilities as well (which of course mean that the U.S.’ determination to keep the South China Sea free of Chinese control has become much more dangerous, too). So it is more than high time for American leaders to fall out of love with diplomatic boilerplate and start asking themselves what possible benefits – whether in the national security or economic fields – can possibly compete with the risk of nuclear warheads landing on American soil.

Because White is a big name in the field, it’s encouraging to see him making a point like this – which directly clashes with the conventional wisdom that the United States would face disaster if China gained the ability to set the framework for doing business in the Indo-Pacific, or whatever you want to call it. If China prevailed, White told a journalist this past week:

“Of course America will remain a major economic player globally, and in Asia, for as far ahead as we can see….Its position will be like that of the Europeans, who trade and invest massively in Asia without any real strategic presence there.

“Of course, that will mean that America will have to engage economically within the terms set by a regional strategic order led by others — presumably by China. That won’t be ideal for America, but it would be better than the alternative, if the alternative is to confront China in a bitter all-out contest for regional leadership in which China enjoys many asymmetric advantages. A contest like that would most likely be much more damaging to America economically than accepting the rules in Asia as set by China.”:

For the record, I can’t imagine that even a U.S. military withdrawal from East Asia would result in China “writing the economic rules” for the simple reason that the United States would remain such a supremely important market for the region’s economies – which remain heavily dependent on racking up export sales and trade surpluses for their growth. Indeed, given the massive deficits America keeps amassing with these same countries, and the towering trade barriers maintained by allies like Japan and South Korea, it’s hard to understand the argument that the U.S. military presence has created any net benefits for the American economy at all during any period.

But White’s point about possible economic losses paling before potential security disasters is of paramount importance – precisely because the threats now posed by American adversaries are nuclear in nature.  And this development makes the case for an American military pullback even more compelling. That’s why we should all hope like heck that someone with some influence on the Trump administration reads these statements by White. The stakes of getting U.S. Asia policy right are rapidly approaching the life and death zone for millions of Americans..