Gaza Goes Back to Square One

Photo of Gaza with destroyed buildings

Israel has resumed military operations in Gaza, so any ceasefire or hostage deal that was on the table can be kissed goodbye.

The humanitarian crisis in Gaza has worsened; much of the housing has been destroyed, food supplies remain critical, and supply chains have been disrupted. Given these conditions and the dense urban area that Hamas operates in, it will continue to have a stream of new recruits that will make elimination a near-impossible task.

Here at Zeihan on Geopolitics, our chosen charity partner is MedShare. They provide emergency medical services to communities in need, with a very heavy emphasis on locations facing acute crises. Medshare operates right in the thick of it, so we can be sure that every cent of our donation is not simply going directly to where help is needed most, but our donations serve as a force multiplier for a system already in existence.

For those who would like to donate directly to MedShare or to learn more about their efforts, you can click this link.

Transcript

Hello from Vegas. Just a real quick one today. Earlier this week, the Israelis, went back into Gaza. So we’ve had multiple hundreds of strikes and basically full military operations that began again. And so the, the peace for hostages deal that may have been kind of, sort of in place is clearly gone now. And anyone who’s interested in negotiating a ceasefire or a truce is just going to have to start from scratch. 

Unfortunately. Fortunately, I words are kind of insufficient. Most of the population had tried to return to their homes, only 

discover that, two thirds of the housing stock has been destroyed. And keep in mind that it takes about a thousand trucks a day coming in with food aid in order to keep the population alive. And that at a time when the greenhouses were working, which they no longer are. 

So we’re once again right back into the humanitarian catastrophe. And if you are Israel, we are once again right back into the situation where Hamas is strong. Keep in mind that you’ve got over 2 million people living in an open air prison camp with absolutely no prospects. You can’t get out of the, Gaza Strip. Unless the Israelis specifically allow you almost on a case by case basis. 

And because of that, you’re basically just in this cauldron. It’s a horrible way to live. And it makes it very, very easy for militant groups like Hamas to recruit. So if you think of all the big successes that Israel has had recently, they gutted Hezbollah with a brilliant, long term intelligence operations where they blew up cell phones. 

They’ve gutted the, Lebanese government. The Syrian government has fallen, and with airstrikes, they basically removed all the heavy equipment that Syria has built up over the last 60 years. And Iran is on the back foot throughout the entire region. But Hamas is different because it’s basically in an urban zone and doing door to door clearing of an urban zone, especially when you can tunnel under it is just an order of magnitude more difficult. 

It’s not that Israel’s been unwilling to put the men in the materials to the work to try to root out Hamas. It’s just that as long as there’s 2.3 million people there, Hamas will always, always, always, always be able to recruit more. 

And unfortunately, that just means that a conflict like this doesn’t have an end. It’s just a question of what minimum tolerance the Israelis are willing to put up with in terms of violence. And it appears, at least for this government, that means keeping troops on the ground and active military operations for the foreseeable future.

Going Nuclear + Live Q&A Announcement

Photo of a nuclear mushroom cloud

Our next Live Q&A on Patreon is here! On April 9, Peter will join the Analyst members on Patreon for question time! In order to get in on the fun, join the ‘Analyst tier’ on Patreon before April 9.

You can join the Patreon page by clicking here

As the Trump administration shifts US foreign policy, several countries are taking notice of the rising global instability. It looks like the nuclear question is getting thrown around by quite a few of those countries.

The US cancelled defense talks with South Korea following the (Korean) president’s impeachment. As a result, the South Koreans are now revisiting policies that would allow them to develop nuclear weapons, quickly. However, Seoul isn’t the only place these discussions are happening.

Feeling the US can no longer be relied upon for protection, places like Ukraine, Poland, Germany, Sweden, Finland, Romania, Japan, and Taiwan are all considering nuclear armament in varying degrees. This strays from the long-standing policy where the US would provide security in exchange for control over global defense policies.

With large scale nuclear proliferation now on the table, the risk of conflict (and use of these weapons) will grow. And more shiny, red buttons isn’t quite what the world needs right now.

Here at Zeihan on Geopolitics, our chosen charity partner is MedShare. They provide emergency medical services to communities in need, with a very heavy emphasis on locations facing acute crises. Medshare operates right in the thick of it, so we can be sure that every cent of our donation is not simply going directly to where help is needed most, but our donations serve as a force multiplier for a system already in existence.

For those who would like to donate directly to MedShare or to learn more about their efforts, you can click this link.

Transcript

Hey everybody. Peter Zeihan here coming to you from the Home Office. Apologize for being inside, but there’s 70 mile an hour winds outside, and recording is just not possible. Today is the 17th of March, and the news is that American Defense Secretary Pete Hegseth just canceled defense talks with the South Koreans. He had a really good reason for doing it. 

The South Koreans functionally don’t have a government right now. The former president was impeached, currently out on bail, which just feels weird linking those words together. And they haven’t had new elections yet, so there really is no one of authority to speak to about really deep strategic issues. And there is a very deep strategic issue that needs to be discussed. 

The South Koreans have been looking at what the Trump administration has been doing with Ukraine and the European allies and even badmouthing, the Japanese of late. And they are coming to the unfortunate conclusion that they are going to have to go it alone on their defense policy. Now, South Korean military forces have basically been under this American umbrella, not just in terms of actual security protection, but actually leadership since the Cold War. 

If a War were to break out, and the North Koreans were to invade South Korea, technically the entire South Korean military is under American command, even though there’s only about 30, 35,000 American troops on the peninsula, compared to, you know, ten times that for South Koreans. In addition, the South Koreans are one of the few countries that by Donald Trump standards have actually met their defense procurement goals over the course of this last several decades, typically spending more than 3 to 3.5% on defense the entire time, which is kind of the range that Donald Trump until recently said we were supposed to be in. 

And at the moment, the Trump administration hasn’t really bad mouth the South Koreans in any way, like they have the Germans or the Italians or the Brits or the French or the Ukrainians or the, you know, it’s a long list give you the point. Anyway, the South Koreans see the reading, writing on the wall because they realize they are not what you would call a major ally. 

The South Koreans are not capable of deploying forces really outside of their theater. And so they are definitely in the category of defense consumer. Regardless of how much of the week they try to shoulder themselves. And their concern is if the Trump administration just turns his eyes to them. But it’s just a matter of time before the United States moves on. 

And so they are dusting off the policies from the 60s, 70s and 80s that would allow them to do a sprint to a nuclear weapon. In a matter of weeks, if not decades. And this has earned them the labor by the United States of sensitive energy country, meaning that they are no longer a complete non concern when it comes to nuclear proliferation. 

But now something where it’s on the radar and that’s exactly where they should be, and having a discussion at the very top level between the Americans and the South Koreans on what can and would and should happen under all these scenarios is exactly what needs to happen. 

But there’s no one to have that conversation takes up at the moment. So delay, South Korea is hardly the only country that is going to be in this bucket. We have a number of other countries who are concerned about what the United States is doing, and realize that they need to, or coming to the conclusion that they need to come up with their own defense plans. 

And one of the things you have to consider if you haven’t had a sufficiently strong conventional force for a while, you know, like South Korea has, building up this conventional forces takes years, if not decades. So can they be American general staff situation is 50 years in the making. Aircraft carriers, from the point that you decide that you want to do it, you go through the design, you go to the current, you go through manufacturing, and then finally field testing. 

You know, you have the 20 to 25 year process. Considering the speed at which things are unraveling in Europe, most countries just don’t have that sort of time. And so countries who want to actually look out for themselves, they can’t really rely on conventional forces in the short or medium term, which raises the question of nuclear weapons. The country that is, of course, under the greatest pressure is Ukraine. 

And we’re supposed to have a conversation very soon between Donald Trump and Vladimir Putin of Russia, which will give some indication just how much Ukrainian territory, the Americans are willing to sacrifice in order to achieve a peace deal. But keep in mind that there are multiple nuclear power reactors in Ukraine. And Ukraine used to be where all the brains of the Soviet military industrial complex used to be on nuke issues, on aircraft issues, and on missile issues. 

So the idea that the Ukrainians, when under pressure can’t go nuclear is silly. Next slide of countries in that are already publicly discussing who, where and how to get the nukes. Poland’s at the top of that list. They’ve actively asked the United States to deploy nuclear weapons to their soil, and that has gotten broadly rebuffed. And so now they’re discussing what they need to do to get their own, the road for Poland will be a little bit longer. 

They don’t have a native nuclear industry, but their manufacturing capacity is robust. All they have to do is get the nuclear material and they’d be off to the races. It would probably take them 3 to 9 months in order to get a functional weapon, not an explosive device. They could probably do that in the weeks, but the actual deliverable weapon, probably within 3 to 9 months, the next country up is the one that I am, of course, most worried about. 

That’s Germany. They’re having the discussion. Not should we get nukes? But how should we get nukes? Option one is to partner up with the French and pay money to the French, so that the French nuclear deterrent, which has existed since the 50s, also covers Germany. But at the end of the day, the French are the ones who would control that arsenal and whether or not it should be used or not. 

And so the other option is for the Germans to get as close to the threshold as they possibly can get experience in doing the milling in order to make the warheads enriching uranium with the plutonium. And again, they have a nuclear industry so they can do this themselves, and the idea that the Germans could not put into the device into a deliverable weapon system. 

The Germans have been arms manufacturers for a very long time. That would not be a challenge. In between, look to Sweden and Finland. Here are two countries that, like Ukraine, already have an indigenous nuclear civilian fleet. And the Swedes, like the Germans, already have an indigenous, robust military system, for contracting and manufacture. Both of them are openly discussing these options. 

And if they do decide to pull the trigger, both of them would have a deliverable weapon in under a month. Rounding out the list in Europe, look to Romania. Like the Ukrainians, they have a nuclear industry. However, the weapon systems are subpar and pretty much all important. So they could get a device, use it as a failsafe. 

But getting the deliverable system would be, probably a bridge too far. And anything less than a 12 month timeframe. But it’s a lot faster than doubling the size of your army. Over in East Asia, in addition to the Koreans, the two countries to watch, obviously, are Japan and Taiwan. Both have a arms industry. Both have the materials. 

Both have plenty of scientists and engineers who have experience with both. You just have to marry the two together. It’s just a question of how many funds they decide to put behind it. And in the case of Taiwan, if they really did feel that the Americans were leaving, well, they really don’t have any option but to get nukes. 

And while the Japanese Navy may be much more powerful in terms of reach in the Chinese Navy, the home islands are within range of a lot of Chinese weapons systems. And so if there was a war, I don’t doubt who would win in the end because the Japanese could choke off the Chinese mainland. But the damage could be extreme. 

About the only way to mitigate the risk there is deterrence. And that means nukes. So they’re we’re talking about eight countries that are likely to pick up nukes in the not too distant future, based on how American policy unfolds in the next several weeks to months. Something the Trump administration is learning is something that every administration before it has learned it, including the first Trump administration, is that if you want to write everyone’s security policies, you have to give them something. 

And during the Cold War, and until very recently, it was a guns for butter trade, the US would protect global sea lanes so that anyone could trade with anyone at any time. And in exchange, the allies allowed Washington to write their security policies. What the Trump administration is doing is not just breaking that deal, but saying that we’re not going to protect your trade. 

You are on your own, but you’re also on your own for defense. And that forces all of these countries to take matters into their own hands. And if they do that, the United States loses the ability to say what can and cannot happen with weapons systems. And that leads to a world with a lot more nukes. And it a much, much, much higher likelihood of actually having a weapons exchange.

The Ukraine War Ceasefire

Photo of Ukrainian soldier in front of flag

Here’s a quick update on what’s going on in the Ukraine War and the discussions of a potential ceasefire.

Ukrainian forces had to withdraw from Kursk following a Russian assault. This was conveniently timed during the US intelligence blackout. Ukraine lost plenty of equipment and were on the receiving end of some new Russian drone tactics.

Trump has been spewing some more Russian propaganda, like 10,000 Ukrainians being trapped (which had already been debunked). So, he’s either getting bad/tainted info or he’s just naive. This erratic behavior will continue to plague this administration and negatively impact US strategy.

What about the ceasefire? Well, the initial agreement broke within hours. Putin’s demands are absurd and would effectively dismantle Ukraine’s military. So, not much movement there…

Here at Zeihan on Geopolitics, our chosen charity partner is MedShare. They provide emergency medical services to communities in need, with a very heavy emphasis on locations facing acute crises. Medshare operates right in the thick of it, so we can be sure that every cent of our donation is not simply going directly to where help is needed most, but our donations serve as a force multiplier for a system already in existence.

For those who would like to donate directly to MedShare or to learn more about their efforts, you can click this link.

Transcript

Hey all, just a quick update from Vegas on what’s going on with the Ukraine war. Two things. Number one, the Ukrainians are definitely being kicked out of their position in Kursk. That’s the chunk of Russian territory that they invaded over the summer in order to get negotiating. Chip. During the American Intel and weapons blackout, the Russians were able to launch a multi vectored assault. 

They basically relocated over 100,000 troops and basically hit the Ukrainians from all positions at a time when the Ukrainians couldn’t see them coming because of the lack of the Intel from the United States. The Ukrainians did manage to get their people out, but lost a lot of gear along the way. The Ukrainians, found themselves facing some new drone tactics from the Russians specifically. 

The, Russians would fly in dozens of drones and then park most of them near the roads, wait for something to come by that they could pick up from, say, airborne reconnaissance and then activate the drones and swarm in. So casualties were not light. And a lot of equipment was destroyed, especially softer things like ambulances and pickup trucks and vans. 

Even a couple of tanks were abandoned. But most of the troops got out. Which brings us to number two. The degree to which that Donald Trump personally has been caught up in Russian propaganda is really robust, because while this attack was going on in Kursk, the Russians, in order to communicate to their own people how wonderfully the war was going, were releasing, things were just not backed up like facts. 

Specifically the idea that somewhere around 10,000 Ukrainians had been caught in what they call a cauldron and cut off from other forces. And in a cauldron that you can push in from whatever direction you want because there’s no retreat. Well, that did not happen. Ever. In fact, when Trump was repeating, these things on his truth social post, all the Ukrainians are had already been out of Kursk, or at least the dangerous part of Kursk for 48 hours. 

So just basic information from the American military, the American intelligence stuff is not reaching Trump, and he’s just spouting out whatever he’s being told by the Russians. Now, who specifically the vector was for sharing that information with Trump? I don’t know. It could have been Putin himself, could have been, someone with the administration who has basically been compromised. 

Could be somebody who’s just really, really stupid and has fallen for it. You know, all three of these, unfortunately, are options. But held true. And then most importantly, yesterday, the 18th of March, we had a one on one phone call between Putin and Trump that lasted about 90 minutes, where Trump tried to convince Putin to adopt a cease fire. 

And Putin’s position is that he would do a partial cease fire that involved things like, not attacking energy infrastructure. He violated that less than three hours after the phone call. And he said that for real? Cease fire again, 30 day cease fire. What he expected was an end to all Western weapons transfers to Ukraine, and then to all intelligence support to Ukraine, and an end to all military recruiting within Ukraine to set the stage for the complete dissolution of the Ukrainian armed forces, and this for a 30 day cease fire. 

It’s obvious to anyone who is familiar with this conflict, or anyone who is familiar with nouns, that Putin is not interested in a cease fire unless he gets everything he wants on Ukraine. Long run. And that means the dissolution of the state. Trump seems to be, at the moment, not ready to accept that that is the situation. 

It doesn’t mean he won’t. But with Russian influence in his administration so robust, just getting basic information and accurate information to the president is clearly become a challenge. But we can’t rule out that at some point that, the Trump administration will treat Russia like it’s a real threat, like it’s Canada. And should that happen, you know, everything is up in the air. 

 This is the most erratic American, administration we have ever had. And its strategic decision making is clearly hobbled by the fact that it’s compromised, in terms of intelligence. But when you’re dealing with somebody who is that erratic and is just at the top of a system that is so unstable, things can change in a heartbeat. 

 So I don’t want to say boo, and I don’t want to say yay. I just want to say that this is a very dynamic political process, and it all depends upon the mood of one person. And that person’s mood is famously volatile.

Fentanyl Isn’t as Lethal…What Happened?

DEA photo of fentanyl on a pencil tip

How about some positive news to start your day? A study was just released showing that fentanyl deaths in the US peaked in 2022 or early 2023 and have been declining since.

The decline in fatalities can be attributed to a few factors: less potent doses, fewer users, safer consumption methods, and more widespread availability of Narcan (Naloxone). Despite these improvements, this crisis is far from over; the ease with which Fentanyl can be produced makes it a sustained priority for the US.

Regardless, I’ll take my good news where I can get it, especially when it comes to the drug epidemic.

Here at Zeihan on Geopolitics, our chosen charity partner is MedShare. They provide emergency medical services to communities in need, with a very heavy emphasis on locations facing acute crises. Medshare operates right in the thick of it, so we can be sure that every cent of our donation is not simply going directly to where help is needed most, but our donations serve as a force multiplier for a system already in existence.

For those who would like to donate directly to MedShare or to learn more about their efforts, you can click this link.

Transcript

Peter Zeihan here coming to you from Orlando with some good news. The good news is not that I am in Orlando. It’s that the University of North Carolina in Chapel Hill has recently released a report that pulls together all the statistics from all the health authorities in the United States. And according to the data, at some point in 2022 or early 2023. 

Fentanyl deaths peaked and have been falling dramatically since then, about one third down on average across the country and in North Carolina, specifically down more than half. This is like the first good news we’ve had in the fentanyl situation in quite some time. Quick review. Fentanyl is a synthetic opioid, so it is manufactured as opposed to grown and processed, which means that it can be produced faster and at a much lower cost than the natural but organic drugs that are processed with gasoline anyway, because of that, the time to target to get it into the system is a lot lower. 

And Graham, for Graham, it’s something like 500 times as powerful as cocaine or heroin. And that means a lot of people have shot up with it and just died. And it has been one of the leading causes of death in the United States for the last several years. So a one third drop is amazing news. We can probably attribute that drop to four main factors. 

First of all, the Mexicans who are producing this stuff, this is not coming from the cartels. This is coming from small mom and pops that are basically cooking the stuff up in a garage. And those folks have not been interfacing directly with customers. There’s a few supply chains for distribution between them and their customers. And so it took them a while to realize that they were just killing everybody. 

And that’s bad for business. So when they make it into, say, pills, they have bit, which are then, you know, dissolved or crushed or whatever. They’re making them less strong. So less than one third of the dose that they used to have a few years ago, giving people a chance to, you know, not die. Second, for the the addicts in the United States that are dying from fentanyl. 

You can only die once. And so if enough addicts do this drug, then the remaining addicts, you’re like, Maybe that’s not the high I’m after. Which brings us number to three. It’s like it’s. It is the high that you’re after. Maybe I shouldn’t just pop a pill or inject it. Maybe I should crush it, turn it into something I can smoke, and that way I can meter how much goes into me. 

Those three things combined have really contributed to a significant drop in lethality. And then finally, there’s something called Narcan, which is an anti narcotic drug that you can give to somebody who has overdose. And it’s now not just available in hospitals. You can actually get it and take it home with you. So if you have a friend or a loved one who you know is going to overdose, you can have the Narcan standing by and hopefully revive them in. 

Those four factors have really helped out. Does this mean that the fentanyl crisis is over? Oh God no. Again, it’s a synthetic. You can cook it up in your garage. And even if every single drug lab in Mexico were to vaporize tomorrow, the technology is so easy. We’re talking about, like, middle school to high school chemistry here that it would just pop up somewhere else like and say, I don’t know, Oklahoma or Illinois. 

So this is part of the drug milieu. Now we’re not going to get rid of it. All we can do is hope to cope with it better than we’ve been doing so far. Still, I’ll take my good news where I came.

Getting Ready for Trump’s Tariffs – TEASER

AI generated image of supply containers with the flags of the US, Mexico, and Canada on them

Today on Patreon, I released the full video covering Trump’s next round of tariffs set for early April and the impact they’ll have on the economy. For access to that video, join the Patreon now!

We’re also excited to announce our next LIVE Q&A session will be on April 9th! This is an exclusive perk for our Analyst members on Patreon. More info can be found on the Patreon page.

Click here to learn more

Here at Zeihan on Geopolitics, our chosen charity partner is MedShare. They provide emergency medical services to communities in need, with a very heavy emphasis on locations facing acute crises. Medshare operates right in the thick of it, so we can be sure that every cent of our donation is not simply going directly to where help is needed most, but our donations serve as a force multiplier for a system already in existence.

For those who would like to donate directly to MedShare or to learn more about their efforts, you can click this link.

Transcript

Hey, all. Peter Zeihan here, coming to you from a bright and sunny Colorado today. Oh. This is going to be a big one. I have to warn you about the recession that’s just around the corner. Now, if you go back to my work from last year, I have been of the belief that we had no reason to fear recession at all. 

U.S. consumer spending was strong. Industrial construction spending had been hitting records for almost two years straight. Technological productivity was starting to pick up again. Things looked pretty good. There was no big debt overhang except for in the federal government. And that’s not new. And in private sphere, credit card Defaults, mortgage and car loan defaults were well below historic norms. 

They were simply off the record lows that we had in the aftermath of Covid. Things looked pretty good. But we’ve had a significant degradation in the environment in just the last several weeks, and it’s worth outlining to everyone on how we got to where we are, and especially what’s just around the corner. And if you were to sum it up in one word, it’s tariffs…

Why You Shouldn’t Expect Good Policy

Photo of the US White House

A nice convo with mom and dad can always yield some new ideas, so if all you get from this video is “give your parents a call” – I’ll consider that a win. The TLDR of our convo is that you shouldn’t expect good policy from the Trump Administration.

Following the purging of experienced US government officials, widespread dysfunction has broken out. The traditional flows of information have been severed; it used to start with technocrats that retain their positions across administrations due to their institutional knowledge > then deputy secretaries overseeing operations > then secretaries who pass the info along to the President. Well, many of those technocrats have been fired and replaced by political loyalists, sans expertise.

Many agencies are left with inexperienced loyalists not simply at the helm, but throughout the entire senior management. The result? Dysfunction, an inability to respond to crises effectively, and weakened American power on the global stage.

Here at Zeihan on Geopolitics, our chosen charity partner is MedShare. They provide emergency medical services to communities in need, with a very heavy emphasis on locations facing acute crises. Medshare operates right in the thick of it, so we can be sure that every cent of our donation is not simply going directly to where help is needed most, but our donations serve as a force multiplier for a system already in existence.

For those who would like to donate directly to MedShare or to learn more about their efforts, you can click this link.

Transcript

Hey, all Peter Zeihan here come to you from Colorado. I just had a phone call with my mommy and my daddy where we talked about Trump, and, it occurred to me that, the conversation could really be distilled into a fun video about why we should not expect any meaningful positive evolutions in policy out of the Trump administration, really, from any department, the way the US federal system works is at the top of every department is something called a secretary. 

So secretary of defense, secretary of the interior, Secretary of energy, all that good stuff. And the primary job of the secretaries is not to make policy, is not to carry out the president’s wishes. It is to keep the president informed of what is going on in their little circle of the world. The job, of secretary is a political appointment has to be confirmed by the Senate. 

The next step down or the deputy secretaries. These are the people who are responsible for carrying out policy. For the most part. There are again, political appointees, again confirmed by the Senate. And they’re in charge of the day to day operations and giving the orders and managing the department directly. So three tier system so far, president’s at the top gives the orders. Secretary is one step down. They’re the ones who keep the president informed to make sure he understands what’s going on. 

And then the next step down are the deputy secretaries, whose job it is to manage the department and push through the president’s agenda. Below that, you get these multiple tiers. You get things called assistant secretaries and deputy assistant secretaries and executive secretaries. And this is where it shifts. And it’s a different department by department. But these are the folks who actually make the trains run on time. These are the people with the institutional knowledge of what’s going on in the department, in the sector. 

These are the people who have managed day in day out, the staff of the department in its many thousands over the years, they’ve been people who have been steeped in the culture, and they know the ins and outs of how things work. They’re the ones who actually implement any policy changes that come down. Now, the problem that we’re having with the Trump administration is that most of these positions, most of these technocratic positions, are still technically political appointees, but established by tradition over the last hundred and 40 years. 

They’re allowed to keep their positions year in, year out. Administration. After administration, because they’re the ones who know how the things work. And so it is very, very rare for a president to dismiss anyone at this lower level because this is where the knowledge is. Well, Trump came in and fired them all in every department, and in most of the cases, he replaced them with people who were politically loyal to him but actually have no experience in the sector in question. 

So a great example, in the Defense Department, all of these top levels, there’s only one person who has any experience in defense work, and it’s experience in as a contractor as opposed to policy or warfighting. So basically the top three levels of all the departments have been stripped of any knowledge of how these things work. 

Now, if your goal is to eliminate regulation by simply hobbling the institutions, you know, this is one way to do it. It’s the expensive way, and it’s making sure that you can’t react to anything in a crisis. So if something does go wrong in defense and energy and so on, there is no longer a cadre of people who are capable of informing the president of what’s going on because they don’t understand what’s going on in the sector. 

And then there is no longer cadre of people who can do anything about it, because those people have all been fired. You have to go down and your career civil servants, and hope that they’re competent enough and that they can up manage, the people above whom? Them who really aren’t familiar with the sector at all. Now, you go below all that political, pointy and managerial stuff, and eventually you get to the rank and file of the people who do the jobs. 

The Congress has mandated that you do. And of course, there’s different categories of people here as well. The two that have been in the news the most are the provisional employees and the temporary employees now, provisional employees or people who have been onboarded into their department within the last two years, typically. And so they don’t enjoy full civil service protections. 

They’re not full members of the union. And so does. And Elon Musk has really gone after this class of people and firing them because they’re easier to fire. But they haven’t really paid attention to what they were doing. They just fired anyone that they could. One problem here is that Congress has mandated and appropriated money and was signed by the president in the budget, for them to do X, Y, and Z the departments, and they need the staff to do that, including the provisional staff. 

So the question is whether or not the provisional staff can be fired. And in most cases where they have sued in the aftermath, either the labor boards or the unions or the workers themselves, they’ve won. 

Now, to the credit of some of these new secretaries who have come in, who do have some concept of what’s going on, a lot of these provisional and temporary workers were fired before they even got confirmed. So they came into their departments, denuded of staff, and discovered that they were playing catch up. 

Probably the best example of this that I have seen so far is Brooke Rollins of Agriculture. Now, I have said a couple of not nice things about her in the past. I need to apologize for that. She was raised on a farm. She has a degree in agricultural, development, so she has some concept of what’s going in agriculture. 

She just hasn’t worked in that space. For her career as an adult, she was in the law firm and then end up working for, Rick Perry. Rick Perry? No shit. Whoever the governor, Abbott, Governor Abbott of Texas now, as well as in a conservative think tank, she’s not dumb. She’s got a college degree, but she hasn’t worked in the agricultural space until now. 

So she comes in on her first job and realizes that, you know, we’re not testing for food borne diseases. The people who were testing for bird flu are gone. And so she is on her back foot trying to reconstruct this, and she has to do it by herself, because the people that Donald Trump has put under her don’t know what they’re doing. 

So for every positive story we have, like somebody like Secretary Rollins, we’ve got a negative story of someone like Pete Hegseth at defense or RFK Junior Health and Human Services. Who knows very little about their department and maybe has a couple of ideological or crazy, conspiracy level ideas about what they want to do. And they’re surrounding themselves with people like themselves who also don’t know anything about their departments. 

And the result is already pretty widespread dysfunction at higher cost than what we had before. And when I think of defense and I think of health and human services, I don’t think of optional departments. These are ones we kind of need now as policy continues to break down and as management of these systems continues to crack, it’s a question of what’s geopolitical and what’s not. 

I could spend months going through some of the disasters that are happening in domestic policy right now, but unless it hits American power, I’m going to leave that one out. That still leaves me with a very rich tableau of things to work with, unfortunately. And we’ll be covering up lots of those in the days, weeks and months to come.

Russia, NATO, and Negotiations

NATO flag with a Russian pin and ammunition

At the time of initial posting on Patreon, negotiations were just beginning between the US and Russia on the topic of Ukraine. US defense secretary Pete Hegseth began by conceding several points to the Russians and with blood in the water, the Russians are trying to roll back NATO’s involvement in Europe to pre-2007 levels…all based upon some he-said, she-said.

This is all part of the usual smoke and mirrors that the Russians love. As this next wave of propaganda hits, these claims will be amplified and figures like Tulsi Gabbard will likely make things worse.

The bottom line is that the Russians are betting on the Americans being dumb and gobbling up this narrative they’re pushing. Let’s just hope that US security policy isn’t so easily swayed.

Here at Zeihan on Geopolitics, our chosen charity partner is MedShare. They provide emergency medical services to communities in need, with a very heavy emphasis on locations facing acute crises. Medshare operates right in the thick of it, so we can be sure that every cent of our donation is not simply going directly to where help is needed most, but our donations serve as a force multiplier for a system already in existence.

For those who would like to donate directly to MedShare or to learn more about their efforts, you can click this link.

Transcript

Forthcoming…

The Russian Reach: Russia’s Wish List Part 2

Flags of USA and Russia merging

If you thought that Putin already had enough to dream about based upon yesterday’s video, I’ve got news for you. Today, we’ll be adding some more items to Russia’s wish list.

As you hopefully picked up by yesterday’s video, Russia really loves when bad things happen to the US. We’re talking dismantling the FBI, undermining cybersecurity efforts, killing data collection efforts, and weakening those global intelligence networks. The Russians would also love for the US to get caught up in more global conflicts, sever ties between the US and their allies, and promote extremist politics. Oh, and while we’re at it, why not throw in the overall weakening of the US military and ability to maintain long-term strategic dominance.

Okay, that’s quite the list. This is in no way a set of predictions, just some things to keep an eye on as the Russian influence in Washington continues to shape policy.

Here at Zeihan on Geopolitics, our chosen charity partner is MedShare. They provide emergency medical services to communities in need, with a very heavy emphasis on locations facing acute crises. Medshare operates right in the thick of it, so we can be sure that every cent of our donation is not simply going directly to where help is needed most, but our donations serve as a force multiplier for a system already in existence.

For those who would like to donate directly to MedShare or to learn more about their efforts, you can click this link.

Transcript

Peter Zeihan here coming to you from Scottsdale, Arizona. We’re continuing our series on the Russian reach, working from the theory that the white House has been penetrated by Russian intelligence. Today, we’re going to give basically the dream list of the things that the Russians are after. These are kind of a dragon’s teeth sort of topics, things that will hobble the United States for years, if not decades to come. 

And it starts with limiting the ability to actually even have optics on its own system. First thing would do would be destroy statistical capacity so that the United States doesn’t even have reasonable information on its population or its economic structures within its own system. We’re seeing some of that within Commerce and Department of Labor already. Next would be to go after the law enforcement system at the federal level, most notably dissembling the ability of the FBI to function. 

And if you do that, the next logical step is to disassemble all the offices within the United States, whether it’s for cyber security, physical security or organized crime that allow it to target and limit Russian capacity and Russian Intel operations with the United States. And then flip the script and actually allow the Russians to establish things like friendship centers throughout the country in the way that the Chinese recently did with Confucian centers. 

After that, you’re talking about breaking down the ability of the United States to leverage Intel on a global basis. Go after the Five Eyes network in cooperation with not just the World Health Organization, which has already happened, but with Interpol, so that the United States is even losing access to the networks that it’s built up over the decades to get to this point and then finally going after Congress. 

Congress provides the oversight and the budget for everything that happens in the U.S. system. So you start working with the really stupid Congress people and then move on to the ideologically blind Congress people and basically sabotage the system from the inside. All of that is on the docket. I’m not saying it’s going to happen. I’m saying this is what the Russians want to do. 

And that’s before you talk about the really hard security issues. 

Okay. Security issues. These fall into two general categories. The first is to. So problems around the world on the far side of what the Russians consider their outer perimeter be, so that any future resurgence of American power has a dozen things to deal with before they can even consider about dealing with the Russian state. In the case of the Middle East, the Russians loved the war on terror because for 25 years, the United States was occupied with dealing with that region. 

We basically went to war with a paramilitary tactic, which was stupid. They would love to see the Americans send a peacekeeping operation to Syria to try to hold that place together, because you don’t want to talk about a thankless task. They love, love, love, love what the Trump administration is doing with Gaza. Because here you have a completely worthless piece of territory wrapped up with the most intractable political problem, in the region. 

And in doing what Trump says he wants to do, he would rupture relations with pretty much everyone in the Arab world and again, locked down an occupation for absolutely no reason whatsoever. And never forget that the Russians have noticed what’s going on with the Houthis in Yemen and to get Americans involved in what would be basically the desert equivalent of Vietnam is something that they are really pulling for. 

And so the Russians have really been pushing for the Houthis to restart their attacks on shipping in the Red Sea in Europe. It’s a little bit more straightforward. Number one is to break completely the relationship between the Americans and the country. That has always been the primary Russian concern in Europe, and that is the Germans. And the fact that we saw the Americans actively campaigning for the neo Nazis in the last election is something the Russians really like to see. 

And if the Germans are now having to rearm because the Americans are ending the alliance, having a rearmed Germany that is also run by neo Nazis, that’s kind of the trifecta, because would scramble European security. I’m not saying that might not bite them on the ass down the line, but that’s a problem for another day. 

Looking forward a little bit more, the countries in Europe that will be part of the American Alliance in the future have to be countries that are not dependent on globalization and have a relatively young and positive demographic structure. That’s not mainland Europe for the most part. That’s Scandinavia, most notably Sweden and Denmark, who are the larger economies who are not part of the euro zone. 

So no matter what happens to Europe, it’s going to look a lot different. It won’t be an economic grouping. And those two countries combined with, say, the Nordics, the rest of the Nordic countries, which is Iceland, Norway, Finland and the Baltic states, that cluster is something that is going to endure and is likely to be the core of a future American alliance. 

Well, if the Russians can break that relationship, then all of a sudden the Americans are unmoored. In Europe and this cluster of countries, the Scandinavian Nordic countries, are the ones who have been most vociferously working with the Ukrainians to hold back Russian power. And all of a sudden, Donald Trump is talking about getting Greenland for the United States. 

And Greenland is a Scandinavian territory controlled by the Danes. So they love all that, too. But it really gets scary when the Russians are really going to lean into this. Is breaking the ability of the US military to function in the way that it does. There’s more to the American military than the ships in the jets and the infantry in the tanks. 

It’s about the people. We have the best trained force in the world, not just in how to use the hardware, but how to think about the future, how to think about how to use the hardware. And that is courtesy of our staff colleges, for example, the marine facility in Quantico or the force facility at Maxwell Air Base in Alabama, or the Postgraduate School, in Monterey, California, for the Marines in the in the Navy, these facilities teach the airmen and Marines and sailors and soldiers who have decided to make the military their calling their full time career over the long haul. It teaches them how to be better officers. It’s not just about history, it’s about economics and trade and electricity and energy and logistics and more over than that, they are also used to bring in soldiers from other militaries, not just Allied wants to teach them about things like rule of law and democracy and fighting drug trafficking and money laundering, basically creating the bonds between the American military and other potentially allied militaries around the world to make for a better future and to allow the United States to penetrate where it needs to, when it needs to. The Russians hate these facilities because they can’t replicate them themselves. People who allied with the Russians do so out of convenience, not out of any sort of cultural bond. And the Russian military is as shot through with corruption as the rest of the Russian government. And so when it comes to things like fighting drug laundering, the Russians are usually on the other side of that equation. 

The Russians would love to see these things gone, and they may have an informal ally in the shape of the current defense secretary of the United States, Pete Hegseth, back when he was a Fox News host. He would often play this Russian propaganda video for Russian recruitment with, like, you know, all strapping white dudes who were marching and shooting. 

And it’s not that marching and shooting are not military things, but there’s so much more to a modern military, especially a tech driven military, that the U.S. has than that. And if Pete Hegseth goal really is to get back to the warrior ethos of what exists in a Russian propaganda video, you know, that might have worked in the 1800s, but not today. 

And weakening the staff colleges and their support system would be an excellent way from the Russian point of view, of breaking the ability of the U.S. military to function as it does long term. And that system is the result of 85 years of fine tuning. It will take a long time to rebuild if it’s closed down. Now, do I think that all of these things will happen? 

No. This is the Russian dream list. This is not a prediction. I’m putting this together so you can look at what the administration does and judge for yourself just how far down the road we can go in the Russian direction, and just how powerful the Russian influence in Washington has become. I hope none of it happens, but I already see some of it going down.

The Russian Reach: Russia’s Wish List Part 1

Flags of USA and Russia merging

The Russians have already achieved a major intelligence breakthrough by influencing American leadership, but what if they started really swinging for the fences? What would be on the Russian wish list?

Ukraine sits at the top of that list, forcing a surrender agreement, eliminating NATO involvement, and crippling Ukraine’s military and economic capabilities. By no means is that the end of the line for the Russians. As Putin puts his head on his pillow at night, he dreams of a dismantled NATO, access to American intelligence, the ability to impose his will on other economies to benefit a struggling Russia, and undermining American demographics and health.

Some of those SHOULD seem far-fetched, but with the way things are heading…I’m not taking anything off the table. The common thread here is that Russia would love to weaken the global influence the US has and open the door for future conflicts in Eastern Europe.

Here at Zeihan on Geopolitics, our chosen charity partner is MedShare. They provide emergency medical services to communities in need, with a very heavy emphasis on locations facing acute crises. Medshare operates right in the thick of it, so we can be sure that every cent of our donation is not simply going directly to where help is needed most, but our donations serve as a force multiplier for a system already in existence.

For those who would like to donate directly to MedShare or to learn more about their efforts, you can click this link.

Transcript

Hey, everybody. Peter Zeihan here, coming to you from Colorado. The Russians have already achieved what is typically considered the platinum standard for an intelligence operation that has been successful, and that’s getting a foreign leader to repeat all of your propaganda and even make policy based off of it. But now that they’ve achieved that, they are going to aim higher. 

And there’s no reason for them not to. They’ve got Tulsi Gabbard in the white House basically serving as their primary funnel for misinformation. And she’s preventing other information from even making it to his ears. And there are probably we’ll do with this later. Other folks within the Trump administration that are also serving as similar conduits, the bottom line is that the sky is the limit here for the Russians. 

I mean, normally you split your operations in kind of three general categories. You’ve got your day to day operations to undermine foes and support allies and support operations. You’ve got your, brands in the fire where you have longer term assets that are kind of waiting for the opportune moment, and then you’ve got your Hail Marys that you’re lining up. 

You know, you don’t expect any of these to work, but you might as well try. And now that the most powerful person in the world appears to be at least susceptible, I mean, this isn’t Viktor Orban, the prime minister of Hungary, who’s been a Russian stooge for years. This is the most powerful man in the world. 

And so for the Russians, they’re thinking that today the sky is the limit and they’re going for everything. And so this video is a list of the things they’re after. And what’s really depressing about it is you will notice that some of the things on this list, they’ve already achieved. 

What we’ve seen so far with the recent changes in the Ukrainian war with the Americans stopping to send any weapons to Ukraine, barring, any intelligence transfers, barring private entities from doing any intelligence transfers, barring the Ukrainians from purchasing anything like satellite imagery. 

It’s not that the United States is now neutral on the war. It’s that it’s actively sided with the Russians. And there’s even some preliminary reasons to expect that the U.S is actually sharing Intel with the Russians on the Ukrainians. So this is hardly the end of the story. This is the beginning of the story. So it’s worth looking forward and thinking about long term Russian goals and how the Russians can redirect American power to help achieve them. 

And the first step, of course, is any peace agreement. That’s just such the wrong word here. The, the surrender agreement, that the Trump administration is likely to force upon Ukraine in favor of the Russians, what the Russians want. Step one, no restrictions on the placement or type of Russian forces on the Russian side of the Line of Control, but a demilitarized zone on the Ukrainian side of the Line of Control. 

Also, no foreign peacekeepers, certainly. No. No NATO members, in Ukraine’s territory at all. A complete, evisceration of the Ukrainian leadership with Zelensky, the president and his senior political and military staff being remanded to Russia for trial, a public admission by Ukraine that the war is their fault and therefore the Ukrainians are subject to war. 

But preparations and, for the United States to say publicly that the war was also Europe’s idea. So Europe is on the hook for war reparations, financial assistance from the United States to reconstruct the physical infrastructure, the oil, natural gas pipelines that used to cross Ukraine, as well as the Black Sea going to Europe and an end to American liquefied natural gas exports to Europe, so that the Europeans are once again hooked on the Russians for all sorts of energy, a barring of European assistance to Ukraine and military sense. 

And should European arms manufacturers defy that, secondary sanctions from the United States on the countries involved, an American public declaration that the territories that are held by Russia, in Ukraine, as well as in other parts of the former Soviet Union, where they’ve taken over chunks of territory in other war, say, Moldova and Georgia are sovereign Russian territory. 

And therefore, from the American point of view, can never be remanded back. 

A ban on all American weapons transfers and civilian efforts from the business community to help Ukraine, whether that’s for imagery or for weapons or any sort of support equipment. A similar ban on anything coming from Europe and a Russian customs presence at all Ukrainian ports of entry to monitor, to make sure that nothing flows through, and active collaboration with American Intel throughout Europe. 

In order to make sure the Europeans stick to the letter of the deal. And remember, of course, that this deal does not need to be ratified by the Europeans. This is going to be an American Russian bilateral deal, and everyone else can just suck it. 

 Anyway… You get the idea. The point is, for Ukraine to be so neutered as a country that when the Russians decide six months, two years from now to roll in again, it’ll be a much easier fight than it was last time. 

Oh, yeah. De-industrialization of Ukraine specifically for all of its weapons development, most notably drones. That would have to be part of it. Anyway, the whole idea is that so whenever the Russians decide that now is the time to continue the war, they can roll in without a problem, and it would shatter the American relationship with NATO, which is probably on deck anyway, so that the Russians could actually then roll right into the next phase of the war, for Estonia, Latvia, Lithuania, Poland, Romania and Moldova. 

Remember here that this is, this is the swinging for the fences plan. You basically split what any country does with intelligence into a few buckets. You know, number one is your your day to day operations. Number two are the things where you want assets in place so you can take advantage of changes in situation. And the third one is swinging for the fences. 

So you’ll notice that some of these items are already part of the official, American line. For example, the Americans already given in to a number of the Russians, strictures when it comes to things like NATO membership for Ukraine. The Russians are going to push for more. And this is their dream list. And I’m not saying they’re going to get them all, but how far they make it down. 

This list will give you an idea just how tight, Russian control over the white House has become. Let’s see. Next, let’s talk about what the Russians are going to try to get directly, not Ukraine, but for Russia proper. 

Okay. Moving on. The thing the Russians want to affect Russia directly. An end to NATO. The United States pull out and cease all meaningful intelligence cooperation. In fact, turn that intelligence operations that we have in Europe and put them at the Russian disposal so that the Russians have eyes on everyone in Europe, most notably Germany and countries further east. 

So when that they do decide to launch the next phase of the war. Estonia, Latvia. Lithuania, Poland, Slovakia, Czech Republic, Romania, you know, everyone in the Central European bloc can’t get the jump on the Russians and surprise them in the way that the Ukrainians did over and over and over again in the war. Basically use American intelligence operations, maybe even some limited American military operations, to hamstring that whole process. 

All Russian news outlets should be allowed to operate within the United States information space without any sort of restriction. The United States should stop importing agricultural products from Canada, which is mostly, wheat and coarse grains, and instead start importing them from Russia to build a reverse dependency. Compared to what we had during the Cold War, the Russians have studied their own economic history very well. 

They know where they screwed up in the Cold War and basically tried to turn that into an American vulnerability, which could only happen if the American president was really pushing for it, abandoned the American icebreaker program and decommissioned the two icebreakers the US has so that the, high Arctic becomes a Russian only zone of influence. 

Wipe all American held Russian debt to zero, and let the Russians into the heart of the American financial network once again, so they can raise funding from everywhere and even provide a few US sovereign guaranteed backstops to the bond market so that people could invest in Russia and the Americans will take the risk, which would definitely allow them to tap more capital at a lower rate. 

And then finally, perhaps most importantly, use American government financial guarantees to encourage American companies to invest directly in the Russian economy. The Russians have had a complete gut, of their skilled labor force during the war. And because no one’s really been trained in technical stuff since the 90s now, and they’re losing the ability to produce almost everything. 

But with the oil and gas industry, definitely be at the top of the list. So the Russians, literally hundreds of billions of dollars of investment, and it can’t be generated from it themselves. So if you get the U.S. government to pay for it, and the U.S. government to encourage American companies to come into the Russian space and start rehabilitating those fields and building new pipelines, that would be wonderful for them. 

In addition, yeah. It’s not enough for to just rehabilitate Russian oil and gas. You also want to get American companies involved in the production of everything in Russian occupied Ukrainian territories, so that the American government is firmly, in bed with the Russians in recognizing Russian controlled Ukrainian territory. 

Next, let’s talk about the Russians favorite topic and how to smash the American demographic advantage. 

One of the biggest weaknesses of Russia vis-a-vis the United States is demographics. Between the world wars and the mismanagement of the Soviet system combined with massive heroin and alcohol abuse, and then the economic dislocations of the 1990s, the Russian ethnicity is literally dying out. Now, it’s not dying out today. This isn’t China where we’re going to be able to see it within a decade. 

But it’s a multi-decade trend down. And the Russians know that they’re going to vanish from the Earth this century at some point. And that’s part of the reason why the Ukraine war was launched, when it was when they still had enough people under age 30 to try. But when they look at the United States and see that they see a country with much lower mortality rates, especially in younger people, they realize that there is an opportunity, right now with the Trump administration, to undo the last 120 years of progress, in reducing American mortality and in that they have probably the best possible stooge to help. 

And that is RFK junior, who is the new Health and Human Services, secretary, aside from the fact that he is personally staunchly opposed to vaccines are pretty much all types. I mean, they technically call him a vaccine skeptic, but he’s not skeptical. He’s opposed. And even with the measles outbreak we have in Texas right now, he’s saying publicly, you know, vaccines are a choice anyway. 

What the Russians would like to do is increase mortality among Americans. Under age five by at least a factor of ten. Right now, it’s about .6.6 5%. Back in 1900, before the industrialization of medication or mass immunizations, it was closer to 19%. So, you know, it’s come down by like 95%. And they’d like to push it back up. 

And the easiest way to do that is to remove vaccines from the system. You start by doing what RFK says he wants to do and making them all optional. And then you use the his position in HHS to basically dissuade everyone from getting things like boosters and to dissuade the development of new vaccines. So during Covid, we saw the first large scale application of new RNA vaccines, which have an order of magnitude fewer side effects. 

But the Russians were able to basically convince a segment of the American population that they were horribly dangerous. And right now, we have mRNA vaccines starting to come out in all kinds of different disease prevention. And we’re even starting to see the early stages of, say, cancer vaccines because of the technology. I mean, it really is amazing stuff. 

So the Russians would want RFK to do what RFK is going to do and try to smash that development at any possible way in order to keep American mortality as high as possible. 

The Russians think that RFK is so stupid. 

I mean, he’s got to be one of the dumbest people alive today that, they really can’t keep up with how misfired his brain works. Because anything that they try to put into his head, he immediately twists into something that’s even more grotesque. And he’s kind of like a roach motel for conspiracy theories. So there’s this one little contest among the Russian bot farm about who can get RFK to say the dumbest things. 

And the thing is, everyone has one. Because the guy really is a moron. And now he’s in charge of health policy in the United States. So now that the Education Department is likely to go away and its, prerogatives are likely to be split up among other departments, things like vaccine mandates that were used to be enforced by the Education department will now come to HHS, and RFK Jr will be in a position to basically smash those shots first, turning them into voluntary operations and eventually whittling down the list of vaccines that can be used, even if some of these has been approved for decades and really have no side effects at all. 

The goal here is very simple to, over the decades, bleed out the American population so that we end up in a Russian style demographic crisis. 

Let’s talk about the economic space. The Russians would love, for example, to break the power of the US Federal Reserve. Or at least have it redirected to service Russian national goals. The US dollar is the global currency that allows the United States do a lot of things. And part of that is because the Federal Reserve runs a relatively tight ship when it comes to monetary authority. 

Anything that weakens that would be great, especially if it encourages the circulation in the use of non US dollar assets, over which the Russians have a lot of influence, especially through the crime directive. Or keep in mind that the Russian political system is led by Putin is in part a partnership with organized crime. And so any type of cybercrime fall to the core of that. 

So anything that encourages crypto, especially Bitcoin, is something that the Russians would really like to see because it would give them more of an in into the entire Western world and start to eat away from it below. There is nothing in the private sector that could make that happen. But if the US president were to take actions to weaken the fed and encourage crypto. 

Well, there we are. Let’s see, on the topic of the bond market, use the politicization of the FBI to go after any sort of financial institution in the United States that actually provides a degree of economic stability. So these are the major bond traders. These are the major banks. And all you have to do is generate a pretext that, for whatever reason, one of the or more of these groups has a problem with Donald Trump, and then he directs the FBI to basically go in there, start arresting people and shutting things down. 

The Russians would love to see that at scale. And there are so many people in the financial world who are concerned about what Trump is doing economically. It’d be really easy for Trump to drop a hit list, in terms of broader economics, go after the trade relationship, most notably the NAFTA relationship. The Russians understand that they’re no longer manufacturing power. 

And part of the reason for that is that no one trusts them. And so no one will participate with the Russians on supply chains. Well, in North America, the three countries are the most tightly integrated manufacturing region on the planet. And anything you can do to throw sand in those gears is great. So, for example, if you can get the president to go up to Canada and say, you know what, we’re going to change the borders. 

You know, that’s a great idea. Also, this tariff strategy going on and off and on and off and on and off and on off. Last week we had five different strategies for tariffs in Canada in one week. That’s wonderful for arresting industrial development in all three countries. And then what else? Oh yeah. Destroy the agricultural sector. 

Ban the use of things like synthetic fertilizers, synthetic pesticides, synthetic herbicides. This is something that their wind up toy of RFK juniors already working on. Because if you can reduce American yields by half or more, all of a sudden the world’s largest food exporter turns into a food importer. And the Russians gain a lot more leverage around the world because they’re still the world’s largest wheat exporter. 

One more end of American sanctions on the Chinese chip industry. Two things going on here. Number one, the Biden administration built up this great alliance of countries around the world who participate in the supply chain for microchips and got them all to cooperate on restricting access to China. So in breaking this, not only would the Russians break up the American relationships with a lot of the allies, you’d also establish in China an alternative option for high end chips. 

So if relations with the United States and Russia go back to something that’s more akin to normal, there would now be an alternate supply. It would make the Russians far less susceptible to American sanctions for the next war. The Russians try to launch. 

On the security front, things basically fall into two categories, and it’s all revolving around nuclear weapons. The Russians would want to break the relationship between the United States on one hand and the French and the Brits on the other hand, because those are the two countries in Europe today that already have nukes. And there’s a lot deeper relationship here than just having three nuclear powers who are our allies. 

I mean, it’s not just about breaking it so that they’re pointing nukes at one another instead of just at the Russians. And it really comes down to the American British relationship. That relationship gives the United States access to a huge portion of what used to be part of the British Empire. So, for example, there is a nuclear submarine base that the US uses extensively in Scotland that allows for power projections into the northeast Atlantic, which is the part of the Atlantic the Russians are most concerned about. 

If you can, for example, get the Americans to actively encourage Scottish independence. You not only shatter the relationship with London, you also end the American naval presence in that part of the world, which gives the Russians a number of options. Same basic concept is down in the Mediterranean. The Brits have a foothold in Cyprus. They have a foothold in Gibraltar. 

And the Americans both use those assets regularly. But if the American Anglo relationship is broken, then all of a sudden the American position in the Mediterranean writ large dissolves because there’s no place to base. Same goes for places like Diego Garcia in the Pacific. So this is absolutely top tier. It’s definitely falling into the swing for the fences issue. 

But considering the ability of Donald Trump and J.D. Vance to deeply, personally offend the Brits of late and basically talk down the alliance, it’s not something that we can rule out something the Russians would love to see. 

As for the American nukes, Donald Trump is on record saying he’d like to get rid of him completely so that. Yes. Have the Americans unilaterally disarm, or at least get rid of more of their weapons? Maybe have an agreement with the Russians that you can’t place any sort of nukes on any sort of naval vessel. Since the Russians don’t have much of a navy, that’s not them giving up very much. 

And maybe even get some inspections in there so that the Russians can peep under the hood of American military hardware to ensure that the Americans aren’t warmongers. 

Hell, that’s a lot. Okay, we’re not done. That’s just 20 minutes. That’s enough for today. Tomorrow we’re going to go into the really long term stuff that is designed to cripple the United States. Long term things that the Trump administration may already be working on.

The Chinese Attempt the Impossible

A group of people on a hill hoisting up a Chinese flag

The long-term outlook for China is bleak. I’ve discussed it plenty. However, the Chinese are getting a little lovin’ from an unexpected source.

At China’s National Congress, Xi got to hear all his biggest fans clap in unison and then listen to him spout off about his unrealistic 5% GDP growth target. And as a reminder to just how unrealistic this is, go ahead and look through China’s demographics, housing crisis, and overall economic stagnation.

Despite all those factors working against Xi, he’s getting some lovin’ from the place he least expected it. With Trump’s tariffs on Canada and Mexico, the mass exodus of manufacturing from China has slowed. This won’t save the Chinese, but the Trump administration just put a couple more quarters in their parking meter.

Here at Zeihan on Geopolitics, our chosen charity partner is MedShare. They provide emergency medical services to communities in need, with a very heavy emphasis on locations facing acute crises. Medshare operates right in the thick of it, so we can be sure that every cent of our donation is not simply going directly to where help is needed most, but our donations serve as a force multiplier for a system already in existence.

For those who would like to donate directly to MedShare or to learn more about their efforts, you can click this link.

Transcript

Hey, everybody. Peter Zeihan here coming to you from Colorado? We’re gonna take a break from all the Trump stuff and talk about how China screwed, because that’s an oldie but a goodie that everyone likes to hear. So over the last couple of weeks, the Chinese have been having their national congress, which is basically a rubber stamp group of the Chinese Communist Party that gets together to slow clap. 

Now, it was literally sort of hilarious when Sharon ji walked in like a thousand people slow clapped in unison. I mean, it was some creepy Orwellian shit. But it underlines just how tight the cult of personality is that, Ji is kind of a little bit like Trump, and now he requires these public displays of affection from people who aren’t allowed to speak. 

Anyway, the big thing that was proclaimed was we’re going to stick with the 5% GDP growth target, which they can’t make, and they’re going to bend the will of the state, I believe, is the specific offic, quote, to robustly expand the consumption of the people, the idea that the state is going to get the people to spend, you know, has clear misunderstanding of how markets work. 

It’s also not going to work. Most of the consumption that is done in the society is from people who are aged roughly 20 to 40 5 or 50. The people who are having kids, they’re building up. They’re accruing the assets that they’re going to have in life. And they’re going to college and they’re buying cars and they’re buying homes. 

Once you hit that 45, 50 point, the kids are usually no longer a factor. The house is probably going to be downsized and they’re done accruing material or wealth. And so they then start building financial wealth, which is a different sort of economic activity. So for China to get people to expand consumption, he needs to make life easier for people who age 20 to 40 5 to 52. 

Problems with that? Number one, China just went through the fastest urbanization process in human history, and it’s local governments in order to get more funding from the national government as well as more local tax revenue in the like, basically sold a bunch of land, built a lot of condos, which created housing that most people can’t afford. And each individual housing unit is typically owned not by one person, by it, by a cluster of neighbors and friends and associates, with each condo being owned by a different cluster. 

So selling one is almost impossible. And, they don’t want to rent them out. Because once somebody moves into a condo, the feng shui changes. Never underestimate how superstitious the Chinese can be. And so they’re just sitting empty. So there’s a crisis of cost of living in China. That’s problem one. Problem two. Rapid urbanization means a rapid drop in birth rate. 

We are now 50 years of that process. And the Chinese now have more people age 52 and over than 52 and under. There no longer is a big demographic of people under the age of 50 who can potentially consume. So the open question here, of course, is, has China had any real economic growth in the last five years because we flipped into this 50 to having more people over 50 than under during Covid, which is when the Chinese stopped collecting a lot of statistics on their population because you didn’t like the way that they looked. 

So we don’t really know. But just working from what we do know, it does look like exports have expanded while consumption has contracted faster, generally leading to a stagnation across the system. When in terms of the headline figure, that would be problematic enough as it is, but we now have 20% terrorist from the United States on the Chinese system. 

And with every incremental step up, the case for investment in China drops, which is not the same as saying that the case for moving out of China has improved because by threatening tariffs on Canada and Mexico, which is where most of the stuff would go, and then withdrawing and threatening and re withdrawing and re threatening. Donald Trump has basically introduced a huge amount of geopolitical and regulatory risk into the North American system, and no one who feels that they can afford to wait is going to move into that environment until that has some clarity one way or another. 

We are now in the sixth or seventh week, the Trump administration, and we have already had five different tariff policies just on Canada and Mexico. So we are nowhere close to that settling. So ironically, this is providing the Chinese with something that they are in desperate need of. And that’s a bit of a breather, because before Trump came along, we were looking at record rates of slight of industry from China to other places, most notably North America. 

Because the cost structure wasn’t there, the risk was there, and North America was risk free. Now, the risk in North America has risen to the level to counter out those other Chinese issues. So we’re kind of in a holding pattern waiting to see when Trump calms down.