Could Jet Ski Bombs Change the Way Navies Operate?

*This video was recorded during my backpacking trip through Yosemite in the end of July.

The US Navy and its fleet of carriers (and super-carriers) haven’t had much of a challenge on the seas since WWII. But of all things, it might be some low-tech jet ski bombs that change the way the world’s navies operate.

As the Ukraine War evolves, we’re seeing warfare innovations that could reshape all future conflict. This has come in the form of modified speedboats and jet skis with bombs, used to disable Russia’s Black Sea Navy. And other countries are starting to take note.

For countries with constrained naval access points, this could spell trouble; think of regions like the Black Sea and Baltic Sea or countries with punchy neighbors like Israel and Turkey. These innovations are low-cost and accessible to just about everyone…even worse, they’re difficult to defend against with current tech. So, how does this look for the major naval players?

China is vulnerable to attack from smaller countries due to their port locations. For the US, UK and Japan, there’s less concern given their geographies and strategic partnerships. However, everyone should be updating their defense systems and working to handle this new style of water warfare.

Prefer to read the transcript? Click here

Here at Zeihan On Geopolitics we select a single charity to sponsor. We have two criteria:

First, we look across the world and use our skill sets to identify where the needs are most acute. Second, we look for an institution with preexisting networks for both materials gathering and aid distribution. That way we know 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. Then we give what we can.

Today, our chosen charity is a group called Medshare, which provides 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. Until future notice, every cent we earn from every book we sell in every format through every retailer is going to Medshare’s Ukraine fund.

And then there’s you.

Our newsletters and videologues are not only free, they will always be free. We also will never share your contact information with anyone. All we ask is that if you find one of our releases in any way useful, that you make a donation to Medshare. Over one third of Ukraine’s pre-war population has either been forced from their homes, kidnapped and shipped to Russia, or is trying to survive in occupied lands. This is our way to help who we can. Please, join us.

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Transcript

Hey, everybody. Peter Zeihan here, coming to you from Yosemite. Really doesn’t matter beyond that because I’ve been pushed into my tent by some Thunder boomers for the last hour anyway. Thought I’d use the wet as an excuse to talk about the future of movies around the world. Since World War One—really, World War Two—the carrier has been the backbone of everything that matters, largely because they can project power. More conventional ships like, say, battleships have to get into engagement range, which is, you know, measured in miles or tens of miles, whereas a carrier can launch fighters and fighter bombers from hundreds of miles away and never be in danger itself.

That’s why the Soviets invested so much in trying to break through the American carrier perimeter with things like airlines, cruise missiles, or submarines to questionable effect. But anyway, that was the goal. Now, for the last 30 years, the United States has been the only game in town. It’s not just carriers the United States has. It has supercarriers. It has ten of what most countries consider carriers, which are the core of the Marine expeditionary units, and then another ten of the Nimitz class carriers, which are the ones that, you know, outshoot everybody. One of those has more projection-based firepower than every other navy in the world, with the exception of the Japanese and the British navies, who are allies anyway. So, big difference. And then, of course, the United States is in the process of floating three Ford-class carriers, which will be even more powerful. So, from a conventional naval point of view, the United States is in a league of its own. Might as well be on its own planet. The question is whether that is changing.

One of the things that we have seen in the Ukraine war is that the Ukrainians have been able to modify speedboats and literally jet skis with remote controls, put a couple hundred pounds or 500 pounds of bombs on them, and send them off. In doing so, they’ve basically sunk or incapacitated the vast majority of the Black Sea navy of the Russians. It’s actually worse than it sounds because the Russians moved a lot of ships into the Black Sea just before the war, and those are all gone too. So recently, the Russians abandoned the port of Sevastopol. Basically, they’re not having naval assets in the Crimean Peninsula anymore. They’ve moved everything back to Novorossiysk. But the Ukrainians have already hit Novorossiysk, so they’re probably going to have to move it back to Tuapse, or maybe even Astrakhan. Basically, the Russian Black Sea Fleet is no more. It’s no longer a fleet in being. It no longer has the capacity to project power, and it’s basically hiding in its supposed home waters. Say what you will, but the Ukrainians are creative, and they’re working with very, very little. There’s not much about these naval drones that is particularly sophisticated; we just haven’t seen them patched together like this before. So, to think that this technological innovation is going to stop just in Ukraine is kind of stupid.

So you need to look around the world for other navies that really shouldn’t exist much longer because if they get in a shooting war with a neighbor, all it’s going to take is a few non-dudes on jet skis, and they’re gone. The country that is going to suffer the most from this is Russia. All of Russia’s maritime access points where it has naval ports are contested. I mean, yeah, yeah, yeah, yeah, it’s got that really, really, really crazy long Arctic coastline, but hardly anyone lives there, with the exception of Arkhangelsk and Murmansk, which are the bases for the Arctic Fleet. And both of those are within jet ski range of Norway. Saint Petersburg and the Baltic Sea Fleet are even more constrained. Anything that wants to operate there has to get by Finland, Estonia, Latvia, Lithuania, Sweden, Denmark, Poland, and Germany. So yeah, not happening. The only other remaining base is out in Vladivostok, where the Russians are completely circumscribed by the Japanese islands. So, you know, any meaningful conflict involving any of these theaters, and the Russians lose it all very, very, very quickly to jet skis. I mean, that’s just embarrassing. The Russians have never been a naval power because all of its navy points are constrained, and one fleet can’t really reinforce the other, but still, this is just a little over the top.

They’re hardly alone. Basically, there are a lot of countries that are near one another, they don’t like one another, and getting a few motorboats or jet skis together to throw things out of whack is a really good plan. So, for example, if the Israelis and the Turks don’t find a way to get along, both of them can largely decimate the regional navies. This is a bigger problem for Turkey because it’s on the Black Sea, and that means it has to have good relations with not just the Russians and the Georgians, but the Romanians and the Bulgarians. And of course, then there’s the Greeks. The Aegean Sea is probably going to be a no-go zone for the Turkish Navy, which basically makes it really important for the Turks to get along with Israel. Otherwise, they won’t have a navy at all.

But the real fun starts in the Persian Gulf, where Iran, Kuwait, Qatar, Saudi Arabia, the United Arab Emirates, and Oman can basically, whenever they want to, bomb each other’s navies. Not that any of them have navies, but it’s a commercial thing. All of these countries are dependent upon the Persian Gulf and the Strait of Hormuz to get crude out, and now it takes really, really low-tech stuff to interrupt it. But the real, real crazy exciting stuff is going to happen in East Asia because every Chinese port is on the wrong side of the first island chain. That’s the line of islands going south from Japan to include Taiwan, the Philippines, and Indonesia. I would look to Indonesia and the Philippines to really explore these technologies because they’re not naval powers, but anyone can buy some bombs on a jet ski, and all of a sudden, all this money that the Chinese have been investing in their navy is completely pointless.

Now, of course, if you’re talking about the big three navies in the world, that’s the United States, Japan, and the United Kingdom. Those are the three big naval powers. The game might be a little different. One of the reasons why these three countries are the world’s biggest naval powers is because of their positioning. Obviously, Japan and the United Kingdom are islands, so they have to have a navy, and then the United States is basically on a continent more or less by itself from a strategic point of view. Well, in the case of Japan, all of its ports are on the east side of the island, so they’re out of jet ski range. For the United Kingdom, as long as they get along well with Norway, Denmark, and France, there’s nothing to worry about there, and that’s one of the many reasons why NATO tries to keep an eye on all of these relationships. And to be perfectly blunt, the French and the Brits—there’s a lot of bad water under the bridge there, but they’re not about to go bombing one another, and the Danes, the Norwegians, and the Brits have gotten along well for centuries, so that’s probably okay.

There’s still the open question, though, of where can you operate? Just because you can get your ship out of port doesn’t mean you can do anything with it because if you come in range of a foreign coastline, the jet skis may very well come out. So we’re going to have to see a counter-revolution in naval technology here. I don’t want to go so far as to say the age of the supercarrier is over because those things are really tough to sink, and they are really fast, and they are really useful. But if someone’s coming at you with a fleet of jet skis, you don’t have the right weapons for that. There’s nothing on the ships or even in the ring of ships that supports them that can shoot down at an angle to engage these things, so we’ll need something new.

Now the Navy is working on something called the Replicator initiative, which isn’t simply going to field a bunch of drones; it’s going to turn all of the major surface combatants into drone manufacturing centers, so they can kick out dozens of these things in a few hours, is the theory. And if that happens, you get some serious drone-on-drone action. While using a jet ski against a capital ship is a big bang for your buck, using a small drone against a large drone is an even bigger bang. So, according to the Navy, within two years, Replicator should be online, at least in a prototype fashion. We’ll see what it looks like then. It’s all a question of whether or not the existing naval powers can innovate at the speed that the upstarts are. I can tell you this for sure: they’re putting a budget behind it because they don’t want to lose those big boats.

All right, that’s it for me. Until next time.

The Mexican Cartels Are Double-Dipping in the Guacamole

*This video was recorded during my backpacking trip through Yosemite in the end of July.

Unless you want to start buying your guacamole in dime bags, the US better start looking for some new avocado “dealers”. Yes, we’re talking about the cartels’ involvement in the avocado supply chains in Mexico.

Mexican cartels like Jalisco New Generation and La Nueva Familia Michoacán (which is allied with the Sinaloa cartel), are heavily involved in avocado production through protection rackets. While these cartels have different strategies, the bottom line is that any cartel involvement is dangerous to the sustainability of avocado exports.

As the cartels’ presence worsens, the US better start looking elsewhere for their avocados.

Prefer to read the transcript? Click here

Here at Zeihan On Geopolitics we select a single charity to sponsor. We have two criteria:

First, we look across the world and use our skill sets to identify where the needs are most acute. Second, we look for an institution with preexisting networks for both materials gathering and aid distribution. That way we know 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. Then we give what we can.

Today, our chosen charity is a group called Medshare, which provides 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. Until future notice, every cent we earn from every book we sell in every format through every retailer is going to Medshare’s Ukraine fund.

And then there’s you.

Our newsletters and videologues are not only free, they will always be free. We also will never share your contact information with anyone. All we ask is that if you find one of our releases in any way useful, that you make a donation to Medshare. Over one third of Ukraine’s pre-war population has either been forced from their homes, kidnapped and shipped to Russia, or is trying to survive in occupied lands. This is our way to help who we can. Please, join us.

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Transcript

Hey, everybody. Welcome to my favorite new party pad on Middleburg Lake in Yosemite National Park, right alongside the Pacific Coast Trail. For the people who actually have to follow the trail. Anyhow, I figured it would be a great time to talk about the geopolitics of everyone’s favorite party. Favorite guacamole? We’re having a problem with avocados. It seems that the Mexican cartels are starting to run protection rackets.

It’s worse than it sounds. There are two groups doing most of the work and inhibiting production. The first, one of the new generation cartels, if you remember from previous works, are, well, there’s some bad characters. Their leader is a guy by the name of El Chapo who basically believes that the first thing any self-respecting cartel should do is go into town, walk right into the police office in broad daylight, and kill a few people.

As a result, this violence-first approach doesn’t make it very easy for someone to ally with them, but it does make everybody pretty scared of them. And the growers of avocados have had to form self-protection forces in an attempt to fend them off.

The second group is—let’s see if I get this name right—Lander Weaver Familia Michoacán. The new Michoacán family. Michoacán is the state where most of the avocados in Mexico come from.

Anyway, they are a relatively new arrival, but they are definitely allied with the Sinaloa cartel. Who are the primary competitors? To help this new generation nationally, the deciding factor about the Sinaloa alliance is significantly different. It’s not that they’re any less violent; they just use violence as a means to an end rather than as an end in itself. As a result, they have a real fondness for going out and diversifying their operations, basically trying to get into anything that allows them to launder money and agriculture, especially things that are shipped in raw form to the United States, like avocados.

Fits the bill. So you’ve basically got a group that’s hyper-violent and just looking for cash versus a group that is a little bit more selective with their violence. They’re the nicest mass murderers and drug runners you could ever meet. But they prefer a more corporate approach that is more, what’s the word I’m looking for?

Corrosive to the economy. And these are the two choices that the locals have to deal with. Ergo, the self-protection forces. Anyway, you should not expect this to get better anytime soon. In fact, you should expect it to get worse. You can make the argument that a few years ago, Americans had the opportunity to quit cocaine and destroy the cartels.

But now that they’ve diversified into really any sort of illegal operations, especially if it’s cash-heavy, it’s probably too late for that. I mean, don’t get me wrong; you should still not take cocaine. That’s at least half of their revenues. But we’re now in a situation where something like 10% to 15% of the tequila in Mexico is paying protection money to one of the cartels.

The biggest thing I can underline here is that while I’ve mentioned the two big alliances—remember La Familia—there are a lot of local cartels now that are part of these broad umbrellas. And because of that, we now have local groups doing shakedowns of everyone and everything for everything. And because of that, it is probably time to start looking to North Carolina for your avocados, which definitely means you’re not going to be getting them all year round.

They don’t travel well. I don’t have any here.

Can the Six-Day Work Week Save Greece?

*This video was recorded during my backpacking trip through Yosemite in the end of July.

How would you feel if you had a beautiful view of the coastline, but could only ever get out by the beach once per week? Well, now that employers can mandate a six-day work week in Greece, many are faced with that exact problem.

We’re all aware of Greece’s economic struggles over the past few decades, but that instability has been amplified by demographic problems. As the Greek government attempts to balance out economic activity (made up of consumption, production, capital and labor), they’ve chosen labor as the factor that will have to compromise. Obviously a six-day work week is going to piss off some people, but what else can they do?

We’ve seen countries like Japan, South Korea, Italy and Germany face similar problems and combat them in different ways, but the outcome for each country is still uncertain. As for countries who haven’t hit the decision point, like the US and Mexico, they can observe each of these countries’ tactics and draw learnings from each.

Prefer to read the transcript? Click here

Here at Zeihan On Geopolitics we select a single charity to sponsor. We have two criteria:

First, we look across the world and use our skill sets to identify where the needs are most acute. Second, we look for an institution with preexisting networks for both materials gathering and aid distribution. That way we know 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. Then we give what we can.

Today, our chosen charity is a group called Medshare, which provides 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. Until future notice, every cent we earn from every book we sell in every format through every retailer is going to Medshare’s Ukraine fund.

And then there’s you.

Our newsletters and videologues are not only free, they will always be free. We also will never share your contact information with anyone. All we ask is that if you find one of our releases in any way useful, that you make a donation to Medshare. Over one third of Ukraine’s pre-war population has either been forced from their homes, kidnapped and shipped to Russia, or is trying to survive in occupied lands. This is our way to help who we can. Please, join us.

Support medshare's ukraine fund
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Transcript

Hey, everybody. Peter Zeihan here, coming to you from just below Matterhorn Pass where I just came from. Tomorrow’s project is over there, that’s Dog Head Peak. And then this is the Finger Head Peak, which I will not be doing because I’m not that crazy. Anyway, I copied the entire via, asked Peter, formed my phone before embarking on this trip.

And while some of you have some very strange questions, one that popped up, which I thought really tied some themes together, was something going on in Greece right now. The government has recently approved that employers can force employees to work six-day work weeks. And you’re like, Greece? That Greece, the Greece that spent itself into oblivion 15 years ago?

The Greece that had the hard left governments that basically refused to pay debt? Well, yeah, they’ve been beaten into shape now, but this is a whole new level. Every economic model, it doesn’t matter if it is laissez-faire capitalism, European socialism, Chinese fascism, Biden debt-driven New Dealism, or Trumpian Peronism, doesn’t matter what it is.

All of them are about managing the differences and the communications between the four major pillars of economic activity: consumption, production, capital, and labor. Different systems will favor different methods. So, like, socialists generally go more for labor, capitalists generally go more for capital, just for example. It’s in the name. What’s happened in Greece is that they are running out of those four pillars.

Part of this is a series of very, very, very bad government and financial decisions that date back to the 1990s. Remember, the Greeks had the largest bailout in EU history and indebted themselves to something like 140% of GDP. The bailout to pay it back is going to take them decades, so the capital side of the equation was already all wonky for them.

The second problem is demographic. The birth rate in Greece has been below replacement levels for in excess of a half-century, and they’re simply running out of people under age 45 to do the work, much less have children. With these two forces completely out of whack, all that’s left is supply and demand in an economy that has been in and out of recession now for 15 years.

That’s not great. So what we’re seeing is the government trying to take a brokering role to decide which one of those four forces—supply, demand, capital, and labor—has to be crunched down so the other three have a chance to work. And this government has chosen labor. That will obviously generate some political problems. I don’t mean to suggest that it won’t.

The Greeks are hardly the only country that is in this situation, and despite all of their many, many differences, I would say that the country in the world that is second closest to having to make these sorts of hard choices is Japan. Demographically, they’re the oldest country in the world and the fastest aging. From a debt point of view, they have been running massive, Greek-style, Biden-style, Trump-style budget deficits now for 30 years.

And if you take into account things like pension arrears and local debt, which I think you should, you’re talking about a debt that is somewhere between 450 and 500% of GDP. So, you know, whenever you look at a country and think, “Oh wow, their debt’s bad,” look at Japan. The Japanese have used what capital they do have to try to find technological solutions for some of these problems.

Getting people to work later in life, for example. What the Greeks are doing and what the Japanese are doing are very much projects in progress. We have no idea if it’s going to work, because, remember, we’ve never, ever been in this position as a species before. We’re looking at the fundamental, the bedrock—we’ve got a little bit of the bedrock of what makes our economic structures work.

Turning inside out. And we are going to have to find a new way forward. For this, I would not necessarily look to Greece and Japan. I mean, for the experiment, yes, watch them closely. But I would look for the more robust countries that are more internationally involved and have a more dynamic economy. The top of my list is going to be Korea, which is aging much faster than Japan.

I need to correct myself there. Japan is no longer the fastest aging country in the world; they may just be down to, like, 10th. Korea is in the top five. I would look at Italy so you can get a European example as well. They’ve been below replacement level for 70 years.

And then, of course, look at Germany. Germany has had a number of issues in its past when the economic model no longer functioned, and things got delightfully lively. So, that’s it for me today. Keep an eye on these countries as they try to redesign themselves. It’s not all going to go well. If you happen to be in North America, keep in mind that the United States is furthest from this problem for demographic reasons.

Our demographics have been stronger than everybody else for quite some time, and Mexico has the best demographics in its peer class. So Mexico City and Washington get to watch everybody else and see how they stress over this, and hopefully, we will learn something from that.

Myanmar’s Bleak Future: Civil War and Ethnic Strife

Myanmar doesn’t often catch my attention, but with the ongoing civil war, I figured it was time to throw it into the mix. After years of civil unrest, is there a clear path to stability?

A quick look back at Myanmar’s history will show a fractured population divided by demography and ethnic lines. The majority is made up of the Burmese people, which comprises two-thirds of the population. The Burmese live in the most favorable location and have the best infrastructure.

The Burman majority currently also makes up the vast majority of the military, which is the backbone of the ruling junta. In addition to stymying domestic democracy movements and mismanaging the country (and its resources, and its economy), the pro-Burman regime has a long history of abuses against various minority groups. These groups have increased their violent confrontation with the junta in recent years, and the military has struggled to retain control.

So, after 15 years of civil unrest and conflict, can they see the light on the other side? Unfortunately, the future remains bleak until there is some form of political resolution to regain control of the country and the disconnected population.

Prefer to read the transcript? Click here

Here at Zeihan On Geopolitics we select a single charity to sponsor. We have two criteria:

First, we look across the world and use our skill sets to identify where the needs are most acute. Second, we look for an institution with preexisting networks for both materials gathering and aid distribution. That way we know 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. Then we give what we can.

Today, our chosen charity is a group called Medshare, which provides 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. Until future notice, every cent we earn from every book we sell in every format through every retailer is going to Medshare’s Ukraine fund.

And then there’s you.

Our newsletters and videologues are not only free, they will always be free. We also will never share your contact information with anyone. All we ask is that if you find one of our releases in any way useful, that you make a donation to Medshare. Over one third of Ukraine’s pre-war population has either been forced from their homes, kidnapped and shipped to Russia, or is trying to survive in occupied lands. This is our way to help who we can. Please, join us.

Support medshare's ukraine fund
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Transcript

Hey everybody, Peter Zeihan here, coming to you from Colorado. We are in the first full week of August, and today we’re going to talk about a place called Myanmar. We’ve had a lot of military activity there in the region—there’s basically a civil war going on. The rebels have captured a major military facility in one of the regional capitals.

First of all, what is Myanmar? Myanmar is a country that used to be called Burma. It is sandwiched between the Indian subcontinent and Southeast Asia. It’s primarily mountainous, primarily jungle, but cutting through the middle of it is the Irrawaddy River, which is actually a navigable riverway, much like the Mississippi or the Rhine. And so it’s a huge push for commerce right there.

The population, of course, as you would expect from jungles and mountains, is fractured. The core population, the Burman or the Burmese, is based on what your ethnicity is and runs right along the river, right in the lowlands. This is the most economically viable area, where most activity happens, where most agriculture happens. They make up about two-thirds of the population, and they are large and in charge.

They have also had a succession of governments under military and civilian rule that are kind of pricks and treat everyone else as disposable. Before you even consider that mountainous people and jungle-living people are a little ornery, there’s plenty of reason for all the other ethnicities in Myanmar, or Burma, to be at odds with the Burmans. And so we have basically been in an increasing state of civil breakdown, and now civil war, for the last 15 years.

There are over 100 other ethnicities—none of them make up more than 10% of the population—but all of them have their little areas that they’ve carved out, big into smuggling, big into heroin, because these are things that you can do when the center cannot hold. I phrased that wrong. The center can hold—the center can hold the center—but it has a real hard time pushing power into the provinces and the edges, where everybody else is.

The problem is that all the borders are porous, development is limited, and what infrastructure exists is largely limited to the Burman areas in the lowlands around the Irrawaddy. This, unfortunately, is becoming the new state of affairs. The Burmans have mismanaged their affairs under civilian and military rule—it’s currently military rule—to the point that relations with pretty much all of the ethnicities have broken down.

And while there’s a civil war on one hand, there is also, because of military rule, a pro-democracy push across the country that is weakening the government from within. So if the center holds but nothing else, you’re basically looking at this giant U of territory in the northwest and east becoming stateless in the traditional sense. This is how it’s going to remain until such time as someone is able to consolidate power.

That could be a change of government among the Burmans, who could maybe do some sort of national reconciliation. But I don’t see anyone alive in the political system right now who is capable of that. Or it could be a third party coming in and knocking some heads together. The only country in the region that has that capacity would be China. And while the Chinese are okay with Myanmar being weak, they are not okay with being the power that has to come in and take over the security situation, because it would be just as hard for them as it has been for the Burmans.

So unfortunately, despite a reasonably favorable geography in the core, this is a country whose time has not yet come and will not until we can have some sort of political resolution, which does not, unfortunately, appear to be on the horizon. All right, that’s it. Bye.

Tensions Rise in the Middle East, But Don’t Expect War

There’s no shortage of news coming out of the Middle East, but today we’re going to look at the rising tensions between Israel and Iran and Iranian proxy Hezbollah.

While we’ve seen multiple attacks between Iran and Israel (and Hezbollah is poking around as well), a broader war is unlikely. Each of these players is preoccupied and has bigger fish to fry. Israel with Gaza, Hezbollah integrating with the Lebanese government, and Iran having to manage an increasingly complex domestic political environment.

The big news is obviously Israel’s assassination of a Hamas leader in Tehran, but there’s been a handful of back-and-forth attacks between the two countries. While Israel isn’t likely to topple the Islamic Republic via its targeted assassination campaigns their successes have resulted in rising domestic criticism of Iran’s Revolutionary Guards.

Tensions—and attacks—between Israel and Iran/Hezbollah will almost certainly continue, but in terms of a major conflict or significant policy change…I wouldn’t expect much.

Prefer to read the transcript? Click here

Here at Zeihan On Geopolitics we select a single charity to sponsor. We have two criteria:

First, we look across the world and use our skill sets to identify where the needs are most acute. Second, we look for an institution with preexisting networks for both materials gathering and aid distribution. That way we know 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. Then we give what we can.

Today, our chosen charity is a group called Medshare, which provides 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. Until future notice, every cent we earn from every book we sell in every format through every retailer is going to Medshare’s Ukraine fund.

And then there’s you.

Our newsletters and videologues are not only free, they will always be free. We also will never share your contact information with anyone. All we ask is that if you find one of our releases in any way useful, that you make a donation to Medshare. Over one third of Ukraine’s pre-war population has either been forced from their homes, kidnapped and shipped to Russia, or is trying to survive in occupied lands. This is our way to help who we can. Please, join us.

Support medshare's ukraine fund
Support medshare's global efforts

Transcript

Hey everybody, Peter Zeihan here. Coming to you from Colorado today to popular acclaim, we are going to talk a little bit about what’s going on in the Middle East of late. There has been a lot of tit-for-tat attacks across the region, with the Iranians broadly on one side and the Israelis on the other, Hezbollah somewhere in the middle.

And the question really comes down to whether or not we’re going to be seeing a broader war here. Punchline? Probably not. Israel has its hands full in Gaza. It really doesn’t want a wider conflict. Hezbollah, which is the militant group that, from certain points of view, facto runs Lebanon, definitely does not want its position overthrown because it’s no longer a pure terror group.

It actually is more or less the government, and that means it has exposures that are a lot easier to be exploited in a direct war, as opposed to a terror group, which can just go to ground. They’re much more vulnerable because they’re much more powerful. And then third, in Iran, they’re trying to go through a political transition. They’ve got a new president, and the Supreme Leader who makes all the real decisions is older than Biden.

And we know that he doesn’t have much time left either, so they don’t want the disruption that a major war would cause as well. The problem, of course, is that the Middle East, to put it in Western terms, is basically like a barroom argument and that everybody wants to have the last word. So in the last few days, the Israelis have assassinated Ismael Haniya, who is a Hamas political leader who was in Tehran, and they assassinated him in Tehran.

So the Iranians are furious, obviously, and feel that any idea that you can provide security for your own allies in the region, but not you can’t even do it at home, makes them look incredibly weak. So they feel they need to strike back, so they probably will. But remember, what preceded this was Iran leaning on Hezbollah to fire a bunch of rockets into Israel.

And so before that, the Israelis killed a Hezbollah commander in Beirut. And it’s just it’s been back and forth, back and forth, back and forth. Everyone wants the last word. Nobody wants a war, but everybody wants the last word. It’s not the most perfect picture for strategic stability, but I have to remind you that this is what the Middle East looks like on a good day.

And of late, the Middle East has had a lot of good days as long as the major players, Hezbollah, Israel, and Iran in the situation don’t feel that they would benefit from a wider conflict. All we get are these sort of high-profile blam back-and-forths. Everyone is seeking to close the argument. It’ll never close, but it also means the violence is unlikely to rise to a certain level above what is basically, for the rest of the world, a degree of background noise.

Okay, so the other thing to keep in mind on this is now there is a discussion going on internally in Iran. As I mentioned before, a new president, the Supreme Leader is failing. One of the things that we have seen since the Iraq war back in 2003 is that Iran has more and more and more given a free rein to the IRGC, which is basically their paramilitary arm, who controls large chunks of the economy at home and is basically in charge of shooting people abroad.

And as they’ve been given a longer and longer reach, they’ve basically indulged in every little fantasy they possibly could, when it comes to revenge and picked fights with everyone. Well, that’s coming home to roost now. That’s one of the reasons why the Israelis have dropped the hammer on Iranian interests here and there of late. Well, there’s a discussion now going on in Iran about whether or not they’ve gone too far, whether they’re causing more problems than benefits, whether they’ve become too important of a power player on their own, whether they’re breaking away from the clerical establishment and starting to set policy.

Now, these are all reasonable conversations. And in a normal country, these conversations would be front and center. In a place like Iran, where democracy is a, how shall we say, limited, it’s interesting that it’s finally boiled up. And it took the humiliation of the Haniya assassination on their home turf to kind of underline it to Iran about how bad the IRGC has gotten.

Now, you shouldn’t expect a singular decision here to suddenly change the math. The person who matters in Iranian politics is the Supreme Leader. And if he feels that the IRGC has gone too far and needs to be reined in, he will have to do something about that. But like I said, he is failing. So we are probably going to see a cosmetic continuation of the tit-for-tat with Iran.

It’s their turn. But back at home, we’re probably going to see a significant amount of instability and shifting as the various players and most notably the Supreme Leader actually have to make some really hard decisions about the future of the country. And for the Supreme Leader, this is also about legacy. And he probably doesn’t want his last legacy to be like taking a hammer to the IRGC. Anyway, exciting times, but probably not a war.

Protests Cause a Mass Exodus of Bangladesh

This is a follow-up video to the one I sent out on July 23 – linked below.

Major Protests Break Out in Bangladesh

The situation in Bangladesh has worsened, forcing the Prime Minister to flee the country. Let’s recap what led us to this point and look at what the future might hold for Bangladesh and India.

The youth in Bangladesh began protesting the lack of job opportunities, since government jobs were reserved for those who fought in the revolution and their descendants. The alternative jobs available are working in the textile industry for pennies or risking their lives ship breaking. Not a ton of solid opportunities…

A history of corruption and political incompetence has led the Bangladeshi people to this point, and taking a page out of the Prime Minister’s book wouldn’t be the worst idea for many. That means millions of refugees could be fleeing Bangladesh and most of them would likely be heading to India. But is Modi’s government ready to handle this kind of international crisis?

India hasn’t had to to deal with many international incidents in recent years, so they lack the infrastructure and resources to effectively manage a major crisis like this. When millions of people come knocking on the border door, it will definitely be cause for concern for the Modi government.

Prefer to read the transcript? Click here

Here at Zeihan On Geopolitics we select a single charity to sponsor. We have two criteria:

First, we look across the world and use our skill sets to identify where the needs are most acute. Second, we look for an institution with preexisting networks for both materials gathering and aid distribution. That way we know 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. Then we give what we can.

Today, our chosen charity is a group called Medshare, which provides 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. Until future notice, every cent we earn from every book we sell in every format through every retailer is going to Medshare’s Ukraine fund.

And then there’s you.

Our newsletters and videologues are not only free, they will always be free. We also will never share your contact information with anyone. All we ask is that if you find one of our releases in any way useful, that you make a donation to Medshare. Over one third of Ukraine’s pre-war population has either been forced from their homes, kidnapped and shipped to Russia, or is trying to survive in occupied lands. This is our way to help who we can. Please, join us.

Support medshare's ukraine fund
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Transcript

Hey, everybody. Peter Zeihan here. It is August 5th. And the Prime Minister of Bangladesh, Sheikh Hasina, has fled the country after nationwide riots which have killed a few dozen people. This started out as a group of young people who were basically desperate for jobs. Government jobs are basically guaranteed to people who fought in the revolution or their descendants.

And if you’re not one of those people, you’re kind of out of luck because all that’s left in the economy is becoming a wage slave for the textile industry. And when I say wage slave, I literally mean wage slave and horrible, horrible conditions. Basically, we’ve decided to get rid of sweatshops, and so everything just went to Bangladesh, or to do an incredibly dangerous job, which is called shipbreaking, which takes old vessels, physically breaks them down, and then recycles the steel.

Very easy to get maimed doing that job. Anyway, that’s it. That’s the entire Bangladeshi economy. And, anyway, what started out as protests about jobs basically spread to include concerns about corruption and incompetence. And, if you’re looking for corruption and incompetence, Bangladesh is the place for you. You basically have a couple of political parties that have switched back and forth, back and forth, back and forth over the course of the entire existence of the country since the 70s, turning everything into a patronage network.

So we had a period, you know, 15, 20, 25 years ago where most services for most of the population were not provided by the government because that was all corrupt. You basically had foreign NGOs coming in to do social services. Well, over the last 20 years, those NGOs have basically been brought into the patronage network.

And so most of them stopped operations, and the ones that remain are not exactly doing a lot of great work. So there’s nothing going on here from a positive point of view, from a community point of view, except for generating most of the world’s ready-to-wear knitwear. So, for example, if you’re into fast fashion, you are taking advantage of the near-slave conditions in Bangladesh and massive corruption.

So congratulations to you. Anyway, where does this bring us? Well, this is a country of 100-odd million people, and it’s on a very small footprint of land with very few economic opportunities and almost no resources. Agriculture is largely subsistence, and the government has now failed. Neither of the political parties are in a position to take up governance.

I mean, the ruling party just lost the Prime Minister. They don’t know anyone who’s less corrupt in the ranks. And the opposition is fractured, to say the least. They do have a history of having military coups and military rule from time to time. But one of the positive—if that’s the right word—things the most recent government has done is gutted the military to make military coups less capable.

So the military probably doesn’t have the skill set that’s necessary to take over. So barring some sort of surprise breakthrough and an internal knight in shining armor, which I have a hard time envisioning, we’re probably going to see a lot of economic destitution and civil breakdown, which means we’re probably going to see millions of refugees and immigrants leaving Bangladesh for some other place.

Here’s the thing: the only land border that Bangladesh has is with India. So in India, we’ve got a government under Modi who has been in control now for well over a decade. But he hasn’t faced an international crisis at all. There are really only two countries that matter in terms of nearby relations. One is Pakistan—a nuclear threat—a few wars in the past, but relations there have been pretty calm. Most of the drama has been on the Pakistani side of the equation, which has kind of kept Pakistan bottled up in its own juices and allowed the Indians to relax a little bit. And the other one is Bangladesh, which has also been calm until now.

So the Modi government, unfortunately, doesn’t have a lot of experience in dealing with crises because there hasn’t been one in the last ten years. And now you’re talking about an economic one where you’re talking about a surge of people potentially coming into India, that India simply doesn’t have the facilities, the infrastructure, the capital, or the jobs in order to absorb these people competently.

There’s also the issue that the Modi government has very few connections to the Bangladeshi government. Yes, in past years, there have been reasonably strong connections between Indian governments and the Bangladeshi parties. But most of that was under Congress, which is now in opposition. So we get kind of a double crisis here, with Bangladesh potentially falling apart and with India not really having the traction it needs to deal with the situation in a meaningful way.

So a lot of moving pieces in this, and none of them are really moving in the right direction, but we’re going to find out real soon what the Modi government is made of when it comes to an international issue that actually matters to it right on its own border, as opposed to dealing with some sort of nonaligned movement issue that has broader political connotations around the world but is mostly about atmospherics.

I mean, this is where the rubber is going to hit the road, and we’re going to find out real soon.

Did the Russians Really Not See This Ukrainian Advance Coming?

A Ukrainian soldier advances with an AK 47

Peter’s currently hiking beyond the reach of standard comms, so no video, but he’s still keeping abreast of recent developments in Russia and Ukraine.

Ukrainian forces are currently involved in a push into Russian territory, centered on advancing toward and beyond the border town of Sudzha. No apologies necessary if you’ve never heard of Sudzha—a town of less than 7,000 people—but Ukrainian forces likely did not choose it at random.

While the situation is still murky, Ukraine’s forces seem to have basically seized the town of Sudzha overnight on August 5th and 6th,and are moving toward Lgov (a town of less than 25,000 people). There are some logistical gains here and pressure points for the Russians: a significant natural gas metering station near Sudzha, some road access across the border to Ukraine. But the real goal here is likely securing Sudzha and Lgov and securing both sides of the Seym River.

Sudzha and Lgov also afford the Ukrainians excellent access to highway systems to regionally significant and import logistical hubs in Kursk and Belgorod. An ability to take the fight from eastern Ukraine to places like Belgorod would mean that Russia’s invasion has a second front not only within its own territory, but defending the logistical supply hubs vital toward supporting its efforts within Ukraine.

The Russians seems to have been surprised with the speed and success of Ukraine’s efforts, but long-time subscribers will note that we have highlighted Russian vulnerability vis-a-vis Belgorod and supplying the war effort more than once. We are including links to previous coverage and analysis on this issue below.

MAY 11, 2023
Ukraine War Updates Part 3: What’s Next for Russia

 

When a country views a conflict as existential, putting a timeline on it is nearly impossible. So no matter how well (or bad) this Ukrainian counter-offensive plays out, we are only at the beginning of a long, drawn-out war.

For the Russians, war doesn’t stop in Ukraine; it stops once they have captured enough land or territory deemed critical to their survival. So we’re no longer talking about Kyiv or Crimea…we’re talking about Russia moving west and trying to occupy former strategic positions the Soviets held, like Warsaw.

So what does that mean for the Ukrainians? If they are going to stop the Russians from waging war again, not only do they need to take back all of their lands…they need to take the fight to the Russians.

No matter how the Ukraine War plays out, we are looking at an extreme breakdown of the security order. Either Russia emerges victorious, and a confrontation with NATO is in the cards – OR – Ukraine comes out on top and sends the Russian State down a path of disintegration.

Map showing Russian Transportation lines

 

MAY 16, 2023
Ukraine War Q&A Series: Why Does Russia Have Oil Supply Issues?

 

The second question of the Q&A series is…if Russia is such a massive producer of oil and oil products, why are we wasting time discussing supply issues?

The Russian oil problems are best understood when compared to the American system. If you compare California and New York gas prices to those in Texas or Alabama…you might have a heart attack. Outside of the crazy taxes in CA and NY, this boils down to transportation.

Like CA or NY, most Russian oil is produced in one area, refined in another, and then needs to be shipped to its final destination. For the Russians, thousands of miles separate each of those steps. To complicate this supply chain even further, most of this stuff must be trucked into Ukraine since the Kerch Strait Bridge rail capabilities are gone.

The Ukrainians are fully aware of this shortcoming and are now focusing much of their firepower on oil transportation and infrastructure. Destroying refineries is easier said than done, so I would expect the main targets to be fuel tanks, fuel trains, and the occasional pipeline.

 
MAY 26, 2023
Russian Partisans Attacked the City of Belgorod

 

A group of ethnic Russians opposed to Putin’s government joined forces with Ukraine and launched an assault across the border into the city of Belgorod. There are three main takeaways from this cross-border attack.

Russia didn’t bother garrisoning its logistical centers along the Ukrainian border. While this assault was quickly put to rest, this will be crucial as Ukraine launches more attacks in the coming weeks and months.

We’re going to hear a lot more about Belgorod in the future. It’s one of the critical points the Russians use to launch assaults into Ukraine. For Ukraine to “win“ this war, Belgorod will need to be neutralized, one way or the other.

The final component is that these are ethnic Russians…fighting against Russia…in Russia. So this little hiccup might throw a wrench into some of those “for the Russian people” propaganda pieces that Putin is pushing.

As I’ve said before, the Russians will continue pushing this war until they can’t, and if Ukraine wants to win, they’ll eventually have to cross the border. These partisans may have just answered how that might be carried out.

 
JUNE 3, 2024
Ukraine Opens Up on Belgorod

 

From the beginning of the Ukraine War, the Western nations have placed restrictions on how their weapons donations to Ukraine can be used. Specifically, Western nations have been concerned that if Ukraine targets Russian forces within Russia, escalation may be unavoidable. But recent events have forced a change of calculus in the West.

Less than 48 hours after NATO gave Ukraine the right to use those donated weapons against Russian targets within Russia, Ukrainians opened up on Russian military assets in and around the Russian city of Belgorod.

It’s too soon to assess damage, but the lack of Russian counterattack suggests Ukraine will soon be able to attack Russian forces wherever they can be reached. Regardless of the weapon systems Ukrainians are using.

 
JUNE 17, 2024
Why Did Russia Choose Invasion Over Nukes? || Ask Peter

 

For years I’ve warned that a war between Russia and Ukraine was inevitable, but why didn’t Putin just play the nuke card? As an add-on, we’ll also be touching on some new Russian alliances that could rub the US the wrong way.

The Russians are no strangers to wars and territorial expansions, so despite having nukes, they still prefer their tried and true method of occupation. This may seem foolish given their nuclear capabilities, but the Russian goal is to establish a buffer they control easily, not a zone they have to patrol wearing hazmat gear.

The Ukraine War has also brought up conversations of Russian alliances with some unsavory characters, i.e. North Korea, Iran, and China. I’m really not too worried about these alliances either. The logistics alone make them all deal breakers.

The conversation about the American-led global order being disrupted is less about Russia’s moves and more about how the Americans decide to proceed with their global strategies.

 
JUNE 18, 2024
Ukraine: F-16s, Offensives, and Abject Humiliation

 

Ukraine is gearing up for one of its most important offensives to date, but what makes this one so different from the rest?

The main driver of this offensive is a delivery of F-16s from NATO, which was preceded by some large arms packages from Europe and the US. Now this is all very exciting, but we’re still a little ways out from this going down. In the meantime, Ukraine will be laying down the groundwork to help ensure that this offensive can successfully break through the stalemate that has defined much of the battlefield this year.

So what does that groundwork look like? You can expect to see Ukraine ramp up its strikes on Russian air defenses all throughout the occupied territory and even deep into Russia and Crimea. This will (hopefully) allow the Ukrainians to establish regional air superiority and use those F-16s to their full capabilities.

It doesn’t mean Ukraine will be flying into Moscow tomorrow and ending the war, but cutting off Russian logistics in Crimea and other areas could cause significant losses to Russia – and Putin’s ego. Expect further updates once all of this kicks off.

Here at Zeihan On Geopolitics we select a single charity to sponsor. We have two criteria:

First, we look across the world and use our skill sets to identify where the needs are most acute. Second, we look for an institution with preexisting networks for both materials gathering and aid distribution. That way we know 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. Then we give what we can.

Today, our chosen charity is a group called Medshare, which provides 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. Until future notice, every cent we earn from every book we sell in every format through every retailer is going to Medshare’s Ukraine fund.

And then there’s you.

Our newsletters and videologues are not only free, they will always be free. We also will never share your contact information with anyone. All we ask is that if you find one of our releases in any way useful, that you make a donation to Medshare. Over one third of Ukraine’s pre-war population has either been forced from their homes, kidnapped and shipped to Russia, or is trying to survive in occupied lands. This is our way to help who we can. Please, join us.

Support medshare's ukraine fund
Support medshare's global efforts

US Border Crossings: Is Mexico the Solution?

It’s time that we discuss the situation at the US – Mexico border. What’s going on and how is it all going to shake out?

Over 2 million people crossed the border illegally last year. Crossings appear to have been decreasing over the past six months thanks to executive orders by President Biden (although, they were first part of a Republican proposal). While these crossings might be happening via Mexico, the majority of those entering the US illegally are not Mexican.

These migrants are coming from Central American countries like Honduras and Nicaragua, as well as countries like India, Russia and China. While some of these people used to enter legally, policy changes have forced them to cross via more illicit means. Physical barriers can only do so much in preventing these crossings, so it may be time to explore political solutions.

Since most of these migrants are entering through Mexico, that should be the first line of defense. Discussions between Mexican President Andrés Manuel López Obrador (Amlo) and President Biden have led to positive trends in managing border crossings. However, this issue is constantly evolving and will require much more than a big wall and soft handshakes to sort out.

Prefer to read the transcript? Click here

Here at Zeihan On Geopolitics we select a single charity to sponsor. We have two criteria:

First, we look across the world and use our skill sets to identify where the needs are most acute. Second, we look for an institution with preexisting networks for both materials gathering and aid distribution. That way we know 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. Then we give what we can.

Today, our chosen charity is a group called Medshare, which provides 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. Until future notice, every cent we earn from every book we sell in every format through every retailer is going to Medshare’s Ukraine fund.

And then there’s you.

Our newsletters and videologues are not only free, they will always be free. We also will never share your contact information with anyone. All we ask is that if you find one of our releases in any way useful, that you make a donation to Medshare. Over one third of Ukraine’s pre-war population has either been forced from their homes, kidnapped and shipped to Russia, or is trying to survive in occupied lands. This is our way to help who we can. Please, join us.

Support medshare's ukraine fund
Support medshare's global efforts

Transcript

Hey everybody, Peter Zeihan here, coming to you from hot and smoky Colorado, where we’re finally getting some much, much, much needed rain to put out the forest fires that are way, way, way too close. Anyway, I’m back for a couple of days, so I want to give you an update on what’s going on at the border.

Now, as we all know, over 2 million people crossed illegally last year. Whether that’s good, bad, or indifferent depends on your politics. From a rule of law point of view, it’s questionable at best. Politically, it’s untenable. But economically, if it hadn’t happened, we’d probably have 10% inflation because of labor shortages. So, pick your poison—what problem do you want to embrace, and which one do you want to work against?

Now that we’re into August, there are two big things going on. First of all, the number of apprehensions at the border has been steadily dropping for the last six months. This is largely due to a package of executive orders that Joe Biden enacted a few months ago. These include summary expulsions and much stricter rules on asylum. These measures were part of a Republican-sponsored project earlier this year to remake the border. The Democrats were forced into it, but then Donald Trump thought this would be a victory for Biden, so he told his allies in Congress to scuttle the deal. In response, Biden went ahead and imposed the Republican ultimatum as a series of executive orders. I don’t want to say it’s working—it’s too soon to know for sure—but tensions at the border have dropped by roughly a third during this time. We’re well below the high levels of detentions and crossings from last year, and preliminary data for July and August suggests that trend is continuing.

The second thing is that folks from beyond Central America are now making up a larger and growing group of those crossing the U.S. border. Remember, the majority of people crossing were from the failed or nearly failed states of Honduras, Nicaragua, and El Salvador. But now, there’s a significant number coming from other places, especially India, Russia, and China. These are people who used to come to the United States legally, but due to the lack of immigration reform through the Obama, Trump, and now Biden years, most legal pathways for immigrants have been closed. So now, people are just coming illegally, which means different tools are being used to regulate the flow.

Specifically, Biden has had a series of deep conversations with his counterpart in Mexico, President López Obrador (AMLO). Behind the scenes, they’ve quietly cut a deal where Mexico acts as the first line of defense. This makes it more difficult for people from those failed states to travel north. Once they get to the northern border, they’re put on buses and shipped back to the southern border. Secondly, Mexico is no longer accepting third-party visas for would-be immigrants coming from places like China. It used to be that you could fly from China to Mexico City and then come up, but not anymore. Now, they’ve been flying to places like Ecuador and trying to connect through to Mexico, but that doesn’t work anymore either. So, they’re trying to go through Bolivia or Africa, but now the Mexicans are saying unless you have a year-long multi-entry visa for all the countries on your trip, we’re just going to ship you back. This means all the countries where they used to start, like Korea, Japan, Vietnam, or Russia, are now having to take deportees on flights from Mexico City.

None of this would have been possible without having a conversation with AMLO. And AMLO is a difficult guy to have a conversation with—just ask Donald Trump. He banged his head against the Mexican administration for a couple of years early in AMLO’s reign. It hasn’t been any easier for Joe Biden, but after a fashion, we have the beginnings of a deal.

Will it work? For the moment, things are trending in a positive direction if you want to keep the border closed. But keep in mind, this border is 2,000 miles long. Even if the United States were to deploy its entire military to the border, that’s only enough people for one dude every 50 feet, assuming no one ever takes a break or sleeps. So, there has to be a political angle to any sort of border management. Simply building a wall won’t work because, as we found out in the early years of the Trump administration, if you can quadruple your income by using a ladder, well, you’re going to use the ladder. The wall hasn’t done much to inhibit people from crossing illegally.

However, a political deal, like the one we saw between Trump and AMLO and now between Biden and AMLO, which turns all of Mexico into a kind of a wall—that works a lot better.

Alright, that’s it for me. Take care.

Can Ukraine Claim the Skies and Destroy Russian Air Defenses?

A fighter jet flying through a cloudy sky

A forest fire near my home cut my backpacking trip short, but it did allow me to record some new videos. So, today we’ll be looking at some recent developments in Ukraine.

Ukraine is figuring out how to maximize the effectiveness of its weapons (both NATO-supplied and domestic), allowing them to strike deep within Russian territory. Some notable “hits” include destroying a strategic bomber and refinery, sinking a sub, and taking out numerous air defense systems.

These attacks will continue to weaken the Russians’ ability to defend against air assaults, making the arrival of F-16s from European allies all that more interesting. The goal is to achieve air superiority in key areas, even if it’s only temporary, and allow for more effective combined warfare.

This shift in tactics could lead to significant breakthroughs on the front lines, as Russia will be forced to pull back from their current positions. Whether the Ukrainians will be able to capitalize is a question that will have to wait…

Prefer to read the transcript? Click here

Here at Zeihan On Geopolitics we select a single charity to sponsor. We have two criteria:

First, we look across the world and use our skill sets to identify where the needs are most acute. Second, we look for an institution with preexisting networks for both materials gathering and aid distribution. That way we know 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. Then we give what we can.

Today, our chosen charity is a group called Medshare, which provides 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. Until future notice, every cent we earn from every book we sell in every format through every retailer is going to Medshare’s Ukraine fund.

And then there’s you.

Our newsletters and videologues are not only free, they will always be free. We also will never share your contact information with anyone. All we ask is that if you find one of our releases in any way useful, that you make a donation to Medshare. Over one third of Ukraine’s pre-war population has either been forced from their homes, kidnapped and shipped to Russia, or is trying to survive in occupied lands. This is our way to help who we can. Please, join us.

Support medshare's ukraine fund
Support medshare's global efforts

Transcript

Hey everybody. Peter Zeihan here, coming to you from Colorado. I was out backpacking, but there was a forest fire near my house, so I had to run back in. Anyway, it looks like it’s under control. We have some thunderstorms moving in, so I guess that’s a silver lining. Anyway, it gives you an opportunity to hear me talk about a couple of things that have happened in the few days since I’ve been back.

The first thing I’m going to talk about today is what’s going on in Ukraine. As you know, the Ukrainians have become more and more creative at using imported weapons from the NATO alliance, as well as some of their own homegrown stuff, to strike Russian targets further and further away. In the week around the 1st of August, just before and just after, a series of attacks took out a strategic bomber in Russia. Specifically, they hit a refinery deep within Russia, over a thousand miles from the coast, which started a really big fire. They also sank a Kilo-class submarine. You know, that’s a $300 million price tag that the Russians just lost. But the most interesting thing I’ve seen is that a series of attacks took out at least five S-400 air defense systems.

Now, the S-400 is supposedly the most sophisticated anti-aircraft system in the world, capable of shooting down missiles and all that good stuff. However, its reputation has definitely been tarnished in this war. And these aren’t the first ones that the Ukrainians have taken out. They’ve taken out at least another six, to my knowledge. The Russians only started the war with 50 to 56 of these systems, so we’re looking at somewhere along the lines of 20% of them being taken out, with probably a few more damaged as well. Using around 50 of these systems to provide full air defense coverage for the entire Russian mainland is already a stretch, and now they’ve lost 20%. This has escalated from being a tactical theater issue to a full strategic threat, as they’re losing the ability to maintain a periphery for air and missile defense across the entire space.

The Ukrainian goal here is very, very clear. If they can take out enough of these systems, especially in Crimea and to a lesser degree in the Donetsk region, then when the F-16s arrive—which are coming in from Denmark, the Netherlands, and a number of other European countries—the Ukrainians will be able to use their air power without the immediate fear of everything getting shot down.

One of the big problems they had last year when they attempted their counteroffensives was trying to do combined warfare using artillery, rocket systems, drones, men, tanks, and aircraft, which they didn’t have. Attempting a combined warfare project without the air component was a bit of a problem. The Russians were able to call in airstrikes and artillery support and cut up the Ukrainians as they were trying to advance. If enough anti-aircraft systems can be taken out of the equation on the Russian side, then even if the Ukrainians cannot achieve general air superiority, they can certainly achieve temporary air superiority over specific zones where it’s important.

This creates a very different sort of conflict where NATO trainers will prove immensely useful because that’s how NATO operates. Anyway, the first F-16s have been repainted with Ukrainian livery. They are in Ukraine now, and probably over the course of the next few weeks while I’m gone again, we’re going to see the first efforts by the Ukrainians to actually leverage their new air power in league with their ground power. We might see a crack in the line, specifically in the direction of Crimea.

In just the last week, the destruction of the S-400 systems has induced the Russians to evacuate a couple of their airbases, pulling all of the aircraft out because they can’t defend them. Obviously, in the short term, that’s great for Ukraine because it means these aircraft are now going to be flying from Russia proper, much further away. Moving forward, if the Russians lose the ability to do quick turnaround launches when the Ukrainians are operating, then the Ukrainians have that much more leeway in everything else.

Okay, that’s it. Take care.

The Garbage Time of History: China’s Economic Decline

*This video was recorded before Peter’s backpacking trip in mid-July.

Lesson of the day: if the Chinese government starts censoring a topic, it’s probably time to start looking into that. Today, we’ll be examining China’s economy heading into ‘garbage time’.

For the non-athletes that follow me, garbage time is a sports term that refers to the final minutes of a play when there is no chance for the losing team to recover, yet play must continue. So, if we apply that to the Chinese economy, it would suggest that China has crossed the point of no return.

If you trust the data coming out of China, the economy is stagnant and the demographic picture is grim. If you take your Chinese data with a grain of salt, the economy and demography of China are in a unrecoverable nose dive. So, to say that China is ‘laying flat’ and in ‘garbage time’ is no exaggeration.

If there was anything that might help China hold on, it would be strong international trade. Unfortunately, many countries are stepping away from deals with China and removing that last sliver of hope for the Chinese.

Prefer to read the transcript? Click here

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Transcript

Hey everybody. Peter Zeihan here, coming to you from Lost Valley in Colorado, just above Denver. Today we’re going to talk about a bit of Chinese censorship and the general downward spiral the Chinese find themselves in. I keep an eye on what the Chinese are banning because it gives you an idea of what Xi Jinping and the CCP in China are nervous about.

A couple of new terms have popped up on the ban list that I think are worth discussing because they put a few things into context. The first term is “garbage time.” For those of you who are sports enthusiasts, you might have heard of this term. It refers to the final minutes of a game when one team is so far ahead that it’s impossible for the underdog to catch up. They still have to play out the rest of the game before officially losing. In geopolitical terms, it’s a concept that emerged in the 2000s and 1990s, referring to the period after the Soviet invasion of Afghanistan in 1979 when it became clear that the system was broken and it was just a matter of time before the inevitable end.

The Chinese government doesn’t like this term because it implies that their system is fundamentally broken and that it’s just a waiting game until the end.

The second term is “laying flat.” This idea is that things are so broken and hard work will get you nowhere in a dysfunctional system, so you might as well do the least amount of work possible because there’s no reward for anything else. Again, this term is problematic for the Chinese government because it reflects widespread disillusionment.

These terms are indicative of the economic situation in China. The Chinese recently released new data, showing annual growth once again coming in under 5%. This has been the trend since 2019. Most experts believe that China’s government overestimated their GDP growth by about five percentage points since the 2010s, suggesting that for the past five to six years, China really hasn’t grown much at all. This is reminiscent of Japanese-style stagnation but with an economy that hasn’t advanced as far.

Recent demographic data from China indicates that they’ve lost another 8 million people under age five. The data now publicly admits that there are roughly the same number of people aged 50 to 70 as there are aged 0 to 25. This is significant because, ideally, the younger age group should be two to three times as large as the older group.

Independent demographers argue that China has overstated its population by 100 to 250 million people, particularly under age 40. This suggests that the 0 to 25 age group may be overstated by at least 80 million people, possibly closer to 150 or even 200 million. Most consumption in an economy is driven by people under age 40, who are the ones buying homes and raising children. If this next generation doesn’t exist in significant numbers, China can never achieve consumption-led growth again.

This makes China increasingly dependent on international trade, which is in the process of cutting China out of the global system. This started with Donald Trump in the United States and has now expanded with recent sanctions on things like electric vehicles to Europe, Turkey, India, Indonesia, and Brazil. The effort is going global. So, the last best hope the Chinese had for recovery is now over six years old, and it looks like there won’t be another one. People are beginning to notice.