Crumbling Infrastructure in the Russian Taiga

Today’s video comes to you from the Rockburn Track in New Zealand.

Terrain as you see in this video, doesn’t exist in many places, as it takes the right mix of altitude and humidity to form. However, this is very similar to the dominant vegetation in Russia’s northern Taiga.

This terrain makes it extremely difficult to build any form of solid infrastructure. In Russia, they wait until the ground freezes solid, then dig down to the permafrost and fill the hole with sand, gravel, or whatever else they have. This forms dikes or berms on which they can build roads, lay pipes, or install any other key infrastructure.

In a post-Ukraine War Russia, will this infrastructure come back online quickly? All of this infrastructure is old and barely hanging on, and now that the West won’t be involved anymore, I wouldn’t count on any of this coming back online for a decade (+).

Prefer to read the transcript of the video? 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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TRANSCIPT

Hey everybody. Peter Zeihan here coming to you from the Rockburn in New Zealand. And I just saw some vegetation that reminded me of something of significant import.

So behind me, you just have a normal tree stump, but it is covered in several inches of moss. You can see how my hiking pole really sinks into it. Terrain like this doesn’t exist in many parts of the world. You need just the right altitude and the right humidity in order for the stuff to grow in the first place. You’ve got it here in New Zealand, in the temperate rainforest. You’ve got it on Vancouver Island in northwest Canada. It exists in Manitoba, in what they call the Muskeg that is approaching the Arctic Ocean. And then it is also the dominant vegetation and some of the Taiga in northern Russia.

Oh, yeah, unstable ground. So it doesn’t really matter what the reason for a spongy ground, whether it’s moss or permafrost, happens to be, it’s very difficult to build artificial infrastructure. But if you want to do anything with the land, that’s what you’ve got to do. In the case of the Russian space, you’ve got that mushy, marshy top over what is ultimately permafrost, somewhere between five and 30 feet under the surface. And until you get to the permafrost, the frozen layer, everything is just goo. And so any infrastructure that you were to build in the summer would just sink into the swamp. So what they have to do is they wait for everything to freeze solid in the depths of the Siberian winter, and then they go and excavate it and then bring in rock and sand and gravel and aggregate and tar and everything else to build giant berms that go from the permafrost all the way up until you get these dikes that run over the landscape. Environmentally devastating, of course, but that’s never been something the Russians have really cared about. And then you can run roads and pipes and the such, over those berms.

So one of the things that people discuss, you know, in in a post Ukraine worst scenario, will we be going back into Russia in order to tap those resources again and, you know, even in the best case scenario where the government and the politics line up, you really should still count all the Russian stuff out for several decades because that’s how long it took to bring this stuff online. Western techs have been essential to maintaining output in the Russian oil and natural gas fields and their petrochemical center and their general industry since 1992. Because most of this raw infrastructure was built in the 1960s and it’s barely holding on by its fingernails now. And with the Western techs, the Western skills sets, the western capital gone. We’re seeing industrial accidents that are, let’s just say Soviet in scale.

So a lot of this stuff is going to have to be rebuilt and then you’re going to have to have a positive security environment that goes all the way from the point of production through hundreds, if not thousands of miles of permafrost to get to populated Russia and then finally to get out to the wider world. And that is not something you’re going to fix in three months or six months or nine months or ninety months. That’s a decade plus project minimum. And that’s a decade plus in which relations with Moscow have to be positive. So we should all kind of pencil in that materials coming out of the former Soviet space, specifically the Russian space, just aren’t going to be there for the foreseeable future. Until next time.

Russia Moves Nukes to Belarus

Today’s video comes to you from the shores of Lake Hawea with the famed Dingle Burn arm behind me.

Anytime Russia and nukes are mentioned in the same sentence…the world pays attention. But does moving your nukes to a new place inherently change your military posture?

In the case of Belarus, the answer is no. Russia already has nukes in Kaliningrad (further west than Belarus), so this isn’t “expanding” Putin’s military reach. Additionally, the Belarusian infrastructure sucks, so these nukes will likely sit around and collect dust (unless they’re sold on the open market, but that’s an entirely different conversation).

So what does moving Russian nukes to Belarus accomplish? Putin gets to bang on his chest a little, rally up the domestic nationalism machine, and ensure the internal political situation is still propping him up. As for international security issues, this doesn’t move the needle…at least for now.

Prefer to read the transcript of the video? 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.

CLICK HERE TO SUPPORT MEDSHARE’S UKRAINE FUND

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TRANSCIPT

Everybody. Peter Zeihan here coming to you from the shores of Lake Hawea with the famed Dingle Burn arm behind me. This is my favorite lake in New Zealand for the obvious reasons. And today we’re talking about Russia and nukes. So for those of you who have, you know, not been under a rock, the Russians have been threatening nuclear, this and that and everything since the Ukraine war started. But if you look back and look at the statements, you’ll know that sometime in mid-March of last year, Putin stopped making threats. And it was only in the last couple of weeks that the Russians have said they’re moving nukes up to a permanent station in Belarus, which is the first expansion of the Russian military footprint in terms of nuclear arms since the end of the Cold War. A lot of people are worried about that. But I think it’s best to look back before we look forward.

So if you remember back to February and early March, Putin was making nuclear threats against anyone who was willing to support the Ukrainians in any way. And then he just stopped. And the way it was explained to me the last time I was in Washington, went something like this this – the ambassador was dispatched to talk to Putin and to lay out a little bit of logic. And the idea was that if you look back to February and March, especially in January, when the Russians would have a super secret meeting with the National Security Council, the locked room, and then within hours, the transcript of those conversations would be published in Western media. The way the ambassador explained it to Putin was that the Americans have been listening to everything every phone call, every conversation, reading, every email, and in doing so, had a full picture of everything that Putin was personally considering and within his inner circle. And the idea was that, you know, a minor detail of this sort of espionage was that the United States knew at any given time physically where Putin was. So if he thought he could fling a nuke into the Western Hemisphere in the first couple, wouldn’t just come back and come right down his throat. He was kind of out of his mind. So he stopped making the threats and he left it to his henchmen to do it. This new development is kind of in the same vein.

Putting nukes in a place doesn’t in of itself change your military posture. And we know from some of the nuclear threats that the Russians made back in last March and April and May is that they didn’t actually change their readiness. They were just shouting. This is kind of like that. Because if you put a nuke in another country, you need a hardened facility, you need a command and control system, you need a night system that is absolutely hack proof. And putting that in Belarus, Belarus barely has electricity on a good day. It’s a horrible place for a nuclear race. So if the Russians did transfer nukes there, they basically would be sitting in crates surrounded by soldiers unable to be launched. So at this point and this specific issue, the nuclear threat coming out of Russia has not actually increased. The potential risk we have here is proliferation, because we know that the Russians don’t have the best security and we know that the military has become really corrupt, especially when it comes to hardware and funding. So taking secure nuclear materials and transferring them to a country that’s a kleptocracy like Belarus actually raises the chance that these things might get sold on the open market. It’s not that that’s a non risk, but it’s a very, very different risk from the idea of the Russians actually physically expanding their nuclear deployment footprint. But in terms of operational readiness, there’s really no change because the Russians already have a nuclear footprint in their little enclave of Kaliningrad on the Baltic Sea, which is west of Belarus.

So nothing has really changed here. The Russians are just looking for a little way to beat their chests and kind of feed the domestic nationalism machine that is keeping the government in power. This is about internal Russian politics, not international security issues, at least for now. Alright. That’s it for me. Talk to you guys later.

Building the Anti-Russian Alliance

Today’s video comes to you from Doubtful Sound in Fiordland National Park.

The European space has historically been disconnected. Between geographical barriers, neutral countries, and bloody history, that shouldn’t come as a surprise. Now that central and western Europe is forming a coalition against the Russians…Putin should be shaking in his boots.

Much of core Europe has already made its stance clear, with German, Portuguese, and Spanish tanks arriving throughout the month. With NATO votes coming up, historically neutral countries like Finland and Sweden are making their alliances clear. And even Turkey can no longer straddle the line and play both sides of this ordeal.

The real kicker here is that the Americans aren’t steering the ship. This is the Europeans doing what’s best for the Europeans. We haven’t seen a coalition this large united against a single power for centuries, and the Russians are in for a rude awakening.

*At 3:50 in the video, Peter mentions that the “French are contributing (to the Ukraine War effort) in a way they haven’t done since WWII” – it’s important to note that the French had boots on the ground in both Desert Storm and Desert Shield

*At the time of posting Finland has already been added to NATO

Prefer to read the transcript of the video? 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.

CLICK HERE TO SUPPORT MEDSHARE’S UKRAINE FUND

CLICK HERE TO SUPPORT MEDSHARE’S EFFORTS GLOBALLY

TRANSCIPT

Hey Everyone. Peter Zeihan here coming to you from Doubtful Sound in New Zealand’s Fiordland National Park. Anyway, a lot of things have gone down in the Ukraine space politically, not so much militarily. And I thought it was worth kind of looking at what the big picture is and to understand where we’re going forward, we have to go back. If you go to the world before 1945, the age of European competition, you had shifting alliances because the geography really prevented the area from coalescing into a single entity. So your northern plane, you’ve got the French, the Dutch, the Belgians, the Poles and the Germans who if you know, if there was ever going to be a zone where someone controlled everything, would be them. And so most chapters of history have been one of those powers trying to assert control over the others. You’ve got Scandinavian in the north with fjords and peninsulas and islands, so always fiercely independent and very naval oriented compared to everyone else. In the south you’ve got a more occluded coastline with very few navigable rivers of any type. And so you get regional powers who were relatively isolated from the others, but who could really punch above their weight economically because they’re all trade oriented, whether that’s in Spain or Portugal or Italy or the Balkans. It makes for a bit of a mess. And so for most of the half millennia leading up to 1945, it was kind of a war of all against all with shifting alliances here and there. Always changing texture, always changing sides. Then the Americans came in, in World War Two, and the Soviets rose during World War Two become major powers who injected themselves into this competition, encroaching into the rules of the game, because suddenly you had these two outside-ish powers who were determining all the major decisions. And we kind of forgot that Europe was the most blood soaked part of the planet until that point.

Now, with 1990 and the end of the Cold War, the Europeans have been living in a vacation from history where the security paradigms of the Cold War exist without the security threat of the Cold War. You combine that with the late globalization period and the time when pretty much all of the world was open for business and you got a very different sort of environment economically and especially politically. Well, the Russians now are kind of climbing back, clawing out of their post-Soviet hole and attempting to reassert themselves as a major regional power. Whether you believe they’re doing this out of stupid reasons or sane security reasons doesn’t really matter. They’re trying to change the nature of the system for their own long term benefit, and that is forcing countries to do something that they haven’t had to do for decades. Take a side, take a position and form an alliance to counter the Russians.

Now, from the Russian point of view, it’s all about the Americans all the time. And everything that’s going wrong for the Russian can be laid at the Americans feet. But that is to completely ignore the history of Europe, which is that of a series of independent and semi-independent primary secondary powers.

So what is kind of shaking out this week? Well, first and most importantly, the German leopard tanks, mainline battle tanks, have finally reached the war. And so now the Germans have fallen into this position of – we don’t want to be in a leadership position. We know what that has looked like in the past. We understand why everyone was nervous about it. Well, we don’t have a choice. We are the largest economic power in the northern European plain, the largest economic power in Europe. And historically speaking, we have also been the most powerful military force. We have to take a leadership position because if we don’t, this is all going to fall apart and we will be facing the Russians on the plains of Poland. And we know exactly where that leads. And we don’t want that.

This has a lot of depth because the Dutch also on the northern European plain are into the hilt. So are the Poles. The French are contributing in a way we haven’t seen the French contribute to multinational operations since World War Two and even further back technically off the plain in places like Spain and Portugal. Portugal tanks arrive with the German ones and the Spanish ones will be there within a month. So everyone in that kind of strip of what you think of as core Europe is already fully committed and back in the game. Scandinavia is a little bit different here. You’ve got mostly independent cities, states that masquerade as countries, and then Sweden, which has kind of been out of the game for three centuries. By the end of next week, Turkey will have voted on whether or not to let the Finns into NATO’s, and a vote on Sweden will probably go within a couple of months of that. And that means that these two traditionally neutral powers are going to be taking a leadership position in security policy in Europe. And the only issue they care about are the Russians. Now, the Swedes have been out of the game for three centuries after a massive military defeat in what is today’s Ukraine and in the aftermath of World War Two, the Finns were forced into a degree of neutrality where they could chart their own economic course. But on any sort of security decision making, the Soviets had full veto power. Well, that is now gone. And these two countries that have very strong militaries, relative to their size, economically or in terms of population, all of a sudden are the harbingers of the apocalypse when it comes to the Russian point of view of how European security should go, because they are extraordinarily anti-Russian. Every security question that they have ever faced has been framed in the context of what do we do the day the Russians invade? Everything else is around that, and now they’re about to be part of the decision making architecture. That also means that the Turks are coming in from the cold. They’ve been trying to kind of have their cake and eat it, too. But in the last few weeks, they’ve joined the sanctions regime relatively forthrightly and are now no longer an avenue that the Russians can use to evade the sanctions regime, especially when it comes to materials import things like semiconductors. And then finally, of course, there’s the United Kingdom. The United Kingdom was always going to be anti-Russian because it’s a naval power on an island. And any time it looks like a land power in Europe is going to become more potent. They get a little nervous and they want to make sure that the land powers are busy with land issues so they can’t float navies that can challenge London. Well, King Charles was just coronated in his first full state visit to Germany. If there are two countries in the European space that tend to be on opposite sides of all economic and security questions, it’s the United Kingdom and it’s Germany. And the fact that they’re, you know, within sight of one another is something that should turn anyone on the opposite side of that axis to turn the blood cold.

So what we’re seeing here for the first time, not in decades, but in centuries, is everyone in Central and Western Europe at the same time coming together to form a broad coalition against a single power. We haven’t had that since Napoleon, if you want to get technical, we haven’t had that since the Treaty of Westphalia. And the Americans, while they are a part of all of this, are not steering this part of the equation. This is the Europeans doing what makes sense to the Europeans. And if I were the Russians, I’d be very concerned about that.

The Russian & Chinese “Partnership”

Russia has long operated under the guise of “strategic partnerships” to keep its enemies within striking distance. Putin and Xi’s partnership is no different. However, only time will tell who will end up with the knife in their back.

For both sides, this is an alliance of convenience enabling them to get around some sanctions brought on by the war in Ukraine. But the Chinese might be looking to gain a little more from this relationship. Xi’s recent meeting with the leaders from Uzbekistan, Tajikistan, Kyrgyzstan, and Kazakhstan is indicative that a move on the Russian space could be in the cards.

One of Putin’s motivations for the war in Ukraine is to take control of the geographic access points used to launch assaults against the Russians. Can you guess where one of those access points just so happens to be? The Altai Gap…which connects Russia, Kazakhstan, and you guessed it, China.

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.

CLICK HERE TO SUPPORT MEDSHARE’S UKRAINE FUND

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Russia Targets the Ukraine Grain Deal

The changing situation with the Ukraine Grain Deal has given me plenty to ponder while tromping through Fjordland in New Zealand. Due to the war, Ukrainian agricultural exports were reduced to a fraction of their pre-war numbers. The grain deal brokered by the UN was a glimmer of hope that perhaps exports wouldn’t entirely fall off the map…

With winter on the way out and summer just around the corner, the Russians are revaluating their strategy. Targeting power infrastructure may have worked during the winter, but it doesn’t make much sense for the warmer months…it appears the new target will likely be Ukrainian agriculture.

We’ve already seen the Russians change the renegotiation period of the grain deal from 120 days to 60 days, and I wouldn’t be surprised if March is the last time the Russians resign. So Ukrainian exports might fall off very soon, but can the rest of the world’s (already struggling) agriculture industry pick up the slack?

Prefer to read the transcript of the video? 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.

CLICK HERE TO SUPPORT MEDSHARE’S UKRAINE FUND

CLICK HERE TO SUPPORT MEDSHARE’S EFFORTS GLOBALLY

TRANSCIPT

Hey everybody. Peter Zeihan coming to you from Ruby Baby in Fjordland in New Zealand. The big news that I’ve noticed is that the Russians are throwing a bit of a fit about the grain deal they have with the Ukrainians. Now Ukraine until very recently was one of the world’s five biggest agricultural exporters for wheat, number four in corn, number one in sunflower you know all important things that help prevent a lot of countries from starving to death. Well, the problem is that most of the stuff that comes out of Ukraine is shipped by water. It’s far easier to ship things by water than it is by land. In terms of rail versus water, about a 3 to 1 cost difference. And Ukraine is perfectly set up for that because they’ve got the Dnieper River that cuts right south to north through the middle of the country. And so everything just gets on a barge, goes out, eventually hits the sea cities Kherson and Odessa, then are put on the big altars and then taken out through the Black Sea, the Turkish Straits and the rest of the world. What has happened, however, is with the Russians first capturing Kherson and then putting Odessa under assault, this is all been disrupted. So the only way to move things out of Ukraine at present is by rail. And not only does Ukraine not have a well-developed rail system. It doesn’t use the same gauge as the European ports. So it’s been very, very difficult, to get much out. Really less than about one out of six vehicles that they used to ship, they can ship now.

Now, the Turks in league with the United Nations have convinced the Russians to sign on to a grain deal. And this grain deal allows ships to come into Odessa, get searched by the Russians on the way in to make sure they’re not carrying weapons and then load up with grain and they get searched on the way out to make sure that they’re not carrying anything that the Russians don’t want to get out. This has increased the volume to about 20 to 25% of the volume that the Ukrainians could do before the war. So still not great.

Now, if you’ve been following the war, you know that throughout the winter the Russians have been bombing the power grid with drones and missiles to try to kill as many Ukrainians as possible. They’ve been doing this in the winter, thinking that if you can freeze the country to death, many tens of thousands, if not hundreds of thousands of people will be injured or killed. And that might weaken the war effort. Once we get to summer that’s going to change. So what the Russians are facing here is the grain deal is normally renegotiated every 120 days they are  now insisting they only want a 60 day renewal. Well, if you fast forward from late March, 60 days, we’re getting into the beginning of summer. In the beginning of summer, the Russians won’t have a vested interest in destroying the power grid because no one’s going to freeze to death. So they’re going to go after the agricultural system, everything from fertilizer on the front end to the silos and the rail stations on the back end to try to kill as many people as possible that way.

So last year was probably the last year that Ukraine will be a significant agricultural exporter at all, and we should not expect to see the Green Deal renewed come late May. That’s just the situation we’re at. And if you throw in the problems with natural gas and nitrogen processing in Europe hitting the fertilizer market, the problems getting potash out of Belarus hitting the fertilizer market, the problems getting phosphate out of China, hitting the fertilizer market later this year is going to be really raw for a lot of places. Aright. That’s it for me. I’ll see you guys at the next spot. Take care.

The Jordan Harbinger Show

I recently had the opportunity to sit down with Jordan Harbinger on “The Jordan Harbinger Show” (for the loyal followers, you’ll know this is my second appearance).

We discussed how the globalized world came to be, the factors contributing to its instability, and how the process of deglobalization is well underway. The chaos the world is about to face is nearly impossible to consolidate into an hour long podcast, but this is a good start!

Links to the podcasts, YouTube videos, and more can all be found below.

Geopolitical Strategist on China’s Upcoming Collapse JHS Ep. 781

Confronting a Geopolitical Strategist on Putin’s Big Plan Peter Zeihan Ep. 640

*This video is from my first appearance on The Jordan Harbinger Show

Did you miss out on the Global Outlook Webinar
Click the link below to purchase it:

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.

CLICK HERE TO SUPPORT MEDSHARE’S UKRAINE FUND

CLICK HERE TO SUPPORT MEDSHARE’S EFFORTS GLOBALLY

Danger Close with Jack Carr

Last week I had the opportunity to sit down (virtually) with Jack Carr on his show Danger Close. We chatted about the troubling outlook for China, the ins and outs of the war in Ukraine, and much more!

Moving forward, I’ll share my appearances from different podcasts and shows. Most of these are longer than my usual YouTube videos, so for those looking for more of my insights…this is for you!

This is my second time on Danger Close, so if you need even more listening material, check out my original episode from March 2022.

MOST RECENT INTERVIEW – MARCH 8TH 2023

OLD INTERVIEW – MARCH 16TH 2022

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.

CLICK HERE TO SUPPORT MEDSHARE’S UKRAINE FUND

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Trusting the Numbers in a Deglobalized World

To my fellow nerds reading along…this is your trigger warning…today we’re talking about BAD DATA. Sorry for the dramatics, but I’m sure many of you share my frustration when you can’t find the correct numbers for that forecast you’re working on or, even worse, the data you used in your model is falsified.

Unfortunately for us, this problem is only going to get worse. We know that the numbers coming out of Russia and China haven’t been “trustworthy” for years, but at least we could check most of it. At least now we don’t have to worry about data manipulation because both countries decided they wouldn’t collect or report it…

The increasing struggles of data reporting aren’t isolated to autocracies either. As the global trading system breaks down, most of the world will be hit with paralyzing inflation and trying to track it would be a fool’s errand. Until the gaping vulnerabilities left in the global trade system are patched, this will continue raging on.

Some countries will fare better than others, but no one is getting off scot-free. The modern world’s economic model is crumbling, and someone will have to figure out what we all do next.

Prefer to read the transcript of the video? 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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TRANSCIPT

Hey everybody. Peter Zeihan here coming to you from breezy, chilly California. And today we’re going to talk about statistics. Yes, yes, yes, I know, but it’s a lot better than it sounds. So I can’t do anything that I can do with analysis, much less forecast without decent data. And in some countries, that’s just more difficult to do than others. I’m not talking here about like bureaucratic interfaces or anything. I’m talking about just outright lies. So the two countries that have always been a bit of a black hole when it comes to the data are China and Russia.

In the case of China, the lies are primarily of choice. So you’ve got individual local leaders who are pumping up their own numbers to get more money from the federal government or in order to curry favor. So if the government says we want 6% growth, they’ll get six and a half. But some of it is just outright greed. The point where the Chinese system admits that you’re a person and starts to count you is when you enroll for kindergarten. Basically. So local governments have bumped up the number of people who have enrolled in order to get more cash. You play that forward for 40 years. The Chinese are now admitting that they’ve overcounted their population by in excess of 100 million people. And this is a big part of why China today is now in terminal economic decline. They just don’t have the people anymore. And they didn’t see it coming because the numbers told them otherwise.

In the case of Russia, it’s more a classic one-upmanship. There’s a general belief among Russian bureaucrats that they have to be better than the United States, even if they have to completely fabricate everything. So my personal favorite statistic out of Russia is that the Russians see that roughly one fifth of American agricultural land is irrigated. So in Russia, 25% is irrigated because 25% is more than 20%. That makes us better than you, which is, of course, you know, dumb, because if you’re irrigating land, that means you have to pay for it. And it’s usually not as efficient anyway. This has always been a challenge. We normally deal with this by evaluating counterparty. So if the Chinese say export some product, what’s called electronics to other countries, then you look at the import data for those other countries and you use that to back up to estimate how much came out of China. Same with the Russians.

What we’re seeing now with the Ukraine war and the onset of sanctions at volume is that the Russians are no longer lying about their data. They’re just not reporting it at all. And in the case of China, they’re not just lying about the data. They’re in many cases not collecting it. So a good example of that very, very recent just the last few weeks is with COVID. Now, Chinese data on COVID has always been nudge, wink, questionable, but they just stopped collecting it all after their opening. And you can kind of see why. I mean, let’s assume for the moment that the anti-vaxxers and the conspiracy theorists among us in the United States have actually been right all along. And COVID is no more dangerous to you than the common cold. Well, if that is true, China still lost a million people in the last several weeks as COVID spread through the population for the first time. It’s probably almost certainly sickness, acutely worse. And if the Chinese don’t collect the data and you have an information closed society, then no one knows. But I don’t want to just pick on the autocracies out there because the whole world is going to have a problem with data moving forward.

A couple of things. First, if you’re talking about a breakdown of the global trading system, we are going to have spasms in inflation as some products get produced in some zones but can’t get to others for assembly or raw commodities can be produced somewhere but can’t get shipped everywhere. Every part of the world is going to have different inflationary, deflationary and disinflationary trends, different from not just product to product, but component to component. And keeping track of that, much less putting it into an index is going to be a fool’s errand. We’re just going to feel the term of product shortages across the entire system. And until you can home shore or nearshore or friend shore, in that order, the component production themselves, the material processing itself, it’s not going to go away because it’s going to be vulnerable to security interruptions.

Second, most of our economic laws and rules and understanding are rooted in the idea that the economy gets a little bit bigger every year, not necessarily from technological advancement or economic growth classically, but simply from populations expanding. If you have more people every year, you have a little bit more consumption every year. You have a little bit bigger economic pie every year. Only that’s no longer true. In the aftermath of World War Two, the whole world started to industrialize, which is another way of saying the entire world started to urbanize. And as you move from the farm and into town, you have fewer kids until you get to modern day, say, China, where in the cities you’re averaging now less than one person per woman for her lifetime.

After 75 years of this process, we are now well past the point that the advanced countries are repopulating. China is on that list and over the course of the next 10 to 20 years, a lot of the advanced industrial world places like Korea are going to follow suit, which means that the pie is not getting bigger, which means that the tools we’ve developed, the theories we’ve developed, the monetary policy that we’ve developed is no longer appropriate for the world that we’re in. It is going to take us years, if not decades, to come up with a replacement system and replacement rules and replacement understandings and theories and especially policy tools to adapt to this. North America gets a bit of a pass. First of all, the Mexicans have the healthiest demography, not just in the rich world, but in their own peer class, better than India, better than Brazil, better than Turkey and the United States. We have one of the highest birth rates in the world among the rich countries and now higher than many advanced developing countries as well. And at current rates of aging, we will actually be younger than the Brazilians in the mid-twenty forties and younger than the Indonesians around 2050. So we’ve got time. Canada doesn’t have that kind of time, but Canada has gotten clever and has a cheat code and basically has embraced immigration as a national identity issue and so they’ve been able to import a huge number of people in their twenties and their early thirties, in a way that they haven’t done before. And that’s bought them time by importing an entire generation. That means North America is at least partially resistant to these trends, and the countries of North America are not going to have to be the ones to pioneer a fundamentally different economic model simply to preserve their societies. We can wait, we can watch, we can learn.

Anyway, that’s it for me. I’ll see you guys next time.

Can the US Military Fight Russia and China?

With the potential for the Americans to get caught up in simultaneous wars with the Russians and Chinese, do I think the US can handle it? The short answer is that the US will be fine, but if you had asked me this during the Cold War – it would have been a cakewalk for the Americans.

While I don’t think it’s likely (and it is most certainly not recommended), simultaneous wars with the Russians and Chinese wouldn’t be overwhelming for the US military. That is because those two wars would boast extremely different circumstances.

War with the Russians would be a war of supply, providing munitions – specifically the decommissioned and outdated stuff – to the Ukrainians. On the flip side, war with the Chinese would be fought on the seas; the navies would be doing much of the heavy lifting.

The military assets needed to fight these wars would strain different structures, allowing the US military to operate at a manageable and sustainable level.

Prefer to read the transcript of the video? 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.

CLICK HERE TO SUPPORT MEDSHARE’S UKRAINE FUND

CLICK HERE TO SUPPORT MEDSHARE’S EFFORTS GLOBALLY

TRANSCIPT

Hey everybody. Peter Zeihan coming to you from California. A lot of people have written in some questions about U.S. military strategy in light of the Ukraine war and perhaps hostilities with the Chinese. Back during the Cold War, the United States maintained a military policy of being able to fight two and a half wars. The idea that there would be two major conflicts with the Soviets. And, you know, we still need enough dry powder to fight like a small brushfire conflict and in the post-Cold War era that’s basically shrunk down to one. The idea that the United States assets are now more concentrated than they used to be, and that means they need to be more focused. And so if we end up into a conflict with the Russians and the Chinese at the same time, am I concerned that we can’t pull that off?

And the short version is no. Now, the nature of the conflict in Ukraine is one where the United States feels it can’t become directly involved because the risk of a nuclear escalation will be huge. And that means we’re supplying the Ukrainians to fight the war for us…from a certain point of view. And in doing so to this point, the military assets that are being transferred are things that we don’t use. Most of this is equipment that dates back to the seventies and the eighties that was decommissioned in the nineties in the 2000s. And honestly, the United States doesn’t think of that as part of its balance sheet in terms of its order of forces. It’s stuff that we had to dispose of, actually. So in many ways, the Ukrainians are saving us money in a weird sort of way. That means that the army is still available to do whatever with all of the equipment that it would use anyway. There hasn’t been anything taken off the top except for maybe some ammo, and we’re already producing five times as many artillery shells a day as we did before the war. So I’m not really overly concerned there.

In addition, if we do get into a clash with the Chinese, which I don’t think we will, but if we do, that is going to be primarily a naval fight. So it’s entirely possible, if not necessarily recommended, that the United States could be involved in a land war on the western end of Eurasia, while being involved in a naval war on the Eastern End. And the sort of military supplies that go to those two different types of forces are ones the United States is perfectly capable of providing simultaneously.

So while I’m not advocating for a war with either power, and I don’t think a war with either power is likely, the United States actually is capable of doing both of those at the same time. This is not chewing and walking. This is doing two radically different things with radically different command structures and especially military assets that don’t necessarily need to be in the same place at the same time.

Alright. Hope that makes a few people feel a little bit better about a few things. See you guys next time.

Interfering with the Russian Gold Trade

The Russians are taking a page from the Iranians by using gold to avoid the sanctions imposed on the Euro and USD. But before we look at how the Europeans are trying to disrupt their gold usage, we must understand why gold makes sense for Russia.

First off, Russia is a top producer of gold…it’s got stockpiles of the stuff. Smuggling it is also relatively easy, thanks to it being so value dense. But gold and Russia go hand in hand because they’ve got gold in almost every form: gold bullion, partially processed gold, and the important one to note – gold concessions.

The Europeans are desperate to interfere with Russian trade activity, and imposing sanctions on their gold concessions might be the only way. The problem with this plan is the Wagner Group is the one getting paid in concessions…and if you come for Wagner – you can bet they’ll be coming for you.

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.

CLICK HERE TO SUPPORT MEDSHARE’S UKRAINE FUND

CLICK HERE TO SUPPORT MEDSHARE’S EFFORTS GLOBALLY