Strategic Win for NATO: Sweden Joins the Ranks

Hello from Bison Peak in Colorado. By the time you see this, the knot should be tied on Sweden joining NATO. There’s still a little arm-twisting that will go on behind the scenes, but most of the heavy lifting is done (and Turkey got the bribe they wanted, sooo everyone’s happy).

From a strategic POV, this is a huge win for NATO. Sweden is, bar none, the most capable country to join the alliance in the last 50 years, not just another security consumer mooching off everyone else. In addition, Sweden’s capabilities are also hyperfocused on one goal in particular…keeping Russia in its place.

Sure, the Swedes have been relatively neutral in the past, but they’re still armed to the teeth with shiny new toys. And from the perspective of the Americans, getting Sweden on board was the best possible outcome.

For the alliance as a whole, Sweden is more than just another name on the list; it’s a country that could reshape NATO’s entire outlook on the war in Ukraine.

Prefer to read the transcript of the video? Click here

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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

Hello from Bison Peak in Colorado. I’m at about 12,000 feet right now. Probably won’t be staying here for the night anyway. By the time you get this message, everything should be pretty official. It looks like the Swedes are going to be joining Naito at the Vilnius summit. The Turks, after making a couple of outlandish demands, they basically indicated that they were looking for a bribe.

Apparently behind the scenes got the bribe that they were after and have given a preliminary approval. Now, this is not done until it’s done. You still have to have the Turkish parliament sign off on ratification. And after that there is one more obstacle with the Hungarian parliament. Hungarian Prime Minister Viktor Orban has actually been acting as a advanced force for the Russians in Nieto in the EU.

So there are some complications could could arise. But the heavy lifting has been done now and that’s just to require a little bit of light arm twisting to probably make it happen. I have no idea what the bribe is that the Turks demanded and received, but everyone seems pretty pathetic. Things like this happen in Europe all the time anyway.

So on to the strategic issue. First and foremost, Sweden is the most capable country to join NATO’s since its formation back in the 1950s 1952. I believe you had your initial batch of Atlantic countries, which included, say, Britain and the Netherlands and Canada, the United States, obviously, those were very capable countries. And then in 1955, West Germany was admitted almost as a subject state.

The Germans were not allowed or issued opinions on strategic issues, and so they basically just served as a bulwark within the to the allied system until we had reunification in the 1980s. And since then, the countries that have joined, whether it’s during the seventies and the eighties, with countries like Greece or Spain or Portugal or in the post-Cold War era, such as Latvia or Romania or Poland, they have definitely fall into the category of what they like to call security consumers, countries that don’t have militaries that are right size to their needs and or have extreme geographic vulnerability to potential hostiles.

Sweden is the first country of note that has does not achieve that pattern. Sweden has been a major industrial military power over a half a millennia. And the reason we don’t think of Sweden as a major player is because for the last 300 years it’s been neutral in a conflict called the Great Northern War. Three centuries ago, Sweden was the preeminent military power of the entirety of Europe and almost ended up ruling it all.

And it took a coalition of everybody else, including the Russians and the people that we now think of as the Germans, to break Swedish power in Northern Europe. Since then, they have enforced a degree of neutrality on themselves, literally going back centuries. But they are not a normal, neutral country. They are armed to the freakin teeth. They are a maritime power.

But unlike the United States that has maritime interests in every ocean basin, theirs is entirely focused on the Baltic Sea. They have arguably the best amphibious military capability outside of the United States and the United Kingdom. And again, it’s very, very focused on a very specific geography. And that means that with the Swedes within the NATO’s firmly, you get that sort of defense competence with a cooperation that is very, very focused on one thing and one thing only.

And that is Russia. The Swedes have been quietly advocating for positions that will box in the Russians and that will encourage independence and development in places like the Baltic republics ever since 1992. Now they’re not doing it as a neutral. Now they’re doing it hand in glove, and it’s only going to be a matter of time, I would say, weeks to months, not years to decades before Sweden emerges as one of the leading voices within the alliance itself on pretty much everything that matters as regards the Ukraine war.

That means defense cooperation, that means military procurement, that means pushing for democracy in all of the fringe states. That means hemming in the Russians. That means taking a relatively forthright position vis a vis the Chinese. It is basically you’re looking from an American point of view, is it the best country in the world? Just joined the network. And unlike countries like, say, France or Turkey or even the United Kingdom that have their fingers in a lot of pots.

And so there’s always conflicting interests in the Swedish military. Every day, you wake up, you prepare for one thing, the war with the Russians. And there is a war with the Russians right now. All right. That’s it for me, everyone. Take care.

Sweden’s (Not So) Rare Earth Metals

A state-owned mining company in Sweden has just stumbled upon a million metric tons of rare earth metals…but what does that mean? Any addition to the rare-earths supply is great, but I don’t see this moving the needle much.

These metals aren’t all that rare, they’re not difficult to process and they’re not all that expensive…plus we won’t be seeing any of these metals hit the markets for at least 10 years.

While this is a nice discovery for the Swedes, plenty of countries have excess processing capacity should a need arise.

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

Hello. From cloudy and soon to be snowy Colorado. The big news of late is that in Sweden, a state owned mining company has announced that it’s found a million metric tons of rare earth oxides. And a lot of folks are saying, oh, this is what’s going to break China’s stranglehold on that space. A rare earth metals are used in a lot of different technological applications. A little goes a long way. They’re used in everything from sunglasses to photo development to green tech to semiconductors. So it’s kind of a big space. And the Chinese do dominate. At the moment, about 90% of total supply. But I’m really not all excited about this Swedish announcement for three big reasons. 

Number one, this is Europe, and you don’t have to find a lot in the ground for it to be Europe’s largest deposit of anything. So a million tons of oxides sounds like a lot, but generally out of every tonne or two of rock, you only get about an ounce of material. So while a little does go a long way, this really isn’t all that much.

Second, this is this is still Europe. And the Swedes themselves are saying 10 to 15 years before the first ounce of this stuff makes it to market. The technologies involved in purifying Rare Earth requires several hundred vats of acid, as you slowly dissolve and then tease out the materials from one another. They all have similar physical characteristics and atomic weights, so separating them is very difficult and honestly a little toxic.

Third, but most importantly, it really doesn’t matter because we really don’t have a rare earth problem. Yes, yes, yes. 90% do come from the Chinese. But there’s a few things about rare earths that most people just have forgotten. 

Number one, they’re not rare at all. They are produced as a byproduct of almost every type of metal mining that is done, especially things like zinc and nickel and copper and silver, none of which are in really in shortage. Second of all, the technologies involved in doing this date back to the 1920s, so they’re not particularly difficult, even though they’re toxic and time consuming and they’re not even really expensive. And then there’s number three. The Chinese dominate the space because they subsidize the industry. So they’re doing us all a favor. Back in the 1980s, when rare earths were priced more normally, we were skimpy with them. But in the 1980s and moving into the 1990s, the Chinese started just hyper subsidizing this entire sector, and they out competed everyone on price, but they never stopped subsidizing. And so we’re still getting rare earths for less than a 10th of what we used to pay for them. So whenever there is a stress in terms of supply, like about a decade ago when the Chinese threatened the Japanese with a cutoff, we just dust off three decades worth of efficiency gains and then figure out how to do with less. So the Japanese in less than a year were using only a quarter of what they had used before, showing that there’s not nearly as much influence here as you might think.

Finally, people have learned after the Japanese threat. Lots of countries and lots of companies did two things. First, they started building up a stockpile. So if the Chinese did threaten any sort of cut off again, they’d have six months to a year of supplies in their back pocket. And second, a lot of countries started building out that processing capacity anyway. Now, they haven’t turned it on because the Chinese are still subsidizing everything. But Australia, the United States, France, Malaysia and some others have more than enough spare capacity for processing now that if there was a cutoff tomorrow in less than a year, most of the world would have most of the rare earths that they would need.

So more power to the Swedes. I hope this stuff comes online. More is merrier in this sort of environment, but this really just doesn’t get me all that excited. Alright. That’s it for me. Until next time.

Sweden, Finland, NATO, and Turkey

Most NATO members have met Finland and Sweden’s joint application for membership with open enthusiasm. The US, UK, France; even the Italians and Greeks are cheering, in a rare moment of pan-European positivity. 

But not the Turks. Long kept at arm’s reach from EU-membership (including by self-appointed human rights stewards like the Swedes), Ankara is going to savor its ability to make Sweden and Finland’s ascension process be as much about Turkey’s needs as it is about Russia.

The Turks aren’t just being spiteful for spite’s sake.

Turkey and Greece were the first states to gain membership in an expanded NATO in 1952, joining the 12 member nations who formed the bloc in 1949. In addition to being one of the bloc’s longest-standing members, Turkey (not unrealistically) views itself as one of NATO’s most strategic. Its geography, particularly the control of the Turkish Straits, affords Ankara outsized influence over the Black Sea, the Danube Basin, and the Eastern Mediterranean. Ankara also happens to have the bloc’s second-largest army, second only to the United States. Turkey isn’t just cribbing from a Rodney Dangerfield act when it angles for more respect from its supposed Western allies; it is an important partner and now has the geopolitical heft to make sure everybody knows it.

Ankara is also one of a handful of countries around the world that is willing, able, and actively seeking to establish itself as a meaningful regional power. Turkey’s neighborhood (especially along its southern and eastern borders) has always been…spicy. The Turkish state’s long-standing conflict with Kurdish separatists has been an easy target of criticism for its European neighbors. But now Turkey gets to point the finger at countries like Sweden, who it claims is doing too much to encourage Kurdish separatist militias in places like Syria. Ankara is well within its rights to claim how it can be expected to call Sweden its ally, when Stockholm’s actions risk directly threatening the security and stability of the Turkish state.

Turkey also famously straddles Europe and Asia, the Mediterranean and the Middle East. We should not be surprised that a country that shares land borders with Bulgaria and Iran, Greece, Georgia and Armenia has a different worldview than the northern Europeans or Portugal. Or that a country that borders the Syrian Civil War, the remnants of Iraq and an intensifying Azerbaijani/Armenian conflict is going to have different security realities than the land of Ikea, H&M and Volvos. And here we see how one of NATO’s strengths–its size–complicates its ability to move swiftly as a unified bloc.

Is Turkey going to use its veto authority to block Sweden and Finland from joining NATO? I think the more important question is whether or not Sweden and Finland are ready to recognize and respect Turkish security prerogatives as being as legitimate as their own concerns over Russia. 

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