Half A Million Immigrants Get the Boot + Auto Tariffs and the Art of Routine Vehicle Maintenance

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Half A Million Immigrants Get the Boot

The Trump administration has decided to rescind legal status for over half a million immigrants from Venezuela, Nicaragua, and Haiti. If you’ve listened to any of my videos, you’ll know there are some glaring holes in this decision.

First, the labor impact. The US is already facing a labor crunch, and the problem will only be exacerbated as we shift away from manufacturing in China. These immigrants had already been vetted and were ready to contribute to the workforce…there goes that.

There are legal and social consequences as well. Since these immigrants were fully integrated in the US system, stripping them of their legal status forces them into the cash economy and makes them targets for crime and exploitation. This also signals to future migrants that following legal pathways is futile, leading to more illegal crossings.

It’s just another notch in the undermining of trust by the Trump administration.

Auto Tariffs and the Art of Routine Vehicle Maintenance

The Trump administration announced a 25% tariff on imported cars and car parts. While this tariff isn’t as severe as the others expected on April 2, it will still increase the cost of vehicles in the US by $2-3k on average.

There are some NAFTA exemptions for this tariff, but any vehicle containing 50% imported parts will still face a 12.5% tariff. This will impact all the manufacturers across the industry a bit differently, with the European manufacturers feeling the most heat.

Prices start to get spooky when you begin stacking tariffs. Between the 25% tariff on steel and aluminum and the reciprocal tariffs coming soon, I would keep driving your vehicle for as long as you can.

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

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

Transcript #1

Hey, Peter Zeihan here. Coming to you from a hotel room. I don’t have a lot of time today, so packing up while I do this. Okay, so, the issue is, I see today is the 25th of March, and yesterday, the Trump administration rescinded legal, status for about 530,000 immigrants, specifically from Venezuela and Nicaragua, some from Haiti. 

Two big problems here. The first is that we are in a labor crunch. We have record low unemployment in poorly and a half a million people who are participating in the labor force. The kind of problem, you see, these were not your normal people who cross the border. These are people who got legal ization from the Biden administration not just to come here, but for them to come here. 

They had to register with authorities, have an interview with Department of Immigration, have a financial sponsor. And so they were integrated to the system. They had passed checks. So we’ve basically done all the work necessary to make them citizens. And then at the last segment, like say so, unless they’ve already proceeded on to the next step, they now have to go home. 

That’s problem one. Remember, we need to double the size of the industrial plant if we’re going to be ready for the Chinese collapse. That means a lot of construction. That means a lot of people building things. And as a rule, construction is a sector where most American citizens don’t want to work. So this is a real problem for the labor force. 

So to invest all of this time and effort and money and man hours in making these people ready and then kicking them at the last second, that’s just a waste. Second problem is legalities. And not the legalities of doing this. President obviously has the authority. The problem is on the other side, you see, when you’re legal, when you’re in the system, you can get a bank account, you can own property, you can register for health care. 

You can send your kids to school without having to worry about pulling them out the next day. And when you’re in that sort of environment, law enforcement is a resource you can draw upon. So, for example, if you’re a legal, illegal, you’re in the cash economy. And that means that everyone in your area who knows you’re not a legal migrant knows that you basically deal with cash. 

And as a result, you’ve identified yourself as someone to rob. And if you are Rob, you don’t go to law enforcement because you’re afraid you might get deported. So for these 530,000 people, we weren’t in that category. They were, for as far as we can tell, law abiding immigrants. 

And that means that now the Trump administration has basically penalized a half a million people for following the law, which means that the next half a million that come will probably not make the same mistake. 

This is an issue that we have had pretty chronically, since the 1980s, when the Reagan administration was the last administration to go through and change the legal structures for migration. We haven’t really given would be migrants an incentive to participate with the system? And this sort of thing is definitely going to accentuate that problem. 

Keep in mind that within the last month, the Trump administration has, started arresting, would be migrants that have also participated with the system through the, the, CBCp, arresting them on their way to their court hearings where they were supposed to be ruled upon, whether or not they were legal or not, and just grabbing them and send them home. 

So the next wave is definitely going to cross illegally and form an underclass in American society. And as we’ve seen with the phase one of the Trump administration. And, you know, four years ago, the wall did wonders for encouraging illegal migration, made it a lot easier because the Sonoran and the Chihuahuan Desert are the greatest natural barriers in the hemisphere. 

And by building 50 construction roads across the desert to build the wall, we basically obviated half of the barrier. This is definitely going to take advantage of that when we get our next big wave, which will probably happen as soon as the migrants can figure out how to navigate the new system, which, historically speaking, takes about a year or two, so we won’t have to wait too long.

Transcript #2

Hey all, Peter Zeihan here. Coming to you from Colorado. It is the 27th of March and late yesterday. Donald Trump initiated yet another tariff. I think this is the 87th tariff policy that we’ve had in the last six weeks. Oh my God. Seven weeks. Seven weeks. Anyway, 25% tariff on all imported cars and car parts. This is not the one that I was dreading. 

This one is actually not too bad, considering the scope of all of the others. Because if the car or the car part is produced within Canada, Mexico, in the United States, and is registered as a NAFTA product to import lifts, then it gets a bypass. So if your car is made out of one half content that comes from somewhere else. 

You now have a 12.5% tariff on the vehicle. It’s still going to drive up the cost of vehicles in the United States on average by about 2000, maybe $3,000 in some cases. But, because most of these imported parts don’t go back and forth across borders, in the NAFTA system. It’s not nearly as bad as what a NAFTA tariff would have been, which is what Donald Trump is threatening for April 2nd anyway. 

This will kick in on April 2nd as well. Not all vehicles are made equal. And just because it’s in a U.S. company does not necessarily mean that they don’t use a lot of import content. Automotive is unique among the world’s manufacturing sectors in that everyone produces some of everything because almost everybody needs cars at some level. 

So the Germans make the good transmissions, the Mexicans make the mediocre transmissions, and the, Chinese make the crap transmissions. Just to pick one. So just because it’s a Ford or a Chevy doesn’t mean it doesn’t have a lot of imported content. As a rule, the Big Three American automakers do have more. The the changes model by model. 

And as a rule, the Japanese, most notably Toyota, also have a lot of North American content because they have this concept of build where you sell and they put their money where their mouth is, and they’re trying to get on the right side of tariff and political issues. Once you get into Korean cars, it drops quite a bit. 

And once you get into the European cars, it really drops. Most of the European and manufacturing centers that are in North America actually use almost 100%, in some cases, 100%, imported content from Europe. And then, of course, if you’re getting a Beamer that comes from Bavaria, it’s probably 100%, European content as well. Anyway, we’re putting up this handy little chart so you can see of the top 25 models, which ones or which. 

Generally, the closer you are down into the red towards zero, the more your vehicle is going to cost. And a quick reminder that this is just one of the tariffs that is hitting automotive. We’ve got another one that’s in place already. And that’s the 25% tax on imported aluminum and steel, which you know every vehicle has a lot of both of those. 

And then once we get to April 2nd, that’s when Donald Trump is going to be announcing a lot more tariffs, something he calls reciprocal tariffs, probably NAFTA tariffs and then additional tariffs on everybody on the outside that he doesn’t like. He calls them the dirty 15. And they’re really just our 15 largest trading partners. So you put those three together. 

Remember these all stack up with one another. They’re cumulative and could easily see the cost of automobiles in the United States going up by $10,000 a vehicle, or maybe even a lot more based on where they come from. 

Now the data in this graphic is from 2021. There is more recent data available from the Department of Transportation. Unfortunately, because of the bonfire of staffing that is occurring in the federal government right now, it is not in an easily absorbable format. So it’s going to take us a couple days to process it. And we will get that out as soon as is feasible. 

Which reminds me. We’ll be covering all of this and all of its, and to severe effects when we do our quarterly briefing, our question time when people can ask me questions in real time on April 9th. 

It is for our Patreon subscribers at the top tier. So sign up now and learn about all these tariffs as they happen. And then we’ll pull it all together for you and show where it’s going to take the American and the global economy over the long run. See you soon.

The Future of NATO’s Supreme Allied Commander + Live Q&A Reminder

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We’re only one week out from the next Live Q&A!

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

You can join the Patreon page

The Supreme Allied Commander position in NATO allows the US to lead allied forces in wartime. However, the Trump administration is considering withdrawing the US from that position (mainly for cost-cutting reasons).

Stepping away from the Supreme Allied Commander position would signal America’s withdrawal from NATO, since US forces cannot legally be placed under foreign command. There must be some strategic misunderstanding of the power this title holds, a lack of expertise in Trump’s circle, a penetration into Trump’s thinking by Russian propaganda, or a combination of all of those.

Should the US move forward with leaving NATO leadership, US power projection in Europe would be crippled and another box on the Russian wish list would be crossed off.

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

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

Transcript

Hey, all. Peter Zeihan here, coming to you from a sunny Colorado. Today we’re going to talk about something that is making the rounds within the Trump administration as it relates to the NATO alliance. The idea is that the United States is going to withdraw from something called the Supreme Allied Commander position. Now, the Supreme Allied commander, as it sounds in times of war,  takes command of all local military forces that are affiliated with the Alliance. So in a hot shooting war, the US would take control of the world’s third, fourth, sixth and seventh largest navies and the world’s fourth, fifth, sixth, ninth and 10th largest armies, as well as that of all the smaller members of the European structures. And the question is, why would you give that up? 

Well, keep in mind that NATO is the most powerful alliance in human history, and it was founded by the United States, and it was run by the United States. And, yes, the lion’s share of the equipment and the troops come from the United States. But since all of the Europeans have regional militaries, while their militaries may be stronger, they’re all focused on one area as opposed to ours, which is spread out around the world. 

So collectively in the European theater, the rest of the European forces actually are on par with what the US can do. So a massive force multiplier there. The Trump administration says that the NATO countries, the European countries, have been taking advantage of the United States and trade. They need to defend themselves. But how? Giving this up would be a big deal. It would be the end of American ability to project power throughout all of Europe. 

You see, unlike the other NATO countries who can sublimate their military commands to American authority, the reverse is actually illegal here in the United States. So if we give up the ability to command Europe and say, a European has to take that position, we’re also saying that no American forces are now available for NATO use, and that’s functionally leaving the alliance. 

Now, I personally think that would be a horrible idea, but I think it’s going to happen anyway. The Trump administration seems fairly hellbent on leaving NATO. Three things going on here. Number one, the Trump administration seems has a very inaccurate idea of how militaries work. Because in a time of war, when you need the help to be able to automatically, reflexively just be able to take  control of everyone else’s militaries in the alliance and just go through. 

How much is that worth to you? How much is it worth to have that on standby the whole time? It’s worth the cost of a trade deficit, in my opinion. The second issue is that Trump doesn’t really have anyone in his circle telling him otherwise or correcting him on these things. One of the weird things about the Trump administration is, you know, normally when you lose an election, they’re out of power  for a few years. You try to learn from your past mistakes. You try to build a team that is competent, that fills in the gaps with the things that you don’t know. And you get people who are experts in legislation so that when you come back, you can get everything pushed through Congress as quickly as possible. 

Codify what you want and have it outlive you. Trump’s taken the opposite lesson, and he’s removed everyone from his circle who knows anything about anything, because people who know things tend to say that they know things. And that means that Trump is not always the person who appears as the smartest one in the room. It’s the difference between a good leader and a bad leader. 

That means that Trump is making the decisions based on the advice that comes to him from a handful of people he trusts, and the people trusts aren’t honest with him, which is bring us to the third problem. Russian  propaganda has penetrated up to and including the white House. Last week we had Donald Trump repeating some particularly interesting propaganda. 

Notice he was saying, in true social posts and in interviews that the Russians had surrounded several thousand Ukrainian troops, and he was pleading with the Russians to not kill them in what would be a bloodbath. Here’s the thing that never happened. 

In fact, that didn’t even occur in Russian propaganda in American political circles. That was Russian propaganda for Russian citizens to try to convince the Russian citizenry that the war in Ukraine was going very well. 

Somehow that little bit got lodged in Trump’s mind. And it didn’t come from the CIA or the FBI or the Defense Department. It either came directly from Vladimir Putin or through one of the other vectors that the Russians have been using to influence this administration. So we have a white House that is making public statements and policies, basing on an internal Russian propaganda. 

Now. And if I could think of one thing that the Russians want in the short term from this administration, it’s to destroy the NATO alliance, which was always formed to contain Russian aggression. And here we are.

The American Reindustrialization – A (Stalled) Progress Report

American reindustrialization image

I recorded this video before Trump took office for his second term. At the time, this video outlined the trajectory the US was on. We held off on releasing the video because…well, everything was going to be changing. So, here is a look at where we could have been. In the coming days, we’ll unpack where things are heading now.

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

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

Transcript

Hey everybody. Peter Zeihan here, taking a question from the Ask Peter Forum on the Patreon page. And that is where is the United States or where do we stand in the re industrialization process that started a few years ago? Just a quick backgrounder. The Chinese population is plummeting. And we now have about the same number of people in China above age 50 as below. 

And so we’re looking at an economic collapse over the course of sometime in the next decade. And so if the United States still wants manufacturing goods, we’re gonna have to get it from somewhere else. And the quickest, easiest, cheapest way to do that is to build out the industrial plant within North America. And to that end, we have seen industrial construction spending. 

Think of that as the construction of factories, expand by a factor of ten over the last five years. So we are definitely hitting the ground running in a number of sectors. The two sectors that have seen the most activity are things that are energy adjacent. Taking advantage of the fact that the United States has the largest supply of high quality crude in the world and the largest supply of natural gas in the world, retooling our entire chemical sector to run off of, especially the natural gas. 

And now using all of these intermediate products that we get from the processing of this for other things going into heavy manufacturing. So that’s a big part of the story that is moving very, very fast and is being moved almost exclusively by, domestic economic concerns without any push from any politicians anywhere in the system, because it’s just we have the most and the cheapest. 

And so the next logical step is then to move up the value added scale. That’s proceeding just fine. Most of the stuff where the government has put its finger on the scale involves electron IX, and especially computing. Think of the Chips act and the IRA, which are designed to bring back the manufacture of things like semiconductors. Now, it’s not that I think that any of this is a bad idea. 

I just think it’s kind of missing the primary need we’re going to have. There are 9000 manufacturing supply chain steps that go into the manufacture of a high end semiconductor. And the Fab facility, while important, is only one of the 9000. And there are any number of ways that the United States can build out the supply chains, in addition to the fabs that are a lot cheaper than the fab. 

So I’m not saying no. I’m saying it’s really, really myopic, focusing on one very, very specific piece when you need all of them. If you’re looking for a recommendation, I would say the single biggest restriction on manufacturing in general is going to be processed materials. I know that doesn’t sound very sexy, but it really is a problem. 

In the United States, we have steadily outsourced pretty much anything that is energy intensive and might have an environmental footprint that we don’t like. The Europeans have done the same to a lesser degree, the Japanese the same thing. And most of the stuff has gone to China. It’s not that China is better at it, a more efficient at it. 

It’s just that the Chinese massively subsidize everything and their environmental regulations are significantly lower. So taking raw materials like bauxite and then turning them into an aluminum and then aluminum, the Chinese control roughly 60 to 70% of that market for something like gallium, which is a byproduct of aluminum processing, it’s closer to 90% for things like rare earths, it’s over 80%, for lithium. 

It’s not that they have the lithium that comes from Australia and Chile, but they take the lithium concentrate in the lithium ore and they turn it into metal in China. And you can just go down product after product after product for the Chinese. Basically, if cornered, this market. Well, if the Chinese go the way that I’m anticipating all of that’s going away and we’re going to make our own, it’s luckily there’s nothing about these, material processing technologies that is difficult in most cases. 

You’re talking about things that were developed over a century ago, and it would probably only take a couple of years and a few billion dollars to set up for each specific material that we need. So not hard, but something that is cheap and quick is not the same as saying that it is, free and overnight. Right. 

And until we do the work, we haven’t done the work. And if China cracks before we do the work, then we have to figure out how to re industrialize without lithium or aluminum or cobalt or on and on and on and on and on. So this is something where I would expect state governments to take the lead, because it’s ultimately about an environmental regulation issue paired with the energy intensity that’s required. 

And so most of this is probably going to end up going on in the Texas or Louisiana coastal regions, where those two things kind of come together right now nicely for the federal government to be part of the solution. But considering politics in the US, I think that’s a kind of a high bar. One other broad concern, no matter what the industry is, no matter what is reshoring, no matter what, we’re expanding automotive, aerospace, insulation. 

You know, take your pick. All of it requires electricity. For the last 35 years, the United States has become a services only economy to a certain degree. We do manufacturing still, in terms of net value, we produce more in the manufacturing sector than we did 35 years ago. But everything else has gotten so much bigger. And while the AI push with data centers does require more electricity than what we’ve done before, as a rule, moving things, melting things, stamping things, building things requires more energy than sitting at a computer and typing. 

And so we have, for the first time in 35 years, a need for a massive expansion in the electrical grid. We probably overall need to expand the grid by about half. And half and expand, generating by about half. And there are certain parts of the country like the Front Range, Arizona, Texas in the south, going up to roughly Richmond, that probably need to double their grid as soon as possible, because if you don’t have enough electricity, it’s really hard to have meaningful manufacturing. 

The problem in the United States is we don’t have a grid. We’ve got one that’s basically from the middle of the Great Plains West, from the middle of the Great Plains East, and another one in Texas. But even that makes it sound like it’s more unified than it is, because almost all utilities are state mandated local monopolies. So they all have their turf, and all of them have to individually make a case for expanding their electricity production, because that cost ultimately has to be passed along to someone else. 

One of the reasons why I’m so interested in things like small modular nuclear reactors is if you get the tech folks to pay for that, then all of a sudden you get the power and you don’t have to go through all the normal regulatory rigmarole because you have to, as electrical utility, prove to your regulator that, what you’re doing is in the best interests of your end consumers and until you have the manufacturing capacity, it’s hard to make the argument that you need electricity to make manufacturing capacity. 

So it’s a very chicken and the egg thing. The easiest way to get around this would be for state and regional electrical authorities to loosen up the ability of one electrical mini grid to provide electricity to another. That would do two things for us. Number one, it would increase the amount of transmission we have within the system, allowing power to go from where it’s generated to where it’s needed. 

And second, If you’re in a rural area that’s not likely to get, say, a major chip’s factory, you could still build a power plant and export it to an urban center that is likely to need a lot more electricity, and all of a sudden you can get someone else to pay for your electricity development in your own region. 

So that is where I’d say the shortfall is. It’s a solvable one. It’s just one that we need to do as soon as possible. Because if we say, wait ten years and the Chinese are gone, then we have to do this all from scratch with less money, less labor, and everyone trying to do everything at the same time. 

And if you think inflation was uncomfortable for the last three years, nothing compared to what that environment would be like. All right, that’s it for me. Take care.

Introducing the Next Generation Air Dominance Platform, F-47

President Trump and Defense Secretary Pete Hegseth have announced the approval of the Air Force’s newest toy, the Next Generation Air Dominance (NGAD) platform, aka the F-47 fighter jet.

In recent times we’ve seen the very impressive F-22 built for air superiority and the lackluster F-35 designed as a multi-purpose aircraft. Shifting priorities have sidelined the F-22 in favor of the F-35, but how will the F-47 fit into the picture? Here are some of the big concerns I have.

This thing will be expensive, posing problems for foreign buyers. The details are still unclear on this aircraft, so we’re not sure if the limitations that faced the F-35 will persist. Since this will be an air superiority fighter, a ground attack jet will still be needed. And given the evolving tech, manned fighters could be rendered obsolete before reaching full deployment.

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

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

Transcript

Hey everybody. Peter Zeihan here, coming to you from a sunny Colorado. Today is the 21st of March. And there was just a press conference between American President Donald Trump and American Defense Secretary Pete Hegseth, where they announced the launch of a new fighter program called the NGAD, the next generation air dominance fighter. It’s been, dubbed the F 47 because it’s Trump’s the 47th president. 

 But anyway, you can’t make this stuff up anyway. It in theory will be made by Boeing and should come into manufacture in a few years. That’s the goal. Before we go forward and talk about what it can do and implications, let’s talk about how we got here. So if you dial back to the 1990s and the early 2000, the Defense Department realized that they had a window. 

The Soviet Union had collapsed, and the Russian Federation, which emerged from it, was a pale shadow of its predecessors. And so there was going to be an extended period of time where the Soviet slash Russians weren’t going to be able to develop new air products. No new bombers, no new fighters. They did get a couple off the drawing board, but they were never able to produce more than one of them at a time. 

And even now, 35 years later, they only have 12 of some of their more advanced fighters. And that meant you had an opportunity to skip a generation. So Donald Rumsfeld, who was working with the Defense Department at the time, had this idea that we will look at the best technologies we have available right now and build the absolute minimum that we possibly can, and then research the next generation. 

Back at the time, we were dealing with F-15s and F-16s and the two programs that were greenlighted to proceed on that limited production basis were the F-22 air superiority fighter, which I think is one of the most badass pieces of military technology I’ve even heard of. It can hit supersonic speeds without using its afterburners, and all of its weapons are internal bay, so it has the radar cross-section of a small bird. 

I mean, it is bad ass. And then the other one is the F-35 joint strike factor, which is a flying pig. From my point of view, yes, it’s better than what we had, but its range isn’t very good. And the technology that’s gone into it has had all kinds of teething pains, and this has driven up the cost of the fighters to over $100 million per fighter. 

And it’s not very good at doing what it needs to do because its range is so limited. And that’s even before you put external weapons on it. The problem is it’s a Joint Strike fighter. It’s designed for both air to air combat and ground assault. And by being a multi-role platform, yes, you can do more, but you don’t do any of it particularly well. 

So we only made a few less than 200 of the f-22s, even though they are the perfect tool for the job, because we also need ground strike. And so the decision was made to do more and more and more of the F-35s, despite its many, many shortcomings. And that meant looping in lots of allies in order to help defray the overall production cost. 

And that brought it down to $100 million per airframe. Anyway, Rumsfeld and people like him thought, you know, we’ll just build the minimum we possibly can and then launch forward. And then the war on terror happened. And in the war on terror, what we discovered is we don’t need an air superiority con or a fighter against the Taliban because they don’t even have blimps, much less jets. 

But we do need ground strike. And so the F-22 was pushed to the side, kind of stuck with that initial plan of just a limited run. And the F-35 went into mass production. And we’re getting lots and lots and lots of those. Fast forward to today, because of the war on terror, we spent 20 years fighting ground wars, and we weren’t able to put the resources that would have been ideal under the Rumsfeld plan into the next generation. 

We’re only now getting there, took this long, and the end gap is supposed to be an air superiority fighter. The next generation after the F-22. Well, that leaves us with four complications. Problems. The first is cost. We saw the cost of the F-35 go up and up and up and up and up, and the end guard got a really nasty review from an internal Pentagon audit. 

I think it was just last year or the year before where they said it looked like the cost could be upward of $300 million per airframe. And the days of us being able to spread that out across the alliance are gone. The Trump administration is careening very rapidly to breaking most of our alliances, including the NATO alliance, which is where almost all of the F-35 sales we’re making are going. 

And every country that is committed to buying them is now rethinking it. Because if the United States is not going to be there in a real fight, not only are you not getting the implicit security guarantee that you thought you were getting, but if the Americans are responsible for all the tech and all the technicians and all the repair work and all the servicing, all the software and a lot of the weapons, do you really want to be dependent on the Americans at all in this brave new world we seem to be falling into so the F-35 is likely to get even more expensive, and no one is likely to sign up for the end guard at all. Problem two range. This is a black issue. It’s just an issue of, classification. We don’t know what the range of the guard is yet. It is in limited production, very limited, basically handmade. Nothing manufactured. The manufacturing wouldn’t be in for a few years yet. 

Three at the absolute low end. So this is a weapon system for the future, not for tomorrow. And until we know that range, it’s really hard to know if this is going to give us some of the advantages of the F-16 and the F-22, or weigh us down with some of the restrictions of the F-35. We’re just going to have to wait for more details on that. 

The third problem is that the end guard is going to need a complement. It is an air superiority fighter in the vein of the F-22, and we will still need something for ground attack. And if it’s going to be the Joint Strike Fighter, if that’s what we’re going to use for the next 30 years, then that puts some really huge limitations on what the United States can do militarily. 

Its range is just about 600 miles. Not great in terms of deep strike. And if we are moving into a world where the United States is walking away from most of its alliances, then we’re losing all the forward bases that allow us to launch these things in any meaningful way in the first place, which means we will also need a new ground strike jet. And that is an entirely new program that is going to have its own cost structure. And overlaying all of this is the question of technology during the course of the last 60 years. We haven’t seen actually almost 80 years. We haven’t seen a lot of changes. I mean, yes, yes, yes, we’ve gotten better at stealth. 

Yes, yes, yes, our missiles have gotten more accurate. All that’s true. But we haven’t really seen a change in what, a fighter or what a fighter bomber does. Until really recently, in the last few years, we’ve had building breakthroughs in things like materials science and digitization and energy transfer. And we don’t know where this is going to take us in terms of military technology. 

Yet the end guard looks interesting to me. It’s basically like a narrower version of the B-2 bomber, which is a badass piece of equipment, but it’s not a fundamental break. The stealth is cool. Don’t get me wrong, stealth is awesome, but it doesn’t do anything that you wouldn’t expect an air superiority fighter to do. These three breakthroughs in technology are in the very, very beginning stages, giving us drone technology, and we have discovered that the Ukrainians, for less than 20,000 a pop, can build a thousand drones that can saturate a battlefield, or for something closer to $200,000 a pop, develop rocket drones that can strike targets that are about as far away as the F-35 can reach. So we’re seeing these newer technologies come in and we don’t know how they’re going to mature. And so investing billions, tens of billions, hundreds of billions into a new manned fighter program, you got to wonder if this is the right call. I’m not saying it’s not. I’m saying we don’t know. And in a world where the United States is walking from its alliance structure, the new systems are probably not appropriate to what bases we’re going to have in a few years. 

I don’t mean this so much as a condemnation of Trump, although there’s plenty of that going around right now, but just a recognition that as our technological envelope evolves, one of two things has happen. Either we develop technologies to match the geography of our deployments, or we change our deployments to match the evolution of the technology. 

And there’s plenty of examples throughout history of both happening. We don’t know where we’re at yet. What we do know is if we try to do both.

Getting Ready for Trump’s Tariffs

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

If you look back at my videos covering a potential future recession, you’ll notice that I really wasn’t too concerned in the short term. Well, this next set of tariffs to be announced in early April, might change all of that.

The 25% tariff on trade with Canada and Mexico will increase costs for several industries and potentially shut down key manufacturing states. But it doesn’t stop there. The 40% tariff on imported food will be devastating for low-income families and could push millions below the poverty line. And again, it doesn’t stop there.

The proposed reciprocal tariffs could create economic chaos. Besides the bureaucratic nightmare that would ensue, US consumers and businesses would have their feet swept out from under them.

As the US begins to prepare for the decline of Chinese manufacturing, the slowing of industrial expansion caused by these tariffs couldn’t come at a worse time. Should these tariffs go into effect in early April, you should get ready for a US recession (and almost certainly a more severe global economic downturn).

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

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

Transcript

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

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

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

The Trump administration has had this on and off again tariff policy versus everyone, but particularly heavily concentrated here in North America targeting Mexico and Canada. We’ve had 71 specific tariff policies announced since Donald Trump became president. And the biggest one is a 25% tariff on Canadian Mexican exports, which has gone on and off and on and off and on and off. 

Based on the diplomatic back and forth among Ottawa, Washington and Mexico City, what that’s done is it’s reduced the argument that investing in North America is a good idea, because if you’re going to have tariffs on American manufacturing, and that’s exactly what this is, because U.S. manufacturing is not like historical manufacturing. It’s an intermediate goods trade. 

So for example, the intermediate goods trades just among Canada and the United States is about two thirds of $1 trillion. And that’s products going back and forth and back and forth and back and forth, having value added by whatever company happens to be best at that space. We got twice that sort of relationship with Mexico and if you slap a 25% tariff on that, it gets applied every time something crosses the border. 

One of the fun facts of the world today is we have basically absorbed every Canadian province and every northern Mexican state into the American industrial behemoth. And by putting tariffs on it, we’re basically breaking up our own system, particularly in industries that have a lot of moving parts, like aerospace and automotive. Well, one of the tariffs that’s supposed to hit in the first week of April, specifically per second is an establishment of that 20% tariff. 

Trump says he’s not going to offer any exemptions this time along. No more delays. We’ll see. Because he seems to think that 60 days is a enough time to unravel 40 years of supply chain of supply chain integration, which is, you know, amusing. 

If this goes down as Trump says, it’s going to do, it’s going to mean an immediate recession in the manufacturing space in Washington, Missouri, Colorado, Kansas, Texas, Alabama, Tennessee, Kentucky, South Carolina, Wisconsin, Michigan, Indiana and Ohio. These are the states that are big into either aerospace, automotive, or more likely, both. And you’re basically looking at a shutdown in those sectors, because every single vehicle we produce in this system is going to go up in price between 4 and $6000. 

And there is not a model of jet that Boeing is capable of producing. That with a 25% internal tariff can still produce more cheaply than what we can get from Europe’s Airbus. So we’re not necessarily looking at those industries being dead forever. But the adjustment period will require years. Okay. That’s only the first piece. The second piece is agricultural tariffs again kicking in the first week of April. 

And if it goes according to plan, April 2nd again, it’s a 40% increase. Now. Right now the United States imports about, one sixth, one fifth based on who’s doing the numbers of the amount of food that we eat. Keep in mind that what we import is stuff that we cannot, cannot, cannot produce, whether it’s because of climatic issues or because of seasonal issues. 

So, for example, it is March right now, blueberries can’t be produced in the United States right now. Those come from the southern hemisphere. Let’s say you want seafood unless it’s produced in the American waters, something like Pacific cod is simply produced too far away. We can’t substitute that coffee’s another good one aside from a little bit coming out of Hawaii. 

And I love me some Kona. The other 99% of our coffee consumption comes from places that are basically tropical or semi tropical and uplifted with elevation. That’s where coffee is produced. And it’s like that for every single product category. There are very few places where there’s any meaningful competition between imported foods and local foods, because the local foods are going to be so much cheaper to produce, assuming we can produce them in the season in question. 

So a 40% import tariff on agricultural products is hardly going to change at all what American agricultural producers produce. Because if they could produce those things in those seasons, they would already. So that just hits people’s pocketbooks directly. 

And the bottom 20%, the bottom quintile of Americans by income, one third of their money is spent on food. So you’re talking about knocking somewhere between 10 and 20 million people below the poverty line. Just from that one thing. And the scary thing is these first to Canada, Mexico and AGG, these aren’t the big one. The big one is the third one, something called reciprocal tariffs. 

Now on the surface reciprocal tariff sounds like it’s fair like it’s simple. If they put a 20% tariff on I don’t know steel tubing. We put a 20% tariff on their steel tubing. That ignores a couple of things. Number one, it puts your tariff policy completely at the mercy of their tariff policy. So you lose policy flexibility. 

Number two, it ignores things that we import that we don’t export. Coffee is a great example. Why would we put a 50% tariff on coffee when we don’t even export any. And then third, it’s a problem from an administration point of view. Official I know it sounds kind of a bit of a snoozer, but it’s really a deal killer because right now we have dozens of tariff policies on different products, and Donald Trump has added 70 to those over the course of his term. 

So far in this second round, there are tens of thousands of product categories. There are 200 countries that comes out to 2.3 million tariff policies, which would create a bureaucratic abomination from which the world would never recover. There’s a reason why we unilaterally abandoned this sort of tariff policy a century ago and never looked back. Now, Trump, in the last 72 hours, I’m recording this on the 21st of March. 

He has come up with some modifications on that. So we don’t know what the final shape is going to be. And he’s suggesting now that it’ll be a single number per country with probable call carve outs for things like manufacturing or tech or agriculture or defense. So instead of 2.3 million, we only have a thousand policies. And that theoretically could be applied. 

But keep in mind, all of these reciprocal tariffs are on top of everything else that he’s doing. And for a country that imports as much as the United States is, this is absolutely going to be a massive shock to the consumer. You basically have three types of economic activity government spending, which if Trump does what he says he wants to do, is going to be stall to shrink, although that’s not the impact so far. 

Number two, industrial spending that’s been flatlined now for the last two months. And third is consumer spending, which is the biggest one of all these three things together are more than enough to cause a recession in the United States and something worse than a recession on a global scale. Now, I have spent my professional life warning people that globalization is coming, and when it does arrive, it’s going to be a shock for some countries more than others. 

With the United States being of the countries that’s on the less side. And in the long term, a demographic industrial strength means that we will probably be just fine. But getting from here to there is going to be a bit of a rough ride. The Trump administration’s policies, when it comes to tariffs, are going to make this a much longer transition and a much harder ride than it would need to be otherwise, because I ultimately have my eye on the disintegration of China’s a unified nation state with all that industrial plant going away. 

And we need to massively expand our industrial plant if we’re going to prepare for that world and just the Canadian Mexican tariffs before you consider the rest has basically put that process on hold and we’re losing time. And if these tariffs go down in the first week of April like it sounds like they’re going to, we’re going to lose a lot more.

Getting Ready for Trump’s Tariffs – TEASER

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

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

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

Click here to learn more

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

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

Transcript

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

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

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

Why You Shouldn’t Expect Good Policy

Photo of the US White House

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

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

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

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

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

Transcript

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Russia, NATO, and Negotiations

NATO flag with a Russian pin and ammunition

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

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

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

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

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

Transcript

Forthcoming…

The Russian Reach: Russia’s Wish List Part 2

Flags of USA and Russia merging

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

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

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

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

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

Transcript

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

The Russian Reach: Russia’s Wish List Part 1

Flags of USA and Russia merging

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

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

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

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Transcript

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

The Russians think that RFK is so stupid. 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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