Beyond the Election: Part II

Part I of this newsletter published a week ago, before we had enough U.S. states reporting election results to call the race. Now, barring something truly odd, Joe Biden has won a more than sufficient number of states to be considered President-elect.
 
For those who follow my work, it should come as no surprise that I’m not a big fan of either sitting president Donald Trump or the new President-elect. I’m a foreign policy guy and neither man has shown the interest in or competence to build something that will outlast him.
 
This isn’t entirely their fault. The United States is the least involved economy in the global system as measured as a percent of GDP, with the single biggest chunk of that involvement wrapped up with America’s neighboring NAFTA partners. My preferences aside, there is no burning need in the United States for global engagement. No wonder that aside from issues relating to the September 11, 2001 attacks and the Iraq War, Americans haven’t considered foreign policy an above-the-fold issue for the bulk of the post-Cold War era.
 
But this new norm will not last forever. Americans will care about the world again someday. The question is what does the road from here to there look like?
 
There are two ways the Americans might reengage in the future.
 
The first is the internal route. The (always fractious) American political system is, at present, in a state of breakdown. American first-past-the post electoral laws – the winner for each seat need only gain one more vote than whoever comes in second place – forces a two-party system. That induces the parties to behave certain ways. If they focus too much on explicit policies, they tend to alienate large swathes of the electorate. Instead they throw wide nets to include as many different factions as possible: evangelicals, business owners, pro-lifers, national security enthusiasts and fiscal obsessives for the Republicans; pro-choicers, environmentalists, socialists, organized labor, the youth and a rainbow of minorities for the Democrats.
 
But there is nothing hard-and-fast or permanent about these coalitions. As culture and technology and the economy and the world evolve, so too do the factions. Today the factions are shifting furiously. Union voters have all but become Trumpist Republicans (the AFL-CIO chief was in the Oval Office endorsing Trump’s NAFTA renegotiation while the rest of the Democratic coalition was hanging with Nancy Pelosi putting the finishing touches on Trump’s impeachment). National security voters are sniffing about the Democrats (every politically active living former intelligence chief and Secretary of State and Secretary of Defense endorsed Biden rather than Trump). Businesspeople – equally appalled by Trump’s erraticism and Biden’s tax plans – are in the wind.
 
Such reshuffling is normal. Healthy even. Political coalitions reflect strategic, cultural and economic realities, and over time those realities evolve. No political coalition is forever. No party is forever. The War of 1812 did in the Federalists. Westward expansion birthed the Democrats. The Whigs withered away as America geared up for its Civil War. The trauma of the Great Depression saw Black Americans abandon the Republicans for the Democrats while business leaders went the opposite direction. Today’s reshuffling – a reaction to the Cold War’s end and the Digital Revolution – is America’s seventh.
 
The Americans cannot even begin a conversation with one another about what they want out of the world until they’ve sorted out their internal political evolution. Only then can they begin to craft a grand strategy, and only then can they begin to assemble and implement a meaningful foreign policy. But the reordering takes time. The last party restructuring in the 1930s and 1940s took twelve years. This time around the Americans are only in year five. That means the global superpower is out to lunch until a point far closer to 2030 than 2020. What engagement occurs has been reduced to little more than presidential whim.

The second route is externally driven, and far, far more dangerous: Something pops up that scares the Americans, forcing them back into the world.
 
This was the strategy of Osama Bin Laden: attack the Americans in a way they could not ignore to induce them to slam sideways into the Middle East. OBL’s thinking was the Americans would partner with the region’s secular leaders to hunt down al Qaeda, and that partnership would so enrage the ummah that the Islamic masses would rise up and overthrow their rulers, ushering in a new Muslim Empire.
 
It obviously didn’t work out the way he had hoped. Yes, the Americans became embroiled in a pair of decades-long wars, and yes, those wars contributed to the Arab Spring and Arab Winter which in turn shattered the regional order, and yes, those wars and that shattering pushed a half dozen countries – so far – into de facto collapse.
 
But a pan-Islamist empire? The region is further from that now than ever. Of more lasting significance, by 2020 the Americans have largely abandoned the region to its own devices. America now boasts a military that is not only rested, recuperated and rearmed, but battle-hardened.
 
Any new American lash-out would undoubtedly be more violent and holistic than their recently ended Middle Eastern adventures. In part it is the inexorable march of military technology: America’s stealth bombers can now strike any position on Earth from their home bases in Missouri, while American drones can dominate a battlefield without need of a single solider in theater. Americans may be gun-shy about invading and occupying other countries at present, but such weapons systems make them eminently willing and able to devastate anything, anywhere, at any time. After declaring victory, the Americans don’t even need to go home because they will have never left in the first place.
 
But the bigger piece of the picture is economic. In the two decades since the September 11, 2001 attacks, the United States has become economically divorced from the wider world. The shale revolution has severed the thickest, most strategically significant link between the American economy and global norms. Integration with Mexico has reduced American dependence upon global manufactures. The entire American political spectrum now firmly anti-China, Americans are ready and willing – even eager – to cut the remainder of the ties that bind.
 
In the 2000s the Americans were always cautious about where and how they acted in an economic sense. For example, they knew Saudi elements played leading roles in the 9/11 attacks, yet the Americans largely spared Saudi interests for fear of repercussions in the oil market. If provoked today, the Americans truly would not care about what the world would look like the morning after any retaliatory actions, because they are now largely immune to any collateral damage.
 
Consider America’s post-Cold War conflicts: Somalia, Bosnia, Kosovo, Afghanistan, Iraq. Sure, none of the places turned out to quite be Wisconsin, but imagine for the moment if the Americans had treated them all like Yemen: liberally applying ammunition to strategic bombing and assassination efforts and never sparing a thought to occupation or reconstruction. Simply wreck all economic and political infrastructure and then … leave.
 
This is the new normal for American policy. Any country stupid enough to provoke the Americans now will get something far harsher than the fate which ultimately befell OBL.
 
Massive capacity. No concern for credibility. No hint of a goal. No care for the aftermath. It’s a volatile, dangerous mix. And until the Americans can find a new internal balance, it’s the world we all live in.


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Beyond the Election: Part I

So…we had an election. It has gone down to the wire. At the time of this writing mid-day November 4 the votes are still being counted. America’s politics have significantly de-matured since the contested election in 2000 between W Bush and Al Gore, so even once a winner is declared I expect significant court challenges by both sides.
 
We’ll get to some of the implications of this election’s outcomes for the United States in Part II, but first I want to close the book on the globalist era. Doing that first requires a look back to the heyday of American globalism.
 
Way back when in a 1994 debate on Iraq at the United Nations Security Council America’s then-Secretary of State Madeline Albright famously noted that Americans “will behave, with others, multilaterally when we can and unilaterally when we must.” At the time pundits, rivals and allies alike took the statement as a one-off from a politician serving an administration famous for its lack of interest in foreign affairs of any type, who simply wished to avoid a debate over what many thought was a questionable security policy. With the benefit of hindsight we recognize Albright’s statement for what it truly is.
 
A tell.
 
The early 1990s were a heady time in America. The Soviet Union had just collapsed. Americans were basking in the glow of a world in which they not only knew no equal, but no challengers. Democracy was on the march. Globalization was an unalloyed positive. History was over. America was forever triumphant. All things were possible. The free family of nations would rule a world safe eternal.
 
Albright was among the most globally-minded personalities within the Bill Clinton administration, an administration that was already by far the most multilateralist in American history. Yet even in 1994, near the height of America’s post-Cold War exceptionalism fever dream, the most globalist of globalists let slip that the Americans really have no problem going it alone.
 
For the half century before Albright’s tenure, the globalized world was an American construct. The United States found itself facing down Joe Stalin’s Red Army and quickly realized it needed allies. Not to back America up or stand shoulder-to-shoulder with it, but to willingly place themselves between the Americans and Soviet forces. Needless to say, that was a big ask. And so the Americans bribed everyone. The American Navy patrolled the oceans for all. The American financial system and consumer market were opened to all. The American nuclear umbrella was extended to all. In exchange, the Americans obtained the right to command a global alliance to confront, contain and beat back the Soviets.
 
What most in today’s ecosystem of political, economic or global affairs forget – whether they predict the rise of China or the centrality of the Middle East or the eternity of Europe – is that the Americans view these Cold War structures as a trade. Guns for butter if you will. And since the Americans no longer see a need for help with the guns, they feel the world can make its own butter. Ever since the time of Albright, American interest in the world has declined steadily, and American voters and have consistently selected presidents who care less and less about the wider world.
 
Until now, when the Americans are at best actively dismissive – and at worst actively hostile – to nearly all things international.
 
The question is not will Americans return to the world in the aftermath of the 2020 general elections. They won’t.
 
In fact, from my point of view, we really aren’t looking at any meaningful changes in America’s global position one way or another.
 
Donald Trump is the known quantity; No one – Trump included – expects constructive international engagement in a second term. But Joe Biden was hardly a better choice if one’s desire is an engaged America. What foreign policy he has discussed focused on a degree of economic nationalism that is positively French. Biden’s anti-Chinese plans are far more adversarial than the Trump administration’s. The region which would have suffered the most under President Biden would have undoubtedly be Europe. The Europeans were largely dismissive of Barack Obama’s call for economic stimulus and military assistance in Afghanistan, leaving a sour taste in the mouth of the entire Obama administration, then-Vice President Joe Biden included. And should Biden be the next president there was never even a hint of a possibility of him reversing what had become a decades-long American withdrawal of military forces from…everywhere. Biden’s talk was one of closing off trade and borders and military commitments but somehow translating that into more American involvement and leadership. Um…no. That’s not how that works.

The question isn’t even will American credibility return in a post-Trump world. Americans do not care about their credibility. If they did they would not have abused their allies (W Bush), ignored their allies (Obama), or insulted their allies (Trump). Instead, what passes for American foreign ambition has declined with each of the past four administrations. Clinton sought gravitas without action. W Bush sought loyalty without reward. Obama sought isolation in all things. Trump simply seeks disengagement. And a President Biden has made it pretty clear he plans to sacrifice foreign connections to deal with domestic issues.

No, Americans care not about their credibility. It is capacity they crave.

Even the least charitable reading of the American system credits it with a massive – and massively insulated – economy. Only about one-ninth of the U.S. economy is dependent upon trade, and nearly half of that is trade within NAFTA, America’s local trade alliance. The shale revolution has not only made the United States net oil independent, it has reduced the costs of oil production in America to levels below that of the Persian Gulf. America’s university systems remain without peer. Add in COVID-related disruptions to global supply chains, and the United States is going through the greatest re-industrialization process in its history.

The United States also has the slowest aging population of the entire developed world save New Zealand, with even “young” countries like Indonesia, Brazil and India aging at least three times as quickly. The Chinese on average became older than the Americans back in 2018. Alone of the significant states, the Americans only need engage with others economically should they choose to.

Militarily, the United States is the only country in the world that maintains a long-reach deployment-capable military force. Each of its ten (soon to be eleven) supercarrier battle groups can outsail and outshoot the rest of the world’s combined navies. Only the United States can maintain open seas access out of reach of their own coastlines. As to boots, only the United States can deploy at a moment’s notice a quarter-million troops anywhere in the world. Any other country would struggle mightily to shift one-tenth as many.

America oozes capacity. That’s not the problem. The problem is America’s goal.

The country doesn’t have one.

I could talk about shoulds. The United States should reforge its alliances to seek new, higher-minded aspirations. It should leverage what’s left of global institutions to promote cooperation among like-minded nations. It should trade access to its consumer and financial markets to promote free enterprise and human rights and democracy in order to expand the roster of those nations. It should use its global reach, economic heft and technical prowess to lead efforts to rein in greenhouse gas emissions, expand education and health, and box in countries who would use access to global markets for ill gains.

But these are shoulds, not wills. People who believe as I do – that the United States ought to play a positive role in making the world a better place – have seen their preferred candidate lose in each of the seven presidential elections leading up to 2020. In the election just concluded, we didn’t even have a horse in the race.

A different sort of thinking now dominates American thought on all things international. The “America First” of the Right is reflexively hostile to the world. The “America First” of the Left is reflexively hostile to American involvement in the world. The “America First” of the middle just finds the world exhausting. Americans have chosen – repeatedly – that they are simply done.

Or at least they are done for now.


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The economic lockdowns in the wake of COVID-19 left many without jobs and additional tens of millions of people, including children, without reliable food. Feeding America works with food manufacturers and suppliers to provide meals for those in need and provides direct support to America’s food banks.

Food pantries are facing declining donations from grocery stores with stretched supply chains. At the same time, they are doing what they can to quickly scale their operations to meet demand. But they need donations – they need cash – to do so now.

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Video Dispatch IV: America’s Mid-East Partners in Disarray

The pullout of US troops in the Middle East is likely to continue after November’s presidential election. We’re already seeing significant changes in how the Middle East works, including what sorts of antics local players can get into when the US is distracted. And for once, Iran isn’t at top of mind. Iran is a known quantity at this point, making whatever moves it can from a very constrained set of options that it has been relying on since 1979. Rather, it’s the Saudis, the Turks, and everyone else who has been wholly dependent on American protection since the end of the Cold War (if not World War II!).   

NB: at 1:46 I definitely meant to say *Turkey.*


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The economic lockdowns in the wake of COVID-19 left many without jobs and additional tens of millions of people, including children, without reliable food. Feeding America works with food manufacturers and suppliers to provide meals for those in need and provides direct support to America’s food banks.

Food pantries are facing declining donations from grocery stores with stretched supply chains. At the same time, they are doing what they can to quickly scale their operations to meet demand. But they need donations – they need cash – to do so now.

Feeding America is a great way to help in difficult times.

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Video Dispatch I: Future Crises in the Making

Mountain living can be…challenging. In the first of a series of video dispatches this week, I make lemons from lemonade and discuss the looming international challenges facing the American presidency, no matter who wins in November (and likely, beyond).


If you enjoy our free newsletters, the team at Zeihan on Geopolitics asks you to consider donating to Feeding America.

The economic lockdowns in the wake of COVID-19 left many without jobs and additional tens of millions of people, including children, without reliable food. Feeding America works with food manufacturers and suppliers to provide meals for those in need and provides direct support to America’s food banks.

Food pantries are facing declining donations from grocery stores with stretched supply chains. At the same time, they are doing what they can to quickly scale their operations to meet demand. But they need donations – they need cash – to do so now.

Feeding America is a great way to help in difficult times.

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The 2020 Elections and Beyond

I normally try to stay out of American politics. My work is in the wider world, the American system is remarkably stable and self-regulating, and if I’m to be completely honest, making domestic political forecasts tends to burn bridges no matter how even-handed I attempt to be. Case in point: many responses to my most recent newsletter on the American political system deepened my appreciation for creative expletives. And yet the 2020 general elections are only a few weeks away and their results are among the most hotly anticipated geopolitical events in years. It would be weird for me to not say anything.

Before proceeding, let me dispose of my personal politics. No one who espouses my particular mix of views on economic and social and global issues is on the ballot (and they weren’t last time, or the time before, or the time before that) so this newsletter isn’t so much an assessment of political positions with an endorsement or condemnation, but instead an explainer of where things stand along with a forecast for how both the elections and their aftermath will shake out.

Let’s begin with the incumbent:

In terms of international relations, perhaps Trump’s greatest presidential failing is his preference for personal deal-making as opposed to institutional diplomacy. What made Trump a successful real estate and branding magnate was his willingness and ability to shift responsibility – financial, legal or otherwise – around among different parties as part of his brokering.

In business, Trump’s method worked because the United States has a robust civil society, rule of law and multiple levels of government with investigatory and enforcement power. In essence, in his business negotiations Trump maneuvers the folks on the other side of the table into positions where state and the society do much of his work – and nearly all his enforcement – for him.

But the world is not the United States. There is no global, multi-layered, professionalized, largely-apolitical cadre of institutions to enforce agreements among countries. What few global institutions do exist share three fatal flaws:

First, such structures only have enforcement mechanisms should member countries choose to allow them enforcement mechanisms, often on a case-by-case basis. For example, the International Court of Justice’s rulings are technically binding, but any country can choose to withdraw enforcement power selectively or wholesale at any time for any reason. There aren’t many rules to rely upon. Only unenforceable norms.

Second, pretty much all global institutions were American-crafted as part of America’s anti-Soviet Cold War efforts. They only work if the US forces them to work, and between the gradual disengagement of Presidents Bill Clinton and George W Bush, and faster disengagement of Barack Obama and Donald Trump, they simply no longer function.

Third, in global affairs, the people on the other side of the table – Russia’s Putin and China’s Xi come to mind – have a lot more experience in breaking norms to their advantage. Both to a degree built their systems around such tactics. No wonder Trump often appears outmaneuvered.

Yet even bilateral deals where such squishiness is less common tend to be weak. It too is an institutional issue, although in bilateral agreements it has more to do with tasking and executive leadership. For example, in the final decade of the Cold War, Ronald Reagan negotiated a series of “trust but verify” nuclear disarmament deals with the Soviets. After the deals were signed Reagan didn’t simply leave to watch the Sound of Music, his administration worked out the monitoring details with the Defense Department, the State Department, the CIA, and the Arms Control and Disarmament Agency. Enforcement did not magically happen. TeamReagan had to make it happen, and that required engaging not simply the Soviets, but multiple pieces of the American executive branch as well.

Trump simply ignores such empowering minutiae. After announcing his big deals, he moves on to something else and rarely looks back. That’s a big part of why his pacts with North Korea fizzled within months or why the Phase One deal with China was dead on arrival (in China). About the only exceptions have been TeamTrump’s trade deals, but here institutional involvement not only helped make the deals happen, but helped make them stick. The same institution responsible for negotiating the successful trade deals with South Korea, Japan, Mexico and Canada – the Office of the U.S. Trade Representative – is also responsible for enforcing the deals.

From my point of view, the Trump administration has been a missed opportunity.

Nearly everything about the American strategic position – from military procurement to diplomatic positioning – is a hangover from the Cold War: The prime operating principle guiding America has been that the United States will create a safe, globalized world that empowers weak countries and fosters global trade for all, and in exchange Washington gets to direct everyone’s security policies in order to better combat Moscow. The security-policy aspect stopped working when the Soviet Union collapsed, but the Americans never changed the script on globalization and kept holding up the world’s collective ceiling. American foreign policy became ossified and rudderless.

Trump, as a geopolitical neophyte unburdened by commitments made in the previous century, had the opportunity to come up with something new. He certainly proved eager to sledgehammer previous structures and relationships, but he – like his three immediate predecessors – failed to generate a replacement.

“America First” isn’t a policy, much less a strategy. It’s a motto. It’s just like Obama’s “don’t do stupid stuff”. And so I put Trump into the same basket as Obama: leaders who left the country worse than they found it. And that’s before considering Trump’s preference for playing fast and loose with ethics or institutions.

Now, the challenger:

Biden’s first problem is that he is a black box from a policy point of view. Biden is commensurate political chameleon. His position shifts on every issue based on what he perceives the majority of power brokers within the Democrat Party currently believe. That has put him on both sides of nearly every issue of importance during his long tenure in politics. Such flexibility is particularly problematic on topics where consistency is key, such as national security and trade issues. Such an unfettered lack of convictions is part of what led former Defense Secretary Robert Gates to note that Biden has been on the wrong side of every foreign policy and strategic issue of the past four decades.

Biden’s second issue is his utter lack of leadership experience, which I realize sounds odd considering he has served in Washington since 1973. But aside from two years as a legal clerk and lawyer, he had only been a senator before becoming VP. To be blunt, senators suck at being president. They have little concept of how to manage an organization – such as the federal government with its three million employees.

Nor did Biden’s tenure as Barack Obama’s vice president provide him with many leadership opportunities. This is most definitely not Biden’s fault. Obama was famous for hermetically sealing himself in the White House and only allowing in information that supported his penchant for non-action, and his near-pathological unwillingness to have conversations with…well, anyone. But Obama refused to let policy be made without him, leaving Biden with little to do for eight long years.

(Incidentally, similar issues constrained a far more straightforward and ambitious member of the Obama administration: Secretary of State Hillary Clinton. Part of why Ms Clinton resigned at the end of Obama’s first term is that Obama melon-balled out of the State Department control of diplomatic relations with the world’s most important countries, transferring their management to the West Wing where…nothing happened.)

The most positive thing I have to say about Biden’s expertise is the odd combination of his lack of convictions combined with having a boss who didn’t like to interact with others meant that whenever the Obama White House needed a mediator in Congress, Biden was the obvious choice. That’s great. That’s essential. I don’t think I’d call that leadership.

But I think, for me personally at least, the issue of mental competence is Biden’s biggest looming issue. Being gaffe-prone doesn’t bother me, especially when a gaffe-prone person owns it as Biden historically did in the Senate. I find it humanizing. Even credibility-building. I’m instead talking about something more concerning: I’ve lost track of the number of times of late that Biden has stumbled over his words or looked confused, even when reading pre-prepared remarks from a teleprompter. I had the opportunity to meet Biden shortly after the Obama administration ended and my first thought was “Wow. He might…he might have dementia. It’s a good thing he didn’t run for president.”

Yet here we are. I want my president to be able to handle a crisis. And foreign leaders. And the press corps. And a phone call. Due to his disposition, Trump has repeatedly demonstrated he cannot do these things well. Biden’s recent track record suggests something potentially even worse.

Despite Biden’s lack of consistency or experience and concerns for his mental capacity, many hopeful for (or resigned to) a Biden administration believe this can still work out. They say that, sure, Biden might be a keg short of a six pack, but so long as he has a strong cabinet everything will be fine. I’ve heard this argument before. Recently. It is what old-school Republicans hoped about Trump back in 2016. It didn’t work out very well. At the end of the day, the president has the power and you need to trust the person in that position, not his unelected handlers.

So we’re left to choose between two seventy-something men who feature different flavors of incompetence. I have no idea who I am going to vote for.

But I’m still, well, me. So I will make a prediction:

President Trump’s seemingly deliberate and always callous mismanagement of the coronavirus crisis has contributed to the death of 200,000 Americans. In per capita terms that’s double the suffering of Europe or Canada. In absolute terms that’s higher than the number killed in any American military conflict save the Civil War and World War II itself. Forget vaccines. Forget ventilators and masks. Forget the CDC and the WHO. Forget the PR war with the Democrats. All Trump needed to do to mitigate the risk was say something like “wear a mask, maintain some distance, and look in on your loved ones”. Paraguay managed it. Bulgaria managed it. This isn’t hard. Most of America’s political middle finds Trump leadership lacking and his behavior disgusting.

Trump also faces danger on the Right. Trump has alienated fiscal conservatives, the military and the business community – all once bedrock Republicans. The Democrats have avoided – albeit narrowly – running an absolute whackjob and instead settled on Milquetoast Biden. To achieve reelection, Trump must capture every swing state as well as a couple decent sized blue states. That’s just not possible. Trump surprised last time because there was a large block of voters – the populists – the pollsters missed. That’s not the case this time around. And so Trump will lose and he will lose big.

Assuming, that is, Biden can prove he still has some marbles.

Biden has been the most closely managed candidate in modern American political history. He has not been without his ring of protectors for two years, giving him the feel of a badly operated marionette. Americans need to know if he can function, and we will all find out together on Sept 29.

Next Tuesday will be the first presidential debate, moderated by Chris Wallace. It will be the first time Biden will need to hold his own in a long-form open forum without his support crew. His performance will determine the election. Biden does not need to best Trump in the debate. All he needs to do is come across as marginally capable.

If Biden can do that, concerns for his mental capacity will ebb and he will win handily.

If the Biden who served in the Senate for three decades shows up – a likeable, master debater who can identify with people with a glance and laugh at his own missteps – he will win in a landslide.

But if Biden just…can’t, then Trump walks away with it all.

It really is that simple.

Now I’m sure that many of you are either cheering my wisdom or burning me in effigy (maybe both for some of you), so let me now say something certain to piss everyone off at once:

As regards global affairs, who wins November 3 really doesn’t matter.

Yes, the U.S. President is the single-most powerful person in the world, but ultimately the United States is fundamentally incapable of moving forward on the world stage.
 
Another four years of Donald Trump would grant us the clarity of a known quantity: continued degradation of the structures of the international system. But that system has been degrading since 1992 so I don’t see this as more than a few additional steps down the same road towards a sort of retrenchment / neo-isolationism. That’s ultimately where I saw the United States heading back when I wrote the Accidental Superpower back in 2014.
 
A Biden administration would be little different except in tone. Resetting American foreign policy in any meaningful way first requires a replacement for the Cold War structures which are now three decades out of date. No one on TeamBiden has so much as blinked in that direction. Nor do I believe for a moment that a President Biden would prioritize such an effort. Ultimately, such a task would require a clear, firm national goal. That would require something Biden simply lacks. Convictions.
 
A grand reset would also require the service of an American institution which no longer functions: the State Department. The past four administrations have alternatively neglected or gutted America’s diplomatic corps. It is largely incapable of being part of any solution without first undergoing a decade-long regeneration.
 
A grand reset would also require an American institution which is likely to be hostile to a Biden administration: the Senate. The Founding Fathers designed the Senate to act as a brake to prevent policy from evolving too quickly. One-third of the Senate faces election races every two years, so full turnover is sooooo sloooow. The Senate regularly reflects American politics as it exists…a decade in the past. In addition, each state gets the same two senators regardless of population – a measure designed to prevent larger states from trampling smaller states. That means more rural, lower-population states are more heavily represented. More rural, lower-population areas tend to prefer Trump over Biden.
 
For Biden to have a working majority in the Senate he needs to flip at least four seats. It is possible of course, but highly unlikely. (Recall that when the 2018 midterms delivered Trump a sound thumping at the national, state and local levels, Trump-aligned Republicans gained seats in the Senate.) The point of this constitutional detour is that the Senate is the institution that ratifies treaties, a classification that includes all the various agreements that underlay America’s Order-era structures: NATO, NAFTA, the United Nations, the WTO, the Japanese alliance, the International Monetary Fund, and so on.
 
A grand reset would also require time, which would also be in short supply. A President Biden would spend the first six months dealing with coronavirus and a series of legal reforms that address issues of accountability designed to Trump-proof future elections. Add in little things like summer breaks and in the most aggressive case scenario a President Biden couldn’t even begin any sort of new global effort until 2022. And don’t forget that the domestic issues Biden wants to prioritize also require the Senate. In the highly likely outcome that Biden’s domestic hopes are dashed on the Senate’s shoals, anything global is likely to be pushed not so much to the back seat, but to be abandoned on the side of the road.
 
For a good time, you too can play with electoral and Senatorial politics at https://www.270towin.com/.


If you enjoy our free newsletters, the team at Zeihan on Geopolitics asks you to consider donating to Feeding America.

The economic lockdowns in the wake of COVID-19 left many without jobs and additional tens of millions of people, including children, without reliable food. Feeding America works with food manufacturers and suppliers to provide meals for those in need and provides direct support to America’s food banks.

Food pantries are facing declining donations from grocery stores with stretched supply chains. At the same time, they are doing what they can to quickly scale their operations to meet demand. But they need donations – they need cash – to do so now.

Feeding America is a great way to help in difficult times.

The team at Zeihan on Geopolitics thanks you and hopes you continue to enjoy our work.

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COVID-19: The Breath Before the Plunge

You can also read the State of the Pandemic series’ take on the United StatesLatin America, the Persian GulfEast AsiaEurope, and the BRICS

The United States is in for a rough summer.

Unlike most countries in East Asia or Europe, the United States never managed to get its caseload under control. Between the economic re-openings, Memorial Day parties, and ongoing protests against police violence, cases are rapidly ticking up. On June 24th, the U.S detected 38,672 new cases – that is not only double the low of June 8th-9th, it is already more than the United States’ original peak of new cases registered 10 weeks ago.

If it doesn’t feel like there’s an imminent crisis, that’s because back in March and April, the majority of American COVID cases were concentrated in the New York City metro. It wasn’t ridiculous for many Americans to question whether or not the virus was their problem. Not ridiculous, although certainly myopic.

Those days are gone. Today, America’s new COVID wave is truly nationwide.

Fresh – record – outbreaks exist in half the states. While the New York City area has made great strides in lowering case numbers, those gains have become overwhelmed in the national numbers by exploding epidemics in California, Texas, and Florida – three of America’s four largest states by population. Heavily rural states like Montana, Kansas, Oklahoma, Wyoming, Idaho, Oregon, Iowa, and Utah are hitting record high infection levels. Arizona now leads the nation in positive cases on a per capita basis. Within a week, it is likely to surpass even New York City’s peak infection rates, making Phoenix a necessary candidate for a severe lockdown. The American South – the most infected region overall – appears to be no more than three weeks behind Arizona. So much for heat or humidity impeding the virus.

It is worth recalling how the virus progresses. From the point of a mass exposure event (i.e., Spring Break or Mardi Gras), it is typically three to five weeks before the virus spreads sufficiently to show up in the data. At the time of this writing, Memorial Day happened three and a half weeks ago, while mass re-openings around the country average to approximately five weeks ago. From that point, it is another two to four weeks before hospital admissions explode, and then an additional two to three weeks before hospitals start reporting deaths. If this pattern holds true, many hospitals will be pushed to their limits by July, and August will be a very rough period. 

There are some (faint) silver linings. When New Yorkers grappled with the first epidemic, there were no best practices or treatments or warnings. We now know that putting everyone on a ventilator is not the best plan. We have at least one drug treatment program for COVID (Remdesivir) that shows some effectiveness. And most of all, this time, we are certain that a massive epidemic is coming nationwide.

For a country as large and diverse as the United States, making broad projections is always squishy, but there are some pretty clear outcomes here:

The infection levels and timing of the new wave suggests that the fall school semester is a no-go. It suggests what re-openings we’ve seen in travel and restaurants will reverse. It suggests the next flu season, which generally begins in October, will be the worst one on record as COVID and the flu strike simultaneously. It suggests the presidential election season will be…fraught. And it certainly suggests that Americans are stuck with COVID until there’s a vaccine.

Our advice today remains similar as it was at this crisis’ beginning: Wash your hands (with soap). Get the new flu vaccine when it comes out (in September). Limit your outings (skip the bars). Wear masks when you so venture (replace or clean them often). Stay six feet apart (don’t be a dumbass). And if you catch the virus, stay home and try to limit your household’s exposure.


The team at Zeihan on Geopolitics hosts regular webinars on the state of the world and industries from energy to agriculture to manufacturing and beyond.

Our next webinar, scheduled for June 29th, will be on China.

Scheduling and sign-up information can be found here.


If you enjoy our free newsletters, the team at Zeihan on Geopolitics asks you to consider donating to Feeding America.

The economic lockdowns in the wake of COVID-19 left many without jobs and additional tens of millions of people, including children, without reliable food. Feeding America works with food manufacturers and suppliers to provide meals for those in need and provides direct support to America’s food banks.

Food pantries are facing declining donations from grocery stores with stretched supply chains. At the same time, they are doing what they can to quickly scale their operations to meet demand. But they need donations – they need cash – to do so now.

Feeding America is a great way to help in difficult times.

The team at Zeihan on Geopolitics thanks you and hopes you continue to enjoy our work.

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The State of the Pandemic: The United States

This is the second in a series of newsletters addressing the state of the COVID-19 pandemic around the world. Other articles in the series cover Latin America, the Persian GulfEast AsiaEurope, and the BRICS

Let me bottom-line it: In the United States, the COVID epidemic is now the second-worst in the developed world and among the dozen worst globally. The epidemic will get considerably more intense in just the next few weeks. Red states and Blue states will experience almost identical epidemics. The situation will not noticeably improve until such time as we have a widely distributed vaccine program.
 
Now for the longer version:
 
In a country as geographically and demographically large as the United States, it should come as no surprise America’s coronavirus epidemic wasn’t the same everywhere. Functionally, the United States has experienced two epidemics.
 
The first was in the Northeast Corridor, America’s most densely populated footprint stretching from Washington DC in the south to Boston in the north. The epidemic hit hardest in the greater New York City region (aka the tri-state region). NYC is the United States’ densest population center, the region with the best inter- and intra-city transport infrastructure, as well as its heaviest international travel and transit locations – all factors which encouraged rampant COVID spread.
 
America’s second epidemic was…everywhere else. Outside of the Northeast Corridor, American cities are far apart and not well connected with transport infrastructure. When travelling around the country, most Americans use personal cars or passenger jets. When COVID started, airline use dropped by over 95% year-on-year and people largely stopped intra-city travel. As such the virus still spread, but at a slow smolder rather than a hot burn.
 
The difference explains much of the divergence among Americans as to how they view the virus. The Northeast Corridor got hit hard, and that heavily-urbanized corridor is among America’s most politically liberal regions. So the “Left” takes the virus pretty seriously.
 
In contrast, most of America’s wide-open spaces and smaller cities lean more politically conservative, with the less populous parts of the country tending in a decidedly populist direction. So many on the “Right” – and especially the populist right – wonder what’s the big deal?
 
(This is of course a generalization. There are spots of deep-Red rural Alabama the virus has absolutely devastated, while there are some urban centers – even in the Northeast – which have done pretty well. But overall, the generalization holds.)
 
Anywho, while policy responses are all over the map, America’s political split as regards COVID perceptions is not ideological. To a large degree, America’s Left and Right have experienced different epidemics. It is perfectly natural that their perceptions reflect that. Yet moving forward, we expect those perceptions to align.
 
America’s lockdowns were not nearly as all-inclusive as the rest of the world’s. In China, government-mandated fever-checkers were omnipresent; If you had a fever you were ripped away from your family until such time as you tested negative for the coronavirus — even if that took over a month. In contrast, consider Denver where I live: marijuana dispensaries were branded “essential businesses”. Pretty much all epidemiologists were very, very vocal about how if the goal was COVID eradication, we had to implement the lockdowns and build capacity to contain the outbreaks correctly the first time.
 
We didn’t.
 
The result? Outside of the Northeast Corridor, the United States never saw its caseloads drop. In most places a lengthy plateau was as good as it got. Only in the Northeast Corridor where America experienced its major outbreak – and so where quarantine procedures were taken more seriously – did cases decline substantially. Statistically speaking, the rapid caseload drops in the Northeast Corridor broadly cancelled out the slow-but-steady increases in the rest of the country. As a whole, America experienced a caseload plateau.
 
Now, in mid-June, the United States has reached an equalization point: caseloads per unit of population in the Corridor (which have been dropping) now roughly match the case levels in the rest of the country (which have been rising). With the exception of the very lightly populated states of the Rockies, the states now have very similar caseloads as a percentage of the population – regardless of their political leanings.

(Many, many thanks to the Financial Times for providing the data interface that makes this graphic possible. You can visualize your own data pulls here.)

Moving forward, both groups of states are about to experience similar caseload increases, largely due to an unrelated pair of epidemiological disasters.

The first such epidemiological disaster was Memorial Day. After the country was cooped up for two months, people wanted out, and the three-day Memorial Day weekend enabled folks to cut loose. Mass parties was the unsurprising result. (Maybe we all should have seen this coming?) The biggest parties with the least social distancing occurred in those states where caseloads weren’t huge – primarily in America’s politically conservative regions. Missourians were particularly aggressive at drowning their frustrations in drinks.

The second epidemiological disaster is the ongoing series of protests against police brutality and racial inequality. Regardless of what one thinks of the righteousness or lack thereof of the Black Lives Matter movement in general or the individual protestors in specific, the simple fact remains that large groups of people in limited spaces are excellent for the transmission of a respiratory virus. And that’s before considering issues like mass arrests that cram people into paddy wagons and jail cells, much less the use of tear gas and pepper spray which makes people cough and gasp and therefore be more likely to expel and inhale viruses. The larger, denser protests have been in America’s major cities, most of which tilt decidedly Left.

Take a look at this excellent graphic from Count Love. They’ve collected thousands of local media reports and made this map highlighting the major protest sites. Anywhere there’s a circle – especially a larger circle – we should except to see surges in coronavirus cases.

That just leaves two questions: how soon will we see the surges, and how big will they be?
 
We know from case studies around the country and around the world that from the point in time of mass spreading events, we can expect to see significant surges in caseloads in three to five weeks. Memorial Day was May 25. The protests have occupied the first two weeks of June. We should expect to detect mass outbreaks across the country in both Red and Blue states in late-June and especially in July.
 
As to size, consider the case of Austin, Texas – home of our headquarters. Just two weeks after Memorial Day, Austin has already seen caseloads double. That’s before the protests have had a chance to add their own fuel to the fire.
 
America’s quarantine efforts were insufficient to root out coronavirus, likely making it endemic to the population. That was before the Memorial Day parties and protest movements. Purging the virus is now not only an impossibility, the United States is now on track to experience the worst documented infection rates in the world (many countries have worse testing regimes, so labeling the US #1 without a caveat is a bit disingenuous). About the only silver lining is that vaccine development efforts continue to outperform. We are highly likely to have a functional vaccine this year. That still leaves questions of mass manufacturing and distribution, but even in the worst-case scenario, that process will likely require under a year.
 
In the meantime, regardless of differences in race and socioeconomic status and ideology and geography, Americans are about to find themselves in the same boat. It isn’t the sort of unifying experience we at ZoG tend to hope for, but it is a unifying experience nonetheless.
 
The United States is hardly the only place that has gotten its COVID response wrong. Mexico — the United States’ top economic, cultural, political and security partner — unfortunately falls into the same bucket. That’s part of why our next video conference — this coming Tuesday, June 16 – will address all things Mexican, from the status of the drug war to the coronavirus impact to American-Mexican relations. Scheduling and sign up information can be found here.

REGISTER FOR THE WEBINAR


Newsletters from Zeihan on Geopolitics have always been and always will be free of charge. However, if you enjoy them or find them useful, please consider showing your appreciation via a donation to Feeding America. One of the biggest problems the United States faces at present is food dislocation: pre-COVID, nearly 40% of all foods were not consumed at home. Instead they were destined for places like restaurants and college dorms. Shifting the supply chain to grocery stores takes time and money, but people need food now. Some 23 million students used to be on school lunches, for example. That servicing has evaporated. Feeding America helps bridge the gap between America’s food supply (which remains robust) and its demand (which coronavirus has shifted faster than the supply chains can keep up).
 
A little goes a very long way. For a single dollar, FA can feed one person for three days.

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Distancing at Work

Coronavirus is primarily a respiratory ailment primarily spread by exhaled droplets from coughs or simple breathing, which is why masks are so effective at preventing an infected individual from spreading it.
 
This obviously presents a few problems. Most people are completely asymptomatic for the first five days they harbor the virus. Any effort at an economic reopening must limit asymptomatic spreading, and the best way to do that is to maintain distance between individuals.
 
Which brings us to the graphic. It breaks down the American work force by distance. Any profession close to the top is one in which distancing at work is flat-out impossible. As one moves down the list, distancing becomes more and more built into the normal workflow.

The categories are fairly straightforward.

Green indicates medical service professionals. Obviously they have no choice but to be proximate to patients.

Orange are the folks who keep the food system flowing, which is about as essential as a worker can get. Not included are retail operations like bars and restaurants. Do we like them? Yes. But essential workers they are not.

Blue is where things get tricky. Not everyone who works in construction and infrastructure and power and transport may be “essential,” but there is no way the economy can get back to anything approaching normal without them. Without all of them. Moving forward, this group will become every bit as important as medical staff and food workers.

There are many pearls and ah-has in this information. (By the way, thanks to the folks at O*NET for maintaining the database! You can see the entire American workforce broken down by distancing needs here.) One of our chief takeaways is how traditional manufacturing jobs are not high up on the list. With very few exceptions (millwrights come to mind) most of those jobs are coded in the 60s and (well) below. That hardly means manufacturing workers are immune to COVID, but it does indicate that maintaining a degree of distancing is at least possible in a way that it just isn’t in a meatpacking plant or a hospital.

Which brings me to our upcoming video-conference series.

On June 3 Melissa Taylor and Peter Zeihan will be hosting a video-conference on Manufacturing in a New Era. We’ll address the future of automotive, automation, reshoring, COVID’s shattering of supply chains, consumption shifts, as well as get you an update on the deepening trade war.

For those of you who don’t want to pop for the fee, we’ve recently completed a video on our projected shape of the COVID epidemic to come. You can watch it for free here.

Our June 3 manufacturing video-conference is only the first of a series which will include events focusing on Mexico, China, Energy and Agriculture. Scheduling and sign up information can be found here.



Newsletters from Zeihan on Geopolitics have always been and always will be free of charge. However, if you enjoy them or find them useful, please consider showing your appreciation via a donation to Feeding America. One of the biggest problems the United States faces at present is food dislocation: pre-COVID, nearly 40% of all foods were not consumed at home. Instead they were destined for places like restaurants and college dorms. Shifting the supply chain to grocery stores takes time and money, but people need food now. Some 23 million students used to be on school lunches, for example. That servicing has evaporated. Feeding America helps bridge the gap between America’s food supply (which remains robust) and its demand (which coronavirus has shifted faster than the supply chains can keep up).
 
A little goes a very long way. For a single dollar, FA can feed one person for three days.

DONATE TO FEEDING AMERICA

A Failure of Leadership, Part I: A Look Around the World

Read Part 2 and Part 3

The past few weeks have been…eventful. I make my living anticipating and explaining and projecting change, with an unfortunate emphasis on destabilizing and disintegrative change. Pre-coronavirus the world was already hurtling through its most rapid breakdown in living memory; Coronavirus has accelerated…everything.
 
Times of extreme change are often painful, but for many they provide opportunity. Leaders often shine during times of extreme change. History tends to remember people who help their people and institutions navigate periods of disruption. Reagan’s speech at the Berlin Wall ended the Cold War. Yeltsin standing on a tank, defying the military put a bullet in the Soviet brain. Meir launching a worldwide assassination program made tiny Israel a global power. Churchill pledging to never surrender set the stage for the Nazi defeat. Ataturk defying Europe’s post-WWI carve-up plans ensured that, eventually, the Turks would return as a major power. In moments like these, a few countries pull away from the pack and reinvent themselves.
 
I haven’t seen any of that so far in the coronavirus crisis. Anywhere. Honestly, it is a little disappointing that no world leaders are rising to the challenge. While some leaders have dealt with the crisis competently, I haven’t seen any effort by any leader to harness the crisis to put their country on a more solid footing or to prepare for the post-COVID future. The lack of global leadership effort is simply mindboggling.
 
Let’s run through the list:
 
Emmanuel Macron has hitched his star to the idea that EU countries with solid budgets (that is, the countries less spendthrift than France) should shell out more money to help the poorer countries (that is, countries like France) get by. That certainly generates him some gravitas in Rome and Lisbon, but personifying the concept of asking for a hand-out isn’t what leadership looks like.
 
Germany’s Angela Merkel was supposed to be retired by now. Her chosen successor stepped back in early February, just before we all became obsessed with coronavirus. With her retirement plan in tatters, the Indispensable European is now once more unto the breach, dealing with intractable issues in her quiet, competent way. Unfortunately, she is constrained by her country’s savings-obsessed culture. No one in Germany wants to bail out Europe’s weaker members, particularly since Germany’s forward-looking, keep-your-powder-dry medical and financial approach has (so far) proven successful while Southern Europe’s spend-it-even-if-you-haven’t-got-it mindset has not. Honestly, Merkel looks like she’s just tired of it all. feel exhausted just reading about her. (And frankly, she should be tired. She’s been shoveling Europe’s shit for over a decade.)
 
Even if everyone loved Brexit and how Prime Minister Boris Johnson has handled it, Johnson just now emerged from some quality time in a freaking COVID ward (just in time to bring his new baby home). The UK in general – and Johnson in particular – is in no shape to lead much of anything.

The orders to tamp down any discussion of coronavirus in Japan in order to maximize the chance of the 2020 Summer Olympics being derailed undoubtedly came from the top, making Prime Minister Shinzo Abe directly culpable in a spreading epidemic in the world’s oldest national demographic. Needless to say, few are looking to Tokyo for a how-to guide.
 
Canada’s Justin Trudeau has the look of a man who has been completely overtaken by events…because he has been. That’s less a judgment of his leadership or his team’s management skills, and more the crystallizing realization in Canada that there is no future for Canada unless it does everything of substance hand-in-glove with the United States. That includes trade policy and energy policy and China policy and…anti-COVID efforts. Trudeau has been (repeatedly) blindsided by whatever fresh spasms of oddity have erupted from the White House, and he simply has no option but to make the best of it. Pragmatic? Yes. Necessary? Certainly. But the liberal flame has most certainly gutted out.
 
Russia’s Vladimir Putin proudly proclaimed Russia had COVID “under control” just ten days before the Moscow mayor launched a lock down. There’s been broad spectrum public criticism by health care workers of the Russian government’s (mis)management of the epidemic, that has progressed to several doctors committing suicide by jumping out of buildings (a favorite technique of the Russian security services for disposing of troublesome personalities). This would be bad enough at any time, but Russia’s educational system collapse in the 1990s means Russia doesn’t have a particularly deep bench of health care staffers. COVID combined with the government’s response to the bad PR coming out of the health care sector is gutting what’s left of an already woefully inadequate health care infrastructure. Needless to say, while many countries want to manage the message, no one else is liquidating their precious health care workers to do so. (And incidentally, the Russian bot farms are hard at work spreading bat-shit crazy COVID-related conspiracy theories so please quit getting your COVID news from Facebook.)
 
Not to be left out, most of the world’s secondary powers have slightly wacky nationalist leaders who are proving…wackier with every passing day.
 
India’s Modi is working diligently to disenfranchise a large portion of his own population, and seems genuinely surprised when there is (violent) push back.
Turkey’s Erdogan is gayly skipping his way down a neofascist path, setting the stage for (another) harsh, ethnic-based, wipe-out of a conflict with the Arabs to the south, the Europeans to the northwest, and the Russians to the northeast.
Brazil’s Bolsonaro seems committed to ensuring the epidemic hits his country as hard as possible, in part by personally leading press-the-flesh rallies against COVID-containment and mitigation efforts.
Mexico’s Andres Manuel Lopez Obrador is nearly as obtuse on the topic of the virus as Bolsonaro. Moreover, he has decided against providing much of any support to Mexican firms during the crisis, ensuring that Mexico’s recession will be longer and more difficult than it needed to be.
 
The number of leaders who have risen to the occasion is vanishingly small. Korea’s Moon Jae-in and Taiwan’s Tsai Ing-wen have done a phenomenal job of managing the COVID epidemic, but much of the credit must go to those countries’ intelligence and diplomatic corps who are arguably the most attuned to regional disruptions. After all, for them threat detection/assessment is a matter of day-to-day survival, and their hawklike watching of China is what provided their countries’ health services with the advance warning the situation necessitated.
 
Honestly, the only leader who has truly outperformed is Prime Minister Jacinda Ardern of New Zealand. But while Ms Ardern continues to impress, her country’s geographic isolation grants the Kiwis virus containment/limitation options denied the rest of humanity. There are a few lessons there for others, but only a few. Yet even with these three bright spots, no one outside of their respective countries is looking to Moon or Tsai or Ardern for leadership.
 
That holds true pretty much everywhere. With the possible exception of Angela Merkel, not many people have looked to any of these leaders to be authorities on regional issues, much less global ones…ever. Part and parcel of true global leadership is that there can really only be one. Since the Americans for the past 70 years have provided the security architecture and economic capacity for a global system to exist, it has fallen to the man in the White House to design the response, set the course, provide the resources and, to be blunt, lead. That’s triply true in the case of the meaningful international institutions which provide the sinew of global cooperation.

Those days are over.
 
Since his election, Donald Trump has functionally ended NATO, eliminating the single greatest security alliance in human history. Last year the Trump administration functionally destroyed the World Trade Organization, the only institution capable of empowering the multilateral trading system. Last month the Trump administration ended American funding for the World Health Organization. A flawed institution? Sure. But to abandon it during a pandemic was, in a word, questionable. The American alliance with South Korea – long one of America’s three most loyal allies – is likely to end this year at Trump’s behest. TeamTrump is even drawing up plans to pull intelligence assets out of the United Kingdom, America’s oldest, closest, and most capable ally, in protest over the Kingdom’s Huawei-linked telecoms policy.
 
It doesn’t really matter whether you think Trump’s actions are warranted or otherwise. The point is that the United States de facto controlled these institutions and alliances. By leaving or killing them while simultaneously failing to establish domestically-run alternatives, Trump has vastly reduced the ability of the United States to manipulate the world. That isn’t leadership. That is abdication.
 
Nor is it purely an international question. Domestically, Trump is a standout in that the longer he is in the White House, the less competent he appears to be at using the tools of domestic power.
 
I’m not talking here about Trump’s politics, policies, or even personality, but about his gob-smacking lack of managerial skills. Nearly three and a half years into his term, there are still hundreds of positions throughout the federal bureaucracy which remain unfilled, a disturbing number of which deal with issues of health. Headless bureaucracies are broadly useless except to carry out the last orders that they were given. It is with more than a touch of irony that I must note that despite all sound and fury to the contrary, Trump’s pathological unwillingness to engage with the federal bureaucracies has actually entrenched Obama’s regulatory disfunction rather than excised it.
 
Nor has much of what Trump has done trimmed those bureaucracies down to size. After all, reducing staff and mandates and budgetary outlays takes active leadership, and Trump is one singularly disinterested and disengaged leader. Since Trump hasn’t disbanded the agencies or programs, America has been landed with all the expenses of a sprawling bureaucracy, but few of the benefits.
 
Add in daily COVID briefings in which Trump seems pathologically committed to showcasing his furiously deliberate lack of knowledge, and Trump’s levels of respect at home and abroad are at the lowest of his presidency – and trending very firmly down. Imagine how weak he will look in a few months (weeks?) when the United States experiences its second coronavirus wave.
 
Absent from this list of not-necessarily-failed-but-certainly-not-successful leaders is, of course, China’s Chairman Xi Jinping. Understanding just how disastrously Xi has mismanaged the coronavirus crisis and just how much permanent, irrevocable damage his “leadership” is causing China requires an entirely independent newsletter.
 
Stay tuned for Part II…


With the world under COVID-related lockdowns, I’m pretty much as home-bound as everyone else. That’s nudged me to launch video conferences for interested parties on topics ranging from food safety to energy markets to the nature of the epidemic in the developing world. While most of these events are for a set fee, my next video conference will be free of charge. Space, however, will be limited.
 
Join me May 19 for a once around the world of where we stand in the current crisis. Which countries are suffering most critically? Which are pulling ahead? What the shape of the pandemic will be in the weeks and months to come? What will the world look like once coronavirus is in our collective rear-view mirror? As with all the video conferences, attendees will have the opportunity to submit questions during the event.

REGISTER HERE


Newsletters from Zeihan on Geopolitics have always been and always will be free of charge. However, if you enjoy them or find them useful, please consider showing your appreciation via a donation to Feeding America. One of the biggest problems the United States faces at present is food dislocation: pre-COVID, nearly 40% of all foods were not consumed at home. Instead they were destined for places like restaurants and college dorms. Shifting the supply chain to grocery stores takes time and money, but people need food now. Some 23 million students used to be on school lunches, for example. That servicing has evaporated. Feeding America helps bridge the gap between America’s food supply (which remains robust) and its demand (which coronavirus has shifted faster than the supply chains can keep up).
 
A little goes a very long way. For a single dollar, FA can feed one person for three days.

DONATE TO FEEDING AMERICA

Global Grain Trade and its Discontents

Yesterday’s newsletter traced some of the issues that erupt when global transport gets wrecked. Today we’re going to cross that same initial problem into the world of agriculture.

It isn’t so much that plummeting oil demand globally hits agricultural production directly. If anything, cheaper oil translates not only into cheaper diesel fuel, but also key petrochemical outputs: things like pesticides and fertilizer are typically petroleum-derived. Instead, we’re going to have to hit this from another angle.

Take a look at this graph from Our World in Data:

Most of the world counts rice or wheat as their primary source of grain-based calories. So you’d think that either rice or wheat holds the top spot in international grain trade, right?

Wrong.

Corn is the winner of that particular contest by the proverbial country mile.

Most of you probably live in North America, and so probably don’t find this all that odd. Cornbread. Corn on the cob. Grits. Corn flakes. Tortillas. These are all part and parcel of our collective experience. In the rest of the world, however, once you get past polenta, corn isn’t used for much more than to line a bread pan. So why in the world is corn the top grain?
 
Check this out:

Most of the world’s corn isn’t eaten by people; but instead it is eaten by things people eat. Primarily cows, hogs and chickens.
 
One of the quirks of the American-led global Order that has dominated the world since World War II is that countries that normally couldn’t be physically secure or economically successful on their own suddenly could. For many that meant steadily increasing standards of living. That meant they wanted more and better food. Most people define more and better food as animal protein.
 
But while the Order radically changed the geostrategic environment, it didn’t touch the physical environment. If your climate and soil prevented you from growing a lot of of food before, you probably still couldn’t no matter what the Americans did or did not do. What you could do is build up an animal herd, and import the fodder to fatten it up. And so that’s what was done. Pretty much everywhere.
 
Enter coronavirus.

Global transport has crashed. The Americans used to use about half the corn they produced specifically to produce ethanol, a biofuel they mix into their gasoline. Since Americans are not driving, their need for ethanol has crashed right along with their need for gasoline. The United States is both the world’s largest producer and exporter of corn. American farmers are planting their crops right now, and so far they are planting just as much corn as before.

With US transport demand unlikely to recover this year, we’re looking at gross global corn oversupply with the expected downward pressure on corn prices. Globally, this is great. It implies little risk (at least on the supply side) to global meat production. Among major corn producers, in contrast, it suggests quite the glut. Corn farmers the world over – most notably in the United States, China, Argentina and Brazil – be warned.

Join Peter Zeihan and Melissa Taylor April 30th for an in-depth discussion and presentation on the impact of COVID-19 on global agricultural production and the stability of the world’s food supply.

REGISTER HERE

Future planned invents include:

  • Transport and Supply Chains
  • Manufacturing
  • Industrial Commodities

If you enjoy our newsletters, please consider showing your appreciation through a donation to Feeding America if you are able to do so. One of the biggest problems the country faces at present is food dislocation: pre-COVID, nearly 40% of all foods were not consumed at home. Instead they were destined for places like restaurants and college dorms. Shifting the supply chain to grocery stores takes time and money, but people need food now. Some 23 million students used to be on school lunches, for example. That servicing has evaporated. Feeding America helps bridge the gap between America’s food supply (which remains robust) and its demand (which coronavirus has shifted faster than the supply chains can keep up).
 
A little goes a very long way. For a single dollar, FA can feed one person for three days.

DONATE TO FEEDING AMERICA