Posts Tagged ‘Foreign policy/affairs’

The Daesh Matryoshka doll.

datePosted on 13:06, November 21st, 2015 by Pablo

Much ether and pulp have been expended analysing the Daesh phenomenon and its consequences. The range and acuity of interpretations is broad yet often shallow or incomplete. Since it is a rainy weekend on Auckland’s west coast, I figured that I would alternate playing with the toddler with compiling a brief on the multiple interlocked layers that is the war of Daesh.

I refer to the irregular warfare actor otherwise known as ISIS, ISIL or IS as Deash because the latter is a derogatory term in Arabic and denies the group its claim to legitimacy as a state or caliphate. Plus, Isis is a common Arabic female name so it is insulting to Arab women to use it.

Much like the famed Russian dolls, the conflicts involving Daesh can be seen as a series of embedded pieces or better yet, as a multilevel chess game, with each piece or level interactive with and superimposed on the other. Working from the core outwards, this is what the conflict involving Daesh is about:

First, it is a conflict about the heart and soul of Sunni Islam. Daesh is a Wahabist/Salafist movement that sees Sunni Arab petroligarchies, military nationalist regimes such as those of Saddam Hussein, Bashar al-Asaad and Muammar al-Qaddafi, nominally secular regimes like those in Algeria, Egypt, Turkey and Tunisia, and moderate monarchies such as those of Jordan and Morocco as all being degenerate and sold out to Western interests, thereby betraying their faith. The overthrow of these regimes and the prevention of anything moderate (read: non-theocratic) emerging as their political replacement are core objectives for Daesh.

Secondly, Daesh is at the front of a Sunni-Shiia conflict. In significant measure funded by the Arab petroligarchies who opportunistically yet myopically see it as a proxy in the geopolitical competition for regional dominance with Iran and its proxies (such as Hizbollah) and allies (like the Syrian and post-Saddam Iraqi regimes), Daesh has as its second main objective eliminating the Shiia apostates as much as possible. To that can be added removing all ethnic and religious minorities for the Middle East, starting with the Levant. Because Daesh is racist as well as fundamentalist in orientation, it wishes to purge non-Arabs from its domain even if it will use them as cannon fodder in Syria and Iraq and as decentralised autonomous terrorist cells in Europe and elsewhere.

Thirdly, Daesh is engaged in a territorial war of conquest in Iraq and Syria, where it seeks to geographically situate its caliphate. This has allowed it to gain control over important oil processing facilities in Iraq and Syria and use the proceeds from the black-market sale of oil (including to the Assad regime!) to help fund its recruitment and weapons procurement efforts.

Fourth, Daesh is the source of inspiration, encouragement and sometimes training of decentralised, independent and autonomous urban guerrilla cells in Europe and elsewhere that use terrorism as the tactic of choice. The strategy is a variant of Che Guevara’s “foco” theory of guerrilla warfare whereby cadres receive common training in a secure safe haven then return to their home countries in order to exploit their knowledge of the local terrain (cultural, socio-economic, political as well as physical) in order to better carry out terrorist attacks with high symbolic and psychological impact. In this variant Daesh uses social media to great effective to provide ideological guidance and practical instruction to would-be domestic jihadis, thereby obviating the need for all of them to gain combat experience in the Middle East.

Like Lenin and Guevara, Daesh understands that its terrorism will attract the mentally unbalanced and criminally minded seeking a cause to join. Along with disaffected, alienated and angry Muslim youth, these are the new Muslim lumpenproletarians that constitute the recruitment pool for the guerrilla wars it seeks to wage in the Western world. In places like Belgium, France and arguably even Australia, that recruitment pool runs deep.

Fifth, through these activities Daesh hopes to precipitate a clash of civilizations between Muslims and non-Muslims on a global scale.  It sees the current time much as fundamentalist Christians do, as an apocalyptic “end of days” moment. Its strategy is to fight a two-front war to that end, using the territorial war in the Middle East as a base for conventional and unconventional military operations while engaging in irregular war in Europe and elsewhere. The key of their military strategy is to lure Western powers into a broad fight on Muslim lands while getting them to overreact to terrorist attacks on their home soil by scapegoating the Muslim diaspora resident within them.

Daesh may be barbaric but its political and military leadership (made up mostly of Sunni Baathists from Iraq) is not stupid. It has not attacked Israel, knowing full well what the response will be from the Jewish state. In its eyes the confrontation with the Zionists must wait until the pieces of the end game are in place.

A critical component of Daesh’s strategy is the so-called “sucker ploy,” and it is being successful in implementing it. Basically, the sucker ploy is a tactic by which a weaker military actor commits highly symbolic atrocities in order to provoke over-reactions from militarily stronger actors that deepen the alienation from the stronger actor of core prospective constituencies of the weaker actor. That is exactly what has happened in places like the US, where opposition to the acceptance of Syrian refugees has become widespread in conservative political circles. It also is seen in the bans on refugees imposed by the Hungarian and Polish governments, and the clamour to halt refugee flows from conservative-nationalist sectors throughout Europe. We even see it in NZ on rightwing blogs and talkback radio, where the calls are to keep the Syrian refugees out even though no Syrian has ever done politically-motivated harm to a Kiwi (the projected intake is 750).

Sowing disproportionate fear, paranoia and the blind thirst for revenge amongst targeted populations is the bread and butter of the sucker ploy and by all indicators Daesh has done very well in doing so.

There is more to the picture but I shall leave things here and resume my asymmetric campaign versus the toddler.

One final thought. For the anti-Daesh coalition the fight must assume the form of a conventional war of territorial re-conquest in Syria and Iraq, run in parallel with a shadow urban counter-insurgency campaign in the West that is fought irregularly but which is treated judicially as a criminal matter, much like an anti Mafia campaign would be. Eliminating the territorial hold of Daesh in Syria and Iraq will remove their safe haven and training grounds as well as kill many of their fighters and leaders. That will help slow refugee flows and the recruitment of Westerners to the cause and facilitate the domestic counter-insurgency campaigns of Daesh-targeted states. The latter include better human intelligence gathering and intelligence sharing by and among erstwhile allies and adversaries in order to better counter dispersed terrorist plots.

Of course, the long-term solution to Daesh, al-Qaeda and other Islamicist groups is political reform in the Arab world and socio-economic reform in the Western world that respectively treat the root causes of  alienation and resentment within them.  So what is outlined in the previous paragraph is just a short-term solution.

In order for even that to happen, there has to be a tactical alliance between all actors with strategic stakes in the game: Russia, major Western powers, the Sunni Arab states and Turkey, the Syrian and Iraqi regimes, the Kurds, Iran and a host of irregular warfare actors including Hizbollah, the Free Syrian Army and assorted Islamicist groups not beholden to Daesh. It will be a hard coalition to cobble together, but the common threat posed by Daesh could just well force them to temporarily put aside their differences in favour of a workable compromise and military division of labour between them.

Of course, should that all occur and Daesh be defeated, then the old fashioned geopolitical chess game between Russia, the West, the Arabs, Kurds and Iranians can resume in Syria and Iraq. The conditions for that game depend on who emerges strongest from the anti-Daesh struggle.

Somewhere in the Kremlin Vladimir Putin is smiling.

Media Link: The Paris attacks in context.

datePosted on 15:33, November 17th, 2015 by Pablo

I have spent the better part of the last few days doing assorted media interviews about the Paris terrorist attacks.  Some were no more than sound bites, others were a bit more in depth. Here is a radio interview that allowed me to elaborate a bit on the broader picture behind the attacks.

Another dog and pony show.

datePosted on 16:37, October 8th, 2015 by Pablo

Prime Minister John Key did a whirlwind trip to Iraq to confer with its Prime Minister and President and visit the NZDF personnel stationed at Camp Taji, 25 kilometres north of Baghdad. The trip was supposedly secret yet he took an entourage of 40, including selected members of major NZ media outlets. He stayed overnight at Camp Taji in between duststorms, fog, and assorted other travel contretemps that lengthened the journey.

The coverage from the invited media was breathless and fawning. It was mostly about the travel delays. It was a mix of reporter’s lament and “hey I am here!”. Save the protocolar press releases, nothing, as in zero, was reported by the NZ media about John Key’s meetings with the Iraqi government, AKA the people that ostensibly have sovereign control over the land in which the NZDF operates at their formal request. That much was announced by the National government four months after NZ agreed to the military terms of its joining the anti-Daesh coalition.

What passed for reportage about the NZDF mission was basically regurgitated NZDF press releases extolling the virtues of the NZDF trainers, the difference that they made and the successes they were having in training Iraqi troops. PM Key was featured at length in audio and video clips talking about his sense of personal responsibility for the troops and his commitment to their cause.

Taking it all in, my gag reflex was forced into overdrive. If I were vulgar I would label those covering the visit as “useful fools.” If I were nasty I would simply call them “tools.”

Whatever morale boosting the visit may have occasioned amongst the NZDF troops, this was a PR exercise/photo op/sound bite exercise of the first and crassest order. Let me explain why.

“Secret” trips by Western political dignitaries to troops in conflict zones usually do not involve a pack of media figures tailing along. That is because real morale boosting is about the troops, not the dignitary’s image back home. Troops like to be appreciated by their political leaders, and that can be done without media fanfare. In fact, most troops prefer the appreciation to be given in private and not in the glare of cameras (and in fact, NZDF personnel other than Defense Chief Tim Keating were not identified in the reportage of the visit). Bringing media along turns the exercise into a circus side show that is more about the dignitary than the troops. And so it was on this occasion.

The media coverage of the trip was not of the “embedded” type. Embedded journalism, which has many problems associated with it, is the practice of placing journalists for extended periods of time in military units. This was no such instance. Instead, it was a government funded junket for a select few media types.

The coverage was boot-lickingly atrocious. Beyond the vapid commentary about dust storms, aborted plane flights and chopper rides, the description of the NZDF focused on the harsh terrain, nasty weather and the need for security. TV viewers were treated to images of Iraqis running around pointing weapons and kicking doors and were told by Iraqi officers via translators that the trainees were determined to fight for their country and fellow citizens. John Key spoke of how awful the place was and how two years was all that he was prepared to keep the NZDF there (the first rotation of NZDF troops is about to leave Taji and be replaced by a new cadre. The composition of future cadres may not necessarily resemble the first one, where 16 trainers are protected by a couple of platoons of infantry along with medical and intelligence personnel).

Although all of the coverage was vacuous, that of a print reporter from Wellington takes the cake for most ignorantly obsequious. Among other gems, she claimed more than once in her reports that the PM as well as herself where outfitted in “full body armour.”  Photos of the visit suggest otherwise, since Key is seen on base in a flak jacket, shirt, pants and a baseball cap. Most of the military personnel around him were dressed in basic uniforms with no armour or helmets, save Iraqi recruits running drills and his personal protection force (30 “non-deployed” SAS soldiers, which is a bit of overkill when it comes to that sort of thing and makes one wonder from where they were sourced since 30 is a significant chunk of the unit). There is even one photo of Key walking along with some guy in a suit.

According to this particular reporter, her “full body armour” consisted of a flak jacket and a helmet. I reckon that she needs to be briefed on what being fully body armoured entails. And the guy in the suit may want to consider his status if everyone but him in the entourage were given helmets and flak jackets.

The entire gaggle of NZ media regurgitated the line that the NZDF was making a difference and the training was a success. This, after a day at the base and, judging from the tone of their reports, never talking independently with anyone on it (the NZ  media were accompanied by “minders” at all times).

We are told that 2000 Iraqis have been trained and returned to the front lines and that the mission has been a success. My question is how do we know what success is in this context?’ The NZDF states that Iraqi troops are trained in six week blocks in groups of battalion size. Assuming that the figure of 2000 is correct, that means that over the 5 months of NZDF training at Taji there have been 3 light battalions of 500 troops trained and sent to the front, with a fourth group soon to graduate before the original NZDF deployment ends.

It is a pretty admirable task for 16 trainers to accomplish. With a ratio of recruits to trainers of approximately 30:1, that is a lot of contact hours for the trainers. Given that ratio, has there been any burnout amongst the trainers given the cultural differences and widely variant notions of military professionalism between them and the recruits? Have any of the original soldiers sent to Camp Taji in May had to leave, and if so, why? If that is the case, what was the contingency plan?

More broadly, what is “success” when it comes to the training mission? Does success mean that all who entered the training completed the course, or that some significant percentage did? Does it mean that there were no green on blue “incidents?” Does it mean that the recruits came in like rabbits and left like Rambos?

Then there is the issue of post-training success. Has it been confirmed that the troops trained by the NZDF did in fact return to the front and achieve battlefield successes? If so, what were they?

I wonder about that because Mr. Key mentioned that the problem of unreliable Iraqi officers still exists (and those are the officers that presumably will lead the NZDF-trained troops into battle, which begs the question why officer training was not part of the mission). He also admitted that the Iraqi Army has not retaken any of the large towns and cities that Daesh has occupied (like Mosul, Falluja and Ramadi), that the NZDF personnel were restricted to the base because of security concerns and that the road between Taji and Baghdad was impassable by land due to the threat of IEDs and/or Daesh attacks. In light of that, what ARE those freshly trained soldiers doing?

One thing is certain: we will never find out from the press junket crowd because none of them appear to have asked questions to that effect or if they did, they chose not to report the answers. Instead, they seem to have taken the NZDF and Iraqi Army’s word at face value.

I will not comment on the debacle of having the Iraqi Prime Minister’s office publish photos of his meeting with Mr. Key in advance of Key’s secret visit to Taji, in contravention of the security protocols imposed by the NZDF and NZ government. As one wag noted, that was not too bad a security breach so long as Daesh only read the NZ Herald (or presumably watched NZ TV or listened to NZ radio).

In any event what is clear is this. With the complicity of major media outlets, Mr. Key has added troop visits to his pandas and flags repertoire of diversions. In saying so I in no way mean to denigrate the work and sacrifice of the NZDF soldiers at Taji or downplay the difficulty of their mission. Nor do I discount the positive impact his visit has on the NZDF personnel deployed, or the diplomatic and symbolic overtones of it. I simply do not think that the visit was about the troops per se. Instead, I think that the trip was a propaganda exercise that was more about burnishing the PM’s image as well as softening up the NZ public for a possible announcement of future changes to the NZDF mission in Iraq (and Syria).

It is a pity that none of those from the press gallery who were invited to join the PM on his meet-and-greet with the troops thought to wade through the fluff in order to cut to the chase of the matter. On the other hand, perhaps that is precisely why they were chosen.

Imagine if Jon Stephenson had been on that trip. I am willing to bet that not only would his reporting have been very different, but it would have set the tone for the entire group to be a little more serious in their scrutiny of the event. Then again, pigs will fly before such a thing ever happens.

Some questions about the Stephenson case.

datePosted on 13:53, October 3rd, 2015 by Pablo

Although it has been shamefully underreported by major media outlets in NZ, war correspondent Jon Stephenson has won his defamation case against the NZDF by forcing a settlement that involves significant compensation and an admission by the military that its defamatory statements about Mr. Stephenson were indeed untrue. It remains to be seen if the Prime Minister will do the same, since he opined at the time the controversy erupted over Mr. Stephenson’s internationally recognised article “Eyes Wide Shut” in Metro Magazine (May 2011) that Mr. Stephenson was, to paraphrase closely, “unstable” as well as “unreliable.” That has been proven to be false and Mr. Key knew at the time he uttered his comments that they were untrue. Let us be clear: Mr. Stephenson may be driven, but unlike his main accusers when it comes to reporting on the NZDF he is by no means unreliable or a liar.

I wrote the following as a comment over at The Standard but feel that it is worth sharing here:

“I suspect that we have only seen the tip of the iceberg when it comes to the unethical behaviour of the NZDF and political leadership in this affair. Remember that there is a MoD involved and the respective ministers then and now (Coleman and Brownlee). There are more officers involved than retired generals Rhys Jones and Mateparae, some who currently hold senior positions within the NZDF. There is the behaviour of Crown Law to consider. There is the slander on Jon’s character uttered by the PM.

I can only hope that the terms of the settlement do not prevent Jon from publishing more details of his case, including the way in which the legal process unfolded, the obstacles to discovery encountered, and the extra-curriculars surrounding them.

Whatever happens, for once in a long time one of the genuine good guys won. Were it that other members of the press corps (Nicky Hager excepted) had the integrity and courage exhibited by Jon both in the field as well as on the home front.

Kia kaha Jon!”

Beyond what I have written above, there are some other questions that arise from this saga.

For example, in 2013 Nicky Hager revealed that the NZDF electronically spied on Mr. Stephenson in 2012 using NSA, GCSB and SIS assets while he was in Afghanistan. At the same time an internal Defense manual was leaked to the media that identified “certain investigative journalists” as hostile subversion threats requiring counteraction because they might obtain politically sensitive information (one does not have to have much imagination in order to figure out who they are referring to). In parallel, reports emerged that NZDF officials were sharing their views of Mr. Stephenson with Afghan counterparts, referring to him in the same derogatory terms and implying that his work was traitorous or treasonous.

Taken together, both the spying on Mr. Stephenson and the characterisation of him passed on to NZDF Afghan allies can be seen as a means of counteracting his reporting. But if so, what national security threat did he really pose? Is politically sensitive information necessarily a threat to national security or is merely a threat to the political actors being reported on? Is intimidation part of what the NZDF considers to be proper counteraction when it comes to journalists plying their trade in a war zone? And since any counteraction or counter-intelligence operations had to be cleared and authorised by the NZDF and political leadership, were both of the types used against Mr. Stephenson authorised by then NZDF Chief Lieutenant General Richard Rhys Jones and/or Mr. Key? They deny doing so but if that is true, who did and how was it passed down the chain of command to the field commanders in Afghanistan (because, at a minimum, the order to “counter” Mr. Stephenson could be construed as illegal and therefore challengeable–but it never was).

Leaving aside the legitimate role of independent journalism in a democracy in holding policy makers–including military leaders–to account, what does it say about the NZDF that it sees such work as subversive? More alarmingly, if the reports are true, what exactly did the NZDF leadership hope to accomplish by telling Afghans, while Mr. Stephenson was in Afghanistan, that he was a threat to them?

Then there is the issue of the lie. General Rhys Jones claimed that, contrary to what was written in his story, Mr. Stephenson never visited the base in which the Crisis Response Unit (to which NZ SAS were attached) was located and did not talk to its commander. That was a direct challenge to Mr. Stephenson’s journalistic integrity. Mr. Stephenson sued for defamation and during the first trial (which bizarrely ended in a hung jury) the NZDF and Rhys Jones himself admitted that Mr. Stephenson’s version was true.

So why didn’t the trial stop right there? The moment the truth of Mr. Stephenson’s story was admitted by Rhys Jones, it was supposed to be game, set and match to the journalist. But instead the Crown spent hundreds of thousands of taxpayer dollars continuing to litigate in that trial and then the follow-up court process that was ended by the recently announced settlement. Why so?

The answer to the last questions seems to be that, like in the Zaoui and Urewera 18 case, the Crown prefers to bleed its adversaries emotionally and financially even when it knows that it can not win. This death by a thousand cuts approach, courtesy of the taxpayers largesse, is as unethical as it is cynical and undermines the belief that justice in New Zealand is blind and universal.

There are many other questions that need to be answered about the treatment of Mr. Stephenson. Is it true that media outlets were pressured to not accept his work on penalty of getting the cold shoulder from the government? Did NZDF officials physically threaten Mr. Stephenson in New Zealand? Did the intelligence services spy on Mr. Stephenson above and beyond what was reported by Mr. Hager, both at home and abroad, and are they doing so now, and on what grounds if so? Did NZDF and/or MoD and/or PMDC and/or Crown Law officials conspire, either solely or together,  to cover up, obstruct, alter, destroy or otherwise impede the release of evidence to Mr. Stephenson’s lawyers at any point in the legal proceedings?

My sincere hope is that the settlement agreed to by Mr. Stephenson and NZDF does not preclude the former from writing about his experiences with the NZDF, both in Afghanistan and during the trials. Hopefully he will be able to answer some of the questions I have posed above. I say this because something stinks about the way this affair has been handled at the highest levels of government, which is not only a stain on the individuals involved but a direct affront to basic tenets of liberal democracy.

Trading with the Mullahs

datePosted on 18:45, September 17th, 2015 by Pablo

I was a replacement panelist invited by the New Zealand Institute of International Affairs to join a discussion in Wellington on the Iranian nuclear agreement. It was a a pleasant event that addressed the pros and cons of the deal. I was impressed with some of the speakers, particularly Dr. Parsi from Lund University (speaking via Skype). I was less impressed with the Israeli discussant and the statements (not question) by an official from the Iranian embassy who was in the audience.  All in all, it was an engaging affair and I encourage the Institute to continue with such public outreach efforts.

I spoke a bit about how the deal can be viewed on two analytic levels: as a First Image (interstate) issue and as a Second Image (domestic sources of foreign policy) matter. I mentioned that a way to conceptualise the agreement is as part of a “nested game” (to use a game theoretic term): the deal is part of a series of interlocked interactions (or “games’) that can be seen much as those iconic Russian dolls are (one inside the other) or as building blocks towards a larger whole. I noted that the core of the agreement was to exchange trade for recognition and security–in other words, Iran gets more trade and recognition of its legitimate interests and stature as a regional power by putting the brakes on its nuclear weapons development program with an eye to cancelling the weapons program altogether should the agreement prove beneficial for all sides. They main lever is another trade-off: dropping of international sanctions against Iran in exchange for a rigorous international (IAEA-managed) inspections regime.

For those who are not familiar with the agreement, it is not a bilateral US-Iran affair although they are the major players in it. Instead, the treaty was negotiated by the P5+ 1 parties and Iran, the P5+1 being the permanent UN Security Council members (the US, UK, France, China and Russia) plus Germany. For those interested in the details of the deal, the official US government position is outlined here (which includes the text of the full Agreement itself). A US translation of the Iranian interpretation can be found here. The fact that the P5 agreed to the deal is remarkable given their history of disagreement and subterfuge on matters of international security.

There was an interesting sidebar about “breakout time” introduced by the Israeli, who waxed hysterical about the apocalyptic implications of the deal. Dr Parsi noted that “breakout” refers to the time needed to enrich uranium to weapons grade, in response to the Israeli claim that the deal gave the Iranians a breakout potential of one year. Prior to the deal, that enrichment breakout threshold was two weeks. The point is that “breakout” time refers to the time needed to begin enriching uranium to weapons grade rather than the time needed to build a bomb.

Dr. Parsi noted that “breaking out” on enrichment is not the same as putting nukes on missiles. I said nothing at the time but here I actually know a bit without being a nuclear scientist ( I studied nuclear strategy under one of the original strategists behind the nuclear bombing of Japan and so-called MAD theory. He grappled with the moral dilemmas involved in front of me and my student cohort at the University of Chicago (home of the Manhattan Project) and later changed his mind with regard to MAD). The notion that Iran can start enriching uranium or reprocessing plutonium to weapons grade in a short period of time and then quickly build a missile launched nuclear warhead is simply mistaken.

From a technical viewpoint beyond the specifics of Iran’s enrichment and reprocessing programs, the problem of weaponising nuclear material is simple. Unlike the multi-ton “dumb” bombs that were dropped on Hiroshima or Nagasaki using concentrated high explosives as triggers focused on the nuclear material, the bulk of testing then and now consists of reducing the nuclear payload to a size that can be carried in the nose cone of an (increasingly small and light) intermediate range or intercontinental missile (IRBM or ICBM). The smaller the size of the delivery vehicle, the better its chances of avoiding surface to air or air to air interception. Given that requirement and the need for accuracy, nuclear payloads share very tight space with guidance systems. All of which is to say that given the weight constraints on a high velocity long range projectile, the “bomb” has to be miniaturised for maximum bang for the buck. Doing so requires downsizing the trigger mechanism from focused high explosives to something else. Laser triggers are one option. There are others.  All of them are off limits to the Iranians irrespective of the deal. So not only is the fear of “breakthrough” unfounded and exaggerated for political purposes, but the real concern regarding mounting nukes on missiles is subject to  both contractual and non-contractual enforcement.

My general view is that the agreement is worth doing. Other speakers and I commented on the downside, which mostly involves the reaction of Israel and the Sunni Arab oligarchies as well as domestic opponents in Iran and the US. I noted that there are disloyal hardliners in both the US and Iran that have potential veto power over the deal in the future should governments change, and that it was imperative for the soft liners or pragmatists to accrue tangible benefits from the deal in order to resist the sabotage efforts of hardliners who have vested interests in keeping tensions alive between the two countries. I made the point that Iran is more akin to Cuba than North Korea, and can be brought into the community of nations so long as it was recognised as a regional power with legitimate interests.

Speaker’s times were very limited (7 minutes each), so I was unable to fully address what I had intended to say. So let me do so here.

The lifting of sanctions on Iran as part of the quid pro quo at the heart of the deal opens a window of trade opportunity for New Zealand exporters and importers (more so the former than the latter). Coincidentally,  Foreign Minster Murray McCully has announced that in a few weeks he will be leading a trade mission over to Iran to discuss those opportunities. This is in advance of the implementation of the accord (which goes into effect at the start of next year) and is, as far as I can tell, the first official Western government led trade mission to Iran in the wake of the signing of the agreement.

But let us be clear on what that mission needs to entail. Although Iran’s human rights record needs to be mentioned, however pro forma by McCully, to his Iranian counterparts, the point that must be emphasised is that New Zealand’s opening of trade relations with Iran is absolutely, explicitly contingent upon Iran adhering to its part of the bargain. Should Iran in any way shape or form renege on the letter or the spirit of the agreement and the inspections regime that it authorises, then McCully needs to make clear that New Zealand will terminate or at least suspend until Iran complies all imports and exports to the Persian giant.

I say this because under McCully and Tim Groser MFAT has turned into the Ministry for Trade with Anyone for Trade’s sake. Human rights and non-proliferation are not part of the Groser/McCully negotiating agenda. But in this instance both need to be and the latter has to be. The profit margins of New Zealand exporters and importers and the tax revenues derived thereof must not and cannot supersede New Zealand’s commitment to upholding the terms of this non-proliferation agreement in the event of violations. Those involve re-imposing sanctions, and the bottom line of private interests must not come before the commitment to non-proliferation, especially given New Zealand’s long held diplomatic stance on the matter.

McCully also needs to explain to New Zealand importers and exporters that any contracts they let in Iran are contingent and externally enforceable. That is, they are contingent on Iranian compliance with the inspections regime and the overall thrust of the Agreement (which is to reduce the prospect of weaponising its nuclear program); and they are subject to outright cancellation or suspension by the New Zealand government under penalty of law in the event Iran reneges or violates its side of the bargain. There are opportunity costs and risks involved, and these need to be outlined to interested parties in advance of the mission.

From announcements so far, it does not appear that the National government is interested in making such demands of the Iranians or its market partners. Instead, it appears that it is opportunistically jumping to the head of the cue of potential trade partners and will let the private sector lead the charge into trading with Iran. That is curious because McCully speaks of “not getting offside” with the P5+1, but the very fact that he mentions the possibility of “getting offside” indicates that he and his MFAT minions are considering the costs and benefits of doing so.

The Iran deal hinges on two things: verification and enforcement. There are instruments in place to verify that Iran is upholding its part of the deal. The sanctions will begin to be lifted on January 1, 2016. But it is enforcement of the terms that is the most uncertain aspect of the Agreement. If New Zealand does not explicitly tie its renewed trade with Iran to the latter’s compliance with the terms and be prepared to halt trade with Iran in the event that it does not comply, then it will begin the slippery slope of undermining the deal. For a Security Council member that depends more on reputation than power for its influence, and which has a past record of leadership on non-proliferation, that is a hypocritical and ultimately vulnerable position to be in.

Is there a Kiwi word for “mission creep?”

datePosted on 16:51, September 11th, 2015 by Pablo

Well, it was bound to happen. After all the hemming and hawing and the kerfuffle that led to the announcement that New Zealand was sending 143 troops to Iraq as trainers and their force protection, the Prime Minister has now said the he would consider eventually sending to Syria a Provincial Reconstruction Team (PRT) such as those previously deployed in Afghanistan. He said as well that he was open to the idea of deploying NZSAS in Syria as target selectors for anti-Daesh air-strikes. So much for his previous ironclad assurances that the training mission was the extent to which the NZDF would get involved in the anti-Daesh fight.

What is interesting about his statement is that he has the order of engagement reversed. For the PRT (which deploy about the same number of personnel as those currently stationed in Iraq) to be tasked in Syria Daesh will have to be pushed out of it, or at least significant portions of it. Even then, the mission will be difficult as the experience in Bamiyan attests (six of the nine NZDF combat dead came from the Bamiyan PRT, and Bamiyan was considered one of the safer Afghan provinces). However, for an eventual PRT deployment in Syria to happen, the conflict against Daesh will have to be ramped up exponentially, which is something the European members of the coalition and Australia are currently in the process of doing. The UK has started to use lethal drones against Daesh targets (primarily British citizens), and the French and Australians have decided to increase the number of air strikes they will fly against Daesh in Syria as well as Iraq.

Part of the air battle against Daesh in both Iraq and Syria is the use of UK, Australian and US special forces as target finders. US Army special forces are now fighting alongside Kurdish peshmerga in northern Syria, and it is widely believed that UK and Australian SAS are doing a bit more than just finding targets for air strikes, to include nighttime raids on Daesh facilities and troop formations in Iraq as well as Syria.

The New Zealand government denies that the NZSAS is in the conflict theatre, but it would be naive to take that assertion at face value given the close working ties between the NZSAS and the afore-mentioned special operators already there. If for no other reason, that scenario is possible because deploying of SAS assets in Syria in any role requires a fair bit of lead-in time, something that has now grown short as the migrant crisis deepens. There is some urgency to finding a front and back-end solution to the crisis: addressing the refugee flows on the back-end in Europe but upping the ante on the front-end (the Syrian/Iraqi conflict zone) so as to stop the refugee flows from continuing.

That is going to take some doing. The Iraq armed forces are no closer to re-taking Ramadi than they were before the NZDF “advisors” arrived in May. The oil refinery town of Baiji, north of Camp Taji where the NZDF troops are stationed, is still surrounded by Daesh fighters and at risk of falling to them. Mosul remains in Daesh hands. In Syria the Russians have decided to put skin into the game by sending the 1000-strong 810th Marine Brigade to Latakia (where Russia maintains an electronics signals intercept station) while reinforcing its naval base at Tartus. US intelligence has reported hearing Russian voices on Syrian armoured communications, which is not surprising given that Russian crews fought in Syrian tanks in the 1967 and 1973 wars with Israel.

Russian involvement should be seen as a potentially positive development as it has indicated that it is open to joining the coalition against Daesh. It differs on the question of what to do with Assad, but the hard fact is that no solution to the Syrian civil war will come without Russia at the negotiating table (and Iran, for that matter). Sending combat troops to bolster Assad gives the Russians increased leverage as well as a greater stake than what they already have (which is considerable given that over 100,000 Russian citizens live in Syria and the Assad regime is its closest ally in the Middle East). Most importantly, it takes pressure off the West to solely shoulder the burden of rolling back Daesh. With the Russians and Iranian-backed shiia militias (including Hezbollah) on board in both Syria and Iraq and air strikes on Syria added to the coalition target list, a simultaneous pincer movement on Daesh in Iraq and Daesh in Syria can begin. Cutting off cross-border re-supply routes will be a priority and once that is accomplished, the squeeze can be placed on places like Mosul and Raqqa (the de facto capital of the Islamic State).

There is much more to the scenario and it will inevitably be ugly. Turkey is now involved but spending more time trying to kill Kurdish PKK fighters than those of Daesh (and the PKK obliges the Turks by turning its guns on Turkish targets) That will have to change, or at least Turkey’s security priorities will have to be reversed–Daesh first and then the PKK. Iran and the West will need to find an accommodation with regard to the former’s armed proxies in Iraq and Syria (something that has tacitly occurred in Iraq between Coalition forces and the al-Sadr Brigades). Other European and Middle Eastern nations will have to increase their military contributions to the fight. But it is clear that there is movement in these regards.

It appears that the refugee crisis has been the tipping point for that to occur, which is why the front- and back-end solution set is now being addressed and why John Key is being asked about what NZ proposes to do on both ends. If his recent waffling about the NZDF role is anything to go by, the process of mission creep could soon be underway and may well have started already.

Some thoughts on Syrian refugees.

datePosted on 16:57, September 4th, 2015 by Pablo

I must be getting soft, but the image of the drowned Syrian child haunts me. Perhaps it is because I have a two year old or perhaps I am just getting sentimental and weepy in my advancing age, but it is doing my head in. I am not going to be the same for having seen it.

I say this because I have watched and read the coverage of the crisis for a while now and like so many others have not only wondered why the EU cannot craft a viable humanitarian response, but have also been struck by the nasty attitude of so many commentators here in NZ as well as in Europe, most of them on the Right, when considering the plight of these godforsaken people. So let me outline my thoughts on the matter.

The Syrian civil war is a man-made humanitarian disaster. Had it been a natural disaster with the same human impact, I doubt that the response would be the same as it is today. It no longer matters who started it, who is involved, who is to blame and when it might end. The people who are fleeing the war are non-combatants whose hand has been forced by events beyond their control. Those who say they have a choice to stay or go are either fools or cynics. That is like saying that a person subject to domestic abuse has a choice to stay or go. Or that a person has a choice to stay or go in a fire. Sure, they could stay but is that really an option? Did that Syrian child and his family really have a choice? Did they deserve their fate for having “chosen” to seek refuge in a supposedly safe part of the world? (the mother and two boys, ages 3 and 5 died; the father survived and has returned back to Kobani to bury them).

When people up stakes, leave most of their material possessions behind and bring their children on perilous journeys to foreign lands to which they have no prior ties and which are culturally alien to them, they are not “migrants.” They are refugees fleeing catastrophe. It does not matter if the catastrophe is human or environmental in nature (and in Syria it has been both). The bottom line is that they have undertaken great risk–in fact, they are risking it all–to flee the country of origin because of a calamity that is no fault of their own. They are refugees seeking safe haven wherever they can find it (which means a place that is stable and economically viable), and any attempt to define them otherwise is not only wrong but viciously inhumane.

Many of those leaving are secular Muslims and Christians who have been targeted by either Assad’s forces, Daesh or both. Many are the bulk of the shopkeeping and white collar service classes whose livelihoods have been destroyed by four years of war. The majority are moderate in their beliefs and political orientation, which is why they (or at least the men) have chosen not to fight. Their children have no educational opportunity at home, much less future careers.  They do not seek passage to Europe to establish a caliphate or even Islamise it. To the contrary, they are fleeing exactly that possibility.

For those who say that they should have “chosen” to seek refuge in Gulf or North African Muslim states, be aware of two things: 1) they are refused at the borders; and 2) they are considered undesirables in any event given their relative secularisation and the fact that they are considered second-class Arabs (as are Palestinians) by many Gulf oligarchies (they very same that are funding and arming Daesh). So that possibility simply does not exist.

Refugees do not choose to leave or where to stay. They may have their preferences but they live at the mercy of others. But that is the operative term: mercy. Along with compassion and empathy, that is what distinguishes open societies from closed ones.  And yet Europe has shown itself closed-minded on the issue in spite of the ongoing tragedy unfolding on their beaches and doorsteps.

Unfortunately, in today’s polarised ideological climate those virtues are disappearing in the West. That includes New Zealand, where Islamophobia and the “greed is good” mantras of the so-called neo-liberal elite have combined to encourage xenophobic, “me first”  “f*** them” attitudes in the population. In spite of the fact that as far as I can tell no Syrian has ever done harm to New Zealand (and NZ has a small Syrian expat community), the National Party and its supporters do not want to increase the country’s refugee quota in the face of this humanitarian crisis. It apparently does not matter that NZ’s international reputation as a humane and open society rests in part on its attitude towards refugee issues. Nor does it apparently matter that as part of the UN Security Council, New Zealand has a diplomatic obligation to lead by example. Or that a broad reading of the Responsibility to Protect doctrine suggests that protection be awarded to those fleeing conflict as well as those immediately subject to it.

Say what you will, the Syrian exodus is a true humanitarian crisis. The people fleeing are refugees, not migrants. The world, or at least that part of it that is open and funded on notions of compassion, empathy and mercy, has a duty of care to them. It is therefore imperative, and a matter of pure humanity, for Europe and other open societies to step up and help the refugees as much as possible. We may ask ourselves why China, Russia and other nations do not heed the call of the desperate. But the fact is that it does not matter whether they do or not. The moral imperative is to ourselves as well as to those in need.

That is why it is despicable for the Key-led government to shirk its responsibilities on this matter. We have the room, the facilities and the community to support an increased refugee quota targeted at the displaced Syrians. The people we accept will be vetted and are highly unlikely to be interested in jihad or Islamisizing the country. If we can spend $28 million on a flag referendum and $42 million on a boat race challenge, then surely we can find some (considerably less) money to cover the costs of their assimilation. And who knows, we as well as they might be the better for it.

To not do something is a sorry indictment of what we have become as a society, and for those in the government that refused to act, their collective shame will last long after they have departed. The bottom line is clear: regardless of partisan orientation the time to act is NOW.

Go The Donald!

datePosted on 15:25, September 1st, 2015 by Pablo

I am lucky to be able to vote in the US as well as NZ, and very much relish the opportunity in both countries. In the US I am registered as a voter in Florida, which is a closed primary state. “Closed” primary states are those in which a voter has to declare a party preference prior to the primaries in order to vote in them. For years before and after I established a residence in Florida I listed my political affiliation as “Independent,” something that allowed me to choose a primary to vote in the “open” primary states where voting preferences did not have to be declared prior to primary season (they only have to be declared and ticked off on the day at the balloting station). In 2008 I decided to switch my declared affiliation to Democrat so that I could vote in the Florida Democratic Party primary given that not only were Obama and Hillary running for president, but there were races for the US House, Senate and local seats that needed to see Republicans defeated.

This year I am going to switch affiliation to Republican. Why? Because that way I can vote for Donald Trump in the Republican primary in the hope that he makes it to the GOP National Convention next July. It has been a very long time since either major party has had a brokered convention where several candidates are in the running for the presidential nomination, and should The Donald survive until then the craziness will be well and truly on. Since he is totally unqualified to be dog catcher much less president and unelectable in the general election, it is my sincere hope that he hangs in all the way to the convention and either becomes the GOP candidate, determines who is, or runs a third party candidacy after losing out in the convention to one of the others. The only thing better would be for Kanye to join that gaggle of fools and trolls but, alas, he is going to wait until 2020 to run.

Already The Donald has become to the GOP what Miley Cyrus is to pop muzak: a wrecking ball. The Republican National Committee must be choking on their Cohibas (illegal until the recent diplomatic reopening with Cuba) and dying a slow death every time he speaks or when they read the polls. Because let us be clear: Trump appeals to the stupidest, xenophobic, economically illiterate, racist, bigoted, misogynist, white cultural supremacist elements in US society. He follows in a long line of populist demagogues that extends back through Ross Perot to Pat Buchanan, George Wallace and Huey Long.  He may purport to speak unvarnished truth but in fact what he says is most often non-sensical rubbish that fails to address reality much less the intricacies of democratic governance with a division of powers: he is going to “do the deal” with whomever; most Mexicans are rapists and drug dealers; he will “build a wall and make Mexico pay for it” (along 1,900 miles of topographically challenging terrain that includes numerous sensitive ecological zones and wildlife corridors); he will deport “illegals ” and their “anchor babies,”  (all 14 million of them); he will simultaneously confront China, Iran and Russia; he will make the US military “great” again so that no one will “mess” with it (forgetting that the US spends more on defense than the next seven countries combined–US$610 billion or 20 percent of US federal spending and 3.7 percent of GDP–and still has people “messing” with it); he will provide better women’s health care in spite of gutting Planned Parenthood and removing health care for “alien” women because he “cherishes” women in general (ignoring the fact that two of his wives were not citizens when he married them). Everyone in politics but him are incompetent or idiots. His speeches are endless repeats of these and other inane mantras interspersed with self-congratulatory self-praise and personal insults directed at his rivals, all other politicians and anyone who disagrees with him.

The truth is that he has no plan, has no policy agenda, has no friggin’ clue what it is like to deal with the complex issues that confront the US. And that is why the rednecks and dimwits like him. He makes the hard seem easy.

What is great about this is that he is forcing the other GOP candidates to respond to him, and they have stepped up to the plate in predictable style. Among other gems, Ben Carson (the neurosurgeon) says homosexuality is a choice because men go to prison straight and come out gay; Scott Walker just suggested that building a 3,987 mile wall on the Canadian border is worth looking into; Jeb Bush wants to abolish Planned Parenthood and believes that the invasion of Iraq “turned out well;” Ted Cruz and Marco Rubio want walls and deportations even though they are children of recent immigrants who were legally documented after, not before their arrivals. They all claim that the US military and its veterans have been crippled by Obama even though it was Bush 43 who ordered them into two simultaneous wars while cutting back veterans benefits as well as the budget for post-combat trauma rehabilitation. They all claim that ISIS is an Obama invention even though it was Dubya’s purge of Saddam’s army that provided the leadership material for what became ISIS’s fighting forces. They all oppose gun control and climate change science and all support hacking, fracking, drilling and spilling regardless of environmental consequence. They all oppose abortion and gay marriage even if some of their past records indicate otherwise. The list of idiocy goes on but should not surprising given that Rick Perry, Rich Santorum, Mike Huckabee and several snivelling weasels remain in contention.

As things stand now, the GOP primary is a circus. There may not be any juggling or animal acts, but there sure are a lot of clowns, and The Donald is the ringmaster. Even if the number of viable candidates drops to 2 or 3 by the time of the GOP convention, it will be Trump who sets the Right’s narrative for the general election. Yippee!

It looks like the US media has decided to sit back and watch the circus unfold. Fox News tried to undermine him in the first debate that it aired, but his nasty personal attacks on the female panelist only strengthened his support among the troglodyte crowd and has forced Fox to backtrack and give him coverage as the Party favourite. All other outlets are content to watch the train wreck proceed while offering the mediocre tedium that passes for informed analysis by the usual spectrum of pundits. As a result, the GOP favourite, Jeb Bush (or “Mr. Low Energy,” as The Donald calls him) has seen his coverage slip to the sidelines along with the other yokels. Likewise, for all of the Fox News chest beating, Hillary Clinton is getting a general pass by the press because her sins are run of the mill when it comes to DC politics and her campaign is about practicable policy, not theatrics.

The key to the outcome will be seen in January when the first GOP primaries are held. If The Donald does well in them he will be hard to stop. So the RNC has to find a way to do him in either before then or to go all out nuclear on him should he prevail in Iowa or New Hampshire. That is when the questions about his draft dodging, drug use, association with organised crime, commercial racism, trust fund baby status, adultery, academic record embellishment and a host of other peccadilloes and not-so-small sins will find their way into the mainstream media. But even then he may be too big a juggernaut to derail in time for the GOP to coalesce around another candidate who may stand a chance in the general election.

I cannot begin to express how delighted I am to watch this unfold. The Donald may well force the GOP to split into two, with the Tea Baggers on one side and the corporate sponsors on the other.

Either way, he is single-handedly killing the US Right as a unified political force.

For that I have one thing to say: Go The Donald!

I have been working on a long term project that focuses on intelligence networks in the South Pacific. A number of off-shoots have stemmed from the central concern (mapping intelligence communities and alliances), including strands dedicated to the NZ intelligence community and the problems of threat assessments in general. In this piece I outline three undervalued concepts in the study of foreign policy and offer some observations as to the causes of Western intelligence failures to adequately adjust, forecast and assess the evolving post Cold War threat environment.

Loansharking Greece and odious debt.

datePosted on 10:57, July 7th, 2015 by Pablo

I do not purport to be an economist nor would I ever want to be. Theirs is a world of implicit assumptions and pseudoscience that only a brave few have challenged from within. However, theirs is also a discipline that in theory and practice can shape the fate of millions, which is why I pay more than casual attention to them. Thus it is that I came to ponder the financial situation in Greece, a place that I lived in in 2010 at the start of its downward slope towards the current moment (my wife has researched and written on matters of Greek political economy and I have an interest in Greek civil-military relations, so our stay was mutually beneficial). Here is my non-expert view of things.

When lenders charge interest on principal loaned, they prefer to have the interest paid rather than the principal. This loan repayment rationale, which is true for states, firms and individuals, keeps the debtor beholden to the lender so long as the principal remains unpaid. Over time, the interest accrued can well exceed the amount lent, which is perfectly fine from the lenders point of view but keeps the debtor permanently saddled in a cycle of interest payment unless the debtor earns additional income (revenue) that can be directed towards paying down the principal. Short of a lottery win, a pay raise or new sources of revenue, debtors on relatively fixed incomes are locked into the cycle of debt.

Greece is in that situation. Until 2008 it was servicing the interest payments on its debt to international lenders (mostly the European Central Bank, various national banks and private investors). Then the international financial crisis of 2008-09 hit, which had nothing to do with Greece per se but which drove up interest rates. With a stagnant economy and flat tax revenues, Greece quickly found itself unable to make interest payments and, in a dramatic revelation, announced in 2010 that it had been systematically underestimating its fiscal deficit in order to maintain interest payments on its debt at a sustainable rate. At that point many private investors dumped their Greek debt holdings and the IMF assumed a significant portion of them as well as some of that accrued by European public banks.

The Greeks were subsequently offered two “bailout” loans that allowed them to continue to pay the interest on their debt, which together with the principal now amounts to nearly 250 billion Euros. With interest set at approximately 4 percent annually, the figure is set to reach the half trillion euro mark in a few years. Even if interest rates were capped at zero, it is estimated that it would take Greece 81 years to repay the amount currently owed.

There are several questions arising from the Greek debt. Why, since the interest paid is now more than the principal borrowed, does not the ECB and IMF put a cap on the debt? Why did investors continue to offer loans to Greece when it turned out that the Greeks were fiddling the books, and that neither the principal or the repayment loans ever trickled down to the general public in terms of public goods and services? Why does it expect the Greek population to pay via austerity for the risky borrowing of Greek elites and the even riskier lending of European banks?

Asking the Greek people to shoulder the burden of austerity–in a country with 30 percent general unemployment and 50 percent unemployment for those under 30, with a massive brain drain of educated professionals, porous borders and deep cuts to public sector salaries, pensions and basic services–is akin to forcing the children of crack addicts to starve and swab floors in order to pay for the rehab treatment of their parents. And the outcome is just as uncertain.

Let’s look at it this way. Capitalism is about assuming risk for higher reward. In the financial world, the riskier the investment the higher the interest paid on it. And just like quick finance and pawn shops are located in poor rather than rich neighbourhoods, high interest bonds are issued on “risky” countries with poor credit ratings and histories of financial instability. For “courageous” investors riding the line between high interest and junk bonds, the rewards for so-called bailouts are great. But the downside of a default is that they will have to wear losses, just as many ill-advised investors have to.

Greece is one such high risk place and those who lent to it knew this from the beginning.

With that in mind is is easy to see that the behaviour of the “troika” (the European Commission, European Central Bank and IMF) can be (and has been) likened to loansharking and needs to be treated as such. When people seek debt relief from loansharks, banks or credit card providers, they arrange to repay a capped sum and a payment schedule is established. The alternative is bankruptcy, which leaves the creditor with nothing. Although suboptimal from the lender’s point of view, the capped payment alternative is better than nothing.

When it comes to states, the decision to cap debt is a political decision, not a financial one. That is because the stability of states is more important than the returns on risky investment, especially when ample returns have already been received, many creditors are no longer at risk and demands for future returns put state stability at peril. In the case of Greece there is a twist, in that the referendum on whether to accept austerity was the first political iteration in a multi-step process. Now that the Greeks have refused more austerity, it is the turn of the EC to make a political decision of its own.

Let’s be clear: this is not a Greek crisis; it is a crisis of European finance capital. The demand for more Greek austerity is not about servicing the debt but about humiliation, punishment and deterrence of others who might dare to do the same.

The people who should seek answers are those who invested in the agencies that undertook the high risk lending strategies that have brought us to this moment. The people who are responsible for the crisis are not average Greeks but suits sitting in fancy offices in Athens, Brussels, Frankfurt and London. They are the ones who took the risk on Greece and they are the ones who need to be held to account.

This does not absolve Greeks from their own mistakes. Certainly the culture of entitlement and the pervasive corruption in Greek society needs to be addressed. But here again, this was well known to foreign creditors at the time they lent money to Greece, and for all the everyday petty corruption in Greece involving phantom war veterans and people faking disabilities, it is the Greek political-economic elite who elevated institutional corruption to an art form. Syriza proposes to confront them as well as the lower-level scams but in order to do so it must show that it can negotiate a debt payment agreement that puts the interests of average Greeks first.

There is a way out of the imbroglio that can leave Greece in the EU without undergoing more austerity punishment. In international law there is a concept known as “odious debt.” Odious debts are those that are incurred by governments that do not go to their stated purposes or are ill-gotten from the onset. Under international law, odious debts are the responsibility of the incurring parties and are not the responsibility of their successors. As such, they do not have to be serviced by others if the responsible parties cannot be made to pay.

One can argue that the debt incurred by pre-Syriza governments from 1999-2008 fall into the odious debt category and should be forgiven as such. If anything the political parties in government during the time the debts were incurred can be sued for repayment (these being the Panhellenic Socialist Party (PASOK) and New Democracy (ND)). Whatever happens, it is clear that Greece has not seen the purported benefits of the loans incurred by previous governments (to include the now abandoned or derelict Olympic facilities) but it has paid more than its fair share of interest on them. By any reasonable measure the remaining debt is now odious.

In the end this is a cautionary tale with minor and major sub-plots. The minor plot is about sustainable debt and the limits of debt relief. The major plot is about the perils of political union. The EU needs to understand that how it addresses the minor plot will determine the conclusion of the major one.

Bonus read: Although I do not agree with some of his observations, Brian Easton has a nice short piece on the Greek situation here.


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