vrijdag 14 juli 2017

World war 3 is coming...



Afbeeldingsresultaat voor logo the independent


World war 3 is coming...



Although there has been no major combat between the great powers since the Second World War, there are three key fronts emerging that make the prospect of a third global conflict alarmingly conceivable

Youssef El-Gingihy

world-war-3.jpgFuture conflict could take the form of another cold war or even a conventional hot war, as opposed to thermonuclear Rex

The prospect of a global conflict – World War III if you like – appears somewhat unthinkable. Since the Second World War, there has been no major war between the great powers. The original post-war European project was based around peace, social justice and harmony. The unravelling of this project, accompanied by rising nationalism, is likely to exacerbate the dangers of war on a continent with a fraught history of bloody conflict.
In the 20th century, both world wars were unanticipated. Christopher Clark’s much acclaimed The Sleepwalkers: How Europe Went to War in 1914 – published in timely fashion for the centenary of First World War – charted Europe’s unexpected descent into war. First World War had been preceded by a prelude of serenity – the long 19th century of relative peace and stability. The great powers of Edwardian Europe had been engaged in diplomacy and trade prior to the onslaught of carnage.
During the 1930s, the major powers were keen to avert another war hence the policy of appeasement, the initial reluctance of the US to become involved and the Nazi-Soviet pact. Neville Chamberlain’s ill-fated announcement of “peace for our time” should be viewed in this context. Throughout the Cold War, the concept of a third world war was inextricably associated with nuclear war and the MAD doctrine of Mutual Assured Destruction.
Yet it is possible that future conflict between the great powers may take the form of another cold war or even a conventional (as opposed to thermonuclear) hot war. In the 21st century, there are three key fronts emerging as the loci for future wars. The first is the Europe-Russia front with a new cold war triggered by the Ukrainian conflict. The second is the Middle East cauldron centred around Isis and the Syrian war. The third is the Asia-Pacific front with a face-off between the United States and China.
Cold War II
Time magazine – the original Cold War mouthpiece of the American establishment – trumpeted the start of Cold War II in 2014. Western powers have characterised Vladimir Putin’s incursions into Georgia in 2008 and lately Ukraine as aggressive expansionism. Evidently the irony of the US casting aspersions around violation of national sovereignty, in light of the folly of the Iraq war, seems to have been lost. The realist perspective – as articulated by John Mearsheimer in the pages of US foreign policy bible Foreign Affairs – is that the Ukrainian crisis was preceded by two decades of NATO expansionism up to the borders of Russia. This was in contravention of promises made to respect these boundaries at the end of the Cold War.
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Time trumpeted the start of the second cold war in 2014
In this view, events in Ukraine have merely been the endgame of this process. It is worth recalling that the United States did not respond amicably to Soviet interference in Cuba in the 1960s. Such arguments have been rendered somewhat academic as they are overtaken by events. Increasing deployments of troops by both Nato and Russia, dangerous confrontations and massive war games are being played out.
The European Leadership Network (ELN) think-tank produced a 2015 report entitled Preparing for the Worst: Are Russian and Nato Military Exercises Making War in Europe more Likely? The report analysed recent war games including a Russian exercise involving 80,000 military personnel and a set of Nato war games comprising 15,000 personnel.
It went on to say that, “Both exercises show that each side is training with the other side’s capabilities and most likely war plans in mind... Whilst spokespeople may maintain that these operations are targeted against hypothetical opponents, the nature and scale of them indicate otherwise. Russia is preparing for a conflict with Nato, and Nato is preparing for a possible confrontation with Russia.”
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Mikhail Gorbachev and Ronald Reagan were able to improve US Russia relations but will the same be able to be said of Vladimir Putin and Donald Trump? (Getty)
Recently, the US has stationed troops in Poland in the largest deployment of American troops in Europe since the end of the Cold War. As reported, these US troops will also, “fan out across other eastern European states, including Estonia, Bulgaria and Romania”. Russia alarmed the Baltic states by, “moving nuclear-capable Iskander-M missiles to its naval base at Kaliningrad in the autumn”.
According to the New York Times, an American missile shield is, “to be built in Poland mirroring one already in place in Romania”. Whether Trump’s attempted rapprochement with Russia defuses the situation remains to be seen. If the cold warriors in the Atlanticist defence establishment and hard-liners on the Russian side have their way, then tensions are only likely to be ratcheted up.
Middle East geopolitics
The intrepid German author Jürgen Todenhöfer took the concept of embedded journalism to a whole new level by holing up with Isis. He points out that in the immediate aftermath of 9/11, there were only a few hundred Islamist fighters in the Hindu Kush mountains. Fast forward through 16 years of the war on terror costing some $4,000bn (£3,300bn) and leaving 1.3 million dead, according to Physicians for Social Responsibility, and the number of terrorists is currently about 100,000. Even on its own terms, the war on terror has been an abysmal failure. How on earth did this happen? Retired US General Wesley Clark revealed that, in the wake of 9/11, the Pentagon drew up plans to attack 7 countries.
These plans have been adhered to with remarkable fidelity with Western involvement in Iraq, Syria, Libya, Afghanistan, Pakistan, Somalia and Yemen. The pretext may have been terrorism but the intention was to guarantee economic and military supremacy in the region. Many critics argued that the Iraq war was fundamentally about the opening up of state assets to global capital. Naomi Klein reported that the reconstruction of Iraq was estimated to have been worth about $100bn to the US economy. In the process, Iraq was transformed from a secular dictatorship into a Jihadist safe haven. Donald Rumsfeld’s decision to disband Saddam Hussein’s Baathist army led to chaos and now makes up a significant component of Isis.
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Intelligence predicted that the Iraq war would lead to the amplification of Islamist terrorism (Getty)
The deliberate stoking of tensions through a US sponsored sectarian Shia-led Iraqi government was notable. This ultimately led to the Sunni backlash and the spawning of al-Qaeda in Iraq. This is a hallmark of colonial-era tactics of divide and rule. In fact, British and American intelligence predicted that the Iraq war would lead to the amplification of Islamist terrorism.
Back in 2007, the veteran investigative journalist Seymour Hersh posited in an extended New Yorker essay, The Redirection, that US Middle East geopolitical strategy was directed against the regional superpower of Iran and its Shia sphere of influence extending through Syria and to Hezbollah in Lebanon. Hersh has since elaborated, in a series of controversial London Review of Books essays, that the overthrow of Bashar al-Assad would have severed this Shia sphere. Following the destruction of Iraq, this sphere remained the only obstacle to US full-spectrum dominance of the world’s largest oil fields.
The Syrian war has seen allies – Saudi Arabia, Qatar and Turkey – arming and funding radical Jihadist groups, such as the al-Nusra front. Former Vice President Joe Biden – renowned for bloopers – frankly admitted as much to a Harvard audience. The Wikileaks disclosures of Hillary Clinton’s emails revealed that she too was aware of Saudi and Qatari governments arming Isis. In realpolitik, the ends apparently justify the means.
Hersh elaborates on how British and American intelligence have been enmeshed with the use of CIA front companies in an arms pipeline from Libya to Syria dubbed the “rat line”. It was under these conditions that the mutation into the Frankenstein monster that is Isis took place. In fact, a 2012 Defence Intelligence Agency memo had anticipated the rise of Isis and its establishment in Syria in order to “isolate the Syrian regime, which is considered the strategic depth of the Shia expansion”.
The terrorist attacks in Europe have demonstrated the difficulty in containing the spill-over from these policies. The Syrian war has seen the return of great-power politics with the involvement of Russia. This contamination has the potential for a wider conflict in which western countries could be drawn in. One possible trajectory is that a Sunni-Shia war along the Saudi-Iran axis looks increasingly likely. Yet this destabilisation of Iraq and Syria may well have been engineered deliberately.
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A recording of an Isis suicide bombing in al-Bab was sent out on propaganda channels last week
According to Nafeez Ahmed, documents from the Rand Corporation and US private intelligence firm Stratfor confirm this picture. An incendiary report, authored by no less than former Bush Vice President Dick Cheney and former deputy Defence Secretary Paul Wolfowitz, envisioned ethno-sectarian partitioning of Iraq. All in all, this could represent a new Sykes-Picot (the post Ottoman empire settlement) or redrawing of the Middle East carving it up into smaller, weaker territories, which are more pliable.
Back in the 1990s, the political scientist Samuel Huntington made some dire predictions of a clash of civilisations. Even in the wake of 9/11, such apocalyptic theories appeared quaint; now they no longer seem absurd. Isis directives aim to create more violence and chaos with the obliteration of the “grey zone” of multicultural societies, in which non-Muslims and Muslims live side by side, forcing Muslims to join the “caliphate”. Ironically, US policy is doing Isis’s work for them and, in another bizarre twist, it seems that Isis is aiding US geopolitical strategy.
Asia Pacific
Ghost Fleet: A Novel of the Next World War is an intelligent thriller written by PW Singer and August Cole, both of whom have national security expertise. Ghost Fleet imagines what a 21st century world war might look like pitting the US, China and Russia against each other complete with cyber-warfare, robotics and drones. But could this nightmarish fiction turn into dystopian reality? 
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China’s Liaoning aircraft carrier conducts a drill in the South China Sea (Reuters)
During the Obama administration, the Pentagon pursued the pivot to Asia aiming to transfer 60 per cent of naval bases to Asia. The US also strengthened alliances with Japan and other Far East partners to “contain” China. Economically, the US pursued the Trans-Pacific Partnership (TPP) – a massive trade agreement, which would have deliberately excluded China. Admittedly, a Trump executive order indicates imminent withdrawal from TPP. In recent years, tensions have been mounting between China and Japan.
Both sides are now equipped with vertical take-off aircraft. There have also been a series of stand-offs between the US and China in the South China Sea. The US is currently installing a missile defence system in South Korea prompting China to warn of a new atomic arms race in the region. A recent US taskforce report unsurprisingly concluded that America and China are on a dangerous collision course.
The Trump transition is likely to exacerbate US-China tensions. Trump has threatened a trade war with China. While his chief strategist Steve Bannon stated in March of last year that, “We’re going to war in the South China Sea in five to 10 years…. There’s no doubt about that.” If there is a coherent philosophy of Trumpism then it is represented by the ideology of Bannon. Bannon subscribes to the Huntingtonian idea of a coming clash of civilisations between west and east with the Orient bracketing both China and Islam.
Bannon views China and Islam as expansionist threats. He has also stated that the Judaeo-Christian west is, “at the beginning stages of a global war against Islamic fascism” and that, “We’re clearly going into, I think, a major shooting war in the Middle East again.” China will eventually overtake the US in economic terms but US supreme military dominance is unchallenged. This is a dangerous discrepancy as it means that the US will use this military power to guarantee its economic prerogative – particularly as a massive national security apparatus now seems to dictate US foreign policy. As Obama has put it, the US is exceptional because it acts.
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People watch a news report on North Korea’s first hydrogen bomb test (Getty)
This would be in keeping with the default operational mode of capitalism. One might even argue that capitalism often resolves systemic economic crises through war. After all, a war economy with militarisation, mobilisation, full employment and jingoism can be viewed as the ultimate solution to economic woes and social unrest. The transition of Western democracy to oligarchy and the descent into soft fascism is under way. Citizens will need to participate actively, rather than as passive consumers, to demand an end to this cycle of violence from governments and to defend the assault on democratic processes. We can only hope that British foreign secretary Sir Edward Grey’s refrain on the commencement of First World War – “The lamps are going out all over Europe, we shall not see them lit again in our life-time” – will not be repeated in ours. But the omens are not good. As the late Eric Hobsbawm put it, the old century has not ended well.

woensdag 12 juli 2017

JARED KUSHNER TRIED AND FAILED TO GET A HALF-BILLION-DOLLAR BAILOUT FROM QATAR





Afbeeldingsresultaat voor logo the intercept





JARED KUSHNER TRIED AND FAILED TO GET A HALF-BILLION-DOLLAR BAILOUT FROM QATAR





By Ben Walsh, Ryan Grim, Clayton Swisher




July 10 2017, 5:25 p.m.

NOT LONG BEFORE a major crisis ripped through the Middle East, pitting the United States and a bloc of Gulf countries against Qatar, Jared Kushner’s real estate company had unsuccessfully sought a critical half-billion-dollar investment from one of the richest and most influential men in the tiny nation, according to three well-placed sources with knowledge of the near transaction.

Kushner is a senior adviser to President Trump, and also his son-in-law, and also the scion of a New York real estate empire that faces an extreme risk from an investment made by Kushner in the building at 666 Fifth Avenue, where the family is now severely underwater.

Qatar is facing an ongoing blockade led by Saudi Arabia and the United Arab Emirates and joined by Egypt and Bahrain, which President Trump has taken credit for sparking. Kushner, meanwhile, has reportedly played a key behind-the-scenes role in hardening the U.S. posture toward the embattled nation.

That hard line comes in the wake of the previously unreported half-billion-dollar deal that was never consummated. Throughout 2015 and 2016, Jared Kushner and his father, Charles, negotiated directly with a major investor in Qatar, Sheikh Hamad bin Jassim al-Thani, known as HBJ for short, in an effort to refinance the property on Fifth Avenue, the sources said.

Trump himself has unsuccessfully sought financing in recent years from the Qataris, but it is difficult to overstate just how important the investment at 666 Fifth Avenue is for Kushner, his company, and his family’s legacy in real estate. Without some outside intervention or unforeseen turnaround in the market, the investment could become an embarrassing half-billion-dollar loss. It’s unclear precisely how much peril such a loss would put Jared’s or his family’s finances in, given the opacity of their private holdings.

HBJ, a former prime minister of Qatar who ran the country’s $250 billion sovereign wealth fund, is a billionaire and one of the world’s richest men. He owns a yacht worth $300 million called Al Mirqab, the same name he gave to the private investment firm that Kushner pitched. The former emir of Qatar summed up HBJ’s power with a quip: “I may run this country, but he owns it.”

HBJ ultimately agreed to invest at least $500 million through Al Mirqab, on the condition that Kushner Companies could raise the rest of a multibillion refinancing elsewhere. The negotiations continued long after the election, carried out as recently as this spring by Charles Kushner. “HBJ basically told them, we’re good for 500, subject to a lot of things, but mainly subject to you being able to raise the rest,” said one source in the region with knowledge of the deal. The talks were confirmed by two additional sources with knowledge of the talks. One of those sources claimed that the potential deal was not contingent on the rest of the money being raised and that the HBJ investment was on hold as the overall structure of the financing was reconsidered. None of the sources would agree to talk on the record about a private financial transaction that has until now remained a secret.

After the election, Kushner Companies found many more suitors interested in doing business, one of the sources, who is U.S.-based, said. One of the investors taking the deal more seriously in late 2016 and early 2017, the U.S. source said, was “Hamid bin what’s-his-name,” referring to HBJ. Top executives at Kushner Companies, the source said, “are dumb enough to not know that why they want to deal with them has nothing to do with the real estate. Around the New Year they were like, ‘LPs” — industry slang for limited partners, or investors — “are engaging more!’ It’s like, I wonder why?”

Or, perhaps, they know quite well what’s going on. The $500 million still left the Kushners far short, and to try to fill the financing hole, the company turned to China. An insurance firm there with close ties to the country’s ruling elite had been pursued for months, but, like the other investors, wasn’t truly interested in the deal until after the election. (A source familiar with the dealmaking said that the Kushners had been in discussions with HBJ since before Trump announced his candidacy in June 2015. When a potential deal with Anbang was first reported by the New York Times in January 2017, company spokeswoman Risa Heller said the talks began “well before the president-elect’s victory,” right around when he officially sealed the Republican nomination.)

White House spokeswoman Hope Hicks referred questions to Kushner Companies; a spokesman there declined The Intercept’s request for comment. HBJ declined to comment.

In March, the details of the talks between Kushner and the firm, Anbang, became public. Anbang would invest $400 million in the project and the Kushners would put up $750 million, and additional investors, of which The Intercept’s sources say HBJ was to be one, would contribute a total of almost $2 billion more, according to a document being shown to investors that was shared with Bloomberg. The investment would have fit a trend of increasing Qatari investment in New York City real estate: Qatar’s sovereign wealth fund, which HBJ used to run, has increased its investment in New York City real estate in recent years, and HBJ has a number of property investments in London and New York.

Anbang’s $400 million, plus $100 million from other investors, would flow to the Kushners, meaning the family would recoup the entirety of their initial $500 million investment, a startling turnaround given that the New York Times’s detailed analysis of the building’s woes found the Kushners’ investment was now essentially worthless.

Crucially, in addition to the cash investment, the deal called for Anbang to take out a $4 billion loan to finance the demolition of the current building and the construction of an 80-story Zaha Hadid-designed residential and retail tower in its place. (The total cost for the project would be around $7.5 billion.) Only a handful of companies in the real estate business, such as Blackstone and Brookfield, are big enough to secure a loan of that size, and to date they appear unwilling to take on the level of scrutiny the deal would bring, never mind offer terms as favorable as Anbang’s. Additionally, any borrower would have to get their loan from somewhere, and one dynamic stymying the deal may be that any bank that underwrote such a loan would face just as much scrutiny for their financial and political judgment as the investor they gave it to.

Anbang pulled out after the deal was criticized as a conflict of interest, given Kushner’s role in the White House. With Anbang, and its ability to secure a $4 billion construction loan, out, the Qatari condition wasn’t met, and the Gulf deal fizzled, according to a source in the region. That chain of events was disputed by a source who said the deal between HBJ and the Kushners wasn’t dead, but on hold as the deal’s mix of loans and equity was reconsidered.

The revelation of the half-billion-dollar deal raises thorny and unprecedented ethical questions. If the deal is not entirely dead, that means Jared Kushner is on the one hand pushing to use the power of American diplomacy to pummel a small nation, while on the other his firm is hoping to extract an extraordinary amount of capital from there for a failing investment. If, however, the deal is entirely dead, the pummeling may be seen as intimidating to other investors on the end of a Kushner Companies pitch.

THE CRISIS DATES to May, when President Trump visited Saudi Arabia and met with regional leaders there, laying his hands on the now-famous orb. The Emir of Qatar met with Saudi King Salman, a high-level Qatari source told The Intercept, and it went well. “The Emir was in Jeddah before the summit, had a meeting with King Salman. King Salman did not bring up any subject about differences with Qatar,” he said. “After the summit, the Saudis and the Emirates, they thought, after signing all these contracts, they can have the upper hand in the region and they don’t want any country not to be in the same line.”

Whatever the reasoning, on June 5, a diplomatic crisis broke out, as Saudi Arabia and the UAE, along with Egypt and Bahrain, downgraded ties with Qatar, citing Qatar’s funding of terrorist organizations. Weeks earlier, the same countries blocked a number Qatari-backed media outlets citing derogatory public comments by the Emir, which Qatar insisted were fabricated and the result of a hack.

On June 6, President Trump took sides, taking credit for the moves by the Gulf nations.

During my recent trip to the Middle East I stated that there can no longer be funding of Radical Ideology. Leaders pointed to Qatar – look!

— Donald J. Trump (@realDonaldTrump) June 6, 2017


So good to see the Saudi Arabia visit with the King and 50 countries already paying off. They said they would take a hard line on funding…

— Donald J. Trump (@realDonaldTrump) June 6, 2017

…extremism, and all reference was pointing to Qatar. Perhaps this will be the beginning of the end to the horror of terrorism!

— Donald J. Trump (@realDonaldTrump) June 6, 2017

On June 9, after Saudi Arabia and the UAE had begun to blockade Qatar, Secretary of State Rex Tillerson sought to calm nerves, calling for mediation and an immediate end to the blockade.

Within hours, Trump, at a White House ceremony, contradicted Tillerson, slamming Qatar again and claiming it had “historically been a funder of terrorism at a very high level.”

Trump’s White House remarks, Tillerson came to believe, had been written by UAE Ambassador Yousef Al-Otaiba and delivered to Trump by Jared Kushner.

The blockade continued. At a private fundraiser in late June, he aimed at Qatar again, this time mocking the pronunciation of the country’s name. “We’re having a dispute with Qatar — we’re supposed to say Qatar. It’s Qatar, they prefer. I prefer that they don’t fund terrorism,” he quipped, according to an audio recording of his speech obtained by The Intercept.

THE KUSHNERS’ PURCHASE of 666 Fifth Avenue for a record-breaking $1.8 billion in 2007 was a capstone to an era marked by high prices and reckless amounts of debt. The Kushners invested $500 million in the building, and took out debt to cover the rest. But even at the height of a bubbling New York real estate market, there were clear signs that the price was too high and the debt was too much. The Kushners paid $1,200 a square foot, twice the previous per square foot record of $600, while records show that even with the building initially almost fully rented out, revenue only covered about two-thirds of the family’s debt costs.

When the financial crisis hit, rents went down, vacancies went up, and the Kushners were short on cash to pay their debts. They sold off the Fifth Avenue retail space for $525 million and used the proceeds to pay off non-mortgage debt on the building. Then, in 2011, the Kushners sold off just under 50 percent of the building’s office space to Vornado, as part of a refinancing deal with the publicly traded real estate giant.

The $1.2 billion interest-only mortgage is due in February 2019. The office space is worth less than its mortgage and “there is no equity value” left in the office section of the building, Jed Reagan of Green Street Advisors told the New York Times in April. (Because they sold the retail space to make payments on other debt tied to the building, the office space is the only part of the tower the Kushners still have a stake in.) As a result, the family’s initial $500 million investment, once heralded as an example of Jared’s emergence as a brash real estate star, has for now effectively been wiped out. A massive refinancing and construction of a new tower that dramatically increases the building’s value is one way to try to get out of that hole.

The Kushners are also looking for loans totaling $250 million to pay off debt used to build an apartment building in Jersey City, Bloomberg first reported in June. The tower, called Trump Bay Street, was financed in part by Chinese investors. Those investments were made through the E5-B visa program, which gives green cards to wealthy foreigners in exchange for investments in the U.S. The family also owes CIT Group $140 million, which it must repay by September. A company spokesman later confirmed to the New York Times that it was indeed seeking the $250 million loan.

The Kushners came under fire in May when the New York Times reported that Jared’s sister Nicole Meyer had pitched her family’s ties as part of a roadshow to raise money for another Jersey City building under the same pay-for-residency visa program. After the report, the family backtracked and said they would not take part in the roadshow going forward.

Meanwhile, the water is rising on the Fifth Avenue investment. And the blockade continues.

Had the Qataris known where things were heading diplomatically, said the source in the region, they’d have happily ponied up the money, even knowing that it was a losing investment. “It would have been much cheaper,” he said.