The UK appears now to be gearing up towards authoring a UN Security Council resolution calling for a ceasefire in Yemen. For years, the UK has been the official ‘penholder’ on Yemen, meaning that it has been up to the UK to table resolutions. It has consistently used this position not only to refuse to issue any resolutions calling for a ceasefire but also to block anyone else’s attempts to do so. The apparent about-turn is a response to last week’s statements from US Secretary of State Mike Pompeo and Defence Secretary James Mattis calling for a ceasefire in Yemen within 30 days, to be followed up with UN-facilitated peace talks. The UK dutifully followed suit shortly afterwards, expressing their support for the initiative. This was somewhat ironic given that minister Alistair Burt, obviously not privy to the seeming about-turn, had just spent the day providing MPs with excruciatingly contorted explanations of why calling for a ceasefire was not a good idea in the circumstances. “Passing a ceasefire resolution risks undercutting the UN envoy’s efforts to reach a political deal and undermining the credibility of the Council” he told the House of Commons at midday; yet within 36 hours, Foreign Secretary Jeremy Hunt was telling Newsnight that the US call for a ceasefire was “an extremely welcome announcement because we have been working towards a cessation of hostilities in Yemen for a long time.” In the parallel universe of British double-speak, it is of course natural thatunrelenting support for what is fast turning into a war of national annihilation gets recast as “working towards a cessation of hostilities”.
Yet this latest call does appear to be at odds with the hitherto existing strategy; it was only in June, after all, when the US and UK torpedoed a Security Council resolution calling for a ceasefire in the face of impending famine. Many commentaries (such as this one in the Telegraph, for example), have suggested that the US is now taking advantage of pressure on Saudi Arabia following the murder of Saudi insider-turned-dissident Khashoggi to push the kingdom towards a less belligerent position in the disastrous Yemen war. The ever-more desperate humanitarian situation is giving the war a bad name and – so the story goes – the US are now keen to end it. David Miliband, former UK foreign secretary and now president of the International Rescue Committee, even called the US announcement “the most significant breakthrough in the war in Yemen for four years”.
Unfortunately, it is likely to prove nothing of the sort. The detail of the announcement makes clear that, far from representing some kind of Damascene change of heart, the ‘call for a ceasefire’ is little more than yet another rebranding exercise, a cynical attempt to whitewash escalating carnage with the rhetoric of peace.
With every passing day, the war in Yemen becomes harder to defend. The airstrike on a bus full of schoolchildren in early August briefly caused international outrage, but it was sadly not exceptional; indeed, at least 55 civilians had been killed during the bombardment of a hospital and fish market just the week before, and the bus itself was but one of over fifty civilian vehiclestargeted by Saudi airstrikes during the first half of this year. For most of the war, around a third of coalition airstrikes have hit civilian sites; but according to the Yemen Data Project, this ratio reached 48% in September.
More grim news emerged on 29th October, when a detailed research project concluded that over five times as many people have met violent deaths in the conflict than previously estimated. For years, the media have consistently claimed a death toll of 10,000, but the true figure is closer to 56,000 since the start of 2016 according to the Armed Conflict Location & Event Data Project, as the earlier estimate only covered deaths reported to official medical centres. The death toll from the start of the bombing campaign until the end of this year is expected to lie between 70,000 and 80,000.
Yet even this number, horrific as it is, is dwarfed by the deaths from the starvation and disease which have been the coalition’s weapon of choice against the population of Houthi-controlled areas. The bombing of water treatment systems, fishing boats, roads and bridges, the naval blockade of the country’s imports, and the coalition regime’s decision to stop paying salaries to health and sanitation workers in Houthi areas two years ago have combined to create mass starvation and the world’s biggest cholera outbreak since the end of WW2. An average of 130 children die of disease and malnutrition every day (Although “they are not starving”, noted a tweet from the Norwegian Refugee Council, “they are being starved”), with around 150,000 people thought to have died from such causes last year alone. And this aspect of the conflict is set to deteriorate exponentially.
On 15th October, the UN’s humanitarian coordinator for Yemen Lise Grande warned that Yemen could face the world’s worst famine for one hundred years if the airstrikes are not stopped, with 12 to 13 million at risk of starvation. Nine days later, the agency’s undersecretary-general for humanitarian affairs Mark Lowcock said that the risk was actually worse than they previously predicted with 14 million close to “pre-famine conditions” – half the country’s population. He noted that the UN was currently only able to feed 8 million of these, although these too would be at risk if the country’s main port Hodeidah – responsible for over 70% of imports – is attacked by the coalition.
Earlier this week, just as Mattis and Pompeo delivered their soothing words, 30,000 troops began massing to launch precisely that attack. The problem for the war’s backers in London, Paris and Washington is how to justify the holocaust this is almost certain to unleash on Yemen’s population in the delusional pursuit of reimposing an impotent and discredited quisling.
The ceasefire announcement, then, is about providing cover for the impending attack. Just at the moment the aid agencies have been warning against its devastating consequences, and calling for an immediate end to the bombing, the ‘ceasefire proposal’ gives the Saudis a month’s free pass to conduct their famine-inducing operation on Hodeidah. Rather than demanding the offensive be halted or delayed, the ‘30-day’ call eggs it on. Nor is the 30-day timeframe any kind of limit on the operation. Pompeo stated that“The time is now for the cessation of hostilities, including missile and UAV strikes from Houthi-controlled areas into the Kingdom of Saudi Arabia and the United Arab Emirates. Subsequently, Coalition air strikes must cease in all populated areas in Yemen”. The term ‘subsequently’ is crucial, implying that the Saudis continued bombardment – including in “populated areas” – would be perfectly justified unless the Houthis had implemented a unilateral ceasefire first. This is little more than a call for unconditional surrender by the Houthis, dressed up as a peace initiative. By the same token, it sets the scene for laying all the blame for any continued fighting at the door of the Houthis
The reality is that the US and UK could end the war tomorrow, simply by threatening to cut off military supplies, intelligence, and training to the Saudis until the airstrikes stop, a point made by Jan Egeland of the Norwegian Refugee Council to a UK Parliamentary Select Committee earlier this week. Yet the US are precisely NOT calling for an end to the bombing, nor threatening to use their leverage to bring it about. Instead, this so-called initiative is yet another cynical PR exercise designed to justify, rather than to reign in, this brutal war.
This piece originally appeared in Middle East Eye.
Trump’s critics warn us that his belligerent policies towards Iran and Turkey are pushing them into Moscow’s arms, even as they seek evidence of ‘Russian collusion’ in all the wrong places. This collusion is not to be found in shady backroom campaign meetings; it is hiding in plain sight.
“He does things the right way” Trump said of Erdogan last month. It shouldn’t have been a surprise; the two men have much in common after all: nationalist tubthumping autocrats with a contempt for constitutional limits on presidential might, who see few problems which cannot be solved through the right combination of willpower and firepower. His comment specifically referred to Erdogan’s ability to ignore his own parliament, and was followed up with a mutually aggrandising fistbump. Yet the budding bromance was to be short-lived.
Days later, Trump entered his now infamous two-hour private meeting with Putin in Helsinki. According to their own account, one of the main items on the agenda was Syria, which for seven years has been the battleground for a proxy war between (among others) the two men’s respective countries. In this war, Turkey and the US were supposed to be on the same side; yet Trump, on Syria as so many issues, has been ambivalent as to US goals in the conflict. The original objective, of course, was to transform Syria – an independent regional power allied to both Iran and Hezbollah – into a failed state on the Iraqi/ Libyan/ Afghan model. Yet the Syrian state – with a level of popular support surprising to those western observers susceptible to their own propaganda – stubbornly refused to be destroyed. Russian intervention helped turn the tide in September 2015, and since then, one victory after another – most notably in Aleppo – has made it clear that not only will the Syrian government survive, but that it will very likely restore its authority nationwide. Most rebel-held cities have now been retaken by the Syrian Arab Army (SAA), whilst the Kurdish YPG – who have always, correctly, feared the US-backed sectarian insurgency far more than they have feared Assad – have entered into negotiations with the government, leading to a growing role for the SAA in YPG-held areas as well. The only major population centre still fully outside government control, then, is Idlib, home to almost 3 million, and largely under the control of Hay’et Tahrir Al Sham, the latest rebrand of Syria’s Al Qaeda franchise.
All the signs are that a government offensive on this last rebel stronghold is imminent, with government forces amassing at the western edge of the province near Jisr al Shughour. Yet one major obstacle remains. Turkey.
Turkish troops are now present on the ground in Idlib at around a dozen ‘observation posts’ set up under the terms of the ‘de-escalation zones’ agreed by Iran, Turkey and Russia at the Astana conference, making a direct assault on the governorate very difficult without risking a major escalation with Turkey – still, despite everything, a NATO member. Furthermore, Turkey wields extensive influence over many of the rebel groups present in Idlib. Back in May, Turkey formed a coalition of around a dozen anti-government militias there under the banner of the ‘National Liberation Front’. Earlier this month, they persuaded two HTS splinters – Nour al-Din al-Zenki, the US-UK-funded group infamous for their livestream beheading of an 11 year old, and Ahrar al-Sham, another Al-Qaeda in all but name and attitude to the west – to sign up. Through this force, Turkey now claims to control up to 100,000 fighters in Idlib, in addition to its own troops on the ground. In other words – Turkey has positioned itself to act as a major spoiler to any forthcoming Idlib operation.
Russia, then, seeks to pressure Turkey into agreeing to, if not a surrender of the province, then at least the removal of its troops, and a negotiated settlement with its NLF proxies – perhaps even a joint operation against HTS by the SAA, the NLF and Russia. This might be acceptable to Turkey – given a guarantee of influence in the aftermath – and Russia, but would be very hard to swallow for the Syrian government, who have no desire to share power with Al Qaeda lite. What Russia needs, then, in order to oversee an Idlib settlement on its own terms, is some kind of leverage over Turkey.
Enter Trump. Trump’s attack on the Turkish currency – already under pressure from the rising dollar due to its huge mountain of debt – precipitated an unprecedented decline in its value, only stemmed by a $15 billion loan from Qatar. But this is likely to only be a temporary solution. Cut out of US markets, and facing further sanctions over its purchases of Iranian oil, what Erdogan needs is a new, more dependable ally than his volatile erstwhile buddy in the White House.
Enter Putin. On August 10th, following the Trump tweet that triggered the lira’s plunge, Erdogan immediately spoke to Putin to discuss “trade and economic cooperation”. 3 days later, Erdogan explained that he had “made advancements in our ties with Russia in accordance to our benefits and interests”. This was followed up with a visit to Ankara by Foreign Minister Lavrov the next day and then, at the end of last week, Turkish Foreign Minister Mevlut Cavusoglu was received in Moscow by Putin himself. Russia had already reaffirmed its commitment to the delivery of its much-feared S-400 missile system by early next year, and made some vague promises to use the lira in its transactions with Turkey at some unspecified point in the future. But nothing new, nothing concrete. Russia was signalling that it was ready to come to Turkey’s aid; but at a price. That price may well be Turkish support for Russian proposals in Idlib, which Putin will be hoping to finalise in the forthcoming Syria summit between Turkey, Russia and Iran next week. Already, the statements coming out of Turkey following the various meetings which have taken place have indicated something of a shift in the Turkish position, with Cavusoglu admitting the presence of “terrorist groups” in Idlib, which need to “neutralised” – “to alleviate the concerns of our Russian counterparts”. At the same time, Putin can use the prospect of Turkish acquiescence to an operation in Idlib as leverage on the Syrian government to accept both its own proposals for recognition of Kurdish autonomy and Israeli demands on the Iranian presence in Syria. Such an outcome would allow both Netanyahu and Trump to claim a much-needed victory in their campaign to ‘rollback’ Iran, whilst simultaneously increasing Iranian and Syrian dependence on Russia. Trump’s attack on the lira, in other words, by throwing Turkey into Moscow’s arms, may have been the key to unlock the final stages of a Syria settlement under Russian tutelage. This is the real Trump-Russia collusion: not in backroom campaign meetings, but hiding in plain sight.
This article was originally published on Middle East Eye
For years, Turkey and Qatar were at the vanguard of the western imperial project in the Middle East. Having had their fingers burnt in Syria, however, they are now refusing to facilitate Washington’s Iran plans – and paying the price.
Trump’s visit to Saudi Arabia in May last year – his first foreign trip as President – was significant for two main reasons: first, the $110 billion arms deal it produced, and secondly, the regional blockade of Qatar it heralded – widely seen as having been greenlighted by Trump during his visit. The impact of the blockade – implemented by Saudi Arabia, the UAE, Bahrain and Egypt – was, however, immediately mitigated by increased trade with Iran and Turkey in particular, limiting its overall impact.
This month’s attack on the Turkish economy, however, has had far more devastating results. Trump’s tweet on Friday August 10th – announcing a doubling of steel and aluminium tariffs on an economy already hit hard by his trade war – sent the Turkish currency into freefall. By the end of the day’s trading, it had lost 16% of its value, reaching a nadir of 7.2 to the dollar two days later; before his tweet, it had never fallen below 6 to the dollar. Trump’s move came on the back of Federal Reserve policies that were already threatening to provoke financial crises in over-indebted emerging markets such as Turkey. These are harsh punishments for countries long considered prime US allies in the region.
A NATO member since 1952 (following Turkish involvement in the Korean war on the side of the US), Turkey has hosted a major US airbase at Incirlik since 1954, essential to US operations in the region, and even housed the US nuclear missiles which triggered the Cuban missile crisis. Incirlik was crucial to the US-UK terror bombing of Iraq in 1991, and, although the Turkish parliament narrowly prevented its use for the 2003 redux, Turkey has been the launchpad for subsequent US strikes both in Iraq and in Afghanistan.
Qatar, meanwhile, is, to this day, run by the family – the al-Thanis – appointed as Britain’s proxies in the nineteenth century. Granted formal independence only in 1971, the country has remained deeply tied into western foreign policy since then. Both its ‘post-independence’ rulers were educated at the UK’s Sandhurst military academy, and it, like Turkey, hosts a major US base, whilst it’s ruling family, like those of the other Gulf monarchies, are dependent on western arms transfers to maintain their power. In 2011, Qatar played a major role in NATO’s Libya operation, providing airstrikes, military training, $400million of funding to insurgent groups, and even ground forces – not to mention the major propaganda role played by the Qatari-owned network Al Jazeera.
Then, in mid-2011, both countries threw themselves headlong into the war to overthrow the Syrian government. Turkish president Erdogan had previously enjoyed relatively warm relations with his Southern neighbour, but at some stage decided that the western-backed rebellion was going to win, and he wanted in on it. Turkey’s collaboration was crucial for the London-Washington Syria project, not only to give it a semblance of regional legitimacy, but more importantly because its 800km border with the country was to be the conduit for the tens of thousands of armed fighters on which the insurgency would depend.
Unwilling – and, following the decimation of their armies in Iraq and Afghanistan, probably unable – to provide the ground forces necessary to destroy the Syrian Arab Army themselves, the ‘regime-change regimes’ of the west relied on states like Qatar and Turkey to act as intermediaries – to facilitate weapons transfers, provide finance and smooth the passage of foreign fighters. Both states, heady with the prospects of the economic and geopolitical rewards that would follow Assad’s removal, and believing their own networks’ fantasies about an imminent collapse, were more than happy to act as accomplices. Over the years that followed, the resources they committed – and the devastation that resulted – were immense. In the case of Turkey, in particular, the spillover would prove disastrous.
Less than three years into the war, the International Crisis Group estimated that Turkey had spent $3billion on the war on Syria. Yet this figure, high as it is, represents a fraction of the true costs involved. A detailed report in Newsweek in 2015 noted the huge increase in military spending following the start of the Syria war, rising from $17 billion per year in 2010, to $22.6 billion in 2014, an increase of 25%. Furthermore, Turkey has been the first port of call for millions of Syrians fleeing the war. This alone had cost the country an estimated $8billion by 2015. Added to this, the report says, are the ‘collateral costs’ resulting from the deterioration of relations with Russia following Turkey’s downing of a Russian jet in 2015, which it estimated could be as high as $3.7 billion due to lost Russian tourism, investment and trade. Trade with Syria, of course, also slumped by “70 percent as a direct effect from the Syrian war,” from $1.8billion worth of exports in 2010 to $497 million two years later. In place of this legitimate trade – much of it in energy resources – however, came a flourishing new illicit trade. This new trade imposed “an additional cost to the Turkish economy: a growing, untaxed, hard-to-control black market economy. To combat its effect on government revenue, Turkey’s Energy Market Regulatory Agency declared an increase in inspections and control mechanisms in Turkey.” Ultimately, however, the government opted to facilitate, rather than attempt to control, this burgeoning black market, issuing in April 2015 “new border regulations that enabled Turkey to open its borders to uncontrolled cash inflow and remittances. According to the new law, travelers no longer had to declare transported currency or profit amounts at the customs booth.” This policy would, noted former governor of Turkey’s central bank Durmus Yilmaz, “attract black money to flow into Turkey.”
“In sum”, concluded the report, “as Turkey incrementally left its prior foreign policy agenda of “Zero Problems with Neighbors” and moved towards an Assad-centric policy, the costs imposed on its economy multiplied. This can be observed directly from the refugee costs, military spending, border security costs and the changing composition of trade volume and quality of liquidity flows in the economy.” Furthermore, “The data suggest…that the more aggressive Turkey gets in its Syria policy in terms of military involvement, the more aggressively these costs rise.” Erdogan’s enthusiastic collaboration with the regime-changers in Washington and London had crippled his country’s economy – not to mention spawning a new era of sectarian militancy in the form of ISIS, which would launch multiple terror attacks within Turkey itself.
Being far removed from the conflict, the Syrian war’s impact on Qatar was not nearly as severe. Nevertheless, Qatar, too, pumped billions into the insurgency: noted the Financial Times in 2013, “The gas-rich state of Qatar has spent as much as $3bn over the past two years supporting the rebellion in Syria, far exceeding any other government” It added that “Qatar has sent the most weapons deliveries to Syria, with more than 70 military cargo flights into neighbouring Turkey between April 2012 and March this year,” showing clearly the division of labour between Qatari finance and Turkish logistics.
Turkey and Qatar have thus put themselves right at the forefront of western efforts to overthrow the Syrian state. To date, however – other than an ever-growing pile of burnt Syrian corpses and a huge hole in their own finances – they have nothing to show for it.
In hindsight, the Turkish downing of a Russian jet in November 2015 can be seen as a last-ditch attempt to test the resolve, not of Russia, but of the west. Erdogan wanted to know whether or not the US was going to put their money where their mouth was and put some decisive muscle into the conflict. In the escalation that followed the attack, Turkey immediately put forward plans for a ‘no fly zone’ – euphemism for the sort of all-out aerial bombardment that befell Libya. But nothing came of it. That was the moment Turkey realised the west were not about to commit anything like the resources necessary to actually bring about victory. Assad was here to stay. Turkey would have to deal with that. And that meant dealing with Russia. The slow realignment of Turkish foreign policy had begun. And earlier this year, with tails no doubt firmly between their legs, even Qatar re-established relations with the Syrian government.
So when Trump came knocking for buyers for the west’s next brilliant idea – war on Iran, beginning with a brutal economic siege – neither Turkey nor Qatar were exactly chomping at the bit to sign up. The suggestion was even less appealing than the disastrous Syria gambit, targeting an even more important trading partner, and with even less chance of influence over some mythical future government. Qatar shares a major gas field – South Pars – with Iran, and is dependent on Iran for accessing eastern energy markets, whilst Iran is the major source of Turkish energy imports. Following Syria, neither country has much nose left to cut off, even if they had wanted to spite their own face. Trump’s merciless attack on their economies is yet another sign of the increasing US inability to bend once-pliable clients to its will. For all his bluster, it is a clear admission of weakness and failure.
This piece was originally published on RT.com
Even by the depraved standards of the US-UK-Saudi-UAE aggression against Yemen, yesterday’s bombing of a school bus was a new low. The bus had stopped at a market whilst taking the children back to school from a picnic when it was targeted, according to Save the Children. Health officials have informed the world that the strike killed 47 people with 77 more injured, but that that number was likely to rise. Most of those victims, tweeted the Red Cross, were less than ten years old. Following the attack, Frank McManus, Yemen country director for the International Red Cross, whose workers are treated the wounded, pleaded that: “Today should be the day the world wakes up to the atrocities going on in Yemen … a bus full of school children cannot be viewed as mere collateral damage. Even wars have rules, but rules without consequences mean nothing.”
It is hard to see how the world will wake up, however, when western media remains so committed to its refusal to give anything like adequate coverage to the ongoing aggression. You might have thought that the targeted bombing of a bus full of children parked in a market far from any military activity, by forces enjoying full military, diplomatic and strategic support from the UK, would make headlines. Yet this is not the case. Take the Guardian, for example, supposedly a bastion of liberal values and humanitarian concern. Their report on the incident went online shortly before 7pm last night. Yet this morning, it does not feature amongst their 13 headline stories, which include such gripping items as “the chips are down in Belgium at heatwave hits supply of fries”. Click on the ‘world news’ section, and Yemen is not even amongst the 11 headlines there, bumped by earth-shattering stories such as “New Zealand – Jacinda Ardern says country will ban plastic bags”. Only if you specifically click on the Middle East section would you find the story – fourth of that section’s six headlines, just behind “Mauritian presidential hopeful arrested” and “Looted Iraqi antiquities return home”.
The Independent, now online only and perhaps, you might have thought, less subject to the pressure from advertisers that drives some of the self-censorship of its loss-leading print-edition cousins, is little different. Yemen was among neither its eight ‘top stories’ this morning, which included headlines such as “British campers flee as flash floods batter France”, nor the eight pieces in its ‘more stories’ section, which included items titled “summer not over yet, despite thunderstorms and heavy rain” and “Pochettino blames Brexit for Spurs’ failure to sign any new players”
Of course, in a sense, these outlets are entirely correct not to consider the story as news – for there is nothing really new about yesterday’s atrocity. Indeed, only last week, an airstrike on a market and hospital killed at least 60 people; such slaughter has become routine. Even the killing of children is standard practice: in fact, the 29 children killed in the bus bombing yesterday are but a fraction of the 130 children killed in Yemen every day by the famine and disease which the aggression has brought to the country.
Indeed, alongside the straightforward lack of coverage, the downplaying of the level of killing in Yemen constitutes a second, more subtle, form of media blackout. Somewhere along the line, someone decided that 10,000 was the death toll to be forever associated with the Yemen war, and this number has appeared in virtually every article on the subject for years. In truth, this figure is a massive underestimate, given that at least150,000 are believed to have died from starvation and preventable diseases last year alone, a direct consequence of the aggression on Yemen, the blockade of its ports, and the targeting of its civilian and agricultural infrastructure. Thus the ‘death toll’ endlessly repeated in the media – and shamefully, this often includes alternative media – is in truth but a tiny fraction of the true level of suffering being rained down on that country by the west and its proxies.
Another form of blackout is the presentation of the conflict as a civil war. There was a civil war in Yemen, the endgame of which was reached when the Ansar Allah movement captured the capital city and President Hadi fled the country. Since then, beginning in March 2015, what has been occurring is a foreign aggression against the country. In the words of Professor Isa Blumi, what is ”Strategically left out of the discussion” here “are those outside facilitators of empire whose war has created new opportunities to plunder Yemen’s resources. Rather than seeing the heavy hand of empire, the outsider is expected to believe the media and think tank experts that it is Yemenis’ own pathologies, their social and economic backwardness, that leave them susceptible to violence and thus ‘civil war’. The ‘they are at war with themselves’ trope continuously repeated in various media and academic circles ultimately obfuscates who are guilty, laying blame on eighty percent of a country’s population currently being starved to death”.
Even when foreign aggression is admitted, however, the agency for this is often misrepresented. Thus a fourth form of blackout consists of presenting the war as somehow an independent initiative of the Saudis, which the west are, at best, merely ‘backing’ or ‘going along with’ for the sake of arms sales or oil supplies. This is truly putting the cart before the horse. The truth is thatthis is a US-UK war, planned in the corridors of Whitehall and Washington, but executed by their faithful Gulf proxies. We know now, from emails leaked by Wikileakslast year, that even Crown Prince Salman himself wants out of the war. But he knows that his family’s grip on power is utterly dependent on western support. And the price of that support is that their foreign policy is not their own. The deal, stretching back to the days of the British empire, is that the west provide security to the al-Saud family – but in return, the al-Sauds relinquish their foreign policy to the west. And right now, the west’s order of the day is to destroy Yemen.
Make no mistake, the war on Yemen is a UK-US war, and to present it as anything else is a dangerous misrepresentation of reality which attempts to lay the blame solely at the door of their oriental fall guys. Of course, it plays very well in countries like Britain, still drenched in its colonial and orientalist mentality, to shift the blame for Yemen’s genocide onto crooked and mischievous Arabs. Groups like Stop the War, I am sorry to say, tend to play into this narrative, portraying the recent visit to Britain by Crown Prince Bin Salman, for example, in terms of an otherwise pristine Britain sullying itself by association with a bloody Arab ‘despot’. This is a complete inversion of reality; the truth, of course, is that the Saudis’ greatest crime is their collaboration with the genocidal ruling class in Britain and the USA.
But there is also another form of media blackout on Yemen, one which even the alternative media (and here I would have to include some of my own past writings on the conflict) often succumbs to. This is the presentation of Yemenis as simply passive victims, lacking all agency, the hapless recipients of bombing raids and starvation policies. In fact, Yemen’s struggle is not essentially a story of victimhood, but of resistance. When we lament three years of Yemen’s bombardment, we should not forget that we are also celebrating three years of truly extraordinary and heroic resistance. To have survived these punishing raids for this long should demonstrate beyond all doubt that the Ansar Allah movement, against whom this devastating war is being waged, is a genuinely popular and representative movement – for if it were not, it would have collapsed years ago. The constant media refrain of Houthis being merely Iranian proxies fighting the ‘legitimate government’ turns reality square on its head. Legitimacy does not come from being ordained by the priesthood of global capital, as Hadi was, but from the kind of popular support that alone allows a movement to face down a ten-country coalition supported by the most powerful militaries in the world.
And where does the Ansar Allah movement’s popularity come from? It comes from putting itself at the forefront of resistance to the western project of selling off Yemen, opening up Yemen’s resources to looting by western financial corporations, and turning over Yemen’s political system to Saudi stooges. Indeed, in so doing, Ansar Allah are merely the latest incarnation of a spirit of Yemeni resistance to western capitalism going back over 100 years. It is this spirit which the current bombardment is trying – in an act of the most brutal futility – to crush. It is this spirit that the media desperately want to black out. And it is this spirit that will ultimately see empire, and all its stooges and apologists, crumble into dust.
A version of this article originally appeared on Middle East Eye
Trump is using everything he’s got to wage economic war on Iran. His problem is that ‘everything he’s got’ is not nearly enough, as the virtual monopoly power once wielded by the US has long since evaporated.
Last week, a senior State Department official announced the US’ intention to cut Iranian oil exports “to zero” by November 4th this year, by threatening to impose sanctions on any company still trading beyond that date. Brian Hook, director of policy planning at the State Department, told reporters on July 2nd that “Our goal is to increase pressure on the Iranian regime by reducing to zero its revenue on crude oil sales”.
Hitherto, experts had predicted US sanctions would see a reduction of around 500,000 barrels per day (bpd) by the end of the year – barely one fifth of the country’s current export of 2.4 million bpd. Even the sanctions that preceded the 2015 nuclear deal – which, unlike today’s unilateral effort, were supported by a broad alliance of world powers, including Russia and China – only succeeded in removing half Iran’s oil (1.2m bdp) from the market.
Hook reassured the world that “We are confident there is sufficient global spare oil capacity”, claiming Saudi Arabia alone could produce an additional 2 million bpd. Saudi Arabia and Russia have already agreed to increase production by 1 million bpd reversing the production quotas imposed in the wake of the oil price slump in 2016.
This determination to destroy Iran by any means necessary has, of course, been the Trump administration’s signature foreign policy since day one, with almost every member of his team harbouring a long-held and well documented vendetta against the Islamic Republic. What is new with Trump, however, is not this determination as such – let’s not forget that Iran has been on the official Pentagon hitlist since at least 2001 – as the means used to pursue it. As I argued in 2014, the nuclear deal was not, on the part of the west, a genuine rapprochement so much as a long term programme of western infiltration, based on the ‘Libya model’, aimed at building a pro-imperialist fifth column within the Iranian state in order to prepare the ground for ‘regime change’ in the future. The Trump team, of course, has no patience for the long game, and want to simply cut to the chase. The reason for this obsession with destroying Iran – shared by all factions of the western ruling class, despite their differences over means – is obvious: Iran’s very existence as an independent state threatens imperial control of the region – which in turns underpins both US military power and the global role of the dollar. And as South-South cooperation continues to develop, this threat grows every day, whilst the means to diminish it are reduced by the same measure.
At the same time, the US military encirclement of China – begun in earnest as Obama’s ‘pivot to Asia’, but, like so much else, undergoing major escalation under Trump – is intimately linked to a policy of cutting off China from its suppliers. In this sense, a policy of ‘isolating’ of Iran is aimed at isolating China also, as China is the largest market for Iranian crude.
Trump’s policy, however, is likely to get few buyers. Pepe Escobar has explained the likely response to Trump’s plans from each of Iran’s top customers: “India will buy Iranian oil with rupees. China also will be totally impervious to the Trump administration’s command. Sinopec, for instance, badly needs Iranian oil for new refineries in assorted Chinese provinces, and won’t stop buying. Turkey’s Economy Minister Nihat Zeybekci has been blunt: “The decisions taken by the United States on this issue are not binding for us.” He added that: “We recognize no other [country’s] interests other than our own.” Iran is Turkey’s number-one oil supplier, accounting for almost 50% of total imports. Russia won’t back down from its intention to invest $50 billion in Iran’s energy infrastructure.. And Iraq won’t abandon strategic energy cooperation with Iran. Supply chains rule; Baghdad sends oil from Kirkuk to a refinery in Kermanshah in Iran, and gets refined Iranian oil for southern Iraq.”
With European companies likely to be more nervous about insubordination to US diktat, this merely leaves more tantalising investments open to Russian and Chinese companies. As Philip K. Verleger noted, “It’s a huge opportunity for China and Russia to cement relationships with Iran”.
At the same time, all this activity and uncertainty is bound to push oil prices higher, meaning that any reductions in export quantities may well be compensated by increased revenues.
Trump’s attempts to persuade the rest of the world to cut off its nose to spite its face, then, are likely to all on deaf ears. It is in this light that Trump’s igniting of a global trade war must be seen.
At midnight on July 5th, US tariffs on $34billion worth of Chinese imports went into effect, at a rate of 25%. Trump told reporters that tariffs on a further $16 billion worth were likely to follow in two weeks, fulfilling a pledge made in April to slap tariffs on 1300 products totalling $50 billion annually. These tariffs were designed to target the Chinese aerospace, tech and machinery industries, as well as medical equipment, medicine and educational material. The final total, however, he added, could eventually reach $550 billion – “a figure”, noted Industry Week, “that exceeds all of U.S. goods imports from China in 2017”. These China-specific tariffs follow tariffs on steel (25%) and aluminium (10%) imports imposed on the EU, Mexico and Canada four days earlier.
According to Fox Business, Canada stands to lose around $2billion per year as a result of these tariffs, with Brazil, Russia, China and South Korea each set to lose at least $500 million annually.
But this may be precisely the point: not only to ‘bring jobs back to the US’, but also to create new forms of leverage to be used against rivals and allies (and is there really a distinction between the two anyway these days?) alike. So far, of course, Trump has famously refused to offer waivers to his allies. But with Trump, nothing is forever – everything is leverage, to be played and bartered as seen fit. Could it be, then, that waivers may yet be offered to countries who manage to wean themselves off Iranian oil by the November deadline? And even if not, the very willingness to use trade as a weapon so openly and brazenly is a reminder that there may be further punishments on the way for those who do not toe the line on the strangulation of Iran. After all, as Louis Kuijs, chief economist at Oxford Economics, has pointed out, this ‘new era’ has only just begun: “Clearly the first salvos have been exchanged,” he said, “and in that sense, the trade war has started. There is no obvious end to this”.
Nevertheless, Trump’s bark may yet be well worse than his bite. For on thing, the counter-measures employed by the Chinese – a reciprocal 25% tariff on $50billion of US goods – will hit the US hard. One product subject to the new tariff, for example, is soybeans. China is the market for 25% of all soybeans grown in the US. Grant Kimberley, a soybean farmer with the Iowa Soybean Association, estimates that this tariff alone could lead to a 70% drop in exports.
But even, even apart from the Chinese counter-measures, the US-imposed tariffs themselves are likely to hurt the US as much as China. A report on NPR suggests that “for now, the blows are threatening to land hardest on non-Chinese companies like New Jersey-based Snow Joe/Sun Joe”, which – like so many other US companies, relies on Chinese imports for crucial parts of its supply chain. And in the end, of course, all of these increased costs will be passed on to the US consumer, directly depressing their real wages.
For China, however, the impact is likely to be – in the words of Ethan Harris, head of economic research at Bank of America Merrill Lynch – “quite small”. Industry Week noted that whilst “In the past, the U.S. used its economic clout to win trade skirmishes with developing countries… China, whose economy has grown tenfold since it joined the World Trade Organization in 2001, poses a much more formidable adversary.” James Boughton, a senior fellow at the Centre for International Governance Innovation in Waterloo, Ontario, told the site that “The dynamic is different from anything we’ve seen. China has an ability to ride out this kind of pressure, to weather the storm, that a lot of countries didn’t have in the past.”
Indeed, Trump has already been forced into retreat in some areas, given the likely repercussions. Ian Bremmer, president of the Eurasia Group consultancy, told CBS that “Trump backed off a couple weeks ago on implementing what would have been significant measures against them. You’re familiar with the Chinese telecom firm ZTE. They were going to be made bankrupt by White House regulations what were being put in place. Trump himself intervened with a tweet saying, we don’t want to lose all of those Chinese jobs… [Trump] knows that China can hit back really hard and they can hit back in a targeted way against red states, against American farmers. So I would be very surprised if we saw significant escalation as opposed to significant rhetoric before elections in the U.S. in November, which is what we’re really talking about here.” Other possible Chinese retaliatory measures include limits on exports of rare-earth metals, essential for technologies such as smartphones, and of course the zero-option of dumping its holdings of US treasuries (although this would not be without serious pain to itself of course).
So the idea that trade war will somehow pressure China (and others) to dump Iran seems ultimately fanciful. The process of ‘delinking’ has already gone too far. China is already Iran’s biggest trading partner, and – with Chinese tariffs on US oil looming – is more likely to increase Iranian imports to replace that no longer coming from the US rather than vice versa. Iran already sells its oil to China in yuan, rather than US dollars, meaning that the entire US-controlled financial system is completely circumvented for the countries’ bilateral trade, and therefore outside the control of US-imposed financial sanctions. Looking forward, Iran is set to play a crucial role in the development of China’s mega Belt and Road Initiative, with a high speed railway planned to provide sea access to landlocked central Asia. And with French oil giant Total’s planned investment in the massive South Pars oil field in jeopardy, the contract is likely to now go to a Chinese company.
Economics professor Danny Quah noted back in 2009 that the dependence of China on US markets tended to be greatly overestimated in the west. By 2006, only 20% of Chinese exports were to the USA, with a far higher proportion going elsewhere in East Asia. In 2013, the US was not even the largest single customer for Chinese goods (it came second to Hong Kong). By 2o15, only 18% of Chinese exports were to the US; with almost half (48.5%) going elsewhere in Asia, 19.9% to Europe, 4.2% to Latin America, and 4.1% to Africa. In other words, the global South accounted for more Chinese exports than US and Europe combined. And, as is becoming clearer by the day, US and Europe are not combined.
According to the CIA’s world factbook, Chinese exports in total represent just under 20% of GDP. If we do the maths, then – 20% of 20% – it turns out that just 4% of Chinese GDP comes from exports to the US. Significant, but hardly the economic gun to the head that Trump seems to believe.
The days when loss of market access to the US meant oblivion for countries like China are long gone. The future now lies in South-South cooperation precisely along the lines of the multibillion Belt and Road Initiative. The US government understand that, and their attempts to simultaneously sabotage both China and Iran are last-ditch attempts to prevent the inevitable – further delinking, and a global economy in which the US is becoming increasingly peripheral. But the truth is, this effort is already too late.
This article originally appeared on RT.com
Trump’s attack on the Turkish lira, combined with recent Federal Reserve moves to choke off dollar supply, are pushing the world towards a rerun of the 1997 currency crisis. This may well be the whole point.
Last Friday, Donald Trump announced new sanctions on Turkey – comprising a doubling of the steel and aluminium tariffs he had introduced earlier this year. Turkey’s currency was already struggling, but these new sanctions “are the straw that broke the camel’s back”, commented Edward Park of the UK investment management firm Brooks Macdonald. The same day, the Turkish lira fell to more than 6 to the dollar, the first time it had ever done so, hitting a low point of 7.21 to the dollar on Sunday. Following Turkish caps on currency swaps, it slightly regained some of its lost value, and was trading at 6.12 by Wednesday, still way below the 4.75 to the dollar it was worth last week. Whilst the Turkish move has had some effect, this should not be overstated: simply banning the trading of lira above certain limits, which is effectively what Turkey has done, is hardly a sustainable means of revalorising the currency; andaccording to the FT, investors “are still ratcheting up bets against Turkey in other ways, such as through credit default swaps that pay out in the case of a debt default”. Turkish bank shares now stand at their lowest level since 2003.
Underlying the currency’s vulnerability are the country’s massive dollar debts. Turkish companies now owe almost $300 billion in foreign-denominated debt, a figure which stands at over half its GDP. The question is – how did this happen, and why has it suddenlynow become a problem?
During the era of Quantitative Easing, the US Federal Reserve flooded US financial institutions with $3.5trillion in new dollars, much of which poured into so-called ‘emerging markets’ such as Turkey. So long as the music kept playing, this was fine – near-zero interest rates, combined with a weak dollar, made these debts affordable. But since the Federal Reserve ended its programme of QE last year – and then started to reverse it, selling off the financial assets it had purchased (and thus effectively taking dollars out of the financial system) – the dollar’s value has started to rise again, making debt repayments less affordable. This appreciation of the dollar has been compounded by two successive interest rate rises by the Reserve; but it has also been compounded by Trump’s actions. Paradoxically, Trump’s trade wars have led to a further rise in the dollar, as investors have viewed it as a ‘safe haven’ compared to other currencies deemed less able to withstand the unpredictable turbulence he has unleashed. Even the yen and the Swiss franc, traditionally viewed as ‘good as gold’ have weakened against the dollar – as, indeed, has gold itself. As Aly-Khan Satchu, financial analyst at Rich Management, has put it the “US dollar has been weaponised – either deliberately or by design” (is there a difference?), adding that the “dollar is basically knee-capping countries”, warning that other countries will face the same treatment “if they continue to pursue the policies that Erdogan is seeking to pursue”.
Thus Turkey has been hit by a quadruple whammy by the US – interest rate hikes and the choking off of dollars from the Fed; tariffs and sanctions from Trump. The result is a loss in the lira’s value of almost 40% since the start of the year.
And the effects are already being felt far beyond Turkey’s borders; the South African rand fell to a two-year low on Monday, and the Indian rupee, Mexican peso and Indonesian rupiah have all been hard hit. This is unsurprising, as the ballooning of dollar-denominated debts – from $2trillion 15 years ago to $9trillion today, largely in the global South – combined with the reversal of QE was a crisis waiting to happen. All the conditions which prefigured the 1997 East Asian currency crisis are now effectively in place. All that’s needed is a push – which is exactly what Trump has just given.
This is textbook stuff – or should be, if economics textbooks bore any relation to reality (which they don’t). The last ten years are virtually an exact replay of the decade or so running up to the 1997 crisis. Whilst the 1985 ‘Plaza Accord’ dollar devaluation was not exactly Quantitative Easing, it had the same intent and results – a flood of cheap money and dollar debt, and therefore growing global dependence on the dollar and vulnerability to US monetary and economic policy. This vulnerability was then effectively ‘cashed in’ with the ‘reverse Plaza accord’ ten years later, which, as with the current reversal of QE, choked off credit and ramped up interest rates, making markets more jumpy and bankruptcies more likely. In the end, the trigger was the collapse of the baht – the currency of a country (Thailand) with a GDP half that of Turkey – which spiralled into a crisis that ultimately spread across all of Asia, sabotaging the continent’s development and allowing US corporations to buy up some of the most advanced industrial plant in the world for a fraction of its value.
It is not hard, then, to see why Trump and the Fed might well wish to trigger such a crisis today. The more the currencies of dollar-indebted countries slide, the more real goods and services they have to pay in tribute to the US to service the same paper-dollar debts – whilst those who cannot keep up will be gobbled up for pennies on the dollar. Yet beyond these purely economic gains lies also the geopolitical imperative – to maintain and extend US domination by scuppering its rivals. Trump is, after all, about nothing if not the conversion of all possible means of power into leverage to obliterate his opponents. Forcing one country after another to the brink of bankruptcy – and therefore to the IMF for a bailout – is a means of cashing in the dollar-dependency built up over the past decade into raw power. One can easily imagine the demands the US might make in return for its support in securing an IMF bailout – end oil imports from Iran, discontinue involvement with China’s Belt and Road Initiative… the potential is vast. Already direct threats are being made against Turkey about ‘what it needs to do’ to ‘reassure the markets’ – the Times on Tuesday, for example, demanding that “Erdogan should end his spat with the West if he wants to avert a deeper crisis…his course of action should be clear: he should raise interest rates [that is, promise a bigger cut of the Turkish economy to international currency speculators], heed competent economists, explicitly guarantee the independence of the central bank [that is, remove it from democratic oversight], and make up with President Trump” – as, after all, “US support will be needed if the IMF of World Bank is to step in”. Indeed, the targeting of Turkey may well be a response to Erdogan’s insubordination in relation to Iran: noted Robert Fisk this week, “Erdogan is helping Iran to dodge US sanctions which were imposed after Trump flagrantly tore up the 2015 nuclear agreement, and – in a decision demonstrating the cowardly response of the EU’s own oil conglomerates to Trump’s insanity – has announced that he will continue to import Iranian oil. Thus will Washington’s further threat of increased oil sanctions against Iran be blunted.” Trump may well hope – as I argued recently – that tariffs can serve as a weapon to bring recalcitrant states back in line with his Iran policy.
Indeed, it is here that the false dichotomy between the ‘globalists’ and the ‘economic nationalists’ in the Trump White House – and the country at large – is, once again, exposed. When it comes to pushing the global South into bankruptcy, their interests are perfectly aligned. However much Goldman Sachs’ press releases may cry wolf about Trump’s tariffs, the reality is that the trade war is the icing on the cake of the Fed’s own policy of squeezing the ‘emerging markets’. Indeed, Wall st depends on precisely the kind of financial instability which Trump’s trade wars have triggered. As Peter Gowan has noted, “the US economy depends…upon constantly reproduced international monetary and financial turbulence” – while Wall St in particular “depends upon chaotic instabilities in ‘emerging market’ financial systems.” But by draping these actions in the flag, and parading them alongside a chorus of pseudo-shock from the ‘globalists’, their true nature is obscured. The global South now stands on the precipice – with ‘establishment liberals’ and ‘nationalist insurgents’ alike lining up to give them a shove.
An earlier version of this article originally appeared on RT.com