Best of the Week
Most Popular
1. Will Iran Kill the PetroDollar? - Marin Katusa
2. Tail Events, Isolation, New Normal Of Hyper Monetary Inflation - Jim_Willie_CB
3. Kodak's Former Moment, A Lesson for You, Me and America - Gary_North
4.The Five Stages of Collapse and the Coming Paradigm Shift in Silver - Steve_St_Angelo
5. UK Recession 2012 Certain as Bank of England Prepares to Ramp Up Money Printing Presses - Nadeem_Walayat
6. HMRC Extends Tax Deadline by 2Days for Self Assessment Online Filing - Nadeem_Walayat
7. Gold GLD ETF Investors Mass Exodus - Zeal_LLC
8. Credit Crisis Perfect Storm, Robert Prechter Discusses What's Backing Your Dollars - Robert Prechter
9. Best Cash ISA 2012 to Reduce Stealth Inflation Theft of Value of Savings - Nadeem_Walayat
10.Financial Markets 2012, When Leverage Fails - Ty_Andros
Last 5 Days Analysis
Ben Bernanke is Every Gold Bug's Best Friend - 9th Feb 12
Apple Stock Heading Over $600 on iTV and iPad3 - 9th Feb 12
Money Market Funds Are in the Fight of Their Lives - 9th Feb 12
China's Economic Rebalancing Should Be Good for Gold Demand - 9th Feb 12
Waiting to Pounce on Gold and Silver Profits - 9th Feb 12
Learn How to Apply Fibonacci Retracements to Your Stock Index Trading - 8th Feb 12
Do Low Interest Rates Power Stock Markets Higher? - 8th Feb 12
SILVER: The Illegitimate Child Of The Commodities Family - 8th Feb 12
A New Reason Gold Stocks Will Soar - 8th Feb 12
The Deception of 0% Interest Rates, High Costs and Capital Destruction - 8th Feb 12
Bring Down the New World Order with Free Market Education - 8th Feb 12
Gold Increases In Value During Inflation or Deflation Scenarios - 8th Feb 12
Gold Holds Steady as U.S. Dollar Hits 2-Month Low - 8th Feb 12
Markets Risk Train Chugs Along, Overbought Does Not Mean a Correction is Coming - 8th Feb 12
Banking, U.S. Housing Market and Mortgages - 8th Feb 12
Has Zero Interest Rate Policy Held Back Economic Recovery? - 8th Feb 12
Graphite and Rare Earth Metals for the 21st Century - 8th Feb 12
Gold Odysseus Journey Continues! - 8th Feb 12
The Fed Resumes Printing Money to Monetize U.S. Government Debt - 7th Feb 12
Timing the Market: Predicting When the FED Will Act Next (Feb 12) - 7th Feb 12
U.S. War With Iran? - 7th Feb 12
Abandoning the U.S. Dollar for Gold - 7th Feb 12
Financial Crisis American Gridlock, Why The “Left” And The “Right” Are Both Wrong - 7th Feb 12
The Fed is Engineering Barack Obama’s Re-Election Campaign - 7th Feb 12
Finding Fundamentals Key to Gold Stocks Investing - 7th Feb 12
US Debt Will Explode Without Changes - 7th Feb 12
Gold Compared to Past Bubbles - 7th Feb 12
Illusion Of Economic Recovery – Feelings & Facts - 7th Feb 12
In the Gold Bullring - 7th Feb 12
This Precious Metal Could Rise 125% Over the Next 10 Months - 6th Feb 12
Washington Heading for War on Syria - 6th Feb 12
Gold "Rollercoaster" Heads Yet Lower as Greece Hits "Crunch Time for Bankruptcy" - 6th Feb 12
Did Friday's Gold Price Action Signal a Stock Market Top? - 6th Feb 12
Monday Financial Markets Madness – What’s This Greece Thing? - 6th Feb 12
Stock Market Investors Dangerous Times Ahead, Will Impact Gold - 6th Feb 12
Gold, Stocks and Euro Fall As Possible Greek Debt Default Looms - 6th Feb 12
Bond Investors Pour into Emerging Market Debt in Hunt for Higher Yields - 6th Feb 12
New Spy Technology Could Be Worth Billions - 6th Feb 12
U.S. Fraudulent Election Year Unemployment Data, Lies, Lies, More and Bigger Lies - 6th Feb 12
Double Liability for Bank Shareholders, Officers and Directors - 6th Feb 12
Stock Market Next Short-term Top in Sight - 6th Feb 12
U.S. Home Foreclosures and Shadow Banking: Why All the "Robo-signing"? - 5th Feb 12
Look at What 'Worked' in the Great Depression - 5th Feb 12
Putting Good U.S. Employment Numbers in Perspective, College Education Isn’t Enough - 5th Feb 12
Stock Market Weekend Update - 5th Feb 12
The Doomsday Machine - 4th Feb 12
Are US Treasury Bond Markets a Sell? - 4th Feb 12
Obama’s Refinancing Swindle, Banks Want to Dump Millions of Risky Mortgages Onto FHA - 4th Feb 12
The Euro Zone and the Crisis of Sovereign Debt - 4th Feb 12
Is the U.S. 'Decoupling' From the European Debt Crisis? - 4th Feb 12
The Crucial Pillar of the New World Order - 4th Feb 12
Gold Junior Mining Stocks Poised to Rebound - 4th Feb 12
U.S. January Employment Situation Shows Widespread Improvement, but Short of Full Employment Mandate - 4th Feb 12
U.S. Non Farm Payrolls Interesting Market Divergences - 4th Feb 12
Gold and Silver Mining Stocks Tops Might Be Just Around the Corner - 4th Feb 12
Critical Materials for Critical Technologies - 3rd Feb 12
Junior Gold Mining Stock - 3rd Feb 12
SOPA, PIPA, The State of US Surveillance - 3rd Feb 12
Essential Investor Preparations for The Big Crisis - 3rd Feb 12
U.S. Jobs, El-Erian U.S. Structural Issues Aren't Being Dealt With - 3rd Feb 12
What Every U.S. Investor Should Know About Inflation - 3rd Feb 12
U.S. Mint Gold Coin Sales Return to Fundamental Driven Demand - 3rd Feb 12
Gold Bull Market Bigger than Ever - 3rd Feb 12
Banking Crisis 2012 "Robo-Signing" of Foreclosure Affidavits Just Tip of Iceberg - 3rd Feb 12
Stock and Financial Markets Crash is Coming, Key Signs of Reversal - 3rd Feb 12
Real U.S. Economic Picture: "There is No Recovery" - 3rd Feb 12
Poland Gives Green Light to Massive Natural Gas Fracking Efforts - 3rd Feb 12
Where to Invest 2012 and What to Avoid - 2nd Feb 12
Liquid Natural Gas Stocks Are Set to Take Off - 2nd Feb 12
Godzilla Will Come Out of Tokyo Bay Before Japan Economy and Stock Market Rebounds - 2nd Feb 12
Gold Challenges Resistance at $1,750/oz – Technicals and Fundamentals Remain Very Positive - 2nd Feb 12
German Central Bailing Out Europe - 2nd Feb 12
In the Wake of Davos: "Strong Economic Medicine" for the European Union - 2nd Feb 12
The American Economy is "Dead": The Illusion of Economic Recovery - 2nd Feb 12
Irish People Bailout of Bond Holders, Vincent Browne v The European Central Bank Video - 2nd Feb 12
How Far Will Debt Deleveraging Go? How Much LSD Can an Elephant Take? - 2nd Feb 12
Great Deals on Gold and Silver 2012 - 2nd Feb 12

Free Instant Analysis

Free Instant Technical Analysis


Market Oracle FREE Newsletter

How You Can Identify Stock Market Turning Points Using Fibonacci

Russia Takes Strategic Advantage From America's War Against Islamic World

Politics / New Cold War Sep 02, 2008 - 07:13 PM

By: STRATFOR

Politics Best Financial Markets Analysis ArticleThe United States has been fighting a war in the Islamic world since 2001. Its main theaters of operation are in Afghanistan and Iraq, but its politico-military focus spreads throughout the Islamic world, from Mindanao to Morocco. The situation on Aug. 7, 2008, was as follows:


  1. The war in Iraq was moving toward an acceptable but not optimal solution. The government in Baghdad was not pro-American, but neither was it an Iranian puppet, and that was the best that could be hoped for. The United States anticipated pulling out troops, but not in a disorderly fashion.
  2. The war in Afghanistan was deteriorating for the United States and NATO forces. The Taliban was increasingly effective, and large areas of the country were falling to its control. Force in Afghanistan was insufficient, and any troops withdrawn from Iraq would have to be deployed to Afghanistan to stabilize the situation. Political conditions in neighboring Pakistan were deteriorating, and that deterioration inevitably affected Afghanistan.
  3. The United States had been locked in a confrontation with Iran over its nuclear program , demanding that Tehran halt enrichment of uranium or face U.S. action. The United States had assembled a group of six countries (the permanent members of the U.N. Security Council plus Germany) that agreed with the U.S. goal, was engaged in negotiations with Iran, and had agreed at some point to impose sanctions on Iran if Tehran failed to comply. The United States was also leaking stories about impending air attacks on Iran by Israel or the United States if Tehran didn't abandon its enrichment program. The United States had the implicit agreement of the group of six not to sell arms to Tehran, creating a real sense of isolation in Iran.
Related Special Topic Page

In short, the United States remained heavily committed to a region stretching from Iraq to Pakistan, with main force committed to Iraq and Afghanistan, and the possibility of commitments to Pakistan ( and above all to Iran ) on the table. U.S. ground forces were stretched to the limit, and U.S. airpower, naval and land-based forces had to stand by for the possibility of an air campaign in Iran — regardless of whether the U.S. planned an attack, since the credibility of a bluff depended on the availability of force.

The situation in this region actually was improving, but the United States had to remain committed there. It was therefore no accident that the Russians invaded Georgia on Aug. 8 following a Georgian attack on South Ossetia. Forgetting the details of who did what to whom, the United States had created a massive window of opportunity for the Russians: For the foreseeable future, the United States had no significant forces to spare to deploy elsewhere in the world, nor the ability to sustain them in extended combat. Moreover, the United States was relying on Russian cooperation both against Iran and potentially in Afghanistan, where Moscow's influence with some factions remains substantial. The United States needed the Russians and couldn't block the Russians. Therefore, the Russians inevitably chose this moment to strike.

On Sunday, Russian President Dmitri Medvedev in effect ran up the Jolly Roger . Whatever the United States thought it was dealing with in Russia, Medvedev made the Russian position very clear. He stated Russian foreign policy in five succinct points, which we can think of as the Medvedev Doctrine (and which we see fit to quote here):

  • First, Russia recognizes the primacy of the fundamental principles of international law, which define the relations between civilized peoples. We will build our relations with other countries within the framework of these principles and this concept of international law.
  • Second, the world should be multipolar. A single-pole world is unacceptable. Domination is something we cannot allow. We cannot accept a world order in which one country makes all the decisions, even as serious and influential a country as the United States of America. Such a world is unstable and threatened by conflict.
  • Third, Russia does not want confrontation with any other country. Russia has no intention of isolating itself. We will develop friendly relations with Europe, the United States, and other countries, as much as is possible.
  • Fourth, protecting the lives and dignity of our citizens, wherever they may be, is an unquestionable priority for our country. Our foreign policy decisions will be based on this need. We will also protect the interests of our business community abroad. It should be clear to all that we will respond to any aggressive acts committed against us.
  • Finally, fifth, as is the case of other countries, there are regions in which Russia has privileged interests. These regions are home to countries with which we share special historical relations and are bound together as friends and good neighbors. We will pay particular attention to our work in these regions and build friendly ties with these countries, our close neighbors.

Medvedev concluded, “These are the principles I will follow in carrying out our foreign policy. As for the future, it depends not only on us but also on our friends and partners in the international community. They have a choice.”

The second point in this doctrine states that Russia does not accept the primacy of the United States in the international system. According to the third point, while Russia wants good relations with the United States and Europe, this depends on their behavior toward Russia and not just on Russia's behavior. The fourth point states that Russia will protect the interests of Russians wherever they are — even if they live in the Baltic states or in Georgia, for example. This provides a doctrinal basis for intervention in such countries if Russia finds it necessary.

The fifth point is the critical one: “As is the case of other countries, there are regions in which Russia has privileged interests.” In other words, the Russians have special interests in the former Soviet Union and in friendly relations with these states. Intrusions by others into these regions that undermine pro-Russian regimes will be regarded as a threat to Russia's “special interests.”

Thus, the Georgian conflict was not an isolated event — rather, Medvedev is saying that Russia is engaged in a general redefinition of the regional and global system. Locally, it would not be correct to say that Russia is trying to resurrect the Soviet Union or the Russian empire. It would be correct to say that Russia is creating a new structure of relations in the geography of its predecessors, with a new institutional structure with Moscow at its center. Globally, the Russians want to use this new regional power — and substantial Russian nuclear assets — to be part of a global system in which the United States loses its primacy.

These are ambitious goals, to say the least. But the Russians believe that the United States is off balance in the Islamic world and that there is an opportunity here, if they move quickly, to create a new reality before the United States is ready to respond. Europe has neither the military weight nor the will to actively resist Russia. Moreover, the Europeans are heavily dependent on Russian natural gas supplies over the coming years, and Russia can survive without selling it to them far better than the Europeans can survive without buying it. The Europeans are not a substantial factor in the equation, nor are they likely to become substantial.

This leaves the United States in an extremely difficult strategic position. The United States opposed the Soviet Union after 1945 not only for ideological reasons but also for geopolitical ones. If the Soviet Union had broken out of its encirclement and dominated all of Europe, the total economic power at its disposal, coupled with its population, would have allowed the Soviets to construct a navy that could challenge U.S. maritime hegemony and put the continental United States in jeopardy. It was U.S. policy during World Wars I and II and the Cold War to act militarily to prevent any power from dominating the Eurasian landmass. For the United States, this was the most important task throughout the 20th century.

The U.S.-jihadist war was waged in a strategic framework that assumed that the question of hegemony over Eurasia was closed. Germany's defeat in World War II and the Soviet Union's defeat in the Cold War meant that there was no claimant to Eurasia, and the United States was free to focus on what appeared to be the current priority — the defeat of radical Islamism. It appeared that the main threat to this strategy was the patience of the American public, not an attempt to resurrect a major Eurasian power.

The United States now faces a massive strategic dilemma, and it has limited military options against the Russians. It could choose a naval option , in which it would block the four Russian maritime outlets, the Sea of Japan and the Black , Baltic and Barents seas. The United States has ample military force with which to do this and could potentially do so without allied cooperation, which it would lack. It is extremely unlikely that the NATO council would unanimously support a blockade of Russia, which would be an act of war.

But while a blockade like this would certainly hurt the Russians, Russia is ultimately a land power. It is also capable of shipping and importing through third parties, meaning it could potentially acquire and ship key goods through European or Turkish ports (or Iranian ports, for that matter). The blockade option is thus more attractive on first glance than on deeper analysis.

More important, any overt U.S. action against Russia would result in counteractions. During the Cold War, the Soviets attacked American global interest not by sending Soviet troops, but by supporting regimes and factions with weapons and economic aid. Vietnam was the classic example: The Russians tied down 500,000 U.S. troops without placing major Russian forces at risk. Throughout the world, the Soviets implemented programs of subversion and aid to friendly regimes, forcing the United States either to accept pro-Soviet regimes, as with Cuba, or fight them at disproportionate cost.

In the present situation, the Russian response would strike at the heart of American strategy in the Islamic world. In the long run, the Russians have little interest in strengthening the Islamic world — but for the moment, they have substantial interest in maintaining American imbalance and sapping U.S. forces. The Russians have a long history of supporting Middle Eastern regimes with weapons shipments, and it is no accident that the first world leader they met with after invading Georgia was Syrian President Bashar al Assad . This was a clear signal that if the U.S. responded aggressively to Russia's actions in Georgia, Moscow would ship a range of weapons to Syria — and far worse, to Iran. Indeed, Russia could conceivably send weapons to factions in Iraq that do not support the current regime, as well as to groups like Hezbollah. Moscow also could encourage the Iranians to withdraw their support for the Iraqi government and plunge Iraq back into conflict. Finally, Russia could ship weapons to the Taliban and work to further destabilize Pakistan.

At the moment, the United States faces the strategic problem that the Russians have options while the United States does not. Not only does the U.S. commitment of ground forces in the Islamic world leave the United States without strategic reserve, but the political arrangements under which these troops operate make them highly vulnerable to Russian manipulation — with few satisfactory U.S. counters.

The U.S. government is trying to think through how it can maintain its commitment in the Islamic world and resist the Russian reassertion of hegemony in the former Soviet Union. If the United States could very rapidly win its wars in the region, this would be possible. But the Russians are in a position to prolong these wars, and even without such agitation, the American ability to close off the conflicts is severely limited. The United States could massively increase the size of its army and make deployments into the Baltics, Ukraine and Central Asia to thwart Russian plans, but it would take years to build up these forces and the active cooperation of Europe to deploy them. Logistically, European support would be essential — but the Europeans in general, and the Germans in particular, have no appetite for this war. Expanding the U.S. Army is necessary, but it does not affect the current strategic reality.

This logistical issue might be manageable, but the real heart of this problem is not merely the deployment of U.S. forces in the Islamic world — it is the Russians' ability to use weapons sales and covert means to deteriorate conditions dramatically. With active Russian hostility added to the current reality, the strategic situation in the Islamic world could rapidly spin out of control.

The United States is therefore trapped by its commitment to the Islamic world. It does not have sufficient forces to block Russian hegemony in the former Soviet Union, and if it tries to block the Russians with naval or air forces, it faces a dangerous riposte from the Russians in the Islamic world. If it does nothing, it creates a strategic threat that potentially towers over the threat in the Islamic world.

The United States now has to make a fundamental strategic decision. If it remains committed to its current strategy, it cannot respond to the Russians. If it does not respond to the Russians for five or 10 years, the world will look very much like it did from 1945 to 1992. There will be another Cold War at the very least, with a peer power much poorer than the United States but prepared to devote huge amounts of money to national defense.

There are four broad U.S. options:

  1. Attempt to make a settlement with Iran that would guarantee the neutral stability of Iraq and permit the rapid withdrawal of U.S. forces there. Iran is the key here. The Iranians might also mistrust a re-emergent Russia, and while Tehran might be tempted to work with the Russians against the Americans, Iran might consider an arrangement with the United States — particularly if the United States refocuses its attentions elsewhere. On the upside, this would free the U.S. from Iraq. On the downside, the Iranians might not want —or honor — such a deal.
  2. Enter into negotiations with the Russians, granting them the sphere of influence they want in the former Soviet Union in return for guarantees not to project Russian power into Europe proper. The Russians will be busy consolidating their position for years, giving the U.S. time to re-energize NATO . On the upside, this would free the United States to continue its war in the Islamic world. On the downside, it would create a framework for the re-emergence of a powerful Russian empire that would be as difficult to contain as the Soviet Union.
  3. Refuse to engage the Russians and leave the problem to the Europeans . On the upside, this would allow the United States to continue war in the Islamic world and force the Europeans to act. On the downside, the Europeans are too divided, dependent on Russia and dispirited to resist the Russians. This strategy could speed up Russia's re-emergence.
  4. Rapidly disengage from Iraq, leaving a residual force there and in Afghanistan. The upside is that this creates a reserve force to reinforce the Baltics and Ukraine that might restrain Russia in the former Soviet Union. The downside is that it would create chaos in the Islamic world, threatening regimes that have sided with the United States and potentially reviving effective intercontinental terrorism. The trade-off is between a hegemonic threat from Eurasia and instability and a terror threat from the Islamic world.

We are pointing to very stark strategic choices. Continuing the war in the Islamic world has a much higher cost now than it did when it began, and Russia potentially poses a far greater threat to the United States than the Islamic world does. What might have been a rational policy in 2001 or 2003 has now turned into a very dangerous enterprise, because a hostile major power now has the option of making the U.S. position in the Middle East enormously more difficult.

If a U.S. settlement with Iran is impossible, and a diplomatic solution with the Russians that would keep them from taking a hegemonic position in the former Soviet Union cannot be reached, then the United States must consider rapidly abandoning its wars in Iraq and Afghanistan and redeploying its forces to block Russian expansion. The threat posed by the Soviet Union during the Cold War was far graver than the threat posed now by the fragmented Islamic world. In the end, the nations there will cancel each other out, and militant organizations will be something the United States simply has to deal with. This is not an ideal solution by any means, but the clock appears to have run out on the American war in the Islamic world.

We do not expect the United States to take this option. It is difficult to abandon a conflict that has gone on this long when it is not yet crystal clear that the Russians will actually be a threat later. (It is far easier for an analyst to make such suggestions than it is for a president to act on them.) Instead, the United States will attempt to bridge the Russian situation with gestures and half measures.

Nevertheless, American national strategy is in crisis. The United States has insufficient power to cope with two threats and must choose between the two. Continuing the current strategy means choosing to deal with the Islamic threat rather than the Russian one, and that is reasonable only if the Islamic threat represents a greater danger to American interests than the Russian threat does. It is difficult to see how the chaos of the Islamic world will cohere to form a global threat. But it is not difficult to imagine a Russia guided by the Medvedev Doctrine rapidly becoming a global threat and a direct danger to American interests.

We expect no immediate change in American strategic deployments — and we expect this to be regretted later. However, given U.S. Vice President Dick Cheney's trip to the Caucasus region, now would be the time to see some movement in U.S. foreign policy. If Cheney isn't going to be talking to the Russians, he needs to be talking to the Iranians. Otherwise, he will be writing checks in the region that the U.S. is in no position to cash.

By George Friedman

This analysis was just a fraction of what our Members enjoy, Click Here to start your Free Membership Trial Today! If a friend forwarded this email to you, click here to join our mailing list for FREE intelligence and other special offers. Please feel free to distribute this Intelligence Report to friends or repost to your Web site linking to www.stratfor.com .

© Copyright 2008 Stratfor. All rights reserved

Disclaimer: The above is a matter of opinion provided for general information purposes only. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis.

STRATFOR Archive

© 2005-2012 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Comments

Matthew Joseph
05 Sep 08, 08:59
U.S. doesn't have the resources
Believe me the US military is capable of a sustained war with any country, no one will admit it becuase it's an election year. Our main problem is the reality of backing from our so called allies wich is becomming fewer, As far as russia they need about ten years to catch up technologically to our military all they have is a mass number of under fed under paid and overtrained masses. If we don;t deal with these problems now are future generations are screwed will they become communist of bow down to radical islam.

Yes war sucks but it is also inevetable in todays messed up world all this is scare tactics to back us down, I am sure are founding fathers were scared shitless but imagine if they did not reach down and grab ahold. For all you pencil pushing desk jockies leave the war theories and solutions to those who know what war really is not from reading books and interviewing ex disgruntled officers who are still pissed for getiing riffed and did not make it to the next rank.

Also if we are to remain a free society we need to stop backing down for fear of not being politically correct.


Post Comment (Moderated)




Commenting Issue - If on submitting you are returned to the main Index Page (50% chance) then your comment has not been accepted, Follow below steps for 95% chance of comment being accepted.

  1. Click your browser Back button (from main index page).
  2. COPY your comment text from Comment box (i.e. copy to clipboard).
  3. Press PAGE Refresh - You should see the message "You are not authorized to carry out this operation"
  4. Paste your comment back into the comment text box.
  5. Click Submit - If everything goes okay you will remain on the article page with the message "Your comment was held for moderation and will be reviewed shortly".
  6. If instead you are again returned to the main index page then repeat 1-5, alternatively EMAIL to comments @ marketoracle.co.uk quoting the article number.

FREE Deflation Survival GuideFREE Updated 118 Page Independant Investor E-book