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PAKISTAN could collapse within months, one of the more influential counter-insurgency voices in Washington says.

The warning comes as the US scrambles to redeploy its military forces and diplomats in an attempt to stem rising violence and anarchy in Afghanistan and Pakistan.

“We have to face the fact that if Pakistan collapses it will dwarf anything we have seen so far in whatever we’re calling the war on terror now,” said David Kilcullen, a former Australian Army officer who was a specialist adviser for the Bush administration and is now a consultant to the Obama White House.

“You just can’t say that you’re not going to worry about al-Qaeda taking control of Pakistan and its nukes,” he said.

As the US implements a new strategy in Central Asia so comprehensive that some analysts now dub the cross-border conflict “Obama’s war”, Dr Kilcullen said time was running out for international efforts to pull both countries back from the brink.

When he unveiled his new “Afpak” policy in Washington last month, the US President, Barack Obama, warned that while al-Qaeda would fill the vacuum if Afghanistan collapsed, the terrorist group was already rooted in Pakistan, plotting more attacks on the US.

“The safety of people round the world is at stake,” he said.

Laying out the scale of the challenges facing the US in Iraq, Afghanistan and Pakistan, Dr Kilcullen put the two countries invaded by US-led forces after the September 11 attacks on the US on a par – each had a population of more than 30 million.

“But Pakistan has 173 million people and 100 nuclear weapons, an army which is bigger than the American army, and the headquarters of al-Qaeda sitting in two-thirds of the country which the Government does not control,” he told the Herald .

Added to that, the Pakistani security establishment ignored direction from the elected Government in Islamabad as waves of extremist violence spread across the whole country – not only in the tribal wilds of the Afghan border region.

Cautioning against an excessive focus by Western governments on Afghanistan at the expense of Pakistan, Dr Kilcullen said that “the Kabul tail was wagging the dog”. Comparing the challenges in the two, he said Afghanistan was a campaign to defend a reconstruction program. “It’s not really about al-Qaeda. Afghanistan doesn’t worry me. Pakistan does.”

But he was hesitant about the level of resources for, and the likely impact of, Washington’s new drive to emulate an Iraq-style “surge” by sending an extra 21,000 troops to Afghanistan.

“In Iraq, five brigades went into the centre of Baghdad in five months. In Afghanistan, it will be two combat brigades [across the country] in 12 months. That will have much less of a punch effect than we had in Iraq.

“We can muddle through in Afghanistan. It is problematic and difficult but we know what to do. What we don’t know is if we have the time or if we can afford the cost of what needs to be done.”

Dr Kilcullen said a fault line had developed in the West’s grasp of circumstances on each side of the Durand Line, the disputed border between Afghanistan and Pakistan.

“In Afghanistan, it’s easy to understand, difficult to execute. But in Pakistan, it is very difficult to understand and it’s extremely difficult for us to generate any leverage, because Pakistan does not want our help.

“In a sense there is no Pakistan – no single set of opinion. Pakistan has a military and intelligence establishment that refuses to follow the directions of its civilian leadership. They have a tradition of using regional extremist groups as unconventional counterweights against India’s regional influence.”

In the absence of a regional diplomatic initiative to build economic and trade confidences before tackling the security issue, the implication, Dr Kilcullen said, was that India alone could not give Pakistan the security guarantees Islamabad required.

The special US envoy Richard Holbrooke has been charged with brokering a regional compact by reaching out to Iran, Russia and China, and Dr Kilcullen said: “This is exactly what he’s good at and it could work.

“But will it? It requires regional architecture to give the Pakistani security establishment a sense of security which might make them stop supporting the Taliban,” he said.

“The best case scenario is that the US can deal with Afghanistan, with President Obama giving leadership while the extra American troops succeed on the ground – at the same time as Mr Holbrooke seeks a regional security deal,” he said. The worst case was that Washington would fail to stabilise Afghanistan, Pakistan would collapse and al-Qaeda would end up running what he called ‘Talibanistan.’

“This is not acceptable. You can’t have al-Qaeda in control of Pakistan’s missiles,” he said.

“It’s too early to tell which way it will go. We’ll start to know about July. That’s the peak fighting season … and a month from the Afghan presidential election.”

…. more articles in the Sydney Morning Herald

A Special Invitation from MoneyTalks – 2009 Risk Capital Investing Workshop

During the third week of May we are pleased to present our on-going series of workshops on risk capital investing strategies and opportunities.

You’ll hear from a hand-picked group of seven industry insiders on current market and business trends, commodity projections, as well as strategies for retaining and maximizing risk capital returns in this volatile global economy. Get answers to questions such as:

•    Is everything “risk” capital now?
•    Are we near the market bottom?
•    Where should we look to get back into the market?
•    Hard assets vs. the service economy
•    Is the relationship between gold and the $US changing?
•    Invest in Canada or the US? What about emerging markets?

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Our MC in Victoria is MoneyTalks regular Dunnery Best, in Abbotsford we’ll be joined by Rick Bekkering of Canaccord Capital and I’ll be hosting the evening in Nanaimo.

These evening workshops start at 6:30pm and promise to be must-see events. MoneyTalks listeners and website users can attend these workshops AT NO COST but you must register in advance. Please email me at grant@worldoutlookconference.com or call 1.877.926.6849 to reserve.

Seating is limited and we will be making the tickets available on a first come – first serve basis. You are welcome to reserve tickets for family, friends and colleagues. We look forward to seeing you in May.

Sincerely,

Grant Longhurst

The Cuban American National Foundation (CANF), a group vehemently opposed to the Cuban government, came out in favor of easing the U.S. isolation of Cuba last week. The move opens the possibility that the United States might shift its policies toward Cuba. Florida is a key state for anyone who wants to become president of the United States, and the Cuban community in Florida is substantial. Though the Soviet threat expired long ago, easing the embargo on Cuba has always held limited value to American politicians with ambitions. For them, Florida is more important than Cuba. Therefore, this historic shift alters the U.S. domestic political landscape.

In many ways, the U.S. policy of isolating Cuba has been more important to the Cubans than to the United States, particularly since the fall of the Soviet Union. The Cuban economy is in abysmal shape. But the U.S. embargo has been completely ineffective on the stated goal of destabilizing the Cuban government, which has used the embargo as justification for economic hardship. Although the embargo isolates Cuba from its natural market, the United States, the embargo is not honored by Canada, Mexico, Europe, China or anyone else beyond the United States. That means Cuban goods can be sold on the world market, Cuba can import anything it can pay for, and Cuba can get investment of any size from any country wishing to invest on the island. Because it has almost complete access to the global market, Cuba’s economic problem is not the U.S. embargo. But the embargo does create a political defense for Cuban dysfunction.

It is easy to dismiss the embargo issue as primarily a matter of domestic politics for both nations. It is also possible to argue that, though Cuba was once significant to the United States, that significance has declined since the end of the Cold War. Both assertions are valid, but neither is sufficient. Beyond the apparently disproportionate U.S. obsession with Cuba, and beyond a Cuban government whose ideology pivots around anti-Americanism, there are deeper and more significant geopolitical factors to consider.

Cuba occupies an extraordinarily important geographic position for the United States. It sits astride the access points from the Gulf of Mexico into the Atlantic Ocean, and therefore is in a position to impact the export of U.S. agricultural products via the Mississippi River complex and New Orleans (not to mention the modern-day energy industrial centers along the Gulf Coast). If New Orleans is the key to the American Midwest’s access to the world, Cuba is the key to New Orleans.

(click image to enlarge)

Access to the Atlantic from the Gulf runs on a line from Key West to the Yucatan Peninsula, a distance of about 380 miles. Running perpendicular through the middle of this line is Cuba. The Straits of Florida, the northern maritime passage from the Gulf to the Atlantic, is about 90 miles wide from Havana to Key West. The Yucatan Channel, the southern maritime passage, is about 120 miles wide. Cuba itself is about 600 miles long. On the northern route, the Bahamas run parallel to Cuba for about half that distance, forcing ships to the south, toward Cuba. On the southern route, after the Yucatan gantlet, the passage out of the Caribbean is made long and complicated by the West Indies. A substantial, hostile naval force or air power based in Cuba could blockade the Gulf of Mexico — and hence the American heartland.

Throughout the 19th century, Cuba was of concern to the United States for this reason. The moribund Spanish Empire controlled Cuba through most of the century, something the United States could live with. The real American fear was that the British — who had already tried for New Orleans itself in the War of 1812 — would expel the Spanish from Cuba and take advantage of the island’s location to strangle the United States. Lacking the power to do anything about Spain itself, the United States was content to rely on Madrid to protect Spanish interests and those of the United States.

Cuba remained a Spanish colony long after other Spanish colonies gained independence. The Cubans were intensely afraid of both the United States and Britain, and saw a relationship with Spain — however unpleasant — as more secure than risking English or American domination. The Cubans had mixed feelings about the prospect of formal independence from Spain followed by unofficial foreign domination.

But in 1895, the Cubans rose up against Spain (not for the first time) in what turned into the struggle that would culminate in the island’s independence from the country. With a keen interest in Cuba, Washington declared war on Spain in 1898 and invaded Cuba. The Spanish were quickly defeated in the Spanish-American War and soon withdrew from the island. For the United States, the main goal was less about gaining control of Cuba itself (though that was the net result) than about denying Cuba to other world powers.

The United States solved its Cuban problem by establishing a naval base at Guantanamo Bay on the island. Between this base and U.S. naval bases in the Gulf and on the East Coast, British naval forces in the Bahamas were placed in a vise. By establishing Guantanamo Bay on the southern coast of Cuba, near the Windward Passage between Cuba and Haiti, the United States controlled the southern route to the Atlantic through the Yucatan Channel.

For the United States, any power that threatened to establish a naval presence in Cuba represented a direct threat to U.S. national security. When there were fears during World War I that the Germans might seek to establish U-boat bases in Cuba — an unrealistic concern — the United States interfered in Cuban politics to preclude that possibility. But it was the Soviet Union’s presence in Cuba during the Cold War that really terrified the Americans.

From the Soviet point of view, Cuba served a purpose no other island in the region could serve. Missiles could be based in many places in the region, but only Cuba could bottle up the Gulf of Mexico. Any Soviet planner looking at a map would immediately identify Cuba as a key asset; any American planner looking at the same map would identify Cuba in Soviet hands as a key threat. For the Soviets, establishing a pro-Soviet regime in Cuba represented a geopolitical masterstroke. For the United States, it represented a geopolitical nightmare that had to be reversed.

Just as U.S. medium- and intermediate-range ballistic missiles in Turkey put the Soviet heartland in the crosshairs during the Cold War, Soviet missiles deployed operationally in Cuba put the entire U.S. Eastern Seaboard at risk. Mere minutes would have been available for detection and recognition of an attack before impact. In addition, the missiles’ very presence would serve as a significant deterrent to conventional attack on the island — which is why it was so important for the United States not to allow an established missile presence in Cuba.

The final outcome of the U.S.-Soviet standoff pivoted on the Cuban Missile Crisis of 1962, which ended in an American blockade of Cuba, not a Soviet blockade of the Gulf. It was about missiles, not about maritime access. But the deal that ended the crisis solved the problem for the United States. In return for a U.S. promise not to invade Cuba, the Soviets promised not to place nuclear missiles on the island. If the Soviets didn’t have missiles there, the United States could neutralize any naval presence in Cuba — and therefore any threat to American trade routes. Fidel Castro could be allowed to survive, but in a position of strategic vulnerability. One part of Washington’s strategy was military, and the other part was economic — namely, the embargo.

Throughout Cuba’s history as an independent nation, the Cubans simultaneously have viewed the United States as an economic driver of the Cuban economy, and as a threat to Cuban political autonomy. The Americans have looked at Cuba as a potential strategic threat. This imbalance made U.S. domination of Cuba inevitable. Cuban leaders in the first half of the 20th century accepted domination in return for prosperity. But there were those who argued that the island’s prosperity was unequally distributed, and the loss of autonomy too damaging to accept. Castro led the latter group to success in the 1959 revolution against U.S.-supported Cuban President Fulgencio Batista. The anti-Castro emigres who fled to the United States and established an influential community of anti-Castro sentiment had been part of the elite who prospered from Cuba’s high level of dependence on the United States.

Cuban history has been characterized by an oscillation of views about the United States, with Cubans both wanting what it had to offer and seeking foreign powers — the Spanish, the British the Soviets — to counterbalance the Americans. But the counterbalance either never materialized (in the case of the British) or, when it did, it was as suffocating as the Americans (in the case of the Soviets). In the end, Cuba probably would have preferred to be located somewhere not of strategic interest to the United States.

The U.S. obsession with Cuba does not manifest itself continuously; it appears only when a potentially hostile major power allies itself with Cuba and bases itself there. Cuba by itself can never pose a threat to the United States. Absent a foreign power, the United States is never indifferent to Cuba, but is much less sensitive. Therefore, after the end of the Cold War and the Soviet collapse, Cuba became a minor issue for the United States — and political considerations took precedence over geopolitical issues. Florida’s electoral votes were more important than Cuba, and the status quo was left untouched.

Cuba has become a bit more important to the United States in the wake of the August 2008 Russo-Georgian war. In response to that conflict, the Americans sent warships into the Black Sea. The Russians responded by sending warships and strategic bombers into the Caribbean. High-profile Russian delegations have held talks with Cuba since then, increasing tensions. But these tensions are a tiny fraction of what they once were. Russia is in no way a strategic threat to American shipping in the Gulf of Mexico, nor is it going to be any time soon, due to Russia’s limited ability to wield substantive power in such a distant theater.

But Cuba is always an underlying concern to the United States. This concern can subside, but it cannot go away. Thus, from the American point of view, Russian probes are a reminder that Cuba remains a potential threat. Advocates of easing the embargo say it will help liberalize Cuba, just as trade relations liberalized Russia. The Cuban leadership shares this view and will therefore be very careful about how any liberalization is worked out. The Cubans must be thoroughly convinced of the benefits of increased engagement with the United States in order for Havana to sacrifice its ability to blame Washington for all of its economic problems. If Cuba opens too much to the United States, the Cuban regime might fall. In the end, it might be the Cubans who shy away from an end to the embargo. The Americans have little to lose either way.

But that is all politics. The important thing to understand about Cuba is the historic U.S. obsession with the island, and why the Cubans have never been able to find their balance with the United States. The answer lies in geopolitics. The politics in play now are simply the bubble on the surface of much deeper forces.

Article published by www.stratfor.com. Get a 7 Day Trial with Stratfor HERE

The operation to rescue Capt. Richard Phillips involved dozens of Navy SEALs, who parachuted from an aircraft into the scene near dark Saturday, landing in the ocean. The SEALs were part of a group of Special Operations forces involved in the effort, according to military officials.

The SEALs set up operations on the USS Bainbridge, which had been communicating with the four pirates via radio and had used smaller boats to make deliveries of food and water to their lifeboat. Yet the pirates were growing increasingly agitated, the officials said. At one point Saturday, the pirates opened fire on one of the smaller U.S. Navy craft that approached.

As the seas grew rougher, the Bainbridge offered to tow the lifeboat to calmer waters, and the pirates agreed, linking up the lifeboat to the destroyer with a towing cable that left 75 to 80 feet between the two vessels. Phillips at the time was tied up in the lifeboat, having been bound — and occasionally beaten — by the pirates ever since he had attempted to escape by jumping into the water on Friday, the officials said.

Meanwhile, one of the pirates, estimated to be between 16 and 20 years old, asked to come aboard the Bainbridge to make a phone call. He had been stabbed in the hand during an altercation with the crew of the Maersk Alabama and needed medical care. “He effectively gave himself up,” a senior military official said. The Navy then allowed that pirate to speak with the others in hopes that he could persuade them to give up.

The three other pirates, however, showed signs of growing irritation, as the Bainbridge, 18 miles from shore, towed the lifeboat further out to sea, the senior military official said. “They had no promise of money, clearly no passage. The one ticket they had was the captain,” said the official, who spoke on the condition of anonymity because he was not authorized to discuss the matter on the record.

“In the last discussion, they said, ‘If we don’t get what we want, we will kill the captain,’ ” the official said.

Soon afterward, two pirates moved to one of the hatches of the lifeboat and stuck their heads out. The third pirate advanced toward the captain and pointed his AK-47 straight at Phillips’s back, the rifle touching it or inches away, the official said.

U.S. military observers thought that Phillips was about to be shot. SEAL snipers, who were positioned on a deck at the stern of the Bainbridge, an area known as the fantail, had the three pirates in their sights. The on-scene commander gave the snipers authority to fire.

“As soon as the snipers had a clear shot at the guy who had the rifle, they shot him and the other two in the hatches,” the senior military official said.

A member of the Special Operations team slid down the tow line into the water and climbed aboard the lifeboat. Phillips was then put in a small craft and taken to the Bainbridge.

more articles in the Washington Post HERE

The Reuters headline put it this way: “Pirates Pose Annoying Distraction For Obama.”

So many distractions, aren’t there? Only a week ago, the North Korean missile test was an “annoying distraction” from Barack Obama’s call for a world without nuclear weapons and his pledge that America would lead the way in disarming. And only a couple of days earlier the president insisted Iraq was a “distraction” — from what, I forget: The cooing press coverage of Michelle’s wardrobe? No doubt when the Iranians nuke Israel, that, too, will be an unwelcome distraction from the administration’s plans for federally subsidized daycare, just as Pearl Harbor was an annoying distraction from the New Deal, and the First World War was an annoying distraction from the Archduke Franz Ferdinand’s dinner plans….more HERE