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Category: International

12/05/2022

A Russian Perspective on Ukraine- (Gregory Clark article below)

25 April 2022

While the brutal tactics of the Russians in Ukraine make horrendous continuing news, significant aspects of the origins of Russia’s Ukraine invasion have been ignored by Western media. This does not justify the invasion, but one might wonder if the Donbas region in the East could ever have been retained within Ukraine.

It is well known that there is a gradation across the Ukraine from West to East, those in the West favouring Europe about 90%, but those in the East, the Donsek region, has almost 90% keen to merge with Russia. There was a strong separatist movement in these provinces, with ongoing fighting. The Ukrainian army was not keen to fight other Ukrainians and it was said that neo-Nazi groups were involved in fighting the separatists using very Fascist tactics.

Historically there had been some strong right wing groups in the Ukraine, and it might be noted that when Germany invaded, troops from Ukraine were recruited and fought with them against the Russians. At the end of the war, naturally these groups were not seen, but it has been said that the CIA was in touch with them, and that they facilitated the successful storming of the Ukrainian Parliament in the coup in 2014, which led to the Donbas region in the east attempting to secede from Ukraine and Russia seizing Crimea. It might be noted that Crimea was given to Ukraine by Russia in 1954 when they were both part of the USSR. The transfer was facilitated by Nikita Khrushchev who needed the Ukrainian votes to further his own career, and made little difference while Ukraine was in the USSR.

Fighting continued in the Donbas region which includes the provinces of Luhansk and Donetsk. The fighting led to the Minsk Agreement in September 2014, but the agreement failed leading to Minsk II in February 2015. Luhansk and Donetsk were supposed to become autonomous regions, but it has never happened. Fighting has continued, so Russia’s claim that they are fighting Nazis is not as absurd as it has been painted, at least in those regions.

When the USSR was collapsing the US Secretary of State James Baker promised Russian President Mikhail Gorbachev on 9 February 1990 that NATO would not recruit countries to the East. However, those countries were fearful of a Russian resurgence and wanted to join NATO. The USSR collapsed in 1991. The Czech Republic, Hungary and Poland joined in 1999 and Russia objected. Lithuania, Latvia, Estonia, Bulgaria, Romania, Slovakia and Slovenia joined in 2004. Note the marked move of NATO to the East. Albania and Croatia joined in 2009, Montenegro in 2017 and North Macedonia in 2020. The Balkan countries presumably joined as protection against Serbia, which started the wars as Yugoslavia disintegrated in 1991-1999. Serbia was a strong Russian ally.

Prior to invading Ukraine, Russia wanted a guarantee that Ukraine would not join NATO, but Ukraine along with Georgia and Bosnia-Herzegovina have expressed membership aspirations. No one was willing to give a guarantee the Ukraine would not join NATO even as the Russian troops massed for the invasion, though some hoped that Putin was bluffing.

Russia is now the 11^th biggest economy in the world, ahead of Spain and Australia at 12th and 13^th, so economically it is only a middle power, but having been a superpower with an empire recently, it has weapons far in excess of other middle powers and as it pursues a commodities-led recovery it hankers for its old Empire.

The German Social Democrats, the coalition partners of Angela Merkel, assumed that if Russia were integrated into the European economy by Germany buying their gas there would be no wars. This has been a major miscalculation. Germany was dependent on Russia for 55% of their gas, this having gone up when then they closed their nuclear plants after the Fukushima disaster. They still get 39% of their gas from Russia and are reluctant to turn it off as it would cause a major recession there. This is very controversial in Germany at present. Someone calculated that German purchase of Russian gas can pay for a tank every 20 seconds.

Here is an article by Gregory Clark, who spent 10 years with the Australian Dept. of External Affairs (which was the Foreign Relations Dept.) and resigned in 1965 in protest at Australia going into Vietnam. He went to Tokyo and was the lead correspondent for The Australian in Japan 1969-74 and a Japanese academic. He came back as an advisor to Prime Minister and Cabinet in 1974-76 (the Whitlam era), and returned to Japan after that.

Western media have failed dismally in reporting the Ukraine war

10/04/2022

Liberal Preselection problems are significant in a Binary System

10 April 2022

Now that the election is called, progressives might delight in the bad publicity associated with the Liberals pre-selection battle.

The Saturday Paper had 3 articles yesterday, a front page about Morrison’s personal pre-selection scheming double-cross, an article about ‘How Morrison became a tin-pot dictator’, by Stephen Mutch, a moderate Liberal who was a NSW State MLC and briefly member for Cook, and a comment by ex-Federal leader John Hewson saying that Morrison’s willingness to ride roughshod over constituent processes shows total disregard for rank and file members.

In the immediate term of this election, it may hurt the Liberals, though 6 weeks is long time in politics so many people will forget. In my own experience door-knocking in the North Sydney by-election when Treasurer Joe Hockey resigned to go to New York, a Liberal told me that the local branch had pre-selected a candidate with 36 votes out of 40, and Trent Zimmerman had 2. But Head office and the branch both had 40 votes, and put in Zimmerman with all their votes, giving him 42. The local branch members were disgusted and did not help hand out. Liberals came from other areas to staff the booth; it was a blue ribbon seat and a predictable victory. Zimmerman is a moderate and the branch had a harder Right candidate, so head office favoured the moderate, who is now asking us to vote for him so that there are some moderates left in the Liberal party.

Similarly, Felicity Wilson, a moderate was parachuted into the State seat of North Sydney against the branch’s desire and against the branch’s more Right-wing candidate.

Craig Kelly was kept in his seat when the branch wanted to dis-endorse him before last election, but were over-ruled by Morrison’s intervention. What a success he turned out to be; anti-climate change, and then an anti-vaxxer. The Libs stuck with him as they needed his vote only to be rewarded as he became an independent and now fronts Clive Palmer’s United Australia Party.

According to Mutch a ‘troika’ determines pre-selections in NSW; Morrison, Perrottet and he does not name the third person. The question must be asked, what would happen if the troika did not control the numbers. Who controls the branches and who would control the pre-selections if it were democratic?

Morrison has claimed to be a moderate, but Alex Hawke, Morrison’s hatchet man as the minder of David Campbell an evangelical Liberal right-wing numbers man in the NSW Upper house in the early 2000s, and was then given a safe seat. The Right are in control.

The US Republican Party is completely out of touch with the common person in the US and acts in the interests of banks, big business, the gun lobby, fossil fuels, voter restriction and gerrymandering to maintain power. They seem totally beholden to Donald Trump. This has happened in about 15 years. In their campaigning and some of the philosophy the Liberals follow the Republicans closely. We must ask, ‘Who is joining the Liberal party?’ Fewer and fewer people join political parties, so they are correspondingly easier to stack or influence. Lobby groups work on politicians, but if they can have members beholden to them for their pre-selections, it would make their lobbying much easier. The Liberals are perceived as very right wing and very influenced by the right-wing Christian lobby. Why would anyone else join? And if they don’t, who will be left to control the grass roots?

In an article in the Sun Herald today (‘Infighting could cost seats: top Liberals) Liberal Federal Vice President Teena McQueen said that sitting members like Trent Zimmerman and Katie Allen could lose their seats but ‘with a couple of lefties gone we can get back to our core philosophy’.

This may not matter for 6 years if Labor wins and gets a second term, or even 9 years if they get a rare third term, but in a binary system the Libs will win eventually, which is why the nature of a major party membership and their pre-selection processes are of interest. If the Liberals go the way of the US Republicans we are in danger.

Australians generally are sick of the two major parties and their capture by their lobby groups. The High Court declining to intervene to support the branches was on the ground that political parties are Private entities. They are not mentioned anywhere in the Constitution so have become almost privatised lobbies. Labor have declined to release many policies to remain a small target because negative campaigning is more cost-effective than positive ideas. The question is whether Labor will actually do the right thing when they get in, or will they be conservative, do very little and leave things as the Liberals have made them in order to stay in power? Pundits have described the ‘right-wing ratchet’ where the Conservative parties privatise and increase social inequality and the Progressive parties make noise and minor changes, but never actually undo what the Right has done.

The Independents are a fresh start, and the negative campaigning does not work as well against them. There is a website ‘notindependent.com’ that is owned by the Liberals asking which party the independent will support? This of course tries to turn the whole thing into a binary contest again and the Independent effectively into a major party backbencher. They also want the Independents to have a comprehensive set of policies, as if the Liberals do!

In the medium term, it may be reassuring to think that if a tradition of Independents can be established the major parties will not have it all their way, but this does not solve the problem of a Republican-like Liberal Party.

My own answer is a major change to the constitution with citizen-initiated referenda at 3 levels of government able to overturn Parliamentary decisions, part-time politicians limited to 2 terms so that politics is not a career and there are no significant party hierarchies to climb, multiple political parties so that no single one ever has an absolute majority and the members’ retirement plan is their current job. This will take years of campaigning to achieve, so we’d better get on with it, or the increasing power and vulnerability of a private political party will have us following the US model, just a few years behind.

www.thesaturdaypaper.com.au/opinion/topic/2022/04/09/how-scott-morrison-became-tin-pot-dictator/164942640013667#mtr

07/04/2022

Ukraine- what is the future?

7 April 2022

The media is trumpeting how successful the doughty Ukrainians have been against the Russian aggressors, and the war crimes of the Russians assassinating civilians and destroying civilian facilities. There has been a lot of discussion about Russia’s lack of success; Putin’s surrounding himself by Yes-men and getting wrong information or having political insecurity or mental health problems. This is all somewhat hopeful. Russia is still immensely more powerful than the Ukraine and is likely to get control of the skies, which will give them an even greater advantage.

The West seemed surprised initially by the Russian invasion as they had assumed that if everyone was involved in trade and had increasing national incomes that there would be no war. Since 2000 Russia’s per capita income had risen much more rapidly than the European average since they had increased their fossil fuel exports.

The Social Democrats in Germany had been happy to buy Russian gas on the assumption of trade guaranteeing peace. Germany was also building the Nordstream gas pipeline under the Baltic Sea to make it easier to get Russian gas. Currently Europe overall gets 40% of its gas, 27% of its oil and 46% of its coal from Russia.

After the invasion, the West initially started sanctions in a very unified effort. The rouble fell dramatically from about 13 US cents to 7, but as European countries continued to buy the gas the Russian economy was seen to be less damaged. So the rouble has recovered to about 11, either because the Russian economy is holding up due to the continued income, or that peace is likely to be negotiated soon. Sadly, the former explanation is more likely.

Europe will take some time to make the infrastructure changes to replace Russian gas with liquefied US gas, as the methane gas has to be frozen to minus 160 degrees at atmospheric pressure before it liquefies (or minus 83 at 45 atmospheres of pressure) and then transported by ship at high pressure to ports that can distribute it. Europe currently takes 120 Billion cubic metres (Bcm) of Russian gas. Also production cannot be ramped up quickly. The US has said that it can produce and extra 15 Bcm by the end of the year and 50 by 2030. Australia and Qatar, the other big exporters do not have much uncontracted gas. Environmental limits on fracking have stopped Australia increasing production. Germany has cut its dependence on Russian gas from 55% to 40%, but major cuts would do a lot of harm to their economy. (SMH 28/3/22)

Russia will also try either to get control of Ukraine or to get some part of it, or demonstrate its power in other ways so that it can claim victory. There is a small eastern area of Moldova with a Russian separatist movement and there is a temptation for Russia to link them to Crimea by capturing Odessa and the Baltic coast of Ukraine. The idea that they are defeated may be very premature.

Here is a graph of the Rouble v. US dollar, which shows the Russian currency has largely recovered.

It is interesting that a recent (UK) Telegraph column by Ben Marlow quoted in the SMH 5/4/22 urges stronger sanctions are needed if they are to be successful.

Opinion

The West must wage total economic war against Putin

By Ben Marlow

April 4, 2022 — 11.02am

Russia’s pledge to reduce military activity around Kyiv, as part of what it calls “de-escalation”, has rightly been met with scepticism in the West, though sadly not nearly enough.

The move has prompted talk at the highest levels about whether sanctions should be lifted if Russia retreats and commits to peace. The possibility of sanctions removal was first raised by Antony Blinken, US secretary of state, a fortnight ago, on the basis that Vladimir Putin agreed to an “irreversible” withdrawal from Ukraine.

Then in an interview last weekend, Britain’s foreign secretary Liz Truss said the West could relent if Moscow withdraws and commits to “no further aggression”. This is naive in the extreme and suggests America, Europe and Britain have learnt nothing about Russia’s psychotic regime. Have they forgotten what two decades of appeasement achieved?

Putin played the West for fools right up until the invasion. Even now, Emmanuel Macron continues to pander to Russia’s warmongering leader with zero to show for nearly 20 phone conversations and a little tête-à-tête in Moscow.

Indeed there is a strong argument for doing the opposite – instead of lifting sanctions, the international community should be preparing to hit the Kremlin with a new round of even more punishing measures, not least because the current ones are clearly losing their effectiveness.

The sanctions that were imposed on Russia at the end of February were unlike anything seen before in terms of speed, scale and Western collaboration. But they certainly couldn’t be called exhaustive and the impact has clearly waned.

The Russian economy has not been crushed despite all the excitable predictions from analysts and commentators. It suffered something akin to a financial heart attack and though a full recovery will take some time, it hasn’t proved fatal and there are signs it is already on the mend thanks to the decisive action of highly regarded central bank governor, Elvira Nabiullina.

The Russian stock market has reopened after a month-long deep freeze.

A temporary stop on equity sales by non-residents, along with a short-selling ban and a short trading window, was introduced. Although there are obviously questions about how sustainable such interventionary measures are, a crash was averted.

Russia’s banking system has stabilised. Measures such as capital controls and freezes on foreign exchange deposits have helped to prevent a run on the country’s banks.

The West needs to leap into action, pressing home its advantage with a new round of sanctions that completely devastate the Russian economy, starting with a full energy embargo. Without that sanctions will ultimately fail.

Helped by a doubling of interest rates and a ban on residents transferring money out of Russia, the rouble has staged a strong rally. After slumping as much as 33 per cent against the US dollar the day after Russia’s invasion, it is now close to pre-war levels of 85 to the dollar. It might have been a nice soundbite but the rouble has not been “turned to rubble” as Joe Biden declared last week in Poland.

Much of the recovery is artificial but as long as oil and gas receipts continue to flood into the country, Russia can keep rebuilding its hard currency reserves and weather the storm.

“Self-sanctioning” in the shipping industry has been a resounding failure. Oil tankers continue to arrive in Russian ports. Traffic in March has been only slightly lower than it was a year ago, and is higher than it was during the same month in 2016 and 2015, according to research from the Institute for International Finance. Even when the discount on Russian crude is factored in, oil revenues are near record levels, the IIF says.

That’s not to say that sanctions have been toothless. Goldman Sachs is forecasting a 10 per cent downturn in Russia this year, while Barclays predicts a 12.4 per cent slump. But while Barclays expects another 3.5 per cent decline in 2023, Goldman thinks growth will have returned already with GDP expanding by 2.4 per cent and has pencilled in a record current account surplus of $US200 billion by the end of the year.

Germany could withstand the shock. Robert Habeck, its own economic minister, has admitted that it would at least be able to make it through the summer. It is just too afraid to inflict further hardship on the German people, but if Lithuania and Poland are prepared to then why shouldn’t Europe’s biggest economy? They are even more dependent on the Kremlin’s oil and gas.

It may not come to that, of course, if Putin follows through with a threat to turn off the taps because the West refuses to meet Russian demands to pay for gas in roubles.

There also needs to be a widening of the ban on Russian banks using the Swift payments system. Just seven have been cut off from using it, and of the five biggest, Sberbank is the only one that has been shut out.

What else can be done? Wally Adeyemo, the US deputy Treasury secretary, has talked about additional export controls – some experts advocate for a full commodities ban or at least a broader raw materials embargo – and Volodymyr Zelensky has called for a trade and shipping blockade, something Adeyemo has refused to rule out. There should also be punishment for Western companies that continue to do business in Russia.

But as things stand, if the price Putin was meant to pay for his invasion was the crippling of Russia’s economy, then sanctions have undoubtedly failed.

Telegraph, London

24/03/2022

China may get a naval base less than 2,000km from Australia

24 March 2022

This is a worry! Here is the article from the SMH

China set to sign first security deal in the Pacific on Australia’s doorstep

By Eryk Bagshaw March 24, 2022 — 7.33pm

Singapore: China and Solomon Islands are set to sign off on a security deal that will see Chinese warships based in the Pacific and shift the balance of power in Australia’s region.

The agreement will give China the power to use its military to protect the safety of Chinese personnel and major projects in Solomon Islands and give Beijing a base for its navy less than 2000 kilometres off Australia’s coast. The base would be the first time Australia has had a strategic adversary within striking distance of its coastline since World War II.

“China may, according to its own needs and with the consent of Solomon Islands, make ship visits to, carry out logistical replenishment in and have stopover and transition in the Solomon Islands,” the draft framework agreement states.

“Solomon Islands may, according to its own needs, request China to send police, armed police, military personnel and other law enforcement and armed forces to Solomon Islands to assist in maintaining social order, protecting people’s lives and property.”

The draft, released online on Thursday afternoon and verified by the Australian government, is a sharp escalation in the relationship between the two governments after protests, riots and looting gripped the island nation in November.

The conflict was driven by COVID-19 measures, ethnic tensions and regional tensions between Honiara, the capital, and its most populous province, Malaita, but it was also linked to allegations of corruption involving Chinese infrastructure deals and Honiara’s decision to switch its diplomatic allegiance from Taiwan to China.

The draft states Beijing and Honiara will enter into the agreement with the view of “strengthening security co-operation, mutual respect for sovereignty, equality and mutual benefit”.

Anna Powles, a senior lecturer in international security and a Pacific diplomacy expert at New Zealand’s Massey University, said the draft agreement was “very significant”.

“The security agreement is one of the first of its kind in the Pacific; its scope is broad and suitably vague and its provisions range from maintaining public order through to protecting Chinese citizens and assets, and providing humanitarian and disaster relief,” Powles said.

“The agreement also contains several ambiguous and potentially ambitious provisions with geopolitical implications including that China is seeking logistical supply capabilities and material assets located in Solomon Islands to support ship visits.”

Powles said the agreement suggests logistics and supplies will be available in the Solomons to support the People’s Liberation Army Navy.

“If it comes under force, the agreement also contains references to China’s ‘own needs’, which could refer to China’s strategic interests; China’s pursuit of its strategic interests in the Pacific is of direct concern to Australia and its allies and partners.”

Australia also sent troops and federal police to the Solomon Islands after a request for assistance from its Prime Minister, Manasseh Sogavare, in November. The request was made under a 2017 treaty between Australia and Solomon Islands to request help from Australian armed forces and the Australian Federal Police in the event of civil unrest, but that agreement would be put under a cloud if the deal with Beijing goes through.

Solomon’s opposition MP Peter Kenilorea told the ABC he was deeply concerned by the development. “This has implications for the Pacific islands region, including Australia,” he said.

China has been courting Pacific island nations to establish a military presence in the area, but the Solomons deal would be the first time the Chinese navy has an operational presence in the region beyond the South China Sea.

In 2018 China approached Vanuatu about building a permanent military presence in the South Pacific, triggering urgent discussions at the highest levels in Canberra and Washington. Thursday afternoon’s draft document, first released by a Solomons’ opposition adviser, sent officials in Canberra scrambling to verify its authenticity. The Sydney Morning Herald and The Age confirmed on Thursday evening that the Australian government believes the document is genuine, deepening concerns about China’s intentions in the Pacific.

Foreign Affairs Minister Marise Payne and Defence Minister Peter Dutton were contacted for comment.

The base will increase the risk of confrontation between the US and China as Beijing ramps up its competition with Washington, threatens Taiwan’s airspace and refuses to condemn Russia’s invasion of Ukraine.

The Chinese embassy in Canberra was contacted for comment.

06/03/2022

Ukraine- a Perspective

6 March 2022

Putin had said that he would not invade, so clearly he was lying.

It may be true that Russia wants buffer states between it and Western Europe and this is why it demanded from the US that Ukraine never be allowed into NATO.

It is also true that the US promised Russia as its empire collapsed in 1990 that the newly independent countries would not be allowed to join NATO and that NATO would not move eastward.

Of course the countries that had just escaped from the Soviet Union wanted a security guarantee by to joining NATO. NATO did not have to approach them, and may have appeared cowardly not to offer them the protection that they sought. Whether NATO could defend Estonia against a Russian land-based approach is another question. It is likely that NATO would not have let Ukraine join, as being surrounded by Russia on three sides, it might have been considered indefensible.

From a Russian point of view, the presence of close US bases is very disturbing and they are now in Bulgaria and Kyrgyzstan. One of Russia’s major demands was that there be a buffer zone between it and the West. The history is relevant. Russia has had the armies of Napoleon and Hitler sweep across their land where there are no natural barriers. By the same token, they swept the Germans back in WW2 and retained part of Germany and all of Poland Romania, Bulgaria, Moldova, Czechoslavakia and the Baltic States of Estonia, Latvia and Lithuania. They kept them, dropping the ‘Iron Curtain’ and engaging in the ‘Cold War’ until the inefficiency of their communist economy made it crumble, leading to the collapse of the USSR, Russia’s empire.

The Russian economy is now the 11^th in the world with GDP of $1.6 trillion, only two places ahead of Australia on $1.4, (with Spain in between). They have however, the legacy of the immense military power and high military and space technology, and the memories of Empire that must be very important to Putin, the Cold War warrior who used to head the KGB. Whether Putin is motivated by fear of the West, dreams of recreating the Russian Empire, difficulties in domestic politics or deluded foreign intelligence reports seems hard to say. It is unlikely that just promising that the Ukraine would not be in NATO would probably not have stopped the invasion, but Russia was treated with a contempt that must have rankled. The Eastern European Countries joined NATO, which must have seemed in danger of irrelevance if peace had reigned. Russia’s worries about encirclement were ignored, presumably because it was assumed that there was nothing that they could do about it and they were economically weak.

It is interesting to look at Western assumptions since WW2. Because both world wars were over access to markets, the pressure at the Bretton Wood conference in 1944 was to have free markets so that if countries traded well they would rise, and if poorly they would fall, but either way, there was no world war. Germany and Japan rose in this system. The US, which was responsible for 40% of world GDP in 1960 has been quietly sinking and is now only 24%. Much of their manufacturing has gone offshore so the arms industry has greater significance. The US have had ownership of major companies, but as these have become global they are not under control or fully taxed by any country. The US has been the only superpower since the collapse of the Soviet Union and has had an assumed superiority, which is helped by the fact that as the US Dollar is the world’s currency and since the Gold standard was abolished in 1980, they can simply print more money.

The key Western assumption after Bretton Woods was that major powers would trade and hence territorial wars would be unnecessary. Just as the medieval folk assumed that God would fix everything, the West largely assumed that having the world a market would fix things. Unsurprisingly this has proved too simplistic. Unfair trade, national and corporate predatory behaviour and the ability of some to set prices better than others has led to some countries becoming poorer as their assets are stripped, like the losers in a Monopoly game that never ends. The assumption that no countries wanted empires stood in ironic contrast to the behaviour of the US, which has had many little wars to further its interests, not to mention Russia and China.

Germany is worthy of mention here. It was punished by the Treaty of Versailles at the end of WW1 and the resentment and economic hardship led to the rise of Hitler and WW2. After WW2 the Allies had learned their lesson and the US aid of the Marshall Plan poured in to stop communism. Germany was rebuilt and joined its traditional enemy France to form the EU, which it then dominated. Internal EU trade made war extremely unlikely, though there is a still significant friction in the Balkans. Germany went one step further, getting gas from Russia, which creates a mutual inter-dependency, which was assumed to make war less likely.

But when Russia collapsed in 1990 due to uncompetitive nature of its industries and it consequent foreign trade problems, it received no sympathy, and no aid. Predatory capitalism bought assets at rock bottom prices from those within the power structure who had power to sell them, and organised crime was significant. Putin, an ex-KGB chief took the trouble to become personally rich, but moved in to control the oligarchs, lessen corruption, get foreign capital and industries and develop oil and gas. His deal with the oligarchs was basically to control them somewhat, but let them keep their money as long as they did not get into politics. Per capita GDP in Russia has risen 385% since 2000 as against the EU’s 162%, helped by high oil and gas prices in the early years. But Russian per capital income is still $US28,219 a year as opposed to the EU average of $US41, 539. Russia has also had an inflation rate almost double the EU, which has somewhat taken the gloss off the wage rise.

Putin himself is still a Cold War warrior, who resents Russia’s loss of power. He has eliminated dissident voices in his immediate circle, and so the advice he gets may be quite distorted. There were stories from the Communist period that Russian intelligence was skewed to favour a Kremlin faction who might reward the source of the intelligence. The pro-Russian nature of the Donbas region provinces of Donetsk and Luhansk and of Crimea may have led Putin to believe that Ukrainians either wanted to join Russia, or would accept it relatively easily if it happened. He had marched into Georgia, taken the countryside easily and the people had given little resistance. The referenda in Donetsk and Luhansk in May 2021, which were highly controversial in their legitimacy and execution because of both separatist and Ukrainian army violence, may have also given him reason for his belief.

Russia has 146 million people Ukraine 44 million, so taking over the country and occupying it will be extremely difficult even if military victory is achieved. Bombarding residential areas was done by the Russian in Syria and achieved victory there, but the Russians left the local Dictator, Assad, to deal with the consequences. Assad’s humanitarian record is appalling, and there has been little publicity about the outcome. But the Ukrainians are the same ethnic stock as Russia and such a traumatic victory is very unlikely to achieve a stable transition of government if Russia chooses to stay.

The role of the US has been criticised. They have been keen for NATO to take a hard line, broke their word in NATO’s eastward extension, put bases in Bulgaria and Kyrgyzstan and dismissed Putin’s request for a promise not to offer Ukraine membership, saying it was a Ukrainian decision. A harder line from NATO will help US arms sales, a disruption of oil and gas will favour their own industries, and after all they are separated from any problems by the Atlantic Ocean.

The Germans are having a major re-think on their priorities, as they rely on Russian gas for 15% of their generation. They were phasing out nuclear power since Fukushima in 2011, and like many other countries are a little delayed in the difficult switch to renewable power. A power shortage is likely to affect their industrial competitiveness and they are now signing up to the US demand for 2% of national income to be spent on arms.

China is likely to help Russia as it can turn it into a vassal state. The Chinese economy is $17 trillion, which is roughly ten times the Russian one, so the cost of bailing them out by buying their energy and wheat is really only small change. They will take a bit of criticism from the rest of the world, but it will be worth it. They will continue to work with the Russians to lessen the power of the US dollar as the world’s currency. They will see how much Russia has suffered financially and in reputation from the invasion, and may then ease up on Taiwan- after all they only have to wait until a pro-Beijing government gets power there, and if that takes 30 years, so be it- they can afford to wait. They harbour historical resentments against the West as Russia does, so with an economy ten times the size of Russia and growing have a capacity that Russia lacks. This remains a problem. They have consolidated Tibet and the Xinjiang Uyghur Autonomous Region and are expanding the area they control in the South China Sea. What they will conclude from Putin’s Ukraine adventure remains in the realm of speculation.

The rise in gas prices should help Australian producers, but it will take a long time to scale up to meet the demand, and shipping is a problem. The other problem that the Australian gas industry has is that they sold gas on the assumption that could frack large parts of Australia, and resistance from groups concerned about the effect of this on the water table and farming has made this gas less available, so they have already have trouble meeting their contracted obligations.

So what are the effects of the Ukraine invasion likely to be?

Putin will be very reluctant to stop and is likely to kill a lot of civilians in his efforts to save face and win. This is tragic for the people of Ukraine and will result in a lot of refugees. If he tries to hold Ukraine against a widely supported insurgency there will be a large number of Russian casualties continuing. The Afghan war led to the fall of the then Russian government and many believe that even with the worst repression Putin will not survive this folly, particularly as he has created a Europe much more united against him and sanctions that will be significant for the Russian people. An assumption is that he cannot reactivate the Gulag system of Stalin in this day and age, but a number of our other assumptions seem to have been wrong.

As stated above Russian and China will become closer and China will redouble its efforts to undermine the US dollar as the world’s currency. This will succeed eventually, but will be gradual and not necessarily a problem for us.

In the short-term we need to help the Ukrainians as much as reasonably possible.

24/02/2022

Loneliness and its solutions

25 February 2022

I sometimes watch Foreign Correspondent on ABC TV and by chance on 15/2/21 I came across this excellent programme on loneliness in Japan.

The ABC correspondent there looks at loneliness in the Japanese population from older folk dying alone, to younger people simply withdrawing from society.

Some of the older ones had no family or jobs. Some of the younger ones were so pressured to succeed and felt that they had failed, so simply withdrew from society. It seems that the pressure on kids all to be CEOs is an absurd and unachievable objective.

I am not sure that the situation in Australia is as bad, but I thought about some of my patients and could think of half a dozen immediately. With some of them , I am one of the only two or three people in the world they have any contact with, their relationships are tenuous.

None of them started with mental health problems. Here are some examples:

A 60 year old man worked for a security company looking after an insurance company. He was doing surveillance for them, but it took over his life as he was contacted 24 hours a day for various crises. Case management employees having conscience over what they were doing had to be rescued from self-harm in the toilets. Enraged claimants with refused claims threatened to blow up the company offices with cans of petrol. He saw staff high-fiveing as some claimant got a derisory settlement when they deserved and needed a lot more. It went on like this for years. When he said that he could not do this anymore he was treated as badly as any of the people he had dealt with. He told me this story, and I had hoped that with his considerable management skills and experience, he could be put into a less stressful position. But he deteriorated. Everything reminds him of the corruption of the world. He is estranged from his wife and they communicate with post-it notes on the frig. He goes for a walk at 11 at night so he will not have to speak to people in the street. One son has stuck by him and visits daily, and will build him a self-contained unit in his new home.

Another patient is a 62 year old ethnic taxi driver who was so badly bashed 11 years ago by a gang stealing his takings that he lost an eye, has never worked again and never recovered mentally or physically. He was divorced; lives alone and sometimes will not even answer the phone.

One is a 42 year old foreign student who came to study theology, wanting to become a pastor. Her English is not great. She is a trifle unworldly, and thought that the world is basically kind and people look after each other. She had a casual job in a motel and her boss asked her to move a bed down the stairs between floors. She said it was too heavy and she could not, but he threatened to sack her. She did it and got an injury to two discs in her back. She was frightened to have surgery, so was in agony for a couple of years and eventually agreed. She had minimal surgery, which was not successful. The insurer decided that she was not complying with what they wanted so refused to pay her. She was effectively broke and homeless, so an old lady from her church offered her a bed and food. But she lives a long way away and up a drive that is hard for my patient to walk up. She was effectively trapped. As a foreign person she did not even have Medicare for the minimal psychological help it offers (6 visits a year). Her mental health deteriorated and she shunned all outside contact, and would not even answer the phone. She has gone home to her family- I can only hope she improves there.

One is a 39 year old from a religious and teetotal family with a high sense of ethics. He was a top salesman of a computer company and became aware that they were ripping off some customers. He drew this to management’s attention, but they declined to do anything and he was labelled a whistleblower. Management supported him by putting out an email asking that he be supported for his mental health issues. He felt that this ostracisation was the end of his career, because he had asked them to behave ethically. He was certain that no one in his tight top group will now employ him, so he withdrew and started to drink to lessen the pain. His family then rejected him because of the drinking and his sales friends are estranged also. The psychologist gives him Cognitive Behavioural Therapy exercises and I try to get him to drink less and somewhat ironically counsel him that you cannot withdraw from the world merely because the baddies generally win. He lives alone, answers the phone and is just able to do his own shopping, but is not improving much.

These are just some examples that I know. Coasting home as GP at least keeps you in contact with life. The point is that many people have broken lives, but just keep living. None of these examples have done anything wrong themselves. Is a sense of ethics a mental illness?

As everyone has to ‘look after themselves’ in a consumer-oriented society, more people will fall through the cracks, especially as the gap between rich and poor is enlarged by pork barrelling which puts resources into areas that need them less, tax breaks for the rich, subsidies for private schools and private health insurance, derisory welfare payments, and insurers allowed simply to refuse to pay without penalty.

People need basic support with universal housing and universal health case. They need jobs or at least occupations and an adequate income to survive. And we need outreach and support services that can be called upon.
When people say, ‘There are not enough jobs’, they are taking nonsense. Anyone can think of many worthwhile things that need doing. And there are plenty of people who would be happy to do them. The problem is that in a world where nothing can be done that does not make a profit, a lot of things that need doing are not done. That is where the policy change are needed. We cannot simply look at the money and see to what level existing activities can be maintained. We need to look at what needs to be done, and then work out how to achieve it. We need to decide that everyone has a right to live and those who have a good life will live in a better society if everyone can share at least a basic quality of life. There has to be recognition that the ability to be profitable need not be the overwhelming criterion for what is done. Tax may go up, but if there is real re-think of priorities, it is not likely to be all that much.

The link to the ABC program that initiated this tirade is below.
https://iview.abc.net.au/show/foreign-correspondent/series/2022/video/NC2210H002S00

17/02/2022

AUKUS Protest Letter- Please sign

17 February 2022

The AUKUS submarine deal is bad for Australia on many fronts.

It is bad financially as the submarines are very expensive, so we will have a lot less of them. It is bad in that they will not be available for a long time, so we will be short in the meantime.

It is of course bad environmentally as if/when nuclear submarines are sunk there will be radio activity released at random locations around the world. Technologically nuclear submarines may be more vulnerable than at first thought. Because the nuclear reactors produce heat, they raise the water temperature, which can be detected by satellites. How vulnerable this makes them remains to be tested in practice.

These nuclear submarines are long-range attack submarines, which the US have to project power- read attack Chinese shipping. We do not want to attack China, so they are not appropriate for us. We need defence submarines to operate in our more local area.

Once we have the submarines, whenever that is, we will have to build a base for them, which the US will want to use. So we will be paying for a base that makes us a nuclear target principally for the Americans’ interest. We will be locked into the US global military system.

In reality, there are now two world powers. One is rising, and one is fading. Our major trading partner, China is rising, and the other, the US, is spending far too much on military hubris, neglecting its domestic problems and its wage structure has made its industries uncompetitive. Its military-industrial complex seems to want to create tensions to sell arms, which the US economy subsidises and now relies on. This is not a good economic model for the world. For Australia to hitch its fortunes to fantasies of bygone hegemony is foolish indeed.

China is extremely unlikely to ‘invade’ Australia. They are on the east end of the world’s greatest land mass and are building the belt and road initiative to get to the markets of both Asia and Europe. Australia is a quarry and a food source and provided we trade fairly they have no need for geographical expansion down here. If they were to attack us, the US would look at its options and decide whether it could possible defend us and at what cost, and that would happen in a global context, not due to some sentimental or historic tie. We should remember what happened in WW2 when we were threatened and appealed to Britain. They sent two token battleships which were promptly sunk by Japanese aircraft off Singapore, said they would take us back when they had beaten the Germans, and declined to give us back the troops that we had in North Africa. East Timor was invaded the week after the US Secretary of State had visited Jakarta. It is extremely unlikely that the US did not agree not to interfere; they were playing a global game as might have been expected. Sorry East Timor. Sorry Australia?

On the submarines, the US got a good deal. Australia signed up for inappropriate vessels at some future date at some yet unknown price, and will have to build a base that the US can use. The British had a little glimpse of being a world colonial power again, which must have delighted the fantasies of Boris Johnson, who thinks he is the reincarnation of Winston Churchill. Australia upset the French, upset the Chinese, upset the Indonesians, locked ourselves into a dangerous alliance against our major trading partner, signed a blank cheque, and hugely restricted our future policy options, but gave Mr Morrison a few good headlines when he was looking bad politically. It was another milestone in the triumph of hubris and lobbying over sensible policy.

Since Australia already has a bad reputation for tearing up submarine contracts, we might as well use this reputation to tear up the AUKUS one. The only hope is that Labor, having won the election by being hopelessly timid, might actually be brave enough to look at the situation afresh.

Please sign the petition below.

https://openletter.earth/aukus-for-war-or-australians-for-peace-e21f6607?fbclid=IwAR0698GDGSCUg2_Vt5vVslpEs8n4oDdNGGYXqxde-i89X5Yeag1p37TlF2Q

06/02/2022

Will Russia Invade Ukraine?

6 February 2022

Probably not, but it is possible and they are likely to take some action.

The collapse of the Soviet Union in 1989 was largely due to their economy being unable to compete with more efficient market-based ones. But US Secretary of State James Baker in 1990 promised Mikhail Gorbachev of Russia that NATO would not expand eastwards.

The Eastern European countries were effectively given independence. Their attitudes varied. The Baltic countries, Lithuania, Latvia and Estonia were very keen to have protection. Poland, which was abolished as a nation in WW2, simply being divided in half and incorporated into Russia and Germany by the Molotov-Ribbentrop Pact of 1939 was also looking for protection.

NATO, led by the US has been joining up countries so that only the two closest to Russia, Belarus and Ukraine have not joined. Now the US is now loudly proclaiming Ukraine’s ‘right’ to join NATO if it chooses. The US has a lot of hubris, a tin ear, an arms lobby that needs sales and a recent history of doing what it likes. It has also installed military facilities in some of the countries closet to Russia. Those with long memories may recall the Cuban missile crisis of 1961 when Russia tried to station missiles there and there was a major confrontation. The US has bases all over the world encircling its rivals. The Russians do not, and when they tried to these was a major confrontation. One can also note that there are no natural barriers to military advances in Europe. Napoleon and Hitler swept across Russia and Russia swept them back.

Ukraine, the former ‘breadbasket’ of the Soviet Union is the closest big country to Russia and also could control Russian access to the Black Sea so has special significance. Internally it has quite a varied attitude to Russia. Those in the Eastern part of the country are very pro-Russia, while those in the West would like more integration with Western Europe. There is a succession movement in Donbass, an eastern province, and Russia is accused of helping the separatists. The capital, Kiev, is on the Dnieper river, which bisects the country from north to south, just downstream of Chernobyl. In 2014 there was a coup which was shown to be CIA-supported. The Parliament was invaded, much like the US on 6 Jan 2021, but in Ukraine’s case the President fled and new government was installed, highly favourable to the US. Russia responded by annexing the Crimean peninsula, which has their key naval base in the Black Sea. It might be noted that in a plebiscite a huge majority of Crimeans supported Russia against Ukraine.

In an interview on 7.30 on 1/2/22 Russian journalist Vladimir Pozner pointed out the US hypocrisy on NATO membership. He also pointed out that Russia does not want to invade. There would be Western sanctions, but Russia would also be stuck with a guerrilla war situation having to suppress part of what they occupied perhaps indefinitely. They cannot count on being welcomed even into eastern Ukraine. Invading armies usually are not. They would lose a lot of face internationally and there would be trouble on side or another in selling their gas to Western Europe.

It might be overlooked with all the US statements on Ukraine that Germany, France and Italy, surely the heavyweights of Europe, have been very silent. Germany has decommissioned its nuclear plants, cut down on coal and now gets a third of its energy from Russian gas. It cannot replace that amount of energy in the short-term. They are very aware of what a war in Europe means. Europe is more economically integrated and in general, this is good thing.

Russia will be supported by China if the sanctions start to bite, and the US dollar is gradually becoming less important as a world currency, a trend that the Chinese are working hard to accelerate.Even the Ukrainian President is now on record saying that the US must take much of the blame for the current situation.

It seems that the US arms industry, which has spent decades having little wars to keep itself at the centre of that fading economy is lost in its own hubris. It sees this merely as an opportunity to sell arms to the Ukrainians. It is a market, and an economic game. The Russians have existential concerns, not to mention the loss of face. They are likely to take some action. Diplomacy needs to work and the US has to be restrained. Finland has lived on the Russian border for many years as a democracy that minded its Ps and Qs. The Ukraine should probably do the same.

Press stunned as Ukraine leader points finger at West

04/01/2022

The Chinese Way

4 January 2022

Everyone want to criticise China as an authoritarian state, but if you stand back and look at how they tackle challenges that we have, there may be lessons to be learned.

There was an interesting show on ABC TV last night hosted by Hamish Macdonald ‘The China Century’, Part 1 of 5. It looked at the Tiananmen Square protests of 1989 and their ruthless repression. But next week it will look at how they have combined capitalism and strong state control.

Competition increase efficiency when it lowers prices, but note in the late stage of ‘laissez faire’ monopolies allow supernormal profits and their political influence puts them above the law. Sometimes the loss of central control may also mean that a fragmented industry cannot produce state of the art products. I read some time ago that the US is having a problem producing good fighter planes because the intellectual property is now spread over a number of competing companies, so no one company can be state of the art on all aspects. A single body controlling the situation would not have this problem.

The other aspect is that the Chinese can write the rules for its industries and not simply assume that whatever makes the most profit in the immediate term is the best place to consume resources.

In Australia, our economy is totally out of whack because the tax concession of negative gearing has meant that everyone has simply invested in real estate as a ‘no brainer’ way of making money. But the rise in prices is in a sense arbitrary. If a house goes up in price from $100k to a million, it is still the same house. The difference is that the person who now buys it has $million debt. The ‘profit’ is someone else’s borrowing. So at a national level, we have the second highest level of private debt in the world (after Switzerland) and just pay interest to foreign banks. We also have no money to invest in our productive export industries, or even think about them as real estate is so easy. We note that developers distort the electoral process and do dodgy deals to get their approvals through, but once it is all done, we wring our hands- nothing can be done. The building stands, and it will all happen again next time.

We watch askance as our regulatory systems fail. The Banking Royal Commission was initiated by a whistle-blower not the regulator, and nothing much has changed; one banker resignation, no one charged. We saw the Aged Care inquiry, the Casino Inquiry were both whistle-blower initiated as well. We are up to 4 inquiries into iCare and nothing changes. We hope that our buildings are OK, as the regulatory system has not been working too well there for about 25 years.

We note that our rich are getting much richer and our poor poorer, but our government does not want to do much about that. Hey if you can’t afford a Rapid Antigen Test, you can always wait and see if get sick. ‘Universal health care’ is a good slogan.

We see our kids getting fatter and more addicted to computer games, but there is not much we can do about that. We are moving to high rise schools as so many were sold off in the 1980s and now there is no space for recreation, and we also saved on sport teachers and made serious exercise optional.

We worry that our electoral system is influenced by fake news, trolls and data analysis companies. We understand that the social media concentrates on putting like people together so they will stay logged in and be available to advertise to. We understand that a shock headline also attracts more interest and controversy, so we are hyper stimulated until we ignore what is important. Advertising always affected media content towards making people more receptive to the ads and purchasing; social media has now put it on steroids.

The Chinese have taken all this on. They have put a super tax on rich people and made statements about everyone having a decent life. They have tried to lessen kids times on computers and to increase their exercise. They have taken on social media, and most recently forced a major developer to demolish high rise building because the building permit was illegally obtained. The developer is a major one, and already in danger of going broke. Can anyone image this happening in Australia or the US?

Many problems in the world are universal, and watching what a truly authoritarian government can do is interesting. We have the contrast of our governments, that seem to want to be as small as possible and not even acknowledge problems, and theirs which seems to testing the limits of power. We may not want to do it ourselves, but if we ever decide to do anything, it will be helpful to have information on the outcome of the range of possible actions.

Here is an article about Evergrande, the Chinese property developer which is going broke and now had to demolish significant assets. It was in the SMH, from Bloomberg.

Next Monday on ABC TV at 8.30pm the second article on China, considering its use of the combination of capitalism and central control.

China’s Evergrande halts trading after ordered to tear down apartments

By Jan Dahinten

January 3, 2022 — 3.29pm

Chinese developer shares tumbled following local media reports that China Evergrande Group has been ordered to tear down apartment blocks in a development in Hainan province. Evergrande halted trading in its shares.

An index of Chinese developer shares slumped 2.8 per cent as of 11.37 a.m. local time, with Sunac China Holdings and Shimao Group Holdings plunging more than 10 per cent. A local government in Hainan told Evergrande to demolish 39 buildings in 10 days because the building permit was illegally obtained, news wire Cailian reported on Saturday.

Evergrande gave no details on the trading suspension other than saying it would make an announcement containing inside information.

The government of Danzhou, a prefecture-level city in the southern Chinese province of Hainan, asked Evergrande to tear down 39 illegal buildings in 10 days, Cailian reported on Sunday, citing a document from the local government.

The report cited the document, which was dated December 30, as saying that the Danzhou government said an illegally obtained permit for the buildings had been revoked so the buildings need to be dismantled.

Evergrande didn’t immediately respond to a request seeking comment and calls to Danzhou authorities went unanswered on a public holiday in China on Monday.

The company on Friday dialed back payment plans on billions of dollars of overdue wealth management products as its liquidity crisis showed little sign of easing.

Property firms have mounting bills to pay in January and shrinking options to raise necessary funds. The industry will need to find at least $US197 billion ($271 billion) to cover maturing bonds, coupons, trust products and deferred wages to millions of migrant workers, according to Bloomberg calculations and analyst estimates.

Beijing has urged builders like China Evergrande Group to meet payrolls by month-end in order to avoid the risk of social unrest.

Contracted sales for 31 listed developers fell 26 per cent in December from a year earlier, according to Citigroup Inc. analysts. Evergrande’s sales dropped 99 per cent, the analysts wrote in a note dated Sunday.

Bloomberg

04/11/2021

Australia at Glasgow COP26

4 November 2021

Just when you think it could not get any worse- it does. There has been relatively little about Australia’s appearance and presentation at the Glasgow climate summit and the reaction to it; the media being preoccupied with the fact that President Macron of France called Scott Morrison a liar, and chasing abducted Cleo Smith in WA.

Australia has had a SANTOS stall at its exhibition at the Glasgow Climate Summit. Santos is spruiking its carbon capture and storage, subsidised by guess who? You and me as taxpayers, facilitated by Energy Minister Angus Taylor who is charged up with a $2.3 million donation from Santos to the Liberal Party.

Carbon capture is a complete nonsense. Coal is more or less solid carbon. To do some basic chemistry, a mole of carbon weighs 12gm and occupies 5.3 cubic centimetres. When it combines with oxygen it weighs 44gm and becomes CO2, a gas which takes up 22.4 litres which is 22,400 cubic centimetres or 422.6 times the volume of the original carbon at atmospheric pressure. To capture the CO2, and then compress and store it will almost certainly take more energy than was released in burning it. To halve the volume of a gas, you have to double the pressure, which takes 101 Joules of energy per litre per atmosphere. The carbon dioxide is also able to penetrate barriers, such as going through solid concrete, and the sites suggested for the carbon storage are at 31 degrees, when carbon dioxide does not become a solid until minus 78 degrees. So the whole process cannot be economic or sensible, and no ‘technology’ will make it so.

Everything in the above paragraph is high school chemistry, so no great knowledge is required here. Only those venal or wilfully ignorant can dispute this. How the myth of Carbon Capture and Storage can still be peddled is beyond belief, excepting the explanation attributed to Napoleon, ‘In politics, absurdity is no impediment’.

The fact that Australia could have a Santos stall in its display in Glasgow shows the extent to which the Morrison government is willing to make us an international laughing stock for the sake of their $23 million, not to mention the subsidies, the greenhouse effects and the delays caused by this policy.

The other quote that seems apposite is Greta Thunberg’s, ‘Blah, blah, blah’.

www.theguardian.com/australia-news/2021/nov/03/australia-puts-fossil-fuel-company-front-and-centre-at-cop26?fbclid=IwAR3x1hmLa5dbh7nJ8i_IFx8PyZEAyzSIuIeJVMQOlZfLQfY0-nt9wXE1Wgs