Connect with us

International

Is Russia at War With Ukraine, or With the West?

Published

8 minute read

A guest post by

Matt Taibbi and Racket Staff

Subscribe

German Foreign Minister Annalena Baerbock this week, on entering a “new era of nefariousness”:

I say clearly and across the Atlantic, what is right and what is wrong shall never be irrelevant to us. No one wants and no one needs peace more than the Ukrainians and Ukraine. The diplomatic efforts of the U.S. are of course important here. But such a peace must be just and lasting and not just a pause until the next attack… We will never accept a perpetrator-victim reversal. A perpetrator-victim reversal would be… the end of security for the vast majority of countries. And it would be fatal for the future of the United States.

Baerbock’s declaration that a “perpetrator-victim reversal” (a Täteropferumkehr, I’m reliably informed) would be “fatal” to the U.S. was historic. It was accompanied by a promise that “as transatlantacists,” Europeans must “stand up for our own interests, our own values, and our own security.” Although new leaders are ready to take the reins in Germany, she said, there can be no waiting for the transfer of power. Immediately, “Germany must take the lead at this historic milestone.”

A few years ago Baerbock pleaded for patience with a British conservative who demanded to know why Germany wasn’t providing Leopard tanks to Ukraine.

Now, with Donald Trump cutting off weapons deliveries and shutting down access to ATACMS missiles, Baerbock’s speech is an expression of more enthusiastic European support for continued fighting.

The war in Ukraine is often called a proxy conflict between Russia and the West or Russia and the U.S., but it increasingly looks more like a fight between Baerbock’s “transatlanticists” and those who believe in “spheres of influence.” In preparing Racket’s accompanying “Timeline: The War in Ukraine,” I found both sides articulated this idea repeatedly.

In January, 2017, as he was preparing to relinquish his seat to Mike Pence, Joe Biden alluded to the recent election of Donald Trump in a speech at Davos. Describing the “dangerous willingness to revert to political small-mindedness” of “popular movements on both the left and right,” Biden explained:

We hear these voices in the West—but the greatest threats on this front spring from the distinct illiberalism of external actors who equate their success with a fracturing of the liberal international order. We see this in Asia and the Middle East… But I will not mince words. This movement is principally led by Russia.

Biden even then lumped Trump and Putin together, as enemies of the “liberal international order.” Russian counterparts like Putin and Foreign Minister Sergei Lavrov, meanwhile, spoke of a “post-West world order” where diplomatic relations would be based on “sovereignty” and the “national interests of partners.” These are two fundamentally irreconcilable worldviews. Was conflict inevitable, or could peace have held if Russia didn’t strike in 2022?

There’s no question who invaded whom. Hostilities began in February, 2022 with an angry speech by Vladimir Putin and bombs that landed minutes later in Ukraine. Little discussion of the “why” of the war took place in the West, however.

Phrases like “unprovoked aggression” became almost mandatory in Western coveragePolitico interviewed a range of experts and concluded that what Putin wanted was “a revanchist imperialist remaking of the globe to take control of the entire former Soviet space.” This diagnosis of Putin’s invasion as part of a Hitlerian quest for Lebensraum and a broader return to national glory might have merit, but it was also conspicuously uncontested. A differing article by University of Chicago professor John Mearshimer declaring the crisis “the West’s fault” made him, as The New Statesman just put it, “the world’s most hated thinker.” Few went there after.

Russians and Ukrainians don’t have the typical profiles of ancient warring tribes. They have a deeply intertwined history, with citizens of both countries retaining many of the same customs, jokes, and home remedies, while living in the same crumbling Soviet buildings, with fondness for the same cabbage soup and moonshine. There are huge numbers of mixed/bilingual families and many famous cultural figures (including my hero Nikolai Gogol) are claimed by both countries. They’ve fought before, but what jumped out reviewing this “Timeline” is how much it seemed that these old Slavic neighbors mostly fall out now over attitudes toward the West.

It’s hard looking back not to be struck by the superior tone of bodies like the Organization for Security and Co-operation in Europe (OSCE), whose “reviews” of Ukrainian and Russian elections often read like zoological descriptions of inferior species. Same with a tsk-tsking report by a mission of visiting IMF economists in 2013, who were appalled by Ukrainian energy subsidies that were among of the few popular remnants of Soviet life.

These imperious Western assessments of childlike Slavs, and the panic and shame of some local officials before such foreign judgments, recall familiar satires in Russian literature (The Government Inspector comes to mind). Nationalists in both countries balked at this “advice,” and by the late nineties some came to the conclusion that the cost of cooperation with the West was greater than the benefit. These dynamics accelerated after the Orange Revolution in 2004 and the Maidan events of 2013-2014, which Russians still see as a West-backed coup and the beginning of the current war. Russians will say “first blood” was drawn in military operations against Donbass protesters around the same time. Those in the West will point at the 2014 annexation of Crimea as the beginning of territorial war.

The idea of Germany “taking the lead” in a war to secure the primacy of “transatlanticists” worries me more than trying to pronounce Täteropferumkehr. However, whether or not you think Baerbock is right, and a peace deal now would be a worthless “pause,” depends a lot on how you read this history. What do you think, and why?

Subscribe to Racket News. 

For the full experience, become a paying subscriber.

Share

Todayville is a digital media and technology company. We profile unique stories and events in our community. Register and promote your community event for free.

Follow Author

Business

Americans rallying behind Trump’s tariffs

Published on

The Trump administration’s new tariffs are working:

The European Union will delay tariffs on U.S. exports into the trading bloc in response to the imposition of tariffs on European aluminum and steal, a measure announced in February by the White House as a part of an overhaul of the U.S. trade policies.

Instead of taking effect March 12, these tariffs will not apply until “mid-April”, according to a European official interviewed by The Hill.

This is not the first time the EU has responded this way to U.S. tariff measures. It happened already last time Trump was in office. One of the reasons why Brussels is so accommodative is that the European Parliament emphasized negotiations already back in February. Furthermore, as Forbes notes,

The U.S. economy is the largest in the world, and many countries rely on American consumers to buy their goods. By import tariffs, the U.S. can pressure trading partners into more favorable deals and protect domestic industries from unfair competition.

More on unfair competition in a moment. First, it is important to note that Trump did not start this trade skirmish. Please note what IndustryWeek reported back in 2018:

Trump points to U.S. auto exports to Europe, saying they are taxed at a higher rate than European exports to the United States. Here, facts do offer Trump some support: U.S. autos face duties of 10% while European cars are subject to dugies of only 2.5% in the United States.

They also noted some nuances, e.g., that the United States applies a higher tariff on light trucks, presumably to defend the most profitable vehicles rolling out of U.S. based manufacturing plants. Nevertheless, the story that most media outlets do not tell is that Europe has a history of putting tariffs on U.S. exports to a greater extent than tariffs are applied in the opposite direction.

Larson’s Political Economy is a reader-supported publication.

To receive new posts and support my work, consider becoming a free or paid subscriber.

Facts notwithstanding, this trade war has caught media attention and is reaching ridiculous proportions. According to CNBC,

Auto stocks are digesting President Donald Trump’s annoncement that he would place 25% tariffs on “all cars that are not made in the United Sates,” as well as certain automobile parts. … Shares of the “Detroit Three” all fell.

They also explain that GM took a particularly hard beating, and that Ferrari is going to use the tariffs as a reason to raise prices by ten percent. This sounds dramatic, but keep in mind that stocks fly up and down with impressive amplitude; what was lost yesterday can come back with a bonus tomorrow. As for Ferrari, a ten-percent price hike is basically meaningless since these cars are often sold in highly customized, individual negotiations before they are even produced.

Despite the media hype, these tariffs will not last the year. One reason is the retaliatory nature in President Trump’s tariffs, which—again—has already caught the attention of the Europeans and brought them to the negotiation table. We can debate whether or not his tactics are the best in order to create more fair trade terms between the United States and our trading partners, but there is no question that Trump’s methods have caught the attention of the powers that be (which include Mexico and Canada).

There is another reason why I do not see this tariffs tit-for-tat continuing for much longer. The European economy is in bad shape, especially compared to the U.S. economy. With European corporations already signaling increased direct investment in the U.S. economy, Europe is holding the short end of this stick.

But the bad news for the Europeans does not stop there. They are at an intrinsic disadvantage going into a tariffs-based trade war. The EU has a “tariff” of sorts that we do not have, namely the value-added tax, VAT. Shiphub.co has a succinct summary of how the VAT affects trade:

When importing (into the European Union), VAT should be taken into account. … VAT is calculated based on the customs value (the good’s value and transport costs … ) plus the due duty amount.

The term “duty” here, of course, refers to trade tariffs. This means that when tariffs go up, the VAT surcharge goes up as well. Aside from creating a tax-on-tax problem, this also means that the inflationary effect from U.S. imports is significantly stronger than it is on EU imports to the United States—even when tariffs are equal.

If the U.S. government wanted to, they could include the tax-on-tax effect of the VAT when assessing the effective EU tariffs on imports from the United States. This would quickly expand the tit-for-tat tariff war, with Europe at an escalating disadvantage.

For these reasons, I do not see how this “trade war” will continue beyond the summer, but even that is a pessimistic outlook.

Before I close this tariff topic and declare it a weekend, let me also mention that the use of tariffs in trade war is neither a new nor an unusual tactic. Check out this little brochure from the Directorate-General for Trade under the European Commission’:

Trade defence instruments, such as anti-dumping or anti-subsidy duties, are ways of protecting European production against international trade distortions.

What they refer to as “defence instruments” are primarily tariffs on imports. In a separate report the Directorate lists no fewer than 63 trade-war cases where the EU imposes tariffs to punish a country for unfair trade tactics.

Trade what, and what countries, you wonder? Sweet corn from Thailand, fused alumina from China, biodiesel from Argentina and Indonesia, malleable tube fittings from China and Thailand, epoxy resins from China, South Korea, Taiwan, and Thailand… and lots and lots of tableware from China.

Like most people, I would prefer a world without taxes and tariffs, and the closer we can get to zero on either of those, the better. But until we get there, we should take a deep breath in the face of the media hype and trust our president on this one.

Larson’s Political Economy is a reader-supported publication.

To receive new posts and support my work, consider becoming a free or paid subscriber.

Continue Reading

Business

Kennedy to cut 10,000 HHS employees to reduce ‘bureaucratic sprawl’

Published on

From The Center Square

By 

The changes are expected to reduce the agency’s headcount from 82,000 to 62,000 full-time employees.

Robert F. Kennedy Jr. announced a significant restructuring of the U.S. Department of Health and Human Services on Thursday in a move to streamline the huge federal agency and cut costs.

Kennedy plans to trim about 10,000 employees from the agency’s workforce in addition to employees who left as part of a Deferred Resignation Program, similar to a buy out, earlier this year. The move is expected to save about $1.8 billion.

Kennedy said the restructuring won’t affect the agency’s critical services. When combined with HHS’ other efforts, including early retirement, the changes are expected to reduce the agency’s headcount from 82,000 to 62,000 full-time employees. The restructuring will also align the department with Kennedy’s goals for a healthier U.S. population.

“We aren’t just reducing bureaucratic sprawl. We are realigning the organization with its core mission and our new priorities in reversing the chronic disease epidemic,” Kennedy said. “This Department will do more – a lot more – at a lower cost to the taxpayer.”

Kennedy also said the restructuring of the department’s 28 divisions will get rid of redundant units, consolidating them into “15 new divisions, including a new Administration for a Healthy America, or AHA, and will centralize core functions such as Human Resources, Information Technology, Procurement, External Affairs, and Policy.” Regional offices will be reduced from 10 to 5.

The overhaul will implement the new “HHS priority of ending America’s epidemic of chronic illness by focusing on safe, wholesome food, clean water, and the elimination of environmental toxins. These priorities will be reflected in the reorganization of HHS.”

Kennedy also said the restructuring would improve taxpayers’ experience with HHS by making the agency more responsive and efficient. He also said the changes would ensure that Medicare, Medicaid, and other essential health services remain intact.

The Administration for a Healthy America will combine multiple agencies – the Office of the Assistant Secretary for Health, Health Resources and Services Administration, Substance Abuse and Mental Health Services Administration, Agency for Toxic Substances and Disease Registry, and National Institute for Occupational Safety and Health — into a single, unified entity, Kennedy said.

The Centers for Disease Control and Prevention will get the Administration for Strategic Preparedness and Response, which is responsible for national disaster and public health emergency response.

“Over time, bureaucracies like HHS become wasteful and inefficient even when most of their staff are dedicated and competent civil servants,” Kennedy said. “This overhaul will be a win-win for taxpayers and for those that HHS serves.”

Among the cuts: The U.S. Food and Drug Administration will shed about 3,500 full-time employees. Officials said the reduction won’t affect drug, medical device, or food reviewers, nor will it impact inspectors. The CDC will drop about 2,400 employees. The National Institutes of Health will cut about 1,200 employees. The Centers for Medicare & Medicaid Services will cut about 300 employees. The reorganization won’t affect Medicare and Medicaid services, officials said.

Continue Reading

Trending

X