Tuesday, June 30, 2009

China Raises Fuel Prices

The FT reports that China has raised fuel prices across the board. Gas is now more expensive in China (about $3 per gallon) than it is in the US. What does it say about the US, when a developing country under recessionary pressures, like China, increases gas prices, while a rich country like the US keeps them low? Europe has kept gas prices high for years by adding taxes of various kinds.

Tom Friedman among many others has been calling for higher gas prices in order to promote other, greener forms of energy, but without success. When gas prices went much higher last summer, although they were still low compared to Europe, it was because of manipulation of the financial market, according to Matt Taibbi in Rolling Stone, not because of any intelligent policy decision.

It looks like the US could at least pursue a policy as sensible as the Chinese, although our policies appear to be controlled by oil and gas and financial interests who are only interested in boosting their profits, not by our national interest.

Elliott Abrams as Ghost and in Person

Elliott Abrams' return to op-ed pages has given me fits. See his WSJ and NYT op-eds. Now the ghost of Iran-Contra is back, although Abrams has now moved from Latin American issues to his real love, Middle East issues, where he is lobbying hard for Israel.

I don't know how Abrams happened to start in Latin America. I'm guessing he got his job as Assistant Secretary for Latin America at the State Department through the connections of his wife's father, Norman Podhoretz, the editor of Commentary, the influential Jewish magazine. I'm guessing Abrams would rather have worked on the Middle East then, but Reagan (or maybe George Shultz) was unwilling to give him that important a job. Thus, he ended up with Latin America, where his main job was to assure that the US pursued a very conservative agenda. Those were the days when the Reagan Administration greatly feared that it was going to be invaded by El Salvador or Nicaragua.

It was Abrams' efforts to shore up right-wing governments in Central America, like the military coup that just took power in Honduras, that led to his involvement in Iran-Contra. It is ironic that Iran and a Central American coup share the top of the news cycle twenty years later. I think things are better in both places, but they still have a long way to go, especially in Iran. I'm not optimistic that significant changes are going to be implemented in Iran as a result of the recent protests. Thinking is changing there, but it will take a long time to bring any concrete changes to fruition, and there is a possibility that things could get worse. There is a lot of talk that on the authoritarian side in Iran, the leadership has moved from being dominated by clerics to being dominated by the military. And the military is back in power in Honduras. The more things change the more they stay the same.

On "Morning Joe" this morning, Mike Barnacle kept asking guests whether the withdrawal of US troops from Iraqi cities meant that a new government that is Saddam-lite might be taking over. The main response seemed to be, "Not now, but who knows what will happen in a few years." Of course, one of the main effects of the US invasion of Iraq has been the strengthening of Iranian influence there. Fareed Zakaria mentioned last Sunday that nobody was paying attention to what Iranian cleric Sistani was doing in Iraq, where he is currently living in Najaf.

Abrams' job as Israeli spokesman and lobbyist is, of course, to do all he can to get the Obama Administration to beat Iran about the head and shoulders.

Thursday, June 25, 2009

Elliott Abrams Is Bank Again

Elliott Abrams has another op-ed, this time in the WSJ. It, of course, goes totally against Tony Judt's op-ed on Israeli settlements. He says the US agreed to the settlements that Obama's administration is now questioning. He's basically saying that George W. Bush was an unpatriotic, cowardly President who was afraid to stand up to the Israelis. Abrams says in effect, "I put words in Bush's mouth recognizing the settlement, and he said them." However, Abrams and Bush failed to bring anything to fruition as a result. Bush kissed Sharon's ass as instructed by Abrams, but no legal document was signed. They failed. The world has moved on. It's like Abrams is trying to enforce the Molotov-Ribbentrop Pact. It's dead. Get over it!

But all these articles about settlements show that the Israelis are genuinely worried. They have obviously told their Israeli agents to go all out to get the US off this settlements kick. They may succeed; Jews have lots of money and power in the US. But at least for a few shining moments the US seems to be pursuing a policy defined by US interests, rather than Israel's. Let Elliot Abrams, Bret Stevens, and the rest of the Likudniks on the WSJ editorial page stew for a little while longer.

MTCR Still Around

The Bulletin of the Atomic Scientists calls for a missile test ban to supplement the Missile Technology Control Regime (MTCR). Interestingly the article puts the MTCR in the context of the Reykjavik Summit, where Richard Perle famously stopped President Reagan from agreeing to sweeping arms control limitations with the Soviets. Perle was also instrumental in limiting the MTCR, mainly by trying to get super strong controls that other countries would not agree to. It was a typical case of the best being the enemy of the good. What we got was worse than if the US had had a more flexible negotiating position.

Anyway, the good news is that the MTCR is still alive and is probably the strongest regime controlling missile proliferation. It could have been stronger, but at least we got something.