Canadian Prime Minister Justin Trudeau became the first leader to publicly say that his country’s intelligence officials had listened to an audio recording that Turkish officials say is evidence that the journalist Jamal Khashoggi was killed by Saudi operatives... “On October 24, a representative of the French intelligence has listened to the audio recording and detailed information including a transcript of said audio,” Fahrettin Altun, communications director of the Turkish presidency, told Agence France-Presse, according to Turkish officials. “If there is miscommunication between the French government’s various agencies, it is up to the French authorities, not Turkey, to take care of that problem.”.. Canada’s diplomatic relationship with Saudi Arabia has been strained since August, when Saudi Arabia downgraded ties between the two countries after Canada’s foreign ministry sent a tweet calling on the kingdom to immediately release human-rights activists who had been jailed. Saudi Arabia said it viewed the remarks, which were also translated into Arabic, as an unacceptable interference in its internal affairs. It expelled Canada’s ambassador to the kingdom and instructed thousands of Saudi students who were studying in Canada to leave the country.The diplomatic spat hasn’t affected a $10 billion deal, agreed to in 2014, to ship hundreds of armored vehicles from a Canadian subsidiary of General Dynamics Corp. to Saudi Arabia.
That crashing sound you heard in world markets last week wasn’t just a correction. It was the sound of the end of an age.
During the long era of relatively stable international relations that succeeded the Cold War, markets enjoyed an environment uniquely conducive to economic growth.
.. The results were extraordinary. Between 1990 and 2017, world-wide gross domestic product rose from $23.4 trillion to $80.1 trillion, the value of world trade grew even faster, more than a billion people escaped poverty, and infant-mortality rates decreased by more than 50%. The number of people with telephone service grew roughly 10-fold.
This hiatus from history was, by most measures of human flourishing, a glorious era. Now it has come to an end, or at least a pause, and the world is beginning to see what that means.
.. the basic elements of economic globalization appeared firmly in place.
- Russia, the most obvious challenger to the geopolitical order, was an insignificant and diminishing player economically.
- And China, notwithstanding its rapid economic growth and its anxiety about American military power, was unlikely to challenge the economic basis of its own success. Geopolitics might have been back, but that wasn’t an issue for markets.
That complacency was misplaced. The return of geopolitics means the basic framework for economic policy has changed. In periods of great-power rivalry, national leaders must often put geopolitical goals ahead of economic ones. Bismarck’s Germany could have saved money buying armaments from Britain, but building a domestic arms industry was worth the cost. If the U.S. is in a serious strategic competition with China, an American president might well be willing to sacrifice some economic growth to banish China from important supply chains.
,, by invoking “national security,” the Trump administration has found a legal basis, with roots in the Cold War and even earlier, to assert sweeping powers over the nation’s commerce. It has upended a generation of U.S. trade policy in a dramatically short period of time.
.. The new era of geopolitics is unlikely to be an era of small government.
.. The Trump administration is
- reversing some of the regulatory excesses of the Obama era, and
- the president’s judicial appointees are prepared to rein in the administrative state.
.. A recalibration of the U.S.-China relationship was likely inevitable as the world’s oldest civilization became an economic superpower.
Hillary Clinton, who as secretary of state clashed with Mr. Obama over the need for a tougher approach to China, would not be a popular figure in Beijing if she had won the 2016 election.
Trump’s rationale for going easy on Saudi Arabia is a shameful lie.
A few days ago, Pat Robertson, the evangelical leader, urged America not to get too worked up about the torture and murder of Jamal Khashoggi, because we shouldn’t endanger “$100 billion in arms sales.” I guess he was invoking the little-known 11th Commandment, which says, “On the other hand, thou shalt excuse stuff like killing and bearing false witness if weapons deals are at stake.”
O.K., it’s not news that the religious right has prostrated itself at Donald Trump’s feet. But Trump’s attempt to head off retaliation for Saudi crimes by claiming that there are big economic rewards to staying friendly with killers — and the willingness of his political allies to embrace his logic — nonetheless represents a new stage in the debasement of America.
It looks unlikely, then, that deals with Saudi Arabia will raise U.S. annual arms exports by more than a few billion dollars a year. When you bear in mind that the industries involved, mainly aerospace, are highly capital intensive and don’t employ many workers per dollar of sales, the number of U.S. jobs involved is surely in the tens of thousands, if that, not hundreds of thousands. That is, we’re talking about a rounding error in a U.S. labor market that employs almost 150 million workers.
Another way to look at Saudi arms sales is to notice how small the stakes are compared with other areas where Trump is casually disrupting business relations. He seems, for example, to be eager for a trade war with China, which imported $187 billion worth of U.S. goods and services last year.
.. Because the Federal Reserve believes that we’re at full employment, and any further strengthening of the economy will induce the Fed to raise interest rates. As a result, jobs added in one place by things like arms sales will be offset by jobs lost elsewhere as higher rates deter investment or make the U.S. less competitive by strengthening the dollar.
.. what we’re looking at here is another step in the debasement of our nation.
- Accepting torture and murder is a betrayal of American principles;
- trying to justify that betrayal by appealing to supposed economic benefits is a further betrayal.
And when you add in the fact that the claimed economic payoff is a lie, and that the president’s personal profit is a much more likely explanation for his actions — well, genuine patriots should be deeply ashamed of what we’ve come to as a nation.
The US-Saudi relationship has been a rocky one, and its setbacks and scandals have mostly played out away from the public eye. This time, too, common interests and mutual dependence will almost certainly prevail over the desire to hold the Saudis to the standards expected of other close US allies... But significant damage to bilateral ties, let alone a diplomatic rupture, is not in the cards, even if all the evidence points to a state-sanctioned assassination. Saudi Arabia is simply too crucial to US interests to allow the death of one man to affect the relationship. And with new allies working with old lobbyists to stem the damage, it is unlikely that the episode will lead to anything more than a lovers’ quarrel... Saudi Arabia’s special role in American foreign policy is a lesson that US presidents learn only with experience. When Bill Clinton assumed the presidency, his advisers were bent on distancing the new administration from George H.W. Bush’s policies. Among the changes sought by Clinton’s national security adviser, Anthony Lake, was an end to the unfettered White House access that Saudi Arabian Ambassador Bandar bin Sultan enjoyed during the Reagan and Bush presidencies. Bandar was to be treated like any other ambassador... when Clinton needed a quote from the Koran to go alongside those from the Old and New Testament for a ceremony marking an Israeli-Palestinian accord, he turned to the Saudi ambassador... Before Donald Trump assumed office, he frequently bashed the Saudis and threatened to cease oil purchases from the Kingdom, grouping them with freeloaders who had taken advantage of America. But after the Saudis feted him with sword dances and bestowed on him the highest civilian award when he visited the Kingdom on his first trip abroad as US president, he changed his tune... Even the terror attacks of September 11, 2001, could not damage the relationship. Though al-Qaeda leader Osama bin Laden, himself a Saudi national, recruited 15 of the 19 hijackers from the Kingdom, senior Saudi officials dismissed the implications. In a November 2002 interview, the Saudi interior minister simply deemed it “impossible,” before attempting to redirect blame by accusing Jews of “exploiting” the attacks and accusing the Israeli intelligence services of having relationships with terrorist organizations... Bandar provided key insights and advice as President George W. Bush planned the 2003 Iraq invasion.
.. But Saudi Arabia wears too many hats for America to abandon it easily. Though the US no longer needs Saudi oil, thanks to its shale reserves,
- it does need the Kingdom to regulate production and thereby stabilize markets.
- American defense contractors are dependent on the billions the Kingdom spends on military hardware.
- Intelligence cooperation is crucial to ferreting out jihadists and thwarting their plots. But, most important,
- Saudi Arabia is the leading Arab bulwark against Iranian expansionism. The Kingdom has supported proxies in Lebanon, Syria, and Yemen to contain Iran’s machinations. Any steps to hold the Saudis responsible for Khashoggi’s death would force the US to assume responsibilities it is far more comfortable outsourcing.
.. When the United Kingdom, the region’s colonial master and protector, decided that it could no longer afford such financial burdens, US leaders ruled out taking its place. Policymakers were too focused on Vietnam to contemplate action in another theater. Instead, Secretary of State Henry Kissinger conceived a policy whereby Iran and Saudi Arabia, backed by unlimited US military hardware, would police the Gulf. While Iran stopped playing its role following the 1979 Islamic Revolution, the Saudis still do.
.. It is not only defense contractors who are going to bat for the Saudis. Before Khashoggi became Washington’s topic du jour, the Saudis paid about ten lobbying firms no less than $759,000 a month to sing their praises in America’s halls of power.
.. Former Saudi bashers such as Prime Minister Binyamin Netanyahu’s confidant Dore Gold now meet with the Kingdom’s officials. Following the 2013 military coup that toppled Egypt’s democratically elected government, Israeli leaders urged US officials to embrace the generals. They are likely to do the same today if US anti-Saudi sentiment imperils their Iran strategy.
.. in the wake of Khashoggi’s disappearance, common interests and mutual dependence will almost certainly prevail over the desire to hold the Saudis to the standards expected of other close US allies.