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Putin’s Successor if he is killed soon!

Putin’s Successor if he is killed soon!!

If for some reason Putin unexpectedly dies – for example, he is killed in an aircraft accident (like the president of Iran) – it is worth considering who be the most likely successors.

The Moscow based Minchenko Consulting pyramid list might give us some clues. At the top are three businessmen — Arkady Rotenberg, Gennady Timchenko, Yuri Kovalchuk – who are probably too far removed from the broader Kremlin power structures to be contenders. Sergei Chemezov is a possibility, but would he want the direct responsibilities of president, or would he prefer to be in the background? Prime Minister Mikhail Mishustin would undoubtedly want the job but the “teacher’s pet” might not be seen as tough enough by the security forces. Even the experienced and highly intelligent Georgi Malenkov eventually fell to the more hardline Nikita Khrushchev!

The next row down in the Minchenko list contains Igor Sechin, Sergei Kiriyenko, Dmitry Medvedev, and Moscow Mayor Sergei Sobyanin.

Could Sechin attempt to be a successor to Putin – as Bormann did with Hitler? Sechin is seven years younger than Putin (although photos would suggest he is nowhere near as fit) and it would not be surprising if he wanted the top job if the opportunity arose. If we accept suggestions – by Mark Galeotti and others – that Putin is seeking to nurture a “new generation” of “Putinists” it would be surprising if Putin was to designate Sechin his successor. Moreover, after the May 2024 reshuffle, according to Galeotti, Sechin has become “simply a hydro-carbon baron” and not a clan leader. Kiriyenko and Medvedev would clearly jump at the chance to succeed Putin and Kiriyenko’s position inside the Kremlin would be an advantage – but he would probably be seen a too much of a dilettante. It is hard to conceive of Medvedev being acceptable no matter hard he tries to be a tough guy. Sobyanin presently has a great job and may not want to make a move unless assured that he – and not the siloviki power structures – would be running the country.

The third row in the Minchenko list consisted of Sergei Shoigu and Nikolai Patrushev. Shoigu’s power depends completely on his personal relationship with Putin, and he would not last long as a successor no matter how he got there. Patrushev has much wider connections in the upper echelons of power, is close to Putin, and now has a son – Nikolai Patrushev – who is a Deputy Prime Minister. If there was ever to be a struggle for power in the event of say, the unexpected death of Putin in the near future, Nikolai Patrushev – along with Sechin – would probably be a player. Whether or not this would be a Hua Guofeng / Deng Xiaoping or a Malenkov / Krushchev type struggle would depend on the circumstances.

So, in the event of Putin eventually deciding to nominate a successor, Dyumin would seem to be the most likely choice. In the event that Putin does not get to choose because of his sudden death, Mishustin would emerge at the top for at least an interim period.

Read more in my book:

“PUTIN and his Lieutenants: compared to Mao, Napoleon, Hitler, Mussolini, Stalin, Ataturk” is now available on Amazon:  

https://www.amazon.com.au/gp/product/B0DBGYB3RR

 

Brittany Higgins false rape earned her $2m

Brittany Higgins false rape earned her $2m.

Nary always had this uncanny sense of seeing me if I went near my favorite café next to the river in Phnom Penh and would come up to me with a broad happy smile. About a month ago I saw Nary walking on the road in the opposite direction to me, but she did not seem to recognize me until she was only a couple of meters away. Her face was blank and she showed little of the enthusiasm that I had become used to. I recognized that something was different but I had no idea what. I could not just leave her standing there so I invited her to come to the café with me. When the waitress asked Nary what she wanted, Nary could only mumble a response.

Nary had always told me that she worked as a cook and rented a room not far from the café, while her mother lived on the very outskirts of Phnom Penh about an hour away by “tuktuk” taxi. I felt that Nary was in no condition to be left alone, so I invited her back to my apartment. She went straight to the bathroom, had a shower, and then wrapped herself in a large towel and lay on the bed.

Sometime later I went to the bathroom and was shocked to see that her thick panties were lying in the washbasin with a huge amount of blood. I went into the bedroom to ask Nary about this but she just rolled over and I then saw that there was now a lot of blood seeping through the towel wrapped around her lower body. If I had any doubts that she had been sexually assaulted they were removed that night. While I tried totally unsuccessfully to sleep on the living room couch Nary spent the whole night sitting on the bed with the lights on and talking to some imaginary persons or God. The “conversation” was intense and continuous. At about 3 am I heard uncontrollable crying which lasted for well over an hour despite my efforts calm her down.

Neither of us had slept and when dawn broke I told Nary that she could stay in my apartment for a long as she wanted. Nevertheless, Nary insisted that she wanted to go “home”. I gave her $100 and said she could come back in the future. I had put Nari’s underwear in the washing machine and the blood had washed out – but Nary decided to throw these in the bin and left my apartment without any panties.

Contrast this with Brittany Higgins who willingly went back to Parliament House with Bruce Lehrmann, took her white dress off and put it on the floor next to a couch and lay on the couch waiting for him. For some reason Lehrmann was slow to move and by the time he got to her she was half asleep.

Nary has always refused to tell me what had happened. In contrast, Higgins happily lied and tricked her way to getting over $2m in compensation — while all the time partying in her white dress while falsely telling police it was in a bag under her bed because of its association with “rape”!

Justice Michael Lee, who justifiably did not like or trust Lehrmann, probably thinks the word “rape” applies equally to Nary and Higgins when the reality of the world suggests that they are very different things.

Lies of Mike Burgess, the Director General of ASIO

Lies of Mike Burgess, the Director General of ASIO

Mike Burgess, the Director General of ASIO, has been reported as telling the ABC Insider program that there was “far more anti-Semitism than Islamophobia in Australia” before the October 7 Hamas terrorist attacks. (“ASIO boss urges restraint in political rhetoric”, The Australian, 11 August 2024).

However, he presents no evidence for this assertion. I suspect that he has no evidence and is lying because he thinks that this view lines up with that of Prime Minister Anthony Albanese.

Or if Burgess really believes what he says, I suspect that his claim is based almost entirely on what very vocal – and PR savvy – Australian Jewish groups claim. These people appear to have much greater loyalty to Israel than Australia and are prepared to sow discord in Australia in order to advance the interests of Israel. 

Burgess also, no doubt, reads The Australian newspaper which has team of journalists and commentators who stand out for their lack of work experience in the non-English speaking part of the world and adherence to almost any American idea of being superior humans. Almost to a person they exhibit Islamophobia in the fashion of the clear views of one of Australia’s High Court Judges.

Contrary to what Burgess argues, the willingness of Australians – and the Government — to see Palestinians slaughtered en-masse by Israel suggest that Islamophobia is far greater than anti-Semitism in Australia.

I lived and worked in Russia for many years until October 2022 — that is eight months after the February invasion of Ukraine — and Burgess reminds me of the internal propaganda of Russian security agencies.

Don’t be a coward Mike! Tell us about the evidence that you have about the relative strengths of anti-Semitism and Islamophobia! 

Evan Gershkovitch and Krasikov is Bad Policy

Evan Gershkovitch and Krasikov is Bad Policy

The trading of Russian FSB assassin Vadim Krasikov for various Russian political prisoners, including US citizen Evan Gershkovitch and a number of Russian dissidents, illustrates the incompetence of US and German leaderships in foreign policy – and reflects the reason that Russia is winning the war in Ukraine!

The essence is a failure to understand that the desires of a dictator do not necessarily coincide with those of the remainder of the elite or the wider population. The return of Krasikov was an obsession of Vladimir Putin, and perhaps a few of the Russian elite, but the vast majority would not have cared. This was also the case with Putin’s obsession with Russian historical lordship of Ukrainian lands.

No long-term dictator – whether it be Mao Zedong, Adolf Hitler, Joseph Stalin, Napoleon Bonaparte, Benito Mussolini, Kemal Ataturk or even Putin – is able to totally get his own way, and all rely on some very significant agreement from others in the country’s elite. Putin was able to marshal Russian elite fears about NATO expansion and control of Crimea in support of his own obsessions because the US and its allies made it so easy to do so with their inept foreign policies that Putin could present these as a threat.

While some commentators in the West talk darkly about “appeasement”, the West should have appeased on NATO expansion and not done it, and it should have appeased on Crimea because these were issues of concern to a great many Russians beside Putin. Where it should not have appeased is on such cases as the 2006 poisoning of Alexander Litvinenko and the 2018 Skripal poisonings and the shooting down of MH17 because a much tougher reaction would have been seen as a counter to the obsession of Putin and his security agencies rather than as anti-Russian. The timid reactions of the West allowed Putin to seem to many like a super-strategist, and this increased his chances of shoehorning the elite into accepting his decision to invade Ukraine. The deal to return Krasikov to Russia will make Putin seem even greater in Russian eyes and will bolster his support.

I was living in Russia at the time of the February 2022 invasion of Ukraine and continued to do so for another eight months. I spoke to many people both in Moscow and other places. While there were some who strongly supported the invasion, the great majority were apprehensive and even afraid to use the word “war” or speak against it. But now Russian – and Putin – successes in Ukraine, the Russian economy and dealmaking are leading to a very significant change in attitudes.

The West has tried to blame Chinese support of Russia for the Russian successes, but at a time when many in the West and NATO talk of the possibility of nuclear war, it is NATO member Turkey which has become a major conduit for belated and weak sanctions and QUAD member India which has facilitated oil export revenues. And it was the tardy provision of often dated weapons that allowed Russian forces to consolidate their positions. 

Will the West learn any lessons from this in regard to China? In the end it may not matter, but the West should try to understand – and act upon – the reality that whatever obsession Xi Jinping and some others may have about Taiwan, the majority of Chinese probably do not care unless the West gives Xi Jinping the opportunity to stir up the issue by taking actions that seem more generally anti-Chinese.

Beazley, Richardson, Dibb are old men pushing sexy, ignorant group thinks.

Beazley, Richardson, Dibb are old men pushing sexy, ignorant group thinks.

On 28 May a Defending Australia Summit was held in Sydney by “The Australian Newspaper” which showcased 3 former Australian defence officials who seemed confused by their old age and indulged in ignorant and historically romantic group think.

 

Kim Beazley is a former Australian Minister of Defence and Ambassador to the US, Denis Richardson is a former head of the Department of Defence and Ambassador to the US, and Paul Dibb is a former Department of Defence official in charge of strategy.

 

All have spent nearly all their working lives in Canberra or Washington talking to people with similar ideas and sources of information. None of them have any significant economic, business or industry experience. Despite this, all extolled the virtues of building AUKUS submarines – which, magically, will now be newly designed 12000 ton behemoths compared with 7000 tons for present-day US nuclear submarines and about 3000 tones for present-day Collins class conventional subs — in the South Australia city of Adelaide.

 

It was strange that Richardson said that Australia should not buy foreign defence equipment and then try to modify the stuff to suit its own needs because of the past disasters in this area, but then enthusiastically endorsed AUKUS modified submarines saying that Australia is a “can do nation” and winning is “simply a question of will and perseverance” — as if it was a pep talk for a national football team!

 

All three agreed that Australia would need to join the US in any war with China over Taiwan. One reason seems to be that Australia needs to defend “freedom of navigation” and its international trade routes by fighting China, even though 40% of Australia’s exports go to China (12% to Japan, 7% to South Korea).

 

Another reason is that the Australia-US alliance would collapse if Australia did not join in fighting China, even though Beazley said that the US “has never been more dependent on Australia” than now.

 

It was strange that Dibb said that Japan would not join in the fight against China, and did not suggest that this would affect the US-Japan alliance .

 

Then there was the issue of skilled workers to construct the AUKUS submarines. Australian Submarine Agency director-general Jonathan Mead said his biggest concern over the AUKUS program was finding and training the people to deliver it. “Workforce has always been identified as the No. 1 issue.”

 

“The Australian” journalist Cameron Stewart – once again with no economic, business or industry experience – is an AUKUS enthusiast. The next day he wrote:

 

“South Australia’s Premier, Peter Malinauskas, has sent a timely message to both sides of politics in Canberra that the AUKUS plan to build nuclear submarines will succeed only if it is front of mind in every area of government policy. Malinauskas wants AUKUS to be a consideration in deliberations over the level of Australia’s skilled migration program. But more than that, he is urging the federal government to think bigger on AUKUS, beyond the defence portfolio, and to understand how an enterprise of this size and ambition will touch almost every major area of public policy. When we think about housing, what does it mean for AUKUS? When we think about infrastructure, what does that mean for AUKUS? When we think about education, health, or innovation policy: AUKUS has implications that reach into every portfolio.” The size and ambition of the plan to build five SSN AUKUS nuclear-powered submarines in Adelaide, and maintain three US Virginia-class submarines, is beyond anything attempted in Australia. Malinauskas warns now is not the time to cut migration levels when SA’s defence sector will need to more than double its workforce of 14,000 in defence and associated industries by the 2040s. Foreign nationals cannot work on the AUKUS project for reasons of national security, which means the submarine enterprise will recruit those extra 15,000.”

 

Given the time frames, why not just encourage Australians “to think about” having “big sex for big AUKUS” and put – a la Sparta – the children in special schools to became future AUKUS sex and construction workers?

Jewish women Yvonne Engelman and Nina Bassat are Russia-type PR pawns?

Jewish women Yvonne Engelman and Nina Bassat are Russia-type PR pawns?

President Putin banned the word “war” and insisted that Russians use the term “special military operation” to describe his February 2022 invasion of Ukraine because he wanted to manipulate the public’s thinking and divert it from reality. I lived in Russia until October 2022 – for eight months after the invasion – and can attest how manipulating speech facilitates manipulation of thinking. It works slowly and insidiously.

 

There is now widespread support for the war against Ukraine. Tatiana Stanovaya has written that “critiquing the war makes you an enemy of the state (and by extension, the public)” and liable to be branded a neo-Nazi or Fascist and be jailed.

 

Josh Frydenberg and several Australian Jewish organizations, such as the Australia/Israel and Jewish Affairs Council (AIJAC), are grossly exaggerating Australian antisemitism – which is mostly the result of events in Gaza – to divert attention from Israeli brutality. They want Australians to feel un-Australian and akin to a Hitler admirer if they focus their minds on a government in Israel – and it seems a society — that wants to purge Gaza of Palestinians.

 

Frydenberg and Co. are happy to manipulate thinking in Australia because their true loyalties are to Israel. I have written about my personal experience of this with Colin Rubenstein of the AIJAC. See:  https://www.jeffschubert.com/me-and-colin-rubenstein-an-australian-traitor/

 

Frydenberg slickly uses the PR trick of getting a couple of vulnerable people who have genuinely suffered — in this case in the Holocaust – as pawns to try to focus attention on “bad Australia” and away from Gaza.

 

Yvonne Engelman said: “My message is: get involved. Stand up and say, ‘this is wrong. We don’t want this in our country’.” Nina Bassett says: “Open your eyes and open your mind and open your heart … speak out on the right side of history”.

 

If Engelman and Bassett really and honestly think there will be a Holocaust in Australia, they would be sensible to leave!

 

Finally, Deputy Prime Minister and Defence Minister, Richard Marles, says he is “deeply uncomfortable” with the phrase “from the river to the sea” because it “is a phrase which calls for only one state” and it undermined bipartisan support for a two-state solution. Oh! So, now Australians will soon only support something other than a “two-state” solution at the risk of criminal prosecution?

 

In addition to living in Russia, I have lived and worked in China where my book on dictatorship is banned, and I would be happy to explain to Marles – if he has the guts — why he would be happy working in a dictatorship! See my book on Adolf Hitler, Mao Zedong, Josef Stalin, Benito Mussolini, Napoleon Bonaparte, and Kemal Ataturk: https://www.jeffschubert.com/

 

My other internet sites are: https://russianeconomicreform.ru/  and https://shanghai-ifc.org/

 

 Jeff Schubert

WhatsApp and Telegram:  +855 6157 6627

  

Bad News for Ukraine

Bad News for Ukraine!

Several interesting pieces of news about Russia have emerged in recent days which add to my view that Ukraine has little chance of a victory.

 

FIRSTLY, Tatiana Stanovaya, in “Russia’s Pro-Putin Elites”, Foreign Affairs, 9 May 2024 (see (https://www.foreignaffairs.com/russia/russias-pro-putin-elites ),

reports on the present elite mood in Moscow when it comes to Ukraine. I left Russia in October 2022, eight months after the invasion of Ukraine, to speak at an Indian Government seminar in New Delhi on Russia-China relations (see

https://russianeconomicreform.ru/2022/10/china-russia-in-era-of-xi-and-putin/ )

but the defiant and aggressive mood in Moscow does not surprise me.

 

Stanovaya writes: “Judging by off-the-record talks I had with contacts in Moscow, it became clear that nobody is looking for an exit strategy from the war or an opportunity to initiate dialogue with the West; nobody is concerned with persuading the West to ease sanctions; nobody is hungry for compromise with Ukraine, at least under its current leadership. There is no conjecture about what would constitute an acceptable deal to end this conflict. Instead, the Russian leadership and elites are proceeding on the basis that Russia cannot afford to lose the war, and to ensure it does not, the country must keep up the pressure on Ukraine, for no matter how long.”

 

“The exact nature of that victory remains vague in the minds of Russian elites, who instead seem to find more safety in Russia’s posture of aggression alone. The war has become a goal in and of itself, serving multiple purposes: it staves off defeat, creates new opportunities for career growth and business ventures, and boosts the economy. Critiquing the war makes you an enemy of the state (and by extension, the public) and hoping for its imminent end is too wishful; a Russian defeat, after all, could make many in the country vulnerable to being held accountable for complicity in war crimes perpetrated in Ukraine.”

 

“More than two years of war have made the Russian elites more anti-Western and anti-Ukrainian than ever, binding them to Putin as their sole assurance of survival. The anti-Western narrative is now pervasive across all segments of the elite, including the siloviki (members of the security services), technocrats within the administration, former liberals now serving Putin, and hawks. The very idea of compromise with the West is repellent to many in the elite. Putin’s re-election in March has reinforced among many the belief that change is impossible, fostering a sense of both powerlessness and dependence. In this situation, all one can do is accept reality: a Russia that is repressive, aggressive, jingoistic, and merciless. It’s not that elites trust Putin — it’s that to survive they have to reconcile themselves to the implacable, tightening grasp of the regime. Those who hoped to simply wait out this period of repression and zealotry now realize that there is no returning to the way things were. The only escape from despair and hopelessness that seems viable requires them to join the ranks of Putin’s devotees: becoming pro-war, radically anti-Western, and often gleeful about anything that hints at the crumbling of the U.S.-led international rules-based order.”

 

“The war and Putin’s escalating confrontation with the West are foreclosing the space for internal divisions and disagreements. In matters of national security and geopolitics, Putin has managed to forge an impressively homogenous political landscape where nothing can challenge the commitment to the war in Ukraine and hostility to the West. The regime has denied the dissenting segment of society—which accounts for approximately 25 percent of the population, a significant proportion, according to the surveys conducted by the Levada Center, Russia’s most reliable independent polling agency—any meaningful political infrastructure and the ability to express antiwar sentiment without risking imprisonment.”

 

“A centripetal force is bearing down on Russia, with the Kremlin exerting greater control over state and society. Both the Russian elite and the broader public desire peace, but strictly on terms favorable to Russia—ideally with the de facto capitulation of Ukraine. They want Russia at a minimum to evade suffering a strategic defeat in Ukraine, but what constitutes an acceptable victory remains a matter of debate. Even to that nebulous end, they appear ready to fight forever.”

 

“Some observers argue that Ukraine should acknowledge that it cannot retake all the territories conquered by Russia and that Kyiv should be willing to cede land to Moscow to pave the way to peace. But that may not be enough for the Kremlin and the elites that serve it. Putin’s dispute over territory is a strategy rather than a final objective; his ultimate goal is not the seizure of a few provinces but the disbanding of Ukraine as a state in its present political form.”

 

“As Russian leaders weigh which nuclear options might best deter the West from taking bolder steps in Ukraine, many within the Russian elite welcome the escalation. ‘How does Europe not understand this?’ one Moscow source in policymaking circles told me. There’s noticeable excitement among the elites and the military: the prospect of engaging NATO soldiers is far more motivating than confronting Ukrainians. For Putin, any form of intervention would be a welcome scenario.” “Many in Russia are in fact eagerly anticipating the further escalation of the conflict, confident in their country’s invincibility.”

 

“Among Russian elites, the prevailing belief is that only a military defeat or a prolonged, severe financial crisis could halt their country’s momentum. Many Russians see defeating Ukraine as a crucial step in the Kremlin’s anti-Western agenda. Forget territorial gains or even preventing NATO expansion—establishing a political regime in Ukraine that is friendly to Russia, thereby denying the West a beachhead on Ukrainian soil, would mark a significant defeat for the West.”

 

“Attempting to appease Putin is futile, and wishfully seeking for fragmentation within Russia is unlikely to be effective as long as the country remains financially robust, maintains the upper hand over Ukraine, and secures total domestic control. The authorities are rapidly becoming more hawkish, the elites are increasingly embracing Putin’s war agenda, and the broader society is unable (or indeed unwilling) to exert the kind of pressure that might push Russia in a different directions. Western leaders face the unenviable task of determining how to engage with a Russia that has grown increasingly self-confident, bold, and radical.”

 

SECONDLY, Prime Minister Mishustin has announced some new ministerial appointments. Acting Deputy PM and Minister of Industry and Trade Denis Manturov has been tapped to become First Deputy Prime Minister. “The upgraded status of the Deputy PM in charge of industry is due to the importance of ensuring technological leadership, as stated in the new May decree signed by President,” government spokesman Boris Belyakov explained. The new government will also see a new Deputy PM position created, with the official specifically tasked with the development of transport and logistics.

 

I have previously written about Russia’s new attempts at “technological leadership” under the heading “Russia’s Crazy New Religion of Economic Sovereignty”. See: https://www.etterretningen.no/2023/05/04/russias-crazy-new-religion-of-economic-sovereignty/

 

I argue that “at the present time Russian nationalism – and fears – are driving the ideas of technological and economic sovereignty. It may take a few years, but eventually the folly will become very clear.” In the short term, however, the focus on this will give some gains and provide the confidence building illusion that Russia is on the right track to greatness and “invincibility” – and so further boosting the unwillingness to compromise on Ukraine. 

 

The appointment of hard-line economist Andrey Belousov to replace Sergei Shoigu as Defence Minister fits in with this view, as the position is mainly concerned with ensuring that the military has the resources that it needs rather than with direct combat operations. An historical example may be the appointment of Albert Speer, who was Adolf Hitler’s architect, to the position of Germany’s Armaments Minister — which brought positive results for Germany.

 

Overall, I retain my view about Russia’s economic future which I wrote six months ago on https://russianeconomicreform.ru/

 

I wrote: “Since February 2022 Russia has increasingly turned inward in political, social and economic terms. At the same time, Russia’s top leaders – and some important supporters – seem to think that Russians have some unique characteristics and talents that will allow an extreme focus on self to thrive in a complex economic and technological world; and also both influence and attract others. While this may appear to be so in the short-term because of Russia’s generally successful efforts at macroeconomic control, rich natural resources, internal propaganda and implicit threats to use nuclear weapons, this thinking is delusional. The ideological corruption of the education system will reinforce the misguided notion of technological sovereignty; and social and economic life will in the medium-long term move toward stagnation. Moreover, Russia is a country with a declining population which is increasingly ignorant of the wider world, a deteriorating culture, and no solid friends. Little will change while Putin and his thinking hold sway in Russia and present an antagonistic face to the world, and most Ukraine related foreign sanctions remain in place. Russia’s economic and political future is not particularly rosy, but neither is it anything like the 1990’s because of a generally competent bureaucracy and little prospect of regional separation.”

Group Think psychology of AUKUS and Option 2

Group Think psychology of AUKUS and Option 2.

The idea that nuclear submarines can be built in Adelaide under AUKUS has the characteristics of the “group think” that led to invasion of Iraq in 2003 — and the prolonged strange debate about business taxation’s Option 2 over twenty years ago. Alexander Downer, the former Australian Foreign Minister – like me from South Australia – in an October 2023 interview with “The Australian” newspaper’s Paul Kelly described the idea of building nuclear-powered submarines in Adelaide as a “bit of a fairytale”. Downer says that “some government in the future will make the obvious decision and not go ahead with the Adelaide build”.

 

So, how and why has this aspect of AUKUS survived so long?

 

One possibility is that the upper ranks of the Australian military and defence bureaucracy are so lacking in intelligence and knowledge that they cannot see the obvious problems. South Australian Premier Peter Malinauskas has said: “The AUKUS submarines will be the most complex machines that have ever been built in human history.” Adelaide does not possess the skilled labor, industrial and technological base to build anything more than a basic diesel submarine, and its geographical location is hardly conducive to effective supply chain management of a new design. Moreover, the AUKUS submarine design exists only in digital form.

 

The most likely explanation for the survival of the idea of building nuclear submarines in Adelaide is a type of severe “group think” which I witnessed in the taxation Option 2 (also known as TVM or the Tax Value Method) debate over twenty years ago.

 

Option 2 was extensively analysed and debated by the Business Coalition of Tax Reform (BCTR) for over three years beginning in 1998 — almost exclusively because it was initially pushed by John Ralph, an ex-CEO of CRA and business luminary, based on a Commonwealth Treasury report that did not include it as the preferable way to go; it was just a theoretical second option flight of fancy!

 

Option 2 took on a life of its own because the Business Council of Australia (BCA) – which is essentially an association of CEOs from the 100 biggest Australian companies – wanted to support Ralph and wanted to take the lead in business tax reform.

 

The odd thing was that nearly all the tax accountants inside these 100 companies were opposed to Option 2 because it was not considered practical and was not in use in any other significant country. But these tax accountants did not wish to publicly criticize something that their bosses supposedly supported – at least according the ambitious professional bureaucrats managing the BCA — and so basically adopted a stance of “more research is needed”.

 

When combined with the lack of knowledge of taxation amongst other business groups which were members of the BCTR, this led to a sort of passive group think.

 

The BCTR had a membership of about 40 business associations — such as Canberra based ACCI, the National Farmers Federation, and the Sydney based AI Group and many smaller ones – but the BCA convened and chaired the initial meetings. This gave it a sort of first mover advantage. While a series of “independent” businessmen were eventually appointed chairman of the BCTR meetings, they were ex-CEO members of the BCA.

 

One of chairmen them was particularly aggressive, and when a PwC tax expert raised some issue with Option 2 he was accused of “trying to divide business”. The PwC guy never again spoke at a meeting.

 

In about a dozen full-day meetings that I attended over a three-year period less than 10 of business associations actually put forward an opinion. The rest just sat there saying nothing — meeting after meeting! It was a very passive form of group think. The BCA was left to draft a series of press releases over a three-year period that promoted Option 2 — until in mid-2002 when even its proponents eventually conceded it was unworkable!

 

A similar thing seems to have happened with AUKUS. Someone who wished to see closer defence cooperation between Australia and the US had a moment of inspiration about building nuclear submarines in Adelaide. The idea appealed to prime minister Scott Morrison, a former marketing executive with no industrial or large project experience or knowledge. A high profile announcement gave first mover advantage to AUKUS in a PR sense. Because all other attempts by Australia to procure submarines had been botched, many people seem to have basically thrown up their hands, sighed, and where possible fall into line so that some of the billions of dollars would flow to them.

 

Oh! I forgot to mention that one of the reasons the Option 2 debate lasted so long was the consulting dollars, travel and feelings of importance that flowed to various individuals and groups as long as Option 2 needed “more research” and more meetings.

 

While there are people still saying that nuclear submarines will be built in Adelaide, none of these people are disinterested industrial experts. Indeed, just like the tax experts who opposed Option 2, there seems to be a fear of speaking out — and just like the PwC guy, someone will say you are “trying to divide freedom loving countries” if you question AUKUS.

 

Rex Patrick, a former South Australian Senator and submarine crewman, has written that “senior military officers, who were no doubt great war fighters in their junior years but with little project management experience, have been making high-risk purchase recommendations to Cabinet ministers with zero project management experience”. From the navy’s perspective, “the public is better served if debates about defence are devoid of any contributions from people who know about the subject”.

 

Patrick description of the AUKUS leadership team could, with a few title changes, have equally been used to describe the sort of people pushing Option 2: “The AUKUS leadership team is filled with seasoned military officers, public servants and academics – but little actual shipyard experience. Sure, they’re capable people, but they’re not a hardened project dream team. For many of them the project is a stepping stone to another more senior role.”

 

Just as the BCA got on the front foot and was able to guide and manipulate the Option 2 narrative for three years, the AUKUS debate is now supposedly about technological cooperation in a Pillar 2. As for nuclear submarines in Adelaide, now the so-called Pillar 1 of AUKUS, a form of passive groups think now predominates.

 

 

Putin says he follows Israeli Gaza example

Putin says he follows Israeli Gaza example in Ukraine

Vladimir Putin has in the past justified brutal Russian military actions – such as in Ukraine and Syria — by saying they are the same as the Israeli actions we now see in Gaza.

 

Putin has said that “attempts to spare terrorists under the pretext of protecting civilians are unacceptable”.

 

At a meeting of the Valdai Discussion Club in Russia on 27 October 2016, Putin was asked about Russia’s fight against terrorists, particularly Islamic State of Iraq and the Levant (ISIS) and the destruction of much of the city of Aleppo. Putin’s earlier actions again Grozny in Chechnya were also on people’s minds.

 

Putin said: “We keep hearing Aleppo, Aleppo, Aleppo. But what is the issue here? Do we leave the terrorists in place, or do we squeeze them out? Look at Israel’s example. Israel never steps back but fights to the end.”

 

I lived in Russia until October 2022 – that is, ten months after the Russian invasion of Ukraine in February and I spoke to many people in both Moscow and Irkutsk (near Lake Baikal in Siberia) about it.

 

Like me, some people were horrified. But there was also a surprising number of well-educated and well-travelled people who strongly supported the so-called “special military operation” in Ukraine. One reason was because around 10,000 people had been killed in the eastern Ukraine provinces of Donbas and Luhansk near the Russian border as the central government in Kiev tried to asset its authority over Russian speaking separatists.

 

In the view of many people in Russia, the Russian speakers in these provinces were being terrorized in much the same way as Hamas has terrorized Israel.

 

Some days before I wrote this article, I put a version of the above information on LinkedIn. One contact on that site is a quite well-known self-described “public intellectual” who often has opinion pieces published in “The Australian” newspaper. He sent me this:

 

“The deaths in the Donbas occurred because Kremlin-inspired and armed thugs attacked the legitimate Ukrainian authorities and sought to establish independent fiefdoms.”

 

But the story is not as simple as that. Analyst Anna Aruntunyan, who is no fan of Putin, wrote that “according to a poll conducted in April 2014 by the Kiev International Institute of Sociology, over 70% of respondents in the Donetsk and Luhansk oblasts of Ukraine – where support for Russia was far less consolidated than it was in Crimea – considered the government in Kiev illegitimate.”

 

The views of the “public intellectual” had an element of simplified truth as there were some such “thugs”, but they would have got nowhere without much public support.

 

Of course, Russia is not innocent now and its past actions mean many of its neighbours fear it. Its present government is also ruthless in supressing internal dissent and its soldiers are indeed often very ruthless.

 

It is not surprising that this provides a background for viewing Russian actions in Ukraine in the worst possible light. What is surprising is that when Israel tries to destroy Gaza using many tactics similar to Russia, it is seen as morally just and every death – even of aid workers killed by the Israeli military – is the fault of Hamas.

 

Should we say that every death in Ukraine is the fault of NATO? Of course not, Putin made the decision to invade Ukraine. NATO expansion was one of the reasons that he did it, but he could have decided otherwise. Similarly, Israel did not need to take such cowardly action in Gaza after the 7 October Hamas terrorist attacks.

 

It is hard to pin down the exact reasons that Israel is given such a free pass – and even encouraged by some – when it acts in the same way as Russia.

 

But “The Australian” newspaper is also interesting here. Many of its journalists and contributors like to write about “values” and “morality” – particularly, the likes of Paul Kelly and Greg Sheridan. They point to the supposed superiority of Judeo-Christian values and morality; and because such people see Israel as one half of this – almost one half of themselves — then Israel must have entirely positive values because such people can only see themselves in a very positive light.

 

Then, of course, there is the issue of the “guilt” for the holocaust which many Jews milk to the extreme for sympathy. It is as though if you are critical of Israeli actions in Gaza, then you are antisemitic; and if you are antisemitic, then you think nothing wrong with innocent women and children lined up to enter a gas chamber!

 

When Putin compared Russian actions in Aleppo with Israeli actions, he was in his typically blunt way inviting Russia critics to look honestly in the mirror. Supporters of Israeli actions in Gaza should do the same.

 

 

Henry Ergas praises Nazi “Will”

Henry Ergas praises Nazi “Will”

Henry Ergas, “What has happened to the West’s will to win?” (The Australian, 16 February 2024)  criticized lack of US “will” for “victory” in Gaza and Afghanistan under presidents Biden and Obama, while praising Franklin Delano Roosevelt for saying that the World War II task of the US Army was  “breaking the enemy’s will and forcing him to sue for peace”.

Ergas then enthusiastically praised the “Allies” which “ruthlessly crushed the Axis powers, reducing their cities to rubble, forcing their population into homelessness and starvation, and then building, on totalitarianism’s ashes, a shared future of freedom”.

Ergas does not seem to know that the WWII “allies” included the Soviet Union which continued to build one totalitarian system on the ashes of another!

Ergas then paraphrases Carl von Clausewitz about a need for a “second act” after first winning battle. This is the need to ensure that “victory should really be complete” by “shattering the enemy’s self-confidence and shocking the whole nervous system” of its fighting force.

 Ergas writes: “Those are the reasons for pursuing Hamas wherever it hides, including into Rafah. Inevitably, that pursuit entails civilian casualties: that is the tragedy of war.”

Ergas criticizes Biden for beginning to “distance itself from Israel” action in Gaza, which he says is “because the West has lost the will to win”.

But, what do we know about “will” and war apart from Ergas tells us?

Adolf Hitler’s lieutenants, such as Joachim Ribbentrop and Albert Speer, wrote much about his “will”. Indeed, in 1923 Hitler said: “The man who is born to be a dictator is not compelled; he wills it.” The film of the 1934 Nuremberg Nazi Party Rally was entitled, at Hitler’s suggestion, “Triumph of Will”. In late 1942 Hitler ordered Field-Marshall Rommel to hold the line in North Africa, telling him that “it would not be the first time in history that the stronger will prevailed over numerically stronger enemy battalions”.

Josef Stalin told an American journalist that he believed “in one thing only, the power of human will’. Nikita Khrushchev defended himself and others from criticism by saying: “We were all victims of Stalin’s will.”

Mao Zedong’s doctor, Li Zhisui, later wrote that “Mao was the centre around which everyone else revolved. His will reigned supreme.” Mao himself wrote: “Weapons are an important factor in war, but not the decisive factor; it is people, not things that are decisive. The contest of strength is not only a contest of military and economic power, but a contest of human will.”

Ergas concludes his article by suggesting that this lack of Western – particularly American — “will” is being noticed by “Russia, Iran and China” and that there will be severe physical consequences.

In Gaza, Israel is exerting its extreme and cowardly “will” over mainly women and children. Does Ergas suggest that the US and the remainder of the West take a similar approach to Russia and China? They might be surprised to discover that there are also notions of “will” in these countries – and that it is not only amongst their dictators – and that an Israeli-type approach will be met with a “will” to use nuclear weapons rather than the cries of children.