Posted By David J. Rothkopf

One cannot help but be moved by the on-going example of the Japanese as they struggle to rebuild. It is not just the country's dignity or industry. It is something deeper. It is their sense of community.

Recently, polls from leading Japanese newspapers have all confirmed that between 60 and 70 percent of Japanese citizens would welcome paying higher taxes to help recover from the quake and the tsunami. Across the country, reports abound of citizens embracing austerity -- from the disciplined limitation of their use of power to forswearing the purchase of high-end consumer items for which the Japanese have historically had a highly developed appetite. Japanese political leaders, though still struggling to come together as effectively as the population at large, even make public displays of commitment that are striking (to the degree to which it is hard to imagine American politicians doing the same) such as publicly digging in to meals prepared with produce from the Fukushima region to promote agricultural interests there despite the lingering after-effects of the radiation leaks.

Secretary Clinton's visit to Japan during which she met with the emperor and his wife, the prime minister and the foreign minister, was a welcome further sign of the active support the Obama Administration has given to Japan in the wake of the crisis. But perhaps the secretary of state missed a chance to broker a deal while she was there. We would offer continued aid in exchange for lessons from the Japanese in public-spiritedness.

Don't get me wrong. I recognize the Japanese have been even more profligate than the United States in terms of their national government spending. But not only has their debt grown during a period of an extraordinary protracted national slow down, but given our circumstances we would do well to find inspiration wherever we can and thus there is nothing wrong with finding it in the post-disaster nobility and sacrifice of the Japanese people.

Here at home, we have, for example, a debt disaster that none other than the Chairman of the Joint Chiefs of Staff, Admiral Mike Mullen, has characterized as the greatest national security threat the United States faces. Members of Congress scramble to attack one another for their fiscal recklessness. Each political party reveals their true colors by courageously calling for cuts that would most heavily impact their opponent's political bases. ("We must all sacrifice. And by 'we', I mean 'you.'")

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Posted By David Rothkopf

While it is too early to assess the long-term outcomes of the uprising in Egypt, there are nonetheless a number of important conclusions to which we can reasonably come.

First, something profound has changed. It did not change because of the uprising in Tahrir Square. It changed and the uprising was the result; the power has shifted in the region. We have passed a generational and technological tipping point. While the dinosaurs cling to the levers of power in virtually every country in the greater Middle East, the under 30 majority is now the great force to be reckoned with. While the establishment has done almost everything conceivable to keep them down from denying them education to curtailing the spread of information technologies to gutting the economies, nonetheless, new information sources and technologies and ways of connecting and collaborating seeped in to these societies through every one of the cracks spreading across the Ozymandian edifices of the elite.

These changes are irreversible. They are seen in the cell phones that even the poorest carry with them, in the broadcasts of Al Jazeera, in the burgeoning Twitter feeds, the apps young Arabs create to provide work-arounds every time a government tries to curtail Internet access, and even in the technological use of some of the region's worst players.

These changes have remade the social and political fabric of the region. What they have yet to do is what they have done everywhere else in the world and that is to fuel economic change.

That is the second inescapable conclusion we need to consider. The great challenges before this under-30 majority are economic, they are about opportunity. They are not about Israel or battles between Shiites and Sunnis or tribal divisions. Those problems still fester, but the unifying challenge for this generation is even more basic: They need jobs. They crave opportunity. And the failure of their leaders to provide them with these basic sources of sustenance and dignity is what has fueled the revolutions of 2011.

A corollary to this conclusion is that we in the United States have been sending the wrong people with the wrong approaches to solve the wrong problems in this region for decades. The problems of this region will not be solved by negotiators or generals. They require investors and entrepreneurs and educators. To the extent that we can contribute, we must do so by supporting the creation of economic opportunity. It is a massive undertaking but it is the only true peacemaker.

A third conclusion is related to the second, however. The role for the U.S. government in all this is very, very limited. We would do well to redirect what aid we provide to address this core challenge of creating jobs for the under-30s. We would do well to put our best economic minds in charge, perhaps even appointing a special economic envoy of real stature. But the only people who can ultimately solve this problem are in the Middle East. In fact, in the hierarchy of those who can help, if the people of the Middle East are first and by far foremost, it is the people of Europe, not the United States who must be second. They are the natural economic neighbors of the region and they must answer the question whether they want those under-30s employed in the Middle East or seeking employment in Europe. After the Europeans, it may even be the Chinese or Indians and others dependent on oil in the region and closer to its problems who should take more prominent roles in helping to solve the problem than the United States, which is a lightening rod and has problems of our own at home.

A fourth conclusion is that the hardest part is clearly still ahead of us. Egypt must make the transition to democracy and that means the military must really step aside after six months. Friends of mine who have met with them believe they understand the implications of the political earthquake that has taken place during the past month and that they will do so. But there are dinosaurs among their leaders so it is by no means a sure thing. Even beyond establishing a democracy is actually keeping one, and beyond that is addressing successfully the economic challenges alluded to above. Further, there are the problems of all the other countries of the region. They will be difficult to handle but we in the United States need to be confident enough in our core beliefs to let them work them out among themselves. There will be fights and setbacks and people we don't like will periodically gain the upper hand. But give me a duel between two guys armed with the Internet, Facebook, and Twitter feeds and let one offer the people the 11th Century and another offer the 21th and I know who I will bet on.

Finally, my fifth conclusion is that of all the big challenges ahead for U.S. foreign policy associated with this period of upheaval, the greatest by far lies with Israel and the Palestinians. Personally, I am not sure why the Palestinians have not yet unilaterally declared independence. The world would surely support them. But imagine what would happen if, perhaps on the road to such a declaration perhaps following it, a hundred thousand Palestinians took to the streets peacefully demanding real self-determination. With memories of Tahrir Square fresh in the minds of the world, how could the Israelis respond as they might have in the past? On what side of history would they appear to be as President Obama might put it? And in that vein, on what side of that history would President Obama and the United States want to be?

Until now, the fact that Israel was the region's only democracy was its "get out of jail free" card. It was used to excuse ... or attempt to excuse ... a multitude of sins. For this reason, no Arab military offensive could be as effective in undermining Israel's strategic advantages as real democracy taking root elsewhere in the region. The Netanyahu administration would be flummoxed if people power came to the West Bank and Gaza. They would be cast involuntarily with the dinosaurs. They would have no pages in their playbook indicating how to handle this. They would have very few good choices.

Actually, they would have only one. They would have to get out of the way. They would have to do what Mubarak did. They would have to step within the 1967 borders and let the Palestinians begin the job of building Palestine. And they would have to hope that the United States, Europe, and the rest of the world helped the Palestinians do it because once that happens, it will be of the utmost importance for Israel that its new neighbor produce real opportunity for its people ... because we have seen the alternative and it, for this generation who have both nothing and nothing to lose will not be contained by the tactics or the rhetoric of the past.

Chris Hondros/Getty Images

Posted By David Rothkopf

While the attention of the media is largely devoted to looming storm clouds over the Middle East, it may well be that the next tempest to shake the world may in fact be expected in your teapot. Not to mention your shopping cart. And your gas tank.

In fact, while the uprisings in the Middle East may well be harbingers of historic change in the region, they are also a direct result of another set of factors that could conceivable eclipse them as the big story of the year for 2011: rising global commodity prices. In Tunisia, Egypt, Yemen, and Jordan among the most notable complaints of protestors has been the skyrocketing food prices.

As noted here, that fact is part of a vicious circle that is worrying markets. Bad global grain crops last year produce unrest in the Middle East this year. That in turn pushes up energy prices due to concerns about disruptions in energy flows. That in turn pushes up food prices further as something like 30 or 40 percent of the cost of most food products is related to energy costs associated with processing, packaging, and transportation.

But that's not the whole story. Look at the headlines coming out of China this week about a spreading and significant drought that is likely to further negatively impact food supplies and push up prices. Look at the other headlines about Chinese and Brazilian concerns about inflation. Or the headlines from today (and many recent days) about how inflation worries are depressing stock prices.

In fact, among the very few people who are not that worried about inflation is U.S. Fed Chairman Ben Bernanke who, testified Wednesday, said that while it may be a problem for the emerging world, "inflation is expected to persist (in the United States) below the level Federal Reserve policymakers" feel they have to worry about it. Of course, just because he doesn't worry about inflation here in the United States, doesn't mean Americans aren't going to feel the pinch if food and fuel prices go up. In a rough economic environment like this one for many Americans that squeeze will be particularly acute ... and included in that group are the politicians who will hear the howls of their constituents if prices get above the level average people feel is fair to them. Furthermore, if inflation in places like China, Brazil, or elsewhere in the emerging world causes them to tighten their monetary policies or it negatively impacts  real growth, there could be meaningful negative knock-on consequences for the United States.

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Although it's hard to believe, there have actually been developments this week that were more difficult to understand than the finale of Lost -- which is saying something since the show was roughly as incomprehensible as a boozy 3 a.m. chat with Lindsay Lohan.

We've had:

  • People actually listening to the rantings of James Carville, a man who has turned Tourette's Syndrome into a form of political analysis. This week it was about how the government should take over shutting down the Gulf oil spill despite the fact that literally no one in the government has the expertise to do so.
  • The U.S. still trying to undercut the benighted, ill-conceived and virtually certain not to work Brazilian-Turkish initiative with Iran in order to advance our own benighted, ill-conceived and virtually certain not to work sanctions program there.
  • The release of a national security strategy that could have easily saved much paper by simply using a photo of George W. Bush with a big red circle around it and a line through his face. What made the strategy -- which was an almost perfect snapshot of mainstream foreign policy conventional wisdom -- incomprehensible was not its content so much as it was the clear disconnect between that content and what the administration was actually going to be capable of or inclined to do.
  • The presentation of Exhibit A with respect to the aforementioned disconnect -- which was when Loveable Old Uncle Joe Biden then said we were on schedule to leave Iraq despite the fact that as the Post subhead put it: "U.S. expects to leave despite violence and political disarray." We seemed to have gone from the absurdity of "Mission Accomplished" to the pathos of "Mission Abandoned."
  • Bland Lee Dewyze beating gifted Crystal Bowersox on American Idol. Even more baffling: that the show will still be the most viewed television program in America this week despite the fact that it contains less healthy nutritional content than one of KFC's Double Down sandwiches. (That's the one that uses two pieces of fried chicken instead of bread ... and come to think of it, the fact that America eats crap like that sandwich and watches crap like "American Idol" actually not only makes perfect sense...it explains why we ended up with Bush as president and why, maybe, Obama's national security strategy was even necessary. Not much there but at least it is a kind of policy detox. Better for our blood pressure, fewer toxic additives, and a recognition that for a while we're going to have to be on a fat free diet if we want to regain our strength.)

If all that's confusing to you, brace yourself -- the summer ahead may prove to be a real head spinner. And more on that note in tomorrow's offering. Stay tuned... 

Chip Somodevilla/Getty Images

Posted By David Rothkopf

Word came through late yesterday that as anticipated here the White House caved to Senator Grassley, providing assurances America would not be lifting its tariff on Brazilian ethanol anytime soon.

As interesting to me was that the Renewable Fuels Association, which is not like many things in Washington what its name suggests and does not support all renewable fuels just those produced by its members, saw fit to issue a press release going after me and Andrew Sullivan who graciously picked up some of what I had written on our corndog friends. They accused me of being an international consultant (true) who has worked closely with Brazil (also true). It helps to work with different parts of the world to actually know what's going on in them. In fact they characterized me as a Brazil nut. This hurt. Because I actually am not a big fan of Brazil nuts. They then went on to say that there are, despite my assertion to the contrary, credible experts who think corn makes a shred of sense. They listed a number of reasons why corn would make sense -- if you were just interested in using a feedstock that is already being produced for which we already have fancy subsidy programs that comes from states with a lot of political clout, for example. They also erroneously suggest that Sullivan and I implied (which we did not) that corn only comes from Iowa. In fact, I for one, know corn comes from lots of other places including Hollywood and Washington flackeries. But perhaps my language was not precise enough. 

So let's toss the ball right back at them. Please find a credible expert who believes that corn is the best possible feedstock from which to make ethanol or that corn is actually a more efficient source of energy than other feedstocks like sugarcane or likely next generation feedstocks. Once you've done that we can move on to the idea that subsidizing an industry with an unsustainable model is in the U.S. national interest or that having U.S. consumer pay more for fuel in the current economic environment is a good idea or that protectionism is really the answer. Or better yet, perhaps we can move the discussion on to why the U.S. continues to lavish subsidies on the ag business that distort world trade and, very often, primarily offer a payday to corporate farms and well-to-do larger farmers. 

Senator Charles Grassley, one of the six power brokers featured in the New York Times story today on the inner circle of senators who are shaping health care legislation, may not be one of the three Blue Dog Democrats on the group, but that doesn't stop the Iowa Republican from being pretty dogged when it comes to his own pet issues.

According to today's Congress Daily, the Finance Committee's ranking member has slammed the brakes on the confirmation of Thomas Shannon to be ambassador to Brazil. His reason? He seeks what is euphemistically called a "clarification" of Shannon's confirmation hearing statement that eliminating the tariff on ethanol imports would be "beneficial." Of course, by "clarification" the Senator means a complete reversal slammed down Shannon's gullet by administration higher ups.

In letters to Secretary Clinton and USTR Kirk Grassley wrote:

A clear signal of the President's stance on this issue would decrease the possibility of confusion in America's heartland and in Brazil regarding the ethanol tariff if Mr. Shannon were confirmed as Ambassador to that country."

Since Shannon, most recently U.S. assistant secretary of state for Western Hemisphere Affairs and by consensus the most talented and successful individual to hold that office in at least two decades, is one of America's very best diplomats he will of course, be far too circumspect to offer Grassley the "clarification" he deserves.

Let me try however. U.S. ethanol tariffs are indefensible on any level, yet another example of the system of agricultural welfare that has burgeoned in the United States thanks to that good old fashioned combination of backroom and checkbook politics that make America great. There is not a single credible analyst of biofuels (which is to say one that is not paid for by or affiliated with American agriculture) who thinks that corn ethanol makes a hint of sense. It is hopelessly inefficient and with every new development regarding next generation biofuels only grows more so. Brazilian sugar cane ethanol, the main target of the tariffs, is produced as much as eight times more efficiently. As such, it offers a cheaper, more abundant, more environmentally friendly alternative to American consumers at a time when one would have thought that concerns about reducing dependence on foreign oil and combating climate change would be at the forefront of our concerns.

But once again, America's electoral system rears its ugly head. So long as presidential campaigns begin in Iowa, Iowans like Grassley will use the system to put the interest of their state's three million citizens and the most vocal special interests within their midst like the corn lobby, ahead of the three hundred million or so of the rest of us. Further, in so doing, Grassley seeks to preserve yet another dimension of America's system of farm protection and subsidies that costs tax payers tens of billions each year, forces food prices higher (according to the likes of Nobel Prize winner Joe Stiglitz) and is the single biggest distortionary factor in the world trading system. I understand why he is doing it. It's just a shame he can. The system allowing individual senators to hold up presidential nominations is regularly abused and needs to be reconsidered.

It is now July and the Obama administration does not have its own ambassador in Brasilia, capital of one the rising powers that is most important to us in the world. The guy who is there now, Bush's appointee Cliff Sobel, is widely regarded by Brazilians (and anyone else who is paying attention) as a joke whereas Shannon is seen as the crème de la crème of the U.S. diplomatic service and is a nominee viewed with great enthusiasm by the Lula administration. The Shannon pick said "Brazil is important."  Grassley's move says "all politics is local." 

It will be interesting to see how this plays out given that Grassley is so important to the prospects for health care reform. Grassley, who is as canny as they come in the Senate, knows the hand he holds and is betting he can get the Obama team to commit to keeping the tariffs as part of the wheeling and dealing associated with health care. I wouldn't bet against him.

As they say around state fair time in Des Moines, "ain't nothing like a corn dog."

Chip Somodevilla/Getty Images

During the first part of their meetings, it looked like G8 leaders gathering in Italy had taken a page out of the books of small children everywhere, elevating the wish list to new diplomatic prominence. 

Unable to fulfill the hopes of their constituents to actually do anything meaningful about the global economy, nuclear proliferation or the rapid onset of climate change, the officials meeting in L'Aquila instead produced a barrage of strongly worded aspirations. To whom they, the most powerful men and women in the world, were appealing is open to speculation although there were rumors of naked dancing in the moonlight and animal sacrifices. (Italian insiders however, urged that not too much be read into these rumors as they typically accompany any party thrown by Italian Prime Minister Silvio Berlusconi...a man who combines the best of many of his famous countrymen, the low-key restraint of Roberto Benigni, the touching spirituality of Pope Alexander VI, and the values of the Roman Emperor Caligula -- as portrayed by Malcolm McDowell in the Bob Guccione classic of the same name.)

Among the wishes expressed by G8 leaders for us during the first day or two of the meetings were: a more peaceful, prosperous, temperate planet (also rainbows, unicorns, and butterflies). And yet no specifics as to how to achieve these goals were agreed upon. However, in lieu of the next summit, there is talk of simply buying the world a Hallmark card instead.

Given the likely future for the G8, however, as it has been unable to cast aside certain members who make it look hopelessly outdated (that would be you, Italy) and replace them with other, actually important countries, some critics suggest that in lieu of a wish list what the G8 might be better focusing on is a bucket list -- a list of things the G8 should do before it dies. Paradoxically, of course, the apparent agreement among the members of the G8 that something new and more representative of the way the planet works is in fact one of the two signs of real progress that the meeting produced.

It was confirmed by President Obama who, during his almost 40 minute post-G8 press conference, signaled that he has learned important lessons from his early summit experiences. As quoted by Agence France Presse, he said:

I think we're in a transition period. We're trying to find the right shape that combines the efficiency and capacity for action with inclusiveness.

"And my expectation is that over the next several years you'll see an evolution and we'll be able to find the right combination. The one thing I will be looking forward to is fewer summit meetings."

For those of us who have been calling for a new more inclusive "steering committee" for the community of nations, the search for a better country mix is good news. For those of us who like to see the President of the United States making better use of his time, the hope for fewer summits also is. (And despite the almost reflexive impulse some have to withhold credit from the prior administration...which seems churlish given how little credit they actually have any reasonable claim on...it is worth noting that Obama's focus on finding a successor to the G8 carries forward a process that really began in earnest when, last November, President Bush's team sought a G20 meeting to deal with the global financial crisis rather than a G8 meeting.)

In addition to this progress on an important point of process, the G8 leaders did make a hard commitment of $20 billion in farm and food aid for the world's poorest nations, another real accomplishment. We can always do more in this area...and should...I still feel that it is within the power of the leading nations to focus on and eliminate the daily deaths of 40,000 or so children from preventable causes like lack of access to clean water, adequate food, or medicine. It almost certainly would cost less than the stimulus money that will end up being wasted worldwide (which is not to say that all stimulus money is wasted...quite the contrary...rather it is to say we could make a big dent in the problem with just the spillage.)

So after a G8 meeting that gets a mixed grade and a semi-eulogy, Obama is off to Ghana...an excellent choice for his first visit to Africa as president. This will undoubtedly be a highlight of his trip and is certainly one place where who he is and how he is different from his predecessors will not only play well but will meaningfully advance the interests of the United States in the region.

VINCENZO PINTO/AFP/Getty Images

Posted By David Rothkopf

If you believe the American press, this is going to be the best week of Barack Obama's life. Not because his G20 and NATO meetings are predicted to be easy but because he is going to be in the land of his intellectual and spiritual roots, Europe. Here, among like-minded brie-loving, chardonnay-sipping, socialist fellow-travelers, he will be able to laugh at American gun-owners and Glenn Beck watchers with impunity. Perhaps, if the worst stories are to be believed, he will secretly fall into French during conversations, showing other leaders how he is more like them than he is like Sarah Palin by sharing a Gitane out in the alley behind his hotel (so Michelle doesn't see) or by giving them a glimpse of his non-U.S. birth certificate or reminding the Brits that his father and other ancestors were born (and beaten) in the Commonwealth.

Of course, not only is all this the province of snarky rumors being produced in the basement of the summer house Roger Ailes shares with his long-time secret lover Karl Rove, but also virtually all of it is untrue.  (I can't speak to what types of cheese the President likes or whether he, in a tip of the hat to European depravity, prefers his cheeses warm and crawling with bacteria.) But, there are plenty of ways the Europeans will be able to tell Barack Obama is not one of them. 

Here are 10:

  1. Americans don't let their car companies go belly up. Instead, they commit the U.S. government to switch their full faith and credit guarantees away from something that is now dubious, like U.S. Treasuries, to something that needs to be rock solid, like warranties on Chevy Suburbans.
  1. Americans stimulate. Europeans simulate. I speak of responses to the economic crisis, of course.
  1. Americans may create enormous global problems, but then we actually feel some obligation to try to help solve them. Whereas Europeans, who used to create most of the world's problems, don't even do that anymore...and when it comes to solving problems, c'est pour les Americains, non?
  1. Americans actually have a foreign policy.
  1. Americans rock. Europeans technopop. We produce the music of this era, the continent of Mozart produces the elevator music of this era. (Johnny Depp's love of Vanessa Paradis notwithstanding.) Check out the playlist on Air Force One if you don't believe me.
  1. Americans don't actually eat snails and rabbits and Swiss chard. Which is why Obama has brought his own chef and his own supply of organic arugula and free-range tofu. We also don't drive small cars or tolerate being condescended to by Euro waiters. Which is why the President is bringing his own car and his own waiters. (This is how every American would travel if they could.)
  1. Americans don't let friends' banks go belly up. That's why the Treasury funneled so much money to European banks through AIG. You don't see European governments rushing to bailout Citigroup do you?
  1. Americans love immigrants (see how we are even open to changing our minds about those whose asylum claims we once rejected...like Obama's Kenyan aunt, currently residing in public housing in Boston). Well, okay, we used to love immigrants (see all those stories about sending troops to the Mexican border). About the only thing the Europeans can agree on anymore is their long-standing hatred of immigrants. Oh and their hatred of carbon. But we hate carbon too, now. Which is a good thing. Although it does raise the whole specter of the self-hating carbon life form thing.
  1. Americans don't actually speak other languages. We only speak American languages like English and Spanish.
  1. Americans don't threaten to walk out of summit meetings before they have even begun...Mr. Sarkozy. But then, we wouldn't have left Carla home alone either. How do we avoid such walkouts? Well, generally, at meetings we just don't pay that much attention to what others are saying. It helps us stay "on message" as they say here in Washington.

Oh yes, and also, as we have mentioned before, he is a member of a racial minority group who has actually had the opportunity to reach the top in our society. Which would never ever happen in Europe.

Mark Wilson/Getty Images

David Rothkopf is the CEO and Editor-at-Large of Foreign Policy. His new book, "Power, Inc.: The Epic Rivalry Between Big Business and Government and the Reckoning that Lies Ahead" is due out from Farrar, Straus & Giroux on March 1.

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