The future of war

New technology is transforming the way wars are fought, and not just in Ukraine. 

As tension increases between China and America over Taiwan, what does the future of war look like?

Where is Russian President Vladimir Putin? – BBC News

Russian President Vladimir Putin’s whereabouts remain unknown following the short-lived rebellion from the Wagner mercenary group. 

There has been speculation that the Russian leader fled Moscow during the crisis after his presidential jets were tracked leaving the city. 

The US Secretary of State Antony Blinken said the events show the cracks in Mr Putin's authority. 

Yevgeny Prigozhin, the head of the Wagner mercenary group, has left Russia for Belarus after abandoning his advance on Moscow.

War in Ukraine: Tracking the fighting with satellites

With Ukraine’s counter-offensive shrouded in secrecy and Russian-controlled territory impenetrable, can satellite data help you see into a war zone? The Economist’s Senior data journalist, Sondre Ulvund Solstad, breaks down how he uses fires to track the fighting.

Himars in Ukraine: A Rare Look at Their Use on the Front Lines

U.S.-supplied Himars have played a key role in Ukraine's counteroffensive against Russia. WSJ’s Stephen Kalin gained rare access to the mobile rocket launchers on Ukraine's southern front, where soldiers are targeting Russian equipment and troops.

The Ukraine War’s Impact on Its Tech Sector

Ukraine’s tech sector was growing rapidly before Russia invaded earlier this year. How has Russia’s invasion changed the outlook? Two tech CEOs with Ukrainian workforces join host Zoe Thomas to discuss how they are coping and what they think the future of the sector could be after the fighting ends.

Returning to Kyiv: The Challenges Ukrainians Face Going Back Home

Despite fuel shortages, damaged roads and the risk of Russian attacks, many displaced Ukrainians are driving back home after fleeing at the start of Russia’s invasion. Here’s what one journey to Kyiv looks like.

How London became the dirty money capital of the world

Russian oligarchs and companies have been investing in London for two decades, encouraged by British politicians of all stripes, but critics say the 'London laundromat' cleans dirty money from Russia and across the globe. 

The FT examines why it took Russia's invasion of Ukraine to put the issue in the spotlight and whether new sanctions and measures to tackle the problem go far enough.

Former NSA Director on cybersecurity risks from Russia

Former head of NSA and U.S. Cyber Command Admiral Michael Rogers weighs in the risk of a Russian cyber-attack.

Ukraine's battle of the airwaves

A look at three aspects of wartime radio in Ukraine; the interception of communications between Russian soldiers; how broadcasters are using radio to combat censorship online; and the mysterious silence of a radio transmitter known as 'The Russian Lady'.

More than 600 Brands have withdrawn from Russia. How are Russians coping?

Hundreds of foreign companies from Pepsi to Apple to IKEA have pulled back operations in Russia as the West has hit the country with sweeping sanctions. Here’s how Russians are living with the economic fallout from Moscow’s decision to invade Ukraine.

Will the dominance of the dollar give way to a multipolar system of currencies?

In the wake of an invasion that drew international condemnation, Russian officials panicked that their dollar-denominated assets within America’s reach were at risk of abrupt confiscation, sending them scrambling for alternatives. The invasion in question did not take place in 2022, or even 2014, but in 1956, when Soviet tanks rolled into Hungary. 

This event is often regarded as one of the factors that helped kick-start the eurodollar market—a network of dollar-denominated deposits held outside America and usually beyond the direct reach of its banking regulators.

The irony is that the desire to keep dollars outside America only reinforced the greenback’s muscle.

In the wake of the Russian invasion of the Ukraine the new outbreak of financial conflict through sanctions has raised the question of whether the dollar’s dominance has been tarnished, and whether a multipolar currency system will rise instead, with the Chinese yuan playing a bigger role.

Read the full article on The Economist HERE. 

Why Global Supply Chains May Never Be the Same

Every day, millions of sailors, truck drivers, longshoremen, warehouse workers and delivery drivers keep mountains of goods moving into stores and homes to meet consumers’ increasing expectations of convenience. But this complex movement of goods underpinning the global economy is far more vulnerable than many imagined.

Watch this WSJ Documentary.

War in Ukraine: how far will Putin go?

Vladimir Putin’s war against Ukraine is devastating the country and its people. How far will he go? The Economist's experts discuss the threat of escalation, from the use of nuclear weapons to attacks beyond Ukraine.

War in Ukraine: are sanctions working?

Putin’s invasion of Ukraine has prompted an unprecedented response from the West: economic warfare. The Economist's experts, Patrick Foulis and Matthew Valencia, weigh in on whether sanctions will be enough to stop further aggression from Russia.

Crypto exchanges refuse to block Russian users

Amid a wave of firms cancelling services in Russia, cryptocurrency exchanges are standing by what they call "financial freedom". This as the conflict in Ukraine continues to weigh heavy on markets causing stocks to slump in the beginning of the week. We'll break it all down. And China is facing mounting pressure as the world's second-most powerful economy in the wake of the Ukraine crisis and trade woes.

Swift Sanctions on Russia: How Cutting Off Banks Applies Pressure

A powerful coalition of democracies have announced that they will cut off some Russian banks from the global payment system Swift.

Here’s how Swift works, and how the move could ramp up pressure on Russian President Putin.

Digital geopolitics - Russia is trying to build its own great firewall

Vladimir Putin, Russia’s president, has portrayed his aggression toward Ukraine as pushing back against Western advances. For some time he has been doing much the same online. 

He has long referred to the internet as a “CIA project”. His deep belief that the enemy within and the enemy without are in effect one and the same means that if Alexei Navalny, Mr Putin’s foremost internal foe, uses YouTube—his video of the president’s seaside palace was viewed more than 120m times—then YouTube and its corporate parent, Google, are enemies, too.

Faced with such “aggression”, Mr Putin wants a Russian internet that is secure against external threat and internal opposition. He is trying to bring that about on a variety of fronts: through companies, the courts and technology itself.

Jointly with China, Russia has stalled UN talks aimed at defining responsible state behaviour in cyberspace, instead insisting on “information sovereignty”—code for doing what ever it pleases.

Read THE ECONOMIST's full analysis HERE.

What's Next for U.S. and Russia as Tensions Grow Over Ukraine

A military buildup along the Ukrainian border is further straining ties between Russia and the U.S., after clashes over cybercrime, expulsions of diplomats and a migrant crisis in Belarus. WSJ explains what is deepening the rift between Washington and Moscow. 

 

Cyber bank robbers steal $1bn, says Kaspersky report

From BBC Business News –

“Up to 100 banks and financial institutions worldwide have been attacked in an "unprecedented cyber robbery", claims a new report.

Computer security firm Kaspersky Lab estimates $1bn (£648m) has been stolen in the attacks, which it says started in 2013 and are still ongoing.

A cybercriminal gang with members from Russia, Ukraine and China is responsible, it said.

Kaspersky said it worked with Interpol and Europol on the investigation.

It said the attacks had taken place in 30 countries including financial firms in Russia, US, Germany, China, Ukraine and Canada.

"These attacks again underline the fact that criminals will exploit any vulnerability in any system," said Sanjay Virmani, director of Interpol's digital crime centre.”

Read more>>

The Top Five Events in 2014

"The Top Five Events in 2014 is republished with permission of Stratfor."

By George Friedman

'Tis the season to make lists, and a list shall be made. We tend to see each year as extraordinary, and in some senses, each year is. But in a broader sense, 2014 was merely another year in a long chain of human triumph and misery. Wars have been waged, marvelous things have been invented, disease has broken out, and people have fallen in love. Nonetheless, lists are called for, and this is my list of the five most important events of 2014.

1: Europe's Persistent Decline

The single most important event in 2014 was one that did not occur: Europe did not solve its longstanding economic, political and social problems. I place this as number one because regardless of its decline, Europe remains a central figure in the global system. The European Union's economy is the largest in the world, taken collectively, and the Continent remains a center of global commerce, science and culture. Europe's inability to solve its problems, or really to make any significant progress, may not involve armies and explosions, but it can disrupt the global system more than any other factor present in 2014.

The vast divergence of the European experience is as troubling as the general economic malaise. Experience is affected by many things, but certainly the inability to find gainful employment is a central feature of it. The huge unemployment rates in Spain, Greece and southern Europe in general profoundly affect large numbers of people. The relative prosperity of Germany and Austria diverges vastly from that of southern Europe, so much so that it calls into question the European Union's viability.

Indeed, we have seen a rise of anti-EU parties not only in southern Europe but also in the rest of Europe as well. None have crossed the threshold to power, but many are strengthening along with the idea that the benefits of membership in a united Europe, constituted as it is, are outweighed by the costs. Greece will have an election in the coming months, and it is possible that a party favoring withdrawal from the eurozone will become a leading power. The United Kingdom's UKIP favors withdrawal from the European Union altogether.

There is significant and growing risk that either the European Union will have to be revised dramatically to survive or it will simply fragment. The fragmentation of the European Union would shift authority formally back to myriad nation states. Europe's experience with nationalism has been troubling, to say the least — certainly in the first part of the 20th century. And when a region as important as Europe redefines itself, the entire world will be affected.

Therefore, Europe's failure to make meaningful progress in finding a definitive solution to a problem that began to emerge six years ago has overwhelming global significance. It also raises serious questions about whether the problem is soluble. It seems to me that if it were, it would have been solved, given the threat it poses. With each year that passes, we must be open to the possibility that this is no longer a crisis that will pass, but a new, permanent European reality. This is something we have been pointing to for years, and we see the situation as increasingly ominous because it shows no signs of improving.

2: Ukrainian and Russian Crises

Historically, tensions between Russia and the European Peninsula and the United States have generated both wars and near wars and the redrawing of the borders of both the peninsula and Russia. The Napoleonic Wars, World War I, World War II and the Cold War all ended in dramatic redefinitions of Europe's balance of power and its map. Following from our first major event of the year, the events in Ukraine and the Russian economic crisis must rank as the second most important event.

Stratfor forecast several years ago that there would be a defining crisis in Ukraine that would be the opening to a new and extended confrontation between the European Peninsula and the United States on one side and Russia on the other. We have also forecast that while Russia has regional power, its long-term sustainability is dubious. The same internal factors that brought the Soviet Union crashing down haunt the Russian Federation. We assumed that the "little Cold War" would begin in the mid-2010s, but that Russian decline would not begin until about 2020.

We have seen the first act, and we continue to believe that the final act isn't imminent, but it is noteworthy that Russia is reeling internally at the same time that it is trying to cope with events in Ukraine. We do not expect Russia to collapse, nor do we expect the Ukrainian crisis to evolve into a broader war. Nevertheless, it seems to me that with this crisis we have entered into a new historical phase in which a confrontation with significant historical precedents is re-emerging. The possibility of conflict is not insignificant; the possibility that the pressures on Russia, internally and externally, might not speed up the country's own crisis cannot be discounted. Certainly the consequences of oil prices, internal economic dislocation, the volatility of the ruble and sanctions all must give us pause.

The Russians think of this as an event triggered by the United States. In the newspaper Kommersant, I was quoted as saying that the American coup in Ukraine was the most blatant in history. What I actually said was that if this was a coup, it was the most blatant in history, since the United States openly supported the demonstrators and provided aid for the various groups, and it was quite open in supporting a change in government. The fact that what I said was carefully edited is of no importance, as I am not important in this equation. It is important in that it reveals a Russian mindset that assumes that covert forces are operating against Russia. There are forces operating against it, but there is nothing particularly covert about them.

The failures of Russian intelligence services to manage the Ukrainian crisis and the weakening of the Russian economy raise serious questions about the future of Russia, since the Russian Federal Security Service is a foundation of the Russian state. And if Russia destabilizes, it is the destabilization of a nation with a massive nuclear capability. Thus, this is our second most important event.

3: The Desynchronization of the Global Economy

Europe is predicted to see little to no growth in 2015, with some areas in recession or even depression already. China has not been able to recover its growth rate since 2008 and is moving sideways at best. The United States announced a revision indicating that it grew at a rate of 5 percent in the third quarter of 2014. Japan is in deep recession. That the major economic centers of the world are completely out of synch with each other, not only statistically but also structurally, indicates that a major shift in how the world works may be underway.

The dire predictions for the U.S. economy that were floated in the wake of the 2008 crisis have not materialized. There has been neither hyperinflation nor deflation. The economy did not collapse. Rather, it has slowly but systematically climbed out of its hole in terms of both growth and unemployment. The forecast that China would shortly overtake the United States as the world's leading economy has been delayed at least. The forecast that Europe would demonstrate that the "Anglo-Saxon" economic model is inferior to Europe's more statist and socially sensitive approach has been disproven. And the assumption that Japan's dysfunction would lead to massive defaults also has not happened.

The desynchronization of the international system raises questions about what globalization means, and whether it has any meaning at all. But a major crisis is occurring in economic theory. The forecasts made by many leading economists in the wake of 2008 have not come to pass. Just as Milton Friedman replaced John Maynard Keynes as the defining theorist, we are awaiting a new comprehensive explanation for how the economic world is working today, since neither Keynes nor Friedman seem sufficient any longer. A crisis in economic theory is not merely an academic affair. Investment decisions, career choices and savings plans all pivot on how we understand the economic world. At the moment, the only thing that can be said is that the world is filled with things that need explaining.

4: The Disintegration of the Sykes-Picot World

Sir Mark Sykes and Francois Georges-Picot were British and French diplomats who redrew the map of the region between the Mediterranean Sea and Persia after World War I. They invented countries like Lebanon, Jordan, Syria and Iraq. Some of these nation-states are in turmoil. The events in Syria and Iraq resemble the events in Lebanon a generation ago: The central government collapses, and warlords representing various groups take control of fragments of the countries, with conflicts flowing across international boundaries. Thus the Iraqi crisis and the Syrian crisis have become hard to distinguish, and all of this is affecting internal Lebanese factions.

This is important in itself. The question is how far the collapse of the post-World War I system will go. Will the national governments reassert themselves in a decisive way, or will the fragmentation continue? Will this process of disintegration spread to other heirs of Sykes and Picot? This question is more important than the emergence of the Islamic State. Radical Islamism is a factor in the region, and it will assert itself in various organizational forms. What is significant is that while a force, the Islamic State is in no position to overwhelm other factions, just as they cannot overwhelm it. Thus it is not the Islamic State, but the fragmentation and the crippling of national governments, that matters. Syrian President Bashar al Assad is just a warlord now, and the government in Baghdad is struggling to be more than just another faction.

Were the dynamics of the oil markets today the same as they were in 1973, this would rank higher. But the decline in consumption by China and the rise of massive new sources of oil reduce the importance of what happens in this region. It still matters, but not nearly as much as it did. What is perhaps the most important question is whether this presages the rise of Turkey, which is the only force historically capable of stabilizing the region. I expect that to happen in due course. But it is not clear that Turkey can take this role yet, even if it wished to.

5: The Births of Asher and Mira

I was given two new grandchildren this year. For me, this must be listed as one of the five major events of 2014. I am aware that it is less significant to others, but I not only want to announce them, I also want to point out an important truth. The tree of life continues to grow new branches inexorably, even in the face of history, adversity and suffering. The broad forces of history and geopolitics shape our lives, but we live our lives in the small things. As much as I care about the other four matters — and I do — I care much more for the birth and lives of Asher and Mira and my other grandchild, Ari.

Life is experience in the context of history. It is lived in intimate contact with things that history would not notice and that geopolitics would not see as significant. "There are more things ... than are dreamt of in your philosophy," Hamlet said to his friend Horatio. Indeed, and their names are Asher, Mira and Ari. This must not be forgotten.

Have a happy New Year's, and may God grant you peace and joy in your lives, in spite of the hand of history and geopolitics.