"You say you want a RevolutionWell, you knowWe all wanna change the world. . .
You'd better free your mind instead"
The Beatles, "Revolution 1, 1968
Trump wants to leave Iran's rulers in place. Forget revolution.
Keep the police. Keep the public employees. Keep the government structure. Keep all but the very top military. Keep the autocracy.
Jim Stodder put this insight together for me. Jim is a college classmate. He left school for a while amid the anti-war disturbances of the era, then returned to complete college and then get his Ph.D. in economics from Yale. He taught international economics and securities regulation at Boston University.
Guest Post by Jim Stodder
Will Trump offer Iran the same kind of deal he’s offering Venezuela and now Cuba?
The deal is – “Go ahead and run your own affairs; repress your people however you want. Just stop messing with U.S. security and give us a piece of that oil and gas revenue.”
He’s already made this deal explicit with Venezuela, mentioned it to Cuba, and said he’d like to discuss it with Iran. All that democracy stuff was for his American audience. For getting what he wants, democracy in these countries would be a bug, not a feature.
There are many things in such a deal that would appeal to Trump:
* It would be the easiest and quickest resolution.
* It would therefore win the most political support in the U.S.
* It offers many avenues of enrichment for his friends and family.
* Even if it’s just a ploy or falls apart, the prospect of such a deal makes it less likely Iran retaliates with serious terrorism like a dirty bomb. (It still has enough nuclear expertise to do it, and it doesn’t take an ICBM.)
* Controlling Iran’s oil gives the U.S. leverage over China. The Economist magazine says China gets 4% of its crude from Venezuela and more than 10% from Iran.
There’s a counterargument to the last point, however. It is that making Iran less secure for China makes Russia more important as its supplier. China gets about 20% of its oil from Russia, via several oil pipelines and ships from Russia’s Far East. It also gets almost 40% of its natural gas imports from Russia via the Power of Siberia 1 pipeline and LNG ships, again through Russia’s East.
Against this growing importance of Russia, the fact remains that 40% of China’s crude oil flows through the Strait of Hormuz, which Iran could choke off. On balance, I’d say that controlling Iran increases Trump’s leverage over China. And giving Russia more power has never been something about which Trump seems too concerned.
If I were advising Trump, I'd make the case. Given the direct benefits to him, he'd give it serious thought.
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