The Geopolitical Consequences of the Ukraine War

By Alexander G. Markovsky, AM THINKER

On March 21, 2022, the President of the United States, Joe Biden, speaking of the Ukraine-Russia war, said: “there’s going to be a new world order out there, and we have to lead it.” The President did not elaborate on what this “new world order” would look like. What is the United States strategic aspiration, what it seeks to achieve, what it seeks to prevent?

As Yogi Berra observed, “If you don’t know where you are going, you will end up someplace else.” That is exactly what is happening.

Over the last thirty years, the inability to deal with Russia’s security concerns specifically expressed by Gorbachev, Yeltsin, and Putin eventually exploded into a military conflict.

Incensed by Putin’s audacity, America and the allies, in the collective rush to impose punitive economic sanctions, challenged the cohesion of international order by seeking remedies, which negate the functioning of the global economic system.

The current system is based on respect for contracts, sureness in the banking system, inviolability of private property, and economic interdependency. The scope of economic sanctions violated every aspect of the established order. America has weaponized the dollar as a tool for achieving political ends. The combination of constant threats, freezing foreign assets without a search warrant, and arbitrary expropriation of private properties without due process ostensibly for the global public good invokes memories of Bolshevism and raises the issue of power and legitimacy.

When existing arrangements are fundamentally altered, a new order must emerge as a practical accommodation to reality.

Regardless how the war ended, the new reality is that the sanctions seriously weakened Russia’s economy and greatly enhanced China’s geopolitical position. Isolated from the world economy, Putin performed a “reverse Nixon” and played the “China card.” Instead of peeling Russia away from China’s orbit, Biden forced Russia to embrace China.

The unity of objectives drives both countries to form an economic, political, and military alliance. As a result of sanctions, China can acquire a vast natural resource base in Russia. Russia would become an energy and raw materials supplier at prices substantially discounted from the world markets. China can also fulfill the opening left by Western companies that abandoned the Russian market, further magnifying her economic influence.

Having cheap energy and unlimited access to raw materials, China, which has become the world manufacturing plant, would be in a position to control the global economy and impel any foreign party, including the United States, whose actions are of concern to China.

If sustained, the sanctions on Russia will create a powerful Russia-China alliance that affirms the power of China and gives America a rival that sooner or later will diminish her economic power and lay low her influence over world affairs.

On the other hand, the United States and Western Europe, without cheap and reliable energy, easy access to raw materials, will face profound and insidious economic and political vulnerabilities.

Furthermore, by forming a coalition against Russia, Biden unintentionally, indeed contrary to his intention, is dividing the world and risking to upend American standing among the countries opposing sanctions or clamming neutrality. At the time of this writing, Russia, China, India, the Arab World, most of Latin America, and Brazil are in this camp.

China is taking advantage of the division and working to replace the United States as the world’s dominant economic and political power. One of the avenues is replacing American petrodollars with yuan.

Saudi Arabia and a few other countries are warming up to the idea. Given that the U.S. economic dominance is built on petro-dollars, if the American dollar is dethroned as the world reserve currency, it would devastate the U.S. economy.

At this juncture, America faces a fundamental strategic choice, though there is no evidence that the Administration is even aware of it. It needs to decide whether keep raising the ante, hoping that Putin blinks and leaves Ukraine, or use a pragmatic approach to make compromises to save whatever is left of Ukraine and harmonize its interests with Russia before  she consummates an alliance with China. The penalty for not doing it will result in shifting the balance of power toward China.

Thus far, as a matter of prudence, China has accepted the world order she had no part in making. However, the recklessness with which America has been using its dominance gave credence to the vitriolic Russian message about American hegemony and offered “moral” justification for China to use her economic might and growing political influence to revise the rules of the game.

It is unclear how China intends to reshape the world order generally and toward the United States specifically. One thing is clear – the world order envisioned by the communists cannot possibly be to our liking.

April 1, 2022 | 4 Comments »

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4 Comments / 4 Comments

  1. Hi, Raphael

    I see that you are responding to Peloni’s quote from the US Declaration of Independence, saying,

    Everyone in the world will now come under the heel of totalitarianism of one kind or another. We saw it coming, yet we were powerless to stop it.

    Remember that when the Declaration of Independence was penned, the world was also “under the heel of totalitarianism”; yet, by God’s grace, the Thirteen Colonies were able to throw off the yoke — not after what would be the French model (mob rule, leading to an empire, then to national defeat and then to a return to totalitrianism), but after the American Colonial model of men and woman fighting for a liberty to which they had previously grown accustomed.

    The OP said,

    The current system is based on respect for contracts, sureness in the banking system, inviolability of private property, and economic interdependency. The scope of economic sanctions violated every aspect of the established order.

    This “current system” describes the “Western World” (Japan, Australia, Europe, etc.) until recently, but it is not the norm in the rest of the world. Even in the West, of course, it is under severe attack, mainly from COVID “emergencies”, and a high-tech elite whose share of the world’s wealth is doubling ever few years. This elite has successfully been feeding the people of the world with a spiritual recklessness that attempts to destroy the moral and social infrastructure built up over thousands of years.

    The evil beast of the times is like a juggernaut, a Pagan shrine that is pulled through the streets by the devotees of its cult. When it rolls out of control, it is especially dangerous to those very devotees. In the same way, our best course is not to try to oppose this beast directly, but to exercise wisdom and stay clear of it.

    “Behold, He that keepeth Israel shall neither slumber nor sleep.”

    — Psalm 121

  2. This is one of the most important articles I have read in a long time. It heralds America’s denouement. America, as THE major world power, is done. This is a great tragedy. Everyone in the world will now come under the heel of totalitarianism of one kind or another. We saw it coming, yet we were powerless to stop it. Selfish, greedy, and power-hungry people engineered the whole thing. One wonders what they were thinking. Do they really think that they and their children can escape the chaos they have created?

  3. Prudence, indeed, will dictate that Governments long established should not be changed for light and transient causes; and accordingly all experience hath shewn, that mankind are more disposed to suffer, while evils are sufferable, than to right themselves by abolishing the forms to which they are accustomed. But when a long train of abuses and usurpations, pursuing invariably the same Object evinces a design to reduce them under absolute Despotism, it is their right, it is their duty, to throw off such Government, and to provide new Guards for their future security.

    This seems relevant.

  4. N. Korea tests largest nuclear capable ICBM as Team Biden moves to unilaterally disarm
    https://geostrategy-direct-subscribers.com/

    Biden is an evil genius! Nobody will ever guess whose side he’s on — not even Joe Biden! Great work in dealing with N. Korea, Joe! You’ve got Kim surrounded now — he’s trying to escape by ICBM!

    April Fools.