Saturday, July 23, 2016

Singapore: Small state, big weapons buyer





Singapore: Small state, big weapons buyer

In its quest to remain independent, Singapore has embarked on major arms deals with the US.


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by

Ali Mustafa


Singapore's determination to remain independent has fuelled military expansionism - but in a fast-changing global security environment, the militarised city-state may be forced to take sides.
"Our immediate part of the world is changing dramatically," said the Singaporean defence minister, Dr Ng Eng Hen, during a recent unveiling of Singapore's defenceplans.
In his opening remarks, the defence minister of this city-state of five million people alluded to the difficult balancing act Singapore has had to master since its independence. 
"In the latter half of the 20th century, US dominance in both security and economic spheres was unchallenged, and it provided the security umbrella for this region. In the 21st century, China's rise as an economic and military power is redefining the power dynamics in the Asia-Pacific," he said.
Singapore's foreign policy has long been based on economic partnerships, yet it has refused to enter into any military alliances to preserve these economic interests. Instead, it has devoted a large share of its budget to defence spending, transforming this once-small British outpost into a force to be reckoned with. Between 2008 and 2012, Singapore accounted for four percent of all global weapons imports, making it the fifth-largest importer of military hardware, according to the Stockholm International Peace Research Institute.
The country now spends 25 percent of its annual budget on defence. Its military spending has risen from $600m annually at the start of the 1980s to $12bn in 2013. By comparison, neighbouring Malaysia - whose population is more than five times bigger than that of Singapore - spent just $5bn last year.
"I think Singapore's position on security has been consistent for the past 45 years," said Tim Huxley, author of Defending the Lion City, considered by many to be the definitive work on Singapore's defence establishment.
The modern state of Singapore was born in 1965, when it separated from the Federation of Malaya. Its independence came in the midst of the Cold War, as the US war in Vietnam was intensifying. 
"Singapore had always been aware of its position as a Chinese enclave in a Muslim-concentrated Malay archipelago," wrote Pak Shun Ng, a military officer in the Singapore Armed Forces (SAF). Pak said insecurities stemming from Singapore's acrimonious separation from Malaysia in 1965 and the subsequent konfrontasi or confrontation with Indonesia caused Singapore to adopt a fiercely independent military and foreign policy.
The 1980s saw Singapore shift from a 'poisonous shrimp' to a 'porcupine' strategy, which aims to inflict intolerable costs on potential enemies and outlast attackers in the event of a conflict.
"The attitude in Singapore is that although the country has security partners, it does not have any allies," said Huxley. "Singapore has to rely on itself for its own defence."
From 'poisonous shrimp' to porcupine
"In a world where the big fish eat small fish and the small fish eat shrimps, Singapore must become a poisonous shrimp," said Lee Kuan Yew, the father of modern-day Singapore. Lee was echoing concerns that in case of a conflict, tiny Singapore would be overrun and thus had to adopt a defensive posture.
"Singapore has no territory to fall back on and to regroup its military in," said Wendell Minnick, the editor of Taiwan-based Defense News. "Over time Singapore has realised that the defence of its territory needs to be a 'pre-emptive equation' rather than a defensive one, much like Israel."
This realisation has transformed Singapore's defence policy from the "poisonous shrimp" philosophy of self-preservation to something more aggressive.
"I may not completely destroy you, but you'd have to pay a high price to subdue me, and you may still not succeed," said Brigadier General (and now Prime Minister) Lee Hsien Loong in 1984. The 1980s saw Singapore shift from a "poisonous shrimp" to a "porcupine" strategy, which aims to inflict intolerable costs on potential enemies and outlast attackers in the event of a conflict.
"By assuming a more offensive posture, Singapore changed its message from one of'we'll be here, don't come to us' to one of 'we'll take you on'," wrote Pak Shun Ng, the military officer.
Singapore's military acquisitions in the 1980s were based primarily on imports of advanced systems from the US.
Where East and West collide
Although an estimated 74 percent percent of Singapore's population is of Chinese origin, the country has preferred to do business with US defence contractors instead of with Chinese firms.
"They have a lot of American fighter jet capability, mostly third-generation F-16s and F-15s but also Apache helicopters and US-made drones," said Minnick.
"We are likely to see Singapore invest in equipment such as the US Joint Strike Fighter, commonly known as the F-35. The country will invest in high-tech equipment which can be networked, which will not require large numbers of personnel to operate it," said Huxley, given Singapore's limited manpower.
"Singapore's military modernisation trajectory must be viewed in the context of deepening territorial disputes and potential crises over selected islands in the South China Sea and the East China Sea," argues Michael Raska, a research fellow at the Military Transformations Programme at S Rajaratnam School of International Studies in Singapore. Raska told Al Jazeera that Singapore may face a tough balancing act if China intensifies its demands over the disputed islands.
"Singapore has good relations with both China and the US, the two major powers in the region," said Huxley. The balance between East and West puts Singapore in an awkward position. Singapore is politically and militarily oriented towards the US, said Huxley, but increasingly relies on China economically.
"One can think of circumstances in the future, in the event the US-China relationship deteriorates, Singapore may find itself in a fix," said Huxley.
Source: Al Jazeera
Politics US & Canada China Indonesia Israel

What's Happening to American Democracy? (Video)







What's Happening to American Democracy?

2016 

What's Happening to American Democracy?
A reality television superstar stands alongside a self-proclaimed socialist as two of the superstars in this year's American presidential election cycle. Who could have suspected that either Donald Trump or Bernie Sanders could win the title of the next President of the United States even a short six months ago? The country has never before witnessed such an overwhelmingly receptive response to anti-establishment sentiment, and the popularity of these two towering figures points to a profound metamorphosis within the mainstream of the population. An insightful two-part expose titledWhat's Happening to American Democracy?, produced by Al Jazeera, investigates the root causes behind these shifting perceptions.
As illustrated in the film, both Trump and Sanders are speaking to the country in a manner that evokes the need for meaningful change, but their approaches rest at opposite ends of the spectrum.
While it is usually customary for politicians to sell their ideas in a key of hope and positivity, Trump's rhetoric has only inflamed the financial and security anxieties of the populous. With unpredictable and highly volatile swagger, Trump has emerged as a political phenomenon, and one who has even the most seasoned pundits scratching their heads. The political insiders who are featured in the film cannot deny that Trump is connecting with the feelings of discontent within large segments of the country. But in the absence of clear-cut policies or political savvy, is he only appealing to their most barbaric reactionary instincts?
Both candidates publicly proclaim themselves as fiercely anti-establishment, and share frustrations over a political system that seems to be rigged against the existence of a true democracy. Their message has sparked a national outcry for political revolution, but the tenor created by both campaigns is a study in sharp contrasts. Whichever side of the fence the voters fall on - fearful anger or hope - their newfound activism indicates a rapidly evolving awareness within the country. What's Happening to American Democracy? does an admirable job of defining the cultural dynamic which allows candidates like Trump and Sanders to thrive. It's an environment where the middle class is feeling the squeeze, minority populations are growing in numbers and influence, and the true enemies of democracy are the large corporate interests who line the pockets of the political establishment.

Friday, July 22, 2016

It is time to accept the fact that Brexit may never actually happen

It is time to accept the fact that Brexit may never actually happen

theresa may angela merkelGerman Chancellor Angela Merkel and British Prime Minister Theresa May address a news conference following talks at the Chancellery in Berlin, Germany July 20, 2016. REUTERS/Stefanie Loos
The more time goes by, the more plausible it becomes that the UK may never actually leave the European Union.
Leaving the EU is so difficult, and the consequences are so economically damaging, that it may be easier for prime minister Theresa May's government to endlessly delay the process rather than to actually leave.
Morgan Stanley economists Jacob Nell and Melanie Baker published a fascinating note to investors this morning in which they attempt to figure out how the UK will actually leave the EU, and what the UK's post-Brexit relationship with Europe will look like. Nell and Baker do not make any specific predictions about how the UK will leave the EU, but they do point out two key facts:
  • The EU will not give the UK a deal in which Britain gets access to the single market but opts out of the "freedom of movement" requirement that lets EU migrants into the country. In fact, the EU cannot give this deal to the UK because it would represent an existential threat to the EU itself: If one country gets access to the single market while controlling its own immigration borders, then every country in the EU will want to do the same.
  • Leaving the EU will cause such massive damage to the UK economy that it might be political suicide for any government to actually leave despite the fact that a majority of people voted Leave in the EU Referendum.
brexitImmigration from the EU isn't that bad anyway. Morgan Stanley
You can sum up the problem in 10 easy steps:
  1. The Conservative government has a small majority of just 12 seats.
  2. Prime minister Theresa May is pro-Remain.
  3. A majority of MPs are pro-Remain. "Parliament had a clear pro-Remain bias since over 70% of all MPs and over 50% of Conservative MPs supported Remain," according to Morgan Stanley.
  4. The government faces a general election in 2020, right after the UK — in theory — leaves the EU.
  5. One million UK voters live in EU countries. The vast majority of them will vote against any government that threatens their EU residency status.
  6. Reduced access to the single market will hurt the economy. The mere prospect of it is already triggering a recession in the second half of this year.
  7. Do the Tories really want to go into the 2020 election defending a policy that hurts the economy and increases unemployment?
  8. The EU will not offer the UK a "special deal" featuring full access to the single market but control of UK borders because such a deal would encourage other nations to leave. Nationalist movements, and anti-EU sentiment, are on the rise across Europe.
  9. The EU can withdraw the UK's bank "passport" that gives UK financial services firms access to the single market. Do the Tories want to go into 2020 defending a policy that decimates The City, which (according to Morgan Stanley) pays 11% of the UK's entire tax base?
  10. Triggering Article 50 is reversible! Not many people know this. But the UK can formally trigger its Article 50 request and then withdraw the request before Brexit actually takes place, if the country wants to.
On those assumptions, May's government is heavily incentivised to drag its feet over the Leave negotiations. It would be much easier for the Tories to be seen to be negotiating an exit, while not actually exiting, than actually leaving Europe. Especially when 2020 comes around. (And especially when there is a loophole in Article 50 that lets us back in with no consequences.)
The new government after 2020 will face a similar choice. Unless that government is an expanded Tory majority dominated by hardcore eurosceptics, then you should expect Brexit to be pushed back even further as "crucial" trade negotiations continue ... indefinitely.

Apple is about to take a huge risk with its new iPhone strategy

Apple is about to take a huge risk with its new iPhone strategy

Tim CookDrew Angerer/Getty Images
Sales of the iPhone, iPad, and Mac are all dropping, which is having an effect on Apple's bottom line.
Apple needs to release new products this fall to turn things around, especially a new iPhone, given that iPhone 6S sales have been disappointing.
Wall Street analysts have come to a consensus about what this fall's iPhone — let's call it the iPhone 7 — will look like and include.
And it's starting to become clear that Apple is taking a huge risk.
The iPhone 7 will have a few upgrades, according to a Deutsche Bank research note, but ultimately will look a lot like the iPhones currently on the market.
Essentially, Apple is moving to a three-year upgrade cycle. Previously, Apple came out with a new model every other year. In the off years, it took the same basic hardware and upgraded the components.
This year would be the third year that the iPhone would sport the same design it introduced in 2014. And that could depress sales.
A Quartz survey suggests that only about 10% of iPhone-owning adults are planning to buy a new iPhone this year if it isn't redesigned.
iPhone 7 Boitier DoreNowhereelse.fr
On an anecdotal level, Tech Insider's Steve Kovach says he's considering skipping this latest iPhone upgrade, even though he's been on a cycle where he upgrades every other year.
Essentially, Apple may be turning the two-year refresh cycle into a three-year cycle. (Earlier this year, Apple confirmed it plans for iPhones to have a three-year lifespan for its first owner.)
That means people would buy fewer iPhones.
Even Apple may be producing fewer iPhone 7 units this fall because it expects softer demand, according to Deutsche Bank researchers, although the iPhone 7 may end up selling better than the iPhone 6S:
"However, a [year-over-year] production decline does not necessarily imply a YoY sales decline for iPhone 7 (vs iPhone 6S) ... Apple seldom repeats a mistake, so we believe it will manage iPhone 7 production volumes conservatively."
Of course, the upside to this is that if Apple releases a compelling, brand-new, strong-selling iPhone in 2017, it could find a "powder keg" of customers ready to upgrade.
Here's what Deutsche Bank analysts are expecting from the iPhone 7, based on its supply-chain checks:
  • A "Plus" model with a dual camera for better zoom and 3GB of RAM
  • A standard model with an improved camera and optical image stabilization
  • Better sound — possibly stereo sound
  • "Professional class water-proofing"
  • A home button that uses motors to simulate a click, which would last longer than the current home button
  • A new color — black, or possibly dark blue, according to rumors — so there's a version that looks different than current iPhones
  • The elimination of the 3.5 mm headphone jack, as has been discussed endlessly. Headphones will instead plug in through Apple's Lightning charging port.
  • A Lightning-to-audio dongle included with the iPhone 7 — not a pair of Lightning headphones.
More: Apple iPhone 7

STOCKS FALL: Here's what you need to know

STOCKS FALL: Here's what you need to know

Pig diving fallingReuters
US stocks fell for the first time in 10 days on Thursday, temporarily ending a streak that took the market to new highs for the first time in over a year. 
Intel shares fell the most on the Dow Jones Industrial Average, by 4%, after the company's earnings results on Wednesday showed that its most important business — the data center group — slowed last quarter.  
First, the scoreboard:
  • Dow: 18,517.23 -77.80 (-0.42%)
  • S&P 500: 2,165.17, -7.85, (-0.36%)
  • Nasdaq: 5,073.90, -16.03, (-0.31%)
  • WTI crude oil: $44.75, -$1.00, (-2.19%)
  1. The Department of Justice is suing to stop the mergers of four health insurance giants. The department filed suits to block the merger of Anthem and Cigna as well as Aetna and Humana. The combined value of the deals was roughly $91 billion. The suits, filed in US District Court in Washington, DC, said that the mergers would be anticompetitive. "If the big five were to become the big three, not only would the bank accounts of the American people suffer, but the American people themselves," said Attorney General Loretta Lynch. 
  2. Warren Buffett, Jamie Dimon and 11 other corporate titans want to change some of Wall Street's worst business practices. They signed on to a list of suggested changes for companies to adopt, titled"Commonsense Corporate Governance Principles." Among the six proposals, companies should not have to report earnings guidance, they should be clear about the difference between GAAP and adjusted earnings, and boards should have an independent lead director, especially if the CEO has a dual role on it. To the final point, Business Insider's Linette Lopez noted that Dimon is both CEO and chairman of JPMorgan, and has fought hard to maintain control of the bank. Other signees to the letter included GM CEO Mary Barra and ValueAct Capital CEO Jeff Ubben.
  3. Exxon is buying InterOil in a deal worth as much as $2.5 billion. The energy giant outbid Oil Search to boost its business in Papual New Guinea, where InterOil has a huge presence, and to strengthen its liquefied natural gas position. In a statement on Thursday, Exxon said it will pay $45 per share for the oil and gas company, which has a market cap of about $2.4 billion. In addition, InterOil shareholders will get an additional contingent resource payment of $7.07 per share for each trillion cubic feet equivalent (tcfe) of the Elk-Antelope field that's above 6.2 tcfe, up to a maximum of 10 tcfe. 
  4. Something surprising happened with existing home sales in June. The sales rose 1.1% to a seasonally adjusted annual rate of 5.57 million, beating an expected fall, according to the National Association of Realtors. But that wasn't all. "The gain is even more surprising given a continued shortage of homes available for sale, with inventory down almost 6% compared to the same time a year ago," noted Zillow chief economist Svenja Gudell in a note. She believes limited inventory and high prices will continue to thwart a return to a 'normal' market. 
  5. In other housing data, home prices rose 0.2% month-over-month in May, less than expected, according to the Federal Housing Finance Agency. Economists had expected prices to rise by 0.4%, according to Bloomberg. 
  6. Initial jobless claims unexpectedly fell last week to 253,000, lower than economists' expectations for an increase to 265,000. Claims have not risen above 300,000 for 72 straight weeks — the longest stretch in 43 years. The data are often volatile around this time of year because of seasonal adjustment issues, but they still send an upbeat message about labor-market conditions.
  7. Pandora rejected an offer to sell itself for more than $3.4 billion. The Wall Street Journal reported that the offer came from Liberty Media CEO Greg Maffei, whose company controls Sirius XM. It was more of an exploration than a firm offer, and Pandora also lent ears to Apple and Amazon, sources told the Journal. In March, Pandora brought back founder Tim Westergren to be its CEO and help launch an on-demand product to compete with the likes of Spotify and Apple Music. This endeavor has not yet excelled or flopped. 
Additionally:

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