Joe Biden’s foreign policy as president has two signature declamations:
America is back – as the leader of NATO and as the leader of the Free World. In his first address to a global audience, Biden said:
“America is back, the transatlantic alliance is back I know the past few years have strained and tested the transatlantic relationship. The United States is determined to reengage with Europe, to consult with you, to earn back our position of trusted leadership.”
At the Munich security conference a year ago – the same conference where, over the weekend, Ukraine’s President Zelensky, pleaded for his country’s freedom and independence from Russia – Biden said:
“We are in the midst of a fundamental debate about the future and direction of our world. We’re at an inflection point between those who argue that, given all the challenges we face – from the fourth industrial revolution to a global pandemic – that autocracy is the best way forward, they argue, and those who understand that democracy is essential – essential to meeting those challenges.”
Biden has been true to these bedrock principles as he faces the prospects for war to return to Europe after 75 years.
In meeting this crisis, NATO has never been stronger – or more united.
NATO’s military forces have stepped up. Arms are flowing into Ukraine to help repel a Russian invasion.
Differences over the scope and stringency of sanctions if Russia invades have been bridged. All of NATL is all in on protecting Ukraine’s rights to determine its future – including a future with NATO in the years ahead.
The heart of this crisis indeed is perched on the fault-line between authoritarianism versus democracy.
Putin is not exporting Soviet communism; he is projecting power. So of course he would witness a nuclear weapons test exercise on Saturday with the president of Belarus – who stayed in power by crushing the movement supporting three women whose movement won the presidency in an election last year.
The Cold War is back thirty years after the Soviet Union died.
We are reliving its brinkmanship. The most frightening Cold War crisis was over the Soviet Union’s placement of nuclear missiles in Cuba, just 90 miles off Florida.
President Kennedy’s UN Ambassador, Adlai Stevenson, showed the U2 spy plane photos to the world in the UN Security Council. There was no doubt even as the USSR’s leaders lied about what they had done.
As we reach an era where private companies launch people into space, so private satellite imaging companies, such as Maxar Technologies, have replaced CIA satellites and Air Force spy planes.
The stationing of 150,000 Russian troops around Ukraine, the building of pontoon bridges for tanks, are all there is living colour.
Authoritarian Russia can hide at home, but nowhere else. In the Security Council last week, Secretary of State Antony Blinken showed the evidence and coalesced world opinion.
Twenty years ago, US Secretary of State Colin Powell also went to the Security Council, with intelligence that was devastatingly wrong. Saddam Hussein was not building and did not have weapons of mass destruction – which was the justification for the US (and allied, including Australia) invasion of Iraq.
Years later, Powell acknowledged the tragic mistake that he contributed to.
“It turned out, as we discovered later, that a lot of sources that had been attested to by the intelligence community were wrong. It has blotted my record, but you know, there’s nothing I can do to change that blot. All I can say is that I gave it the best analysis that I could.”
Memories are long, and Blinken understood this perfectly in the UN last week as he presented the evidence against Russia:
“Now, I am mindful that some have called into question our information, recalling previous instances where intelligence ultimately did not bear out. But let me be clear: I am here today, not to start a war, but to prevent one. The information I’ve presented here is validated by what we’ve seen unfolding in plain sight before our eyes for months.”
Biden said over the weekend: “We’re calling out Russia’s plans loudly, repeatedly, not because we want a conflict, but because we’re doing everything in our power to remove any reason that Russia may give to justify invading Ukraine, and prevent them from moving”
But it is likely not enough.
In the 60s and 70s, the Cold War embraced China too. Today’s Cold War is no different.
For Putin and China’s Xi, they see a weak America and a weak American president. One of Australia’s great defence and intelligence scholars, Hugh White of ANU, had these words last week on China and Taiwan:
“It was always a little hard to believe either America or China would really risk a war over the rocks and reefs of the South China Sea… To repeat, neither side wants a war.
So, as the next Taiwan crisis unfolds, both sides will have a big incentive to talk and act as if they are prepared to fight, hoping and expecting that this will deliver them a costless victory by making the other side back down.
But there is a fair chance they will both be wrong about this. Both will face a disastrous choice between humiliation and war. In such situations, leaders in the past have often chosen war. This is how wars happen despite neither side wanting or intending them.”
Substitute “Ukraine” for “Taiwan” and “Russia” for “China” and it is crystal clear that the Cold War strikes back.
Bruce Wolpe is a Ticker News US political contributor. He’s a Senior Fellow at the US Studies Centre and has worked with Democrats in Congress during President Barack Obama's first term, and on the staff of Prime Minister Julia Gillard. He has also served as the former PM's chief of staff.
Analysts and investors are eagerly awaiting Elon Musk’s big reveal—a fully functional autonomous vehicle that could revolutionise ride-hailing.
Tesla’s stock has soared 52% since Musk first announced the event in April, reflecting high hopes for the launch of its much-anticipated robotaxi.
The vehicle, dubbed the “Cybercab,” is said to be a sleek, two-seater without a steering wheel or pedals—straight out of the future.
Tesla also teased a ride-hailing app that will summon these driverless cars to pick up riders at their chosen locations.
Not convincing
But not everyone is convinced—some analysts warn that while Musk’s vision is bold, the timeline for these innovations may not deliver immediate results.
Musk has a history of overpromising on autonomous tech, and this event might be more about grand ideas than tangible products.
Tesla first floated the robotaxi idea in 2016, with Musk hinting at a future where owners could lease their cars to others for extra income.
If the software keeps pace with Musk’s ambitions, the future of driverless Teslas might be closer than we think.
The core consumer price index (CPI) climbed 3.3% year-over-year in September, signalling continued inflationary pressure in the U.S.
Month-over-month, the increase was 0.3%, slightly higher than the expected 0.2%, raising concerns about the Federal Reserve’s ability to ease policy.
This latest inflation data narrows the Fed’s room to manoeuvre, making a significant rate cut at their next meeting less likely.
In other economic news, weekly U.S. unemployment claims have risen to 258,000.
Latest numbers
Ticker’s Ahron Young spoke with Steve Gopalan from SkandaFX about the latest numbers.
Steve Gopalan discusses the impact of rising unemployment claims, inflation, and geopolitical tensions on the market, including the potential effects of Israeli strikes on Iran and China’s policies.
He also addresses expectations for the Fed reserve rate cut and near-term risks affecting the Australian economy and talks about how traders are preparing for China’s Finance Minister news conference on fiscal policy.
The increase in claims is partly attributed to the impact of Hurricane Helene and furloughs at Boeing.
Economists are closely watching how these factors will play into broader economic trends.
With inflation rising and unemployment numbers fluctuating, the economic outlook remains uncertain.
Tehran is threatening to target oil-rich Gulf states and other U.S. allies if their territories are used in any attack on Iran, Arab officials reveal.
Israel has warned Tehran of severe consequences after a recent barrage of Iranian ballistic missiles hit the country. In response, Iran vows to strike Israel’s civilian infrastructure and any Arab state that aids in the assault.
Countries like Jordan, the UAE, Saudi Arabia, and Qatar have already expressed concerns to the Biden administration, saying they don’t want to be part of any offensive actions against Iran.
These Gulf states, traditionally under U.S. protection, fear Iran could target their vital oil facilities if the conflict escalates.
With U.S. troops stationed across the region, officials are on high alert as Tehran’s threats loom over an area packed with American military personnel.
Tensions between Israel and Iran continue to rise, with both sides exchanging warnings of devastating consequences.
The energy-rich Persian Gulf, known for its stability under U.S. protection, could now be at risk as the situation remains tense.
The eyes of the world are focused on the region, as threats of conflict keep mounting.