Weekly Foreign News Debrief: September 3, 2016

**China**
Chinese Schools Reforming Along Red Army Lines

China has implemented a new propaganda campaign aimed at turning students into nationalists. Based on themes of sacrifice for and service to the state, the Education Ministry is producing music, television shows, documentaries, and more which are specifically aimed at the nation’s children. Experts speculate this is designed to prevent the people of China from falling into Middle-Class softness and ensure they retain their loyalty to the State.

China Developing New Bomber

There’s not much in the way details, but given that China’s military “development” is largely relegated to stealing technology from other nations, this will most likely be based on something along the lines of the B-52 or the B-2.

China And The Middle Class Trap

With over 300M Chinese citizens having reached Middle-Class status and a plurality of their subjects having risen as high as they can without Party membership, China is about to fall into the Middle-Class Trap (MCT). The MCT refers to the growth of a developing economy into a mid-tier (defined by GDP/Capita, not by net GDP) economy and stagnating. Once a significant population within the nation reaches Middle Class status, growth in State-Run industries begins to lag as the supply of credit used to fuel the growth of these industries begins to lag behind demand.

In order to survive, China MUST transition to a free market economy. Which is the one thing the Party is unwilling and unable to do.

Chinese Bubble to Burst

Bridgewater Associates, one of the largest hedge funds in the world, is expecting the Chinese economy to burst soon due to the unsustainable growth of debt which this debrief has touched upon in the past. However, the associates at Bridgewater have pointed out the majority of this debt is denominated in Yuans and the People’s Bank of China will be more than willing to bankrupt a number of the banking firms in order to protect the Chinese manufacturing and industrial sector. Given that the Second-Tier Banks are one bad week away from a repeat of the Great Recession, such a move would give the People’s Bank the excuse to nationalize them.

Kyrgyz Terrorist Sets Off Car Bomb in Chinese Embassy

Three Kyrgyz nationals working as Embassy personnel were wounded and the driver killed in the Kyrgyzstani capital of Bishkek after a suicide bomber detonated his car on the Embassy grounds.

Chinese Plans For Eurasian Trade Corridor Makes It Terror Target

In previous Debriefs, it’s been noted that China is attempting to create a land route for trade with Pakistan. Unreported was China’s plans to extend this trade corridor – originally thought to be a means of reaching Pakistani ports in the Indian Ocean – through Afghanistan and into the Middle East. With the Uighur population in Xinjiang (also known as East Turkestan) growing more restive, China can expect to see more terror attacks from Islamic Militants as they begin to move into the Middle East.

**Russia and Ukraine**
A Look Into the Cycle of Provocations And Glastnost In Ukraine

Russia has been saber rattling and then backing off from their aggressive posture in a cycle for a while now. The folks over at The Daily Signal have a detailed report on how this is being carried out. As to why? I can only speculate, but I believe it is to lull the West into a false sense of security.

US Imposes New Sanctions on Russia

Reacting to Russia’s continued provocations in Ukraine, the US Treasury Department has hit Russia with a range of new sanctions.

Russia Deploys Coastal Defense Division to Chukotka in Bering Sea

Chukotka is only 50 Miles from Alaska. Make of that what you will.

Russia Moving Against Finland

There’s been speculation Putin is trying to reforge the Soviet Union – under new leadership – out of a revanchist desire to see Russia be made great again. Recent moves in the Baltic indicate Finland may be at risk of Russian action next. Historically, Finland has been the battleground between Russia and Sweden before becoming first a Grand Duchy of the Russian Empire and then later a satellite of the Soviet Union. Due to Finland having fought alongside the Nazis in WWII – an act of desperation following first the Winter War and then the Continuation War against the Soviets – expect Russian media to begin painting the current government (dominated by the Center-Right National Coalition Party) as Fascists when the time comes.

For those wondering, the NCP is a Liberal-Conservative party, which in European parlance would make them the equivalent of the average Conservative or Conservatarian in the Anglo-Sphere. This is in contrast to the more Aristocratic and Hierarchical communal forms of “Conservatism” which are most prevalent in Europe.

**Europe**
Sweden To Introduce Conscription

Sweden is expected to bring back compulsory military service starting in 2019. Men and women will be expected to fill out questionnaires at age 17, and will be enrolled upon reaching age if they are selected. Surprisingly, 72% of Swedes polled support the move.

Ireland to Appeal Apple Ruling

Saddled with a $13G tax ruling by the European Commission, Apple is confident the Irish appeal will overturn the ruling. Fine Gael – the ruling Liberal-Conservative and Christian Democratic party – and Fianna Fail – the Irish Republicanist and Center-Right party currently leading the opposition – have both agreed to support the appeal.

Merkel Losing Allies

Coming as no surprise to anyone who has access to anything beyond official German state-run media, Chancellor Merkel is fast running out of allies in Berlin. Between the Brexit vote, the rise of Eurosceptics in France and the Low Countries, increasing crime associated with migrants in Germany – much of it covered up due to the sexual nature of the attacks on ethnic Germans by North African and Middle Eastern migrants – and a rising populist movement in PEGIDA, Merkel is starting to feel the pressure in the polls. This has already resulted in rumors that Christian Democratic Union’s Bavarian wing – the Center-Right Christian Social Union, whose ties to the CDU are as tenuous as Bavaria’s ties to Germany at the best of times – may be splitting away from the traditional political alliance.

Germany and Italy to Get Tough on Migrants

Germany and Italy have both announced they will begin forcibly repatriating individuals denied asylum in their countries back home. Given Merkel’s past resistance to anything along those lines, it can be assumed the pressure on her is greater than ever.

Migrants Continue To Invade Europe

The numbers of new individuals making the crossing from North Africa to Italy is on the rise again. With Libya once more a failed state and North African states unwilling to play host to hordes of unemployed – and unemployable, given the state of the North African economy – young men, the number of new attempts to cross the Med for Europe are on the rise. Deaths at sea have already outpaced the number of dead migrants for all of 2015, and are expected to continue rising before the end of the year.

France to Dismantle Calais Jungle

The Interior Minister has announced plans to remove the 10k migrants currently squatting in fields near the Calais end of the Channel Tunnel, and move them to another location further from the terminal. In order to provide even the meager level of security available to truckers moving to and from the UK through the tunnel, the French Police are having to maintain almost two-thousand full-time law enforcement personnel. And everyone knows those numbers are not enough.

**South America**
Brazil Ousts President

Voting 61-20 for impeachment and removal, the Senate of Brazil removed Dilma Rousseff from the Presidency of Brazil after an almost year long struggle over corruption in the Brazilian Government. She had previously been suspended in May for manipulating the nation’s budget in order to hide evidence of mounting economic problems. While this means the fall of the radically leftist Worker’s Party, the successor – the centrist Brazilian Democratic Movement Party led by Interim President Michel Temer – is just as corrupt as the Worker’s Party. Namely because the BDMP was a historic part of the governing coalition with the Worker’s Party over the past 13 years. Temer is so unpopular among the people of Brazil that many of his named cabinet ministers have already resigned – including his Anti Corruption and Planning Ministers due to Temer’s refusal to investigate corruption related to the Brazilian state oil company, Petrobras.

I told you last week the next guy wouldn’t be any better. I wasn’t kidding.

The fact people are rioting isn’t going to help much, either…

Hundreds of Thousands Rally Against Maduro in Caracas

Thanks to Ruy for keeping us informed of what’s happening in Venezuela. The BBC has a good summary of what happened.

**Africa**
Gabon Is Burning, And France Is To Blame

Once part of the French colonial empire in Africa, Gabon has been an actual example of what the left refers to as neo-colonialism – the use of economic, political, and military pressure to transform the leaders of a nation into the puppets of another. France has long propped up dictators in Gabon in order to ensure access to cheap raw materials – notably oil – and thus turned Gabon into the personal fiefdom of the Bongo family. Attempts by French politicians to end the policy – known as Francafrique – have been rather difficult due to the wealth which African regimes – such as the Bongos – have poured into French elections to assist politicians who will help them stay in power.

Now, following the defeat of Chinese-native Ping in the Gabon elections, the nation is burning. Ping, it should be noted, worked for the current President’s father after he moved to Gabon from China. As such, Ping was complicit in the corruption occuring there.

SpaceX Accident Stalls African Internet Plans

When the SpaceX Falcon 9 rocket blew up on the pad Thursday, it destroyed the AMOS-6 satellite which had been its payload. Constructed in Israel, the satellite was part of Facebook’s plan to bring satellite internet to rural Africa. Owned and operated by Spacecom out of Israel, Facebook had leased a three-year deal to provide cheap communications for Sub-Saharan Africa.

Nigera and South Africa Enter Recession

Driven by a slump in commodities prices, South Africa and Nigeria have seen their GDP slump into recession. Though more economically diverse, South African financial firms invested heavily in Nigeria’s oil industry and are currently feeling contractions from the oil slump in their rival nation. Given the recent instability in Nigerian President Zuma’s government, this is only making South African investment firms more skittish.

Suicide Bomber Kills 15 in Mogadishu

Al-Shabaab claimed responsibility. For those unfamiliar, al-Shabaab has previously flirted with the idea of joining ISIS and has a surprising number of US citizens of Somali ancestry fighting for them.

Protests Rock Zimbabwe

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