Obama’s Foreign Policy Failures Multiply
If you thought you’d heard the end of Obama’s foreign policy mistakes in Syria, think again. America’s longtime Mideast ally, Saudi Arabia, is now displaying its disgust for Obama’s work.
Saudi Arabia was recently offered a long-coveted seat on the U.N. Security Council. But the Saudis unexpectedly flipped the U.N. the diplomatic bird. How shocking was this move? No nation had ever turned its back on the increased power and prestige that come with a seat on the Council.
The Saudis were blunt in their reasoning, saying they couldn’t do the job because of others’ failures.
“Double standards existing in the Security Council prevent it from performing its duties and assuming its responsibilities… leading to the continued disruption of peace and security, the expansion of the injustices against peoples, the violation of rights, and the spread of conflicts and wars.”
The Saudis continued, “Allowing the ruling regime in Syria to kill its people and burn them with chemical weapons in front of the entire world and without any deterrent or punishment is clear proof and evidence of the U.N. Security Council’s inability to perform its duties.”
When questioned about the decision, Saudi Arabia indicated that its anger is aimed at Obama. Saudi Arabia’s intelligence chief, Prince Bandar bin Sultan (who spent 22 years as the Saudi ambassador to Washington), made it known that relations between Saudi Arabia and the U.S. are getting worse. The relationship between the two countries was already strained because of America’s missteps in Egypt, Libya and Iran.
More importantly, bin Sultan told Reuters that Saudi Arabia will cut its cooperation with U.S. intelligence agencies. Unfortunately, I would venture to guess that most Americans don’t understand the significance of this shift.
To understand the importance of Saudi support in the Mideast, you have to understand the sectarian nature of the fighting taking place. Syrian leader Bashar al-Assad and his allies, Iran and Hezbollah, are Shia Muslim. Meanwhile, the Syrian rebels – along with Al Qaeda – are mostly Sunnis. The sectarian lines are similar to those seen during the Iraq war.
While Syria was spinning out of control, Saudi Arabia stepped up to help the non-Al Qaeda Sunni rebel factions. America encouraged this Saudi engagement and convinced the entire leadership of the Mideast that it was serious about removing Assad.
Once it became clear that Obama was anything but serious, the Sunni rebels turned to Al Qaeda, a Sunni Muslim organization.
Now, according to Saudi intelligence estimates, as many as 6,000 Al Qaeda fighters have flooded into Syria. They’ve filled the power vacuum left by a retreating and inconsistent United States. In essence, the Syrian civil war has breathed new life into Al Qaeda. The Saudis believe that by spring, another 6,000 to 8,000 fighters will have arrived as reinforcements.
Losing Saudi Arabia’s intelligence support couldn’t have come at a worse time. Until now, Saudi Arabia has been a vital ally in the fight against Al Qaeda. The Saudis have allowed America to operate drones in Saudi airspace for attacks in Yemen. They’ve also cracked down on Al Qaeda and friends inside their own country, as well as in the strategically important Gulf Oil states.
Furthermore, Saudi Arabia has been, along with Israel, our best partner while trying to contain Iran’s nuclear program. The Saudi’s rightly fear a nuclear-armed Iran just across the already-tense Persian Gulf.
And now, Saudi Arabia, Jordan and Israel also fear a radicalized Syria, controlled by either Al Qaeda or Iran. America’s unorganized and hasty retreat from the Mideast leaves our one-time allies high and dry, forcing them to look to China and others to fill the power void Obama has left.
The losers in this whole debacle are the exact people America should’ve been supporting: Western-friendly Muslims who might make peace with Israel and be allied with the Saudis.
Your eyes on the Hill,
P.S. – Have you had a chance to check out the Political Intelligence Portfolio? We think you’ll find this really interesting. Check it out below. We also released the October issue of Constitutional Wealth today. If you missed out, just click here to find out how you can sign up.
|Political Intelligence Portfolio|
|*The recommendations below are intended to provide examples and
explanations of the profitable side of political intelligence.
|Company||Symbol||Current Price||YTD Gain|
|Boston Scientific Corp||BSX||$11.62||102.79%|
|Explanation||Several factors are working in the medical device industry’s favor. One is an aging population that will keep the demand for healthcare products rising. The other is Obamacare, which will push millions more Americans into the healthcare system. Boston Scientific has also recently gained FDA approval for a new catheter and has improved some of its financial numbers, such as profit margins. It’s no surprise that Boston Scientific is booming – the government is all-in for them.|
|Delta Airlines Inc||DAL||$26.31||121.65%|
|Explanation||All year, competing airlines have been keeping a wary eye on the possibility of a U.S. Airways/American Airlines merger. But those fears were laid to rest when the federal government and six states sued to block the deal, ostensibly to protect consumers from higher fares and extra fees, as well as to continue fostering competition industry. Delta had already been doing well – they have some of the lowest non-fuel costs in the industry, and they’re revenue performance is on track for a 4% increase in Q3 alone – and the failed merger only bolstered the airline’s intrinsic value. When the government is your enemy’s enemy, the government is your friend.|
|Explanation||Celgene is something of an FDA darling. The company’s success stems from its drug discovery and acquisition focus, and it currently has six commercial stage products that are expected to generate $6.2 billion in 2013. That doesn’t even include royalties from Focalin and Ritalin. Any time the FDA smiles on a drug company, there are profits to be had.|
|Pioneer Natural Resources Co||PXD||$210.77||97.74%|
|Explanation||Things are going well for Pioneer right now. For starters, the government is gung-ho for energy independence, which is music to the company’s ears. Better yet, Pioneer is the largest operator in the Sprayberry/Wolfcamp oil field, which is recognized as the top oil field in the U.S. As long as Obama continues to wage his war on coal, Pioneer should be sitting pretty.|
|Pitney Bowes Inc||PBI||$19.45||82.80%|
|Explanation||PBI has spent the better part of 2012 and 2013 ensuring their future profitability by entering into contracts to provide goods and services to the federal government, including branches like the Secret Service, the Department of the Navy, and the Social Security Administration. These contracts are worth more than $1.5 billion in revenue, but most importantly, government tailwind is the best insurance out there for a company’s profitability.|