The threats may be getting out of hand. AP
The threats may be getting out of hand. AP

Stirring trouble abroad to cover up domestic crises won't help Trump



In the American story of Rip Van Winkle, a kindly old man in New York State heads to the woods, drinks potent gin and falls asleep for 20 years. When he went to sleep in the late 1700s, America was a colony of Great Britain and the ruler was the loathed King George III.

When Van Winkle wakes up, he discovers that the world is turned upside down. The American colonies have revolted, King George lost the war, and the great Republic known as the United States of America is born.

Imagine a Rip Van Winkle now, waking to discover that a reality TV star is president of the United States, Britain is leaving the European Union, Qatar will stage the World Cup, and the president of France is someone he'd never heard of but who spent US$30,000 (Dh111,000) on TV make-up.

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Looking at American history, you would have to say that three great movements have tried to destroy the US since Van Winkle's day. One was the secessionist rebellion known as the Confederacy. A second was fascism – the Nazis and their allies. And a third was the Soviet Union, principally Russia. Rip Van Winkle today would be astounded to find that the current president of the United States, unlike any predecessor, appears to be soft on successors to all three of those great historic enemies of his country.

But Rip Van Winkle's story is not really about the past. It is about our inability to predict the future, based on what we know from the past. In what follows then – predictions about today's US – you are welcome to disregard me as being as out of touch as Rip Van Winkle. But the big story of the next year will be how far Republican candidates in the November 2018 congressional elections run away from president Trump. Many are publicly disappointed (or appalled) by Mr Trump's high-profile remarks about Russia, Confederate statues and neo-Nazis.

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More on the crisis

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All of the US House of Representatives and a third of the US Senate are up for election next year and Republican candidates are already asking one simple question: is Donald Trump good for me in my state with my voters? If the answer is no, Republicans will run away from the Trump presidency like scalded dogs.

A second prediction involves Trump administration staff. Serving the president used to be the most coveted job in America. But after high-profile firings – Priebus, Spicer, Scaramucci, Bannon – and many unfilled posts, why would any ambitious American quit his or her job to join a ship which, if not actually sinking, gives the appearance of being damaged and drifting?

Would you join a captain who has already made some top crew walk the plank and who steers the ship by means of Twitter and Fox News?

Even some relatively obscure helpers are leaving. Andy Hemming, unknown to most Americans, resigned last week. His task apparently was to find "positive" stories about the Trump presidency and circulate them to opinion-formers – a job some on Twitter felt comparable to finding penguins in the Sahara desert.

But here are two more positive predictions. The former military men – chief of staff John Kelly, national security adviser H R McMaster, defence secretary James Mattis and secretary of state Rex Tillerson – are key to the future. They represent honour, stability, selflessness in serving their country if, at times, they seem somewhat alarmed by their own president. And, another Trump bonus, Republicans in Congress and president Trump can agree on one big thing – the idea of a tax cut, and limited government. Handled well, this could be enough to unite the party next year, although how any Trump budget can be crafted to include money to build a wall with Mexico will tax the wisest minds on Capitol Hill.

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More on White House crisis from Opinion

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And two wild card 21st-century Rip Van Winkle predictions cannot entirely be discounted. The most troubling is a war. In 1989, president George H W Bush, a cautious, thoughtful man, invaded Panama when the abysmal behaviour of Panama’s leader, Gen Manuel Noriega, finally became unacceptable. A Panamanian opponent of Noriega said to me of the Americans: “You can play with the monkey, but you must never pull its tail.”

Noriega pulled America's tail and unwise foreign leaders, perhaps North Korea's Kim Jong-unmay do the same. The US military and its allies in the White House remain cautious, but American presidents have historically sought victories abroad when faced with difficulties at home. Anything is possible, even if a war on the Korean peninsula would be disastrous for all of us.

Finally, there remains one unlikely, yet plausible prediction. Donald Trump sees investigators closing in on those closest to him. He might hand out pardons like jelly beans, but he is already sliding towards being the least popular leader in North America since King George III. Pride hurt, might Trump quit? No chance. Well, as my old friend Rip Van Winkle might put it, I'm heading to the woods. Wake me up when it's over.

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Electric scooters: some rules to remember
  • Riders must be 14-years-old or over
  • Wear a protective helmet
  • Park the electric scooter in designated parking lots (if any)
  • Do not leave electric scooter in locations that obstruct traffic or pedestrians
  • Solo riders only, no passengers allowed
  • Do not drive outside designated lanes
DMZ facts
  • The DMZ was created as a buffer after the 1950-53 Korean War.
  • It runs 248 kilometers across the Korean Peninsula and is 4km wide.
  • The zone is jointly overseen by the US-led United Nations Command and North Korea.
  • It is littered with an estimated 2 million mines, tank traps, razor wire fences and guard posts.
  • Donald Trump and Kim Jong-Un met at a building in Panmunjom, where an armistice was signed to stop the Korean War.
  • Panmunjom is 52km north of the Korean capital Seoul and 147km south of Pyongyang, North Korea’s capital.
  • Former US president Bill Clinton visited Panmunjom in 1993, while Ronald Reagan visited the DMZ in 1983, George W. Bush in 2002 and Barack Obama visited a nearby military camp in 2012. 
  • Mr Trump planned to visit in November 2017, but heavy fog that prevented his helicopter from landing.
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Dubai launched the pilot phase of its real estate tokenisation project last month.

The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”