By Heather Cox Richardson
March 4, 2025
Source: Letters From An American
Screenshot from BBC News
As seemed evident even at the time, the ambush of Ukraine president Volodymyr Zelensky in the Oval Office on Friday was a setup to provide justification for cutting off congressionally approved aid to Ukraine as it tries to fight off Russia’s invasion. That “impoundment” of funds Congress has determined should go to Ukraine is illegal under the terms of the 1974 Impoundment Control Act, and it is unconstitutional because the Constitution gives to Congress, not to the president, the power to set government spending and to make laws. The president’s job is to “take Care that the Laws be faithfully executed.”
It was for a similar impoundment of congressionally appropriated funds for Ukraine, holding them back until Zelensky agreed to tilt the 2020 election by smearing Joe Biden, that the House of Representatives impeached Trump in 2019. It is not hard to imagine that Trump chose to repeat that performance, in public this time, as a demonstration of his determination to act as he wishes regardless of laws and Constitution.
On Sunday, Nicholas Enrich, the acting assistant administrator for global health at the United States Agency for International Development (USAID) released a series of memos he and other senior career officials had written, recording in detail how the cuts to “lifesaving humanitarian assistance” at the agency will lead to “preventable death” and make the U.S. less safe. The cuts will “no doubt result in preventable death, destabilization, and threats to national security on a massive scale,” one memo read.
Enrich estimated that without USAID intervention, more than 16 million pregnant women and more than 11 million newborns would not get medical care; more than 14 million children would not get care for pneumonia and diarrhea (among the top causes of preventable deaths for children under the age of 5); 200,000 children would be paralyzed with polio; and 1 million children would not be treated for severe acute malnutrition. There would be an additional 12.5 million or more cases of malaria this year, meaning 71,000 to 166,000 deaths; a 28–32% increase in tuberculosis; as many as 775 million cases of avian flu; 2.3 million additional deaths a year in children who could not be vaccinated against diseases; additional cases of Ebola and mpox. The higher rates of illness will take a toll on economic development in developing countries, and both the diseases and the economic stagnation will spill over into the United States.
Although Secretary of State Marco Rubio promised to create a system for waivers to protect that lifesaving aid, the cuts appear random and the system for reversing them remains unworkable. The programs remain shuttered. Enrich blamed “political leadership at USAID, the Department of State, and DOGE, who have created and continue to create intentional and/or unintentional obstacles that have wholly prevented implementation.”
On Sunday, Enrich sent another memo to staff, thanking them for their work and telling them he had been placed on “administrative leave, effective immediately.”
Dangerous cuts are taking place in the United States, as well. On Friday, on Joe Rogan’s podcast, Musk called Social Security, the basis of the U.S. social safety net, a “Ponzi scheme.” Also on Friday, the Social Security Administration announced that it will consolidate the current ten regional offices it maintains into four and cut at least 7,000 jobs from an agency that is already at a 50-year staffing low. Erich Wagner of Government Executive reported that billionaire Elon Musk’s “Department of Government Efficiency” (DOGE) team had canceled the leases for 45 of the agency’s field offices and is urging employees to quit.
The acting commissioner of the agency, Leland Dudek, a mid-level staffer who got his post after sharing sensitive information with DOGE, blamed former president Joe Biden for the cuts. In contrast, Senator Ron Wyden (D-OR) pointed out that the system currently delivers 99.7% of retirement benefits accurately and on time. He warned that the administration is hollowing it out, and when it can no longer function, Republicans will say it needs the private sector to take it over. He called the cuts “a prelude to privatization.”
“The public is going to suffer terribly as a result of this,” a senior official told NPR. “Local field offices will close, hold times will increase, and people will be sicker, hungry, or die when checks don’t arrive or a disability hearing is delayed just one month too late.”
In South Carolina, North Carolina, and Georgia, more than 200 wildfires began to burn over the weekend as dry conditions and high winds drove the flames. Firefighters from the Forest Service helped to contain the fires, but they were understaffed even before Trump took office. Now, with the new cuts to the service, prevention measures are impossible and there aren’t enough people to fight fires effectively and safely. South Carolina governor Henry McMaster (R) declared a state of emergency on Sunday.
Josh Marshall at Talking Points Memo picked up something many of us missed, posting today that Trump’s February 11 “workforce optimization” executive order is a clear blueprint for the end goal of all the cuts to the federal government. The order says that departments and agencies must plan to cut all functions and employees who are not designated as essential during a government shutdown. As Marshall notes, this is basically a blueprint for a skeleton crew version of government.
But for all that the administration, led by DOGE, insists that the U.S. has no money for the government services that help ordinary people, it appears to think there is plenty of money to help wealthy supporters. In February, the cryptocurrency bitcoin experienced its biggest monthly drop since June 2022, falling by 17.5%. On Sunday, in a post on his social media site, Trump announced that the government will create a strategic stockpile of five cryptocurrencies, spending tax dollars to buy them.
Supporters say that such an investment could pay off in decades, when that currency has appreciated to become worth trillions of dollars. But, as Zachary B. Wolf of CNN notes, “for every bitcoin evangelist, there is an academic or banker from across the political spectrum who will point out that cryptocurrency investments might just as easily go up in smoke, which would be an unfortunate thing to happen to taxpayer dollars.”
The first three currencies Trump announced were not well known, and the announcement sent their prices soaring. Hours later, he added the names of the two biggest cryptocurrencies, including bitcoin. After the initial surges, by Monday prices for the currencies had fallen roughly back to where they had been before the announcement, making the announcement look like a pump-and-dump scheme. Economist Peter Schiff, a Trump supporter, called for a full congressional investigation, suggesting that someone other than Trump might have written the social media posts that set off the frenzy and wondering who was buying and selling in that short window of time.
Also on Sunday, the administration announced it would stop enforcing anti-money-laundering laws that were put in place over Trump’s veto in 2021 at the end of his first term and required shell companies to identify the people who own or control them. Referring to the law as a “Biden rule,” Trump called the announcement that he would not enforce it “Exciting News!” The Trump Organization frequently uses shell companies.
A world in which the government does not regulate business or address social welfare or infrastructure, claiming instead to promote economic development by funneling resources to wealthy business leaders, looks much like the late-nineteenth-century world that Trump praises. Trump insists that President William McKinley, who was president from 1897 to 1901, created the nation’s most prosperous era by imposing high tariffs on products from foreign countries.
Trump confirmed today that he will go forward with his own 25% tariffs on goods from Mexico and Canada and an additional 10% on goods from China, adding to the 10% tariffs Trump added to Chinese products in February. While President Joe Biden maintained tariffs on only certain products from China to protect specific industries, it appears Trump’s tariffs will cover all products.
Prime Minister Justin Trudeau of Canada called the tariffs “unjustified” and announced that Canada will put retaliatory tariffs on $20.8 billion worth of U.S. products made primarily in Republican-dominated states, including spirits, beer, wine, cosmetics, appliances, orange juice, peanut butter, clothing, footwear, and paper. A second set of tariffs in a few weeks will target about $90 billion worth of products, including cars and trucks, EVs, products made of steel and aluminum, fruits and vegetables, beef, pork, and dairy products.
Mexico’s president Claudia Sheinbaum did not provide details of what her country would do but told reporters today: “We have a plan B, C, D.” Chinese officials say that China, too, will impose retaliatory tariffs, singling out agricultural products and placing tariffs of 15% on corn and 10% on soybeans. It also says it will restrict exports to 15 U.S. companies.
The tariffs in place in the U.S. at the end of the nineteenth century were less important for the explosive growth of the economy in that era than the flood of foreign capital into private businesses: railroad, mining, cattle, department stores, and finance. By the end of the century, investing in America was such a busy trade that the London Stock Exchange had a separate section for American railroad transactions alone.
And the economic growth of the country did not help everyone equally. While industrialists like Cornelius Vanderbilt II could build 70-room summer homes in Newport, Rhode Island, the workers whose labor kept the mines and factories producing toiled fourteen to sixteen hours a day in dangerous conditions for little money, with no workmen’s compensation or disability insurance if they were injured. The era has become known as the Gilded Age, dominated by so-called robber barons.
Today, the stock market dropped dramatically upon news that Trump intended to go through with his tariffs. The Dow Jones Industrial Average dropped 650 points, down 1.48%. The S&P fell 1.76%, and the Nasdaq Composite, which focuses on technology stocks, fell 2.64%. Meanwhile, shares of European defense companies jumped to record highs as Europe moves to replace the U.S. support for Ukraine.
Also today, the Federal Reserve Bank of Atlanta forecast a dramatic contraction in the economy in the first quarter of 2025. Evaluating current data according to a mathematical model, it moved from an expected 2.9% growth in gross domestic product at the end of January to –2.8% today. That is just a prediction and there is still room for those numbers to turn around, but they might help to explain why Commerce Secretary Howard Lutnick is talkig about changing the way the U.S. calculates economic growth.
Notes:
https://www.nbcnews.com/news/us-news/usaid-official-leave-barriers-life-saving-programs-preventable-death-rcna194455
https://www.washingtonpost.com/national-security/2025/03/02/usaid-memo-official-leave
https://static01.nyt.com/newsgraphics/documenttools/2dbddd9a823b8824/168a9032-full.pdf
https://www.nytimes.com/2025/03/02/health/usaid-cuts-deaths-infections.html
https://www.propublica.org/article/trump-usaid-rubio-marocco-canceled-programs-gaza-syria-congo-hiv-ebola
https://apnews.com/article/trump-crypto-bitcoin-digital-assets-reserve-2f4246434a657f248cd85296f14382f9
https://coingape.com/peter-schiff-calls-for-congress-to-investigate-trumps-crypto-rug-pull/
https://home.treasury.gov/news/press-releases/sb0038
https://www.propublica.org/article/trump-funding-freeze-wildfire-season
https://abcnews.go.com/US/firefighters-gaining-upper-hand-after-175-fires-erupt/story?id=119395091
https://www.washingtonpost.com/weather/2025/03/02/carolinas-wildfires-evacuations
https://www.supplychaindive.com/news/ustr-biden-tariff-increase-wafers-polysilicon-tungsten/735240
https://www.reuters.com/world/americas/canadas-plan-retaliatory-tariffs-us-2025-03-04
https://www.wsj.com/livecoverage/trump-tariffs-canada-mexico-china-stock-market-today-03-04-2025/card/canada-s-trudeau-vows-retaliation-calls-tariffs-unjustified-Pxm4Zyfh8HjF96ZrNF7E
https://www.newsweek.com/mexico-says-it-has-plan-b-c-d-trump-tariff-threat-looms-2038880
https://www.cnbc.com/2025/03/04/china-rejects-additional-us-tariffs-vows-to-take-countermeasures.html
Mira Wilkins, “Foreign Investment in the U.S. Economy before 1914,” The Annals of the American Academy of Political and Social Science 516 (July 1991): 9–21.
https://www.cnn.com/2025/03/03/investing/us-stocks-tariffs-loom/index.html
https://www.atlantafed.org/-/media/documents/cqer/researchcq/gdpnow/realgdptrackingslides.pdf
https://www.reuters.com/world/us/us-commerce-secretary-wants-remove-government-spending-gdp-2025-03-03
https://www.theguardian.com/technology/2025/mar/02/bitcoin-price-falls-biggest-monthly-loss-since-june-2022
X: PeterSchiff/status/1896660831880007729
Heather Cox Richardson is an American historian. She is a professor of history at Boston College, where she teaches courses on the American Civil War, the Reconstruction Era, the American West, and the Plains Indians. She previously taught history at MIT and the University of Massachusetts Amherst.
Trump Plans To Make Ukraine A US Economic Colony, Exploiting Its Critical Minerals
Screenshot from BBC News
As seemed evident even at the time, the ambush of Ukraine president Volodymyr Zelensky in the Oval Office on Friday was a setup to provide justification for cutting off congressionally approved aid to Ukraine as it tries to fight off Russia’s invasion. That “impoundment” of funds Congress has determined should go to Ukraine is illegal under the terms of the 1974 Impoundment Control Act, and it is unconstitutional because the Constitution gives to Congress, not to the president, the power to set government spending and to make laws. The president’s job is to “take Care that the Laws be faithfully executed.”
It was for a similar impoundment of congressionally appropriated funds for Ukraine, holding them back until Zelensky agreed to tilt the 2020 election by smearing Joe Biden, that the House of Representatives impeached Trump in 2019. It is not hard to imagine that Trump chose to repeat that performance, in public this time, as a demonstration of his determination to act as he wishes regardless of laws and Constitution.
On Sunday, Nicholas Enrich, the acting assistant administrator for global health at the United States Agency for International Development (USAID) released a series of memos he and other senior career officials had written, recording in detail how the cuts to “lifesaving humanitarian assistance” at the agency will lead to “preventable death” and make the U.S. less safe. The cuts will “no doubt result in preventable death, destabilization, and threats to national security on a massive scale,” one memo read.
Enrich estimated that without USAID intervention, more than 16 million pregnant women and more than 11 million newborns would not get medical care; more than 14 million children would not get care for pneumonia and diarrhea (among the top causes of preventable deaths for children under the age of 5); 200,000 children would be paralyzed with polio; and 1 million children would not be treated for severe acute malnutrition. There would be an additional 12.5 million or more cases of malaria this year, meaning 71,000 to 166,000 deaths; a 28–32% increase in tuberculosis; as many as 775 million cases of avian flu; 2.3 million additional deaths a year in children who could not be vaccinated against diseases; additional cases of Ebola and mpox. The higher rates of illness will take a toll on economic development in developing countries, and both the diseases and the economic stagnation will spill over into the United States.
Although Secretary of State Marco Rubio promised to create a system for waivers to protect that lifesaving aid, the cuts appear random and the system for reversing them remains unworkable. The programs remain shuttered. Enrich blamed “political leadership at USAID, the Department of State, and DOGE, who have created and continue to create intentional and/or unintentional obstacles that have wholly prevented implementation.”
On Sunday, Enrich sent another memo to staff, thanking them for their work and telling them he had been placed on “administrative leave, effective immediately.”
Dangerous cuts are taking place in the United States, as well. On Friday, on Joe Rogan’s podcast, Musk called Social Security, the basis of the U.S. social safety net, a “Ponzi scheme.” Also on Friday, the Social Security Administration announced that it will consolidate the current ten regional offices it maintains into four and cut at least 7,000 jobs from an agency that is already at a 50-year staffing low. Erich Wagner of Government Executive reported that billionaire Elon Musk’s “Department of Government Efficiency” (DOGE) team had canceled the leases for 45 of the agency’s field offices and is urging employees to quit.
The acting commissioner of the agency, Leland Dudek, a mid-level staffer who got his post after sharing sensitive information with DOGE, blamed former president Joe Biden for the cuts. In contrast, Senator Ron Wyden (D-OR) pointed out that the system currently delivers 99.7% of retirement benefits accurately and on time. He warned that the administration is hollowing it out, and when it can no longer function, Republicans will say it needs the private sector to take it over. He called the cuts “a prelude to privatization.”
“The public is going to suffer terribly as a result of this,” a senior official told NPR. “Local field offices will close, hold times will increase, and people will be sicker, hungry, or die when checks don’t arrive or a disability hearing is delayed just one month too late.”
In South Carolina, North Carolina, and Georgia, more than 200 wildfires began to burn over the weekend as dry conditions and high winds drove the flames. Firefighters from the Forest Service helped to contain the fires, but they were understaffed even before Trump took office. Now, with the new cuts to the service, prevention measures are impossible and there aren’t enough people to fight fires effectively and safely. South Carolina governor Henry McMaster (R) declared a state of emergency on Sunday.
Josh Marshall at Talking Points Memo picked up something many of us missed, posting today that Trump’s February 11 “workforce optimization” executive order is a clear blueprint for the end goal of all the cuts to the federal government. The order says that departments and agencies must plan to cut all functions and employees who are not designated as essential during a government shutdown. As Marshall notes, this is basically a blueprint for a skeleton crew version of government.
But for all that the administration, led by DOGE, insists that the U.S. has no money for the government services that help ordinary people, it appears to think there is plenty of money to help wealthy supporters. In February, the cryptocurrency bitcoin experienced its biggest monthly drop since June 2022, falling by 17.5%. On Sunday, in a post on his social media site, Trump announced that the government will create a strategic stockpile of five cryptocurrencies, spending tax dollars to buy them.
Supporters say that such an investment could pay off in decades, when that currency has appreciated to become worth trillions of dollars. But, as Zachary B. Wolf of CNN notes, “for every bitcoin evangelist, there is an academic or banker from across the political spectrum who will point out that cryptocurrency investments might just as easily go up in smoke, which would be an unfortunate thing to happen to taxpayer dollars.”
The first three currencies Trump announced were not well known, and the announcement sent their prices soaring. Hours later, he added the names of the two biggest cryptocurrencies, including bitcoin. After the initial surges, by Monday prices for the currencies had fallen roughly back to where they had been before the announcement, making the announcement look like a pump-and-dump scheme. Economist Peter Schiff, a Trump supporter, called for a full congressional investigation, suggesting that someone other than Trump might have written the social media posts that set off the frenzy and wondering who was buying and selling in that short window of time.
Also on Sunday, the administration announced it would stop enforcing anti-money-laundering laws that were put in place over Trump’s veto in 2021 at the end of his first term and required shell companies to identify the people who own or control them. Referring to the law as a “Biden rule,” Trump called the announcement that he would not enforce it “Exciting News!” The Trump Organization frequently uses shell companies.
A world in which the government does not regulate business or address social welfare or infrastructure, claiming instead to promote economic development by funneling resources to wealthy business leaders, looks much like the late-nineteenth-century world that Trump praises. Trump insists that President William McKinley, who was president from 1897 to 1901, created the nation’s most prosperous era by imposing high tariffs on products from foreign countries.
Trump confirmed today that he will go forward with his own 25% tariffs on goods from Mexico and Canada and an additional 10% on goods from China, adding to the 10% tariffs Trump added to Chinese products in February. While President Joe Biden maintained tariffs on only certain products from China to protect specific industries, it appears Trump’s tariffs will cover all products.
Prime Minister Justin Trudeau of Canada called the tariffs “unjustified” and announced that Canada will put retaliatory tariffs on $20.8 billion worth of U.S. products made primarily in Republican-dominated states, including spirits, beer, wine, cosmetics, appliances, orange juice, peanut butter, clothing, footwear, and paper. A second set of tariffs in a few weeks will target about $90 billion worth of products, including cars and trucks, EVs, products made of steel and aluminum, fruits and vegetables, beef, pork, and dairy products.
Mexico’s president Claudia Sheinbaum did not provide details of what her country would do but told reporters today: “We have a plan B, C, D.” Chinese officials say that China, too, will impose retaliatory tariffs, singling out agricultural products and placing tariffs of 15% on corn and 10% on soybeans. It also says it will restrict exports to 15 U.S. companies.
The tariffs in place in the U.S. at the end of the nineteenth century were less important for the explosive growth of the economy in that era than the flood of foreign capital into private businesses: railroad, mining, cattle, department stores, and finance. By the end of the century, investing in America was such a busy trade that the London Stock Exchange had a separate section for American railroad transactions alone.
And the economic growth of the country did not help everyone equally. While industrialists like Cornelius Vanderbilt II could build 70-room summer homes in Newport, Rhode Island, the workers whose labor kept the mines and factories producing toiled fourteen to sixteen hours a day in dangerous conditions for little money, with no workmen’s compensation or disability insurance if they were injured. The era has become known as the Gilded Age, dominated by so-called robber barons.
Today, the stock market dropped dramatically upon news that Trump intended to go through with his tariffs. The Dow Jones Industrial Average dropped 650 points, down 1.48%. The S&P fell 1.76%, and the Nasdaq Composite, which focuses on technology stocks, fell 2.64%. Meanwhile, shares of European defense companies jumped to record highs as Europe moves to replace the U.S. support for Ukraine.
Also today, the Federal Reserve Bank of Atlanta forecast a dramatic contraction in the economy in the first quarter of 2025. Evaluating current data according to a mathematical model, it moved from an expected 2.9% growth in gross domestic product at the end of January to –2.8% today. That is just a prediction and there is still room for those numbers to turn around, but they might help to explain why Commerce Secretary Howard Lutnick is talkig about changing the way the U.S. calculates economic growth.
Notes:
https://www.nbcnews.com/news/us-news/usaid-official-leave-barriers-life-saving-programs-preventable-death-rcna194455
https://www.washingtonpost.com/national-security/2025/03/02/usaid-memo-official-leave
https://static01.nyt.com/newsgraphics/documenttools/2dbddd9a823b8824/168a9032-full.pdf
https://www.nytimes.com/2025/03/02/health/usaid-cuts-deaths-infections.html
https://www.propublica.org/article/trump-usaid-rubio-marocco-canceled-programs-gaza-syria-congo-hiv-ebola
https://apnews.com/article/trump-crypto-bitcoin-digital-assets-reserve-2f4246434a657f248cd85296f14382f9
https://coingape.com/peter-schiff-calls-for-congress-to-investigate-trumps-crypto-rug-pull/
https://home.treasury.gov/news/press-releases/sb0038
https://www.propublica.org/article/trump-funding-freeze-wildfire-season
https://abcnews.go.com/US/firefighters-gaining-upper-hand-after-175-fires-erupt/story?id=119395091
https://www.washingtonpost.com/weather/2025/03/02/carolinas-wildfires-evacuations
https://www.supplychaindive.com/news/ustr-biden-tariff-increase-wafers-polysilicon-tungsten/735240
https://www.reuters.com/world/americas/canadas-plan-retaliatory-tariffs-us-2025-03-04
https://www.wsj.com/livecoverage/trump-tariffs-canada-mexico-china-stock-market-today-03-04-2025/card/canada-s-trudeau-vows-retaliation-calls-tariffs-unjustified-Pxm4Zyfh8HjF96ZrNF7E
https://www.newsweek.com/mexico-says-it-has-plan-b-c-d-trump-tariff-threat-looms-2038880
https://www.cnbc.com/2025/03/04/china-rejects-additional-us-tariffs-vows-to-take-countermeasures.html
Mira Wilkins, “Foreign Investment in the U.S. Economy before 1914,” The Annals of the American Academy of Political and Social Science 516 (July 1991): 9–21.
https://www.cnn.com/2025/03/03/investing/us-stocks-tariffs-loom/index.html
https://www.atlantafed.org/-/media/documents/cqer/researchcq/gdpnow/realgdptrackingslides.pdf
https://www.reuters.com/world/us/us-commerce-secretary-wants-remove-government-spending-gdp-2025-03-03
https://www.theguardian.com/technology/2025/mar/02/bitcoin-price-falls-biggest-monthly-loss-since-june-2022
X: PeterSchiff/status/1896660831880007729
Heather Cox Richardson is an American historian. She is a professor of history at Boston College, where she teaches courses on the American Civil War, the Reconstruction Era, the American West, and the Plains Indians. She previously taught history at MIT and the University of Massachusetts Amherst.
Trump Plans To Make Ukraine A US Economic Colony, Exploiting Its Critical Minerals
Donald Trump’s fight with Ukrainian leader Volodymyr Zelensky in the White House reflected how the US treats Ukraine as a colony. Trump demands control of the country’s rare earths and critical minerals, to weaken China, re-industrialize, and build tech products. Trump wants to be paid $350 billion, roughly twice Ukraine’s GDP.
By Ben Norton
March 2, 2025
Source: Geopolitical Economy Report
Screenshot from The Whitehouse
The fight that broke out in the White House between US President Donald Trump and Ukraine’s leader, Volodymyr Zelensky, on February 28 was a stark symbol of the colonial relationship between the two countries.
“You’re in no position to dictate”, Trump yelled at Zelensky in the Oval Office. “You don’t have the cards right now. With us, you start having cards”.
The Trump administration has sought to impose an exploitative deal that will “make Ukraine a US economic colony”, in the words of the conservative British newspaper The Telegraph.
Trump is demanding control over Ukraine’s minerals, and plans to use revenue from the sale of its natural resources to pay the United States hundreds of billions of dollars, equivalent to roughly twice Ukraine’s GDP.
The US government believes that Ukraine could have trillions of dollars worth of rare earth elements and other critical minerals, which are needed for advanced technologies.
Trump wants to re-industrialize the United States, and he is offering corporations access to Ukraine’s resources to make their products.
This is part of Washington’s attempt to remove China from the supply chain for critical minerals, which has been a top priority of the Pentagon and the US House select committee on the Communist Party of China.
The Telegraph reported that Ukraine’s resources could be worth $15 trillion, writing that its “minerals offer a tantalising promise: the ability for the US to break its dependence on Chinese supplies of critical minerals that go into everything from wind turbines to iPhones and stealth fighter jets”.
Trump has stated that he wants to “un-unite” Russia and China, and his efforts to end the war in Ukraine also aim at splitting Moscow from Beijing.
Trump demands Ukraine pay the US twice its GDP
The US government pushed Ukraine into war with Russia, after expanding NATO up to Russia’s borders and backing a coup d’etat that overthrow Ukraine’s democratically elected, geopolitically neutral government in 2014. This set off a violent conflict that escalated into a massive proxy war between NATO and Russia in 2022.
Former US Defense Secretary Lloyd Austin stated clearly that Washington was using Ukraine to “weaken” Russia.
At different times, Trump has falsely claimed that the United States gave Ukraine $350 billion or $500 billion in aid. This is not true.
Independent analysts have calculated that the United States spent $119.7 billion on Ukraine-related “aid” since 2022.
According to the US Department of Defense, $182.8 billion was appropriated for military operations related to Ukraine from the end of 2021 to the end of 2024. The BBC noted that this figure includes military training in Europe and US weapons supplies.
Much of this “aid” consisted of US government contracts with private, for-profit weapons corporations, which produced the arms and ammunition that were sent to Ukraine.
In other words, the US military-industrial complex made a killing off of Ukraine “aid”.
Regardless, Trump is demanding that Ukraine pay the United States at least $350 billion, which is nearly two times the size of the country’s entire economy.
Ukraine’s GDP in 2024 was reported by the IMF to be $184.1 billion — although this figure is questionable, given the war.
The US wants Ukraine’s critical minerals
Republican Senator Lindsey Graham, a close Trump ally, has repeatedly said that the United States wants to exploit Ukraine’s critical minerals.
In a June 2024 interview on CBS, Graham stated:
What did Trump do to get the weapons flowing [to Ukraine during his first term]? He created a loan system.
They’re sitting on $10 to $12 trillion of critical minerals in Ukraine. They could be the richest country in all of Europe. I don’t want to give that money and those assets to Putin, to share with China.
If we help Ukraine now, they can become the best business partner we ever dreamed of. That $10 to $12 trillion of critical mineral assets could be used by Ukraine and the West, not given to Putin and China. This is a very big deal, how Ukraine ends.
In an interview on Fox News, just two weeks after Trump won the presidential election in November 2024, Graham argued that “the war is about money”, and he promised that Trump would impose a deal to “enrich ourselves with rare earth minerals”:
We’re 1000 days into this war. Ukraine is still standing.
This war is about money. People don’t talk much about it. But you know the richest country in all of Europe, for rare earth minerals, is Ukraine: $2 to $7 trillion worth of minerals that are rare earth minerals, very relevant to the 21st century.
Ukraine is ready to do a deal with us, not the Russians. So it’s in our interest to make sure that Russia doesn’t take over the place.
It’s the breadbasket of, really, the developing world. 50% of all the food going to Africa comes out of Ukraine.
We can make money and have an economic relationship with Ukraine, to be very beneficial to us, with peace.
So Donald Trump is going to do a deal to get our money back, to enrich ourselves with rare earth minerals.
It is not known if actually Ukraine has these large reserves of rare earths. This claim has been called into question.
Nevertheless, the Trump administration believes there could be trillions of dollars worth of untapped minerals, and it wants to carry out exploration operations.
In the disastrous White House press conference with Zelensky on February 28, Trump was asked if his plan would provide security for Ukraine, and he replied: “We have security in a different form. We’ll have workers there, digging, digging, digging, taking the raw earth [sic], so that we can create a lot of great product in this country”.
Trump also revealed that the United States plans to use Ukraine’s critical minerals to create “weaponry that we’re going to use in many locations”.
“This is an incredible agreement for Ukraine, because we have a big investment in their country now”, he said in the meeting with Zelensky. “And what they have, very few people have. And we’re able to really go forward with very, very high-tech things, and many other things, including weaponry — weaponry that we’re going to use in many locations, but that we need for our country”.
Throughout the press conference, Trump repeatedly referred to rare earth elements as “raw earth”.
A journalist asked Trump how exactly Ukraine will benefit from his one-sided deal. Trump responded by enthusiastically explaining how it will help the United States. The following is a partial transcript:
REPORTER: How does this provide long-term security for Ukraine?
DONALD TRUMP: Well, we don’t know exactly how much, because we’re going to be putting some money in a fund, that we’re going to get from the raw earth, that we’re going to be taking, and sharing, in terms of revenue. So it’s going to be a lot of money will be made from the sale, and from the use of raw earth.
And as you know, our country doesn’t have much raw earth. We have a lot of oil, and gas, but we don’t have a lot of the raw earth. And what we do have is protected by the environmentalists. But that could be unprotected. But still, it’s not very much.
They [in Ukraine] have among the best in the world, in terms of raw earth. So we’re going to be using that, taking it, using it for all of the things we do, including AI, and including weapons, and the military. And it’s really going to very much satisfy our needs.
So it’s something that just worked out really well. We have a lot of oil, and we have a lot of gas. We have a lot, but we don’t have raw earth.
So this has just about every component of the raw earth that we need for computers, for all of the things we do.
Trump’s remarks criticizing US environmentalists over their opposition to the mining of rare earths was an implicit acknowledgment that the process is toxic.
In a peer-reviewed article published in 2024, scientific experts warned that the “long-term, large-scale mining and utilization of rare earths has caused serious environmental pollution and constitutes a global health issue, which has raised concerns regarding the safety of human health”.
The US government has apparently made the assessment that it would be better to pollute Ukraine by exploiting rare earths there, where Americans won’t suffer from the environmental impact.
Trump boasts of arming Ukraine
Trump’s discourse on Ukraine has been utterly contradictory. He has alternated between blaming Democratic Presidents Joe Biden and Barack Obama for the war, which simultaneously boasting of supplying Kiev with weapons that Obama had initially refused to send.
Trump has repeatedly demanded credit for, during his first term, arming Ukraine with Javelin anti-tank missile systems, which were used to fight against Russian-backed forces in the eastern Donbas region.
In a press conference at the White House on February 25, a journalist asked Trump about the minerals deal. The following is a transcript of his response:
REPORTER: What does Ukraine get in return, Mr. President?
DONALD TRUMP: Uhh, $350 billion, and lots of equipment, and military equipment, and the right to fight on, and, originally, the right to fight.
Look, Ukraine, I will say, they’re very brave, and they’re good soldiers, but without the United States, and its money, and its military equipment, this war would have been over in a very short period of time.
In fact, I was the one that gave the Javelins. You remember the famous Javelins? That was me. That wasn’t Obama; it wasn’t Biden; it wasn’t anybody else; it was me. And they wiped out a lot of tanks with those Javelins.
And the expression was that Obama gave sheets, and I gave the Javelins. That was a big deal, at the time. It wiped out — that was the beginning, when people said, “Wow, that’s something”.
Well, that was American equipment. Without American equipment, this war would have been over very quickly. And American money, too. I mean, a lot of money.
During his fight with Zelensky on February 28, the US president made similar comments.
Trump blamed the Ukraine war on Biden, whom he called “stupid”. At the same time, however, although he denied responsibility for the war, Trump could not help but brag about sending weapons to Ukraine during his first term, which exacerbated the war that was already ongoing at the time, before it massively escalated in 2022.
“We gave you military equipment, and your men are brave, but they had to use our military equipment”, Trump yelled at Zelensky. “If you didn’t have our military equipment, this war would have been over in two weeks”.
Trump continued:
That wasn’t with me; that was with a guy named Biden, who was not a smart person. That was with Obama, who gave you sheets, and I gave you Javelins.
I gave you the Javelins, to take out all those [Russian] tanks. Obama gave you sheets. In fact, the statement is, Obama gave sheets, and Trump gave Javelins.
You gotta be more thankful, because, let me tell you, you don’t have the cards. With us, you have the cards. But without us, you don’t have any cards.
USA will control Ukraine’s reconstruction fund
The text of the agreement that Trump has sought to impose on Ukraine has not been publicly released.
The conservative British newspaper The Telegraph obtained the early draft of the deal, which the media outlet said would “amount to the US economic colonisation of Ukraine, in legal perpetuity”.
This draft stated that the United States would get control over Ukraine’s “mineral resources, oil and gas resources, ports, other infrastructure (as agreed)”. It is based not on Ukrainian law, but rather New York law.
The Telegraph wrote:
The US will take 50pc of recurring revenues received by Ukraine from extraction of resources, and 50pc of the financial value of “all new licences issued to third parties” for the future monetisation of resources. There will be “a lien on such revenues” in favour of the US. “That clause means ‘pay us first, and then feed your children’,” said one source close to the negotiations.
It states that “for all future licences, the US will have a right of first refusal for the purchase of exportable minerals”. Washington will have sovereign immunity and acquire near total control over most of Ukraine’s commodity and resource economy. The fund “shall have the exclusive right to establish the method, selection criteria, terms, and conditions” of all future licences and projects. And so forth, in this vein. It seems to have been written by private lawyers, not the US departments of state or commerce.
This leaked draft caused international outrage, given how explicitly colonial it was.
To try to save face, US Treasury Secretary Scott Bessent published an op-ed in the Financial Times on February 22 explaining the Trump administration’s plans for Ukraine.
Bessent is a billionaire hedge fund manager who previously worked for the billionaire oligarch George Soros, who is ironically a bugbear of Western conservatives.
Bessent traveled to Ukraine in February to negotiate the agreement with Zelensky.
In his FT article, Bessent explained that, under the deal, the United States will oversee a joint fund with the Ukrainian government. He wrote:
The terms of our partnership propose that revenue received by the government of Ukraine from natural resources, infrastructure and other assets is allocated to a fund focused on the long-term reconstruction and development of Ukraine where the US will have economic and governance rights in those future investments.
The Treasury secretary strongly implied that US corporations will benefit from these investments, writing, “When I was in Kyiv, I met with many American companies that have been on the ground in Ukraine for years”.
Bessent stressed that the “terms of this partnership will mobilise American talent, capital, and high standards”.
In a separate, accompanying article, the Financial Times noted that, in his op-ed, Bessent had conveniently left out how much of Ukraine’s export revenue will be paid to the US.
A draft of the deal obtained by the FT stated that Ukraine’s fund will be set up “with the encumbrance (legal claim) of such revenues in favour of the United States”. The text made it clear that Washington will be given power over reconstruction projects in Ukraine.
This framework is reminiscent of the colonial arrangement that the United States imposed on Iraq, after invading the country in an illegal war of aggression in 2003 and overthrowing its government. The US central bank, the Federal Reserve, administers the money that Iraq receives from selling its crude oil.
Ukraine’s Prime Minister Denys Shmyhal stated that his country had agreed to Trump’s mineral deal, two days before Zelensky’s meeting at the White House. It is unclear if the fight changed the status of the agreement.
The other major revelation in Bessent’s FT article was that Zelensky himself had visited Trump Tower in September, just a few weeks before the presidential election. There, in Bessent’s words, “Zelenskyy proposed giving the US a stake in Ukraine’s rare earths elements and critical minerals”.
This was the biggest irony of all: Zelensky had long showed himself to be an obedient vassal of the United States, and he offered Trump some of Ukraine’s natural resources as an incentive to continue arms shipments.
Trump apparently loved the idea, but he wanted total control, not just a little. Now, Trump is demanding to be paid roughly twice the GDP of the country.
The colonial deal that the Trump administration is imposing on Ukraine recalls an infamous quote from the late US imperial strategist Henry Kissinger, who said in the context of Washington’s puppet regime in South Vietnam, “It may be dangerous to be America’s enemy, but to be America’s friend is fatal”.
The people of Ukraine have learned this lesson the hard way.
No comments:
Post a Comment