Action by the Pacific Patriots Network in Burns, Oregon, demonstrates the changing nature of the US. (Jim Urquhart / Reuters)
Action by the Pacific Patriots Network in Burns, Oregon, demonstrates the changing nature of the US. (Jim Urquhart / Reuters)

In America, the era of insurgency and turbulence has just begun



When Timothy McVeigh detonated a truck bomb that killed 168 Americans in Oklahoma City in 1995, he claimed to be avenging white extremists killed by federal agents at Ruby Ridge and members of a religious cult who died during a government raid on their compound at Waco, Texas.

McVeigh hoped he would spur like-minded “patriots” to rise up and overthrow what he called a tyrannical federal government. No such rebellion materialised in 1995, but “patriots” who share his world view may have reason to believe conditions today are conducive to fulfilling their fantasy.

The election of America’s first black president in the same year that the financial collapse plunged millions more into poverty sparked an ammunition shortage in the nation’s gun stores. The same happened after Barack Obama’s reelection.

Hundreds of new white male “patriot” groups have emerged, their members brandishing semi-automatic rifles on the streets – outside mosques to intimidate Muslim worshippers, patrolling the border areas where migrants cross from Mexico, on the streets of Ferguson, where black protesters challenge racist policing, and in taking control of a state wildlife sanctuary in Oregon to protest against government land-use policy.

No modern state can survive without maintaining a monopoly of force within its territory. Legally permitting citizens to brandish weapons on the streets independent of government authority not only demonstrates the crumbling of state power, it raises the risk of bloody confrontations – and even civil war.

Last week’s debacle at the Malheur National Wildlife Refuge in Oregon, which had been occupied by a militia group, may have given the movement a new martyr, LaVoy Finicum, killed in a confrontation with the FBI.

Will there be new McVeighs seeking to avenge Finicum?

Perhaps, but the national political scene today is very different from 1995. Back then, Republicans recoiled from McVeigh and even dropped opposition to key gun-control laws. The party’s 1996 presidential candidate was Bob Dole, a Republican so moderate by today’s standards that his policy positions would be closer to those of Hillary Clinton.

A number of the contenders for this year’s Republican nomination actually echo McVeigh’s anti-government rhetoric, even if they called on the Oregon ranchers to stand down. Ted Cruz, for example, has told supporters that the constitution allows citizens to bear arms “as the ultimate check against governmental tyranny”.

Donald Trump’s campaign offers daily affirmation of the fact that a white nationalist rebellion has a well-established beachhead in national politics.

Mr Cruz and Mr Trump are channelling the rage and despair of white working class Americans whose real incomes have steadily declined since the onset of the Reagan era. Even under Bill Clinton and Mr Obama, healthy economic growth has masked growing social inequality and decline of living standards for the majority. The symptoms can be shocking: a Princeton University study published last November chronicled an almost 50 per cent spike during the first decade of this century in suicides among middle-aged white men without college education – a morbid statistic many analysts attributed to mounting economic despair.

That economic despair has been exploited by political entrepreneurs cultivating a burgeoning white working-class rage, with narratives that attribute their plight to the country’s first black president and his “socialist tyranny”.

Mr Trump’s insurgent campaign exemplifies this phenomenon, much to the consternation of the Republican Party establishment.

They want Jeb Bush or Marco Rubio to run against Hillary Clinton (presuming she sees off the insurgent challenge of socialist Bernie Sanders). But the Republican base, which starts the nominating process on Monday, looks more likely to pick Mr Trump or Ted Cruz.

That would probably mean another Democratic president – and a further escalation of the white nationalist rage at an America in which white people will soon be a minority.

The idea of a bombastic billionaire as the answer to the woes of the white working class may seem a little far fetched, but Mr Trump is a symptom of the fact that Americans – whether it’s black people under the gun from racist cops, progressive voters seeking a decent healthcare system and a good standard of living or white working class nationalists pining for a mythologised era of past greatness – are no longer looking to the traditional political system for redress.

Regardless of who wins in Iowa and in November, America can expect years of turbulence ahead.

Tony Karon teaches in the graduate programme at the New School in New York

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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.”

Company profile

Date started: 2015

Founder: John Tsioris and Ioanna Angelidaki

Based: Dubai

Sector: Online grocery delivery

Staff: 200

Funding: Undisclosed, but investors include the Jabbar Internet Group and Venture Friends

'Midnights'
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