The President's Daily Brief - March 20th, 2024: Palestinian Rifts, Cuban Crisis, & Hong Kong’s Shift

Episode Date: March 20, 2024

In this episode of The President's Daily Brief: We examine the shifting dynamics in the Middle East as the Palestinian Authority points the finger at Hamas for the disaster unfolding in Gaza. Another crisis unfolds in the Caribbean with Cuba on the precipice of economic collapse, sparking unprecedented protests in the wake of severe blackouts and food scarcity. Turning to Asia, we discuss Hong Kong's latest national security law and its implications for the region's waning autonomy under China's expanding influence. In the Back of the Brief, the race to acquire TikTok heats up on Capitol Hill, with investors from around the globe, including Saudi Arabia, showing keen interest as legislation continues its journey through Congress. To listen to the show ad-free, become a premium member of The President’s Daily Brief by visiting PDBPremium.com. Please remember to subscribe if you enjoyed this episode of The President's Daily Brief. Email: [e-mail]. Learn more about your ad choices. Visit megaphone.fm/adchoices

Some follow the noise. Bloomberg follows the money. Because behind every headline is a bottom line. Whether it's the funds fueling AI or crypto's trillion dollar swings, there's a money side to every story. And when you see the money side, you understand what others miss. Get the money side of the story. Subscribe now at Bloomberg.com.

This podcast is sponsored by Blackout Coffee. It's the easiest way to get your morning started right with the fresh, delicious taste of American-made Blackout Coffee. It's family-owned, premium coffee, fresh-roasted, and shipped out within 48 hours of roasting. That's incredible. Go to blackout coffee.com promo code PDB for 20% off your first purchase. It's Wednesday, 20 March. Welcome to the President's Daily Brief. I'm Mike Baker.

Your eyes and ears on the world stage. Let's get briefed. We're going to start today with news out of the West Bank, where the Palestinian Authority is breaking ranks with its counterparts in Gaza in a very public way, laying the blame for the current crisis squarely on the shoulders of the Iranian-backed Hamas. Later in the program, we'll turn to the Caribbean, where Cuba stands on the brink of disaster with rare street protests amidst prolonged blackouts and food shortages. Plus, we'll head to the Far East, where Hong Kong's legislature has passed a new national

security law, eroding the region's autonomy and bringing it closer to China, not that there was actually much autonomy left in Hong Kong for the CCP to finish eroding. And in today's back of the brief, as TikTok legislation winds its way through Congress, investors are lining up to potentially buy the video-sharing app, including some investors from Saudi Arabia. But first, today's PDB spotlight. While most of our attention for the past several months has rightly been on the war in Gaza, the horrors of Hamas's 7 October attacks, the IDF's efforts to destroy Hamas, and the resulting humanitarian crisis there, today I want to focus on some very interesting developments in the West Bank. Now, as you already know,

the West Bank is governed by the Palestinian Authority under President Mahmoud Abbas. The enclave split from Gaza, politically speaking, in 2007, when Hamas formed its own government there after defeating and expelling the rival Fatah Party, which continues to dominate the Palestinian Authority, referred to as the PA, to this day. What you might not know is that the PA saw a major shakeup earlier this year, with the Prime Minister. and its entire government submitting their resignations just last month in February. The move was, in part, due to pressure from the United States to reform and improve the PA's governance in the West Bank, in the hopes that it could also govern Gaza when the war comes

to an end there. Well, PA President Mahmoud Abbas appointed a new prime minister just late last week, and it's a longtime ally named Mohamed Mustafa. Mustafa. Mustafa is seen by many as a pragmatist. He's a trained economist who was educated in the West, holding a doctorate in economics from George Washington University. He's also a wealthy investor who held senior positions at the World Bank in Washington, D.C. for 15 years.

Now the appointment of a money man like Mustafa does make sense. It's believed that he's in a position to attract international investors to help rebuild Gaza, which as we know is basically currently in ruins. However, his appointment is not sitting well with Hamas, which publicly criticized the appointment, and this is rich, as undemocratic. Now, the terror group instead called for a prime minister chosen by national consensus and unity. Hamas has ruled Gaza for almost 20 years through coercion, bribery, and extortion. Not to mention, the billions of dollars of the terror group is stolen that was intended for the people of Gaza. For the Iranian proxy to refer to anything as undemocratic is pathetically laughable.

Well, Fatah fired back at Hamas in a major way this week, illustrating the deep and perhaps deepening division between the two groups. For the first time, the West Bank leadership directly blamed Hamas for the current situation in Gaza. Fatah wrote of the criticism, quote, did Hamas consult the Palestinian leadership or any Palestinian National Party when it made its decision to carry out the adventure of last October 7, which led to a catastrophe more horrific and crueler than the Nakpa of 1948? And quote, it's important to pay attention to the language that the Palestinian West Bank leadership used there.

The Nakpa, that's the word Palestinians used to refer to the mass exodus of Arabs. from Palestine in 1948. That's about a strong rebuke of Hamas's actions as you're going to get. Fatah went on to criticize Hamas leaders for living lavish lifestyles. They said, quote, it seems that the comfortable life that this Hamas leadership lives in seven-star hotels has blinded them from what is right. Finally, they blasted Hamas for their ties to Iran, saying the terror group would rather, quote, appoint a prime minister from Iran. or let Tehran appoint a prime minister for the Palestinians." Now, all those statements will likely be well received by the U.S. State Department,

which still hopes that the PA will take an active role in governing Gaza in the near future. However, that is massively complex, in part because the Palestinian authority, well, the PA is not well-liked or popular within Gaza. In addition, it might also be a hard sell for Israeli Prime Minister Netanyahu, who remains opposed to any return of the PA to Gaza. All right, coming up after the break, Cuba faces unprecedented challenges with massive blackouts and critical food shortages, igniting rare protests in the streets. Then, we'll take a look at a significant shift in Hong Kong as its legislature enacts a new national security law designed to remove any last removal. remaining embers of autonomy on the island. I'll be right back. Welcome back.

I want to turn our attention to Cuba, a country that often gets overlooked in the current geopolitical discussion. But Cuba should be on your radar screen, as the nation is facing an economic crisis that could collapse the current communist government. Hundreds of Cubans took to the streets of multiple cities on Sunday to protest hours-long power cuts and increasing food shortages. Cuba is currently plagued by a crumbling economy that's caused massive inflation.

To illustrate just how bad the situation has become, many state salaries are now worth less than the cost of a carton of eggs, and that's according to a CNN report. Cuba's financial crisis has also caused major fuel shortages, which forced the ruling government to hike the price of fuel by more than 500 percent earlier this month. Due to the scarcity of fuel, the government has also... instituted regular power cuts throughout the country. And to make matters worse, the population is also facing a shortage of medicine, and that has prompted Cubans to migrate to the U.S. in record numbers.

In a rare display for a government that does not typically allow organized dissent, Cuban president Miguel Diaz-Canel acknowledged the protests in a formal statement on Monday this week. Diaz-Canel said the government wants to, quote, attend to the complaints of our people, listen, dialogue, and explain the many efforts that are being carried out to improve the situation." The statement seems to be a tacit acknowledgement, at least, of the precarious position that the communist regime is in, as they attempt to navigate the current economic crisis. Facing shrinking domestic production, strict U.S. sanctions, and a tourism industry that never really recovered from the COVID-19 pandemic, Cuba's economic outlook is

arguably the worst in the 30 years since the Soviet Union collapsed, according to a Bloomberg analysis. The ruling regime, for their part, are putting most of the blame on the long-standing U.S. trade embargo. Like any good communist regime, also, President Diaz Canal is looking for a scapegoat, recently launching an investigation into his former economy minister for alleged corruption. U.S. leaders are cautiously observing the current unrest in Cuba, and called on the government to ease tensions by listening to the concerns of the demonstrators.

American officials are eager to ensure that the discord doesn't deteriorate into widespread chaos, much like what we recently saw in Haiti. The U.S. Embassy in Havana said Monday, quote, We urge the Cuban government to respect the human rights of the protesters and address the legitimate needs of the Cuban people, end quote. Well, that should do it. Turning our focus to the Far East. Officials in Hong Kong are cracking down on civil liberties such as they've been and a sign that the financial hub is trying to more closely align themselves with CCP leaders in mainland China.

Hong Kong's legislature, all basically handpicked by the CCP, unanimously passed a new national security bill on Tuesday that critics say significantly erodes freedoms and could be used to further stifle political dissent. Now, the law in question, known as Article 23, introduces 39 new national security crimes, covering areas including treason, sabotage, espionage, external interference, and unlawful handling of state secrets. The vague language in the new law is what has critics particularly concerned. The bill contains broad definitions of what constitutes a crime with grave penalties for those who find themselves on the wrong side of the law. city leader John Lee, again handpicked by the CCP, hailed the legislation as a, quote, historic moment for Hong Kong, claiming that it plugged security loopholes and will restore stability within the city. Notably, he said Hong Kong leaders, quote, did not let the central government

down. Well, that's nice with their vote of reference to Xi Jinping's ruling CCP and their influence in the city. It's important to note that the new provisions expand a national security law imposed on Hong Kong by CCP leaders in 2020, following the historic pro-democracy protests that swept through the city in 2019. That law was immediately used to jail pro-democracy leaders and force activist groups and media outlets to disband. We should also note that Hong Kong's legislative assembly once had a strong pro-democracy contingent. However, they were run out of officer otherwise arrested under the national security law in the years following the 2019 protests. The local election laws were formally overhauled in 2021, allowing only Chinese patriots to hold office

in the city. And it won't surprise you to learn that the CCP, well, they get to decide who is patriotic enough to stand for election in Hong Kong. With this legislative dominance, lawmakers loyal to the CCP were able to fast-track the new national security measures into law. International observers are already voicing their concern that the bill's draconian language will have a chilling effect on the population. Ah, you think? Officials with the U.S. State Department warned that the new law, quote, has the potential to accelerate the closing of Hong Kong's once-open society

and could be used to, quote, eliminate dissent through the fear of arrest and detention. Chinese leaders, unsurprisingly, brushed off U.S. criticism as political manipulation and interference. Rather, ironically, CCP leaders and officials in Hong Kong claim that the law will actually help safeguard the interests of overseas investors, as well as the values of democracy and freedom in Hong Kong. Now, not to put too fine a point on it, but the CCP since 2019 has effectively stamped out the last vestiges of democracy and freedom in Hong Kong. There's nothing left to safeguard on that front.

Coming up, as legislation targeting TikTok navigates the halls of Congress, a line of investors is forming with eyes on acquiring the popular video sharing platform, and among the interested parties are several from Saudi Arabia. I'll have more on that in today's back of the brief. In today's back of the brief, the White House is urging the U.S.

Senate to move swiftly on the bill that would force Chinese technology company bite dance to sell TikTok or face a ban. The bill passed in the House with overwhelming bipartisan support just last week. Administration officials are scheduled to hold closed-door briefings with senators on the Commerce and Intelligence Committees in the hopes of shoring up support. The briefing is expected to include the FBI, the Office of the Director of National Intelligence, and Justice Department, and we'll cover the national security threats posed by the Chinese own short video app. As we've previously reported, if the bill clears the Senate and is signed by the president, Beijing based by dance will have months to divest from TikTok or companies like Apple and Google

will no longer be allowed to offer it on their app stores. So it raises the question, who would buy the app in the event that the Chinese company chooses to sell it? According to reports, one of the potential buyers is Liberty Strategic Capital. That's a private equity firm run by former Treasury Secretary under President Trump, Steve Mnuchin. Well, now that might be a bit of a problem. Multiple outlets are reporting that Mnuchin's investors include the public investment fund. That's the state-owned investment fund of Saudi Arabia. And one of the Senate's top Democrats, Senator Ron Wyden of Oregon,

is already sounding the alarm on the potential sale. Wyden said on Tuesday, quote, I'm absolutely concerned about the Chinese government's access to Americans' personal data. But every concern that has been voiced about Chinese influence is equally valid, he says, when it comes to a Saudi government that murdered a Washington Post journalist after planting spyware on his wife's phone, end quote. Now, Senator Wyden, of course, was alluding to the murder of Jamal Khashoggi, who was believed by the CIA,

to have been assassinated at the order of Saudi Crown Prince Mohammed bin Salman back in 2018. And finally, in a demonstration of just how quickly news can develop or change, during yesterday's afternoon bulletin, we covered how on Monday the U.S. Supreme Court moved to indefinitely block the state of Texas from implementing a controversial new state law that would allow state and local Texas law enforcement to detain and deport individuals illegally entering or re-entering the U.S. The court essentially put the Texas law on ice on Monday in order to give themselves more time to ponder the issue. Well, no sooner had we released that episode yesterday than some two hours later, the Supreme Court issued word that they have decided

not to interfere, basically reversing the position and now giving Texas the ability to move forward with the new law, giving local and state law enforcement powers that were previously reserved for federal authorities. The Supreme Court essentially kicked the matter down to the lower courts where it will face challenges from the Biden administration, the DOJ, and activist groups. And that, my friends, is the president's daily brief for Wednesday, 20 March. If you have any questions or comments, please reach out to me at pdb at thefirsttv.com. I'm Mike Baker. I'll be back later today with the PDB afternoon bulletin. Until then, Stay informed. Stay safe. Stay cool.

Ryan Reynolds here for MintMobil. I don't know if you knew this, but anyone can get the same premium wireless for $15 a month plan that I've been enjoying. It's not just for celebrities. So do like I did and have one of your assistance assistants to switch you to MintMobile today. I'm told it's super easy to do at mintmobile.com slash switch. Up front payment of $45 for three month plan equivalent to $15 per month required. Intro rate first three months only, then full price plan options available. Taxes and fees extra. See full terms at mintmobile.com.