By Scott Stewart

This week's Stratfor's Geopolitical Intelligence Report provided a high-level assessment of the economic forces that affect how the Mexican people and the Mexican government view the flow of narcotics through that country. Certainly at that macro level, there is a lot of money flowing into Mexico and a lot of people, from bankers and businessmen to political parties and politicians, are benefiting from the massive influx of cash. The lure of this lucre shapes how many Mexicans (particularly many of the Mexican elite) view narcotics trafficking. It is, frankly, a good time to be a banker, a real estate developer or a Rolex dealer in Mexico.

By George Friedman

STRATFOR argued March 13, 2008, that Mexico was nearing the status of a failed state. A failed state is one in which the central government has lost control over significant areas of the country and the state is unable to function. In revisiting this issue, it seems to us that the Mexican government has lost control of the northern tier of Mexico to drug-smuggling organizations, which have significantly greater power in that region than government forces. Moreover, the ability of the central government to assert its will against these organizations has weakened to the point that decisions made by the state against the cartels are not being implemented or are being implemented in a way that would guarantee failure.

By Fred Burton and Scott Stewart

Usually in the STRATFOR Global Security and Intelligence Report, we focus on the tactical details of terrorism and security issues in an effort to explain those issues and place them in perspective for our readers. Occasionally, though, we turn our focus away from the tactical realm in order to examine the bureaucratic processes that shape the way things run in the counterterrorism, counterintelligence and security arena. This look into the struggle by the U.S. government to ensure visa security is one of those analyses.

By Scott Stewart

On Aug. 3, the U.S. Consulate in Juarez, Mexico, reopened after being closed for four days. On July 29, the consulate had announced in a warden message that it would be closed July 30 and would remain closed until a review of the consulate's security posture could be completed.

The closure appears to be linked to a message found on July 15, signed by La Linea, the enforcement arm of the Juarez cartel. This message was discovered at the scene shortly after a small improvised explosive device(IED) in a car was used in a well-coordinated ambush against federal police agents in Juarez, killing two agents. In the message, La Linea claimed credit for the attack and demanded that the U.S. Drug Enforcement Administration (DEA) and FBI investigate and remove the head of Chihuahua State Police Intelligence (CIPOL), who the message said is working with the Sinaloa Federation and its leader, Joaquin "El Chapo" Guzman Loera. The message threatened that if the intelligence official was not removed by July 30, La Linea would deploy a car bomb with 100 kilograms of high explosives in Juarez.

By George Friedman

The Iranian government has rejected, at least for the moment, a proposal from the P-5+1 to ship the majority of its low-enriched uranium abroad for further enrichment. The group is now considering the next step in the roadmap that it laid out last April. The next step was a new round of sanctions, this time meant to be crippling. The only crippling sanction available is to cut off the supply of gasoline, since Iran imports 35 percent of its refined gasoline products. That would theoretically cripple the Iranian economy and compel the Iranians to comply with U.S. demands over the nuclear issue.

We have written extensively on the ability of sanctions to work in Iran. There is, however, a broader question, which is the general utility of sanctions in international affairs. The Iranian government said last week that sanctions don't concern it because, historically, sanctions have not succeeded. This partly explains Iranian intransigence: The Iranians don't feel they have anything to fear from sanctions. The question is whether the Iranian view is correct and why they would believe it — and if they are correct, why the P-5+1 would even consider imposing sanctions.

By George Friedman

U.S. Attorney General Eric Holder has decided that Khalid Sheikh Mohammed will be tried in federal court in New York. Holder's decision was driven by the need for the U.S. government to decide how to dispose of prisoners at Guantanamo Bay, a U.S. Naval base outside the boundaries of the United States selected as the camp in which to hold suspected al Qaeda members.

We very carefully use the word "camp" rather than prison or prisoner of war camp. This is because of an ongoing and profound ambiguity not only in U.S. government perceptions of how to define those held there, but also due to uncertainties in international law, particularly with regard to the Geneva Conventions of 1949. Were the U.S. facility at Guantanamo a prison, then its residents would be criminals. If it were a POW camp, then they would be enemy soldiers being held under the rules of war. It has never really been decided which these men are, and therefore their legal standing has remained unclear.

By Ben West and Fred Burton

U.S. Attorney General Eric Holder announced Nov. 13 that the U.S. Justice Department had decided to try five suspected terrorists currently being held at Guantanamo Bay in the U.S. District Court for the Southern District of New York, located in lower Manhattan. The five suspects — Khalid Sheikh Mohammed, Walid Muhammad Salih Mubarek bin Attash, Ramzi bin al-Shibh, Ali Abdul-Aziz Ali and Mustafa Ahmed al-Hawsawi — are all accused of being involved in the 9/11 plot, with Mohammed describing himself as the mastermind in a 2003 confession.

The announcement follows from U.S. President Barack Obama's first executive order, which he signed on Jan. 22, to close the U.S. military detention facility at Guantanamo Bay and another executive order to suspend the military tribunals set up under the Bush administration to try suspected terrorists. Holder's decision has generated much debate and highlighted the legal murkiness concerning the status of Guantanamo detainees and how best to bring them to justice.

By Scott Stewart and Fred Burton

When a lone gunman, U.S. Army Maj. Nidal Malik Hasan, opened fire on a group of soldiers at Fort Hood, Texas, the victims were in the Soldier Readiness Processing Center, a facility on the base where troops are prepared for deployment and where they take care of certain processing tasks such as completing insurance paperwork and receiving medical examinations and vaccinations.

Even though the targets of Hasan's attack were soldiers, they represented a very soft target in this environment. Most soldiers on bases inside the United States are normally not armed and are only provided weapons for training. The only personnel who regularly carry weapons are the military police and the base civilian police officers. In addition to being unarmed, the soldiers at the center were closely packed together in the facility as they waited to proceed from station to station. The unarmed, densely packed mass of people allowed Hasan to kill 13 (12 soldiers and one civilian employee of the center) and wound 42 others when he opened fire.

By George Friedman

We are now at the 20th anniversary of the fall of the Berlin Wall and the beginning of the collapse of the Soviet empire in Eastern Europe. We are also nearing the 18th anniversary of the fall of the Soviet Union itself. This is more than simply a moment for reflection — it is a moment to consider the current state of the region and of Russia versus that whose passing we are now commemorating. To do that, we must re-examine why the Soviet empire collapsed, and the current status of the same forces that caused that collapse.

By George Friedman

Making sense of U.S. President Barack Obama's strategy at this moment is difficult. Not only is it a work in progress, but the pending decisions he has to make -- on Iran, Afghanistan and Russia -- tend to obscure underlying strategy. It is easy to confuse inaction with a lack of strategy. Of course, there may well be a lack of strategic thinking, but that does not mean there is a lack of strategy.

Strategy, as we have argued, is less a matter of choice than a matter of reality imposing itself on presidents. Former U.S. President George W. Bush, for example, rarely had a chance to make strategy. He was caught in a whirlwind after only nine months in office and spent the rest of his presidency responding to events, making choices from a menu of very bad options. Similarly, Obama came into office with a preset menu of limited choices. He seems to be fighting to create new choices, not liking what is on the menu. He may succeed. But it is important to understand the overwhelming forces that shape his choices and to understand the degree to which whatever he chooses is embedded in U.S. grand strategy, a strategy imposed by geopolitical reality.

By George Friedman and Peter Zeihan

U.S. Vice President Joe Biden toured several countries in Central Europe last week, including the Czech Republic and Poland. The trip comes just a few weeks after the United States reversed course and decided not to construct a ballistic missile defense (BMD) system in those two countries. While the system would have had little effect on the national security of either Poland or the Czech Republic, it was taken as a symbol of U.S. commitment to these two countries and to former Soviet satellites generally. The BMD cancellation accordingly caused intense concern in both countries and the rest of the region.

By Scott Stewart

On Oct. 8, 2009, French police and agents from the Central Directorate of Interior Intelligence (known by its French acronym, DCRI) arrested French particle physicist Adlene Hicheur and his brother, Halim, who has a Ph.D. in physiology and biomechanics. French authorities arrested the brothers at their family home in Vienne, France, and also seized an assortment of computers and electronic media. After being questioned, Adlene Hicheur was kept in custody and charged on Oct. 12 with criminal association with a terrorist enterprise for allegedly helping al Qaeda in the Islamic Maghreb (AQIM) plan terrorist attacks in France. Halim Hicheur was released and denies that the brothers were involved in any wrongdoing.

By George Friedman and Reva Bhalla

The decision over whether to send more U.S. troops into Afghanistan may wait until the contested Afghan election is resolved, U.S. officials said Oct. 18. The announcement comes as U.S. President Barack Obama is approaching a decision on the war in Afghanistan. During the 2008 U.S. presidential campaign, Obama argued that Iraq was the wrong war at the wrong time, but Afghanistan was a necessary war. His reasoning went that the threat to the United States came from al Qaeda, Afghanistan had been al Qaeda's sanctuary, and if the United States were to abandon Afghanistan, al Qaeda would re-establish itself and once again threaten the U.S. homeland. Withdrawal from Afghanistan would hence be dangerous, and prosecution of the war was therefore necessary.

By George Friedman

U.S. President Barack Obama won the Nobel Peace Prize last week. Alfred Nobel, the inventor of dynamite, established the prize, which was to be awarded to the person who has accomplished "the most or the best work for fraternity among nations, for the abolition or reduction of standing armies and for the promotion of peace congresses." The mechanism for awarding the peace prize is very different from the other Nobel categories. Academic bodies, such as the Royal Swedish Academy of Sciences, decide who wins the other prizes. Alfred Nobel's will stated, however, that a committee of five selected by the Norwegian legislature, or Storting, should award the peace prize.

By Scott Stewart

Pakistan has been a busy place over the past few weeks. The Pakistani armed forces have been conducting raids and airstrikes against the Tehrik-i-Taliban Pakistan (TTP) and other foreign Islamist fighters in Bajaur Agency, a district inside Pakistan's Federally Administered Tribal Areas (FATA), while wrapping up their preparations for a major military offensive into South Waziristan. The United States has conducted several successful missile attacks targeting militants hiding in areas along the Afghan-Pakistani border using unmanned aerial vehicles.

By George Friedman

Two major leaks occurred last weekend over the Iran matter.

In the first, The New York Times published an article reporting that staff at the International Atomic Energy Agency (IAEA), the U.N. nuclear oversight group, had produced an unreleased report saying that Iran was much more advanced in its nuclear program than the IAEA had thought previously. According to the report, Iran now has all the data needed to design a nuclear weapon. The New York Times article added that U.S. intelligence was re-examining the National Intelligence Estimate (NIE) of 2007, which had stated that Iran was not actively pursuing a nuclear weapon.

By Scott Stewart

The Islamabad office of the United Nations' World Food Program (WFP) was struck by a suicide bomber just after noon local time Oct. 5. The bomber, who wore an improvised explosive device (IED) concealed under his clothing, was wearing the uniform of the Frontier Constabulary, a paramilitary force, and reportedly made his way past perimeter security and into the facility under the ruse of asking to use the restroom. Once inside the facility, he detonated his explosive device, killing five WFP employees — one Iraqi national and four locals — and injuring six others.

By Scott Stewart

At approximately 2 a.m. on Sept. 25, a small improvised explosive device (IED) consisting of three or four butane canisters was used to attack a Banamex bank branch in the Milpa Alta delegation of Mexico City. The device damaged an ATM and shattered the bank's front windows. It was not an isolated event. The bombing was the seventh recorded IED attack in the Federal District — and the fifth such attack against a local bank branch — since the beginning of September.

By George Friedman

The United States announced Sept. 17 that it would abandon a plan for placing ballistic missile defense (BMD) installations in Poland and the Czech Republic. Instead of the planned system, which was intended to defend primarily against a potential crude intercontinental ballistic missile (ICBM) threat from Iran against the United States, the administration chose a restructured system that will begin by providing some protection to Europe using U.S. Navy ships based on either the North or Mediterranean seas. The Obama administration has argued that this system will be online sooner than the previously planned system and that follow-on systems will protect the United States. It was also revealed that the latest National Intelligence Estimate finds that Iran is further away from having a true intercontinental missile capability than previously thought, meaning protecting Europe is a more pressing concern than protecting the United States.

By Scott Stewart

On Saturday, Sept. 19, the Indonesian National Police announced that a DNA test has positively identified a man killed Sept. 17 as Noordin Mohammad Top. Top was killed in a raid on a safe-house in the outskirts of Solo, Central Java, that resulted in a prolonged firefight between Indonesian authorities and militants. Police said four militants were killed in the incident and three more were taken into custody. (Two of them were arrested before the raid.) Authorities also recovered a large quantity of explosives during the raid that they believe the militant group was preparing to use in an attack on Indonesian President Susilo Bambang Yudhoyono.