Energy

What the Iron Man-like character is claiming for his futuristic automotive company is not unheard of. On a systemic basis, mammoth institutional investment—especially from sovereign wealth funds (SWFs)—is flowing into start-ups and technology-oriented publicly traded companies. In this case, Saudi billions would help Mr Musk escape the pressures of being publicly listed. SWFs have invested large sums into high-growth start-ups promising innovation and financial returns. In fact, just this month, Saudi’s Public Investment Fund (PIF) announced a US$1bn investment in Tesla’s rival, Lucid, and a US$2bn stake in Tesla. The rise in SWF balance sheets and activity is having ramifications on global efforts to be more Silicon Valley-like, and on Silicon Valley itself.

In November, 2015, a crisis had erupted between Russia and Turkey after NATO-member Turkey shot down a Russian fighter jet over the Syrian–Turkish border after it had ostensibly crossed into Turkish airspace (Financial Times, 2015). Although the sides managed to avoid further escalation of tensions, relations consequently suffered a major breakdown. Immediately after the Russian-Turkish fallout, many commentators were quick to argue that the Turkish stream pipeline was shelved for the foreseeable future (BBC News, 2015; Johnson, 2015). That seemed logical and in line with the theory, almost de rigueur, that equates authoritarianism at home and an adversarial foreign policy.

President Donald Trump's decision to remove the U.S. from the Paris climate agreementis yet another manifestation -- alongside the budget submitted to Congress and the president's speech at NATO headquarters in Brussels -- of how he continues to see U.S. interests as narrowly economic, and U.S. influence as exerted solely through hard power.