Worthwhile Reading & Viewing

When I met Putin as a young colonel in the KGB.

Thoughts on Russia and Ukraine, by Vitaliy Katsenelson, an American investment manager who was born in Russia.  Registration may be required–this is the first post of a three-part series.

A historian specializing in Russia has some thoughts.

A proposal to undermine Putin by stealing technical talent.

Don’t Be Preedy…a CB post from 2009 that I ran across while searching for something entirely different.

The Rise of Hot Capital, at Quillette.

And a video on Free Speech and Innovation, from Claire Lehmann and David Perell.

 

The Odessa Steps

The early Soviet propaganda movie, The Battleship Potemkin, culminates in a prolonged and shocking sequence of local citizens – men, women and children – gunned down by remorseless Czarist soldiers on Odessa’s famed harbor-to-town staircase. The sequence remains a shocker. (And is still studied in film schools, apparently, for being ground-breaking effective and technologically ahead of the time.) Historically, there was never such a massacre on the Steps, but the sequence served as a kind of cinematic shorthand for State brutality aimed at essentially harmless, unarmed, unthreatening civilians in a public place; civilians who were seen to be defying the authority of the State. And so the armed minions of the State acted – because even the mildest defiance of Authority on the part of ordinary workers and their families is a stab at the heart of those Authorities. They cannot brook defiance, and so out come the armed police, just as they have this week in the streets of Ottawa with regard to the truckers protesting vaccine mandates. All the forces of the law, with the cheerful approval of the Canadian established media, the intellectual and ruling class – it’s really rather breathtaking, this concentrated venom and enthusiasm for breaking heads and bones, all aimed at the workers participating in a civil and well-organized street protest. (It would seem that as far as the RCMP are concerned, Dudley Do-Right and Constable Benton Fraser both have left the building – so much for Canadian ‘polite.’)

What will happen now that the ordinary working stiffs of Canada have been so casually abused by their native ruling class; threatened with having bank accounts frozen, their means of earning a living confiscated, themselves arrested, while their pets and children given over to the tender care of animal shelters and the child “protection” authorities? How far will this protest go now, bouncing down the Odessa Steps like a runaway baby carriage? It could be that Canadians, with the ethos of being polite, courteous, and truthful, may be truly shocked, shocked to the point of open rebellion over being consistently lied about and bullied by their ruling elite. In America, our own flyover country residents are perfectly accustomed to being abused as stupid, red-necked rubes by our own elite class. It’s what we have come to expect of NPR, the political ruling class, the New York/Hollywood cultural axis and the inside-the-Beltway-Washington DC denizens; what we have come to expect of them anyway. It may be a new and shocking development to ordinary, working-class Canadians, this contempt for the working class, though. Comment as you wish.

Keep on Truckin’

The Canadian truckers’ protest has been prominent on alternate media although ignored by “corporate media.” After 50,000 truckers got going on the way to confront the Trudeau regime in Canada, millions of dollars were donated to a “GoFundMe” crowdsourcing site. The donators should have checked the history of that outfit because they have a history of refusing conservative causes. One, of course, was the Kyle Rittenhouse case in which they refused to accept donations. Even after his acquittal, they refused.

The trucker funding reached $10 million and GoFundMe tried to appropriate the money to give to left wing causes like Black Lives Matter. Immediate pushback began with Elon Musk.

Now, the threat of charge back fees has caused GoFundMe to retreat and promise refunds.

The backlash against the crowdfunding company was fast, massive and direct. Facing legal action, U.S. state lawsuits and massive charge-back fees from outraged donors contesting refunds through their banks and credit cards, GoFundMe had an overnight change in position:

Now, the Trudeau regime is threatening retaliation, including arrest. The towing companies were first asked to tow the trucks away. They responded that their drivers all had Covid and were unavailable. Then the Mayor of Ottawa threatened them with the Canadian army. The army has responded a refusal.

Paul Vieria, the Canadian correspondent for the Wall Street Journal, tweeted yesterday that a spokesman for Canada’s defence minister, Anita Anand, said: “The Canadian Armed Forces are not involved in law enforcement in this situation, and there are no plans for such CAF involvement.”

Spokesman for Canada’s defence minister, following comments from Ottawa police chief Sloly on possible need for military’s help in trucker protest: “The Canadian Armed Forces are not involved in law enforcement in this situation, and there are no plans for such CAF involvement.”

An interesting report from an Ottawa resident is here.

There is now growing interest in organizing a similar protest here.

The American Truckers formed a Facebook group that as of Sunday has more than 67,000 members.

The page states that they support freedom and they are done with the mandates.

“We are part of many large groups who believe in our founding fathers. We believe everyone has a voice. We support our freedom. Help us spread the word about this group and together we all can make it a better place.. God Bless America,” the page reads.

The group has not yet announced it’s start date – but says the convoy will be scheduled soon.

Facebook immediately removed the page. We’ll see.

Not one Canadian provincial “premier’ has supported the truckers.
Not one. However one US Governor has supported their right to protest. Guess who?

DeSantis has announced that the GoFundMe decision to confiscate the donations is mail fraud.
That now appears to be moot as the crowd funding company has retreated from its threat.

What is the next development? Maybe this ?

Does the Bear Market start tomorrow?

Tomorrow, the vaccine mandate for truckers in the US begins. The Canadian border is already affected by the Canada mandate and there is already some pain. Truckers work alone although a small number share driving with wives or other partners. Their exposure to the general public is minimal in their work life. The same mandate by the US will block most Mexican drivers from bringing fresh fruits and vegetables into the US. All three groups of drivers have a low compliance with vaccination. The result will likely contribute to the supply chain crisis, which has only worsened the past few months.

Now, The stock market is showing weakness.

Energy policy has driven up oil, fuel, packaging and gas prices. Transportation costs have skyrocketed. Emission regulations have driven up port costs and delayed transportation; fracturing the supply chain. Vaccine mandates have hit the manufacturing and processing sectors. Legislative policy and COVID spending have artificially inflated the economy. Monetary policy has devalued the dollar and driven even higher inflation.

The mandate will affect 50% of US truckers. Mexican truckers are unknown but Canadian truckers are already demonstrating in Ottawa.

Into this hurricane of stagflation, the fed is going to raise interest rates. The stock market could lose half its inflated value. The NASDAQ is already responding to the storm clouds. Employment is going to start getting really sketchy. Congress will eventually announce their remedy, which will be more spending – and the dollar gets worse.

A market expert is predicting a bear market.

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The Great Liquidation

America is hanging by a thread.  A great liquidation is underway, with many of the structures that support American society..or, in some cases, any viable society…being kicked away, sold off piecemeal, or just wantonly destroyed.  I’m talking about physical structures, legal structures, and social structures.

I do not think it is too late to turn this trend around, but the situation is very serious, and I’m going to ask you to gaze into the abyss with me before I discuss some reasons for hope.

Consider:

–Significant parts of America’s energy infrastructure are being destroyed or targeted for destruction.  For example, the Indian Point nuclear plant, serving NYC, was closed in April, despite the fact that this closure will likely create grid instability–and will certainly result in the zero-emissions power it had previously produced being generated instead by sources which do generate emissions. (Yet at the same time, NYC is banning the use of natural gas in new buildings–which will further increase the demand for electricity!) The Diablo Canyon nuclear plant, the largest source of electricity in California, is also scheduled for closure in 2025.  The cost of Diablo Canyon was $14.5B in present-day dollars, and I estimate that this represents at least 50,000 person-years of labor.  Something like 1200 working lifetimes, being wantonly trashed. Only a society which is very rich (for now)–disrespectful of its past accomplishments–and uncaring about the future would act in this way.

And these examples represent only a small portion of the assaults being conducted on America’s energy infrastructure. Peaker plants which ensure continued output under tough conditions, are being closed, with much hand-waving about how ‘demand management’ will solve any problems.  Oil and gas production are being squeezed. Pipeline construction is being suppressed, at the same time Putin is given the US green light for a Russia-Germany pipeline.  Energy is being transformed from an American asset into an American vulnerability.

–Billions of dollars of America military equipment were abandoned in Afghanistan and are now in the hands of the Taliban.  If we use a conservative estimate of $40 billion, that represents at least 400,000 person-years of human labor, thrown away. But that’s not the worst of it, of course: much of that equipment will now be used against us or our allies.  There are already reports of formerly-American weapons on their way to Iran.

The effect of the horribly-executed Afghanistan withdrawal on our credibility as an alliance partner will be devastating.  While many foreign policy types expressed worry about what expecting Germany to pay a larger % of the NATO bill would do to our alliances, any imagined impact of that was trivial compared with the impact of the current debacle.  The negative effect on American military recruiting, also, will be considerable, as discussed by several commenters at this blog.  Overall, America’s actual and perceived power position in the world has been greatly reduced over the past few months.

–American manufacturing has been negatively impacted by numerous policy choices and social factors, and America is no longer the world’s facto ry: that role now falls to China.  We have become extremely dependent on China and other countries for many products and components of products–as we found out during last year’s Covid crisis when we were subject to threats that we would ‘burn in the fire of Covid’ if China should choose to deny us critical pharmaceuticals and ingredients thereof.  We have become highly dependent on other countries for electronics manufacturing, especially microchips: a single Taiwanese company, TSMC, acts as the ‘foundry’ for a whole range of chips produced to the designs of many different American companies.  A Chinese takeover of Taiwan could be devastating to our industry, and such takeover appears considerably more likely than it did a couple of months ago.

Manufacturing was, for a couple of decades, considered by the approved-expert classes to be an increasingly-unimportant industry, populated only by those with inferior and uncreative minds. There is some recognition growing lately that this field may actually matter. But American politicians generally have so little comprehension of how the economy actually works that it is hard to believe that any remedies that they propose will be efficacious ones.  As example #1, I give you Joseph Biden: a man who asserted that anyone who can mine coal can ‘learn to code’, and who apparently believes that manually shoveling coal into furnaces is an actual substantial occupation in America today.  Biden also said, referring to China: “They’re not competition for us.”  This was in mid-2019!

America has given up much of its potential in manufacturing. and the consequences are severe for national security and for millions of people.  

–And, speaking of China: the United States has increasingly adopted a submissive position regarding to that country.  Major corporations are bending over backwards to avoid offending the leadership of that country…see my post here for some examples.  Universities, too, have become increasingly dependent on Chinese students and money.  At MIT, a board member of the McGovern Institute for Brain Research raised concerns about whether a certain research collaboration with China was appropriate on national security grounds…other board members took offense, and even said that any serious inquiry into the ambitions of the Chinese Communist Party would be “racist.” She was told to ‘stick to science’ and not to mention China again.

The situation is unpleasantly like what Churchill observed in the Britain of the late 1930s, where he wrote of “the unendurable..sense of our country falling into the power, into the orbit and influence of Nazi Germany, and of our existence becoming dependent upon their good will or pleasure”…A “policy of submission” would entail “restrictions” upon freedom of speech and the press. “Indeed, I hear it said sometimes now that we cannot allow the Nazi system of dictatorship to be criticized by ordinary, common English politicians.” (quote from William Manchester, The Last Lion)

At the same time that the Biden administration is pushing for total electrification of transportation, they seem to have little concern about the fact that the US is far from self-sufficient in the minerals required for electrification technologies–and Biden’s son Hunter has been involved in a deal to give China a strengthened position in the supply of cobalt, a key material needed for battery production.  We are being positioned for a return to the kind of extreme energy dependence on other nations that for years gave the OPEC nations so much power and hence contributed to Middle East instability.

America’s relative strength vis-a-vis China is under threat not only as measured by traditional military, economic, and geopolitical factors, but in terms of the influence of the CCP on American internal politics and affairs.

–Media, academia, and increasingly business, indeed the majority of institutions in our society…are being taken over by an obsession with race and ethnicities.  People are not seen as individuals, but rather as members of ‘communities’, which term now refers to demographic categories.  Those who dare deviate from the political and social views assigned to members of their groups are denounced; see for example the attacks on the new Virginia Lt Governor Winsome Sears.

According to this 2018 survey, favorable race relations in the US peaked in 2009, with 66% of people rating them ‘good’…falling to only 26% assigning a ‘good’ evaluation in 2018.  A more recent Gallup poll shows that favorable views of race relations have fallen sharply over the past several years.

America’s colleges have been particularly race-obsessed:  see for example some college reading lists, with their assumption that ““diversity is defined by race or gender.” The link in the last sentence is from 2017…the obsession has clearly gotten much worse since then.

And it has gone way beyond colleges. “I’m so exhausted with being reduced to my race,” a girl at Grace Church School, an upscale private school in Manhattan said. “The first step of antiracism is to racialize every single dimension of my identity.” Kindergarten students at Riverdale Country School in the Bronx are taught to identify their skin color by mixing paint colors. The lower school chief in an email last year instructed parents to avoid talk of colorblindness and “acknowledge racial differences.”  These cases are only one example of a much wider phenomenon.

If this sort of thing continues, then at best…at best…America becomes something like the Austro-Hungarian Empire, about which historian AJP Taylor wrote:

The appointment of every school teacher, of every railway porter, of every hospital doctor, of every tax-collector, was a signal for national struggle. Besides, private industry looked to the state for aid from tariffs and subsidies; these, in every country, produce ‘log-rolling,’ and nationalism offered an added lever with which to shift the logs. German industries demanded state aid to preserve their privileged position; Czech industries demanded state aid to redress the inequalities of the past. The first generation of national rivals had been the products of universities and fought for appointment at the highest professional level: their disputes concerned only a few hundred state jobs. The generation which followed them was the result of universal elementary education and fought for the trivial state employment which existed in every village; hence the more popular national conflicts at the turn of the century.

A creaky and dysfunctional society like Austria-Hungary is the best outcome for America if the race obsession continues on its current path…it is possible, even likely, that the actual outcome will be something much darker. Categorizing people by groups and defining them by the single dimension of membership in such groups is very, very dangerous.  I’m reminded of something Ralph Peters wrote:

“Man loves, men hate. While individual men and women can sustain feelings of love over a lifetime toward a parent or through decades toward a spouse, no significant group in human history has sustained an emotion that could honestly be characterized as love. Groups hate. And they hate well…Love is an introspective emotion, while hate is easily extroverted…We refuse to believe that the “civilized peoples of the Balkans could slaughter each other over an event that occurred over six hundred years ago. But they do. Hatred does not need a reason, only an excuse.”

Excuses for inter-group resentment are now being manufactured at high speed, even mass produced.  Really want to go there?

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