Category: Politics

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A Return to a US Gilded Age?

I have been trying to figure out the logic of Trump’s tariff policies and apparent desire for a global trade war. Although he does not appear to comprehend that tariffs are a tax on consumers in the country doing the tariffing, I can (sort of) understand that he may think that this is a good way to protect US manufacturing and employment. But because the evidence that tariffs wind up hurting domestic consumers and do not necessarily bring back manufacturing, farming or employment in those or other sectors, I found myself somewhat mystified as to why Trump is determined to push them through.

I realise that he is using them as a form of leverage to obtain concessions in non-trade areas like illicit drug interdiction and immigration. But he seems to want to go further than forcing neighbouring countries to tighten their border controls in exchange of a lifting of tariffs or reduction in the amount of them (both in terms of reducing tariff costs–say from 25 percent to 10 percent–as well as the range of goods subject to tariffs). He truly does appear think that tariffs are good for the US, all evidence to the contrary.

Because of his intellectual limitations (remember my empty vessel argument of a couple of weeks ago), I then thought about his economic advisors and how they may see the issue. Here is where I think I have found the answer to Trump’s obsession with tariffs. It has to do with the so-called Gilded Age.

Readers may recall Trump speaking of president William McKinley and the “Gilded Age” when the US was prosperous, expanding and turning into the global superpower that it eventually became. He even restored the name “Mount McKinley” to the mountain in Alaska known as Denali by indigenous people and has otherwise extolled the virtues of the 25th US president even though McKinley was assassinated while in office in 1901 (Vice President Teddy Roosevelt succeeded him). As it turns out at least one person (an anarchist) was not happy with his policies. Yet it seems that Trump seeks to return to a new US Gilded Age in light of what he and his advisors see as the failure of capitalist globalisation.

Needless to say, there have been global trade systems since ancient times. Notions of Riccardian and competitive advantage were eventually developed around them to explain and justify the commonweal benefits of global trade. This accelerated with the technology-driven globalisation of production, consumption and exchange that emerged as of the 1990s and grew exponentially in the following two and a half decades. While all economic boats would be lifted by this rising tide, the argument went, the expansion in trade was expected to benefit the US the most because it was the core of the global capitalist system, including finance, advanced manufacturing, information and high-tech services, logistics and even value-added primary good extraction.

For its adherents, the post-Bretton Woods moment was the US’s oyster and free trade under standardised monetary exchange conditions was considered to be so universally positive that theories (known as “neo-modernization” theories after the original 1950s variants) were advanced that posited that joining global systems of trade would lead to rising middle classes and eventually democracies in poorer authoritarian countries that adopted the export-import logic and other development models such as the so-called “Washington Consensus.” The Consensus (by industrialised nation’s finance ministers of the time) married neoliberal domestic economic theories based on the primacy of finance capital in determining a country’s investment opportunities in a macroeconomic environment characterised by the reduction of the State’s role as both manager and direct producer of national goods and services, on the one hand, with an abject faith in the invisible hand dynamics at play when national markets were opened up to unfettered foreign competition.

As it turns out, things did not go as planned. Rather than benefit the most as the core of the globalised system of trade, the US saw significant declines in domestic manufacturing, mining and other extractive enterprises as well as a number of value-added business sectors (textiles, shoes, ship-building) when US firms migrated abroad in pursuit of cheaper labour and supply chain inputs. Even service sectors saw business move abroad–think of off-shore call and computer service centres–something that in the aggregate saw the economic decline of the so-called Industrial Age-originated “Rust Belt,” growth of increasingly precarious labor markets and the rise of a host of social pathologies associated with that decline (the book Hillbilly Elegy by JD Vance sums them up pretty well even if it is a fictionalised account of his own life story pre-politics).

Put bluntly, instead of being at the top of the globalized pile, when it came to many US domestic businesses, profits were prioritised over patriotism, they moved their businesses abroad and the benefits of globalisation went to them (in terms of re-patriated profits), not their former employees and the communities that depended on their livelihoods. When it comes to free trade and open markets, businesses acted as capitalists first, and that made them globalists rather than nationalists.

The bottom line is that while the US remains the core of the global economy, the location of where globalisation impacted negatively the most within the US and the perception of its general decline as a result is a strong component of the economic nationalist discourse that propels the modern US Right. From Pat Buchanan to Rand Paul to Steve Bannon, US economic nationalists see US decline as rooted in two main things: 1) the migration of industries away from the Heartland to foreign countries which do not adhere to the overly restrictive environmental, labor, welfare and taxation standards of the US; and 2) the “woke” cultural transitions associated with granting equal rights to everyone regardless of merit while opening admission to immigrants from foreign cultures that are inherently anti-Western in orientation and yet upon which the US was increasingly dependent for both skilled and unskilled labor.

This is where economic nationalists on Trump’s staff like Peter Navarro come in. It is he and his colleagues that put the thought of the McKinley Gilded Age into Trump’s otherwise adderal-addled head. For them, a global trade war suits the US because as the biggest economic bully on the block, others will fold their cards before it has to. The belief is that although there will be short-term pain in the US domestic economy, eventually foreign countries and businesses will, for their own political as well as economic reasons, bend a knee and comply with US demands on trade and non-trade issues. Some manufacturing and other businesses may return to the US but even if they just adjust their bilateral export pricing and other trade measures in line with US demands, the view is that the US will eventually win and ultimately prosper because the advantages it has when it comes to complex economies of scale.

We need to underscore that many trade globalisation supporters did not see the US as necessarily benefitting more than others under the modern trade framework. Instead, they saw all nations receiving some benefit in excess of what they would accrue if they did not join the network, and within that “limited gains” perspective the US would still do well even if it lost uncompetitive businesses to foreign markets that held comparative and competitive advantages like lower wages and costs and proximity of raw materials, rising educational standards etc. They believed that the US would simply specialise in higher-end production and services that used advanced technologies and value-added capital goods while continuing to domestically supply most consumer non-durables like food staples and the like.

This is different than what the economic nationalists envisioned, and whereas the globalist economic vision is an integral part of the liberal internationalist perspective and institutional order codified in the likes of the IMF, WTO and World Bank, economic nationalists see the entire combine as inimical to US economic supremacy and hence an existential macroeconomic threat that increased US economic dependency on the whims of others such as the PRC and EU. Where globalists see trade interdependence and mutual benefit, economic nationalists see trade dependency and economic vulnerability The latter is the dominant rationale in the White House at the moment.

With Navarro and other economic nationalists back in the West Wing and the liberal international order in disarray for more than just economic reasons, the in-house consensus is that the time is ripe to push for another Gilded Age on the back of a tariff-based national economic restructuring. Coupled with a new version of gunboat diplomacy and carrying a foreign policy Big Stick, Trump is offered as the champion of and vehicle for that metamorphosis.

The trouble is that US capitalism today is not the capitalism of a century ago, nor is the nature of its connections to a globalized capitalist world with multiple centres of economic gravity. Think of the Middle East, the Arab oil oligarchies and their sovereign hedge funds. Think of the reach of the PRC’s Belt and Road initiative. Think of the rise of the Global South and emergence of the BRICS as an economic bloc. All of this suggests that while Trump may see himself as McKinley bringing in a new US Gilded Age, he is just a real-time protagonist in his economic advisor’s pipe dreams. What may have worked at the turn of the 20th century in terms of tariffs benefiting the US is unlikely to work in the early 21st century, at least not in the measure envisioned. So even if some countries cave to US demands on a host of issues, the chances of the US “winning” a truly global trade war seem long at best, and even if the US “wins” the economic contest, the political costs of subjecting the US electorate to consumer price hikes and supply chain disruption through the 2026 Congressional midterm elections and 2028 presidential vote may spell serious trouble for Trump, MAGA and the GOP regardless of who may or may not succeed him. The political fallout of the tariff moves, in other words, may yield negative dividends even if it is “successful” because the short-term economic pain that Musk and Trump talk about as necessary may not be tolerable for many voters, including those in Red States.

If that is the case, all the tariff-led economic gilding project may just turn into political rust.

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Thinking about life in a nuclear armed crowd.

The title of this post comes from Albert Wohlstetter’s 1976 seminal essay Moving Towards Life in a Nuclear Armed Crowd. In that essay he contemplated a world in which several nations had nuclear weapons, and also the strategic logics governing their proliferation, deployment and use (mainly as a deterrent). For years after his essay was published, the number of nuclear-armed states remained low. Today they include the US, UK, France, PRC, Russia, India and Pakistan, with Israel as an unacknowledged member of the club and Iran and North Korea as rogue aspirants. At one time late in the Cold War, Argentina, Brazil and South Africa had nuclear weapons programs but abandoned them as part of the their transitions to democracy. By and large the Non-Proliferation Treaty (NPT) has kept the acquisition of nuclear weapons in check, something that along with various arms control agreements between the US and USSR/Russia (SALT I and II, START, the Intermediate Range Nuclear Forces Treaty (INF)), helped stabilise a low number nuclear weapons state status quo for five decades.

But that may be about to change. Not only have nuclear powers like the PRC, India and Pakistan opted to not be bound by international arms control agreements and others like Israel, Iran, India, Pakistan and DPRK have ignored the NPT. All of the major bilateral treaties between the US and Russia governing strategic and tactical nuclear weapons have been allowed to lapse. The non-proliferation regime now mostly exists on paper and is self-enforcing in any event. There are no genuine compliance mechanisms outside of voluntary compliance by States themselves, and in the current moment nuclear armed states do not wish to comply

The situation has been made considerably worse by the re-election of Donald Trump to the US presidency. Although he speaks of securing some sort of “deal” with Iran that freezes its nuclear weapons development programs, his threats of withdrawing from NATO, including withdrawal of security guarantees under the collective security provisions of Article 5 of the NATO Charter, coupled with his pivot towards Russia in its conflict with Ukraine, has forced some countries to reconsider their approach towards nuclear weapons. Polish Prime Minister Donald Tusk told his parliament this week that Poland “must reach for the most modern possibilities, also related to nuclear weapons and modern unconventional weapons” because of the threat of Russian aggression and unreliability of the US as a security partner under such circumstances. Similarly, French President Emmanuel Macron has floated the idea of extending a French “nuclear umbrella” over Europe (read: NATO and the EU) should the US renege on its Article 5 obligations.

The perception that the US is no longer a reliable security partner, at least under the Trump administration, must be considered by front-line states such as South Korea and Taiwan, perhaps even Japan and Germany, that are threatened by nuclear armed rivals and which until now were heavily dependent on the US nuclear deterrent for defending against aggression from those rivals. The situation is made worse because Trump is now using extortion (he calls it “leverage”) as part of his approach to security partners. His demands that Ukraine sign over strategic mineral rights to the US and that Panama return control of the Panama Canal to the US under threat of re-occupation are part of a pattern in which US security guarantees are contingent on what the US can materially get in exchange for them. Even then, Trump is notoriously unethical and prone to lying and changing his mind, so what US guarantees may be offered may be rescinded down the road.

Trump wants US security partners to spend 2 to 5 percent of GDP on defence and threatens to not honour US agreements with them if they do not. Although this may well force some NATO members and others to up their spending on defence (as Australia, Poland and South Korea already do), the one-size-fits-all percentage of GDP demand fails to recognise the circumstances of small and medium democracies such as NZ, Portugal and Holland, among others. Trump may call it driving a hard bargain, others may say that his approach is “transactional,” but in truth he is extorting US allies on the security front in order to gain concessions in other areas. And for “whatever” reason, he admires Putin and deeply dislikes Ukrainian president Zelensky as well as Canadian Prime Minister Trudeau, something reflected in his approach to bilateral issues and the way he talks about them. The personal is very much political with Trump, and he is an impulsive bully when he believes that it suits him to be.

The US pivot towards Russia under Trump has been much discussed in terms of its implications for the world order, strategic balancing among Great Powers and the future of the US-centric alliance systems in Europe and Asia. It truly is a major transitional moment of friction in world affairs. But the issue of nuclear proliferation as a response to the changed US stance has gone relatively unnoticed. Remember, these are not the moves of rogue states that are hostile to the old liberal international order. These are and may well continue to be the responses of democratic and/or Western aligned states that were integral members of that old order, who now feel abandoned and vulnerable to the aggression of authoritarian Great Powers like Russia and the PRC.

In the absence of the US nuclear guarantee and in the security vacuum created by its strategic pivot, indigenous development and deployment of nuclear weapons becomes a distinct possibility for a number of states that used to have the US nuclear guarantee but now are unsure if that is still true, and have the technological capabilities to do so. The global spread of high technologies makes the pursuit of nuclear weapons easier than in previous eras, and if time, money and willpower are devoted to doing so, nuclear proliferation will inevitably happen. Remember that nuclear weapons are primarily deterrent weapons. They are designed to deter attacks or retaliate once attacked, but not to strike first (unless destruction of the targeted society is the objective and retaliation in kind is discounted). They are the ultimate hedge against aggression, and now some non-nuclear states are reconsidering their options in that regard because the US cannot be trusted to come to their defence.

Russia has repeatedly raised the spectre of using tactical nuclear weapons in Europe should it feel cornered, but even the Kremlin understands that this is more an intimidation bluff aimed at comfortable Western populations rather than a serious strategic gambit. But that only obtains if the US still honors its nuclear defense commitments under NATO Article 5, and if it no longer does, then the Europeans and other US allies need to reassess their nuclear options because Russian threats must, in that light, be considered sincere.

Even so, first use of nuclear weapons, specially against a non-nuclear state, remains as the ultimate red line. But that line has been blurred by Trump’s equivocation. Nuclear hedging has now become a realistic option not just for front-line democratic states facing authoritarian aggression, but with regards to the US itself because it is a no longer a reliable democratic ally but is instead a country dominated by an increasingly authoritarian policy mindset at home and in its relations further abroad. Ironically, the “madman with a nuke” thesis that served as the core of deterrence theory in the past and which continues to serve as the basis for resistance to Iran and North Korea’s nuclear weapons programs can now be applied to the US itself.

There are two ways to look at the situation. On the one hand the chances of nuclear proliferation have increased thanks to Trump’s foreign policy, especially with regards to US international commitments and alliance obligations. On the other hand, deterrence theory is in for an overhaul in light of the push to proliferate. This might re-invigorate notions of flexible response and moves to provide stop gaps in the escalatory chain from battlefield to strategic war. Notions of nuclear deterrence that were crafted in the Cold War and which did not change with the move from a bi-polar to a unipolar to a multi-polar international system must now be adapted to the realities of a looser configuration–some call them metroplexes or constellations–in which the spread of advanced technologies makes the possibility of indigenous development of nuclear deterrence capabilities more feasible than in the old security umbrella arrangements of previous decades.

The irony is that it is the US pivot towards Russia that has popped the cork on the nuclear proliferation bottle. States like Iran and the DPRK have been subject to sanctions regimes that have slowed the development of their nuclear arsenals. But that happened against the backdrop of the US providing binding security guarantees to its allies, offering a credible nuclear deterrent to those who would seek to do harm against them and giving material support to the NPT. That is not longer true. It is the US that now must be viewed with suspicion, if not fear. The briefcase with nuclear codes is within a few arm’s lengths wherever Trump goes and he is now staffing the highest ranks of the US military-security complex with personal loyalists and sycophants rather than seasoned, politically neutral, level headed professionals with experience in the practice of strategic gamesmanship, including nuclear deterrence and war planning. Under those circumstances it would be derelict for military and political leaders in erstwhile US allied states to not hedge their bets by considering acquiring nuclear weapons of their own.

This was not what Wohlstetter envisioned when he wrote his essay. But after a period where that nuclear armed crowd appeared to stabilise and even shrink, some of his insights have become relevant again. It may no longer be about MAD (mutual assured destruction), but it sure is SAD.

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School meals as human capital investment.

Although I do not usually write about NZ politics, I do follow them. I find that with the exception of a few commentators, coverage of domestic issues tends to be dominated by a fixation on personalities, scandals, “gotcha” questioning, “he said, she said” accusations, nitpicking about the daily minutia of pretty trivial matters and clickbait hysteria about usually inconsequential issues (such as the recent freedom of navigation/power projection exercise conducted by a small Chinese flotilla/task force that in no way presented a serious threat to NZ interests). The world is blowing up before our eyes and NZ media fixates on parliamentary bullying, politician’s name-calling, assorted partisan spin attempts and even the rhyming word salad vitriol spewing from one bloated onanist’s mouth. Rarely is there a reflection on the why of some policy controversies that extend beyond the immediacies of the moment. Worse yet, what starts out in corporate media coverage then gets siloed and echo-chambered down into social media cesspools where hatred and contempt for “others” is the most salient distinguishing feature of discourse.

As a short response, here I would like to very briefly do a reflection on the why of school meals.

Here is why: The most precious resource that a country has is its human capital. The creativity/productivity of its people are the true measure of its strength. Investment in human capital involves short- and long-term direct and indirect costs in human capital development, one of which is schooling. Since it is proven that well-fed kids do better academically and are more socially adjusted than hungry or poorly fed kids, school meals have long been considered to be an integral part of the indirect investment in (future) human capital. If for whatever reason parents cannot provide nutritious school meals for their kids to take to school (there are many, most not due to parental negligence), most societies accept the need to provide them in the school system using taxpayer-provided funding. This is not just a trait of democratic educational systems, Authoritarians well understand the concept of human capital development so are often just as prone to providing nutritious school means (often with propaganda associating the regime with school meal-provision programs).

For example, Argentina (where I was raised asa child), Brazil and Chile (where I researched and worked as an adult) all provide school meals at no or small cost to caregivers. This happened during periods of democratic rule as well as dictatorship, with the exception that the Pinochet dictatorship in Chile selectively closed entire schools and health clinics in working class neighbourhoods in order to weaken what it considered to be sources of class resistance to its murderous neoliberalism (from which NZ took many lessons, including its Labor Law reforms of the late 1980s and early 1990s, the legacies of which remain to this day). Similarly, some of the biggest protests against the chainsaw cost-cutting approach adopted by ACT Party favourite Javier Milei in Argentina involves cutting back on school meals, something that because of its extensive history in Argentina is considered to be a birthright, especially amongst the working classes. Along with other socio-economic indicators like the over-all poverty rate (now nearly 60 percent of the population), child malnutrition has surged in the (again, poor and low income) areas where school meals are the most needed and yet where meal cutbacks have been zealously applied.

That may be by design, like in the Pincohet regime’s approach in its day. Milei’s sociopathy simply sees the lower income strata as vermin that should be eliminated, not nurtured. Parsing David Seymour’s rhetoric on his school meal program and leaving aside the dubious circumstances in which the contract for his program was let, one gets the impression that he shares Milei’s Social Darwinistic worldview. We can only hope that he does not share Milei’s view that “blue eyed people” are “aesthetically superior” to dark-eyed folk (true story: Milei actually said this in a country where the majority of the country do not have blue eyes). But then again, Seymour’s attacks on the Treaty and adjacent attacks on Maori “privileges” seem to be cut from the same cloth as Milei’s.

That having been duly noted, the bottom line is that in most countries and certainly in the developed world, current tax dollars are used to invest in pursuit of future human capital returns. It complements immigration policy in that regard, as immigration provides short-term human capital inflows that over time can be transferred into inter-generation human capital development through education and the infrastructures that go with it (like school meals). In fact, dividends on this investment come in the form of productive adults upon whom less public money is spent on welfare, health and crime mitigation services, and who in fact pay more in taxes than those who wind up as dependents of those public services. Surely the trade-off is worth it.

It is therefore mistaken and short-sighted to claim that it is not the NZ school system’s responsibility to provide student meals. Those meals are a collective good that serve both the present and future commonweal. As such, they should be nutritionally sufficient to help a young person’s development, not just a cost that must be kept low. Scrimping on meal costs and arguing about parental responsibility at the expense of boosting NZ’s future human capital is folly.

But that is where NZ is today.

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Scholarly Link: The Comparative Notebook.

I am pleased that the under-recognized scholar (and previous co-author of mine) Kate Nicholl has decided to join Substack and publish her thoughts on comparative politics. By using Substack she wants to bridge the gap between scholarly articles and opinion editorials (op eds). Her gift as a writer is to make the complicated seem simple.

Her stack is free so please check it out. Knowing her work as well as I do, I can confidently say that she deserves to be read by wider audiences. In her first Substack essay she briefly explains why comparisons between NZ and Ireland or Singapore are largely spurious from both a methodological as well as a policy standpoint.

Check her out here

Also, coincidentally, she has a piece in The Conversation on a related yet different topic.

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Empty vessel and strategic disruptor?

I have been trying to make sense out of the shifts in US foreign policy under Trump 2.0. I understand his admiration for authoritarians and supination to Putin (which I believe is because Putin has dirt on him), and I also understand the much vaunted “transactional” nature of his view of foreign relations. Moreover, it is clear that he is a racist (remember his comments about “s***hole countries”), so he has a dim view of soft power projection into the underdeveloped world and the benefits of global engagement. His neo-isolationism is apparent, although it doe not fit well with his delusional designs on Canada, Greenland, Gaza and the Panama Canal Zone (I am of the opinion that his medications have been changed in order to make him speak in a more moderate monotone even if his message remains as deranged as always) . In any case even if I can reconcile all of this, the open move to side with Russia in its conflict with Ukraine and his attacks on erstwhile European allies are perplexing on the face of it. But perhaps there is a method to his madness, so let me try to unpack things. Let’s be clear: this may be a stretch but it is within the realm of the possible given what has happened so far.

First, let start with some background. Trump is an empty intellectual vessel. He has no foundational morals or guiding principles other than making money and garnering power. That makes him non-ideological as well as transactional in his worldview. Remember that at its core ideology is a coherent set of value principles that organise reality over time and specify the relationship between the imaginary (what could happen) and the real (what is happening). That is important because as a non-ideological empty intellectual vessel Trump is susceptible to whatever advice and suggestions appeal to him in the moment. Scapegoat immigrants? Sure. Demonize transgender people? Why not? Rename geographic locations? Sounds good. Embrace Christian nationalism? Halleluja! Champion guns, state’s rights and NASCAR? Dang right! And so forth. There is nothing too petty or trite that he will not stoop to when it comes to patriotic symbolism if it advances his interests under the pretext of making the US great “again.” The ghost whisperers who surround him know this and play upon his vainglorious ignorance.

But there is a serious side to his intellectual influences. They come in the form of disruption or chaos theory, on the one hand, and neo-reactionaryism on the other.

Chaos or disruption theory posits that stagnated status quo’s can only be “broken” by chaos or a disruptive force. That force may come in the form of “disruptors” who take advantage of chaos to impose a new order of things. The origins of this ideological belief in chaos or disruption theory come from many sources but include Milton Friedman, the father of neoliberalism, who justified his support for the 1973 Chilean coup and a number of other pro-market dictatorial interventions as the only means of breaking the hold of welfare statism on national economies. The depth of the crisis determined the extent of the disruption, be they coups in Latin America, Southern Europe and East/Southeast Asia or socially dislocating macroeconomic reform done under emergency in places like NZ and England. A political disruption was necessary in any event in order to break the extant economic model via chaotic reform.

Chaos and disruption theory see the moment of crisis as a circuit breaker, a means to end cycles of social decay and vicious circles of bureaucratic parasitism and clientelistic rent-seeking. Under proper guidance by “disruptors” as change agents, societies can re-emerge from the ashes of the old order better and stronger than before.

Reports have circulated for years that Trump embraces his own form of chaos theory in which he pits his underlings against each other in order to shake out the ideas that best suit him. Although he seems to have toned things down when compared to his first presidency and what may have worked for him in the private sector may not work in the public sector (as his first presidency appears to have proven), it is possible that his advisors believe that he will welcome the “disruptor” role where he makes order out of chaos. This may be psychological manipulation by his advisors but if so it seems to be working.

That s where the second ideological strand poured into Trump’s empty vessel comes into play. Neo-reactionism holds that democracy no longer is fit for purpose. The main reason is that political equality 1) allows stupid people a vote equal to that of smart people, which in turn leads to 2) inefficient and self-destructive economic and social outcomes because elected officials and the bureaucracies that they oversee will always seek to accomodate the interests of the stupid majority over those of the enlightened few. Because of this, the ranks of the non-productive beneficiary classes grows while the entrepreneurial class shrinks, in what is seen as a form of reverse social Darwinism with a twist. Adding to the mix “progressive” policies like refugee and other migrant admissions from low IQ societies and providing social services that individuals otherwise would have to provide for themselves further dilutes the gene pool and perpetuates a cycle of dependency in the ever-expanding mass of dumb rent-seeking parasites.

The solution lies in creating an elected oligarchy that makes popular appeals and promises but which rules in a beneficent authoritarian manner, as in, for example, Singapore. It is they who know what is best for the polity and it is they who define what is in the public interest and public good. Elections are seen simply in instrumental terms, as a means of securing and maintaining power that also serve as legitimating devices for their rule.

It does not matter if this view of society and governance is a grotesque caricature of what is really happening in the US. It is what the technology entrepreneurs known as “tech bros” imagine and therefore believe it to be. Led by Elon Musk, it is the ideology of this sub-strata of wealth-horders that has gotten inside of Trump’s head. As we currently see playing out, via DOGE they are now in the first phase of implementing their vision of how the federal government should look and act.

Against that backdrop, the question then turns to US foreign policy and the dramatic shifts in it. Again, this may be a stretch but what could be happening is that the US is embarking on a foreign policy disruption and reset of its own that is designed to realign the international system that followed the Cold War. It could be that Trump (or, more precisely, his foreign policy advisors) are looking down the road and envision a new world system that, transaction by transaction and incremental reneging on the rules of the old international “liberal” order, replaces the emerging and somewhat chaotic multipolar/polyarchic/multiplex networks of the last 20 years. They are not interested in re-hashing the causes of US decline and the rise of the Global South or the ways in which international relations are no longer an exclusively State-centric and -dominated affair. They are not interested in the international liberal order. They want to re-assert US primacy after a period of challenge.

For that to happen it appears that Trump 2.0 has taken inspiration from the Cold War and is attempting to re-invent a tri-polar international system, The idea is to re-align with Russia because of shared Western traditional values and pull it away from China’s growing sphere of influence. The Russian hinge will be what balances the US-PRC relationship, giving Russia a sense of restored prestige and the US a better sense of security vis a vis the PRC.

Here again, Trump and his advisors are deeply racist in their views (think Stephen Miller) and have an abiding fear and loathing of the Chinese. The US has made clear that it wants to turn away from Europe and the Middle East and concentrate strategic attention on curtailing Chinese power expansion in Asia and elsewhere. The PRC is already mentioned–and has been for a while–as the US’s main “peer competitor,” and US war planning is heavily focused on gaming contingency scenarios versus the PRC. Trump’s attempt at territorial expansion into Greenland, the Panama Canal Zone and even (however farcical) Canada is designed to create a US lebensraum equivalent to the notion of Russian buffer states in which its interests are undisputed and inviolate (which is what Russia claims about Ukraine).

A rapprochement with Russia could tip the geopolitical scales in US favour by moving Moscow away from China’s embrace while forcing Europeans to accept new Russian-drawn buffer border boundaries and stop their security dependency and corresponding rent-seeking from the US. The US can then focus on its Asian partnerships and military planning versus the PRC, and Russia is restored, thanks to US recognition, to the community of nations (where it already enjoys support in the Global South, especially in Africa) whether the Europeans like it or not (some do, most don`t).

That is where the rubber hits the road. The move will involve sacrificing Ukraine in some form or another, be that a land-for-peace swap or some other type of security guarantees. No matter what, Ukraine will come out the lesser for its troubles and Russia will be rewarded for its aggression. But that is no longer the point because the bigger picture is what is more important in Trump’s eyes, especially if he can secure rare mineral concession rights in both Ukraine and Russia (as has been discussed lately, something that demonstrates the power of US coercive diplomacy versus Ukraine and the power of Russian persuasive diplomacy versus the US). The stagnation of the Ruso-Ukrainian war invites the application of disruption theory to the conflict, even if there will be significant collateral damage to Ukraine and US-European relations as a result.

This gambit also rests on the assumption that Russia is an honest actor and will in fact prefer to normalize relations with the US while distancing itself from the PRC (since it would be part of any negotiations to betray Ukraine unless Trump is completely owned by Putin). That may be a mistaken belief, which would make all the claims about Trump’s ability to play “three dimensional chess” a bit of a pipe dream. It also discounts the PRC reaction, which also would be a mistake.

The bottom line is that precisely because Trump is an empty intellectual and ideological vessel he is more susceptible than other presidents to the suggestions of his advisors, especially when they appeal to his narcissism and bigotry. Chaos or disruption theory-derived policy recommendations are a good way of doing so, especially when coupled with the suggestion that he is the only “King” (remember last week’s White House-generated Time Magazine cover) capable of imposing a new order both at home and abroad. If that advice is coupled with suggestions that the pivot towards Russia could earn him the Nobel Peace Prize (something that he has repeatedly said that he thinks that he deserves), then the neoreactionary ideological project will have started to bear fruit in terms of US foreign relations.

Judging from what is going on in terms of changes to US domestic policy under Trump 2.0, the strategic shift in foreign policy appears to be just one side of the disruptor’s coin. But is that a coin secured in hand by a long-term strategic plan or one that is simply being tossed to see how it lands?

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About that PLAN flotilla in the Tasman Sea.

Here are some thoughts about the hysteria surrounding a Chinese Peoples Liberation Army Navy (PLAN) flotilla conducting freedom of navigation exercises in the Tasman Sea, including live fire drills.

1) The flotilla has been tracked for over a week by New Zealand and Australian forces. The tracking began when the flotilla was well NE of the Australian northeastern coast.

HMAS Arunta shadowing PLAN vessels in the Tasman Sea. Source: ADF handout/AFP.

2) The flotilla is operating in accordance with international law and maritime regulations regarding military operations in international waters.

3) The flotilla has no air cover deployed with it and therefore no effective means to defend itself against a coordinated air assault. It is basically a sitting duck for Australian air defences and even NZDF air defences (because the NZDF P8s and Seasprite helicopters carry air to surface munitions as well as torpedos).

4) The flotilla may have a submarine deployed with it.

5) The presence of the PLAN ships in the Tasman is a form of military diplomacy, showing the flag in a distant body of water as a demonstration of blue water power projection capabilities.

6) The PLAN freedom of navigation (FON) exercise in the Tasman Sea may well be a response to a joint Australian-New Zealand FON exercise in the Taiwan Strait in September 2024. Those waters are far more disputed than the Tasman Sea (because the PRC claims them as territorial waters), so the PRC objected to the exercise at the time and declared that it would formulate an appropriate response in due course. This could be it. But the PLAN vessels are far from Australian and NZ territorial waters, so the legality of their presence in open seas is indisputable.

7) The presence of the PLAN flotilla conducting live fire drills (5 conventional surface to surface rounds fired from the Type 055 destroyer Zunyi’s main gun at a floating target, as observed by personnel on the HMNZS Te Kaha) and other exercises is an excellent opportunity for Australian and New Zealand to hone their naval counter-force capabilities, including tactical signals and technical intelligence intercepts and collection from the flotilla. If a submarine is involved then the Antipodean allies can refine their anti-submarine warfare (ASW) capabilities as well, which is exactly what their P8 patrol and ASW aircraft are designed to do. As it stands, Australia and NZ are using air and surface platforms to shadow the PLAN boats.

8) Much has been made about the lack of warning given by the PLAN before the live fire drills. Such warnings are a courtesy, not part of any formal protocol. They are usually issued 12+ hours prior to the drill in order for interested parties such as civilian aviation and maritime operators to plan accordingly and clear away from the target area. The PLAN gave 15 minute warnings, forcing a few planes to adjust course away from the no-fly zone. That was perhaps rude as far as courtesy goes, but nothing more.

9) Most of the hysteria about the flotilla is led by Australian opposition figures in politics and media in an election year. Most of the alarm in New Zealand is led by Sinophobic media commentators or people with little knowledge of military affairs or the nuances of military diplomacy, much less naval operations (especially in NZ). All of them want to tie the exercises to broader Chinese moves in the Southwest Pacific such as the recent bilateral strategic agreement between the PRC and the Cook Islands. For their part, Ministry of Defense officials on both sides have been muted in their response and military officials have been largely silent (presumably because they know what is really happening).

10) It is clear that the PRC is “flexing” its military might in more and more distant places, as any Great Power would do. But not every display of power capability constitutes an imminent threat. Should Australia and NZ pay attention to the exercise? Absolutely, especially because it can be used as a learning tool for their respective naval counter-force platforms. Should they feel threatened by the exercises? Absolutely not. Claims of the exercise posing a threat, being a provocation or an act of intimidation by the PRC betray the biases of those who make such claims. The PRC is just doing what Great Powers do, and if anything it is reminding others of its capabilities while testing them in front of foreign eyes.

Sailors aboard an Australian navy ship look out at Chinese vessels on February 13, picture by the Australian Defence Force

Sailors aboard the HMAS Arunta observe the PLAN flotilla in the Tasman Sea. Source; AFD handout/AFP

11) In the end, if the US, UK, French or other Western navies conducted the exact same exercise in the Tasman Sea, there would be little controversy about it. Because it is the PLAN, however, anti-PRC elements in Australia and New Zealand want to use the occasion to stir up trouble in pursuit of their own agendas. But the truth is that the PRC is not designated as an adversary or hostile state by either Australia or New Zealand, who in fact enjoy largely cordial and beneficial trade relations with the Asian giant. Although there have been moments of friction between Australia and New Zealand, on one hand, and the PRC on the other over a number of political, diplomatic and military strategic issues, and the PRC remains a major concern for the Australian and NZ security communities for a number of reasons, none of this justifies turning what is a relatively small display of power projection into an international incident.

Everyone needs to clam down and relax.

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A presidential crypto pump-and-dump.

This may be rhetorical but here the question goes: did any of you invest in the $Libra memecoin endorsed and backed by Argentine president and darling of the global Right Javier Milei (who admitted to being paid a fee for his promotion of the token)? You know, the one that soared above $4 billion in worth after his Friday night announcement and then collapsed entirely within 24 hours after the original memecoin sponsors (3-4 in number on a cryptocurrency web site) cashed in their stake, leaving dozens of investors with unsecured million dollar losses in what was basically a crypto Ponzi scheme? Hmm.

When confronted Milei said that investment is about risk and people should have gauged the level of risk exposure that they could sustain. He would not say what his fee was or whether he was part of the original memecoin sponsor group (others in the know suggest that he was). He disavowed any responsibility for pumping up investor interest on Fridaay night via social media (you can imagine whose platform was used) before the token was dumped by the sponsors, in what is known in the crypto world as a rug-pull.

In his defence some have pointed to the fact that memecoins are like figurines or troll dolls: they have no intrinsic value and are purchased just for fun. But Milei pushed $Libra as a genuine investment, one that could presumably help small and medium sized Argentine businesses by allowing them to raise funds at low investment costs (the buy-in of $Libra started at USD$.1.00). Less than 12 hours later he deleted his original post on social media.

The fact that the sitting Argentine president was promoting a crypto currency of any sort–or any other financial asset or scheme–seems dodgy at the very least. That he was promoting a rug-pull pump-and-dump as a legitimate investment opportunity is Trump-level criminally audacious.

But maybe that was the play all along? Phrased differently and to pervert an honorable saying, the NZ Special Air Services (SAS) have as a motto “he who dares, wins.” Perhaps Trump, Musk and Miley have their own version of that. Does it not occur to anyone that the moral character of all of these people playing on the public trust is the same–that they are a kinship of immoral miscreant sociopaths? In NZ, is not David Seymour not the same?

Milei îs now being investigated for financial crimes and is facing the possibility of impeachment (juicio politico) over the scheme. But this is Argentina we are talking about so it is anyone’s guess how justice will be served.

When he said that he was going to take a chainsaw to public finances and remove “the caste” from politics perhaps he meant something a bit different than cleaning up the public sector under conditions of austerity. Maybe he just meant that the nature of official mendacity and corruption, and the beneficiaries of it, would simply change with him in office, not that it would go away entirely. I tend to believe, having been raised and socialized in that country, that the latter is the case.

You can read up on the scam details here.

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The limits of over-reach.

Here is a scenario, but first a broad brush-painted historical parallel.

Hitler and the Nazis could well have accomplished everything that they wanted to do within German borders, including exterminating Jews, so long as they confined their ambitious to Germany itself. After all, the world pretty much sat and watched as the Nazi pogroms unfolded in the late 1930s. But Hitler never intended to confine himself to Germany and decided to attack his neighbours simultaneously, on multiple fronts East, West, North and South. This came against the advice of his generals, who believed that his imperialistic war-mongering should happen sequentially and that Germany should not fight the USSR until it had conquered Europe first, replenished with pillaged resources, and then reorganised its forces for the move East. They also advised that Germany should also avoid tangling with the US, which had pro-Nazi sympathisers in high places (like Charles Lindbergh) and was leaning towards neutrality in spite of FDR’s support for the UK.

Hitler ignored the advice and attacked in every direction, got bogged down in the Soviet winter, drew in the US in by attacking US shipping ferrying supplies to the UK, and wound up stretching his forces in North Africa, the entire Eastern front into Ukraine and the North Mediterranean states, the Scandinavian Peninsula and the UK itself. In other words, he bit off too much in one chew and wound up paying the price for his over-reach.

Hitler did what he did because he could, thanks in part to the 1933 Enabling Law that superseded all other German laws and allowed him carte blanche to pursue his delusions. That proved to be his undoing because his ambition was not matched by his strategic acumen and resources when confronted by an armed alliance of adversaries.

A version of this may be what is unfolding in the US. Using the cover of broad Executive Powers, Musk, Trump and their minions are throwing everything at the kitchen wall in order to see what sticks. They are breaking domestic and international norms and conventions pursuant to the neo-reactionary “disruptor” and “chaos” theories propelling the US techno-authoritarian Right. They want to dismantle the US federal State, including the systems of checks and balances embodied in the three branches of government, subordinating all policy to the dictates of an uber-powerful Executive Branch. In this view the Legislature and Judiciary serve as rubber stamp legitimating devices for Executive rule. Many of those in the Musk-lead DOGE teams are subscribers to this ideology.

At the same time the new oligarchs want to re-make the International order as well as interfere in the domestic politics of other liberal democracies. Musk openly campaigns for the German far-Right AfD in this year’s elections, he and Trump both celebrate neo-fascists like Viktor Urban in Hungry and Javier Milei in Argentina, Trump utters delusional desires to “make” Canada the 51st State, forcibly regain control of the Panama Canal, annex Greenland, turn Gaza into a breach resort complex and eliminate international institutions like the World Trade Organization and even NATO if it does not do what he says. He imposes sanctions on the International Criminal Court, slaps sanctions on South Africa for land take-overs and because it took a case of genocide against Israel in the ICC, doubles down on his support for Netanyahu’s ethnic cleansing campaign against Palestinians and is poised to sell-out Ukraine by using the threat of an aid cut-off to force the Ukrainians to cede sovereignty to Russia over all of their territory east of the Donbas River (and Crimea). He even unilaterally renames the Gulf of Mexico as the Gulf of America in a teenaged display of symbolic posturing that ignores the fact that renaming the Gulf has no standing in international law and “America” is a term that refers to the North, Central and South land masses of the Western Hemisphere–i.e., it is not exclusive to or propriety of the United States.

Trump wants to dismantle the globalised system of trade by using tariffs as a weapon as well as leverage, “punishing” nations for non-trade as well as trade issues because of their perceived dependence on the US market. This is evident in the tariffs (briefly) imposed on Canada, Mexico and Colombia over issues of immigration and re-patriation of US deportees.

In other words, Trump 2.0 is about redoing the world order in his preferred image, doing everything more or less at once. It as if Trump, Musk and their Project 2025 foot soldiers believe in a reinterpreted version of “shock and awe:” the audacity and speed of the multipronged attack on everything will cause opponents to be paralyzed by the move and therefore will be unable to resist it. That includes extending cultural wars by taking over the Kennedy Center for the Arts (a global institution) because he does not like the type of “culture” (read: African American) that is presented there and he wants to replace the Center’s repertoire with more “appropriate” (read: Anglo-Saxon) offerings. The assault on the liberal institutional order (at home and abroad), in other words, is holistic and universal in nature.

Trump’s advisors are even talking about ignoring court orders barring some of their actions, setting up a constitutional crisis scenario that they believe they will win in the current Supreme Court.

I am sure that Musk/Trump can get away with a fair few of these disruptions, but am not certain that they can get away with all of them. They may have more success on the domestic rather than the international front given the power dynamics in each arena. In any event they do not seem to have thought much about the ripple effect responses to their moves, specifically the blowback that might ensue.

This is where the Nazi analogy applies. It could be that Musk and Trump have also bitten more than they can chew. They may have Project 2025 as their road map, but even maps do not always get the weather right, or accurately predict the mood of locals encountered along the way to wherever one proposes to go. That could well be–and it is my hope that it is–the cause of their undoing. Overreach, egos, hubris and the unexpected detours around and obstacles presented by foreign and domestic actors just might upset their best laid plans.

That brings up another possibility. Trump’s remarks in recent weeks are descending into senescence and caducity. His dotage is on daily public display. Only his medications have changed. He is more subdued than during the campaign but no less mad. He leaves the ranting and raving to Musk, who only truly listens to the fairies in his ear.

But it is possible that there are ghost whisperers in Trump’s ear as well (Stephen Miller, perhaps), who deliberately plant preposterous ideas in his feeble head and egg him on to pursue them. In the measure that he does so and begins to approach the red-line of obvious derangement, then perhaps the stage is being set from within by Musk and other oligarchs for a 25th Amendment move to unseat him in favour of JD Vance, a far more dangerous member of the techbro puppet masters’ cabal. Remember that most of Trump’s cabinet are billionaires and millionaires and only Cabinet can invoke the 25th Amendment.

Vance has incentive to support this play because Trump (foolishly, IMO) has publicly stated that he does not see Vance as his successor and may even run for a third term. That is not want the techbro overlords wanted to hear, so they may have to move against Trump sooner rather than later if they want to impose their oligarchical vision on the US and world. An impeachment would be futile given Congress’s make-up and Trump’s two-time wins over his Congressional opponents. A third try is a non-starter and would take too long anyway. Short of death (that has been suggested) the 25th Amendment is the only way to remove him.

It at that point that I hope that things will start to unravel for them. It is hard to say what the MAGA-dominated Congress will do if laws are flouted on a wholesale basis and constituents begin to complain about the negative impact of DOGE cost-cutting on federal programs. But one thing is certain, chaos begets chaos (because chaos is not synonymous with techbro libertarians’ dreams of anarchy) and disruption for disruption’s sake may not result in an improved socio-economic and political order. Those are some of the “unknown unknowns” that the neo-con Donald Rumsfeld used to talk about.

In other words, vamos a ver–we shall see.

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Unserious People.

In past times a person was considered “unserious” or “not a serious” person if they failed to grasp, behave and speak according to the solemnity of the context in which they were located. For example a serious person does not audibly pass gas at Church, or yell “gun” at a playground, say “sorry, just kidding” at a marriage ceremony, yelling that ” the lid is moving” at a funeral internment, put a whoopee cushion on the Prime Minister’s seat or try to barge into a plane cockpit just for laughs or as a prank. That is for comedians and idiots to do.

“Serious” in this old-fashioned sense means that a person knows the context in which s/he is acting and takes that context, well, seriously when behaving and speaking within it. That includes considerations of decorum, audience impressions, immediate and future consequences, the weight of tradition and importance of standards of comportment. Sometimes are not the time for a piss-take. The gravity of the moment dictates the degree of seriousness that should be taken.

Fast forward to the Oval Office press conference held by Musk and Trump this week. Trump sat hunched over the Resolute Desk while Musk, wearing a MAGA baseball cap and a t-shirt and accompanied by his four year old (and restless) son, pontificated about DOGE finding all sorts of dodgy doings at various government agencies. He lectured on what he thinks democracy is, spoke of mandates and unelected bureaucrats, smeared judges as activists and questioned their independence, asked why spending taxpayer money on foreign aid is considered a good thing, and spouted assorted other rubbish like some pimply-faced high school Ann Rand-inspired debate geek. On the other side of the desk from where Musk stood was a map depicting the “Gulf of America” just in case the media (including foreign press) did not get the point of Trump’s unilateral name change of that particular body of water. For at least 20 minutes the assembled press sat and watched in silence at the spectacle of Musk pontificating and Trump interjecting, perhaps collectively wondering why Musk was giving a joint press conference in the Oval Office in the first place. Everything after that was circus side-show gravy.

His son puttered around and behind the Resolute Desk, including picking his nose and wiping his nose-picking finger on the Resolute Desk, squirmed at his father’s feet and got hoisted onto Musk’s shoulders, where he played with the hat. The kid, whose name is “X,” also told Trump that he was not the president and that he should “shut the f**k up” (this was picked up by a hot mike and has now gone viral). Make of that what you will.

Meanwhile, outside the Oval Office windows it snowed gently on the South Lawn in what was the only concession to seriousness, serenity and reflection in that moment.

This is why Musk and Trump are not serious people. They may be using their respective positions and powers to pursue their overlapping agendas and interests, but even those agendas–annex Greenland and Canada, ethnically cleanse Gaza in order to make it beachfront real estate, re-occupy the Panama Canal, scrub “woke” language and information from government websites, kill off entire agencies and fire thousands of public servants and yes, rename the Gulf of Mexico the “Gulf of America” (seriously?)–are not the acts of truly serious people.

These are the acts of delusional madmen intoxicated by their own egos and unconstrained by what should be the normal checks and balances of a stable and mature democracy, including the protections offered by the rule of law and US Constitution. Instead, if you add in the GOP-controlled two Houses of Congress, what you have is a three-ring political circus masquerading as a federal democratic Republic.

The tragedy may be that although they are not serious in the pure sense of that term, they are all the more dangerous because of it. The analogies about destruction done and chaos legacies left by these criminal bigots write themselves, but the consequences will be worn by serious and unserious people alike in the years, perhaps decades ahead.

Thank goodness my second son will spend his teenage years in Aotearoa, which is a place that, some exceptions and US influences notwithstanding, still takes governance and policy-making pretty darn seriously.

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On the DOGE data sweep.

Among the many other problems associated with Musk/DOGE sending a fleet of teenage and twenty-something cultists to remove, copy and appropriate federal records like social security, medicaid and other supposedly protected data is the fact that the youngsters doing the data-removal, copying and security protocol and filter code over-writing have not been properly security vetted and have at best been temporarily deputised into public service to do the retrieval tasks. They are loyal to Musk first, second and third and MAGA/Trump fourth. They are not loyal to the US public whose data they have now appropriated. This means that all that data collected is potentially being compromised or at risk of wider exposure and can even be data-mined, gifted or sold off to third parties for purposes other than public sector auditing or transparency.

That is pretty mind-boggling. As someone who held a S/TS/SCI clearance before leaving the US for a better life overseas, I had to undergo two polygraph and background checks conducted by the Defence Intelligence Agency before being granted the clearances, and upon leaving the security community I was placed under a 20 year gag order on what I had seen/done, with any material that I wanted to use after the 20 year gag window period ended subject to DoD censoring and editing (should I have decided to write or speak about topics that included using classified materials). I say this because I handled material that was just pertinent to my official duties, not wide swathes of data about everything under the sun, so the lack of security vetting of Musk’s minions is, again, astonishingly wrong.

This has the potential to end very badly, not just for the US government or what will be left of it after this reckless DOGE wrecking ball is done with it, but for the millions of people whose data can now be manipulated and used for untoward ends. We must remember that Musk is a dishonest and unscrupulous person, his cult minions and other “techbros” subscribe to variant of an anti-democratic and Social Darwinistic ideology known as “neoreactionism,” and MAGA acolytes like Stephen Miller, Pete Hegseth, Tulsi Gabbard, Pam Biondi and the authors of Project 2025 now installed in the corridors of power are all too happy to use any means to pursue the Trump/Musk agenda. Since all of these people are disreputable curs, none can be trusted to prevent misuse of personal confidential data for revenge, profit or other non-accountable purposes.

The questions then become: who benefits from the data-grabbing move? The GOP? Putin? The techbro oligarchy? What is the end game?

Whatever it is, it is a disaster in the making.