The horizon is not so far as we can see, but as far as we can imagine

Author: Sean Paul Kelley Page 1 of 8

'89-'93 BA History, Houston
'95-'07 Morgan Stanley, Associate Vice President
'99-'02 MS International Relations and Economic Development, Saint Mary's University
'07-'13 International Software Sales Manager, Singapore
'13-'16 MA, History, Thesis on Ancient Silk Road City of Merv, UTSA
Kelley lives in San Antonio, Texas.

Your Late Friday Dose of Crap Economic News

Good heavens the economic bad news is piling up like a bad car wreck. In that case, let’s do some serious rubberknecking, folks, because there is a lot of fucked up shit to observe.

We begin with widepsread reports of large institutional investors (hedge funds, investment banks, boutique investment firms) selling off services stocks like leisure, luxury, hotels, and some retail outlets, like Home Depot. That’s a lot of cash leaving equities. But for what safe harbor? It certainly isn’t private credit, like Blackrock which lost 100% on one investment. UBS also lost 100% on another private credit deal. Now, Blackrock lost $150 million on the deal, which for Blackrock is naught but a silly little rounding error, but as they say, $150 million here, a $150 million there and pretty soon you’re talking real money. That cash won’t go to US treasuries, that’s for damn sure. Seriously, who’d invest in US dollars? I wouldn’t fuck a US treasury with Magic Johnson’s dick. Yeah, I said it.

Want news even more ominous: JP Morgan Chase, Goldman Sachs and my alma mater (for full disclosure) Morgan Stanley were the lead underwriters of a $1 billion increase in AI firm Coreweave’s $2.5 billion revolving credit facility. The term sheet expands the maturity date from 2028 to 2029. Just a year? Did they attempt any due dililgence on Coreweave’s burn rate? It’s gotta be a fuckton fast. The equipment depreciates faster than the time between now and when the loan reaches maturity. No way Coreweave’s earning increase that rapidly. Apple Coreweave certainly is not. Apple’s so profitable it prints money. I mean, seriosuly, Christ on a popsicle stick. Where’s the due diligence? Where are the regulators? I know, I know.

But it gets worse: On Nov. 4, Meta agreed to an off-balance sheet $27 billion loan (also known as a Special Purpose Entity, henceforth SPE) from Blue Owl Capital (OBCD). This is financial shenanigans and identical to the accounting legerdemain that led to Enron’s ruin. Pay attention people. This is getting ugly. Enron butt-hurt ugly is how bad this is starting to look. Let me break this down for you, in case you forgot. An SPE is off-balance sheet. That means the company is under no obligation to report it on its SEC required filings. Get it now? Investors have absolutely no way of knowing how much off-balance sheet debt a particular company has. SPEs=bad ju-ju.

Moreover, Oracle now has a debt-to-equity ratio approaching 500% and that’s just what’s on the their balance sheet. There is literally no way to know if Oracle has any SPE loans outstanding. My bet: they do.

Speaking of: JP Morgan notes AI linked debt now accounts for 14% of its investment grade corporate index (CGI IG), and now surpasses US commercial banks as the dominant sector. Apparently this means that not only are AI firms taking on loads of traditionally financed debt, but they are also taking on unknown and UNREPORTED SPE debt to finance AI hyper-scaling. No wonder the main character of the (mostly) true movie, The Big Short, Michael Burry, is closing his fund. He shorted Palntir and Nvidia. Sadly, Burry forgot John Maynard Keynes keen paroemia (from the ancient Greek meaning maxim or proverb), when he lost all his money in the 1929 crash: “markets can remain irrational longer than you can remain solvent.”

Also: beware neologisms created on Wall Street. Today’s new phrase is ‘data center credit.’ Sounds positive, aye? It ain’t. It’s a bullshit phrase referring to debt financed for the AI sector by private credit shops. Tons and tons of bullshit, yes?

There is also news that insurers are placing more than 50% of assets needed to guarantee/backstop annuities and life insurance policies into private credit shops. This is a terrible idea. Annuities are insurance policies designed to pay out in the event you live too long. Life insurance is, well, insurance against not living long enough.

Oil prices are soft/down to flat. Texas rig counts are down again this month, rig counts are considered a leading economic indicator.

And most ominously of all, just this evening the head of the NY Fed convened an emergency meeting of bank heads to discuss one of the Feds key lending facilities. I’m almost certain this is in response to the rising private credit loses and how they resemble Bear Stearns blowing up two subprime hedge-funds in 2007, the precise moment the 2008 financial crisis began.

If you need links I will provide them, but it is just as easy to google everything I’ve written here. It’s all true, except for when I opine. And yes, when it comes to discussing economic news I have a seriosuly uncontrollable potty mouth. I got it while working on the floor of the AMEX as an arbitrage clerk back when we used fractions. Yup, I’m that fucking old.

Finally, a postitive thought, in a manner of speaking. The only thing the equity markets have going in their favor right now is this: the almost impossible to prevent or deny Christmas rally. It’s damn near as reliable as the Monsoons.

So, if the econ shit does hit the fan, it’ll happen after January 1.

On the Necessity of Bearing Witness

Some stories are too difficult to tell in the hours, days or weeks after you experience them. Over time, however, they fester; begging to be told; becoming more insistent as the months and years pass. Some even begin to haunt a writer more and more, day by day until the tale must be told. Last night’s nightmare compels me to relate my tale now.

In late November of 2008 my bus from Vietnam to Siem Reap developed issues and required a stopover in the Cambodian capital, Phnom Penh. It had been a sleeper bus so we were told we’d have a full day in the capital and the bus would leave the next day. Traveling plans like war plans rarely survive contact with the road. Growing ever more patient with detours, I inspected my guidebook, back when using Lonely Planet’s was a thing, and planned my day.

Let me be clear: I am no fan of war or atrocity porn, but I do understand its allure, although I am, thankfully, largely immune to it. On the other hand and possibly more importantly, I also recognize and empathize with the need to preserve places where truly reprehensible atrocities of human history occurred. They are to be preserved that future generations witness, feel, and have the opportunity to comprehend even the smallest portion of the enormity that took place underfoot. Maybe, just maybe, such lessons might be passed on to others who will never be able, or be allowed, to experience such hallowed ground.

Many practicing and secular Jews make pilgrimages to sites where the Shoah occurred. I’ve inquired why and each query has been answered universally. They describe a compulsion to bear witness, to honor the fallen, that they remain alive in living memory. Hard to argue with. Because the Armenian genocide occurred in a more dispersed manner Armenian pilgrims face much more significant hurdles. But, when possible Armenians likewise honor their ancestors. I cannot speak to what happened in Rwanda in 1994. I am aware of such places in Guatemala, heard in faint whispers where no gringos are welcome, nor visit, quite understandably.

How to explain how my choices that day were made? I may have only been 13 years-old but the 1984 movie ‘the Killing Fields’ left me with a powerful impression. An impression I recalled that November day and I felt oddly, inexplicably, duty-bound to see what I did not want to see. The killing fields were not my first stop that day however. That honor (poor word choice, I know) fell to the former interrogation and torture center of the Pol Pot Regime’s perceived enemies Tuol Sleng. Here I endured, what I can only describe as a feeling of almost unbearable witness to sickening crimes.

Two, and only two, examples need suffice.

First, in one room of the prison sat a metal frame bed where regime “enemies” were restrained. Once restrained, electrical leads were attached to the frame. Most expired for no reason at all. Sometimes the guards just left the room to have a smoke. At others they left to eat lunch. But most often the guards let them die because they knew no questions they might ask would be satisfactorily answered. They knew they were killing regular people, completely innocent.

The second example is this photo, a photo that haunts me to this day. The walls of Tuol Sleng are papered with them, all of them innocent and to this day they go unnamed. If you cannot feel the fear radiating from this photo you are devoid of the empathy gene.

In all I spent about two hours wandering through Tuol Sleng. I will never return.

But, my day was far from over. After walking out of Tuol Sleng I hailed a tuk-tuk and asked him to take me to the killing fields, which are about two kilometers outside of Phnom Penh. What I recall most vividly about this horrifying place was the care I had to take where I walked. (NOTE: click on the following links at your own risk.) The ground was uneven and I was told at the entrance to stay on the high ground, as the sunken spaces were mass graves. Christ, I shudder visualizing it even now. Then there were what I can only describe as large glass cases, best suited as terrariums for large pythons or boa constrictors. Each case was filled with one of the following: femurs of the dead, human ulnae and radii, and hip bones. Piling Pelion on top of Ossa, mason jars filled with human teeth sat atop each glass case. Finally, the Cambodians being Buddhists made a four story glass stupa—a Buddhist reliquary—filled with human skulls.

Towards the end of my increasingly heavy-hearted meanderings I noted crimson rays filling the sky. I hailed a cab to my hotel, shambled up to my room, slouched off my backpack and sank onto the bed, sighing deeply from emotional exhaustion. I didn’t know what I felt—except despair. I walked downstairs and asked where the nearest bar was. Now, I am not one to drink alone; but, I confess that I was incapable of dealing with what I was feeling at the time. So, I sat down, alone and in silence and got drunk. Not tipsy, but drunk. I barely recall making it back to my room, but I did. The last thing I recall thinking before I passed out was, “I’m going to be haunted by this for a long time.”

The next morning after dreamless sleep, no ghosts woke me up. All that greeted me were overcast skies, a wicked hangover and my noon bus ticket to Seam Reap.

The Evolution of Richard Bruce Cheney’s Foreign Policy Ideology

~by Sean Paul Kelley

Former Vice President Richard Bruce Cheney, the human manifestation of the US Deep State, died four days ago.

Good riddance.

The man was a war criminal. He is also the man singularly responsible for America’s accelerating international decline. His policies effected the death of thousands of American soldiers and Marines, and the death of hundreds of thousands, perhaps millions of innocents. Just a few days ago Col. Larry Wilkerson, Gen. Colin Powell’s outspoken chief of staff, in a video all should watch, unequivocally called him a war criminal.

If there is a hell, he’s there.

If there is such a thing as reincarnation he’ll soon return as a cockroach. But I’m not here to discuss his afterlife.

It’s the evolution of his ideology that I want to consider.

Cheney was President Ford’s Chief of Staff from 1975-77. While Chief of Staff he engineered Donald Rumsfeld’s appointment as the youngest SecDef ever. He did so on the basis that Rumsfeld would act as a successful counterweight to Kissinger, whose power and whose influence over President Ford was almost total in the foreign policy realm. All his life Rumsfeld cultivated a persona of intelligence and wisdom, but ultimately he was an incompetent boob, losing himself in detail and missing the big picture, always. Sure, his comment about known-unknowns was actually insightful, it was deriviative of a better thinker than he.

Rumsfeld’s two tenures as SecDef were both failures. But back in the 70s he and Cheney stood no chance against Kissinger. They lost virtually all their foreign policy battles with the maestro. While National Security Advisor and then Secretary of State Kissinger dominated American foreign policy-making like no other Secretary of State since John Quincy Adams and like no other since. Kissinger was a briliant man, cunning bureaucratic infighter and skilled leaker. He was also an extremely self-serving memoirist.

But, like Kissinger or not, when in office he co-created a diplomatic framework with Nixon and Chou Enlai that lasts in many respects to this day. They built something few men ever accomplish and it deserves respect and an urgent reappraisal. Kissinger promoted detente, linkage, triangular diplomacy and most importantly prudence in the conduct of US foreign policy. Yes, I realize the irony of using prudence to describe Kissingerian foreign policy, but it’s true. Taking the long view it’s hard to deny, especially when comparing his diplomacy with every SecState that came after him. Try to deny it. You can’t.

The world order Kissinger and Nixon created between 1969-74, endured for decades. But, as Nixon said, “in politics, nothing lasts.” Their order lasted until it was wrecked by a resentful Dick Cheney and his neocon acolytes during the presidency of Bush II. While Kissinger and Nixon engineered a time of great global stability, whatever you think of their politics or their actions while in office, they laid the foundations for the end of the Cold War, not to mention an era of relative peace between Israel and its enemies that endured until the assassination of Yitzakh Rabin in 1994. Cheney and Rumsfeld on the other hand inaugurated the era of the Empire of Chaos. When and where American power has been used since Dick Cheney’s rise, the result has been chaos. Name me a single American intervention since Cheney’s ascension as Vice President and after that has resulted in success. You can’t do it. Every single one is a master-class in the creation of chaos. We don’t nation-build; we manufacture failed states.

Ford’s loss to Carter in 1976 imbued Cheney and Rumsfeld with a lifetime resentment of Kissingerian diplomacy. Cheney and Rumsfeld took different paths, but had the same ultimate policy goal for America: ‘Machtpolitik’. The use of maximal American power to preserve the pax Americana for as long as possible. Rumsfeld went into the private sector and got rich. Cheney got himself elected to the House of Representatives, where as a ten-year backbencher he never saw a defense program he didn’t vote for.

Then Cheney got appointed SecDef by Bush I. The Gulf War happened. He’s incensed US forces didn’t go to Baghdad and topple Saddam, so was his protege Wolfowitz. When Clinton beat Poppie Bush, Wolfowitz left DoD for thinktank land and Cheney, like Rumsfeld before him, took a lucrative business sinecure. While out of power, Cheney and his acolytes spread their neoconservative ideology like a virus. They built the think tank Project for a New American Century with the central goal of promoting its ‘clean break’ policy prescriptions. PNAC ideas soon became the sole driver of America’s post-Cold War foreign policy, especially when President Clinton adopted them, damn near wholesale.

This is a crucial point. Clinton adopted regime change in Iraq as a policy goal. He beefed up the no-fly zones over Iraq, as well. Indeed, Clinton’s foreign policy was totally incompetent. Seriously, we still have troops in the Balkans. And don’t forget the illegal partition of Kosovo from Serbia, which opened up the nasty can of worms affecting us even now. The main point here is WE DID IT FIRST. The USA. Not China. Not Russia. The indispensable nation created the precedent. At the time the partition was vehemently opposed by the Russians. Russia was so incensed, and mostly impotent at the time, that they sent troops to occupy Pristina’s airport. US forces were ordered to overpower them. US Gen. Mike Jackson, to my eternal gratitude, defied the order saying, “I’m not having my soldiers responsible for starting World War III.”

I recount this episode of Bubba’s presidency because it represents what international relations scholars and historians call a ‘revolutionary diplomatic moment.’ Spoiler: this is a big fucking deal. The partition of Kosovo was the exact moment when the US went from being a status quo power, defending the pre-existing order, adhering to the principle of non-interference in the internal affairs of sovereign nations (a principle established in 1648, by the way), to a revolutionary power, engaging in regime change and the conduct of illegal aggressive war: neoconservatism in action. Action that results in a straight line from Kosovo to the war in the Ukraine. Bubba ain’t blameless by any stretch of the imagination. But Cheney represents ‘Boss Level’ culpability.

Cheney’s final acts were many and deleterious, directly causing the decline he sought to avoid by abusing American power. First, he got himself appointed to Bush II’s veep selection committee. He then chose himself. The rest of the story is a tragic recital of ignored intelligence, spilled blood, criminal invasions, vast American fortunes pissed away in the sands of Iraq and Afghanistan and the senseless death of millions of innocents. All this because he got his feefees hurt by Henry Kissinger.

He may be dead but his influence persists like a zombie and I have no idea when it will finally be killed.

Pokrovsk Has Fallen, Now What?

~by Sean Paul Kelley

With the encirclement of the Pokrovsk-Myrnohrad pocket by Russia now complete, it is only days, a week or two at most, until mopping up operations are complete. This is an indisputable Russian victory, but don’t expect the war to change much. Russia’s strategy of attrition is about incremental gains that create unsustainable enemy losses, not the acquisition of territory. A fact that Western, especially retired American generals consistently get wrong. They expect the Russians to fight like Americans. That’s a terrible assumption to make.

On June 30 of this year I wrote that Russia was beginning its advance on Pokrovsk in earnest.  Now, a lot of Western commentators, like Gen. Keane, have made the claim in the legacy media, along with other retired US generals, that the Russian’s have been bogged down in and around the Pokrovsk area for a year and only have 30-something kilometers to show for their efforts. This is why I cite the above link about the start of Russia’s encirclement of Pokrovsk. American generals obsesses about big red arrows on maps, rapid armor advances taking territory, breakthroughs while Russia’s attrition of Ukrainian soldiers massively degrades the Ukraine’s ability to prosecute the war. US generals, however, display staggering amounts of hypocrisy in discussions about Russia’s massive and successful strategic bombing campaign. Those selfsame generals who cheered American Shock and Awe war porn that dominated the news coming out of places like Iraq, Afghanistan, and Libya. Funny how they now label the same strategy, employed now by evil Russia, as war crimes and focus on Russia’s killing of civilians, which the Russians are studiously trying to avoid and largely succeeding. But I digress.

American generals, think tankers and media personalities are ignorant, be it vincible ignorance or supererogatory, of what a strategy of attrition really is and what it looks like. Here’s the best definition I’ve got for you: using military power to gradually degrade an opponents military resources, i.e. killing as many of your adversary’s soldiers and wrecking as much of his kit as possible and/or breaking his will to fight. Nowhere in the generally accepted definition of attritional warfare does it say a word about occupying as much land as possible. That comes later. Much later.

With Pokrovsk surrounded what should we expect from the Russians? The landscape west of Pokrovsk is mostly open fields for many, many kilometers, with few tree lines, villages or ravines for Russian forces to utilize for an effective defense against the Ukraine’s drones; hardly an ideal landscape for attritional warfare. In fact, with the Ukraine’s ability to manufacture drones still intact it would be a killing field, littered with Russian armor, APCs, infantrymen and anything else the Russians might send into the open.

Make no mistake, the Russians are going to have to march across the landscape west of Pokrovsk at some point, but I posit the following near-term moves by the Russians. I’ll follow up with some developments I expect later in 2026.

First, Russia will continue encircling other salients, or cauldrons as the Russians prefer to call them, they appear to be enveloping, like the Kupyansk-Senkove salient or the potential envelopment of Konstantinivka. These areas offer excellent defensive positions and landscapes for Russia’s small-teams based attritional style of attack along the line of contact. It begins with artillery and/or missile bombardment, small teams then attack and destroy Ukrainian positions, kill or capture soldiers, retreat, then let the Ukrainians return. Rinse and repeat with drone coverage dominating overhead and you’ve got a style of war that chews up time like Andre the Giant hoovered up food at all you can eat buffets. It’s efficacy is not in doubt so long as you understand Russian strategy. If you’re ignorant of it, well, then you are expecting a big armored break-out after Pokrovsk, which won’t happen, because that’s not how Russia is conducting this war.

Second, Russia will consolidate its gains in and around Pokrovsk, after the Ukrainian soldiers in the pocket are killed or surrender. For some time after I foresee Russia utilization of tactical defense within an offensive framework, much like what American generals called the strategic defensive during our Civil War. In essence, at first they’ll capture positions, then dare the Ukrainians to take them back by appearing weak, digging in, rotating out tired soldiers, and firming up logistics. Subsequent Ukrainian attacks lead to mounting casualties. Then do it again.

In the context of capturing Pokrovsk, Russia will continue targeting the Ukraine’s industrial base, especially drone manufacturing sites. And it will hammer the nearby cities of Kramatorsk and Slovyansk with drones, missiles and FAB glide bombs, but it will be some time until Russian ground forces are within reach of mounting an attack on either city. Much will also depend on how well the Ukraine’s armed forces perform.

In war your opponent gets a vote on whether you succeed or not. Will the Ukraine’s armed forces hold up or might we see a general collapse in 2026? The Ukraine is now engaged in the widespread press ganging of men to fight on the front, reports this story at Responsible Statecraft. Some of the men press-ganged into service have reportedly died from blunt-force trauma, after beatings with iron bars and one young man died from injuries sustained attempting to jump out of the vehicle he’d been forced into. Most of the ‘busificaiton’ as it is euphemistically called has taken place in 2025 and thousands of such videos can be found here, proof that the Ukraine’s manpower shortages are growing to crisis levels. Such activities by Ukrainian recruiters also bodes ill for the armed forces, and adjacently indicative of the efficacy of Russia’s strategy of attritional warfare. Although press-ganging is not something Russia directly influences, it’s a clear symptom of the unsustainably large amounts of casualties the Ukraine has and continues to sustain.

In the near-term expect the war on the ground to continue as it has since 2023. Russia will grind it out, slowly and patiently. I always find it laughable when commentators claim that hardliners in the Kremlin are chomping at the bit for Putin to launch a massive offensive. This is stupid, Western group-think. Why is it so hard to understand that Russians are naturally endowed with a deep well of patience to draw upon? Especially Putin. That is not to say there will be no fireworks in the near future. But they will be arriving from a different direction than Russian soldiers will. They will come from above.

A near-term imperative for Russian forces is a way to achieve drone dominance along the line of contact. Russia has, by and large, achieved a hybrid-kind of air superiority. This has largely been achieved by its manufacturing prowess, producing, according to some sources, nearly a thousand Geran-2 drones a month. One report dated this September describes a new jet-powered version, the Geran-3, that is operational, largely resistant to electronic warfare and can be fitted with a 90 kilo thermobaric warhead, making them extremely lethal, inexpensive and plentiful. Russia also manufactures and utilizes on a daily basis hundreds of Gerbera decoy drones. By using the Geran-2 and 3s in conjunction with Gerbera decoys and higher value missiles like the Iskander and the hypersonic Kinzhal the Ukraine’s ability to mount anything approaching an effective air defense is nullified.

Achieving drone superiority over the line of contact is another matter altogether. The Ukraine can still manufacture enough FPV drones to give the Russians pause, forcing their continued use of small-teams to attack, destroy and then retreat. But, the Russian’s are innovating. For example, there are recent reports of the deployment of a mother-ship drone with two FPV drones attached with fiber optic cables. The mother ship drone flies at altitudes above the FPV’s alleged EW bubble and by connecting its two FPV drones via fiber optic cables achieves complete EW avoidance. While not a game changer, widespread deployment of such drones would make the war that much more difficult for the Ukraine to prosecute effectively.

Pokrovsk is a major victory for Russia, a significant morale booster for the troops and those on the home front and proves the efficacy of Russia’s strategy of attrition. But don’t expect much to change after Pokrovsk. It’s a loss for the Ukraine. The question, how big of a loss? How many troops died or will be captured once the pocket is completely mopped up remains the most important variable of the battle; how badly will it effect the Ukrainian armed forces morale is what bears watching, by Putin and Zelensky alike.

 

Two Quick Hits

~by Sean Paul Kelley

First, Dick Cheney died today. He was 84 years old. It’s a personal policy of mine to avoid speaking ill of the dead on the same day they die. I’ll comment on the consequences of his time in office some time soon. You are certainly free to say whatever you want in the comments.

Second, when it comes to military power, Singapore is a nasty, mean little porcupine crossed with a skunk whose motto is FAFO and if I were a neighbor I wouldn’t want to find out. (What a damned fine run-on sentence, yeah?) It’s also something their new Victory Class MRCV (multi-role combat vessel) makes abundantly clear and reminds me of an experience I had while living there.

In the run-up to National Day, or Independence Day, I don’t remember what it’s officially called but the military was out in full force, rehearsing its marching routes for the celebrations.

I lived on Beach Rd. and was sitting out in front of my favorite duck restaurant when an absolutely terrifying thunderclap occurred. I damn near pissed my pants. I looked up at the clouds, as thunder is kind of rare in Singapore, and saw the shadow of a triangle pass a kilometer down Beach Rd. from where I sat.

“What the hell was that?” I asked the waiter.

“Just a jet practicing for the parade down our street,” he said all nonchalantly.

Then the f**king thing made another run down Beach Rd. no more than 300 feet overhead. The windows rattled everywhere.

My experience in that moment gave me just a small inkling of how terrifying it must be to face the business end of a US F-15. It’s a feeling that cannot be described.

One I am not interested in repeating, either.

 

 

On the Public Abuse of Our Historical Ignorance

~by Sean Paul Kelley

When supposedly well-educated people abuse history, analogize incorrectly, or make ridiculous comparisons for political gain I lose all semblance of mindfulness, which results in a complete takeover of monkey-mind (a Zen Buddhist term for losing your shit). For example, a few days ago I watched this video of US Air Force Brigadier General Douglas Wickert asserting that China is preparing for a Pearl Harbor style-attack. After calming down, rewatching the video and reading the transcript in an attempt to confirm the Air Force general made such an ill-informed assertion it became clear he did not make the assertion explicitly, but implied it in multiple ways at multiple times. He also cited Army Air Force General Billy Mitchell, the father of the strategic bombing doctrine America so loves, several times. I’ll explain why citing Billy Mitchell is both correct and important, but indicative of a dangerously unimaginative strategic mindset. But first let’s discuss the You Tube video’s click-bait title “U.S. General Warns: China Prepping for ‘Pearl Harbor-style’ surprise attack.”

I don’t know about this. I’m ambivalent here.

Why?

Well, I’m unable to decide if this is just lazy, racist thinking, or plain old-fashioned historical ignorance, willful or otherwise. But I can state, without an iota of ambiguity that China, in its six thousand year history, has absolutely no history of conducting surprise attacks on non-combatant sovereignties.

Zero.

Even at the dawn of Chinese history there is no mention of surprise attacks against states one is at peace with. Not in Sima Qian’s ‘Records of the Grand Historian’, who is China’s version of Herodotus, nor in the Art of War, by Sun-Tzu, which is without question the greatest book on strategy ever written. Sun-Tzu was a Chinese general living during the Warring States Period. His realism and understanding of human nature reminds me a great deal of the Athenian general and author Thucydides, but I digress.

The assertion that China is preparing a sneak attack is so utterly ignorant of East-Asian history it’s embarrassing to read. And the parallels Gen. Wickert tries to make are like a thirsty man reaching down from the rim of the Grand Canyon to get water from the Colorado River: delusional. But, it’s also unsurprising.

Why?

Because what Gen. Wickert embodies is another in a long list of American generals competent in both tactics and the operational art of war—which includes exceptional prowess in utilizing America’s unparalleled logistical expertise—but a insipid and unimaginative general who has zero concept of strategy, historical, grand and/or otherwise.

Need another more obvious example?

Okey-dokey. Here’s a blast from the past: US Army Gen. Tommy “Catastrophic Success” Franks.

Here’s where the abuse of history gets worse and kind of sways me towards thinking this is kind of an unacknowledged form of racist thinking regarding East-Asians. I mean, seriously, aren’t they all clothes washers, little and yellow, and all look the same, right? Obviosuly East-Asian diversity is immense. If you’ve lived in Asia and traveled in several of the nations and are observant one can recognize by sight alone the facial incongruities between Japanese, Chinese, Koreans, Vietnamese, etc. But I again, digress.

Taking a Neo-racist interpretation further and adding a dollop of historical ignorance, let’s discuss Japan’s long history with surprise attacks. Anyone who has read Japanese and Russian history on even a basic level is aware of Japan’s most famous sneak attack: the Battle of Port Arthur.

Wait, what? You’ve never heard of it?

In short, the Battle of Port Arthur was a surprise night attack by the Japanese on the then neutral Russian fleet moored in the harbor at Port Arthur, Manchuria in 1904. So now you know.

But let’s push our historical horizon a bit further, shall we?

People who say “no one could anticipate Pearl Harbor” are fucking idiots. Japan proved at Port Arthur how far it was wiling to go to hobble an adversary it was at peace with. One could argue that Pearl Harbor was a clear failure of American strategic imagination. One could also argue that perhaps it was exactly what the historically well-informed president at the time was expecting when he ended the sale of oil to Japan, thus provoking an attack by Japan that would a.) hobble the US fleet and make the capture of the oilfields in the Dutch East-Indies easy and b.) force US entry into the war. That’s a debate honest people can have.

But arguing that China’s going to do it?

GTFO!

Now when it comes to 9/11—another great failure of the American strategic imagination—all the morons who said, “no one could ever have imagined such a thing” are fools. No less than seven years before author Tom Clancy sketched out a similar scene in his novel “Debt of Honor” in which a disgruntled Japanese jumbo-jet pilot crashes his jet into the US Capitol Building during a State of the Union address. Clearly imaginable. Clearly conceivable. Clancy was even interviewed many times after 9/11 about it. But those interviews disappeared down the memory hole.

Digressing. Digressing. Digressing. I know. My bad.

I’m going to state it again, unequivocally: China, i.e. the Han Chinese people, have no tradition of surprise attacks on non-combatant nations or polities they are at peace with. Of all the history I have read regarding the Chinese they have almost always approached jus ad bellum with honor. Jus ad bellum is a fancy smancy-pants way of discussing the laws a state or sovereignty must obey before engaging in war and sneak attacks are not only a huge no-no, but dishonorable as all get out.

Now let’s discuss suprise attacks in the context of jus in bello, meaning the conduct of war once declared, or how one acts during hostilities. Like how reprisals are allowed so long as they are proportionate, one principle the US has pretty much violated in every war since WWI. As for the element of surprise, or sneak attack? For fucks sake, that’s got to be obvious; everyone hopes and aims and seeks it and it is a totally legitimate aim to seek such an advantage. Take good ole Cherry Tree toppling General George Washington at the Battle of Trenton. His surprise attack across the Delaware River against the Hessians was a complete success and altered the course of the war. It also demonstrated Washington’s increasingly excellent grasp of strategy and its influence on morale. The Battle of Trenton galvanized his troops, and earned an enormous amount of loyalty, loyalty he truly needed after a long and mostly demoralizing year of campaigning. There is only polity I’m aware that has practiced sneak-attacks, jus ad belllum, on nations with which they were at peace: Japan. There may be others. If so, enlighten me. Sincerely.

To repeat, ad naseum, China has fuck-all history of acting this way. Zhuge Liang would rise from his grave and smite any Chinese leader who acted so dishonorably. Perhaps Gen. Wickert confuses China’s long history of attack through indirection, jus in bello, with sneak attacks, jus ad bellum, which would indicate he’s a pretty dim bulb.

Now, Wickert’s mentioning Army Air Force General Billy Mitchell’s prediction that the US and Japan would go to war was correct. It’s inarguable. But it’s Mitchell’s role as the father of the idea of strategic bombing that is problematic. The idea, refined, means a war can be won by air power alone. Only one war has ever been won by air power alone, the bombing campaign against Serbia to partition Kosovo. This air campaign was waged by Gen. Wesley Clark. The Serbs endured weeks of bombing and only relented when the US threatened to use ground troops. So, in a technical kind of way, it wasn’t won by air power alone. I’m already at a thousand words, so I’m not going to go into why such a strategy alone can’t win a war. The idea is problematic, nay, deleterious to US strategic thinking, inspiring ideas like missile defense and the like, which dumb down strategic thinking faculties in US generals, Air Force, Navy and Army alike.

The enduring use of the apocryphal story about the time the Soviet Premier asked the US President for permission to nuke China is another piece of history abused so frequently for so many different purposes I’m surprised no one has written a book debunking it. Historian Sarah Paine relays this Cold War anecdote for propagandistic purposes against contemporary Russia in this video. I didn’t go full monkey-mind listening to her, but I could not help but comment why this anecdote gained currency and how. I noted, 

The story that the Soviets asked the USA if they could nuke China is a fable. It is pure balderdash and a piece of Cold War myth that has metamorphosed into having some aspect of historicity and it does not. It never happened. Never. It was a lie whispered to certain sections of the US public to be spread in preparation for the opening to China that Nixon performed in 1972.”

I didn’t get this straight from the horse’s mouth, but I got it from a flag officer who got it from Henry Kissinger himself and I am fully convinced of my long-since passed friend’s veracity. Besides, Sarah Paine is wrong about everything she says in just about everyone of her lectures. Why people listen to her is simple: she reinforces their preconceptions, offering no challenge or opening for revision. The worst kind of historian in my opinion.

Finally, there is this video interview of ‘historian’ Sam Biagetti by Katie Halper.Starting around minute 5:37 Mr. Biagetti states that he doesn’t really believe there was ever anything like a unipolar moment. He then adds that people “assume” hegemony is the norm historically. He adds, “when it is not the norm,” and further indicates his ignorance by implying multi-polarity is the natural order of interstate relations. My head near exploded. I proceeded to write in the comments a brief history of hegemony/empire versus multipolarity, beginning with the Greek city states prior to the Persian wars and up to the end of the Peloponnesian as the first multi-polar system, that was followed by a long period of empire. In hindsight, I imagine there was a sort of multi-polarity in Mesopotamia in the 6th millenium BC but I can’t get it all right all the time. I’m not immune to forgetting. Anyway, this is the gist of my comment on his ignorance of ancient, medieval and modern history, including the post-Cold War era:

Sam B. is super misinformed and/or flat out wrong. The historical norm is empire, or hegemony. Mulitpolarity is actually very rare. Here are the only historical examples of mulitpolarity: Greece pre-Peloponnesian war, roughly 650 BC through the end of the Peloponnesian War in 404 BC. Soon thereafter Alexander conquered most of the known world and the classical Hellenistic world settled into empire and/or a handful of hegemonic powers. Likewise in East Asia, along the Yellow River basin in modern China, the Warring States period lasted from 475 BC – 221BC when Qin Shi Huang Di conquered all the warring states and united all of China. China has been a multi-ethnic empire to this day, ruled by rising and falling dynasties. As Luo Guanzhong wrote in his first sentence of China’s most famous novel: “”The empire, long divided, must unite; long united, must divide. Thus it has ever been” (話說天下大勢.分久必合,合久必分),” a statement that remains true to this day, even though the dynasty ruling now calls itself Communists.

There was a brief period in India of multipolarity, round about the time the Buddhist and Jain reforms of Hinduism gained traction. There was a handful of independent states along the Ganges River that warred against each other and made alliances when interests aligned.

Back in the West Rome’s rise acccelerated rapidly after winning the Second Punic War in 201 BC conquering the entire Mediterranean Basin by 14 AD, the basin remained uni-polar for a thousand years. After the fall of the Western half of the empire, conquerers ruled most of Europe, Charlemagne created the great Frankish empire. More unipolarity. The Eastern half of the Roman Empire, ruled from modern day Istanbul, lasted until 1453.

Renaissance Italy was a congeries of independent powers practicing a sort of balance of power multipolarity until France was invited into their politics and invaded. Empire reigned supreme in Europe for another two centuries. It was only until the peace of Westphalia in 1648 that the modern concepts of the soveriegn state, and the principle of non-interference in a sovereignty’s internal politics was forbidden, were codified by the international treaties signed in 1648. This concept spread throughout the world in the 19th century by the few states that could resist European colonization, such as Siam, Ethiopia (for a time), China and Japan and then grew exponentially during the decolonization era of the 1950-60s. But the successor states of the great Littoral empires of the UK, France, Dutch, Spanish, and Portuguese united in alliance under the auspices of a new hegemon after the second war of European suicide known as WWII: the United States, a hybrid-republican empire. It had one peer at the end of WWII: the USSR. But the USSR collapsed under the weight of mismanagement and stagnation of the 70s and recevied its death blow with Chernobyl. Had there been no Chernobyl glasnost and perestroika might have worked.

But by 1992 the US had no peer competitor, until the elite of the nation traded the foundation of its power, industry, to China for individual fortunes. It is unfortunate your interlocutor Sam B. is incapable of understanding post-Cold War history. Quite fascinating really. One wonders what subject of history he focused on, because geopolitics, war, empire, and the like are clearly not his strong suits.

Obviously my comment is a gross oversimplification, but necessary nonetheless. Miss Paine, Gen. Wickert and Mr. Biagetti are three easily found and disproven examples of the kind of a-historicity degrading political discourse in America.

As an historian myself, I am of course biased. So what? That doesn’t mean I’m wrong about this.

But how are we to learn to think with a national historical sensibility when the teachers of history in junior and high school double as the football and/or basketball coaches? You get what you pay for, and we aint getting nothing but shit. Our uniquely American scatalogical ignorance of history is dangerous, leads to easy political manipulation of an ignorant electorate and contributes to the rise of neo-quasi-racist belief system now taking over our public discourse.

These videos provide ample proof.

Development Politics in Central and South America

~by Sean Paul Kelley

Most of you probably know I lived in Nicaragua for a time—about six months—overseeing renovations to my father’s house, where he lives even now.

Me? I’m no fan of the country, nor its politics, nor do I romanticize the pervasive, grinding subsistence poverty in the countryside and sad, soul destroying poverty in the cities. About two dozen rapacious families guarantee Nicaragua’s place as second poorest nation in this hemisphere.

Nicaragua is not without its charms. I have a deep respect for the people of one of three nations in this hemisphere who, one, told the United States to fuck off and two, have largely succeed in keeping the US at arms length. The Spanish spoken in Nicaragua is, in two words, incomprehensibly unique. They distinguish between beans and rice and rice and beans. Seriously they make up two distinct dishes, although I can’t tell the difference. They eat some crazy vegetables—they have ten different varieties of squash, which I detest. But, they know how to cook meat in ways as diverse as barbecue, stew, seared and broiled. Chicken, pork, beef (no lamb or goats) and of course gallino de palo (tree-chickens AKA iguanas) make up the usual tasty fare.

Nicaragua’s best aspect is its untapped collection of perfectly sized waves, best on the Central American Pacific Coast by my estimation; waves for beginners and pros alike. There is only one monster, which I’ll get to in a moment. Sadly (or not) the changes in the political situation between 2015-2025 have scared off most surfers and they’ve migrated to Costa Rica, which has some sweet waves and parts of Guatemala that remain damned near empty. But, I digress.

One late morning, completely disgusted after persistently being thrashed by the waves breaking on the beach at Popoyo—the barrels collapsed so rapidly I was unable to get all but three drops (and no, I was not surfing the A-frame point break Popoyo is famous for, as a beginner I had no death wish I’ve seen too many boards munched on that wave) so I gave up, hopped in the car and began the two hour drive back to Granada.

After 30 minutes drive on a dirt road I turned north on Nicaragua’s stretch of the Pan-American Highway. No fan of Latin music (the radio was off) my mind wandered along the amazing scenery. Volcanoes rose. Small villages disappeared in a sneeze. The olive shades of Lake of Nicaragua were seemingly endless. Isla Ometepe, an island of twin volcanoes, shot up and passed by just as quickly. A few small attempts at agriculture grew to my left and right. All disappeared in blur or blink.

But time passes strange in a foreign land and stranger still on the road. I pulled over next to an anemic sugar cane field, cut a small stalk, sliced it into three pieces and returned to the car. As I shaved the outer layer off and bit into the heart of the cane, two thoughts, as if in quantum superposition, occupied my mind.

“Damn, this is sweet!” Mundane, indeed, but the other was the “a-ha” moment my brain had been silently working out for the last hour.

“Holy shit,” I mouthed silently, “Nicaragua is full of a whole lot of nothing.” Sure, up north in the mountains they grow some mid-grade coffee. Tobacco growth is accelerating also. Why in the current anti-tobacco global climate I don’t know? But it is. Cassava is a major crop, it’s like a potato but tastes like a brown paper bag on a good day. True hunger makes much palatable, I suppose. Plantains and bananas are grown of course. And there are a handful of other root-like plants and squash-like plants that grow there also. The country imports most of its rice, but grows a lot of beans/legumes.

Later I shared this realization with my father who was as surprised as I was by the realization. He agreed. Of course, Dad and I think alike in many ways—father and son, best friends, traveled in 50 plus nations together—so we quickly developed a shorthand for my “whole lot of nothing” observation, calling it ‘low hanging fruit’ syndrome, LHF for short.

LHF came to signify the lack of economic development and general lack of entrepreneurial spirit in Central America. Now, not every nation on the planet is going to be entrepreneurial. Laos is an excellent example—and please this is not a criticism of Laos and Laotians. When I was there they just seemed to have other priorities, like Buddhism. But Nicaraguan’s? The Pinoleros—the preferred demonym of the Nicaraguans and it has not one whit of the pejorative to it—are natural, gifted hustlers, practically pure bred entrepreneurs who are imbued with a naturally prepossessing work ethic and quite a bit of chutzpah. In short: they know when to engage, when to toss out a bit of bullshit. They can sell with the best Wall Street sharks—I’d know—and they know how to make and keep money.

“Why then,” you ask, “is Nicaragua, the largest nation in Central America, making no economic progress and going backwards instead?”

Great question!

There are two reasons for Nicaragua’s penury. First, 90% of Nicaraguans live west of the Pacific slope or in the interior highlands. This population occupies only 38% of Nicaragua’s landmass. The remaining 10% of Nicaraguans live on a narrow strip of the Caribbean Coast or the Corn Islands. Almost two thirds of the country—62%— is uninhabited. Not that I am advocating the rapine of all the pristine tropical forest of the Caribbean lowlands, but far to little of it is being developed and far too many people occupy a very crowded Pacific slope. What is the cause of this underdevelopment? The Pacific slope is littered with LHF and to travel through the Caribbean Lowlands to the coast takes two days on very, very bad roads. Until there is significant infrastructure development that opens the lowlands to development Nicaragua will remain mired in LHF poverty.

Hurdles aside, development politics in Central and South Americ are undergoing a seismic shift. That’s good news for the Pinoleros, money is pouring in. It’s bad news for the USA because the cash is coming from China. As is China’s policy, the money comes with no strings attached, unlike American money with its persistent moral litany of “Do this, don’t do that!”

“Do as we say, not as we do!”

This is not what the Nicaraguans hear from China. The only real demand the Chinese make is on the bigger infrastructure projects. Chinese builders design it, and Chinese build it, hiring few, if any local workers—usually because they don’t have the skills. The Chinese also pay for it, mostly, and don’t lecture. The US can’t compete—not after 150 years of terrible behavior in Latin America. The conclusion, the only conclusion, one can come to in Nicaragua and many other Latin American nations is that the USA is losing influence and power to China. Big time. And fast.

We have a sustained current account deficit with Nicaragua of $1.9 billion. That means we consistently import more from them than we export. China is the reverse. Much of that is due to FDI (foreign direct investment). This investment doesn’t benefit China solely. At present China is building a huge new airport that’s primary goal is to displace the Avianca Hub in San Salvador as the go to airport in Central America. China funded it to the tune of $499 million. It will possess two 4,000 meter runways, long enough and large enough to accommodate Airbus A380 and other wide body jets. The airport is intended to act as a non-stop hub to Europe, Asia and all of South America. Ground has been broken and the expected operational date is sometime in 2028.

The Chinese are also going to help build out the road network to the Caribbean Coast. This will create many new opportunities. Ortega, for all his faults, brought about some serious land reform at the beginning of his rule, so the Caribbean lowlands are now open to just about anyone who has the gumption to settle them.

The decline in American power is as palpable now as it was during the COVID epidemic. The moment COVID was politicized I could literally sense our decline, it was so obvious. Now, under Trump II, the decline is accelerating. Even in our own backyard.

The jury is still out on whether it is rapidly relative decline or real decline. I think it is the latter, only time will tell. Just not enough time for my taste.

On that note: please, please, support this site, subscribe or donate. We’re about $1,800 from our goal of $12,500. 

Apologies For The Non-Existent Posting

By Sean Paul Kelley

Folks I’m sorry I haven’t posted in a while. Not that I need to explain, but I value the community here and wanted to offer up what’s been happening with me.

For several months now I have been battling a severely low resting heart rate (low 30s to mid 40s) and there is some light at the end of the tunnel,  so says my cardiologist; we are exploring options. The good news is I have been an athlete most of my life. Ran a few marathons, for twenty years I ran close to 30 miles a week. So, my normal resting heart rate at age 55–gods aging does sucketh–is usually in the mid-60s to low 70s. As we all know you only get so many heartbeats in life. So, the fewer the better. That’s the good news.

But, a resting heart rate in the low 30s can cause fainting spells when one makes to fast a move. As an heretofore active person–I mean I walk at almost twice the speed of everyone else, naturally, I have to be careful.

As you all know I dislocated my shoulder a few weeks ago. The reason behind the fall was I was acting like a teenager bouncing down the stairs. Fortunately I began to faint when I only had four or five steps left to go, so instead of falling down the whole rack and breaking my neck, well, we all know what happened. Tangentially, when those guys in the movies who dislocate a shoulder then smash it back into place against a wall and then go on back to their kicking ass spree is pure horseshit.

Anyway, the upshot is this: when my heart rate is very low I am very tired and inactive. Today it’s in the 60s. But y’all will just have to bear with me for the time being. I have no way of knowing when this will go away.

On that note: please, please, support this site, subscribe or donate. We’re about $1,800 from our goal of $12,500. 

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