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

Category: Latin and South America Page 1 of 2

Follow Up and And Reply On My “How to Lose Allies” Post

First, I want to follow up on this: “I am due to have a conversation with a friend that lives in Denmark tomorrow and I’m going to ask him about energy prices.”

His reply, and I paraphrase as I did not record it or take notes: “if we still had to make our house payment, we would be totally screwed. The amount of money that we pay for energy now is about equal to what our house payment used to be. It’s about five times higher than it normally is, but what’s even worse is the high cost of energy filters out into everything in the Danish economy. A simple item like bread is three times higher than it used to be. Specialty items are three or four times higher than they used to be. Fish from fisherman that we go to the docks to buy from because we live on an island is four times more expensive because they’re paying four times more for the energy they’re using to go out and fish. It’s brutal and it’s all because the United States or somebody allied with it blew up the Nord stream pipeline. I try to keep my mouth shut about this because most people have drank the Kool-Aid, but I really hope Russia wins because I’m sick of all this global elite bullshit.”

These words were spoken by a well educated American married to a Dane with two teen-aged Danish children. If the Danish economy is suffering like this Germany must be fucked.

Where does Europe get its energy now? From the US, now exporting LNG (liquid natural gas) to Europe for 4x the price of Russian and Turkmen natural gas. Here is my question as a Texan: why haven’t natural gas prices risen in tandem with the export of the commodity? People I have asked who recieve natural gas royalties are pissed because there is no price increase pass through. So, owners of the wells are getting screwed and so are the buyers of the product. Welcome to Oligarchical America.

Next I want to address a handful of commenters in my post, best reprersented by Mark Level. He writes, in a very gracious and polite comment that he takes issue with my outline of American Grand Strategy. He notes, “This insane hobby-horse (or idee fixe, choose your metaphor) dates back far more than 120 years, probably 3x that long, and originates in British Colonial phobias about Russia and “the East” generally. Halford John Mackinder developed this lunacy & published it almost exactly 120 years ago, but it had a long pre-natal development among arrogant Imperial gits in Asia. (Gits and twits, upper-class British twits, like the Monty Python sketch.) See here, and the delightful childish fantasy of being Alexander Magnus from this Mackinder thought bubble . . . .

Please note, first and foremost, I used the word hostile power or hostile coalition. Hostile being the primary variable.

I’ve read Mackinder’s works. Anyone who has traveled across the Silk Road pretty much has to read them. His idea is not necessarily original. It’s more a fusion of ideas that came out of the late 18th century and 19th century Western European dominance of the world that began, as I previously mentioned, with the defeat of Venice in 1509,  Portugal’s conquest of a Spice Empire, and its desrtuction of the Ottoman Navy in the Indian Ocean, thus having no rivals, and of course Spain’s rapacious theft of New World gold and silver.

During the 17th and 18th century, a new idea developed with the growth of the British Navy, who outstripped the Dutch and pretty much took over their empire. New York City was, after all, New Amsterdam. What these developments presaged was an idea that centered around the ascendancy of the Littoral powers over the Continental Empires that had ruled Eurasia for millenia. Gunpowder, boats, better firearms, better steel and in the New World, devastating disease leading to genocide in many cases up and down North and South America. The Littoral is defined by strategistsas those land areas (and their adjacent areas and associated air space) that are susceptible to engagement and influence from the sea.” Thus the emphasis on a strong navy by Alfred Thayer Mahan who proved just how dominant Littoral Powers could be. For a time, that is, only for a time, as I see it.

Add to this ascendancy the wars of the Western European powers of the United Kingdom, Spain, France, and the Holy Roman Empire primarily fought during the 18th century for two strategic reasons, primarily by two very different nations with very different vital national interests at stake.

One, was the United Kingdom’s insistence that no power could dominate the Low Lands of the Netherlands and later Belgium because if they could, it would threaten an invasion of the British Isles, plus their massive exports of wool textiles, fueling the nascent industrial revolution. Smart, if ruthless policy.

Second, we must understand France‘s main goal during the wars of this time (and for several centruies prior) was to ensure a divided Germany. So long as the German states were littered into 100 different little principalities France had nothing to worry about. Thus France could go on dominating the continent. The first seismic change to this was the War of the Sixth Coalition which saw for the first time Russia flex its true potential when Russian troops occupied Paris. France’s cataclysm occured not in 1941 but in 1870 with her defeat in the Franco-Prussian war. The result of which was Prussia unifying all of Germany into one empire, adding insult to injury by having the Kaiser crowned in Versailles and taking Alsace Lorraine away as its prize.

Fuse those two strategies together and it is not too far an intellectual leap, considering the Great Game going on at the time between the UK and the Russian Empire, for Mackinder to conjure up his ideas. Were his ideas taken up by the United Kingdom? You bet, but by 1917 when it was clear that the United Kingdom could no longer maintain the balance of power in Europe and the United States had to intervene, (everyone should read AJP Taylor’s magnum opus, The Struggle For Mastery in Europe, to understand the balance of power and its collapse in 1917) US foreign policy intellectuals adopted it. And rightly so.

I think it’s the correct idea. But my reasons for thinking it’s the correct idea are not gonna make many of you happy. You might have to face some hard truths. Oh yeah, I did tell you I was a Realist in the old school manner of the word? In fact there have been a few times when Ian has chastened me pretty seriously for my realism. With that admisssion I will make another one: I don’t mind the criticism from Ian or from others. Ian is probably the smartest person I’ve ever met in my life and I listen to what he has to say. And when I say listen to him, I mean, I consider his words deeply. A man who cannot change his mind will never change anything. Nevertheless, I digress.

Here are my reasons for why I believe the prevention of a single hostile power or coalition of hostile powers from dominating the Eurasian landmass is smart policy. Please, if you take anything away from this sentence, take the meaning hostile. 

Number one: the Monroe Doctrine. Oh, I hear you screaming already. But the fact is that if this were not “our” hemisphere, not a one of us would have the standard of living we do today. Our hegemony of the Western Hemisphere is the primary foundation of our wealth and our power. You might not like it. I grimace frequently at the crimes we comitt to protect it. But, the Westphalian System is not built on justice. It is built on the acceptance of international anarchy. Each nation to its own. There is no single sovereign power governing planet Earth. Thus, violence is the supreme authority from which all other authority is derived. Is this a grim Hobbesian outlook? Yes. I don’t like it and I’m pretty sure you don’t either. But as a realist, I take the world as it is, not as I desire it to be. A hostile power or coalition of hostile powers that dominate Eurasia can take that hegemony away. You might not like it but trust me when I say you don’t want that to happen.

Second, a hostile power or coalition of hostile powers that dominate Eurasia can take more than our hegemony away, it/they can invade us. We don’t want that either. Thus we have a powerful navy that projects power to keep Eurasia divided–for the time being, because I think if we get into a war with China, their indirect way of war–read your Sun Tzu–will probably outwit us on the high seas. I’ve spent a great deal of time in China and have a healthy fear of their capabilities. However, my greatest fear is that in our arrogance we will engender the very hostility we must prevent and by our own devices bring about the doom we should seek to avoid. We have lost our edge, our generosity of spirit and our understanding of power. We have become a mean spirited, two-bit, cheap and vulgar people. And sadly, because so many of us are beaten down economically by rich elites who are delusional, we’re going to lose a big war in a painful way. A war that could be avoided, but probably won’t be. I hope I’m wrong, but don’t think I am.

That said, these very wise words, written by Robert D. Kaplan recently, convey the gravity of our present predicament, “There is no prediction. It is only through coming to terms with the past and vividly, realizing the present that we can have premonitions about the future.” Moreover, as a wise woman wrote about history, “the more I study history, the more I learn the art of prophecy.” Deeply contradictory statements, yet both true in their essence.

Are we any more perceptive now about what awaits our planet than were the Russians of 1917, or all of Europe in 1914, and, for that matter, the Germans of the 1920s and the early 30s?

Do we honestly think we know better than they did? With all of our gadgets and our technological triumphalism I bet you there are a handful of you out there that think we do know better than they did. I hate to disappoint you, but we don’t. History is the story of contingency and human agency, not inevtiablity.

So, there it is. Rip me to shreds if you wish. I’ve suffered enough Shakespearean arrows of outrageous fortune in my 54 years to handle it. In fact, I welcome your ideas and if you got this far I’m grateful for your time.

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Losing Our Asian Allies – And Fast

Ian in his last post mentioned that our Asian allies are slipping away from us. While we pretend to strategically re-orient the Japanese are engaging in massive rearmament begun by Abe and being continued by the current government. Japan has lost confidence in the American security umbrella because of the deceit we’ve displayed in foreign relations. The Koreans? I lived in Korea. They’re simply apoplectic. Some are even at the point where they are willing to consider a loose confederation with the north, an entente of sorts so the South has the protection of the North’s nuclear umbrella and the North gains goods and services from the South.

This is simply unheard of. When I talked to one of my former students who now works in the foreign ministry and he told me this I was gobsmacked.

Ian’s correct. For 400 years the balance of payments from the rest of the world went to the Littoral seapower states. For the last 50 years the balance of payments has been reversed.  All that gold is going back home. In one generation the United States has squandered all the goodwill and wealth it received during WWI and WWII. China in the last 50 years has lifted more people out of poverty than the rest of the world did during all of recorded history. Chew on that stat for a moment.

I will be visiting China and South Korea to do a 20 year retrospective tour and a 30 year retrospective tour on the former and the latter. I don’t know what to expect, but I remember China 20 years ago and being blown away.

The USA is in deep strategic shit. For 200+ years our power has been based on our complete hegemony of this hemisphere. For 75 of the last 100 years our main strategic goal has been the prevention of one power or an alliance of powers attaining hegemonic power over the Eurasian landmass. In the last six years we’ve abandoned that VITAL national interest for what? We’ve driven Russia into the arms of China. India lost all confidence in us. Now East Asia has.

If a single power or coalition of powers dominate the Eurasian landmass our two oceans will not protect us.

It appears I might have been wrong about the Israeli-Iran pissing contest being the opening act of WWIII. Good. What it really feels like is the first Balkan War in 1912. The calculus is being made in Beijing. And Tokyo. And Seoul. And Taipei. We lack the ability to protect our allies conventionally. And no one wants nukes.

I don’t have any smart quip to conclude with except a Spanish expletive, “la puebla es jodida.”

You get the idea.

Cuba’s Big Currency Mistake

So, there are some protests in Cuba. I don’t know how much they amount to; I’m no Cuba expert.

But I do know that Cuba made a huge mistake when they ended their dual currency system at the beginning of the year.

Dual currency systems designate one currency for purchasing internal goods and services, and another for external goods. Their purpose is to make sure that a country doesn’t spend more money on external goods than it is earning from exports of goods and services.

When there’s way more demand for foreign goods than there are export earnings, if you allow people to just buy whatever they want in a single currency system, your single currency collapses, leading to inflation or hyper-inflation.

There’s a reason Cuba ran a dual currency system before, and while getting rid of it allowed Cubans to buy more foreign goods to start, it has also contributed (along with Covid and US sanctions) to hyperinflation:

The result of dollarization, scarcity, and devaluation: Prices have skyrocketed and inflation will likely come in at a minimum of 500 percent, and as much as 900 percent this year, according to Pavel Vidal, a former Cuban central bank economist who teaches at Colombia’s Pontificia Universidad Javeriana Cali.

Hyper-inflation destroys regimes.

Cuba is caught in a trap; they don’t have enough of anything, including food. Their primary ally, Venezuela, can no longer help (also being caught in hyper-inflation). Letting Cubans buy directly in dollars and getting rid of caps on imports must have seemed like a way out.

But shortages are shortages: Moderate inflation helps ease them, hyper-inflation simply imposes them on a different group of people -— those who can’t get foreign currency, a.k.a., US dollars.

Were I advising Cuba, I would suggest going back to the dual currency regime. Long lines and evenly-distributed shortages are tolerated much better than hyper-inflation-induced shortages because they are far more fair and predictable.


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Bolivian Socialists Sweep To Power

Luis Arce is in power after a victory too large to pretend it didn’t happen. Last year, when the coup happened, I wasn’t sure if it was real or not, a call I got wrong (it was a coup). This is very good news. The election results were so clear that the coup leaders could not pretend otherwise, and a campaign of violence and intimidation, plus exile of Morales, failed. (Note that this is only barely a case of “democracy worked”, since a lot of people died, were beaten and so on fighting the coup.)

I will suggest that Bolivia will be best served by prosecuting those involved in the coup, and systematically (though carefully) expunging right wing ideologues from the military and the police so they are not willing, in the future, to back coups. As long as military and paramilitary forces are right wing, the country will always be ripe for coups and outside interference.

It is, nonetheless, an excellent sign that no attempt to retain power thru further force was used after all the intimidation failed.

I note, also, that the coup leaders were essentially fascist Christians. A warning for other nations.


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Why Actual Principled People Are Difficult (Glenn Greenwald Edition)

Glenn Greenwald

You may have heard that Glenn Greenwald, the founder of the Intercept, has been charged with cybercrimes by the Brazilian Federal Government. Glenn’s the reporter who broke the story of how Brazil’s ex-President Lula was taken down by Brazilian prosecutors. Moro, the chief prosecutor, was later rewarded by Bolsonaro with appointment as the Minister of Justice. All polls indicated that Lula would have defeated Bolsonaro.

The logic of the case is the same as the logic used by the US government to go after Assange, by the way: That Greenwald was in contact with and counseled hackers. Those people who are supporting Greenwald but don’t support Assange are hypocrites: Brazil is using the Assange precedent to go after Greenwald.

I support Greenwald, of course, as I have supported Assange, Manning, and Snowden.

Now this is the part of the piece where people (and with respect to Assange, I’ve done it) cavil a bit and say something like: “Despite Mr or Ms. X being problematic,” or some-such.

And it’s that I want to talk about, but not to condemn it. To explore it.

Because it’s almost always the case.

When Greenwald indicated he was going to oppose Bolsonaro, after the election, before he had revealed the evidence of Bolsonaro’s crime, I told him, twice, “This is dangerous.”

Bolsonaro’s so right-wing one might as well just call him a fascist. He celebrates policies of shooting political enemies. He’s a dangerous, dangerous man.

Glenn ignored me. I doubt the danger ever figured into his decision to go after Bolsonaro.

Meanwhile we have Manning, who is in jail for refusing to testify against Assange. When in military prison, Manning tried to commit suicide, she found it so unbearable. Despite that, knowing how awful it would be, she chose to go to jail rather than testify.

That’s bravery. (I note that all the Republicans refusing to testify under subpoena are sleeping at home, and haven’t been hit with fines intended to bankrupt them and cost them their home, as was Manning.)

Snowden pissed off the most powerful intelligence service and country in the world. He ran. Wikileaks helped him run, Greenwald published his revelations.

So I understand the caviling, but the point normal people don’t get is that these are all immensely morally brave individuals. They have actual principles they are willing to suffer for.

Most people don’t. They claim to have values, but they have never sacrificed anything meaningful for them, and never will. That sounds harsh, but it’s true. I’d say that even when it comes to their children, whom most people claim to love more than themselves, actions indicate that, well, they don’t.

People have preferences, not principles.

Most people.

Then you get people like Greenwald, Assange, Manning and Snowden. They are polarizing figures. They are loved or hated. They piss people off.

They piss people off precisely because they have principles they consider non-negotiable. They will not do the easy thing when it matters. They will not compromise on anything that really matters.

That’s breaking the actual social contract of “Go along to get along,” “Obey authority,” and “Don’t make people uncomfortable.” I recently talked to a senior activist who was uncomfortable even with the idea of yelling at powerful politicians. It struck them as close to violence.

So here’s the thing, people want men and women of principle to be like ordinary people.

They aren’t. They can’t be. If they were, they wouldn’t do what they do. Much of what you may not like about a Greenwald or Assange or Manning or Snowden is why they are what they are. Not just the principle, but the bravery verging on recklessness. The willingness to say exactly what they think, and do exactly what they believe is right even if others don’t.

They don’t compromise, and they often act without regard to the risks and dangers and whether or not anyone else agrees with them.

That’s what makes them what they are, and it is very rare that you get the good without the bad.

Ordinary people judge them by their own, ordinary standards. But these people don’t live by the standards of ordinary people, because ordinary people are mostly authority and herd followers. And those courtiers who have betrayed principle over and over again to become senior journalists and editors, well, people like Greenwald, Assange, and Manning are a rebuke to them that they can never even acknowledge consciously.

People with principles and bravery enough to stand on them, even in the face of great risk and against authority and the herd, are rarely comfortable people.


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Bolivia’s Evo Morales Forced Out of Presidency

Evo Morales

Well, strictly speaking he resigned, but not only has the military come out against him, his followers’ houses were being firebombed and the guards at the presidential palace left.

“Resign or die” is the fairly-clear message. This is how you force a politician out.

Did he cheat on the election, as he’s been accused of? I don’t know, but I do know that, absent the military turning on him, he’d still be in office.

What we’ll see now is if the violence continues: If there is a right wing “militia” sweep which sees the murder of his supporters, along with rape and torture.

If so, then yeah, it was a right-wing coup.

Morales was virtually the last South American left-wing leader. They’ve almost all been swept from power over the last few years. This is because commodity prices crashed. Their prosperity was based on high commodity prices.

Nonetheless, Morales dropped poverty rates by half, and unemployment by a third. He was unquestionably good for most Bolivians.

However, because these leaders never secured the state’s coercive apparatus, they were relatively easy to get rid of (with the exception of Venezuela and to a lesser extent Peru). For example, the situation in Brazil, wherein Lula was forbidden to run (because they knew he’d win) due to corruption charges, after which the prosecutor who charged him joined the new government.

Left-wing governments need to control key parts of the state apparatus: the military, police, and courts. They also need a press which is at least neutral. If they don’t control these thing, when they lose power it often results in horrible consequences: firebombings, imprisonment, death squads, rape, and torture.

This isn’t a game. The people on the other side are rich, ruthless, and scared, and they will do anything to keep power. They don’t play by the “rules.”


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Dangers and Possibilities in the Chile Protests

Tribune Magazine has an excellent interview with an activist in Chile, Isidora Cepeda Beccar, about the progress and prospects of the protests in Chile. It’s worth your while to read.

In my original post on the Chile protests, I noted that burning down the metros was stupid. It seems that the protestors agreed, and actually set up guards to make sure that no more of them were damaged.

This leads to a second issue:

Social movements like this can ignite very quickly. But the risk is always that they cannot burn for a long time. People have to go back to work, and after a while, they want things to return to normal. I do think it’s a risk that this movement has such little institutional form. In my view, unless its demands are taken forward by the Left it could result in no real change in the long term.

The problem here is that elites can generally out-wait protestors. They have more resources after all, and the revenue they are losing in a general strike is something they can absorb in a way that poor people can’t absorb losing wages.

Protests which do not really hurt or scare elites thus tend to fail. They either need to genuinely fear for themselves, or be in so much pain they will capitulate to make the problem go away. You saw this in a mild form in the US when the gays went after Obama for opposing gay marriage (yes, he did, this is a memory hole issue). They got personally in his face, they crashed fundraisers held by his wife and screamed. They made his family’s life hell.

It worked.

As I noted about rioting, or even inconvenient peaceful protesting, you need to do it where the elite live, so they can’t avoid it. You need to take away their feeling of safety, of invulnerability–violate their sense that they can wait it out.

If you don’t have a strategy to make the lives of elites miserable, or make them scared, why shouldn’t they just wait you out?

Beccar notes that the institutional left, including the Communist party, has been largely useless in the protests. They didn’t lead them, they don’t know how to respond. The politicians are all used to working in a neoliberal state, making trimming adjustments to basic neoliberal policy. The only institutional left-wing force helping out are the unions, which called a general strike.

What’s interesting is that this includes the miners. Leaving aside that mining is crucial to Chile’s economy, this matters because miners have access to heavy machinery and explosives. Miners, along with construction workers and truckers, are basically capable of going anywhere they want. They are a credible threat, if they want to be.

Students are good, and in Chile it started with the students. But it only ends well for the left if the hard-hat, working class gets involved and gets serious.

This doesn’t have to mean widespread violence. Simply breaking the gates on a few key elites’ estates may well get the message through.

One of the problems with the protests is, in fact, the lack of leadership. They were spontaneous and unexpected, and the demands are incoherent. I think that Beccar is very smart when she suggests that the demand should be for a new constitutional order.

It’s clear that this movement is not just addressing this or that issue. It is raising questions which go right to the roots. So I think we need to demand a new constitution. Our constitution today is the heritage of neoliberalism in Chile, dating back to Pinochet and the Chicago Boys. To change things fundamentally we need to cut those roots. We need to create new rules of the game.

We need a completely new constitution, created by a constituent assembly, with all kinds of social representatives involved. That would give real power to the people and encourage a much-needed new culture of participation, involvement, and social commitment to the political space. The president, the parliament, the political parties today are not representing the people’s voice. They haven’t done it for decades, why should they start now?

Trimming within a constitutional order set up by Chicago Economists and Pinochet won’t work. It was set up for that not to work.

Make fundamental change.

This applies, in many ways, to other countries, by the way. It may seem, for example, in the US that the Constitution is the same as it was in the early 70s, but it isn’t. Vast swathes of it have been reinterpreted by courts, especially the Supreme Court, in ways that are essentially conservative and neoliberal. Citizens United, which says money=speech would have been unimaginable in the 60s. So, frankly, was Bush v. Gore, the vast effective reduction in Miranda rights, the mandatory minimum sentencing, RICO laws (which violate freedom of association in fundamental ways), and the acceptance of current practices of civil forfeiture (where the cops now take more stuff from Americans than burglars do).

I grew up in the 70s, and the US today is far different from it was then: It is fundamentally less free, and that was a deliberate choice that shudders through law and the constitution.

I wish the people of Chile the best. Allende was a bright possibility, stolen from them by a very evil man with American backing. (Remember that Pinochet had dogs trained to rape women, and do not defend him to me.)

This is a chance for a reset and a new future. Pinochet made sure there was a lot more money in Chile, and made sure it wouldn’t get to most of the population.

Time to change that.

 

 

need for constitutional reset

A Few Words About Argentina

Okay, so Argentina elected a neoliberal president. He went to deep austerity, removed capital controls, and sought an IMF bailout.

Now it looks like a socialist may win and markets are freaking out, because he may default on some of the debt and re-institute capital controls.

Argentina’s problems have a long history, but it’s worth remembering this: Before WWII, it was a first world country, with a standard of living about equal to Canada’s.

Argentina partially defaulted in 2001. We should remember that that default was caused by following the conservative policy of pegging the Peso to the dollar, which any moron should have known would eventually backfire.

It is also worth remembering that, when Argentina defaulted in 2001, it wasn’t actually allowed to. American courts wouldn’t let Argentina pay the creditors who allowed their debt to be reduced unless they also paid those debtors who didn’t take the deal.

We live in a stupid, perverse world where people don’t understand that there has to be a balance between debtors and creditors. Creditors are making a bet, and if they lend to the wrong entity, and that entity eventually can’t pay back the debt, they should have to eat their losses. Don’t lend to people who can’t pay you back. Everyone knew that Argentina was going to have debt problems, every time, but they took the chance because they wanted high returns.

But the central financial system, the NY and London courts, and the IMF act as debt collectors for people who want the upside of high payments from distressed borrowers without the downside of possibly losing the money.

Worse, they act as enforcers for bad actors, who won’t cut deals, and expect to litigate.

Debtors may lose some money, but leg-breaking countries for rich debtors kills and impoverishes poor people.

Now, none of this is to say Argentina hasn’t made mistakes. Flipping back and forth between neoliberals and socialists is stupid. Pick one, and suck it up. Electing Macri was stupid, but then being outraged when he does what a neoliberal technocrat would do (i.e., austerity and sucking up to the IMF) is equally stupid.

Pick a governing philosophy and elect governments that adhere to that philosophy until the leading parties all follow it (like when Labour became neoliberal under Blair, cementing Thatcher’s victory).

Right now, Argentina is getting the worst of both worlds.


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