Monday, February 8, 2021

The risk of war in the Pacific is growing.

 While we stand mesmerized with the big data world we have created, we tend to forget how fragile this paradigm remains, dependent as it is on advanced chip technology which is also at the core of the China-US economic rivalry. 

 History tells us that it is extremely unlikely that the current transfer of power from West to East will proceed smoothly and that the current crisis period will likely be followed by open war, the outcome of which being the landscape of the 21 century. 

 In 2020, the trend of changes has switched from arithmetic to geometric. In 2021 it could well switch again from exponential to explosive. (which is also a "growth" rate by the way!)

Article from "Moon of Alabama" (link below) on 8 Feb 2021. [A highly recommended site with original and deep strategic analytic reports.] 



U.S., Taiwan Manipulate Chip Supplies To Press For War With China

The current government of Taiwan is trying to break the U.S. and Europe's One-China policy to become an independent country under U.S. and NATO protection.

The Peoples Republic of China, the mainland, insist, historically correct, that Republic of China, Taiwan, is a part of mainland China.

Since 1972, when Nixon went to China, the U.S. has supported that position:

In the case of the United States, the One-China Policy was first stated in the Shanghai Communiqué of 1972: "the United States acknowledges that Chinese on either side of the Taiwan Strait maintain there is but one China and that Taiwan is a part of China. The United States does not challenge that position."

The ruling Taiwanese nationalist Democratic Progressive Party under President Tsai Ing-wen's leadership now has a plan to break that policy. Despite regime change in Washington DC it has support from U.S. anti-China hawks:

[Taiwan's Representative to the US] Hsiao’s invitation to Biden’s inauguration, taken together with Blinken’s language at the confirmation hearing, indicates that the Biden administration is willing to adopt a large chunk of the Trump administration’s Taiwan policy.

While in office, Pompeo pushed back against China and acted as a guarantor to Taiwan — Beijing viewed him as an outright enemy.

Through well planned economic development policies Taiwan has achieved a near monopoly in the production of computer chips. There were until recently three companies which could mass produce computer chips with the most tiniest structures. Then the U.S. company Intel screwed up its development of a production process for 7 nanometer chips. It is now at least two years behind the competition. Its newest chips are no longer the most powerful in the market. The CEO and the technical leadership have since been fired but it still will take years, if ever, to regain the leadership. A second big production facility is owned by the South Korean Samsung conglomerate. It is mainly used to produce the chips for Samsung's own products.

The third and by far biggest producer of chips is the Taiwan Semiconductor Manufacturing Co (TSMC). TSMC does not produce consumer products. It manufactured, until recently, for everyone in the global industry. It is the go-to producer for high-end chips other companies need. It has now become a weapon in the hand of the Taiwanese government.

Under pressure from Trump, who put sanctions on Chinese companies including Huawei, TSMC reduced its sales to China. It also had to commit to open a production facility in the U.S. Trump's use of the chip production capacities as economic and political weapon has given the government of Taiwan new ideas:

Taiwan’s role in the world economy largely existed below the radar, until it came to recent prominence as the auto industry suffered shortfalls in chips used for everything from parking sensors to reducing emissions. With carmakers including Germany’s Volkswagen AG, Ford Motor Co. of the U.S. and Japan’s Toyota Motor Corp. forced to halt production and idle plants, Taiwan’s importance has suddenly become too big to ignore.

U.S., European and Japanese automakers are lobbying their governments for help, with Taiwan and TSMC being asked to step in.

The ongoing pandemic first led to a slump in consumption. Car manufactures lowered their sales target numbers and their orders for new chips. But soon chip demand increased for products needed to work from home. When the car demand came back TSMC told the car manufactures that there was not enough capacity to produce chips for them. Whether that explanation for the current shortages is really true is questionable:

The auto industry’s pleas illustrate how TSMC’s chip-making skills have handed Taiwan political and economic leverage in a world where technology is being enlisted in the great power rivalry between the U.S. and China -- a standoff unlikely to ease under the administration of Joe Biden.

Taiwan’s grip on the semiconductor business -- despite being under constant threat of invasion by Beijing -- also represents a choke point in the global supply chain that’s giving new urgency to plans from Tokyo to Washington and Beijing to increase self-reliance.

It takes some ten years to build a new chip fabrication facility. The investment necessary for an up-to-date 'fab' has steadily increased and is now more than $10 billion. While the U.S., Japan and Europe have recognized the danger of a chip production monopoly it will take quite some time before they can become less dependent on TSMC.

This gives the Taiwanese government a window of several years to use TSMC for strategic purposes:

“Taiwan is the center of gravity of Chinese security policy,” said Mathieu Duchatel, director of the Asia program at the Institut Montaigne in Paris. Yet while Taiwan’s status in the global chip supply chain is a “huge strategic value,” it’s also a powerful reason for Beijing to stay away, said Duchatel, who’s just published a policy paper on China’s push for semiconductors.

Assuming Taiwanese forces were to be overwhelmed during an invasion, “there is no reason why they would leave these facilities intact,” he said. And preserving the world’s most advanced fabs “is in the interests of everyone.”

For all the moves to reel back domestic chip fabrication, it’s optimistic to think the supply chain for such a complex product as semiconductors could change in short order, Peter Wennink, ASML chief executive officer, told Bloomberg TV. “If you want to reallocate semiconductor build capacity, manufacturing capacity, you have to think in years,” he said.

China has threatened to invade Taiwan should it declare independence. But as long as it depends on Taiwanese chips it can only do that while also damaging its own industries. Still there is little doubt that China would be willing to take that risk:

The Chinese government said Wednesday that actions like its warplanes flying near Taiwan last weekend are a warning against both foreign interference in Taiwan and any independence moves by the island.

Asked about the flights, Zhu Fenglian, a spokesperson for China's Taiwan Affairs Office, said China's military drills are to show the nation's resolution to protect its national sovereignty and territorial integrity.

"They are a stern warning against external interference and provocation from separatist forces advocating for Taiwan independence,” she said at a regular briefing, giving the Chinese government's first official comment on the recent flights.

Taiwan thus still needs protection. But as long as the U.S. and others still adhere to the One-China policy it is unlikely to get sufficient support. The plan then is to use Taiwan's chip industry to press others into guaranteeing it military support:

Wang Che-jen (汪哲仁), an assistant research fellow at the government-funded the Institute for National Defense and Security Research (INDSR), said in a recently published paper that the current shortage of automotive chips has highlighted Taiwan's strategic place in the global semiconductor industry. The shortage shows that the supply chain for such products has become a matter of diplomatic, security and strategic concern, Wang said in the paper, titled "Automotive chip shortage: A look at Taiwan's strategic place in the semiconductor supply chain."
...
The American and Japanese governments, for example, have invited Taiwan Semiconductor Manufacturing Co. (TSMC), the world's largest contract chipmaker, to build facilities in their countries, he noted.

Wang, however, warned against such a move, saying that while it may help to shorten the global supply chains, it may also weaken Taiwan's strategic advantage in the semiconductor industry.

"For Taiwan to maintain its 'silicon shield,' it needs to persuade the European countries and the U.S. that keeping TSMC in Taiwan is the best option," he wrote.

The concept of a "silicon shield" describes Taiwan's strategic position in the technology supply chain as a shield against any attack by China.

The blackmailing through chip supplies is not just an academic concept. The Taiwanese government is now openly using chip supplies to press other governments into economic and political concessions:

Taiwan's high-tech chip foundries are some of the world's biggest and most advanced, and so European car manufacturers have been reaching out to Taipei for help.

"Our government and chip manufacturers are mulling how to assist them," Minister of Economic Affairs Wang Mei-hua told reporters on Thursday.
...
Wang said she spoke to industry representatives on Wednesday, including Germany's de facto ambassador to Taipei.

She said she hoped Europe would help Taiwan obtain vaccines for the coronavirus.
...
"We need other countries to help Taiwan acquire vaccines, especially for medical workers as a top priority," Wang said.

"I told the German representative yesterday that we can help them acquire automotive chips to solve the problems facing the auto industry and we hope they can do what they can to help Taiwan acquire vaccines," she added.

Vaccine blackmail is one thing.

Nick Siemensma @nicksiem - 6:05 UTC · Feb 6, 2021

Taipei openly offering a quid pro quo to Germany. Is vaccine a fair price? Taipei turned up its nose at Fosun-manufactured supply of the Pfizer-BioNTech vaccine, so perhaps Germany can offer something more. And was no similar exchange of favours available to the USA?

The exchange with the U.S. is about much bigger things than vaccines. To press for political support that involves a potential war with China is on a different scale. Still the ball seems to start rolling:

The Daily Mao @TheDailyMao - 8:58 UTC · Feb 4, 2021

8/ Up until 2020, US tech-economic strategy was mainly to profit off the Chinese market. But after the COVID shock, that's shifted: the US now wants to bleed out the Chinese economy and specifically cripple Chinese tech companies with semiconductors

9/ In terms of bleeding out the Chinese economy, autos are where it starts. My TSMC source tells me they have been asked by the TW/US govts to prioritize chips for auto plants outside China and for US/JP carmakers, to punish the EU for the #CAI

10/ Yesterday, he mentioned that his TW govt counterpart was literally 'trying to stifle a smile' when he told her some of TSMC's Chinese customers in auto would have to shut down because they weren't getting enough chip supplies.

11/ But this isn't just some sort of 'happy accident' that a 'free market' will fix. TSMC does not have carte blanche to expand capacity as much as it wants. The market is not allowed to function in this instance... thanks to the TW regime.

12/ He has disclosed to me that the DPP has been using enviro regulations and other methods of pressure to keep TSMC from expanding its facilities 'too fast' - the TW regime seems to want an artificial shortage of chips to give them greater leverage in international negotiations

13/ And again, this is done in collaboration with the US government - to make sure 'every planned production line that comes online is instantly filled with US orders only.'

This is what was agreed upon between Tsai, Krach, and Morris Chang...

14/ ...and maintaining these artificial shortages to hurt companies producing in China are what Tsai means when she talks about restructuring the global supply chain away from China.

15/ As you may already have guessed, the EU is not happy about this arrangement. Besides the surface issue of their automakers being caught in an undeclared trade war, the EU also feels deeply betrayed by Taiwan's regime over this issue.
...

Please see the linked thread for more details and supporting sources. 

This Taiwanese and U.S. brinkmanship make a war with China more likely and put it nearer than I had previously thought. This summer the situation could already become critical:

The Daily Mao @TheDailyMao - 18:05 UTC · Feb 5, 2021

BREAKING: The DPP of Taiwan has privately indicated to the US it might back an independence referendum in August of this year

In an interesting coincidence this summer will also see some European forces deployed to the South China sea:

In an interview with the Sydney Morning Herald on November 2, German Defense Minister Annegret Kramp-Karrenbauer declared that her country  will dispatch a frigate to patrol the Indo-Pacific from next year.
...
Her remarks comes two months after Germany became the second European Union member to release guidelines for the Indo-Pacific. France’s foreign ministry released a strategy document in 2018 for the Indo-Pacific, following a major policy speech by President Emmanuel Macron in Australia earlier that year. A subsequent French security strategy for the region was released by the country’s defense ministry in 2019.

The Brits, now a mere U.S. proxy force, also join in:

Japanese and British foreign and defence ministers on Wednesday began a meeting via videoconference to affirm stronger security cooperation amid China's growing assertiveness in the East and South China seas.
...
The ministers were also expected to agree to work closely on Britain's plan to dispatch an aircraft carrier strike group, centred on the Queen Elizabeth, to the western Pacific for joint naval exercises with the Japanese Self-Defense Forces, the officials said.

Japan welcomes the dispatch of the Queen Elizabeth, Britain's largest warship commissioned in 2017, as it shows the country's strengthened commitment to the Indo-Pacific region, they said.

From the U.S. perspective a conflict with China as soon as possible is preferable to one in later years after China had time to build its capabilities.

It may therefore well be that the U.S. is pushing Taiwan into an summer independence referendum while both use the chip supply issue to press 'allies' into supporting them in a potential war.

A strange game indeed!

This is a political article. There are many points I disagree with but others are relevant and weave the different pieces of the Covid, economic and political tapestry together. It also shows the mood in the US currently and where America thread, the rest of the world will follow soon enough.

Authored by Jim Quinn via The Burning Platform blog,

“Those who make peaceful revolution impossible will make violent revolution inevitable.” - John F. Kennedy

“You never change things by fighting the existing reality. To change something, build a new model that makes the existing model obsolete.” - Buckminster Fuller

The takeover of the country by an amalgamation of bad characters representing fascist corporatism, collectivism, billionaire oligarchs, social media tyrants, pandemic peddlers, and Deep State snake oil surveillance state salesmen has marked a turning point for the country. Battle lines are being drawn, a propaganda war is already being waged, enemies are preparing for conflict, rage is rising, and the country is headed towards some level of dissolution.

Events since the inception of the release of the China virus from the Wuhan bio-weapon lab, have been accelerating towards an epic struggle between those constituting the true power in the country and those they consider deplorable and undeserving of respect or a voice in how the country is governed. The shadowy figures behind the curtain of Bernays’ invisible government have revealed themselves and no longer fear the plebs they rule over, as their sociopathic hubris has convinced themselves they are invincible.

They have been emboldened by the success they have achieved in engineering a takeover of the government through weaponizing a flu to coerce politicians into shutting down the nation; utilizing propaganda to induce the majority of Americans to cower in fear from a virus that is highly non-lethal (99.7% survival rate) to anyone under 80; destroying hundreds of thousands of small businesses while enriching mega-corporations; successfully rigging a presidential election through mail-in ballot fraud and vote machine machinations; provoking a fake race crisis using BLM and ANTIFA useful idiots; profiting to the tune of trillions from the Fed money printing operation; suppressing free speech and medical truths about the virus through social media censorship; setting up Trump supporters as dangerous insurrectionists with the Capital farce, subsequent white supremacist storyline, and militarization of Washington DC to complete the false narrative; and now having their empty vessel pretend president signing executive orders to pull the country hard left; with Supreme Court packing, DC and Puerto Rico statehood on the docket; and Domestic Terrorism legislation to make all Trump supporters enemies of the state.

The overlords think throwing $600 at the plebs every six months, while allowing them a pittance of unemployment crumbs, will keep them sedated as long as they have their iGadgets to keep them distracted. The unholy triumvirate of Big Tech, Big Pharma and Big Gov are generating tens of billions by peddling a DNA altering experimental rushed vaccine, that isn’t really a vaccine and doesn’t really keep you from getting Covid or spreading it further. We also don’t know the long-term consequences of this “medicine”. And it seems the triumvirate is doing their best to cover up the adverse reactions being reported, miscarriages and numerous deaths of nursing home patients shortly after getting the jab.

The blizzard of lies about the effectiveness of face diapers and lockdowns from “medical experts”, “journalists”, corporate media propagandists, and government apparatchiks has been relentless. These fabricators bloviate about following the science while ignoring the facts proving masks and lockdowns DO NOT WORK and ivermectin and hydroxychloroquine DO WORK. The level of deceit and deception being applied by those in power is drastically increasing the anger and rage in the country towards authority.

The country is already at war, even though many don’t know it, and the Deep State/Oligarchs are clearly winning. This begs the question, how can you defeat an enemy who controls the presidency, congress, mainstream media, social media, major cities, major states, the military, FBI, CIA, DOJ, and the courts? The truth is they think they’ve already won the war and will dictate the terms we will be forced to live by.

But hubris, arrogance and pride are always the Achilles heel of sociopaths, believing they know what is best for humanity while inflicting their lunatic solutions upon their subjects. The feeling among millions of Americans is they have either been abandoned, stabbed in the back, or robbed. They aren’t exactly sure who to blame, who to trust, or who to fight, but they are trying to figure out the best course of action, given the current circumstances.

I was reminded of the 1983 movie – WarGames – while we were still in the midst of the real Cold War with Russia, when nuclear annihilation was actually a possibility. Considering those running the show have been pimping the fake Russiagate charade for the last four years and continue to provoke Putin, the message of the movie has never been more applicable. We are surely in a strange game, where all outcomes are likely to be horrible for all the players. In the movie, the United States nuclear launch control is given to a NORAD supercomputer known as WOPR (War Operation Plan Response).

It is programmed to continuously run war simulations, learn over time, and concoct the best plan of attack if nuclear retaliation is needed. A young computer hacker unwittingly hacks into WOPR and causes the computer to think the Soviet Union has launched missiles at the United States. The humans attempt to regain control over WOPR, but it has learned how to bypass the manual controls put into place to avoid an accidental nuclear war. The computer obtains the launch codes and starts a countdown to a massive missile launch that would start World War III and result in the end of humanity.

The creator of the code and the hacker realize they have to teach WOPR why launching the missiles would be futile. They direct the computer to play tic-tac-toe against itself. This results in a long string of draws, forcing the computer to learn the concept of futility and no-win scenarios. WOPR obtains the launch codes, but before launching, it cycles through all the nuclear war scenarios it has devised, finding they all result in draws as well.

Having discovered the concept of mutual assured destruction (“WINNER: NONE”), the computer tells them it has concluded nuclear war is “A STRANGE GAME” in which “the only winning move is not to play.” It’s amazing how a movie was able to capture the enormous power and extraordinary danger of computer algorithms decades before the country had been hijacked by Big Tech companies using the power of their computer platforms and manipulating algorithms to hijack elections, censor opinions contrary to the approved Deep State narrative, and creating conflict through fake news and engineered storylines.

I, along with millions of the new resistance, consider Basement Biden an illegitimate president, installed as a Chinese controlled Manchurian candidate to complete the final shredding of the Constitution and surrender to globalist oligarchs. In Biden’s case, he’s more like a Senile-churian candidate who will sign anything his handlers place in front of him and pathetically attempt to say whatever they put on his teleprompter, before he has to take a nap. The first couple weeks of the new Susan Rice/Barack Obama administration has been as bad as expected, with dozens of executive orders reversing all Trump’s executive orders and implementing everything the far left was demanding, as their useful ANTIFA and BLM idiots continue to burn cities and riot for no particular reason.

It is undeniably clear the Biden administration, entirely controlled by the Big Tech/Big Pharma/Deep State co-conspirators, are going to ram through a far-left agenda with breathtaking speed, as they have no qualms about shredding the Constitution or remorselessly crushing their enemies under a barrage of pre-written bills and relentless propaganda about the danger of a white supremacist overthrow of the government flogged by their legacy media and social media arms.

Many dejected Trump supporters, along with the millions who didn’t care for Biden or Trump, are now angry the Biden handlers, led by Susan Rice, are actually implementing everything they said they would. Trump’s Executive Orders were not law and are being disposed of by the flick of a pen. Allowing presidents this monarchical power is absurd, and reflects a nation is disarray and in a downward spiral. There is absolutely no one in Washington DC looking out for the long-term best interests of the citizens. It’s solely about power, control, and enrichment of themselves and the oligarchs who put them in power.

Not one decision is being made looking out further than the next election, as these corrupt captured faux representatives divvy up the spoils, as the country spirals further into debt, while the Fed printed 40% of all the money ever printed in U.S. history during 2020 – with 2021 on its way to new records. The insanity of the monetary and fiscal decisions being made by Powell, Yellen, Biden and a congress filled with narcissistic myopic mathematically retarded troglodytes is enough to make a sane, rational, critical thinking American scream in agony at the devastation, strife and economic wasteland we are leaving for future generations.

I find myself increasingly ignoring the daily blather of posing politicians, fake news pundits, “medical experts”, self-styled financial gurus, twitterati, and government drones. Why should I get outraged on a daily basis by the actions of a presidential administration I consider illegitimate and central bankers doing the bidding of the oligarchy, as always? At this point I feel like blurting out Crooked Hillary’s famous angry outburst during the Benghazi hearing – “What difference at this point does it make?”.

I know there are many still believing, if the GOP can just win back the house and/or senate in 2022, they can get the country back on course. Others are waiting for the victorious return of Trump in 2024 like MacArthur’s “I shall return” moment in the Philippines. Some still believe the Qanon pablum and are trusting the plan. They are badly mistaken, as the country is too far gone, and must crash and burn before it can possibly be rebuilt.

I have thrown in the towel on believing we can vote our way out of this mess, as Washington DC is ruled by the Uni-Party, beholden to globalist billionaire oligarchs, the upstart Silicon Valley billionaire censorship tyrants, and the Deep State snakes surveilling all our communications and controlling the narrative through propaganda and suppression of our First Amendment rights. This engineered pandemic panic has been a test run to see how far they could go in using fear to make millions cower and applaud their rights being stripped in the name of safety and security.

The wolves are salivating, as we have proven ourselves to be a nation of masked obedient sheep, begging to be led to slaughter. While the Fed prints prosperity for the .1% by driving the stock market to astronomical heights, the average American is seeing their daily living expenses jump by 5% to 10% (as the BLS reports 1.4% inflation), and their jobs disappear (as the BLS reports 6.3% unemployment when 111 million out of 261 million working age Americans are not working).

The building anger in the country is palpable. The question is how do you fight an enemy with overwhelming superiority in financial resources, police and military forces, corporate media outlets, social media platforms, the financial system, intel agencies, and all branches of the government? This question is what made me recall the WarGames final scene. The only winning move is not to play. Direct confrontation is destined for failure.

The only way to defeat this enemy is through guile, cunning, patience, and persistence. The same method of resistance will not work for all people. Everyone’s individual circumstances will dictate how they resist. There doesn’t need to be a central commander or massed forces. Differing versions of guerrilla warfare will suffice. The enemy is a bureaucratic behemoth, slow and unwieldy, led by arrogant mediocrities, unable to strategize their way out of a wet paper bag. They know only how to use force and threats to achieve their despicable ends.

In Part 2 of this article, I will examine the concepts of Irish Democracy and Going Galt, providing a framework for defeating the enemy and regaining a say in how this country can be revived.

Friday, February 5, 2021

After trump...

A superb analysis of the Trump administration and integration of Covid in US politics. (Must read)

Clarity in Trump's wake 

Authored by Angelo Codevilla via AMGreatness.com,

The United States of America is now a classic oligarchy. The clarity that it has brought to our situation by recognizing this fact is its only virtue...

"Either the Constitution matters and must be followed . . . or it is simply a piece of parchment on display at the National Archives."

- Texas v. Pennsylvania et al.

Texas v. Pennsylvania et al. did not deny setting rules for the 2020 election contrary to the Constitution. On December 10, 2020, the Supreme Court discounted that. By refusing to interfere as America’s ruling oligarchy serves itself, the court archived what remained of the American republic’s system of equal justice. That much is clear.

In 2021, the laws, customs, and habits of the heart that had defined the American republic since the 18th century are things of the past. Americans’ movements and interactions are under strictures for which no one ever voted. Government disarticulated society by penalizing ordinary social intercourse and precluding the rise of spontaneous opinion therefrom. Together with corporate America, it smothers minds through the mass and social media with relentless, pervasive, identical, and ever-evolving directives. In that way, these oligarchs have proclaimed themselves the arbiters of truth, entitled and obliged to censor whoever disagrees with them as systemically racist, adepts of conspiracy theories. 

Corporations, and the government itself, require employees to attend meetings personally to acknowledge their guilt. They solicit mutual accusations. While violent felons are released from prison, anyone may be fired or otherwise have his life wrecked for questioning government/corporate sentiment. Today’s rulers don’t try to convince. They demand obedience, and they punish.

Russians and East Germans under Communists Leonid Brezhnev and Erich Honecker in the 1970s lived under less ruling class pressure than do today’s Americans. And their rulers were smart enough not to insult them, their country, or their race.

In 2015, Americans could still believe they lived in a republic, in which life’s rules flow from the people through their representatives.

In 2021, a class of rulers draws their right to rule from self-declared experts’ claims of infallibility that dwarf baroque kings’ pretensions.  In that self-referential sense, the United States of America is now a classic oligarchy.

The following explains how this change happened. The clarity that it has brought to our predicament is its only virtue.

Oligarchy had long been growing within America’s republican forms. The 2016 election posed the choice of whether its rise should consolidate, or not. Consolidation was very much “in the cards.” But how that election and its aftermath led to the fast, thorough, revolution of American life depended on how Donald Trump acted as the catalyst who clarified, energized, and empowered our burgeoning oligarchy’s peculiarities. These, along with the manner in which the oligarchy seized power between November 2016 and November 2020, ensure that its reign will be ruinous and likely short. The prospect that the republic’s way of life may thrive among those who wish it to depends on the manner in which they manage the civil conflict that is now inevitable.

From Ruling Class to Oligarchy

By the 21st century’s first decade, little but formality was left of the American republic. In 1942, Joseph Schumpeter’s Capitalism, Socialism, and Democracy described the logic by which government and big business tend to coalesce into socialism in theory, oligarchy in practice. But by then, that logic had already imposed itself on the Western world. Italy’s 1926 Law of Corporations—fascism’s charter—inaugurated not so much the regulation of business by government as the coalescence of the twain. Over the ensuing decade, it was more or less copied throughout the West. 

In America, the 1890 Sherman Antitrust Act’s authors had erected barriers against private oligopolies and monopolies. By maintaining competition between big business, they hoped to preserve private freedoms and limit government’s role. But the Great Depression’s pressures and temptations led to the New Deal’s rules that differed little from Italy’s. No matter that, as the Supreme Court pointed out in Schechter Poultry v. U.S., public-private amalgamation does not fit in the Constitution. It grew nevertheless alongside the notion that good government proceeds from the experts’ judgment rather than from the voters’ choices. The miracles of production that America brought forth in World War II seemed to validate the point.

President Dwight D. Eisenhower, who had come to understand large organizations that feed on government power and dispense vast private benefits, was not shy in warning about the danger they pose to the republic. His warning about the “military-industrial complex” that he knew so well is often misunderstood as a mere caution against militarism. But Ike was making a broader point: Amalgams of public and private power tend to prioritize their corporate interests over the country’s. 

That is why Eisenhower cautioned against the power of government-funded expertise. “The prospect of domination of the nation’s scholars by federal employment, project allocations, and the power of money is ever-present and is gravely to be regarded,” he said, because “public policy could itself become the captive of a scientific-technological elite.” Government money can accredit a self-regarding elite. Because “a government contract becomes virtually a substitute for intellectual curiosity,” government experts can end up substituting their power for truth.

The expansion of government power throughout the 1960s and ’70s in pursuit of improving education, eradicating poverty, and uplifting blacks created complexes of public-private power throughout America that surpassed the military-industrial complex in size, and above all in influence. 

Consider education. Post-secondary education increased fourfold, from 9 percent of Americans holding four-year degrees in 1965 to 36 percent in 2015. College towns became islands of wealth and political power. From them came endless “studies” that purported to be arbiters of truth and wisdom, as well as a growing class of graduates increasingly less educated but ever so much more socio-politically uniform.

In the lower grades, per-pupil expenditure (in constant dollars) went from $3,200 in 1960 to $13,400 in 2015. That money fueled an even more vast and powerful complex—one that includes book publishers, administrators, and labor unions and that has monopolized the minds of at least two generations. As it grew, the education establishment also detached itself from the voters’ control: In the 1950s, there were some 83,000 public school districts in America. By 2015, only around 13,000 remained for a population twice as large. Today’s parents have many times less influence over their children’s education than did their grandparents.

Analogous things happened in every field of life. Medicine came to be dominated by the government’s relationship with drug companies and hospital associations. When Americans went to buy cars, or even light bulbs and shower nozzles, they found their choices limited by deals between government, industry, and insurance companies. These entities regarded each other as “stakeholders” in an oligarchic system. But they had ever less need to take account of mere citizens in what was becoming a republic in name only. As the 20eth century was drawing to a close, wherever citizens looked, they saw a government and government-empowered entities over which they had ever less say, which ruled ever more unaccountably, and whose attitude toward them was ever less friendly.

The formalities were the last to go. Ever since the signing of the Magna Carta in 1215 A.D., the rulers’ dependence on popular assent to expenditures has been the essence of limited government. Article I, section 9 of the U.S. Constitution enshrines that principle. Congressional practice embodied it. Details of bills and expenditures were subject to public hearings and votes in subcommittees, committees, and the floors of both Houses. But beginning in the early 1980s and culminating in 2007, the U.S government abandoned the appropriations process.

Until 1981, Congress had used “continuing resolutions” to continue funding government operations unchanged until regular appropriations could be made. Thereafter, as congressional leaders learned how easy it is to use this vehicle to avoid exposing what they are doing to public scrutiny, they legislated and appropriated ever less in public, and increasingly put Congress’ output into continuing resolutions or omnibus bills, amounting to trillions of dollars and thousands of pages, impossible for representatives and senators to read, and presented to them as the only alternative to “shutting down the government.” This—now the U.S government standard operating procedure—enables the oligarchy’s “stakeholders” to negotiate their internal arrangements free from responsibility to citizens. It is the practical abolition of Article I section 9—and of the Magna Carta itself.

In the 21st century, the American people’s trust in government plummeted as they—on the political Left as well as on the Right—realized that those in power care little for them. As they watched corporate and non-profit officials trade places with public officials and politicians while getting much richer, they felt impoverished and disempowered. Since the ruling class embraced Republicans and Democrats, elections seemed irrelevant. The presidential elections of 2008 and 2012 underlined that whoever won, the same people would be in charge and that the parceling out of wealth and power among stakeholders would continue.

Americans on the Right were especially aggrieved because the oligarchy had become culturally united in disdain for Western civilization in general and for themselves in particular. The cultural warfare it waged on the rest of America inflamed opposition. But it also diluted its own focus on solidifying profitable arrangements.

By 2016, America was already well into the classic cycles of revolution. The atrophy of institutions, the waning of republican habits, and the increasing, reciprocal disrespect between classes that have less in common culturally, dislike each other more, and embody ways of life more different from one another, than did the 19th century’s Northerners and Southerners precluded returning to traditional republican life. The election would determine whether the oligarchy could consolidate itself. More important, it would affect the speed by which the revolutionary vortex would carry the country, and the amount of violence this would involve.

The Trump Catalyst

By 2015, the right side of America’s challenge to the budding oligarchy was inevitable. Trump was not inevitable. Senator Ted Cruz (R-Texas) had begun posing a thorough challenge to the “stakeholders” most Americans disrespected. Candidate Trump was the more gripping showman. His popularity came from his willingness to disrespect them, loudly. Because the other 16 Republican candidates ran on different bases, none ever had a chance. Inevitably, victory in a field so crowded depended on when which minor candidate did or did not withdraw. There never was a head-to-head choice between Trump and Cruz.

Trump’s candidacy drew the ferocious opposition it did primarily because the entire ruling class recognized that, unlike McCain in 2008 and Romney in 2012, he really was mobilizing millions of Americans against the arrangements by which the ruling class live, move, and have their being. Since Cruz’s candidacy represented the same threat, it almost certainly would have drawn no less intense self-righteous anger. Nasty narratives could have been made up about him out of whole cloth as easily as about Trump. 

But Trump’s actual peculiarities made it possible for the oligarchy to give the impression that its campaign was about his person, his public flouting of conventional norms, rather than about the preservation of their own power and wealth. The principal consequence of the ruling class’ opposition to candidate Trump was to convince itself, and then its followers, that defeating him was so important that it legitimized, indeed dictated, setting aside all laws, and truth itself.

Particular individuals had never been the oligarchy’s worry. In 2008, as Barack Obama was running against Hillary Clinton and John McCain—far cries from Trump—he pointed to those Americans who “cling to God and guns” as the problem’s root. Clinton’s 2016 remark that Trump’s supporters were “a basket of deplorables,”—racists, sexists, homophobes, etc.—merely voiced what had long been the oligarchy’s consensus judgment of most Americans. For them, pushing these Americans as far away as possible from the levers of power, treating them as less than citizens, had already come to define justice and right. 

Donald Trump—his bombastic, hyperbolic style, his tendency to play fast and loose with truth, even to lie as he insulted his targets—fit perfectly the oligarchy’s image of his supporters, and lent a color of legitimacy to the utterly illegitimate collusion between the oligarchy’s members in government and those in the Democratic Party running against Trump.

Thus did the FBI and CIA, in league with the major media and the Democratic Party, spy on candidate Trump, concocting and spreading all manner of synthetic dirt about him. Nevertheless, to universal surprise, he won, or rather the oligarchy lost, the 2016 election.

The oligarchy’s disparate members had already set aside laws, truth, etc. in opposition to Trump. The realization that the presidency’s awesome powers now rested in his hands fostered a full-court-press #Resistance. Trump’s peculiarities helped make it far more successful than anyone could have imagined.

“Dogs That Bark Do Not Bite”

Applying this observation to candidate Trump’s hyperbole suggested that President Trump might suffer from what Theodore Roosevelt called the most self-destructive of habits, combining “the unbridled tongue with the unready hand.” And, in fact, President Trump neither fired and referred for prosecution James Comey or the other intelligence officials who had run the surveillance of his campaign. He praised them, and let himself be persuaded to fire General Michael Flynn, his national security advisor, who stood in the way of the intelligence agencies’ plans against him. Nor did he declassify and make public all the documents associated with their illegalities. 

Four years later, he left office with those documents still under seal. He criticized officials over whom he had absolute power, notably CIA’s Gina Haspel who likely committed a crime spying on his candidacy, but left them in office. Days after his own inauguration, he suffered the CIA’s removal of clearances from one of his appointees because he was a critic of the Agency. Any president worthy of his office would have fired the entire chain of officials who had made that decision. Instead, he appointed to these agencies people loyal to them and hostile to himself.

He acted similarly with other agencies. His first secretary of state, secretary of defense, and national security advisor mocked him publicly. At their behest, in August 2017, he gave a nationally televised speech in which he effectively thanked them for showing him that he had been wrong in opposing ongoing war in the Middle East. He railed against Wall Street but left untouched the tax code’s “carried interest” provision that is the source of much unearned wealth. He railed against the legal loophole that lets Google, Facebook, and Twitter censor content without retribution, but did nothing to close it. Already by the end of January 2017, it was clear that no one in Washington needed to fear Trump. By the time he left office, Washington was laughing at him.

Nor did Trump protect his supporters. For example, he shared their resentment of being ordered to attend workplace sessions about their “racism.” But not until his last months in office did he ban the practice within the federal government. Never did he ban contracts with companies that require such sessions.

Thus, as the oligarchy set about negating the 2016 electorate’s attempt to stop its consolidation of power, Trump had assured them that they would neither be impeded as they did so nor pay a price. Donald Trump is not responsible for the oligarchy’s power. But he was indispensable to it.

#TheResistance rallied every part of the ruling class to mutually supporting efforts. Nothing encourages, amplifies, or seemingly justifies extreme sentiments as does being part of a unanimous chorus, a crowd, a mob—especially when all can be sure they are acting safely, gratuitously. Success supercharges them. #TheResistance fostered the sense in the ruling class’ members that they are more right, more superior, and more entitled than they had ever imagined. It made millions of people feel bigger and better about themselves than they ever had.

Logic and Dysfunction

Disdain for the “deplorables” united and energized parts of American society that, apart from their profitable material connections to government, have nothing in common and often have diverging interests. That hate, that determination to feel superior to the “deplorables” by treading upon them, is the “intersectionality,” the glue that binds, say, Wall Street coupon-clippers, folks in the media, officials of public service unions, gender studies professors, all manner of administrators, radical feminists, race and ethnic activists, and so on. #TheResistance grew by awakening these groups to the powers and privileges to which they imagine their superior worth entitles them, to their hate for anyone who does not submit preemptively.

Ruling-class judges sustained every bureaucratic act of opposition to the Trump Administration. Thousands of identical voices in major media echoed every charge, every insinuation, non-stop and unquestioned. #TheResistance made it ruling-class policy that Trump’s and his voters’ racism and a host of other wrongdoing made them, personally, illegitimate. In any confrontation, the ruling class deemed these presumed white supremacists in the wrong, systemically. By 2018, the ruling class had effectively placed the “deplorables” outside the protection of the laws. By 2020, they could be fired for a trifle, set upon in the streets, prosecuted on suspicion of bad attitudes, and even for defending themselves.

Because each and every part of the ruling coalition’s sense of what may assuage its grievances evolves without natural limit, this logic is as insatiable as it is powerful. It is also inherently destructive of oligarchy.

Enjoyment of power’s material perquisites is classic oligarchy’s defining purpose. Having conquered power over the people, successful oligarchies foster environments in which they can live in peace, productively. Oligarchy, like all regimes, cannot survive if it works at cross-purposes. But the oligarchy that seized power in America between 2016 and 2020 is engaged in a never-ending seizure of ever more power and the infliction of ever more punishment—in a war against the people without imaginable end. Clearly, that is contrary to what the Wall Street magnates or the corps of bureaucrats or the university administrators or senior professors want. But that is what the people want who wield the “intersectional” passions that put the oligarchy in power.

As the oligarchy’s every part, every organ, raged against everything Trump, it made itself less attractive to the public even as Trump’s various encouragements of economic activity were contributing to palpable increases in prosperity.

Hence, by 2019’s end, Trump was likely to win reelection. Then came COVID-19.

The COVID Fortuna

The COVID-19 virus is no plague. Though quite contagious, its infection/fatality rate (IFR), about 0.01 percent, is that of the average flu, and its effects are generally so mild that most whom it infects never know it. 

Like all infections, it is deadly to those weakened severely by other causes. It did not transform American life by killing people, but by the fears about it that our oligarchy packaged and purveyed. Fortuna, as Machiavelli reminds us, is inherently submissive to whoever bends her to his wishes. The fears and the strictures they enabled were not about health—if only because those who purveyed and imposed them did not apply them to themselves. They were about power over others.

COVID’s politicization began in February 2020 with the adoption by the World Health Organization—which is headed by an Ethiopian bureaucrat beholden to China—and upon recommendation of non-scientist Bill Gates, of a non-peer-reviewed test for the infection. The test’s chief characteristic is that its rate of positives to negatives depends on the number of cycles through which the sample is run. More cycles, more positives. Hence, every test result is a “soft” number. Second, the WHO and associated national organizations like the U.S. Centers for Disease Control reported COVID’s spread by another “soft” number: “confirmed cases.” That is, sick persons who tested positive for the virus. 

When this number is related to that of such persons who then die, the ratio—somewhat north of 5 percent—suggests that COVID kills one out of 20 people it touches. But that is an even softer number since these deaths include those who die with COVID rather than of it, as well as those who may have had COVID. Pyramiding such soft numbers, mathematical modelers projected millions of deaths. Scary for the unwary, but pure fantasy.

For example, the U.S. Institute for Health Metrics and Evaluation (IHME), which modeled the authoritative predictions on which the U.S. lockdowns were based, also predicted COVID-19 deaths for Sweden, which did not lock down. On May 3, the IHME predicted that Sweden would suffer 2,800 COVID deaths a day within the next two weeks. The actual number was 38. Reporting on COVID has never ceased to consist of numbers as scary as they are soft.

Literate persons know that, once an infectious disease enters a population, nothing can prevent it from infecting all of it, until a majority has developed antibodies after contracting it—so-called community immunity or herd immunity. But fear leads people to empower those who promise safety, regardless of how empty the promises. The media pressed governments to do something. The Wall Street Journal’s Peggy Noonan screamed: “don’t panic is terrible advice.” The pharmaceutical industry and its Wall Street backers salivated at the prospect of billions of government money for new drugs and vaccines. Never mind the little sense it makes for millions of people to accept a vaccine’s non-trivial risk to protect against a virus with trivial consequences for themselves. All manner of officials yearned to wield unaccountable power.

Because the power to crush the general population’s resistance to itself is the oligarchy’s single-minded focus, it was able to bend fears of COVID to that purpose. Thus, it gathered more power with more consequences than the oligarchs could have imagined.

But only President Trump’s complaisance made this possible. His message to the American people had been not to panic, be mindful of the scientific facts—you can’t stop it, and it’s not that bad—while mitigating its effects on vulnerable populations. But on March 15, Trump bent, and agreed to counsel people to suspend normal life for two weeks to “slow the spread,” so that hospitals would not be overwhelmed. Two weeks later, the New York Times crowed that Trump, having been told “hundreds of thousands of Americans could face death if the country reopened too soon,” had been stampeded into “abandoning his goal of reopening the country by Easter.” He agreed to support the “experts’” definition of what “soon” might mean. By accrediting the complex of government, industry, and media’s good faith and expertise, Trump validated their plans to use COVID as a vehicle for enhancing their power.

Having seized powers, the oligarchs used them as weapons to disrupt and disaggregate the parts of American society they could not control.

The economic effects of lockdowns and social distancing caused obvious pain. Tens of millions of small businesses were forced to close or radically to reduce activity. More than 40 million Americans filed claims for unemployment assistance. Uncountable millions of farmers and professionals had their products and activities devalued. Millions of careers, dreams that had been realized by lifetimes of work, were wrecked. Big business and government took over their functions. Within nine months, COVID-19 had produced 28 new billionaires.

Surplus and scarcity of food resulted simultaneously because the lockdowns closed most restaurants and hotels. As demand shifted in ways that made it impossible for distribution networks and processing plants to adjust seamlessly, millions of gallons of milk were poured down drains, millions of chickens, billions of eggs, and tens of thousands of hogs and cattle were destroyed, acres of vegetables and tons of fruit were plowed under. Prices in the markets rose. Persons deprived of work with less money with which to pay higher prices struggled to feed their families. This reduced countless self-supporting citizens to supplicants. By intentionally reducing the supply of food available to the population, the U.S. government joined the rare ranks of such as Stalin’s Soviet Union and Castro’s Cuba.

But none of these had ever shut down a whole nation’s entire medical care except for one disease. Hospitals stood nearly empty, having cleared the decks for the (ignorantly) expected COVID flood. Emergency rooms were closed to the poor people who get routine care there. Forget about dentistry. Most Americans were left essentially without medical care for most of a year. Human bodies’ troubles not having taken a corresponding holiday, it is impossible to estimate how much suffering and death this lack of medical care has caused and will cause yet.

The oligarchy’s division of all activity into “essential”—meaning permitted—and “nonessential”—to be throttled at will—had less obvious but more destructive effects. Private clubs, as well as any and all gatherings of more than five or 10 people, were banned. Churches were forbidden to have worship services or to continue social activities. The “social distancing” and mask mandates enforced in public buildings and stores, and often on the streets, made it well-nigh impossible for people to communicate casually. Thus, was that part of American society that the oligarchy did not control directly disarticulated, and its members left alone to face unaccountable powers on which they had to depend.

Meanwhile, the media became the oligarchy’s public relations department. Very much including ordinary commercial advertising, it hammered home the oligarchy’s line that COVID restrictions are good, even cool. These restrictions reduced the ideas available to the American people to what the mass media purveyed and the social media allowed. Already by April 2020, these used what had become near-monopoly power over interpersonal communications to censor such communications as they disapproved. Political enforcers took it upon themselves even to cancel statements by eminent physicians about COVID that they judged to be “misleading.” Of course, this betrayed the tech giants’ initial promise of universal access. It is also unconstitutional. (In Marsh v. Alabama, decided in 1946, the Supreme Court barred private parties from acting as de facto governments). Since these companies did it in unison, they also violated the 1890 Sherman Antitrust Act. But the ruling class that had become an oligarchy applauded their disabling whatever might be conducive to conservatives’ interests and inconvenient to their own candidates.

Private entities wielding public powers in coordination with each other without having to observe any of government’s constitutional constraints is as good a definition of oligarchy as there is. Oligarchy had increasingly taken power in the buildup to the 2020 election. In its aftermath, it would try to suffocate America.

Sovereignty of the Vote Counters

The oligarchy’s proximate objective, preventing the 2020 presidential election from validating the previous one’s results, overrode all others. The powers it had seized under COVID’s cover, added to the plethora that it had exercised since the 2016 campaign’s beginning, had surely cowered some opposition. But as November 2020 loomed, no one could be sure how much it also had energized. 

Few people were happy to be locked down. It was a safe bet that not a few were unhappy at being called systemically racist. The oligarchy, its powers notwithstanding, could not be sure how people would vote. That is why it acted to take the presidential election’s outcome out of the hands of those who would cast the votes and to place it as much as possible in the hands of its members who would count the votes.

Intentionally, traditional procedures for voting leave no discretion to those who count the votes. Individuals obtain and cast ballots into a physical or electronic box only after showing identification that matches their registration. Ballot boxes are opened and their contents counted by persons representing the election’s opposing parties. Persons registered to vote might qualify to vote-by-mail by requesting a ballot, the issuance and receipt of which is checked against their registration. Their ballots are counted in the same bipartisan manner.

The Democratic Party had long pressed to substitute universal voting by mail—meaning that ballots would be sent to all registered voters, in some states to anyone with a driver’s license whether they asked for them or not and regardless of whether these persons still lived at the address on the rolls or were even alive. The ballots eventually would arrive at the counting centers, either through the mail, from drop boxes, or through “harvesters” who would pick them up from the voters who fill them out, and who may even help them to fill them out. Security, if any, would consist of machine-matching signatures on the ballot and on the envelope in which it had come. The machine’s software can be dialed to greater or lesser sensitivity.

But doing away with scrutiny of ballots counted by representatives of the election’s contenders removes the last possibility of ensuring the ballot had come from a real person whose will it is supposed to represent. Once the link between the ballot and the qualified person is broken, nothing prevents those in charge of the electoral process from excluding and including masses of ballots as they choose. The counters become the arbiters.

Attorney General William Barr pointed out the obvious: Anyone, in America or abroad, can print up any number of ballots, mark them, and deliver them for counting to whoever is willing to accept them and run them through their machines. Since the counters usually dispose of the envelopes in which ballots arrive—thus obviating any possibility of tracing the ballot’s connection to a voter—they may even dispense of the fiction that there had ever been any signed envelopes. That is especially true of late-found ballots. Who knows where they came from? Who cares to find out?

Only in a few one-party Democratic states was universal vote-by-mail established by law. Elsewhere, especially in the states sure to be battlegrounds in the presidential election, mail-in voting was introduced by various kinds of executive or judicial actions. Questions of right and wrong aside, the Constitution’s Article II section 1’s words—“Each State shall appoint, in such Manner as the Legislature thereof may direct”—makes such actions unconstitutional on their face. Moreover, in these states—Georgia, Pennsylvania, Michigan, and Wisconsin—the counting of votes in the most populous counties is firmly in the hands of Democratic Party bosses with a well-documented history of fraud.

To no one’s surprise, the 2020 presidential election was decided by super-majorities for the Democratic candidate precisely from these counties in these states. Yes, Trump’s percentage of the vote fell in certain suburbs. But Trump received some 11 million more votes in 2020 than four years earlier, and nearly doubled the share of votes he received from blacks. The Democrats’ gain of some 15 million votes came exclusively from mail-in ballots, and their victory in the Electoral College came exclusively from the supermajorities piled up in these corrupt counties—the only places where Trump’s share of the black vote was cut by three-quarters. Did people there really think so differently?

This is not the place to recount the list of affidavits sworn under penalty of perjury by persons who observed ballot stuffing, nor the statistical anomaly of successive batches of votes that favored Biden over Trump by precisely the same amounts, of un-creased (i.e., never mailed) ballots fed into counting machines, nor the Georgia video of suitcases of ballots being taken from under tables and inserted into counting machines after Republican observers had been ousted. Suffice it to note that references to these events have been scrubbed from the Internet. It is more important to keep in mind that, in America prior to 2020, sworn affidavits that crimes have been committed had invariably been probable cause for judicial, prosecutorial, or legislative investigations. But for the first time in America, the ruling class dismissed them with: “You have no proof!” A judge (the sister of Georgia’s Stacey Abrams) ruled that even when someone tells the U.S. Postal Service they have moved, their old address is still a lawful basis for them to cast a ballot. Certainly, proof of crime is impossible with such judges and without testimony under oath, or powers of subpoena.

Just as important, Republicans in general and the Trump White House in particular bear heavy responsibility for failing to challenge the patent illegality of the executive actions and consent decrees that enabled inherently insecure mail-in procedures in real-time, as they were being perpetrated in key states. No facts were at issue. Only law. The constitutional violations were undeniable.

Pennsylvania et. al. answered Texas’s late lawsuit by arguing it demanded the invalidation of votes that had been cast in good faith. True. But Texas argued that letting stand the results of an election carried out contrary to the Constitution devalued the votes cast in states such as Texas that had held the election in a constitutional manner. Also true. Without comment, the Supreme Court chose to privilege the set of voters on the oligarchy’s side over those of their opponents. Had the lawsuit come well before the election, no such choice would have existed. Typically, the Trump Administration substituted bluster for action.

The Oligarchy Rides its Tigers

Winning the 2020 election had been the objective behind which the oligarchy had coalesced during the previous five years. In 2021, waging socio-political war on the rest of America is what the oligarchy is all about. 

The logic of hate and disdain of ordinary Americans is not only what binds the oligarchy together. It is the only substitute it has for any moral-ethical-intellectual point of reference. Donald Trump’s impotent, inglorious reaction to his defeat offered irresistible temptations to the oligarchy’s several sectors to celebrate victory by vying to hurt whoever had supported the president. But permanent war against some 74 million fellow citizens is a foredoomed approach to governing.

The Democratic Party had promised a return to some kind of “normalcy.” Instead, its victory enabled the oligarchy’s several parts to redefine the people who do not show them due deference as “white supremacists,” “insurrectionists,” and Nazis—in short, as some kind of criminals—to exclude them from common platforms of communication, from the banking system, and perhaps even from air travel; and to set law enforcement to surveil them in order to find bases for prosecuting them. Neither Congress nor any state’s legislature legislated any of this. Rather, the several parts of America’s economic, cultural, and political establishment are waging this war, uncoordinated but well-nigh unanimously.

Perhaps most important, they do so without thought of how a war against at least some 74 million fellow citizens might end. The people in the oligarchy’s corporate components seem to want only to adorn unchallenged power with a reputation for “wokeness.” For them, causing pain to their opponents is a pleasure incidental to enjoying power’s perquisites. The Biden family’s self-enrichment by renting access to influence is this oligarchy’s standard.

But the people who dispense that reputation—not just the professional revolutionaries of Antifa and Black Lives Matter, but “mainstream” racial and gender activists and self-appointed virtue-crats, have appetites as variable as they are insatiable. For them, rubbing conservative America’s faces in excrement is what it’s all about. A Twitter video viewed by 2.6 million people urges them to form “an army of citizen detectives” to ferret out conservatives from among teachers, doctors, police officers, and “report them to the authorities.” No doubt, encouraged by President Biden’s characterization of opponents as “domestic terrorists,” any number of “authorities” as well as private persons will find opportunities to lord it over persons not to their taste. This guarantees endless clashes, and spiraling violence.

Joseph Biden, Kamala Harris, and the people they appoint to positions of official responsibility are apparatchiks, habituated to currying favor and pulling rank. They have neither the inclination nor the capacity to persuade the oligarchy’s several parts to agree to a common good or at least to a modus vivendi among themselves, never mind with conservative America. This guarantees that they will ride tigers that they won’t even try to dismount.

At this moment, the oligarchy wields an awesome complex of official and unofficial powers to exclude whomever it chooses from society’s mainstream. Necessarily, however, exclusions cut both ways. Invariably, to banish another is to banish one’s self as well. Google, Facebook, and Twitter let it be known that they would exclude anything with which they disagree from what had become the near-universal means of communication. They bolstered that by colluding to destroy their competitor, Parler. Did they imagine that 74 million Americans could find no means of communicating otherwise? Simon and Schuster canceled a book by Senator Josh Hawley (R-Mo.) critical of communications monopolies. Did its officials imagine that they would thereby do other than increase the book’s eventual sales, and transfer some of their customers to Hawley’s new publisher? The media effectively suppressed inconvenient news. Did they imagine that this would prevent photos of Black Lives Matter professionals in the forefront of the January 6 assault on the U.S. Capitol from reaching the public?

In sum, intending to relegate conservative America to society’s servile sidelines, the oligarchy’s members drew a clear, sharp line between themselves and that America. By telling conservative Americans “these institutions and corporations, are ours, not yours,” they freed conservative America of moral obligations toward them and themselves. By abandoning conservative America, they oblige conservative America to abandon them and seek its own way.

Clarity, Leadership, and Separation

To think of conservative America’s predicament as an opportunity is as hyperbolic as it was for Machiavelli to begin the conclusion of The Prince by observing that “in order to know Moses’ virtue it was necessary that the people of Israel be slaves in Egypt, and to know the greatness of Cyrus’s spirit that the Persians be oppressed by the Medes, and to know the excellence of Theseus, that the Athenian people be dispersed, so at the present, in order to know the virtue of an Italian spirit it was necessary that Italy reduce herself to the conditions in which she is at present . . .” 

Machiavelli’s lesson is that the clarity of situations such as he mentions, and such as is conservative America’s following the 2020 election, is itself valuable. Clarity makes illusions of compromise untenable and points to self-reliant action as the only reasonable path. The people might or might not be, as he wrote, “all ready and disposed to follow the flag if only someone were to pick it up.” But surely, someone picking up the flag is the only alternative to servitude.

What, in conservative America’s current predicament, might it mean to “pick up the flag?” Electoral politics remains open to talented, courageous, ambitious leadership. In Florida and South Dakota, Governors Ron DeSantis and Kristi Noem have used their powers to make room for ways of life different from and more attractive than that in places wholly dominated by the oligarchy. Texas and Idaho as well attract refugees from such as California and New York by virtue of such differences with life there as their elected officials have been able to maintain. Governmental and corporate pressures on such states to conform to the oligarchy’s standards, sure to increase, are opportunities for their officials to lead their people’s refusal to conform by explaining why doing this is good, and by personally standing in the way. They may be sure that President Kamala Harris would not order federal troops to shoot at state officials for closing abortion clinics or for excluding men from women’s bathrooms.

For more than a generation, a majority of Americans have expressed growing distrust of, and alienation from, the establishment. The establishment, not Donald Trump, made this happen. That disparate majority, in many ways at cross purposes with itself, demands leadership. Pollster Patrick Caddell’s in-depth study of the American electorate, which he titled “We Need Smith,” showed how the themes that made it possible for the hero of the 1939 movie “Mr. Smith Goes to Washington” to prevail against the establishment then are even more gripping now and appeal to a bigger majority. Trump was a bad copy of Mr. Smith.

More than ever, an audience beyond the 74 million Americans who voted for Trump hungers for leadership. The oligarchy came together by ever more vigorously denigrating and suppressing these deplorables. Already before the 20th century’s turn, the FBI and some elements in the Army and the Justice Department had concluded that they are somehow criminal, and that preparations should be made to treat them as such. The official position of the administration taking power after the 2020 election is that domestic terrorism from legions of “white supremacists” is the primary threat facing America. No wonder those so designated for outlawry demand protection.

The path to electoral leadership is straightforward. Whoever would lead the deplorables-plus must explain their cause to friend and foe, make it his own, and grow it by leading successful acts of resistance. 

Increasingly, conservative Americans live as if under occupation by a hostile power. Whoever would lead them should emulate Charles de Gaulle’s 1941 basic rule for la résistance: refrain from individual or spontaneous acts or expressions that produce only martyrs. But join with thousands in what amount to battles to defeat the enemy’s initiatives, weaken his grip on power, and prepare his defeat. Thus, an aspirant to the presidency in 2024, in the course of debunking the narrative by which the oligarchy seized so much power over America, might lead millions to violate restrictions placed on those who refuse to wear masks. Or, as he pursues legislative and judicial measures to abolish the compulsory racial and gender sensitivity training sessions to which public and private employees are subjected, he might organize employees in a given sector unanimously to stay away from them in protest. They can’t all be fired or held back.

Such a persuasive prospective president, or president, could finish the process that, beginning circa 2010, initiated the process of reshaping the Republican Party into something like Caddell’s Mr. Smith would have personified.

Electoral politics, however, is the easy part. Major corporations, private and semi-private institutions such as schools, publishing houses, and media, are the oligarchy’s deepest foundations. These having become hostile, conservative Americans have no choice but to populate their own. This is far from impossible. 

Sorting ourselves out into congenial groups has been part of America’s DNA since 1630, when Roger Williams led his followers out of Massachusetts to found Providence Plantations. In the 19th century, the Mormons left unfriendly environments to establish their own settlements. Since 1973, Americans who believe in unborn children’s humanity have largely ceased to intermarry with those who do not. Nobody decided this should happen. It is in the logic of diverging cultures. 

As American primary and secondary education’s dysfunction became painfully apparent, parents of all races have fled the public schools as fast as they could. Businesses have been fleeing the Rust Belt for the Sun Belt for generations. When Democratic governors and mayors used COVID to make life difficult in their jurisdictions, people moved out of them. When Twitter’s censorship of conservatives became undeniable, Parler added customers by the hundreds of thousands each day. Facebook and Twitter’s stock lost $50 billion in a week. Much more separation follows from the American people’s diverging cultures.

As conservative America sorts itself out from oligarchy’s social bases, it may be able to restore something like what had existed under the republic. Effectively, two regimes would have to learn to coexist within our present boundaries. But that may be the best, freest, arrangement possible now for the United States.

Thursday, February 4, 2021

Down the Slippery Slope of Media control

We are living an amazing time of accelerated history when democracy is being destroyed in front of our eyes, propaganda displayed as news, witnessing a market rising into irrelevance while the economy falter under the strain of a not-so-deadly virus used to justify whatever control measure our governments envy their Chinese counterparts. Short of a fast approaching global crash, within a few short years, we will all be living under Chinese-like conditions. Not very communist but very totalitarian. 

George Orwell in his foresight made only one mistake: The date of is novel should have been 2024, not 1984! 

Here's another step down the slippery slope to total control.

Authored by David Sacks via Persuasion.Community,

As the apex predators of capitalism, hedge funds are accustomed to raking in billions by driving companies into the ground and feasting on the carcasses. So there was widespread satisfaction last week when members of an online discussion group called WallStreetBets started beating the Wall Street bully boys at their own game. Ringleaders of the group noticed that hedge funds had taken a short position in the videogame retailer GameStop that far exceeded the number of shares available to trade. Motivated as much by revenge as by profit, these influencers in the group encouraged the 2.7 million members (since risen to around 8 million) to purchase the stock in order to drive the price higher and create a massive short squeeze. This quickly became a movement with a cause similar to that of Occupy Wall Street, except much more effective because it hit the intended target where they would feel it the most, in the wallet. “The only way to beat a rigged game,” one WallStreetBets leader said, “is to rig it even harder.” 

GameStop stock, which closed at $17.69 a share on Jan. 8, shot up to $347.51 by the close last Wednesday. With combined losses of almost $20 billion, hedge funds were on the ropes and close to bleeding out, selling their longs in an increasingly futile effort to cover their shorts. One fund, Melvin Capital, lost over half its value and had to be bailed out by hedge fund sugar daddies Ken Griffin (Citadel) and Steve Cohen (Point 72). Another fund, Citron, was teetering on the brink of collapse. All this outsider army needed to win was the continued ability to communicate with each other online, and their collective ability to keep piling into the “Buy” side of the trade. Within hours, they would be hobbled on the first front and crippled on the second. 

The Empire Strikes Back

First, the digital distribution platform Discord banned the WallStreetBets account after the close Wednesday for hate speech, glorifying violence, and spreading misinformation.” (For a moment, it looked like Reddit had also banned the group, but they resisted pressure to do so.) If the quoted justification sounds familiar, it’s nearly identical to the one given by Google, Apple, and Amazon for deplatforming Parler just three weeks earlier. Echoing Amazon, Discord said it had sent the group repeated warnings about objectionable content before deciding, on that day of all days, to shut them down. 

Meanwhile, WallStreetBets investors were locked out of their trading accounts by online brokers such as Robinhood on Thursday morning. Based on new collateral requirements that it says were imposed by an industry consortium, Robinhood forbade its users from buying GameStop and other stocks that WallStreetBets had identified as short squeeze opportunities. Users were allowed only to “close their positions”—in other words, to sell to the shorts desperate to buy. When angry users registered their disapproval by leaving over 100,000 one-star reviews of the Robinhood app in the Google Play Store, Google deleted them. 

Normal trading was allowed to resume Friday, but the hedge funds used their 24-hour sole ownership of the battlefield to fortify their positions, covering the most vulnerable shorts. Wall Street then sent in reinforcements, as new short positions were taken at these high price levels, virtually guaranteed to pay out when, inevitably, the air leaks out of the balloon. Faced with a game that, for once, they couldn’t rig in their favor, it appeared that the insiders tipped the board over and started a new game. As a massively decentralized online group of scrappy outsiders, the only tools at WallStreetBets’ disposal were online trading and social networking. Both were frozen at the crucial moment, and the hedge fund insiders were let off the hook. The weaponization of censorship is a big part of the reason why. 

Down the Slippery Slope

Some of us warned of a slippery slope when Parler was taken down and a sitting president was systematically ghosted from every online speech platform. But we could not have foreseen how slippery the slope would be, or how fast we would slide down it. We were told that the curbs on speech of President Trump and his supporters were necessary to prevent further “insurrection” and protect the peaceful transition of power. However, much like the troops and barricades that still ring the Capitol, these speech restrictions remain in place well after the transition of power has occurred. The censorship power is always justified in response to a genuine outrage or crisis, but it is rarely relinquished once the threat passes. Rather it gets weaponized to protect powerful, connected insiders, as the GameStop fiasco illustrates.

How do we suppose Discord chose that moment to enforce its “Community Guidelines” against WallStreetBets? Almost certainly, one of the hedge funds whose ox was being gored combed through their message boards looking for anything that might violate the terms of service. And surely they found it, as these boards contain the same raunchy language you would hear if you visited any trading floor or boiler room on Wall Street. They presumably reported the content to Discord, which took the group down. 

Did Discord warn WallStreetBets of content violations before last Wednesday? I’m sure they did. Amazon sent such a warning letter to Parler as well. Frankly, such a letter could be, and likely is, sent to every large message board on the web. The founder of a user-generated content site described it to me as “the One Percent Problem.” Every user-generated content site will have a small percentage of offensive material that gets through, no matter how many content moderators are hired. For example, Facebook, Twitter, and YouTube allowed far more content advocating for and planning the Capitol riot than Parler. But instead of acknowledging this, they were eager to blame the upstart, which had recently taken over the top spot in the social networking category in the app store. Scapegoating Parler served the dual purpose of deflecting blame and squashing a competitor.

Critics of social networks insist that these sites simply need to double down on censorship in order to finally rid us of problematic speech. But that ignores how social media moderation actually works. Algorithms set to recognize keywords capture only a small fraction of problematic posts, leaving millions of posts for humans to review. The work is so voluminous that it’s outsourced to far-flung locales where English may not even be the first language. Low-level employees must decipher complicated guidelines while navigating our increasingly Byzantine world of political and cultural hot-buttons. Mistakes are inevitable, and the harder a company tightens the standards to get the One Percent Problem down to 0.1 or 0.01 percent, the more undeserving accounts—from Ron Paul to the Socialist Equality Party—will be swept up in the dragnet. With the Town Square now digitized, centralized, and privatized in the hands of a cartel of Big Tech companies, the protections of the First Amendment no longer apply. 

Insiders Vs. Outsiders

Censorship is about who has the power to censor, and what checks are placed upon that power. Right now, tech companies have all the power, and they exercise it as a like-minded cartel. When we see Alexandria Ocasio-Cortez and Ted Cruz voice similar concerns over what happened to WallStreetBets last week, we should realize that the politics of this issue in the post-Trump era will no longer divide along an axis of Left and Right, but of insider and outsider. 

Elizabeth Warren, when she started landing blows against Wall Street after the 2008 financial crisis, met with President Obama’s economics adviser, the former treasury secretary and Harvard president Larry Summers. He presented her with a choice: “I could be an insider or I could be an outsider,” she recalled in her 2014 memoir, A Fighting Chance. “Outsiders can say whatever they want. But people on the inside don’t listen to them. Insiders, however, get lots of access and a chance to push their ideas. People—powerful people—listen to what they have to say. But insiders also understand one unbreakable rule: They don’t criticize other insiders.”  

It’s precisely this insider-protection scheme that the internet and social media have most disrupted. Insiders are massively powerful but few in number. Outsiders have always been numerous but unorganized. Social networking and online organizing have given the outsiders real power to effect change, and finally register their disgust at the way incompetent elites protect each other. The elites of Big Business, Big Media, Wall Street, and Washington are terrified of this, and will leverage any censorship power to keep the outsiders at bay. 

The Real “Big Lie”

After the storming of the Capitol building on Jan. 6, we heard a lot about the “Big Lie” perpetrated by Trump and his allies that the election was “stolen.” In reality, this narrative never got far. It was rejected by the media (including Fox News), thrown out by the courts, labeled by social networks as “disputed,” and dismissed by politicians, including Trump’s own vice president. Yes, some far-right groups like the Proud Boys and Oath Keepers came to Washington to commit acts of violence, but they were roundly denounced. For a Big Lie to be successful, it has to have buy-in from the people in power, moneyed interests, the narrative-framers in the media generally, all of whom have to benefit from the lie and therefore repeat it. 

But what issue could possibly unite all of these constituencies? For several years, elites in the media, government, and now finance have denounced social media as a tool for propaganda, disinformation and hate. Social media was to blame for the Russian disinformation that supposedly elected Trump in 2016. Social media was fingered as the main culprit in an “insurrection” that attempted to overthrow an election. And now, WallStreetBets is accused without evidence of spreading hate and misinformation. We’ve even been told that social media is worse than cigarettes

What all of our elites have in common is a reason to fear social media. Legacy media hates social media for disrupting their business models and competing with them for influence. Wall Street has just learned that organized social networks can threaten their control of the Monopoly board. The party in power benefits from increased censorship and repression of political dissent by labeling it “hate speech” and “disinformation.” Ironically, the tech oligarchs benefit the least from the censorship they impose, but the threat of break-up keeps them in line. 

If there is a Big Lie in American politics right now, it is the idea that censorship of social media is necessary to save democracy. In his book The Square and the Tower, the historian Niall Ferguson describes the age-old tension between hierarchies and networks—between the rulers in the Tower and the people in the Square. The last thing that the rulers want to see when they look down is a teeming throng in the Square. And nobody benefits more than the rulers from malleable censorship rules that are easily weaponized to restrict, disrupt, or disband the Square. What the insiders fear is not the end of democracy, but the end of their control over it, and the loss of the benefits they extract from it. Ultimately, the battle over speech is just one aspect of a broader war for power amid a growing political realignment that is not Left versus Right, but rather insider versus outsider. Thanks to social media, the outsiders are threatening to replace who’s in the Tower, and the insiders have never been more scared.

 

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