Four weeks ago, Trump managed to pause (perhaps end?) a century long war between Thailand and Cambodia that had flared up with F16s, rocket attacks, drones, invasion, and hundreds of dead. He did it by threatening to block trade with both countries if they didn’t sign a ceasefire. Within the day, they did. Perhaps, all they needed was a good excuse to stop fighting. The peace has lasted four weeks, though nasty words continue to flow. Some 70,000 Buddhist monks are very appreciative.
Malaysian PM Anwar Ibrahim (center) hosted the peace talks in Putrajaya as chairman of the Asian regional block, Official Photo.
Thailand and Cambodia have had had significant empires with overlapping land claims going back to the days of the kingdom of Siam and the collapse of the Khmer empire. A peace treaty was concluded between 1904 and 1908, but it involved ill- drawn, conflicting French maps. Several major Buddhist temples are in the disputed areas; they appear to be part of Siam in the earlier map, but part of Cambodia in latter documents. Siam complained weakly about the later documents, perhaps signaling accent, or signaling that they had the weaker army.
The problem festered this way until WWII when Siam allied with Japan and took back the territory it claimed, plus some more. After Japan lost the war, French Cambodia took back the territory, but Siam / Thailand re-armed and re-took in when the French left. It didn’t help Cambodia’s claims that it collapsed into a rein of terror under the Khmer Rouge. As things stand, the International Court of justice favors Cambodia’s claims. Then again Thailand now has the larger army, and has used it to occupy the disputed areas.
Buddhist thank Trump for peace request he gets the Nobel Prize. Photo from USA Today. Sometimes all it takes is a hard push.
A May-July, 2025 flareup in fighting resulted in about 200 dead and/or captured, mostly in the area of the historic temples, plus 135,000 displaced. The Malaysian PM, Anwar Ibrahim, tired to achieve peace, and on July 28, 2025 Donald Trump stepped in and calling both leaders in the midst of tariff negotiations and informed them that they would be banned from US trade if they didn’t stop fighting. With Malaysian help, they signed a ceasefire that day. The presidents thanked Trump; 70,000 Buddhists marched and asked that he get the Nobel Prize. It’s the power of tariffs, and of personality.
Will the peace last? It has for four weeks now, and seems to be holding. The press downplays the significance saying that Trump only got involved because he wants the Nobel Prize. Maybe, but people are not dying who would be. Peace is good and surprisingly hard. I would not mind seeing Trump get the prize, shared with Ibrahim. My guess is that it was motivated more by ego than real hopes of gain. They were in a position to push effectively, and did so. The push was a convent excuse for sanity. A month later, Trump brokered another peace deal, this time between Armenia and Azerbaijan. The press isn’t impressed with this either, nor with Trump’s efforts to end the war in Ukraine; they’re upset over his efforts to reduce the crime rate in DC.
The Turks and Armenians have been at war for centuries. Perhaps the major event in the war was in the years leading to WWI. The Turks invaded the Armenian region of their empire, killing about 1 million. More recently, Armenia invaded Turkish Azerbaijan, taking territory including the Negorno Karabakh region, while killing and exiling 50,000. Armenia had allied in its fight with Iran and Russia while Azerbaijan had allied with Turkey and Israel. Fighting had continuing until last week when Trump signed a peace deal that involved the US private industry (Trump) building a corridor, modestly named the Trump Road for International Peace and Prosperity (TRIPP). No normal diplomat or investor would indulge in such a deal, and no normal person would commit to it. It seems certain to fail, but then again, it might bring peace to the region and money for Trump.
From the economist
The logic of the deal, and why it might work, is that the wars may have not been so much wars of religion, but wars of geography. The Armenian, Christian communities are dispersed within the Muslim Turkish and Azerbaijani communities. Without their help the Armenians can not communicate with each other nor sell or receive goods. Turkish and Azerbaijani communities are dispersed within Armenia and Iran. Azerbaijan is divided in half, while Negorno Karabakh is entirely within Azerbaijan. The proposed Trump Road would allow transit and trade. Trump and colleagues would to build and defend this road, allowing trade, in particular allowing the flow of oil and gas from eastern Azerbaijan to western, and perhaps even to Turkey, implied is also free trade with Negorno Karabakh. It seems good, and the leaders of Armenia and Azerbaijan have signed their agreement. As presented, the road would be Armenian territory, but would allow free transit, though not likely of weapons from Iran.
Official photo of the signing; Donald Trump (C), Azerbaijani President Ilham Aliyev (L), and Armenian Prime Minister Nikol Pashinyan (R), August 8, 2025.
Could it work? Trump is a magician, and sometimes he does what seems impossible. Still there is a lot that could go wrong. Even if this conflict isn’t religious, there are long simmering hatreds, and deep distrust. This is, at best couples therapy, and the one who typically loses is the peace maker. The Armenian Daily Journal has already complained that Armenia gets too little economic benefit, “just crumbs.” There is no way to please both sides, 100%.
There is also a trouble maker, Iran. Iran is in the middle of a 1000 year long religious war for control of the region. Iran sells oil and gas to Turkey and Syria, while funding revolutionaries, Hezboalh. They are not willing to see their trade displaced by Azerbaijan and the US. Iran’s leaders have threatened war to maintain their control. Iran was more threatening two months previously, but Trump punctured Iran’s nuclear program, and joined with Turkey and Israel in the removal of Hezbollah from Syria. Iran still has one card more, but it’s weaker than it was. As a member of BRICS, they have called on their BRICS allies, China, India, and Russia to help them keep the US out. So far, nothing. In a region like this, no normal person would get involved, but Trump is no normal person, and peace is good, if only for a few years (or weeks).
A remarkable book by Christopher Clark on WWI posits that WWI was an accident, entered into, by sleepwalk. That is, it was not brought on by the elaborate plan of an evil aggressor, Germany or Britain, acting for dominance or economic gain, but rather that many individuals precipitated the deadly conflict through a series of ever-more dangerous, unplanned steps. The great diplomats went on vacation following the June 28, 1914 assassination, and each minor actor felt a need to push for a previous status quo, emboldened by the certainty that nothing bad would happen, since none of the last acts had caused any serious harm, at least not to them. There was, in Clark’s view, a general numbness caused by earlier wars: in China and Russia, in Serbia and Albania, and by Italy’s invasion of Africa, and the fact that there had not been a major, deadly conflict since the Crimean war. In this environment, one nation shoving another was seen as normal conflict until a war broke out that killed millions and toppled four empires: the Russian, Austrian, German, and Ottoman.
Princip shoots Count Ferdinand, June 28, 914. Getty Immage.
Clark points out, too that the Serbs, the folks who started the war, benefited from it. They escaped from imperial control by Austria and from The Ottoman Empire. Self determination was the motivation for the assassination, and it worked too, for the Czechs, Croats, Poles, and communists. In just a few years, the former group got their own countries, and the communists took Russia, something that no one saw coming in June, 1914.
The key sleep-walk steps to war were as follows: In response to the assassination, and a decade of earlier insults, Austria-Hungary, demanded harsh cocessions from Serbia that Serbia found unacceptable. Austria Hungary, backed by Germany and Italy, declared war on Serbia. Russia then mobilized its troops for war with Germany, so Germany declared war on Russia. France, an ally of Russia, then mobilized for war with Germany, so on August 2 – 3, Germany declared war on France and invaded Luxembourg and Belgium. Why Luxembourg and Belgium — because they would not allow free transport of German troupes to attack France. This forced Great Britain to declare war on Germany, which, finally, on August 6, brought Austria-Hungary to declared war on Russia, and effectively on the rest of the Allies. Over the next few years, we (the US) were dragged in along with Japan, on our side.
What a mess, but I fear we may be sleepwalking to the same, grim altercation via our wars in Ukraine and Syria. As at the beginning of WWI, there are two big power alliances: NATO including The US and most of Europe, versus a BRICS alliance of Brazil, Russia, India, Iran, China, and South Africa, along with a few minor others. The alliances are now three years into a proxy war in Ukraine, and another one in Syria. So far the declared combatants are Russia vs Ukraine, and Turkey vs Syria, but both sides keeps harassing the other at a higher and higher pace. So far, the sleep-walk steps were that Russia invaded Crimea, in response to some insult, and then attempted to take Kiev. The NATO alliance responded provided limited weapons to Ukraine. But, as these proved insufficient, we (NATO) provided greater and more deadly weapons, plus some volunteer troops. Meanwhile Russia’s BRICS allies are selling drones and missiles into the conflict in return for Russian gold, wheat, and raw materials. One of us, perhaps Ukraine, then cut the RussianGerman gas pipeline, while China seems to have cut important communications cables in the Baltic Sea.
North Korea began sending troops, 12,000 apparently, to fight on the Russian side, while Biden has sent long-range missiles to be used for strikes deep into Russian territory, on logistic centers, train depots, food stores, airports, etc. Putin has threatened a nuclear response, but has done nothing so far beyond sending a few long range, hypersonic missiles against civilian targets and against Ukraine’s power grid. He’s lost some 600,000 Russians, and has lost control of Syria and Armenia, so he has reason to be upset. Ukraine has lost some 400,000, and is still losing territory, but is still demanding total victory, the removal of all Russian forces, including those in Crimea.
The fight has spread to Syria, where the US, Israel, and Turkey have bombed in recent days, something I would call an act of offensive war against a sovereign unstable government. It’s not totally unprevoked, of course. Syria and Iran had been attacking Israel for years from Lebanon, by way of Hezbollah jihadists. Recently Israel took out a major fraction of Hezbollah, and the jihadists (Sunni) seems to have gone back to Syria, and have removed Assad, Syria’s Shia president for life, with help from Turkey, another Sunni Moslem country. This too is an act of war. Assad retains a sliver on the coast where the Russian bases are, the red areas in the map below, but he isn’t popular with anyone at the moment. The rebel leader, Abu Mohammed al Jolani, was a member of Al Quada till 2006, and then member of ISIS (ISIL) under Abu Baghdadi till 2016 at least. He’s still on our terrorist list, though he now claims to be a progressive Moslem. Not everyone is convinced, or happy with him. Syria is divided into seven (or more) control zones, shown on the map below. He could bring peace to Syria, but his path to peace is clearly further war.
On the legal and PR front, we’ve called Russian president Putin a madman and war criminal, we support Turkey’s efforts to overthrow Assad, but complain about his attacks on the Kurds, the yellow areas, and dark green at right, and we both applaud and condemn Israeli President Netanyahu for attacking Syria in the south, and in the red sliver, destroying Syria’s navy. Meanwhile, we (the US) have taken it upon ourselves to attack ISIS (ISIL) camps in central Syria, the grey areas, as well as attacking troops (Iranian Shia) entering from Iraq. By normal definition, this would put us at war with Syria, and perhaps with Turkey since we support the Kurds in their war against Turks.
Recently we’ve decided that the rebel leader, al Jolani, might be taken off the terrorist list subject to a few conditions (I wonder which). We (Biden, Shumer) along with the International Criminal Court have called for the arrest and imprisonment of Israel’s PM Netanyahu. The Turks too have join in on this, while somewhat cheering Israel’s destruction of Assad’s navy. The Druze, allies of Israel (and us?) seem to be at war with al Jolani, and likely the Turks and Iran. They’re in south-east Syria, near Deraa, not shown by a color on the map. Meanwhile, Russia is trying to make peace with al Jolani, to secure their military bases, while Iran (Shia) has reached out to al Jolani (Sunni) in an effort to join with him in a war against Israel. It’s not quite tipped into world war, but it seems awfully close.
One possible peace maker might be the incoming US president, Trump, but the outgoing president, Biden, has done his best to tie his hands, branding him as a felon and seditionist, as well as claiming he’s a Russian asset. European leaders don’t like him either. France’s Macron might a peacemaker, but Macron’s government has fallen. The Germans or Turks might be peacemakers, but the government of Germany has nearly fallen, the economy of Germany is hurting, and Turkey is a combatant, at war with the Kurds and Druze. Iran, and Russia, though not combatants, are directly involved in the fighting, and both countries are under sanction by the US and EU, and the UN is discredited from it’s years helping Hezbolla. I thus see no clear path to peace and no peacemaker who will dial back the drama before we sleep-march into WWIII.
Every year we hear the same claim: that this the most important election of America’s history. This year is among the more contentious than most, but the issues dividing the candidates are few. Both, for example, claim they will protect the border and spur the economy. In lieu of issues, there’s name calling. Trump claims Harris is as incompetent buffoon and Harris claims Trump is a fascist dictator. The rancor practically guarantees as they’ll be riots whoever wins but, as these things go, the election is less important, and divisive than ’64 and ’68, and in particular, the election of 1860.
Following the 1860 election, election seven states ceded from the union and we had a Civil War. Even the most bleak prediction for 2024-25 is for a more peaceful transfer of power. The election of 1860 had two major issues on the ballot; one was slavery or rather the expansion of slavery to the territories, and the other was implementation of the Morrill tariffs. These import taxes, proposed by Justin Morrill and passed but not yet implemented, would have raised the average agricultural duty from 15% to to 47%. Duties on durable goods wool rise to 65%, with the burden falling disproportionately on the southern states. Duties on durable goods. There was also a price schedule that would have prevented British shippers from minimizing the effect by falsely claiming a price far below market, something China currently does. In September 1860, Republican Leader Thaddeus Stevens told a New York City audience that “the Tariff would impoverish the southern and western states, but that was essential for advancing national greatness and the prosperity of industrial workers.”
Matching the two sides to the two major issues of the day, there were four major candidates for president in 1860. All of them won states. Lincoln carried the greatest number, 18, and won the most electoral votes, 180. He was for high tariffs and against the expansion of slavery. Second was John Breckinridge, the Southern Democrat, who carried 11 states and got 72 electoral votes. He was for the expansion of slavery and against the higher tariffs. Then there was Stephen Douglas, the Northern Democrat, who was for allowing the expansion of slavery, considering it a “states right,” and also for the higher tariffs. Douglas carried only one state, Missouri, with 12 electoral votes. Finally, there was John Bell, the Constitutional Union candidate, who carried three states, Virginia, Tennessee, and Kentucky, representing 39 electoral votes. He opposed the expansion of slavery and also the increased tariff, but he generally believed that compromise was always possible. This was the worst vote split in US history. The worst split I’ve seen was 1968, when three candidates carried states.
The south imagined they could walk away because that’s how they read the constitution before the 13th amendment. They imagined they could win a civil war because they imagined they had British military support. “Cotton was king,” they claimed. The UK prime minister, Lord Palmerston, had told secretary Adams, “We do not like slavery, but we want cotton, and we dislike very much your Morrill tariff.” As it was, the British stayed on the sidelines, in part because of diplomacy. Besides, the gunship Monitor showed that the North could sink most any British ship that entered US waters.
As for 2024, I expect there will be riots whoever wins, but nothing more. The parties are realigning significantly, as happened in 1964-68, and neither side much understands the appeal of the other. This seems like less of a wrenching election than in 1964 and 1968, though. In ’64-’68 US boys were dying in Vietnam in numbers, and black folks and their white friends were being lynched in the south. Nothing like that is happening today. Today’s riots have been fueled by nothing more than name-calling, fear, and the occasional assassination attempt. Mild, even compared to 1968.
Robert Buxbaum, November 4, 2024. Justin Morrill is mostly remembered today for the Land-grant college act of 1862. This created an agricultural -technical college in each state. I taught at Michigan State University, Michigan’s land grant university. I’m generally a fan of tariffs, both as an aid to the domestic economy and as a tool of foreign policy. I present these views here. I got these views from Peter Cooper.
It gets so little notice from the news agencies that many will be surprised to find that China has a space station. It’s known alternately as the Tiangong Space Station or the CSS, Chinese Space Station; it’s smaller than the International Space Station, ISS, but it’s not small. Here is a visual and data comparison, both from Wikipedia.
China’s space station is smaller than the ISS, but just about as capable. Cooperation leads to messiness (and peace?)
The ISS has far more solar panels, but the power input is similar because the CSS panels are of higher efficiency. As shown in the table below, the mass of the ISS is about 4.5 times that of CSS but the habitable volume is only 3 times greater than of CSS, and the claimed crew size is similar, of 3 to 6 compared to 7. The CSS is less messy, less noisy, with less mass, and more energy efficiency. Part of the efficiency comes from that the CSS uses ion propulsion thrusters to keep the station in orbit, while the ISS uses chemical rockets. The CSS thus seems better, on paper. To some extent that’s because it’s more modern.
Another reason that the ISS is more messy is that it’s a collaboration. A major part of its mission is to develop peaceful cooperation between the US, Europe and Russia. It’s been fairly successful at this, especially in the first two decades, and part of making sure parts from The US, Russia, Europe, Japan, and Canada all work together is that many different standards must be tolerated and connected. The ISS tolerates different space suits, different capsules, different connections, and different voltages. The result is researchers communicate, and work together on science, sending joint messages of peace to the folks on earth. Peace is an intended product.
By contrast, the Chinese space station is solely Chinese. There are no interconnection issues, but also no peace dividend. It has a partially military purpose too, including operation of killer satellites, and some degree of data mining. This was banned for ISS. So far the CSS has hosted Chinese astronauts. No Chinese astronauts have visited the ISS, either.
Long march 6A rocket set to supply the CSS. It is very similar to the Delta IV.
India was asked to join the ISS, but has declined, wishing to follow China’s path of space independence. The Indian Space Research Organization plans to launch a small space station on its own, Gaganyaan, in 2025, and after that, a larger version. That’s a shame, though it’s not clear how long cooperation will continue on the ISS, either. See the movie I.S.S. (2023) for how this might play out. Currently, there is a tradition of cooperation about ISS, and it’s held despite the War in Ukraine. The various nations manage to work together in space and on the ground, launching people and materials to the ISS, and working together reliability.
Although it isn’t a direct part of the space stations, I should mention the troubles of the Boeing Star-liner capsule that took two astronauts to the ISS compared to the apparently flawless record of the CSS. The fact is, I’m not bothered by failures, so long as we learn from them. I suspect Boeing will learn, and suspect that this and other flailing projects would be in worse shape without the ISS. Besides, the ISS has been a major catalyst in the development of SpaceX, a US success story that China seems intent on trying to copy. SpaceX was originally funded, at low level, to serve as a backup to Boeing, but managed to bypass them. They now provide cheaper, more reliable travel through use of reusable boosters. The program supplying CSS uses traditional, disposable rockets, the Long March 5 and 6 and 7. These resemble the Atlas V, Delta IV and Delta IV Heavy. They appear to be reliable, but I suspect they are costly too. China is currently developing a series of reusable rocket systems. The Long March 9, for example will have the same lift capacity as SapceX’s Starship, we’re told. Will the Indian program choose this rocket to lift their space station, or will they choose SpaceX, or something else? The advantages of a reusable product mostly show up when you get to reuse it, IMHO.
I started my own business, rebresearch. It puts food on my table, and provides satisfaction that I’m helping people. It seems to me that other folks, particularly veterans, could benefit from owning their own businesses. Veterans seem to possess more of the skills for successful business startup than found the general population, and I notice that veterans start businesses more than most folk do, too.
Some 50% of returning veterans from WWII started their own businesses, I’ve read, and some were very successful. Walmart, the world’s largest retail company, for example, was founded by WWII Army intelligence officer Sam Walton. Then there’s FedEx, founded by Fred Smith, a Marine Corps Veteran of Vietnam, two tours, where he earned two Purple Hearts, a Bronze Star, and Silver Star.
Both of the above are in supply/ logistics, but veterans also open real estate shops, coffee shops, construction… Their success rate is higher than non-veterans perhaps due to skills they may not appreciate: physical stamina, organization, discipline, and the ability to “get the job done.” Having a successful business requires that you either show up every day at 6:30, or 7:30 — and to have a trusted replacement ready if you can’t. Many folks in the population don’t seem to understand the need to show up. This Is not to say that starting a successful business is easy, even if you show up and know what you’re doing, but reliability and hard work go a long way. Besides, many veterans have specific skills that transfer directly. See below, some business ideas with links to veteran-started companies in each area.
veteran-owned business directory copied from https://www.veteranownedbusiness.com.
One advantage of stating a business over working for others is that you are guaranteed to get hired. And you can hire your wife, etc. Also, there’s a bigger up-side than working for others. There are tax benefits too — your car and computer can be bought with pre-tax dollars assuming you use them in the business. These are not insignificant benefits — usually your tax bracket is higher than your profit margin. You generally have to work more hours per day as an entrepreneur, but if you like the work and have the skills that might not be too bad.
Perhaps you learned cybersecurity
Veterans often have credentials and skills that are rare in the country at large, and this can set you up for a good job. A high security clearance, for example– it’s necessary for many jobs in security –or skills in airplane repair, fire-arms, martial arts, shipping, recruiting, food service, communications, security, commissary… If these areas appeal to you, you can get extra training, either while still in the military or outside, and the gov’t will often pay for it. If you’re already out, think of using your VA benefits to go to school. You’ll want to fill in gaps, too, like in accounting. Good luck.
The Houtis, a Shia Islamic group, have been attacking ships in the Red Sea, hitting European ships, mostly carrying goods going between China and Europe. They use ballistic missiles plus cheap drones with great effect, targeted by an Iranian spotter ship in the Red Sea narrows, the Bab el Mandab. The US response is “Prosperity Guardian.” We’ve sent four missile destroyers. and the British one. These are arrayed along the entire coastline, too much coast for 5 ships to protect, and we try to shoot down drones and missiles. We manage to shoot down most of the missiles and and drones, but some always get through, and they mostly hit US and British targets. Recently the Maersk Detroit, a US flagged ship and 3 days ago, the British tanker, Marlin Luanda, shown below. It was carrying Russian naphtha headed for China. Some months ago, The Houtis kidnapped a British ship (Jewish owned) and took it to Yemen, as described previously.
British oil tanker, Marlin Luanda, on fire in the Gulf of Aden after being hit by an Iranian missile fired by Yemen’s Houthis. The tanker is hauling Russian naphtha, headed for China.
Iran supplies the missiles, and helps choose targets. According to Kissinger the aim of their attacks, and of the attacks on Israel, is to delegitimize Sunni Moslem countries like Egypt and Turkey that have made peace with Israel and the west. Whatever the motivation, Chinese and Russian ships are not targeted, but our ships are. We don’t attack the Iranian spotter for fear of starting a war. Instead we bomb Yemen, and protect ships carrying Chinese good and Russian oil. Currently 80% of the oil tanker transits of the Suez carry Russian oil (see below).
Most of the oil trade in the Suez is Russian — yellow line. Everyone else is shown in blue-black. It’s down to 0.5 ships per day, on average.
I don’t mind helping European countries get cheap Chinese goods, but I think the the main folks to pay should be the Europeans. We’re firing expensive anti-missiles and we’re showing the strengths and vulnerabilities to the Iranians, Chinese and Russians. Currently it’s our sailors who are at risk. The US trades with China too, but our China trade is not benefitted by ‘Prosperity guardian. Mostly our China trade avoids the Suez Canal, and comes around Africa to Savana or NY, or it comes across the Pacific, directly to Los Angeles. Our India trade most goes the same way. Some used to go through the Suez before the Houtis started attacking.
France and Japan have not joined prosperity guardian. Instead they have chosen to convoy their own flagged ships, even allowing the occasional stringer to tag along. Doing this, they use fewer ships, and it seems to work better than our approach. The picture at left shows a French courvair-escort escorting two French container ships. Note how much bigger the container ships are than the French warship. Should the Houtis’s missiles get too close to a French ship, I suspect that the French would retaliate hard. I think we should switch to following the French model and convoy-protect our shipping, plus whoever wants to tag along.
Map of Yemen and the Red Sea narrows.
Shipping, insurance rates have risen to about 1% of the cargo value. It’s now so expensive that no US cargo carrier will transit the area except when needed to supply our troops. At this point it’s worth asking, “Whose property are we guarding?” Also, is this really worth the lives of US sailors? If it is, why not hit the source of the problem — The Iranian spotter. The behavior of the French and Japanese makes sense to me. Biden’s behavior here does not.
Robert Buxbaum, February 6, 2024. Iran also funds and arms Hezbollah, a group that killed 3 US soldiers two months ago, and who killed several Kurdish allied troops in Syria just yesterday, and have shelled Israel intensely for months. IMHO, you want a few, well defended bases, not in harms way in Syria, but close enough to come back fast, in force.
I predicted dire times for China six years ago, when Xi Jinping amended the constitution to make himself leader for life, in charge of the government, the party, the military, and the banks. Emperor, I called him, here. It now seems the collapse has begun, or at least stagnation. Chinese history is cyclic. Good times of peace and plenty give rise to a supreme emperor whose excesses bring war and famine, or at least stagnation. The cycle repeats every 50 to 100 years. Since Nixon opened China in 1973, the country has seen 50 years of prosperity and spectacular growth, but the growth has stopped and may be in decline. The stock market (Shanghai Shenzen 300) peaked in 2021 and has declined 50% from there. It’s down 30% for the last 12 months to levels seen in December 2010. US growth seemed slower than China’s but it’s been more steady. The main US stock market, the S+P 500, has more than tripled since 2010, up 24.5% this year.
Five years of the Shanghai 300 index with hardly any change. There has hardly been change in 15 years. One could argue that the lost decade is here and on-going. .
Each year Chairman Xi’s behaves more dictatorial. Last year he arrested his predecessor, Hu Jintao in front of the Communist party. He now tracks all his citizens actions by way of face recognition and phone software, and gives demerits for wrong thinking and wrong behaviors. You lose merits by buying western cars or visiting western internet sites. Taking money abroad is generally illegal. Needless to say, such behavior causes people to want to take money abroad, just in case. Last week, Xi proposed a limit on video game playing and clamped down on banks, demanding low interest rates. This is bad for the gaming corporations and teenagers, and banks, but so far there are no protests as there is no war.
Kissinger said that war was likely, though. Xi is building the navy at a fast pace, adding fast surface ships, nuclear submarines, aircraft carriers, and new attack airplanes. They’ve added hypersonic missiles too, and added listening stations and bases. There’s now a naval base in Djibouti, at the entrance to the Red Sea, where they oversee (or promote?) Iran’s attacks on Western shipping. Then there are the new Chinese Islands that were built to take oil and fishing rights, and to provide yet more military bases on key trade routes. These could easily be a trigger for war, but so far just one military interaction in the region. Last month, the Chinese and Philippines navy clashed over fishing!
In the Gulf of Finland last Month, a Chinese ship, New New Polarbear, destroyed the offshore cables and gas pipes between Finland and Estonia, in protest of Finland’s entry into NATO. It’s belligerent but not war. Undersea cables are not covered by the UN charter, law of the sea. Then there is the evidence that COVID-19 was the result of Chinese bioweapon development, and the Chinese spy ballon that was sent over the US. We maintain at peace, but an unsettled sort of peace — is it a preface to war? Wars don’t have to be big war against the west or Taiwan, more likely is Vietnam, IMHO.
China’s negative population growth means that property values will drop along with product consumption. Kids buy stuff; old folks don’t.
News from China is increasingly unreliable so it’s hard to tell what’s going on. There were claims of a coupe, but perhaps it was fake news. Reporters and spies have been arrested or shot so there is no window on anyone who knows. There are claims of high unemployment, and COVID deaths, and claims of a movement to “lie flat” and stop working. Perhaps that was behind the ban on excessive gaming. Who knows? Xi claims that China is self sufficient in food production, but record food shipments from the US to China suggest otherwise.
Major businesspeople have disappeared, often to reappear as changed men or women. Most recently, Jimmy Lai, the Hong Kong clothing magnate, was indicted for sedition by tweets. Perhaps he just wanted to fire workers, or pay down debt, or move abroad (his daughter is). Many businesses exist just to make jobs, it seems. Not all of these businesses are efficient, or profitable. Some exist to violate US patents or steal technology, particularly military technology. I suspect that China’s hot new car company, BYD, is a money-losing, job factory, behind Tesla in every open market. Some 91 public firms have delisted over the last two years, effectively vanishing from oversight. Are they gone, or still operating as employment zombies. Will BYD join them? If China manages to avoid war, I have to expect stagnation, a “lost decade” or two, as in Japan saw from 1990 to 2010, as they unwound their unprofitable businesses.
A sign suggesting that a Chinese lost decade has begun is that China’s is seeing deflation, a negative inflation rate of -0.2%/year according to the world bank. It seems people want to hold money, and don’t want Chinese products, services, or investment. Japan saw this and tried a mix of regulation and negative interest rates to revive the interest, basically paying people to borrow in hopes they spend.
In Japan, the main cause of their deflation seems to have been an excess of borrowing against overvalued and unoccupied real estate. The borrowed money was used to support unprofitable businesses to buy more real estate. This seems to be happening in China too. As in Japan, China originally needed new lots of new apartments when they opened up and people started moving to the cities. The first apartments increased in value greatly so people built more. But now they have about 100% oversupply: one unoccupied or half-built apartment for every one occupied, with many mortgaged to the hilt against other overvalued apartments and flailing businesses.
Chinese Dept, personal and corporate match Japan’s at the start of the lost decade(s). Personal debt is at 150% of GDP, corporate debt is at65% of GDP, all propped up by real estate.
As in Japan 30 years ago, China’s corporate + personal debt is now about two times their GDP. Japan tried to stop the deflation and collapse by increased lending, and wasteful infrastructure projects. People in the know sent the borrowed money abroad confident that they would repay less when they repaid. We are already seeing this; low interest loans, money flowing abroad and a profusion of fast trains, unused roads, and unused bridges. I suspect most fast trains don’t pay off, as planes are faster and cheaper. These investments are just postponing the collapse. China is also seeing a birth dearth, 1.1 children per woman. This means that within a generation there will be half as many new workers and families to use the trains, or occupy the apartments. As the country ages, retirees will need more services with fewer people to provide them. China’s culture promotes abortion. China’s working population will decline for the next 30 years at least.
Japan came through all this without war, somewhat poorer, but unified and modern. It helped that Japan was a democracy, unified in culture, with an open press and good leaders (Abe). There was no collapse, as such, but 20 years of stagnation. China is a dictatorship, with a disunited culture, and a closed press. I think it will get through this, but it will have a much rougher time.
Piracy is illegal throughout the world, but has become increasingly popular. Over the last 3 weeks, perhaps 15 ships have been attacked by pirates (or privateers) in the narrow entrance to the Red Sea between Yemen, Somalia, and Djibouti, the “Bab el Mandab,” In Arabic, this means “the gate of tears”. Most of the ships attacked are large commercial vessels operating between Europe and Asia. The US destroyer, Carney has been attacked as well. Three of the attacked ships have been boarded, and two have been successfully hijacked, the car-carrier Galaxy Leader was taken to South Yemen, while the MV Ruen a Bulgarian owned dry bulk (grain) ship was brought to Somalia. The last of the hijacked ships, the Strinda, was recaptured by the US and Japanese navy. The other ships were attacked, at a distance, by Iranian ballistic missiles, cruise missiles, and drones, all fired from Yemen. All of these acts are defined as piracy under the UN Charter, Law of the Sea, UNCLOS. The punishment is 10+ years in prison, assuming you catch the pirate.
Bab al Mandab = Gate of tears, where the pirates operate.
All of these ships are European except for the Carney and a Chinese container ship flagged in, Hong Kong. You’d think that the European navies would protect their own ships here, but they do not. Neither did the Chinese navy, though they are stationed in Djibouti. It’s clear that Iran is organizing the attacks, and that they are using a spotter ship to help direct the missiles. My guess is that the European countries don’t want to annoy Iran here, nor do they like to use their $1 million missiles.
In theory, these attacks are in response to the Israel – Gaza war. The hijacked Galaxy Leader was registered in the UK, but owned by an Israeli Jew (see a video of the attack). Another ship that was attacked, the Strinda, was not directly associated with Israel, but was going to go to Israel at some point in the future. While it’s possible that the other attacked ships had Jewish or Israel connection, a simpler explanation is that this is economic terror. Israel-based Zim shipping has elected to avoid the straight and redirect around Africa instead, a much longer route that is sure to damage the shipper and Israel’s economy. I suppose that was an intent, but the damage is spreading.
Commercial vessel attacks in Bab al Mandab, chart from “What the Ship” video blog.
The European shippers have demanded that the US protect their ships, and perhaps Biden will agree. My sense is that Trump would have said no, or at least demand something in return. Personally, I see no reason to defend trade that doesn’t involve us, with no obvious payback. Yesterday, British Petroleum BP announced that it would avoid the Bab. Four major European container freight firms, MSC (Swiss), Maersk (Danish), Hapag-Lloyd (German) and CMA CGM (Italian, French). Currently Maersk supplies our troops, but has threatened to stop unless we defend their whole fleet. I consider this an offensive, a breech of contract. They European press seems to think it’s clever. We used to have a US company that supplied our troops, Landsea intermodal, but Maersk bought them out. Personally, I think it’s time to look for a company that doesn’t play these games.
As of two days ago, the economic damage has been minimal, except to Israel. Only 55 ships had diverted around Africa, or begun to. This is a small fraction of the 2,128 ships that have gone through the Bab since November 15. In the last day or so, European oil prices have started to rise, while ours fell. The thought is that Saudi oil will now flow to the US, not Europe. I think this is the beginning of a serious problem for Europe and that they should defend their own shipping. A few, million dollar missiles are a lot cheaper than the billions of loss to their economies that rerouting will cause. At present, Europe expects us to save them while they do little or nothing. I think we should say no. They think Biden will cave.
Jean-Paul Sartre was a Catholic who did not believe in God or external morality, but believed in socialism and being true to ones self without having to do anything for anyone. His most famous work, “Being and Nothingness” was written in France in 1943, during the Nazi occupation. The last 200 pages of the book deal with freedom and its limitations. Sartre points out that there are always limitations (prison guards, Nazis, your own body, etc.) It is dangerous and impractical to oppose these guards, or or to oppose your own body. Sartre’s advice is to go along in body, but oppose them in your mind. Thus, he believed, he was being true to himself to the extent of rational choice. He was totally free because he was free in his mind and in his reactions to the limitations. “Freedom is what we do with what is done to us.” This was his version of existentialism, and many Frenchmen agreed that this was the right way to behave under the circumstances. Many Nazis agreed and enjoyed his writing and plays. If they didn’t totally like what Sartre had to say, they didn’t object enough to send him to a concentration camp. In practical terms, he thus survived better than Jews and oppositional Frenchmen.
Sartre had eyes that pointed in different directions. Some try to claim this related to his philosophy
Although there is a stink of cowardice and collaboration hanging over Sartre and his outlook, it could be worse. A Sartre Joke: Sartre had just finished talk at a restaurant, and sat down. A waitress who understood the talk better than most, asked if she could get him something. Sartre said, “please bring me a coffee, no sugar, no milk.” The waitress came back and said, “we’re out of milk. I can get you coffee with no sugar and no cream.” The point of the joke being that Sartre’s freedom of choice can only be among the choices he could reasonably make. If he’d asked for milk, it’s irrational to expect that the restauranteur would run out and buy some, so it was pointless to ask for no milk.
As the Germans were leaving, Sartre took French antisemites to task in a short book, “Antisemite and Jew” (1944) where he discusses the inauthentic logic of French antisemites and the motivations behind their behavior and beliefs. He claimed the motivation was a sort of mob empowerment where the antisemite, by oppressing Jews sees himself as noble, and comes to feel himself as the heir of all France, its history and its culture. They the thus imagine themselves empowered and enriched by their hatred of he-who-isn’t-them. This motivation he inferred in the liberal Frenchman as much as in the thug; the liberal objects to the yellow star, not out of sympathy for the Jew or justice, but for an inauthentic reason. It makes him feel small by his inaction, and it crates, in the Jew, an identity that is beyond the essence they prefer; he’s more than just ‘not-them’. As I read him, the main character in “Catcher in the Rye”, Holden Caulfield, is a Sartre stand in, a privileged kid bothered by the “phoniness” around him, Like Sartre, he complains and does nothing for anyone, but he does no harm either.
Sartre didn’t join the resistance, even after the Germans were losing, nor did he hide Jews or gentles, or help anyone but himself. After the war, he pushed for the execution of those who were insufficiently anti Nazi, like Tintin author, Hergé. Hergé survived, many of those he attacked were killed in post war purges. Sartre’s philosophy actually works for prisoners in extreme circumstances. Similar philosophies were created by Victor Frankl and Primo Levi during their stays in Auschwitz. It helped them survive and stay sane. Frankl’s “Man’s search for meaning”, was alternately titled, “From concentration camp to existentialism,” a lot concerns the importance of keeping your mind clear – of not becoming an animal.
Simone de Beauvoir & Jean-Paul Sartre with Che Guevara, a favorite Communist murderer, in Havana, Cuba, 1960 (photo by Alberto Korda).
After the war, Frankl became a successful psychologist helping people by helping them to see that they had a reason to exist. This is a more positive version of Sartre’s existentialism, where there was no reason. Primo Levi seems to have followed Sartre’s line more and become ever more depressed; eventually he committed suicide. Eventually, Sartre found a reason to exist in socialism. He believed that, while life was a cruel joke, socialism was pure. People could die in the millions, and he acknowledged that, the leaders were brutal thugs who did murder millions, but he believed that socialism and communism must live on. He tried to keep the bad truths hidden. So what of the killing and torture. So what if writers were imprisoned or shot — in Russia all the Jewish ones were shot in the same day — Sartre said they should have written better books, more pro-communist. Sartre would never have willingly lived in communist Russia, China, or Cuba — he stayed safe in France, and championed the oppression.
Gays for Gaza are not interested in a queer state of Palestine; they attack Jews to make themselves feel generous and powerful — it gives their lives meaning.
This brings me to the pro-Palestinian authors of today, and of 1973. Fifty years ago on Yom Kippur, Iraq, Syria, and Egypt attacked Israel by surprise simultaneously with aid from Russia. Communists and socialists supported the Arabs. Among them was Sartre, though he knew these states to be brutal dictatorships. Pretty soon Sartre discovered that his friends motivation was that they liked attacking Jews, a phony motivation, said Sartre in an interview, and he found he could not join them
I detect the same phony motivation in today’s demonstrations. The loud feminists for Palestine, the Gays for Gaza, those attacking Jews for complicity. Very few of them would willingly live in these countries or among Hamas or ISIS, and fewer of those would survive. Their love of Palestine is an excuse to hit Jews. The better version is Sartre’s he did nothing then, and would likely have done nothing today. You have to have authentic thoughts, at least.
