Category Archives: Politics

Is It Too Late?

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Note: Behind the green door, there is a post about Russell Brand and what his case suggests about the state of the law, a post about using AI as an editorial team for the posts on this site, and the Sunday podcast. Subscribe here or here.

One of the questions rarely asked regarding the ongoing American crisis is whether we have passed the point where reform is possible. Few want to consider that possibility for obvious reasons. If reform through the regular political process is no longer possible, then only unpleasant alternatives remain. One of those alternatives is some form of collapse. Like Gorbachev’s Soviet Union, America may be headed over the cliff with nothing to prevent it.

Last week, we caught a possible glimpse of the answer. Trump rolled out his tariff regime, and the stock markets went wild. It was not just a global selloff; volatility was off the charts, which is worse than the decline itself. A steady selloff occurs during a correction when markets are overbought. A chaotic, erratic decline signals panic setting in among the algorithms. It means their code cannot interpret the conditions they are programmed to use for trading.

Just as things began to stabilize, the bond market started to “get the yips”, as Trump noted on Thursday. No one in the mass media understands this, so they kept claiming the bond market crashed, which is far from accurate. The issue was that market players were dumping treasuries. It is unclear why, for instance, the Japanese central bank was selling treasuries. This uncertainty is just as worrisome as the actual dumping, so everyone was spooked.

Typically, the reason for dumping treasuries is a liquidity issue, either in the system as a whole or in a segment of it. In this case, the consensus is that hedge funds were raising cash due to the market decline. That could be true, but it is also possible the basis trade was unraveling. This is when hedge funds bet on tiny changes in treasury yields—a major way they generate profits within the system.

Here is how it works: Imagine you believe the value of an asset like a treasury will decline over the next six months. You hold this asset, but it is collateral for another transaction. You cannot sell it now, so you agree to sell it in the future at the current price rather than the market price at that time. If the price surges, you lose potential profits when the contract expires, but if the price drops as expected, you are protected from those losses.

There is much more to it, but that is the gist, and this happens across markets for everything, even treasuries, which have been very stable. Even earning a tiny percentage on these transactions can net millions for a fund handling tens of billions in trades. In fact, the financial system relies on clever quants coding models to exploit these small discrepancies between current and future prices to generate wealth.

When Trump’s tariffs caused this system to go haywire, triggering a panicked demand for cash, he had no choice but to back off. It was not that the bond market revolted due to a philosophical disagreement with the policy. Rather, this massive system is a house of cards that cannot tolerate even minor disruptions. Trump’s tariff regime should not have caused chaos, but the fact that it did suggests even small changes are no longer viable.

That is not the end of it. The central bank could mitigate this by injecting enough cash to resolve the liquidity issue. In fact, it can inject enough to counter deliberate revolts. You cannot beat the Fed. This should have happened last week, but Jerome Powell either refused to act or was too inept to grasp the situation. He has been the worst Fed chair since Arthur Burns, so incompetence is a strong possibility.

That said, the Fed held an emergency meeting just before Trump announced his tariff plan last week, likely in response to it. Given the Federal Reserve’s composition and its attitudes toward the American public, it is possible they intended to undermine the process. The Bank of England toppled Liz Truss’s Tory government, so it is not unthinkable. The head of the Bank of England at the time was Mark Carney, who is now the dictator of Canada.

This would imply that normalizing the American economy is no longer possible, at least not through standard political processes, because the entrenched interests profiting from the system will not allow it. That is what we will discover in the next ninety days as the Trump team navigates this challenge. Bessent has suggested they will use this time to strike individual deals with countries rather than unilaterally imposing a tariff schedule.

Of course, they could also have Jerome Powell killed, thus sending a message to the parasite class that they must fall in line or else. They never take no for an answer, so this approach never works. The Russians had to execute a lot of oligarchs before the rest finally fell in line with the new program. Falling in line usually meant fleeing the country with their cash. Maybe it does not have to come to that with the bankers, but last week was not a positive sign.

What the events of last week show is that normalizing American economic policy is not going to be easy within the current process. It also suggests it may not be possible without radical approaches to implementation. We may have reached the point where even with enough coercion, the system cannot be reformed. We may have blown past the point of no return as far as the political and economic order, so what lies ahead is chaos no matter what is done.

If you like my work and wish to donate, you can buy me a beer. You can sign up for a SubscribeStar or a Substack subscription and get some extra content. You can donate via PayPal. My crypto addresses are here for those who prefer that option. You can send gold bars through the postal service to: Z Media LLC P.O. Box 1047 Berkeley Springs, WV 25411-3047. Thank you for your support!

Back To Work

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Warren Buffet famously said, “Only when the tide goes out do you discover who’s been swimming naked.” The point of this metaphor is that in economic downturns you learn who has been taking excessive risks. Another way of putting it is that in easy times, everyone can be a hero or a genius. This has been the case for the American financial system for over thirty years. As long as credit money kept expanding, everyone had a chance to look like a financial genius.

This explains the prevalence of people in the financial media who somehow get everything wrong but maintain their status as experts. The most notable of this sort is Jim Cramer who has made a career out of being outlandishly wrong. Paul Krugman wrote a column for years about the economy, despite never being right about it. These are two famous examples, but the commentariat is littered with these types. As long as the arrow kept going up, being wrong was good money.

The trouble is that the entire financial industry is built on this premise. Being wrong comes with no penalty, because wrongness rarely comes with a cost. Sure, the MegaBrain Capital Fund might not perform as well as random guessing, but because the arrow always goes up, even the bad bets pay off. This also means anyone spouting random gibberish can present himself as an expert. Tens of thousands of mortgage payments, maybe hundreds of thousands, rest on this assumption.

The main reason for this, of course, is the United States has been both the global mint and the global bank since the 1980’s. You can see it in the markets. From 1985 to the present, the DJIA has increased by about nine percent per year. That includes the many busts that were backstopped by the global bank. From 1965 to 1985 the markets suffered a long bear market, after the long twenty-year bull market that kicked off after the end of the Second World War.

Another way to think about it is the American stock market boomed by about ten percent per year when the rest of the world was in rubble. Europe was literally in rubble after the war. Much of it was controlled by communists. China was a feudal, agrarian society trying to implement Marxist-Leninism. Japan only stopped glowing after that long bull market ended. In other words, the American economy and the equities markets had a great run when there was no global competition.

Somehow, as if by magic, equities had a run like the post war decades, despite the hollowing out of the economy. The run has also been longer. The twenty-year post-war boom ran out of steam even though Asia was not online yet, just because Europe was starting to recover. We have experienced a forty-year run while at the same time the American economy transitioned from inventing things and making them to driving each other around in Ubers.

It turns out that if the mint can make as much money as it likes, being the only mint on earth anyone values, and they give what they mint to the only banking system anyone values, the people in this system can do no wrong. For decades it has been like being at a casino with an endless line of credit. Not only that, but the dealers would also occasionally give you some insider information on the decks. It is not hard to look like a genius when you are playing with house money.

That world is coming to an end. The shock therapy we are seeing is not just a bluff to get better tariff deals. It is in anticipation of the fact that the world is shifting from where the dollar dominates all global trade to one where local currency arrangements will often be preferred over the dollar. If you want to buy from China, it will mean doing so in their currency, not dollars. The same is true for other major trading countries. The Russians have been the proof of concept for this approach.

This does not mean the dollar collapses or people revert to carrying sacks of gold while riding to town on their donkey. The primitive use of shiny bits of metal as currency only comes back if we enter a dark age. What is happening instead is a change in how the world views dollars and more importantly, dollar denominated debt. That means the days of unlimited credit money is coming to a close. The dollar and dollar denominated debt will reconnect with the American economy.

This is all bad news for the flim-flam men who dominate the financial services industry as it means being wrong once again comes with risk. The bad bets from MegaBrain Capital Fund no longer just mean a lower return. Those bad bets now put the firm in jeopardy and get the smart guys fired for making those bad bets. Swimming naked will now come with the risk of the tide going out and staying out. Like the fox in the hen house, risk is returning to the money game.

What is about to happen to the financial sector is like what we see happening with the government sector. The tens of thousands of people who do not do anything necessary will be let go, and that includes the experts in the media. In a world where risk is real, no one will tolerate a television clown dispensing bad advice, unless he is in a fright wig and wearing floppy red shoes. The clowns will back in the circus while the serious men do the serious work.

This is the end of America’s long holiday from reality. Playing make believe in government, finance or the media is no longer possible. Making money will not be about finding clever ways to get that sweet sweet credit money, but about inventing things, improving things and making things. That will not leave a lot of room for diversity experts or chattering skulls. Those people can be put to work in the new factories and repair shops, perhaps sweeping the floors.

If you like my work and wish to donate, you can buy me a beer. You can sign up for a SubscribeStar or a Substack subscription and get some extra content. You can donate via PayPal. My crypto addresses are here for those who prefer that option. You can send gold bars through the postal service to: Z Media LLC P.O. Box 1047 Berkeley Springs, WV 25411-3047. Thank you for your support!

The Wilderness Of Lies

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One of the many things to spring forth from the political froth over the last decade is the level of coordination in the mass media. It was often clear that media activists were coordinating to create their preferred spin, but only with the help of conservative chattering skulls like Rush Limbaugh, who would create montages of media outlets repeating the same catch phrases. Social media now provides this service as the algorithms aggregate the stories and the repetition is too obvious to ignore.

Another thing that was not obvious is that many of the opinion makers, now called influencers, are in on the scam too. Often, they are paid by marketing companies to promote a viewpoint. The recent “soda money” scam where the soda industry paid a bunch of Twitter influencers to promote the health benefits of carbonated sugar drinks is an egregious, but typical example. The truth is, much of what the influencers do is paid for by marketing companies.

This is not just about moving product. The Israel lobby tried to secretly assemble a collection of right-wing influencers for a session with Bibi Netanyahu. Guys like Tim Pool were brought in so they could ask questions and be given instructions. Instead of paying them with cash, they get rewarded with access. This is an old trick that has worked on the media since forever. Look for Tim Pool and other famous influencers to sound remarkably like the ADL.

Payola is nothing new. In the golden age of popular music, record companies sent bagmen to big radio stations so the disc jockeys would play their songs. In the golden age of conservative politics, pens for hire were everywhere. Ben Domenech, one of the founders of The Federalist and RedState, was caught taking money from Malaysia to promote the interests of that country in his columns. Many other conservative pundits were caught up in that scandal.

This feature of the media exploded with the proliferation of digital media and the dominance of social media. It is also much easier to spot. The other day, a company hired by Ukraine did the soda money gag. This time it was a bunch of paid Ukraine supporters on Twitter repeating word for word the same erroneous claims about Chinese soldiers fighting on the side of Russia. The campaign was quickly suspended when it was too obvious to ignore.

It is not just the new school internet chattering skulls taking what used to be called payola, but also the old school types. This post by Victor Davis Hanson regarding the war in Ukraine has all the marks of pay-for-post. It has the typical neocon claims about the Russian army on the brink of collapse and the Russian economy in tatters, two stock bits of the neocon marketing campaign since 2022. Anyone paying the least bit of attention can easily spot those lines as agitprop.

The big tell that this is possibly paid opinion making is the claim that the proposed peace plan will create a DMZ along the border and the Russians will be forced to retreat back to their old border. Not only is this a fabrication, it is total nonsense. There is no such peace proposal and the only people claiming so are the neocons. They have been floating this idea since their 2023 offensive ended in catastrophe. Rather than accept defeat, they want a break to rebuild and rearm.

There are other neocon talking points sprinkled around the text. The claims about Russian losses are the most obvious. There is the crazy claim that Putin is trying to reassemble the old Soviet Union. There is also the mandatory criticism of Trump “art of the deal” negotiating style. Imagine Bill Kristol as a pinata and once he is busted open, what tumbles out are the main neocon talking points. Kids then took those and assembled them into that post for Mr. Hanson.

The Ukraine war has been highly useful in understanding the manipulation that lies behind the opinion makers. Whenever you see the phrase “full scale invasion of Ukraine”, you know you are dealing with a pundit paid by neocons, who are convinced this is powerful rhetoric. “Putin’s invasion” is another example. Normal people working at honest analysis do not use that language. These phrases are emotive signals to the neocon cult indicating a fellow traveler.

In fairness to Hanson, he is getting up there in years and he probably relies on an assistant to write his posts. American Greatness does not pay its writers, so no one can blame any of them for doing the minimum. It is a common practice for bigshot writers to rely on staff. Many of their books are written and assembled by assistants. The bigshot writer acts as the supervising editor. This is how Doris Kearns Goodwin got in trouble over plagiarism claims in one of her books.

That may be the case here. The person tasked with writing these posts simply relied on the copy provided from the neocon email list. On the other hand, Hanson has always been tight with the neocons. He has parroted their propaganda for years, so he could simply be doing the same in that post. That is the point though. In this age of zero trust, no one can be sure if it is honest error, ideological derangement, payola, or sloppy work from an old man nearing the end.

That is the world created by decades of media mendacity. As citizens trying to be as informed as possible, we find ourselves in a wilderness of lies. The “objective reporting” is all narrative storytelling to promote an agenda or a set of moral claims. Much of it is invented out of whole cloth. Analysis is often just payola, but much of it is part of a hidden agenda or a conspiracy. In a world where you cannot accept a man’s opinion as his opinion, you cannot trust anything.

If you like my work and wish to donate, you can buy me a beer. You can sign up for a SubscribeStar or a Substack subscription and get some extra content. You can donate via PayPal. My crypto addresses are here for those who prefer that option. You can send gold bars through the postal service to: Z Media LLC P.O. Box 1047 Berkeley Springs, WV 25411-3047. Thank you for your support!

The Bell Ringing At The Top

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In the fullness of time, we may look at the sale of the NBA franchise, the Boston Celtics, as the bell that rang at the peak of the financialized economy. The team sold for a record-breaking $6.1 billion to a group led by billionaire William Chisholm, the managing partner of Symphony Technology Group. That firm has nothing to do with music or technology. It is a private equity firm. The deal still must be approved by the league and must go through the usual legal process.

The team is one of the crown jewels of the league, so it makes some sense that it commands the highest value. Since the beginning of the NBA, the Boston Celtics have been something like the New York Yankees—winning numerous titles and featuring some of the game’s greatest players. Wyc Grousbeck, whose family leads the ownership group that bought the team in 2002 for $360 million, made, on average, thirteen percent per year on his investment in the franchise.

By comparison, the Dow Jones Industrial Average rose about six percent a year on average, accounting for several crashes along the way. Median home prices in the United States have increased at about the same rate over that time. Some areas, like the Washington, D.C. area, have seen even larger jumps. Given that official inflation numbers are roughly half that figure, it shows that assets, even common ones like houses and equities, have experienced a steady increase.

Now, a golden rule of life is that a thing is worth what someone will pay for it, but value is supposed to be linked to reality. The value of a business, for example, is tied to the value of its assets, its cash flow, and future profitability. A buyer expects to recoup his investment over a specific period, which means the business either has profits or assets that can be sold for a profit. The Boston Celtics are a business, so does that mean the business is worth $6 billion?

The answer is no, not in the conventional sense. Most sports franchises are break-even businesses, with many losing money. They often have negative cash flow due to player salaries, which means they carry a lot of debt. The NBA is experiencing a sharp downturn in its popularity, with television ratings down 60% from the peak. The Celtics do not own their arena, so they lack that asset to supplement their business. Most likely, the franchise is a money-loser by conventional standards.

Of course, the new owners do not care about the business side. They are billionaires who want to be in the billionaire club. It is as much about status as it is about business, but the business side still matters. They no doubt look at the massive inflation in franchise values and think they will have no trouble flipping this property for a nice profit once they get bored with it. In other words, they assume the asset inflation we have seen since the 1980s will continue.

This makes sense in the context of the current American economic model, the one Donald Trump is determined to replace with a new model. The economy that emerged in the 1980s is based on unlimited, cheap credit money that gets plowed into assets like equities, startups, and frivolous things like modern art and sports franchises. William Chisholm is a billionaire, despite never having invented or built anything, because he is highly skilled in the legerdemain of modern finance.

Another aspect of the new economy explains why certain assets, like sports franchises and some tech sectors, have outperformed houses and stocks. The NBA is financed, in large part, by taxes it levies on every household. These taxes come in the form of cable and television bills. If you have a television service, you are paying for all those games you don’t watch. Channels like ESPN are bundled into the bill, and they are a significant part of it. That money subsidizes the NBA.

If, tomorrow, everyone could simply pay for what they watch, like software as a service, sports channels like ESPN would go bankrupt within a month. Right behind them would be all the sports leagues. The reason? Sports networks would lose about 80% of their revenue. That means ESPN could not spend billions on live sports content, and without that revenue, the leagues would collapse. That $6 billion sale of the Celtics would look like the worst bet in history.

The reason regular people feel so much economic angst, despite the appearance of material prosperity, is that we have reached the end of the line for this model, where costs are socialized but profits are privatized. The NBA is one example where the quality of the product has been disconnected from its financial success. In a true market economy, the owners of the Celtics would struggle to give it away, because the NBA, as an entertainment product, is in steep decline.

If you look closely, you will see this dynamic everywhere. The offset to those cheap products at big-box stores is the collapse of American manufacturing, and the social capital that came with it. The offset to cheap labor via immigration has been stagnant wages and emergency rooms that resemble Tijuana bus stops. The offset to a rising stock market is endless financial insecurity. The hidden costs have accumulated to the point where they can no longer be ignored.

The reason Trump is trying to usher in a new economic model is that the old one, the financialized economy, is running out of places to hide the costs of endless credit creation and the auctioning off of social capital. It is not just that we cannot borrow more money. It is that we cannot continue to socialize the costs of creating more credit money. Just as critically, we can no longer tolerate an oligarchy built on privatizing the profits of this system.

That is why the sale of the Celtics may be the bell ringing at the peak of the massive asset bubble that is the American economy. The absurdity of it should offend even the most zealous believer in the transactional economy. In a country with serious problems that require elite investment, watching rich parasites plow billions into a human flea circus brings revolutionary thoughts to mind. It may be the last grotesque gesture of an economic model that has run its course.

If you like my work and wish to donate, you can buy me a beer. You can sign up for a SubscribeStar or a Substack subscription and get some extra content. You can donate via PayPal. My crypto addresses are here for those who prefer that option. You can send gold bars through the postal service to: Z Media LLC P.O. Box 1047 Berkeley Springs, WV 25411-3047. Thank you for your support!

The Great Transition

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Note: Behind the green door, there is a post about an old post I did on Vladimir Putin as the antidote to Peter the Great, a post about the Amazon series The Bondsman, and the Sunday podcast. Subscribe here or here.

Last week, Trump stunned the world by following through on what he has been promising since he came down the escalator in 2015. He imposed across-the-board tariffs on every country in the world—except Russia. The reason Russia was excluded is that they are already sanctioned to the maximum. The tariff knob does not go past one hundred, so they were not on the list. Every other country was hit with a tariff, even Israel, which should cause some people to rethink things.

This set off the Great Trump Stock Market Crash, which promises to continue this week as the rest of the world responds to the new world order. The old trading models no longer work, so the default fallback in these conditions is cash. The quants were working feverishly last week to update their models in order to find the bargains that will inevitably be sitting there, waiting for the lucky. The smart money thinks the floor is a twenty percent correction, followed by stability.

The yesterday men and the crazies are sure this is the Great Depression, because their history of the world starts in the 1930s. It is a stylized history, such that every modern event can be jammed into the 1930s, the 1960s, or the 1980s. Since they are sure Trump is secretly Hitler, this must be the 1930s—even though we have witnessed many stock market corrections in the last thirty years. The COVID crash, the mortgage bubble, and the dot-com bubble are easy examples.

In reality, what we are seeing is the long-overdue return to normalcy, where American economic policy is aimed at benefiting the American people, rather than abstract concepts from economics departments. If Canada has tariffs on American goods, then the United States should have tariffs on Canadian goods—unless it can be shown that the American people benefit in some way from the imbalance. The same is true for every other country in the world.

One of the weird things about decades of American trade policy is that it has created the same sense of entitlement as government racial policy. Just as nonwhites think they are entitled to be near white people without conditions, the world thinks it has a right to access the American market without conditions. This is most obvious in Europe, which has taken this lopsided arrangement for granted. They have also assumed they are entitled to American defense, while doing nothing in return.

The logic behind this arrangement has always been nonsense—but people love to believe in nonsense, especially their own. We see this with the free trade crowd, who are claiming tariffs will only harm the American people. If that were true, then the rest of the world should have been miserable for the last thirty years. Further, if that were true, then the rest of the world now has a chance to usher in a golden age for their people by eliminating their tariffs instead of raising them.

The truth of the matter is that all economic policy is about trade-offs—especially in global trade. This is why it is called trade, rather than “free.” Having a tariff-free relationship with Canada could make sense if the Canadian government could be trusted, as the American and Canadian economies are so similar. The same is not true for Mexico or Bangladesh. Trade is never just about money—it is also about culture and the national interests of the trading countries.

Of course, what we are seeing is not really about trade so much as it is about getting the American financial house in order. Scott Bessent, the Treasury Secretary and architect of the Trump economic policy, has made this clear. Normalizing American trade relations is just one arrow. Another is the mass reorganization of government that kicked off in January. For the first time in the life of anyone reading this, the size and scope of government will be reduced.

Another arrow is the changes in the tax code that are slowly working their way through both houses of Congress. The Senate passed its version of spending and tax cuts, so now it is on to the House. What is shaping up is a two-pronged approach: one is to put into law the cuts made by the DOGE boys, and the other is a radical revamping of the tax code to reflect the new economic approach. Removing taxes on tips and overtime, for example, is part of the Senate model.

What we are seeing is the most radical alteration to the American economic model since the 1980s. The reason for it is that the old model is unsustainable. As Bessent pointed out, there is a limit to borrowing. For a long time, the American model relied on creating unlimited credit money in the banking system and massive federal borrowing. We have reached the limits of this model. Now, that model threatens the integrity of the American economy, so changes must be made.

More important are the changes in how we think and talk about the economy. For the longest time, the economy has been treated as a god. Americans were expected to tolerate anything to please it. If the economy demanded Haitian cannibals in your town, you had to accept it. If the economy demanded that the quality of your hand tools decline, you just lived with it. If the economy required you to work two jobs to make ends meet, then you did it. The economy was a remorseless god.

This sort of thinking makes sense to an alien overclass that sees the United States as an opportunity to be exploited. It does not make sense if the ruling elite feels a connection and obligation to the people. Shifting from the old transactional model of economics to a nationalistic model requires a new language. Simply pointing at a graph that trends upward is no longer enough. The political class will now have to possess some economic literacy.

It is too soon to know if these changes can make it through Congress. The winners under the old exploitative model will not go quietly. No one knows if the American public will tolerate the pain that must come with the transition. It is not all bad news, though, so the pain may be limited. Energy costs are falling—crude is under sixty dollars a barrel. This could tame inflation enough for the Fed to cut rates. Low taxes and cheap energy will go a long way toward cushioning the transition.

In the end, Bessent is correct. America cannot continue to create credit in the financial system and borrow trillions to hire government workers. We either have an orderly transition back to a normal economy, or we have a disorderly transition. The name for that is collapse—and that is vastly worse than a stock market correction. This is the reason the economic elites are backing this move. They know that the people who suffer the most from failure are the elites.

If you like my work and wish to donate, you can buy me a beer. You can sign up for a SubscribeStar or a Substack subscription and get some extra content. You can donate via PayPal. My crypto addresses are here for those who prefer that option. You can send gold bars through the postal service to: Z Media LLC P.O. Box 1047 Berkeley Springs, WV 25411-3047. Thank you for your support!

Essential Violence

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Note: Paul is back from vacation, so that means we are back tonight for the Wednesday livestream, which you can find here and here. You can also watch on Twitter, but there is no link until it is live. Just go to Paul’s Twitter page. The show kicks off at 8:00 PM EDT and the topic tonight is AI.

In 19th century America, it was popular to argue that there are four boxes for maintaining political liberty: soap, ballot, jury, and cartridge. There is also a version that has just three boxes, which drops the jury box from the model. The soap box is public speech used to persuade the ruling class. The ballot box is the democratic process. The jury box is the legal process, and the cartridge box is violence. The order of the boxes is important as it is both a warning and a promise.

The warning here is directed toward the public. Skipping any of these steps will inevitably be self-defeating. The sorts of people who want to litigate everything, for example, are the sorts of people who will litigate away your liberty. We see this with the inferior court judges. They are like all self-defined underdogs. When they get on top, they are just as intolerant and as cruel as the people they opposed. These people are always more dangerous than present tyrants.

The other side of this is directed at the people in charge. Their status as a ruling elite depends on making sure that the traditional rights and protections of the people are maintained in those first two boxes. Once the people abandon the soap box and the ballot box for the jury box, it is not long before they reach for the cartridge box, and there is no turning back from that one. Of course, an elite that uses the jury box to undermine the ballot box is asking for the cartridge box.

That is what we see in the West: the use of lawfare by the managerial class to both circumvent the soap box and the ballot box. The latest example is in France, where the courts have willy-nilly decided that the most popular politician in the country is no longer allowed to participate in politics. Marine Le Pen was found guilty of trumped-up charges and sentenced to what amounts to internal banishment. Her punishment is like what happened to Khrushchev in the 1960s.

This is the pattern in the West. Romania arrested and then banned the most popular politician in the country for the crime of winning the election. Germany is planning to ban the AfD for the crime of being popular. The new Chancellor, Friedrich Merz, has publicly stated that one of his goals will be to work with the EU to overthrow the Hungarian government. Of course, the UK has declared itself an apartheid state by imposing a two-tiered legal regime aimed at the opposition.

The most famous example of the managerial class abuse of the jury box to circumvent the soap and ballot box is Donald Trump. They tried to remove him from office in his first term, then rigged the 2020 election to deny him a second term. When he did not get the message, they used lawfare against him in the same way we see in Europe, except that Trump managed to win at the jury box. Note they reached for the cartridge box when they failed at the jury box.

The assassination of Trump is a good reminder that it is almost always the case that once either side of the political system reaches the jury box, one side or the other will reach for the cartridge box. The jury box is where irreconcilable differences are confirmed to both sides, no matter the result. The reason there is always the smell of sulfur around attorneys is not only due to who they serve. It is also because sulfur is an essential element of gunpowder.

What we see happening in the West is a reminder that the last box in that formulation is essential to preserve the three other boxes. The 19th century French social thinker, Georges Sorel, explained that political violence is not a sign of chaos, but a healthy antidote to political oppression. It is often the creative destruction needed to free the political marketplace so it can produce healthy politics. Violence also has the effect of energizing the people to defend their ancient liberties.

Thomas Jefferson made a similar point in his famous letter to William Smith from which we get the famous quote, “The tree of liberty must be refreshed from time to time with the blood of patriots and tyrants. It is its natural manure.” Jefferson was not justifying political violence for its own sake. He pointed out that violent resistance is often a necessary reminder to the ruling class of what lies ahead if they ignore the soap box and the ballot box. Shays’ Rebellion was a warning and a promise.

It may be why American oligarchs joined the Trump team. When Luigi Mangione popped out from behind the car to gun down that insurance executive, it let every oligarch know the cartridge box remains an option. If French judges and politicians suddenly come down with lead poisoning, maybe the poseur class in Paris will suddenly rethink their position too. If not, then it guarantees the French end up at the cartridge box anyway.

This is the most likely end for the West as a whole. The Trump reforms will surely fail, as reform is almost always an effort to relieve the pressure of general discontent while maintaining the status quo. In Europe, the ruling class is nakedly hostile to the native population, hellbent on pulling the roof down to spite the people. They will not be talked out of their positions, and they will not be voted out of them. Since the courts are now owned by the managerial class, it leaves the last option.

The irony of all this is that the great lesson of Western history is that liberty only comes when the people join to spill blood. As the sun sets on Western man, this truth is becoming clearer with each outrage by the ruling class. The people endlessly yelping about “our democracy” are killing the West. It is only through the blood of these parasites and vermin that the new Western man will regain his lands and liberty. After the jury box comes the cartridge box.

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No Peace

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After a flurry of peace talks in Saudi Arabia, the Trump peace initiative regarding the war in Ukraine seems to have run out of steam. The last round of talks stalled over the conditions required to create a Black Sea ceasefire. The Russians laid out the conditions they would require, the conditions they agreed to in 2022 under the Black Sea grain deal. Ukraine flatly rejected those terms this time. The Europeans have also made clear that they will never agree to peace.

After Ukraine and the EU rejected the terms, Putin said some things that got little note in the West but were clearly a signal to the Trump administration. The first was at a meeting of Russian industrialists where Putin told them that despite talks with Washington, they should not expect the end of sanctions. The new world order, so to speak, is one in which the Russian economy will operate independently of the West and within the framework of BRICS.

That was a clear signal to the Trump people that ending sanctions was not a carrot and new sanctions are not a stick. The Russians have moved on from the old model where their economy was connected to the Western model. Despite the last three years, the West remains convinced that sanctions are working, and that Russia desperately wants back into the Western economic model. Until the Trump administration sees the folly in this, negotiations with Russia will go nowhere.

Another thing Putin said was in response to a question at a public event about the Trump effort to get a ceasefire. Putin said there will not be a Minsk 3. This is a reference to prior deals with the West over Ukraine. In Minsk 1 and Minsk 2, the Russians agreed to get trapped Western advisors in the war zone free of the Donbass militias in exchange for a peace deal that never materialized. In both cases, the West just poured more weapons into Ukraine.

This is a very sore subject for Russians. They see these prior deals as efforts to trick and humiliate them. When Trump publicly asked Putin to let the trapped Ukrainian troops in Kursk escape, it set off alarm bells in Moscow. It looked like the same old tricks from the Western tricksters. That is the reason Putin made a point of saying there will never be a Minsk 3. He was telling the Russian public and the Russian elite that he will not be fooled a third time.

That has led to two other things Putin said last week. One is he said the Russian army is ready to finish off the Ukrainian army. That is a bold statement, out of character for Putin. He has been warning of a five- or ten-year war since the West cancelled the Istanbul agreements. To now talk about a quick end of the war suggests that something big is on the drawing board. It could also mean the Ukrainian army is in far worse shape than is being reported.

This comment about the end of the war came with a comment about putting Ukraine into what amounts to receivership. Putin suggested that the post-war process would start with the removal of the Kiev government and put the administration of the country into the hands of a UN group. This caused Trump to call NBC’s Manjaw Crazyeyes and rant about being “pissed off” at Putin. He said he is planning to apply new sanctions to Russia in response to these statements.

What all of this points to is that the Trump peace initiative is dead. The Russians were willing to listen, but now that it is clear that Trump has no leverage over Ukraine or Europe, there is no point in continuing the charade. The war in Ukraine will end by military means and then maybe there can be a negotiated settlement. That was the point Putin was making last week. Whether or not the Trump administration understands this is unknown.

The Pentagon, on the other hand, at least the permanent elements, independent of the administration, does get this. They wrote a long, mendacious thriller for the New York Times where they blame the failure of Project Ukraine on the Ukrainians and to a lesser extent the Trump administration. It is a long post worth reading for no other reason than it is a great example of narrative fantasy. It is written like a spy thriller because it is mostly self-serving fiction.

If you want to know why Western politicians seem to be so clueless about so much, it is because they rely on the storytellers called the media for their version of reality. All over Washington, staffers for elected officials read that Times story, shocked to learn that the American military has been running the war from the start. Normal people have known this since day one because the internet exists and people use it, but elected officials get their reality from the media.

The main point of that work of fiction is to make clear that the Ukraine failure was not the fault of the Military Industrial Complex. All the weapons were, in fact, wonder weapons that totally crushed those primitive Russians. NATO tactics were the best and completely baffled those drunken Russkies. The people who brought you the F-35 want to make clear that when the Russian flag is in Maidan Square, it was the fault of the people who refused to let the American military win the war.

As an aside, if you can get past the self-serving fiction, the article reveals just how close we were to extinction. There were people willing to go all in on attacking Russia, which would have provoked a nuclear retaliation. Unsaid, but implied, is that there were people willing to go nuclear, maybe even preemptively. If the Trump administration is serious about changing foreign policy, a top priority must be hunting down those people and permanently removing them from society.

Putting that aside, what all of this tells us is that there will be no negotiated settlement to the Ukraine war, at least not until things on the battlefield change. Perhaps when the Ukrainian army begins to break in a major way, reality will get over the media firewall into the brains of the political classes in the West. Maybe the Trump administration understands this, maybe not. It does not matter because they are not in control of events, so they can only stand by and watch.

If you like my work and wish to donate, you can buy me a beer. You can sign up for a SubscribeStar or a Substack subscription and get some extra content. You can donate via PayPal. My crypto addresses are here for those who prefer that option. You can send gold bars through the postal service to: Z Media LLC P.O. Box 1047 Berkeley Springs, WV 25411-3047. Thank you for your support!

The Electric Kool-Aid Acid Car

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Last week the Chinese announced what could be a great leap forward in electric car technology when the Chinese firm BYD announced a five-minute charger. They claim their new technology, it is not just a charger but a battery system as well, will allow a driver to get a 250-mile charge in just five minutes. No one knows if this is true, as Chinese companies are almost as dishonest as American media. Even if it is an exaggeration, it could still be a big deal.

The reason this is viewed as a potential game changer is that it is assumed that the main obstacle to widespread adoption of EV’s is the long recharge. It is unreasonable to expect people to take an hour to recharge when on a road trip. Even a thirty-minute recharge time is unappealing. Decades of needing just a few minutes to fill the tank have conditioned people to expect it. Getting EV technology to this point, therefore, is assumed to be the final boss in the game.

That is not true, but the faithful believe it. The main problem with EV’s is that they do not solve a problem. They are a solution in search of problem and so far, the problems they claim to solve have proven to be either nonsense or grotesque boondoggles executed by the worst people in society. Making the weather potato happy is not motivating anyone to buy an electric car, especially when the total cost of ownership remains significantly higher than conventional vehicles.

The electric car is a lot like the electric book in that the engineering challenges somehow blind the proponents to the central problem. Technology is not an end in itself, but a means to an end. Electronic messaging has displaced written letters because the former is better, cheaper, and faster than the latter. If email came with a small risk of electrocution, we would still be writing letters. If every email cost a dollar to send, there would be no such thing as email.

That was the problem with eBooks. They were not better in any way that mattered to people, and they were not cheaper. There were some advantages, like speed of acquisition and the availability of obscure texts. You could also load up on out of copyright material at a pittance. The trouble is not many people need ready access to Summa Theologica, so these advantages made little difference. It is why the old-fashioned book remains dominant.

The same problem plagues the electric car. For ninety percent of drivers, the car is a practical way to move humans from one place to another. Current technology does that as well as anyone could need. Therefore, the new technology is simply trying to match what the old technology does. Outside of enthusiast and technologists, the electric car will always be pointless. Add in the expense and it becomes an expensive solution to a cheaply solved problem.

There are other reasons why the electric car will remain a niche item. The biggest is the cost, which can never be overcome. The cost of powering an electric car is about three times that of powering a normal car. This is despite the fact that we subsidize electricity in America, and we artificially increase the price of gas and diesel. Strip away the policy choices and electric cars have no market. Natural gas-powered cars would have far more promise as an alternative.

Then there is the cost of production and disposal. For generations old cars have been sent to the scrap yard to be stripped for parts and recycled. We have become amazingly good at recycling our cars. Electric vehicles require special handling due to the batteries. Of course, the cost of production is much higher, even with government subsidies all along the way. Then there is the added cost to the power grid that comes in once adoption reaches a certain point.

Enthusiasts insist that all of this is wrong or can be addressed, but the point here is that the charge time is the least of their worries. If the EV was better, faster, and cheaper than regular cars, the charge time would be ignored. The truth is they are not better in any important ways, they are certainly not cheaper. The electric car is certainly faster, but outside the enthusiast niche, this does not matter and what we see is that it does not matter to the sports car enthusiast either.

Now, of course, there is a new problem. The electric car is not cool. It was never really a cool car, but the beautiful people embraced the idea, so that provided the necessary social proof for upper-middle-class white people. The trend setters are now vandalizing Tesla’s, so the cool factor is gone. In fairness, the novelty was wearing off before the kooks took aim at Elon Musk, but now the coolness is gone. The ridiculous looking cyber truck did not help either.

The bigger issue may be a social one. Cars in general, but electric cars, in particular, make the “owner” into a serf. Fixing your own car is now an expensive proposition, meaning you need to depend on the repair system. This is deliberate. Car dealerships make more profit from the repair of cars than the sale of them, so the game is to make the owner dependent on the dealer. Electric cars are the worst for this as they are terrifyingly dangerous to repair.

The most terrifying part is you may not even own the car. You pay for it and have the title, but features are increasingly dependent on the manufacture agreeing with your lifestyle and political choices. Tesla can disable your car remotely. Other car makers are going down this same path. Soon, features like heated seats will be software as a service, meaning you must get permission to use them. The electric car is the face of this dystopian future of man and machine.

None of this means the electric car is dead. There is a place for the technology, just as there is a niche for eBooks. The developers churning out corporate housing projects could install fast charging stations for the soulless automatons who move into these God-forsaken eyesores. Urban areas could be a good use for electric microcars that only go short distances. Young people could also benefit from cars that can be speed limited and tracked at all times.

In the end, the electric car is going to follow the path of other clever engineering projects in that its primary benefit is secondary. The quest for the electric car has made batteries much better. The hunt for new features to justify the cost premium has led to better electronics, information displays and safety features. The dangers of disposal have been a good lesson in reality. The cars themselves may be niche items, but the industry will have benefitted from the exercise.

If you like my work and wish to donate, you can buy me a beer. You can sign up for a SubscribeStar or a Substack subscription and get some extra content. You can donate via PayPal. My crypto addresses are here for those who prefer that option. You can send gold bars through the postal service to: Z Media LLC P.O. Box 1047 Berkeley Springs, WV 25411-3047. Thank you for your support!

The Priestly Class

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One of the features of the first Trump administration was the endless litigation that was intended to throw sand in the gears of the White House. Much of it was irrational and did not hold up under appeal, but that was not the point. The goal was to kill the administration with a thousand cuts. We are seeing a replay of this in round two, but the administration seems prepared for it. There is both a legal strategy and a public relations strategy for dealing with the lawfare.

This lawfare is possible due to one of the many carryovers from the post-Cold War period in which the Washington class was allowed to run wild. The inferior courts where this lawfare is being waged are packed with friends of Washington. Half of the judges were nominated by Republicans and the other half by Democrats, but all were on the list because they are friends of the Blob. Time and again we see that the judges issuing restraining orders on the admin have family in the Blob.

One result of this is the ground floor of the federal judiciary is now the first line of defense for the Blob. Anyone challenging the regulatory state knows they first must make it through this minefield. It is one way to make the cost of challenging the regulatory state prohibitive. Almost all litigation against the administrative state would fail at the first step and then go to appeal. For most potential litigants, dealing with the hyper-politicized district courts was cost prohibitive.

Mostly, the district courts have become a weird form of patronage. These judges come from good schools but were not great private practice attorneys. Most found their way into a federal prosecutor’s office, where they could make friends with the political class to angle for a position on the bench. Once on the bench, they could then lever that into jobs for friends and family in the Blob. District judges are one of the many gatekeepers for entry into the Blob.

Here is where you see the social aspect of managerialism. These judges do not have to be told to oppose the Trump admin. They just know it is their role because everyone they know hates Trump. Judge Boasberg is not defending what he has always claimed to oppose because he is a hypocrite. He is simply putting the welfare of his friends and family ahead of political concerns. He is operating from class consciousness and the class he is defending is the managerial class.

Of course, the court system has been a mess for a long time. The Supreme Court that decided Brown simply invented a new moral code to be imposed on the American people by the judiciary. The court that invented the right to buy contraceptives and abort your baby was doing the same thing. When Justice Kennedy wrote the majority opinion stating that the right to marry is a fundamental right, he did so not as a legal scholar or defender of the Constitution, but as a secular priest.

The judiciary as a priestly class is always a risk because in a liberal political order the law is the manifestation of general morality. One reason we have so many laws in public government versus private government is the morally right choice for every conceivable action must be written down so the shamans in the court system have something to point to when making their declarations. That and it is the only way to overcome the traditions of the people regarding public morality.

It is how in 1985, US District Court Judge Russell Clark began a terror campaign against the people of Missouri. He took over the Kansas City, Missouri School District, forcing the people to pay billions in taxes to underwrite his madman effort to create paradise on earth. This terror campaign was allowed to go on for a decade until the Supreme Court finally got around to ending it. Two billion dollars were spent, and thousands of lives were ruined by a single lunatic judge.

What the district court system has become is a way for the managerial class to impose its morality on the rest of us, via the court system. Since there are over six hundred district judges, there is no escaping them. Every state government must act in the shadow of what is, in effect, an ideological enforcer for the Blob. The district courts are now an ecclesiastical court for the purpose of heading off any signs of apostacy before they gain public support.

In the short term, the only remedy for the Trump administration is to fight this weird priesthood in the court and the court of public opinion. Congress could help by stripping some power from the district courts, but Republicans are useless, so no one should expect that to happen. Chief Judge Roberts could step in, but he is clearly blobbed up, so that is unlikely. His behavior in the Obamacare case made clear he acted under duress to change his position.

In the long run, the solution is to make the district court position temporary, so it loses its value in Washington. Doing a turn as a district judge should be viewed as a resume builder for someone on partner track at a big firm or maybe as a career builder for a lawyer who wants to build his own firm. District judges were supposed to handle mundane administrative tasks to free up the superior court. Making it a steppingstone position would restore that function.

In the even longer run, normalizing the judiciary means the end of ideology, because as long as we remain an ideological state, there will be people who see themselves as priests tasked with enforcing the moral claims of the ideology. The death of ideology means morality is once against rooted in the traditions and customs of the people and the law has a process for that. It is called precedent. Since before Code of Ur-Nammu, this has been the basis of the law and an orderly society.

If you like my work and wish to donate, you can buy me a beer. You can sign up for a SubscribeStar or a Substack subscription and get some extra content. You can donate via PayPal. My crypto addresses are here for those who prefer that option. You can send gold bars through the postal service to: Z Media LLC P.O. Box 1047 Berkeley Springs, WV 25411-3047. Thank you for your support!

Masters And Slaves

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Note #1: Behind the green door, there is a post about why deporting anti-Israel protestors is a good start, a post about the dangers of the Ukraine tarpit, and the Sunday podcast. Subscribe here or here. I was also on the J. Burden show last week and you can listen here.

Note #2: Since we are getting signs of spring, it means it will not be long before it is hot, which means t-shirt weather. Just in time for t-shirt season, we have a new shirt for The Occidental Club, which you can buy here.

One of the stranger things about the first months of the Trump administration has been the reaction of Europe to his peace initiatives. The European “leaders” are, on the one hand, horrified by his peace push, and on the other hand they have rallied themselves to various schemes to stop them. The latest scheme is to create a peacekeeping force that they will insert into Ukraine, something the Russians have repeatedly said is a deal breaker and perhaps even an act of war.

On the surface this looks insane. There are about twenty million Ukrainian refugees in Europe with more trickling in daily. Social welfare rolls are now littered with refugees, who do not speak the local language, so they cannot work. Of course, the EU has been shipping Ukraine billions of Euros plus all its military gear. The war has become another factor eroding social trust and most importantly, trust in the political elite that insists the war must go on forever.

None of this makes any sense until you think about what it means to be in the European political elite in 2025. It means a lifetime of having been very good at winning favor with America or winning favor with the politicians close to America. The dominance of the United States since the war, but especially since the end of the Cold War, has turned the European elite into a slave class. They are the house slaves, who defend the master’s prerogatives against the field slaves.

The surest way to getting yourself exiled in European politics is to speak poorly of the Americans in favor of European interests. Even now, when they all agree Trump is a big meanie, they are obsessed with getting his attention in such a way that it reasserts their position as the loyal house slave. With respect to Ukraine, they feel like they have been sent out of the room as the master talks to another master. They all have their ear to the door, hoping to hear what is being said.

What we are seeing is the result of long subjugation. When one people come to dominate another people, the subjugated will inevitably look to survive and that means finding leaders who are good at currying favor with the master. After the war, Europe was a mess and needed the United States to stave off communism and rebuild the economy of Europe. After the Cold War, the United States was the lone superpower, and Europe became its chief flunky.

It is why there will be no European Donald Trump anytime soon. The idea of such a character terrifies the typical European, who has been conditioned since birth to look up to the house slave. Since a Donald Trump like figure must come from the field slave population, this sort of figure is not just feared by the European house slave population but despised by the field slaves of Europe. They would rather been hacked to death by a machete wielding African than taste freedom.

This also explains the absurdity of the European political class. It is a freak show of carnival acts rather than people with some idea how the world works. You see the same thing in the United States among the black population. Every black congressional district has a ridiculous person as the representative. The newest version is Jasmine Crockett, a representative from Houston, who had to learn how to sound like a ghetto queen in order to rise up the ranks.

The reason Bernardine Dohrn and Bill Ayers had to hire the actor Barry Soetoro to play Barak Obama was that the black community is not able to produce such a figure, so they had to manufacture one. The reason Obama has so quickly disappeared from the conversation is that he was always just an actor playing a role. The show ended and he left the stage. Like a typecast actor, he can only play this role and no one has much interest in the character, so he has sunk into obscurity.

We seem to be seeing something similar with other minority communities in the United States, despite the demographic changes. Boston Mayor Michelle Wu is a fast-rising Asian politician, but she is also an Asian version of Maxine Waters. The reason anyone knows her name is she is willing to perform in front of the cameras, aping the most absurd politics of upper middle-class white people. She is the East Asian version of the Sambo, dancing for her primarily white audience.

A main difference between the minority populations in America and Europe is the United States is actively trying to set Europe free. If Trump could do it, he would leave Europe entirely but he will settle for a reduced role. No one is seriously thinking about creating a black homeland or Asian homeland in America. The Trump administration actively talks about Europe standing on its own two feet again. This is why the current European elite is in such a panic. They do not want to leave the master’s house.

The question with regards to Europe is can it regain itself and do so in a way that does not require the great powers to supervise it? The glimmer of hope is the nationalist parties emerging, but they are often as clownish as the establishment. That or they exist to prevent an alternative elite emerging. Nigel Farage is an entertaining political clown whose main role is to prevent any sort of organized resistance to the nation-wrecking policies of the UK political class.

The answer may be that Europe will have to go through a dark age, so to speak, before it can produce a genuine alternative elite. Given the current demographic trends, what would emerge would be non-European. Alternatively, the nationalist movements gain power and simply ruin the existing political elite and their slave mentality. There is a period of chaos, like the end of communism in Russia, that provides the conditions for a new elite to emerges to rule Europe.

What we see in Europe and America is a good example of how success sets the conditions for decline. Conquering people makes them into dependents and eventually, their dependency becomes too much to carry. The United States is about to cut the Europeans loose for this reason. What suffering comes from the newly liberated house slaves of Europe will seem unfair to them, but three generations of dependency are the cause, not their impending liberation.

If you like my work and wish to donate, you can buy me a beer. You can sign up for a SubscribeStar or a Substack subscription and get some extra content. You can donate via PayPal. My crypto addresses are here for those who prefer that option. You can send gold bars through the postal service to: Z Media LLC P.O. Box 1047 Berkeley Springs, WV 25411-3047. Thank you for your support!