Modern Narodism

Note: I have a final word on car buying the financialization of the car business behind the green door. The regular Taki post is up as well. Comments about it can be made here, as Taki no longer has a comment section.


The political reactionary is an essential component of left-wing mythology, going back to the French Revolution. In fact, most reactionaries are an invention of Left, so they always have an enemy. It is why they tend to go on murder sprees once they gain control of the institutions. The hunt for counter revolutionaries and running dog reactionaries provides fuel for permanent revolution. Once the revolution runs out of enemies, the revolution loses energy and collapses in on itself.

Even though the term reactionary has been abused by the Left, used as a slur against critics and opponents, it does not mean there are no reactionaries. The Thermidorian Reaction was a real thing. The Restoration of the French monarchy was, in part, a reactionary development. The restoration of the monarchy after the death of Cromwell could be classified as a reactionary event. After all, Charles II did order the body of Cromwell to be disinterred and displayed in chains.

While the Left owns the term, political reaction is not just a right-wing phenomenon nor is it strictly political. It can be argued that socialism and communism are reactions to the Industrial Revolution. After all, it was the Marxist who popularized the term. It was an 19th century pejorative for the current state of the world at the time. Various forms of socialism were a reaction to the sudden growth of a new class, who gained their wealth and power through the acquisition of industrial capital.

Narodism, which was a socialist movement in pre-revolutionary Russia, was a reaction to both the rise of capital and tsarism. The Narodniks, as they were called at the time, were a form of agrarian socialism rooted in the idea that the wealth of Russia was in the peasantry and small craftsman in the countryside. Initially, they were a reaction to the size and scale of the tsarist system of rule. They soon evolved into a reaction to the growing power of capital, just like other socialists of the age.

The interesting thing about the Narodniks is they were more than just a political or economic movement. They were a cultural movement as well. Faced with the sheer size of the tsarist system and the rapid cultural changes promised by the growth of industry, their response was to go back to the cultural roots of the people. The term Narodism comes from the word “narod”, a word equivalent to volk, which is a term familiar to most on the dissident right.

This is something relevant to this age. The technological revolution has allowed the managerial state to grow into something inconceivably massive. We live in an age in which there is little privacy. The eyes of the system are everywhere, even in our homes and in our private conversations. There is no way to escape the unblinking eye of the surveillance state. One force behind the current unrest is the growing sense that all of us are subject to the unwanted gaze of the managerial state.

Another aspect is the rise of the new class. Like the sudden appearance of the capital class in the industrial revolution, we suddenly have a new powerful class that gained its power and wealth through the capture of information. This new class did not get rich by building a better mouse trap. They got rich capturing an information bottleneck or a monopoly of some information service. Michael Bloomberg literally got rich from a monopoly on information to the financial service sector.

Another parallel to the Narodniks we are seeing is the “back to the people” approach by the various tribes on the dissident right. The Narodniks adopted the traditional clothing of the rural people and worked hard to portray themselves as the vanguard of the authentic Russian people. We see something like that on the dissident right. There is a desire to return to a more authentic way of living, rooted in local community. Like the Narodniks, the dissident right is more cultural than political.

The thing is though, the argument in favor of the Narodniks being reactionary falls apart when you look at their overall goals. They may have wanted to “return to the people” in a cultural and spiritual sense, but they did not want to return to a past system. Their program was a departure from the past and present. A proper way to describe what they imagined was something like a return to a point in the past and a do-over back to this point, but with a different set of choices.

This is something that kicks around the dissident right. There is an understanding that there is no going back. Even if you could restore things back to some point in the past when things were better, the roots of the present lie in that past. Liberal democracy is the fruit of American history. A do-over would most likely lead us right back to where we are now. In this regard, modern dissidents are more realistic than the Narodniks in that there is no idealized past or population at the center.

In this regard, civic nationalism is closer to modern reaction. They have created an idealized and largely fictional past. It was a series of innovation by their enemy that sent the country off course. They believe that if we just return to “our constitutional principles” everything will magically get back on the righteous path. Not only do they want to rip the past seventy years from the history books, but they would also like to remove all of the history that makes their imagined past plausible.

One last note on the Narodniks relative to this age. For the most part, the movement was a failure in that it failed to achieve any of its goals, other than the assassination of the Tsar in 1881. Their effort to educate and train the peasantry into a revolutionary force was a failure. The Narodniks were mostly urban intellectuals who had no understanding of the peasants. The assassination of the Tsar lost them whatever support they had among the people.

What they did, however, is lay the groundwork for what came next. Their idea of building an alternative base of power outside the system was adopted by 20th century revolutionary movements. Their tactics also informed others. Their organizational style and use of small group tactics were also a forerunner. Their ideas on generating debate outside what was allowed was an important contribution. They understood that the people needed to be reconditioned before they could challenge the system.

This is the final parallel to modern dissidents. Much of what goes on in dissident politics is a debate about challenging the prevailing orthodoxy. While we do not have peasants in the traditional sense, we do have them in a spiritual sense. Rewiring how they think of themselves and the system that created them, the “converting normie” thing, is an important part of dissident politics. Like the Narodniks, this must happen in small groups using non-traditional tactics to work around the system.

This is why the Narodniks and modern dissidents would fall outside the traditional definition of reactionary. The initial energy is a reaction to the changes in the culture brought about by rapid innovation, but there is no desire to return to the past. Instead, these movements are pre-reactionary and proto-revolutionary, a transition phase in the response to the current age. Dissident politics is a rejection of the modern and what created it, with a vague understanding of what comes next.


A new year brings new changes. The same is true for this site as we adjust to the reality of managerial authoritarianism. That means embracing crypto for when the inevitable happens and the traditional outlets are closed. Now more than ever it is important to support the voices that support you. Five bucks a month is not a lot to ask. If you prefer other ways of donating, look at the donate page. Thank you.


Promotions: We have a new addition to the list. Havamal Soap Works is the maker of natural, handmade soap and bath products. If you are looking to reduce the volume of man-made chemicals in your life, all-natural personal products are a good start. If you use this link you get 15% off of your purchase.

The good folks at Alaska Chaga are offering a ten percent discount to readers of this site. You just click on the this link and they take care of the rest. About a year ago they sent me some of their stuff. Up until that point, I had never heard of chaga, but I gave a try and it is very good. It is a tea, but it has a mild flavor. It’s autumn here in Lagos, so it is my daily beverage now.

Minter & Richter Designs makes high-quality, hand-made by one guy in Boston, titanium wedding rings for men and women and they are now offering readers a fifteen percent discount on purchases if you use this link.   If you are headed to Boston, they are also offering my readers 20% off their 5-star rated Airbnb.  Just email them directly to book at sa***@*********************ns.com.


The Mumbly Joe Problem

An old expression mothers used to say to their children in the before times was, “Be careful what you wish for.” Getting what you want often comes with unforeseen and undesirable consequences. The logic behind it is that a strong desire for something is a near term thing. You want whatever it is now. The trade-off that comes with that thing you desire, on the other hand, has long term consequences. This is something that the managerial class will be experiencing this year.

The 2016 election became an identity event for the managerial class. The cool belief to hold was that Trump was a rube and his voters were all yesterday men condemned to the dust bin of history. The same people who thought the same thing of Hillary Clinton in 2008 were suddenly sure she was the future. It is the nature of luxury beliefs that they have no intrinsic value. What matters is their moral potency in the moment. In 2008 the cool kids mocked Clinton. In 2016 they loved her.

The traumatizing effect of having those luxury beliefs rejected and mocked by the voting public in the 2016 election transformed opposition to Trump from a luxury belief into a moral imperative. Opposing Trump before the election was like any other fashion statement in that it was confirmatory. The beautiful people were confirming a truth by displaying it to the public. When that was mocked by Trump and the public, opposing Trump became the identity of these people. It was who they are.

This is an important element. When the starting point of your identity is opposition to some group or other group identity, there can be no compromise with that group. The managerial class became class conscious and part of their identity was opposition to the hoi polloi. The great and the good were the moral superiors of the masses. Their job was to guide them, but when the masses rejected them, they could not turnaround and agree with them. This is what made it impossible to work with Trump.

Who they were was entirely bound up in getting rid of Trump. For four years the great and good plotted and schemed, without thinking much about what comes after they get what they wanted. They rigged their own primary just to avoid having Bernie Sanders win the nomination, because they knew he would lose. They rallied behind a time-serving dullard in the early stages of dementia. They pulled out all the stops to “fortify” the general election and install that old man in the White House.

Now, they have a dementia patient running the government. Every day it becomes clear that Mumbly Joe is struggling with serious cognitive decline. He was not the brightest bulb in the bunch when he was in his prime. Now, he sounds like an old man in a nursing home, parked in front of the window. It has already reached the point where they cannot trust him to speak with world leaders. It is not unreasonable to assume that he will not be able to perform his duties in the near future.

Here is where we see that the great and the good are not the master villains many on this side need to believe. Sure, South Asian money bought the VP slot for one of their own, but no one seriously thought about what happens when Biden loses his marbles and has to be removed from office. The political class tried twice to remove Trump and could not pull it off, despite his own party ready to support the effort. How likely are they to engineer a coup against the guy they installed?

This is not to say they could not remove him if he is just a drooling lump, but that is not how cognitive decline works. People in his condition have good days and bad days and within the day they have good periods and bad periods. What happens over time is the bad stretches get longer and more frequent. Mumbly Joe could be borderline for many months before it is clear he is no longer fit. This is fine if nothing important happens for the next four years, but that’s rather unlikely.

Then there is the fact that a White House is like court. All of those appointees have their own agendas and they often represent narrow interests. Having a weak man in the Oval Office is always ideal from the perspective of these people. Then there is Biden’s wife, who is quickly becoming the Edith Wilson of this administration. It is not hard to see how the players inside the administration can exploit this reality to secure their own positions in exchange for remaining silent about Biden’s health.

Let’s assume for a second that Harris, Pelosi and Schumer come up with a scheme whereby they can remove Biden and install Harris. They would either have to rope in a majority of the cabinet or pass legislation to establish a committee that would determine the fitness of Biden. This would throw the government into crisis. Public approval of Congress is already approaching single digits and half the public is convinced the last election was rigged. A crisis could easily get out of hand.

If by some miracle Biden does them a favor and drops dead before they have to remove him, they are still not out of the woods as Harris has zero support. Most of her own party thinks she is an obnoxious dimwit. The public would rally initially, but after a few speeches she would remind everyone why they would rather have cancer than have her on their televisions. She would quickly become a highly unpleasant version of Gerald Ford, a place holder until things could be sorted.

The point is the managerial class got their wish. The bad orange man is gone, but it is going to come with a hefty price tag. It will not be long before many behind the rigging of the election will have buyer’s remorse. That will only add more fuel to the fire. Given that the geniuses behind this caper could not see just a few months down the road, it is unlikely they will navigate this minefield they created for themselves. That’s why they want those troops in the city. They know they will need them.


A new year brings new changes. The same is true for this site as we adjust to the reality of managerial authoritarianism. That means embracing crypto for when the inevitable happens and the traditional outlets are closed. Now more than ever it is important to support the voices that support you. Five bucks a month is not a lot to ask. If you prefer other ways of donating, look at the donate page. Thank you.


Promotions: We have a new addition to the list. Havamal Soap Works is the maker of natural, handmade soap and bath products. If you are looking to reduce the volume of man-made chemicals in your life, all-natural personal products are a good start. If you use this link you get 15% off of your purchase.

The good folks at Alaska Chaga are offering a ten percent discount to readers of this site. You just click on the this link and they take care of the rest. About a year ago they sent me some of their stuff. Up until that point, I had never heard of chaga, but I gave a try and it is very good. It is a tea, but it has a mild flavor. It’s autumn here in Lagos, so it is my daily beverage now.

Minter & Richter Designs makes high-quality, hand-made by one guy in Boston, titanium wedding rings for men and women and they are now offering readers a fifteen percent discount on purchases if you use this link.   If you are headed to Boston, they are also offering my readers 20% off their 5-star rated Airbnb.  Just email them directly to book at sa***@*********************ns.com.


Revolt In The Synopticon

Revolt in a normal human society is made easier by the fact that everyone knows who is in charge and the institutions they control. In a despotism, the name of the despot and his supporters is known. The institutions they control and their relative power is also well known. The same is true of a republic when it degrades into oligarchy. Picking sides comes naturally. In the synopticon, this is not so clear, because everyone is an agent of the system, a potential threat to anyone resisting the system.

That is the first thing a political dissident living within the modern liberal democracy must accept about their condition. Since everyone operates within a lattice work of interconnected data collection nodes, the sides are not clear. The people at the top, ostensibly running the system, rarely act directly. They often appear to be carried along by the system itself. Groups that form up to reform some aspect of the system are easily coopted by the system to defend the system from change.

This is the hardest thing to grasp about any human relations. Half the population will also seek to assign blame to an individual or group of individuals. They simply lack the capacity to understand how events, ideas, and the system in which they operate can come together within a society. They insist the problem is someone holding office or a group of people running an institution or party. While not entirely wrong, it is an antiquated view of the world that make resistance self-defeating.

The simplest way of thinking of this is the modern prison. The guards rely on cameras, listening devices and other detection systems. They also rely on snitches in the prison population to tip them off to trouble. Ideally, the prison system wants every prisoner distrusting every other prisoner. If they are unable and unwilling to cooperate, then they are just a collection of rebellious individuals. No matter how clever one may be, the rest are there to undermine the effort due to misplaced self-interest.

In a society in which everyone watches everyone, knowingly or otherwise, and inanimate objects like ATM’s and mobile phones can be turned into snitches for the system, the people are isolated individuals suspended in the system. The unaware are happily holding up their mobile devices, snitching for the system at every event, while the aware are doing the same, thinking they are fighting the man. This is why the most powerful people think they are the resistance, fighting populism.

This is the first rule of revolution within the synopticon. The war is not against people, but against the system itself. The people involved may be bad actors, but even the people who appear to be good actors, can be bad actors, because they fail to grasp that they are part of the system. This is something the cleverer inmates figure out about the prison system. In order to have any sense of freedom, they continually throw sand in the gears of the system and encourages others to do the same.

As a practical matter, this first means disconnecting as much as possible from the information grid. This is not easy, as it so much of it is convenient. That mobile device feels necessary, because it is convenient. Using Apple Pay or a credit card for all purchases is easy. It is also easy for the authorities to track you down if you show up at the wrong political event or hang around the wrong people. The people at the Capitol on January 6 are learning this lesson the hard way.

This is the first step for any political actor. Politics and the normal aspects of life must be separate spheres, physically and mentally. This means political events are mobile device free. Communication is through the densest channel possible. Reading texts is simple for the system. Reading e-mail is hard. Reading lips through CCTV cameras is impossible, despite what the movies claim. Never write when you can speak, never speak when you can nod. That is the way of dissent in the synopticon.

There is another lesson from the criminal world that applies here. The reformer in the synopticon is always policing his area for nodes of the system. In the criminal sphere, this means listening devices and snitches. The smart actor is always testing the people and environment for security risks. For reformers, this means imposing rules on others about their interaction with the system. It means developing codes of conduct to enforce discipline about communications and interaction with the system.

As a practical matter, this means political resistance starts with community. Entrance into the community requires increasing levels of commitment. At the periphery are people who always being evaluated to see if they can be an asset to the political community and perhaps one day join it. As they demonstrate their worth and commitment, they are required to make greater sacrifices for the whole in order to go deeper into the heart of the community.

In other words, organizing in the synopticon must operate within the blind spots of the system, which in the digital age means the analog space. While the system can detect and predict community formation, it needs the inputs through the compound eye of the system to form the data set. The invisible rules of a community operating face to face are outside the vision of the system. The most dangerous thing to the synopticon is small groups of people meeting in person to form bonds.

Finally, the reformer in the synopticon must embrace the Gerasimov Doctrine. This is the Russian approach to modern war and politics. The days of nations facing off across a field in a well-define set-piece battle are long gone. War and politics have converged in the information age. Those color revolutions sponsored by American intelligence are good examples of modern war. The appearance of “little green men” in Crimea during the American overthrow of the Ukrainian government is another.

Domestically, this means something like systemic sabotage. The more bad data fed into the system, the less valuable the information it creates. The less valuable the information to the people relying on it, the less likely they are to trust it. In the information age, war is an information war. Jamming the system with bogus data is one front on that war. Similarly, causing unnecessary responses from the system wastes resources that could be used elsewhere.

This is why leafletting, for example, is a powerful weapon. It is cheap for the one side, but expensive for the system. Police departments running around looking for the person behind a leafletting campaign is a drain on the system. It also erodes the trust between the people reliant on the system and the system itself. The same would be true of sit-ins and candlelight vigils outside the green zone in Washington. It would turn one weapon of the color revolution against the people wielding it.

Another example of how a multifront war against the compound eye of the synopticon is the short squeeze ushered in by retail investors. The people reliant on the system assumed the other side was operating from predictable motives. When it turned out to be otherwise, they had no rational response. Suddenly, the financial class has a new front in their war on the middle-class. Do this a dozen times and the system is a giant swatting at flies.

This is the essence of the Gerasimov Doctrine. War in the information age is multidimensional and, irregular and ad-hoc. It is not about locating the enemy and engaging him in battle. The enemy is all around in the form of the system. This is particularly true for the reformer. Revolt in the synopticon is about hacking that system so it becomes unpredictable and unreliable. This means jamming it with bad data, depriving it of useful data and overloading it at its weak points.


A new year brings new changes. The same is true for this site as we adjust to the reality of managerial authoritarianism. That means embracing crypto for when the inevitable happens and the traditional outlets are closed. Now more than ever it is important to support the voices that support you. Five bucks a month is not a lot to ask. If you prefer other ways of donating, look at the donate page. Thank you.


Promotions: We have a new addition to the list. Havamal Soap Works is the maker of natural, handmade soap and bath products. If you are looking to reduce the volume of man-made chemicals in your life, all-natural personal products are a good start. If you use this link you get 15% off of your purchase.

The good folks at Alaska Chaga are offering a ten percent discount to readers of this site. You just click on the this link and they take care of the rest. About a year ago they sent me some of their stuff. Up until that point, I had never heard of chaga, but I gave a try and it is very good. It is a tea, but it has a mild flavor. It’s autumn here in Lagos, so it is my daily beverage now.

Minter & Richter Designs makes high-quality, hand-made by one guy in Boston, titanium wedding rings for men and women and they are now offering readers a fifteen percent discount on purchases if you use this link.   If you are headed to Boston, they are also offering my readers 20% off their 5-star rated Airbnb.  Just email them directly to book at sales@minterandrichterdesigns.com.


The Ride Never Ends

The reboot of last year’s big political flop, otherwise known as Trump Impeachment, hit the big stage in DC this week. The Senate kicked off the show with a debate about the constitutionality of the whole thing. The old rule of vaudeville was that you start every show with some jokes to warm up the audience. It is good to see Washington bringing back the old traditions for their political dramas. To the shock of no one, the Senate voted in favor of the claim that this nonsense is constitutional.

The one thing missing from this reboot is the boggle-eyed lunatic who was the master of ceremonies for the first one. Adam Schiff is sitting this out. There is some debate about whether having a paranoid schizophrenic be the star of the show was the reason the first try at this was an embarrassing flop. They also had the fat guy who poos himself in public as the co-star. The whole thing turned into a poorly made version of Dumb and Dumber, which is a problem when you are putting on a drama.

The early reviews say this reboot is looking like the high school version of an old Broadway musical. The writing is good, but the people playing the roles are far too small for the costumes they are wearing. Even without Trump looming over it as a reminder that our politics have long ago descended into farce, the idea of impeaching a man who is out of office is too much to overcome. The public is mostly ignoring it, despite the month long hype about the imaginary insurrection.

Like so much the shadowy cabal that runs this place has done over the last several years, this stunt just serves to undermine the system they operate. In a world where massive election irregularities are ignored and dismissed by the politicians, it is tough to take those same politicians seriously when they bang on about their democracy or imaginary threats to it. If they were really worried about their democracy, maybe they would do something about the voting system.

What this looks like is theater for the people inside the wire so they can be reminded there is a wire, and it must be maintained. The green zone they have erected for themselves is not simply an overreaction. It is a symbol of the spiritual and cultural divide between the people running this place and the rest of us. The hive minded have now created a physical manifestation of their world view. From now on, people inside will be made to show they are loyal to inside, not outside.

Putting that aside, the thumbless people behind this farce are creating a new set of problems for themselves with this. American politics has always been a game of bad cop worse cop. One side tells 20% of white people they will push through some nation wrecking scheme, while the other side tells 40% of white people that they will not roll back the last nation wrecking scheme, but they will stop this one. This has kept white people engaged in a process that has slowly dispossessed them.

The rigged election and the response to it broke this system. Despite the Republicans pulling all the usual tricks in an effort to scare their voters in Georgia during the special election, many of those voters stayed home. The old gags did not work, because the election put the lie to those old gags. Impeachment promises to hammer home this point to tens of millions of white people. One party hates them, and the other party really hates them. They do not have a voice in this system.

We have already seen some Republican Senators shed their skin suits, revealing their scaly natural exterior. Six of them slithered over to the other side, coiling around the legs of their master, to vote in favor of this farce. You can be sure they will be voting to convict when the time comes. Conventional wisdom says the Senate will not get the votes to convict, but given the state of things, that is not a good bet. The GOP would love to be rid of Trump forever and this is how they do it.

If you assume that a third of the GOP senators hate Trump and his voters, that is roughly 15 votes right there. Then you have the deluded members who think they can inherit that vote if Trump is forced off the stage. They think their kinder gentler populism will win the day. Then there are those who are taking bribes. The level of corruption in Washington is such that we have to assume all of them are on the pad. Maybe the ChiComs tell them to support a conviction.

Either way, the whole thing will most likely further undermine the Republicans as the security fence for the Democrats. This is very bad for the political class, as it further reinforces the notion that there are now two sides. Those inside the razor wire green zone and those outside it. Given the general cluelessness of the people running both parties, this is a very dangerous environment for them. They need to people trusting in the system, even if they do not trust the people running the system.

There is one interesting side story to this. Trump put up a solid defense of himself in the first impeachment circus. He hired competent lawyers and treated the whole thing with far more respect than it deserved. This time he has hired a B-team that is more concerned with melodrama than the process. It may be that Trump would welcome a conviction and disqualification. This lets him go back to being a gassy blowhard on-line, without having to deliver any of the things he promises.

Another bit of subplot here is that the larger show that was the “great fortifying of our democracy”, which looked a lot like coup, is coming to a close. This is the last bit of the drama the new regime can use to distract from reality. That reality is they own the mess they created in their effort to overthrow the system. The crumbling economy, the Covid fiasco, the bloated financial system, all of it. They will not have Trump to kick around anymore, so they will own what comes next. Good luck with that.


A new year brings new changes. The same is true for this site as we adjust to the reality of managerial authoritarianism. That means embracing crypto for when the inevitable happens and the traditional outlets are closed. Now more than ever it is important to support the voices that support you. Five bucks a month is not a lot to ask. If you prefer other ways of donating, look at the donate page. Thank you.


Promotions: We have a new addition to the list. Havamal Soap Works is the maker of natural, handmade soap and bath products. If you are looking to reduce the volume of man-made chemicals in your life, all-natural personal products are a good start. If you use this link you get 15% off of your purchase.

The good folks at Alaska Chaga are offering a ten percent discount to readers of this site. You just click on the this link and they take care of the rest. About a year ago they sent me some of their stuff. Up until that point, I had never heard of chaga, but I gave a try and it is very good. It is a tea, but it has a mild flavor. It’s autumn here in Lagos, so it is my daily beverage now.

Minter & Richter Designs makes high-quality, hand-made by one guy in Boston, titanium wedding rings for men and women and they are now offering readers a fifteen percent discount on purchases if you use this link.   If you are headed to Boston, they are also offering my readers 20% off their 5-star rated Airbnb.  Just email them directly to book at sa***@*********************ns.com.


Who’s To Blame?

Note: The plugin I use for commenting broke for some unknown reason yesterday, which is why the comments disappeared. I disabled it so the default comment system is now running. it’s not great, but until the plugin is fixed, it will do.


Over the holidays, the great Jared Taylor was on one of the many live streams that pop up during the that time. He was asked if as a Southerner, he found some pleasure in seeing the statue toppling mobs now turning on statues of Lincoln. The irony of nonwhites going after Lincoln as a white supremacist is hard to miss. Taylor demurred, saying something along the lines that he abhorred any attacks on whites or white history, even if the person in question made war on his ancestors.

It was an interesting answer as it touches on the central problem of the current crisis we see playing out in America. Who’s to blame for it? The basic starting point of problem solving is to identify the problem and then identify the cause. When the mortgage market fell apart a decade ago, people blamed the bankers. Some people blamed the credit agencies or the regulators. There was plenty of blame to go around, so lots of people were blamed, but no one was punished.

In the case of the ongoing pogroms against white people, there is not much talk about who is responsible for it. Part of that is due to the prohibitions against white people talking about being white. One of the great ironies of this crisis is that the media is filled with invective about white people, but you will never see a white person start a sentence with “as a white person.” Whiteness is a thing that is only allowed to be a hobgoblin in the minds and mouths of the anti-whites.

Getting back to the Taylor example, he cannot laugh at the mob turning on Lincoln, because Lincoln was white, but that would apply to the mob as well. If the people doing the toppling are white, then the Taylor rule prevents a pro-white partisan from blaming them for it. An inescapable fact of the current crisis is the people leading the anti-white pogrom are often white or white presenting. Giving white people a pass on partisan grounds creates a problem when trying to assign blame.

This is why the anti-white pogroms have met so little resistance thus far. On the one hand you have the taboo against white people taking their own side. On the other hand, you have the face of the anti-white program being white or white presenting. If all of the anti-whites were black, then the problem of assigning blame would be simpler, but the leading anti-whites are almost always a pale face. The chief racketeer in the grievance rackets is a white woman named Robin DiAngelo.

The attacks on white people are just one example. The financialization of the economy starting in the 1980’s has created a massive wealth disparity. America now has an invisible over-class that owns almost all of the wealth. What they do not own directly, they control through what amounts to regulatory capture. They control the institutions that set the rules on how you can use your property. Inevitably, those rules favor the greed heads that control the financial system.

How did this happen? Who is responsible for it? Conservative will say that you cannot blame capitalism or free markets. Just like the taboo against whites taking their own side, they enforce a taboo against questioning the current economic order. Similarly, you cannot blame rich people, as that’s class warfare. If you do not like the rich people running things, get rich and challenge them. It is a version of build a better mousetrap so the world will beat a path to your door.

The Left side of the political class has an answer. They say the reason for the massive wealth disparity is white privilege and systemic racism. They focus on the white and white presenting faces running the corporations. This is a dangerous game for obvious reasons, so it is deliberately made absurd. The result, however, is white people are left with two choices when wondering who is to blame for this. They can either blame themselves or celebrate their dispossession.

This shape shifting that prevents the people from identifying the cause of the problems that plague their society is the result of democracy. When everyone has a vote, either in an election or in the economy, then everyone is to blame for the result. Don’t like woke capital? Don’t buy from it. Don’t like woke government? Don’t vote for it. The fact that no one actually voted for it or demanded it makes no difference. The blame for every problem is the imaginary neighbor who is demanding it.

This is one reason for the increasing unhappiness. It is not just the problems people can see all around them. It is the fact that there is no acceptable cause. People are left to blame themselves and their neighbors. If everyone is to blame, then everyone is the problem and everyone is in a war with everyone. The democratization of a society means the democratizing of blame. Self-hatred and self-loathing become the creed of the majority, with only the minorities are able to find a suitable enemy.

This is an unnatural condition as people are naturally inclined to find the source of their unhappiness and make that the focus of their anger. Eric Hoffer noted that “mass movements can rise and spread without belief in a God, but never without belief in a devil.” Get enough angry people together with the raw material for a shared identity and they will find their devil. This is what makes being in the ruling class a dangerous game right now. It is why they are stacking the sandbags so high.

This is usually where the conservative pops back in and says it is wrong to pin the blame on people when the problem is systemic. The thing is though, the people at the top of any society have a duty to the system that creates them. They are the stewards of the system. The ruling elite of our liberal democracy are responsible for economic and cultural troubles underlying the current crisis. It is their failure to do their duty as a ruling elite that has led us to this point. They are to blame.


A new year brings new changes. The same is true for this site as we adjust to the reality of managerial authoritarianism. That means embracing crypto for when the inevitable happens and the traditional outlets are closed. Now more than ever it is important to support the voices that support you. Five bucks a month is not a lot to ask. If you prefer other ways of donating, look at the donate page. Thank you.


Promotions: We have a new addition to the list. Havamal Soap Works is the maker of natural, handmade soap and bath products. If you are looking to reduce the volume of man-made chemicals in your life, all-natural personal products are a good start. If you use this link you get 15% off of your purchase.

The good folks at Alaska Chaga are offering a ten percent discount to readers of this site. You just click on the this link and they take care of the rest. About a year ago they sent me some of their stuff. Up until that point, I had never heard of chaga, but I gave a try and it is very good. It is a tea, but it has a mild flavor. It’s autumn here in Lagos, so it is my daily beverage now.

Minter & Richter Designs makes high-quality, hand-made by one guy in Boston, titanium wedding rings for men and women and they are now offering readers a fifteen percent discount on purchases if you use this link.   If you are headed to Boston, they are also offering my readers 20% off their 5-star rated Airbnb.  Just email them directly to book at sa***@*********************ns.com.


The Black And Reds

Note: The Monday Taki piece is up and the topic is the moral dimension to the ongoing social war. There are a few new items up behind the green door as well.


The “Black and Tans” were a police force recruited by the British into the Royal Irish Constabulary (RIC) as something like a paramilitary force or a militia during the Irish War of Independence. The majority were unemployed former soldiers who fought in the Great War, but many were criminals and even prisoners. They got their nickname from the uniforms they wore. They were supposed to help the overstretched RIC maintain order and deal with the Irish Republican Army.

In reality, they were something like a mob of thugs unleashed on the Irish population as a form of state sponsored terrorism. While most had military training, there was no code of conduct to control their actions. They were known for their brutal tactics and their indiscriminate attacks on civilians in retaliation for IRA attacks on them. Because the men recruited into the ranks were young and had few prospects at home, they were happy to do whatever was asked to the Irish population.

This is a useful historical example to keep in mind when reading this Time article on how the oligarchs rigged the 2020 election. Most people have fixated on the audacity of posting such a piece. Usually, people who commit crimes try to conceal their actions, but in this case, the principles are willing to boast about it. We are in the midst of a great purge of our institutions of anyone who questions the legitimacy of the election and here we have these people confirming many of the claims.

The motivation behind writing that piece is spite, of course. The half-hearted talk of bringing unity after the election has not fooled many people. That Time piece makes clear that there can be no unity, because there will be no peace. As the article says, the point of rigging the election was to “fortify” what they call democracy, but which the rest of us call their permanent rule. They were prepared to use any means necessary to defend their rights and privileges from the people.

One of those tactics, of course, was the unleashing of mobs onto the public starting with the highly orchestrated George Floyd incident. This was a combination of Black Lives Matter, created by the Obama administration during his second term, and ANTIFA, created and funded by the Soros organization. One group allegedly represents the interest of blacks, while the other group claims to be the inheritors of the communist revolutionary spirit. It was blacks and reds.

This is the truly remarkable aspect of that post. For months, the evidence piled up suggesting the mobs were manufactured. There seemed to be someone or a group of people funding and directing them. Early in the Time story, it boasts “In a way, Trump was right. There was a conspiracy unfolding behind the scenes, one that both curtailed the protests and coordinated the resistance from CEOs. Both surprises were the result of an informal alliance between left-wing activists and business titans.”

In other words, the suspicions were correct. The left-wing terror networks that operate out of not-for-profits like Pro Publica and The Bail Project, funneled cash, supplies and instructions to the mobs on the streets. That cash came from the CEO’s and their money changers in Washington, Silicon Valley and New York. This money was offered in exchange for violent street actions intended to either provoke a right-wing reaction or embarrass the Trump administration.

This sounds a lot like what the British did in Ireland. Unable to win popular support in their crusade against Trump, they unleashed thugs with official protection to terrorize the population. State sponsored terror is a well-known tactic to control a population, but it is generally considered the bane of civilized government. This is the sort of thing you expect from authoritarian societies or occupied ones. It was something the Bolsheviks did after the revolution, which is ironic given the people involved.

A century ago, the Irish Republican Army figured out that winning the hearts and minds of the people made British occupation expensive. When the British could not recruit Irish into the police force, they brought in the thugs that became known as the Black and Tans. These thugs only made it easier for the IRA to win the public over to the cause and the IRA was quick to take advantage of it. Eventually, the British had no choice but to abandon the tactic and disband the unit.

Here in modern America, the situation is different, at least for now, so the Black and Reds are seen as effective. They have not been officially disbanded by the ruling regime, even if they have been sidelined. Recently, Antifa turned up in Washington, harassing diners and fighting with the police. They will no doubt be out this summer causing trouble along with Black Lives Matter. Unlike the Black and Tans, they have not been promised pensions or positions in the government.

Even so, it is a useful comparison. The British unleashed the Black and Tans because they did not see the Irish as humans. They were a population that had to be controlled, like wild animals or maybe prisoners. The people on the other side of the razor wire and in the bunkered communities of Silicon Valley and Wall Street look at the rest of us, especially the white population, the same way. We are no longer humans, so they are free to do as they like in order to control us.

The lesson is that in a social war, every event must be used to rally support for your side and put the other side in a bad light. The Black and Tans undermined the British position with both the Irish and British public, because the IRA made them the face of the British occupation. That is what must happen here. These mobs must be closely tied to the CEO’s and politicians directing them. The Biden presidency must be known as the Antifa presidency. Make them own their golem.


A new year brings new changes. The same is true for this site as we adjust to the reality of managerial authoritarianism. That means embracing crypto for when the inevitable happens and the traditional outlets are closed. Now more than ever it is important to support the voices that support you. Five bucks a month is not a lot to ask. If you prefer other ways of donating, look at the donate page. Thank you.


Promotions: We have a new addition to the list. Havamal Soap Works is the maker of natural, handmade soap and bath products. If you are looking to reduce the volume of man-made chemicals in your life, all-natural personal products are a good start. If you use this link you get 15% off of your purchase.

The good folks at Alaska Chaga are offering a ten percent discount to readers of this site. You just click on the this link and they take care of the rest. About a year ago they sent me some of their stuff. Up until that point, I had never heard of chaga, but I gave a try and it is very good. It is a tea, but it has a mild flavor. It’s autumn here in Lagos, so it is my daily beverage now.

Minter & Richter Designs makes high-quality, hand-made by one guy in Boston, titanium wedding rings for men and women and they are now offering readers a fifteen percent discount on purchases if you use this link.   If you are headed to Boston, they are also offering my readers 20% off their 5-star rated Airbnb.  Just email them directly to book at sa***@*********************ns.com.


 

Feudal Excess

The paleoconservative thinker, Sam Francis, developed the concept of anarcho- tyranny, which is when the state tyrannically regulates citizens’ lives yet is unable or unwilling to perform the basics of rule. For example, the government put speed cameras and red-light cameras up, in order to catch small violations, but if your car gets stolen, the cops will not bother looking for it. The tyranny is the micromanagement of the good citizens while driving. The anarchy is ignoring the car thieves.

It is a great framing because it is both true and easily validated. It is one of those observations that reminds us that conservatism was not always a collection of toadies and flunkies validating the latest Progressive fads. The Right used to have smart and thoughtful men genuinely concerned with the direction of Western society. They also had the courage to honestly examine what was happening. In other words, the current crisis did not sneak up on us like the fog.

Putting that aside, the paleos focused mainly on the management side of things with regards to anarcho-tyranny. Police departments are an easy example, but a similar process happened with regulatory agencies, large corporations, the academy, and the mass media. In fact, they saw these as tectonic plates of the ruling class that were slowly converging. Of course, this is what has happened. All of the power centers are occupied with the same sorts of people.

Something similar seems to have happened to the political class. It used to be that politicians spent a lot of time pretending to know the issues so they could connect with their voters. The old expression was that all politics were local. What that mean was the politicians needed to spend time among their voters, discussing the issues that concerned them. This was especially true of representative. Congressman put a heavy emphasis on being back in their districts.

You do not have to go back to far when it was rare for a politician to talk about big ideas or abstract concepts. Presidents, when giving national speeches would blather on about the meaning of America or the importance of patriotism. The rest stuck to things like making the roads better, fixing up the schools and helping business. The Democrats would talk about worker rights, in the context of higher wages. The Republicans would talk about less regulation so business could succeed.

In the 1990’s, a common thing was the town hall meeting, which was not really a town hall meeting. It was an expression for when the representative would show up in his district and take questions from his voters. This was the chance for the politician to show how much he cared about the local issues. The way he did that was by having a detailed knowledge of the facts. If someone asked about the roads, he knew all the bills and bond issues related to road repair.

This is no longer the case. In fact, the last time you are likely see your representative in person is when they are running as a challenger. Once they win office, they become an avatar on-line and on television. They never venture out among the people and the old town hall idea no longer exists. For a while they did conference calls, but now they are staged Zoom sessions with actors asking questions. In fact, Congress could now be doing its thing on a sound stage in Hollywood and no one would know.

On top of that, the avatars now talk in riddles. They lurch from one emotional crisis to the next, speaking about it in a creepy overwrought language. Minor misstatements are described as “horrendous” and “terrifying.” The primary feature of our politics now is that every ant is an elephant, and no one dares speak about the herd of elephants standing in the room. Anarcho-tyranny in politics results in emotionally charged drama over abstract concepts and ruthless ignorance of anything specific.

This is one reason the political class flew into a panic when Trump came along in the 2016 election. For all his bombast, he was talking about real things in practical terms that actually matter to people. When he spoke of immigration, he talked about rapists crossing the border and illegal aliens killing citizens. Trade was about China ripping off the country and reducing wages in the process. Trump was a throwback to the old-style politicians and that terrorized the current politicians.

This is something else the paleos touched on, but never fully explored. The managerial state not only becomes self-serving as it matures, but it also becomes inward looking, a self-contained culture. Once it becomes class-aware, as we are seeing today, it becomes rapidly insular. The dual purposes are the moral signifiers inside the system and maintaining the barrier between those inside and those outside. These work in concert to further isolate the system from the general society.

This is why our politicians sound increasingly deranged. Not sounding like normal people is very important inside the system. Who they are is not us, so they are constantly looking for ways to signal that to one another. This is why they are now barricading themselves into a green zone in Washington. Most likely, this will begin to happen at the state level. Americans will be ruled by pod people living and operating inside special zones guarded by razor wire and armed men.

The last phase of anarcho-tyranny may turn out to look something like colonial occupation, where the people in charge live in fortified towns. They use their control of the system to maintain the illusion of power, but in reality, it is all just a very expensive drama that has no practical impact, beyond the cost. The practical aspects of life are handled by corporations and ad hoc associations. Managerialism brings us full circle to a firm of feudalism with material excess.


A new year brings new changes. The same is true for this site as we adjust to the reality of managerial authoritarianism. That means embracing crypto for when the inevitable happens and the traditional outlets are closed. Now more than ever it is important to support the voices that support you. Five bucks a month is not a lot to ask. If you prefer other ways of donating, look at the donate page. Thank you.


Promotions: We have a new addition to the list. Havamal Soap Works is the maker of natural, handmade soap and bath products. If you are looking to reduce the volume of man-made chemicals in your life, all-natural personal products are a good start. If you use this link you get 15% off of your purchase.

The good folks at Alaska Chaga are offering a ten percent discount to readers of this site. You just click on the this link and they take care of the rest. About a year ago they sent me some of their stuff. Up until that point, I had never heard of chaga, but I gave a try and it is very good. It is a tea, but it has a mild flavor. It’s autumn here in Lagos, so it is my daily beverage now.

Minter & Richter Designs makes high-quality, hand-made by one guy in Boston, titanium wedding rings for men and women and they are now offering readers a fifteen percent discount on purchases if you use this link.   If you are headed to Boston, they are also offering my readers 20% off their 5-star rated Airbnb.  Just email them directly to book at sa***@*********************ns.com.


 

The Bad Faith Society

Note: The weekly Taki post is up here. It somewhat ties into the post below. Behind the green door is a new post on the 1960 classic, The Apartment. This was my first viewing, so I was surprised to like it, even thought I did not get any of the jokes.


When two parties attempt to negotiate a deal, the starting assumption is both sides actually want a deal. That is not always the case, but if one side thinks the other side is not coming to the table in good faith, they are wise to break off negotiations. For starters, they are wasting their time, since there is no deal to be had. Second, a party that starts a negotiation with a lie is going to keep lying. If you cannot trust anything they are saying, or their intentions, you cannot reason with them.

A simple example of this is car buying. When a person walks onto the lot, the salesman is trained to look for the signs that the person is just a tire kicker. He may profile him based on his appearance. A young guy looking at expensive sedans is probably not a serious buyer, for example. He will ask questions to determine if the person is serious about buying a car and willing to entertain an offer. The point is, he is determining if the other side is open to reason and ready to bargain in good faith.

This is the heart of any negotiation. Both sides have to start with the belief that the other side is amenable to reason and is bargaining in good faith. They may have different goals and very different ways of negotiating, but both sides have to be open to reason and come to the table in good faith. In other words, both sides want to find a deal that satisfies both sides. Otherwise, both sides are just wasting their time and perhaps harming their own interests in the process.

This is also the basis for popular government, which is nothing more than a long public negotiation. The various interests in a society have their goals regarding the issues they see as important and they work the process that is setup for hashing out the particulars and promoting their case. The public is both the referee and a counterparty. They make their voice heard throughout the process. The politicians are the hired negotiators, tasked with hashing out a compromise that satisfies the majority.

Like the simple deal between two parties, the democratic process relies on all sides being reasonable and operating in good faith. Sure, there are always bad actors trying to fool the public or game the process. The system, through elections, debates, public hearings, and investigations, is supposed to flush out the bad actors or at least correct what they have done after it is discovered. It may not be pretty, but the point is for reasonable people acting in good faith to reach a compromise.

What happens when the parties are not open to reason and they are not operating in good faith when they bargain? In a business negotiation, this often results in one side or the other breaking of negotiations. One side sees that the other is lying or up to shenanigans, so they stop wasting their time. This happens a lot, so firms train their people to look for the signs, so they do not waste their time. The most valuable commodity is time so you cannot waste it on bad deals.

In a democratic system of government, there are supposed to be rules to punish those who do not argue in good faith. Politicians who take bribes, for example, are removed from office and sent to prison. Interests that misrepresent themselves or defraud the public see their interests destroyed as a way to discourage the practice. There are laws that allow the media and the public to examine the claims of the various parties in order to root out corruption and deception. That is the theory, leastways.

That is clearly not where America is right now. Liberal democracy has evolved into one giant game of liar’s poker. Much like the financial markets, the big players in the system no longer have respect for the spirit of the rules. They never come to any deal in good faith and they are never open to reason. They want to “win” the deal by getting all of what they want at the expense of the other parties. In modern liberal democracy, no one is acting in good faith and no one is open to reason.

It is not just the big interests gaming the system. The system itself has been gamed to the point where only a sucker operates in good faith. The politicians, instead of operating as brokers and negotiators, are middlemen facilitating the looting of the system by the big players. Public debate is now a game of shadows, because the mass media lies about everything and is always pushing an agenda on behalf of the big players or their politicians working on their behalf.

Of course, the old adage about always knowing who the sucker in the room is when in a room full of sharps applies here. In the great hall that is where negotiations happen in a liberal democracy, the monied interests, the politicians, the media, and the shadowy players of the permanent ruling class put on a negotiating show. The public, until very recent, was never sure who was being conned by the grifters. As the saying goes, they were always the sucker in the system.

This is the heart of the current crisis. The reason the financial markets keep needing bailouts is because everyone inside that system is a liar. No one comes to a deal in good faith and no one is willing to reason with the other side. Everyone is trying to take advantage of everyone else. In a system of zero social trust, entropy is inevitable, which in human systems means collapse. This is why the financial markets careen from crisis to crisis, needing bailouts from the public.

Liberal democracy is mirroring the financial markets. This makes perfect sense, as the entire culture has been financialized. Republican virtue was removed from the official system long ago. What remained of it with the general public went away with the events of the last few years. America now finds itself in a world where no one acts in good faith and no one is open to reason. We have reached the point where we need a bailout, but there is no bailout for a liberal democracy that fails.


A new year brings new changes. The same is true for this site as we adjust to the reality of managerial authoritarianism. That means embracing crypto for when the inevitable happens and the traditional outlets are closed. Now more than ever it is important to support the voices that support you. Five bucks a month is not a lot to ask. If you prefer other ways of donating, look at the donate page. Thank you.


Promotions: We have a new addition to the list. Havamal Soap Works is the maker of natural, handmade soap and bath products. If you are looking to reduce the volume of man-made chemicals in your life, all-natural personal products are a good start. If you use this link you get 15% off of your purchase.

The good folks at Alaska Chaga are offering a ten percent discount to readers of this site. You just click on the this link and they take care of the rest. About a year ago they sent me some of their stuff. Up until that point, I had never heard of chaga, but I gave a try and it is very good. It is a tea, but it has a mild flavor. It’s autumn here in Lagos, so it is my daily beverage now.

Minter & Richter Designs makes high-quality, hand-made by one guy in Boston, titanium wedding rings for men and women and they are now offering readers a fifteen percent discount on purchases if you use this link.   If you are headed to Boston, they are also offering my readers 20% off their 5-star rated Airbnb.  Just email them directly to book at sa***@*********************ns.com.


 

The Decoupling

Once you have been on this side of the great divide for a while, you end up in another place that is not obvious when you first make the journey. That is, you look on at conventional politics with a bemused detachment. Since it is obvious to you that it is all theater, you wonder why some of them put so much effort into the performance. Why does Elizabeth Warren, for example, feel the need to carry on like the champion of the little guy over GameStop? What is the point of this charade?

It could be that her script writers and directors have told her there are tribes on the Left that need to see this show. Maybe they think the Bernie Bros are starting to wise up about what is happening and need a booster shot. It is not as if she is going to follow through and do anything about the shenanigans. Even if she wanted to, she lacks the authority and she has no influence over those who do have authority. The SEC and FBI laugh when they hear a politician demand anything from them.

We live in a country where the FBI can manufacture evidence in an effort to overturn a presidential election and nothing happens. Thus far, one guy was charged with faking evidence to a FISA court. He confessed, as he was caught red-handed, but he received less than what drunk drivers get these days. He is a hero to the Bureau, because he took his pinch like a man. He kept his mouth shut and he learned the two greatest things in life. Never rat on your friends and always keep your mouth shut.

In the case of GameStop and the shenanigans surrounding it, the players are not punks doing small crimes like that FBI stiff. These are shot callers who bankroll the political system and control the economy. They already own dingbats like Warren and Ocasio-Cortez, so they have no fear of them. They probably have them on mute as no sober man would want to listen to those two for more than five minutes. Their prattling on about this issue is pointless.

This is the reality that has been brought home over the last decade. The election of Trump was that last desperate attempt by normal people to shake some sense into the managerial class, so they would start enforcing the rules again. Even people on this side of the great divide held out hope that this would be a wake-up call and the Overton window would slide this way, allowing for discussion of the root causes of the current crisis in the American Empire. None of that happened.

All you have to do is look back at posts here from a few years ago. Look at the comments and you see familiar names holding out hope that the investigations into the FBI would become a catalyst to reform. Even the most jaded on this side of the great divide had some hope. Not puppy dogs and rainbow hope, but the sort that thinks the people in charge will sense their interests are at stake and they will adjust out of self-preservation or maybe as a way to gain some advantage.

This is one of those changes for which we have no precedent. All of a sudden, we have a significant number of people who look at convectional politics as a joke. Instead of being angry and banging away on social media or sending off an e-mail to the nearest Republican, millions are just detaching from it. Outrage theater can only work if people are engaged in the system. We are in the midst of a great decoupling, where millions detach from the system and attach to independent systems.

In the past, the political culture provided for both satisfaction and dissatisfaction with the current policies. Those who were happy would get to see people inside the system being happy, so they could mimic them in their happiness, getting the same dopamine hit as if they were actually benefitting from the policy. Similarly, unhappy people could find a performer in the system being angry and outraged. They would mimic that behavior to get the satisfaction of feeling wronged.

Those of us fully decoupled from the system no longer get those neurological responses from the performers in the system. Their outrage and gloating strike us as ridiculous and bit absurd. A goofy old dingbat like Elizabeth Warren barely has comedic value. Watching her is like watching a 1970’s comic in a denim suit telling Nixon jokes. Similarly, Ocasio-Cortez is just a reminder of why you are glad you are no longer on Twitter. Millennial dingbats are a dime-a-dozen.

What we are seeing is a great decoupling. The shuttering of the social media sites to tens of millions of people breaks the connection. Many have ended up on Gab, connecting to a different social dynamic. Others are heading to other places like Telegram, connecting to boutique communities. Some will no doubt re-attach to Conservative Inc., but there is not much there to offer the person looking for a way to express their unhappiness.

The political system that has evolved to this point has counted on greater and greater engagement at increasing levels of emotion. What happens when those dials start moving the other way is unknown and unconsidered. When tens of millions shrug and laugh at the pleas from Conservative Inc. or mock the phony rage heads from the chat shows, how does the system respond? Turn up the volume? Send their crazies back out to poke people with sticks like they did last summer?


A new year brings new changes. The same is true for this site as we adjust to the reality of managerial authoritarianism. That means embracing crypto for when the inevitable happens and the traditional outlets are closed. Now more than ever it is important to support the voices that support you. Five bucks a month is not a lot to ask. If you prefer other ways of donating, look at the donate page. Thank you.


Promotions: We have a new addition to the list. Havamal Soap Works is the maker of natural, handmade soap and bath products. If you are looking to reduce the volume of man-made chemicals in your life, all-natural personal products are a good start. If you use this link you get 15% off of your purchase.

The good folks at Alaska Chaga are offering a ten percent discount to readers of this site. You just click on the this link and they take care of the rest. About a year ago they sent me some of their stuff. Up until that point, I had never heard of chaga, but I gave a try and it is very good. It is a tea, but it has a mild flavor. It’s autumn here in Lagos, so it is my daily beverage now.

Minter & Richter Designs makes high-quality, hand-made by one guy in Boston, titanium wedding rings for men and women and they are now offering readers a fifteen percent discount on purchases if you use this link.   If you are headed to Boston, they are also offering my readers 20% off their 5-star rated Airbnb.  Just email them directly to book at sa***@*********************ns.com.


 

GameStop

Until a few days ago, most people had no reason to think about GameStop, a retail chain that sells video games and accessories. If you have kids, you probably know the place, because your kids like to go there. Otherwise, the only reason to think about the place was to wonder how they managed to survive as a brick-and-mortar operation in a world dominated by on-line retailers. They exist as a reminder that humans still prefer in-person shopping, even if it comes at a premium.

That is the funny thing about the GameStop story. While other traditional retailers struggled to maintain margins, they are an exception. This is a company with ridiculously high margins. Even with a drop in sales due to the great reset launched by the managerial class this year, they maintained their margins. Whatever they are doing in their shops, people think it is worth a premium. Despite this, their stock was a dog, falling below $4 until the recent explosion.

It is the explosion in their share price that has them in the news. The share price as of the close of business yesterday was $347.51. The pre-market ask is $489.00 as these words are being typed. That number keeps going up, so it is not unreasonable to think that shares will be trading at or above $500 today. Everyone now wants a piece of the winningest stock since the dot-com bubble. If you had this company in your portfolio six months ago, you are a very happy investor.

Of course, this explosion in share price did not happen because everyone suddenly realized this was a great company. The story here is retail investors organizing on Reddit noticed that some big hedge funds were shorting the hell out of the stock, despite its depressed price. Shorting a stock is when you borrow shares of the stock and then sell them, hoping to buy them back at a lower price. You then return them to the lender, and you collect the difference.

These hedge funds took this a step further and borrowed shares that did not actually exist, which is called naked short selling. Basically, the center of the naked short sell is a promise to sell the shares at a price on a certain date. If the seller is unable to borrow those shares, then they must go into the market and buy them. If the price is below the promised price, no problem. If not or if the shares are simply not available to be purchased, then it is a very big problem.

This is where we are in the story of GameStop. At least one hedge fund was committed to delivering shares of this company at a few bucks per share, but now the shares are many times higher and becoming something close to unobtanium. The result is the hedge fund, Melvin Capital, has been wiped out. They had to liquidate all of their other holdings to cover their short position. Even with help from other hedge funds, they will file for bankruptcy next week.

By itself, this is an amusing story, but hardly big news. But, no one really knows if this is an isolated situation. The insiders were targeting a number of companies, hoping to jawbone down their share prices while they aggressively shorted those stocks. It is not unrealistic to think there are dozens of hedge funds out there working this grift, so this could be the tip of a much larger iceberg. The movie chain AMC Entertainment is seeing its stock follow GameStop for the same reasons.

Now, this may not sound very interesting, but even in today’s world of magical finance, math still matters. If you have to raise cash to cover your bad bet on a naked short sell, it means selling something to raise the cash. Hedge funds tend not to sell their furniture or expensive sports cars, so they sell their good holdings. Usually, they sell their best holdings, as they are the most liquid. If enough hedge funds are forced to liquidate their good holdings, those holdings will decline in price.

This is the great fear in these situations. No one knows how much exposure there is to this bad trade. That is why the general market will decline, as the robots that do almost all of the trading move into the safest of safe harbors. This, in turn, can result in selling of otherwise solid assets, simply because no one wants to be holding an asset in decline, especially in a declining market. Given the ridiculously inflated share values, this short squeeze could signal a very big correction.

It could also be a big nothing or it could mean the government comes in and makes everything right with bailouts or new rules to prevent further erosion. That really is the story here with GameStop. This revolt of small retail investors against this hedge fund is about the larger issue. The marketplace has been perverted by insiders with special access to both market makers and market regulators. The financial markets are no longer tethered to economic reality. It is just a giant bust out.

This is why this event is being compared to Gamergate. Like the populist revolts we have seen all over the culture the last ten years, this organized attack by small investors is about a larger issue. The institutions we are supposed to rely upon to regulate our lives have been corrupted by managerial insiders. Just as the marketplace of ideas is now manipulated by thugs and lunatics on behalf of the oligarchs, the financial markets have become a grift operated by wealthy insiders.

What this means, of course, is that the insiders getting hurt in this will go to their colleagues in the ruling class and have the insurgents crushed. These people will be pushed off public forums, have their accounts closed by the trading companies and some will probably be arrested on made up charges. In a society where mocking the rulers on Twitter could get you ten years in prison, anything is possible. The ruling class will not be mocked or defied.

On the other hand, it is great example of how to resist managerial tyrants. These people will not be talked out of their corruption. They have no scruples, so they cannot be shamed into doing the right thing. They have real power, so they cannot be removed from their positions. The only course is to drive up the cost for them. Throwing sand in the gears whenever possible drives up the cost of rule. Eventually, the managerial state becomes the naked short sell and has to be liquidated.


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