The Houtis, a Shia Islamic group, have been attacking ships in the Red Sea, hitting European ships, mostly carrying goods going between China and Europe. They use ballistic missiles plus cheap drones with great effect, targeted by an Iranian spotter ship in the Red Sea narrows, the Bab el Mandab. The US response is “Prosperity Guardian.” We’ve sent four missile destroyers. and the British one. These are arrayed along the entire coastline, too much coast for 5 ships to protect, and we try to shoot down drones and missiles. We manage to shoot down most of the missiles and and drones, but some always get through, and they mostly hit US and British targets. Recently the Maersk Detroit, a US flagged ship and 3 days ago, the British tanker, Marlin Luanda, shown below. It was carrying Russian naphtha headed for China. Some months ago, The Houtis kidnapped a British ship (Jewish owned) and took it to Yemen, as described previously.
British oil tanker, Marlin Luanda, on fire in the Gulf of Aden after being hit by an Iranian missile fired by Yemen’s Houthis. The tanker is hauling Russian naphtha, headed for China.
Iran supplies the missiles, and helps choose targets. According to Kissinger the aim of their attacks, and of the attacks on Israel, is to delegitimize Sunni Moslem countries like Egypt and Turkey that have made peace with Israel and the west. Whatever the motivation, Chinese and Russian ships are not targeted, but our ships are. We don’t attack the Iranian spotter for fear of starting a war. Instead we bomb Yemen, and protect ships carrying Chinese good and Russian oil. Currently 80% of the oil tanker transits of the Suez carry Russian oil (see below).
Most of the oil trade in the Suez is Russian — yellow line. Everyone else is shown in blue-black. It’s down to 0.5 ships per day, on average.
I don’t mind helping European countries get cheap Chinese goods, but I think the the main folks to pay should be the Europeans. We’re firing expensive anti-missiles and we’re showing the strengths and vulnerabilities to the Iranians, Chinese and Russians. Currently it’s our sailors who are at risk. The US trades with China too, but our China trade is not benefitted by ‘Prosperity guardian. Mostly our China trade avoids the Suez Canal, and comes around Africa to Savana or NY, or it comes across the Pacific, directly to Los Angeles. Our India trade most goes the same way. Some used to go through the Suez before the Houtis started attacking.
France and Japan have not joined prosperity guardian. Instead they have chosen to convoy their own flagged ships, even allowing the occasional stringer to tag along. Doing this, they use fewer ships, and it seems to work better than our approach. The picture at left shows a French courvair-escort escorting two French container ships. Note how much bigger the container ships are than the French warship. Should the Houtis’s missiles get too close to a French ship, I suspect that the French would retaliate hard. I think we should switch to following the French model and convoy-protect our shipping, plus whoever wants to tag along.
Map of Yemen and the Red Sea narrows.
Shipping, insurance rates have risen to about 1% of the cargo value. It’s now so expensive that no US cargo carrier will transit the area except when needed to supply our troops. At this point it’s worth asking, “Whose property are we guarding?” Also, is this really worth the lives of US sailors? If it is, why not hit the source of the problem — The Iranian spotter. The behavior of the French and Japanese makes sense to me. Biden’s behavior here does not.
Robert Buxbaum, February 6, 2024. Iran also funds and arms Hezbollah, a group that killed 3 US soldiers two months ago, and who killed several Kurdish allied troops in Syria just yesterday, and have shelled Israel intensely for months. IMHO, you want a few, well defended bases, not in harms way in Syria, but close enough to come back fast, in force.
I predicted dire times for China six years ago, when Xi Jinping amended the constitution to make himself leader for life, in charge of the government, the party, the military, and the banks. Emperor, I called him, here. It now seems the collapse has begun, or at least stagnation. Chinese history is cyclic. Good times of peace and plenty give rise to a supreme emperor whose excesses bring war and famine, or at least stagnation. The cycle repeats every 50 to 100 years. Since Nixon opened China in 1973, the country has seen 50 years of prosperity and spectacular growth, but the growth has stopped and may be in decline. The stock market (Shanghai Shenzen 300) peaked in 2021 and has declined 50% from there. It’s down 30% for the last 12 months to levels seen in December 2010. US growth seemed slower than China’s but it’s been more steady. The main US stock market, the S+P 500, has more than tripled since 2010, up 24.5% this year.
Five years of the Shanghai 300 index with hardly any change. There has hardly been change in 15 years. One could argue that the lost decade is here and on-going. .
Each year Chairman Xi’s behaves more dictatorial. Last year he arrested his predecessor, Hu Jintao in front of the Communist party. He now tracks all his citizens actions by way of face recognition and phone software, and gives demerits for wrong thinking and wrong behaviors. You lose merits by buying western cars or visiting western internet sites. Taking money abroad is generally illegal. Needless to say, such behavior causes people to want to take money abroad, just in case. Last week, Xi proposed a limit on video game playing and clamped down on banks, demanding low interest rates. This is bad for the gaming corporations and teenagers, and banks, but so far there are no protests as there is no war.
Kissinger said that war was likely, though. Xi is building the navy at a fast pace, adding fast surface ships, nuclear submarines, aircraft carriers, and new attack airplanes. They’ve added hypersonic missiles too, and added listening stations and bases. There’s now a naval base in Djibouti, at the entrance to the Red Sea, where they oversee (or promote?) Iran’s attacks on Western shipping. Then there are the new Chinese Islands that were built to take oil and fishing rights, and to provide yet more military bases on key trade routes. These could easily be a trigger for war, but so far just one military interaction in the region. Last month, the Chinese and Philippines navy clashed over fishing!
In the Gulf of Finland last Month, a Chinese ship, New New Polarbear, destroyed the offshore cables and gas pipes between Finland and Estonia, in protest of Finland’s entry into NATO. It’s belligerent but not war. Undersea cables are not covered by the UN charter, law of the sea. Then there is the evidence that COVID-19 was the result of Chinese bioweapon development, and the Chinese spy ballon that was sent over the US. We maintain at peace, but an unsettled sort of peace — is it a preface to war? Wars don’t have to be big war against the west or Taiwan, more likely is Vietnam, IMHO.
China’s negative population growth means that property values will drop along with product consumption. Kids buy stuff; old folks don’t.
News from China is increasingly unreliable so it’s hard to tell what’s going on. There were claims of a coupe, but perhaps it was fake news. Reporters and spies have been arrested or shot so there is no window on anyone who knows. There are claims of high unemployment, and COVID deaths, and claims of a movement to “lie flat” and stop working. Perhaps that was behind the ban on excessive gaming. Who knows? Xi claims that China is self sufficient in food production, but record food shipments from the US to China suggest otherwise.
Major businesspeople have disappeared, often to reappear as changed men or women. Most recently, Jimmy Lai, the Hong Kong clothing magnate, was indicted for sedition by tweets. Perhaps he just wanted to fire workers, or pay down debt, or move abroad (his daughter is). Many businesses exist just to make jobs, it seems. Not all of these businesses are efficient, or profitable. Some exist to violate US patents or steal technology, particularly military technology. I suspect that China’s hot new car company, BYD, is a money-losing, job factory, behind Tesla in every open market. Some 91 public firms have delisted over the last two years, effectively vanishing from oversight. Are they gone, or still operating as employment zombies. Will BYD join them? If China manages to avoid war, I have to expect stagnation, a “lost decade” or two, as in Japan saw from 1990 to 2010, as they unwound their unprofitable businesses.
A sign suggesting that a Chinese lost decade has begun is that China’s is seeing deflation, a negative inflation rate of -0.2%/year according to the world bank. It seems people want to hold money, and don’t want Chinese products, services, or investment. Japan saw this and tried a mix of regulation and negative interest rates to revive the interest, basically paying people to borrow in hopes they spend.
In Japan, the main cause of their deflation seems to have been an excess of borrowing against overvalued and unoccupied real estate. The borrowed money was used to support unprofitable businesses to buy more real estate. This seems to be happening in China too. As in Japan, China originally needed new lots of new apartments when they opened up and people started moving to the cities. The first apartments increased in value greatly so people built more. But now they have about 100% oversupply: one unoccupied or half-built apartment for every one occupied, with many mortgaged to the hilt against other overvalued apartments and flailing businesses.
Chinese Dept, personal and corporate match Japan’s at the start of the lost decade(s). Personal debt is at 150% of GDP, corporate debt is at65% of GDP, all propped up by real estate.
As in Japan 30 years ago, China’s corporate + personal debt is now about two times their GDP. Japan tried to stop the deflation and collapse by increased lending, and wasteful infrastructure projects. People in the know sent the borrowed money abroad confident that they would repay less when they repaid. We are already seeing this; low interest loans, money flowing abroad and a profusion of fast trains, unused roads, and unused bridges. I suspect most fast trains don’t pay off, as planes are faster and cheaper. These investments are just postponing the collapse. China is also seeing a birth dearth, 1.1 children per woman. This means that within a generation there will be half as many new workers and families to use the trains, or occupy the apartments. As the country ages, retirees will need more services with fewer people to provide them. China’s culture promotes abortion. China’s working population will decline for the next 30 years at least.
Japan came through all this without war, somewhat poorer, but unified and modern. It helped that Japan was a democracy, unified in culture, with an open press and good leaders (Abe). There was no collapse, as such, but 20 years of stagnation. China is a dictatorship, with a disunited culture, and a closed press. I think it will get through this, but it will have a much rougher time.
Piracy is illegal throughout the world, but has become increasingly popular. Over the last 3 weeks, perhaps 15 ships have been attacked by pirates (or privateers) in the narrow entrance to the Red Sea between Yemen, Somalia, and Djibouti, the “Bab el Mandab,” In Arabic, this means “the gate of tears”. Most of the ships attacked are large commercial vessels operating between Europe and Asia. The US destroyer, Carney has been attacked as well. Three of the attacked ships have been boarded, and two have been successfully hijacked, the car-carrier Galaxy Leader was taken to South Yemen, while the MV Ruen a Bulgarian owned dry bulk (grain) ship was brought to Somalia. The last of the hijacked ships, the Strinda, was recaptured by the US and Japanese navy. The other ships were attacked, at a distance, by Iranian ballistic missiles, cruise missiles, and drones, all fired from Yemen. All of these acts are defined as piracy under the UN Charter, Law of the Sea, UNCLOS. The punishment is 10+ years in prison, assuming you catch the pirate.
Bab al Mandab = Gate of tears, where the pirates operate.
All of these ships are European except for the Carney and a Chinese container ship flagged in, Hong Kong. You’d think that the European navies would protect their own ships here, but they do not. Neither did the Chinese navy, though they are stationed in Djibouti. It’s clear that Iran is organizing the attacks, and that they are using a spotter ship to help direct the missiles. My guess is that the European countries don’t want to annoy Iran here, nor do they like to use their $1 million missiles.
In theory, these attacks are in response to the Israel – Gaza war. The hijacked Galaxy Leader was registered in the UK, but owned by an Israeli Jew (see a video of the attack). Another ship that was attacked, the Strinda, was not directly associated with Israel, but was going to go to Israel at some point in the future. While it’s possible that the other attacked ships had Jewish or Israel connection, a simpler explanation is that this is economic terror. Israel-based Zim shipping has elected to avoid the straight and redirect around Africa instead, a much longer route that is sure to damage the shipper and Israel’s economy. I suppose that was an intent, but the damage is spreading.
Commercial vessel attacks in Bab al Mandab, chart from “What the Ship” video blog.
The European shippers have demanded that the US protect their ships, and perhaps Biden will agree. My sense is that Trump would have said no, or at least demand something in return. Personally, I see no reason to defend trade that doesn’t involve us, with no obvious payback. Yesterday, British Petroleum BP announced that it would avoid the Bab. Four major European container freight firms, MSC (Swiss), Maersk (Danish), Hapag-Lloyd (German) and CMA CGM (Italian, French). Currently Maersk supplies our troops, but has threatened to stop unless we defend their whole fleet. I consider this an offensive, a breech of contract. They European press seems to think it’s clever. We used to have a US company that supplied our troops, Landsea intermodal, but Maersk bought them out. Personally, I think it’s time to look for a company that doesn’t play these games.
As of two days ago, the economic damage has been minimal, except to Israel. Only 55 ships had diverted around Africa, or begun to. This is a small fraction of the 2,128 ships that have gone through the Bab since November 15. In the last day or so, European oil prices have started to rise, while ours fell. The thought is that Saudi oil will now flow to the US, not Europe. I think this is the beginning of a serious problem for Europe and that they should defend their own shipping. A few, million dollar missiles are a lot cheaper than the billions of loss to their economies that rerouting will cause. At present, Europe expects us to save them while they do little or nothing. I think we should say no. They think Biden will cave.
Jean-Paul Sartre was a Catholic who did not believe in God or external morality, but believed in socialism and being true to ones self without having to do anything for anyone. His most famous work, “Being and Nothingness” was written in France in 1943, during the Nazi occupation. The last 200 pages of the book deal with freedom and its limitations. Sartre points out that there are always limitations (prison guards, Nazis, your own body, etc.) It is dangerous and impractical to oppose these guards, or or to oppose your own body. Sartre’s advice is to go along in body, but oppose them in your mind. Thus, he believed, he was being true to himself to the extent of rational choice. He was totally free because he was free in his mind and in his reactions to the limitations. “Freedom is what we do with what is done to us.” This was his version of existentialism, and many Frenchmen agreed that this was the right way to behave under the circumstances. Many Nazis agreed and enjoyed his writing and plays. If they didn’t totally like what Sartre had to say, they didn’t object enough to send him to a concentration camp. In practical terms, he thus survived better than Jews and oppositional Frenchmen.
Sartre had eyes that pointed in different directions. Some try to claim this related to his philosophy
Although there is a stink of cowardice and collaboration hanging over Sartre and his outlook, it could be worse. A Sartre Joke: Sartre had just finished talk at a restaurant, and sat down. A waitress who understood the talk better than most, asked if she could get him something. Sartre said, “please bring me a coffee, no sugar, no milk.” The waitress came back and said, “we’re out of milk. I can get you coffee with no sugar and no cream.” The point of the joke being that Sartre’s freedom of choice can only be among the choices he could reasonably make. If he’d asked for milk, it’s irrational to expect that the restauranteur would run out and buy some, so it was pointless to ask for no milk.
As the Germans were leaving, Sartre took French antisemites to task in a short book, “Antisemite and Jew” (1944) where he discusses the inauthentic logic of French antisemites and the motivations behind their behavior and beliefs. He claimed the motivation was a sort of mob empowerment where the antisemite, by oppressing Jews sees himself as noble, and comes to feel himself as the heir of all France, its history and its culture. They the thus imagine themselves empowered and enriched by their hatred of he-who-isn’t-them. This motivation he inferred in the liberal Frenchman as much as in the thug; the liberal objects to the yellow star, not out of sympathy for the Jew or justice, but for an inauthentic reason. It makes him feel small by his inaction, and it crates, in the Jew, an identity that is beyond the essence they prefer; he’s more than just ‘not-them’. As I read him, the main character in “Catcher in the Rye”, Holden Caulfield, is a Sartre stand in, a privileged kid bothered by the “phoniness” around him, Like Sartre, he complains and does nothing for anyone, but he does no harm either.
Sartre didn’t join the resistance, even after the Germans were losing, nor did he hide Jews or gentles, or help anyone but himself. After the war, he pushed for the execution of those who were insufficiently anti Nazi, like Tintin author, Hergé. Hergé survived, many of those he attacked were killed in post war purges. Sartre’s philosophy actually works for prisoners in extreme circumstances. Similar philosophies were created by Victor Frankl and Primo Levi during their stays in Auschwitz. It helped them survive and stay sane. Frankl’s “Man’s search for meaning”, was alternately titled, “From concentration camp to existentialism,” a lot concerns the importance of keeping your mind clear – of not becoming an animal.
Simone de Beauvoir & Jean-Paul Sartre with Che Guevara, a favorite Communist murderer, in Havana, Cuba, 1960 (photo by Alberto Korda).
After the war, Frankl became a successful psychologist helping people by helping them to see that they had a reason to exist. This is a more positive version of Sartre’s existentialism, where there was no reason. Primo Levi seems to have followed Sartre’s line more and become ever more depressed; eventually he committed suicide. Eventually, Sartre found a reason to exist in socialism. He believed that, while life was a cruel joke, socialism was pure. People could die in the millions, and he acknowledged that, the leaders were brutal thugs who did murder millions, but he believed that socialism and communism must live on. He tried to keep the bad truths hidden. So what of the killing and torture. So what if writers were imprisoned or shot — in Russia all the Jewish ones were shot in the same day — Sartre said they should have written better books, more pro-communist. Sartre would never have willingly lived in communist Russia, China, or Cuba — he stayed safe in France, and championed the oppression.
Gays for Gaza are not interested in a queer state of Palestine; they attack Jews to make themselves feel generous and powerful — it gives their lives meaning.
This brings me to the pro-Palestinian authors of today, and of 1973. Fifty years ago on Yom Kippur, Iraq, Syria, and Egypt attacked Israel by surprise simultaneously with aid from Russia. Communists and socialists supported the Arabs. Among them was Sartre, though he knew these states to be brutal dictatorships. Pretty soon Sartre discovered that his friends motivation was that they liked attacking Jews, a phony motivation, said Sartre in an interview, and he found he could not join them
I detect the same phony motivation in today’s demonstrations. The loud feminists for Palestine, the Gays for Gaza, those attacking Jews for complicity. Very few of them would willingly live in these countries or among Hamas or ISIS, and fewer of those would survive. Their love of Palestine is an excuse to hit Jews. The better version is Sartre’s he did nothing then, and would likely have done nothing today. You have to have authentic thoughts, at least.
Donald Trump has a lot of signature behaviors, including his “America first” politics, his hair, his ‘tan,’ his way of speech, and his way of wearing suits. Half of America finds them attractive or at least OK, while the other half finds them super-unattractive. Trump seems to have a super-power, that there is no middle. Those who dislike him dislike everything about him to his policies to his clothes. Let Trump propose immigration control, and the opposition demands open borders. Let Trump propose tariffs, an ole Republican approach to diplomacy that is thought to bring in Jobs, and the opposition (even unions!) goes crazy for free trade.
Trump likes dark colors, long ties, long jackets, and long sleeves on his suits.
In the book “Fear”, by Bob Woodward’s first story is about folks on Whitehouse staff stealing Trump’s first tariff proposal from his desk in an effort to prevent it being signed. Whatever they thought of the tariff (it was not that weird, and didn’t do much) the fact that they stole it showed the dramatic reaction people have. In this case, folks who otherwise understood that they are there to serve the president, not to overturn his policies.
LeBron James in the Thom Browne, Anti Trump look. The pants are too short, as are the sleeves and jacket. Note the dull grey color and the short, dull-grey tie. The fellow behind him is dressed normal or Trumpish: dark clothes, long sleeves, bright, long tie.
In terms of fashion, the anti-Trump fever is to react against Trump’s choice of suits in dark colors, paired with bright ties that hang below the waist. The anti men’s fashion has moved to dull grey suits and short, grey ties. Trumps’s suits’s typically have extra-long long sleeves and long pant legs that hit the shoe-top. He likes long jackets too, that to me look vaguely like Lincoln’s. The fashion back-lash is men are wearing ridiculously short pants and jackets, with socks showing.
LeBron James, at right, is wearing a complete mens, anti-Trump look, likely a Thom Browne suit, a very expensive ill fit. This suit doesn’t look comfortable, but it’s fashion, and as I’ve said before, you’ve got to suffer for fashion.
There is also a woman’s version of anti Trump fashion. The Trump women wore feminine, closely fitting clothing and wore their hair long. The anti-Trump women’s look is the opposite; it includes short hair and masculine, often covered. This is paired with loose fitting male clothes: cargo pants or combat fatigues. Topping it off, ideally ideally is a checkered, keffiyeh scarf, either over the head or around the neck. The style of scarf was made popular by former PLO head, Yassar Arafat. This look is particularly popular on college campuses and at demonstrations. It implies that the wearer supports Palestine (Trump supported Israel), and shows you are part of the cool set. The wearer, herself, is typically is not in favor of kidnapping or rape or putting babies in oven, but they are so strongly anti Israel and Trump that they are OK with it, especially if it is Jews being kidnapped, rabed, or cooked alive. They will call for Jews to be gassed or tortured. It’s part of being in the in-crowd, and antisemitism is what’s in these days — it’s been popular for many centuries.
The women’s anti-Trump look includes short hair and a keffiyeh scarf. Photo from WRLN Florida.
It is a misconception to think that those wearing the keffiye don’t understand that they would not live long if they had to dwell among the Arabs they support. These feminists do understand, as do the ‘Queers for Palestine’. They’d never want to live in even the most moderate Arab country, the same way that those supporting Mao would never want to live in China under Mao. It is fashion, and like all fashion, it’s a mob behavior that exists only for fashion’s sake. In this case there is the added advantage that you get to hit Jews and break their windows — something that is particularly attractive for feminist women, I notice; the majority of people at the Palestine protests are women.
Russia is a collapsing, corrupt state with no meaningful elections. It is also the biggest exporter of food, fertilizer, gas, and oil. Nearly 2 years ago, it invaded Ukraine, another collapsing, corrupt, food-exporting state with suspended elections.
Both countries are in the midst of demographic collapse, with Ukraine worse off. Ukraine was invaded though, and thus has the better claim to our support. Then again Russia has atomic bombs. It’s also the largest exporter of wheat (or was), while Ukraine is only the 5th largest (or was before the war). The other three big exporters are the US, Canada, and France. They have benefitted financially, but don’t have near enough output to make up for lost Russian and Ukrainian production.
Ukraine’s grain terminals in flames, Odessa..
Food and energy prices have gone up, world wide, and will probably continue to rise as the war stretches on. This could lead to a global famine and mass starvation, particularly in the poorest areas of Africa, the Mid East, and India. Unfortunately, the war is popular and patriotic, in Europe, Russia, Ukraine, and the US. It’s good business for our armaments industry, and for our recent mega-farmers (like Bill Gates). Also, for our political and spy class. They spend with little government oversight, and just recently misplaced $16 billion. Surely some of that lost money snuck back to the CIA and our politicians’ pockets. We’d have oversight, but “there’s a war on.”
As wars go, the death toll is low, a total of 354,000 dead and injured on both sides, as revealed by recently leaked documents. This is a small fraction of the countries population. Russia has lost 223,000 soldiers killed or wounded, 0.2% of the population, while the Ukrainians had lost 131,000. That’s 0.3%, many of them civilians. The death rate in the two countries during this time was 3.1 million people, 1.8% of the total, mostly from heart disease, accidents, and alcoholism.
The Ukrainian population. Lots of retirees, few kids, very few of military age. This is a disaster, not a country.
Even more destructive to Russia and Ukraine is the demographic collapse. The fertility rate in Russia is 1.5 child per woman, up fro 1.2 in 2000. For a stable population at low infant death, you need about 2.1 children per woman. Russia has had this low rate for a generation, at least 30 years. The net result is that we can expect that Russia’s population will drop by a third or so over the next generation, about 50 million. In Ukraine the fertility rate is even lower, 1.21 per woman, up from 1.1. It’s been this way for 30 years, the equivalent of killing off 1/2 of the population. Aside from leaving the countries full of old people, with no one to do the work, the demographic collapse is producing a cultural shift that virtually guarantees the breakup of Ukraine and the Russian federation. Europe also has this problem, but they have immigration, and that helps a little. Russia has no immigration, and recently resorted to kidnapping Ukrainian children.
The loss of Russian and Ukrainian exports means famine for the poor importers and food inflation for all.
The coming food and energy shortage is likely to lead to mass migration, I expect. Europe has stopped taking delivery of Russian food and energy, in solidarity with Ukraine. Meanwhile Russia has been destroying Ukrainian fields and food infrastructure. Russia ruined a dam last month, flooding Ukraine’s fields, and yesterday destroyed the grain terminals at the port of Odessa,. This was tit-for-tat since Ukraine destroyed a key bridge, and Crimea’s irrigation canal. What’s more, evidence suggests that Ukraine blew up the Nord Stream pipeline — a key source of finance for Russia and Germany. This sort of tit-for-tat escalated to WWI, fueled by a belief, on both sides, that they would win “decisively and quickly.”
The result of WWI is that Germany was the biggest loser, losing men and land, and suffering a killing famine in 1916. It militarized to prevent it happening again, leading to WWII. Germany is the biggest loser of this war, I’d say, aside from Ukraine. I fear it will militarize. Russia invaded Ukraine but claims a need to militarize. Biden’s promise that Ukraine’s will join NATO is a threat to Russia, as is our delivery of F16s, missiles and cluster bombs. We are killing Russians, and Putin doesn’t like it. Add to this, that Ukraine’s claim for independence rests mostly on its Nazi collaboration. For the good of everyone, maybe we can stop adding gasoline to this fire.
Ukraine deserves our support, I think, but that support need not go beyond small-ish arms, energy deliveries, and tariffs on Russian goods. I think we should Ukraine and Russia export food and energy. Even without WWIII, a world famine and a military Germany does no one any good.
Robert Buxbaum, July 20, 2023. When I was a teen, it was a given that war was bad. Now, for some reason, the kids are in for war, especially the more liberal classes. I find this absolutely bizarre.
Among TV psychiatrists, the universal opinion of Trump, Putin, and Musk, that these individuals are narcissists, a psychological disease related to “toxic masculinity.” Musk, for his part claims the excuse of Asperger’s disease, high-functioning Autism. I half agree with the Narcissist diagnosis, and I’m confused by the Asperger’s claim because I don’t believe these folks are diseased. My sense is they have a leadership personality trait, common in all visionary leaders including Disney, Martin Luther King, and Genghis Khan. I’ve argued that it is important for a president to be a narcissist, and have explained Trump’s vision, “Make America great again” as independence.
Psychological narcissism, short for Narcissistic Personality Disorder, is a disease when it hurts the narcissists life. It is defined as a pattern of exaggerated feelings of self-importance, along with an excessive need for admiration. If it just annoys people it/s a disease, but it’s found among leaders, suggesting it’s not all bad. To get you to follow them, leaders present themselves as mini-messiahs, and try to get you to see them that way. They have a plan, a vision. If it’s successful, they’re visionaries. They fight to bring the vision into reality, which is very annoying to anyone who doesn’t see it or want it. But that’s leadership. Without it nothing big gets done.
Disney’s vision. Not everyone was pleased; quite a few considered him a tyrant.
For the narcissist to succeed, he or she must sell the vision, and his ability to get it done. The plan to get there is often vague and unattractive. These details are shared with only a few. You must see the leader there and yourself too, if you’re to fight for it. Disney was particularly visual, see photo. He got folks to buy into a building a magical kingdom with a private police force, where everyone is happy and cartoon characters glide among the paying visitors.
The majority of those who run into a narcissist reject both the vision and the narcissist. They fear any change, and fear that the success of the visionary will diminish them. For that reason, they run to no-bodies. But some see it, and follow, others throw stones. Disney got state officials to exempt him from state laws, and extend normal copyrights. Others smirked, and worked to stop him, but with less energy: it’s hard to be enthusiastic about no Disneyland. The conflict between doers and the smirkers is the subject of several Ayn Rand books, including The Fountainhead and Atlas Shrugged. She calls the opposing smirkers, “parasites”, “looters”, “moochers,” and my favorite: “do gooders.” It’s for the common good that the narcissist should fail, they claim.
Often these opponents have good reasons to oppose. The Ayatollah Khomeini had a vision similar to Disney: an Islamic Republic in Iran where everyone is happy being a devout Muslim of his stripe. The opponents feared, correctly, that everyone who was not happy would be flogged, hanged, or beheaded. I think it’s legitimate to not want to be forced to be devout. Similarly, with Genghis Khan, or Vladimir Putin. Putin compares himself to Peter the Great who expanded Russia and conquered Crimea. The opponents have legitimate fears of WWII and claim that Ukrainian independence is semi legit. Regarding Musk’s plans to colonize Mars, I note that Neil Armstrong and Gene Cernan have come out against it. There is no right or wrong here, but I have a soft spot for the visionaries, and a suspicion of the “smirkers” and “do gooders.”
Genghis Khan. He saw himself as a world changer. Some followed, some didn’t. Those who followed didn’t think he was crazy.
The smirkers and do-gooders include the most respectable people of today. They are thought leaders, who lose status if someone else exceeds them. They are surprised and offended by Martin Luther King’s dream, and Musk’s, Khomeini’s, Trump’s, and Lenin’s. Trump became president against formidable odds, and the smirkers said it was a fluke, he then lost, and they claimed it showed they were right. He may get a second term, though, and Musk may yet build a community on Mars. To the extent that the visionary succeeds, the smirkers claim it was easy; that they could have done the same, but faster and better. They then laud some fellow smirker, and point out aspects of the vision that failed. In any case, while the narcissist is definitely abnormal, it’s not a disease, IMHO. It’s what makes the world go round.
For 2000 years Chinese rulers have either fixed the problems caused by their predecessors, or become the absolute ruler who brings new problems and a war. Eighteen times over the last 2000 years, the absolute ruler has chosen is to invade Vietnam. Chairman Xi Jinping took full power over China five years ago, and as I predicted then, purged the party of all other competent leaders, including his predecessor, Hu. He now has to do something, and that’s typically a war. Xi talks like he’d like to invade Taiwan, but I believe he’ll invade Vietnam instead, as so many others did before him. Taiwan (Formosa) is separated from mainland China by 100 miles of open sea. There’s been only two successful, modern invasions; by the Qing Chinese in 1683 with the help of the Dutch fleet, and in 1895 by Japan against the 5 month old Republic of Taiwan. Vietnam is much easer to invade: you just have to walk in.
Chiang KaiShek with Roosevelt and Churchill. He took power after WWII.Taiwan is now a Republic
Here’s my brief summary of 60 years of cyclical Chinese history: In the last decade of his life, 1966-76, Mao Zedung brought a horrible cultural revolution, killing 100 million or so by violence and famine, targeting anyone who might disagree with him. He was followed by Hua Kuofeng, Hu Yaobang, and Zhao Ziyang. They removed “the Gang of Four” and brought reform, toleration, and some rapprochement with the west. Hu also returned some autonomy to Tibet. Deng Xiaoping followed, put Zhao under house arrest, removed Hua and Hu (only recently buried), absorbed Tibet, invaded Vietnam, instituted a brutal on-child policy with, forced abortions and sterilizations, and put down the Tiananmen uprising 1989 -an uprising caused by the removal of Hu. Deng was followed by Jiang Zemin and Hu Jintao who exited Vietnam, lightened the one-child policy, and brought back some measure of freedom. This lead to Xi Jinping who appears to be in the mold of Mao and Deng. He’s removed Hu publicly during a communist party meeting, has taken absolute control, arrested China’s business innovators, and (likely) caused a pandemic by unsafe research at the Wuhan bio-research facility. His response to the pandemic is worthy of Mao: he welded people into their homes. Xi now needs a war to unify the country, and talks like he’ll invade Taiwan. Xi might do it; he has increased military spending by 2.5 times, to double that of the EU (equal to US spending). His army is likely to be used somewhere soon. But where?
At first glance, it makes some sense to think he’ll invade Taiwan. He has the same justification as Deng had for Vietnam, “to punish the wayward province.” Taiwan is small, 23 million people, and very rich (GDP = $1.3T, 10-15% of China). It’s especially rich in high-tech areas that Xi seems to want, and China ruled the island (Formosa) for 212 years between 1683 and its brief independence in 1895. I expect that Xi will invade Vietnam though, for many of the same reasons that Deng did: it’s easier, and the invasion won’t destroy US trade. Vietnam will not be super easy to conquer, of course, Putin’s invasion of Ukraine looks like it will go on for years, but Xi has 100 million men of military age. Driving these men into Vietnam is a lot easier than an amphibious invasion. Vietnam now, as then, has few friends -perhaps only India -while Taiwan has many (The US and Japan, primarily), and they have naval breakwaters that would make an amphibious landing difficult. Vietnam is only about half as rich as Taiwan (GDP = $650 B), but it has two things China needs more than technology: oil and food.
The Japanese invasion of independent Taiwan, The Republic of Formosa, in 1895. It took 5 months despite lopsided advantages. Plus 7 years to pacify the population.
Japan’s invasion of the Republic of Formosa in 1895 would have to be the model for a Chinese invasion today, assuming that’s the route Xi would take. Japan used a small force of 20,000 highly trained men, and a surprise landing at two sites. The formosan army of 75,000 was hardly armed, but it still took the Japanese 5 months to defeat them. It took another 7 years to pacify the population. Taiwan today is a lot better prepared than it was, with modern missiles and drones, a well-trained army of 500,000, and an active navy. Japan, Philippines, and the US would likely try to resupply Taiwan, and would have to be blockaded to prevent delivery. This is not so easy, since the nearest Japanese island is closer to Taiwan than Taiwan is to mainland China, and the Philippines is not far either. Then there are the sanctions that would follow an invasion of Taiwan, but not an invasion of Vietnam: the freezing of assets and the closing of markets. Susch sanctions have been tough on Russia but they would be devastating to China since China imports most of its oil and half of its food, much of it by sea. Whatever Xi gets from invading Taiwan will not match these losses, and I think Xi know it.
China’s new military bases are located around Vietnam, not around Taiwan
I suspect that Xi has already concluded that Vietnam is the smart place to invade. Supporting this view is a look at his preparations. Xi has not built the landing fleet that he’d need for Taiwan, but has instead militarized Hainan Island, plus four other, newly constructed, illegal islands in the South China Sea. These islands surround Vietnam, and are well suited to cut off the country from western aid. They are too far south to be effective in an action against Taiwan. You can tell a lot about what a person will do from what he has done, and what Xi has done is to prepare for an invasion of Vietnam.
Early in the Ukraine War with Russia, Poland sent 200 T-72 battle tanks to Ukraine. Most other NATO members joined in, sending tanks, missiles, guns, supplies and technology. Germany sent nothing and have continued to avoid helping Ukraine as much as possible while the war dragged on for a year. Germany seems to have hoped for a quick Russian victory leading to a quick return to the pre-war, state of affairs. That’s not likely. Even early on, the war looked like a slow, long slog. Reluctantly, this month, Germany promised to send 18 Leopard tanks to Ukraine, requesting as replacements, mothballed tanks from Switzerland.
Germany is currently the 4th largest economy in the world, just behind Japan, and ahead of India (for now). They also have the 3rd oldest population. Their place as the leading economic and political power in Europe rests on a close relationship with Russia that is fading, bringing Russian goods west and manufacturing with them. Before the war, Germany imported most of its oil and 65% of its natural gas from Russia. Much of the gas came via two direct pipelines, Nord Stream, that bypassed the rest of Europe. Well into the war, while the rest of Europe disengaged, Germany is still buying from Russia and funneling it west: steel, aluminum, titanium, ammonia and platinum. Germany is still buying some Russian natural gas by way of Poland. The German economy is based on turning these materials into cars, high tech machines, and chemicals for export to the US, the EU, and China. Despite the very old population, Germany counts on cheap labor from low wage EU nations. These transient, long term. workers do not get citizenship or retirement benefits. The current war has presented Germany with more potential workers, Ukrainian refugees, but far fewer Russian supplies. The German economy is shrinking, and so far, the Ukrainian refugees have been mostly left unemployed.
Ex German Chancellor, Gerhard Schroeder, with Putin. He’s now head of Nordstream and Rosneft.
German industrial production is down by about 4% this year leaving its GPD at about $4T/year, about where it was in 2018. The US economy and the rest of Europe has grown. For an explanation, consider Germany’s ex-chancellor, Gerhard Schroeder, shown at left with Putin. Schroder remains a leader in the ruling SDP party, the party of Ms Merkel and of the current chancellor. He is also the chairman of the board for Nord Stream AG and of Rosneft, (Russian aerospace). He also sits on the board for Gasprom (Russia’s energy conglomerate), Rothschild, a prominent International bank, and is chairman of the board of the Hannover 96 football club. He is symbolic of Germany’s attachment to Putin and Russia. But the rest of the EU, along with the rest of the developed world, has come to hate Putin and Russia (they’re not too fond of Rothchild either). Europe is unlikely to tolerate Germany’s Russian imports, including titanium (65% of Airbus titanium comes from Russia) or natural gas. Germany has asked for a titanium exception (and been denied). What’s more, three of the four Nord Stream pipelines have been blown up (by whom?) leaving Germany to buy natural gas from its NATO allies: Norway, Britain, France Holland, and the US. Gas purchases are expensive for Germany while helping its NATO neighbors — Germany has asked to be subsidized for energy too (unlikely, imho). It has also restarted old coal-burning power plants, an insult to the EU given how hard Germany pushed them on climate change.
Germany is now near recession. Much of Europe is close, but Germany is worse-off since they are buying from the rest.
Percent of population over 65, CIA Factbook.
Much of the EU can sell gas and food to Germany, and Russia can export to China, India, and Iran. German inflation averaged 8.5% last year (9.2% in January). That is not hyperinflation, but a shock for a country that’s averaged 1% inflation over the last 25 years. US inflation, by comparison was 7.5% last year — due to excess spending by the Democrats (imho), the so- called “inflation reduction act,” but at least the US economy grew, along with the US population. It seems to me that, without Russian supplies, Germany will continue to slip versus the world and versus the EU.
Excess mortality for European countries has been very high for the last 6 months, especially in Germany. Death rates are up by 25% or so. Much of it is heart-related. Perhaps it’s COVID, or long COVID, or air pollution, or vaccines, or depression.
The German population is dying too. They too among the highest percent population over 65, see map. The death rate has spiked 25% over the last 6 months, too. Europe and much of the EU saw similar spikes earlier in the pandemic, partially from COVID, the rest is alcoholism, drugs, the vaccine, pollution, or a psycho-somatic response to isolation and the war. Sweden has largely avoided these problems so far.
Germany has been propping up its inefficient industries with low cost loans. The idea, presumably, is that things will go back to normal soon, and the companies will make good. So far, the war goes on, and the loans discourage competition and modernization. It becomes ever more likely that these inefficient German companies will default. If so, they could take down their lenders as happened in Japan in the 90s, and as happened to Lehman Bros. in the US. The same seems likely for China.
It becomes ever more likely that these inefficient German companies will default.
Even if the war ended tomorrow, it’s not clear that Germany could go back to its pre-war status. The blown Nord Stream pipelines will need a year or more to repair. And may never restart, as sanctions might remain long after the fighting ends, as with Cuba or North Korea. Russia seems to have recognized this possibility, and has begun sending titanium, gas, and oil elsewhere, mostly to Iran, India, and China. Iran has become a major customer of Russian aluminum, and food, and is a major supplier of drones and consumer goods to Russia. In the last two years, the Iranian GDP has doubled to about $2T/year. It is now nearly half the size of Germany’s GDP and growing while Germany shrinks.
Russia’s trade with India and China has grown too. They are working to improve the Trans-Iranian railroad that would allow easy shipments from Russia to India and China via the port of Tehran. The first direct shipment of this sort was completed in July 2022– Caspian Sea containers to an Iranian train to ship to India and China. If the war goes on, Iran, India, and China will benefit at the expense of Germany, it seems. India, in particular. India’s economy is already approaching the size of Germany’s, and will probably pass it with the help of Russia’s energy and raw materials. Meanwhile, Germany is left with an aging population and aging industries; with few suppliers, and no obvious competitive advantages. Europe is almost as badly positioned, but they can still sell to Germany. As for Ukraine, it seems to be doing well, despite the war — or because of it. They still grow and export food and energy, and they are holding their own in the war, for now. There is destruction in the east, but Ukraine might come out stronger, as happened with South Korea and Vietnam. Russia too seems to have found new customers and might come out OK. It is hard to see how Germany comes out well. This, at least, is how I see things today.
China passed us in life-expectancy in 2022, and also in fertility, going the other way. In China lifespan at birth increased to 77.3 years. In the US it dropped an additional 0.9 years, to 76.8. US lifespans suffered from continuing COVID and an increase in accidents, heart disease, suicide, drugs, and alcohol abuse. Black men were hit particularly hard, so that today, a black man in the US has the same life expectancy as he would in Rwanda. China seems to have avoided this, but should expect problems due to declining fertility and birth rates.
China passed us in life expectancy in 2022.
Fertility rates will eventually burden the US too, as US fertility is only slightly greater than in China, 1.78 children per woman, lifetime, compared to 1.702 in China. But China has far fewer people of childbearing ages, relatively, and only 47% are women. Three decades of one child policy resulted in few young adults and a tendency to abort girls. Currently, the birthrate in China is barely more than half ours: 6.77 per 1000, compared to 12.01 per 1000. And the proportion of the aged keeps rising. China will soon face a severe shortage of care-givers, and an excess of housing.
Years of low birthrate preceded the “Lost decades” of financial crisis in Japan and the USSR. Between 1990 and 2011, business stagnated and house prices dropped. China faces the same; few workers and more need for care: it’s not a good recipe.
Beginning about 1991, Japan saw a major financial collapse with banks failing, and home values falling. China seems over-due.
Few children also signals a psychic lack of confidence in the country, and suggests that, going forward, there will be a lack of something to work for. Already Chinese citizens don’t trust the state to allow them to raise healthy children. They have stopped getting married, especially in the cities, and look more to have fun.
Affluent women claim they can’t find a good man to marry: one who’s manly, who will love them, and who will reliably raise their standard of life. Women seem less picky in China’s rural areas, or perhaps they find better men there. However it goes, urban women get married late and have few children, both in China and here. China produces great, sappy, soap operas though: a country girl or secretary in a high-power job meets a manly, urban manager who lovers her intensely. A fine example is “The Eternal Love” (watch it here). It involves time travel, and a noble romance from the past. Japan produced similar fiction before the crisis. And a crisis seems to be coming.
While Japan and Korea responded quietly to crisis and “the lost decades,” allowing banks to fail and home values to fall, Russia’s response was more violent. It went to war with Chechnya, then with Belarus and Ukraine, and now with NATO. I fear that China will go to war too — with Taiwan, Japan, and the US. It’s a scary thought; China is a much tougher enemy than Russia. There is already trouble brewing over new islands that they are building.
Robert Buxbaum January 25, 2023. If you want to see a Korean soap opera on the Secretary – manager theme, watch: “What’s wrong with Secretary Kim”. (I credit my wife with the research here.) I suspect that Americans too would like sappy shows like this.
