Archives for November 2011

The Race To Collapse

As readers of this blog know, I have long regarded the return of economic crisis as an inevitability (because the core energy and no-growth predicament facing the Western world wasn’t solved in 2008-9 but merely kicked further down the road by increasing debt and printing money). It looks like 2012 will be the crunch year, as a series of inter-related crises are rapidly converging: (1) The European sovereign debt crisis; (2) The continuation of the chronic US inability to balance its books, and of instability in the Middle East; (3) The probable onset of serious declines in global oil production, as new oil megaprojects are no longer able to compensate for accelerating decline from existing fields; (4) heightened risks of a war with Iran, as the narrow window opens between the start of US delivery of the next-generation bunker buster MOP (from November 2011) and the culmination of the Iranian nuclear weapons program and its hardening against air strikes (next year or two).

The European debt crisis dominates headlines, with the Anglo-Saxon media crowing about the lazy, shiftless Meds (as opposed to the diligent and careful Germans) and blaming socialism for their problems. This of course has a number of flaws within it. Greeks work the most hours in the EU – 2000 per year, relative to 1300 in Germany. And the only major EU nations without huge debt and fiscal problems are the Scandinavians, who are about as “socialist” as one gets nowadays.

But this is all sidestepping the fact that debt and fiscal crisis afflict the entire Western world, and it is just that – due to the special political weaknesses of the Eurozone – have manifested first and foremost in Greece, Italy, and Spain. However, a look at the actual statistics reveals that even the “serious” countries are in a great deal of trouble. For instance, in 2010 both the US and Britain had bigger primary deficits (cyclically adjusted) than “basketcase” Greece, whereas Italy’s was actually positive! The Meds’ total net government debt is larger, but on the other hand, if even France is beginning to experience perturbations – a country whose fiscal balances are better in every way than Britain’s or America’s – then it surely cannot be long before the crows come home to roost in the Anglo-Saxon world.

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Putin The Peaceful?

At least, surely more so than Obama, winner of 2009’s Nobel Peace Prize.

Let’s do it by the numbers. Russia under Putin fought one war, in response to Georgian aggression against Ossetians with Russian citizenship and UN-mandated Russian peacekeepers. In contrast, Obama has participated in two wars of aggression: the Iraq War he inherited from G.W., and a new one in Libya. The latter is a war of aggression because NATO clearly exceeded its UN mandate to protect civilians, instead conducting a campaign clearly aimed at regime change. So Obama has presided over two more wars than Putin, and crucially, has participated in two wars of aggression to Putin’s zero.

If you insist on counting the Second Chechen War, then one must also tally the dozen or so countries in which the US is currently waging shadow wars involving drone strikes on terrorists – or to be more accurate, suspected terrorists. But at least Chechnya was an internal affair and presented a truly direct threat to Russia, with armed bands raiding over the borders. There is far less of a case to be made why the US has the right to prosecute an international “war on terror.”

This is why the adjudicators of the Confucius Peace Prize, in awarding it to Putin, proved themselves far less dishonest than the Nobel Committee. The ridicule they have been subjected to by the Western media is a compliment to their integrity.

Update: Mark Adomanis raises some additional points on this matter.

I Appear On RT To Discuss Occupy Wall Street

Here’s the video. Big thanks to the guys at RT, the channel that has been at the forefront of covering OWS for providing me with this opportunity.

I was contacted by RT after they noticed my post on why OWS isn’t happening in China and Russia. As befits a program aimed at an American audience, however, the conversation revolved around the prospects for OWS solely in the US. In particular, as winter approaches and media attention wanes, will the Occupy movement be able to remain relevant to its 99% constituency?

Unfortunately, as it was my first time on live TV, I did not manage to make the best impression – as the interview went on, I could not prevent stammers and pauses from beginning to infest my conversation. So apologies for that.

BRIC’s of Stability: Why Occupy Wall Street Isn’t Coming To Moscow Or Beijing

As repeatedly noted by Mark Adomanis, the Russian liberals and the Western media have predicted about 10 of the last zero Russian revolutions. Likewise, the “Jasmine Revolution” in China that was the subject of so much talk about a year ago has fizzled out like a wet firework. Meanwhile, the Arab world remains in the midst of convulsions, and political instability is spreading into the West – most visibly in Greece and the Med, but also in the guise of Occupy Wall Street and associated movements in the US.

This is no doubt disturbing and aggravating to Western supremacists (it is telling that that the media organization providing the most detailed coverage of OWS, RT, is both non-Western and the object of venomous bile from the American exceptionalism culture warriors). Doesn’t the West (and the US in particular) have democracy, freedom of assembly, freedom of speech, free media, economic opportunities, equality under the law, etc. – things that are all starkly and completely absent in countries of the Other, e.g. Russia and China? What the hell are the hippies and liberals protesting? Are they doped up unemployed losers, useful idiots of Leninist agents of influence, or both?

I think the answer is far simpler than it seems. In Russia, younger people tend to be both higher earning (their skills are better fitted to a capitalist economy) and more economically optimistic than their parents, not to mention their grandparents. They are also far more pro-capitalist, and substantially more supportive of Putin and Co. than the older generations (who have not done as well under capitalism, and who have fonder memories of communism). In fact, in the minds of Russian youth – and in stark contrast to the picture drawn by uninformed commentators – capitalism, prosperity, and the Putin era are closely linked. Hence, no real Russian equivalent of OWS (at least for now).

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