Post-Mortem

Mr Trump is practically gone and he is not coming back. (For one thing, he will be too old in 2024. For another thing, see below.) The political conditions that got such an un-preposterous candidate elected in 2016 however, those conditions, don’t look like they are going away. (I hope I am wrong.) A large fraction of Americans will continue to be ignored from an economic standpoint, as well as insulted daily by their better. Four years of insults thrown at people like me and the hysterical outpouring of contempt by liberal media elites on the last days of the Trump administration are not making me go away. Instead, they will cement my opposition to their vision of the world and to their caste behavior. I would bet dollars on the penny that a high proportion of the 74 million+ who voted for Mr Trump in 2020 feels the same. (That’s assuming that’s the number who voted for him; I am not sure of it at all. It could be more. Currently, with the information available, I vote 60/40 that the election was not – not – stolen.)

I never liked Trump, the man, for all the obvious reasons although I admired his steadfastness because it’s so rare among politicians. In the past two years, I can’t say I liked any of his policies, though I liked his judicial appointments. It’s just that who else could I vote for in 2016? Hillary? You are kidding, right? And in 2020, after President Trump was subjected to four years (and more) of unceasing gross abuse and of persecution guided by a totalitarian spirit, would it not have been dishonorable to vote for anyone but him? (Libertarians: STFU!)

Believe it or not, if Sen. Sanders and his 1950 ideas had not been eliminated again in 2020, again through the machinations of the Dem. National Committee, I would have had a serious talk with myself. At least, Sanders is not personally corrupt, and with a Republican Senate, we would have had a semi-paralyzed government that would have been OK with me.

One week after the event of 1/6/21, maybe “the breach” of the Capitol, many media figures continue to speak of a “coup.” Even the Wall Street Journal has joined in. That’s downright grotesque. I don’t doubt that entering the Capitol in a disorderly fashion and, for many, (not all; see the videos) uninvited, is illegal as well as unseemly. I am in favor of the suspects being found and prosecuted, for trespassing, or something. This will have the merit of throwing some light on the political affiliation(s) of the window breakers. I still see no reason to abandon the possibility that some, maybe (maybe) in the vanguard, were Antifa or BLM professional revolutionaries. Repeating myself: Trump supporters have never behaved in that manner before. I am guessing the investigations and the prosecutions are going to be less than vigorous precisely because the new administration will not want to know or to have the details be known of the criminals’ identity. If I am wrong, and all the brutal participants were Trump supporters, we will know it very quickly. The media will be supine either way.

It’s absurd and obscenely overwrought to call the breaching of the Capitol on January 6th (by whomever), a “coup” because there was never any chance that it would result in transferring control of the federal government to anyone. Develop the scenario: Both chambers are filled with protesters (of whatever ilk); protesters occupy both presiding chairs, and they hold in their hands both House and Senate gavels. What next? Federal agencies start taking their orders from them; the FBI reports to work as usual but only to those the protesters appoint? Then, perhaps, the Chairman of the Joint Chiefs interrupts the sketchy guy who is taking a selfie while sitting in the VP chair. He says he wants to hand him the nuclear controls football. (Ask Nancy Pelosi, herself perpetrator of a coup, though a small one.) If you think any of this is credible, well, think about it, think about yourself, think again. And get a hold!

That the Capitol riot was a political act is true in one way and one way only, a minor way. It derailed the electoral vote counting that had been widely described as “ceremonial.” Happened after (after) the Vice-President had declared loud and clear that he did not have the authority to change the votes. The counting resumed after only a few hours. There is no scenario, zero, under which the riot would have altered the choice of the next president. If there had been, the breach would have been a sort of coup, a weak one.

On 1/9/21, an announcer, I think it was on NPR, I hope it was on NPR, qualified the events as a “deadly” something or other. He, and media in general, including Fox News, I am afraid, forgot to go into the details. In point of fact, five people died during the protest and part-riot of 1/6/21. One was a Capitol policeman who was hit with a fire extinguisher. As I write, there is no official allegation about who did it. There is no information about the political affiliation, if any, of the culprit(s). For sure, protesters caused none of three next deaths which were due to medical emergencies, including a heart attack. The fifth casualty was a protester, who was probably inside the Capitol illegally, and who was shot to death by a policeman. She was definitely a Trump supporter. She was unarmed. Many people who are busy with their lives will think that Trump supporters had massacred five people because of the mendacity of the language used on air. Disgraceful, disgusting reporting; but we are getting used to it.

Today and yesterday, I witnessed a mass movement I think I have not seen in my life though it rings some historical bells. Pundits, lawmakers, and other members of their caste are elbowing one another out of the way to be next to make extremist pronouncements on the 1/6/21 events. Why, a journalist on Fox News, no less, a pretty blond lady wearing a slightly off the shoulder dress referred to a “domestic terror attack.” With a handful of courageous exceptions, all lawmakers I have seen appearing in the media have adopted extreme vocabulary to describe what remained a small riot, if it was a riot at all. I mean that it was a small riot as compared to what happened in several American cities in the past year. The hypocrisy is colossal in people who kept their mouths mostly shut for a hundred nights or more of burning of buildings, of police cars, of at least one police precinct (with people in it), and of massive looting.

It’s hard to explain how the media and the political face of America became unrecognizable in such a short time. Two hypotheses. First, many of the lawmakers who were in the Capitol at the time of the breach came to fear for their personal safety. Four years of describing Trump supporters as Nazis and worse must have left a trace and multiplied their alarm. Except for the handful of Congressmen and women who served in the military and who saw actual combat, our lawmakers have nothing in their lives to prepare them for physical danger. They mostly live cocooned lives; the police forces that protect them have not been disbanded. (What do you know?) I think they converted the abject fear they felt for a short while into righteous indignation. Indignation is more self-respecting than fear for one’s skin.

My second hypothesis to explain the repellent verbal behavior: The shameful noises I heard in the media are the manifestation of a rat race to abandon a sinking ship. Jobs are at stake, careers are at stake, cushy lifestyles are at stake. “After Pres. Trump is gone, as he surely will be soon,” the lawmakers are thinking, “there will be a day of reckoning, and a purge. I have to establish right away a vivid, clear, unforgettable record of my hatred to try and avoid the purge. No language is too strong to achieve this end.” That’s true even for Republican politicians because, they too have careers. Trump cabinet members resigned for the same reason, I think when they could have simply declared, “I don’t approve of…. but I am staying to serve the people to the end.”

Along with an outburst of extremist public language, there came a tsunami of censorship by social media, quite a few cases of people getting fired merely for having been seen at the peaceful demonstration (all legal though repulsive), and even a breach of contract by a major publisher against a US Senator based solely on his political discourse (to be resolved in court). And then, there are the enemy lists aired by the likes of CNN, for the sole purpose of ruining the careers of those who served loyally in the Trump administration.

President-elect Bidden called for “unity.” Well, I have never, ever seen so much unity between a large fraction of the political class – soon an absolute majority in government – the big media, and large corporations. I have never seen it but I have read about it. Such a union constituted the political form called “corporatism.” It was the practical infrastructure of fascism.

As if political correctness had only been its training wheels, the vehicle of political censorship is speeding up. The active policing of political speech can’t be far behind. It won’t even require a revision of the federal constitution so long as private companies such as Twitter and Facebook do the dirty work. Soon, Americans will watch what they are saying in public. I fear that national police agencies will be turned to a new purpose. (The FBI, already proved its faithlessness four years ago, anyway.) Perhaps, there will be little collective cynicism involved. It’s not difficult to adopt liberalism, a self-indulgent creed. And what we understand here (wrongly) to be “socialism” only entails an endless Christmas morning. So, why not? The diabolical Mr Trump will soon be remembered as having incited some misguided, uneducated, unpolished (deplorable) Americans to massacre their legitimately elected representatives.

Incidentally, in spite of a near consensus on the matter, I have not seen or heard anything from Pres. Trump that amounts to incitement to do anything (anything) illegal. There are those who will retort that inviting his angry supporters to protest was tantamount to incitement to violence. The logic of this is clear: Only crowds that are not angry should be invited to protest. Read this again. Does it make any sense? Make a note that the constitutional propriety of Mr Trump’s belief that the election had been stolen is irrelevant here. One does not have to be constitutionally correct to have the right to protest.

Night has fallen over America. We are becoming a totalitarian society with a speed I could not have foreseen. Of course four years of unrelenting plotting to remove the properly elected president under false pretenses paved the way. Those years trained citizens to accept the unacceptable, to be intellectually docile. Suddenly I don’t feel safe. I am going to think over my participation in the social media both because of widespread censorship and because it now seems dangerous. As far as censorship is concerned I tried an alternative to Facebook, “Parler,” but it did not work for me. Besides, it seems that the big corporations, including Amazon and Apple, are ganging up to shut it down. The cloud of totalitarianism gathered so fast over our heads that all my bets are off about the kinds of risks I am now willing to take. I will still consider alternatives to Facebook but they will have to be very user-friendly, and reasonably populated. (If I want to express myself in the wilderness, I can always talk to my wife.) For the foreseeable future, I will still be easy to find in the blogosphere.

Best of luck to all my Facebook friends, including to those who need to learn to think more clearly, including those whose panties are currently in a twist.

Casual Empiricism: USPS

It looks to me (as I refresh tracking numbers) that the post office is still reeling after several months of attempted voter suppression. It also looks to me like even though Trump is on his way out, there is no reason to believe that someone just as terrible couldn’t come along at any point in the next 50 years and outdo him.

As far as the USPS goes I think there’s a fairly simple solution that should make most people happy: split the USPS in two: a private for-profit firm that delivers junk mail and competes with UPS and Amazon, and a government agency that handles government business including things like distributing ballots and census surveys.

But the USPS is just one small part of a much larger problem. When the Trump II comes along, he’ll have more powers, including (very likely) a lot more power to mess with the health care sector. There are a lot of reasons I don’t like the idea of more government in health care, but this one should be terrifying to everyone.

The Saudi-Qatar thaw

Introduction

On January 5, 2021, at the annual Gulf Cooperation Council (GCC) Summit, at Al-Ula, an agreement was signed between Saudi Arabia (along with its allies) and Qatar that restored diplomatic ties.

Blockade imposed by Saudi Arabia and its allies

In June 2017, Saudi Arabia, Bahrain, the UAE, and Egypt had imposed a trade, travel, and diplomatic embargo on Qatar (two GCC states, Oman and Kuwait, did not cut diplomatic ties with Qatar). Qatar’s alleged support for terrorism, and its close ties with Iran, were cited as the main reason for the decision to impose this blockade.

Saudi Arabia and its allies had closed its sea routes, land borders, and airspace to Qatari vehicles. As a consequence of the blockade, Qatar was compelled to use Iranian air space. Riyadh re-opened its airspace and land and sea borders with Qatar on January 4, 2021, and other countries will be following suit.

Attempts had been made by the US to broker a deal between both sides in 2017. Riyadh, along with other countries which had imposed the blockade on Qatar, had presented 13 conditions to Qatar including; shutting down of Al Jazeera and other Qatar-funded news outlets, downgrading ties with Iran and Turkey, and refraining from meddling in the internal affairs of other countries. Qatar categorically refused these conditions and stated that it would not in anyway compromise its sovereignty.

Qatari Foreign Minister, Sheikh Mohammed bin Abdulrahman Al Thani, had said that “we are willing to negotiate any legitimate grievances with our neighbours, but we will not compromise our sovereignty.”

He also dubbed the blockade imposed on Qatar as a violation of international law.

The agreement signed for restoration of diplomatic ties

The Saudi Foreign Minister, Faisal bin Farhan al-Saud, while commenting on the agreement signed to end the blockade of Qatar, stated:

What happened today is… the turning of the page on all points of difference and a full return of diplomatic relations.

Saudi Crown Prince Muhammad Bin Salman dubbed the agreement as a reiteration of “Gulf, Arab, Islamic solidarity and stability.”

Senior Advisor to the White House, Jared Kushner (also Donald Trump’s son-in-law), along with Middle East envoy Avi Berkowitz and Brian Hook, a special State Department adviser, witnessed the agreement for restoring diplomatic relations between Riyadh, its allies, and Qatar.

Role of the US, Kuwait, and Saudi Arabia

During his visit to the Middle East in December 2020, where he met with the Saudi Crown Prince and the Emir of Qatar, Tamim Bin Hamad Al Thani, Kushner is supposed to have pushed for the removal of the blockade on Qatar.

Kuwait too has been an important player in trying to reduce tensions between Qatar and the other Arab states. In December 2020, the Foreign Minister of Kuwait, Al Sabah, had hinted at progress in this direction, though Qatar had stated that it would only accept any agreement which was fair.

Iran and Saudi Factor

There are two important factors behind this agreement. First, that the Saudis want to send a positive message to the incoming Biden administration. Biden has been critical of Saudi Arabia’s poor track record on human rights, and he has even dubbed Riyadh as a “pariah state.” The Biden administration has also stated that it will re-assess ties with Riyadh, and it has accused Trump of being soft vis-à-vis the Saudis.

The Trump administration, especially Jared Kushner, is taking credit for the removal of the blockade, with one senior official dubbing it as a massive breakthrough and that “it will allow for travel among the countries as well as goods. It will lead to more stability in the region.”

The Trump administration is calling this agreement its second most important Middle East accomplishment, after the Abraham Accords (through which relations were normalized between Bahrain, the UAE, and Israel).

Riyadh too is likely to take credit for its role in reducing tensions with Qatar, which is home to the largest American military facility in the Middle East – the Al Udeid air base.

The second important part is the Iran factor. Saudi Arabia is wary of the Biden administration’s possible outreach to Iran, and it has sought to isolate Iran through this step. As a result of the embargo, Qatar had moved much closer to both Turkey and Iran.

Conclusion

In conclusion, a number of economic and geopolitical factors have resulted in removing the embargo on Qatar. While it is likely to reduce tensions, there are some major divergences between Qatar and other Arab countries on crucial foreign policy issues, especially Iran. Qatar is unlikely to accept any conditionalities, and unlikely to re-orient its foreign policy significantly. It will also be interesting to see how the incoming Biden administration views the role of Saudi Arabia in this agreement.

EU-China trade talks: More than just economics

The in-principle agreement between the EU and China over the EU-China Comprehensive Agreement on Investment (CAI) is significant both from an economic and geopolitical standpoint.

The first round of talks for EU-China CAI began in January 2014 (it was only in 2016 that there was some agreement between both sides on the broad contents of the CAI). Ties between the EU and China too had witnessed a sharp deterioration in the aftermath of the covid-19 pandemic, and a number of EU member states, including Germany, Spain, and Italy, had tightened FDI regulations with an eye on preventing Chinese takeover of companies, especially in sensitive sectors like security.

In the month of September, while commenting on the possibility of the CAI, the European Commission President Ursula Von der Leyen had stated: “China has to convince us that it’s worth having an investment agreement.”

Key contents of the agreement

The CAI will ensure a uniform arrangement for the whole of Europe with China. The key issues which will be addressed through the CAI include; resolution of disputes, greater transparency with regard to Chinese state subsidies, and curbs on China’s practice of asking foreign investors to share their technology in lieu for market access.

China has also agreed to address issues pertaining to sustainable development – such as environment and climate (China has agreed to implement the Paris Agreement on climate change). Beijing has also agreed to implement the International Labour Organisation (ILO) conventions.

According to an EU official, substantial commitments have been received from China on three issues: market access, level playing fields, and sustainable development. One of the strong backers of the CAI has been the German Chancellor Angela Merkel.

The deal will provide the EU greater access to China’s market. While the EU provides a significant amount of market access to China, the same can not be said of Beijing. Beijing is supposed to have made a firm commitment to the EU towards greater market access, especially in manufacturing (which makes up more than half of EU’s investment in China, including the automotive sector and basic materials).

Geopolitical implications

The deal has an important geopolitical dimension to it. While in the aftermath of the covid-19 pandemic, ties with the Western world, including the EU, had witnessed a downward spiral, this deal is important in terms of symbolism. Chinese media publications have hailed the finalization of this agreement, emphasizing the point that the EU has adopted an independent stance vis-à-vis China and not followed Washington’s line.

Gao Jian, a scholar at Shanghai International Studies University, states:

Deeper China-EU ties will decrease possibility that the US will be able to hijack Europe for its anti-China chariot. Hopefully, the completion of the China-EU BIT talks will sound an alarm bell to the US administration and send this message: cooperation is the only way out for China-US relations.

If one were to look at US reactions, it is not only officials in the Trump Administration (which has a little over two weeks in office) who have been skeptical, but those from the incoming Biden Administration as well. Matt Pottinger, Trump’s Deputy National Security Advisor, has stated:

Leaders in both U.S. political parties and across the U.S. government are perplexed and stunned that the EU is moving towards a new investment treaty right on the eve of a new U.S. administration.

One of Biden’s key thrusts has been on working with the EU, and his pick for NSA chief, Jack Sullivan, had said that the US would like to work with the EU on common concerns vis-à-vis China’s ‘economic practices.’ Many observers argue that the decision of the EU could drive a wedge between the EU and the US, and this was one of Beijing’s main aims. It has also been argued that trilateral economic cooperation between Japan, the EU, and the US vis-à-vis China could also be impacted by the CAI.

Conclusion

In conclusion, the EU has sent out a clear message: that it would like to chart its own course given that it has its own economic interests, and not necessarily toe the US line vis-à-vis Beijing. For China, it is important in terms of messaging, as is evident from the tone of the Chinese media who are trying to dub this as a snub by Brussels to Washington DC. While US President-elect Biden has sought joint cooperation with the EU, the EU and the US will need to be on the same page with regard to dealing with China.

Next

I have to report that I think my advancing age is not preventing me from gathering facts and exercising criticality. (Sorry, Joe; I don’t mean to put you down. – Joe Biden and I are the same age. But, I know what I am talking about.)

The year 2020 was rough, of course, not so much for me or for my wife Krishna, as for our children and others we love. For the two of us, sheltering in place did not really change our habits all that much except that our shopping for ourselves became progressively more limited. We didn’t party much before; we did not party in 2020. We had not partied that much in 2019. (That’s unless you count staying up until eleven pm with a small glass of Marsala as partying.) We might start partying in 2021 but it’s not all that likely!

The COVID affair did two things for me. First it reminded me of what a thin veneer rationality really is in Western society. We saw many lose their cool and accept the unacceptable. I was reminded also of something I knew in my bones, from thirty years of teaching: Even otherwise educated people don’t know how to deal with simple numbers. So, 320,000 excess deaths from the C-virus for a population of 320 million correspond to an excess death rate of 0.001. That’s one per thousand; it’s a very small figure. (I am deliberately leaving aside the idea that the number of deaths from COVID is almost certainly overestimated in this country. One problem at a time works best.) If people understood how small the number is, they would respond accordingly that is, with calm, perhaps. The evidence of innumeracy is all over our media, and all over Facebook, on all political sides. I don’t know why we keep doing such a piss-poor job teaching basic math. (It’s been like this as far back as I can remember.) Perhaps, it’s because people who can’t count don’t know that they can’t count.

Speaking of innumeracy, another topic rises to my mind irrepressibly. Above, I was referring to the task of interpreting simple fractions for example. There is something else missing among those, specifically, who are tasked with explaining what causes what, and who take the task seriously. People so engaged have always had to deal with two problems. First, there are multiple real causes to the thing they wish to understand, multiple causes of different strengths. So, weight gain is influenced both by calorie intake and by amount and intensity of exercise; fact. Calorie intake counts more than exercise. Second, there are possible causes that may not be causes at all. So, in addition to the two causes above, one may believe that weight gain is influenced by the ambient temperature. (It’s not.) Well it turns out that there is a series of tools that help understand better both kinds of problem. I mean much better.

There exists a toolbox called “econometrics” that does exactly that. It’s far from new. I learned econometrics in the seventies, and I was not a pioneer. Media explainers have evidently no acquaintance with it and probably don’t even know the tools exists. Now, I don’t want to give the wrong impression, learning econometrics is not light intellectual lifting but it’s within the reach of any smart person with a little time. I am baffled by the fact that something so obviously useful to figure out with real data whether X causes Y, in addition to Z, has failed to leach into ordinary educated society in fifty years and more. It’s discouraging about the pace of, or even the reality of progress.

The second important thing that happened in 2020 is that government at all levels gave us striking examples of its incompetence, and further, of its tendency immediately to turn tyrannical when frustrated. In the US and in France (whose case I am following pretty closely in the French media), government decisions have ruined a good part of the economy without real explanation being forthcoming. I mean closing by force thousands of small businesses that have little or no chance of recovering. I mean closing schools which prevents some, or many parents from going to work. The explanations for such actions are too light-weight to be taken seriously and they are frequently reversed like this: X causes Y; Ooops! X does not cause Y, Ooops! X does cause Y, sort of… Sometimes, often, good government consists in doing less rather than more: “We don’t know; do what you think is right,” at the most local level possible.

And, speaking of everyday government incompetence: The state of California wants to eliminate all internal combustion engines cars (and my own little pick-up truck) within fifteen years, to replace them with all-electric vehicles. That’s in a state where the local (PG&E, in central California) power monopoly has chronic trouble merely keeping the lights on. So, the question arises: Does the State of California really not know or does it know and not care (because it’s all about saving the planet)? I am not even sure which answer I prefer.

In the US, in addition to the COVID pandemic, we had a half a year of riots and burning of businesses, all in large cities held by Democrats for a long time. The inability, or the unwillingness, to stop the civil strife was striking. It expressed either a stunning degree of incompetence, or of complicity with the rioters. One explanation does not exclude the other, of course: Personal cowardice can easily hide under ideological fellowship. And ideology can generate cowardice.

In the minds of small government conservatives like me, the minimal task of government is to keep order so that individuals and companies can go about their constructive business. Local government largely failed in America in 2020. Extreme libertarians were more right than I thought. I wonder, of course, how much worse it would have been if a liberal had held the presidency instead of Donald Trump.

Government demonstrated to me in 2020 that it tends to be both incompetent and tyrannical. The thought crosses my mind that if it were more competent, it would be less inclined to tyranny.

The riots were adroitly attached to protests against the deaths of black suspects at the hands of police in questionable circumstances. They were staged as anti-racist protests, and especially as protests against “systemic racism.” I have already written why I think the police killings of black citizens in general are not racist acts. (Note: This is a long article. It can be read in nine segments, for convenience.)

I have also argued that in today’s America, systemic racism is too hard to find to lose sleep over it. Black Lives Matter, the organization, did almost all of the staging. It’s an organization of professional Marxist revolutionaries. I believe they are merely using alleged racism as a means to trigger a revolution in the US, or at least, to make their brand of statism gain ground, or at worst, to earn some credibility among the ill-read but well-intentioned.

In spite of the mendacity of the BLM campaign in every way, it may have done some good simply by drawing attention. I have always thought that American society has never really digested the fact of slavery. I mean the fact that it was 250 years of unrelenting atrocities. Some good may come from greater and deeper knowledge of that past. Same reason I am horrified by the brutal removal of statues and by the biased (“woke”) erasure of history going on in the streets and in universities as I write. Not facing the legitimate grievances about yesterday is like asking for insidious and endless blackmail today. That’s what we have now. There is a better way.

Do I think the Democrats, some Dems, stole the presidential election? I am not sure. I am sure of two things however: Many Democrats in several locations tried to steal it as much as they could. Some have argue in their defense that it was just “normal” cheating, that it happens the same every year. I want to know more about that. The second thing is that – to my knowledge (I am educable) there have been few or no complaints of cheating against Republican entities. Electoral cheating is a Democratic specialty.

Stealing a word from conservative commentator, Mark Stein, I fear we are entering a post-constitutional era. I don’t know what to do about it. I wish secession were more practical. It’s happening anyway on a small scale with tens of thousands voting with their feet by leaving California and New York State. It’s a first step. If the federal government would shrink some, I could imagine that this sort of peaceful partial secession would work for all: a Middle America centered on Texas, and an Extreme America based in California and New York State. The two parts linked in a loose confederacy. (Oops, wrong word!) Unfortunately, there is no miracle in sight by which the federal structure will become more skinny, with a shorter reach.

2020 saw the dramatic introduction of censorship and also of guided thought throughout the social media. If capitalism is allowed to function, the giant privately held businesses responsible for these poisons, and first and foremost Facebook, will have to withstand the emergence of rivals that will compete on that basis, precisely. I have tried one such and it did not work for me. There is no reason why there can’t be more, better ones. In the worst scenario with which I come up, the forces of darkness cannot eradicate capitalism fast enough to prevent this from happening. That’s my optimistic prediction for 2021 and beyond.

Other interesting things have happened to me that are kind of hard by their nature to recall. Here is the main one. As anthropogenic global warming became the state religion in many places, including to an extent, in the US, its narrative lost its remaining credibility in my mind. (Ask me why.)

Finally, we saw again that Communist China is too big and too powerful for a country that does not share our values. I refer to mass imprisonment without trial and outside the law, extra-judicial kidnapping by the government, guaranteed non-freedom of the press. This is true even if most rank-and-file Chinese citizens are satisfied with their government. (They may well be.) I am not Chinese myself. Chinese economic power has to be restricted (even if doing so is unfair). The influence of the Chinese Communists in America must be constrained. If Finland, for example were as big as Communist China, I wouldn’t mind so much, or at all.

I wish all of us a better year, more wisdom, more intellectual honesty, the ability peacefully and firmly to resist creeping tyranny.

UK-Turkey Free Trade Agreement: Beyond the Economics

Introduction

On December 29, 2020, the UK and Turkey signed a Free Trade Agreement (FTA) which will become effective January 1, 2021, after the UK leaves the EU. Turkey’s Trade Minister, Rushkar Pekcan, and the British Ambassador to Turkey, Dominick Chilcott, signed the agreement. 

The timing of the agreement was interesting, since the FTA was signed days after the UK and EU had managed to clinch a Brexit trade deal, with great difficulty, and after the US imposition of sanctions on Turkey for the purchase of S400 missiles from Russia (the decision to impose sanctions is likely to have its impact not just on Turkey-US ties, but also between Turkey and other NATO member states).

Commenting on the importance of the deal, Pekcan said:

The free trade agreement is a new and special milestone in the relationship between Turkey and United Kingdom.

President Recep Erdogan, while referring to the significance of the FTA a day before it was signed, had said that it would create a win-win situation for both Turkey and the UK. He also said that the deal is crucial, and dubbed it as Turkey’s most important economic agreement after the 1995 Customs Union.

Economic importance of the FTA 

If one were to look at the economic significance of the deal, it is dubbed to be the fifth largest trade deal for Britain. The UK-Turkey FTA is also likely to give a significant boost to the bilateral trade between both countries. The UK is Turkey’s second largest export market (for commodities including vehicles, textiles, and electrical equipment). The agreement is also important from Turkey’s point of view because without a deal well over 75% of Turkey’s exports to the UK would have been subject to tariffs. The FTA will also ensure existing preferential tariffs for 7,600 British businesses that exported goods to Turkey in 2019.

According to estimates, the potential for bilateral trade between Turkey and Britain is up to $20 billion. Britain is Turkey’s fifth largest investor (investment is estimated at $11.6 billion) and a total of 2,500 British companies are based in Turkey. 

UK Trade Secretary Elizabeth Truss, while commenting on the deal, said ‘[…it] provide[s] certainty for thousands of jobs across the UK in the manufacturing, automotive, and steel industries.’

While the key features of the deal are known (it seeks to prevent supply chains in automotive and manufacturing sectors, and also covers all agricultural and industrial goods), the FTA could also give a fillip to deeper defense cooperation between the UK and Turkey (in November 2020, Turkey and the UK held defence exercises for the first time).

Geopolitical context

The FTA also has geopolitical significance, because the UK is one of the few Western countries with which Turkey has a cordial relationship. While all eyes have been on the imposition of US sanctions, and its impact on the Washington-Istanbul relationship, Turkey’s ties with the EU have also witnessed a steady deterioration due to a multitude of factors in recent years. Turkey has also not been on the same page as the Western world on a number of geopolitical issues. This includes the Syria issue, as well as the dispute between Azerbaijan and Armenia over Nagorno-Karabakh.

Turkey’s military operation in Syria and reactions

Turkey’s military offensive against Kurdish forces in Northern Syria in 2019 received strong responses from EU member states and the US. While the EU was critical of the action, US policy makers had urged Donald Trump to freeze assets belonging to Turkish leaders and block the sale of arms to Istanbul. Trump had written to Erdogan to refrain from such an action, but the Turkish President paid no heed to the same. It would be pertinent to point out that after Turkey’s October 2019 invasion of Syria, Britain had stopped sales of arms, but said it would not be providing new export licences for weapons which may be used in military operations in Syria.

If one were to look at the Azerbaijan-Armenia issue, France has been vocal in supporting international supervision of the ceasefire and has also expressed apprehension that Turkey and Russia may exclude Western countries. 

The EU has also been uncomfortable with Turkey’s policy in the Mediteranean. Only recently, the EU imposed sanctions against Turkish companies and individuals for oil drilling. Greece had wanted sectoral sanctions but this was resisted by German Chancellor Angela Merkel and Bulgarian Prime Minister Boyko Borissov, who shares a close rapport with Erdogan.

Russia-Turkey relationship

While it is believed that the main reason for the rift between Turkey and the West is the former’s growing proximity to Russia, Istanbul and Moscow too have divergences over geopolitical issues (be it Syria, Libya, or Azerbaijan). Only recently, the presence of the Turkish President at Azerbaijan’s military parade on December 10, 2020, to mark Azerbaijan’s victory over Russian ally Armenia with Turkish assistance, would not have gone down well with Moscow. Yet in public, Russia has refrained from criticizing Turkey. In an interaction with the media in December 2018, Russian President Vladimir Putin stated that sometimes Russian and Turkish interests do not ‘coincide,’ yet he also praised Turkey for pursuing an ‘independent foreign policy’ in spite of being a member of NATO and honoring its commitments. 

He has also stated that Moscow needs to be ‘patient’ and adopt a more compromising stance vis-à-vis Turkey. 

Erdogan does realize that he cannot afford a sudden deterioration of ties with the US, and his reconciliatory statements vis-à-vis Israel, and the Turkish decision to appoint an envoy after more than two and a half years, is being viewed as a step towards mending ties with the incoming Biden Administration.

Conclusion 

The Britain-Turkey FTA is important not just for economics but also for geopolitical reasons. While Britain will deal with the realities of a post-Brexit world, and such FTA’s will be important in navigating the same, for Turkey the deal is important in the context of the geopolitics of the Middle East and beyond.

Prediction market update

The market for who wins the presidency closed this morning! But the Electoral College margin of victory market was still open and at 98 cents for the already certain outcome. Maxing out my position there would mean $17 for free! So I did, and the market dipped to 97 cents.

This truly is the dumbest jack in the box. We all know exactly what’s going to happen, and yet…

Internet, over

Yo, I never thought I’d say this, but I’m bored with the internet. It shouldn’t be this way. Trump/Biden. Covid-19. China. Morocco/Israel. Current events are meh. Could it be me? Have I become boring?

Maybe it’s just information overload. Like, Israel and Morocco basically blessed each others’ occupations during the craziest year since…1989? 1991? 2001? 2003? It’s been awhile since we’ve had a year as crazy as this one. Israel might be 2020’s biggest winner (country-wise). I think China or the US is 2020’s biggest loser.

Currently reading Mann’s Buddenbrooks, but I’m only on page 32 (Woods’ translation). Also: parenting.

Holidays blurb

I hope you have been enjoying the nightcaps. Life has been busy. I read somewhere that so-called “progressives” are pushing to make the executive branch as strong as possible. It’s like they learned absolutely nothing from the Trump years.

Luckily, Joe Biden doesn’t pander to the loudest factions on his side of the aisle. Things are already looking up for 2021.

Andrei has a new book out: Socialism as a Secular Creed: A Modern Global History. I’ll have more on it later. Here’s the link. Y’all stay safe out there.

Biden’s Middle East: Iran, Saudi Arabia, and Israel


Introduction  

As President-elect Joe Biden gets ready to take over, he faces numerous foreign policy challenges. One of the most complex issues is likely to be Washington’s approach vis-à-vis Tehran. A lot of analysis has focused on how Biden has spoken about conditional entry into the Joint Comprehensive Plan of Action (JCPOA)/Iran agreement from which Donald Trump withdrew in 2018 – subject to Iran returning to full compliance. There have been indicators that Biden may get on board with the agreement unconditionally to give some space to the current government of Hassan Rouhani, which will face elections in 2021. Sanctions have taken their toll on the Iranian economy (Foreign Minister Javad Zarif recently stated that sanctions have inflicted damage to the tune of $250 billion), and hardline voices have become stronger – the last thing the US would want is hardliners capturing power.  

For the US and its allies, the concern is about Iran’s nuclear program. In an interview to New York Times on December 2, Biden said “the best way to achieve getting some stability in the region” was to deal “with the nuclear program.”

For Iran, one of the major concerns is the fact that the country’s economy is in the doldrums. Rouhani and Zarif have both indicated this, and on more than one occasion. After Iran’s parliament and its Guardian Council recently gave a go ahead to a law that threatens to not permit UN inspections and to increase the level of uranium enrichment beyond the 2015 deal if sanctions were not removed within two months, Zarif clearly stated that these laws were not ‘irreversible’: 

The Europeans and USA can come back into compliance with the JCPOA and not only this law will not be implemented, but in fact the actions we have taken … will be rescinded. We will go back to full compliance.

Saudi factor

US dealings with Iran hinge on the overall geopolitical dynamics of the Middle East and have been influenced by the relations of Israel and Saudi Arabia with Tehran. During the Trump administration, Israel and Saudi Arabia had a strong influence over American policy towards Iran. Even as Trump prepares to demit office, his administration is making it clear that there will be no change in US ‘maximum pressure’ policy vis-à-vis Iran (in fact Iran has been projected as the main threat to security in the Middle East). This includes imposition of sanctions, and also upping the ante vis-à-vis Iran via Saudi Arabia and Israel (serving and retired US officials point to an Israeli hand in the assassination of Mohsen Fakhrizadeh, which would make US diplomacy vis-à-vis Iran tougher). 

Biden, too, has indicated that he will consult other countries with regard to his Iran policy. In his interview to the New York Timesthe President elect said:

In consultation with our allies and partners, we’re going to engage in negotiations and follow-on agreements to tighten and lengthen Iran’s nuclear constraints, as well as address the missile program.

The key question is to what degree will Biden consult other stakeholders in the Middle East, such as Israel and Saudi Arabia. According to observers, neither will have a veto over Biden’s Iran policy, as they did have during the Trump administration (Trump had a strong personal rapport with Israeli Prime Minister Benjamin Netanyahu as well as the Saudi royal family). Here it would be pertinent to point out that while no US President can afford to neglect Israel or Saudi Arabia, Biden has been critical of Saudi Arabia, specifically in the context of its Human Rights record, in the past.  

Saudi Arabia and the Biden Administration 

Keeping this in mind, Saudi Arabia has sought to build a perception that it is open to removing the economic blockade vis-à-vis Qatar (the blockade was imposed by Saudi Arabia and other Arab countries in June 2017). A statement was made by the Saudi Foreign Minister regarding possible headway between Qatar and other countries which had imposed a blockade.  

Days after Jared Kushner’s visit to the Middle East, where he met with the Saudi Crown Prince as well as the Emir of Qatar, and is supposed to have discussed the resumption of Qatari planes using Saudi and UAE’s airspace, Prince Faisal bin Farhan Al Saud stated: 

We have made significant progress in the last few days thanks to the continuing efforts of Kuwait but also thanks to strong support from President Trump.

Senior Qatari officials, including the Foreign Minister, said that while a resolution was welcome, it needed to be based on ‘mutual respect.’ Iran – which shares cordial ties with Qatar – welcomed the possibility of removal of the blockade. Iranian Foreign Ministry spokesperson Saeed Khatibzadeh stated: 

We straightforwardly and promptly welcomed any settlement of tensions in the Persian Gulf region. The Iranian foreign minister adopted a stance on the issue and said that within the framework of the good-neighbourliness policy, we embrace any move at any level to politically resolve the crisis in the Persian Gulf.

Statement regarding the JCPOA 

Saudis have also indicated that they would like to be consulted with regard to the US getting on board with the JCPOA. Said Saudi foreign minister, Prince Faisal bin Farhan, while speaking at a conference: 

I think we’ve seen as a result of the after-effects of the JCPOA that not involving the regional countries results in a build-up of mistrust and neglect of the issues of real concern and of real effect on regional security.

While the foreign minister indicated that Saudis have not been consulted so far by Biden, he also stated that Riyadh was willing to work with Biden.  

Conclusion 

Biden, unlike Trump, is likely to consult important stakeholders, but on the Iran issue he will have limited space and can not allow other countries to exercise inordinate influence. Biden is likely to work closely with US allies, and is likely to go by the advice of the European Union in general and the E3 in particular. Statements from Tehran indicate that in spite of the Trump administration’s aggressive approach vis-à-vis Iran, there is space for negotiation though Biden may have to give up on his earlier conditionalities of getting on board the JCPOA. Much will depend upon the Trump administration’s approach vis-a-vis Iran for the remaining duration, and whether or not the Rouhani administration can prevent hardliners from setting the agenda.

A couple of post-election thoughts

  1. The left has not learned the right lesson.
  2. What the hell is up with Predictit?

Trump was the perfect Madisonian teachable moment. A horrifying figure who I wouldn’t trust to watch my drink while I got up to hang my coat. The lesson should have been clear: scale back the power in the Oval Office. But now that the pendulum has swung the other way, they “are urging him to follow President Trump’s example”. This is why we can’t have nice things.

Meanwhile, in a world where people are putting their own money on the line, people are still holding out hope that Trump will win the election he just lost. The market for predicting the winner of the presidential election has 10’s of thousands of transactions and places the probability that Trump or Biden wins at 103%. As an economist I find it disconcerting that I can still buy contracts of “Biden to win” at 88 cents. The lesson I’m taking away is that (at least when Trump is involved) there’s a wide margin of error on how accurate the prediction market estimate is.

On Joe Biden and America’s relationship with Iran

One of the important foreign policy priorities of President-elect Joe Biden, which will have an impact not just on the US but a number of its allies in the West – such as the UK, Germany, France (the E3), India, and Japan – is Washington’s ties with Iran. 

It will be interesting to see the ultimate shape which Biden’s Iran foreign policy takes place. Days before the announcement of the election result, Iran’s Foreign Minister Javad Zarif stated, in an interview to CBS news, that Iran viewed the statements emanating from the Biden camp positively, though Iran would have to wait and watch. 

While commenting on the Biden-Harris victory, Iranian President Hassan Rouhani urged the US to return to the JCPOA (Joint Comprehensive Plan of Action). Said Rouhani

Now, an opportunity has come up for the next U.S. administration to compensate for past mistakes and return to the path of complying with international agreements through respect of international norms 

Donald Trump’s withdrawal from the JCPOA – Iran/P5+1 agreement in 2018, had been criticized by allies, including the E3, who were signatories to the agreement. 

President-elect Joe Biden has also unequivocally stated that he is open to the US rejoining JCPOA, subject to the fact that Iran returns to compliance with the nuclear agreement. Biden, who also served as Vice President under Obama (who had fervently backed the JCPOA), has been critical of the Trump Administration’s approach towards Iran, dubbing it as a failure. During the midst of the coronavirus pandemic, Biden, along with many US allies, had also advocated that the US relax Iranian sanctions temporarily on humanitarian grounds. 

In recent months, Washington has imposed more sanctions on Iran, the latest instance being sanctions imposed days before the election on Iran’s Ministry of Petroleum, the National Iranian Oil Company, and its oil-tanker subsidiary. The reason cited for sanctions is the financial support provided by these companies to Iran’s Islamic Revolutionary Guards Corps (IRGC). It would be pertinent to point out that the US was unable to snapback Iranian sanctions which had been removed under the JCPOA – UNSC members blocked US attempts. While there is skepticism with regard to the revival of the deal given that incumbent Iranian President Hassan Rouhani himself is likely to face elections soon, and there is limited room for manuevre given that hardliners in Iran (whose clout has increased as a result of Trump’s Iran policy), are averse to any engagement with the West. Senior Iranian officials have also stated that they will not accept any conditionalities from Washington.

Biden may have fundamental differences in his approach vis-à-vis the Middle East as compared to Trump for a variety of reasons. 

First, Biden is likely to be less confrontationalist vis-à-vis Iran as has already been indicated by him. 

Second, Donald Trump had a far better relationship with Gulf Cooperation Council (GCC) countries, like UAE, Saudi Arabia, and others like Turkey and Egypt. Trump made no qualms about getting along with authoritarian leadership of these countries, and turning a blind eye to human rights violations in Saudi Arabia.  

Trump touted agreements between Middle Eastern countries Bahrain, the UAE, and Israel as one of his major achievements. To be fair, even his critics would grant him credit for the same. What puzzled many was his flexibility vis-à-vis North Korea and his obduracy in engaging with Iran. Former President Obama while commenting on the US withdrawal from JCPOA had remarked: 

Indeed, at a time when we are all rooting for diplomacy with North Korea to succeed, walking away from the JCPOA risks losing a deal that accomplishes – with Iran – the very outcome that we are pursuing with the North Koreans

Third, a more flexible engagement will prevent Iran from further swaying towards China, something Washington would want to prevent. One of the key factors cited for the Iran-China 25-year agreement (which will bolster economic and strategic relations between both countries) is the approach of the Trump Administration vis-à-vis Iran. 

Apart from this, Biden, who has repeatedly reiterated the point about engaging with allies, is likely to take their advice. The US President-elect has already proposed a global democracy summit where common challenges confronting the world will be discussed and it is expected that the US will seek the views of allies. 

UK, France, and Germany (E3), and Japan and India, are likely to be in favor of a different approach vis-à-vis Iran, given their economic and strategic interests.  

It is not necessary that Biden is likely to follow a policy identical to Obama’s given that global geopolitical dynamics in general and the situation in the Middle East have witnessed a significant shift. Yet a more flexible and pragmatic US approach towards Iran could prevent Tehran from veering further towards Beijing. It is also important for the US to give more space to its allies to strengthen economic linkages with Tehran. Joe Biden has numerous other challenges, and Iran’s President Hassan Rouhani too has a number of problems to cope with but there is a limited window for at least getting back to the dialogue table and reducing tensions.

You vote is your voice–but actions speak louder than words

On voting day, with everyone tweeting and yelling and spam-calling you to vote, I want to offer some perspective. Sure, ‘your vote is your voice,’ and those who skip the election will remain unheard by political leaders. Sure, these leaders probably determine much more of your life than we probably would like them to. And if you don’t vote, or ‘waste’ your vote on a third party or write in Kim Jong Un, you are excluded from the discussion of how these leaders control you.

But damn, if that is such a limited perspective. It’s like the voting booth has blinders that conceal what is truly meaningful. I’m not going to throw the traditional counter-arguments to ‘vote or die’ at you, though my favorites are Arrow’s Impossibility Theorem and South Park’s Douche and Turd episode. Instead, I just want to say, compared to how you conduct your life, shouting into the political winds is simply not that important.

The wisdom of the stoics resonates greatly with me on this. Seneca, a Roman philosopher, tutor, and businessman, had the following to say on actions, on knowledge, on trust, on fear, and on self-improvement:

  • Lay hold of today’s task, and you will not need to depend so much upon tomorrow’s. While we are postponing, life speeds by. Nothing is ours, except time. On Time
  • Each day acquire something that will fortify you against poverty, against death, indeed against other misfortunes as well; and after you have run over many thoughts, select one to be thoroughly digested that day. This is my own custom; from the many things which I have read, I claim some one part for myself. On Reading
  • If you consider any man a friend whom you do not trust as you trust yourself, you are mightily mistaken and you do not sufficiently understand what true friendship means. On Friendship
  • Reflect that any criminal or stranger may cut your throat; and, though he is not your master, every lowlife wields the power of life and death over you… What matter, therefore, how powerful he be whom you fear, when every one possesses the power which inspires your fear? On Death
  • I commend you and rejoice in the fact that you are persistent in your studies, and that, putting all else aside, you make it each day your endeavour to become a better man. I do not merely exhort you to keep at it; I actually beg you to do so. On the Philosopher’s Lifestyle

Seneca goes on, in this fifth letter, to repeat the stoic refrain of ‘change what you can, accept what you cannot.’ But he expands, reflecting that your mind is “disturbed by looking forward to the future. But the chief cause of [this disease] is that we do not adapt ourselves to the present, but send our thoughts a long way ahead. And so foresight, the noblest blessing of the human race, becomes perverted.”

Good leadership requires good foresight, but panic over futures out of our control pervert this foresight into madness. So, whether you think that Biden’s green promises will destroy the economy or Trump’s tweets will incite racial violence, your actions should be defined by what you can do to improve the world–and this is the only scale against which you should be judged.

So, set aside voting as a concern. Your voice will be drowned out, and then forgotten. But your actions could push humanity forward, in your own way, and if you fail in that endeavor, then no vote will save you from the self-knowledge of a wasted life. If you succeed, then you did the only thing that matters.

Election Day

You’ve seen me gripe about the inadequacy of the “Throw the Bums Out Theory of Governance” before. I could make the argument again, but Carlin’s more eloquent.

For the record, I did vote, but only for the sake of domestic harmony. I’m under no illusion that this is the year they’ll finally pick my preferred (least un-preferred) candidate. And I’m still going to complain, because a) causality is more complicated than works for the premise of a joke, b) I need a hobby and complaining doesn’t require special equipment, and c) I think complaining is a more valuable and useful form of civic duty than voting.

If you’re voting today, I hope it doesn’t suck to much. If you’re not, I hope you’ll use your saved time to actually make the world a better place.

A short non-political note

I have not been paying attention to the election news cycle. I have dropped out of that system. I am lucky that I was born in the United States. I marvel at the underpinnings of the American constitutional order (an internationalist order). I understand that self-government and elections go hand-in-hand (if only we were all enlightened anarchists).

But I don’t pay attention to the horse race for the presidency. It makes a mockery of all the good things the republic stands for.

I have been taking advantage of the Covid pseudo-lockdown. (Thanks to Nick for the Zoom lesson in opportunity costs.) I wrote one scholarly essay and six short stories. I submitted them to journals. The scholarly essay was accepted for publication in The Independent Review after going through an unusually thorough peer review process. The short stories were all rejected. I am disheartened because I have been trying (slowly) to leave behind scholarship in favor of literary pursuits. I cannot practice my writing craft because the scholarly article (ungated rough draft here) is also the focus of a Special Issue in an open source academic journal (which also happens to be one of my favorite journals: Cosmos + Taxis).

So, I have another 16 months of challenging scholarly work ahead of me. I love this blog. It’s been good to me. I don’t know if the literary journals rejected me because of my style or my substance. I felt like I was tackling difficult topics, but I also know my writing style is a bit old school. I think maybe the rejections were a combination of old school style and old school substance, both of which are not exactly what literary journals are looking for these days.