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    Peter Thiel’s Bitcoin Paranoia

    Silicon Valley billionaire Peter Thiel finds himself in a confusing moral quandary as he struggles to weigh the merits of his nerdish belief in cryptocurrency against his patriotic paranoia focused on China’s economic rivalry with the United States. Participating in “a virtual event held for members of the Richard Nixon Foundation,” Thiel, while reaffirming his position as a “pro-Bitcoin maximalist,” felt compelled to call his faith into doubt due to his concern that China may use bitcoin to challenge US financial supremacy.

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    According to Yahoo’s Tim O’Donnell, Thiel “thinks Beijing may view Bitcoin as a tool that could chip away at the dollar’s might.” He directly quotes Thiel who wonders whether “Bitcoin should also be thought [of] in part as a Chinese financial weapon against the U.S.”

    Today’s Daily Devil’s Dictionary definition:

    Financial weapon:

    The role any significant amount of money in any one person’s, company’s or nation’s hand is expected to play to assert power and obtain undue advantages in today’s competitive capitalism

    Contextual Note

    Thiel may be stating the obvious. Money is power and concentrations of money amount to concentrated power. The point of power is to influence, intimidate or conquer, depending on how concentrated the power may be. It is ironically appropriate that the event at which Thiel spoke was organized by the Nixon Foundation. Richard Nixon was known for putting the quest for power above any other consideration. He was also known for opening the relationship with China, which many Republicans today believe led to a pattern of behavior that allowed China to eventually emerge as a threat far more menacing than the Soviet Union during the Cold War. Nixon was also the president who destroyed the Bretton Woods system that set the financial rules ensuring stable international relations in the wake of World War II.

    Thiel’s thoughts are both transparently imperialistic. They follow Donald Trump’s “America First” logic, while at the same time revealing Thiel’s uncertainty about how to frame it in the context of Bitcoin. His version of “America First” has less to do with the Trumpian idea that America should worry first about its own internal matters and later deal with the world than with the idea of the neocon conviction that the US must impose itself as the unique hegemon in the global economy. In Thiel’s mind, this sits uncomfortably alongside his made-in-Silicon Valley belief that cryptocurrencies represent the trend toward something that might be called “financial democracy.”

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    According to O’Donnell, Thiel “explained that China isn’t fond of the fact that the U.S. dollar is the world’s major reserve currency because it gives the U.S. global economic ‘leverage,’ and he thinks Beijing may view Bitcoin as a tool that could chip away at the dollar’s might.” O’Donnell is guilty of somewhat hypocritical understatement when he claims that it is all about China not being “fond of” the dollar’s status as the world’s major reserve currency. Who besides the US would be “fond of” such a thing? Those are O’Donnell’s words, not Thiel’s. As for the idea that Bitcoin might chip away at the dollar’s might, Thiel avoids making that specific point and prefers a more vaguely paranoid reading of events as he suggests a kind of plot in which China may be using Bitcoin to undermine US hegemony.

    Thiel’s phrasing places him clearly in the realm of what might be called diplomatic paranoia. He begins with a statement of speculative uncertainty as he expresses his concern with China’s turning Bitcoin into a financial weapon. Here are his exact words: “I do wonder whether at this point Bitcoin should also be thought in part of as a Chinese financial weapon against the US where it threatens fiat money but it especially threatens the US dollar and China wants to do things to weaken it.”

    “I do wonder whether at this point Bitcoin should also be thought … of” expresses a deviously framed insinuation of evil intentions by a Fu Manchu version of the Chinese government. This is a popular trope among Republicans and even Democrats today, who vie with each other to designate China as an enemy rather than a rival. But Thiel’s admission that it’s really about “wondering” tells us that we are closer to Alice’s Wonderland than to the CIA book of facts.

    Thiel then adds the temporal detail of “at this point,” which introduces a surreal notion of time that has more to do with a fictional dramatic structure than the reality of contemporary history. It is tantamount to saying: This is where the plot thickens. And his suggestion of how it “should be thought of,” besides being manipulative, indicates that we are invited into accepting the plot of a paranoid fantasy made up of thought rather than reality.

    He then explains what he means by “a Chinese financial weapon against the US.” Though he claims to be a believer in the unfettered freedom of cryptocurrency, he accuses it of violating what might be called “the rule of law” insofar as “it threatens fiat money,” which is the privilege of every nation on earth. But that worry has little merit compared to the fact it “especially threatens the US dollar,” which — it goes without saying — China wants to weaken.

    Thiel knows where the money is. It lies in the primacy of the US dollar. That is why the US has 800 military bases across the globe.

    Historical Note

    Since the dismantling in 1971 of the Bretton Woods system by US President Richard Nixon — in whose name the Richard Nixon Foundation was created — the dollar has functioned as the ultimate and most devastating financial weapon in history wielded by a single government. The Bretton Woods agreement, signed in 1944 by 44 countries, allowed the dollar to play a controlled role as the world’s reserve currency thanks to its convertibility with gold. When the growing instability of the dollar, due in part to the Vietnam War, threatened the order established by Bretton Woods, Nixon unilaterally broke the link with gold. Instantaneously, the US was free to weaponize the dollar for any purpose it judged to be in its interest.

    Nixon produced one of the greatest faits accomplis in history. As with many successful unnoticed revolutions, Nixon’s administration presented the uncoupling of the dollar and gold as a temporary measure, the response to a momentary crisis. It took two years for the world to notice that Bretton Woods had definitely collapsed. The era of floating currencies began. Money could finally be seen for what it is: a shared imaginary repository of value that could eventually become the focus of what Yuval Noah Harari has called the religion of capitalism in his book, “Money.”

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    For many people, Bitcoin has become a kind of alternative religion, or rather a vociferous radical sect on the fringes of the global religion of neoliberal capitalism. Bitcoin as a concept highlights the lesson brought home by the collapse of Bretton Woods: that the value of money people exchange, despite Milton Friedman’s objections, is literally based on nothing and therefore meaningless. That also means — though the faithful are not ready to admit it — that its value is infinitely manipulable. It appears to derive from economic reality but is anchored in little more than what a small group of people with excess cash may think of it on a given day. Elon Musk ostentatiously manipulated its value when he announced that Tesla had purchased $1.5 billion worth of bitcoin. 

    For anyone with billions to throw around, it’s an easy game to play. The manipulation by Musk, Peter Thiel’s former associate as co-founder of PayPal, doesn’t worry Thiel. Wondering about whether China might, in some imaginary scenario, use Bitcoin for nefarious purposes does trouble him.

    Thiel represents our civilization’s new ruling elite. It consists of individuals who sit between two hyperreal worlds, one dominated by the mystique that surrounds means of payment (cash) and the control of financial flows, complemented by another that seeks political control and the hegemony required to enforce the now imaginary “civilized” rules governing financial flow. Since the demise of Bretton Woods, those rules have lost all meaning. That means the rules themselves can be weaponized. It’s a monopoly that Thiel, his fellow members of the Nixon Foundation and most people in Washington insist on reserving for the US.

    *[In the age of Oscar Wilde and Mark Twain, another American wit, the journalist Ambrose Bierce, produced a series of satirical definitions of commonly used terms, throwing light on their hidden meanings in real discourse. Bierce eventually collected and published them as a book, The Devil’s Dictionary, in 1911. We have shamelessly appropriated his title in the interest of continuing his wholesome pedagogical effort to enlighten generations of readers of the news. Read more of The Daily Devil’s Dictionary on Fair Observer.]

    The views expressed in this article are the author’s own and do not necessarily reflect Fair Observer’s editorial policy. More

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    Science’s Problem With Money, Media and Politics

    In a fascinating interview with The Guardian’s Andrew Anthony, media-friendly physicist Michio Kaku reveals more than he may have intended about both science and politics when he explains how political funding of the science of fundamental research takes place today. The champion of string theory complains about the difficulty scientists have as they set out to solve the biggest theoretical questions about the origin and structure of the universe due to the incomprehension of prominent politicians. He describes the fate of a plan 30 years ago to build an installation even “bigger than the Large Hadron Collider,” currently the world’s most powerful particle accelerator, which the European Organization for Nuclear Research (CERN) launched in 2008.

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    Kaku recounts what he refers to as “a big shock in the 1990s when we physicists proposed the super collider.” The scientists saw it as a chance for the United States to take a commanding lead in the realm of experimental particle physics. With the Cold War over, astute politicians might have viewed it as an important element of what Joseph Nye calls “soft power,” an essential element of diplomacy and influence for any nation intending to exercise global leadership. The richest country in the history of the world, with no ideological or economic rival to challenge its hegemony, could certainly have afforded to support the advance of theoretical physics.

    The collider project was planned to be built in Dallas, Texas. All it required was funding by the federal government. Kaku explained how the scientists’ hopes were dashed: “What went wrong? On one of the last day[s] of hearings, a congressman asked: ‘Will we find God with your machine? If so I will vote for it.’ The poor physicist who had to answer that question didn’t know what to say.” Congress rejected the project, opening the opportunity for Europe to assume leadership in the exploration of particle physics.

    Kaku regrets that glorious period called the Cold War, when scientists had a simple solution to obtain funding for any project requiring extravagant spending. “During the 60s, all we had to do was go to Congress and say one word: Russia. Then Congress would say two words: How much? Those days are gone.”

    Today’s Daily Devil’s Dictionary definition:

    How much?

    A common question relating to the evaluation of quantity that our modern capitalist society tends to apply exclusively to amounts of money

    Contextual Note

    The usual answer to the question, “How much?” is now expressed as an amount of money. Money has also become the unique measure of quality. We live in a “how much” world. Everything has a price, which we need to know because price is the sole indicator of worth.

    Finding God is one of the rare activities that the congressman in question apparently deemed worthy of being thought of as “priceless.” After finding the Americas, Europeans eventually put the resources of an entire continent in their hands to exploit in any way they deemed profitable, from extracting gold and silver to founding the Federal Reserve and launching McDonald’s.

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    If today’s Americans financed a collider capable of finding God, that would eventually put the divinity in their hands. At the very least, it would help to validate the claim — repeated by American schoolchildren every day as they  recite the pledge of allegiance — that the US is “one nation under God.” In the event that the projected super collider did find the Godhead, Congress might once again revise the wording of the pledge, this time to one nation alongside God.

    Kaku sums up the lamentable plight of the entire scientific community. “We have to sing for our supper,” he says. And as the well-known proverb explains, “He who pays the piper calls the tune.” Kaku had a symphony in mind when his colleagues sought funding for the super collider in Dallas. Politicians will always prefer something with a lilt, like “Home on the Range.” Science is justified when it creates economic activity resulting in the production of both merchandise and jobs. It has no (monetary) value when it simply seeks to reveal the mysteries of the universe.

    Kaku imagines how scientists schooled in rhetoric could have responded to the congressman who was ready to fund a glimpse into the face of God: “We should have said, this is a Genesis machine that will create the conditions of the greatest invention of all time — the universe. Unfortunately, we said Higgs boson. And people said, $10bn for another subatomic particle?” No shopping mall in the 1990s — not even Amazon today — can foresee making a profit from selling Higgs bosons. However, if a boson could be presented as a non-fungible token (NFT), that might be worth considering.

    What does this tell us about the status of science in the post-industrial society? If scientists spend their time singing for their supper, much of the science that emerges may reflect the taste of those who call the tune. Even theoretical scientists may allow themselves to be distracted by the interests of those who pay for their research and their meals. 

    Kaku cites the important role played by politicians, who — as everyone knows — spend 50% of their time, if not more, fundraising, soliciting cash from people with serious economic interests that may be threatened by certain scientific truths. Add the two sources of pressure together and there may be cause for concern about the fate of scientific truth in our popular culture.

    But it doesn’t stop there. There is a third factor of distortion: the media. Scientific stories concerning everything from dietary advice to solving the climate crisis or understanding what preceded the Big Bang make for popular reading and viewing. Commercial media pursue anything that draws people’s attention, including crackpot scientific theories or sensationalistic interpretations of authentic scientific discoveries.

    A breaking story originating with the highly suspect Daily Mail but dutifully relayed by the supposedly “respectable” web portal and news aggregator MSN is a case in point. It informs its readers about former CIA Director James Woolsey’s “‘openness’ to the possibility of alien life.” The story is related to the promotion of Woolsey’s new book in which the head of an agency dedicated — as everyone should know by now — to lying makes the oh-so-credible claim that “Lee Harvey Oswald killed JFK on the orders of the Kremlin.”

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    The Daily Mail, MSN and Woolsey himself have collaborated to offer this wonderful insight into the connection between politics and cosmology. It’s the kind of “science” the public loves to access. They have also collaborated to make sure that Russia is part of the story.

    In the interview with The Guardian, Kaku evokes both the problem related to popularizing science, with the risk of being misunderstood, and his own “openness” to the existence of alien life, which is based on his understanding of the scope and complexity of the universe and his knowledge of the laws of physics rather than the anecdotal reports of strange phenomena cited by Woolsey. Kaku knows that, as a public figure present in the media, his discourse consists of playing a delicate game in an economic and political system whose rules he understands, but which he must not violate.

    Historical Note

    All this highlights the fact that US political culture has created a curious relationship in its dominant ideology between science, God and a nation deemed “exceptional.” It is a relationship that, as Michio Kaku reminds us, somehow depended on the perception of a threat called Russia to bring things comfortably together. He evokes the magical period where the universally imposed paranoia of communist Russia (the Soviet Union) made it possible for all Americans to agree on sharing a common religion defined in opposition to Marxist atheism. All that was required was to feel that we were all “under God.” This idea suggested to school children reciting the pledge that the American God would look after all of them.

    The problem with this new theology is that the idea of God in his heaven hovering over the territory of the United States depended for its coherence on the existence in people’s minds of a hell represented by Russia. With the end of the Cold War in 1991, Russia was no longer the enemy. Liberated from communism, it had become a laboratory for American free market ideology. That was until Satan reappeared in the person of Vladimir Putin and Russiagate emerged to restore order.

    *[In the age of Oscar Wilde and Mark Twain, another American wit, the journalist Ambrose Bierce, produced a series of satirical definitions of commonly used terms, throwing light on their hidden meanings in real discourse. Bierce eventually collected and published them as a book, The Devil’s Dictionary, in 1911. We have shamelessly appropriated his title in the interest of continuing his wholesome pedagogical effort to enlighten generations of readers of the news. Read more of The Daily Devil’s Dictionary on Fair Observer.]

    The views expressed in this article are the author’s own and do not necessarily reflect Fair Observer’s editorial policy. More

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    The Loneliness of Matt Gaetz

    Representative Matt Gaetz, a brash Trump loyalist, was apparently proud of his reputation as “the most despicable member of Congress.” He presented it as a badge of honor that his electorate would appreciate thanks to the low esteem in which the general population holds Congress. But now with documented reasons for finding him despicable, not just in the eyes of fellow legislators, but of the law itself, his pride is likely to be tempered.

    The Gaetz scandal combines several key features of the best hyperreal political narratives prized by the media. Gaetz’s rare talent for obsessively associating a taste for power, money and alleged underage sex has catapulted him into the equivalent of a political version of Jeffrey Epstein, though with fewer friends among the wealthy and famous.

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    Back in 2016, many people assumed that Donald Trump’s brashness, impudence, narcissism and specific sins revolving around money and sex would turn the Republican Party against him. The party stalwarts not only despised Trump for his personality but saw him as a threat to the moral integrity of the GOP. To everyone’s surprise, Trump’s ability to draw crowds and votes endowed him with an authority his character, political ignorance and insufferable manners seemed to preclude. The old guard did its damnedest to marginalize him, but he ended up marginalizing them when he waltzed through the presidential primaries and then defeated Hillary Clinton in the November election.

    Gaetz was undoubtedly inspired by Trump’s example. Alas, he lacked the presence, charisma and showmanship to do what Trump does best: humiliate his opponents and critics to the point of earning their grudging respect. As a result, Gaetz finds himself in no man’s land. The Guardian describes his plight in these terms: “The Florida Republican congressman Matt Gaetz appears increasingly politically isolated amid a spiralling scandal over a federal sex-trafficking investigation.”

    Giovanni Russonello at The New York Times underlines the point, calling Gaetz “increasingly isolated.” He cites the fact that few “Republicans have spoken up in support of him, and today his own communications director, Luke Ball, resigned.”

    Today’s Daily Devil’s Dictionary definition:

    Isolated:

    Excluded from the company of those who share the same interests, profit from the same situation, adhere to the same general values and who, in normal times, have no difficulty accepting and even encouraging egregiously antisocial behavior until such time as that behavior becomes known to the public

    Contextual Note

    Gaetz’s colleagues in Congress were well aware of his proclivities. Russonello reports that “Gaetz had a history of showing off nude photos and videos of women that he said he’d slept with to colleagues on the House floor.” In all likelihood, they suspected that he would be skillful enough to avoid crossing the red line that lies between ostentatiously flaunting his sexual prowess and, according to reports, engaging in sex trafficking. But ordinary political prudence wasn’t among Gaetz’s skills. He “had a reputation among colleagues for aberrant behavior, including a fondness for illicit drugs and younger women — and members of his own party had learned to keep their distance.”

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    What the idea of keeping their distance entails is unclear. Is it embarrassed tolerance or a form of envious complicity? Does it mean they politely giggled and applauded him for his prowess when he showed them pornographic videos? Or did they shied away from contact with him for fear of being contaminated by his obsessions?

    All politicians are attracted to power, but most are just happy to be part of the power structure. In the quest for power, those who participate in the game as members of the club without seeking to exercise real power themselves learn to accept and tolerate the obvious foibles of those whose assertiveness establishes the kind of reputation Gaetz had as “a rising star” in his party. Of course, the notion of rising star means little more than showing a capacity to generate earned media.

    In a curious parallel, a New York Times article on Noah Green, the suspect behind the recent attack on police on Capitol Hill, recounts that “by late March, after a bruising pandemic year that friends and family said left him isolated and mentally unmoored, Green’s life appeared increasingly to revolve around the Nation of Islam and its leader Louis Farrakhan, who has repeatedly promoted anti-Semitism.” The idea of being isolated has become inseparable from the idea of being “mentally unmoored.”

    During the 20th century, the US created the world’s first national culture focused almost exclusively on the idea of the atomistic individual self. It traces its origins back to Ralph Waldo Emerson’s moral concept of self-reliance. It stresses belief in the authenticity of a pure ego whose vocation is to assert itself in a competitive world. This became the key to developing the consumer society. It implied that each of us projects a unique self into the world through the choices we make. Some are consumer choices, items we buy. Some are identity choices, the characteristics of personality we want people to notice. In the end, all our choices coalesce to assert an individual presence that seeks to secure power and territory in competition with others. This self thrives with the permanent risk of becoming isolated by its uniqueness.

    With the ever-increasing role of the media, the trend of the self applied to politics has produced personalities like Trump and Gaetz and, in a different vein, Bill Clinton and Barack Obama. They all believe they are authorized to do anything that fits with the image they have created for themselves as wielders of power, from approving kill lists, like Obama, to variations on sexual predation. Their individual ambitions may be very different and the acts they engage in highly contrasted. The most disciplined avoid the obvious traits of narcissism. Others, like Trump, cultivate it. They all seek specific ways of projecting to the public the reality of their personal power.

    Historical Note

    History tells us that banal sexual indiscretions and even extravagant high jinks among political leaders — from emperors and kings to presidents and prime ministers — are the norm rather than the exception. This is true even in nations that call themselves a “city on the hill” and proclaim their adherence to puritanical values. Some are more inclined than others to put their proclivities on display. Donald Trump demonstrated that for a significant cross-section of the US population, the fantasized ideal of the dominant, conquering male complemented by the symbolism of the submissive female has remained a stable fixture of the culture. Its persistence across the culture helps to explain the extreme virulence of some feminist voices, who see all males as an enemy to their gender.

    Contrary to what extreme feminists claim, the problem is not men in general or even individuals — like Jeffrey Epstein or Matt Gaetz,  or even John F. Kennedy and Bill Clinton — who have bought into the ideology of competitive sexual conquest. They are themselves products of a culture that equates power with success in a struggle for domination. The distinction between political and social power or influence, on one hand, and an archaic sense of sexual privilege, on the other, easily breaks down in a culture that requires the self to focus at all times on competitive success. Money, property and sexual conquest appear as complementary signs of the attainment of one’s ultimate goal of self-actualization.

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    Gaetz obviously failed to understand the subtler rules of the symbolic game that managing the attributes of power requires. The pundits are now left wondering whether Gaetz can save his career, though nobody really seems to care one way or the other. Gaetz has become an object of ridicule because he sought the attributes of power before achieving power and because he failed to cultivate friends in power. But like so many people who have managed to push their fabricated identities into the willing hands of the ever-eager media, he believes he belongs among the powerful. 

    Gaetz is of course not an isolated case. But his isolation — unlike that of, say, New York Governor Andrew Cuomo, who is undergoing a similar drama — is more extreme since he foolishly focused his project on reportedly buying underage sex partners when he should have been working on buying the friendship that Cuomo and even Epstein knew how to purchase.

    *[In the age of Oscar Wilde and Mark Twain, another American wit, the journalist Ambrose Bierce, produced a series of satirical definitions of commonly used terms, throwing light on their hidden meanings in real discourse. Bierce eventually collected and published them as a book, The Devil’s Dictionary, in 1911. We have shamelessly appropriated his title in the interest of continuing his wholesome pedagogical effort to enlighten generations of readers of the news. Read more of The Daily Devil’s Dictionary on Fair Observer.]

    The views expressed in this article are the author’s own and do not necessarily reflect Fair Observer’s editorial policy. More

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    Fair Observer Scoop: Putin Engineered the Blockage of the Suez Canal

    MSNBC’s star journalist Rachel Maddow was ready to break the news but hesitated when certain insiders worried that, if the accusation was not borne out by verifiable facts, the reaction might further damage the reputation of a news organization whose ratings have been plummeting for the past two months. This lapse has enabled Fair Observer to provide the scoop that Maddow was on the verge of making before being pulled back by MSNBC’s marketing department. Maddow did mention a rumor that Russia could have been involved, warning that if this could be confirmed it would be seen as “a new variation in Putin’s playbook.” But with no substantial evidence to present or names to cite, she went on to focus on the lurid details of Representative Matt Gaetz’s sex scandal.

    Credible witnesses with access to the Kremlin have revealed to The Daily Devil’s Dictionary that the sandstorm credited with disturbing the navigation of the Ever Given — the Japanese container ship that ended up blocking the Suez Canal — was the result of a covert operation by Russia’s weather modification team. Russian President Vladimir Putin’s aim was to damage the credibility of traditional trade routes, sowing doubt about the West’s ability to manage global commerce as the US prepares to disengage militarily from the Middle East. The message is clear. Russia is ready to mount similar operations in Syria, Iraq and even Egypt and Libya to further weaken the waning US influence in the region.

    Mohammed bin Salman’s Neom: A Case of Giga-Narcissism

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    But there is another dimension of this geopolitical struggle whose implications will stretch out over decades. Thanks to global warming, which the Russians officially blame the US for encouraging, Putin has been nourishing his plan to turn the increasingly navigable Arctic Ocean that stretches across Russia’s northern coastline into the obvious choice for most East-West trade. Thanks to the melting ice, Russia will soon be in a position to monitor and control as much as 60% of intercontinental trade in the decade to come.

    Fair Observer’s scoop resulted from a cryptic remark spoken by a Russian official and overheard by CNN’s correspondent at a lunch table at the Kremlin. One of Putin’s closest aides, Nikolai Stavrogin, sat down with the intention of explaining to New York Times reporter Shawn McDermott a major shift in geopolitical history that would soon become apparent. The past, he claimed, was being undone in front of our very eyes. When asked for a detailed explanation, Stavrogin leaned back in his chair and slowly articulated this enigmatic thought: “Ice melts and ships float. It is ever a given that when water evaporates stillness reigns.”

    Today’s Daily Devil’s Dictionary definition:

    Evaporate:

    A verb used alternatively to describe the transformation of water under the effect of heat and the fate of many news stories left in the hands of journalists who refuse to think below the surface

    Contextual Note

    CNN reporter Elizabeth Prynne, who was just near enough to overhear Stavrogin utter his enigmatic statement, noted the words “ever” and “given” in his arcane message and suspected the remark might have a deeper meaning. Convinced that it needed to be followed up, she asked her colleague at The NY Times for some background. The Times reporter told her that Stavrogin’s observation concerned climate change, a purely scientific matter. He had other matters to deal with and would refer this one to his scientific colleagues, always eager to speculate about the effects of global warming.

    Prynne began asking around what Stavrogin’s remark might mean. She mentioned it to a friend who happens to be a Fair Observer contributor, who then informed The Daily Devil’s Dictionary. We immediately understood that this did indeed refer to the phenomenon of global warming. But, as Prynne suspected, it concerned the geopolitical impact of climate change. Thanks to the ever more apparent annual Arctic thaw that has opened up previously inaccessible trade routes, Russia is certain to obtain a growing strategic advantage. 

    Thanks to another of our relations, we were then able to reach Stavrogin himself who, without offering any new details, confirmed that his remarks concerned an impending revolution in maritime commerce. He also dropped the telling hint that the Kremlin’s weather experts had the knowledge and expertise to cause the stranding of an oversized ship in the Suez Canal. He refused to confirm that the operation was actually carried out by the Russians, but his boast that they were capable of such an operation left no doubt in our minds.

    Historical Note

    Fair Observer is not in the business of seeking or publishing scoops. But when one lands in our lap, we will not hesitate to disseminate it, especially at this crucial moment of history on April 1, 2021. The Daily Devil’s Dictionary published one of the first warnings concerning the suspicious disappearance of journalist Jamal Khashoggi in early October 2018. We pointed to the nature and the probable author of the crime well before the mainstream news began reporting Saudi Crown Prince Mohammed bin Salman’s possible involvement in Khashoggi’s disappearance.

    Embed from Getty Images

    We have now established the fact that Vladimir Putin effectively intervened in beaching the Ever Given, an incident that for a full week dramatically disturbed global trade by blocking the Suez Canal. This is a major story that neither MSNBC nor CNN have shown the temerity to reveal. Proud of our scoop, we find ourselves in the embarrassing position of having to backtrack on our own recent and repeated claims that The New York Times has been pathologically obsessed with blaming Russia for every crime and misdemeanor on the international stage, or even in domestic politics in the US. We hope the Gray Lady will accept our belated apologies.

    This incident that came to light through such indirect means tells us that, contrary to our own claims, The Times’ executive editor, Dean Baquet, was in the end justified in pursuing beyond reason the paper’s campaign against Russia. After what has now become clear about Putin’s intervention in the Suez Canal, what rational person could possibly doubt what The Times has been claiming for the past five years — that Putin colluded with Donald Trump and personally played the decisive role by tampering in the 2016 US presidential election to ensure the defeat of Hillary Clinton?

    It was barely a week ago that the sandstorm occurred leading to the blockage of the Suez Canal. Some will say that so soon after the event, with the facts still difficult to pin down, that this first day of April is not the appropriate time to claim the truth of such allegations. But we proudly proclaim that April 1 is a far more appropriate moment than the other 364 days of the years when MSNBC, The New York Times, CNN, The Washington Post and others have consistently pushed a similar story, and that for more than five years.

    *[Humorists have always been attracted to the temptation of reporting patently fake news on April Fools’ Day. In our turn, we have succumbed. Our apologies to MSNBC, CNN and The New York Times for doing what they would never dare to do: print news that isn’t true. As Jonathan Swift might describe it, they are the Houyhnhnms, who “cannot say a thing which is not” and we are the Yahoos, whom he describes as “restive and indocible, mischievous and malicious.” (Disclaimer: we have no legal connection to Yahoo!) Read more of The Daily Devil’s Dictionary on Fair Observer.]

    The views expressed in this article are the author’s own and do not necessarily reflect Fair Observer’s editorial policy. More

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    Mohammed bin Salman’s Neom: A Case of Giga-Narcissism

    Despite rumors to the contrary due to the somewhat soiled reputation of a leader better known for, according to US intelligence, commanding the murder of a Washington Post journalist than his contribution to the future of humankind, Business Insider reassuringly reports that “work is pressing ahead at Crown Prince Mohammed bin Salman‘s prized gigaprojects, a key pillar of his dream of modernizing Saudi Arabia.”

    The young man known as MBS has a confirmed habit of spending vast amounts of money on anything that may redound to his personal glory. And nothing redounds better than immensely costly, futuristic public projects that defy description. His discreetly managed construction of his own Chateau Louis XIV in Louveciennes, just a few kilometers from Versailles itself, got very little publicity, due undoubtedly to the fact that it was just an example of narcissistic indulgence.

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    The New York Times has referred to it as “the most expensive house in the world,” though there appear to be other candidates, such as Antilia in Mumbai, whose cost of construction estimated at between $1 and $2 billion dwarfs the $300 million that Mohammed bin Salman’s Chateau is worth. That nevertheless qualifies it for the title of the most elegant expensive house in the world and possibly the most respectful of its environment, nestled discreetly within the charming forest of Louveciennes.

    For all its splendor and expense, Chateau Louis XIV doesn’t is no gigaproject. The Times calls it a “bauble” for MBS. It has nothing to do with “modernizing Saudi Arabia” since it doesn’t even modernize France. The real future jewel in the crown prince’s crown is a delirious vision of the future called Neom.

    Today’s Daily Devil’s Dictionary definition:

    Gigaproject:

    Any absurd, unrealistic project planned by an individual with access to gigabillions of dollars and devoid of human values

    Contextual Note

    Business Insider gives its readers an idea of what MBS wants Neom to become. It is not just a hypermodern resort for billionaires, like Dubai, but a bold, forward-looking gigaproject that will generously advance the interests of science, the environment and especially human beings addicted to sci-fi literature and film and willing to pay to see and experience technoscientific fantasies materialized in front of their very eyes. “The city, named Neom, would be carbon neutral and have artificial rain, a fake moon, flying taxis, and robotic maids, according to early blueprints drawn up by consultants. It has since branded itself as a future hub for pioneering clean energy development,” Bill Bostock writes.

    Embed from Getty Images

    It sounds as if the consultants were asked to physically combine Las Vegas, Universal Studios, Disneyland and Dubai and shape them into a doughy ball that MBS could then roll out across a stretch of Arabian Desert. Business Insider explains that Mohammed bin Salman’s aim is to “inspire awe,” as if the daring murder and dismembering of journalist Jamal Khashoggi hadn’t already achieved that effect.

    But there is an even more serious objective. MBS wants Neom and two other gigaprojects to “substantiate his self-styled image as a reformer, while adding new strings to Saudi Arabia’s economic bow.” No other reformer of the past — from Martin Luther to Martin Luther King — has had the temerity and deep sense of empathy toward suffering humanity capable of guiding them toward the coveted goal of creating a society with artificial rain and a fake moon.

    In an earlier article, Business Insider describes Neom as “the world’s first ‘cognitive city.’ It is designed to “anticipate residents’ needs,” which it does by harvesting “an unprecedented amount of data from future residents.” It follows the Google model, offering something deemed valuable for free to gain control of all the forces underlying its consumers’ behavior. Both Google and MBS deploy a strategy that consists of confusing the random, artificially stimulated desires of their customers with needs.

    At least the Chinese model of social credits, denounced throughout the West as a totalitarian tool, derives from the value of “harmony” at the core of Chinese culture. Technology now enables every government in the world to encourage not just spying on its citizens, but monitoring every individual’s behavior. Democratic regimes do it one way. Despotic regimes do it another way. What varies is the type of hypocrisy used to justify it.

    Historical Note

    In recent history, the idea of reform, especially in the context of democracy, referred to measures that served to reduce injustice and promote equality. As a supremely autocratic monarchy, Saudi Arabia is the opposite of a democracy. When commentators such as Thomas Friedman detect the utilization of despotic powers to promote conformity with the global economic system imposed by the United States on the rest of the world, they call those who initiate such processes reformers. For Friedman, the world loses its asperities and becomes “flat” — in his reading, fair and just as well as economically dynamic — whenever money and monopoly-orientated technological innovation are brought together and stimulated by visionary political leadership. The symbiosis of Wall Street and Silicon Valley sums up Friedman’s ideal. Mohammed bin Salman encapsulated that ideal.

    The political stakes are undeniable. Business Insider cites the opinion of a former US diplomat who explained that the Saudi crown prince’s political future is “to a considerable extent tied to the success of” these gigaprojects. In today’s economy, commercial success, especially when technology is involved, is the key to pardoning crimes that can be henceforth reclassified as unfortunate episodes of history that deserve to be erased from our collective memory.

    The challenge nevertheless remains of ensuring such projects are successful. Money alone won’t do the trick. Overly ambitious projects, however well-funded, are risky, just as dismembering a journalist in an Istanbul consulate may prove risky. If the project doesn’t live up to its ambitions, danger lurks. The higher and more unrealistic the ambition, the greater the chances of humiliating failure. And the more enticing the promise — in this case, of accelerating scientific progress — the more disappointing even partial success will prove to be. With the right engineering and adequate investment, as a theoretical proposition, Neom may today seem technically feasible — just like Elon Musk’s idea of thriving colonies on Mars — but the willingness of humans to live in such artificial worlds and their ability to adapt to radically different living conditions may fail to meet the designers’ optimistic expectations.

    If Dubai has proved successful, it is because — despite its pretensions of grandeur — its hyperreality has never crossed the invisible line of credibility. It has simply taken and exaggerated every notable trend in the consumer society. Its unoriginal architecture imitates existing models. How many buildings in Dubai look like cheap imitations of New York’s Chrysler building or the British Parliament? Hyperreality is about imitation and illusion, not innovation. Neom appears to want to merge both and to be honored for advancing human science.

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    Andrew Hudson-Smith, a professor of digital urban systems at University College London, believes Neom’s success is possible. “People will buy into this as long as they’re given an incentive for it,” he told Business Insider. “That may be better healthcare, which is what Neom has said.” A Saudi analyst offered this optimistic take: “People will value the convenience and the associated elimination of bureaucracy … over sharing their digital data that many assume is already in the public domain given the technology that they use.” It’s the Google-Facebook principle.

    This thinking is consistent with the ingrained ideology of the consumer society. Offer people something new that seems to solve a problem or offer a new convenience and they will readily accept the associated constraints, so long as those constraints don’t become too visible. But there’s a significant flaw in the reasoning. Consumer society’s success in the 20th century rested on the idea that it was about limitless choice. Neom and Musk’s Mars colonies neglect the fact that choice implies the ability to change one’s choice once the consumer discovers the drawbacks. The worst thing that can happen to consumers is to feel they have become the prisoner of their choices.

    Business Insider claims the “experts are excited about Neom” before adding “the caveat that smart cities rarely resemble their original blueprints.” The experts have the luxury of simply drawing up new blueprints. Those who have committed to living there may feel locked in by circumstances or by their sense of shame at having made the wrong consumer choice.

    *[In the age of Oscar Wilde and Mark Twain, another American wit, the journalist Ambrose Bierce, produced a series of satirical definitions of commonly used terms, throwing light on their hidden meanings in real discourse. Bierce eventually collected and published them as a book, The Devil’s Dictionary, in 1911. We have shamelessly appropriated his title in the interest of continuing his wholesome pedagogical effort to enlighten generations of readers of the news. Read more of The Daily Devil’s Dictionary on Fair Observer.]

    The views expressed in this article are the author’s own and do not necessarily reflect Fair Observer’s editorial policy. More

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    Macron’s Campaign to Reveal France’s Historical Sins

    One of the worst humanitarian disasters of the past 30 years took place in 1994 in Rwanda. Approximately 800,000 people died in a genocidal campaign led by the Hutu majority against the Tutsi minority. The rampage began after Hutu President Juvenal Habyarimana’s plane was shot down. The Hutus immediately blamed the Tutsis and initiated a “well-organized campaign of slaughter” that lasted several months. A new French report on the Rwandan genocide has revealed some uglier truths about the role played by Western powers — particularly France.

    Since his election, French President Emmanuel Macron has demonstrated what some French patriots feel is a morbid curiosity about the history of France’s relations with the African continent. In the first three months of 2021, two reports by French historians tasked by Macron to tell the truth have been released. The first concerns France’s role in the Algerian War of Independence between 1954 and 1962, and the second, the Rwandan genocide.

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    Le Monde describes the 1,200-page Rwandan report as “solid, established by independent researchers and founded on newly opened archives.” Shortly after taking office in 2017, Macron asked historian Vincent Duclert to elucidate France’s role in the Rwandan genocide. Al Jazeera describes the report as criticizing “the French authorities under [Francois] Mitterrand for adopting a ‘binary view’ that set Habyarimana as a ‘Hutu ally’ against an ‘enemy’ of Tutsi forces backed by Uganda, and then offering military intervention only ‘belatedly’ when it was too late to halt the genocide.”

    Today’s Daily Devil’s Dictionary definition:

    Binary view:

    A prevalent mindset among leaders responsible for foreign policy in powerful nations, whose tendency to reduce every problem to a contest between two diametrically opposed points of view permits them to justify the most cynical and cruelly destructive policies

    Contextual Note

    In the aftermath of the genocide, analysts speculated about whom to blame, not only concerning the genocide itself but also the failure to prevent it from spinning out of control. As the leader of the nation whose role as “policeman of the world” became consolidated after the fall of the Soviet Union, US President Bill Clinton exhibited an apparent “indifference” to tribal slaughter in Africa. It included deliberate “efforts to constrain U.N. peacekeeping.” Canadian General Romeo Dallaire accused Clinton of establishing “a policy that he did not want to know,” even though since 1992, US intelligence had been aware of a serious Hutu plan to carry out genocide.

    French President Francois Mitterand’s guilt, it now turns out, was far more patent and direct than Clinton’s. The historians who authored the French report call it “a defeat of thinking” on the part of an administration never held accountable for its “continual blindness of its support for a racist, corrupt and violent regime.” Astonishingly, the report reveals that “French intelligence knew it was Hutu extremists that shot President Habyarimana’s plane down, which was seen as the trigger for the genocide.” Le Monde attributes Mitterand’s blindness to his “personal relationship” with the slain Hutu president.

    Historical Note

    By sneaking through the gaping cracks in the traditional parties on the right and left to be elected president, Emmanuel Macron became the leader of a new party created for the purpose of providing him with a majority in the 2017 parliamentary election that followed his historic victory. As a political maverick, Macron felt himself liberated from at least some of the shackles of history.

    He first dared to do what Fifth Republic presidents of the past had carefully avoided when, as a candidate, he attacked the very idea of colonization, which not only played an essential role in France’s past, but continued to produce its effects through the concept of Francafrique. In an interview in Algiers, the Algerian capital, early in the 2017 presidential campaign, Macron described colonization as a “genuinely barbaric” practice, adding that it “constitutes a part of our past that we have to confront by also apologising to those against whom we committed these acts.”

    Politicians on the right predictably denounced what they qualified as Macron’s “hatred of our history, this perpetual repentance that is unworthy of a candidate for the presidency of the republic.” This is the usual complaint of the nationalist right in every Western nation. Recently, columnist Ben Weingarten complained that Nikole Hannah-Jones’ 1619 Project for The New York Times Magazine was motivated by “hatred for America.” Patriots in every country tend to believe that exposing any embarrassing historical truth is tantamount to hate and intolerance of their own noble traditions. Telling the truth is treasonous.

    Embed from Getty Images

    In January 2021, the historian Benjamin Stora presented the report Macron commissioned him to produce on France’s historical relationship with Algeria. Stora proposed the “creation of a joint ‘Memory and Truth’ commission.” The report also recommended “restitution, recognition of certain crimes, publication of lists of the disappeared, access to archives” and “creation of places of memory.” Suddenly, Macron realized that he had received more than he bargained for. As the website JusticeInfo.net reported, “The French presidency said there was ‘no question of showing repentance’ or of ‘presenting an apology’ for the occupation of Algeria or the bloody eight-year war that ended 132 years of French rule.”

    These two examples demonstrate France’s curious relationship with history. They also tell us about how powerful nations elaborate and execute their foreign policy. France is not alone. Every nation’s policy starts from a sense of national interest. The ensuing analysis begins by assessing threats to it. These may be military, economic or even cultural. In the case of military threat, the nation in question will be branded either an enemy or, if diplomatic politeness prevails, an adversary. When the discord is purely economic, the other nation will most likely be called a competitor or a rival. When the threat is cultural — as when Lebanon and Israel square off against each other about who makes the most authentic hummus — foreign policy experts will simply shut up and enjoy the show.

    On the other hand, three forms of cultural competition — linguistic, tribal and religious rivalries — have real implications for the exercise of power and may seriously influence the perception of whether what is at stake is enmity, rivalry or friendly competition. The danger in such cases lies in confusing cultural frictions with political ambitions.

    The two French reports reveal that the very idea of “national interest” may not be as innocent as it sounds. It can also mean “extranational indifference,” or worse. Indifference turns out to be not just a harmless alternative to the aggressive pursuit of national interest. In some cases, it translates as a convenient pretext for the toleration or even encouragement of brutally inhuman practices. That is why Rwanda may be a stain on both Francois Mitterand’s and Bill Clinton’s legacies.

    Another feature of modern policy may appear less extreme than the tolerance of genocide while being just as deadly. As Noam Chomsky, Medea Benjamin and Nicolas J.S. Davies and others have repeatedly asserted, the imposition of drastic sanctions has become a major weapon in the US foreign policy arsenal. Sanctions essentially and often sadistically target civilian populations with little effect on the targeted leaders. Sanctions have become an automatic reflex mobilized not just against enemies or rivals, but also against the economically disobedient, nations that purchase goods from the wrong designated supplier.

    In 2012, Saeed Kamali Dehghan, writing for The Guardian, noted that the Obama administration’s sanctions on Iran were “pushing ordinary Iranians to the edge of poverty, destroying the quality of their lives, isolating them from the outside world and most importantly, blocking their path to democracy.” Nine years later, those sanctions were made more extreme under Donald Trump and continue unabated under President Joe Biden. All the consequences Dehghan listed have continued, with no effect on the hard-line Iranian regime’s hold on power. Can anyone pretend that such policies are consistent with a commitment to human rights? Do they reveal the existence of even an ounce of empathy for human beings other than one’s own voters?

    The French at least have solicited truthful historical research about their past. But politicians like Macron, who have encouraged the research, inevitably turn out to be too embarrassed by the truth to seek any form of reparation. After commissioning it, they prefer to deny the need for it.

    *[In the age of Oscar Wilde and Mark Twain, another American wit, the journalist Ambrose Bierce, produced a series of satirical definitions of commonly used terms, throwing light on their hidden meanings in real discourse. Bierce eventually collected and published them as a book, The Devil’s Dictionary, in 1911. We have shamelessly appropriated his title in the interest of continuing his wholesome pedagogical effort to enlighten generations of readers of the news. Read more of The Daily Devil’s Dictionary on Fair Observer.]

    The views expressed in this article are the author’s own and do not necessarily reflect Fair Observer’s editorial policy. More

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    The Other Side of the Indian Farmers’ Protests

    In November 2020, the Friedrich Ebert Foundation published an article by Paul Nemitz and Matthias Pfeffer on the threat to digital sovereignty in Europe. They called attention to the need in Europe for “decentralised digital technologies” to combat a trend they see as essential for preserving “a flourishing medium-sized business sector, growing tax revenues, rising prosperity, a functioning democracy and rule of law.” 

    The authors felt encouraged by the fact that the European Council was at last looking at challenging the US tech platforms that dominate global cyberspace: Google, Amazon, Facebook, Apple and Microsoft. Europe appears ready to draft laws that would impose targeted regulation strategies different from those that apply to “small and medium-sized actors, or sectoral actors generally.”

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    There are multiple reasons for such a move, which will inevitably be attacked by the corporations as violating the sacrosanct principle of free trade. Nemitz and Pfeffer recognize the complexity of the implicit goal, to ensure “strategic autonomy while preserving an open economy.” Besides the threat to traditional businesses incapable of competing with the platforms, they cite the fact that “unregulated digitalisation of the public sphere has already endangered the systemic role of the media in two respects” to the extent that 80% of “online advertising revenues today flow to just two corporations: Google and Facebook.” This threatens the viability of “costly professional journalism that is vital for democracy.”

    Europe is struggling to find a solution. In the context of the farmers’ protests in India, the Joint Action Committee Against Foreign Retail and E-commerce (JACAFRE) recently took an emphatic stand on the same subject by publishing an open letter addressed to Prime Minister Narendra Modi. In this case, the designated culprits are the US powerhouses of retail commerce, Amazon and Walmart, but the authors include what they see as a Quisling Indian company: the mega-corporation, Reliance Industries.

    The giant conglomerate claims to be “committed to innovation-led, exponential growth in the areas of hydrocarbon exploration and production, petroleum refining and marketing, petrochemicals, retail and telecommunications.” JACAFRE suspects it may also be committed to the idea of monopolistic control. It complains that Reliance’s propensity for establishing partnerships with Facebook and Google is akin to letting the fox in the henhouse. This has less to do with the platforms’ direct action than the coercive power their ever-increasingly possession and control of data represents. “If the new farm laws are closely examined,” the JACAFE’s authors claim, “it will be evident that unregulated digitalisation is a very important aspect of them.”

    Today’s Daily Devil’s Dictionary definition:

    Unregulated digitalization:

    A pandemic that grew slowly in the first two decades of the 21st century with the effect of undermining most human economic activities, personal relationships and even mental equilibrium

    Contextual Note

    Three years ago, Walmart purchased the Indian retailer Flipkart. Interviewed at the time, Parminder Jeet Singh, the executive director of IT for Change, complained that the data controlled by e-commerce companies is no longer limited to patterns of consumption but also extends to production and logistics. “They know everything, who needs it, when they need it, who should produce it, who should move it, when it should be moved, the complete control of the data of the whole system,” he said. That capacity is more than invasive. It is tantamount to omniscient and undetectable industrial spying combined with forms of social control that are potentially as powerful as China’s much decried social credit system.

    Embed from Getty Images

    In 2018, Singh appeared to worry more about Walmart than Facebook or Amazon, because it represents the physical economy. The day US companies dominate both the data and the physical resources of the Indian economy, Singh believes it would “game over” for Indian economic independence. He framed it in these terms: “If these two companies become a duopoly in the e-commerce sector, it’s actually a duopoly over the whole economy.” 

    On the positive side, he insisted that, contrary to many other countries, India has the “digitally industrialized” culture that would allow it not only to resist the domination of a US-based global company, but also permit it to succeed in building a native equivalent. He viewed Flipkart before Walmart’s takeover as a successful Indian company that had no need of a monopolistic US company to ensure its future growth. 

    Historical Note

    Fair Observer’s founder, CEO and editor-in-chief, Atul Singh, recently collaborated with analyst Manu Sharma on an article debunking the simplistic view shared across international media that persists in painting India’s protesting farmers as a David challenging a globalized Goliath insidiously promoted by Narendra Modi’s government. The Western media’s narrative puts the farmers in the role of resistance heroes against a new form of market-based tyranny.

    But as Singh and Sharma point out, this requires ignoring history and refusing to recognize the pressing need to move away from a “Soviet-inspired model” that ended up creating pockets of privilege and artificial dependence. These relics of India’s post-independence past became obstacles not only to productivity but to justice as well, to the extent that the existing system favored those who had learned to successfully exploit it.

    Singh and Sharma highlight the incoherence of a system that risks provoking deeper crises. Does that mean that Modi’s proposed reform is viable and without risk? The two authors acknowledge the very real fear farmers feel “that big private players will offer good money to farmers in the beginning, kill off their competition and then pay little for agricultural produce.” They realistically concede that, once in place, “India’s agricultural reforms will have intended and unintended consequences, both positive and negative.”

    But there may be more to the story. From the JACAFE’s perspective, the farmers’ instincts are correct. Their fear of the big players leveraging their clout in the traditional marketplace by exercising discretionary control of production and distribution becomes exponentially greater when considering that, thanks to their mastery of data, their control is not limited to the commodities themselves. It extends to all the data associated not only with the modes and means of production, but also with the channels of distribution and even habits of consumption. That explains why the JACAFE sees the 2018 takeover of Flipkart by Walmart as particularly foreboding.

    This dimension of the issue should also help us to understand why Prime Minister Modi has recently been playing cat and mouse with both Jeff Bezos of Amazon and Mark Zuckerberg of Facebook. At some point, the purely rhetorical game that even a mouse with a 56-inch chest can play while dodging the bite of a pair of voracious and muscular cats (Amazon and Walmart) has its limits. India is faced with a major quandary. It needs to accelerate its development of domestic resources in a manner that allows it to control the future economic consequences for its population but must, at the same time, look abroad for the investment that will fund such endeavors.

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    In a recent article on foreign direct investment (FDI) and foreign portfolio investment (FPI) in India, Singh and Sharma noted that the recent flood of cash can be attributed to the fact that “corporations from the US and the Gulf have bought big stakes in Reliance Industries, India’s biggest conglomerate. They are also buying shares in Indian companies. In effect, they are betting on future growth.” The problem with all foreign investment is that while it is focused on growth, the growth that investors are targeting is the value of their own investment and its contribution to augmenting their global power. From the investors’ point of view, the growth of the Indian economy is at best only a side-effect. The case of Reliance in particular will need to be monitored.

    In December 2020, Reliance’s chairman, Mukesh Ambani, promised a “more equal India … with increased incomes, increased employment, and improved quality of life for 1 billion Indians at the middle and bottom of the economic pyramid” thanks to the achievement of a $5-trillion economy by 2025. While reminding readers that “Facebook and Google are already partnered with Reliance and own stakes in Jio Platforms,” the Deccan Herald reports that the three companies have joined hands again to “to set up a national digital payment network.” The question some may be asking is this: When three partners occupy a central place in expanding Asia’s second-largest economy, who are the foxes and who are the hens?

    *[In the age of Oscar Wilde and Mark Twain, another American wit, the journalist Ambrose Bierce, produced a series of satirical definitions of commonly used terms, throwing light on their hidden meanings in real discourse. Bierce eventually collected and published them as a book, The Devil’s Dictionary, in 1911. We have shamelessly appropriated his title in the interest of continuing his wholesome pedagogical effort to enlighten generations of readers of the news. Read more of The Daily Devil’s Dictionary on Fair Observer.]

    The views expressed in this article are the author’s own and do not necessarily reflect Fair Observer’s editorial policy. More

  • in

    Wealth Inequality Breeds Health Inequality

    In an AP article last December, Maria Cheng and Aniruddha Ghosal noted that, despite official optimism concerning the capacity of emerging vaccines to provoke the definitive decline of the COVID-19 pandemic, “the chances that coronavirus shots will be shared fairly between rich nations and the rest are fading fast.” Their fears have been confirmed.

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    Natasha Frost at The New York Times reports on how wealth inequality has led to vaccine inequality, with the potentially disastrous effect of prolonging an already year-old global pandemic. She blames the various political establishments that have allowed this to happen. “It didn’t have to be like this,” she writes. “Western governments have resisted the call from global health officials to use rarely employed aggressive powers that could have forced companies to publish vaccine recipes, share their knowledge and ramp up manufacturing, in turn leading to broader vaccine access.”

    Today’s Daily Devil’s Dictionary definition:

    Aggressive powers:

    Special tools of government designed to address real, serious and urgent problems, sometimes mobilized to prosecute wars, but never employed to modify practices that might compromise the prospect of profit by private companies

    Contextual Note

    Military aggression (invasion, war, bombing campaigns) and economic aggression (sanctions, embargoes, boycotts) are the two policy instruments contemporary governments privilege to defend what they deem to be their “national interest.” Democratic nations continue to claim, against all evidence, that aggressive and fundamentally destructive actions taken against other peoples or nations — to kill, maim or simply create economic deprivation — are efficient means designed to protect their own people’s interest. Since commercial media never question this logic, discussion of what “national interest” implies never even enters the public’s field of awareness. War and sanctions sound virile and so must be good. 

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    Whereas the English language has easily accepted “military aggression” and “economic aggression” as useful descriptive terms, the idea of “health aggression” has no place in anyone’s vocabulary. Health is not something the political infrastructure believes it can or should do anything “aggressive” about. It is both too personal and too profitable. In the US in particular, health is not considered to be something to strive for, but simply as a marketplace in which, as Cole Porter once said, anything goes (to make a profit).

    In an AP article by Cheng and Lori Hinnant that appeared earlier this month, the authors explain that the marketing policies of pharmaceutical companies are the source of what is quickly becoming a desperate situation for the majority of humankind. Companies “that took taxpayer money from the U.S. or Europe to develop inoculations at unprecedented speed say they are negotiating contracts and exclusive licensing deals with producers on a case-by-case basis because they need to protect their intellectual property and ensure safety.”

    Any rational human being with a basic understanding of language should be shocked by two words in the concluding phrase of that sentence. The first is “their.” The companies believe they exclusively own what a community built and paid for. Analyzing the logic of a supply chain and production line makes it clear that the areas they have invested in turn out to be testing, redesign, packaging and delivery. These are important features of any product. But they do not justify the claim of exclusive ownership.

    The second shocking term is “safety.” The firms deem themselves protectors of their customers’ “safety.” Their role in the process of combating the virus consists of refining the product and testing it to meet public safety standards. But the marketing attitude that guides their actions continues to privilege the idea of hoarding, seeking monopolistic advantage and exploiting scarcity in a marketplace. This poses a serious risk of undermining public safety and preventing the coordinated action that alone could lead to the elimination of a global pandemic.

    Historical Note

    During the discussions to fund the vaccines, the private companies selected for the honor of producing the vaccines destined to save the world in all probability declined to take on the burden without the assurance that the research would be fully funded and the intellectual property (IP) would be assigned to them as a guarantee of future profit. The politicians who accepted those terms were undoubtedly guided by the wisdom of the economics 101 course they attended decades ago in their youth that taught them how the focus on profit is the key to economic efficiency. The higher the profit, the greater the efficiency, they were told.

    In the past four decades, this logic has even been applied to the universities that offered those courses. They have become profit-focused institutions, dedicated to supporting the bloated salaries of the administration that “ensures” efficiency rather than the educational vocation of the institution.

    Today’s drama could stand as a model lesson for a future economics 101 course, though few would imagine that profit-driven universities will be very keen on the update. If the universities refuse, it should be taught in every high-school civics class on earth. Economics 101.1 would emphasize the perversity of an economic system that forces ordinary citizens in wealthy countries to finance through taxes the research that their government will then donate to private companies that, in turn, will inevitably claim the IP without ever investing a penny of their own money.

    This pattern of socializing private companies and endowing them with product lines that ensure massive future profits through monopolistic exploitation is not limited to the pharmaceutical sector. The giants of Silicon Valley have grown into mastodons who control not just their highly-profitable marketplace, but also people’s lives (their behavior) and minds (their thoughts), thanks to the same process.

    How did we get to this point? To answer that question would require an encyclopedia delving into questions of finance, technology, politics and culture. One obvious factor is the triumph of the idea of globalization that became an article of faith for all “serious thinkers” and most politicians in recent decades. Thomas Friedman famously summed it up with the idea that “the world is flat.” It turns out that when the only recognized motivator of any kind of action concerning human health and safety — or indeed anything else — is money and profit, any other of the needs we expect the economy to address become secondary. In classic economics, a situation of needs not being met will create the demand that a new enterprise will seek to fulfil.

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    Our pundits and economic thinkers imagine that, in a global economy, the process will be even more efficient because competition can come from any direction and supply chains can be easily reconfigured. In no time at all, the needs will be effectively and efficiently addressed. But the conditions for any new competitor to realize such a scenario require three largely unattainable conditions: extravagant funding to attain a scale of credible performance, recognition by public authorities (which often requires prior contributions to their political campaigns), and the belief in the possibility of a monopolistic position. 

    Guaranteed monopoly is the hardest to achieve for a newcomer, which is why over the past two decades, pundits have highlighted the necessity of disruptive innovation. This generally means focusing on a specific market opportunity rather than addressing a fundamental need. It also means that if the need is global, there is absolutely no chance of a newcomer having an impact. The major players are safe from new competition. Disruptive innovation is a wonderful way to spawn new gadgets or convenience products. Unfortunately, global societal needs require global societal reflection, research, coordination and concerted action.

    During the wars of the 20th century, democratic nations mobilized the “aggressive powers” provided by their laws to respond to the emergency of global conflict. This posed no challenge to the principles of democracy, where all shared the idea that such measures were required for the safety of the national population. War profiteering existed, since any intense effort creates new areas of economic opportunity, but governments were guided by the collective needs of the nation. They refused to allow policy to be dictated by the profiteers.

    With the first of what may become a series of pandemics converging with an impending global climate crisis, it might just be time for politicians to show their aggression by putting public safety ahead of private profit, even if it means revising the syllabus of economics 101.

    *[In the age of Oscar Wilde and Mark Twain, another American wit, the journalist Ambrose Bierce, produced a series of satirical definitions of commonly used terms, throwing light on their hidden meanings in real discourse. Bierce eventually collected and published them as a book, The Devil’s Dictionary, in 1911. We have shamelessly appropriated his title in the interest of continuing his wholesome pedagogical effort to enlighten generations of readers of the news. Read more of The Daily Devil’s Dictionary on Fair Observer.]

    The views expressed in this article are the author’s own and do not necessarily reflect Fair Observer’s editorial policy. More