Category: GOVERNMENT

ECONOMIC CRISES

Sorkin’s “1929” makes one think about 20th and 21st century American Presidents who may have set a table for a second economic crisis. As the Turkish proverb says “…fish stinks first at the head.”

Books of Interest
 Website: chetyarbrough.blog

1929 (Inside the Greatest Crash in Wall Street History–and How It Shattered a Nation)

Author: Andrew Ross Sorkin

Narration by: Andrew Ross Sorkin

Andrew Sorkin (American author, journalist, and columnist for The New York Times.)

“1929” is a history of the build-up to the stock market crash and the advent of the depression with opinions about how today’s economy compares and what should be done to keep it from happening again. Though Sorkin is not an economist, he has written an interesting history of the build-up to the 1929 depression.

Faltering economies.

There is a sense of danger being felt by some today when reading/listening to Sorkin’s history of the 1920s. Few seem to have a clear understanding of world market forces and whether we are heading for an economic catastrophe or a mere hiccup in the growth of the economy. Neither bankers, regulators, nor politicians in the 1920s (or for that matter now) seem to have a clue about the economy’s trouble and what can be done to ameliorate risks. Like 1929, today’s insiders, power brokers, and rich have more options to protect themselves than most of the world’s population.

Increasing homelessness in America.

In America, it seems those in power have no concern about the rising gap between rich and poor or the immense increase in homelessness. Without a plan by those in power, there seems little concern about reducing inequality, the common denominator for the wealth gap and homelessness. Sorkin’s book outlines the reality of 1929 that gives reader/listeners a feel of history that may repeat itself.

Sorkin’s history seems credible as he notes human nature does not change.

Today’s leaders are like yesterday’s leaders. Not because they are venal but, like most if not all human beings, leaders in power are concerned about themselves and what there is in life that serves their personal needs and wants. Of course, the difference is that leaders that are power brokers affect others that do not have the same influence or options to protect themselves. We all have blinders that keep us from seeing the world as it is because human nature is to ask what is in it for me, i.e., whatever “it” is. The 1920s had a merger bubble in manufacturing and communication that is fed by the industrial revolution. Today, we have a merger bubble with mega-corporations like Tesla, Apple, Amazon and others that are mega-corporations capitalizing on a new revolution coming with A.I., the equivalent of the Industrial Revolution. Some critics argue mega-corporations, like what happened with the oil industry could be broken up to increase competition which is the hallmark of improved production, cost reduction, and lower consumer prices.

Charles E. Mitchell (American banker, led the First Nation City Bank which became Citibank.)

What makes this history interesting is Sorkin’s identification of the most responsible power brokers who bore responsibility for the stock market crash. Charles Mitchell of Nation City Bank is identified as the central driver of the stock market bubble. Mitchell denied the reality of the financial systems fragility. His ambition and unfounded optimism magnified the systemic risk of the financial crises. He openly defied the Federal Reserve’s warning to curb margin lending that risked other people’s money and their financial stability. He continued to promote purchase of stocks on credit that were fueling the stock market bubble. Mitchell appears to have misled the public in order to increase his power and protect his personal wealth by creating the illusion of market stability and his bank’s profitability. Though Mitchell is not the sole villain, he became the most powerful banker in the nation while breaking the financial backs of many Americans. In general, it is the self-interest of those who listened to him that have responsibility for their financial collapse, but it is always hard to know who is lying to you. Part of the blame is the hesitation of the Federal Reserve Board to act because the people in charge could not agree but that was more a matter of omission than commission which Mitchell was charged with but not convicted. Of course, the political leaders of that time also failed but hindsight is a lot easier than foresight.

Artificial Intelligence is today’s equivalent of the Industrial Revolution of the twentieth century.

Similar to the corporate mergers and investment from growing industrialization of the 1920s, today’s mania is mega corporation’ investment in Artificial Intelligence. Sorkin notes the ease of trading stocks, expectations of crypto investments, and A.I. hype may well move the market beyond its value. He argues for stronger guardrails on speculative investments, more limits on margin lending, and transparency on high-risk investments. He cautions easier credit as seen this Christmas season with buying based on delayed payment incentives and increasing credit card availability, card balance increases, and more liberal repayment terms. In general, Sorkin wants to see more, and better government oversight and regulation of credit offers. He believes too many lenders are overly optimistic about the future with the gap between rich and poor widening and trending to get worse. That inequality threatens the success of capitalism as a driver for shared prosperity, and economic growth.

Herbert Hoover (President 1929-1933, though characterized as the primary villain for the depression, Sorkin identifies his role as one of omission rather than commission.)

The Presidents shown below carry some responsibility for where the American economy is today but that would be another book.

Clinton, the first Bush, the second Bush, Obama, Biden, Trump.

Sorkin’s “1929” makes one think about 20th and 21st century American Presidents who may have set a table for a second economic crisis. As the Turkish proverb says “…fish stinks first at the head.”

Orwell & A.I.

In the pre-A.I. age, democratic socialism is unachievable, but A.I. may resurrect its potential. However, as Orwell noted, the risk is a “Brave New World” rather than a hoped-for democratic socialism.

GEORGE ORWELL (Author, 1903-1950)

In Norm Chomsky’ ‘s and Nathan Schneider’s book, “On Anarchy”, George Orwell’s book “Homage to Catalonia” is called one of Chomsky’s favorite books. “On Anarchy” infers Orwell believed in anarchy because of his role in the war (1936-1939) against the Franco government. Though Orwell’s risk of life in Spain’s war is inconceivable to me, it seems prudent to listen to his story and point to the significant difference between what Chomsky and Schneider infer about Orwell’s belief in “…Anarchism” and what Orwell really wrote and believed. Though Orwell takes anarchism seriously as a political working-class movement, he believes it is impractical and that democratic socialism (with “1984” reservations) is what he believes could be the best form of government. The idea of abolishing all forms of coercive authority and hierarchy with a government anarchy is impractical because of the nature of human beings.

Francisco Franco with his soldiers in 1936.

Because of Orwell’s belief in democracy and equality he chooses to join the fight against Franco’s fascism. He joins the resistance at the age of 33 because of his belief in democratic socialism. He felt he needed to join the ideological struggle against Franco’s regime. It is a remarkable decision considering he is married, and relatively unknown. He is oddly driven by his moral belief in democracy and equality. Presumably, he entered the war to understand what it means to fight a war against a government he felt was immoral and totalitarian. Orwell served for approximately six months beginning in December 1936. He was shot in the throat and nearly died.

Anarchy and human nature.

It seems inconceivable that anarchism is a reasonable way of governing human nature. It is interesting to contrast what Orwell believes and what anarchists argue. This is particularly relevant in the 21st century because of the inevitable change in society that is occurring with artificial intelligence. A.I. has an immense potential for creating Orwell’s “Brave New World”. However, his writings reject the ideal of “Anarchy” espoused by Chomsky and Schneider because of its impracticality. Orwell shows that human nature contains both heroism and weakness tied to the material world. Even though human nature is basically decent, it is easily corrupted. That corruption makes humans hope and fear human decisions designed by consensus. It is not to say democratic socialism would be infallible, but it offers a structure for regulation of different governments at chosen intervals of time.

“The Laws of Human Nature” is a tour deforce of what one learns in life.

Human nature will not change. Human nature is a set of relatively stable psychological, biological, and social tendencies that are shared by all human beings. These tendencies shape how humans think, feel, and act even as culture and governance changes. Artificial intelligence will only intensify the strengths and weaknesses of human nature. The principles of anarchy in an A.I. world is frightening:

  • No centralized government, police, or standing armies.
  • Society organized through federations of communes, cooperatives, or councils.
  • Emphasis on direct democracy, mutual aid, and local autonomy.
  • Suspicion of any coercive authority — even democratic majorities.
  • Change often imagined as revolutionary, not incremental.

A more rational alternative to Anarchy is Democratic Socialism believed by Orwell and espoused by MLK.

  • The state remains, but becomes more egalitarian and accountable.
  • Markets may still exist, but are regulated or supplemented by public ownership.
  • Political parties and electoral competition are central.
  • Emphasis on universal programs: healthcare, education, housing, worker protections.
  • Change is gradual, through reforms, not revolution.

Differences of opinion.

There are obvious differences between Chomsky’s and Orwell’s beliefs. Both have social weaknesses. Human nature gets in the way of both forms of governance. Orwell seems to have recognized the weaknesses of his belief in democratic socialism in his writing of “Brave New World”. In contrast, Chomsky’s and Schneider’s pollyannish view of anarchy as “…a better form of government where power is decentralized and citizens can and should collectively manage their own affairs through direct democracy and cooperative organizations” is absurd. The difference is that Orwell foresees the dangers of his idea in “Brave New World” which anticipates something like A.I. that has the potential for society’s destruction. “On Anarchy” ignores the truth of human nature, “Brave New World” does not.

Franciso Franco (1936-1975, died in office.)

Orwell’s decision to join opposition to Franco’s dictatorship fails. Their right-wing beliefs in authoritarianism, anti-communism, and pro-Catholicism prevails. Spain’s 1930s opposition leaders (Manuel Azaña, Largo Caballero, and Juan Negrín) were pro-democracy with anti-fascist, socialists, communists, anarchists, trade unions, urban workers, and peasants who Orwell joined to support democratic socialism, not anarchy.

In the pre-A.I. age, democratic socialism is unachievable, but A.I. may resurrect its potential. However, as Orwell noted, the risk is a “Brave New World” rather than a hoped-for democratic socialism.

PEACE IN ISRAEL

Like America’s Civil War and the issues of slavery and independence, peace will only come to Israel with a political and territorial agreement based on human equality.

Books of Interest
 Website: chetyarbrough.blog

BEING JEWISH AFTER THE DESTRUCTION OF GAZA (A Reckoning)

Author: Peter Beinart

Narration by: Malcolm Gladwell

Peter Beinart (Author, journalist, political commentator, professor, former editor of the New Republic, born in Cambridge, Mass. to Jewish immigrants from S. Africa.)

This is a surprising Jewish author’s analysis of Israel’s response to the horror of Hamas’ murders/rapes of 1200 people and the taking of 251 Jewish hostages on October 7, 2023. Peter Beinart appears to be a devout Jew and journalist who criticizes Israel’s response to Hamas’s brutal attack and hostage taking. He believes, as current news reports confirm, Hamas will return to control and influence Gaza and West Bank Palestinians after Israel’s brutal response to the Hamas’ atrocity.

NYT’s Picture of Grief over the Hamas attack on October 7th, 2023.

Without reservation, Beinart condemns Hamas for their war crime on October 7th. However, his book equally condemns Netanyahu’s response. Beinart points to the Israeli government’s destruction, murder, and starvation of thousands of Palestinian men, women, and children who had nothing to do with the planning or execution of the Hamas horror of October 7th. The author argues Israel must focus on a political, non-military solution to Palestinian human rights. He believes Netanyahu’s actions only perpetuate a cycle of violence in Israel which will not achieve security for either the Israeli or Palestinian people.

One wonders how unpopular Beinart’s opinion may be among Israel’s Jewish population. As a blogger who received written comments from a devout Jewish person who supports Trump and Netanyahu’s actions in Israel, it is surprising to hear Beinart’s analysis of the Gaza war and his criticism of Israel’s actions. As the reviewer of this book who admittedly has little respect for religion and its history of atrocities, it is encouraging to hear from one who believes in their religion and condemns those who have no empathy for other religions. God is a universal concept with religions that worship His existence in different ways. Beinart makes one wonder why there is so little room for a “let it be” attitude toward different religious beliefs.

Empathy.

Beinart argues for Jewish empathy toward Palestinians while condemning Hamas’ actions in Israel. He believes long-term peace requires political compromise and a recognition of Palestinian rights. Military actions only guarantee rather than deter future violence and injustice. Beinart’s plan is to end Israeli’ occupation of Gaza and expand the rights of Palestinians to control Gaza and the West Bank. He argues it can be either a one-state or two-state solution. Beinart argues ground invasion by Israel in Gaza must stop. He recommends forthrightly engaging the humanitarian crises in Gaza by providing aid and rebuilding what has been destroyed.

Pursuit of peace is not easy.

None of this is easy because of the enmity that remains. The complications of political opposition, and security are ongoing concerns for Israelites and Palestinians, but Beinart believes the risks of a negotiated political, religious, and territorial settlement is worth it. Human equality is a work in progress for all nations in the world. Beinart persuasively argues a political and territorial agreement between Palestinians and Israelites is the only possible path to peace. Like America’s Civil War and the issues of slavery and independence, peace will only come to Israel with a political and territorial agreement based on human equality. Of course, the drive for equality remains a work in progress for America. That will be true in Israel for generations to come, but peace can be restored with pursuit of equality for Palestinians and Jews.

HARD TIMES

America’s next President needs to forcefully change the economic direction of America in the same way Timothy Egan shows Franklin Roosevelt and the Secretary of Agriculture, Henry Wallace, did during the Dust Bowl and Depression era.

Books of Interest
 Website: chetyarbrough.blog

THE WORST HARD TIME (The Untold
Story of Those Who Survived the Great American Dust Bowl)

Author: Timothy Egan

Narration by: Jacob York

Timothy Egan (Author, American journalist, former op-ed columnist for The New York Times, won the National Book Award in 2006 for “The Worst Hard Time”.)

Timothy Egan wrote an interesting history of America during the dust bowl years that resulted in the Great Depression that lasted from 1929 to the early 40s. “The Worst Hard Time” has concerning parallels to today’s economy. Timothy Egan notes the Dust Bowl is caused by climate change, water scarcity, and energy transition, i.e. all conditions of the year 2025.

Contrary to Trump’s belief that global warming is a cycle of nature, most scientists argue the earth is warming because of the world’s burning of fossil fuels.

Clean potable water is a growing threat to a rising world population.

American Oil Refineries.

Transition from fossil to renewable energy sources is being delayed by the Trump administration.

Agricultural markets dramatically rose and fell in the 1920s and 30s. Wealth and greed created by wheat farming blinded farmers to the harm they were doing to the Nebraska, Oklahoma, and Texas panhandle plains of middle America. With the scarification of soil and seasonal planting and harvesting of wheat, millions of acres of grass land were left barren between crop seasons.

Trump is a sad reminder of the political blindness of Herbert Hoover.

Herbert Hoover (31st President of the United States.)

Tariffs and anti-immigration policies were instituted by the Hoover administration as a response to declining prosperity caused by excessive wheat farming cultivation. This is reminiscent of President Trump’s response today with tariffs, militant immigration policies, and his rejection of science that warns of the impact of global warming.

Trump’s modus vivendi.

Artificial Intelligence in today’s economy has increased investment of billions of dollars in today’s money like that spent to grow and harvest wheat in the 1920s. Investment in farmland skyrocketed in the 1920s with farming as a way to increase wealth with cultivation of land that was nearly free in Nebraska, Oklahoma, and the Texas panhandle. Today, massive investments in A.I. are being made by wealthy tech company owners. Without pragmatic and careful implementation of A.I. to America’s economy, tech company’ investments may have the same consequence to its investors as the farming collapse had to the wheat farmers.

A.I. will become the engine of American economic improvement just as Industrial Revolution changed agricultural production.

Today, A.I., rather than industrialized agriculture, has become the great economic engine of America. Today’s massive investments are in A.I. rather than wheat harvesting. The collapse of wheat prices because of oversupply disrupted the American economy because workers were not needed. A.I. will have a similar impact on all industries which may lead to the next world-wide depression.

1933 Depression bread lines.

Trump’s idea of Making America Great Again is a twentieth century idea that may lead to economic collapse rather than economic prosperity. His tariff policies set a table for damaging the world economy in the same way they did when Hoover became President. America needs to embrace the inevitable decline of human manufacturing and focus on transitioning America to a service economy. America needs more doctors, nurses, social workers, educators, house builders, scientists, and ecologically minded politicians rather than investors and manufacturers of disposable conveniences. At the same time, regressive tax policies that penalize the poor and enrich the wealthy need to be changed. Tax revenue needs to be focused on America’s economic transition from a disposable manufacturing economy to service and ecological preservation industries.

The hope for GDP growth in America’s future depends on a change in economic direction.

America’s next President needs to forcefully change the economic direction of America in the same way Timothy Egan shows Franklin Roosevelt and the Secretary of Agriculture, Henry Wallace, did during the Dust Bowl and Depression era. The reversal of Trump’s mistakes will take more than one four-year-term for correction, but the next election needs to set a different course for the American economy.

VICE PRESIDENTS

Harris’s tough mindedness and potential are well illustrated in “107 Days”. America is ready for a woman to be President, but Ms. Harris may have too much baggage to be a successful candidate for President in 2028.

Books of Interest
 Website: chetyarbrough.blog

107 DAYS

Author: Kamala Harris

Narration by: Kamala Harris

Kamala Harris (Author, former V.P. of the United States and former California attorney general.)

The obvious message of Kamala Harris’s book “107 Days” is that the Democratic Party lost the presidency because of the compressed time for Harris to mount her campaign. There are many reasons noted for Harris’s failure to get elected as President of the United States. She notes Biden’s weak candidacy, party disorganization, misinformation and disinformation, foreign policy controversies and protests, polarization and turnout problems, and cultural/generational messaging gaps. “107 Days” is a well written and narrated story of the difficulties that Harris had in her political race against Donald Trump. Her book is a compelling argument. However, it seems her most likely cause of defeat is time.

Donald Trump (President of the U.S., politician, media personality, born into a wealthy New York City family, has a B.A. in Economics from University of Pennsylvania.)

Retrospectively, Harris’s story makes many think she would have been a better President than Donald Trump. The story of her book reinforces that belief. However, that is misleading in the sense that Harris is faced with two burdens that are difficult, if not impossible, to overcome. One, America has never had a woman President and two, Harris is too closely associated with the administrations cover-up of Biden’s intellectual decline. There are many causes one can give to understand why Harris is defeated but time to know who she is seems the most crucial.

Vice President Harry Truman became President with the death of Franklin Roosevelt.

It seems most Vice Presidents of the United States are viewed as figure heads or pawns to increase votes for the person who is running for President. The duties of a Vice President today seem more like “gopher” jobs that give little visibility to the character of the person chosen to be Vice President. Only when that person becomes President, does the world find out who the Vice President is and what capabilities he (before Harris, they were all men) brings to the office. (For example, Trump’s successor, if it was his V.P., is unknown and unpredictable.) Harry Truman, retrospectively, is one of the great Presidents of the United States but no one thought a part owner and proprietor of a grocery store could be a competent President of the United States.

Five V.P.’s in history became Presidents of the United States.

Though there have been several Vice Presidents (John Adams, Thomas Jefferson, Martin Van Buren, Richard Nixon, and Biden) who have successfully become Presidents of the United States their election was determined by campaigning. Regardless of whether time was the determining factor in Harris’s loss of the Presidency, her book shows she has the intelligence and ability to be America’s President. What that means to her and the future of America is unknown. One presumes Harris will consider running for President, but one suspects the burden of her loss to Trump is likely to diminish her chance of getting enough political support for her candidacy.

Presidents of the United States.

Harris’s tough mindedness and potential are well illustrated in “107 Days”. America is ready for a woman to be President, but Ms. Harris may have too much baggage to be a successful candidate for President in 2028.

CAPITALISM’S REFORM

Like abolition, women’s suffrage, labor, civil rights, LGBTQ, and MeToo movements of the distant and near past, capitalism’s reform is due.

Books of Interest
 Website: chetyarbrough.blog

SAVING CAPITALISM (For the Many, Not the Few)

Author: Robert B. Reich

Narration by: Robert B. Reich

Robert Reich (Author, American professor, lawyer and political commentator that worked in the Geral Ford and Jimmy Carter administrations, and served as th secretary of labor in Bill Clinton’s administration.)

Robert Reich, as an advisor to Presidents of the United States is recognized by Time Magazine as one of the Ten Best Cabinet Members of the 21st Century and by the Wall Street Journal as one of the most influential business thinkers in 2008. In “Saving Capitalism” Reich criticizes corporate America for unethical and unfair capitalist practices that make a mockery of capitalist equality.

U.S. Rising Income Disparity.

Economic class warfare in America is a time worn argument by many economists in the 20th and 21st century. Reich’s topical analysis has some truth, but his analysis of wealth and markets oversimplifies the complexity of American capitalism. One cannot deny the harm that capitalist greed has done to increase wealth of the rich and decrease wealth of the poor in America. The political system is rigged by the influence of wealth over political policy and economic equality.

American capitalism’s rigging begins at birth, carries through public education, and ends in low-income opportunities for the poor.

The power of wealth feeds American capitalist Democracy’s circle of life. Money of the wealthy is spent to birth and educate their children with the best medical care and schools in America. The corporations and super rich of America hire and fund lobbyists who promote corporate agendas to support government representatives’ campaigns for office. The aspiring representatives are people who owe their allegiance to corporations and the rich who helped get them elected. That circle is biased toward making the rich richer.

Equality of opportunity is rigged in ever-larger corporations that reap super profits and pay CEO’s millions of dollars per year while low wage earners are left to fend for themselves. Mega corporations should be broken up like the oil industry dismantling in 1911. Like Standard Oil, today’s conglomerates have too much power over consumer purchasing, advertising, social media, medical industries, and (most importantly) the election process of America. The rigging begins with healthy birthing of children of the rich, extending to less qualified schooling for the poor, and ending with low-wage family’s children having unequal economic opportunity.

One cannot deny that Reich’s book and this biased review are an ideological belief that distorts and oversimplifies reality, but it carries an element of truth that cannot be denied. How can one person be worth a potential trillion-dollar net worth for service as CEO of one company that makes electric cars. Corporations like Amazon, Google, Facebook, UnitedHealth Group, and Cencora control markets through their size to capture disproportionate shares of advertising, social media, retail sales, and medication industries without competition to moderate their power, and influence. Add billionaires like Elon Musk, Larry Ellison, Mark Zukerberg, Larry Page, Steve Ballmer, Warren Buffett, and Michael Dell and others of great wealth–one is inclined to believe American capitalism is rigged.

As brilliant as Musk shows himself to be, his fragile ego diminishes his genius.

There is an unfairness in criticizing the wealthy for their success in America. They are not wealthy because of luck but because of their innate abilities, risk taking, and hard work but influence should not come from the power of their wealth to change government policies that focus on enriching themselves. Just as the robber barons had their influence curbed by antitrust legislation, the same should be done today. The influence of lobbyists and their support should be more publicly disclosed. The federal government should play more of a financial role in improving public education. Cries of inequality should be exposed, critiqued, and adjudicated fairly.

Survival of global capitalism seems dependent on reducing the gap between billionaire/millionaire capitalists and the wage-earning public.

Capitalism remains the best economic system in the world, but it has its weaknesses. The best prescription for that weakness is equality of opportunity in the arena of employment competition. It begins with fair and equal access to medical care and access to a good education.

Like abolition, women’s suffrage, labor, civil rights, LGBTQ, and MeToo movements of the distant and near past, capitalism’s reform is due.

JUSTICE?

Putin has been indicted by the International Criminal Court for war crimes, unlawful deportation and transfer of Ukrainian children but has not yet faced trial. One suspects President Putin faces the same “slap of the hand” as Pinochet and will die of natural causes without being convicted for his crimes.

Books of Interest
 Website: chetyarbrough.blog

38 LONDRES STREET (on Impunity, Pinochet in England, and a Nazi in Patagonia)

Author: Phillip Sands

Narration by: Phillip Sands

Peter Sands (Author, Executive Director of the Global Fund to Fight Aids, Tuberculosis and Malaria, former CEO of Standard Chartered, known as a British Banker.)

Peter Sands book is interesting and a compelling history that would have been clearer if, at the beginning of his book, he had more precisely identified Augusto José Ramón Pinochet Ugarte’s atrocities in Chile. Those atrocities are detailed after one is nearly halfway through the book.

“38 Londres Street” is the address at which torture, illegal detentions and assassinations took place under the leadership of Pinochet. Sands explains 40,000 people were detained or tortured under Pinochet’s regime. 3,000 people were killed or disappeared during Pinochet’s reign. He ruled Chile for 17 years before being arrested in London when a Spanish judge issued a warrant for his arrest for genocide and terrorism. This was the first time a former head of state was charged for a crime by a universal jurisdiction.

Augusto Pinochet (born in 1915-died in 2006. As a military officer and politician, he instituted a military coup to become dictator of Chile from 1978 to 1990.)

Pinochet became Dictator of Chile when he overthrew President Salvador Allende in 1973.

Because of mining and trade interests in Chile by American and British corporations, along with distrust of Allende’s Socialist Party and Marxist beliefs, Allende was considered an enemy of America’s and Great Britain’s leadership. Allende was often labeled as a Communist because of nationalizing Chile’s copper mines, redistributing land, and increasing wages for less wealthy Chileans.

In truth, Allende rejected the idea of a one-party communist state while believing Chile should gradually become a Democracy. Both America and Great Britain supported Pinochet’s revolution because of their economic interest in trade with Chile and their opposition to his socialist beliefs. Declassified records show the CIA funded opposition parties to destabilize Allende’s government. Because Britain was a close ally of America and had economic interests in Chile, both Nixon and Edward Heath, the Prime Minister of Great Britain, supported Pinochet’s military junta. When Margaret Thatcher became Prime Minister, she also supported Pinochet’s government. In the atmosphere of the cold war, Pinochet’s rebellion seemed in the best interest of America’s and England’s leadership.

Walter Rauff was a Nazi commander during WWII who escaped justice for exterminating an estimated 100,000 people in gas vans. Rauff designed the vans for Hitler’s occupation of Poland, Russia, and Ukraine. The picture to the right is Rauff as he appeared in Chile as an employee of Pinochet’s government.

The reason for the Chilean coup is not what Phillip Sands is primarily interested in but, as an author and lawyer, he explains the significant change in jurisdictional law with Pinochet’s indictment. It set a precedent for a foreign country’s right to indict another country’s leadership that tortures, disappears, and kills its own citizens.

The most troubling part of his argument for the change in international law is that it seems ineffective when only viewed from the indictment of Pinochet. To find a leader chargeable for genocide is important, but Chile’s protection of death camp SS officers like Walther Rauff reminds one of Putin’s atrocities as President of Russia. Rauff was protected by Pinochet’ government despite his role in Nazi Germany. Sands notes that Rauff assisted Pinochet in Chile’s repressive activities at 38 Londres Street.

Rauff’s disguised ambulances used to gas Jewish citizens and others.

The last half of Sands’ book is about the extensive interviews and research he did on Rauff’s past life. Like Pinochet, Rauff escapes justice and dies of natural causes. However, Jewish Nazi hunters did track down Rauff with the intent of killing him. Sands explains they were unsuccessful despite having knocked on his door before being denied access by a woman who answered the knock.

Magistrate Baltasar Garzón (Former judge of Spain’s central criminal court that set the precedent for universal jurisdiction.)

The world owes Spain gratitude for embracing universal jurisdiction despite its failure to successfully hold Pinochet for his crimes against humanity. That precedent gives weight to the principle of international justice. Magistrate Baltasar Garzón used the Pinochet case to set the precedent that sovereignty does not shield perpetrators of torture and genocide to be free of indictment and its potential for punishment. Adolf Eichmann is brought to justice in 1961 and the survivors of the 2003 massacre in Bolivia were awarded $10 million in damages.

One’s thoughts go to Putin’s incarceration of Navalny, his ordered slaughter of Chechens and his aggressive war against Ukraine. Navalny exposed Putin’s corruption in state-owned companies owned by Kremlin elites, i.e. the same elites that support the war in Ukraine.

Will Putin escape the long arm of the law?

As a professor of international law, Sands gives listener/readers a view of the important precedent of universal jurisdiction with the successful arrest of Pinochet for crimes against humanity. The irony of Sands history of this precedent is that Pinochet is not convicted and returns to Chile in 2000. Pinochet dies in 2006 at age 91. Putin has been indicted by the International Criminal Court for war crimes, unlawful deportation and transfer of Ukrainian children but has not yet faced trial. One suspects President Putin faces the same “slap of the hand” as Pinochet and will die of natural causes without being convicted for his crimes.

U.S. WEALTH GAP

Capitalism should be designed to ameliorate the wealth gap, not exaggerate it to the point of people going hungry in one of the richest countries in the world. Capitalism is the greatest economic system in the world, but equality of opportunity remains a work in progress that is made worse by poor government policies and the inherent faults of human nature.

Books of Interest
 Website: chetyarbrough.blog

This Time is Different (Eight Centuries of Financial Folly)

Author: Carmen Reinhart, Kenneth Rogoff

Narration by: Sean Pratt

Carmen Reinhart (on the left) is a Cuban American economist and Professor of the International Financial System at Harvard Kennedy School of Business. She has a Ph.D. from Columbia University. Kenneth Rogoff is an American economist and chess Grandmaster who received a B.A. and M.A. from Yale and a PhD in Economics from MIT.

Two well educated academics try to explain why world economies are not unique by arguing the patterns of financial crises are similar, if not identical.

They argue heavy borrowing, inflated optimism, bank collapses, high inflation and currency devaluations are common characteristics of nation-state financial crises. These nation-state government actions and reactions are a result of innate human behaviors. They argue recurrent financial crises feed off of each other to spread economic chaos that creates panic among economic movers and shakers of national economies.

Our American government.

The importance of Reinhart’s and Rogoff’s observation is particularly interesting in light of the economic disruptions of the current American government. History shows America is not exempt from economic crises. In 2008’s economic crises America carries a large responsibility for itself and other nations near collapse. The 2008 economic crisis shows how domestic debt can threaten the world, let alone one country.

Maybe American government is not above the law, but a President shows he is capable of bending it.

In light of Donald Trump’s directed tariff war and his “…Big Beautiful Bill Act” that eliminates federal income taxes on Social Security, tips, and overtime pay, America’s national debt is likely to balloon. He is gambling American citizens’ future on belief that tax reductions will be offset by economic gains from improved industrial development. This is at a time when industrial development is being impacted by arbitrary firing of government employees, AI innovations that reduce employment, and industry employees retiring or transitioning to a service economy that pays less livable wages.

Trump’s tax policy will continue its top tax rate at 37% despite the government’s earlier intent to have it revert to 39.6%.

The effect of these tax policy changes is expected to reduce tax revenues by 4 to 5 trillion dollars at a time when America’s debt has never been higher. It is estimated at $38 Trillion dollars today. America’s interest rate on that debt is 3.393%, more than double the rate of five years ago. The increasing rate is related to the believed risk of U.S. default which will most likely rise with Trump’s tax breaks. U.S. debt has never been higher. Interest at its present rate will consume 14% of the federal government’s outlay in 2028. That 14% could help pay for the Affordable Care Act that is opposed by the Republican majority. The Trump tax policy implies continued heavy borrowing, an inflated optimism that threatens bank collapses, high inflation, and currency devaluations. Though the authors are not writing that America is on the verge of economic collapse, their observations infer a crisis is nearing, if not inevitable.

The gap between rich and poor in America is unconscionable.

Capitalism should be designed to ameliorate the wealth gap, not exaggerate it to the point of people going hungry in one of the richest countries in the world. Capitalism is the greatest economic system in the world, but equality of opportunity remains a work in progress that is made worse by poor government policies and the inherent faults of human nature.

EVIL’S PERSONIFICATION

One asks oneself, what leaders in the world today have remorse for the incarcerations, torture, and killings for which they are responsible? What remorse is there in Putin’s, Ayatollah Ali Khamenei’s, Prime Minister Netanyahu’s, and even our American President’s thoughts?

Books of Interest
 Website: chetyarbrough.blog

CONFRONTING EVIL (Assessing the Worst of the Worst)

Author: Bill O’Reilly, Josh Hammer

Narrated By: Robert Petkoff

Bill O’Reilly, American conservative commentator, journalist, author, and television host. Josh Hammer, American conservative commentator, attorney, co-author, and columnist.

History taken out of the context of its time often distorts the reality of the past.

“Confronting Evil” is an interesting if not nuanced history of the most notorious leaders in the world. They were responsible for the torture, incarceration, and death of millions. As is true of most if not all histories of famous and infamous leaders, historians and pundits choose facts that reinforce their view of world’ history. Even the best historian is influenced by the time in which they write and their choice of facts.

Nathan Bedford Forest (1821-1877, General in the Confederate States of America during the Civil War.)

One is appalled by the truth of Nathan Bedford Forest’s view of slavery during America’s Civil War. Forest directed the slaughter of people based on the color of their skin. Forest condoned the murder of all who believed in equality of human beings. Forest is considered a hero to some but with the passage of time and a growing belief in human equality, Forest is recognized as a despicable human being by those who know the history of his life and profession. The evidence of science and human accomplishment show that the color of one’s skin is no measure of intelligence or capability. Forest’s mistreatment of slaves and the wealth he created from trading in slaves is reported in this history. By many measures, Forest is shown as an evil person by O’Reilly and Hammer.

The rule of Genghis Kahn is said to have caused the death of 40 million people, an estimated 11% of the global population at his time in history.

Presumed image of Genghis Kahn (1162-1227, Founder and first Khan of the Mongol Empire.)

By some measures, Mao doubled that 40 million number with his “Great Leap Forward”, the “Cultural Revolution”, his labor camp creations, and political purges. Hitler is estimated to have caused the death of 17 million with his genocidal policies while casualties from WWII are estimated at 85 million. Hitler’s antisemitism is born of the same stupidity exhibited by Nathan Bedford Forest in America’s Civil War. The contribution of Jewish society to the world is incalculable.

Mao Zedong (1893-1976) Father of the Peoples Republic of China)

Mao’s great leap forward is estimated to have caused the death of 35 to 45 million citizens. The rule of Stalin is estimated to have caused the death of 20 to 60 million U.S.S.R.’ citizens. Stalin’s takeover of Poland, and the Baltics after WWII and his cruelty is remembered by survivors of his rule.

There are many other evil characters in “Confronting Evil”. In the mind of westerners, the current leaders of Iran and Russia are evil. The leader of Iran, Ruhollah Khomeini is estimated to have ordered deaths of Iranians that exceed 250,000 since his takeover in 1979. Though he has passed, the succession of Ayatollah Ali Khamenei has carried on with tens of thousands who have died in Iran’s involvement with Hamas in Palestine, Syria, Iraq, Yemen, and Lebanon. The predecessor of the religious leaders of Iran was Mohammad Reza Shah Pahlavi who reigned from 1941-1970. Pahlavi is estimated to have murdered 3,000 to 20,000 during his reign. These leaders ruled over an impoverished state but incomes per capita fell from $34,660 during the Shah’s reign to $3,150 under Khomeini’s rule. An irony is that income inequality hugely increased in Iran during Khomeini’s rule. Nuanced reality is that poverty and victimization of Iranians is more widely spread under Khomeini than under the former Shah. On an economic scale it appears Khomeini’s evil as a leader exceeds the Shah’s rule. Added to the economic difference is the religious zealotry of Khomeini which widened the gap of sexual inequality in Iran.

Ruhollah Khomeini (1st Supreme Leader of Iran, 1979-1989)

Ayatollah Ali Khamenei (Current leader of Iran.)

The authors address the illicit drug industry and the evil of Pablo Escobar in Columbia and “El Chapo” Guzmán in Mexico. Escobar was killed in 1993 when pursued by drug enforcement officers while Guzmán is serving a life sentence in the U.S. The drug industry continues to thrive despite the harm it is doing to America and the world. The leaders of the criminal drug industry care nothing for the consequence of their actions because of the wealth and power the illicit trade offers.

Pablo Escobar (now deceased) noted on the left with “El Chapo”(arrested and imprisoned in America) on the right.

The last two chapters of “Confronting Evil” offer a pithy definition of evil. Evil is defined as doing harm without remorse. One doubts any of the leaders noted by the authors have or had any remorse for the atrocities they have committed. Whether they rationalize their behavior for the good of their people, their religion, or their country—they are evil by O’Reilly and Hammer’s definition. One doubts any of the leaders noted in “Confronting Evil” are remorseful.

One asks oneself, what leaders in the world today have remorse for the incarcerations, torture, and killings for which they are responsible? What remorse is there in Putin’s, Ayatollah Ali Khamenei’s, Prime Minister Netanyahu’s, and even our American President’s thoughts?

MEDIA PLATFORMS

Cory Doctorow shows how the American public is being taken advantage of by today’s major private media owners and manipulators.

Books of Interest
 Website: chetyarbrough.blog

Enshittification

Author: Cory Doctorow

Narrated By: Martin Sheen

Cory Doctorow (Author, Canadian-British blogger, journalist)

Despite the poor choice of titles for Cory Doctorow’s book, his theme of internet corruption is inevitable because of the nature of human beings. The corruption of which Doctorow writes is evident in most mega-corporations and governments. The only difference is in their motivation, i.e. whether it is money, power, or both in world organizations.

Elon Musk (Businessman, billionaire, entrepreneur, leader of Tesla, SpaceX, Twitter, and xAI.)

The first part of Doctorow’s book is an evisceration of the famous Elon Musk. Not surprisingly, Doctorow is not a fan of Elon Musk. Musk is an example of the theme of Doctorow’s book. Musk’s acquisition and decimation of a widely used communication platform known as Twitter exemplifies “Enshittification”. Doctorow infers Musk’s desire to have a free speech forum is actually a betrayal of the principle of free speech. The reality is that Musk has only created a Megaphone for his personal biased beliefs. Musk’s first action in the Twitter acquisition is to fire essential employees to reduce costs of operation. One presumes from Doctorow’s theme that Musk’s first step results in “Enshittification” of Twitter. Twitter’s new name is “X”. “X”s value has plummeted just as the American government’s service to the poor has fallen. With Musk’s singular focus on reducing cost, without consideration of effectiveness, enshittification is virtually guaranteed by Musk’s actions.

(Though not mentioned by Doctorow, it seems to this critic, that Musk’s firing of government employees under Trump, is similar to the dismantling of Twitter. The firing of government employees results in citizen-service’ losses equivalent to Twitter’s loss of advertisers.)

Traditional media is a one-way broadcast of information whereas the Internet is two-way interactive communication. Anyone can publish on the internet while singular corporations or institutions that own traditional media have only a one-way form of communication. The internet is global, instant, and decentralized while traditional media is scheduled for delivery and centralized. Access with on-demand, 24/7 internet are not time-bound like traditional media. The cost of using the internet is low and often free while traditional media entails infrastructure costs.

Trouble arises with the internet because of its ubiquitous availability while traditional media is singularly targeted.

The internet is immediate while publications are period based. It is possible to precisely and instantaneously measure internet responses based on clicks, views, and engagement while traditional media relies on third party analysis by publishers or by hired companies like Nielsen. Doctorow shows how differences between internet and traditional media exacerbate loss of privacy and increase potential for massive societal disruption. The internet can immediately influence and potentially control social beliefs. In less capitalist and more authoritarian governments the danger of the internet is direct influence and control of its citizens.

In American capitalism, the danger lies more in the drive for profitability than the control of social and political belief.

Doctorow argues America’s social norms are being corrupted by disparate industries that are creating tech platforms to monopolize product consumption only for economic gain, not service to its users. The consequence erodes trust of the public, distorts accountability, and thwarts free choice. The ruling classes of American society can evade traditional checks and balances. The utility of the internet can be used to distort the truth. Corporate objective is to make more money, not to benefit public discourse, improve product, reduce product cost, or improve service, but to monopolize consumption.

On the one hand, Doctorow acknowledges social media platforms optimize engagement. However, these platforms become forums for outrage, and misinformation that tribalizes society.

Rather than improving connections between people, algorithms are created by users of a media platform to exacerbate outrage, foster conspiracy theories, stir up and ultimately exhaust the public. The objective is increase clicks to make buyers of advertising to purchase time on their platform. As a free society, Doctorow suggests Democracy can mitigate the “Enshittification” by regulating the internet. He argues that one’s use of a platform should not monopolize personal information by restricting one’s right to take their information with them if they become unhappy. Platforms should not be prisons that restrict users legal right to their personal information if they choose to change platform providers. He argues for a breakup of major providers like Amazon, Facebook, Google, X, and Adobe.

Doctorow argues for more transparency in the algorithms being used by media platforms.

The public should be informed about how a platform’s algorithms are being used to steer the public. Individuals should be given the opportunity to opt out of algorithmic categories if they wish. Regulatory agencies should be created with the right to enforce consumer protections. He notes the EU’s move to require platform accountability. In general, Doctorow argues that the internet should return to its roots as a space for mutual aid, free expression, and innovation.

Internet Moguls: CEO Google Pichai, CEO Meta Zuckerberg, CEO Apple Cook, Executive Chairman of Amazon Bezos

Doctorow is not the first to propose reform of the internet.

Some time back, Tim Wu, a Columbia law professor, notes that Amazon, Apple, Facebook, and Google had shifted from serving users to extracting value from them. He argued for antitrust enforcement, regulation, and restrictions on content and infrastructure. American Democracy is a safer environment for public media than what is being experienced in countries like China and Russia where all media is tightly controlled by the government. However, Doctorow shows how the American public is being taken advantage of by today’s major private media owners and manipulators.

Doctorow argues for the breakup of internet companies that have become too big. He believes returning the internet to the service of society requires a more level playing field to equitably serve the public.