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Simon Schama on the broken relationship between humans and nature: 'The joke's on us. T... - 0 views

  • Wildlife, intensively fed and bred livestock, and humans to all intents and purposes, now constitute a common planetary reservoir of perpetually evolving and mutating micro-organisms, some of them baleful. The Global Virome Project, established, as its name suggests, to coordinate worldwide research, estimates that there are 1.6m potential zoonotic viruses in the world with just 1% of them currently identified and analysed.
  • All this is happening at ever briefer intervals. Demography remakes geography, transforming – right now, and not for the better – the future of life on Earth.
  • y the end of 2021, up to 18 million people had died, worldwide, from Covid-19 infection, according to some estimates. You would suppose that in the face of a pandemic – an outbreak that by definition is global – together with a recognition of shared vulnerability, governments and politicians might have set aside the usual mutual suspicions and, under the aegis of the WHO, agreed on common approaches to containment, vaccination and control
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  • If anything, the reverse has been the case: responses to the pandemic sharply diverged, even within entities like the European Union, ostensibly committed to common policies.
  • Mercifully, it has not all been a zero-sum game. In late March 2021, 25 world leaders, including Emmanuel Macron, Johnson, Mario Draghi, Angela Merkel, Cyril Ramaphosa, Volodymyr Zelenskiy and the head of the European Council, Charles Michel, as well as the prime ministers of South Korea, Fiji, Thailand, Chile, Senegal and Tunisia – but, depressingly, missing the leaders of the US, Japan, Russia and China – issued a statement explicitly acknowledging the chain linking human and non-human lives and destinies. Invoking the multilateralist idealism of the years following the second world war that sought a reconnected world through the United Nations and agencies like the WHO, they proposed a legally binding international treaty to deal with future pandemics. Such a treaty would embody “an approach that connects the health of humans, animals and our planet”
  • To some extent, the raising of walls, psychological and institutional, is understandable. The instinctive reaction to contagion breaking out somewhere distant is to erect barriers against its importation
  • Before long, any possibility of a clear and honest understanding of the common worldwide conditions that allowed such disasters to happen, not least the biological consequences of environmental degradation, became swallowed up by this default vocabulary of competitive nationalism.
  • two years’ experience of the pandemic, in particular the unpredictable incidence of recurring outbreaks and viral mutations, has made the locking off of discrete zones of exclusion all but impossible. The need for an alternative, transnational approach to containment, mitigation and protection, coordinated by the WHO, has never been more urgent
  • This moment in world history is no less fraught for being so depressingly familiar: the immemorial conflict between “is” and “ought”; between short-term power plays and long-term security; between the habits of immediate gratification and the prospering of future generations; between the cult of individualism and the urgencies of common interest; between the drum beat of national tribalism and the bugle call of global peril; between native instinct and hard-earned knowledge
  • If it is a happy answer you want to the question as to which will prevail, it is probably best not to ask a historian. For history’s findings are more often than not tragic, and its boneyard littered with the remains of high-minded internationalist projects.
  • The appeals of idealists fill whole-page declarations in earnest broadsheets and win funds from far-sighted philanthropic foundations. But the plans and the planners are demonised by the tribunes of gut instinct as suspiciously alien, hatched by cosmopolitan elites: the work of foreign bodies.
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Opinion | The Repeal of Affirmative Action Is Only the Beginning - The New York Times - 0 views

  • Let’s be honest about the painful reality: America has functioned as a full democracy — guaranteeing the franchise to all — for less than one human lifetime. In practice, our democracy is younger than me.
  • I was born in 1959, into an America rived by apartheid
  • During the first two decades of my life, the American people finally acknowledged this truth and, to borrow a phrase, acted affirmatively to address it
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  • In the Court’s majority opinion, Chief Justice John Roberts held that “eliminating racial discrimination means eliminating all of it”—a new version of his old affront that “the way to stop discrimination on the basis of race is to stop discriminating on the basis of race.”
  • This glib framing, and the school of thinking it represents, established a pernicious, false moral equivalence. Those who preserved and protected Jim Crow — the institution that defended America’s old racial hierarchy — were and are something altogether different from those who fought and who continue fighting for a more just America.
  • Those uprooting affirmative action seem content to leave intact systems that compound privilege, exacerbating inequality — like legacy admissions policies that disproportionately favor wealthy, white applicants — resulting in lower-income students and families of all races losing out.
  • I find it regrettable that, over 40 years ago, Justice Lewis Powell introduced the American public to the imperative of diversity in the shallow manner that he did.
  • I was a freshman in college when his seminal opinion in Regents of the University of California v. Bakke (1978) invited some to equate the benefits of diversity with unfairness
  • the idea that necessary diversity initiatives are somehow reverse discrimination or that they correlate with lower standards or lesser outcomes.
  • The data suggests exactly the opposite. Study after study demonstrates that, across organizations, diversity enhances critical thinking, creativity and collaboration, as well as productivity, profitability and performance.
  • we should tell the truth about why diversity is now controversial: Opponents of diversity are opponents of any racial consciousness. They want to prevent us from understanding the ways that the past informs the present, from wrestling with the fullness and richness and complexity of our history.
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Amazon Has Escaped America's Retail Malaise - Bloomberg - 0 views

  • The company’s growing emphasis on third-party selling, a very different business model than the big-box stores’, has helped lift the tech giant while competitors are forced to offer big discounts.
  • While Amazon does sell some items directly, the company is predominantly an online marketplace like EBay Inc., meaning it collects commissions and fees when shoppers purchase things on the site without having to actually buy that inventory. In the three months ended June 30, 57% of all things sold on Amazon came from independent merchants who bear all the inventory risk—the highest that number has ever been.
  • when a merchant selling goods on Amazon cuts prices, Amazon still gets paid—even if that means the company takes a smaller commission on the sales, and even if the merchant loses money. 
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  • Unlike store shelves that have to be physically rearranged, the online marketplace’s search engine surfaces what you want when you want it from a deep inventory of hundreds of millions of products. Meanwhile a big-box store can only carry approximately 100,000 different goods.
  • The marketplace model also helps Amazon shift more quickly to things people want to buy. Its hundreds of thousands of merchants scour search engine trends in real time to know which products they should be selling and when
  • Amazon’s revenue from third-party seller services—a category that includes commissions and fees for things like warehousing, packaging and delivery—increased 9% in the second quarter to $27.38 billion.
  • Another positive note was that subscription services revenue, which is mostly Prime memberships, grew 14% in the quarter, reversing three consecutive quarters of slowing growth—meaning shoppers still see value in the membership, despite a $20 price hike in February to $139 a year.
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The super-rich 'preppers' planning to save themselves from the apocalypse | The super-r... - 0 views

  • at least as far as these gentlemen were concerned, this was a talk about the future of technology.
  • Taking their cue from Tesla founder Elon Musk colonising Mars, Palantir’s Peter Thiel reversing the ageing process, or artificial intelligence developers Sam Altman and Ray Kurzweil uploading their minds into supercomputers, they were preparing for a digital future that had less to do with making the world a better place than it did with transcending the human condition altogether. Their extreme wealth and privilege served only to make them obsessed with insulating themselves from the very real and present danger of climate change, rising sea levels, mass migrations, global pandemics, nativist panic and resource depletion. For them, the future of technology is about only one thing: escape from the rest of us.
  • These people once showered the world with madly optimistic business plans for how technology might benefit human society. Now they’ve reduced technological progress to a video game that one of them wins by finding the escape hatch.
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  • these catastrophising billionaires are the presumptive winners of the digital economy – the supposed champions of the survival-of-the-fittest business landscape that’s fuelling most of this speculation to begin with.
  • What I came to realise was that these men are actually the losers. The billionaires who called me out to the desert to evaluate their bunker strategies are not the victors of the economic game so much as the victims of its perversely limited rules. More than anything, they have succumbed to a mindset where “winning” means earning enough money to insulate themselves from the damage they are creating by earning money in that way.
  • Never before have our society’s most powerful players assumed that the primary impact of their own conquests would be to render the world itself unliveable for everyone else
  • Nor have they ever before had the technologies through which to programme their sensibilities into the very fabric of our society. The landscape is alive with algorithms and intelligences actively encouraging these selfish and isolationist outlooks. Those sociopathic enough to embrace them are rewarded with cash and control over the rest of us. It’s a self-reinforcing feedback loop. This is new.
  • So far, JC Cole has been unable to convince anyone to invest in American Heritage Farms. That doesn’t mean no one is investing in such schemes. It’s just that the ones that attract more attention and cash don’t generally have these cooperative components. They’re more for people who want to go it alone
  • C is no hippy environmentalist but his business model is based in the same communitarian spirit I tried to convey to the billionaires: the way to keep the hungry hordes from storming the gates is by getting them food security now. So for $3m, investors not only get a maximum security compound in which to ride out the coming plague, solar storm, or electric grid collapse. They also get a stake in a potentially profitable network of local farm franchises that could reduce the probability of a catastrophic event in the first place. His business would do its best to ensure there are as few hungry children at the gate as possible when the time comes to lock down.
  • Most billionaire preppers don’t want to have to learn to get along with a community of farmers or, worse, spend their winnings funding a national food resilience programme. The mindset that requires safe havens is less concerned with preventing moral dilemmas than simply keeping them out of sight.
  • Rising S Company in Texas builds and installs bunkers and tornado shelters for as little as $40,000 for an 8ft by 12ft emergency hideout all the way up to the $8.3m luxury series “Aristocrat”, complete with pool and bowling lane. The enterprise originally catered to families seeking temporary storm shelters, before it went into the long-term apocalypse business. The company logo, complete with three crucifixes, suggests their services are geared more toward Christian evangelist preppers in red-state America than billionaire tech bros playing out sci-fi scenarios.
  • Ultra-elite shelters such as the Oppidum in the Czech Republic claim to cater to the billionaire class, and pay more attention to the long-term psychological health of residents. They provide imitation of natural light, such as a pool with a simulated sunlit garden area, a wine vault, and other amenities to make the wealthy feel at home.
  • On closer analysis, however, the probability of a fortified bunker actually protecting its occupants from the reality of, well, reality, is very slim. For one, the closed ecosystems of underground facilities are preposterously brittle. For example, an indoor, sealed hydroponic garden is vulnerable to contamination. Vertical farms with moisture sensors and computer-controlled irrigation systems look great in business plans and on the rooftops of Bay Area startups; when a palette of topsoil or a row of crops goes wrong, it can simply be pulled and replaced. The hermetically sealed apocalypse “grow room” doesn’t allow for such do-overs.
  • while a private island may be a good place to wait out a temporary plague, turning it into a self-sufficient, defensible ocean fortress is harder than it sounds. Small islands are utterly dependent on air and sea deliveries for basic staples. Solar panels and water filtration equipment need to be replaced and serviced at regular intervals. The billionaires who reside in such locales are more, not less, dependent on complex supply chains than those of us embedded in industrial civilisation.
  • If they wanted to test their bunker plans, they’d have hired a security expert from Blackwater or the Pentagon. They seemed to want something more. Their language went far beyond questions of disaster preparedness and verged on politics and philosophy: words such as individuality, sovereignty, governance and autonomy.
  • it wasn’t their actual bunker strategies I had been brought out to evaluate so much as the philosophy and mathematics they were using to justify their commitment to escape. They were working out what I’ve come to call the insulation equation: could they earn enough money to insulate themselves from the reality they were creating by earning money in this way? Was there any valid justification for striving to be so successful that they could simply leave the rest of us behind –apocalypse or not?
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U.K. Energy Price Cap to Rise 80%, Regulator Says - The New York Times - 0 views

  • with leaders from London to Berlin mounting costly state interventions, it augurs a reversal of decades of liberalization in energy markets.
  • France has capped gas and electricity rates, subsidized the cost of gasoline and diesel fuel and spent 45 billion euros ($45 billion) to help hard-hit families.
  • Germany has moved to take command of its energy markets, subsidizing new liquefied gas import terminals and bailing out one of the largest utilities, Uniper,
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  • In Britain, where gas accounts for roughly 40 percent of electricity generation but has a disproportionate effect on its cost
  • if the price of beer had risen as much that of natural gas over the last year, a pint in a pub would cost £25, or about $30.
  • “How can you adapt to a rise like this?” said Tewdos Gebreysus, a 35-year-old Uber driver in London, who said he was now paying four times as much on his energy bills as he was at the beginning of the year.
  • Johnson has left it for his successor to devise a response to the skyrocketing energy costs.
  • She and her opponent, Rishi Sunak, reject more sweeping measures, like using state subsidies to freeze the energy price cap for two years.
  • “We have a sort of worst-of-both-worlds system,” said Jonathan Portes, a professor of a professor of economics and public policy at Kings College London. “Household prices are related to the spot market, and we sort of save up price increases and dump them on households all at once.”
  • Britain is far less dependent on Russian gas than Germany or other European countries. But the structure of its energy market makes it extremely sensitive to fluctuations in the market price of natural gas.
  • The Bank of England has predicted that inflation will peak at 13 percent in October as the new energy prices turn up in household bills. Other estimates are higher; analysts at Citibank have said the rate could reach as high as 18 percent early next year.
  • Britain’s opposition Labour Party recently proposed to freeze energy tariffs where they are now, paying part of the £29 billion cost by increasing the so-called windfall taxes that the Conservative government imposed this year on oil and gas giants operating in the North Sea
  • The leadership contest has been dominated by Ms. Truss’s promise to cut taxes, which is popular with the rank-and-file Conservative Party members who will vote for the next prime minister. But economists say it would do little to protect the most vulnerable people from the ravages of soaring energy bills.
  • With another hefty price increase looming in October, the public outcry over energy costs is likely to haunt the next prime minister. Unless the government develops an effective response, some analysts said, the issue could cripple the government and tilt the next election to the Labour Party.
  • at a campaign gathering with Mr. Sunak on Thursday, she said the solution to the crisis was not to throw more money carelessly at consumers. Mr. Sunak, who has proposed cutting value-added tax on energy bills, warned that without drastic action, “there’s a high risk that millions of people will fall into destitution.
  • Beyond the mechanics of the system, critics said Britain had lagged Germany and other European countries in urging people to reduce energy consumption and increase the efficiency of their homes and offices.
  • “This is the poverty of our politics,” said Tom Burke, the chairman of E3G, an environmental think tank, and a former government adviser. “You’ve got to do some financial work to address the costs in the short term, and then you’ve got to really drive forward on demand reduction in the long run.”
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The Urgent Case for Shrinking the Economy | The New Republic - 0 views

  • A classic example of this dynamic is the advent of the chain saw. A person with a chain saw can cut 10 times as many trees in the same time as a person using older methods. Logging companies did not use this invention, however, to shorten the workweek by 90 percent. They used it to cut 10 times more trees than they otherwise would have. “Lashed by the growth imperative, technology is used not to do the same amount of stuff in less time, but rather to do more stuff in the same amount of time,”
  • The problem, Hickel argues, is explained by the “paradox” first observed by the nineteenth-century economist William Stanley Jevons: In a growth system, gains in efficiency do not translate to higher wages, greater equality, more leisure, or lower emissions; they are plowed right back into the growth cycle
  • Increasing outputs of wind, solar, and other renewables are not leading to a drop in the use of fossil fuels. Instead, renewables and fossil fuels are used to satisfy rising global energy demand. “New fuels aren’t replacing the older ones,” Hickel writes. “They are being added on top of them.”
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  • The economy that Hickel envisions would cease to pursue growth, green or otherwise. Materials and energy will still be consumed, and waste generated, but at much lower levels. All impacts on the natural world will be tethered to the question, “Growth for whom, and to what ends?” In place of an individualistic consumer economy, Hickel’s post-growth economy would direct itself toward the creation of public goods that allow the many to live well—mass transit, health care—rather than to keep a few in luxury.
  • A growing body of research reveals an inverse relationship between “happiness” and growth beyond a certain point.
  • In the rich countries, general contentment peaked in 1950, when GDP and real per capita incomes were fractions of their present size (and inequality near modern historic lows); degrowthers posit that similar happiness levels will be reclaimed on the way back down the economic mountain
  • Hickel describes a post-growth economy defined by stability and equality, and the freedom and leisure possible when the economy is no longer subservient to the god of growth
  • He estimates that the U.S. economy could be scaled down by as much as 65 percent while still improving the lives of its citizens. This includes the metric most often tied to celebrations of endless growth: life expectancy.
  • degrowth will entail a steep reduction across a much wider range of high-energy consumer goods. Keeping a global economy within safe ecological limits is a zero-sum game.
  • When limited resources are directed toward clean energy infrastructure, public health care, and regenerative agriculture, it will still be possible to build and power modern 24-hour hospitals in every city, but not to have Xbox consoles, two-car garages, and giant appliances in every home.
  • would have to redefine it, too.
  • The post-growth economy could not succeed solely by redistributing wealth; it would have to redefine it, too.
  • He argues that short-term growth would have to continue in those countries that have still not achieved the basic levels of sanitation, infrastructure, and education needed for a decent standard of living, to close the gap. Their larger goal, meanwhile, would be to break free from their historical role as a source of natural resources and cheap labor for the north.
  • For degrowth to be just, global, and effective, the sharpest reduction in consumption will have to come from the north, where the greatest damage to the planet is currently being done
  • Ecological economists generally agree that the safe outer limit is eight tons
  • One person in a low-income country has a materials footprint of roughly two tons per year, a measure of total raw materials consumed, including those embodied in imports. In lower-middle–income countries, that number is four tons; in upper-middle–income countries, 12 tons. In the high-income nations of North America, Europe, and Asia, the number leaps to 28
  • The wealthiest 20 percent of the human population is responsible for 90 percent of “overshoot” carbon in the atmosphere (that is, a level of carbon that exceeds the limit needed to keep global temperature rise below 2 degrees Celsius)
  • The planet’s richest one percent has a carbon footprint twice the size of the poorest half of the world’s population combined
  • For the global north, degrowth not only starts at home, it starts with the biggest houses.
  • Less Is More doesn’t end in a poetic appreciation for nature’s majesty, but by teasing out its implications for the political project of preserving a habitable planet. Hickel devotes much of the book to explaining that degrowth must be central to this project, promising not just survival, but real democracy, social abundance, and liberation.
  • Both involve broad social shifts away from private consumption and toward the production of shared public goods.
  • This beautiful coincidence overlaps with policy programs like the Green New Deal in important way
  • In July 1979, shortly after installing a set of solar panels over the West Wing, Jimmy Carter did something peculiar for a peacetime president. He asked Americans to sacrifice: to consume less, take public transit more, value community over material things, and buy bonds to fund domestic energy development, including solar
  • Next to Schumacher’s “Buddhist economics,” Debsian socialism was reformist tinkering. Schumacher didn’t see liberation as a matter of reshuffling the ownership and management structures of the smokestack-powered growth economy. He believed a deeper transformation was needed to maintain a livable planet. This would require new socioecological blueprints “designed for permanence.” As the left and the right battled for control over growth’s levers and spoils, Schumacher pointed out how both had become blind to the rise of growth as its own self-justifying, pan-ideological religion; its patterns of production and consumption, he observed, required “a degree of violence” that did not “fit into the laws of the universe.”
  • They determined that infinite growth was, in fact, impossible on a finite planet. Barring a major course correction, the team projected, growthism would result in an ecological systems breakdown sometime in the middle of the twenty-first century
  • This warning, detailed in the 1972 bestseller The Limits to Growth, has aged better than the scorn heaped on it
  • We are now witnessing what appears to be the beginnings of the collapse predicted nearly 50 years ago
  • In his new book, Less Is More, Jason Hickel, an anthropologist and journalist, attempts to bring a comprehensive critique of growth closer to the center of the conversation, arguing through a sweeping history of capitalism that it’s uncontrolled growth, not its controlled arrest and reversal, that is the preposterous concept.
  • This economic and political revolution was reinforced by a complementary scientific one that displaced the lingering animist cosmology of pre-capitalist Europe. The dualism of Francis Bacon and Descartes held reason to be distinct from and superior to matter.
  • The idea of limitless growth is a relatively recent one. In Less Is More, Hickel traces its origins to the enclosure of the European commons in the sixteenth century
  • Starving refugees were scattered and forced into a new economy defined by neo-feudal servitude and wage labor. Landowners, meanwhile, began amassing great stores of surplus wealth.
  • By the mid-1800s, a new “science” had arisen from these assumptions. Neoclassical economics fully abstracted the economy from the natural world. The economy was geared not toward the creation of a happy and prosperous society, but toward the perpetual growth of wealth as its own end, achieved in an inherently virtuous cycle of converting labor and resources into capital, to be accumulated and reinvested in faster and more productive conversions of labor and resources
  • This ideology subsumed and profaned notions about progress and morality held by the classical economists, until eventually the field even l
  • This process unfolded despite repeated warnings along the way. Classical economists like John Stuart Mill and, to a lesser extent, Adam Smith not only acknowledged the existence of natural limits to growth, but saw economic development as a phase; at some point, they believed, nations would create enough wealth to pursue other definitions of progres
  • the caveats issued by Simon Kuznets, father of the concept adopted in the twentieth century as growth’s universal and signature metric: gross domestic product. Kuznets, Hickel points out, “warned that we should never use GDP as a normal measure of economic progress,” because GDP does not distinguish between productive and destructive behavior
  • Most people encounter the growth debate, if they encounter it at all, through the idea of “green growth.
  • This is a vision for our collective future based on the belief that technological advance will drastically reduce the amount of raw materials needed to sustain growth—a process known as dematerialization—and “decouple” growing GDP from its ecological impacts.
  • boosters of the idea point to the transition by rich countries from manufacturing to service-based economies, as well as efficiency gains in energy and in the use of materials
  • The belief that green growth will save us, also known as “ecomodernism” or “ecopragmatism,” has become a trendy article of faith among elites who acknowledge climate change and the dangers of breaching ecological boundaries
  • n 2017, Barack Obama threw his support behind the idea in an article for Science magazine, maintaining that signs of decoupling in major economies “should put to rest the argument that combatting climate change requires accepting lower growth or a lower standard of living.”
  • The argument that capitalism can grow itself out of the present crisis may be soothing to those who like the world as it is. It also relies on the kind of accounting tricks and rejection of reality
  • By only counting the emissions created within a country that imports most of its cars, washing machines, and computers, you end up pushing the emissions related to their production off the books. When you factor them back in, the picture is much less green. A number of recent studies show no evidence of meaningful decoupling—in energy or materials—even as the world increases its use of renewable energy and finds ways to use some materials more efficiently.
  • Green growth, Hickel concludes, is an ecologically incoherent “fairy tale.”
  • consider what the ecomodernist position asks us to believe. The current system requires annual growth of roughly 3 percent to avoid the shock of recession. This means doubling the size of the economy every 23 years
  • he economy of 2000 must be 20 times larger in the year 2100, and 370 times larger in the year 2200.
  • Hickel is less interested in the macroeconomic details of this future than are growth critics based in economics departments, like Tim Jackson and Kate Raworth, and more focused on the leisure, security, and general human flourish
  • he makes an alluring case that degrowth does not require anything like the “command-and-control fiasco of the Soviet Union, or some back-to-the-caves, hair-shirted disaster of voluntary impoverishment.”
  • Attaining the benefits of the post-growth economy would, however, require what the present consumer society considers “sacrifices.
  • it’s not clear how many of them are ready to give up its superficial pleasures enabled by consumer debt
  • Among nations, there’s also the question of fairness: Wouldn’t it be unjust to impose degrowth across the world, when it’s disproportionately the countries of the global north that have spent centuries burning through the planet’s resources?
  • This output tracks to the one percent’s share of global wealth—a number equal to the GDP of the bottom 169 countries.
  • Even if you accept the argument that inequality would be best addressed by more centuries of trickle-down growth, you keep running up against the simple fact of its impossibility. Even just one more century of growth—which so far has shown no sign of taking a less destructive form—will require multiple earths
  • Hickel is serious about bringing the system critiques of E.F. Schumacher and others out of their traditional cloisters and into the streets, and has sought allies in this effort
  • emphasize what Hickel calls the “beautiful coincidence” of degrowth: that “what we need to do to survive is the same as what we need to do to have better lives.”
  • Both are internationalist in outlook, and see the world through a lens of climate justice as well as climate equilibrium.
  • that is, communicating the many benefits of moving beyond the insecurity and terrors of the current system, and building a new society that is sustainable, stable, democratic, and fundamentally better in every way.
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Opinion | Biden Trade Policy Breaks With Tech Giants - The New York Times - 0 views

  • One reason that the idea of free trade has fallen out of fashion in recent years is the perception that trade agreements reflect the wishes of big American corporations, at everybody else’s expense.
  • U.S. officials fought for trade agreements that protect intellectual property — and drug companies got the chance to extend the life of patents, raising the price of medicine around the world. U.S. officials fought for investor protections — and mining companies got the right to sue for billions in “lost profit” if a country moved to protect its drinking water or the Amazon ecosystem. And for years, U.S. officials have fought for digital trade rules that allow data to move freely across national borders — prompting fears that the world’s most powerful tech companies would use those rules to stay ahead of competitors and shield themselves from regulations aimed at protecting consumers and privacy.
  • That’s why the Biden administration, which came into office promising to fight for trade agreements that better reflect the interests of ordinary people, has dropped its advocacy for tech-friendly digital trade rules that American officials have championed for more than a decade.
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  • Last month, President Biden’s trade representative, Katherine Tai, notified the World Trade Organization that the American government no longer supported a proposal it once spearheaded that would have exported the American laissez-faire approach to tech. Had that proposal been adopted, it would have spared tech companies the headache of having to deal with many different domestic laws about how data must be handled, including rules mandating that it be stored or analyzed locally. It also would have largely shielded tech companies from regulations aimed at protecting citizens’ privacy and curbing monopolistic behavior.
  • The move to drop support for that digital trade agenda has been pilloried as disaster for American companies and a boon to China, which has a host of complicated restrictions on transferring data outside of China. “We have warned for years that either the United States would write the rules for digital trade or China would,” Senator Mike Crapo, a Republican from Idaho, lamented in a press statement. “Now, the Biden administration has decided to give China the pen.”
  • While some of this agenda is reasonable and good for the world — too much regulation stifles innovation — adopting this agenda wholesale would risk cementing the advantages that big American tech companies already enjoy and permanently distorting the market in their favor.
  • who used to answer the phone and interact with lobbyists at the U.S. trade representative’s office. The paper includes redacted emails between Trump-era trade negotiators and lobbyists for Facebook, Google, Microsoft and Amazon, exchanging suggestions for the proposed text for the policy on digital trade in the United States-Mexico-Canada Agreement. “While they were previously ‘allergic to Washington,’ as one trade negotiator described, over the course of a decade, technology companies hired lobbyists and joined trade associations with the goal of proactively influencing international trade policy,” Ms. Li wrote in the Socio-Economic Review.
  • That paper explains how U.S. trade officials came to champion a digital trade policy agenda that was nearly identical to what Google, Apple and Meta wanted: No restrictions on the flow of data across borders. No forced disclosure of source codes or algorithms in the normal course of business. No laws that would curb monopolies or encourage more competition — a position that is often cloaked in clauses prohibiting discrimination against American companies. (Since so many of the monopolistic big tech players are American, rules targeting such behavior disproportionately fall on American companies, and can be portrayed as unfair barriers to trade.)
  • This approach essentially takes the power to regulate data out of the hands of governments and gives it to technology companies, according to research by Henry Gao, a Singapore-based expert on international trade.
  • The truth is that Ms. Tai is taking the pen away from Meta, Google and Amazon, which helped shape the previous policy, according to a research paper published this year by Wendy Li,
  • Many smaller tech companies complain that big players engage in monopolistic behavior that should be regulated. For instance, Google has been accused of privileging its own products in search results, while Apple has been accused of charging some developers exorbitant fees to be listed in its App Store. A group of smaller tech companies called the Coalition for App Fairness thanked Ms. Tai for dropping support for the so-called tech-friendly agenda at the World Trade Organization.
  • Still, Ms. Tai’s reversal stunned American allies and foreign business leaders and upended negotiations over digital trade rules in the Indo-Pacific Economic Framework, one of Mr. Biden’s signature initiatives in Asia.
  • The about-face was certainly abrupt: Japan, Singapore and Australia — which supported the previous U.S. position — were left on their own. It’s unfortunate that U.S. allies and even some American officials were taken by surprise. But changing stances was the right call.
  • The previous American position at the World Trade Organization was a minority position. Only 34 percent of countries in the world have open data transfer policies like the United States, according to a 2021 World Bank working paper, while 57 percent have adopted policies like the European Union’s, which allow data to flow freely but leave room for laws that protect privacy and personal data.
  • Nine percent of countries have restrictive data transfer policies, including Russia and China.
  • The United States now has an opportunity to hammer out a sensible global consensus that gives tech companies what they need — clarity, more universal rules, and relative freedom to move data across borders — without shielding them from the kinds of regulations that might be required to protect society and competition in the future.
  • If the Biden administration can shepherd a digital agreement that strikes the right balance, there’s a chance that it will also restore faith in free trade by showing that trade agreements don’t have to be written by the powerful at the expense of the weak.
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Opinion | The Reactionary Futurism of Marc Andreessen - The New York Times - 0 views

  • “I consider Mark and Elon to be role models to children in their embrace of fighting,” Andreessen writes.
  • Modern American society, at least in the big cities, is turning on law enforcement and tolerating crime, so you need combat skills to protect your loved ones. We are also fat and depressed, and learning to fight might help on both counts. In conclusion, “if it was good enough for Heracles and Theseus, it’s good enough for us.”
  • what caught my eye was the veneration of the virile aggression of the Greeks, the call to rediscover the ways of the ancients. A list of things that were good enough for the Greeks but not good enough for us would run long: Slavery, pederasty and bloodletting come to mind
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  • This is what connects figures as disparate as Jordan Peterson and J.D. Vance and Peter Thiel and Donald Trump. These are the ideas that unite both the mainstream and the weirder figures of the so-called postliberal right, from Patrick Deneen to the writer Bronze Age Pervert.
  • I think the Republican Party’s collapse into incoherence reflects the fact that much of the modern right is reactionary, not conservative
  • As Paul Valéry, the French poet, once said, “Ancient Greece is the most beautiful invention of the modern age.” To treat Andreessen’s essay as an argument misses the point. It’s a vibe. And the vibe is reactionary.
  • It’s a coalition obsessed with where we went wrong: the weakness, the political correctness, the liberalism, the trigger warnings, the smug elites. It’s a coalition that believes we were once hard and have become soft; worse, we have come to lionize softness and punish hardness.
  • The story of the reactionary follows a template across time and place. It “begins with a happy, well-ordered state where people who know their place live in harmony and submit to tradition and their God,” Mark Lilla writes in his 2016 book, “The Shipwrecked Mind: On Political Reaction.”
  • He continues:Then alien ideas promoted by intellectuals — writers, journalists, professors — challenge this harmony, and the will to maintain order weakens at the top. (The betrayal of elites is the linchpin of every reactionary story.) A false consciousness soon descends on the society as a whole as it willingly, even joyfully, heads for destruction. Only those who have preserved memories of the old ways see what is happening. Whether the society reverses direction or rushes to its doom depends entirely on their resistance.
  • The Silicon Valley cohort Andreessen belongs to has added a bit to this formula. In their story, the old way that is being lost is the appetite for risk and inequality and dominance that drives technology forward and betters human life. What the muscled ancients knew and what today’s flabby whingers have forgotten is that man must cultivate the strength and will to master nature, and other men, for the technological frontier to give way
  • Now Andreessen has distilled the whole ideology to a procession of stark bullet points in his latest missive, the buzzy, bizarre “Techno-Optimist Manifesto.”
  • it’s the pairing of the reactionary’s sodden take on modern society with the futurist’s starry imagining of the bright tomorrow. So call it what it is: reactionary futurism
  • Andreessen’s argument is simple: Technology is good. Very good. Those who stand in its way are bad.
  • “The Enemy.” The list is long, ranging from “anti-greatness” to “statism” to “corruption” to “the ivory tower” to “cartels” to “bureaucracy” to “socialism” to “abstract theories” to anyone “disconnected from the real world … playing God with everyone else’s lives”
  • So who is it, exactly, who extinguishes the dancing star within the human soul?
  • Our present society has been subjected to a mass demoralization campaign for six decades — against technology and against life — under varying names like “existential risk,” “sustainability,” “E.S.G.,” “sustainable development goals,” “social responsibility,” “stakeholder capitalism,” “precautionary principle,” “trust and safety,” “tech ethics,” “risk management,” “degrowth,” “the limits of growth.”
  • The enemy, in other words, is anything or anyone who might seek to yoke technology to social goals or structures
  • For years, I’ve been arguing for politics to take technology more seriously, to see new inventions as no less necessary than social insurance and tax policy in bringing about a worthier world. Too often, we debate only how to divvy up what we already have. We have lost the habit of imagining what we could have; we are too timid in deploying the coordinated genius and muscle of society
  • I’ve been digging into the history of where and when we lost faith in technology and, more broadly, growth. At the core of that story is an inability to manage, admit or even see when technologies or policies go awry
  • The turn toward a less-is-more politics came in the 1970s, when the consequences of reckless growth became unignorable
  • Did we, in some cases, overcorrect? Absolutely. But the only reason we can even debate whether we overcorrected is because we corrected: The Clean Air Act and the Clean Water Act and a slew of other bills and regulations did exactly what they promised.
  • It is telling that Andreessen groups sustainability and degrowth into the same bucket of antagonists
  • Degrowth is largely, though not wholly, skeptical of technological solutions to our problems
  • But the politics of sustainability — as evidenced in legislation like the Inflation Reduction Act — have settled into another place entirely: a commitment to solving our hardest environmental problems by driving technology forward, by investing and deploying clean energy infrastructure at a scale unlike anything the government has done since the 1950s.
  • Andreessen focuses at some length on the nuclear future he believes we’ve been denied —
  • but curiously ignores the stunning advances in solar and wind and battery power that public policy has delivered.
  • He yearns for a kind of person, not just a kind of technology. “We believe in ambition, aggression, persistence, relentlessness — strength,” he writes, italics included. “We believe in merit and achievement. We believe in bravery, in courage.”
  • There are ways in which these virtues have become undervalued, in which the left, in particular, has a dysfunctional relationship with individual achievement and entrepreneurial élan.
  • Andreessen’s ideas trace an odd, meme-based philosophy that has flourished in some corners of the internet known as effective accelerationism
  • “Effective accelerationism aims to follow the ‘will of the universe’: leaning into the thermodynamic bias towards futures with greater and smarter civilizations that are more effective at finding/extracting free energy from the universe,”
  • “E/acc has no particular allegiance to the biological substrate for intelligence and life, in contrast to transhumanism.” OK!
  • Take Andreessen’s naming of trust and safety teams as among his enemies.
  • That, in a way, is my core disagreement with Andreessen. Reactionary futurism is accelerationist in affect but deccelerationist in practice
  • How has that worked out? A new analysis by Similarweb found that traffic to twitter.com fell in the United States by 19 percent from September 2022 to September 2023 and traffic on mobile devices fell by almost 18 percent. Indications are that advertising revenue on the platform is collapsing.
  • Andreessen spends much of his manifesto venerating the version of markets that you hear in the first few weeks of Econ 101, before the professor begins complicating the picture with all those annoying market failures
  • Throughout his essay, Andreessen is at pains to attack those who might slow the development of artificial intelligence in the name of safety, but nothing would do more to freeze progress in A.I. than a disaster caused by its reckless deployment
  • It is hard to read Andreessen’s manifesto, with its chopped-up paragraphs and its blunt jabs of thought delivered for maximum engagement and polarization, and not feel that Andreessen now reflects the medium in which he has made his home: X. He doesn’t just write in the way the medium rewards. He increasingly seems to think in its house style, too.
  • One reason I left Twitter long ago is that I noticed that it was a kind of machine for destroying trust. It binds you to the like-minded but cuts you from those with whom you have even modest disagreements
  • There is a reason that Twitter’s rise was conducive to politics of revolution and reaction rather than of liberalism and conservatism. If you are there too often, seeing the side of humanity it serves up, it is easy to come to think that everything must be burned down.
  • Musk purchased Twitter (in an acquisition that Andreessen Horowitz helped finance) and gutted its trust and safety teams. The result has been a profusion of chaos, disinformation and division on his platform
  • Treating so much of society with such withering contempt will not speed up a better future. It will turn people against the politics and policies of growth, just as it did before. Trust is the most essential technology of all.
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Opinion | With War Raging, Colleges Confront a Crisis of Their Own Making - The New Yor... - 0 views

  • Students, meanwhile, have blasted those administrators for saying too much or too little. They’ve complained about feeling stranded.
  • The tense situation largely reflects the intense differences of opinion with which many onlookers, including students, interpret and react to the rival claims and enduring bloodshed in the Middle East. But it tells another story, too: one about the evolution of higher education over the past quarter-century, the promises that schools increasingly make to their students and the expectations that arise from that.
  • Many students now turn to the colleges they attend for much more than intellectual stimulation. They look for emotional affirmation. They seek an acknowledgment of their wounds along with the engagement of their minds
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  • Also, college students aren’t full-fledged grown-ups. They do need guidance, and they benefit from it.
  • “The campus protests of the late 1960s sought in part to dismantle the in loco parentis role that colleges and universities had held in American life. But the past two decades have been shaped by a reversal of that, as institutions have sought to reconstruct this role in response to what students and parents paying enormous sums for their education have seemed to want.”
  • For us professors, the surrogate-parent paradigm means regular emails and other reminders from administrators that we should be taking our students’ temperatures, watching for glimmers of distress, intervening proactively and fashioning accommodations, especially if there has been some potentially discomfiting global, national or local news event
  • where does reasonable consideration end and unreasonable coddling begin? And what do validation and comfort have to do with learning?
  • Arguably, everything. If you’re not mentally healthy, you’ll be harder pressed to do the reading, writing and critical thinking at the core of college work
  • many schools have encouraged that mind-set, casting themselves as stewards of students’ welfare, guarantors of their safety, places of refuge, precincts of healing.
  • But are we responsibly preparing them for the world after college — and for the independence, toughness, resourcefulness and resilience it will almost surely demand of them — when we too easily dole out A’s, too readily grant extensions, too gingerly deliver critiques, and too quickly wonder and sound alarms about any disturbance in the atmosphere?
  • We keep witnessing episodes of students taking their colleges to task in ways that smack of entitlement and fragility and are out of bounds
  • Hamline’s president, Fayneese Miller, defended that sequence of events by saying that to not weigh academic freedom against a “debt to the traditions, beliefs and views of students” is a “privileged reaction.”
  • That’s a troubling assertion, as Tom Nichols wrote in The Atlantic: “If you don’t want your traditions, beliefs or views challenged, then don’t come to a university, at least not to study anything in the humanities or the social sciences.”
  • The school is a merchant, a kind of department store, or so a student could easily assume, based on the come-ons from affluent colleges competing with one another for applicants. They peddle tantalizing dining options, themed living arrangements, diverse amusements. They assign students the role of discerning customers. And the customer is always right.
  • But in an educational environment, that credo is all wrong, because learning means occasionally being provoked, frequently being unsettled and regularly being yanked outside of your comfort zone,
  • most students can handle that dislocation — if they’re properly prepped for it, if they’re made to understand its benefits. We shortchange them when we sell them short
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I Was a Useful Idiot for Capitalism - The Atlantic - 0 views

  • From my parents’ teenage years in the 1930s and ’40s through my teenage years in the 1970s, American economic life became a lot more fair and democratic and secure than it had been when my grandparents were teenagers. But then all of a sudden, around 1980, that progress slowed, stopped, and in many ways reversed.
  • I read an article about that year’s record-setting bonuses on Wall Street. The annual revenues of Goldman Sachs were greater than the annual economic output of two-thirds of the countries on Earth—a treasure chest from which the firm was disbursing the equivalent of $69 million to its CEO and an average of $800,000 each to everybody else at the place.
  • “This is not the America in which we grew up,” I wrote in a magazine column at the time, by which I meant America of the several very prosperous decades after World War II, when the income share of the super-rich was not yet insanely high. Since the 1980s, the portion of income taken each year by the rich had become as hugely disproportionate as it had been in the 1920s, with CEOs paid several hundred times more than the average worker, whose average income had barely budged for decades. “We’ve not only let economic uncertainty and unfairness grow to grotesque extremes,” I wrote, but “also inured ourselves to the spectacle.”
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  • Mea culpa. For those past two decades, I’d prospered and thrived in the new political economy. And unharmed by automation or globalization or the new social contract, I’d effectively ignored the fact that the majority of my fellow Americans weren’t prospering or thriving.
  • And I and my cohort of hippie-to-yuppie liberal Baby Boomers were complicit in that.
  • Economic inequality has reverted to the levels of a century ago and earlier, and so has economic insecurity, while economic immobility is almost certainly worse than it’s ever been.
  • What’s happened since the 1970s and ’80s didn’t just happen. It looks more like arson than a purely accidental fire, more like poisoning than a completely natural illness, more like a cheating of the many by the few—and although I’ve always been predisposed to disbelieve conspiracy theories, this amounts to a long-standing and well-executed conspiracy, not especially secret, by the leaders of the capitalist class, at the expense of everyone else.
  • In 40 years, the share of wealth owned by our richest 1 percent has doubled, the collective net worth of the bottom half has dropped to almost zero, the median weekly pay for a full-time worker has increased by just 0.1 percent a year, only the incomes of the top 10 percent have grown in sync with the economy, and so on
  • A union? Sure, fine. But I was talent. I was creative. I was an individual. College graduates tend to think of themselves that way, younger ones all the more, younger Baby Boomers at the time probably the most ever. And the intensified, all-encompassing individualism that blew up during the 1960s—I do my thing, and you do your thing—was not a mindset or temperament that necessarily reinforced feelings of solidarity with fellow workers or romantic feelings about unions.
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How OnlyFans top earner Bryce Adams makes millions selling a sex fantasy - Washington Post - 0 views

  • In the American creator economy, no platform is quite as direct or effective as OnlyFans. Since launching in 2016, the subscription site known primarily for its explicit videos has become one of the most methodical, cash-rich and least known layers of the online-influencer industry, touching every social platform and, for some creators, unlocking a once-unimaginable level of wealth.
  • More than 3 million creators now post around the world on OnlyFans, which has 230 million subscribing “fans” — a global audience two-thirds the size of the United States itself
  • fans’ total payouts to creators soared last year to $5.5 billion — more than every online influencer in the United States earned from advertisers that year,
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  • If OnlyFans’s creator earnings were taken as a whole, the company would rank around No. 90 on Forbes’s list of the biggest private companies in America by revenue, ahead of Twitter (now called X), Neiman Marcus Group, New Balance, Hard Rock International and Hallmark Cards.
  • Many creators now operate like independent media companies, with support staffs, growth strategies and promotional budgets, and work to apply the cold quantification and data analytics of online marketing to the creation of a fantasy life.
  • The subscription site has often been laughed off as a tabloid punchline, a bawdy corner of the internet where young, underpaid women (teachers, nurses, cops) sell nude photos, get found out and lose their jobs.
  • pressures to perform for a global audience; an internet that never forgets. “There is simply no room for naivety,” one said in a guide posted to Reddit’s r/CreatorsAdvice.
  • America’s social media giants for years have held up online virality as the ultimate goal, doling out measurements of followers, reactions and hearts with an unspoken promise: that internet love can translate into sponsorships and endorsement deals
  • But OnlyFans represents the creator economy at its most blatantly transactional — a place where viewers pay upfront for creators’ labor, and intimacy is just another unit of content to monetize.
  • The fast ascent of OnlyFans further spotlights how the internet has helped foster a new style of modern gig work that creators see as safe, remote and self-directed,
  • Creators’ nonchalance about the digital sex trade has fueled a broader debate about whether the site’s promotion of feminist autonomy is a facade: just a new class of techno-capitalism, selling the same patriarchal dream.
  • But OnlyFans increasingly has become the model for how a new generation of online creators gets paid. Influencers popular on mainstream sites use it to capitalize on the audiences they’ve spent years building. And OnlyFans creators have turned going viral on the big social networks into a marketing strategy, using Facebook, Twitter and TikTok as sales funnels for getting new viewers to subscribe.
  • many creators, she added, still find it uniquely alluring — a rational choice in an often-irrational environment for gender, work and power. “Why would I spend my day doing dirty, degrading, minimum-wage labor when I can do something that brings more money in and that I have a lot more control over?”
  • it is targeting major “growth regions” in Latin America, Europe and Australia. (The Mexican diver Diego Balleza said he is using his $15-a-month account to save up for next year’s Paris Olympics.)
  • “Does an accountant always enjoy their work? No. All work has pleasure and pain, and a lot of it is boring and annoying. Does that mean they’re being exploited?”
  • Adams’s operation is registered in state business records as a limited liability company and offers quarterly employee performance reviews and catered lunch. It also runs with factory-like efficiency, thanks largely to a system designed in-house to track millions of data points on customers and content and ensure every video is rigorously planned and optimized.
  • Since sending her first photo in 2021, Adams’s OnlyFans accounts have earned $16.5 million in sales, more than 1.4 million fans and more than 11 million “likes.” She now makes about $30,000 a day — more than most American small businesses — from subscriptions, video sales, messages and tips, half of which is pure profit
  • Adams’s team sees its business as one of harmless, destigmatized gratification, in which both sides get what they want. The buyers are swiped over in dating apps, widowed, divorced or bored, eager to pay for the illusion of intimacy with an otherwise unattainable match. And the sellers see themselves as not all that different from the influencers they watched growing up on YouTube, charging for parts of their lives they’d otherwise share for free.
  • “This is normal for my generation, you know?
  • “I can go on TikTok right now and see ten girls wearing the bare minimum of clothing just to get people to join their page. Why not go the extra step to make money off it?”
  • the job can be financially precarious and mentally taxing, demanding not just the technical labor of recording, editing, managing and marketing but also the physical and emotional labor of adopting a persona to keep clients feeling special and eager to spend.
  • enix International Limited, is based, the company said its sales grew from $238 million in 2019 to more than $5.5 billion last year.
  • Its international army of creators has also grown from 348,000 in 2019 to more than 3 million today — a tenfold increase.
  • The company paid its owner, the Ukrainian American venture capitalist Leonid Radvinsky, $338 million in dividends last year.)
  • portion of its creator base and 70 percent of its annual revenue
  • When Tim Stokely, a London-based operator of live-cam sex sites, founded OnlyFans with his brother in 2016, he framed it as a simple way to monetize the creators who were becoming the world’s new celebrities — the same online influencers, just with a payment button. In 2019, Stokely told Wired magazine that his site was like “a bolt-on to your existing social media,” in the same way “Uber is a bolt-on to your car.”
  • Before OnlyFans, pornography on the internet had been largely a top-down enterprise, with agents, producers, studios and other middlemen hoarding the profits of performers’ work. OnlyFans democratized that business model, letting the workers run the show: recording their own content, deciding their prices, selling it however they’d like and reaping the full reward.
  • The platform bans real-world prostitution, as well as extreme or illegal content, and requires everyone who shows up on camera to verify they’re 18 or older by sending in a video selfie showing them holding a government-issued ID.
  • OnlyFans operates as a neutral marketplace, with no ads, trending topics or recommendation algorithms, placing few limitations on what creators can sell but also making it necessary for them to market themselves or fade away.
  • After sending other creators’ agents their money over PayPal, Adams’s ad workers send suggestions over the messaging app Telegram on how Bryce should be marketed, depending on the clientele. OnlyFans models whose fans tend to prefer the “girlfriend experience,” for instance, are told to talk up her authenticity: “Bryce is a real, fit girl who wants to get to know you
  • Like most platforms, OnlyFans suffers from a problem of incredible pay inequality, with the bulk of the profits concentrated in the bank accounts of the lucky few.
  • the top 1 percent of accounts made 33 percent of the money, and that most accounts took home less than $145 a month
  • Watching their partner have sex with someone else sometimes sparked what they called “classic little jealousy issues,” which Adams said they resolved with “more communication, more growing up.” The money was just too good. And over time, they adopted a self-affirming ideology that framed everything as just business. Things that were tough to do but got easier with practice, like shooting a sex scene, they called, in gym terms, “reps.” Things one may not want to do at first, but require some mental work to approach, became “self-limiting beliefs.”
  • They started hiring workers through friends and family, and what was once just Adams became a team effort, in which everyone was expected to workshop caption and video ideas. The group evaluated content under what Brian, who is 31, called a “triangulation method” that factored their comfort level with a piece of content alongside its engagement potential and “brand match.” Bryce the person gave way to Bryce the brand, a commercialized persona drafted by committee and refined for maximum marketability.
  • One of the operation’s most subtly critical components is a piece of software known as “the Tool,” which they developed and maintain in-house. The Tool scrapes and compiles every “like” and view on all of Adams’s social network accounts, every OnlyFans “fan action” and transaction, and every text, sext and chat message — more than 20 million lines of text so far.
  • It houses reams of customer data and a library of preset messages that Adams and her chatters can send to fans, helping to automate their reactions and flirtations — “an 80 percent template for a personalized response,” she said.
  • And it’s linked to a searchable database, in which hundreds of sex scenes are described in detail — by price, total sales, participants and general theme — and given a unique “stock keeping unit,” or SKU, much like the scannable codes on a grocery store shelf. If a fan says they like a certain sexual scenario, a team member can instantly surface any relevant scenes for an easy upsell. “Classic inventory chain,” Adams said.
  • The systemized database is especially handy for the young women of Adams’s chat team, known as the “girlfriends,” who work at a bench of laptops in the gym’s upper loft. The Tool helped “supercharge her messaging, which ended up, like, 3X-ing her output,” Brian said, meaning it tripled.
  • Keeping men talking is especially important because the chat window is where Adams’s team sends out their mass-message sales promotions, and the girlfriends never really know what to expect. One girlfriend said she’s had as many as four different sexting sessions going at once.
  • Adams employs a small team that helps her pay other OnlyFans creators to give away codes fans can use for free short-term trials. The team tracks redemption rates and promotional effectiveness in a voluminous spreadsheet, looking for guys who double up on discount codes, known as “stackers,” as well as bad bets and outright fraud.
  • Many OnlyFans creators don’t offer anything explicit, and the site has pushed to spotlight its stable of chefs, comedians and mountain bikers on a streaming channel, OFTV. But erotic content on the platform is inescapable; even some outwardly conventional creators shed their clothes behind the paywall
  • Creators with a more hardcore fan base, meanwhile, are told to cut to the chase: “300+ sex tapes & counting”; “Bryce doesn’t say no, she’s the most wild, authentic girl you will ever find.”
  • The $18 an hour she makes on the ad team, however, is increasingly dwarfed by the money Leigh makes from her personal OnlyFans account, where she sells sex scenes with her boyfriend for $10 a month. Leigh made $92,000 in gross sales in July, thanks largely to revenue from new fans who found her through Adams or the bikini videos Leigh posts to her 170,000-follower TikTok account
  • “This is a real job. You dedicate your time to it every single day. You’re always learning, you’re always doing new things,” she said. “I’d never thought I’d be good at business, but learning all these business tactics really empowers you. I have my own LLC; I don’t know any other 20-year-old right now that has their own LLC.”
  • The team is meeting all traffic goals, per their internal dashboard, which showed that through the day on a recent Thursday they’d gained 2,221,835 video plays, 19,707 landing-page clicks, 6,372 new OnlyFans subscribers and 9,024 new social-network followers. And to keep in shape, Adams and her boyfriend are abiding by a rigorous daily diet and workout plan
  • They eat the same Chick-fil-A salad at every lunch, track every calorie and pay a gym assistant to record data on every rep and weight of their exercise.
  • But the OnlyFans business is competitive, and it does not always feel to the couple like they’ve done enough. Their new personal challenge, they said, is to go viral on the other platforms as often as possible, largely through jokey TikTok clips and bikini videos that don’t give away too much.
  • the host told creators this sales-funnel technique was key to helping build the “cult of you”: “Someone’s fascination will become infatuation, which will make you a lot of money.”
  • Adams’s company has worked to reverse engineer the often-inscrutable art of virality, and Brian now estimates Adams makes about $5,000 in revenue for every million short-form video views she gets on TikTok.
  • Her team has begun ranking each platform by the amount of money they expect they can get from each viewer there, a metric they call “fan lifetime value.” (Subscribers who click through to her from Facebook tend to spend the most, the data show. Facebook declined to comment.)
  • The younger workers said they see the couple as mentors, and the two are constantly reminding them that the job of a creator is not a “lottery ticket” and requires a persistent grind. Whenever one complains about their lack of engagement, Brian said he responds, “When’s the last time you posted 60 different videos, 60 days in a row, on your Instagram Reels?”
  • But some have taken to it quite naturally. Rayna Rose, 19, was working last year at a hair salon, sweeping floors for $12 an hour, when an old high school classmate who worked with Adams asked whether she wanted to try OnlyFans and make $500 a video.
  • Rose started making videos and working as a chatter for $18 an hour but recently renegotiated her contract with Adams to focus more on her personal OnlyFans account, where she has nearly 30,000 fans, many of whom pay $10 a month.
  • One recent evening this summer, Adams was in the farm’s gym when her boyfriend told her he was headed to their guest room to record a collab with Rose, who was wearing a blue bikini top and braided pigtails.
  • “Go have fun,” Adams told them as they walked away. “Make good content.” The 15-minute video has so far sold more than 1,400 copies and accounted for more than $30,000 in sales.
  • Rose said she has lost friends due to her “lifestyle,” with one messaging her recently, “Can you imagine how successful you would be if you studied regularly and spent your time wisely?”
  • The message stung but, in Rose’s eyes, they didn’t understand her at all. She feels, for the first time, like she has a sense of purpose: She wants to be a full-time influencer. She expects to clear $200,000 in earnings this year and is now planning to move out of her parents’ house.
  • “I had no idea what I wanted to do with my life. And now I know,” she said. “I want to be big. I want to be, like, mainstream.”
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Opinion | U.S. Military Aid Is Killing Civilians in Gaza - The New York Times - 0 views

  • The United States currently provides Israel with at least $3.8 billion in annual military assistance, the most to any country per year, with the recent exception of Ukraine. High levels of assistance date back roughly to the 1970s and reflect a longstanding American bargain with Israel of security for peace — the notion that the more secure Israel feels, the more concessions it will be able to make to the Palestinians.
  • Since the mid-1990s, the United States has also been a major sponsor of the Ramallah-based Palestinian Authority Security Forces, providing training and equipment on the theory that as the Palestinians stand up, the Israelis can stand down.
  • In both cases, the rationale for U.S. security assistance is fatally flawed.
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  • On the Israeli side, blind U.S. security guarantees have not provided a path to peace. Instead, they have provided Israel with the reassurance that it can engage in increasingly destructive efforts, such as the expansion of illegal settlements in the West Bank, without any real consequences.
  • At the same time, Israel has become a global leader in weapons exports and boasts one of the most technologically sophisticated militaries in the world. All of these factors have created a sense among Israeli policymakers that they can indefinitely contain — physically and politically — the Palestinian question.
  • Nowhere is this more apparent than in the recent efforts, driven by the United States, first under the Trump administration and continuing under President Biden, to pursue normalization between Israel and the Arab world. While in many ways this normalization is long overdue, it has been premised on the notion that economic incentives — and a shared regional security interest in deterring malign Iranian influence — can integrate Israel, indefinite occupation and all, into the Arab world.
  • This premise has been shattered — likely intentionally on Hamas’s part — by the Gaza conflict and its rapid recentering of the Palestinian cause on a global stage.
  • As civilian deaths in Gaza and the West Bank continue to mount, it is clear any sort of Saudi normalization agreement with Israel that does not also include substantive progress on a political solution for the Palestinian cause will be difficult to advance.
  • Under the Leahy laws, the United States is prohibited from providing security assistance to any unit that is credibly accused of having committed a gross violation of human rights. Unlike almost all other recipients, which are vetted along these lines before they receive assistance, for Israel the process is reversed: The assistance is provided, and the United States then waits to receive reports of violations, assessing their credibility through a process known as the Israel Leahy vetting forum, which includes consultation with the government of Israel.
  • To date, the forum has never come to consensus that any Israeli security force unit or soldier has committed a gross violation of human rights — despite the findings of international human rights organizations
  • the U.S. failure to impose accountability on Israel for such violations may provide Israel with a sense of impunity, increasing the likelihood of gross violations of human rights (including those committed by settlers against Palestinian civilians) and further breaking the trust between Israel and Palestinians that would be needed for any sort of lasting peace.
  • Working on the ground with the authority, I saw how the major focus of U.S. efforts was to prove to the Israel Defense Forces that their Palestinian counterparts could be trusted to take on the mission of securing Israel
  • Palestinian intelligence officials would be provided with target information by Israel, and Palestinian forces would be expected to take on missions previously conducted by the Israel Defense Forces to detain those targets. This effort not only undermined Palestinian support for the authority but also failed to convince the Israelis, who saw any Palestinian courts’ (correct) refusal to hold Palestinian detainees without due process as proof of a revolving door in the system.
  • Even worse, in 2008 and ’09, when Israel’s Operation Cast Lead, which resulted in over 1,300 Palestinian deaths in Gaza, sparked protests in the West Bank, it was the Palestinian Authority Security Forces that physically stood between demonstrators and the Israel Defense Forces. From my balcony in Ramallah, I saw this as a proof of success and reported as much to Washington at the time. In hindsight, it was perhaps the death knell for the legitimacy of the Palestinian Authority in the eyes of its people.
  • If the United States is to continue to employ military and security assistance as a tool of its engagement in the Israeli-Palestinian conflict (and there are good arguments why it should not), it must change its approach significantly. One way to do this would be simply by applying the laws and policies that it applies to every other country in the world: There is no point in having leverage that could pressure Israel to cease actions that undermine peace if we refuse to even consider using it
  • The United States could also start conditioning its military assistance to Israel (as it does for many other recipients) on certain verifiable political conditions being met. In Israel’s case, these may include a halt to or dismantling of settlement infrastructure in the West Bank.
  • Another thing the U.S. might do is consider reframing its security assistance on the Palestinian side to reinforce, rather than undermine, the legitimacy of the Palestinian Authority
  • Doing so would require structuring assistance in a way that enables Palestinian society control over its own security forces. It would also require the recognition of Palestinian statehood
  • I resigned from my job because I do not believe that U.S. arms should be provided in a situation if we know they are more likely than not — in the words of the Biden administration’s own guiding policy — to lead to or to aggravate the risk of human rights violations, including widespread civilian harm and death.
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Steven Pinker's five-point plan to save Harvard from itself - 0 views

  • The fury was white-hot. Harvard is now the place where using the wrong pronoun is a hanging offense but calling for another Holocaust depends on context. Gay was excoriated not only by conservative politicians but by liberal alumni, donors, and faculty, by pundits across the spectrum, even by a White House spokesperson and by the second gentleman of the United States. Petitions demanding her resignation have circulated in Congress, X, and factions of the Harvard community, and at the time of this writing, a prediction market is posting 1.2:1 odds that she will be ousted by the end of the year.
  • I don’t believe that firing Gay is the appropriate response to the fiasco. It wasn’t just Gay who fumbled the genocide question but two other elite university presidents — Sally Kornbluth of MIT (my former employer) and Elizabeth Magill of the University of Pennsylvania, who resigned following her testimony — which suggests that the problem with Gay’s performance betrays a deeper problem in American universities.
  • Gay interpreted the question not at face value but as pertaining to whether Harvard students who had brandished slogans like “Globalize the intifada” and “From the river to the sea,” which many people interpret as tantamount to a call for genocide, could be prosecuted under Harvard’s policies. Though the slogans are simplistic and reprehensible, they are not calls for genocide in so many words. So even if a university could punish direct calls for genocide as some form of harassment, it might justifiably choose not to prosecute students for an interpretation of their words they did not intend.
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  • Nor can a university with a commitment to academic freedom prohibit all calls for political violence. That would require it to punish, say, students who express support for the invasion of Gaza knowing that it must result in the deaths of thousands of civilians. Thus Gay was correct in saying that students’ political slogans are not punishable by Harvard’s rules on harassment and bullying unless they cross over into intimidation, personal threats, or direct incitement of violence.
  • Gay was correct yet again in replying to Stefanik’s insistent demand, “What action has been taken against students who are harassing Jews on campus?” by noting that no action can be taken until an investigation has been completed. Harvard should not mete out summary justice like the Queen of Hearts in “Alice in Wonderland”: Sentence first, verdict afterward.
  • The real problem with Gay’s testimony was that she could not clearly and credibly invoke those principles because they either have never been explicitly adopted by Harvard or they have been flagrantly flouted in the past (as Stefanik was quick to point out)
  • Harvard has persecuted scholars who said there are two sexes, or who signed an amicus brief taking the conservative side in a Supreme Court deliberation. It has retracted acceptances from students who were outed by jealous peers for having used racist trash talk on social media when they were teens. Harvard’s subzero FIRE rating reveals many other punishments of politically incorrect peccadillos.
  • Institutional neutrality. A university does not need a foreign policy, and it does not need to issue pronouncements on the controversies and events of the day. It is a forum for debate, not a protagonist in debates. When a university takes a public stand, it either puts words in the mouths of faculty and students who can speak for themselves or unfairly pits them against their own employer.
  • In the wake of this debacle, the natural defense mechanism of a modern university is to expand the category of forbidden speech to include antisemitism (and as night follows day, Islamophobia). Bad idea
  • Deplorable speech should be refuted, not criminalized. Outlawing hate speech would only result in students calling anything they didn’t want to hear “hate speech.” Even the apparent no-brainer of prohibiting calls for genocide would backfire. Trans activists would say that opponents of transgender women in women’s sports were advocating genocide, and Palestinian activists would use the ban to keep Israeli officials from speaking on campus.
  • For universities to have a leg to stand on when they try to stand on principle, they must embark on a long-term plan to undo the damage they have inflicted on themselves. This requires five commitments.
  • Free speech. Universities should adopt a clear and conspicuous policy on academic freedom. It might start with the First Amendment, which binds public universities and which has been refined over the decades with carefully justified exceptions.
  • Since universities are institutions with a mission of research and education, they are also entitled to controls on speech that are necessary to fulfill that mission. These include standards of quality and relevance: You can’t teach anything you want at Harvard, just like you can’t publish anything you want in The Boston Globe. And it includes an environment conducive to learning.
  • So for the president of Harvard to suddenly come out as a born-again free-speech absolutist, disapproving of what genocidaires say but defending to the death their right to say it, struck onlookers as disingenuous or worse.
  • The events of this autumn also show that university pronouncements are an invitation to rancor and distraction. Inevitably there will be constituencies who feel a statement is too strong, too weak, too late, or wrongheaded.
  • Nonviolence.
  • Universities should not indulge acts of vandalism, trespassing, and extortion. Free speech does not include a heckler’s veto, which blocks the speech of others. These goon tactics also violate the deepest value of a university, which is that opinions are advanced by reason and persuasion, not by force
  • Viewpoint diversity. Universities have become intellectual and political monocultures. Seventy-seven percent of the professors in Harvard’s Faculty of Arts and Sciences describe themselves as liberal, and fewer than 3 percent as conservative. Many university programs have been monopolized by extreme ideologies, such as the conspiracy theory that the world’s problems are the deliberate designs of a white heterosexual male colonialist oppressor class.
  • Vast regions in the landscape of ideas are no-go zones, and dissenting ideas are greeted with incomprehension, outrage, and censorship.
  • The entrenchment of dogma is a hazard of policies that hire and promote on the say-so of faculty backed by peer evaluations. Though intended to protect departments from outside interference, the policies can devolve into a network of like-minded cronies conferring prestige on each other. Universities should incentivize departments to diversify their ideologies, and they should find ways of opening up their programs to sanity checks from the world outside.
  • Disempowering DEI. Many of the assaults on academic freedom (not to mention common sense) come from a burgeoning bureaucracy that calls itself diversity, equity, and inclusion while enforcing a uniformity of opinion, a hierarchy of victim groups, and the exclusion of freethinkers. Often hastily appointed by deans as expiation for some gaffe or outrage, these officers stealthily implement policies that were never approved in faculty deliberations or by university leaders willing to take responsibility for them.
  • An infamous example is the freshman training sessions that terrify students with warnings of all the ways they can be racist (such as asking, “Where are you from?”). Another is the mandatory diversity statements for job applicants, which purge the next generation of scholars of anyone who isn’t a woke ideologue or a skilled liar. And since overt bigotry is in fact rare in elite universities, bureaucrats whose job depends on rooting out instances of it are incentivized to hone their Rorschach skills to discern ever-more-subtle forms of “systemic” or “implicit” bias.
  • Universities should stanch the flood of DEI officials, expose their policies to the light of day, and repeal the ones that cannot be publicly justified.
  • A fivefold way of free speech, institutional neutrality, nonviolence, viewpoint diversity, and DEI disempowerment will not be a quick fix for universities. But it’s necessary to reverse their tanking credibility and better than the alternatives of firing the coach or deepening the hole they have dug for themselves.
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Opinion | The Israel-Hamas War Was Not Inevitable - The New York Times - 0 views

  • For the last few years, though, I’ve felt the opposite — that so much of my work was decrying bad choices made by big players
  • Vladimir Putin’s tightening dictatorship and aggression, culminating in his brutal invasion of Ukraine; Xi Jinping’s reversal of China’s opening; Israel’s election of the most right-wing government in its history; the cascading effects of climate change; the loss of control over America’s southern border; and, maybe most ominously, an authoritarian drift, not only in European countries like Turkey, Poland and Hungary but in America’s own Republican Party as well.
  • If I think about the three pillars that have stabilized the world since I became a journalist in 1978 — a strong America committed to protecting a liberal global order with the help of healthy multilateral institutions like NATO, a steadily growing China always there to buoy the world economy, and mostly stable borders in Europe and the developing world — all three are being shaken by big choices by big players over the last decade
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  • This is triggering a U.S.-China cold war, mass migrations from south to north and an America that has become more unreliable than indispensable.
  • that’s not the half of it. Because now that advanced military technologies like drones are readily available, smaller players can wield much more power and project it more widely than ever before, enabling even their bad choices to shake the world
  • This is why I referred to Russia’s invasion of Ukraine as our first true world war, and why I feel that Hamas’s war with Israel is in some ways our second true world war.
  • They are being fought on both physical battlefields and digital ones, with huge global reach and implications.
  • Indeed, in today’s tightly wired world, it is possible that the war over the Gaza Strip — which is roughly twice the size of Washington, D.C. — could decide the next president in Washington, D.C., as some young Democrats abandon President Biden because of his support for Israel.
  • before we become too pessimistic, let us remember that these choices are just that: choices. There was nothing inevitable or foreordained about them
  • Gorbachev, Deng, Anwar el-Sadat, Menachem Begin, George H.W. Bush and Volodymyr Zelensky, to name but a few, faced excruciating choices, but they chose forks in the road that led to a safer and more prosperous world, at least for a time
  • What is the essential ingredient that Dubai has and Gaza lacks? Because both began, in one sense, as the convergence of sand and seawater at crucial intersections of the world.
  • The short answer is visionary leadership.Dubai has benefited from two generations of monarchs in the United Arab Emirates who had a powerful vision of how the U.A.E. in general and the emirate of Dubai in particular could choose to be Arab, modern, pluralistic, globalized and embracing of a moderate interpretation of Islam
  • Their formula incorporates a radical openness to the world, an emphasis on free markets and education, a ban on extremist political Islam, relatively little corruption, a strong rule of law promulgated from the top down and a relentless commitment to economic diversification, talent recruitment and development.
  • Any of Dubai’s neighbors — Kuwait, Qatar, Oman, Bahrain, Iran and Saudi Arabia — could have done the same with their similar coastlines, but it was the U.A.E. that pulled it off by making the choices it made.
  • Compare that with Gaza, where the role models today are Hamas martyrs in its endless war with Israel.
  • Among the most ignorant and vile things that have been said about this Gaza war is that Hamas had no choice — that its wars with Israel, culminating on Oct. 7 with a murderous rampage, the kidnappings of Israelis as young as 10 months and as old as 86 and the rape of Israeli women, could somehow be excused as a justifiable jailbreak by pent-up males.
  • Let’s go to the videotape: In September 2005, Ariel Sharon completed a unilateral withdrawal of all Israeli forces and settlements from Gaza, which Israel occupied in the 1967 war. In short order, Hamas began attacking the crossing points between Gaza and Israel to show that even if Israel was gone, the resistance movement wasn’t over; these crossing points were a lifeline for commerce and jobs, and Israel eventually reduced the number of crossings from six to two.
  • In January 2006, the Palestinians held elections hoping to give the Palestinian Authority legitimacy to run Gaza and the West Bank. There was a debate among Israeli, Palestinian and Bush administration officials over whether Hamas should be allowed to run in the elections — because it had rejected the Oslo peace accords with Israel.
  • Yossi Beilin, one of the Israeli architects of Oslo, told me that he and others argued that Hamas should not be allowed to run, as did many members of Fatah, Arafat’s group, who had embraced Oslo and recognized Israel. But the Bush team insisted that Hamas be permitted to run without embracing Oslo, hoping that it would lose and this would be its ultimate refutation.
  • Fatah ran unrealistically high numbers of candidates in many districts, dividing the vote, while the more disciplined Hamas ran carefully targeted slates and managed to win the parliamentary majority.
  • Hamas then faced a critical choice: Now that it controlled the Palestinian parliament, it could work within the Oslo Accords and the Paris protocol that governed economic ties between Israel, Gaza and the West Bank — or not.
  • Hamas chose not to — making a clash between Hamas and Fatah, which supported Oslo, inevitable
  • That led to the first Israeli economic blockade of Gaza — and what would be 22 years of on-and-off Hamas rocket attacks, Israeli checkpoint openings and closings, wars and cease-fires, all culminating on Oct. 7.
  • These were fateful choices. Once Sharon pulled Israel out of Gaza, Palestinians were left, for the first time ever, with total control over a piece of land. Yes, it was an impoverished slice of sand and coastal seawater, with some agricultural areas. And it was not the ancestral home of most of its residents. But it was theirs to build anything they wanted.
  • Hamas had a choice: to replicate Dubai in 2023 or replicate Hanoi in 1968. It chose to replicate Hanoi, whose Củ Chi tunnel network served as the launchpad for the ’68 Tet offensive.
  • Hamas is not simply engaged in some pure-as-the-driven-snow anticolonial struggle against Israel. Only Hamas’s useful idiots on U.S. college campuses would believe that.
  • Hamas is engaged in a raw power struggle with Fatah over who will control Gaza and the West Bank, and it’s engaged in a power struggle in the region — alongside other pro-Muslim Brotherhood parties and regimes (like Turkey and Qatar) — against pro-Western monarchies like Saudi Arabia, Jordan, Kuwait and the U.A.E. and military-led regimes like Egypt’s.
  • In that struggle, Hamas wanted Gaza isolated and in conflict with Israel because that allowed Hamas to maintain its iron-fisted political and Islamist grip over the strip, foregoing elections and controlling all the smuggling routes in and out, which funded its tunnels and war machine and the lifestyle of its leaders and loyalists
  • The only exit from this mutually assured destruction is to bring in some transformed version of the Palestinian Authority in the West Bank — or a whole new P.L.O.-appointed government of Palestinian technocrats — in partnership with moderate Arab states like Egypt, Jordan and Saudi Arabia. But when I raise that with many Israelis right now, they tell me, “Tom, it’s not the time. No one wants to hear it.”
  • please, spare me the Harvard Yard nonsense that this war is all about the innocent, colonized oppressed and the evil, colonizing oppressors; that Israel alone was responsible for the isolation of Gaza; and that the only choice Hamas had for years was to create an underground “skyline” of tunnels up to 230 feet deep (contra Dubai) and that its only choice on Oct. 7 was martyrdom.
  • But our story about agency and choices does not stop there. Benjamin Netanyahu, Israel’s longest-serving prime minister — 16 years — also made choices. And even before this war, he made terrible ones — for Israel and for Jews all over the world.
  • Before this war, Netanyahu actively worked to keep the Palestinians divided and weak by strengthening Hamas in Gaza with billions of dollars from Qatar, while simultaneously working to discredit and delegitimize the more moderate Palestinian Authority in Ramallah, committed to Oslo and nonviolence in the West Bank.
  • Netanyahu’s goal has always been to destroy the Oslo option once and for all. In that, Bibi and Hamas have always needed each other: Bibi to tell the United States and Israelis that he had no choice, and Hamas to tell Gazans and its new and naïve supporters around the world that the Palestinians’ only choice was armed struggle led by Hamas.
  • This is now a common strategy for consolidating and holding power forever by a single political faction and disguising it with an ideology of resistance. It’s no wonder they all support one another.
  • Don’t they get it? Netanyahu’s greatest political achievement has been to persuade Israelis and the world that it’s never the right time to talk about the morally corrosive occupation and how to help build a credible Palestinian partner to take it off Israel’s hands.
  • He and the settlers wore everyone down. When I covered the State Department in the early 1990s, West Bank settlements were routinely described by U.S. officials as “obstacles to peace.” But that phrase was gradually dropped. The Trump administration even decided to stop calling the West Bank “occupied” territory.
  • Israel is being surrounded by what I call Iran’s landcraft carriers (as opposed to our aircraft carriers): Hamas, Hezbollah, the Houthis and Shiite militias in Iraq. Iran is squeezing Israel into a multifront war with its proxies. I truly worry for Israel.
  • But Israel will have neither the sympathy of the world that it needs nor the multiple allies it needs to confront this Iranian octopus, nor the Palestinian partners it needs to govern any post-Hamas Gaza, nor the lasting support of its best friend in the world, Joe Biden, unless it is ready to choose a long-term pathway for separating from the Palestinians with an improved, legitimate Palestinian partner.
  • For all these reasons, if Netanyahu keeps refusing because, once again, politically, the time is not right for him, Biden will have to choose, too — between America’s interests and Netanyahu’s.
  • In sum, this war is so ugly, deadly and painful, it is no wonder that so many Palestinians and Israelis want to just focus on survival and not on any of the choices that got them here
  • The Haaretz writer Dahlia Scheindlin put it beautifully in a recent essay:The situation today is so terrible that people run from reality as they run from rockets — and hide in the shelter of their blind spots. It’s pointless to wag fingers. The only thing left to do is try and change that reality.
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What the Ukraine Crisis Reveals About American Power - The Atlantic - 0 views

  • Guicciardini noted the danger of such moments. “If you see a city beginning to decline, a government changing, a new empire expanding,” he warned, “be careful not to misjudge the time they will take.”
  • the problem is that while the rise or fall of a new power is typically obvious—China’s for example—the point at which the old power is likely to be replaced is far more difficult to judge. Guicciardini wrote that “such movements are much slower than most men imagine.”
  • We know that the benign leviathan of Clintonian America has gone—a victim both of historic forces that weren’t within its control and of hubristic mismanagement that very much was.
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  • even the America of Donald Trump and Joe Biden remains the most powerful country on the planet—at least for now.
  • The fact that the imperial center is gripped by a kind of psycho-political civil war, conflicted about who it is and what it wants to be, is troubling for many of its allies, but not yet enough to alter the fundamental reality of where power lies in the world.
  • For the states of Eastern Europe and the Baltics, the immediate crisis has only proved that what matters to them above all is the American security guarantee.
  • This realization of how little has changed in terms of the fundamental anchor of European security applies to Europe’s “big three” as well. Each of these powers—Germany, France, and Britain—is playing a role coordinated by Washington: Germany as economic leverage, France as diplomatic lead, Britain as the intelligence and military hawk.
  • Successive American administrations are surely right that Europe needs to pay more for its own defense, and Macron is surely right that Europe risks drifting into geopolitical irrelevance if it does not, caught between a United States that wants to disengage and one that never quite seems able to.
  • the picture that emerges is a strange one of impressive short-term Western unity and long-term incoherence. The Ukraine crisis has reinforced an American dominance that everyone believes is unsustainable.
  • The result is conservative management of this crisis that is both sensible and admirable, but also limited (and, potentially, ineffective in actually deterring Putin).
  • Whenever the EU has faced a crisis, it has tended to do just enough to get through the problem—and little else. The euro remains so structurally flawed that few think it can seriously rival the dollar; the EU has failed to build itself almost any foreign-policy clout, with little military-industrial capacity and barely any coordinated defensive capability. And the problem is, this is how Germany likes it.
  • A former ambassador of a major EU power to Berlin told me that Germany will simply not change its position; its economy is too successful for it to do what is necessary for the EU to become an independent force. At heart, Berlin is happy with the status quo, weathering whatever storms blow in from Washington. If it is forced to change course, then it will, but sees no point in preempting this given the enormous benefits of being the preeminent economic power in Europe without the responsibilities of a decisive global power
  • One former European ambassador to Washington told me he had come to the conclusion that nothing would change in Europe until America pulled out, leaving the continent to fend for itself.
  • Like Germany but in reverse, does the United States really want to change the status quo that has worked so well for so long?
  • The ambiguity in the American position is reflected in the current administration, which seems caught between wanting to be more hard-edged and nationalistic in its foreign policy—ending distracting “forever wars” without consultation, gazumping allies’ defense contracts and the like—and not being quite comfortable giving up its idea of itself as the force for rules-based internationalism.
  • One frustrated former diplomat told me that Biden was a realist but members of his team were products of the old Washington consensus, “hence their half-baked internationalistic-nationalistic policy.”
  • Russia’s challenge to the West today, as it amasses its troops on Ukraine’s borders, is predicated on its belief that American power is retreating, and with it the power of its example. Europe’s response, however, has been to reveal how powerful America remains. The truth is that it’s possible for both sentiments to be true at the same time.
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March 2020: How the Fed Averted Economic Disaster - WSJ - 0 views

  • Over the week of March 16, markets experienced an enormous shock to what investors refer to as liquidity, a catchall term for the cost of quickly converting an asset into cash.
  • Mr. Powell bluntly directed his colleagues to move as fast as possible.
  • They devised unparalleled emergency-lending backstops to stem an incipient financial panic that threatened to exacerbate the unfolding economic and public-health emergencies.
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  • They were offering nearly unlimited cheap debt to keep the wheels of finance turning, and when that didn’t help, the Fed began purchasing massive quantities of government debt outright.
  • Investors dumped whatever they could, including ostensibly “risk-free” U.S. Treasury securities. As a global dash for dollars unfolded, Treasurys were no longer serving as the market’s traditional shock absorbers, amplifying extreme turmoil on Wall Street.
  • By week’s end, the Dow had plunged more than 10,000 points since mid-February as investors struggled to get their arms around what a halt to global commerce would mean for businesses that would soon have no revenue.
  • “It was sheer, unadulterated panic, of a magnitude that was far worse than in 2008 and 2009. Far worse,”
  • The idea of shutting down markets was especially discouraging: “It was a profoundly un-American thing to contemplate, to just shut everything down, and almost fatalistic—that we’re not going to get out of this.”
  • nearly two years later, most agree that the Fed’s actions helped to save the economy from going into a pandemic-induced tailspin.
  • “My thought was—I remember this very clearly—‘O.K. We have a four-or-five-day chance to really get our act together and get ahead of this. We’re gonna try to get ahead of this,’” Mr. Powell recalled later. “And we were going to do that by just announcing a ton of stuff on Monday morning.”
  • It worked. The Fed’s pledges to backstop an array of lending, announced on Monday, March 23, would unleash a torrent of private borrowing based on the mere promise of central bank action—together with a massive assist by Congress, which authorized hundreds of billions of dollars that would cover any losses.
  • If the hardest-hit companies like Carnival, with its fleet of 104 ships docked indefinitely, could raise money in capital markets, who couldn’t?
  • on April 9, where he shed an earlier reluctance to express an opinion about government spending policies, which are set by elected officials and not the Fed. He spoke in unusually moral terms. “All of us are affected,” he said. “But the burdens are falling most heavily on those least able to carry them…. They didn’t cause this. Their business isn’t closed because of anything they did wrong. This is what the great fiscal power of the United States is for—to protect these people as best we can from the hardships they are facing.”
  • They were extraordinary words from a Fed chair who during earlier, hot-button policy debates said the central bank needed to “stay in its lane” and avoid providing specific advice.
  • To avoid a widening rift between the market haves (who had been given access to Fed backstops) and the market have-nots (who had been left out because their debt was deemed too risky), Mr. Powell had supported a decision to extend the Fed’s lending to include companies that were being downgraded to “junk” status in the days after it agreed to backstop their bonds.
  • Most controversially, Mr. Powell recommended that the Fed purchase investment vehicles known as exchange-traded funds, or ETFs, that invest in junk debt. He and his colleagues feared that these “high-yield” bonds might buckle, creating a wave of bankruptcies that would cause long-term scarring in the economy.
  • Mr. Powell decided that it was better to err on the side of doing too much than not doing enough.
  • , Paul Singer, who runs the hedge-fund firm Elliott Management, warned that the Fed was sowing the seeds of a bigger crisis by absolving markets of any discipline. “Sadly, when people (including those who should know better) do something stupid and reckless and are not punished,” he wrote, “it is human nature that, far from thinking that they were lucky to have gotten away with something, they are encouraged to keep doing the stupid thing.”
  • The breathtaking speed with which the Fed moved and with which Wall Street rallied after the Fed’s announcements infuriated Dennis Kelleher, a former corporate lawyer and high-ranking Senate aide who runs Better Markets, an advocacy group lobbying for tighter financial regulations.
  • This is a ridiculous discussion no matter how heartfelt Powell is about ‘we can’t pick winners and losers’—to which my answer is, ‘So instead you just make them all winners?’”
  • “Literally, not only has no one in finance lost money, but they’ve all made more money than they could have dreamed,” said Mr. Kelleher. “It just can’t be the case that the only thing the Fed can do is open the fire hydrants wide for everybody
  • Mr. Powell later defended his decision to purchase ETFs that had invested in junk debt. “We wanted to find a surgical way to get in and support that market because it’s a huge market, and it’s a lot of people’s jobs… What were we supposed to do? Just let them die and lose all those jobs?” he said. “If that’s the biggest mistake we made, stipulating it as a mistake, I’m fine with that. It wasn’t time to be making finely crafted judgments,” Mr. Powell said. He hesitated for a moment before concluding. “Do I regret it? I don’t—not really.”
  • “We didn’t know there was a vaccine coming. The pandemic is just raging. And we don’t have a plan,” said Mr. Powell. “Nobody in the world has a plan. And in hindsight, the worry was, ‘What if we can’t really fully open the economy for a long time because the pandemic is just out there killing people?’”
  • Mr. Powell never saw this as a particularly likely outcome, “but it was around the edges of the conversation, and we were very eager to do everything we could to avoid that outcome,”
  • The Fed’s initial response in 2020 received mostly high marks—a notable contrast with the populist ire that greeted Wall Street bailouts following the 2008 financial crisis. North Carolina Rep. Patrick McHenry, the top Republican on the House Financial Services Committee, gave Mr. Powell an “A-plus for 2020,” he said. “On a one-to-10 scale? It was an 11. He gets the highest, highest marks, and deserves them. The Fed as an institution deserves them.”
  • The pandemic was the most severe disruption of the U.S. economy since the Great Depression. Economists, financial-market professionals and historians are only beginning to wrestle with the implications of the aggressive response by fiscal and monetary policy makers.
  • Altogether, Congress approved nearly $5.9 trillion in spending in 2020 and 2021. Adjusted for inflation, that compares with approximately $1.8 trillion in 2008 and 2009.
  • By late 2021, it was clear that many private-sector forecasters and economists at the Fed had misjudged both the speed of the recovery and the ways in which the crisis had upset the economy’s equilibrium. Washington soon faced a different problem. Disoriented supply chains and strong demand—boosted by government stimulus—had produced inflation running above 7%.
  • because the pandemic shock was akin to a natural disaster, it allowed Mr. Powell and the Fed to sidestep concerns about moral hazard—that is, the possibility that their policies would encourage people to take greater risks knowing that they were protected against larger losses. If a future crisis is caused instead by greed or carelessness, the Fed would have to take such concerns more seriously.
  • The high inflation that followed in 2021 might have been worse if the U.S. had seen more widespread bankruptcies or permanent job losses in the early months of the pandemic.
  • an additional burst of stimulus spending in 2021, as vaccines hastened the reopening of the economy, raised the risk that monetary and fiscal policy together would flood the economy with money and further fuel inflation.
  • The surge in federal borrowing since 2020 creates other risks. It is manageable for now but could become very expensive if the Fed has to lift interest rates aggressively to cool the economy and reduce high inflation.
  • The Congressional Budget Office forecast in December 2020 that if rates rose by just 0.1 percentage point more than projected in each year of the decade, debt-service costs in 2030 would rise by $235 billion—more than the Pentagon had requested to spend in 2022 on the Navy.
  • its low-rate policies have coincided with—and critics say it has contributed to—a longer-running widening of wealth inequality.
  • In 2008, household wealth fell by $8 trillion. It rose by $13.5 trillion in 2020, and in the process, spotlighted the unequal distribution of wealth-building assets such as houses and stocks.
  • Without heavy spending from Washington, focused on the needs of the least well-off, these disparities might have attracted more negative scrutiny.
  • Finally, the Fed is a technocratic body that can move quickly because it operates under few political constraints. Turning to it as the first line of defense in this and future crises could compromise its institutional independence.
  • Step one, he said, was to get in the fight and try to win. Figuring out how to exit would be a better problem to have, because it would mean they had succeeded.
  • “We have a recovery that looks completely unlike other recoveries that we’ve had because we’ve put so much support behind the recovery,” Mr. Powell said last month. “Was it too much? I’m going to leave that to the historians.”
  • The final verdict on the 2020 crisis response may turn on whether Mr. Powell is able to bring inflation under control without a painful recession—either as sharp price increases from 2021 reverse on their own accord, as officials initially anticipated, or because the Fed cools down the economy by raising interest rates.
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Revealed: Credit Suisse leak unmasks criminals, fraudsters and corrupt politicians | Cr... - 0 views

  • The huge trove of banking data was leaked by an anonymous whistleblower to the German newspaper Süddeutsche Zeitung. “I believe that Swiss banking secrecy laws are immoral,” the whistleblower source said in a statement. “The pretext of protecting financial privacy is merely a fig leaf covering the shameful role of Swiss banks as collaborators of tax evaders.”
  • Swiss financial institutions manage about 7.9tn CHF (£6.3tn) in assets, nearly half of which belongs to foreign clients.
  • It identifies the convicts and money launderers who were able to open bank accounts, or keep them open for years after their crimes emerged. And it reveals how Switzerland’s famed banking secrecy laws helped facilitate the looting of countries in the developing world.
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  • his case is one of dozens discovered by reporters appearing to show Credit Suisse opened or maintained accounts for clients who had serious convictions that might be expected to show up in due diligence checks. There are other instances in which Credit Suisse may have taken quick action after red flags emerged, but the case nonetheless shows that dubious clients have been attracted to the bank.
  • Like every other bank in the world, Credit Suisse professes to have stringent control mechanisms to carry out extensive due diligence on its customers to “ensure that the highest standards of conduct are upheld”. In banking parlance, such controls are called know-your-client or KYC checks.
  • A 2017 leaked report commissioned by Switzerland’s financial regulator shed some light on the bank’s internal procedures at that time. Clients would face intensified scrutiny when flagged as a politically exposed person from a high-risk country, or a person involved in a high-risk activity such as gambling, weapons trading, financial services or mining, the report said.
  • Such controls might be expected to prevent a bank from opening accounts for clients such as Rodoljub Radulović, a Serbian securities fraudster indicted in 2001 by the US Securities and Exchange Commission. However, the leaked data identifies him as the co-signatory of two Credit Suisse company accounts. The first was opened in 2005, the year after the SEC had secured a default judgment against Radulović for running a pump-and-dump scheme.
  • One of Radulović’s company accounts held 3.4m CHF (£2.2m) before they closed in 2010. He was recently given a 10-year prison sentence by a court in Belgrade for his role trafficking cocaine from South America for the organised crime boss Darko Šarić.
  • Due diligence is not only for new clients. Banks are required to continually reassess existing customers. The 2017 report said Credit Suisse screened customers at least every three years and as often as once a year for the riskiest clients. Lawyers for Credit Suisse told the Guardian these periodic reviews were introduced “more than 15 years ago”, meaning it was continually running due diligence on existing clients from 2007.
  • The bank might, therefore, have been expected to have discovered that its German client Eduard Seidel was convicted of bribery in 2008. Seidel was an employee of Siemens. As the multinational’s lead in Nigeria, he oversaw a campaign of industrial-scale bribery to secure lucrative contracts for his employer by funnelling cash to corrupt Nigerian politicians.
  • After German authorities raided the Munich headquarters of Siemens in 2006, Seidel immediately confessed his role in the bribery scheme, though he said he had never stolen from the company or appropriated its slush funds. His involvement in the corruption led to his name being entered into the Thomson Reuters World-Check database in 2007.
  • However, the leaked Credit Suisse data shows his accounts were left open until at least well into the last decade. At one point after he left Siemens, one account was worth 54m CHF (£24m). Seidel’s lawyer declined to say whether the accounts were his. He said his client had addressed all outstanding matters relating to his bribery offences and wished to move on with his life.
  • The lawyer did not respond to repeated invitations to explain the source of the 54m CHF. Siemens said it did not know about the money and that its review of its own cashflows shed no light on the account.
  • A representative for Sederholm said Credit Suisse never froze his accounts and did not close them until 2013 when he was unable to provide due diligence material. Asked why Sederholm needed a Swiss account, they said that he was living in Thailand when it was opened, adding: “Can you please tell me if you would prefer to put your money in a Thai or Swiss bank?”
  • One client, Stefan Sederholm, a Swedish computer technician who opened an account with Credit Suisse in 2008, was able to keep it open for two-and-a-half years after his widely reported conviction for human trafficking in the Philippines, for which he was given a life sentence.
  • Swiss banks have cultivated their trusted reputation since as far back as 1713, when the Great Council of Geneva prohibited bankers from revealing details about the fortunes being deposited by European aristocrats. Switzerland soon became a tax haven for many of the world’s elites and its bankers nurtured a “duty of absolute silence” about their clients affairs.
  • The custom was enshrined in statute in 1934 with the introduction of Switzerland’s banking secrecy law, which criminalised the disclosure of client banking information to foreign authorities. Within decades, wealthy clients from all over the world were flocking to Swiss banks. Sometimes, that meant clients with something to hide.
  • One former Credit Suisse employee at the time alleges there was a deeply ingrained culture in Swiss banking of looking the other way when it came to problematic clients. “The bank’s compliance departments [were] masters of plausible deniability,” they told a reporter from the Organized Crime and Corruption Reporting Project, one of the coordinators of the Suisse secrets project. “Never write anything down that could expose an account that is non-compliant and never ask a question you do not want to know the answer to.”
  • The 2000s was also a decade in which foreign regulators and tax authorities became increasingly frustrated at their inability to penetrate the Swiss financial system. That changed in 2007, when the UBS banker Bradley Birkenfeld voluntarily approached US authorities with information about how the bank was helping thousands of wealthy Americans evade tax with secret accounts.
  • Birkenfeld was viewed as a traitor in Switzerland, where banking whistleblowers are often held in contempt. However, a wide-ranging US Senate investigation later uncovered the aggressive tactics used by UBS and Credit Suisse, the latter of which was found to have sent bankers to high-end events to recruit clients, courted a potential customer with free gold, and in one case even delivered sensitive bank statements hidden in the pages of a Sports Illustrated magazine.
  • The revelations sent shock waves through Switzerland’s financial sector and enraged the US, which pressured Switzerland into unilaterally disclosing which of its taxpayers had secret Swiss accounts from 2014. That same year, Switzerland reluctantly signed up to the international convention on the automatic exchange of banking Information.
  • By adopting the so-called common reporting standard (CRS) for sharing tax data, Switzerland in effect agreed that its banks would in the future exchange information about their clients with tax authorities in foreign countries. They started doing so in 2018.
  • Membership of the global exchange system is often cited by Switzerland’s banking industry as a turning point. “There is no longer Swiss bank client confidentiality for clients abroad,” the Swiss Bankers Association told the Guardian. “We are transparent, there is nothing to hide in Switzerland.”
  • Switzerland’s almost 90-year-old banking secrecy law, however, remains in force – and was recently broadened. The Tax Justice Network estimates that countries around the world collectively lose $21bn (£15.4bn) each year in tax revenues because of Switzerland. Many of those countries will be poorer nations that have not signed up to the CRS data exchange.
  • More than 90 countries, most of which are in the developing world, remain in the dark when their wealthy taxpayers hide their money in Swiss accounts.
  • This inequity in the system was cited by the whistleblower behind the leaked data, who said the CRS system “imposes a disproportionate financial and infrastructural burden on developing nations, perpetuating their exclusion from the system in the foreseeable future”.
  • “This situation enables corruption and starves developing countries of much-needed tax revenue. These countries are the ones that therefore suffer most from Switzerland’s reverse-Robin-Hood stunt,” they said.
  • “I am aware that having an offshore Swiss bank account does not necessarily imply tax evasion or any other financial crime,” they said. “However, it is likely that a significant number of these accounts were opened with the sole purpose of hiding their holder’s wealth from fiscal institutions and/or avoiding the payment of taxes on capital gains.”
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To Keep Putin and His Oligarchs Afloat, It Takes a System - The New York Times - 0 views

  • We tend to think of corruption as a failure of morality, when a greedy person decides to benefit by steering public resources toward private gain.
  • But while that’s not exactly untrue, it misses the most important thing: namely, that corruption is a group activity. You need bribe-payers and bribe-takers, resource-diverters and resource-resellers, look-the-other-wayers and demand-a-share-of-the-takers.
  • When that kind of corrupt network behavior becomes widespread, it creates its own parallel system of rewards — and punishments.
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  • “What is different with systemic corruption is that it’s the expected behavior,”
  • “These expectations make it very difficult for all individuals, actually, to stand against corruption, because it’s very costly in all different ways to resist that kind of system.”
  • Those who refuse to participate in the parallel economy of favors and bribes get passed over for promotion, cut off from benefits, and frozen out of power.
  • The result is a system where power and wealth accrue to those willing to play the corruption game, and those who are not get left behind.
  • Corruption “serves as a regressive tax, it’s like Robin Hood in reverse,” Persson told me. “All the resources are moved to the top of the system, to the great cost of the majority of the population.”
  • But why did corruption in Russia get that bad? The answer, and maybe a counterintuitive one, is in democratization.
  • There was corruption in the Soviet Union. But after its dissolution in 1991, the sudden explosive growth of freedom of expression and freedom of association in Russia and the other former Soviet countries and satellites brought new opportunities, not just for political and economic development, but for crime and corruption.
  • “Freedoms of expression and association don’t only have to be used for good things, they can be used for illegal activities, too,” McMann said. “When people can more easily get together and talk, that enables them to actually plan corrupt activity.”
  • That wouldn’t have been so bad if democratization had also brought in checks on executive power, an independent judiciary to investigate and prosecute crimes. “In order to have capitalism have functioning markets, you also need to build institutions. You need banks that can provide credit, you need a strong legal system that will protect property.”
  • Estonia followed that path. After the Soviet Union fell, Estonia’s new, democratically elected parliament strengthened the judiciary and introduced new checks on executive power. There, corruption fell.
  • But in Russia, the government heeded Western advisers’ urging to get the state out of the economy as much as possible in order to let free markets flourish. Institutions and constraints fell by the wayside. In that vacuum, the parallel structures of corruption flourished, crowding honest politicians out of government and honest businesses out of the market.
  • By the late 1990s, official corruption had flourished at every level of the government. In 1999, as President Boris Yeltsin’s presidency began to weaken, elites pressured him to leave office on their terms. If Yeltsin would anoint their handpicked successor, they would ensure that he and his family did not face prosecution for misappropriation of government funds.
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Mike Pence and the Christian Conflict on January 6 - 0 views

  • When Pence became the focal point of the mob’s rage, it crystalized a religious conflict between two competing visions of religion in politics. The mob’s focus was on power, and through power it intended to “save America” from Joe Biden and the Democrats. Trump—and the riot—were a means to an end, and the “strength” they sought was the strength to disrupt the government and defeat their hated enemies.
  • Pence’s focus, by contrast, was on justice—upholding the rule of law—and the courage he sought was the courage to ignore the howls of the mob and defy the demands of a deranged president to preserve his office.
  • upholding the rule of law—and the courage he sought was the courage to ignore the howls of the mob and defy the demands of a deranged president to preserve his office
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  • The desperate quest for power is a constant human temptation, and when people are gripped by the spirit of Barabbas they will scorn, reject, threaten, or sometimes even try to kill all those who stand in their way.
  • there is nothing new under the sun. When God’s people chose the insurrectionist Barabbas over Jesus himself, they were not uniquely evil or even all that unusual. The desperate quest for power is a constant human temptation, and when people are gripped by the spirit of Barabbas they will scorn, reject, threaten, or sometimes even try to kill all those who stand in their way. 
  • A commitment to justice does not require a commitment to power. As Pence demonstrated in that fateful moment, a commitment to justice can even require a Christian to relinquish his power and surrender his authority. 
  • We rightly shake our heads at displays like this, from Lindsey Graham:
  • “You know what I liked about Trump? Everybody was afraid of him, including me.” — Sen. Lindsey Graham (R-SC)
  • If it was easier to do what’s right, then we’d see more virtue. Why do we tend to see better individual and institutional behavior under better leaders? Because better leaders make it easier for normal, everyday men and women to stay true to their values.
  • but the prevalence of cowardice demonstrates the difficulty of courage.
  • The same principle works in reverse, and it was a prime reason why Trump was so thoroughly and systematically destructive to American institutions and culture. When the leader is corrupt, he creates barriers to virtue.
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Jack Bogle: The Undisputed Champion of the Long Run - WSJ - 0 views

  • Jack Bogle is ready to declare victory. Four decades ago, a mutual-fund industry graybeard warned him that he would “destroy the industry.” Mr. Bogle’s plan was to create a new mutual-fund company owned not by the founding entrepreneur and his partners but by the shareholders of the funds themselves. This would keep overhead low for investors, as would a second part of his plan: an index fund that would mimic the performance of the overall stock market rather than pay genius managers to guess which stocks might go up or down.
  • Not even Warren Buffett has minted more millionaires than Jack Bogle has—and he did so not by helping them get lucky, but by teaching them how to earn the market’s long-run, average return without paying big fees to Wall Street.
  • “When the climate really gets bad, I’m not some statue out there. But when I get knots in my stomach, I say to myself, ‘Reread your books,’ ” he says. Mr. Bogle has written numerous advice books on investing, including 2007’s “The Little Book of Common Sense Investing,” which remains a perennial Amazon best seller—and all of them emphasize not trying to outguess the markets.
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  • Mr. Bogle has some hard news for investors. The basic appeal of index funds—their ability to deliver the market return without shifting an arm and leg to Wall Street’s army of helpers—will only become more important given the decade of depressed returns he sees ahead.
  • Don’t imagine a revisitation of the ’80s or ’90s, when stocks returned 18% a year and investors, after the industry’s rake-off, imagined they “had the greatest manager in the world” because they got 14%. Those planning on a comfy retirement or putting a kid through college will have to save more, work to keep costs low, and—above all—stick to the plan.
  • The mutual-fund industry is slowly liquidating itself—except for Vanguard. Mr. Bogle happily supplies the numbers: During the 12 months that ended May 31, “the fund industry took in $87 billion . . . of which $224 billion came into Vanguard.” In other words, “in the aggregate, our competitors experienced capital outflows of $137 billion.”
  • That said, Mr. Bogle finds today’s stock scene puzzling. Shares are highly priced in historical terms; earnings and economic growth he expects to disappoint for at least the next decade (he sees no point in trying to forecast further). And yet he advises investors to stay invested and weather the storm: “If we’re going to have lower returns, well, the worst thing you can do is reach for more yield. You just have to save more.”
  • He also knows the heartache of having just about everything he has saved tied up in volatile, sometimes irrational markets, especially now. “We’re in a difficult place,” he says. “We live in an extremely risky world—probably more risky than I can recall.”
  • Then why invest at all? Maybe it would be better to sell and stick the cash in a bank or a mattress. “I know of no better way to guarantee you’ll have nothing at the end of the trail,” he responds. “So we know we have to invest. And there’s no better way to invest than a diversified list of stocks and bonds at very low cost.”
  • Mr. Bogle’s own portfolio consists of 50% stocks and 50% bonds, the latter tilted toward short- and medium-term. Keep an eagle eye on costs, he says, in a world where pre-cost returns may be as low as 3% or 4%. Inattentive investors can expect to lose as much as 70% of their profits to “hidden” fund management costs in addition to the “expense ratios” touted in mutual-fund prospectuses. (These hidden costs include things like sales load, transaction costs, idle cash and inefficient taxes.)
  • Mr. Bogle relies on a forecasting model he published 25 years ago, which tells him that investors over the next decade, thanks largely to a reversion to the mean in valuations, will be lucky to clear 2% annually after costs. Yuck.
  • Investing, he says, always is “an act of trust—in the ability of civilization and the U.S. to continue to flourish; in the ability of corporations to continue, through efficiency and entrepreneurship and innovation, to provide substantial returns.” But nothing, not even American greatness, is guaranteed, he adds
  • what he calls the financial buccaneer type, an entrepreneur more interested in milking what’s left of the active-management-fee gravy train than in providing low-cost competition for Vanguard—which means Vanguard’s best days as guardian of America’s nest egg may still lie ahead.
  • the growth of indexing is obviously unwelcome writing on the wall for Wall Street professionals and Vanguard’s profit-making competitors like Fidelity, which have never been able to give heart and soul to low-churn indexing because indexing doesn’t generate large fees for executives and shareholders of management companies.
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