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“It is genius for the current consumer culture,” Christine Whelan, a clinical professor of consumer science at the University of Wisconsin at Madison, told me. “It encourages and then meets the need for the thing, so we then continue on the hedonic treadmill: Buy the latest thing we want and then have it delivered immediately and then buy the next latest thing.”

With traditional retail, “there’s the friction of having to go to the store, there’s the friction of will the store have it, there’s the friction of carrying it,” Whelan said. “There’s the friction of having to admit to another human being that you’re buying it. And when you remove the friction, you also remove a lot of individual self-control. The more you are in the ecosystem and the easier it is to make a purchase, the easier it is to say yes to your desire rather than no.”

“It used to be that being a consumer was all about choice,”

But now, “two-thirds of people start their product searches on Amazon.

Prime discourages comparison shopping—looking around is pointless when everything you need is right here—even as Amazon’s sheer breadth of products makes shoppers feel as if they have agency.

“Consumerism has become a key way that people have misidentified freedom,”

what Amazon represents is a corporate infrastructure that is increasingly directed at getting as many consumers as possible locked into a consumerist process—an Amazon consumer for life.”

Amazon offers steep discounts to college students and new parents, two groups that are highly likely to change their buying behavior. It keeps adding more discounts and goodies to the Prime bundle, making subscribing ever more appealing. And, in an especially sinister move, it makes quitting Prime maddeningly difficult.

As subscription numbers grew through the 2010s, the revenue from them helped Amazon pump more money into building fulfillment centers (to get products to people even faster), acquiring new businesses (to control even more of the global economy), and adding more perks to the bundle (to encourage more people to sign up)

In 2019, Amazon shaved a full day off its delivery time, making one-day shipping the default, and also making Prime an even more tantalizing proposition: Why hop in the car for anything at all when you could get it delivered tomorrow, for free?

the United States now has more Prime memberships than households. In 2020,

Amazon’s revenue from subscriptions alone—mostly Prime—was $25.2 billion, which is a 31 percent increase from the previous year

Thanks in large part to the revenue from Prime subscriptions and from the things subscribers buy, Amazon’s value has multiplied roughly 97 times, to $1.76 trillion, since the service was introduced. Amazon is the second-largest private employer in the United States, after Walmart, and it is responsible for roughly 40 percent of all e-commerce in the United States.

It controls hundreds of millions of square feet across the country and is opening more fulfillment centers all the time. It has acquired dozens of other companies, most recently the film studio MGM for $8.5 billion. Its cloud-computing operation, Amazon Web Services, is the largest of its kind and provides the plumbing for a vast swath of the internet, to a profit of $13.5 billion last year.

Amazon has entered some 40 million American homes in the form of the Alexa smart speaker, and some 150 million American pockets in the form of the Amazon app

“Amazon is a beast we’ve never seen before,” Alimahomed-Wilson told me. “Amazon powers our Zoom calls. It contracts with ICE. It’s in our neighborhoods. This is a very different thing than just being a large retailer, like Walmart or the Ford Motor Company.”

I find it useful to compare Big Tech to climate change, another force that is altering the destiny of everyone on Earth, forever. Both present themselves to us all the time in small ways—a creepy ad here, an uncommonly warm November there—but are so big, so abstract, so everywhere that they’re impossible for any one person to really understand

Both are the result of a decades-long, very human addiction to consumption and convenience that has been made grotesque and extreme by the incentives and mechanisms of the internet, market consolidation, and economic stratification

Both have primarily been advanced by a small handful of very big companies that are invested in making their machinations unseeable to the naked eye.

Speed and convenience aren’t actually free; they never are. Free shipping isn’t free either. It just obscures the real price.

Next-day shipping comes with tremendous costs: for labor and logistics and transportation and storage; for the people who pack your stuff into those smiling boxes and for the people who deliver them; for the planes and trucks and vans that carry them; for the warehouses that store them; for the software ensuring that everything really does get to your door on time, for air-conditioning and gas and cardboard and steel. Amazon—Prime in particular—has done a superlative job of making all those costs, all those moving parts, all those externalities invisible to the consumer.

The pandemic drove up demand for Amazon, and for labor: Last year, company profits shot up 70 percent, Bezos’s personal wealth grew by $70 billion, and 1,400 people a day joined the company’s workforce.

Amazon is so big that every sector of our economy has bent to respond to the new way of consuming that it invented. Prime isn’t just bad for Amazon’s workers—it’s bad for Target’s, and Walmart’s. It’s bad for the people behind the counter at your neighborhood hardware store and bookstore, if your neighborhood still has a hardware store and a bookstore. Amazon has accustomed shoppers to a pace and manner of buying that depends on a miracle of precision logistics even when it’s managed by one of the biggest companies on Earth. For the smaller guys, it’s downright impossible.

“Every decision we make is based upon the fact that Amazon can get these books cheaper and faster. The prevailing expectation is you can get anything online shipped for”— he scrunched his fingers into air quotes—“‘free,’ in one or two days. And there’s really only one company that can do that. They do that because they’re willing to push and exploit their workers.”

Just as abstaining from flying for moral reasons won’t stop sea-level rise, one person canceling Prime won’t do much of anything to a multinational corporation’s bottom line. “It’s statistically insignificant to Amazon. They’ll never feel it,” Caine told me. But, he said, “the small businesses in your neighborhood will absolutely feel the addition of a new customer. Individual choices do make a big difference to them.”

Whelan teaches a class at UW called Consuming Happiness, and she is fond of giving her students the adage that you can buy happiness—“if you spend your money in keeping with your values: spending prosocially, on experiences. Tons of research shows us this.”

The economist Thomas Malthus, now dismissed by mainstream economics as an interesting crank, is resurrected by Galor as the man who correctly saw that for millennia humanity had been trapped by its own fertility into subsistence, starvation and famine. As soon as material matters improved, the birthrate went up, so did the population, and the pressure on food resources exploded – returning humanity to starvation

great sections of Galor’s book are to be applauded

What broke the Malthusian armlock on humanity’s destiny, argues Galor, is the gradual quickening in the introduction of technologies that required mass education for their successful implementation. This triggered a virtuous circle of more innovation, more investment in education, more need to invest in the quality of children rather than quantity, so that birthrates declined sufficiently to allow living standards and life expectancy to rise. Because it was now rational to invest in children’s education rather than get them working, child labour and exploitation fell away

Above all he shows how cultural attitudes persist long after whatever concatenation of events brought them into being, so that countries and cultures that get ahead tend to stay ahead

He is scathing about the shock programmes of market liberalisation that accompanied the “Washington consensus”, ignorant of these persistent traits. Effective market economies can’t be built spontaneously in cultures that are hostile to the very conception.

his optimism about humanity shines through – prize its diversity, commit to educate its children and they will find their way to innovate and create a culture of growth

It’s a great way to look at the world, but a healthy recognition that power, capitalism, finance, the existence and structure of states and public philosophies – some right, some wrong – are all part of the brew would have made his account more realistic

Surprisingly, Iran is not happy with Azerbaijan’s victory. As openly as the Iranians ever do, they’ve threatened to use force against any changes to the borders of Armenia. Iran, a millenniums-old civilization central to a whole continent, cannot tolerate being walled off behind a chain of Turkish dependencies. India, similarly, is on Armenia’s side and has been sending a regular supply of weapons. One spur for such support, no doubt, is Pakistan’s joining the Azeri-Turkish alliance. In the jargon of American lawyers, this opens a whole new can of worms.

Then there’s Russia, whose absence from the denouement in Nagorno-Karabakh was striking. Even after the 1990s, Moscow still remained by far the biggest supplier of weapons to both Armenia and Azerbaijan. Their economies and societies, above all the elites and their corruption networks, were until very recently molded together. What we are seeing now, as both nations slip out of Russia’s orbit, might be the second round of Soviet collapse.

Once again, Armenia started the shift. In spring 2018 a tremendously hopeful uprising, reminiscent of 1989 in Central Europe, forced the post-communist elites to surrender power. Vladimir Putin was visibly displeased to meet Nikol Pashinyan, the anticorruption journalist and street rebel elected Armenia’s premier by an overwhelming majority. Mr. Pashinyan admittedly had neither political team nor experience; he is learning statesmanship on the job, often at great expense to his nation. Yet he managed to significantly reduce corruption, helping to unlock the legendary entrepreneurship of Armenians. Amid all the grim news, the Armenian economy, led by the I.T. sector, is registering impressive growth.

History has a habit of serving the same lessons with changed variables. In 1988, it was the dreamer Gorbachev stumbling over Nagorno-Karabakh that unwittingly shattered the world order. Today, Mr. Putin could become the second, much darker incarnation of the Kremlin aggrandizer going awry on all fronts. The consequences — from emboldening international aggression to reanimating the West under the banner of NATO — will be profound. As events in Nagorno-Karabakh show, the fragile post-Cold War order is giving way to something else entirely.

The Caucasus might seem strange and distant. Yet it might prove the wedge that turns the fortunes of world order. Trieste, Smyrna, Sarajevo, Danzig and Crimea were all such places. Let us not have to relearn history at the cost of yet another ethnic cleansing

That requires a movement that takes innovation as seriously as it takes affordability.

what Bastani sees clearly is that the world we should want requires more than redistribution. It requires inventions and advances that render old problems obsolete and new possibilities manifold.

the authors urge conservatives to tackle costs directly. Too often, Republican proposals to cut government spending are just shell games that shift costs onto individuals. The conservative enthusiasm for moving Medicare beneficiaries onto (often more expensive!) private plans “risks being little more than an accounting trick — a purely nominal change in ‘who pays’ that would do little to address the underlying sources of cost growth.”

For now, though, it’s Democrats who are starting to take supply-side concerns seriously.

A problem of our era is there’s too little utopian thinking, but one worthy exception is Aaron Bastani’s “Fully Automated Luxury Communism,” a leftist tract that puts the technologies in development right now — artificial intelligence, renewable energy, asteroid mining, plant- and cell-based meats, and genetic editing — at the center of a postwork, postscarcity vision.

“What if everything could change?” he asks. “What if, more than simply meeting the great challenges of our time — from climate change to inequality and aging — we went far beyond them, putting today’s problems behind us like we did before with large predators and, for the most part, illness? What if, rather than having no sense of a different future, we decided history hadn’t actually begun?”

There are sharp limits on supply in all of these sectors because regulators make it hard to increase supply (zoning laws make it difficult to build housing), training and hiring workers is expensive (adding classrooms means adding teachers and teacher aides, and expanding health insurance requires more doctors and nurses) or both. “This can result in a vicious cycle in which subsidies for supply-constrained goods or services merely push up prices, necessitating greater subsidies, which then push up prices, ad infinitum,” they write.

Progressives have long known to look for problems on the demand side of the economy — to ask whether there are goods and services people need that they cannot afford. That will make today fairer, but to ensure tomorrow is radically better, we need to look for the choke points in the future we imagine, the places where the economy can’t or won’t supply the things we need. And then we need to fix them.

In a world where two-thirds of emissions now come from middle-income countries like China and India, the only way for humanity to both address climate change and poverty is to invent our way to clean energy that is plentiful and cheap and then spend enough to rapidly deploy it.

It is true that European countries free-ride off the high cost we pay for drugs, because it’s the U.S. market that drives innovation. But that doesn’t mean we’d be better off paying their prices, if that meant new drug development slowed. We don’t just want everyone to have health insurance in the future. We want them to be healthier, freed from diseases and pain that even the best health insurance today cannot cure or ease.

It’s ludicrous to say that the pharmaceutical system we have now is oriented toward innovation. It’s oriented toward profit; sometimes that intersects with innovation and sometimes it doesn’t.

We should combine price controls with new policies to encourage drug development. That could include everything from more funding of basic research to huge prizes for discovering drugs that treat particular conditions to more public funding for drug trials.

Years ago, Bernie Sanders had an interesting proposal for creating a system of pharmaceutical prizes in which companies could make millions or billions for inventing drugs that cured certain conditions, and those drugs would be immediately released without exclusive patent protections. Focusing on the need to make new drugs affordable while ignoring the need to make more of them exist is like trimming a garden you’ve stopped watering.

this is a lesson progressives are, increasingly, learning. This is clearest on climate. Much of the spending in the Biden agenda is dedicated to increasing the supply of renewable energy and advanced batteries while building the supply of carbon-neutral transportation options.

In a blog post, Jared Bernstein, a member of President Biden’s Council of Economic Advisers, and Ernie Tedeschi, a senior policy economist for the council, framed the Biden agenda as “an antidote for inflationary pressure” because much of it expands the long-term supply of the economy.

Climate change is the most pressing example

look closely and you can see something new and overdue emerging in American politics: supply-side progressivism.

Peter Thiel has lost interest in democracy.

Thiel has cultivated an image as a man of ideas, an intellectual who studied philosophy with René Girard and owns first editions of Leo Strauss in English and German. Trump quite obviously did not share these interests, or Thiel’s libertarian principles.

For years, Thiel had been saying that he generally favored the more pessimistic candidate in any presidential race because “if you’re too optimistic, it just shows you’re out of touch.” He scorned the rote optimism of politicians who, echoing Ronald Reagan, portrayed America as a shining city on a hill. Trump’s America, by contrast, was a broken landscape, under siege.

Thiel is not against government in principle, his friend Auren Hoffman (who is no relation to Reid) says. “The ’30s, ’40s, and ’50s—which had massive, crazy amounts of power—he admires because it was effective. We built the Hoover Dam. We did the Manhattan Project,” Hoffman told me. “We started the space program.”

Their failure to make the world conform to his vision has soured him on the entire enterprise—to the point where he no longer thinks it matters very much who wins the next election.

His libertarian critique of American government has curdled into an almost nihilistic impulse to demolish it.

“Voting for Trump was like a not very articulate scream for help,” Thiel told me. He fantasized that Trump’s election would somehow force a national reckoning. He believed somebody needed to tear things down—slash regulations, crush the administrative state—before the country could rebuild.

He admits now that it was a bad bet.

“There are a lot of things I got wrong,” he said. “It was crazier than I thought. It was more dangerous than I thought. They couldn’t get the most basic pieces of the government to work. So that was—I think that part was maybe worse than even my low expectations.”

eid Hoffman, who has known Thiel since college, long ago noticed a pattern in his old friend’s way of thinking. Time after time, Thiel would espouse grandiose, utopian hopes that failed to materialize, leaving him “kind of furious or angry” about the world’s unwillingness to bend to whatever vision was possessing him at the moment

Thiel. He is worth between $4 billion and $9 billion. He lives with his husband and two children in a glass palace in Bel Air that has nine bedrooms and a 90-foot infinity pool. He is a titan of Silicon Valley and a conservative kingmaker.

“Peter tends to be not ‘glass is half empty’ but ‘glass is fully empty,’” Hoffman told me.

he tells the story of his life as a series of disheartening setbacks.

He met Mark Zuckerberg, liked what he heard, and became Facebook’s first outside investor. Half a million dollars bought him 10 percent of the company, most of which he cashed out for about $1 billion in 2012.

Thiel made some poor investments, losing enormous sums by going long on the stock market in 2008, when it nose-dived, and then shorting the market in 2009, when it rallied

on the whole, he has done exceptionally well. Alex Karp, his Palantir co-founder, who agrees with Thiel on very little other than business, calls him “the world’s best venture investor.”

Thiel told me this is indeed his ambition, and he hinted that he may have achieved it.

He longs for radical new technologies and scientific advances on a scale most of us can hardly imagine

He longs for a world in which great men are free to work their will on society, unconstrained by government or regulation or “redistributionist economics” that would impinge on their wealth and power—or any obligation, really, to the rest of humanity

Did his dream of eternal life trace to The Lord of the Rings?

He takes for granted that this kind of progress will redound to the benefit of society at large.

More than anything, he longs to live forever.

Calling death a law of nature is, in his view, just an excuse for giving up. “It’s something we are told that demotivates us from trying harder,”

Thiel grew up reading a great deal of science fiction and fantasy—Heinlein, Asimov, Clarke. But especially Tolkien; he has said that he read the Lord of the Rings trilogy at least 10 times. Tolkien’s influence on his worldview is obvious: Middle-earth is an arena of struggle for ultimate power, largely without government, where extraordinary individuals rise to fulfill their destinies. Also, there are immortal elves who live apart from men in a magical sheltered valley.

But his dreams have always been much, much bigger than that.

Yes, Thiel said, perking up. “There are all these ways where trying to live unnaturally long goes haywire” in Tolkien’s works. But you also have the elves.

How are the elves different from the humans in Tolkien? And they’re basically—I think the main difference is just, they’re humans that don’t die.”

During college, he co-founded The Stanford Review, gleefully throwing bombs at identity politics and the university’s diversity-minded reform of the curriculum. He co-wrote The Diversity Myth in 1995, a treatise against what he recently called the “craziness and silliness and stupidity and wickedness” of the left.

Thiel laid out a plan, for himself and others, “to find an escape from politics in all its forms.” He wanted to create new spaces for personal freedom that governments could not reach

But something changed for Thiel in 2009

he people, he concluded, could not be trusted with important decisions. “I no longer believe that freedom and democracy are compatible,” he wrote.

ven more notable one followed: “Since 1920, the vast increase in welfare beneficiaries and the extension of the franchise to women—two constituencies that are notoriously tough for libertarians—have rendered the notion of ‘capitalist democracy’ into an oxymoron.”

By 2015, six years after declaring his intent to change the world from the private sector, Thiel began having second thoughts. He cut off funding for the Seasteading Institute—years of talk had yielded no practical progress–and turned to other forms of escape

The fate of our world may depend on the effort of a single person who builds or propagates the machinery of freedom,” he wrote. His manifesto has since become legendary in Silicon Valley, where his worldview is shared by other powerful men (and men hoping to be Peter Thiel).

Thiel’s investment in cryptocurrencies, like his founding vision at PayPal, aimed to foster a new kind of money “free from all government control and dilution

His decision to rescue Elon Musk’s struggling SpaceX in 2008—with a $20 million infusion that kept the company alive after three botched rocket launches—came with aspirations to promote space as an open frontier with “limitless possibility for escape from world politics

It was seasteading that became Thiel’s great philanthropic cause in the late aughts and early 2010s. The idea was to create autonomous microstates on platforms in international waters.

“There’s zero chance Peter Thiel would live on Sealand,” he said, noting that Thiel likes his comforts too much. (Thiel has mansions around the world and a private jet. Seal performed at his 2017 wedding, at the Belvedere Museum in Vienna.)

As he built his companies and grew rich, he began pouring money into political causes and candidates—libertarian groups such as the Endorse Liberty super PAC, in addition to a wide range of conservative Republicans, including Senators Orrin Hatch and Ted Cruz

Sam Altman, the former venture capitalist and now CEO of OpenAI, revealed in 2016 that in the event of global catastrophe, he and Thiel planned to wait it out in Thiel’s New Zealand hideaway.

When I asked Thiel about that scenario, he seemed embarrassed and deflected the question. He did not remember the arrangement as Altman did, he said. “Even framing it that way, though, makes it sound so ridiculous,” he told me. “If there is a real end of the world, there is no place to go.”

You’d have eco farming. You’d turn the deserts into arable land. There were sort of all these incredible things that people thought would happen in the ’50s and ’60s and they would sort of transform the world.”

None of that came to pass. Even science fiction turned hopeless—nowadays, you get nothing but dystopias

He hungered for advances in the world of atoms, not the world of bits.

Founders Fund, the venture-capital firm he established in 200

The fund, therefore, would invest in smart people solving hard problems “that really have the potential to change the world.”

This was not what Thiel wanted to be doing with his time. Bodegas and dog food were making him money, apparently, but he had set out to invest in transformational technology that would advance the state of human civilization.

He told me that he no longer dwells on democracy’s flaws, because he believes we Americans don’t have one. “We are not a democracy; we’re a republic,” he said. “We’re not even a republic; we’re a constitutional republic.”

“It was harder than it looked,” Thiel said. “I’m not actually involved in enough companies that are growing a lot, that are taking our civilization to the next level.”

Founders Fund has holdings in artificial intelligence, biotech, space exploration, and other cutting-edge fields. What bothers Thiel is that his companies are not taking enough big swings at big problems, or that they are striking out.

In at least 20 hours of logged face-to-face meetings with Buma, Thiel reported on what he believed to be a Chinese effort to take over a large venture-capital firm, discussed Russian involvement in Silicon Valley, and suggested that Jeffrey Epstein—a man he had met several times—was an Israeli intelligence operative. (Thiel told me he thinks Epstein “was probably entangled with Israeli military intelligence” but was more involved with “the U.S. deep state.”)

Buma, according to a source who has seen his reports, once asked Thiel why some of the extremely rich seemed so open to contacts with foreign governments. “And he said that they’re bored,” this source said. “‘They’re bored.’ And I actually believe it. I think it’s that simple. I think they’re just bored billionaires.”

he has a sculpture that resembles a three-dimensional game board. Ascent: Above the Nation State Board Game Display Prototype is the New Zealander artist Simon Denny’s attempt to map Thiel’s ideological universe. The board features a landscape in the aesthetic of Dungeons & Dragons, thick with monsters and knights and castles. The monsters include an ogre labeled “Monetary Policy.” Near the center is a hero figure, recognizable as Thiel. He tilts against a lion and a dragon, holding a shield and longbow. The lion is labeled “Fair Elections.” The dragon is labeled “Democracy.” The Thiel figure is trying to kill them.

When I asked Thiel to explain his views on democracy, he dodged the question. “I always wonder whether people like you … use the word democracy when you like the results people have and use the word populism when you don’t like the results,” he told me. “If I’m characterized as more pro-populist than the elitist Atlantic is, then, in that sense, I’m more pro-democratic.”

“I couldn’t find them,” he said. “I couldn’t get enough of them to work.

He said he has no wish to change the American form of government, and then amended himself: “Or, you know, I don’t think it’s realistic for it to be radically changed.” Which is not at all the same thing.

When I asked what he thinks of Yarvin’s autocratic agenda, Thiel offered objections that sounded not so much principled as practical.

“I don’t think it’s going to work. I think it will look like Xi in China or Putin in Russia,” Thiel said, meaning a malign dictatorship. “It ultimately I don’t think will even be accelerationist on the science and technology side, to say nothing of what it will do for individual rights, civil liberties, things of that sort.”

Still, Thiel considers Yarvin an “interesting and powerful” historian

he always talks about is the New Deal and FDR in the 1930s and 1940s,” Thiel said. “And the heterodox take is that it was sort of a light form of fascism in the United States.”

Yarvin, Thiel said, argues that “you should embrace this sort of light form of fascism, and we should have a president who’s like FDR again.”

Did Thiel agree with Yarvin’s vision of fascism as a desirable governing model? Again, he dodged the question.

“That’s not a realistic political program,” he said, refusing to be drawn any further.

ooking back on Trump’s years in office, Thiel walked a careful line.

A number of things were said and done that Thiel did not approve of. Mistakes were made. But Thiel was not going to refashion himself a Never Trumper in retrospect.

“I have to somehow give the exact right answer, where it’s like, ‘Yeah, I’m somewhat disenchanted,’” he told me. “But throwing him totally under the bus? That’s like, you know—I’ll get yelled at by Mr. Trump. And if I don’t throw him under the bus, that’s—but—somehow, I have to get the tone exactly right.”

Thiel knew, because he had read some of my previous work, that I think Trump’s gravest offense against the republic was his attempt to overthrow the election. I asked how he thought about it.

“Look, I don’t think the election was stolen,” he said. But then he tried to turn the discussion to past elections that might have been wrongly decided. Bush-Gore in 2000, for instanc

He came back to Trump’s attempt to prevent the transfer of power. “I’ll agree with you that it was not helpful,” he said.

there is another piece of the story, which Thiel reluctantly agreed to discuss

Puck reported that Democratic operatives had been digging for dirt on Thiel since before the 2022 midterm elections, conducting opposition research into his personal life with the express purpose of driving him out of politic

Among other things, the operatives are said to have interviewed a young model named Jeff Thomas, who told them he was having an affair with Thiel, and encouraged Thomas to talk to Ryan Grim, a reporter for The Intercept. Grim did not publish a story during election season, as the opposition researchers hoped he would, but he wrote about Thiel’s affair in March, after Thomas died by suicide.

He deplored the dirt-digging operation, telling me in an email that “the nihilism afflicting American politics is even deeper than I knew.”

He also seemed bewildered by the passions he arouses on the left. “I don’t think they should hate me this much,”

he spoke at the closed-press event with a lot less nuance than he had in our interviews. His after-dinner remarks were full of easy applause lines and in-jokes mocking the left. Universities had become intellectual wastelands, obsessed with a meaningless quest for diversity, he told the crowd. The humanities writ large are “transparently ridiculous,” said the onetime philosophy major, and “there’s no real science going on” in the sciences, which have devolved into “the enforcement of very curious dogmas.”

“Diversity—it’s not enough to just hire the extras from the space-cantina scene in Star Wars,” he said, prompting laughter.

Nor did Thiel say what genuine diversity would mean. The quest for it, he said, is “very evil and it’s very silly.”

“the silliness is distracting us from very important things,” such as the threat to U.S. interests posed by the Chinese Communist Party.

“Whenever someone says ‘DEI,’” he exhorted the crowd, “just think ‘CCP.’”

Somebody asked, in the Q&A portion of the evening, whether Thiel thought the woke left was deliberately advancing Chinese Communist interests

“It’s always the difference between an agent and asset,” he said. “And an agent is someone who is working for the enemy in full mens rea. An asset is a useful idiot. So even if you ask the question ‘Is Bill Gates China’s top agent, or top asset, in the U.S.?’”—here the crowd started roaring—“does it really make a difference?”

About 10 years ago, Thiel told me, a fellow venture capitalist called to broach the question. Vinod Khosla, a co-founder of Sun Microsystems, had made the Giving Pledge a couple of years before. Would Thiel be willing to talk with Gates about doing the same?

Thiel feels that giving his billions away would be too much like admitting he had done something wrong to acquire them

He also lacked sympathy for the impulse to spread resources from the privileged to those in need. When I mentioned the terrible poverty and inequality around the world, he said, “I think there are enough people working on that.”

besides, a different cause moves him far more.

Should Thiel happen to die one day, best efforts notwithstanding, his arrangements with Alcor provide that a cryonics team will be standing by.

Then his body will be cooled to –196 degrees Celsius, the temperature of liquid nitrogen. After slipping into a double-walled, vacuum-insulated metal coffin, alongside (so far) 222 other corpsicles, “the patient is now protected from deterioration for theoretically thousands of years,” Alcor literature explains.

All that will be left for Thiel to do, entombed in this vault, is await the emergence of some future society that has the wherewithal and inclination to revive him. And then make his way in a world in which his skills and education and fabulous wealth may be worth nothing at all.

I wondered how much Thiel had thought through the implications for society of extreme longevity. The population would grow exponentially. Resources would not. Where would everyone live? What would they do for work? What would they eat and drink? Or—let’s face it—would a thousand-year life span be limited to men and women of extreme wealth?

“Well, I maybe self-serve,” he said, perhaps understating the point, “but I worry more about stagnation than about inequality.”

Thiel is not alone among his Silicon Valley peers in his obsession with immortality. Oracle’s Larry Ellison has described mortality as “incomprehensible.” Google’s Sergey Brin aspires to “cure death.” Dmitry Itskov, a leading tech entrepreneur in Russia, has said he hopes to live to 10,000.

. “I should be investing way more money into this stuff,” he told me. “I should be spending way more time on this.”

You haven’t told your husband? Wouldn’t you want him to sign up alongside you?“I mean, I will think about that,” he said, sounding rattled. “I will think—I have not thought about that.”

No matter how fervent his desire, Thiel’s extraordinary resources still can’t buy him the kind of “super-duper medical treatments” that would let him slip the grasp of death. It is, perhaps, his ultimate disappointment.

There are all these things I can’t do with my money,” Thiel said.

One of the most fundamental problems with recycling is that we don’t really know how much of it actually happens because of an opaque global system that too often relies on measuring the material that arrives at the front door of the facility rather than what comes out

What we do know is that with plastics, at least, the amount being recycled is much less than most of us assumed.

According to the Environmental Protection Agency, two of the most commonly used plastics in America — PET (used in soda bottles) and HDPE (used in milk jugs, among other things) — are “widely recycled,” but the rate is really only about 30 percent

Other plastics, like soft wraps and films, sometimes called No. 4 plastics, are not widely accepted in curbside collections.

The E.P.A. estimates that just 2.7 percent of polypropylene — the hard plastic known as No. 5, used to make furniture and cleaning bottles — was reprocessed in 2018

Crunch the sums, and only around 10 percent of plastics in the United States is recycle

the landfill-happy United States is far worse at recycling than other major economies. According to the E.P.A., America’s national recycling rate, just 32 percent, is lower than Britain’s 44 percent, Germany’s 48 percent and South Korea’s 58 percent.

the scientific research over decades has repeatedly found that in almost all cases, recycling our waste materials has significant environmental benefits

We need clearer labeling of what is and is not actually recyclable and transparency around true recycling rates

Recycling steel, for example, saves 72 percent of the energy of producing new steel; it also cuts water use by 40 percent

Recycling a ton of aluminum requires only about 5 percent of the energy and saves almost nine tons of bauxite from being hauled from mines

Even anti-plastics campaigners agree that recycling plastics, like PET, is better for the climate than burning them — a likely outcome if recycling efforts were to be abandoned.

The economic perks are significant, too. Recycling creates as many as 50 jobs for every one created by sending waste to landfills; the E.P.A. estimates that recycling and reuse accounted for 681,000 jobs in the United States alone.

That’s even more true in the developing world, where waste pickers rely on recycling for income.

before we abandon recycling, we should first try to fix it

Companies should be phasing out products that can’t be recycled and designing more products that are easier to recycle and reuse rather than leaving sustainability to their marketing departments.

Lawmakers can help by passing new laws, as cities like Seattle and San Francisco have done, to help increase recycling rates and drive investment into the sector.

Governments can also ban or restrict many problematic plastics to reduce the amount of needless plastics in our everyday lives, for instance in food packaging

According to a 2015 analysis by scientists at the University of Southampton in England, recycling a majority of commonly tossed-out waste materials resulted in a net reduction in greenhouse gas emissions

Greater safety regulations are needed to reduce toxic chemical contents and microplastic pollution caused by the recycling process.

consumers can do their bit by buying recycled products (and buying less and reusing more).

Yes, recycling is broken, but abandon it too soon, and we risk going back to the system of decades past, in which we dumped and burned our garbage without care, in our relentless quest for more. Do that, and like the recycling symbol itself, we really will be going in circles.

Migrants are in politicians’ cross hairs, threatened with deportation and reduced support.

And the country’s commitment to fighting antisemitism seems not only to be failing but also to have given rise to an outpouring of anti-Muslim sentiment.

The truth is that Germany never fully deserved its vaunted reputation. The export-led economy depended on a large low-wage sector and the country’s position in the European Union.

The far right — ensconced in parts of the state — never went away, and the celebrated Willkommenskultur, short lived in any case, couldn’t conceal enduring xenophobia and suspicion about foreigners.

The culture of remembrance and historical reckoning, too, was far from perfect

Even so, the sudden coarsening of public life in the service of a warped sense of national identity is striking. Germany, supposed model of fair-minded moderation, has become mean.

the government’s habit of conflating criticism of Israel with antisemitism has had some disturbing effects. Most notably, it has created an atmosphere where advocacy for Palestinian rights or a cease-fire in Gaza is seen as suspect, running afoul of the state-mandated position

The police, for example, have cracked down on pro-Palestinian protests in several cities and outright banned numerous demonstrations.

politicians, seizing on some evidence of antisemitic displays at pro-Palestinian protests to link Muslims and migrants with antisemitism, have taken the opportunity to advance an anti-migrant agenda

When Mr. Scholz was asked about antisemitism among people “with Arab roots” in an October interview, he said Germany needed to sort out more precisely who is allowed to come into the country and who is not. “We are limiting irregular migration,” Mr. Scholz pronounced, before adding a little later, “We must finally deport on a large scale.”

More spending cuts are expected. In an economy on the cusp of recession — Germany is the only country among Group of 7 nations not expected to register growth in 2023 — this is bad news for Germans, who, according to a recent study, are predominantly worried about living expenses, increasing rents, tax hikes and cuts to benefits.

everal other high-ranking politicians have also pushed the need for stricter border controls in the aftermath of Oct. 7. Friedrich Merz, leader of the opposition Christian Democrats, spoke out against taking in refugees from Gaza, claiming that Germany already has “enough antisemitic young men in the country.”

In early November, after months of intense discussions, the federal government and the 16 state governors agreed on stricter measures to curb the number of migrants entering the country. Asylum seekers now receive less cash and have to wait twice as long to get on welfare, taking even more autonomy away from their lives. According to the new plan, Germany will also extend its border checks, speed up asylum procedures and look into the idea of offshoring asylum centers.

Worryingly, antisemitic incidents have been on the rise in recent weeks

it is troubling that Germany, of all places, should frame antisemitism as an imported problem. Crime statistics show that a vast majority of antisemitic crimes are committed by right-wing extremists and not by Islamists, let alone migrants or Muslims.

Germany’s leaders, aided by major media figures, are using the fight against antisemitism as a pretext to encourage racist resentment and anti-migrant sentiment.

Alternative for Germany, which has pulled the political center of gravity to the right since its formation in 2013, has never been stronger. Polling at over 20 percent, the party and its concerns, once fringe, are firmly mainstream. Questions of national identity and immigration dominate political discussion, in keeping with a broader rise of nativism across Europe.

The country’s anti-migrant turn is often justified in terms of economic concerns.

Opponents of immigration point to the underfunding of schools and hospitals, the lack of affordable housing, the miserable public transport and the general decline of the domestic economy.

German infrastructure is indeed in crisis. But this has little to do with immigration and everything to do with austerity policies that have been in place for the past two decades.

Central to those policies is the so-called debt brake. Enshrined in the German Constitution in 2009, it restricts the annual public deficit to 0.35 percent of gross domestic product, ensuring strict limits on spending.

The effects have been immediate: Mr. Lindner announced an early end to a price cap on energy bills, making it likely that German citizens will have to pay more for their heating in the coming year.

Christian Lindner, the finance minister and head of the center-right Free Democratic Party, called for a fundamental change in immigration policy to “reduce the appeal of the German welfare state.”

It’s bad news for the government, too. The coalition, composed of the Social Democrats, Greens and Free Democrats, came to office in 2021 with a mandate to modernize the country and lead it in a progressive direction

Instead, with programs of fiscal restriction and stances of social reaction, Germany’s leaders are only serving the far-right party they claim to want to keep at bay.

The United States, Europe and China are, in different ways, all speeding up the transition to a green economy.

The first to go is the era of easy money. This isn’t a short-term response to President Biden’s much-needed post-pandemic fiscal stimulus. (In fact, that stimulus is exactly what kept the U.S. economy resilient while peers flagged, according to a recent New York Fed report.

This is a return to an economy that is more rational and hardheaded. Not all companies, or stocks, are created equal. Many have too much debt on their books.

Years of easy money propped up everything. A higher cost of capital will be painful temporarily, but it will give markets what they’ve needed for years — a reason for investors to sort out risky investments

Cheap energy is over, too. One outcome of Russia’s invasion of Ukraine is the realization (especially in Europe) that getting crucial commodities from autocrats is never a good idea

At home, that means more wind and solar farms, more electric cars and more diverse supply chains to build it all. This will be inflationary in the short term, as it means manufacturing new products and investing in new technologies

The bond market won’t like it, and there will be calls to return to the old ways, particularly if inflation continues to bite.

But it will be strongly deflationary if we can make the shift.

Finally, the era of cheap labor has ended

Wages are rising, and we’ve seen more labor activity, including strikes, this year than in the past four decades. More will follow. This is an appropriate response to decades of wage stagnation amid record corporate profits

Unions, but also non-union workers in many areas of the economy including construction and manufacturing, have been buoyed by the largest infrastructure investment since the 1950s — which has given them negotiating power that they haven’t had in years

Meanwhile, companies in the service sector are reconsidering their usual hire-and-fire-fast approach, having been trained by the pandemic to hang onto employees as long as possible.

Yes, artificial intelligence could throw a spammer in all this. CEOs are looking to use it to bring down labor costs. But workers today are becoming more proactive about demanding more control of both trade and technology;

The end of cheap is a huge shift. It means Main Street rather than Wall Street will drive the economy. It will make for a more balanced and resilient economy.

All of that is going away or gone. A decade and a half of go-go speculation is finished. The era of cheap is kaput.

cheap isn’t really cheap. It’s just putting your troubles on layaway.

In practical terms, that means weakening measures first put in place in the 19th century that turned federal employment from a partisan spoils system into a professional workforce, and setting aside federal laws intended to insulate some areas of policy-making and enforcement from political interference.

Underpinning the effort is what is called the unitary executive principle, which draws from a constitutional clause that vests “the executive power” in the president. Conservative leaders argue that the clause gives the president virtually unchecked authority over the executive branch.

Conservative justices have signaled support for the unitary executive principle and repeatedly espoused skepticism of federal agencies, signaling they could have sympathy for Trump’s contention that the federal bureaucracy must be reined in. 

f he wins in 2024, Trump would find a friendlier court than the one that sometimes frustrated him. Amy Coney Barrett, Trump’s third pick for the high court, was seated just months before Trump left office, expanding its conservative majority and reducing the sway of Chief Justice John Roberts, who had joined the then four-member liberal bloc in finding Trump officials cut legal corners in trying to alter the census and cancel the DACA program.

Still, hurdles remain. There were occasions when each of Trump’s Supreme Court appointees joined with liberals or Roberts against conservative objectives.

Lawmakers of both parties, protective of their own power, would likely object to efforts by Trump to reassert what is known as the impoundment authority and allow a president to refuse to spend money appropriated by Congress. And former Trump administration officials say his focus can drift from one

some people who know him expressed concern that an emboldened Trump could push the limits of the law far beyond what he did in his first term, and would surround himself with advisers who are unwilling to resist his impulses. 

“I’m sympathetic to some of the initiatives that are being considered,” said Barr, who has been critical of the former president. “My concern generally is that the president is very imprudent and very excessive in anything he does, and therefore will end up doing things that end up actually curtailing executive power, rather than expanding it.”

the Supreme Court could be more open to the president taking more control over independent agencies and limiting protections for civil servants. 

“It’s hard to predict how far [the Supreme Court] would go. But I think there’s less judicial restraint and there’s more willingness to allow what were once seen as extreme or fringe constitutional arguments on the right to be entertained,” said Shalev Roisman, a University of Arizona law professor.

Trump advisers would seek greater power to hire and fire career federal employees so they can select who carries out presidential policies throughout the government. In 2020, Trump issued an executive order that could have stripped thousands of federal employees of civil service protections and removed competitive exams as a hiring criterion. President Biden rescinded that order, but Trump advisers are planning to resurrect it. 

Although the Supreme Court’s conservative majority holds a robust view of the unitary executive theory, it is unlikely there are sufficient votes to fully scrap the merit-based employment that has been part of the federal firmament for 140 years. But the president does have authority to manage the civil service system, and Trump could find a court open to expanding the class of employees that can be hired and fired at the White House’s discretion.

Trump advisers also are considering a broader challenge to Supreme Court precedent, hoping to win new authority to replace members of independent commissions at will—a step some justices have signaled they might consider. 

Conservative officials involved in the discussions reject the notion that Trump is trying to hoard unchecked authority, arguing that they want to revert to a vision of the presidency outlined in the Constitution. In their view, agencies essentially are extensions of the president and their employees serve at his pleasure. In a second Trump term, Vought said, “the bureaucracy would care more about what the president thinks and what his agenda is.”

Biden has ramped up his criticism of Trump, homing in on the former president’s efforts to expand his power. “This MAGA threat is the threat to the brick and mortar of our democratic institutions,”

The origins of conservatives’ efforts date back to 1982, when then-President Ronald Reagan established a commission to improve government efficiency, assembling more than 100 private-sector figures with the mandate to “drain the swamp” in Washington. The group, known as the Grace Commission, released a 47-volume report with more than 2,400 recommendations, including proposals to rethink protections for government workers.

Many of the recommendations were never implemented.

“It’s been hard to make progress on this front,” said ​​Veronique de Rugy, a senior research fellow at George Mason University’s Mercatus Center. “At its core, the incentives within government are for more spending, more growth, more intervention.”

“These are technologies that are supposed to be so democratized and universal, but they’re so heavily influenced by one person,”

“Everything they do is [framed as] a step toward much larger greatness and the transformation of society. But these are just cults of personality. They sell a product.”

during

“These are private-sector people making money off something that serves a public function. And when they take a turn because of very personal, very individual decisions, where a handful of people are shaping the trajectory of these companies, maybe even the existence of these companies, that’s something new we all have to deal with.”

where the other firms sold phones and search engines, Musk and Altman championed their work as a public mission for protecting mankind, with a for-profit business attached. It is notable that as private companies, they don’t have to report to federal regulators or to shareholders, who can vote down proposals or push back against their work.

The corporate storytelling that pushes technology as a force for public harmony has proved to be one of Silicon Valley’s great marketing tools, said Margaret O’Mara, a professor at the University of Washington who studies the history of technology. But it’s also obscured the dangers of centralizing power and subjecting it to leaders’ personal whim

“Silicon Valley has for years adopted this messaging and mood that it’s all about radical transparency and openness — remember Google’s ‘Don’t be evil’ motto? — and this idea of a kinder, gentle capitalism that’s going to change the world for the better,” she said.

“Then you have these moments of reckoning and remember: It’s capitalism. Some tech billionaires lost, and some other ones are winning,”

Jeff Hauser, the head of the left-leaning advocacy group Revolving Door Project, said in a statement Wednesday that Summers’s role on the board was a sign OpenAI was “unserious” about its oversight, and that it “should accelerate concerns that AI will be bad for all but the richest and most opportunistic amongst us.”

Ro Khanna, who represents parts of Silicon Valley, said in an interview that the OpenAI turmoil underscores concerns that “a few people, no matter how talented, no matter how knowledgeable, can’t be making the rules for a society on a technology that is going to have such profound consequences.”

“We’ve seen a parade of these big tech leaders come to D.C.,” Khanna said. “I think highly of them, but they’re not the ones who should be leading the conversation on the regulatory framework, what safeguards we need.”

Musk on Tuesday posted a message, under a picture of him holding a katana, saying, “There is a large graveyard filled with my enemies. I do not wish to add to it, but will if given no choice.”

It’s only in the last few months that the number of new referrals taken on by hospitals has reached the levels seen in 2019.

Now maybe this hasn’t happened because that apparent pent-up demand wasn’t really there. Perhaps people recovered without medical assistance or found other ways to deal with it. But when you dig into the data it looks more like there is considerable demand suppression going on to try and keep numbers as manageable as possible.

New listings this week were up 4% from the previous year, a factor that may tip the balance of what has recently been a white hot seller’s market.

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.

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.”

At the opening of the plant, South Africa’s President Cyril Ramaphosa evoked the language of the independence movement as he spoke of the need to “shed those colonial chains” and become self-sufficient. “Africa should no longer go cap in hand to the Western world begging and begging for vaccines” he announced. “Africa should no longer be last in line.”

Now, spurred by the pandemic, Africa’s small but growing biotechnology sector is racing to catch up.

Africa remains the world’s least vaccinated continent, with barely 10 percent of its 1.3 billion inhabitants fully inoculated against the disease. Vaccine hesitancy has played a part, but Kagina says lack of access to vaccines is also a major factor. Since the first COVID-19 vaccines were approved in December 2020 there has been glaring inequity in the way they have been distributed.

Meanwhile, the African Union-sponsored Partnership for African Vaccine Manufacturing has brought together key stakeholders from across the continent to help streamline efforts. But Cape Town has emerged as something of a continental hub of COVID vaccine production.

Since 2014, the U.S. has spent tens of millions of dollars toward arming Ukraine with hardware, software and training to secure its critical infrastructure. Those efforts have ramped up in recent months.

But Russian disinformation has become less effective

When war broke out in eastern Ukraine in 2014, fake news from Russia flooded over the border with the aim of instilling panic in parts of the country with greater sympathy for Russia, like Crimea, turning them away from the Ukrainian government and toward Russia.

Russian state-owned TV broadcast false stories about "fascists" in the streets of Kyiv, a ban on the Russian language in Ukraine, and looming food riots and rationing. One story, broadcast on Russian state TV, claimed that Ukrainian soldiers had brutally murdered and crucified a three-year-old boy.

One example: A series of bomb scares were called into Ukrainian schools in recent weeks, but many parents shrugged them off.

Authorities in Kyiv are working to prepare the city

Although an invasion feels unlikely to many who live in Kyiv, city officials say they are not as prepared as they'd like to be.

Kyiv has thousands of bomb shelters that date back to the Soviet era, when some of the USSR's nuclear arsenal was based in Ukraine. Over the past several months, authorities have been working to bring as many shelters as possible back into operation. But many are still unusable. Some have been flooded, others are inaccessible. Some shelters have even been taken over by barbershops or bakeries that have set up shop inside. "Authorities will have to take care of this situation and take it more seriously," Mykhailova said.

Ukraine's military has strengthened since 2014

"Ukrainian troops are well-trained, they're well-equipped and they're very motivated. Ukrainians in general and the Ukrainian military are very patriotic. They love Ukraine. They're willing to fight to save it," said Kristina Kvien, the top U.S. diplomat in Kyiv, in an interview with All Things Considered on Friday.

That improvement has come with major help from international donors, primarily the United States. The U.S. has committed more than $5.4 billion in aid to Ukraine since 2014, according to the State Department. About half that total has been security assistance, with the Biden administration announcing another $200 million on Wednesday. Over the years, that military aid has taken many forms: Humvees, patrol boats, counter-artillery radar, a joint training center in western Ukraine.

Russians don’t run on their banks, because they believe that in a real crunch, the Russian central bank would provide the needed cash. After all, the Russian central bank holds enormous quantities of reserves: $630 billion at the last tally

To finance its war on Ukraine, Russia might have hoped to draw down its foreign-currency reserves with Western central banks.

Not so fast, argues Bernstam. What does it mean that Russia “has” X or Y in foreign reserves? Where do these reserves exist? The dollars, euros, and pounds owned by the Russian central bank—Russia may own them, but Russia does not control them. Almost all those hundreds of billions of Russian-owned assets are controlled by foreign central banks.

We, the people of the Western world collectively owe the Russian state hundreds of billions of dollars. That’s not our problem. That’s Russia’s problem, an enormous one. Because one thing any debtor can do is … not pay when asked.

With $630 billion in reserves, there is no way Russia would ever run out of foreign currency. You’ve probably read that assertion many times in the past few days

All of this requires the cooperation of the Fed or ECB in the first place. The Fed or ECB could say: “Nope. Sorry. The Russian central bank’s money is frozen. No transfers of dollars or euros from the Russian central bank to commercial banks. No transfers from commercial banks to businesses or individuals. For all practical purposes, you’re broke.”

if Russia’s foreign income slows at the same time as it is waging a hugely costly war against Ukraine, it will need its reserves badly. And suddenly, it will be as if the money disappeared. Every Russian person, individual, or state entity with any kind of obligation denominated in foreign currency would be shoved toward default.

Of course, long before any of that happened, everybody involved in the transactions would have panicked.

The ruble would cease to be a convertible currency. It would revert to being the pseudo-currency of Soviet times: something used for record-keeping purposes inside Russia, but without the ability to buy goods or services on international markets. The Russian economy would close upon itself, collapsing into as much self-sufficiency as possible for a country that produces only basic commodities.

Russia imports almost everything its citizens eat, wear, and use. And in the modern digitized world, that money cannot be used without the agreement of somebody’s central bank. You could call it Bernstam’s law: “Do not fight with countries whose currencies you use as a reserve currency to maintain your own.”

There is one exception to the rule about reserves as notations: About $132 billion of Russia’s reserves takes the form of physical gold in vaults inside Russia

Only one customer is rich enough to take significant gold from a sanctioned nation like Russia: China.

that does not solve the real problem, which is not to buy specific items from specific places, but to sustain the ruble as a currency that commands confidence from Russia’s own people. China cannot do that for Russians. Only the Western central banks can.

Putin launched his war against Ukraine in part to assert Russia’s great-power status—a war to make Russia great again. Putin seemingly did not understand that violence is only one form of power, and not ultimately the most decisive

The power Putin is about to feel is the power of producers against gangsters, of governments that inspire trust against governments that rule by fear.

Russia depends on the dollar, the euro, the pound, and other currencies in ways that few around Putin could comprehend. The liberal democracies that created those trusted currencies are about to make Putin’s cronies feel what they never troubled to learn. Squeeze them.