Author: Ian Welsh Page 10 of 436

The kidnapping of Maduro is fascinating and it’s interesting to speculate whether it was inside job. Some sources have claimed it, we’ll know by the actions the new leadership takes. If they let the oil majors and American “advisors” in, then the allegations are probably true. Other sources are saying that Acting President Delcy and the new leadership are actually more dedicated Chavistas than Maduro was. Until we see what the Venezuelan government we don’t know which storyline is true.

There’s also talk of taking Greenland and perhaps even Canada or Mexico.

This is all standard late Imperial collapse messiness.

But nothing has changed in the fundamentals. The US is in auto-catabolic collapse and so far there is no sign of the oligarchy losing control, which is the pre-condition for any attempts to change the trajectory. I’ve now seen data indicating China is leading in 89% of key tech fields, up from 80% a couple years ago. US industry is still collapsing. Research funding has been slashed. Final bastions like chips, AI, civil aviation and biotech/pharma are all under assault and will fall like dominoes over the next five to ten years. The US has no ship building capacity to speak of, is behind on drones and missiles (the key weapon systems of modern war) and can’t even make key components in its military chain without Chinese help. Dollar hegemony is no more than five years out from being lost.

None of the trends have changed, and there is zero sign that they will change. Actions against Venezuela will speed up the purchases of Russian and Chinese AA, missiles and drones by other countries to avoid this situation, and while China’s reluctant to send “advisors”, Russia is much less so and once the Ukraine war is over (this year or next) it’ll be happy to do so, with combat proven troops and tech. This is going to make South America more resistant to America and more determined to diversify away, not less.

As I have repeatedly said “Empires die bloody.” The US is no exception. But it is dying and NOTHING has changed which effects that. Imperial power in the modern world is entirely a product of industrial capacity and technological supremacy, with resources and population placing upper limits on what industry can accomplish.

The US is done, this is just the thrashing about of a dying giant. A lot of people will die or be hurt in the process, but, again, nothing of significance has changed.

This site is only viable due to reader donations. If you value it and can, please subscribe or donate.

Maduro Kidnapped

By Ian Welsh

On January 3, 2026

75 Comments

Didn’t expect this. Guess enough of the military wasn’t loyal or competent. Won’t work out well for the US in the longer run, but here we go again. Hell of a precedent to set. If I were Mexico’s President I’d be very worried. Hope she can trust enough of her military.

A lot will depend on if a new leader not approved by the US steps up, ideally a military man. Don’t know enough about Venezuela to have an opinion on this. Decapitation strikes don’t work on real movements (see Ansar-Allah.)

However, more likely a “unity government” will be announced, the US oil majors will be let back in and so on. It’ll be interesting to see if an insurgency springs up or not. If I were China (I’m not, and they tend to be more passive than I think is wise) I’d happily supply any insurgency that does happen.

Anyway, discuss here.

Update: US President #DonaldTrump said in a press conference that the US is going to “run #Venezuela.” Trump added that the #US will run the country until it decides a “safe, proper, and judicious” transition is in place. He said that the US does not want to be involved with “having somebody else get in and we have the same situation that we had for the last long period of years.”

Update 2: Could be that the kidnapping did nothing but replace Maduro with someone more competent. Alternatively Delcy, whom the US has acknowledged as head of state, lead the negotiations to sell out Maduro. We’ll see.

Statement from Vladimir Padrino López, Venezuela’s Minister of Defense and Commander-in-Chief of the Bolivarian National Armed Force (FANB):
—

📄 BOLIVARIAN REPUBLIC OF VENEZUELA
OFFICIAL STATEMENT OF THE MINISTRY OF PEOPLE’S POWER FOR DEFENSE

The Bolivarian National Armed… pic.twitter.com/XhDnVf4pqu

— Drop Site (@DropSiteNews) January 4, 2026

Open Thread

By Ian Welsh

On January 3, 2026

9 Comments

Use to discuss topics unrelated to recent posts.

The Accelerating Nature Of Financialization Collapse

By Ian Welsh

On January 1, 2026

21 Comments

There’s a lot of confusion about the end of the American empire, and the fall of neoliberalism. Many people think the US will just be in “second place” and it’ll be OK.

No.

The problem is the nature of America’s decline. Since 1980 the US economy has been progressively financialized. Profits are all that matters, not what is done to make profits. In properly functioning markets the idea is that products fill a need, on net improve human welfare and lead to more growth of real products.

If a company doesn’t make a profit, that means it isn’t growing the real economy with products which are a net positive. In such a case it goes out of business.

This is approximately how the Chinese economy works. It’s how the US economy worked for much of its history. It’s how the British economy worked up till about 1890 or so.

It’s not how the US economy works.

You could say that the US economy is currently auto-catabolic. The more money that is made, the more the real economy is damaged. You see this most purely in Private Equity. They buy up companies, loot the company, load it up with the debt (including all the debt used to buy the company), then the company goes out of business. This is what happened ToysRUs, it is also, contrary to the current storyline, what happened to Blockbuster. The company was trying to pivot to online, but all profits were drained out by PE owners.

This happened to, literally, tens of of thousands of companies.

The sort of monopoly roll-ups which Matt Stoller so ably covers increase prices without increasing product quality. Health care price increases provide no utility (you can get a CT or MRI scan in China for under $100.) All of this damages the economy. Headline GDP goes up, but the actual strength of the economy decreases. I would estimate that fully half of US GDP is essentially “fake”, driven entirely by increased prices and fake profits. The US economy has been smaller than China’s, in real (not PPP adjusted, but “how much do we produce”) terms for at least ten years.

This process continues till there is no muscle left to consume.

The only possibility of the US avoiding the UK’s fate, despite being a continental power, is for the oligarchs to lose power and for there to be a huge compression of asset and service prices. This process will be extremely painful and is currently politically impossible, due to the control of the duopoly. Both parties are owned by oligarchs, the tech bros are rising and none of them have the least interest in creating a good economy when it’s so much more profitable to loot America.

Real innovation is moving to China and will increasingly do so. They are at least equal in pharma and will soon be ahead in biotech. Their markets prioritize increased production (which westerners complain about as “over-capacity.”) The Chinese government does not want high GDP numbers or high profits, they want increased human welfare and a more powerful state and country. So their markets are organized, well, as actually competitive markets, the most “free” in any major economy.

So Americans who are patting themselves on the back, figuring “well, how bad can it get? We’ll still be number 2” are underestimating how bad the economy is going to get. India is effectively a continental power too, and it punches way below its geographical weight.

This isn’t to say there is no hope for the US, but decline has a long way to go yet because reversing it requires the most powerful people in society to give up massive profits, and many of them, in the process, would lose their fortunes. Meanwhile many ordinary Americans are still doing “OK” if not great, and they don’t want radical (change from the roots) change either.

All of this is not a worse case scenario either, it’s the default—maybe even slightly optimistic. The worst case scenario involves some form of civil war, not like the War between the States, but low grade shit wafare that slowly drives a country into the dirt.

The bottom is not yet close.

This site is only viable due to reader donations. If you value it and can, please subscribe or donate.

2025 Is The Year The US Empire Acknowledged The End of Hegemony

By Ian Welsh

On December 31, 2025

17 Comments

Let’s keep this brief. In 2025 the US:

Gave up trying to win the Ukraine war;
Turned NATO from a vassal protection scheme into a vassal looting scheme;
Slashed scientific spending massively;
Lost a trade war to China;
Doubled down on the AI Bubble, in a race it will lose;
Was humiliated by China’s rare-Earth sanctions, realizing it couldn’t build weapons without China;
Pivoted hard to trying to hold onto Latin America, after almost all Latin American countries had replaced the US with China as their main trade partner;
Went to war with their own university system;
Realized (this is now widespread) that dollar hegemony is almost over;
completely destroyed what remained of their moral soft power to enable a genocide in Palestine, making everyone realize America is run by people who might as well be Nazis;
Was governed by the most corrupt and stupid President of the 20th and 21st centuries; and,
Gave up on solar and renewable energy.

Some of this is sort of admirable. Ukraine can’t be won, so you might as well not pretend it can be and acknowledging the end of dollar hegemony is wise. Pivoting to the Americas won’t work in the medium run, but it’s at least an acknowledgement of actual power realities.

However basically the US now knows that it is weaker than China. China has a larger navy by ship number, and it won’t be long before they have more tonnage (if they wanted to, they could have larger navy by tonnage in two years, they have the capacity.) The Chinese and Russians have more advanced missiles and drones, and far more production capacity. The Chinese are ahead in almost all tech areas with only a few bastions (civil aviation, chips, space launch being the most important ones) remaining and all those bastions are under assault and WILL fall. There is precisely no question that in 10 years, perhaps even five, China will be equal to the West or ahead in every important technology and almost all non-important techs.

What people are not understanding is that while the US may be able to turn Venezuela (MAY) their days of throwing their weight around are almost over. The drone/missile revolution and China’s advances in making them cheap and abundant mean that sitting offshore and freely bombing other nations is a strategy whose best-by date is now in sight.

The US/West had already lost years ago in the most important sense: all the important trends (tech, industrial capacity, military build capacity, shipbuilding) were running against it and there was zero possibility that those trends would change. For over 20 years I have pointed out that US policy and international trends meant the US dollar would lose its reserve and default trade status, now it is becoming common wisdom.

2025 wasn’t the year the US lost, but it was the year when everyone with two brain cells to rub together and even a smidgen of objectivity realized it.

The US is still a great power, and ex-hegemons do not go gracefully into that long night. America will kill and impoverish a lot of foreigners and Americans as its decline accelerates.

But it is all over but the shooting, and 2025 is the year it became impossible to argue otherwise without people laughing in your face.

This site is only viable due to reader donations. If you value it and can, please subscribe or donate.

American Sanctions Are Now Benefiting Countries

By Ian Welsh

On December 30, 2025

22 Comments

The war against Russia was a big bet on sanctions. The Russian military was always stronger than Ukraine, but the West believed that sanctions would destroy the Russian economy, enabling a win and hopefully weakening Russia so much that it could be broke up.

Instead Russia’s economy has performed better since the war than it did before. Sanctions encouraged re-industrialization and Russian and Chinese businesses replaced Western ones.

Venezuela has been under sanctions ever since Chavez launched his Bolivarian revolution. Every year there are more sanctions. For a while, it worked. But…

That’s right, the most sanctioned country in South America has the highest GDP growth. It’s not doing as well as it was a couple years ago, but it’s still growing fastest.

This explains, in part, the desperate attempt to overthrow Maduro and install an American backed government.

The simple truth is that America and Europe just don’t matter much any more:

No one needs the West any more. They’ve got China. Thus the oil blockade, which is a simple act of piracy. Sanctioned ships are only sanctioned by the West, not by the countries that Venezuela is sending oil to like Cuba, China and Iran. This is a last ditch effort to collapse Venezuela’s economy, in a way that failed with Russia. The bet is simple enough: you can’t really mass-seize Russian ships, because Russia is a great power and anyway, increasingly oil is shipped by land. Venezuela has one major weakness left and Trump, led by the nose by Neocons and Cuban exiles is making a last gasp government change effort.

We’ll see if it succeeds. My money is on “no”, though they can cause a lot of damage along the way, and probably hope that seeing the damage, other countries will be dissuaded from outright hostility to America.

My bet is that it doesn’t work: Chinese and Russian anti-ship and and anti-air systems will be sold in vast quantities to developing countries and increasingly America will find itself unable to enforce blockades. It couldn’t even defeat Ansar-Allah, after all.

The twilight of Empire is an ugly time, but this is America’s twilight.

This site is only viable due to reader donations. If you value it and can, please subscribe or donate.

Can You Just Out-Breed Your Domestic Enemies?

By Ian Welsh

On December 29, 2025

25 Comments

There’s a constant trope on the right that the best way to win is to have more kids because eventually you’ll outnumber your enemies?

Seems like it makes sense. It is part of why Christianity won in the Roman Empire: they forbade anal and oral sex and contraceptives (yes, they had clumsy contraceptives back then) and emphasized that sex was for having kids and out-bred the pagans.

But it wouldn’t have worked if the children had preferred the pagan life. Christianity at the time offered a ton of social support, including very practical support like food and housing. Most Romans were poor, and if you were poor you needed the community that Christianity (and some other mystery religions) offered. Christianity offered a better life and a better after-life, for that matter.

Christians today think “we’ll just out-breed them” but it only works if when your kids grow up they don’t go to the big city and discover that there’s a more enjoyable and dignified way to live. Women may realize they don’t want to have multiple children and would like to have sex without necessarily getting pregnant. Ideas of social justice and equality may appeal to both sides, and arguments for atheism and agnosticism start looking mighty convincing when you see how many different religions there are all claiming that they’re the true religion.

The same is true for political ideology. If you’re poor and have no hope for the future maybe socialism looks a lot better than capitalism or the day’s version of MAGA. Maybe communism or anarchism. Or even just standard liberalism with individual rights.

This is what has been happening for well over a century to religion in advanced countries. Fewer and fewer believers, even when the religious breed like rabbits, because secular society or ideologies offer more hope and self-respect. Same with the decline in belief in capitalism. Capitalism says that people earn what they deserve. If you’re not making it are you going to believe you suck and deserve a shitty life or are you going to find an ideology which says “actually, the game is rigged, you aren’t a loser and we can make the world better for people like us.”

I know which one I’d choose.

Breeding is fine, but it only matters if you can hold onto the kids you spawn. And you can only do that if you are seen to offer a better life. This is at the heart of the right wing hatred of universities: kids go to university and realize that a better life is possible if they don’t buy into right wing arguments. They also meet brown people and discover, “hey, they’re just people.”

For a long time, when each generation was better off than the one before it, liberalism basically took the majority of non-liberals and turned them into liberal capitalists. Why wouldn’t it? It was clear that if they bought in they’d have a better life than if they didn’t.

Now liberalism and capitalism are failing. The right is trying to offer an alternative, and a lot of people have gone for it, but it’s also failing to deliver. Watching Trump basically destroy farming communities is instructive. And when it fails and is seen to fail, well, it’s going to be hard to hold on to those kids.

Breed all you want. It’s irrelevant if what you offer isn’t better that the lives possible to people by changing their ideology and loyalty. True victory isn’t having the most descendants, it’s having people act as you would have them act.

This site is only viable due to reader donations. If you value it and can, please subscribe or donate.