Ian Welsh

The horizon is not so far as we can see, but as far as we can imagine

Author: Ian Welsh Page 16 of 422

Treasury Bond Auction Is Extremely Weak

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On May 21, 2025

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Whoa, Nelly!

•U.S. 20Y Yield: Spiked to 5.097%, up +10.7 bps intraday. •10Y Yield: Rose +11.1 bps to 4.592% •30Y Yield: Jumped +10 bps to 5.067%

This caused stocks to trend down and even the dollar. Simply put, the US is adding a lot of debt, reducing revenue by cutting taxes, and there’s wild amounts of uncertainties due to Trump’s tariff and trade policies. Bond traders are worried, Japan is reducing its Treasuries’ holdings, and everyone is looking imploringly at the Federal Reserve.

As a friend quipped, “the economy is perfectly healthy, as long as we keep it on life support.”

Which is to say the likely result is that the Federal Reserve will have to step up and start buying Treasuries again. The last time it did that was during Covid.

“Print more money to bail out elites.”

But here’s the problem. The US really is trouble. Yes, in principle the US can print as much money as it wants, like any sovereign that issues its own currency. But that’s not the issue. The question is, “What does the money being printed produce?”

QE has essentially produced richer elites, more monopolization, a poorer general population (a recent study found 60 percent of Americans cannot afford a “decent” lifestyle), and higher prices. You could also say it has funded a less competitive US that is falling further and further behind in technology.

It’s what you spend money on that matters. All QE has EVER done is make it so that current elites stay in power, keep getting richer, and are rewarded for driving Americans into the ground at very accelerating speeds.

The Fed can’t rescue the US from spending its money to do all the wrong things. That requires legislative and executive action. Those parts of the government, however, are even more fickle and stupid than the Fed, which is like saying that Mount Everest is taller than K2. Technically true, but both are so tall (stupid) that it beggars belief.

If there’s something the US can do wrong right now, it’s doing it wrong, and it if it isn’t, it’s a legacy policy they haven’t gotten around to fucking up yet.

This blog has always been free to read, but it isn’t free to produce. If you’d like to support my writing, I’d appreciate it. You can donate or subscribe by clicking on this link.

The Attempt to Find a Democratic Joe Rogan or Beat the Right Online Will Fail

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On May 20, 2025

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Open your wallets, donors:

At donor retreats and in pitch documents seen by The New York Times, liberal strategists are pushing the party’s rich backers to reopen their wallets for a cavalcade of projects to help Democrats, as the cliché now goes, “find the next Joe Rogan.”

Here’s the thing, Rogan could lean left (not centrist, left). Remember this?

Here’s the deal: There will never been a popular, centrist online presence which is stronger than the right-wing populist one. Centrists don’t do popular. They don’t have the instincts. It’s all about pandering to elite and PMC ideology — think Yglesias, Ezra Klein, and their ilk. They can run numbers, sure, but no one gets super worked up. No one who wasn’t going to vote Democratic no matter what loves them.

Rogan is a populist. He was willing to go left, he’s willing to go right. He’s not going to go Centrist. There will never be a centrist Joe Rogan.

This is a symptom of a larger problem.

Six months after the Democratic Party’s crushing 2024 defeat, the party’s megadonors are being inundated with overtures to spend tens of millions of dollars to develop an army of left-leaning online influencers.

If by “left-leaning” they meant left, this would be theoretically possible, but what they mean is centrist:

Democrats widely believe they must grow more creative in stoking online enthusiasm for their candidates, particularly in less outwardly political forms of media-like sports or lifestyle podcasts. Many now take it as gospel that Mr. Trump’s victory last year came in part because he cultivated an ecosystem of supporters on YouTube, TikTok and podcasts, in addition to the many Trump-friendly hosts on Fox News.

It’s been memory-holed, but there was a time when the left was stronger than the right online — vastly stronger. In the 2000’s, the days of the so-called Netroots or blogosphere, it wasn’t even close. The big names were left-wing, and the biggest right-wingers did numbers that were one-tenth of theirs.

This was widely acknowledged. There were mainstream press articles about the right-wing’s online problems.

Then Obama took power, and the word went out: If you’re a Democratic operative or donor, you should stop funding Netroots, and if you don’t, well, you will be frozen out of work as an operative, and if you’re donor, your interests will not be prioritized.

It was there, I was an insider, and I know. The combination of Google and Facebook systematically driving advertising revenues into the dirt, along with some other issues (basically related to Democratic core voters lack of any actual principles other than, “Our party is always right, the Republicans are always wrong, and the left owes us their votes and has nowhere to go”), Netroots died. It took a few years, but the job was done.

The Netroots’ mantra was, “more and better Democrats.” We fundraised for Democrats, but we also primaried Democrats we considered bad. This was unconscionsable to Democratic power brokers. We were supposed to be entirely an adjunct and not interfere in internal Democratic politics at all. So, they put Netroots down like a diseased dog.

Democrats want a cheering section. They don’t want anyone who will do anything but promote the candidates chosen by insiders.

That’s NOT how a popular online movement works. It isn’t how any of the movements which have been successful on the right worked. They all primaried Republicans they didn’t like and pushed policies they believed in — even if the party didn’t agree.

So donors can throw as much money as they like at the problem, but unless they’re willing to fund the actual left, and to understand that funding doesn’t mean they get complete control, they will fail.

It would be better to encourage already existing, left-wing populist figures and give them some funding, as opposed to trying to astroturf a new online movement.

But then, an already-existing figure might say, “Free Palestine” or “Biden is senile,” and they can’t have that.

No one will really trust an astroturfed “left-wing” figure, and they won’t grow to huge stars.

You can have effective, powerful left-wing online populists, or you can have court eunuchs who always back the party line.

Choose one.

This blog has always been free to read, but it isn’t free to produce. If you’d like to support my writing, I’d appreciate it. You can donate or subscribe by clicking on this link.

America’s Military Power Is a Legacy Asset

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On May 19, 2025

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Chinese and American flags flying together

Since the industrial revolution, military power has been largely a function of three factors:

  1. Technology
  2. Industrial Capacity
  3. Population

As time goes by, population becomes less important (see, rise of drones), but it still matters. Think of it as something like Tech x IndCap x (Pop x .5).

The US has a powerful military, though most of the technology is one or two generations old. The general consensus is that Pakistan’s Chinese jets (themselves last-gen tech) out-performed India’s Western jets.

At this point, China is ahead in about 80 percent of tech fields. China has 31 percent of world industrial capacity, and the US about 16 percent, meaning that China has about twice as much. Further, China owns the entire supply chain for many of its technologies, whereas the US’s supply chain is reliant on China.

Finally, of course, China’s share of world industrial capacity is increasing.

A lot of civilian industry can easily be turned into military tech. This is what made the US “the arsenal of democracy” in World War II.

China has about 230x the shipbuilding capacity of the US.

China produces about 20K civilian drones a day. The US produces about 20K civilian drones a year.

The US and Canada combined produce about 12 million cars a year. China produces about 30 million cars a year.

So in a real war, where civilian industry is retooled for military production, well, China is well ahead. In the case of drones and ships, ludicrously ahead.

The US finds itself in a similar position to Japan on the eve of the Pacific War. Japan had a powerful fleet and air force, but it couldn’t replace equipment losses to match the rate of the US, let alone expand its arsenal. If it isn’t a “short victorious war,” the US loses, unless it goes nuclear, in which case everyone loses.

This imbalance is only going to get worse. China has a ridiculously small army of about two million, with a million paramilitary. When you consider its population of 1.4 billion, well, again, China is similar to the US before WW2; an industrial behemoth with an undersize military, but which can be expected to ramp up — fast.

(These numbers are better if one includes South Korea and Japan, or even the EU, but then one has to add Russia to the Chinese side. And the way the US is acting, it’s less and less clear its allies will support it in a shooting war, especially if it starts the war. Never thought I’d say that about Japan, but Trump has really shit the bed with his insane trade war.)

All of this is going to get worse and worse for the US. China is increasing its tech and industrial lead, while the US is systematically de-funding its research sector even as erratic economic policy makes long-term investment in new industrial capacity difficult. China’s civilian airline industry is taking off, its car industry is expanding as the West’s collapse, and it’s the only real player in the drone space.

China doesn’t want a war for the simple reason that the longer they put one off, the easier it will be if it happens — and the less likely it will be to happen, because Americans will be unable to sustain the delusion that they have any chance of winning said war.

The American era is over. It’s even likely that the US will lose control of South America, which it has had since the late 19th century. (Yes, there were theoretically independent nations in South America. Theoretically.) It will be pushed back to its North American stronghold, where it even seems to be attempting to lose effective control of Mexico and Canada, which is an entirely self-inflicted wound, as both nations wanted to stay under the US wing.

Just as the sun set on the British Empire, today it is at the horizon for America, and the long European supremacy is nearly over. The world returns to its normal state, where the Middle Kingdom is the most important and prosperous country in the world.

 

This blog has always been free to read, but it isn’t free to produce. If you’d like to support my writing, I’d appreciate it. You can donate or subscribe by clicking on this link.

Amidst Everything Else, the Palestinian Genocide Is Picking Up Steam

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On May 16, 2025

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A healthy person can survive forty to sixty days without food, depending on how fat they were to begin with. Women last longer than men (women are better at all extreme endurance feats I am aware of).

It’s been about two months since Israel cut off all food and water to Gaza. There were storehouses and some food, and it took about 30-40 days to exhaust the stores, but even before that, there wasn’t enough.

And even before this cut-off there wasn’t enough. There was a brief period after Trump took power with supplies moving in large amounts, but since the start of the crisis, Israel has been choking off food, medicine, and everything else, and Israeli citizens have stopped and hijacked aid trucks.

So, there aren’t any fat people in Gaza, except for some Zionist genociders who cosplay as soldiers. Most people in Gaza haven’t had enough food for well over a year.

Palestinians are going to start dying in massive numbers right about now, and the deaths will accelerate.

This is the first live-streamed genocide. Everyone knows it’s happening, and no one except the Ansar-Allah is doing shit, though credit to Hezbollah for trying until Mossad ripped them apart. (I do maintain Hezbollah’s strategy was awful, but that’s water under the bridge. At least they tried.)

I include Iran in this general indictment. It has enough missiles to really hurt Israel and proved that it could get thru the “Iron” Dome.

But, again, they’ve done more than pretty much every other country in the world.

I will note, for the record, though that it’s unlikely to matter much, that for the rest of my life I will judge people based on whether they were against the Palestinian genocide at the time. In a few years almost everyone will pretend they were against it, but we have receipts. And even if you are good to puppies and children, give lots of money to charities and are perfectly aligned with my politics on everything else, I will regard you as evil and a piece of human garbage, who could only improve the world by committing suicide, if you were OK with this.

This genocide could be stopped tomorrow by the US simply halting all shipments and aid to Israel. Even Europe, were it to act similarly, might be able to stop it.

But no one with the power to do anything decisive, is. Which means they’re all monsters.

And if you are depraved enough to think “who cares, it doesn’t affect me?”, let me assure you that on top of being human filth, you are also stupid and a fool. If they’ll do it to Palestinians, they’d do it to you and yours if they thought it was in their interest and they could get away with it.

Which, so far, they have every reason to believe they could.

Certain actions, like genocide, rape, torture and deliberate child murder have to be off the table entirely for the protection of everyone. You never want to normalize them, even if you are an evil piece of shit, because once something becomes routine, who knows who is next on the table?

Welcome to Hell.

This blog has always been free to read, but it isn’t free to produce. If you’d like to support my writing, I’d appreciate it. You can donate or subscribe by clicking on this link.

The Unifying Goal of Right & Center Elites

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On May 15, 2025

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Getting elites attention

What the right wants from its followers is for them to be riven by hatred of any difference, thus making them easy to manipulate and willing to sell out their economic values in exchange for seeing brown people beaten, and women and trans people losing control over their own bodies.

What neoliberals want is for their followers to be convinced that each group, even each micro group, is on its own, unable to understand each other and thus that solidarity is impossible and all one can hope for is that some member of the identity group is allowed to join the elite, while most of all groups remain in poverty.

They’re very similar, really. In both cases hatred of other groups is inculcated as the core value, as a way of making manipulation easy and avoiding having to actually deal with broad issues of well being.

Both of these are variations on “divide and conquer”. It costs a lot less to give a few people something than to give many people something. “Want some women and minorities in power? Sure. Costs us almost nothing.”

“Want women to be forced to bear rape children and die in pregnancy due to lack of necessary abortions? Sure, costs us nothing. Our women can still get abortions.

“Want trans people excluded and denied health care? Sure, they’re a tiny part of the population and rich trans people will be fine.”

On the other hand giving everyone healthcare would cut a lot of profits. Giving everyone a liveable wage or assistance to those who can’t work or find jobs: that would cost a lot of profits.

“You can have anything you want, as long as it doesn’t make elites poorer.”

On that the right and center are unified.

This blog has always been free to read, but it isn’t free to produce. If you’d like to support my writing, I’d appreciate it. You can donate or subscribe by clicking on this link.

 

Capitalists Only Respond to Threats

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On May 14, 2025

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Stumbled on this chart recently:

It kind of tells its own story.

It’s worth reading The Communist Manifesto. People have weird ideas about it, but a lot of it is really unexceptionable. For example, Marx and Engels demanded pensions for old folks.

Capitalists looked at this, and said, “Oh, we can do this if the alternative is worse,” and introduced them. Someone as hard-headed as Bismarck responded this way.

The threat of a credible enemy ideology which treats ordinary people better than capitalists do forces capitalists to change. For a long time, we haven’t had that, but the single party “Marxist-but-with-capitalism” CCP offers another. And yes, they do (overall), treat their workers better, as well as being better at capitalism than capitalists. No one is as obsessed with how markets actually work as Marxist economists.

Let’s look at another of my favorite charts:

Oh hey! Having powerful organizations taking the part of workers matters.

Something happened right after Reagan took power:

Strikes involving more than 1,000 workers

Strikes involving more than 1,000 workers

Then there’s this:

(The numbers have gone down since then, but they’re still vastly high, and far, far higher than China.

Break the unions and lock up the people who won’t obey bullshit (a.k.a. drug) laws.

Class war is real, and constantly ongoing, and elites have won that war.

Power and fear is all that capitalists ever respond to.

Always remember that.

This blog has always been free to read, but it isn’t free to produce. If you’d like to support my writing, I’d appreciate it. You can donate or subscribe by clicking on this link.

The Horror of School

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On May 13, 2025

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Back during the pandemic, two things happened with students. Overall, they committed more suicides, BUT when schools were closed, suicide rates went down. (I predicted the latter at the time.)

Then there’s this lovely chart:

Well, well, well. Seems forcing people to do what they don’t want to do, in what is usually a socially oppressive environment, is bad for them.

There are, of course, those who thrive in school, and love it — usually the socially dominant kids. But for a lot of kids, school is Hell.

I think this has a lot to do with alignment of goals. I wrote recently about the epidemic of AI cheating and how to avoid it, but I think the smartest commentary I’ve seen on AI cheating, and cheating in general, is this one:

Has anyone stopped to ask WHY students cheat? Would a buddhist monk “cheat” at meditation? Would an artist “cheat” at painting? No. When process and outcomes are aligned, there’s no incentive to cheat. So what’s happening differently at colleges?

Back in the stone age, I took an introductory sociology class. The professor asked the students who were intending to be teachers to put up their hands. A forest. She told them to keep their hands up, and asked everyone who was planning on social work to put up their hands.

Out of a class of about a hundred and fifty, only three people’s hands weren’t up.

147 students weren’t taking sociology because they were interested in it, but because it was a way-station on the way to a goal.

The problem with “higher” education is that good jobs are locked by the requirement for degrees. The vast majority of students aren’t in university because they want to learn, they’re there because they need the credential. They don’t see the applicability of what they’re learning to their future jobs, in most cases correctly, so they just want to get through the courses with the least effort possible while getting the necessary grades.

Of course, they cheat. They’re being forced to waste three or four years and huge amounts of money on a chance of getting past the gatekeepers.

I used to amuse myself by talking to graduates. I’d ask them what their major was, then discuss it with them. Nine times out of ten, I knew more about the subject than they did, even though I’d never taken a single course in the topic at hand. They’d memorized enough to pass the tests, then immediately forgot it, because it had no relevance to their goals or their life.

The only case for requiring a bachelors degree, in a job that doesn’t use the knowledge taught by that course, is that it screens out people who won’t put up with bullshit and who won’t do what their told when it doesn’t align with their goals. A B.A. certifies to potential employers that, “this person will do what they’re told and put up with your bullshit. They barely need to be coerced, they do what is expected of them.”

Problems is, it also certifies that, “they will put in as little effort in the job as they can, unless it serves them to do otherwise.”

If it were up to me, I’d make it illegal to require unrelated educational credentials. Want to hire an engineer (an actual engineer, not a programmer)? Fine, ask for a degree. But if it’s just some unrelated job, no.

But I’d go even further, I’d mandate exams to test for job knowledge. (In person, supervised) similar to how a lot of companies test programmers. “Can you actually make a small program?”

Testing for jobs used to be pretty standard. Almost all civil service jobs were gated behind exams and so were a lot of private sector ones.

Then see how they perform for a few months.

Forcing people to do what they don’t want to do is sometimes necessary, to be sure. But it has to make sense. There’s plenty of evidence that good home-schooling teaches students skills faster than classroom teaching (and no, not all  home schooling is right wing nutjobs, where I grew up it was hippies.) As for socialization, there are other ways to socialize children, most of which are probably more pleasant and less harmful than the often hellish social circumstances in schools, especially high schools.

As for spending time with adults, well, that’s what children did for most of history. They weren’t stuck just with kids for most of the day, then just their parents. After all, you’re a kid for a lot less longer than you’re an adult, and it’s the adult world you need to know how to navigate.

I’m not saying mass schooling has or had no benefits. It obviously does and did. But can we find a better way to teach children?

This blog has always been free to read, but it isn’t free to produce. If you’d like to support my writing, I’d appreciate it. You can donate or subscribe by clicking on this link.

“Art of the Cave”: Trump Walks Back China Tariffs For 90 Days

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On May 12, 2025

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Well, maybe. Who the hell knows what he’ll do. Anyway, tariffs are back to 30% on China and 10% on America.

This is exactly what China demanded, for tariffs to go back to what they were before April 2nd.

There will still be a two month trade burp. Ships weren’t leaving China for the US at all, literally zero. Lot of freight companies are about to make a mint, though. So expect some shortages, but nothing worse than Covid, and hopefully lasting less time.

The fundamental problem remains, however, which is that there’s no certainty around any of this, so business people can’t make long term plans, including plans to build or relocate manufacturing. Trump and the US can’t be trusted to stay steady on policy, so avoiding making big plans involving the US makes sense.

The Great Power picture is clearer, however. The US tried to impose its will on China and failed. China wouldn’t negotiate till its pre-conditions were met. The world has two great powers, with the EU bidding to become the third (I think they’ll fail, but that’s what the rearmament is about.)

And, in economic terms, China is by far the pre-eminent great power. It isn’t even close. The era of American hegemony is officially over. The US tried to impose its will on the world and failed.

This blog has always been free to read, but it isn’t free to produce. If you’d like to support my writing, I’d appreciate it. You can donate or subscribe by clicking on this link.

 

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