Technological ‘Breakthroughs’, Ponzi Schemes, and ‘Green’ Energy
A collection of my recent comments on posts/articles that have been shared with me via FB groups/pages. I share these to provide further ‘insight’ into where I am coming from in my understanding/learning but also to share the differing opinions/beliefs that exist (see the last/third conversation).
“On January 19, Washington-based startup Radian Aerospace came out of stealth mode, announcing that it had secured $27.5 million in funding to develop the Radian One, a first-of-its-kind space plane that flies into orbit after taking off horizontally from the ground.”
CM’s introduction: I doubt, it’ll ever be developed.
My comment: Almost all such projects, breakthroughs, magical solutions, etc. are never developed or become a literal money pit. This is one of the ways ‘hope’ is kept alive, but also how many fund their careers. Near-limitless cheap and clean fusion energy is one such animal. Always just another handful of years away. Keep funnelling funds to the industry/research teams and we can achieve it…nothing is impossible for humanity if we put our collective minds to it.
January 30, 2023
Some back and forth dialogue between SC and me in response to my last Contemplation via Degrowth FB group:
SC: The high immigration growthist policies of Canada and Australia amounts to a continuation of colonization. It seems indigenous people are so caught up in the rhetoric of diversity that they don’t call it out as such. ??
Me: That’s true. I do believe, however, that the primary purpose of such immigration policies is not for the virtue-signalling reasons provided to the masses by the government but to keep the Ponzi that is the economic system sputtering along for a few more quarters/years. With domestic populations not reproducing at a fast enough rate to keep an economy expanding, so-called ‘advanced’ economies need to steal ‘consumers’ from other countries. Much tougher for the ruling caste to extract their profits from the ‘national treasury’ when an economy is contracting.
Me: I would argue that the fears around a demographic cliff are mostly held by and perpetuated by economists that know (but cannot divulge openly) that our monetary/financial/economic systems are little more than a complex and very fragile Ponzi scheme (that they have helped to create and inflate). In fact, the truth of the matter is probably closer that everyone knows these are little more than Ponzi schemes but given we are all caught up in them and completely dependent upon them we all look the other way…
SC: Yeah, I’m not so sure there are so many aware people… mixed feelings if it’s true ay…
A rather contentious back and forth (with several others involved as well that I have not included) with one individual on the Peak Oil FB group we are all members of. The comments are in response to an announcement by AZ that he is interviewing Geological Survey of Finland geologist Simon Michaux and seeking questions to ask:
SP: Perhaps ask him why his assumptions on the amount of infrastructure required for energy transition is so radically different than other professional energy system modelers (who have actually had their work peer reviewed). Specifically, he assumes 150X the level of stationary battery storage requirements of others. This error then drives his other (now spectacularly incorrect) conclusions about the levels of resources required. https://twitter.com/aukehoe…/status/1594084375972712448…
Me: Auke Hoekstra’s career depends almost entirely upon the narrative he is peddling. All his income appears to come from the idea that investment in renewables is well worth it. Research grants (as a university researcher at Eindhoven University of Technology). Capital investments (as program director of Neon Research and Zenmo.com). He is highly incentivized to persuade others that investment in renewables (and his research) is worthwhile; and that critics of this are wrong. Not sure I see such bias in Simon Michaux’s work.
SP: it’s not just Auke. He just compiled the most articulate single response I have seen. It’s pretty much every single professional energy systems designer. The utilities, the capital, the whole space. Not one single professional thinks multiple days of battery storage are necessary. Let alone weeks. But then along comes Simon with his PowerPoint, and a bunch of media articles start popping up about how energy transition is not possible because we can’t build enough batteries, based on Simon’s bad forecast. At best, it wastes everybody’s time debunking his nonsense. More likely it adds enough fear uncertainty and doubt that we lean on fossil a while longer, with all the associated ecological impacts. He isn’t helping.
Me: What I find ‘interesting’, given you raise the issue of ecological impacts, is how often (always?) the ecological destruction that accompanies ‘renewables’ is left out of the equation; especially given its destruction has led to extreme biodiversity loss, probably our more and most pressing negative impact of our ecological overshoot. Those who cheerlead a shift from fossil fuels deny/ignore/rationalise away those impacts from the huge amount of fossil fuels that are still required (and may be in perpetuity) to produce alternatives and all the mining for the mineral resources to make them functional. Rare (in fact, mostly nonexistent) is the recognition by renewable cheerleaders (most who claim to be supporting it for its positive environmental/ecological aspects) that they too would destroy our natural world — particularly given how much destruction would be required to even replace a fraction of what fossil fuels currently provide.
SP: the “ecological destruction” from (most responsible) renewables (meaning not palm oil, gen 1 biofuels, etc) is minuscule compared to the fossil sources they are replacing. These impacts are not ignored. They are just a whole lot less worse. The ugly trend of the last year is that when new cleaner tech shows up, all the sudden the hard right “come and take it” types that will not stop burning oil for any reason, are suddenly environmentalists that give a sit about child labor in the Congo. Over just that one specific thing. It’s a delaying tactic, and somebody is paying for a campaign to signal boost that narrative over the last few months.
Me: As Upton Sinclair has been credited with stating: “It is difficult to get a man to understand something, when his salary depends upon his not understanding it!” You seem to have (conveniently?) overlooked the dependency of non-renewable, renewable energy-harvesting technologies upon fossil fuels; so, if your argument is based upon ‘renewables’ being less destructive then fossil fuels, there is a huge gap in your logic…and you are simply rationalising away the environmental/ecological destruction that accompanies complex technologies.
SP: let’s make it crayon-level simple: I assert that renewables are capable of making more renewables, and enough net energy in top of it to keep something resembling civilization running. Others on here assert that because the systems are currently running in fossil, when they switch to renewables they will somehow cease to operate, and therefore transition to renewables is impossible. I find this assertion absurd on its face. We have and will go around in circles in this until so much of the system is transitioned that folks like Eric have to find a new asteroid or something else to profess the imminent collapse of civilization over. All of this is a distraction from the OP, which is about Simon’s work. I pointed out an error, and so far the only refutation of that has been character attacks on me or the authors I cite. Not anything to do with the actual substance of the argument.
Me: Having renewables capable of making more renewables is an assertion that may be true on a small-scale level but there is no proof in the pudding that this can be done at a scale required to support much of anything, and certainly not what most would consider ‘civilisation’. For the sake of argument, let’s assume this is possible. This does nothing to address the continued ecological destruction that would result from it. Nothing. The mining. The processing of materials. The transportation. The construction. The after-life disposal/reclamation. All are destructive and will simply compound negatively the already fragile situation we have created over the past couple of centuries of unfettered growth.
SP: really? Because we extract many orders of magnitude more fossil fuels (which cannot be recycled at end of life) than we do the minerals required for energy transition. The amount of mining required will be vastly reduced. You could counteract all new mineral requirements for energy transition by reducing the amount of land used for cow pasture by 1%.
Me: As for pointing out that those who tend to push for ‘renewables’ tend to have a vested interest (almost always economic in nature) in that narrative is not a character attack. It is a reminder that ‘objectivity’ is rare, if even at all possible, when attempting to support one’s beliefs…this is true for all of us. Now ramp up ‘renewable’ resources to ‘replace’ fossil fuels and take a different look at the chart you shared. I am not arguing in favour of fossil fuels. I am arguing both are destructive and we cannot continue to do anywhere close to the damage we are already doing. Pushing for renewables to replace fossil fuels is attempting to sustain the unsustainable while continuing to destroy the planet.
And finally, let’s not lose sight of the inconvenient fact that almost every promise of decarbonising/cleaning up/electrifying/net zeroing the industrial processes needed for ‘renewables’ are not based upon present, at-scale realities but upon accounting gimmicks, laboratory or small-scale prototypes, and as-yet-to-be-hatched chickens. There is nothing presently in place that comes remotely close to the promised land of “…in the future…” (and by the way, please invest in our research…)
Me: We all believe what we want to believe…including magical solutions that will allow humanity to continue pursuing our utopian dreams on a finite planet. I think we will leave it at agreeing to disagree. In a world of quickly declining surplus energy, continuing population growth (many with aspirations to achieve higher economic ‘prosperity’), significant diminishing returns on increasing resource scarcity, a complex yet gargantuan Ponzi-type economic system predicated upon hundreds of trillions of dollars of unplayable debt (quadrillions if we include derivatives and shadow banking), escalating geopolitical tensions, building totalitarianism, overburdened planetary sinks, massive biodiversity loss, increasing frequency and power of extreme weather events, etc., etc., I have a very, very, very difficult time having faith in all the as-yet-to-be-hatched techno-promises (especially at scale) particularly since they tend to be coming from those who profit from the continuation of the narrative that all problems are solvable — as long as we believe and divert lots of money/resources to them…
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Expediting ‘Collapse’: Financialisation of Our Economic System
A very short contemplation that deviates from the ‘series’ I’ve been writing on several psychological mechanisms that impact our cognitions regarding overshoot and collapse. This is a brief comment (with a slight edit) on an article by The Honest Sorcerer whose writing I discovered a few months ago and have found to be quite excellent (probably because I get positive, confirmatory ‘feedback’ in the sense that their philosophy/analysis aligns with a lot of my own thinking; in fact, some commenter has actually accused me of being The Honest Sorcerer) — I highly recommend reading their work.
Apart from the inevitability of diminishing returns on investments in resource extraction (particularly energy-related ones) that you highlight brilliantly, I have to wonder about the role of some other phenomena in our complex global industrial civilisation that are leading us quickly towards ‘collapse’ (to say nothing really about our fundamental predicament of ecological overshoot).
In particular, I look at the extreme financialisation of our economies — especially via interest-bearing credit/debt expansion — that has led to pulling resources from the future that necessitates the pursuit of the perpetual growth chalice (and, as you point out, this is a pointless endeavour given the harsh reality of physical limits on a finite planet).
The financial industry (central, private, and shadow banks particularly), along with the complicity of our political class, has allowed/cheerlead the explosion of debt instruments that I would contend does not only allow us to avoid reality for some time but also contributes to price inflation as we have gargantuan amounts of ‘wealth’ chasing decreasing resources.
The real kicker I agree is our bumping into physical limits that not just dampen our pursuit of growth — that is required to keep the gargantuan Ponzi scheme that is our economy from expanding — but very likely is the pin that has burst the biggest economic bubble in our relatively short history on this planet. Ponzi schemes have a tendency to collapse when they can no longer expand and physical limits on a finite planet ensure the one we’ve created to ‘sustain’ our global economy is on its way to implosion.
Of course, overshooting limits (be they biological in nature or economic) can carry on for some time before the actual ‘pain’ is felt — the human penchant to deny reality helps here in the extreme. This is perhaps why Black Swan events are the ones that create the greatest impact on us; in our denial (and our inability to assess risk very well), we fail to prepare for possibilities that increase our anxiety — like collapse. Better to live in a fantasy world of human ingenuity and technology always being there to rescue us than accept that we are simply walking, talking apes that don’t understand complex systems and how our tinkering with them always, eventually backfires.
Precious metals expert and financial writer Bill Holter says the recent underreported announcement by the UBS CEO Sergio Ermotti in Switzerland that his bank might need a “rescue” is yet another sign on the short road to the end of the global Ponzi scheme backed by the US dollar reserve currency. Holter points out, “You’ve got a sick bank (Credit Suisse) that is being bailed out by another bank (UBS) that may turn out to be sick. My question is who is going to bail out these central banks? You have got the Fed with a $9 trillion balance sheet. The last time, the Fed went from $900 billion to $9 trillion. Can the Fed now go from $9 trillion to $90 trillion? Who is going to bail out the Fed? Who is going to bail out the US Treasury? Who is going to bail out the Bank of England, the ECB or the Bank of Japan? These central banks have completely blown up their balance sheet and have no ability to save anything. My question is who is going to save them?”
Can’t they cut interest rates again like they did in 2009? Holter says, “If they cut interest rates from here, you would see the dollar absolutely crash. The only reason the dollar has not crashed is interest rates have basically gone from 0% to 5%. They have done that in a year and a half which is the fastest increase in interest rates in all of history.”
So, rate cuts will devalue the dollar. Can you pay trillions of dollars borrowed in Treasury Bond back in confetti dollars? Holter says, “Yes, you absolutely can pay back your debt in confetti. It’s been done many, many times before as currencies get lost…
It won’t be long before governments around the world, including the one in Washington, self-destruct.
Strong words, but anything less would be naïve.
As economist Herbert Stein once said, “If something cannot go on forever, it has a tendency to stop.” Case in point: fiat money political regimes. Interventionist economies of the West are in a fatal downward spiral, comparable to that of the Roman Empire in the second century, burdened with unsustainable debt and the antiprosperity policies of governments, especially the Green New Deal.
In the global Ponzi scheme, thin air and deceit substitute for sound money. As hedge-fund manager Mitch Feierstein wrote in Planet Ponzi, “You don’t solve a Ponzi scheme; you end it.” Charles Ponzi and Bernie Madoff
made some of their investors a whole lot poorer, but the world didn’t come crashing down as a result.
For that—for a Ponzi scheme that would threaten to bankrupt capitalism across the entire Western world—you need people much smarter than Ponzi or Madoff. You need time, you need energy, you need motivation. In a word, you need Wall Street.
But Wall Street alone doesn’t have the strength to deliver a truly cataclysmic outcome. If your ambition is to create havoc on the largest possible scale, you need access to a balance sheet running into the tens of trillions. You need power. You need prestige. You need a remarkable willingness to deceive. In a word, you need Washington.
As Gary North wrote in a brief review of Feierstein’s book, “The central banks have colluded with the national governments in order to fund huge increases of national debt, beyond what can ever be paid off. In other words, [Feierstein] has described government promises as part of a gigantic international Ponzi scheme.”
The idea that the world’s central banks can inflate the biggest financial bubble in human history — appropriately called the everything bubble — and then deflate it gently into a soft landing is mathematically and philosophically impossible. So the question is not if but when we get a bust that’s commensurate with the boom.
Based on the following three indicators, that bust is imminent.
Massively inverted yield curve When short-term interest rates rise above long-term rates, a slowdown usually follows. That’s because traditional banks (though not necessarily the monstrous hedge funds that the biggest banks have evolved into) make most of their money by borrowing short and lending long. In normal times, long-term rates are higher than short-term, reflecting the higher risk of lending into the distant future, so the spread between a bank’s borrowing and lending rates produces a nice spread, which translates into a decent profit.
Invert the yield curve by pushing short-term rates above long-term rates, and this business model breaks down. Banks stop making suddenly-unprofitable loans, their customers have less money to spend and invest, and the economy shrinks.
Note two things on the following chart, which depicts the spread between 10-year and 2-year Treasury bond yields. First, when this spread went slightly negative (i.e., 2-year rates higher than 10-year) in 2000 and 2007, recession followed within a year or so. Second, today’s yield curve is a lot more than slightly negative. It is, in fact, one for the record books, implying that the credit markets expect a dramatic slowdown.
Shrinking money supply A Ponzi scheme needs ever-greater amounts of money flowing in to avoid collapse. Today’s global economy is a classic example of a Ponzi scheme. Therefore, it needs an increasing money supply to function.
In Part one of this series, Our Currency The World’s Problem, we discuss the vital role the U.S. dollar plays in the global economy. With an understanding of the dollar’s role as the world’s reserve currency, it’s time to discuss how the Federal Reserve’s monetary policy machinations influence the dollar and, therefore, the global economy and financial markets.
Given the Fed’s recent extreme monetary policy actions, which haven’t been seen in over 40 years, it is more important now than ever to appreciate the potential global consequences of the Fed’s stern fight against inflation.
Triffin’s Paradox
In Part 1, we highlight the following two lines, which help describe Triffin’s paradox.
“To supply the world with dollars, the United States must consistently run a trade deficit. Running persistent deficits, the United States would become a debtor nation.”
“Simply the growing divergence between debt and the ability to pay for it, GDP, is unsustainable.”
Increasingly borrowing without the means to pay it off is unsustainable. The terms zombie company or Ponzi Scheme come to mind when considering such a system. That said, because the printer of the currency and taxer of its citizens is in charge, we can only ask how long the status quo can continue.
The answer is partially up to the Fed. The Fed can use QE and low-interest rates to delay the inevitable. As we now see, the problem is that those tools are detrimental when there is high inflation. Fighting inflation requires higher interest rates and QT, both of which are problematic for high debt levels.
Financial Tremors
The Bank of England is bailing out U.K. pension funds. The Bank of Japan uses excessive monetary policy to protect its currency and cap interest rates…
Larry also lays out 4 key catalysts for higher gold, silver and bitcoin prices.
Friend of Fringe Finance Lawrence Lepard released his most recent investor letter a few days ago with his updated take on the seismic changes occurring in monetary policy globally as a result of the Russia/Ukraine conflict.
He takes us through history as to how this landscape has changed in the past, and what could be coming in years ahead.
Larry had joined me for several interviews last year and I believe him to truly be one of the muted voices that the investing community would be better off for considering. He’s the type of voice that gets little coverage in the mainstream media, which, in my opinion, makes him someone worth listening to twice as closely.
Lawrence Lepard (Photo: Kitco)
Larry was kind enough to allow me to share his most recent thoughts. Part 2 is below and Part 1 can be found at this link.
In Part 2, he picks up around 1980 and discusses current problems the Fed has.
1980-Present Gold Market
In the chart below, you can see the effect that Paul Volcker’s policies had on the dollar price of gold. By pushing interest rates up to 20%, he managed to cool inflation and ultimately stop it. This brought the gold price back to the $260 to $400 range where it lived for quite some time.
The 1980’s and 1990s were marked by a period of dis-inflation and ultimately deflation given technological innovations and productivity gains from Microsoft, Intel and the like in the 1980s, and then the Internet in the 1990s…
…click on the above link to read the rest of the article…
Putin’s hubris, yes-men for generals, lack of fighting conviction among the men, poor logistics and strong Ukrainian leadership and determination have combined to turn the Russian invasion of Ukraine into a military quagmire.
Meanwhile, the West has upped the stakes in a financial war. The underlying assumption is that the Russian economy is weak and those of the Western allies are stronger. A few key metrics shows this is incorrect. The underlying resilience of the Russian economy and its financial system is not generally understood, and instead EU sanctions could end up undermining the whole euro system and the euro itself.
This article looks at how errors on the battlefield are likely to bring the financial and economic war between the West and Russia out into the open. By suspending access to them, the West has made the mistake of proving to Russia (and all other national central banks) the ultimate uselessness of currency reserves and the benefits of gold. As well as leading to the likely collapse of the entire euro system, this article explains how this financial war could end up with a de facto gold standard for the rouble and call an end for the entire fiat currency Ponzi scheme.
The destruction of the global fiat Ponzi scheme is a step closer
Being increasingly debased, western currencies serve to conceal deteriorating economic conditions, particularly in the US, EU, UK, and Japan. In China, less so perhaps. But China faces an old-fashioned property crisis which is sure to lead to further currency expansion and therefore, debasement of the renminbi. In this article about the state of the financial war between the US, UK and EU on one side, collectively the West, and Russia on the other, we focus on how the invasion of Ukraine is evolving into open financial warfare.
…click on the above link to read the rest of the article…
Ponzi schemes keep going until the perpetrator is stopped from the outside. They never stop by of their own volition. Bernie Madoff kept going until it all blew up.
In the year 2000 the Nasdaq composite exceeded a P/E of 200 before collapsing 78% by October 2002. The more successful a Ponzi the more egregious the bubble and resultant pain. The granddaddy of Ponzi — far greater than anything we’ve seen before — is our monetary system.
Let’s consider what money is. It is a technology that allows us to produce and consume not just in the present but across time.
It is, for this reason, that it needs to provide both a medium of exchange as well as a store of value. If for example a transaction needs to be made over a crop cycle then the value of the money needs to remain sufficiently stable over that time frame to allow the participants to make an exchange and not come out underwater. This benefits neither party to the transaction because, while in the short term party A may get an excellent deal from party B, if the deal is so “excellent” as to bankrupt party B, then no future commerce will be done and overall production declines causing less supply and a fall in the overall standard of living.
The money needs to be useful to both parties. In prisons they use cigarettes. Even if you don’t smoke enough inmates do and the cigarettes don’t change (consistency) and so they form a money.
Of course, over time we’ve used all sorts of things used as money: gold, silver, copper, even slaves. At primary school I used to use marbles and Garbage Pail Kids (ah, those were the days).
…click on the above link to read the rest of the article…
There has been a litany of bad news recently, including the U.S. August humiliation in Afghanistan, China’s aggressive actions against Taiwan and increased tensions with Iran, North Korea and Russia.
It will take the U.S. years, possibly decades, to recover from the debacle of August 2021 and the collapse of American prestige. All of these geopolitical events combine to undermine confidence in U.S. power.
When that happens, a loss of confidence in the U.S. dollar is not far behind.
And, perhaps most importantly of all recent bad news, is a market meltdown and slowing growth in China.
Greatest Ponzi Ever
I’ve long advised my readers that the Chinese wealth management product (WMP) system is the greatest Ponzi in the history of the world. Retail investors are led to believe that WMPs are like bank deposits and are backed by the bank that sells them. They’re not.
They’re actually unsecured units in blind pools that can be invested in anything the pool manager wants.
Most WMP funds have been invested in the real estate sector. This has led to asset bubbles in real estate (at best) and wasted developments that cannot cover their costs (at worst). When investors wanted their money back, the sponsor would simply sell more WMPs and use the money to pay back the redeeming investors.
That’s what gave the product its Ponzi characteristic.
The total amount invested in WMPs is now in the trillions of dollars used to finance thousands of projects sponsored by hundreds of major developers. Chinese investors are all-in with WMPs.
Now the entire edifice is collapsing as I predicted it would.
The largest property developer in China, Evergrande, is quickly headed for bankruptcy. That’s a multibillion-dollar fiasco on its own. Evergrande losses will arise in WMPs, corporate debt, unpaid contractor bills, equity markets and unfinished housing projects.
…click on the above link to read the rest of the article…
The U.S. imported a record amount of gold bullion in April during the global contagion and shutdown of many economies. The United States imported more gold in April than it did during all of last year. A lot of the gold imported into the U.S. was due to delivery issues, as many of the large gold refineries were shut down.
While the huge surge in U.S. gold bullion imports during April was mainly due to supply disruptions, it’s an IMPORTANT SIGNAL that all is not well in the Global Financial System. The panic to get more gold to the U.S. exchanges suggests that there is way too much paper gold leverage in the system.
The highly leveraged gold trading system has worked fine for decades due to an important factor not considered by most in the precious metals community… and that’s rising global oil production. Let me explain. World GDP growth is tied to global oil production growth… PERIOD. While a few other analysts and I have made this point, Jean-Marc Jancovici explained this to a large group of the OECD.
Total world oil consumption on a three-year average corresponding closely to total world GDP per capita on a three-year average. While investors may deny this relationship, do so at your peril.
Because the world has been able to add 1-2% of new global oil production on average each year, except for the down-turns, the highly leveraged Financial Ponzi Scheme can continue to grow and expand. However, when global oil production stops increasing on an annual basis, then global GDP growth is DEAD for good. And, I mean it.
…click on the above link to read the rest of the article…
The cognitive dissonance required to ignore the widening gap between the real economy and the fraud’s basic machinery–speculation funded by “money” conjured out of thin air–has reached a level of denial that can only be termed psychotic.
When scams start unraveling, the scammers become increasingly frantic to maintain the illusion of legitimacy and the delusion of guaranteed gains that are the lifeblood of every scam. One sure sign that the flim-flam is about to collapse is the manic rise of FOMO, fear of missing out, as the scammers jam the Ponzi scheme’s stellar returns to new extremes.What greedy human can resist guaranteed gains, especially of the enviously grandiose variety?
The greatest scam of the past century is unraveling before our eyes. I’m calling it finance capitalism as a general descriptor of the dominant form of what’s called “capitalism” because calling it what it actually is–a fraud that’s destroyed the foundations of our economy and society–is, well, a much more difficult sell than “capitalism,” which still has some faint echoes of the open markets, etc. that characterized traditional capitalism, which I call naive capitalism because it is incapable of differentiating between the parasitic, predatory finance version cloaking itself as “capitalism” and actual capitalism, in which capital is put at risk, markets are transparent, etc.There are many labels for the distorted, corrupted “capitalism” that dominates our economy and society: I’ve long used state-cartel capitalism, others prefer monopoly capitalism or crony capitalism.
I now favor finance capitalism because the heart of the fraud is finance: printing “money” out of thin air without creating any value or any goods and services. If you can’t print “money,” then borrow it into existence–that’s just as profitable a fraud as printing it.
…click on the above link to read the rest of the article…
You understand, there will be no meaningful resuscitation of the dear, departed, so-called greatest boom in history. Ponzi schemes don’t “bounce back,” they collapse for the simple reason that the pieces holding them up were not really there. Such are the unanticipated consequences of a media over-saturated culture that we were so easily deceived by appearances.
The emotions entrained by this implacable disaster have barely expressed themselves in the social arena. The public is still too shell-shocked by the prospect of losing everything – jobs, incomes, status, chattels, a future – to commence what the shrinks call “acting out.” Anyway, half the country is still acting out over the election of Mr. Trump three years ago.
But, for the moment, an interesting debate rages internationally as to whether the Covid-19 virus was some kind of engineered event designed to bring about various political outcomes. One thread declares that the Democratic Party, its media handmaidens, and a helpful Chinese leadership used the virus to blow up the US economy and finally, after several botched attempts, get rid of the vexing Mr. Trump. It’s a tidy story, but I don’t buy it, for the simple reason that the entire global economy has blown up, including China’s, so you can file that meme in the Wile E. Coyote folder.
A gloss on that one is the idea that NIAID director Anthony Fauci and other medical experts are wicked conspirators bent on destroying American morale by overstating the threat of Covid-19. This includes the phrase that the novel corona virus is “just another seasonal flu,” and so ordering people to stay away from work and business was unnecessary. Again, you’d have to ask yourself why medical experts and other plausibly intelligent people in so many other countries would do exactly the same thing. They can’t all be orcs.
The situation in Lebanon is deteriorating. Traffic lanes have all been reopened, but a rift has emerged between those who favour the free flow of traffic and the road blockers. The Free Patriotic Movement of President Michel Aoun, the Shiite Amal Movement of parliament speaker Nabih Berri and the Hezbollah condemn road closures; while the Future Movement led by Saad Hariri, a Sunni, the Lebanese Forces of the Maronite Samir Geagea and the Progressive Socialist Party of Walid Jumblatt, leader of Lebanon’s Druze, have attempted to reintroduce the roadblocks.
In the current political landscape, pursuing a simultaneous fight against corruption does not seem possible. Gebran Bassil (Free Patriotic Movement) announced that all the leading members of his party would make public their bank accounts. He also tabled a bill aimed at verifying the assets of civil servants. However, several hurdles would render such measures unworkable (the waiver of bank secrecy being prohibited by law in these circumstances; nothing has been said about the bank accounts belonging to the family members of political leaders; etc.).
Actually, corruption in Lebanon is not a violation of the law; it is the law itself that generates it. For example, there are import taxes, which nobody pays since the law grants an exemption to the 17 recognized religious communities. It is therefore sufficient to have the import declared by a person from one of these communities to avoid paying the tax. Thus, the port of Beirut loses out on US$ 3 billion every year.
The liquidity crisis, which sparked the 17 October protest movement, has worsened. Banks only allow cash withdrawals in Lebanese pounds up to a maximum amount equivalent to US$ 500 per week.
…click on the above link to read the rest of the article…
