Well, I’ve had better weeks. In addition to my job ending, my dog had to get $1,700 worth of veterinary work done (removing and testing a lump on his chest, and while he was getting that I got his teeth cleaned). So feel free to hit the donation jar at the bottom of the post.
A prosecutor overseeing the Hunter Biden tax probe likely intervened to protect President Biden from Department of Justice scrutiny, Eileen O’Connor, former assistant attorney general for the Justice Department’s Tax Division, testified at the first House Oversight impeachment hearing Thursday.
The impeachment inquiry, which was formally opened earlier this month without a full House vote, builds on the committee’s months-long probe into Biden’s alleged foreign influence peddling.
U.S. attorney for the District of Delaware David Weiss led the investigation into Hunter Biden’s taxes, which began in 2018, and was assisted by assistant U.S. attorney Lesley Wolf.
IRS whistleblowers who worked on the probe, and have since provided a trove of information to the committee, identified many deviations from standard procedure, which they claim were driven by Weiss and his staff as well as officials at main Justice in an attempt to slow walk or otherwise obstruct the probe.
The whistleblowers highlighted the fact that attorneys from the DOJ’s tax division suggested the removal of Hunter’s name from documents, including subpoenas, and pointed out that prosecutors at the U.S. attorney’s office in Delaware prohibited IRS and FBI investigators from asking about or referring to “the big guy” or “dad” in witness interviews.
Wolf also ordered investigators not to escalate the tax probe into a campaign-finance probe, according to a document the GOP committee obtained from the whistleblowers. Specifically, she told them not to pursue the possibility that a hefty sum Hunter received from a major Democratic donor to pay his back taxes may have constituted an illegal campaign-finance contribution.
Why, it’s almost as if there’s a different rule for powerful Democrats than for other Americans…
“Adam Schiff Funneled Millions To Defense Contractors After Taking Donations.” Of course he did. “This financial maneuvering coincided with Schiff receiving $8,500 in contributions from PMA Group PAC and two family members of Paul Magliocchetti, founder and owner of the lobbying firm retained by both defense companies. In 2011, Paul Magliocchetti was sentenced to 27 months in prison for making illegal campaign contributions.”
Target closes nine stores in Portland, San Francisco, Oakland, Seattle and New York City, citing losses from crime.
States are fighting back against ESG companies trying to destroy their oil and gas industries.
“Oklahoma is a natural gas and oil industry state,” [Oklahoma State Auditor Cindy Byrd] said. “These things are very important to us, and we’ve seen that shut down over the last few years, which is really hurting Oklahoma.”
Increasingly, the environmental social and governance (ESG) industry is coordinating efforts among banks, insurance companies, and asset managers to cut America’s production of fossil fuels. It coordinates these efforts through a coalition of net-zero associations under the umbrella of the U.N.-affiliated Glasgow Financial Alliance for Net Zero (GFANZ).
The net-zero clubs that are part of GFANZ encompass virtually all elements of global finance, including the Net Zero Banking Alliance (NZBA), the Net Zero Insurance Alliance (NZIA), the Net Zero Asset Managers initiative (NZAMi), the Net Zero Asset Owners Alliance (NZAOA) and the Net Zero Financial Service Providers Alliance (NZFSPA). Members of these alliances pledge to work together to achieve UN goals of net zero CO2 emissions by 2050 or sooner.
We thought about investments, getting good returns, trying to make money with your money, and that was the prominent thought when I first got in office,” said Kentucky State Treasurer Allison Ball. “I remember when I first started coming to events, I began to hear about an initiative called ESG, and I thought at the time that this was academic; I didn’t really take it very seriously.
“In the course of the last couple of years, it began to become very aggressively pushed,” she told The Epoch Times. “There’s been an effort to really make it the only game in town, to really shift that mentality from investing to make money, making sure you’re getting good returns, to using investments as leverage to push certain mostly political ideas.
“Coal and oil and gas industries, those are signature industries in Kentucky,” Ms. Ball said. “And they’ve been targeted very strongly by the E part of ESG, so I began to see real impacts on the economy of Kentucky, my home area.”
The felony convictions of four former Navy officers in one of the worst bribery cases in the maritime branch’s history were vacated Wednesday due to questions about prosecutorial misconduct, the latest setback to the government’s years-long efforts in going after dozens of military officials tied to Leonard Francis, a defense contractor nicknamed “Fat Leonard.”
U.S. District Judge Janis Sammartino called the misconduct “outrageous” and agreed to allow the four men to plead guilty to a misdemeanor and pay a $100 fine each.
California Democratic Senator Dianne Feinstein dead at 90.
“A group of five Harris County residents filed a petition in state district court on Friday seeking to remove Harris County Judge Lina Hidalgo from office, arguing that she has abandoned her duties and responsibilities as the elected chief executive of the state’s most populous county….petitioning to remove Hidalgo under Texas Local Government code allowing for removal of an unfit or incompetent elected official.” She’s been on “mental health leave” since July.
“Prosper ISD Taxpayers Debate Priciest High School Stadium in Texas.” As in $94.8 million pricey. And that’s after they already built one for $53 million, the fifth priciest in the state, that opened in 2019. And they’ve already built two high schools that cost $200 million each, presumably with gold-plated microscopes and Tito Puente as the music teacher…
2009 – The Obama-Biden administration takes office
November 1, 2013 – China / BHR:
Hunter Biden, business associate, and Chinese investors agree to create Bohai Harvest RST Equity Investment Fund Management Co., Ltd. (BHR), an investment fund controlled by the Bank of China, to focus on mergers and acquisitions, and investment in and reforms of state-owned enterprise.
December 4, 2013 – China / BHR
Vice President Biden travels with Hunter Biden on Air Force 2 to China and meets CEO of BHR, Jonathan Li. Shortly thereafter, BHR’s business license was approved and Hunter Biden was a board member.
February 5, 2014 – Kazakhstan
Kenes Rakishev, a Kazakhstani businessman, meets with Hunter Biden at a hotel in Washington, D.C.
April 15, 2014 – Ukraine
Burisma, a Ukrainian energy company, appoints Biden business associate to their board of directors.
After initially killing a bill on July 12, 2023 that would have increased the penalties on child sex traffickers, the Democrats who completely control the California Assembly’s Public Safety Committee reversed course one day later and voted to advance the bill.
With a final vote of 6-0, including two abstentions from progressive Democrats, the bill now moves to the Appropriations Committee, after which, if it is approved, can move the bill to be voted upon by the entire State Assembly. If passed, SB 14 will make trafficking of minors a serious felony that would qualify under California’s three strikes law, which keeps dangerous, serial criminals off the streets, and make individuals convicted of the crime ineligible for early release.
I highlight the two abstentions by Democrats. Even after a nationwide uproar over their willingness to block harsh penalties on those who traffic young children for sexual slavery, these two Democrats, including Assembly Majority Leader Isaac Bryan (D-Los Angeles), still could not bring themselves to vote for the bill.
State Senator Charles Schwertner (my state senator) has his DWI charges dismissed. Still, he hardly crowned himself in glory. At least he didn’t yell “Call Greg!” (It did make me wonder what Rosemary Lehmberg is doing today, and if she ever conquered her alcoholism…)
A detailed look at the recording of one of my favorite albums of all time: Peter Gabriel III.
Just what does electronic music pioneer Morton Subotnick’s “Silver Apples of the Moon” sound like? You know that scene in a 70s SciFi dystopia where someone’s face gets ripped off to reveal they’re a robot? It sounds like that.
GWAR plays for NPR. So on one side you have horrible monsters who are unbearable to listen to, and on the other side you have GWAR…
The rich world was a population column from [as opposed to a pyramid] 1945 to 1992, and with the end of the Cold War, the developing world became a column in 1992 until now. The problem is that this is all temporary, because birth rate keeps dropping. People keep living older and your column eventually inverts into an open pyramid upside down. And now you no longer have children, you no longer have a replacement generation at all, and there aren’t enough people in their 20s and 30s to buy everything, and there aren’t enough people in their 40s and 50s to pay for the retirees. So this decade was always going to be the decade that most of the advanced world moves into mass retirement, and the economic model collapses, and next decade was always going to be the decade that that happened to the developing world.
“The Chinese have jumped the ship and this is their last decade, too.”
“We now know that they’ve lied about their population statistics and they’re they over counted their population by over 100 million people, all of whom would have been born since the one child policy was adopted. So this is one of those places where they’ve got more people in their 60s and their 50s and their 40s and their 30s and their 20s.”
“Mao was concerned that as the country was modernizing, the birth rate wasn’t dropping fast enough, and that the young generation was literally going to eat the country alive. So they went through a breakneck urbanization program which destroyed the birth rate, at the same time they penalized anyone who wanted to have kids, and both of those at the same time have generated the demographic collapse we’re in now.”
The male to female sex ratio in China was bad before, and now it’s obviously worse.
“Without young people, we’ve seen their labor costs increase by a factor of 14 since the year 2000, so Mexican labor is now one-third the cost of Chinese labor. Their educational system focuses on memorization over skills, so despite a trillion dollars of investment in a bottomless supply of intellectual property theft, they really haven’t advanced technologically in the last 15 years. Mexican labor is probably about twice as skilled as Chinese labor now, even though it’s one-third the cost.”
“They’ve consolidated into an ethnic-based paranoid nationalistic cult of
personality, and it’s very difficult for the XI Administration to even run it, because it’s not an administration anymore no one wants to bring Xi information on anything.”
The Biden Administration has adopted the Trump Administration’s trade policies on China.
“They now have tech barricades that prevent the Chinese from buying the equipment, the tools or the software that’s necessary to make semiconductors. In fact, [Biden] went so far as to say any Americans working in the sector have to either quit or give up their American citizenship. Every single one of them either quit or was transferred abroad within 24 hours.”
“They’re completely dependent on the U.S Navy to access international trade, they are the most vulnerable country in the world right now. And based on how things go with Russia, we’re looking at a significant amount of raw materials falling off the map, specifically food and energy, and the Chinese are the world’s largest importer of both of those things. So there’s no version of this where China comes through looking good.”
“Say what you will about the Russian economy (it’s corrupt, it’s inefficient, it’s not very high value-add), but it’s a massive producer and exporter of food and energy. You put the sanctions that are on the Russians on Beijing and you get a de-industrialization collapse and a famine that kills 500 million people in under a year.”
“Even if the Chinese were able to capture Taiwan without firing a shot, it doesn’t solve anything for them. They’re still food importers, they’re still dependent on the United States, they’re still energy importers. And even if they take every single one of those semiconductor fab facilities intact, they don’t know how to operate them, because they can’t operate their own, their own are among the worst in the world.”
“One of the fun things about Russia versus China right now is that the Russian information security is so poor that American intelligence is literally listening on everything, but in China we can hear into the office but there are no conversations happening.” I suggest taking both these revelations with a few grains of salt. Maybe Zeihan has great sources in the intelligence community, or maybe Zeihan’s great sources are lying.
Plus more on how Xi has killed or exiled any possible challenger to his power, and how they’re now having a massive Flu Manchu outbreak. “Their overall health is worse than ours, diabetes as a percentage of the population is higher, they don’t have a critical care system like we have, and their hospitals are really their only line of defense.”
Next: Why EVs are a disaster.
“All kinds of people think I’m full of shit!”
Rogan: “What is your perspective on EVS?” Zeihan: “They’re not nearly
as good on carbon as people think. Most of the data that exists doesn’t take into the fact that most of this stuff is processed in China where it’s all coal doesn’t take [into account] the fact that most grids they run out are also majority fossil fuels. And that extends the break-even time for carbon from one year to either five or ten based on what model you’re talking. Cyber trucks are far worse than EVs, but the bigger problems we’re just not going to be able to make them much longer.”
To electrify everything “We need twice as much copper and four times as much chromium and four times as much nickel and ten times as much lithium, and so on. We have never, ever, in any decade in human history, doubled the amount of a mainline material production in ten years, ever, and we need all of this by 2030. No, it’s just not technically possible.”
Zeihan says California’s mandates for phasing out gasoline by 2035 aren’t quite as bad as they seem, as the bureaucracy has the ability to move the goal posts if they prove to be unfeasible. Pardon me if I’m not sold on the beneficent rationality of California’s hard left bureaucracy.
Speaking of things I’m skeptical of:
There is a fascinating discussion happening in the environmental community right now, because they’re being confronted with reality. So California and Germany have very similar Green Tech policies, but the Germans have spent three times as much as California, but are only getting about a fifth as much power. I don’t know if you’ve ever been to Germany, but the sun doesn’t shine in Germany. And now, with the Russians on the warpath and their clean-ish energy from natural gas going away, they’re going back to lignite coal in force. It was already their number one source of power. The idea that Germany’s green is ridiculous, because they rely on really, really dirty coal, now especially. But there’s now a conversation going on between the German environmentalists and the Californian environmentalists about why California, in relative terms of doing so well at this, while Germany is not. And the answer is simple geography, but that’s never been part of the conversation in the environmental community before. Now it is. They should have had this conversation 15-20 years ago, but they’re having it now. And as soon as they come to the conclusion, unwillingly but they’ll get there, that we have to choose where we put our copper and our lithium and our nickle, EVs are not going to make the cut.
This assumes that California environmentalists are susceptible to the sweet voice of reason, and that modern environmentalism isn’t half religion and half scam. “It is difficult to get a man to understand something when his salary depends upon his not understanding it.” California’s Democratic power establishment has shown an amazing propensity to impose radical solutions that bring obvious and immediate harm to people that are not them. Why should they worry about forcing other people to buy pricey EVs when they already have theirs?
Next up: The drug war, both here and in Mexico.
Rogan starts by noting that marijuana legalization in California led to cartels planting massive amounts of weed in national forests, and suddenly guys who were game wardens are now wearing tactical gear and carrying machine guns.
“I think the mafia is a great example for why you shouldn’t look for the silver bullet [of drug legalization], because, yes, that in the 1920s during prohibition, was one of the big reasons it got going, but the mafia didn’t waste any time in diversifying and neither have the cartels.”
“They’ve gotten into cargo theft and kidnapping and avocados and limes and real estate and local government.”
“Now the attractiveness of gutting them of some of their primary income. Should we look at that? Of course! But it’s not so simple as removing one and it just all stops.”
“The challenge we’re seeing in Mexico right now is that the, uh, the air quotes “good” cartel the, one that saw drugs as a business, is being broken up. If you remember El Chapo—” Rogan: “That’s the good cartel?” Zeihan: “Sinaloa cartel, yeah. He thought of himself as a Korean conglomerate president. So it was like ‘We smuggle drugs. That’s our business. You don’t mess with things that mess with the business. You don’t trip the old lady, you don’t steal her purse, you don’t shoot at the cops. These are people who live where we operate, we want them to be on our side, so maybe even throw a party every once in a while. You focus on the business.'”
“The replacement cartel is Jalisco New Generation, They’re led by a former Mexican military officer who thinks that rather than don’t shit where you sleep so that the people on your side whenever you move into a town, you shoot it up. You do kick over the old lady, you do take her purse, you make the people scared of you, that’s the point of this. Drug running is a side gig.”
“We are here to be powerful, and drug running is just one of the ways we make that happen. And he has taken the fight to every cartel and the Mexican government, and they’re in the process of trying to break into the United States.”
“El Chapo and the Sinaloa became the largest drug trafficking organization in America under the Obama Administration. And one of the reasons our birth rate went down, so far so fast is they basically either co-opted or killed American gangs. So they killed the people who were doing the killing. Not a lot of Americans got killed after that.” I think he meant to say murder rate.
“All of the other cartels control the access points in the United States, but
Jalisco New Generation now is challenging every single one of them trying to break through. And if they do, and they bring their business acumen, if you will north of the border, they’re going to start killing white chicks named Sheila in Phoenix and then we’re gonna have a very different conversation.”
“Sinaloa they co-opted the Hispanic gangs, especially the Mexican gangs, because there wasn’t a language barrier there, and they really targeted and gutted a lot of the African-American gangs. They took over drug smuggling and distribution from them to deny them income and then they just shot a lot of people…it was pretty much completed by the time we got to 2013.”
“Look at the violent crime rates in the United States, they’ve been trending down really significantly since about 2004 and the drop from 2004 to roughly 2014 was amazing. That’s largely Sinaloa.”
And now all the cartels are fighting and the murder rate in Mexico is skyrocketing.
He’s not a fan of legalizing cocaine:
Also says that cartels are now laundering money via marijuana dispensaries using the federal reserve.
And he’s not a fan of Crypto:
Bonus: “Maxine Waters is not exactly the brightest person in congress.”
A massive security breach of the Mexican government unveiled documents from the Mexico Secretariat of National Defense (Sedena). The leaked documents, published online by a group called Guacamaya, reveal that the Mexican military has been supplying cartels with weapons.
According to the leaked documents “On May 31, 2019, the military offered operators of the criminal group (Tejupilco drug cartel) 70 fragmentation grenades at a cost of 26,000 pesos (1300.29 USD) each; the criminal cell confirmed the purchase of eight of them, which were delivered to Atlacomulco, State of Mexico.”
The document then explained that not only were cartel members offered weapons, they were given classified information by military personnel that disclosed in full detail information on armed forces mobility and operations.
Following the May 31 document was an intelligence report made on June 10 of the same year that revealed that Sedena had full knowledge of the exchange and refused to act on it
The revelation comes just weeks after Texas Gov. Greg Abbott designated Mexican drug cartels as terrorist organizations and as millions of illegal aliens have poured across the southern border since President Joe Biden took office.
In light of the Biden administration’s inaction, some members of Texas’ congressional delegation say the time has come for Texas to declare an invasion on the southern border.
“Not only are the United Nations, the Biden Administration, and U.S. nonprofits supporting the invasion of our southern border, now the Mexican military is arming the Cartels smuggling migrants with hand grenades,” U.S. Rep. Lance Gooden told Texas Scorecard. “I fully support declaring the border crisis an invasion and closing our border with Mexico until this coordinated onslaught of migrants is under control.”
Maybe Mexico should get their own house in order before blaming American arms companies…
Dwight sent over the text of a firearms case decision in “ESTADOS UNIDOS MEXICANOS, Plaintiff, v. SMITH & WESSON BRANDS, INC.” etc., or Mexico v Smith & Wesson et. al. (“Barrett Firearms Manufacturing, Inc.; Beretta USA Corp.; Century International Arms, Inc.; Colt’s Manufacturing Company, LLC; Glock, Inc.; Sturm, Ruger & Co., Inc.; and Witmer Public Safety Group, Inc. d/b/a Interstate Arms.”)
The lawsuit was filed in the United States District Court for Massachusetts (because venue shopping) and the decision was handed down by Chief Judge F. Dennis Saylor IV.
A U.S. federal judge on Friday dismissed a lawsuit brought by the Mexican government against U.S. gun manufacturers arguing their commercial practices has led to bloodshed in Mexico.
Judge F. Dennis Saylor in Boston ruled Mexico’s claims did not overcome the broad protection provided to gun manufacturers by the Protection of Lawful Commerce in Arms Act passed in 2005.
The law shields gun manufacturers from damages “resulting from the criminal or unlawful misuse” of a firearm.
Quoting the text of the decision itself (which does not yet appear to be online anywhere):
Unfortunately for the government of Mexico, all of its claims are either barred by federal law or fail for other reasons. The PLCAA unequivocally bars lawsuits seeking to hold gun manufacturers responsible for the acts of individuals using guns for their intended purpose. And while the statute contains several narrow exceptions, none are applicable here.
This Court does not have the authority to ignore an act of Congress. Nor is its proper role to devise stratagems to avoid statutory commands, even where the allegations of the complaint may evoke a sympathetic response. And while the Court has considerable sympathy for the people of Mexico, and none whatsoever for those who traffic guns to Mexican criminal organizations, it is duty-bound to follow the law.
Accordingly, and for the reasons set forth below, the motions
to dismiss will be granted.
Not a picture of Judge Saylor.
This, of course, is the proper outcome. Lawful American gun manufacturers can’t be held accountable for the misuse of their products, nor should they be made scapegoats for Mexico’s inability to control their own criminal cartels.
MEXICO CITY — A gang riot inside a border prison that left two inmates dead quickly spread to the streets of Ciudad Juarez where alleged gang members killed nine more people, including four employees of a radio station, security officials said Friday.
The surge in violence recalled a far more deadly period in Juarez more than a decade earlier. Mexico’s powerful drug cartels commonly use local gangs to defend their territory and carry out their vendettas.
The federal government’s security undersecretary, Ricardo Mejía Berdeja, said the violence started inside the state prison after 1 p.m. Thursday, when member of the Mexicles gang attacked members of the rival Chapos.
Two inmates were killed and 20 injured.
Then suspected gang members outside the prison began burning businesses and shooting up Ciudad Juarez.
“They attacked the civilian, innocent population like a sort of revenge,” President Andrés Manuel López Obrador said. “It wasn’t just the clash between two groups, but it got to the point in which they began to shoot civilians, innocent people. That is the most unfortunate thing in this affair.”
Mejía said four employees of MegaRadio who were broadcasting a live promotional event outside a business were killed in the shooting.
Chihuahua state Attorney General Roberto Fierro Duarte said that a boy wounded in a shooting at a convenience store died later at the hospital, two women were killed in a fire at another gas station convenience store and two other men were shot elsewhere in the city.
U.S. government employees in Tijuana, Mexico have been urged to shelter in place as the U.S. consulate warned of multiple vehicle fires, roadblocks and other incidents early on Saturday.
“The U.S. Consulate General Tijuana is aware of reports of multiple vehicle fires, roadblocks, and heavy police activity in Tijuana, Mexicali, Rosarito, Ensenada, and Tecate. U.S. government employees have been instructed to shelter in place until further notice,” the consulate’s official Twitter account said.
The consulate further advised U.S. citizens to avoid the area, seek shelter if in the area, inform their friends and families of their situation and monitor news reports for information.
Police arrested members of the Jalisco New Generation cartel.
The first suspect of having organized and ordered the narco-blockades yesterday, Friday, in Baja California is Javier Adrián Beltrán Cabrera, according to the first indications received by the intelligence areas integrated in the Coordination Table for Peace and Security, reported the weekly Zeta.
Beltrán Cabrera, also known as “El Javi”, “El Pedrito”, “El Pit” and “Puma”, was imprisoned in 2011 for possession of a weapon and was released.
According to Zeta’s publication, Beltran Cabrera is listed as the leader of a criminal cell called “Los Erres” that had served as hitmen for the Sinaloa Cartel, but in 2022 allied with the Jalisco Cartel – New Generation (CJNG).
“El Puma” was being investigated as the mastermind of multiple murders committed in July and August in eastern Tijuana, but there is no arrest warrant for him.
Zeta reported that in four hours a total of 24 vehicles were set on fire in five of the seven municipalities of Baja California: Mexicali, Tecate, Ensenada, Tijuana and Rosarito.
Here’s video of a truck on fire in Tijuana:
As always, the twists and turns of the ever-present cartel war in Mexico remain seriously under-reported in American media. While calm for a while, Tijuana and Juarez flared up again as turned into hotspots for cartel violence over the last few years, and were ranked the second and third most violent cities in the world last year. (Indeed, seven of the ten most violent cities in the world were in Mexico, along with one each from South Africa, Brazil…and St. Louis. Thanks a lot, Kim Gardner.)
An administration interested in protecting the lives of Americans might clamp down on border security to prevent more cartel members from entering the country. That is not this administration. Their top goal still appears to be keeping the border wide open to get as many illegal aliens to cross over as they possibly can.
Instead of actual content, enjoy watching drivers attempting (and failing) to drive down the steep, rain-slick streets of the Paso Florentino in Mexico City.
Peter Zeihan is back with another provocative video (filmed at the Eisenhower Naval School) that suggests that China faces such massive problems that collapse may be imminent. “I see China with not just a demographic failure, but a failure of leadership, a failure of policy, an agricultural failure, and an energy failure, all at the same time. It is
entirely possible that this is the last year of the People’s Republic.”
Some of this (especially the demographic collapse) we’ve covered here before. Takeaways:
“China was already the fastest aging society in human history with the biggest sex imbalance. We already knew that their economic model would not match up with this demography this decade, we always knew that the economic collapse of China was coming.” And that was before we found China had over-counted their prime working age population by 100 million.
“I don’t see how China survives as a single political entity, much less a globally significant one. I don’t see how it survives this decade with these numbers, because this suggests that the Chinese population peaked back in 2003, and that Chinese economic efficiency probably peaked around the same time.”
Chinese labor is no longer cost-competitive with other Asian countries like Thailand or The Philippines, or Mexico. “This is the fastest labor [wage] appreciation in human history, including during the black death, including during all wars. So we’re looking at a 15-fold increase since 1999, [while] their labor effectiveness productivity is probably only increased by a factor of two, maybe three.”
“There is not an industrial process that is done in China that can’t be done in North America at a lower cost, because our labor is so much more productive, our energy is so much cheaper, our supply lines are so much shorter and you can produce stuff where people actually live.”
“The only reason we think of China as a major industrial player is because of the sunk cost of the preexisting industrial plant.”
“You don’t rebuild that somewhere else overnight. But it is happening. The United States is already in the process as its fastest industrialization, even faster than what we did during World War II.” That’s some mighty bold talk, but the U.S. population is roughly 2.5X larger than at the start of World War II.
“We probably need to double the size of our industrial plant in the next 5-10 years. That’ll be awkward, expensive, inflationary, but on the other side of it, we will have a far more insulated and secure supply chain system. The problem is just getting from here to there, and that is not a straight line.”
The Chinese plan has always been to let the Russians go first, just as a proof of concept. So their thinking was a fast war that conquers Taiwan in a matter of days, that imposes a done deal upon the world, and everyone just sucks it up and takes it, because China is too economically powerful to be challenged. And once you hold the territory, there’s no point in going to a broad scale war against the Chinese when it’s already happened. That’s always been their plan.
Oh my.
With the Russians, they have had every aspect of all of their planning for the last 40 years set on fire and burned to ash in less than a month. So number one it will not be a quick war, because Ukraine was one of the world’s less militarily competent countries in the first place…
I think this statement may have been true in 2014, but I don’t think it was true by the time Russia invaded. Ukraine professionalized and modernized their military with considerable help and guidance from western militaries, and developed a competent officer and NCO core (partially thanks to experience with the low-intensity conflict in Donbas).
…and they’re still holding out against the Russians. Taiwan has been preparing for this war since 1955. Taiwan has a moat. Taiwan has a nuclear program that started in 1974, so if we have a two-month accumulation of Chinese forces getting ready to push, the Taiwanese will see it because this is the only national security question that they pay any attention to, and they will make a nuclear device. And so the only way that the Chinese can even make an attempt on Taiwan is to text all of their soldiers at the same time and just say everyone get to the coast take a fishing boat with your buddies and start moving on Taiwan. They know it is going to cost them a million troops just to get there.
I find this scenario unlikely, and even less likely to succeed.
“Now they know from Ukraine that it’s not going to be a pushover. [Taiwan] is mountainous, it’s forested as opposed to Ukraine, which is flat and open.”
Then there are the sanctions:
Russia has many flaws, but they’re a massive producer of food and energy products. If you put the sanctions that we have put against Russia onto China, oh my. China imports 85% of their energy, 85% of that from the Persian Gulf, and they import 85% of inputs that are necessary to grow their food. So you would have an industrial collapse, a civilizational breakdown, and mass famine within six months, and then you would probably lose a half a billion Chinese over the course of the next year to famine.
Again, I think this is overstated, as there would be enough countries willing to break sanctions, and enough radical actions China could take (conquer Mongolia and parts of Siberia for farming, throw off all Pacific fishing limits, etc.) to avoid the worst case famine scenario. Not that they wouldn’t be in a world of hurt…
The one that has scared the Chinese the most are the boycotts. BP and Halliburton didn’t have to leave, they weren’t doing anything that was sanctioned, but the super majors and the oil services firms and countless other firms left on a moral imperative prompted by individual shareholders and consumers. And in China, the idea that the average Joe or Jane can influence policy is so antithetical to their mindset that they had no idea this was even possible, much less it was going to happen. So everything that the Chinese have based their system and their strategic policy on for the last 30 years has been proven in the last two months to be utterly wrong.”
My judgement of Zeihan’s analysis is that he’s more right than wrong, but has a tendency to overstate his case. Still, a worldwide inflationary spiral and energy shortage is the sort of thing that’s likely to destabilize a lot of governments worldwide, and China’s economy is built on more smoke and mirrors than most.
Time to do a report on a war theater where heavily armored vehicles shoot it out with each other in city streets: Mexico.
(You were thinking Ukraine? Probably an update on that next week.)
Cartel violence waxes and wanes, and regular readers know that the cartels are heavily armed. Even so, it may come as a shock to many that Mexican drug cartels have their own “tanks” (AKA “Monstruo”), i.e. up-armored civilian vehicles more accurately described as technicals or armored cars.
Mexico’s Guardia Nacional in Jalisco have captured a homemade ‘narco tank’ thought to be used by one of the country’s most powerful drug cartels.
The officials shared the news to Twitter after it was found in the area of Jalisco on 12 April.
According to the Mexican police, the vehicle was harbouring 2,000 rounds of ammunition.
In Texas, we call that “a good start.”
The heavy metal plated vehicle is thought to be owned by the Cartel Jalisco Nueva Generacion [CJNG], who operate in the area, as reported by The Star.
Painted green to blend in with surroundings, the tank is heavily armoured, with protective metal casing around the driver’s sider.
Publication Borderland Beat noted that the tank was discovered while being transported inside of a trailer.
The trailer limitation is probably why it seems unusually narrow.
En #Jalisco, la #GuardiaNacional aseguró un vehículo con blindaje artesanal y alrededor de dos mil cartuchos útiles que fueron localizados al interior de un tractocamión, como resultado de los recorridos para inhibir hechos delictivos en el municipio de Jamay. pic.twitter.com/jLgKnf5eqh
Here’s a video covering various captured cartel narco tanks (though the voice-over isn’t the best).
Here’s a shorter video from several years ago showing various monstruos, mainly from the 2010-2011 timeframe.
This video shows still more footage, including (about 1:50 in) modern CJNG vehicles that not only look more professionally constructed, but have red-blue flashing lights and a cartel logo on the side, which does rather suggest they’re not trying to keep a low profile. Also includes combat footage of CJNG blowing away Northeast Cartel (CDN) rivals through their own gunholes.
Here’s a tweet that shows video of two other captured Nueva Generacion vehicles in 2019:
"Elements of the Mexican Army, seized several armored vehicles in a workshop allegedly used by members of the Jalisco New Generation Cartel. The events took place in the municipality of Tuxpan, in the state of Jalisco."
I had no intention of posting another Peter Zeihan video so quickly after Is China Screwed?, but it’s also been a good long while since I did a Texas vs. California update, so let’s tuck in to this video:
Takeaways:
Texas doesn’t attract foreign investment.
Instead, Texas lures development and projects from other states with target tax breaks. “You can stay in Illinois and pay 20% tax or come to Texas, where we’ll give you a 20 year deferment and you’ll pay no tax.” (This is a bit overstated; some companies get those sweeteners, but for most Texas locales simply offer sounder fundamentals.)
“Everything is inexpensive. It’s where the food comes from, it’s where the energy comes from. The land is cheap. Mexico is right next door. It’s got the major port in Houston. It’s a financial center, it’s an energy center, it’s a manufacturing center, it’s a processing era. It’s all of those things.”
As global trade becomes more difficult, Texas moves up the value-added chain with more processed and refined goods. Lots of incentive for all sorts of manufacturers to relocate to Texas to take advantage of these intermediate products.
“Say what you will about the Donald Trump Administration, the renegotiation of NAFTA was a brilliant call, it was probably overdue by 15 years.” More North American content, especially from Texas and Mexico.
“Texas trades nearly as much with Mexico as the rest of the country combined.” Huge for automotive, but also electronics and aerospace.
Labor shortages: “Texas is just hoovering up people from across the entire country.”
“People are moving to the West, the Southwest and the South. Texas is right in the middle of that. It has the cheapest land and the cheapest power and the cheapest food.”
Biggest success story for the next 30 years: Houston. “It has it’s finger in each and every one of those pies. It works with the Mexicans, it’s in the energy sector, it’s its own financial link. It’s on the highway system that links on the East coast. It’s good at moving large pieces of metal around, so it’s getting into heavy equipment, it’s already in automotive. It has everything.”
My caveat: Not everything. It doesn’t have much of a software base outside the oil industry and a few related verticals, and it doesn’t have any semiconductor fabs (both of which the Austin and Dallas areas have in considerable depth).
Plus: Third largest metro in the country.
“Everything you hear about California when it comes to regulation and cost is true.”
All the good land has been grabbed. Maybe growth on the fringes of LA.
“The same urbanization and depopulation push that hit Europeans 60 years ago hit Mexico 25 years ago.”
“California is looking at decades of depopulation moving forward. Not catastrophic and not rapid.”
“I see Oregon and Washington as the next California, and I don’t mean that in a good way.”
Things are better the other side of the mountains (Yakima, WA, and Bend, OR). Also Tri-Cities (Kennewick, Pasco, and Richland), WA.
“The same thing that’s happening in the United States with the retirement of the baby boomers is happening in the wider world. But what is unique about the American baby boomers is that they actually had kids. So we’ve got the Millennials, which are a large generation that are providing a lot of consumption and ballast. That doesn’t exist in most of the rest of the world.”
And the rest of the world is screwed. “You’re looking at general economic degradation on a broad scale that we haven’t seen in well over a century and a half.”
Solution for the rest of the world is printing currency. Thus massive capital flight to more stable locations. “Nine cases out of ten that safer place is the United States.”
This all seems to excerpted from his book The End of the World Is Just The Beginning. As with some of his other videos, I think he’s identified some real concerns, but overstates his case (and the nearness of an imminent global trade collapse rather than some retrenchment). Irrational things can go on a whole lot longer than you might think they would be able to…
