Two landmark Supreme Court cases drop, another woke social justice child-rapist exposed, Keith Olbermann channels John C. Calhoun, and the secret plans to nuke Yorkshire. It’s the Friday LinkSwarm!
Just like the old gypsy woman said leakers indicated, the Supreme Court has overturned Roe vs. Wade.
The Supreme Court on Friday overturned Roe v. Wade, the 1973 ruling that legalized abortion, allowing a Mississippi law that bans abortions after 15 weeks to take effect.
“The Constitution does not confer a right to abortion; Roe and Casey are overruled; and the authority to regulate abortion is returned to the people and their elected representatives,” Justice Samuel Alito wrote for the 6-3 majority.
Justice Alito was joined by Justices Amy Coney Barrett, Neil Gorsuch, Brett Kavanaugh, Clarence Thomas, and Chief Justice John Roberts in the majority. Justice Roberts wrote in a concurring opinion with the majority that he would have taken a “more measured course” stopping short of overturning Roe altogether, but agreed that the Mississippi abortion ban should stand.
The Court’s liberal Justices Stephen Breyer, Elena Kagan, and Sonia Sotomayor dissented….
The ruling in Dobbs v. Jackson Women’s Health Organization means each state will now be able to determine its own regulations on abortion, including whether and when to prohibit abortion.
In New York State Rifle and Pistol Association v. Bruen, the Court affirmed that gun rights are due the same protection as all other constitutional rights.
To which I can only reply “Duh. What took them so long?”
Today’s Supreme Court decision in New York State Rifle and Pistol Association v. Bruen is not only the most important Second Amendment ruling since D.C. v. Heller, it is potentially the most important Second Amendment ruling in American history.
Not sure about that, as Heller firmly established the gun ownership was an individual right unconnected to militia service. That laid the conceptual groundwork for today’s ruling.
For all the brouhaha, the question at hand in Bruen was rather straightforward: Can the state of New York require that applicants for gun-carry permits “demonstrate a special need for self-protection distinguishable from that of the general community,” or is New York obliged by the Constitution to offer a “shall issue” regime of the sort that 43 of the other 49 states have adopted? By a 6–3 vote, the justices decided that the latter approach is required. In the United States, Clarence Thomas’s majority opinion concluded, “authorities must issue concealed-carry licenses whenever applicants satisfy certain threshold requirements, without granting licensing officials discretion to deny licenses based on a perceived lack of need or suitability.” Moreover, while there is nothing illegal about America’s existing state-level permitting systems, those systems may not be mere smokescreens for outright prohibition, unequal protection, or unacceptable delay. “We do not rule out,” Thomas added in a footnote, any “constitutional challenges to shall-issue regimes where, for example, lengthy wait times in processing license applications or exorbitant fees deny ordinary citizens their right to public carry.”
As Justice Alito was keen to note, this “holding decides nothing about who may lawfully possess a firearm or the requirements that must be met to buy a gun. Nor does it decide anything about the kinds of weapons that people may possess.” It concludes solely that:
The exercise of other constitutional rights does not require individuals to demonstrate to government officers some special need. The Second Amendment right to carry arms in public for self-defense is no different. New York’s proper-cause requirement violates the Fourteenth Amendment by preventing law-abiding citizens with ordinary self-defense needs from exercising their right to keep and bear arms in public.
Bottom line: New York is allowed to exclude carry-permit applications on a categorical basis (e.g., the applicant has a felony conviction), but not on a subjective one (e.g., the applicant doesn’t “need” a gun in the view of the determining officer).
To get there, the majority first determined that “nothing in the Second Amendment’s text draws a home/public distinction with respect to the right to keep and bear arms.” Indeed, “to confine the right to ‘bear’ arms to the home,” the majority observed, “would nullify half of the Second Amendment’s operative protections.” This, Thomas explained, would not do, because “the constitutional right to bear arms in public for self-defense is not ‘a second-class right, subject to an entirely different body of rules than the other Bill of Rights guarantees.’”
Liberals are taking the gun and abortion rulings well. Ha, just kidding! Keith Olbermann came out for nullification. Because nothing says “progressive liberalism” like adopting the policies of South Carolina from 1832.
Ukraine has banned the main opposition party. Not a great look. Though you know FDR would have tried that with Republicans if he thought they posed more of a threat to his agenda and the Supreme Court would let him get away with it…
Israel is headed for yet another election. “After almost one year of taking power, Israel’s ruling coalition has agreed to dissolve the parliament and hold new elections. ‘Israeli Prime Minister Naftali Bennett’s office announced Monday that his weakened coalition will be disbanded and the country will head to new elections.'” (“How many elections is that now, five?” “Shut up! Don’t tell Mere!”)
International Swimming Federation bans men from competing. It’s astonishing that headline even needs to be written…
Powers that be in Tennessee are threatening YouTuber Whistlin Diesel with a year in prison for…splashing with a jet ski. Sounds like a clear abuse of power to me…
A review of one of the last production Trebants, the crappy, under-powered, plastic communist car East Germans had to wait years to buy. Let this be another reminder that commies aren’t cool and the consumer goods produced by commie companies that don’t have to deal with market competition are crap.
“In my day, we had to work twenty-five hours a day, eight days a week, and they set off a nuclear explosion underneath us! You tell that to kids these days and they don’t believe you!”
“After ‘Lightyear’ Bombs, Disney Quietly Cancels Their Upcoming Movie ‘Brokeback Woody.”
Lithuania has begun a ban on the rail transit of goods subject to European Union sanctions to the Russian far-western exclave of Kaliningrad, transport authorities in the Baltic nation said on June 18.
The EU sanctions list includes coal, metals, construction materials, and advanced technology.
Anton Alikhanov, the governor of the Russian oblast, said the ban would cover around 50 percent of the items that Kaliningrad imports.
Alikhanov said the region, which has an ice-free port on the Baltic Sea, will call on Russian federal authorities to take tit-for-tat measures against the EU country for imposing the ban. He said he would also seek to have more goods sent by ship to the oblast.
The cargo unit of Lithuania’s state railways service set out details of the ban in a letter to clients following “clarification” from the European Commission on the mechanism for applying the sanctions.
Previously, Lithuanian Deputy Foreign Minister Mantas Adomenas said the ministry was waiting for “clarification from the European Commission on applying European sanctions to Kaliningrad cargo transit.”
The commission stated that sanctioned goods and cargo should still be prohibited even if they travel from one part of Russia to another but through EU territory.
The European Union, United States, and others have set strict sanctions on Moscow for its unprovoked invasion of Ukraine.
As to why Russia ended up with a formerly German enclave between Poland and Lithuania, History Matters provides a handy guide:
The importance to Kaliningrad is that it’s Russia’s only ice-free port on the Baltic Sea and home to the Russian Baltic fleet at Baltiysk.
Anyone who remembers the history of the Cold War knows that there’s no love lost between Lithuanians and Russia.
Peter Zeihan (him again) explains why this is such a big problem for Russia. “Russia is already shitting solid gold kittens over this…in any sort of meaningful conflict between Russia and NATO, Kaliningrad would probably fall in a matter of days if not hours.” So Russia is likely to put in more nuclear missiles.
Plus a bit on Europe abandoning their green delusions to embrace coal, and how German accounting chicanery artificially inflates the amount of renewable energy they’re actually generating and ignore a lot of coal generation for official figures.
Just days after the Chinese Communist Party lifted Shanghai’s last Flu Manchu lockdown, they’re locking Shanghai down again.
China’s commercial hub of Shanghai will lock down millions of people for mass COVID-19 testing this weekend – just 10 days after lifting its gruelling two-month lockdown – unsettling residents and raising concerns about the business impact.
Racing to stop a wider outbreak after discovering a handful of community cases, including a cluster traced to a popular beauty salon, authorities have ordered PCR testing for all residents in 14 of Shanghai’s 16 districts over the weekend.
Five of the districts said residents would not be allowed to leave their homes while the testing was carried out. A notice issued by Changning district described the stay-home requirement as “closed management” of the community being sampled.
The latest scare triggered a rush to grocery stores and online platforms to stock up on food, as users of China’s Twitter-like Weibo expressed fear they could be locked down for longer, having only started going back to work after the last lockdown was lifted on June 1.
Some areas had remained sealed off or quickly returned to lockdown due to infections and their close contacts.
While the rest of the world has moved on from useless lockdown foolishness, China is still Stuck On Stupid, and their “Zero Covid” policy has as much chance to stop spread as tying a live chicken rump to buboes had at stopping bubonic plague.
You’ve got to hand it to Peter Zeihan, who said this was precisely the sort of stupidity China would keep pursuing when talking about Tianjin’s lockdown last month.
I’ve been telling my clients for quite some time that it was only a matter of issue as to how the American/Chinese relationship imploded. It could be Trump, could be Biden, could be energy, could be food, could be security, could be trade, could be ethics, could be genocide. It’s a long list, but it appears that Covid ultimately is the one that is winning out.
The Chinese vaccine does not work against Covid, and the Chinese have spent the last two years lambasting the world and lying in the propaganda that they are the only country that’s even remotely dealt well with Covid. And they’ve specifically parroted a lot of the crazy theories out there about the western vaccines, that they make you magnetic or they make you infertile or whatever else, so they can’t import the western vaccines at all they have to wait until they make their own MRNA formula, and there’s no way that’s going to happen in the next year or two, so lockdowns are the only public health policy they have and now the majority of the parts of china that matter are offline.
If you’re stuck in manufacturing in China this is the beginning of the end, if it’s not the end already, because as soon as you have an opening, Omicron comes back in and then you get a closing again because that is the only tool that the Chinese Communist Party has left.
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.
American M777 howitzers could prove a major factor in turning the tide against Russian forces in the ongoing invasion of Ukraine thanks to their precision and power.
The howitzers are field artillery pieces that Ukrainian forces are already using to shell the Russians and represent an improvement on the equipment that the country’s military previously had.
The U.S. has begun sending 90 M777 Howitzers, while Australia is sending six and Canada is providing four. The M777s are the towed howitzers currently used by the U.S. Army and Marine Corps. They have a maximum range of 15 miles and require a crew of eight to 10 people.
Illia Ponomarenko, a defense reporter with The Kyiv Independent, tweeted on Tuesday: “M777s are already in Donbas, engaging Russian lines – confirmed!”
Snip.
The M777 Howitzers generally fire precision-guided Excalibur rounds that use the Global Positioning System (GPS) to home in on targets and it is expected that Ukraine will have been provided with these rounds. Canada was reportedly providing Excalibur shells, according to an AFP report on April 25.
Here’s more background on the M777:
A few brief takeaways:
Using aluminum and titanium, they weigh half what the M198 they’re replacing weighed. This means they’re fare more air-portable (at least for the U.S., slung from an Osprey).
Each costs about $4 million.
Contrary to the article above, the video asserts they only need a crew of five.
Fires seven rounds a minute.
Excalibur shells cost about $70,000 each. Pricey, but way cheaper than a Tomahawk cruise missile.
Here’s a “heavy on dramatic music but light on details” video of an Excalibur round hitting a target 65 klicks away.
Did Ukraine use their new American-gifted, GPS-guided howitzer shell to take out a Russian general? Peter Zeihan (yep, him again) makes this case in this short video:
Some of Zeihan’s analysis seems a little bit out there, but this one seems right on the cutting edge of plausibility, as we’re now able to do with artillery shells what once took guided missiles or smart bombs. But I don’t think Americans necessarily had to be involved in the targeting. It’s entirely possible that good signals intelligence pinpointed his location, or even just honed in a promising Russian communication cluster and hit General Valery Gerasimov as a stroke of good luck. Also, I should point out that Gerasimov’s death has not yet been confirmed.
But yes, it’s quite plausible that we and/or Ukraine can pinpoint the locations of Russian generals in theater and drop precision munitions on their heads from 25 miles away…
“One hundred and forty-six million [people] for such a vast territory is insufficient,” said Vladimir Putin at the end of last year. Russians haven’t been having enough children to replace themselves since the early Sixties. Birth rates are also stagnant in the West, but in Russia the problem is compounded by excess deaths: Russians die almost a decade earlier than Brits. Their President is clearly worried that he’s running out of subjects.
It’s a humiliating state of affairs because Russian power has always been built on the foundation of demography. Back in the 1830s, Alexis de Tocqueville foresaw that Russia would become a world power, because “Russia is of all the nations of the Old World the one whose population is increasing most rapidly”. The only other country with its population potential was the United States. De Tocqueville prophesised that, “Each one of them seems called by a secret design of Providence to hold in its hands one day the destinies of half the world.” A century later, they were the world’s two uncontested superpowers.
At the beginning of the 20th century, Russia’s population was 136 million, and was still booming, just as those of other European powers started to slow. Germany’s population was 56 million, excluding its colonies, and the threat of ever-larger cohorts of Russian recruits into the Tsar’s ranks haunted Germany’s leadership; historian and public intellectual Friedrich Meinecke fretted over the “almost inexhaustible fertility” of the Slavs while Chancellor Theobald von Bethmann Hollweg complained that “Russia grows and grows and lies on us like an ever-heavier nightmare”. This pressure was probably the decisive factor in Germany’s 1914 leap in the dark. German Secretary of State Gottlieb von Jagow wrote to the German ambassador in London as the storm was gathering that “in a few years, Russia will be ready … Then she will crush us on land by weight of numbers.”
In the First World War, it turned out, numbers were not enough to compensate for Russian industrial and organisational inferiority. But by the Second World War, Russia’s numeric superiority had exploded. Despite the horrors of Civil War and Bolshevism, the nation’s population grew at about three times the speed of Germany’s in the opening decades of the century. The army had an endless supply of soldiers, the military infrastructure an endless supply of workers, giving the country a decisive edge in the Forties. Vast spaces and appalling weather helped, but ultimately it was the endlessness of Russian manpower which ground down the Wehrmacht in what was perhaps the most epic military struggle of all time. Field Marshall Erich von Manstein complained as he faced Russia’s armies: “We confronted a hydra: for every head cut off, two new ones appeared to grow.”
But if demographic prowess buttressed Russian power then, population decline has undermined it in the years since. Most nations have developed out of the high birth and death rates seen throughout most of human history: as mortality and then fertility falls, first the population expands, then it flattens; eventually, it may contract. But in Russia this process has taken place with a vengeance.
At the time of its dissolution, the Soviet Union was the home of 290 million people, 50 million more than the USA. Today, the Russian Federation has less than half that number — and less than half of the USA’s current total. In large part, this is the result of the loss of non-Russian republics, including Ukraine (which at the outbreak of the current conflict had a population of 43 million). But in the late Soviet and early post-Soviet period, the country also collapsed into an orgy of suicide and alcoholism, particularly affecting the country’s men.
One journalist in Russia at the time wrote about how “the deaths kept piling up. People … were falling or perhaps jumping, off trains and out of windows; asphyxiating in country houses with faulty wood stoves or in apartment with jammed front door locks … drowning as a result of driving drunk into a lake … poisoning themselves with too much alcohol … dropping dead at absurdly early ages from heart attacks and strokes”. By the early years of this century, life expectancy for Russian men was on par with countries such as Madagascar and Sudan.
It’s hard to fight for the future when you’re unwilling to show up for it.
Peter Zeihan (yeah, that guy again) argues that, despite their numerous setbacks, the Russians aren’t going to give up.
A few takeaways:
Russia has always suffered from inferior technology, which is why they were humiliated in the Crimean War.
“But they will never stop until they have to, or they are forced to.”
“The Russians see this as an existential crisis. They will fight until they can’t.”
“This is going to last months, probably years.”
Russia’s current goal: “The complete obliteration of all civilian infrastructure” in Ukraine.
Russians consider anyone that doesn’t flee a fighter to be shot on sight.
They’ve killed at least 50,000, probably closer to 100,000.
Zeihan asserts that Russians are trying to plug traditional invasion corridors into Russia. “There are two of those corridors on the other side of Ukraine, one that goes SW into Romania, and one that goes NW into Poland.”
Since we know that the Russians intention is not to stop in Ukraine and is to go into multiple NATO countries, we know that that fight between American and Russian forces is destined to happen, and we now know how it will end: The Russians will be obliterated and they’ll be faced with a simple choice: A strategic retreat across the entire line of contact all the way back to Russia, maybe even further, or escalate to involve nukes, since the Russians see this as an existential crisis, that’s a fight we have to prevent. And so the United States specifically, and NATO in general is sending any weapon system that we possibly can that can be carried or put in a truck.
“If we can’t kill Russia in Ukraine, nukes come into play.”
“If you’re Poland and you’re Romania, you know ultimately the Russians are coming for you that changes your math and that changes the risks you’re willing to take, and if you border Poland or Romania, same general thing.”
“If we can get Predators and Reapers into the Ukrainians hands, they can blow up the Kirch Strait bridge, and then all of a sudden the Crimea is completely cut off. And from a war point of view, that would be fantastic because most of the gains the Russians have made have been out of Crimea.”
Russia has to win in Ukraine because “This is their last chance.”
I have significant doubts that Zeihan’s “plugging historical invasion gaps” is the driver for this conflict, mainly because such terrain gaps can be overcome in a more modern, dynamic geospatial war envelope by use of air, land, heliborn and remote-piloted combatants. Tactically still very significant, strategically less so. I think Russian chauvinism despises the very idea of a free and independent Ukraine, and lot of Putin decisions seem to be driven by ego. Pro-natalist policies like tax and welfare incentives seem a much better way to deal with their looming population crash than a risky invasion. But Putin makes all sorts of stupid calculations. And seeing his army’s performance in Ukraine would cause a sane man to back away from open conflict with NATO.
But Zeihan’s theory that the U.S. and NATO see this as a once-in-a-lifetime chance to defang Russia short of a direct conflict with NATO countries strikes me as correct.
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…
Here are two videos where Peter Zeihan argues that China is screwed for many reasons, not least of which is demographics.
Takeaways:
One child per couple means that China is “the fastest aging society in human history, with the largest sex imbalance in human history.”
“They’ve run out of people of childbearing age.”
They were going shrink in half by 2100. “Then they realized that they had been overcounting people for some time.” Then new data moved the date moved up to 2070. And now they’re saying it will be 2050. “For that to be true, the Chinese would have overcounted the population by 100 million.” And all of those missing people are of childbearing age.
Their population actually peaked 15 years ago.
“We’ve seen a 12-fold increase in Chinese labor costs since 1991.”
“China isn’t getting rich, it’s getting old.” They’re facing demographic collapse within a decade.
Xi’s instituted a cult of personality, and silenced anyone capable of independent thought. “He knows that the country’s current economic model has failed. And he knows he can’t guarantee economic growth, and he knows he can’t keep the lights on, and he knows he can’t win a war with the Americans.”
Xi’s solution? “Naked, blatant, ultra nationalism. Ethnocentric ultranationalism of the Nazi style.”
At the top, they don’t care about keeping the lights on. “A third of the country is facing power rationing.”
“These are the sorts of things that you do if you know that the bottom’s falling out and there’s nothing you can do about it, and you have to shift the conversation to remain in power.”
“In China, money is a political good. It exists to serve the needs of the CCP.”
“All of the economic growth we have seen in China since 2006 is because of debt.”
Corporate debt is 350% of GDP, “making China the most indebted country in human history in both absolute and relative terms.” Every country that’s come within half of this has collapsed under the debt load.
I’m omitting discussion of how China is screwed on semiconductors (covered enough here), and also the possibility of invading Taiwan (this video was released late last year, before Russia invaded Ukraine).
“The Biden administration in bits and pieces is redefining strategic ambiguity, and it’s not clear to me what the endgame is here.” Well, there’s a whole lot that isn’t clear about the Biden Administration…
Zeihan thinks Biden might recognize Taiwan for a foreign policy win. Zeihan also thinks that both China and Russia are so weak we can wait them out. (Remember: Pre-Ukraine invasion.)
Zeihan dismissive of both Obama and Trump foreign policy.
“Joe Biden has been on the wrong side and the right side of every foreign policy decision the U.S. has made in the last 45 years, because he doesn’t have any core beliefs he tacks with the wind.”
Now let’s forward to March 24, where Russia’s colossal failure in Ukraine has actually made China even more screwed.
Takeaways:
The biggest damage that we are seeing from the Ukraine war (outside of Ukraine, obviously) is in China. Because in one month the Russians have pulled back the blinders on what has been a 50-year strategic program, the idea that China can come to global power with American sponsorship, with American indifference, that it can take Taiwan, that it can intimidate Japan, that they can dominate all of east Asia and yet not suffer economically at all. It was always ridiculous, but now it’s been shown to just be absolutely stupid.
No one can escape the power of global markets because of trade.
“The yuan is only traded internally because it’s the most manipulated currency in history. The euro confiscates bank deposits to pay for bailouts.”
Russia is the world’s second largest oil exporter, and it can’t export more to China because the pipes that go east don’t interconnect with the ones that go west. “The rail lines are already beyond capacity.”
In the west: “One way or another, those pipes aren’t surviving this year.” (Not sure that’s correct, but I’ve long thought that we should be seeing more structure hits inside Russia than we’ve seen thus far.)
“The stuff that goes to the Black Sea is in a war zone, so insurance companies will not give the indemnification that is necessary for vessels to operate in that area. So the only way a ship can go and dock it overseas right now is if a country gives its sovereign indemnification and takes all the risk.”
Primorsk, on the Baltic, is open. However: “Ship captains for the most part are refusing to go, and European dock workers are refusing to unload the cargo when it arrives. So that is still in use but not nearly as much, maybe a quarter of what it used to be before the war started.”
To get more oil to China: “You would have to build a fundamentally new infrastructure from the fields in northwest Siberia to Chinese population centers that is greater than the distance from Miami to Anchorage, most of which is through virgin territory that is very rugged. That’s a 10-year program minimum even with the Chinese building it.”
“We’re looking at the single largest removal of crude from the market ever, and in proportional terms it’s going to have a shock somewhat similar to World War II.”
We have insurance companies not doing it, shipping companies not doing it, dock workers not doing it and now Halliburton, Baker Hughes and Schlumberger have pulled out, and they do the technical work that makes a lot of this possible. All the super majors are gone, and we even have a couple of major projects out in Sakhalin that are probably just going to die because the Russians can’t make those projects work by themselves. Most of the oil and gas out of that goes to China, so we’re actually looking at an environment where the Chinese see reduced flows rather than increased, as Russia is just melon-scooped out of the market.
When the Russians fell under sanctions, everything that the Chinese thought was true about their future was laid bare as, at best, wishful thinking and bad analysis. So they are now looking east to the United States and west to the Russians in a little bit of a panic, because they are being tied indirectly to what’s going on in Ukraine. And they have now found out not only does the west’s and specifically the United States’ financial tools work very well, they now know they would work much better against China than against Russia, because at its core Russia is a commodities exporter, most notably oil, natural gas and food. China imports all those things, so if an equivalent sanctions regime was done against the Chinese, you’d have 500 million dead Chinese in less than a year from starvation.
Here I think he overstates the case, as there are a lot of emergency avenues a communist government could pursue to stave off starvation. Like invading Mongolia and turning it into emergency farmland. Which is not to so they wouldn’t have some starvation, especially in worse-case scenarios…
“The Chinese have always seen themselves as anti-American [well, the commies, anyway -LP], they’ve always seen themselves as anti-Western, anti-democracy and now they’re realizing that the mood of the man in the White House determines whether their country exists.”
As tight as the sanctions are, as big as they’re getting, they’re nothing compared to the corporate boycotts. Almost every single company that left Russia was under no legal requirement to do so, they just didn’t want to be associated with the war. And we’re talking about those ESG, social goody two-shoes mammoth companies like Exxon and Halliburton, who are now gone, and everyone else followed. So if that happened to China, you know that’s all of their investment that matters. That’s all of their technology transfers, that’s all of their end markets. This system, if it turned against China, would be far more damning than anything we’ve seen out of Russia so far.
I think Zeihan overstates the case a bit, and probably immanizes the timeline of crisis more than warranted, but the demographic and economic challenges China faces are very real.
Also keep in mind that no one in 1988 expected the Soviet Union to collapse as quickly as it did, either…