(Roughly) Daily

Posts Tagged ‘politics

“Exorbitant privilege”*…

Economic history books will commemorate the era we currently live in as the second wave of financial globalization, following the first wave during the Classical Gold Standard period. Our era is characterized by an unprecedented expansion of global financial flows. Partly, these flows form the counterpart to global value chains and the globalization of trade in goods and services. In the last few decades, however, they have been increasingly decoupled from the real sector. The financial infrastructure that enables this expansion is the international monetary system…

In its current shape, [the international monetary system] has a hierarchical structure with the US-Dollar (USD) at the top and various other monetary areas forming a multilayered periphery to it. A key feature of the system is the creation of USD offshore – a feature that in the 1950s and 60s developed in co-evolution with the Bretton Woods System and in the 1970s replaced it. Since the 2007–9 Financial Crisis, this ‘Offshore US-Dollar System’ has been backstopped by the Federal Reserve’s network of swap lines which are extended to other key central banks. This systemic evolution may continue in the decades to come, but other systemic arrangements are possible as well and have historical precedents. This article discusses four trajectories that would lead to different setups of the international monetary system by 2040, taking into account how its hierarchical structure and the role of offshore credit money creation may evolve. In addition to a continuation of USD hegemony, we present the emergence of competing monetary blocs, the formation of an international monetary federation and the disintegration into an international monetary anarchy…

Americans tend to take the global primacy of the U.S. Dollar for granted (indeed, often complaining about the current account imbalances to which huge quantities of off-shore dollars lead). But there’s no mistaking that this system has been been hugely advantageous to the U.S. Yet, as Steffen Murau (@steffenmurau) explains, it may not last: “The evolution of the Offshore US-Dollar System: past, present and four possible futures.”

See also Mernau’s “International Monetary System” (from whence, the image above), and Ben Bernanke’s “The dollar’s international role: An ‘exorbitant privilege’?

* Valéry Giscard d’Estaing (then the French Minister of Finance; later French President), referring to the benefit that accrues to the U.S. as a result of the U.S. Dollar being the world’s reserve currency

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As we count our blessings, we might recall that it was on this date in 1890 that journalist Nellie Bly completed her 72-day trip around the world.

In 1888, Bly suggested to her editor at the New York World that she take a trip around the world, attempting to turn the fictional Around the World in Eighty Days into fact for the first time.  A year later, at 9:40 a.m. on November 14, 1889, with two days’ notice, she boarded the steamer Augusta Victoria, and began her 24,899-mile journey.

She brought with her the dress she was wearing, a sturdy overcoat, several changes of underwear, and a small travel bag carrying her toiletry essentials. She carried most of her money (£200 in English bank notes and gold in total as well as some American currency) in a bag tied around her neck.

Bly traveled through England, France (where she met Jules Verne in Amiens), Brindisi, the Suez Canal, Colombo (Ceylon), the Straits Settlements of Penang and Singapore, Hong Kong, and Japan.  Just over seventy-two days after her departure from Hoboken, having used steamships and existing railway lines, Bly was back in New York; she beat Phileas Fogg’s time by almost 8 days.

Nellie Bly, in a publicity photo for her around-the-world voyage. Caption on the original photo reads: “Nellie Bly, The New York World‘s correspondent who placed a girdle round the earth in 72 days, 6 hours, and 11 minutes.”

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“Despite the constant negative press covfefe”*…

(Roughly) Daily rarely addresses the topically-political, but today– Inauguration Day in the U.S.– is a special occasion. So, even as we witness the not-as-peaceful-as-it-should-have-been transfer of power, we might spare a thought for the legacy of our out-going President…

We are still grappling with what it means to have endured Donald J. Trump’s presidency while still repairing the historic carnage of this tumultuous period in American history. This Presidential Library is an attempt to provide the American and International communities a place to reflect on what the rise of White Nationalism has meant to our country and try to eradicate it from our political discourse…

Hall of Tax Evasion– one of a dozen exhibits

Tax evasion or the world’s worst businessman… why choose just one when you could have both? You’ve read The Art of the Deal – now take in volume II: the art of being smarter than all of you idiots. This mural showcases the staggering amounts of money one man declares to have lost, all in an effort to prove to the world that he’s actually a… winner…

… and so very much more

A troubled history of failure– putting the 45th President’s life and work into historical context, while documenting the damage done to American institutions and spirit: “The Donald J. Trump Library.”

* President Donald J. Trump, Twitter, 31/5/17

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As we face history, we might (or might not) send birthday greetings to Kellyanne Conway; she was born on this date in 1967. A pollster and political consultant, she served as campaign manager for Donal Trump in 2016, then as Special Counselor to (and surrogate for) the President from 2017.

During her tenure, Conway has been embroiled in a series of controversies: using the phrase “alternative facts” to describe fictitious and disproven attendance numbers for Trump’s inauguration; speaking multiple times of a “Bowling Green massacre” that never occurred; and claiming that Michael Flynn had the full confidence of the president hours before he was dismissed. Members of Congress from both parties called for an investigation of an apparent ethics violation after she publicly endorsed commercial products associated with the president’s daughter, Ivanka Trump. And in June 2019, the U.S. Office of Special Counsel recommended that Conway be fired for “unprecedented” multiple violations of the Hatch Act of 1939.

Las summer, Conway stepped down from her Counselor position (after her daughter threatened to seek legal emancipation), though she still plays a surrogate role.

Kellyanne Conway is a member of the inaugural class of the “Hall of Enablers” at the Donald J. Trump Library.

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Written by LW

January 20, 2021 at 1:01 am

“Context is everything”*…

Figure and ground… do all grounds make bad stories, and only figures make good ones?

“What’s the story?”

No question is asked more often by editors in newsrooms than that one. And for good reason: that’s what news is about: The Story.

Or, in the parlance of the moment, The Narrative. (Trend.)

I was just 22 when I wrote my first stories as a journalist, reporting for a daily newspaper in New Jersey. It was there that I first learned that all stories are built around three elements:

1. Character

2. Problem

3. Movement toward resolution

Subtract one or more of those and all you’ll have is an item, or an incident. Not a story. Which won’t run. So let’s unpack those elements a bit.

The character can be a person, a group, a team, a cause—anything with a noun. Mainly the character needs to be worth caring about in some way. You can love the character, hate it (or him, or her or whatever). Mainly you have to care about the character enough to be interested.

The problem can be of any kind at all, so long as it causes conflict involving the character. All that matters is that the conflict keeps going, toward the possibility of resolution. If the conflict ends, the story is over. For example, if you’re at a sports event, and your team is up (or down) by forty points with five minutes left, the character you now care about is your own ass, and your problem is getting it out of the parking lot. If that struggle turns out to be interesting, it might be a story you tell later at a bar.)

Movement toward resolution is nothing more than that. Bear in mind that many stories never arrive at a conclusion. In fact, that may be part of the story itself. Soap operas work that way…

… we do have two big fails for journalism here:

1. Its appetite for stories proves a weakness when it’s fed by a genius at hogging the stage.

2. It avoids reporting what doesn’t fit the story format. This includes most of reality.

My favorite priest says “some truths are so deep only stories can tell them,” and I’m sure this is true. But stories by themselves are also inadequate ways to present essential facts people need to know, because by design they exclude what doesn’t fit “the narrative,” which is the modern way to talk about story—and to spin journalists. (My hairs of suspicion stand on end every time I hear the word “narrative.”)

So here’s the paradox: We need to know more than stories can tell, yet stories are pretty much all human beings are interested in. Character, problem and movement give shape and purpose to every human life. We can’t correct for it.

That’s why my topic here—a deep and abiding flaw (also a feature) of both journalism and human nature—is one most journalists won’t touch. The flawed nature of The Story itself is not a story. Same goes for “earned media coverage.” Both are features rather than bugs, because they cause much of journalism’s success, and debugging them has proven impossible…

Consider The Holocaust (six million dead) vs. the story of Ann Frank. The Rwandan genocide vs. Hotel Rwanda. China’s one child policy (untold millions of full-term fetuses aborted or born babies killed or left beside the road to die) vs. One Child Nation. The Rohingya conflict (more than 10,000 civilians dead, 128,000 internally displaced, 950,000+ chased elsewhere) vs. approximately nobody. Heard of Holodomor? How about any of the millions who died during Mao’s revolution in China?

Without a story, statistics are cemeteries of facts.

Sure, academics and obsessives of other kinds (including journalists) can exhume those facts. But Big-J journalism will always be preoccupied with stories. Including, unavoidably, the genius for generating them who currently occupies the White House…

We traffic in stories because people can’t help being interested in them. But stories also fail at telling truths that don’t fit a tale. Presupposition is part of the problem; but only part. More fundamentally it is the privileging of strong (pure) emotion over messy reality, of “narrative impact” over understanding. Doc Searls (@dsearls) on “Where Journalism Fails,” eminently worth reading in full.

For some practical advice, follow Searls’ link to Jay Rosen’s suggestions.

And for a painful case-in-point, consider the wise Patrick Wyman‘s thoughts on the horrors of January 6:

We have a strong tendency to understand events unfolding as a story, a narrative, with all the structural beats we expect from a story: beginning, rising action, climax, resolution. Even as we’re consciously aware that there will be a tomorrow, a next week, and a next year, it’s hard to avoid treating the most recent big thing – in this case, the riot on the Capitol – as either the end or beginning of one particular story.

Narrative is how we process information and give the world some shape and meaning. But it’s deeply misleading as an attempt to understand the complex interactions between past and present that define a political system…

Do read it in full here.

[Searls’ piece via friend MS]

* In this phrasing and others closely linked, many, many authors/speakers, including Mary Beard, Margaret Atwood, Mary Catherine Bateson, and A.D. Garrett

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As we only connect, we might send circumscribed birthday greetings to Edmund Burke; he was born on this date in Dublin on this date in 1729.  An author, orator, political theorist, and philosopher, he moved to England and served for many years in the House of Commons of Great Britain as a member of the Whig party.  He’s probably best remembered for his advocacy of the American and his opposition to the French revolutions.  While Burke was held up as a beacon by both conservatives and liberals in the 19th century, the 20th century generally viewed him as the philosophical founder of modern conservatism.

In “Consistency in Politics” Winston Churchill wrote:

On the one hand [Burke] is revealed as a foremost apostle of Liberty, on the other as the redoubtable champion of Authority. But a charge of political inconsistency applied to this life appears a mean and petty thing. History easily discerns the reasons and forces which actuated him, and the immense changes in the problems he was facing which evoked from the same profound mind and sincere spirit these entirely contrary manifestations. His soul revolted against tyranny, whether it appeared in the aspect of a domineering Monarch and a corrupt Court and Parliamentary system, or whether, mouthing the watch-words of a non-existent liberty, it towered up against him in the dictation of a brutal mob and wicked sect. No one can read the Burke of Liberty and the Burke of Authority without feeling that here was the same man pursuing the same ends, seeking the same ideals of society and Government, and defending them from assaults, now from one extreme, now from the other.

And indeed, historian Piers Brendon credits Burke’ paternalistic insistence the colonial domination was a trust, with laying the moral foundations for the British Empire:  Burke wrote that “The British Empire must be governed on a plan of freedom, for it will be governed by no other”– it was to be so exercised for the benefit of subject people that they would eventually attain their birthright—freedom” …a noble aim that was in the event an ideological bacillus, as Brendon observed, that would prove fatal.

“You can never plan the future by the past.” – “Letter to a Member of the National Assembly” (1791)

“Justice is itself the great standing policy of civil society; and any eminent departure from it, under any circumstances, lies under the suspicion of being no policy at all”. – Reflections on the Revolution in France (1790)

Burke c. 1767/69, from the studio of Joshua Reynolds

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“A prudent question is one-half of wisdom”*…

Some of the music to which we listened in 1971 [source]

What a difference five decades makes…

1971 was an eventful year: Intel released the world’s first commercial microprocessor, the 4004; the Aswan Dam was completed; Charles Manson and three of his followers received the death penalty: National Public Radio (NPR) broadcast for the first time; Walt Disney World opened in Florida: Mount Etna erupted (again): The “Pentagon Papers” were made public; the Attica Prion riots happened; the 26th Amendment (lowering the voting age to 18) was ratified; Amtrak, FedEx, the Nasdaq, and Greenpeace were created; China was admitted to the U.N.; Qatar and what is now the UAE were freed from British colonial rule; and so very much more…

Richard Nixon was U.S. President. Average income in the U.S. was $10,600; the average home price was $25,250. A movie ticket cost $1.50; a gallon of gas, $0.33. We listened to music the featured the albums pictured above; we saw Dirty Harry, A Clockwork Orange, The Last Picture Show, and Diamonds Are Forever at the movies; and we watched The Mary Tyler Moore Show, The Partridge Family, McCloud, and Walter Cronkite on TV.

As we look back fifty years, we can see that 1971 seems– beyond the idiosyncratic consequences of the many events that distinguished it– to have been a point of inflection, of sustained changes in direction economically, politically, socially, and culturally:

A small selection from a plethora of charts that ask: “WTF Happened In 1971?

* Francis Bacon

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As we hit the stacks, we might recall that it was on this date in 1964 that the Surgeon General of the United States, Dr. Luther Terry, M.D., published the landmark report Smoking and Health: Report of the Advisory Committee to the Surgeon General of the United States saying that smoking may be hazardous to health– and sparking national (and worldwide) anti-smoking efforts. While it wasn’t the first such declaration (nor even the first declaration by a U.S. official), it is notable for being arguably the most famous such declaration for its lasting and widespread effects both on the tobacco industry and on the worldwide perception of smoking. A federal ban on cigarette advertising on television went into effect… in 1971.

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“One who deceives will always find those who allow themselves to be deceived”*…

Even if 2020 [and indeed, the events of January 6, 2021] felt apocalyptic, it is reasonable to think we have not yet hit rock bottom. The threat of climate disaster and resource wars, the building of walls and refugee camps, the exorbitant wealth of powerful oligarchs alongside poverty and precarity—these will not go away with vaccines or new presidents. Amidst all this, no wonder Niccolò Machiavelli has returned to our reading lists. In his new biography of the Florentine Secretary, Machiavelli: The Art of Teaching the People What to Fear, originally published in French in 2017, historian Patrick Boucheron reminds us that there is always interest in Machiavelli in turbulent times “because he’s the man to philosophize in heavy weather. If we’re reading him today, it means we should be worried. He’s back: wake up.”

Born in 1469 in Florence, Machiavelli is a central figure in the Western canon of political philosophy. Though he is best known in the popular imagination as the conniving mastermind behind The Prince (written in 1513), which so many think of as a kind of House of Cards how-to guide for seizing and maintaining political power, we miss what is crucial when we reduce his political thought to the simplistic thesis that the ends justify the means. It is not this misunderstood consequentialism that is noteworthy in Machiavelli’s philosophy; what really makes his writing so radically distinctive is his class-based, materialist outlook. He came from an impoverished household, and his philosophy disrupted naturalized hierarchies and the hegemonic ideas that reproduce them. John Adams would rightly describe him as the founder of a “plebeian philosophy” that marshaled strong arguments for embracing popular control over government…

The introduction to the English edition of The Art of Teaching the People What to Fear, written in June 2019 for readers in the United States, begins with the theme of fear in politics and an issue of Time magazine with Trump on the cover. Boucheron argues that the United States had entered a “Machiavellian moment”—“the dawning realization of the inadequacy of the republican ideal”—in the aftermath of the 9/11 terrorist attacks and that today, under “Trumpian America,” a fusion of politics and fiction has allowed for techniques of domination to be perfected, setting “a general disregard for the ‘actual truth of the matter.’” Referencing George Orwell’s 1984, Boucheron sees the United States as captured by a propaganda machine that has undermined reality and common sense—“that sixth sense Machiavelli spoke of, the accessory knowledge that the people have of what is dominating them.” Given the pervasive lack of realism in U.S. politics today, it is clear that the republic would appear to Machiavelli as a corrupt order, not because the powerful few break the rules or because a faction attempts to undermine the integrity of elections, but because the people have been “either deceived or forced into decreeing their own ruin.” Perhaps the most important part of Machiavelli’s wisdom for our own time is that republics tend to become oligarchic, giving the powerful few indirect control over government…

Much maligned as a mere tactician of power, Machiavelli was in fact a philosopher of the people. His critique of oligarchic domination remains essential today: “Our Machiavellian Moment.”

* Niccolò Machiavelli

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As we ponder populism, we might recall that it was on this date in 1776 that Thomas Paine first published (albeit anonymously) his pamphlet “Common Sense.”  A scathing attack on “tyrant” King George III’s reign over the colonies and a call for complete independence, “Common Sense” advocated immediate action.  America, Paine argued, had a moral obligation to reject monarchy and declare independence.  An instant bestseller in both the colonies and Britain (over 120,000 copies in just a few months), it greatly affected public sentiment at a time when the question of independence was still undecided, and helped shape the deliberations of the Continental Congress leading up to the Declaration of Independence.

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