Posts

Waking up from the Brexit nightmare

15-11-18

Dear Partners in thought,

While being-non British and would have been Remainer, it is a deeply heart-breaking experience to see the unfolding of the current cabinet and parliamentary process regarding the British approval of the Brexit deal with the EU. It looks like straight from a parallel world with a “dead on arrival” deal and its cohort of micro-tragedies put forward that gets support neither from the Leavers nor from the Brexiters. It is hard not to admire the Churchillian resilience of the PM even if it is clear the deal would leave the UK leaving the EU worse off and the odds are that she will not politically survive, leaving many new avenues ranging from a leadership contest to a general election. It is clear that the hyper-sensitive rationale for a second referendum that would ask the right questions and be based on facts rather than promises is strengthened whatever the strong emotions at stake. The democratic will of the people should indeed be respected although as much as their right to review two and half years later such a controversial move that will impact generations to come, at a time when facts are better known and when the mood of the British public has indeed changed. As a staunch promoter of the EU and regardless of any final outcome, I can only wish my friends in Britain, a country that I know and admire, to find the right and peaceful way forward for them as we also need to work well together… as Europeans.
 
Warmest regards,
 
Serge
 
 
Serge Desprat – 15th November, 2018 (Prague)
 
 
 
 
 

Patriotism vs. nationalism – Why words matter

13-11-18

Dear Partners in thought,
h
While celebrating the end of WW1 in Paris among the longest list of heads of states, President Macron stressed a key note befitting the moment and our times. He stressed patriotism vs. nationalism making words matter as they should and giving the defenders of Western liberal values a crucial tool in the fight against the rise of populism. Words indeed matter. Patriotism is a positive and natural feeling reflecting the pride and love for one’s country’s history, culture and, yes, identity. Nationalism, especially in our times, while including some attributes of patriotism in the eyes of many of today’s nationalists and populists, also conveys feelings of isolationism, retranchement and xenophobia, all ingredients that do not bode well for any future and subtract rather than add to the “wealth of nations”.
 
Walter Russell Mead, the famed American historian just pointed out in the WSJ that patriotism was a Western European universal concept and that nationalism was a positive force at the end of WW1 in the creation of new countries in the midst of the falls of empires across Central & Eastern Europe. This is right and the Poles, Czechoslovaks and Lithuanians do remember. However it was 1918 and not 2018. Then nationalistic passions were necessary to reach a hard fought nationhood and had been much alive across the region as Alphonse Mucha’s beautiful Slav Epic shows us (on display in Prague’s City Hall until early 2019). Today nationalism is a force not for creating national communities but used very often for domestic political and electoral agendas and also bent on breaking the European project that has made European nations grow in peace and prosper, gradually together, as a community of partners since the 1950s. Nationalism today is also a phenomenon (some would also say a tool) much liked by certain countries that do not want to see Europe acting as a bloc while we live in an age of blocs while remaining patriots and proud of our own specific roots and history.
 
Macron struck the right tone, reminding us that words matter. He also gave a new and much revamped life to this old fashioned, often derided notion of patriotism.
 
We should all be patriots focused on the core values that made our nations if we are to succeed together and find a way to counter the easy rise of an ill-thought nationalism and its populist cousin.
 
Best regards,
 
Serge Desprat
 
 
PS: I think the dichotomy between patriotism vs. nationalism is also very apt for the “indispensable country” we all want to see back.

 

Serge Desprat- 14th November, 2018 (Prague)

The seven take aways from the midterms

8-11-18

Dear Partners in thought,

If I may I would suggest seven take aways for the recent midterms as follows:

1. Many Americans still support DT, definitely among GOP and conservative voters and thus vote GOP for reasons of their own very often not especially liking the man but supporting his policies and not usually seeing their impact on the world (and sadly onto the US and them)

2. DT and the GOP retain control of most red states but waver in some states which propelled DT to the White House. Not a good sign for DT

3. DT and the GOP are losing the affluent suburbs and gradually the women’s vote nation-wide. Not a good sign for DT

4. The GOP only kept control of and increased their seats in the Senate because of the particular seats on offer (the one third of the Senate to be renewed) these midterms. Bad timing if there was ever one

5. Although the Dems scored a major House victory that was not a foregone conclusion together with seizing a few Governorships, theirs was weakened by “symbolic” defeats especially with the short one in Florida (Governorship) but also in Texas (even if O’Rourke did far better than ever expected, all the more as it seemed he could win early on as votes were counted, creating a hope that was that night, quite late, shattered) and the (still?) unsettled status of the top Georgia race (Governorship)    

6. The DT press conference yesterday, putting aside any peculiar style, was Orwellian in nature where “defeat” was simply “victory” in what is becoming a gradually accepted norm

7. While DT is actually heavily weakened on a nationwide basis (excellent side analysis of Harvard Law’s Laurence Tribe today), a sure way for him is to benefit from a radicalised Democratic Party and House that would focus on investigations and impeachment proceedings over the next two years which may likely bring the political process to a standstill, allowing DT to do more finger pointing come 2020. And potentially win.

I know I am partial but I encourage you to read the excellent analysis of Ed Luce and his Insights in the FT on what is happening and may happen in American politics and after the midterms. Great insights and style indeed.


Warmest regards,

Serge    

Serge Desprat- 8th November, 2018 (Prague)

The Corrosion of Conservatism – Max Boot

3-11-18

Dear Partners in thought,

I would like to tell you about “The Corrosion of Conservatism” (Why I left the Right), a book by Max Boot that is quite topical in this mid-term season in America though also stands out given his very author. As we are indeed in a key election week, I will also humbly ask two main questions that I find are critical to the soundness of the American democracy going forward.

The “Corrosion of Conservatism” is a book about a passionate personal and political journey deeply into and away from American conservatism while being flavored by what we knew to be “the American dream”. Max Boot was born in Russia in a Jewish family which emigrated to America when he was six during the start of the Carter Administration. He went to Berkeley, then a hotbed of radicalism built during the late sixties, and on to Yale where he started to mix with the Conservative world ranging from National Review’s WF Buckley Jr. (the pope of modern American conservatism, author of the famed “God and Man at Yale” and the key architect of the Reagan revolution) – of note MB’s own father introduced him to National Review – to the various leaders and donors of the conservative movement and GOP. MB was very impressed by the introduction of morals into politics that was demonstrated by the drive of the likes of Democratic Senator Henry “Scoop” Jackson, the strong defence hawk of the 1970s, to exert pressure on the Soviet Union to let Russian Jews emigrate as part of benefitting from the policy of detente of those days. He grew up looking up to Ronald Regan, his true American hero (although a bit older than MB and growing up in Paris, I felt the same for Reagan with his John Wayne swagger and his resolute confrontentation of the “Evil Empire”). This moralistic approach to foreign policy that departed markedly from the realpolitiks of Henry Kissinger or Zbigniew Brzezinski was to eventually lead MB to the camp of the Neo-conservatives led by intellectuals Norman Podhoretz (Commentary) and Irving Kristol (Public Interest) and their respective sons Bill and John (who launched the Weekly Standard to which MB contributed for ten years until 2017) who “promoted” the invasion of Iraq in 2003. While a columnist for the Washington Post and a global affairs analyst for CNN, MB today is the Jeane J. Kirkpatrick Senior Fellow in National Security Studies at the New York-based Council on Foreign Relations where he has focused on military history, his life passion as demonstrated by his many books on guerilla and small wars (read “The Road Not Taken” the biography of Edward Lansdale and inner tragedy of the Vietnam war). MB’s current book, which is very rich, reflecting the breadth of intellect and knowledge of his author, is about his detailed journey into this American conservative world and how it left him rather than he left it (to paraphrase Reagan about his earlier democratic affiliation) with the unlikely but staggering ascent of DT to the White House.

MB decided to change its voter registration from Republican to Independent the “morning after” (the election of DT). He never saw American conservatism as “blood and soil” and “chauvinistic and pessimistic” as he would see it in Europe but as “optimistic and inclusive”. Conservatism to MB was prudent and incremental policy-making based on empirical study; support of American global leadership and American allies; a strong defense and a willingness to oppose the enemies of freedom; respect for character, community, personal values and family; limited government and fiscal prudence; freedom of opportunity rather than equality of outcome; a social safety net big enough to help the neediest but small enough to avoid stifling individual initiative, enterprise and social mobility; individual liberty to the greatest extent as possible consistent with public safety; freedom of speech and of the press; immigration and assimilation, and colorblindness and racial integration. He believed (and still does) in two documents: The Declaration of Independence and the Constitution as both defining what it is to be an American citizen with rights and duties. His book is a story of first love, marriage, growing disenchantment and eventually a heartbreaking divorce prompted by DT’s highjacking of the GOP. Today MB is a man without a party but he remains committed to conservative principles deeply regretting that his former party and its elected officials sold these out in order to stay in office however the short term-minded objective and the long-lasting damaging effect on American politics and society…and the world.

MB wants us to understand his journey as a a conservative so we get a full picture. He started his real career journalistic career at The Wall Street Journal for the editorial page under the leadership of Bob Bartley, working for a number of leading writers to finally become a leader himself at the young age of 28. He wrote a book on the trial lawyers taking a well known Texan lawyer as target in a prelude to the populist revolt that was first seen in small town America’s large jury awards against large out-of-state bi-coastal corporations (a book he was not happy about retrospectively). He finished the first draft of his book on America’ small wars on 9- 11, the latter which he witnessed first hand downtown Manhattan. He was an unabashed supporter of Iraq II in 2003 to punish and remove from power Saddam Hussein and bring in democracy (he makes the point that the Neo-conservatives that were fingered as the leaders of the Iraqi adventure were in fact following Cheney, Rice, Rumsfeld and all…). Today he regrets his move fifteen years too late as he admits and would no longer commit troops and risk lives simply to promote democracy in an Iraqi-like scenario. In 2008 he was part of the John McCain team and was deeply impressed by the American hero who often knew more about foreign policy than his foreign policy advisers but got undone largely by his VP choice, his relative lack of economic matters mastery and the beginning of the financial crisis. In 2012, he advised Mitt Romney, “less at home in foreign affairs but a very decent man“. He was underwhelmed with Obama who he thought withdrew too early from Iraq in 2011 and failed to stop what his friend David Petraeus called the Syrian Chernobyl. In 2016 he did not back Jeb Bush, finding him not conservative enough (wishing today he could have backed him) and supported Marco Rubio whom he thought would lose to a Jeb Bush. He still wonders how he could have overestimated his fellow Republicans and not see DT coming up from behind to gradually seize the nomination, the presidency and then the GOP.

MB goes through the last GOP primary reminding us of all the tenors of the Republican party falling down one after the other, Ted Cruz being the last one to go in spite of a victory in Texas. He goes through all the rejections and the gradual changes of mind of all the Republican leaders who found redeeming features and then strong qualities to the man they clearly despised only a few months or weeks before, presaging a trend that would be found throughout most if not all the Republican Party and conservative landscape. Supporting “the nominee” took precedence on anything including values among politicians and the leading conservative media commentators such as the cast of Fox & Friends. The number of conservatives that refused to back DT, becoming the Never-Trumpers being far and few, with only two leading GOP politicians refusing to endorse, Mitt Romney and Jeb Bush. MB at this point saw the Republican Party as “dead” and the anti-Trump holdouts as “the real Republican party in exile” hoping “they could return from the wilderness after November”. MB started losing friends with one of his conservative road travellers feeling he was getting angry when talking about Trump, so too emotional. MB goes through a very detailed assessment of both what is wrong with DT and why his positions and style are anything but what should represent conservatism and its followers. He points out the incredible high wire act of the Christian evangelicals (amazingly including the ladies) who strongly back DT in spite of his behaviour with porn stars, Playmates and statements about how “handling” women as if these ranked low and were just “private matters” in relation to ensuring the Supreme Court is secured for thirty years or the U.S. embassy shifted to Jerusalem. The Republican Party and its electorate gives gradually reason to DT boasting that he could kill someone in the middle of Fifth Avenue while not losing any backing.

Putting aside the relish of the Republican and conservative base to “fight back” the liberals and what they stood for like say the hard to stand PC-ness (a key positive, long overdue for them), MB sees the case for DT from the Republican Party and base and its couter-arguments as follows:

  • A strong economy: All GOP backers and Trump admirers believe that DT created the strong economy they enjoy, with record low unemployment, low interest rates and a great (until October 2018) bull market. They actually forgive DT his abhorrent personality and poor style as he has presided over what they perceive to be a strong economic performance, which is all that matters to many of them. In fact the US economic performance under DT was largely inherited as is often the case, with job creation and the rise of the Dow Jones being stronger under Obama. Measured by the Brookings Institution against five other presidents who inherited a growing economy since 1960 DT’s record is tied for last place lagging even behind Jimmy Carter.

 

  • The defeat of ISIS: While DT claims that he defeated ISIS, the drive to do so was started by Obama and he almost pulled out of Syria 2,000 US troops that could have jeopardised the gains against ISIS while opening eastern Syrian to Iranian expansion.

 

  • The pullout from treaties like the Paris Climate Accord and the Iran Nuclear Deal: DT is in denial about global warming and pulled out of a treaty with no mandated job-killing regulations while he pulled out of an imperfect nuclear treaty with Iran which the latter was respecting and his own secretary of state and the main US allies wanted the US to keep.

 

  • The move of the US embassy to Jerusalem: DT focused on implementing a symbolic promise made and time and time forgotten by every president but failed far more strategically to strengthen Israel’s security by limiting Iran’s advance in Syria.

 

  • The summit with Kim Jong Un: The meeting between the two leaders was a first and a good step towards working on a peaceful resolution of peninsular issues after very bellicose rhethorics but was also deemed a win for Kim without having produced tangible commitments for the North Korean regime to adhere to.

 

  • The passage of a massive tax bill in his first year of office. Clearly a very well received move even if the “top earners” were the main and some would say only beneficiaries. And a clear break in Republican fiscal orthodoxy so much heralded during the Obama times and which also gave rise to a now forgotten Tea Party.

 

  • The selection of conservative candidates for the Supreme Court: This matter was key to many if not most of DT’s supporters who also forgave him for “the rest” believing that the Court was a guarantor that their values would be upheld in American society for many years to come, all the more by picking relatively young conservative Supreme Court justice candidates.

As seen this past week in a New York Times survey, it would appear that Republican and conservative voters are markedly more supportive of DT than they are of the Republican party which stresses the magnitude of DT’s takeover and the rationale of its elected officials in backing him fully in order to stay relevant.

MB actually recognises a few positive developments such for him as the embassy move to Jerusalem, the intensification of efforts against ISIS, the early sanctions against North Korea and the cut of corporate tax rate to bring the US tax code in line with international standards. The list short is rather short.

MB finds several areas where DT has been willingly or unwillingly destructive as follows (a close read of the argumentation is certainly useful to get a full picture):

  • Racism and race relations in America
  • Nativism and the opposition to immigration (arguably of the illegal kind)
  • Collusion and all matters related to the subject of the “Russian meddling”
  • The Rule of Law and the relationship between the executive and judicial branches
  • “Fake News” and the relationship between the executive/the country and free press
  • Ethics and the lack of them by some administration officials
  • Fiscal Irresponsibility and the gifts paid for by future generations
  • The End of the Pax Americana and the void created by a leaderless world

I would add a key feature that can be found across the Trumpist offering which is the lowering or degradation of the political discourse with consequences for and on all party sides together with an indirect or subliminal incitation to societal violence and hatred permeating to the level of individual inter-actions. America has become cruder and incivility is more societally acceptable in the Trump era particularly among members of the younger generations as demonstrated by recent surveys.

Interestingly MB, in a quest for “who he is” after all, listed all the key features that define him politically as follows:

  • Socially liberal: Pro LGTBQ and pro-choice. Not religious but respectful of those who are as long as they don’t tread on others’ individual rights.
  • Fiscally conservative: Deficit reducer and controller of entitlement spending without shredding the safety net.
  • Pro-free markets and the welfare state: the latter (he sees as a conservative, Bismarkian, institution) ensuring the success of the former with government working on its imperfections.
  • Pro-free trade: Concluding more treaties as they have ensured America’s and the world’s prosperity, all without forgetting those that globalisation have left behind via government aid and related programs so they also don’t support populist policies that end up harming America and the world.
  • Pro-environment: Recognising the obvious climate change and not opening indiscriminately federal lands to strip mining and oil digging.
  • Pro-gun control: Ensuring extensive testing and safety training is performed on civilians purchasing military-grade weapons like in other democracies
  • Pro-immigration: Immigrants, like himself, being a source of America’s greatness; ensuring a path to citizenship to millions of undocumented immigrants and increasing legal immigration to address a shortage of native- born workers and skills all with proper screening to avoid a popular backlash while making the case to white America that changing demography is no threat to their wellbeing.
  • Pro-free speech: However opposed to identity politics and rhetorics of both minority groups and the declining white majority. Believing in the melting pot, integration and colour blindness while keeping working on erasing the historical stain of racism.
  • Strong on defence: Maintaining a capable military to cope with multiple enemies and rivals (like Russia and China, but also rogue states and non- state terrorist actors); maintaining a presence in Europe, the Middle East and Asia to keep peace and deter aggressors (all with the hard lessons from Iraq learned by this chastened hawk).
  • Clear internationalist: Believing in America’s self-interest in promoting and defending freedom and a rules-based international order as performed since 1942 while standing by allies, especially the democratic ones. Rejecting unworkable isolationism in today’s interconnected world.

The first reaction when looking at this list is that DT and his administration do not tick many boxes, at least in their entirety.

Today MB feels homeless from a political party standpoint as no American party reflects this compendium of convictions. Looking back at American history and remembering what Arthur Schlesinger Jr. in 1949 called “the vital center”, MB, having thought of himself for years as a “movement conservative” realizes he is actually a “Rockefeller Republican” even if “Eisenhower Republican” seems more apt for him due to the impressive and competent traits of the man. Ironically, MB fels that historical conservative figures like Barry Goldwater and certainly Ronald Reagan would be seen as RINOs by the current GOP and its backers (Republicans In Names Only).

Strangely enough I relate to that “Rockefeller Republican” appellation which I have used many times for myself over the last two years, trying to find a family for those center right individuals, be they America nor not, who would adhere to most of the features that MB listed. I feel more historically from the center, even if from its right, than I would have thought MB was from, probably due to his Iraq II war drive at one point. His journey seems a real one and not just linked to the fact that the Republican party “left him“ as if there was a degree of humanity and reality that had crept in while reflecting upon his times and their changes. I would adhere to most if not all of the features listed by MB even if some like pro-immigration is a very sensitive one. His take, doubtless flavored by his own, highly positive, experience, is not easy given its magnitude and the times and looks more like an ideal that, everything being equal, America and the Western world could follow. However identity matters and a certain balance in policies should be respected for the natives in their respective countries and indeed nations to feel still at home – echoing, Michel Rocard, a former French Prime Minister (whom inspired a very young Macron): “France (but one can replace it for America) cannot accept/integrate all the misery of the world”, a quote that is undeniably heavy to bear and express but is also dispassionately realistic.

One feels that MB wants for the Democrats to win so the GOP that lost it ways can be reborn even if he does not believe in the Democratic party which he sees having gone way too leftwards – my very concern as well (starting with a “differentiated“ and campus-popular Bernie Sanders in 2016, but now in reaction to the times reflecting its whole leadership and as vividly seen in by-elections in the Northeast) – as the GOP has gone far-right populist, leaving many like MB (and I, should I be American) disenfranchised. MB does not believe that there could be a third party in America today as the libertarians could attest, except perhaps in California where the GOP as we know it is on an extinction path. One could think that a third party needs a man (or a woman) charismatic enough and with fresh and appealing ideas – like an American Macron – to upset the status quo though MB is probably right that the two parties, whatever shape they are in today are too entrenched at the local level for a third party to emerge. It is more likely that a politician from the past will emerge as the one to have a go at ending the Trump era in 2020. Some experts say Elizabeth Warren (surprisingly given her radicality on the spectrum). Others say Biden or even Kerry (I see a one term Biden a very practical and centrist option). Others say (like me too) Romney who is not simply going to the Senate to replace Orrin Hatch but wisely keeps a low profile for now. Wild card thinkers mention newcomer Texan “Beto” O’Rourke who is now facing Ted Cruz in Texas but may be too Bob Kennedy-esque for our times. What is clear is that America needs a candidate that can project the features that MB listed for his own beliefs and bring back to us the America we and the world need. The road is not too long but will be tough and starts on Tuesday.

Reading MB and having witnessed the last two years as an “engaged observer” as philosopher Raymond Aron would have put it (le spectateur engagé) one cannot not think about the way executive and legislative leaderships are chosen in America in the mid-2010s on the basis the Founding Fathers devised 250 years ago. And then they expressly did so (with their successors refining the process) in order to preserve America from the very situation it finds itself in. While taking the risk of being unwittingly iconolistic, I will leave you with two (or three) thoughts to consider:

  1. How is it possible in 2018 for a leading, modern, world democracy to elect as the leader of its executive branch someone who gathered nearly three million less votes nationwide than its opponent simply as he would have had a lead of 80,000 votes that let him garner the “delegates” in three states? (It was odd that no public debate really took place post-November 2016 as if the topic was culturally off limits).
  2. How is it possible for all the 50 states, given the huge disparities in population sizes at play, to send two senators each to the US Senate, a majority of whom will decide inter alia via the Supreme Court justice confirmation process on how America should eventually “live”? (Would the House not be enough to ensure “smaller states” and their citizens be properly represented? Are state rights more important than democracy in 2018 in America, 153 years after Appomatox?)
  3. A subsidiary question would be why there is no mandatory retirement age for Supreme Court Justices simply to ensure that they can “also” fully relate to societal developments and represent the very citizens, especially the younger ones, they should serve.

It is hard not to find that there is a democratic deficit in American politics today where majorities are not properly reflected in election results. I realize that it would be anathema for many, including those who would benefit from it, to alter the enshrined system for its own good if only as it might be an unraveling start of a system that worked well “in the past” (I heard the words “secession risk” in relation to my second question last week, which I find highly unlikely for sheer practical reasons). Would America as a nation (I know I am being an Hamiltonian Federalist here) not benefit from an electoral system that is found in modern democracies? And work hard and decisively to understand the voters of small states, making sure it corrects the imperfections of our modern, globalized, world? I wonder what Max Boot and a contemporary visiting Tocqueville would think.

Warmest regards,

Serge

Serge Desprat- 3rd November, 2018 (Prague)

Rich Russians – Elizabeth Schimpfoessl

19-9-18

Dear Partners in thought,

While I believe that it is right today to defend the Western liberal values, very much involving capitalism and free markets, also the big winners of the Cold War and the foundations for a New World in the 1990s, we should recognise that this very capitalism, if unchecked, may create aberrations that go against these very Western liberal values and may with time threaten their very existence. Liberalism and capitalism should go hand in hand. Sometimes they don’t, especially in chaotic environments like in the immediate post-soviet Russia when all had to be rewritten and rebuilt in no time with no local blueprint and where the fittest prevailed as they boldly took advantage of unusual situations and were just seen as a mere necessary evil in a vastly wider game.

This week I would like to talk to you about the rich – the uber-rich and more precisely of the Russian kind portrayed in the great book “Rich Russians” by Elizabeth Schimpfoessl, an Austrian author with great literary skills who wrote it after years of research as part of a post- doctorate fellowship at University College London or UCL, one of the great English universities today. She has taken a very academic stance for a research relying much on the Pierre Bourdieu and Max Weber of the discipline which makes her book very scientific in nature if only a tad pedantic at times.

I discovered the book thanks to the recent review by Max Seddon, the FT’s correspondant in Moscow (Well done and thanks, Max). I will borrow the opening joke from Max’s review that tells about two “New Russians” (as the rich were often called by us in the West) who meet and see they are wearing the same designed tie. “Ah” one brags, “I paid USD 500 for it”. The other guffaws: You fool! I paid USD 1000!” This was a joke depicting the oligarchs born in the nineties and who according to ES are now museum pieces even if we have other funny stories along the same lines. On the low scale of the “New Russian” stories and only a few years back the food and drinks manager of the most elite hotel in Prague was lamenting his cognac bottles were not selling at all. He then quadrupled the price with Russian guests suddenly not stopping buying them within a few days until they were none.

The book deals with the context for the rise of Russia’s upper class, then looks into a shift from crude consumption (which is yet a stereotype many in the West still have), the consolidation of social position and self-legitimation process (also for their children which deals with the passing of the wealth down generations) like what the bourgeoisie did in the West. ES narrates the elite’s path to riches and the quest to seek distinction in terms of family history and lifestyles. The middle section deals with legitimacy that demands the practice of philanthropy and yet the justification of a pronounced social inequality and patriarchic norms. ES finally looks into the future of the Russian bourgeoisie looking at the transfer of wealth to the next generation all against a backdrop of tangled relationships with the West which is an issue as most New Russians live in the West and London(grad) especially (the Salisbury poisoning event being the latest issue that this Russian group had to deal with due to their choice to live in London). ES has interviewed about 80 so-called oligarchs for her book which makes for a very interesting journey into the life of those powerful men (they are all men) we know and some other billionaires who escaped the limelight. There are indeed stories about colourful mavericks and the associated long yachts, latest fast cars and uber-flats in London, villas in Saint-Tropez and same evening “in and out” flights to and from Chamonix for “memorable” parties.

“Many of those leading the Soviet system vanished while strangely those just below, far less visible publicly but very connected and agile, were very successful in taking over”

Those new Russians came into extraordinary wealth at a time of unprecedented economic and social changes previously led by the collapse of the Soviet Union, an event that we just barely came to understand in terms of magnitude and ramifications. The loss of empire led to Putin for restoration purposes but before we had both a land of chaos presided by Yeltsin and a land of unheard opportunity for riches created by a seismic power shift and related void. I lived through those times while working at the EBRD in London and covering Central & Eastern Europe from 1993 to 1998, including Russia at a time when jokingly the bank could have been called The Russian Bank for Reconstruction and Development so the needs were great and our full funding could have been absorbed by this one country even if it was a smaller version of its former self. It is clear that the most massive wealth transfer in history (was it a theft?) that created the “Rich Russians” was not a market event but one of grab with political backing, not only in Russia but in many countries in the region through the aggregation of privatisation coupons and other means. Did we and the West not facilitate this unprecedented state of affairs simply so we could stabilise new Russia and make it a Western market economy where all – and especially us – would benefit? (incidentally without paying attention to history and the basic need for national respect)

The collapse of the Soviet Union and the introduction of market reforms were extreme events in their harshness for the Russians and their living standards, something which was never fully grasped in the West so much we focused on the victory of democratic ideals and having vainquished the arch-enemy. Within three years, the “poor Russians” tripled in population with many in the Soviet intelligentsia being part of this expanding segment. Emigration soared. Male life expectancy went down to 57. Bubonic plague reappeared. Many of those leading the Soviet system vanished while strangely those just below, far less visible publicly but very connected and agile, were very successful in taking over. At the same time, “New Russians” (novye Russkie) emerged, accumulating great wealth and looking like the old caricature of the tasteless tycoon capitalists who throve in a “dog-eat-dog world, celebrating a new hedonism”. It was said that some entered politics, like in the reelection of President Yeltsin in 1996, primarily to protect their young and massive wealth (incidentally, of the six only one survived the new, cleansing Putin Siloviki – ex-security/military – leadership era that was fuelled by the oil boom). And the West helped (or did not oppose) that oligarchic drive as it could see it as a lesser evil to keep Russia from losing our recently acquired ways, not that it would have been a better option then. Today Putin has put the oligarchs in check lest they wish to suffer a dire fate and they do not hold any political power though need to support the regime and at times very personally suffer the sanctions post-Crimea annexion and Ukraine entanglement.

In 2013, post-financial crisis and as the oil slump hit, Russia’s wealth inequality overtook all the emerging markets in the world including Brazil, India, Indonesia or South Africa with Credit Suisse declaring it in its famed Wealth Management Report the country with the highest level of inequality in the world apart from some Caribbean nattions with resident billionaires. In 2014, Credit Suisse contemplated inventing a separate category for Russia so extreme had become the wealth inequality. Within two decades Russia had moved from being a country with relative equality to one where inequality had become far starker in 2017 than during the times of the Czars according to former FT Moscow correspondant and now Canadian Foreign Minister Chrystia Freeland. And in spite of this President Putin enjoyed an approval rating above 90% which was only recently dampened at 70% (which leader – think Macron – would not love this slump?) as he asked Russians to work longer to benefit from their public pensions in a country where age expectancy is still not attractive by Western standards.

ES dwells a lot on the fact that the New Russians in the 1990s did not inherit their wealth from a bourgeoisie class but are nevertheless in the process of becoming one trying to shed away the most abrupt and crass features of their image in the 1990s and 2000s to gentrify themselves. This is a process that can remind us of what America must have gone through with the famed robber barons of the mid-to-late 19th century who likely were close to our New Russians in terms of business practices, manners and ostentation – even if they were builders and developers creating the American Century more than mere asset strippers taking advantage of Russia’s rich natural resources. One notable common feature of power status was the “possession” and display at their arm of beautiful women (a hard statement to make today but one that sociologists will confirm). Those who became rich were in part the managers of the assets they privatised for themselves, this encouraged by the Russian reformers like Chubais and Gaidar around Yeltsin who focused merely on the macro-picture not caring (it would seem) for the emergence of a new class of super-rich privatisers and buccaneers. Many of these New Russians were also most often linked to the Intelligentsia (the thinkers) who may not have been top Communist Party members but were scientists or academics who also had worked at some point to enhance the power of the Soviet Union in areas deemed strategic to the leadership of the days. They were too young during the Soviet days to have been in senior positions in a regime that also naturally encouraged gerontocracy. Besides that, many were Jewish as can be seen from the roster of top oligarchs in the 1990s and even now as if they were barred from political leadership positions they were wanted as economic and scientific managers. The Intelligentsia was to them an alternative to an aristocratic ancestry and accelerated their journey to eventual “bourgeoisification” in a new Russia that was redefining the rules of the game as it went and by the economic sword.

ES believes that today the new Russian bourgeoisie wishes to be convinced that they deserve their position because of who they are and their superior qualities, the approval of their bourgeois peers being far more important than gaining legitimacy by society at large, which is a task that lies ahead for the second generation who is gradually coming of age. ES feels a move from crude ostentation to greater etiquette, a stronger family orientation, and some degree of modesty, philanthropy and patriotism (“they wish to collect paintings and not yachts” even if there was Viktor Vekselberg and his Fabergé eggs in the 1990s, which made him a stand out) which are seen as key also as Russia moves gradually to a post-Putin era.

I dedicate this note to my friend Dmitri, who has seen both “worlds” up close and is one of the few official and efficient, not to say low key, bridges between the West (particularly the U.S.) and Russia today in what is a challenging time for all of us. Men like him, who understand what motivates the Russian as well as the Western leaderships contribute to ensuring we talk and avoid escalation, working in the shadows, modestly and expertly. Bolchoi spasiba!

Warmest regards,

Serge

 

Serge Desprat- 19th September, 2018 (Prague)

 

No Better Friend, No Worse Enemy – Jim Proser

15-9-18

Dear Partners in thought,

I would like to tell you about a modest and highly able man who stands out – literally – as the senior beacon of wisdom in the Trump Administration and the reason why we probably can also sleep a bit better at night. I would like to tell you about James Mattis, the U.S. Marine Corps General who presides over the Department of Defense since January 2017. “No better friend, no worse enemy” is a book by author Jim Proser, who is a familiar fixture of the American military having written in 2011 “I am staying with my boys” which is still on the Marine Corps’s Commandant Professional Reading List.

JM conveys a mix of seriousness (easily gained from looking at him; I would not want to cross that man), balance and resolve as demonstrated by his line to the enemy in the Ambar province of Iraq a few years ago: “I come in peace. I did not bring artillery. But I am pleading with you, with tears in my eyes. Fuck with me and I will kill you all”.

From day one of his nomination, I only heard good things about Jim Mattis, including from Democratic friends who have known him personally and were despairing about Team Trump. JM was the first presidential cabinet nominee who also received unanimous bipartisan congressional support, which was an oddity amidst the hyper-partisan environment following the 2016 presidential elections. The book is about the qualities of the man behind the role and attributes such as humility, deep thoughtfulness, courage, insight, humour, fierce compassion and experience in the real trenches facing all enemies. “No better friend, no worse enemy” is not just the title of a book. It is the motto of the First U.S. Marine Corps Division drawn from the Roman general Lucius Marcellus Sulla who once said: “No friend ever served me, and no enemy ever wronged me, whom I have not repaid in full”.

Jim Mattis is a composite of George Patton and Omar Bradley, the famed warriors of the Western European front in WWII – the Yin and the Yang, the hussar and the planner. JM is seen today as the leading military commander in post-WWII together with David Petraeus, who was also once revered for his Roman classicism (down to his name) and new breed of warfare though fell from grace as he was only too human and kept showing he indeed was – in a more acceptable sense – when he joined the world of private equity as a senior adviser to KKR.

The book depicts JM’s life from his childhood in Richland in the State of Washington (his father was working as a power plant operator at the nearby top-secret Hanford nuclear facility and his mother Lucille, a homemaker as they said then had been a U.S. Army intelligence officer, thus providing a background from which to discover a path). JM graduated from high school in 1968, which was an epic time for the young and restless generation (on the Berkeley campus as in the Quartier Latin in Paris) and their bewildered post-WWII parents. He was also growing up in the midst of the Vietnam War when young men were drafted. His Richland friends were not war protesters and simply enjoyed the local doughnut shop, movie theatre and their Columbia High School in the usual tradition of kids there. He joined the ROTC (or Reserve Officer Training Corps) when he attended Central Washington University while not thinking about joining the military at the time. As a sophomore (second year) he walked into a Marine Corps recruitment office (like in the movies) and signed up for the Marines’ Platoon Leaders Course at the same time as the Tet offensive in Vietnam that killed 10,000 American soldiers and Marines. He decides to pursue his higher education through the Corps, now wearing the Prussian “high and tight” haircut marking him as one of “the few good men” and at a time when “baby killers” are screamed throughout the U.S. including at returning soldiers at airports. He gains a Master’s degree in History from the Marine Corps Command and Staff College, especially enjoying the readings of Sun Tzu. While he will not fight in Vietnam, he will be in the military after the 1975 fall of Saigon and feels the trauma of defeat which was not an American experience before Vietnam. In 1978, Captain JM takes command of the Third Marine Battalion of Kilo Company of the Third Marine Division working under men who had fought in Vietnam. He leaves the classroom for good and starts “deploying” mostly in the Far East staying with troops on bases in Asian ally countries in the midst of the Cold War. He is part of the men mobilised by President Carter in response to the Iranian uprising and Teheran Embassy seizure but the forces never go into action following the loss of the two helicopters in a failed Operation Eagle Claw rescue mission that brings down the morale of the troops.

Mattis would never marry but is known to be a “Ladies’ gentleman” (I am still doing research on the meaning of that). There was a girl, Alice, whom he met in Hawaii during a deployment, who said after a nice romance that she would marry him if he left the Corps, not feeling she could bear the month-long deployment of her young Marine officer husband. JM started going through resignation procedures though his fellow Marines stopped him, lobbying Alice to change her mind as his future was deemed by them too bright. Alice agreed and a wedding date was set. After another deployment, JM comes back and, while working on catering arrangements, receives the news that his bride-to-be has reconsidered, not wanting to go through the waiting game of a Marine’s wife’s life. In July 1881, JM is promoted to Major and goes to the Pacific Northwest. He will never marry anyone but the Corps.

The book is not for everybody as it is for a great part quite military-flavoured. The book navigates back and forth through his life and the Operation Iraqi Freedom showing us the extricate details – at times hour by hour – of how the Marines took Baghdad and what JM did during the long (though they did not know it then) occupation phase. If we remember that early military phase of the war back in 2003 there was that feeling of a walk in the park, enhanced by the Hollywood-like pioneering (and brave) embedded media reporting as if part of a TV reality show. It was of course not a walk in the park but the swift result of excruciating preparation and faultless delivery largely due to the leadership of men like JM (one would have liked that this glorious episode of U.S. military history had stopped there and that the occupation morass been avoided). The book, due to its detailed description about military action may not be for everybody without an interest for the matter though it is also the best way to get to know JM through what he was actually doing until 2013 when he retired from active duty. He was involved in the two Iraq wars – as a Lieutenant Colonel in 1990 and a multiply starred general in 2003 and beyond. Back from Iraq I he worked as Marine Recruiting Station in Portland not that far from his childhood state, “recalling the raucous pub crawls through ports of calls with the 3/3 with fondness and amusement” (somehow not what you think that JM would do). He enrols in the Marine Corps Command and Staff College moving to Quantico, Virginia (also home to the FBI training grounds), writing a dissertation on “Amphibious Raids: An Historical Imperative for Today’s Marines” both pointing to America’s growing confidence in President Reagan and arguing that Marines should expand their historical role as warriors from the sea, a tenet that is yet once tested by Saddam Hussein’s invasion of Kuwait in August 1990 and the need to deploy massive American military assets to a new theatre that will mark the country forever. We go through the whole Iraqi campaign led by the memorable and colourful duet of Generals Norman “Storming” Schwarzkopf and Colin Powell under the prism of Task Force Ripper with yet again an hour by hour account of the deployment of the American and allied invasion force. JM enjoys a hero’s welcome when he returns, as all American soldiers do while George HW Bush basks in the highest, never equalled, presidential poll rating in the history of poll ratings (Who would have thought that an obscure Arkansan governor from the opposite party would unseat him a few months later?).

We also learn interesting facts in the book such as that Osama bin Laden had offered King Fahd to help push Saddam out of Kuwait with his 100,000 devout Muslim fighters (pre-Al Qaeda, even if the number looks huge) but was rejected in favour of the Americans by the Saudi King, this leading ObL to never forgive his king and eventually side with the defiant Iraqi strongman and visionary of an Islamic caliphate, devoting his life to Jihad with the consequences we know. After Iraq 1, Lieutenant Colonel JM goes in May 1991 back to Quantico to be the assistant to the head of the Marine Corps Enlisted Assignment Branch, which we learn is the nerve center of the Marine Corps, “where the big decisions are made in relation to recruiting”, which he will lead within a year. We go through the period marked by the 1993 bombing of the WTC, while JM graduates from the War College. We then go through the gradual increase in terrorist attacks such as the June 1996 Al Khobar bombing in Saudi Arabia marking the beginning of such attacks that will see the US embassy in Kenya and the USS Cole being targeted, all these events leading to 9-11. We know the following stories centred first on Afghanistan right after 9-11 and in March 2003 with operation Iraqi Freedom which will see again the Marine Corps and JM going back to a well known theatre. These events area also described with an angle on the arduous relationship between the Department of Defense (Don Rumsfeld) and the military commanders. In 2007, JM became Commander of the U.S. Joint Forces Command and, replacing David Petraeus, Commander of the U.S. Central Command. Iraq will take the last ten years of JM until he retires in March 2013 after 41 years of service in the Marine Corps.

A few months following his retirement JM was invited by the young entrepreneurial prodigy turned infamous fraudster Elizabeth Holmes to join the supervisory board of Theranos (read my book note on the excellent “Bad Blood”), together wth former secretaries of state George Schultz and Henry Kissinger as well as former secretary of defense William Perry, former Senator Sam Nunn, former Wells Fargo CEO Richard Kovacevich and Riley Bechtel, Chairman of the Becthel engineering group. This is the dark spot for JM as if he was no longer as good outside the confines of his military environment. He retreats behind the high walls of the Hoover institution and Stanford (incidentally all the Theranos board members with a public sector background were linked with the Hoover Institution). He joins another think tank dealing with public policy and the board of General Dynamics and then the U.S. Naval Institute which look more like the right trenches for the old warrior. He keeps receiving awards (“Semper Fidelis”, also the Marines motto, from the Marine Corps University – which most of us discover the existence), honorary degrees (Doctor of Laws Degree from George Washington College), volunteers for his local food bank back in Washington state, join more boards (The Center for a New American Security, from which he will testify before the Senate’s Armed Services Committee about global challenges and security matters, warning about the growing threat in Iraq). At the Hoover Institution he takes part in a book “Blueprints for America” that is edited by his friend George Schultz and he participates in many college commencement ceremonies and the usual speaking tours. He will co-author “Warriors and Citizens: American Views of our Military”. JM is not actively involved in the 2016 presidential campaign (probably the old soldier’s duty of reserve, which is not the case with former general Mike Flynn as we remember). Late in the campaign as it seems DT might possibly win against Clinton, he gets a call from the campaign team. The rest is history and he is smoothly confirmed as Secretary of Defence. He will agree with DT that there will be no public discussions of American military plans and timetables. JM will go back to Iraq in a different capacity.

The book, while published in 2018, does not touch upon the role of JM as Secretary of Defense or his work relationship with the President. We can speculate as to why this soldier of soldiers, at the pinnacle of glory, decided to accept such a role in such an atypical Administration. It is undeniable and not partisan to recognise that JM and DT are polar opposites in style as well as substance. Did he join as he wanted to still contribute other than “speaking”? Did he join out of fulfilling a great career and finishing it with (one of) the top role(s) in his sphere of expertise? Did he join out of duty, knowing that he could temper the policies and decisions of a very “different” President (the recent books whose accounts seem very plausible given who is the individual focused on have indeed mentioned an assassination order that was ignored by JM). Maybe JM went ahead because of all these combined reasons. We will never know and it is not very important to know. The only memorable exchange we know as it was well covered was when asked by DT whether waterboarding worked, JM replied that it did not work as offering a detainee cigarettes and a beer (also, he could have added, if you wanted solid intelligence not borne out of pain and fear). What is clear to me and many others is that we can sleep better at night knowing the great military might of the U.S. is under control and that we could not have hoped for a better outcome given the odd circumstances.

I dedicate this book note to Adrian, my former “boss” at the greatest, now gone, merchant bank, and a life-long friend, who shares many of the attributes of JM even if working for DT would have been “a bridge too far” (by the way, as we talk “shock and awe” you should all read the recent “Arnheim” book by Sir Anthony Beevor, the great British military historian. I am sure JM will).

Warmest regards,

Serge


Serge Desprat- 15th September, 2018 (Prague)


God Save Texas – Lawrence Wright

5-9-18

Dear Partners in thought,

I wanted to share with you “God Save Texas”, a new book by Lawrence Wright about “A journey into the soul of the Lone Star State”. LW is the Pulitzer-winning author of “The Looming Tower” (now also a TV series on Hulu) on the US inter- intelligence agency struggle of the FBI New York Bureau’s counter-terrorism chief John O’Neil to thwart the Al Qaeda threats that ultimately led to 9-11. LW is a liberal, cosmopolitan Texan from Austin (of course from Austin) so not part of the ultra- conservative crowd which has reshaped the state from blue to hard red since the early 1980s but nevertheless a Texan first who can go across the aisles (not too deeply admittedly) and has friends everywhere, making his book fascinating. He covers the key issues that are very dear to Texas today and have a great impact on America and, as such, the world at large.

Texas is the second largest U.S. state after California, forecast to double in population by 2050 with already three of the ten most populated cities with Dallas, Houston and San Antonio (and Austin, the capital city in 11th place). Texas is a story of contrasts, always big ones in any segment of modern society. While ultra- Republican now after having been very blue (think LBJ) the state has actually turned into a “minorities” state in 2004 which some say does not bode well for the Texan GOP’s future and may explain the very systematic and intense fight of these past years with the U.S. and within the state to roll back some of the most liberal directions taken at the Federal level. It may be a rearguard battle based on demographics assuming that minorities and the urban, cosmopolitan crowd go to the poll booth going forward. While Texas is very “red” today and always compares itself with California that is very “blue” and sees it as as the antichrist (California does not compare itself to Texas, being cool about that and other things – too much surfing to do), it was not always like that when Reagan was Governor in Sacramento and Texas was still part of the LBJ legacy. Today one of the rallying cries of the Austin GOP-dominated legislature is “Don’t Californicate my Texas!” applying that motto inter alia to abortion, birth control, gun control (or laxity), transgender toilets and immigration laws and regulations.

To me Texas was America from a very young age. My father took me to the movies when I was not even 10 to see a rerun of “The Alamo”, the 1960 movie with John Wayne (Davy Crockett), Richard Widmark (Jim Bowie) and Laurence Harvey (William Barrett Travis), a movie that embodied Texas and its indomitable spirit, known even before 1836 with its “Come and get it” slogan about an old cannon that the Mexicans wanted to take from one of its old Spanish missions as a prelude to the siege of the Alamo (Ted Cruz famously wore a “Come and get it” pin during the Senate debates on the failed repeal of Obamacare). We did not know America so well in Europe but through Hollywood and John Wayne in his many Westerns we loved those Texan cowboys with their Stetsons and palominos where the land and many things had no limits as they made us dream.

Texas is about the boots, the pickup trucks, the guns, the attitude – all part of the stereotype which are also a masquerade according to LW, serving to enforce a sense of identity, but also adding to the alienation that Non-Texans often feel about the state. He quotes the New Yorker’s John Bainbridge who wrote extensively about the state in 1961 for his book, “The Super-Americans”, and how Edna Ferber’s own “Giant” novel made into a movie at that time with Rock Hudson (the super cattle rancher), James Dean (the roughneck rising to make a fortune) and Liz Taylor (the civilised Easterner who cares for the Mexican slave laborers who don’t get the profits of their work) shows the codified archetypes still colouring the perceptions of Texans by both outsiders and themselves. Bainbridge stressed the popular disdain for Texas outside the state as a combination of “hostility born of envy” and “resentment born of nostalgia” with Texas being a mirror in which Americans see themselves reflected, not life size but, as in a distorting mirror, bigger than life adding that the condescension of non-Texans toward the state echoes the traditional Old World stance toward the New. According to Bainbridge then, the faults of Texas, as recorded by most visitors, are scarcely unfamiliar for they are the same ones that Europeans have been taxing Americans with for some three hundred years: boastfulness, cultural underdevelopment, materialism, and all the rest. LW feels that what happens in Texas tends to affect disproportionally the whole nation as “while Illinois and New Jersey may be more corrupt and Kansas and Louisiana more dysfunctional, they don’t bear the responsibility of being the future like Texas”.

LW tells us about oil and Texas and more precisely the boom and bust sagas that Texans have learned to live with for years. In many ways this boom and bust culture goes with the psyche of Texas, a larger than life state that embodies so much of America, is loved and hated by Americans (non-Texans) and admired at the same time, often for the same reasons. LW starts the book about the roots of Texas which are of course found in March 1836 at the Alamo in San Antonio, which he visits with us (you can still see there a rifle owned by Davy Crockett and the eponymous knife of Jim Bowie). The Alamo is Texas and its “never surrender” attitude forged a “persona” leading to thinking big and walking tall throughout its history. A land of big dreams, a land without limits, a land of immoderation. A (larger) Republic first, then a (smaller) state but never happy being part of a larger concern. A land of small or no government. A land of the cowboys and their individualism. A land of pioneers in all fields. A land that does not care much for those who can’t hack it and is not keen on anything welfare-like. A land of winners where losers suffer. A land where God runs high at the side of the true Texans. A land of freedom at any costs.

It is a wonderfully multifaceted book so rather than going through it, something you can do at your leisure should you wish to know the Lone Star State better, I will give you some fun facts (and some not so fun). One thing to bear in mind is that LW is a liberal Texan, the type you might meet more likely in Austin though he is also broad- minded and loves Texas so his portrayal should be fine for all as its fact-based (even if today that may not be a great argument for all).

  • Singer Phil Collins, having being fascinated like me by the Alamo story as a child, became one of the most important collectors of Alamo memorabilia in the world. There are now discussions about the creation of a museum to host Collins’s collection, involving George P. Bush, former Florida Governor and Presidential candidate Jeb’s son, who is the last elected Texas Land Commissioner. As an aside, the great Texan dynasty goes on.

 

  • Legendary Sam Houston, avenger of the Alamo and unlikely crusher of Santa Anna, the Napoleon of the West, at San Jacinto was not a forgone conclusion. A Governor of Tennessee in 1827, SH was a Jacksonian populist and a rising star with hopes for the White House. He ran into “problems” (that are still not very clear) when his wife of 19 (16 years younger than him) left him 11 weeks after their wedding, making him resign citing “sudden calamities”. He fled to live with the Cherokees (who called him “Big Drunk”), became a Cherokee citizen and took a native wife. In 1832, trying to find a way out and forward in an aimless life, he took the command of a rebel mob and headed for the Mexican colony of Texas in search for new adventures and meeting his destiny.

 

  • Later on, after The Alamo, Goliad and the 18 minute blitzkrieg at San Jacinto (the Lone Star flag of Texas is said to have been born of a painting of Santa Anna’s surrender to SH that supposedly depicted the scene at San Jacinto), SH became the first President of the Republic of Texas (apparently, though it may be a legend, Santa Anna was too busy trying to seduce Emily Morgan, a “Texian” serving girl that he could not rise up to the other occasion). SH was twice elected President and after Texas entered the Union in December 1845, he was one of the two U.S. senators of Texas, siding with the Union as the new Governor when Texas joined the confederacy in 1861, a fact that is rarely mentioned, leading to his eviction.

 

  • Texas was in true tradition a provider of the fiercest warriors for the Confederacy during the Civil War of 1861-65. John Bell Hood’s Texas Brigade was one of the most valiant units in Robert E. Lee’s army. Out of its 4,400 men in the brigade, only 600 were left standing after Appomattox in April 1865. Terry’s Texas Rangers, a corps that would gain fame later on and still operates, were the shock troop at the battle of Shiloh and other key engagements. Confederate monuments are found all over the state, facing an uncertain future owing to the removal pressure from activist groups, notably on campuses (like U of Texas at Austin), so history can be revisited (at my own great sorrow) with today’s lenses and values even if tragic events like in Charlottesville last summer also remind us how sadly they can be used by white supremacists and neo-nazis to advance un-American, unspeakable causes.
  • John Connally, the governor of Texas who was in the car with JFK/Jackie in Dallas in November 1963 and Secretary of the Treasury under Nixon suffered a humiliating four day bankruptcy auction as a result of the savings and loans collapse throughout the Southwest. He had to dispose of luxurious possessions, including ceremonious saddles, extensive gun collection, Persian rugs…In the end, Nellie, his wife, salvaged a cardboard box so he could have a bedside table for his alarm clock.

 

  • Stanley Marcus was the man behind retail chain Neiman Marcus in Dallas, a city so historically anticommunist that it cancelled a concert of Shostakovich because he was Russian and once ripped a bed of poppies as they were red. Stanley Marcus single-handedly desegregated the famed store by welcoming black citizen to shop and, by 1961, by serving two black couples in their top restaurant. He changed Dallas. His PA became a very successful local politician working on all the matters that Stanley Marcus had fought for at the level of his famed department store.

 

  • Houston got its biggest cultural modernisation…by the French when Dominique de Menil, the heiress of the Schlumberger oil-field services company immigrated in 1941 following the Nazi occupation of Paris. The collected 17,000 paintings and work of art centering on cubism, surrealism and pop, bringing artists and filmmakers such as Marcel Duchamp, Max Ernst, Roberto Rossellini, Michelangelo Antonioni and Bernardo Bertolucci and broadening the city’s relation to culture. (By the way, Texas was part of France briefly, between Spain and Mexico).

 

  • In 1948, a decorated WWII naval aviator, Yale graduate, son of a future U.S. Senator from Connecticut and an aspiring young oilman moved his family to a little duplex on a dirt road in hot and dry Odessa, sharing a bathroom with a mother and daughter prostitutes as neighbours. This was the humble beginning of George H.W. Bush and one of the great political dynasties in U.S. history. Of note, most Texans love the Bushes regardless of their political affiliations due to their ideas of service (LW, while an avowed liberal, was close to George W and often a guest at the mansion when he was Governor in 1995-2000).

 

  • Houston’s economy was 80-85% oil and gas in the mid-1980s as we would think. Today it is only 50%. The Houston medical center – the largest medical complex in the world – has more than 100,000 workers in 59 institutions. Houston’s port is the second-busiest in the country, adding 700,000 jobs between 2004 and 2014 or twice the number in NYC. Houston was ranked by The Washington Post as one of the top five restaurant cities in the country (knowing it was the blue collar cousin of Dallas in that respect years back). It has an excellent opera and more theatre space except (for good measure) NYC. By the way, the best museums in Texas are in Fort Worth.
  • Friendliness is a sort of mandate in Texas. Friendship is the state motto. When traveling on a two lane road and seeing a vehicle coming the other way, the protocol is to raise an index finger about an inch of the rim of the steering wheel in a laconic salute. Texas is a rare state when passengers thank the bus driver when disembarking. And if I may quote the famous line from Nelly Connally: “You can’t say that Dallas doesn’t love you, Mr. President.” were the last words that JFK heard in life.

 

  • Hollywood adored the Texas myth with John Ford, William Wyler and Howard Hawks with John Wayne embodying every Texas hero. The Kennedy assassination put an end to the era of heroic Texas movies with Hollywood, according to LW, picturing the state, somehow blamed for having killed the Camelot dream, as an asylum of rednecks, yahoos, drifters and chainsaw massacrers, starting with Slim Pickens as Major “Mad” Kong in Dr. Strangelove and his personal rodeo on the bomb that falls with him from his bomber plane.

 

  • Lyndon Johnson – LBJ – once in a passionate moment said to reporters that his great-grandfather died at the Alamo (as LW said, in Texas it was like a Muslim saying he descended from Prophet Muhammad). The reporters knew the truth but LBJ, larger than life, said he never had said such a thing, even though he had been taped and that they still did not get it. LBJ complained he never had had the time to finish the story: his great-grandfather did not die at the Alamo; he died at the Alamo Hotel in Eagle Pass!

 

  • Lady Bird, LBJ’s wife, (who was always worried about her less glitzy image compared to Jackie) lived a very long life and stayed very involved in the affairs of Texas notably ensuring that the state roads were brilliantly carpeted, having founded the National Wildflower Research Center in Austin in 1982 at age 70. She was known as a very self-deprecating woman whom in her nineties, then suffering from muscular degeneration, at a party in the honour of Shakespeare’s birthday was telling LW that she had been trying to strike a conversation with what turned out to be a “very unresponsive gentleman although I was being my most charming self”, only to add in good spirits that she realised she had been speaking for a couple of minutes to a bust of the Bard.

 

  • We have a view of Texas today as a gun free state but it was not always like that. It remained illegal for Texans to carry guns outside their home or vehicle until the mid- 1990s. Gun laws were actually more restrictive than in 44 other states. Then in 1991

 

  • George Hennard, a 35 year old, drove into Luby’s Cafeteria in Killeen where 150 people were having lunch. He shot 50 people, killing 23, most of them women whom he had especially targeted. Suzanna Hupp, one of the survivors, whose parents died during the attack, got elected in 1996 to the Texas House of Representatives and passed a law allowed for concealed weapons – to let citizens respond and save their lives in the event of another Killeen. “Open and carry” became legal in January 2016 prompted by the gun lobby and in spite of two-thirds of Texans being opposed to it like most if not all police chiefs and as the rate of homicide by guns had gone down from 16.9 per 100,000 in 1980 to 4.8 in 2015. (the book provides amazing stories about gun legislation in Texas and incredible stats on gun laws by states where we learn that there is not even a need for a permit to conceal and carry in…Vermont).
  • In 2003, the Republicans took over the Texas legislature (they had controlled the Governor’s mansion since George Bush beat Democratic incumbent Anne Richards in 1995) for the first time in…130 years. Tom Craddick, the new Speaker, was a Midland Republican, who when he got elected in 1969, was part of a team of 8 elected Republicans, who could not even introduce a bill as they were Republicans and too small a group. At now 73, Tom Craddick is the longest-serving legislator in Texas history. He was key on “redistricting’ the political map to ensure that the GOP would not wait 40 years to get back on top (as an aside the Texas legislature meets for 140 days only, reflecting the state’s native aversion to government, though it should be said its budget is always balanced).

 

  • It looks mean to mention the story but Governor Greg Abbott, the current very conservative GOP Governor, who was a great race track star in his youth had a tree falling on him in 1983 leaving him paralysed from the waist down and in a wheelchair. It is a tribute to him that he mustered the courage and will (very Texan indeed) to have a successful political career ending at the Texas top. He had won a USD 9 m judgement from the homeowner whose tree had fallen and from the tree company that had failed to recommend its removal post inspection. As a later member of the Texas Supreme Court and Attorney General, Abbott supported measures to cap pain-and-suffering damages medical malpractice cases at USD 250,000.

 

  • Governor Rick Perry (the one before Abbott and now in the Trump Administration as Energy Secretary) vetoed a bill in 2011 that would have banned texting while driving on the grounds that it was an attempt to micromanage adult behaviour. The Texas Department of Transportation admits that 400 Texans are killed every year in crashes related to distracted driving, often when texting. There have been many substantial crashes in recent years that came back haunting Rick Perry who pushed for libertarianism over safety when in Austin. Strangely the sponsor of the bill was none other than GOP Speaker Tom Craddick who was putting it forward for the fourth time in 2017 comparing it to the “very unpopular” seat belt law that 95% of people now respected and had saved many lives. It also shows that the Texas GOP is not as uni-dimensional as one might think, bringing some hope to many.
  • Texas, which has a long history with anti-abortion stances and uneasy access to birth control, has the highest rate of repeated teen pregnancy in America even if it is slowing down, costing the state USD 1 bn year in low wages and increased social services. This is one of the salient issues pitting Democrats against Republicans (I will let you read the two sides’ positions on abortion and birth control issues in the book). The funny point, if I may say without offending anyone, is the proposed House Bill 4260 “The Man’s Right to Know Act” sponsored by a female liberal Democratic legislator (mimicking the GOP’s passed legislation in relation to family planning and stressing it on purpose as being for the men’s “own good”) that required a sonogram and a rectal exam before prescribing viagra. In addition there was a section 173.010 that is focused on “Fines Related To Masturbatory Emissions” created in health or medical facilities that need to be stored for a current or future wife though making it clear that “emissions outside a woman’s vagina or created outside a health or medical facility will be fined at USD 100 and considered an act against an unborn child and failing to preserve the sanctity of life”. Only in Texas, where clearly the whole spectrum of the political landscape can be truly amazing…The bill never made it to the House floor but may have been a good topic at the bar of the legislature.

 

  • President Trump complained about illegal voting during the 2016 election, mostly as a way to weaken the shocking (for most non-Americans for sure) near 3 million vote difference with Hillary Clinton, not being able to justify anything. In Texas they take illegal voting very seriously and Ken Paxton, the Texas Attorney general made it his pet project. Rosa Maria Ortega, a 37 year old mother of four with a sixth grade education in Fort Worth, was found to have voted illegally. She came to the U.S. as an infant and was a legal resident, able to serve in the military and paying taxes, the latter which she did. She thought she could vote and actually did not only in 2016 but also in 2012 and 2014. The local prosector decided to make an example of her and she was sentenced to eight years in prison with the prospect of being deported back to Mexico, an unknown country for her at the end. In an ironical twist she was a Republican supporter and had actually voted for Ken Paxton for Texas AG.

 

  • Texas is the largest red state with 38 electoral votes (for the presidency), likely to go to 41 or 42 after the next census. New York has 39 electoral votes and continuously declining. If Texas went blue, Republicans would never gain the White House in any presidential election in the future. Texas is a young, urban state with a majority of minority citizens which means it should be solidly blue according to current voter preferences. Today Texas is de facto a blue state that does not fully vote. However most of its political stars are Republican with five Texans in the latest Republican primaries (Ted Cruz, Rick Perry, Jeb Bush, Rand Paul and, pushing it, Austin-born Carly Fiorina) or 25% of the pack of 20 and by far the largest state contingent.

When all is said and done, At last, perhaps the key-est point as stated by Evan Smith, the founder of Texas Monthly, who has to be on the same side of the spectrum as LW, is that “White people are poking a bear with a stick. In 2004, the Anglo population in Texas became a minority. The reality is, it’s over for the Anglos”. It sounds harsh and final. I do not want to believe that the two main parties are destined to speak for definite ethnicities and tribes, hoping that people can follow concepts and policies based on facts rather than beliefs that replace them. It would be a tragedy for Texas and America if by an infernal spiral the GOP were to become the party of white Anglo America and the Democrats the party of the minorities, racial and otherwise. I believe that there is a way forward when a less fear-driven conservatism relinquishing easy and unworkable populism of many Republicans can gradually evolve into a more sensible common political agenda across the aisles while still considering the identity and the soul of Texas – making its citizens working more together so they keep building this great state at a critical time for America. I also believe that it is possible to work on making Texas and the rest of America working in unison as during all the LBJ years. Nothing is set in stone and Texans, used to great challenges, could even lead that valiant charge. Where there is a will there is a way.

“God Save Texas” is a wonderful book (with many, many more stories that you can discover like the one about unlikely Austin resident and maker of kings Karl Rove or Texas’s key, multi-faceted relationship with Mexico – Imagine if Mexico still incorporated Texas today) that helps understanding one of the most important, if not the most important state in America. Having read it and not being supportive of many directions Texas has taken under his recent governorships, it is clear to me that if Texas is not America, America needs Texas to be. Texas provides America with this extreme existential flavor, at times asperity, that needs to be tempered often but is also the necessary ingredient that makes a great nation.

I dedicate this book note to my two favourite Texans, Anne (again I know and even if from Central Park for years now, but she deserves it for bearing so gracefully with me) and Lou, who is my real pal from El Paso and Dallas and even if he gambles a tad too much with his voting power, knowing he always means well and the divide is not that deep.

Warmest regards,

Serge

 

Serge Desprat- 5th September, 2018 (Prague)

 

The Assault on Intelligence – Michael V. Hayden

30-8-18

Dear Partners in thought,

I wanted to tell you about the “The Assault on Intelligence” by Michael V. Hayden, former Director of the NSA (National Security Agency) and CIA under George W. Bush. Unlike former Obama’s Director of National Intelligence, Jim Clapper’s book (“Facts and Fears”), MH’s is not a memoir of service in which the author also complains about the dire straits of American leadership and its approach to the intelligence community (“IC”). MH is squarely focused on the latter and the matters of truth and facts, also as they apply to the intelligence tradecraft and political leadership in general. While MH was a Clinton and GW Bush appointee, he is a Republican and was part of the foreign policy team of Mitt Romney’s presidential campaign in 2012 in charge of counterterrorism. In his role at NSA, MH was at the forefront of the nascent cyber warfare and all the hacking campaign against American interests and their responses, notably, at the time, on the part of China.

The book is focused on the state of America and the IC, the 2016 presidential campaign, the transition period and the first hundred days of the Trump Administration (defined as “chaos on steroid”), the impact of DT as President on several core national security issues, the relationship between DT, truth and Russia while ending with some conclusions from an evolving story about truth, intelligence and America. To summarise the feelings of many of his intelligence colleagues, MH quotes Robert Kagan, a conservative like Trumpocracy’s David Frum clearly stating at a gathering set up for the Republican congressional caucus at the onset of the Trump era: “Look! What’s going on here is the melting down of the post-World War II, American liberal, Bretton Woods, World Bank, IMF world order. Get it?”.

MH’s starting point with his book is that he wants readers to look at facts and realise that while civil war or societal collapse was not imminent or inevitable, the structures, processes and attitude relied upon to prevent those were under stress and many of the premises on which are based U.S. governance, policy and security were now challenged, eroded or simply gone. He goes on explaining that the craft of intelligence, as practiced in the Western liberal tradition, which is where there is a link with our overall book notes theme, pursues the Enlightenment values. MH explains that intelligence gathers, evaluates and analyses information and then disseminates its conclusions for use, study or refutation, concluding that the erosion of Enlightenment values would devalue or even threaten the practice of good intelligence.

There was clear evidence for MH that there was convergence of a mutually reinforcing swirl of presidential tweets and statements, Russian-influenced social media, alt-right website and talk radio, Russian press like RT and even mainstream U.S. media like Fox News that helped the DT campaign and Russia’s desire to see DT in the White House. MH made a specific effort to understand how and why DT got elected in November 2016. Being a Pittsburgh native, he even went on to organise a meeting with some of his old friends from his neighbourhood, all DT’s supporters, who were finding DT as “an American”, “genuine” and “authentic, not filtering everything or parsing every word”. His old friends were simply not interested in facts, very much along the same lines as, much later, DT’s supporters, even some decent people with high religiously-based principles would give DT a pass on his colourful life as long as he was pushing forward an agenda they liked ranging from the move of the U.S. embassy in Israel to the reshaping of the Supreme Court. He had a chat with Salena Zito co-author of “The Great Revolt” and a Pittsburgh native who confirmed the rationale for DT being in the White House, even if an electoral fluke. In 2016, the U.S., home of free markets and the world’s largest, most integrated economy went populist, nativist and protectionist. MH going through Walter Russell Mead’s classification of American Presidents between Hamiltonians (Romney if he had won in 2012; an America strong thus prosperous); Jeffersonian (Obama II), Wilsonian (George W. Bush; let us free the world of its ills) and Jacksonian (America first; a long time ago) clearly states that DT is more Jacksonian than Andrew himself though at a time where that presidential style family was the least to work well. When the incoming Tea Party wave of new congressmen went to Congress in January 2011, MH was to brief them on international affairs, noticing that it was not their main area of focus and barely prompting him to ask them how many held a passport. MH felt that the U.S. was for a change to come that took place later due to the increasing duel between: internationalist-nativist, nuanced- blunt, informed-instinctive, no drama-all drama, studied-spontaneous, fully formed paragraphs-140 characters, America as an idea-America as blood and soil and free trader-protectionist.

MH quickly found that the campaign was about the truth or more clearly DT not telling it, or at least not bothering to find the truth in order to speak accurately while his campaign normalised lying to an unprecedented degree, routinely disparaging critics with a large number of invectives ranging from lying media, so-called judges, “intelligence” fake news, Washington insiders and the deep state. MH is going so far as mentioning the potential matter of metacognition in relation to the candidate not knowing what he was talking about and not knowing that he did not know. Borrowing from Tom Nichols who teaches national security at the Naval War College he stresses that “the U.S. is now a country obsessed with the worship of its own ignorance, Google fuelled, Wikipedia-based, blog-sodden…with an insistence that strongly held opinions are indistinguishable from facts”. From an intelligence and foreign affairs standpoint, MH and his like-minded internationalist civil servants had many reasons to worry about the rising nativism in DT’s campaign ranging from the alienation of a Southern friend, limitations of the bounty linked to the entrepreneurial vigour of new arrivals, easy confusion between Islam and terrorism, the distance from important allies and cooperative foreign sources and the redefinition of the essence and values of the American nation.

MH makes it clear that American intelligence professionals, through a process of self-selection and acculturation, like their diplomatic counterparts (before many resigned) trend overwhelmingly internationalist. This was seen as the natural order of things with the deep belief that American disengagement rarely made things better anywhere. MH is going through the rising concerns about the candidate during the campaign and the response from the foreign policy and intelligence establishment

with the famed Elliot Cohen letter signed by 122 prominent practitioners (incidentally which might also have helped DT as they were indeed seen as the “establishment” by DT’s supporters, enhancing their beliefs that their candidate was the target of a conspiracy). MH did not sign the Cohen letter as he was on a book tour and thought it might be seen as self-serving. He signed however the John Bellinger letter put out by the former senior legal adviser to Condoleezza Rice at the NSC and State Department which stressed that DT never made any effort to educate himself in, and was displaying an alarming ignorance of, basic facts of contemporary international politics. All the signatories were clearly putting themselves off any role in any future DT Administration should he win, which at the time, was a worry but far from a certainty.

MH visited the relationship that needs to be based on trust between the President and the IC, making some very valid points. The IC deals in “facts” that are stolen, elicited or otherwise acquired to inform executive decision-making. Intelligence is focused on the world as it is while the President and his team dream of the world as they want it to be – especially in the DT era. Intelligence is inductive, swimming in data and attempting to draw conclusions while policymakers are deductive, following first principles, the ones they were elected for, to fit specific situations. Intelligence trends pessimistic, with intel analysts as Bob Gates, once said, “stopping smelling the flowers and looking around the hearse” while policymakers need being optimistic as otherwise they would never have pursued the job. The President is the “first customer” with DT being a challenging one for any IC given that his main objective is to find rationale for the views he holds dear and tells his core electoral base. MH spends much time dealing with the IC trauma of telling DT what he does not want to hear in relation to Russian meddling in the 2016 U.S. electoral process, itself the cardinal sin for DT which would shape his views of the IC and would never changed his basic views of Russia and its leader. This DT posture continued as the aftermath of the Helsinki July meeting with Putin and later mentions of the “Russian hoax” would show (on that matter, MH’s account of the timely Wikileaks release of the DNC’s John Podesta emails, courtesy of “Russia” that provided the goods, thirty minutes after the Washington Post’s publication of a video of DT speaking in explicit terms about groping and kissing women, is very puzzling at the least).

MH has an interesting take on the Transition (the period between the early November election and the late January inauguration) with a focus on intelligence. He is stressing that the intel transition team was not heavily populated (as a result of all the intel segment signatories of letters denouncing DT’s profile) though was lead by Mike Rogers, a former House intel committee chairman selected by Chris Christie, who led the Transition Team before disappearing (he was with Rudy Giuliani, one of two senior Republicans having joined the campaign team but had also prosecuted Jared Kushner’s father for tax fraud, sending him to jail, some years earlier, making it an issue with the First Family). Mike Rogers gave hope to the old intelligence hands as he was seen as giving DT some directions in the field but did not stay beyond transition, leaving the radical wing represented by the Mike Flynn, Steve Bannon, Sebastian Gorka or young Ezra Cohen-Wattnick in lead positions dealing with intel matters. MH goes into some examples we remember about his ignorance of international affairs and his pride in not reading much about issues (“I never (read). I am always busy doing a lot” as he stated on the campaign trail in the summer of 2016). DT was wondering about the meaning of the word “triad” when asked about nuclear forces during a debate. He did not know the names of the leaders of Hezbollah, ISIS and al-Qaeda, not knowing their distinctions, confusing the Iranian Quds Force with the American-friendly Kurds. All these huge gaps created problems to the IC in terms of where to begin to well inform the “first client” all the more when he started by not wanting daily intelligence briefings (“How do you connect for him things that he does not connect himself and he is not aware that they are key?”). The other issue came quickly to be what mattered to DT in terms of facts, the key feature not being accuracy but that “many people agree with me when I say that” as DT told ABC News during the Transition, making it a nightmare to deal with someone who may not distinguish between truth and untruth and being primarily driven by reassuring his core electoral base that feels he can say no wrong, all the more under the assault of the political and media establishments. The relationship between the President and its IC was off to be one of the worst ever in American history, which prompted DT to go to Langley to meet with the CIA staffers one day after the inauguration, conducting according to MH, “the worst presidential visit to an intelligence agency in the history of the American Republic”.

As the DT Administration was now in charge and passing its first hundred days, MH saw a few key policy tenets as follows: i) Immigration will be treated more as a threat to American-well being than as a strategic advantage; ii) Alliances will be seen more as transactional than as strategic relationships; iii) Despite being the global champion of free trade for three quarters of a century, the U.S. will turn more protectionist; iv) The relationship with China will be reset and v) The fight against terrorism will fundamentally be about more combat power. As the new administration goes into motion, MH provides us with testimonies from recently retired intel veterans “happy to have taken the king’s shilling for doing the King’s work”, some happy about the gradually stated more aggressive posture of the new administration but also worrying about what the intel agencies might be asked to do going forward, even if many chaffed about the overlaying, indecision and restrictions imposed in a post-GW bush world during the Obama years. MH felt after 100 days that the IC had helped Team DT realise that “China was not a currency manipulator, NATO was not obsolete and maybe Vladimir Putin sometimes did bad things”, also because the NSC team put together at that point had been receptive and helpful in a post-Mike Flynn era. H.R. McMaster, who replaced Mike Flynn after his reluctant firing (that would lead to serious legal problems for him) was seen as a very positive change by the “professionals” given his status as a thinking military leader built through his PhD thesis-originated book “Dereliction of Duty” on the military leadership failings during the Vietnam war. However H.R. M did not have the gravitas of previous NSC advisers like Kissinger, Brzezinski, Powell or Scowcroft which, dealing with a mercurial leader, would ultimately take its toll as would be seen later.

Besides H.R. M, another good news for the professionals was Jim Mattis at the DoD whose main nickname was not “Mad Dog” but “the warrior monk” closer to General George C. Marshall than to an aggressive George S. Patton combat commander and someone who appreciated intelligence and would work well with the IC via his own DIA. Rex Tillerson at State would be more challenging as while he appeared a positive addition, he ended up alienating both the White House (with his f… moron comment and his questioning, unusually for a cabinet member, of DT’s IQ) and his own department as he wanted to reshape it, prompting a record, mass exodus of needed, long-serving, diplomats. Of note, even those like well known like Eliott Abrams, ex-NSC head of the Middle East under GWB, was crossed out by DT to be Tillerson’s choice for deputy at State as, while he never signed any of the “never Trump” letter, he had published a milder “When you can’t stand your candidate” in the Weekly Standard. John Kelly, (another marine general, stressing the rise of the military – as safe pairs of hands) who was applauded as a great choice to lead Homeland Security, was seen as great news for White House Chief of Staff. MH found that Mike Pompeo as the designate to lead CIA was a sound choice also as he was to be seconded by highly respected CIA veteran Gina Haspel who was to succeed him to lead the agency when Pompeo went to State in 2018. Lastly Indiana Senator Coats, former Ambassador to Germany, was seen as an excellent choice as Director of National Intelligence, overseeing 17 agencies. When thinking of it, the people around Trump were not to his image and could be counted to restrain him while providing him with sound views. MH goes through the Syria, ISIS and Iran approaches developed by DT and the Administration, the latter subject leading to the breaching by the US of the “Iran nuclear agreement” (or JCPOA) followed by the reinstatement of sanctions in August 2018. On North Korea, MH tends to agree with DT that he inherited a mess (reminding us he is no a fan of the Obama era, notably of the US policy towards Syria and the lack of action following the red line crossing after the alleged use of gas on its own population by the Syrian regime).

MH deals with the subject of Russia and its alleged meddling in a focused manner throughout a chapter entitled “Trump, Russia and the truth”. He narrates how the “meddling” in the electoral process started with the Wired magazine in the summer of 2017 that reported a European study finding that the main Russian objective was not to change minds, but “to destroy and undermine confidence in Western media”. MH stresses the convergence and similar degree of ferocity between DT and Russia in their attacks of American institutions while staying away from arguing the facts (DT in a tweet stressed that “there is no truth, so you should just follow your gut and your tribe”), all with an echo chamber between Russian news and American strong and far right-wing outlets. MH deplores that Russia was able to influence the outcome of an election that was ultimately decided by the Americans but unsurprised as the expertise and craft of Russia given his own experience dealing with this matter over the last twenty years, notably in the cyber space and at the NSA. MH goes though how social media played a major role in shaping voter perceptions and helping DT as a candidate, with developments we are seeing only recently and having further consequences even on the stock of Facebook, shaving USD 120 bn in one trading day in July 2018, due to the aftermath of the privacy issues we now are more familiar with.

MH looks at the divided land that he sees as America today, feeling that Russia would be mad not to continue to play as it faces no real costs with Americans making it easier and the government being frozen in its response. He quotes Lenin and his “What is to be done?” which is of course identifying the problem which can be summed up as two intertwined issues: i) the declining relevance of truth as traditionally understood, derived from the evidence-based patterns developed during the Enlightenment; and ii) Russia both exploiting and exacerbating that phenomenon. The latter clearly depends on the former and could not exist nor succeed without the former. Fixing the first point makes the second go away, something that MH sees in Russia having been less successful in manipulating less fractured societies such as Norway, France or Germany. While technology has been a medium of destabilisation of American society, MH feels that the remedy is not to be found in technology, the excesses of which need to be controlled (as we see happening with Big Tech) but the long term cure dealing more with principles and basic political health. He also sees the private sector and notably Silicon Valley (for tech) and Hollywood (for image creation) as being useful partners in the fight with leading figureheads in both joining it (on cybersecurity, it is worth noting MH credits the current administration with good marks, which is encouraging given the new axis of warfare). While focusing on these areas, MH sees the IC as doing not an unimportant role in addressing the declining relevance of truth. He believes that intelligence professionals will keep to their professional duty to collect and analyse intel but is more concerned about the issue of the presentation of that intel and not only on the Russia question. He sees it as crucial that the IC keeps being able to push back against preferred policy narratives, which would not be uncommon with Team Trump when it matters and when they slip the bonds of objective reality, this being a question of simple honesty. All that being said, MH is now recommending younger colleagues not to join Team Trump and not to put themselves at risk for the future when they could still contribute to shaping policy meaningfully under different conditions and leadership. He also reminds us that while the “sound and the fury” are at play, Bob Mueller keeps working at his DoJ investigation and will one day report, this with potentially devastating consequences for DT and his close team (on the time Mueller is taking that DT is irate about, it should be noted that his investigation seriously pales in terms of the time spent in comparison with those of Benghazi or Watergate and that such investigations are in no way linked to any electoral calendars such as that of the November 2018 mid-terms).

MH’s book is a fascinating account focused on International affairs and America from the standpoint of the intelligence professionals and without falling easily into irate criticism of DT and his administration on every point. In writing about the future, MH focuses on the future of truth which he sees as the fundamental item to look for and after with the current American administration. He rightfully stresses, with many of his colleagues, on the strong desire from many foreign countries to find again the America they are now missing. He hopes for a time when the media will not be under attack from an American President undermining the American constitution. He wants a President, paraphrasing Lincoln, who appeals to “the better angels of our nature”. MH quotes Timothy Snyder’s “On Tyranny” (also a former book note): “To abandon facts is is to abandon freedom. If nothing is true, then no one can criticise power as there is no basis to do so. Post-truth is pre-fascim”. MH concludes his book with a sentence formed when visiting Langley to celebrate the retirement of a CIA veteran (and where he met a young and enthusiastic, trained cryptologic linguist who then joined the agency to put his skills to good use but would not have entered the U.S. had the administration ban being in place): “We are accustomed to relying on their truth telling to protect us from foreign enemies. now we may need their truth telling to save us from ourselves”.

I dedicate this book note to my friend, Rufus the IV, and his father Rufus the III, Virginians with a long family line since Plymouth Rock, the latter having been “present at the creation” to borrow from Dean Rusk, from the Yale cradle that was so key in those early years of the Cold War (as depicted in “The Company” by spy novelist Robert Littell).

Warmest regards

Serge

 

Serge Desprat- 30th August, 2018 (Prague)

Unhinged – Omarosa Manigault Newman

29-8-18

Dear Partners in thought,

I know that going from Madeleine Albright to Omarosa Manigault may be a steep shift (I did not say decline) though her book “Unhinged” is very interesting (how British of me) at many levels. It could be a memoir of a colourful TV reality star turned political activist but it is not. It is a rehabilitation attempt book cum preemptive Trumpian shield from a loyalist who either grew genuinely disappointed and/or sought revenge for her ultimate Trumpland treatment, which makes it valuable to read if one focuses on why she says what she says and how she does it. It is actually quite an enjoyable read and I dare say, against all expectations, actually well crafted and rather fluid. To be sure, O’s book is not about policies (beyond those related to the African-American community she focused on) but more about DT’s (or DJT’s as she would write) style and behaviour which are defining features of his presidency and clearly as a way to get back at him for having been disappointed and/or dismissed. O’s book is in the high critical tradition started with journalist Michael Wolff and followed by insiders like Jim Comey and now Sean Spicer. As she stayed in the Trump WH before being pushed out, it is hard to know whether she really objected with so many of DT’s wrong features as described in her book or she was mad at being dismissed, hence the tell all book.

While O tells us about her very poor background in the “projects” – something that is also meant to offset the image of the nasty TV reality star we know (well, those who watch this type of entertainment) – she focuses on various key periods which are her early and long – 12+ year – Trump history mainly with “The Apprentice”, the 2016 campaign and the White House up until her forced exit by Chief of Staff John Kelly assisted by the WH legal team on rather dubious grounds (if we believe O – as she would have transgressed WH car transportation rules). She clearly wants to portray herself as a good person, who just seized the American dream to propel herself out of poverty to the riches and of course with a clear focus on improving the plight of all African-Americans on the way. And she now decided to tell the world how her former mentor was a terrible person.

Interestingly we learn that O was very involved in White House matters way, way earlier having worked there in the last year of Bill Clinton (describing her role as “mid-level staff” which is to the say the least “remarkable” at age 25 then!) and then joining Al Gore’s presidential campaign in 2000. O is actually a registered Democrat (interestingly at the time so was DT). Apparently, many accounts say she was not very good at any of the roles she had for Bill and Al, something she does not mention in the book (having said this, these accounts may be DT-driven too so one should be cautious in our age of easy news). The fun part on the political angle of things is that O worked hard to being part of the Hillary campaign in 2015 but was forgotten for another lady out of doing a favour for a congressman close to HC, making O ultimately rooting for her old boss and against the “swampy” manoeuvring she felt victim of. She tells us that she also joined his campaign team all the more easily as she felt DT was a lost cause with no hope of winning, which looks a bit too rearview mirror easy even if the odds were long at the time.

In 2003, she found in DT a father she lost too early and while making a great TV career with national reach, joined a cult where loyalty was the key driver, making her a very faithful cheerleader and, as time went by, a partner of DT, never questioning his shortcomings. She saw many objectionable traits of DT, notably in relation to women over the years that she never, admittedly, challenged as he was just “like that” (his relationship with Ivanka made her very unsettled, with DT’s wandering hands and claims he would date her should she not be his daughter, though apparently O tells us the first daughter was playing on that trait to manage or control her father). It is clear that O fills her book with the bad aspects of DT that she otherwise clearly found very manageable over fifteen years, creating a terrible image of the President. Faithful no more…

She was the only African-American on the presidential campaign team that was led by white men (and Kellyanne Conway at some point) and in charge of the African- American outreach. Her goal was for DT to do better than Mitt Romney in 2012 who had attracted 6% of the African-American vote (in the end, DT got 8% while HC got far less than Obama had achieved). She wanted to run the Office of Public Liaison (OPL) part of the Executive Office but Reince Priebus who had run the Republican National Committee (wanting DT “out” after the Hollywood tapes, something that would stick) and now, as Chief of Staff (we almost forgot) in charge of “roles” in the early DT White House did not think she made the cut so gave her a communications role at the OPL (focused on African-Americans), which she finally accepted (she really wanted in). O describes her daily schedule of meetings in the Reince galaxy at the WH including all the tenors from the times including Ivanka, Jared, Bannon, Kellyanne Conway (a future nemesis she always likes to beat hard on) and the A team. She sees DT two to three scheduled times a day and in fact many more times due to his Trump Organisation’s legacy of the open door policy and “his need to fight loneliness and to see familiar faces”.

That section on the WH is part O’s memoir, part attacks on DT (which would never had been aired before her dismissal). We learn that DT does not read and he is “just side of the functionally literate”. O stresses unequivocally that DT “has never read from beginning to end any piece of legislation, policies even some executive orders that he has signed” or that advisers “spoon feed” him five to ten bullet points notes about legislations, forgoing any discussion of their complexities. There is little doubt that even if true these statements are there to hurt or to show what could come next, like with the famous tapes including the N word and many other things (as an aside and regardless of DT, that O would tape these meetings and conversations is also educational about her true personality for whom the loyalty she talks so much about may have been purely tactical). DT would “struggle with complex documents or complex briefings” and the senior WH team knowing he is the messenger, not the writer of the message would rely on his charisma and make excuses for his faults in true cult fashion. O gradually seemed to have felt that she was not considered core as she was asked to take the blame supposedly for mistakes of others like Kellyanne Conway, “the chameleon”, who becomes one of the chief villains in O’s book (a status not hard to achieve when seeing her in action, but a common feature of many in the Trump WH if one is to believe O). She goes at length about DT’s lack of impulse control and the team’s problems to control and tally his tweets, which have become the stuff of legend and start losing their impact even if they help change the level of the acceptable political discourse and hence general civility (based on a number of live experiences, I believe DT’s poor communication style has had an impact on how many Americans feel they can behave and communicate in society). We learn that one of the erratic aspects of DT would be when he would correct one of his most terrible earlier tweets as his team would work on managing its fallout though without telling the team. We also learn that not one – “not a single one” – top person in the WH agreed with DT’s firing of FBI Director Comey on loyalty grounds. She insists upon DT’s mental decline which she says she was able to notice as having known him for years and noticing his many lapses in the WH (also lambasting the WH doctor Ronny Jackson “who would go on to declare an obviously obese, sleep-deprived man in excellent health”). She also dwells on the Don Corleone loyalty expected by DT from all his staff while he treats them as he wishes. She tells us about DT’s dismissive, critical and mocking behaviour toward some of the staff, especially with Sean Spicer, the first Trump WH press secretary and communications director nicknamed “the spokesman from Men’s Warehouse. Cheap and tacky”. There are some expected savoury tidbits as when Anthony “The Mooch” Scaramucci having just been fired after only a few days in the job goes into a cubicle and starts crying “like a girl” (again if we believe O).

It is clear that her race and the fact she was the only senior black woman in the Trump WH was a key issue for O, making us know that she felt like being the “token black” in Trumpland (even if there was Ben Carson as HUD Secretary). Certainly the “token black lady”. It would appear that she genuinely worked hard to ensure better race relations and improve the conditions of black students, particularly at black colleges (she received a Master’s degree from Howard in DC, a beacon of “black college” education which she is deservedly very proud of). That latter mission where she tried working with Education Secretary Betsy DeVos (Blackwater’s Erik Prince’s sister en passant) and her for-profit education mission seems to have rattled O. In addition the dramatic events in Charlottesville in the summer of 2017 are reported by O with a personal angle and clearly shook her to the core as an African-American and the official in charge of OPL communications in relation to African-American matters – one feels that this event may have dampened her loyalty to DT given his response to the tragedy (as an aside and more generally O seems to have been conflicted between her image of the “strong black woman” – her words – which served her well in reality TV and also drove her to the WH and her perceived continuous offenses in private on the part of most senior white male staffers dealing with a senior African-American woman though knowing that she could not defend herself adequately lest she passed for an “angry black woman”).

It is really difficult to know whether O is a genuine person, so much she is a TV reality one and whether she really believes in the causes she advances in her book. She was, given her background, the odd duck in the WH team but then there have been many others, who if they had a more formal, elitist education and background, would not be considered top tier among civil servants or politicians, as if the word “expert” was definitely out, allowing for other “managers” to come in and work as if beliefs were facts. Her account of her time with DT, during the campaign and at the WH is definitely interesting if only from a sociology point but smells of revenge and unwittingly depicts a shark tank, well beyond the usual norms of politics. That a faithful TV reality star and partner got a role at the WH says everything about the nature of the Trump WH. That she, unwittingly or not, took what looks like her revenge the way she did, adding to what most observers would know and have read from others “leavers”, does not add much to our understanding of the current workings of the WH but reinforces the feeling we have for this WH. That she accepted to work for DT while being so offended by so many aspects of his presidential style and stayed does not show great spine but is what one would expect – she really enjoyed working at the WH and would have probably stayed much longer if not pushed out. If anything the book is an extension of TV reality and O is indeed very good at it. When all is said and done, the prevailing feeling is that it is indeed a book about revenge and as DT would say, accurately for once, also about betrayal if we accept that Trump made O as she writes herself.

If I may say, I am not dedicating this book to anyone out of fear of offending but it does not mean it should not be read. I was hesitant to add to O’s royalties but decided that it is always educational to do such an exercise and trying to understand what goes in their minds. As Ed Luce wrote in the FT recently, 90% of Republican voters (not the independents) still support DT in spite of “all” we know about him. This is the true enigma. Why do good people – and most Republicans certainly are – still support DT after all we have read from a variety of people, his lack of dignity for the role, style, behaviour, tweets, not to mention erratic, ill-thought policies and lately the McCain flag controversy that says it all? This is the baffling point which the current state of the economy, unemployment level and stock market cannot explain given the harm done at so many levels and the future at stake.

Warmest regards,

Serge

 

Serge Desprat- 29th August, 2018 (Prague)

 

Prague in Winter & On Fascism – Madeleine Albright

21-8-18

Dear Partners in thought,

I wanted to tell you about two books from Madeleine Albright, the former Secretary of State under Bill Clinton and a personality whom we know well and is always very engaged in the defence of Western liberal values. She is 81 years old now and still very active, having written a recent book on “Fascism” that depicts her fights for democracy worldwide as part of her long mandate (in another time for U.S. diplomacy and leadership) and “Prague Winter” about her childhood in Prague and also London as a Czechoslovak child born in 1937 (in Smichov, my very neighbourhood), something that some people (not us of course) do not realise or have forgotten but is a key aspect of whom she became and she is.

“Prague in Winter – A Personal History of Remembrance and War – 1937-1948”, published in 2012 narrates her life in Prague (based on family accounts that she researched in the nineties and later) and in London during the war before returning to Prague in 1945 and then finally going to America in 1948. She was not just a Czechoslovak child like any other. She was born Marie Jana Korbelova, the daughter of Josef Korbel, who was a senior Czechoslovak diplomat, working as the right end man to Jan Masaryk, himself the son of Tomas Garrigue Masaryk, the founder and first President of Czechoslovakia in 1918. Jan went on to become Ambassador to London during the Munich Agreement, (I recommend you the great 2017 movie “Masaryk” with top Czech actor Karel Roden in the lead role), then part of the London-based government in exile during the war and Minister of Foreign Affairs in 1945, only to fall from his window at the ministry in the Bohemian defenestration tradition after the Czech Communists won the parliamentary elections in 1946, setting the stage for a long and dark journey. Josef Korbel, his main aide, who had gone to be Ambassador to Yugoslavia after the war, then emigrated to America and taught International relations while settling his family in Denver. The University of Denver’s school of foreign policy is now named after him. One of the strange aspects of MA’s story is that she had not realised by the age of 59, when she became Secretary of State, what her true roots were and that she was actually Jewish (having been raised a Catholic and having converted to Episcopalianism for her marriage to Mr. Albright in 1958). MA only discovered this rafter defining fact while traveling to the country of her birth in her role of top American diplomat, which led to the writing of her book. “Prague in Winter” that became a personal journey into her Jewish roots as well as into totalitarianism in her country of birth and gradually all of Central & Eastern Europe. One part that is especially gripping is the period of 1945 to 1948 when all was still possible for the future of Czechoslovakia which then went into the post-war Communist and then Stalinist camps, following the local Communist party win and gradual takeover of the young, reborn, democracy following the Nazi occupation. There are great accounts of this period and I also recommend little-known Boston University’s Igor Luke’s “On the Edge of the Cold War – American diplomats and spies in postwar Prague”. The American legation in Prague was always a place with interesting game changers such as George Kennan, who became famous for his “Long Telegram” from Moscow in 1946 and was actually stationed in Prague in 1937. The period before the fall in 1948 was indeed one of intense activity by American diplomats in Prague to try to keep Czechoslovakia from falling for the then highly popular Czech Communist Party basking in the key role of the Soviets in defeating the Nazis. Of note in today’s debate about immigration, MA became a U.S. citizen only in 1957. One criticism, echoed by the late Philippe Kerr, back in 2012 was that MA did not have in her book a word of thanks for Britain, which while arguably tainted (like France) by the 1938 Munich agreements, ensured that MA and her close family were rescued and did not end up in Theresienstadt or Auchwitz like some other family members. The book is a first hand account of a period not well known by most unless one lives in Prague, though with memories vanishing or not wanting to be triggered locally. It is a must read for lovers of history, particularly about the onset of the Cold War. I also recommend you the excellent “Iron Curtain – The crush of Eastern Europe 1946-58” (2012) by Anne Applebaum, the well-know commentator of that period and also spouse of Radek Sikorski, the former Polish Foreign Minister in the Donald Tusk government from 2007 to 2014, also in a different time for Poland.

“On Fascism – A Warning”, which was well reviewed in the FT earlier this year, is about MA’s experiences dealing with totalitarianism while being Secretary of State and afterwards. This is also based on exchanges with her students as she went on to teach international relations at Georgetown University after her role in the Clinton Administration. The book deals with the main question that is: “Can it happen here?” and is of course linked to the rise of populism and the attacks against Western liberal values and our democratic system. She focuses on Europe and America looking at the needed ingredients allowing the rise of fascism which she sees as economic, social and political chaos as in the case of interwar Germany and Italy with their high unemployment and left and right wing gang battles in the street (developments when incivility takes root in the political discourse) that lead to despair for the citizenry of these countries. MA looks at parallels with Hugo Chavez’s rise to power in Venezuela, Viktor Orban’s economic backdrop in Hungary, Recep Tayyip Erdogan’s gradual suffocation of democracy in Turkey or Vladimir Putin in Russia which, even if he was desired to restore order and dignity, also benefitted from a country having lost half of its economy in the 1990s. She thus sees problems being opportunities for fascists and other anti-democrats. She also mentions the connivence of the conservatives who always think they can control fascism and can use its popular support to achieve their own goals. She hopes that Democrats and Republicans will work together, worrying that Trump’s isolationism, protectionism and fondness for dictators are weakening America’s ability to solve international challenges (which may no longer be a goal), while deepening divisions among allies and strengthening anti-democratic forces. In the end, MA remains hopeful, looking at Abraham Lincoln and Nelson Mandela as guides who did save their countries when they were going through immense and irreconcilable challenges in their own times. She feels strongly that we need to recognise history lessons and should never take history for granted. As she says: “The temptation is powerful to close our eyes and wait for the worst to pass, but history tells us that for freedom to survive, it must be defended and if lies are to stop, they must be exposed”. It is clear that MA also writes thinking much of Trump and the direction taken by America on a number of key topics. She would also advises, like me if I my say, that those who like Trump because of a low unemployment rate and good economic growth, all of which are temporary and the result of many factors, not to think that style and values no longer matter in the way freedom, democracy and indeed the indispensable country should be conducted.

I dedicate this note to Bert, born Hubertus in the low countries, Yale Law School graduate and a great globalist who has done so much for impact investing in emerging markets from his great firm and with his amazing team in DC, the latter which I also salute chapeau bas.

Warmest regards,

Serge

 

Serge Desprat- 21st August, 2018 (Washington, DC)