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Author: Arthur Chesterfield-Evans

What is Happening in Ukraine?

Chas Freeman   30 September 2023

Here is a long , comprehensive and credible analysis.
The many lessons of the Ukraine war - Pearls and Irritations

My talk, like the conflict in Ukraine, is a long and complicated one. It contradicts propaganda that has been very convincing. My talk will offend anyone committed to the official narrative. The way the American media have dealt with the Ukraine war brings to mind a comment by Mark Twain: “The researches of many commentators have already thrown much darkness on this subject, and it is probable that, if they continue, we shall soon know nothing at all about it.”

Remarks to the East Bay Citizens for Peace. Ambassador Chas W. Freeman, Jr. (USFS, Ret.)
Visiting Scholar, Watson Institute for International and Public Affairs, Brown University
The Barrington Library, Barrington, Rhode Island, 26 September 2023.

I want to speak to you tonight about Ukraine – what has happened to it and why, how it is likely to emerge from the ordeal to which great power rivalry has subjected it; and what we can learn from this. I do so with some trepidation and a warning to this audience. My talk, like the conflict in Ukraine, is a long and complicated one. It contradicts propaganda that has been very convincing. My talk will offend anyone committed to the official narrative. The way the American media have dealt with the Ukraine war brings to mind a comment by Mark Twain: “The researches of many commentators have already thrown much darkness on this subject, and it is probable that, if they continue, we shall soon know nothing at all about it.”

It is said that, in war, truth is the first casualty. War is typically accompanied by a fog of official lies. No such fog has ever been as thick as in the Ukraine war. While many hundreds of thousands of people have fought and died in Ukraine, the propaganda machines in Brussels, Kyiv, London, Moscow, and Washington have worked overtime to ensure that we take passionate sides, believe what we want to believe, and condemn anyone who questions the narrative we have internalised. No one not on the front lines has any real idea of what has been happening in this war. What we know is only what our governments and other supporters of the war want us to know. And they have developed the bad habit of inhaling their own propaganda, which guarantees delusional policies.

Every government that is a party to the Ukraine War – Kyiv, Moscow, Washington, and other NATO capitals – has been guilty of various degrees of self-deception and blundering misfeasance. The consequences for all have been dire. For Ukraine, they have been catastrophic. A radical rethinking of policy by all concerned is long overdue.

Whence and whither NATO?

First, some necessary background. NATO (the North Atlantic Treaty Organisation) came into being to defend the European countries within the post-World War II American sphere of influence against the Union of Soviet Socialist Republics (USSR) and its satellite nations. NATO’s area of responsibility was the territory of its members in North America and Western Europe, but nowhere beyond that. The alliance helped maintain a balance of power and keep the peace in Europe during the four-plus decades of the Cold War. In 1991, however, the USSR dissolved, and the Cold War ended. That eliminated any credible threat to NATO members’ territory and raised this issue: if NATO was still the answer to something, what was the question?

The U.S. armed forces had no problem responding to that conundrum. They had compelling vested interests in the preservation of NATO.

  • NATO had created and sustained a post-World War II European role and presence for the U.S. military,
  • This justified a much larger U.S. force structure and many more highly desirable billets for flag officers [Generals and admirals] than would otherwise exist,
  • NATO enhanced the international stature of the American armed forces while fostering a unique U.S. competence in multinational alliance and coalition management, and
  • It offered tours of duty in Europe that made peacetime military service more attractive to U.S. soldiers, sailors, airmen, and marines.

Then, too, the 20th century had appeared to underscore that U.S. security was inseparable from that of other north Atlantic countries. The existence of European empires ensured that wars among the great powers of Europe – the Napoleonic wars, World War I and World War II – soon morphed into world wars. NATO was how the United States dominated and managed the Euro-Atlantic region in the Cold War. Disbanding NATO or a U.S. withdrawal from it would, arguably, just free Europeans to renew their quarrelling and start yet another war that might not be confined to Europe.

So, NATO had to be kept in business. The obvious way to accomplish that was to find a new, non-European role for the organisation. NATO, it came to be said, had to go “out of area or out of business.” In other words, the alliance had to be repurposed to project military power beyond the territories of its Western European and North American member states.

In 1998, NATO went to war with Serbia, bombing it in 1999 to detach Kosovo from it. In 2001, in response to the ‘9/11’ terrorist attacks on New York and Washington, it joined the U.S. in occupying and attempting to pacify Afghanistan. [ Ukraine contributed troops to this NATO operation despite not being a member of the alliance.] In 2011, NATO fielded forces to engineer regime change in Libya.

The coup in Kyiv, Crimea, and the rebellion of Russian speaking Ukrainians

In 2014, after a well-prepared US-sponsored anti-Russian coup in Kyiv, Ukrainian ultranationalists banned the official use of Russian and other minority languages in their country and, at the same time, affirmed Ukraine’s intention to become part of NATO. [Reportedly, by 2014, various agencies of the U.S. government had committed a cumulative total of $5 billion or more to political subsidies and education in support of regime change in Ukraine]. Among other consequences, Ukrainian membership in NATO would place Russia’s 250-year-old naval base in the Crimean city of Sebastopol under NATO and hence U.S. control. Crimea was Russian-speaking and had several times voted not to be part of Ukraine. So, citing the precedent of NATO’S violent intervention to separate Kosovo from Serbia, Russia organised a referendum in Crimea that endorsed its reincorporation in the Russian Federation. The results were consistent with previous votes on the issue.

Meanwhile, in response to Ukraine’s banning of the use of Russian in government offices and education, predominantly Russian-speaking areas in the country’s Donbas region attempted to secede. Kyiv sent forces to suppress the rebellion. Moscow responded by backing Ukrainian Russian speakers’ demands for the minority rights guaranteed to them by both the pre-coup Ukrainian constitution and the principles of the Organisation for Security and Cooperation in Europe (OSCE). NATO backed Kyiv against Moscow. An escalating civil war among Ukrainians ensued. This soon evolved into an intensifying proxy war in Ukraine between the United States, NATO, and Russia.

Negotiations at Minsk, mediated by the OSCE with French and German support, brokered agreement between Kyiv and Moscow on a package of measures, including:

  • a ceasefire,
  • the withdrawal of heavy weapons from the front line,
  • the release of prisoners of war,
  • constitutional reform in Ukraine granting self-government to certain areas of Donbas, and
  • the restoration of Kyiv’s control of the rebel areas’ borders with Russia.

The United Nations Security Council endorsed these terms. They represented Moscow’s acceptance that Russian-speaking provinces in Ukraine would remain part of a united but federalised Ukraine, provided they enjoyed Québec-style linguistic autonomy. But, with U.S. support, Ukraine refused to carry out what it had agreed to. Years later, the French and Germans admitted that their mediation efforts at Minsk had been a ruse directed at gaining time to arm Kyiv against Moscow and Ukrainian President Volodymyr Zelensky (like his predecessor in office, Petro Poroshenko) confessed that he had never planned to implement the accords.

Moscow and NATO enlargement

In 1990, in the context of German reunification, the dissolution of the Warsaw Pact, and Russia’s abandonment of its politico-economic sphere of influence in Central and Eastern Europe, the West had several times somewhat slyly but solemnly promised not to fill the resulting strategic vacuum by expanding NATO into it. But as the 1990s proceeded, despite a lack of enthusiasm on the part of some other NATO members, the United States insisted on doing just that. NATO enlargement steadily erased the Eastern European cordon sanitaire of independent neutral states that successive governments in Moscow had considered essential to Russian security. As former members of the Warsaw Pact entered NATO, U.S. weaponry, troops, and bases appeared on their territory. In 2008, in a final move to extend the U.S. sphere of influence to Russia’s borders, Washington persuaded NATO to declare its intention to admit both Ukraine and Georgia as members.

The eastward deployment of U.S. forces placed ballistic missile defence launchers in both Romania and Poland. These were technically capable of rapid reconfiguration to mount short-range strikes on Moscow. Their deployment fuelled Russian fears of a decapitating U.S. surprise attack. If Ukraine entered NATO and the U.S. made comparable deployments there, Russia would have only about five minutes’ warning of a strike on Moscow. NATO’s role in detaching Kosovo from Serbia and in U.S. regime-change and pacification operations in Afghanistan and Libya as well as its support of anti-Russian forces in Ukraine, had convinced Moscow that it could no longer dismiss NATO as a purely defensive alliance.

As early as 1994, successive Russian governments began to warn the U.S. and NATO that continued NATO expansion – especially to Ukraine and Georgia – would compel a forceful response. Washington was aware of Russian determination to do this from multiple sources, including reports from its ambassadors in Moscow. In February 2007. Russian President Vladimir Putin, speaking at the Munich Security Conference, declared: “I think it is obvious that NATO expansion … represents a serious provocation … And we have the right to ask: against whom is this expansion intended? And what happened to the assurances our western partners made after the dissolution of the Warsaw Pact?” On February 1, 2008, Ambassador Bill Burns, now the director of the Central Intelligence Agency (CIA), warned in a telegram from Moscow that, on this subject Russians were united and serious. Burns felt so strongly about the consequences of NATO expansion into Ukraine that he gave his cable the subject line, “Nyet Means Nyet” [“No means no.”]

In April 2008, NATO nonetheless invited both Ukraine and Georgia to join it. Moscow protested that their “membership in the alliance is a huge strategic mistake which would have most serious consequences for pan-European security.” By August 2008, as if to underscore this point, when an emboldened Georgia sought to extend its rule to rebellious minority regions on the Russian border, Moscow went to war to consolidate their independence.

Civil and proxy war in Ukraine

Less than a day after of the US-engineered coup that installed an anti-Russian regime in Kyiv in 2014, Washington formally recognised the new regime. When Russia then annexed Crimea and civil war broke out with Ukraine’s Russian speakers, the United States sided with and armed the Ukrainian ultranationalists whose policies had alienated Crimea and provoked the Russian-speaking secessionists. The United States and NATO began a multi-billion-dollar effort to reorganise, retrain, and re-equip Kyiv’s armed forces. The avowed purpose was to enable Kyiv to reconquer the Donbas and eventually Crimea. Ukraine’s regular army was then decrepit. Kyiv’s initial attacks on Russian speakers in the Ukrainian eastern and southern regions were largely conducted by ultranationalist militias. By 2015, Russian soldiers were fighting alongside the Donbas rebels. An undeclared US/NATO proxy war with Russia had begun.

[Prior to the U.S. and NATO decision to aid Ukraine against its Russian-backed separatists, these militias were commonly identified as neo-Nazi in the Western media.  They professed to be followers of Stepan Bandera – who has now been adopted as a revered national figure by Kyiv.  Bandera was famous for his extreme Ukrainian nationalism, fascism, antisemitism, xenophobia, and violence.  He and his followers were allegedly responsible for massacring 50,000 – 100,000 Poles and for collaborating with the Nazis in the murder of an even larger number of Jews.  After the US/NATO proxy war broke out, despite their continuing display of Nazi regalia and symbols on their uniforms and their ties to neo-Nazi groups in other countries, Western media ceased to characterize these militias as neo-Nazis.]

Over the course of the next eight years – during which the Ukrainian civil war continued – Kyiv built a NATO-trained army of 700,000 – not counting one million reserves – and hardened it in battle with Russian-supported separatists. Ukrainian regulars numbered only slightly less than Russia’s then 830,000 active-duty military personnel. In eight years, Ukraine had acquired a larger force than any NATO member other than the United States or Türkiye, outnumbering the armed forces of Britain, France, and Germany combined. Not surprisingly, Russia saw this as a threat.

Meanwhile, as tensions with Russia escalated, in early 2019 the United States unilaterally withdrew from the Intermediate Nuclear Force (INF) Treaty, which had barred ground-launched missiles with ranges of up to 3,420 miles from deployment in Europe. Russia condemned this as a “destructive” act that would stoke security risks. Despite ongoing misgivings on the part of some other NATO members, at American insistence, NATO continued periodically to reiterate its offer to incorporate Ukraine as a member, doing so once more on September 1, 2021. By that time, after billions of dollars of U.S. training and arms transfers, Kyiv judged it was finally ready to crush its Russian speakers’ rebellion and their Russian allies. As 2021 ended, Ukraine stepped up pressure on the Donbas separatists and deployed forces to mount a major offensive against them timed for early 2022.

Moscow demands negotiations

At about the same time, in mid-December 2021, twenty-eight years after Moscow’s first warning to Washington, Vladimir Putin issued a formal demand for written security guarantees to reduce the apparent threats to Russia from NATO enlargement by restoring Ukrainian neutrality, banning the stationing of U.S. forces on Russia’s borders, and reinstating limits on the deployment of intermediate-range and shorter-range missiles in Europe. The Russian foreign ministry then presented a draft treaty to Washington incorporating these terms – which echoed similar demands put forward by former Russian President Boris Yeltsin in 1997. At the same time, apparently both to underscore Moscow’s seriousness and to counter Kyiv’s planned offensive against the Donbas secessionists, Russia massed troops along its borders with Ukraine.

On January 26, 2022, the U.S. formally responded that neither it nor NATO would agree to negotiate Ukrainian neutrality or other such issues with Russia. A few days later, Russian Foreign Minister Sergei Lavrov laid out his understanding of the American and NATO positions at a meeting of Russia’s Security Council as follows:

“[Our] Western colleagues are not prepared to take up our major proposals, primarily those on NATO’s eastward non-expansion. This demand was rejected with reference to the bloc’s so-called open-door policy and the freedom of each state to choose its own way of ensuring security. Neither the United States, nor [NATO] … proposed an alternative to this key provision.”

Moscow wanted negotiations but, in their absence, was prepared to go to war to remove the threats to which it objected. Washington knew this when it rejected talks with Moscow. The American refusal to talk was an unambiguous decision to accept the risk of war rather than explore any compromise or accommodation with Russia. U.S. and allied intelligence services immediately began releasing information purporting to describe impending Russian military operations[5] in what they described as an attempt to deter them. [The “special military operation’ mounted by Russia bore little resemblance to the specific predictions put forward in this information warfare, which appears have been designed as much to rally support for Ukraine and boost its morale as to deter Russia.]

Russia invades Ukraine

In mid-February, fighting between Ukrainian army and secessionist forces in Donbas intensified, with OSCE observers reporting a rapid rise in ceasefire violations by both sides but with most allegedly initiated by Kyiv. Perhaps disingenuously, the Donbas secessionists appealed to Moscow to protect them and ordered a general evacuation of civilians to safe havens in Russia. On February 21, Russian President Putin recognised the independence of the two Donbas “people’s republics” and ordered Russian forces to secure them against Ukrainian attacks.

On February 24, 2022, in an address to the Russian nation, Putin declared that “Russia cannot feel safe, develop, and exist with a constant threat emanating from the territory of modern Ukraine” and announced that he had ordered what he called a “special military operation” “to protect people who have been subjected to bullying and genocide . . . for the last eight years” and to “strive for the demilitarisation and denazification of Ukraine.” He added that:

“It is a fact that over the past 30 years we have been patiently trying to come to an agreement with the leading NATO countries regarding the principles of equal and indivisible security in Europe. In response to our proposals, we invariably faced either cynical deception and lies or attempts at pressure and blackmail, while the North Atlantic alliance continued to expand despite our protests and concerns. Its military machine is moving and, as I said, is approaching our very border.”

The official narrative put forward in U.S. and NATO information warfare against Russia contradicts every element of this statement by President Putin, but the record affirms it.

The run-up to the U.S.-Russian proxy war in Ukraine

In the post-Soviet era:

  • NATO – the U.S. sphere of influence and military presence in Europe – constantly expanded toward Russia’s borders despite escalating Russian warnings and protests.
  • By contrast, Moscow was in constant retreat. It had abandoned its sphere of influence in Eastern Europe. It made no effort to reestablish it.
  • Moscow repeatedly warned that NATO enlargement and U.S. forward deployment of forces that might threaten it, especially from Ukraine, were a grave threat to it to which it would feel compelled to react.
  • Given NATO’s transformation from a purely defensive, Europe-focused alliance into an instrument for power projection in support of U.S. regime-change and other military operations beyond its members’ borders, Moscow had a reasonable basis for concern that Ukrainian membership in NATO would pose an active threat to its security. This threat was underscored by U.S. withdrawal from the treaty that had prevented it from stationing intermediate-range nuclear weapons in Europe, including in Ukraine.
  • Moscow consistently demanded neutrality for Ukraine. Neutrality would make Ukraine both a buffer and bridge between itself and the rest of Europe, rather than part of Russia or a platform for Russian power projection against the rest of Europe.
  • By contrast, the United States sought to make Ukraine a member of NATO – part of its sphere of influence – and a platform for the deployment of U.S. military power against Russia.
  • Moscow agreed at Minsk to respect continued Ukrainian sovereignty in the Donbas region, provided the rights of Russian speakers there were guaranteed. But, with support from the U.S. and NATO, Ukraine declined to implement the Minsk agreement and redoubled its effort to subjugate the Donbas.
  • When Washington refused to hear the Russian case for mutual accommodation in Europe and instead insisted on Ukrainian membership in NATO, the U.S. government knew that this would produce a Russian military response. In fact, Washington publicly predicted this.
  • Early in the resulting war, when third-party mediation achieved a draft peace agreement between Russia and Ukraine, the West – represented by the British – insisted that Ukraine repudiate it.

This sad incident brings me to the war aims of the participants in the war.

War aims in Ukraine

Kyiv has not wavered from its objectives of:

  • Forging a purely Ukrainian national identity from which Russian and other languages, cultures, and religious authorities are excluded.
  • Subjugating the Russian speakers who rebelled in response to this attempt at their forced assimilation.
  • Obtaining U.S. and NATO protection and integrating with the EU.
  • Reconquering the Russian-speaking territories Moscow has illegally annexed from Ukraine, including both the Donbas oblasts and Crimea.

Moscow clearly stated its maximum and minimum objectives in the draft treaty that it presented to Washington on December 17, 2021. Core Russian interests have been and remain:

  • (1) to deny Ukraine to the American sphere of influence that has engulfed the rest of Eastern Europe by compelling Ukraine to affirm neutrality between the United States / NATO and Russia, and
  • (2) to protect and ensure the basic rights of Russian speakers in Ukraine.

Washington’s objectives – which NATO has dutifully adopted as its own – have been much more open-ended and unspecific. As National Security Adviser Jake Sullivan put it in June 2022,

“We have . . . refrained from laying out what we see as an endgame. . .. We have been focused on what we can do today, tomorrow, next week to strengthen the Ukrainians’ hand to the maximum extent possible, first on the battlefield and then ultimately at the negotiating table.”

Inasmuch as the first principle of warfare is to establish realistic objectives, a strategy to achieve them, and a plan for war termination, this is a perfect description of how to brew up a “forever war.” As Vietnam, Afghanistan, Iraq, Somalia, Libya, Syria, and Yemen attest, this has become the established American way of war. No clear objectives, no plan to achieve them, and no concept of how to end the war, on what terms, and with whom.

The most cogent statement of U.S. objectives in this war was offered by President Biden as it began. He said his goal with Russia was to “sap its economic strength and weaken its military for years to come” – whatever it takes. At no point has the United States government or NATO declared that the protection of Ukraine or Ukrainians, as opposed to exploiting their bravery to take down Russia, is the central American objective. In April 2022, Secretary of Defence Lloyd Austin reiterated that U.S. aid to Ukraine was intended to weaken and isolate Russia and thereby deprive it of any credible capacity to make war in future. Quite a few American politicians and pundits have extolled the benefits to having Ukrainians rather than Americans sacrifice their lives for this purpose. Some have gone farther and advocated the breakup of the Russian Federation as a war aim. If you are Russian, you don’t have to be paranoid to see such threats as existential. Russian President Putin assesses U.S. war aims as directed at humbling the Russian Federation strategically and, if possible, overthrowing its government, and dismembering it. The United States has not disputed this assessment.

Peace set aside

In mid-March 2022, the government of Turkey and Israeli Prime Minister Naftali Bennett mediated between Russian and Ukrainian negotiators, who tentatively agreed on the outlines of a negotiated interim settlement. The agreement provided that Russia would withdraw to its position on February 23, when it controlled part of the Donbas region and all of Crimea, and in exchange, Ukraine would promise not to seek NATO membership and instead receive security guarantees from a number of countries. A meeting between Russian President Putin and Ukrainian President Zelensky was in the process of being arranged to finalise this agreement, which the negotiators had initialed ad referendum – meaning subject to the approval of their superiors.

On March 28, 2022. President Zelensky publicly affirmed that Ukraine was ready for neutrality combined with security guarantees as part of a peace agreement with Russia. But on April 9 British Prime Minister Boris Johnson made a surprise visit to Kyiv. During this visit, he reportedly urged Zelensky not to meet Putin because (1) Putin was a war criminal and weaker than he seemed. He should and could be crushed rather than accommodated; and (2) even if Ukraine was ready to end the war, NATO was not.

Zelensky’s proposed meeting with Putin was then called off. Putin declared that talks with Ukraine had come to a dead end. Zelensky explained that “Moscow would like to have one treaty that would resolve all the issues. However, not everyone sees themselves at the table with Russia. For them, security guarantees for Ukraine is one issue, and the agreement with the Russian Federation is another issue.” This marked the end of bilateral Russian-Ukrainian negotiations and thus of any prospect of a resolution of the conflict anywhere but on the battlefield.

What happened and who’s winning what

This war was born in and has been continued due to miscalculations by all sides. NATO expansion was legal but predictably provocative. Russia’s response was entirely predictable, if illegal, and has proven very costly to it. Ukraine’s de facto military integration into NATO has resulted in its devastation.

The United States calculated that Russian threats to go to war over Ukrainian neutrality were bluffs that might be deterred by outlining and denigrating Russian plans and intentions as Washington understood them. Russia assumed that the United States would prefer negotiations to war and would wish to avoid the redivision of Europe into hostile blocs. Ukrainians counted on the West protecting their country. When Russian performance in the first months of the war proved lackluster, the West concluded that Ukraine could defeat it. None of these calculations have proved correct.

Nevertheless, official propaganda, amplified by subservient mainstream and social media, has convinced most in the West that rejecting negotiations on NATO expansion and encouraging Ukraine to fight Russia is somehow “pro-Ukrainian.” Sympathy for the Ukrainian war effort is entirely understandable, but, as the Vietnam War should have taught us, democracies lose when cheerleading replaces objectivity in reporting and governments prefer their own propaganda to the truth of what is happening on the battleground.

The only way you can judge the success or failure of policies is by reference to the objectives they were designed to achieve. So, how are the participants in the Ukraine War doing in terms of achieving their objectives?

Let’s start with Ukraine.

From 2014 to 2022, the civil war in Donbas took nearly 15,000 lives. How many have been killed in action since the US/NATO-Russian proxy war began in February 2022 is unknown but is certainly in the several hundreds of thousands. Casualty numbers have been concealed by unprecedentedly intense information warfare. The only information in the West about the dead and wounded has been propaganda from Kyiv claiming vast numbers of Russian dead while revealing nothing at all about Ukrainian casualties. It is known, however, that ten percent of Ukrainians are now involved with the armed forces and 78 percent have relatives or friends who have been killed or wounded. An estimated 50,000 Ukrainians are now amputees. (By comparison, only 41,000 Britons had to have amputations in World War I, when the procedure was often the only one available to prevent death. Fewer than 2,000 U.S. veterans of the Afghanistan and Iraq invasions had amputations.) Most observers believe that Ukrainian forces have taken much heavier losses than their Russian enemies and that hundreds of thousands of them have given their lives in their country’s defence and efforts to retake territory occupied by the Russians.

When the war began, Ukraine had a population of about thirty-one million. The country has since lost at least one-third of its people. Over six million have taken refuge in the West. Two million more have left for Russia. Another eight million Ukrainians have been driven from their homes but remain in Ukraine.

Ukraine’s infrastructure, industries, and cities have been devastated and its economy destroyed. As is usual in wars, corruption – long a prominent feature of Ukrainian politics – has been rampant. Ukraine’s nascent democracy is no more, with all opposition parties, uncontrolled media outlets, and dissent outlawed.

On the other hand, Russian aggression has united Ukrainians, including many who are Russian speaking, to an extent never seen before. Moscow has thereby inadvertently reinforced the separate Ukrainian identity that both Russian mythology and President Putin have sought to deny. What Ukraine has lost in territory it has gained in patriotic cohesion based on passionate opposition to Moscow.

The flip side of this is that Ukraine’s Russian-speaking separatists have also had their Russian identity reinforced. Ukrainian refugees in Russia are the hardest of hardliners demanding retribution from Kyiv. There is now little to no possibility of Russian speakers accepting a status in a united Ukraine, as would have been the case under the Minsk Accords. And, with the failure of Ukraine’s “counteroffensive,” it is very unlikely that Donbas or Crimea will ever return to Ukrainian sovereignty. As the war continues, Ukraine may well lose still more territory, including its access to the Black Sea. What has been lost on the battlefield and in the hearts of the people cannot be regained at the negotiating table. Ukraine will emerge from this war maimed, crippled, and much reduced in both territory and population.

Finally, there is now no realistic prospect of Ukrainian membership in NATO. As NSC Advisor Sullivan has said, “everyone needs to look squarely at the fact” that allowing Ukraine to join NATO at this point “means war with Russia.” NATO Secretary General Jens Stoltenberg has stated that the prerequisite for Ukrainian membership in NATO is a peace treaty between it and Russia. No such treaty is anywhere in sight. In continuing to insist that Ukraine will become a NATO member once the war is concluded, the West has perversely incentivised Russia not to agree to end the war. But, in the end, Ukraine will have to make its peace with Russia, almost certainly largely on Russian terms.

Whatever else the war may be achieving, it has not been good for Ukraine. Ukraine’s bargaining position vis-à-vis Russia has been greatly weakened. But then, Kyiv’s fate has always been an afterthought in U.S. policy circles. Washington has instead sought to exploit Ukrainian courage to thrash Russia, reinvigorate NATO, and reinforce U.S. primacy in Europe. And it has not spent any time at all thinking about how to restore peace to Europe.

How about Russia?

Has it succeeded in expelling American influence from Ukraine, forced Kyiv to declare neutrality, or reinstating the rights of Russian speakers in Ukraine? Clearly not.

For now, at least, Ukraine has become a complete dependency of the United States and its NATO allies. Kyiv is an embittered, long-term antagonist of Moscow. Kyiv clings to its ambition to join NATO. Russians in Ukraine are the targets of the local version of cancel culture. Whatever the outcome of the war, mutual animosity has erased the Russian myth of Russian-Ukrainian brotherhood based on a common origin in Kievan Rus. Russia has had to abandon three centuries of efforts to identify with Europe and instead pivot to China, India, the Islamic world, and Africa. Reconciliation with a seriously alienated European Union will not come easily, if at all. Russia may not have lost on the battlefield or been weakened or strategically isolated, but it has incurred huge opportunity costs.

Then, too, NATO has expanded to include Finland and Sweden. This does not change the military balance in Europe. Western portrayal of Russia as inherently predatory notwithstanding, Moscow has had neither the desire nor the capability to attack either of these two formerly very Western-aligned and formidably armed but nominally “neutral” states. Nor does either Finland or Sweden have any intention of joining an unprovoked attack on Russia. But their decision to join NATO is politically wounding for Moscow.

Since the West shows no willingness to accommodate Russian security concerns, if Moscow is to achieve its goals, it now has no apparent alternative to battling on. As it does so, it is stimulating European determination to meet previously ignored NATO targets for defence spending and to acquire self-reliant military capabilities directed at countering Russia independently of those of the United States. Poland is reemerging as a powerful hostile force on Russia’s borders. These trends are changing the European military balance to Moscow’s long-term disadvantage.

What about the United States?

In 2022 alone the United States approved $113 billion in aid to Ukraine. The Russian defence budget then was then less than half of that — $54 billion. It has since roughly doubled. Russian defence industries have been revitalised. Some now produce more weaponry in a month than they previously did in a year. Russia’s autarkic economy has weathered 18 months of all-out war against it from both the U.S. and the EU. It just overtook Germany to become the fifth wealthiest economy in the world and the largest in Europe in terms of purchasing power parity. Despite repeated Western claims that Russia was running out of ammunition and losing the war of attrition in Ukraine, it has not, while the West has. Ukrainian bravery, which has been hugely impressive, has been no match for Russian firepower.

Meanwhile, the alleged Russian threat to the West, once a powerful argument for NATO unity, has lost credibility. Russia’s armed forces have proven unable to conquer Ukraine, still less the rest of Europe. But the war has taught Russia how to counter and overcome much of the most advanced weaponry of the United States and other Western countries.

Before the United States and NATO rejected negotiations, Russia was prepared to accept a neutral and federalised Ukraine. In the opening phase of its invasion of Ukraine, Russia reaffirmed this willingness in a draft peace treaty with Ukraine which the United States and NATO blocked Kyiv from signing. Western diplomatic intransigence has failed to persuade Moscow to accommodate Ukrainian nationalism or accept Ukraine’s inclusion in NATO and the American sphere of influence in Europe. The proxy war seems instead to have convinced Moscow that it must gut Ukraine, keep the Ukrainian territories it has illegally annexed, and likely add more, thus ensuring that Ukraine is a dysfunctional state unable either to join NATO or to fulfil the ultranationalist, anti-Russian vision of its World War II neo-Nazi hero, Stepan Bandera.

The war has led to the superficial unity of NATO but there are obvious fissures among members. The sanctions imposed on Russia have done heavy damage to European economies. Without Russian energy supplies, some European industries are no longer internationally competitive. As NATO’s recent summit at Vilnius showed, member countries differ on the desirability of admitting Ukraine. NATO unity seems unlikely to outlast the war. These realities help explain why most of America’s European partners want to end the war as soon as possible.

The Ukraine War has clearly put paid to the post-Soviet era in Europe, but it has not made Europe in any respect more secure. It has not enhanced America’s international reputation or consolidated U.S. primacy. The war has instead accelerated the emergence of a post-American multi-polar world order. One feature of this is an anti-American axis between Russia and China.

To weaken Russia, the United States has resorted to unprecedentedly intrusive unilateral sanctions, including secondary sanctions targeting normal arms-length commercial activity that does not involve a U.S. nexus and is legal in the jurisdictions of the transacting parties. Washington has been actively blocking trade between countries that have nothing to do with Ukraine or the war there because they won’t jump on the U.S. bandwagon. As a result, much of the world is now engaged in pursuit of financial and supply-chain linkages that are independent of U.S. control. This includes intensified international efforts to end dollar hegemony, which is the basis for U.S. global primacy. Should these efforts succeed, the United States will no longer be able to run the trade and balance of payments deficits that sustain its current standard of living and status as the most powerful society on the planet.

Washington’s use of political and economic pressure to compel other countries to conform to its anti-Russian and anti-Chinese policies has clearly backfired. It has encouraged even former U.S. client states to search for ways to avoid entanglement in future American conflicts and proxy wars they do not support, like that in Ukraine. To this end, they are abandoning exclusive reliance on the United States and forging ties to multiple economic and politico-military partners. Far from isolating Russia or China, America’s coercive diplomacy has helped both Moscow and Beijing to enhance relationships in Africa, Asia, and Latin America that reduce U.S. influence in favour of their own.

To summarise:

In short, U.S. policy has resulted in great suffering in Ukraine and escalating defence budgets here and in Europe but has failed to weaken or isolate Russia. More of the same will not accomplish either of these oft-stated American objectives. Russia has been educated in how to combat American weapons systems and has developed effective counters to them. It has been militarily strengthened, not weakened. It has been reoriented and freed from Western influence, not isolated.

If the purpose of war is to establish a better peace, this war is not doing that. Ukraine is being eviscerated on the altar of Russophobia. At this point, no one can confidently predict how much of Ukraine or how many Ukrainians will be left when the fighting stops or when and how to stop it. Kyiv just failed to meet more than a fraction of its recruitment goals. Combating Russia to the last Ukrainian was always an odious strategy. But when NATO is about to run out of Ukrainians, it is not just cynical; it is no longer a viable option.

Lessons to be learned from the Ukraine war

What can we learn from this debacle? It has provided many unwelcome reminders of the basic principles of statecraft.

  • Wars do not decide who is right. They determine who is left.
  • The best way to avoid war is to reduce or eliminate the apprehensions and grievances that cause it.
  • When you refuse to hear, let alone address an aggrieved party’s case for adjustments in your policies toward it, you risk a violent reaction from it.
  • No one should enter a war without realistic objectives, a strategy to achieve them, and a plan for war termination.
  • Self-righteousness and bravery are no substitutes for military mass, firepower, and stamina.
  • In the end, wars are won and lost on the battlefield, not with propaganda inspired by and directed at reinforcing wishful thinking.
  • What has been lost on the battlefield can seldom, if ever, be recovered at the negotiating table.
  • When wars cannot be won, it is usually better to seek terms by which to end them than to reinforce strategic failure.

It is time to prioritise saving as much as possible of Ukraine. This war has become existential for it. Ukraine needs diplomatic backing to craft a peace with Russia if its military sacrifices are not to have been in vain. It is being destroyed. It must be rebuilt. The key to preserving Ukraine is to empower and back Kyiv to end the war on the best terms it can obtain, to facilitate the return of its refugees, and to use the EU accession process to advance liberal reforms and institute clean government in a neutral Ukraine.

Unfortunately, as things stand, both Moscow and Washington seem determined to persist in Ukraine’s ongoing destruction. But whatever the outcome of the war, Kyiv and Moscow will eventually have to find a basis for coexistence. Washington needs to support Kyiv in challenging Russia to recognise both the wisdom and the necessity of respect for Ukrainian neutrality and territorial integrity.

Finally, this war should provoke some sober rethinking here, in Moscow, and by NATO of the consequences of diplomacy-free, militarised foreign policy. Had the United States agreed to talk with Moscow, even if it had continued to reject much of what Moscow demanded, Russia would not have invaded Ukraine as it did. Had the West not intervened to prevent Ukraine from ratifying the treaty others helped it agree with Russia at the outset of the war, Ukraine would now be intact and at peace.

This war did not need to take place. Every party to it has lost far more than it has gained. There’s a lot to be learned from what has happened in and to Ukraine. We should study and learn these lessons and take them to heart.

 

First published by Chas W. Freeman, Jr. American diplomat, businessman, and writer September 26, 2023

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An Apolitical Public Service?

One of the ideas that was fashionable in my youth was that the public service was to be apolitical and give unbiased advice to Ministers, who would then presumably implement it.

This principle seems most challenged in the 1980s when ‘Harvard Management’ was the watchword. The facts about what was needed were presumed to be clear to the manager and his (or rarely her) job was to implement this against the inertia and ignorance of the rest of the organisation. There were workshops on ‘how to break down the culture of an organisation.’  There were articles at the time about how superior the US political system was in that the heads and significant senior level of the public service were all replaced after each electi0on so that their departmental programs followed what their new political masters wanted. 

I saw at first hand at Sydney Water the progressive replacement of managers who had risen up through the ranks and knew what they were doing by people who played office politics or were politically favoured and did not even know what they did not know.  The Liberal management imperative at the time was to slim down the organisation, and since it was a ‘government owned enterprise’ realise the profits of its activities.  In short, to sack staff from 17,000 to 2,000, and take what was formerly paid in wages as dividend.  So these wages actually became taxes because the water rates did not fall.  Stormwater pipe replacement programs were halted, the apprentice training school was closed, the employment schemes for people with disabilities, long term unemployed, and for those recently out of prison were all ceased and repairs were only done ‘when needed.’ So the relationship between the Public Service doing its job in a traditional way, and the political imperatives driven by the dogmas of the day were clearly illustrated.

At a more entertaining level, the ’Yes Minister’ series from the BBC showed the politicians being led by the nose by immutable public servants, while the more recent local ABC show ‘Utopia’ had a sensible public service being mucked around by foolish politicians. 

At the Federal Australian level, one might recall the trouble that Andrew Wilkie got into when working for the Office of National Assessment (ONA), when he alleged that the ONA was being told to find evidence that justified the war in Iraq, rather than being asked to evaluate whether such evidence was persuasive.  The Robodebt saga had public servants who seem to have been justified in their belief that if they did not implement the scheme that may well have been illegal their careers would  suffer.  That did not stop them wearing the flak later.

The dogma that the private sector knows best is only true if the Public Service has all the people with specialist knowledge given redundancy, as was the case in Sydney Water. The rise of PwC and the inability to supervise them comes from the weakening of the knowledge base of the public sector, driven by the current imperative to keep the government sector as small as possible, not that using consultants over career public servants with specific expertise actually saves any money in the medium term.

But there is politics in every organisation, from the local tennis club to the public service to international politics. (My only advice is that since all campaigns take much the same amount of energy do not waste time on small issues).  It is naive to expect people not to play politics; it is necessary for a career.  The critical thing that needs to be ensured is that the competition is fair and transparent and that the right things are rewarded.

The top echelons of the public service still have power as was demonstrated by the saga of Michael Pezzullo. He lobbied to increase the power of Home Affairs, which was of course helped by the demonisation  of boat people that had done so well for the conservative side  of politics. He then interfered in who was in Cabinet, favoured Big Tobacco, favoured recognising Jerusalem as Israel’s capital, supported a firm that was going to process visas when this was privatised, and PwC when the COVID quarantine system was to be privatised.  (It might be noted that today’s SMH which details a lot of this has frequent disclaimers, presumably to evade Australia’s rigid defamation laws).

It is ironic that the Public Service Act was revised by the Howard government in 1999 as they presided over the rise of consultants and  the politicisation of the shrinking public service. 

The difficulty of rebuilding the public service is huge. If people have expertise that they can profit from they will be reluctant to return to the public service on a lower salary, particularly as no one will any longer be sure of security of tenure.  One of the advantages of the old public service was that if your career went into an area of specialised knowledge you were not very employable in the open market but you had a job until retirement and your knowledge was respected and used in your field. This situation will be difficult to re-create.

The harms done by the dogmas of small government and neoliberalism will take a long time and a lot of thought to undo.  

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China’s Technology

The much hyped launch of the Apple iPhone 15 was presumed to announce the latest technology in phones. This presupposed that it would have the world’s best microchips, which are currently assumed to come  from TSMC (Taiwan Semiconductor Manufacturing Company).

But China’s Huawei, which is supposedly hampered by western sanctions on high-end chips has just produced a phone which seems as good or better than the Apple one.

It was commented that the Huawei phone has not had much attention in the Western mainstream media, but some reviews have said that it is actually better. Other writers have wondered (?hopefully) that the small, sold-out production run was because they did not have enough high-end chips to make more phones. 

www.johnmenadue.com/chinas-huawei-mate60-launch-set-to-challenge-iphone/

www.smh.com.au/technology/why-this-new-chinese-phone-has-rattled-the-us-20230905-p5e21c.html

Stephen Bartholomeusz in the SMH also mentions China’s dominance in EVs(Electric Vehicles). European and American car companies are unsure how to respond since they have major EV factories in China, so any tariffs will hurt them. They have moved their jobs offshore and the United Auto Workers strike in the US has the problem that there is a transfer from internal combustion engined (ICE) vehicles to EVs, as well as their wages being higher than the Chinese factories that they are competing against. It is a global world, so there are huge economic forces equalising wages across the world and favouring capital over labour.

And we had also better get used to the idea that China is going to be a world power, and any delays in achieving this will merely annoy them.  We need to accept their power, respect and trade with them and avoid any US dreams of fighting the inevitable.

www.smh.com.au/business/the-economy/how-china-sparked-chaos-in-the-world-of-cars-20230918-p5e5fn.html

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How is the Ukrainian Offensive Going?

6 September 2023

We heard a lot about how Ukraine was going to have a major offensive, which was expected to be hugely and quickly successful.  It does not seem to have been, and it is well known that it takes at least 3 times as many attackers as defenders to be successful.

Russia was defending. Russia had air superiority. Russia has 3x Ukraine’s population (143 million to 43 million), and far more industrial and military production capacity. Ukraine had not enough weapons and lots of different types of weapons from many different donors.

The silence has been deafening. Here is a military historian with a very pessimistic view, but one that seems well supported by the evidence presented.

It seems hopeless that Ukraine can capture all its lost territory including the Crimea, so it will either fall into a war of attrition which it cannot win, or have a peace imposed on it by the West when they tire of supplying more weapons and/or Ukraine simply runs out of soldiers. The Chinese peace initiative?

https://bigserge.substack.com/p/escaping-attrition-ukraine-rolls

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Qantas- What a Tale!

3 September 2023

I used to fly Qantas.  I used to go on holidays to Europe in winter, having saved my pennies from my casual student job.  I went in winter because it was Uni holidays.  (They were the days when students could actually save while at uni, if they were super frugal, worked enough hours and did not care if they did not get credits).

When the Aussie-accent welcome was spoken on Qantas, it felt like home.  But Qantas became ever more expensive, and now is often double the budget carriers.  I have remained frugal on air fares, as you can stay a week longer overseas on the difference. If you are on the same plane with the same departure and arrival times, why pay a thousand dollars for slightly more legroom, slightly more attention and a slightly better meal?  And if it is a cheaper plane that does not crash, the flying times are also much the same.

I flew on Ryan Air around Europe when Alan Joyce was in charge. The tickets were cheap, but you paid to choose your seat, were encouraged to pay to go to the head of the queue, were hassled to buy lunch, duty-free and lottery tickets even when you got on board.  There was talk of having to pay to go to the on board dunny; I don’t know if it ever happened.  I was therefore worried when Joyce got control of Qantas. The Qantas’ safety record was based on maintenance well done in Australia. That was outsourced. The prices still rose, blamed on fuel prices of course. The staff were largely retrenched with COVID, but Qantas got a lot of jobseeker money that was not repaid.  After COVID, many middle class folks have wanted to have overseas trips or see relatives (including me) and have paid top dollar for tickets. There is a shortage of flights, presumably due to a lack of staff returning to the industry, but record profits.  Luckily I have never thought much of flight credits or bought tickets for non-existent flights; this last must be more luck than management.

Qatar did not get landing rights, almost certainly to protect Qantas profits, even though Qantas is no longer an Australian government airline and after various privatisations Australians own only 51% of it.  But we will all be paying more for this denial of competition .

I was also interested to read Joyce’s background. He was a mathematician who is very good at maximising the profit from various aviation-related sales. I guess this explains the optional extras on RyanAir and the crazy price gyrations even while you are logged on trying to buy a ticket.

Australia is something of a haven for powerful industries seeking monopolies or oligopoly powers. Sydney Airport was privatised by John Howard and his chief of staff, Max (the Axe) Moore –Wilton  left to manage the buying organisation, Macquarie Airport Corporation.  Airport charges rose massively. Some airlines could not afford this and stopped flying their routes. At the time I was living in Dunedin and Sydney-Dunedin was one of the routes discontinued, so instead of a 3 hour flight from $200,  I had to fly via either Christchurch or Brisbane at more than twice the cost with stopovers as long as 13 hrs.  A huge benefit to an Aussie corporation at huge cost to the flying public, and this is totally ongoing. Airports should be a service run on a cost-recovery basis.

It is time Australia got a competition policy that stopped the supernormal profits of oligopolies, which has made Australian companies so profitable compared to overseas companies doing similar jobs, which is leading to huge number of takeovers by foreign companies and Australians further losing ownership and control of our national assets.  This Qantas nonsense has to stop.

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Power in America

11 August 2023

A provocative article argues that the US is abandoning its tradition Blue (Democrat) v. Red (Republican), and instead voting on economic lines, with the Red which were traditionally seen as the party of the rich actually getting the poor vote.

The polling shows that the Republicans are ahead in the poorer states, and the Demicrats in the wealthier and better educated states.  This is against what was assumed to be the normal situation.

Why could this be. The Democrats are in control and supported the status quo, when they rigged their last candidate, making sure that Bernie Sanders lost preselection- twice. He would almost certainly have beaten Hilary Clinton and then probably Trump, as he called for change in the same way that Trump did. He may then have beaten Biden, but the Democrat establishment put up Biden, who was effectively the status quo.

Trump’s policies, if they can be called such, seemed mainly to tell the Establishment to go to hell and promise to send it there. It was populist nonsense in that no serious policies underwrote it in terms of real benefits to poorer people.  But if you think that governments are voted out, rather than oppositions being voted in, Trump’s demagoguery has a certain logic.

Trump is, to many people inside and outside the USA, a proven crook, and many US Democrats hope that the legal process will make him ineligible to stand again, assuming he wins the Republican nomination, which looks likely. One might even wonder if there would be revolutionary forces who might try to rescue him from goal. If they can storm Congress, why not a gaol?

The fact that the Republicans can have a majority in poorer areas, despite having an anti-welfare agenda seems to show the pre-eminence of populism, the Democrats being the Established Order. The fact that Biden is the figurehead, and the Democrats seem unable to find anyone to replace him is a worry. The Republicans will target his health if he stands again. The Democrats will say that he is very healthy, and the rest of us will cross our fingers and hope his cerebral arteries last until the election at least.

The middle class is hollowed out and it is the 1% v the 99%. This is what Marx predicted, but more this is the logic of every Monopoly game- in an unregulated market the rich get richer and the poor get poorer.  We have been playing Monopoly since the end of WW2 and small government and deregulation has been the dominant neo-liberal paradigm.

What happens in the US will hugely affect the world, both directly, but also in the way it sets trends. It is not even a new trend. Populist right wing governments are rising in many countries, Poland, Italy, Hungary, India and Turkey. France and Germany have seen a strengthening of the Right. Military dictators have seized power in a number of African states.  There does not seem much evidence that these populist strong men have made much progress in solving the problems that led to their rise to power, but having a real argument about this statement would require a lot of research.

But the US is in real trouble, and the lack of discussion of the rising inequality and what is to be done about it may well be at the core of the problem.

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Reasons for the Rise of Ignorance

7 August 2023

I have spent some time wondering why ignorance seems to be growing. Decisions seem to be made without regard to the facts.  This seems particularly bad when some sort of scientific knowledge is required.

Years ago it was assumed that if knowledge was readily available all decision making would improve, but it seems that the opposite is the case. Some years, following the lack of implementation of policy in response to the knowledge of the harm of tobacco, I was inclined to blame disinformation from vested interests and the fact that media courses were arts-based, so that the vast bulk of journalists knew little science. Then there was the significant effect that advertising had on the contents of the media.

Vested interests do a great job. First they blatantly deny the facts. Then it is reported as ‘controversial’ (‘cos they made the ‘controversy’). Then it is portrayed as uncertain or unproven because it is controversial.

But I think there are other elements:

  1. The specialisation of knowledge, so that students can choose or not choose their subjects very early as part of ‘freedom’ so can have an apparently full education with complete unawareness of what they do not know.
  2. The internet and social media have allowed people to meet people who think as they do, and divide them from those who do not, in order to keep them on the program, so they can market to them. So people are helped in their choice to restrict their knowledge input.
  3. There has been an increasing gap between those who have money and power and those who have knowledge. This is partly due to the idea that you do not have to know about something to ‘manage’ it (a 1980s Harvard idea that persists as it is convenient to managers), and partly because of the egos of those who make a lot of money and therefore think that they are exceptional and that scientists are not important because they have not made money.
  4. It may also be that the drop in equality of opportunity has led to people who have worked only in the political realm rising to power without an understanding of science (or indeed social issues).

Here is an article from the NY Times and SMH on this issue.

Opinion

The paranoia of the tech plutocrats

By Paul Krugman

Peter Hotez, a leading vaccine scientist and a frequent target of anti-vaxxer harassment, recently expressed some puzzlement in a post on X, formerly known as Twitter. He noted that many of those taunting him were also “big time into bitcoin or cryptocurrency” and declared that “I can’t quite connect the dots on that one.”

OK, I can help with that. Also, welcome to my world.

If you regularly follow debates about public policy, especially those involving wealthy tech bros, it’s obvious that there’s a strong correlation among the three Cs: climate denial, COVID-19 vaccine denial and cryptocurrency cultism.

There’s a strong correlation among the three Cs: climate denial, COVID-19 vaccine denial and cryptocurrency cultism.

I’ve written about some of these things before, in the context of Silicon Valley’s enthusiasm for Robert F Kennedy Jr. But in the light of Dr Hotez’s puzzlement — and also the rise of Vivek Ramaswamy, another crank, who won’t get the GOP nomination but could conceivably become Donald Trump’s running mate — I want to say more about what these various forms of crankdom have in common and why they appeal to so many wealthy men.

The link between climate and vaccine denial is clear. In both cases, you have a scientific consensus based on models and statistical analysis. But the evidence supporting that consensus isn’t staring people in the face every day. You say the planet is warming? Hah! It snowed this morning! You say that vaccination protects against COVID? Well, I know unvaccinated people who are doing fine, and I’ve heard (misleading) stories about people who had cardiac arrests after their shots.

Anti-vax agitation and crypto enthusiasm are both aspects of a broader rise of know-nothingism, one whose greatest strength lies in an intellectually inbred community of very wealthy men.

To value the scientific consensus, in other words, you have to have some respect for the whole enterprise of research and understand how scientists reach the conclusions they do. This doesn’t mean that the experts are always right and never change their minds. They aren’t, and they do. For example, in the early stages of the COVID pandemic, top health officials opposed widespread masking, but they reversed course in the face of persuasive evidence because that’s what serious scientists do.

You can understand how the person in the street might not get what scientific research is all about. But you might think that businesspeople, especially those who’ve made money in technology, would appreciate the value of research and technical expertise. And many do.

But there are forces working in the opposite direction. Success all too easily feeds the belief that you’re smarter than anyone else, so you can master any subject without working hard to understand the issues or consulting people who have; this kind of arrogance may be especially rife among tech types who got rich by defying conventional wisdom.

The wealthy also tend to surround themselves with people who tell them how brilliant they are or with other wealthy people who join them in mutual affirmation of their superiority to mere technical drones.

So, where does cryptocurrency come in? Underlying the whole crypto phenomenon is the belief by some tech types that they can invent a better monetary system than the one we currently have, all without talking to any monetary experts or learning any monetary history. Indeed, there’s a widespread belief that the generations-old system of fiat money issued by governments is a Ponzi scheme that will collapse into hyperinflation any day now. Hence, for example, Jack Dorsey’s 2021 declaration that “hyperinflation will change everything. It’s happening.”

Now, I’m quite willing to admit that monetary economics isn’t as solid a science as epidemiology or climatology. And yes, even noncrank economists argue about some big issues much more than their hard-science counterparts.

But economics nonetheless is, as John Maynard Keynes wrote, “a technical and difficult subject” — one on which you shouldn’t make pronouncements without studying quite a lot of theory and history — although “no one will believe it.”

Certainly, people who think they understand climate better than climatologists and vaccines better than public health researchers are also likely to think they understand money better than economists and to believe in each case that experts telling them that the world doesn’t work the way they think it does are engaged in some kind of hoax or conspiracy.

Sure enough, much of the recent turmoil in the crypto industry has had economists wondering: Didn’t these people look into the theory and history of bank runs? And the answer, of course, is that they didn’t think they needed to.

True, there have always been wealthy cranks. Has it gotten any worse?

I think it has. Thanks to the tech boom, there are probably more wealthy cranks than there used to be, and they’re wealthier than ever, too. They also have a more receptive audience in America in the form of a Republican Party whose confidence in the scientific community has collapsed since the mid-2000s.

So, in answer to Hotez, the dots are indeed connected. Anti-vax agitation and crypto enthusiasm are both aspects of a broader rise of know-nothingism, one whose greatest strength lies in an intellectually inbred community of very wealthy men.

This article originally appeared in The New York Times, then the SMH September 1, 2023

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Corruption and the Law

8 July 2023

I am no fan of our legal system. My view is that is a money-making talkfest, a debating plaything with justice when it is achieved, in no way cost effective.  It is hugely stacked towards the rich and powerful, cumbersome and petty pedantic and it leaves huge issues of justice unacknowledged and unaddressed.

Many years ago the Non-Smokers Movement tried to stop tobacco sponsorship advertising on TV. It was perfectly obvious that Marlboro was a major sponsor of the Australian Grand Prix in Melbourne, that all the cars and signs were set up for a TV extravaganza of Marlboro exposure on Channel 9. Non-Smokers Movement had been going about 20 years trying to get rid of tobacco and smoking.  We presented all the evidence with photos of what had been set up the livery of the cars. The judge ruled that we did not have ‘standing’ to bring the case as we would not lose money from the telecast, because we did not have an ‘interest’. An ‘interest’ equalled money, and we were considered lucky that the judge allowed us to present the case as he knew we did not have an ‘interest’ or ‘standing’.  Be grateful for crumbs- we got the publicity, though of course the telecast went ahead, and they were awarded their costs (which in fairness Kerry Packer did not demand).

When I was in Parliament a whistle-blower nurse, Nola Fraser was on 4 Corners making allegations that there was a big problem with health care in Campbelltown and Camden Hospitals.  She was relatively senior nurse, who was sometimes night supervisor at Camden.  I contacted her and she told me about the corruption in the hospital.  She had over a hundred reports, some details on about 70, the names of about 35, reasonable detail of about 15, and a lot of information on about 7 cases.  Her stories were credible. The patients were dying because doctors were not available, trying to cover both the ED and the wards at the same time, or in theory on call at two hospitals at the same time, and ambulance protocols had resulted in at least one death, as inter-hospital transfers were low priority, but resulted in a lessening of interest at Camden, as the patient was ‘about to go’.  She had tried to speak to senior management as the ‘case conference’ meetings produced no results, and management had referred her to an officer who could not do anything but refer her back to the senior management in a sort of endless fob-off merry-go-round.  She used the word ‘corrupt’.  I asked her if she meant a corrupt process or if some of the hospital staff were on the take.  ‘No’, she assured me, ‘they are not making any money, it’s a corrupt process; they are supposed to be helping people, but they are killing them and covering it up’.  Clear enough.

I initiated a process which led to an inquiry on the complaints system within NSW Health and concentrated on Campbelltown and Camden Hospitals.  She was a major witness; a lot of problems were found and South Western Sydney Area Health Service got an extra $360 million in the following year’s budget.  But it went further. NSW ICAC initiated an inquiry to look at Nola’s allegation of corruption.  Unfortunately I did not follow the mechanics of this closely enough.  After an inquiry for some time at a cost of $1.3 million, Nola Fraser was excoriated as a person of no credibility as she had not proved her allegation of ‘corruption’ against the senior staff.  But no one had asked the obvious question; what did she mean by corruption?  She was talking about process; they could only think of money- the legal definition.  After the sanctimonious verdict, her life was largely destroyed.  What use was the legal system in getting justice?  Nil.

Now we have findings of corruption against Gladys Berejeklian, who had been brought up in a rather sexually sheltered domestic environment and then chose a dodgy boyfriend and protected him. (SMH 30/6/23) No corruption there as she did not personally gain any money?  It is up to NSW ICAC.

Of course the other big news this week is the Robo-debt Royal Commission. (SMH 8/7/23) Morrison started it; Attorney-General Christian Porter knew about it, and Ministers Alan Tudge (alleged sexual harasser) and Stuart Robert (Morrison loyalist, corporate enabler and generally recognised incompetent) were also responsible. Presumably none of them made any money from the Robo-debt scheme, so they were not corrupt and cannot be prosecuted?  We will see.  The sealed section of the report apparently makes recommendations to the NACC, but can they act on this in the legal system we have?  It is said that there are 4 to be referred to NACC, and the Commissioner waited until NACC was established to release her report, which means that she wants some consequences.  But we have National Anti-Corruption Commission (NACC) chief Paul Brereton saying ‘It is possible for conduct to be corrupt but not criminal’.  Sure is. But does this mean that there is no prosecution no matter how dodgy the politicians allocating the money are?  Looks like it. Endless ‘discretion’?

One other tricky little question will come out in all this- will the public servants be prosecuted? They did not give ‘frank and fearless’ advice and at least some of them knew it was not legal, or might not be.  Probably they knew that it was going to happen anyway, and their own careers would be adversely affected if they made a fuss.  It is very likely that they were correct in this last opinion.  Does the Public Service Act compel them to be honest when there is no such compulsion for politicians? I note the article in The Saturday Paper speaks about public servants being ‘sanctioned’ for breaching the ‘code of conduct’. Sounds like being hit by a wet lettuce- possibly bad for your career in the short term.

The relationship between the public service and political system is interesting. The British comedy series ‘Yes Minister’ showed the public service as foolish. The more relevant Australian series ‘Utopia’ shows it the other way around. Who should have the power and how much?

Years ago the NSW Electricity Commission decided that NSW needed to commission a number of new coal-fired power stations to open every few years to meet projected energy demand. They were engineers and would obviously have work for their working lives implementing this project. Electricity demand did not rise as anticipated and at one time, NSW had generating capacity of 76% greater than peak load.  No accountability, no transparency, no discussion.

In the 1980s I worked at Sydney Water and one morning, when in the foyer waiting for a lift, the man standing next to me said, ‘This is the time of day I hate’.  I asked why and he said, ‘When I get to the office I will have to look at the fax machine and see what the Minister has thought of overnight and what I will have to deal with.’  (The Minister was Tim Moore, who was a relatively environmentally active in the Greiner government).  Gradually engineers who had come up the ranks were replaced by politically active managers, who knew nothing about water or sewerage, and staff numbers were cut from 17,500 to about 3,000 staff.  The new managers supervised private contractors, the infrastructure upgrades ceased, no apprentice training was done, no unemployment programs ran, and people with lifetime expertise in niche areas were made redundant.  Large ‘dividends’ from the ‘State owned enterprise’ were put in state coffers. Politicisation was complete by the early 1990s. This happened all over the public service, Federal and State. We have gone from one extreme to the other.

An article on the ABC asked if economists were to blame for Robo-debt, having decided that a certain level of unemployment was necessary to stop inflation. The obligation for governments to achieve full employment was lost, and as government got smaller and welfare was seen as an evil, those who could not get jobs are demonised.  I have written before about the 8 ‘apartheid buses’ that take children from our wealthy suburb to private schools. They make it possible for wealthy kids to avoid contact with much of society. From private schools to universities to political jobs- where is the reality contact? Religion may play a part too.  The world is full of sinners who will be judged and rewarded of punished in the end, so there are ‘deserving’ and ‘undeserving’.  Just as God has all wisdom, so does the neo-liberal market.  The system that allocates resources in a medieval market model, where the townsfolk choose which vegetables to buy, is now assumed to optimally distribute resources with any interference to the model being seen as a disturbance of the natural order of things.  Those who can accept that God must decide whatever the consequences seem to find it easy to believe that the market will sort out jobs and income distribution, and they judge the deserving and undeserving.

I am postulating an out of touch, judgemental government exercising its discretion, creating Robo-debt as the implementation of a philosophy.  Now, what is the crime in this crass stupidity, and what remedy does the legal system or other system in our society have for this folly?  I am not hopeful that there will be significant sanction on either politicians or public servants, though I think the former are far more guilty.  I fear that after a lot of tut-tutting and few resignations from powerful positions, there will be assurances that it can never happen again, but there will be no preventive program for next time either. The only hope is for greater transparency, though Labor’s Liberal-lite policy seems against even that.

NACC at least exists now, so we will see what can be done. Helen Haines, the Independent for Indi who pressed for the NACC has an article in the Saturday Paper of 8/7/23 that urges continual vigilance and effort.

www.thesaturdaypaper.com.au/news/politics/2023/07/06/robo-debt-breaking-news

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Putin, Prigozhin and Ukraine

30 June 2023

We hear about the NATO-supported Ukraine counteroffensive, but it seems to have taken very little actual territory. It is well-known that it is easier to defend than to attack, and the Russians key objective that may be seen as ‘existential’ for them is to have a land bridge to the naval base at Sevastopol in Crimea.

There has been a lot of commentary about Putin appearing weak, and thus having an inevitable fall. This may or may not be true, but the Ukrainian advance seems minimal.

Seymour Hersh is a highly respected US journalist who won the Pulitzer Prize for his reporting of the My Lai massacre in the Vietnam war and more recently had highly credible story about how the US blew up the Russia to Germany gas pipeline in the North Sea.

He has a website.  Here is his article on what happened in Russia. It is sobering reading

PRIGOZHIN’S FOLLY

The Russian ‘revolt’ that wasn’t strengthens Putin’s hand

Seymour Hersh Jun 29

The Biden administration had a glorious few days last weekend. The ongoing disaster in Ukraine slipped from the headlines to be replaced by the “revolt,” as a New York Times headline put it, of Yevgeny Prigozhin, chief of the mercenary Wagner Group.

The focus slipped from Ukraine’s failing counter-offensive to Prigozhin’s threat to Putin’s control. As one headline in the Times put it, “Revolt Raises Searing Question: Could Putin Lose Power?” Washington Post columnist David Ignatius posed this assessment: “Putin looked into the abyss Saturday—and blinked.”

Secretary of State Antony Blinken—the administration’s go-to wartime flack, who weeks ago spoke proudly of his commitment not to seek a ceasefire in Ukraine—appeared on CBS’s Face the Nation with his own version of reality: “Sixteen months ago, Russian forces were . . . thinking they would erase Ukraine from the map as an independent country,” Blinken said. “Now, over the weekend they’ve had to defend Moscow, Russia’s capital, against mercenaries of Putin’s own making. . . . It was a direct challenge to Putin’s authority. . . . It shows real cracks.”

Blinken, unchallenged by his interviewer, Margaret Brennan, as he knew he would not be—why else would he appear on the show?—went on to suggest that the defection of the crazed Wagner leader would be a boon for Ukraine’s forces, whose slaughter by Russian troops was ongoing as he spoke. “To the extent that it presents a real distraction for Putin, and for Russian authorities, that they have to look at—sort of mind their rear as they’re trying to deal with the counter offensive in Ukraine, I think that creates even greater openings for the Ukrainians to do well on the ground.”

At this point was Blinken speaking for Joe Biden? Are we to understand that this is what the man in charge believes?

We now know that the chronically unstable Prigozhin’s revolt fizzled out within a day, as he fled to Belarus, with a no-prosecution guarantee, and his mercenary army was mingled into the Russian army. There was no march on Moscow, nor was there a significant threat to Putin’s rule.

Pity the Washington columnists and national security correspondents who seem to rely heavily on official backgrounders with White House and State Department officials. Given the published results of such briefings, those officials seem unable to look at the reality of the past few weeks, or the total disaster that has befallen the Ukraine military’s counter-offensive.

So, below is a look at what is really going that was provided to me by a knowledgeable source in the American intelligence community:

“I thought I might clear some of the smoke. First and most importantly, Putin is now in a much stronger position. We realized as early as January of 2023 that a showdown between the generals, backed by Putin, and Prigo, backed by anti-Russian extremists, was inevitable. The age-old conflict between the ‘special’ war fighters and a large, slow, clumsy, unimaginative regular army. The army always wins because they own the peripheral assets that make victory, either offensive or defensive, possible. Most importantly, they control logistics. special forces see themselves as the premier offensive asset. When the overall strategy is offensive, big army tolerates their hubris and public chest thumping because SF are willing to take high risk and pay a high price. Successful offense requires a large expenditure of men and equipment. Successful defense, on the other hand, requires husbanding these assets.

“Wagner members were the spearhead of the original Russian Ukraine offensive. They were the ‘little green men’. When the offensive grew into an all-out attack by the regular army, Wagner continued to assist but reluctantly had to take a back seat in the period of instability and readjustment that followed. Prigo, no shy violet, took the initiative to grow his forces and stabilize his sector.

“The regular army welcomed the help. Prigo and Wagner, as is the wont of special forces, took the limelight and took the credit for stopping the hated Ukrainians. The press gobbled it up. Meanwhile, the big army and Putin slowly changed their strategy from offensive conquest of greater Ukraine to defense of what they already had. Prigo refused to accept the change and continued on the offensive against Bakhmut. Therein lies the rub. Rather than create a public crisis and court-martial the asshole [Prigozhin], Moscow simply withheld the resources and let Prigo use up his manpower and firepower reserves, dooming him to a stand-down. He is, after all, no matter how cunning financially, an ex-hot dog cart owner with no political or military accomplishments.

“What we never heard is three months ago Wagner was cycled out of the Bakhmut front and sent to an abandoned barracks north of Rostov-on-Don [in southern Russia] for demobilization. The heavy equipment was mostly redistributed, and the force was reduced to about 8,000, 2,000 of which left for Rostov escorted by local police.

“Putin fully backed the army who let Prigo make a fool of himself and now disappear into ignominy. All without raising a sweat militarily or causing Putin to face a political standoff with the fundamentalists, who were ardent Prigo admirers. Pretty shrewd.”

There is an enormous gap between the way the professionals in the American intelligence community assess the situation and what the White House and the supine Washington press project to the public by uncritically reproducing the statements of Blinken and his hawkish cohorts.

The current battlefield statistics that were shared with me suggest that the Biden administration’s overall foreign policy may be at risk in Ukraine. They also raise questions about the involvement of the NATO alliance, which has been providing the Ukrainian forces with training and weapons for the current lagging counter-offensive. I learned that in the first two weeks of the operation, the Ukraine military seized only 44 square miles of territory previously held by the Russian army, much of it open land. In contrast, Russia is now in control of 40,000 square miles of Ukrainian territory. I have been told that in the past ten days Ukrainian forces have not fought their way through the Russian defenses in any significant way. They have recovered only two more square miles of Russian-seized territory. At that pace, one informed official said, waggishly, it would take Zelensky’s military 117 years to rid the country. of Russian occupation.

The Washington press in recent days seems to be slowly coming to grips with the enormity of the disaster, but there is no public evidence that President Biden and his senior aides in the White House and State Department aides understand the situation.

Putin now has within his grasp total control, or close to it, of the four Ukrainian oblasts—Donetsk, Kherson, Lubansk, Zaporizhzhia—that he publicly annexed on September 30, 2022, seven months after he began the war. The next step, assuming there is no miracle on the battlefield, will be up to Putin. He could simply stop where he is, and see if the military reality will be accepted by the White House and whether a ceasefire will be sought, with formal end-of-war talks initiated. There will be a presidential election next April in Ukraine, and the Russian leader may stay put and wait for that—if it takes place. President Volodymyr Zelensky of Ukraine has said there will be no elections while the country is under martial law.

Biden’s political problems, in terms of next year’s presidential election, are acute—and obvious. On June 20 the Washington Post published an article based on a Gallup poll under the headline “Biden Shouldn’t Be as Unpopular as Trump—but He Is.” The article accompanying the poll by Perry Bacon, Jr., said that Biden has “almost universal support within his own party, virtually none from the opposition party and terrible numbers among independents.” Biden, like previous Democratic presidents, Bacon wrote, struggles “to connect with younger and less engaged voters.” Bacon had nothing to say about Biden’s support for the Ukraine war because the poll apparently asked no questions about the administration’s foreign policy.

The looming disaster in Ukraine, and its political implications, should be a wake-up call for those Democratic members of Congress who support the president but disagree with his willingness to throw many billions of good money after bad in Ukraine in the hope of a miracle that will not arrive. Democratic support for the war is another example of the party’s growing disengagement from the working class. It’s their children who have been fighting the wars of the recent past and may be fighting in any future war. These voters have turned away in increasing numbers as the Democrats move closer to the intellectual and moneyed classes.

If there is any doubt about the continuing seismic shift in current politics, I recommend a good dose of Thomas Frank, the acclaimed author of the 2004 best-seller What’s the Matter with Kansas? How Conservatives Won the Heart of America, a book that explained why the voters of that state turned away from the Democratic party and voted against their economic interests. Frank did it again in 2016 in his book Listen, Liberal: Or, Whatever Happened to the Party of the People? In an afterword to the paperback edition he depicted how Hillary Clinton and the Democratic Party repeated—make that amplified—the mistakes made in Kansas en route to losing a sure-thing election to Donald Trump.

It may be prudent for Joe Biden to talk straight about the war, and its various problems for America—and to explain why the estimated more than $150 billion that his administration has put up thus far turned out to be a very bad investment.

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