Yes, It Was An ‘Evil Empire’


cathey1

Reason‘s December special issue marks the 30th anniversary of the collapse of the Soviet Union. This story is part of our exploration of the global legacy of that evil empire, and our effort to be certain that the dire consequences of communism are not forgotten.

It was the summer of 1983, and I, a Soviet émigré and an American in the making, was chatting with the pleasant middle-aged woman sitting next to me on a bus from Asbury Park, New Jersey, to Cherry Hill. Eventually our conversation got to the fact that I was from the Soviet Union, having arrived in the U.S. with my family three years earlier at age 17. “Oh, really?” said my seatmate. “You must have been pretty offended when our president called the Soviet Union an ‘evil empire’! Wasn’t that ridiculous?” But her merriment at the supposed absurdity of President Ronald Reagan’s recent speech was cut short when I somewhat sheepishly informed her that I thought he was entirely on point.

In 1983, the 61-year-old empire looked like it would be eternal. My next memorable conversation about the Soviet Union with a fellow passenger, in December 1991, proved otherwise. I was aboard a flight from Moscow to Newark, New Jersey, after a two-week visit, waiting for takeoff. “Do you know that the Soviet Union doesn’t exist anymore?” the man next to me said. I stared. He showed me that day’s International Herald Tribune with a headline about the Belovezha Accords, an agreement by which the leaders of Russia, Ukraine, and Belarus agreed to dissolve the USSR.

The evil empire was over.

The Gulag Empire

The woman on the bus in 1983 did not surprise me. By then, I had already met many Americans for whom “anti-Soviet” was almost as much of a pejorative as it had been in the pages of Pravda, the official newspaper of the Soviet Communist Party. My favorite was a man in the café at the Rutgers Student Center who shrugged off the victims of the gulag camps by pointing out that capitalism kills people too—with cigarettes, for example. When I recovered from shock, I told him that smoking was far more ubiquitous in the Soviet Union, and anti-smoking campaigns far less developed. That momentarily stumped him.

My mother was also at Rutgers at the time as a piano instructor. She once got into a heated argument over lunch with a colleague and friend after he lamented America’s appalling treatment of the old and the sick. She ventured that, from her ex-Soviet vantage point, it didn’t seem that bad. “Are you telling me that it’s just as bad in the Soviet Union?” her colleague retorted, only to be dumbstruck when my mother clarified that, actually, she meant it was much worse. She tried to illustrate her point by telling him about my grandmother’s sojourn in an overcrowded Soviet hospital ward: More than once, when the woman in the next bed rolled over in her sleep, her arm flopped across my grandma’s body. Half-decent care required bribing a nurse, and half-decent food had to be brought from home. My mother’s normally warm and gracious colleague shocked her by replying, “I’m sorry, but I don’t believe you.” Her perceptions, he told her, were obviously colored by antipathy toward the Soviet regime. Eventually, he relented enough to allow that perhaps my grandmother did have a very bad experience in a Soviet hospital—but surely projecting it onto all of Soviet medicine was uncalled for.

It wasn’t just the campus lefties. The Twitter generation may believe that mainstream American culture at the time was in the grip of Reaganite anti-communism, but some of us remember differently. Media coverage of Soviet human rights abuses, for instance, was frequently accompanied by reminders that the United States and the Soviet Union simply had “fundamentally different perceptions of human rights,” as U.S. News & World Report put it in 1985: “To the Kremlin, human rights are associated primarily with the conditions of physical survival.” A 1982 guide for high school study of human rights issued by the National Council for Social Studies even suggested that it was “ethnocentric” to regard “our” definition of human rights as superior to “theirs.”

As Soviet society began to open up under Mikhail Gorbachev’s policy of glasnost (a term that means something like “openness and transparency,” and that one Soviet dissident defined as “a tortoise crawling towards freedom of speech”), more information began to come out in the Soviet press that cast serious doubt on the Soviet Union’s supposed gains on the social welfare side of “human rights.” There were stories about the dismal state of Soviet medicine, about crime, about millions condemned to appalling living conditions, about Dickensian orphanages sheltering abused and malnourished children, and about homeless people who suddenly turned out to exist, despite prior reports to the contrary. (The weekly newspaper Argumenty i Fakty reported that 174,000 vagrants were picked up in 1984 alone.) Meanwhile, the regime was crumbling; as satirist Victor Shenderovich put it later, “the country still had Soviet power but the food had already run out.”

In just a few years, Soviet communism was relegated, just as Reagan had predicted to much ridicule, to “the ash heap of history.” The leaders of the new Russia that emerged in its place themselves echoed the language of “evil empire” when they spoke of the Soviet past: During the 1996 elections, President Boris Yeltsin told supporters at a campaign rally they had to win “so that Russia can never be called an evil empire again.”

For leftists who still saw communism as a noble dream, this was a devastating defeat. In 1999, at the close of what was, in a very real sense, the Soviet century, the Polish-American socialist journalist Daniel Singer—himself the son of a gulag survivor—wrote in The Nation that a reckoning with communist atrocities was necessary; but he also rejected the “corpse-counting” of The Black Book of Communism, a collection of historical essays that sought to chronicle those atrocities. Singer took the authors to task for reducing communism’s record to “crimes, terror and repression.”

“The Soviet Union did not rest on the gulag alone. There was also enthusiasm, construction, the spread of education and social advancement for millions,” Singer asserted, lamenting that the Black Book approach made it impossible to “comprehend why millions of the best and brightest rallied behind the red flag or…turned a blind eye to the crimes committed in its name.” (It was apparently not satisfying to answer with the pithy phrase coined by statistician and essayist Nassim Nicholas Taleb: Because they were “intellectuals-yet-idiots.”)

As the new century rolled onward, the Soviet Union was still dead, but it turned out to be an unquiet ghost. The new man at Russia’s helm, career KGB officer Vladimir Putin, brought back the Soviet anthem (albeit with new lyrics about God and Russian greatness) and the red flag as the Russian Armed Forces banner, working to make Soviet nostalgia respectable—albeit in a weird blend with Russian nationalism, Orthodox Christianity, and reverence for the czars. An idealized image of Soviet communism also bubbled back up among progressives in the West, especially after the reputation of democratic capitalism was left tarnished by the war in Iraq and the Great Recession. “Neoliberalism” was out; “socialism” was in: From 2010 onward, 49 percent or larger portions of Democrats and Democratic-leaning independents and of adults under 30 have said they have a positive view of socialism. By the end of the decade, even communism was surging in popularity: It was viewed favorably by 36 percent of millennials (up from 28 percent in 2018) and 28 percent of Generation Z.

Soviet-style communism is also getting favorable press in progressive venues—from the trollish Chapo Trap House podcast to Salon (“Why you’re wrong about Communism”) to radical chic playpen Teen Vogue, which hailed Karl Marx for his 200th birthday in 2018 as a thinker who “inspired social movements in Soviet Russia, China, Cuba.” On the opinion pages of The New York Times, Kristen Ghodsee, a professor of Russian and East European studies at the University of Pennsylvania, dubiously declared that women had better sex under Soviet-style socialism, a thesis she then expanded into a slim book lauding communist strides toward gender equality. Even The New Republic, once a bastion of liberal anti-communism, jumped on the bandwagon in 2016 with “Who’s Afraid of Communism?” by former Occupy Wall Street activist Malcolm Harris, who zinged Hillary Clinton for her old-fashioned Cold Warrior mentality and argued that communism was getting a bum rap, given the Soviet Union’s heroic role in the victory over Nazism and the key contributions of communists to “liberation” struggles all over the world.

On social media today, “tankies” with hammer-and-sickle emojis in their usernames and Marx or Lenin profile headers are a loud and proud faction of lefty Twitter. These are overwhelmingly young people, in their 20s and sometimes late teens, steeped in the racial and sexual identity politics of their generation of activists, often sporting gender pronouns and rainbow flags in their bios along with the communist symbology. Many seem convinced that actual Soviet-style communism—not just the “hasn’t been tried” utopian ideal—was an admirable vision. “The more I read about the Soviet Union the more obvious it becomes why the west had to demonize it,” writes a “queer,” “anti-imperialist” Twitter user with the colorful moniker “hezbolleninism.” “The USSR’s ideology was not only a threat to capitalism, it was a threat to white supremacy.”

A Picture of Prejudice

Not surprisingly, like the 20th century “political pilgrims” (as author Paul Hollander called them) who traveled to the Soviet Union or Cuba and came back with glowing reports, the 21st century communist nostalgics often have a tenuous connection with reality.

Hezbolleninism’s tweet, for example, featured a screenshot from the 2018 book Politics and Pedagogy in the ‘Post-Truth’ Era: Insurgent Philosophy and Praxis (Bloomsbury Academic) by Derek R. Ford, a professor of education studies at DePauw University in Indiana, discussing anti-racism in the Soviet Union. Ford describes a 1930 incident involving “Robert Robertson, a Jamaican native and U.S. citizen” who came to work at a tractor factory in Stalingrad alongside a few hundred white American technicians. (The Soviets were strenuously recruiting foreign and especially American specialists, since Lenin’s prediction that the new regime would quickly train its own cadre with proletarian backgrounds and impeccable Bolshevik convictions had proved a tad overconfident.) On his first day, the black worker was roughed up by two white Americans when he tried to eat in the American dining hall. The assault was widely publicized and denounced at factory meetings around the Soviet Union; the attackers were convicted of “white chauvinism” at a show trial and sentenced to two years of imprisonment (commuted to 10 years banishment from the Soviet Union). “Robertson remained in the Soviet Union, where he eventually gained citizenship,” reports Ford, for whom this episode demonstrates “the seriousness with which the Soviet Union—its people and its state—took racism.”

But Ford left out the end of the story. After becoming a Soviet citizen, Robinson (yes, Ford got the name wrong) spent decades trying to get out of the supposed anti-racist paradise. He finally managed it in 1974, when he obtained permission to travel to Uganda as a tourist and never returned. He eventually made it to the U.S., regained his citizenship in 1986, and wrote a scathingly anti-Soviet 1988 memoir titled Black on Red. Robinson conceded that the Soviet Union gave him professional opportunities he probably would not have had as a black American in that era. But he also described the ordeal of the Great Terror, when his friends and colleagues were disappearing one after another, as well as casual and not-so-casual encounters with racism.

Robinson’s Soviet saga is richly illustrative of Soviet “anti-racism,” deployed almost exclusively as a weapon with which to bludgeon the Americans (and more generally the West). Black people were useful insofar as they advanced the communist cause, but they were treated more as white-savior projects than as human beings in their own right.

Likewise, the African students who began to attend Soviet universities in the 1960s as part of the USSR’s outreach to newly decolonized African countries tended to be viewed by their hosts as backward, needy, and often ungrateful recipients of Soviet largesse. In a fascinating 2014 article in the journal Diplomatic History, Russian studies scholar and podcaster Sean Guillory writes that the Africans were given insultingly easy entrance exams with elementary school–level math problems, while their complaints of racist harassment were generally shrugged off as hypersensitivity bred by colonialist oppression. Meanwhile, grassroots Soviet humor generated its share of extremely nasty jokes (which circulated freely at my school in the 1970s) depicting the Soviet Union’s African guests as simple-minded savages, perpetually horny for white women and literally related to monkeys.

Anti-black racism was just part of a bigger picture of prejudice. As early as 1926, the Soviet regime began to plan the removal of ethnic Koreans living in the Soviet Far East, who were seen as a threat who might work with the Japanese to undermine the Soviet Union. Deportations began slowly, until 170,000 people were forcibly moved to Central Asia in 1937. While parallels to the internment of Japanese Americans in the United States are obvious, the Soviet version was far deadlier: estimates of the death toll from malnutrition, illness, and exposure (with the deportees transported in unheated cargo cars in cold weather and resettled in hastily constructed barracks or huts) range from 16,500 to 50,000. This ethnic cleansing was followed by others in the 1940s: Kalmyks, Crimean Tatars, Chechens, and other ethnicities were collectively branded as Nazi collaborators and brutally relocated. Some were allowed to return after Josef Stalin’s death; others, such as the Crimean Tatars, were not.

Anti-Asian prejudice soared after the Sino-Soviet split, with rabid propaganda depicting the Chinese as the ultimate enemy and generating genuine paranoia about a Chinese invasion. As often happens, anyone who looked Chinese was fair game. My mother once heard a shopper at a Moscow farmers market shout to a vendor, “You! Chinaman! How much for your apples?” When the vendor defensively replied that he was Kazakh, the woman retorted, “Yeah, I know you’re not a Chinaman. If I thought you were, I’d bash your head in.”

And that’s not to mention the anti-Semitism that culminated in the campaign against “cosmopolitans” and Zionists in Stalin’s final years, but continued in more low-key ways for decades after that. Discrimination against Jews in college admissions was so common that it was reflected in numerous jokes (e.g., one in which an ethnic Russian taking a college entrance history exam is asked for the year of the sinking of the Titanic while a Jewish applicant is told to list all the casualties by name). The brother of one of my mother’s piano students got a failing grade on the entrance exams despite a brilliant academic record; after his father got an influential professor to intervene, it turned out that the examiner thought he looked Jewish. In deference to the professor, the examiner agreed to change the failing grade but irritably remarked, “Just don’t tell me he’s not a Jew—I’m not stupid!”

On a more basic level, Soviet anti-Zionist propaganda trickled down into a casual anti-Semitism that regularly manifested itself in harassment and even violence. Thankfully, my own bad experiences were very minor (a boy in my building shouting “You miserable Jew-girl!” during a playground conflict; a drunk at a bus stop ranting about Jews). But my parents endured several years of abuse by a Jew-hating neighbor in a communal apartment before they were finally able to move out. Other people had harrowing stories of children being tormented at school by anti-Semitic bullies who acted with impunity. A fellow émigré I met in the U.S. told me her decision to leave was solidified when she learned that her teenaged son had started carrying a knife to school for self-defense.

Ironically for American leftists, the dominant Soviet attitude toward race and ethnicity was precisely the sort of see-no-evil faux colorblindness that progressives love to denounce in the U.S. context. In nine and a half years of Soviet schooling, I sat through numerous lectures on proper Soviet values and only ever heard racial or ethnic prejudice mentioned as an example of Bad Things Over There In America.

Even the enemy’s racism could be downplayed if convenient: Witness the Soviet authorities’ systematic erasure of the Jewish Holocaust in discussing Nazi atrocities. This adds an ironic asterisk to the praise often heaped on the Soviet Union for its role in defeating the Nazis. Yes, Soviet forces liberated Auschwitz, but the official Soviet report on its horrors described the victims as “citizens of the Soviet Union, Poland, France,” and others, with just one specific mention of Jews—a passing reference to “a Jewish woman named Bella” in an excerpt from a survivor’s statement. In 1961, the poet Yevgeny Yevtushenko was briefly “canceled,” as we would say nowadays, for “fomenting ethnic division” by explicitly focusing on a Nazi massacre of Jews in the famous poem “Babi Yar,” and the Literary Gazette editor who greenlit the poem was sacked.

Some Were More Equal Than Others

Class equality in the Soviet Union was just as phony as anti-racism. In Politics and Pedagogy in the ‘Post-Truth’ Era, Ford admiringly mentions that “wage disparities were relatively minor,” with top officials of the economic ministries earning only three to four times as much as skilled workers. He adds that the earnings gap between the highest- and lowest-paid groups shrank in the 1960s and 1970s.

This comical analysis (“post-truth,” indeed!) leaves out the fact, known to anyone with the remotest familiarity with Soviet life, that living standards in the Soviet Union were not determined primarily by official earnings. Party bosses and high-level government officials received almost everything for free, from palatial apartments and dachas (vacation homes) to chauffeured limousines and consumer goods. There was also a secret hierarchy of “special distribution shops” where even lower-rank members of the party and state bureaucracy could buy groceries—with variety and quality that ordinary citizens could not even dream of, no lines, and lower prices than in regular stores. (My father once got smuggled into such a place by a savvy friend who conned his way past the security guard by insinuating that he knew someone important on the staff, but no purchase could be made without a membership pass.) Shenderovich, the Russian satirist, recalled that at a conference in Irkutsk in the late 1980s, he and his colleagues subsisted on sparse, barely edible meals at a cafe near their hotel—until they learned that they had a pass for the cafeteria of the regional party committee, which offered a cheap five-course dinner featuring such elusive delicacies as tomato salad, venison soup, and baked whitefish.

And then there was the separate shadow economy of blat (favors) based on connections and access. (“It’s not what you know, it’s who you know” was never as true as in the Soviet Union.) For instance, if you could arrange a bed at an elite hospital or admission to a prestigious university—either through your own job or through someone you knew—that could be a ticket to a steady supply of quality food, coveted theater seats, a washing machine, or imported footwear. There was also real money to be made on the black market. If you worked for a store or a warehouse, you pretty much had it made—unless you got greedy and reckless enough to get arrested. People with nothing to steal (engineers, for example) were out of luck.

This fundamental lack of understanding of how the Soviet system of privilege worked is also evident in a hilarious 2018 article in Jacobin, summed up in a tweet that got a well-deserved drubbing: “For all the Soviet Union’s many faults, by traversing its vast architectural landscape, we can get a glimpse of what a built environment for the many, not the few, could look like.” The prime example of architecture “for the many” invoked by author Marianela D’Aprile, an activist with the Democratic Socialists of America, is an elegant writers union resort on Lake Sevan in Armenia that radiated a “quiet luxury.” That is D’Aprile’s “glimpse of [a] possible better world.” Under capitalism, she writes, such a building would be owned by profit seekers and “reserved for those who can pay large sums”—but imagine “if unions could send their members to their lakeside resort.”

One can only wonder whether D’Aprile is genuinely unaware that a writers union resort in the Soviet Union would have been reserved for the cream of the elite, or just willfully blind to facts that might get in the way of her fantasy. To be sure, union-run resorts for ordinary people did exist. In the Soviet Union’s early decades, they provided heavily regimented vacations that stressed physical fitness and were spent with one’s “labor collective,” not with family; later, they became more relaxed and family-oriented. But the accommodations definitely did not exude “quiet luxury”: they generally ranged from atrocious to decent-but-accessible-only-with-connections.

Another major aspect of how privilege operated in the Soviet Union could be summed up in the famous maxim about real estate: location, location, location. My family was immensely privileged simply by virtue of having been born in the capital. A Moscow propiska (the residency permit that each Soviet citizen was required to have) was one of the most coveted things in the country, an incentive to sham marriages, ingenious schemes, and elaborate deceptions. The city enjoyed a special status when it came to snabzheniye (supply of food and consumer goods), quality of services, housing, medicine, and so on. Leningrad (now St. Petersburg) was only a notch below. Other large cities were in the second tier, and it was a downward slope from there until you got to small towns mired in squalor, deprivation, and crime (especially drunken violence). There, you would find decrepit housing, grungy food stores with bare shelves, dismal transit, and worse roads. A bus trip could easily expand from one hour to three in bad weather.

My parents and I saw some of this firsthand in 1979 when, already waiting for an exit visa, we decided to visit Yaroslavl and Rostov, two towns notable for their medieval Russian architecture. The architecture was not in great shape, but everything else was truly grim. There was nothing but stacks of canned fish at one store, boxes of fudge candy at another. Want food? Be prepared to line up outside a couple of hours before opening, a saleswoman explained. The shelves emptied quickly.

On weekends, hordes of people from towns as far as a four- or five-hour ride away from Moscow would scramble aboard trains to go to the capital in search of food, braving not only the long trip but frequent open hostility from Muscovites. Once, when my mother was standing in line at a grocery store, some of her fellow shoppers turned viciously on a shabbily dressed old woman they felt was buying too much—and all the more when she explained it was for her grandson in some godforsaken Soviet Hicksville. An angry chorus erupted, blaming out-of-town interlopers for the food shortages (“You people come here and pick everything clean!”). When my mother tried to intervene, they turned their ire on her, saying she was no doubt an out-of-towner herself or she wouldn’t be sticking up for the old woman.

All Soviet citizens were equal, of course. But there were so many ways in which some were very much more equal than others.

The Patriarchy Strikes Back

The most mystifying of resurgent left-wing myths about the Soviet Union, though, is that of Soviet sexual liberality and gender progressivism. I always wonder if the Twitter tankies with rainbow flags or “queer” and “pansexual” labels in their profiles are aware that sexual relations between men were a criminal offense in the Soviet Union for most of its existence. One could point out that the first criminal code of the Russian Soviet Republic in 1923 did not, in contrast to czarist Russia, criminalize sex between two males. But in a 1995 article in The Journal of Homosexuality, historian Laura Engelstein argues that the 1934 restoration of criminal penalties was not “a clear reversal of the seemingly enlightened legal practice of the 1920s”; in fact, “Soviet courts tried to repress sexual variation even when homosexuality was not a crime,” as early as 1922.

At best, the early Bolshevik revolutionaries regarded homosexuality as a sickness and a perverted manifestation of bourgeois decadence. In later years, all it could take to send a man to prison was a neighbor’s testimony that he often had male overnight visitors but no visible girlfriends. Unlike most American sodomy laws, the Soviet version required no evidence of specific sexual acts. Meanwhile, Soviet culture ruthlessly censored anything gay: Thus, the Soviet edition of the letters and diaries of Peter Tchaikovsky scrubbed numerous passages in which the composer discussed his same-sex attraction as well as encounters and relationships with young men.

Women’s liberation fared only slightly better. True, the early days of the revolution saw an upsurge in female activism, and the Bolsheviks strongly advocated equality of the sexes. In a 1918 speech to a congress of female workers, Lenin declared that the Soviet republic must make it a top priority to ensure equal rights for women. But ultimately, women’s rights were only a means to an end: As Lenin said in the same speech, equality was essential because “the experience of all liberation movements shows that the success of a revolution depends on the extent to which women participate in it.”

The revolution won; women, not so much. While they joined the workforce en masse, aided by universally available (if poor quality) day care, Lenin’s promise of liberation from “petty and mind-numbing” domestic drudgery didn’t quite pan out. The Soviet woman’s “second shift” was made much worse by scarcity, lack of conveniences, and a consumer sector in which the customer was always screwed. Shopping alone was practically a full-time job, between standing in line and going from store to store to find different items; once the shopping was done, you had to factor in some extra time for scraping dirt off the vegetables and throwing out the rotten ones, trying to find the edible parts of what the store laughingly called a steak, or salvaging the milk from a leaky carton. Add to this the fact that the scarcity of decent clothes often made sewing and knitting a necessity rather than a hobby.

Plenty of women could be found in nontraditional jobs, from road repair and other hard physical labor to medicine and engineering (both low-paid and relatively low-prestige), but they were virtually absent from high-level leadership posts. Especially in the post–World War II period, official Soviet culture vigorously reinforced traditional gender norms. Women were celebrated as mothers, men as warriors; in schools, girls had mandatory classes in housekeeping (mainly sewing and cooking) and boys in craft skills. Meanwhile, attempts to start a conversation on feminism in the early 1980s were treated as a subversive bourgeois activity—after all, according to official declarations, the “woman question” in the Soviet Union had been solved by 1930. When a group of women led by Leningrad writer Tatyana Mamonova published an underground feminist almanac in 1980, they were targeted by the KGB; Mamonova and two other contributors were expelled from the Soviet Union, while several others were imprisoned.

Tear Down This Empire

My own personal experience of the Soviet Union was far from the worst of it. My family lived well by Soviet standards. By the time I was growing up, Soviet totalitarianism had gone relatively soft; ideological diktat wasn’t nearly as rigid or omnipresent as some Westerners imagine. Some of the most popular Soviet films and TV movies made in the 1970s were not particularly communist, for example: They were either period pieces (such as a four-part musical miniseries based on The Three Musketeers) or romantic comedies of the “boy meets girl,” not “boy meets tractor,” kind.

And yet it was still a totalitarian system—a system in which I knew at the age of 10 that if I told anyone at school about the things my parents said at home (for instance, that Lenin was not the greatest genius and humanist of all time and that Soviet children were not the happiest in all the world), “Papa will go to jail.” It was a system in which closet dissidents like my parents had to “live by the lie” and regularly demonstrate feigned allegiance to the regime.

It was a system in which “they,” the powers that be, could do anything and the individual could do nothing. When I was in ninth grade, about a year before my family’s departure, word went around my school that everyone graduating at the end of 10th grade would have to spend a year in Siberia “volunteering” on the construction of the Baikal-Amur Mainline railroad. The rumor, generated by the hype in the Soviet press around the project and its enthusiasts in the Young Communist League, turned out to be false. But it was entirely believable, given that college students, some high schoolers, and young adults who already had jobs were routinely dispatched as “volunteers” to collective farms for a month to help with the fall harvest.

It was a system in which any manifestation of personal autonomy or unorthodox interests could make you an enemy of the state. Jazz fans who circulated clandestine copies of Western records were persecuted in the late 1950s. Karate, which became hugely popular in the Soviet Union in the 1970s, was abruptly banned in 1981, reportedly because the authorities were concerned that it was channeling attention away from more important Olympic sports and that it might enable people to fight back against the police in mass protests. Suddenly, teaching karate could earn you a five-year stint in the prison camps.

The Soviet Union’s first few decades were the stuff of nightmares, from the Red Terror, which is believed to have killed over a million people after the Revolution, to the “Terror-Famine” in Ukraine (as well as Kazakhstan and parts of Southern Russia), whose death toll is estimated at 7 million, to Stalin’s Great Terror, in which hundreds of thousands were shot and many more worked to death in the Siberian gulag camps. Among my parents’ friends and coworkers, few did not have a story (if they were candid about it) of a family member or relative imprisoned in the Stalin era for some absurd reason: Someone’s aunt was branded a subversive because a neighbor heard her playing a funeral march on the piano the day a notorious “enemy of the people” was executed; someone’s father was charged with fomenting “defeatist attitudes” during the war for remarking that Stalin “sounded sad” in his radio address to the people.

By the end of its existence, the Soviet Union was an exhausted totalitarian regime trying to maintain its grip on a society that laughed at official pieties, craved consumer goods, was thrilled by the forbidden, and idolized the West. The woman on the bus who had thought it was ridiculous to call the Soviet Union an “evil empire” came to mind, seven or eight years later, when I saw a photo of a rally in Moscow. A sign was being held by someone who, like me, had lived under the reality of communism. It said: “THE USSR: YES, IT IS THE EVIL EMPIRE!”

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Meet The Little Known Mystery Billionaire That Secretly Amassed $7 Billion Worth Of Tesla Stock

Meet The Little Known Mystery Billionaire That Secretly Amassed $7 Billion Worth Of Tesla Stock

While much of the cash made from the run-up in Tesla shares has been focused on Tesla insiders and well known U.S. based asset managers like Cathie Wood, there have also been some “secret” investors in the company that have made a killing on the stock’s meteoric rise. They’ve gone mostly unnoticed – until now, that is.

One such unnoticed beneficiary has “quietly amassed one of the single biggest stakes” in Tesla along the way, according to Bloomberg. Billionaire Leo KoGuan didn’t disclose until recently that he owned a substantial share in Tesla. His holdings have skyrocketed to more than $7 billion. 

The idea that KoGuan amassed the position without anybody noticing was dumbfounding to many. By KoGuan provided bank records to Bloomberg and proved that he owned 6.31 million shares of Tesla and 1.82 million options to buy the stock between $450 and $550 per share. 

The 66 year old, who lives in Singapore, told Bloomberg his strategy for investing was “stick to a single stock”, “keep doubling down” and “believe in Elon Musk”.

“Sometimes you win, sometimes you lose. Fortunately, I win more of the time than I lose,” he said.

KoGuan said he has added to his stake since September with both shares and options. He said that his gains on Monday, when the stock jumped 13%, were “in the ten figures”. 

Ever better is that KoGuan doesn’t seem interested in relinquishing his position anytime soon. “I’m all in. Any money I have I spend on Tesla,” he commented.

Little is known about KoGuan, but for the fact that he founded a software company in New Jersey that does $11.1 billion in revenue and that he recently bought the $47 million penthouse in Singapore that formerly belonged to James Dyson. 

Bloomberg described him as “exud[ing] a calm, scholarly demeanor”, noting that he had never granted an interview with a journalist before. 

He says he only picked up stock trading in 2019 and calls himself a “retail investor”. He has also bought shares of Baidu, Nio and Nvidia in the past. 

But then, he sold all of his positions except for Tesla. He credited Ron Baron, the billionaire owner of Baron Capital Management, for helping him focus on the car-maker. 

He began “pouring his money” into the stock and by early 2020 had amassed 2.3 million shares. When Covid happened, he says he lost “almost everything”.

But he kept buying. And his “simple playbook” on investing as it was described, seemed noteworthy: “buy short-term in-the-money stock options; take the profits when the stock goes up; use some of those proceeds to buy actual shares — and plow the rest into another options bet,” he told Bloomberg.

He says he has no plans to sell the majority of his wealth anytime soon. He concluded: “I look at it like a squirrel. You collect acorns and you eat some. But most you are trying to keep for the winter and you don’t eat until later.”

Tyler Durden
Mon, 11/01/2021 – 05:45

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China Will Not Be Able To Offset Its Property Bubble Easily

China Will Not Be Able To Offset Its Property Bubble Easily

Authored by Daniel Lacalle,

No economy has been able to ignore a property bubble and even less so offset it and continue to grow replacing the bust of the real estate sector with other parts of the economy. Heavily regulated economies from Iceland to Spain have failed to contain the negative impact of a real estate sector collapse. It will not be different in China.

China’s real estate problems are three:

  1. The massive size of the sector,

  2. its excessive leverage, and

  3. the amount of developer debt in the hands of average households and retail investors.

According to The Guardian, “China’s real estate market has been called the most important sector in the world economy. Valued at about $55tn, it is now twice the size of its US equivalent, and four times larger than China’s GDP”.

Considering construction and other real estate services, the sector accounts for more than 25% of China’s GDP. Just to consider other previous examples of property bubbles, the average size of the sector was somewhere between 15 to 20% of a country’s GDP. And none of those economies managed the excess of the property sector.

Of course, the problem of a real estate bubble is always excessive leverage. Developers take too much debt and the smallest decrease in housing prices makes their equity vanish and their solvency ratios collapse.

In the case of China, the level of debt is simply staggering. According to Messari Capital Securities, the average net debt including minority interests of the fifteen largest Chinese developers stands at 60% to total assets. Evergrande is not even the most indebted. The three largest developers stand at more than 120% net gearing. The top ten most indebted Chinese developers amply surpass the level of debt to assets that made Spain’s Martinsa Fadesa collapse.

Chinese and foreign retail investors are also heavily exposed to the real estate and construction market. Evergrande was the biggest issuer of commercial paper and developers’ debt was sold to small investors in different packages. Furthermore, Chinese families have around 78% of their wealth tied up in property, more than double the U.S., according to a 2019 study by Chengdu’s Southwestern University of Finance and Economics and BloombergQuint. China has also launched nine REITs (Real estate Investment Trusts) that raised more than $5 billion in just a week in over-subscribed offerings in a market that could reach $3 trillion, according to Bloomberg.

These three factors mean that it will be impossible for China to contain a bubble that is already bursting. According to the Financial Times, prices of new homes across China’s biggest cities fell in September for the first time since April 2015. New home prices dropped in more than half of the seventy cities relative to August.

With high leverage, prices that have risen massively above real GDP and real wages, and a population that is heavily exposed to the sector, the impact on China’s economy will be much more than just financial. Even if the PBOC tries to disguise the fiscal impact with liquidity injections and bank direct and indirect bailouts, the real estate bubble is likely to hit consumption, utilities that have built infrastructure around empty buildings, services and sectors that manufacture parts for construction.

The Chinese government may contain the financial implications, but it cannot offset the real estate sector impact on the real economy. This means weaker growth, higher risk, and lower consumption and investor appetite for China exposure. Furthermore, the central bank cannot solve a problem of solvency with liquidity.

Property bubble-driven growth always leads to debt-driven stagnation.

Tyler Durden
Mon, 11/01/2021 – 05:00

via ZeroHedge News https://ift.tt/3EAd1Io Tyler Durden

Brickbat: Hateful Humor


craigslist_1161x653

An Illinois high school student has been sentenced to two years’ probation and 100 hours of community after  pleading guilty to two counts of felony hate crime and one count of misdemeanor disorderly conduct. The Naperville Central High School student, a minor whose name was not released, posted an ad for a slave for sale with a picture of a black classmate on Craigslist. The victim’s mother said he and the boy who posted the ad were once close friends but had a falling out. She said her son was taunted at school after word of the ad spread.

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“Very Green” – Biden’s Gas-Guzzling 85-Car-Motorcade Raises Climate-Crazed Eyebrows In Vatican Visit

“Very Green” – Biden’s Gas-Guzzling 85-Car-Motorcade Raises Climate-Crazed Eyebrows In Vatican Visit

President Biden arrived at a climate summit in Glasgow on Sunday, but before that, the president cruised around Rome in an 85-vehicle gas-guzzling motorcade – drawing strong criticism on Twitter about liberal hypocrisy. 

On Friday, Biden was on his way to meet Pope Francis, traveling in an 85-car motorcade, when WaPo’s Chico Harlan captured that massive fleet of vehicles involving multiple gas-guzzling limos, SUVs, and a line of vans. 

The optics of the massive presidential motorcade is not great for Biden who routinely says “decarbonize this” and decarbonize that.” The motorcade highlights America’s Marie Antoinette political class where they seemingly don’t care about their carbon footprint but want everyone to reduce theirs. 

Biden routinely says fossil fuels cause a “climate crisis,” but most people don’t realize that his new Cadillac limousine, ‘The Beast 2.0,’ was ordered by former President Trump and is powered by a 5.0-liter diesel engine. 

Here are more pictures of Biden’s motorcade, with some vehicles powered by dirty diesel engines. It’s unclear how many vehicles were electric plug-ins or hybrids, though it seemed limited. 

Ahead of the COP26 climate summit, Biden’s entourage of liberals in their fancy fossil fuel-powered limos has already emitted large amounts of carbon emissions, which also includes traveling on Air Force One to Europe and transport planes carrying some of the vehicles overseas. This all comes days before the president unveiled a $1.75 trillion framework for his signature climate and social spending bill. After he reached the Vatican on Friday, the president discussed climate change with Pope Francis. The president has preached before, “we all have that obligation — that obligation to our children and to our grandchildren” to curtail fossil fuel usage. 

Many of Biden’s critics were quick to call out the liberal hypocrisy. 

“But remember folks,” pundit Darren Grimes tweeted in reaction to the motorcade video. “YOU must stop driving YOUR car. YOU must stop flying abroad. YOU must stop eating meat. YOU must stop using a gas boiler. YOU must immiserate YOUR life in the name of saving the planet.”

… and where was Swedish climate alarmist Greta Thunberg to rage on Twitter about Biden’s massive motorcade?

Biden’s single trip to Europe will likely produce more emissions than the average person will in their lifetime. But it’s the working poor who must make sacrifices while the political elites are the masteries of virtue-signaling. 

Tyler Durden
Mon, 11/01/2021 – 04:15

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Brickbat: Hateful Humor


craigslist_1161x653

An Illinois high school student has been sentenced to two years’ probation and 100 hours of community after  pleading guilty to two counts of felony hate crime and one count of misdemeanor disorderly conduct. The Naperville Central High School student, a minor whose name was not released, posted an ad for a slave for sale with a picture of a black classmate on Craigslist. The victim’s mother said he and the boy who posted the ad were once close friends but had a falling out. She said her son was taunted at school after word of the ad spread.

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Amsterdam Real Housing Prices Highest In 400 Years: An Analysis Of A Bubble

Amsterdam Real Housing Prices Highest In 400 Years: An Analysis Of A Bubble

By Jan Nieuwenhuijs of The Gold Observer

Housing prices in Amsterdam, corrected for inflation, have never been this high in recorded history. Next to low interest rates, the cause of rapidly rising prices is a feedback cycle between banks and consumers having become addicted to mortgage lending and ever-increasing prices.

With the Great Financial Crisis—caused by a real estate bubble—still fresh in our memories, in many advanced economies housing prices are currently rising at a record pace. In the Netherlands housing prices were up 19% in the third quarter of 2021, compared to the year before.

Some economists perceive housing prices in Amsterdam—of which I have obtained the longest-running index—to be overvalued since 2020, based on a model of rent prices and interest rates. Others point towards policies implemented in the West over many decades that have created a “housing-finance feedback cycle,” wherein banks have become addicted to mortgage lending, fueling housing prices, and consumption increasingly relies on the “wealth” generated by rising prices. Because this trend makes banks lend less credit to productive businesses, the very core of economies is weakened.

The Longest-Running Real Estate Index  

Several building blocks of capitalism have been invented in Amsterdam, the capital of the Netherlands (Holland). In the late 16th century, the Dutch embarked on trading expeditions over sea to Asia. By 1600 there were six fledgling “East India” companies sailing from Dutch ports. To combat Spanish and Portuguese competition, and not compete against each other, the six existing companies merged into one: the United East India Company (De Verenigde Oost-Indische Compagnie, or VOC for short). The VOC was formally chartered in 1602, and became the first joint-stock company, with its shares changing hands on the first stock exchange. Money from all over Europe poured into the Netherlands. Because of the VOC’s extraordinary success Amsterdam needed to expand, and did so by digging three canals around the medieval city center: the Herengracht, Keizersgracht, and Prinsengracht.

Transaction prices of real estate on the Herengracht, the finest of them all, have been carefully recorded. In 1997 Dutch economist Piet Eichholtz build a price index of houses on the Herengracht with a constant quality from 1628 until 1973. This was the birth of the Herengracht Index. Eichholtz’s initial research showed that real housing prices (corrected for consumer price inflation) gradually changed over time, but were fairly equal in 1973 compared to prices in 1628.

Eichholtz et al published an update on historic housing prices in Amsterdam in 2020. For this publication Eichholtz et al collected a deeper set of data, which starts in 1620 and includes houses from a wider area. Although the numbers show prices started to rise significantly from the 1990s onwards, their conclusion was that the housing market was not in a bubble, based on rent prices and interest rates.

One of Eichholtz’s colleagues, Mathijs Korevaar, was so kind to provide me their data up till September 2021. In an email he wrote me that after 2019 prices have risen to such an extent that their model suggests real estate in Amsterdam is now overvalued. Below is the chart of Amsterdam real housing prices from 1620 through September 2021.  

What happened in the 1990s that pushed housing prices far above prices during Holland’s Golden Age in the 17th century and second Golden Age in the late 19th century? To obtain a broader understanding of the housing market—beyond a model based on rent prices and interest rates—I read the work of an economist specialized in land, housing and banking: Josh Ryan-Collins.

The Mortgage Revolution

According to Ryan-Collins there have been two major developments in the housing market since the tun of the 19th century: a change in land tax and financial deregulation. Although he mostly researched Anglo-Saxon economies, I cross-checked his findings in the Netherlands.  

Classic economists, such Adam Smith and John Stuart Mill, viewed land an asset incomparable to other assets, mainly because it’s in fixed supply and immobile. If demand for land increases, the price rises without triggering more supply. As a consequence, if there is economic growth, the value of land—on which houses are build—rises disproportional to goods and services (even if the owner of the land plays no role in the creation of that value). The solution of Smith and Mill was to tax land, more so than labour or profits. Indeed, in the 18th and 19th century land tax was a major source of income in the U.S. and Europe.

Then came the neoclassical economists that did away with the aforementioned theories on land. In the 20th century a shift emerged from land tax to income tax. It became increasingly more attractive to own a house as a financial asset. All that was missing was a way to finance real estate. 

From the 1930s through 1970s the governments in most advanced economies imposed “credit guidance” on banks, which restricted mortgage lending. By preference banks lend mortgage credit over corporate credit, because the former is less risky. Commonly, the house bought with a mortgage serves as secure collateral for the loan. In case the borrower goes bankrupt, the bank can obtain the collateral and the damage is confined. In case of lending to a business, there can be no collateral or collateral of low quality. For society, though, lending to productive businesses is essential, as it creates sustainable economic growth and incomes to service debt. But credit guidance has slowly been dismantled, and as a result banks’ mortgage credit overtook non-mortgage credit in 1995. The mortgage revolution was a fact.

The credit as percentages of GDP are unweighted averages of 18 advanced economies. Source Macrohistory Database.

A bank creates money out of thin air when it lends credit. So, in case banks are lending mortgage credit the money supply is expanded, but the money is spend on a limited quantity of houses. The money supply is elastic, while the supply of houses is inelastic. No wonder that in the 1990s housing prices went up. Subsequently, the housing-finance feedback cycle was triggered: higher housing prices created more demand for mortgages, which further pumped up prices, resulting in more demand for mortgages, and so on.

The securitization of mortgages, that took off in the 1990s, also contributed to “the cycle.” Securitization enables banks to bundle and package mortgages into a Mortgage Backed Security (MBS). An illiquid asset (mortgage) is turned into a liquid asset (MBS) that can be sold, for example, to a pension fund. Banks earn fees for selling MBSs, and when the securities are off their balance sheet, it leaves more room for new mortgage lending.

Last but not least, the capital controls that were lifted after the breakdown of Bretton Woods in 1971, meant that banks were no longer dependent on domestic deposits for their funding. Banks gained access to international money markets, where they could attract additional funding for housing credit.

Escalating property prices result in a higher house price-to-income ratio and thus less consumer spending. This loss in spending in the housing-finance feedback economy is compensated by the “wealth” generated from increased housing prices. People that have unrealized gains on their property will, i.e., spend more because they feel wealthier (wealth effect), or take out a second mortgage to buy a boat (equity withdraw). Other people’s profits increase through speculating on real estate. But consumption can only keep up for as long as the cycle is perpetuated.

Conclusion

The cycle needs more debt and increasing housing prices. This unsustainable debt spiral endures by the grace of central banks lowering interest rates. In my view, the above resembles a ponzi scheme and the housing market is in a bubble. Although I am not certain how long this situation will last and how the bubble will pop. Perhaps nominal housing prices will decline, perhaps inflation will rise such that real housing prices retrace their long-term average. A problem with declining nominal prices is that it can tear down the banking system, something central banks want to prevent, as banks have massive exposure to mortgages.  

I would like to stress that not every (advanced) economy has the same housing market. Neither do mortgage debt levels rise in a linear fashion. After the Great Financial Crisis in 2008 housing prices and mortgage debt levels fell in many economies. In response to the crisis governments came to the rescue to bail out banks and support the economy—which increased government debt. The housing bubble was not allowed to fully deflate. Interest rates hit zero, real interest rates went negative, and the cycle was re-activated. Housing prices resumed their ascent.  

OECD countries include most advanced economies

Furthermore, an academic paper (“More Mortgages, Lower Growth?”) from 2016 by Dirk Bezemer et al states:

In newly collected data on 46 economies over 1990-2011, we show that financial development since 1990 was mostly due to growth in credit to real estate and other asset markets, which has a negative growth coefficient. … We find positive growth effects for credit flows to nonfinancial business but not for mortgage and other asset market credit flows. …

Not only did the mortgage revolution “crowd out” credit for productive businesses, the credit flow to mortgages has a negative growth effect.

Can it be that the mortgage revolution, which has stifled growth, combined with a fiat international monetary system that enables unlimited debt levels, has spawned the greatest debt trap in the history of the world?

Finally, in the Netherlands, and I suppose elsewhere, the most mentioned solution for unaffordable housing is to simply build more houses. This approach fails, because banks can always print money faster than anyone can build houses. The solution is to be found on the demand side, not the supply side.

All sources can be found here.

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Tyler Durden
Mon, 11/01/2021 – 03:30

via ZeroHedge News https://ift.tt/3nIy1G5 Tyler Durden

No Coke For Cuba And North Korea

No Coke For Cuba And North Korea

Whether you call it Coke, Cola or refer to it by its actual brand name Coca-Cola: Everybody around the world knows the soft drink. Its red-and-white design is ubiquitous and even responsible for Santa Claus’ wardrobe choice. Still, as Statista’s Florian Zandt notes, the beverage isn’t legally available everywhere in the world.

There are two countries where you won’t find the carbonated drink in stores – at least officially.

Infographic: No Coke for Cuba and North Korea | Statista

You will find more infographics at Statista

Due to ongoing trade embargoes and sanctions, there are currently no legal avenues to buy Coca-Cola in Cuba and North Korea. That isn’t to say that you can’t get your hands on the drink in any other way, just that importing or bottling the beverage is not officially possible in these places.

Up until 2012, Myanmar was also a country where you couldn’t legally buy a Coke. After the ban was lifted, the soft drink manufacturer invested $200 million to kickstart distribution in the area. Over the last century, the people of Vietnam and China also had to make do without Cola for a couple of years, with the brand’s beverages becoming available again in 1994 and 1979, respectively.

On its website, Coca-Cola lists 202 markets across four regions where its drinks are sold and marketed. This number, however, has to be approached with caution, since the company doesn’t clarify what constitutes a market and there are currently only 195 UN members, with Taiwan being a potential 196th. The sales of its various beverages in these markets, however they may be defined, generated 75 percent of the company’s $33 billion operating revenue in 2020, with bottling investments and global ventures making up the remaining 25 percent.

Tyler Durden
Mon, 11/01/2021 – 02:45

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Is Climate Alarmism An Establishment Attempt To Restore Social Control?

Is Climate Alarmism An Establishment Attempt To Restore Social Control?

Authored by Eric Worrall via WattsUpWithThat.com,

Over the years, I’ve noticed pretty much every establishment attempt to push a climate agenda is accompanied by a call for people to unite.

What if fear of change, of loss of control, and a desire for social unity and predictability are the real driving force behind the climate push?

Does the UK need a referendum on climate change pledges?

Critics say net-zero target has been imposed by ‘elites’ without electoral mandate

27 OCT 2021

A large proportion of the British public are in favour of a referendum on the government’s net-zero proposals, according to a new poll by YouGov.

The Tony Blair Institute’s Tim Lord rejected the idea that “elites” are behind the drive for climate action. He said “there is irony in this – as it is the poorest who will be most severely affected by unconstrained climate change”.

Lord agreed that the net-zero target was introduced in the summer of 2019 with minimal debate in the Commons and no mention of the plan in the 2017 election – but it was included in the Conservative manifesto ahead of the December 2019 election.

While delivering net zero is a “complex task” that “cannot be achieved without public support for both the overall goal, and the policies required to get there”, this “cannot mean everyone supports every measure”, he said. Consent must be drawn from a broad base and “net zero has to be based around a politics of unity, not division”.

Read more: https://www.theweek.co.uk/news/uk-news/954591/does-the-uk-need-a-referendum-on-net-zero-pledges

Here’s another call for unity;

Pope Francis praises youth activists in fight to tackle climate change

“It is said that you are the future, but in these matters, you are the present. You are those who are making the future today, in the present,” the pontiff said.

The pope said solutions to climate change, including sustainable development and production, must be built on unity and a shared sense of responsibility.

“There must be harmony between people, men and women, and the environment,” he said. “We are not enemies. We are not indifferent. We are part of this cosmic harmony.”

Read more: https://www.nbcnews.com/science/environment/pope-francis-praises-youth-activists-fight-tackle-climate-change-rcna2401

China wants unity too;

China releases white paper on climate change response

Updated 18:47, 27-Oct-2021

China on Wednesday released a white paper on the country’s policies and measures for responding to climate change. China has set a goal of peaking carbon dioxide emissions by 2030 and achieving carbon neutrality by 2060.

The white paper states that climate change is a cause shared by all of humanity. Faced with unprecedented challenges in global climate governance, the international community needs to respond with unprecedented ambition and action. We need to act with a sense of responsibility and unity, take proactive measures, and work together to pursue harmony between humanity and nature.

Read more: https://news.cgtn.com/news/2021-10-27/China-releases-white-paper-on-climate-change-response-14Hs1nziBe8/index.html

Unity, unity, UNITY. Plenty more examples where they came from.

When you think about it, a child could see through the nonsensical claims of climate alarmists. If slightly warmer temperatures are so terrible, why aren’t slightly warmer places already suffering all the problems alarmists say will happen? But climate alarmism, as a potential source of social unity, is far too valuable allow it to be defeated by mere logic.

What has caused this sudden upsurge in fear amongst global elites, that they are losing control?

I believe the trigger for this panic amongst the global elites was the fall of the Soviet Union. The Soviet State, right up until the very end, seemed all powerful, enormous, an unstoppable juggernaut with its terrifying state security apparatus and apparently complete control of communication.

But the Soviets failed to adapt to the information revolution.

“Truth is good,” goes an old Russian proverb that Shane quotes, “but happiness is better.”

The earliest stirrings of free thought were nurtured on the radio broadcasts of Voice of America and the crude, self-published books and tape recordings of the Samizdatand Magnitizdat movements. By the end, of course, it was CNN and cellular phones that finally defeated the Soviet Union.

The exploding arsenal of electronics–cellular telephones, fax machines, VCRs, satellite dishes, computers with modems–demonstrated a trend for technology to become more compact, portable, versatile and inexpensive,” Shane explains. “As such, the new machines seemed to be weapons the citizen could wield against the state as readily as the state could use them on the citizen.

As Shane points out, the phrase “information revolution” takes on an entirely new meaning in this context. And he helps us understand how stirring but also how bizarre it must have been for a Soviet citizen to turn on his television set and see the top brass of the KGB on a call-in show: “Tonight they will be answering the questions,” the host announced.

Read more: https://www.latimes.com/archives/la-xpm-1994-05-11-ls-56160-story.html

China has survived more successfully than the Soviets, because they had more money. Deng Xiaoping’s capitalist economic reforms in the 1980s gave the CCP the financial resources they needed to buy monitoring equipment and expertise, which made them more able to keep up with the information revolution. But even the Chinese are struggling to contain the free flow of information which is undermining state control of public narratives. Global freedom initiatives have provided systems like the TOR Project, which are used by Chinese citizens who want to sneak past the Great Chinese Firewall, so they can keep track of what is really going on in the world.

If global elites cannot control communication technology, the next best thing is to try to dominate the conversation, through a fear campaign and a call for global unity. The focus point for that push for global unity didn’t have to be climate change, but I believe they chose climate alarmism because it was convenient and available, and already had a significant following at the time the elites took an interest. Mikhail Gorbachev, after he lost his old job as the last dictator of the Soviet Union, spent a lot of time in the early 90s supporting United Nations climate initiatives.

The desire by elites to cling on to control, in my opinion, is why climate alarmism has survived repeated embarrassing predictive failures.

Normally when a scientific theory produces a disastrous series of wrong predictions, the theory withers and dies. But in my opinion global elites are keeping climate alarmism on life support, with vast infusions of taxpayer’s cash for compliant researchers, and en entire renewable energy industry which only exists because the governments of the world keep diverting taxpayer’s cash to pay the bills.

So long as a significant portion of the population believes in the climate crisis, this powerful source of social unity is too useful for spooked global elites to surrender.

The elite desire to hold back the information revolution at any price does nothing good for ordinary people.

Frightening kids with false climate doomsday narratives might buy the elites a little time, by helping the elites to retain their grip on power in the face of the technology driven growth of free speech and open communication, but the kids who accept the climate lies endure tremendous personal suffering.

Tyler Durden
Mon, 11/01/2021 – 02:00

via ZeroHedge News https://ift.tt/3jSllv8 Tyler Durden

CJ Hopkins: (New Normal) Winter Is Coming

CJ Hopkins: (New Normal) Winter Is Coming

Authored by CJ Hopkins via The Consent Factory,

Winter is coming … and you know what that means…

That’s right, it’s nearly time once again for the global-capitalist ruling classes to whip the New Normal masses into a state of mindless mass hysteria over an imaginary apocalyptic virus. the same imaginary apocalyptic virus that they have whipped the New Normal masses into a state of mass hysteria over throughout the Winter for the last two years.

They’ve got their work cut out for them this time. Seriously, how much more mass hysterical could the New Normals possibly get at this point?

The vast majority of the Western world has been transformed into a pseudo-medical dystopia in which you have to show your “health-purity papers” to enter a café and get a cup of coffee. People who refuse to get experimentally “vaccinated” against a virus that causes mild-to-moderate symptoms (or, often, no symptoms whatsoever) in about 95% of the infected, and the overall infection fatality rate of which is approximately 0.1% to 0.5%, are being systematically segregated, stripped of their jobs, denied medical treatment, demonized as “a danger to society,” censored, fined, and otherwise persecuted.

If you think I’m overstating the case, look at the front page of this Australian newspaper …

Yes, the Great New Normal Purge is on. “The Unvaccinated” and other infidels and heretics are being hunted by fanatical, hate-drunk mobs, dragged before the New Normal Inquisition, and made examples of all over the world.

Here in New Normal Germany, popular footballer Joshua Kimmich is being publicly drawn and quartered for refusing to submit to being “vaccinated” and profess his faith in the New Normal World Order. In the USA, “the Unvaccinated” stand accused of murdering Colin Powell, an 84-year-old, cancer-ridden war criminal. Australia is planning to imprison people and fine them $90,000 for the “crime” of not wearing a medical-looking mask, or attempted worship at a synagogue, or whatever. In Florida (of all places), fanatical school staff tied a medical-looking mask to the face of a non-verbal Downs-syndrome girl with nylon cord, day after day, for over six weeks, until her father discovered what they were doing. I could go on, but I don’t think I have to. The Internet is brimming with examples of mass-hysterical and sadistic behavior.

And that’s not to mention the mass hysteria rampant among the New Normals themselves … for example, the parents who are lining up to get their children needlessly “vaccinated” and then rushed into the emergency room with “totally manageable myocarditis.”

Still, as mass hysterical as things are, count on GloboCap to go balls out on the mass hysteria for the next five months. The coming Winter is crunch time, folks. They need to cement the New Normal in place, so they can dial down the “apocalyptic pandemic.” If they’re forced to extend it another year … well, not even the most brainwashed New Normals would buy that.

Or … all right, sure, the most brainwashed would, but they represent a small minority. Most New Normals are not fanatical totalitarians. They’re just people looking out for themselves, people who will go along with almost anything to avoid being ostracized and punished. But, believe it or not, there is a limit to the level of absurdity they’re prepared to accept, and the level and duration of relentless stress and cognitive dissonance they are prepared to accept.

Most of them have reached that limit. They have done their part, followed orders, worn the masks, got the “vaccinations,” and are happy to present their “obedience papers” to anyone who demands to see them. Now, they want to go back to “normal.” But they can’t, because … well, because of us.

See, GloboCap can’t let them return to “normal” (i.e., the new totalitarian version of “normal”) until everyone (i.e., everyone who matters) has submitted to being “vaccinated” and is walking around with a scanable certificate of ideological conformity in their smartphones. They would probably even waive the “vaccination” requirement if we would just bend the knee and pledge our allegiance to the WEF, or BlackRock, or Vanguard, or whoever, and carry around a QR code confirming that we believe in “Science,” the “Covidian Creed,” and whatever other ecumenical corporatist dogma.

Seriously, the point of this entire exercise (or at least this phase of this entire exercise) is to radically, irrevocably, transform society into a monolithic corporate campus where everyone has to scan their IDs at every turn of an endless maze of perpetually monitored, eco-friendly, gender-fluid, ideologically uniform, non-smoking, totally meat-free “safe spaces” owned and operated by GloboCap, or one of its agents, subsidiaries, and assigns.

The global-capitalist ruling classes are determined to transform the planet into this fascistic Woke Utopia and enforce unwavering conformity to its valueless values, no matter the cost, and we, “the Unvaccinated,” are standing in their way.

They can’t just round us up and shoot us — this is global capitalism, not Nazism or Stalinism. They need to break us, to break our spirits, to coerce, gaslight, harass, and persecute us until we surrender our autonomy willingly. And they need to do this during the next five months.

Preparations therefore are now in progress.

In the UK, despite a drop in “cases,” and the fact (which the “authorities” have been forced to acknowledge) that the “Vaccinated” can spread the virus just like “the Unvaccinated,” the government is preparing to go to “Plan B” and roll out the social-segregation system that most of Europe has already adopted. In Germany, the “Epidemic Emergency of National Importance” (i.e., the legal pretense for enforcement of the “Corona restrictions”) is due to expire in mid-November (unless they can seriously jack up the “cases,” which seems unlikely at this point), so the authorities are working to revise the “Infektionsschutzgesetz” (the “Infection Protection Act”) to justify maintaining the restrictions indefinitely, despite the absence of an “epidemic,” or an “emergency.”

And so on. I think you get the picture. This Winter is probably going to get a little nutty … or, OK, more than a little nutty. In terms of manufactured mass hysteria, it is probably going to make Russiagate, the War on Populism, the Global War on Terror, the Red Scare, and every other manufactured mass-hysteria campaign you can possibly think of look like an amateur production of Wagner’s Götterdammerung.

In other words, kiss reality (or whatever is left of reality at this point) goodbye. The clock is ticking, and GloboCap knows it. If they expect to pull this Great Reset off, they are going to need to terrorize the New-Normal masses into a state of protracted pants-shitting panic and uncontrollable mindless hatred of “the Unvaccinated,” and anyone challenging their rule. A repeat of the Winters of 2020 and 2021 is not going to cut it. It is going to take more than the now standard repertoire of fake and manipulated statistics, dire projections, photos of “death trucks,” non-overflowing overflowing hospitals, and all the other familiar features of the neo-Goebbelsian propaganda juggernaut we have been subjected to for over 18 months.

They are facing a growing working-class revolt. Millions of people in countries all over the world are protesting in the streets, organizing strikes, walk-outs, “sick-outs,” and mounting other forms of opposition. Despite the corporate media’s Orwellian attempts to blackout any coverage of it, or demonize us all as “far-right extremists,” the New Normals are very aware that this is happening. And the official narrative is finally falling apart. The actual facts are undeniable by anyone with an ounce of integrity, so much so that even major GloboCap propaganda outlets like The Guardian are being forced to grudgingly admit the truth.

No, GloboCap has no choice at this point but to let loose with every weapon in its arsenal — short of full-blown despotism, which it cannot deploy without destroying itself — and hope that we will finally break down, bend the knee, and beg for mercy.

I don’t know exactly what they’ve got in mind, but I am definitely not looking forward to it. I’m already pretty worn out as it is. From what I gather, so are a lot of you. If it helps at all, maybe look at it this way. We don’t have to take the battle to them. All we have to do is not surrender, withstand the coming siege, and make it to April.

Or, if the strikessick-outs, and “bad weather” continue, it might not even take that long.

Tyler Durden
Sun, 10/31/2021 – 23:30

via ZeroHedge News https://ift.tt/3CzTJ5l Tyler Durden