Power and Punishment
From death and destruction in the Levant to politics on the Pampas...
Bill Bonner, reckoning today from Youghal, Ireland...
God commanded the Israelites, “In the cities of the nations the Lord your God is giving you as an inheritance, do not leave alive anything that breathes. Completely destroy them—the Hittites, Amorites, Canaanites, Perizzites, Hivites and Jebusites—as the Lord your God has commanded you.”
Deuteronomy 20:16-17
What a bad week. Two things happened that stomped, as if on a cigarette butt, on the little remaining faith we had in social progress, democracy and the human race.
First, a group of terrorists or freedom fighters (depending on your point of view) attacked and murdered hundreds of Israelis. And if that wasn’t bad enough, in retaliation, the Israelis began shooting the fish in the Gaza barrel.
People settle their disputes as best they can. Often, they lose their patience. They lose their tempers. They lose their grace and dignity.
But the real disgrace falls on the friends who, instead of talking sense to them, cheer them on…and provide more ammunition.
Death total so far: 1,400 Israelis, 6,000 Palestinians.
Nothing from Nothing
Everything comes from something else. The attack on Israelis by the Palestinians from Gaza….as well as the eye-for-an-eye strikes on Gaza by the Israelis…both have their roots in long traditions, policy choices, fear…loathing…the politics of the Near East and the craven heart of mankind.
What will come from the destruction of the Gaza ghetto? Just to take a wild guess, it will lead to more violence…and more business for the firepower industry. He who has the most firepower wins. But nobody can maintain a monopoly on firepower for very long. New, cheap, light, AI-guided, drone-delivered weapons could tip the balance of firepower. Then, the last shall be first…and then last again.
God will decide for Himself who’s right and who’s wrong. “Judge not, lest ye be judged,” He advises mankind. But when you’ve got an empire…and a trillion-dollar firepower industry, you pick sides. You send your ‘think tank’ shills into the media to explain why ‘western civilization’ is at stake. Your retired generals go to Capitol Hill to tell the politicians how they need to ‘make Americans safe’ by spending more money. And you sleep soundly, knowing that God is on your team…while your bombs fall on the ‘other team.’
It worked for you in Kosovo, Iraq, Afghanistan, and the Ukraine. It’s a winner, too, in Israel. And who knows, maybe you’re be able to bring Iran into it too, and build an indoor pool in your house in McLean.
National Security Council spokesman John Kirby says the US continues to oppose a ceasefire, fearing that the ‘enemy’ might gain some advantage from not being killed.
Meanwhile, a Congressional committee suggests that we need more nukes…better nukes…because, we just don’t have enough of them. The Washington Examiner:
US needs to update nuclear posture to defend against China and Russia: Congressional commission
Rep. Mike Rogers says this is a ‘wake up call.’
Whatever else can be said about it, and in spite of Professor Pinker, it tells us that little progress has been made over the last 3,000 years. The Israelites did their dirty work in the promised land. Then, the crusaders did the same. The English did it in Ireland. And now, the Israelis are at it again.
But from America…2023…we hoped for better.
A real economist is merely an observer, trying to understand how the knee bone is connected to the leg bone…and how that enables man to walk. Unlike Bernanke or Yellen, he is not some mad Frankenstein, attaching the leg to the elbow claiming it will help him walk faster.
Actions have consequences. We try to figure out what they are.
The other thing that snuffed the precious remnant of our faith in democracy was the election in Argentina. Here was a clear choice. One candidate – Massa – represented the status quo. He was the candidate put forward by the Peronist party, which has been in control since 1946, almost permanently…and has made Argentina the delightful sh*thole it is now. Not only that, Massa is currently the finance minister, more responsible for today’s 200% inflation than perhaps any living human.
On the other side was Javier Milei. Crazy? Maybe. He is advised by his dead dog. We see nothing disqualifying about that. Much better a dead dog than a live economist. The advice will be better.
The choice was clear. More of the same…or something different. Milei is not a mainstream, modern economist…but he is a serious one. He is a follower of the “Austrian school”…which is close to the ‘moral philosophy’ approach we follow here. He is probably right about how to improve the Argentine economy – cutting expenses, using the dollar as the currency, and burning down the central bank –…though, there may be huge and impassable political barriers to getting the job done...as we will see…
So, what did the benighted Argentine voters…do? They voted for Massa…the man most responsible for their misery!
‘Give us another kick in the pants,” they pleaded. Poison our wells. Rape our wives and daughters. Steal our money. Cheat us. Por favor!
Two Wrongs
What a pathetic display. But now we see why the Argentines are where they are. You don’t always get what you want in life…or what you expect. But you get what you deserve. The gauchos got it good and hard. Now, they want more of it. Go ahead, Mr. Massa; give it to them!
The run-off election is in November.
And what about the Palestinians? What do they deserve? Didn’t they vote for Hamas? Don’t they deserve to die?
We don’t know. We wouldn’t feel confident making that kind of judgment. Besides, it’s not up to us. The old timers have a lot of good advice on this point: “Two wrongs don’t make a right,” they tell you in kindergarten. “Vengeance is mine,’ sayeth the Lord. “If you go seeking vengeance, take two coffins,” says the old Sicilian proverb.
Advice to US and Israeli policymakers: get an extra coffin, just in case.
Regards,
Bill Bonner
Joel Bowman, with a few notes from Buenos Aires, Argentina…
As for power and politics down here on the Pampas, a dear reader writes in:
“Seems to me that the vast majority of the Conservative Bullrich vote would be more inclined to vote for Milei over Massa.”
From your lips, dear reader…
Observes another:
“A distinct possibility: If you add the conservative’s 23% to Milei’s 30%, palpably, you get 53% (always based on some assumptions, but maybe a sign of HOPE).”
To bring our readers up to speed, the field has narrowed to two horses... the incumbent, Peronist Sergio Massa... and the insurgent, anarcho-capitalist Javier Milei. The rest have gone to the glue factory.
For the upcoming election, all eyes will be on the orphaned voters, those left behind by the ousted candidates. Of particular interest, the 23% who voted for Patricia Bullrich, the center right candidate. Assuming the Massa-Milei voters stay in their lane, it is her followers who will likely decide the coming election, on November 19.
But first, what’s this? Some Argentines are wondering where all Massa’s new voters came from. In the primaries, held just a couple of months ago, 22.5 million hopeful voters went to the polls. The breakdown was as follows:
7.5 million for Milei
6.7 million for Bullrich
6.5 million for Massa (+ Grabois)
The second round, held this past weekend, saw 26 million voters head to the polls. The count:
7.9 for Milei
6.3 for Bullrich
....and 9.6 million for Massa!
In other words, of the 3.5 million new voters, 3.1 million (88%) went to the guy who lost the first round... and who is in charge of the biggest financial mess the country has seen in decades. Hmmm...
Whatever you choose to make of that, it’s sure got people here talking ahead of the final lap. And now, Patricia Bullrich has officially endorsed Milei.
“Last night I had a meeting with Milei,” she announced on television this week. “We talked about his statements and we forgave each other because today the country needs us to be able to forgive each other. The future is at stake.”
Meanwhile, Professor Steve Hanke of Johns Hopkins University is advising Sr. Milei on his proposal to dollarize the Argentine economy, a move that would see the country ditch the flailing peso and switch to the US dollar.
Prof. Hanke oversaw the dollarization of both Montenegro (1999) and Ecuador (2001). We’re going to see the good professor next week to find out what it’s all about. We’ll let you know how it goes. Stay tuned…
As always an excellent article well written and including elements that most of your affiliates are too scared to say for fear of backlash. I am so glad your not one of them and so sad that they dont have the balls to tell it like it is.
Argentina: BOHICA is the word of the day. I wonder if they use the same voting machines that are used in Pennsylvania and Michigan?
As for Israel - Gaza, it's not about Hamas. It's about seizing more land from an already disposed people. It expands Israeli control of the coast all the way to Egypt. Offers tremendous financial opportunities for builders of resort hotels, and shipping ports. They just have to move 2.2 million people off their land.