China and Semiconductors 

The Biden Administration has announced further limits on Chinese firms’ ability to access foreign (read: US dominated) semiconductor technology. Many of my followers ask why I don’t consider China a more capable potential threat to the global order than I do; the ability for Beijing to be cut off from global technology with what amounts to the stroke of a pen is one of them.

China remains utterly dependent on foreign countries for innovation and tech discovery, research, investment into its higher level manufacturing. It’s not just that the most advanced chips powering everything from your smart phone to the cloud and advanced computing are designed in the West (and primarily the US)–key production components and technologies, such as advanced lasers, are often siloed within one or two companies in the US, the Netherlands/EU, or Japan and South Korea. While China might produce the lion’s share of low end chips, they are hardly at the forefront of anything.


We have never and will never charge for our newsletters or videos, but we do have an ask. If you enjoy our products, we ask you consider supporting MedShare by clicking one of the links below. MedShare is an established non-profit organization that helps respond to medical need globally, including to the ongoing crisis in Ukraine.

CLICK HERE TO SUPPORT MEDSHARE’S UKRAINE FUND

CLICK HERE TO SUPPORT MEDSHARE’S EFFORTS GLOBALLY

War Crimes as Policy

I’m going to be discussing some disturbing aspects of the Ukraine War today. Consider this your parental advisory.
 
In the aftermath of the Russia’s failed Kyiv offensive, the world became aware of the omnipresent nature of Russian war crimes. The Russian retreat exposed a raft of abuse, kidnappings, rapes, tortures and murders for the world to see. This awareness has expanded and deepened with every Ukrainian counteroffensive: Kharkiv, Izyum, Lyman, Kherson. European radio intercepts from throughout the occupied territories suggest a universal pattern.
 
Part of these war crimes fall under the category of military operating procedure. When the Russian leadership realized the Ukrainians were not going to simply roll over, Ukraine’s civilian population shifted in the Kremlin mind from a non-issue to an urgent problem. The solution was to target civilian infrastructure to make the land broadly uninhabitable. The goal was to convince as much of the population as possible to flee. Refugees leave and don’t fight. War crimes in a military-strategic sense.
 
At the local level, war crimes perpetrated against those who remained behind have been far more…personal. There is now ample proof from many of the liberated towns of not simply Russian soldiers robbing and killing civilians, but of unit commanders setting up rape clinics and torture chambers for use by the men under their command. War crimes in a tactical sense.
 
But the common thread in all this is that the war crimes have been…casual. Even incidental. While the Kremlin clearly hasn’t had a problem with any of it, it is not clear the Kremlin actually ordered the mal-behavior. Most of those torture centers were not set up in occupation headquarters, but in seemingly randomly-selected homes or schools or gardens. There is little evidence the occupiers were attempting to extract information. They just wanted to make people scream. The very existence of rape clinics speaks for itself.
 
As you would expect from casual crimes, there was zero effort to conceal such criminal activity. Maybe the Russians thought as I did during the war’s early months: that Russia could not help but win the war, and so there was no risk of discovery by authorities who might call them to account. The alternative, that the Russians just didn’t see anything wrong with what they were doing, is difficult to wrap the mind around. I don’t know and I’m not sure I want to understand this sort of behavior. It isn’t so much callous and immoral as pervasive and amoral. Bodies were dumped into mass graves purely as a disposal strategy. The Russians didn’t attempt to hide anything. There was no burning to destroy evidence, or even efforts to rehabilitate the soil above the mass graves to obscure them. Murder victims from the rape and torture clinics were simply dumped nearby. Typically right outside. Sometimes in the next room.
 
With the bulk of Europe’s war crimes investigators now operating in Ukraine, fresh atrocities are being discovered almost daily. The challenge isn’t to find evidence. It is everywhere. No, the challenge is to fully document the tsunami of carnage before a stray artillery round damages the evidence, or before the Ukrainians liberate another town with its own encyclopedia of horrors, forcing the investigators to move on.
 
One more item is unique about this war. Even at the height of the Holocaust, the Nazi government didn’t discuss what they were doing publicly, and what (little) discussion there was across German society strongly denied what was occurring. That is not contemporary Russia. Russian propaganda is screaming for the deliberate and thorough targeting of the Ukrainian population.
 
Which brings us to today.
 
On October 10 the Russians unleashed their biggest missile barrage of the war, sending over 100 large-scale munitions across Ukraine. To my knowledge, at the time of this writing roughly eight hours after the first missiles fell, only one target of “military” significance was hit: the office of Ukrainian President Volodymyr Zelensky. Instead, nearly all missiles were aimed at densely populated regions, with the bulk of the assault occurring during rush hour when Ukrainians were out and about.
 
The targets and timing tell us one of two things: either that the Russians are running out of precision munitions and were doing little more than flinging ordinance in the general direction of population clusters, or that the express goal was to kill the maximum number of civilians. Both could be true. Both are very clearly war crimes. But this time, the war crimes are in the full light of day for the world to see. Russian state media is abuzz with excitement at the damage inflicted. And that is new.
 
The shift in approach is the hallmark of Russian General Sergei Surovikin, the new commander of the Russian war effort. He was appointed but two days before today’s missile swarm. Surovikin is greatly respected by the genocide wing of Russian society, with none other than Yevegeny Progozhin calling him “Russia’s best general”. Progozhin is the founder of the Wagner Group, the paramilitary organization the Russian government uses to provide a fig leaf of legal separation between its war-crime-riddled operations around the world and the Kremlin. Specifically, Surovikin was the commander responsible for the siege-starve-surrender policy that destroyed Aleppo in the Syrian Civil War.
 
Russian cruelty in the Ukraine War to this point has had the feel of standard operating procedure, rather than any conscious state effort to inflict human suffering. That now appears to be changing. Surovikin’s elevation to theater commander means Putin has decided war crimes are to no longer to be casual, but deliberate. No longer incidental, but celebrated. The new approach combines the statist aspects of Nazi-style genocide with lynching. Russia is becoming a maskless KKK in state form.
 
As the reality of the new tenors and goals of Russian operations sinks through layers of disbelief and incomprehension, views will shift.
 
In the United States, I have to believe that the public nature of today’s attacks combined with the loudly-publicized atrocities to come will finally break the hold Russian state propaganda has on the Republican Party. It’s funny. Rationalizing Russian actions, siding with the Russians on nuclear policy, asserting that Russia’s aggression is somehow America’s fault, calling Russia’s victims fascists – these aren’t only old pieces of Soviet propaganda which date back to the 1970s, they are the same lies which once fooled the idiot wing of the American Left until just a few years ago. Having egg on one’s face is never fun, but with the evidence no longer simply mounting but soon to be showcased on Russian television, scales will fall from eyes and positions will change. Elon Musk, fresh off asking the Ukrainians to surrender territory, must feel particularly…the correct word is probably “stupid”. We might – might – even see Fox’s Tucker Carlson edge somewhat closer to reality in the weeks ahead.
 
Of far greater importance than American domestic realizations will be the sucker-punch to the European gut, that history is well and truly back. That there is no returning to the cozy pre-Trump era when the Americans paid for everything but asked for little, and the Russians were happy to limit their abuses to their own population while dumping a half a continent of raw materials into Europe’s waiting arms.
 
Nowhere will the shift in mindset be more laden with implications and haunted by history than in Germany. That their consulate in Kyiv was destroyed in today’s attack underlines the point for Berlin. Germans have a visceral understanding of precisely where Russia’s new path leads, and they fear – probably rightly – that the Russians are on a sharper angle down than 1930s and 1940s Germany. Expect the Germans, within their limited capacity, to up their actions to support Ukraine while intensifying efforts to sequester all things Russian from the European system. It is a position which will hurt the German economy badly, but with most Russian energy already cut out of German supplies, much of the economic damage has already been done and is irreparable.
 
The emotional damage, however, is yet to come.


We have never and will never charge for our newsletters or videos, but we do have an ask. If you enjoy our products, we ask you consider supporting MedShare by clicking one of the links below. MedShare is an established non-profit organization that helps respond to medical need globally, including to the ongoing crisis in Ukraine.

CLICK HERE TO SUPPORT MEDSHARE’S UKRAINE FUND

CLICK HERE TO SUPPORT MEDSHARE’S EFFORTS GLOBALLY

How Ukraine Wins

A Ukrainian attack has severely damaged the Kerch Strait Bridge, the primary supply line for Russian food, fuel, ammunition and reinforcements into the Crimean Peninsula and southwestern Ukraine. It is, simply put, the single-most important piece of infrastructure in the war.

Should the damage prove to be as serious as it looks – one of the road spans has been dropped, and a fuel train is a burning inferno – it heralds the first true turning point in the Ukraine War. Kerch was not only the most important logistical flow for Russian forces, it was the only logistical flow which remained beyond the range of Ukrainian artillery. If it truly is gone, then the numbers that Russia can throw at this war do not matter nearly as much. If the Russians cannot adequately resupply, this war shifts from its present David & Goliath feel to more of a fight between two peers…with one of those “peers” being backed by the planet’s most powerful military alliance.

One more thing. Kerch is only half the solution to Ukraine’s problems. Now that Ukraine has severed the supply connection, it will need to prevent the Crimea from supplying itself. It would do that by recapturing the cities of Kherson and Nova Kokhova, both on the Dniepr River. From there Ukraine can disable the sluice gate which provides water to the Crimean Canal. Without irrigation, food production in Crimea would drop by at least two-thirds. Unable to ship in food via Kerch, the result (months later) would be a famine from which Russian forces would be unable to recover.

Ugly? Yes. But this is how Ukraine wins.


We have never and will never charge for our newsletters or videos, but we do have an ask. If you enjoy our products, we ask you consider supporting MedShare by clicking one of the links below. MedShare is an established non-profit organization that helps respond to medical need globally, including to the ongoing crisis in Ukraine.

CLICK HERE TO SUPPORT MEDSHARE’S UKRAINE FUND

CLICK HERE TO SUPPORT MEDSHARE’S EFFORTS GLOBALLY

OPEC Announces Production Cuts

The Organization of Petroleum Exporting Countries (OPEC) and Russia announced yesterday that they would be cutting back daily oil production to the tune of about two million barrels per day to help shore up oil prices. I would be more concerned if OPEC wasn’t already struggling to meet its own quotas. 

Chronic underinvestment and a host of technical and…other production issues have been causing significant production declines throughout OPEC member nations, particularly among African producers. Throughout much of 2022, that figure has hovered between 1 and 2 million barrels per day below OPEC production targets. Add in the rest of OPEC+ (the 13 OPEC member states and other significant oil exporters, like Russia) and that figure tips over 3 million. A reduction in target quotas might not have the long-term impact on oil prices they expect, though the market is historically notoriously speculative.

NB: at 1:57 I mention internal financing, but I should have said external. Margaritas…


We have never and will never charge for our newsletters or videos, but we do have an ask. If you enjoy our products, we ask you consider supporting MedShare by clicking one of the links below. MedShare is an established non-profit organization that helps respond to medical need globally, including to the ongoing crisis in Ukraine.

CLICK HERE TO SUPPORT MEDSHARE’S UKRAINE FUND

CLICK HERE TO SUPPORT MEDSHARE’S EFFORTS GLOBALLY

In Kherson, a Turning Point?

Ukrainian forces are poised to rout Russian defensive formations around the critical southern city of Kherson. This comes weeks after a planned counter offensive went into effect, but on the heels of significant gains made against Russian troops in Ukraine’s northeast, which saw Kyiv recapture Izium and and the strategic rail hub of Lyman.

The battle for Kherson will represent a significant bellwether in the current phase of the Ukraine conflict. Russia’s best troops and equipment are stationed there. If they dissolve, as have other fronts in recent weeks, not only does this have significant implications for Russia itself but the capture of advanced Russian equipment by Kyiv’s forces will represent a larger and more significant transfer than nearly anything NATO has provided up to this point.


We have never and will never charge for our newsletters or videos, but we do have an ask. If you enjoy our products, we ask you consider supporting MedShare by clicking one of the links below. MedShare is an established non-profit organization that helps respond to medical need globally, including to the ongoing crisis in Ukraine.

CLICK HERE TO SUPPORT MEDSHARE’S UKRAINE FUND

CLICK HERE TO SUPPORT MEDSHARE’S EFFORTS GLOBALLY

Brazil’s Presidential Election Showdown

Brazilians will return to polls later this month to vote in a presidential run-off election between former president Luiz Inácio Lula da Silva, known popularly as Lula, and firebrand current president Jair Messias Bolsonaro. Run-offs aren’t usually this closely watched in Brazil, except for the fact that there has already been political violence and Bolsonaro has been campaigning on a steady message of anti-media, anti-institutional trust, and claims that any election he does not win is one that has been stolen from him. That he did significantly better in the first round than many polls had predicted has given him and his supporters a shot in the arm. 

Brazil is the second largest economy in the Americas, after the United States. It is a significant exporter of industrial materials and agricultural commodities. Brazil’s constitution dates back to 1988, and the first elections it held after the 1964 military coup were in 1989, meaning Brazilian electoral traditions are only as old as Taylor Swift. We are seeing the greatest challenge to Brazil’s democratic norms and traditions since their implementation, and that is a sobering thought. It’s not so much what Bolsonaro might do, as much as what he has promised.


We have never and will never charge for our newsletters or videos, but we do have an ask. If you enjoy our products, we ask you consider supporting MedShare by clicking one of the links below. MedShare is an established non-profit organization that helps respond to medical need globally, including to the ongoing crisis in Ukraine.

CLICK HERE TO SUPPORT MEDSHARE’S UKRAINE FUND

CLICK HERE TO SUPPORT MEDSHARE’S EFFORTS GLOBALLY

London Bridge Is Falling Down

Last week (when the following video was recorded) saw the British Pound get pummeled by global markets following the announcement of the Truss’ governments “mini-budget.” The Bank of England intervened to help support the currency while newly-instated Prime Minister Liz Truss appears to have taken a few days to avoid the media spotlight, but the episode has eroded whatever support her weeks-old government had hoped to cobble together. 

This is a short term problem, however, that pales in comparison to the larger challenge facing the United Kingdom, its economy, and ultimately its place in the world. London emerged as a financial hub for a vast, global empire. After the World Wars, London survived as a clearing house of sorts for the broader EU–particularly between the EU and external economies, such as the United States and Asia. 

Brexit did away with all of that. And the British still haven’t figured out what comes next. Some colour:


We have never and will never charge for our newsletters or videos, but we do have an ask. If you enjoy our products, we ask you consider supporting MedShare by clicking one of the links below. MedShare is an established non-profit organization that helps respond to medical need globally, including to the ongoing crisis in Ukraine.

CLICK HERE TO SUPPORT MEDSHARE’S UKRAINE FUND

CLICK HERE TO SUPPORT MEDSHARE’S EFFORTS GLOBALLY