Have you ever heard of Pippa Malmgren? Maybe you have—not everyone is as ignorant of current events and culture as I am. Let's just say she has a very broad knowledge and experience base, and is absolutely fascinating in this 1.5-hour podcast with Ed D'Agostino, where she expounds on geopolitical, social, and economic realities, and how they connect. (bold emphasis mine)
I haven't listened to the podcast; instead I read the transcript, which you can find here: The Space Wars Are Here. Take your pick; I'm a fast reader, and generally prefer print to audio, but the podcast at double speed might have actually been faster. If you can make the time, I'd recommend it. It's good stuff, and unfortunately may be important to be aware of.
Here are some time stamps, followed by a small handful of excerpts:
00:00 Introduction to guest and what we talk about
03:28 The real story behind the “coup” in Russia
08:10 A Ukraine resolution has become a NATO imperative
15:19 How China and Taiwan fit into the Ukraine peace negotiations
24:02 We are already in WWIII
25:18 The invisible war in space
34:43 How tech innovation solves tech vulnerabilities
41:10 The mood in Washington and across the country in general
51:50 The rise of political angst in America, and what might be driving it
1:03:12 The economic “elevator” in the US is broken
1:08:58 Thoughts on the US presidential election
On the Russian side, I always think the most wonderful quote is really apt here. It came from Carl von Bismarck, who was the Iron Chancellor and who knew more about diplomacy than anybody alive today, and he said, "Diplomacy is the art of building ladders for others to climb down." And that's the situation we have here, is that Putin in some ways, he has no exit from what has turned out to be a terrible situation, and so this is not about being nice to him. It's like you're dealing with a cornered caged creature that is going to behave worse, until they can find a way to escape the situation.
There's an active strategy that the US is literally airlifting the most valuable parts of the semiconductor production in Taiwan, which are mainly those Dutch lithography machines, which cost 250 grand each, I think, and they're moving them to Texas and Arizona. And they're moving the families, because you need a certain amount of skill to operate these things. There's been lots in the press in the United States about we don't have the skills to make super edgy semiconductors, but the Taiwanese know how to do this. And those families are like, "Great, I'll just become American. How fabulous." ... I also see semiconductor production moving into space. We're going to have in orbit manufacturing that produces much higher grade computer chips at a lower cost.
We're in a hot war in cold places. Now those cold places are space, the Arctic, and the High North. People are like, "What do you mean we're at war in space?" I'm like, well, okay, so let's remember we live in a GPS world, and so we're completely dependent on satellites for not only missile guidance, but frankly, Uber Eats, right? None of this happens. ...
So what's been happening in space? The Russians have been targeting their own satellites, particularly the really big ones that weigh like 4,000 pounds, smashing them to smithereens, creating this huge debris field, which they call a Kessler effect, which has been described as razor blades in a washing machine. And that is partly what has forced the International Space Station to nearly evacuate on a few occasions, because they're getting caught in the shrapnel field that the Russians created. Now, why did they do it? Because they're trying to deny access to those critical orbits. ... The Chinese have also been very active in space, demonstrating they have lasers and all kinds of offensive capabilities, but two things there. One is only the United States and China have satellites with robotic arms. And the Chinese recently demonstrated with, I believe it's called the Shijian-17 satellite, that it was able to go up to a Chinese satellite, grab it with the robotic arms, and then hurl it into outer space. Now, why are they hurling their own satellite into outer space? To show us that they can. And so we're like, "Oh boy, all our satellites that we depend on could be gone in a heartbeat, and never to recover into the depths of space." So this is space wars.
It also has led to a fight over subsea internet cables. ... The fastest internet cable in the world is on a little island in the Arctic called Svalbard in Norway. Now, why is it there, of all places? Because that is where pretty much all the high altitude satellites connect to Earth, is at Svalbard. So you cut that cable, and suddenly your missile guidance system's not working, and your Uber Eats isn't neither. So how much damage can you do to the world? Answer, a huge amount. But luckily, that was a lot of redundancy already built in. ... It's such a wonderful story, it's so interesting. There was a oligarch yacht positioned over the top of the cable, and that yacht had a submarine inside it, but they think that, and I'll just say, we don't know who did this, right? And nobody wants to acknowledge who did it, but somebody's submarines went underneath it, and they cut away, I think it was six and a half kilometers of [cable]. Somebody cut it at both ends and took it away. Luckily, it was redundant. But it was the opening salvo to my mind of World War III.
There's this invisible war that it's there if you look for it, but because no one's given you the overarching narrative of this World War III happening in these spaces, in these ways, most people just don't even see it. And then that's just the hot war in cold places. I've also said we're in a cold war in hot places, which is what I've described in the Pacific and Africa. And I'm about to do a piece talking about the hot war in hot places, because now the coup in Niger, and the string of coups across Africa, it's literally heating up into a regional war, where it's ultimately the Russians versus the West.
I feel like this is coming to a head, some of what was happening in this country politically, where you had far left and far right people ... I'm going to try to thread the needle on this, but you had one side not understanding the other, and I almost feel like that was a distraction put out on purpose by the political class, if you will. I've abandoned the idea of there being this real left versus right divide. I'm sure there is to some extent, but I feel like the bigger divide is really those with political power and everybody else, all the rest of us. There was a song released last week by a little known singer in West Virginia named Oliver Anthony and this guy, he was doing his thing, he's an artist, he's putting his music out on YouTube and getting maybe a few hundred views. Then he released a song that I want to play for you, because I really want to know what you think because this song, last time I looked, after having been posted for eight days on YouTube had already achieved 12 million views. I'm sure it's way higher even as I speak, but I think this guy nails really what a lot of people are thinking.
Wouldn't you know? The day I read that paragraph, I had also run into that song elsewhere. The Malmgren podcast had been sitting in my inbox for weeks, and I just happened to get to it the day I heard this song for the first time. Here is Oilver Anthony's Rich Men North of Richmond (which as I write this is up to 61 million views).
Remember those days when everybody said inflation was dead? And I'm like, "Listen, as an economist, I'm telling you, when you throw free money in the system and you drop interest rates to zero, the only purpose is to create inflation." ... What we did is we tipped the balance in favor of the speculators, at the expense of the savers. And the savers are now feeling it, or the people who don't have any savings, they feel it in the form of, "Wait a minute, I'm working this hard, but I can't feed my family." And this is what gives rise to Trumpism. ... Inflation hits the poor really hard and really fast.
One of the trends that I find really heartening is that a lot of companies in America, particularly regional, large, medium-sized businesses, so not your Fortune 500s, but real companies that generate genuine unimpaired cashflow that do real business, increasingly they've been ... reverting to a very old model, which is, let's hire high school graduates, not even college, let's hire high school graduates and let's offer them that we will train them in the company because the school system isn't even providing the skills that we need. They may have a degree, but we got to train them again from scratch. So, let's bring them in, and then we'll say, "We'll pay for your college education." So you can do that while you work here, but we train you first with our priorities. And so it's the old-fashioned apprenticeship system that the whole German economy was always built on, and that economy has always been very sound because it was focused on small and medium-sized businesses. A lot of family owned businesses, regionally rooted businesses. And that's working well. But of course, that's heretical to say to the education system, which thinks that they own the stamp of approval on whether you're employable or not.
I am very optimistic about the world economy of tomorrow. I see so many new jobs being created, so much innovation that's going to make our lives easier and better. I think the biggest constraint on the future is, number one, we refuse to take advantage of the free time that we're given, because we're so ego-driven. ... We keep wanting to still make more money and have more stuff. So, that's a human problem that can be solved. Second, our most undervalued asset in the world economy are people. And we have this industrial revolution mentality that you have to have a certain degree, and you have to have a certain title, you have to have certain job skills in order to do certain things, which is simply not true. And people are capable of extraordinary things.