Now that cryptocurrencies such as Bitcoin have plummeted from last year’s absurdly high valuations, the techno-utopian mystique of so-called distributed-ledger technologies should be next. The promise to cure the world’s ills through “decentralization” was just a ruse to separate retail investors from their hard-earned real money.
.. Faced with the public spectacle of a market bloodbath, boosters have fled to the last refuge of the crypto scoundrel: a defense of “blockchain,” the distributed-ledger software underpinning all cryptocurrencies. Blockchain has been heralded as a potential panacea for everything from poverty and famine to cancer. In fact, it is the most overhyped – and least useful – technology in human history.
In practice, blockchain is nothing more than a glorified spreadsheet. But it has also become the byword for a libertarian ideology that treats all governments, central banks, traditional financial institutions, and real-world currencies as evil concentrations of power that must be destroyed. Blockchain fundamentalists’ ideal world is one in which all economic activity and human interactions are subject to anarchist or libertarian decentralization. They would like the entirety of social and political life to end up on public ledgers that are supposedly “permissionless” (accessible to everyone) and “trustless” (not reliant on a credible intermediary such as a bank).
.. Yet far from ushering in a utopia, blockchain has given rise to a familiar form of economic hell. A few self-serving white men (there are hardly any women or minorities in the blockchain universe) pretending to be messiahs for the world’s impoverished, marginalized, and unbanked masses claim to have created billions of dollars of wealth out of nothing. But one need only consider the massive centralization of power among cryptocurrency “miners,” exchanges, developers, and wealth holders to see that blockchain is not about decentralization and democracy; it is about greed.2
For example, a small group of companies – mostly located in such bastions of democracy as Russia, Georgia, and China – control between two-thirds and three-quarters of all crypto-mining activity, and all routinely jack up transaction costs to increase their fat profit margins. Apparently, blockchain fanatics would have us put our faith in an anonymous cartel subject to no rule of law, rather than trust central banks and regulated financial intermediaries.
A similar pattern has emerged in cryptocurrency trading. Fully 99% of all transactions occur on centralized exchanges that are hacked on a regular basis. And, unlike with real money, once your crypto wealth is hacked, it is gone forever.
.. Moreover, the centralization of crypto development – for example, fundamentalists have named Ethereum creator Vitalik Buterin a “benevolent dictator for life” – already has given lie to the claim that “code is law,” as if the software underpinning blockchain applications is immutable. The truth is that the developers have absolute power to act as judge and jury. When something goes wrong in one of their buggy “smart” pseudo-contracts and massive hacking occurs, they simply change the code and “fork” a failing coin into another one by arbitrary fiat, revealing the entire “trustless” enterprise to have been untrustworthy from the start.2
.. Lastly, wealth in the crypto universe is even more concentrated than it is in North Korea. Whereas a Gini coefficient of 1.0 means that a single person controls 100% of a country’s income/wealth, North Korea scores 0.86, the rather unequal United States scores 0.41, and Bitcoin scores an astonishing 0.88.2
As should be clear, the claim of “decentralization” is a myth propagated by the pseudo-billionaires who control this pseudo-industry. Now that the retail investors who were suckered into the crypto market have all lost their shirts, the snake-oil salesmen who remain are sitting on piles of fake wealth that will immediately disappear if they try to liquidate their “assets.”
.. Moreover, in cases where distributed-ledger technologies – so-called enterprise DLT – are actually being used, they have nothing to do with blockchain. They are private, centralized, and recorded on just a few controlled ledgers. They require permission for access, which is granted to qualified individuals. And, perhaps most important, they are based on trusted authorities that have established their credibility over time. All of which is to say, these are “blockchains” in name only.3
His 17 months in office have in fact been an exercise in futility for the art-of-the-deal president.
- No deal on immigration.
- No deal on health care.
- No deal on gun control.
- No deal on spending cuts.
- No deal on Nafta.
- No deal on China trade.
- No deal on steel and aluminum imports.
- No deal on Middle East peace.
- No deal on the Qatar blockade.
- No deal on Syria.
- No deal on Russia.
- No deal on Iran.
- No deal on climate change.
- No deal on Pacific trade.
.. Even routine deals sometimes elude Mr. Trump, or he chooses to blow them up.
.. “Trump is an anarchist,” said Jack O’Donnell, a former president of the Trump Plaza Hotel and Casino, who became a sharp critic. “It was his approach in business, it is his approach as president. It does not take good negotiating skills to cause chaos. Will this ever lead to concessions? Maybe, but concessions to what? Not anything that resembles a deal. I just do not see him getting much done.”
.. I don’t think it’s that counterintuitive to say that playing hardball will lead to better trade deals eventually,” said Andy Surabian, a Republican strategist and former aide to Mr. Trump.
.. We’ll see what the final outcome is, but it’s already a success just to get them to the table.”
.. the major tax-cutting package that passed late last year. But even that was negotiated mainly by Republican lawmakers, who said Mr. Trump did not seem engaged in the details.
.. And as legislative challenges go, handing out tax cuts without paying for them is not exactly the hardest thing that politicians do.
.. In effect, the agreement with Mr. Kim is like a deal to sell parts of Trump Tower without settling on a price, date, inspection or financing. It is not nearly as advanced as agreements that President Bill Clinton and Mr. Bush made with North Korea, both of which ultimately collapsed.
.. But no modern president has sold himself on the promise of negotiating skills more than Mr. Trump has. He regularly boasts that deals will be “easy” and “quick” and the best ever.
.. He has pulled out of Mr. Obama’s Iran nuclear deal, Paris climate accord and Trans-Pacific Partnership, but promises to negotiate better versions of those deal have gone nowhere.
.. Mr. Trump set his sights on what he called “the ultimate deal,” meaning peace between the Israelis and Palestinians. He said it was “frankly maybe not as difficult as people have thought.” A year later, his team is only now preparing to release a plan.
.. “What the president seemingly fails to understand is that in foreign policy and in trade policy — unlike in real estate transactions — the parties are all repeat players,”
.. “The country you insult or seek undue advantage over today you will have to work with again tomorrow.”
.. Mr. Trump’s approach so far has been to make expansive demands and apply as much pressure as he can. He argues that crushing sanctions he imposed on North Korea forced Mr. Kim to meet. He now hopes to extract concessions from China, Canada and Europe after slapping punishing tariffs on them.
.. “Trump is a bilateral player, in part because that’s what he is used to from his building days, but also because he keeps himself the king, the decider, the strongman,” said Wendy Sherman, who was Mr. Obama’s lead negotiator on the Iran nuclear deal. “In the case of North Korea, however, he wouldn’t have gotten this far — which isn’t all that far — without the South Koreans or the Chinese.”
.. When he gave up on immigration on Friday, he blamed it on Senate Democrats, even though the immediate impasse was among House Republicans who do not need the other party to pass a bill.
.. “Republicans should stop wasting their time on Immigration until after we elect more Senators and Congressmen/women in November,”
.. It was in effect an acknowledgment by Mr. Trump that he cannot reach across the aisle and can only govern with Republicans.
.. the challenge on immigration is that the president has to grapple not just with Democrats but also with Republicans who do not share his philosophy on the issue.
.. Mr. O’Donnell, the former casino president, said Mr. Trump has always oversold his deal-making skills. The casino he managed, Mr. O’Donnell noted, brought in $100 million a year yet still went bankrupt.
.. “The fact is, Trump casinos should have been one of the greatest success stories in the history of casino gambling, but bad deal making caused him to lose all three properties,” he said.
despite what Trump has claimed, repeatedly, in his public statements since the tragic events there, the willingness to employ organized violence to achieve political goals remains a signature quality of only one side. And it’s not the left.
.. Extremism on the left is real. It can be seen in attempts to stifle the free speech of conservative speakers on university campuses (as at Middlebury and Berkeley); in the belligerent attitudes toward corporations and capitalism expressed, for instance, by some fringes of the Occupy Wall Street crowd and anti-globalization protesters; and among anti-Zionist movements that peddle conspiracy theories (such as the contention that Jews control U.S. foreign policy) to delegitimize Israel.
.. organized and strategic violence and incitement embraced by right-wing extremists, whose leaders profess faith in the necessity of the fight. Nothing the left can do today even comes close to that — and hasn’t for decades.
.. Labor unions battled constantly with railroad barons, industrial tycoons and mining bosses during the Gilded Age. Even while outnumbered and outgunned, usually by private armies that enjoyed the backing of law enforcement and state militias, workers fought in bloody clashes that left dozens dead on battlefields such as Chicago’s Haymarket Square (1886) and West Virginia’s Blair Mountain (1921).
.. for many younger activists who came of age in the postwar era, violence remained a key strategy — even a way of life.
- Inspired by the Black Panthers’ embrace of violence for self-defense, and
- enraged by the escalating war in Vietnam,
- antiwar protesters from New Left organizations such as Students for a Democratic Society (SDS) sought to “bring the war home” to end the fighting abroad.
- This concept culminated in the rioting during the 1968 Democratic convention and on university campuses.
- Radical offshoots including the Weather Underground and the Symbionese Liberation Army took things even further: The former bombed government buildings, and the latter committed homicide, robbery and, famously, kidnapping.
But since the 1960s, left-wing movements in the United States (and in the West writ large) have gradually turned away from violence. There are three main reasons for this.
- The first is practical: It backfired terribly.
- The Vietnam War protesters initially believed that their country was beyond redemption, so a revolution was imperative. This The Vietnam War protesters initially believed that their country was beyond redemption, so a revolution was imperative. This alienated the general public, helped unify a deeply divided conservative movement and emboldened Richard Nixon’s “silent majority.” Violence proved counterproductive to ending the war; if anything, it helped prolong it. and emboldened Richard Nixon’s “silent majority.” Violence proved counterproductive to ending the war; if anything, it helped prolong it.
- Mark Rudd, a leader of the Weather Underground, sounded an unequivocal mea culpa. “Much of what the Weathermen did had the opposite effect of what we intended,” he conceded. “. . . We isolated ourselves from our friends and allies as we helped split the larger antiwar movement around the issue of violence. In general, we played into the hands of the FBI. . . . We might as well have been on their payroll.”
- The left’s second reason for rejecting violence was even simpler: There were better ways to get things done. The civil rights and feminist movements showed that nonviolent protest could achieve tangible political goals.
- it was not based only on ethical principles of Christian brotherly love but also on shrewd political calculations.
- The lesson: There was no point in challenging the legitimacy of a government that enabled them to accomplish many, albeit not all, of their goals through the democratic process.
- the modern left, which coalesced around George McGovern’s quixotic 1972 presidential run, effectively represented a gathering of fugitives.
- African Americans,
- gay men and lesbians,
- Native Americans, and
- These long-ostracized groups, which came to replace the New Deal coalition anchored by the white working class, were the very peoples against whom violence had been done for so long.
- Their painful histories made them instinctively averse to, and intolerant of, political violence. Those who had survived lynchings, beatings, bombings, sexual violence, forced removals and economic exploitation were least disposed to employ them in return.
- Antifa is mostly anarchist in nature; its members are suspicious and dismissive of the left’s embrace of government institutions. More important, it is loosely banded, disorganized and low scale. Brawling on campuses, throwing rocks or vandalizing property is reprehensible and illegal. But it is incomparable to the scope and breadth of organized violence demonstrated by the extreme right.
The left has successfully integrated into most political, economic and cultural facets of the country, but members of the extreme right say they have been
- devastated by the economic effects of globalization,
- disempowered by multiculturalism and
- disenfranchised by the election of the nation’s first African American president.
.. Organized militias that are well armed, well trained and well networked have seen a particular spike since the beginning of the Obama presidency.
.. “Sovereign citizens” are armed to the teeth and willing to challenge officials, as they did in last year’s armed standoff at the Malheur National Wildlife Refuge in Oregon. Many such militiamen have killed or injured local police.
.. They pose a greater threat than the Islamic State or al-Qaeda, according to a 2016 U.S. government report: “Of the 85 violent extremist incidents that resulted in death since September 12, 2001,
- far right wing violent extremist groups were responsible for 62 (73 percent) while
- radical Islamist violent extremists were responsible for 23 (27 percent).”