I am lucky to be able to vote in the US as well as NZ, and very much relish the opportunity in both countries. In the US I am registered as a voter in Florida, which is a closed primary state. “Closed” primary states are those in which a voter has to declare a party preference prior to the primaries in order to vote in them. For years before and after I established a residence in Florida I listed my political affiliation as “Independent,” something that allowed me to choose a primary to vote in the “open” primary states where voting preferences did not have to be declared prior to primary season (they only have to be declared and ticked off on the day at the balloting station). In 2008 I decided to switch my declared affiliation to Democrat so that I could vote in the Florida Democratic Party primary given that not only were Obama and Hillary running for president, but there were races for the US House, Senate and local seats that needed to see Republicans defeated.
This year I am going to switch affiliation to Republican. Why? Because that way I can vote for Donald Trump in the Republican primary in the hope that he makes it to the GOP National Convention next July. It has been a very long time since either major party has had a brokered convention where several candidates are in the running for the presidential nomination, and should The Donald survive until then the craziness will be well and truly on. Since he is totally unqualified to be dog catcher much less president and unelectable in the general election, it is my sincere hope that he hangs in all the way to the convention and either becomes the GOP candidate, determines who is, or runs a third party candidacy after losing out in the convention to one of the others. The only thing better would be for Kanye to join that gaggle of fools and trolls but, alas, he is going to wait until 2020 to run.
Already The Donald has become to the GOP what Miley Cyrus is to pop muzak: a wrecking ball. The Republican National Committee must be choking on their Cohibas (illegal until the recent diplomatic reopening with Cuba) and dying a slow death every time he speaks or when they read the polls. Because let us be clear: Trump appeals to the stupidest, xenophobic, economically illiterate, racist, bigoted, misogynist, white cultural supremacist elements in US society. He follows in a long line of populist demagogues that extends back through Ross Perot to Pat Buchanan, George Wallace and Huey Long. He may purport to speak unvarnished truth but in fact what he says is most often non-sensical rubbish that fails to address reality much less the intricacies of democratic governance with a division of powers: he is going to “do the deal” with whomever; most Mexicans are rapists and drug dealers; he will “build a wall and make Mexico pay for it” (along 1,900 miles of topographically challenging terrain that includes numerous sensitive ecological zones and wildlife corridors); he will deport “illegals ” and their “anchor babies,” (all 14 million of them); he will simultaneously confront China, Iran and Russia; he will make the US military “great” again so that no one will “mess” with it (forgetting that the US spends more on defense than the next seven countries combined–US$610 billion or 20 percent of US federal spending and 3.7 percent of GDP–and still has people “messing” with it); he will provide better women’s health care in spite of gutting Planned Parenthood and removing health care for “alien” women because he “cherishes” women in general (ignoring the fact that two of his wives were not citizens when he married them). Everyone in politics but him are incompetent or idiots. His speeches are endless repeats of these and other inane mantras interspersed with self-congratulatory self-praise and personal insults directed at his rivals, all other politicians and anyone who disagrees with him.
The truth is that he has no plan, has no policy agenda, has no friggin’ clue what it is like to deal with the complex issues that confront the US. And that is why the rednecks and dimwits like him. He makes the hard seem easy.
What is great about this is that he is forcing the other GOP candidates to respond to him, and they have stepped up to the plate in predictable style. Among other gems, Ben Carson (the neurosurgeon) says homosexuality is a choice because men go to prison straight and come out gay; Scott Walker just suggested that building a 3,987 mile wall on the Canadian border is worth looking into; Jeb Bush wants to abolish Planned Parenthood and believes that the invasion of Iraq “turned out well;” Ted Cruz and Marco Rubio want walls and deportations even though they are children of recent immigrants who were legally documented after, not before their arrivals. They all claim that the US military and its veterans have been crippled by Obama even though it was Bush 43 who ordered them into two simultaneous wars while cutting back veterans benefits as well as the budget for post-combat trauma rehabilitation. They all claim that ISIS is an Obama invention even though it was Dubya’s purge of Saddam’s army that provided the leadership material for what became ISIS’s fighting forces. They all oppose gun control and climate change science and all support hacking, fracking, drilling and spilling regardless of environmental consequence. They all oppose abortion and gay marriage even if some of their past records indicate otherwise. The list of idiocy goes on but should not surprising given that Rick Perry, Rich Santorum, Mike Huckabee and several snivelling weasels remain in contention.
As things stand now, the GOP primary is a circus. There may not be any juggling or animal acts, but there sure are a lot of clowns, and The Donald is the ringmaster. Even if the number of viable candidates drops to 2 or 3 by the time of the GOP convention, it will be Trump who sets the Right’s narrative for the general election. Yippee!
It looks like the US media has decided to sit back and watch the circus unfold. Fox News tried to undermine him in the first debate that it aired, but his nasty personal attacks on the female panelist only strengthened his support among the troglodyte crowd and has forced Fox to backtrack and give him coverage as the Party favourite. All other outlets are content to watch the train wreck proceed while offering the mediocre tedium that passes for informed analysis by the usual spectrum of pundits. As a result, the GOP favourite, Jeb Bush (or “Mr. Low Energy,” as The Donald calls him) has seen his coverage slip to the sidelines along with the other yokels. Likewise, for all of the Fox News chest beating, Hillary Clinton is getting a general pass by the press because her sins are run of the mill when it comes to DC politics and her campaign is about practicable policy, not theatrics.
The key to the outcome will be seen in January when the first GOP primaries are held. If The Donald does well in them he will be hard to stop. So the RNC has to find a way to do him in either before then or to go all out nuclear on him should he prevail in Iowa or New Hampshire. That is when the questions about his draft dodging, drug use, association with organised crime, commercial racism, trust fund baby status, adultery, academic record embellishment and a host of other peccadilloes and not-so-small sins will find their way into the mainstream media. But even then he may be too big a juggernaut to derail in time for the GOP to coalesce around another candidate who may stand a chance in the general election.
I cannot begin to express how delighted I am to watch this unfold. The Donald may well force the GOP to split into two, with the Tea Baggers on one side and the corporate sponsors on the other.
Either way, he is single-handedly killing the US Right as a unified political force.
For that I have one thing to say: Go The Donald!
Posted on 14:40, August 27th, 2015 by Pablo
Readers will know that I expressed my unhappiness with the composition of the Intelligence Review committee and my belief that, save some cosmetic changes, a whitewash of the NZ intelligence community (NZIC) could be in the offing. Although I spoke with several people who were making public submissions to the committee (the deadline for which has passed), I decided not to waste my time given the press of other business and likely futility of doing so.
To my surprise, a month or so ago I was invited to speak privately with the committee, which for those who do not know consists of Sir Michael Cullen and Dame Patsy Reddy. The terms of reference for the committee are quite narrow on the face of it but I took the view that they can be interpreted more broadly in the context of the Review. The two major terms of reference focus on whether the legislative frameworks governing the New Zealand Intelligence Committee (NZIC, and GCSB and NZSIS in particular) “are well placed to protect New Zealand’s current future national security, while protecting individual rights; (and)..whether the current oversight arrangements provide sufficient safeguards at an operational, judicial and political level to ensure that the GCSB and NZSIS act lawfully and maintain public confidence.”
More specific matters subject to the Review include whether the 2014 Foreign Fighters Act should be extended or modified before its March 31 2017 expiry date; and whether the definition of ‘private communication’ in the GCSB legislation is satisfactory.
I decided that I would accept the opportunity to speak with Sir Michael and Dame Patsy in spite of my reservations about the Review process. Without going into the details of the meeting, here is some of what I outlined to them.
I started off by noting that much of the commentary about the NZIC was mistaken in its classification of the GCSB as the “foreign” spy agency and the NZSIS as the “domestic” spy agency. I pointed out that the proper classification was that the GCSB is the signals and technical intelligence agency (SIGINT and TECHINT in the parlance) and that the NZIS is the human intelligence agency (HUMINT). Both have domestic as well as foreign espionage roles, although these needed to be explicitly detailed in law and circumscribed as much as possible when it came to the domestic side of the fence.
I continued by stating that the Countering Foreign Terrorist Fighters Act needs to be abolished. People who commit violent crimes abroad, particularly war crimes and crimes against humanity, can be detained and/or charged under criminal law and extradited to face justice in the jurisdictions in which the crimes were committed. If that is not possible they can be tried by the International Court of Justice in The Hague. This is true whether they are identified as individuals or as members of a group that commits atrocities. So long as there is evidence of involvement in criminal acts, there currently are means of ensuring they face justice without politicising the cause.
I said no to the idea of revoking their passports to prevent their return and noted that the presumption of innocence should apply to returning fighters who are not implicated in atrocities even if they were involved in foreign conflicts. I also noted that according to Western intelligence estimates, less than 50 percent of those who travel to fight with ISIS return alive, and of those the vast majority are too traumatised to consider committing acts of violence on home soil.
We had a lengthy discussion on what constitutes a “private communication.” The 2014 GCSB Act states that it anything a person could reasonably expect to be public in nature, say a Twitter or Facebook posting or even email on providers such as Google or Yahoo that data mine their clients information for advertising purposes (all of which is voluntarily agreed to by clients under the terms of service, which is what they are required to tick off on before setting up an account). I feel that definition is too vague, broad and permissive when it comes to GCSB powers of electronic surveillance. My bottom line is that a private electronic communication is akin to a dinner table conversation: that which a person has a reasonable expectation will not be repeated or listened to by people outside of the immediate context in which it was made. I noted that personal data mining for advertising purposes was a bit different than the State doing so for security purposes–especially when it does so without consent (since I doubt many people ticked a box allowing the GCSB or other intelligence agencies to monitor their private communications).
If the authorities cannot read our snail mail letters without a warrant or consent, I do not believe that they can read our electronic mail without such either. That still leaves the issue of meta-data and bulk collection, but as I have written before, I do not believe that the latter is equivalent to mass surveillance for technical as well as legal reasons.
With regard to legislation, I suggested that the Search and Surveillance Act needs to be narrowed because it has been expanded too much as a result of post 9/11 hysteria. I also suggested that the GCSB Act be reviewed and narrowed with regards to its powers of domestic espionage. Although I have no real problem with its “Assistance” role when it comes to aiding the NZSIS or Police on home soil, and fully understand that the Act needed to be upgraded to cope with cyber espionage, crime and warfare, I believe that its powers of warrantless surveillance on NZ soil are too broad and intrusive. Narrowing the GCSB Act would still allow the GCSB to engage in defensive measures and counter-espionage with or without the help of its sister agencies, but it would prevent it from conducting offensive operations against NZ domestic targets without a warrant.
Most of what I had to say about legislation consisted of a proposal that the NZSIS Act be amended so that it is stripped of its domestic espionage and security vetting functions. Those should be moved to the NZ Police (who need to be resourced accordingly), since the Police already do much domestic spying and background checks. Perhaps even an FBI or MI5-type civilian domestic espionage agency could be created that answers directly to Crown Law if not the Attorney General (fully understanding the political nature of the latter). The reason for this proposal is that as things stand the NZSIS does foreign human intelligence gathering, domestic human intelligence gathering, counter-espionage and security vetting. An agency of 300 people (counting clerical staff) might be able to do one, perhaps two of these tasks adequately, but it simply cannot do all four anywhere close to efficiently or effectively. Since the type of signal and technical intelligence collected by the GCSB and its foreign partners can only paint part of any given intelligence picture, it behooves the NZSIS to complement that with an autonomous human intelligence capability that focuses on areas of foreign policy priority or concern. It is important to know about the context–as in culture, mores, norms, personalities, interests and attendant modes of behaviour–in which signals and technical intelligence is obtained, and that should be done independently by NZ in areas of priority interest (say, the South Pacific).
In terms of oversight I noted the gross inadequacy of the current “arrangements.” I suggested that there needs to be better parliamentary and judicial oversight of the NZIC, and that this has to be proactive as well as retroactive in nature. If I was running the show I would leave the Inspector General of Intelligence and Security (IG) as the in-house executive branch oversight mechanism, perhaps by re-locating the IG office to Crown Law jurisdiction and out of the immediate control (via resourcing) of the NZIC and Prime Minister’s office (DPMC). I also have little issue with the current state of the Commissioner of Warrants and Minister of Intelligence and Security signing off on warrants.
Yet I spent considerable time explaining how important a division of powers is when it comes to intelligence oversight in order to avoid bureaucratic “capture” by the NZIC. I proposed that a dedicated parliamentary committee on Intelligence and Security be created, as an agency of parliament with its own permanent staff, that would have proactive and retroactive powers of compulsion under oath. This agency would serve as the non-partisan, apolitical support base for the Select Committee on Intelligence and Security comprised of politicians, and that the Select Committee include members from all parties that receive over 5 percent in the previous election distributed proportionally, with the PM serving as the tie-breaking vote.
Both the Select Committee and permanent staff would have the ability to investigate operational matters and scrutinise classified material rather than rely on unclassified summaries provided by the Directors of the GCSB, NZSIS and other intelligence shops like the NAB. This would require them to sign secrecy oaths but so be it–if they want to sit at the table that is the price the politicians will have to pay (the permanent staff of the committee will of course have been security vetted in order to receive clearance to handle classified material). I fully realise that all of this will cost money and encounter bureaucratic and political resistance, but I think it is very important to undertake these reforms in order to prevent the type of NZIC excesses that have brought us to the current moment.
In order to resolve disagreements and arbitrate disputes between the NZIC, the IG and parliamentary committee on matters of lawful and unlawful NZIC activities, I suggested that an intelligence tribunal or juridical review panel be formed using High Court justices, QCs or other distinguished jurists. This would serve as the court of last recourse and final appeal on all matters pertaining to the legality of NZIC operations.
Finally, I reiterated my belief that Edward Snowden provided NZ with the opportunity to re-negotiate some of the terms of agreement with its 5 Eyes partners. These will not disrupt the core of the agreement, much less result in NZ’s exit from 5 Eyes. But it could allow NZ to withdraw from conducting front-line offensive intelligence operations against states that have great leverage on it, be it in trade or other areas vital to NZ’s well-being. Thus, for example, NZ could ask to not take the lead in spying on the Chinese in the South Pacific simply because if that were to be made public the Chinese would have to respond even if just to save face (and I believe that the need to respond involves a heck of a lot more than matters of national pride or “honour”). The PRC cannot retaliate to any punishing extent against the other 5 Eye partners given the strategic leverage these have relative to it. But little ‘ole NZ is very vulnerable on that score and could be an easy whipping boy for the Chinese should they want to get the message out that impudent small nations mess with it at their peril.
This re-negotiation does not preclude from NZ doing defensive spying and counter-espionage against any state or non-state actor. But it keeps NZ out of the line of fire of aggrieved large powers should the nature and extent of 5 Eyes espionage continue to be publicly exposed thanks to the Snowden material.
The response of the committee was polite but succinct: the last suggestion was beyond their terms of reference.
For all the talk about bias and dumbassery in NZ’s media, no one seems to be doing anything about it. In fact, some of those who should know better seem hell bent on aggravating the problem. Proof of this is the announcement that the new Backbencher’s temporary replacement co-host will be a blond snow bunny and rugby WAG turned dancer and sports show hostess. Apparently she is doing an undergrad degree in Politics, which therefore qualifies her for the job.
There are many politically astute thinking women in NZ. Heck, there are former politicians, sharp media commentators, activists, diplomats and even a few politics lecturers that are female, all of whom could have handled the job with credibility and insight. But noooooooo. The blond bubbly lass got the nod. Judging from his comments on FB Wallace Chapman is chuffed with the selection.
I realise that Backbenchers is not exactly a serious political show. Adding this particular female may just be in line with its off-kilter approach, or perhaps the decision was dictated by the network that she is contracted with and which airs the show. But I doubt very much that Mr. Chapman or Damien Christie, the co-host being replaced in this instance, consider themselves to be jokesters or eye candy. So why introduce one now when there are plenty of better options available?
Perhaps it is a ratings grab of some sort, aimed at a particular demographic. Hopefully it will be nothing but a silly one-off, never to be repeated or remembered again. But as it stands, and at the risk of being called a party pooper, it strikes me that not only is this appointment an insult to every serious and informed woman in the country. It is also irrefutable evidence that the NZ media is in a state of terminal decay, no matter how pretty it is dressed up. And if the episode with the blonde turns out to be a success, it is further proof that NZ civilisation has gone terminal late Roman in nature.
I attended the Auckland public meeting on the Intelligence Review organised by the NZ Council on Civil Liberties and a coalition of activist groups under the “Get Smart” banner. The idea was to encourage the public to join in submitting a “People’s Review” of the NZ intelligence community that would go beyond the rather narrow terms of reference of the formal Review undertaken by Michael Cullen and Patsy Reddy. The meeting was held in a inner suburb library hall at 6:30 on a Thursday night. It had the makings of a stirring call to popular participation and civic action.
Counting myself, a total of ten people showed up to listen to the speakers and debate issues relevant to the Review. The speakers spoke about the evils and sins of the CIA, GCSB and SIS at home and abroad, about the dangers of recent expansions of spy agencies powers and related legislation such as the hastily passed foreign fighters bill, and about the patently bogus questions asked on the public submission forms for the Review (such as asking if people felt that the government should protect them from terrorism). But truth be told, the empty hall echoed with the sound of apathy. Not so much from those of us who attended and spoke, but from those who did not.
In any event it was a pretty dreary and dispiriting affair. Nowhere to be seen were those who championed Kim Dotcom’s “Moment of Truth” or the voluminous clouds of conspiracy-mongering that went with it. From what I could tell, there was no one from UNITE, MANA, Internet Party, GPJA or any other activist group other than the Communist League. The usual assortment of Left pundits and party progressives, from the bombastic to the erudite, were nowhere to be seen. It was so bad, even Penny Bright did not show up.
I was told that meetings in Christchurch and Wellington were better attended, but from the looks of the Auckland gathering the issue of how, why and when the NZ intelligence community does what it does is no longer of import to local chattering classes, much less the fair minded among them.
I sure hope that I am wrong. I suggested at the meeting that a two pronged approach to the Review needed to be undertaken. On the one hand, the broad questioning of the intelligence community outlined in the terms of the People’s Review is necessary for framing the larger counter-narrative to the official lines spun upon us about the value and benefits of NZ’s intelligence operations. On the other hand, detailed, sophisticated and technical submissions sharply focused on the terms of reference are needed to prevent Cullen and Reddy from claiming that no practicable or actionable information was obtained from the submissions. I offered some thoughts on the need for better intelligence oversight mechanisms and how they could pave the way for further reforms of the intelligence community and legal frameworks governing it.
My comments were preceded by those of a fellow who spoke of spying on Maori at TVNZ. I was followed by a fellow from the Communist League. At that point it was time to take my 18 year old cousin in law back to dinner because even his eyes were rolling in the back of his head.
If this meeting is symptomatic of the state of the NZ Left, then it is well and truly screwed. Or perhaps it is just a Jafa thing.
Police Commissioner Mike Bush on Friday announced that tasers will be deployed for the use of all front-line officers.
The reasoning behind tasers emphasises the taser’s potential for de-escalation — a “less-than-lethal” alternative to shooting someone — sometimes on the basis very limited operational data. In 2009 and early 2010, when the weapons were on limited deployment in Auckland and Wellington, 10 people were tased, prompting then-Commissioner Howard Broad to write: “It’s pretty clear that in several instances, the person could have been shot with a firearm if Taser hadn’t been available.” The wiggle room here is important: several, could.
Technical and cultural problems
The justification is clearly-articulated: tasers have, the Police say, proven a useful tactical option between OC spray and a firearm. But the evidence is more complex. It is clear from New Zealand Police operational reports that tasers are safe in aggregate — from 2010 to 2014, 87% of situations where a taser was presented were resolved without it being fired, and the injury rate from their use was 1.1%.
How they are used, by whom, against whom
Risks are not evenly distributed. Non-white people are overrepresented in crime statistics, and this must explain some of the increased rates of taser usage against them, but the fact that they are overrepresented is itself a function of the economic, systemic and cultural biases that infuse our society. All else being equal, wider deployment of weapons in the hands of the Police is escalation. It means those at the margins get a double-dose of systemic bias: they’re more likely to be selected as a potential criminal, and once selected, they’re more likely to be subject to violence. Those that are subject to violence then suffer greater harm and have fewer options for recovery or redress.
It is surely with this in mind that Emmy Rākete has requested the Police release whatever research they have conducted into the lethality of tasers, and their potential for abuse. Gina Rangi also asked, on Twitter, about Police training in institutional racism, and the monitoring of it in relation to taser usage. We deserve answers to these queries.
Even the presentation of a taser without it being fired is a strong tactical option, including “laser painting” and “arcing”; explicit threats of force. And although injury rates are low, the fact that tasers are regarded as “less-than-lethal” means they tend to be used more readily than “lethal” tactical options, and are apt to be used as a compliance tool, rather than to defend the safety of Police or the public. In New Zealand, about half the time tasers are used against people who are threatening, but not violent towards Police, and according to Amnesty International, 90% of those who died as a result of taser were unarmed and do not present a serious threat. The New South Wales Ombudsman found that one in seven taser presentations was “inappropriate”, including cases of tasers being used on fleeing suspects and people who had already been handcuffed. “Less-than-lethal” violence can still be a heavy punishment.
These risks are all cultural, not technical. No amount of “less-than-lethal” rhetoric or low recorded-injury rates can adequately address these concerns when the factors leading to the decision to use a taser are not subject to the same scrutiny as its final use. Given that context, and absent significant change in the cultural factors, the wider deployment of tasers is not de-escalation, it is escalation.
Displacing firearms or augmenting the existing arsenal
However, the real trouble with the argument that tasers displace guns isn’t with the claim that tasers are less-lethal than guns, or that they provide better oversight — it’s that that the evidence for displacement is weak, or at best unclear. In New South Wales, firearm presentations by police remained steady at about 800 per year for the three years following the introduction of tasers — while taser usage nearly tripled from 407 presentations to 1,169 over the same period. Similar effects were noted in Canada, where Police have walked back the argument that a taser is a replacement for a firearm:
Given this position — that the taser is not a replacement for a firearm, but an alternative to OC spray and batons — it is clear that wider deployment of a more effective weapon over and above those existing tools, where the ultimate tactical option of firearms does not already exist, means the escalation of violence, not its de-escalation, as a matter of policy.
The limited deployment of firearms is an important difference between New Zealand and the jurisdictions for which good data is available (in Australia and North America), that make these comparisons uncertain. (In the UK, which would be a better comparison, there are strong calls for similar policy.) Given this difference, we may have little to fear — it may be that the deployment of tasers forestalls the routine arming of frontline police for five or 10 or more years longer than it otherwise would have occurred. But as someone pointed out to me on Twitter, the avoidance of hypothetical violence by the application of actual violence also is not de-escalation: you can’t defend giving the Police machine guns on the basis that you have declined to give them tanks as well. The onus is on the Police to demonstrate that their decision to deploy tasers across the force will reduce the use of firearms, and will also be accompanied by more rigorous training and oversight to prevent abuse, and to limit excessive use on the groups who already bear the heaviest burden of Police violence.
– Finnish soldier during the Winter War, 1939
– Red Army general during the Winter War, 1940
With their horrendous Chinese housing investment analysis Labour hoped to start a discussion. Well, they’ve done that. For 11 days until yesterday, the story led, or nearly led the news. The question is: are they happy with the discussion they’ve started?
They may really have wanted a discussion about race, dressed up as a discussion about housing, or they may have genuinely wanted a housing discussion with a slight racial frisson. Regardless of their hopes and ambitions, the party at this point has to have a long, hard look at their choices, for in reality, they’ve had neither of these two things. What they have had is an excruciating public discussion about one of the most boring and alienating topics it is possible to imagine: research ethics and methodology. For eleven straight days, during most of which time they had the agenda to themselves because the Prime Minister was out of the country, Labour has unsuccessfully defended its commitment to good social science practice.
Unsuccessfully, because yesterday, 11 days on, an increasingly frustrated Labour leader was still defending the data. “This is how the debate gets out of control,” said Andrew Little to Patrick Gower — and for once, he was right. “The Auckland housing market is not a morality play,” said housing spokesperson Phil Twyford, and he was right, too, but that’s all anyone has been talking about for 11 days.
Earlier in the day the party’s statistical guru Rob Salmond
This is a horror show. Quite apart from giving unreconstructed racists an opportunity to pretend outrage, and appropriative neo-colonialists grounds to go around trumpeting about the coming race war, Labour has spent 11 days debating the definition of “is”, losing, and looking like mendacious buffoons into the bargain. Quite apart from the vileness of this exercise, it has been handled even more badly than I have come to expect.
They need to just stop. There is no ground to be won by these means, and further fighting will mean more dead to bury. The only poll since the announcement has them effectively stagnant, following a poll taken mostly before the announcement, which had them well up. Pretending nothing is wrong with their work, that their high-minded-if-admittedly-risky project has been hijacked by a mendacious media and the leftist-liberal fifth-column is no kind of strategy, even if it were true. The keys to the twitter accounts need to be taken away and, as much as possible, a dignified silence maintained. Go away and get some evidence, find a way to return the discussion to the issue of housing prices and non-resident investment, because those are serious issues about which we deserve a serious discussion which Labour’s delusional incompetence has rendered impossible.
Posted on 12:03, July 15th, 2015 by Pablo
I have been working on a long term project that focuses on intelligence networks in the South Pacific. A number of off-shoots have stemmed from the central concern (mapping intelligence communities and alliances), including strands dedicated to the NZ intelligence community and the problems of threat assessments in general. In this piece I outline three undervalued concepts in the study of foreign policy and offer some observations as to the causes of Western intelligence failures to adequately adjust, forecast and assess the evolving post Cold War threat environment.
I do not purport to be an economist nor would I ever want to be. Theirs is a world of implicit assumptions and pseudoscience that only a brave few have challenged from within. However, theirs is also a discipline that in theory and practice can shape the fate of millions, which is why I pay more than casual attention to them. Thus it is that I came to ponder the financial situation in Greece, a place that I lived in in 2010 at the start of its downward slope towards the current moment (my wife has researched and written on matters of Greek political economy and I have an interest in Greek civil-military relations, so our stay was mutually beneficial). Here is my non-expert view of things.
When lenders charge interest on principal loaned, they prefer to have the interest paid rather than the principal. This loan repayment rationale, which is true for states, firms and individuals, keeps the debtor beholden to the lender so long as the principal remains unpaid. Over time, the interest accrued can well exceed the amount lent, which is perfectly fine from the lenders point of view but keeps the debtor permanently saddled in a cycle of interest payment unless the debtor earns additional income (revenue) that can be directed towards paying down the principal. Short of a lottery win, a pay raise or new sources of revenue, debtors on relatively fixed incomes are locked into the cycle of debt.
Greece is in that situation. Until 2008 it was servicing the interest payments on its debt to international lenders (mostly the European Central Bank, various national banks and private investors). Then the international financial crisis of 2008-09 hit, which had nothing to do with Greece per se but which drove up interest rates. With a stagnant economy and flat tax revenues, Greece quickly found itself unable to make interest payments and, in a dramatic revelation, announced in 2010 that it had been systematically underestimating its fiscal deficit in order to maintain interest payments on its debt at a sustainable rate. At that point many private investors dumped their Greek debt holdings and the IMF assumed a significant portion of them as well as some of that accrued by European public banks.
The Greeks were subsequently offered two “bailout” loans that allowed them to continue to pay the interest on their debt, which together with the principal now amounts to nearly 250 billion Euros. With interest set at approximately 4 percent annually, the figure is set to reach the half trillion euro mark in a few years. Even if interest rates were capped at zero, it is estimated that it would take Greece 81 years to repay the amount currently owed.
There are several questions arising from the Greek debt. Why, since the interest paid is now more than the principal borrowed, does not the ECB and IMF put a cap on the debt? Why did investors continue to offer loans to Greece when it turned out that the Greeks were fiddling the books, and that neither the principal or the repayment loans ever trickled down to the general public in terms of public goods and services? Why does it expect the Greek population to pay via austerity for the risky borrowing of Greek elites and the even riskier lending of European banks?
Asking the Greek people to shoulder the burden of austerity–in a country with 30 percent general unemployment and 50 percent unemployment for those under 30, with a massive brain drain of educated professionals, porous borders and deep cuts to public sector salaries, pensions and basic services–is akin to forcing the children of crack addicts to starve and swab floors in order to pay for the rehab treatment of their parents. And the outcome is just as uncertain.
Let’s look at it this way. Capitalism is about assuming risk for higher reward. In the financial world, the riskier the investment the higher the interest paid on it. And just like quick finance and pawn shops are located in poor rather than rich neighbourhoods, high interest bonds are issued on “risky” countries with poor credit ratings and histories of financial instability. For “courageous” investors riding the line between high interest and junk bonds, the rewards for so-called bailouts are great. But the downside of a default is that they will have to wear losses, just as many ill-advised investors have to.
Greece is one such high risk place and those who lent to it knew this from the beginning.
With that in mind is is easy to see that the behaviour of the “troika” (the European Commission, European Central Bank and IMF) can be (and has been) likened to loansharking and needs to be treated as such. When people seek debt relief from loansharks, banks or credit card providers, they arrange to repay a capped sum and a payment schedule is established. The alternative is bankruptcy, which leaves the creditor with nothing. Although suboptimal from the lender’s point of view, the capped payment alternative is better than nothing.
When it comes to states, the decision to cap debt is a political decision, not a financial one. That is because the stability of states is more important than the returns on risky investment, especially when ample returns have already been received, many creditors are no longer at risk and demands for future returns put state stability at peril. In the case of Greece there is a twist, in that the referendum on whether to accept austerity was the first political iteration in a multi-step process. Now that the Greeks have refused more austerity, it is the turn of the EC to make a political decision of its own.
Let’s be clear: this is not a Greek crisis; it is a crisis of European finance capital. The demand for more Greek austerity is not about servicing the debt but about humiliation, punishment and deterrence of others who might dare to do the same.
The people who should seek answers are those who invested in the agencies that undertook the high risk lending strategies that have brought us to this moment. The people who are responsible for the crisis are not average Greeks but suits sitting in fancy offices in Athens, Brussels, Frankfurt and London. They are the ones who took the risk on Greece and they are the ones who need to be held to account.
This does not absolve Greeks from their own mistakes. Certainly the culture of entitlement and the pervasive corruption in Greek society needs to be addressed. But here again, this was well known to foreign creditors at the time they lent money to Greece, and for all the everyday petty corruption in Greece involving phantom war veterans and people faking disabilities, it is the Greek political-economic elite who elevated institutional corruption to an art form. Syriza proposes to confront them as well as the lower-level scams but in order to do so it must show that it can negotiate a debt payment agreement that puts the interests of average Greeks first.
There is a way out of the imbroglio that can leave Greece in the EU without undergoing more austerity punishment. In international law there is a concept known as “odious debt.” Odious debts are those that are incurred by governments that do not go to their stated purposes or are ill-gotten from the onset. Under international law, odious debts are the responsibility of the incurring parties and are not the responsibility of their successors. As such, they do not have to be serviced by others if the responsible parties cannot be made to pay.
One can argue that the debt incurred by pre-Syriza governments from 1999-2008 fall into the odious debt category and should be forgiven as such. If anything the political parties in government during the time the debts were incurred can be sued for repayment (these being the Panhellenic Socialist Party (PASOK) and New Democracy (ND)). Whatever happens, it is clear that Greece has not seen the purported benefits of the loans incurred by previous governments (to include the now abandoned or derelict Olympic facilities) but it has paid more than its fair share of interest on them. By any reasonable measure the remaining debt is now odious.
In the end this is a cautionary tale with minor and major sub-plots. The minor plot is about sustainable debt and the limits of debt relief. The major plot is about the perils of political union. The EU needs to understand that how it addresses the minor plot will determine the conclusion of the major one.
Bonus read: Although I do not agree with some of his observations, Brian Easton has a nice short piece on the Greek situation here.
From time to time I am invited to give public presentations on subjects within my areas of interest. Depending on the topic I sometimes offer ideas for the audience to consider. At a think tank gathering last year I offered the suggestion that parliament should consider the proposition that New Zealand be the first country to publicly and formally renounce the use of lethal drones at home and abroad. I pointed out that although security conservatives and military commanders would oppose the move because it limited NZDF (and perhaps in the future NZ Police) tactical options, it was worth debating on moral and legal as well as practical grounds given New Zealand’s unique political culture and international standing. Since 90 percent of what military drones do is non-lethal and the NZDF does not have a lethal drone capability as of yet, it seems worth a try.
That proposition went nowhere. Some left leaning commentators supported the motion (most notably No Right Turn and one of the authors at The Standard). But no a single political party, to include the Greens, Mana and the Internet Party, adopted it as a policy proposition and it was never brought up in parliament.
This year I was at another event that featured academicians, students, policy practitioners, journalists and diplomats (foreign and Kiwi) discussing New Zealand’s past, present and future foreign policy. I was matched with a representative of the New Zealand intelligence community and a security academic on a panel that addressed intelligence issues, specifically, New Zealand’s intelligence role in foreign policy.
As part of the discussion I suggested that Edward Snowden had done us a favour by exposing the extent to which NZ is a fully integrated member of the 5 Eyes signals intelligence network. The reason is that with the revelations that have come from the documents that he passed on to journalists, New Zealand has an opportunity to re-negotiate some of the terms of its participation in 5 Eyes. I noted that withdrawal from 5 Eyes was not an option–I said that it was like trying to leave the mafia. But the specific terms of what the GCSB does for 5 Eyes could be discussed given that New Zealand is by far the most vulnerable of the 5 Eyes partners to retaliation from the countries that it targets as part of the division of labour within Echelon. I specifically mentioned that NZ might broach the subject of reducing its role in spying on China given how trade dependent NZ is on the Asian giant.
A couple of journalists in the room ran stories on the suggestion and the PM was asked about it at his weekly press conference. He rejected it out of hand and said that NZ would not modify its intelligence operations because of trade considerations because what it did in was in the national interest.
The Snowden documents suggest otherwise, but that argument can be left for another moment.
Let me explain why NZ has an opportunity to re-negotiate the terms of its agreement with the Anglophone powers even though it cannot withdraw from 5 Eyes entirely.
If NZ were to withdraw from 5 Eyes it would lose the substantial benefits, unique to a small country, that it accrues from being in an alliance with four bigger partners with global reach. The flow of intelligence within 5 Eyes is very much reciprocal but what NZ receives is far more than what it delivers to the network. It is tasked with using shared technological means located on or operated from NZ soil (including its diplomatic missions) to target specific entities of common interest to the larger partners, and in exchange it receives global as well as more NZ-specific intelligence from those partners.
That is just one reason why withdrawal is unlikely. But think of the consequences if NZ unilaterally decided to opt out of Echelon. It is in possession of some of the most advanced signals interception technologies on the planet. The GCSB knows the processes, procedures, means, methods and protocols of the entire network. Fear that this knowledge and technologies (say, for example, X-Keyscore and Prism) could fall into hostile hands will inevitably prompt a negative response from NZ’s erstwhile intelligence allies, and that response will not be confined to the field of intelligence (I am aware of reports that some of the technologies and methods mentioned in the Snowden documents have been decrypted by Russian and Chinese intelligence but am not sure as to what extent this may have occurred).
Were NZ to try and establish an alternative signals intelligence network with other powers, the remaining 5 Eyes countries would likely move beyond defensive measures and into the field of offensive intelligence operations against NZ. In other words, the exit costs will be too high given the uncertain benefits received in the event of withdrawal.
That being said, the GCSB is integral to 5 Eyes operations. The partners cannot afford to alienate NZ on issues that are critical to NZ but marginal or less costly to them. Although they never thought that their operations would be exposed in the measure that they have, the 5 Eyes partners are now acutely aware, thanks to Snowden, that they rise and fall together when it comes to exposing how they go about signals intelligence acquisition and who they target. They can therefore ill afford to call NZ’s bluff on a matter that is of critical importance to the latter.
I would argue that bilateral trade with China is one such matter. Even if they have a pretty good idea of what the GCSB does for Echelon, public revelation of NZ having a lead role in spying on the Chinese at home and abroad will force the PRC to retaliate in some fashion, even if just to save face as an emerging great power with super power pretensions. It must show that it should not be disrespected and meddled in by small states no matter who those states are allied with. The means by which it can reach out and touch NZ in a bad way are myriad and not confined to diplomatic or economic relations.
The only reason that it would not do so is if it has counter-intelligence access to GCSB operations and wants to keep those “backdoor” channels open in spite of the publication of specifics about NZ espionage against it.
If NZ were to say to its partners that given its vulnerability to Chinese utu the GCSB would prefer not to take a major role in spying on the PRC, it is possible that the other partners will listen and consider the request. The GCSB can still spy on South Pacific, Latin American and other nations that do not have much leverage over it, as well as the UN, various NGOs and private firms as it is doing now. But it would give a pass to spying, at least in a major way outside of NZ territory, on the Chinese.
In my view, such a position would not prevent the GCSB (and SIS) from conducting counter-intelligence operations against Chinese espionage at home and abroad. Even if they know about these defensive measures the Chinese will likely not make an issue of them given that they instigated the back and forth. Where I would draw the line is on offensive operations against Chinese targets, especially when at the behest of the larger partners.
I am not surprised that John Key has no interest in this proposition. To do so requires political courage and a commitment to putting NZ national interests first. Neither is in his repertoire. Plus, even if he were to think about the dilemma posed by NZ’s increasingly counter-poised trade and security interests, any renegotiation along the lines I have posed would be done quietly and not publicly announced, much less at a press Q&A. But I doubt the latter is the case.
In any event, this is a potential moment of opportunity to redefine the terms and conditions of NZ’s involvement in 5 Eyes, however implausible that may seem at first glance. There is a supposed review of the NZ intelligence community now underway that could serve as a sounding board for opinions on the suggestion, and I am happy to add my two cents to the discussion should that be deemed worthwhile.
So this was the headline that greeted me when I opened the Herald on line: “Chris Cairn’s wife accuses Marc Ellis of harassment.” Now, I am not a fan of either Chris Cairn Cairns or Marc Ellis, so wish a pox on both of them. But what galls me about this particular headline is that, once again, some fool copy or sub editor has decided that the female who is the subject of the story should be reduced to the status of someone’s wife. In the article she complains of being mistreated as a senior business woman in Ellis’s ad agency, so it is not as if she is some teeny bopper that Cairns hooked up with in order to bolster his self-image. But in the eyes of the Herald editorial staff, she is just the female appendage of a dodgy ex-jock filing court papers against another ex-jock celebrity. Surely they can do better.
The really sad part of this particular episode is that it seems to be reflective of the casual sexism and misogyny that permeates NZ. For all the women who have achieved high positions in politics, academia, arts and law (not so much the corporate world), there appears to be this ingrained backward gender weirdness on the part of a significant number of the male population. Come to think of it, sexism and misogyny are the flip side of the coin known as bloke culture–the latter cannot exist without the former.
One interesting aspect of the story is that she was appointed by Ellis to work for his ad agency in the first place. How did that happen? Was she the best qualified person for the job or did the hire have something to do with the fact that she IS Mrs. Cairns? That would add another layer of provincial small mindedness to the equation. The article also mentions that Ellis is the director and sole shareholder of the ad agency, which has as its client Toyota.
Toyota? How did one of the largest vehicle manufacturers on earth happen to award a contract to what is by all appearances a boutique ad firm with no proven track record? Was it because Ellis is seen as representative of the NZ sales demographic that Toyota is targeting? And is that demographic the blokes? That is the only explanation that makes sense to me, but if that is the case then Toyota needs to think harder about that target demographic because Ellis is certainly not representative of it (after all, his blokey larrikin ute-driving days supposedly ended a while ago and he is now portrayed as a responsible businessman, although Mrs. Cairns complaint would suggest otherwise). And if it is the blokes that Toyota is sales targeting, has it not paused to think of the female role in bloke culture? Or does it assume that all women associated with blokes are content with their status as appendages or side kicks to the alpha individual and share his tastes and interests? If so, it has not done enough due diligence with its market research (as well as on Mr. Ellis).
In any event, the headline sucks even though the sexism, nepotism, cronyism, harassment and dubious business practice implicit in the story may well prove true.