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Libertarianism vs. Microlibertarianism


Libertarianism is a consistent and principled philosophy that is absolute in scope and universal in application.

We can begin with this classic description of libertarianism by libertarianism’s greatest theorist, Murray Rothbard (1926–1995):

Libertarianism is not and does not pretend to be a complete moral, or aesthetic theory; it is only a political theory, that is, the important subset of moral theory that deals with the proper role of violence in social life. Political theory deals with what is proper or improper for government to do, and government is distinguished from every other group in society as being the institution of organized violence. Libertarianism holds that the only proper role of violence is to defend person and property against violence, that any use of violence that goes beyond such just defense is itself aggressive, unjust, and criminal. Libertarianism, therefore, is a theory which states that everyone should be free of violent invasion, should be free to do as he sees fit except invade the person or property of another. What a person does with his or her life is vital and important, but is simply irrelevant to libertarianism.

Libertarianism is therefore not about one’s lifestyle, tastes, sexual proclivities, religion (or lack of religion), school of aesthetics, cultural norms, tolerances, morals, vices, or personal preferences. And it certainly cannot be reduced to the simplistic “economically conservative and socially liberal.”

The Nonaggression Principle

The guiding principle undergirding the libertarian philosophy is what is known as the nonaggression principle. As explained by Rothbard:

The fundamental axiom of libertarian theory is that no one may threaten or commit violence (“aggress”) against another man’s person or property. Violence may be employed only against the man who commits such violence; that is, only defensively against the aggressive violence of another. In short, no violence may be employed against a non-aggressor. Here is the fundamental rule from which can be deduced the entire corpus of libertarian theory.

The nonaggression principle is designed to prohibit one man from infringing upon the liberty of another. Aggression is the initiation of nonconsensual violence, the threat of nonconsensual violence, or fraud. The initiation of aggression against the person or property of others is always wrong. Force is justified only in defense or retaliation, but must be proportional, and is neither essential nor required.

Most Americans would no doubt subscribe to the nonaggression principle on a personal and individual level. Homeowners should be allowed to forcibly repel burglars and trespassers. Store owners should be permitted to stop armed robbers with deadly force. Assault and battery should be resisted by whatever reasonable means necessary. Convicted murderers, kidnappers, and rapists should forfeit their liberty and be locked up. Shoplifting, arson, mugging, burglary, theft, and writing bad checks are crimes against property, but are crimes nevertheless. But on the other hand, violence committed by one individual against another in a wrestling, boxing, or MMA event, or during voluntary sex acts containing bondage, sadism, or masochism, because the violence is consensual, does not violate the nonaggression principle.

The problem is when the nonaggression principle is applied to the state. Many Americans who hold to the nonaggression principle on a personal and individual level have no problem supporting government aggression against those who are not aggressing against the person or property of others, or are engaging in certain peaceful activities, in order to effect changes in behavior, compel virtue, or achieve some desired end. But as Rothbard explains: “Libertarians simply apply a universal human ethic to government in the same way as almost everyone would apply such an ethic to every other person or institution in society. In particular, as I have noted earlier, libertarianism as a political philosophy dealing with the proper role of violence takes the universal ethic that most of us hold toward violence and applies it fearlessly to government.”

Libertarians “make no exceptions to the golden rule and provide no moral loophole, no double standard, for government.” For as former Foundation for Economic Education president Richard Ebeling has noted, “There has been no greater threat to life, liberty, and property throughout the ages than government. Even the most violent and brutal private individuals have been able to inflict only a mere fraction of the harm and destruction that have been caused by the use of power by political authorities.” The nonconsensual initiation of aggression against the person or property of others is always wrong, even when done by government.

Libertarianism

Because of the nature of government, libertarians believe that the actions of government should be strictly limited to the protection of life, liberty, and property. As libertarian theorist Doug Casey elaborates, “Since government is institutionalized coercion — a very dangerous thing — it should do nothing but protect people in its bailiwick from physical coercion. What does that imply? It implies a police force to protect you from coercion within its boundaries, an army to protect you from coercion from outsiders, and a court system to allow you to adjudicate disputes without resorting to coercion.” This means that all government actions — at any level of government — beyond reasonable defense, judicial, and policing activities are illegitimate. The “sum of good government,” said Thomas Jefferson in his first inaugural address, is “a wise and frugal Government, which shall restrain men from injuring one another, shall leave them otherwise free to regulate their own pursuits of industry and improvement, and shall not take from the mouth of labor the bread it has earned.”

All of this means that the government should not monitor our activities, transfer our wealth, force us to be charitable, or punish us for doing things that are not aggression, force, coercion, threat, or violence. Virtuous action should never be compelled; it should be left up to the free choice of the individual. Charity, relief, and philanthropy should be entirely voluntary activities. Markets should be completely free of government regulation, licensing, restriction, and interference. Libertarians believe that individual consumers, consumer protection groups, and the free market can regulate business better than government agencies and bureaucrats. All services can and should be provided by competing firms on the free market. Laissez faire should be the rule and not the exception. The government should not interfere with exchanges between willing buyers and willing sellers. No industry or sector of the economy — or individual business — should ever receive government subsidies, loans, or bailouts. Property rights are supreme: He who owns the property or the business makes the rules for entry, commerce, interaction, tenancy, duration, or tenure.

Microlibertarianism

The term microlibertarianism was recently coined by Ryan McMaken, executive editor at the Ludwig von Mises Institute, to describe “libertarians who will act on principle on the small, easy topics, but will then abandon all principle on the big stuff.” Microlibertarians believe that “limits on state power work for the small stuff, but not for the big stuff.” Consequently, “the powers and prerogatives most central to state power — and which offer the greatest threats to the lives and freedoms of ordinary people — get a free pass.”

Microlibertarians rightly point out the evils of marijuana prohibition, how rent control leads to shortages in housing, how minimum-wage laws increase unemployment, the advantages of price gouging during a national disaster, the absurdity of laws against prostitution and other victimless crimes, the heroism of ticket scalpers, how occupational licensing reduces the supply of labor and increases its cost, and the benefits of privatizing government services like garbage collection. Although these issues are not unimportant, they “are generally rather peripheral to state power,” says McMaken. “To remove state action from these areas does little to endanger the state or its core powers.”

Microlibertarians defer to the government when it comes to “national emergencies” or “the national interest” or to “existential threats” to “national security” or “public health.” Thus, after 9/11, there could be found libertarians who vociferously defended individual liberty, small government, and the free market while they just as enthusiastically embraced war, militarism, and the surveillance state. McMaken reminds us of the common refrain heard during Ron Paul’s presidential campaigns of 2008 and 2012: “I agree with Ron Paul except on foreign policy,” which in reality meant: “I think the state is bad on some things, but I’m not really interested in confronting the major issues at the core of state power.”

Microlibertarians have showed their true colors again since the beginning of the Russia-Ukraine war, with some of them supporting U.S. foreign aid to Ukraine. During the COVID-19 “pandemic,” some libertarians supported lockdowns, mask and vaccine mandates, and other draconian government responses in the name of “public health” even though the result should have been a foregone conclusion: The permanent increase and expansion of government power and interventions into the economy and society.

The Issues

It is not just on national security and public-health issues where microlibertarians go astray. What follows are some other big issues where microlibertarianism is at odds with libertarianism.

Education. The libertarian asserts that education should be completely separated from the state in the same manner in which religion should be completely separated from the state. Just as there should be no government churches, there should be no government schools — elementary, secondary, trade, college, or university — or funding of schools or students. There is nothing special about providing educational services that necessitates that the government be involved in it.

The microlibertarian is adamant that religion should be separated from the state but maintains that government funding of education via vouchers is legitimate because it gives parents “school choice.” But giving one group of Americans the choice of where to spend other Americans’ money to educate their children is immoral and unjust. Libertarian voucher proponents long ago quit saying that educational vouchers were an intermediate step toward a free market in education. Microlibertarians believe that some Americans should pay for the education of other Americans and their children, even though if government vouchers were issued for things besides education, microlibertarians would rightly denounce them as an income-transfer program.

Social Security. The libertarian asserts that the Social Security program is maintained by government coercion via funding by a 12.4 percent payroll tax (split evenly between employers and employees) on the first $168,600 of one’s income. “Contributions” to Social Security are anything but voluntary, and businesses that fail to withhold payroll taxes are subject to prosecution and heavy penalties. Social Security takes money from the young and transfers it to the old. Libertarians view it as immoral for the government to force people to have a retirement plan, force people to have a disability plan, or force people to have a safety net. They also believe that care and compassion of the elderly, widows, orphans, and the disabled comes from the willing hearts of individuals rather than from government coercion. In short, Social Security is an intergenerational income-transfer scheme and wealth-redistribution program that should be abolished.

The microlibertarian maintains that Social Security can and should be reformed by updating the eligibility age, gradually raising the retirement age, reducing annual cost-of-living increases, means-testing of benefits, raising the wage base, shifting to a flat benefit, allowing Americans to invest some of their Social Security taxes in the stock market, and/or privatizing the program. (It should be pointed out that Social Security privatization plans merely privatize coercion since the government still forces people to save for retirement.) Microlibertarians believe that Social Security should be fixed and saved for future generations because it is an entrenched federal program that cannot be eliminated.

Tax reform. The libertarian asserts that taxation is theft. The libertarian view of taxes is not that taxes should be constitutional, fair, uniform, flat, apportioned equally, or even low. And the libertarian view of the tax code is not that it should be short, simple, or efficient. The libertarian view of taxes and the tax code is simply that they should not exist because acquiring someone’s property by force is wrong, whether done by individuals or by governments. All Americans should be entitled to keep the fruits of their labor and spend their money as they see fit. They should be free to accumulate as much wealth as they can as long as they do it peaceably and without committing fraud.

The microlibertarian maintains that the tax code can and should be reformed, that taxes should be made fairer and flatter, and that the tax code should be made shorter and simpler. They are intensely devoted — in the name of efficiency and simplicity — to the elimination of tax deductions, tax credits, and loopholes, that is, things that allow Americans to keep more of their money in their pockets and out of the hands of Uncle Sam. Although microlibertarians may call for lower taxes, they still believe that the government is entitled to a portion of every American’s income.

Entitlement reform. The libertarian asserts that no American is entitled to receive food, money, housing, or medical care from the government or from a private entity that is receiving government funds. The government has no resources of its own. Every dime that the government gives a welfare recipient, it must first take from a taxpayer. It is immoral to take resources from those who work and give it to those who don’t — even if the government does the taking. Libertarians therefore believe that all welfare programs should be abolished — from food stamps to job training to unemployment compensation — not reformed. All charity should be private and voluntary.

The microlibertarian believes that welfare should be reformed to eliminate fraud and make government provision of welfare more efficient. When they do call for the elimination of a welfare program, it is usually because they are advocating federal block grants to the states so that the states can operate the program while the federal government picks up most of the cost. Even worse, in the name of combating “income equality,” some microlibertarians have even called for a universal basic income to be given to all Americans who make under a certain amount, courtesy of U.S. taxpayers.

The drug war. Even some libertarians are hesitant about the full legalization of drugs that are stronger than marijuana — like heroin, cocaine, and fentanyl. The libertarian position on the drug war is straightforward: There should be no laws at any level of government for any reason regarding the buying, selling, growing, processing, transporting, manufacturing, advertising, using, possessing, or “trafficking” of any drug. All drug laws should be repealed, all government agencies devoted to fighting the war on drugs should be abolished, and the war on drugs should be ended completely and immediately. There should be a free market in drugs without any government interference in the form of regulation, oversight, restrictions, taxing, rules, or licensing.

The microlibertarian is certainly in favor of decriminalizing or legalizing marijuana on the state level for both medical and recreational use and is in opposition to federal laws that regulate or prohibit marijuana possession or use. However, how many of them would publicly call for the legalization of cocaine, LSD, heroin, crystal meth, and the dreaded fentanyl just like they would argue for the legalization of marijuana? It doesn’t take much courage nowadays to say that marijuana should be legal. Many liberals and some conservatives would even say so.

Conclusion

Pure, unvarnished, plumb-line libertarianism is the antidote to government aggressions against person or property, even when it comes to the “big stuff” of national security, public health, and entrenched federal programs. The libertarian goal is a free society where the nonaggression principle is the foundational principle and individual liberty, laissez-faire, and property rights reign supreme. The re-form-oriented mindset of micro-libertarians will never get us there.

This article was originally published in the August 2024 issue of Future of Freedom.

 


Originally Posted at https://mises.org/


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Key Battle On Election-Betting Market Heads To Appeals Court

Key Battle On Election-Betting Market Heads To Appeals Court

Key Battle On Election-Betting Market Heads To Appeals Court

Authored by John Haughey via The Epoch Times,

A legal battle over the future of a website’s election prediction market is set to continue on Sept. 19, when an appeals court hears the case of Kalshi v. CFTC, a decision that could reshape how Americans engage in political discourse.

The three-judge U.S. Court of Appeals for the District of Columbia Circuit will be considering whether individuals should be permitted to purchase contracts to participate in predictive markets that trade on the outcome of elections. If so, should these markets be regulated like other financial exchanges and commodity markets or as a form of gambling?

New York-based KalshiEx LLC argues that the elections market section of its website is a derivatives trading platform where participants buy and sell contracts based on projected outcomes of events, such as elections, and should be regulated no differently than grain futures that investors purchase as hedges against price fluctuations.

These markets provide a “public benefit” by gauging public sentiment in real-time, Kalshi maintains, a valuable guide for policymakers, politicians, and pundits in charting the public pulse.

The Commodity Futures Trading Commission (CFTC), which regulates the U.S. derivatives markets, argues that Kalshi’s platform blurs the line between commodity trading and gambling, and should not be viewed the same as futures contracts.

The commission maintains that Kalshi’s market puts it in a position to be a de facto elections regulator, which it is not designed to be. Such contracts provide no “public interest” and, in fact, pose a risk to electoral integrity and could potentially incentivize manipulation and fraud, the CFTC argues.

Those conflicting contentions are the core of what the appellate panel will deliberate on before it decides to lift or sustain its stay on U.S. District Judge Jia Cobb’s Sept. 6 ruling in favor of the platform. Judge Cobbs found that the defendant, CFTC, exceeded its statutory authority as a Wall Street regulator when it issued a September 2023 order stopping Kalshi from going online with its market because it is a “prohibited gambling activity.”

Judge Cobbs on Sept. 12 also denied CFTC’s motion for a stay while it mounts an appeal.

After the initial stay request was rejected, Kalshi wasted little time getting its market online. Attorneys for the CFTC were also busy, and within hours secured a stay from the appeals court, setting the stage for the 2 p.m. Sept. 19 hearing.

In the brief time before trading was paused “pending court process” late Sept. 12, more than 65,000 contracts had been sold on the questions, “Which party will control the House?” and “Which party will control the Senate?

The appellate panel will essentially be engaged in a technical legal debate over the definition of “gaming” and “gambling,” and how they would apply, in this case, to any potential regulation.

In its Sept. 13 filing calling for the stay to be lifted, Kalshi rejected CFTC’s definition that trading on election prediction markets is “gaming.”

“An election is not a game. It is not staged for entertainment or for sport. And, unlike the outcome of a game, the outcome of an election carries vast extrinsic and economic consequences,” it maintains.

The CFTC said in its Sept. 14 filing that because “Kalshi’s contracts involve staking something of value on the outcome of elections, they fall within the ordinary definition of ‘gaming.’”

‘Horse Has Left the Barn’

Regardless of how the panel rules, “The horse has left the barn,” said data consultant Mick Bransfield, of Pittsburgh, Pennsylvania, who trades on Kalshi’s website and purchased a “Senate control” contract.

There are ample opportunities to place election wagers on offshore websites such as New Zealand-based PredictIt, which imposes strict spending limits; on websites such as Polymarket, a New York-based platform that cannot legally accept wagers from within the United States; or the American Civics Exchange, where businesses and high net worth individuals can purchase “binary derivative contracts” through proxies tied to policy and electoral outcomes as hedges against “unpredictable electoral, legislative, and regulatory events.”

Predictit.org/Screenshot via The Epoch Times

“Elections predictive markets have been around since 1988 in the United States,” Bransfield told The Epoch Times, adding that the issue is “more nuanced than people realize.”

That nuance, said Carl Allen, author of The Polls Weren’t Wrong, is that Kalshi’s platform would be the first federally regulated U.S.-based predictive elections market open to all individuals without spending limits.

“To me, the question is not should it be regulated, the question is how? I think that is where we are,” Allen, who writes about predictive markets on substack, told The Epoch Times.

“It’s challenging to get your arms around this because there are so many organizations involved with it,” he said. “We’re reaching a really interesting point with sports betting going from totally disallowed, except for in Vegas and a few brick-and-mortar [stores], to being everywhere; crypto currency drastically growing; ETFs [Exchange-Traded Funds] getting big;” and Kashi attempting to open a predictive market on election outcomes.

Prediction market trader and Kalshi community manager Jonathan Zubkoff, who also writes about predictive markets and wagering, said the CFTC’s claim that elections markets are betting websites is mistaken.

“It’s not the same as sports betting” where there is “a line posted and billions of dollars are traded against it across different time zones,” prompting the odds to fluctuate, he told The Epoch Times.

“If you are looking at a line [to bet] on a Friday night for a Sunday game, there’s no hedge whatsoever.”

In elections markets, “there actually is a hedge” that gives people an opportunity to put money where “their bias is,” Zubkoff said.

Coalition For Political Forecasting Executive Director Pratik Chougule said another difference between sports betting and other types of gambling and predictive elections markets is that “unlike many other forms of speculation, the wagering here has a real public interest benefit. These markets inform in a way that is very beneficial.”

In October 2023, Chougule told The Epoch Times that elections markets reflect predictive science, citing numerous studies documenting that political betting websites are better indicators of public sentiment than any other measure except the election results themselves, including a study by Professor David Rothschild of the University of Pennsylvania’s Wharton School of Business.

“Polling is very unreliable,” he said. “And so we basically believe that, in order to promote good forecasting for the public interest, we believe that political betting is one solution to that because, at the end of the day when you have people wagering their own money on the line, that creates incentives that are very hard to replicate through other ways.”

Chougule, who hosts the podcast Star Spangled Gamblers, believes that, while not always accurate, election predictive markets are the best gauge of public sentiment in real-time.

“When they make a prediction, they are putting their money on the line,” he said. “It’s a pretty clear barometer of how an election is going.”

‘Gray Area’ Needs Rules

Chougule said he was “pessimistic” that Kalshi’s elections market would be online by Nov. 5.

“I think when you look at the landscape at the federal and state level, at Congress, at federal agencies, [there is] fear and skepticism and concern about what widespread elections betting could mean for our democratic institutions,” he said. “I don’t agree but it’s a fact.”

Bransfield said he was surprised by Cobb’s ruling against the regulators. “It did not seem the district court would side with Kalshi after the oral arguments in May,” he said. “The judge referred to elections contracts as ‘icky.’ That gave me the assumption that it would be unpalatable to her.”

But there is reason to be deliberative, Bransfield said.

“We should always be concerned about the integrity of our elections but these elections contracts have been around for so long,” he said, noting that more than $1 billion in 2024 U.S. elections contracts have already been purchased in the United Kingdom alone. “All those concerns already exist and have for a long time.”

Certainly, Allen said, “there are a lot of downstream effects that we are going to see from this,” but some fears are unfounded.

Unlike a sports contest where one player can affect the outcome, it would take a widespread concerted effort to “fix” an election, he said. Nevertheless, there is “potential for unscrupulous actors to release a hot tip” that could affect predictive markets.

Allen cited speculation about when former South Carolina Gov. Nikki Haley would end her presidential campaign during the Republican primaries, whether Robert F. Kennedy would pull the plug on his independent presidential campaign, and who both parties would pick as their vice presidential candidates as examples.

“A handful of people knew about [vice president picks] before it was public. It would be financially beneficial for someone to throw a couple [of] thousand dollars into that market,” he said.

Prime Minister Rishi Sunak (C) and his wife Akshata Murty (in yellow) at the launch of the Conservative Party general election manifesto at Silverstone race track in Northamptonshire, England, on June 11, 2024. James Manning/PA

The CFTC, in its challenge, noted that bets had been placed on the July 4 British general election date before Prime Minister Rishi Sunak officially announced it in May.

“It is very hard to see this gray area without some rules,” Allen said.

“Claiming that betting in elections is going to lead to issues with democracy and election integrity is one of the most ridiculous things I ever heard,” Zubkoff said, calling them “elections integrity dog whistles.”

Critics “are sort of lashing out,” he continued.

“It is a total misunderstanding. As someone who has traded in these markets, I haven’t seen anything that remotely constitutes a threat” to election integrity.

Zubkoff said Kalshi “very clearly has the better arguments” and cited the Supreme Court’s Chevron repeal as momentum that “bodes well for the future” of predictive elections markets.

He believes the appellate court will deny CFTC’s motion to extend the stay, and placed the odds of Kalshi getting a “yes” to go online before November’s elections at 60 percent.

Zubkoff noted that just like predictive elections markets, those odds could change in real-time during the hearing. “I could give you much better odds while listening to the hearing just based on the questions the judges ask,” he said.

Allen said the odds are “better than 60-40” that Kalshi will win its case, before qualifying that prediction with the ultimate hedge: “I don’t know how much money I would put on that.”

Tyler Durden
Thu, 09/19/2024 – 09:30

Lebanon PM urges UN to take firm stance over Israel's 'technological war'

Lebanon PM urges UN to take firm stance over Israel’s ‘technological war’

Lebanon’s Prime Minister called Thursday for the United Nations to oppose Israel’s “technological war” on his country ahead of a Security Council meeting on exploding devices used by Hezbollah that killed 32 people. Najib Mikati said in a statement the UN Security Council meeting on Friday should “take a firm stance to stop the Israeli […]

The post Lebanon PM urges UN to take firm stance over Israel’s ‘technological war’ appeared first on Insider Paper.

Russia's Shadow Fleet Is A Ticking Geopolitical Timebomb

Russia’s Shadow Fleet Is A Ticking Geopolitical Timebomb

Russia’s Shadow Fleet Is A Ticking Geopolitical Timebomb

Authored by Antonio Garcia via OilPrice.com,

  • Despite Western sanctions and oil price caps, Russia continues to use an aging “shadow fleet” of tankers to circumvent restrictions, allowing for stable oil exports.

  • Russian oil is now primarily heading to ‘friendly markets’ like China, India, and Turkey.

In response to Russia’s full-scale invasion of Ukraine in February 2022, the European Union and several other Western countries imposed extensive sanctions on Russia, attempting to stop the trade of Russian oil. In December 2022, the G7 countries decided on an oil price cap. However, Russia has found ways to circumvent these sanctions, primarily through the creation of a “shadow fleet” of oil tankers.

Despite robust US Treasury sanctions targeting the shadow fleet, Russia continues to expand it by incorporating new tankers, allowing for stable exports and further evasion of oil price caps. Only 36% of Russian oil exports were shipped by IG-insured tankers. For other shipments, Russia utilized its shadow fleet, which was responsible for exports of ~2.8 mb/d of crude and 1.1 mb/d of oil products in March 2024.

Kpler data shows that in April 2024, 83% of crude oil and 46% of petroleum products were shipped on shadow tankers. The shrinking role of the mainstream fleet fundamentally undermines the leverage of the price cap.

The shadow fleet is a collection of aging and often poorly maintained vessels with unclear ownership structures and lack of insurance. The number of old, outdated ships departing from Russia has increased dramatically. The EU has recently introduced legislation aimed at cracking down on the sale of mainstream tankers into the Russian shadow trade, but the problem persists. Russia managed to expand its shadow tanker fleet, adding 35 new tankers to replace 41 tankers added to OFAC’s SDN list since December 2023. These tankers, all over 15 years old, are managed outside the EU/G7. With 85% of the tankers aged over 15 years, the risk of oil spills at sea is heightened.

The shadow fleet poses a significant and rising threat to the environment. The aging and underinsured vessels increase the risk of oil spills, a potential catastrophe for which Russia would likely refuse to pay. The vessels can cause collisions, leak oil, malfunction, or even sink, posing a threat to other ships, water, and marine life. With estimates suggesting over 1,400 ships have defected to the dark side serving Russia, the potential for environmental damage is substantial. For instance, since the beginning of 2022, 230 shadow fleet tankers have transported Russian crude oil through the Danish straits on 741 occasions. Also, a shadow fleet tanker on its way to load crude in Russia collided with another ship in the strait between Denmark and Sweden. Last year, a fully loaded oil tanker lost propulsion and drifted off the Danish island of Langeland for six hours. Recovery after any potential oil spill could take decades.

Added to the environmental issue, seaborne Russian oil is almost entirely heading to the Asian markets, with India, China, and Turkey being the biggest buyers. In 2023, 86% of oil exports went to friendly countries compared to 40% in 2021, and 84% of petroleum product exports compared to 30% in 2021. This shift in export destinations highlights the changing geopolitical landscape of the oil market due to the sanctions and the rise of the shadow fleet.

Several measures have been proposed to address the challenges posed by the shadow fleet. These include stricter sanctions on individual vessels, increased scrutiny of financial institutions involved in Russian oil deals, and fines that would limit sales or decommission tankers. The G7 countries are taking measures to tighten control over the price cap and further pressure Russia. The US has introduced a series of sanctions against ships and shipowners suspected of violating the price cap. However, concerns remain that these measures could lead to higher energy prices and escalate tensions with Russia. The Danish foreign ministry has stated that “The Russian shadow fleet is an international problem that requires international solutions.”

The shadow fleet has allowed Russia to circumvent Western sanctions and continue profiting from its oil exports, but it has come at a significant cost. The environmental risks posed by these aging and poorly maintained vessels are alarming, and the shift in oil trade patterns is reshaping the geopolitical landscape. Addressing this complex issue will require concerted international efforts and a delicate balance between maintaining sanctions and ensuring stable energy markets. The situation is unsustainable, and the need for action is becoming increasingly urgent.

Tyler Durden
Thu, 09/19/2024 – 03:30

North Korea claims it tested ballistic missile with 'super-large' warhead

North Korea claims it tested ballistic missile with ‘super-large’ warhead

North Korea claimed Thursday that its latest weapons test had been of a tactical ballistic missile capable of carrying a “super-large” warhead, and a strategic cruise missile, state media reported. Leader Kim Jong Un “guided the test-fires”, the official Korean Central News Agency said, of the “new-type tactical ballistic missile Hwasongpho-11-Da-4.5 and an improved strategic […]

The post North Korea claims it tested ballistic missile with ‘super-large’ warhead appeared first on Insider Paper.