Personnel is Policy for Kamala Harris
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Personnel is Policy for Kamala Harris


As the saying goes, “Personnel is Policy.” President Trump learned this the hard way, depending heavily on the very Washington, D.C. swamp creatures whose swamp he sought to drain. George W. Bush, having scant foreign policy experience himself, leaned heavily on a stable of neoconservative advisors, who had long pressed for another war with Iraq. What might a Kamala Harris victory in November portend for US foreign policy? Harris’s statements and advisors tell the story.

In 2019, when Kamala Harris was running for President, her campaign website’s foreign policy featured bright spots. Harris stated that, “[a]s president, she’ll work with our allies and local leaders to end the wars in Afghanistan and Iraq and protracted military engagements in places like Syria.” However, Harris said “she’ll do so responsibly,” which is Washington-speak for delay and cover for a President’s failure to end a war.

Harris clearly postured as a foreign policy progressive, but most policies were establishment to the core. She expressed concerns about the “threat” of “Russian aggression,” wanted to reinvigorate our participation in institutions and alliances like NATO, and stated she would “confront white supremacy by re-establishing the Domestic Terror Intelligence Unit and reversing President Trump’s cuts to programs designed to combat white nationalism.” Ultimately, her foreign policy was bland and undeveloped, as it remains today. Notably, her campaign page was silent on Taiwan.

With few real convictions, her foreign policy will likely repeat the Obama and Biden administrations: she will posture as progressive—occasionally acting as though wielding American power can be detrimental—but largely carry out a left-wing variety of establishment policy, easily swayed by the hawkish foreign policy establishment on most issues. Harris’s Senate Intelligence Committee experience—for which she received “high marks”—bodes ill; here, the intelligence community would have repeatedly exposed Harris to constant fear-mongering.

Her foreign policy advisors’ views also foretell a liberal establishment future. Her national security advisor in the Senate, Halie Soifer, was Samantha’s Power’s policy advisor in the Obama administration. Power was Obama’s US Ambassador to the U.N. and is Administrator of the US Agency for International Development (USAID) under Biden. Power’s most significant book, A Problem from Hell, argued that the US has not done enough to prevent genocide. Power represents a “progressive” foreign policy vision that shows some reticence toward American intervention, but is still Wilsonian at heart, dedicated to globe-spanning American power and “solving big problems.” In other words, progressive establishment foreign policy retains a large degree of good-old American hubris.

That hubris is evident in Harris’s 2019 claim that she would prevent Iran from obtaining a nuclear weapon, but “without . . . risking an unnecessary war.” Unsurprisingly, details on how Harris would do this were not forthcoming. But this confused witch’s brew of bellicosity and restraint is endemic to progressive foreign policy visions, whether branded as progressive realism, progressive advocacy for American power, a post-liberal-international-order “open world” vision, or some other variant of internally-conflicted establishment liberalism.

Militarily, this variety of progressivism purports to comprehend the lessons of disastrous interventions like Iraq, Afghanistan, and Syria, yet lacks sufficient comprehension or conviction to apply this lesson to future conflicts. It bridges the realist recognition that foreign adventurism is politically toxic, with the progressive hawk’s craving to do-good around the world today. Progressives criticize past administrations while failing to recognize their own hubris. They think that they can repeat the interventionist errors of the past without courting the same disastrous results. Progressive foreign policy is a different brand of the same establishment product, old wine in new bottles.

On the more hawkish end of the spectrum, Harris’s Deputy National Security Advisor, Rebecca Lissner, wrote in 2020 that “an isolationist retrenchment” is bad foreign policy, and rejected the realist notion that nations should have “spheres of dominance.” As such, the US must “oppos[e] the efforts of hostile nations to dominate their regions, subvert the political processes of independent states, and close off vital waterways, airspaces, or information spaces.” Lissner urges merely “reimagining” the “liberal international order,” which seems to merely contemplate marginal tweaks to the existing system purportedly informed by progressive values.

Harris’s current “foreign policy guru,” Phillip H. Gordon, worked in various roles in the Clinton, Obama, and Biden administrations. On the one hand, Gordon is characterized as an Iran dove, with Ted Cruz stating that Gordon advising Harris “would be unspeakably catastrophic” for a Harris administration’s foreign policy. (Gordon championed the Iran nuclear deal, as well as criticized the Trump administration’s assassination of Iran’s Major General Qasem Soleimani as unnecessarily antagonistic). Gordon also questions sanctions, which often harm the people living under sanctions without successfully changing the sanctioned nation’s behavior.

More generally, the media has framed Gordon as “understanding . . . the limits of American power and the need for a much more humble foreign policy than most of those in Biden’s inner circle.” Gordon’s book, Losing the Long Game, highlights regime-change failures, including the failures of the Obama administration’s wars in Iraq, Afghanistan, and Libya.

Gordon perhaps goes farther than the prototypical progressive establishment type. For example, according to The Free Press, Gordon argues that not only did we not need to intervene in Syria—unlike many other progressive interventionists and realists—but “that the US would have been better off never calling for the Arab despot’s [Assad’s] removal in the first place.”

But Gordon’s restraint has limits. Alarmingly, those limits include Russia and China. In 2018, in a piece for the Council on Foreign Relations entitled “Containing Russia,” coauthored with Robert D. Blackwill, Gordon argued that we were already in a second Cold War with Russia, which warranted a Cold War-like containment policy. As he put it:

…just as it did during the Cold War, Washington should continue to interact with Moscow, and it should not refrain from practical cooperation or arms-control agreements with Russia whenever such cooperation is in US interests. But Washington also cannot stand by if a foreign adversary not only adopts an agenda of countering US influence throughout the world but also continues to directly strike at the heart of the US political system and society.

According to Gordon and Blackwill, both Presidents Obama and Trump failed to “adequately elevate[] Russia’s intervention in the United States to the national priority that it is, or responded to it in a way sufficient to deter Russia.” “Russia,” they stated, “will need to conclude that it is paying a major price in matters important to it,” which tit-for-tat will fail to do. Additionally, they disparaged President Trump’s “suggest[ion] it would be ‘nice if we could just get along.’” However, they urge, this is a fool’s errand because “[n]o matter how adroit US diplomacy, it is now clear no benign deal is to be had with Putin.”

Among the policy prescriptions Gordon and Blackwill recommended include “additional sanctions.” Apparently, sanctions are good and effective only against true enemies of the U.S., unlike Iran. They also recommended “a full-scale reinvigoration of US. European security Policy,” i.e., maintaining US troop levels, increasing funding, and arming Eastern Europe. Even in 2018, they advocated “[p]rovid[ing] additional defensive support to Ukraine,” though admitting that “Ukraine should not be encouraged to seek a military victory over Russia, which it cannot achieve.” Finally, they recommended withdrawing from the Intermediate-Range Nuclear Forces (INF) Treaty if Russia fails to “move back into compliance” with the treaty. The Trump Administration would heed this advice, withdrawing from the INF Treaty in 2019.

Since Russia invaded Ukraine, this played out as you might have expected. Gordon has repeatedly touted Harris’s support for aid to Ukraine and condemnation against Russian aggression. Put simply, we can expect more of the same from a future Harris administration in its policy toward Ukraine and Russia.

The same goes for China. While Harris has been less than forthcoming, her statements align well with China hawkishness, though less so on trade. Harris was concerned about Chinese aggression in the South China Sea and emphasized the importance of securing Taiwan, while criticizing President Trump’s trade war with China. (Gordon, too, has spoken favorably “of ending a trade war that has done far more harm than good to American farmers, consumers and taxpayers”). While Harris’s comparative silence on China may provide hope to some, the reality is that hawkishness on Russia equates to hawkishness on China. Every Russia hawk thinks “support for Ukraine helps defend Taiwan.” Harris will be no exception.

What is the end result? A Harris presidency could be modestly more restrained in certain areas, such as the Middle East, compared to President Biden. However, Harris would likely continue the disastrous establishment policies toward Russia and China, which unnecessarily court nuclear war. Real restraint requires recognizing that war and antagonism only bring death and destruction. If Kamala Harris becomes president real restraint, unfortunately, is not in the cards.

 


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.