Balaji Profile picture
Nov 4, 2021 13 tweets 4 min read Read on X
The thesis of the Sovereign Individual holds up well. But there are three major countertrends.

The Individual Sovereign, and Xi Jinping in particular.

The Sovereign Collective, the leverage of nomadic groups.

The Autonomous Robot, as drones also change the logic of violence.
The Individual Sovereign

Technology matters - but so do founders. A sufficiently motivated founder can change the direction of technology. And Xi Jinping has refounded the Chinese state as a formidable, centralized, militaristic surveillance machine.
reuters.com/investigates/s…
The Individual Sovereign is a problem for the Sovereign Individual. A single man at the helm of a total surveillance state is just a different thing than the US establishment. The latter may well *want* to crush free speech & free markets, but lacks the state capacity to do so.
Yes, the US establishment has NSA surveillance, media corps, the dollar, all these things it has inherited.

But fortunately it lacks the leadership to put these together into a systematically effective plan for oppression. So it’s losing control over matters foreign & domestic.
It’s not yet obvious today — you need to extrapolate a few trends — but one scenario is American anarchy, Chinese control, and an International Intermediate.

In the Chinese sphere of influence, the Sovereign Individual would be harshly tamped down by the Individual Sovereign.
This brings us to the 2nd countervailing force: the Sovereign Collective.

We should strive for crypto-civilization rather than crypto-anarchy. Dysfunctional legacy states are getting unbundled, but we need to build better ones.

New states, not no states.
shows.banklesshq.com/p/-crypto-civi…
The Sovereign Collective is a more natural fit for human nature than the Sovereign Individual.

Put another way: technology has enabled us to start new companies, new communities, and new currencies. Can it allow us to start new cities, even new countries?
foresight.org/salon/balaji-s… Image
The collective exit to Miami was organic and unplanned.

But can we productize it? Build something like Nomadlist or Teleport, but for groups to crowdfund a migration together? That’s the concept of crowdchoice, a core idea behind the Sovereign Collective.
1729.com/miami
The Autonomous Robot

An important part of the Sovereign Individual thesis is the idea that encryption increases the individual’s power to resist coercion. However, drones can also increase state power to coerce in the physical world — without the same need for human conscripts.
Drones and autonomous robots in general are like firearms and encryption — something with nonobvious consequences for the monopoly of violence that underpins the state. They aren’t that easy to build, which favors states. But they are easy to operate, which favors individuals.
This also relates to Thiel’s point on how AI centralizes & crypto decentralizes. A Chinese drone armada may be a centralizing force that opposes the decentralization of crypto. Conversely, drones may make it easier for Sovereign Collectives to ward off an Individual Sovereign.
Each of these trends — Sovereign Individual, Individual Sovereign, Sovereign Collective, Autonomous Robot — are like forces applied to the status quo.

Different outcomes are possible. Many may coexist at the same time in different places. But it’s not just one force.
PS: there is at least one other force that belongs up there, which is quantum computing’s impact on encryption. A lot depends on whether the decryption process is expensive, secret, and available for a while only to a centralized state like China. brookings.edu/techstream/the…

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More from @balajis

May 17
The state is going to pursue killer AI. It’s called drones.

So the entire idea of “AI safety” regulation is moot. For better or worse, the drone arms race has begun and you have to defend yourself.
The state may *also* try to regulate open source AI. But that isn’t because it’s a threat to you. It’s because they think of tech in general as a threat to them.

Take the EU. In the name of protecting privacy we got cookie banners. Now in the name of AI safety we get logic bans.
You want my extreme troll-but-true comment?

AI safety is actually crypto.

Because the only secure backends are onchain. Web2 systems get hacked all the time, but Ethereum doesn’t. So that’s where the drone private keys will be stored.

Hence, safety through cryptography.
Read 5 tweets
Apr 26
Taiwan, Hong Kong, and Singapore did well in the 20th century while the Chinese mainland was gripped by a mind virus.

Quite possible that Australia, New Zealand, and Singapore do well in the 21st century while the Western world is gripped by a mind virus. Image
Why Australia and New Zealand?

They’re arguably the best-run countries in the Anglo world. I compiled some graphs in the thread below. But you can see that they’re qualitatively less indebted than the G7.
Australia’s small size and proximity to China has resulted in a totally different economy than America.

They don’t have illusions of having the strongest military or reserve currency.

Instead they dig stuff out of the ground and sell it to China.

So, they have a real economy. Image
Read 5 tweets
Apr 8
REALITY PRECEDES PROSPERITY
I think we agree on one point and disagree on two points.

THE BUKELE ANTIBODIES
1) First, yes, force alone is not the recipe for an ailing country. Ultimately you need community. Latin America suffered from generations of drug dealing and money printing. So now they have developed antibodies in the form of crime prevention and Bitcoin adoption. And Bukele is the incarnation of those antibodies. But society basically has to be ready to turn around before a Bukele can appear. He can wield force against the 1.6% of criminals because he has much of the 98.4% of non-criminals on his side.

I saw this in India as well, after generations of socialism. And in Vietnam, after generations of communism. Those societies finally had the antibodies to fight off the mind viruses that had brought them low. Of course, many societies just succumb. Is Cambodia mounting a comeback anytime soon? Or North Korea, or Cuba? Not really.

This is also the problem in the US. Many in the US have yet to even acknowledge it's declining. Many Democrats are Stalinist Bidenists, whose monthly checks are dependent on mouthing the party line. And many Republicans have replaced G-o-d with G-o-v. They see the US military as a god replacement, in its stern father form, and can't bring themselves to admit the country ain't what it was. They're Soviet conservatives, patriotic to a fault, saluting the worst because they've captured the flag.

I don't think this is true for everyone — people like @realchrisrufo and @davereaboi know what time it is — but it's true for too many. If you still think, like Biden recently said, that his empire is still "the most powerful country in the history of the world" and that it just isn't trying or is like one election away from being fixed — you are wrong in a deep way.

The values that underpin the valuations have been broken. The current society is coasting on fumes. Fixing this is at least a generational rebuild. It's not something one vote will solve.

IT'S NOT RICH
2) We also disagree that the US is a rich country. It has a fake economy, built on debt, with exponentially increasing interest payments, that doesn't have much runway left, and doesn't have factories to fall back on when the money printing stops.

For example:

^ Why are interest payments suddenly spiking? Because the bill for QE is coming due. Either die by high inflation or high rates. Or both.

^ Why is the country issuing debt at emergency levels, without acknowledging it's an emergency? Because that's the only thing that can keep this fake economy afloat through the 2024 election.

^ Why is China the world's #1 trade partner on just about every physical good? Because the US only exports (a) printed money and (b) technology. Anyway, I could keep going, with literally dozens of graphs like this. But X only allows four per post.

IT'S NOT STABLE
3) On the topic of whether it's a country with a "turbulent history of...violence", the level of drug addiction, violent crime, homeless encampments, squatters, road blockages, and massive BLM/Hamas mobs swarming the streets has obviously spiked in recent years.

2020 didn't represent a one-off, it's a preview of what is to come, particularly in Blue America. Crime statistics are systematically faked — in San Francisco, you can actually see some dashboards where things like car ticketing have gone to zero — so we don't have an accurate picture.

Until you see undeniable things like stores closing and people moving out of blue states. And then blue politicians yell at those companies, and try to stop them from moving out. This is systematic: blues always disable the warning lights that tell you we're crashing into the ground, just like the mortgages labeled AAA in 2008, just as a mosquito anesthetizes you before drinking your blood, just as a snake evolves to employ camouflage before it strikes. Alongside lawfare, faking the stats is a core competency of both communist reds and woke blues.

TLDR: I think we just have very different mental models of the prosperity and stability of today's United States. Wokeness is hegemonic and the damage is deep. I wish it weren't so — but agreeing on reality precedes prosperity.

A few more citations follow 👇Image
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Here's how SF fakes its crime statistics. The law is not enforced so the crime is not reported.
This is a BLM/Hamas mob.
And this is a scene from World War Z.
Complete with the fast zombies.
That guy in the car did nothing wrong.
Other than being in the wrong place at the wrong time.
Namely, Blue America.
This doesn't happen in a stable country.
Read 4 tweets
Feb 17
I just got back from Prospera.
A startup city on the island of Roatán.
It’s crypto, it’s bio, it’s robo.
And it’s not San Francisco.
We’ve started new companies, new communities, and new currencies.

Now we’re starting new cities.
My body, my choice.

That’s what personal medical sovereignty means.

If you can legally go skydiving or bungee jumping, you should be able to take a calculated risk on new treatments.

And that’s what Prospera has legalized.
Read 4 tweets
Jan 21
We now understand the 2010s.

It’s when legacy media fought a ferocious but ultimately doomed rearguard campaign against the Internet.

That’s why they pushed censorship so hard and constantly thumped their chest about being “journalists.”

It was protectionism.
They were dying.
Image
Many journalists spent the better part of a decade attacking the Internet for a living.

You understand it better when you realize it was existential for them. They didn’t just lose money, they lost power.
Even legacy media now admits it. Trust in newspapers has collapsed. Image
Read 5 tweets
Nov 16, 2023
1) Ban China
2) Be China
3) Beat China

These are the options. I get the logic, but banning signals technological and cultural weakness. Yet so does capitulation of the Newsom variety. The best way is to build something *better* than China, as Elon and others in tech have done.
Image
Democrat concern about Russia is similar to Republican concern about China.

I get where it comes from. But the real answer is to build a more compelling product that can win on the global internet.

Otherwise you're giving up on soft power.
Why isn't China submissive anymore?

The unspoken truth: because they don't respect America anymore. For example, they feel they can build better cities than the US.

The best way to prove them wrong is to outbuild them.
Read 5 tweets

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