One interesting takeaway from the attempted mutiny/coup is that Prigozhin kicked it off with a 30 minute speech on Telegram that has largely been translated to Western audience through second-hand reports. Here are some direct snippets from it that are interesting...
“Between 2014-2020 Donbas was looted by those close to the president, FSB, and oligarchs. These are people who stole from the people of Donbas. There was supposed to be local police/army presence to defend the population in case on a Ukrainian attack."
"On February 24, nothing out of the ordinary was happening. The Ministry of Defense (MoD) is trying to lie to the administration and population that there was excessive aggression from Ukraine’s side and that they were trying to attack Russia with the entire NATO."
"February 24, 2022... the whole operation was kept a secret. The commanders who were supposed to lead had no idea what was going on. Victory maps with prettily drawn arrows were brought to Shoigu by those who have never held a weapon. And so, what happened happened."
"Now, why did the “special operation” begin? Pretty concepts like de-Nazification and de-militarization of Ukraine would have been possible if, in three days, there was a regime change."
"As far as I know, Zelensky was open to anything when he became president. All we had to do was get down from our high horse and go make a deal. The entire Western Ukraine is populated by genetically Russian people. What is happening now is that we are just killing Russians."
"A bunch of idiots thought that nobody would realize what they were up to with their military training exercises right before their stupidly planned operation, and they stupidly thought that no one would stop them when they marched on Kyiv."
"And no one would have stopped them if these degenerates wouldn’t have made long columns and didn’t send naked and barefoot soldiers to Kyiv and other regions."
"Already in late Feb, soldiers were suffering shameful and embarrassing defeats. They were not only losing their lives, but also their reputation. African leaders (where I was stationed at the time) were contacting me and asking how Russia could have fallen to such shame."
"Why was the war needed? It was needed to that a bunch of _____ [bad word]at the top could show their might and get some good PR."
Here he goes into a diatrabe against Minister Shoigu that I do not think adds any value so I truncate it.
"Second, the war was needed for the oligarchs. It was needed for the clan that today pretty much rules Russia. This oligarch clan receives everything it possibly can."
He then goes into some "insider baseball" on Ukrainian politics that I truncate.
"When we captured factories, why didn’t we start working in them? Instead, all the machinery gets disassembled and taken to Russia. We captured a liquor factory in TK oblast (in Donbas), and already it’s being decided when it should launch. But who will profit from it?"
"Definitely not the people of Donbas. All the revenues will be robbed and looted again. Our war with those who oppress Russians has turned into looting and stealing. Looting and stealing elevated to the levels of national ideology."
"On March 19 I arrived in Ukraine. I asked the local military leaders why we don’t report the number of injured and killed. I was told that this doesn’t interest anyone up the chain. There are certain goals that must be met. And the number of dead will be counted later."
"They still hope that they can win this war. But because there is no military leadership, the MoD lies to the President, and the President receives reports that to not match reality. Two notices are written – one on the ground and one at the president’s desk."
"That’s why we always head about 60 destroyed Leopards and 3000 destroyed troops. What is reported in the socials and news is the one case of us destroying 2 Leopards and a few other things. Noone has ever destroyed 60 Leopards. This is complete BS."
I have truncated the entire speech as there is some Russian-Ukrainian "insider baseball" stuff here that I don't think is that valuable.
Why spend any time on this when the coup failed and the man is exiled?
For one, Prigozhin has a stellar reputation as a "hard man" and a soldier. Nobody is going to successfully accuse him of being a liberal, Western, patsy. So the fact that he has unloaded such a littany of criticisms against Russian leadership is relevant.
Moments like this can change the narrative. Prigozhin is arguing that the war in Ukraine has nothing to do with Russia's national security, geopolitical ambitions, protecting Russian speakers/ethnics, or natural resources. It's all about domestic politics. I very much agree!
What's kind of ironic is that both Kremlin apologists and Ukrainian/Liberal/Western critics kind of agree that Russia has STRATEGIC reasons to invade Ukraine. I really disagree. I agree with Prigozhin. He is right. This was domestic PR.
The fact that somebody of his stature and reputation has openly made these claims is, I think, very relevant. Especially as many of his detractors are either professional soldiers who will stay quiet on politics (and will challange him on legality of action) or political hacks.
In other words, someone like Prigozhin can "open a safe space" for others to criticize the war in a similar manner. No longer are Kremlin critics merely liberals and Western stooges. They now include a merciless mercinary who has a stellar reputation as a Russian patriot.
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Some thoughts on the LA fires, given the curious situation that I find myself in... being in the midst of a macro calamity.
To be clear, I don't believe in "reports from the ground." they are often actually the least sober. Least useful. So... a cautious and modest 🧵.
First, we now have the first reports of the size of the "Palisades fire." See below.
It is effectively as large as West LA - population around 200,000 - itself. However, the prevailing winds have taken the fire to the southwest, as they normally do. As such, the fire has stopped along Rustic and Santa Monica Canyons that separate SM from Pacific Palisades.
Looking for some early January weekend reading? Highly recommend this @SteveMiran piece from two months ago on restructuring global trade architecture.
It is very good! I have 10 thoughts on the report.
1) What does the US do about Chinese "enemy shoring" around the world? Is the US prepared to raise tariffs to 60% against even geopolitical allies that Chinese companies use as transit exporters?
2) Currency offsets on tariffs. Yes, USD rose in 2018/2019. (I disagree this was because of tariffs, but that is neither here nor there). The bigger question is how would that aid US manufacturing? Unless the US imposes very high tariffs on all trade partners.
This is a 🧵on the state of America's relationship with globalization in light of Trump's potential pivot towards 1980s-style resolution to the now six year trade war with China, as articulated in the @Bloomberg interview on October 15.
If President Trump had one superpower, it would be to "sniff out" the median voter preferences on the most important issue of the moment. In 2016, he outmaneuvered Secretary Clinton on trade, forcing her to abandon the TPP deal in her campaign rhetoric -- a deal she obviously negotiated!
Trump leaned into the arguments made by the long-time critics of US trade policy, particularly that of Robert Lighthizer. Lighthizer's epic 2010 testimony to the US-China Economic and Security Review Commission formed the pillar of Trump's own campaign.
The media is going to spend the next several weeks obsessing over President Biden's replacement. This will drown out what I think was a pretty important signal from President Trump's nomination speech in Milwaukee. Allow me to elaborate...
There was a LOT in there that we could focus on. But I think that the two most important parts -- that received exactly ZERO media attention (and please, prove me wrong!) -- were the bit on China and Iran.
There is a lot of criticism of 🇩🇪 military readiness. Even (ESPECIALLY?) my good German friends are highly critical. However, everyone who thinks 🇩🇪 would get rolled in a war with 🇷🇺 should read the op-eds and analyses of 🇺🇦 war readiness pre-2014. It was much much wrose!
The reality is that Ukrainian military - as unprepared, corrupt, undermanned, and under-provisioned as it was in 2014 - did a half decent job against Russian-backed militia in Donbas. They held back the assault on Mariupol in 2014-2015. Russia did not conquer all of Donbas!
And then... over the next 7-8 years, clearly 🇺🇦 military got to a point where it could resist a frontal 🇷🇺 attack. And no, not thanks to JUST Western help. In the early days of Russian invasion, other than supply of Javelins and some intel help, 🇺🇦 did this on its own.
I hope that everyone is having a great ending to the year 2023! As you are taking it easy and mulling over the past 12 months, I thought it was a good time for a 🧵about geopolitics and finance.
When most investors think about how geopolitics and markets intersect, their unit of analysis is most often EVENTS. Something “geopolitical” – i.e., not macroeconomic, policy, or financial – occurs and one must, as an investor, react to it.
One way to react to a geopolitical event as an investor is to seek out ways in which the market has mispriced its impact on the macro fundamentals. For example, war between Israel and Hamas will endanger the global supply of oil and thus we should be long energy.