I should really cover Mexico more, as I finally do with today’s video. This channel is very much based on US policy. Sure, I go in depth on the history and politics of a range of other countries, but it’s almost always in the framework of their significance for US foreign policy. Mexico is probably more important for the long term success or failure of the United States than any other country, except maybe China. Mexico is vastly more important for the US than any of the Middle Eastern wars or conflicts I have described.
Mexico is a trillion dollar economy. There are not many of those. It also shares one of the world’s longest borders with the United States. As I talk about today, there’s a good chance that the US and Mexico are going to converge further over the next couple decades, creating a block, with just three countries, that could remain vastly richer than China throughout the century. Or it could go in the other direction. Drug Wars, border nastiness, and outright US racism could derail this happy future. This is a topic I should cover more.
Sigh. Sunday’s election in Turkey was pretty depressing. Erdogan won re-election as president of Turkey, and his coalition retained a majority in the Turkish parliament. This puts him in a dramatically more powerful position. The recently revised constitution makes the President the center of Turkey’s political system. And with this election, the office of the Prime Minister is done away with, and Erdogan is now in more full control of the country than he has ever been.
You can find an infinite number of articles talking about how bad this development is, and I largely agree with them. But I remain optimistic about Turkey, just in the longer term. Here are two things to make you feel a bit better…
First, this is exactly what we expected when the elections were announced a couple months back. I have said repeatedly in my Turkey videos that I expected Erdogan to win the next couple elections. This has happened. But over the past two months, something really exciting happened. The CHP, the party that has failed to adequately oppose Erdogan for almost two decades now, finally put up a candidate that people actually liked. Muharrem İnce is likable, has a compelling story, and actually seems to be a decent leader, which is at least two things, if not three things that the CHP’s leader Kemal Kılıçdaroğlu does not have. In the weeks leading up to the election, İnce held rallies attended by literally millions of people. This, combined with the founding of Meral Akşener’s Iyi party last year made people surprisingly hopeful.
Those hopes were dashed. The AKP, in an alliance with the (suspiciously successful) hyper-nationalist MHP party, has managed to hold onto a majority in parliament, and Erdogan himself was re-elected. This sucks. But it’s exactly what we expected out of this election before we got our hopes up. The opposition parties remain very successful in Turkey in spite of some truly extraordinary obstacles. We shouldn’t get too depressed about something we expected all along.
The Second reason not to get too depressed about this election is the topic of today’s video. Turkey’s economy is a mess. It’s been on the edge for years now, and 2018 has a good chance of being the year when it finally tips over. When that happens, whether it’s this year or next year, Erdogan will own it completely. Last week, as people were getting more excited about the possibility of an upset, all I could think about was 2015. In June of that year, Erdogan’s party, the AK party, lost its parliamentary majority for the first time. I was quite literally dancing in the streets that June. But because the opposition parties were a disaster, they couldn’t get it together to form the coalition government necessary to get rid of Erdogan. He was able to create a new crisis with the Kurds, and call a new election. He won that 2nd election in November 2015. That felt a lot worse than Sunday did. For me anyway. If the opposition had won this time, I could have easily seen that happening again. It wouldn’t have been the Kurds this time. The economy could have crashed, and as President, Erdogan could have blamed the opposition and called a new election. We’re not going to have to do 2015 again, and for that at least I’m grateful. Today’s video lays out just how difficult a time Erdogan is about to have with the Turkish economy.
With today’s video we go all in on discussing the US stock market. There’s this idea that stock markets are somehow rational, or serious. People who talk about it are always wearing suits, and we put a lot of effort into making all the details of interest rates, portfolio management, and valuations seem boring. The stock market is none of these things. In fact it’s nuts. By going through the history of the “Trump Bump”, I attempt to draw the curtain back a bit.
Unfortunately, watching the video, I think I screwed something up. It’s not that the story I put forward is wrong, it’s just that I left too much out. The video falls into the “Presidents impact everything” school of commentary. I hate that school. The differing views market makers took of Trump and Obama are tremendously important to this particular economic story, but that doesn’t mean that presidents are actually all that powerful. I really don’t want to create that impression, and I apologize if I did so with this video.
Over the past year Saudi Arabia has experienced a perfect storm of factors in its favor. Asset prices in the US economy and elsewhere have gone nuts. Saudi Arabia is a country that owns a lot of stock, land and everything else, so that’s been very helpful. On the oil market front, the most important front there is for Saudi Arabia, they’ve had unprecedented cooperation on the OPEC production slow-down, and a series of competitors have given up millions of barrels a day in production due to sundry wars and dictatorships.
If Saudi Arabia’s ambitious plans for the future were ever going to work, 2017 would have been the year for it. But as this video shows, some of the key metrics that illustrate the hole Saudi Arabia is in haven’t changed much at all. As I said in last year’s video, and as I repeat in today’s video… Saudi Arabia is still finished.
Today’s video talks about the ambivalent approach to the use of power we see in the Marvel Cinematic Universe. The Marvel movies are often as much about how great power hurts itself and what it aims to protect as they are about bad guys. The video lays out that the DC movies have none of this subtlety. As I think more about it though, I think I was too easy on the DC movies. These films are pro-US power, and even pro-torture in a very Trumpian, Fox News way.
A couple years back, with a review of Batman V. Superman, I talked about the main influence on the DC movies, a guy named Frank Miller. Frank Miller is an undisputed genius, but he’s got a world view that is deeply rooted in the 1980s. His vision is of a world that is being torn apart at the seams. In Miller’s world we need powerful people to do what’s necessary to face “evil” no matter the cost. This vision of the world made a lot of sense in the 1980s, with the constant threat of nuclear annihilation, and with US cities falling into an abyss of crime and drugs.
I am writing this from the heart of New York City, a place that is now safer than it was in the 1950s. Despite the US’s careful cultivation of rogue states, and the ever present threat of a dirty bomb, nobody expects human civilization to be wiped out anymore. I hate to throw this word around, but from this perspective, Miller’s vision looks more than a bit fascist. And that’s the perspective the DC films have adopted. Evil is everywhere. Power must confront it. And that power should not be questioned. You can see this world-view on Fox News every day, and you can see it in the speeches of Donald Trump.
After the critical and financial failures of Batman V. Superman, and Suicide Squad, the Warner Brothers corporate offices mandated that the films get more “optimistic”. But this pro-power perspective has continued in the DC movies, regardless. Last year’s “sunnier” Wonder Woman takes place during World War I. The film-makers don’t know anything about World War I, so they just portray the Germans as Nazis. This fits with the US foreign policy establishment’s lionization of Woodrow Wilson, and insistence that US power is always used for good. As someone who would love to see pop culture reckon more seriously (or at all) with World War I, I was pretty disappointed.
I may be over analyzing things here. The DC movies have been a mess, top to bottom, since Christopher Nolan finished his last Batman film back in 2012. But there are a lot of really, really bad ideas floating around in that soup of crap…