Damping the Benefits of Globalization

In one of the few sensible pushes members of the Biden administration is making, Secretary of the Treasury Janet Yellen, in her meetings in Seoul, Republic of Korea, pushed for the US and our friends and allies to shift away from dependency on the People’s Republic of China for supplies and instead to friend-shore the supply chain: get the supply components and raw materials either domestically or through trade with friends and allies.

Friend-shoring is about deepening relationships and diversifying our supply chains with a greater number of trusted trading partners. The purpose is to lower risks for our economy and theirs[.]

There are, of course, criticizers of such a change in emphasis.

…some economists have cautioned that such a shift could damp the benefits of globalization and lead to higher prices.

But this is to misunderstand, or to ignore, the real risks to globalization: dependency on our enemies for Critical Items in our supply chain. The PRC, for instance, already has attempted to corner the market on rare earths, and it already has attempted to use that monopoly to coerce Japan by embargoing rare earth sales and shipments to them. Russia is already restricting supplies of natural gas to Europe.

Walking away from the PRC, and Russia, and our other enemies on supply chain matters may or may not lead to higher prices; most likely, higher prices will be limited to the period of transition away from our enemies.

The higher cost, though, from continuing dependency on enemy nations is to our national security and to the uncertainty premium resulting from those enemies engaging in restricting or outright embargoing critical supply items in order to coerce.

Maybe Time to Start Holding them Liable

The heads of the FBI and of Great Britain’s MI5 have a warning for American and British businesses regarding

the threats posed by Chinese espionage, especially spying aimed at stealing Western technology companies’ intellectual property.
In a rare joint appearance on Wednesday at the headquarters of MI5, Christopher Wray, Director of the Federal Bureau of Investigation, and Ken McCallum, Director-General of MI5, urged executives not to underestimate the scale and sophistication of Beijing’s campaign.
“The Chinese government is set on stealing your technology—whatever it is that makes your industry tick—and using it to undercut your business and dominate your market,” Mr Wray told the audience of business people. “They’re set on using every tool at their disposal to do it.”

Too much of that information aggregates to national security levels, and the lackadaisical protection of it threatens our security indirectly via the degradation of our two nations’ economic capabilities relative to the People’s Republic of China and directly through exposing our defense information to theft. That means business laxness—outright laziness in too many cases—cannot be excused with the companies involved being left simply to take their lumps.

Wray emphasized the matter as it concerns the US.

We want to send the clearest signal we can on a massive shared challenge—China…if we are to protect our economies, our institutions, and our democratic values.

To do that, business executives—particularly CEOs, CFOs, and CIOs, and their deputies—need to do their part and start taking seriously their own obligations to protect company secrets and other proprietary information, along with information of a national security kind.

It may be, then, that business executives need to start being held personally liable, civilly and criminally, for security breaches that allow hackers to steal their companies’ information. The businesses that employ them may need, as legal persons, to be held similarly liable for such breaches.

Relations with the People’s Republic of China

Maurice Greenberg, Chairman and CEO of CV Starr & Co, an insurance and investment company with subsidiaries domiciled in the PRC and Hong Kong, said in his Wall Street Journal Wednesday op-ed that he wants the US to “rebuild relations” with the People’s Republic of China.

It is in our national interest, now more than ever, to do all we can to improve U.S.-China relations.

And

The US and China have a long history of collaboration dating to before World War II. When the People’s Republic of China reopened to the world, the US extended favorable trade terms to foster China’s economic growth….

What Greenberg ignored is that the People’s Republic of China has no relation to the pre-World War II China beyond sitting in the same geography. What he also ignored is that since the PRC “opened” and we extended favorable trade terms, the PRC has been running a campaign of stealing our intellectual property through outright theft, hacking, and coerced transfers as a condition of doing business within the PRC. That nation also has been running a parallel campaign, using the same techniques, to steal our national defense and foreign policy secrets.

Frank talks can build trust relationships with the PRC? No, the only thing we can trust of what the PRC’s government men say is their commitment to replace us on the world stage and to subordinate us to them.

We don’t to rebuild relations with the PRC. Let the PRC want to build, from the beginning, relations with us.

A Border Control Thought

This idea came to me while watching another of the innumerable videos of illegal aliens piling out of pickup trucks at/near the Rio Grande and scattering into the Texas brush, trying to escape.

A bola is a pair of weights tied together by a length of cord

used to capture animals by entangling their legs. Bolas were most famously used by the gauchos….

My thought is this. Arm (some of) our Border Patrol agents with these, with specially designed slingshots or modified beanbag-firing shotguns to propel them, to capture fleeing illegal aliens and their coyotes. Bolas also can be hand-thrown to good effect—and originally were—but only from closer ranges, which may not always obtain.

Bolas are range-limited by their nature and nonlethal. Their use would take training, but no more than the gaucho who uses them on his ranch, or than the police need with their beanbag-firing shotguns. An additional advantage is that it will take some time for an illegal alien/coyote to disentangle himself from the bola, enabling a following Ranger to finish securing several illegals while the bola-armed Ranger continues pursuit, rather than the [two] of them having to capture and secure illegals one at a time.

A Simple Question

And a simple answer.

In an article in Sunday’s Wall Street Journal about the West’s economic sanctions on Russia and their impact on Russian citizens, the authors, Ann Simmons and Yuliya Chernova, ask a simple question:

How effective are the sanctions against Russia proving to be?

The answer to that is blindingly obvious and is given by the answer to this question: How many battalions has Putin been forced by those sanctions to withdraw from Ukraine?

Meantime, in the face of namby-pamby sanctions and inadequate arms and ammunition shipments, Ukraine continues to lose ground, and Ukrainian civilian women, children, and old men continue to be butchered by the barbarian.