Search Results for: The Guardian

‘Playing Chicken’ in China’s Stock Market

The fact that Chinese stocks were climbing ever higher while the Chinese economy was cooling should have been an unmistakable warning of a bubble, but it caused surprisingly little concern. (Another reason to worry might have been the disparity in prices between so-called “A-shares”, which can only be purchased by investors inside China to keep the domestic market shielded from outside foreign manipulation, and stakes in the same companies available to foreign investors through the Hong Kong exchange, known as “H-Shares”. This disparity suggested Chinese investors were bidding up prices well beyond any reasonable approximation of their value.) In fact, drawn by the casino-like profits to be made in the boom, more and more small investors flocked to the thousands of brokerage houses that are now proliferating in every Chinese city in order to buy and sell while staring up at flickering electronic data boards charting the rise and fall of equity prices.

***

The party might have been excused if it had simply eschewed responsibility for what was happening. After all, markets have a logic of their own that makes them both rise and fall according to their own forces. But, instead of simply saying, “Not our problem”, it launched a massive socialist-style rescue campaign, thereby making the party responsible for everything that happened thereafter.

Why did the party allow itself to become stuck in this quicksand? Leaders evidently felt themselves threatened not only by the collapsing share prices, but by what they also feared would be perceived as an erosion of their own credibility. What they seem to have concluded was at stake was their ability to continue projecting an image of omnipotence – the appearance, at least, of being strong enough to continue guiding and controlling “all under heaven” (tianxia).

—In his Guardian story, “Why China’s stock market was always bound to burst,” Orville Schell explains what led to the rout, and why the government is intervening. “It is a game of chicken,” a China strategist told Bloomberg Business in a story about China’s increasingly forceful efforts to prop up the market. “For now, it seems to be working.”

Read the story

The Latest Human Rights Crackdown in Uncle Xi’s China

Chinese authorities have recently detained or questioned more than 150 human rights lawyers and activists in an unprecedented nationwide crackdown. Some detainees are missing, and a petition is calling on the U.S. to cancel the Chinese president’s upcoming state visit. In his April New Yorker story “Born Red,” Evan Osnos profiled Big Uncle Xi (the state news agency’s nickname for the president), “China’s most authoritarian leader since Mao”:

Before Xi took power, he was described, in China and abroad, as an unremarkable provincial administrator, a fan of American pop culture (“The Godfather,” “Saving Private Ryan”) who cared more about business than about politics, and was selected mainly because he had alienated fewer peers than his competitors. It was an incomplete portrait. He had spent more than three decades in public life, but Chinese politics had exposed him to limited scrutiny. At a press conference, a local reporter once asked Xi to rate his performance: “Would you give yourself a score of a hundred—or a score of ninety?” (Neither, Xi said; a high number would look “boastful,” and a low number would reflect “low self-esteem.”)

But, a quarter of the way through his ten-year term, he has emerged as the most authoritarian leader since Chairman Mao. In the name of protection and purity, he has investigated tens of thousands of his countrymen, on charges ranging from corruption to leaking state secrets and inciting the overthrow of the state. He has acquired or created ten titles for himself, including not only head of state and head of the military but also leader of the Party’s most powerful committees—on foreign policy, Taiwan, and the economy. He has installed himself as the head of new bodies overseeing the Internet, government restructuring, national security, and military reform, and he has effectively taken over the courts, the police, and the secret police. “He’s at the center of everything,” Gary Locke, the former American Ambassador to Beijing, told me.

***

In Xi’s early months, supporters in the West speculated that he wanted to silence hard-line critics, and would open up later, perhaps in his second term, which begins in 2017. That view has largely disappeared. Henry Paulson, the former Treasury Secretary, whose upcoming book, “Dealing with China,” describes a decade of contact with Xi, told me, “He has been very forthright and candid—privately and publicly—about the fact that the Chinese are rejecting Western values and multiparty democracy.” He added, “To Westerners, it seems very incongruous to be, on the one hand, so committed to fostering more competition and market-driven flexibility in the economy and, on the other hand, to be seeking more control in the political sphere, the media, and the Internet. But that’s the key: he sees a strong Party as essential to stability, and the only institution that’s strong enough to help him accomplish his other goals.”

Read the story

How Should Nuclear Inspections Work in Iran?

A historic Iran nuclear accord has been reached, promising to lift sanctions in exchange for the country reducing its nuclear ability. The agreement is expected to be published in the next few days and include the crucial mechanics related to nuclear inspectors’ access to sites. Scott Ritter, a former intelligence officer with the United States Marine Corps and Chief Inspector for the United Nations in Iraq from 1991 to 1998, argued against “no notice” inspections in Iran in his recent London Review of Books essay:

My first experience as a weapons inspector was in implementing the Intermediate-Range Nuclear Forces Treaty between the US and the former Soviet Union, and I’m a firm believer that on-site inspections should be part of any arms control agreement. As a United Nations weapons inspector in Iraq, I worked closely with the IAEA to investigate Iraq’s past nuclear weapons programme, and I have confidence in the IAEA’s ability to implement the Nuclear Non-Proliferation Treaty. The provisions of the NPT are at the heart of the framework agreement with Iran, and the measures contained in it – which include sophisticated remote monitoring, and environmental sampling at undeclared facilities – should be more than adequate to establish whether or not it has diverted any nuclear material to a weapons programme. The framework agreement also calls for a range of verification measures beyond those required by the NPT. These cover centrifuge production and aspects of the uranium fuel cycle such as mining and processing, and are needed to verify that Iran isn’t engaged in covert uranium enrichment using a secret cache of centrifuges and unaccounted-for stocks of uranium ore. No notice inspections to investigate ‘possible military dimensions’, however, go far beyond anything required by the NPT. The question is whether such an intrusive measure is warranted or whether, as Iran argues, the inspections would infringe its legitimate security interests.

The facts appear to support Iran’s position. Countries subjected to intrusive no notice inspections have to be confident that the process isn’t actually an intelligence-led operation aimed at undermining their legitimate interests. The nuclear framework agreement with Iran doesn’t require the IAEA to accept anything Iran declares at face value, but none of its protocols justifies no notice inspections of military sites. Iran signed the Joint Plan of Action in 2013, and has abided by the verification conditions it required without incident. This track record should count in its favour, especially when you consider the dubious results of no notice inspections since they were first carried out in 1991.

***

The history of no notice inspections in Iraq does not bode well for their use in Iran. Such inspections are intelligence-based exercises. The bulk of the intelligence underpinning the US concerns over ‘possible military dimensions’ comes from the ‘alleged studies’ documents – a series of files the IAEA obtained in 2008 which appear to show that Iran had conducted some nuclear weapons development in 2002 and 2003. Their credibility has often been called into question and the Iranians declare they are fake. There’s good cause, too, to believe that much of the remaining intelligence buttressing the CIA’s case against Iran is flawed. The strange tale of the Iranian physicist Shahram Amiri, whose defection the CIA facilitated in the spring of 2009, serves as a case in point. Amiri was for several years before his defection an American agent-in-place whose reporting was used by the CIA in formulating its assessments on Iran. But his re-defection to Iran in 2010 suggests that he may have been a double agent, calling into question all his reporting to the CIA, before and after his defection. Operation Merlin, in which the CIA attempted to pass on to Iran flawed designs for a nuclear weapon, further undermines the CIA’s credibility as a source of information about an alleged Iranian nuclear weapons programme.

Read the story

Science, Chance, and Emotion with Real Cosima

Clone dance party. Photo via BBC America

Maud Newton | Longreads | June 2015 | 24 minutes (5,889 words)

 

BBC America’s Orphan Black seems so immediate, so plausible, so unfuturistic, that Cosima Herter, the show’s science consultant, is used to being asked whether human reproductive cloning could be happening in a lab somewhere right now. If so, we wouldn’t know, she says. It’s illegal in so many countries, no one would want to talk about it. But one thing is clear, she told me, when we met to talk about her work on the show: in our era of synthetic biology — of Craig Venter’s biological printer and George Church’s standardized biological parts, of three-parent babies and of treatment for cancer that involves reengineered viruses— genetics as we have conceived of it is already dead. We don’t have the language for what is emerging. Read more…

Slavery and Freedom in New York City

"A Ride for Liberty," by Eastman Johnson (1862).

Eric Foner | Gateway to Freedom: The Hidden History of the Underground Railroad | W. W. Norton & Company | January 2015 | 31 minutes (8,362 words)

Below is an excerpt from the book Gateway to Freedom, by Eric Foner, as recommended by Longreads contributing editor Dana Snitzky.

* * *

The history of slavery, and of fugitive slaves, in New York City begins in the earliest days of colonial settlement. Under Dutch rule, from 1624 to 1664, the town of New Amsterdam was a tiny outpost of a seaborne empire that stretched across the globe. The Dutch dominated the Atlantic slave trade in the early seventeenth century, and they introduced slaves into their North American colony, New Netherland, as a matter of course. The numbers remained small, but in 1650 New Netherland’s 500 slaves outnumbered those in Virginia and Maryland. The Dutch West India Company, which governed the colony, used slave labor to build fortifications and other buildings, and settlers employed them on family farms and for household and craft labor. Slavery was only loosely codified. Slaves sued and were sued in local courts, drilled in the militia, fought in Indian wars, and married in the Dutch Reformed Church. When the British seized the colony in 1664, New Amsterdam had a population of around 1,500, including 375 slaves. Read more…

Nonviolence: The Right Answer to the Wrong Question

Rioting broke out on Monday in Baltimore—an angry response to the death of Freddie Gray, a death my native city seems powerless to explain. Gray did not die mysteriously in some back alley but in the custody of the city’s publicly appointed guardians of order. And yet the mayor of that city and the commissioner of that city’s police still have no idea what happened. I suspect this is not because the mayor and police commissioner are bad people, but because the state of Maryland prioritizes the protection of police officers charged with abuse over the citizens who fall under its purview.

The citizens who live in West Baltimore, where the rioting began, intuitively understand this. I grew up across the street from Mondawmin Mall, where today’s riots began. My mother was raised in the same housing project, Gilmor Homes, where Freddie Gray was killed. Everyone I knew who lived in that world regarded the police not with admiration and respect but with fear and caution.

Ta-Nehisi Coates reflects on the absurdity of calling for nonviolence in a city whose citizens — conditioned by decades of lethal police mistreatment and abuse of authority — expect violence and disrespect from the very police force that is supposed to serve and protect them.

Read the story

Why (and How) the U.S. Overthrew Iran’s Democratic Government

Harry Truman and Mohammad Mossadegh in 1951. Photo via Wikimedia Commons

In 1953 the United States was still new to Iran. Many Iranians thought of Americans as friends, supporters of the fragile democracy they had spent half a century trying to build. It was Britain, not the United States, that they demonized as the colonialist oppressor that exploited them.

Since the early years of the twentieth century a British company, owned mainly by the British government, had enjoyed a fantastically lucrative monopoly on the production and sale of Iranian oil. The wealth that flowed from beneath Iran’s soil played a decisive role in maintaining Britain at the pinnacle of world power while most Iranians lived in poverty. Iranians chafed bitterly under this injustice. Finally, in 1951, they turned to Mossadegh, who more than any other political leader personified their anger at the Anglo-Iranian Oil Company (AIOC). He pledged to throw the company out of Iran, reclaim the country’s vast petroleum reserves, and free Iran from subjection to foreign power.

Prime Minister Mossadegh carried out his pledges with single-minded zeal. To the ecstatic cheers of his people, he nationalized Anglo-Iranian, the most profitable British business in the world. Soon afterward, Iranians took control of the company’s giant refinery at Abadan on the Persian Gulf.

***

British agents began conspiring to overthrow Mossadegh soon after he nationalized the oil company. They were too eager and aggressive for their own good. Mossadegh learned of their plotting, and in October 1952 he ordered the British embassy shut. All British diplomats in Iran, including clandestine agents working under diplomatic cover, had to leave the country. No one was left to stage the coup.

Immediately, the British asked President Truman for help. Truman, however, sympathized viscerally with nationalist movements like the one Mossadegh led. He had nothing but contempt for old-style imperialists like those who ran Anglo-Iranian. Besides, the CIA had never overthrown a government, and Truman did not wish to set the precedent.

—From journalist and author Stephen Kinzer’s All the Shah’s Men, the history of the CIA’s 1953 coup in Iran, which deposed the only democratic government the country ever had. Earlier this month, negotiators announced an accord to restrict Iran’s nuclear program in return for sanctions relief. The deadline for a final deal is June 30.

Get the book

Why the Porn Industry Can’t Beat the Pirates

Photo by Pixabay

Keeping porn from getting ripped and posted is impossible. After having free pornography clips easily accessible for years, nobody expects that customers will ever buy DVDs in the numbers they once did. The porn industry’s sales figures are disputed; estimates range from a few billion to as high as $14 billion, a widely cited figure from a 1998 Forrester Research report that Forbes easily dismantled. But no one disputes that the percentage of revenues from DVDs has shrunk dramatically, and that piracy on the Internet shot up after the early 2000s. Takedown Piracy, which Glass founded in 2009, focuses on containing the damage.

Glass, who is dressed like an accountant, talks about the 2007 adult film financial crisis in terms of the broader recession. “It was really kind of a perfect storm of events there,” he tells me. “There was always piracy in general. But at least for adult, it went from being something in the back-shadowy corners of the Internet, or something that required a certain level of technical knowledge to acquire … [to] ‘push the little triangle button and the movie plays.’” With the accessibility came the assumption that porn should be accessible — that it wasn’t worth paying for. “People might have a certain guilt about pirating Guardians of the Galaxy or whatever, but porn — ‘ah, that’s porn,’” Glass says. “It’s considered ‘less than.’ And porn doesn’t have the revenue channels that a Guardians of the Galaxy might have. We’re not doing theatrical release. There’s not really merchandise.” Other barriers to marketing and fighting piracy are particular to porn. PayPal won’t do porn transactions, and Apple doesn’t allow any porn apps. Lawmakers are unlikely to support pornographers, and it’s difficult to legislate against piracy because many of the major tube sites are located outside the U.S.

Molly Lambert writing in Grantland about the Adult Video News awards.

The Top 5 Longreads of the Week

Below, our favorite stories of the week. Kindle users, you can also get them as a Readlist.

Sign up to receive this list free every Friday in your inbox.

* * *

Read more…

The Disappeared

Longreads Pick

A Guardian investigation reveals that Chicago police kept a secret interrogation site where abuses occurred, including at least one detainee death.

Source: The Guardian
Published: Feb 24, 2015
Length: 11 minutes (2,753 words)