Glenn Greenwald
Politics • Writing • Culture
US Finds Another $44 Billion for Ukraine
System Update #8: Plus, an interview with Lee Fang on his reporting of the Twitter Files
January 20, 2023
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Note From Glenn Greenwald: The following is the full show transcript, for subscribers only, of a recent episode of our System Update program, broadcast live on Rumble on Wednesday, January 18, 2023. Going forward, every new transcript will be sent out by email and posted to our Locals page, where you'll find the transcripts for previous shows. 


Watch System Update Episode #24 Here on Rumble.

On the show for which we are posting the transcript below, we reported on and examined Ukrainian President Volodymyr Zelensky's live speech to the U.S. Congress to demand more and more and more U.S. money and weapons be sent to him. Zelensky spoke, and demanded more U.S. support, all as Congress was already preparing to approve yet another massive expenditure, this time $44 billion to fuel the War in Ukraine, bringing the total to about $100 billion in just ten months. Why? Are American citizens benefiting from any of this? And does that even matter anymore? 

For our Interview segment, we spoke to one of the nation's premier investigative journalists, Lee Fang, who reported last week's installment of the Twitter Files showing that Twitter is actively partnering with the Pentagon to disseminate propaganda, fake news, and even fake profiles on its platform. We'll spoke to him about the implications of that story, as well as a blockbuster story he reported in late October about how Homeland Security has aggressively expanded its partnership with Big Tech to censor the Internet. 

You can watch the shows live, or after they are posted, on our Rumble page. For those who prefer to read what is essentially an article – since I write out most of the show – enjoy the full transcript below.


Monologue:

Russia invaded its neighbor, Ukraine, almost ten months ago to this day. Since then, the United States government has spent more than $100 billion -- $100 billion -- on that war on the other side of the world, in a country that Washington has long stated contains no vital interest to the United States. 

To put that amount into perspective, the amount the U.S. has spent in 10 months is almost double the entire Russian military budget for the year, which is $65 billion. The amount is more than double the average annual amount that the U.S. spent on its own war in Afghanistan, which we were told -- unlike what's happening in Ukraine -- was a war necessary to protect the security of American citizens. So, in just ten months, we're spending more than twice on the war in Ukraine what we spend each year on our own ostensible self-defense war in Afghanistan. And it's 17 times more than what the U.N. told Elon Musk it needed to spend in order to avert world famine in 2022, a claim that was then used to shame Musk for spending $44 billion to buy Twitter instead of feeding everyone on the brink of famine. 

That amount is also close to one-eighth of the U.S. own military budget just approved by Congress this week. A sprawling oozing package, of record-breaking package waste in the amount of $858 billion, signaling the imminent arrival of the first-ever trillion dollars military budget. One-eighth of our overall military budget for Ukraine. This is all for a stalemate of a war that virtually every military analyst agrees has no end in sight, meaning the ultimate amount spent by the United States on this war will be far, far greater by the time it's over, whenever that might be. 

Now, whatever else you might think about whether the U.S. government should be spending so much of your money on what it calls the “War in Ukraine”, which mostly means pouring money into the coffers of weapons manufacturers like Raytheon and Boeing, the CIA…

…along with some rebuilding efforts in Ukraine -- you might take some comfort, at least in the knowledge that the Ukrainian government is deeply grateful for your sacrifices. 

Except they're not grateful -- at all. If anything, they're more bitter than grateful. Bitter that the U.S. hasn’t given them more of your money. The United States dispatched a U.S. military jet yesterday to pick up Ukrainian President Volodymyr Zelensky in Poland to bring him to the United States, where he is scheduled to meet for hours today with President Joe Biden and then deliver a live address to the Congress starting in about 30 minutes. In his speech, reports made clear Zelensky will once again do what he's been doing all year, telling the U.S. government and the American people that while he sort of appreciates the billions upon billions of dollars of funds paid by American taxpayers that we've sent to that country, it is nowhere near enough. And he wants more and more and more and more. 

As AP reports, using the tone of a Hollywood adventure film starring our brave and inspiring Ukrainian leader: “On Tuesday, Zelensky made a daring and dangerous trip to what he called the hottest spot on the 1,300-kilometer (800-mile) front line, the city of Bakhmut in Ukraine's contested Donetsk province. In a video released by his office and from the Bakhmut visit, Zelensky was handed a Ukrainian flag and alluded to delivering it to U.S. leaders”. “The guys handed over our beautiful Ukrainian flag with their signatures for us to pass on”, Zelensky said in the video. “We are not in an easy situation. The enemy is increasing its army. Our people are braver and need more powerful weapons. We will pass it on from the boys to the Congress, to the President of the United States. We are grateful for their support, but it is not enough. It is a hint -- it is not enough. 

Now I have several questions about all of that, but I'd like to begin with this one as I regard it as the most important question when it comes to the always profound debate of whether the United States government will involve itself in a war or, for that matter, it's the most important question when it comes to debates over whether the U.S. government will do anything. In what ways has your life or the lives of your families been improved, secured, or enhanced by the more than $100 billion sent by the U.S. government to fuel this war on the other side of the world? 

Now, to be fair, there are some Americans whose lives have been materially improved by these expenditures. Those are the tiny sliver of Americans who own large amounts of shares of the leading weapons manufacturers. 2022 has been quite a poor year for the stock market in general. Stocks are down across the board. Here you can see the New York Stock Exchange performance for 2022 and it shows a loss overall of 13.3%. Fortunately, though, arms manufacturers have not succumbed to this down. This decline. And that's due almost entirely to the ongoing transfer of huge amounts of your money into the coffers of weapons manufacturers to send weapons to Ukraine and then to deplete our own depleted stocks. Here you see the stock trend of Northrop Grumman for this year, up almost 40%. And now you here have the stock of Lockheed, up over 25%. So, they're doing very well.

The stockholders are Americans who stock large amounts of stock in those countries. But for ordinary Americans, what is the benefit to them from these huge outlays of money for Ukraine? I'm asking that earnestly. I've yet to hear any politician who supports these expenditures even once articulate a reason why these expenditures could possibly improve the lives of American citizens, or why the U.S. role in Ukraine could do that. And that really leaves me wondering, does that question even matter anymore? Is that relevant to decision-makers in Washington? Does this policy that we are going to support and heavily fund have any real prospect of improving the lives of the people who voted for us to come to Washington with just one goal in mind to make their lives and their families’ lives better? I don't mean do they really have that motive? I know they don't. I mean, do they even pretend any longer to have that? 

I pay very close attention to the debate in the U.S. over this war in Ukraine, from the very start. I was even placed on an official list of Russian propagandists by the Ukrainian government, alongside people like Sen. Rand Paul and former Congresswoman Tulsi Gabbard for the crime of questioning whether my government should be involved in that war. Apparently, along with believing he has a claim to stick his hands into our national treasury without limits, President Zelensky also clearly believes he has the right to maintain blacklists of American journalists and politicians who commit the crime of openly debating our government's war policies in our country. But the real point is, I have paid very close attention to the debate and from the beginning, those who have been urging, and demanding U.S. support for Ukraine without limits have not even bothered with this pretense that the war was necessary for or even relevant to improving the lives of American citizens. 

Now, maybe you are someone who doesn't think that matters. One could mount a coherent argument why it shouldn't. One might argue, for instance, that all human beings have equal value and therefore the U.S. government should not prioritize the lives of Americans over the lives of Ukrainians or anyone else -- that American politicians should use your money not to help you and your family, but to help anyone in the world who needs it, even if it comes at your expense.

Or perhaps one might say that Americans benefit in some theoretical or remote way from having our government adopt a foreign policy that is designed to promote morality and democracy and human rights in the world, which would then, from that premise, it would follow that it's important that our government spend $100 billion and counting on the war in Ukraine. You may recall that that was a key argument defining the ideology of the Bush-Cheney neocons and also their ideological cousins, the liberal interventionists of the Clinton and Obama administrations, namely that Americans will somehow be better off if we go around the world using our military and CIA to overthrow repressive governments and then spend a decade or two or three or four building a thriving democracy in those countries to replace it. 

Now, that the U.S. government is guided by morality and democracy in its foreign policy would be, or at least should be, an extremely hard sell, given that its closest allies are, and always have been, some of the world's most despotic and tyrannical regimes. Leaving aside the U.S.'s own wars and bombing campaigns in places like Iraq, Afghanistan, Libya, Syria, Somalia, and all the rest, it has always amazed me how many people are willing to believe American political leaders when they stand up and say that their motive in going to war or otherwise involving themselves in the internal wars of other countries is to vanquish tyranny and repression -- even as those same very same leaders, often days before or days after they say that go and visit Cairo or Riyadh and hug and embrace the most savage despots in the world and offer them more money and arms to prop up their regimes, as the U.S. has been doing for decades. 

But some people for some reason do continue to believe in this admittedly feel-good fairy tale about U.S. foreign policy-- that our real motive is to go around the world vanquishing despotism and defending democracy. So perhaps it's coherent, even if it's not remotely truthful, to claim that this is the reason we should involve ourselves in the war in Ukraine: that somehow our lives will be better off theoretically if the government in Kyiv is more democratic and less authoritarian. Again, that's a strange argument to make on the facts, given that President Zelensky, even before Russia invaded his country, has shut down opposition television stations and this year has repeatedly closed even more, banned opposition parties, and last month even banned the Ukrainian Orthodox Church. Not exactly the hallmarks of a Democratic leader.

But the idea that Americans have some direct, concrete, vital interest in who governs Ukraine or what the balance of power is between Ukraine and its neighbor in Russia has never held real sway among the mainstream Foreign Policy community in Washington. That's why there was so much indignation and bafflement in Washington when Bill Clinton and George W Bush began making gestures toward admitting Ukraine into NATO-- an alliance that was originally designed, you may recall, to defend Europe from attacks by a country that no longer exists, the Soviet Union. Why in the world would the U.S. pledge go to war in defense of Ukraine? And why would it be willing to risk conflict or even war with the country with the world's largest nuclear stockpile, Russia, over that country? 

I have nothing against Ukraine. Genuinely. That country, like every country on the planet, has a lot of good and nice people in it, and I can genuinely understand and empathize with the desire of many of them, by no means all of them, but many of them to avoid living under the control of Moscow and wanting instead to have their own democratic autonomy, to choose their own leaders in elections. But that's true of almost every country in the world where you could find at least some people who would like the U.S. to involve itself in their internal affairs, either by having the U.S. vowed to treat an attack on that country as if it's an attack on our own country -- who wouldn't want the world's richest and most powerful country to pledge to protect you if you are attacked -- or by having the U.S. attempt to destabilize its leaders? 

There really were many Iraqis -- especially some Kurds and some Shiites -- who did want the U.S. to invade and overthrow Saddam Hussein, whom they hated. One can find -- in countless countries -- a group of people here or there who hate their own government so much that they would love for the United States to risk the lives of our own people and spend our own treasure in overthrowing that government for them and replacing it with something better. But down that path lies, by definition, endless war, and more so, a complete abandonment by the U.S. government of what I thought was its primary responsibility -- improving the lives of American citizens. And down that path, we would instead devote ourselves to changing one country after the next on every continent, on the planet. 

And that is why for decades, polling data has overwhelmingly shown that Americans do not want the U.S. government to play the role of imperial overlord or the world's policeman, but instead to prioritize their interests. And that's why George W Bush found success in 2000 in running on a pledge to restore what he called “humility” to American foreign policy, criticizing the Clinton-Gore administration for excessive use of military force in ways that had nothing to do with the interests of the American people, such as in Yugoslavia.

And after Bush, both Obama and Trump found success with similar messages, even if expressed differently, namely that the U.S. should stop involving itself in the internal affairs of other countries, especially in their wars, absent some direct threat to the American people or the American homeland. 

And when it came to Ukraine specifically, one of the most eloquent and persuasive people who scoffed at the idea that the US should be willing to confront Russia over Ukraine was former President Obama. In 2016, his last year in office, he gave an extensive, wide-ranging interview to the neoconservative Jeffrey Goldberg, who had been rewarded for his service of lying continuously to get the U.S. to invade Iraq by becoming the editor-in-chief of The Atlantic. 

In a lengthy interview on almost every aspect of Obama's foreign policy views, which the Atlantic suitably headlined “The Obama Doctrine”, Goldberg, being a neocon, was clearly angry at Obama's refusal to do more to aggressively confront Russia, both in Syria, where Obama allowed the CIA some latitude to overthrow Russia's ally, Bashar al Assad, but, in the view of bipartisan Washington, constrained the CIA way too much and also in Ukraine, where Obama repeatedly refused bipartisan pressure to send lethal arms to Ukraine on the ground, in Obama's view, that Ukraine was not important enough to United States to risk confrontation with Russia in order to defend it. 

Goldberg summarized Obama's worldview when it came to Ukraine as follows -- this is Goldberg’s describing how Barack Obama thinks: “The fact is that Ukraine, which is a non-NATO country, is going to be vulnerable to military domination by Russia no matter what we do’, Obama said”. He went on: “ Now, if there's somebody in this town – Washington -- that would claim that we would consider going to war with Russia over Crimea and Eastern Ukraine, they should speak up and be very clear about it. The idea that talking tough or engaging in some military action that is tangential to that particular area is somehow going to influence the decision-making of Russia or China is contrary to all the evidence we have seen over the last 50 years”. Goldberg went on: “I asked Obama whether his position on Ukraine was realistic or fatalistic: ‘It's realistic’, Obama said. ‘But this is an example of where we have to be very clear about what our core interests are and what we are willing to go to war for’”. 

It was long the standard view of realists in Washington, D.C., that Ukraine has no vital interest in it to the United States. It is not geo-strategically vital. It has no vital interests such as oil. There's no reason that the U.S. should consider or has ever considered Ukraine a country worth fighting for, worth spending huge amounts of money to defend, worth risking confrontation with Russia, their neighbor, for whom Ukraine is, always will be, and always has been a vital interest. 

And yet, despite that, the spigot of money immediately opened the minute Russia invaded Ukraine in the name of defending Ukraine, which Obama said was not of vital interest, and to this day, it has never stopped flowing and it continues to flow in insane amounts.

So, just yesterday in The New York Times, you see this headline that “Congress Proposes More Than $44 Billion for Ukraine” -- more $44 billion on top of the close to $60 billion the U.S. has already spent this year for that war and now wants to send another $44 billion to Ukraine. And the article reports:

The giant annual spending bill unveiled by Congress on Tuesday contains more than $44 billion in emergency aid for Ukraine, renewing the U.S. commitment to the country's defense as Russia’s invasion grinds towards a second year. […] “The new wave of aid for Ukraine -- billions more than President Biden requested in mid-November -- comes amid growing concerns among the country's backers about the depth of America's support. Some Republicans finally have questioned the massive spending, while some progressives have called for peace talks. […] The aid package consists mostly of military spending, including nearly $20 billion to arm and equip Ukraine's forces and to replenish Defense Department stockpiles from which weapons are being sent to Kyiv. Some of that money would also be used to bolster the defenses of America's NATO allies to protect against further Russian aggression. 

Now, you'll note there that The New York Times said that the amount that Congress wants to allocate to Ukraine, $44 billion, is billions more than what the Biden administration even requested for the second time this year, the first time being in May. The Biden administration requested a gargantuan amount to spend on Ukraine and Congress decided to just arbitrarily pour billions of dollars on top of that and send even more. 

From The New York Times last week, you see the headline, “The White House Requests nearly $40 billion from Congress for Military Aid and Pandemic Aid”. and the article reads: “The White House asked Congress on Tuesday to approve nearly $48 billion to prepare for a possible winter surge in Coronavirus infections and to direct additional support to Ukraine”. […] “The White House proposed sending $37.7 billion -- not $43 billion, but $37.7 billion -- to Ukraine, setting aside $21.7 billion for military equipment and to replace Pentagon weaponry that has been already sent to the country. It would also allocate 14.5 billion for humanitarian aid…” 

So, we keep seeing the same pattern that it seems like the United States government has an open checkbook ready to send limitless amounts of money to this war that has no end in sight. Now, let's review how much the United States has spent so far and how this timeline has gone. 

The first authorization to send billions of dollars to Ukraine was in March of 2022 -- just two weeks or so after Russia crossed over the border and sent large numbers of troops into Ukraine -- there you see from the Associated Press, “The United House OKs 13.6B for Ukraine in Huge Spending Bill”. The AP called $13.6 billion a ‘huge spending bill for Ukraine’. And at the time, there were all kinds of talk about how the U.S. wouldn't do all sorts of things because it didn't want to end up risking escalation that it ended up doing – including, this week, sending the Patriot air defense missiles system over to Ukraine.

But at the time, $13.6 billion was considered, as the AP called it, a huge spending bill. The Biden administration ran through that in less than two months and that's why just less than two months later, on March 10th, this time, the House passes a $40 billion military aid package to address Ukraine. And what happened there was that the Biden administration had requested $33 billion -- almost three times what the AP, just six weeks earlier, called ‘the huge spending’ package -- and Congress decided, “you know what, $33 billion is just not enough. Let's just throw $7 billion on top of it”. And they did. And it passed very quickly. 

There are a couple of notes about what happened when it passed that are really important to remember. Number one, all of the no votes in both the House and the Senate came from Republicans: 57 House Republicans, primarily the right-wing populists, the harder core MAGA supporters -- who believed Donald Trump, when he pledged, in 2016, that Americans shouldn't involve themselves in wars that don't have a direct threat to the American homeland or the American people. Those types voted no, 57, and 11 more Senate Republicans.

So, a total of 68. House Republicans and Senate Republicans voted no on this bill. Obviously, the overwhelming majority of the Republican caucus in the House and the Senate voted for Biden's war policies, but at least a substantial minority of Republicans did not. The total number of Democrats who voted no on this $40 billion war package for Ukraine, $7 billion more than even the Biden White House requested was zero. Zero. 

Every Democrat, including the “Independent” Bernie Sanders and AOC, and every member of the Squad and Nancy Pelosi and Chuck Schumer and the rest of them, every last Democrat and both houses of Congress united unanimously to send $40 billion of your money to Ukraine without a single one of them uttering a peep of opposition. On top of that, Sen. Rand Paul attempted to add an amendment to this $40 billion that would have said ‘we should create oversight provisions on how this money is actually spent’.

By this point, CNN had already reported that the United States government has almost no idea where these very sophisticated weapons were ending up. They send them over to Ukraine, a country notorious for the last decade for being the most corrupt country in Europe, and have no idea where these weapons are ending up. In five or 10 or 15 years, it's likely your children will be asked to go to war against a terrorist group or a country because they have these weapons that somehow got to those countries from Ukraine. They have no idea where these weapons are going and no one has any idea where this money is going. 

I wouldn't say that Raytheon and General Dynamics and Boeing, let alone the CIA, where this money is going, are world renowned for keeping great track of how money is spent. And the Ukrainians, to put it mildly, know better. But even the idea that there should be some safeguards put on where this money is going in, how it's being spent, created indignation from the establishment wings of both parties, united as usual when it comes to these kinds of questions. 

Rand Paul, as I mentioned earlier, got put on the official list aside alongside me and Tulsi Gabbard being a Russian agent or propagandist by the Ukrainian government, in part because he just wanted some safeguards on how your money was going to be spent. Even that was too much dissent from Washington. Mitch McConnell viciously attacked Rand Paul, as did his counterpart in the other party, which we're told can never agree on anything, Chuck Schumer. So that's how that $40 billion got passed in less than six weeks. They burned through that 13.6 billion and then they passed it without any sense of transparency or safeguards or accounting. 

Now, two months later or three months later, in September of 2022, there was a new stopgap spending bill for another $12.3 billion in aid to Ukraine. So that's almost $14 billion to start with, plus another $40, which is $54 billion. Added to this $12 billion, which is now $60 billion. That's just in September. And then we have other $44 billion sent today for a total of $100 billion. 

Now, I don't think it's controversial to note that many Americans here at home are not doing very well. You can pick whatever problem you think is the gravest: lack of wage increases and wage stagnation; the need to work multiple jobs if you have children, especially even if you're a married couple -- the fact that one parent, if they want, can't stay home and take care of their children any longer, what was a foundational attribute in property of American life for decades and that no longer is the case. It's gone.

There aren't enough good jobs, so people have to work two jobs just to sustain their family, to pay other people to raise their kids, and to pay other people to take care of their elderly parents. Huge numbers of people are without health care. Some of those people without health care got Medicaid benefits during the COVID pandemic on the grounds that, ‘look, if we're going to have this pandemic with a very serious disease that can kill a lot of people, then we ought to give people Medicaid’. Those people, however, are about to lose their Medicaid by the millions -- not Ukrainian citizens, but American citizens. 

Here you can see, from AP this week, “Millions to Lose Medicaid Coverage Under Congress's Plan”. The AP reports: “Millions of people who enrolled in Medicaid during the COVID-19 pandemic could start to lose their coverage on April 1 if Congress passes the $1.7 trillion spending package leaders unveiled Tuesday”. It has money for Ukraine, but not for your fellow citizens to have health care. “The legislation will sunset a requirement that the COVID-19 public health emergency that prohibited states from booting people off Medicaid”-- they're now free to:

The Biden administration has been under mounting pressure to declare the public health emergency over with 25 Republican governors asking the president to end it in a letter on Monday, which cited growing concerns about bloated Medicaid enrollment. Millions are expected to be bumped from the program, which grants healthcare coverage to nearly 80 million low-income people throughout the country. The federal government will also wind down extra funds given to states for the added enrollees over the next year under this proposal.

I really just want anyone to explain to me in clear language how it's justifiable that the United States is spending $100 billion on a war on the other side of the world where there are no vital U.S. interests, while people at home are suffering in all sorts of ways -- whether it's this for Medicaid coverage or all the other ways that Americans are suffering -- because the U.S. government claims it has insufficient funds in order to improve their lives. 

It is amazing -- isn't it? -- that no matter what you propose to do for the American people, in Washington people will stand up, lobbyists, the establishment linked to those parties, and say, we can't do that, we can't afford it. And yet, when it comes to fueling wars that have no theoretical relationship to the lives of the American people, no one ever asked that question “How are we going to pay for it?”.  We just borrow and borrow and borrow more from the Chinese become more and more and more into debt. And that's how America's imperial wars are funded. Now, as I noted, you would think this would be an argument that progressive members of Congress and Democrats would be making. And yet they don't. They voted for the $40 billion unanimously. 

But let me show you one person who has made this argument from the very start of the war. This is somebody whom we're all supposed to agree is crazy and insane, and maybe she is if you want to think that. But if you watch this clip, she certainly seems a lot less insane than most other people in Washington who somehow believe it's justifiable to send enormous sums of money to the war in Ukraine while people at home suffer from fentanyl overdoses and the industrialized towns, and lack of health care, and stagnating wages. Listen to what the Republican congresswoman from Georgia, Marjorie Taylor Greene, said during a debate over whether to send that $40 billion to Ukraine. She was talking in May 10th of this year. 

Rep. Marjorie Taylor Greene: Thank you. I rise an opposition to the Ukrainian supplemental bill: $40 billion, but there's no baby formula for American mothers and babies. An unknown amount of money to the CIA in the Ukraine supplemental bill but there's no formula for American babies and mothers. If this is about claiming that it's about saving lives, let's be real. Then we would care about war-torn countries like Ethiopia. So that's a bunch of hypocrisy because I never hear Ethiopia brought up here. Totally ignoring, completely ignoring our own border crisis, our own baby formula crisis, and brutal inflation skyrocketing gas prices that no one can afford. But $40 billion for Ukraine? Stop funding regime change and money laundering scams and U.S. politicians’ cover-ups of their crimes in countries like Ukraine. The American people do not support paying for constant U.S. involvement in foreign affairs while our own government fails our own country. 

Now, if that's insane and hateful and bigoted, I'd like a little bit of more insanity, hatred, and bigotry in our politics in Washington, because that is purely rational. And if you are somebody who believes the U.S. should continue to involve itself in this war in Ukraine – which, from the start to me at least, was clear, their real objective was not to save Ukraine but to sacrifice it -- in order to destroy and erode a country which, for some reason, the United States has decided to regard as an enemy, Russia, -- even though it spends 1/13 on its military what we spend on ours and could never directly threaten our country, nor is it trying to. But for some reason, we've decided to insist that they're enemies and we're willing to sacrifice Ukraine in order to weaken it in a war that is depleting both countries but destroying Ukraine. But if you're somebody who does that part you, I think, have the obligation to answer a question, which, as I said, I've never heard answered, the one that Marjorie Taylor Greene and a few others in the Republican Party are asking, which is how is it that the lives of the American people are being improved or enhanced or defended by continuing with that policy? 

So, as I indicated at the start of the show, one of the nation's best and most dogged investigative journalists, Lee Fang, one of the hires I made at The Intercept, of which I'm proudest, used the so-called Twitter Files to publish a true bombshell story uncovering the vast online psychological influence operations run by the Pentagon to shape global attitudes and opinions about foreign countries and U.S. foreign policy, as well as Twitter's in hand-in-hand, cooperation to support these deceitful propaganda operations. 

His report detailed the extent to which the U.S. military has for years been setting up and operating fake news portals, online personalities, and memes to manipulate public opinion. And how Twitter, despite pledging to crack down on state-backed influence operations of other countries, not only allowed these U.S. operations to continue but granted them special privileges. 

On October 31st, Lee, along with a colleague, published an equally vital story on the intense cooperation between the U.S. Security State and Big Tech. Using secret documents he obtained from Homeland Security, he reported the invasive plans of DHS and other agencies to integrate themselves further into Big Tech to further control the flow of information over the Internet. As one of the few American journalists left and American media practicing true adversarial investigative reporting, I'm thrilled to have Lee tonight in our Interview segment.

The Interview: Lee Fang

G.G.:  Hello. So good to see you. First of all, thanks so much for your taking the time for your first appearance on our show and for your new Substack, which you should take a little time and talk about if you want. 

Lee Fang:  Hey, thanks, Glenn, and congratulations on your show. Appreciate you having me. Yeah, I launched a Substack yesterday just to kind of provide additional analysis and documentation to my reporting so readers can stay up to date with what I'm doing. And I want to provide more context and explanation. You know, my normal reporting, I kind of just do by the books, regular journalism, but the Substack kind of provides a different format. I can give a little bit of an extended explanation. I can talk about how I do my work. I can talk a little bit about analysis and you know, the way that I kind of observe politics and society. So, I appreciate you plugging that. 

 

G.G.:  Yeah, I'll probably regret saying this, but I do consider myself, even if you don't, the godfather of your Substack page since I've been badgering you for at least two years to just start. Well, I'm glad you finally relented. So, before we talk about your story of yesterday from the Twitter Files, I want to ask you to revisit the story that you published at the end of October, along with Ken Klippenstein, that reported on Homeland Security's increasing relationship with Big Tech, and specifically, its intention to use that to better sense of the Internet from its perspective. I think people have forgotten that story because of the latest revelations in the Twitter Files. So, remind us of what that story showed and what its key revelations were. 

 

Lee Fang:  That story took a look at the evolution of the Department of Homeland Security, which has really refashioned itself from focusing on a  kind of global jihadism and threats from al-Qaida -- you know, security at airports and that type of thing, to looking more and more at supposed dangers from speech on social media. And this is a focus that kind of began in 2016 after the, you know, the Russian hacking and the Russian Facebook pages and meme pages on Twitter. There was a huge reaction to that, as you know, and you've covered it so much, where Washington said “We want answers. We can't have foreign meddling in our election. That's the greatest threat we face”.

 

So, the Department of Homeland Security, as the kind of War on Terror was winding down, was looking for a new focus for its multibillion-dollar budget, and they started creating new divisions within the agency focused on social media companies. They started creating roundtables, information-sharing meetings, and weekly kind of check-ins. It kind of had a mission creep for their role, where they see themselves as guardians of democracy by putting themselves as the kind of stewards of what we can say online and what's information and what's misinformation. There is a lot of alarming kind of issues presented by this new agenda by the DHS, but the biggest and most obvious one is how is the government going to tell us what is true and what is not on contentious political issues. We talked to a whistleblower who shared an image with us showing that the DHS planners, as it were, folks who were kind of setting the agenda for the next four years, said that they hoped to expand the misinformation/disinformation team to police, supposed misinformation around racial justice, around the origins of COVID-19, around the effectiveness of vaccines, around the war and other… the withdrawal from Afghanistan…

So, you know, these are issues where we have a spirited public debate, where the government really has no appropriate role telling us what's true and what's not -- especially since I don't think anyone knows, you know, the origins of COVID or what is the kind of correct answer around racial justice. I mean, these are inherently subjective, politicized issues and why the government should be weighing in and telling us what's true and what's not true, what's misinformation, what's disinformation. It's clearly not it's not appropriate and is clearly an effort to censor and stifle First Amendment-protected speech. 

 

G.G.:  Yeah. I mean, I think it should be intuitively obvious why we don't want the government to be the final arbiter of truth and falsity. Just, in theory, that should be obvious. But if you want an example that should close the debate forever, for the first year of the COVID pandemic, people were actually banned from those social media platforms for opining that, it was debatable what the origins of COVID actually were. A very consequential question, obviously, how this worldwide pandemic began, and it turned out that even the U.S. government admitted, but a year later, that that is an open question. And yet for a year, it was declared a closed question to the point it couldn't be debated on the Internet because the government said it shouldn't.

But let me ask you about the kind of argument that's made to justify these policies, which is kind of done it out in the open. Homeland Security, which is only created in 2002, this sprawling new bureaucracy has long identified what it claims are the greatest threats to the American homeland. And as you said, typically it's al-Qaida or ISIS or foreign countries. And during the Trump years, they started explicitly saying, look, the greatest threat to the American homeland does not come from outside our borders, but from within. It comes from white right-wing extremism and white supremacist ideology, especially people willing to take out violence in the name of that cause. And so, it's a legitimate function of us to protect the country by focusing our attention inward, because that's where the real threat is. Why isn't that a legitimate way for the U.S. Security State to see its role? 

 

Lee Fang.:  Well, any of these terms, you know, calling anyone a terrorist, whether you're saying that, you know, there's kind of right-wing, white supremacist, you know, nationalism, that type of thing, or ISIS or Islamic Jihad, you know, these are inherently political terms. It's very easy if you're a bureaucrat in Washington or a politician to inflate the fear and the danger of these groups, to use them as a convenient boogeyman for expanding your bureaucratic power. If you just look at the numbers, you know, these are threats that can quickly mobilize public opinion, but, you know, we live already in a violent country. You know, something like 16-17,000-gun homicides a year.

 

The number of actual whether that's foreign terror organizations or domestic, you know, right-wing or left-wing terror groups is minuscule. It really is. So just from my perspective as a kind of utilitarian, the actual threat and danger are constantly overhyped. It's constantly, you know, used as a cudgel for these politicians and policymakers to demand more resources, to demand more of an encroachment on civil liberties, to call for greater surveillance, to call for more restrictions on our daily lives, whether that's at airports or on social media. They're constantly seeking to expand their role. 

 

G.G.: So, let's turn to the story from yesterday that you're about to do with your access to the Twitter Files that obviously has a lot of relevance to the story you reported in late October we just discussed. But before delving into this substance, there's been a lot of attempts to denigrate this reporting by suggesting there's something nefarious about the relationship between Elon Musk and the reporters who have been reporting it, that there are conditions he imposed on what you can and can't say, that he's paid you to say what he wanted. Is any of that true? Were there conditions imposed on the access that you had to this material in terms of what you were allowed to report or couldn't? 

 

Lee Fang:  No. No conditions. I signed nothing. I agreed to nothing. You know, I'm happy to have the opportunity to come in and do some reporting on these files, but, you know, to be perfectly candid, I simply came to the Twitter offices last week and for three days without any editorial input, no one told me what to look for or asked me what I was doing. I came in and I made some requests to a Twitter attorney who would go to another room and then try to kind of fulfill those requests using some research tools on various documents that I asked for. And another Twitter engineer helped fulfill other requests because I also asked about certain tools that they use to manage people's Twitter profiles. That's about it. They did not kind of pressure me or reach out in any way.

 

There's actually no money exchanged and nothing like that. You know, I never met Elon Musk, but, you know, this is an interesting opportunity, so I seized it and hope to do more public interest-focused reporting using these documents. If there's stuff in those documents that helps us understand the world better, understand this company better, understand how public life, whether it's social media or interactions with the government can be kind of elevated or illustrated with journalism. I'm happy to do it. 

 

G.G.: Yeah, you used to be kind of uncontroversial that if you were a journalist and someone offered you the opportunity to get information that helped the world understand powerful actors, and important decisions better, you immediately say yes without regard to who that source is or what their motives are,  but that seems to have changed quite a bit in at least some sectors of journalism. So, you're the third person I've spoken with… Go ahead. You want to say something about that? 

 

Lee Fang:  Well, I should just say, you know, I've reported on dozens and dozens of stories with kind of unusual sources, you know, there are legend Qatari hackers that I have obtained documents from, Algerian hackers, Russian sources, FBI, law enforcement, leakers, you know, people of various motives. And I get that Elon Musk is an unusual, controversial source, but I've done so many stories with other kinds of unusual sources. What matters is, you know, is it a public interest story? Do the documents of the story actually tell something that serves the public interest? And here that's clearly the case. But, you know, of course, people obsess over Elon Musk because he is a kind of a polarizing figure, I get that. But it doesn't reflect the journalism. 

 

G.G.: Yeah. I mean, you know, in Watergate, what we're all taught in childhood is like the pinnacle of journalistic excellence, the main source, they called Deep Throat, turned out to be an FBI official, bitter that he was passed over for the position of FBI director by Nixon. And his leaks were designed to get vengeance on Nixon for that what he took as a personal affront.

 

So, you're the third journalist that I've interviewed who has reported on these files after Matt Taibbi, then Michael Shellenberger, last night, with whom I spoke. There is a lot of kind of complex documents being tossed around, and a lot of important revelations being divulged at once. I think sometimes the public has a hard time processing that when that's the case. So, talk about what you regard as, say, the two or three most significant findings from the first installment of reporting that you did. 

 

Lee Fang.:  Well, this is kind of two simultaneous stories that I reported yesterday. One, you know, as you described at the top of the segment, you know, we're looking at the kind of hypocritical policies of Twitter that, you know -- this is a company that promised, in 2016, that they rapidly identify and thwart and shut down all state-backed influence operations, you know, covert government efforts to manipulate their platform using fake aliases, fake identities to shape public opinion in a foreign country or to place military or intelligence propaganda. They've said -- they testify to Congress -- that they're against it and they're going to shut down all government action.

 

And this story also looks at the U.S. military and their sprawling effort and their interactions with Twitter. Twitter gave essentially a concierge service to CENTCOM, U.S. Central Command, which has really been kind of orchestrating this influence and psychological operations throughout the Middle East, using these Arab language accounts to create what looks like authentic interactions, authentic people and news sources, news portals.

 

I'm talking about the accuracy of the U.S. drone strikes in Yemen, you know, success in wars and military engagement with U.S. enemies like al-Qaida and ISIS; promoting anti-Iran and anti-Russia narratives in the Middle East; promoting the Saudi-led coalition that's fighting a war in Yemen, you know. This kind of relationship between Twitter and the military goes back at least until 2017. That's the earliest I found documents where you have officials from CENTCOM sending an email to Twitter with a list of their Twitter accounts that they control or asking for special privileges for those accounts.

 

And I can see in the Twitter documents that, as soon as they sent that request, that same day, Twitter officials went to the back-end of their tools and provided a special tag to those accounts that were requested by CENTCOM, and they gave a special wireless tag that's basically giving the privileges of a blue check verification without the visible blue check. So, what does the verification do beyond being a status marker, I guess?

 

It was even without the blue checked and the Twitter back end that blocks accounts from being flagged as spam or for abuse or for interacting with accounts that might be, you know, promoting terrorist content that helps them be more likely to trend or be indexed by hashtags and more visible, basically on the Twitter timeline. So, they're providing very close support. And, you know, initially, some of these CENTCOM accounts were publicly identified as affiliated with the military. But for a very long period, they shed that affiliation and that disclosure. And Twitter was well aware. We can see in the emails that they were talking about these kinds of cloak-and-dagger Twitter accounts and not sure what to do with them. 

 

G.G.: So, one of the reasons, I think, that I was so contemptuous of the kind of faux indignation in 2016 over the idea that Russia would interfere in our sacred Iraq, just because obviously the U.S. government has been interfering in the message politics of virtually every country, including Russia -- in ways far more significant than a few fake Facebook ads or Twitter bots or even hacking operations that Russia was accused of doing. The United States actually created an entirely new fake Twitter in order to destabilize the Cuban government by learning young Cubans.

 

And there are all these stories like that of the U.S. government doing similar things on the Internet. I suppose some people might defend this on the grounds that Twitter is an American company, and therefore we want Twitter to stop other governments, especially enemy governments, from being able to disseminate their propaganda over Twitter. But why shouldn't we as Americans want our own government to have the power to use the Internet to promote its own propaganda and destabilizing operations and propaganda operations throughout the world? Why shouldn't Twitter be working with the U.S. government this way? 

 

Lee Fang: Well, you know, I would just make a few comments around that. One is that I think, you know, the U.S. has a much higher moral high ground. You know, if it can conduct itself in a way that's truthful and ethical, if they expect other countries to treat us in a certain way, we should reject that same kind of behavior abroad, not act hypocritically. And the other kind of dynamic here is that this is the Internet. You know, we've seen in the past many scandals with the U.S. military using its psychological operations, teams and resources, to illegally, and unethically, influence American policymakers. You know, Michael Hastings at Rolling Stone has a great story showing that U.S. forces in Afghanistan had used their psychological influence operations to influence American policymakers, and members of Congress, who were going to go visit the U.S. war effort.

You know, we've seen Donald Rumsfeld with his scandal, where he was kind of organizing efforts around us -- retired military generals to appear on CNN and other major networks to help sell the Iraq war, the Afghanistan war, the surge or what have you. So, you know, for these kinds of social media accounts, what's interesting here is that although they were targeted in Syria and Iraq and Yemen, Kuwait, and other places in the Middle East, this is the Internet. You know, I was kind of tracing the influence of these social media and these social media accounts that were set up by CENTCOM and kind of allowed by Twitter.

 

They trickled back to U.S. politics. A lot of U.S. media outlets covering issues in Yemen and Syria would end up citing these accounts without realizing that they were actually, you know, part of a military psyops campaign. So, you know, even if you're targeting a certain Arab or local population in the Middle East, this kind of propaganda trickles back and we end up kind of seeing a U.S. military psyop campaign and potentially misinforming even American voters and the American population. So, you know, this stuff has blowback in many ways. 

 

G.G.: So, last question. We only have a couple of minutes left -- in part because I have to be on Tucker’s show and they're already obnoxiously calling, even though they know we're not off the air until 8:00. But I do need to be done, just if you could, in a couple of minutes. One of the things that struck me as you were talking about all these different propaganda operations that the Pentagon does in these far-flung parts of the world -- including helping the Saudis in their war in Yemen -- it's the same point I was making, we were talking about just now: Presidents Zelensky’s address right now as we speak before congress demanding to get more billions on top of $100 billion, we already sent… What does any of this have to do with the lives of the American people? How does any of what you just talked about in terms of the Pentagon's propaganda and information operations, in terms of Yemen and Syria and all these places, in what way does it even affect, let alone improve, the lives of American citizens? Is that question something that occurred to you as you were reviewing all this? 

 

Lee Fang: Yeah, absolutely. I think this is actually most acute for the war in Yemen or,  at least for the war in Ukraine, we're having some debate, I mean, there isn't a very vocal peace lobby fighting for a diplomatic end or resolution to this conflict. For the war in Yemen has raged since 2015. There are over, I believe, 1.5 million displaced people in Yemen, it is the poorest country in the Arab world. Thousands upon thousands of children were killed in this conflict and we have no debate about this in the U.S. We have no one who, that I know, who's voted for this conflict. You know this is something that's happened in the background that it appears to just be a proxy effort between Iran and Saudi Arabia. Yet the U.S., because of our ironclad alliance with Saudi Arabia and our need for their oil, provide lots and lots of military support and apparently social media support for this military conflict. There's no debate about it in Washington and there's no serious discussion, even though it clearly affects millions of lives. 

 

G.G.: Absolutely. So, Lee, first of all, again, congratulations on your Substack. I hope people go and follow you in our aftershow especially. We'll put the address where people can do that. I do have to run and I really appreciate your taking the time. I'm going to be pursuing you to appear on our show very shortly again in the future. 

 

Lee Fang: Congrats again on your show. Thanks for having me. 

 

G.G.: Thank you. Have a great night. Yeah. 


Well, so that is our show for this evening. As I said, as usual, we go and do our aftershow immediately on Locals. But tonight -- because I will just in a couple of minutes be on Tucker Carlson’s show, soon as I'm done -- we will have a little bit of a delayed start to our aftershow. But I'll be right on Locals to start as soon as I'm done, probably in about 15 to 20 minutes. 

Thank you as always, for watching. I hope you'll join us tonight and tomorrow night and every night here at 7 p.m. Eastern, live, only on Rumble

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South Korean Economist Ha-Joon Chang on the Economic World Order, Trump's Tariffs, China & More
System Update #410

The following is an abridged transcript from System Update’s most recent episode. You can watch the full episode on Rumble or listen to it in podcast form on Apple, Spotify, or any other major podcast provider.

System Update is an independent show free to all viewers and listeners, but that wouldn’t be possible without our loyal supporters. To keep the show free for everyone, please consider joining our Locals, where we host our members-only aftershow, publish exclusive articles, release these transcripts, and so much more!

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We focus a lot on this show on international relations and foreign policy from the perspective of what often shapes them – things like wars and militarism, conflicts and perception of external threats – but at least as important is the world economic order: which countries are rich, which ones are poor, which ones are developing and aren't and how that system is maintained as well as the truth about rising economic powers like China and its potential to undermine American dominance and the dollar as the reserve currency. 

Ha-Joon Chang is a leading economist known for his sharp critiques of international economic institutions and their defense of neoliberalism. No matter how often it fails, as well as for his advocacy for economic pluralism, he has become quite a growing sensation online with his lectures. 

He's a professor at the SOAS University of London and a former Cambridge lecturer. He's probably best known for his 2002 book, “Kicking Away the Ladder,” which examines how wealthy nations traditionally have blocked economic progress in developing countries. His recent book, “Edible Economics,” from 2022, uses food to explain economic ideas. 

In addition to these topics, we sat down with him last night and he helped us understand the likely implication of Donald Trump's proposed tariffs and protectionism as a basis for his economic policy, as well as the reason basic economic literacy is so important in democracy and how often it is deliberately made inaccessible through things like jargon and excessive statistics and a reliance on all sorts of terms that are designed to keep people away. He has made it a life work to elevate economic literacy. I found the conversation with him very interesting. I think you will as well. 

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The Interview: Ha-Joon Chang

G. Greenwald: Professor Chang, thank you so much for taking the time to come on and talk. One of the reasons we were so interested in having you is we have a lot of conversations now about geopolitics and international relations. So often it focuses on things people can easily understand, things as wars and various types of conflicts. A huge part of geopolitics in the international order is the scheme of wealth – that various countries have or don't have – and has always been. 

A lot of your work has become quite popular. I think “Kicking Away the Ladder,” the 2002 book, is among your best known and, for me, that provides one of the best explanations to understand why some countries are rich and why some are poor and kind of how there's a system to ensure that stays the same. Can you talk about that for people who haven't read that book or are familiar with your work? 

Ha-Joon Chang: Yes, the book was published in 2002, so it's quite a bit old now. But there I was pointing out that this was the high noon of neoliberalism when rich countries were lecturing developing countries “Oh, don't use that stupid things like protectionism, don't use that state-owned enterprises that don't have a government meddle with business.” But then I tried to show that these are actually exactly the policies that the rich countries themselves use in order to get where they are today. Telling the developing countries not to use these policies is like someone using a ladder to climb to the top and kicking the ladder away so that other people cannot follow. 

The most famous and most robust argument for using protectionism is known as the infant industry argument. That argument says the government of a developing nation needs to protect and nurture its young industries until they grow up and compete in the global market. Exactly in the same way that we protect and nurture our children until they grow up and can compete in the adult labor market. Of course, in poor countries, a lot of children work from the age of five or six, but you know, this means that they cannot get educated, they cannot acquire high skills and so on. So, if you can do it, it pays to send these kids to school rather than sending them to work. 

Very interestingly, this logic of infant industry protection was invented by an American and not just any American. He was called Alexander Hamilton, the very first Treasury Secretary of the United States of America. He invented the term “infant industry protection.” Initially, a lot of Americans were not convinced by this, especially people like Thomas Jefferson who said this guy is insane. We can export our cotton and tobacco, of course – I never mentioned the slaves – and import manufactured goods that are cheaper and better – even considering the considerable transportation costs – than what these Yankees can produce. So why should we subsidize these inefficient Yankee manufacturers? 

So, it was initially rejected, but over time the Americans figured out that actually this was what they needed and yeah, from about the 1830s until the Second World War, most of the time over that 120-year period, the United States was the most protectionist country in the world. So, I was revealing this history. It wasn't just the U.S. I mean, Hamilton got his ideas from British practices, Germans later developed Hamilton's theory and used protectionism quite heavily in the late 19th century. The Swedes and later the French and the Japanese and more recently Koreans and Taiwanese and so on. 

So, I was basically pointing out this hypocrisy in which these countries are actually telling developing countries not to use the exact same policies that they used in order to climb to the top. It wasn't just protectionism. It wasn't just tariffs, there were a lot of other policies like the use of state-owned enterprises, strict regulations on foreign investments and other things. So yeah, I mean, that caused a bit of a wave in the international policy debate because developing countries could tell the rich countries, “Look, why are you telling us not to use these policies when these are exactly the policies that you guys used in order to get where you are today?” 

G. Greenwald: You know, it's interesting when you kind of take those principles that you just described, these historical and economic principles, and apply them to specifics, I think sometimes people can see them better in a kind of more modern sense. And one of the things I find so interesting is that you have now a lot of billionaires who became that wealthy because they developed companies in the wake of the internet that became public companies, became very large and successful, who are now essentially insisting that the only way for innovation to happen is to have massive cuts in government spending, even though the internet itself was the byproduct of massive government investment, some of whom will acknowledge that. So, is that the kind of dynamic that you're describing where there's kind of this propaganda that government spending impedes economic growth, whereas so often it's what spurs it? 

Ha-Joon Chang: Yeah, I mean, it's in a way the most obvious in the United States. You know, it wasn't just the internet, but the computer itself, microchips. I mean, these are all financed by the U.S. government, especially the U.S. military: the internet, the GPS system, what makes our modern information economy possible, these were all invented with government money. And there's a reason why Silicon Valley is where it is because this is where a lot of U.S. defense research, specially built around the jet propulsion laboratory, was conducted. And yeah, this is like, once again, people rewriting history in the most convenient way. I mean, they lived on government support in the beginning, and then now that they are bigger and don't need the government as much, although they still need government, the U.S. government is still pouring huge amounts of money into military research, which spills into the civilian industries. I mean, it gives a huge protection in the form of the patent system and copyright system, without which these companies wouldn't have the monopoly they have. So, actually, they still need the government, but of course, they only want protection and not the obligations. So, now they say the government is bad. 

G. Greenwald: Yeah, in fact, most of those companies, not only exploited the technology developed by the government, but continue to rely on massive government contracts, particularly with the military, but with the intelligence, you know, you have Palantir and all these adjacent companies that are on this kind of austerity kick. Everyone needs to lose their benefits, every government agency needs to be cut, except for our massive contracts with the CIA and the Pentagon that are worth many, many billions of dollars. 

The enforcement scheme – you were describing earlier, how rich countries sort of dictate this economic dogma to poor countries, that they know themselves the rich countries aren't what produces growth. The mechanisms by which they do that have been these kinds of international institutions like the World Bank and the IMF. Oftentimes the message is, well, we've fostered this dependency, you're relying on a bunch of our loans and bailouts and, as a condition, we kind of demand that you just cut all services for your citizens and investments in your society. We want to see massive austerity and no more government spending. 

Is that done, do you think, with the intention to maintain these countries in a sort of dependence state, or is it just a misguided but well-intentioned way of trying to help these countries grow? 

Ha-Joon Chang: Yeah, it's a mixture of things, you know, because there is a lot of misguided goodwill. There are people who truly believe that the United States and other rich countries are developed on the basis of free trade and free market; there are economists who believe that government is bad and so on. So yeah, some of it is misguided goodwill. But you have to ask the question, if it's so misguided and has produced terrible results – because the World Bank and IMF programs have basically wiped out economic growth, increased inequalities, and created all sorts of problems in almost all the developing countries where they were involved – then, at that point, you will have to ask: okay, I mean, misguided goodwill or not, if these programs are not working, why do they keep repeating the same thing again and again and again? I mean, maybe you could say that these people are mad. As Einstein said, the definition of madness is repeating the same thing again and again and expecting different results. But it's not madness that they are doing this. They are allowed to repeat these policies that are not working only because they are basically backed by the rich countries, which benefit from this kind of thing. 

G. Greenwald: One of the more interesting disputes that arose in the last decade, it was about a decade ago now, maybe a little more. I don't focus primarily on economic policy or macroeconomics or anything, but I follow the story quite closely when the Greek economy was sort of on the verge of collapse. The Greeks elected a fairly populist, aggressive government that tried to stand up to primarily France and Germany insisting that the Greeks impose a sort of rigid austerity like we were just talking about. The Greeks tried to be very confrontational and resisted and didn't really work out well for Greece in the end. Are there ways that underdeveloped countries that are put into these positions have to defy these institutions or are they pretty much captive to what they're told to do? 

Ha-Joon Chang: Well, yeah, Greece was really crushed by the European Commission, basically France and Germany. I mean, people say that in that episode the IMF was telling the Germans and the French that they were going too far but what happened there was this mistaken belief that the way to revive the economy is to cut government debt, which means cutting spending. The trouble is that when you cut spending, the economy shrinks and the tax revenue falls and, as a result, even while the spending was cut brutally, public debt, as a proportion of GDP, was still rising because GDP itself was shrinking very rapidly. And there was a huge unemployment –especially youth unemployment reached over 40%. So, it was a total disaster.

But there are instances where the countries defied these international institutions [audio failed] …the Asian financial crisis and yeah, instead of signing these austerity agreements with the IMF, Malaysia suspended capital outflow for like a year. And yeah, there was a huge uproar. You know, they said, “Oh, when this ban is lifted, you know, 70, 80 billion dollars will flow out of the country.” But what happened was that because of this ban, because the money couldn't flow out, they stayed and then started doing something, so the economy got revived. When the government lifted the ban one year later, only six or seven billion dollars flowed out, which is a kind of normal amount. 

So, you know, there are these instances. And also, you know, look at the successful economies in East Asia: Japan first and then Korea, Taiwan, now China. I mean, these countries never really followed the advice of the World Bank and the IMF. (laughs) So, the proof is that they're steering you right into your face but apparently, you know, the people refuse to understand it. Was it the Canadian American economist John Kenneth Galbraith who said that if someone's salary depends on not understanding something, you can never make that person understand anything? It might have been often unclear but, basically, these institutions, these governments, they are refusing to accept this reality because it means that they have done wrong, it means that they have to do something that benefits them less. 

G. Greenwald: That is interesting, this emergence of this kind of new economic power based in Asia, obviously led by China. As you might know, our program is based in Brazil. Brazil had for a long time been kind of under the thumb of the United States. It's in what the United States considers its backyard, which is all of South America. But then Brazil became a founding member of the BRICS alliance and the Brazilian president Lula da Silva has said several times now that he wakes up every day dreaming of de-dollarization. Is the emergence of things like BRICS or the attempt to move away from the dollar as the dominant reserve currency potential paths to undermining this system that you're describing? 

Ha-Joon Chang: Yes. Of course, if you zoom out, the history of Capitalism has been a history of domination and resistance and military invasion and colonization, gunboat diplomacy that led to unequal treaties. And so, it's been a constant struggle between different countries and societies that are located in different parts of the global economic hierarchy. 

So, yeah, I mean, in the '60s and '70s, with decolonization, a lot of developing countries that wanted to be kind of independent of the U.S. and European domination, they wanted to be allowed to change their positions in the global economic hierarchy and, yeah, they called for the new international economic order, they organized a non-aligned movement. Unfortunately, all of this was crushed in the '80s and '90s with the third world debt crisis starting with the Mexican [  ] of 1982 and, yeah, especially countries in Latin America and Africa basically kind of being forced to implement these World Bank-IMF policies, which basically created decades of stagnation and social unrest. 

Now, with the recovery from that phase and with the rise of China, with the kind of revival of some of the developing economies in the 21st century, these countries have started demanding a different arrangement. So, there's BRICS, also G20, which was created when rich countries were in big trouble, after the 2008 financial crisis. There has been the creation of new developing country-focused financial institutions, very often led by China, the Asian Infrastructure Bank and the New Development Bank. Yeah, so things are quite different. 

In the '80s and '90s, if you didn't agree with the World Bank, you didn't get money because there was only one bank in town, and it was called the World Bank. Now, there are different banks. Now, there are different countries with slightly different views about development, like, say, South Korea giving foreign aid and China is rising, Brazil is becoming quite assertive and South Africa, in its own way, is trying. So yeah, I mean I think this is a time of great global geopolitical shift. 

But when it comes to dollar dominance, I'm afraid that it's going to be a while before it can be changed because once you become the dominant currency, it gives you so much kind of extra power even without you trying. So, it's very difficult to change that. It has been changed only once with the rise of the U.S., you know, Britain had to see the position of the home of the dominant currency. But even that took decades. And this time around, even with the creation of the euro and the rise of China and so on, it will still take some time before the currency domination can be changed. But in other respects, the World Bank is now almost irrelevant, the IMF is kind of less domineering, [  ] credits changed its practices a little bit, not massively. So yes, I think the world is in a very interesting place. Unfortunately, it means that it can be a very dangerous place because now the Americans and Europeans are desperate to stop China's rise and they are doing a lot of things that could create quite a lot of collateral damage for weaker countries in the process.

G. Greenwald: Your work has become quite popular in various sectors online, as I'm sure you know and one of the viral clips that I saw circulating several times was one where you were talking about how modern-day economic thinking and language are sort of comparable to Catholic theology in the Middle Ages. 

And the thing that I thought of when I heard that was the very first U.S. presidential election that I really paid close attention to – it was in my young adulthood – was the 1992 presidential election where you had the Democrat Bill Clinton and the Republican George H. W. Bush who were in full agreement on the virtues and the sanctity of free trade. And then this was the time of NAFTA and the like. And then you had this third-party candidate who was kind of treated as a crazy person, Ross Perot, a Texas billionaire, who was saying NAFTA will gut out industrial jobs and factories and good paying middle-class lives for Americans. And then, you know, 20 years later, everyone agrees that the major problem is that we have massive deindustrialization, all these towns are shuttered, the middle class has kind of withered. Very prescient. 

At the time I didn't know who was right, but it seems very clear that the NAFTA opponents were. And yet any attempt still, even after all of that, to question the tenets of free trade and the necessity of having full-scale free trade drives people insane like it's some kind of an outrage.

Is that the sort of thing you were talking about with this “Middle Age theology”? And can you kind of expand on what more you mean by that? 

Ha-Joon Chang: Yeah, well, yeah, Ross Perot's giant sucking sound from the South. Yeah, no, no, absolutely. 

Well, it's not just in relation to free trade that economics has become the modern equivalent of Catholic theology in Medieval Europe. I mean, it is basically now a doctrine that justifies the existing social economic order. So, it's basically telling us the world is what it is because it has to be. However, unjust, irrational, or wasteful, you think that it might be the “science of economics” is saying – or in the old days, “the words of God,” especially as interpreted by the Vatican – it is something that you have to accept. 

So that now, you know, I mean, of course, that, you know, in the capitalist economy, economic considerations have always been dominant, but especially in the neoliberal age, when, you know, economic considerations are the ultimate and very often the only logic that you have to accept. I mean, economics has become basically the language of power. 

Of course, when I say economics, I must qualify that. There are different types of economics, you know, not all economists believe in the free market; not all economists think nothing else matters other than the market. But, you know, economics as it is practiced today is like that. Therefore, it has become a very important kind of obstacle to changing the world because it says that this is the best of all possible worlds and that anyone who tries to challenge it is either misguided or has a hidden agenda to enrich himself, empower himself, but really don't care about the rest of the world. 

So, yeah, I'm afraid that it's become like that and to extend the analogy a bit further, you know, economics as it is practiced has become basically impenetrable to ordinary citizens because it uses a huge amount of jargon, lots of mathematics, you know, lots of statistics. And yeah, I mean, ordinary people find it difficult to understand. So, it's become the Latin of the Middle Ages. I mean, it's the language of the ruling class. And if you don't know Latin, you are not even allowed to debate anything and the Vatican made sure that no one other than the priesthood and sons of some very rich people understand the Bible, by preventing the translation of the Bible into vernacular languages. So, later during the Reformation, it became a big deal that the Bible was translated into English, German, French, and so on. Because now it meant that a lot of people could read it. So, yes, I'm afraid that this analogy is not as frivolous as it might seem. 

G. Greenwald: Well, it's interesting, though, because although that's clearly accurate in terms of how economic theory and economic thinking has gone, especially in the West and in these institutions we've been describing, probably even globally, you now have a new American president who ran on a campaign very hostile toward free trade and very favorable to protectionism and tariffs and explained it in a way that enough people could understand it. They voted for him, believing that tariffs would protect American industry, would enable its reemergence, the return of jobs and you have these establishment economic outlets like The Wall Street Journal and those types – the neoliberals and sort of, you know, classic conservative economic dogmatists – who are horrified and outraged by what is coming out of the Trump White House with regard to protectionism and free trade and tariffs. What do you make of his administration's approach to these questions? 

Ha-Joon Chang: Yeah, well, first of all, most of his tariffs are used to get concessions on other things than straightforward economic things, so, the use of the threat of tariffs to Canada and Mexico to kind of intensify their border controls. But insofar as it is used for economic purposes, I think it's very poorly conceived and will backfire most immediately, it is going to increase inflation. Especially if you impose a tariff on Chinese imports, which account for a big proportion of U.S. consumer products, then it will have an immediate inflationary effect. 

I mean, this is why initially he talked about a 100% tariff on Chinese goods, but now it's only 10% because even he and his people know that could spark inflation. But, you know, in the long run, this importation of cheap, good-quality consumer products from China has been one of the most important factors in the modern neoliberal American political economy, because wages have been suppressed for the last 50 years. The U.S. median wage fell from the mid-70s till the mid-90s, and then it started rising again but it recovered to the ‘70s level only a few years ago. And in that story, of course, another important role was played by the ballooning of credit cards and other consumer debts, but the availability of these cheap Chinese goods was very important. 

Now, if you impose a tariff on Chinese goods, you'll have to pay your workers more. How are you going to cope with that? So, it actually could undermine the whole neoliberal economic system. 

Now, he says that this will rebuild the U.S. industry, but I'm afraid it's not going to happen like that, because protection, as in the infant {industry} protection story, protection only creates this space in which improvement can happen and in order for that to happen, companies need to invest, they need to do research and development to innovate, they need to recreate the skill base of the American workforce and so on. And there's no plan to do it through deliberate industrial policies. 

So, he's basically leaving it to American corporations to do it, but then these corporations are actually not interested in rebuilding the economy because the U.S. now has – yeah, this really started in the '80s, but that really came into full being in the 21st century – the U.S. now has a parasitic financial system, which is not interested in long-term investment. 

In the last 25 years, the American stock market sucked out money from corporations rather than putting money in, which is supposed to be their job. Now these companies, in order to satisfy these short-term-oriented shareholders, have to do huge stock buybacks, sometimes borrowing money to do stock buybacks, because they want to do stock buybacks that are bigger than their profits, giving away huge dividends. So, in the last 25 years, 90% to 95% of U.S. corporate profit has been given back to these shareholders. 

So, these companies are like leaky buckets. You create more water by temporarily protecting your economy from foreign competition. These companies get more resources because of that because now they don't have competition, they can charge higher prices and so on. But this money is going to leak out of these corporations. I mean, look at the way that Boeing has been destroyed, all because of this parasitic financial system. 

So, I'm afraid that it's not going to work. It's not to go back to the infant industry analogy, although in the current U.S. case, it's not an infant, it's the revival of an old person. I mean, it's not enough to go to school, the kid has to study. You have to provide incentives and punishment to the kid so that he puts adequate hours and concentration to study. I mean, what Trump is doing now is sending the kid to school, but letting the kid decide what he wants to do. So, when he goes to school, he will skip classes and not concentrate. So yeah, I mean, good luck with the revival of the U.S. industry. I'm afraid I don't see it happening. 

G. Greenwald: I just have a couple more questions. I want to talk about what you just said and what you talked about before in this comparison to Catholic dogma and theology and the like, which is that if you had a set of pieties or orthodoxies in a particular field that was producing positive outcomes, you could almost understand why there weren't a lot of people questioning it or challenging it because it's working. 

Here in economics, especially international finance, you have not just the destruction of jobs and the middle class throughout the West in the United States, but also the 2008 financial crisis, what you were just alluding to, in a lot of ways, that wrecked the economic security and future of a couple of generations of people and countries all over the world. And you would think it would prompt a reexamination of a lot of these unchallenged premises and yet one of the things you describe is this kind of oligopolistic system of economics to prevent these principles from being challenged, I suppose, because they actually have worked well for a certain group of people who have an interest in perpetuating them. But how does that work, this oligopolistic system to preserve these pieties and make sure there's no challenge to them? 

Ha-Joon Chang: Yeah, so the most shocking is how poorly the neoliberal system has performed. I mean, of course, it benefited hugely a tiny group of people at the top. But, you know, compared to the days of the so-called “mixed economy,” the period between the 1950s and '70s, when there was a lot more government regulation, you know, the U.S. was 92% in those days – and there was a lot of strong state involvement in economic development, industrialization, all over the world, not just in developing countries, in the U.S., in Europe. Compared to those days of the so-called mixed economy, neoliberalism has not only produced higher inequality and more social problems, which even many of the advocates of neoliberalism admitted might happen, but it has produced much less growth. In the earlier period, the world economy was growing at about 2.8%. In the last 40 years of neoliberalism, it has been growing at half the rate – 1.4%, 1.5%, both in per capita terms per year. So, if it cannot even produce growth, why do we have this? That's the biggest mystery. 

Of course, those who benefit from it have all the interest in the world to defend it. So, you know, basically, the kind of politicians who support their agenda is more blatant in the U.S. because there's a lot of money flowing around in the U.S. politics legally. In other countries, it's a bit less, but those who have money have a huge influence on government policy, they control the media and they make sure that people are kind of indoctrinated into believing that this is the best of all possible worlds by making sure that the right kind of economists are given the Nobel Prize, the right kind of economists are given faculty positions in top universities, the right kind of economists that write in the financial press and pontificate on what is a good economic policy. And, yeah, above all, they have basically found a trick in diverting people's attention away from economics by creating all kinds of single-issue debates on gun control and abortion and the culture war and wokeism. 

So, yes, I'm afraid that this is why I have been on a personal mission in the last couple of decades to propagate mass economic literacy because in the kind of society we are living in, without everyone knowing at least some economics, democracy is meaningless. It becomes like voting in a talent show. Oh, I like the look of that guy. I mean, he has a beautiful voice or whatever. I mean, that is not about the substance, because those who have power and money do not want people to think about the substance. 

G. Greenwald: Well, with my last question, I'd love to have you back on, because it's been super enlightening, which I expected it to be, but I want to ask you about China. I remember in the 1980s in the United States, or into the 1990s, the overwhelming economic discourse was about fearmongering about Japan and its rising economic power: they're buying all of our buildings, they're taking over our industries, there's no stopping them. Apparently, there was some stopping them, because none of these scenarios that were depicted really happened. 

But now we're hearing the same thing, the same kind of rhetoric, about China – that they're rapidly growing, so fast that they're going to have parity with the United States in terms of purchasing power, they're going to be this unstoppable economic force. There's a lot of talk about them having to be our implacable enemy and at least a Cold War-type competitor or adversary. What do you think from a Western perspective and an American perspective is the right way to understand what one might call the threats or challenges posed by a rising China? 

Ha-Joon Chang: I must declare at the beginning that I'm not a fan of any country. I'm a citizen of South Korea. Korea has been bullied by everyone around us for the last few thousand years, Chinese, Japanese, the Mongols, the Manchus, the Huns, and later Russians and Americans. So, whatever I say about Japan, China, and so on, it's not because I'm particularly fond of or hate that particular country. I hate all the countries equally if you want me to put it that way. (laughter)

The rise of Japan was halted partly because Japan got bullied into opening the financial market and accepting a huge revaluation of the currency in the 1985 Plaza Accord. Once that happened, there was a huge financial bubble, it burst, the Japanese didn't manage the aftermath very well and then the economy went into a permanent kind of depression, and it was seen off in that way. And that happened, well, maybe mainly, if not even partly, because Japan was dependent on the U.S., on the military. When they lost the Pacific War, they were forced to sign this constitution which prevented it from having a sizable army and then the U.S. military is stationed in Japan. 

So, in that sense, even though it was rising economically, [Japan’s] political position was subordinate to that of the U.S. China doesn't have that problem. And actually, from China's point of view, the U.S. is the aggressor because basically China is surrounded by U.S. navy and army bases, almost all across this South border, except the one they did with Russia. You have the U.S. army stationed in South Korea, as well as the air forces; the South China Sea is kind of covered with U.S. Navy presence and you name it. 

So, China is not going to play that game that Japan had to play. So, it's not going to accept financial liberalization, which is the easiest way to undermine the rising economy because China does not have the kind of financial power, and I'm not just talking about money, but the financial institutions and the skills that people who work in the financial industry has and so on, that you can mobilize to fight the American financial power. Whereas you can and it is fighting the American power in terms of production and international trade and so on. 

My prediction is that China will not play that game, which means a big problem for the U.S. because first of all, it's not as if this is, as some people argue, the second Cold War. In the real Cold War, there was no real economic relationship between the Soviet bloc and the U.S. bloc. This time, China and the U.S., these economies are deeply intertwined. China is the biggest trading partner with the U.S. after the EU and the NAFTA countries. I mean, it owns 13% of the U.S. Treasury bills. As I mentioned earlier, the role as a source of affordable, good-quality consumer goods is very, very critical to the American political economy. 

So, the U.S. cannot push it around in the way that it could with Japan. More importantly, what the U.S. has been doing in the last several years – and this is not just Trump, I mean, even from the days of Obama, but more clearly, Biden – it has been actually pushing China into catching up faster. With all these restrictions on the high-grade microchips and key technologies, China – they say this is the model of invention – China has come up with these ways of doing the same things with less resources and lower technologies. 

So, when Biden made the Dutch companies and German companies export lithographic machines that make the circuit board for semiconductors, Americans thought, well, now this will make it impossible for the Chinese to have the latest microchips but, lo and behold, within a couple of years, it found a way to make the latest seven-nanometer chips without using the latest machines from the Dutch and the Germans. I mean, lately, this Chinese AI company DeepSeek has kind of created an economic earthquake by creating an AI with a fraction of the cost that American companies are using. 

So, I mean, if the U.S. really wanted to push back China, it should have started 20 years ago. Now it's too close. Putting more pressure on China will – not necessarily, but most likely – bring forward a day when it catches up with the United States and the rest of the world. This is why the U.S. and the EU are panicking and breaking all the rules of the WTO and other international institutions that they were so insistent on upholding because now they are desperate to [ ] China. But without a coherent industrial strategy and without reforming the leaky parasitic financial system, I'm afraid that they are not going to be able to do that. 

G. Greenwald: All right, Professor Chang, it's always good to have one's economic literacy raised and in the spirit of doing that we will show everybody who's watching where they can follow your work. We really appreciate you're taking the time to talk to us. We'd love to have you back on as well. Thank you so much.

Ha-Joon Chang: Thank you.

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Rumble & Truth Social Sue Brazil’s Chief Censor Moraes in US Court; DC Establishment Melts Down Over Trump's Ukraine Policy
System Update #409

The following is an abridged transcript from System Update’s most recent episode. You can watch the full episode on Rumble or listen to it in podcast form on Apple, Spotify, or any other major podcast provider.

System Update is an independent show free to all viewers and listeners, but that wouldn’t be possible without our loyal supporters. To keep the show free for everyone, please consider joining our Locals, where we host our members-only aftershow, publish exclusive articles, release these transcripts, and so much more!

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There were two main segments on this episode:

First, we discussed the lawsuit filed by Donald Trump’s media company – which owns his social media site Truth Social – jointly with this platform, Rumble, against Brazil’s notorious chief censor, Supreme Court Justice Alexandre de Moraes. 

We were the ones who broke this story on the front page of Brazil’s largest newspaper this morning – Folha de São Paulo – and we’ll explain the story’s significance and its implications for a free internet. 

Tthen: President Trump significantly escalated his rhetoric against the West’s long-time darling – Ukrainian president Volodymyr Zelenskyy – after Zelenskyy made critical comments about Trump, which in turn followed Trump's endorsement of the need for elections in Ukraine. After all, if you're fighting a war in defense of democracy, that country you're defending probably should have elections. Instead, Trump slammed Zelenskyy as a “modestly successful comedian” who “talked the U.S. into spending $350 billion for a war that couldn’t be won,”. He also accused Zelenskyy of presiding over missing money in Kiev and suffering from deep disapproval among his own people, labeling him, “a dictator without elections.” All of that was in the context of Trump's arguing that the war must end – not only for the sake of the United States but also for the Ukrainian people. 

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We have reported many times on the increasingly repressive censorship regime imposed by not just the Brazilian government, but more so by a single judge on the Brazilian court. It’s something we've covered for lots of different reasons, including the fact that your free speech rights, if you're in the United States, are absolutely affected and threatened whenever censorship regimes are imposed and accepted in parts of the democratic world. They become the new bar that other countries can then hurdle over. We've seen that many times. There have been extreme examples of this in Brazil, including the banning of X, forcing them to comply with and obey every censorship order issued by a single judge. And it's just so extreme. 

Now, as you probably know, Rumble had operated in Brazil for a long time and began receiving this tsunami of censorship orders demanding that they close the accounts or block accounts of a whole long list of people, one after the next, always in secret court orders with no due process, no trial, no notice to the other person being censored. Rumble began complying but then got to the point where they said, “We created our site to be a site that defends free speech. We're not going to sit here and unjustly censor” and so Rumble decided that they would not be available in Brazil rather than comply with unjust censorship orders. 

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Germany's Repressive Speech Crackdown Intensifies | U.S. & Russia Meet in Saudi Arabia and Open Cooperation | Plus: An Amazing Hate Crime in Florida is Buried
System Update #408

The following is an abridged transcript from System Update’s most recent episode. You can watch the full episode on Rumble or listen to it in podcast form on Apple, Spotify, or any other major podcast provider.

System Update is an independent show free to all viewers and listeners, but that wouldn’t be possible without our loyal supporters. To keep the show free for everyone, please consider joining our Locals, where we host our members-only aftershow, publish exclusive articles, release these transcripts, and so much more!

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First: The German-based journalist, James Jackson, has been covering free speech attacks in Germany extensively and he will be here with us tonight to explain all of them. 

Then: Several top national security officials of the Trump administration – including Secretary of State Marco Rubio and Trump envoy, Steve Witkoff – met today in Saudi Arabia with senior Russian officials including Foreign Minister Sergey Lavrov. It was the first real dialogue between high-level officials of both countries – by the way, the world’s two largest nuclear superpowers – that took place in many years and there is every reason to celebrate even, indeed, – to breathe a sigh of relief – over the fact these two countries are now agreeing to maintain open dialog and work together, cooperatively, not only to end the devastating war in Ukraine but on numerous issues of common interest beyond Ukraine as well. 

Plus: there was a bizarre and extraordinary hate crime that took place in Miami over the weekend that you likely heard very little about. A Jewish American man who identifies as an ardent Zionist shot and tried to kill two people solely because he thought they were Palestinian. The two men he shot were actually Israeli. 

For their part, the two victims also mistook the ethnic background of their shooter: they announced on social media that he was Arab and that he tried to kill them just for being Israelis and then added on their social media accounts, “Death to Arabs.” 

There's a lot to say about this incident, especially the reaction to it or, more accurately, the very subdued lack of reaction.

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The interview: James Jackson

The issue on which our show has mostly focused over the last year or so has been the relentless assault on free speech after October 7. It resulted in all sorts of executive orders in the U.S., purporting to ban criticism of Israel or activism against it, the shutting of pro-Palestinian groups on campuses and even the shutting of TikTok as one very prominent senator admitted over the weekend: the true impetus for shutting down TikTok in the United States was that it was perceived to permit too many criticisms of Israel. 

Meanwhile, throughout Europe, the targeting of Israel critics and pro-Palestinian activists, particularly people engaged in activism against the Israeli war in Gaza, has been even more severe. While it's taken place throughout Europe, undoubtedly the country where it has been most extreme is Germany, which has furnished immense amounts of arms to Israel that it used to bomb and destroy Gaza and therefore has a very intent motive to prevent anyone from claiming that those are war crimes or genocide because it would make Germany complicit – a strain Vice-President JD Vance did not mention when criticizing Europe for the attacks on free speech at the Munich Security Conference, last week. 

James Jackson is an independent journalist and broadcaster from the United Kingdom who is based in Berlin. He hosts Mad in Germany, a current affairs podcast. He has previously covered news, business and culture in Germany and Central and Eastern Europe for publications like the BBC, Sunday Times, and Time Magazine. He has really become one of my top two or three go-to sources for understanding events in Germany, particularly these assaults on free speech. We are delighted to welcome him to his debut appearance on System Update. 

 

G. Greenwald: James, it's great to see you. Thanks so much for taking the time to talk to us. I know it's late there. 

James Jackson: Hi Glenn. Thanks so much for having me on here. You know, long-time reader and follower of yours. So, really great that you've picked up the free speech cause in Germany particularly because it's not something that has got very much attention until, of course, the vice president of the United States and “60 Minutes” as well brought it to the world's attention. But it's been something I've been trying to get the message out on for a while. So, I'm happy that it's gone global, but as you said, the most egregious attack on free speech JD Vance did not mention and that is the assault in Israel. I think we understand why, you know, politics plays a very important role in this. 

G. Greenwald: Right, sometimes politicians do constructive or positive acts or take constructive and positive steps even if it's always not for the best motives. And who knows, you know, JD Vance is politically constrained. I've never heard him defend or demand censorship of pro-Palestinian activism but in any event, he certainly did end up generating a lot more attention to this issue. 

I want to just step back from current events taking place in Germany which we'll get to in a minute including what happened today at this film festival. I think one of the very first articles I ever wrote when I became a journalist or a blogger back in 2005, 2006, was precisely about the fact that there is a vastly different tradition in Western Europe when it comes to perceptions of free speech than there is in the United States. One of the few unifying views in the United States was, at least until recently, the idea that even the most horrendous political views are permitted to be expressed. The state can't punish you for them. And I remember what prompted my article was a conviction in Austria of the British historian David Irving for having engaged in revisionism and denial of the Holocaust. He was criminally convicted and sentenced to a prison term. I essentially wrote that these things are unimaginable in the United States but they're common in Europe and in Germany in particular. After World War II, you could even say, for understandable reasons, there emerged these restrictions on speech particularly when it came to denying the reality of the Holocaust, its magnitude, trying to revise what happened, as well as praise for Adolf Hitler and the Nazi party and the Nazi ideology. And so, you started off with this kind of exception to free speech justified by these extreme events of World War II and they've obviously, as we're seeing now, have expanded aggressively as censorship usually does. That's its trajectory. It starts off justified by some extreme event that people can get on board with and then before you know it, it's a power that is being used all over the place. 

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