Glenn Greenwald
Politics • Writing • Culture
Everyone Condemns Big Tech—Who Is Fighting It? DOJ/Google, Crowder/Shapiro, Brazil, & Mor
Video Transcript: System Update Episode #28
January 26, 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 25, 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 #28 Here on Rumble.

Many people in politics and journalism love to tell how angry they are at Big Tech, how much contempt they harbor for it, and how devoted they are to subverting, weakening, and undermining it. And while some of them do mean that, many of them do not. When everyone is watching and the cameras are rolling, they strut around posturing as threatening and menacing enemies of Big Tech but when the cameras are off and nobody is looking, many of them suddenly lose interest in what they are claiming is such a passionate cause for them, while others do something much more cynical, and more destructive: they work to fortify and benefit from the very system of Big Tech they claim to despise. 

This is a topic that can lend itself to moral posturing, sanctimony, and hectoring but I think it's both too nuanced and too important to lose time with any of that. We’re going to try and do our best to examine what is actually a challenging and an interesting question: faced with a very small group of corporate giants who have used anti-competitive practices to make themselves virtually unchallengeable and inescapable, how can one shrewdly subvert their power without sacrificing one's integrity, or, worse, cynically exploiting the sincere anger of the public toward Big Tech for one's own personal aggrandizement? 

We'll use several recent stories in the news – including the ugly and vitriolic dispute between YouTuber Steven Crowder and Ben Shapiro's Daily Wire, The filing of a new lawsuit yesterday by the Biden DOJ against Google, Rumble’s various battles against Big Tech censorship, and the growing censorship crisis in Brazil – to understand who those are who are attempting to foster free speech on the Internet and who is fraudulently pretending to do so.

For now, welcome to a new episode of System Update starting right now. 


Monologue:

One of the easiest and surest ways to win applause in right-wing media and political circles is to raise your fist in condemnation of Big Tech. Indeed, along with the Deep State and left-wing cultural dogma, Big Tech has, for good reasons, become such a consensus villain for conservatives that expressing contempt for it is virtually a prerequisite for acceptance in right-wing politics. That's not a surprise, since polls show that 80% of conservative Republicans believe Big Tech is in fact biased against them and favors liberal views. 

But as we all learned at a very young age, actions speak louder than words, and that's because words are easy and actions are much harder. Put another way, words can have an impact but are generally harmless. Actions, however, can subvert, and disrupt, and transform and overthrow. And that's why they're much more important than words are now.

Corporate lobbyists in Washington certainly understand the difference between words and actions. They know, for instance, that in order for Democratic Party politicians to have any chance to win elections – especially Democratic Party primaries, but increasingly general elections as well – it's necessary for Democrats like Hillary Clinton or Chuck Schumer and Nancy Pelosi to rail against the evils of Wall Street and vow to attack structural income and wealth inequality if they win, and even go after Wall Street tycoons and finally hold them accountable. 

And that is why we so often see what looks to be a paradox, namely that Democratic politicians, like Joe Biden, who rage against the Wall Street machine and pound their fists on the table in anger over the unfairness of income inequality and large corporate bonuses, nonetheless, end up drowning in campaign cash from Wall Street and their lobbyists, far more so than their opponents. That's because Wall Street lobbyists are sophisticated enough to know that Democrats – when their foreheads bulge with anger on the campaign trail, as they scream about the wretched corruption of banks – do not actually mean a word of what they're saying. 

Both Democrats and their corporate donors know that this is all theater, designed to trick voters into voting for them so that they can then acquire power and use that power to serve the interests of the Wall Street barons they pretend to loathe. It's all a game. Everyone inside the Beltway understands the game; the marks are the voters. 

This deceitful game is by no means confined to Democratic politicians or politicians generally. Many companies, media personalities, and government agencies love to drape themselves in the costumes of popular values or causes that they do not actually support and sometimes actively oppose and despise. And that is definitely true of vocal opposition to Big Tech, opposition that produces great benefits to those who express it  – votes for politicians, clicks and subscriptions, and advertising dollars for media companies – yet are often accompanied either by total inaction or, worse, by fortifying Big Tech’s structures when nobody is looking. 

I don't want to pretend that this is always a clean and easy issue. When I left The Intercept, I decided that I would only work with and bring my audience to platforms that I believe are truly devoted to creating free speech zones on the Internet and defining and fighting against various pressures and even legal coercion to censor unpopular and anti-establishment voices offline – which is why I've spent the last two years publishing my written journalism at Substack, my video broadcast exclusively on Rumble and my podcasts on the Callin app. 

But I realize not everyone has the same luxury that I have. I've spent 15 years or so building a large and portable audience that will read or watch my journalism wherever I go. But for younger journalists or commentators just starting out and trying to make their way, I completely understand that compromises are sometimes necessary. 

Indeed, the crux of the Big Tech problem is that they are – according to the official position of the House Antitrust Subcommittee – monopolies in the classic and legal sense of that word. That means, by definition, that Big Tech corporations engage in anti-competitive practices, making it all but impossible for any competitors to emerge.

That also means that they have the power to unify, to crush any competitors that begin challenging their hegemony – as we saw them do quite brazenly back in January 2021, when the Free Speech app Parler – remember them? – became the number-one most downloaded app in the country – ahead of TikTok, YouTube, Facebook, and Instagram – following the banning of the sitting president, Donald Trump, by Twitter and Facebook, only for Democratic politicians to quickly demand that Apple and Google remove Parler from its stores, which had the effect of crippling Parler by preventing new users and impeding functionality for existing users by making updates impossible, followed by Amazon's refusal and rejection of the platform from their dominant hosting services. So within 48 hours, Parler went from being the most downloaded app in the country to barely existing on life support, and it never really recovered. If that didn't illustrate to you the virtually unchallengeable dominance and hegemony of Big Tech, I can't imagine what would. 

All of this also means that it is close to impossible to find an audience, a new audience in particular, without in some way using Big Tech’s platforms. So even though I was able to make the choice to only work with and for free speech alternatives to Big Tech, I still use Big Tech to promote the journalism we do. I use Twitter to make myself heard and ensure I can influence political conversations. And since we launched our new show, this show, last month, we have used and continue to use all Big Tech platforms – Facebook, Google's YouTube, Twitter, Facebook, and Instagram – to promote the show in the hopes of reaching new viewers, which is one of the goals of this show. So, as devoted as I am to this cause of free speech and crushing Big Tech's power to censor political speech off the Internet – and that cause is, if not my overarching cause, certainly one of my primary ones – it would be close to impossible for me to avoid Big Tech platforms entirely if I want to have any actual impact on our politics of our country, and the broader political and cultural conversation. 

And if that's true for someone like myself, who has been able to build one of the most independent and reliable independent media platforms in the country, it's certainly true of others who are younger, less established, and still looking for ways to bring attention to their work. So I appreciate the nuances of these challenges and don't intend to approach this with a posture of sanctimonious  hectoring, or moral superiority. I believe everyone should be expected to act with integrity in accordance with their stated principles. That's for sure. But complete purity is a luxury reserved for poets and artists or those who are born into great familial wealth. And even for that lofty group, a type of fanatical purity would still make it close to impossible to be heard in our current politics. 

But while recognizing those intricacies, I think it's important to nonetheless examine who is cynically exploiting the cause of liberating us from Big Tech and reconstructing the Internet as a venue where free speech and free inquiry can flourish. And while most cases may be borderline or morally ambiguous, some are not. 

Let's take the case of Congressman Jim Jordan, of Ohio, who is one of the most talented speakers and most skilled rhetorical advocates in all of Congress. When Congressman Jordan goes on Fox News or speaks before the crowds of the conservative and MAGA faithful, few can rile them up as he can. He rolls up his sleeves, he gets very angry and very vocal and very passionate. He's easily one of the five most powerful and influential members of the House Republican Caucus, in part because of his defiant and aggressive anti-Big Tech posture that he loves to show and is so good at expressing. But in larger part because of his great skill at raising huge amounts of corporate cash that fuels the Republican machine. And that professed cause of his – fighting Big Tech – is often directly at odds with the base of his power inside Congress, namely his prowess at raising large amounts of corporate cash. 

But how has Jim Jordan used this great power inside Congress to advance what he claims is his passionate cause of fighting Big Tech? If you ask those whose specialty is working on anti-Big Tech legislation – as I have – they will struggle to give you an answer. 

And while it's tempting to say that they're just doing nothing, that's actually not true. They are doing something. People like Jim Jordan are protecting Big Tech and obstructing any actual meaningful reforms. Along with newly elected House Speaker Kevin McCarthy, Jordan has repeatedly opposed bipartisan antitrust proposals that are designed to solve the problem of Big Tech's power to censor. In 2021, when Congress released its report declaring those four Big Tech companies – Amazon, Apple, Google, and Facebook – to be monopolies, and a package of bills after a year-long investigation into all of those companies and how they legally maintain their monopolies, what was Jim Jordan's response? Mr. anti-Big Tech filed a dissenting view to that report.

And last September, he opposed a bill that would increase the fees these companies have to pay when they file for a merger with the government. Now, time and again, anti-Big Tech politicians like Jordan not only fail to hold Big Tech accountable, but they also actually do Big Tech's bidding – in the backrooms and the sewers of Congress, and the places Donald Trump denounced as the Swamp, when the cameras are off and his base is at work and nobody is looking and he's there only with Google and Facebook lobbyists who have their checkbook out ready to reward subservience to those companies interests. 

And there is nothing particularly complex or morally ambiguous about that kind of deceit. It is exploitative, condescending to voters, and deeply cynical in all of the worst ways. There are, though, other instances that I think raise more ambiguities that I want to look at, especially recent developments in the news that help us better understand how the cause of Big Tech is being exploited by some and pursued with authenticity by others. 

Just this week, the Department of Justice, the Biden Department of Justice, filed a lawsuit aimed at one company, Google, that is designed to dismantle Google's ability to crush the competition by using its various platforms, particularly its online advertising dominance, in order to basically manipulate the entire industry. 

Here from the Washington Post, you see the headline “Justice Department Sues Google Over Dominance in Online Advertising”. And the article reports: 

The lawsuit, the second federal case pending against the search giant, alleges that the company's core ad business should be broken up because Google allegedly used its dominant position in the online ad industry to box out competitors. By neutralizing rivals and forcing publishers to use its products, Google was able to dictate the rules of the marketplace for online ads, the lawsuit says (The Washington Post. Jan.24, 2023).

The suit alleges that Google engaged in a “systematic campaign” to gain a grip on the high-tech tools that publishers, advertisers, and brokers use to buy and sell digital advertising. Now, I know this sounds technical, but this is vital to understanding Big Tech's stranglehold on our politics and our economy. 

Having inserted itself into all aspects of the digital advertising marketplace, Google has used anticompetitive, exclusionary, and unlawful means to eliminate or severely diminish any threat to its dominance over digital advertising technologies”, the lawsuit says. Google has used its control over the ad market to harm its rivals, resulting in a “broken” advertising market in which website creators earn less and advertisers pay more, the Justice Department says (The Washington Post. Jan.24, 2023).

That's a pure distortion of a free market when one company can use its dominance to render basically how much money people make and how much money they can charge. The article goes on. 

This also affects consumers because when publishers make less money from advertising, they have to charge people, through subscriptions, paywalls, and other forms of monetization, the lawsuit claims. […] The suit adds to Google's mounting legal challenges; the company is already fending off a separate federal antitrust lawsuit that was filed in the fall of 2020 during the Trump administration. That suit, which is focused on Google search results, is scheduled to go to trial this year. Google also faces multiple antitrust lawsuits led by state attorneys general. […]

Biden has signaled his intention to take on Big Tech's power, in part by appointing tech critics Lina Khan and Jonathan Kanter as head of the Federal Trade Commission and chief of the Justice Department's Antitrust Division, respectively.

 

Under Khan, the FTC has been increasingly active in challenging mergers in the tech industry. The agency last month brought a challenge against Microsoft's acquisition of the game developer Activision, and it also argued in a California courtroom against Meta's acquisition of a virtual reality startup. […] The Justice Department, under Attorney General Merrick Garland, has several antitrust losses in its first year but more recently has notched a string of high-profile victories, including a court ruling that blocked the merger of two powerful book publishers. […] Yet antitrust enforcers continue to face an uphill battle in a court system that has taken an increasingly narrow view of competition law (The Washington Post. Jan.24, 2023).

Now, let's stop there for a second because there are some very important issues lurking within this. I don't think I need to prove my bona fides as a vehement critic of the Biden administration, it is something I do virtually on a daily basis and have done since the very start of the Biden administration. But this is actually one area in which the Biden administration seems genuine about its commitment to a cause that has become increasingly popular among the American right, namely reining in the virtually uncontrolled power of Big Tech. And as a result, after a lot of skepticism, these two people in particular, the head of the DOJ antitrust Division that just brought this lawsuit against Google, and Lina Khan, the very serious scholarly head of the Federal Trade Commission, have gained a lot of support among Republican members of Congress who began skeptical of what their intentions were, for reasons I completely understand. Many Democrats want to weaken Big Tech or threaten to weaken Big Tech for only one reason: to gain leverage in order to influence or coerce them to censor the Internet in favor of the Democratic Party by censoring content that dissents from Democratic Party orthodoxy or censoring voices who oppose Democratic Party politics.

And so there was good reason for Republican skepticism about the motives or the interests behind some of these antitrust actions. But serious Republicans in Congress, conservatives in Congress, like Congressman Ken Buck, who was the ranking member of the House Antitrust Committee – that issued that report, declaring those four companies a monopoly, and it was now, I think, poised to become the chair of that subcommittee – has become an ally of Senator Amy Klobuchar in the Senate with her bipartisan bill that I referenced last night to break up the power of some of these companies, legislation that has attracted the support of real conservatives in the Senate, including Josh Hawley, of Missouri, and Chuck Grassley, of Iowa, and Ted Cruz, of Texas. 

So, you see this bipartisan trans-ideological coalition forming over what is, I think, a very serious effort to rein in the power of Big Tech, because people realize, regardless of where they fall in the political spectrum, that having giants of this limitless power able to basically run roughshod over all competitors, to do whatever they want with no limits of any kind, is incompatible with having a healthy democracy. And perhaps people who are conservative are more angry about this because of the censorship issue, and people who are Democrats are more angry because of the economic antitrust issues but, at the end of the day, the core premise is a shared one, which is that we cannot have these companies any longer, three or four of them, utterly dominating one of the most important human innovations in decades, if not centuries, which is the Internet.

The stranglehold that gives them over every aspect of our civic life is far too excessive. And that's where a lot of this is coming from, from a genuine conviction that these companies need to be reined in. And yet, as I said, there are still Republicans in the House, in particular like Jim Jordan, who continue to talk a good game. He probably wouldn't disagree with a word I've said so far, except for that little part where I accused him of being a fraud but, other than that, he would endorse all of the things I've said about Big Tech, and yet he has nothing to show for it. He has nothing to show for it, like so many of the conservatives in Congress with him, because they are exploiting their base and their voters, knowing that many of you hate Big Tech and that you'll donate every time they go on Fox and rail against it or speak about it at a rally. But then their real allies are not you but Google and Facebook lobbyists and they are there to block and impede both regulatory and legislative attempts to rein in the power of Big Tech. That does not mean that there are never valid reasons for questioning some of these attempts to rein in Big Tech.

I understand that in conservative politics, antitrust legislation is not always a consensus and popular view, but it is a consensus view among Republicans and conservatives if you look at polling data, that people believe that the power of Big Tech is wildly and aggressively excessive and needs to be reined in. And there are genuine efforts that are serious and based in a genuine conviction that Big Tech is too excessive and needs to be reined in. And a lot more could be done in this realm if it weren't for, on the one hand, liberals in Congress whose only interest is exploiting these measures to influence Big Tech to censor more, and then, on the other, conservatives who have a much greater interest in receiving checks from Google and Facebook and Apple and Amazon than they do serving the cause that they claim to their base they really believe in. That's the reality of what's taking place here. 

Let's move to the next graphic from July. So just six months ago, when I was at Substack, we reported on an important case, the one that was brought by Rumble against Google. And this is the perfect example of how anti-competitive practices work. I mentioned this last night. Remember last night's show? We talked about how every time there's an attempt to rein in Big Tech power legislatively or through regulation or through lawsuits, the people who are the first to pop up and protect Big Tech and demand that nothing be done is the U.S. Security State, led by James Clapper and people like Fran Townsend and the rest of that whole crew, Mike Morrell, CIA directors and homeland security advisers who understand that keeping Big Tech hegemonic and monopolistic is crucial to their agenda of ensuring the flow of information stay within their stranglehold, within their control, so that the only things you hear are things they want you to hear, and none of the things they don't want you to hear become available to you. 

And one of the companies that is on board with the same effort that I just explained from The Washington Post is being pursued by the Biden Justice Department, to their credit, is this very platform right here, which is Rumble, which is one of the reasons I've decided to be on this platform instead of others. Now, before I explain this lawsuit and its importance, I want to just be very upfront and transparent about my relationship with Rumble. Because if I'm going to talk about Rumble, I think you quite rightly want to know what my interest might be.

So, to begin with, I have no ownership of any kind of Rumble. I have no stock on Rumble and no stock options on Rumble, under no conceivable theory do I benefit financially if Rumble does well financially. My only relationship with Rumble is that I have a show on Rumble, a nightly Show, the one you're watching, that they pay for me to produce, in a contract that we signed about six months ago. I had a contract with them previously, a much smaller one, to produce two or three videos per month. And in all contracts that I've ever signed with any media company, including The Intercept, the one that I founded, or any other company with which I've ever worked, including Rumble, I always have a guarantee of absolute editorial freedom, by which I mean that nobody can review my show before it airs.

Nobody has the power to come to me after and tell me they dislike their content. It's a guaranteed multi-year contract, which means that even if I decided for whatever reason to devote my program every single night to doing nothing but trying to convince you that Rumble is evil, Rumble has no way out of the contract. They can't stop paying me. They can't cancel my show no matter what it is that I do or say. Their ability to get out of that contract is extremely limited. It's limited to things like my death or my conviction of felony charges, and that's pretty much it.

So, Rumble has zero leverage over me in terms of anything that I can say, and we even talked about how, it will probably be the case, in the future, that Rumble will do things that I disagree with and dislike, and I will likely denounce them and they want me to because that demonstrates that their commitment to free speech is a genuine one. They want criticisms of their conduct as a company to be heard on their very platform, including by the people with whom they have the most significant contractual relationship such as myself. So that's my only incentive scheme. I have no incentive when it comes to Rumble, when I'm reporting on them, when I'm talking about them to do anything other than tell you the truth, I don't benefit if I praise them; I don't suffer if I criticize them. 

But in this lawsuit that we reported on, in July of 2022, Rumble sued Google, claiming antitrust violations similar to the one the Trump Justice Department raised back in 2020. So, let's be clear about that. It's not just the Biden DOJ suing Google and other Big Tech companies for antitrust violations. A very similar suit was also brought by the Trump DOJ relating to the way that they manipulate their search terms to destroy competitors. And the theory of the Rumble lawsuit is one that I have discovered personally is unquestionably true, which is that one of the things that Google does is that, if you are a competitor of Google's, not in terms of their search engine, but in terms of any of their many businesses, including their ownership of YouTube, they will make sure that you are buried. And given that something like 90 or 93% of all people who search on the Internet use Google, that dominance is incredibly powerful. They can bury you if they want to. Can any of you even name alternatives or competitors to Google Search engine? Just like maybe Yahoo still has theirs? I'm not even sure. Bing? But Google is essentially the only game in town. So, if they decide to bury you, it's going to be very hard for you to thrive and exist. 

And there is no question that they bury Rumble's videos on purpose. Why? Because Rumble is a competitor to their other platform, which is YouTube. I've encouraged you before if you want to find one of my videos, even ones that have millions of views and there are several that do, go to a Google search engine and enter the topic with my name and video. And oftentimes what will appear as the first, second, and third results are copies of my show that people without permission posted on YouTube, or excerpts of it, that maybe have six or seven or eight views, and you have to go to the second or the third or the fourth page to find my video on Rumble if you can even find it at all.

There have been times when I even know the exact title of the video, the show that I’m looking for, on Google, and yet I can barely find it. So, the theory of this lawsuit, which is that Google exploits its dominance, its market dominance, to destroy its competitors, is one that I personally know to be true. And that's why a court refused to dismiss Rumble’s lawsuit against Google, ensuring that Rumble now has the right to a very vast discovery about how Google manipulates its algorithms and its search engine and things. It should be very illuminating on this topic. But this is an example. Rumble spending its own money to sue Google for antitrust violations, or Trump and the Biden Justice Department suing Google, a very powerful company, to me are examples of genuine attempts to subvert and undermine Big Tech censorship and Big Tech monopolistic power, as opposed to the posturing that certain Republican members of Congress like Jim Jordan do. 

Now, let's look at the recent controversy that became very ugly and vitriolic but is, nonetheless, lurking within. It contains some really interesting points about this exact question, which is the controversy I'm sure you've heard, most of you, that arose between the very popular YouTuber Steven Crowder, who also has a show on this platform on Rumble, and Ben Shapiro's company, Daily Wire, which has become a remarkable success as a new right-wing media company. 

And what I really want to do is steadfastly avoid almost every single component of this dispute, many of which are personal, many of which became very ugly, involving things like people tape-recording each other without their authorization, particularly Stephen Crowder doing that to a Daily Wire executive, a bunch of allegations back and forth over ethics and other things. I also want to avoid the question of whether Steven Crowder is worth $50 million, or whether the Daily Wire really offered him a $50 million contract. All of those things are kind of interesting, in part, because they say a lot about independent media and the financial components of how independent media works. Also, all of us love drama, let's be honest. So, there are a lot of personality conflicts there that I just don't want to take my show's time to devote to and I don't think it's a good use of your time. 

So here are the key facts. Let's bring up the Forbes article from January 20, 2023. “Right-Wing Pundits Ben Shapiro and Steven Crowder Clash Over $50 Million Media Deal”. And I know a lot of you are thinking, why should I care about very rich conservative commentators fighting over a $50 million deal? And that's not an unreasonable position. But let's look at what the actual dispute was. 

In a video posted online this week, Crowder said that some outlets were “in bed with” tech companies and were colluding to ultimately monetize and censor right-wing views on social media platforms, though he didn't name any outlets specifically. […] Crowder also showed excerpts of a contract from one company – later confirmed to be The Daily Wire with the compensation penalizations if his programming faced loss of advertising revenue, including from advertiser boycotts, or if Crowder's channels were demonetized by social media platforms (Forbes. Jan, 20, 2023). 

So let me just stop here and just reduce this to its simplest terms. Well, obviously, Steven Crowder and The Daily Wire, as right-wing outlets and pundits are both vehemently hostile toward Big Tech. They denounce it with great regularity. They argue that Big Tech poses a grave threat to our national discourse and to our right to free speech as a result of their censorship.

And yet, says Steven Crowder, when The Daily Wire sent me a term sheet contained within in – it was a very generous offer – but it specifically says that if I am to be demonetized by YouTube or otherwise de-platformed or penalized by other Big Tech companies such as Facebook and Twitter and Instagram, I will end up being penalized significant amounts of penalties as a result of my following outside of the lines of Big Tech.

And Stephen Crowder's argument is that what The Daily Wire's essentially doing is, on the one hand, telling their viewers and their subscribers that they're not just a business but a cause, and one of their main causes is fighting against Big Tech and trying to subvert Big Tech by creating an independent and self-sustaining media ecosystem that is independent of Big Tech and, therefore, guarantees free speech. But then, on the other hand, as they say, they're sending around contracts requiring their commentators to obey the limits imposed by Big Tech on what they can and can't say because if you step outside of those lines, you will be punished, which is another way of saying that The Daily Wire, it’s Stephen Crowder's argument, while pretending to its audience that they're subverting Big Tech, in fact, instead, is doing the opposite in order to profit as much as possible, which is fortifying Big Tech's power by telling all of their commentators, you had better obey the limits they impose on you or else you will lose huge amounts of revenue.

So, let's look at Steven Crowder himself. He went on the show hosted by Tim Pool, where he talked about what he claims was his primary motive in essentially blowing the whistle on what he says he regards as deceit within conservative media when it comes to whether or not they're really opposed to Big Tech as they tell their viewers or whether they're in bed with them. Let's take a look at a couple of clips: 

(VIDEO  46:41)

Steven Crowder: I said this is wrong, penalizing conservatives and I believe this to my absolute core, penalizing conservatives on behalf of Big Tech while taking money from people who are paying you, investing in you to fight Big Tech – That is what they're investing in. That is what Mug Club is investing in and that's what subscribers are investing in – while simultaneously penalizing consumers as fundamentally wrong. I had that conversation, and said, Look, just please give me your word you're not going to be doing this with other people who, as you well know, when you start in this industry, don't know better. 

Ok. So, he's basically saying, look, I don't even care about myself anymore. I don't want their $50 million. What I really want is for them to give me assurances that they won't do this to anyone else, that they won't do this to younger people. They will continue to fortify Big Tech's power of censorship by giving out contracts that highly incentivize people to obey Big Tech limitations. I, for example, don't have to care about what Big Tech decides is and is not permissible because I'm here on Rumble and I can say what I want here. But at the same time, if I were to be censored off Twitter, that could actually impact my ability to promote my show and be heard. So, I also have somewhat of an incentive to avoid that as well. But financially and in terms of the work I do and the journalism I do, there's no incentive for me to remain within Big Tech’s limits. That's what was true when I was at Substack as well. And that's why I went to those sites because the last thing I want to do is fortify a Big Tech censorship regime. I want to subvert it and fight against it by strengthening not Big Tech platforms, but those platforms that are designed at their core to undermine the censorship regime built by corporate media and the parts of the U.S. government, like the Security State and the rest. I want to undermine and subvert that and overthrow it, not fortify it. 

Here's another clip from Steven Crowder on why he thinks the Daily Wire contract deceives their audience by doing the opposite of what they claim. 

(Video 48:02 )

Steven Crowder: There are good people at YouTube. There are some good people there who want, but their hands are tied. And guess what? Everyone else's hands are tied. If you say, Hey, we're all trying to fight this system that exists, but you're not, you're mandating that you exist within the system. Only one person is saying, Hey, you know what? If you want to be monetizing, you don't. That's fine. And one is saying you have to fit into this box. 

All right. Let's look at one more. He's pretty much making the same point, but let's just give him his due and hear what he has to say. 

(Video 50:19)

Steven Crowder: But there is this jockeying for position with people who they see as competition. And the issue here that I have always made clear is the locking in of these punitive contracts that mandate and enforce Big Tech policies and guidelines as a matter of business, and that hurts creators. 

So that argument standing on its own seems to me inherently reasonable. If you are saying on the one hand that a major cause of yours is overthrowing the regime of Big Tech, and then on the other, you're highly incentivizing people, in fact, requiring them, essentially, to obey whatever limits Big Tech happens to impose, whatever side of the bed YouTube wakes up on or Facebook wakes up on, and decides that you're now, I'd say this or not, you're now required by your self-interest to stay within the limits, it's very hard to authentically claim that you're fighting a system that you're in fact fortifying. That seems to me on its face to be a reasonable argument and an important one. Because if right-wing media outlets that are claiming to be the mortal enemies of Big Tech, presenting themselves as this huge menace to the hegemonic force of Big Tech are in fact inextricably linked to them and want to stay linked to them because of the millions of dollars they make from them, that seems like a real conflict, a problem – a big problem to me – that he is exposing. 

But let's look at the response from the CEO of The Daily Wire, who, I think, did a very good job laying out, from a business perspective, why it makes sense for The Daily Wire to want to earn profit from Big Tech. Big Tech is a huge industry. I mean, if I wanted to build the biggest audience possible, as quickly as possible, I probably would go on YouTube and not Rumble. YouTube is still way, way bigger than Rumble, even though Rumble is growing rapidly and gives me enough of an audience to make the show successful and I believe will keep growing. If I were just interested in how to monetize the show, I would probably go to YouTube. But since I'm not interested only in that, I'm interested in the cause. Here I am in Rumble and not YouTube. So, Daily Wire's response is a business response that is essentially the way we make the most profit is by adhering to Big Tech limits. Here's what he has to say. 

(Video 53:04)

J. Boreing, The Daily Wire:  If the content simply cannot appear and therefore cannot not only be used for marketing, cannot be used to grow, the brand also can't be monetized. Well, we can't pay him the same as if it was. If you're making 25% of your money on YouTube and now YouTube is permanently gone, you can't make that money anymore. It's not punishment. And this is really what it comes down to Steven’s philosophy seems to be: I deserve to be paid millions and millions and millions of dollars. Whether my show drives the revenue or not. That's not a business relationship. He's not looking for a business relationship. It's looking for a benefactor. The Daily Wire is not a nonprofit. We aren't benefactors. We're a business. We only get to eat what we kill. 

I mean, I don't think any of you who have seen The Daily Wire or Ben Shapiro would doubt that they’re a business, they're looking to make money. And that's fine. That's legal in the United States. That's capitalism. But that is different than claiming that you're pursuing it because oftentimes those things are aligned and in other instances, they're in conflict. And the question is when they're in conflict, which do you choose? Now, as I said, it's not always easy. You can't completely insulate yourself from Big Tech if you want to be a viable business. But if you present yourself as a cause, a political cause, the reason people give you money is because they agree with your cause, there do have to be some occasions in which you're willing to sacrifice more and more profit and self-enrichment. These guys are all very, very rich already. There has to be a moment when you're willing to say, I'm willing to sacrifice some profit, some money, in the name of the cause that I am convincing people I support – and in getting money from them on the basis of having convinced them of that. But all of these answers are about the business of The Daily Wire, the profiteering of The Daily Wire. Let's look at one more just to make sure he has his due as well. 

(Video 50:57)

J. Boreing, The Daily Wire: I mean, I mentioned it before. Stephen created this idea of piss-off YouTube segment at Mug Club, and I saw it and thought it was genius. What does it mean? It means Stephen can go on YouTube, and speak to a huge audience – in fact, most of his audience, that's where they engage with him, right? The subscribers are a very small percentage of Stephen's audience. Mug club is a very small percentage of his audience. YouTube is the vast, overwhelming majority of Stephen's audience. He can go on there and he can be risqué and he can do what he wants to do. But he can be calculated, too. And he can say there are some things that I simply can't say here because these bastards hate free speech, for those things come over to my club and become a subscriber. And then for 30 minutes a day at The Blaze, he could say whatever he wanted.

 

And I thought that was a genius thing. And I implemented it at Daily Wire because I was inspired by Stephen, who again, very talented guy, a very smart guy. This is just meant to say the same thing. Hey, I want you to be thoughtful about what you say on the free part of the show. Doesn't mean I want you to say things that aren't true. Doesn't mean I want you to say things you don't believe. That doesn’t mean I want you to bend the knee to Big Tech. What it means is I want you to preserve the revenue as best you can, preserve the audience as best you can, and then tell people there's a reason we're building these multi, multi, multi, multimillion-dollar platforms. There's a reason we have subscribers and so that there is a place where they can't take our voice away. They can't tell us what to say. 

So, what he is essentially saying is, look, we're not pure or even close to it but neither is Steven Crowder, since Steven Crowder, whose primary profits come from his show on YouTube, I believe he's already been demonetized, but the millions of views that he racks up is what then enables him as well to promote the parts of his show that are kind of behind the scenes that you have to pay in order to watch. And that's where he goes, Steven Crowder, to say the things that he's not able to say on YouTube. 

So, what you see here is this attempt on both of their parts to figure out how to grapple with the reality that you need to use Big Tech, you need to exploit them in order to be able to be heard. Because if you're not heard, if no one watches you, if you make no money and can't fund a studio and can't fund a staff, you can't have any impact. So that is true. There is a reality to it. As I was saying before, the hegemonic force of Big Tech means they're inescapable. As I said, I use them myself. But what you can't do is while claiming to people that you are devoted to this cause, simultaneously, use their money to fortify the very system you claim that you're fighting. And I think the issue becomes that there are people whose primary aim in life is to make as much money as possible.

And that's fine, as I said, if that satisfies them. I'm a big believer that people should pursue whatever provides them the most self-actualization. And if having a third house or a Lamborghini or a yacht or taking your family to shopping trips on a private jet to Paris to go shopping in boutiques is something that gives you purpose and pleasure in life, you're certainly permitted to pursue that. But I don't think what you should then be simultaneously doing is telling people that they should give you money because you're here to fight for a cause. Because fighting for a cause necessarily, by definition, means that in those instances when there's a clash between your economic self-interest on the one hand and that cause on the other, that at least on some occasions not all, but on some, you're going to forgo material and economic gain in pursuit of that cause, or else it's not a cause.

And I think as a discerning consumer, everybody should be very conscious of whether your political passions are being served and advanced or whether they're being exploited. And as I said, I wasn't here to kind of arbitrate who is right and wrong. I don't want to kind of spit fire and brimstone at anybody because I don't think it's a case that calls for that. There are complexities here. But at the end of the day, people should be able to demonstrate to you if they want to convince you that they're genuine, that there are times when they've sacrificed their own self-interest for the cause, especially if and that's true of all the people involved here, they're already extremely wealthy people. They're not people who are making choices on how to put food in their children's mouths. So, I find that episode interesting. 

Let's move to a different episode, which is equally interesting as well. As we've covered on the show a lot, Elon Musk bought Twitter also claiming he did so not purely for economic gain but for a cause. And that cause, at least one of them, was to restore free speech to Twitter because political censorship is so harmful. And yet we've already seen on several occasions, Elon Musk seemingly violating the principles he waved the banner of when he purchased Twitter and got people excited about that cause. 

I think we saw that first when he banned Kanye West from Twitter after first unbanning him. When Kanye West went to the Alex Jones's show and talked about how much he loved Hitler, and then the next day went onto Twitter and posted a symbol that was a synthesis of a star of David and a swastika. That was obviously a speech deeply offensive to the vast majority of people, to put it mildly, but under no circumstances did it violate any of Twitter's rules. And yet, Elon Musk banned Kanye West from his platform, largely because I think you couldn't have a hospitable place for corporate advertisers and have Kanye West on your platform talking about how much he loves Jews and posting swastikas.

And so, this rationale got concocted that the reason Kanye West was banned was because he was inciting violence. Remember, Elon Musk said that his understanding of free speech absolutism is that anything that is legal will be permitted and what's illegal will not be. And we did a whole show on this. Under Supreme Court law, there is no conceivable possibility at all that Kanye West could be prosecuted criminally for anything that he said, let alone for anything he said on Twitter. So, Musk banning him violated Elon Musk's own principle about how he said he was going to advance the cause of free speech.

The same thing happened yesterday when Nick Fuentes, who most definitely is well outside the realm of what most people consider to be acceptable discourse, went onto Twitter because he had been unbanned after, I think, a year of being banned from the platform, he got unbanned and he went back on Twitter. He lasted not even a full day. He began talking about the dangers of Jewish power, and the need to fight against Jewish power, things Kanye West has been saying as well. Just the kind of speech that is generally deemed off-limits in decent society. But Nick Fuentes also did nothing and said nothing conceivably illegal, the question of why Elon Musk banned Nick Fuentes, now, again, you have some complexities here. 

In order for Elon Musk to run Twitter, Twitter has to be financially viable, and, perhaps, in order for it to be financially viable, you need to kick off everybody who talks about Jews and the power that they wield because that's just a topic that is sustainable with attracting advertisers. Maybe that's the case. Well, then be honest about that. Say that that's the reason you're doing it. You're doing it against your will. You wish you didn't have to. You say you're a free speech absolutist, but unfortunately, it's not compatible with Twitter's ongoing sustainability. And instead of inventing obviously fake reasons, unsustainably fake reasons like, oh, they're inciting violence, in order to pretend that the standard you created, which is anything illegal, will be banned and anything legal permitted is somehow consistent with the banning of those two people when it clearly isn't. 

Another instance was reported by The Intercept today. The headline is “Elon Musk Caves to Pressure From India to Remove a BBC Doc Critical of [Indian Prime Minister Narendra] Modi”. So, there you see the text of the article, “Twitter and YouTube” – not just Twitter, but also YouTube – censored a report critical of Indian Prime Minister Modi in coordination with the government of India.

Officials called for the Big Tech companies to take action against a BBC documentary exploring Modi's role in a genocidal 2002 massacre in the Indian state of Gujarat, which the officials deemed a “propaganda piece.” In a series of posts, Kanchan Gupta, senior adviser at the Indian government's Ministry of Information and Broadcasting, denounced the BBC documentary as “hostile propaganda and anti-Indian garbage.” He said that both Twitter and YouTube had been ordered to block links to the film before adding that the platforms “have complied with the directions.” Gupta's statements coincided with posts from Twitter users in India who claim to have shared links to the documentary but whose posts were later removed and replaced with a legal notice. […] “The government has sent hundreds of requests to different social media platforms, especially YouTube and Twitter, to take down the posts that share snippets or links to the documentary,” Indian journalist Raqib Hameed Naik told The Intercept. “And shamefully, the companies are complying with their demands and have taken down numerous videos and posts” (The Intercept. Jan. 24, 2023). 

Now here's The Intercept’s opening:

This act of censorship – wiping away allegations of crimes against humanity committed by a foreign leader – sets a worrying tone for Twitter, especially in light of its new management. […] Modi's government in India regularly applied pressure to Twitter in an attempt to bend the social media platform to its will. At one point, the government threatened to arrest Twitter staff in the country over their refusal to ban accounts run by critics. […]

Twitter's moves at the behest of Modi's government bode ill for Musk’s claims to be running the company with an aim of protecting free speech. While Musk has felt fine wading into U.S. culture wars on behalf of conservatives, he has been far more reticent to take a stand about the far dire threats to free speech from autocratic governments (The Intercept. Jan. 24, 2023). 

I think the reporting is accurate. I think the opining is tendentious for reasons I'm going to explain in the context of Brazil. 

Now, before I do that, let me just remind you of an incident that happened with Rumble. That was very similar to the one that just happened in India, where India ordered Twitter and Facebook to remove a documentary that it claims was fake news and threatened those platforms that they would be banned in India, a huge country, if they failed to comply. And Twitter and Facebook complied out of fear of losing access to the Indian market. In November of last year, just a few months ago, the French government ordered Rumble to cease platforming Russian media, including RT and Sputnik. You may recall that the EU made it illegal for social media platforms to allow Russian state media on their platform, even if those platforms want to offer them and even if people want to see them. And even though Rumble is not a European company and therefore not subject to EU law, it's a Canadian company based in the United States, the French government reached out to Rumble and said, "We demand that you censor RT if you want to stay in France.”

And instead of obeying, the way Twitter just did to India and Facebook just did to India, Rumble said No. Rumble said No, thank you. We would prefer to make our own decisions about whom we keep on our platform. We're not going to obey your censorship orders. You're a foreign government. We have no democratic control over what you do, and we're not going to obey your censorship orders. And we would rather lose access to the French market than obey your orders about whom we can and can't platform. And that's why, to this day, if French citizens not using a technology that scrambles where they're from, try to watch my show or any other show on Rumble, they will get a message saying Rumble is unavailable in France as a result of their refusal to obey the censorship orders of France. 

That is what a company does when they're truly committed to preserving free speech. That is an example of sacrificing your self-interest. Access to the entire country of France in pursuit of the goal of free speech that you claim you're having. I think Rumble deserves a lot of credit. 

Now, there's a complexity there, too, which is that France is not an important part of Rumble's overall business at the moment. I think it's something like less than 1% of our normal viewers are in France. Losing access to France does not really affect Rumble’s business right now, though it certainly could in the future. Rumble intends to grow in most countries, including in France, but, nonetheless, it would obviously be better for Rumble to be available in France, and it chose to sacrifice its business self-interest. Rather than do something that it says it's against doing, which is taking censorship orders from countries. This is behavior that we want to encourage. Not having every company bend the knee to a Big Tech on the grounds that, well, we need to do so for our own self-interest, that the way that the Daily Wire is doing, the way that Twitter and Facebook did when it came to India, or rather I'm sorry, I keep saying Facebook. I believe it's YouTube that did it. But Facebook does the same thing on many occasions. 

Now, as some of you know, I've been heavily involved in the debate over censorship here in Brazil. We've reported several times on what's been going on in Brazil. Last Friday, we reported on a really shocking censorship order that we were the first to report in which a single judge on the Brazilian Supreme Court, Alexandre de Moraes, issued this order that we showed you – we translated into English – addressed to Facebook, Rumble, Telegram, Tik Tok, Twitter, and YouTube, ordering all six of those platforms to immediately, within two hours, ban a long list of people, some of whom are elected officials in Brazil – including the candidate who ran for Congress and got the most votes in Brazil, Nicolas Ferreira, 26-year-old Bolsonaro supporter, got 1.4 million votes – and all you see here is no specific allegation they’ve done anything wrong, not pointing to any statement they made allegedly illegal, let alone evidence or accusations. It's just a list of people. This judge ordered them censored immediately and said you have two hours to do so. And if you don't, you will be fined a large amount of money, 100,000 Brazilian reais every day, which is $20,000. And then, at the end, it says, ‘we demand that you keep this confidential.’ 

We got a hold of it. We revealed it. The people on this list had no idea that they were targeted by the sentence. It was done in secret. They had no due process, and, as a result, this judge is becoming more and more controversial. Just today, there's an article from the AP that actually does a very good job of covering this debate here in Brazil, and why this judge is out of control. Censorship powers are starting to contaminate the right to free speech and a free Internet in other countries. 

You see here the article headlined “Crusading Judge has the Boundaries of Free Speech in Brazil”. And I'll show you a couple of paragraphs: 

In the wake of this month's attack on Brazil's Congress presidential palace and Supreme Court by a mob of Bolsonaro supporters seeking to overturn the recent election, Judge de Moraes’ role as a chief judicial power broker has expanded further. Some accuse de Moraes of overstepping in the name of protecting Brazilian democracy from the twin threats of political violence and disinformation. Others view his brash tactics as justified by extraordinary circumstances. “Our democracy is in a situation of extreme risk, so it is understandable that some exceptional restrictions be put in place, said Juliana Cesário Alvim, a human rights professor at the Federal University of Minas Gerais, who has researched the Supreme Court's decisions. “But that doesn't mean there shouldn't be criticism of how these cases are handled (AP. Jan. 25, 2023). 

It essentially covers the whole debate with the left and the media united saying that Brazil is under such threat that we need to go very far and be very radical in censoring everybody who supports the Bolsonaro movement and others, including myself. But a lot of Brazilian specialists in law and politics saying that what you're essentially doing is installing an authoritarian regime in the name of defending democracy, a lesson that we've seen over and over in the United States when the Bush government, the Bush-Cheney government, adopted a lot of radical powers domestically in the name of protecting democracy; something we've seen throughout Europe, where they claim they have to protect democracy by censoring more and more. 

And so, you see this list of social media companies who have been ordered to obey the censorship order. So far, all of them have. If you go on Twitter, for example, Elon Musk’s Twitter, and you look for the names of these people, you will find, if you're in Brazil, you will see it says the account withheld as a result of legal order in Brazil. So the same thing on Facebook, the same thing on Instagram. You can actually find Monark, the person who we interviewed and he's on Rumble. But I don't know what Rumble's position is. I just see that Monark pays just a lot. 

But Telegram today announced that it was refusing to obey this order when it came to that person in Brazil that I mentioned, Nicolas Ferreira, who just got the most votes of anybody when running for Congress, and Telegram is saying they refuse to obey the order. 

Here you see an article from the Rio Times, the headline of which is “Telegram ignores Brazil's Migration Decision and Does Not Block Conservative Congressman's Account”. 

For those of you who don't know, Telegram is an app that is specifically designed to protect the privacy and free speech rights of its users. It debuted in August of 2013, just two or three months after we began the Snowden reporting. That was one of its primary impulses, which was to say we are going to protect your privacy because we now know that States are invading your privacy. But also many people who have been censored off platforms have gone to Telegram, which is very devoted to protecting people's free speech rights. And so, they have announced that at least for now, they're ignoring the order of the Supreme Court judge and they sent him a letter.

And this is what the letter says: “The telegram messaging application refused to block the channel of elected federal parliamentarian Nicholas Ferreira”. [There you see the PL, which is Bolsonaro's party.] “In a letter sent to the Supreme Court. Alexandre de Moraes, the company's lawyers asked that the block be reconsidered and the company stated that many court decisions for the removal of content are made with, “generic grounds” and in a disproportionate way,” according to Globo, which is a newspaper in Brazil. The company's demonstration occurred in the inquiry investigating the “anti-democratic acts” created out of thin air by de Moraes to persecute conservative Brazilians”. 

In other words, what Telegram did was what Twitter and YouTube refused to do in the face of India's demands and what Twitter under Elon Musk and others refused to do in the face of Brazil's demands, which is to block all of these accounts. I believe Twitter and a few other companies are appealing the order in Brazil, but in the meantime, they're obeying it by banning all of those people's accounts. Telegram, on the other hand, is saying, we don't care.

We're not obeying this because you didn't even give us any specific reason in the censorship order why we should believe these people deserve to be censored, let alone evidence justifying the allegation that they've done anything wrong, let alone any due process or the ability for them to go and contest the order. And therefore, in the name of democracy, given that this person was just voted by 1.4 million Brazilians to represent them in Congress, we are going to disobey your order and we're asking you to reconsider it. Instead of reconsidering the order or giving them an opportunity for their lawyers to come in and argue, just before we went on there, Judge de Moraes already announced that he is now imposing fines on Telegram. 

A year ago, Judge de Moraes sent a bunch of censorship orders to Telegram, and when they didn't comply, he threatened that he would block Telegram from the entire country. And that's likely what's going to happen here again if Telegram doesn't pay these fines or if they don't immediately ban this congressman's account, my guess is that this judge will do what he's done before, which is ban the entire platform from being in Brazil, much the way that Rumble is now unavailable in France. 

The question, though, is what will happen if Elon Musk's or Facebook or YouTube under Google decides that they're actually going to for once not just pretend to oppose core censorship by states but use the power that they have to defy it. 

Imagine if Twitter and YouTube and Instagram stood by Telegram and Rumble and said, we too are going to disobey your order. What then would happen? Would the Brazilian Supreme Court or the Indian Supreme Court cut off their entire country from basically the entire Internet by banning Twitter, Facebook, Instagram, and YouTube in all of Brazil or all of India? Would the population tolerate that? At some point, if you're going to claim that you're a platform devoted to free speech, the way Rumble and Telegram are doing, you need to step up and be willing to at least risk some of your self-interest to prove that you're authentic in that cause, like I said, the way Rumble and Telegram have done. 

But for now, Twitter, Facebook, and YouTube, despite being insanely and unimaginably rich as corporations, refused to do so. And that means that these governments will continue to be able to exercise the center of power because Telegram is a site that's really only for dissidents. You only care about using Telegram when your party is out of power. And so Brazilian leftists don't need Telegram. They're not at risk of being censored or surveilled. Their party is in power, so they don't care if Telegram is banned, but they would care if Twitter and Facebook and YouTube, and Instagram are banned.

In all of these cases, the common theme is that companies that tell you that they have a certain cause, politicians who tell you that, or media personalities who tell you that they believe in a certain cause and that, therefore, you should support them because of it, until they're willing to show you that not necessarily in every case, but at least in some cases, they're willing to sacrifice their own self-interest in pursuit of that cause, you should harbor very serious doubts about the authenticity of that claim. 


We will be back tomorrow night, here, on Rumble, at 7 p.m. EST, and every night, which is our regular time, and then, come back tomorrow night for an interactive show on Locals as well. 

Thanks, everybody for watching, and have a great evening. 

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February 20, 2025

Hey @ggreenwald ,

Speaking of freedom of speech in Germany—this is our everyday reality. Here are screenshots from two of the most prominent mainstream media outlets in Germany. As always, The Comments re Turned Off.

Today is the last day of Scholz time in power (CDU wins tomorrow), and here is the first sentence of his speech today:

"Für mich ist ganz klar: Der ukrainische Präsident ist ein demokratisch gewählter Präsident. Er hat sich gegen Wettbewerber durchgesetzt, und das war ein ganz klares, deutliches Votum der Bürger und Bürgerinnen der Ukraine – für die Demokratie, für die Entwicklung des Rechtsstaates in der Ukraine."

Translation for those reading this post:

"For me, it is absolutely clear: the Ukrainian president is a democratically elected president. He prevailed against competitors, and it was a very clear and distinct vote by the citizens of Ukraine—for democracy, for the development of the rule of law in Ukraine."

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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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