Glenn Greenwald
Politics • Writing • Culture
Matt Gaetz on Ending Ukraine Aid & Dropped DOJ Charges. Plus, Rumble Scores Massive Free Speech Victory
Video Transcript: SYSTEM UPDATE #42
February 16, 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, February 15, 2023. Watch the full episode here. 

 

Matt Gaetz, the Republican congressman from Florida, finally has his name cleared as the result of an announcement from the Biden Justice Department that they do not have sufficient evidence to charge him with any crimes. Gaetz had his name and reputation dirtied and crippled and even destroyed by an anonymous leak published almost two full years ago by The New York Times under this headline, “Matt Gaetz is Set to Face Justice Department Inquiry Over Sex with an Underage Girl.” Despite having no opportunity to contest this innuendo – because he was never charged – Gaetz has been widely assumed to be guilty of one of the most horrendous crimes there is.  

We had already booked Congressman Gaetz several days ago to appear on our show tonight to talk to him about his new bill to cut off all future U.S. funds to fuel the proxy war in Ukraine. And for our interview segment tonight, we did sit down with him just before the airing of our program to talk to him about that bill, and we'll show you that. But we also asked him about the vindication he received today and the lessons to draw from that. 

Before we show you that interview, we will examine what happened here. I've been reporting on this story from the very beginning, and we want to highlight the crucial lessons about due process and presumption of innocence and media recklessness that were deliberately trampled on when it came to his rights and the goal and the instrument was the media malfeasance.

 After that, we report on a major victory for free speech today. A federal judge in New York, an Obama appointee, ruled in favor of Rumble and one other online publisher by invalidating a 2022 New York state law designed to govern how social media companies must handle complaints about so-called “hate speech.” The court ruled that the law is a gross violation of the free speech guarantee of the First Amendment. We’ll explain the ruling and its important implications. 

As a reminder System Update, in addition to being available live on Rumble and then watchable forever on this platform, is also now available in podcast form. Each episode is posted to Spotify, Apple and all other major podcasting platforms the day after it airs live here. So those who wish to do so can follow us there as well. 

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


 Americans love to talk about all the rights we have. It's virtually a national pastime to do that, but we don't spend very much time discussing the reason why these rights exist, or why it is that they matter so much. That's definitely true of free speech, for sure, and it’s at least as true of due process. 

Like free speech, due process is both a constitutional guarantee and a societal value. The constitutional right is straightforward. The Fifth and 14th Amendments to the Constitution provide that neither the federal government nor the states may “deprive any person of life, liberty or property without the due process of law. That right did not materialize out of nowhere. For centuries, institutions of power had imprisoned people or seized their property, or even killed them based on highly dubious and unproven accusations. 

Like all of the guarantees in the Bill of Rights, due process was designed to prevent abuses of power by the state that founders had seen being undertaken for centuries throughout history. It requires that the government must first charge you with a crime and then prove your guilt before treating you as a criminal. The right of due process protects you against arbitrary punishments or fraudulent accusations as long as you have a fair shot to defend yourself, and as long as the government is required to clear a very high hurdle to prove your guilt with things like requiring proof of guilt beyond a reasonable doubt, an impartial judge and jury, the right to cross-examine witnesses, prohibitions against forcing you to testify against yourself, bans on having the state try you more than once for the same crime. Only then are we largely protected, not entirely, but largely, from the state's abuse of its power to punish citizens, imprison us, take our property, and even kill us. 

As is true of free speech, due process is not only a legal requirement, it's also a societal value. The constitutional right of free speech means the state is barred from enacting laws or taking other action to criminalize or outlaw the expression of particular political views. But free speech as a value extends far beyond that. It represents a consensus judgment that, in general, our society is healthier, our institutions more accountable, and our discourse more likely to foster truth if we maximize the values of free inquiry and free thought. In other words, we safeguard those values not just from incursions by the government, but by anyone and everything. 

The concept of due process similarly extends beyond its legalistic doctrine. As a society, we believe it is wrong to assume someone's guilt based on mere accusations. Evidence and proof is required before a rational person believes that an accusation is true or regards a person as a criminal based on accusations that they've committed crimes. That is why the mantra ushered in by the #MeToo movement – “Believe Women” – was so offensive to our innate sense of justice. 

No accusation is entitled to a presumption of truth, especially accusations that attempt to pin on someone the worst possible crimes that can be conjured. Even those who believe that the #MeToo movement shed light on genuine injustices such as the intrinsic difficulty many women face in proving that they were the victims of sexual assault or sexual harassment, given that such acts are often undertaken in private and with no witnesses and leave behind no physical evidence - even they are forced to admit that the “Believe Women” decree if taken literally, can usher and has ushered all kinds of grotesque successes and abuses. 

The power to destroy someone's reputation based solely on one's say-so is a power far too potent for anyone to wield with no safeguards. All of us, all humans, regardless of our gender, are susceptible to abusing the power that is placed in our hands. All of us, at some point, have felt the temptation of vengeance, of jealousy, of having been betrayed or wronged, and the power to destroy the target of our rage simply by accusing them of heinous acts and then expecting our accusations to be instantly accepted is true without question, and having the accused be ostracized and destroyed with no proof, is a power far too dangerous for anyone to wield. Only the values of due process can provide the necessary safeguards. The societal value that holds that accusations will be believed will be presumed true if and only if they are accompanied by convincing evidence beyond the accusation itself, and only if the accused has a fair opportunity to defend themselves. 

All of these crucial values were completely trampled on deliberately almost two years ago, when the nation's most influential newspaper, The New York Times, published a story that, by design, pinned onto the forehead of one of their ideological enemies, Florida Republican Congressman Matt Gaetz, some of the worst and most destructive labels one can attach to a human being: pedophile, sex trafficker of minors, abuser of underage girls. 

The passage of time has led many people to forget just how little care or caution The New York Times exercised when deliberately depicting Congressman Gaetz as a sexual predator of children. The paper of record had no evidence when they published this to enable it to conclude that the accusations were true. All they had were leaks from still anonymous sources that Gaetz was being investigated by the federal government for some of the worst crimes that a person can commit. The Times headline by itself was more than enough to destroy Matt Gaetz’s reputation and it read, “Matt Gaetz is Said to Face Justice Department Inquiry Over Sex With an Underage Girl.”

One who read the article beyond the headline would not even have known how little evidence existed to suggest this claim was true. To the contrary, the article was written to use the harshest and most blunt words possible to attach them on the most visceral and irreversible level to one's perceptions of Matt Gaetz. In case anyone had any doubts about the motives of the paper, they even somehow managed to mention former President Trump in the very first paragraph of this article, even though Trump had nothing to do even conceivably with any of these events. The article read, 

 

Representative Matt Gaetz, Republican of Florida and a close ally of former President Donald J. Trump, is being investigated by the Justice Department over whether he had a sexual relationship with a 17-year-old girl and paid for her to travel with him, according to three persons briefed on the matter. Investigators are examining whether Mr. Gaetz violated federal sex trafficking laws, the people said. A variety of federal statutes make it illegal to induce someone under the age of 18 to travel over state lines to engage in sex in exchange for money or something of value. The Justice Department regularly prosecutes such cases and offenders often receive severe sentences. 

It was not clear how Mr. Gaetz met the girl, believed to be 17 at the time of encounters about two years ago that investigators are scrutinizing, according to two of the people (The New York Times. March 30, 2021). 

 

Ever since the publication of that New York Times article almost two full years ago, the mere mention of the name Matt Gaetz – one of the very few members of Congress steadfastly devoted to ending the U.S. posture of endless war in confronting and heavily scrutinizing the U.S. Security State – just the mere mention of his name prompted the media accusations that he's a pedophile, a sex trafficker of minors, a criminal, a pervert, someone who clearly belongs in federal prison and it's just a matter of time before he ends up in the cell.  

Those accusations flowed and flowed, despite the fact that Gaetz had never even been charged, let alone convicted, of any crimes. In other words, this one leak successfully besmirch his name and reputation – it destroyed it in many circles – even though nobody bothered to present evidence he committed any crimes, it made it almost impossible for anyone to be associated with Matt Gaetz – lest there be guilt by association that if you're having anything to do with him, interacting with him in any way, it must mean that either you too are a pedophile or don't care about pedophilia. That is what it was designed to do to render him radioactive without the need for any trial or even having any evidence. Last September, about five months ago, The Washington Post reported under the headline “Career Prosecutors Recommend No Charges for Gaetz in Sex Trafficking Probe” that, 

Career prosecutors have recommended against charging Rep. Matt Gaetz (R-Fla), in a long-running sex-trafficking investigation – telling Justice Department superiors that a conviction is unlikely in part because of credibility questions with the two central witnesses, according to people familiar with the matter (The Washington Post. Sept. 23, 2022). 

Earlier today, the Justice Department made it official. 

Here you see, from CNN, the headline that reads, “DOJ Officially Decides Not to Charge Matt Gaetz in a Sex-Trafficking Probe”. The article states, 

The Justice Department has informed lawyers for at least one witness that it will not bring charges against Florida GOP Rep. Matt Gaetz after a years-long federal sex-trafficking investigation. Senior officials reached out to lawyers for multiple witnesses on Wednesday, a source familiar with the matter told CNN to inform them of the decision not to prosecute Gaetz. 

Prosecutors working on the case recommended against charging Gaetz in September, in part, because of questions over whether central witnesses in the investigation would be perceived as credible before a jury, CNN reported at the time. 

But the final decision not to move forward with charges came from senior department officials. The DOJ declined to comment (CNN. Feb 15, 2023). 

 

This is not some technicality that happened here, as far as why it was that he wasn't charged. The fact that the two witnesses making accusations against him were judged – not just by career prosecutors, but by the political appointees of the Biden Department – to lack credibility, in other words, to have strong reason to believe they're not telling the truth, goes directly to the crux of whether the accusations are valid. But whatever else is true, this means that Matt Gaetz will never have been charged with any of these crimes that The New York Times caused to be attached to his reputation, let alone will he ever be convicted of them. In fact, because there will be no trial of any kind, Matt Gaetz has no ability – and has had no ability – to defend himself from any of this. All he knows is that The New York Times caused huge numbers of people, millions of people, to believe he was a pedophile and a sex trafficker of minors. He had no opportunity to confront the witnesses behind this, to examine the evidence presented – because none of it was presented. He just sat there having people call him a pedophile every single day for the last two years because of what The New York Times did – aired all kinds of grievous accusations against him, even though there was no evidence to believe that they were true. 

Just to give you an indication of how so many liberals have treated these accusations, let's look at a tweet from September 2022, when The Washington Post announced – all they did was that career prosecutor concluded that they couldn't convict Matt Gaetz in a court of law because there was no credible evidence against him. 

Here you see Ryan Cooper, who's a very standard liberal journalist who works with the American Prospect, over the article from The Washington Post reporting that career prosecutors did their duty in declining to prosecute because there was no credible evidence, he wrote: “chickenshit club.” He wanted Matt Gaetz prosecuted and convicted and imprisoned not because he cares at all about whether Matt Gaetz is guilty of sex trafficking of minors and pedophilia. He wants Matt Gaetz in prison because Matt Gaetz has a different ideological perspective of the world than Ryan Cooper does. Matt Gaetz, for instance, is against endless war, while Ryan Cooper being a good establishment liberal is for them. Matt Gaetz is opposed to the abuses of the U.S. Security State, while Ryan Cooper, being a good liberal, reveres the CIA and the FBI and the NSA. This is a sick and authoritarian mindset on display to condemn the Justice Department, career prosecutors and Democratic Party senior Justice Department officials for doing their duty and refusing to charge him with a crime, even though Ryan Cooper has absolutely no idea of what evidence is available, he just wants him in jail. 

This is the mentality of American liberalism. They want their political opponents imprisoned. For years, before the 2016 election, Julian Assange was regarded universally as a hero, among the liberal left in the United States. I spent years defending Julian Assange. Ever since the major leaks in 2010 that revealed war crimes on the part of the Pentagon and all of America's closest allies in Afghanistan and Iraq, and then major corruption by U.S. partners throughout the Middle East and Saudi Arabia and Tunisia and the United Arab Emirates and Qatar that in many ways sparked protests throughout the Arab world – all kinds of benefits that were spread, that were brought about by WikiLeaks’ reporting. 

I don't remember a single person ever objecting to my defense of WikiLeaks on the liberal left and the Democratic Party. In fact, the Obama Justice Department refused to prosecute Julian Assange because they realized and said there was no way to prosecute him without also prosecuting the newspapers that publish the same materials, namely, The Guardian and the New York Times and El País and major newspapers around the world. That was heralded as the right decision by the Obama Justice Department and by virtually every single Democrat and liberal that I know. 

Now, though, it is almost required among American liberals to cheer Julian Assange’s imprisonment. Now they're happy that he's wasting away in the dungeon. And the only thing that changed was his behavior in the 2016 election, where he did reporting that revealed true documents that were incriminating of Hillary Clinton in the Democratic Party. Remember, that reporting led to the resignation of the top five officials of the Democratic Party based on proof that they cheated in the 2016 election by ensuring that Hillary Clinton won and Bernie Sanders lost. And because of that, because of their anger toward Assange, not for doing what he's indicted for doing – namely publishing top secret documents, something journalists do every day – but instead, because he reported in a way that undermined Hillary Clinton, they want him imprisoned. And they were able now to imprison him by the Justice Department for one reason and one reason alone: that they perceive Julian Assange to have the wrong politics. They constantly want their political enemies imprisoned, regardless of whether there's evidence that they committed crimes. This is the mentality of a fascist and an authoritarian. People who say “chickenshit club” when they learn there's no evidence to prosecute Matt Gaetz for sex trafficking, all because the only thing they know is Matt Gaetz is on the wrong side of political debates and therefore he belongs in jail. And that has been the reaction to that New York Times article from the beginning. 

I don't remember having a single hearing, a single Democrat or member of the American left objecting when people treated that innuendo leaked by anonymous sources with no evidence as true. I have a very distinct memory, in fact, of how they reacted, because, from the beginning, I began writing, almost instantaneously, about the dangers of treating these accusations as true, despite the fact that there's no evidence presented other than the leak by anonymous sources. 

Here, for example, you see an article that I wrote when I was on Substack, in April 2021, so, just a month or so, not even two weeks, after the New York Times story first emerged, urging caution in how these accusations were treated. The headline of my article was “Due Process, Adult Consensual Morality and the Case of Rep. Matt Gaetz.” The sub-headline reads “The Florida Congressman has not been charged with any crimes. But the reaction to this case raises important questions of political, legal and cultural judgments.”

I talked about several issues there, including the fact that American liberals overwhelmingly want to legalize what they call sex work, and the fact that in many states in the United States and for years it's been true, the age of consent is 16 and not 18 or 20 or 25, as many American leftists want it to be. But the real point of this article was, right in the first phrase, due process, that it was wildly inappropriate and incredibly dangerous to start assuming that people are guilty of the worst crimes because the New York Times decides to air innuendo that they're being investigated for it, even though no one has seen any evidence that it's true. 

Now, in addition to that article – and I have to say that was an article that prompted among the most intense anger and most grotesque attacks on me as any as I've ever experienced. The argument was that because I was defending a pedophile, defending a sex-trafficker of children, I likely – myself – was a pedophile and a sex- trafficker as well. Why else would I be defending Matt Gaetz, a pedophile, unless I myself was either a pedophile or had empathy for pedophilia? That was the argument that was made – and that is what they do on purpose. If anybody stands up and says, wait a minute, this person deserves a presumption of innocence, not just in court, but in our society, until evidence is presented, the mere accusation is not enough, especially when it comes from anonymous sources, they purposely will demonize you, too. They'll put that pedophile label on your head using guilt by association and an impugning of motives. Why else would I want to invoke the core rights in the Constitution of due process to defend Matt Gaetz from pedophilia accusations unless I too was a pedophile? That was the tactic that was used over and over. 

I have the fortune of not having any care about scammy and unfounded attacks of that kind. I feel an obligation, in fact, to use my platform to raise these kinds of issues that are very difficult for other people who are more vulnerable to raise. And so, I also went back and did an entire video on the dangers of prosecutorial leaks. We don't know where these leaks came from but the reason why it's illegal for prosecutors to leak information about investigations is precisely because investigations are not proof of guilt and that prosecutors can start leaking things to destroy your reputation. Prosecutors have unlimited amounts of power. They have the power to destroy your reputation by simply telling The New York Times that you're being investigated for some crime that then people assume that you're guilty of simply because The New York Times has said you're being investigated for it. That's exactly what happened in the case of Matt Gaetz. Here, I don't know if you can see that graphic that says the prosecutor’s duty of silence, from a law review article, explaining why it's illegal for prosecutors to leak anything about it. 

Let me just show you a clip of this video where I was explaining why this issue was so important to me. Due process is, along with free speech, a major cause of mine for decades, going back to my work as a lawyer and then when I started writing about the War on Terror and its excesses. A major objection I had to the Bush-Cheney approach to the War on Terror was that they were imprisoning people with no due process, no trials of any kind, not just in Guantanamo and not just foreign nationals in Bagram and in Afghanistan but they even claimed the right to imprison American citizens by decreeing them to be enemy combatants and then putting them in military brigs with no obligation to charge them with the crime or even give them access to lawyers. 

That actually happened in the case of Jose Padilla, to John Ashcroft, the then attorney general, when he was arrested in Chicago, at Chicago O'Hare International Airport. This is an American-born American citizen arrested on American soil. John Ashcroft accused him in a hastily arranged press conference of being the dirty bomber, and he was arrested, which is fine, but he wasn't put into the criminal justice system. He was taken to a military brig for three and a half years with no charges against him, without access to lawyers. He was held incommunicado until the Supreme Court basically forced the Bush administration to finally charge him. And then, when they did charge him, and they didn't charge him with being a dirty bomber, with trying to detonate a radiological weapon, they charged him with other crimes and he was convicted. So, due process has always animated my work as a lawyer and as a journalist. And I explain here why it's so important in the Matt Gaetz case, from December 2021. 

 

(Video 33:50)

G. Greenwald: What has happened instead is that The New York Times created this narrative, and put this gray cloud over Matt Gaetz's head as a result of what is certainly unethical and probably illegal leaks by people who are working on the prosecution investigating it for the Justice Department. And he has absolutely no way to defend himself because he hasn't been charged with anything. There's just media innuendo circulating and attached to his name that the Justice Department purposely created by leaking this story. And yet, there's no way for him to defend himself. This is why […] 

 

So, if you consider the context an article had emerged, from The New York Times again, that they had put additional prosecutors into this investigation and that Fuller, a liberal journalist with the Huffington Post, posted the New York Times article with no comment other than “Hoooooooooooo, boy.“ This is the intellectual and maturity level that they're at. “Hoooooooooooo, boy”? That was his reaction, this “journalist,” to hearing that a couple of more prosecutors were added to Matt Gaetz. His case obviously intended to imply strongly that that was proof somehow that Matt Gaetz is guilty. 

In response to that, Elie Mystal, one of the most deranged left-liberal commentators in the country, who himself is a lawyer, he's frequently on MSNBC, he writes for the Nation; this is what he said in response to the story: “On a scale of 1 to 10, 1 being “everything is fine,” 10 being “I'm going to jail”, adding prosecutors is a solid 8.”

The entire left-liberal commentary united to continuously, not just once, but continuously, over two years, encourage everyone to believe that Matt Gaetz was all but convicted. And that was what I was reacting to. Here's the rest of it. 

(Video 35:55)

G. Greenwald: It's illegal. It's unethical for prosecutors to leak the existence of a criminal investigation because you leak the existence of a criminal investigation, you put out there in the media that someone is being investigated for grave crimes, you've destroyed their reputation, but you have no obligation to present evidence that they're guilty of it, let alone afford them the opportunity to defend themselves. 

 

So, I've been warning about the dangers of this from the very beginning and the amazing thing is I wish that I could say that I was confident that Matt Gaetz's exoneration – which is what it is when the government comes out and says, we have no credible evidence to present to a jury to convince them that he's guilty is an exoneration in every way. It means Matt Gaetz will never be charged with anyone convicted of all these crimes that liberals have spent two years accusing him of having committed. The reason why I know, though, that this won't resolve anything, that people go to their graves calling Matt Gaetz a pedophile is because, like free speech, American liberals do not believe any longer in due process. It really is an authoritarian movement. They don't believe in the basic rights of the Constitution. They only believe one thing. And by “they” I mean pretty much the entire swath of the Democratic Party, as well as those Republicans who have profited greatly by masquerading as Republicans to oppose Donald Trump and yet, even with Trump gone, they're still shilling for the Democratic Party because their only audience – the only people who buy their books and retweet their tweets and put them on TV – are liberals. And so they've turned into Democratic Party shills, the Rick Wilsons of the world. The reason I know that they will never stop with any of this, even though he just got vindicated, is because they don't care about due process. 

So, let's remember that a special counsel was appointed early on in the Trump administration, Robert Mueller, the former FBI director for George Bush, to investigate one thing: whether the Trump campaign had criminally conspired with the Russian government to hack into the emails of John Podesta and the DNC, the Democratic National Committee. And just like as happened with Matt Gaetz, exactly the same, Robert Mueller spent 18 months investigating. He had full subpoena power, and unlimited resources, and all of that time, liberals were assuming that Trump was going to prison, that members of the Trump campaign clearly were going to be convicted of this crime that led to the enactment of a special counsel.  

Weeks before the Mueller investigation closed, John Brennan promised MSNBC viewers, as we showed you many times, that it was just a matter of time before Robert Mueller went and arrested Donald Trump Jr. and Ivanka Trump and Jared Kushner and Steve Bannon and Donald Trump himself, on charges that they criminally conspired with the Russians to interfere in the 2016 election. Robert Mueller closed his investigation. The number of Americans indicted for that central crime,  criminally conspiring with Russia, was zero. He did convict people. He did charge people on process crimes, crimes that happened only during the investigation – lying to the investigators of the FBI, those kinds of process crimes – but the number of people charged with the central conspiracy theory was zero. And in the report Robert Mueller issued, he made as clear as he could, just like the Biden Justice Department did today with respect to Matt Gaetz, that there was no evidence he could find that would establish the truth of this conspiracy theory. 

Here, for those who need a reminder, here's what he said: 

 

Although the investigation established the Russian government perceived it would benefit from a Trump presidency and worked to secure that outcome, and that Campaign expected it would benefit electorally from information stolen and released through Russian efforts, the investigation did not establish that members of the Trump campaign conspired or coordinated with the Russian government and its election interference activities. 

 

That was the entire purpose of that investigation. That was the conspiracy theory and its products. Robert Mueller concluded there was no evidence to establish the existence of that conspiracy theory sufficient to indict anyone for it. And do you think then Democrats and liberals apologize for saying it over and over or abandon them? Of course not. This is due process. They don't believe in that. They believe that their political opponents are criminals by definition, and they continue to this day to assert these crimes were committed even though the person they turned into the icon of truth and America's savior found no evidence to demonstrate it. So that's the same thing that's going to happen with Matt Gaetz but it's nonetheless important to remember what happened here, what The New York Times did, but also to realize the reasons why due process is so crucial. Exactly to prevent abuses of power like this, where the government can destroy you and can destroy your reputation, even though it has no evidence to demonstrate that you were guilty of anything. 

It was a coincidence that we have Matt Gaetz on our show today because we actually had invited him on a couple of days ago because he had introduced a very interesting new bill designed to cut off aid, any future aid, to fuel the war in Ukraine. 

Here you see, from Rep. Gaetz's page, the announcement of his bill, on February 9, just a few days ago:  “Matt Gaetz Leads 11 Lawmakers in Introduction of “Ukraine Fatigue” Resolution to Halt Aid to Ukraine”. His page and his explanation for the bill:

Since the onset of the war last February, the United States has been the top contributor of military equipment and aid to Ukraine, sending over $110 billion of taxpayer money to the Russia-Ukraine conflict, including an additional $2 billion in aid announced on February 3rd. Congressman Gaetz was joined by the following original co-sponsors on the “Ukraine Fatigue” Resolution: [ Note they're all Republicans] Reps. Anthony Biggs (AZ-05), Lauren Boebert (CO-03), Paul Gosar (AZ-09), Marjorie Taylor Greene (GA-14), Ana Paulina Luna (FL-13), Thomas Massie (KY-04), Mary Miller (IL-15), Barry Moore (AL-02), Ralph Norman (SC-05) and Matt Rosendale (MT-02). 

President Joe Biden must have forgotten his prediction from March 2022, suggesting that arming Ukraine with military equipment will escalate the conflict to World War III. 

America is in a state of managed decline, and it will exacerbate if we continue to hemorrhage taxpayer dollars toward a foreign war. We must suspend all foreign aid for the war in Ukraine and demand that all combatants in this conflict reach a peace agreement immediately (M. Gaetz (FL-01). Feb. 9, 2023) .

 

So, we are thrilled to have had Congressman Gaetz here to talk about this bill, his reasons for it and the politics around it but we would have been remiss if we didn't ask him about today's vindication, and so, we started by asking him about that as well. We really enjoyed this interview and I am certain you will, too. It's up right now. 


 

The Interview - Rep. Matt Gaetz

 

G. Greenwald: Congressman, thank you so much for joining us tonight. Really appreciate it. 

M. Gaetz: Oh, thanks for having me. 

G. Greenwald: So, as you know, we originally invited you on to talk about the bill that you presented to cut off aid to the war in Ukraine and we want to spend most of the time talking about that but, as it turns out, there was an announcement today from the Biden DOJ that they will not be charging you for anything having to do with what The New York Times two years ago almost said that you were under investigation for it. Just as a reminder, the headline of The New York Times was “Matt Gaetz is Set to Face Justice Department Inquiry Over Sex With an Underage Girl”. You've had this accusatory cloud hanging over your head with no opportunity to defend yourself for almost two years now. And now comes the announcement, two years later, that you're not going to be charged at all, let alone convicted. What's your reaction to all of that? 

 

M. Gaetz: Well, the announcement is not surprising, but it's certainly welcome. At times. I think the process is the punishment. People try to smear you, they say things about you that aren't true and then hope that it distracts from the mission. And while the last two years haven't been the most comfortable of my life, I've been very focused on my work here in Congress, representing my constituents and never really looking past the task at hand. And so, I'm pleased with the announcement, but I can't say it's a big surprise. 

 

G. Greenwald: Just one last question about this, and then I want to move on. But what does it say about the climate that we're living in, in which people are willing to assume guilt with no due process, based on nothing but leaks? It's actually illegal for prosecutors to leak these sorts of things exactly for this reason, we don't know who leaked it. But clearly, you've got around now two years with people unjustly accusing you of this. What do you think? What lessons do you think we ought to learn from the fact that you won't end up ever being charged, let alone convicted? 

 

M. Gaetz: Well, the lesson I learned is that God doesn't give us anything that we can't handle but it is troubling when powerful entities in the media and government try to take you off the chessboard with false accusations. And they hope the accusation is so searing that even though it's not supported by facts, it can still derail opportunities to serve and in my particular case, to oversee the precise activities of the Department of Justice, the FBI, that I'm on, the Judiciary Committee, that's part of my work here in Congress. It's one of the things I focus on. It's one of the things I focused on during my first term when they were working to impeach President Trump over the Russia hoax. And it was a little surreal today, Glenn, that as I got this news from my attorneys, I was literally sitting in a transcribed interview of an FBI whistleblower there complaining to the Judiciary Committee with allegations that the FBI had upscaled anything that could be categorized, domestic violence, extremism, allegations that the FBI was not following its own rules in practice when it came to January 6 defendants. And so, to be there in an oversight role and then getting this news, maybe it opened up a wormhole somewhere. 

 

G. Greenwald: Yeah, there's a reason the due process is guaranteed in the Constitution and there's been a value since the Enlightenment, because people abuse their power to accuse others, to take out political enemies, and the like. And so, I think we see the reason why that right is so important. 

So, let's move on to this bill you have pending, along with ten of your colleagues in the House, I believe, who have cosigned it, to essentially cut off further aid to the war in Ukraine. The United States has already allocated over $100 billion in various forms of aid for that war. What is the reason you introduced this bill? What's the rationale behind it? 

 

G. Greenwald: M. Gaetz: Well, first, it's a lot of money: $100 billion would be enough to secure the entire United States from Chinese cyber attacks. But instead, we've chosen to play in this war in Europe to such an extreme degree. Secondly, I think it should be principally Europe's obligation and responsibility because it's Europe's interests that are most directly impacted. And you're just creating the conditions for yet another forever war. If the United States is pouring cash into a faraway land over a historically corrupt country, hoping that that's somehow going to lead to like the liberation of Jeffersonian democracy, while you've got Germany and others in Europe buying so much Russian energy, it seems a little bizarre that the United States would participate to such a level. 

I also think that we are extending the violence. We are extending the carnage. No one wants to see this war go another day. And yet, when we continue to send these enhanced munitions and weapons systems, I think that we do make the likelihood of a longer war increase. Also, I'm not sure that we're following our own laws and our own regulations regarding the monitoring of material that is sent into an area of hostilities. In law, we have requirements for ensuring that U.S. equipment doesn't fall into the wrong hands. Each and every step has to be documented and reported. And I've become increasingly concerned that we're not even following those laws. And we just throw our hands up and say, well, we just have to do this for the sake of democracy. 

And in my time here in government, I guess on the planet Earth, sometimes I get most worried about these explosions of unity because they always seem to lead to the worst things we do. Right? There was so much unity after 9/11 that we needed the Patriot Act, and then we quite literally saw it turned against patriots and turned inward against Americans for political purposes. And then there was all this unity over COVID, and it led to some of the most egregious lockdowns. And then there was unity after the George Floyd death, we all, everybody had to come together and embrace, you know, the BLM movement, and if you didn't, you were shouted down as a racist. And I saw that same dynamic play out around Ukraine where, like, you just had to be for sending anything that would shoot, in the words of Ben Sasse, and if you weren't for that, somehow you believed less in American democracy or American interests. 

 

G. Greenwald: Yes. You know, the arguments – let me ask you about the two principal ones, wielded against people like you who say maybe the U.S. doesn't need to fund and fueled this proxy war into all of eternity. The first is that Russia is an enemy of the United States, and through this war, we're able to weaken an enemy of our country without having to send troops there or risk the lives of American citizens, we're just paying in order to weaken a major adversary. And that's a good deal. And the second one is if you cut off funding to the Ukrainians, as your bill suggests we should, then Russia will simply overrun the country, will conquer it, and will annex what they want. And I guess that's a bad thing for Ukraine. And the argument goes for the world as well. What are your responses to those two claims? 

 

M. Gaetz: So, I reject the premise of the first claim that somehow this is something we do in the absence of risk to Americans. Our country just lost a 20-year war to goat herders with rifles in Afghanistan. And I'm supposed to believe that Americans aren't at risk when we go poke a nuclear power with a madman in charge? If you accept the premise of the neocons, Putin is this crazy madman, well, then why would we be in a situation where we would greater risk to our fellow Americans sending weapons systems into Ukraine and into disputed territories in Eastern Ukraine on the border of Russia, where they're launching deep into Russian territory to strike Russian assets in Russian supply chains. That is precisely the ecosystem that leads to escalation. That's a risk to our fellow Americans. And, you know, the second, the notion that, well, just like they're an enemy, so we want the enemy weaker is not like what got us into Vietnam. 

America's very costly interventionism is usually driven by this debunked theory of geopolitics that if we play out a series of proxy wars by borrowing money from one country to send it to another, we somehow improve our global standing. It seems to do pretty well for the defense contractors and the elites. But I'm not sure that advances the interests of the people, like the farmers in my district, who rely on Russian satellite technology for seed planting, or they rely on fertilizer from Belarus. They're not doing better as a result of this. They're actually paying a price for it, a price that is far higher than just the cash that the U.S. government prints off but in terms of the inflationary impact on their lives and their energy, and their prospects. What was the second argument? 

 

G. Greenwald: You addressed both. That Russia will take over and conquer Ukraine if we cut off aid and that we're getting too weak an adversary with no lives at risk? Do you have anything to add to those? I feel like you address those. But if you want… 

 

M. Gaetz: I want Ukraine to prevail. But shouldn't Germany want that more than the United States? Shouldn't these European powers use their money to facilitate socialism and then want us to go and subsidize their defense, all the while they're critical of us? That makes us dead money on the world stage, not a meaningful impact player. 

 

G. Greenwald: Yeah, I mean, it's amazing that these countries, so many of the ones to whom we give aid or to whom we provide protection, beginning with Germany, have given to their citizens a better standard of living than a huge number of American citizens are able to get. And we're spending our resources to further enrich those countries, to protect those countries, to relieve them of their obligations while our citizens suffer. So, you mentioned the people who are benefiting, which are not people in your district – I bet you could go around to a town hall in every district and not one person would say that the thing they worry about, when they wake up in the morning, is who is ruling the Donbas or eastern Ukrainian provinces – but you did mention people who are benefiting and those are arms dealers. 

I remember in the House Armed Services Committee, where you served, the debate during the Trump administration, where you were arguing the best way to get out of Afghanistan was yesterday, and the next best day is today. You ended up losing that debate. The House Armed Services Committee blocked President Trump from withdrawing, but we did end up withdrawing, finally, during the Biden years, in the first year of the Biden administration. And then it's kind of amazing that six to eight months later, the arms industry gets this brand new war that is a brand new, very lucrative market for all of their weapons that they lost when we finally got out of Afghanistan. 

Do you mark that up as a coincidence, or do you think that, at least, part of the reason we keep finding wars to fuel is that these arms manufacturers have so much power in Washington and benefit so much?

 

M. Gaetz: I'll say it explicitly, I do not believe we would have our level of involvement in Ukraine at where it currently stands if it were not for the drawdown in our activities in Afghanistan. These defense contractors need tens of millions of dollars in new programs every month just to justify their overhead. They're that big. And so, you've got a situation where the supply and demand economy really works against global peace and against the interests of Americans, because the demand is the demand to have somewhere to send these weapons and so, the supply… then, you get a circumstance where policymakers are trying to generate areas that justify it. And it's not only in areas of hostilities. Now you're seeing a lot of that same incentive structure play out where folks roll up to the Hill and give us briefings insisting, oh, all of our stockpiles have been depleted. We've said everything to Ukraine, and all of our stockpiles have been depleted. What does that do? That generates a whole new round of business on the initiative of refilling our stockpiles when the reality is we don't need to send a lot of the stuff over there anyway. And it's quite humorous, Glenn, if you don't mind me saying when I get on these phone calls, with a lot of these Ukrainian defense officials and they start reading off the list of shit that they want – they don't even know how to use a bunch of this stuff. I know that there's just somebody who went and bribed them to make those requests. And a lot of this stuff doesn't even get into the fight. And the defense contractors don't care. They just want to be able to make it, mark it up and sell it, and then they hire these third parties to go bribe Ukrainian officials to go there and make demands on U.S. policymakers. And it's debasing to watch a lot of my colleagues leap over one another, to be the first to insist that they be given everything on the list, regardless of the capabilities that exist to operate it effectively. 

 

G. Greenwald: So, let me ask you about that, the kind of politics of your bill, the war. Back in May, the Biden administration asked for a huge amount to send to Ukraine, which was $33 billion. Your colleagues in both the House and Senate decided, seemingly arbitrarily, to just kind of boost it up by $7 billion. So why don't we make it $40 billion? – kind of rounded up from what the Biden administration asked. On that vote, every single Democrat in both the House and the Senate – from the most right-wing Democrats to the Squad and Bernie – voted yes. It was completely unanimous. There were at least 69 no votes in the House and Senate that came exclusively from your party. Now, I'm looking at the co-sponsors of your bill to cut off aid. I notice that they're all Republicans and not Democrats. Did you attempt to try and attract any Democratic Party cosigners to this bill? And what explains this kind of unanimity on behalf of the Democratic Party, where there was always at least some anti-war sentiment, to just keep sending more and more money to fuel this war? 

 

M. Gaetz: Where did the anti war Democrats go? I remember when the Squad showed up in Washington, D.C., and they were saying the military is racist. Now, they're voting for NATO expansion, for goodness’ sake. So, it's been quite the reversal. 

And I did solicit the support of some Democrats and you know what they said to me? They said, well, we can't look inconsistent and we voted to send these arms, and so, now, we have to vote to continue, to maintain that, and maintain the logistics kits and the supply chains and all the advisors that go along with having this equipment in a theater of hostilities. So, it's a fear of looking inconsistent rather than being in a principled position. But it sort of begs the question, why were they there in the first place? Where is the anti-war coalition in the Democratic Party? Because guess what? I'll work with them and I don't care who it is. I'll work with anyone and everyone, regardless of what they think about me or any other subject, to try to end our involvement in these wars. And in the end, the manner in which this Congress seems to be at the bended knee to defense contractors and lobbyists, and special interests, rather than serving the actual interests of our fellow Americans. And it's no joke when you're playing a game of nuclear chicken with a country like Russia. 

 

G. Greenwald: Yeah, if you look at the left wing, almost every modern democracy in the world, in Germany, in Great Britain, here in Brazil, you find huge amounts of people on the left, including members of the parliament or major political figures, including the newly elected president of Brazil, who are saying it's madness to keep fueling this war. And yet, there is simply not a single Democratic member of Congress willing to say that. It's really bizarre. 

Let me ask you this specific question, obviously, we've been talking about the financial motive in war, the kind of fear that people have of the U.S. Security State, of the armed industry. But it does seem like there is a very kind of obsessive interest when it comes to Ukraine in particular. We've been involved in the micromanaging of that government since at least 2013 when Victoria Nuland was changing the government and picking who should run the country – quite a weird thing for a democracy for that to happen. We know that Joe Biden was so heavily involved in running Ukraine that when Burisma got in trouble, the Ukrainian energy company didn't pay a Ukrainian politician’s son, they paid Joe Biden's son, Hunter Biden, $50,000 a month to sit on their board. President Obama was always saying when asked, why aren't you doing more to confront Russia over Ukraine? He would say, we have no vital interest in Ukraine. There's no oil there. There's no geostrategic importance to that country that we would risk going to war over Russia with. Why is there this obsession among this kind of permanent foreign policy cause in Washington, like Victoria Nuland and her crowd when it comes to Ukraine? 

 

M. Gaetz:  Well, Goldman Sachs observed that Ukraine is the third most corrupt country in the world and the most corrupt country in Europe at the time that they made that assessment. And it's a money laundering mecca. And so, you saw how the Afghanistan War and Afghanistan rebuild really plowed a lot of cash into offshore accounts in Switzerland and in Dubai. And one has to wonder, where will the bounty of the Ukrainian grift end up? Foreign financial centers will benefit from all of the arms deals and all of the reconstruction that is bound to follow this current kind of period of hostility. 

And I think that motivates it. I think that when you have a place with a well-developed infrastructure around money laundering and corruption and kickbacks, it kind of greases the wheels for this type of delivery system. And the great horror is that the people end up getting killed in these terrible ways, in these extended conflicts. 

If my resolution intends to do anything, it's to bring some peace to this country. I don't wish this war on the people of Ukraine. I think it's horrible what's happening to them but I do not believe that the United States government spending over $100 billion there is improving conditions or bringing this matter to any faster resolution. And by the way, when you propose peace, like when Elon Musk proposed a peace plan, you get shouted down like you're some sort of agent of the Russian government, just because you want the killing to stop. And I think we've got to be able to have that level of intelligent discourse to get past the rather dogmatic responses that we've seen thus far. 

 

G. Greenwald: Yeah, but that tactic has been going on for decades, that if you question any U.S. war – in Iraq or anywhere else – you get accused of being a traitor on the side of the enemy. You're pro-Saddam, all of those things. 

Well, let me ask you about this last question, which is what this money could be used for, instead, if your resolution is passed. I praised a tweet earlier today, by one of your Republican colleagues, Congressman Andy Biggs. He said: “The U.S. leads all nations in Ukraine aid – $200 billion sent in about a year. We could have used this money to address veterans’ healthcare, rising crime in major cities, crumbling infrastructure, declining test scores in K-12 and so much more. We're getting taken advantage of”. 

Are those programs that he named that could be funded with that money, programs that you would support funding if your resolution succeeded? 

 

M. Gaetz: Well, sure, There probably wouldn't be the top of my list. I would start with our own border with just a fraction of the amount of money that we have sent to Ukraine. We could totally secure the U.S.-Mexico border and do a lot of internal enforcement of our immigration laws to get people who have active deportation orders on them – and there are more than a million of them walking around our country freely now – to get them out of our country. And I think that would be a priority that would advance the interests of my fellow Americans. But I even asked the military that precise question, Glenn. I asked Admiral Harris, who's just, I say just retired from the military, was leading the entire Indo-Pak command. And I asked him, I said at war, Harris, if I gave you $100 billion to confront and deal with the Chinese threat, how would you use it? And he said with that amount of money, we could literally secure every inch of U.S. infrastructure, every American, and every business from Chinese cyber-attacks. We're going to have to deal with those cyber-attacks for now, and generations to come. We could have done a lot more protecting our homeland than protecting the sovereignty and borders of a country oceans away. 

 

G. Greenwald: Congressman, congratulations on having your name cleared today from this unjust cloud that's been hanging over it for way too long. And good luck with your resolution. And we really appreciate the time that you took to talk to us. Thanks a lot. 

 

M. Gaetz: All right. Thanks so much. 

 


 

So, it's not every day that we get to bring you what is unqualified good news, but we're happy to report that we're able to close our show this evening by doing exactly that. There was a very favorable and, I think, an important ruling issued today by a judge in the Southern District of New York that struck down as unconstitutional, under the First Amendment free speech guarantee, a newly enacted law by the state of New York, enacted just last year, that purports to dictate to social media companies how they are required to treat complaints about, quote-unquote, “hate speech”. 

The decision that struck down this law as unconstitutional, the judge who issued the ruling, the context for how the suit came about and the rationale for the ruling, I think, are all very important to examine, what we will do pretty quickly. But before we do, let me explain to you the context of how this lawsuit was brought about. 

As I indicated last year, the state of New York is trying to find ways to deal with what they regard as the problem of too much free speech on the Internet. That is absolutely a major concern of power centers all through the West. How is it that we can permit people to speak freely on the Internet, given the dangers it poses to our powers? In the parts of the world that don't pretend to be democracies, like Egypt and the United Arab Emirates and Singapore and many other places, they just adopted laws years ago that said it was criminal and illegal to publish anything online that we regard as hateful or inciting of violence or that we think is fake news and we have the right to order that removed and the people who posted it, imprisoned.  And those are the kinds of countries you would expect to see that sort of authoritarian power and those restrictions on free speech. 

In the West, it's becoming an increasingly common belief that there's too much danger from allowing free speech on the Internet and something needs to be done. The problem for the United States, where that belief is growing rapidly and has taken hold of most of American liberalism, is they have this thing called the First Amendment that if they're in government, provides a pretty significant impediment to how they can go about doing that. And they become increasingly creative and inventive and try to find ways. So, the New York state legislature, at the behest of the attorney general, Letitia James, and the governor, Kathy Hochul, as a Democratic-run state, decided they would pass a law that wouldn't tell social media companies what they had to do with “hate speech” because they know that would violate the First Amendment. Instead, they purported to say, “You are required to tell your users you take hate speech complaints seriously. You're required to create a method and a system by which people can complain and to be transparent about how it is that you're going to handle this”. 

And Rumble, recognizing that that is a threat to their main goal as a platform, which is to allow free speech to thrive on the Internet – the law was very clear that its real goal is to stop the publication of what the politicians in New York State regard to be hate speech – sued the state of New York, along with Eugene Volkov, who is a long time law professor and blogger in Locals, the platform, here on Rumble, that's for community building and the like. Their argument was that by forcing us what to say about hate speech and how we handle it, they violated our free speech rights. 

I think it's very important to know – and I'm saying this as somebody who obviously is on Rumble and who believes in Rumble as a cause, but has no financial stake in Rumble, I'm not a shareholder in Rumble, I don't have any stock options in Rumble, I have no interest financially in promoting their company or in saying anything good about them, in fact, I'm totally free to report negatively on them if I want but, as I've explained before, I'm here because I believe they really are devoted to these causes – they have been bringing lawsuits, that they're paying for, to vindicate the causes they say they believe in. 

Just last July, I reported on a major win that they had in their lawsuit against Google. They're suing Google because Google is clearly manipulating their search engines to bury Rumble’s content or any other content that competes with their other companies, including YouTube. I've explained before, I've had the experience when I go to look for my own Rumble videos, unless I know the exact title, it's almost impossible to find it using Google. Almost always, the YouTube version of that video comes up way before the Rumble one does, even if it has far fewer views. There's no question they're doing that. And Rumble won a big victory when a judge in the federal court refused to dismiss Google's lawsuit, ordered it to go to discovery and now Rumble is getting a lot of information that was previously unknown about how Google manipulates search algorithms and search engines to bury information that doesn't want seen and promote the information it does. 

In addition to that, as I've talked about before, in the EU, it is now illegal – illegal – for any platform to host and to be heard by Russian state media like R.T. and Sputnik and the like. And even though YouTube is not a European company, out of fear, they obeyed and kicked those Russian media outlets off of YouTube. Rumble said “We are not going to do that. We are not going to decide for adults what they can and can't see. If you don't want to listen to R.T. don't go and listen. But if you do want, we're going to keep them on our platform”. The French government said to Rumble: If you don't immediately take off these websites and make them unavailable in France, that we don't want our citizens to hear, you will no longer be allowed access to the French market. And Rumble said, we'd rather lose access to the French market than obey your censorship demands because once we start having foreign governments tell us what we can and can't platform, the entire purpose of our website, which is to foster free speech and free discourse and free inquiry on the Internet, which was its original purpose, will be destroyed. 

So, they made the choice to lose France rather than succumb to these orders. Another thing that Rumble did is, even though they have an outlet for fewer resources than Facebook and Google and Twitter and TikTok, Instagram, and the like, they sued the state of New York. 

And here you see the Reason Magazine article, from June of last year, announcing the new New York law. The headline was “New New York Law Aimed at Getting Social Media Platforms to Restrict Hateful Speech.” As soon as that law was enacted, Rumble sued, along with Eugene Bullock, and, today or yesterday, rather, a ruling was issued. And it's really interesting. They sued in the federal district of the Southern District of New York, which is where Manhattan is. They sued the attorney general, Letitia James, in our official capacity as New York attorney general. And this ruling was issued by an Obama-appointed federal judge, Andrew Carter, that agreed with Rumble's argument that the law is unconstitutional under the First Amendment and therefore issued a preliminary injunction enjoining the law, meaning the law cannot be enforced. 

What's really interesting about Andrew Carter is that he wasn't just appointed by Obama, but he is really clearly a man of the left, a lawyer of the left. Obama appointed a lot of prosecutors to the federal bench. He appointed a lot of corporate lawyers. This is one of the rare examples where Obama appointed somebody who was actually a legal aid lawyer, somebody who works for both the state and the federal agency that provides free legal counsel to people who can't afford legal counsel when they're charged with crimes. That's almost always people who have a left-wing ideology doing that. Not always, but mostly. He clearly has a lot playing background jurors potentially. And that's what makes this ruling, that the First Amendment does not permit laws like this, so much more valuable. That's not from a Trump judge or a George Bush judge or a Reagan judge that could be easily dismissed as some kind of fascist ideology or whatever. 

Free speech is something that all federal judges should be protecting and not only did he rule that they were in favor of Rumble against New York. Listen to the first, very first paragraph of his ruling. This is the core idea he's endorsing in this decision. That absolutely is the animating idea of the First Amendment, 

Speech that demeans on the basis of race, ethnicity, gender, religion, age, disability, or any other similar ground is hateful; but the proudest boast of our free speech jurisprudence is that we protect the freedom to express “the thought that we hate”. Matal v. Tan, 137S CT 1744-1764 (2017). (Ruling from U.S. District Judge Andrew L. Carter Jr. Feb 14, 2023). 

 

And he's quoting a 2017 Supreme Court case. 

He begins his decision by saying, of course, hate speech by definition is hateful, especially, if you define it in this narrow way as demeaning people based on their race, ethnicity, gender, religion, age, disability, or other similar grounds. But it doesn't matter if you like ideas or if you think they're hateful. The whole point of free speech is that it bars the government from restricting, even speech and thoughts that we hate. That's the whole point of it. If all that happened under the First Amendment is that speech that the majority likes was protected, it wouldn't be necessary. Nobody ever seeks to censor ideas held by the majority, ideas held by the powerful. The \ targets of censorship are always marginalized people, dissidents, people who hold views that only a minority support. And he began this decision by reminding everybody, and in a very emphatic way, at the point of the free speech clauses, not to protect popular speech, but unpopular speech, including hate speech. 

The decision itself is pretty technical, but I'm just going to explain to you nonetheless what it was. The law that New York passed is called the Hateful Conduct Law and it essentially went out of its way, as I said, to avoid requiring social media platforms to delete anything that the state regards as hate speech because they knew no law like that would survive constitutional scrutiny. What they did instead was try to do an end run around the Constitution by saying all we're doing is requiring you to create rules for how people can complain about hate speech and to express your condemnation of hate speech and to make clear that you will have an open process. 

And the reason Rumble and Eugene Volokh knew that this was unconstitutional, and the judge eventually ruled it was too, was because the real purpose of it is evident. It's even explicit. It's to eventually force these companies and pressure these companies to ban speech which the state regards as hateful. That's the problem with hate speech. It means different things to different people. If a diversity counselor comes into a corporation and tells people that white people are inherently more violent or more imperialistic or more prone to colonize, is that hate speech based on race? If someone says that men are more likely to resolve conflict through aggression and war, or more likely to use their force to impose their will on women and force them to engage in sexual acts, is that hate speech based on gender? If someone says that conservatives are all fascists, is that hate speech based on ideology? It's all vague and ambiguous and amorphous by design. That's what makes it so powerful to put censorship authorities in the hands of the state. 

And so, the court went through and I won't I look at every one of these clauses, but essentially broke down the law and said why it is that this law cannot be tolerated. And then, in the end, it said this, 

In the face of our national commitment to the free expression of speech, Listen to that. In the face of our national commitment to the free exercised expression of speech, even where that speech is offensive or repugnant, the Plaintiffs’ motion for a preliminary injunction prohibiting enforcement of this law is granted (Ruling from U.S. District Judge Andrew L. Carter Jr. Feb 14, 2023).

 

 It concludes by saying that the law cannot be enforced because the law is clearly designed to eliminate speech that, no matter what you think of it, is within the bounds of the First Amendment. 

It's a very important ruling because the states around the country are absolutely looking for ways to prohibit the expression of speech they just like while trying to avoid the First Amendment's prohibition. The fact that this comes from a left-wing judge, a judge in the very influential Southern District of New York, that it's done in Rumble’s favor, against the state of New York, is a very important precedent. It's a very positive development, no matter how you look at it. 

I think we owe a lot of gratitude to both Eugene Volokh, the longtime law professor who brought this lawsuit, in addition to Rumble – they paid out of their own money to vindicate the free speech rights for all of us. And this is why my show is here. And my journalism goes on places only like Substack and now Locals. Because the internet is not valuable – to the contrary, the internet is harmful – if it becomes a venue of espionage, by the state against us  – track ways to track what we're doing – or if it becomes a weapon to disseminate propaganda by banning dissent. The cause of creating a space on the Internet where free inquiry and free speech can continue to thrive, to me is one of the most important causes, if not the most important. When we think about things like independent media, the ability to challenge establishment orthodoxy to compete with the media corporations that have propagandized the country, that could only be possible if free speech constitutionally is protected. If lawmakers and politicians are forced to keep their hands off the Internet and if companies are genuinely committed, even at the cost of their own self-interest, to devoting themselves to creating places on the Internet, not just any places, but places with a large reach where free speech and free expression are protected. 

I'm really proud of the fact that the platform where I have my show is a company that continues to do this. This is not a victory only for Rumble: it is a victory for the entire country, for all citizens that believe in free speech. 

Obviously, we will continue to follow this. There's a likelihood that the state of New York will appeal it. There will likely be other laws like this, that are designed to work around this court ruling but this court ruling is going to make much more difficult future attempts to impose censorship over the Internet. And for that reason, we think it's a cause for celebration but also, given how the corporate media has almost entirely ignored this ruling, even while they reported extensively on the law itself, we thought it was important to report to you on exactly what this ruling is and what its implications are. 

That is a happy way to end the show. It's, as I said, not often that we get to deliver to you unqualified good news, but this certainly is that. 

 

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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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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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