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The Truth About American Hegemony | The Ezra Klein Show

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The Truth About American Hegemony | The Ezra Klein Show

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0:00

At Davos last week, Mark Harney, the

0:02

prime minister of Canada, gave a speech

0:05

that sent shock waves through the

0:08

international community.

0:10

>> Let me be direct. We are in the midst of

0:13

a rupture, not a transition.

0:14

>> It was a remarkable speech by a Canadian

0:17

prime minister.

0:17

>> It's like a moment of clarity.

0:18

>> It received a very rare standing ovation

0:21

with praise not only in Davos, but

0:23

around the world. To understand why this

0:25

speech this has been such an

0:27

international relations earthquake, I

0:30

think you need to understand something

0:31

about him. Carney is as establishment as

0:34

you get. He is a technocrat's

0:35

technocrat, former governor of the Bank

0:37

of Canada, former governor of the Bank

0:39

of England. for Carney, this kind of

0:43

figure to come out at Davos in front of

0:45

all those assembled government elites

0:48

and business elites at this moment when

0:50

Trump is threatening tariffs on Europe

0:52

in order to take over Greenland. For him

0:54

to come out and say that we are living

0:56

in a rupture, that the old order in

1:00

which you could have values-based

1:02

relationships with the United States of

1:04

America is over. for Carney, the leader

1:07

of Canada, America's both geographically

1:11

and in many ways spiritually closest

1:13

ally to say this, that is a break point.

1:16

I think that's a moment, a week that's

1:17

going to be remembered for a long time.

1:20

Beneath Carney's analysis of what is

1:21

happening here is an idea I've been

1:23

following for some time called

1:25

weaponized interdependence. And this

1:27

idea comes from the international

1:29

relations theorists and professors Henry

1:31

Ferrell and Abraham Newman. It's in

1:33

their book, Underground Empire: How

1:35

America Weaponized the World Economy.

1:37

And the basic concept is that over time

1:40

in this globalized woven together world,

1:44

there are a lot of ways in which being

1:46

on American technologies and in American

1:49

financial markets gave us leverage. And

1:53

that was fine for our allies, for the

1:55

world, so long as we didn't use that

1:57

leverage too much. But now we've begun

1:59

to make that a way we can harm them, a

2:04

way we can extort them, a way we can

2:07

control them. And that has really

2:09

changed the nature of the bargain. Henry

2:11

Fail is an international relations

2:13

professor at Johns Hopkins University.

2:15

He is author, as I mentioned, of

2:16

Underground Empire and of the Excellent

2:18

Substack Programmable Mutter. I want to

2:21

have him on to talk me through Carney

2:23

speech, these ideas, and if the old

2:27

order is ending, what that might mean

2:29

for the one to come. As always, my

2:32

email, Ezra Kleinshowny Times.com.

2:40

>> Henry Frell, welcome to the show.

2:42

>> I'm delighted to be here.

2:43

>> So, I want to begin with this clip of

2:45

Mark Carney, the prime minister of

2:47

Canada, speaking at Davos.

2:49

>> Let me be direct. We are in the midst of

2:52

a rupture, not a transition.

2:55

Over the past two decades, a series of

2:57

crises in finance, health, energy, and

2:59

geopolitics have laid bare the risks of

3:02

extreme global integration. But more

3:04

recently, great powers have begun using

3:07

economic integration as weapons, tariffs

3:10

as leverage, financial infrastructure as

3:13

coercion, supply chains as

3:14

vulnerabilities to be exploited.

3:18

You cannot live within the lie of mutual

3:21

benefit through integration. When

3:23

integration becomes the source of your

3:26

subordination

3:28

>> when integration becomes the source of

3:30

your subordination. What is he saying

3:32

there?

3:33

>> So in a weird way it feels to me like he

3:36

is channeling things that Abe Newman and

3:38

I, my co-author on this book Underground

3:41

Empire started saying six or seven years

3:43

ago. And here I'm not claiming that we

3:44

are the people who discovered it. But

3:46

this was not the consensus when we were

3:48

writing and it has become a new kind of

3:51

consensus now which is if we think about

3:53

globalization. Globalization back in the

3:55

'9s and the 2000s. It seemed like it was

3:58

an incredible opportunity to build a new

4:01

kind of economic world in which markets

4:03

dominated rather than geopolitics. So

4:05

you have all of these ideas floating

4:07

around about we're past the world of the

4:09

Cold War. We're past the world of the uh

4:12

Berlin Wall and we're now in a new world

4:15

where it is going to be possible to

4:17

rebuild politics around market

4:19

competition. You don't have to worry

4:21

about your neighbors invading you. You

4:23

don't have to worry about all of these

4:25

political risks. Instead, you just focus

4:28

on being the most competitive market

4:29

that you absolutely can be. And this

4:32

leads to enormous amounts of integration

4:34

of the sorts that Carne is talking

4:35

about. So, we see supply chains becoming

4:38

global. We see these financial systems

4:40

which are focused on the United States

4:42

becoming uh means through which people

4:44

can send money back and forth without

4:47

really worrying or thinking about the

4:48

politics behind it. And we see this

4:51

entire plumbing for this new global

4:53

economy becoming established. And all of

4:55

this seems great and awesome and

4:57

functional. But we're in a world now

4:59

where as Carney says the plumbing has

5:01

become political. All of these means

5:04

that we use to integrate the world, all

5:06

of these financial systems, all of these

5:08

uh trade and production systems are

5:10

suddenly being turned against countries.

5:13

And the United States, which actually

5:14

has been doing this in a much quieter

5:17

and uh perhaps less threatening way to

5:19

many countries at least for decades, is

5:22

in fact the country that is pushing this

5:24

the hardest. G

5:24

>> give me some examples of this. Give me

5:26

an example prior to Trump of the United

5:28

States doing this in a quieter way and

5:31

then give me an example of what Carney

5:33

is talking about now when he says that

5:36

great powers are using economic

5:37

integration as weapons and he clearly

5:39

means us.

5:40

>> Okay. So this uh really began post

5:43

September 11th, 2001 when the United

5:46

States it looks at this attack that has

5:47

happened and it tries to figure out what

5:49

are the ways in which terrorists have

5:51

been able to take advantage of this

5:53

poorest international system of

5:55

economics which allows them to send

5:57

money back and forth uh and they begin

6:00

to start thinking about what kinds of

6:02

tools can they use to stop it. So this

6:04

really begins I think it really begins

6:06

to get going with a measure against a

6:08

bank which is very closely associated

6:10

with North Korea. Uh the United States

6:13

begins to target that bank and uh so you

6:16

see suddenly when that happens a massive

6:19

flight of money away from the bank the

6:21

bank nearly goes under.

6:22

>> When you say they target that bank slow

6:24

down a little bit.

6:24

>> Yeah.

6:25

>> What do they do?

6:26

>> So here okay so there's this whole

6:28

complicated system and let me just

6:29

explain maybe the best place to start is

6:31

with the dollar. So if you are an

6:34

international bank, you need to have

6:36

access to the US dollar because the US

6:38

dollar is the lingua frana of the global

6:40

economy. This is the uh currency that

6:42

everybody exchanges in and out of. That

6:45

means in practice that you have to have

6:48

correspondent relations with a bank in

6:51

the United States, you are effectively

6:53

you become subject indirectly or

6:55

directly to US regulation. Because if

6:58

you don't have these banks which allow

6:59

you to uh these banking relations which

7:01

allow you to clear transactions through

7:04

US dollars, you effectively stop

7:05

becoming an international bank. And so

7:08

this then means that you are in a world

7:10

as the United States discovers where it

7:12

is possible for the United States to

7:15

effectively declare that a bank or

7:17

another institution is a pariah. That

7:19

nobody should have anything to do with

7:21

it. And any bank which wants to maintain

7:24

access to the US dollar which means most

7:26

banks in the world is going to respect

7:28

that demand from the United States. So

7:30

suddenly the United States is able to

7:32

turn the entire global banking system

7:35

into a means of power projection and it

7:38

uses this first against uh terrorists

7:40

obviously then against rogue states such

7:42

as North Korea. But we begin to see over

7:45

the uh intervening years that we get

7:48

more and more ambitious. And I think

7:49

that the most important example of this

7:52

came with respect to Iran. And so the

7:54

Obama administration uh very carefully,

7:57

very very slowly uh ratchets up

8:00

pressure, withdrawing the ability of

8:03

Iranian banks to use the international

8:06

system and also ratcheting up pressure

8:08

against any other uh any other bank in

8:12

any other country which wants to touch

8:14

the Iranian system in any way. And Iran

8:16

suddenly discovers that it cannot get

8:18

paid for its oil anymore. It is having

8:21

to barter. It has it has to barter for

8:23

say we will send you x amount of oil and

8:26

in return we will get 500 tons of grain

8:29

or we will get a uh crate load of

8:31

zippers. All of these uh crazy things

8:34

that Iran has to do in order to uh try

8:37

and get paid and Iran wants to get out

8:40

from under that. So this I think is a

8:42

good example of how it is that the

8:44

United States is effectively able to use

8:46

this power to cut an entire country out

8:48

of the global financial system. Iran

8:51

does figure out ways around this over

8:53

time. Uh it does especially under under

8:55

the Trump administration begin to figure

8:58

out alternative shadowy payment systems.

9:00

So there are real limits to this. uh but

9:03

uh these techniques are perfected uh

9:05

from administration to administration

9:08

and they're handed on a little bit like

9:09

a baton in a relay race. This is not to

9:12

say that this is uh the product of grand

9:14

planning. At every moment I think these

9:17

are officials who are desperately

9:19

improvising to try to uh do whatever the

9:23

policy need of the moment demands. But

9:25

over time they create this entire

9:28

ramshackle system for coercion which

9:30

turns out to be pretty extraordinary and

9:32

to have pretty extraordinary powers. One

9:34

example of this that was striking to me

9:36

was the Trump administration sanctioned

9:40

you know some top judges and prosecutors

9:42

of the international criminal court

9:44

because of bringing suit against

9:47

Benjamin Netanyahu. Tell me a bit about

9:50

that moment and what happened. So really

9:52

what's happening here is of course the

9:54

Trump administration sees the

9:56

International Criminal Court and all of

9:58

these other international uh

10:00

organizations as being uh in a sense

10:03

illegitimate and this is uh not just

10:05

about Trumpism itself. This has always

10:08

been a tension between the United States

10:10

and this global system. On the one hand

10:12

the United States does want to take

10:14

advantage of it. There are many people

10:16

in the United States who see global

10:18

human rights as being a very very

10:20

important thing that we need to protect.

10:22

But the United States like every other

10:23

country does not want itself to be uh

10:26

constrained by the system when the

10:28

system acts against it. And so the

10:30

United States has never actually signed

10:32

on to the International Criminal Court

10:34

and both Democrats and Republicans have

10:36

been somewhat resistant to it. So then

10:38

when uh the Trump administration sees

10:40

what is happening with Netanyahu, it

10:43

begins to go after these uh

10:45

international criminal court officials.

10:47

And what happens then is that these

10:49

officials, they suddenly find they can't

10:51

use credit cards because credit cards

10:53

all rely upon these payment systems. Uh

10:56

they can't use Google. And so you

10:58

discover that there's this entire

11:00

incredibly boring seeming infrastructure

11:03

of uh institutions of communication

11:05

systems of money that is really what

11:08

underpins our ordinary life. It's

11:10

possible to live without access to these

11:12

systems uh as these uh judges uh who

11:15

have and other officials who have been

11:16

targeted have discovered. But it is a

11:18

real pain. What Carney is describing

11:21

here, what he describes as a rupture,

11:23

not a transition, is not just the use of

11:26

these tools, but the use of these tools

11:28

for something. What to you is the

11:32

rupture he's describing. So here I think

11:34

it is worth going back to this whole

11:36

idea of the uh liberal international

11:39

order and uh the way in which this term

11:42

comes into being. It's really two

11:43

academics. It's uh Dudney and Iikenberg

11:46

who come up with this idea and their

11:48

argument is pretty straightforward that

11:50

the United States is incredibly powerful

11:53

and that that power is actually a

11:55

problem for other countries. If you are

11:58

uh a another country who wants to uh

12:00

deal with the United States, you worry

12:02

that it is too powerful for you uh that

12:05

it might in fact you you you might make

12:07

some concession and then the United

12:09

States decides it wants a little bit

12:10

more and it wants a little bit more and

12:12

you find yourself in a a situation of

12:15

complete uh vaselage of complete

12:17

dependence. And so their argument is

12:20

that the way that the US has worked over

12:22

the uh decades after World War II is to

12:25

create something which amounts to a kind

12:27

of international quasi constitution.

12:29

That is a set of relationships through

12:32

which it binds itself through which it

12:34

effectively makes it more difficult for

12:37

itself to abuse at least its allies uh

12:41

other countries uh which are dependent

12:43

upon it. And so from this perspective,

12:45

the more that the Trump administration

12:47

takes that role, the more that the Trump

12:49

administration decides to use that

12:51

leverage, the less other countries want

12:53

to trust it. And this is why I think

12:55

many people uh like Dudney and

12:57

Iikinbury, people who felt that the

12:58

liberal international order was a

13:00

wonderful thing. why they are uh

13:02

extremely despondent about the world

13:05

because they see from their perspective

13:07

the United States has uh effectively

13:09

having thrown away this massive

13:11

advantage because if you are uh

13:13

self-restrained in this way you actually

13:15

are able to encourage much richer much

13:18

deeper integration with other countries

13:20

and everybody ends up better off as a

13:22

result

13:23

>> you've called what we're doing the

13:24

initification of American power tell me

13:28

about that idea

13:28

>> okay so this is a term which we are

13:30

taking very directly from Cory Doctoro

13:32

who is a science fiction writer and

13:34

general thinker who is uh also I guess a

13:37

a shitster since we have used the sword

13:39

already and so he uh uses this to talk

13:42

about the way in which the platform

13:44

economy works and so more or less his

13:46

argument is that the platform economy

13:48

typically platforms start out as being

13:50

absolutely awesome uh you have these

13:53

wonderful uses which you can make of

13:55

Google search and whatever it is

13:56

beautiful you have incredible access to

13:59

information uh but Over time, the

14:02

platform has these incentives to uh get

14:05

shittier and shittier and shittier uh

14:07

for the uh user. It basically uh it it

14:10

begins to see uh the ways in which the

14:13

users are not the customers. The

14:14

customers are of course the advertisers

14:16

and so you find for example if you're

14:18

using Google these days uh you uh look

14:20

up a restaurant, Google does not want

14:22

you to go to that restaurant's homepage.

14:24

It wants you to click on some affiliate

14:26

link to Door Dash or somebody else. So

14:29

you order via Google rather than uh via

14:31

the uh restaurant. So our argument is

14:34

that uh if you look at the ways in which

14:36

United States power and United States

14:38

hedge money works, it's kind of like a

14:40

similar system. Uh that is that we are

14:43

seeing the increased initification of

14:45

all of these platforms that the United

14:47

States provides that the world relies

14:49

on. So the dollar clearing system we've

14:51

already talked about the way in which

14:52

the US is able to use the dollar in

14:54

order to leverage its advantage against

14:58

other countries. We can also think about

15:00

weapon systems as being uh very similar.

15:02

Once you buy uh for example a fifth

15:05

generation fighter uh aircraft, you are

15:07

not just buying the aircraft. You're

15:09

buying into this extensive platform

15:11

which you need to support the aircraft

15:13

to provide the information that uh

15:15

allows you to uh figure out where to uh

15:18

target uh things. all of these other

15:20

bits and pieces and the United States

15:22

can possibly shut that off. So this is

15:25

one of the big dilemmas that Canada

15:27

faces I think is that Canada is very

15:30

very deeply bought into these platforms.

15:32

Uh Canada is more deeply integrated into

15:35

the United States military structure I

15:37

think than any other ally and suddenly

15:39

it's in a world where it has to make

15:41

some extremely difficult choices. Does

15:44

it try to withdraw from these military

15:45

platforms? What kinds of consequences

15:48

does that have? You know, once a

15:50

platform becomes inchitified, you're

15:51

kind of like somebody trying to figure

15:52

out, do you leave Google or do you stick

15:54

with Google? Do you leave uh Facebook,

15:56

do you stick with Facebook? Uh none of

15:58

the choices that you have are great. I

16:00

want to hold for a minute on the

16:01

motivation of initification, which is as

16:04

I understand um Cory's argument, the

16:06

very simple way to put inification is

16:08

that when these tech platforms want to

16:12

attract people to the platform, they add

16:14

a lot of value to the user. you are

16:16

using early Google search, early

16:18

Facebook, and it really does what you

16:22

want it to do. You almost cannot believe

16:24

how good it is for no cost to you at

16:27

doing what you want it to do. And over

16:28

the time when you're locked in, and it's

16:30

very, very hard to get out. They then

16:32

move from adding value to your life to

16:35

extracting value from you. they, you

16:38

know, cover you in ads and they

16:39

manipulate you and they, you know, draw

16:41

your attention in and and do all these

16:44

things that that that that change the

16:46

bargain. And that Trump and the people

16:49

around him seem to have seen the the

16:52

liberal world order under American

16:54

leadership as something kind of similar.

16:57

That now it is so hard for other

16:59

countries to extricate themselves from

17:01

it, from us, that you can begin to

17:04

squeeze them. And to not squeeze them is

17:08

to leave money, tribute, power on the

17:12

table. You could maybe make Canada the

17:14

51st state. You could maybe have

17:15

Greenland. You can certainly get all of

17:17

these countries to give you better trade

17:19

deals to put money in your pocket.

17:22

But that's all built on this theory that

17:25

they can't leave.

17:28

So how good is that theory? It's

17:31

somewhat good and it's somewhat not

17:33

good. So I think that the United States

17:35

did not set this up as a deliberate uh

17:38

kind of honey trap. This is not a world

17:40

in which the United States decided we

17:42

are going to pull everybody in and then

17:44

once we pull everybody in, we are going

17:46

to figure out ways to uh screw the

17:48

maximum amount of uh money and tribute

17:51

out of them that we possibly can. So I I

17:54

think I but I do think that this very

17:57

much is the way in which Trump and the

17:59

people around him view the world. they

18:01

they do see this as a world in which the

18:04

United States bluntly ought to uh be

18:06

getting tribute. So I had this I

18:08

remember uh 15 years ago I had this big

18:10

fight with the late David David Greyber

18:13

uh which was about whether or not the

18:14

world economy was a tribute system and

18:17

uh he was saying absolutely it is and I

18:19

was saying nope it was not. And I kind

18:21

of feel like the uh last year or so uh

18:24

Donald Trump has been doing everything

18:26

he can to possibly to prove that it is a

18:28

tribute system and to try and figure

18:30

that out. Now there are limits because

18:33

the more that you do this, the more that

18:35

uh other countries uh begin to try and

18:37

figure out ways to use what the uh late

18:40

political scientist uh James Scott uh

18:43

calls the weapons of the week. So they

18:45

begin to resist in different ways. I do

18:46

think we're beginning to see some of

18:48

that happening. Uh the more that you use

18:50

it as well, the less other countries are

18:53

going to be willing to buy into the

18:54

stuff that you offer. And I think one of

18:56

the really interesting test cases that

18:58

is coming up is AI because we see uh if

19:02

if you look at the political economy of

19:03

AI, the Trump administration's approach

19:06

to AI seems to be to uh offer it as

19:09

freely and widely as possible in the

19:11

expectation that everybody is going to

19:13

be so impressed with the uh ways in

19:16

which uh US AI companies have powered

19:18

ahead that they will have no choice but

19:20

to become dependent upon it. And then

19:22

presumably after that at some point the

19:24

US is able to use this as a new means of

19:27

power. It is effectively in control of

19:30

another of the great infrastructures of

19:32

the world. And I'm going to be really

19:33

interested to see whether countries

19:36

actually I'm sort of shrug their

19:37

shoulders and go for it or whether or

19:39

not they decide that actually it makes

19:42

better sense for them to build their own

19:43

platforms even if these platforms are

19:45

worse because at least these platforms

19:47

are theirs and cannot be used against

19:49

them. I want to pick up on the debate

19:50

you had with Greyber for a minute

19:52

because the idea that this liberal

19:54

rules-based world order was something of

19:57

a sham has been around for a long time

19:59

and it's something Carney talks about in

20:01

his speech. I want to play this clip for

20:03

you. We knew the story of the

20:05

international rulesbased order was

20:07

partially false. That the strongest

20:10

would exempt themselves when convenient

20:12

that trade rules were enforced s

20:15

asymmetrically.

20:18

And we knew that international law

20:19

applied with varying rigor depending on

20:21

the identity of the accused or the

20:23

victim.

20:25

This fiction was useful and American

20:28

hegemony in particular helped provide

20:31

public goods, open sea lanes, a stable

20:34

financial system, collective security

20:36

and support for frameworks for resolving

20:38

disputes.

20:39

>> Tell me what you make of that story he's

20:41

telling there. So I think that story is

20:43

exactly right and uh in a certain sense

20:46

this is the story that people I think

20:48

have known suchce that they have known

20:50

that this is in fact the true story. The

20:53

United States has always had a opt out

20:56

option uh to all of the arrangements

20:58

it's made. It has uh always been uh

21:01

willing to uh either implicitly or

21:03

sometimes explicitly pull out when it

21:06

feels that its national interests are

21:08

being significantly hampered by some

21:10

collective deal or arrangement. Equally

21:13

at the same time as Carney says the

21:15

services that the United States has

21:17

provided are useful. So this is uh the

21:19

ways in which you might think about a

21:22

rational hgeimon actually working which

21:24

is on the one hand you provide

21:26

collective goods. some of these

21:28

collective goods and sort of cost you

21:30

significantly. You probably pay for more

21:32

of them than the uh other countries that

21:34

you're protecting but at the same time

21:36

you get more out of the system as well

21:39

because you are able to shape the system

21:42

according to your particular needs,

21:44

desires and wants. So I think that the

21:46

interesting thing about what Carney says

21:49

is uh not that this is something which

21:51

is profoundly new. I and other academics

21:54

uh my colleague Martha Fineore have

21:56

talked about the incredibly important

21:58

role of US hypocrisy in uh securing the

22:02

order for a long while. This is not new

22:05

but the fact that Carney is uh prepared

22:07

to say this bluntly, plainly and openly.

22:10

This is new and this suggests that uh

22:13

whatever order Carney wants to build and

22:16

I think that there are still some

22:17

question uh marks open about how to

22:19

build it. it is uh going to be different

22:22

than the order that was before which is

22:24

not to say that it would not have its

22:26

own hypocrisies its own uh areas of

22:28

self-interest because that is a fact of

22:30

international politics but that it is a

22:33

recognition that the United States has

22:35

gone beyond the realm of hypocrisy into

22:38

the realm of uh pretty naked we want you

22:42

to do uh what we want you to do and if

22:44

you don't do this we are going to punish

22:46

you. But I guess if you're somebody in

22:48

Trump's orbit and when I listen to Trump

22:51

at at Davos in a very strange speech and

22:54

I listen to him more broadly, what he

22:55

always says is look how much we've done

22:57

for you. Look at how much of the burden

23:01

of collective security we've borne and

23:03

and these things that that Carney

23:05

mentions uh open sea lanes, a stable

23:08

financial system, collective security,

23:10

but the American political system is

23:12

still guaranteeing those in that leaked

23:14

signal chat uh where you saw, you know,

23:17

JD Vance and Hexath and everybody

23:19

debating whether or not to to to bomb to

23:22

OpenC channels again. One thing Vance

23:24

says uh in thinking about this you know

23:27

fight against what would be the Houthis

23:29

is that he can't stand that America is

23:30

again doing something on behalf of

23:32

Europe and they're not paying any of the

23:33

cost. So you know from the MAGA

23:37

perspective

23:40

American hegemony is still providing

23:42

these public goods we just want a fairer

23:45

deal for it. So I'd think that the way

23:48

that you would respond to that is that

23:50

the United States does pay a

23:52

disproportionate amount of the cost and

23:53

this has always been a problem with the

23:56

US and NATO in particular. I think that

23:58

there was bipartisan agreement around

24:01

this but also the United States has

24:03

gotten a disproportionate amount of many

24:06

of the benefits from it and also uh when

24:09

it comes to things like NATO it has been

24:11

the uh actor which has been able to set

24:14

the agenda. Uh, you know, there's a a

24:16

saying in uh Ireland, he who pays the

24:19

piper calls the tune. And the United

24:21

States has been capable of calling the

24:23

tune. The Trump calculation seems to be

24:26

that uh we can stop paying and we can

24:29

use our awesome terror and wrath in

24:33

order to uh provide a kind of substitute

24:35

in order to keep on being able to be a

24:38

uh a substantial power internationally.

24:42

uh and I don't think that that actually

24:44

works because its resources are limited.

24:46

If it is fighting a war in this place,

24:48

it is uh deploying the resources that

24:51

cannot be used in other places instead

24:53

of that. And we also have seen this uh

24:55

with Venezuela. It's very clear that

24:57

they had to pull in a lot of resources

24:59

from other places that meant that there

25:01

were other things that they weren't able

25:02

to do in the world at the time. And

25:05

there's also this weird kind of

25:07

disconnect that I see uh for example the

25:09

national security strategy which on the

25:11

one hand does seem to suggest that the

25:13

United States wants to withdraw from

25:15

some of uh its uh role as global

25:17

hegeimon. It wants to focus on really

25:20

controlling the uh western hemisphere

25:22

and sort of the uh notorious so-called

25:24

donro doctrine. But at the same time I

25:26

think the United States still wants to

25:28

be recognized as the 800B gorilla in the

25:31

jungle. It wants all of the awesomeness

25:33

and wonderful things which come with

25:35

that. And you can't do both at once. You

25:37

can't both withdraw from the world and

25:40

expect the world to continue to treat

25:41

you as a hedgeimon at one and the same

25:44

time. And this is the fundamental

25:46

dilemma that I think a lot of the Trump

25:48

administration uh thinking about these

25:51

things uh tries to skirt around and

25:53

doesn't do successfully. Something I

25:55

noticed in Carney's speech is he uses

25:57

the word

25:59

American only once and the word hegeimon

26:03

or hegemany four times and the only time

26:06

he uses American is to specify American

26:08

hegemony. Is that who we are to Canada

26:11

now to to the world

26:14

the hegeon? I think so. And uh so it and

26:18

also it should be I should say Canada

26:20

has always had a slightly weird

26:22

relationship with the United States. I

26:24

spent two years at the University of

26:26

Toronto and it is a wonder you know I I

26:28

had a wonderful experience there but it

26:30

also felt to me a little bit like my

26:32

native country of Ireland back in the

26:34

1970s and 1980s which was uh effectively

26:38

joined into the uh economy of a much

26:41

bigger neighbor the United Kingdom. and

26:44

this feeling of on the one hand uh you

26:46

sort of recognition that this was the

26:48

way that things were but also a

26:50

significant amount of resentment at this

26:53

uh fact of basic dependency. So I think

26:55

that uh that has always been there. What

26:58

I think is different is the sense that

27:00

the dependency is not on a uncaring

27:04

giant to the south who uh is going to do

27:06

things that are not in your interest

27:08

because it simply doesn't know or care

27:10

or recognize. I think that there is a

27:13

worry and a fear that the United States

27:15

genuinely has malign ambitions towards

27:17

Canada. Even if those malign ambitions

27:19

are not directly to be uh acted on in

27:23

the uh near future, uh the United States

27:25

is now actually a risk and a threat to

27:28

Canada in a way that it wasn't. The

27:31

>> one of the first things Donald Trump did

27:32

when coming into office was slap huge

27:36

tariffs on Canada and on Mexico.

27:40

And in doing so, he elected Mark Carney.

27:43

Carney and, you know, the party he's

27:45

part of, Trudeau's party, were going to

27:48

lose the next election. They were

27:49

running far behind a sort of more

27:52

Trumpist

27:53

right-wing populist. And then Trump

27:56

stopped these tariffs on Canada, created

27:58

a nationalistic backlash in Canada. And

28:01

I think very clearly like through the

28:04

election to to Carney now creating this

28:06

you know figure who is beginning to be

28:09

one of the the leaders who opposes him

28:11

on the world stage which is to say that

28:13

there it's not just that we are

28:15

economically integrated but but highly

28:17

politically integrated and that the the

28:21

way Trump is acting is causing

28:25

backlashes and political turbulence in

28:28

other places often in ways that help

28:30

Trump's opponents by uniting the country

28:33

against us.

28:36

I'm curious how you think about that

28:38

dynamic of all this. So, it's a very

28:39

clear dynamic uh and it also is

28:41

something that you saw over the last few

28:43

days in uh Europe. So, when we began to

28:46

see the uh Trump uh Greenland crisis

28:50

really come to a head, that's something

28:52

we uh actually haven't talked about yet,

28:54

which is

28:54

>> Oh, we're getting there. Don't you

28:55

worry, Henry. Yeah. uh but but you saw a

28:58

lot of uh very clear nervousness coming

29:00

from uh people like Nigel Farage who uh

29:03

clearly do not want to be in a world

29:06

where Trump is making these moves

29:07

because if you think about this from a

29:09

nationalist perspective and all of these

29:11

parties which are to some extent uh to

29:14

some extent I'm sort of uh sympathetic

29:16

to Trump they are all nationalists in

29:18

one way shape or form all of them uh

29:21

clearly because they're nationalists

29:22

they are strongly attached to things

29:24

like uh territorial sovereignty

29:26

don't touch me and whatever. And the

29:29

Trump administration's perspective seems

29:31

to be uh not necessarily to want to grow

29:35

these parties, you know, sort of in in a

29:37

uh in a clear way. I think JD Vance

29:39

absolutely would love to do that. But I

29:41

think Trump's uh perspective very often

29:43

is a much more shortterm are these

29:46

people is doing a deal with them in my

29:48

interest or is it not my interest? And

29:50

you saw this, I think most uh

29:52

prominently, of course, was Venezuela,

29:54

you know, where the Venezuelan right

29:55

clearly sees Trump as a savior who's

29:57

going to come in and provide them with

29:59

the backing that they need. And the

30:01

Trump administration's attitude seems to

30:03

be these people aren't powerful enough.

30:05

Let's make a deal with some element of

30:07

the uh existing regime and see where we

30:09

go with that. I want to play you a bit

30:12

of Trump's

30:14

address at Davos, which which was, I

30:15

thought, a very unusual, rambling,

30:18

unfocused uh piece of rhetoric, but I

30:21

want to play you the part where he

30:23

focused on Europe, both America's

30:25

relationship to it and his.

30:27

>> The United States cares greatly about

30:29

the people of Europe. We really do. I

30:32

mean, look, I I am derived from Europe.

30:35

Scotland and Germany,

30:39

100%

30:41

Scotland, my mother, 100% German, my

30:44

father, and we believe deeply in the

30:47

bonds we share with Europe as a

30:50

civilization. I want to see it do great.

30:53

That's why issues like energy, trade,

30:55

immigration, and economic growth must be

30:57

central concerns to anyone who wants to

31:01

see a strong and united West because

31:04

Europe and those countries have to do

31:06

their thing. They have to get out of the

31:09

culture that they've created over the

31:11

last 10 years. It's horrible what

31:13

they're doing to themselves. They're

31:14

destroying themselves. These beautiful,

31:16

beautiful places. We want strong allies,

31:19

not seriously weakened ones. We want

31:22

Europe to be strong.

31:23

>> How would you describe Trump's view of

31:24

Europe?

31:25

>> So Trump's view of Europe is and you

31:28

know there it's sometimes hard to tell

31:30

what is Trump's view. What are the views

31:32

of other people in his administration?

31:34

Because I think that there is a very

31:36

very complicated relationship but I

31:39

think that uh here we see the JD Vance

31:43

version of the argument really coming to

31:45

the four. So the idea is here that uh we

31:47

are together in some kind of a

31:49

civilization implicitly or

31:51

semi-explicitly. This is a civilization

31:53

of white Christian people and uh we need

31:56

to make sure that this civilization is

31:58

strong and this civilization is being

32:00

weakened because Europe is weak because

32:03

Europe is allowing all of these uh

32:04

hordes of uh people who have different

32:07

skin colors who are very often Muslim.

32:09

It is allowing them to come in. And so

32:11

we are going to see the Europe that we

32:13

know is going to be a fun it's going to

32:16

fundamentally disappear over the next

32:18

generation to two generations.

32:19

>> Civilizational eraser.

32:21

>> Yes.

32:21

>> The Trump administration uses in its

32:23

national security strategy document is

32:26

that Europe faces I think it's quote

32:27

civilizational eraser.

32:30

>> What do they mean by that? What they

32:32

mean is that Europe is going to move

32:34

from being a white Christian or maybe

32:38

post-Christian because of course not

32:39

very many Europeans go to church

32:41

anymore. Uh but but a place which is

32:44

recognizably similar at least if you

32:46

look at at a photograph to uh the ideal

32:49

of what the Trump administration would

32:51

like the United States to uh look like.

32:54

It's going to move away from that to

32:55

being a uh a system in which there is a

32:58

majority non-white Europe uh non-white

33:01

non-European uh non-European observe

33:04

back to 10 generations uh population and

33:07

that this is going to be uh

33:09

fundamentally something which is going

33:10

to uh destroy uh their notion of what

33:13

European civilization is. So the idea

33:16

here is that the important alliance

33:21

the affinity is not between you know two

33:24

land masses but between two

33:25

civilizations and the Trump

33:27

administration doesn't recognize their

33:29

view of what civilization should be of

33:32

what America should be and what Europe

33:34

should be in what they think Europe is

33:35

becoming. So that's right and I think

33:37

that this is fundamentally it is a uh

33:40

push back against liberalism. It is a

33:43

push back at least against a certain

33:44

version of liberalism which is about a

33:47

uh about allowing systems where you have

33:49

a lot of people with plural identities

33:52

that this is messy, this is difficult,

33:54

this is uh but this is also an

33:56

incredibly important source of growth

33:59

and of life and of energy and that is

34:01

something that has to some lesser or

34:03

greater extent united uh the United

34:06

States and Europe over the last few

34:08

generations. You know, the United States

34:10

has been a country which has had wave

34:12

after wave of immigration. Many of these

34:15

waves have been seen as problematic. Um,

34:17

sort of I was uh, you know, my my uh my

34:20

equivalent sort of three or four

34:21

generations ago or five or six

34:23

generations ago inspired the no

34:25

nothings. Um, sort of Irish people

34:26

coming in sort of were seen as being a

34:28

fundamental civilizational threat.

34:31

Jewish people were seen as being

34:33

problematic in a variety of ways. We

34:35

still see

34:36

>> are by many members of the Trump

34:37

coalition. Yeah. And uh we and we see

34:40

this happening of course in Minneapolis

34:41

at the moment where uh people who you

34:43

know Somali people are being identified

34:46

and sort of by the Trump administration

34:47

as being uh evil, low IQ, a pirate

34:52

culture.

34:54

Exactly. So this so this so this is not

34:56

this has never been easy but there has

34:59

been at least some reasonable degree of

35:01

consensus and a stronger consensus over

35:03

the last couple of generations that uh

35:05

this is a good thing. That is what I

35:07

think the Trump administration is

35:09

pushing back against. And it also is

35:11

going handinhand with uh work by people

35:14

like Orban in Hungary who uh not only

35:17

share a similar perspective but also I

35:19

think have been extremely influential on

35:22

people such as for example Michael Anton

35:24

who is one of the uh major ideologues of

35:26

this uh way of thinking about the world.

35:28

uh you know Hungary has been pushing

35:30

something like this version of how we

35:32

need to have a a Europe which is uh

35:36

illiberal uh but uh uh you know

35:38

democratic as long as you describe as

35:41

long as you have uh the right

35:43

description of who the majority who the

35:46

people are who the system is actually

35:48

supposed to respond to and these are the

35:50

white native people these are not the

35:52

people who are coming in

35:54

>> so there's this dimension of the Trump

35:56

administration's

35:58

contempt for European government and

36:02

leadership as it exists and then there's

36:05

this side but increasingly central

36:08

fixation on Greenland. Why does Trump or

36:12

his administration but it seems at least

36:13

partly him want Greenland so much? So

36:17

there are a lot of different theories

36:19

about that and I think it's really hard

36:22

to know what goes into his head. I mean

36:24

he you know this could be a specific

36:27

fixation as some people have argued uh

36:29

based on the fact that Greenland looks

36:31

really big in the standard map

36:33

projection of the world. This could also

36:35

be other people have speculated that

36:37

this is something that uh various

36:39

Silicon Valley type people have been

36:41

arguing for a while. people I think uh

36:44

but I think that this is them trying to

36:46

uh in a certain sense retrofit a story

36:48

have said that there is a ton of

36:50

critical minerals of one sort or another

36:52

on Greenland that is going to become

36:54

more accessible as global warming

36:56

continues. I don't have a very strong

36:58

sense of what is actually driving this

37:01

uh this uh real obsession that Trump

37:04

seems to have had. Uh it is it is also I

37:07

think interesting however that he

37:09

actually seems to have backed off on

37:10

this obsession uh rather quickly uh once

37:13

he got real opposition. One argument

37:16

I've been hearing from more Trump

37:19

aligned figures

37:21

is that what we just saw play out was

37:23

classic art of the deal.

37:25

Trump went in with an aggressive

37:27

negotiating position on Greenland. Maybe

37:29

he would use force. He would certainly

37:31

consider using tariffs. He scared the

37:34

hell out of the Europeans and he came

37:35

out with this framework of a deal that

37:38

gave under, you know, America under the

37:41

new telling of the Trump administration

37:42

everything we wanted, you know, at a

37:44

cost of of nothing. How do you think

37:46

about that that justification of

37:48

Trumpism that this is all just

37:49

negotiating and it's just allowing him

37:51

to get better deals than a more polite

37:54

president would? So, this is just I

37:56

think a complete uh delusional uh

37:59

delusional argument. I don't think that

38:01

there is any reasonable way in which you

38:03

can actually say that Trump got

38:06

substantial advantages from whatever is

38:08

going to come out of this that he would

38:10

not have gotten otherwise. So as best as

38:12

we can tell uh this is a deal which is

38:14

being negotiated via uh NATO and this is

38:18

going to probably involve some kind of a

38:21

deeper basing agreement which allows I'm

38:24

sorry the uh administration more control

38:27

over bases in the Arctic area. It also

38:29

provides perhaps some protection of

38:31

mineral rights against being bought uh

38:34

by China or Russia or others. These are

38:37

not things that uh would have been

38:38

difficult to negotiate for. These are

38:41

things that I think the Danish

38:42

government and the Greenland and sort of

38:44

autonomous uh government would have been

38:47

willing to give probably no matter what

38:50

right at the beginning of the situation.

38:52

So we have here, you know, Trump prides

38:54

himself on the art of the deal. One

38:57

important part of the art of the deal is

38:59

being willing to stick to deals so that

39:01

people are willing to make them with

39:03

you. And uh this is I think another

39:05

example of you know in a sense some sort

39:07

of how it is that Trump by keeping on

39:09

pushing pushing pushing. He uh creates a

39:12

world in which nobody is willing to

39:14

trust that he is going to stick by a

39:16

deal that he actually makes. And so uh

39:19

you your uh strength then becomes

39:22

whatever temporary concessions you can

39:25

win and uh that uh you and and over the

39:28

longer term people are less and less

39:30

willing to actually do deals with you.

39:32

>> I want to play you something again from

39:34

from Carney which felt in a way like his

39:39

version of a warning to America.

39:41

>> And there's another truth. If great

39:44

powers abandon even the pretense of

39:46

rules and values for the unhindered

39:48

pursuit of their power and interests,

39:51

the gains from transactionalism

39:54

will become harder to replicate.

39:58

Hegeimons cannot continually monetize

40:01

their relationships.

40:04

Allies will diversify to hedge against

40:06

uncertainty.

40:08

They'll buy insurance, increase options

40:11

in order to rebuild sovereignty.

40:13

Sovereignty that was once grounded in

40:16

rules but will increasingly be anchored

40:18

in the ability to withstand pressure.

40:21

>> This seems to me to connect to what just

40:23

happened with Greenland, which is I

40:25

think the Europeans began to realize

40:27

that if they keep giving Trump what he

40:28

wants, he's never going to stop taking.

40:31

So they began to raise the the price. It

40:33

became clear he would face real

40:34

opposition.

40:36

What what Carney I think is arguing here

40:41

is that the more America acts like this

40:43

the higher the cost of acting like this

40:44

will become. Is he right? I think he is.

40:48

I think he is. So I think we are going

40:50

to see a world in which there are going

40:53

to be a lot of people who want to hedge

40:55

their bets who uh want to uh who are

40:57

going to be much more skeptical about

41:00

deep integration with the United States

41:02

in ways that could allow the United

41:04

States to take advantage of them. So

41:06

this is something that Carney pretty

41:08

clearly and explicitly acknowledges.

41:10

This is going to be uh not just

41:12

expensive for the United States, it's

41:14

going to be expensive for the countries

41:16

that are doing it as well. Canada, if it

41:18

wants to do this, is going to be poorer.

41:21

It's going to have to build its own

41:23

platforms. It's going to have to try and

41:25

figure out ways that it can uh insulate

41:28

itself. And insulating itself is going

41:30

to mean forgoing a lot of the advantages

41:33

of a globally integrated uh economic

41:35

system in favor of uh going it alone.

41:38

And so here this is I think Carney talks

41:41

about middle powers working together.

41:43

His ambition is to create a world in

41:45

which we have Europe, Canada, uh perhaps

41:48

Japan and South Korea, although they are

41:51

uh more dependent on the US in some ways

41:53

uh for security, uh working together and

41:56

trying to figure out some way to build a

41:58

minimal system in which they can all

42:01

have each other's backs. Uh you know,

42:04

the question is of course, is that going

42:05

to be adequate to the uh challenges that

42:08

they face? And I don't think it is. Is

42:09

it going it alone or is it balancing

42:15

hegeons against each other? You know

42:17

quite publicly right before Davos

42:20

Carney made a deal with China lowering

42:22

the tariff on Chinese electric vehicles.

42:25

He made a deal with Qatar that in a very

42:29

public way I think what he is saying and

42:31

and and threatening and even advising

42:33

other countries like Canada to do is to

42:36

make clear to America that if they're an

42:37

unreliable partner well over there is

42:39

China. Well, it's very very clear that

42:42

this does go together with uh making

42:44

deals with China for example on uh

42:46

things like electric cars where uh the

42:48

United States has seen these connected

42:51

electric vehicles as being both a

42:52

security and an economic threat and

42:55

carne is saying we are going to have

42:57

more imports uh whether the United

42:59

States likes it or not but I think

43:01

that's one possible way in which uh

43:04

other countries can respond which is

43:05

hedging between the fact that there is a

43:07

rising power which is China and the

43:10

United States. A second is uh going it

43:13

alone to a greater degree. That is

43:15

building your own independent resources.

43:17

And the third is uh building up the

43:19

capacity for deterrence. So in a certain

43:22

sense thinking about this as if we were

43:24

back in the cold war when the United

43:27

States deterred attacks against it by

43:29

having uh you know the nuclear button.

43:31

Uh the USSR similarly deterred attacks

43:34

against itself um but by having its own

43:36

nuclear and other forces. And we may be

43:38

moving back into a world in which

43:41

whatever kinds of uh commercial peace we

43:44

have may depend upon the capacity of

43:46

other countries than the United States

43:48

to begin to uh leverage these counter

43:51

threats so that uh people like Trump

43:53

back off when uh they are pushing too

43:55

far. One of the I don't know if it's an

43:58

irony or a failure

44:02

of the Trump administration's foreign

44:04

policy is that to the extent Trump had

44:08

in my view a distinctive foreign policy

44:10

when he kind of came into power in 2016,

44:13

it was that he so broke with the

44:15

Washington consensus on China. He was so

44:17

much more anti-China

44:20

than you know the either the Republican

44:22

or the Democratic party was at that

44:24

time.

44:25

and he, you know, began to move in the

44:29

second term the trade war with the world

44:31

into a trade war with China. He then

44:33

backed down from that. But he also seems

44:35

to be driving other countries into

44:37

China's arms. That China becomes the

44:41

only way to in a sense both punish the

44:44

US but also balance against it. Now,

44:46

that's dangerous because then you're

44:48

dependent on China. But Trump seems to

44:52

be ushering in a much more multi-olar

44:55

world by making it much more dangerous

44:58

for our traditional allies to be

45:01

dependent on us on our technology

45:03

companies. I think the uh experience of

45:05

the European Union with Starlink and

45:08

Elon Musk has become very sobering. Do

45:10

you really want to be dependent on, you

45:12

know, an an internet platform run by

45:15

such a mercurial and highly politicized

45:18

American, you know, billionaire?

45:21

You know, I sometimes joke that it's

45:23

hard to know what a like a Chinese

45:25

secret agent who rose to high levels of

45:27

American power would be doing aside from

45:29

this, but it really does seem to me that

45:32

he has strengthened China's geopolitical

45:34

position almost immeasurably.

45:36

>> I think so. So the uh carney bet I think

45:39

seems to be that it is much better to

45:41

have some reliance upon a predictable

45:44

authoritarian who is several thousand

45:46

miles away than an unpredictable uh

45:49

person with authoritarian tendencies who

45:51

is right across the border from you. And

45:53

that is not an entirely stupid uh

45:56

calculation by any means. Equally as you

45:58

say it does involve its own risks. And

46:01

the other interesting thing which I

46:03

still don't have a good sense of what is

46:05

driving it is the extent to which the uh

46:08

within the administration the China

46:10

hawks have uh pretty comprehensively

46:13

lost. So you have seen various people

46:15

being kicked out of the national

46:16

security council. Uh there was news

46:18

suggesting that people in the bureau of

46:21

industry and uh and security which is a

46:23

part of the department of commerce that

46:24

deals with export controls. They had a

46:26

special unit which was devoted to uh

46:29

looking at the uh development of Chinese

46:31

technology and the people from that unit

46:34

have effectively being pushed out. And

46:36

so I think we are seeing on the one hand

46:38

this uh you know the the

46:41

counterproductive policies that the

46:43

United States has which makes it very

46:44

very easy for Xi who is not under any uh

46:48

anybody's understandings a particularly

46:51

nice or benevolent individual. it is

46:53

much easier for him to seem like the

46:56

predictable somewhat safe alternative

46:59

and on the other hand there does seem to

47:01

be this pursuit of the deal or pursuit

47:03

of something which is really reshaping

47:06

the internal organization of the uh

47:09

Trump administration and pushing people

47:11

who are skeptical about China the people

47:13

who might perhaps have been linked to

47:15

Matt Potinger in the Trump one

47:17

administration those people are losing

47:19

and I I I really don't have a good

47:21

understanding of what exactly is

47:22

happening aside the administration to

47:24

make that happen.

47:25

>> One of the framing devices in Carney's

47:26

speech comes from Vaklav Havl, the famed

47:30

Czech dissident who later became

47:32

president. And and let me play this part

47:34

for you. In 1978, the Czech dissident

47:37

Vaslav Havl, later president,

47:41

wrote an essay called the power of the

47:43

powerless. And in it, he asked a simple

47:46

question. How did the communist system

47:48

sustain itself?

47:50

and his answer began with a green

47:52

grosser. Every morning, this shopkeeper

47:55

places a sign in his window. Workers of

47:58

the world unite. He doesn't believe it.

48:02

No one does. But he places a sign anyway

48:05

to avoid trouble, to signal compliance,

48:08

to get along. And because every

48:11

shopkeeper on every street does the

48:13

same, the system persists

48:16

not through violence alone, but through

48:18

the participation of ordinary people in

48:21

rituals they privately know to be false.

48:25

>> Tell me about what Hav meant by that

48:28

story and and what Carney is saying or

48:30

suggesting and invoking it.

48:32

>> Okay, so the way in which I think about

48:33

Havl's story is to uh introduce another

48:36

academic. I'm a professor. So uh

48:38

professors I guess have professional uh

48:41

guild responsibilities. So it's a book

48:43

by a guy uh called Timmer Kuran who's a

48:46

uh somewhat conservative libertarian

48:48

professor in Duke uh called uh private

48:51

truths public lies. And so the argument

48:53

more or less is that this is uh you can

48:56

think about political society and

48:58

authoritarian regimes as being like a

49:00

collective action problem where if

49:03

everybody knew how much uh the uh regime

49:06

was hated, everybody could rise up

49:08

against it. And uh so the regime has a

49:11

lot of incentive to disrupt that kind of

49:14

shared collective knowledge of how much

49:17

the regime is loathed. And one way in

49:19

which it does it is by introducing

49:21

uncertainty. If you have everybody

49:23

having those uh those pictures of the

49:25

dear beloved leader in the shop window,

49:27

then everybody is uh unsure about

49:30

whether everybody else is actually as

49:32

willing to uh act against the uh beloved

49:35

leader as in fact they might be. So

49:37

you're in a certain sense you're

49:39

creating this uh corroded public

49:41

understanding and by doing that you're

49:43

preventing collective action from

49:45

happening. So I think what Carney here

49:46

is suggesting is that we have something

49:49

similar with respect to the way that

49:52

people talk about US hedgeimonyy right

49:54

now. On the one hand we have uh people

49:56

who really hark back to the good old

49:59

days and who still are a little bit

50:01

paralyzed. They don't know what to say.

50:03

On the other hand we have people who are

50:05

frankly calculating that their best uh

50:08

approach is to be craven to put the uh

50:10

sign out in the shop window. So we have

50:12

here um the uh head of NATO calling uh

50:15

Trump daddy and saying that you know

50:17

more or less daddy has to come back in

50:20

and to uh fix things and it's very clear

50:23

I don't think that anybody thinks that

50:25

uh the head of NATO actually believes

50:27

this but he is I'm sort of putting out

50:29

his uh picture and he is demonstrating

50:31

his devotion by so doing. So and this

50:34

means I think there's something

50:35

interesting and weird that happened at

50:37

Davos. So my sense of this and uh I

50:40

wasn't there uh is there are a couple of

50:42

things which have happened. One is that

50:44

I think that a lot of Europeans in

50:46

particular they have not been directly

50:48

exposed to the way in which Trump talks

50:50

and thinks about the world. So I think

50:53

people here in the United States are

50:54

pretty used to it. But from talking to

50:56

Europeans a lot over the last year I

50:58

think they just don't have any

51:00

understanding of how incoherent how

51:03

disconnected his way of thinking and

51:05

talking about the world is. I think that

51:07

speech actually was kind of shocking uh

51:10

to a lot of people who simply hadn't

51:11

realized how bad it had gotten. Also, we

51:14

saw the uh backing down on Greenland.

51:17

And I think this is creating a uh

51:20

greater degree of public uh consensus uh

51:25

to some extent among uh the uh among

51:28

these people who are in some ways

51:30

Trump's natural allies that there is

51:32

something deeply wrong that we do

51:34

actually need to start moving against

51:36

us. And one should remember that when

51:38

Havl was thinking about these things, it

51:40

took a uh couple of decades from Havl

51:44

being a uh a uh grumpy velvet

51:47

underground underground fan who was

51:49

trying to work with other dissident to

51:51

actually getting to be uh the uh

51:53

president of uh the Czech Republic. That

51:56

was a you know that was a long and

51:58

extremely painful period and it was also

52:01

a period where there was obviously a lot

52:03

of push back against Havl and other

52:05

dissidents who were targeted who were

52:07

punished who were humiliated. So I I you

52:10

know my the way that I think about this

52:12

is that uh the uh international you know

52:15

I think that the willingness to

52:17

completely capitulate is uh probably not

52:21

as strong as it was. But we are perhaps

52:23

moving into the uh one battle after

52:26

another realization that uh if you

52:28

actually want to do stuff about this you

52:30

you ought to do it but it is going to be

52:32

difficult. It is going to be hard and it

52:34

is going to be uncertain. my sense of

52:36

Davos and why it felt unusually

52:40

important this year given that it's

52:42

usually treated correctly with contempt

52:45

and why Carney's speech was so

52:48

significant and Trump's speech was so

52:49

significant

52:52

Trump coming in with the threat of at

52:54

that point by the way also force yes

52:57

>> to take Greenland I mean he then

52:59

disavowed that in his speech but but

53:00

initially that was something they were

53:02

keeping on the table threatening the

53:04

tariffs

53:05

And then you had so much of the world's

53:09

power elite, the European leaders,

53:11

business elite, all gathered together,

53:13

the people creating AI, the people, you

53:15

know, in charge of of great industries

53:18

to try to work out in this moment of, as

53:21

Carney keeps calling it, rupture, what

53:23

was really what is really going on.

53:26

And then Carney comes in and says

53:30

publicly in the voice of a very sober

53:32

world leader and a very card carrying

53:34

member of that global elite, right? A

53:36

former central banker, right? Carney is

53:38

not some wildeyed radical. He is as

53:41

Davos as Davos can possibly get.

53:44

It created a moment of

53:47

collective

53:50

admitting collectively admitting what

53:52

was already in some ways known but

53:54

inconvenient to to see right when a when

53:58

a marriage or something goes bad often

54:00

what has happened has already happened

54:02

but then there's a moment where the

54:04

participants see it and Davos seems to

54:07

have been a moment both because of what

54:09

Trump was doing and then in some ways

54:11

Carney creating

54:13

a point of coordination

54:16

in which people who saw it but weren't

54:18

admitting it admitted it. People who

54:20

maybe weren't seeing it saw it. And it

54:24

feels like we've moved through a sort of

54:25

a portal of of understanding what that

54:28

means in terms of action after it is not

54:30

obvious to me at all. But I think it's

54:33

hard to imagine

54:35

going back to the pretenses that were

54:38

operating before. And and by the way,

54:40

that Trump has been trying so hard to

54:42

destroy himself.

54:43

>> Yeah.

54:44

>> Right. This is not like something Carney

54:45

did to Trump.

54:47

>> In some ways, Carney and Trump are I

54:49

think quite agreeing on the nature of

54:51

what America

54:53

now is

54:55

and forcing everybody else to agree with

54:57

it too.

54:58

>> Yeah. And I think that the way that I

55:00

would maybe reframe what you're saying

55:02

very slightly and a little bit more

55:04

abstractly as I say I am a professor is

55:07

that uh what we are seeing here is you

55:10

know there is an agreement about what

55:12

America is but where there is

55:15

disagreement is whether or not America

55:17

can continue to be that and can continue

55:20

to play the uh oversized uh role that it

55:23

has played in the world. So uh and you

55:26

know here you know so I think and I

55:28

should also say because I don't think I

55:29

said it it was a fantastic speech uh you

55:31

know as speeches go speech

55:33

>> yeah carney speech as speeches go this

55:35

was uh not simply a uh emperor's new

55:39

clothes moment it was an extremely

55:41

well-crafted rhetorical way of uh both

55:45

on the one hand pointing to the uh

55:48

pointing to what was happening now but

55:50

on the other hand explicitly admitting

55:52

and I don't think that it would have had

55:54

nearly as much force if it hadn't

55:56

admitted this, explicitly admitting that

55:58

a lot of what had preceded this during

56:00

the so-called good old days had perhaps

56:02

not been as good as they looked. So, I

56:05

do think that you're right, you know, if

56:07

if there is, you know, in a certain

56:08

sense, Carney speech, it's about a

56:10

rupture, but it's also clearly a very

56:13

visible effort to try to create public

56:16

recognition around that rupture from

56:20

which other stuff can perhaps begin to

56:22

happen. But whether or not that stuff is

56:24

going to happen, you know, it really,

56:26

you know, you you recognize that there

56:29

is a that there is a fundamental

56:31

difference in the world and you also

56:33

create collective knowledge that

56:34

everybody knows that everybody knows

56:36

that uh there is something different in

56:39

the world and that provides something to

56:41

build from but it is an extremely

56:43

uncertain uh foundation. Uh the other

56:46

thing that I think is really interesting

56:47

here is the uh this so-called board of

56:50

peace that Trump is building up uh which

56:53

uh does seem to me uh to be doomed to

56:55

failure. And you can think about this

56:57

very cynically. You could think about

56:58

this as being and I I do think that this

57:01

explains maybe 80% of it. It's a little

57:03

bit like uh True Social uh which is his

57:06

uh pet social media service in the

57:08

United States which is a platform

57:11

wrapped up in a special purpose vehicle

57:13

which is intended to uh profit him and

57:16

the people around him but it also is I

57:18

think a kind of a bid for a different

57:22

kind of legitimacy. So my co-author Abe

57:25

Newman who I've mentioned uh together

57:26

with Stacy Goddard has this piece which

57:29

they wrote recently on what they call

57:30

neo royalism which is effectively

57:32

arguing that what Trump and people

57:34

around him are trying to do is to create

57:36

a different kind of international system

57:39

which is based around clan loyalties and

57:42

based around people recognizing that

57:44

legitimacy does not come from the fact

57:46

that they are states but comes from

57:48

their relationship to Donald Trump. So I

57:50

think in a certain sense you could see

57:52

the Carney speech as pointing towards an

57:55

uncertain future and you could see the

57:57

Trump approach of the board of peace as

58:00

pointing towards a project which I think

58:02

is going to be extremely difficult for

58:03

them to actually pull off in which uh

58:07

the power of the world shifts to uh you

58:10

know shifts to people like Trump shifts

58:13

to other authoritarian regimes and

58:15

shifts in a sense to recognition of who

58:18

are the uh big powerful individuals and

58:20

those connected to them and uh in a

58:23

certain sense to a kind of the creation

58:25

of a dark davos. In other words, you

58:28

take, you know, the idea is you take

58:30

this consensus, which is this consensus,

58:32

which is really an elite consensus, and

58:34

you try to push it towards a very

58:37

different form of power, which is much

58:39

more based around sort of the uh, you

58:42

know, the the recognition of personal

58:44

relationships, creations of family

58:46

dynasties, all of these things that we

58:48

haven't seen since the 15th or 16th

58:50

century.

58:51

The Havvel story reminds me of something

58:53

that you've written about building on

58:55

the late political scientist Russell

58:57

Harden and you wrote there that power in

58:59

modern societies depends on social

59:01

coordination. That is just as true of

59:03

aspiring authoritarians like Trump as of

59:06

the people who want to mobilize against

59:07

him. Tell me a bit about this idea of

59:10

power as a coordination problem both for

59:13

you know the authoritarian or the

59:16

hegeimon and for those trying to create

59:19

some kind of alternative.

59:21

Okay. So here the idea and I I should

59:23

say this is building upon other people's

59:25

arguments is pretty straightforward. So

59:27

if you think about a transition in

59:29

political order and you can think about

59:31

this in the US context, you can think

59:33

about this in the global context. It is

59:36

a it is really an effort to try and

59:39

recreate collective knowledge,

59:41

collective wisdom, collective consensus,

59:44

everybody's understanding of the way

59:45

things work around a different pattern,

59:48

a different approach of one sort or

59:50

another. And so this creates advantages

59:52

and disadvantages for people like Trump

59:54

uh who in a certain sense you know they

59:56

want to recreate the system around

59:58

themselves and around their own desires.

60:01

Their advantage is uh if they are in

60:03

charge as the United States uh is in a

60:06

certain sense, it does have power in the

60:07

global system. If you're in charge, I'm

60:09

sure as Trump is domestically, if you're

60:11

capable of getting goons to do your uh

60:13

stuff for you, you are able to frighten

60:16

and to terrorize people and you're also

60:18

able to offer people incentives to get

60:20

on board. Uh so what you want to do is

60:23

to create a world in which everybody

60:25

knows that the uh sensible strategic

60:28

thing is to uh join the Trump coalition.

60:32

You want to create a world in which this

60:34

becomes just the general consensus.

60:36

Everybody knows that this is what you

60:37

want to what they what they ought to do

60:40

if they actually want to prosper and

60:42

succeed and have any chance. And so you

60:44

um sort of you you try to organize the

60:47

world around this. Equally, the problem

60:49

that you face is that the uh more that

60:52

you're capable of using this violence,

60:54

uh the more that you're capable of using

60:56

these uh tools, the more that people

60:58

will be nervous that if they sign on to

61:00

your side of the uh bargain, they are

61:02

going to uh perhaps delay their

61:04

punishment, but they're going to end up

61:06

being uh comprehensively uh screwed over

61:09

at some later stage in the process. So,

61:12

that is the strategic dilemma that

61:13

you're trying to solve. You're trying to

61:15

on the one hand bring people in. On the

61:17

other hand, you're trying to reassure

61:19

them that if they are brought in uh that

61:21

they are not themselves going to become

61:22

victims some way down the line. Uh the

61:25

other side of the thing that uh both the

61:27

world and that uh that that the uh

61:31

opposition in the United States have

61:33

going for them is that uh Trump is not

61:36

particularly good at this game of uh at

61:40

this game of sort of persuading people

61:41

on board and then sort of persuading

61:44

them that they will sort of get what

61:45

they want out of him. He is in a certain

61:47

sense you know sort of his short-term

61:49

transactionalism I think works very

61:51

heavily against him. Uh and I think you

61:53

see this for example sort of the best

61:55

example I think I I see of this is the

61:57

law firms. So you see this one firm Paul

61:59

Weiss which signs on uh very early it

62:02

crumples and sort of gives in uh in a

62:04

way that uh encourages other law firms

62:07

to give in as well. But once it gives in

62:09

it discovers that the deal that it

62:11

thought it was signing up to is not the

62:14

deal that Trump thinks that he wants to

62:15

have. And it's very clear that uh it

62:18

then becomes uh it finds itself in a

62:20

situation where it is going to get

62:21

squeezed and squeezed and squeezed and

62:23

squeezed

62:24

>> and reputationally destroyed

62:25

>> and reputationally destroyed. you know,

62:27

sort of young associates presumably do

62:29

not want to go with the firm who

62:31

capitulated uh and you find yourself in

62:34

an extremely difficult position. And

62:36

this wins short-term benefits for the

62:39

Trump administration, but it wins those

62:41

benefits at the cost of uh undermining

62:45

its long-term ability again to commit in

62:48

a certain sense to restrain itself. And

62:50

uh that is the one thing that is Trump's

62:52

fundamental weakness is he is incapable

62:55

of committing to restrain himself in the

62:57

future. And I think that this is perhaps

62:59

the single greatest flaw and weakness uh

63:02

that uh other people can push back

63:04

against. There's another weakness here

63:05

too or I think it's a weakness. You you

63:08

go back to the piece in which Havvel

63:12

offers up this story and he describes

63:15

the importance of the sign saying

63:18

something that is principled. Right? The

63:20

sign in his story is workers of the

63:22

world unite and that sign is on the one

63:25

hand an expression of obedience to the

63:27

regime but it is also a

63:32

inspiring or at least unobjectionable

63:34

slogan. And Hava writes that the sign

63:37

helps a green grosser to conceal from

63:40

himself the low foundations of his

63:42

obedience at the same time concealing

63:45

the low foundations of power. It hides

63:47

them behind the facade of something

63:50

high.

63:52

What always strikes me about Trumpism is

63:54

the absence of the facade of something

63:57

high, including in this Greenland

64:01

idiocy where he starts this particular

64:04

round by sending a letter to the leader

64:07

of Norway

64:10

saying that because you didn't give me

64:11

the Nobel Peace Prize, which by the way

64:13

is not given out by the government of

64:15

Norway, I don't have to worry so much

64:17

about peace anymore. I'm just going to

64:19

do what America needs and and I want

64:21

Greenland.

64:23

The pure like brutish, narcissistic,

64:26

gangsterish, it made him look terrible.

64:29

And and much of Trump's transactionalism

64:31

has that quality where it is claiming

64:34

this honesty and its corruption

64:37

and its venality, right? Everybody is

64:40

like this. I'm just the one who's

64:41

willing to admit it. But it also creates

64:44

this vulnerability because actually

64:45

people aren't all like that and people

64:47

do cooperate and they do restrain

64:49

themselves and they do try to exist in

64:51

relationships with others and they are

64:53

committed to ideals and values and the

64:55

fact that it's pay me tribute not

64:57

workers of the world unite. I mean

64:59

that's some of where Carney is getting

65:00

his power here too, right? He is doing

65:02

something that is somewhat dangerous for

65:04

him to do, right? He's clearly taking a

65:06

risk by doing it. He's clearly

65:08

committing to certain ideals by doing

65:09

it. And I I do think a weakness of

65:13

Trumpism is that I don't think people

65:15

want to live in that world and he

65:16

doesn't pretend it's a different world

65:17

than it is. He just, you know, like the

65:20

mafia boss tells you to to, you know, to

65:22

pay your tribute and bend the knee or

65:23

something bad's going to happen. I think

65:25

that's right. And I think that also, and

65:28

this is something, you know, so again,

65:29

getting back into domestic rather than

65:31

international politics. So one of the

65:33

key moments in the uh in the fall of the

65:36

Berlin wall are these protests that

65:38

happen in Leipzig in a uh East German uh

65:41

city. And so these protests get bigger

65:43

and bigger and they begin to create a

65:46

collective understanding that in fact

65:49

the regime is wildly unpopular. And so

65:52

Suzanne Lman who's a political scientist

65:54

who wrote this classical article on this

65:56

she argues that what happens one of the

65:58

key things here is that the uh leipig

66:01

protesters they seem like normal people

66:04

they seem like good decent people you

66:07

would like to have as neighbors you know

66:09

so they don't seem you know so the East

66:10

German propaganda is that these are uh

66:13

evil weird freaks that these are um you

66:16

know so these are sort of dissident you

66:18

know they're scruffy they're whatever

66:20

it's the fact that these look like

66:21

normal ordinary people that actually

66:24

make this powerful. So I think what

66:27

we're seeing in Minnesota is we're

66:29

seeing uh ordinary people, you know, so

66:31

it's very very clear that the people who

66:33

are organizing, the people who are

66:36

pushing back, they are neighbors. They

66:38

are people who seem like very

66:40

straightforward, very ordinary

66:42

Midwestern people, uh people who are,

66:45

you know, sort of part of the community.

66:47

And I think that the uh killing of uh of

66:50

of good I think also I'm sorry you know

66:53

she does not seem like somebody who is

66:55

uh strange who is unusual

66:57

>> domestic terrorist in her language.

66:58

>> Yeah exactly. She is not a domestic

67:00

terrorist under any reasonable

67:03

definition of this. So I think so I do

67:06

think that this becomes more and more of

67:07

a weakness the more that you have uh

67:10

people who are out in the streets and

67:12

sort of dragging people off in cars.

67:14

you're, you know, there people are

67:16

getting beaten up, cracked ribs. Um,

67:18

there's this poor, uh, guy who is

67:20

dragged out in his underwear. I think

67:22

that this does create

67:24

>> this child used his bait to trap a

67:27

family.

67:27

>> This child used

67:28

>> now in detention.

67:29

>> Yeah. Yeah. and and you know so on the

67:31

one hand um sort of we do live in a

67:34

fractured media landscape where people

67:36

get you know so people are embibing all

67:39

sorts of uh content which uh supports

67:42

and reinforces their priors so there are

67:44

a lot of people who this does not get

67:46

through to but there also does seem to

67:48

be evidence from the uh polling uh that

67:51

in fact I'm sort of these stories are

67:53

actually connecting with people in a

67:55

different way so I do think that you

67:57

know the p a lot of the power of the

67:59

powerless in a sense comes from the

68:02

creation of a consensus and uh bluntly

68:05

speaking a moral consensus a moral

68:08

consensus that what is happening is

68:09

wicked what is happening is wrong what

68:12

is happening is is uh in some

68:14

fundamental sense evil and I think that

68:16

uh to the extent that the uh what the

68:19

Trump administration is doing gets on

68:21

the wrong side of that either

68:23

internationally or domestically it does

68:25

create a way for people to start pushing

68:28

back There's another framing device

68:30

Carney uses in his speech that that I

68:32

thought was interesting where he

68:34

references a a famous quote of

68:36

lucidities. I want to play it for you.

68:38

>> It seems that every day we're reminded

68:42

that we live in an era of great power

68:45

rivalry, that the rules-based order is

68:48

fading, that the strong can do what they

68:51

can and the weak must suffer what they

68:54

must. And this apherimism of Thusidities

68:58

is presented as inevitable as the

69:01

natural logic of international relations

69:04

reasserting itself.

69:05

>> Tell me about that line from

69:06

Thusidities. What he was describing and

69:10

what the lesson of it was maybe then and

69:11

now.

69:12

>> Okay. So the lesson is very

69:13

straightforward and it is a very

69:15

different lesson than many many people

69:17

take from it. People take this dialogue,

69:19

this famous dialogue in in Susides as

69:23

being evidence of a dog eat dog world, a

69:26

world in which the millions who are

69:28

desperately pleading that the Athenians

69:30

not massacre them. Uh you know they they

69:32

they make this plea and the Athenians

69:35

tell them you know sort of you know

69:36

you're tough luck. We're going to sort

69:38

of massacre your menfolk and we're going

69:40

to take your women and children away and

69:42

turn them into slaves. So this is seen

69:44

as being a kind of a expression of real

69:46

politique. This is not how Tusides

69:49

himself talks about it. It's very very

69:52

clear that the dramatic tension that he

69:55

is describing here is effectively a

69:57

description of Athenian hubris. It is a

70:00

description of Asen's willingness to

70:03

more or less do whatever the hell it

70:05

thinks it wants to do, whatever is in

70:07

its temporary interest in the assumption

70:10

that it is going to be able to keep on

70:12

getting away with it. And uh Tusides

70:15

also he has these uh passages where he

70:18

describes how this hubris really infects

70:20

the entire Athenian population. Uh this

70:23

is in fact a symptom of all that is

70:26

rotten in Athens. All that is rotten in

70:28

this purportedly democratic power. how

70:30

it is that they elect demagogues like

70:33

Cleon and sort of who guides this uh

70:35

notoriously unsuccessful expedition in

70:38

which uh many Athenian uh citizens and

70:41

so they end up themselves being enslaved

70:43

and uh the result is the gradual

70:46

collapse of Athenian hedgemony over the

70:49

entire miniature empire that it has

70:51

created. Athens finds itself being

70:54

occupied by Sparta as it finds its own

70:57

citizens and sort of being enslaved as I

70:59

say and also as it becomes uh broken

71:01

down and becomes effectively uh you know

71:04

so this happens after uh his lifetime it

71:06

becomes a secondary power at best even

71:09

in the Greek citystate system let alone

71:11

in the Mediterranean world as a whole

71:14

>> I think that's a good place to end

71:15

always our final question what are three

71:17

books you recommend to the audience

71:19

>> okay so I've got three books one of

71:20

which is uh directly connected to these

71:23

questions. It's uh by a woman a

71:25

historian uh called Mary Bridges called

71:28

dollars and Dominion. And so it is on

71:30

the one hand it is not about what is

71:32

happening right now. is about what what

71:34

is happening what was happening in the

71:36

beginning of the 1900s uh when the

71:38

United States was trying to build up the

71:40

kind of hedgeimonyy that we've talked

71:42

about during the course of this show and

71:45

uh it is really about how the people who

71:47

are trying to build it up look like some

71:49

of the people who are acting now I'm

71:51

sort of in the twilight of this uh

71:53

period they are uh very self-interested

71:56

they're kind of venal they're building

71:58

on their political connections and they

72:00

also don't have much of a clue of what

72:02

they are doing. So I think that what I I

72:04

take from this is on the one hand that

72:07

uh people you know sort of you know we

72:09

are in a chaotic world that very often

72:12

we tend to overestimate the Machavelian

72:14

cunning of the people who uh we are up

72:17

against. On the other hand even people

72:19

who are trying to bumble through they

72:21

can sometimes actually win they can

72:23

sometimes actually achieve what they

72:24

want to achieve. Second book is a book

72:27

that's not available yet but will be out

72:29

in the United States I think in maybe

72:31

two months. It's by uh Francis

72:32

Spuffford. Uh it's called Nonsuch. Uh so

72:36

Spuffford wrote this incredible book

72:38

called Red Plenty, which uh really I and

72:41

Abe took as one of our models for how do

72:43

you write a complicate a book about

72:45

complicated structures uh using uh

72:48

individuals in order to tell the stories

72:50

of how that those structures work. This

72:52

is a very different book in some ways.

72:54

It's a fantasy set during the uh World

72:57

War II blitz of London. Uh but it's also

73:00

a book about what is happening right

73:01

now. And it's a book that has in some

73:04

really interesting ways uh economic

73:06

systems and how economic systems uh work

73:09

woven through the narrative in ways that

73:11

you don't particularly notice but you

73:13

actually end up uh learning quite a lot.

73:16

And the final book is a book by Tinuan

73:18

which has just come out called the

73:19

score. And it's just a you know I don't

73:22

even know how to begin to describe this

73:24

book. It is about uh making pizza. It is

73:26

about games. It is about the big

73:28

structures that and sort of that shape

73:30

our lives and how they don't recognize

73:32

the knowledge and the wonder and the

73:34

intimacy uh that we have together and it

73:37

pulls together these desperate and many

73:39

other disperate things into this

73:41

incredibly compelling narrative. It is

73:44

just a uh you know it is just a

73:46

ridiculously beautiful book. We live in

73:48

times when it's very easy to just feel

73:51

unhappy and desparing and uh I think

73:54

that this is a book that brings back

73:55

joy. Henry Frell, thank you very much.

73:57

>> Thank you.

Interactive Summary

At Davos, Mark Carney, the Prime Minister of Canada, delivered a remarkable speech declaring an international "rupture, not a transition," which sent shockwaves through the global community. The speech, given by an establishment figure like Carney, underscored a significant shift in international relations, moving away from a values-based order. This rupture is characterized by the concept of "weaponized interdependence," where global economic integration is now used by great powers, especially the United States, as a tool for coercion rather than mutual benefit. Examples include the U.S. using its financial system to target entities in North Korea and Iran, and sanctioning International Criminal Court officials. This phenomenon is likened to the "enshittification" of platforms, where the U.S. is extracting value from a system it once built to add value, treating its hegemony as a

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