Steve Randy Waldman
@interfluidity.com

[new draft post] A theory of Elons https://drafts.interfluidity.com/2025/02/25/a-theory-of-elons/index.html

Steve Randy Waldman
@interfluidity.com

I don't know, but general PPP is a bad measure. Military procurement is dangerously liable to waste and corruption. You have address outputs, not inputs. Europe is far from matching Russia's artillery production. The US too. That's shocking, shameful, surprising to econs who treat GDP as fungible.

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Steve Randy Waldman
@interfluidity.com

Absolutely. I'm not saying some law of history says it will happen. A presumption of inertia and muddling thru says it most likely will not. I am saying it would be a good idea, though, and hoping to participate in the persuading of that! (It's weird to want Germany to rearm while my govt is Nazi.)

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Steve Randy Waldman
@interfluidity.com

We'll see. I'm skeptical "peace" in Ukraine meaningfully happens. Perhaps a ceasefire or armistice, but it may remain obvious there is no genuine peace. Europe, like all of us, needs to address how it curates its information environment. But it's more likely than we are to make progress.

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Steve Randy Waldman
@interfluidity.com

our character flaw.

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Steve Randy Waldman
@interfluidity.com

Military Keynesianism can be a unifying project, though. Like a few years ago the AOC/Sanders wing hoped a Green New Deal might've been. It can coopt a lot of naysayers with capitalist opportunities and good jobs.

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Steve Randy Waldman
@interfluidity.com

i also don't like to be overly prescriptive about language, and find it annoying when people are overly prescriptive of mine. i'd not opt to put Nazis in government, even if i thought they would remedy this annoyance.

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Steve Randy Waldman
@interfluidity.com

if Europeans can get over their debt phobia (or tax the effing rich), a private sector depression would be a great opportunity to devote a few years to building the military they now urgently require.

Steve Randy Waldman
@interfluidity.com

DOGE is the new NSA. #transparency

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Steve Randy Waldman
@interfluidity.com

❤️

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Steve Randy Waldman
@interfluidity.com

on the left you have people annoyed they can't make rent and might die while they appeal their chemo denial. on the right you have people annoyed they'd get in trouble if they called someone "retard" and broadcast it to potentially millions of people. both sides have legitimate grievances.

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Steve Randy Waldman
@interfluidity.com

a thing about cutting medicaid is it's the most cost effective piece of the American health care system, with the possible exception of the VA.

Steve Randy Waldman
@interfluidity.com

i worry Trump's fantasies with respect to the Gaza Strip may create incentives among hopefully credulous Israelis to create a similar circumstance in the West Bank.

Steve Randy Waldman
@interfluidity.com

love the kid the rest of us can wait.

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Steve Randy Waldman
@interfluidity.com

you don’t need retail to take systemic risk. professionals will do it, and they won’t be able to opt out and stay in business. it’s not a matter of personal character or risk attitude. that’s the lesson on Minsky. the prudent are outcompeted by the bold until oops. 1/

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Steve Randy Waldman
@interfluidity.com

panic of 1819, 1837, 1857, 1873, 1893, 1901, 1907. then we get the Fed, a pause, then 1929. decentralized risk aversion, surely we’ve learned this time, has never worked. i think your relying upon it is unwise. /fin

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Steve Randy Waldman
@interfluidity.com

so you think it’s the people not the regulations they put into place? the quiet period post Great Depression, that would have happened anyway, without Glass Steagall, the Securities and Securities Exchange Acts? 1/

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Steve Randy Waldman
@interfluidity.com

i’ll take the other side of that bet. regulation is how institutions and leaders prevent the catastrophes they experienced. there is no ethereal transmission mechanism by which scars become wisdom. recall that the people who lived through WWI and became desperately pacifist superintended WWII. /fin

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Steve Randy Waldman
@interfluidity.com

yes. right now. you are extrapolating decades forward from how firms are operating just as regs are lifting? that strikes me as unreliable.

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Steve Randy Waldman
@interfluidity.com

God bless America.

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Steve Randy Waldman
@interfluidity.com

breaking enforcement of financial regulation won’t immediately break banks, no. but it will leave tinder dry for the next reignition of the Minsky Cycle. it’s like Gramm-Leach-Bliley in 1999. no, it didn’t cause an immediate crisis. but it made possible GFC.

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Steve Randy Waldman
@interfluidity.com

we never did finreg out of some liberal good government ideal. we do it after catastrophes. because when we don’t do it, there are frequent, large, catastrophes. if we are going back to the McKinley era, we also get the Panics.

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Steve Randy Waldman
@interfluidity.com

i don’t think we should assume that at all. we are in a period of expanding chaos, the wheel is in spin. it’s hubris to imagine you know where it lands. the present crew knows only how to wreck, has no clue how to stabilize. they are courting disasters worse than GFC.

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