Can we live with Trump’s chaos?

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Trump is setting out to create chaos. That he's doing so is not an accident. It's deliberate. Can we react in time to save anything of value in the world that we've known?

This is the audio version:

This is the transcript:


Can we live with chaos?

It's an important question because it is very clear that Donald Trump is trying to unleash chaos on the world right now and we really do not know how to manage that.

We have lived in a world where basically people have, by and large, behaved predictably when it comes to things like international relations, international political economy, the way in which they manage the environment in which businesses work, in which supply chains are managed, and so on. But Trump is disrupting everything.

Literally, there is literally almost nothing about the behaviour of the US government at present that is in any way predictable.

Nobody would have expected the US government to basically close down its entire overseas foreign aid activity overnight.

Nobody would have expected that government to issue what are in effect redundancy notices to most of its employees, again overnight.

Nobody would have expected it to demand that Canada become the 51st state of the Union followed by, it would appear, Greenland and now Gaza.

Nobody would have expected it to threaten Panama with invasion if it doesn't give the Panama Canal back.

These are things that are just totally unprecedented. As is the fact that Elon Musk has been given apparent control of the payment system of the US federal government with five of his colleagues, the youngest of whom is 19, and the oldest is apparently 24. They are literally undermining everything that we know we can rely upon.

Now that, I suspect, is deliberate. There is a theory that was put forward, basically by the Austrian School of Economists, that chaos is the precursor of good things. In the chaos, what are called the zombie entities that hold back progress fail, and then, out of the resulting mess, new entrepreneurial activity arises. And I've little doubt at all that the likes of Elon Musk and those people who've written Trump's programme believe that this is where they're going. They think that by literally tearing down the instruments of the US government - describing them as illegal when they clearly aren't; sacking people who are competent just because they are competent, and everything else that is going on - they will end up with a new situation where America is great again. And what is more, US enterprise will be liberated, or so they think, to create new technologies, new businesses and new everything else in a world which will, unfortunately, on the side, be burning itself to death.

But that is a theory for which there is no evidential support. As a matter of fact, human beings are incredibly bad at dealing with uncertainty.

There is a very good reason why so many people suffer with what is called anxiety. It is because they quite literally cannot manage the day-to-day uncertainties that life imposes upon them, through no fault of their own, of course. They are living within the constraints that exist in the world around them, and they find them difficult to manage.

When you then remove those constraints, they don't suddenly feel as though everything is fantastic. By and large, they feel as though their world has collapsed. There are now no certainties left. So, instead of feeling better, they feel worse because there is nothing that they know.

Donald Rumsfeld, who was once the US Secretary of Defense, said that there were three categories of knowledge.

There were known knowns, which were, very obviously, the things that we did know.

There were known unknowns - the things that we did not know but which we could eventually work out or find out or which the passage of time would reveal to be what they were.

And then there were unknown unknowns - those things that we had not yet worked out that we needed to know.

But I'm not sure that Donald Rumsfeld's characterisations, useful as they are in many situations and the reason why he is remembered by so many, really cover the current situation where we're not talking about things that are even within the rational sphere, which is what he was talking about. Now, we're talking about things that are way beyond that rational sphere. We are talking about the behaviour of somebody who is deliberately, provocatively, irrational to the point of creating chaos to secure an advantage.

Now, the cynic might suggest that this is all simply an opportunity for Trump to release information in advance to his friends, who might then be able to exploit it for commercial advantage. And there is a horrible feeling that some of what he's talking about does provide that opportunity. The announcement on Gaza, which came from nowhere - which was that he now wants to take control of it, remove all Palestinians from it as if that is something that is within their right when this is a state, and turn it into what is basically a giant leisure park to be run by US corporations - clearly implies that Trump thinks that everything is about a bottom line, which is purely financial, and in the areas of expertise that he thinks he's got.

But there's something more to it than that. This is not just about commercial exploitation. This is about literally upsetting the order as we knew it.

Now, we shouldn't be surprised that Trump is doing that in some sense. He said he was going to clear the swamp, as he called it, in 2016. He went to Washington. And he very obviously failed to change very much.

Let's be candid, at the end of his period in office, the one thing that was glaringly obvious about what Trump had done was that it didn't amount to much really. Yes, he pulled out of the climate agreement in Paris, settled in 2015. He changed some tariffs. He certainly did give the rich a great many tax breaks that they could not have possibly justified on any economic basis. But in truth, he did very little. And that was one of the reasons why ordinary Americans rejected him because he had delivered nothing for their benefit.

This time, he's trying to have an impact. He's really trying to make a difference. But by doing so, he's creating chaos. And inside that chaos, almost everything that we know ceases to be known.

It isn't even an unknown unknown. It is, actually, simply total chaos. Unpredictable. Beyond conception. We cannot imagine what might happen next. We can't even predict the unknown unknown because it's not on our radars. And that's what's happening. And in that situation, the rest of the world is left gasping, wondering, desperate to try to work out where, and what, and how, and why, and to whom, it should do anything to try to compensate for the behaviour of this madman, and I use the term sensibly, I think, in Washington.

What is he trying to achieve? He is literally trying to achieve that uncertainty. He thinks he'll gain advantage from it.

I don't think he will. But in the meantime, we have to manage that chaos. And there are two ways of doing that. One is to try and pacify him, because he is the President of what has seemed to be the global superpower for the last however many decades, really, since the time of the close of the Second World War.

And, alternatively, we could say, “This man is dangerous.” We could have all the countries of the world join up with each other. We have an organization to do that. It's called the United Nations, but it might be in smaller blocks like the EU or whatever, who say, no, this is not acceptable. We cannot deal with the US on this basis.

We have to put it into isolation.

We have to stand up to it.

For example, NATO exists to defend NATO states, but NATO isn't saying it will defend Canada.

NATO isn't saying it will defend Greenland, although that's part of Denmark, effectively, and Denmark is a NATO member.

So why isn't it doing that?

Why isn't the EU actually standing up and saying Donald Trump's behaviour is utterly unacceptable?

Why isn't the UK Prime Minister calling out Donald Trump for what he is - a totally chaotic madman who's trying to disrupt all our relations and and pick off people, one at a time. Which, no doubt, will be what he does.

Keir Starmer is pretending at present that we might get a deal with the US and the EU won't and I bet he's feeling smug about it. But the reality is that isn't how bullies work. Once he's succeeded against the EU, he'll pick out the UK and bludgeon it as well. If Starmer thinks otherwise, more fool him.

We're dealing with a bully who's creating chaos, who's using that chaos to cudgel the world into believing that he is the power that everybody must obey. And we don't need to do that. We could reject chaos. We could say no to this. We could actually even begin to say, hang on - this is the moment for a new reserve currency. Remember, the BRIC states -  the BRIC states are made up of Brazil, Russia, India, China, and South Africa - have been looking at ways to create an alternative trading currency for the world other than the dollar. This might be the time for the EU, and the UK, and Australia, and Japan, and others to join in with them and say, “Hey, let's get rid of the dollar, let's move on, let's ignore the chaos it's creating, let's get over the disruption.” The idea was created in 1945 by Lord Keynes. He suggested a world currency called the Bancor - BANCOR, for those who are curious - and the US rejected it.

Now we're paying the price for that, because chaos is being created by the fact that Trump, amongst other things, controls the supply of dollars on which the world really does rely for international trade and for debt settlement.

We could create a different environment. But if we're going to, if we're going to manage this chaos, then people have to react. They have to get together, and they have to call out Trump for what he is, a chaotic bully who is trying to bludgeon the world.

Are they going to do that? I don't know. It scares me that, so far, there's very little evidence that they are. Even in the USA, the Democrats aren't describing Trump as what he is - quite literally, the enemy of the people in that country.

So, what hope is there anywhere else when we are a little bit further removed from the chaos he's creating, so far?

We are in a very dangerous situation. Chaos always creates risk. And at the moment the risks could not be higher.


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