Landscape After

Marci Shore: The Taste of Ashes - The Afterlife of Totalitarianism in Eastern Europe

National Review, April 3, 2013 (April 22, 2013 Issue)

Warsaw, Poland, May 1998 ©  Andrew Stuttaford

Warsaw, Poland, May 1998 ©  Andrew Stuttaford

The new dawn that broke over Eastern Europe in 1989 was bright, but the landscape it illuminated was exhausted, a territory of shadows and regret, where hope was jostled by apprehension and old demons stirred. To read some of the accounts of that time and that place is to confront sadness unexpected after the jubilation on the Wall, the Hungarian border, or Wenceslas Square — a melancholy echoed in Marci Shore’s beautifully written, discursive, and by her own admission “deeply subjective” new memoir, a work of well-told history and perceptive reporting that is both less than its title promises and rather more. Either way, it could have done with an index.

Don’t read The Taste of Ashes expecting a survey that covers all of the old Eastern Europe. With the exception of Romania (does that count?), the Balkans do not really feature, nor do Hungary and the former East Germany. There’s a brief excursion to Lithuania, but the other Baltics and the rest of the Soviet far west are notable only by their omission. This is a volume centered on Poland, the Czech Republic, and Slovakia, but quite a bit of what Shore discovered there could easily have been found elsewhere in the region. Thus, in early 1995, she returns to Prague and visits the house of an apolitical elderly couple, all too typical of a generation throughout Eastern Europe whose lives had been impoverished by Communism, but ruined by its fall:

The Velvet Revolution had brought freedoms they had no use for, and in any case had not the money to enjoy. Their whole adult lives they had worked under the Communist regime, and that regime had promised they would be cared for in their old age. Now the social contract had been broken. For their generation the revolution had come too late. For Pan Prokop and Paní Prokopová, it would have been better had it not come at all.

That, of course, assumes that — had it survived — the crumbling economy of Communist Czechoslovakia would have been in a position to deliver on those undertakings, something that is by no means certain.

Shore is an associate professor of history at Yale, a Generation X intellectual of somewhat progressive hue. Thus it may not be surprising that her description of her time in the Eastern Europe of the “post-Communist moment” — doubtless further skewed, in a form of confirmation bias, by the views and experiences of those with whom she chose to associate — comes with a sigh of disappointment. History failed again. The rise of the philosopher king, Vaclav Havel, was not accompanied by the rise of a philosopher people.

There’s prim tut-tutting about the profusion of pornography, and, more justifiably, about the increase in crime and the persistence of the inertia, passivity, and conformity of the “realm of the not possible” that was so much of the Communist state. There is little about the revival in free enterprise, but plenty on the resurgence in national tensions. Shore spent time “working as an intern for an ethnic-conflict project at an American-funded research institute.” Ex-Yugoslavia was in flames, and other long-suppressed conflicts had reemerged into the space that Moscow had once policed. In Romania, Shore investigated tensions between ethnic Hungarians and ethnic Romanians. Fair enough, interesting enough, but all this risks giving an unbalanced impression of a region where most just wanted their lives to be “normal,” an adjective that Shore happens to hear used by a Romanian politician, but that was voiced often in Eastern Europe in those days. When the old regimes fell, achieving a “normality” defined in largely Western terms was a widespread objective.

This idea is reflected in a clever phrase deployed by Shore to describe 1989’s upheavals: “Time, seemingly halted for so long, suddenly leaped forward.” And if the results of the leap have been uneven, they have still been impressive: “To tens of millions of East Europeans the end of Communism brought countless good things — above all a freedom the vast majority of people never imagined that they would live long enough to see.”

But in one sense, time did count, and it counted very much. Shore trains her historian’s eye on the impact of the Communist years, with a keen focus on the telling detail and defining atrocity. And she takes a longer view than most. The rise of the red flag over what her husband, Yale professor Timothy Snyder, dubbed the “bloodlands” in his magisterial book of the same name cannot, she correctly stresses, be seen in isolation. The subtitle of Shore’s book refers not just to Communism but to totalitarianism. In her view, the different stages in the evolution of Eastern European Communism must be read as links in a chain that stretches back to World War II, Nazi occupation, and the Holocaust and, before that, to the Depression, the rise of Fascism, and even to “the dizzying possibilities of the 1920s.”

It is widely recognized that war and Nazi misrule were critical in clearing a political, military, and (perversely) moral space for Eastern European Stalinism, and the link between the war and the troubled decade that preceded it is hardly a secret. The connection to the “unhinging” 1920s is more novel. Shore uses the microcosm of a group of 20th-century Polish poets as a window into the revolutionary fervor that enveloped large sections of the European intelligentsia in a decade happier, luckier Americans remember for jazz and Al Jolson.

Those poets — many of them of Jewish descent — dominated her book Caviar and Ashes and crop up again in The Taste of Ashes. From the later 1920s onward, they exchanged the (to them) ultimately unbearable uncertainties of nihilism for the messianic determinism of the far left, a faith that they — and a number of their associates — were eventually, and crucially, to put at the disposal of Stalin’s Poland. That’s a timetable that suggests to me that the original sin from which the nightmares Shore describes were to flow was the Bolshevik Revolution of 1917. After all, it was Lenin’s blood-soaked millennial upheaval that frightened many into Fascism as a supposed last bulwark of civilization. And it was Lenin’s revolution that drove its followers worldwide into a Communist cult that became dangerously intertwined with Stalinism years before the alibi that was Auschwitz.

To attribute so much of the blame to Lenin fits awkwardly with the emphasis that Shore’s narrative places on Hitler. The Holocaust is justifiably central to our reading of Eastern Europe’s dark 20th century, but its role as Stalin’s enabler needs more nuance than Shore gives it. Equally, notwithstanding the pantomime anti-Semitism (a gargoyle hounding of phantoms) that still, shamefully, persists in these lands, the horrors of the Shoah are less critical — other than for the hideous absence that it left behind — to our understanding of the region today than Shore appears to suggest. In a book billed as wide-roaming, she devotes perhaps too much space to what is now, tragically, only a tiny, introspective, often conflicted minority of Polish Jews. A minority of a once slightly larger minority (the Communists arranged a final anti-Semitic purge in 1968), they stay put in a country that groups of visiting Jewish teenagers — there to mourn at the death camps — regard (Shore recalls) “as a cemetery.”

Theirs is a disturbing, compelling story, but it crowds out a broader discussion of the encounter with a Communist past in which so many Eastern Europeans were profoundly compromised and then, “in a world where all the rules had changed,” left exposed by the opening of files that were either devastatingly ambiguous or, worse, all too clear.

There could have been more too in this book on the appeal of totalizing ideology to so many intellectuals. It is a topic that obviously interests Shore (it surfaced in Caviar and Ashes), but she gives too little attention to a phenomenon that still endures, if more benignly, even in the attitude of those such as the former dissident and Velvet Revolutionary who opts out of the, yes, normal politics of the new era: “To be engaged” is, in his view, “to forgo clean hands,” an abdication that is itself a declaration of absolutist thinking. Shore notes that “dissidence . . . had often been born of communism”: Once a believer, always a believer — all that changes is in what. That dangerous thrill remains.

Shore concludes the book with a tale of meeting a “bright young” member of the Polish new Left, who thanks her for Caviar and Ashes — a work he regards as rehabilitating those Marxist intellectuals of seven decades ago. Shore contradicts him, explaining that their fate is a “tragedy.” “But I didn’t read it as a tragedy!” says the bright young man. “I read it as a romance.”

We have been warned.

Cyprus Sinking

National Review, April 3, 2013 (April 22, 2013 issue)

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It says something about the lunatic calculus of Europe’s monetary union that the Republic of Cyprus, a slice of a Mediterranean rock known mainly, if not always fairly, for sunshine, no-questions-asked banking for murky Russian money, and a history of ethnic conflict, has shared a currency with Germany for the past five years. And it says perhaps even more that in 2010 and mid-2011 its two largest banks passed EU-wide “stress tests” that, revealingly and not so revealingly, hugely downplayed the risks that banks were running with their holdings of government bonds. And, yes, those two Cypriot banks had a lot of government bonds — Greek-government bonds — and a great deal of other business in the hard-pressed Hellenic Republic besides. Wait, there’s more: Together those two banks in 2011 had assets equivalent to over four times Cyprus’s GDP. Overall the country’s banking sector had assets that amounted to more than eight times GDP. What cannot go on, won’t. By the second half of 2011, Cyprus was in the grip of a growing financial crunch.

After securing an emergency loan of € 2.5 billion from Russia, Cyprus’s former AKEL government (“Communists,” but not really) turned belatedly, in June 2012, for help to the bailout-hardened troika of the European Commission, European Central Bank, and IMF. Negotiations dragged. It took the election of the new center-right president, Nicos Anastasiades, in February finally to break the logjam. Anastasiades had a clear mandate to agree to structural and budgetary reforms of the type that the troika was looking for, but he balked at demands that depositors with Cyprus’s banks share in the pain. The longer-term consequences for Cyprus’s banking sector, a mainstay of his nation’s economy, would, he knew, be disastrous.

That was not something that worried Angela Merkel. She was said to have said that Cyprus “must realize its current business model is dead.” Helping out the banks in an offshore tax haven was never a proposition likely to appeal greatly either to the chancellor herself — no friend of international finance at the best of times — or to German voters. They are due to go to the polls in September. After years of bailouts that they never liked and that were designed to rescue a currency that they never wanted, there was an obvious danger that coming too generously to the aid of an oligarchs’ playground would be a handout too far. And so Germany played a major role in insisting that any bailout be accompanied by a “bail-in” that would shift a good part of the cost of a rescue onto depositors with Cyprus’s banks.

The Cypriots caved. The euro-zone nations and the IMF would together provide € 10 billion in new loans, but depositors in Cyprus’s banks would have to chip in too, a grim first in the grim history of the euro-zone bailouts. Deposits of over € 100,000 would be subject to a one-off tax of 9.9 percent. Then came an additional, dangerous twist. Depositors with less than € 100,000 would also be taxed — in their case, at 6.75 percent, a levy that made nonsense of the understanding that, within the EU, such smaller deposits are meant to be insured. That breach of faith could easily be seen as an unsettling precedent, especially elsewhere in the euro zone’s troubled periphery.

The Cypriot leadership probably chose to penalize the smaller fry in this manner because they worried that taking too much from the high rollers risked damaging what was left of Cyprus’s offshore-banking business, but it created such an uproar — on the island and beyond — that its overwhelming rejection by the Cypriot parliament a few days later came as a surprise to no one.

It was back to the drawing board. What emerged on the second go-round a few days later was structured somewhat more sensibly. Bank deposits of less than €100,000 are protected, but Cyprus’s second-biggest bank, Laiki, will be restructured out of existence, quite possibly wiping out all uninsured deposits on the way. Its larger rival, the Bank of Cyprus, has been rescued, but this will come as cold comfort to its major depositors, who are likely to end up taking a shellacking so brutal that there will be little to choose between their fate and that of their counterparts at Laiki.

The good news was that this kept the troika committed to the €10 billion loan. That would, said Anastasiades, be enough to stave off bankruptcy. More modest than most euro-zone politicians, he did not claim that his particular chapter of the currency union’s interminable crisis was over, merely that it had been “contained,” an idea echoed by the fact that draconian “temporary” controls on the movement of money out of the country have been put in place. Even so, the president was being too optimistic. The banking sector is shrinking rapidly. Many other businesses have been badly damaged by the calamities of recent weeks and are now facing the prospect of operating in a near-siege economy — conditions that are, in addition, unlikely to attract the foreign investment that Cyprus will now desperately need. Making matters worse still, money will leak out, despite the controls. GDP will contract sharply, perhaps by as much as 20 percent over the next couple of years. Unemployment will soar.

With the economy in free fall and government debt-to-GDP set to rise to some 140 percent after the bailout, it will take a miracle for Cyprus to avoid a return to the begging bowl — a miracle so far-fetched that even Cyprus’s most senior cleric, Archbishop Chrysostomos II, cannot believe in it. The influential archbishop, admittedly long a strong nationalist, is urging abandonment of the euro, which would trigger the nation’s outright default. That won’t happen for now. Anastasiades has pledged to stick with the single currency. A majority of his fellow citizens are probably behind him in that, at least for the moment, for reasons that are easy to guess. A reversion to the Cypriot pound would mean a devaluation that would wipe out much of what’s left of the republic’s shredded savings, threaten massive inflation, and further disrupt an economy that has already lost its bearings. But the argument is not all one way: There’s a decent case to be made that an eventual exit from the single currency would, for all the pain, be the best possible way of repricing Cyprus back into the global economy. This is a debate that is far from closed.

In any event, the most intense phase of the Cypriot storm appears to have subsided for now, but it has left the euro zone even more battered than before. The two most dangerous threats to the survival of the currency union in its current form are a massive bank run and voter revolt. The disaster in Nicosia has made both more likely.

Let’s start with the banks. Depositors throughout the currency union have now been given a sharp lesson. Deposits above € 100,000 are riskier than they had previously assumed, a message reinforced by a series of comments from various euro-zone leaders who in the wake of the Cyprus deal, despite some hemming and hawing, made it clear that a new template is being put in place. Large depositors, bondholders, and other sources of wholesale money to a euro-zone bank are being warned that they should expect to take a hit if that bank runs into trouble. Properly tweaked, that’s a good principle — moral hazard and all that — but, with confidence in the euro zone and its often undercapitalized banks still shaky, now was not the moment to assert it. That was especially so in a week that had seen the introduction of strict controls on the free movement of capital — supposedly temporary (time will tell; precedents are not encouraging) — within a currency union that had allegedly consigned such restrictions to history.

This will mean that banks seen as vulnerable (or banks located in countries seen as vulnerable) will find it even more difficult — and more expensive — to attract funds. (Well, would you deposit more than € 100,000 with an Italian bank?) This is a perception that feeds upon itself, and, in the right wrong circumstances, can easily set the stage for panic. Even those with (supposedly insured) deposits below € 100,000 will have been left uneasy by those few days in which it appeared that the euro zone’s leadership was prepared to go along with a deal in which smaller depositors took a hit. Since then, there have been repeated reassurances that such deposits are safe. Protesting too much? Just maybe, and there’s no getting away from one uncomfortable truth: Those insured deposits are guaranteed at the national level, not by the euro zone as a whole. A guarantee is only as good as the guarantor. Insured depositors in Greece have, therefore, to hope that, in the event of a crisis, the Hellenic Republic is good for the money, or at least for a third bailout.

One possible, partial response to that part of the problem would be to institute a deposit-insurance scheme jointly guaranteed by all euro-zone members, but that would risk inflaming the source of the second great threat now stirring within the euro zone: democratic politics. One reason that deposit insurance has not expanded beyond national borders is the suspicion, most notably in Germany, that signing up for a broader European scheme would be signing yet another blank check, something that would be not only bad housekeeping but a quick way to antagonize the voters. The bailouts have long been unpopular among the electorate in the euro zone’s (reasonably) solvent north, but the eurofundamentalism of most of its political class has meant that, despite some heroic efforts in Finland, this sentiment has done little to derail the trainloads of cash and commitments heading toward the currency union’s embattled periphery.

That’s not to claim that relatively frugal sorts such as Chancellor Merkel have enjoyed making the handouts. They have not. The tough line that they are taking on Cyprus and, by extension, on banks throughout the euro zone is clearly intended to show that there are limits to their generosity with their taxpayers’ money and to the risks that they are prepared to take with their voters’ patience. In a recent poll, some 26 percent of German voters said they “could imagine” voting for a party that was opposed to the single currency. In late February, a new, achingly moderate center-right party, Alternative für Deutschland, was formed to appeal to just such voters. AfD won’t win, but if it takes even a few percentage points in September’s vote, it could make the election rather closer than Mrs. Merkel would like. She won’t want to give AfD any more ammunition than she has to over the next few months, which is just another reason to think that the next bailout drama (keep an eye on Slovenia) may be even uglier than the last: Bank depositors in the euro zone’s other struggling regions will, doubtless, be watching carefully — and anxiously.

But while politicians in the euro zone’s north have to contend, for the most part, only with the threat of voter revolt, those in the periphery have to contemplate dealing with far tougher opposition. If parliamentary approval for the final memorandum of understanding that seals the deal is required, there may be some sweaty interludes in Cyprus (the parliament’s speaker has already signaled his opposition), but the best guess must be that Cypriots are likely to be too traumatized to do anything but go along with the terms of their rescue for now. But the spectacle of their pauperization will not play well with their kin in Greece, already radicalized by years of slump and increasingly hostile to the idea of sticking with the painful austerity that many of them regard (not always completely incorrectly) as self-defeating. That austerity is the price of continued support from the north, not least because, without it, voters in Finland and elsewhere would likely finally say that they had had enough. Rock, meet hard place. For now the somewhat unwieldy Greek coalition government is sticking to the troika’s script, but its leaders can read the opinion polls — and their message of growing anger — as well as anyone else. Meanwhile, in Italy the success of Beppe Grillo’s insurgent (and anti-austerity) Five Star Movement (M5S) in the February elections has led to political paralysis. At this writing, there is still no government in Rome, and the prospect of new elections cannot be ruled out. M5S continues to ride high in the polls. The humiliation of Cyprus will be unlikely to have hurt its case. Meanwhile, Silvio Berlusconi’s PDL, itself deeply skeptical of the troika’s agenda, is also polling well. In the aftermath of the Cypriot deal, Italian bond yields rose, and Italian bank shares fell.

To repeat myself, if you had a deposit in an Italian bank, what would you do?

Tick tock.

Time Was On His Side

Rupert Loewenstein: A Prince Among Stones - That Business With the Rolling Stones and Other Adventures

The Wall Street Journal, March 18, 2013

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If Jeeves had ever written a memoir of his time with Bertie Wooster, it would have been discreet, faintly disapproving, quietly affectionate and just a tiny bit dull. Step forward Prince Rupert zu Loewenstein-Wertheim-Freudenberg, a Jeeves of sorts to the Rolling Stones for close to four decades, their “bank manager” but also, as he notes in his new memoir, the band’s “nanny, frequently, psychiatrist, on occasion.” Sure enough, his account of his years with Their Satanic Majesties is discreet, gently disapproving, resolutely unshockable, undeniably affectionate and just a tiny bit dull.

Yet, as an archly written comedy of manners, “A Prince Among Stones” has its merits. The prince hails “from a certain sort of distinguished background,” and, by Gotha, he wants you to know it. Fair enough to mention a lineage stretching back to a Duke of Bavaria who died, poor fellow, “repelling the Huns in 907,” but to conclude the book with page after page of Loewenstein genealogy may be a bit much for readers just hoping for insight into who did what to whom in Studio 54. On that, the prince is, for the most part, loyally, infuriatingly silent, preferring to pepper his paragraphs with names boldface only in the most self-referential of worlds, that of a European high society in which the participants are primarily defined by family and connections. When Mr. Loewenstein introduces us to one of his acquaintances, we quickly learn that his father “was married to . . . a niece of Aspasia Manos, the commoner who married King Alexander I of the Hellenes.”

The prince himself was born on Mallorca months after the launch of the Third Reich. His parents were somewhat bohemian Bavarian aristocrats, who were both also of part-Jewish descent, a fact that is only briefly alluded to in the book but which adds a dark resonance to Mr. Loewenstein’s carefully understated story of a privileged yet vagabond upbringing. He spent much of his early childhood in Paris until, at the age of 6, he fled France and the Wehrmacht for England. He eventually became a British subject but never truly left the Continent behind. By his 20s he was enjoying “a very jolly international time.” He shares anecdotes of a strangely antique midcentury, including grand hotels, Rothschilds, an Agnelli, two guano heirs and a Venetian countess—a roll call enlivened by traces of his endearingly bone-dry humor.

Read one way, the social whirl that Mr. Loewenstein records could easily be viewed as the last hurrah of a deracinated aristocracy, cut adrift from history by the fall of the empires their families had ruled and served. But this is no snooty tale of genteel decline. Dynasties that flourish for a thousand years do so for good reason. Mr. Loewenstein relates how, as a successful and well-connected stockbroker, he headed up a consortium to buy a London merchant bank in 1963. Deal done, “the dolce vita days were over,” he laments, but the bank fared well.

And then, in late 1968, “the art dealer Christopher Gibbs” (a description too bland to do justice to a character even  Keith Richards  remembers as “adventurous”), who Mr. Loewenstein had “met, in that wonderful French phrase, dans le monde,” asks if he “would consider taking care of the finances” of the Rolling Stones. Mr. Loewenstein’s wife, in the know thanks to her “reading of the popular newspapers,” helps him sort out who these ruffians are. Until then “the name of the group meant virtually nothing to me.” He had (of course!) already “tripped over”  Mick Jagger at one of “the new style of informal parties,” an encounter that he, the grander grandee, had managed to forget.

This revelation sets the tone of slightly superior distance that the prince maintains from his unruly protégés throughout the book. There’s talk of “tomfoolery,” of “criticisable” behavior, of “sniggering like schoolboys.” And there is what may be the most spectacular washing of hands since Pilate: “The Stones had their own dressing rooms or caravans where, in the privacy of their own space, Keith, Mick and the other artists could do whatever they wanted,” he writes. “What went on behind those closed doors was entirely their business. I understood that it was part of their own particular way of preparing for a show.”

But perhaps detachment both from the rock ‘n’ roll circus and, to a degree, from the England in which he had settled helped Mr. Loewenstein see the potential in Jagger’s errant crew. In matters of business, “calm dispassion is essential.” A mildly artsy upbringing had left him open to dealing with musicians too scruffy and too chaotic for most City financiers of that era. He understood that in swinging London the old hierarchies had swung apart. Besides, he was “rather bored.”

What he discovered was that the Rolling Stones’ finances were a shambles. What he appreciated was that they need not be so. For all their countercultural baggage, the band was a business, one that needed running properly. Mr. Loewenstein spirited them out from under the grasp of the British taxman and, so far as he could, replaced one-sided commercial arrangements on which they were on the wrong side with ones in which they were not.

As much as Mr. Loewenstein did not like their music (“I never played a Stones track by choice”), he recognized their strength as performers, a talent that, he saw, could be profitably exploited—but by the band and not just by promoters and other scavengers. So here, too, Mr. Loewenstein took charge, not only sorting out the contracts, and the merchandising, and the sponsors, but doing his best to bring a little more Ordnung, financial or otherwise, to the touring process. A leading figure in an “ancient” (naturally!) Catholic order, Mr. Loewenstein even modeled the band’s meet-and-greets on papal audiences. The author’s famous ancestor had died in an attempt to repel barbarians. A millennium later, his descendant embraced them, enriched them and, on the way, did pretty well for himself.

Just Say No

National Review Online, February 14, 2013

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Have we just witnessed a cynical attempt to induce an old ally to sacrifice itself for the benefit of the United States? Possibly: Foreign policy is not for the morally squeamish.

Look no further than Philip Gordon, the U.S.’s assistant secretary of state for European and Eurasian affairs. In January, Mr. Gordon hurled himself into Britain’s contentious debate over the EU with the observation that America viewed the U.K.’s continued participation in that wretched union as “essential and critical to the United States.” This did not play well with Blighty’s euroskeptic hordes, a crowd all too willing to suspect that Uncle Sam takes John Bull for granted. An indignant Nigel Farage, leader of the insurgent euroskeptic United Kingdom Independence party (UKIP), snarked that, as the U.K. had rejected the Americans’ suggestion that it might lend a hand in Vietnam, the U.K. would also “say no to them over the EU.”

Undeterred, Barack Obama waded into the controversy a week or so later, releasing some comments shortly before David Cameron was due to deliver a much-anticipated speech on Britain’s role in the EU. The timing was intended to stiffen the back of a prime minister under immense domestic political pressure from his euroskeptic critics. The president began softly enough, politely underscoring “America’s close alliance with the United Kingdom,” but then came to the point: The United States values “a strong U.K. in a strong European Union.” Following Cameron’s speech, that message was echoed by Joe Biden, never a man afraid to repeat the words of others, during the course of a visit to Europe earlier this month: “We believe the United Kingdom is stronger as a result of its membership [in the EU]. And we believe the EU is stronger with the U.K.’s involvement.”

On one level, that was not so far from what Cameron had ended up saying. In his speech, he called for a reformed, “leaner, less bureaucratic union . . . with the single market at its heart,” a union open for business with the rest of the world, a decentralized union that would return powers to its member states but that would have room within it for a smaller group of countries on a pathway to “much closer economic and political integration,” but no sin bin for those who did not. If that is a vision in any way connected with reality, the State Department ought to be able to relax.

Of course, it is not. Fears among the EU’s leadership (alluded to by Cameron in his speech) that a restructuring on the lines he proposed could lead to the union’s unraveling will mean that it will never take place. If Britain is to loosen its ties to Brussels, it will have to do so on its own. That would involve persuading all the other 26 EU countries to go along (since changes to the EU treaty require unanimity). That’s not going to happen either.

No matter, Cameron has guaranteed British voters a referendum once his implausible negotiations for an impossible deal have been concluded. It will, he explained, be “a very simple in or out choice. To stay in the EU on these new terms; or come out altogether.” So would that be something for the White House to worry about? Not really. The Conservative manifesto for the general election, due in 2015, will include a promise to hold a referendum. But here’s the catch. The Conservatives will almost surely not win that election, for any number of reasons that we don’t need to go into now.

Even in the astounding event of a Tory victory, what then? Doubtless there would be an elaborate pantomime of negotiation — there is still a large constituency within the EU (including, most importantly, Germany) that would like the Brits to stay in — and doubtless a few crumbs of concession would be tossed Cameron’s way. Indeed there were sections in his speech where the prime minister already seemed to be signaling his willingness to find a way to accept them. For older Britons, this brings back memories of the 1975 referendum that rubber-stamped a cosmetically “renegotiated” deal with the precursor to the EU. And a rerun of that would probably be what they would get.

Disregard the polls currently showing that a majority in the U.K. would opt for Brexit (yes, that’s the term). That’s just venting. Given their druthers, because of anxiety about what lies outside, reinforced by skillful scaremongering (and there’s been quite a bit of that lately), most Brits would prefer to remain within the EU, albeit one that is less intrusive. The nature of the EU — an “ever closer union” — means that that is not on offer. But presented with a prettily packaged excuse to avoid confronting that unpleasant reality, and battered by warnings from the great and the good of the supposedly hideous implications of quitting, the British electorate would almost certainly stick with the devil it knows.

So Cameron’s gambit is highly unlikely to get anywhere, let alone lead to Britain’s escape from the EU, and yet the Obama administration still seems oddly concerned. In part this may be a feint, aimed not at London but at Brussels, Berlin, and Paris, crafted to demonstrate to a bloc of some consequence that the Brits might be euroskeptic but their cousins across the pond most definitely are not.

And in part it may be caution. Cameron is right: “Democratic consent for the EU [within the U.K.] is now wafer thin.” If the Labour party were to shift in a more euroskeptic direction, the political equation would change dramatically. Despite electoral logic and some tentative maneuvering, that’s not likely for now. The party’s leader is firmly in the Brussels camp. But its supporters are rather less so. All things considered, the White House may have thought that spreading a little of what euroskeptic blogger Richard North has dubbed FUD (fear, uncertainty, and doubt) over the consequences of a Brexit might be a sensible preemptive step.

More than that, the EU is in a tense, febrile state. The underlying structural failings of its monetary union, combined with a nutty determination to dig that hole still deeper, may well force the countries of the euro zone (and perhaps others) into a degree of integration that will, however much they might try to avoid it, necessitate amendments to the EU treaty. Those will be amendments to which the Brits will have to give their assent (unanimity, remember). At that moment, whatever the fate of Cameron and his referendum, the U.K.’s relationship with the EU will be up for discussion. As matters now stand, it is, to put it mildly, unlikely that the country will opt to join any inner core, but, by spreading a little FUD in advance (with more, unquestionably, to come), the U.S. is obviously trying to contribute to the creation of a climate of opinion within Britain that will prevent the U.K. from wandering too far from the heart of Brussels’s realm.

And as to why the administration should try to do this, well, that (if it is thinking straight) is where the cynical sacrifice of an old ally would come in. The EU is fundamentally anti-American. Designed as a counterweight to American power, it is a project that, lacking any genuine positive identity of its own, defines itself by what it is not. What it is not, its grandees like to emphasize, is America. Economically, the ideas of its founders were rooted in central planning at home, and, in dealings with the outside world, mercantilism. But British membership (and the example set by the success of Thatcherite reforms within the U.K.) has helped nudge the EU on a somewhat different (but not irreversible) course, more open to free markets and free trade and thus more to Washington’s liking (for instance, talks on a U.S.-EU free-trade deal are set to start in June). Similarly, Britain has acted as a brake on the construction of a common — and overarching — EU foreign policy that would, almost by definition, make the union an increasingly awkward partner for the U.S.

The problem is that the EU’s original suspicion of free enterprise has never disappeared, and hard times have given it fresh life. There are clear signs that Britain can only block so much for so long (the evolution of EU financial regulation is just one harbinger among many of trouble to come). The trudge toward a common foreign policy continues. Nevertheless, so long as the Brits stay relatively close to the center of the EU’s decision-making, there remains a decent chance that Brussels’s more damaging initiatives can be diluted, delayed, or derailed. Seen from an American viewpoint, there is thus a brutal logic to convincing the U.K. to hang in there, even if, from a British angle, it makes no sense at all.

But what if the White House is not looking at this question in the coldly Machiavellian way that Americans have a right to expect? One alternative interpretation of Obama’s effort to insert himself as a counselor into Britain’s unhappy European marriage is that his administration is still in thrall to the Cold War calculation that regarded (Western) European unity as a strategic good in its own right, an obsolete notion kept alive today by intellectual laziness in Washington and, somewhat more legitimately, by an appreciation of the genuinely useful role played by the EU in the transformation of the post-Communist part of the continent. It’s a mindset that has led successive White Houses — Republican and Democratic — to view the EU’s progress toward that ever closer union with insouciance, or even, sometimes, enthusiasm. A more tightly unified EU, gushed Condoleezza Rice back in 2005, would be a “positive force.” Maybe the Obama administration has simply succumbed to this delusion, and cannot grasp why Britain would not wish to sign up for the ride.

Then again, there could be a yet more troubling explanation. Does Obama look across the Atlantic to Brussels and rather like what he sees, an entity developing in a supranational, “progressive,” environmentally correct, corporatist, and technocratic direction that is not so far removed from his own agenda for this country? If he does — and it’s not so far-fetched an idea — he won’t have much sympathy for a bunch of what he doubtless sees as “bitter” Brits clinging to what’s left of their independence.

But whatever the reasons Messrs. Obama, Biden, and Gordon had for saying what they did, from the British perspective it is clear what David Cameron’s response should be. He should pay absolutely no attention.

Cameron and the Euroskeptics

The Weekly Standard, February 11, 2013

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David Cameron leaves things late. Leadership by essay crisis, it has been called, a nod to procrastination by generations of students. But his belated response to the mounting political turmoil over Britain’s membership in the EU​—​a speech proposing an in/out referendum​—​won’t save him from disaster in the 2015 general election.

Some early responses were encouraging​—​outrage from EU parliamentarians, a disapproving Obama administration, cries of good riddance in France, and, according to one grandee, “shock” in Davos​—​but British voters were not so easily taken in. Polls showed the Conservatives trailing Labour by a little less, mainly on the back of a few percentage points grabbed from the euroskeptic United Kingdom Independence Party, but Cameron’s speech was no game-changer. UKIP still stood at around 10 percent. UKIP, which largely draws its support from the right, took just 3 percent of the vote in 2010, but that was enough to cost the Tories some 20 seats​—​and an overall majority.

That’s the math forcing Cameron to call for a referendum he had always opposed. With his own (largely euroskeptic) Conservatives mutinous, UKIP polling in the teens, the economy faltering, and 2015 drawing closer, something had to be done. Cameron’s calculation was straightforward. With no other establishment party (for now) backing a referendum, and with UKIP (thanks to Britain’s first-past-the-post system) having little prospect of winning a parliamentary seat, let alone forming a government, the Tories are tempting euroskeptics with the only chance of the in-or-out showdown for which they have been pining. By contrast, voting UKIP in 2015 would divide the euroskeptic vote, help (europhile) Labour and the (euromaniacal) Liberal Democrats, and risk throwing that opportunity away.

The referendum timetable has been organized to underline that point. Nothing much will happen for now. Instead, Cameron will go to the polls in 2015 with a request for a mandate “to negotiate a new settlement with our European partners.” Once those negotiations have been concluded there will be a “referendum [in 2017, most likely] with a very simple in or out choice.” The referendum is thus dependent on Cameron’s reelection: Vote for him, or the nation-state gets it.

That so many UKIP supporters have yet to be won over is, to a degree, a reflection of the way the party has become an expression of broader popular discontent with the liberal status quo. UKIP is “about” more than the EU. But there’s something else: On closer inspection Cameron’s proposal looks less than convincing, and that’s even if we ignore the fact that his chances of victory in 2015 are on the order of a snowball in hell, or Romney in California.

There is a credible way for the U.K. to exit the EU (it involves Article 50 of the EU’s Lisbon Treaty; I’ll spare you the technicalities), but Cameron’s “negotiations” are not it. Anything involving the repatriation of enough powers to impress enough euroskeptics would need a new treaty to be agreed on by each EU country, a tall order for reasons that are both practical (there are currently 27 member states) and philosophical. The EU is driven by the idea of “ever closer union,” a process that only moves in one direction. Once a competence has been transferred from the national level to the EU it cannot​—​must not​—​be handed back. Were Britain to win an exception to this principle, it would make a shambles of what the EU is meant to be. “Europe,” warned the EU’s prominenti, is not “à la carte.” Britain was either in or, well, the rest was left unsaid by just about everyone other than the French.

Cameron understands this. He has framed his proposed negotiations​—​they should be part of a wider effort to create “a leaner, less bureaucratic union”​—​in a way designed to address this concern. If the broader Brussels menu could be made more attractive, Britain would need fewer special orders. Given the rhetoric in Berlin (sometimes), Stockholm, Prague, and elsewhere in the EU’s north and east in favor of Britain’s more free market tack, this is an approach that ought to make sense.

But talk is cheap. When it comes to actually doing something to reduce the Brussels deadweight, the EU’s more economically liberal governments typically fall silent, still in thrall to the European dream to which most Britons​—​who were told they were joining a “common market”​—​have never subscribed. And when Cameron asks for support for a less dirigiste treaty, that dream (or nightmare) will stand in his way. For once negotiations start, where will they end? After all, the EU’s electorates are restless, and profoundly divided about what they want from “Europe.”

Within hours of Cameron’s speech, a leading member of Angela Merkel’s party was talking darkly about the dangers of opening “Pandora’s box,” a comment then echoed across the continent by a cast of characters that included the finance minister of the crumbling Hellenic Republic, Pandora’s repeatedly bailed-out basket case, sternly warning of the dangers of renegotiations, a performance that would suggest that chutzpah as well as cynic is a word with roots in ancient Greek.

Cameron may be gambling that the euro’s problems will force that box open regardless. National politicians sucked into the eurozone’s drama will keep trying to bypass the need for treaty revision and its awkward requirement of unanimity (as they did with the 2012 Fiscal Compact, which is formally a side-agreement) in their efforts to fix the currency union. But the far deeper integration that this repair work must eventually entail (and for which the Brussels bureaucracy is pushing) cannot be achieved without it. Amending the treaty would require British consent, and that could be Cameron’s moment. The U.K. would never be expected to opt into any EU “core,” but the price of doing nothing to impede its formation ought to be agreement to the sort of looser association that most Brits would anyway prefer over a clean divorce.

That’s how this story could work out, but it relies on improbable contingencies, stretched assumptions, and tightly crossed fingers. Many euroskeptics​—​even if they could be persuaded that Cameron has a shot at victory in 2015​—​would not regard that conclusion as a happy ending. What they want is a clean break. What they fear is that even the half-decent second-best solution​—​a looser association​—​will not be what it could be thanks to David Cameron. He may be frustrated by the EU, but he doesn’t have the imagination to risk anything approaching separation.

What, I suspect, they anticipate is that he won’t even get that chance, that the eurozone will struggle on as is, and that Cameron will be thrown a few scraps at the end of pantomime negotiations, which he will then declare to have been a triumph. This will set the stage for a referendum in which a misled, there-is-no-alternative British public will vote for the “yes” for which Cameron has already declared​—​an odd thing to do ahead of any negotiations​—that he will campaign “heart and soul.” That is not the language, and these are not the scenarios, designed to reassure euroskeptic hearts, minds, or even souls in time for 2015.

Red Dawn

Robert Service: Spies and Commissars - The Early Years of the Russian Revolution

The Weekly Standard, February 4, 2013

Russian Civil War Monument, Archangel, Russia, August 1996 © Andrew Stuttaford

Russian Civil War Monument, Archangel, Russia, August 1996 © Andrew Stuttaford

When everything changes, what should be done?

Over 30 years after Ayatollah Khomeini lit the Islamic fire, the West is still fumbling its way to a proper response. Imagine, then, the challenge posed by the Bolshevik Revolution in 1917. A key partner in the Allied war against Germany had just been hijacked by a fanatical cult intent on remaking the world, and the world had no clue what to do in reply.

That’s the background to this fine new work by Robert Service, a distinguished historian of Soviet communism perhaps best known for his biographies of Lenin and Trotsky, two monsters brought to unusually vivid life in these pages. Here’s Trotsky, flirting with Clare Sheridan (Winston Churchill’s embarrassing first cousin, as it happens) as she sculpts his bust in the Kremlin, and there’s Lenin, “shortish, pedantic and impatient. With his thumbs tucked into his waistcoat, he seemed at times like an angry Sunday preacher.”

This is a deftly drawn book, illuminated by the author’s eye for detail, ear for a good quote, and nose for a ripping yarn.

And what a yarn it is. The ancien régime is no more. We are given a quick look at the deposed and imprisoned Czar Nicholas, the most prominent, if far from the most important, of all the “former people” (to borrow the chilling Bolshevik phrase), reading “Turgenev .  .  . [and] anti-Semitic tracts.” Meanwhile, the armies of his kinsman, the Kaiser, are tearing chunks off what once was the Russian Empire, before dissolving into confusion after defeat on the Western Front.

All is flux. The territory controlled by the Bolsheviks shrinks and grows in a mirror image of the tides of a vast, bloody, and chaotic civil war, and the Kremlin’s efforts to export its revolution to Warsaw and beyond. National independence movements rise and fall. Estonia, Latvia, and Lithuania get clean away (for now), Ukraine and Georgia are not so lucky. Hovering uncertainly on the fringes are troops dispatched to Russia by its erstwhile allies in the hope that they might somehow reverse the worst of the revolution. They were never able to do so.

Service gives an excellent overview of this bewildering series of conflicts, and of the dawn of revolution as a whole, but this is just the frame for his picture of a country where nothing was as it had been and everything was up for grabs. Older, more genteel techniques of influencing events no longer worked. Traditional diplomacy was dead.

But both Russia and its revolution were too big to ignore. Although foreign governments may have dithered, some of their citizens did not. It is around their stories that Service shapes his narrative. The Bolsheviks might have thought that they were steering immense, impersonal, and unstoppable historical forces, but the new world that they created was so fluid and so fragile that the individual could, and did, make a difference.

There were the true believers—early fellow travelers not just along for the ride but eager to speed it on its way—such as the American journalists John Reed and Louise Bryant, and, more equivocally, the Briton Arthur Ransome. Reed, the author of Ten Days that Shook the World, ended up an honored corpse beneath the Kremlin walls; Bryant, his widow, was subsequently married (for a while) to the man later appointed the first American ambassador to the Soviet Union. Ransome became a much-loved children’s writer (Swallows and Amazons and similarly wholesome fare) and a less-loved husband of one of Trotsky’s former secretaries.

Not so idealistic, but in some ways no less credulous, were the prospectors among the rubble, the entrepreneurs and con men who saw the collapse of Russian capitalism as a business opportunity. And then there are the real heroes of this book, the remarkable band of (mainly) British or British-sponsored adventurers who did what they could to overturn Bolshevik rule.

While a small British expeditionary force gathered in the far north, His Majesty’s irregulars set to work in Moscow. At least three of them—Sidney Reilly, Paul Dukes, and George Hill—could, notes Service, “have supplied inspiration for James Bond.” No martinis, but in just one paragraph we read about Reilly’s involvement with Yelizaveta. And Dagmara. And Olga. We also read about that clever and unconventional thrill-seeker, Robert Bruce Lockhart, designated “Head of the British Mission” and the ideal agent-diplomat for a place where the rules of diplomacy had broken down. Between romances, Bruce Lockhart plotted coups. And the Britons were not alone: Uncle Sam was represented by the more staid, but not ineffective, “Information” Service, run by the marvelously named Xenophon Dmitrievich de Blumenthal Kalamatiano, a one-man tribute both to American’s melting pot and its enterprise.

If all this sounds like the stuff of John Buchan, only more so, that’s because it is. This is a story with room for Latvian riflemen, Czech Legionnaires, and a Polish Women’s Death Battalion; for failed revolutions across Europe, for conspiracies and spies, and for the daredevil aviator Merian Cooper, one of the American volunteers in an air squadron that helped Poland beat off Bolshevik invasion. (“Coop” was shot down but escaped after 10 months of Soviet captivity. A decade-and-a-half later, he coproduced, cowrote, and codirected King Kong.)

For all the tales of derring-do, however, it’s impossible to read this book without sadness and frustration. This was a tragedy that could have been cut short. Winston Churchill, a minister in the British government during this period, argued for more to be done against the Reds. He understood what his cousin Clare Sheridan did not: that this terrible infant revolution needed to be “strangled in its cradle.” Not for the last time in his career, too few listened until it was too late.

To some Western leaders, Bolshevism was a spasm that would pass. Russia’s counterrevolutionary armies—the Whites—would prevail with just a little support from the West; or maybe Bolshevism, an onslaught on human nature itself, would simply collapse, or be overthrown in its own heartlands. Others, not unreasonably, feared that their own, already war-weary peoples would be driven to revolt by the prospect of participating in what many were bound to see as a bosses’ crusade against a bright, brave experiment. So, denied the outside assistance that might have made a difference, the Whites were overwhelmed, beaten by an enemy that, in the end, proved more cohesive and determined than they were. The undersized and ultimately irrelevant Allied detachments—primarily French, Japanese, American, and British—slunk home from their beachheads, but the Western statesmen told themselves not to worry: Trade would blunt Leninist rigor, and a cordon sanitaire of new East-Central European states would keep Bolshevism confined to its birthplace.

Less than a quarter of a century later, the Red Army was in Berlin. As for His Majesty’s irregulars, most resumed lives of quieter distinction, but the (probably) Ukrainian-born Sidney Reilly (né Rosenblum) continued to fight. Lured back to the Soviet Union in an elaborate sting operation, he fell into the hands of the secret police, and, like millions to come, was killed.

Czy Warto Wrócić Do Dyskusji O Wprowadzeniu W Polsce Euro?

Forbes Polska, February 1, 2013

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Polska powinna trzymać się z dala od strefy euro. Europejski Bank Centralny nie znalazł bowiem recepty na politykę monetarną, która respektowałaby interesy wszystkich jej członków. Polska, pozostając poza unią walutową, pozwala swojemu bankowi centralnemu prowadzić politykę monetarną i kursową, która odpowiada na jej specyficzne potrzeby. Nawet jeśli nie zawsze okazuje się skuteczna, to przynajmniej w ogóle istnieje.

Euro było i jest polityczną próbą zignorowania ekonomicznej, kulturowej i demokratycznej rzeczywistości, aktem pychy, który może wydawać się znajomy tym, którzy żyli w komunistycznym ustroju. Jeśli unia monetarna siedemnastu (lub więcej) państw ma mieć jakiekolwiek szanse na prawdziwy sukces, to musi się wiązać z zacieśnianiem budżetowym o wiele głębszym, niż członkowie Eurolandu byliby obecnie gotowi poprzeć. Przy bezlitosnej logice wspólnej waluty nie pozostaje im obecnie nic innego, jak trwać w niej w jej obecnym kształcie. Zresztą prawdopodobnie zanim Polska spełni warunki przystąpienia do strefy euro, będzie ona już istnieć w nowym kształcie. Wierzyć, że ieodpowiadające przed nikim elity technokratyczne, lojalne tylko wobec siebie i swoich własnych wizji, zapewnią Polsce dobrobyt, byłoby szaleństwem.

 

This piece was written as part of a debate on whether Poland should join the euro. And no, I don’t speak (let alone write) Polish.  Please see below the original English text that I submitted to Forbes Polska. I am told that the two versions are very much alike….

 

One size does not fit all. In a currency union encompassing very different economies, the ECB has long found it impossible to manage a monetary policy that is “right” for everyone. It could never accommodate Poland, developing at a pace that reflects both the rhythms of the European economy and profound structural change. With Poland outside the currency union, the Polish Central Bank can run a monetary and exchange rate policy designed for Poland’s distinctive needs. It may not always succeed, but the ECB would not even try.

If signing up for the single currency would be bad for Poland’s economy, it would be worse for its democracy.  The euro was—and is—a political attempt to override economic, cultural and democratic reality, an act of hubris that may sound a little familiar to those who once lived under communism. If a monetary union of 17 members (or more) is to have any prospect of genuine success it will have to involve far closer budgetary integration than the Eurozone’s voters are now willing to endorse, but the relentless logic of a shared currency may leave them (as they see it) no choice other than to go along. ‘Forced’ unions are generally unhappy, unstable and unproductive, but the chances are that, by the time that Poland is eligible to join, this tighter Eurozone will be in place.

It would preserve the rituals of democracy, but they would be without meaning. As Václav Klaus has observed, there can be no European democracy without a European demos. Instead the old nation-states will become provinces in a realm managed by an unaccountable technocratic elite that owes loyalty only to itself and its dreams. To believe that this would ensure the continent’s (or Poland’s) prosperity or, for that matter, security is madness.

Poland should stay out.

Medium, Not Rare

Mark Edward: Psychic Blues - Confessions of a Conflicted Medium

National Review, January 23, 2013 (February 11, 2013 issue)

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The tale of the whistleblower generally follows a predictable arc. There is the dreadful misbehavior, and the whistleblower’s shamefaced confession of his part in it. The whistle blows. The wrongdoing ends. The penitent whistleblower moves on to a better life, book contract in hand. That’s not quite how it seems to have worked out in the case of Mark Edward. But there has been a book contract, and the result is Psychic Blues.

Its author, Mr. Edward, is a mentalist (yes, that’s the word) who has set the traps of junkyard superstition for decades, and the gullible, the lonely, the hopeful, and the dim have fallen right in. Amongst other roles, he’s been a dial-a-psychic (with the old Psychic Friends Network, an entity that does not emerge well from this book), a rent-a-psychic, a TV psychic, a party psychic (“somewhere between the popcorn vendor and the mimes”), a Psychic Revivalist (don’t ask), a palmist, an ESP-tester, a runestone cowboy, a banana-reader (oh yes), a nightclub act, a fortuneteller, a graphologist, and the organizer of a hoax involving the possibility of a three-way interspecies dialogue to be arranged by whales between them, us, and the extraterrestrials that are, as you know, now living in our ocean depths. He has held “quick but dramatic psychic readings for attractive single women” and he has read the paw-print of a dog (“Whitney has a lonely side to her personality”). But there’s a problem. As the subtitle of Psychic Blues signals, Edward is a “conflicted medium.” Those paranormal abilities he’s been touting? He believes that he hasn’t any, and nor, for that matter, has anyone else. As for the supernatural, well, “there’s nothing there in the dark.”

Indeed. But these apparently long-held beliefs did nothing to stop Mr. Edward from pursuing a charlatan career, something that is a touch difficult to square with the way he likes “to look in a mirror and see integrity staring back.” Clearly he is not only in the business of deceiving other people.

But he’s a trickster, not a monster. Many of his clients will have treated his readings as a game. Even those who didn’t won’t have got into much trouble with pronouncements that, as Edward describes them, relied on common sense and his own sharp intuitive gifts, or were of a generality so wide, bland, or broadly benign as to be helpful at best and safely opaque at worst. And sometimes people just like to talk. “A sideshow tent,” writes Edward, “is never far from a psychiatrist’s couch; there’s just more sawdust on the floor”; an exaggeration, to be sure, but not by too much.

Edward goes on to claim that he has “consistently opted to tell people what I feel in my gut is what they need to hear.” This is not the most clinically rigorous of approaches, and Edward’s early background (according to the Wikipedian oracle, it included stints in various absurdly named bands and time as a fire-eater) involves nothing in the way of scientific training. Then again, would the study of old Freud’s woo-woo have added much more? Cleverness and empathy can frequently be enough.

Thus he notes that, “as P. T. Barnum once said, there’s a sucker born every minute. And in the 900 business, every minute counts.” But he then throws in tales of occasions where he was a genuine friend, if not a genuine psychic. As Edward fielded call after call from the “lost souls” out there, he had, he maintains, a “long list of 800 help-line referral numbers” covering everything from alcoholism to alien abductions. He tries to direct the savagely abused Trish to a women’s shelter. His session on the line with Ginger Triggs (“another drunk badly slurring her speech”) turns out to be a life-saver. He discovers later that their conversation has been enough to persuade her to put down the loaded gun that (as, naturally, he had failed to divine at the time) she was aiming at her head while they talked. Ginger leaves her abusive husband, tackles her alcoholism, and starts training to be a nurse: “I had saved someone’s life.” Who could have foreseen that?

Enlightenment sorts, as well as the more conventionally devout, will be dismayed by Edward’s neatly drawn description of the mumbo-jumbo America in which he works, a credulous place where a psychomanteum (look it up if you care; trust me, it’s ludicrous) is technology, tarot is wisdom, and a pendulum is a lie-detector. But Homo sapiens is who he is. Edward wonders whether the New Age abracadabra represents a “terminus of rationality” or a return to our roots, a distinction that implies, rather optimistically, that we have left them. However bizarre, beliefs like those he was pushing — and their antecedents and, inevitably, successors — offer the meaning that many folk feel that they need, but cannot find elsewhere. Such beliefs will forever be with us. What matters is whether they are put to good(ish) use or bad.

The odds of the latter markedly increase when there’s a buck involved. In Edward’s trade there is plenty of room for “callous exploitation” of vulnerable prey. He quotes Ambrose Bierce: “Magic is a way of ‘converting superstition into coin.’” And this coin can travel in unexpected directions. Edward argues that it’s the phone company, not the psychic, that does best out of all those late-night sessions on the 900 line, followed by the network’s owner, not the psychic. Edward depicts a tough world in which most of his cohort, a carny crowd really — all “greasepaint and bulls**t” — eke their way through. In a reflection of the hardscrabble existences of those on whom they so often feed, they too can struggle to survive. He describes the skills, tricks, flimflam, and cheating that they deploy to make a living, something made easier by humanity’s willingness to believe just about anything, or, for that matter, to pay for a spooky thrill: “Sweat it out, miss a few details, and the audience is left with no other explanation than that you are the real deal.”

At times, this makes for a fascinating read — and Psychic Blues would make a useful gift for a friend susceptible to circling light-workers — even if it falls far short of the bleak, brilliant brutality of Nightmare Alley, the Truman-era novel (and movie) with which Edward would dearly like his book to be compared. Perhaps it takes fiction to do true justice to fables of the psychic con. And some literary talent: Despite some good lines and better insights, Edward is not much more of a writer than he is a clairvoyant.

He’s also pretty cagey. Like so many of his peers, he has peddled what he knows to be nonsense. Nevertheless he claims that he would never “outright lie” (note that careful “outright”). He never, he declares, claimed “to see spirits,” which makes one think that the séances he has organized (briefly referred to elsewhere in the book) must have been a little dull. Nor has he, he says, tried to cheat his clients by telling them only what he “sensed they wanted to hear.” Given the shenanigans to which he does admit, not least his confession that “hope” is what he sells, more cynical readers may not be entirely convinced.

They may also puzzle over the question of why he really reached for that whistle. The way Edward puts it, he was tired of his double life as both skeptic and seer, and became “committed to letting the psychic cat out of the bag.” This book, complete with a foreword by the Great Debunker, James “The Amazing” Randi himself, is part of that process, but some of those pesky cynics may still be suspicious. Could this conversion be just another routine for a conjurer still — notwithstanding an appearance at Buddy Hackett’s 70th-birthday party — looking to hit the big time?

That said, Edward has paid his skeptic dues. He has been on TV with Penn and Teller, he’s shown up at Skepticamps, he posts at Skepticblog, and he practices guerrilla skepticism, swilling what ought to be lethal quantities of homeopathic remedies and punking the infamous Sylvia Browne, “world-renowned” spiritual teacher, psychic, and author.

But Edward’s road to Damascus may have space for some U-turns. In a recent interview with the New York Times, he confirmed that he was “still involved” in some of his old psychic games. It’s impossible not to think that this particular whistleblower may be playing a decidedly ambiguous tune.

Meanwhile, just last year the septuagenarian Browne published her new book, Afterlives of the Rich and Famous, an update on how things are going for the glitterati on the Other Side — Princess Diana, Elvis, and Heath Ledger the newbie, to name but a few.

The gypsy caravan trundles on. Always has. Always will.

A Soviet Brigadoon

National Review Online, January 8, 2013

Sillamäe Town Hall, Estonia, August 2012 © Andrew Stuttaford

Sillamäe Town Hall, Estonia, August 2012 © Andrew Stuttaford

It’s not easy to surprise Toomas Hendrik Ilves, Estonia’s sharp and savvy president, but I reckon I succeeded. In September, I was in Tallinn, the Estonian capital, to interview him for National Review. In the small talk before we turned to the euro, economic recovery, Russia, the usual, he asked me where else I had been on this visit to his country. “Sillamäe,” I replied. The presidential eyebrows rose, just a bit. Maybe there was a word thrown in too, an “interesting,” something like that.

The author of the Lonely Planet’s 1994 guide to the Baltic States and Kaliningrad would have been blunter. After explaining that Sillamäe had been “built after WW II to support a military nuclear-chemicals plant,” an over-simplification that will do for now, he went on to tempt the tougher end of the tourist trade with this: “according to press reports, the plant’s waste dump contains several tons of radioactive and highly toxic wastes, surrounded only by an earth wall 10 meters wide and is already contaminating ground water and the Baltic Sea.”

It was worse than that. The waste dump, euphemistically a waste depository, was a large lagoon, a Leninist lake, toxic and vile, described by the man responsible for cleaning it up as a “uranium pond” hosting some twelve million tons of a sludge containing “uranium, heavy metals, acids and other chemicals.” A testament to Soviet environmental sensitivity, it was open to the air, set on far-from-ideal clay, encircled by a poorly constructed wall, and located just a few yards from the sea. It leaked, and the overspill after heavy rainfall added to the mess. In 1993 the International Atomic Energy Agency labeled the site a serious radioactive risk. Four years earlier the New Scientist had reported that many of Sillamäe’s children were losing their hair. The clean-up was finally completed in 2008. I was told that what’s left of the waste is buried (with other safeguards) under a man-made hill that juts out onto the Baltic shore.

“Will that do the trick?”

“Hope so.”

Where the waste is (somewhere), Sillamäe, August 2012, © Andrew Stuttaford

Where the waste is (somewhere), Sillamäe, August 2012, © Andrew Stuttaford

Other traces of Sillamäe’s strange history remain well above ground.

A three-hour trip to Tallinn’s east on a bus that will end up in St. Petersburg, this sleepy, gently-shrinking, largely Russian-speaking town of some 14,000 people is located at a point just a few miles from the Russian border — and at a moment poised somewhere between Estonia’s painful history and its infinitely more promising present. Before the war, there had been just a few houses here, and a Swedish-owned shale oil processing plant. When Estonia’s Soviet “liberators” returned in 1944, the local variety of oil shale (dictyonema argillite, in case you were wondering) interested them very much indeed. Among the minerals that lurked within it was uranium, something which Stalin had — up to then — found rather hard to obtain, but wanted very badly.

The old Swedish works had been destroyed during the war, but a new production unit — Kombinat no. 7, and a new town that was intended to support it — was built, much of it by the forced labor of convicts and POWs. The latter included many Balts caught up in the conflict between their homelands’ Nazi and Soviet invaders. More than half a century later, the facility’s new Estonian owners stripped away sheetrock in its administration building to reveal well-crafted brickwork. A section has been kept exposed as a memorial of sorts to those that worked — and died — here, often in appalling conditions. Just outside is a small Soviet-era monument to the Great Patriotic War, a war that Estonia was doomed to lose regardless of which of its totalitarian occupiers might prevail. History is a via dolorosa in this part of the world.

After the prisoners came yet more wreckage of war, those still remembered in Sillamäe as “the orphans.” As the plant — the USSR’s first fully operational uranium-processing facility — was completed, teenaged survivors of the siege of Leningrad were shipped in to be trained as additions to its workforce. Production started up, beginning with local material, but then switched to higher-grade ore shipped from all over Moscow’s empire. Some 100,000 tons of uranium were produced between 1946 and 1990 for both civilian and military use, a total exceeded in only two other sites in the whole Soviet bloc.

The town grew, but behind a cordon of secrecy, denial, and security. It slipped off and on the map. Sometimes it had a name, sometimes a code. It was a closed town. Access was strictly restricted. It was years before Estonians were allowed to work there (and only a handful did thereafter). For a while, the town was administered, not as a part of Soviet Estonia, but as an exclave of Soviet Russia itself.

There was something else that set Sillamäe apart. Narva, a larger city nearby, and once a jewel of the Northern Baroque, was brutally and slovenly rebuilt after the war as a generic Soviet settlement with a population to match. To be sure, there’s some of that in Sillamäe, but this was a town with a very special purpose. Those who controlled it understood that it would work better if its inhabitants — who included some highly qualified technical staff — were treated better than the Soviet norm. Sillamäe’s center is, I’ll say it, nice, a beautifully preserved showpiece for a Stalinist architecture that is, for once, neither botched, nor slum, nor Mordor. But in feel and former function, if not in appearance, it is also faintly reminiscent of the unsettling picturesque of the Village that housed The Prisoner’s Number Six.

Sillamäe , Estonia, August 2012, © Andrew Stuttaford

Sillamäe , Estonia, August 2012, © Andrew Stuttaford

This creates a vague sense of unease only underlined by the extent to which the past still lingers on here. This must be one of the few places in Estonia where the symbols of the old regime, the hammers, the sickles, the stars, can still be seen in public, discreetly incorporated into the pale, pastel facades of the buildings of downtown. That they are still in place speaks volumes about the attitude of the locals, and, rather more reassuringly, about the self-confidence of the re-born Estonian Republic, and the relative sensitivity with which it handles the ethnic Russian minority (reduced now to perhaps 25 percent of the country’s population) that remains the most troubling relic of Moscow’s colonial rule.

2 Mere Puiestee, Sillamäe Estonia, August 2012, © Andrew Stuttaford

2 Mere Puiestee, Sillamäe Estonia, August 2012, © Andrew Stuttaford

 
The predominant architectural style at the town’s heart is what came to be known as “retrospectivist” (yes, really), backward-looking, fortified by the reassurance of a past that predated the storms of the 20th century. Many of the buildings play with neoclassical themes. Beyond that there are stately white staircases with a touch of old Odessa about them, a neatly laid-out park, a curious statue of a man lifting, I think, a symbolic atom, a lovely tree-lined avenue, a dignified cultural center, and a fine cinema by the name of Rodina. That’s Russian for “motherland,” but whether that referred to the shared Soviet home or Mother Russia herself was never quite clear. Neither interpretation was likely to appeal to Estonians, but Estonia is a tolerant sort of place and the cinema, along with the cultural center, has enjoyed protected status for over a decade. Across the street stands the town hall, inspired by the design of a traditional Estonian Lutheran church, something that the Soviets must have thought was innocuous enough to be the subject of pastiche. The same, presumably, could be said of the nods to traditional Estonian manor houses that can be seen elsewhere in town.

Mere Puiestee,Sillamäe, Estonia, August 2012, © Andrew Stuttaford

Mere Puiestee,Sillamäe, Estonia, August 2012, © Andrew Stuttaford

Uranium production in Sillamäe was abandoned in 1990. Soviet rule in Estonia collapsed the next year, and Sillamäe rejoined the world. The facility, renamed Silmet, was privatized, sold, resold, and sold again. Since 2011, by which time Silmet had become one of only two centers in Europe for the processing of rare earths (elements that are crucial for a wide range of electronics), it has been owned by the U.S. mining group, Molycorp.

Atom monument, Sillamäe, Estonia, August 2012, © Andrew Stuttaford

Atom monument, Sillamäe, Estonia, August 2012, © Andrew Stuttaford

But Sillamäe itself, adrift from time and place, a Soviet Brigadoon but forever in full view, endures. There’s a tucked-away town museum (judging by the friendly, but astonished, welcome I received from the three or four ladies who preside there, I was the first visitor for weeks). Apart from some atrocious local art and a collection of dolls that looks as if it has been curated by a serial killer, it boasts a couple of rooms that give a bric-a-brac impression of everyday life during Sillamäe’s Soviet past.

Town Museum, Sillamäe, Estonia, August 2012 © Andrew Stuttaford

Town Museum, Sillamäe, Estonia, August 2012 © Andrew Stuttaford

Then again, wandering around town will do pretty much the same thing (if you ignore the well-stocked shops). Ethnic Russians continue to make up the overwhelming majority of the town’s population. Dreaming, perhaps, of the lost certainties of Brezhnev’s day, babushkas still wander down Mere Avenue as it sweeps grandly down to the Baltic. Lenin Avenue has gone, but there are streets named after Russian literary figures and the first cosmonaut too. Up by the bus station, there’s an imposing Soviet war memorial with flowers at its base.

Soviet war memorial, Sillamäe, Estonia, August 2012, © Andrew Stuttaford

Soviet war memorial, Sillamäe, Estonia, August 2012, © Andrew Stuttaford

But, despite pot-stirring by the Kremlin, and the occasional eruption (most notoriously over the removal to a less prominent place of another Soviet memorial — this time in Tallinn), time, the passing of the older generation, Estonia’s remarkable economic performance, and access to the rest of the EU have all brought a measure of live-and-let-live to relations between the country’s two principal ethnic groups. Unlike in Latvia, where the demographics are even more delicately balanced, there is no specifically “Russian” party represented in the Estonian Parliament, and once-noisy calls for the autonomy of the still hardscrabble Russian-speaking Northeast have died down. Both in Sillamäe and in Tallinn I was assured that younger Russians are at last learning Estonian (even if, understandably enough, their Estonian peers are reluctant to learn Russian, the language of their country’s former oppressor), something that may even give them something of an employment edge in a country that is in practice, if not in law, bilingual.

When it comes to this topic, David O’Brock, the engaging Ohio native (and long-time resident of Estonia) who runs Molycorp Silmet, is cautiously upbeat about what lies ahead. Almost all the workers at his factory are ethnic Russians and many, even the middle-aged and older, are studying Estonian, or other languages that could be of use in a world that now extends far beyond Moscow’s reach.

A once-closed town is opening up. And in more ways than one.

The Iciest Apparatchik

John Bew: Castlereagh - A Life

The New Criterion, January 1, 2013

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There is a statue of Lord Castlereagh (1769–1822) in Westminster Abbey, but the inscription on his grave nearby has, with perfect melancholy symbolism, worn away. With the exception of the Irish, who forget nothing, Castlereagh is usually remembered, if at all, only for fighting a duel with a cabinet colleague and for committing suicide with a penknife, the sole British foreign secretary to have done so, by that or any other method.

Mainstream historians who prefer to run no risks might add that Castlereagh was a wicked reactionary, author of the policies that generated the insults that have kept his name alive in literature, if nowhere else. Byron labeled him an “intellectual eunuch”—a sneer made all the more cutting by his target’s childlessness—and rejoiced at his suicide: “Here lie the bones of Castlereagh/ Stop, traveler, and piss.”

Shelley, not to be out-Michael Moored, had this to say in the aftermath of the bloody suppression of calls for parliamentary reform:

I met Murder on the way – He had a mask like Castlereagh –
Very smooth he looked, yet grim;
Seven blood-hounds followed him:
All were fat; and well they might
Be in admirable plight,
For one by one, and two by two,
He tossed them human hearts to chew
Which from his wide cloak he drew.

Henry Kissinger, however, is something of a fan.

Castlereagh, with Metternich, was the subject of Kissinger’s first book, A World Restored: Metternich, Castlereagh, and the Problems of Peace 1812–1822. It is long out of print, but at least it gave him the billing he deserved. That’s unusual: Looking through the extensive bibliography at the end of John Bew’s fine new life of Castlereagh, it’s striking to see how few books published in the last century include his subject’s name in their titles. The title of one of those that do—C. J. Bartlett’s Lord Castlereagh: The Rediscovery of a Statesman (1969)is itself an indication of fame that has passed into shadow.

Castlereagh was one of the architects of Britain’s victory over Napoleon and, at the Congress of Vienna and thereafter, a creator of the system that helped shape that continent for a century—the Concert of Europe. He was simultaneously the Foreign Secretary and the Leader of the House of Commons for a decade. Dublin-born, he played a prominent role in the suppression of the Irish rebellion of 1798. Two years after that, he was instrumental in forging a formal union between Great Britain and his homeland. Sic transit gloria and all that, but his current obscurity seems overdone. Shelley, the author of “Ozymandias,” might have approved, but Mr. Bew evidently does not.

His book is designed “to challenge [the] image of Castlereagh as an unthinking reactionary,” and also, I suspect, to restore this forgotten giant to the prominence that he deserves—for good or bad—in Britons’ understanding of their own past. Bew succeeds on the first count and, aided by his formidable storytelling skills, deserves to do no less on the second. Intricate descriptions of Castlereagh’s political and diplomatic maneuverings are inevitable, and they come with their longueurs. But these are more than offset by a sensitive, sympathetic and lively depiction of the man as well as the politician, and of a family that included the Bizarro Castlereagh: his half-brother, “Fighting Charlie,” a proto-Flashman in the George MacDonald Fraser style, whose louche exploits act as a jangling, ribald refrain to his older sibling’s infinitely more stately waltz.

Bew has an eye for the entertaining detail, and he depicts a time and a place impossibly remote and startlingly close. Popular resentment over “tales of ostentation and obscene wealth” that emerged from the seemingly endless series of international conclaves reminds us that the distance from Vienna and Aix-La-Chapelle to Turtle Bay, Davos, and Brussels is not so great after all.

And then there are this book’s more profound contemporary resonances. Europe is now again in disarray, a global revolutionary movement—this time Islamic (how the philosophes would have despaired)—is on the march. New powers are asserting themselves with little respect for the rules of the post-1945 game. Castlereagh would have recognized the picture, and, with his Hobbesian view of humanity, would not have been terribly surprised. As he would have understood, the United States, Britain’s successor as top dog in the pound, has to work out a response, a process that must first involve deciding what foreign policy is for.

About that, Castlereagh had few doubts by 1814. After the expense, danger, and disruption of the Napoleonic wars, the national interest defined (as it always should be—coldly, clinically, and with practical amorality) lay in the maintenance of a peaceful Europe that left Britain free from danger and its trade from disruption. Sharper than the treaty makers at Versailles a century later and too coolly rational to be interested in revenge, he blocked plans to impose a harsh, inherently destabilizing settlement on the defeated France. What he wanted—and what he got—was the creation of a continental balance in which no one power predominated. If that meant going along with a despot or two, so be it. Stability was its own reward. Extreme reaction was potentially as unsettling as “political experiment and popular delirium,” and no less to be discouraged. Attempts by Russia’s increasingly bizarre Czar to recruit Britain into a monarchical Holy Alliance intended to impose a cross-and-scepter anticipation of the Brezhnev doctrine on Europe was rejected. “Mysticism and nonsense” said Castlereagh, as, indeed, it was.

Those are not the words of an unreconstructed reactionary. On the contrary, Castlereagh was, Bew proves, a man of the Enlightenment, but without illusion. He had little time for the stupidities of the ancien régime, but he also witnessed revolutionary France (“that pile of ruins”) first hand. Chaos, he saw, was rarely a friend of liberty, progress, or prosperity. He would have cast a cold eye over the Arab Spring. Change, he accepted, could be for the good, but the best chance of it to work out that way would be for it to be incremental, gradual, and cautious—sometimes, as in the case of his careful support for the abolition of slavery, excruciatingly so. With Castlereagh, calculation and principle walked hand-in-hand.

Thus, the formal absorption of Ireland into a greater (comfortably Protestant) United Kingdom would, he thought, smooth the way to the Catholic emancipation that Castlereagh (to use American terminology, a Scotch-Irish Presbyterian) regarded both as a worthy objective and an essential element in the anchoring of John Bull’s other island. George III disagreed. Perhaps losing America was not enough. Catholic emancipation was delayed for another three decades, further poisoning a well that Castlereagh had already done his bit to pollute.

For when Ireland rose in rebellion in early 1798, Castlereagh went along with, and then presided over, a ferocious response which was shocking even then, and for which he bears more responsibility than Bew appears willing to admit. Cornwallis (yes, that Cornwallis) arrived in June that year to take charge, and quickly grasped that the extreme brutality was self-defeating and adopted a more moderate course. Castlereagh again went along, impressing Cornwallis with his loyalty to the new line. As Bew demonstrates, Castlereagh could be the chilliest of apparatchiks, but he was no sadist. The excesses had been distasteful. Worse, they were counterproductive, an unforgivable flaw to this supremely pragmatic man.

He himself was never to be forgiven for them, either in Ireland or by a growing army of liberal critics outraged first by Castlereagh’s behavior in Ireland, and then by his support for a Europe in which Habsburg, Hohenzollern, Bourbon, and Romanov were free to dash both the hopes of the Enlightenment and the dreams of smaller nations. The abuse thrown at him would have been all too recognizable to George H. W. Bush (not to speak of his son), a lesser master of Realpolitik, but a skilled player of the diplomatic game nonetheless, whose resemblances to Castlereagh include an inarticulacy that was a gift to his opponents, mercilessly used. Castlereagh’s heavy-handed opposition to political reform at home (with its echo of earlier Irish horrors) and acid reluctance to lend even verbal assistance to liberal crusades abroad, such as Greece’s struggle against Ottoman rule, only sharpened his critics’ sense that their bogeyman was on the wrong side of history. Similar sentiments put him on the wrong side of historians too. And they wrote him out of the script.

To mention George H. W. Bush is to remember that pragmatism taken too far can be the opposite. Stasis is not always stability, sticking to the rules is not always the best policy, and precedent is not always a good substitute for imagination. It’s easy to imagine that Castlereagh, iciest of statesmen, would have abandoned the Shia of Southern Iran, and, for that matter, turned up in Kiev to advise Ukrainians to stay within their crumbling Soviet home. But to argue, as the caricature would have it, that, had not overwork and stress—there are other, more exotic explanations—driven him to suicide, Castlereagh would undoubtedly have encouraged the Concert of Europe to keep playing an unchanged tune in rapidly changing times is to underestimate the subtlety and cleverness of a man, who for all his failings, has been sold short for too long.

After this book, there’s no excuse for that.