A11.
September 17, 2025
*** Ross Rant ***
The Keynes-Hayek paradox: Why a camel driver and a CEO share the same economic DNA
I took this photograph in 2008 in rural India—a man guiding his camel through a marketplace, laden with produce which I believe was destined for local vendors. The image has stayed with me for years, not for its exotic appeal, but for what it represents about our interconnected yet paradoxical world. This farmer and I inhabit the same planet, participate in the same global economy, and live under the same pressures of supply and demand. Yet our methods of moving goods to market could hardly be more different. While I navigate web-based technologies and have access to e-commerce in a climate-controlled office, he relies on a beast of burden his ancestors might have used a thousand years ago.
This stark contrast illuminates a fundamental question that has shaped international economics and American foreign policy for over a century: Why do nations organize their economies so differently? Why does China's government direct massive state-owned enterprises while Silicon Valley entrepreneurs launch companies from garages? Why do European governments maintain extensive social safety nets while Americans celebrate individual self-reliance? How do these different approaches to economic organization affect global trade, international relations, and America's role in the world?
The answers lie not in abstract economic theory, but in a very human story—an intellectual battle between two brilliant economists whose ideas were forged in the crucible of global war, economic collapse, and social upheaval. John Maynard Keynes and Friedrich Hayek, working literally side by side during World War II blackouts in Cambridge, developed fundamentally opposing visions of how modern economies should function. Their debate, intensely personal yet profoundly philosophical, would reshape not just economic policy but the entire architecture of international relations.
Keynes, the celebrity intellectual with artistic connections and media savvy, argued that government intervention could smooth capitalism's destructive boom-and-bust cycles. His ideas promised democratic leaders a middle path between laissez-faire capitalism and communist central planning—a way to "do something" about economic crises without abandoning democratic principles. Hayek, the Austrian exile who had witnessed firsthand the collapse of empires and the rise of totalitarianism, warned that government intervention in markets would inevitably lead down a "road to serfdom." For him, free markets weren't just efficient—they were essential to human freedom.
This wasn't merely an academic dispute. The stakes were enormous: which economic philosophy would guide the reconstruction of a war-torn world? How would the emerging American superpower organize global trade and finance? What role would a government play in managing industrial economies? The answers would determine whether the twentieth century belonged to capitalism or communism, to American leadership or Soviet dominance, to individual liberty or collective planning.
The intellectual battle between Keynes and Hayek ultimately shaped the Bretton Woods system, the Marshall Plan, NATO, and every major institution of the post-war international order. Even boardrooms of the greatest, world-class multinational corporations cannot escape this intellectual battle. More importantly, their competing visions continue to influence how American policymakers understand globalization, trade policy, and economic competition with China. When US President Biden announces massive infrastructure investments, he's channeling Keynesian logic. When US President Trump makes a ten percent investment stake in Intel, he's channeling Keynesian logic. When critics warn about industrial policy distorting markets, they're echoing Hayekian concerns. When the US Treasury Secretary travels to Beijing to discuss economic cooperation, they are navigating the same fundamental tension between state-directed and market-driven approaches to development.
Understanding this historical context isn't merely academic—it's essential for anyone seeking to comprehend modern globalization and America's evolving foreign policy. The intellectual framework established in the 1940s continues to shape our understanding of economic sovereignty, international cooperation, and the relationship between prosperity and security. The camel driver in rural India and the Silicon Valley entrepreneur operate in an economic system whose basic architecture was designed by thinkers responding to crises that predated both of their births.
-Marc
+ This text is from the opening chapter of the book I am authoring, entitled Globalization and American Politics: How International Economics Redefined American Foreign Policy and Domestic Politics.
*** A11. ***
Trump arrives in UK for his second state visit: The Times reports President landed at Stansted airport at the start of a trip that is likely to involve trade deal talks and investment announcements.
UK hopes pomp and ceremony of Trump’s state visit will distract from tricky questions: Jeffrey Epstein affair will hang heavily over trip after Sir Keir Starmer sacked Lord Peter Mandelson. FT
+ Trump left one Epstein nightmare at home but is heading towards another.
Windsor poised for global spotlight with Trump state visit: AFP reports the historic town of Windsor braced Tuesday for a return to the global spotlight, as its world-famous castle prepared to host Donald Trump amid pomp, protests, support, and mammoth security.
Trump and the limits to British flattery: Keir Starmer might be tempted to hymn ‘shared values’, but such talk rings increasingly hollow. Edward Luce
King Charles III has mellowed over the past 30 years: Blandness is a feature of the British crown, not a bug. Economist
Kyiv presses allies for Russia's defeat as diplomacy with Moscow falters: Le Monde reports Volodymyr Zelensky denounced 'an obvious expansion of the war by Russia' after Russian drones flew over NATO countries.
Make Putin fear you: Ukraine says it's time Trump took a 'clear position' on Russia: NBC News reports: “All that’s lacking now is a strong sanctions package from the US,” Volodymyr Zelenskyy said in an interview, urging Washington to impose promised punishment on the Kremlin.
CNN: NATO launches ‘Eastern Sentry’ operation in response to Russian drone incursions
Cold war deterrence doesn’t work any more: Why the West is finding it so hard to deter China and Russia. Economist
Israel launches new ground offensive seeking to force end to Gaza War: WSJ reports the expanding operation comes as a UN commission concluded in a new report that Israel is committing genocide against Palestinians in Gaza.
Israeli military begins ground invasion of Gaza City: WP reports Palestinians in Gaza City reported a night of heavy bombardment. A UN commission said Israel was committing genocide in Gaza; Israel rejected it as “falsehoods.”
A futile push in Gaza will deepen Israel’s isolation: Israel’s leaders fear American support for their war is about to run out. Economist
WP: UN commission finds that Israel committed genocide in Gaza
The Bayeux Tapestry, a barometer of Franco-British relations: France's decision to lend the nearly 1,000-year-old tapestry to the United Kingdom represents part of the long and tumultuous relationship between the two countries; Brexit supporters had even turned the tapestry into a symbol of national humiliation. Le Monde
Industrial strategy needs more than ‘superstars’: The bulk of UK jobs are in the everyday economy, not internationally competitive clusters. Andy Haldane
EU and Indonesia agree trade deal: Brussels and Jakarta to sign pact next week as they seek to reduce reliance on US. FT
IEA says more oil and gas investment may be needed: AFP reports new oil and gas projects may be necessary to maintain current production levels, the IEA said Tuesday, as it is in a public feud with the Trump administration over its forecasts for lower demand.
Despite presidential animus, America’s solar industry is buzzing: And investment is on the rise. Economist
US in talks to fund multibillion-dollar mining initiative for critical minerals: FT reports investments would finance projects to extract materials crucial for defence and high-tech manufacturing.
Trump delays TikTok ban again: NYT reports it was the fourth time President Trump extended the deadline for TikTok to find a new owner or face a ban in the United States. This time, officials have said they are nearing a deal to address concerns about the app.
US and China reach deal to keep TikTok operating in US, Trump says: Nikkei reports White House extends deadline for divestment to Dec. 16.
Beijing says TikTok’s US app will use Chinese algorithm: FT reports Donald Trump extends deadline to shut down social media platform as he promises a deal with China.
US investors, Trump close in on TikTok deal with China: WSJ reports Oracle, Silver Lake, and Andreessen Horowitz are part of a consortium that would control an 80% stake.
Brazil’s ex-president plans to wield political power from prison: America calls Jair Bolsonaro’s conviction a “witch hunt.” Economist
AP: US designates Colombia as failing to cooperate in the drug war for first time in nearly 30 years
Colombia halts US arms purchases in row over drug fight delisting: AFP reports Colombia on Tuesday halted arms purchases from the United States, its biggest military partner, after Washington decertified the South American country as an anti-drugs ally for failing to halt cocaine trafficking.
Bloomberg: Trump says US military hit third drug boat from Venezuela
Trump brings the war on terrorism to the Caribbean: The military blows up another Venezuelan boat without congressional authorization. WP-Editorial
The US is preparing for war with Venezuela: Who cares if it achieves anything. Donald Trump’s policy on Latin America isn’t bothered by either consistency or the lessons of history. Daniel DePetris
JD Vance vows retribution on liberal institutions after Charlie Kirk killing: WP reports Trump also denounced groups on the left and renewed his talk of prosecutions of unnamed organizations that he says fund violent protests.
Bondi prompts broad backlash after saying she’ll target ‘hate speech’: NYT reports the attorney general also said she could investigate businesses that refused to print Charlie Kirk vigil posters as the Trump administration pushes to punish anyone who celebrated his killing.
Pam Bondi is clueless about the First Amendment Ed Kilgore
Sotomayor rebukes calls to ‘criminalize free speech’ in apparent swipe at Pam Bondi: Politico reports the justice, in public remarks, didn’t name the attorney general, who has come under fire for comments to target people over “hate speech.”
Senator Ted Cruz (R-TX) says First Amendment ‘absolutely protects hate speech’ in wake of Charlie Kirk killing: Politico reports: “You cannot be prosecuted for speech, even if it is evil and bigoted and wrong,” he says.
Carr splits from the GOP's social media crackdown after Kirk killing: Politico reports amid anger over Charlie Kirk posts, a key Trump ally said the First Amendment protects online speech.
Trump files $15 billion lawsuit against New York Times: WSJ reports the suit accuses the paper of interference in the 2024 presidential election and of “spreading false and defamatory content” about Trump.
The president is putting America’s armed forces in a bind: Turning soldiers into cops was once a last resort. How far might he go? Economist
Trump says Republicans will host a midterm convention next year: The event could be an opportunity to energize the party, which will be playing defense as it seeks to retain control of Congress. NYT
Trump’s approval hits new low: A new Economist/YouGov poll finds President Trump’s approval rating is now 17 percentage points underwater, 39% to 56%, a new low.
Tim Walz to run for a 3rd term in Minnesota: Politico reports Walz’s 2026 campaign will see him try to become the state’s longest-serving governor, after fanning speculations that he’d seek a presidential bid in 2028.
DEM-2028: Kentucky Gov. Andy Beshear (D) will visit the Granite State on October 7, holding multiple events to help Democrats at the municipal and state levels, WMUR reports.
European textile industry urges EU to take action against Chinese platforms like Shein: Le Monde reports that, in a joint statement, around 20 industry federations have called on the European Union to take immediate action to curb the rise of low-cost online sales platforms.
A tariff lesson for coffee drinkers: A case study in how border taxes raise the daily cost of living. WSJ-Editorial
14 smaller WTO members, including Singapore, tie up to support open and fair trade: Straits Times reports that 14 small and medium-sized members of the World Trade Organisation (WTO), including Singapore, established a partnership on Sept 16 to boost their trading links, amid strains on the rules-based trading system. The other members of the Future of Investment and Trade (FIT) Partnership, which was launched during a virtual ministerial meeting, are Brunei, Chile, Costa Rica, Iceland, Liechtenstein, Morocco, New Zealand, Norway, Panama, Rwanda, Switzerland, the United Arab Emirates (UAE), and Uruguay.
US auto tariffs push Mitsubishi, Mazda toward Latin America: Nikkei reports duties in No. 2 auto market still high for Japan carmakers even after cut to 15%.
VinFast bets on 'Vietnam playbook' to crack India and other Asian markets: EV maker deploys three-pronged strategy closer to home after US setback. Nikkei
Parents slam OpenAI, CharacterAI over safety in Senate hearing: Bloomberg reports OpenAI and other leading artificial intelligence companies, including Alphabet’s Google and Meta Platforms, have come under fire in recent months over their chatbots’ risks to young users. The Federal Trade Commission last week launched an investigation into those companies, as well as Elon Musk’s xAI, Snap, and Character Technologies, over potential harms their chatbots pose to children.
What exactly are AI companies trying to build? Here’s a guide. Amazon, Microsoft, Google, Meta, and OpenAI plan to spend at least $325 billion by the end of the year in pursuit of AI. We explain why they’re doing it. NYT
What has ChatGPT become? Less synthetic brain, more replacement for the whole internet. John Herrman
The AI-scraping free-for-all is coming to an end: The web would like to make a deal. John Herrman
Hollywood giants sue Chinese AI firm over copyright infringement: AFP reports top Hollywood studios filed a federal lawsuit Monday against Chinese artificial intelligence company MiniMax, alleging massive copyright infringement.
Disney, Universal, and Warner launch copyright lawsuit against Chinese AI company: FT reports Disney, Universal, and Warner Bros Discovery claim MiniMax engaged in ‘wilful and brazen’ violations.
YouTube on Tuesday boosted artificial intelligence tools for creators, saying it has paid out more than $100 billion to content-makers in the past four years.
Switzerland’s US tech ‘whale’: Swiss National Bank has more than $42bn invested in Apple, Microsoft, Amazon, Nvidia, and Meta. FT
The ‘ghost particle’ machine rewriting our understanding of the universe: At a futuristic underground observatory in China, particle physicists hope that by studying neutrinos, they can unlock the greatest secrets of science. The Times
WP: Robert Redford, movie star and Sundance founder, dies at 89
Digital dopamine is consuming America. It’s time to fight for IRL. Jake Auchincloss
Why YouTube Premium beats the BBC Rory Sutherland
Camille Cottin on comedy, the red carpet and Call My Agent! the movie: The French actor has always made clowning look cool. FT
Sabrina Carpenter, Justin Bieber, Karol G to headline Coachella: AFP reports American singer-songwriter Sabrina Carpenter, Canadian pop star Justin Bieber, and Colombian reggaeton artist Karol G will headline the prestigious Coachella festival in 2026, organizers said Tuesday.
SFC: Oakland Ballers’ manager let AI take his job. A bold call, some glitches and a win followed
Welcome to the Luka Doncic revenge tour: After an unexpected trade to the LA Lakers followed by sniping about his fitness level, the NBA star is ready to answer his doubters—both off and on the court. WSJ
The Raiders lean on Tom Brady’s insight. Other NFL teams don’t love that. Brady’s seat in the Las Vegas coaches’ booth Monday night inflamed angst over his dual role as Fox broadcaster and Raiders minority owner. WP
IndyCar reveals 17-race 2026 season with March opening: AFP reports IndyCar unveiled its 17-race schedule for the 2026 season on Tuesday with three new events, a record four races in March, and the 110th Indianapolis 500 on May 24.
Masters deal with Amazon Prime boosts US TV coverage hours: AFP reports a new deal between Augusta National and Amazon Prime Video will boost US television coverage of the Masters by four hours starting next year, club chairman Fred Riley announced Tuesday.
Enjoy the ride + plan accordingly.
-Marc
Marc A. Ross | Chief Communications Strategist @ Caracal
