appeared in the information fortress the Kremlin is building.

A week after the invasion began, when it was already clear the war was going badly for Russian troops, Mr. Putin rushed to enact a law that punishes “fake news” with up to 15 years in prison. Media regulators warned broadcasters not to refer to the war as a war. They also forced off the air two flagships of independent media — Ekho Moskvy, a liberal radio station, and Dozhd, a television station — that gave voice to the Kremlin’s opponents.

Access to Facebook, Twitter, TikTok and most recently Instagram has also been severed inside Russia — all platforms the country’s diplomats have continued to use outside to misinform. Once spread, disinformation can be tenacious, even in places with a free press and open debate, like the United States, where polls suggest that more than 40 percent of the population believes the 2020 election was stolen from former President Donald J. Trump.

“Why are people so surprised that this kind of widespread disinformation can be so effective in Russia when it was so effective here?” Ms. Thornton of the German Marshall Fund said.

As the war in Ukraine drags on, however, casualties are mounting, confronting families in Russia with the loss of fathers and sons. That could test how persuasive the Kremlin’s information campaign truly is.

The Soviet Union sought to keep a similar veil of silence around its decade-long quagmire in Afghanistan in the 1980s, but the truth seeped into public consciousness anyway, eroding the foundation of the entire system. Two years after the last troops pulled out in 1989, the Soviet Union itself collapsed.

Claire Fu contributed research.

View Source

>>> Don’t Miss Today’s BEST Amazon Deals! <<<<

Ukraine Live Updates: U.S. and NATO See No Immediate Sign of a Russian Military Drawdown

michael barbaro

From The New York Times, I’m Michael Barbaro. This is The Daily.

[music]

Today: Russia is making preparations for what many fear may be a full-scale invasion of Ukraine, prompting warnings from the U.S. of serious consequences if it does. I spoke to my colleague, Moscow bureau chief Anton Troianovski, about what Vladimir Putin wants from Ukraine and just how far he may go to get it.

It’s Wednesday, December 8.

Anton, describe the scene right now on the border between Ukraine and Russia. What does it look like? What exactly is happening there?

anton troianovski

Well, what you’re seeing on the Russian side of the border within 100 to 200 miles away is that thousands of Russian troops are on the move.

archived recording 1

A top military official says intelligence shows nearly 100,000 Russian troops —

archived recording 2

Russian troops have massed on the border of Ukraine.

archived recording 3

— troops on the border with Ukraine. And that’s prompted fears of an invasion early next year.

anton troianovski

We’re seeing a lot of social media footage of tanks and other military equipment on the move, on trains, in some cases, heading west toward the Ukraine border area from as far away as Siberia.

archived recording

Tensions between Russia and Ukraine have been building for some time in the wake of —

anton troianovski

These satellite images that we’re seeing show deployment areas around Ukraine that were empty as recently as June that are now full of military equipment-like tanks and armored personnel carriers.

archived recording

The U.S. called it unusual activity.

anton troianovski

And obviously, Russia moves its forces all the time. It does big military exercises, snap military exercises all the time, but what we’re being told is that these military movements are very unusual. Some of them are happening at night and, in other ways, seemingly designed to obfuscate where various units are going. And experts are saying we’re also seeing things like logistics and medical equipment being moved around, stuff that you really would see if there were real preparations being made for large-scale military action.

michael barbaro

So what’s happening in Russia is not just the movement of the troops that would perhaps carry out an invasion, but the kind of military personnel and equipment that would be required to deal with the repercussions of something like invading Ukraine?

anton troianovski

Yes. So American intelligence officials are seeing intelligence that shows Russia preparing for a military offensive involving an estimated 175,000 troops —

michael barbaro

Wow.

anton troianovski

— as soon as early next year.

michael barbaro

And Anton, is Ukraine preparing for what certainly looks, from what you just described, as a potential invasion?

anton troianovski

They’re in a really tough spot because no matter how much they prepare, their military would be utterly outgunned and outmatched. Ukraine doesn’t have the missile defense and air defense systems that could prevent a huge shock-and-awe campaign at the beginning of Russian military action.

They also don’t know, if and when an attack comes, which direction it might come from, because Russia could attack from any of three directions. So we’re not seeing a big mobilization in Ukraine right now, but our reporting on the ground there does show a grim and determined mood among the military. The soldiers on the border have made it clear that if it comes to it, they will be prepared to do what they can to make this as costly as possible for the other side.

michael barbaro

So I guess the question everyone has in this moment is why would Putin want to invade Ukraine right now and touch off what would no doubt be a major conflict, one in which, as you just said, Russia would have many advantages, but would nevertheless end up probably being a very deadly conflict?

anton troianovski

So obviously, we don’t yet know whether Putin has made the decision to invade. He’s clearly signaling he’s prepared to use military force. What we do know is that he has been extraordinarily fixated on the issue of Ukraine for years. But I think to really understand it, you have to look at three dates over the last 30 years that really show us why Ukraine matters so much to Putin.

michael barbaro

OK. So what’s the first date?

anton troianovski

The first one, 1991, almost exactly 30 years ago, the Soviet Union breaks up, and Ukraine becomes an independent country. For people of Putin’s generation, this was an incredibly shocking and even traumatic moment. Not only did they see and experience the collapse of an empire, of the country that they grew up in, that they worked in, that, in Putin’s case, the former K.G.B. officer that they served. But there was also a specific trauma of Ukraine breaking away. Ukraine, of all the former Soviet republics, was probably the one most valuable to Moscow.

It was a matter of history and identity with, in many ways, Russian statehood originating out of the medieval Kiev Rus civilization. There’s the matter of culture with so many Russian language writers like Gogol and Bulgakov coming from Ukraine. There was the matter of economics with Ukraine being an industrial and agricultural powerhouse during the Soviet Union, with many of the planes and missiles that the Soviets were most proud of coming from Ukraine.

michael barbaro

So there’s a sense that Ukraine is the cradle of Russian civilization, and to lose it is to lose a part of Russia itself.

anton troianovski

Yeah. And it’s a country of tens of millions of people that is also sandwiched between modern-day Russia and Western Europe. So the other issue is geopolitical, that Ukraine in that sort of Cold War security, East-versus-West mindset, Ukraine was a buffer between Moscow and the West. So 1991 was the year when that all fell apart.

And then by the time that Putin comes to power 10 years later, he’s already clearly thinking about how to reestablish Russian influence in that former Soviet space in Eastern Europe and in Ukraine in particular. We saw a lot of resources go in economically to try to bind Ukraine to Russia, whether it’s discounts on natural gas or other efforts by Russian companies, efforts to build ties to politicians and oligarchs in Ukraine. Really, a multipronged effort by Putin and the Kremlin to really gain as much influence as possible in that former Soviet space that they saw as being so key to Russia’s economic and security interests.

michael barbaro

Got it.

anton troianovski

And then fast forward to the second key date, 2014, which is the year it became clear that that strategy had failed.

archived recording

Now, to the growing unrest in Ukraine and the violent clashes between riot police and protesters.

michael barbaro

And why did that strategy fail in 2014?

anton troianovski

That was the year that Ukraine had its — what’s called its Maidan Revolution.

archived recording 1

The situation in Kiev has been very tense.

archived recording 2

Downtown Kiev has been turned into a charred battlefield following two straight nights of rioting.

anton troianovski

It’s a pro-Western revolution —

archived recording

They want nothing short of revolution, a new government and a new president.

anton troianovski

— that drove out a Russia-friendly president, that ushered in a pro-Western government, that made it its mission to reduce Ukraine’s ties with Russia and build its ties with the West.

archived recording

Ukrainians who want closer ties with the West are once again back in their thousands on Independence Square here in Kiev. They believe they —

michael barbaro

Hmm. And what was Putin’s response to that?

anton troianovski

Well, Putin didn’t even see it as a revolution. He saw it as a coup engineered by the C.I.A. and other Western intelligence agencies meant to drive Ukraine away from Russia. And —

archived recording

With stealth and mystery, Vladimir Putin made his move in Ukraine.

anton troianovski

— he used his military.

archived recording

At dawn, bands of armed men appeared at the two main airports in Crimea and seized control.

anton troianovski

He sent troops into Crimea, the Ukrainian Peninsula in the Black Sea that’s so dear to people across the former Soviet Union as kind of the warmest, most tropical place in a very cold part of the world.

archived recording

Tonight, Russian troops — hundreds, perhaps as many as 2,000, ferried in transport planes — have landed at the airports.

anton troianovski

He fomented a separatist war in Eastern Ukraine that by now has taken more than 10,000 lives and armed and backed pro-Russian separatists in that region. So that was the year 2014 when Russia’s earlier efforts to try to bind Ukraine to Moscow failed and when Russia started taking a much harder line.

michael barbaro

And this feels like a very pivotal moment because it shows Putin’s willingness to deploy the Russian military to strengthen the ties between Russia and Ukraine.

anton troianovski

Absolutely. Strengthened the ties or you can also say his efforts to enforce a Russian sphere of influence by military force. And it’s also the start of what we’ve been seeing ever since, which is Putin making it clear that he is willing to escalate, he is willing to raise the stakes and that he essentially cares more about the fate of Ukraine than the West does.

And that brings us to the third date I wanted to talk about, which is early this year, 2021, when we saw the President of Ukraine, Volodymyr Zelensky, really start taking a more aggressive anti-Russian and pro-Western tack. He cracked down on a pro-Russian oligarch and pro-Russian media. He continued with military exercises with American soldiers and with other Western forces.

He kept talking up the idea of Ukraine joining NATO. That’s the North Atlantic Treaty Organization, the Western military alliance. And in a sense, this is what Putin seems to fear the most, the idea of NATO becoming more entrenched in this region. So Putin made it clear that this was starting to cross what he describes as Russia’s red lines and that Russia was willing to take action to stop this.

michael barbaro

So to put this all together and understand why Putin is doing what he’s doing when it comes to Ukraine, we have as a backdrop here this fixation with Ukraine for historic, political, economic and cultural reasons. And what’s new and urgent here for Putin is his belief that Ukraine is on the verge of a major break with Russia and toward the West — in particular, a military alliance, NATO — and that he cannot tolerate. And so that brings us up to now and this very imminent and scary threat of a Russian invasion.

anton troianovski

That’s right, Michael. I spoke to a former advisor of Putin’s recently who described Ukraine as a trauma within a trauma for the Kremlin — so the trauma of the breakup of the Soviet Union plus the trauma of losing Ukraine specifically for all those reasons you mentioned. And the thing is it’s true.

Russia is losing Ukraine. I think objectively, though, you have to say it’s losing Ukraine in large part because of Putin’s policies, because of the aggressive actions he’s taken. And if you look at the polls before 2014, something like 12 percent of Ukrainians wanted to join NATO. Now, it’s more than half.

michael barbaro

Wow.

anton troianovski

So you put all that together, Ukraine is indeed drifting toward the West. It does seem like Putin feels like he’s running out of time to stop this and that he’s willing to escalate, he’s willing to raise the stakes, to keep Ukraine out of the West. And what we’re seeing right now on the border is all that playing out.

[music]
michael barbaro

We’ll be right back.

So Anton, the question right now is will President Putin actually carry out an invasion of Ukraine? And how should we be thinking about that?

anton troianovski

Well, it’s quite perilous, of course, to try to get inside Putin’s head, but here’s the case for invading now. Number one: NATO and the United States have made it clear that they are not going to come to Ukraine’s defense, because Ukraine is not a member of the NATO alliance, and NATO’s mutual defense pact only extends to full-fledged members. And of course, I think, politically, Putin believes that neither in the U.S., nor in Western Europe, is there the will to see soldiers from those countries die fighting for Ukraine.

michael barbaro

Right. And President Biden has just very publicly pulled the United States out of the war in Afghanistan and more or less communicated that unless American national security interests are at play, he will not be dispatching troops anywhere.

anton troianovski

Exactly. So Putin saw that, and he sees that potentially things could change. If the West does have more of a military presence in Ukraine in the future, let alone if Ukraine were to become a member of NATO at some point — it’s not going to happen in the next few years, but perhaps at some point — then attacking Ukraine becomes a much more costly proposition. So it’s a matter of war now could be less costly to Russia than war later.

michael barbaro

Right. The geopolitics of this moment may work in favor of him doing it in a way that it might not in a year or two or three.

anton troianovski

Absolutely. And then there’s a couple of other reasons. There’s the fact that if we look at everything Putin has said and written over the last year, he really seems convinced that the West is pulling Ukraine away from Russia against the will of much of the Ukrainian people. Polling doesn’t really bear that out, but Putin really seems to be convinced of that. And so it seems like he may also be thinking that Ukrainians would welcome Russian forces as liberators from some kind of Western occupation.

And then third, there’s the economy. The West has already threatened severe sanctions against Russia were it to go ahead with military action, but Russia has been essentially sanctions-proofing its economy since at least 2014, which is when it took control of Crimea and was hit by all these sanctions from the U.S. and from the E.U. So Russia’s economy is still tied to the West.

It imports a lot of stuff from the West. But in many key areas, whether it’s technology or energy extraction or agriculture, Russia is becoming more self-sufficient. And it is building ties to other parts of the world — like China, India, et cetera — that could allow it to diversify and have basically an economic base even if an invasion leads to a major crisis in its financial and economic relationship with the West.

michael barbaro

Right. So this is the argument that Putin can live with the costs of the world reacting very negatively to this invasion?

anton troianovski

Exactly.

michael barbaro

OK. And what are the reasons why an invasion of Ukraine might not happen? What would be the case against it, if you were Vladimir Putin?

anton troianovski

Well, I mean, I have to say, talking to analysts, especially here in Russia, people are very skeptical that Putin would go ahead with an invasion. They point out that he is a careful tactician and that he doesn’t like making moves that are irreversible or that could have unpredictable consequences.

So if we even look at the military action he’s taken recently, the annexation of Crimea, there wasn’t a single shot fired in that. That was a very quick special-forces-type operation. What we’re talking about here, an invasion of Ukraine, would be just a massive escalation from anything Putin has done so far. We are talking about the biggest land war in Europe since World War II, most likely. And it would have all kinds of unpredictable consequences.

There’s also the domestic situation to keep in mind. Putin does still have approval ratings above 60 percent, but things are a bit shaky here, especially with Covid. And some analysts say that Putin wouldn’t want to usher in the kind of domestic unpredictability that could start with a major war with young men coming back in body bags.

And then finally, looking at Putin’s strategy and everything that he’s said, for all we know, he doesn’t really want to annex Ukraine. He wants influence over Ukraine. And the way he thinks he can do that is through negotiations with the United States.

And that’s where the last key point here comes in, which is Putin’s real conviction that it’s the U.S. pulling the strings here and that he can accomplish his goals by getting President Biden to sit down with him and hammering out a deal about the structure of security in Eastern Europe.

So in that sense, this whole troop build-up might not be about an impending invasion at all. It might just be about coercive diplomacy, getting the U.S. to the table, and getting them to hammer out an agreement that would somehow pledge to keep Ukraine out of NATO and pledge to keep Western military infrastructure out of Ukraine and parts of the Black Sea.

michael barbaro

Well in that sense, Anton, Putin may be getting what he wants, right? Because as we speak, President Putin and President Biden have just wrapped up a very closely watched phone call about all of this. So is it possible that that call produces a breakthrough and perhaps a breakthrough that goes Putin’s way?

anton troianovski

Well, that’s very hard to imagine. And that’s really what makes this situation so volatile and so dangerous, which is that what Putin wants, the West and President Biden can’t really give.

michael barbaro

Why not?

anton troianovski

Well, for instance, pledging to keep Ukraine out of NATO would violate the Western concept that every country should have the right to decide for itself what its alliances are. President Biden obviously has spent years, going back to when he was vice president, really speaking in favor of Ukrainian sovereignty and self-determination and trying to help Ukraine take a more Western path. So Biden suddenly turning on all of that and giving Putin what he wants here is hard to imagine.

michael barbaro

Right, because that would create a very slippery slope when it comes to any country that Russia wants to have influence over. It would then know that the right playbook would be to mass troops on the border and wait for negotiation with the U.S. and hope that the U.S. would basically sell those countries out. That’s probably not something you’re saying that President Biden would willingly do.

anton troianovski

Right. And then, of course, the other question is, well, if Russia doesn’t get what it wants, if Putin doesn’t get what he wants, then what does he do?

michael barbaro

So Anton, it’s tempting to think that this could all be what you just described as a coercive diplomatic bluff by Putin to extract what he wants from President Biden and from the West. But it feels like history has taught us that Putin is willing to invade Ukraine. He did it in 2014.

History has also taught us that he’s obsessed with Ukraine, dating back to 1991 and the end of the Soviet Union. And it feels like one of the ultimate lessons of history is that we have to judge leaders based on their actions. And his actions right now are putting 175,000 troops near the border with Ukraine. And so shouldn’t we conclude that it very much looks like Putin might carry out this invasion?

anton troianovski

Yes, that’s right. And of course, there are steps that Putin could take that would be short of a full-fledged invasion that could still be really destabilizing and damaging. Here in Moscow, I’ve heard analysts speculate about maybe pinpoint airstrikes against the Ukrainian targets, or a limited invasion perhaps just specifically in that area where Russian-backed separatists are fighting.

But even such steps could have really grave consequences. And that’s why if you combine what we’re seeing on the ground in Russia, near the border, and what we’ve been hearing from President Putin and other officials here in Moscow, that all tells us that the stakes here are really high.

michael barbaro

Well, Anton, thank you very much. We appreciate your time.

anton troianovski

Thanks for having me.

michael barbaro

On Tuesday afternoon, both the White House and the Kremlin released details about the call between Putin and Biden. The White House said that Biden warned Putin of severe economic sanctions if Russia invaded Ukraine. The Kremlin said that Putin repeated his demands that Ukraine not be allowed to join NATO and that Western weapons systems not be placed inside Ukraine. But Putin made no promises to remove Russian forces from the border.

[music]

We’ll be right back.

Here’s what else you need to know today. On Tuesday night, top Democrats and Republicans said they had reached a deal to raise the country’s debt ceiling and avert the U.S. defaulting on its debt for the first time. The deal relies on a complicated one-time legislative maneuver that allows Democrats in the Senate to raise the debt ceiling without support from Republicans, since Republicans oppose raising the debt ceiling under President Biden. Without congressional action, the Treasury Department says it can no longer pay its bills after December 15.

Today’s episode was produced by Eric Krupke, Rachelle Bonja and Luke Vander Ploeg. It was edited by Michael Benoist, contains original music by Dan Powell and Marion Lozano, and was engineered by Chris Wood. Our theme music is by Jim Brunberg and Ben Landsverk of Wonderly.

That’s it for The Daily. I’m Michael Barbaro. See you tomorrow.

View Source

>>> Don’t Miss Today’s BEST Amazon Deals! <<<<

Peter Thiel, the Right’s Would-Be Kingmaker

Mr. Thiel has attracted the most attention for two $10 million donations to the Senate candidates Blake Masters in Arizona and J.D. Vance in Ohio. Like Mr. Thiel, the men are tech investors with pedigrees from elite universities who cast themselves as antagonists to the establishment. They have also worked for the billionaire and been financially dependent on him. Mr. Masters, the chief operating officer of Thiel Capital, the investor’s family office, has promised to leave that job before Arizona’s August primary.

Mr. Thiel, who declined to comment for this article, announced last week that he would leave the board of Meta, the parent company of Facebook, which conservatives have accused of censorship. One reason for the change: He plans to focus more on politics.

Born in West Germany and raised in South Africa and the San Francisco Bay Area, Mr. Thiel showed his provocative side at Stanford in the late 1980s. Classmates recalled Mr. Thiel, who studied philosophy and law, describing South Africa’s apartheid as a sound economic system. (A spokesman for Mr. Thiel has denied that he supported apartheid.)

Mr. Thiel also helped found The Stanford Review, a conservative campus paper that sought to provide “alternative views” to what he deemed left-wing orthodoxy.

In 1995, he co-wrote a book, “The Diversity Myth,” arguing that “the extreme focus on racism” had caused greater societal tension and acrimony. Rape, he and his co-author, David Sacks, wrote, sometimes included “seductions that are later regretted.” (Mr. Thiel has apologized for the book.)

In 1998, Mr. Thiel helped create what would become the digital payments company PayPal. He became Facebook’s first outside investor in 2004 and established the venture capital firm Founders Fund a year later. Forbes puts his fortune at $2.6 billion.

one 2009 piece, Mr. Thiel, who called himself a libertarian, wrote that he had come to “no longer believe that freedom and democracy are compatible,” arguing that American politics would always be hostile to free-market ideals, and that politics was about interfering with other people’s lives without their consent. Since then, he has hosted and attended events with white nationalists and alt-right figures.

His political giving evolved with those views. He donated lavishly to Ron Paul’s 2008 and 2012 presidential campaigns before turning to candidates who were more extreme than the Republican establishment.

In 2013, Curtis Yarvin, an entrepreneur who has voiced racist beliefs and said democracy was a destructive system of government, emailed Mr. Thiel. Mr. Yarvin wrote that Mr. Cruz, then a newly elected senator, “needs to purge every single traitor” from the Republican Party. In the email, which The Times obtained, Mr. Yarvin argued that it didn’t matter if those candidates lost general elections or cost the party control in Congress.

Mr. Thiel, who had donated to Mr. Cruz’s 2012 campaign, replied, “It’s relatively safe to support Cruz (for me) because he threatens the Republican establishment.”

Mr. Thiel used his money to fund other causes. In 2016, he was revealed as the secret funder of a lawsuit that targeted Gawker Media, which had reported he was gay. Gawker declared bankruptcy, partly from the costs of fighting the lawsuit.

proud to be a gay Republican supporting Mr. Trump. He later donated $1.25 million to the candidate.

After Mr. Trump won, Mr. Thiel was named to the president-elect’s executive transition team. At a meeting with tech leaders at Trump Tower in Manhattan in December 2016, Mr. Trump told Mr. Thiel, “You’re a very special guy.”

A month later, Mr. Thiel, a naturalized American, was revealed to have also obtained citizenship in New Zealand. That prompted a furor, especially after Mr. Trump had urged people to pledge “total allegiance to the United States.”

During Mr. Trump’s presidency, Mr. Thiel became frustrated with the administration. “There are all these ways that things have fallen short,” he told The Times in 2018.

In 2020, he stayed on the sidelines. His only notable federal election donation was to Kris Kobach, a Trump ally and former secretary of state of Kansas known for his hard-line views on immigration. (Mr. Kobach lost his primary bid for the Senate.)

Mr. Thiel’s personal priorities also changed. In 2016, he announced that he was moving from San Francisco to Los Angeles. The next year, he married a longtime boyfriend, Matt Danzeisen; they have two children.

Mr. Thiel reduced his business commitments and started pondering leaving Meta’s board, which he had joined in 2005, two of the people with knowledge of his thinking said. At an October event held by a conservative tech group in Miami, he alluded to his frustration with Facebook, which was increasingly removing certain kinds of speech and had barred Mr. Trump.

a $13 million mansion in Washington from Wilbur Ross, Mr. Trump’s commerce secretary. In October, he spoke at the event for the Federalist Society at Stanford and at the National Conservatism Conference.

He also rebuilt his relationship with Mr. Trump. Since the 2020 election, they have met at least three times in New York and at Mar-a-Lago, sometimes with Mr. Masters or Mr. Vance. And Mr. Thiel invested in Mr. McEntee’s company, which is building a dating app for conservatives called the RightStuff.

Mr. McEntee declined to answer questions about his app and said Mr. Thiel was “a great guy.” Mr. Trump’s representatives did not respond to requests for comment.

Mr. Thiel’s political giving ramped up last spring with his $10 million checks to PACs supporting Mr. Vance and Mr. Masters. The sums were his biggest and the largest ever one-time contributions to a PAC backing a single candidate, according to OpenSecrets.

Like Mr. Trump in 2016, Mr. Vance and Mr. Masters lack experience in politics. Mr. Vance, the venture capitalist who wrote the best-selling memoir “Hillbilly Elegy,” met Mr. Thiel a decade ago when the billionaire delivered a lecture at Yale Law School, where Mr. Vance was a student.

Zero to One.” In 2020, Mr. Masters reported more than $1.1 million in salary from Thiel Capital and book royalties.

Mr. Vance, Mr. Masters and their campaigns did not respond to requests for comment.

Both candidates have repeated the Trumpian lie of election fraud, with Mr. Masters stating in a November campaign ad, “I think Trump won in 2020.” They have also made Mr. Thiel a selling point in their campaigns.

In November, Mr. Vance wrote on Twitter that anyone who donated $10,800 to his campaign could attend a small group dinner with him and Mr. Thiel. Mr. Masters offered the same opportunity for a meal with Mr. Thiel and raised $550,000 by selling nonfungible tokens, or NFTs, of “Zero to One” digital art that would give holders “access to parties with me and Peter.”

a 20-minute speech at the National Conservatism Conference in October, he said nationalism was “a corrective” to the “brain-dead, one-world state” of globalism. He also blasted the Biden administration.

“We have the zombie retreads just busy rearranging the deck chairs,” he said. “We need dissident voices more than ever.”

Cade Metz contributed reporting. Rachel Shorey and Kitty Bennett contributed research.

View Source

>>> Don’t Miss Today’s BEST Amazon Deals! <<<<

Inflation and Deficits Don’t Dim the Appeal of U.S. Bonds

Mr. Bernstein stipulated that while debt financing has its place, the White House also believes it has firm limits within its agenda. “The outcome of all this is going to be some mix of progressively raised revenues and investments in essential public goods with a high return financed by some borrowing.”

What would have to happen for these rock-bottom borrowing costs to rise significantly? There could be a crisis of confidence in Fed policy, a geopolitical crisis or steep increases in the Fed’s key interest rates in an attempt to kill off inflation. In a more easily imagined situation, some believe that if inflation remains near its current levels into the second half of the year, bond buyers may lose patience and reduce purchases until yields are more in tune with rising prices.

The resulting higher interest payments on debt would force budget cuts, said Marc Goldwein, the senior policy director at the Committee for a Responsible Federal Budget. Mr. Goldwein’s organization, which pushes for balanced budgets, estimated that even under this past year’s low rates, the federal government would spend over $300 billion on interest payments — more than its individual outlays on food stamps, housing, disability insurance, science, education or technology.

Last month, Brian Riedl, a senior fellow at the right-leaning Manhattan Institute, published a paper titled “How Higher Interest Rates Could Push Washington Toward a Federal Debt Crisis.” It concludes that “debt is already projected to grow to unsustainable levels even before any new proposals are enacted.”

The offsetting global and demographic trends that have been pushing rates down, Mr. Reidl writes, are an “accidental, and possibly temporary, subsidy to heavy-borrowing federal lawmakers.” Assuming that those trends will endure, he said, would be like becoming a self-satisfied football team that “managed to improve its overall win-loss record over several seasons — despite a rapidly worsening defense — because its offense kept improving enough to barely outscore its opponents.”

But at least one historical trend suggests that rates will remain tame: an overall decline in real interest rates worldwide dating back six centuries.

A paper published in 2020 by the Bank of England and written by Paul Schmelzing, a postdoctoral research associate at the Yale School of Management, found that as political and financial systems have globalized, innovated and matured, defaults among the safest borrowers — strong governments — have continuously declined. According to his paper, one ramification may be that “irrespective of particular monetary and fiscal responses, real rates could soon enter permanently negative territory,” yielding less than the rate of inflation.

View Source

>>> Don’t Miss Today’s BEST Amazon Deals! <<<<

Ukraine Live Updates: Russia Holds Large Military Drills Amid No Sign of Diplomatic Progress

michael barbaro

From The New York Times, I’m Michael Barbaro. This is The Daily.

[music]

Today: Russia is making preparations for what many fear may be a full-scale invasion of Ukraine, prompting warnings from the U.S. of serious consequences if it does. I spoke to my colleague, Moscow bureau chief Anton Troianovski, about what Vladimir Putin wants from Ukraine and just how far he may go to get it.

It’s Wednesday, December 8.

Anton, describe the scene right now on the border between Ukraine and Russia. What does it look like? What exactly is happening there?

anton troianovski

Well, what you’re seeing on the Russian side of the border within 100 to 200 miles away is that thousands of Russian troops are on the move.

archived recording 1

A top military official says intelligence shows nearly 100,000 Russian troops —

archived recording 2

Russian troops have massed on the border of Ukraine.

archived recording 3

— troops on the border with Ukraine. And that’s prompted fears of an invasion early next year.

anton troianovski

We’re seeing a lot of social media footage of tanks and other military equipment on the move, on trains, in some cases, heading west toward the Ukraine border area from as far away as Siberia.

archived recording

Tensions between Russia and Ukraine have been building for some time in the wake of —

anton troianovski

These satellite images that we’re seeing show deployment areas around Ukraine that were empty as recently as June that are now full of military equipment-like tanks and armored personnel carriers.

archived recording

The U.S. called it unusual activity.

anton troianovski

And obviously, Russia moves its forces all the time. It does big military exercises, snap military exercises all the time, but what we’re being told is that these military movements are very unusual. Some of them are happening at night and, in other ways, seemingly designed to obfuscate where various units are going. And experts are saying we’re also seeing things like logistics and medical equipment being moved around, stuff that you really would see if there were real preparations being made for large-scale military action.

michael barbaro

So what’s happening in Russia is not just the movement of the troops that would perhaps carry out an invasion, but the kind of military personnel and equipment that would be required to deal with the repercussions of something like invading Ukraine?

anton troianovski

Yes. So American intelligence officials are seeing intelligence that shows Russia preparing for a military offensive involving an estimated 175,000 troops —

michael barbaro

Wow.

anton troianovski

— as soon as early next year.

michael barbaro

And Anton, is Ukraine preparing for what certainly looks, from what you just described, as a potential invasion?

anton troianovski

They’re in a really tough spot because no matter how much they prepare, their military would be utterly outgunned and outmatched. Ukraine doesn’t have the missile defense and air defense systems that could prevent a huge shock-and-awe campaign at the beginning of Russian military action.

They also don’t know, if and when an attack comes, which direction it might come from, because Russia could attack from any of three directions. So we’re not seeing a big mobilization in Ukraine right now, but our reporting on the ground there does show a grim and determined mood among the military. The soldiers on the border have made it clear that if it comes to it, they will be prepared to do what they can to make this as costly as possible for the other side.

michael barbaro

So I guess the question everyone has in this moment is why would Putin want to invade Ukraine right now and touch off what would no doubt be a major conflict, one in which, as you just said, Russia would have many advantages, but would nevertheless end up probably being a very deadly conflict?

anton troianovski

So obviously, we don’t yet know whether Putin has made the decision to invade. He’s clearly signaling he’s prepared to use military force. What we do know is that he has been extraordinarily fixated on the issue of Ukraine for years. But I think to really understand it, you have to look at three dates over the last 30 years that really show us why Ukraine matters so much to Putin.

michael barbaro

OK. So what’s the first date?

anton troianovski

The first one, 1991, almost exactly 30 years ago, the Soviet Union breaks up, and Ukraine becomes an independent country. For people of Putin’s generation, this was an incredibly shocking and even traumatic moment. Not only did they see and experience the collapse of an empire, of the country that they grew up in, that they worked in, that, in Putin’s case, the former K.G.B. officer that they served. But there was also a specific trauma of Ukraine breaking away. Ukraine, of all the former Soviet republics, was probably the one most valuable to Moscow.

It was a matter of history and identity with, in many ways, Russian statehood originating out of the medieval Kiev Rus civilization. There’s the matter of culture with so many Russian language writers like Gogol and Bulgakov coming from Ukraine. There was the matter of economics with Ukraine being an industrial and agricultural powerhouse during the Soviet Union, with many of the planes and missiles that the Soviets were most proud of coming from Ukraine.

michael barbaro

So there’s a sense that Ukraine is the cradle of Russian civilization, and to lose it is to lose a part of Russia itself.

anton troianovski

Yeah. And it’s a country of tens of millions of people that is also sandwiched between modern-day Russia and Western Europe. So the other issue is geopolitical, that Ukraine in that sort of Cold War security, East-versus-West mindset, Ukraine was a buffer between Moscow and the West. So 1991 was the year when that all fell apart.

And then by the time that Putin comes to power 10 years later, he’s already clearly thinking about how to reestablish Russian influence in that former Soviet space in Eastern Europe and in Ukraine in particular. We saw a lot of resources go in economically to try to bind Ukraine to Russia, whether it’s discounts on natural gas or other efforts by Russian companies, efforts to build ties to politicians and oligarchs in Ukraine. Really, a multipronged effort by Putin and the Kremlin to really gain as much influence as possible in that former Soviet space that they saw as being so key to Russia’s economic and security interests.

michael barbaro

Got it.

anton troianovski

And then fast forward to the second key date, 2014, which is the year it became clear that that strategy had failed.

archived recording

Now, to the growing unrest in Ukraine and the violent clashes between riot police and protesters.

michael barbaro

And why did that strategy fail in 2014?

anton troianovski

That was the year that Ukraine had its — what’s called its Maidan Revolution.

archived recording 1

The situation in Kiev has been very tense.

archived recording 2

Downtown Kiev has been turned into a charred battlefield following two straight nights of rioting.

anton troianovski

It’s a pro-Western revolution —

archived recording

They want nothing short of revolution, a new government and a new president.

anton troianovski

— that drove out a Russia-friendly president, that ushered in a pro-Western government, that made it its mission to reduce Ukraine’s ties with Russia and build its ties with the West.

archived recording

Ukrainians who want closer ties with the West are once again back in their thousands on Independence Square here in Kiev. They believe they —

michael barbaro

Hmm. And what was Putin’s response to that?

anton troianovski

Well, Putin didn’t even see it as a revolution. He saw it as a coup engineered by the C.I.A. and other Western intelligence agencies meant to drive Ukraine away from Russia. And —

archived recording

With stealth and mystery, Vladimir Putin made his move in Ukraine.

anton troianovski

— he used his military.

archived recording

At dawn, bands of armed men appeared at the two main airports in Crimea and seized control.

anton troianovski

He sent troops into Crimea, the Ukrainian Peninsula in the Black Sea that’s so dear to people across the former Soviet Union as kind of the warmest, most tropical place in a very cold part of the world.

archived recording

Tonight, Russian troops — hundreds, perhaps as many as 2,000, ferried in transport planes — have landed at the airports.

anton troianovski

He fomented a separatist war in Eastern Ukraine that by now has taken more than 10,000 lives and armed and backed pro-Russian separatists in that region. So that was the year 2014 when Russia’s earlier efforts to try to bind Ukraine to Moscow failed and when Russia started taking a much harder line.

michael barbaro

And this feels like a very pivotal moment because it shows Putin’s willingness to deploy the Russian military to strengthen the ties between Russia and Ukraine.

anton troianovski

Absolutely. Strengthened the ties or you can also say his efforts to enforce a Russian sphere of influence by military force. And it’s also the start of what we’ve been seeing ever since, which is Putin making it clear that he is willing to escalate, he is willing to raise the stakes and that he essentially cares more about the fate of Ukraine than the West does.

And that brings us to the third date I wanted to talk about, which is early this year, 2021, when we saw the President of Ukraine, Volodymyr Zelensky, really start taking a more aggressive anti-Russian and pro-Western tack. He cracked down on a pro-Russian oligarch and pro-Russian media. He continued with military exercises with American soldiers and with other Western forces.

He kept talking up the idea of Ukraine joining NATO. That’s the North Atlantic Treaty Organization, the Western military alliance. And in a sense, this is what Putin seems to fear the most, the idea of NATO becoming more entrenched in this region. So Putin made it clear that this was starting to cross what he describes as Russia’s red lines and that Russia was willing to take action to stop this.

michael barbaro

So to put this all together and understand why Putin is doing what he’s doing when it comes to Ukraine, we have as a backdrop here this fixation with Ukraine for historic, political, economic and cultural reasons. And what’s new and urgent here for Putin is his belief that Ukraine is on the verge of a major break with Russia and toward the West — in particular, a military alliance, NATO — and that he cannot tolerate. And so that brings us up to now and this very imminent and scary threat of a Russian invasion.

anton troianovski

That’s right, Michael. I spoke to a former advisor of Putin’s recently who described Ukraine as a trauma within a trauma for the Kremlin — so the trauma of the breakup of the Soviet Union plus the trauma of losing Ukraine specifically for all those reasons you mentioned. And the thing is it’s true.

Russia is losing Ukraine. I think objectively, though, you have to say it’s losing Ukraine in large part because of Putin’s policies, because of the aggressive actions he’s taken. And if you look at the polls before 2014, something like 12 percent of Ukrainians wanted to join NATO. Now, it’s more than half.

michael barbaro

Wow.

anton troianovski

So you put all that together, Ukraine is indeed drifting toward the West. It does seem like Putin feels like he’s running out of time to stop this and that he’s willing to escalate, he’s willing to raise the stakes, to keep Ukraine out of the West. And what we’re seeing right now on the border is all that playing out.

[music]
michael barbaro

We’ll be right back.

So Anton, the question right now is will President Putin actually carry out an invasion of Ukraine? And how should we be thinking about that?

anton troianovski

Well, it’s quite perilous, of course, to try to get inside Putin’s head, but here’s the case for invading now. Number one: NATO and the United States have made it clear that they are not going to come to Ukraine’s defense, because Ukraine is not a member of the NATO alliance, and NATO’s mutual defense pact only extends to full-fledged members. And of course, I think, politically, Putin believes that neither in the U.S., nor in Western Europe, is there the will to see soldiers from those countries die fighting for Ukraine.

michael barbaro

Right. And President Biden has just very publicly pulled the United States out of the war in Afghanistan and more or less communicated that unless American national security interests are at play, he will not be dispatching troops anywhere.

anton troianovski

Exactly. So Putin saw that, and he sees that potentially things could change. If the West does have more of a military presence in Ukraine in the future, let alone if Ukraine were to become a member of NATO at some point — it’s not going to happen in the next few years, but perhaps at some point — then attacking Ukraine becomes a much more costly proposition. So it’s a matter of war now could be less costly to Russia than war later.

michael barbaro

Right. The geopolitics of this moment may work in favor of him doing it in a way that it might not in a year or two or three.

anton troianovski

Absolutely. And then there’s a couple of other reasons. There’s the fact that if we look at everything Putin has said and written over the last year, he really seems convinced that the West is pulling Ukraine away from Russia against the will of much of the Ukrainian people. Polling doesn’t really bear that out, but Putin really seems to be convinced of that. And so it seems like he may also be thinking that Ukrainians would welcome Russian forces as liberators from some kind of Western occupation.

And then third, there’s the economy. The West has already threatened severe sanctions against Russia were it to go ahead with military action, but Russia has been essentially sanctions-proofing its economy since at least 2014, which is when it took control of Crimea and was hit by all these sanctions from the U.S. and from the E.U. So Russia’s economy is still tied to the West.

It imports a lot of stuff from the West. But in many key areas, whether it’s technology or energy extraction or agriculture, Russia is becoming more self-sufficient. And it is building ties to other parts of the world — like China, India, et cetera — that could allow it to diversify and have basically an economic base even if an invasion leads to a major crisis in its financial and economic relationship with the West.

michael barbaro

Right. So this is the argument that Putin can live with the costs of the world reacting very negatively to this invasion?

anton troianovski

Exactly.

michael barbaro

OK. And what are the reasons why an invasion of Ukraine might not happen? What would be the case against it, if you were Vladimir Putin?

anton troianovski

Well, I mean, I have to say, talking to analysts, especially here in Russia, people are very skeptical that Putin would go ahead with an invasion. They point out that he is a careful tactician and that he doesn’t like making moves that are irreversible or that could have unpredictable consequences.

So if we even look at the military action he’s taken recently, the annexation of Crimea, there wasn’t a single shot fired in that. That was a very quick special-forces-type operation. What we’re talking about here, an invasion of Ukraine, would be just a massive escalation from anything Putin has done so far. We are talking about the biggest land war in Europe since World War II, most likely. And it would have all kinds of unpredictable consequences.

There’s also the domestic situation to keep in mind. Putin does still have approval ratings above 60 percent, but things are a bit shaky here, especially with Covid. And some analysts say that Putin wouldn’t want to usher in the kind of domestic unpredictability that could start with a major war with young men coming back in body bags.

And then finally, looking at Putin’s strategy and everything that he’s said, for all we know, he doesn’t really want to annex Ukraine. He wants influence over Ukraine. And the way he thinks he can do that is through negotiations with the United States.

And that’s where the last key point here comes in, which is Putin’s real conviction that it’s the U.S. pulling the strings here and that he can accomplish his goals by getting President Biden to sit down with him and hammering out a deal about the structure of security in Eastern Europe.

So in that sense, this whole troop build-up might not be about an impending invasion at all. It might just be about coercive diplomacy, getting the U.S. to the table, and getting them to hammer out an agreement that would somehow pledge to keep Ukraine out of NATO and pledge to keep Western military infrastructure out of Ukraine and parts of the Black Sea.

michael barbaro

Well in that sense, Anton, Putin may be getting what he wants, right? Because as we speak, President Putin and President Biden have just wrapped up a very closely watched phone call about all of this. So is it possible that that call produces a breakthrough and perhaps a breakthrough that goes Putin’s way?

anton troianovski

Well, that’s very hard to imagine. And that’s really what makes this situation so volatile and so dangerous, which is that what Putin wants, the West and President Biden can’t really give.

michael barbaro

Why not?

anton troianovski

Well, for instance, pledging to keep Ukraine out of NATO would violate the Western concept that every country should have the right to decide for itself what its alliances are. President Biden obviously has spent years, going back to when he was vice president, really speaking in favor of Ukrainian sovereignty and self-determination and trying to help Ukraine take a more Western path. So Biden suddenly turning on all of that and giving Putin what he wants here is hard to imagine.

michael barbaro

Right, because that would create a very slippery slope when it comes to any country that Russia wants to have influence over. It would then know that the right playbook would be to mass troops on the border and wait for negotiation with the U.S. and hope that the U.S. would basically sell those countries out. That’s probably not something you’re saying that President Biden would willingly do.

anton troianovski

Right. And then, of course, the other question is, well, if Russia doesn’t get what it wants, if Putin doesn’t get what he wants, then what does he do?

michael barbaro

So Anton, it’s tempting to think that this could all be what you just described as a coercive diplomatic bluff by Putin to extract what he wants from President Biden and from the West. But it feels like history has taught us that Putin is willing to invade Ukraine. He did it in 2014.

History has also taught us that he’s obsessed with Ukraine, dating back to 1991 and the end of the Soviet Union. And it feels like one of the ultimate lessons of history is that we have to judge leaders based on their actions. And his actions right now are putting 175,000 troops near the border with Ukraine. And so shouldn’t we conclude that it very much looks like Putin might carry out this invasion?

anton troianovski

Yes, that’s right. And of course, there are steps that Putin could take that would be short of a full-fledged invasion that could still be really destabilizing and damaging. Here in Moscow, I’ve heard analysts speculate about maybe pinpoint airstrikes against the Ukrainian targets, or a limited invasion perhaps just specifically in that area where Russian-backed separatists are fighting.

But even such steps could have really grave consequences. And that’s why if you combine what we’re seeing on the ground in Russia, near the border, and what we’ve been hearing from President Putin and other officials here in Moscow, that all tells us that the stakes here are really high.

michael barbaro

Well, Anton, thank you very much. We appreciate your time.

anton troianovski

Thanks for having me.

michael barbaro

On Tuesday afternoon, both the White House and the Kremlin released details about the call between Putin and Biden. The White House said that Biden warned Putin of severe economic sanctions if Russia invaded Ukraine. The Kremlin said that Putin repeated his demands that Ukraine not be allowed to join NATO and that Western weapons systems not be placed inside Ukraine. But Putin made no promises to remove Russian forces from the border.

[music]

We’ll be right back.

Here’s what else you need to know today. On Tuesday night, top Democrats and Republicans said they had reached a deal to raise the country’s debt ceiling and avert the U.S. defaulting on its debt for the first time. The deal relies on a complicated one-time legislative maneuver that allows Democrats in the Senate to raise the debt ceiling without support from Republicans, since Republicans oppose raising the debt ceiling under President Biden. Without congressional action, the Treasury Department says it can no longer pay its bills after December 15.

Today’s episode was produced by Eric Krupke, Rachelle Bonja and Luke Vander Ploeg. It was edited by Michael Benoist, contains original music by Dan Powell and Marion Lozano, and was engineered by Chris Wood. Our theme music is by Jim Brunberg and Ben Landsverk of Wonderly.

That’s it for The Daily. I’m Michael Barbaro. See you tomorrow.

View Source

>>> Don’t Miss Today’s BEST Amazon Deals! <<<<

Live Updates: Blinken and Lavrov Pledge to Keep Talking as Military Buildup Continues Around Ukraine

michael barbaro

From The New York Times, I’m Michael Barbaro. This is The Daily.

[music]

Today: Russia is making preparations for what many fear may be a full-scale invasion of Ukraine, prompting warnings from the U.S. of serious consequences if it does. I spoke to my colleague, Moscow bureau chief Anton Troianovski, about what Vladimir Putin wants from Ukraine and just how far he may go to get it.

It’s Wednesday, December 8.

Anton, describe the scene right now on the border between Ukraine and Russia. What does it look like? What exactly is happening there?

anton troianovski

Well, what you’re seeing on the Russian side of the border within 100 to 200 miles away is that thousands of Russian troops are on the move.

archived recording 1

A top military official says intelligence shows nearly 100,000 Russian troops —

archived recording 2

Russian troops have massed on the border of Ukraine.

archived recording 3

— troops on the border with Ukraine. And that’s prompted fears of an invasion early next year.

anton troianovski

We’re seeing a lot of social media footage of tanks and other military equipment on the move, on trains, in some cases, heading west toward the Ukraine border area from as far away as Siberia.

archived recording

Tensions between Russia and Ukraine have been building for some time in the wake of —

anton troianovski

These satellite images that we’re seeing show deployment areas around Ukraine that were empty as recently as June that are now full of military equipment-like tanks and armored personnel carriers.

archived recording

The U.S. called it unusual activity.

anton troianovski

And obviously, Russia moves its forces all the time. It does big military exercises, snap military exercises all the time, but what we’re being told is that these military movements are very unusual. Some of them are happening at night and, in other ways, seemingly designed to obfuscate where various units are going. And experts are saying we’re also seeing things like logistics and medical equipment being moved around, stuff that you really would see if there were real preparations being made for large-scale military action.

michael barbaro

So what’s happening in Russia is not just the movement of the troops that would perhaps carry out an invasion, but the kind of military personnel and equipment that would be required to deal with the repercussions of something like invading Ukraine?

anton troianovski

Yes. So American intelligence officials are seeing intelligence that shows Russia preparing for a military offensive involving an estimated 175,000 troops —

michael barbaro

Wow.

anton troianovski

— as soon as early next year.

michael barbaro

And Anton, is Ukraine preparing for what certainly looks, from what you just described, as a potential invasion?

anton troianovski

They’re in a really tough spot because no matter how much they prepare, their military would be utterly outgunned and outmatched. Ukraine doesn’t have the missile defense and air defense systems that could prevent a huge shock-and-awe campaign at the beginning of Russian military action.

They also don’t know, if and when an attack comes, which direction it might come from, because Russia could attack from any of three directions. So we’re not seeing a big mobilization in Ukraine right now, but our reporting on the ground there does show a grim and determined mood among the military. The soldiers on the border have made it clear that if it comes to it, they will be prepared to do what they can to make this as costly as possible for the other side.

michael barbaro

So I guess the question everyone has in this moment is why would Putin want to invade Ukraine right now and touch off what would no doubt be a major conflict, one in which, as you just said, Russia would have many advantages, but would nevertheless end up probably being a very deadly conflict?

anton troianovski

So obviously, we don’t yet know whether Putin has made the decision to invade. He’s clearly signaling he’s prepared to use military force. What we do know is that he has been extraordinarily fixated on the issue of Ukraine for years. But I think to really understand it, you have to look at three dates over the last 30 years that really show us why Ukraine matters so much to Putin.

michael barbaro

OK. So what’s the first date?

anton troianovski

The first one, 1991, almost exactly 30 years ago, the Soviet Union breaks up, and Ukraine becomes an independent country. For people of Putin’s generation, this was an incredibly shocking and even traumatic moment. Not only did they see and experience the collapse of an empire, of the country that they grew up in, that they worked in, that, in Putin’s case, the former K.G.B. officer that they served. But there was also a specific trauma of Ukraine breaking away. Ukraine, of all the former Soviet republics, was probably the one most valuable to Moscow.

It was a matter of history and identity with, in many ways, Russian statehood originating out of the medieval Kiev Rus civilization. There’s the matter of culture with so many Russian language writers like Gogol and Bulgakov coming from Ukraine. There was the matter of economics with Ukraine being an industrial and agricultural powerhouse during the Soviet Union, with many of the planes and missiles that the Soviets were most proud of coming from Ukraine.

michael barbaro

So there’s a sense that Ukraine is the cradle of Russian civilization, and to lose it is to lose a part of Russia itself.

anton troianovski

Yeah. And it’s a country of tens of millions of people that is also sandwiched between modern-day Russia and Western Europe. So the other issue is geopolitical, that Ukraine in that sort of Cold War security, East-versus-West mindset, Ukraine was a buffer between Moscow and the West. So 1991 was the year when that all fell apart.

And then by the time that Putin comes to power 10 years later, he’s already clearly thinking about how to reestablish Russian influence in that former Soviet space in Eastern Europe and in Ukraine in particular. We saw a lot of resources go in economically to try to bind Ukraine to Russia, whether it’s discounts on natural gas or other efforts by Russian companies, efforts to build ties to politicians and oligarchs in Ukraine. Really, a multipronged effort by Putin and the Kremlin to really gain as much influence as possible in that former Soviet space that they saw as being so key to Russia’s economic and security interests.

michael barbaro

Got it.

anton troianovski

And then fast forward to the second key date, 2014, which is the year it became clear that that strategy had failed.

archived recording

Now, to the growing unrest in Ukraine and the violent clashes between riot police and protesters.

michael barbaro

And why did that strategy fail in 2014?

anton troianovski

That was the year that Ukraine had its — what’s called its Maidan Revolution.

archived recording 1

The situation in Kiev has been very tense.

archived recording 2

Downtown Kiev has been turned into a charred battlefield following two straight nights of rioting.

anton troianovski

It’s a pro-Western revolution —

archived recording

They want nothing short of revolution, a new government and a new president.

anton troianovski

— that drove out a Russia-friendly president, that ushered in a pro-Western government, that made it its mission to reduce Ukraine’s ties with Russia and build its ties with the West.

archived recording

Ukrainians who want closer ties with the West are once again back in their thousands on Independence Square here in Kiev. They believe they —

michael barbaro

Hmm. And what was Putin’s response to that?

anton troianovski

Well, Putin didn’t even see it as a revolution. He saw it as a coup engineered by the C.I.A. and other Western intelligence agencies meant to drive Ukraine away from Russia. And —

archived recording

With stealth and mystery, Vladimir Putin made his move in Ukraine.

anton troianovski

— he used his military.

archived recording

At dawn, bands of armed men appeared at the two main airports in Crimea and seized control.

anton troianovski

He sent troops into Crimea, the Ukrainian Peninsula in the Black Sea that’s so dear to people across the former Soviet Union as kind of the warmest, most tropical place in a very cold part of the world.

archived recording

Tonight, Russian troops — hundreds, perhaps as many as 2,000, ferried in transport planes — have landed at the airports.

anton troianovski

He fomented a separatist war in Eastern Ukraine that by now has taken more than 10,000 lives and armed and backed pro-Russian separatists in that region. So that was the year 2014 when Russia’s earlier efforts to try to bind Ukraine to Moscow failed and when Russia started taking a much harder line.

michael barbaro

And this feels like a very pivotal moment because it shows Putin’s willingness to deploy the Russian military to strengthen the ties between Russia and Ukraine.

anton troianovski

Absolutely. Strengthened the ties or you can also say his efforts to enforce a Russian sphere of influence by military force. And it’s also the start of what we’ve been seeing ever since, which is Putin making it clear that he is willing to escalate, he is willing to raise the stakes and that he essentially cares more about the fate of Ukraine than the West does.

And that brings us to the third date I wanted to talk about, which is early this year, 2021, when we saw the President of Ukraine, Volodymyr Zelensky, really start taking a more aggressive anti-Russian and pro-Western tack. He cracked down on a pro-Russian oligarch and pro-Russian media. He continued with military exercises with American soldiers and with other Western forces.

He kept talking up the idea of Ukraine joining NATO. That’s the North Atlantic Treaty Organization, the Western military alliance. And in a sense, this is what Putin seems to fear the most, the idea of NATO becoming more entrenched in this region. So Putin made it clear that this was starting to cross what he describes as Russia’s red lines and that Russia was willing to take action to stop this.

michael barbaro

So to put this all together and understand why Putin is doing what he’s doing when it comes to Ukraine, we have as a backdrop here this fixation with Ukraine for historic, political, economic and cultural reasons. And what’s new and urgent here for Putin is his belief that Ukraine is on the verge of a major break with Russia and toward the West — in particular, a military alliance, NATO — and that he cannot tolerate. And so that brings us up to now and this very imminent and scary threat of a Russian invasion.

anton troianovski

That’s right, Michael. I spoke to a former advisor of Putin’s recently who described Ukraine as a trauma within a trauma for the Kremlin — so the trauma of the breakup of the Soviet Union plus the trauma of losing Ukraine specifically for all those reasons you mentioned. And the thing is it’s true.

Russia is losing Ukraine. I think objectively, though, you have to say it’s losing Ukraine in large part because of Putin’s policies, because of the aggressive actions he’s taken. And if you look at the polls before 2014, something like 12 percent of Ukrainians wanted to join NATO. Now, it’s more than half.

michael barbaro

Wow.

anton troianovski

So you put all that together, Ukraine is indeed drifting toward the West. It does seem like Putin feels like he’s running out of time to stop this and that he’s willing to escalate, he’s willing to raise the stakes, to keep Ukraine out of the West. And what we’re seeing right now on the border is all that playing out.

[music]
michael barbaro

We’ll be right back.

So Anton, the question right now is will President Putin actually carry out an invasion of Ukraine? And how should we be thinking about that?

anton troianovski

Well, it’s quite perilous, of course, to try to get inside Putin’s head, but here’s the case for invading now. Number one: NATO and the United States have made it clear that they are not going to come to Ukraine’s defense, because Ukraine is not a member of the NATO alliance, and NATO’s mutual defense pact only extends to full-fledged members. And of course, I think, politically, Putin believes that neither in the U.S., nor in Western Europe, is there the will to see soldiers from those countries die fighting for Ukraine.

michael barbaro

Right. And President Biden has just very publicly pulled the United States out of the war in Afghanistan and more or less communicated that unless American national security interests are at play, he will not be dispatching troops anywhere.

anton troianovski

Exactly. So Putin saw that, and he sees that potentially things could change. If the West does have more of a military presence in Ukraine in the future, let alone if Ukraine were to become a member of NATO at some point — it’s not going to happen in the next few years, but perhaps at some point — then attacking Ukraine becomes a much more costly proposition. So it’s a matter of war now could be less costly to Russia than war later.

michael barbaro

Right. The geopolitics of this moment may work in favor of him doing it in a way that it might not in a year or two or three.

anton troianovski

Absolutely. And then there’s a couple of other reasons. There’s the fact that if we look at everything Putin has said and written over the last year, he really seems convinced that the West is pulling Ukraine away from Russia against the will of much of the Ukrainian people. Polling doesn’t really bear that out, but Putin really seems to be convinced of that. And so it seems like he may also be thinking that Ukrainians would welcome Russian forces as liberators from some kind of Western occupation.

And then third, there’s the economy. The West has already threatened severe sanctions against Russia were it to go ahead with military action, but Russia has been essentially sanctions-proofing its economy since at least 2014, which is when it took control of Crimea and was hit by all these sanctions from the U.S. and from the E.U. So Russia’s economy is still tied to the West.

It imports a lot of stuff from the West. But in many key areas, whether it’s technology or energy extraction or agriculture, Russia is becoming more self-sufficient. And it is building ties to other parts of the world — like China, India, et cetera — that could allow it to diversify and have basically an economic base even if an invasion leads to a major crisis in its financial and economic relationship with the West.

michael barbaro

Right. So this is the argument that Putin can live with the costs of the world reacting very negatively to this invasion?

anton troianovski

Exactly.

michael barbaro

OK. And what are the reasons why an invasion of Ukraine might not happen? What would be the case against it, if you were Vladimir Putin?

anton troianovski

Well, I mean, I have to say, talking to analysts, especially here in Russia, people are very skeptical that Putin would go ahead with an invasion. They point out that he is a careful tactician and that he doesn’t like making moves that are irreversible or that could have unpredictable consequences.

So if we even look at the military action he’s taken recently, the annexation of Crimea, there wasn’t a single shot fired in that. That was a very quick special-forces-type operation. What we’re talking about here, an invasion of Ukraine, would be just a massive escalation from anything Putin has done so far. We are talking about the biggest land war in Europe since World War II, most likely. And it would have all kinds of unpredictable consequences.

There’s also the domestic situation to keep in mind. Putin does still have approval ratings above 60 percent, but things are a bit shaky here, especially with Covid. And some analysts say that Putin wouldn’t want to usher in the kind of domestic unpredictability that could start with a major war with young men coming back in body bags.

And then finally, looking at Putin’s strategy and everything that he’s said, for all we know, he doesn’t really want to annex Ukraine. He wants influence over Ukraine. And the way he thinks he can do that is through negotiations with the United States.

And that’s where the last key point here comes in, which is Putin’s real conviction that it’s the U.S. pulling the strings here and that he can accomplish his goals by getting President Biden to sit down with him and hammering out a deal about the structure of security in Eastern Europe.

So in that sense, this whole troop build-up might not be about an impending invasion at all. It might just be about coercive diplomacy, getting the U.S. to the table, and getting them to hammer out an agreement that would somehow pledge to keep Ukraine out of NATO and pledge to keep Western military infrastructure out of Ukraine and parts of the Black Sea.

michael barbaro

Well in that sense, Anton, Putin may be getting what he wants, right? Because as we speak, President Putin and President Biden have just wrapped up a very closely watched phone call about all of this. So is it possible that that call produces a breakthrough and perhaps a breakthrough that goes Putin’s way?

anton troianovski

Well, that’s very hard to imagine. And that’s really what makes this situation so volatile and so dangerous, which is that what Putin wants, the West and President Biden can’t really give.

michael barbaro

Why not?

anton troianovski

Well, for instance, pledging to keep Ukraine out of NATO would violate the Western concept that every country should have the right to decide for itself what its alliances are. President Biden obviously has spent years, going back to when he was vice president, really speaking in favor of Ukrainian sovereignty and self-determination and trying to help Ukraine take a more Western path. So Biden suddenly turning on all of that and giving Putin what he wants here is hard to imagine.

michael barbaro

Right, because that would create a very slippery slope when it comes to any country that Russia wants to have influence over. It would then know that the right playbook would be to mass troops on the border and wait for negotiation with the U.S. and hope that the U.S. would basically sell those countries out. That’s probably not something you’re saying that President Biden would willingly do.

anton troianovski

Right. And then, of course, the other question is, well, if Russia doesn’t get what it wants, if Putin doesn’t get what he wants, then what does he do?

michael barbaro

So Anton, it’s tempting to think that this could all be what you just described as a coercive diplomatic bluff by Putin to extract what he wants from President Biden and from the West. But it feels like history has taught us that Putin is willing to invade Ukraine. He did it in 2014.

History has also taught us that he’s obsessed with Ukraine, dating back to 1991 and the end of the Soviet Union. And it feels like one of the ultimate lessons of history is that we have to judge leaders based on their actions. And his actions right now are putting 175,000 troops near the border with Ukraine. And so shouldn’t we conclude that it very much looks like Putin might carry out this invasion?

anton troianovski

Yes, that’s right. And of course, there are steps that Putin could take that would be short of a full-fledged invasion that could still be really destabilizing and damaging. Here in Moscow, I’ve heard analysts speculate about maybe pinpoint airstrikes against the Ukrainian targets, or a limited invasion perhaps just specifically in that area where Russian-backed separatists are fighting.

But even such steps could have really grave consequences. And that’s why if you combine what we’re seeing on the ground in Russia, near the border, and what we’ve been hearing from President Putin and other officials here in Moscow, that all tells us that the stakes here are really high.

michael barbaro

Well, Anton, thank you very much. We appreciate your time.

anton troianovski

Thanks for having me.

michael barbaro

On Tuesday afternoon, both the White House and the Kremlin released details about the call between Putin and Biden. The White House said that Biden warned Putin of severe economic sanctions if Russia invaded Ukraine. The Kremlin said that Putin repeated his demands that Ukraine not be allowed to join NATO and that Western weapons systems not be placed inside Ukraine. But Putin made no promises to remove Russian forces from the border.

[music]

We’ll be right back.

Here’s what else you need to know today. On Tuesday night, top Democrats and Republicans said they had reached a deal to raise the country’s debt ceiling and avert the U.S. defaulting on its debt for the first time. The deal relies on a complicated one-time legislative maneuver that allows Democrats in the Senate to raise the debt ceiling without support from Republicans, since Republicans oppose raising the debt ceiling under President Biden. Without congressional action, the Treasury Department says it can no longer pay its bills after December 15.

Today’s episode was produced by Eric Krupke, Rachelle Bonja and Luke Vander Ploeg. It was edited by Michael Benoist, contains original music by Dan Powell and Marion Lozano, and was engineered by Chris Wood. Our theme music is by Jim Brunberg and Ben Landsverk of Wonderly.

That’s it for The Daily. I’m Michael Barbaro. See you tomorrow.

View Source

>>> Don’t Miss Today’s BEST Amazon Deals! <<<<

Silvio Berlusconi Angles for Italy’s Presidency, Bunga Bunga and All

ROME — Early this month, Silvio Berlusconi sat at a dining room table in his mansion with his girlfriend, more than a half-century younger, and an old political ally. As they feasted on a pumpkin souffle and truffle tagliatelle, the 85-year-old Italian former prime minister and billionaire made hours of phone calls, working his way down a list of disaffected lawmakers he hoped to persuade to elect him president of Italy next week.

“‘We are forming the Bunga Bunga party and we want you with us,’” Christian Romaniello, a lawmaker formerly with the anti-establishment Five Star Movement, recounted Mr. Berlusconi as saying, referring to the sex-fueled bacchanals that Mr. Berlusconi has deemed merely “elegant dinners.” According to Mr. Romaniello, Mr. Berlusconi then added, “‘But I’ll bring the ladies.’”

The Italian presidency, the country’s head of state, is a seven-year position usually filled by a figure of unimpeachable integrity and sobriety whose influence flows from moral authority. The current holder, Sergio Mattarella, is a quiet statesman whose brother was murdered by the mob. Another contender is Mario Draghi, the prime minister and a titan of European politics who has led the country to a period of unusual stability.

Then there is Mr. Berlusconi, who despite his recent bad health, waxen appearance and weakened political standing, is making an unabashed push to win a career-culminating position that he hopes will wash away decades of stains — his allies say unjustly thrown mud — and rewrite his legacy.

mob links and bribing lawmakers; the tax fraud conviction; the ban from office; the sentence to perform community service in a nursing home; his use of his media empire for political gain; his use of the government to protect his media empire; the wiretapped conversations of his libertine party guests regaling the Caligulan extent of his bunga bunga debaucheries; his close relationship with the Russian president, Vladimir V. Putin, who gifted Mr. Berlusconi a large bed; his appraisal of Barack Obama as “young, handsome and sun tanned”; his comparing a German lawmaker to a concentration camp guard; his second wife’s divorcing him for apparently dating an 18-year-old.

It’s an unorthodox résumé.

Mr. Berlusconi’s conflicts of interest, judicial problems and past behavior made him less than an excellent candidate, said Emma Bonino, a veteran Italian politician and civil rights activist who once ran for the office herself. “I don’t think he would give a good image of our country in the world,” she said.

Mr. Berlusconi declined to comment for this article. But he and his team of longtime advisers are selling him as a moderate, pro-European champion of democracy and can-do capitalism. “I think Silvio Berlusconi can be useful to the country,” Mr. Berlusconi, speaking of himself in the third person, said in October.

In usual fashion, he is using all the levers at his disposal to reach the requisite majority of 505 votes in the secret balloting for the presidency among lawmakers that starts on Monday.

read the headline) and published an insert on his qualities (“hero of liberty”). Weeks ago, lawmakers opening their mailboxes found a photograph of Mr. Berlusconi, arms up and bathing in adoration, on the cover of an anthology of his speeches.

the great-grandfather has remained the father figure of the center-right, which now has — if united — the largest bloc of lawmaker electors in Parliament and a strong desire to choose the next president.

But Mr. Berlusconi’s insistence has caused a major headache for Matteo Salvini, the leader of the nationalist League party, both at work and at home. Mr. Salvini’s girlfriend is the daughter of Denis Verdini, one of Mr. Berlusconi’s closest advisers, who is publicly applying pressure — from house arrest after his conviction in a bankruptcy fraud case — to elect Mr. Berlusconi.

After years of promising Mr. Berlusconi that he would back his candidacy for president, Mr. Salvini sent a stinging message to Mr. Berlusconi this week, saying that, “We must verify if Berlusconi has the numbers before the start of voting next week.” Mr. Salvini indicated that he had somebody else in mind.

Giorgia Meloni, the hard-right leader of Brothers of Italy, the third party in the center-right alliance, spoke on Tuesday of the possibility of Mr. Berlusconi’s stepping aside, prompting speculation that he might drop out.

the cover of Espresso magazine.

For all Mr. Berlusconi’s seeming unsuitability to fill the role of head of state, his allies argue that Italians elected him multiple times, that political considerations motivated the magistrates who hounded him for decades and that he was a self-made and brilliant businessman who built an empire.

But his outsize appetites and self-interested use of power fueled a backlash that seeded and grew the enormous anti-establishment Five Star Movement, co-founded by the comedian Beppe Grillo, who once derided Mr. Berlusconi as a “psychotic dwarf.”

Five Star took power in 2018 as Italy’s leading party, and Mr. Berlusconi’s support dwindled. He took a back seat to the rising nationalists, first Mr. Salvini and then Ms. Meloni, and railed against Five Star as incompetent good-for-nothings and a threat to democracy. He mocked their trademark universal welfare plan as a joke. He called their power structure communist.

Five Star has since imploded and scattered members into a mixed group of lawmakers desperate to avoid new elections that would almost certainly cost them their jobs and pensions. Mr. Berlusconi has explicitly promised to keep the legislature going as president, has called the universal income plan good for the poor and showered gifts on former rivals.

Luigi Di Maio, the Five Star leader who once refused to join any government with Mr. Berlusconi, this Christmas accepted a centuries-old oil painting of Venice from the mogul’s collection, according to a person close to Mr. Di Maio, who declined to comment.

As Mr. Berlusconi worked the phones alongside his girlfriend, who is also a member of Parliament in his political party, he sat next to Vittorio Sgarbi, one of his former ministers and a lawmaker and television personality who is well liked by many Five Star members.

When Mr. Sgarbi called Mr. Romaniello, the former Five Star lawmaker, who was interrupted while making Carnevale masks with his two small children, he jokingly introduced Mr. Berlusconi as “a Grillo-following friend.”

In an interview, Mr. Romaniello said that he was flattered by the call and added that friends contacted by Mr. Berlusconi also respected the former prime minister’s phone banking and “positive charisma.” But Mr. Romaniello said that he still considered himself, politically, “an adversary,” adding that Five Star had been born “as the antithesis of Berlusconi.” A phone call, he said, would not win his vote.

By Tuesday, even Mr. Sgarbi had bailed on Mr. Berlusconi and was urging him to be a kingmaker.

“I don’t think he can do it,” he said in an interview, saying that the duo had only persuaded about 15 lawmakers to back him, far short, even if he had a base of about 450 conservative supporters, to win the election. “It’s useless to try if you don’t have the numbers.”

On Wednesday, as Mr. Berlusconi’s lawyers in Milan successfully argued for a delay in a bribery trial related to his bunga bunga tribulations until after the presidential vote, his team snapped back and vowed that he would persist and, as always, speak for himself.

“I will not disappoint those who have trusted me,” Mr. Berlusconi said.

View Source

>>> Don’t Miss Today’s BEST Amazon Deals! <<<<

Fed’s Moves in 2022 Could End the Stock Market’s Pandemic Run

For two years, the stock market has been largely able to ignore the lived reality of Americans during the pandemic — the mounting coronavirus cases, the loss of lives and livelihoods, the lockdowns — because of underlying policies that kept it buoyant.

Investors can now say goodbye to all that.

Come 2022, the Federal Reserve is expected to raise interest rates to fight inflation, and government programs meant to stimulate the economy during the pandemic will have ended. Those policy changes will cause investors, businesses and consumers to behave differently, and their actions will eventually take some air out of the stock market, according to analysts.

“It’s going to be the first time in almost two years that the Fed’s incremental decisions might force investors or consumers to become a little more wary,” said David Schawel, the chief investment officer at Family Management Corporation, a wealth management firm in New York.

At year’s end, the overarching view on Wall Street is that 2022 will be a bumpier ride, if not quite a roller coaster. In a recent note, analysts at J.P. Morgan said that they expected inflation — currently at 6.8 percent — to “normalize” in coming months, and that the surge of the Omicron variant of the coronavirus was unlikely to lower economic growth.

16 percent gain during the first year of the pandemic. The index hit 70 new closing highs in 2021, second only to 1995, when there were 77, said Howard Silverblatt, an analyst at S&P Dow Jones Indices. Shares on Friday fell slightly.

The market continued to rise through political, social and economic tensions: On Jan. 7, the day after a pro-Trump mob stormed the U.S. Capitol, the S&P set another record. Millions of amateur investors, stuck at home during the pandemic, piled into the stock market, too, buying up shares of all kinds of companies — even those that no one expects will earn money, like the video game retailer GameStop.

Wall Street also remained bullish on business prospects in China despite Beijing’s growing tension with the United States and tightening grip on Chinese companies. Waves of coronavirus variants, from Delta to Omicron, and a global death toll that crossed five million did not deter the stock market’s rise; its recovery after each bout of panic was faster than the previous one.

“2021 was a terrific year for the equity markets,” said Anu Gaggar, the global investment strategist for Commonwealth Financial Network, in an emailed note. “Between federal stimulus keeping the economy going, easy monetary policy from the Fed keeping markets liquid and interest rates low, and the ongoing medical improvement leading to surprising growth, markets have been in the best of all possible worlds.”

400 private companies raised $142.5 billion in 2021. But investors had sold off many of the newly listed stocks on the New York Stock Exchange or Nasdaq by the end of the year. The Renaissance IPO exchange-traded fund, which tracks initial public offerings, is down about 9 percent for the year.

Shares of Oatly, which makes an oat-based alternative to dairy milk, soared 30 percent when the company went public in May but are now trading 60 percent lower than their opening-day closing price. The stock-trading start-up Robinhood and the dating app Bumble, two other big public debuts, were down about 50 percent for 2021.

supply chain disruptions stemming from the pandemic. Prices for used cars skyrocketed amid a global computer chip shortage. As Covid-19 vaccination rates improved, businesses trying to reopen had to raise wages to attract and retain employees. Consumer prices climbed 5.7 percent in November from a year earlier — the fastest pace since 1982.

But even when “inflation” had become a buzzword worthy of a headline in The Onion, the stock market appeared slow to react to price increases.

“The market is on the side that inflation is transitory,” said Harry Mamaysky, a professor at Columbia Business School. “If it’s not and the Fed needs to go in and raise interest rates to tame inflation, then things could get a lot worse in terms of markets and economic growth.”

And that is what the Fed has signaled it will do in 2022.

When interest rates go up, borrowing becomes more expensive for both consumers and companies. That can hurt profit margins for companies and make stocks less attractive to investors, while sapping consumer demand because people have less money to spend if their mortgage and other loan payments go up. Over time, that tends to deflate the stock market and reduce demand, which brings inflation back under control.

loss of purchasing power over time, meaning your dollar will not go as far tomorrow as it did today. It is typically expressed as the annual change in prices for everyday goods and services such as food, furniture, apparel, transportation costs and toys.

Mr. McBride said the values of many stocks were being supported by extremely low yields on Treasury bonds, especially the 10-year yield, which has held to about 1.5 percent.

“If that yield moves up, investors are going to re-evaluate how much they’re willing to pay for per dollar of earnings for stocks,” he said. Even if corporate profits — which were strong in 2021 — continue to grow in 2022, he added, they are unlikely to expand “at a pace that continues to justify the current price of stocks.”

quicken the pace of pulling back on that aid, set to finish in March.

“The nightmare scenario is: The Fed tightens and it doesn’t help,” said Aaron Brown, a former risk manager of AQR Capital Management who now manages his own money and teaches math at New York University’s Courant Institute of Mathematical Sciences. Mr. Brown said that if the Fed could not orchestrate a “soft landing” for the economy, things could start to get ugly — fast.

And then, he said, the Fed may have to take “very aggressive action like a rate hike to 15 percent, or wage and price controls, like we tried in the ’70s.”

By an equal measure, the Fed’s moves, even if they are moderate, could also cause a sell-off in stocks, corporate bonds and other riskier assets, if investors panic when they realize that the free money that drove their risk-taking to ever greater extremes over the past several years is definitely going away.

Sal Arnuk, a partner and co-founder of Themis Trading, said he expected 2022 to begin with something like “a hiccup.”

“China and Taiwan, Russia and Ukraine — if something happens there or if the Fed surprises everyone with the speed of the taper, there’s going to be some selling,” Mr. Arnuk said. “It could even start in Bitcoin, but then people are going to start selling their Apple, their Google.”

View Source

>>> Don’t Miss Today’s BEST Amazon Deals! <<<<

Riot Games to Pay $100 Million in Gender Discrimination Case

Riot Games, the video game maker behind popular titles like League of Legends and Valorant, said on Monday evening that it had agreed to pay $100 million to settle a gender discrimination suit with more than 2,000 current and former female employees.

The class-action lawsuit, which was filed in 2018, was originally on track for a $10 million settlement, but in early 2020 two California employment agencies took the unusual step of intervening to block the settlement, arguing that the women could be entitled to over $400 million. Separate of the lawsuit, the state had been investigating the company after claims of sexual harassment, discrimination, unequal pay and retaliation against women.

If the settlement is approved by the Los Angeles Superior Court, it will “send the message that all industries in California, including the gaming industry, must provide equal pay and workplaces free from discrimination and harassment,” Kevin Kish, the director of the California Department of Fair Employment and Housing, said in a statement.

Under the terms of the agreement, more than 1,000 full-time employees and 1,300 contractors dating back to November 2014 would split $80 million, with another $20 million going to lawyers’ fees and other costs. Riot also agreed to fund a diversity and inclusion program and consented to a three-year, third-party analysis of gender equity in employee pay and job assignments, as well as to an audit of workplace investigations.

Activision Blizzard — Riot has also contended with frequent accusations of harassment and a work environment that women described as sexist and toxic.

sued over claims he sexually harassed his former executive assistant. That case is still pending. A committee formed by the company’s board of directors later said it found no evidence of the claims against Mr. Laurent.

In an email to the company’s employees viewed by The New York Times, sent minutes before the settlement announcement, Mr. Laurent wrote that the timing “isn’t ideal” but the “final details of the agreement came together quickly.” He said he hoped the settlement “symbolizes a moment where we move forward as a united company.”

The proposed settlement on Monday was hailed as a win for women at Riot.

“I hope this case serves as an example for other studios and an inspiration for women in the industry at large,” one plaintiff, Jes Negron, said in a statement issued through a lawyer. “Women in gaming do not have to suffer inequity and harassment in silence — change is possible.”

View Source

>>> Don’t Miss Today’s BEST Amazon Deals! <<<<