SHORT NOTES ON MIXED GOVERNMENT AND CHECKS & BALANCES

AM | @agumack

"Checks and balances are our only security" — John Adams

[1] Elois Riklin on James Harrington. I just received Elois Riklin's Die Republik von James Harrington, in a handsome 1999 edition by Stämpfli Verlgag in Bern. The book does not feature in the bibliography of Rachel Hammersley's (@RHammersley99) excellent James Harrington. An Intellectual Biography (Oxford University Press, 2019). I plan to read several books by Dr. Riklin this year, including Machtteilung: Geschichte der Mischverfassung (Darmstadt: Wiss. Buchgesellschaft, 2006) and his volume on Ambrogio Lorenzetti ("On Alois Riklin and Checks & Balances", Contrapesos, November 2021; posts on Lorenzetti in Contrapesos). From the little I have read so far, Prof. Riklin suggests treating the notions of mixed government and the separation of powers as zwillingspaar (pair of twins), rather than as sharply separated concepts. 

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[2] Soft balancing. Microsoft informs about "destructive malware in systems belonging to several Ukraine government agencies" [see]. In 2005, International Security devoted an issue to the notion of soft balancing, with articles by Robert Pape, T. V. Paul and Stephen Brooks: "Although soft balancing relies on nonmilitary tools, it aims to have a real, if indirect, effect on the military prospects of a superior state. Mechanisms of soft balancing include territorial denial, entangling diplomacy, economic strengthening, and signaling of resolve to participate in a balancing coalition" (*). Quite obvioulsy, one should add cyberattacks to the list now.

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[3] El Salvador & Bitcoin trading. Moody's is raising concerns about El Salvador's bitcoin trading. “If El Salvador’s Bitcoin holdings get much higher, then that represents an even greater risk to repayment capacity and the fiscal profile of the issuer” [see]. One particular reason of concern is an $800 million bond that will mature in January of next year. The bond is rated Caa1. I would add that President Bukele constantly checking the price of bitcoin, instead of properly running the executive power, is an additional source of risk. The president says he makes the trades himself over the phone on behalf of the country. The yield on El Savador's bond is 35%. Checks and balances and the cost of capital, anyone?

(*) International Security, Vol. 30, issue 1, 2005. With contributions from Robert Pape ("Soft Balancing against the United States"), T. V. Paul (“Soft Balancing in the Age of US Primacy” and Stephen Brooks (“Hard Times for Soft Balancing").

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