BuzzFeed News on the Dominican Republic, the US, and Citizenship

BuzzFeed reporter Emily Tamkin interviewed Michele Wucker and quoted her in Trump Wants To Cancel Birthright Citizenship. The US Has Already Helped One Country Do That, a November 12, 2018 article about the Dominican Republic’s stripping of citizenship to Dominicans of Haitian descent.

Donald Trump’s plan to end birthright citizenship by executive order was immediately denounced by legal scholars as an illegal intrusion on the Constitution’s 14th Amendment. But the United States knows something about ending birthright citizenship because it played an active role in helping another country bring it to a close — the Dominican Republic.

That role, which was unfolding before Trump became president, has long been the subject of criticism — from the Organization of American States, the Inter-American Commission on Human Rights, and former Peace Corps volunteers who served in Haiti, which shares the island of Hispaniola with the Dominican Republic. Trump’s criticism of birthright citizenship and call for a wall on the US–Mexico border have renewed concerns that the US is inflaming the Dominican Republic’s already hostile xenophobic attitudes toward its Haitian minority.

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“US human rights organizations were very vocal against the court ruling in 2013, and were very vocal in documenting some of the problems, particularly as it came into force in 2015,” Michele Wucker, author of Why the Cocks Fight: Dominicans, Haitians, and the Struggle for Hispaniola, said.

Read the whole article on Buzzfeed.

The Gray Rhino on FT Alphachat

I enjoyed talking with the FT’s Matt Klein about why we don’t deal with problems we see in advance – and how to fix it- on the January 18, 2018 edition of FT Alphachat, the conversational podcast about business and economics produced by the Financial Times in New York. Each week, FT hosts and guests delve into a new theme, with more wonkiness, humour and irreverence than you’ll find anywhere else.

LISTEN HERE.

The Gray Rhino Goes Global

The gray rhino has continued its charge around the globe, with a front page, above the fold article in The New York Times July 23, 2017: “Let the West worry about so-called black swans, rare and unexpected events that can upset financial markets. China is more concerned about “gray rhinos” — large and visible problems in the economy that are ignored until they start moving fast.”

Here’s a roundup of some recent media coverage of China’s effort to crack down on its financial gray rhinos, including liquidity and credit risks, shadow banking, abnormal capital market fluctuations and real estate bubbles:

China ignores the ‘grey rhino’ threats to its economy at its own peril Andrew Sheng, South China Morning Post, July 21, 2017

From black swans to gray rhinos, Andrew Sheng, The Star (Malaysia), July 22, 2017

In China, Herd of ‘Gray Rhinos’ Threatens Economy  Keith Bradsher and Sui-yee Lee, The New York Times, July 23, 2017

Beware the ‘grey rhinos’ of economic risk or ‘prepare for pain’, analyst warns China Sidney Leng, South China Morning Post, July 23, 2017

Watch out for ‘grey rhino’ in jungle of financial risksChina Daily, Jul 24, 2017

The $180 million conflict that kept Scaramucci out of the White House in January has only gotten shadier Linette Lopez, Business Insider, July 24, 2017

Wanda Swears Off Overseas Deals after Xi Exchange, Greg Isaacson, Mingtiandi, July 25, 2017

China’s Communist Leaders Focus on ‘Grey Rhino’ Private-Sector Risks Alex Frew McMillan, MarketWatch, July 26, 2017

Hunting rhinos: What Dalian Wanda saga says about China  Karishma Vaswani, BBC News, July 26, 2017

Interview: Environment, resource constraints biggest “gray rhinos” in China: author
Xinhua, July 27, 2017

CINA. I tre rinoceronti grigi di Pechino. Graziella Giangiulio, Stampa (Italy), July 27, 2017

China to crack down on ‘gray rhino’ risks Li Xuanmin, The Global Times, July 30, 2017

Los cuatro ‘rinocerontes grises’ que amenazan con embestir al mercado Victor Blanco Moro, El Economista (Spain)  July 30, 2017.

Chinese Government Concerned about ‘Gray Rhino’ [VIDEO] World Insight with Tian Wei, CGTN, August 3, 2017

China Steps Up Warnings Over Debt-Fueled Overseas Acquisitions By Sui-Lee We. The New York Times. August 18, 2017

 

The Gray Rhino Rattles Chinese Stocks

In front-page commentary published July 17th, 2017, People’s Daily, the official newspaper of China’s Communist Party, warned of the need to avert highly obvious “gray rhino” risks as well as rare and unpredictable “black swans.” The commentary rocked China’s stock markets and signaled a new policy direction intended to more aggressively address obvious financial risks.

The article said that China should “strictly prevent risks from liquidity, credit, shadow banking and abnormal capital market fluctuations, as well as insurance market and property bubbles.”

Taking the commentary as a sign that regulators would crack down on speculation, investors immediately dumped small-cap stocks, seen as more likely to carry debt that could become unmanageable. “China’s small-cap Shenzhen index plunged 4.3% on Monday. The ChiNext, which focuses on high-tech companies, plummeted 5.1% and closed at its lowest point since early 2015,” noted CNN Money.

The timing of the People’s Daily article was particularly telling, immediately following last week’s National Financial Work Conference, a key policy strategy session that occurs every five years. This year the conference created a “super-regulator,” intended to improve the country’s ability to tackle a financial crisis, that merged four existing supervisory watchdog. It also strengthened the central bank’s powers.

A few hours after the People’s Daily article appeared, new data showed the Chinese economy re-accelerating.

The Chinese government’s embrace of the gray rhino language generated widespread media coverage.

“The unusual zoological turn of phrase in the Party’s language could… hint at a genuine effort to re-energize its long-drawn-out regulatory clampdown,” Sunny Oh wrote for Marketwatch.

Similarly, ZeroHedge noted, “[I]n a surprising case of forward-looking prudence, the Chinese government is doing what numerous Fed members have also done in recent weeks, by setting a surprisingly wary tone about risk, demonstrated best by the front page commentary in the People’s Daily.”

Former Dallas Fed chief Richard Fisher referred to gray rhino risks on Squawk on the Street Monday.

Here’s some other notable coverage:

What’s a ‘gray rhino’ and Why Did It Cause Chinese Stocks to Drop? CNN Money, July 17, 2017
       ¿Por qué un ‘rinoceronte gris’ causó la caída de las acciones en China?
        ‘Tê giác xám’ ?ang ?e d?a th? tr??ng Trung Qu?c VNExpress (Vietnam)
        Piyasan?n yeni korkusu: Gri gergedan BusinessHT (Turkey)

China’s Economy Charges On as Officials Target the Risk ‘Rhino’ Bloomberg News, July 17, 2017
       China economy charges on as leaders target the risk `Rhino’ The Peninsula (Qatar), July 18, 2017

Why China Fears “Gray Rhino” Risk to Fragile Financial System Marketwatch, July 17, 2017

When a ‘Black Swan’ Will No Longer Do ZeroHedge, July 17, 2017

Xi’s Risk-off Push Ripples Through China as Transition Nears Bloomberg News, July 18, 2017

China Sentences to Ponder, Gray Rhino Edition Marginal Revolution, July 18, 2017

Beijing Watches Out for “Grey Rhino” and “Black Swan” in Jungle of Financial Risks South China Morning Post, July 19, 2017

People’s Daily Reference to the Gray Rhino -What Is It? jrj.com (Chinese Simplified Characters), July 19, 2017

China Ignores Gray Rhino Threats to its Economy at its Own Peril Andrew Sheng, South China Morning Post, July 21, 2017

Keeping Financial Risks at Bay, China Daily, July 20, 2017

Gray Rhinos, Game of Thrones, and TV’s Golden Age People & Profit, France24, July 21, 2017

 

BusinessWorld Review: Stay Alert, Act In Time

Elton Sayward reviews THE GRAY RHINO in the December 26, 2016 issue of BusinessWorld, calling it “a must read for the C-Level suite, start-ups and anyone that has been trampled by a gray rhino.”

He applies the framework to his own memories in military situations: “As a US Naval Officer, I saw this first hand on the bridge of ships as officers would delay making a course correction in an obvious close crossing situation with another ship. Officers would have the data at hand from 2-3 different radar sources as well as visually from lookouts, but hesitated to make the call to the Captain to recommend a course change. The fear of looking foolish, making a wrong recommendation, not having the correct information would all play on the officer’s better judgment to take action. This invariably would end up with the officer looking reckless and the Captain coming to the bridge and making the needed course changes in a more complex and urgent situation.”

READ THE FULL REVIEW HERE.

The Gray Rhino on The Exchange

I sat down with Reuters Breakingviews US Editor Jeffrey Goldfarb for a conversation on The Exchange about why it’s more important to look for gray rhinos than black swans and how to keep from getting trampled. The interview aired June 23, 2016. Click the image below to view the video.

With Reuters Breakingviews US Editor Jeffrey Goldfarb on The Exchange
With Reuters Breakingviews US Editor Jeffrey Goldfarb on The Exchange