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The coolest guy I've ever met

Blogs > Shady Sands
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Shady Sands
Profile Blog Joined June 2012
United States4021 Posts
Last Edited: 2012-11-02 10:04:24
November 02 2012 06:48 GMT
#1
K was an elderly gentleman who looked a bit like Gandalf, without the beard. I was a freshman looking for RA jobs and I came across an ad for to be an intern for a law professor. He was doing research in international finance and trade, so I decided to give it a shot.

The first time I met him, he was sitting in a blue oxford sweater and khakis, and flipping through an old-fashioned rolodex. He spoke, in a dry, slightly toned-down but unmistakeably transatlantic accent that made him sound like he was the headmaster in some New England prep school.

We spent the entire interview talking about politics, almost by accident. Later, he would tell me that he normally hated talking about that subject. I showed him my resume--under employment, the only thing there was some telemarketing for the Republican National Committee during the 2006 Congressional Elections--and he chuckled, mentioned that he was glad to see new blood coming into the GOP.

I replied that I wasn't a conservative, and he chuckled again, replying that "a man who is not a socialist at twenty has no heart; a man who is still a socialist at thirty has no head." Hoping to impress him, I smiled, nodded, and said, "Churchill, right?" He smiled back, shook his head, and replied, "nope, that's a mis-attribution--the quote comes from Clemenceau, who paraphrased Guisot."

I got the job. My first task for him was synchronizing his rolodex with his phone and email contacts. It was in alphabetical order. Nothing stood out to me until I got to the Bs. I flipped through a few of the entries until I got to one that read

G H W Bush, XXX-XXX-XXXX, Kennebunkport, Maine

I blinked twice. What the heck? I looked up for a moment and saw him jotting notes on some law student's paper. He caught me staring at him and I quickly looked down, a little embarrassed. He asked me what was the matter.

I didn't really know what to say, so I just held up the card and started to casually ask a very awkward question. He laughed, cut me off, and said that the landline wasn't very useful--that the best way to reach the former President was through his golf caddy's cell phone.



The next three months of work passed uneventfully. The only time he said something even remotely close to criticism was a comment that "none of [his] classmates ever wore shorts to see a professor." I stopped wearing them immediately thereafter.

Oh, and we never talked about politics while I worked for him, but it was sometimes difficult to avoid the subject.

When he and his wife left on vacation I got to take care of Gorky, his golden retriever. I remember showing up at the porch of his town house along "Professor's Row" and easing open the mahogany and stained-glass front door. His golden retriever immediately barked twice, and leapt towards me, knocking over a row of intricately arranged portraits on his mantelpiece. I spent thirty minutes putting them back up. At first, I didn't recognize the faces, except his own, much younger, staring back from an odd assortment of family vacation shots. The landmarks were familiar, though. Big Ben. The Eiffel Tower. The Brandenburg Gate. The Kremlin. The Forbidden City. Mt. Fuji.

Then I came across a set of photos, arranged in a long-ish frame like an old-fashioned Chinese picture scroll. In these, K was always dressed impeccably, sitting at long tables together with other well-dressed, well-groomed old men. It took me a moment to realize that the balding fellow with the age spot was Mikhail Gorbachev and the perpetually grinning gentleman across from him was Ronald Reagan. After carefully placing the long picture frame in its position of honor, front and center of all his other photos, I took Gorky out for her walk.



We lost touch for a month after I stopped working for him. I'd found an externship at an equity research firm, and they paid me twice what he did, as well as letting me wear shorts on the weekend. He was a little sad to see me go. After that, I started taking time out to see him.

Every two or three months, from that moment until now, we'd have lunch at this quiet little diner just up the street from where he lived. At first, we each ordered salads, but soon we were splitting pizzas like old friends. One time, he saw me holding a plastic bag with a book in it; it was Confessions of an Economic Hit Man, a birthday gift for my brother. He took the book and snorted one of his dry chuckles, and we began talking politics, for the first time in years.

He was a lot more forthright now. I don't remember how the conversation went, but I do remember vaguely that my mind was completely blown after about fifteen minutes. Lunch lasted nearly an hour and a half for us that day.

This is what he said:

1) The entirety of the United States was built into a machine to defeat the Soviet Union by the 1970s. The entire strategy was not to attack them militarily, but to utilize economics and diplomacy to bankrupt them. In order to do that, it was necessary to build up a constellation of US allies whose export economies rested on US aggregate demand and whose politicians could be quickly removed with scandalous dirt held by US agencies. In finance, the US switched off gold in 73 and created an eurodollar futures market in 74, and then used that as well as minor tinkering such as the Plaza Accords in 87 to accomplish the goal of letting other countries export as much as they wanted to it; in diplomacy, NATO kept Western Europe far happier than the Warsaw Pact did to Eastern Europe. Oh, and the Presidency became much more powerful than originally envisioned, mainly because all this new "thinking and doing" ran through national security officials rather than legislators.

2) The US never changed the "machine" after the Cold War ended, because those institutions became essentially rent-seeking entities; trade built on well-educated but cheap post-Communist labor created an enormous amount of wealth, which went into deregulated finance, turning it into a casino; the media and military found Islamism to be a great way to justify viewership and defense budgets; the executive branch was able to tap into all these forces quite well to enhance its power at the expense of Congress.

3) This machine won't end, absent a tremendous crisis that provided a new "cause" for the country to orient itself around.

His final quote tied it all together: "The Soviets kept us focused, but there's nothing like them now."

This wasn't the wham line that really stuck with me, though. Near the end of lunch, I was talking about petty politics in the undergraduate finance club, and he said something that I still try to live by today:

"You're trying too hard to be someone important. You almost remind me of Dick Nixon."



Nowadays, he's gone back to playing senior statesman whenever the current administration needs someone to do backchannel negotiations, and the number one counterparty in these talks is China. So ironically, even though we probably have even more to talk about, we have less we can say to each other.

We've gone back to salads, and he had to put Gorky down a few weeks ago. But he's still the most interesting guy I've ever met.

****
Что?
GhoSt[shield]
Profile Blog Joined April 2010
Canada2131 Posts
November 02 2012 07:19 GMT
#2
This dude sounds like he has been a part of history and has really penetrating insights from his expereince. Thanks for sharing, amazing story and person.
pigtheman
Profile Joined January 2009
United States333 Posts
November 02 2012 07:29 GMT
#3
That must be such a privilege to work for him O.O
5 stars man, brilliant story
*rawr* d(^_^d)
rangi
Profile Blog Joined August 2010
New Zealand24 Posts
November 02 2012 07:39 GMT
#4
You're the most interesting guy I've ever met read. + Show Spoiler +
in Teamliquid
This too shall pass
Leeoku
Profile Joined May 2010
1617 Posts
November 02 2012 07:44 GMT
#5
I hope I find a job with a boss like that
JieXian
Profile Blog Joined August 2008
Malaysia4677 Posts
Last Edited: 2012-11-02 08:06:27
November 02 2012 08:05 GMT
#6
In finance, the US switched off gold in 73 and created an eurodollar futures market in 74, and then used that as well as minor tinkering such as the Plaza Accords in 87 to accomplish the goal of letting other countries export as much as they wanted to it; i


I didn't understand what he said. Could you please elaborate?

And what are backchannel negotiations? Like blackmailing, taunting, provoking?
Please send me a PM of any song you like that I most probably never heard of! I am looking for people to chat about writing and producing music | https://www.youtube.com/watch?v=noD-bsOcxuU |
Aerisky
Profile Blog Joined May 2012
United States12129 Posts
November 02 2012 08:08 GMT
#7
Wow, what a read...just amazing stuff.

Thanks for sharing this with us.
Jim while Johnny had had had had had had had; had had had had the better effect on the teacher.
Shady Sands
Profile Blog Joined June 2012
United States4021 Posts
November 02 2012 08:18 GMT
#8
On November 02 2012 17:05 JieXian wrote:
Show nested quote +
In finance, the US switched off gold in 73 and created an eurodollar futures market in 74, and then used that as well as minor tinkering such as the Plaza Accords in 87 to accomplish the goal of letting other countries export as much as they wanted to it; i


I didn't understand what he said. Could you please elaborate?

And what are backchannel negotiations? Like blackmailing, taunting, provoking?

Basically the US had a balance of payments problem so long as it was on the gold standard. If the US was to keep serving as the "importer of last resort" for W Germany, Japan, and S Korea then it would have to solve the balance of payments problem by going paper. But historically, pure paper currencies have been prone to hyperinflation. The solution was that the US went off gold and also used futures to reduce the volatility (read: long-tail hyperinflation risk) of a fiat currency. Then Volcker went and nuked any residual inflationary expectations for good by jacking interest rates up to double digit percentages.

This allowed the US to use its own industrial base to make loads of high-tech weapons (thousands of M1 Abrams tanks, Apache helicopters, F-15 and 16 jets, MX missiles, a 600-ship navy) through the 80s, while its allies exported the consumer goods necessary to keep the US people happy, and the expanded financial market served as an outlet for the excess liquidity, allowing America to drastically delay its financial reckoning.

The Soviets couldn't keep up with this and their economy simply gave out.
Что?
Adersick
Profile Joined July 2011
United States216 Posts
November 02 2012 08:18 GMT
#9
Man, so much knowledge from one man, he is indeed one cool individual. I'm an engineer, and generally stay out of politics, so to me all of this is mind-boggling.

Thanks a ton for sharing!
Shady Sands
Profile Blog Joined June 2012
United States4021 Posts
Last Edited: 2012-11-02 08:23:45
November 02 2012 08:22 GMT
#10
The overarching strategy (be at peace with the Soviets but simply spend them to death) was designed by Nixon back in the 70s. According to K, Nixon was probably the smartest President, but also probably the most psychologically troubled President.

The specifics were implemented slowly by a series of successive administrations--Kissinger, Brzezinski, George Schultz, Cap Weinberger, Greenspan, and Jim Baker, were all folks that worked on tinkering the plan
Что?
Shady Sands
Profile Blog Joined June 2012
United States4021 Posts
November 02 2012 08:25 GMT
#11
As for backchannel negotiations, its like most state-to-state negotiations, but without much ideology involved. There's some learning involved

to quote K

"Western nations haven't had to conduct foreign policy on a purely non-ideological basis since the end of the First World War"
Что?
Shady Sands
Profile Blog Joined June 2012
United States4021 Posts
Last Edited: 2012-11-02 08:30:21
November 02 2012 08:29 GMT
#12
Another pair of quotes from my notes (protip: always take notes when you lunch with people)

"1914 was the apex of Western Civilization; everything since then has been a downhill slide in terms of the West slowing down and other nations catching up"

and

"World War One was a demonstration that the very same cultural traits that made the West great--rationalist monotheism, national sovereignty, an absolute emphasis on law, treating the ends of warfare as an extension of politics and the means of warfare as an extension of science--were double-edged swords that would make the great Western nations cannibalize each other"
Что?
Ahzz
Profile Joined May 2007
Finland780 Posts
November 02 2012 08:49 GMT
#13
These sorts of individuals are hard to come by... They just seem to know everything.
TheKwas
Profile Blog Joined January 2011
Iceland372 Posts
November 02 2012 09:33 GMT
#14
We lost touch after I stopped working for him. I'd found an externship at an equity research firm, and they paid me twice what he did, as well as letting me wear shorts on the weekend. He was a little sad to see me go, but we still kept in touch.

Might want to edit this.
FrodaN
Profile Blog Joined October 2010
754 Posts
November 02 2012 09:55 GMT
#15
Holy shit awesome read!
Shady Sands
Profile Blog Joined June 2012
United States4021 Posts
November 02 2012 10:03 GMT
#16
On November 02 2012 18:33 TheKwas wrote:
Show nested quote +
We lost touch after I stopped working for him. I'd found an externship at an equity research firm, and they paid me twice what he did, as well as letting me wear shorts on the weekend. He was a little sad to see me go, but we still kept in touch.

Might want to edit this.


Ah, I meant we lost touch for a while. We started lunching together a month or two later. I'll put that in, thanks!
Что?
Xiahou
Profile Blog Joined June 2011
Singapore80 Posts
November 02 2012 10:08 GMT
#17
Between lunching with eminent statesmen/scholars and courting daughters of prosperous Chinese bankers, where do you find time for Starcraft?
VenomBRA
Profile Joined September 2010
Netherlands168 Posts
November 02 2012 10:56 GMT
#18
Did you ever find out if he's a Skull and Bones member?
"We got a lot of nothing to say"
Shady Sands
Profile Blog Joined June 2012
United States4021 Posts
November 02 2012 11:15 GMT
#19
On November 02 2012 19:56 VenomBRA wrote:
Did you ever find out if he's a Skull and Bones member?

No, but he's a member of the Council on Foreign Relations and was a member of the Aspen Strategy Group.
Что?
NB
Profile Blog Joined February 2010
Netherlands12045 Posts
November 02 2012 12:33 GMT
#20
Last part was such an interesting read because the point of view was so narrowly focused on the American system throughout WW2 and entering cold war. In a way, criticizing the system, but with a hidden endorsement. Such point of view to me should not be treated accurately but as a taste for romance with mixed feelings, leads to understand the person who generated such thoughts instead of the thoughts itself.
Im daed. Follow me @TL_NB
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