Sunday, November 8, 2026

My Review of Edward Kritzler's "Jewish Pirates of the Caribbean"

Swashbuckling Jews on the High Seas

 

The late journalist and amateur historian Edward Kritzler has spun a yarn of how a group nominally Christian Sephardi Jews (Conversos) were placed at the core of New World trade and became feared pirates on the Spanish Main. To be sure they were seeking monetary gain and religious freedom; they also sought revenge against Spain for the crime of the Inquisition.

 

The story begins with exile of Jews from Spain in 1492. Most went to the Ottoman Empire in the east and Morocco, but more than a few ended up in the Western Hemisphere. Indeed, the Jews of Spain and Portugal were not only traders, but they were also navigators. A case in point was Vasco da Gama’s navigator on his great voyages. The Jews established themselves in Mexico, Bolivia, Peru, and the West Indies. However, as the long arm of the Inquisition reached into the heart of Latin America, many Jews fled to the West Indies and to the Dutch colony of Recife in Brazil.

 

Once in the West Indies the Jews became pirates but were really privateers in the service of The Netherlands and England. In case of the Dutch, they were in the service of the quasi-governmental Dutch West India Company. The goal of the British and the Dutch was to break the Spanish monopoly on trade to Latin America. Because all trade had to go through the Caribbean, it became a great hunting ground for roving fleets of pirate ships.

 

The most famous Jewish pirate was Rabbi Samuel Pallache who pillaged Spanish shipping for many years. He would go on to be one of the founders of the new Jewish community in Amsterdam. Amsterdam offered high degree of tolerance for the Jewish community and many of its members grew rich from piracy and legitimate trade. Because of their primacy in trade, when Olver Cromwell seized control of Britain, he allowed Jews to return his country. Indeed, the Jews of the Caribbean were instrumental in Britain seizing control of the island of Jamaica. There we see the Jewish pirates working hand-in-glove with the most famous pirate of the era, Henry Morgan.

 

Kritzler offers up other vignettes as well. For example, Christopher Columbus was very friendly with the Converso Jews and was given Jamaica by the Spanish king for his exploratory efforts. As a consequence, under both Spanish and British rule Jamaica offered a safe haven. Another safe haven was the island of Nevis where Alexander Hamilton was born. And it was the Jewish traders of the Dutch colony of Recife who had to flee after the Portuguese retook its colony that ended up to being the first Jews in New Amsterdam.

 

Although Kritzler was not an academic and his history has some issues, he brought to life the role of a rogue Jewish community that opened up the Western Hemisphere to global commerce that helped bring on the mercantile revolution 

Wednesday, November 4, 2026

2026: The Humiliation of Donald Trump

 The Republican Party suffered its worst midterm defeat since 1958, worse than that of the 1974 Watergate debacle. As of this morning the Democrats are on track to win between 35-40 House seats and 7-9 in the Senate. In the 1974 Watergate year the Democrats picked up 49 House seats and 4 in the Senate; in response to the 1957-58 recession the Democrats picked up 49 House seats and an astounding 15 seats in the Senate. Make no mistake, this humiliating defeat of the Republican Party lies at the feet of Donald Trump. For example, his preferred candidates in hitherto Republican Texas and South Carolina went down to defeat.

 

The Democrats did far better than I thought they would only a few days where I had them winning at net of 3 Senate seats and 20-25 House Seats. ( Shulmaven: 2026 Elections: The Democrats Strike Back ) I had them picking up 3-4 governorships while it now looks like they will pick up at least 5, including Georgia and Texas. However, I noted that redistricting in a wave election can backfire, which it did last night with the following comment: “I would also point out that in wave elections partisan redistricting actually hurts rather than help.”

 

The Democratic tide brought with it the twin bacilli of antisemitism and socialism. With Senate candidates like El-Sayed of Michigan and Maine’s Jackson along with more than a few House winners we will soon find out whether the Democratic Party’s immune system is strong enough to ward off this incipient infection.

 

Going forward Capitol Hill will be a far different place. It is likely that we will be soon witnessing “show trials” investigating the corruption of Trump’s family, former cabinet officials, Elon Musk, and a host of “Tech Bros,” and other corporate officials who cozied up to the administration. This may be fun to watch, but my guess is that it could very well be a distraction from the policy changes that lie ahead.

 

On the policy front look for attacks on pharmacy benefit managers, crypto, data centers (especially from the new Governors of Texas and Ohio), and for restrictions on Trump’s tariff powers. The Democrats will push for ending the Medicaid work requirements and for restoring the Obama Care subsidies. The Democrats will also push to restore the subsidies to alternative energy. Further, there will be an attempt to reduce out-year defense spending. Given the tension over the budget, a government shutdown is likely especially over the debt ceiling vote that comes up in July.

 

Because both the Republican and the Democrats have had no interest in deficit reduction for over a decade, the path of least resistance between Trump’s veto pen and the Democratic policy changes would be to increase the deficit. That may work for a while, but while neither party may be interested in the deficit, the deficit will soon be interested in them. (e.g., France)

Sunday, November 1, 2026

2026 Elections: The Democrats Strike Back

In our 2026 outlook piece last December we wrote:

“The Democrats will seize control of the House gaining anywhere between 15-40 seats and could very well take the Senate. Just to note the last time one party controlled all three branches of government was 2003-2006 inclusive and before that it was 1977-1980 inclusive. Americans like divided government. I would also point out that in wave elections partisan redistricting actually hurts rather than help.” (See: Shulmaven: 2026: A Year of Turbulence )

Aside from America’s preference for divided government, the fundamentals look very good for the Democrats and horrible for the Republicans. In off-year elections, especially the 6th year of a presidency (albeit interrupted), the incumbent party does poorly. President Trump’s popularity is in the toilet, the Iran War is unpopular, although the rate of inflation is down from its 2022 peak, prices remain high especially for gasoline and diesel, and there is a stench of corruption hanging over the White House. Thus, the only question that remains is the extent of the Democratic victory.

 

In the House of Representatives my best guess is that the Democrats will pick up between 20-25 seats thereby gaining a clear majority with 235-240 seats. It could be more, but it is not clear to me that the electorate wants a tsunami that would lead to a 40-seat gain. As we noted above, the fate of the Senate is trickier where candidate quality, campaign spending, and historical voting patterns tend to predominate.

 

By the time it is over, which might take a week, the Senate could very well end up in a tie, with the Democrats picking up a net of three seats yielding a 50-50 Senate with Vice President JD Vance casting the tie breaking vote. The Democrats will win North Carolina with Cooper, Ohio with Brown, Texas with Talarico, and Kansas with Hamilton. The Democrats will lose Michigan with Rogers beating El-Sayed. Republicans Collins of Maine and Sullivan of Alaska will successfully resist the Democratic tide. 

If I am underestimating the Democratic gains by one seat, then with a 51-49 Senate, Pennsylvania’s John Fetterman would become the new Joe Manchin who might actually switch parties. I would note that several of these races look really close that would make it possible for the Republicans to end up with 52 seats or the Democrats with 54 seats.

I haven’t followed the governors’ races that closely, but it looks like the Democrats will pick up a net of three or four governorships. Those gains, especially in Ohio and Iowa, will of be of great importance in 2028. Because I am already on the record on X, I have Abbott in Texas being re-elected.

 

Out of the Republican carnage I believe the national press will soon take note of Saritha Komatireddy, the Republican candidate for Attorney General in New York. She will give incumbent Democrat Letitia James a run for her money.


Tuesday, October 27, 2026

Initial Take on the Israeli Elections: Is A unity Government Possible?

According to the latest exit polls (but nowhere near final results) the Gadi Eisenkot-led opposition has 52 seats, the Netanyahu government has 50 seats and the Arab parties ae doing better than expected with 18 seats. The Israeli electorate has rejected Netanyahu, but, at the moment, there is no viable alternative for the needed 61 seat majority. Arab parties have served in the government once before, but it is not likely this time.

Thus, the alternative to a new election is some form of unity government or a grand coalition that would exclude both the Arab parties and the far right. This would include either a breakaway from Eisenkot's coalition to join Netanyahu, or Netanyahu's Likud Party joining the opposition in in a truly grand coalition. Both options would be difficult given the egos of all of the principal players; never under-estimate ego in Israeli politics.

However, this time there might be no alternative. A deal might include Netanyahu retiring and getting a "get out of jail free card" or with Netanyahu remaining in some kind of power sharing deal with Eisenkot where there the Haredim (religious parties) would receive a dramatic cut in their subsidies and subject some of their youth to the draft in exchange for holding off on an October 7th Investigation Commission. I know all of this is hard to visualize today, but stranger things have happened. 

Monday, October 26, 2026

My Review of Robin Wigglesworth's "A Fabulous Debt: How Bonds Built the Modern World

 A Paean to Debt


Less than a month after the release of Financial Times editor Robin Wigglesworth’s paean to the heroic role debt has played in the building of the modern world, France has become consumed by a debt crisis. Only in the very last chapter does Wigglesworth discuss the risk of governmental over-indebtedness, otherwise governmental debt is a “blessing” in the words of Alexander Hamilton. For example, he ignores the Argentine debt crisis of 1890, the interwar debts arising out of World War I, the collapse of Latin American bonds in the 1930’s and again in the 1980’s. 

 

Nevertheless, Wigglesworth has written a lively history of the bond market from the Venice of the middle-ages, to Amsterdam, to London and then on to the United States. He rightly attributes a good part of England’s victory over Napoleon to its ability to issue a perpetual bond called CONSOLS that enabled it to fund Wellington’s army and to subsidize Prussia.

 

When his history moves to the United States, we are in the room with Hamilton consolidating the America’s Revolutionary War debt in 1791 which a decade later enabled the Louisiana Purchase. I did not know that bankers from Baring Brothers and Hope & Co. assisted Special Envoy James Monroe in his negotiations over Louisiana with Napoleon. The result was an $11.5 million bond issues with Barings on the right and Hope & Co of Amsterdam on the left. In many real estate classes that I have taught the Louisiana Purchase was the first cross-border real-estate transaction with due diligence taking place after the signing of the deal. As a side note Lewis and Clark’s expedition did the due diligence.

 

He discusses the role of Jay Cooke in financing the Civil War and his subsequent but and goes on to discuss the role of Treasury Secretary William Gibbs McAdoo in his selling liberty bonds to fund World War I. That effort introduced the American public to the securities market that enabled the 1920’s to roar.

 

 

As he moved into the modern era, we witness the role of Michael Milken in establishing the high yield market that enabled companies hitherto frozen out of the bond market to fund their efforts and to be utilized in financing hostile takeovers. Wigglesworth highlights the role of my old firm Salomon Brothers and Lou Ranieri in particular in creating a vast securitization market for mortgages and other assets. The 1980’s see the flowering of the futures markets for interest rates and currencies along with giant swaps market that has the ability to convert fixed rate debt to floating and vice versa, for example. His character portraits of both Milken and Ranieri are both vivid and accurate.

 

To be sure he discusses the Long-Term Capital Management blowup in 1998 and the financial crisis of 2007-09. In both cases the plumbing of the repo market became crucial in exacerbating the situation and in the case of the financial crisis securitization run wild accompanied by corruption in the ratings agencies led to a near complete meltdown.  The aftereffects of the financial crisis led to a long period of financial repression caused by quantitative easing that was further exacerbated by the COVID epidemic of 2020 which brough the yield on the 10-year U.S. Treasury Bond to an all-time low of 0.56% in August of that year. As I have noted before that marked the end of the bull market in bonds that began in 1981. (See: https://shulmaven.blogspot.com/2025/01/we-are-in-early-stages-of-bond-bear.html )

 

“A Fabulous Debt” is an easy and enjoyable read. His character sketches of such personages as Nathan Rothschild, SG. Warburg and Jay Cooke are a joy to read. I only wish that he tempered his enthusiasm for debt. To be sure it helped bring on the modern world, but as France and soon other are about to learn, the piper must be paid.

Friday, October 23, 2026

Trump/Musk Perfidy in Ukraine

This week President Donald Trump and SpaceX CEO Elon Musk downgraded the StarLink/StarShield  systems in Ukraine. As a result, Ukraine was unable to defend itself against Russian jet powered drones and ballistics missiles and was severely limited in making long distance drone strikes into Russia. The perfidy of Trump and Musk caused the deaths of hundreds of Ukrainians and it is making Kyiv even more unlivable.

Adding insult to injury Trump is going forward with a Putin/Xi summit to discuss Ukraine among other things without presence of Ukrainian President Zelensky. This move is reminiscent of the Munich Conference of 1938 where Britain, France and Italy sold out Czechoslovakia to Hitler. It also could be a prelude to the spheres of influence outlined in Trump's National Security Strategy last December which strongly hinted of Yalta. (See: https://shulmaven.blogspot.com/2025/12/some-thoughts-on-trumps-national.html )

Where a few months ago it looked like Ukraine was on the offensive, the Trump/Musk actions represent a huge setback. (See: https://shulmaven.blogspot.com/2026/07/ukraine-goes-on-offensive.html ) Further, the StarShield cutoff has taken place against the backdrop of Russian attacks on Bulgarian and Romanian shipping in the Black Sea thereby widening the conflict. Indeed Putin's confidence is being buttressed by the gains of the far right in Germany and France. Thus, Ukraine now faces a very long winter which has to be put at the feet of Donald Trump. 

Note: Subsequent to publication on Saturday Oct. 24, StarShield was fully restored. It would be nice to think that Musk read this blog on X.

Sunday, October 18, 2026

France on Fire

 France is burning. What started as a student protest against dilapidated schools has turned into a nationwide round of rioting over the weekend. Instead of peaceful protest an alliance of far left and Islamist protestors (the red/green alliance) has laid waste to cities across France. (See: https://www.nytimes.com/2026/10/18/world/europe/france-protests-shock-arson.html - paywall) In Marseilles a pogrom against Jewish shopkeepers brought up memories of Nazi Germany’s 1938 Kristallnacht. Although I hate to say it, France is now paying the price for its unrestricted immigration policy.

 

Cheering on the protestors was France’s far left leader Jean-Luc Mélenchon who is in the running to be France’s next president. Of course, it wouldn’t be a protest without the anti-west Greta Thunberg showing up.

 

Almost two years ago we wrote that France was quickly becoming the new Greece of Europe. (See: https://shulmaven.blogspot.com/2024/12/2025-revenge-of-bond-vigilantes.html ) Simply put, France cannot afford to pay for its welfare state. Since then, France’s finances have deteriorated and the scenes of the collapse of public order will only make things worse. In all likelihood the French electorate will soon turn to Marine Le Pen, the doyenne of the far right to be its next president. She might be able to restore civic order, but her policies would only make France’s fiscal crisis worse.

 

However, unlike the Greek crisis of 2011, France is part of core Europe, and its fiscal problems could very well undermine the Eurozone. Although in the near term that would be dollar friendly, we shouldn’t forget that the fiscal order in the U.S. is far from perfect.