Vol. I, No. 17
Covering 31 July - 13 August 2023
Monday, August 14, 2023
Late edition · A Relentless publication
All the fortnight that mattered, in technology and in the world, read next to what we were building at the time.
HAWAII

Lahaina burns, and the deadliest American wildfire in a century leaves a town of ash

A fire driven by hurricane winds crossed a historic Maui town in minutes. People ran into the sea to survive it. The warning sirens never sounded.

Wind-driven wildfire destroyed the town of Lahaina on the Hawaiian island of Maui on August 8, killing at least 96 people, a toll expected to climb well past a hundred as searchers with cadaver dogs worked through the ruins, and making it the deadliest wildfire in the United States in more than a century. Fanned by the winds of a distant hurricane, the fire moved through the historic former royal capital so fast that residents had minutes: they fled into gridlocked streets, into burning cars, and finally into the ocean, where some clung to the seawall for hours as the town burned behind them. More than 2,000 buildings were destroyed, most of them homes. The Coast Guard pulled dozens from the water.

The questions began before the fires were out, and they are the questions this paper keeps finding under disaster after disaster. Hawaii has the largest network of outdoor warning sirens in the world, built for tsunamis; on August 8 they never sounded, and officials struggled to explain why. The power company's lines may have sparked the blaze in high wind, a known and predicted risk; water to fight it ran short. An invasive dry grass, spread across land left fallow by the collapse of the sugar plantations, had turned the hillsides into tinder that everyone who studied it had warned about. None of this was unforeseeable. All of it was foreseen, in reports and plans and warnings that sat unread until the wind came. A paradise burned in an afternoon, and the reckoning, when the grief allows it, will be about every siren that did not sound and every warning that was filed and forgotten.

WASHINGTON

Trump is charged over January 6, and a downgrade lands on the same week

A third indictment, and the gravest: the special counsel accuses a former president of conspiring to overturn an election and stay in power. Days earlier, a ratings agency marked down the credit of the United States itself.

The special counsel Jack Smith indicted Donald Trump on August 1 on four counts arising from his effort to overturn the 2020 election, including conspiracy to defraud the United States and to obstruct the counting of electoral votes. It is the third criminal case against the former president and the most consequential: not about money or documents but about an attempt, the indictment alleges, to use fraud and pressure to remain in power after losing, culminating in the mob at the Capitol on January 6. Trump pleaded not guilty in a Washington courthouse a short walk from that building. A fourth case, in Georgia, over the same election, is expected within days.

The indictment shared its week with a quieter blow to the country's standing. On August 1 the ratings agency Fitch stripped the United States of its top AAA credit rating, cutting it to AA+, citing the repeated debt-ceiling brinkmanship, the deteriorating finances, and an "erosion of governance." The Treasury secretary called it arbitrary and outdated. But the timing made the point sharper than any analyst could: in the same week that the machinery of American law charged a former president with trying to overthrow an election, a machinery of American finance marked the country down for the dysfunction of its politics. The world's safe asset, downgraded for the unreliability of the government that issues it.

WEST AFRICA

The Niger standoff hardens

The military junta that seized Niger refused a regional deadline to reinstate the deposed president, and the West African bloc ECOWAS, backed by France and the United States, activated a "standby force" while insisting it preferred diplomacy. The junta, cheered by crowds waving Russian flags and backed by the neighbouring juntas of Mali and Burkina Faso, dared the bloc to invade. The deposed president, Mohamed Bazoum, was held in his residence, reportedly without power or fresh food, warning in a smuggled message of Russian influence filling the vacuum. A region already lost to a run of coups edged toward a war between its democracies and its juntas.

IN BRIEF

Inflation ticks up; India's opposition regroups; the World Cup; the grain war

US inflation rose slightly to 3.2 percent in the year to July, the first uptick after twelve months of falls, though the underlying trend stayed encouraging. India's parliament saw a no-confidence motion over ethnic violence in Manipur, which the government easily survived, while the opposition's new 26-party alliance found its feet a year before the election. The United States were knocked out of the Women's World Cup by Sweden on penalties on August 6, a stunning early exit for the defending champions, as co-hosts Australia and an ascendant Spain advanced. Russia kept striking Ukraine's grain ports after tearing up the export deal, and Ukraine struck back at Russian shipping in the Black Sea.

INDIA

The Supreme Court reinstates Rahul Gandhi

India's Supreme Court on August 4 stayed the defamation conviction that had cost the opposition leader Rahul Gandhi his seat in parliament in March, and on August 7 he was reinstated as a member of the Lok Sabha, returning to the chamber a year before the general election. The reversal undoes, for now, a sequence this paper covered when it happened: a March conviction and a two-year sentence, the exact threshold for disqualification, that removed the government's most prominent critic within a day. The higher court found the trial court had given no adequate reason for the maximum sentence. Gandhi walked back into parliament and resumed his attack on the government over Manipur. The institutions, this time, corrected the thing the lower court had done.

The Column

The disqualification, undone, and what it says about the machine

I wrote in the spring about the speed with which India's opposition leader was removed from parliament. This fortnight the higher court put him back. Both halves of that story matter, and the second half is the one worth holding onto.

In one of the early issues of this paper, back in the spring, I wrote about how quickly Rahul Gandhi was disqualified from India's parliament: a defamation conviction on a Thursday, the maximum two-year sentence, and by Friday morning he was out, under a rule that removes any legislator sentenced to two years or more. I noted then that the two-year term was the exact threshold for disqualification, and that every lawyer who commented noticed the precision of it. This fortnight the Supreme Court stayed the conviction, and he walked back in. So let me finish the story I started, because the ending is the part that matters, and it is more encouraging than the beginning.

Here is what I think the whole episode actually shows, and it is not the thing either side wants it to show. It is not, as the government's critics say, simply proof that the system is rigged, because the system just unrigged it: the higher court looked at the lower court's sentence, found no reason had been given for choosing the maximum, and undid it. And it is not, as the government says, proof that everything is fine and the courts work, because a man was removed from parliament for months on a sentence a higher court found unjustified, and served that removal in full while the appeal ground on. Both things are true. The machine produced an unjust outcome, quickly, and then the machine corrected it, slowly. The correction is real and worth defending. The months he spent out are also real and cannot be given back.

This is, if you strip away the politics, a systems story, and it is one I know from a different domain. Every system that matters has two properties that trade against each other: how fast it acts, and how well it can undo an action that turns out to be wrong. Cheap systems are fast to act and slow, or unable, to reverse. Good systems build in the reversal, the check above the check, the appeal that can look at what the fast layer did and say no. India's judiciary, whatever its pressures, has that upper layer, and this fortnight it worked. The disqualification was the fast layer doing something questionable. The reinstatement was the slow layer catching it. A country where the fast layer acts and nothing above it can reach down and correct it is a country with a very different future, and there are more of those every year, as the West Africa story on this same front page keeps reminding us.

So I hold both halves. I keep the worry from the spring, because a system that can remove a critic in a day is a system whose fast layer is dangerous, and the speed is not an accident. And I hold the relief from this fortnight, because the layer above it reached down and corrected the error, in public, against the government's interest, which is exactly what that layer is for and exactly what is disappearing elsewhere. The measure of an institution is not whether its fast layer ever errs; it always will. The measure is whether anything above the fast layer can still say no. This fortnight, in India, something could. Hold onto the examples of that. They are getting rarer, and we will miss them when they are gone.

The Ledger
AI
A quieter fortnight for the technology, dominated by the fire, the indictment and the downgrade. The through-line holds beneath the news: the models spread, open and closed, and the governance keeps arriving late.
Data centers & power
Lahaina is, among many other things, a grid-and-utility story: power lines in high wind as a likely ignition source, an infrastructure not hardened for the climate it now operates in. The same brittleness runs under the AI build-out's power demands.
Rates
July inflation ticked up to 3.2 percent, the first rise in a year, complicating the "we are done" case. Fitch's downgrade of US credit was the fortnight's financial shock, more symbolic than practical, but symbols move markets.
Real estate
Mortgage rate 6.96 percent (August 10), near the year's high. The frozen market grinds on; Lahaina now faces the reconstruction of an entire town, and the fight over who gets to rebuild it, and for whom.
India tech
The Rahul Gandhi reversal steadies the political picture a year out. For the technology industry the relevant calm is institutional: courts that can still correct the executive are part of what makes a country a safe place to build and invest.
What we called wrong
This is the rare fortnight where a story we covered got a better ending than we implied. In No. 7 we reported the disqualification with alarm and left it there. We should have noted then that India's higher courts had the power to reverse it. This issue is the correction, and it is a happy one.
The Back Page

The sirens that stayed silent

There is a detail from Maui that will not leave me, and it belongs on this page because it is small and human and stands for the whole thing. Hawaii has about 400 outdoor warning sirens, the largest such system on Earth, tested on the first working day of every month, familiar to every resident. On the afternoon Lahaina burned, they did not sound. Officials later said they feared people would run toward the mountains, and the tsunami training, toward the fire, rather than to the sea. Perhaps. But survivors describe having no warning at all: smoke, then flame, then a scramble for the water with whatever and whoever they could carry. A woman held her family against the seawall for hours while the town crackled behind them. A man watched his neighbourhood go in the time it took to find his keys. The sirens were built, maintained, tested, ready, a whole system standing by for the emergency, and when the emergency came in a form the planners had not quite imagined, the system stayed silent, and people learned the town was ending by watching it end. Every disaster in this paper's short life has had a version of that sentence in it. The warning existed. It did not reach the person in time. We keep building the sirens. We keep, somehow, not sounding them.